HomeMy Public PortalAbout08 August 23, 2010 Budget & ImplementationRECORDS
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
BUDGET AND IMPLEMENTATION COMMITTEE
MEETING AGENDA
TIME: 9:30 a.m.
DATE: Monday, August 23, 2010
LOCATION: BOARD ROOM
County of Riverside Administrative Center
4080 Lemon Street, First Floor, Riverside
%P. COMMITTEE MEMBERS ..q?
Greg Pettis, Chair / Kathleen DeRosa, City of Cathedral City
Scott Matas, Vice Chair / Russell Betts, City of Desert Hot Springs
Roger Berg / Jeff Fox, City of Beaumont
Joseph DeConinck / To Be Appointed, City of Blythe
Ray Quinto / Jim Hyatt, City of Calimesa
Mary Craton / Jordan Ehrenkranz, City of Canyon Lake
Eduardo Garcia / Steven Hernandez, City of Coachella
Robin Lowe / Eric McBride, City of Hemet
Bob Magee / Melissa Melendez, City of Lake Elsinore
Terry Henderson / Don Adolph, City of La Quinta
Rick Gibbs / Randon Lane, City of Murrieta
Steve Adams / Andy Melendrez, City of Riverside
Ron Roberts / Jeff Comerchero, City of Temecula
John F. Tavaglione, County of Riverside, District II
Jeff Stone, County of Riverside, District III
4P- STAFF -V
Anne Mayer, Executive Director
Theresia Trevino, Chief Financial Officer
W. AREAS OF RESPONSIBILITY �d
Annual Budget Development and Oversight
Competitive Federal and State Grant Programs
Countywide Communications and Outreach Programs
Countywide Strategic Plan
Legislation
Measure A Implementation
Public Communications and Outreach Programs
Short Range Transit Plans
Comments are welcomed by the Committee. If you wish to provide comments to the Committee, please
complete and submit a Speaker Card to the Clerk of the Board.
11.36.06
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
BUDGET AND IMPLEMENTATION COMMITTEE
ROLL CALL
AUGUST 23, 2010
Present
County of .Riverside, District II
County of Riverside, District III
City ofB
City of Blythe
City of C i 6
City of Canyo
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City of Coachella
City of Desert Hot=Springs
City of Hemet
City ofLake Elsinorev
City of La Quinta
City of- Murr eta
City of Riverside
City of Temecula
Absent
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
BUDGET AND IMPLEMENTATION COMMITTEE SIGN -IN SHEET
AUGUST 23, 2010
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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 / S S / O N
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
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 .
M o n d a y , A u g u s t 2 3 , 2 0 1 0
B O A R D R O O M
C o u n t y 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 , C a l i f o r n i a
I n c o m p l i a n c e w i t h t h e B r o w n 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 7 . 5 , a g e n d a m a t e r i a l s
d i s t r i b u t e d 7 2 h o u r s p r i o r t o t h e m e e t i n g , w h i c h a r e p u b l i c r e c o r d s r e l a t i n g t o o p e n s e s s i o n
a g e n d a i t e m s , w i l l b e a v a i l a b l e f o r i n s p e c t i o n b y m e m b e r s o f t h e p u b l i c p r i o r t o t h e m e e t i n g
a t t h e C o m m i s s i o n o f f i c e , 4 0 8 0 L e m o n S t r e e t , T h i r d F l o o r , R i v e r s i d e , C A , a n d o n t h e
C o m m i s s i o n ' s w e b s i t e , w w w . r c t c . o r g .
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 y o u n e e d s p e c i a l a s s i s t a n c e t o p a r t i c i p a t e i n a C o m m i t t e e 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 t t e e 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 t t e e , 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 n 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 . A l s o , t h e C o m m i t t e e 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 . 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 . 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 t t e e 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 .
Budget and Implementation Committee
August 23, 2010
Page 2
Under the Brown Act, the Board should not take action on or discuss matters
raised during public comment portion of the agenda which are not listed on the
agenda. Board membersmay refer such matters to staff for factual
information or to be placed on the subsequent agenda for consideration.
5. APPROVAL OF MINUTES - JUNE 28, 2010
6. ADDITIONS/REVISIONS (The Committee 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 Committee subsequent to the posting of the agenda. An
action adding an item to the agenda requires 2/3 vote of the Committee. If there are
less than 2/3 of the Committee 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.)
7. 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.
7A. QUARTERLY INVESTMENT REPORT
Overview
This item is for the Committee to:
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Page 1 •
1) Receive and file the Quarterly Investment Report for the quarter
ended June 30, 2010; and
2) Forward to the Commission for final action.
7B. QUARTERLY SALES TAX ANALYSIS
Overview
This item is for the Committee to:
Page 14
1) Receive and file the sales tax analysis for Quarter 1 (Q1) 2010;
and
2) Forward to the Commission for final action.
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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 u g u s t 2 3 , 2 0 1 0
P a g e 3
7 C . S I N G L E S I G N A T U R E A U T H O R I T Y R E P O R 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 t t e e t o :
P a g e 2 0
1 ) R e c e i v e a n d f i l e t h e S i n g l e S i g n a t u r e A u t h o r i t y R e p o r t f o r t h e
f o u r t h q u a r t e r e n d e d J u n e 3 0 , 2 0 1 0 ; a n d
2 ) F o r w a r d t o t h e C o m m i s s i o n f o r f i n a l a c t i o n .
8 . P R O P O S E D D E B T I S S U A N C 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 t t e e t o :
" 9 .
"
P a g e 2 2
1 ) D i r e c t s t a f f t o c o n t i n u e e f f o r t s t o d e v e l o p a p l a n 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 ; a n d
2 ) F o r w a r d t o t h e C o m m i s s i o n f o r f i n a l a c t i o n .
F U N D I N G F O R I N T E R S T A T E 2 1 5 F R O M M U R R I E T A H O T S P R I N G S R O A D T O
S C O T T R O A D W I D E N I N G P R O J E C T
P a g e 7 6 6
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 t t e e t o :
1 ) A p p r o v e t h e u s e o f $ 9 m i l l i o n i n M e a s u r e A W e s t e r n C o u n t y C o m m u n i t y
a n d E n v i r o n m e n t a l T r a n s p o r t a t i o n A c c e p t a b i l i t y P r o g r a m ( C E T A P ) f u n d s
f o r t h e 1 - 2 1 5 w i d e n i n g p r o j e c t u n t i l r e i m b u r s e m e n t o f s t a t e f u n d s a r e
a u t h o r i z e d a n d a l l o c a t e d b y 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 ) ;
2 ) A p p r o v e a l e t t e r o f n o p r e j u d i c e ( L O N P ) f o r 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 ) f u n d s ;
3 ) A p p r o v e a S B 1 8 4 r e q u e s t f o r 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 ) f u n d s ; a n d
4 ) F o r w a r d t o t h e C o m m i s s i o n f o r f i n a l a c t i o n .
Budget and Implementation Committee
August 23, 2010
Page 4
10. PROPOSITION 1 B FISCAL YEAR 2009/10 CALIFORNIA TRANSIT SECURITY •
GRANT PROGRAM - CALIFORNIA TRANSIT ASSISTANCE FUND AND
SUPPORTING RESOLUTIONS
Page 169
Overview
This item is for the Committee to:
1) Approve discretionary allocations from the California Transit Security
Grant Program — California Transit Assistance Fund (CTSGP-CTAF)
population funds in the amount of $1,553,821 to the Riverside County
transit operators;
2) Adopt Resolution No. 10-028, "Resolution of the Riverside County
Transportation Commission Approving the Allocation of FY 2009/10
Proposition 1B-6261-0002 California Transit Security Grant Program -
California Transit Assistance Fund (CTSGP-CTAF) - Population Funds";
3) Adopt Resolution No. 10-029, "Resolution of the Riverside County
Transportation Commission Appointing Individuals to Act on Behalf of
the Commission for the Purpose of Applying and/or Accepting Grants
Awarded to the Commission's Rail Program"; and
4) Forward to the Commission for final action.
11. AGREEMENT WITH SMITH, WATTS & COMPANY, LLC FOR STATE
LEGISLATIVE ADVOCACY SERVICES
Overview
This item is for the Committee to:
Page 176
1) Award Agreement No. 10-14-105-00 to Smith, Watts & Company, LLC
for the provision of state legislative advocacy services for a two-year
term, and two, two-year options to extend the agreement in an amount
not to exceed $408,000;
2) Authorize the Chair, pursuant to legal counsel review, to execute the
agreement, including option years, on behalf of the Commission; and
3) Forward to the Commission for final action.
12. STATE AND FEDERAL LEGISLATIVE UPDATE
Overview
This item is for the Committee to:
1) Receive and file an update on state and federal legislation; and
2) Forward to the Commission for final action.
Page 183
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Budget and Implementation Committee
August 23, 2010
Page 5
13. ITEM(S) PULLED FROM CONSENT CALENDAR AGENDA
14. COMMISSIONERS / STAFF REPORT
Overview
This item provides the opportunity for the Commissioners and staff to report
on attended and upcoming meeting/conferences and issues related to
Commission activities.
15. ADJOURNMENT AND NEXT MEETING
The next Budget and Implementation Committee meeting is scheduled to be
held at 9:30 a.m., Monday, September 27, 2010, Board Chambers,
First Floor, County Administrative Center, 4080 Lemon Street, Riverside.
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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 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 o n d a y , J u n e 2 8 , 2 0 1 0
M I N U T E S
1 . C A L L T O O R D E R
T h e m e e t i n g o f t h 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 w a s c a l l e d t o
o r d e r b y C h a i r G r e g P e t t i s a t 9 : 3 0 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 , F i r s t F l o o r ,
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 S t e v e n H e r n a n d e z l e d t h 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 i n a f l a g s a l u t e .
3 . R O L L C A L L
M e m b e r s / A l t e r n a t e s P r e s e n t
S t e v e A d a m s
R o g e r B e r g
M a r y C r a t o n
R i c k G i b b s
T e r r y H e n d e r s o n
S t e v e n H e r n a n d e z
B o b M a g e e
S c o t t M a t a s
G r e g P e t t i s
R a y Q u i n t o
R o n R o b e r t s
J e f f S t o n e *
M e m b e r s A b s e n t
J o s e p h D e C o n i n c k
R o b i n L o w e
J o h n T a v a g l i o n e
` A r r i v e d a f t e r t h e m e e t i n g w a s c a l l e d t o o r d e r .
C h a i r P e t t i s t h a n k e d C o m m i s s i o n e r M a r y C r a t o n f o r c h a i r i n g t h e M a y 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 e e t i n g .
Budget and Implementation Committee Minutes
June 28, 2010
Page 2
4. PUBLIC COMMENTS
There were no requests to speak from the public.
5. APPROVAL OF MINUTES — MAY 24, 2010
M/S/C (Adams/Craton) to approve the minutes of May 24, 2010, as
submitted.
Abstain: Hernandez and Pettis
At this time, Commissioner Jeff Stone arrived at the meeting.
6. ADDITIONS / REVISIONS
There were no additions or revisions to the agenda.
7. FISCAL YEARS 2011-15 MEASURE A FIVE-YEAR CAPITAL IMPROVEMENT
PLANS FOR LOCAL STREETS AND ROADS
Andrea Zureick, Senior Staff Analyst, presented the FYs 201 1-15 Measure A
Five -Year Capital Improvement Plans (CIP) for Local Streets and Roads.
M/S/C (Craton/Henderson) to:
1) Approve the FYs 2011-15 Measure A Five -Year Capital
Improvement Plans (CIP) for Local Streets and Roads as
submitted; and
2) Forward to the Commission for final action.
8. MEASURE A LOCAL STREETS AND ROADS — MAINTENANCE OF EFFORT
BASE YEAR EXTENSION FOR FISCAL YEAR 2010/11 AND THE
2009 MAINTENANCE OF EFFORT GUIDELINES
Shirley Medina, Programming and Planning Manager, provided an overview for
the 1989 Measure A Maintenance of Effort base year extension for
FY 2010/11, and the 2009 Maintenance of Effort Guidelines.
Commissioner Ron Roberts requested as part of staffs recommendation to
include the city of Temecula since it was incorporated in 1989.
Shirley Medina concurred.
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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 u t e s
J u n e 2 8 , 2 0 1 0
P a g e 3
M / S / C ( R o b e r t s / C r a t o n ) t o :
1 ) A p p r o v e u s i n g t h e 1 9 8 9 M e a s u r e A M a i n t e n a n c e o f E f f o r t
( M O E ) b a s e y e a r a m o u n t f o r t h e F Y 2 0 1 0 / 1 1 M e a s u r e A L o c a l
S t r e e t s a n d R o a d s M O E c e r t i f i c a t i o n ;
2 ) F o r c i t i e s i n c o r p o r a t e d i n o r a f t e r 1 9 8 9 , e x c l u d i n g t h e c i t i e s o f
M e n i f e e a n d W i l d o m a r , a p p r o v e u s i n g t h e P r o p o s i t i o n 4 2 M O E
a m o u n t f o r t h e F Y 2 0 1 0 / 1 1 M e a s u r e A L o c a l S t r e e t s a n d R o a d s
M O E c e r t i f i c a t i o n ;
3 ) A p p r o v e t h e 2 0 0 9 M e a s u r e A L o c a l S t r e e t s a n d R o a d s M O E
G u i d e l i n e s ; a n d
4 ) F o r w a r d t o t h e C o m m i s s i o n f o r f i n a l a c t i o n .
9 . C O M M E R C I A L A D V E R T I S I N G P O L I C Y A N D C O N T E N T G U I D E L I N E S , A N D
I N C I D E N T A L U S E P O L I C Y
S h e l d o n P e t e r s o n , R a i l M a n a g e r , p r e s e n t e d t h e r e s o l u t i o n t o a d o p t t h e
C o m m e r c i a l A d v e r t i s i n g P o l i c y a n d C o n t e n t G u i d e l i n e s , a n d t h e I n c i d e n t a l U s e
P o l i c y f o r t h e C o m m i s s i o n - o w n e d s t a t i o n s .
C o m m i s s i o n e r S t o n e s u g g e s t e d a d v e r t i s i n g o n t h e M e t r o l i n k e l e c t r o n i c t i c k e t s ,
r o l l i n g k i o s k s , c e l l t o w e r s a f f i x e d t o t h e p a r k i n g s t r u c t u r e s , b i l l b o a r d s i g n s
a l o n g t h e r i g h t s o f w a y , a n d p o t e n t i a l l y r e - e v a l u a t e t h e p o l i c y t o a l l o w a l c o h o l i c
b e v e r a g e a d v e r t i s i n g t o c r e a t e a l a r g e r m a r k e t o f a d v e r t i s e r s .
I n r e s p o n s e t o C o m m i s s i o n e r R i c k G i b b s ' r e q u e s t f o r c l a r i f i c a t i o n i f t h e
c o m m e r c i a l a d v e r t i s i n g p o l i c y w a s r e v i e w e d b y l e g a l c o u n s e l a n d i f t h e
a d v e r t i s i n g f e e s a r e f i x e d , S h e l d o n P e t e r s o n r e p l i e d t h e p o l i c y w a s r e v i e w e d b y
t h e C o m m i s s i o n ' s l e g a l c o u n s e l a n d m o s t o f t h e r e s t r i c t i o n s c a m e f r o m t h e
L o s A n g e l e s C o u n t y M e t r o p o l i t a n T r a n s p o r t a t i o n A u t h o r i t y ' s c o m m e r c i a l
a d v e r t i s i n g p o l i c y . H e s t a t e d t h e f e e s a r e o p e n f o r d i s c u s s i o n a s t h i s a g e n d a
i t e m e s t a b l i s h e s a p o l i c y t o a l l o w t h e C o m m i s s i o n t o p u r s u e t h i s o p t i o n .
C o m m i s s i o n e r G i b b s 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 S t o n e ' s c o m m e n t a n d
s u g g e s t e d a s l i d i n g s c a l e o f f e e s f o r a d v e r t i s i n g l o c a t i o n s .
A t C o m m i s s i o n e r C r a t o n ' s r e q u e s t , S h e l d o n P e t e r s o n c l a r i f i e d t h e i n t e n t o f t h e
n a m i n g r i g h t s s e c t i o n a n d n o t e d t h a t i t i s l i s t e d a s a p o l i c y f o r c o n s i d e r a t i o n .
S h e e x p r e s s e d c o n c e r n f o r a d v e r t i s i n g a l c o h o l i c b e v e r a g e s o n C o m m i s s i o n -
o w n e d p r o p e r t y s i n c e t h e C o m m i s s i o n i s a t r a n s p o r t a t i o n a g e n c y .
C o m m i s s i o n e r S t e v e A d a m s d i s c u s s e d t h e c i t y o f R i v e r s i d e ' s f r e e p u b l i c a c c e s s
t e l e v i s i o n a n d s u g g e s t e d u t i l i z i n g i t t o a d v e r t i s e p u b l i c t r a n s p o r t a t i o n p r o g r a m s .
Budget and Implementation Committee Minutes
June 28, 2010
Page 4
Sheldon Peterson replied Metrolink has provided closed caption television
promotions through Time Warner Cable and staff will look into broadcasting
those promotions through public access television.
Commissioner Roger Berg referred to the proposed guideline that states the
Commission will respect the guidelines of each city and therefore would be
applied to alcoholic beverage advertising. He expressed concern about the
restriction on non-commercial advertising as he believes it limits the
Commission's opportunities.
Commissioner Terry Henderson highly recommended that well-defined criteria
be established immediately for naming rights and asked for clarification on
Commissioner Berg's concern regarding non-commercial advertising.
Sheldon Peterson replied the non-commercial advertising guidelines states that
the Commission does not accept advertising from non -governmental entities if
the subject matter's intent of said advertising is non-commercial.
John Standiford, Deputy Executive Director, explained the intent was not to
limit universities or military, it relates to political advertising. He stated staff
will review with legal counsel to strengthen the wording to clarify the intent.
Commissioner Ron Roberts expressed he does not support advertising alcoholic
beverages on Commission -owned property.
Commissioner Berg provided additional examples of non-commercial
advertisers that would be restricted based on the current wording of the
guidelines such as rotary or alliance clubs.
In response to Commissioner Ray Quinto question, Sheldon Peterson replied
the Commission will comply with all local agency policies for signage and
advertising. He explained once the Commission adopts the policy, a request
for proposal will be developed and the proposals will be presented to the
Commission for action.
Commissioner Hernandez stated he believes that alcoholic beverage advertising
and even tobacco advertising are acceptable as long as the agencies that
advertise against their use are also able to do so. He believes it is not the
Commission's responsibility to regulate morals or health issues.
John Standiford expressed gratitude for the Commissioners' comments and
stated the comments will be reviewed for incorporation into the policy for the
Commission's final approval.
•
•
"
"
"
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 u t e s
J u n e 2 8 , 2 0 1 0
P a g e 5
I n r e s p o n s e t o C o m m i s s i o n e r S t o n e ' s q u e s t i o n , S h e l d o n P e t e r s o n r e p l i e d t h e r e
a r e a p p r o x i m a t e l y 5 , 0 0 0 c o m m u t e r r a i l p a s s e n g e r s p e r d a y .
C o m m i s s i o n e r S t o n e s t a t e d t h i s i s a s i g n i f i c a n t p o p u l a t i o n t o a d v e r t i s e t o a n d
t h e b e g i n n i n g o f a s i g n i f i c a n t r e v e n u e s o u r c e .
M / S / C ( S t o n e / A d a m s ) t o :
1 ) A d o p t a C o m m e r c i a l A d v e r t i s i n g P o l i c y a n d C o n t e n t G u i d e l i n e s ,
a n d I n c i d e n t a l U s e P o l i c y ;
2 ) A d o p t R e s o l u t i o n N o . 1 0 - 0 1 1 , " A 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 d o p t i n g a C o m m e r c i a l
A d v e r t i s i n g P o l i c y a n d C o n t e n t G u i d e l i n e s , a n d a n I n c i d e n t a l
U s e P o l i c y C o v e r i n g C o n c e s s i o n S t a n d s , M e r c h a n d i s i n g , a n d
C o n t r a c t o r S e r v i c e s f o r C o m m i s s i o n - O w n e d F a c i l i t i e s a n d
P r o p e r t y " ; a n d
3 ) F o r w a r d t o t h e C o m m i s s i o n f o r f i n a l a c t i o n .
1 0 . R I V E R S I D E C O U N T Y T R A N S I T S E R V I C E S F U N D I N G A L L O C A T I O N F O R
F I S C A L Y E A R 2 0 1 0 / 1 1
F i n a C l e m e n t e , T r a n s i t M a n a g e r , p r e s e n t e d t h e R i v e r s i d e C o u n t y t r a n s i t
s e r v i c e s f u n d i n g a l l o c a t i o n f o r F Y 2 0 1 0 / 1 1 , h i g h l i g h t i n g t h e f o l l o w i n g :
" S h o r t R a n g e T r a n s i t P l a n s F Y 2 0 1 0 / 1 1 - F Y 2 0 1 2 / 1 3 f o r 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 , R i v e r s i d e , R i v e r s i d e T r a n s i t A g e n c y ,
S u n L i n e T r a n s i t A g e n c y , P a l o V e r d e V a l l e y T r a n s i t A g e n c y , a n d t h e
C o m m i s s i o n ' s C o m m u t e r R a i l P r o g r a m ;
" S t a t e a n d l o c a l r e v e n u e s ;
" O p e r a t i n g a n d c a p i t a l c o s t s c o m p a r i s o n : F Y 2 0 0 8 / 0 9 - F Y 2 0 1 0 / 1 1 ;
a n d
" R i v e r s i d e C o u n t y : F Y 2 0 1 0 / 1 1 o p e r a t i n g a n d c a p i t a l c o s t s .
M / S / C ( H e n d e r s o n / S t o n e ) t o :
1 ) C o n d u c t a p u b l i c h e a r i n g a t t h e J u l y C o m m i s s i o n m e e t i n g o n
t h e p r o p o s e d S e c t i o n 5 3 0 7 P r o g r a m o f P r o j e c t s ( P O P ) ;
2 ) A p p r o v e t h e F Y 2 0 1 0 / 1 1 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 ' s ( F T A )
S e c t i o n 5 3 0 7 a n d 5 3 1 1 P O P f o r R i v e r s i d e C o u n t y ;
3 ) A p p r o v e t h e F Y 2 0 1 0 / 1 1 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 ) a n d
S t a t e T r a n s i t A s s i s t a n c e ( S T A ) f u n d a l l o c a t i o n s f o r t r a n s i t ;
4 ) D i r e c t s t a f f t o a d d p r o j e c t s i n t o t h e R e g i o n a l 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 l a n ( R T I P ) ;
Budget and Implementation Committee Minutes
June 28, 2010
Page 6
5) Adopt Resolution No. 10-025, "Resolution of the Riverside
County Transportation Commission to Allocate State Transit
Assistance Funds'; and
6) Forward to the Commission for final action.
11. TRANSPORTATION INVESTMENT GENERATING ECONOMIC RECOVERY II
TRANSPORTATION INFRASTRUCTURE FINANCE AND INNOVATION ACT
PROGRAM
John Standiford presented Agenda Item 11 and 12 concurrently, discussing
the following areas:
• Update on state and federal legislation;
• AB 1955 (De La Torre) Incompatible Offices - Oppose;
• H.R. 891 // S. 322 Commuter Benefits - Support; and
• Update on the Transportation Investment Generating Economic
Recovery II (TIGER II) program.
Commissioner Henderson expressed concern for the issues currently going
on in Sacramento and heavily emphasized the critical importance of paying
close attention, remaining involved, and communicating our views.
M/S/C (Craton/Stone) to:
1) Authorize staff to apply for Transportation Investment
Generating Economic Recovery II (TIGER II) Transportation
Infrastructure Finance and Innovation Act (TIFIA) program for
the State Route 91 Corridor Improvement Project (SR-91 CIP);
2) Authorize staff to support regionally significant projects
nominated for TIGER II by members of the Southern California
Consensus Group (SCCG), as appropriate; and
3) Forward to the Commission for final action.
12. STATE AND FEDERAL LEGISLATIVE UPDATE
M/S/C (Craton/Stone) to:
1) Receive and file an update on state and federal Legislation;
2) Approve the following bill positions:
a) AB 1955 (De La Tone) - OPPOSE;
b) H.R. 891 (McGovern) - SUPPORT;
c) S. 322 (Schumer) - SUPPORT; and
31 Forward to the Commission for final action.
•
•
"
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 :
A u g u s t 2 3 , 2 0 1 0
T O :
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
F R O M :
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 R O U G H :
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
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
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 t t e e t o :
1 ) 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
J u n e 3 0 , 2 0 1 0 ; a n d
2 ) F o r w a r d t o t h e C o m m i s s i o n f o r f i n a l a c t 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 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 J u n e 3 0 , 2 0 1 0 , i s a l s o a t t a c h e d f o r r e v i e w .
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 J u n e 3 0 , 2 0 1 0
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 J u n e 3 0 , 2 0 1 0
A g e n d a I t e m 7 A
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M s C p u n t y
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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
J u n e 3 0 , 2 0 1 0 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 M a y 1 2 , 2 0 1 0 .
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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0 4 - J u l 5 . 8 % s u r v e y ) P a p a l ( c h a n g e ( - 1 2 5 0 0 0
a c t u a l v s . - 1 2 5 0 0 0 s u r v e y )
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J u n e g l o o m i s t h e S o u t h e r n C a l i f o r n i a
s u m m e r w e a t h e r p a t t e r n t h a t r e s u l t s i n o v e r c a s t s k i e s w i t h
c o o l t e m p e r a t u r e s . I t i s a n o f f s h o r e m a r i n e l a y e r w h i c h
c r e a t e s t h e c l o u d y , c o o l e f f e c t o n l a n d . S o f a r o u r e c o -
n o m i c J u n e g l o o m i s t u r n i n g o u t t o h a v e t h e s a m e e f f e c t
o n o u r m a r k e t s a s w e l l ; e c o n o m i c r e p o r t s h a v e n o t f a r e d
w e l l s o f a r t h i s m o n t h a n d l o o k s a s i f i t w i l l c a r r y o v e r i n t o
J u l y a n d b e y o n d t o b e c o m e o u r " S u m m e r B u m m e r " .
M o s t o f t h e f e d e r a l g o v e r n m e n t ' s s t i m u l u s p r o -
g r a m s h a v e e i t h e r r u n t h e i r c o u r s e o r a r e d u e t o r u n o u t o f
s t e a m s o o n . T h i s i s a n i m p o r t a n t f a c t o r a s t h e s t i m u l u s
m o n e y h a d p r o v i d e d f o r j u s t o v e r h a l f o f o u r e c o n o m i c
g r o w t h i n t h e 1 ' t q u a r t e r w i t h t h e r e s t c o m i n g f r o m t h e p r i -
v a t e s e c t o r .
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d o w n a l m o s t 3 3 % i n J u n e , a f t e r h o m e b u y e r t a x c r e d i t s h a d
e x p i r e d . T h e s t o r y i s m u c h t h e s a m e w i t h p e n d i n g h o m e
s a l e s d o w n 3 0 % , g r e a t e r t h a n t h e e x p e c t e d 1 4 % d e c l i n e .
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' a p e r C a i l i ��
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c a m e i n a t 5 2 . 9 v s . t h e 6 2 . 5 e x -
p e c t e d , d e f i n i t e l y l e s s t h a n e x -
p e c t e d . T h e e c o n o m i c i n d i c a t o r s ,
c o u p l e d w i t h t h e p r i v a t e s e c t o r h a v -
i n g t o c a r r y a l l o f t h e e c o n o m i c
w e i g h t w i t h o u t a d d i t i o n a l g o v e r n -
m e n t i n t e r v e n t i o n a l o n g w i t h t h e
s p e c t e r o f m i l l i o n s o f w o r k e r s c o m -
i n g o f f e x t e n d e d u n e m p l o y m e n t
b e n e f i t s , i s l i k e l y t o c o n t i n u e t o p l a c e
a h u g e b u r d e n o n t h e f l e d g l i n g U . S .
e c o n o m y .
A s w e h a d a n t i c i p a t e d , t h e r e w e r e n o c h a n g e s i n
i n t e r e s t r a t e s a t t h e J u n e 2 3 r d F O M C m e e t i n g a n d o n c e
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l a t e r , i n 2 0 1 1 .
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0 k t a r t h ? V I I ' r i o l f i e d
r e r ' s P o o l e d I n v e s t m e n t F u n d i s c o m p o s e d o f C o u n t y , S c h o o l s , S p e c i a l D i s t r i c t s a n d o t h e r D i s c r e t i o n a r y D e p o s i t o r s
5 , 8 0 0 , 8 5 2 , 6 0 9 . 8 0
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5 , 7 6 8 , 9 9 2 , 0 6 6 . 2 6
6 , 2 6 5 , 7 2 1 . 4 8
1 7 , 6 1 2 , 3 0 3 . 9 8
" t i o n
4
The Fed maintained the target
rate at a range of 0 to 25 bps.
The 2 year T-Note was yielding
0.61% (down 15bps) while the
10 year T-Note was yielding
2.97% (down 34bps). For June,
the Pool had an increase of 3 bps
in the average monthly yield.
3 Mo US
Treasury Bill
6 Mo US
Treasury Bill
2YrUS
Treasury Note
5YrUS
Treasury Note
10YrUS
Treasury Note
0.18 0,02
0.22 0.00
0.61 (0.15)
1.79 (0.31)
2.97 (0.34)
FED Fund Rate 0-.25 0.00
Crude Oil
(barrel)
Gold Ounce
75.63 1.66
1,242.25 26.05
DJIA 9,774.02 (362.58)
S&P500 1,030.71 (58.70)
NASDAQ 2,109.24 (147.80)
Page 1 •
41,548,005 0.49
3.48
Sector breakdown
MMF
Negotiable COs
539,108,108 0.08
0.25
Municipal Bonds
Bond - U.S. Treasury
' A-1/ P-1 or
better. 1.00%
Federal Agencyand
LSS frc•usury 87.005/1: -.
Maturity Distribution
30%
25%
20%
15%
10%
5%
0%
30 days or
Less
30 - 90 Days
90 Days - 1
Year
1- 2 Years 2- 3 Years Over 3 Years
Jun -Oa Jul -OS Aug-09 Sep-09 Oat-09 Nov-Oe Owe 09 Jan•10
Cash Flows2
Itton 81A
07/2010
09/2010
11/3010
01/2011
735.29
566.39
754.63
615.93
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799.59
767.61
1,409.36
(372.56)
(233.20)
(12 98)
t .
(793.43)
233.20
1,05553
398 00
4 86
22990
03/2011
952.96
850.00 102.96
102.96
13 65
05/2011
760 95
1.200.00
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233.52
129.99
nti
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t Treasurer's Institutional Money Market Index (IIMM1)
is compiled and reported by the Riverside Count` Treas-
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derived from the average of three multi -billion dollar
AAA rated Prime ()rods that invest in a diversified portfo-
lio of US. dollar denominated money market instruments
including U.S. Treasuries, government agencies. bankers'
acceptances, commercial paper, certificates of deposits,
repurchase agreements, etc.) por folios that the Treasurer
tracks. Further details available upon request. Current
funds are ASTITGA, WFJKC(12/09). and MPFXX.
e The Pooled Investment Frond cash tow requirements
are based upon a 12 month historical cash flow model.
Rased upon projected cash receipts and maturing invest-
ments, there are sufficient funds to meet figure cash:low
disbursements over the next 12 months.
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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 / S S / O N
D A T E :
A u g u s t 2 3 , 2 0 1 0
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 :
Q u a r t e r l y S a l e s T a x A n a l y s i 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 s a l e s t a x a n a l y s i s f o r Q u a r t e r 1 ( Q 1 ) 2 0 1 0 ; a n d
2 ) F o r w a r d t o t h e C o m m i s s i o n f o r f i n a l a c t 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 D e c e m b e r 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 w a r d e d a n a g r e e m e n t t o
M u n i S e r v i c e s , L L C ( M u n i S e r v i c e s ) f o r q u a r t e r l y s a l e s t a x r e p o r t i n g s e r v i c e s p l u s
a d d i t i o n a l f e e s c o n t i n g e n t o n a d d i t i o n a l s a l e s t a x r e v e n u e g e n e r a t e d f r o m t h e
t r a n s a c t i o n s a n d u s e t a x ( s a l e s t a x ) a u d i t s e r v i c e s . T h e s e r v i c e s p e r f o r m e d u n d e r
t h i s a g r e e m e n t p e r t a i n t o o n l y t h e M e a s u r e A s a l e s t a x e s .
S i n c e t h e c o m m e n c e m e n t o f t h e s e s e r v i c e s , M u n i S e r v i c e s h a s s u b m i t t e d a n a u d i t
u p d a t e , w h i c h r e p o r t e d f i n d i n g s t h a t h a v e b e e n g e n e r a t e d a n d s u b m i t t e d 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 ( S B O E ) f o r r e v i e w a n d d e t e r m i n a t i o n o f e r r o r s i n s a l e s
t a x r e p o r t i n g r e l a t e d t o 1 3 8 b u s i n e s s e s . T h r o u g h Q 1 2 0 1 0 f o r J a n u a r y t h r o u g h
M a r c h 2 0 1 0 , t h e S B O E h a s a p p r o v e d c o r r e c t i o n s f o r 8 1 o f t h e s e a c c o u n t s f o r a
t o t a l s a l e s t a x r e v e n u e r e c o v e r y o f $ 8 8 8 , 3 4 5 . I f t h e S B O E c o n c u r s w i t h t h e
e r r o r ( s ) f o r t h e r e m a i n i n g c l a i m s , t h e C o m m i s s i o n w o u l d r e c e i v e a d d i t i o n a l
r e v e n u e s ; h o w e v e r , t h e m a g n i t u d e o f t h e v a l u e o f t h e r e m a i n i n g f i n d i n g s w a s n o t
a v a i l a b l e . I t i s i m p o r t a n t t o n o t e t h a t w h i l e t h e r e c o v e r i e s o f a d d i t i o n a l r e v e n u e s
w i l l b e t a n g i b l e , i t w i l l n o t b e s u f f i c i e n t t o a l t e r t h e o v e r a l l t r e n d o f s a l e s t a x
r e v e n u e s .
A d d i t i o n a l l y , M u n i S e r v i c e s h a s p r o v i d e d t h e C o m m i s s i o n w i t h t h e q u a r t e r l y s a l e s
t a x s u m m a r y r e p o r t f o r t h e f i r s t q u a r t e r o f c a l e n d a r 2 0 1 0 f o r J a n u a r y t h r o u g h
M a r c h 2 0 1 0 . M o s t o f t h e Q 1 2 0 1 0 M e a s u r e A s a l e s t a x e s w e r e r e c e i v e d b y t h e
C o m m i s s i o n i n t h e s e c o n d q u a r t e r o f c a l e n d a r 2 0 1 0 , d u r i n g A p r i l t h r o u g h
J u n e 2 0 1 0 d u e t o a l a g i n t h e s a l e s t a x c a l e n d a r . T h e s u m m a r y s e c t i o n o f t h e Q 1
2 0 1 0 r e p o r t i s i n c l u d e d a s a n a t t a c h m e n t t o t h e s t a f f r e p o r t a n d i n c l u d e s a n
A g e n d a I t e m 7 B
1 4
overview of California sales tax receipts, local results, historical cash collections
analysis, summary of the top 25 sales tax contributors, historical sales tax
amounts, sales tax by business category, economic trends for a significant
business category, and results. The following observations were noted in the Q1
2010 report:
• Sales tax receipts for Riverside County were slightly higher (0.1 %) compared
to the Q1 2009, providing support to the prior quarterly report analysis that
the economic decline was slowing. However, similar to the state's
experience, much of the growth that occurred came from higher gas prices.
Overall growth is expected after the jobs and housing markets stabilize.
• Taxable transactions for the Top 25 Tax Contributors in Riverside County,
which generated 24% of the sales tax in Q1 2010, increased 5.2%
compared to Q1 2009.
• Over the last two-year period, the Q1 2010 sales tax levels were at or near
the low points for eight of the top ten economic segments; the levels for
service stations and apparel stores improved by moving above the low
points.
• Over the last two-year period, the Q1 2010 sales tax levels for new auto
sales and building materials -wholesale showed a significant variance from
the high point, indicating that these segments continue to have been
significantly affected by the slowdown in the economy.
• Department stores, restaurants, and service stations continue to represent
the three largest economic segments for Riverside County.
• The order of the top tier of the top ten economic segments has been
consistent, while the order of the bottom tier group of five segments
changed. The sales tax level of these five segments ranged from
$5.87 million to $6.37 million, representing no significant differentiation.
• When comparing the Q1 2010 benchmark year level to Q1 2008, the
decrease over the two-year period is 23.5%.
• The construction economic category is below post-2004 levels; general retail
and transportation have shown improvements over the last two or three
quarters.
Staff continues to monitor monthly sales tax receipts and other available economic
data to determine the need for any additional adjustment to the revenue projections
in FY 2010/11. Staff will utilize the forecast scenarios included with the complete
report and recent trends in assessing such projections.
Attachment: Sales Tax Analysis for Q1 2010
Agenda Item 7B
•
•
15
"
"
D i s t r i c t o f R i v e r s i d e C o R c t c
S a l e s T a x D i g e s t S u m m a r y
2 n d Q u a r t e r 2 0 1 0 C o l l e c t i o n o f 1 s t Q u a r t e r 2 0 1 0 S a l e s
C A L I F O R N I A O V E R V I E W
F o r t h e f i r s t t i m e s i n c e 2 0 0 7 t h e S t a t e ' s q u a r t e r - o v e r - s a m e - q u a r t e r - p r i o r - y e a r s a l e s t a x i n c r e a s e d b y
0 . 5 % i n 1 5 t Q u a r t e r 2 0 1 0 . W h i l e t h e n e w s i s t h e f i r s t p o s i t i v e s i g n i n s e v e r a l y e a r s , t h e s t a t e ' s e c o n o m y
d o e s n o t s h o w i m m e d i a t e s i g n s o f i m p e n d i n g g r o w t h a s m u c h o f t h e 0 . 5 % i n c r e a s e c a m e f r o m i n c r e a s e d
g a s o l i n e p r i c e s o v e r t h e p r i o r y e a r . E v e n t u a l g r o w t h w i l l c o m e s l o w l y a f t e r t h e j o b s m a r k e t a n d h o u s i n g
m a r k e t s s t a b i l i z e .
V a r y i n g i n s t a b i l i t y i n r e g i o n a l h o u s i n g m a r k e t s a n d j o b m a r k e t s h a s c h a n g e d t h e w a y s t a t e o b s e r v e r s
v i e w C a l i f o r n i a ' s d i v e r s e e c o n o m i e s . T h e t r a d i t i o n a l c o m p a r i s o n o f N o r t h e r n C a l i f o r n i a t o S o u t h e r n
C a l i f o r n i a i s c h a n g i n g t o a c o m p a r i s o n o f W e s t e r n C a l i f o r n i a t o E a s t e r n C a l i f o r n i a . W e s t e r n C a l i f o r n i a
i n c l u d e s t h e N o r t h C o a s t , S a n F r a n c i s c o B a y A r e a , C e n t r a l C o a s t a n d S o u t h C o a s t r e g i o n s , w h i c h g r e w
1 . 2 % i n r t Q u a r t e r 2 0 1 0 c o m p a r e d t o 1 5 t Q u a r t e r 2 0 0 9 . E a s t e r n C a l i f o r n i a i n c l u d e s t h e S a c r a m e n t o
V a l l e y , C e n t r a l V a l l e y a n d I n l a n d E m p i r e r e g i o n s , w h i c h d e c l i n e d 1 . 9 % i n t h e s a m e p e r i o d . A s f o r t h e
D i s t r i c t o f R i v e r s i d e C o R c t c , s a l e s c h a n g e d b y . 1 % .
L O C A L R E S U L T S
N e t C a s h R e c e i p t s A n a l y s i s
L o c a l C o l l e c t i o n s
S h a r e o f C o u n t y P o o l 0 . 0 %
S h a r e o f S t a t e P o o l 0 . 0 %
S B E N e t C o l l e c t i o n s
L e s s : A m o u n t D u e C o u n t y 0 . 0 %
L e s s : C o s t o f A d m i n i s t r a t i o n
N e t 1 Q 2 0 1 0 R e c e i p t s
N e t 1 Q 2 0 0 9 R e c e i p t s
A c t u a l P e r c e n t a g e C h a n g e
$ 2 8 , 2 2 3 , 2 3 1
0
0
2 8 , 2 2 3 , 2 3 1
. 0 0
( 1 9 5 , 4 7 0 )
2 8 , 0 2 7 , 7 6 1
2 8 , 0 0 3 , 5 0 5
. 1 %
B u s i n e s s A c t i v i t y P e r f o r m a n c e A n a l y s i s
L o c a l C o l l e c t i o n s
L e s s : P a y m e n t s f o r P r i o r P e r i o d s
P r e l i m i n a r y 1 0 2 0 1 0 C o l l e c t i o n s
P r o j e c t e d 1 0 2 0 1 0 L a t e P a y m e n t s
P r o j e c t e d 1 Q 2 0 1 0 F i n a l R e s u l t s
A c t u a l 1 Q 2 0 0 9 R e s u l t s
P r o j e c t e d P e r c e n t a g e C h a n g e
$ 2 8 , 2 2 3 , 2 3 1
( 1 , 6 4 0 , 8 2 2 )
2 6 , 5 8 2 , 4 0 9
1 , 2 1 4 , 7 8 0
2 7 , 7 9 7 , 1 8 9
2 7 , 8 4 7 , 3 0 2
- . 2 %
w w w . M u n i S e r v i c e s . c o m
( 8 0 0 ) 8 0 0 - 8 1 8 1
1 6
P a g e 1
District of Riverside Co Rctc
HISTORICAL SALES TAX AMOUNTS
The following chart shows the sales tax level for the year ended ft Quarter 2010, the highs, and the
lows for each segment over the last two years.
(in thousands of$)
■1Q2010
♦ High
a Low
$18,000
$16,000
• -
$14,000
$12,000
$10,000
•
$8,000
$,000
$4,000
$2,000
$0
tio�sS ,10`� ♦ocs .�`�' m". e`S s�' <� �.bJ 't4'
N.
149 * ''� o ' cPa0 ooa �,q Qom{ cl
9sfi =�`' Q,o'` ``��� 4 ��a� PQ 4�a$ ti,,4,
s
ANNUAL SALES TAX BY BUSINESS CATEGORY
(in thousands of $)
1 Q2010
4Q2009
3Q2009
202009
1 Q2009
402008
3Q2008
2Q2008
1 Q2008
4Q2007
$O $20,000 540,000 560,000 $80,000 $100,000 $120,000 $140,000-5160,000
General Retail Food Products ED Transportation Const ction® Business ToB Business Miscellaneous
www.MuniServices.com (800) 800-8181 Page 3
18
District of Riverside Co Rctc
FIVE-YEAR ECONOMIC TREND: Construction
S8,000
S7,000
$6,000
S3,00011
$Z,OoO
$1,000
SO
(in thousands of $)
" I ' I I I
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I 1 I 1 1 1 I 1 1 I 1 1 1 I II
1 1 I I I I_ I I I I I I i I I I I I
I I.. I- I I I I I I I I I I I I- I I I I I - I
N M WI Y5 b ,O V ..O. •- •-- 1,-. N CO 00 00 a0 ON O, O, O, O
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acoN N a a a N No,7a a a a a c c a a
4t QUARTER 2009 FINAL RESULTS
Local Net Cash Collections
Less: Pool Amounts
Less: Prior Quarter Payments
Add: Late Payments
Local Net Economic Collections after Adjustments
Percent Change from 4t Quarter 2008
MUNISERVICES' ON -GOING AUDIT RESULTS
This Quarter $97,636
Total to Date $696,382
$29,966,847
($-365,500)
($2,034,679)
$1,313,197
$29,610,865
DOWN BY6.7%
www.MuniServices.com (800) 800-8181 Page 4
19
"
"
"
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 :
A u g u s t 2 3 , 2 0 1 0
T O :
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
F R O M :
G r e g M o o r e , P r o c u r e m e n t a n d A s s e t s M a n a g e r
T H R O U G H :
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
S U B J E C T :
S i n g l e S i g n a t u r e A u t h o r i t y R e p o r t
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 t t e e t o :
1 ) R e c e i v e a n d f i l e t h e S i n g l e S i g n a t u r e A u t h o r i t y R e p o r t f o r t h e f o u r t h q u a r t e r
e n d e d J u n e 3 0 , 2 0 1 0 ; a n d
2 ) F o r w a r d t o t h e C o m m i s s i o n f o r f i n a l a c t 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 a t t a c h e d r e p o r t d e t a i l s a l l p r o f e s s i o n a l s e r v i c e s a n d a d m i n i s t r a t i v e c o n t r a c t s
t h a t h a v e b e e n e x e c u t e d f o r t h e f o u r t h q u a r t e r e n d e d J u n e 3 0 , 2 0 1 0 , u n d e r t h e
S i n g l e S i g n a t u r e A u t h o r i t y g r a n t e d t o t h e E x e c u t i v e D i r e c t o r b y t h e C o m m i s s i o n .
T h e u n u s e d c a p a c i t y a t J u n e 3 0 , 2 0 1 0 i s $ 1 0 5 , 7 8 8 .
A t t a c h m e n t : S i n g l e S i g n a t u r e A u t h o r i t y R e p o r t a s o f J u n e 3 0 , 2 0 1 0
A g e n d a I t e m 7 C
2 0
"
S I N G L E S I G N A T U R E A U T H O R I T Y
A S O F J U N E 3 0 , 2 0 1 0
O R I G I N A L
C O N T R A C T
C O N S U L T A N T D E S C R I P T I O N O F S E R V I C E S A M O U N T
? A M O U N T A V A I L A B L E J u l y 1 , 2 0 0 9
i . N e x t I n s i g h t
! . A T B T M o b i l i t y
V e r i z o n
,
S m i t h , W a t t s ' , & C o m p a n y ; : . .
P r e p a r a t i o n o f G o o g l e T r a n s i t F e e d
S p e c i f i c a t i o n s
S t a t e o f C a l i f o r n i a 5 1 1 I n l a n d E m p i r e T r a v e l e r
P r o g r a m
P A I D A M O U N T
$ 5 0 0 , 0 0 0 . 0 0
2 6 , 4 1 2 . 0 0 1 7 , 1 0 8 . 0 0
2 , 5 0 0 . 0 0 2 , 5 0 0 . 0 0
5 1 1 R o u t i n g S e r v i c e 4 9 , 0 0 0 . 0 0 1 7 , 3 7 9 . 0 3
L e g a l R e p r e s e n t a t i o n 5 0 , 0 0 0 . 0 0 4 0 , 5 7 2 . 7 0
B o n d C o u n s e l S e r v i c e s 4 4 , 5 0 0 . 0 0
f i n e C e g s l P Y P I S e P A P : e s . 1 4 N i i l , .
E n g i n e e r i n g R e s o u r c e s o S o u t h e r n C a l i f o m f a , 1 p C . - i , F i n a k , O e k t p ��: p , n s i 0 c n . 0 : 0 , 4 : 4 4 * . p p o 0 : 0 , 1 g i s n i r g i l l g i i g
: B e r n a r d J . A r o y o
, f 6 e a G 7 n E p o j h o m i c s
M c G l a d r e q & p u i l e n , L L C
! , A M O U N T U S E D
I A M O U N T U S E D
{ A M O U N T R E M A I N I N G t h r o u g h J u n e 3 0 , 2 0 1 0
e a i u " I ��f n 4 ��a n r c a s �� t ����'
A i
M p l t h n w W a l l a r a T h r r e < l a T r r v i n n
P r e p a r e d b y
" N p t e : s h a d e d a k a r e a r e s ��n l f 7 n �� w c o ��f r S o U l s t a f J ��t g j
R e v i e w e d b y
{
1 � 1 ; L
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3 9 4 , 2 1 2 . 0 0
3 9 4 , 2 1 2 . 0 0
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e a u
0 . 0 0
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C O N T R A C T
A M O U N T
9 , 3 0 4 . 0 0
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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
D A T E :
A u g u s t 2 3 , 2 0 1 0
T O :
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
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 :
J o h n S t a n d i f o r d , 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 D e b t I s s u a n c 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 ) D i r e c t s t a f f t o c o n t i n u e e f f o r t s t o d e v e l o p a p l a n 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 ; a n d
2 ) F o r w a r d t o t h e C o m m i s s i o n f o r f i n a l a c t i o n .
