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Rivenide Coon*f Tro~portation Commission TO: Riverside County Transportation Commission FROM: Jennifer Harmon, Office and Board Services Manager DATE: April 17, 2013 SUBJECT: Possible Conflicts of Interest Issues -Budget and Implementation Committee Agenda of April 22, 2013 The April 22, 2013 agenda of the Budget and Implementation Committee includes items which may raise possible conflicts of interest. A RCTC member may not participate in any discussion or action concerning a contract or amendment if a campaign contribution of more than $250 is received in the past 12 months or 3 months following the conclusion from any entity or individual listed. Agenda Item No. 10 -Agreements for Investment Management Services Consultant(s): Logan Circle Partners L. P. 1717 Arch Street, Suite 1500 Philadelphia, PA 19103 Jude T. Driscoll, Chief Executive Officer Payden & Tygel 333 South Grand A venue Los Angeles, CA 90071 Edward S. Garlock, Managing Principal Agenda Item No. 13 -Agreement with CASE Systems, Inc. for Call Box System Maintenance Services Consultant(s): CASE Systems, Inc. 5 Goddard Irvine, CA 92618 Sebastian E. Gutierrez, President/CEO
TaraS~ From: Sent: To: Cc: Tara Byerly Thursday, April18, 2013 7:14AM Tara Byerly Jennifer Harmon Subject: Attachments: URGENT: UPDATE TO THE BUDGET AND IMPLEMENTATION COMMITTEE AGENDA RCTC Budget and Implementation Page 2 of the Face Agenda. pdf Importance: Tracking: High Recipient Tara Byerly Jennifer Harmon 'rogernberg@msn.com' 'terry1 henderson@aol.com' 'shernandez@coachella.org' 'mec336@verizon. net' 'rgibbs@murrieta.org' 'sadams@riversideca.gov' 'jbrookshire@riversideca.gov' Good Morning Budget and Implementation Committee Members: Read Read: 4/18/2013 7:15AM I'm attaching the second page of the Budget and Implementation Committee ((face" agenda for the April 22, 2013 as I inadvertently used the wrong year for the March 25 minutes. For those that receive the agenda link for their iPad the agenda is correct. I was just not able to grab the UPS overnight packages before the driver processed them. Also, I will have a copy for you at the dais just in case. Please let me know if you have any questions or concerns. I appreciate your cooperation in this matter. Thank you. Respectfully, TaraS. Byerly Senior Adnrin.istrative Assistant 4080 Lemon Street, 3rd Floor Riverside, CA 92501 (951) 787-7141 1
TaraB~ From: Sent: To: Cc: Subject: Attachments: Importance: Tara Byerly Thursday, April 18, 2013 6:37AM Tara Byerly Jennifer Harmon RCTC Budget and Implementation Committee Agenda -04.22.2013 Conflict of Interest Memo. pdf; Conflict of Interest Form. pdf High Good Morning Budget and Implementation Committee Members: Attached below is the link to the Budget and Implementation Committee agenda for the meeting scheduled @ 9:30a.m. on Monday, April 22. http://www. rete. org/u pload s/media items/budget-and-implementation-eomm ittee-april-22-201 3. original. pdf Also attached for your review and information is the conflict of interest memo and form. Please let me know if you have any questions. Thank you. Respectfully, TaraS. Byerly Senior Administrative Assistant 4080 Lemon Street, 3rd Floor Riverside, CA 92501 (951) 787-7141 1
RIVERSIDE COUNTY TRANSPORTATION COMMISSION BUDGET AND IMPLEMENTATION COMMITTEE www. rete. org AGENDA* *Actions may be taken on any item listed on the agenda 9:30a.m. Monday, April 22, 2013 BOARDROOM County Administrative Center 4080 Lemon Street, First Floor Riverside, California In compliance with the Brown Act and Government Code Section 5495 7. 5, agenda materials distributed 72 hours prior to the meeting, which are public records relating to open session agenda items, will be available for inspection by members of the public prior to the meeting at the Commission office, 4080 Lemon Street, Third Floor, Riverside, CA, and on the Commission's website, www. rete. org. In compliance with the Americans with Disabilities Act and Government Code Section 54954.2, if you need special assistance to participate in a Committee meeting, please contact the Clerk of the Board at (951) 787-7141. Notification of at least 48 hours prior to meeting time will assist staff in assuring that reasonable arrangements can be made to provide accessibility at the meeting. 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. PUBLIC COMMENTS -Each individual speaker is limited to speak three (3) continuous minutes or less. The Committee may, either at the direction of the Chair or by majority vote of the Committee, waive this three minute time limitation. Depending on the number of items on the Agenda and the number of speakers, the Chair may, at his/her discretion, reduce the time of each speaker to two (2) continuous minutes. Also, the Committee may terminate public comments if such comments become repetitious. In addition, the maximum time for public comment for any individual item or topic is thirty (30) minutes. Speakers may not yield their time to others without the consent of the Chair. Any written documents to be distributed or presented to the Committee shall be submitted to the Clerk of the Board. This policy applies to Public Comments and comments on Agenda Items.
Budget and Implementation Committee April 22, 2013 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 members may refer such matters to staff for factual information or to be placed on the subsequent agenda for consideration. 5. APPROVAL OF MINUTES-MARCH 25, 2013 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. 7 A. SINGLE SIGNATURE AUTHORITY REPORT Page 1 Overview This item is for the Committee to: 1) Receive and file the Single Signature Authority report for the third quarter ended March 31, 2013; and 2) Forward to the Commission for final action. 8. PROPOSED BUDGET FOR FISCAL YEAR 2013/14 Page 3 Overview This item is for the Committee to: 1) Discuss, review, and provide guidance on the proposed FY 2013/14 Budget; 2) Open the public hearing in order to receive input and comments on the proposed FY 2013/14 Budget on May 8 and on June 12, 2013, and thereafter close the public hearing; and 3) Forward to the Commission for final action.
Budget and Implementation Committee April 22, 2013 Page 3 9. STATE ROUTE 91 CORRIDOR IMPROVEMENT PROJECT TOLL-SUPPORTED DEBT FINANCINGS Page 21 Overview This item is for the Committee to: 1) Adopt Resolution No. 13-004, "Resolution Authorizing Agreements Relating to the Sale of Not to Exceed $400,000,000 Aggregate Principal Amount of Riverside County Transportation Commission Toll Revenue Bonds in One or More Series, Including the Execution and Delivery of a Master Indenture, a First Supplemental Indenture, a Second Supplemental Indenture, a Purchase Contract, an Official Statement, and a Continuing Disclosure Agreement, and a Loan Agreement Relating to Transportation Infrastructure Finance and Innovation Act Program Credit Assistance, and the Taking of All Other Actions Necessary in Connection Therewith"; 2) Approve the draft Official Statement for the issuance for a not to exceed amount of $400 million in 2013 Toll Bonds and authorize the Executive Director to approve and execute the printing and distribution of the Official Statement; 3) Approve the draft Continuing Disclosure Agreement related to the 2013 Toll Bonds between the Riverside County Transportation Commission and Digital Assurance Certification, L.L.C., as dissemination agent, and authorize the Executive Director to approve and execute the final Continuing .Disclosure Agreement; 4) Confirm the approval of, and ratify proposed changes to, the draft form of the Master Indenture, previously approved by the Commission at its July 2010 meeting, between the Riverside County Transportation Commission and Bank of New York Mellon Trust Company, N.A. (BNYM), as Trustee, related to the 2013 Toll Bonds and authorize the Executive Director to approve and execute the final Indenture; 5) Confirm the approval of, and ratify proposed changes to, the draft form of the First Supplemental Indenture, previously approved by the Commission at its July 2010 meeting, between the Riverside County Transportation Commission and Bank of New York Mellon Trust Company, N.A., as Trustee, related to the 2013 Toll Bonds and authorize the Executive Director to approve and execute the final First Supplemental Indenture; 6) Approve the draft Second Supplemental Indenture for the TIFIA loan between the Riverside County Transportation Commission and Bank of New York Mellon Trust Company, N.A., as Trustee, and authorize the Executive Director to approve and execute the final Second Supplemental Indenture;
Budget and Implementation Committee April 22, 2013 Page 4 7) Approve the draft Bond Purchase Agreement between the Riverside County Transportation Commission and Bank of America Merrill Lynch and Goldman, Sachs & Co., as Underwriter Representative acting on behalf of itself and J.P. Morgan Securities, (collectively the Underwriters), for the 201 3 Toll Bonds and authorize the Executive Director to approve and execute the final Bond Purchase Agreement; 8) Approve the draft TIFIA Loan Agreement between the Riverside County Transportation Commission and the USDOT for an amount not to exceed · $451 million and authorize the Executive Director to approve and execute the final Bond Purchase Agreement; and 9) Forward to the Commission for final action. 1 0. AGREEMENTS FOR INVESTMENT MANAGEMENT SERVICES Page 341 Overview This item is for the Committee to: 1) Award Agreement No. 13-19-077-00, to Logan Circle Partners, L.P. and Agreement No. 13-19-135-00, to Payden & Rygel Investment Management for investment management services for a five-year term, and two additional one-year options to extend the agreement, for a total period of performance of up to seven years, in an aggregate amount of $2.3 million, plus a contingency amount of $200,000, for a total amount not to exceed in an aggregate value of $2.5 million; 2) Authorize the Chair or Executive Director, pursuant to legal counsel review, to execute the agreements, including option years, on behalf of the Commission; 3) Authorize the Executive Director or designee to approve contingency work up to the total authorized amount as may be required during the period of services; and 4) Forward to the Commission for final action. 11. FEDERAL SURFACE TRANSPORTATION PROGRAM 2013 CALL FOR REHABILITATION PROJECTS Page 376 Overview This item is for the Committee to: 1) Approve programming federal Surface Transportation Program (STP) funds for rehabilitation projects in the amount of $12.142 million as submitted; and 2) Forward to the Commission for final action.
Budget and Implementation Committee April 22, 2013 Page 5 12. SUNLINE TRANSIT AGENCY'S FISCAL YEAR 2012/13 SHORT RANGE TRANSIT PLAN AMENDMENT Page 380 Overview This item is for the Committee to: 1) Approve modification to Sun line Transit Agency's (Sunline) FY 2012/13 capital improvement program to reflect an additional $1 ,456,000 in Federal Transit Administration (FTA) Section 5309 State of Good Repair (SGR) program funds and $314,584 in South Coast Air Quality Management District (SCAOMD) funds for the solar panel replacement and new installation project; 2) Allocate $49,416 in State Transit Assistance (STA) funds to cover needed capital matching funds for the above Section 5309 program solar panel project; 3) Approve an amendment to Sun line's Short Range Transit Plan (SRTP) to reflect the changes above; and 4) Forward to the Commission for final action. 13. AGREEMENT WITH CASE SYSTEMS, INC. FOR CALL BOX SYSTEM MAINTENANCE SERVICES Page 383 Overview This item is for the Committee to: 1) Award Agreement No. 13-45-102-00 with CASE Systems, Inc. for call box system maintenance services throughout Riverside County for a three-year term, and two one-year options to extend the agreement, in an amount not to exceed $1,250,000; 2) Authorize the Chair or Executive Director, pursuant to legal counsel review, to execute the agreement on behalf of the Commission; and 3) Forward to the Commission for final action.
Budget and Implementation Committee April 22, 2013 Page 6 14. MEMORANDUM OF UNDERSTANDING WITH SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS FOR THE RISING STARS IN TRANSIT INTERNSHIP PROGRAM Page 414 Overview This item is for the Committee to: 1) Approve Memorandum of Understanding (MOU) No. 13-25-106-00 between the Commission and the Southern California Association of Governments (SCAG) for the Rising Stars in Transit -Internships for University Students program; 2) Authorize the Executive Director, pursuant to legal counsel review, to execute the MOU on behalf of the Commission; and 3) Forward to the Commission for final action. 15. STATE AND FEDERAL LEGISLATIVE UPDATE Page 436 Overview This item is for the Committee to: 1) Receive and file an update on state and federal legislation; 2) Adopt a Support position on AB 1 081 (Medina); and 3) Forward to the Commission for final action. 16. COMMISSIONERS I 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. 17. ADJOURNMENT AND NEXT MEETING ·The next Budget and Implementation Committee meeting is scheduled to be held at 9:30 a.m., Monday, June 24, 2013, Board Chambers, First Floor, County Administrative Center, 4080 Lemon Street, Riverside.
RIVERSIDE COUNTY TRANSPORTATION COMMISSION BUDGET AND IMPLEMENTATION COMMITTEE ROLL CALL APRIL 22, 2013 Present Absent County of Riverside, District II County of Riverside, District Ill City of Beaumont City of Calimesa City of Canyon Lake City of Cathedral City City of Coachella City of Desert Hot Springs City of Hemet City of Indian Wells City of Lake Elsinore City of Murrieta City of Riverside City of Temecula if' D %_ D D ~-D I D : ~ %' ~ D jK' D D D D D D D D
RIVERSIDE COUNTY TRANSPORTATION COMMISSION BUDGET AND IMPLEMENTATION COMMITTEE SIGN-IN SHEET APRIL 22, 2013 E MAIL ADDRESS 4
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RIVERSIDE COUNTY TRANSPORTATION COMMISSION BUDGET AND IMPLEMENTATION COMMITTEE Monday, March 25, 2013 MINUTES 1. CALL TO ORDER The meeting of the Budget and Implementation Committee was called to order by Chair Ella Zanowic at 9:30 a.m., in the Board Room at the County of Riverside Administrative Center, 4080 Lemon Street, First Floor, Riverside, California, 92501. 2. PLEDGE OF ALLEGIANCE At this time, Commissioner Douglas Hanson led the Budget and Implementation Committee in a flag salute. 3. ROLL CALL Members/ Alternates Present Steve Adams Roger Berg Mary Craton Rick Gibbs Douglas Hanson Steven Hernandez Bob Magee Scott Matas Greg Pettis Ron Roberts Larry Smith Jeff Stone* John Tavaglione* Ella Zanowic Members Absent *Arrived after the meeting was called to order
RCTC Budget and Implementation Committee Minutes March 25, 2013 Page 2 4. PUBLIC COMMENTS There were no requests to speak from the public. 5. APPROVAL OF MINUTES-FEBRUARY 25, 2013 M/S/C (Craton/Adams) to approve the minutes of February 25, 2013 meeting as submitted. At this time, Commissioners Jeff Stone and John Tavaglione arrived at the meeting. 6. ADDITIONS I REVISIONS There were no additions or revisions to the agenda. 7. STATE ROUTE 91 CORRIDOR IMPROVEMENT PROJECT PLAN FINANCING Theresia Trevino, Chief Financial Officer, updated the Commission on the State Route 91 Corridor Improvement Project (SR-91 CIP) plan of finance, highlighting the following areas: • 2009 Measure A financing history; • SR-91 CIP team; • Creditworthiness summary; • SR-91 CIP financial and plan of finance overviews; • Preliminary SR-91 CIP sources and uses; • Measure A pay go contribution; • 2013 sales tax and toll revenue bonds; • Transportation Infrastructure Finance and Innovation Act (TIFIA) loan; • SR-91 CIP flow of funds; • Toil-supported debt events of default; • SR-91 CIP financing documents; and • Next steps. In response to Commissioner Mary Craton's question for debt service coverage, Theresia Trevino replied there is a minimum requirement of 1 .3x for all senior and subordinated toll revenue-supported debt.
RCTC Budget and Implementation Committee Minutes March 25, 2013 Page 3 At Commissioner Craton's request, Dan Wiles, Fieldman Rolapp and Associates, explained the section of the resolution regarding the toll revenue bonds, where there is an indenture under which the Commission pledges all of its interest in net toll revenues for the bond holders. Commissioner Rick Gibbs expressed appreciation for the presentation and requested clarification on the total cost of the project in the plan of finance. Theresia Trevino replied it is anticipated the total cost will be $1 .3 billion. In response to Commissioner Gibbs' request about staff's comfort level with this complex plan of finance, Theresia Trevino replied these bonds are fixed rate bonds and expressed being very comfortable with the plan of finance. In response to Commissioner Gibbs' clarification about interest rate swaps, Theresia Trevino stated the master indenture for the toll bonds provides the ability to enter into swaps. However, the Commission does not contemplate entering into interest rate swaps. The current plan has sufficient cushion in the sales tax bonds to ensure the Commission is able to service the debt. At Commissioner Gibbs' request, Dan Wiles explained Section 39.01 of the Redemption and Purchase of 2013 Series A Bonds related to optional redemption and mandatory sinking account payments. Commissioner Gibbs then asked about 1) the boiler plate indemnification statement, 2) negative impacts of not having a reserve fund requirement for 2013 Bonds, and 3) letters of credit. Theresia Trevino replied 1) it is payable solely from the sales tax revenues, 2) the only negative impact would be for the bond holders of the sales tax bonds, and 3) there are two letters of credit for the Commercial Paper program and there is two liquidity facilities supporting $60 million series of commercial paper and it includes a component for accrued interest. In response to Commissioner Gibbs' question regarding the U.S Secretary of Transportation's signing of the TIFIA Loan Agreement, Anne Mayer stated the Department of Transportation Credit Council approved the Commission's loan and expressed appreciation if Secretary LaHood signed the loan agreement as he was an integral part of this approval process. At Commissioner Gibbs' request, Theresia Trevino then explained the TIFIA loan disbursement conditions and project oversight and monitoring.
RCTC Budget and Implementation Committee Minutes March 25, 2013 Page 4 Commissioner Gibbs commended staff for an incredible job on the plan of finance. M/S/C (Stone/Adams) to: 1 ) Receive and file the presentation regarding the issuance of the 2013 Series A Sales Tax Revenue Bonds (Sales Tax Bonds), issuance of the 2013 Series A (Current Interest Bonds) and Series B (Capital Appreciation Bonds) Toll Revenue Bonds (Toll Bonds), and receipt of a Transportation Infrastructure Finance and Innovation Act (TIFIA) loan from the U.S. Department of Transportation (USDOT); 2) Adopt Resolution No. 13-003, "Resolution Authorizing Agreements Relating to the Sale of Not to Exceed $275;000,000 Aggregate Principal Amount of Riverside County Transportation Commission T o/1 Revenue Bonds and the Issuance and Sale of Not to Exceed $475,000,000 Aggregate Principal Amount of Riverside County Transportation Commission Sales Tax Revenue Bonds (Limited Tax Bonds) in One or More Series, Including the Execution and Delivery of a Fifth Supplemental Indenture, a Purchase Contracts, Official Statements, and Continuing Disclosure Agreements, and a Loan Agreement Relating to Transportation Infrastructure Finance and Innovation Act Program Credit Assistance, and the Taking of All Other Actions Necessary in Connection Therewith"; 3) Approve the draft Official Statement for the issuance of $445 million in 2013 Sales Tax Bonds and authorize the Executive Director to approve and execute the printing and distribution of the Official Statement; 4) Approve the draft Continuing Disclosure Agreement related to the 2013 Sales Tax Bonds between the Riverside County Transportation Commission and Digital Assurance Certification, L.L.C., as dissemination agent, and authorize the Executive Director to approve and execute the final Continuing Disclosure Agreement; 5) Approve the draft Fifth Supplemental Indenture for the 2 013 Sales Tax Bonds between the Riverside County Transportation Commission and U.S. Bank National Association (US Bank), as Trustee, and authorize the Executive Director to approve and execute the final Fifth Supplemental Indenture;
RCTC Budget and Implementation Committee Minutes March 25, 2013 Page 5 6) Approve the draft Bond Purchase Agreement between the Riverside County Transportation Commission and Bank of America Merrill Lynch (BAML) and Goldman, Sachs & Co. (Goldman), as Underwriter Representative acting on behalf of itself and J.P. Morgan Securities (JPM), Barclays Capital Inc. (Barclays), and E.J. De La Rosa & Co. Inc. (De La Rosa), (collectively the Underwriters), for the 2013 Sales Tax Bonds and authorize the Executive Director to approve and execute the final Bond Purchase Agreement; 7) Authorize the Executive Director or Chief Financial Officer to reduce the authorized amount of the commercial paper program from $120 million to an amount sufficient to pay other 2009 Measure A costs for highway projects in the Western County and Coachella Valley and to terminate or reduce the letter of credit reimbursement agreements accordingly; 8) Approve the revised Debt Management Policy; 9) Approve the estimated costs of issuance to be paid from the bond proceeds and execution of related agreements, as required; and · 1 0) Forward to the Commission for final action. At this time, Commissioners Steven Hernandez and Bob Magee left the meeting. 8. 2013 SPECIALIZED TRANSIT CALL FOR PROJECTS -JOBS ACCESS REVERSE COMMUTE, NEW FREEDOM, AND MEASURE A SPECIALIZED TRANSIT GRANT AWARDS Robert Yates, Multimodal Services Director, provided an overview for the 2013 Specialized Transit Call for Projects (2013 Call for Projects) for the Jobs Access Reverse Commute (JARC), New Freedom, and Measure A Specialized Transit grant awards. At Commissioner Greg Pettis' request for a status of SunLine Transit Agency's (SunLine) JARC funding and its audits, Robert Yates replied there is existing JARC funding from the 2011 Call for Projects going to SunLine to fund the Taxi Voucher program and the Route 220 Commuter Link service. He explained for the 2013 Call for Projects, SunLine has two projects being funded, which is the new service to North Shore and the extension to continue the Route 220 Commuter Link service. SunLine is audited through the Triennial Performance Audit as well as the Measure A Transit Development Act (TDA), which includes the federal awards.