B A C K G R O U N D I N F O R M A T I O N :
I n M a r c h 2 0 0 5 , t h e C o m m i s s i o n l a u n c h e d i t s $ 1 8 5 m i l l i o n c o m m e r c i a l p a p e r
p r o g r a m t o p r o v i d e 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
e x p e n d i t u r e p l a n . C o m m e r c i a l p a p e r p r o c e e d s h a v e b e e n u s e d t o f i n a n c e 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 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 , a s w e l l a s l o c a l
s t r e e t s a n d r o a d s p r o j e c t s i n t h e c i t i e s o f B l y t h e a n d I n d i o . T h e C o m m i s s i o n
r e f i n a n c e d $ 1 1 0 , 0 0 5 , 0 0 0 a n d $ 5 3 , 7 1 6 , 0 0 0 o f 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
n o t e s i n c o n n e c t i o n w i t h t h e 2 0 0 8 a n d 2 0 0 9 s a l e s t a x b o n d i s s u a n c e s ,
r e s p e c t i v e l y . I n F e b r u a r y 2 0 1 0 , 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 w a s r e d u c e d t o
$ 1 2 0 m i l l i o n u p o n t h e e x t e n s i o n o f t h e s t a n d b y l e t t e r o f c r e d i t t h a t s u p p o r t s t h e
p r o g r a m a s a r e s u l t o f v a r i o u s c o n s i d e r a t i o n s .
C u r r e n t l y , t h e C o m m i s s i o n h a s $ 8 3 , 2 8 4 , 0 0 0 i n 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
n o t e s a n d w i l l i s s u e a p p r o x i m a t e l y $ 2 0 m i l l i o n i n a d d i t i o n a l c o m m e r c i a l p a p e r n o t e s
i n S e p t e m b e r 2 0 1 0 , t o c o n t i n u e f i n a n c i n g c e r t a i n 2 0 0 9 M e a s u r e A h i g h w a y
p r o j e c t s . A c c o r d i n g l y , t h e r e i s l i m i t e d c a p a c i t y i n 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 t o
c o m m i t t o f u n d i n g f u t u r e 2 0 0 9 M e a s u r e A p r o j e c t e x p e n d i t u r e s . T h e F Y 2 0 1 0 / 1 1
b u d g e t i n c l u d e d $ 1 8 5 m i l l i o n i n p r o c e e d s f r o m a d d i t i o n a l c o m m e r c i a l p a p e r a n d
s a l e s t a x r e v e n u e b o n d s i s s u a n c e s p r i m a r i l y t o r e f i n a n c e $ 8 3 . 3 m i l l i o n o f
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 n o t e s a n d p r o v i d e f u n d s f o r p r o j e c t s .
A g e n d a I t e m 8
2 2
Plan of Finance
Based on this need for additional financing capacity and additional funds to finance
2009 Measure A project costs, staff has prepared a preliminary plan of finance
with the assistance of its financing team to issue approximately $135 to
$150 million of sales tax revenue bonds (2010 Bonds) to fund 2009 Measure A
projects; refinance all or a portion of the outstanding commercial paper; establish a
reserve fund; and pay costs of issuance of the 2010 Bonds. The combination of
the commercial paper program maximum debt capacity of $120 million, the
outstanding 2009 Bonds, and the proposed 2010 Bonds will not exceed the
$500 million debt limitation specified in the 2009 Measure A.
The 2010 Bonds are proposed to be issued as fixed rate, long-term sales tax
revenue bonds with a 20-year maturity; however, the financing team is considering
the possibility of a longer maturity through the expiration of the 2009 Measure A in
June 2039. The bonds will be repaid solely from 2009 Measure A sales tax
receipts and may be issued as tax-exempt, taxable, or a hybrid structure. The
taxable bonds would be issued as part of the Build America Bonds (BABs) program
established under the American Recovery and Reinvestment Act of 2009.
The policy goal of the BABs program was to provide municipalities a potentially
more cost-effective financing alternative than tax-exempt bonds as a result of a
35% issuer subsidy on the bond interest rate. Due to the strength in the taxable
debt market and low U.S. Treasury benchmark rates, there is a larger pool of
investors and tax-exempt investors seeking to diversify. The current legislation for
BABs expires in December 2010, and an extension of the BABs program at a lower
subsidy rate is pending in Congress.
The financing team is continuously monitoring the BABs market as the relative
economic benefit/cost of BABs changes daily. Staff will make a presentation at the
meeting regarding the debt structuring options that are being analyzed in order to
obtain direction from the Commission regarding the plan of finance.
The financing team that has participated in the development of this proposed plan
of finance is similar to the team for the 2009 Bond Issuance, and includes the
following key members:
• Financial Advisor - Fieldman, Rolapp & Associates;
• Bond Counsel - Orrick Herrington & Sutcliffe LLP;
• Disclosure Counsel - Fulbright & Jaworski LLP;
• General Counsel - Best, Best & Krieger LLP; and
• Underwriters - Barclays Capital Inc. and E.J. De La Rosa & Co. Inc.
Agenda Item 8
•
23
"
"
A r r a n g e m e n t s h a v e b e e n m a d e t o p r e s e n t t h i s p l a n o f f i n a n c e t o t h e r a t i n g
a g e n c i e s . C h a i r B o b B u s t e r , F i r s t V i c e - C h a i r G r e g P e t t i s , 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 , 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 , T o l l P r o j e c t s D i r e c t o r
M i c h a e l B l o m q u i s t , a n d c e r t a i n m e m b e r s o f t h e f i n a n c e t e a m w i l l p a r t i c i p a t e i n
t h e s e p r e s e n t a t i o n s t o c o n f i r m t h e s t r o n g c r e d i t r a t i n g s o n t h e C o m m i s s i o n ' s
o u t s t a n d i n g b o n d s a n d t o s e e k r a t i n g s o n t h e 2 0 1 0 B o n d s . M e e t i n g s w i t h
S t a n d a r d & P o o r ' s , F i t c h R a t i n g s , a n d M o o d y ' s I n v e s t o r s S e r v i c e a r e s c h e d u l e d o n
S e p t e m b e r 2 7 - 2 8 , 2 0 1 0 i n N e w Y o r k . C r e d i t r a t i n g s a r e e x p e c t e d t o b e r e c e i v e d
b y m i d - O c t o b e r .
T h e p r o p o s e d d o c u m e n t s f o r t h i s t r a n s a c t i o n w i l l c o n t i n u e t o b e r e v i s e d f o r t h e
f i n a l d e b t s t r u c t u r i n g a n d a n y m a t t e r s t h a t a r i s e a s a r e s u l t o f t h e r a t i n g a g e n c y
m e e t i n g s . F i n a l d o c u m e n t s w i l l b e p r e s e n t e d f o r a p p r o v a l a t t h e O c t o b e r 1 3 , 2 0 1 0
C o m m i s s i o n m e e t i n g . D r a f t s o f t h e d o c u m e n t s f o r t h e p r o p o s e d 2 0 1 0 B o n d s a r e
i n c l u d e d a s a t t a c h m e n t s t o t h i s s t a f f r e p o r t f o r p r e l i m i n a r y c o n s i d e r a t i o n a n d
c o n s i s t o f t h e f o l l o w i n g :
" 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 ( d r a f t ) ;
" R e s o l u t i o n N o . 1 0 - 0 3 0 ( d r a f t ) 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 a n o t t o
e x c e e d a m o u n t o f s a l e s t a x r e v e n u e b o n d s ; 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 , a n d o f f i c i a l s t a t 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 w i t h t h i s
t r a n s a c t i o n ;
" T h i r d 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
( d r a f t ) r e g a r d i n g t h e t e r m s a n d c o n d i t i o n s o f t h e i s s u a n c e o f t h e
2 0 1 0 B o n d s ; a n d
" P u r c h a s e c o n t r a c t ( d r a f t ) 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 u n d e r w r i t e r s
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 1 0 B o n d s .
A s p a r t o f t h e a c t i o n t h a t i s e x p e c t e d t o o c c u r o n O c t o b e r 1 3 , 2 0 1 0 , t o a u t h o r i z e
t h e i s s u a n c e o f t h e 2 0 1 0 B o n d s , t h e C o m m i s s i o n w i l l 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 i n g 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 o f t h e 2 0 1 0 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 1 0 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 1 0 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 1 0 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 1 0 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 .
A g e n d a I t e m 8
2 4
The Commissioners serving on the Board as the governing body of the issuer of the
2010 Bonds are expected to read and be familiar with the information described in
the draft Preliminary Official Statement included with this staff report. The
Commissioners may employ the services of experts to take the lead in the drafting
and review of the Official Statement; however, the Commissioners have the duty
to review the information and bring to the attention of those responsible for the
preparation of the offering document any misstatements or omissions in the draft
and to ask questions if they are unclear about the information or their role. The
financing team will be available at the Budget and Implementation Committee and
Commission meetings to respond to the identification of any misstatements or
omissions or to such questions.
Anticipating Commission approval for this transaction on October 13, 2010, the
pricing activities related to the 2010 Bonds are expected to occur through
mid -November with a closing date of December 1, 2010 for the issuance of the
2010 Bonds.
Financial Information
In Fiscal Year Budget:
Yes
Year:
FY 2010/11
Amount:
S150,000,000 bond
Proceeds;
$1,500,000 costs
of issuance
Source of Funds:
Sales tax revenue bonds
Budget Adjustment:
No
GLA No.:
305 31 59102 $150,000,000 Estimated Bond Proceeds
305 31 96103 $ 1,500,000 Estimated Costs of Issuance
Fiscal Procedures Approved:
\14€4,„ f 4;vitturin
Date:
08/12/10
Attachments:
1) Preliminary Official Statement (Draft)
2) Resolution No. 10-030 (Draft)
3) Third Supplemental Indenture (Draft)
4) Purchase Contract (Draft)
Agenda Item 8
•
25
ATTACHMENT 1
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Fulbright & Jaworski L.L.P. — Draft 08/17/10
PRELIMINARY OFFICIAL STATEMENT DATED , 2010
NEW ISSUE —BOOK -ENTRY ONLY RATINGS•
Moody's: " "
S&P: ""
[DAC Logo] Fitch: " "
See "RATINGS" herein
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 2010 Series A Bonds is excluded from gross income
for federal income tax purposes under Section 103 of the Internal Revenue Code of 1986. In the further opinion of Bond
Counsel, interest on the 2010 Series A Bonds is not a specific preference item for purposes of the federal individual and
corporate alternative minimum taxes, nor is it included in adjusted current earnings when calculating corporate alternative
minimum taxable income. Interest on the 2010 Bonds is exempt from State of California personal income taxes. Bond
Counsel observes that interest on the 2010 Series B Bonds is not excluded from gross income for federal income tax
purposes. Bond Counsel expresses no opinion regarding any other federal or state tax consequences relating to the
ownership or disposition of, or the accrual or receipt of interest on, the 2010 Bonds. See "TAX MATTERS" herein.
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
Sales Tax Revenue Bonds
(Limited Tax Bonds)
2010 Series
$
RIVERSIDE COUNTY
TRANSPORTATION COMMISSION
Sales Tax Revenue Bonds
(Limited Tax Bonds)
2010 Series A
(Tax -Exempt)
$
RIVERSIDE COUNTY
TRANSPORTATION COMMISSION
Sales Tax Revenue Bonds
(Limited Tax Bonds)
2010 Series B
(Taxable Build America Bonds)
Dated: Date of Delivery Due: June 1, 20
The Sales Tax Revenue Bonds described above (individually referred to as the "2010 Series A Bonds" and the "2010
Series B Bonds," collectively referred to herein as the "2010 Bonds") are being issued by the Riverside County
Transportation Commission (the "Commission") pursuant to an Indenture, dated as of June 1, 2008, between the Commission
and U.S. Bank National Association, as trustee (the "Trustee"), as supplemented, including as supplemented by a Third
Supplemental Indenture, dated as of November 1, 2010, between the Commission and the Trustee (collectively, the
`Indenture"). The proceeds of the 2010 Bonds will be applied to (i) pay a portion of the costs of the Project (as defined
herein), (ii) retire S principal amount of the Commission's outstanding Commercial Paper Notes, and (iii) pay costs
of issuance of the 2010 Bonds.
Interest on the 2010 Bonds will be payable on each June 1 and December 1, commencing June 1, 2011. The 2010 Bonds
are initially being issued as fully registered bonds without coupons in the denominations of $5,000 and any integral multiple
thereof. The 2010 Bonds will be registered in the name of Cede & Co., as holder of the 2010 Bonds and nominee for The
Depository Trust Company ("DTC"). Purchasers will not receive physical certificates representing their interest in the 2010
Bonds purchased. The principal or redemption price of and interest on the 2010 Bonds are payable by wire transfer to DTC
which, in turn, is obligated to remit such principal, redemption price or interest to DTC Participants for subsequent
disbursement to the Beneficial Owners of the 2010 Bonds.
Preliminary, subject to change.
556326604
26
The 2010 Bonds will be subject to optional, extraordinary and mandatory sinking fund redemption as described herein. -
See "THE 2010 BONDS" herein.
The 2010 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 that became effective on July 1, 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.
The Commission expects to designate the 2010 Series B Bonds as `Build America Bonds" under the provisions of the
American Recovery and Reinvestment Act of 2009 (the "Stimulus Act"), the interest on which is not excluded from gross
income for federal income tax purposes but is exempt from State of California personal income taxes. The Commission
expects to receive a cash subsidy from the United States Treasury equal to 35% of the interest payable on such 2010 Series B
Bonds. The Commission is obligated to make all payments of principal of and interest on the 2010 Series B Bonds from the
sources described herein whether or not it receives cash subsidy payments pursuant to the Stimulus Act.
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
THAT OF THE COMMISSION TO THE EXTENT OF THE PLEDGE OF THE REVENUES, IS PLEDGED TO THE
PAYMENT OF THE PRINCIPAL OF OR INTEREST ON THE 2010 BONDS.
This cover page contains certain information for general reference only. It is not a summary of the security or
terms of this issue. Investors must read the entire Official Statement to obtain information essential to make an
informed investment decision with respect to the 2010 Bonds.
The 2010 Bonds are offered when, as and if issued and received by the Underwriters, subject to the approval of validity
by Orrick, Herrington & Sutcliffe LLP as Bond Counsel to the Commission, and certain other conditions. Certain legal
matters will be passed on for the Commission by Fulbright & Jaworski L.L.P., 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, a Professional Corporation, Newport Beach,
California. It is anticipated that the 2010 Bonds will be available for delivery through the book -entry facilities of DTC on or •
about November , 2010.
Barclays Capital De La Rosa & Co.
Dated: November , 2010
55632660.4
27
"
"
"
M a t u r i t y S c h e d u l e `
$ 2 0 1 0 S e r i e s A B o n d s
D u e P r i n c i p a l I n t e r e s t
J u n e 1 A m o u n t R a t e Y i e l d C U S I P t
% T e r m B o n d s d u e J u n e 1 , 2 0 _ Y i e l d : % ; C U S I P t :
$ 2 0 1 0 S e r i e s B B o n d s
% T e r m B o n d s d u e J u n e 1 , 2 0 Y i e l d : % ; C U S I P t :
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 .
C U S I P i s a r e g i s t e r e d t r a d e m a r k o f t h e A m e r i c a n B a n k e r s A s s o c i a t i o n . C U S 1 P d a t a o n t h e c o v e r h e r e o f a n d
h e r e i n i s p r o v i d e d b y C U S I P G l o b a l S e r v i c e s , m a n a g e d b y S t a n d a r d & P o o r ' s F i n a n c i a l S e r v i c e s L L C o n b e h a l f
o f T h e A m e r i c a n B a n k e r s A s s o c i a t i o n . T h i s d a t a i s n o t i n t e n d e d t o c r e a t e a d a t a b a s e a n d d o e s n o t s e r v e i n a n y
w a y a s a s u b s t i t u t e f o r t h e C U S I P S e r v i c e s . T h e C o m m i s s i o n , t h e F i n a n c i a l A d v i s o r a n d t h e U n d e r w r i t e r s a r e n o t
r e s p o n s i b l e f o r t h e s e l e c t i o n o r c o r r e c t n e s s o f t h e C U S I P n u m b e r s s e t f o r t h h e r e i n .
5 5 6 3 2 6 6 0 . 4
2 8
No dealer, salesman or any other person has been authorized by the Riverside County.
Transportation Commission (the "Commission') or the underwriters of the 2010 Bonds listed on the
cover page hereof (the "Underwriters") to give any information or to make any representations, other
than those contained in this Official Statement, and, if given or made, such other information or
representations must not be relied upon as having been authorized by the Commission or the
Underwriters.
This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy
nor shall there be any sale of the 2010 Bonds by a person in any jurisdiction in which it is unlawful for
such person to make such an offer, solicitation or sale. This Official Statement is not to be construed as
a contract with the purchasers of the 2010 Bonds. Neither the delivery of this Official Statement nor the
sale of any of the 2010 Bonds implies that the information herein is correct as of any time subsequent to
the date hereof. The information and expressions of opinion herein are subject to change without notice,
and neither the delivery of this Official Statement nor any sale made hereunder shall, under any
circumstances, create the implication that there has been no change in the matters described herein since
the date hereof. This Official Statement is submitted in connection with the sale of securities referred to
herein and may not be reproduced or be used, as a whole or in part, for any other purpose.
The information set forth herein has been obtained from the Commission and other sources
believed to be reliable. The information and expressions of opinions herein are subject to change
without notice and neither delivery of the Official Statement nor any sale made hereunder shall, under
any circumstances, create any implication that there has been no change in the affairs of the Commission
since the date hereof. All summaries contained herein of the Indenture (as defined herein) or other
documents are made subject to the provisions of such documents and do not purport to be complete
statements of any or all of such provisions. All statements made herein are made as of the date of this •
document by the Commission except statistical information or other statements where some other date is
indicated in the text.
The Underwriters have provided the following sentence for inclusion in this Official Statement.
The Underwriters have reviewed the information in this Official Statement in accordance with, and as
part of, their responsibilities to investors under the federal securities laws as applied to the facts and
circumstances of this transaction, but the Underwriters do not guarantee the accuracy or completeness of
such information.
IN CONNECTION WITH THIS OFFERING, THE UNDERWRITERS MAY OVERALLOT
OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF
THE 2010 BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL ON THE
OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY
TIME. THE UNDERWRITERS MAY OFFER AND SELL THE 2010 BONDS TO CERTAIN
DEALERS AND OTHERS AT PRICES LOWER THAN THE PUBLIC OFFERING PRICES STATED
ON THE INSIDE COVER PAGE HEREOF AND SUCH PUBLIC OFFERING PRICES MAY BE
CHANGED FROM TIME TO TIME BY THE UNDERWRITERS.
55632660.4
29
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.
55632660.4
30
e
31
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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
B o b B u s t e r , C h a i r
G r e g P e t t i s , 1 s t V i c e C h a i r J o h n J . B e n o i t , 2 n d V i c e C h a i r
M a r i o n A s h l e y B o b M a g e e
J e f f S t o n e W a l l a c e E d g e r t o n
J o h n F . T a v a g l i o n e B o n n i e F l i c k i n g e r
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 M a l c o l m M i l l e r
J o s e p h D e C o n i n c k R i c h a r d K e l l y
R a y Q u i n t o S t e v e P o u g n e t
M a r y C r a t o n D a r y l B u s c h
E d u a r d o G a r c i a R o n M e e p o s
K a r e n S p i e g e l S t e v e A d a m s
S c o t t M a t a s S t e v e D i M e m m o
R o b i n L o w e R o n R o b e r t s
P a t r i c k J . M u l l a n y S c o t t F a r n a m
G l e n n M i l l e r R a y W o l f e
T e r r y H e n d e r s o n
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 D i s c l o s u r e 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
5 5 6 3 2 6 6 0 . 4
F u l b r i g h t & J a w o r s k i L . L . P .
L o s A n g e l e s , 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
3 2
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"
3 3
"
T A B L E O F C O N T E N T S
P a g e
I N T R O D U C T I O N 1
G e n e r a l 1
A u t h o r i t y f o r I s s u a n c e 1
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 2
T h e 2 0 1 0 B o n d s 2
D e s i g n a t i o n o f 2 0 1 0 S e r i e s B B o n d s a s " B u i l d A m e r i c a B o n d s " 2
S e c u r i t y f o r t h e 2 0 1 0 B o n d s 2
N o R e s e r v e F u n d f o r t h e 2 0 1 0 B o n d s 3
C o n t i n u i n g D i s c l o s u r e 3
R e f e r e n c e s 3
T H E 2 0 1 0 B O N D S 3
G e n e r a l 3
D e s i g n a t i o n o f 2 0 1 0 S e r i e s B B o n d s a s ` B u i l d A m e r i c a B o n d s " 4
R e d e m p t i o n o f 2 0 1 0 S e r i e s A B o n d s 4
R e d e m p t i o n o f 2 0 1 0 S e r i e s B B o n d s 5
S e l e c t i o n o f 2 0 1 0 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 8
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 9
P L A N O F F I N A N C E 9
E S T I M A T E D S O U R C E S A N D U S E S O F P R O C E E D S 9
D E B T S E R V I C E S C H E D U L E 9
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 2 0 1 0 B O N D S 1 0
L i m i t e d O b l i g a t i o n 1 0
P l e d g e o f R e v e n u e s 1 0
R e v e n u e F u n d ; A l l o c a t i o n o f R e v e n u e s 1 1
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 1 4
O T H E R S A L E S T A X O B L I G A T I O N S 1 6
E x i s t i n g S w a p A g r e e m e n t s 1 6
S u b o r d i n a t e O b l i g a t i o n s 1 7
L i m i t a t i o n o n O u t s t a n d i n g S a l e s T a x O b l i g a t i o n s 1 8
T H E S A L E S T A X 1 8
G e n e r a l 1 8
C o l l e c t i o n o f S a l e s T a x R e v e n u e s 1 9
H i s t o r i c a l S a l e s T a x R e c e i p t s 2 0
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 2 1
G e n e r a l 2 1
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 2 2
T o l l R o a d B o n d s 2 3
5 5 6 3 2 6 6 0 . 4
3 4
TABLE OF CONTENTS
(continued)
Page
Commissioners 23
Executive Staff 23
RISK FACTORS 24
Economic Recession and Financial Crisis 24
Investments 24
No Acceleration Provision 24
The Sales Tax 25
Proposition 218 25
Further Initiatives 25
Loss of Tax Exemption 25
Build America Bonds 25
FINANCIAL STATEMENTS 26
LITIGATION 26
TAX MA 1'1'ERS 26
Tax Matters Relating to the 2010 Series A Bonds 27
Tax Matters Relating to the 2010 Series B Bonds 29
CERTAIN LEGAL MATTERS 32
RATINGS 32
UNDERWRITING 33
FINANCIAL ADVISOR 33
CONTINUING DISCLOSURE 33
MISCELLANEOUS 34
APPENDIX A -
APPENDIX B -
APPENDIX C -
APPENDIX D -
APPENDIX E -
APPENDIX F -
55632660.4
- Commission Audited Financial Statements For Fiscal Year
Ended June 30, 2010 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 Agreement F-1
11
35
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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 1 0 S e r i e s
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 )
2 0 1 0 S e r i e s A
( T a x - E x e m p t )
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 )
2 0 1 0 S e r i e s B
( T a x a b l e B u i l d A m e r i c a B o n d s )
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 1 0 S e r i e s A
( T a x - E x e m p t ) ( t h e " 2 0 1 0 S e r i e s A B o n d s " ) a n d $ * 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 1 0
S e r i e s B ( T a x a b l e B u i l d A m e r i c a B o n d s ) ( t h e " 2 0 1 0 S e r i e s B B o n d s " a n d , t o g e t h e r w i t h t h e
2 0 1 0 S e r i e s A B o n d s , t h e " 2 0 1 0 B o n d s " ) . A s u s e d h e r e i n , t h e t e r n " 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 2 0 1 0 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 ( a s d e f i n e d b e l o w ) .
A u t h o r i t y f o r I s s u a n c e
T h e 2 0 1 0 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 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 " ) 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 d 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 " ) , a s s u p p l e m e n t e d b y a 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 S e c o n d 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
O c t o b e r 1 , 2 0 0 9 ( t h e " S e c o n d S u p p l e m e n t a l I n d e n t u r e " ) a n d a T h i r d 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 N o v e m b e r 1 , 2 0 1 0 ( t h e " " T h i r d 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 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 S e c o n d S u p p l e m e n t a l I n d e n t u r e , t h e
" I n d e n t u r e " ) , e a c h 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 , a s t r u s t e e ( t h e
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 .
5 5 6 3 2 6 6 0 . 4 j
3 6
"Trustee"). All capitalized terms used and not otherwise defined herein shall have the meanings
assigned to such terms in "APPENDIX C — SUMMARY OF CERTAIN PROVISIONS OF THE
INDENTURE" or in the Indenture.
Purpose and Application of Proceeds
The proceeds of the 2010 Bonds will be applied to (i) pay a portion of the costs of the
Project (as defined herein), (ii) retire $ principal amount of the Commission's
outstanding Commercial Paper Notes, and (iii) pay costs of issuance of the 2010 Bonds. See
"PLAN OF FINANCE" and "ESTIMATED SOURCES AND USES OF PROCEEDS" herein.
The 2010 Bonds
Interest on the 2010 Bonds will be payable on each June 1 and December 1, commencing
June 1, 2011. The 2010 Bonds are initially being issued as fully registered bonds without
coupons in the denominations of $5,000 and any integral multiple thereof. The 2010 Bonds will
be registered in the name of Cede & Co., as holder of the 2010 Bonds and nominee for The
Depository Trust Company ("DTC"). Purchasers will not receive physical certificates
representing their interest in the 2010 Bonds purchased.
The 2010 Bonds will be subject to optional, extraordinary and mandatory sinking fund
redemption. See "THE 2010 BONDS — Redemption of 2010 Series A Bonds" and "—
Redemption of 2010 Series B Bonds" herein.
Designation of 2010 Series B Bonds as "Build America Bonds"
The Commission expects to designate the 2010 Series B Bonds as "Build America
Bonds" under the provisions of the American Recovery and Reinvestment Act of 2009 (the
"Stimulus Act"), the interest on which is not excluded from gross income for federal income tax
purposes but is exempt from State of California personal income taxes. The Commission
expects to receive a cash subsidy from the United States Treasury ("Federal Subsidy") equal to
35% of the interest payable on the 2010 Series B Bonds. The Commission will covenant for the
benefit of the Holders of the 2010 Series B Bonds to comply with any conditions to receive the
cash subsidy or to maintain the Commission's right to retain or receive future subsidy payments
in respect of the 2010 Series B Bonds. The Commission is obligated to make all payments of
principal of and interest on the 2010 Series B Bonds from Revenues (as defined below) whether
or not it receives cash subsidy payments pursuant to the Stimulus Act.
Security for the 2010 Bonds
The 2010 Bonds are limited obligations of the Commission payable from and Secured by
certain revenues (the "Revenues") pledged under the Indenture, including a pledge of revenues
(the "Sales Tax Revenues") derived from a '/z-cent sales tax that became effective on July 1,
2009 (the "Sales Tax"), imposed in the County 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
55632660.4 2
•
•
•
37
"
T a x w a s a p p r o v e d b y m o r e t h a n a t w o - t h i r d s v o t e o f t h e e l e c t o r a t e o f t h e C o u n t y o n
N o v e m b e r 5 , 2 0 0 2 a n d i s s c h e d u l e d t o e x p i r e o n J u n e 3 0 , 2 0 3 9 .
N E I T H E R T H E F A I T H A N D C R E D I T N O R T H E T A X I N G P O W E R 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 S T A T E O F C A L I F O R N I 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 O R P U B L I C A G E N C Y T H E R E O F , O T H E R T H A N T H E C O M M I S S I O N T O
T H E E X T E N T O F T H E P L E D G E O F T H E R E V E N U E S , I S P L E D G E D T O T H E P A Y M E N T
O F T H E 2 0 1 0 B O N D S .
N o R e s e r v e F u n d f o r t h e 2 0 1 0 B o n d s
T h e C o m m i s s i o n i s n o t f u n d i n g a r e s e r v e f o r t h e 2 0 1 0 B o n d s . T h e C o m m i s s i o n h a s
f u n d e d a r e s e r v e f o r i t s $ 1 8 5 , 0 0 0 , 0 0 0 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 9
S e r i e s A , 2 0 0 9 S e r i e s B a n d 2 0 0 9 S e r i e s C ( c o l l e c t i v e l y , t h e " 2 0 0 9 B o n d s " ) . S u c h r e s e r v e i s n o t
a v a i l a b l e t o p a y d e b t s e r v i c e o n t h e 2 0 1 0 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 w i l l c o v e n a n t f o r t h e b e n e f i t o f t h e b e n e f i c i a l o w n e r s o f t h e 2 0 1 0 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 a n d
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 o 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 " M S R B " ) p u r s u a n t t o 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 ( 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 " ) . T h e s e c o v e n a n t s a r e b e i n g m a d e i n o r d e r t o a s s i s t t h e
U n d e r w r i t e r s o f t h e 2 0 1 0 B o n d s i n c o m p l y i n g w i t h R u l e 1 5 c 2 - 1 2 ( t h e " R u l e " ) o f t h e U . 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 ( " S E C " ) p r o m u l g a t e d 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 a m e n d e d . S e e " 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 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 n o t , w i t h i n t h e p a s t f i v e y e a r s , f a i l e d t o
c o m p l y i n a l l m a t e r i a l r e s p e c t s w i t h a n y p r e v i o u s c o n t i n u i n g d i s c l o s u r e u n d e r t a k i n g p u r s u a n t t o
t h e R u l e t o p r o v i d e a n n u a l r e p o r t s o r n o t i c e s o f m a t e r i a l e v e n t s .
R e f e r e n c e s
T h e d e s c r i p t i o n s a n d s u m m a r i e s o f t h e I n d e n t u r e a n d v a r i o u s o t h e r d o c u m e n t s h e r e i n a f t e r
s e t f o r t h d o n o t p u r p o r t t o b e c o m p r e h e n s i v e o r d e f i n i t i v e , a n d r e f e r e n c e i s m a d e t o e a c h s u c h
d o c u m e n t f o r t h e c o m p l e t e d e t a i l s o f a l l t e r m s a n d c o n d i t i o n s . A l l s t a t e m e n t s h e r e i n a r e
q u a l i f i e d i n t h e i r e n t i r e t y b y r e f e r e n c e t o e a c h s u c h d o c u m e n t , c o p i e s o f w h i c h a r e a v a i l a b l e f o r
i n s p e c t i o n a t t h e o f f i c e s o f t h e C o m m i s s i o n .
T H E 2 0 1 0 B O N D S
G e n e r a l
I n t e r e s t o n t h e 2 0 1 0 B o n d s w i l l b e p a y a b l e o n e a c h J u n e 1 a n d D e c e m b e r I , c o m m e n c i n g
J u n e 1 , 2 0 1 1 . 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 2 0 1 0 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 . " 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 2 0 1 0 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 2 0 1 0 B O N D S , " i s
5 5 6 3 2 6 6 0 . 4 3
3 8
subject in its entirety to the provisions described in "APPENDIX D — BOOK -ENTRY
SYSTEM" while the 2010 Bonds are in the book -entry only system.
The 2010 Bonds will be subject to optional and mandatory sinking fund redemption as.
described herein. See "THE 2010 BONDS — Redemption of 2010 Series A Bonds" and "—
Redemption of 2010 Series B Bonds" herein.
Designation of 2010 Series B Bonds as "Build America Bonds"
The Commission is issuing the 2010 Series B Bonds as taxable bonds, and expects to
designate the 2010 Series B Bonds as `Build America Bonds" under section 54AA(d) of the
Internal Revenue Code of 1986 (the "Code") and as "qualified Build America Bonds" (Direct
Subsidy) under section 54AA(g) of the Code. In connection with the issuance of the 2010 Series
B Bonds, and as permitted by the Stimulus Act, the Commission will elect (which election is
irrevocable pursuant to the provisions of the Stimulus Act) for the Trustee to receive directly
from the United States Department of the Treasury on or about each interest payment date for the
2010 Series B Bonds a Federal Subsidy payment equal to 35% of the taxable interest it pays on
the 2010 Series B Bonds to the Holders thereof. The Federal Subsidy payment does not
constitute a full faith and credit guarantee of the United States Government, but is required to be
paid by the United States Treasury under the Stimulus Act. If the Commission fails to comply
with the conditions to receiving the Federal Subsidy payments throughout the term of the 2010
Series B Bonds, it may no longer receive the Federal Subsidy payments and could be subject to a
claim for the return of previously received Federal Subsidy payments. The Commission will
covenant for the benefit of the Holders of the 2010 Series B Bonds to comply with any
conditions to receive the Federal Subsidy payments or to maintain the Commission's right to
retain or receive future Federal Subsidy payments in respect of the 2010 Series B Bonds. The
Commission is obligated to make all payments of principal of and interest on the 2010 Series B
Bonds from Revenues whether or not it receives Federal Subsidy payments pursuant to the
Stimulus Act.
Redemption of 2010 Series A Bonds'
Optional Redemption. The 2010 Series A Bonds maturing on or before June 1, 20
shall not be subject to redemption prior to their respective stated maturities. The 2010 Series A
Bonds maturing on or after June 1, 20 shall be subject to redemption prior to their respective
stated maturities, at the option of the Commission, from any source of available funds, as a
whole or in part, on any date on or after June 1, 20_ at the principal amount of 2010 Series A
Bonds called for redemption plus accrued interest to the date fixed for redemption, without
premium.
Selection of 2010 Series A Bonds for Optional Redemption. The Commission shall
designate which maturities of any 2010 Series A Bonds are to be called for optional redemption
pursuant to the Indenture. If less than all 2010 Series A Bonds maturing by their terms on any
one date are to be redeemed at any one time, the Trustee shall select the 2010 Series A Bonds of
such maturity date to be redeemed in any manner that it deems appropriate and fair and shall
' Preliminary, subject to change.
55632660.4 4
39
•
"
"
"
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 1 0 S e r i e s A 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 1 0 S e r i e s A 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 . " A u t h o r i z e d D e n o m i n a t i o n " m e a n s , w i t h r e s p e c t t o t h e 2 0 1 0 B o n d s , .
$ 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 . I n t h e e v e n t 2 0 1 0 S e r i e s A T e r m B o n d s a r e d e s i g n a t e d
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 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 l l o c a t e d t o s u c h r e d e m p t i o n .
S u f f i c i e n t F u n d s R e q u i r e d f o r O p t i o n a l R e d e m p t i o n . A n y o p t i o n a l r e d e m p t i o n o f 2 0 1 0
S e r i e s A B o n d s a n d n o t i c e t h e r e o f s h a l l b e c o n d i t i o n a l a n d r e s c i n d e d a n d c a n c e l l e d i f f o r a n y
r e a s o n o n 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 m o n e y s a r e n o t a v a i l a b l e i n t h e R e d e m p t i o n F u n d o r
o t h e r w i s e h e l d i n t r u s t f o r s u c h p u r p o s 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 i n f u l l o n s a i d d a t e t h e
p r i n c i p a l o f , i n t e r e s t , a n d a n y p r e m i u m d u e o n t h e 2 0 1 0 S e r i e s A B o n d s c a l l e d f o r r e d e m p t i o n .
M a n d a t o r y R e d e m p t i o n o f t h e 2 0 1 0 S e r i e s A 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 . T h e 2 0 1 0 S e r i e s A B o n d s m a t u r i n g o n J u n e 1 , 2 0 _ s h a l l a l s o b e s u b j e c t t o
m a n d a t o r y r e d e m p t i o n p r i o r t o t h e i r r e s p e c t i v e s t a t e d m a t u r i t i e s , i n p a r t , b y l o t , 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 o n e a c h J u n e 1 a 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 i s d u e , i n t h e
p r i n c i p a l a m o u n t e q u a l t o 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 d u e o n s u c h d a t e a n 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 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 b u t u n p a i d i n t e r e s t
t o t h e r e d e m p t i o n d a t e , w i t h o u t p r e m i u m .
R e d e m p t i o n D a t e M a n d a t o r y S i n k i n g R e d e m p t i o n D a t e M a n d a t o r y S i n k i n g
( J u n e 1 ) A c c o u n t P a y m e n t ( J u n e 1 ) A c c o u n t P a y m e n t
t F i n a l M a t u r i t y .
R e d e m p t i o n o f 2 0 1 0 S e r i e s B B o n d s *
O p t i o n a l R e d e m p t i o n . T h e 2 0 1 0 S e r i e s B B o n d s o f e a c h m a t u r i t y 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 r e s p e c t i v e s t a t e d m a t u r i t y d a t e 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 , f r o m
a n y s o u r c e o f a v a i l a b l e f u n d s , a s a w h o l e o r i n p a r t b y l o 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 f $ 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 , o n a n y d a t e 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 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 2 0 1 0 S e r i e s B B o n d s t o b e r e d e e m e d p l u s t h e M a k e - W h o l e P r e m i u m ,
t o g e t h e r w i t h 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 f i x e d f o r r e d e m p t i o n .
" M a k e - W h o l e P r e m i u m " m e a n s , w i t h r e s p e c t t o a n y 2 0 1 0 S e r i e s B B o n d t o b e r e d e e m e d ,
a n a m o u n t c a l c u l a t e d b y a n I n d e p e n d e n t B a n k i n g I n s t i t u t i o n e q u a l t o t h e p o s i t i v e d i f f e r e n c e , i f
a n y , b e t w e e 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 .
5 5 6 3 2 6 6 0 . 4 5
4 0
(I)
redemption of
The sum of the present values, calculated as of the date fixed for
(A) Each interest payment that, but for the redemption, would have.
been payable on the 2010.Series B Bond or portion thereof being redeemed on each regularly
scheduled interest payment date occurring after the date fixed for redemption through the
maturity date of such 2010 Series B Bond (excluding any accrued interest for the period prior to
the date fixed for redemption); provided, that if the date fixed for redemption is not a regularly
scheduled interest payment date with respect to such 2010 Series B Bond, the amount of the next
regularly scheduled interest payment will be reduced by the amount of interest accrued on such
2010 Series B Bond to the date fixed for redemption; plus
(B) The principal amount that, but for such redemption, would have
been payable on the maturity date of the 2010 Series B Bond or portion thereof being redeemed;
minus
(2) The principal amount of the 2010 Series B Bond or portion thereof being
redeemed.
The present values of the interest and principal payments referred to in (1) above will be
determined by discounting the amount of each such interest and principal payment from the date
that each such payment would have been payable but for the redemption to the date fixed for
redemption on a semiannual basis (assuming a 360-day year consisting of twelve (12) 30-day
months) at a discount rate equal to the Comparable Treasury Yield, plus ( (U)
basis points.
"Comparable Treasury Yield" means the yield which represents the weekly average yield
to maturity for the preceding week appearing in the most recently published statistical release
designated "H.15(519) Selected Interest Rates" under the heading "Treasury Constant
Maturities," or any successor publication selected by the Independent Banking Institution that is
published weekly by the Board of Governors of the Federal Reserve System and that establishes
yields on actively traded United States Treasury securities adjusted to constant maturity, for the
maturity corresponding to the remaining term to maturity of the 2010 Series B Bond being
redeemed. The Comparable Treasury Yield will be determined as of the third business day
immediately preceding the applicable date fixed for redemption. If the H.15(519) statistical
release sets forth a weekly average yield for United States Treasury securities that have a
constant maturity that is the same as the remaining term to maturity of the 2010 Series B Bond
being redeemed, then the Comparable Treasury Yield will be equal to such weekly average yield.
In all other cases, the Comparable Treasury Yield will be calculated by interpolation on a
straight-line basis, between the weekly average yields on the United States Treasury, securities
that have a constant maturity (i) closest to and greater than the remaining term to maturity of the
2010 Series B Bond being redeemed; and (ii) closest to and less than the remaining term to
maturity of the 2010 Series B Bond being redeemed. Any weekly average yields calculated by
interpolation will be rounded to the nearest 1/100th of 1%, with any figure of 1/200th of 1% or
above being rounded upward.
55632660.4 6
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I f , a n d o n l y i f , w e e k l y a v e r a g e y i e l d s f o r U n i t e d S t a t e s T r e a s u r y s e c u r i t i e s f o r t h e
p r e c e d i n g w e e k a r e n o t a v a i l a b l e i n t h e H . 1 5 ( 5 1 9 ) s t a t i s t i c a l r e l e a s e o r a n y s u c c e s s o r p u b l i c a t i o n ,
t h e n t h e C o m p a r a b l e T r e a s u r y Y i e l d w i l l b e t h e r a t e o f i n t e r e s t p e r a n n u m e q u a l t o t h e
s e m i a n n u a l e q u i v a l e n t y i e l d t o m a t u r i t y o f t h e C o m p a r a b l e T r e a s u r y I s s u e ( e x p r e s s e d a s a .
p e r c e n t a g e o f i t s p r i n c i p a l a m o u n t ) a t t h e C o m p a r a b l e T r e a s u r y P r i c e a s o f 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 .
" C o m p a r a b l e T r e a s u r y I s s u e " m e a n s t h e U n i t e d S t a t e s T r e a s u r y s e c u r i t y s e l e c t e d b y t h e
I n d e p e n d e n t B a n k i n g I n s t i t u t i o n a s h a v i n g a m a t u r i t y c o m p a r a b l e t o t h e r e m a i n i n g t e r m t o
m a t u r i t y o f t h e 2 0 1 0 S e r i e s B B o n d b e i n g r e d e e m e d t h a t w o u l d b e u t i l i z e d , a t t h e t i m e o f
s e l e c t i o n a n d i n a c c o r d a n c e w i t h c u s t o m a r y f i n a n c i a l p r a c t i c e , i n p r i c i n g n e w i s s u e s o f c o r p o r a t e
d e b t s e c u r i t i e s o f c o m p a r a b l e m a t u r i t y t o t h e r e m a i n i n g t e r m t o m a t u r i t y o f t h e 2 0 1 0 S e r i e s B
B o n d b e i n g r e d e e m e d .
" I n d e p e n d e n t B a n k i n g I n s t i t u t i o n " m e a n s a n i n v e s t m e n t b a n k i n g i n s t i t u t i o n o f n a t i o n a l
s t a n d i n g w h i c h i s a p r i m a r y U n i t e d S t a t e s g o v e r n m e n t s e c u r i t i e s d e a l e r i n t h e C i t y o f N e w Y o r k
d e s i g n a t e d b y t h e C o m m i s s i o n ( w h i c h m a y b e t h e u n d e r w r i t e r s o f t h e 2 0 1 0 S e r i e s B B o n d s ) . I f
t h e C o m m i s s i o n f a i l s t o a p p o i n t a n I n d e p e n d e n t B a n k i n g I n s t i t u t i o n a t l e a s t 4 5 d a y s 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 , o r i f t h e I n d e p e n d e n t B a n k i n g I n s t i t u t i o n a p p o i n t e d b y t h e
C o m m i s s i o n i s u n w i l l i n g o r u n a b l e t o d e t e r m i n e t h e C o m p a r a b l e T r e a s u r y Y i e l d , t h e
C o m p a r a b l e T r e a s u r y Y i e l d w i l l b e d e t e r m i n e d b y a n I n d e p e n d e n t B a n k i n g I n s t i t u t i o n
d e s i g n a t e d b y t h e T r u s t e e , a s P a y i n g A g e n t .
" C o m p a r a b l e T r e a s u r y 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 d a t e o n w h i c h a 2 0 1 0 S e r i e s B
B o n d o r p o r t i o n t h e r e o f i s b e i n g r e d e e m e d , e i t h e r ( a ) t h e a v e r a g e o f f i v e R e f e r e n c e T r e a s u r y
D e a l e r q u o t a t i o n s f o r 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 , a f t e r e x c l u d i n g t h e h i g h e s t a n d l o w e s t s u c h
q u o t a t i o n s , a n d ( b ) i f t h e I n d e p e n d e n t B a n k i n g I n s t i t u t i o n i s u n a b l e t o o b t a i n f i v e s u c h
q u o t a t i o n s , t h e a v e r a g e o f t h e q u o t a t i o n s t h a t a r e o b t a i n e d . T h e q u o t a t i o n s w i l l b e t h e a v e r a g e ,
a s d e t e r m i n e d b y t h e I n d e p e n d e n t B a n k i n g I n s t i t u t i o n , o f t h e b i d a n d a s k e d p r i c e s f o r t h e
C o m p a r a b l e T r e a s u r y I s s u e ( e x p r e s s e d i n e a c h c a s e a s a p e r c e n t a g e o f p r i n c i p a l a m o u n t ) q u o t e d
i n w r i t i n g t o t h e I n d e p e n d e n t B a n k i n g I n s t i t u t i o n , a t 5 : 0 0 p . m . N e w Y o r k C i t y t i m e o n t h e t h i r d
b u s i n e s s d a y p r e c e d i n g 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 .
" R e f e r e n c e T r e a s u r y D e a l e r " m e a n s a p r i m a r y U n i t e d S t a t e s G o v e r n m e n t s e c u r i t i e s
d e a l e r i n t h e U n i t e d S t a t e s a p p o i n t e d b y t h e C o m m i s s i o n a n d r e a s o n a b l y a c c e p t a b l e t o t h e
I n d e p e n d e n t B a n k i n g I n s t i t u t i o n ( w h i c h m a y b e o n e o f t h e u n d e r w r i t e r s o f t h e 2 0 1 0 S e r i e s B
B o n d s ) . i f t h e C o m m i s s i o n f a i l s t o s e l e c t t h e R e f e r e n c e T r e a s u r y D e a l e r s w i t h i n a r e a s o n a b l e
p e r i o d o f t i m e , t h e T r u s t e e w i l l s e l e c t t h e R e f e r e n c e T r e a s u r y D e a l e r s i n c o n s u l t a t i o n w i t h t h e
C o m m i s s i o n .
E x t r a o r d i n a r y O p t i o n a l R e d e m p t i o n o f 2 0 1 0 S e r i e s B B o n d s . [ t o c o m e ]
S e l e c t i o n o f 2 0 1 0 S e r i e s B 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 . 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 a n y 2 0 1 0 S e r i e s B 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 t h e I n d e n t u r e . I f l e s s t h a n a l l 2 0 1 0 S e r i e s B 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 1 0 S e r i e s B 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 a p p r o p r i a t e a n d f a i r a n d s h a l l
5 5 6 3 2 6 6 0 . 4 7
4 2
promptly notify the Commission in writing of the numbers of the 2010 Series B Bonds so
selected for redemption. For purposes of such selection, 2010 Series B Bonds shall be deemed to
be composed of multiples of minimum Authorized Denominations and any such multiple may be
separately redeemed. In the event 2010 Series B Term Bonds are designated for redemption, the
Commission may designate the Mandatory Sinking Account Payments, or portions thereof, that
are to be reduced as allocated to such redemption.
Sufficient Funds Required for Optional Redemption. Any optional redemption of 2010
Series B Bonds and notice thereof may be conditional and rescinded and cancelled pursuant to
the provisions of the Indenture 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 2010
Series B Bonds called for redemption.
Mandatory Redemption of the 2010 Series B Bonds from Mandatory Sinking Account
Payments. The 2010 Series B Bonds maturing on June 1, 20 , shall also be subject to
mandatory redemption prior to their respective stated maturities, in part, by lot, from Mandatory
Sinking Account Payments on each June 1 a Mandatory Sinking Account Payment is due, in the
principal amount equal to the Mandatory Sinking Account Payment due on such date and at a
redemption price equal to 100% of the principal amount thereof, plus accrued but unpaid interest
to the redemption date, without premium. [add language for pro rata call if allowed by future
DTC procedures?]
Redemption Date Mandatory Sinking Redemption Date Mandatory Sinking
(June 1) Account Payment
t Final Maturity.
(June 1) Account Payment
Selection of 2010 Bonds for Mandatory Sinking Account Redemption
If less than all 2010 Bonds of any Series maturing by their terms on any one date are to
be redeemed at any one time with Mandatory Sinking Account Payments, the Trustee shall select
the 2010 Bonds of such maturity date to be redeemed by lot in any manner that it deems
appropriate, and the Trustee shall promptly notify the Commission in writing of the numbers of
the 2010 Bonds so selected for redemption. For purposes of such selection, 2010 Bonds of each
Series shall be deemed to be composed of multiples of minimum Authorized Denominations and
any such multiple may be separately redeemed.
55632660.4
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"
"
"
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 1 0 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 1 0 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 1 0 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 1 0 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 2 0 1 0 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 . [ A L L O W E D F O R B A B S 1
P L A N O F F I N A N C E
T h e p r o c e e d s o f t h e 2 0 1 0 B o n d s w i l l b e a p p l i e d t o ( i ) t o p a y a p o r t i o n o f t h e c o s t s o f t h e
P r o j e c t , ( i i ) r e t i r e $ 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 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 N o t e s , a n d ( i i i ) p a y c o s t s o f i s s u a n c e o f t h e 2 0 1 0 B o n d s . " P r o j e c t " m e a n s p r o j e c t s
a u t h o r i z e d t o b e f i n a n c e d w i t h t h e p r o c e e d s o f t h e 2 0 1 0 B o n d s o 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 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 . S e 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 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 " h e r e i n .
E S T I M A T E D S O U R C E S A N D U S E S O F 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 2 0 1 0 B o n d s a n d c e r t a i n o t h e r a m o u n t s a r e e x p e c t e d t o
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 r i g i n a l I s s u e D i s c o u n t / P r e m i u m
T o t a l S o u r c e s :
U s e s o f F u n d s :
D e p o s i t t o 2 0 1 0 B o n d s P r o j e c t F u n d
T r a n s f e r t o C o m m e r c i a l P a p e r N o t e s T r u s t e e
D e p o s i t t o 2 0 1 0 C o s t s o f I s s u a n c e F u n d ( l )
T o t a l U s e s :
2 0 1 0 S e r i e s A 2 0 1 0 S e r i e s B
B o n d s B o n d s
P 1 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 , f e e s a n d e x p e n s e 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 , t h e F i n a n c i a l A d v i s o r , t h e A u d i t o r , a n d o t h e r m i s c e l l a n e o u s
c o s t s o f i s s u a n c e .
D E B T S E R V I C E S C H E D U L E
F i s c a l 2 0 1 0 S e r i e s A B o n d s 2 0 1 0 S e r i e s B B o n d s
Y e a r A n n u a l
E n d i n g 2 0 0 9 F e d e r a l D e b t
J u n e 3 0 B o n d s P r i n c i p a l I n t e r e s t P r i n c i p a l I n t e r e s t S u b s i d y S e r v i c e
5 5 6 3 2 6 6 0 4 9
4 4
SECURITY AND SOURCES OF PAYMENT FOR THE 2010 BONDS
Limited Obligation
THE 2010 BONDS ARE LIMITED TAX OBLIGATIONS OF THE COMMISSION
PAYABLE SOLELY FROM REVENUES AS DEFINED AND PROVIDED IN THE
INDENTURE AND CERTAIN OTHER FUNDS PLEDGED UNDER THE INDENTURE.
THE COMMISSION IS NOT OBLIGATED TO PAY THE 2010 BONDS EXCEPT FROM
REVENUES AND THOSE CERTAIN OTHER FUNDS PLEDGED UNDER THE
INDENTURE. THE 2010 BONDS DO NOT CONSTITUTE A DEBT OR LIABILITY OF
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 IN THE INDENTURE) OF THE COMMISSION IS NOT PLEDGED, FOR
THE PAYMENT OF THE 2010 BONDS, THEIR INTEREST, OR ANY PREMIUM DUE
UPON REDEMPTION OF THE 2010 BONDS. THE 2010 BONDS ARE NOT SECURED BY
A LEGAL OR EQUITABLE 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.
Pledge of Revenues
All Revenues, consisting of Sales Tax Revenues and Swap Revenues, are irrevocably
pledged by the Commission to secure the punctual payment of the principal of, premium, if any,
and interest on the 2010 Bonds and any additional Series of Bonds issued under the Indenture
and all amounts owing on any Parity Obligations in accordance with their terms. The 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
Revenues constitutes a first lien to secure the Bonds and Parity Obligations. The pledge of
Revenues shall be irrevocable until all Bonds issued under the Indenture, including the 2010
Bonds, and all Parity Obligations are no longer Outstanding.
55632660.4
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i
The 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 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. For a discussion of Swap Revenues, see "OTHER SALES
TAX OBLIGATIONS — Existing Swap Agreements" 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
received and held in trust by the Trustee for the benefit of the Holders of the Bonds and any
Parity Obligations. The Trustee shall forthwith deposit all Sales Tax Revenues in the Revenue
Fund, maintained and held in trust by the Trustee, when and as such Sales Tax Revenues are
received by the Trustee. See "APPENDIX C — SUMMARY OF CERTAIN PROVISIONS OF
THE INDENTURE — Allocation of Sales Tax Revenues." Investment income on amounts held
by the Trustee (other than amounts held in the Rebate Fund or for which particular instructions
are provided) shall also be deposited in the Revenue Fund.
In each month while Bonds remain Outstanding, the Trustee is required to set aside
receipts of Sales Tax Revenues in the following respective funds, amounts and order of priority
(provided that deficiencies in any previously required deposit shall be made up prior to the
deposit to a fund subsequent in priority and further provided that set asides or transfers required
with respect to Parity Obligations, including certain regularly scheduled payments pursuant to
Interest Rate Swap Agreements that are payable on a parity with the 2010 Bonds, shall be made
on a parity basis, as provided in the Indenture):
1. Interest Fund. The Indenture requires the Trustee to make monthly
deposits in the Interest Fund in an amount equal to (a) one -sixth of the aggregate
half -yearly amount of interest becoming due and payable on Outstanding Current Interest
Bonds (other than Bonds constituting Variable Rate Indebtedness) during the ensuing
six-month period, plus (b) the aggregate amount of interest to accrue during that month
on Outstanding Variable Rate Indebtedness, calculated, if the actual rate of interest is not
known, at the interest rate specified in writing by the Commission, or if the Commission
has not specified an interest rate in writing, calculated at the maximum interest rate borne
by such Variable Rate Indebtedness during the month prior to the month of deposit plus
one hundred (100) basis points (provided, however, that the amount of such deposit into
the Interest Fund for any month may be reduced by the amount by which the deposit in
the prior month exceeded the actual amount of interest accrued and paid during that
month on said Outstanding Variable Rate Indebtedness and provided further that the
amount of such deposit into the Interest Fund for any month will be increased by the
amount by which the deposit in the prior month was less than the actual amount of
interest accruing during that month on said Outstanding Variable Rate Indebtedness). No
55632660.4
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deposit need be made into the Interest Fund if the amount contained therein is at least
equal to the interest to become due and payable on the Interest Payment Dates falling
within the next six (6) months upon all of the Outstanding Bonds issued under the
Indenture, and on June 1 and December 1 of each year any excess amounts in the Interest,
Fund not needed to pay interest on such date (and not held to pay interest on Bonds
having Interest Payment Dates other than June 1 and December 1) will be transferred to
the Commission (but excluding, in each case, any moneys on deposit in the Interest Fund
from the proceeds of any Series of Bonds or other source and reserved as capitalized
interest to pay interest on any future Interest Payment Dates following such Interest
Payment Dates). All Swap Revenues received with respect to Interest Rate Swap
Agreements that are Parity Obligations shall be deposited in the Interest Fund and
credited to the above -required deposits, and payments on such Interest Rate Swap
Agreements (other than fees and expenses and termination payments) shall be payable
from the Interest Fund and the above -required deposits shall be adjusted to include such
payments.
2. Principal Fund; Sinking Accounts. The Indenture also requires the
Trustee to make monthly deposits in the Principal Fund in an amount equal to at least
(a) one -sixth of the aggregate semiannual amount of principal and accreted value, if
applicable, becoming due and payable within the next six months on Outstanding Bonds
having semiannual maturity dates, plus (b) one -twelfth of the aggregate yearly amount of
principal, accreted value, if applicable, becoming due and payable within the next twelve
months on Outstanding Bonds having annual maturity dates, plus (c) one -sixth of the
aggregate of the Mandatory Sinking Account Payments to be paid during the next
six-month period into the respective Sinking Accounts for the Term Bonds of all Series
for which Sinking Accounts have been created and for which semiannual mandatory
redemption is required from said Sinking Accounts, plus (d) one -twelfth of the aggregate
of the Mandatory 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 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 are required to be set aside toward such principal to be so refunded or paid.
All of the aforesaid deposits made in connection with future Mandatory Sinking Account
Payments are to be made without priority of any payment into any one such Sinking
Account over any other such payment.
If the Sales Tax Revenues are not 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 will be applied on a Proportionate Basis and in such proportion as said
Serial Bonds and said Tenn Bonds shall bear to each other, after first deducting for such
purposes from said Term Bonds any of said Term Bonds required to be redeemed
55632660.4
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annually which will have been redeemed or purchased during the preceding 12-month
period and any of said Tenn Bonds required to be redeemed semiannually which will
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 will
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 are to 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 must be made into the Principal Fund as long as such fund holds (i)
moneys sufficient to pay the Bond Obligations of all then Outstanding Serial Bonds
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 is
required to 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 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) are required to be transferred to the Commission.
3. Bond Reserve Fund. The Indenture also requires the Trustee to make
deposits to the Bond Reserve Fund (including the 2010 Bonds Reserve Fund) as set forth
below. See "— 2010 Bonds Reserve Fund" below.
4. 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 to the Notes
Trustee in connection with the Commission's Commercial Paper Notes (Limited Tax
Bonds), Series A and Series B (the "Notes"). After the Notes Trustee has made the
required deposit of Revenues under the Subordinate Indenture, the Notes 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,
55632660.4
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48
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.
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 the 2010
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
on or prior to such payment date. The Commission has covenanted and agreed 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.
See "APPENDIX C — SUMMARY OF CERTAIN PROVISIONS OF THE
INDENTURE — Allocation of Sales Tax Revenues" and "— Definitions" for a more complete
discussion.
Additional Bonds and Parity Obligations
Under the Indenture, the Commission may issue other obligations payable in whole or in
part from Sales Tax Revenues, subject to the limitations of the Act and to the terms and
conditions contained in the Indenture.
Issuance of Additional Series of 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 the Indenture equally and ratably with the 2010 Bonds,
but only upon compliance by the Commission with the provisions of the Indenture, including the
conditions that:
(1) No Event of Default shall have occurred and then be continuing.
(2) The aggregate principal amount of Bonds issued pursuant to the Indenture
may not exceed any limitation imposed by the Act.
55632660.4
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"
( 3 ) 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 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 , 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 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 .
( 4 ) 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 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 ( 4 )
" 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 , o r ( i i )
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 .
I s s u a n c e o f P a r i t y 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 a l s o i s s u e 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 h a v e , w h e n i s s u e d , 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 , p r o v i d e d
t h a t t h e c o n d i t i o n s t o t h e i s s u a 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 s e t f o r t h i n t h e I n d e n t u r e a r e
s a t i s f i e d , i n c l u d i n g s a t i s f a c t i o n o f t h e c o v e r a g e t e s t d e s c r i b e d i n s u b s e c t i o n ( 4 ) a b o v e u n d e r t h e
c a p t i o n " 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 " ( u n l e s s s u c h P a r i t y O b l i g a t i o n s a r e b e i n g
i s s u e d f o r r e f u n d i n g p u r p o s e s , i n w h i c h c a s e t h e c o v e r a g e t e s t s h a l l n o t a p p l y ) .
A s d e f i n e d i n t h e I n d e n t u r e , " P a r i t y O b l i g a t i o n s " m e a n s 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 , t h e
E x i s t i n g 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 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 ) 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 i n c u r r 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 a n d
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 ) .
5 5 6 3 2 6 6 0 . 4
1 5
5 0
The Commission's obligation to make regularly scheduled payments under the Existing
Swap Agreements (as defined below) constitutes a Parity Obligation under the Indenture.
OTHER SALES TAX OBLIGATIONS
Existing Swap Agreements
The Commission has entered into the following interest rate swap agreements
(collectively, the "Existing Swap Agreements"), in a combined notional amount of $185,000,000
(subject to amortization), which Existing Swap Agreements have an effective .date of October 1,
2009 and expire on June 1, 2029, and are designed to cause the total interest obligation with
respect to the 2010 Bonds to accrue at a synthetic fixed rate:
(i)
An 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 (the "BofA Swap
Agreement"). BofA's current long-term unsubordinated ratings are "A+" by
Standard & Poor's Rating Service ("S&P"), "Aa3" by Moody's Investors Service
("Moody's") and "A+" by Fitch Ratings ("Fitch"). Such ratings reflect only the
views of such organizations and any desired explanation of the significance of
such ratings should be obtained from the rating agency furnishing the same.
(ii) An ISDA Master Agreement, dated as of September 24, 2008, between Deutsche
Bank AG, New York Branch ("DBAG") and the Commission, as supplemented
by the Schedule, dated as of September 24, 2008 and the confirmation of a
transaction entered into on September 24, 2008 between DBAG and the
Commission (the "DBAG Swap Agreement"). DBAG's current long-term
unsubordinated ratings are "A+" by S&P, "Aal" by Moody's and "AA" by
Fitch. Such ratings reflect only the views of such organizations and any desired
explanation of the significance of such ratings should be obtained from the rating
agency furnishing the same.
The Commission's obligation to make regularly scheduled payments to the swap
counterparties under the Existing 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 2010 Bonds,
and therefore such obligation constitutes a Parity Obligation under the Indenture. The
Commission's obligation to make any early termination payment under the Existing Swap
Agreements is secured by a pledge of Sales Tax Revenues subordinate to the pledge of Sales Tax
Revenues in favor of the 2010 Bonds, Parity Obligations and payment of principal of and interest
on Subordinate Obligations.
The BofA Swap Agreement is in the initial notional amount of $100,000,000, subject to
amortization as set forth therein. Pursuant to this agreement, BofA has agreed to pay the
Commission a floating rate equal to 67% of USDLIBOR (One Month) and the Commission has
agreed to pay BofA a fixed rate equal to 3.679%. The BofA Swap Agreement is subject to early
termination in the event that the unenhanced ratings on the 2010 Bonds issued by Moody's
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Investors Service ("Moody's") and Standard & Poor's Rating Service ("S&P") fall below
investment grade or are withdrawn or suspended; a reduction in the long-term unsubordinated
ratings of BofA below investment grade can also result in an early termination of the BofA Swap
Agreement. The Commission has the option of terminating the BofA Swap Agreement upon two
Business Days' notice provided it has sufficient funds to pay any early termination amount.
The DBAG Swap Agreement is in the initial notional amount of $85,000,000, subject to
amortization as set forth therein, which corresponds to the amortization of the 2010 Series A
Bonds. Pursuant to this agreement, DBAG has agreed to pay the Commission a floating rate
equal to 67% of USDLIBOR (One Month) and the Commission has agreed to pay DBAG a fixed
rate equal to 3.206%. The DBAG Swap Agreement is subject to early termination in the event
that the unenhanced ratings on the 2010 Bonds issued by Moody's and S&P fall below
investment grade or are withdrawn or suspended; a reduction in the unenhanced ratings of the
long-term unsecured unsubordinated debt of DBAG below investment grade can also result in an
early termination of the DBAG Swap Agreement. The Commission has the option of terminating
the DBAG Swap Agreement upon two Business Days' notice provided it has sufficient funds to
pay any early termination amount.
In the event of an early termination of one or both of the Existing Swap Agreements, a
termination payment will be payable by either the Commission or the swap counterparty
depending on the then current market value of the Existing Swap Agreement subject to
termination. Any such termination payment payable by the Commission could be substantial.
As of November 1, 2010, the value of the termination payment, if each of the Existing Swap
Agreements were terminated based on the mid -market swap curve and assuming functioning
markets was estimated by the Commission's financial advisor to be approximately $
million payable by the Commission. Any early termination payments are payable from Sales
Tax Revenues on a basis subordinate to the Bonds (including the 2010 Bonds).
Subordinate Obligations
The Commission may issue obligations ("Subordinate Obligations") payable out of Sales
Tax Revenues on a basis subordinate to the payment of the principal, premium, interest and
reserve fund requirements for the Bonds and all Parity Obligations, as the same become due and
payable. The Commission's Sales Tax Revenue Commercial Paper Notes (Limited Tax Bonds)
(the "Notes") and the credit agreements supporting the Notes constitute Subordinate Obligations
under the Indenture. The Commission's obligation to make early termination payments under the
Existing Swap Agreements is secured by a pledge of the Sales Tax Revenues subordinate to the
pledge in favor of the 2010 Bonds, Parity Obligations and payment of principal of and interest on
Subordinate Obligations.
As of November 1, 2010, there was $ principal amount of Notes outstanding of
an authorized $120,000,000 program. The program was initially established at a maximum of
$185,000,000 in principal amount and has been reduced to a maximum of $120,000,000 in
principal amount. 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. ("BofA"), pursuant to a
Reimbursement Agreement, dated as of March 1, 2005, as amended ("Reimbursement
Agreement"), by and between the Commission and BofA. The stated amount of the letter of
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credit may not exceed $121,500,000. The letter of credit expires March 29, 2012, unless
terminated earlier as provided in the Reimbursement Agreement. The Commission's obligation
to reimburse BofA for draws under the letter of credit to pay the principal of and interest on the
Notes is secured by a pledge of Sales Tax Revenues subordinate to the pledge in favor of the.
holders of the 2010 Bonds and on parity with the obligation to pay Note holders. If the
Commission is unable to extend or replace such letter of credit by its expiration date, the
Commission may refund any outstanding Notes and any related reimbursement obligations due
to BofA with the proceeds of an additional Series of Bonds. See "SECURITY AND SOURCES
OF PAYMENT FOR THE 2010 BONDS — Additional Bonds and Parity Obligations" herein.
Limitation on Outstanding Sales Tax Obligations
Under the Act, the Commission has the power to sell or issue, from time to time, on or
before the collection of taxes, bonds or other evidence of indebtedness, including but not limited
to capital appreciation bonds, in the aggregate principal amount at any one time outstanding of
not to exceed $500 million. Pursuant to Resolution No. 2010-255, the County has approved a
ballot measure for a special election to be conducted on November 2, 2010 that if approved
would increase such not to exceed amount from $500 million to $975 million. See "SECURITY
AND SOURCES OF PAYMENT FOR THE 2010 BONDS — Additional Bonds and Parity
Obligations" herein.
THE SALES TAX
General
The Act, among other things, authorizes the Commission to develop a countywide
consensus on a proposed transaction expenditure plan to be submitted to the voters as part of an
ordinance imposing a retail transactions and use tax in the County in accordance with the
provisions of the California Transactions and Use Tax Law (Revenue and Taxation Code
Section 7251, et seq.). In accordance with the Act, on November 5, 2002, more than two-thirds
of the voters of the County voting on the measure approved Measure "A," which authorized the
imposition of the Sales Tax in the County. The Sales Tax commenced on July 1, 2009 and will
be collected for a thirty-year period ending on June 30, 2039. The Sales Tax consists of a one-
half of one percent (1/2%) sales tax on the gross receipts of retailers from the sale of tangible
personal property sold in the County and a use tax at the same rate upon the storage, use or other
consumption in the County of such property purchased from any retailer for storage, use or other
consumption in the County, subject to certain limited exceptions described below. See
"RIVERSIDE COUNTY TRANSPORTATION COMMISSION — The Transportation
Expenditure Plan" herein.
The one-half of one percent sales tax imposed in the County for transportation purposes
and administered by the Commission, is in addition to an eight and one -quarter percent sales tax
levied statewide by the State of California (the "State"). 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
55632660.4
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"
"
a p p l y t o c a s e s w h e r e t h e s a l e o f t h e p r o p e r t y i s s u b j e c t t o t h e s a l e s t a x , t h e a p p l i c a t i o n o f t h e u s e
t a x g e n e r a l l y i s t o p u r c h a s e s m a d e o u t s i d e o f t h e S t a t e f o r u s e w i t h i n t h e S t a t e .
O n N o v e m b e r 8 , 1 9 8 8 , 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 a p p r o v e d 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 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 " P r i o r O r d i n a n c e " ) 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 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 o f o n e - h a l f o f o n e p e r c e n t e h % ) o f 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 s o f a l l
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 a t r e t a i l 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 ( t h e " 1 9 8 8
S a l e s T a x " ) . T h e 1 9 8 8 S a l e s T a x c e a s e d t o b e e f f e c t i v e o n J u n e 3 0 , 2 0 0 9 . T h e C o m m i s s i o n h a s
p r e v i o u s l y i s s u e d i n d e b t e d n e s s s e c u r e d b y t h e 1 9 8 8 S a l e s T a x , a n d a l l o u t s t a n d i n g p r i n c i p a l 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 i n d e b t e d n e s s h a s b e e n f u l l y p a i d o n o r b e f o r e J u n e 1 , 2 0 0 9 .
T h e S a l e s T a x i s g e n e r a l l y i m p o s e d u p o n t h e s a m e t r a n s a c t i o n s a n d i t e m s s u b j e c t t o t h e
s a l e s a n d u s e t a x l e v i e d s t a t e w i d e b y t h e S t a t e ( 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 t h e " S t a t e
S a l e s T a x " ) , w i t h g e n e r a l l y t h e s a m e e x c e p t i o n s . M a n y c a t e g o r i e s o f t r a n s a c t i o n s a r e e x e m p t
f r o m t h e S t a t e S a l e s T a x a n d t h e S a l e s T a x . T h e m o s t i m p o r t a n t o f t h e s e e x e m p t i o n s a r e : s a l e s
o f f o o d p r o d u c t s f o r h o m e c o n s u m p t i o n , p r e s c r i p t i o n m e d i c i n e , e d i b l e l i v e s t o c k a n d t h e i r f e e d ,
s e e d a n d f e r t i l i z e r u s e d i n r a i s i n g f o o d f o r h u m a n c o n s u m p t i o n , a n d g a s , e l e c t r i c i t y a n d w a t e r
w h e n d e l i v e r e d t o c o n s u m e r s t h r o u g h m a i n s , l i n e s a n d p i p e s . I n a d d i t i o n , " O c c a s i o n a l S a l e s "
( L e . , s a l e s o f p r o p e r t y n o t h e l d o r u s e d b y a s e l l e r i n t h e c o u r s e o f a c t i v i t i e s f o r w h i c h h e o r s h e i s
r e q u i r e d t o h o l d a s e l l e r ' s p e r m i t ) a r e g e n e r a l l y e x e m p t f r o m t h e S t a t e S a l e s T a x a n d f r o m t h e
S a l e s T a x ; h o w e v e r , t h e " O c c a s i o n a l S a l e s " e x e m p t i o n d o e s n o t a p p l y t o t h e s a l e o f a n e n t i r e
b u s i n e s s a n d o t h e r s a l e s o f m a c h i n e r y a n d e q u i p m e n t u s e d i n a b u s i n e s s . S a l e s o f p r o p e r t y t o b e
u s e d o u t s i d e t h e c o u n t y w h i c h a r e s h i p p e d t o a p o i n t o u t s i d e t h e c o u n t y , p u r s u a n t t o t h e c o n t r a c t
o f s a l e , b y d e l i v e r y t o s u c h p o i n t b y t h e r e t a i l e r , o r b y d e l i v e r y b y t h e r e t a i l e r t o a c a r r i e r f o r
s h i p m e n t t o a c o n s i g n e e , a t s u c h p o i n t , a r e e x e m p t f r o m t h e S t a t e S a l e s T a x a n d f r o m t h e S a l e s
T a x .
A c t i o n b y t h e S t a t e L e g i s l a t u r e o r b y v o t e r i n i t i a t i v e c o u l d c h a n g e t h e t r a n s a c t i o n s a n d
i t e m s u p o n w h i c h t h e S t a t e S a l e s T a x a n d t h e S a l e s T a x a r e i m p o s e d . S u c h c h a n g e s o r
a m e n d m e n t s c o u l d h a v e e i t h e r a n a d v e r s e o r b e n e f i c i a l e f f e c t o n S a l e s T a x R e v e n u e s . T h e
C o m m i s s i o n i s n o t c u r r e n t l y a w a r e o f a n y p r o p o s e d l e g i s l a t i v e c h a n g e w h i c h w o u l d h a v e a
m a t e r i a l a d v e r s e e f f e c t o n S a l e s T a x R e v e n u e s . S e e a l s o " R I S K F A C T O R S P r o p o s i t i o n 2 1 8 "
h e r e i n .
C o l l e c t i o n o f S a l e s T a x R e v e n u e s
C o l l e c t i o n o f t h e S a l e s T a x i s a d m i n i s t e r e d b y t h e B o a r d o f E q u a l i z a t i o n . T h e
C o m m i s s i o n a n d t h e B o a r d o f E q u a l i z a t i o n h a v e e n t e r e d i n t o a n 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 d i s t r i c t t r a n s a c t i o n s a n d u s e t a x e s t o a u t h o r i z e p a y m e n t o f 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 . T h e B o a r d o f E q u a l i z a t i o n , 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 t o i t s e l f , i s
r e q u i r e d t o r e m i t t h e b a l a n c e o f a m o u n t s r e c e i v e d f r o m t h e S a l e s T a x d i r e c t l y t o t h e T r u s t e e .
T h e T r u s t e e i s r e q u i r e d t o a p p l y t h e S a l e s T a x R e v e n u e s t o m a k e d e p o s i t s t o 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 u n d e r t h e I n d e n t u r e a n d t o t r a n s f e r t h e r e m a i n i n g a m o u n t s 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 i s s u i n g a n d p a y i n g a g e n t f o r t h e N o t e s ( t h e " I s s u i n g a n d P a y i n g
5 5 6 3 2 6 6 0 . 4
1 9
5 4
Agent"). See "SECURITY AND SOURCES OF PAYMENT FOR THE 2010 BONDS" herein.
The remaining unapplied Sales Tax Revenues, if any, are transferred to the Commission for use
for any purpose contemplated by the Ordinance. The fee that the Board of Equalization is
authorized to charge for collection of the Sales Tax is determined by State legislation. The.
Board of Equalization fee for collection of the Sales Tax for fiscal year 2010-11 is estimated at
Historical Sales Tax Receipts
The following table sets forth net sales tax receipts for the Fiscal Years indicated below.
Net sales tax receipts through a portion of 2009 were received under the Prior Ordinance and
were levied by the Commission at the same rate and on the same types of transactions as the
sales tax constituting the Sales Tax Revenues.
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
HISTORICAL SALES TAX RECEIPTS
Fiscal Year Net Sales % Change
Ended June 30 Tax Receipts") (2) From Prior Fiscal Year
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
2008 146,083,683 (7.01)
2009 124,691,932 (14.64)
2010 111,809,759(3) (10.33)
(1) Net of Board of Equalization administrative fee.
(2) Amounts shown for the Fiscal Years ended June 30, 2001 through 2008, collected under the Prior
Ordinance, consist of amounts that the Commission actually received from the Board of Equalization,
calculated on a cash basis. The month of receipt reflected the estimated amount for sales tax
transactions that occurred approximately two months prior. At the end of each quarter, an adjustment
(i.e., increase or decrease) was made to those estimates and included with the quarter -end
disbursement.
(3) Amounts shown for the Fiscal Year ended June 30, 2009 through 2010 were calculated with respect to
Measure A Sales Tax receipts on a modified accrual basis and measured from the date that a relevant
sales transaction took place, and not from the date of actual receipt from the Board of Equalization.
Source: The Commission.
Annual Measure A Sales Tax receipts received for the Fiscal Year ended June 30, 2010
are $111,809,759, representing a decline of (10.33%) from the Measure A Sales Tax receipts
received in the Fiscal year ended June 30, 2009. Year over year quarterly declines/increases for
the Fiscal Year ended June 30, 2010 were: (20.66%) first quarter, (16.23%) second quarter,
(3.81%) third quarter and 2.46% fourth quarter. Measure A Sales Tax receipts received for the
[first] month of the Fiscal Year ending June 30, 2011 are [$7,821,300], representing a decline of
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[ ( 6 . 4 4 % ) ] f r o m t h o s e r e c e i v e d i n t h e [ f i r s t ] m o n t h o f t h e F i s c a l Y e a r e n d e d J u n e 3 0 , 2 0 1 0 .
[ U P D A T E W H E N A V A I L A B L E ] S e e " 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 " a n d " R I S K F A C T O R S " h e r e i n .
T h e C o m m i s s i o n i s u n a b l e t o p r e d i c t i f a n d w h e n S a l e s T a x R e c e i p t s w i l l i n c r e a s e . F o r a
s u m m a r y o f h i s t o r i c a l t a x a b l e r e t a i l s a l e s w i t h i n t h e C o u n t y , s e e , t h e t a b l e e n t i t l e d " 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 " 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 . "
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 h e m a x i m u m a n n u a l d e b t s e r v i c e c o v e r a g e o n t h e B o n d s
b a s e d o n h i s t o r i c a l S a l e s T a x r e c e i p t s f o r t h e F i s c a l Y e a r e n d e d J u n e 3 0 , 2 0 1 0 .
S a l e s T a x R e v e n u e s
M e a s u r e A
M a x i m u m A n n u a l P r o j e c t e d
D e b t S e r v i c e ' ) C o v e r a g e
( ' ) I n t e r e s t o n v a r i a b l e r a t e d e b t i s c a l c u l a t e d a s s u m i n g t h e i n t e r e s t r a t e s a r e e q u a l t o t h e f i x e d r a t e s o n t h e
E x i s t i n g S w a p s . U n d e r t h e I n d e n t u r e , t h e F e d e r a l S u b s i d y i s t r e a t e d a s a n o f f - s e t t o d e b t s e r v i c e . " S e e
D E B T S E R V I C E S C H E D U L E " h e r e i n .
S o u r c e : 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
G e n e r a l
T h e C o m m i s s i o n i s c h a r g e d w i t h a n u m b e r o f i m p o r t a n t r e s p o n s i b i l i t i e s i n s e r v i n g t h e
r e s i d e n t s o f t h e C o u n t y . A d m i n i s t e r i n g t h e s a l e s t a x p r o g r a m , w h i c h h a s r a i s e d m o r e t h a n $ 1
b i l l i o n , h a s b e e n b y f a r t h e m o s t p r o m i n e n t o f t h e s e r e s p o n s i b i l i t i e s . T h e C o m m i s s i o n , w h i c h
h a s t h e r e s p o n s i b i l i t y o f p l a c i n g f u t u r e t r a n s p o r t a t i o n b a l l o t m e a s u r e s b e f o r e t h e p u b l i c , w a s
s u c c e s s f u l i n N o v e m b e r 2 0 0 2 i n o b t a i n i n g m o r e t h a n t w o - t h i r d s v o t e r a p p r o v a l o f t h e S a l e s T a x .
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 M e a s u r e A r e s p o n s i b i l i t i e s , t h e C o m m i s s i o n h a s a l s o
b e e n d e s i g n a t e d a s t h e c o n g e s t i o n m a n a g e m e n t a g e n c y ( t h e " C M A " ) f o r t h e C o u n t y . A s t h e
C M A , t h e C o m m i s s i o n h a s d e v e l o p e d a 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 t h a t m o r e e f f e c t i v e l y
u t i l i z e s t r a n s p o r t a t i o n f u n d s b y l i n k i n g l a n d u s e , t r a n s p o r t a t i o n a n d a i r q u a l i t y e f f o r t s .
T h e C o m m i s s i o n s e r v e s a s t h e s e r v i c e a u t h o r i t y f o r f r e e w a y e m e r g e n c i e s a n d o p e r a t e s t h e
f r e e w a y s e r v i c e p a t r o l ( t h e " F S P " ) f o r t h e C o u n t y . T h e r e s u l t s o f t h e s e p r o g r a m s 6 8 0 c a l l
b o x e s a l o n g t h e C o u n t y r o a d w a y s a n d 2 0 F S P t o w t r u c k s p r o v i d i n g a s s i s t a n c e t o m o r e t h a n
5 2 , 0 0 0 m o t o r i s t s a n n u a l l y a r e a m o n g t h e m o s t v i s i b l e o f t h e C o m m i s s i o n ' s p r o g r a m s .
I n 1 9 9 8 , t h e S t a t e L e g i s l a t u r e g a v e n e w a u t h o r i t y t o t h e C o m m i s s i o n b y c h a n g i n g t h e
w a y f u n d i n g i s d i s t r i b u t e d f r o m 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 , w h i c h i s f u n d e d
t h r o u g h s t a t e a n d f e d e r a l g a s t a x e s . I n s i m p l e t e r n s , c o u n t i e s n o l o n g e r a p p l y t o t h e S t a t e f o r
f u n d i n g t h e i r m o s t u r g e n t t r a n s p o r t a t i o n n e e d s . I n s t e a d , S t a t e t r a n s p o r t a t i o n d o l l a r s a r e g i v e n
d i r e c t l y a s a n e n t i t l e m e n t , l e a v i n g t h e d e c i s i o n m a k i n g a b o u t t r a n s p o r t a t i o n s p e n d i n g u p t o t h e
5 5 6 3 2 6 6 0 . 4
2 1
5 6
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.
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 Board expanded in 2008 with the addition of two members representing newly
incorporated cities and again in 2010 with addition of one member representing another newly
incorporated city. Thus, the current Board has thirty three members. The expanded Commission
ensures better representation throughout the County and provides the participatory framework
for continued success in carrying out these responsibilities.
The Transportation Expenditure Plan
On November 5, 2002, 69.2% of the voters of the County approved Measure "A" — The
Riverside County Transportation Commission Transportation Expenditure Plan (the "PIan") 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 (Le., 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
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u s e d f o r n e w c o r r i d o r p r o j e c t s , $ 1 . 0 2 0 b i l l i o n f o r h i g h w a y p r o j e c t s , $ 3 0 0 m i l l i o n 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 s , $ 3 9 0 m i l l i o n f o r p u b l i c t r a n s i t , $ 9 7 0 m i l l i o n f o r l o c a l s t r e e t a n d r o a d
i m p r o v e m e n t s , $ 2 7 0 m i l l i o n f o r b o n d f i n a n c i n g c o s t s , a n d t h e r e m a i n i n g $ 4 0 m i l l i o n f o r
e c o n o m i c d e v e l o p m e n t p r o j e c t s . I n t h e C o a c h e l l a V a l l e y , f i f t y p e r c e n t i s t o b e e a r m a r k e d f o r i t s
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 s y s t e m , t h i r t y - f i v e p e r c 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 , a n d t h e
r e m a i n i n g f i f t e e n p e r c e n t f o r t r a n s i t . A l l P a l o V e r d e V a l l e y f u n d s a r e d e s i g n a t e d f o r t h e
m a i n t e n a n c e o f l o c a l s t r e e t s a n d r o a d s .
T o l l R o a d B o n d s
O n J u l y 1 4 , 2 0 1 0 , t h e C o m m i s s i o n a d o p t e d R e s o l u t i o n N o . 1 0 - 0 2 6 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 $ 9 0 0 m i l l i o n p r i n c i p a l a m o u n t o f t o l l r e v e n u e b o n d s . T h e
p r o c e e d s o f t h e t o l l r e v e n u e b o n d s w i l l b e a p p l i e d t o f i n a n c e c e r t a i n S t a t e R o u t e 9 1 c o r r i d o r
i m p r o v e m e n t p r o j e c t c o s t s t h r o u g h a d e s i g n - b u i l d m e t h o d o f d e l i v e r y . T h e C o m m i s s i o n e x p e c t s
t o s e c u r e t h e t o l l r e v e n u e b o n d s b y a f i r s t l i e n o n t o l l r e v e n u e s a n d p o s s i b l y b y a s u b o r d i n a t 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 . S u b o r d i n a t e B o n d s s e c u r e d b y t o l l r e v e n u e s w o u l d n o t b e s u b j e c t
t o t h e c u r r e n t l i m i t o n t h e t o t a l p r i n c i p a l a m o u n t o f b o n d s s e c u r e d b y S a l e s T a x R e v e n u e s . S e e
" O T H E R S A L E S T A X O B L I G A T I O N S - L i m i t a t i o n o n O u t s t a n d i n g S a l e s T a x O b l i g a t i o n s "
h e r e i n .
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 5 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 c u r r e n t a p p o i n t m e n t . M r . S t a n d i f o r d 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
5 5 6 3 2 6 6 0 . 4
2 3
5 8
Authority, where he worked for more than seven years. Earlier in his career, Mr. Standiford
worked for three state legislators from the Los Angeles area. He received his bachelor and
masters degrees from the University of California, Irvine.
Theresia Trevino, Chief Financial Officer. Ms. Trevino joined the Commission as the
Chief Financial Officer in January 2004. Ms. Trevino previously worked as Manager of
Accounting and Financial Reporting for the Orange County Transportation Authority. She also
served as an adjunct professor for governmental accounting and reporting at the University of
Redlands. Ms. Trevino's 19-year public accounting career included 16 years with Ernst &
Young LLP. As Senior Manager in its Assurance and Advisory Business Services practice
serving government clients, she led the development of the Southern California practice and
served as a national technical resource. She is a Certified Public Accountant in California and
completed the Executive Management Program at the University of California, Riverside. Ms.
Trevino received a bachelor of science degree in accounting from Loyola Marymount University
with Magna Cum Laude Honors.
RISK FACTORS
Economic Recession and Financial Crisis
The economy of the County has been in a recession as evidenced by a decrease in Sales
Tax Revenues, an increased unemployment rate, a decrease in total personal income and taxable
sales, a drop in residential and commercial building permits, a decline in the rate of home sales
and the median price of single-family homes and condominiums, an increase in notices of default
on mortgage loans secured by homes and condominiums and an increase in foreclosures
resulting from such defaults. For information relating to current economic conditions within the
County and the State see "APPENDIX B COUNTY DEMOGRAPHIC AND ECONOMIC
INFORMATION." [TO BE REVISED/UPDATED]
Investments
The Commission has significant holdings in a broad range of investments. Market
fluctuations have affected and will continue to affect materially the value of those investments
and those fluctuations may be and historically have been material. Recent market disruptions
have exacerbated the market fluctuations, but as a result of stable investments in government
securities, the Commission's portfolio has not suffered any major losses with respect to the
principal amount of funds invested. The Commission has experienced a reduction in interest
income on such investments as a result of current market conditions. There can be no guaranty
that any future investment losses will not be material.
No Acceleration Provision
The Indenture does not contain a provision allowing for acceleration of the 2010 Bonds
in the event of a default in the payment of principal of and interest on the 2010 Bonds when due.
Upon a default by the Commission, each Holder of a 2010 Bond will have the rights to exercise
the remedies set forth in the Indenture, subject to the limitations thereon. See "APPENDIX C —
SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE."
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T h e S a l e s T a x
W i t h l i m i t e d e x c e p t i o n s , t h e S a l e s T a x w i l l b e i m p o s e d u p o n t h e s a m e t r a n s a c t i o n s a n d
i t e m s s u b j e c t t o t h e s a l e s t a x l e v i e d s t a t e w i d e b y t h e S t a t e . T h e S t a t e L e g i s l a t u r e o r t h e v o t e r s
w i t h i n t h e S t a t e , t h r o u g h t h e i n i t i a t i v e p r o c e s s , c o u l d c h a n g e o r l i m i t t h e t r a n s a c t i o n s a n d i t e m s
u p o n w h i c h t h e s t a t e w i d e s a l e s t a x a n d t h e S a l e s T a x a r e i m p o s e d . A n y s u c h c h a n g e o r
l i m i t a t i o n c o u l d h a v e a n a d v e r s e i m p a c t o n t h e 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 . F o r a f u r t h e r
d e s c r i p t i o n o f t h e S a l e s T a x , s e e " T H E S A L E S T A X . "
P r o p o s i t i o n 2 1 8
O n N o v e m b e r 5 , 1 9 9 6 , v o t e r s i n t h e S t a t e a p p r o v e d a n i n i t i a t i v e k n o w n a s t h e R i g h t t o
V o t e o n T a x e s A c t ( " P r o p o s i t i o n 2 1 8 " ) . P r o p o s i t i o n 2 1 8 a d d e d A r t i c l e s X I I I C a n d X I I I D t o t h e
C a l i f o r n i a C o n s t i t u t i o n . A r t i c l e X I I I C r e q u i r e s m a j o r i t y v o t e r a p p r o v a l f o r t h e i m p o s i t i o n ,
e x t e n s i o n o r i n c r e a s e o f g e n e r a l t a x e s a n d t w o - t h i r d s v o t e r a p p r o v a l f o r t h e i m p o s i t i o n , e x t e n s i o n
o r i n c r e a s e o f s p e c i a l t a x e s b y a l o c a l g o v e r n m e n t , w h i c h i s d e f i n e d t o i n c l u d e l o c a l o r r e g i o n a l
g o v e r n m e n t a l 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 . 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 v o t e r s i n R i v e r s i d e C o u n t y a n d i s t h e r e f o r e i n c o m p l i a n c e w i t h t h e r e q u i r e m e n t s
o f P r o p o s i t i o n 2 1 8 . A r t i c l e X I I I C a l s o r e m o v e s l i m i t a t i o n s t h a t m a y h a v e a p p l i e d t o t h e v o t e r
i n i t i a t i v e p o w e r w i t h r e g a r d t o r e d u c i n g o r r e p e a l i n g p r e v i o u s l y a u t h o r i z e d l o c a l t a x e s , e v e n
p r e v i o u s l y v o t e r - a p p r o v e d t a x e s l i k e t h e S a l e s T a x . I n t h e v i e w o f t h e C o m m i s s i o n , h o w e v e r ,
a n y a t t e m p t b y t h e v o t e r s t o u s e t h e i n i t i a t i v e p r o v i s i o n s o f P r o p o s i t i o n 2 1 8 t o r e s c i n d o r r e d u c e
t h e l e v y a n d c o l l e c t i o n o f t h e S a l e s T a x i n a m a n n e r w h i c h w o u l d p r e v e n t t h e p a y m e n t o f d e b t
s e r v i c e o n t h e 2 0 1 0 B o n d s , w o u l d v i o l a t e t h e C o n t r a c t s C l a u s e o f t h e U n i t e d S t a t e s C o n s t i t u t i o n
a n d , a c c o r d i n g l y , w o u l d b e p r e c l u d e d . T h e i n t e r p r e t a t i o n a n d a p p l i c a t i o n o f P r o p o s i t i o n 2 1 8 w i l l
u l t i m a t e l y b e d e t e r m i n e d b y t h e c o u r t s .
F u r t h e r I n i t i a t i v e s
P r o p o s i t i o n 2 1 8 w a s a d o p t e d a s a m e a s u r e t h a t q u a l i f i e d f o r t h e b a l l o t p u r s u a n t t o
C a l i f o r n i a ' s i n i t i a t i v e p r o c e s s . F r o m t i m e t o t i m e o t h e r i n i t i a t i v e m e a s u r e s c o u l d b e a d o p t e d ,
w h i c h m a y a f f e c t t h e C o m m i s s i o n ' s a b i l i t y t o l e v y a n d c o l l e c t t h e S a l e s T a x , o r c h a n g e t h e t y p e s
o f t r a n s a c t i o n s o r i t e m s s u b j e c t t o a S a l e s T a x .
L o s s o f T a x E x e m p t i o n
A s d i s c u s s e d u n d e r " T A X M A T T E R S , " i n t e r e s t o n t h e 2 0 1 0 B o n d s c o u l d b e c o m e
i n c l u d a b l e i n f e d e r a l g r o s s i n c o m e , p o s s i b l y f r o m t h e d a t e o f i s s u a n c e o f t h e 2 0 1 0 B o n d s , a s a
r e s u l t o f a c t s o r o m i s s i o n s o f t h e C o m m i s s i o n 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 1 0 B o n d s .
S h o u l d i n t e r e s t b e c o m e i n c l u d a b l e i n f e d e r a l g r o s s i n c o m e , t h e 2 0 1 0 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 r e d e m p t i o n b y r e a s o n t h e r e o f a n d m a y r e m a i n o u t s t a n d i n g u n t i l m a t u r i t y .
B u i l d A m e r i c a B o n d s
T h e 2 0 1 0 S e r i e s B B o n d s a r e b e i n g i s s u e d a s " B u i l d A m e r i c a B o n d s . " S e e " T H E 2 0 1 0
B O N D S - D e s i g n a t i o n o f 2 0 1 0 S e r i e s B B o n d s a s " B u i l d A m e r i c a B o n d s " h e r e i n . [ T h e a m o u n t
o f a n y F e d e r a l S u b s i d y p a y m e n t s t o b e r e c e i v e d i n c o n n e c t i o n w i t h t h e 2 0 1 0 S e r i e s B B o n d s a r e
s u b j e c t t o l e g i s l a t i v e c h a n g e s b y t h e U n i t e d S t a t e s C o n g r e s s . F u r t h e r , F e d e r a l S u b s i d y p a y m e n t s
5 5 6 3 2 6 6 0 . 4
2 5
6 0
will only be paid if the 2010 Series B Bonds continue to qualify as Build America Bonds. For
the 2010 Series B Bonds to be an remain Build America Bonds, the Commission must comply
with certain covenants and establish certain facts and expectations with respect to the 2010
Series B Bonds, the use and investment of proceeds thereof and the use of property financed.
thereby. Thus, it is possible that the Commission may not receive the Federal Subsidy. Federal
Subsidy payments are also subject to offset against amounts that may, for unrelated reasons, be
owed by the Commission to any agency of the United States of America. The Commission does
not believe that failure to receive the Federal Subsidy or any offset to the Federal Subsidy will
materially and adversely impact the Commission's ability to pay interest on the 2010 Series B
Bonds.]
FINANCIAL STATEMENTS
The financial statements of the Commission for the Fiscal Year ended June 30, 2010,
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, 2010.
LITIGATION
There is not now pending any litigation restraining or enjoining the issuance or delivery
of the 2010 Bonds or questioning or affecting the validity of the 2010 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 2010 Series A Bonds is excluded from gross
income for federal income tax purposes under Section 103 of the Code. In the further opinion of
Bond Counsel, interest on the 20] 0 Series A Bonds is not a specific preference item for purposes
of the federal individual and corporate alternative minimum taxes, nor is it included in adjusted
current earnings when calculating corporate alternative minimum taxable income. Interest on the
2010 Bonds is exempt from State of California personal income taxes. Bond Counsel observes
that interest on the 2010 Series B Bonds is not excluded from gross income for federal income
tax purposes. Bond Counsel expresses no opinion regarding any other tax consequences relating
to the ownership or disposition of, or accrual or receipt of interest on the 2010 Bonds. A
complete copy of the proposed form of the opinion of Bond Counsel is set forth in APPENDIX
E.
55632660.4
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T a x M a t t e r s R e l a t i n g t o t h e 2 0 1 0 S e r i e s A B o n d s
T o t h e e x t e n t t h e i s s u e p r i c e o f a n y m a t u r i t y o f t h e 2 0 1 0 S e r i e s A B o n d s i s l e s s , t h a n t h e
a m o u n t t o b e p a i d a t m a t u r i t y o f s u c h 2 0 1 0 S e r i e s A B o n d s ( e x c l u d i n g a m o u n t s s t a t e d t o b e
i n t e r e s t a n d p a y a b l e a t l e a s t a n n u a l l y o v e r t h e t e r m o f s u c h 2 0 1 0 S e r i e s A B o n d s ) , t h e d i f f e r e n c e
c o n s t i t u t e s " o r i g i n a l i s s u e d i s c o u n t , " t h e a c c r u a l o f w h i c h , t o t h e e x t e n t p r o p e r l y a l l o c a b l e t o
e a c h b e n e f i c i a l o w n e r t h e r e o f , i s t r e a t e d a s i n t e r e s t o n t h e 2 0 1 0 S e r i e s A B o n d s w h i c h i s
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 a n d S t a t e o f C a l i f o r n i a p e r s o n a l
i n c o m e t a x e s . F o r t h i s p u r p o s e , t h e i s s u e p r i c e o f a p a r t i c u l a r m a t u r i t y o f t h e 2 0 1 0 S e r i e s A
B o n d s i s t h e f i r s t p r i c e a t w h i c h a s u b s t a n t i a l a m o u n t o f s u c h m a t u r i t y o f t h e 2 0 1 0 S e r i e s A
B o n d s i s s o l d t o t h e p u b l i c ( e x c l u d i n g b o n d h o u s e s , b r o k e r s , o r s i m i l a r p e r s o n s o r o r g a n i z a t i o n s
a c t i n g i n t h e c a p a c i t y o f u n d e r w r i t e r s , p l a c e m e n t a g e n t s o r w h o l e s a l e r s ) . T h e o r i g i n a l i s s u e
d i s c o u n t w i t h r e s p e c t t o a n y m a t u r i t y o f t h e 2 0 1 0 S e r i e s A B o n d s a c c r u e s d a i l y o v e r t h e t e r m t o
m a t u r i t y o f s u c h 2 0 1 0 S e r i e s A B o n d s o n t h e b a s i s o f a c o n s t a n t i n t e r e s t r a t e c o m p o u n d e d
s e m i a n n u a l l y ( w i t h s t r a i g h t - l i n e i n t e r p o l a t i o n s b e t w e e n c o m p o u n d i n g d a t e s ) . T h e a c c r u i n g
o r i g i n a l i s s u e d i s c o u n t i s a d d e d t o t h e a d j u s t e d b a s i s o f s u c h 2 0 1 0 S e r i e s A B o n d s t o d e t e r m i n e
t a x a b l e g a i n o r l o s s u p o n d i s p o s i t i o n ( i n c l u d i n g s a l e , r e d e m p t i o n , o r p a y m e n t o n m a t u r i t y ) o f
s u c h 2 0 1 0 S e r i e s A B o n d s . B e n e f i c i a l o w n e r s o f t h e 2 0 1 0 S e r i e s A B o n d s s h o u l d c o n s u l t t h e i r
o w n t a x a d v i s o r s w i t h r e s p e c t t o t h e t a x c o n s e q u e n c e s o f o w n e r s h i p o f 2 0 1 0 S e r i e s A B o n d s w i t h
o r i g i n a l i s s u e d i s c o u n t , i n c l u d i n g t h e t r e a t m e n t o f b e n e f i c i a l o w n e r s w h o d o n o t p u r c h a s e s u c h
2 0 1 0 S e r i e s A B o n d s i n t h e o r i g i n a l o f f e r i n g t o t h e p u b l i c a t t h e f i r s t p r i c e a t w h i c h a s u b s t a n t i a l
a m o u n t o f s u c h 2 0 1 0 S e r i e s A B o n d s i s s o l d t o t h e p u b l i c .