RCTC Budget and Implementation Committee Minutes March 25, 2013 Page 6 Anne Mayer explained staff believes the issues raised by Sunline with respect to this funding are resolved. Staff does not anticipate this situation to occur with these awards from the 2013 Call for Projects. Commissioner Pettis requested any future issues be brought to the Budget and Implementation Committee for discussion. M/S/C (Hanson/Matas) to: 1) Approve Agreement No. 13-26-115-00 with Care-A-Van Services, Inc. for the provision of directly operated transportation services (Care-A-Van Project) in an amount not to exceed $715,000 in Measure A Specialized Transit grant funds; 2) Approve Agreement No. 13-26-116-00 with Community Connect for the provision of transportation pass or voucher services (Transportation Access Program) in an amount not to exceed $368,632 in Measure A Specialized Transit grant funds; 3) Approve Agreement No. 13-26-117-00 with Riverside Transit Agency (RTA) for the provision of directly operated transportation services (Commuterlink Service, Routes 212 and 217) in an amount not to exceed $569,957 in Jobs Access Reverse Commute (JARC) grant funds and $182,386 in Measure A Specialized Transit grant funds; 4) Approve Agreement No. 13-26-118-00 with the Independent Living Partnership for the provision of mileage reimbursement to volunteer drivers (Transportation Reimbursement and Information Project -TRIP Western Riverside) in an amount not to exceed $1,173,759 in Measure A Specialized Transit grant funds; 5) Approve Agreement No. 13-26-119-00 with Care Connexxus, Inc. for the provision of directly operated transportation services (Specialized Transit Project) in an amount not to exceed $505,000 in Measure A Specialized Transit grant funds; 6) Approve Agreement No. 13-26-120-00 with RTA for the provision of mobility management and travel training service (RTA Travel Training Project) in an. amount not to exceed $475,536 in New Freedom grant funds; 7) Approve Agreement No. 13-26-121-00 with RTA for the provision of directly operated transportation services (Extended Service Project) in an amount not to exceed $871,930 in JARC funds and $279,018 in Measure A Specialized Transit grant funds;
RCTC Budget and Implementation Committee Minutes March 25, 2013 Page 7 8) Approve Agreement No. 13-26-122-00 with the Riverside County Regional Medical Center for the provision of directly operated transportation services (Specialized Non-Emergency Medical Transportation program) in an amount not to exceed $182,071 in New Freedom grant funds and $487,971 in Measure A Specialized Transit grant funds; 9) Approve Agreement No. 13-26-123-00 with Community Connect for the provision of transportation information services (211 Riverside One Call/One Click Project) in an amount not to exceed $158,400 in Measure A Specialized Transit grant funds; 10) Approve Agreement No. 13-26-124-00 with Operation SafeHouse, Inc. for the provision of directly operated transportation services (Main Street Transitional Living Program) in an amount not to exceed $49,872 in Measure A Specialized Transit grant funds; 11) Approve Agreement No. 13-26-125-00 with Inland Aids Project for the provision of directly operated transportation services (Inland Aids Project Transportation Program) in an amount not to exceed $164,932 in Measure A Specialized Transit grant funds; 12) Approve Agreement No. 13-26-126-00 with United States Veterans Initiative for the provision of directly operated transportation services (U.S. Vets Transportation Program) in an amount not to exceed $86,610 in Measure A Specialized Transit grant funds; 13) Approve Agreement No. 13-26-127-00 with the Friends of Moreno Valley Senior Center, Inc. for the provision of directly operated transportation services (Mo Van Transit Service) in an amount not to exceed $134,323 in Measure A Specialized Transit grant funds; 14) Approve Agreement No. 13-26-128-00 with Court Appointed Special Advocates for Riverside County, Inc. (C.A.S.A.) for Riverside County for the provision of mileage reimbursement to volunteer drivers (Specialized Transportation Service for Abused Children Program) in an amount not to exceed $144,245 in Measure A Specialized Transit grant funds; 15) Approve Agreement No. 13-26-129-00 with Boys and Girls Clubs of Southwest County for the provision of directly operated transportation services (Before and After School Transportation Program) in an amount not to exceed $544,170 in Measure A Specialized Transit grant funds;
RCTC Budget and Implementation Committee Minutes March 25, 2013 Page 8 16) Approve Agreement No. 13-26-130-00 with city of Norco Parks Department for the provision of directly operated transportation services (Norco Senior Shuttle Service Program) in an amount not to exceed $120,000 in Measure A Specialized Transit grant funds; 17) Approve Agreement No. 13-26-131-00 with Blindness Support Services, Inc. for the provision of travel training services (Travel Training Program) in an amount not to exceed $159,826 in Measure A Specialized Transit grant funds; 18) Approve Agreement No. 13-26-110-00 with Sunline Transit Agency (Sunline) for the provision of directly operated transportation service (Sunline North Shore Bus Service) in an amount not to exceed $217,270 in JARC grant funds; 19) Approve Agreement No. 13-26-111-00 with Sunline for the provision of directly operated transportation service (Sunline Commuter Service) in an amount not to exceed $65,856 in JARC grant funds and $43,863 in New Freedom grant funds; 20) Approve Agreement No. 13-26-112-00 with the Independent Living Partnership for the provision of mileage reimbursement to volunteer drivers (Transportation Reimbursement and Information Project -TRIP Coachella Valley) in an amount not to exceed $100,000 in New Freedom grant funds; 21) Approve Agreement No. 13-26-113-00 with the Coachella Valley Association of Governments (CVAG) for the provision of directly operated transportation and mobility management (Transportation Program) in an amount not to exceed $110,000 in JARC grant funds; 22) Approve Agreement No. 13-26-114-00 with the Desert Samaritans for Seniors for the provision of directly operated transportation (Senior Transportation Program) in an amount not to exceed $57,488 in New Freedom grant funds; 23) Authorize the Chair, pursuant to legal counsel review, to execute the agreements on behalf the Commission; and 24) Forward to the Commission for final action. 9. STATE LEGISLATIVE UPDATE Aaron Hake, Government Relations Manager, presented the proposed bill positions and an overview of state legislative activities. At this time, Commissioner John Tavaglione left the meeting.
RCTC Budget and Implementation Committee Minutes March 25, 2013 Page 9 In response to Commissioner Larry Smith's request for clarification on AB 574 (Lowenthal), Aaron Hake replied it is no longer a spot bill and the language is complete. Also, the initiation process remains the same. At Anne Mayer's request, Aaron Hake provided the details of the initiation process for relinquishment. Anne Mayer added if there is an issue with the technical aspects of the relinquishment such as being relinquished without any upgrades or funding, then the local jurisdiction can raise objections. Commissioner Smith referred to SB 337 (Emmerson) and stated if it becomes law what the time frame is when it is implemented. Aaron Hake replied it is not specified in the bill and referred to AB 574. Anne Mayer stated it will depend on what the city is looking for in the relinquishment. Commissioner Smith explained the city of Hemet's (Hemet) position is an evaluation process and Hemet would be anxious to go through that entire process. He stated Hemet prefers to have a time frame to do the evaluation and encouraged all Commissioners to support SB 337. M/S/C (Adams/Smith) to: 1) Receive and file an update on state legislation; and 2) Adopt the following bill positions: a) AB 14 (Lowenthal) -Support; b) AB 179 (Bocanegra) -Oppose c) AB 266 (Biumenfield)-Oppose; d) AB 487 (Linder)-Support; e) AB 574 (Lowenthal)-Support; f) SB 337 (Emmerson)-Support; g) SB 731 (Steinberg) -Monitor/Work With Author; and 3) Forward to the Commission for final action. Abstain: Stone on AB 266 (Biumenfield) 10. COMMISSIONERS I EXECUTIVE DIRECTOR REPORT 1 OA. Commissioner Gibbs announced the city of Murrieta is a member of the CEQA Working Group.
RCTC Budget and Implementation Committee Minutes March 25, 2013 Page 10 11. ADJOURNMENT AND NEXT MEETING There being no further business for consideration by the Budget and Implementation Committee, the meeting was adjourned at 10:41 a.m. The next meeting of the Budget and Implementation Committee is scheduled for April 22, 2013 at 9:30 a.m. Respectfully submitted, o~ Jennifer Harmon Clerk of the Board \\~
VL LN311 1N31
RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: April 22, 201 3 TO: Budget and Implementation Committee FROM: Marla Dye, Procurement Administrator Matt Wallace, Procurement Manager THROUGH: Theresia Trevino, Chief Financial Officer SUBJECT: Single Signature Authority Report STAFF RECOMMENDATION: This item is for the Committee to: 1) Receive and file the Single Signature Authority report for the third quarter ended March 31 , 201 3; and 2) Forward to the Commission for final action. BACKGROUND INFORMATION: Certain contracts are executed under single signature authority as permitted in the Commission's Procurement Policy Manual adopted in December 2012. The Executive Director is authorized to sign services contracts that are less than $100,000 individually and in an aggregate amount not to exceed $1 million in any given fiscal year. Additionally, in accordance with Public Utilities Code Section 130323(c), the Executive Director is authorized to sign contracts for supplies, equipment, materials, and construction of all facilities and works under $50,000 individually. The attached report details all contracts that have been executed for the third quarter ended March 31, 2013, under the single signature authority granted to the Executive Director. The unused capacity of single signature authority for services at March 31, 2013 is $445,528. Attachment: Single Signature Authority Report as of March 31, 2013 Agenda item 7 A 1
CONSULTANT AMOUNT AVAILABLE July 1, 2012 Southstar Engineering & Consulting. California Highway Patrol (CHP) Temecula Alvarado Smith Arellano Associates, LLC Cambria Solutions, Inc Koff & Associates The Skancke Company AECOM Atkins North America Warner Water Works Info Tech Services Groups, Inc AMOUNT USED AMOUNT REMAINING through March 31,2013 SINGLE SIGNATURE AUTHORITY AS OF March 31, 2013 DESCRIPTION OF SERVICES ROW Management Support Services COZEEP for 1-215 (Part 2) Legal Representation DBE/SBE Outreach Services Toll Program Implementation Services Classification, Compensation & Benefit Study Amendment No. 3 for Federal Advocacy Services Construction Design & Enviromental Services for 1-215 E. Junction HOV Connectors. Right of Way Audit Services for the SR-91 CIP Station Street Sweeping Services Station Security Database Maintenance and Development Serivces Agreements that fall under Public Utilities Code 130323 (C) Marla Modell Theresia Trevino Prepared by Re;,;;,;;.,,;(! by Note: Shaded area represents new contracts listed in the third quarter. 2 ORIGINAL CONTRACT AMOUNT $1,000,000.00 33,000.00 32,000.00 100,000.00 55,000.00 100,000.00 50,000.00 4,471.79 100,000.00 10,000.00 60,000.00 10,000.00 554,471.79 $445,528.21 PAID AMOUNT 27,060.00 0.00 86,335.47 27,544.95 67,160.00 21,482.83 4,471.79 0.00 0.00 11,726.00 0.00 REMAINING CONTRACT AMOUNT 5,940.00 32,000.00 13,664.53 27,455.05 32,840.00 28,517.17 0.00 100,000.00 10,000.00 48,274.00 10,000.00
8 11\13.11 'VON39'V
~~--RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: April 22, 2013 TO: Budget and Implementation Committee FROM: Michele Cisneros, Accounting and Human Resources Manager THROUGH: Theresia Trevino, Chief Financial Officer SUBJECT: Proposed Budget for Fiscal Year 2013/14 STAFF RECOMMENDATION: This item is for the Committee to: 1) Discuss, review, and provide guidance on the proposed FY 2013/14 Budget; 2) Open the public hearing in order to receive input and comments on the proposed FY 2013/14 Budget on May 8 and on June 12, 2013, and thereafter close the public hearing; and 3) Forward to the Commission for final action. BACKGROUND INFORMATION: Staff completed the initial budget preparation process, and attached is an executive summary for the proposed FY 2013/14 Budget. The policy goals and objectives approved by the Commission on March 13 were the basis of this budget. The policy goals and objectives considered during the preparation of the budget relate to mobility initiatives, goods movement, improved system efficiencies, environmental stewardship, economic development, intermodalism and accessibility, and public and agency communications as well as financial and administration policies. Staff will present highlights of significant items included in the budget and is seeking review of and input on the proposed FY 2013/14 Budget. Based on input received from Commissioners, staff will update the document, as necessary, and present the proposed budget for the opening of the public hearing and for the Commission's review on May 8. As a result of input received from the public and the Commission, staff will make any necessary changes to the budget document for final review, close of the public hearing, and adoption at the June 12 Commission meeting. The executive summary document contains a summary of all departmental budgets and summarizes the information for the entire Commission. The department budgets present the goals and objectives, the resources needed to accomplish the Agenda Item 8 3
goals, and the appropriations required to accomplish the tasks. Staff also included the budgets by governmental fund type, as this table provides a summary of the budgeted revenues and expenditures from a fund perspective. Preliminary funding estimates for transit operating and capital expenditures have been included in the budget, although the draft Short Range Transit Plans are still under review. An adjustment for a revised estimate of these transit expenditures may be included in the final budget document presented in June 2013. At the June 12 Commission meeting, staff will present the entire budget with detailed narratives. A summary of the proposed FY 2013/14 Budget is as follows: FY 2013/14 Budget Revenues and other financing sources: Sales taxes-Measure A and Local Transportation Funds Reimbursements (federal, state, and other) Transportation Uniform Mitigation Funds, including reimbursements State Transit Assistance Other revenues Interest on investments Debt proceeds Transfers in Total revenues and other financing sources Expenditures and other financing uses: Personnel salary and fringe benefits Professional services Support services Projects and operations Capital outlay Debt service (principal, interest and costs of issuance) Transfers out Total expenditures and other financing uses Excess (deficiency} of revenues and other financing sources over (under} expenditures and other financing uses Beginning fund balance (projected} Ending fund balance (projected} $ Attachment: FY 2013/14 Proposed Budget Executive Summary Agenda Item 8 4 219,500,000 223,155,700 6,723,400 13,298,000 500,000 3,963,500 94,000,000 354,083,900 915,224,500 6,998,000 25,291,700 5,183,500 787,214,000 796,200 33,177,200 354,083,900 1 ,212, 744,500 (297,520,000) 11167,030,800 869,510,800
Executive Summary Introduction The budget for Fiscal Year {FY) 2013/14 is presented to the Board of Commissioners {Board) and the citizens of Riverside County. The budget outlines the projects the Commission plans to undertake during the year and appropriates expenditures to accomplish these tasks. The budget also shows the funding sources and fund balances that will be used for these projects. This document will serve as the Commission's monetary guideline. To provide the reader a better understanding of the projects, staff has included descriptive information regarding each department and major projects. The discussion in each department includes a review of accomplishments, major initiatives, and key assumptions. Staff used the goals and objectives approved at the Commission meeting on March 13, 2013, to prepare this budget. In addition to the Commission's long-term goals and strategic plan, the short-term factors listed below were used to guide the development of the budget: Operational • Aggressively pursue completion of the environmental, design, and construction processes on the State Route (SR) 91, Interstate {I) 15, and 1-215 projects included in the Western Riverside County Delivery Plan. • Enhance corridor mobility and traveler choice by continuing property acquisition and commencing construction on the SR-91 corridor improvement project and continuing to develop tolled express lanes on 1-15. • Work closely with local jurisdictions to administer the Transportation Uniform Mitigation Fee {TUMF) Regional Arterial Program and facilitate the delivery of eligible arterial improvements in western Riverside County {Western County). • Work closely with partners in the Coachella Valley to ensure the implementation of Measure A funding priorities. • Complete projects and programs included in the 1989 Measure A. • Continue the preliminary engineering and environmental clearance for the Mid County Parkway and SR-79 realignment projects. • Work with local and regional agencies in developing resources for preservation and maintenance of the highways and regional arterials. • Continue cooperation with the Federal Transit Administration {FTA) regarding the Small Starts process to support activities for the Perris Valley Line Metrolink extension (Perris Valley Line) project. • Improve utilization and increase efficiency of commuter rail lines serving the County. • Support innovative programs that provide transit assistance in hard to serve rural areas or for riders with special transit needs. • Support cost controls and promote operating efficiency for transit operators. • Maintain effective partnerships among commuters, employers, and government to increase the efficiency of our transportation system by encouraging and promoting motorized and non-motorized transportation alternatives.· • Continue to provide a motorist aid system that ensures safety and convenience to freeway motorists. • Maintain an active involvement in state and federal legislative matters to ensure that the Commission receives proper consideration for transportation projects and funding. • Explore local options for sustainable funding in addressing long-term transportation and quality-of-life needs for Riverside County. • Maintain close communication with Commissioners and educate policy makers on all issues of importance to the Commission. Financial • Fund administrative costs with allocations from Measure A, L TF, FSP, SAFE, and TUMF funds. • Maintain administrative program delivery costs below the policy threshold of 4% of Measure A revenues; the FY 2013/14 Management Services budget is 2.32% of Measure A revenues. 5
" M a i n t a i n a d m i n i s t r a t i v e s a l a r i e s a n d b e n e f i t s a t l e s s t h a n 1 % o f M e a s u r e A r e v e n u e s ; t h e F Y 2 0 1 3 / 1 4 a d m i n i s t r a t i v e s a l a r i e s a n d b e n e f i t s i s . 8 2 % o f M e a s u r e A r e v e n u e s . " C o n t i n u e t o m a i n t a i n p r u d e n t c a s ) 1 r e s e r v e s t o p r o v i d e s o m e l e v e l o f i n s u l a t i o n f o r u n p l a n n e d e x p e n d i t u r e s . " M a i n t a i n c u r r e n t p o s i t i v e b o n d r a t i n g s w i t h r a t i n g a g e n c i e s . " M o v e f o r w a r d o n M e a s u r e A p r o j e c t s f o r h i g h w a y s a n d r e g i o n a l a r t e r i a l s u s i n g s a l e s t a x r e v e n u e s , T U M F r e v e n u e s , a n d s t a t e a n d f e d e r a l f u n d i n g a s w e l l a s f i n a n c i n g a l t e r n a t i v e s s u c h a s c o m m e r c i a l p a p e r , s a l e s t a x r e v e n u e b o n d s , t o l l r e v e n u e b o n d s , a n d f e d e r a l l o a n s . " E s t a b l i s h a n d m a i n t a i n r e s e r v e s f o r t o l l o p e r a t i o n s , c a p i t a l i m p r o v e m e n t s , a n d d e b t s e r v i c e i n a c c o r d a n c e w i t h t o l l s u p p o r t e d d e b t a g r e e m e n t s . " A d o p t t o l l r e v e n u e p o l i c i e s t o e s t a b l i s h c o n g e s t i o n p r i c i n g i n o r d e r t o m a x i m i z e t h r o u g h p u t o n t o l l f a c i l i t i e s . " L e v e r a g e a n d p r o t e c t p a s t M e a s u r e A i n v e s t m e n t s i n r a i l w i t h s t a t e a n d f e d e r a l f u n d i n g f o r a d d i t i o n a l r a i l i m p r o v e m e n t s , i n c l u d i n g t h e P e r r i s V a l l e y L i n e . " M a i n t a i n t h e f i n a n c i a l s o f t w a r e s y s t e m t o i n t e g r a t e p r o j e c t a c c o u n t i n g n e e d s a n d i m p r o v e a c c o u n t i n g e f f i c i e n c y . B u d g e t O v e r v i e w T o t a l s o u r c e s ( T a b l e 1 ) a r e b u d g e t e d a t $ 9 1 5 , 2 2 4 , 5 0 0 , w h i c h i s a d e c r e a s e o f 3 3 % o v e r F Y 2 0 1 2 / 1 3 p r o j e c t e d s o u r c e s a n d a 5 1 % d e c r e a s e o v e r t h e F Y 2 0 1 2 / 1 3 r e v i s e d b u d g e t . T o t a l s o u r c e s a r e c o m p r i s e d o f r e v e n u e s o f $ 4 6 7 , 1 4 0 , 6 0 0 , t r a n s f e r s i n o f $ 3 5 4 , 0 8 3 , 9 0 0 , a n d T I F I A l o a n p r o c e e d s o f $ 9 4 , 0 0 0 , 0 0 0 . T h e p r o j e c t e d f u n d b a l a n c e a t J u n e 3 0 , 2 0 1 3 a v a i l a b l e f o r e x p e n d i t u r e s ( e x c l u d i n g r e s e r v e s f o r d e b t s e r v i c e o f $ 1 6 4 , 5 5 9 , 9 0 0 a n d a d v a n c e s r e c e i v a b l e o f $ 3 2 , 8 1 8 , 2 0 0 ) i s $ 9 6 9 , 6 5 2 , 7 0 0 . A c c o r d i n g l y , t o t a l f u n d i n g a v a i l a b l e f o r t h e F Y 2 0 1 3 / 1 4 b u d g e t t o t a l s $ 1 , 8 8 4 , 8 7 7 , 2 0 0 . T a b l e 1 - S o u r c e s F Y 2 0 1 2 - 2 0 1 4 F Y 1 1 / 1 1 F Y 1 1 / 1 3 F Y 1 2 / 1 3 F Y 1 3 / 1 4 D o l l a r P e r c e n t A c t u a l R e v i s e d B u d g e t P r o j e c t e d B u d g e t c h a n g e C h a n g e M e a s u r e A S a l e s T a x $ 1 3 4 , 9 8 4 , 3 0 0 $ 1 4 1 , 0 0 0 , 0 0 0 $ 1 4 1 , 0 0 0 , 0 0 0 $ 1 4 7 , 0 0 0 , 0 0 0 $ 6 , 0 0 0 , 0 0 0 4 % L T F S a l e s T a x 6 6 , 5 5 6 , 7 0 0 6 9 , 5 0 0 , 0 0 0 6 9 , 5 0 0 , 0 0 0 7 2 , 5 0 0 , 0 0 0 3 , 0 0 0 , 0 0 0 4 % S T A S a l e s T a x 1 3 , 4 8 7 , 5 0 0 1 4 , 2 1 2 , 5 0 0 1 4 , 2 1 2 , 5 0 0 1 3 , 2 9 8 , 0 0 0 ( 9 1 4 , 5 0 0 ) - 6 % I n t e r g o v e r n m e n t a l 5 1 , 5 1 6 , 9 0 0 9 3 , 7 5 8 , 4 0 0 6 4 , 8 4 5 , 1 0 0 2 2 3 , 1 5 5 , 7 0 0 1 2 9 , 3 9 7 , 3 0 0 1 3 8 % T U M F R e v e n u e 8 , 1 1 6 , 4 0 0 7 , 5 5 7 , 3 0 0 7 , 2 6 8 , 2 0 0 6 , 7 2 3 , 4 0 0 ( 8 3 3 , 9 0 0 ) - 1 1 % O t h e r R e v e n u e 1 , 4 3 0 , 1 0 0 8 8 2 , 8 0 0 4 9 3 , 5 0 0 5 0 0 , 0 0 0 ( 3 8 2 , 8 0 0 ) - 4 3 % I n v e s t m e n t I n c o m e 4 , 3 0 8 , 3 0 0 7 , 2 6 5 , 9 0 0 4 , 6 4 0 , 3 0 0 3 , 9 6 3 , 5 0 0 ( 3 , 3 0 2 , 4 0 0 ) - 4 5 % O p e r a t i n g T r a n s f e r s I n 1 2 3 , 9 7 7 , 2 0 0 3 2 8 , 1 1 8 , 6 0 0 3 1 8 , 6 8 4 , 0 0 0 3 5 4 , 0 8 3 , 9 0 0 2 5 , 9 6 5 , 3 0 0 8 % D e b t P r o c e e d s 4 0 , 0 0 0 , 0 0 0 1 , 2 2 0 , 1 7 2 , 0 0 0 7 4 5 , 0 0 0 , 0 0 0 9 4 , 0 0 0 , 0 0 0 ( 1 , 1 2 6 , 1 7 2 , 0 0 0 ) - 9 2 % T O T A L S o u r c e s $ 4 4 4 , 3 7 7 , 4 0 0 $ 1 , 8 8 2 , 4 6 7 , 5 0 0 $ 1 , 3 6 5 , 6 4 3 , 6 0 0 $ 9 1 5 , 2 2 4 , 5 0 0 $ ( 9 6 7 , 2 4 3 , 0 0 0 ) - 5 1 % T h r o u g h F Y 2 0 0 5 / 0 6 , t h e C o u n t y h a d e x p e r i e n c e d s i g n i f i c a n t g r o w t h c o r r e s p o n d i n g t o t h e n a t i o n a l e c o n o m i c e x p a n s i o n a n d a m p l i f i e d l o c a l l y b y c o m p e t i t i v e a d v a n t a g e s o f R i v e r s i d e C o u n t y o v e r n e a r b y c o a s t a l c o u n t i e s ( L o s A n g e l e s , O r a n g e a n d S a n D i e g o ) : ( i ) h o u s i n g t h a t w a s ( a n d r e m a i n s ) m o r e a v a i l a b l e a n d a f f o r d a b l e ; a n d ( i i ) p l e n t i f u l c o m m e r c i a l r e a l e s t a t e a n d a v a i l a b l e d e v e l o p m e n t l a n d a t l o w e r r a t e s . M o r e o v e r , b o t h t r a n s p o r t a t i o n a n d c o m m u n i c a t i o n a c c e s s t o e m p l o y m e n t c e n t e r s i n L o s A n g e l e s a n d O r a n g e c o u n t i e s i m p r o v e d . R i v e r s i d e C o u n t y ' s e c o n o m y t h r i v e d , r e f l e c t i n g t h e a r e a ' s c o m p e t i t i v e a d v a n t a g e s o v e r i t s n e i g h b o r i n g c o u n t i e s , l a r g e l y a s a r e s u l t o f t h e C o u n t y ' s c o n t i n u i n g a b i l i t y t o d r a w j o b s , r e s i d e n t s , a n d a f f o r d a b l e h o u s i n g a w a y f r o m t h e L o s A n g e l e s , O r a n g e , a n d S a n D i e g o c o u n t y a r e a s . A s a r e s u l t , t h e C o u n t y e n j o y e d a m o r e d i v e r s i f i e d e m p l o y m e n t a n d c o m m e r c i a l b a s e a n d a n i n c r e a s i n g s h a r e o f t h e r e g i o n a l e c o n o m y . T h e e c o n o m y i n R i v e r s i d e C o u n t y r e f l e c t s t h e p r e v i o u s n a t i o n w i d e r e c e s s i o n , a s w a s e v i d e n c e d b y h i g h u n e m p l o y m e n t ; l o w e r 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 , 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 n d t h e r a t e o f h o m e 6