2 0 1 0 S e r i e s A B o n d s p u r c h a s e d , w h e t h e r a t o r i g i n a l i s s u a n c e o r o t h e r w i s e , f o r a n a m o u n t
h i g h e r t h a n t h e i r p r i n c i p a l a m o u n t p a y a b l e a t m a t u r i t y ( o r , i n s o m e c a s e s , a t t h e i r e a r l i e r c a l l
d a t e ) ( " P r e m i u m 2 0 1 0 B o n d s " ) w i l l b e t r e a t e d a s h a v i n g a m o r t i z a b l e b o n d p r e m i u m . N o
d e d u c t i o n i s a l l o w a b l e f o r t h e a m o r t i z a b l e b o n d p r e m i u m i n t h e c a s e o f b o n d s , l i k e t h e P r e m i u m
2 0 1 0 B o n d s , 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 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 . H o w e v e r , t h e a m o u n t o f t a x - e x e m p t i n t e r e s t r e c e i v e d , a n d a b e n e f i c i a l o w n e r ' s b a s i s
i n a P r e m i u m 2 0 1 0 B o n d , w i l l b e r e d u c e d b y t h e a m o u n t o f a m o r t i z a b l e b o n d p r e m i u m p r o p e r l y
a l l o c a b l e t o s u c h b e n e f i c i a l o w n e r . B e n e f i c i a l o w n e r s o f P r e m i u m 2 0 1 0 B o n d s s h o u l d c o n s u l t
t h e i r o w n t a x a d v i s o r s w i t h r e s p e c t t o t h e p r o p e r t r e a t m e n t o f a m o r t i z a b l e b o n d p r e m i u m i n t h e i r
p a r t i c u l a r c i r c u m s t a n c e s .
T h e C o d e i m p o s e s v a r i o u s r e s t r i c t i o n s , c o n d i t i o n s a n d r e q u i r e m e n t s r e l a t i n g t o 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 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 o f i n t e r e s t o n o b l i g a t i o n s s u c h a s
t h e 2 0 1 0 S e r i e s A B o n d s . T h e C o m m i s s i o n h a s m a d e c e r t a i n r e p r e s e n t a t i o n s a n d c o v e n a n t e d t o
c o m p l y w i t h c e r t a i n r e s t r i c t i o n s , c o n d i t i o n s a n d r e q u i r e m e n t s d e s i g n e d t o e n s u r e t h a t i n t e r e s t o n
t h e 2 0 1 0 S e r i e s A B o n d s w i l l n o t b e i n c l u d e d i n f e d e r a l g r o s s i n c o m e . I n a c c u r a c y o f t h e s e
r e p r e s e n t a t i o n s o r f a i l u r e t o c o m p l y w i t h t h e s e c o v e n a n t s m a y r e s u l t i n i n t e r e s t o n , t h e 2 0 1 0
S e r i e s A B o n d s b e i n g 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 , p o s s i b l y f r o m
t h e d a t e o f o r i g i n a l i s s u a n c e o f t h e 2 0 ] 0 S e r i e s A B o n d s . T h e o p i n i o n o f B o n d C o u n s e l a s s u m e s
t h e a c c u r a c y o f t h e s e r e p r e s e n t a t i o n s a n d c o m p l i a n c e w i t h t h e s e c o v e n a n t s . B o n d C o u n s e l h a s
n o t u n d e r t a k e n t o d e t e r m i n e ( o r t o i n f o r m a n y p e r s o n ) w h e t h e r a n y a c t i o n s t a k e n ( o r n o t t a k e n ) ,
o r e v e n t s o c c u r r i n g ( o r n o t o c c u r r i n g ) , o r a n y o t h e r m a t t e r s c o m i n g t o B o n d C o u n s e l ' s a t t e n t i o n
a f t e r t h e d a t e o f i s s u a n c e o f t h e 2 0 ] 0 S e r i e s A B o n d s m a y a d v e r s e l y a f f e c t t h e v a l u e o f , o r t h e
t a x s t a t u s o f i n t e r e s t o n , t h e 2 0 1 0 S e r i e s A B o n d s . A c c o r d i n g l y , t h e o p i n i o n o f B o n d C o u n s e l i s
5 5 6 3 2 6 6 0 4
2 7
6 2
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 2010 Series A Bonds is
excluded from gross income for federal income tax purposes and that the interest on the 2010
Bonds is exempt from State of Califomia personal income taxes, the ownership or disposition of,
or the accrual or receipt of interest on, the 2010 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 2010 Series A 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. 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 2010
Series A Bonds. Prospective purchasers of the 2010 Series A 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 2010 Series A 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 2010 Series A Bonds ends with the
issuance of the 2010 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 2010
Series A 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 2010 Series A Bonds for audit, or the course or result of such audit, or an audit
of bonds presenting similar tax issues may affect the market price for, or the marketability of, the
2010 Series A Bonds, and may cause the Commission or the beneficial owners to incur
significant expense.
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T a x M a t t e r s R e l a t i n g t o t h e 2 0 1 0 S e r i e s B B o n d s
T h e f o l l o w i n g d i s c u s s i o n s u m m a r i z e s c e r t a i n U . S . f e d e r a l t a x c o n s i d e r a t i o n s g e n e r a l l y
a p p l i c a b l e t o h o l d e r s o f t h e 2 0 1 0 S e r i e s B B o n d s t h a t a c q u i r e t h e i r 2 0 1 0 S e r i e s B B o n d s i n t h e
i n i t i a l o f f e r i n g . T h e d i s c u s s i o n b e l o w i s b a s e d u p o n l a w s , r e g u l a t i o n s , r u l i n g s , a n d d e c i s i o n s i n
e f f e c t a n d a v a i l a b l e o n t h e d a t e h e r e o f , a l l o f w h i c h a r e s u b j e c t t o c h a n g e , p o s s i b l y w i t h
r e t r o a c t i v e e f f e c t . P r o s p e c t i v e i n v e s t o r s s h o u l d n o t e t h a t n o r u l i n g s h a v e b e e n o r a r e e x p e c t e d t o
b e s o u g h t f r o m t h e I R S w i t h r e s p e c t t o a n y o f t h e U . S . f e d e r a l i n c o m e t a x c o n s e q u e n c e s
d i s c u s s e d b e l o w , a n d n o a s s u r a n c e c a n b e g i v e n t h a t t h e I R S w i l l n o t t a k e c o n t r a r y p o s i t i o n s .
F u r t h e r , t h e f o l l o w i n g d i s c u s s i o n d o e s n o t d e a l w i t h a l l U . S . f e d e r a l i n c o m e t a x c o n s e q u e n c e s
a p p l i c a b l e t o a n y g i v e n i n v e s t o r , n o r d o e s i t a d d r e s s t h e U . S . f e d e r a l i n c o m e t a x c o n s i d e r a t i o n s
a p p l i c a b l e t o c a t e g o r i e s o f i n v e s t o r s s o m e o f w h i c h m a y b e s u b j e c t t o s p e c i a l t a x i n g r u l e s
( r e g a r d l e s s o f w h e t h e r o r n o t s u c h p e r s o n s c o n s t i t u t e U . S . H o l d e r s ) , s u c h a s c e r t a i n U . S .
e x p a t r i a t e s , b a n k s , R E I T s , R I C s , i n s u r a n c e c o m p a n i e s , t a x - e x e m p t o r g a n i z a t i o n s , d e a l e r s o r
t r a d e r s i n s e c u r i t i e s o r c u r r e n c i e s , p a r t n e r s h i p s , S c o r p o r a t i o n s , e s t a t e s a n d t r u s t s , i n v e s t o r s t h a t
h o l d t h e i r 2 0 1 0 S e r i e s B B o n d s a s p a r t o f a h e d g e , s t r a d d l e o r a n i n t e g r a t e d o r c o n v e r s i o n
t r a n s a c t i o n , o r i n v e s t o r s w h o s e " f u n c t i o n a l c u r r e n c y " i s n o t t h e U . S . d o l l a r . F u r t h e r m o r e , i t d o e s
n o t a d d r e s s ( i ) a l t e r n a t i v e m i n i m u m t a x c o n s e q u e n c e s o r ( i i ) t h e i n d i r e c t e f f e c t s o n p e r s o n s w h o
h o l d e q u i t y i n t e r e s t s i n a h o l d e r . I n a d d i t i o n , t h i s s u m m a r y g e n e r a l l y i s l i m i t e d t o i n v e s t o r s t h a t
a c q u i r e t h e i r 2 0 1 0 S e r i e s B B o n d s p u r s u a n t t o t h i s o f f e r i n g f o r t h e i s s u e p r i c e t h a t i s a p p l i c a b l e
t o s u c h 2 0 1 0 S e r i e s B B o n d s ( i . e . , t h e p r i c e a t w h i c h a s u b s t a n t i a l a m o u n t o f t h e 2 0 1 0 S e r i e s B
B o n d s a r e s o l d t o t h e p u b l i c ) a n d w h o w i l l h o l d t h e i r 2 0 1 0 S e r i e s B B o n d s a s " c a p i t a l a s s e t 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 2 2 1 o f t h e C o d e .
A s u s e d h e r e i n , " U . S . H o l d e r " m e a n s a b e n e f i c i a l o w n e r o f a 2 0 1 0 S e r i e s B B o n d t h a t f o r
U . S . f e d e r a l i n c o m e t a x p u r p o s e s i s a n i n d i v i d u a l c i t i z e n o r r e s i d e n t o f t h e U n i t e d S t a t e s , a
c o r p o r a t i o n o r o t h e r e n t i t y t a x a b l e a s a c o r p o r a t i o n c r e a t e d o r o r g a n i z e d i n o r u n d e r 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 r a n y s t a t e t h e r e o f ( i n c l u d i n g t h e D i s t r i c t o f C o l u m b i a ) , a n e s t a t e t h e i n c o m e
o f w h i c h i s s u b j e c t t o U . S . f e d e r a l i n c o m e t a x a t i o n r e g a r d l e s s o f i t s s o u r c e o r a t r u s t w h e r e a
c o u r t w i t h i n t h e U n i t e d S t a t e s i s a b l e t o e x e r c i s e p r i m a r y s u p e r v i s i o n o v e r t h e a d m i n i s t r a t i o n o f
t h e t r u s t a n d o n e o r m o r e U n i t e d S t a t e s p e r s o n s ( a s d e f i n e d i n t h e C o d e ) h a v e t h e a u t h o r i t y t o
c o n t r o l a l l s u b s t a n t i a l d e c i s i o n s o f t h e t r u s t ( o r a t r u s t t h a t h a s m a d e a v a l i d e l e c t i o n u n d e r U . S .
T r e a s u r y R e g u l a t i o n s t o b e t r e a t e d a s a d o m e s t i c t r u s t ) . A s u s e d h e r e i n , " N o n - U . S . H o l d e r "
g e n e r a l l y m e a n s a b e n e f i c i a l o w n e r o f a 2 0 1 0 S e r i e s B B o n d ( o t h e r t h a n a p a r t n e r s h i p ) t h a t i s n o t
a U . S . H o l d e r . I f a p a r t n e r s h i p h o l d s 2 0 1 0 S e r i e s B B o n d s , t h e t a x t r e a t m e n t o f s u c h p a r t n e r s h i p
o r a p a r t n e r i n s u c h p a r t n e r s h i p g e n e r a l l y w i l l d e p e n d u p o n t h e s t a t u s o f t h e p a r t n e r a n d u p o n t h e
a c t i v i t i e s o f t h e p a r t n e r s h i p . P a r t n e r s h i p s h o l d i n g 2 0 1 0 S e r i e s B B o n d s , a n d p a r t n e r s i n s u c h
p a r t n e r s h i p s , s h o u l d c o n s u l t t h e i r o w n t a x a d v i s o r s r e g a r d i n g t h e t a x c o n s e q u e n c e s o f a n
i n v e s t m e n t i n t h e 2 0 1 0 S e r i e s B B o n d s ( i n c l u d i n g t h e i r s t a t u s a s U . S . H o l d e r s o r N o n - U . S .
H o l d e r s ) .
F o r U . S . H o l d e r s . T h e 2 0 1 0 S e r i e s B B o n d s a r e n o t e x p e c t e d t o b e t r e a t e d a s i s s u e d w i t h
o r i g i n a l i s s u e d i s c o u n t ( " O I D " ) f o r U . S . f e d e r a l i n c o m e t a x p u r p o s e s b e c a u s e t h e s t a t e d
r e d e m p t i o n p r i c e a t m a t u r i t y o f t h e 2 0 1 0 S e r i e s B B o n d s i s n o t e x p e c t e d t o e x c e e d t h e i r i s s u e
p r i c e , o r b e c a u s e a n y s u c h e x c e s s i s e x p e c t e d t o o n l y b e a d e m i n i m i s a m o u n t ( a s d e t e r m i n e d f o r
t a x p u r p o s e s ) .
5 5 6 3 2 6 6 0 4
2 9
6 4
Prospective investors that are not individuals or regular C corporations who are U.S.
persons purchasing the 2010 Series B Bonds for investment should consult their own tax
advisors as to any tax consequences to them from the purchase, ownership and disposition of the
2010 Series B Bonds.
Disposition of the 2010 Series B Bonds. Unless a nonrecognition provision of the Code
applies, the sale, exchange, redemption, defeasance, retirement (including pursuant to an offer by
the Commission) or other disposition of a 2010 Series B Bond, will be a taxable event for U.S.
federal income tax purposes. In such event, in general, a U.S. Holder of a 2010 Series B Bond
will recognize gain or loss equal to the difference between (i) the amount of cash plus the fair
market value of property received (except to the extent attributable to accrued but unpaid interest
on the 2010 Series B Bond which will be taxed in the manner described above) and (ii) the U.S.
Holder's adjusted tax basis in the 2010 Series B Bond (generally, the purchase price paid by the
U.S. Holder for the 2010 Series B Bond, decreased by any amortized premium). Any such gain
or loss generally will be capital gain or loss. In the case of a noncorporate U.S. Holder of the
2010 Series B Bonds, the maximum marginal U.S. federal income tax rate applicable to any such
gain will be lower than the maximum marginal U.S. federal income tax rate applicable to
ordinary income if such U.S. holder's holding period for the 2010 Series B Bonds exceeds one
year. The deductibility of capital losses is subject to limitations.
For Non-U.S. Holders.
Interest. Subject to the discussion below under the heading "Information Reporting and
Backup Withholding," payments of principal of, and interest on, any 2010 Series B Bond to a
Non-U.S. Holder, other than (1) a controlled foreign corporation, as such term is defined in the
Code, which is related to the Commission through stock ownership and (2) a bank which
acquires such 2010 Series B Bond in consideration of an extension of credit made pursuant to a
loan agreement entered into in the ordinary course of business, will not be subject to any U.S.
withholding tax provided that the beneficial owner of the 2010 Series B Bond provides a
certification completed in compliance with applicable statutory and regulatory requirements,
which requirements are discussed below under the heading "Information Reporting and Backup
Withholding," or an exemption is otherwise established.
Disposition of the Bonds. Subject to the discussion below under the heading
"Information Reporting and Backup Withholding," any gain realized by a Non-U.S. Holder upon
the sale, exchange, redemption, retirement (including pursuant to an offer by the Commission) or
other disposition of a 2010 Series B Bond generally will not be subject to U.S. federal income
tax, unless (i) such gain is effectively connected with the conduct by such Non-U.S. Holder of a
trade or business within the United States; or (ii) in the case of any gain realized by an individual
Non-U.S. Holder, such holder is present in the United States for 183 days or more in the taxable
year of such sale, exchange, redemption, retirement (including pursuant to an offer by the
Commission) or other disposition and certain other conditions are met.
U.S. Federal Estate Tax. A 2010 Series B Bond that is held by an individual who at the
time of death is not a citizen or resident of the United States will not be subject to U.S. federal
estate tax as a result of such individual's death, provided that at the time of such individual's
death, payments of interest with respect to such 2010 Series B Bond would not have been
55632660.4
30
•
i
65
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e f f e c t i v e l y c o n n e c t e d w i t h t h e c o n d u c t b y s u c h i n d i v i d u a l o f a t r a d e o r b u s i n e s s w i t h i n t h e
U n i t e d S t a t e s .
I n f o r m a t i o n R e p o r t i n g a n d B a c k u p W i t h h o l d i n g . U . S . i n f o r m a t i o n r e p o r t i n g a n d " b a c k u p .
w i t h h o l d i n g " r e q u i r e m e n t s a p p l y t o c e r t a i n p a y m e n t s 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 t h e 2 0 1 0
S e r i e s B B o n d s , a n d t o p r o c e e d s o f t h e s a l e , e x c h a n g e , r e d e m p t i o n , r e t i r e m e n t ( i n c l u d i n g
p u r s u a n t t o a n o f f e r b y t h e C o m m i s s i o n ) o r o t h e r d i s p o s i t i o n o f a 2 0 1 0 S e r i e s B B o n d , t o c e r t a i n
n o n c o r p o r a t e h o l d e r s o f 2 0 1 0 S e r i e s B B o n d s t h a t a r e U n i t e d S t a t e s p e r s o n s . U n d e r c u r r e n t U . S .
T r e a s u r y R e g u l a t i o n s , p a y m e n t s o f p r i n c i p a l a n d i n t e r e s t o n a n y 2 0 1 0 S e r i e s B B o n d s t o a h o l d e r
t h a t i s n o t a U n i t e d S t a t e s p e r s o n w i l l n o t b e s u b j e c t t o a n y b a c k u p w i t h h o l d i n g t a x r e q u i r e m e n t s
i f t h e b e n e f i c i a l o w n e r o f t h e 2 0 1 0 S e r i e s B B o n d o r a f i n a n c i a l i n s t i t u t i o n h o l d i n g t h e 2 0 1 0
S e r i e s B B o n d o n b e h a l f o f t h e b e n e f i c i a l o w n e r i n t h e o r d i n a r y c o u r s e o f i t s t r a d e o r b u s i n e s s
p r o v i d e s a n a p p r o p r i a t e c e r t i f i c a t i o n t o t h e p a y o r a n d t h e p a y o r d o e s n o t h a v e a c t u a l k n o w l e d g e
t h a t t h e c e r t i f i c a t i o n i s f a l s e . I f a b e n e f i c i a l o w n e r p r o v i d e s t h e c e r t i f i c a t i o n , t h e c e r t i f i c a t i o n
m u s t g i v e t h e n a m e a n d a d d r e s s o f s u c h o w n e r , s t a t e t h a t s u c h o w n e r i s n o t a U n i t e d S t a t e s
p e r s o n , o r , i n t h e c a s e o f a n i n d i v i d u a l , t h a t s u c h o w n e r i s n e i t h e r a c i t i z e n n o r a r e s i d e n t o f t h e
U n i t e d S t a t e s , a n d t h e o w n e r m u s t s i g n t h e c e r t i f i c a t e u n d e r p e n a l t i e s o f p e r j u r y . i f a f i n a n c i a l
i n s t i t u t i o n , o t h e r t h a n a f i n a n c i a l i n s t i t u t i o n t h a t i s a q u a l i f i e d i n t e r m e d i a r y , p r o v i d e s t h e
c e r t i f i c a t i o n , t h e c e r t i f i c a t i o n m u s t s t a t e t h a t t h e f i n a n c i a l i n s t i t u t i o n h a s r e c e i v e d f r o m t h e
b e n e f i c i a l o w n e r t h e c e r t i f i c a t i o n s e t f o r t h i n t h e p r e c e d i n g s e n t e n c e , s e t f o r t h t h e i n f o r m a t i o n
c o n t a i n e d i n s u c h c e r t i f i c a t i o n , a n d i n c l u d e a c o p y o f s u c h c e r t i f i c a t i o n , a n d 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 t h e f i n a n c i a l i n s t i t u t i o n m u s t s i g n t h e c e r t i f i c a t e u n d e r p e n a l t i e s o f p e r j u r y . A
f i n a n c i a l i n s t i t u t i o n g e n e r a l l y w i l l n o t b e r e q u i r e d t o f u r n i s h t o t h e I R S t h e n a m e s o f t h e
b e n e f i c i a l o w n e r s o f t h e 2 0 1 0 S e r i e s B B o n d s t h a t a r e n o t U n i t e d S t a t e s p e r s o n s a n d c o p i e s o f
s u c h o w n e r s ' c e r t i f i c a t i o n s w h e r e t h e f i n a n c i a l i n s t i t u t i o n i s a q u a l i f i e d i n t e r m e d i a r y t h a t h a s
e n t e r e d i n t o a w i t h h o l d i n g a g r e e m e n t w i t h t h e I R S p u r s u a n t t o a p p l i c a b l e U . S . T r e a s u r y
R e g u l a t i o n s .
I n t h e c a s e o f p a y m e n t s t o a f o r e i g n p a r t n e r s h i p , f o r e i g n s i m p l e t r u s t o r f o r e i g n g r a n t o r
t r u s t , o t h e r t h a n p a y m e n t s t o a f o r e i g n p a r t n e r s h i p , f o r e i g n s i m p l e t r u s t o r f o r e i g n g r a n t o r t r u s t
t h a t q u a l i f i e s a s a w i t h h o l d i n g f o r e i g n p a r t n e r s h i p o r a w i t h h o l d i n g f o r e i g n t r u s t w i t h i n t h e
m e a n i n g o f a p p l i c a b l e U . S . T r e a s u r y R e g u l a t i o n s a n d p a y m e n t s t o a f o r e i g n p a r t n e r s h i p , f o r e i g n
s i m p l e t r u s t o r f o r e i g n g r a n t o r t r u s t t h a t a r e e f f e c t i v e l y c o n n e c t e d w i t h t h e c o n d u c t o f a t r a d e o r
b u s i n e s s w i t h i n t h e U n i t e d S t a t e s , t h e p a r t n e r s o f t h e f o r e i g n p a r t n e r s h i p , t h e b e n e f i c i a r i e s o f t h e
f o r e i g n s i m p l e t r u s t o r t h e p e r s o n s t r e a t e d a s t h e o w n e r s o f t h e f o r e i g n g r a n t o r t r u s t , a s t h e c a s e
m a y b e , w i l l b e r e q u i r e d t o p r o v i d e t h e c e r t i f i c a t i o n d i s c u s s e d a b o v e i n o r d e r t o e s t a b l i s h a n
e x e m p t i o n f r o m w i t h h o l d i n g a n d b a c k u p w i t h h o l d i n g t a x r e q u i r e m e n t s . T h e c u r r e n t b a c k u p
w i t h h o l d i n g t a x r a t e i s 2 8 % ( s u b j e c t t o f u t u r e a d j u s t m e n t ) .
I n a d d i t i o n , i f t h e f o r e i g n o f f i c e o f a f o r e i g n " b r o k e r , " a s d e f i n e d i n a p p l i c a b l e U . S .
T r e a s u r y R e g u l a t i o n s p a y s t h e p r o c e e d s o f t h e s a l e o f a B o n d t o t h e s e l l e r o f t h e 2 0 1 0 S e r i e s B
B o n d , b a c k u p w i t h h o l d i n g a n d i n f o r m a t i o n r e p o r t i n g r e q u i r e m e n t s w i l l n o t a p p l y t o s u c h
p a y m e n t p r o v i d e d t h a t s u c h b r o k e r d e r i v e s l e s s t h a n 5 0 % o f i t s g r o s s i n c o m e f o r c e r t a i n s p e c i f i e d
p e r i o d s f r o m t h e c o n d u c t o f a t r a d e o r b u s i n e s s w i t h i n t h e U n i t e d S t a t e s , i s n o t a c o n t r o l l e d
f o r e i g n c o r p o r a t i o n , a s s u c h t e r m i s d e f i n e d i n t h e C o d e , a n d i s n o t a f o r e i g n p a r t n e r s h i p ( 1 ) o n e
o r m o r e o f t h e p a r t n e r s o f w h i c h , a t a n y t i m e d u r i n g i t s t a x y e a r , a r e U . S . p e r s o n s ( a s d e f i n e d i n
U . S . T r e a s u r y R e g u l a t i o n s S e c t i o n 1 . 1 4 4 1 - 1 ( c ) ( 2 ) ) w h o , i n t h e a g g r e g a t e h o l d m o r e t h a n 5 0 % o f
5 5 6 3 2 6 6 0 . 4
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T h e r a t i n g s d e s c r i b e d a b o v e 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 t h e
2 0 1 0 B o n d 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 2 0 1 0 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 , s u s p e n 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 . T h e C o m m i s s i o n a n d t h e U n d e r w r i t e r s u n d e r t a k e n o r e s p o n s i b i l i t y t o o p p o s e a n y
s u c h r e v i s i o n , s u s p e n s i o n o r w i t h d r a w a l . A n y d o w n w a r d r e v i s i o n , s u s p e n s i o n o r w i t h d r a w a l o f
a n y r a t i n g 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 2 0 1 0 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 2 0 1 0 B o n d s .
U N D E R W R I T I N G
B a r c l a y s C a p i t a l I n c . a s r e p r e s e n t a t i v e o f i t s e l f ( t h e " R e p r e s e n t a t i v e " ) a n d D e L a R o s a &
C o . , a s u n d e r w r i t e r s o f t h e 2 0 1 0 S e r i e s A B o n d s ( t h e " U n d e r w r i t e r 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 2 0 1 0 S e r i e s A 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 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 1 0 S e r i e s A B o n d s , [ p l u s / m i n u s ] a n 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 $ , l e s s a n u n d e r w r i t e r s ' d i s c o u n t o f $ ) . T h e
R e p r e s e n t a t i v e 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 2 0 1 0 S e r i e s B 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 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 1 0 S e r i e s B B o n d s , l e s s
a n u n d e r w r i t e r s ' d i s c o u n t o f $ ) .
T h e P u r c h a s e C o n t r a c t f o r t h e 2 0 1 0 B o n d s 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 2 0 1 0 B o n d s i f a n y a r e p u r c h a s e d . T h e 2 0 1 0 B o n d s m a y b e o f f e r e d a n d s o l d b y t h e
U n d e r w r i t e r s t o c e r t a i n d e a l e r s a n d o t h e r s a t y i e l d s l o w e r t h a n t h e p u b l i c o f f e r i n g y i e l d i n d i c a t e d
o n t h e i n s i d e c o v e r h e r e o f , a n d s u c h p u b l i c o f f e r i n g y i e l d m a y b e c h a n g e d , f r o m t i m e t o t i m e , b y
t h e U n d e r w r i t e r s .
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 2 0 1 0 B o n d s . T h e
F i n a n c i a l A d v i s o r i s n o t o b l i g a t e d t o u n d e r t a k e , a n d h a s n o t u n d e r t a k e n t o m a k e , a n i n d e p e n d e n t
v e r i f i c a t i o n o r a s s u m e 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 , 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
i n f o r m a t i o n 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 . T h e F i n a n c i a l A d v i s o r i s a n i n d e p e n d e n t
f i n a n c i a l a d v i s o r y f i r m a n d i s n o t e n g a g e d i n t h e b u s i n e s s o f u n d e r w r i t i n g , t r a d i n g o r d i s t r i b u t i n g
m u n i c i p a l s e c u r i t i e s o r o t h e r p u b l i c s e c u r i t i e 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 t i n g e n t 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 2 0 1 0 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 a g r e e d t o e x e c u t e 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 w i l l
c o v e n a n t t h e r e i n f o r t h e b e n e f i t o f t h e b e n e f i c i a l o w n e r s o f t h e 2 0 1 0 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 a n d t h e S a l e s T a x b y n o t
l a t e r t h a n n i n e m o n t h s a f t e r t h e e n d o f t h e C o m m i s s i o n ' s p r i o r f i s c a l y e a r ( t h e " A n n u a l
R e p o r t s " ) , 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 ( t h e " L i s t e d
E v e n t s " ) . T h e A n n u a l R e p o r t s a n d n o t i c e s o f L i s t e d E v e n t s w i l l b e f i l e d w i t h t h e M S R B . S e e
5 5 6 3 2 6 6 0 4
3 3
6 8
"APPENDIX G — FORM OF CONTINUING DISCLOSURE UNDERTAKING." The
Commission has not, within the past five years, failed to comply in all material respects with any
previous continuing disclosure undertaking pursuant to the Rule to provide annual reports or
notices of material events.
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 ful{ 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 2010 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 to 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 2010 Bonds.
556326604
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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 .
5 5 6 3 2 6 6 0 4
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 :
E x e c u t i v e D i r e c t o r
3 5
7 0
"
7 1
"
"
"
5 5 6 3 2 6 6 0 . 4
A P P E N D I X A
C O M M I S S I O 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 F O R
F I S C A L Y E A R E N D E D J U N E 3 0 , 2 0 1 0
A - 1
7 2
"
"
7 3
"
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 i s p r o v i d e d a s g e n e r a l i n f o r m a t i o n a n d
h a s b e e n o b t a i n e d f r o m s o u r c e s t h a t t h e C o m m i s s i o n b e l i e v e s t o b e r e l i a b l e , b u t t h e C o m m i s s i o n
m a k e s n o r e p r e s e n t a t i o n a s t o 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 t h e i n f o r m a t i o n i n c l u d e d . T h e
w o r s e n i n g o f t h e e c o n o m y a t t h e C o u n t y , S t a t e a n d n a t i o n a l l e v e l s m a y n o t b e r e f l e c t e d i n t h e
d a t a p r e s e n t e d b e l o w , a s m o r e r e c e n t i n f o r m a t i o n h a s n o t b e e n m a d 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 .
T h e e c o n o m y o f t h e C o u n t y i s c u r r e n t l y e x p e r i e n c i n g a r e c e s s i o n a s e v i d e n c e d b y a n
i n c r e a s e d u n e m p l o y m e n t r a t e , a s l o w d o w n i n t o t a l p e r s o n a l i n c o m e a n d t a x a b l e s a l e s , a d r o p i n
r e s i d e n t i a l b u i l d i n g p e r m i t s , a d e c l i n e i n t h e r a t e o f h o m e s a l e s a n d t h e m e d i a n p r i c e o f s i n g l e -
f a m i l y h o m e s a n d c o n d o m i n i u m s a n d a n i n c r e a s e i n n o t i c e s o f d e f a u l t o n m o r t g a g e l o a n s s e c u r e d
b y h o m e s a n d c o n d o m i n i u m s .
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 , 1 3 9 , 5 3 5 a s o f J a n u a r y 1 , 2 0 1 0 , r e p r e s e n t i n g a 3 8 . 4 % i n c r e a s e s i n c e
t h e 2 0 0 0 C e n s u s o r a s i m p l e a n n u a l a v e r a g e o f 3 . 8 % .
T h e C o u n t y ' s p o p u l a t i o n g r e w b y o v e r h a l f a m i l l i o n s i n c e 2 0 0 0 , r a n k i n g i t a s o n e o f t h e
m a j o r g r o w t h a r e a s i n t h e n a t i o n . D u r i n g t h i s p e r i o d , n i n e c i t i e s a n d t h e u n i n c o r p o r a t e d C o u n t y
a r e a e a c h g r e w b y o v e r 2 0 , 0 0 0 p e r s o n s . T h e c i t y o f M u r r i e t a a d d e d t h e m o s t r e s i d e n t s ( o v e r
5 7 , 0 0 0 ) t o i t s p o p u l a t i o n . M u r r i e t a i s f o l l o w e d b y R i v e r s i d e ( 4 8 , 8 8 5 ) , T e m e c u l a ( 4 7 , 3 1 3 ) ,
M o r e n o V a l l e y ( 4 6 , 1 5 6 ) , I n d i o ( 3 4 , 5 5 9 ) , C o r o n a ( 2 5 , 4 5 0 ) , B e a u m o n t ( 2 2 , 8 3 3 ) , L a k e E l s i n o r e
( 2 2 , 0 5 5 ) a n d L a Q u i n t a ( 2 0 , 7 2 7 ) b y n u m b e r o f r e s i d e n t s b e i n g a d d e d t o t h e i r p o p u l a t i o n s . T h e
c i t y o f B e a u m o n t ' s p o p u l a t i o n o n a p e r c e n t a g e b a s i s i n c r e a s e d t h e m o s t s i n c e 2 0 0 0 ( 1 8 5 % ) .
S e v e r a l a r e a s i n t h e u n i n c o r p o r a t e d C o u n t y a r e a a l s o g r e w r a p i d l y . T h e s e i n c l u d e E a s t v a l e ,
T e m e s c a l C a n y o n , t h e E l S o b r a n t e / L a k e M a t h e w s / W o o d c r e s t a r e a , W i n c h e s t e r , F r e n c h V a l l e y ,
a n d t h e u n i n c o r p o r a t e d a r e a n o r t h o f I n d i o . M u c h o f t h e g r o w t h i n t h e c i t y o f M e n i f e e o c c u r r e d
d u r i n g t h i s p e r i o d w h i l e i t w a s a n u n i n c o r p o r a t e d a r e a . R e c e n t l y , t h e g r o w t h i n t h e C o u n t y h a s
s l o w e d d u e t o t h e e c o n o m y . B e t w e e n J a n u a r y 1 , 2 0 0 9 a n d J a n u a r y 1 , 2 0 1 0 , t h e C o u n t y
p o p u l a t i o n i n c r e a s e d b y 1 . 4 % . A l t h o u g h t h i s r a t e i s f a r b e l o w t h e C o u n t y a v e r a g e f o r t h e
d e c a d e , i t i s a b o v e t h e S t a t e w i d e a v e r a g e .
5 5 6 3 2 6 6 0 . 4
B - 1
7 4
The following table sets forth annual population figures as of January 1 of each year for
cities located within the County for each of the years listed:
CITY
COUNTY OF RIVERSIDE
POPULATION OF CITIES WITHIN THE COUNTY
(As of January 1)
2000 2005 2006 2007 2008 2009 2010
Banning 23,562 27,996 28,185 28,174 28,148 28,457 28,751
Beaumont 11,384 19,051 23,238 28,209 31,317 32,403 34,217
Blythe 20,465 22,052 22,234 22,608 21,627 21,329 21,812
Calimesa 7,139 7,491 7,475 7,435 7,423 7,498 7,555
Canyon Lake 9,952 10,950 10,983 10,955 10,994 11,128 11,225
Cathedral City 42,647 50,819 51,294 52,045 51,972 52,447 52,841
Coachella 22,724 30,879 35,354 38,437 40,317 41,000 42,591
Corona 124,966 144,600 145,265 145,847 146,698 148,597 150,416
Desert Hot Springs 16,582 20,820 23,459 24,856 25,939 26,552 26,811
Hemet 58,812 67,565 70,728 72,537 73,205 74,361 75,820
Indian Wells 3,816 4,796 4,885 4,934 5,000 5,093 5,144
Indio 49,116 66,358 71,949 77,046 80,962 82,230 83,675
Lake Elsinore 28,930 38,185 41,156 47,568 49,556 50,267 50,983
La Quinta 23,694 36,278 38,500 41,039 42,743 43,778 44,421
Menifee 0 0 0 0 0 67,705 68,905
Moreno Valley 142,379 165,935 175,294 180,228 182,945 186,301 188,537
Murrieta 44,282 85,328 93,221 97,031 99,576 100,714 101,487
Norco 24,157 26,783 27,355 27,329 27,143 27,160 27,370
Palm Desert 41,155 49,490 49,774 49,717 50,686 51,509 52,067
Palm Springs 42,805 45,877 46,629 46,796 47,019 47,601 48,040
Perris 36,189 44,758 47,335 50,597 53,340 54,323 55,133
Rancho Mirage 13,249 16,476 16,740 16,923 16,975 17,180 17,008
Riverside 255,166 286,563 288,984 291,812 296,191 300,430 304,051
San Jacinto 23,779 28,540 31,194 34,297 35,491 36,477 36,933
Temecula 57,716 81,681 93,673 97,141 99,873 102,604 105,029
Wildomar 0 0 0 0 0 31,321 31,907
TOTALS
Incorporated 1,124,666 1,379,271 1,444,904 1,493,561 1,525,140 1,648,465 1,672,729
Unincorporated 420,721 504,464 517 110 536.754 553 461 459,188 466,806
County -Wide 1.545,387 1,883,735 1.962,014 2,030,315 2,078 601 2.107,653 2,139,535
California 33,873,086 36,676,931 37,086,191 37,472,074 37,883,992 38,292,687 38,648,090
Source: U.S. Census Bureau for 2000, State Department of Finance, Demographic Research Unit (with 2000 DRU Benchmark)
for 2007-2010.
Effective Buying Income
"Effective Buying Income" is defined as personal income less personal tax and nontax
payments, a number often referred to as "disposable" or "after-tax" income. Personal income is
the aggregate of wages and salaries, other than labor -related income (such as employer
contributions to private pension funds), proprietor's income, rental income (which includes
imputed rental income of owner -occupants of non -farm dwellings), dividends paid by
55632660.4
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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 4 t h r o u g h 2 0 0 8 . F i g u r e s f o r 2 0 0 9 a r e n o t a v a i l a b l e .
R I V E R S I D E C O U N T Y A N D C A L I F O R N I A
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 ,
M E D I A N H O U S E H O L D E F F E C T I V E B U Y I N G I N C O M E A N D
P E R C E N T O F H O U S E H O L D S W I T H I N C O M E S O V E R $ 5 0 , 0 0 0 ( 1 )
T o t a l M e d i a n H o u s e h o l d P e r c e n t o f
E f f e c t i v e B u y i n g E f f e c t i v e B u y i n g H o u s e h o l d s w i t h
I n c o m e � I n c o m e I n c o m e o v e r $ 5 0 , 0 0 0
2 0 0 4
R i v e r s i d e C o u n t y $ 2 9 , 4 6 8 , 2 0 8 $ 4 0 , 2 7 5 3 7 . 1 %
C a l i f o r n i a 7 0 5 , 1 0 8 , 4 1 0 4 3 , 9 1 5 4 2 . 5
2 0 0 5
R i v e r s i d e C o u n t y 3 2 , 0 0 4 , 4 1 8 4 1 , 3 2 6 3 8 . 9
C a l i f o r n i a 7 2 0 , 7 9 8 , 1 2 2 4 4 , 6 8 1 4 3 . 7
2 0 0 6
R i v e r s i d e C o u n t y 3 5 , 6 5 6 , 6 2 0 4 3 , 4 9 0 4 1 . 8
C a l i f o r n i a 7 6 4 , 1 2 0 , 0 8 2 4 6 , 2 7 5 4 5 . 6
2 0 0 7
R i v e r s i d e C o u n t y 3 8 , 6 3 I , 3 6 5 4 5 , 3 1 0 4 4 . 3
C a l i f o r n i a 8 1 4 , 8 9 4 , 4 3 7 4 8 , 2 0 3 4 7 9
2 0 0 8
R i v e r s i d e C o u n t y 4 0 , 9 3 5 , 4 0 7 4 6 , 9 5 8 4 6 . 2
C a l i f o r n i a 8 3 2 , 5 3 1 , 4 4 5 4 8 , 9 5 2 4 8 . 8
S o u r c e : " S u r v e y o f B u y i n g P o w e r , " S a l e s & M a r k e t i n g M a n a g e m e n t M a g a z i n e , d a t e d 2 0 0 4 , 2 0 0 5 a n d 2 0 0 8 , a n d
D e m o g r a p h i c s U S A , T r a d e D i m e n s i o n s f o r 2 0 0 6 a n d 2 0 0 7 .
( ' ) E s t i m a t e d .
( 2 ) D o l l a r s i n t h o u s a n d s .
5 5 6 3 2 6 6 0 . 4
B - 3
7 6
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. The following.
table sets forth the annual average employment by industry for the PMSA.
RIVERSIDE-SAN BERNARDINO-ONTARIO PMSA
ANNUAL AVERAGE EMPLOYMENT BY INDUSTRY(')
(In Thousands)
INDUSTRY
2005 2006 2007 2008 2009
Agriculture 18.3 17.2 16.8 15.9 15.2
Construction 123.3 129.5 112.8 90.7 67.4
Finance, Insurance
and Real Estate 49.0 51.8 50.1 46.7 43.6
Government 220.4 224.2 225.7 229.9 227.3
Manufacturing: 121.0 124.0 118.9 106.9 88.5
Nondurables 35.0 36.4 36.4 34.3 30.4
Durables 86.1 87.6 82.5 72.5 58.1
Natural Resources
and Mining 1.4 1.4 1.4 1.2 1.2
Retail Trade 165.7 171.5 175.4 168.6 154.9
Prof., Educ. and
other Services 416.5 436.2 446.3 440.7 419.6
Trans., Whse. and
Utilities 60.2 63.8 66.7 70.2 66.5
Wholesale Trade 49.9 53.8 56.4 54.1 48.3
Information, Pub. and
Telecom. 14.5 15.7 15.2 14.9 14.8
Total, All Industries 1,240.3 1,288.4 1,285.5 1,239.7 1,147.1
Source: State Employment Development Department, Labor Market Information Division.
(1) The employment figures by Industry which are shown above are not directly comparable to the "Total, All Industries"
employment figures due to rounded data.
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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 e m p l o y m e n t d a t a c o m p a r i s o n b y i n d u s t r y f o r t h e p e r i o d
J u n e 2 0 0 8 a n d J u n e 2 0 0 9 . J u n e 2 0 1 0 f i g u r e s a r e p r e l i m i n a 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
E M P L O Y M E N T B Y I N D U S T R Y F O R J U N E 2 0 0 8 A N D J U N E 2 0 0 9 ( 1 )
( I n T h o u s a n d s )
I N D U S T R Y J u n e 2 0 0 9 J u n e 2 0 1 0 t 2 t C h a n g e
T o t a l F a r m 2 0 , 9 0 0 2 0 , 7 0 0 ( 2 0 0 )
T o t a l N o n f a r m 1 , 1 3 8 , 6 0 0 1 , 1 0 6 , 6 0 0 ( 3 2 , 0 0 0 )
M i n i n g a n d L o g g i n g 1 , 2 0 0 1 , 2 0 0 0
C o n s t r u c t i o n 6 9 , 6 0 0 5 8 , 8 0 0 ( 1 0 , 8 0 0 )
M a n u f a c t u r i n g 8 8 , 7 0 0 8 5 , 3 0 0 ( 3 , 4 0 0 )
T r a d e , T r a n s p o r t a t i o n &
U t i l i t i e s 2 6 8 , 8 0 0 2 6 2 , 9 0 0 ( 5 , 9 0 0 )
I n f o r m a t i o n 1 4 , 9 0 0 1 4 , 4 0 0 ( 5 0 0 )
F i n a n c i a l A d v i s o r 4 3 , 3 0 0 4 1 , 8 0 0 ( 1 , 5 0 0 )
P r o f e s s i o n a l & B u s i n e s s
S e r v i c e s 1 2 6 , 7 0 0 1 2 4 , 8 0 0 ( 1 , 9 0 0 )
E d u c a t i o n a l & H e a l t h
S e r v i c e s 1 3 2 , 3 0 0 1 3 2 , 2 0 0 ( 2 0 0 )
L e i s u r e & H o s p i t a l i t y 1 2 4 , 1 0 0 1 1 9 , 9 0 0 ( 4 , 2 0 0 )
O t h e r S e r v i c e s 3 7 , 6 0 0 3 6 , 3 0 0 ( 1 , 2 0 0 )
G o v e r n m e n t 2 3 1 , 5 0 0 2 2 9 , 1 0 0 ( 2 , 4 0 0 )
T o t a l A l l I n d u s t r i e s 1 , 1 5 9 , 5 0 0 1 , 1 2 7 , 3 0 0 ( 3 2 , 2 0 0 )
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 .
( ' ) D a t a n o t a d j u s t e d f o r s e a s o n a l i t y . 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 .
( 2 ) 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 .
5 5 6 3 2 6 6 0 . 4
B - 5
7 8
The following table sets forth certain of the ten major employers located in the County as
of 2008:
COUNTY OF RIVERSIDE
CERTAIN MAJOR EMPLOYERS(1)
(2010)
No. of Local
Company Name Product/Service Employees(2)
County of Riverside County Government 18,456
March Air Reserve Base Government/Military 8,600
University of California, Riverside Education Institution 7,321
Stater Brothers Markets Supermarket Retailer 6,900
Wal-Mart Retail Store 6,550
Riverside Unified School District School District 5,099
Abbott Vascular Medical & Biotech Manufacturer 4,500
Pechanga Resort & Casino Casino/Resort 4,000
Kaiser Permanente Riverside Medical Center Healthcare 3,600
Temecula Valley Unified School District School District 2,752
Source: The Business Press 2010 Book of Lists.
10 Certain major employers in the County may have been excluded because of the data collection methodology used by The
Business Press.
(z) 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, STATE AND NATIONAL UNEMPLOYMENT DATA
March
2005 2006 2007 2008 2009 2010
County(I) 5.4% 5.0% 6.0% 8.5% 13.6% 15.1%121
California(I) 5.4 4.9 5.3 7.2 11.4 13.0(2)
United States 5.1 4.6 4.6 5.8 9.3 9.7131
Source: State of California Employment Development Department Labor Market Information Division; U.S. Bureau of Labor
Statistics.
(I) Data are not seasonally adjusted.
z) Preliminary.
(3) Data are seasonally adjusted.
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
55632660.4
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79
"
c o m m e r c i a l c e n t e r s i n c i t i e s . T h e r e a r e f i v e r e g i o n a l s h o p p i n g m a l l s i n t h e C o u n t y : G a l l e r i a a t
T y l e r ( R i v e r s i d e ) , H e m e t V a l l e y M a l l , W e s t f i e l d P a l m D e s e r t S h o p p i n g C e n t e r , M o r e n o V a l l e y
M a l l , a n d T h e P r o m e n a d e i n T e m e c u l a . T h e r e a r e a l s o 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 a x a b l e S a l e s T r a n s a c t i o n s
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 4
t h r o u g h 2 0 0 8 . F i g u r e s f o r 2 0 0 9 a r e u n a v a i l a b l e . [ U P D A r E W H E N A V A I L A B L E ]
T y p e s o f B u s i n e s s
A p p a r e l S t o r e s
G e n e r a l M e r c h a n d i s e S t o r e s
D r u g S t o r e s
F o o d S t o r e s
P a c k a g e d L i q u o r S t o r e s
E a t i n g a n d D r i n k i n g P l a c e s
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
B u i l d i n g M a t e r i a l s a n d
F a r m I m p l e m e n t s
A u t o D e a l e r s S u p p l i e s
S e r v i c e S t a t i o n s
O t h e r R e t a i l S t o r e s
R e t a i l S t o r e s T o t a l
A l l O t h e r O u t l e t s
T o t a l A l l O u t l e t s
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 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8
$ 8 6 7 , 2 7 6 $ 9 9 0 , 1 2 9 $ 1 , 0 8 0 , 3 8 5 $ 1 , 1 7 1 , 1 0 3 $ 1 , 1 2 1 , 5 4 3
2 , 7 5 6 , 0 1 9 3 , 0 2 1 , 9 0 8 3 , 2 5 0 , 3 7 7 3 , 2 7 2 , 6 6 5 3 , 0 8 1 , 9 8 9
2 7 0 , 3 1 6 2 8 2 , 5 6 6 3 0 3 , 1 7 7 3 2 0 , 4 6 9 3 0 7 , 9 4 7
1 , 0 7 9 , 9 7 2 1 , 1 9 7 , 4 3 8 1 , 3 0 9 , 7 8 2 1 , 3 5 2 , 6 0 9 1 , 2 5 4 , 3 6 6
9 8 , 3 3 8
1 , 9 4 0 , 6 1 0 2 , 1 5 7 , 8 0 1 2 , 3 1 6 , 4 2 2 2 , 3 3 8 , 0 3 9 2 , 3 4 0 , 5 5 4
8 6 2 , 5 5 1 9 6 4 , 6 2 9 9 4 8 , 2 1 7 8 4 3 , 9 4 5 8 1 6 , 3 7 9
2 , 4 7 6 , 0 9 2 2 , 7 5 6 , 2 8 0 2 , 7 3 8 , 1 5 3 1 , 9 6 1 , 9 1 1 1 , 4 3 5 , 3 3 7
4 , 1 7 9 , 9 4 0 4 , 4 7 4 , 5 6 6 4 , 3 2 6 , 0 4 0 4 , 3 0 1 , 3 8 5 3 , 1 1 5 , 0 3 6
1 , 8 5 5 , 2 6 3 . 2 , 2 7 7 , 0 8 2 2 , 6 3 0 , 7 1 6 2 , 8 3 5 , 6 9 0 3 , 0 1 1 , 4 7 6
2 , 3 6 1 , 1 8 2 2 , 6 4 1 , 9 8 5 2 , 8 6 0 , 1 8 1 2 , 7 9 4 , 7 9 0 2 , 1 0 6 , 2 8 3
$ 1 8 , 7 1 5 , 9 4 9 $ 2 0 , 8 3 9 , 2 1 2 $ 2 1 , 8 4 2 , 3 4 5 $ 2 1 , 2 4 2 , 5 1 6 $ 1 8 , 6 8 9 , 2 4 9
6 , 5 2 1 , 1 9 9 7 , 4 1 7 , 2 7 9 7 , 9 7 3 , 8 9 2 7 , 7 8 1 , 0 9 3 7 , 3 1 4 , 3 4 6
$ 2 5 , 2 3 7 , 1 4 8 $ 2 8 , 2 5 6 , 4 9 1 $ 2 9 , 8 1 6 , 2 3 7 $ 2 9 , 0 2 3 , 6 0 9 $ 2 6 , 0 0 3 , 5 9 5
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 .
5 5 6 3 2 6 6 0 . 4
B - 7
8 0
The following table sets forth taxable transactions in the County for first and second
quarters of 2009. Annual 2009 figures unavailable.
Type of Business
COUNTY OF RIVERSIDE
2009 TAXABLE SALES TRANSACTIONSttI
(In Thousands)
First Quarter Second Quarter
Motor Vehicle and Parts $612,423 $578,498
Furniture and home Furnishings 95,591 89,081
Electronics and Appliances 123,541 107,051
Bldg. and Garden Materials and Supplies 312,372 328,421
Food and Beverage Stores 298,034 329,766
Health and Personal Care 97,084 97,305
Gasoline Stations 478,046 596,811
Clothing and Accessories 299,946 313,286
Sporting Goods, Books and Music 107,324 93,058
General Merchandise 652,330 686,307
Miscellaneous 165,573 161,569
Nonstore Retailers 25,605 25,299
Food Services and Drinking Places 611,236 586,051
Total Retail and Food Services 3,879,106 3,965,502
All Other Outlets 1,567,104 1,547,852
Total All Outlets
$5,446,210 $5,513,354
Source: California State Board of Equalization, Research and Statistics Division.
t1t The taxable transaction figures by industry which are shown above may not be directly comparable to the "Total, All
Outlets" figures due to rounded data. The categories for "Types of Business" are different from those in the prior table
which sets forth taxable transactions in the County for the years 2004 through 2008.
55632660.4 B-8
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"
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 f o l l o w i n g t a b l e s s e t f o r t h f i v e - y e a r s u m m a r i e s 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 ) f o r t h e
y e a r s 2 0 0 5 t h r o u g h 2 0 0 9 .
C O U N T Y O F R I V E R S I D E
B U I L D I N G P E R M I T V A L U A T I O N S
( I n T h o u s a n d s )
2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9
R E S I D E N T I A L
N e w S i n g l e - F a m i l y $ 6 , 2 4 3 , 7 9 0 $ 4 , 4 1 2 , 2 5 7 $ 2 , 2 0 7 , 5 2 0 $ 1 , 2 1 4 , 7 5 2 $ 8 9 1 , 8 2 5
N e w M u l t i - F a m i l y 4 0 7 , 4 2 9 4 3 1 , 5 7 9 2 3 8 , 3 1 6 2 4 3 , 7 4 1 7 6 , 7 1 7
A l t e r a t i o n s a n d A d j u s t m e n t s 1 6 4 , 3 1 2 1 5 8 . 0 9 8 1 4 1 , 9 9 6 1 1 8 , 4 9 0 8 5 , 1 4 8
T o t a l R e s i d e n t i a l $ 6 , 8 1 5 , 5 3 1 $ 5 , 0 0 1 , 9 3 4 $ 2 , 5 8 7 , 8 3 2 $ 1 , 5 7 6 , 9 8 3 $ 1 , 0 5 3 , 6 9 0
N O N - R E S I D E N T I A L
N e w C o m m e r c i a l $ 5 5 2 , 6 6 5 $ 6 4 8 , 0 6 8 $ 6 8 2 , 3 3 1 $ 5 3 9 , 9 4 4 $ 9 4 , 6 5 3
N e w I n d u s t r y 1 2 0 , 3 6 6 2 8 8 , 3 5 3 1 8 4 , 5 0 6 7 0 , 4 1 1 1 2 , 2 7 8
N e w O t h e r i 1 1 3 4 4 , 7 0 2 2 9 0 , 0 1 0 2 4 0 , 7 6 5 1 3 8 , 7 6 6 1 0 7 , 3 3 4
A l t e r a t i o n s & A d j u s t m e n t s 2 7 4 , 3 3 9 3 0 3 . 4 0 7 3 5 0 , 5 3 9 2 9 2 , 6 9 4 1 6 2 , 5 5 7
T o t a l N o n r e s i d e n t i a l $ 1 , 2 9 2 , 0 7 2 $ 1 , 5 2 9 , 8 3 8 $ 1 , 4 5 8 , 1 4 1 $ 1 , 0 4 1 , 8 1 5 $ 3 7 6 , 8 2 2
T O T A L A L L B U I L D I N G $ 8 , M 7 , 6 0 3 S 6 , 5 3 1 , 7 7 2 S 4 , 0 4 5 , 9 7 3 S 2 , 6 1 8 , 7 9 8 $ 1 , 4 3 0 , 5 1 2
S o u r c e : C o n s t r u c t i o n I n d u s t r y R e s e a r c h B o a r d .
I n c l u d e s c h u r c h e s a n d r e l i g i o u s b u i l d i n g s , h o s p i t a l s a n d i n s t i t u t i o n a l b u i l d i n g s , s c h o o l s a n d e d u c a t i o n a l b u i l d i n g s , r e s i d e n t i a l
g a r a g e s , p u b l i c w o r k s a n d u t i l i t i e s b u i l d i n g s a n d n o n - r e s i d e n t i a l a l t e r a t i o n s a n d a d d i t i o n s .
C O U N T Y O F R I V E R S I D E
N U M B E R O F N E W D W E L L I N G U N I T S
2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9
S i n g l e F a m i l y 2 9 , 9 9 4 2 0 , 6 9 2 9 , 7 6 3 3 , 8 1 5 3 , 4 2 4
M u l t i - F a m i l y 4 , 1 4 0 4 , 5 1 9 2 , 6 9 0 2 2 1 0 4 7 8 4
T O T A L 3 4 , 1 3 4 2 5 , 2 1 1 1 2 , 4 4 3 5 , 9 1 9 4 , 2 0 8
S o u r c e : C o n s t r u c t i o n I n d u s t r y R e s e a r c h B o a r d .
5 5 6 3 2 6 6 0 . 4
B - 9
8 2
The following table sets forth a comparison of median housing prices for Los Angeles
County, Riverside County and Southern California as of March 2009 and March 2010.
COUNTY OF RIVERSIDE
COMPARISON OF MEDIAN HOUSING PRICES
March March Percent
2009 2010 Change
County of Riverside $187,000 $198,000 5.9%
Los Angeles County 300,000 329,000 9.7%
Southern California(1) 250,000 285,000 14.0%
Source: MDA DataQuick Information Systems.
(1) Southem California comprises Los Angeles, Orange, San Diego, Riverside, San Bernardino and Ventura Counties.
The following table sets forth a comparison of home and condominium foreclosures
recorded in Los Angeles County, Riverside County, San Bernardino County and Southern
California for the years and quarters indicated.
Year
2005
2006
2007
2008
2009
COUNTY OF RIVERSIDE
COMPARISON OF HOME FORECLOSURES
San
Los Angeles Riverside Bernardino
585
1,997
12,466
35,366
30,285
304
1,778
12,497
32,423
25,500
402
1,011
7,746
23,557
19,714
Southern
California")
1,702
7,355
46,086
125,056
100,970
Source: MDA DataQuick Information Systems.
(I) Southem California comprises Los Angeles, Orange, San Diego, Riverside, San Bernardino and Ventura Counties.
12) First two quarters of 2009.
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
eastem border. The value of agricultural production in the County for the years 2005 through
2009 is set forth in the following table.
55632660.4
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83
Citrus Fruits
Trees and Vines
Vegetables, Melons, Mi
Field and Seed Crops
Nursery
Apiculture
Aquaculture Products
Total Crop Valuation
Livestock and Poultry
Valuation
Grand Total
Se.
COUNTY OF RIVERSIDE
VALUE OF AGRICULTURAL PRODUCTION
2005 2006
$ 138,244,700
188,553,200
261,019,500
77,687,300
229,210,200
2,736,800
13,367,300
$ 910,819,000
$ 107,897,000
191,321,200
213,643,300
68,611,700
270,992,800
3,554,300
13,367,300
$ 869,387,600
257,852,100 234,903,400
$1,168,671,100 $1,104,291,000
Source: Riverside County Agricultural Commissioner.
Transportation
2007
$ 121,387,100
189,286,500
234,854,700
94,492,000
272,326,200
3,948,900
9,829,200
$ 926,124,600
338,938,600
$1,265,063,200
2008
$ 135,759,000
173,678,000
266,414,900
123,545,400
230,416,200.
5,637,000
12,077,700
$ 947,529,000
321,060,000
$1,268,589,900
2009
$ 101,652,000
191,682,600
221,286,700
69,699,800
206,499,900
5,017,600
5 243,900
$ 801,082,500
214,672,800
$1,015,755,300
Several major freeways and highways provide access between the County and all parts of
Southern California. The Riverside Freeway (State Route 91) extends southwest through Corona
and connects with the Orange County freeway network in Fullerton. Interstate 10 traverses the
width of the County, the western -most portion of which links up with major cities and freeways
in the southern part of San Bernardino County with the eastern part linking to the County's
Desert cities and Arizona. Interstates 15 and 215 extend north and then east to Las Vegas, and
south to San Diego. State Route 60 provides an alternate (to Interstate 10) east -west link to Los
Angeles County.
Currently, Metrolink provides commuter rail service to Los Angeles, San Bernardino and
Orange Counties from several stations in the County. Transcontinental passenger rail service is
provided by Amtrak with stops in Riverside and Indio. Freight service to major west coast and
national markets is provided by three transcontinental railroads Union Pacific Railroad,
Burlington Northern and Santa Fe Railway Company. Truck service is provided by several
common carriers, making available overnight delivery service to major California cities.
Transcontinental bus service is provided by Greyhound Lines. Intercounty, intercity and
local bus service is provided by the Riverside Transit Agency to western County cities and
communities. There are also four municipal transit operators in the western County providing
services within the cities of Banning, Beaumont, Corona and Riverside. The SunLine Transit
Agency provides local bus service throughout the Coachella Valley, including the cities of Palm
Springs and Indio. The Palo Verde Valley Transit Authority provided service in the far eastern
portion of the County (City of Blythe and surrounding communities).
The County seat, located in the City of Riverside, is within 20 miles of the Ontario
International Airport in neighboring San Bernardino County. This airport is operated by the Los
Angeles Department of Airports. Four major airlines schedule commercial flight service at Palm
Springs Regional Airport. County -operated general aviation airports include those in Thermal,
I lemet, Blythe and French Valley. The cities of Riverside, Corona and Banning also operate
55632660.4
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84
general aviation airports. There is a military base at March Air Reserve Base, which converted
from an active duty base to a reserve -only base on April 1, 1996. Plans for joint military and
civilian use of the base thereafter are presently being formulated by the March AFB Joint Powers
Authority, comprised of the County and the Cities of Riverside, Moreno Valley and Perris.
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 at Riverside, La Sierra University and California Baptist University.
556326604
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5 5 6 3 2 6 6 0 4
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
8 6
87
"
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 i n t h i s A p p e n d i x D c o n c e r n i n g 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 , N e w
Y o r k , N e w Y o r k ( " D T C ' ) , a n d D T C ' s B o o k - E n t r y S y s t e m h a s b e e n o b t a i n e d f r o m D T C a n d 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 U n d e r w r i t e r s t a k e n o r e s p o n s i b i l i t y f o r t h e c o m p l e t e n e s s o r
a c c u r a c y t h e r e 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 a n d t h e U n d e r w r i t e r s c a n n o t a n d d o n o t g i v e a n y
a s s u r a n c e s t h a t D T C , D T C P a r t i c i p a n t s o r I n d i r e c t P a r t i c i p a n t s o r o t h e r s w i l l d i s t r i b u t e a n y
( a ) p a y m e n t s o f 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 r i n t e r e s t w i t h r e s p e c t t o t h e 2 0 1 0 B o n d s ,
( b ) c e r t i f i c a t e s r e p r e s e n t i n g o w n e r s h i p i n t e r e s t i n o r o t h e r c o n f i r m a t i o n o r o w n e r s h i p i n t e r e s t i n
t h e 2 0 1 0 B o n d s , o r ( c ) r e d e m p t i o n o r o t h e r n o t i c e s s e n t t o D T C o r C e d e & C o . , i t s n o m i n e e , a s
t h e r e g i s t e r e d o w n e r o f t h e 2 0 1 0 B o n d s , o r t h a t t h e y w i l l d o s o o n a t i m e l y b a s i s , o r t h a t D T C ,
D T C P a r t i c i p a n t s o r D T C I n d i r e c t P a r t i c i p a n t s w i l l a c t i n t h e m a n n e r d e s c r i b e d i n t h i s
A p p e n d i x D . T h e c u r r e n t " R u l e s " a p p l i c a b l e t o D T C 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 a n d t h e c u r r e n t " P r o c e d u r e s " o f D T C t o b e f o l l o w e d i n d e a l i n g w i t h 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 D T C . 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 U n d e r w r i t e r s a r e n o t
r e s p o n s i b l e o r l i a b l e f o r t h e f a i l u r e o f D T C o r a n y D T C P a r t i c i p a n t t o m a k e a n y p a y m e n t o r g i v e
a n y n o t i c e t o a b e n e f i c i a l o w n e r w i t h r e s p e c t t o t h e 2 0 1 0 B o n d s o r a n e r r o r o r d e l a y r e l a t i n g
t h e r e t o .
D T C w i l l a c t a s 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 2 0 1 0 B o n d s . T h e 2 0 1 0 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 s e c u r i t i e s 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 . ( D T C ' s p a r t n e r s h i p n o m i n e e )
o r s u c h o t h e r n a m e a s m a y b e r e q u e s 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 o f D T C . O n e f u l l y -
r e g i s t e r e d c e r t i f i c a t e w i l l b e i s s u e d f o r e a c h m a t u r i t y o f t h e 2 0 1 0 B o n d s , 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 s u c h m a t u r i t y , a n d w i l l b e d e p o s i t e d w i t h D T C .
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 a n d p r o v i d e s a s s e t s e r v i c i n g f o r o v e r 3 . 5
m i l l i o n i s s u e s o f U . S . a n d n o n - U . S . e q u i t y i s s u e s , c o r p o r a t e a n d m u n i c i p a l d e b t i s s u e s , a n d
m o n e y m a r k e t i n s t r u m e n t s ( f r o m o v e r 1 0 0 c o u n t r i e s ) t h a t D T C ' s p a r t i c i p a n t s ( " D i r e c t
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 p o s t - t r a d e s e t t l e m e n t a m o n g D i r e c t
P a r t i c i p a n t s o f s a l e s a n d o t h e r s e c u r i t i e s t r a n s a c t i o n 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 t r a n s f e r s a n d p l e d g e s b e t w e e n D i r e c t P a r t i c i p a n t s ' a c c o u n t s . T h i s
e l i m i n a t e s 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 i r e c t P a r t i c i p a n t s i n c l u d e
b o t h U . S . a n d n o n - U . 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 , 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 a w h o l l y - o w n e d s u b s i d i a r y o f T h e
D e p o s i t o r y T r u s t & C l e a r i n g C o r p o r a t i o n ( " D T C C " ) . D T C C i s t h e h o l d i n g c o m p a n y f o r D T C ,
N a t i o n a l S e c u r i t i e s C l e a r i n g C o r p o r a t i o n a n d F i x e d I n c o m e C l e a r i n g C o r p o r a t i o n , a l l o f w h i c h
a r e r e g i s t e r e d c l e a r i n g a g e n c i e s . D T C C i s o w n e d b y t h e u s e r s o f i t s r e g u l a t e d s u b s i d i a r i e s .
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 b o t h U . S . a n d n o n - U . 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 , t r u s t c o m p a n i e s , a n d c l e a r i n g c o r p o r a t i o n s t h a t c l e a r t h r o u g h o r
5 5 6 3 2 6 6 0 . 4
D - I
8 8
maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect
Participants"). DTC has Standard & Poor's highest rating: AAA. The DTC Rules applicable to
its Participants are on file with the Securities and Exchange Commission. More information
about DTC can be found at www.dtcc.com and www.dtc.org. The information set forth on such.
websites is not incorporated by reference.
Purchases of 2010 Bonds under the DTC system must be made by or through Direct
Participants, which will receive a credit for the 2010 Bonds on DTC's records. The ownership
interest of each actual purchaser of each 2010 Bond ("Beneficial Owner") is in turn to be
recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive
written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to
receive written confirmations providing details of the transaction, as well as periodic statements
of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner
entered into the transaction. Transfers of ownership interests in the 2010 Bonds are to be
accomplished by entries made on the books of Direct and Indirect Participants acting on behalf
of Beneficial Owners. Beneficial Owners will not receive certificates representing their
ownership interests in the 2010 Bonds, except in the event that use of the book -entry system for
the 2010 Bonds is discontinued.
To facilitate subsequent transfers, all 2010 Bonds deposited by Direct Participants with
DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other name
as may be requested by an authorized representative of DTC. The deposit of the 2010 Bonds
with DTC and their registration in the name of Cede & Co. or such other DTC nominee do not
effect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial
Owners of the 2010 Bonds; DTC's records reflect only the identity of the Direct Participants to
whose accounts such 2010 Bonds are credited, which may or may not be the Beneficial Owners.
The Direct and Indirect Participants will remain responsible for keeping account of their
holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by
Direct Participants to Indirect Participants, and by Direct Participants and 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. Beneficial Owners of the 2010
Bonds may wish to take certain steps to augment the transmission to them of notices of
significant events with respect to the 2010 Bonds, such as redemptions, tenders, defaults, and
proposed amendments to the 2010 Bond documents. For example, Beneficial Owners of the
20] 0 Bonds may wish to ascertain that the nominee holding the 2010 Bonds for their benefit has
agreed to obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners
may wish to provide their names and addresses to the registrar and request that copies of notices
be provided directly to them.
55632660.4
D-2
•
89
"
"
R e d e m p t i o n n o t i c e s s h a l l b e s e n t t o D T C . I f l e s s t h a n a l l o f t h e 2 0 1 0 B o n d s a r e b e i n g
r e d e e m e d , 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 i r e c t
P a r t i c i p a n t i n s u c h i s s u e t o b e r e d e e m e d . '
N e i t h e r D T C n o r C e d e & C o . ( n o r a n y o t h e r D T C n o m i n e e ) w i l l c o n s e n t o r v o t e w i t h
r e s p e c t t o t h e 2 0 1 0 B o n d s u n l e s s a u t h o r i z e d b y a D i r e c t P a r t i c i p a n t i n a c c o r d a n c e w i t h D T C ' s
M M I P r o c e d u r e s . U n d e r i t s u s u a l p r o c e d u r e s , D T C m a i l s a n O m n i b u s P r o x y t o t h e C o m m i s s i o n
a s s o o n a s p o s s i b l e a f t e r t h e r e c o r d d a t e . T h e O m n i b u s P r o x y a s s i g n s C e d e & C o . ' s c o n s e n t i n g
o r v o t i n g r i g h t s t o t h o s e 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 t h e 2 0 1 0 B o n d s a r e c r e d i t e d o n
t h e r e c o r d d a t e ( i d e n t i f i e d i n a l i s t i n g a t t a c h e d t o t h e O m n i b u s P r o x y ) .
P a y m e n t s o f 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 a n d i n t e r e s t o n t h e 2 0 1 0 B o n d s w i l l b e m a d e
t o C e d e & C o . , o r s u c h o t h e r n o m i n e e a s m a y b e r e q u e s 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 o f
D T C . D T C ' s p r a c t i c e i s t o c r e d i t D i r e c t P a r t i c i p a n t s ' a c c o u n t s u p o n D T C ' s r e c e i p t o f f u n d s a n d
c o r r e s p o n d i n g d e t a i l i n f o r m a t i o n f r o m 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 , o n p a y a b l e d a t 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 h o l d i n g s s h o w n o n D T C ' s r e c o r d s . P a y m e n t s b y 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 w i l l b e g o v e r n e d b y s t a n d i n g i n s t r u c t i o n s a n d c u s t o m a r y p r a c t i c e s , a s i s t h e
c a s e w i t h s e c u r i t i e s h e l d f o r t h e a c c o u n t s o f c u s t o m e r s i n b e a r e r f o r m o r r e g i s t e r e d i n " s t r e e t
n a m e , " a n d w i l l b e t h e r e s p o n s i b i l i t y o f s u c h P a r t i c i p a n t a n d n o t o f D T C , 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 , s u b j e c t t o a n y s t a t u t o r y o r r e g u l a t o r y r e q u i r e m e n t s a s m a y b e i n e f f e c t f r o m t i m e t o
t i m e . P a y m e n t o f p r i n c i p a l o f , p r e m i u m , i f a n y , a n d i n t e r e s t e v i d e n c e d b y t h e 2 0 1 0 B o n d s t o
C e d e & C o . ( o r s u c h o t h e r n o m i n e e a s m a y b e r e q u e s 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 o f
D T C ) i s t h e r e s p o n s i b i l i t y 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 , d i s b u r s e m e n t o f s u c h p a y m e n t s t o
D i r e c t P a r t i c i p a n t s w i l l b e t h e r e s p o n s i b i l i t y o f D T C , a n d d i s b u r s e m e n t o f s u c h 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 w i l l b e t h e r e s p o n s i b i l i t y o f D i r e c t a n d I n d i r e c t P a r t i c i p a n t s .
D T C m a y d i s c o n t i n u e p r o v i d i n g i t s s e r v i c e s a s d e p o s i t o r y w i t h r e s p e c t t o t h e 2 0 1 0 B o n d s
a t a n y t i m e b y g i v i n g r e a s o n a b l e n o t i c e t o 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 . U n d e r s u c h
c i r c u m s t a n c e s , i n t h e e v e n t t h a t a s u c c e s s o r d e p o s i t o r y i s n o t o b t a i n e d , s e c u r i t y c e r t i f i c a t e s a r e
r e q u i r e d t o b e p r i n t 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 m a y d e c i d e t o d i s c o n t i n u e u s e o f t h e s y s t e m o f b o o k - e n t r y - o n l y
t r a n s f e r s t h r o u g h D T C ( o r 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 ) . I n t h a t e v e n t , s e c u r i t y c e r t i f i c a t e s
w i l l b e p r i n t e d a n d d e l i v e r e d t o D T C .
' B y w r i t t e n n o t i c e o f t h e T r u s t e e , D T C w i l l m o d i f y i t s p r a c t i c e a n d o b s e r v e a p r o r a t a r e d u c t i o n o f
p r i n c i p a l w i t h r e s p e c t t o t h e 2 0 1 0 S e r i e s B B o n d s .
5 5 6 3 2 6 6 0 4
D - 3
9 0
"
"
9 1
556326604
APPENDIX E
PROPOSED FORM OF BOND COUNSEL OPINION
E-1
92
"
"
9 3
"
5 5 6 3 2 6 6 0 . 4
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 A G R E E M E N T
F - 1
9 4
"
9 5
"
F u l b r i g h t & J a w o r s k i L . L . P . D r a f t 8 / 1 7 / 1 0
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
b y a n d b e t w e 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
a n d
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 I O N , L . L . C . ,
a s D i s s e m i n a t i o n A g e n t
D a t e d a s o f N o v e m b e r 1 , 2 0 1 0
R e l a t i n g 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
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 1 0 S e r i e s A ( T a x - E x e m p t )
a n d 2 0 1 0 S e r i e s B ( T a x a b l e B u i l d A m e r i c a B o n d s )
9 0 1 4 1 0 8 4 3
F - 1
9 6
"
9 7
"
"
"
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 I S 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 i s " D i s c l o s u r e A g r e e m e n t " ) ,
d a t e d a s o f N o v e m b e r 1 , 2 0 1 0 , i s b y a n d 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 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 i o n , L . L . C . ,
a s 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 " ) .
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 h a s i s s u 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 1 0 S e r i e s A ( T a x - E x e m p t ) ( t h e
" 2 0 1 0 S e r i e s A B o n d s " ) a n 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 1 0 S e r i e s B ( T a x a b l e B u i l d A m e r i c a B o n d s ) ( t h e
" 2 0 1 0 S e r i e s B B o n d s " a n d , t o g e t h e r w i t h t h e 2 0 1 0 S e r i e s A B o n d s , t h e " 2 0 1 0 B o n d s " ) 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 , 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 , a s t r u s t e e ( t h e " T r u s t e e " ) , a s s u p p l e m e n t e d , i n c l u d i n g a s s u p p l e m e n t e d b y a T h i r d
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 N o v e m b e r 1 , 2 0 1 0 , 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 ( c o l l e c t i v e l y , t h e " I n d e n t u r e " ) ; a n d
W H E R E A S , t h i s D i s c l o s u r e A g r e e m e n t 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 a n d t h e D i s s e m i n a t i o n A g e n t 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 2 0 1 0 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 u n d e r w r i t e r s o f t h e 2 0 1 0 B o n d s i n c o m p l y i n g w i t h t h e
R u l e ( a s d e f i n e d h e r e i n ) ;
N O W , T H E R E F O R E , f o r a n d i n c o n s i d e r a t i o n o f t h e m u t u a l p r o m i s e s a n d c o v e n a n t s
h e r e i n c o n t a i n e d , t h e p a r t i e s h e r e t o a g r e e a s f o l l o w s :
S e c t i o n 1 . D e f i n i t i o n s . C a p i t a l i z e d u n d e f i n e d t e r m s u s 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 c r i b e d t h e r e t o i n t h e I n d e n t u r e . I n a d d i 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 " m e a n s 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 2 a n d 3 o f t h i s D i s c l o s u r e A g r e e m e n t .
" D i s c l o s u r e R e p r e s e n t a t i v e " m e a n 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 o f t h e C o m m i s s i o n , o r
s u c h o t h e r o f f i c e r 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 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
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 s h a l l d e s i g n a t e i n w r i t i n g t o t h e D i s s e m i n a t i o n
A g e n t a n d t h e T r u s t e e f r o m t i m e t o t i m e .
" D i s s e m i n a t i o n A g e n t " m e a n s 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 i o n , L . L . C .
" L i s t e d E v e n t s " m e a n s a n y o f t h e e v e n t s l i s t e d i n s u b s e c t i o n ( a ) o f S e c t i o n 4 h e r e o f .
" M S R B " m e a n s 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 .
9 0 1 4 1 0 8 4 . 3
F - 2
9 8
"Participating Underwriters" means the underwriters of the 2010 Bonds required to
comply with the Rule in connection with the offering of the 2010 Bonds.
"Repository" means, until otherwise designated by the Securities and Exchange.
Commission, the Electronic Municipal Market Access website of the MSRB located at
http://emma.msrb.org.
"Rule" means Rule 15c2-12 adopted by the Securities and Exchange Commission under
the Securities Exchange Act of 1934, as the same may be amended from time to time.
Section 2. Provisions of Annual Reports.
(a) The Commission shall, or shall cause the Dissemination Agent to, not later
than nine (9) months after the end of each Fiscal Year, commencing with the report for
the Commission's fiscal year ended June 30, 2010, provide to each Repository copies of
an Annual Report which is consistent with the requirements of Section 4 of this
Disclosure Agreement. 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 Agreement; provided that the
audited financial statements of the Commission may be submitted separately from the
balance of the Annual Report and later than the date required above for the filing of the
Annual Report if they are not available by that date. If the Fiscal Year changes for the
Commission, the Commission shall give notice of such change in the manner provided
under Section 4 (f) hereof.
(b) Not later than two (2) Business Days prior to the date specified in
subsection (a) for providing the Annual Report to each Repository, the Commission shall
provide the Annual Report to the Dissemination Agent. If by such date, the
Dissemination Agent has not received a copy of the Annual Report from the
Commission, the Dissemination Agent shall contact the Commission to determine if the
Commission is in compliance with the first sentence of subsection (a).
(c) If the Dissemination Agent is unable to verify that an Annual Report of
the Commission has been provided to each Repository by the date required in subsection
(a), the Dissemination Agent shall send a notice to each Repository in substantially the
form attached hereto as Exhibit A.
(d) If the Annual Report is delivered to the Dissemination Agent for filing, the
Dissemination Agent shall: (i) determine each year, prior to the date for providing the
Annual Report, the name and address of each Repository, and file the Annual Report so
provided therewith; and (ii) upon verification of filing, file a report with the Commission
and (if the Dissemination Agent is not the Trustee) the Trustee certifying that the Annual
Report has been provided pursuant to the Disclosure Agreement, stating the date it was
provided and listing the Repository or Repositories to which it was provided.
90141084.3
F-3
•
99
"
"
S e c t i o n 3 . C o n t e n t o f A n n u a l R e p o r t s . T h e C o m m i s s i o n ' s A n n u a l R e p o r t s h a l l
c o n t a i n o r i n c l u d e b y r e f e r e n c e t h e f o l l o w i n g :
( 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 2 ( 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 , 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 ) T h e d e b t s e r v i c e s c h e d u l e f o r t h e 2 0 1 0 B o n d s , i f t h e r e h a v e b e e n a n y
u n s c h e d u l e d r e d e m p t i o n s , r e t i r e m e n t s o r d e f e a s a n c e s , a n d t h e d e b t s e r v i c e o n a n y
a d d i t i o n a l p a r i t y b o n d s i s s u e d , i n e a c h c a s e d u r i n g t h e p r i o r F i s c a l Y e a r .
( c ) T h e a c t u a l S a l e s T a x R e v e n u e s f o r t h e p r i o r F i s c a l Y e a r c o n s i s t e n t w i t h
t h e i n f o r m a t i o n c o n c e r n i n g 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 , " 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 n u p d a t e o f 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 S a l e s T a x R e c e i p t 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 - S a l e s T a x R e c e i p t 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 S a l e s T a x
R e c e i p t 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 o f t h e C o m m i s s i o n o r p u b l i c e n t i t i e s
r e l a t e d t h e r e t o , w h i c h h a v e b e e n s u b m i t t e d t o e a c h R e p o s i t o r y 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 S R B . 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 .
T h e c o n t e n t s , p r e s e n t a t i o n a n d f o r m a t o f t h e A n n u a l R e p o r t s m a y b e m o d i f i e d f r o m t i m e
t o t i m e a s d e t e r m i n e d i n t h e j u d g m e n t o f t h e C o m m i s s i o n t o c o n f o r m t o c h a n g e s i n a c c o u n t i n g o r
d i s c l o s u r e p r i n c i p l e s o r p r a c t i c e s a n d l e g a l r e q u i r e m e n t s f o l l o w e d b y o r a p p l i c a b l e t o t h e
C o m m i s s i o n o r t o r e f l e c t c h a n g e s i n t h e b u s i n e s s , s t r u c t u r e , o p e r a t i o n s , l e g a l f o r m o f t h e
C o m m i s s i o n o r a n y m e r g e r s , c o n s o l i d a t i o n s , a c q u i s i t i o n s o r d i s p o s i t i o n s m a d e b y o r a f f e c t i n g t h e
C o m m i s s i o n ; p r o v i d e d t h a t a n y s u c h m o d i f i c a t i o n s 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 o f t h e
R u l e .
S e c t i o n 4 . 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 , 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 2 0 1 0 B o n d s , i f m a t e r i a l :
9 0 1 4 1 0 8 4 3
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 .
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 .
F - 4
1 0 0
(3) Unscheduled draws on debt service reserves reflecting financial
difficulties.
(4) Unscheduled draws on credit enhancements reflecting financial_
difficulties.
(5) Substitution of credit or liquidity providers, or their failure to
perform.
(6) Adverse tax opinions or events affecting the tax-exempt status of
the security.
(7) Modifications to rights of security holders.
(8) Contingent or unscheduled Bond calls.
(9) Defeasances.
(10) Release, substitution, or sale of property securing repayment of the
securities.
(1 l) Rating changes.
(b) The Commission shall, within one business day of obtaining actual knowledge of
the occurrence of any of the Listed Events, contact the Disclosure Representative, inform such
person of the event, and request that the Commission promptly notify the Dissemination Agent
in writing whether or not to report the event pursuant to subsection (f) of this Section.
(c) Whenever the Commission obtains knowledge of the occurrence of a Listed
Event, whether because of a notice from the Dissemination Agent pursuant to subsection (b) of
this Section or otherwise, the Commission shall as soon as possible determine if such event
would be material under applicable Federal securities law.
(d) If the Commission has determined that knowledge of the occurrence of a Listed
Event would be material under applicable Federal securities law, the Commission shall promptly
notify the Dissemination Agent in writing. Such notice shall instruct the Dissemination Agent to
report the occurrence pursuant to subsection (f) of this Section.
(e) If in response to a request under subsection (b) of this Section, the Commission
determines that the Listed Event would not be material under applicable Federal securities law,
the Commission shall so notify the Dissemination Agent in writing and instruct the
Dissemination Agent not to report the occurrence pursuant to subsection (f) of this Section.
(f) 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 MSRB and each Repository. Notwithstanding the foregoing, notice of Listed Events
described in paragraphs (8) and (9) of subsection (a) of this Section need not be given under this
90141084.3
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subsection any earlier than the notice (if any) of the underlying event is given to holders of
affected 2010 Bonds pursuant to the Indenture.
Section 5. Filings with the MSRB. All information, operating data, financial .
statements, notices and other documents provided to the MSRB as Repository in accordance with
this Disclosure Agreement shall be provided in an electronic format prescribed by the MSRB and
shall be accompanied by identifying information as prescribed by the MSRB.
Section 6. Termination of Reporting Obligation. The Commission's obligations
under this Disclosure Agreement shall terminate upon the legal defeasance or payment in full of
all of the 2010 Bonds. If such termination occurs prior to the final maturity of the 2010 Bonds,
the Commission shall give notice of such termination in the same manner as for a Listed Event
under subsection (0 of Section 2 hereof.
Section 7. Dissemination Agent. The Commission may, from time to time, appoint
or engage another Dissemination Agent to assist it in carrying out its obligations under this
Disclosure Agreement, and may discharge any such Dissemination Agent, with or without
appointing a successor Dissemination Agent. If at any time there is not any other designated
Dissemination Agent, the Trustee shall be the Dissemination Agent; provided, it shall receive
written notice of such designation at the time of such designation.
Section 8. Amendment; Waiver. Notwithstanding any other provision of this
Disclosure Agreement, the Commission may amend this Disclosure Agreement, 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 Agreement may be
waived if such amendment or waiver is supported by an opinion of counsel expert in federal
securities laws acceptable to the Commission 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 9. Additional Information. Nothing in this Disclosure Agreement shall be
deemed to prevent the Commission from disseminating any other information, using the means
of dissemination set forth in this Disclosure Agreement or any other means of communication, or
including any other information or notice of occurrence of a Listed Event, in addition to that
which is required by this Disclosure Agreement.
Section 10. Default. In the event of a failure of the Commission or the Dissemination
Agent to comply with any provision of this Disclosure Agreement, the Trustee may (and, at the
written direction of any Participating Underwriter or the holders of at least 25% of the aggregate
amount of principal evidenced by Outstanding 2010 Bonds and upon being indemnified to its
reasonable satisfaction, shall), or any holder or beneficial owner of the 2010 Bonds may, take
such actions as may be necessary and appropriate, including seeking mandate or specific
performance by court order, to cause the Commission or the Dissemination Agent, as the case
may be, to comply with its obligations under this Disclosure Agreement. A default under this
Disclosure Agreement shall not be deemed an Event 6f Default under the Indenture, and the sole
remedy under this Disclosure Agreement in the event of any failure of the Commission or the
901410843
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102
Dissemination Agent to comply with this Disclosure Agreement shall be an action to compel
performance.
Section 11. Duties, Immunities and Liabilities of Dissemination Agent. The.
Dissemination Agent shall not be responsible for the form or content of any notice of Listed
Event. The Dissemination Agent shall receive reasonable compensation for its services provided
under this Disclosure Agreement. The Dissemination Agent shall have only such duties as are
specifically set forth in this Disclosure Agreement, and the Commission agrees to indemnify and
save the Dissemination Agent, its officers, directors, employees and agents, harmless against any
loss, expense and liabilities which it may incur arising out of or in the exercise or performance of
its powers and duties hereunder, including the costs and expenses (including attorneys fees) of
defending against any claim of liability, but excluding liabilities due to the Dissemination
Agent's negligence or willful misconduct. The obligations of the Commission under this Section
shall survive resignation or removal of the Dissemination Agent and payment of the 2010 Bonds.
Section 12. Notices. Any notices or communications to or among any of the parties to
the Disclosure Agreement or the Trustee may be given as follows:
To the Commission:
To the Dissemination Agent:
Riverside County Transportation Mail:
Commission
4080 Lemon Street, 3`1 Floor P.O. Box 12008
Riverside, California 92501 Riverside, California 92502
Tel: (951) 787-7926
Fax: (951) 787-7920
Digital Assurance Certification, L.L.C.
390 North Orange Avenue, Suite 1750
Orlando, Florida 32801
Tel: (407) 515-1100
Fax:(407) 515-6513
To the Trustee: U.S. Bank National Association
633 West Fifth Street, 24th Floor
Los Angeles, California 90071
Attention: Corporate Trust Division
Tel: (213) 615-6023
Fax: (213) 615-6197
Any person may, by written notice to the other persons listed above, designate a different
address or telephone number(s) to which subsequent notices or communications should be sent.
Any notice or communication may also be sent by electronic mail, receipt of which .shall be
confirmed.
Section 13. Beneficiaries. This Disclosure Agreement shall inure solely to the benefit
of the Commission, the Dissemination Agent, the Participating Underwriters and holders and
beneficial owners from time to time of the 2010 Bonds, and shall create no rights in any other
person or entity.
90141084.3
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103
"
"
"
S e c t i o n 1 4 . C o u n t e r p a r t s . T h i s D i s c l o s u r e A g r e e m e n t 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 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 .
I N W I T N E S S W H E R E O F , t h e p a r t i e s h e r e t o h a v e e x e c u t e d t h i s D i s c l o s u r e A g r e e m e n t
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 .
9 0 1 4 1 0 8 4 . 3
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 :
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
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 I O N , L . L . C . ,
a s D i s s e m i n a t i o n A g e n t
B 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
F - 8
1 0 4
"
1 0 5
"
E X H I B I T A
N O T I C E T O R E P O S I T O R I E S O F F A I L U R E T O F I L E A N N U A L R E P O R T
N a m e o f I s s u e 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 ( t h e " C o m m i s s i o n " )
N a m e o f I s s u 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 1 0 S e r i e s A ( T a x - E x e m p 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 1 0 S e r i e s B ( T a x a b l e B u i l d
A m e r i c a B o n d s )
D a t e o f I s s u a n c e : , 2 0 1 0
N O T I C E I S H E R E B Y G I V E N t h a t t h e C o m m i s s i o n h a s n o t p r o v i d e d a n A n n u a l R e p o r t
w i t h r e s p e c t t o t h e a b o v e - n a m e d B o n d s a s r e q u i r e d b y t h i s 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 a s o f , 2 0 1 0 , 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 D i s s e m i n a t i o n A g e n t . T h e
C o m m i s s i o n a n t i c i p a t e s t h a t 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
D a t e d :
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 I O N ,
L . L . C . , a s 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
c 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
9 0 1 4 1 0 8 4 . 3
F - 9
1 0 6
ATTACHMENT 2
NO.10-030
RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF NOT TO EXCEED
$150,000,000 AGGREGATE PRINCIPAL AMOUNT OF RIVERSIDE COUNTY .
TRANSPORTATION COMMISSION SALES TAX REVENUE BONDS (LIMITED TAX
BONDS) IN ONE OR MORE SERIES, THE EXECUTION AND DELIVERY OF A
THIRD SUPPLEMENTAL INDENTURE, A PURCHASE CONTRACT, AN OFFICIAL
STATEMENT AND CONTINUING DISCLOSURE AGREEMENT, AND THE TAKING
OF ALL OTHER ACTIONS NECESSARY IN CONNECTION THEREWITH
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. 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 one-half of one percent (1/2%) commencing July 1, 2009 and continuing for a period
not to exceed thirty (30) years;
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");
OHS Wesc260964477.3
107
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 desires to decrease the aggregate principal amount of CP
Notes authorized to be issued and outstanding at any one time to an amount not to exceed
$120,000,000;
WHEREAS, the Commission has heretofore issued its Sales Tax Revenue Bonds
(Limited Tax Bonds), 2009 Series A, 2009 Series B and 2009 Series C (collectively, the "Series
2009 Bonds") in the aggregate principal amount of $185,000,000 pursuant to an Indenture, dated
as of June 1, 2008, as amended and supplemented, including by a Second Supplemental
Indenture, dated as of October 1, 2009 (collectively, and as subsequently amended from time to
time, the "Indenture"), each by and between the Commission and U.S. Bank National
Association, as trustee (the "Trustee"), which Series 2009 Bonds are currently outstanding in the
aggregate principal amount of $181,000,000;
WHEREAS, the Commission has heretofore executed and delivered interest rate swap
agreements in an aggregate notional amount of $185 million (the "Existing Swaps"), which
Existing Swaps became effective on October 1, 2009 and are currently outstanding in an
aggregate notional amount of $181,000,000;
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 fifty million
dollars ($150,000,000) and payable on a parity with the Series 2009 Bonds is necessary in order
to finance (i) funds for projects authorized in the Expenditure Plan, (ii) the refunding of all or a
portion of the outstanding CP Notes, (iii) capitalized interest and a reserve fund for such bonds,
if any, and (iv) 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), Series 2010" (the
"Series 2010 Bonds");
WHEREAS, the Commission finds and determines that issuing one or more series of the
Series 2010 Bonds as taxable bonds which qualify the Commission to receive federal subsidy
payments under Sections 54AA and 6431 of the Internal Revenue Code of 1986 (the "Code") or
any other provisions of the Code that create, in the determination of the Executive Director of the
Commission, a similar direct -pay subsidy program (collectively, the "Build America Bonds"),
could produce economic benefits for the Commission;
WHEREAS, the Commission hereby further determines that the Series 2010 Bonds shall
be issued pursuant to a Third Supplemental Indenture, amending and supplementing the
Indenture (the "Third Supplemental Indenture"), by and between the Commission and the
Trustee;
OHS West:260964477.3
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"
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 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 T h i r d S u p p l e m e n t a l I n d e n t u r e ;
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 1 0 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
B a r c l a y s C a p i t a l I n c . , a s 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 t h e o t h e r u n d e r w r i t e r s ,
i n c l u d i n g E . J . D e L a R o s a & C o . , I n c . ( c o l l e c t i v e l y , t h e " U n d e r w r i t e r s " ) ;
W H E R E A S , t h e U n d e r w r i t 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 t h e P u r c h a s e C o n t r a c 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 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 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 o b e d i s t r i b u t e d 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 a n d
s a l e o f t h e S e r i e s 2 0 1 0 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 ' ) ;
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 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 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 ' ) t o b e 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 t o a s s i s t t h e U n d e r w r i t e r s i n s a t i s f y i n g t h e i r o b l i g a t i o n s u n d e r
R u l e 1 5 c 2 - 1 2 p r o m u l g a 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 ;
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 p r o p o s e d f o r m s o f t h e T h i r d
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 i s s u a n c e o f t h e S e r i e s 2 0 1 0 B o n d s a n d 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 T h i r d 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 O f f i c i a l
S t a t e m e n t i n f i n a l f o r m 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 ;
N O W T H E R E F O R E , 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 E S O L V E S :
S e c t i o n 1 . T h e C o m m i s s i o n 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 f o r e g o i n g r e c i t a l s a r e t r u e
a n d c o r r e c t .
S e c t i o n 2 . T h e i s s u a n c e b y t h e C o m m i s s i o n o f n o t t o e x c e e d $ 1 5 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 1 0 , 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 t h e I n d e n t u r e , i n
o n e o r m o r e s e r i e s o r s u b s e r i e s , i s h e r e b y a u t h o r i z e d a n d a p p r o v e d .
O H S W e s t . 2 6 0 9 6 4 4 7 7 . 3
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1 0 9
Section 3. The proposed form of Third 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), federally taxable or tax-exempt fixed interest rate or
rates (such federally taxable interest rate or rates, if any, not to exceed a maximum of 8% per.
annum and ]such federally tax-exempt interest rate or rates, if any, not to exceed a maximum of
6% per annum) or methods of determining the same, interest payment dates, forms, registration
privileges, place or places of payment, terms of redemption, mandatory purchase, additional
series designation and number thereof and other terms of the Series 2010 Bonds shall be (subject
to the foregoing limitations) as provided in the Indenture and the Third 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 Third Supplemental Indenture, in
substantially said form, with such changes therein, including without limitation changes
necessary to designate one or more series of the Series 2010 Bonds as Build America Bonds, 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 the Purchase Contract presented to this meeting and
the terms 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
2010 Bonds to the Underwriters pursuant to a Purchase Contract, with the Underwriters'
compensation not to exceed [ 1% of the principal amount of the Series 2010 Bonds and the
costs of issuance to be financed with respect to any series of Series 2010 Bonds designated as
Build America Bonds not to exceed 2% of the proceeds of the sale of such series of Series 2010
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 proposed form of Official Statement presented to this meeting is
hereby approved. The Executive Director is hereby authorized and directed to execute and
deliver the Official Statement in substantially said form with such changes, insertions and
deletions as may be approved by the Executive Director, said execution being conclusive
evidence of such approval; and the Executive Director is hereby authorized to execute a
certificate confirming that the Official Statement in preliminary form is "deemed final" by the
Commission for purposes of Securities and Exchange Commission Rule 15c2-12. The
distribution by the Underwriters of copies of the Official Statement in final form to all actual
purchasers of the Series 2010 Bonds and the distribution by the Underwriters of the Official
Statement in preliminary form to potential purchasers of the Series 2010 Bonds are hereby
authorized and approved.
Section 6. The proposed form of Continuing Disclosure Agreement presented to this
meeting is hereby approved. If the Executive Director determines that doing so is in the best
interests of the Commission, the Executive Director is hereby authorized and directed, for and in
the name and on behalf of the Commission, to execute and deliver the Continuing Disclosure
Agreement in substantially said form, with such changes therein as such officer executing the
OHS West 260964477.3
-4-
110
"
"
"
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 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 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 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 s u c h i n s u r a n c e p o l i c y o r s u r e t y b o n d
i n o r d e r t o s e c u r e p a y m e n t o f t h e p r i n c i p a l o f , o r i n t e r e s t o n , t h e S e r i e s 2 0 1 0 B o n d s o 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 T h i r d 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 S . 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 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 ( 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
t h e " I n v e s t m e n t A g r e e m e n t " ) p r o v i d i n g f 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 T h i r d 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 n 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 I n v e s t m e n t A g r e e m e n t
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 I n v e s t m e n t A g r e e m e n t a n d 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 S e r i e s 2 0 1 0 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 9 . T h e m a x i m u m 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 C o m m i s s i o n ' s C P N o t e s
i s s u e d a n d o u t s t a n d i n g a t a n y o n e t i m e s h a l l n o t e x c e e d $ 1 2 0 , 0 0 0 , 0 0 0 .
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 , t h e C P
N o t e s o r t h e E x i s t i n g S w a p s , w h e t h e r b e f o r e o r a f t e r t h e i s s u a n c e o f t h e S e r i e s 2 0 1 0 B o n d 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 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 o r r e l a t e d t o t h e E x i s t i n g S w a p s o r t h e C P N o t e s ,
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 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 1 0 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 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 e C o m m i s s i o n , 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 t h e r a c t i o n a n d t o e x e c u t e s u c h d o c u m e n t s a n d t a k e a n y s u c h a c t i o n
w h i c h s u 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 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 t o f u r t h e r t h e p u r p o s e s
o f t h i s R e s o l u t i o n .
S e c t i o n 1 1 . A l l a c t i o n s h e r e t o f o r e t a k e n b y t h e o f f i c e r s a n d a g e n t s 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 t h e F i n a n c i n g a n d t h e i s s u a n c e a n d s a l e o f t h e S e r i e s 2 0 1 0 B o n d s a r e h e r e b y
r a t i f i e d , c o n f i r m e d a n d a p p r o v e d . I f a t t h e t i m e o f e x e c u t i o n 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
h e r e i n , t h e E x e c u t i v e D i r e c t o r i s u n a v a i l a b l e , s u c h d o c u m e n t s m a y b e e x e c u t e d b y t h e D e p u t y
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 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 i n l i e u o f t h e E x e c u t i v e
O H S W e s t 2 6 0 9 6 4 4 7 7 . 3
- 5 -
1 1 1
Director. The Chair of the Board of Commissioners or, in his absence, a Vice Chair of the Board
of Commissioners, is hereby authorized to execute and deliver the Series 2010 Bonds. The Chief
Financial Officer of the Commission shall act as the Auditor -Controller of the Commission for
execution of the Series 2010 Bonds and is hereby authorized to execute and attest to the -
execution of such Series 2010 Bonds. The Clerk of 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 as said officers deem appropriate.