sales and the median price of single-family residences; and high rates of distressed properties. The impact of the recession was amplified in the Inland Empire (i.e., Riverside and San Bernardino counties} due to its relatively greater growth through 2006 and the relatively lower average income levels when compared to coastal areas. These factors have resulted in fluctuating Measure A and L TF safes tax revenues and flat TUMF fees; however, as noted on Chart 1 the sales tax revenues appear to have stabilized since FY 2009/10. Chart 1 -Commission Sources Trend $800,000,000 $400,000,000 :::.:.: +---··· .............. -----··-----....... -: ----~---~~ !}--_____ _ -·t---------------------·--·---... -;----· ·----\ -----·------··· --···--j-·· \ $500,000,000 !·-------l $300,000,000 ----··········· ---I $200,000,000 +·····--·--~------------· -~ ....... -..--I. . . ~ > S:::::. wef_ •z.:: --'~ $100,000,000 r··-----·-;_: • ~= .»------\, .so J. 'ti "" ~ • ., ~~;.: .t!i!!j··rrm ee m .$1_. I fY 09/10 fY 10/11 FY 11/12 FY 12/13 fY 13/14 -+-Measure A Sales Tax -11-L TF Sales Tax -.&-STA Sales Tax .._TUMF ....,..._Federal, State, Local Revenues -4-0peratingTransfers In _...._Debt Proceeds While economic reports indicate that the national recession ended in 2009 and economic growth has resumed, recovery in the local Inland Empire economy continues to be sluggish in the housing market. The economic outlook for the Commission in FY 2013/14 continues to be encouraging with the stabilization of sales tax revenues; however, the state and federal budget issues continue to affect funding of the Commission's capital projects and programs. Should Measure A and LTF sales tax revenues decline again and the availability of federal and state revenues continues to be uncertain, the timing and scope of the Commission's projects and programs may be impacted. While the Commission's primary revenues are the Measure A and LTF sales taxes, other revenues and financing sources are required to fund the Commission's programs and projects as illustrated in Chart 2. Chart 2-Sources: Major Categories Debt Proceeds\ 10% \ Measure A Sales Tax 16% Operating oran.sters----0% Other Revenue 0% 7 lntPntnvernmenbll
The State Board of Equalization (SBOE) recently provided to cities and other agencies its projections that statewide taxable sales over the next fiscal year will increase 5.45%. However, given the tenuous local economy, the Commission is not basing its estimate of revenues on the SBOE's projection and will continue its conservative projection practices. After taking the state of the local economy and recent optimistic revenue trends into consideration, staff projects that Measure A sales tax revenues of $147,000,000 for FY 2013/14. This is a 4% increase from the FY 2012/13 revised projection of $141,000,000. At midyear the Commission will reassess sales tax revenue projections based on the economy and revenue trends. On behalf of the County, the Commission administers the LTF for public transportation needs, local streets and roads, and bicycle and pedestrian facilities. The majority of l TF funding received by the County and available for allocation is distributed to all public transit operators in the County, and the Commission receives allocations for administration, planning, and programming in addition to funding for rail operations included in the commuter rail Short Range Transit Plan (SRTP). The l TF sales tax revenue received from the State is budgeted at $72,500,000, an increase of 4% from the FY 2012/13 revised projection of $69,500,000. STA funds generated from the statewide sales tax on motor vehicle fuel are allocated by formula by the State Controller to the Commission for allocations to the County's public transit operators; however, these funds have been subject to suspension in past years due to the State's budget issues. The STA transit allocation, which is based on recent State estimates, for FY 2013/14 is $13,298,000. Intergovernmental revenues include reimbursement revenues from federal sources of $97,660,000, state sources of $122,391,300, and local agencies of $3,109,400 for highway and rail capital, rail operations and station maintenance, commuter assistance, and motorist assistance programs as well as planning and programming activities. Reimbursement revenues vary from year to year depending on project activities and funding levels. As a result of an amended Memorandum of Understanding (MOU) with the Western Riverside Council of Governments (WRCOG), the Commission will receive 48.7% of TUMF revenues (as updated by the most recent Nexus study). TUMF represents fees assessed on new residential and commercial development in Western County. FY 2013/14 TUMF fees are expected to remain flat at $6,300,000 to reflect the slow but encouraging signs in the housing market in the Inland Empire, and additional TUMF zone reimbursements of $423,400 are expected for the 74/215 interchange project. Other revenue of $500,000 is projected to decrease 43% from the prior year's budget of $882,800 primarily because of the decline in property management revenues from properties acquired in connection with the SR-91 corridor improvements project. Investment income is anticipated to decrease in FY 2013/14 as a result of lower cash balances primarily due to the increased activity with Perris Valley Line and the 5R-91 corridor improvement projects. Staff continues to actively manage its resources and make appropriate investments to maximize the return to the Commission without sacrificing security and affecting short-term cash requirements. Transfers in of $354,083,900 relate primarily to the transfer of available debt proceeds for highway and regional arterial projects; LTF funding for general administration, planning and programming, rail operations and station maintenance, and grade separation project allocations; approved interfund allocations for specific projects; and debt service requirements from highway, regional arterial, and local streets and roads projects. Debt proceeds consist of the issuance of $94,000,000 in TIFIA loan proceeds related to the SR-91 corridor improvement project. Total uses (Table 2), including transfers out of $354,083,900, are budgeted at $1,212,744,500, an increase of 25% from the prior year budget amount of $970,284,000. Program expenditures and transfers out totaling $1,166,180,400 represent 96% of total budgeted uses in FY 2013/14. Program costs have increased by 43% from $813,841,800 in FY 2012/13. 8
Table 2-Uses FY 2012·2014 FY 11/12 FY 12/13 FY 12/13 FY 13/14 Dollar Percent Actual Revised Budget Projected Budget Change Change Capital Highway, Rail, and Regional Arterials $ 238,856,700 $ 637,362,200 $ 506,342,800 $ 962,980,100 $ 325,617,900 51% Capital local Streets and Roads 40,127,900 42,129,000 42,129,000 43,825,900 1,696,900 4% Commuter Assistance 3,317,600 4,190,100 4,348,700 4,300,700 110,600 3% Debt Service 61,532,600 143,413,000 110,557,200 33,ln,200 (110,235,800) -77% Management Services 17,714,600 13,029,200 11,934,000 13,386,900 357,700 3% Motorist Assistance 4,942,900 6,169,300 6,048,900 6,740,600 571,300 9% Planning and Programming 3,399,900 4,994,100 3,538,600 5,595,500 601,400 12% Public and Specialized Transit 68,068,600 104,443,800 77,742,900 127,663,200 23,219,400 22% Rail Maintenance and Operations 20,202,600 14,553,300 11,549,300 15,074,400 521,100 4% TOTAL Uses $ 458,163,400 $ 970,284,000 $ 774,191,400 $ 1,212,744,500 $ 242,460,500 25% Note: Management Services includes Executive Management, Administration, Legislative Affairs and Communications, and Finance. Capital highway, rail, and regional arterials budgeted uses of $962,980,100 are 51% higher compared to FY 2012/13 due to construction of the Perris Valley line and significant right of way activities and commencement of construction of SR-91 corridor improvement project in addition to transfers out of debt proceeds from capital projects funds to finance 2009 Measure A Western County highway project costs. Debt Service of $33,177,200 has decreased 77% as a result of the retirement of $80 million of outstanding commercial paper notes from sales tax revenue bond proceeds issued in connection with the SR-91 corridor improvement project financing. Commuter Assistance budgeted expenditures of $4,300,700 are 3% higher than FY 2012/13 due to increased expenditures related to projects and operations activities. Management Services expenditures have increased 3% from the FY 2012/13 budget due to information technology equipment upgrades. Motorist Assistance expenditures have increased 9% or $571,300 from the FY 2012/13 budget as a result of increased demand for freeway service patrol services supporting construction projects. Planning and Programming budgeted expenditures of $5,595,500 reflect a 12% increase from the FY 2012/13 budget due to increased projects and operations activities in connection with L TF disbursements for planning and programming and grade separations projects. Public and Specialized Transit budgeted expenditures of $127,663,200 are 22% higher than FY 2012/13 due to increased transit capital expenditures for public transit. The 4% increase in Rail Maintenance and Operation's budgeted expenditures of $15,079,400 is primarily due to additional consultant work needed to perform planning and modeling for rail projects including the SR-91/PVL expansion and Coachella Valley Service. Total uses included in the FY 2013/14 budget by major categories are illustrated in Chart 3. Chart 3-Uses: Major Categories Public and Specialized Planning and Rail Maintenance and Motorist Assistance l'Yo Management;)4!Mces_ 1% Commuter Assistance 0% Capitall..o<:al Streets and Roads 4% 9
Commission Personnel Final salary information has not been included in the budget. Action was taken by the Commission's Executive Committee to approve a revised salary structure for Commission employees; however, a full review of the issue has been requested by a member of the Executive Committee. The new structure would have included actions to require employees to begin paying their full share of pension costs over a three-year period with a corresponding salary increase. Per the Commission's Administrative Code, a Commissioner may request a review of any action by the Executive Committee at its next regular meeting. Currently, the personnel information in the draft budget Executive Summary assumes no salary increases. With that assumption, the Commission's salary and benefits total $6,998,000 for FY 2013/14. This represents an increase of $26,900 over the FY 2012/13 budget of $6,971,100 (Chart 4). The slight increase is a result of mandated increases from PERS and higher costs for insurance premiums. Chart 4 -Salary and Benefits Costs: Five Year Comparison $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $-FY09/10 FY 10/11 FY 11/12 FY 12/13 FY 13/14. Management continues to be firmly committed to the intent of the Commission's enabling legislation that called for a small staff. Staff will continue to be provided the tools needed to ensure an efficient and productive work environment. However, it must be recognized that small is not viewed in an absolute context; it is relative to the required tasks to be performed and the demands to be met. Table 3-Staff Summary by Department FY 2012-2014 FY 11/12 FY 12/13 FY 13/14 Executive Management 0.3 0.4 0.3 Administration 5.3 4.6 4.5 Legislative Affairs and Communications 1.9 2.0 2.4 Finance 7.0 6.6 6.9 Planning and Programming 4.8 4.8 4.3 Rail Maintenance and Operations 3.2 3.3 3.4 Public and Specialized Transit 2.5 2.4 2.4 Commuter Assistance 1.6 1.6 1.8 Motorist Assistance 1.2 1.2 1.2 Capital Project Development and Delivery 12.2 15.1 14.8 TOTAL 40.0 42.0 42.0 10
The Commission provides a comprehensive package of benefits to all permanent, salaried employees. The package includes: health, dental, vision, and life insurance, short and long-term disability, workers' compensation, tuition assistance, sick and vacation leave, retirement benefits in the form of participation in California Public Employees Retirement System (CaiPERS), postretirement health care, deferred compensation, and employee assistance program. The compensation components are shown in Chart 5. Chart 5-Personnel Salary and Benefits Other Fringes Department Initiatives The preparation of each department's budget was based on key assumptions, accomplishments in FY 2012/13, major initiatives for FY 2013/14, and department goals and related objectives. Following are the key initiatives and summary of expenditures for each department (Tables 4 through 13). Executive Management • Continue project development and delivery as the key Measure A priority. • Initiate construction on Riverside County's largest transportation projects, the SR-91 corridor improvement project. • Advance public transit with the construction of the Perris Valley line making this Riverside County's first major rail expansion in more than 14 years. • Advocate for state investments in transportation and approval of a federal transportation bill to fund needed transportation priorities in Riverside County and stimulate the local economy. • Maintain regional cooperation and collaboration as a significant effort consistent with the philosophy and mission of the Commission. • Enhance external communications with media, business and civic groups, and the community. • Maintain an effective mid-sized transportation agency with a small and dedicated staff. Table 4 -Executive Management FY 11/12 FY12/13 FY 12/13 FY 13/14 Dollar Percent Actual Revised Budget Projected Budget Change Olange Personnel $ 105,200 $ 120,600 $ 83,000 $ 95,600 $ (25,000) ·21% Professional 69,900 105,000 101,100 105,000 0% Support 39,600 57,600 53.700 57,200 (400) -1% TOTAL $ 214,700 $ 283,200 $ 237,800 $ 257,800 $ (25,400) -9% 11
Administration • Provide high quality support services to the Commission and to internal and external customers. • Continue to strengthen the electronic records management system. • Continue to provide timely communications to Commissioners with continued emphasis on the utilization of electronic mail. • Continue to update technology to streamline processes and provide easier access to Commission records. • Support and develop a motivated workforce with a framework of activities and practices that comply with employment laws and regulations. Table 5-Administration FY 11/12 FY 12/13 FY 12/13 FY 13/14 Dollar Percent Actual Revised Budget Projected Budget Change Change·. Personnel $ 434,000 $ 460,300 $ 398,200 $ 474,600 $ 14,300 3% Professional 239,000 260,700 141,000 207,600 {53,100) -20% Support 547,700 641,200 601,800 641,200 0% Capital Outlay 17,400 140,000 55,000 385,000 245,000 175% Debt Sel\'ice 25,200 N/A TOTAL $ 1,263,300 $ 1,502,200 $ 1,196,000 $ 1,708,400 $ 206,200 14% Legislative Affairs and Communications • Continue efforts to protect and seek greater state and federal investment in transportation infrastructure and goods movement. • Develop effective partnerships with transportation providers to communicate a unified message to Congress regarding mobility needs. • Advocate positions in the State Legislature and in Congress that advance the County's transportation interests, especially those related to the implementation of the SR-91 corridor improvement project. • Continue a leadership role in formulating a countywide direction on federal transportation policies. • Take a leadership role on the modernization of CEQA. • Continue to develop a broad public information program regarding the Commission's responsibilities and accomplishments through a variety of media formats and presentation opportunities. • Continue to place an emphasis on providing proactive public communications support related to major project development efforts. • Conduct a concerted outreach effort to new federal and state representatives on local transportation issues. • Provide new Commissioner orientation meetings and other continuing education opportunities for Commissioners. Table 6-Legislative Affairs and Communications FY 11/12 rf12/13 rf 12/13 FY 13/14 Dollar Percent Actual Revised Budget Projected Budget Change Change Personnel $ 347,100 $ 395,000 s 351,200 $ 484,900 $ 89,900 23% Professional 425,400 661,300 456,200 552,500 (108,800) -16% Support 155,400 188,000 145,800 187,700 (300) 0% TOTAL $ 927,900 $ 1,244,300 $ 953,200 $ 1,225,100 $ (19,200) -2% Finance • Continue appropriate uses of long-and short-term financing to advance 2009 Measure A projects of the Commission and the Coachella Valley Association of Governments (CVAG). • Apply the sales tax revenue forecast update to develop a financing plan to support the Western Riverside County Delivery Plan and CVAG highway and regional arterial projects. 12
" C o n t i n u e t o k e e p a b r e a s t o f 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 ( G A S B ) t e c h n i c a l a c t i v i t i e s a f f e c t i n g t h e C o m m i s s i o n ' s a c c o u n t i n g a n d f i n a n c i a l r e p o r t i n g a c t i v i t i e s a n d c o n s i d e r e a r l y i m p l e m e n t a t i o n o f n e w p r o n o u n c e m e n t s . " C o n t i n u e t o s t r e n g t h e n t h e e n t e r p r i s e r e s o u r c e p l a n n i n g ( E R P ) s y s t e m t o b e n e f i t a l l s t a f f i n t h e m a n a g e m e n t o f a c c o u n t i n g a n d p r o j e c t i n f o r m a t i o n a n d a u t o m a t i o n o f a p a p e r l e s s w o r k f l o w s y s t e m . " C o n t i n u e t o i m p l e m e n t a c e n t r a l i z e d p r o c u r e m e n t s p r o c e s s i n o r d e r t o s t r e n g t h e n c o n t r o l s a n d e n s u r e c o n s i s t e n c y i n t h e a p p l i c a t i o n o f p r o c u r e m e n t p o l i c i e s a n d p r o c e d u r e s a n d a d h e r e n c e t o a p p l i c a b l e l a w s a n d r e g u l a t i o n s . " C o n d u c t o u t r e a c h a c t i v i t i e s t o e n c o u r a g e D B E a n d S B E p a r t i c i p a t i o n i n v a r i o u s c o n t r a c t s . T a b l e 7 - F i n a n c e F Y 1 1 / 1 2 F Y 1 2 / 1 3 F Y 1 2 / 1 3 ' F Y 1 3 / 1 4 D o l l a r P e r c e n t A c t u a l R e v i s e d B u d g e t P r o j e c t e d B u d g e t C h a n g e C h a n g e P e r s o n n e l $ 8 3 2 , 6 0 0 $ 8 2 8 , 6 0 0 $ 7 7 4 , 0 0 0 $ 8 2 3 , 2 0 0 $ ( 5 , 4 0 0 ) - 1 % P r o f e s s i o n a l 3 , 9 7 7 , 8 0 0 3 , 5 1 4 , 1 0 0 3 , 1 1 9 , 9 0 0 3 , 7 0 1 , 7 0 0 1 8 7 , 6 0 0 5 % S u p p o r t 5 1 6 , 5 0 0 6 5 6 , 8 0 0 6 4 7 , 6 0 0 6 6 4 , 7 0 0 7 , 9 0 0 1 % C a p i t a l O u t l a y 7 , 0 0 0 5 , 5 0 0 6 , 0 0 0 6 , 0 0 0 N / A T r a n s f e r s O u t 1 0 , 0 0 0 , 0 0 0 5 , 0 0 0 , 0 0 0 5 , 0 0 0 , 0 0 0 5 , 0 0 0 , 0 0 0 0 % T O T A L $ 1 5 , 3 3 3 , 9 0 0 $ 9 , 9 9 9 , 5 0 0 $ 9 , 5 4 7 , 0 0 0 $ 1 0 , 1 9 5 , 6 0 0 $ 1 9 6 , 1 0 0 2 % P l a n n i n g a n d P r o g r a m m i n g " M o n i t o r f u n d i n g a u t h o r i t y a n d r e s p o n s i b i l i t y r e l a t e d t o t h e S t a t e T r a n s p o r t a t i o n I m p r o v e m e n t P r o g r a m ( S T I P ) a n d i m p a c t s o n t h e S T I P c a u s e d b y t h e s t a t e b u d g e t i s s u e s . " E n s u r e S T I P a n d P r o p o s i t i o n 1 8 f u n d e d p r o j e c t s a r e a d m i n i s t e r e d a n d i m p l e m e n t e d c o n s i s t e n t w i t h C a l i f o r n i a T r a n s p o r t a t i o n C o m m i s s i o n ( C T C ) a n d C a l i f o r n i a D e p a r t m e n t o f T r a n s p o r t a t i o n ( C a l t r a n s ) p o l i c i e s . " C o n t i n u e t o s t r a t e g i c a l l y p r o g r a m p r o j e c t s a n d o b l i g a t e f u n d s i n a n e x p e d i t i o u s m a n n e r f o r t h e m a x i m u m u s e o f a l l a v a i l a b l e f u n d i n g , i n c l u d i n g m o n i t o r i n g t h e u s e o f s u c h f u n d i n g t o p r e v e n t f u n d s f r o m l a p s i n g . " F o c u s o n i n t e r r e g i o n a l c o n c e r n s a n d m a i n t a i n e f f e c t i v e w o r k i n g r e l a t i o n s h i p s i n v o l v i n g v a r i o u s m u l t i - c o u n t y t r a n s p o r t a t i o n i s s u e s , i n c l u d i n g g o o d s m o v e m e n t . " C o o r d i n a t e p l a n n i n g e f f o r t s w i t h r e g i o n a l a n d l o c a l a g e n c i e s r e l a t i n g t o t h e d e v e l o p m e n t o f 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 s ( R T P ) a n d g r e e n h o u s e g a s r e d u c t i o n i m p l e m e n t a t i o n g u i d e l i n e s . " S e c u r e f u n d i n g t h r o u g h t h e f e d e r a l t r a n s p o r t a t i o n b i l l f o r g o o d s m o v e m e n t - r e l a t e d n e e d s . " M o n i t o r a n d t r a c k t h e T U M F r e g i o n a l a r t e r i a l p r o j e c t s . " W o r k c o o p e r a t i v e l y w i t h m e m b e r a g e n c i e s t o c o n t i n u e t h e w o r k e f f o r t s o n t h e n e w C o m m u n i t y 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 c e s s ( C E T A P ) c o r r i d o r s . " C o n t i n u e t h e C o n g e s t i o n M a n a g e m e n t P r o g r a m ( C M P ) u p d a t e a n d t r a f f i c m o n i t o r i n g a l o n g u r b a n a n d r u r a l h i g h w a y s y s t e m s . " A d m i n i s t e r t h e S B 8 2 1 B i c y c l e a n d P e d e s t r i a n F a c i l i t i e s P r o g r a m . " M o n i t o r t h e P o r t o f L o s A n g e l e s a n d P o r t o f L o n g B e a c h ' s ( P o r t s ) p r o j e c t s f o r i m p a c t s o n R i v e r s i d e C o u n t y . T a b l e 8 - P l a n n i n g a n d P r o g r a m m i n g P e r s o n n e l P r o f e s s i o n a l S u p p o r t P r o j e c t s a n d O p e r a t i o n s C a p i t a l O u t l a y T O T A l $ $ F Y 1 1 / 1 2 A c t u a l 9 0 4 , 8 0 0 $ 1 3 2 , 9 0 0 1 7 , 4 0 0 2 , 3 2 3 , 6 0 0 2 1 , 2 0 0 3 , 3 9 9 , 9 0 0 $ F Y 1 2 / 1 3 R e v i s e d B u d g e t 8 3 5 , 8 0 0 $ 3 6 2 , 8 0 0 2 4 , 3 0 0 3 , 7 7 1 , 2 0 0 4 , 9 9 4 , 1 0 0 $ 1 3 F Y 1 2 / 1 3 F Y 1 3 / 1 4 D o l l a r P e r c e n t P r o j e c t e d B u d g e t C h a n g e C h a n g e 9 5 9 , 2 0 0 $ 7 8 3 , 2 0 0 $ ( 5 2 , 6 0 0 ) - 6 % 1 9 8 , 0 0 0 4 8 7 , 5 0 0 1 2 4 , 7 0 0 3 4 % 1 6 , 4 0 0 2 3 , 3 0 0 ( 1 , 0 0 0 ) - 4 % 2 , 3 6 5 , 0 0 0 4 , 3 0 1 , 5 0 0 5 3 0 , 3 0 0 1 4 % N / A 3 , 5 3 8 , 6 0 0 $ 5 , 5 9 5 , 5 0 0 $ 6 0 1 , 4 0 0 1 2 %
Rail Maintenance and Operations • • • • • Continue active participation in governance and operations of the Metrolink commuter rail system . Continue the planning and implementation of capital improvements at the commuter rail stations in Riverside County, including the Perris Valley line, security and rehabilitation projects, and parking requirements. Continue to support activities related to the Perris Valley line project and evaluate its operational impact . Establish best approach to build, maintain, and operate cost effective and environmentally sustainable facilities that meet the public's transportation needs. Continue coordination with CVAG, Amtrak and the State to focus attention on the creation of intercity passenger rail service between Coachella Valley, the Pass Area, Riverside, and the Los Angeles basin. Table 9 -Rail Maintenance and Operations FY11/12 FY12/13 FY 12/13 FY 13/14 Dollar Percent Actual Revised Budget Projected Budget Change Change Personnel $ 488,700 $ 496,700 $ 613,200 $ 530,300 $ 33,600 7% Professional 206,000 421,000 256,900 488,000 67,000 16% Support 1,260,100 1,735,600 1,440,900 1,668,700 (66,900) -4% Projects and Operations 18,225,900 11,834,300 9,181,900 12,339,200 504,900 4% Capital Outlay 21,900 65,700 56,400 48,200 (17,500) ·27% TOTAl $ 20,202,600 $ 14,553,300 $ 11,549,300 $ 15,074,400 $ 521,100 4% Public and Specialized Transit • • • • • • Support innovative programs that provide transit assistance in hard to serve rural areas or for riders having very special transit needs and monitor funding of these programs. Complete the second year of specialized transit funding allocations related to the 2011 universal call for projects and continue to monitor performance. Continue long-range planning activities to ensure that anticipated revenues are in line with projected levels of service by transit operators. Monitor public and specialized transit operators' performance through the TransTrack program . Provide availability for local matching funds to Western County applicants seeking FTA Section 5310 federal capital grants. Coordinate with operators on major capital purchases and investments into new rolling stock and other system improvements in order to maintain a viable on-hand reserve. Table 10-Public and Specialized Transit FY 11/12 FY 12/13 FY 12/13 FY 13/14 Dollar Percent Actual Revised Budget Projected Budget Change Change Personnel $ 326,600 $ 326,200 $ 296,100 $ 339,300 $ 13,100 4% Professional 146,100 291,500 274,600 188,500 (103,000) -35% Support 8,400 18,900 13,500 24,500 5,600 30% Projects and Operations 52,677,000 84,174,600 58,822,300 113,144,800 28,970,200 34% Transfers Out 14,910,500 19,632,600 18,336,400 13,966,100 (5,666,500) ·29% TOTAl $ 68,068,600 $ 104,443,800 $ 77,742,900 s 127,663,200 $ 23,219.400 22% Commuter Assistance • Improve the suite of services and outreach to rideshare participants and employer partners, including personalized information and electronic access and distribution. • • • • Maintain and grow employer partnerships through value-added services and tools for ridesharing programs . Maintain and operate a four-county ridematching database system with partner agencies . Maintain long-term partnership with San Bernardino Associated Governments (SANBAG) to manage and implement a "sister" Commuter Assistance program for residents and employers in San Bernardino County. Optimize park and ride facilities to support car/vanpool/buspool arrangements and facilitate transit connections. 14