The 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, signature certificates, certificates concerning the
contents of the Official Statement and the representations and warranties in the Purchase
Contract, any tax certificates or agreements, any insurance commitments or any agreements
required in connection with obtaining a surety bond or an insurance policy, 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 2010 Bonds and otherwise to carry out, give effect to and
comply with the terms and intent of the Ordinance, this Resolution, the Series 2010 Bonds and
the documents approved hereby.
Section 12. This Resolution shall take effect immediately upon its adoption and
approval.
APPROVED AND ADOPTED by the Riverside County Transportation Commission at
its meeting on October 13, 2010.
ATTEST:
By:
Clerk of the Board of the Commission
OHS West260964477.3
By:
Chair, Board of Commissioners
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i
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112
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C E R T I F I C A T E O F T H E C L E R K O F T H E B O A R D 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
I , J e n n i f e r H a r m o n , C l e r k o f t h e B o a r d 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 ( t h e " C o m m i s s i o n ' ) , h e r e b y c e r t i f y t h a t t h e f o r e g o i n g i s a f u l l , t r u e a n d c o r r e c t
c o p y o f a r e s o l u t i o n d u l y a d o p t e d a t a m e e t i n g o f t h e g o v e r n i n g b o a r d o f s a i d C o m m i s s i o n d u l y
a n d r e g u l a r l y h e l d i n R i v e r s i d e , C a l i f o r n i a , o n O c t o b e r 1 3 , 2 0 1 0 , o f w h i c h m e e t i n g a l l o f t h e
m e m b e r s o f s a i d C o m m i s s i o n h a d d u e n o t i c e .
I f u r t h e r c e r t i f y t h a t I h a v e c a r e f u l l y c o m p a r e d t h e f o r e g o i n g c o p y w i t h t h e o r i g i n a l
m i n u t e s o f s a i d m e e t i n g o n f i l e a n d o f r e c o r d i n m y o f f i c e ; t h a t s a i d c o p y i s a f u l l , t r u e a n d
c o r r e c t c o p y o f t h e o r i g i n a l r e s o l u t i o n a d o p t e d a t s a i d m e e t i n g a n d e n t e r e d i n s a i d m i n u t e s ; a n d
t h a t s a i d r e s o l u t i o n h a s n o t b e e n a m e n d e d , m o d i f i e d , r e s c i n d e d o r r e v o k e d i n a n y m a n n e r s i n c e
t h e d a t e o f i t s a d o p t i o n , a n d t h e s a m e i s n o w i n f u l l f o r c e a n d e f f e c t .
I f u r t h e r c e r t i f y t h a t a n a g e n d a o f s a i d m e e t i n g w a s p o s t e d a t l e a s t 7 2 h o u r s b e f o r e s a i d
m e e t i n g a t a l o c a t i o n i n R i v e r s i d e , C a l i f o r n i a , f r e e l y a c c e s s i b l e t o t h e p u b l i c a n d a b r i e f g e n e r a l
d e s c r i p t i o n o f t h e r e s o l u t i o n t o b e a d o p t e d a t s a i d m e e t i n g a p p e a r e d o n s a i d a g e n d a .
I N W I T N E S S W H E R E O F , I h a v e e x e c u t e d t h i s c e r t i f i c a t e h e r e t o a s o f t h i s d a t e ,
, 2 0 1 0 .
O H S W e s t : 2 6 0 9 6 4 4 7 7 3
B y
C l e r k
- 7 -
1 1 3
ATTACHMENT 3
THIRD SUPPLEMENTAL INDENTURE
between
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
and
U.S. BANK NATIONAL ASSOCIATION,
as Trustee
Dated as of November 1, 2010
Relating to
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
SALES TAX REVENUE BONDS
(LIMITED TAX BONDS)
2010 SERIES A (TAX-EXEMPT)
AND
2010 SERIES B (TAXABLE BUILD AMERICA BONDS)
(Supplementing the Indenture
Dated as of June 1, 2008)
OHS West :2609649832
114
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"
1 1 5
"
A R T I C L E X X V I
D E F I N I T I O N S
S e c t i o n 2 6 . 0 1 . D e f i n i t i o n s 1
S e c t i o n 2 6 . 0 2 . R u l e s o f C o n s t r u c t i o n 5
A R T I C L E X X V 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 2 7 . 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 5
S e c t i o n 2 7 . 0 2 . R e c i t a l i n B o n d s 5
S e c t i o n 2 7 . 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 5
A R T I C L E X X V I I I
A U T H O R I Z A T I O N O F 2 0 1 0 B O N D S
S e c t i o n 2 8 . 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 6
S e c t i o n 2 8 . 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 6
S e c t i o n 2 8 . 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 7
S e c t i o n 2 8 . 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 7
S e c t i o n 2 8 . 0 5 . T a x C o v e n a n t s f o r 2 0 1 0 S e r i e s B B o n d s 8
A R T I C L E X X I X
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 1 0 B O N D S
S e c t i o n 2 9 . 0 1 . O p t i o n a l R e d e m p t i o n o f 2 0 1 0 S e r i e s A B o n d s 9
S e c t i o n 2 9 . 0 2 . O p t i o n a l R e d e m p t i o n o f 2 0 1 0 S e r i e s B B o n d s 1 0
S e c t i o n 2 9 . 0 3 . M a n d a t o r y R e d e m p t i o n o f 2 0 1 0 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 1 0
S e c t i o n 2 9 . 0 4 . 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 1 3
S e c t i o n 2 9 . 0 5 . 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 1 4
A R T I C L E X X X
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 3 0 . 0 1 . F u n d s a n d A c c o u n t s 1 4
S e c t i o n 3 0 . 0 2 . 2 0 1 0 B o n d s P r o j e c t F u n d 1 4
S e c t i o n 3 0 . 0 3 . 2 0 1 0 C o s t s o f I s s u a n c e F u n d 1 5
A R T I C L E X X X I
M I S C E L L A N E O U S
S e c t i o n 3 1 . 0 1 . S e v e r a b i l i t y 1 5
S e c t i o n 3 1 . 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 1 6
S e c t i o n 3 1 . 0 3 . H e a d i n g s N o t B i n d i n g 1 6
S e c t i o n 3 1 . 0 4 . N o t i c e A d d r e s s e s 1 6
S e c t i o n 3 1 . 0 5 . N o t i c e s t o R a t i n g A g e n c i e s 1 6
S e c t i o n 3 1 . 0 6 . I n d e n t u r e t o R e m a i n i n E f f e c t 1 6
S e c t i o n 3 1 . 0 7 . E f f e c t i v e D a t e o f T h i r d S u p p l e m e n t a l I n d e n t u r e 1 6
S e c t i o n 3 1 . 0 8 . E x e c u t i o n i n C o u n t e r p a r t s 1 7
O H S W e s t : 2 6 0 9 6 4 9 8 3 . 2 j
1 1 6
EXHIBITS
•
EXHIBIT A FORM OF 2010 Bond A-1
EXHIBIT B NOTICE ADDRESSES B-1
EXHIBIT C FORM OF 2010 BONDS PROJECT FUND REQUISITION C-1
•
OHS West:260964983.2 II
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T H I R D 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 T H I R D 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 N o v e m b e r 1 , 2 0 1 0 ( t h i s
" T h i r d 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 H :
W H E R E A S , t h i s T h i r d 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 ;
W H E R E A S , t h e C o m m i s s i o n h a s h e r e t o f o r e i s s u e d i t s 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 9 S e r i e s A , 2 0 0 9 S e r i e s B a n d 2 0 0 9 S e r i e s C , 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 $ 1 8 5 , 0 0 0 , 0 0 0 , s e c u r e d b y t h e p l e d g e o f R e v e n u e s a n d o t h e r m o n i e s a s s e t f o r t h i n t h e
I n d e n t u r e ; 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 ( i ) 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 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 1 0 S e r i e s A ( T a x - E x e m p t ) " ( t h e " 2 0 1 0 S e r i e s A
B o n d s " ) ; a n d ( i i ) 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 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 1 0 S e r i e s B
( T a x a b l e B u i l d A m e r i c a B o n d s ) " a s B u i l d A m e r i c a B o n d s ( t h e " 2 0 1 0 S e r i e s B B o n d s " a n d ,
t o g e t h e r w i t h t h e 2 0 1 0 S e r i e s A B o n d s , t h e " 2 0 1 0 B o n d s " ) a l l f o r t h e p u r p o s e o f p r o v i d i n g f u n d s
t o p a y f o r a p o r t i o n o f t h e C o s t s o f t h e P r o j e c t , t o r e t i r e $ 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 O u t s t a n d i n g N o t e s 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 T h i r d
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 X V I
D E F I N I T I O N S
S e c t i o n 2 6 . 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 ) a n d ( c ) o f t h i s S e c t i o n , 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 a n d
S e c t i o n 1 9 . 0 1 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 T h i r d S u p p l e m e n t a l
I n d e n t u r e .
O H S W e s t : 2 6 0 9 6 4 9 8 3 . 2
1 1 8
(b) Additional Definitions. Unless the context otherwise requires, the following
terms shalt, for all purposes of this Third Supplemental Indenture, have the following
meanings:
"Authorized Denominations" means, with respect to 2010 Bonds, $5,000 and any
integral multiple thereof.
"Comparable Treasury Issue" means, with respect to any 2010 Series B Bond to be
redeemed, the United States Treasury security selected by the Independent Banking Institution as
having a maturity comparable to the remaining term to maturity of the 2010 Series B Bond being
redeemed that would be utilized, at the time of selection and in accordance with customary
financial practice, in pricing new issues of corporate debt securities of comparable maturity to
the remaining term to maturity of the 2010 Series B Bond being redeemed.
"Comparable Treasury Price" means, with respect to any date on which a 2010 Series
B Bond or portion thereof is being redeemed, either (a) the average of five Reference Treasury
Dealer quotations for the date fixed for redemption, after excluding the highest and lowest such
quotations, and (b) if the Independent Banking Institution is unable to obtain five such
quotations, the average of the quotations that are obtained. The quotations will be the average,
as determined by the Independent Banking Institution, of the bid and asked prices for the
Comparable Treasury Issue (expressed in each case as a percentage of principal amount) quoted
in writing to the Independent Banking Institution, at 5:00 p.m. New York City time on the third
business day preceding the date fixed for redemption.
"Comparable Treasury Yield" means, with respect to any 2010 Series B Bond to be
redeemed, the yield which represents the weekly average yield to maturity for the preceding
week appearing in the most recently published statistical release designated "H.15(519) Selected
Interest Rates" under the heading "Treasury Constant Maturities," or any successor publication
selected by the Independent Banking Institution that is published weekly by the Board of
Governors of the Federal Reserve System and that establishes yields on actively traded United
States Treasury securities adjusted to constant maturity, for the maturity corresponding to the
remaining term to maturity of the 2010 Series B Bond being redeemed. The Comparable
Treasury Yield will be determined as of the third business day immediately preceding the
applicable date fixed for redemption. If the H.15(519) statistical release sets forth a weekly
average yield for United States Treasury securities that have a constant maturity that is the same
as the remaining term to maturity of the 2010 Series B Bond being redeemed, then the
Comparable Treasury Yield will be equal to such weekly average yield. In all other cases, the
Comparable Treasury Yield will be calculated by interpolation on a straight-line basis, between
the weekly average yields on the United States Treasury securities that have a constant maturity
(i) closest to and greater than the remaining term to maturity of the 2010 Series B Bond being
redeemed; and (ii) closest to and less than the remaining term to maturity of the 2010 Series B
Bond being redeemed. Any weekly average yields calculated by interpolation will be rounded to
the nearest 1/100th of 1 %, with any figure of I/200th of 1 % or above being rounded upward.
If, and only if, weekly average yields for United States Treasury securities for the
preceding week are not available in the H.15(519) statistical release or any successor publication,
then the Comparable Treasury Yield will be the rate of interest per annum equal to the
OHS West.260964983.2 2
•
•
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119
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s e m i a n n u a l e q u i v a l e n t y i e l d t o m a t u r i t y o f t h e C o m p a r a b l e T r e a s u r y I s s u e ( e x p r e s s e d a s a
p e r c e n t a g e o f i t s p r i n c i p a l a m o u n t ) a t t h e C o m p a r a b l e T r e a s u r y P r i c e ( e a c h a s d e f i n e d h e r e i n ) a s
o f 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 d e p e n d e n t B a n k i n g I n s t i t u t i o n " m e a n s , w i t h r e s p e c t t o a n y 2 0 1 0 S e r i e s B B o n d t o
b e r e d e e m e d , a n i n v e s t m e n t b a n k i n g i n s t i t u t i o n o f n a t i o n a l s t a n d i n g w h i c h i s a p r i m a r y U n i t e d
S t a t e s g o v e r n m e n t s e c u r i t i e s d e a l e r i n t h e C i t y o f N e w Y o r k d e s i g n a t e d b y t h e C o m m i s s i o n
( w h i c h m a y b e o n e o f t h e u n d e r w r i t e r s o f t h e 2 0 1 0 S e r i e s B B o n d s ) [ o r a n i n d e p e n d e n t f i n a n c i a l
a d v i s o r d e s i g n a t e d b y t h e C o m m i s s i o n ] . I f t h e C o m m i s s i o n f a i l s t o a p p o i n t a n I n d e p e n d e n t
B a n k i n g I n s t i t u t i o n a t l e a s t 4 5 d a y s 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 , o r i f t h e I n d e p e n d e n t
B a n k i n g I n s t i t u t i o n a p p o i n t e d b y t h e C o m m i s s i o n i s u n w i l l i n g o r u n a b l e t o d e t e r m i n e t h e
C o m p a r a b l e T r e a s u r y Y i e l d , t h e C o m p a r a b l e T r e a s u r y Y i e l d w i l l b e d e t e r m i n e d b y a n
I n d e p e n d e n t B a n k i n g I n s t i t u t i o n d e s i g n a t e d b y t h e T r u s t e e .
" I n t e r e s t P a y m e n t D a t e " m e a n s , w i t h r e s p e c t t o 2 0 1 0 B o n d s , 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 u n t i l t h e r e d e m p t i o n o r m a t u r i t y o f s u c h 2 0 1 0 B o n d s , c o m m e n c i n g w i t h J u n e 1 , 2 0 1 1 .
" 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 1 0 B o n d s , t h e d a t e o n w h i c h t h e 2 0 1 0 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 .
" M a k e - W h o l e P r e m i u m " m e a n s , w i t h r e s p e c t t o a n y 2 0 1 0 S e r i e s B B o n d t o b e
r e d e e m e d , a n a m o u n t c a l c u l a t e d b y a n I n d e p e n d e n t B a n k i n g I n s t i t u t i o n ( a s d e f i n e d h e r e i n ) e q u a l
t o t h e p o s i t i v e d i f f e r e n c e , i f a n y , b e t w e e n :
( 1 ) T h e s u m o f t h e p r e s e n t v a l u e s , c a l c u l a t e d a s o f 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 ) E a c h i n t e r e s t p a y m e n t t h a t , b u t f o r t h e r e d e m p t i o n , w o u l d h a v e b e e n
p a y a b l e o n t h e 2 0 1 0 S e r i e s B B o n d o r p o r t i o n t h e r e o f b e i n g r e d e e m e d o n e a c h r e g u l a r l y
s c h e d u l e d i n t e r e s t p a y m e n t d a t e o c c u r r i n g a f t e r 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 t h r o u g h t h e
m a t u r i t y d a t e o f s u c h 2 0 1 0 S e r i e s B B o n d ( e x c l u d i n g a n y a c c r u e d i n t e r e s t f o r t h e p e r i o d 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 ) ; p r o v i d e d , t h a t i f 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 s n o t a r e g u l a r l y
s c h e d u l e 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 2 0 1 0 S e r i e s B B o n d , t h e a m o u n t o f t h e n e x t
r e g u l a r l y s c h e d u l e d i n t e r e s t p a y m e n t w i l l b e r e d u c e d b y t h e a m o u n t o f i n t e r e s t a c c r u e d o n s u c h
2 0 1 0 S e r i e s B B o n d 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 ; p l u s
( b ) T h e p r i n c i p a l a m o u n t t h a t , b u t f o r s u c h r e d e m p t i o n , w o u l d h a v e b e e n
p a y a b l e o n t h e m a t u r i t y d a t e o f t h e 2 0 1 0 S e r i e s B B o n d o r p o r t i o n t h e r e o f b e i n g r e d e e m e d ;
m i n u s
( 2 ) 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 1 0 S e r i e s B B o n d o r p o r t i o n t h e r e o f b e i n g
r e d e e m e d .
T h e p r e s e n t v a l u e s o f t h e i n t e r e s t a n d p r i n c i p a l p a y m e n t s r e f e r r e d t o i n ( 1 ) a b o v e w i l l b e
d e t e r m i n e d b y d i s c o u n t i n g t h e a m o u n t o f e a c h s u c h i n t e r e s t a n d p r i n c i p a l p a y m e n t f r o m t h e d a t e
t h a t e a c h s u c h p a y m e n t w o u l d h a v e b e e n p a y a b l e b u t f o r t h e r e d e m p t i o n 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 o n a s e m i a n n u a l b a s i s ( a s s u m i n g 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 ( 1 2 ) 3 0 - d a y
m o n t h s ) a t a d i s c o u n t r a t e e q u a l t o t h e C o m p a r a b l e T r e a s u r y Y i e l d ( a s d e f i n e d h e r e i n ) , p l u s
[ ] ( [ ] ) b a s i s p o i n t s .
O I I S W e s e 2 6 0 9 6 4 9 8 3 . 2 3
1 2 0
"Record Date" means, with respect to the 2010 Bonds, the fifteenth (15th) day (whether
or not a Business Day) of the month preceding the month in which such Interest Payment Date
occurs.
"Redemption Price" means, with respect to any 2010 Bond or a portion thereof, 100%
of the principal amount thereof to be redeemed, plus the applicable premium, if any, payable
upon redemption thereof pursuant to such Bond or this Third Supplemental Indenture.
"Reference Treasury Dealer" means, with respect to any 2010 Series B Bond to be
redeemed, a primary United States Government securities dealer in the United States appointed
by the Commission and reasonably acceptable to the Independent Banking Institution (which
may be one of the underwriters of the 2010 Series B Bonds). If the Commission fails to select
the Reference Treasury Dealers within a reasonable period of time, the Trustee will select the
Reference Treasury Dealers in consultation with the Commission.
"Tax Law Change" means legislation has been enacted by the Congress of the United
States or passed by either House of the Congress, or a decision has been rendered by a court of
the United States, or an order, ruling, regulation (final, temporary or proposed) or official
statement has been made by or on behalf of the Treasury Commission of the United States, the
Internal Revenue Service or other governmental agency of appropriate jurisdiction, the effect of
which, as reasonably determined by the Commission, would be to suspend, reduce or terminate
the Subsidy Payments from the United States Treasury to the Commission or the Trustee as its
agent with respect to the 2010 Series B Bonds, or to state or local government issuers generally
with respect to obligations of the general character of the 2010 Series B Bonds, pursuant to
Sections 54AA or 6431 of the Code of an amount equal to 35% of the interest due thereon on
each interest payment date; provided, that such suspension, reduction or termination is not due to
a failure by the Commission to comply with the requirements under the Code to receive the
Subsidy Payments.
"Third Supplemental Indenture" means this Third Supplemental Indenture, between
the Commission and the Trustee, as amended and supplemented from time to time.
"2010 Bonds" means, collectively, the 2010 Series A Bonds and the 2010 Series B
Bonds authorized by Article XXVIII of this Indenture.
"2010 Bonds Project Fund" means the fund by that name established pursuant to
Section 30.01(a).
"2010 Bonds Tax Certificate" means the Tax Certificate executed on behalf of the
Commission in connection with the issuance of the 2010 Bonds.
"2010 Costs of Issuance Fund" means the fund by that name established pursuant to
Section 30.01(b).
"2010 Credit Enhancement" means any Credit Enhancement provided with respect to
the 2010 Bonds.
"2010 Credit Provider" means the Credit Provider issuing a 2010 Credit Enhancement.
OHS West :260964983.2 4
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"
" 2 0 1 0 S e r i e s A B o n d s " s h a l l m e a 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
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 1 0 S e r i e s A ( T a x - E x e m p t ) , a u t h o r i z e d b y
A r t i c l e X X V I I I o f t h i s I n d e n t u r e .
" 2 0 1 0 S e r i e s B B o n d s " s h a l l m e a 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
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 1 0 S e r i e s B ( T a x a b l e B u i l d A m e r i c a B o n d s ) ,
a u t h o r i z e d b y A r t i c l e X X V I I I o f t h i s I n d e n t u r e .
S e c t i o n 2 6 . 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 X V 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 T h i r d 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 X V 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 2 7 . 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 1 0 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 A r t i c l e X X V I I I a n d S e c t i o n 3 . 0 1 ,
S e c t i o n 3 . 0 2 a n d S e c t i o n 3 . 0 3 o f t h e I n d e n t u r e , 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 1 0 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 2 7 . 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 i n i t i v e 2 0 1 0
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 1 0 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
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 a t 2 0 1 0 B o n d , a n d i n t h e
i s s u i n g o f t h a t 2 0 1 0 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 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 a n d t h e A c t , a n d t h a t s a i d 2 0 1 0
B o n d , t o g e t h e r w i t h a l l o t h e r 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 p a y a b l e o u t o f R e v e n u e s , i s w i t h i n
e v e r y d e b t a n d o t h e r l i m i t p r e s c r i b 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 a n d t h e A c t ,
a n d t h a t s u c h c e r t i f i c a t i o n a n d r e c i t a l s h a l l b e i n s u c h f o r m a s i s s e t f o r t h i n t h e f o r m o f t h e 2 0 1 0
B o n d a t t a c h e d h e r e t o a s E x h i b i t A .
S e c t i o n 2 7 . 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 . F r o m a n d a f t e r t h e i s s u a n c e o f t h e 2 0 1 0
B o n d s , t h e 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 h e r e i n 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 o f t h e e x i s t e n c e o f
t h e f a c t s s o f o u n d a n d d e t e r m i n e d i n a n y a c t i o n o r p r o c e e d i n g i n a n y c o u r t i n w h i c h t h e v a l i d i t y
o f t h e 2 0 1 0 B o n d s i s a t i s s u e .
O H S W e s t - 2 6 0 9 6 4 9 8 3 . 2 5
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ARTICLE XXVIII
AUTHORIZATION OF 2010 BONDS
Section 28.01. 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 $( 1. 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), 2010 Series A (Tax -Exempt)."
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 $1 1. 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), 2010 Series B
(Taxable Build America Bonds)."
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 each Series of 2010 Bonds in the aggregate principal amount set forth above.
Section 28.02. Purpose and Application of Proceeds. The 2010 Bonds are issued for
the purpose of providing funds to pay for a portion of the Costs of the Project and to retire
$ principal amount of the Commission's Outstanding Notes. In addition, a portion of
the proceeds of the 2010 Bonds will be applied to pay Costs of Issuance of the 2010 Bonds.
The net proceeds from the sale of the 2010 Series A 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 funds shall be deposited in the 2010 Series A Account
which the Trustee shall establish and maintain within the 2010 Bonds Project Fund.
(b) $ of such proceeds shall be transferred to the Notes Trustee for
deposit upon the order of the Commission; and
(c) $
Fund.
of such proceeds shall be deposited in the 2010 Costs of Issuance
The net proceeds from the sale of the 2010 Series B Bonds in the amount of $ shall
be received by the Trustee, and the Trustee shall deposit or transfer such funds as follows:
(d) $ of such funds shall be deposited in the 2010 Series B Account
which the Trustee shall establish and maintain within the 2010 Bonds Project Fund.
(e) $ of such proceeds shall be transferred to the Notes Trustee for
deposit upon the order of the Commission; and
OHS West:260964983.2 6
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( i $
F u n d .
o f s u c h p r o c e e d s s h a l l b e d e p o s i t e d i n t h e 2 0 1 0 C o s t s o f I s s u a n c e
S e c t i o n 2 8 . 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 . E a c h S e r i e s o f 2 0 1 0
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 S e r i e s o f 2 0 1 0 B o n d s 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 .
S e c t i o n 2 8 . 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 1 0 S e r i e s A B o n d s s h a l l b e
i s s u e d a s C u r r e n t I n t e r e s t B o n d s 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 h e 2 0 1 0
S e r i e s A 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 , s h a l l b e a r i n t e r e s t f r o m t h a t d a t e a t t h e f o l l o w i n g
r a t e s p e r a n n u m , c o m p u t e d 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 m p r i s e d o f t w e l v e 3 0 - d a y m o n t h s ,
a n d s h a l l m a t u r e o n J u n e 1 i n t h e f o l l o w i n g y e a r s a n d i n t h e f o l l o w i n g a m o u n t s :
M a t u r i t y D a t e
( J u n e 1 ) P r i n c i p a l A m o u n t I n t e r e s t R a t e
* T e n n B o n d F i n a l M a t u r i t y
T h e 2 0 1 0 S e r i e s B B o n d s s h a l l b e i s s u e d a s C u r r e n t I n t e r e s t B o n d s 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 h e 2 0 1 0 S e r i e s B 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 ,
s h a l l b e a r i n t e r e s t f r o m t h a t d a t e a t t h e f o l l o w i n g r a t e s p e r a n n u m , c o m p u t e d 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 m p r i s e d o f t w e l v e 3 0 - d a y m o n t h s , a n d s h a l l m a t u r e o n J u n e 1 i n t h e f o l l o w i n g
y e a r s a n d i n t h e f o l l o w i n g a m o u n t s :
M a t u r i t y D a t e
( J u n e 1 )
P r i n c i p a l A m o u n t I n t e r e s t R a t e
* T e n n B o n d F i n a l M a t u r i t y
I n t e r e s t o n e a c h 2 0 1 0 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 f o r s u c h 2 0 1 0
B o n d u n t i l t h e p r i n c i p a l s u m o f s u c h 2 0 1 0 B o n d 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 a n y 2 0 1 0 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
O H S W e s e 2 6 0 9 6 4 9 8 3 . 2 %
1 2 4 4
redemption thereof, in full accordance with terms of the Indenture, such 2010 Bond shall then
cease to bear interest.
Each 2010 Bond shall bear interest from the latest of: (i) its Issue Date; (ii) the most.
recent Interest Payment Date to which interest has been paid thereon or duly provided for, or (iii)
if the date of authentication of such Bond is after a Record Date but prior to the immediately
succeeding Interest Payment Date, the Interest Payment Date immediately succeeding such date
of authentication.
As long as the 2010 Bonds are Book -Entry Bonds, principal of and interest on the 2010
Bonds shall be payable by wire transfer to DTC in lawful money of the United States of
America. Principal of the 2010 Bonds shall be payable when due upon presentation and
surrender thereof at the Principal Office of the Trustee.
Each 2010 Bond shall be payable as provided in Section 2.10, including Section 2.10(E),
or, in the event the use of the Securities Depository is discontinued, the principal of each 2010
Bond shall be payable in lawful money of the United States of America upon surrender thereof at
the Principal Office of the Trustee, and the interest on each 2010 Bond shall be payable in lawful
money of the United States of America by the Trustee to the Holder thereof as of the close of
business on the Record Date, such interest to be paid by the Trustee to such Holder in
immediately available funds (by wire transfer or by deposit to the account of the Holder if such
account is maintained with the Trustee), according to the instructions given by such Holder to the
Trustee or, in the event no such instructions have been given, by check mailed by first class mail
to the Holder at such Holder's address as it appears as of the Record Date on the bond
registration books kept by the Trustee.
Section 28.05. Tax Covenants for 2010 Series B Bonds.
(a) The Commission hereby irrevocably elects to apply the provisions of Section
54AA(d) of the Code to the 2010 Series B Bonds and intends that the 2010 Series B Bonds be
treated as Build America Bonds. In addition, the Commission hereby irrevocably elects to treat
the 2010 Series B Bonds as "Qualified Bonds" within the meaning of Section 54AA(g)(2) of the
Code such that the 2010 Series B Bonds will be eligible for direct payment by the federal
government of the Subsidy Payments with respect to the 2010 Series B Bonds.
(b) The Commission will not use or permit the use of any proceeds of the 2010
Series B Bonds or any funds of the Commission, directly or indirectly, to acquire any securities
or obligations that would adversely affect the receipt of the Subsidy Payments, and will not take
or permit to be taken any other action or actions, which would cause any such 2010 Series B
Bond to be an "arbitrage bond" within the meaning of Section 148 of the Code or "federally
guaranteed" within the meaning of Section 149(b) of the Code and any such applicable
regulations promulgated from time to time thereunder. The Commission will observe and not
violate the requirements of Section 148 of the Code and any such applicable regulations. The
Commission will comply with all requirements of Sections 148 and 149(b) of the Code to the
extent applicable to the 2010 Series B Bonds.
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( c ) 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 t h e p r o v i s i o n s a n d p r o c e d u r e s o f t h e 2 0 1 0
B o n d s T a x C e r t i f i c a t e .
( d ) T h e C o m m i s s i o n w i l l n o t 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 2 0 1 0 .
S e r i e s B B o n d s o r a n y f u n d s o f t h e C o m m i s s i o n ( s o l o n g a s s u c h p r o c e e d s o r o t h e r f u n d s a r e
u n d e r i t s c o n t r o l ) o r a n y f u n d s h e l d b y t h e T r u s t e e u n d e r t h e I n d e n t u r e , d i r e c t l y o r i n d i r e c t l y , i n
a n y m a n n e r , a n d w i l l n o t 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 a d v e r s e l y a f f e c t t h e r e c e i p t
o f t h e S u b s i d y P a y m e n t s .
( 0 T h e T r u s t e e s h a l l , w i t h i n t h e 4 5 - d a y p e r i o d b e g i n n i n g o n t h e d a t e t h a t i s 9 0
d a y s b e f o r e t h e n e x 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 t h e 2 0 1 0 S e r i e s B B o n d s , f i l e F o r m
8 0 3 8 - C P o r a n y s u c c e s s o r f o r m d e s i g n a t e d b y t h e f e d e r a l g o v e r n m e n t , r e q u e s t i n g p a y m e n t o f t h e
S u b s i d y P a y m e n t s w i t h r e s p e c t t o t h e n e x t i n t e r e s t p a y m e n t o n t h e 2 0 1 0 S e r i e s B B o n d s . 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 a l l i n f o r m a t i o n a n d a s s i s t a n c e t o t h e T r u s t e e a s m a y b e r e q u i r e d t o
f a c i l i t a t e t h e t i m e l y f i l i n g o f a l l d o c u m e n t a t i o n r e q u i r e d t o e n a b l e t h e T r u s t e e t o c o l l e c t a n d
r e c e i v e t h e S u b s i d y P a y m e n t s w i t h r e s p e c t t o t h e 2 0 1 0 S e r i e s B B o n d s o n t h e C o m m i s s i o n ' s
b e h a l f . I m m e d i a t e l y u p o n r e c e i p t o f a n y S u b s i d y P a y m e n t s w i t h r e s p e c t t o t h e 2 0 1 0 S e r i e s B
B o n d s , t h e T r u s t e e s h a l l d e p o s i t s u c h a m o u n t s i n t o t h e R e v e n u e F u n d .
( 0 N o t w i t h s t a n d i n g a n y p r o v i s i o n s o f t h i s S e c t i o n 2 8 . 0 5 o r t h e 2 0 1 0 B o n d s T a x
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 s h a l l p r o v i d e t o t h e T r u s t e e 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 a n y s p e c i f i e d a c t i o n r e q u i r e d u n d e r t h i s S e c t i o n 2 8 . 0 5 i s n o l o n g e r r e q u i r e d o r t h a t
s o m e f u r t h e r o r d i f f e r e n t a c t i o n i s r e q u i r e d t o m a i n t a i n t h e r e c e i p t o f t h e S u b s i d y P a y m e n t s w i t h
r e s p e c t t o t h e 2 0 1 0 S e r i e s B B o n d 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 m a y c o n c l u s i v e l y r e l y o n
s u c h o p i n i o n i n c o m p l y i n g w i t h t h e 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 , 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 o r t h e 2 0 1 0 B o n d s T a x C e r t i f i c a t e , t h e c o v e n a n t s h e r e u n d e r s h a l l b e
d e e m e d t o b e m o d i f i e d t o t h a t e x t e n t .
A R T I C L E X X I X
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 1 0 B O N D S
S e c t i o n 2 9 . 0 1 . O p t i o n a l R e d e m p t i o n o f 2 0 1 0 S e r i e s A B o n d s .
( a ) O p t i o n a l R e d e m p t i o n o f 2 0 1 0 S e r i e s A B o n d s . T h e 2 0 1 0 S e r i e s A B o n d s
m a t u r i n g o n o r b e f o r e J u n e 1 , 2 0 _ 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 p r i o r t o t h e i r r e s p e c t i v e
s t a t e d m a t u r i t i e s . T h e 2 0 1 0 S e r i e s A B o n d s m a t u r i n g o n o r a f t e r J u n e 1 , 2 0 _ s h a 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 r e s p e c t i v e s t a t e d m a t u r i t i e 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 , f r o m a n y
s o u r c e o f a v a i l a b l e f u n d s , a s a w h o l e o r i n p a r t , o n a n y d a t e o n o r a f t e r J u n e 1 , 2 0 _ a t t h e
p r i n c i p a l a m o u n t o f 2 0 1 0 S e r i e s A 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 .
( b ) S u f f i c i e n t F u n d s R e q u i r e d f o r O p t i o n a l R e d e m p t i o n . A n y o p t i o n a l
r e d e m p t i o n o f 2 0 1 0 S e r i e s A B o n d s a n d n o t i c e t h e r e o f s h a l l b e c o n d i t i o n a l a n d r e s c i n d e d a n d
c a n c e l l 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 4 . 0 2 i f f o r a n y r e a s o n o n 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 m o n e y s a r e n o t a v a i l a b l e i n t h e R e d e m p t i o n F u n d o r o t h e r w i s e h e l d i n t r u s t f o r s u c h
p u r p o s 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 i n f u l l o n s a i d d a t e t h e p r i n c i p a l o f , i n t e r e s t , a n d a n y
p r e m i u m d u e o n t h e 2 0 1 0 S e r i e s A 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 H S W e s t : 2 6 0 9 6 4 9 8 3 . 2 9
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(c) Notice of Optional Redemption- Rescission. Any notice of optional
redemption of the 2010 Series A Bonds shall be delivered in accordance with Section 4.02 and
may be rescinded as provided in Section 4.02.
Section 29.02. Optional Redemption of 2010 Series B Bonds.
(a) [Optional Redemption of 2010 Series B Bonds. The 2010 Series B Bonds of
each maturity will be subject to redemption prior to their respective stated maturity dates, at the
option of the Commission, from any source of available funds, as a whole or in part by lot in
authorized denominations of $5,000 and any integral multiple thereof, on any date at a
redemption price equal to 100% of the principal amount of 2010 Series B Bonds to be redeemed
plus the Make -Whole Premium (as defined herein), together with accrued interest, if any, to the
date fixed for redemption.]
[Optional Redemption of 2010 Series B Bonds. The 2010 Series B Bonds
maturing on or before June 1, 20 shall not be subject to redemption prior to their respective
stated maturities. The 2010 Series B Bonds maturing on or after June 1, 20 shall be subject to
redemption prior to their respective stated maturities, at the option of the Commission, from any
source of available funds, as a whole or in part, on any date on or after June 1, 20 at the
principal amount of 2010 Series B Bonds called for redemption plus accrued interest to the date
fixed for redemption, without premium.]
(b) Extraordinary Optional Redemption of 2010 Series B Bonds. The 2010 Series
B Bonds shall be subject to redemption prior to maturity at the option of the Commission upon
the occurrence of a Tax Law Change, from any source of available funds, as a whole or in part,
on any date, at a Redemption Price equal to 100% of the principal amount of 2010 Series B
Bonds to be redeemed plus the Make -Whole Premium (using a discount rate equal to the
Comparable Treasury Yield plus [ ] basis points), if any, plus accrued interest to the date
fixed for redemption.
(c) Sufficient Funds Required for Optional Redemption. Any optional
redemption of 2010 Series B 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 2010 Series B Bonds called for redemption.
(d) Notice of Optional Redemption; Rescission. Any notice of optional
redemption of the 2010 Series B Bonds shall be delivered in accordance with Section 4.02 and
may be rescinded as provided in Section 4.02.
Section 29.03. Mandatory Redemption of 2010 Bonds From Mandatory Sinking
Account Payments.
(a) Mandatory Redemption of 2010 Series A Bonds. The 2010 Series A Bonds
maturing on June 1, 20 , June 1, 20_, and June 1, 20 , respectively, shall also be subject to
mandatory redemption prior to their respective stated maturities, in part, by lot, from Mandatory
Sinking Account Payments on each June 1 a Mandatory Sinking Account Payment is due as
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s p e c i f i e d i n S e c t i o n 2 9 . 0 3 ( a ) ( 1 ) , S e c t i o n 2 9 . 0 3 ( a ) ( 2 ) a n d S e c t i o n 2 9 . 0 3 ( a ) ( 3 ) , i n t h e p r i n c i p a l
a m o u n t e q u a l t o 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 d u e o n s u c h d a t e a n 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 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 b u t u n p a i d i n t e r e s t t o t h e
r e d e m p t i o n d a t e , w i t h o u t p r e m i u m .
( 1 ) 2 0 1 0 S e r i e s A T e r m B o n d s D u e J u n e 1 , 2 0 ( 1 . 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 f o r t h e 2 0 1 0 S e r i e s A T e r m B o n d s m a t u r i n g o n J u n e 1 , 2 0 _ s h a l l b e d u e i n
t h e a m o u n t s a n d o n t h e d a t e s a s f o l l o w s :
M a n d a t o r y
S i n k i n g A c c o u n t M a n d a t o r y
P a y m e n t s D a t e s S i n k i n g A c c o u n t
( J u n e 1 ) P a y m e n t s
* F i n a l M a t u r i t y
( 2 ) 2 0 1 0 S e r i e s A T e r m B o n d s D u e J u n e 1 , 2 0 [ 1 . 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 f o r t h e 2 0 1 0 S e r i e s A T e r m B o n d s m a t u r i n g o n J u n e 1 , 2 0 s h a l l b e d u e i n
t h e a m o u n t s a n d o n t h e d a t e s a s f o l l o w s :
M a n d a t o r y
S i n k i n g A c c o u n t M a n d a t o r y
P a y m e n t s D a t e s S i n k i n g A c c o u n t
( J u n e 1 ) P a y m e n t s
* F i n a l M a t u r i t y
( 3 ) 2 0 1 0 S e r i e s A T e r m B o n d s D u e J u n e 1 , 2 0 [ 1 . 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 f o r t h e 2 0 1 0 S e r i e s A T e r m B o n d s m a t u r i n g o n J u n e 1 , 2 0 _ s h a l l b e d u e i n
t h e a m o u n t s a n d o n t h e d a t e s a s f o l l o w s :
M a n d a t o r y
S i n k i n g A c c o u n t M a n d a t o r y
P a y m e n t s D a t e s S i n k i n g A c c o u n t
( J u n e 1 ) P a y m e n t s
* F i n a l M a t u r i t y
O H S W e s t : 2 6 0 9 6 4 9 8 3 2
1 1
1 2 8
(b) Mandatory Redemption of 2010 Series B Bonds. The 2010 Series B Bonds
maturing on June 1, 20� June 1, 20_, and June 1, 20respectively, shall also be subject to
mandatory redemption prior to their respective stated maturities, in part, by lot, from Mandatory
Sinking Account Payments on each June 1 a Mandatory Sinking Account Payment is due as.
specified in Section 29.03(b)(1), Section 29.03(b)(2) and Section 29.03(b)(3), in the principal
amount equal to the Mandatory Sinking Account Payment due on such date and at a redemption
price equal to 100% of the principal amount thereof, plus accrued but unpaid interest to the
redemption date, without premium.
(1) 2010 Series B Term Bonds Due June 1, 20f 1• The Mandatory Sinking
Account Payments for the 2010 Series B Term Bonds maturing on June 1, 20_ shall be due in
the amounts and on the dates as follows:
Mandatory
Sinking Account Mandatory
Payments Dates Sinking Account
(June 1) Payments
*Final Maturity
(2) 2010 Series B Term Bonds Due June 1, 20f 1. The Mandatory Sinking
Account Payments for the 2010 Series B Term Bonds maturing on June 1, 20_ shall be due in
the amounts and on the dates as follows:
Mandatory
Sinking Account Mandatory
Payments Dates Sinking Account
(June I) Payments
*Final Maturity
(3) 2010 Series B Tenn Bonds Due June I, 20f 1. The Mandatory Sinking
Account Payments for the 2010 Series B Term Bonds maturing on June I, 20_ shall be due in
the amounts and on the dates as follows:
OHS West-260964983.2
12
•
129
"
"
"
M a n d a t o r y
S i n k i n g A c c o u n t M a n d a t o r y
P a y m e n t s D a t e s S i n k i n g A c c o u n t
( J u n e 1 ) P a y m e n t s
* F i n a l M a t u r i t y
S e c t i o n 2 9 . 0 4 . 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 .
( a ) S e l e c t i o n o f 2 0 1 0 S e r i e s A 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 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 a n y 2 0 1 0 S e r i e s A 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 2 9 . 0 1 ( a ) . I f l e s s t h a n a l l 2 0 1 0 S e r i e s A 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 1 0 S e r i e s A
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 a p p r o p r i a t e a n d f a i r a n d
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 1 0 S e r i e s A 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 1 0 S e r i e s A 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 . I n t h e e v e n t o f a n o p t i o n a l r e d e m p t i o n o f t h e 2 0 1 0 S e r i e s A T e r m
B o n d s p u r s u a n t t o S e c t i o n 2 9 . 0 1 ( a ) , 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 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 u n d e r S e c t i o n 2 9 . 0 3 ( a ) , o r p o r t i o n s t h e r e o f , i n a n a g g r e g a t e a m o u n 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 2 0 1 0 S e r i e s A T e r m B o n d s s o o p t i o n a l l y r e d e e m e d , t h a t a r e t o b e
r e d u c e d a s a l l o c a t e d t o s u c h r e d e m p t i o n , a n d s u c 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 s h a l l
b e r e d u c e d a c c o r d i n g l y .
( b ) S e l e c t i o n o f 2 0 1 0 S e r i e s B 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 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 a n y 2 0 1 0 S e r i e s B 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 2 9 . 0 2 ( a ) .
( 1 ) N o n - B o o k - E n t r y B o n d s . I f t h e 2 0 1 0 S e r i e s B 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 o n l y f o r m , a n y r e d e m p t i o n o f l e s s t h a n a l l o f a m a t u r i t y o f t h e 2 0 1 0 S e r i e s B B o n d s
s h a l l b e e f f e c t e d b y t h e T r u s t e e a m o n g o w n e r s o n a p r o - r a t a b a s i s s u b j e c t t o 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 . T h e p a r t i c u l a r 2 0 1 0 S e r i e s B B o n d s t o b e r e d e e m e d s h a l l b e
d e t e r m i n e d b y t h e T r u s t e e , u s i n g s u c h m e t h o d a s i t s h a l l d e e m f a i r a n d a p p r o p r i a t e .
( 2 ) B o o k - E n t r y B o n d s . I f t h e 2 0 1 0 S e r i e s B B o n d s a r e r e g i s t e r e d i n b o o k -
e n t r y o n l y f o r m a n d s o l o n g a s D T C o r 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 i s t h e s o l e r e g i s t e r e d
o w n e r o f t h e 2 0 1 0 S e r i e s B B o n d s , i f l e s s t h a n a l l o f t h e 2 0 1 0 S e r i e s B B o n d s o f a m a t u r i t y a r e
c a l l e d f o r p r i o r r e d e m p t i o n , t h e p a r t i c u l a r 2 0 1 0 S e r i e s B B o n d s o r p o r t i o n s t h e r e o f t o b e
r e d e e m e d s h a l l b e s e l e c t e d o n a " P r o R a t a P a s s - T h r o u g h D i s t r i b u t i o n o f P r i n c i p a l " b a s i s i n
a c c o r d a n c e w i t h D T C p r o c e d u r e s , p r o v i d e d t h a t , s o l o n g a s t h e 2 0 1 0 S e r i e s B B o n d s a r e h e l d i n
b o o k - e n t r y f o r m , t h e s e l e c t i o n f o r r e d e m p t i o n o f s u c h 2 0 1 0 S e r i e s B 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 o p e r a t i o n a l a r r a n g e m e n t s o f D T C t h e n i n e f f e c t t h a t c u r r e n t l y p r o v i d e f o r
a d j u s t m e n t o f t h e p r i n c i p a l b y a f a c t o r p r o v i d e d p u r s u a n t t o D T C o p e r a t i o n a l a r r a n g e m e n t s . I f
t h e T r u s t e e d o e s n o t p r o v i d e t h e n e c e s s a r y i n f o r m a t i o n a n d i d e n t i f y t h e r e d e m p t i o n a s o n a P r o
O I - I S W e s t 2 6 0 9 6 4 9 8 3 . 2
1 3
1 3 0
Rata Pass -Through Distribution of Principal basis, the 2010 Series B Bonds shall be selected for
redemption by lot in accordance with DTC procedures. Redemption allocations made by DTC,
the DTC Participants or such other intermediaries that may exist between the Commission and
the Beneficial Owners are to be made on a "Pro Rata Pass -Through Distribution of Principal"
basis as described above. If the DTC operational arrangements do not allow for the redemption
of the 2010 Series B Bonds on a Pro Rata Pass -Through Distribution of Principal basis as
described above, then the 2010 Series B Bonds shall be selected for redemption by lot in
accordance with DTC procedures.
(3) 2010 Series B Term Bonds. In the event of an optional redemption of the
2010 Series B Term Bonds pursuant to Section 29.02(a) or Section 29.02(b), the Commission
shall designate the Mandatory Sinking Account Payments under Section 29.03(b), or portions
thereof, in an aggregate amount equal to the principal amount of 2010 Series B Term Bonds so
optionally redeemed, that are to be reduced as allocated to such redemption, and such Mandatory
Sinking Account Payments shall be reduced accordingly.
Section 29.05. Purchase In Lieu of Redemption. The Commission reserves the right at
all times to purchase any of its 2010 Bonds on the open market. In lieu of mandatory
redemption, the Commission may surrender to the Trustee for cancellation 2010 Bonds
purchased on the open market, and such 2010 Bonds shall be cancelled by the Trustee. If any
2010 Bonds are so cancelled, the Commission may designate the Mandatory Sinking Account
Payments or portions thereof within such Series of the 2010 Bonds so purchased that are to be
reduced as a result of such cancellation.
ARTICLE XXX
ESTABLISHMENT OF FUNDS AND ACCOUNTS AND APPLICATION THEREOF
Section 30.01. Funds and Accounts. The following funds and accounts are hereby
established in connection with the 2010 Bonds:
(a) To ensure the proper application of such portion of proceeds from the sale of
the 2010 Bonds to be applied to pay a portion of the Costs of the Project, there is hereby
established the 2010 Bonds Project Fund, such fund to be held by the Trustee.
(b) To ensure the proper application of such portion of proceeds from the sale of
the 2010 Bonds to be applied to pay the Costs of Issuance of the 2010 Bonds, there is hereby
established the 2010 Costs of Issuance Fund, such fund to be held by the Trustee.
Section 30.02. 2010 Bonds Project Fund. The monies set aside and placed in the 2010
Bonds Project Fund shall be expended for the purpose of paying a portion of the Costs of the
Project and shall not be used for any other purpose whatsoever. Pursuant to Section 5.11 of the
Indenture, all interest, profits and other income received from the investment of moneys in the
2010 Bonds Project Fund shall be deposited in the 2010 Bonds Project Fund.
OHS West:2609649832
14
•
•
131
"
"
( a ) 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 1 0 B o n d s P r o j e c t 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 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 C ( 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 p a i d ; ( i v ) t h e p u r p o s e b y g e n e r a l c l a s s i f i c a t i o n f o r w h i c h e a c h
o b l i g a t i o n t o b e p a i d w a s i n c u r r e d ; ( v ) t h a t o b l i g a t i o n s i n t h e s t a t e d a m o u n t s h a v e b e e n i n c u r r e d
b y t h e C o m m i s s i o n a n d a r e p r e s e n t l y d u e a n d p a y a b l e a n d t h a t e a c h i t e m t h e r e o f i s a p r o p e r
c h a r g e a g a i n s t t h e 2 0 1 0 B o n d s P r o j e c t F u n d a n d h a s n o t b e e n p r e v i o u s l y p a i d f r o m s a i d f u n d ;
( v i ) t h e a c c o u n t w i t h i n t h e 2 0 1 0 B o n d s P r o j e c t F u n d f r o m w h i c h s u c h p a y m e n t w i l l b e m a d e ;
a n d ( v i i ) t h a t t h e r e h a s n o t b e e n f i l e d w i t h o r s e r v e d u p o n t h e C o m m i s s i o n n o t i c e o f a n y l i e n ,
r i g h t t o l i e n o r a t t a c h m e n t u p o n , o r c l a i m a f f e c t i n g t h e r i g h t t o r e c e i v e p a y m e n t o f , a n y o f t h e
a m o u n t s p a y a b l e t o a n y o f t h e p e r s o n s n a m e d i n s u c h R e q u i s i t i o n , w h i c h h a s n o t b e e n r e l e a s e d
o r w i l l n o t b e r e l e a s e d s i m u l t a n e o u s l y w i t h t h e p a y m e n t o f s u c h o b l i g a t i o n , o t h e r t h a n
m a t e r i a l m e n ' s o r m e c h a n i c s ' l i e n s a c c r u i n g b y m e r e o p e r a t i o n o f l a w .