Table 11-Commuter Assistance FYll/12 FY12/13 FY1l/13 fY 13/14 Dollar Percent Actual Revised Budget Projected Bu"et Olange Change Personnel $ 216,000 $ 218,900 $ 375.200 $ 277,fiXJ $ 58,700 27% Professional 588,000 650,300 754,800 617,800 (32,500) -5% Support 366,900 529,200 469,100 483,300 (45,900) -9% Projects and Operations 1,986,700 2,623,400 2,588,300 2,802,800 179,400 7% Capital Outlay 17,000 10,000 7,000 (10,000) -59% Transfers Out 160,000 151,300 151,300 112,200 (39,100) -26% TOTAL $ 3,317,600 $ 4,190,100 $ 4,348,700 $ 4,300,700 $ 110,600 3% Motorist Assistance • Assess opportunities for efficiency related to the call box program operations. • Maintain a high benefit-to-cost ratio related to the performance of the FSP program. • Operate and maintain the IE511 system in accordance with national 511 implementation standards in partnership with SANBAG. • Enhance the IE511 with more personalized traffic information services. • Utilize the opportunity to enhance coordination between CHP and Caltrans on traveler information. Table 12-Motorist Assistance fY 11/12 fY 12/13 FY 12/13 fY 13/14 Dollar Percent Actual Revised Budget Projected Budget Olange Change Personnel $ 149,200 s 175,900 $ 175,900 $ 172,100 $ (3,800) -2% Professional 789,600 717,500 736,500 766,500 49,000 7% Support 515,400 884,600 880,200 875,900 (8,700) -1% Projects and Operations 2,392,100 3,070,000 2,935,000 3,635,000 565,000 18% Transfers Out 1,096,600 1,321,300 1,321,300 1,291,100 (30,200) -2% TOTAL $ 4,942,900 $ 6,169,300 $ .6,048,900 $ 6,740,600 $ 571,300 9% Capital Project Development and Delivery • Continue project development, right of way, and construction activities on remaining 1989 Measure A projects including SR-74 curve widening, SR-91 high occupancy vehicle (HOV) lanes/Adams Street to 60/91/215 interchange, and 60/215 East Junction HOV lane connectors. • Continue project activities on the 1-215 bi-county highway and Perris Valley Line rail projects, which were included in both the 1989 Measure A and 2009 Measure A programs. • Continue project work on the Western Riverside County Delivery Plan projects, including the 91/71 connectors; the SR-91, 1-15, and 1-215 corridor mobility improvement projects; SR-79 realignment; and Mid County Parkway. • Provide Western County TUMF funding and support to local jurisdictions for regional arterial project engineering, right of way acquisition, and construction. • Provide 2009 Measure A funding to the incorporated cities and the County for local streets and roads maintenance, repair, and construction. • Provide advance funding and support of 2009 Measure A highway and regional arterial projects. • Develop strategies to implement alternative financing structures including public toll roads. • Maintain a right of way acquisition and management program in support of capital projects. • Manage right of way acquisition in the most cost effective manner and within project schedules, while adhering to federal and state regulations. • Maintain and manage the access, use, safety, and security of Commission-owned properties including commuter rail stations, properties in acquisition process, and income-generating properties. 15
Table 13-Capital Project Development and Delivery FY 11/12 FY 12/13 FY 12/13 FY 13/14 Dollar Percent Actual Revised Budget Projected Budget Change Change Personnel $ 2,268,400 $ 3,113.100 $ 2,934.200 $ 3,017,200 $ (95,900) -3% Professional 5,057,500 7,692,500 7,316,700 18,176,600 10,484,100 136% Support 300,700 597,100 302,900 557,000 (40,100) -7% Projects and Operations 173,405,700 365,850,100 243,964,700 650,990,700 285,140,600 78% Capital Outlay 142,200 225,000 78,300 350,000 125,000 56% Debt Service 61,507,400 143,413,000 110,557,200 33,177,200 (110,235(800) -77% Transfers Out 97,810.100 302,013,400 293,875,000 333,714,500 31,701,100 10% TOTAL $ 340,492,000 $ 822,904,200 $ 659,029,000 $ 1,039,983,200 $ 217,079,000 26% Fund Balances The total fund balance as of June 30, 2013 is projected at $1,167,030,800. The Commission's budgeted activities for FY 2013/14 are expected to result in a $297,520,000 decrease of total fund balance at June 30, 2014 to $869,510,800. The primary cause of the decrease is related to the completion of financing activities in FY 2012/13 and the commencement of construction in FY 2013/14 for the SR-91 corridor improvement project. Table 14 presents the components of fund balance by governmental fund type and program at June 30, 2014. Table 14-Projected Fund Balances by Governmental Fund Type and Program at June 30, 2014 Genenlfund $8,686,1m Management Services Planning and Programming Rail Maintenance and Operations Budget Summary ai"Verside County-TranspoilatiOn Commission $86?.510,800 Special R~Que Funds $406.91J;7oo $4,515,700 Measure A Western County: 1,745,100 Bond Financing 1,415,200 Commuter Assistance Economic Development Highways local Streets and Roads New Corridors Public and Specialized Transit Rail Regional Arterials Measure A Coachella Valley: Highways and Regional Arterial local Streets and Roads Specialized Transit Measure A Palo Verde Valley local Streets and Roads Motorist Assistance State Transit Assistance local Transportation Fund TUMF: CETAP Regional Arterials $4,673,200 13,700,400 3,737,800 101,185,000 1,100 S4,310,400 7,832,000 37,903,200 26,143,000 4,287,100 1,600 . 1,361,200 600 5,236,000 37,094,600 84,773,000 17,042,400 7,629,100 ca~1 Projecis Funds ·"' . $313,529,700 Highways $ 313,519,700 li~j~,F.~ $1~;383.~~ The overall budget for FY 2013/14 is presented in Table 15 by summarized line items, Table 16 by operating and capital classifications, and Table 17 by governmental fund type. Highway, rail, and regional arterial program expenditures by project are summarized in Table 18. 16
Table 15-Budget Comparative by Summarized line Item FY 2012-2014 FY 11/12 FY 12/13 FY 12/13 FY 13/14 Dollar Percent Actual Revised Budget Projected Revenues Budil!t Change Change Measure A Sales Tax $ 134,984,300 $ 141,000,000 s 141,000,000 s 147,000,000 s 6,000,000 4% l TF Sales Tax 66,556,700 69,500,000 69,500,000 72,500,000 3,000,000 4% STA Sales Tax 13,487,500 14,212,500 14,212,500 13,298,000 (914,500) -6% Federal Reimbursements 28,097,000 73,151,900 40,949,200 97,655,000 24,503,100 33% State Reimbursements 21,411,300 17,917,800 21,306,500 122,391,300 104,473,500 583% Local Reimbursements 2,008,600 2,688,700 2,589,400 3,109,400 420,700 16% TUMF Revenue 8,116,400 7,557,300 7,268,200 6,723,400 (833,900) -11% Other Revenue 1,430,100 882,800 493,500 500,000 (382,800) -43% Investment Income 4,308,300 7,265,900 4,640,300 3,%3,500 (3,302,400) -45% TOTAL Revenues 280,400,200 334,176,900 301,959,600 467,140,600 132,963,700 40% Expenditures Personnel Salary and Benefits 6,072,600 6,971,100 6,960,200 6,998,000 26,900 0% Professional and Support Professional Services 11,632,200 14,676,700 13,355,700 25,291,700 10,61S,OOO 72% Support Costs 3,728.100 5,333.300 4,571.900 5.183,500 {149,800) -3% TOTAL Professional and Support Costs 15,360,300 20,010,000 17,927,600 30,475,200 10,465,200 52% Projects and Operations Program Operations -General 11,194,200 18,880,500 14,255,600 20,107,100 1,226,600 6% Engineering 21,366,500 27,932,000 16,580,400 20,299,000 {7,633,000) -27% Construction 27,451,200 125,994,100 61,617,400 238,509,400 112,515,300 89% Design Build 16,285,700 29,050,000 29,050,000 192,700,000 163,650,000 563% Right of Way/Land 53,728,100 112,246,800 66,725,200 116,438,800 4,192,000 4% Operating and Capital Disbursements 71,658,200 97,835,800 68,779,200 129,544,800 31,709,000 32% Special Studies 236,500 800,000 320,000 789,000 {11,000) -1% local Streets and Roads 40,127,900 42,129,000 42,129,000 43,825,900 1,696,900 4% Regional Arterials 8,962,700 16,455,400 20,400,400 25,000,000 8,544,600 52% TOTAL Projects and Operations 251,011,000 471,323,600 319,857,200 787,214,000 315,890,400 67% Debt Service Principal Payments 46,523,900 126,800,000 86,800,000 7,100,000 (119,700,000) -94% Interest Payments 15,008,700 16,613,000 16,457,200 26,077,200 9,464,200 57% Cost of Issuance 7,300,000 N/A TOTAL Debt Service 61,532,600 143,413,000 110,557,200 33,177,200 (110,235,800) -77% Capital Outlay 209 .. 700 447.700 205,200 796,200 348,500 78% TOTAL Expenditures 334,186.200 642,165,400 455,507,400 858,660,600 216,495.200 34% Excess {deficiency) of Revenues over (under) Expenditures (53,786,000) (307,988,500) (153,547,800) (391,520,000) (83,531,500) 27% Other Financing Sources (Uses) Transfers In 123,977,200 328,118,600 318,684,000 354,083,900 25,965,300 8% Transfers Out (123,977,200) (328,118,600) (318,684,000) (354,083,900) (25,965,300) 8% Debt Proceeds 40,000,000 1,220,172,000 745,000,000 (1,220,172,000) -100% TIFIA Loan Proceeds 94.000.000 94,000,000 N/A Net Financing Sources (Uses) 40,000,000 1,220,172,000 745,000,000 94,000,000 (1,126,172,000) ·92% Excess (deficiency) of Revenues over (under) Expenditures and Other Financing Sources (Uses) (13,786,000) 912,183,500 591,452,200 (297,520,000) (1,209, 703,500) -133% Beginning Fund Balance 589,364,600 575,578,600 575,578,600 1,167,030,800 591,452,200 103% ENDING FUND BALANCE s 575,578,600 $ 1,487,762,100 $ 1,167,030,800 $ 869,510,800 $ (618,251,300) -42% 17
Table 16 -Operating and Capital Budget FY 2013/14 FY 13/14 FY 13/14 FY 13/14 Operating Budget Capital Budget TOTAL Budget Revenues Measure A Sales Tax $ 14,018,000 $ 132,982,000 $ 147,000,000 LTFSalesTax 72,500,000 72,500,000 STA Sales Tax 13,298,000 13,298,000 Federal Reimbursements 751,400 96,903,600 97,655,000 State Reimbursements 4,844,000 117,547,300 122,391,300 Local Reimbursements 2,653,400 456,000 3,109,400 TUMF Revenue 6,723,400 6,723,400 Other Revenue 500,000 500,000 Investment Income 395,700 3,567,800 3,963,500 TOTAL Revenues 108,460,500 358,680,100 467,140,600 Expenditures Personnel Salary and Benefits 3,973,200 3,024,800 6,998,000 Professional and Support Professional Services 4,416,900 20,874,800 25,291,700 Support Costs 4,604,500 579,000 5,183,500 TOTAL Professional and Support Costs 9,021,400 21,453,800 30,475,200 Projects and Operations Program Operations -General 7,909,500 12,197,600 20,107,100 Engineering 5,000 20,294,000 20,299,000 Construction 238,509,400 238,509,400 Design Build 192,700,000 192,700,000 Right of Way and Land 116,438,800 116,438,800 Operating and Capital Disbursements 127,544,800 2,000,000 129,544;800 Special Studies 764,000 25,000 789,000 Local Streets and Roads 43,825,900 43,825,900 Regional Arterials 25,000,000 25,000,000 TOTAL Projects and Operations 136,223,300 650,990,700 787,214,000 Debt Service Principal Payments 7,100,000 7,100,000 Interest Payments 26,077,200 26,077,200 TOTAL Debt Service 33,177,200 33,177,200 Capital Outlay 446,200 350,000 796,200 TOTAL Expenditures 149,664,100 708,996,500 858,660,600 Excess (defiCiency) of Revenues over (under) Expenditures (41,203,600) (350,316,400) (391,520,000) Other Financing Sources (Uses) Transfers In 16,837,500 337,246,400 354,083,900 Transfers Out (15,369,400) {338, 714,500) (354,083,900) TIFIA loan Proceeds 94,000,000 94,000,000 Net Financing Sources (Uses) 1,468,100 92,531,900 94,000,000 Excess (deficiency) of Revenues over (under} Expenditures and Other Financing Sources (Uses} (39,735,500) (25 7, 784,500) (297,520,000) Beginning Fund Balance 198,418,700 968,612,100 1,167,030,800 ENDING FUND BALANCE $ 158,683,200 $ 710,827,600 $ 869,510,800 18
Table 17 -Budget by Governmental Fund Type FY 2013/14 FY 13/14 General Fund Special Revenue Capital Projects Debt Service TOTAL Budget Revenues Measure A Sales Tax $ 2,800,000 $ 144,200,000 $ $ $ 14 7 ,000, 000 LTF Sales Tax 72,500,000 72,500,000 STA Sales Tax 13,298,000 13,298,000 Federal Reimbursements 25,000 94,886,000 2,744,000 97,655,000 State Reimbursements 664,000 121,727,300 122,391,300 Local Reimbursements 379,800 2,729,600 3,109,400 TUMF Revenue 6,723,400 6,723,400 Other Revenue 500,000 500,000 Investment Income 21,700 1,014,600 1,882,200 1,045,000 3,963,500 TOTAL Revenues 3,890,500 457,578,900 1,882,200 3,789,000 467,140,600 Expenditures Personnel Salary and Benefits 3,413,800 3,584,200 6,998,000 Professional and Support Professional Services 2,924,100 20,331,200 1,248,100 788,300 25,291,700 Support Costs 3,233,200 1,950,300 5,183,500 TOTAL Professional and Support Costs 6,157,300 22,281,500 1,248,100 788,300 30,475,200 Projects and Operations Program Operations-General 1,471,700 18,635,400 20,107,100 Engineering 5,000 20,294,000 20,299,000 Construction 238,509,400 -238,509,400 Design Build 192,700,000 192)00,000 Right of Way/Land 116,438,800 116.~38,800 Operating and Capital Disbursements 14,400,000 115,144,800 -129,544,800 Special Studies 764,000 25,000 --789,000 Local Streets and Roads 43,825,900 43,825,900 Regional Arterials 25,000,000 25,000,000 TOTAL Projects and Operations 16,640,700 770,573,300 787,214,000 Debt Service Principal Payments 7,100,000 7,100,000 Interest Payments 26,077,200 26,077,200 TOTAL Debt Service 33,177,200 33,177,200 Capital Outlay 439,200 357,000 796,200 TOTAL Expenditures 26,651,000 796,796,000 1,248,100 33,965,500 858,660,600 Excess (deficiency) of Revenues over (under) Expenditures (22,760,500) (339,217,100} 634,100 (30,176,500} (391,520,000) Other Financing Sources (Uses) Transfers In 14,887,500 323,196,400 16,000,000 354,083,900 Transfers Out (66,066,100} (278,017,800} (10,000,000} (354,083,9oo} TIFIA Loan Proceeds 94,000,000 94,000.000 Net Financing Sources (Uses} 14,887,500 257,130,300 ( 184,017,800} 6,000,000 94,000,000 Excess (deficiency} of Revenues over (under) Expenditures and Other Financing Sources (Uses) (7 ,873,000) (82,086,800) (183,383, 70D} (24,176,500} (297,520,000} Beginning Fund Balance 16,559,000 488,998,500 496,913,400 164,559,900 1.167,030,800 ENDING FUND BALANCE s 8,686,000 s 406,911,700 s 313,529,700 $ 140,383,400 s 869,510,800 19
Table 18-Highway, Regional Arterial, and Rail Programs FY 2013/14 Descrlpt,on Proj~cts and Operations Bechtel Program Management SCRRA Program Management TOTAL PROJECTS-GENERAL Highway Engineering 60/215 East Junction HOV Lanes Connector 91/71 Connectors 1-l.S Corridor Improvements 1-215 Corridor Improvement Southbound Connector Mid County Parkway SR-91 Corridor Improvements SR-91 HOV Lanes/Adams Street to 60/91/215 Interchange General SUBTOTAL HIGHWAY ENGINEERING Regional Arterial Engineering Various Western County TUMF Regional Arterial Projects, Including SR-79 realignment Rail Engineedng CCTV Operations Center Station Downtown Station SUBTOTAL RAIL ENGINEERING TOTAL HIGHWAY, REGIONAL ARTERIAL, AND RAIL ENGINEERING Highway Construction SR-60/Valley Way Interchange 60/215 East Junction HOV lane Connect:ors 74/215 Interchange 1-215 Corridor Improvements (Central Segments)/1-15 to Nuevo Road 1-215/Bialne Street to Martin Luther King Boulevard Widening 1-15/Los Alamos Road Bridge Replacement SR-74 Curve Widening SR-91 Corridor Improvements SR-91/La Sierra Interchange SR-91/HOV Mary Street to 7th Street SUBTOTAL HIGHWAY CONSTRUCTION Reglonal Arterial Construction Various Western County TUMF Regional Arterial Projects Rail Construction Riverside Downtown Pedestrian ~mprovements CCTV Operations Center Station Rehabilitation Perris Valley Line and Other Rail Projects North Main Corona Station Parking Structure Perris Multlmodal Facility SUBTOTAL RAIL CONSTRUCTION TOTAL HIGHWAY, REGIONAL ARTERIAL, AND RAIL CONSTRUCTION Highway Design Build SR-91 Corridor Improvements TOTAL HIGHWAY DESIGN BUILD Highway Right of Way and Land 74/215 Interchange 60/215 East Junction HOV Lane Connectors 1-215 Corridor Improvement (Central Segment)/Scott Road to Nuevo Road Mid County Parkway SR-74 Curve Widening SR-74/I-1S to 7th Street 91/71 Connectors SR-91 Corridor Improvements SR-91 HOV Lanes/Adams Street to 60/91/215 Interchange General SUBTOTAL HIGHWAY RIGHT OF WAY AND LAND Regional Arterial Right of Way and Land Various West~rn County TUMF Regional Arterial Projects Rail Right of Way and land Perris Multlmodal Facility Perris Valley Line and Other Rail Projects General. SUBTOTAL RAIL RIGHT OF WAY AND LAND TOTAL HIGHWAY, REGIONAL ARTERIAL, AND RAIL RIGHT OF WAY AND LAND GRAND TOTAL HIGHWAY, REGIONAL ARTERIAL, AND RAIL PROGRAMS 20 $ 9,200,000 1,200,000 $ 10,400,000 $ 150,000 4,600,000 7,000,000 950,000 2,550,000 100,000 32,000 100,000 15,482,000 4,612,000 200,000 5,000 205,000 $ 20,299"000 $ 905,000 750,000 47,200,000 2,057,300 900,000 3,401,000 3,800,000 33,000 150,000 59,196,300 41,484,100 1,152,000 1,150,000 2,260,000 133,197,000 20,000 50,000 137,829,000 $ 238,509,400 $ 192.700,000 $ -1.92;700.000 $ 30,000 5,000 730,000 6,182,000 310,000 30,000 3,335,000 87,310,000 11,4-.000 3,020,000 112,396,000 3,545,800 10,000 427;000 60,000 497,000 $ 116,438,800 $ 578,347 .. 200
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FY 2013/14 Beginning Fund Balance $ 1,167,030,800 Revenues 467,140,600 Debt Proceeds 94,000,000 Transfers In 354,083,900 Total Estimated Sources 915,224,500 Expenditures ( 825,483,400) Debt Service ( 33,177,200) Transfers Out ( 354,083,900) Total Estimated Uses {1,212,744,500) Uses Over Sources {297,520,000} (offset by beginning fund balance) -Ending Fund Balance $ 869,510,800
FY 12/13 FY 12/13 FY 13/14 Revised Budget Projected Budget Measure A Sales Tax $ 141,000,000 $ 141,000,000 $ 147,000,000 LTF Sales Tax 69,500,000 69,500,000 72,500,000 STA Sales Tax 14,212,500 14,212,500 13,298,000 I nte rgove rn mental 93,758,400 64,845,100 223, 155, 700 TUMF Revenue 7,557,300 7,268,200 6,723,400 Other Revenue 882,800 493,500 500,000 Investment Income 7,265,900 4,640,300 3,963,500 Operating Transfers In 328,118,600 318,684,000 354,083,900 Debt Proceeds 1,220,172, 000 745,000,000 94,000,000 TOTAL Sources $ 1,882,467,500 $ 1,365,643,600 $ 915,224,500
VI $1,400 s::::: .9 $1,200 ~ $1,000 $800 $600 $400 $200 $-"''?>+ ':::-.. ((;" c.,'C "''?>+ ':::-.. ((;" "'«.c., 'C "''?>+ ':::-.e.-" c.,'C ---·--···----~ :<::-'<J ~((; ---v-e-e-<::-((;..::;. ~~ -----~-----v-e-e-<::-((;..::;. ---~((; 0 ,:c::-<J :<::-"" ,<::-\e.-'" ~" o" ((;((; <J ~,o e.,"?-v.' " ~((;'?> 'v 4--"?-,:c::-~((; e.-'~ ,:c::-~ "'-0~ ,~ ((; 0~ ((; c}-~ ~((; ,:c::-"'''C .~¢o ~ :;<;>"" <::)((; e.-' o'< II FY 13/14 Budget II FY 12/13 Projected II FY 12/13 Revised Budget
" D e b t S e r v i c e 4 % M a n a g e m e n t S e r v i c e s 1 % R a i l M a i n t e n a n c e & O p e r a t i o n 2 % C a p i t a l H i g h w a y s , R a i l & A r t e r i a l s C a p i t a l L o c a l S t r e e t s & R o a d s 5 % ~ P r o g r a m U s e s P u b l i c & S p e c i a l i z e d T r a n s i t 1 3 % P l a n n i n g & P r o g r a m m i n g 1 % 9 5 % A s s i s t a n c e . 5 % C o m m u t e r A s s i s t a n c e . 5 %
FY 12/13 FY 12/13 FY 13/14 Revised Budget Projected Budget Capital Highway, Rail, and Regional Arterials $ 335,348,800 $ 212,467,800 $ 629,265,600 Capital Local Streets and Roads 42,129,000 42,129,000 43,825,900 Commuter Assistance 4,038,800 4,197,400 4,188,500 Debt Service 143,413,000 110,557,200 33,177,200 Management Services 8,029,200 6,934,000 8,386,900 Motorist Assistance 4,848,000 4, 727,600 5,449,500 Planning and Programming 4,994,100 3,538,600 5,595,500 Public and Specialized Transit 84,811,200 59,406,500 113,697, 100 Rail Maintenance and Operations 14,553,300 11,549,300 15,074,400 TOTAL Expenditures $ 642,165,400 $ 455,507,400 $ 858,660,600
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Personnel Salary and Benefits Professional Services Support Costs Projects and Operations Debt Service Capital Outlay TOTAL Expenditures ..... Professional Services 72% Projects & Operations 67% Capital Outlay 78% Support Costs 3% Debt Service 77% FY 12/13 Revised Budget $ 6,971,100 14,676,700 5,333,300 471,323,600 143,413,000 447,700 $ 642,165,400 FY 12/13 FY 13/14 Projected Budget $ 6,960,200 $ 6,998,000 13,355,700 25,291,700 4,571,900 5,183,500 319,857,200 787,214,000 110,557,200 33,177,200 205,200 796,200 $ 455,507,400 $ 858,660,600
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Measure A administrative salaries and benefits Funding needs for projects and transit operators Sales tax and TUM F revenue trends Timeliness of federal and state reimbursements Receive input for the proposed budget and open the public hearing Review the final budget draft, close the public hearing, and adopt the final budget
AGENDA ITEM 9
RIVERSIDE COUNTY TRANSPORTATION COMMISSION DATE: April 22, 2013 TO: Budget and Implementation Committee FROM: Theresia Trevino, Chief Financial Officer THROUGH: John Standiford, Deputy Executive Director SUBJECT: State Route 91 Corridor Improvement Project Toil-Supported Debt Financings STAFF RECOMMENDATION: At its April meeting, the Commission approved the Plan of Finance and the sales tax portion of the State Route 91 Corridor Improvement Project (SR-91 CIP) financing. The following staff recommendations are related to the issuance of toll revenue bonds and receipt of a Transportation Infrastructure Finance and Innovation Act (TIFIA) loan from the U.S. Department of Transportation (USDOT) related to the SR-91 Cl P financing. This item is for the Committee to: 1) Adopt Resolution No. 13-004, "Resolution Authorizing Agreements Relating to the Sale of Not to Exceed $400,000,000 Aggregate Principal Amount of Riverside County Transportation Commission Toll Revenue Bonds in One or More Series, Including the Execution and Delivery of a Master Indenture, a First Supplemental Indenture, a Second Supplemental Indenture, a Purchase Contract, an Official Statement, and a Continuing Disclosure Agreement, and a Loan Agreement Relating to Transportation Infrastructure Finance and Innovation Act Program Credit Assistance, and the Taking of All Other Actions Necessary in Connection Therewith"; 2) Approve the draft Official Statement for the issuance for a not to exceed amount of $400 million in 201 3 Toil Bonds and authorize the Executive Director to approve and execute the printing and distribution of the Official Statement; 3) Approve the draft Continuing Disclosure Agreement related to the 2013 Toll Bonds between the Riverside County Transportation Commission and Digital Assurance Certification, L.L.C., as dissemination agent, and authorize the Executive Director to approve and execute the final Continuing Disclosure Agreement; Agenda Item 9 21
4} Confirm the approval of, and ratify proposed changes to, the draft form of the Master Indenture, previously approved by the Commission at its July 2010 meeting, between the Riverside County Transportation Commission and Bank of New York Mellon Trust Company, N.A. (BNYM}, as Trustee, related to the 201 3 Toil Bonds and authorize the Executive Director to approve and execute the final Indenture; 5} Confirm the approval of, and ratify proposed changes to, the draft form of the First Supplemental Indenture, previously approved by the Commission at its July 2010 meeting, between the Riverside County Transportation Commission and Bank of New York Mellon Trust Company, N.A., as Trustee, related to the 2013 Toll Bonds and authorize the Executive Director to approve and execute the final First Supplemental Indenture; 6} Approve the draft Second Supplemental Indenture for the TIFIA loan between the Riverside County Transportation Commission and Bank of New York Mellon Trust Company, N.A., as Trustee, and authorize the Executive Director to approve and execute the final Second Supplemental Indenture; 7} Approve the draft Bond Purchase Agreement between the Riverside County Transportation Commission and Bank of America Merrill Lynch and Goldman, Sac~s & Co., as Underwriter Representative acting on behalf of itself and J.P. Morgan Securities, (collectively the Underwriters}, for the 2013 Toll Bonds and authorize the Executive Director to approve and execute the final Bond Purchase Agreement; 8} Approve the draft TIFIA Loan Agreement between the Riverside County Transportation Commission and the USDOT for an amount not to exceed $451 million and authorize the Executive Director to approve and execute the final Bond Purchase Agreement; and 9} Forward to the Commission for final action. BACKGROUND INFORMA T/ON: At its April meeting, the Commission approved the plan of finance for the SR-91 CIP. Current financing assumptions include the issuance of senior lien toll revenue bonds in the form of current interest bonds (CIBs} and capital appreciation bonds (CABs}, a subordinate level TIFIA loan secured by a third lien on toll revenues, the issuance of senior lien sales tax revenue bonds in the form of CIBs, and Measure A sales tax revenue on a pay-go basis. The 2013 Toll Bonds represent 17 percent of total SR-91 CIP costs, the TIFIA loan represents 33 percent of total SR-91 CIP costs, and the Commission's equity contributions in the form of debt and pay-go represents 50 percent of total SR-91 CIP costs. The following is a summary of the most current estimate of sources and uses for the SR-91 CIP financing, and these amounts are subject to change through final pricing of the bonds: Agenda Item 9 22
Proposed Authorized or Approved Amount Debt sources: Par amount Debt uses: Construction Fund deposit Capitalized Interest Fund deposit Debt Service Reserve Fund deposit Retirement of commercial paper notes (development costs) Predevelopment costs Total debt uses Toil Revenue Bonds Bonds Sales Tax Toll Revenue $ 550 $ 400 $ 445 $ 220 $ 296 $ 153 49 45 22 100 $ 445 $ 220 $ $ $ TIFIA loan 451 Pay Go N/A 435 $ 106 435 $ 106 $ 435 $ 106 (in millions $) Pre-development Costs N/A $ 110 110 $ 110 Total $ 1,401 $ 1,316 $ 990 94 22 100 110 $ 1,316 The 2013 Toll Bonds are proposed to be issued as fixed, long-term bonds. The 2013 Toll Bonds include CIBs with projected interest coupon rates ranging from 3.33 percent to 6.50 percent and maturities of principal beginning in July 2029 through July 2041. The 2013 Toll Bonds also include CABs with an investment return on an initial principal amount that accrues interest at a stated compounded rate until maturity beginning in July 2032 through July 2043. At maturity of the CABs, the bondholder receives a single payment for the maturity value representing both the initial principal amount and the total investment return. Actual interest rates for the bonds will be determined in June upon the pricing of the bonds. Since the SR-91 Cl P' s substantial completion date and commencement of toll operations are currently assumed in the financial model to occur in November 201 7, a portion of the toll revenue bond proceeds will be used for capitalized interest payments during construction, as indicated in the table above. A portion of the 2013 Toll Bonds proceeds will be used to fund a debt service reserve fund as well as to pay costs of issuance, which are limited to 2 percent per the Commission's debt management policy. Agenda Item 9 23
Projected debt service coverage in the financial model based on projected toll revenues is expected to exce~d the toll bonds indenture (draft) requirement of 1 .5x coverage for senior level toll debt. The toll bonds coverage requirement is included in the updated debt management policy included with this staff report. TIFIA Loan The TIFIA loan interest rate is currently estimated at 3.50 percent and is tied to the rate on a 30-year U.S. Treasury Bond plus 1 basis point (0.01 percent). The actual interest rate for the TIFIA loan will be determined in June upon the execution of the TIFIA Loan Agreement. Interest on the TIFIA loan will be payable beginning in July 2022. During the first five years of repayment, only interest payments are required. To the extent that payments of interest result in debt service coverage of at least 1 .3x for all senior and subordinated toll revenue-supported debt, the debt service is considered mandatory debt service. Mandatory debt service is required, and failure to pay results in a default, which would set the toll revenue-supported financing for the SR-91 CIP on a course of ultimate default. The TIFIA loan will also include payments during the period from July 2022 to July 2027 that fully fund all interest. The additional payments are considered scheduled debt service. Payment of scheduled debt service is only required if revenues are sufficient to allow its payment. The TIFIA loan maturities are projected to begin in July 2027 through July 2052, which is about 15 years before the expiration of toll authority. Key provisions of the TIFIA loan include the following: • A $20 million TIFIA loan reserve will be established from excess right of way sales proceeds, which are estimated at $29 million, or a 2009 Measure A Western County highway contribution if such proceeds are not sufficient; • Minimum 1 .3x coverage for all senior and subordinated toll revenue supported debt; • TIFIA loan to be drawn down pro rata with 2013 Toll Bonds proceeds for construction; • Additional bonds secured by toll revenues can be issued if the minimum 1 .5x coverage requirement is met and the TIFIA lender approves; • Completion bonds may be issued should that prove necessary due to unexpected cost increases or delays; • After payment of current debt service on the toll revenue bonds and the TIFIA loan, revenues can be applied to the 71/91 interchange project and the 91115 north connector (Deferred SR-91 CIP); and • Revenues remaining after payment on bonds, the TIFIA loan, and the Deferred SR-91 CIP will be applied on a 50-50 ratio to prepayment of the TIFIA loan and to other Commission projects. Agenda Item 9 24
Flow of Funds for Toll Operations Toll operations will be conducted in accordance with a three-party agreement between the Orange County Transportation Authority (OCTA), the Commission, and the 91 Express Lanes operator, Cofiroute USA. Commission approval of this agreement is expected at the May meeting. Deposits and other non-toll related revenues will be deposited by the operator into a master custodial account to be determined by OCTA and the Commission. Toll revenues will be transferred on a daily basis to individual trust accounts managed by each agency's trustee; for the Commission, this is BNYM. Other non-toll related revenues such as violation fees and minimum account fees will be transferred on a weekly or monthly basis, as appropriate. These revenues will be required to fund the following significant costs and reserves, which are listed in order of priority: • Operations and maintenance; • 2013 Toll Bond interest; • 2013 Toll Bond principal; • 2013 Toll Bond debt service reserve replenishment, if required; • Interest and principal as well as debt service reserve replenishment on second lien toll supported obligations, of which there currently are none anticipated; • TIFIA loan mandatory debt service; • TIFIA loan reserve (if the TIFIA loan reserve is applied to payment of TIFIA mandatory debt service); • Repair and rehabilitation reserve; • TIFIA loan scheduled debt service; • Planned improvements reserve to fund deferred SR-91 CIP projects; and • Residual account. Events of default identified in the 2013 Toll Bond Indenture and First Supplemental Indenture (Indentures) are as follows: • Default in payment of any interest or principal on any bond when due; • Occurrence and continuance of a bankruptcy-related event of the Commission; and • Default in observance or performance of any other covenant or agreement of Commission contained in the Indentures for a period of 60 days after written notice. Should an event of default occur, the Indentures specify the application of revenue and other funds after a default. Agenda Item 9 25
Transaction Documents The following is a summary of toll-supported debt documents related to the SR-91 CIP Plan of Finance approved by the Commission: 2 0 13 Toil Revenue Bonds Resolution 1 3-004 Official Statement Continuing Disclosure Agreement Master, First, and Second Supplemental Indentures Bond Purchase Agreement TIFIA Loan ! Loan Agreement Drafts of the following documents related to the toll supported debt of the SR-91 CIP financing are included as attachments to this staff report for approval and consist of the following: • Resolution No. 13-004 (draft) authorizing agreements related to the sale of a not to exceed amount of toll revenue bonds including the execution and delivery of a master indenture, first supplemental . indenture, second supplemental indenture, purchase contract, official statement, and continuing disclosure agreement; and a TIFIA loan agreement; and the taking of all other actions necessary in connection with this transaction (Attachment 1 ); • Preliminary Official Statement (draft) for the 2013 Toll Revenue Bonds (Attachment 2); • Master and First Supplemental Indentures between the Commission and the trustee (draft) regarding the terms and conditions of the issuance of the 2013 Toll Revenue Bonds (Attachments 3 and 4); • Second Supplemental Indenture between the Commission and the trustee (draft) regarding the terms and conditions of the TIFIA loan (Attachment 5); • Continuing Disclosure Agreement (draft) between the Commission and the dissemination agent for the 2013 Toll Revenue Bonds (Attachment 6); and • TIFIA Loan Agreement between the Commission and USDOT (draft) regarding the terms and conditions of the TIFIA loan (Attachment 7). The purchase contract (draft) between the Commission and the underwriters regarding the purchase of the 2013 Toll Revenue Bonds will be provided at the Commission meeting. As part of the action to authorize the issuance of the 2 013 Toil Revenue Bonds, the Commission will approve the form of the Preliminary Official Statement and authorize its distribution in connection with the sale of the bonds, as well as the preparation of a final Official Statement once the bonds have been priced. These offering documents are required under state and federal securities laws prohibiting the offer and sale of securities such as the 2013 Toll Revenue Bonds, unless all Agenda Item 9 26
matters that would be material to an investor in the bonds have been adequately disclosed and that there is no omission of material facts. Furthermore, under rules of the Securities and Exchange Commission, the underwriters cannot purchase the bonds unless they have received a substantially final offering document, which discloses all material information that they reasonably believe to be true and correct. The Commissioners serving on the Board as the governing body of the issuer of the 2013 Toll Revenue 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 and to provide financial projections included in 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 Commission meeting to respond to the identification of any misstatements or omissions or to such questions. The following is a schedule of subsequent activities related to the SR-91 CIP financing: Posting of preliminary official statements Pricing activities TIFIA Loan agreement execution Bond closing activities May 20 June 10-12 June 25-26 June 26-27 Changes to these documents may be necessary as a result of continuing development by the financing team and continuing negotiations with TIFIA. Since general legal counsel is a key member of the financing team, staff recommends the executive director be authorized to approve and execute the final documents. Financial Impact Proceeds from the 2013 Toll Bonds will be received upon issuance of the bonds; the TIFIA loan will be drawn upon monthly in connection with cost reimbursement requisitions. Agenda Item 9 27
I Financial Information Yes FY 2012/13 $220 million toll bond In Fiscal Year Budget: Year: Amount: proceeds N/A FY 2013/14 + $435 million TIFIA loan Source of Funds: I Toll revenue bonds, TIFIA loan Budget Adjustment: I No N/A GL!Project Accounting No.: 3063159102 $220,000,000 Bond Proceeds 306 31 59104 $435,000,000 TIFIA Loan Proceeds Fiscal Procedures Approved: ~~ _ _j Dat:J 04/15/13 ---------·-·---Attachments: 1) Resolution No. 13-004 (Draft) for Toll Financing 2) Toll Bonds Preliminary Official Statement (Draft) 3) Toll Bonds Master Indenture (Draft) 4) Toll Bonds First Supplemental Indenture (Draft) 5) Toll Bonds Second Supplemental Indenture (Draft) 6) Toll Bonds Continuing Disclosure Agreement (Draft) 7) TIFIA Loan Agreement (Draft) Agenda Item 9 28
NO.B-004 ATTACHMENT 1 OH&S Draft 03/26/2013 RESOLUTION AUTHORIZING AGREEMENTS RELATING TO THE SALE OF NOT TO EXCEED $400,000,000 AGGREGATE PRINCIPAL AMOUNT OF RIVERSIDE COUNTY TRANSPORTATION COMMISSION TOLL REVENUE BONDS IN ONE OR MORE SERIES, INCLUDING THE EXECUTION AND DELIVERY OF A MASTER INDENTURE, A FIRST SUPPLEMENTAL INDENTURE, A SECOND SUPPLEMENTAL INDENTURE, A PURCHASE CONTRACT, AN OFFICIAL STATEMENT, A CONTINUING DISCLOSURE AGREEMENT, AND A LOAN AGREEMENT RELATING TO TRANSPORTATION INFRASTRUCTURE FINANCE AND INNOVATION ACT PROGRAM CREDIT ASSISTANCE, 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.) (as amended, including by Chapter 714 of the California Statutes of 2008 (Senate Bill No. 1316), the "Act"); 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 "Sales Tax 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 Sales Tax 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 (collectively, the "Sales Tax Debt"), the proceeds of which will fund 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"); OHSUSA753400213.1 29
WHEREAS, on July 14, 2010, the Commission adopted Ordinance No. 10-002 (the "20 10 Ordinance") providing that the aggregate principal amount of Sales Tax Debt at any one time outstanding shall not exceed $975 million; WHERAS, by its terms, the 2010 Ordinance became effective at the close ofthe polls on November 2, 2010, the day of the election at which the proposition relating to the 2010 Ordinance was approved by more than a majority of electors voting on the measure; WHEREAS, the Ordinance authorizes the Commission to apply proceeds of the Sales Tax (the "Sales Tax Revenues") for transportation purposes, including the construction, capital, acquisition, maintenance and operation of streets, roads, highways, including state highways, and for related purposes; WHEREAS, the Commission is further 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 Sales Tax Revenues; WHEREAS, the Act was amended by Chapter 714 of the California Statutes of 2008 (Senate Bill No. 1316), which, among other provisions authorizes the Commission to set, levy and collect tolls, user fees, or other similar charges, payable for use of the toll lanes and other facilities on the portion of State Highway Route 91 (the "SR-91 ") between the Orange and Riverside County line and State Highway Route 15 (collectively, the "Toll Road"), and to issue one or more series of bonds (the "Toll Revenue Bonds") pursuant to the terms and conditions of a resolution adopted by a two-thirds vote of the Commission, which bonds are payable from the proceeds of such tolls (the "Toll Revenues") and any other source of revenues available to the Commission and pledged as security for the Toll Revenue Bonds; WHEREAS, the Act authorizes Toll Revenue Bonds to be issued for the purpose of financing the planning, design, development, financing, construction, reconstruction, rehabilitation, improvement, acquisition, lease, operation, or maintenance, or any combination of these, with respect to tolled and nontolled facilities, structures, onramps, connector roads, bridges, and roadways that are on, necessary for, or related to the construction or operation of the portion of the SR-91 between the Orange and Riverside County line to the west and State Highway Route 15 to the east (the "Riverside SR-91 Corridor Improvement Project"); WHEREAS, in accordance with that certain Estoppel Certificate and Assignn1ent and Assumption Agreement, dated as of December 30, 2002 (the "Assignment Agreement"), by and among California Private Transportation Company, L.P., the Orange County Transportation Authority ("OCT A"), and the California Department of Transportation ("Cal trans"), OCT A and Caltrans are parties to that certain Amended and Restated Development Franchise Agreement (State Route 91 Median Improvements), dated as of June 30, 1993 (as it has been amended, the "OCT A Franchise Agreement"), as amended by that certain Amendment No. 1 to Amended and Restated Development Franchise Agreement (State Route 91 Median Improvements) dated as of July 16, 1993, and that certain Amendment No. 2 to Amended and Restated Development Franchise Agreement (State Route 91 Median Improvements) dated as of December 30, 2002, OHSUSA:753400213_1 -2-30
pertaining to the construction and operation of tolled transportation facilities on the SR -91 within both Orange and Riverside Counties; WHEREAS, OCT A imposes tolls on certain SR -91 lanes in Orange County pursuant to the OCT A Franchise Agreement; WHEREAS, the Commission's authorization to levy tolls and issue Toll Revenue Bonds pursuant to the Act was conditioned upon OCT A amending or partially assigning the OCTA Franchise Agreement to exclude that portion of SR-91 between the Orange and Riverside County line and State Highway Route 15 from such OCT A Franchise Agreement, which amendment has been effected pursuant to the Amendment No. 3 to Amended and Restated Development Franchise Agreement (State Route 91 Median Improvements), dated as of December 12, 2011 (collectively, the "Amendment"), by and between OCTA and Caltrans; WHEREAS, in its Resolution I 0-026 (the "20 1 0 Resolution"), the Commission determined to set, levy, and collect tolls, user fees and similar charges for the use of the Toll Road, pursuant to a toll schedule to be adopted by the Commission, and to apply all or a portion of the Toll Revenues to the financing of the Riverside SR-91 Corridor Improvement Project's design, construction and operation; WHEREAS, in its 2010 Resolution, the Commission authorized the issuance pursuant to the Act of two or more series of Toll Revenue Bonds, entitled "Riverside County Transportation Commission Toll Revenue Bonds", in an aggregate principal amount not to exceed nine hundred million dollars $900,000,000, subsequent to the effectiveness of the Amendment and following the approval by a subsequent resolution of the Commission of certain documentation necessary for the sale of such Toll Revenue Bonds, including a bond purchase agreement, an official statement describing the Toll Revenue Bonds to potential investors and other customary or necessary documentation for the sale of such Toll Revenue Bonds to investors, together with completion of appropriate financial, regulatory and environmental review of the Riverside SR-91 Corridor Improvement Project, including review under the California Environmental Quality Act, (California Public Resources Code Section 21000 et seq. and Title 14 of the California Code of Regulations Section 15000 et seq.) ("CEQA") and other applicable environmental laws; WHEREAS, the Commission completed an Environmental Impact Statement/Environmental Impact Report for the Riverside SR-91 Corridor Improvement Project (the "EIS/EIR") and submitted the EIS/EIR to Caltrans in October 2011 and, on November 5, 2012, the Record of Decision was released and a Notice of Final Federal Agency Actions on Proposed Highway in California was published in Federal Register Volume 77, Number 214 in satisfaction of the requirements of CEQA, the National Environmental Policy Act (codified at 42 U.S.C. Section 4321 et seq.), and Section 6002 of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (codified at 23 U.S.C. Section 139) for the financing of the Riverside SR-91 Corridor Improvement Project; WHEREAS, the Commission approved the Riverside SR-91 Corridor Improvement Project on November 14,2012 in its Resolution No. 12-028; OHSUSA:753400213.1 -3-31
WHEREAS, in its 201 0 Resolution, the Commission approved: (i) a proposed form of Cooperative Agreement for Design-Build of the State Route 91 Toll Facilities and Corridor Improvement Project, by and between the Commission and Caltrans (the "Caltrans DB Cooperative Agreement"), (ii) a proposed form of Cooperative Agreement for State Route 91 Express Lanes and Corridor Improvements Between Riverside County Transportation Commission and Orange County Transportation Authority, by and between the Commission and OCTA (the "OCT A Cooperative Agreement"), providing guidelines for cooperation between the Commission and OCTA in the planning, design, construction and operation of the Riverside SR-91 Corridor Improvement Project following its approval, and (iii) a proposed form of master indenture and supplemental indentures, by and between the Commission and U.S. Bank National Association, as trustee (collectively, the "Toll Revenue Bond Indenture"), providing for the issuance of two series of Toll Revenue Bonds and the application of the proceeds thereof to (A) finance the planning, design, development, financing, potential construction, reconstruction, rehabilitation, improvement, acquisition, lease, operation, and maintenance of the Riverside SR-91 Corridor Improvement Project, (B) apply for or otherwise obtain available federal, state and local matching funds, loans and grants in order to make additional funds available for the Riverside SR-91 Corridor Improvement Project; and (C) finance the costs of issuance incurred in connection with such Toll Revenue Bonds; WHEREAS, on December 16,2011, the Commission executed and delivered the OCTA Cooperative Agreement by and between the Commission and OCT A; WHEREAS, on July 25, 2012, the Commission executed and delivered the Caltrans DB Cooperative Agreement by and between the Commission and Caltrans; WHEREAS, the Commission has submitted an application to the United States Department of Transportation (the "Department of Transportation") for Federal project credit assistance under the Transportation Infrastructure Finance and Innovation Act, codified under Sections 601-609 of title 23 of the United States Code, and the Commission anticipates full approval for project credit assistance in an original amount (excluding compounded interest) of not to exceed four hundred fifty-one million dollars ($451 ,000,000) (the "TIFIA Loan"), to fund a portion of the Riverside SR-91 Corridor Improvement Project; WHEREAS, the Toll Revenue Bond Indenture will secure the Commission's obligation to repay the TIFIA Loan from Toll Revenues pursuant to the terms of a loan agreement to be entered into by and between the Commission and the Department of Transportation (the "TIFIA Loan Agreement"); WHEREAS, the Commission has heretofore issued its Sales Tax Revenue Bonds (Limited Tax Bonds) in the aggregate principal amount of $335,000,000 (the "Outstanding Sales Tax Bonds"), 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, and a third supplemental indenture, dated as of November 1, 2010 (collectively, and as subsequently amended from time to time, the "Sales Tax Revenue Bond Indenture"), each by and between the Commission and U.S. Bank National Association, as trustee (the "Sales Tax Trustee"); OHSUSA 753400213.1 -4-32
WHEREAS, the Commission has heretofore authorized the issuance from time to time of not to exceed $120,000,000 in aggregate principal amount of its Commercial Paper Notes (Limited Tax Bonds), Series A and Series B (the "CP Notes"), pursuant to an indenture, dated as of March 1, 2005, by and between the Commission and U.S. Bank National Association, as successor trustee and an issuing and paying agent agreement, dated as of March 1, 2005, and a first supplement to issuing and paying agent agreement, dated as of Apri I 1, 2012, each by and between the Commission and U.S. Bank Trust National Association, as issuing and paying agent; WHEREAS, the Commission has heretofore authorized the issuance of one or more new series or subseries of bonds in an aggregate principal amount not to exceed five hundred fifty million dollars ($550,000,000) and payable on a parity with the Outstanding Sales Tax Bonds is necessary in order to finance (i) funds for portions of the Riverside SR-91 Corridor Improvement Project 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 2013" (the "Series 2013 Sales Tax Bonds"); WHEREAS, the Commission hereby determines that an additional allocation of Sales Tax Revenues, in an aggregate amount not to exceed one hundred thirty-one million dollars ($131 ,000,000) (the "Additional Allocation"), to fund the costs of additional portions of the Riverside SR-91 Corridor Improvement Project authorized in the Expenditure Plan through no later than fiscal year 2018, is necessary and desirable in order to facilitate the financing and completion of the Riverside SR-91 Corridor Improvement Project, including with respect to obtaining federal support in the form of the TIFIA Loan; WHEREAS, in light of the additional sources of funding for the Riverside SR-91 Corridor Improvement Project available to the Commission as set forth above in this Resolution, including the TIFIA Loan, the Series 2013 Sales Tax Bonds and the Additional Allocation, the Executive Director of the Commission (the "Executive Director") has informed the Commission of her determination that it will be necessary initially to issue one or more series of Toll Revenue Bonds and, pursuant to the authority granted to her by the Commission in the 2010 Resolution, the Executive Director anticipates requiring and approving changes to the form of Toll Revenue Bond Indenture presented to the Commission in connection with the 2010 Resolution as are necessary (i) to provide for the initial issuance of such series of Toll Revenue Bonds, (ii) to include provisions relating to the security for the TIFIA Loan, and (iii) to make such other changes therein, including substituting The Bank ofNew York Mellon Trust Company, National Association, as trustee for the Toll Revenue Bonds (the "Toll Trustee"), as are necessary or desirable to issue such series of Toll Revenue Bonds pursuant to the authorization of the Commission in the 2010 Resolution; WHEREAS, the following documents have been prepared and presented to the Commission (collectively, the "Toll Financing Documents"): OHSUSA:753400213.1 -5-33
(1) a proposed form of Toll Revenue Bond Indenture, by and between the Commission and the Toll Trustee, including a master indenture (the "Master Toll Revenue Bond Indenture"), a first supplemental indenture (the "First Supplemental Toll Revenue Bond Indenture") and a second supplemental indenture (the "Second Supplemental Toll Revenue Bond Indenture"), each by and between the Commission and the Toll Trustee, and each incorporating changes therein that the Executive Director expects to require and approve in connection with obtaining the TIFIA Loan and with the issuance of one or more series of Toll Revenue Bonds (the "Series 2013 Toll Bonds") to be secured primarily by a first lien on Toll Revenues as authorized in the 2010 Resolution; (2) a proposed form of TIFIA Loan Agreement, by and between the Commission and the Department of Transportation, providing the repayment terms for the TIFIA Loan; (3) a proposed form of bond purchase agreement setting forth the terms of sale of the Series 2013 Toll Bonds (the "Toll Purchase Contract"), in an aggregate principal amount not to exceed four hundred million dollars ($400,000,000), which the Commission proposes to enter into with Goldman, Sachs & Co. and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as representatives, acting on behalf of themselves and J.P. Morgan Securities LLC (collectively, the "Toll Bond Underwriters"); (4) a proposed form of official statement in preliminary form to be distributed in connection with the offering and sale of the Series 2013 Toll Bonds (the "Official Statement"); and (5) a proposed form of Continuing Disclosure Agreement to be executed and delivered by the Commission to assist the Toll Bond Underwriters in satisfying their respective obligations under Rule 15c2-12 promulgated by the Securities and Exchange Commission; and WHEREAS, the Commission has been presented with proposed forms of the Toll Financing Documents relating to the financing described herein (the "Toll Financing"), and the Commission has examined and approved each document and desires to authorize and direct the execution of such documents as are specified herein and such other documents as are necessary in connection with the Toll Financing and to authorize and direct the consummation of the Toll Financing, and desires to confirm the Commission's authorization in the 2010 Resolution ofthe issuance of the Series 2013 Toll Bonds and the execution and delivery of the Toll Revenue Bond Indenture, including the Master Toll Revenue Bond Indenture, First Supplemental Toll Revenue Bond Indenture and the Second Supplemental Toll Revenue Bond Indenture, and to ratify the changes expected to be incorporated therein by the Executive Director pursuant to such authorization; NOW THEREFORE, THE RIVERSIDE COUNTY TRANSPORTATION COMMISSION RESOLVES: OHSUSA:753400213.1 -6-34