( b ) W h e n t h e C o m m i s s i o n d e t e r m i n e s t h a t t h e p o r t i o n o f t h e P r o j e c t f u n d e d w i t h
a n y S e r i e s o f 2 0 1 0 B o n d s h a s b e e n c o m p l e t e d , 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 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 b y t h e C o m m i s s i o n s t a t i n g : ( i ) t h e f a c t a n d d a t e o f s u c h c o m p l e t i o n ; ( i i ) t h a t a l l o f
t h e c o s t s t h e r e o f h a v e b e e n d e t e r m i n e d a n d p a i d ( o r t h a t a l l o f s u c h c o s t s h a v e b e e n p a i d l e s s
s p e c i f i e d c l a i m s t h a t a r e s u b j e c t t o d i s p u t e a n d f o r w h i c h a r e t e n t i o n i n t h e p r o p e r a c c o u n t w i t h i n
t h e 2 0 1 0 B o n d s P r o j e c t F u n d i s t o b e m a i n t a i n e d i n t h e f u l l a m o u n t o f s u c h c l a i m s u n t i l s u c h
d i s p u t e i s r e s o l v e d ) ; a n d ( i i i ) t h a t t h e T r u s t e e i s t o t r a n s f e r t h e r e m a i n i n g b a l a n c e i n t h e a c c o u n t
w i t h i n t h e 2 0 1 0 B o n d s P r o j e c t F u n d r e l a t i n g t o s u c h S e r i e s o f 2 0 1 0 B o n d s , l e s s t h e a m o u n t o f
a n y s u c h r e t e n t i o n , t o t h e R e v e n u e F u n d .
S e c t i o n 3 0 . 0 3 . 2 0 1 0 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 1 0 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 1 0 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 1 0 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
p a i d ; ( i v ) t h e p u r p o s e b y g e n e r a l c l a s s i f i c a t i o n f o r w h i c h e a c h o b l i g a t i o n t o b e p a i d w a s i n c u r r e d ;
a n d ( v ) t h a t o b l i g a t i o n s i n t h e s t a t e d a m o u n t s h a v e b e e n i n c u r r e d b y t h e C o m m i s s i o n a n d a r e
p r e s e n t l y d u e a n d p a y a b l e a n d t h a t e a c h i t e m t h e r e o f i s a p r o p e r c h a r g e a g a i n s t t h e 2 0 1 0 C o s t s o f
I s s u a n c e F u n d a n d h a s n o t b e e n p r e v i o u s l y p a i d f r o m s a i d f u n d . O n 1 , 2 0 1 1 a n y
r e m a i n i n g a m o u n t s i n t h e 2 0 1 0 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 t r a n s f e r r e d t o t h e R e v e n u e F u n d
a n d t h e 2 0 1 0 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 c l o s e d .
O H S W e s t : 2 6 0 9 6 4 9 8 3 . 2
1 5
1 3 2
ARTICLE XXXI
MISCELLANEOUS
Section 31.01. Severabilitv. If any covenant, agreement or provision, or any portion.
thereof, contained in this Third Supplemental Indenture, or the application thereof to any person
or circumstance, is held to be unconstitutional, invalid or unenforceable, the remainder of this
Third Supplemental Indenture, and the application of any such covenant, agreement or provision,
or portion thereof, to other Persons or circumstances, shall be deemed severable and shall not be
affected thereby, and this Third Supplemental Indenture and the 2010 Bonds issued pursuant
hereto shall remain valid, and the Holders of the 2010 Bonds shall retain all valid rights and
benefits accorded to them under this Indenture, the Act, and the Constitution and statutes of the
State.
Section 31.02. Parties Interested Herein. Nothing in this Third Supplemental
Indenture expressed or implied is intended or shall be construed to confer upon, or to give to, any
person or entity, other than the Commission, the Trustee, each Credit Provider, if any, and the
Holders of the 2010 Bonds, any right, remedy or claim under or by reason of this Third
Supplemental Indenture or any covenant, condition or stipulation hereof; and all the covenants,
stipulations, promises and agreements in this Third Supplemental Indenture contained by and on
behalf of the Commission shall be for the sole and exclusive benefit of the Commission, the
Trustee, each Credit Provider, if any, and the Holders of the 2010 Bonds.
Section 31.03. Headings Not Binding. The headings in this Third Supplemental
Indenture are for convenience only and in no way define, limit or describe the scope or intent of
any provisions or sections of this Third Supplemental Indenture.
Section 31.04. Notice Addresses. Except as otherwise provided herein, it shall be
sufficient service or giving of notice, request, complaint, demand or other paper if the same shall
be duly mailed by registered or certified mail, postage prepaid, addressed to the Notice Address
for the appropriate party or parties as provided in Exhibit B hereto. Any such entity by notice
given hereunder may designate any different addresses to which subsequent, notices, certificates
or other communications shall be sent, but no notice directed to any one such entity shall be
thereby required to be sent to more than two addresses. Any such communication may also be
sent by Electronic Means, receipt of which shall be confirmed.
Section 31.05. Notices to Rating Agencies. The Trustee shall provide notice to the
Rating Agencies of the following events with respect to the 2010 Bonds:
(1) Change in Trustee;
(2) Amendments to the Indenture;
(3) Provision, Expiration, Termination, substitution or extension of a 2010
Credit Enhancement, if any, or any 2010 Credit Provider thereunder; and
(4) Redemption or defeasance of any 2010 Bonds.
OHS West260964983.2
16
133
"
S e c t i o n 3 1 . 0 6 . I n d e n t u r e t o R e m a i n i n E f f e c t . S a v e a n d e x c e p t a s a m e n d e d a n d
s u p p l e m e n t e d b y t h i s T h i r d S u p p l e m e n t a l I n d e n t u r e , t h e I n d e n t u r e s h a l l r e m a i n i n f u l l f o r c e a n d
e f f e c t .
S e c t i o n 3 1 . 0 7 . E f f e c t i v e D a t e o f T h i r d 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 T h i r d
S u p p l e m e n t a l 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 3 1 . 0 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 T h i r d S u p p l e m e n t a l 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 t I S W e s t 2 6 0 9 6 4 9 8 3 . 2
1 7
1 3 4
"
1 3 5
i
IN WITNESS WHEREOF, the parties hereto have executed this Third Supplemental
Indenture by their officers thereunto duly authorized as of the day and year first written above.
(Seal)
A 1"1'EST:
Clerk of the
Riverside County Transportation Commission
APPROVED AS TO FORM:
By:
General Counsel
OHS West2609649832
RIVERSIDE COUNTY TRANSPORTATION
COMMISSION
By:
Executive Director
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:
Authorized Officer
18
136
"
1 3 7
"
E X H I B I T A
F O R M O F 2 0 1 0 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 1 0 S e r i e s
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
J u n e 1 , 2 0 _ , 2 0 1 0
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 :
[ T O C O M E ]
O H S W e s e 2 6 0 9 6 4 9 8 3 . 2
A - 1
C U S I P
D o l l a r s
1 3 8
"
"
1 3 9
IN WITNESS WHEREOF the Riverside County Transportation Commission has caused
this Bond to be executed in its name and on its behalf by the manual or facsimile signature of its
duly authorized representatives and its seal to be affixed hereto all as of the Issue Date set forth
above.
(Seal)
Attest:
RIVERSIDE COUNTY
TRANSPORTATION COMMISSION
By:
Chair of the Board of Commissioners
Auditor -Controller
[FORM OF CERTIFICATE OF AUTHENTICATION]
This Bond is one of the 2010 Series _ Bonds described in the within mentioned
Indenture and was authenticated on the date set forth below.
Date of Authentication:
OHS Wes12609649832
U.S. BANK NATIONAL ASSOCIATION, as
Trustee
By:
Authorized Officer
A-2
140
"
[ D T C L E G E N D ]
U n l e s s t h i s B o n d i s p r e s e 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 o f 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 t o t h e i s s u e r o r i t s a g e n t f o r r e g i s t r a t i o n o f t r a n s f e r , e x c h a n g e o r p a y m e n t , a n d a n y .
B o n d i s s u e d i s 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 . o r s u c h o t h e r n a m e a s r e q u e s 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 o f 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 a n d a n y p a y m e n t i s m a d e t o C e d e &
C o . , A N Y T R A N S F E R , P L E D G E O R O T H E R U S E H E R E O F F O R V A L U E O R O T H E R W I S E
B Y O R T O A N Y P E R S O N I S W R O N G F U L s i n c e t h e r e g i s t e r e d O w n e r h e r e o f , C e d e & C o . , h a s
a n i n t e r e s t h e r e i n .
[ F O R M O F A S S I G N M E N T ]
F O R V A L U E R E C E I V E D , t h e u n d e r s i g n e d h e r e b y s e l l s , a s s i g n s a n d t r a n s f e r s u n t o
( P l e a s e P r i n t o r T y p e N a m e a n d A d d r e s s o f A s s i g n e e )
P L E A S E I N S E R T S O C I A L S E C U R I T Y O R O T H E R
T A X I D E N T I F I C A T I O N N U M B E R O F A S S I G N E E
t h e w i t h i n b o n d a n d a l l r i g h t s t h e r e u n d e r , a n d h e r e b y i r r e v o c a b l y c o n s t i t u t e s a n d a p p o i n t s
t o t r a n s f e r t h e w i t h i n B o n d o n t h e b o o k s k e p t f o r r e g i s t r a t i o n t h e r e o f w i t h f u l l p o w e r o f
s u b s t i t u t i o n i n t h e p r e m i s e s .
D a t e d :
S i g n a t u r e :
S I G N A T U R E G U A R A N T E E D :
N o t i c e : S i g n a t u r e m u s t b e g u a r a n t e e d b y a n
e l i g i b l e g u a r a n t o r f i r m .
O H S W e s t : 2 6 0 9 6 4 9 8 3 . 2
( S i g n a t u r e o f A s s i g n o r )
N o t i c e : T h e s i g n a t u r e o n t h i s a s s i g n m e n t m u s t
c o r r e s p o n d w i t h t h e n a m e o f t h e r e g i s t e r e d H o l d e r
a s i t a p p e a r s u p o n t h e f a c e o f t h e w i t h i n B o n d i n
e v e r y p a r t i c u l a r w i t h o u t a l t e r a t i o n o r e n l a r g e m e n t o r
a n y c h a n g e w h a t s o e v e r .
A - 3
1 4 2
"
1 4 3
"
"
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
S t r e e t A d d r e s s :
4 0 8 0 L e m o n S t r e e t , 3 ` d F l o o r
R i v e r s i d e , C a l i f o r n i a 9 2 5 0 1
M a i l i n g A d d r e s s :
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 9 2 6
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
O H S W e s t : 2 6 0 9 6 4 9 8 3 . 2
B - 1
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 : ( 2 1 2 ) 4 3 8 - 2 0 0 0
F a x : ( 2 1 2 ) 4 3 8 - 2 1 5 7
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
7 W o r l d T r a d e C e n t e r , 2 5 t h F l o o r
2 5 0 G r e e n w i c h S t r e e t
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
3 3 W h i t e h a l l S t r e e t
N e w Y o r k , N e w Y o r k 1 0 0 0 4
1 4 4
"
1 4 5
OHS Wesc260964983 2
INDEX TO EXHIBITS
EXHIBIT C
FORM OF 2010 BONDS PROJECT FUND REQUISITION
[TO COME]
C-I
146
ATTACHMENT 4
Stradling Yocca Carlson & Rauth
Draft dated August 17, 2010
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
SALES TAX REVENUE BONDS
(LIMITED TAX BONDS)
2010 SERIES A (TAX EXEMPT) AND
2010 SERIES B (TAXABLE BUILD AMERICA BONDS)
BOND PURCHASE AGREEMENT
,20I0
Riverside County Transportation Commission
P.O. Box 12008
Riverside, California 92502
Ladies and Gentlemen:
The undersigned, Barclays Capital Inc., as representative (the "Representative"), acting on
behalf of itself and the underwriter listed in Exhibit A hereto, (collectively, the "Underwriters"),
offers to enter into this Bond 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), 2010 Series A (Tax Exempt) (the "Series A
Bonds"), and 2010 Series B (Taxable Build America Bonds) (the "Series B Bonds" and together with
the Series A Bonds, 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 as of
June 1, 2008 (the "First Supplemental Indenture"), the Second Supplemental Indenture, dated as of
October I, 2009 (the "Second Supplemental Indenture") and the Third Supplemental Indenture, dated
as of November 1, 2010 (the "Third Supplemental Indenture"). The Original Indenture, the First
Supplemental Indenture, the Second Supplemental Indenture and the Third 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 Standard 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 terns 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 to (i) fund a portion of the cost of the Project, as
defined in the Indenture (ii) fund the retirement of all or a portion of the commercial paper .program
outstanding at the time of the issuance of the Bonds, (iii) fund a reserve fund for the Bonds, and
(iv) pay costs of issuance of the Bonds.
The Commission will undertake, pursuant to the Indenture and a Continuing Disclosure
Agreement with the Trustee dated 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
DOCSOC/ 1427909v3/029999-0000
147
requirements of any prior continuing disclosure undertaking. A description of this undertaking is set
forth in the Official Statement.
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 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 the Closing Date. The Underwriters agree to purchase the
Bonds at the aggregate purchase price of $ (consisting of the aggregate principal amount
of the Bonds less $ Underwriters' discount). The Bonds mature in the years and
principal amounts and bear interest at the rates set forth in Exhibit B hereto and shall be substantially
in the form described in the Indenture, 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 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. Subsequent to 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
, 2010 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)(l) 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 final pricing information on
the Bonds on a timely basis, (2) disseminate to the Underwriters copies of the final Official
DOC SOC/ 1427909v3/029999-0000
2
•
148
"
S t a t e m e n t , i n c l u d i n g a n y s u p p l e m e n t s p r e p a r e d b y t h e C o m m i s s i o n , a n d ( 3 ) p r o m p t l y f i l e a c o p y 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 , i n c l u d i n g a n y s u p p l e m e n t s p r e p a r e d b y 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 .
4 . T h e C l o s i n g . A t 5 : 0 0 a . m . , C a l i f o r n i a t i m e , o n , 2 0 1 0 , 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 t o b e d e l i v e r e d t h e 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 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 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 ( " 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 , S a n F r a n c i s c o , 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 , 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 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 i n f o r m a t i o n c o n c e m i n g D T C a n d t h e b o o k - e n t r y s y s t e m ( c o l l e c t i v e l y , t h e
" E x c l u d e d I n f o r m a t i o n " ) , 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 s , 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 t h e 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 o f t h e
C o m m i s s i o n i n c o n f o r m i t y w i t h a n d e n t i t l e d t o t h e b e n e f i t a n d s e c u r i t y o f t h e I n d e n t u r e , e x c e p t a s
e n f o r c e m e n t o f s u c h o b l i g a t i o n s m a y b e l i m i t e d b y b a n k r u p t c y , i n s o l v e n c y , r e o r g a n i z a t i o n ,
m o r a t o r i u m o r s i m i l a r l a w s o r e q u i t a b l e p r i n c i p l e s r e l a t i n g t o o r l i m i t i n g c r e d i t o r s r i g h t s g e n e r a l l y ,
D O C S O C / 1 4 2 7 9 0 9 v 3 / 0 2 9 9 9 9 - 0 0 0 0
3
1 4 9
the application of equitable principles, the exercise of judicial discretion and the limitations on legal
remedies against public entities in the State of California;
(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 terns, 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;
(f) the Commission is not in breach of or default under any applicable law or
administrative regulation of the State of California or the United States of America or any applicable
judgment, decree, resolution, contract or other instrument or any agreement 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
or any agreement 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 of competent
jurisdiction, 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. of the Commission adopted on October 13, 2010 (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 the
consummation of the transactions contemplated hereby or thereby or which might materially
DOC S OC/ 14 27 909v3/029999-0000
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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 , o r
i n f o r m a t i o n b e c o m e s k n o w n , 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 ;
( 1 ) f o r a p e r i o d o f 2 5 d a y s s u b s e q u e n t t o t h e C l o s i n g D a t e ( 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 , 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 , t o 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 n y
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 t h e 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 , 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 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 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 , s u c h e v e n t r e q u i r e s t h e p r e p a r a t i o n a n d p u b l i c a t i o n o f 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 s h a l l p r e p a r e a n d d e l i v e r t o t h e
U n d e r w r i t e r s ( a t t h e C o m m i s s i o n ' s e x p e n s e f o r 2 5 d a y s f r o m t h e d a t e o f t h e C l o s i n g ) , a s m a n y
c o p i e s o f a n a m e n d m e n t o r s u p p l e m e n t w h i c h w i l l c o r r e c t s u c h s t a t e m e n t o r o m i s s i o n a s 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 . D u r i n g t h e D e l i v e r y P e r i o d , t h e C o m m i s s i o n s h a l l f u r n i s h
s u c h i n f o r m a t i o n a s t h e R e p r e s e n t a t i v e m a y f r o m t i m e t o t i m e r e a s o n a b l y r e q u e s t ;
( m ) i f t h e O f f i c i a l S t a t e m e n t i s a m e n d e d o r s u p p l e m e n t e d p u r s u a n t t o p a r a g r a p h
4 ( k ) h e r e o f , a t t h e t i m e o f e a c h s u p p l e m e n t o r a m e n d m e n t t h e r e t o a n d ( u n l e s s s u b s e q u e n t l y a g a i n
s u p p l e m e n t e d o r a m e n d e d p u r s u a n t t o s u c h p a r a g r a p h ) a t a l l t i m e s s u b s e q u e n t t h e r e t o u p t o a n d
i n c l u d i n g t h e C l o s i n g D a t e , t h e O f f i c i a l S t a t e m e n t 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 ( e x c l u d i n g
D O C S O C / 1 4 2 7 9 0 9 v 3 / 0 2 9 9 9 9 - 0 0 0 0
5
1 5 1
therefrom the Excluded Information, 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;
and
(n) between the date of this Purchase Agreement and the date of Closing, except
for issuances of commercial paper under the Commission's existing commercial paper program, 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.
5. The Representative, on behalf of itself and the Underwriters, has entered into this
Purchase Agreement in reliance upon the representations and warranties of the Commission
contained herein and the representations and warranties to be contained in the documents and
instruments to be delivered at the Closing and upon the performance by the Commission of its
obligations both on and as of the date hereof and as of the Closing Date. Accordingly, the
Underwriters' obligations under this Purchase Agreement to purchase, to accept delivery of and to
pay for the Bonds shall be subject, at the sole option of the Representative, to the accuracy in all
material respects of the representations and warranties of the Commission contained herein as of the
date hereof and as of the Closing Date, to the accuracy in all material respects of the statements of
the officers and other officials of the Commission made in any certificate or other document
furnished pursuant to the provisions hereof, to the performance by the Commission of its obligations
to be performed hereunder and under such documents and instruments at or prior to the Closing Date,
and to the following additional conditions:
(a) Prior to the Closing, the Commission's Documents shall have been duly
authorized, executed and delivered and none of such documents shall have been amended, 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 of securities in general 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;
DOCSOC/ 1427909v3/029999-0000
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( 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 , u p t o a n d i n c l u d i n g t h e C l o s i n g , 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 ( ` B O E " ) s h a l l n o t h a v e s u s p e n d e d o r a d v i s e d t h e C o m m i s s i o n o f
s u s p e n s i o n o f t h e c o l l e c t i o n o f t h e S a l e s T a x o r t h e e s c r o w o f a n y p r o c e e d s t h e r e o f b y t h e B O E , a n d
c o u n s e l t o 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 b e e n a d v i s e d o f t h e s u s p e n s i o n o f t h e c o l l e c t i o n o f t h e .
S a l e s T a x o r t h e e s c r o w o f a n y p r o c e e d s t h e r e o f b y t h e B O E o r h a v e a n y q u e s t i o n a s t o t h e v a l i d i t y
o f t h e S a l e s T a x ;
( g ) T h e C o m m i s s i o n s h a l l p e r f o r m , o r h a v e p e r f o r m e d a t o r p r i o r t o t h e t i m e o f
t h e C l o s i n g , a l l o f i t s o b l i g a t i o n s r e q u i r e d u n d e r o r s p e c i f i e d i n t h e C o m m i s s i o n ' s D o c u m e n t s , a s
a m e n d e d t o t h e d a t e o f C l o s i n g , t o b e p e r f o r m e d a t o r p r i o r t o t h e C l o s i n g ;
( h ) A t o r p r i o r t o t h e C l o s i n g , t h e U n d e r w r i t e r s s h a l l r e c e i v e , a m o n g o t h e r i t e m s ,
t h e f o l l o w i n g , i n e a c h c a s e r e a s o n a b l y s a t i s f a c t o r y i n f o r m a n d s u b s t a n c e t o t h e R e p r e s e n t a t i v e a n d
U n d e r w r i t e r s ' C o u n s e l :
( i )
E x e c u t e d c o p i e s o f e a c h 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 i ) T h e a p p r o v i n g o p i n i o n o f B o n d C o u n s e l , 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 t o t h e O f f i c i a l S t a t e m e n t a s A p p e n d i x E ;
( i i i ) A s u p p l e m e n t a l 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
C o m m i s s i o n a n d t h e U n d e r w r i t e r s , s t a t i n g t h e U n d e r w r i t e r s m a y r e l y u p o n t h e o p i n i o n r e f e r r e d t o i n
s u b p a r a g r a p h ( i i ) h e r e o f a s t h o u g h a d d r e s s e d t o t h e m a n d t o t h e f o l l o w i n g e f f e c t :
( A ) T h e 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 i n t h e
s e c t i o n s e n t i t l e d " T H E 2 0 1 0 B O N D S , " " 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
2 0 1 0 B O N D S , " " T A X M A T T E R S , " " 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 n d " A P P E N D I X E P R O P O S E D F O R M O F B O N D C O U N S E L
O P I N I O N " i n s o f a r a s s u c h i n f o r m a t i o n p u r p o r t s t o s u m m a r i z e 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 n d
s u c h c o u n s e l ' s o p i n i o n r e l a t i n g t o t h e t a x e x e m p t i o n o f i n t e r e s t o n t h e B o n d s , a r e a c c u r a t e i n a l l
m a t e r i a l r e s p e c t s ; a n d
( B ) T h e B o n d s a r e n o t s u b j e c t t o t h e r e g i s t r a t i o n r e q u i r e m e n t s o f
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 t h e I n d e n t u r e i s e x e m p t f r o m q u a l i f i c a t i o n p u r s u a n t t o
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 ;
( i v ) T h e o p i n i o n o f F u l b r i g h t & J a w o r s k i 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 t h e 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 A p p e n d i c e s [ A a n d B J 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 ) ;
D O C S O C / I 4 2 7 9 0 9 v 3 / 0 2 9 9 9 9 - 0 0 0 0
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(v) An opinion, dated the date of the Closing and addressed to the
Underwriters, of Best, Best & Krieger LLP, General Counsel to the Commission, to the effect that:
(i) the Commission is a county transportation commission duly organized under the laws of the State;
(ii) the resolution or resolutions of the Commission approving and authorizing the execution and.
delivery of the Commission's Documents by the Commission (the "Resolutions") were duly adopted
at meetings of the Commission, which were called and held pursuant to law and with all public
notice required by law and at which a quorum was present and acting at the time of adoption; (iii) to
the best knowledge of such counsel, there is no action, suit, proceeding or investigation at law or in
equity before or by any court, public board or body of competent jurisdiction, pending or threatened
against or affecting the Commission, to restrain or enjoining the enforcement of the Commission's
Documents or in any way contesting or affecting the validity of the Commission's Documents;
(iv) the execution and delivery of the Commission's Documents by the Commission, the adoption of
the Resolutions, and compliance by the Commission with the provisions of the foregoing, as
appropriate, under the circumstances contemplated thereby, does not and will not in any material
respect conflict with or constitute on the part of the Commission a breach or default under any
agreement or other instrument to which the Commission is a party or by which it is bound (and of
which such counsel is reasonably aware) or any existing law, regulation, court order or consent
decree to which the Commission is subject; (v) the Commission's Documents have been duly
authorized, executed and delivered, by the Commission and, assuming due authorization, execution
and delivery by the other parties thereto, the Commission's Documents constitute legal, valid and
binding agreements of the Commission, enforceable in accordance with their respective terms,
subject in each case to laws relating to bankruptcy, insolvency or other laws affecting the
enforcement of creditors' rights generally and the application of equitable principles if equitable
remedies are sought; (vi) except as described in the Official Statement, no authorization, approval,
consent, or other order of the State or any other governmental authority or agency within the State
having jurisdiction over the Commission is required for the valid authorization, execution, delivery
and performance by the Commission of the Commission's Documents which has not been obtained;
and (vii) without having undertaken to determine independently the accuracy, completeness or
fairness of the statements contained in the Official Statement and based upon the information made
available to such counsel in the course of its participation in the preparation of the Official Statement
as counsel for the Commission, nothing has come to such counsel's attention which would cause
them to believe that the Official Statement (excluding therefrom the financial statements and the
statistical data included in the Official Statement, as to which no opinion need be expressed), as of
the date thereof and as of the Closing Date, contained an untrue 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 Excluded
Information) 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 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
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"
t o b e l e v i e d a n d c o l l e c t e d , ( F ) t o p l e d g e t h e S a l e s T a x R e v e n u e s t o t h e p a y m e n t o f t h e B o n d s a n d
( G ) t o c a r r y o u t a n d t o c o n s u m m a t e 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 b y , a n d t o p e r f o r m a l l o f i t s
o b l i g a t i o n s u n d e r , t h e B o n d R e s o l u t i o n , t h e C o m m i s s i o n ' s D o c u m e n t s , t h e B o n d s a n d t h e O f f i c i a l
S t a t e m e n t ; ( i v ) t h e C o m m i s s i o n h a s ( A ) d u l y a u t h o r i z e d a n d a p p r o v e d t h e O f f i c i a l S t a t e m e n t ,
( B ) d u l y a u t h o r i z e d a n d a p p r o v e d 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 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 i t s o b l i g a t i o n s u n d e r , t h e B o n d s a n d t h e C o m m i s s i o n ' s D o c u m e n t s , ( C ) d u l y a d o p t e d t h e B o n d
R e s o l u t i o n a n d ( D ) d u l y a u t h o r i z e d a n d a p p r o v e d t h e u s e o f 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 B o n d s , a s
c o n t e m p l a t e d b y t h e O f f i c i a l S t a t e m e n t ; ( v ) a t o r p r i o r t o t h e t i m e a n d d a t e t h e C l o s i n g , t h e B o n d s
w i l l h a v e b e e n d u l y 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 e a c h o f t h e m a n d t h e B o n d
R e s o l u t i o n a n d t h e C o m m i s s i o n ' s D o c u m e n t s w i l l 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 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 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 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 ,
e x c e p t t o t h e e x t e n t t h a t t h e e n f o r c e a b i l i t y m a y b e l i m i t e d b y b a n k r u p t c y , i n s o l v e n c y , a r r a n g e m e n t ,
m o r a t o r i u m o r o t h e r l a w s a f f e c t i n g t h e r i g h t s o f c r e d i t o r s g e n e r a l l y , e q u i t a b l e r e m e d i e s , j u d i c i a l
d i s c r e t i o n a n d t h e l i m i t a t i o n s o n l e g a l r e m e d i e s a g a i n s t l o c a l t r a n s p o r t a t i o n a u t h o r i t i e s i n t h e S t a t e ;
( v i ) t h e B o n d R e s o l u t i o n , 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 h e B o n d s c o n f o r m i n a l l m a t e r i a l
r e s p e c t s t o t h e d e s c r i p t i o n s t h e r e o f i n t h e O f f i c i a l S t a t e m e n t ; ( v i i ) t h e f i n a n c i a l 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 a n d t h e 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 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
p r e s e n t f a i r l y t h e f i n a n c i a l c o n d i t i o n a n d r e s u l t s o f t h e o p e r a t i o n o f t h e C o m m i s s i o n a t t h e d a t e s a n d
f o r t h e p e r i o d s t h e r e i n s p e c i f i e d a n d s u c h f i n a n c i a l 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 a n d t h e 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 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 r e p r e s e n t e d i n c o n f o r m i t y 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 p p l i e d o n a b a s i s s u b s t a n t i a l l y c o n s i s t e n t w i t h t h a t o f 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 e x c e p t a s o t h e r w i s e s p e c i f i c a l l y n o t e d i n t h e O f f i c i a l
S t a t e m e n t ; ( v i i i ) n o l i t i g a t i o n o f a n y n a t u r e i s n o w p e n d i n g 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 , t h r e a t e n e d i n a n y c o u r t o r b e f o r e a n y g o v e r n m e n t a l a g e n c y o f c o m p e t e n t j u r i s d i c t i o n :
( A ) r e s t r a i n i n g o r e n j o i n i n g , o r s e e k i n g t o r e s t r a i n o r e n j o i n , t h e i s s u a n c e , s a l e , e x e c u t i o n o r d e l i v e r y
o f t h e B o n d s ; o r ( B ) 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 ( 1 ) t h e v a l i d i t y o r e n f o r c e a b i l i t y o f t h e B o n d s ,
o r ( 2 ) a n y p r o c e e d i n g s o f 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 a k e n w i t h r e s p e c t t o t h e i s s u a n c e o r s a l e o f
t h e B o n d s , o r ( 3 ) a d o p t i o n o f t h e B o n d R e s o l u t i o n o r 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 , o r ( 4 ) t h e l e v y a n d c o l l e c t i o n o f t h e S a l e s T a x , o r ( 5 ) 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
e f f e c t e d b y t h e I n d e n t u r e , 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 , o r ( 6 ) 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
a n d a p p r o v i n g t h e S a l e s T a x o r t h e l e v y o r c o l l e c t i o n o f t h e S a l e s T a x , o r ( 7 ) t h e e x i s t e n c e o r p o w e r s
o f t h e C o m m i s s i o n ; o r ( C ) i n a n y m a n n e r q u e s t i o n i n g ( 1 ) t h e p r o c e e d i n g s o r a u t h o r i t y f o r t h e
i s s u a n c e o f t h e B o n d s , o r ( 2 ) a n y p r o v i s i o n m a d e o r a u t h o r i z e d f o r t h e p a y m e n t o f t h e B o n d s , o r
( 3 ) t h e e x i s t e n c e o r o p e r a t i o n s o f t h e C o m m i s s i o n , o r ( 4 ) t h e p o w e r o f t h e C o m m i s s i o n t o i s s u e t h e
B o n d s , o r ( 5 ) t h e p o w e r o f t h e C o m m i s s i o n t o u n d e r t a k e a n y o t h e r t r a n s 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 w i t h t h i s p r o p o s e d f i n a n c i n g ; o r ( D ) w h i c h w o u l d h a v e a m a t e r i a l a d v e r s e e f f e c t u p o n t h e
o p e r a t i o n s o f t h e C o m m i s s i o n r e l a t i n g t o t h e B o n d s o r t o t h e c o n t e m p l a t e d u s e o f t h e p r o c e e d s
t h e r e o f ; ( i x ) n o n e o f t h e C o m m i s s i o n ' s p r o c e e d i n g s o r a u t h o r i t y f o r t h e i s s u a n c e , s a l 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 B o n d s , o r 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 , o r t h e
a d o p t i o n o f t h e B o n d R e s o l u t i o n 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 h a s b e e n r e p e a l e d , m o d i f i e d ,
a m e n d e d , r e v o k e d o r r e s c i n d e d ; ( x ) n o a p p r o v a l , p e r m i t , c o n s e n t o r a u t h o r i z a t i o n o f a n y
g o v e r n m e n t a l o r p u b l i c a g e n c y , a u t h o r i t y o r p e r s o n 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 n o t
a l r e a d y o b t a i n e d a n d n o p r o c e e d i n g s n o t a l r e a d y h a d a r e r e q u i r e d i n c o n n e c t i o n w i t h ( A ) t h e i s s u a n c e
a n d s a l e o f t h e B o n d s , ( B ) 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 o f , o r t h e p e r f o r m a n c e b y i t
o f i t s o b l i g a t i o n s u n d e r , t h e B o n d s , 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 h e B o n d R e s o l u t i o n o r
( C ) e x c e p t a s c o n t e m p l a t e d b y t h e O f f i c i a l S t a t e m e n t , t h e i s s u a n c e a n d s a l e o f t h e B o n d s o r t h e
a p p l i c a t i o n o f t h e p r o c e e d s o f t h e s a l e t h e r e o f ; ( x i ) t h e r e i s n o m a t e r i a l a d v e r s e c h a n g e i n t h e
c o n d i t i o n o r a f f a i r s o f t h e C o m m i s s i o n t h a t w o u l d m a k e i t u n r e a s o n a b l e f o r t h e U n d e r w r i t e r s o r o t h e r
p u r c h a s e r s o f t h e B o n d s t o r e l y u p o n t h e O f f i c i a l S t a t e m e n t i n c o n n e c t i o n w i t h t h e r e s a l e o f t h e
D O C S O C / 1 4 2 7 9 0 9 v 3 / 0 2 9 9 9 9 - 0 0 0 0
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Bonds, and the Underwriters are hereby authorized to distribute copies of the Official Statement in
connection with the resale of the Bonds; and (xii) 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, that:
(A) the Trustee 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 the Indenture and perform its duties under the Indenture and the
Continuing Disclosure Agreement (together, the "Trustee Documents");
(B) the Trustee is duly authorized to enter into the Indenture and
Trustee has duly executed and delivered the Indenture;
(C) the execution and delivery of the Indenture and compliance
with the provisions on the Trustee's part contained in the Trustee Documents, 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 Trustee 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 any of the, properties or assets held
by the Trustee 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 Trustee Documents;
(D) to the best of the knowledge of the Trustee, 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 the Trustee, as such but not in its individual capacity, affecting the existence of the
Trustee, 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 Indenture, or contesting the powers of the Trustee 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 Indenture; and
(E) the Trustee 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 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;
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(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) A tax certificate relating to the Bonds in form satisfactory to Bond
Counsel and the Representative;
(xiv) 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;
(xv) 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;
(xvi) A Certificate, dated the Closing Date, signed by an authorized
representative of Fieldman Rolapp & Associates, Financial Advisor to the Commission, to the effect
that no information came to such representative's attention which gives such representative reason to
believe that the statements and information in the Official Statement under the caption "PLAN OF
FINANCE" contains any untrue statement of a material fact or omits to state a material fact
necessary in order to make the statements made therein, in light of the circumstances under which
they were made, not misleading;
(xvii) A certified copy of the proceedings relating to authorization and
approval of the Sales Tax, including: (i) a certified copy of the Ordinance; and (ii) a certification
from the Registrar of Voters in the County of Riverside conceming results of the November 5, 2002
election;
(xviii) A copy of the executed Agreement for State Administration of
Transactions and Use Tax, between the Commission and the California State Board of Equalization,
including all amendments thereto;
(xix) A copy of the Blanket Letter of Representation to DTC relating to the
Bonds signed by DTC and the Commission;
(xx) On or prior to the Closing Date, the 2009 Liquidity Facility shall have
been delivered to the Trustee;
(xxi) A certificate of the 2009 Liquidity Provider dated the Closing Date, in
the form attached hereto as Exhibit A;
(xxii) An opinion or opinions of counsel to the 2009 Liquidity Provider,
dated the Closing Date, addressed to the Underwriters and the Commission, in form and substance
acceptable to the Underwriters and the Commission, and satisfactory to Bond Counsel, (i) relating to
the authority of the 2009 Liquidity Provider to issue the 2009 Liquidity Facility, (ii) to the effect that
the 2009 Liquidity Facility has been executed and issued and is valid and binding on the 2009
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Liquidity Provider enforceable in accordance with its terns, and (iii) confirming the accuracy of the
disclosure contained under the caption "THE LIQUIDITY FACILITIES" in the Official Statement;
(xxiii) A verification report by Causey, Demgen & Moore, Inc.;
(xxiv) A defeasance opinion from Bond Counsel, dated the Closing Date and
addressed to the Trustee, the 2009 Liquidity Provider and the Underwriters to the effect that the
obligations of the Commission with respect to the 2008 Bonds have ceased, terminated, become void
and be completely discharged and satisfied except as expressly set forth in the Indenture;
(xxv) An executed copy of the Continuing Disclosure Agreement; and
(xxvi) Such additional certificates, legal opinions of Bond Counsel,
Disclosure Counsel or other counsel and such other instruments or documents as Stradling Yocca
Carlson & Rauth, a Professional Corporation ("Underwriters' Counsel"), Disclosure Counsel or
Bond Counsel reasonably request to evidence the truth and accuracy as of the date hereof and as of
the Closing Date of information contained in the Official Statement and the representations and
warranties contained herein and in the Official Statement and the due satisfaction as or prior to the
Closing Date of all conditions then to be satisfied in connection with the transaction contemplated
hereby.
6. 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 Official Statement except for
the Excluded Information or the omission (other than omissions in the Excluded Information) to state
in the Official Statement a material fact necessary to make the statements therein relating to the
Commission, in the light of the circumstances under which they were made, not misleading.
The Commission shall not be liable for any settlement of any such action effected without its
consent by any Indemnified Party, which consent shall not be unreasonably withheld, but if settled
with the consent of the Commission or if there be a final judgment for the plaintiff in any such action
against the Commission or any Indemnified Party, the Commission agrees to indemnify and hold
harmless such Indemnified Party to the extent provided herein.
In case any claim shall be made or action brought against an Indemnified Party for which
indemnity may be sought against the Commission, as provided above, the Underwriters shall
promptly notify the Commission in writing setting forth the particulars of such claim or action and
the Commission shall assume the defense thereof, including at its option the retaining of counsel
acceptable to the Underwriters and including the payment of all expenses. The Indemnified Party
shall not have the right to retain separate counsel unless (i) the Commission shall have specifically
authorized the retaining of such counsel or (ii) the parties to such suit include the Indemnified Party
and one or more legal defenses may be available to it which may not be available to the Commission,
in which case the Commission shall not be entitled to assume the defense of the suit but the
Underwriters shall bear the fees and expenses of such counsel.
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"
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 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 O f f i c i a l S t a t e m e n t .
7 . T h e U n d e r w r i t e r s s h a l l h a v e t h e r i g h t t o c a n c e l t h e i r o b l i g a t i o n h e r e u n d e r t o p u r c h a s e
t h e B o n d s ( a n d s u c h c a n c e l l a t i o n s h a l l n o t c o n s t i t u t e a d e f a u l t h e r e u n d e r b y t h e U n d e r w r i t e r s ) b y t h e
R e p r e s e n t a t i v e n o t i f y i n g y o u i n w r i t i n g o r b y t e l e g r a m o f i t s e l e c t i o n s o t o d o b e t w e e n t h e d a t e
h e r e o f a n d t h e C l o s i n g , i f a t a n y t i m e h e r e a f t e r a n d p r i o r t o t h e C l o s i n g :
( i ) a n y e v e n t o c c u r r i n g , o r i n f o r m a t i o n b e c o m i n g k n o w n t h a t , 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 , m a k e s u n t r u e a n y s t a t e m e n t o f a m a t e r i a l f a c t 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 o r r e s u l t s i n a n o m i s s i o n o f 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
m a d e t h e r e i n , i n t h e 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 ; o r
( i i ) a n a m e n d m e n t t o t h e C o n s t i t u t i o n 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
b y a n y l e g i s l a t i o n i n o r 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 b y t h e S t a t e o f C a l i f o r n i a ,
o r t h e a m e n d m e n t o f l e g i s l a t i o n p e n d i n g a s o f t h e d a t e o f t h i s P u r c h a s e A g r e e m e n t i n 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 r e c o m m e n d a t i o n t o C o n g r e s s o r e n d o r s e m e n t f o r p a s s a g e ( b y
p r e s s r e l e a s e , o t h e r f o r m o f n o t i c e o r o t h e r w i s e ) o f l e g i s l a t i o n b y t h e P r e s i d 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 T r e a s u r y D e p a r t 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 I n t e r n a l R e v e n u e S e r v i c e o r
t h e C h a i r m a n o r r a n k i n g m i n o r i t y m e m b e r o f t h e C o m m i t t e e o n F i n a n c e o f t h e U n i t e d S t a t e s S e n a t e
o r t h e C o m m i t t e e o n W a y s 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 r m a r k e t a b i l i t y 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 l 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
D O C S O C / 1 4 2 7 9 0 9 v 3 / 0 2 9 9 9 9 - 0 0 0 0
1 3
1 5 9
under, any provision of the federal securities laws, including the Securities Act of 1933, as amended
and as then in effect, or that the Indenture needs to be qualified under the Trust Indenture Act of
1939, as amended and as then in effect; or
(v) the imposition by the New York Stock Exchange or other national
securities exchange or any governmental authority or any material restrictions not now in force with
respect to the Bonds or obligations of the general character of the Bonds or securities generally or the
material increase of any such restrictions now in force, including those relating to the extension of
credit by or the charge to the net capital requirements of, the Underwriters, which, in the reasonable
opinion of the Representative, materially adversely affects the market price or marketability of the
Bonds; or
(vi) the declaration of a general banking moratorium by federal, New
York or California authorities or a major financial crisis or a material disruption in commercial
banking or securities settlement or clearances services shall have occurred, or the general suspension
of trading or minimum or maximum prices for trading shall have been fixed and be in force or
maximum ranges or prices for securities shall have been required and be in force on the New York
Stock Exchange on any national securities exchange by a determination by that exchange or by order
of the Securities and Exchange Commission or any other governmental agency having jurisdiction,
which, in the reasonable opinion of the Representative, materially adversely affects the market price
or marketability of the Bonds; or
(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 or marketability 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, placed on credit watch, assigned a negative outlook or announced to be under review by a
rating agency, which, in the Representative's reasonable opinion, materially adversely affects the
market price or marketability 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; or
(xi) a material adverse change has occurred or becomes known in the
operations or finances of the Commission.
8. The Underwriters shall be under no obligation to pay and the Commission shall pay
or cause to be paid from the proceeds of the Bonds or other funds available to it the expenses incident
to the performance of the obligations of the Commission hereunder, including but not limited to
(a) the cost of printing or engraving, and mailing or delivering the definitive Bonds and the Official
Statement in reasonable quantities and all other documents or the cost of recording and filing such
documents (other than as set forth in the next succeeding paragraph) prepared in connection with the
DOCSOC/ 1427909v3/029999-0000
14
•
160
"
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 .
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 ; ( 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 ; ( e ) C U S I P n u m b e r c o s t s ; a n d ( f ) a n y f e e s a s s e s s e d u p o n t h e U n d e r w r i t e r s
w i t h r e s p e c t t o t h e S e r i e s B o n d s b y 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 o r 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 . A n y m e a l s o r t r a v e l i n g e x p e n s e s o f t h e I s s u e r p a i d b y t h e
U n d e r w r i t e r s w e r e i n c l u d e d a s r e i m b u r s e m e n t o f e x p e n s e s a s p a r t o f t h e U n d e r w r i t e r s ' d i s c o u n t .
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
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 s o l e l y b y r e a s o n o f t h e e x e c u t i o n o f t h i s P u r c h a s e A g r e e m e n t o r s o l e l y b y
r e a s o n o f t h e b r e a c h o r a t t e m p t e d a l l e g e d b r e a c h h e r e o f b y t h e C o m m i s s i o n .
1 0 . A n y n o t i c e t o b e g i v e n t o t h e C o m m i s s i o n 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 m a y b e
g i v e n b y d e l i v e r i n g t h e s a m e t o t h e o f f i c e t h e r e o f c / 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 ,
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 n d a n y s u c h n o t i c e t o b e g i v e n t o t h e R e p r e s e n t a t i v e
o r t h e U n d e r w r i t e r s m a y b e g i v e n b y d e l i v e r i n g t h e s a m e t o B a r c l a y s C a p i t a l I n c . , 5 5 5 C a l i f o r n i a
S t r e e t , 3 0 t h F l o o r , S a n F r a n c i s c o , C a l i f o r n i a 9 4 1 0 4 .
1 1 . T h e C o m m i s s i o n h e r e b y a u t h o r i z e 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 i n f o r m a t i o n t h e r e i n
c o n t a i n e d t o b e u s e d b y t h e U n d e r w r i t e r 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 s a l e o f t h e B o n d s .
1 2 . 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 , a n d c o n s t r u 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 .
1 3 . 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 s e t f o r t h i n o r m a d e p u r s u a n t
t o 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 n o t b e d e e m e d t o h a v e b e e n d i s c h a r g e d , s a t i s f i e d o r o t h e r w i s e
r e n d e r e d v o i d b y r e a s o n o f t h e C l o s i n g o r t e r m i n a t i o n o f t h i s P u r c h a s e A g r e e m e n t a n d r e g a r d l e s s o f
a n y i n v e s t i g a t i o n s o r s t a t e m e n t s a s t o t h e r e s u l t s t h e r e o f m a d e b y o r 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
a n d r e g a r d l e s s o f d e l i v e r y o f a n d p a y m e n t f o r t h e B o n d s .
1 4 . T h i s P u r c h a s e A g r e e m e n t , w h e n a c c e p t e d b y t h e C o m m i s s i o n , s h a l l c o n s t i t u t e t h e
e n t i r e a g r e e m e n t 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 U n d e r w r i t e r s a n d i s m a d e s o l e l y f o r 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 a n d t h e U n d e r w r i t e r s ( i n c l u d i n g t h e s u c c e s s o r s o f t h e U n d e r w r i t e r s ) . N o o t h e r
p e r s o n s h a l l a c q u i r e o r h a v e a n y r i g h t h e r e u n d e r b y v i r t u e h e r e o f , e x c e p t a s p r o v i d e d h e r e i n .
1 5 . T h i s P u r c h a s e A g r e e m e n t i s m a d e s o l e l y f o r 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 a n d t h e
U n d e r w r i t e r s ( i n c l u d i n g t h e s u c c e s s o r s t h e r e o f ) , a n d n o o t h e r p e r s o n , p a r t n e r s h i p o r a s s o c i a t i o n s h a l l
a c q u i r e o r h a v e a n y r i g h t h e r e u n d e r o r b y v i r t u e h e r e o f . A l l r e p r e s e n t a t i o n s a n d a g r e e m e n t s b y t h e
C o m m i s s i o n 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 r e m a i n o p e r a t i v e a n d i n f u l l f o r c e a n d e f f e c t 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 , r e g a r d l e s s o f a n y i n v e s t i g a t i o n s m a d e b y o r 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
a n d s h a l l s u r v i v e t h e i s s u a n c e o f a n d p a y m e n t o f t h e B o n d s .
D O C S O C / 1 4 2 7 9 0 9 v 3 / 0 2 9 9 9 9 - D O D O
1 5
1 6 1
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.
20. In case any one or more of the provisions, contained herein shall for any reason to be
held invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability
shall not effect any other provisions hereof.
21. The validity, interpretation, and performance of this Purchase Agreement shall be
govemed by the laws of the State of California.
Very truly yours,
BARCLAYS CAPITAL INC., on behalf of itself and
as Representative of the Underwriters
By:
John McCray-Goldsmith
Authorized Representative
The foregoing is hereby agreed to and
accepted as of the date first above written:
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
By:
Authorized Representative
DOC SOC/ 1427909v 3/029999-0000
16
162
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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
D A T E :
A u g u s t 2 3 , 2 0 1 0
T O :
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
F R O M :
S h i r l e y M e d i n a , P r o g r a m m i n g a n d P l a n n i n g M a n a g e r
T H R O U G H :
C a t h y B e c h t e l , P r o j e c t D e v e l o p m e n t D i r e c t o r
S U B J E C T :
F u n d i n g f o r I n t e r s t a t e 2 1 5 F r o m M u r r i e t a H o t S p r i n g s R o a d t o
S c o t t R o a d W i d e n i n g P r o j e c t
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 t t e e t o :
1 ) A p p r o v e t h e u s e o f $ 9 m i l l i o n i n M e a s u r e A W e s t e r n C o u n t y C o m m u n i t y a n d
E n v i r o n m e n t a l T r a n s p o r t a t i o n A c c e p t a b i l i t y P r o g r a m ( C E T A P ) f u n d s f o r t h e
1 - 2 1 5 w i d e n i n g p r o j e c t u n t i l r e i m b u r s e m e n t o f s t a t e f u n d s a r e a u t h o r i z e d a n d
a l l o c a t e d b y 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 ) ;
2 ) A p p r o v e a l e t t e r o f n o p r e j u d i c e ( L O N P ) f o r 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 ) f u n d s ;
3 ) A p p r o v e a S B 1 8 4 r e q u e s t f o r 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 ) f u n d s ; a n d
4 ) F o r w a r d t o t h e C o m m i s s i o n f o r f i n a l a c t 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 1 - 2 1 5 w i d e n i n g p r o j e c t f r o m M u r r i e t a H o t S p r i n g s R o a d t o S c o t t R o a d w a s
a p p r o v e d f o r P r o p o s i t i o n 1 B C M I A f u n d s i n 2 0 0 7 . T h e C M I A f u n d s w e r e a p p r o v e d
f o r t h e c o n s t r u c t i o n p h a s e i n t h e a m o u n t o f $ 3 8 . 5 7 m i l l i o n . A d d i t i o n a l l y ,
$ 1 6 . 5 3 m i l l i o n o f S T I P R e g i o n a l I m p r o v e m e n t P r o g r a m ( R I P ) f u n d s h a v e b e e n
p r o g r a m m e d 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 1 - 2 1 5 C M I A p r o j e c t i s r e a d y t o l i s t
a n d t h e a l l o c a t i o n r e q u e s t f o r b o t h C M I A a n d S T I P - R I P f u n d i n g w a s s u b m i t t e d f o r
a l l o c a t i o n a t t h e A u g u s t 2 0 1 0 C T C m e e t i n g . H o w e v e r , d u e t o t h e s t a t e b u d g e t
i m p a s s e , t h e C T C d o e s n o t h a v e t h e a u t h o r i t y t o a l l o c a t e S T I P f u n d s , a n d
P r o p o s i t i o n 1 B b o n d s c a n n o t b e i s s u e d w i t h o u t a n a d o p t e d s t a t e b u d g e t .