Section 1. The Commission finds and determines that the foregoing recitals are true and correct and makes them an effective part of this Resolution by incorporating them herein by reference. Section 2. The proposed form of TIFIA Loan Agreement presented to this meeting and the terms and conditions thereof are hereby approved. The principal amount borrowed for eligible costs payable from of the TIFIA Loan (not to exceed $451 ,000,000), the structure, date, maturity date (not to exceed the date that is thirty-five (35) years after the projected date of substantial completion of the Riverside SR -91 Corridor Improvement Project), fixed interest rate or rates (such rates not to exceed a maximum of 8% per annum), interest payment dates and provisions (including deferred and compounded interest), place or places of payment, terms of prepayment and other terms of the TIFIA Loan shall be (subject to the foregoing limitations) as provided in the TIFIA Loan Agreement 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 TIFIA Loan Agreement, 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. The Executive Director is hereby further authorized and directed, for and in the name and on behalf of the Commission, to execute and deliver any additional documents, including the Second Supplemental Toll Revenue Bond Indenture, which the Executive Director may deem necessary or desirable, following consultation with the Department of Transportation and bond counsel to the Commission, to establish the TIFIA Loan Agreement as a Toll Revenue Bond, secured and payable upon the tem1s set forth in the TIFIA Loan Agreement and the Toll Revenue Bond Indenture. Section 3. The Commission's authorization and approval of the issuance by the Commission of Riverside County Transportation Commission Toll Revenue Bonds, Series 2013, in accordance with the provisions set forth in the Toll Revenue Bond Indenture, including the Master Toll Revenue Bond Indenture, the First Supplemental Toll Revenue Bond Indenture and the Second Supplemental Toll Revenue Bond Indenture, all as set forth in the 2010 Resolution, is hereby confirmed and approved. Section 4. The Toll Revenue Bond Indenture authorized and approved in the 2010 Resolution, including the Master Toll Revenue Bond Indenture, the First Supplemental Toll Revenue Bond Indenture and the Second Supplemental Toll Revenue Bond Indenture, each incorporating changes therein that the Executive Director expects, pursuant to the authority granted to her by the Commission in the 2010 Resolution, to require and approve in connection with the issuance of the Series 2013 Toll Bonds, as presented to this meeting, and the terms and conditions thereof are hereby ratified and approved and the authority of the Executive Director to make such changes pursuant to the authorization in the 2010 Resolution is confirmed. The structure, date, maturity date or dates (not to exceed 50 years following the date on which the Toll Road is opened for public use), fixed or variable interest rate or rates (such rates not to exceed a maximum of 12% per annum, except that the interest rate on any Series 2013 Toll Bonds purchased by a liquidity provider and held pursuant to the terms of a liquidity facility shall not exceed 18% per annum) or methods of determining the same, interest payment dates, forms, registration privileges, place or places of payment, terms of redemption, tender, OHSUSA:753400213.1 -7-35
mandatory purchase, additional series designation and number thereof and other terms of the Series 2013 Toll Bonds shall be (subject to the foregoing limitations as originally specified in the 2010 Resolution) as provided in the Toll Revenue Bond Indenture, as finally executed and delivered. The Executive Director is hereby further authorized and directed, for and in the name and on behalf of the Commission, to execute and deliver the Toll Revenue Bond Indenture, including the Master Toll Revenue Bond Indenture and the First Supplemental Toll Revenue Bond Indenture, in substantially said form, with such additional changes therein as the officer executing the same may require or approve, including, without limitation, changes as may be necessary to assign, pledge or mortgage the Commission's right, title and interest, to the extent permitted by Jaw, in any agreements relating to the Toll Road, including, without limitation, the design, construction, operation and maintenance thereof, such approval to be conclusively evidenced by the execution and delivery thereof. Section 5. The proposed form of 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 2013 Toll Bonds to the Toll Bond Underwriters pursuant to the Purchase Contract, with the Toll Bond Underwriters' compensation not to exceed LJ% of the principal amount of the Series 2013 Toll Bonds, and to execute and deliver the 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 6. The proposed fom1 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 cet1ificate 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 Toll Bond Underwriters of copies of the Official Statement in final fom1 to all actual purchasers of the Series 2013 Toll Bonds, and the distribution by the Toll Bond Underwriters of the Official Statement in preliminary fonn to potential purchasers of the Series 2013 Toll Bonds, is hereby authorized and approved. Section 7. The proposed form of Continuing Disclosure Agreement presented to this meeting is hereby approved. 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 same may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof. Section 8. The Executive Director is hereby authorized to negotiate with financial institutions and/or insurance companies, as applicable, a surety bond or an insurance policy, and, if the Executive Director, with the advice of its financial advisor, determines that doing so is in the best interest of the Commission, to secure on such terms as the Executive Director, with the OHSUSA:753400213.1 -8-36
advice of the Commission's financial advisor, determines are appropriate such insurance policy or surety bond in order to secure payment of the principal of, or interest on, the Series 2013 Toll Bonds or to fund any bond reserve fund established pursuant to the Toll Revenue Bond Indenture, including the Master Toll Revenue Bond Indenture, the First Supplemental Toll Revenue Bond Indenture and the Second Supplemental Toll Revenue Bond Indenture. Section 9. Each of the Executive Director, the Deputy Executive Director of the Commission or the Chief Financial Officer of the Commission, acting singly (each an "Authorized Officer") is hereby authorized to enter into or to instruct the Toll Trustee to enter into one or more investment agreements (hereinafter collectively referred to as the "Investment Agreement") providing for the investment of moneys in any of the funds and accounts created under the Toll Revenue Bond Indenture, including the Master Toll Revenue Bond Indenture, the First Supplemental Toll Revenue Bond Indenture and the Second Supplemental Toll Revenue Bond Indenture, on such terms as the Authorized Officer executing the same shall deem appropriate. Pursuant to Section 5922 of the California Government Code, the Commission hereby finds and determines that the Investment Agreement will reduce the amount and duration of interest rate risk with respect to amounts invested pursuant to the Investment Agreement and is designed to reduce the amount or duration of payment, rate, spread or similar risk or result in a lower cost of borrowing when used in combination with the Series 2013 Toll Bonds, or enhance the relationship between risk and return with respect to investments. Section 10. The Additional Allocation in an amount to be determined from time to time by the Executive Director (not to exceed an aggregate amount of $131 ,000,000), is hereby authorized and approved and the Executive Director is hereby authorized and directed to disburse such amounts (on any date on or prior to June 30, 2017) from Sales Tax Revenues or other state or local revenues in order to fund a portion of the costs of the Riverside SR-91 Corridor Improvement Project authorized in the Expenditure Plan. Section 11. All approvals, consents, directions, notices, orders, requests and other actions permitted or required by any of the documents authorized by this Resolution, whether before or after the issuance of the Series 2013 Toll Bonds or the execution of the TIFIA Loan Agreement, including, without limitation, any amendment of any of the documents authorized by this Resolution or other agreements related thereto, and any of the foregoing that may be necessary or desirable in connection with any investment of proceeds of the Series 2013 Toll Bonds or the TIFIA Loan Agreement, or in connection with the addition, substitution or replacement of underwriters, or any agreements with paying agents, escrow agents or verification agents, the removal or replacement of the Toll Trustee or any similar action may be given or taken by an Authorized Officer without further authorization or direction by the Commission, and each Authorized Officer, acting singly, is hereby authorized and directed to give any such approval, consent, direction, notice, order, request, or other action and to execute such documents and take any such action which such Authorized Officer may deem necessary or desirable to further the purposes of this Resolution. Section 12. All actions heretofore taken by the officers and agents of the Commission with respect to the Toll Financing and the issuance and sale of the Series 2013 Toll Bonds, including such changes as the Executive Director anticipates requiring and approving changes to the form of Toll Revenue Bond Indenture presented to the Commission in connection with the OHSUSA:753400213.1 -9-37
2010 Resolution, are hereby ratified, confirmed and approved. If at the time of execution of any of the documents authorized herein, the Executive Director is unavailable, such documents may be executed by the Deputy Executive Director of the Commission or the Chief Financial Officer in lieu of the Executive Director. The Chair of the Board or, in her absence, a Vice Chair of the Board, is hereby authorized to execute and deliver the Series 2013 Toll Bonds. The Chief Financial Officer of the Commission shall act as the Auditor-Controller of the Commission for execution of the Series 2013 Toll Bonds and is hereby authorized to execute and attest to the execution of the Series 2013 Toll Bonds. The Clerk of the Board is hereby authorized to attest to the execution by an Authorized 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 adopt written procedures relating to its bonds and 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 Toll Financing and the issuance and sale of the Series 2013 Toll Bonds and otherwise to carry out, give effect to and comply with the terms and intent ofthe Ordinance, this Resolution, the 2012 Resolution, the Act, the Series 2013 Toll Bonds, the TIFIA Loan Agreement and the other documents approved hereby. Section 15. This Resolution shall take effect immediately upon its adoption and approval. APPROVED AND ADOPTED by the Riverside County Transportation Commission at its meeting on May_, 2013. ATTEST: By: __________________________ _ Clerk of the Board of the Commission OHSUSA:753400213.1 By: -10-38 Chair, Board of Commissioners
CERTIFICATE OF THE CLERK OF THE BOARD OF THE RIVERSIDE COUNTY TRANSPORTATION COMMISSION I, Jennifer Harmon, Clerk of the Board of the Riverside County Transportation Commission (the "Commission"), hereby certify that the foregoing is a full, true and correct copy of a resolution duly adopted by at least a two-thirds vote of the Commission at a meeting of the governing board of said Commission duly and regularly held in Riverside, California, on May_, 2013, of which meeting all ofthe members of said Commission had due notice. I further certify that I have carefully compared the foregoing copy with the original minutes of said meeting on file and of record in my office; that said copy is a full, true and correct copy of the original resolution adopted at said meeting and entered in said minutes; and that said resolution has not been amended, modified, rescinded or revoked in any manner since the date of its adoption, and the same is now in full force and effect. I further certify that an agenda of said meeting was posted at least 72 hours before said meeting at a location in Riverside, California, freely accessible to the public and a brief general description of the resolution to be adopted at said meeting appeared on said agenda. IN WITNESS WHEREOF, I have executed this certificate hereto as of this date, ____ ,2013. OHSUSA:7534002 I 3. I By---1 1-39 Clerk
ATTACHMENT 2 DRAFT OF 04/15/13 PRELIMINARY OFFICIAL STATEMENT DATED , 2013 EW ISSUE-BOOK-ENTRY ONLY RATINGS: Fitch: " " IDAC Logo! S&P:" " See "RATINGS" herein. In the opinion of Orrick, Herrington & Sutcliffe LLP, Bond Counsel 10 the Commission, based upon an analysis of exisling laws, regula/ions, rulings and court decisions, and assuming, among other mailers, compliance wilh cerlain covenanls, interesl on !he Series 2013 Bonds is excluded from gross income for federal income tax purposes under Section I 03 of the Internal Revenue Code of 1986 and exempl from State of California personal income taxes. In the fur/her opinion of Bond Counsel, interest on !he Series 2013 Bonds is no! a specific preference if em for purposes of the federal individual or corporale alternative minimum faxes, although Bond Counsel observes that such interest is included in adjusted current earnings when calculating corporate alternative minimum taxable income. Bond Counsel expresses no opinion regarding any other lax consequences related lo the ownership or disposition of, or the accrual or receipl of interest on, the Series 2013 Bonds. See "TAX MATTERS" RIVERSIDE COUNTY TRANSPORTATION COMMISSION $ . $ Toll Revenue Senior Lien Bonds, 2013 Series A (Current Interest Obligations) Dated: Date of Delivery ---:-=-:----,=----=-Toll Revenue Senior Lien Bonds, 2013 Series B (Capital Appreciation Obligations) Due: as shown on inside cover The Toll Revenue Senior Lien Bonds described above (individually, the "Series 2013A Bonds" and the "Series 20138 Bonds," and collectively, the "Series 2013 Bonds") will be issued as fully-registered obligations by the Riverside County Transportation Commission (the "Commission"). The Commission is issuing the Series 2013 Bonds pursuant to the Master Indenture, dated as of June 1, 2013 (the "Master Indenture"), and the First Supplemental Indenture, dated as of June I, 2013 (the "First Supplemental Indenture"), each by and between the Commission and The Bank ofNew York Mellon Trust Company, N.A., as trustee (the "Trustee"). The Series 2013 Bonds, and any Parity Obligations, constitute special, limited obligations of the Commission secured by and payable solely from a first lien on, pledge of, and security interest in the Trust Estate, which consists primarily of Toll Revenues of the Toll oad, subject to the provisions of the Indenture permitting the prior application thereof for the purposes described therein. Capitalized ;:!rms used on the cover page hereof and not otherwise defined shall have the meaning assigned thereto in "APPENDIX D -SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE-Definitions." The Series 2013A Bonds are being issued as Current Interest Obligations and the Series 2013B Bonds are being issued as Capital Appreciation Obligations. Interest on the Series 20 13A Bonds will accrue from the date of initial delivery thereof, and will be payable on each June I and December I, commencing December I, 2013. The Series 2013B Bonds will not bear current interest; each Series 20 I 3B Bonds will increase in value by the accumulation of earned interest from its initial principal amount on the date of issuance thereof to the Maturity Value thereof at maturity, assuming in any period that the value increases in equal daily amounts on the basis of a 360-day year of twelve 30-day months. The interest on the Series 20 13B Bonds will be compounded commencing on December I, 2013, and thereafter on June I and December I in each year to maturity [or the date of redemption prior thereto]. The Series 2013 Bonds initially are issuable only to Cede & Co., the nominee of The Depository Trust Company, New York, New York ("DTC'), pursuant to the Book-Entry System described herein. Beneficial ownership may be acquired in principal denominations of $5,000, or any integral multiple thereof, with respect to the Series 20 13A Bonds and in Maturity Values of $5,000, or any integral multiple thereof, with respect to the Series 20 13B Bonds. Debt service payments on the Series 2013 Bonds will be payable by the Trustee to DTC, which will make distribution of the amounts so paid to the beneficial owners thereof See "THE SERIES 2013 BONDS-Book-Entry System" and "APPENDIX G-BOOK-ENTRY SYSTEM" herein. The Series 2013 Bonds are subject to optional and mandatory sinking fund redemption prior to maturity as described herein. See "THE SERIES 20 I 3 BONDS-Redemption." A portion of the proceeds of the Series 2013 Bonds, together with certain other funds described herein, will be used to finance a portion of the costs of designing, engineering, developing and constructing the Riverside SR-91 Corridor Improvement Project, as more particularly described herein. The remaining proceeds of the Series 2013 Bonds will be used to (i) pay capitalized interest on the Series 20 13A Bonds, (ii) make deposit to the Senior Lien Bond Reserve Fund, and (iii) pay certain Costs of Issuance of the Series 2013 Bonds, all as more fully described herein. See "ESTIMATED SOURCES AND USES OF BOND PROCEEDS." This cover page contains information for quick reference only. It is not a summary of the Series 2013 Bonds. Potential ·nvestors must read the entire Official Statement to obtain information essential to making an informed investment decision. Investment \the Series 2013 Bonds is subject to certain risks. See "RISK FACTORS" herein. NEITHER THE FULL 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 57023390.6 40
THE COMMISSION TO THE EXTENT OF THE PLEDGE OF THE REVENUE, IS PLEDGED TO THE PAYMENT OF THE PRINCIPAL OR INTEREST OF THE SERIES 2013 BONDS. The Series 2013 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 ~& Krieger LLP, Riverside, California, the Commission's General Counsel. Certain legal matters will be passed upon for the Under ·s by Stradling Yocca Carlson & Rauth, a Professional Corporation, Newport Beach, California. lt is anticipated that the Series """v 13 Bonds will be available for delivery through the book-entry facilities of DTC on or about June_, 2013. Bank of America Merrill Lynch Goldman, Sachs & Co. J.P. Morgan Dated: , 2013 ' Preliminary; subject to change. 57023390.6 41
Maturity Date (June 1) $ __ $ __ Maturity (June 1) MATURITY SCHEDULE* SERIES 2013A BONDS CUSJP(IJ Principal Amount Interest Rate Yield Price (Base ) _ __ %Term Bond due June 1, 20_-Yield-%-CUSlP _ __ %Term Bond due June 1, 20_-Yield- %-CUSJP Initial Principal Amount SERIES 2013B BONDS Yield to Maturity Maturity Value Initial Offering Price per $5,000 in Maturity Amount • CUSIP(IJ *Preliminary, subject to change. (I) CUSIP numbers have been assigned to these issues by CUSIP Global Services, managed by Standard & Poor's Services LLC on behalf of The American Bankers Association, and are included solely for the convenience of the owners of the Series 2013 Bonds. Neither the Commission nor the Underwriters shall be responsible for the selection or correctness of the CUSIP numbers set forth herein. The CUSIP number for a specific maturity is subject to being changed after the issuance of the Series 2013 Bonds as a result of various subsequent actions, including but not limited to, a refunding in whole or in part of such maturity, or as a result of the procurement of secondary market portfolio insurance or other similar enhancement by investors that is applicable to all or a portion ofthe Series 2013 Bonds. 57023390.6 42
57023390.6 Riverside SR-91 Corridor Improvement Project lt:r:A;;thtf !¢Jt~r "-<)'\ :./ ,.,.. r"") \,!., ! td·J(~l:f";' ''(J ' ~rm V..:.w " -Art~fti'L)ti!Jf;ff'';l/ Hft) t }'ti 1J.h··~ ~ ~t~ • , •.• ..,,. c,. ~ ,·· a~~ ... \_ ~ r) ~~tl-~-., ,....,._..,. ---' .' f $.;.-::;; ~~ ~ o».r ...... 'flr7ior0f • ~.,, ,):"/A , ' • ;~~ 0 43
RIVERSIDE COUNTY TRANSPORTATION COMMISSION BOARD MEMBERS Karen Spiegel (City of Corona), Chair Marion Ashley (County of Riverside), 1st Vice Chair Daryl R. Busch (City ofPerris), 2nd Vice Chair John J. Benoit (City of Riverside) Kevin Jeffries (County of Riverside) Jeff Stone (County of Riverside) John F. Tavaglione (County of Riverside) Bob Botts (City of Banning) Roger Berg (City of Beaumont) Joseph DeConinck (City ofBlyth) Ella Zanowic (City of Calimesa) Mary Craton (City of Canyon Lake) Greg Pettis (City of Cathedral City) Steven Hernandez (City of Coachella) Scott Matas (City of Desert Hot Springs) Adam Rush (City ofEastvale) Lany Smith (City of Hemet) Douglas Hanson (City oflndian Wells) Glenn Miller (City oflndio) Frank Johnston (City of Jurupa Valley) Teny Henderson (City of La Quinta) Bob Magee ((City ofLake Elsinore) Scott Mann (City ofMenifee) Tom Owings (City ofMoreno Valley) Rick Gibbs (City ofMurrieta) Berwin Hanna (City ofNorco) Jan Harnik (City ofPalm Desert) Ginny Foat (City ofPalm Springs) Ted Weill (City of Rancho Mirage) Steve Adams (City of Riverside) Andrew Kotyuk (City of San Jacinto) Ron Roberts (City of Temecula) Ben Benoit (City of Wildomar) Basem Muallem (Caltrans) MANAGEMENT Executive Director Anne Mayer Deputy Executive Director John Standiford Chief Financial Officer Theresia Trevino Toll Program Director Michael Blomquist SPECIAL SERVICES Financial Advisor Fieldman, Rolapp & Associates Irvine, California Bond Counsel Orrick, Henington & Sutcliffe LLP San Francisco, California 57023390.6 Disclosure Counsel Fulbright & Jaworski L.L.P. Los Angeles, California 44 Trustee The Bank ofNew York Mellon Trust Company, N.A. Los Angeles, California
No dealer, salesman or any other person has been authorized by the Riverside County Transportation Commissi (the "Commission") or the Underwriters of the Series 2013 Bonds (the "Underwriters") to give any infonnation ol 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 Series 2013 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 Series 2013 Bonds. Neither the delivery of this Official Statement nor the sale of any of the Series 2013 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 infonnation. IN CONNECTION WITH THIS OFFERING, THE UNDERWRITERS MAY OVERALLOT OR EFFEL. TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE SERIES 2013 BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL ON THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANY TJME. THE UNDERWRITERS MAY OFFER AND SELL THE SERIES 2013 BONDS TO CERTAIN DEALERS AND OTHERS AT PRICES LOWER THAN THE PUBLIC OFFERING PRICE STATED ON THE INSJDE COYER PAGE HEREOF AND SUCH PUBLIC OFFERING PRICE MAY BE CHANGED FROM TIME TO TIME BY THE UNDERWRITERS. 57023390.6 45
FORWARD-LOOKING STATEMENTS Cet1ain statements included or incorporated by reference in this Official Statement constitute forward-looking .,tatements. Such statements are generally identifiable by the terminology used such as "plan," "expect," "estimate," "project," "budget," "forecast," "assume" and other similar words. The achievement of certain results or other expectations contained in such forward-looking statements involve known and unknown risks, uncertainties, assumptions 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 do or do not occur. THE ACHIEVEMENT OF CERTAIN RESULTS OR OTHER EXPECTATIONS CONTAINED IN SUCH FORWARD LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS WHICH MAY CAUSE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS DESCRlBED TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. THE COMMISSION DOES NOT PLAN TO ISSUE ANY UPDATES OR REVISIONS TO THOSE FORWARD-LOOKING STATEMENTS IF OR WHEN ANY OF ITS EXPECT A TlONS, OR EVENTS, CONDITIONS OR CIRCUMSTANCES ON WHICH SUCH STATEMENTS ARE BASED DO OR DO NOT OCCUR. 57023390.6 46
TABLE OF CONTENTS Page INTRODUCTION ....................................................................................................................................... I General ............................................................................................................................................ ! Sources of Payment and Security ................................................................................................... I The Project ...................................................................................................................................... 2 Traffic and Revenue Study ............................................................................................................. 4 Report of the General Engineering Consultant ............................................................................... 4 Additional Senior Lien Bonds and Parity Obligations .................................................................... 5 The Comtn iss ion ............................................................................................................................. 5 Investn1ent Risks ............................................................................................................................. 5 THE SERIES 2013 BONDS ........................................................................................................................ 5 General ............................................................................................................................................ 5 Book-Entry System ......................................................................................................................... 6 Reden1ption ..................................................................................................................................... 6 SOURCES OF PAYMENT AND SECURITY FOR THE SERIES 2013 BONDS .................................... 9 Sources of Payn1ent. .............................................................................................................. · .......... 9 Funds and Accounts; Flow of Funds ............................................................................................. 10 2013 Bonds Reserve Account ....................................................................................................... 19 Rate Covenant and Annual Budget.. ............................................................................................. 19 Additional Senior Lien Bonds and Parity Obligations .................................................................. 21 Subordinated Obligations; TIFIA Loan ........................................................................................ 22 RIVERSIDE COUNTY TRANSPORTATION COMMISSION .............................................................. 22 General .................................................................................................................... .-..................... 22 The Transportation Expenditure Plan ........................................................................................... 23 Comn1issioners .............................................................................................................................. 24 Executive Staff. ............................................................................................................................. 24 THE RIVERSIDE SR-91 CORRIDOR IMPROVEMENT PROJECT ..................................................... 25 CONSTRUCTION OF THE PROJECT .................................................................................................... 26 Components of the Project. ........................................................................................................... 26 Construction Contract ................................................................................................................... 26 Design-Builder .............................................................................................................................. 28 Right-of-Way Acquisition ............................................................................................................ 28 Environmental Studies .................................................................................................................. 28 Project Costs and Cost Contingencies .......................................................................................... 29 OPERATION AND MAINTENANCE OF THE PROJECT .................................................................... 29 Electronic Tolling ......................................................................................................................... 30 Toll Rates ...................................................................................................................................... 31 Toll Violations Enforcement ......................................................................................................... 31 Independent Operation and Maintenance Study ........................................................................... 31 PROJECTED FLOW OF FUNDS ............................................................................................................. 31 TRAFFIC AND REVENUE EST1MATES ............................................................................................... 32 57023390.6 47
TABLE OF CONTENTS (continued) Page PLAN OF FINANCE ................................................................................................................................. 32 Estimated Sources and Uses of Bond Proceeds ............................................................................ 33 Project Sources and Uses of Funds ............................................................................................... 34 Commission Funding .................................................................................................................... 34 TIFIA Loan ................................................................................................................................... 35 Series 2013 Bonds Delivery Contingency .................................................................................... 39 DEBT SERVICE REQUIREMENTS ........................................................................................................ 40 ESTIMATED CASH FLOW AND DEBT SERVICE COVERAGE ........................................................ 40 RISK FACTORS ....................................................................................................................................... 42 General .......................................................................................................................................... 42 Construction Risks ........................................................................................................................ 44 Operating Risks ............................................................................................................................. 45 FINANCIAL STATEMENTS ................................................................................................................... 46 LITIGATION ............................................................................................................................................. 47 LEGAL MATTERS ................................................................................................................................... 47 TAX MATTERS ........................................................................................................................................ 47 CONTINUING DISCLOSUR£ ................................................................................................................. 49 RATINGS .................................................................................................................................................. 49 FINANCIAL ADVISOR ........................................................................................................................... 50 UNDER WRITING .................................................................................................................................... 50 OTHER MATTERS ................................................................................................................................... 50 APPENDIX A-COMMISSION AUDITED FINANCIAL STATEMENTS FOR FISCAL YEAR ENDED JUNE 30;2012 ................................................................................. A-1 APPENDIX B-RIVERSIDE COUNTY 91 EXPRESS LANES EXTENSION INVESTMENT GRADE STUDY ............................................................................. B-1 APPENDIX C-REPORT OF THE GENERAL ENGINEERING CONSULT ANT ........................... C-1 APPENDIX D-SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE ........................ D-1 APPENDIX E-SUMMARY OF CERTAIN PROVISIONS OF THE TIFIA LOAN AGREEMENT ........................................................................................................... E-1 APPENDIX F-FORM OF CONTINUING DISCLOSURE AGREEMENT ...................................... F-1 APPENDIX G-BOOK-ENTRY SYSTEM ......................................................................................... G-1 APPENDIX H-FORM OF BOND COUNSEL OPINION .................................................................. H-1 II 57023390.6 48
OFFICIAL STATEMENT relating to RIVERSIDE COUNTY TRANSPORTATION COMMISSION $-=-:---=-Toll Revenue Senior Lien Bonds, 2013 Series A $----,-----,,-Toll Revenue Senior Lien Bonds, 2013 Series B (Current Interest Obligations) (Capital Appreciation Obligations) INTRODUCTION General This Official Statement (the "Official Statement") contains certain information relating to the offering and sale by the Riverside County Transportation Commission (the "Commission") of its Toll Revenue Senior Lien Bonds, Series 2013A (the "Series 2013A Bonds") and its Toll Revenue Senior Lien Bonds, 2013 Series B (the "Series 2013B Bonds" and, together with the Series 20 13A Bonds, the "Series 2013 Bonds"). References to "Senior Lien Bonds" herein shall mean all bonds or other obligations identified as the Riverside County Transportation Commission Toll Revenue Bonds authorized by, issued in accordance with, and at any time Outstanding pursuant to the Indenture. As used in this Official Statement, the "Indenture" shall mean the Master Indenture, dated as of June I, 2013 (the "Master Indenture"), by and between the Commission and The Bank of New York Mellon Trust Company, N.A., as trustee (the "Trustee"), as supplemented by the First Supplemental Indenture, dated as of June l, 2013 (the "First Supplemental Indenture," and together with the Master Indenture, the "Indenture"), by and between the Commission and the Trustee, as the same may be amended or supplemented from time to time in accordance with the terms of the Master Indenture. Capitalized terms used in this Official Statement that are not otherwise defined herein have the meanings assigned to them in "APPENDIX D-SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE." This Official Statement contains, in par1, estimates and matters of opinion that are not intended as statements of fact, and no representation or warranty is made as to the correctness of such estimates and matters of opinion, or that they will be realized. This Official Statement speaks only as of its date, and the information contained herein is subject to change. Sources of Payment and Security The Series 2013 Bonds are special, limited obligations of the Commission payable solely from and secured solely by a first lien on, pledge of and security interest in the Trust Estate on an equal and ratable basis with any Parity Obligations issued in the future in accordance with the provisions of the Indenture, subject to the provisions of the Indenture permitting prior application thereof. The Trust Estate is comprised of (i) Toll Revenues, (ii) all interest or other income from investment of money in the Funds and Accounts established under the Indenture (excluding the Rebate Fund and any Fund or Account established to hold the proceeds of a drawing on any Credit Support Instrument), (iii) all Swap Revenues, and (iv) all amounts (including the proceeds of Obligations) held by the Trustee in each Fund and Account established under the Indenture (except for amounts on deposit in the Rebate Fund and amounts on deposit in any Fund or Account established to hold the proceeds of a 'Preliminary; subject to change. 57023390.6 49
drawing on any Credit Support Instrument). See "SOURCES OF PAYMENT AND SECURlTY FOR THE SERIES 2013 BONDS." The Series 2013 Bonds are also secured by amounts held in the 2013 Bonds Reserve Account within the Senior Line Bond Reserve Fund. On the date of delivery of the Series 2013 Bonds, proceeds of the Series 2013 Bonds in the amount of$ , representing the initial 2013 Bonds Reserve Requirement, will be deposited in the 2013 Bonds Reserve Account, and shall be applied pursuant to the Indenture to make up any shortfall in the payment of interest and/or principal and/or redemption price (excluding any redemption premium) due on the Series 2013 Bonds. Also, proceeds of the Series 20 13A Bonds in the amount of$ will be deposited in the 2013 Series A Capitalized Interest Account, which amount will be sufficient to pay interest on the Series 20 13A Bonds through and including _____ _ NEITHER THE FULL 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 OR INTEREST OF THE SERIES 2013 BONDS. The Project General. State Route 91 ("SR-91") is an east-west limited access highway running from the I-405 in Los Angeles at its western end to the interchange of I-215 and SR-60 in Riverside County on its eastern end. The existing SR-91 cross section typically consists of four general purpose lanes, varying in widthfrom 11 feet to 12 feet, as well as auxiliary lanes in each direction. In Orange County, two tolled express lanes ("OCTA SR-91 Express Lanes") are operated in each direction by the Orange County Transportation Authority ("OCTA"). The OCT A SR-91 Express Lanes are in the median area, beginning west of the SR-91/SR-55 interchange and terminating near the Riverside/Orange county line. These express lanes transition into one high occupancy vehicle ("HOV'') lane in each direction in Riverside County. Two major freeway facilities intersect the Project: the 1-15 and SR-71. The Riverside SR-91 Corridor Improvement Project (the "Project") will extend the OCTA SR-91 Express Lanes from the Orange County/Riverside County Line approximately eight miles to the 1-15/SR-91 Interchange in Riverside, California by constructing one general purpose lane in each direction from the SR-91 /SR-71 interchange to 1-15, and converting the existing HOY lanes into two tolled express lanes, ultimately providing five general purpose lanes and two tolled express lanes in each direction. The Project also includes a two-lane direct tolled connector approximately 2.8 miles in distance providing SR-91 tolled express lanes access/egress with 1-15 South. This direct tolled connector commences near Grand Avenue on SR-91, and ends on 1-15 South near Ontario Avenue in the City of Corona. All ofthe Commission sponsored tolled express lanes are referred to herein as the "RCTC SR-91 Express Lanes." The Commission will use the services of the existing OCTA SR-91 Express Lanes operator, Cofiroute USA, LLC ("Cofiroute" or the "Toll Operator"), to serve as operator of the RCTC SR-91 Express Lanes. Cofiroute currently is responsible for managing the OCT A SR-91 Express Lanes operation, which includes revenue collection, customer accounts, violation enforcement, violation processing, incident management and response, and first line maintenance of tolling and traffic equipment. Cofiroute will have the same responsibilities for the RCTC SR-91 Express Lanes. 57023390.6 2 50
For additional information regarding the Project, see "THE RIVERSIDE SR-91 CORRIDOR IMPROVEMENT PROJECT," "CONSTRUCTION OF THE PROJECT" and "OPERATION AND MAINTENANCE OF THE PROJECT" Plan of Finance. The total cost of the Project is estimated at $[1.35] billion. The Project will be financed with (i) direct cash contributions from revenues generate by the Measure A Sales Tax along with State Transportation Improvement Program funds of the Commission, (ii) a portion of the proceeds of the Series 2013 Bonds, (iii) a portion of the proceeds of the Commission's Sales Tax Revenue Bonds (Limited Tax Bonds) 2013 Series A (the "2013 Sales Tax Revenue Bonds"), and (iv) proceeds of the TlFlA Loan, all as more fully described herein. The delivery and sale of Series 2013 Bonds will be conditioned upon and contemporaneous with the delivery and sale of the 2013 Sales Tax Revenue Bonds in the approximate principal amount of $ and the closing of the TIFIA Loan Agreement providing for the TlFlA Loan. TIFIA Loan. The Commission will enter into the TIFlA Loan Agreement with the United States Department of Transportation acting by and through the Federal Highway Administrator (the "TJFJA Lender") in order to obtain a loan in the approximate amount of [$451.0] million (the "TIF!A Loan") under the Transportation Infrastructure Finance and Innovation Act. Proceeds of the TIFIA Loan, when drawn upon, are expected to be used to finance a portion of the costs ofthe Project. The TlFlA Loan will be evidenced by a toll revenue bond of the Commission issued pursuant to the Indenture and a Second Supplemental Indenture, dated as of June 1, 2013, by and between the Commission and the Trustee (the "TIFIA Bond"). Certain conditions must be met for the Commission to draw funds under the TIFIA Loan Agreement and the obligations of the TIFIA Lender to advance funds under the TIFIA Loan Agreement may be suspended or terminated. See "RISK FACTORS-Construction Risks-Conditions to Drawing on the TIFIA Loan Agreement." Under the Indenture, the TlFIA Bond will be secured by the Trust Estate on a basis subordinate to the Series 2013 Bonds, except as provided below. Upon the occurrence and during the continuance of any Bankruptcy Related Event of the Commission (as defined in the Indenture), the TlFIA Bond will, if the Owner of the TIFIA Bond is the TIFlA Lender or another federal governmental lender at such time, automatically and without action on the part of the TIFIA Lender or any other person immediately become and be of equal rank and in parity with the Senior Lien Bonds or Parity Obligations and will be entitled to all rights of an Owner of Senior Lien Bonds or Parity Obligations (including, without limitation, the right of payment pro rata with other Senior Lien Bonds or Parity Obligations pursuant to the Indenture). Upon such event, the money and investments held in the TJFIA Payment Fund allocable to the payment of the TIFIA Bond are required to be transferred by the Trustee to the Senior Lien Bond Fund. See "SOURCES OF PAYMENT AND SECURITY FOR THE SERIES 2013 BONDS-Subordinated Obligations; TJFIA Loan." Key Project Agreements The Commission is working in partnership with California Department of Transportation (Caltrans), Federal Highway Administration (FHWA) and OCTA to obtain required environmental permits for the Project, procure a design-builder, secure project financing, design and construction, and operate and maintain the tolled express lane facility. Summaries of the key Project agreements are provided below. FHW A/Caltrans/RCTC High Profile Project Agreement (HPPA). The Project has been designated a Major Project and a High Profile Project by the FHWA due to the Project cost exceeding $500 million, innovative financing through use of toll revenues, and the use of a federal Transportation Infrastructure Finance and Innovation Act (TIFIA) loan. This agreement outlines the roles, 57023390.6 3 51
responsibilities, and requirements of FHWA, Caltrans, and the Commission as it relates to oversight and risk management of the Project. RCTC/Corona Cooperative Agreement. The Project lies almost entirely within the City of Corona. This agreement outlines the roles, responsibilities, and obligations of the Commission and the City of Corona relative to Project implementation, including design, right-of-way (ROW), construction, and funding. One of the unique approaches outlined in the agreement is the delegation of in-process design reviews and construction independent quality assurance (JQA) from the City of Corona to the Commission. This approach is intended to mitigate the risk of third-party delay. The City of Corona will maintain final design and construction approval for improvements under its jurisdiction. RCTC/OCTA Cooperative Agreement (ORCA). The tolled express lanes will be interoperable with OCTA's existing SR-91 Express Lanes and share a common operator, Cofiroute. Under this cooperative agreement, the Commission and OCTA will use a common toll operator and agree-on cost and revenue sharing, toll policies, business rules, interoperability of technology, OCTA review of design plans and construction activities, and shared marketing activities. RCTC/Caltrans Toll Facility Agreement (TFA). This agreement, an amendment to the existing franchise agreement between Caltrans and OCTA, eliminated OCTA's tolling rights along the SR-91 Corridor in the Riverside County. This agreement is a follow-up to AB 1316, providing state franchise rights to the Commission and authorization to toll the SR-91 from the Orange County Line to 1-15. The agreement outlines the Commission's leasehold rights to Caltrans' right-of-way (ROW) and Caltrans' oversight role in the operations and maintenance of the SR-91 express lanes. RCTC/Caltrans Design-Build Cooperative Agreement. This agreement outlines the roles and responsibilities of the Commission and Caltrans relative to Project implementation, including design, ROW, construction, and funding. The agreement also outlines the respective agency roles in providing design reviews, construction oversight, and Project IQA and approvals. RCTC/Riverside County Agreement. This agreement outlines the roles, responsibilities, and obligations of the Commission and Riverside County relative to Project implementation, including design, right-of-way (ROW), construction, and funding. One of the unique approaches outlined in the agreement is the delegation of in-process design reviews and construction independent quality assurance (JQA) from the County to the Commission. This approach is intended to mitigate the risk of third-party delay. Riverside County will maintain final design and construction approval for improvements under its jurisdiction. Traffic and Revenue Study The Commission has engaged Stantec Consulting Services Inc. ("Stantec") to be the traffic consultant for the Project. Stantec has prepared the "Riverside County 91 Express Lanes Extension Investment Grade Study" dated May 9, 2012, as supplemented by Stantec's Supplemental Letter dated May _, 2013 (the "Study"), which is attached hereto as APPENDIX B. The traffic and revenue projections reached in the Study are based on various assumptions and the Study should be read in its entirety. See "TRAFFIC AND REVENUE ESTIMATES." Report of the General Engineering Consultant The Commission has engaged Parsons Transportation Group ("Parsons") to prepare a Report of the General Engineering Consultant (the "Engineering Report") to document and describe the location, preliminary engineering design features, total project cost estimates, projected operation and 57023390.6 4 52
maintenances expenses, renewal and replacement expenses and the procurement schedule of the Project. The Engineering Rep01t is included as APPENDIX C to this Official Statement. Matters addressed in the Engineering Report are based on various assumptions and the Engineering Report should be read in its entirety. Additional Senior Lien Bonds and Parity Obligations The Indenture permits the Commission, subject to certain conditions, to issue from time to time additional Senior Lien Bonds or Parity Obligations secured on a parity with the Series 2013 Bonds. Furthennore, upon the occurrence of a Bankruptcy Related Event while the TIFIA Lender or another federal governmental lender owns the TIFIA Bond, the TIFIA Bond will be deemed to be a Parity Obligation. In such event, the TIFIA Bond would be secured by and payable from the Trust Estate on a parity with the Series 2013 Bonds and any other Outstanding Bonds. The Commission Riverside County Transportation 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 I30000 et seq.) (as amended, the "Act"). The Commission was established in 1977 to oversee the funding and coordination of all public transp01tation services within the County of Riverside (the "County"). The Commission serves as the tax authority and implementation agency for the voter-approved Measure A Transportation Improvement Program, which imposes a half-cent sales tax within the County to fund transportation improvements. The Commission has also been designated as the congestion management agency (the "CMA") for the County. As the CMA, the Commission has developed a congestion management program that more effectively utilizes transportation funds by linking land use, transportation and air quality efforts. The Commission serves as the service authority for freeway emergencies and operates the freeway service patrol (the "FSP") for the County. The results of these programs -597 call boxes along the County roadways and 21 FSP tow trucks providing assistance to more than 43,100 motorists annually -are among the most visible of the Commission's programs. For additional infonnation regarding the Commission, see "THE COMMISSION." Investment Risks Investment in the Series 2013 Bonds involves certain risks, some of which are discussed throughout this Official Statement. The statements contained in this Official Statement, and in other information provided by the Commission, that are not purely historical, are forward-looking statements, including statements regarding the Commission's expectations, hopes, intentions or strategies regarding the future. Readers should not place undue reliance on forward-looking statements. All forward-looking statements included in this Official Statement are based on infonnation available to the Commission on the date hereof, and the Commission assumes no obligation to update any such forward-looking statements. See "RISK FACTORS" for a discussion of several investment considerations that should also be considered in evaluating an investment in the Series 2013 Bonds. 57023390.6 5 53
THE SERIES 2013 BONDS General The Series 2013A Bonds will be dated their date of delivery, will bear interest from that date at the· rates per annum, computed on the basis of a 360-day year comprised of twelve 30-day months, and will mature on June I in the years shown on the inside cover of this Official Statement. Each Series 20 13A Bond will bear interest from the latest of: (i) its delivery 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 Series 2013A 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. The Series 2013B Bonds will not bear current interest; each Series 2013B Bond will increase in value by the accumulation of earned interest from its initial principal amount shown on the inside cover of this Official Statement on the date of issuance thereofto the Maturity Value thereof at maturity, assuming in any period that the value increases in equal daily amounts on the basis of a 360-day year of twelve 30-day months. The interest on the Series 2013B Bonds will be compounded commencing on December 1, 2013, and thereafter on June I and December 1 in each year to maturity [or the date of redemption prior thereto]. The principal of, premium, if any, and interest on the Series 2013A Bonds and the Accreted Value of the Series 2013B Bonds will be payable in lawful currency of the United States of America. While the Series 20 I 3 Bonds are Book-Entry Obligations, payment of debt service (including the Accreted Value of the Series 2013B Bonds) will be made to the Securities Depository or its Nominee, and in accordance with arrangements among the Commission, the Trustee and the Securities Depository. During any period in which the Series 2013 Bonds are not Book-Entry Obligations, the principal of and premium, if any, or the Accreted Value on all such Series 2013 Bonds will be payable by wire or check at the Principal Office of the Trustee upon the presentation and surrender of such Series 2013 Bonds as the same become due and payable, and the interest on the Series 20 13A Bonds will be paid by wire or check drawn upon the Trustee and mailed on the applicable interest payment date to the persons in whose names the Series 20 I 3A Bonds are registered on the registration books maintained by the Trustee at the close of business on the record date for such interest payment. Book-Entry System -/ DTC will act as securities depository for the Series 2013 Bonds. The Series 2013 Bonds will be issued as fully-registered bonds registered in the name of Cede & Co. (DTC's partnership nominee). One fully-registered Series 2013 Bond will be issued for each maturity of the Series 2013 Bonds, each in the aggregate principal amount of such maturity, and will be deposited with DTC. Ultimate purchasers of Series 2013 Bonds will not receive physical certificates representing their interest in the Series 2013 Bonds. Payment of the principal of and interest on the Series 2013 Bonds will be made directly to DTC, or its nominee, Cede & Co., by the Trustee so long as DTC or Cede & Co. is the registered owner of the Series 2013 Bonds. Disbursement of such payments to DTC's Participants is the responsibility of DTC and disbursement of such payments to the Beneficial Owners is the responsibility of DTC's Participants and Indirect Participants. See "APPENDIX G-BOOK-ENTRY SYSTEM." 57023390.6 6 54