C M I A b a s e l i n e a g r e e m e n t s w e r e e x e c u t e d 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 T C .
T h e s e a g r e e m e n t s i d e n t i f y p r o j e c t s c h e d u l e s a n d m i l e s t o n e s a n d a r e m o n i t o r e d
q u a r t e r l y b y C T C s t a f f t o e n s u r e t h a t t h e p r o j e c t s m e e t t h e s p e c i f i e d m i l e s t o n e s
a n d d e l i v e r y d a t e s . G i v e n t h a t t h e C T C c o u l d n o t a l l o c a t e t h e C M I A a n d S T I P - R I P
f u n d s f o r t h e 1 - 2 1 5 w i d e n i n g p r o j e c t a t i t s A u g u s t m e e t i n g , t h e p r o j e c t w i l l n o t
m e e t i t s D e c e m b e r 2 0 1 0 c o n s t r u c t i o n a w a r d m i l e s t o n e u n l e s s a l t e r n a t i v e f u n d i n g
A g e n d a I t e m 9
1 6 6
can be identified. Staff has explored reimbursement arrangements that would
maintain the project's award milestone and provide the much needed jobs and
mobility improvements sooner.
Staff recommends that the Commission approve using Measure A CETAP funds to
initiate the project, and approve reimbursement mechanisms allowed under AB 672
and SB 184 for the CMIA and STIP funds, respectively.
• AB 672 — LONP allows the project sponsor to expend its own local funds
and be eligible for reimbursement when the CMIA funds are available. Staff
anticipates that a bond sale that includes CMIA projects would be issued
within the fiscal year. The LONP will be submitted for approval at the
September 2010 CTC meeting.
• SB 184 — STIP-RIP funds can be reimbursed under SB 184, which allows the
project sponsor to expend its own funds prior to the CTC's approval of the
STIP allocation. Although there is no guarantee on the timing of the
reimbursement, staff has been informed that it will be tied to future
Proposition 1 B bond sales. CTC approval of the SB 184 letter request will
coincide with the AB 672 LONP approval.
Another course of action the Commission may consider is to wait until the state
budget is adopted and the sale of the Proposition 1 B bond that includes CMIA
projects. However, this would delay the project schedule by six to twelve months,
or longer. There is sufficient Measure A CETAP funding that can sustain the
construction contract until reimbursements are received. Staff is confident that
this temporary use of CETAP funds will not impact future CETAP projects.
As previously noted, the total programmed amount is $55.1 million ($38.57 million
of CMIA and $16.53 million of STIP). Recently the estimate was revised to reflect
market conditions and the current construction estimate is now $39.2 million.
Agenda Item 9
167
"
1 - 2 1 5 , A d d M i x e d F l o w l a n e s ( 1 - 1 5 / M u r r i e t a H o t S p r i n g s t o S c o t t R o a d )
C o n s t r u c t i o n E x p e n d i t u r e P l a n
$ 1 0 0 0 ' s
F U N D S
F Y 2 0 1 0 / 1 1
F Y 2 0 1 1 / 1 2
F Y 2 0 1 2 / 1 3
F Y 2 0 1 3 / 1 4
T O T A L
C M I A / L O N P
$ 6 , 3 0 0
$ 9 , 8 0 0
$ 9 , 8 0 0
$ 1 , 5 4 0
$ 2 7 , 4 4 0
S T I P - R I P
$ 2 , 7 0 0
$ 4 , 2 0 0
$ 4 , 2 0 0
$ 6 6 0
$ 1 1 , 7 6 0
T O T A L
$ 9 , 0 0 0
$ 1 4 , 0 0 0
$ 1 4 , 0 0 0
$ 2 , 2 0 0
$ 3 9 , 2 0 0
A n y s a v i n g s r e s u l t i n g f r o m t h e a w a r d o f t h e c o n s t r u c t i o n c o n t r a c t w i l l b e r e t u r n e d
t o t h e o r i g i n a t i n g p r o g r a m . F o r e x a m p l e , t h e S T I P s a v i n g s w i l l b e r e t u r n e d t o
R i v e r s i d e C o u n t y ' s s h a r e , a n d C M I A s a v i n g s w i l l r e t u r n t o t h e C M I A p r o g r a m .
C M I A s a v i n g s c a n b e p r o p o s e d f o r r e p r o g r a m m i n g a n d s t a f f w i l l w o r k w i t h t h e
S o u t h e r n C a l i f o r n i a C o n s e n s u s G r o u p o n t h e a p p r o p r i a t e u s e f o r r e p r o g r a m m i n g
s a v i n g s f r o m t h e 1 - 2 1 5 w i d e n i n g p r o j e c t .
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 o
Y e a r :
F Y 2 0 1 0 / 1 1
A m o u n t :
$ 9 , 0 0 0 , 0 0 0
S o u r c e o f F u n d s :
C E T A P M e a s u r e A
B u d g e t A d j u s t m e n t :
Y e s
G L / P r o j e c t A c c o u n t i n g N o . :
0 0 3 0 2 2 9 7 0 0 1 0 0 0 0 0 0 0 0 0 2 6 1 3 1 9 7 0 0 1
0 0 3 0 2 2 5 9 0 0 1 0 0 0 0 0 0 0 0 0 2 6 2 3 1 5 9 0 0 1
F i s c a l P r o c e d u r e s A p p r o v e d :
t 4 4
D a t e :
0 8 / 1 0 / 1 0
A g e n d a I t e m 9
1 6 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
D A T E :
A u g u s t 2 3 , 2 0 1 0
T O :
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
F R O M :
M a r t h a D u r b i n , S t a f f A n a l y s t
F i n a C l e m e n t e , T r a n s i t M a n a g e r
T H R O U G H :
R o b e r t Y a t e s , M u l t i m o d a l S e r v i c e s D i r e c t o r
S U B J E C T :
P r o p o s i t i o n 1 B F i s c a l Y e a r 2 0 0 9 / 1 0 C a l i f o r n i a T r a n s i t S e c u r i t y
G r a n t P r o g r a m - C a l i f o r n i a T r a n s i t A s s i s t a n c e F u n d a n d S u p p o r t i n g
R e s o l u t i o n 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 t t e e t o :
1 ) A p p r o v e d i s c r e t i o n a r y a l l o c a t i o n s f r o m t h e C a l i f o r n i a T r a n s i t S e c u r i t y G r a n t
P r o g r a m - C a l i f o r n i a T r a n s i t A s s i s t a n c e F u n d ( C T S G P - C T A F ) p o p u l a t i o n
f u n d s i n t h e a m o u n t o f $ 1 , 5 5 3 , 8 2 1 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 i t
o p e r a t o r s ;
2 ) A d o p t R e s o l u t i o n N o . 1 0 - 0 2 8 , " 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 p p r o v i n g t h e A l l o c a t i o n o f F Y 2 0 0 9 / 1 0
P r o p o s i t i o n 1 B - 6 2 6 1 - 0 0 0 2 C a l i f o r n i a T r a n s i t S e c u r i t y G r a n t P r o g r a m -
C a l i f o r n i a T r a n s i t A s s i s t a n c e F u n d ( C T S G P - C T A F ) - P o p u l a t i o n F u n d s " ;
3 ) A d o p t R e s o l u t i o n N o . 1 0 - 0 2 9 , " 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 p p o i n t i n g I n d i v i d u a l s t o A c t o n B e h a l f o f t h e
C o m m i s s i o n f o r t h e P u r p o s e o f A p p l y i n g a n d / o r A c c e p t i n g G r a n t s A w a r d e d
t o t h e C o m m i s s i o n ' s R a i l P r o g r a m ' ; a n d
4 ) F o r w a r d t o t h e C o m m i s s i o n f o r f i n a l a c t 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 H i g h w a y S a f e t y , T r a f f i c R e d u c t i o n , A i r Q u a l i t y , a n d P o r t S e c u r i t y B o n d A c t o f
2 0 0 6 , a p p r o v e d b y t h e v o t e r s a s P r o p o s i t i o n 1 B i n N o v e m b e r 2 0 0 6 , i n c l u d e s a
p r o g r a m o f f u n d i n g i n t h e a m o u n t o f $ 1 b i l l i o n t o b e d e p o s i t e d i n t h e T r a n s i t
S y s t e m S a f e t y , S e c u r i t y , a n d D i s a s t e r R e s p o n s e A c c o u n t ( T S S S D R A ) . T h e
F Y 2 0 0 9 / 1 0 a p p r o p r i a t i o n i n c l u d e s $ 6 0 m i l l i o n s t a t e w i d e ( s u b j e c t t o a v a i l a b l e b o n d
f u n d i n g ) f o r t h e C T S G P - C T A F , w h i c h i s a d m i n i s t e r e d b y t h e C a l i f o r n i a E m e r g e n c y
M a n a g e m e n t A g e n c y ( C a l E M A ) .
A g e n d a I t e m 1 0
1 6 9
The Commission expects to receive a total of $1,785,042 in CTSGP-CTAF funds,
which consists of $1,553,821 in discretionary funding (population based) per
Public Utilities Code (PUC) Section 99313 and $231,221 in non -discretionary
funding (revenue based) directly allocated by the State Controller per PUC Section,
99314. The Commission is responsible for calculating discretionary eligible
amounts for each transit operator under its authority. The operator funding
amounts are identified in Attachment 3.
These funds are designated to be used for transit capital projects that provide
increased protection against a security or safety threat including, but not limited to
the following:
• Construction or renovation projects that enhance security of public transit
stations or other transit facilities;
• Explosive devise mitigation and remediation equipment;
• Chemical, biological, radiological, and nuclear explosives search, rescue, or
response equipment;
• Interoperable communications equipment;
• Physical security enhancement equipment;
• Installation of fencing, barriers, etc. to improve security at transit stations or
other transit facilities; and
• Other security and safety related projects approved by Cal EMA.
Funds will be allocated directly to the transit operators upon Commission approval
and will be disbursed as available by the State Controller directly to the operators.
These funds are to be expended by the operators within three years after receipt of
funds.
Cal EMA requires a resolution from the Commission regarding discretionary funds
per PUC Section 99313 and a resolution appointing individuals to act on behalf of
the Commission's Commuter Rail Program. These resolutions are needed in order
to successfully complete the grant submittal process. Resolution No. 10-028 is to
approve and authorize PUC Section 99313 funds to the Riverside County transit
operators. Resolution No. 10-029 is to appoint the Rail Manager to act on behalf
of the Commission for the purpose of applying for and/or accepting grants awarded
to the Commission's Commuter Rail Program. Attachment 3 is a summary of all
CTSGP-CTAF funding allocations by operator in Riverside County.
Financial Impact
Since the funds are directly disbursed to the transit operators by the State
Controller, the only financial impact to the Commission is the allocation of funds to
its Commuter Rail Program, estimated at $347,496, which is comprised of
$263,476 of population funds per PUC Section 99313 and $84,020 of operator
Agenda Item 10
•
•
170
"
f u n d s p e r P U C S e c t i o n 9 9 3 1 4 . T h e s e f u n d s h a v e b e e n i n c l u d e d i n t h e F Y 2 0 1 0 / 1 1
C o m m i s s i o n b u d g e t .
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 :
Y e s
Y e a r :
F Y 2 0 1 0 / 1 1
A m o u n t :
$ 3 4 7 , 4 9 6
S o u r c e o f F u n d s :
P r o p 1 B C T S G P - C T A F F u n d s
B u d g e t A d j u s t m e n t :
N o
G L A N o . :
0 0 4 0 1 2 4 1 5 4 1 5 0 7 0 0 0 0 2 6 5 3 3 4 1 5 0 1
F i s c a l P r o c e d u r e s A p p r o v e d :
\ 4 4 , 4 4 0
D a t e :
0 8 / 1 1 / 1 0
A t t a c h m e n t s :
1 ) R e s o l u t i o n N o . 1 0 - 0 2 8 o f A p p r o v a l a n d A u t h o r i z a t i o n f o r P U C S e c t i o n
9 9 3 1 3 F u n d s
2 ) R e s o l u t i o n N o 1 0 - 0 2 9 o f A p p r o v a l a n d A u t h o r i z a t i o n f o r C o m m u t e r R a i l
P r o g r a m A p p o i n t e e s
3 ) R e c o m m e n d e d P r o p o s i t i o n 1 B - S e c u r i t y F u n d A l l o c a t i o n s B y O p e r a t o r
A g e n d a I t e m 1 0
1 7 1
"
A T T A C H M E N T 1
R E S O L U T I O N N O . 1 0 - 0 2 8
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 P P R O V I N G T H E A L L O C A T I O N O F F Y 2 0 0 9 / 1 0 P R O P O S I T I O N 1 B - 6 2 6 1 - 0 0 0 2
C A L I F O R N I A T R A N S I T S E C U R I T Y G R A N T P R O G R A M -
C A L I F O R N I A T R A N S I T A S S I S T A N C E F U N D S C C T S G P - C T A F )
P O P U L A T I O N F U N D S
W H E R E A 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 ( R C T C ) i s t h e
d e s i g n a t e d r e g i o n a l t r a n s p o r t a t i o n p l a n n i n g a g e n c y f o r R i v e r s i d e C o u n t y , a n d i s
t h e r e f o r e , e l i g i b l e t o r e c e i v e a n d a l l o c a t e f u n d s u n d e r G o v e r n m e n t C o d e
8 8 7 9 . 5 8 ( a ) ( 2 ) ( P u b l i c U t i l i t i e s C o d e S e c t i o n 9 9 3 1 3 ) b a s e d u p o n p o p u l a t i o n ; a n d
W H E R E A S , R C T C h a s b e e n i d e n t i f i e d a s t h e r e c i p i e n t o f P r o p o s i t i o n 1 B
C T S G P - C T A F P o p u l a t i o n F u n d s i n t h e a m o u n t o f $ 1 , 5 5 3 , 8 2 1 ; a n d
W H E R E A S , R C T C a p p r o v e s t h e a l l o c a t i o n o f t h e P o p u l a t i o n F u n d s t o e i g h t
l o c a l t r a n s i t a g e n c i e s f o r t h e p u r p o s e o f e n h a n c i n g s a f e t y a n d s e c u r i t y o n p u b l i c
t r a n s i t s y s t e m s t h r o u g h o u t R i v e r s i d e C o u n t y ;
N O W , T H E R E F O R E I T B E R E S O L V E D , t h a t 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 e r e b y f i n d s t h a t :
R C T C a p p r o v e s t h e a l l o c a t i o n o f $ 1 , 5 5 3 , 8 2 1 i n P r o p o s i t i o n 1 B C T S G P - C T A F
P o p u l a t i o n F u n d s t o t h e f o l l o w i n g e n t i t i e s i n t h e f o l l o w i n g a m o u n t s :
W e s t e r n R i v e r s i d e C o u n t y -
" C i t y o f B a n n i n g $ 1 7 , 4 6 8
" C i t y o f B e a u m o n t 1 7 , 4 6 8
" C i t y o f C o r o n a 3 5 , 8 7 1
" C i t y o f R i v e r s i d e 4 4 , 7 4 5
" R i v e r s i d e T r a n s i t A g e n c y 8 1 8 , 5 8 9
" R C T C C o m m u t e r R a i l 2 6 3 , 4 7 6
C o a c h e l l a V a l l e y -
" S u n L i n e T r a n s i t A g e n c y 3 3 4 , 4 0 8
P a l o V e r d e V a l l e y -
" P a l o V e r d e V a l l e y T r a n s i t A g e n c y 2 1 , 7 9 6
T O T A L : $ 1 , 5 5 3 , 8 2 1
1 7 2
APPROVED AND ADOPTED this 8' day of September, 2010.
Bob Buster, Chair
Riverside County Transportation Commission
ATTEST:
Jennifer Harmon, Clerk of the Board
Riverside County Transportation Commission
•
173
ATTACHMENT 2
RESOLUTION NO. 10-029
RESOLUTION OF THE
RIVERSIDE COUNTY TRANSPORTATION COMMISSION APPOINTING
INDIVIDUALS TO ACT ON BEHALF OF THE COMMISSION FOR THE
PURPOSE OF APPLYING AND/OR ACCEPTING GRANTS AWARDED TO THE
COMMISSION'S RAIL PROGRAM
WHEREAS, the California Emergency Management Agency requires a
resolution regarding appointing individuals to act on behalf of the Riverside
County Transportation Commission's Commuter Rail Program related to the
FY 2009/10 Proposition 1B-6261-0002 California Transit Assistance
Security Grant Program Funds — Commuter Rail Program.
NOW, THEREFORE IT BE RESOLVED, that the Riverside County
Transportation Commission hereby finds that the Rail Manager is hereby
authorized to execute for and on behalf of the Riverside County
Transportation Commission, a public entity established under the laws of the
State of California, any actions necessary for the purpose of obtaining FY
2009/10 Proposition 1 B California Transit Security Grant Program -California
Transit Assistance Fund (CTSGP-CTAF) Grant Funds provided by the
California Emergency Management Agency.
APPROVED AND ADOPTED this 8th day of September, 2010.
Bob Buster, Chair
Riverside County Transportation Commission
ATTEST:
Jennifer Harmon, Clerk of the Board
Riverside County Transportation Commission
174
" " "
A T T A C H M E N T
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O p e r a t o r p l a n s t o r e q u e s t r e m a i n i n g f u n d s a t a l a t e r d a t e
P r o j e c t s :
B a n n i n g R a d i o s a n d S e c u r i t y C a m e r a s f o r B u s e s
B e a u m o n t B u s S h e l t e r U p g r a d e s
R T A T r a n s i t C e n t e r S e c u r i t y S y s t e m s / L i g h t i n g S y s t e m s
R a i l S t a t i o n S u r v e i l l a n c e a n d S e c u r i t y U p g r a d e s
S u n L i n e S a f e t y a n d S e c u r i t y E n h a n c e m e n t s
P V V T A S e c u r i t y C a m e r a s
1 7 5
"
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 :
A u g u s t 2 3 , 2 0 1 0
T O :
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
F R O M :
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 :
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
S U B J E C T :
A g r e e m e n t w i t h S m i t h , W a t t s & C o m p a n y ,
L e g i s l a t i v e A d v o c a c y S e r v i c e s
L L C
f o r
S t 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 t t e e t o :
1 ) A w a r d A g r e e m e n t N o . 1 0 - 1 4 - 1 0 5 - 0 0 t o S m i t h , W a t t s & C o m p a n y , L L C f o r
t h e p r o v i s i o n o f s t a t e l e g i s l a t i v e a d v o c a c y s e r v i c e s f o r a t w o - y e a r t e r m , a n d
t w o , t w o - y e a r o p t i o n s t o e x t e n d t h e a g r e e m e n t i n a n a m o u n t n o t t o e x c e e d
$ 4 0 8 , 0 0 0 ; .
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 , i n c l u d i n g o p t i o n y e a r s , o n b e h a l f o f t h e C o m m i s s i o n ; a n d
3 ) F o r w a r d t o t h e C o m m i s s i o n f o r f i n a l a c t 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 C o m m i s s i o n h a s r e q u i r e d a n i n c r e a s i n g l y r o b u s t g o v e r n m e n t r e l a t i o n s p r o g r a m
i n S a c r a m e n t o o v e r t h e l a s t s e v e r a l y e a r s . T h e C o m m i s s i o n h a s s o u g h t a u t h o r i z i n g
l e g i s l a t i o n f o r t h e S t a t e R o u t e 9 1 a n d I n t e r s t a t e 1 5 p r o j e c t s a n d d e s i g n - b u i l d
a u t h o r i t y . T h e C o m m i s s i o n h a s a l s o n e e d e d t o f e n d o f f a t t e m p t s b y t h e L e g i s l a t u r e
t o r a i d t r a n s p o r t a t i o n f u n d i n g t o b a l a n c e t h e s t a t e ' s b u d g e t a n d t o k e e p s t a t e -
f u n d e d p r o j e c t s m o v i n g f o r w a r d d e s p i t e t h e s t a t e ' s f i s c a l c o n d i t i o n .
I m p l e m e n t a t i o n o f t h e P r o p o s i t i o n 1 B b o n d p r o g r a m a n d e n s u r i n g t h a t R i v e r s i d e
C o u n t y r e c e i v e s i t s a d e q u a t e s h a r e h a s r e q u i r e d a s t r o n g p r e s e n c e i n t h e C a p i t o l .
A l l o f t h e a b o v e s p e a k s t o t h e n e e d t o h a v e d a i l y r e p r e s e n t a t i o n i n S a c r a m e n t o b y
a t r a n s p o r t a t i o n p o l i c y a n d p o l i t i c a l e x p e r t w o r k 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 .
T h e C o m m i s s i o n ' s c u r r e n t c o n t r a c t f o r s t a t e l e g i s l a t i v e a d v o c a c y s e r v i c e s w i t h
S m i t h , W a t t s , & C o m p a n y , L L C e x p i r e s S e p t e m b e r 3 0 , 2 0 1 0 . W h i l e s t a f f h a s b e e n
e x c e e d i n g l y p l e a s e d w i t h t h e p e r f o r m a n c e o f S m i t h , W a t t s & C o m p a n y , L L C t h e
C o m m i s s i o n r e c e n t l y i s s u e d a c o m p e t i t i v e r e q u e s t f o r p r o p o s a l ( R F P ) i n o r d e r t o
e n s u r e t h a t t h e C o m m i s s i o n c o n t i n u e s t o r e c e i v e p r e m i u m r e p r e s e n t a t i o n a t a v a l u e
t h a t r e f l e c t s c u r r e n t e c o n o m i c c o n d i t i o n s . T h e R F P s o u g h t f i r m s w i t h p o l i t i c a l a s
w e l l a s t e c h n i c a l e x p e r t i s e i n t h e t r a n s p o r t a t i o n f i e l d . T h e C o m m i s s i o n ' s a d v o c a c y
A g e n d a I t e m 1 1
1 7 6
program requires a proactive and savvy approach that is built on a strong
knowledge base of the mechanics of state transportation funding, the legislative
process, the California Transportation Commission (CTC), and other state offices.
The Commission sought firms that could demonstrate a mastery of infrastructure
issues. Relationships to key decision -makers on both sides of the aisle in
Sacramento that are relevant to the Commission's agenda were also a priority.
Procurement Process
The Commission sought a competitive solution to meet the foregoing requirement
for state legislative advocacy services. Staff determined that the issuance of a
negotiated solicitation, or RFP, would be in the Commission's best interest as it
affords staff the opportunity to evaluate and discuss price and other technical
factors with proposers. Non -price factors used to evaluate the proposers under
this RFP included elements such as experience, the relative qualifications of the
firms, references, and the firms' relative ability to provide the services set forth
under the terms of the RFP. Price comprised 15% of the maximum possible points
under the evaluation criteria.
Staff released RFP No. 10-14-105-00 on May 20, 2010 to secure services from a
qualified firm to represent the Commission in matters of state government. The
item was advertised in a local newspaper of general circulation, made available for
download on the Commission website, and forwarded directly via e-mail to
approximately 25 legislative advocacy firms.
Commission staff responded to all questions submitted by potential proposers prior
to the June 8 deadline date. Two firms submitted responsive and responsible
proposals prior to the June 17 proposal deadline date. Utilizing the evaluation
criteria set forth in the RFP, the firms' proposals were evaluated and scored by an
evaluation committee comprised of Commission staff and a representative from the
Orange County Transportation Authority (OCTA). Smith, Watts & Company, LLC
earned the highest total evaluation score. The respective evaluation ranking,
inclusive of pricing, and separate price rankings were as follows:
Firm
Overall Rank
Price Rank
Smith, Watts & Company, LLC
151
1s`
Ecoconsult
2nd
2'
Smith, Watts & Company, LLC earned the highest total evaluation score among the
proposers and also offered the most advantageous pricing terms. The technical,
non -price factors that earned Smith, Watts & Company, LLC the high score were
related to its reference, experience, qualifications, and technical personnel. Pricing
was evaluated based upon the firms' fixed fees.
Agenda Item 11
•
•
177
"
A s a r e s u l t , s t a f f r e c o m m e n d s t h e a w a r d o f A g r e e m e n t N o . 1 0 - 1 4 - 1 0 5 - 0 0 t o
S m i t h , W a t t s & C o m p a n y , L L C f o r t h e p r o v i s i o n o f s t a t e l e g i s l a t i v e a d v o c a c y
s e r v i c e s f o r a t w o - y e a r t e r m , a n d t w o , t w o - y e a r o p t i o n s t o e x t e n d t h e a g r e e m e n t ,
f o r a t o t a l p e r i o d o f u p t o s i x y e a r s , i n a n a m o u n t n o t t o e x c e e d $ 4 0 8 , O 0 O . T h e
p a r t i e s w i l l u t i l i z e t h e C o m m i s s i o n ' s s t a n d a r d f o r m p r o f e s s i o n a l s e r v i c e s a g r e e m e n t .
S m i t h , W a t t s & C o m p a n y ' s , L L C r a t e s a r e c o n s i d e r e d f a i r a n d r e a s o n a b l e b a s e d
u p o n a d e q u a t e p r i c e c o m p e t i t i o n a n d h i s t o r i c a l c o s t s i n c u r r e d b y t h e C o m m i s s i o n
f o r c o m p a r a b l e s e r v i c e s . S m i t h , W a t t s & C o m p a n y , L L C h a s p r o v i d e d s e r v i c e s f o r
t h e C o m m i s s i o n a n d p e r f o r m e d s a t i s f a c t o r i l y . I n a d d i t i o n , t h e f i r m h a s s u c c e s s f u l l y
p r o v i d e d s i m i l a r p r o f e s s i o n a l s e r v i c e s f o r a v a r i e t y o f t r a n s p o r t a t i o n e n t i t i e s l o c a t e d
t h r o u g h o u t t h e S t a t e o f C a l i f o r n i a , i n c l u d i n g O C T A a n d P l a c e r C o u n t y
T r a n s p o r t a t i o n P l a n n i n g A g e n c y , a n d 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 .
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 :
Y e s
N / A
Y e a r :
F Y 2 0 1 0 / 1 1
F Y 2 0 1 1 / 1 2 +
A m o u n t :
5 4 5 , 0 0 0
$ 7 5 , 0 0 0
( b a s e p e r i o d o n l y )
S o u r c e o f F u n d s :
M e a s u r e A
B u d g e t A d j u s t m e n t :
N o
G L / P r o j e c t A c c o u n t i n g N o . :
0 0 1 0 0 1 6 5 5 0 6 0 0 0 0 0 0 0 0 2 1 0 1 1 4 6 5 5 2 0
F i s c a l P r o c e d u r e s A p p r o v e d :
\ 4 4 , 4 4 0 , 1 4 / ,
D a t e :
0 8 / 1 2 / 1 0
A t t a c h m e n t : S m i t h , W a t t s & C o m p a n y , L L C S t a t e m e n t o f W o r k
A g e n d a I t e m 1 1
1 7 8
"
S T A T E M E N T O F W O R K
A G R E E M E N T N O . 1 0 - 4 5 - 1 0 5 - 0 0
S T A T E L E G I S L A T I V E A D V O C A C Y S E R V I C E S
1 . 0 G E N E R A L I N F O R M A T I O N
1 . 1 I n t r o d u c t i o n
1 . 1 . 1 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 O T C ) i s a c o u n t y
t r a n s p o r t a t i o n p l a n n i n g a g e n c y g o v e r n e d b y t h e r e p r e s e n t a t i v e s o f t h e t w e n t y s i x
c i t i e s a n d t h e f i v e m e m b e r s o f t h e B o a r d o f S u p e r v i s o r s w i t h i n R i v e r s i d e C o u n t y .
1 . 1 . 2 T h e C o m m i s s i o n p r o v i d e s s h o r t a n d l o n g - t e r m p l a n n i n g s e r v i c e s r e l a t i n g t o
t r a n s p o r t a t i o n , a i r q u a l i t y , c o n g e s t i o n m a n a g e m e n t , a n d f r e e w a y c a l l b o x e s . T h e
C o m m i s s i o n a l l o c a t e s L o c a l T r a n s p o r t a t i o n F u n d s a n d t h e S t a t e T r a n s i t A s s i s t a n c e
f u n d s p r o v i d e d f o r s u p p o r t o f p u b l i c t r a n s i t a n d l o c a l s t r e e t s .
1 . 1 . 3 T h e C o m m i s s i o n i s r e s p o n s i b l e f o r t h e a d m i n i s t r a t i o n o f R i v e r s i d e C o u n t y M e a s u r e
A , t h e v o t e r - a p p r o v e d h a l f c e n t t r a n s p o r t a t i o n t r a n s a c t i o n s ' a n d u s e t a x f o r f u n d i n g
m a j o r f r e e w a y c o n s t r u c t i o n , c o m m u t e r r a i l s e r v i c e s , l o c a l s t r e e t a n d r o a d
i m p r o v e m e n t s , s p e c i a l i z e d t r a n s i t s e r v i c e f o r t h e e l d e r l y a n d p e r s o n s w i t h
d i s a b i l i t i e s p o p u l a t i o n a n d t r a f f i c m a n a g e m e n t a n d e n v i r o n m e n t a l e n h a n c e m e n t
e f f o r t s . I n 2 0 0 2 , R i v e r s i d e C o u n t y v o t e r s a p p r o v e d a 3 0 - y e a r e x t e n s i o n o f M e a s u r e
A b y m o r e t h a n a t w o - t h i r d s m a r g i n .
1 . 1 G e n e r a l S c o p e o f S e r v i c e s
1 . 1 . 1 T h e C o n s u l t a n t s h a l l r e p r e s e n t t h e C o m m i s s i o n i n m a t t e r s o f s t a t e g o v e r n m e n t .
A c t i v i t i e s w i l l i n c l u d e , b u t n o t l i m i t e d t o , p r e s e n t i n g p o l i c y r e c o m m e n d a t i o n s t o
a g e n c i e s a n d e l e c t e d o f f i c i a l s ; m o n i t o r i n g l e g i s l a t i o n a n d p o l i c y a s i t p e r t a i n s t o
C o m m i s s i o n p r o g r a m s a n d a d m i n i s t r a t i o n ; s e c u r i n g p u b l i c s e c t o r f u n d i n g ; a n d
i n f l u e n c i n g l e g i s l a t i o n .
1 . 1 . 2 T h e C o n s u l t a n t ( s ) m u s t h a v e s o u n d k n o w l e d g e o f p u b l i c p o l i c y , c l e a r u n d e r s t a n d i n g
o f t h e l e g i s l a t i v e p r o c e s s , s o l i d p o l i t i c a l n e t w o r k s , k n o w l e d g e o f k e y a g e n c y
p r o g r a m s a n d s t a f f , f a m i l i a r i t y w i t h c u r r e n t s t a t e i s s u e s , e f f e c t i v e c o m m u n i c a t i o n
s k i l l s , a n d a s u c c e s s f u l t r a c k r e c o r d i n s e c u r i n g a p p r o p r i a t i o n s o n b e h a l f o f s i m i l a r
p u b l i c s e c t o r c l i e n t s . T h e y s h o u l d a l s o h a v e d e m o n s t r a t e d e x p e r i e n c e i n b i p a r t i s a n
r e l a t i o n s h i p s w i t h a n e t w o r k o f a c c e s s t o l e g i s l a t o r s , a d m i n i s t r a t i v e a n d r e l e v a n t
a g e n c y s t a f f , r e p r e s e n t a t i v e s i n t h e O f f i c e o f t h e G o v e r n o r , a n d c u r r e n t
g u b e r n a t o r i a l c a n d i d a t e s .
1 . 1 . 3 T h e s c o p e o f t h e c o n s u l t a n t ' s s e r v i c e s s h a l l c o n s i s t o f , b u t n o t b e l i m i t e d t o ,
e n s u r i n g t h a t t h e C o m m i s s i o n m a i n t a i n s a v i s i b l e p r e s e n c e i n S a c r a m e n t o . T h e
C o m m i s s i o n ' s p r i m a r y a d v o c a c y p r i o r i t i e s a r e t o p r o t e c t s t a t e t r a n s p o r t a t i o n f u n d i n g
f o r 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 a n d p r o m o t e p o l i c i e s t h a t e n a b l e t h e e f f i c i e n t
d e l i v e r y o f p r o j e c t s , r e s p e c t l o c a l c o n t r o l , a n d " r e w a r d s e l f - h e l p " c o u n t i e s . T h e
C o m m i s s i o n p l a c e s a h i g h e m p h a s i s o n h a v i n g a S a c r a m e n t o - b a s e d a d v o c a t e w h o
1 7 9
is knowledgeable of the technical and political aspects of transportation funding and
also has strategic relationships with key legislators from all political parties, the
Califomia Transportation Commission (CTC), and the Administration.
2.0 CONSULTANT'S RESPONSIBILITIES
2.1 The scope of services will include, but is not limited to, the following requirements:
• Regular communication and collaborative interaction with Riverside County
legislative delegation, their staffs, and members and staff of relevant committees
concerning the Commission's legislative interests;
• Remaining up-to-date with the Commission's legislative plafform, board actions,
and positions on bills, budget proposals, and items before the CTC;
• Coordination of overall advocacy strategy and tactics at the state level;
• Testifying on behalf of the Commission at legislative hearings, or preparing
testimony for Commissioners or staff;
• Scheduling meetings with key offices and individuals for Commissioners and staff;
• Timely, insighfful analysis and tracking of relevant legislation, budget proposals,
and actions by the CTC and Administration;
• Providing occasional verbal reports to the Commission as needed;
• Providing leadership and coordination on Commission -sponsored bills;
• Building alliances and coalitions with like-minded entities to advance the
Commission's legislative interests;
• Developing public relations and communications strategies to promote and support
the Commission's legislative interests;
• Developing an annual work plan identifying objectives, barriers, approach, strategy,
tactics, budgets, milestones and metrics;
• Developing and implementing appropriate State legislative agenda and strategy for
the Commission;
• Arranging for facilitated meetings with key policymakers, staff, and others in state
government; lead the preparation for those meetings and conduct those meetings,
as appropriate, with agency and/or departmental representatives in Sacramento
and elsewhere; provide assistance coordinating activities during Commission
representative visits to stakeholders,
180
"
" A r r a n g i n g f o r C o m m i s s i o n r e p r e s e n t a t i v e s t o p a r t i c i p a t e i n t h e l e g i s l a t i v e p r o c e s s
i n c l u d i n g a r r a n g i n g o r p r e p a r i n g f o r t e s t i m o n y , m e e t i n g s , a n d / o r w r i t t e n
c o m m u n i c a t i o n s w i t h l e g i s l a t o r s a n d a g e n c y b o a r d s a n d d i r e c t o r s ;
" M a i n t a i n i n g d i r e c t c o n t a c t w i t h t h e l e g i s l a t u r e , s t a t e d e p a r t m e n t s , a g e n c y s t a f f s ,
a n d b o a r d s a n d c o m m i s s i o n s ; -
" A d v i s i n g t h e C o m m i s s i o n o n e f f e c t i v e l o b b y i n g s t r a t e g i e s ;
" M o n i t o r i n g s t a t e l e g i s l a t i o n a n d r e g u l a t i o n s a f f e c t i n g t h e C o m m i s s i o n a n d k e e p i n g
t h e C o m m i s s i o n a n d s t a f f r e g u l a r l y i n f o r m e d o n t h e s e m a t t e r s ;
" R e v i e w i n g a n d a n a l y z i n g p r o p o s e d l e g i s l a t i o n a n d r e g u l a t i o n s t o d e t e r m i n e i f t h e y
m a y b e b e n e f i c i a l o r a d v e r s e t o C o m m i s s i o n a n d a d v i s e C o m m i s s i o n o f s u c h
l e g i s l a t i o n . W o r k w i t h C o m m i s s i o n t o d e t e r m i n e C o m m i s s i o n ' s p o s i t i o n a n d s e e k t o
c a r r y o u t t h e C o m m i s s i o n ' s p o s i t i o n ;
" A s s i s t i n g t h e C o m m i s s i o n w i t h i n t r o d u c t i o n a n d p a s s a g e o f l e g i s l a t i o n s p o n s o r e d
b y C o m m i s s i o n , a s n e e d e d , t o a d d r e s s a g e n c y f u n d i n g o r o p e r a t i o n a l m a t t e r s . T h i s
m a y i n c l u d e n e c e s s a r y a c t i o n s t o p r e p a r e d r a f t l e g i s l a t i o n , o b t a i n l e g i s l a t i v e
s p o n s o r s h i p o f b i l l s , s u p p o r t c o m m i t t e e a n a l y s i s , o b t a i n w i t n e s s e s , a n d l o b b y
a p p r o p r i a t e o f f i c i a l s a s n e c e s s a r y t o p a s s s u c h b i l l s ;
" M o n i t o r i n g k e y a g e n c i e s s u c h a s t h e 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 i f o r n i a A i r
R e s o u r c e s B o a r d a n d C T C ;
" C o o r d i n a t i n g w i t h o t h e r l o b b y i n g g r o u p s a n d i n d i v i d u a l s w i t h s i m i l a r l e g i s l a t i v e
n e e d s ; I d e n t i f y i n g p o t e n t i a l p a r t n e r s h i p s w i t h o t h e r p u b l i c e n t i t i e s o r o t h e r
o r g a n i z a t i o n s w i t h a n i n t e r e s t i n C o m m i s s i o n o r c o m m o n t r a n s p o r t a t i o n m a t t e r s ;
a n d
" W o r k i n g t o r e s t o r e , p r e s e r v e a n d e x p a n d s t a t e a n d r e g i o n a l t r a n s p o r t a t i o n c a p i t a l
a n d o p e r a t i n g f u n d s t h a t c o u l d b e u s e d t o s u p p o r t C o m m i s s i o n p r o j e c t s a n d
p r o g r a m s .
2 . 2 C o n s u l t a n t s h a l l c o m p l y w i t h a l l s t a t e l o b b y i n g d i s c l o s u r e r e q u i r e m e n t s a n d m a i n t a i n t h e
h i g h e s t e t h i c a l s t a n d a r d s b o t h , p u b l i c l y a n d p r i v a t e l y , i n c l u d i n g t h e a v o i d a n c e o f c o n f l i c t s
o f i n t e r e s t .
2 . 3 C o n s u l t a n t s h a l l p r o v i d e o t h e r s e r v i c e s w i t h i n t h e i n d i v i d u a l ' s a n d / o r f i r m ' s a b i l i t y a s
r e q u e s t e d .
2 . 4 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 t o c o m p e t i t i v e l y b i d a n y o r a l l p o r t i o n s o f w o r k
a d d r e s s e d i n t h i s a g r e e m e n t .
3 . 0 R E C O R D S A N D A U D I T
C o n t r a c t o r ( s ) s h a l l m a i n t a i n r e c o r d s a n d b o o k s o f a c c o u n t s h o w i n g a l l c o s t s a n d e x p e n s e s
i n c u r r e d b y t h e c o n t r a c t o r f o r t h e c o n t r a c t . T h e C o m m i s s i o n s h a l l h a v e t h e r i g h t , u p o n
r e a s o n a b l e n o t i c e , t o a u d i t t h e b o o k s , r e c o r d s , d o c u m e n t s , a n d o t h e r e v i d e n c e a n d t h e
1 8 1
accounting procedures and practices, where needed, to verify the costs and expenses claimed.
The Commission retains this right for at least three years after final payment and until all
disputes, appeals, litigation, or claims have been resolved. This right to audit shall also include
inspection at reasonable times of the consultant's office or facilities which are engaged in the
performance of the contract. In addition, the consultant shall, at no cost or expense to the
Commission, furnish reasonable facilities and assistance for such an audit. Audit findings shall,
to the extent allowed by law, be treated by the Commission as confidential.
End of Statement of Work
•
182
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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 :
A u g u s t 2 3 , 2 0 1 0
T O :
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
F R O M :
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 :
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
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
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 t t e e 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 ) F o r w a r d t o t h e C o m m i s s i o n f o r f i n a l a c t i o n .
B A C K G R O U N D I N F O R M A T I O N :
S t a t e R o u t e 9 1 D e s i g n - B u i l d L e g i s l a t i o n U p d a t e
A t t h e t i m e t h i s r e p o r t w a s w r i t t e n , n e g o t i a t i o n s c o n t i n u e d i n S a c r a m e n t o
r e g a r d i n g t h e f a t e o f d e s i g n - b u i l d l e g i s l a t i o n f o r t h e S R - 9 1 C o r r i d o r I m p r o v e m e n t
P r o j e c t . T h e r e g u l a r s e s s i o n o f t h e L e g i s l a t u r e e n d s o n A u g u s t 3 1 ; a l l b i l l s m u s t b e
p a s s e d b y t h a t t i m e . S t a f f w i l l p r o v i d e a n o r a l r e p o r t o n t h e s t a t u s o f d e s i g n - b u i l d
l e g i s l a t i o n , g i v e n t h e s i t u a t i o n r e m a i n s f l u i d .
T h e C o m m i s s i o n i s g r a t e f u l t o t h e m e m b e r s o f t h e L e g i s l a t u r e a n d i t s b u s i n e s s a n d
l a b o r a l l i e s w h o c o n t i n u e t o s u p p o r t t h i s e f f o r t i n S a c r a m e n t o .
F R E I G H T A c t I n t r o d u c e d t o F u n d N a t i o n a l G o o d s M o v e m e n t P r o j e c t s
S e n a t o r F r a n k L a u t e n b e r g ( D - N J ) , c h a i r o f t h e S u b c o m m i t t e e o n S u r f a c e
T r a n s p o r t a t i o n , M e r c h a n t M a r i n e I n f r a s t r u c t u r e , S a f e t y a n d S e c u r i t y , h a s
i n t r o d u c e d t h e F o c u s i n g R e s o u r c e s , E c o n o m i c I n v e s t m e n t , a n d G u i d a n c e t o H e l p
T r a n s p o r t a t i o n ( F R E I G H T A c t ) . T h i s b i l l w o u l d e s t a b l i s h a N a t i o n a l F r e i g h t
T r a n s p o r t a t i o n P o l i c y a n d s t r a t e g i c p l a n a n d p r o v i d e f o r n a t i o n a l - f r e i g h t
i n f r a s t r u c t u r e i n v e s t m e n t g r a n t s t o a c h i e v e t h e g o a l s o f t h e p o l i c y a n d s t r a t e g i c
p l a n .
S t a f f f i n d s t h e b i l l t o b e a n e n c o u r a g i n g s t e p i n t h e p r o c e s s o f e n s u r i n g a g r e a t e r
r o l e f o r g o o d s m o v e m e n t i n t h e n e x t s u r f a c e t r a n s p o r t a t i o n a u t h o r i z a t i o n b i l l . T h e
F R E I G H T A c t c r e a t e s a n o b j e c t i v e m e r i t - b a s e d f r a m e w o r k t o a w a r d f e d e r a l g r a n t s
A g e n d a I t e m 1 2
1 8 3
to nationally significant goods movement projects, with a focus on performance
outcomes relating to economic competitiveness, congestion, pollution, the
environment, energy, and public health. The bill closely follows the principles for
national freight investment advocated by the Coalition for America's Gateways and
Trade Corridors, of which the Commission is a member.
Missing from the bill is a revenue title, meaning that there is no mention of how
large this freight program would be or where the funds would come from to pay for
it. The bill only focuses on policy, while leaving the money details to the Senate
Finance Committee. The bill also does not seem to indicate that grade separations
are eligible for national freight infrastructure investment grants. This issue will be
of serious concern to the Commission as the bill moves forward.
The FREIGHT Act will more Hilly become a part of the full surface transportation
authorization bill, when it is written, rather than a stand-alone bill. It is also likely
that this bill will have to be reintroduced in 2011, in the new session of Congress.
Therefore, staff is not recommending that the Commission take a position on the
bill. Instead, Commission staff and lobbyists will work with the Senate Commerce
Committee to discuss the issue of grade separation eligibility.
The Commission retains a support position on Representative Ken Calvert's (R-CA)
On Time Act, which provides a return -to -source freight investment program that
actually includes a revenue mechanism to fund goods movement projects, including
grade separations. Eventual support for the FREIGHT Act, if amended to include
grade separations, would not necessarily be in conflict with support for
Representative Calvert's legislation.
Congress Makes Progress on Fiscal Year 2011 Appropriations
The House of Representatives have approved its FY 2011 appropriations bill for
Transportation, Housing, and Urban Development (THUD). The Senate
Appropriations THUD subcommittee has reported out a bill that is awaiting a vote
by the full Senate. Both bills contain $23.49 million of Federal Transit
Administration Small Starts funds for the Perris Valley Line (PVL) Metrolink
extension. The President has requested these funds for PVL, and is supported by
Senators Barbara Boxer and Dianne Feinstein. This represents the final installment
of Small Starts funding for the project; a total of $75 million can be granted per
project under the Small Starts program.
The Senate subcommittee bill contains $1 million for Metrolink's positive train
control (PTC) project. The House bill contains $75 million nationally for PTC
projects to be awarded by the Federal Railroad Administration. The Rail Safety and
Improvement Act of 2009 originally authorized only $50 million per year for PTC,
so it is encouraging to see higher levels of PTC funding being proposed for this new
Agenda Item 12
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•
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184
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s a f e t y t e c h n o l o g y . C r e d i t i s o w e d t o m a n y m e m b e r s o f t h e S o u t h e r n C a l i f o r n i a
l e g i s l a t i v e d e l e g a t i o n f o r p u s h i n g f o r g r e a t e r i n v e s t m e n t i n P T C .
A l s o o f n o t e i s t h a t b o t h b i l l s p r o p o s e a n o t h e r T r a n s p o r t a t i o n I n v e s t m e n t
G e n e r a t i n g E c o n o m i c R e c o v e r y ( T I G E R ) c o m p e t i t i v e g r a n t p r o g r a m . T h i s c o n c e p t
b e g a n w i t h t h e A m e r i c a n R e c o v e r y a n d R e i n v e s t m e n t A c t ( A R R A ) i n 2 0 0 9 , w i t h a
$ 1 . 5 b i l l i o n p r o g r a m ; a s e c o n d i n s t a l l m e n t o f f u n d i n g w a s p r o v i d e d i n F Y 2 0 1 0 a t a
m u c h l o w e r l e v e l o f $ 6 0 0 m i l l i o n . T h e H o u s e p r o p o s e s $ 6 0 0 m i l l i o n f o r F Y 2 0 1 1
a n d t h e S e n a t e p r o p o s e s $ 8 0 0 m i l l i o n . R e g a r d l e s s , t h e n a t i o n a l i n f r a s t r u c t u r e
d e f i c i t f a r o u t w e i g h s t h e s m a l l a m o u n t o f f u n d i n g p r o v i d e d b y t h e s e c o m p e t i t i v e
d i s c r e t i o n a r y p r o g r a m s a t U . S . 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 .
I t i s n o t c l e a r w h e n a f i n a l F Y 2 0 1 1 T H U D a p p r o p r i a t i o n b i l l w i l l b e p a s s e d b y
C o n g r e s s . M a n y t h e o r i e s a b o u n d a s t o w h e t h e r a C o n f e r e n c e b i l l c a n b e a p p r o v e d
p r i o r t o t h e N o v e m b e r g e n e r a l e l e c t i o n , i n a " l a m e d u c k " s e s s i o n t h i s w i n t e r , o r
e v e n n e x t c a l e n d a r y e a r . F u n d s w i l l n o t b e a v a i l a b l e u n d e r t h e f i n a l C o n f e r e n c e b i l l
r e c e i v e s t h e P r e s i d e n t ' s s i g n a t u r e .
A g e n d a I t e m 1 2
1 8 5