Redemption Optional Redemption of Series 2013A Bonds. The Series 20 13A Bonds maturing on or before June I, 20 _ shall not be subject to redemption prior to their respective stated maturities. The Series 20 13A Bonds maturing on or after June I, 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 I, 20 _ at the principal amount of Series 20 13A Bonds called for redemption plus accrued interest to the date fixed for redemption, without premium. Mandatory Sinking Fund Redemption of Series 2013A Bonds. The Series 20 13A Bonds maturing on June I, 20 _ and June I, 20 _, respectively, shall also be subject to mandatory redemption prior to their respective stated maturities, in part, by lot, from Sinking Fund Installments on each June I a Sinking Fund Installment is due as specified below, in the principal amount equal to the Sinking Fund Installment due on such date and at a redemption price equal to I 00% of the principal amount thereof, plus accrued but unpaid interest to the redemption date, without premium. Series 20 13A Bonds Maturing June 1, __ _ Sinking Fund Installment Dates (June 1) (I) (I) Final Maturity. Sinking Fund 1 nstallments Series 2013A Bonds Maturing June I, __ Sinking Fund Installment Dates (June I) (I) (I) Final Maturity. Sinking Fund Installments [Series 2013B Bonds Not Subject to Redemption. The Series 20 13B Bonds are not subject to redemption prior to maturity.] Selection of Series 2013A Bonds to be Redeemed. The Commission will designate which maturities of Series 20 13A Bonds are to be called for redemption and what Sinking Fund Installments are to be reduced as allocated to such redemptions. Whenever provision is made in the Indenture for the redemption of less than all of the Series 20 13A Bonds maturing on a specific maturity date, the Trustee will select the Series 20 13A Bonds of such maturity to be redeemed, from the Outstanding Series 20 13A Bonds of such maturity not previously called for redemption, in minimum denominations of $5,000 (of principal), by lot in any manner which the Trustee in its sole discretion will deem appropriate. In the 57023390.6 7 55
event Series 20 13A Term Bonds are designated for redemption, the Commission may designate the Sinking Fund Installments, or portions thereof, that are to be reduced as allocated to such redemption. The Trustee will promptly notify the Commission in writing of the Series 20 13A Bonds so selected for redemption. Notwithstanding the foregoing paragraph, so long as the Series 20 13A Bonds are registered in the name of Cede & Co., as nominee of DTC, and less than all of such Series 20 13A Bonds within a maturity are being redeemed, the Series 20 13A Bonds to be redeemed will be determined by DTC. DTC's current practice is to determine by lot the amount of the interest of each DTC Participant in such maturity to be called for redemption and each DTC Participant is to then select by lot the ownership interest in each maturity to be redeemed. Neither the Commission nor the Trustee will have any responsibility to Direct Participants, Indirect Participants, or the persons for whom Direct Participants act as nominees, with respect to the providing of notice of redemption or the selection of Series 20 13A Bonds for redemption. See"-Book-Entry System" herein. Notice and Conditional Redemption. Unless otherwise specified in a Supplemental Indenture creating a Series of Obligations, each notice of redemption will be mailed by the Trustee, not less than twenty (20) nor more than sixty (60) days prior to the redemption date, to each Owner and to the MSRB. Notice of redemption to the Owners will be given by first class mail. Each notice of redemption will state the date of such notice, the date of issue of the Obligations to which such notice relates, the redemption date, the redemption price, the place or places of redemption (including the name and appropriate address or addresses of the Trustee), the CUSIP number (if any) of the maturity or maturities, and, in the case of Obligations to be redeemed in part only, the identity of the Obligations to be redeemed. Except in the case of conditional optional redemption, each such notice will also state that on said date there will become due and payable on each of said Obligations the redemption price thereof, together with interest accrued thereon to the date fixed for redemption, and that from and after such redemption date interest thereon will cease to accrue, and will require that such Obligations be then surrendered at the address or addresses of the Trustee specified in the redemption notice. Neither the Commission nor the Trustee will have any responsibility for any defect in the CUSIP number that appears on any Obligation or in any redemption notice with respect thereto, and any such redemption notice may contain a statement to the effect that CUSIP numbers have been assigned by an independent service for convenience of reference and that neither the Commission nor the Trustee will be liable for any inaccuracy in such numbers. Failure of any Owner to receive any notice of redemption or any defect therein will not affect the sufficiency of any proceedings for redemption. Any notice of optional redemption of the Obligations may be conditional, and if any condition stated in the notice of redemption will not have been satisfied on or prior to the redemption date, said notice will be of no force and effect and the Commission will not be required to redeem the Obligations thereby called for redemption, such Obligations shall not become due and payable, and the redemption will be cancelled and the Trustee will within a reasonable time thereafter give notice, to the persons and in the manner in which the notice of redemption was given, that such condition or conditions were not met and that the redemption was cancelled. In addition, the Commission may, at its option, on or prior to the date fixed for optional redemption in any notice of redemption of the Obligations, rescind and cancel such notice of redemption by Written Request of the Commission to the Trustee, and any optional redemption of Obligations and notice thereof will be rescinded and cancelled and the Trustee will mail notice of such cancellation to the recipients of the notice of redemption being cancelled. Any optional redemption of Obligations and notice thereof will be rescinded and cancelled if for any reason on the date fixed for optional 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 Obligations called for optional redemption and such failure to optionally redeem the Obligations called for redemption will not be a default under the Indenture. 57023390.6 8 56
Purchase In Lieu of Redemption. In lieu of mandatory redemption from Sinking Fund Installments, the Commission may surrender to the Trustee for cancellation Series 20 13A Term Bonds purchased on the open market and such Series 2013A Term Bonds will be cancelled by the Trustee. If any Series 20 l3A Term Bonds are so cancelled, the Commission may designate the Sinking Fund Installments or portions thereof that are to be reduced as allocated to such cancellation. SOURCES OF PAYMENT AND SECURITY FOR THE SERIES 2013 BONDS Sources of Payment Limited Obligations. The Series 2013 Bonds are special, limited obligations of the Commission payable solely from, and secured on an equal and ratable basis with other Senior Lien Bonds and Parity Obligations issued in the future solely by a first lien on and pledge of the Trust Estate, subject only to the provisions of the Indenture permitting the prior application thereof for the purposes and on the terms and conditions set forth in the Indenture. The Series 20 13 Bonds are not secured by a mortgage or deed of trust on, or other security interest in, the Project. 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 SERIES 2013 BONDS. Trust Estate. The "Trust Estate," as described in the Indenture, is comprised of (i) the Toll Revenues, (ii) all interest or other income from investment of money in the Funds and Accounts established under the Indenture (excluding the Rebate Fund and any Fund or Account established to hold the proceeds of a drawing on any Credit Support Instrument), (iii) all Swap Revenues, and (iv) all amounts (including the proceeds of Obligations) held by the Trustee in each Fund and Account established under the Indenture (except for amounts on deposit in the Rebate Fund and amounts on deposit in any Fund or Account established to hold the proceeds of a drawing on any Credit Support Instrument). The Trust Estate does not include Measure A Sales Tax Revenues, state or federal grant funds or any other revenues of the Commission beyond Toll Revenues and the other components of the Trust Estate described above. Toll Revenues. "Toll Revenues," as defined in the Indenture, means (i) toll revenues, user fees, fines, rents or other similar charges payable for use of the Toll Road, (ii) proceeds of insurance payable to or received by the Commission with respect to the Toll Road (whether by way of claims, return of premiums, ex gratia settlements or otherwise), including proceeds from business interruption insurance and loss of advance profits insurance, except for proceeds of fire and other casualty insurance that are actually applied or reserved for application to the repair, restoration or replacement of the Toll Road, (iii) proceeds of any condemnation awards with respect to the Toll Road, except to the extent actually applied or reserved for application to the replacement of the Toll Rod, (iv) liquidated damages for delayed completion payable to the Commission under a construction contract relating to the Toll Road or a portion thereof, except for the portion of such liquidated damages that is deposited to the Project Fund or an Account therein and applied or reserved for payment of Project Costs relating to the Toll Road or such portion during such period of delayed completion, (v) proceeds of credit support provided by the Toll Operator pursuant to the Operating Agreement, and (vi) any other incidental or related fees or charges; but excluding therefrom ROW Revenues (revenues from sale of excess right-of-way property) and cash advances representing deposits against future toll payments from users or potential users of the Toll Road. 57023390.6 9 57
Toll Road. "Toll Road," as defined in the Indenture, means any of the following: (a) general purpose toll lanes, (b) lanes or facilities where the tolls may be levied and may vary according to levels of congestion anticipated or experienced or according to the occupancy of the vehicle, (c) facilities using any combination of (a) and (b), and (d) facilities using any other tolling strategy the Commission may determine appropriate on a facility-by-facility basis, upon which the Commission has all right, power and authority pursuant to law to pursue tolls, as such toll lanes and facilities may from time to time be expanded, improved, upgraded, enlarged, or enhanced, but only to the extent that the Commission irrevocably designates in writing that such toll lanes and facilities and any expansion, improvement, upgrade, enlargement or enhancement constitutes a "Toll Road" generating "Toll Revenues" under the Indenture. "Toll Road" shall not include any Special Project. Initially, "Toll Road" initially means any such toll lanes and facilities (including structures, on-ramps, connector roads, bridges, and roadways that are on, necessary for, or related to the construction or operation ofthe Toll Road) on the portion ofSR-91 between the Orange and Riverside County line and Interstate 15 that constitute a part of the Riverside SR-91 Corridor Improvement Project. Revenue. "Revenue," as defined in the Indenture, means (i) Toll Revenues; (ii) all interest or other income from investment of money in the Funds and Accounts established hereunder (excluding the Rebate Fund and any Fund or Account established to hold the proceeds of a drawing on any Credit Support Instrument); and (iii) all Swap Revenues. Net Revenue. "Net Revenue," as defined in the Indenture, means for any Fiscal Year, Revenue less Operation and Maintenance Expenses for that Fiscal Year (excluding, in such calculations, any extraordinary or one-time revenues from Revenue and any extraordinary or one-time expenses from Operation and Maintenance Expenses when determining Net Revenue for such Fiscal Year), in (a) the audited financial statement of the Borrower for Fiscal Years for which audited financial statements are available, (b) to the extent that audited financial statements are not available, the unaudited financial statements of the Commission for Fiscal Years for which unaudited financial statements are available or (c) to the extent that neither audited financial statements nor unaudited financial statements are available, projections of the Commission. Priority of Liens. The Series 2013 Bonds constitute Senior Lien Bonds under the Indenture. All Senior Lien Bonds and Parity Obligations shall be of equal rank without preference, priority or distinction of any Senior Lien Bonds and Parity Obligations over any other Senior Lien Bonds and Parity Obligations. The Commission's obligation to repay the TIFIA Bond is secured by a lien on, pledge of and security interest in the Trust Estate that is subordinate and junior to the lien on, pledge of and security interest in the Trust Estate securing the Series 2013 Bonds; provided, however, that upon the occurrence of a Bankruptcy Related Event under the Indenture, the TlFIA Bond will become a Parity Obligation payable from and secured by the Trust Estate on a parity with the Series 2013 Bonds. See "RISK FACTORS-Dilution of Senior Lien Security Upon Bankruptcy Related Event." Funds and Accounts; Flow of Funds The Indenture establishes the following Funds and Accounts, which are established and created and maintained in trust by the Trustee: • Toll Revenue Fund • Project Fund, and within the Project Fund, the Senior Lien Bonds Account, the Permitted Second Lien Obligations Account, the Subordinate Obligations Account, the Sales Tax Revenue Bonds Account and the Commission Equity Account • Rebate Fund 10 57023390.6 58
" S e n i o r L i e n B o n d F u n d a n d , w i t h i n t h e S e n i o r L i e n B o n d F u n d , t h e S e n i o r L i e n B o n d I n t e r e s t P a y m e n t A c c o u n t a n d t h e S e n i o r L i e n B o n d P r i n c i p a l P a y m e n t A c c o u n t " S e n i o r L i e n B o n d R e s e r v e F u n d " P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s F u n d a n d , w i t h i n t h e P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s F u n d , t h e P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s I n t e r e s t P a y m e n t A c c o u n t a n d t h e P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s P r i n c i p a l P a y m e n t A c c o u n t " P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s R e s e r v e F u n d " S u b o r d i n a t e O b l i g a t i o n s P a y m e n t F u n d a n d t h e S u b o r d i n a t e O b l i g a t i o n s R e p a y m e n t A c c o u n t t h e r e i n " S u b o r d i n a t e O b l i g a t i o n s R e s e r v e F u n d " R e p a i r a n d R e h a b i l i t a t i o n F u n d " C a p i t a l E x p e n d i t u r e s F u n d " R e s i d u a l F u n d " S u r p l u s F u n d T h e I n d e n t u r e a l s o e s t a b l i s h e s t h e O p e r a t i o n a n d M a i n t e n a n c e F u n d , w h i c h i s c r e a t e d a n d m a i n t a i n e d b y t h e C o m m i s s i o n . T h e f u n d s i n t h e O p e r a t i o n a n d M a i n t e n a n c e F u n d s h a l l b e a p p l i e d b y t h e C o m m i s s i o n t o p a y O p e r a t i o n a n d M a i n t e n a n c e E x p e n s e s i n a c c o r d a n c e w i t h t h e t e r m s o f t h e I n d e n t u r e . D e p o s i t o f T o l l R e v e n u e s . A s l o n g a s a n y S e n i o r L i e n B o n d s , P a r i t y O b l i g a t i o n s , R e s e r v e F a c i l i t y C o s t s , P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s , o r S u b o r d i n a t e O b l i g a t i o n s r e m a i n u n p a i d , t h e C o m m i s s i o n a s s i g n s a n d w i l l c a u s e T o l l R e v e n u e s t o b e t r a n s m i t t e d b y t h e T o l l O p e r a t o r o n a t l e a s t a w e e k l y b a s i s d i r e c t l y t o t h e T r u s t e e f o r d e p o s i t i n t h e T o l l R e v e n u e F u n d . T o l l R e v e n u e F u n d . F r o m a n d a f t e r t h e S u b s t a n t i a l C o m p l e t i o n D a t e , e x c e p t f o r a m o u n t s t o b e d e p o s i t e d i n o t h e r F u n d s o r A c c o u n t s p u r s u a n t t o t h e I n d e n t u r e , t h e C o m m i s s i o n w i l l p r o m p t l y d e p o s i t o r c a u s e t o b e d e p o s i t e d i n t o t h e T o l l R e v e n u e F u n d a l l R e v e n u e a n d t r a n s f e r s f r o m o t h e r F u n d s o r A c c o u n t s a s r e q u i r e d b y t h e t e r m s o f t h e I n d e n t u r e . S u b j e c t o n l y t o t h e p r o v i s i o n s o f t h e I n d e n t u r e p e r m i t t i n g t h e a p p l i c a t i o n t h e r e o f f o r o r t o t h e p u r p o s e s a n d o n t h e t e r m s a n d c o n d i t i o n s s e t f o r t h i n t h e I n d e n t u r e , t h e T r u s t e e s h a l l b e e n t i t l e d t o a n d s h a l l c o l l e c t a n d r e c e i v e a l l o f t h e R e v e n u e , a n d a n y R e v e n u e c o l l e c t e d o r r e c e i v e d b y o r o n b e h a l f o f t h e C o m m i s s i o n s h a l l b e d e e m e d t o b e h e l d , a n d t o h a v e b e e n c o l l e c t e d o r r e c e i v e d , b y o r o n b e h a l f o f t h e C o m m i s s i o n a s t h e a g e n t o f t h e T r u s t e e a n d s h a l l f o r t h w i t h b e p a i d b y t h e C o m m i s s i o n t o t h e T r u s t e e . O n e a c h M o n t h l y F u n d i n g D a t e f r o m a n d a f t e r t h e S u b s t a n t i a l C o m p l e t i o n D a t e , s u b j e c t t o c e r t a i n r e s t r i c t i o n s s e t f o r t h i n t h e I n d e n t u r e , i n c l u d i n g t h e d e l i v e r y o f a F u n d s T r a n s f e r C e r t i f i c a t e b y t h e C o m m i s s i o n ( t o t h e e x t e n t r e q u i r e d ) a n d t h e a b s e n c e o f a n y E v e n t o f D e f a u l t , t h e T r u s t e e s h a l l m a k e t h e f o l l o w i n g t r a n s f e r s a n d p a y m e n t s f r o m t h e T o l l R e v e n u e F u n d i n t h e a m o u n t s , a t t h e t i m e s a n d o n l y f o r t h e p u r p o s e s s p e c i f i e d b e l o w a n d i n t h e f o l l o w i n g o r d e r o f p r i o r i t y ( i t b e i n g a g r e e d t h a t n o a m o u n t s h a l l b e t r a n s f e r r e d o n a n y d a t e p u r s u a n t t o a n y c l a u s e b e l o w u n t i l a m o u n t s s u f f i c i e n t a s o f t h a t M o n t h l y F u n d i n g D a t e ( t o t h e e x t e n t a p p l i c a b l e ) f o r a l l t h e p u r p o s e s s p e c i f i e d u n d e r t h e p r i o r c l a u s e s s h a l l h a v e b e e n w i t h d r a w n o r s e t a s i d e ) : F i r s t , o n e a c h M o n t h l y F u n d i n g D a t e , t o t h e O p e r a t i o n a n d M a i n t e n a n c e F u n d , a n a m o u n t n e c e s s a r y t o i n c r e a s e t h e b a l a n c e o f t h e O p e r a t i o n s a n d M a i n t e n a n c e F u n d t o a n a m o u n t e q u a l t o t h e 5 7 0 2 3 3 9 0 . 6 I I 5 9
Operation and Maintenance Expenses then due and payable, plus [one-sixth][NOT ONE-TWELFTH?] of the Operations and Maintenance Expenses projected in accordance with the most recently-adopted annual budget of the Commission to be due and payable during the next succeeding calendar year; Second, on each Monthly Funding Date, any payments then due and payable by the Commission to the Rebate Fund or any similar rebate fund established with respect to any future tax-exempt borrowing transaction; Third, (x) on each Monthly Funding Date and on each other date on which the following amounts shall be due and payable, to the Senior Lien Bond Interest Payment Account the sum of (A)( I) in the case of outstanding Senior Lien Bonds or Parity Obligations with semiannual interest payment dates, one-sixth (I /6) of the amount of the interest payable on such Senior Lien Bonds and Parity Obligations on the next interest payment date; (2) in the case of outstanding Senior Lien Bonds or Parity Obligations with quarterly interest payment dates, one-fourth (1/4) of the amount of the interest payable on such Senior Lien Bonds and Parity Obligations on the next interest payment date; and (3) in the case of outstanding Senior Lien Bonds or Parity Obligations with monthly interest payment dates, the amount of interest payable on such Senior Lien Bonds and Parity Obligations on the next interest payment date; plus (B) the · sum of any continuing shortfall in transfers required to have been made on any preceding Monthly Funding Date and any amounts transferred from the Senior Lien Bond Interest Payment Account and not repaid; plus (C) if such Monthly Funding Date is also an interest payment date or the last Monthly Funding Date before an interest payment date on such Senior Lien Bonds or Parity Obligations, any other amount required to make the amount credited to the Senior Lien Bond Interest Payment Account equal to the amount payable on the Senior Lien Bonds and Parity Obligations on such interest payment date; and (y) on each Monthly Funding Date, to the applicable Swap Parties, scheduled Hedging Obligations due under any Qualified Swap Agreements, if any, net of any scheduled amounts payable to the Commission with respect to such scheduled Hedging Obligations; Fourth, on each Monthly Funding Date and on each other date on which the following amounts shall be due and payable, commencing twelve months before the first annual principal payment date (including any mandatory sinking fund redemption date) or six months before the first semi-annual principal payment date (including any mandatory sinking fund redemption date), to the Senior Lien Bond Principal Payment Account, the sum of (A)( I) in the case of outstanding Senior Lien Bonds or Parity Obligations with annual principal or mandatory sinking fund payment dates, one-twelfth (1 112) of the principal and mandatory sinking fund redemptions due on the Senior Lien Bonds and Parity Obligations; and (2) in the case of outstanding Senior Lien Bonds or Parity Obligations with semi-annual principal or mandatory sinking fund payment dates, one-sixth (I /6) of the principal and mandatory sinking fund redemptions due on the Senior Lien Bonds and Parity Obligations; and (B) the sum of any shortfall in transfers required to have been made on any previous Monthly Funding Date, plus any amounts transferred from the Senior Lien Bond Principal Payment Account and not repaid; and (C) if the Monthly Funding Date is also a principal payment date (or mandatory sinking fund redemption date) or the last Monthly Funding Date before a principal payment date (or mandatory sinking fund redemption date), any other amount required to make the amount credited to the Senior Lien Bond Principal Payment Account equal to the amount of principal due on such principal payment date or mandatory sinking fund redemption date; Fifth, on each Monthly Funding Date, to the Senior Lien Bond Reserve Fund (or the applicable Account therein) the amount necessary so that the balance therein equals the applicable Senior Lien Bond Reserve Requirement calculated as of the most recent Calculation Date; provided, however, that in the event that the Trustee shall have withdrawn moneys in the Senior Lien Bond Reserve Fund or any Account therein for the purpose of paying principal of or interest on the applicable Senior Lien Bonds or Parity Obligations when due as provided in the Indenture, the Trustee shall also deposit to the Senior Lien 57023390.6 12 60
Bond Reserve Fund or the applicable Account therein, on each of the next twelve Monthly Funding Dates after such withdrawal, an amount equal to one-twelfth (I I 12'11) of the aggregate amount of each such unreplenished withdrawal until the amount on deposit in the Senior Lien Bond Reserve Fund (or the applicable Account therein) is equal to the applicable Senior Lien Bond Reserve Requirement; provided further however, that in the event such requirements cannot be fully funded, the funds available shall be transferred to each Account in the Senior Lien Bond Reserve Fund ratably in accordance with its respective shortfall; Sixth, (x) on each Monthly Funding Date and on each other date on which the following amounts shall be due and payable, to the Permitted Second Lien Obligations Interest Payment Account the sum of (A)( I) in the case of outstanding Permitted Second Lien Obligations with semiannual interest payment dates, one-sixth (1/6) ofthe amount of the interest payable on such Permitted Second Lien Obligations on the next interest payment date; (2) in the case of outstanding Permitted Second Lien Obligations with quarterly interest payment dates, one-fourth (1 /4) of the amount of the interest payable on such Permitted Second Lien Obligations on the next interest payment date; and (3) in the case of outstanding Permitted Second Lien Obligations with monthly interest payment dates, the amount of interest payable on such Permitted Second Lien Obligations on the next interest payment date; plus (B) the sum of any continuing shortfall in transfers required to have been made on any preceding Monthly Funding Date and any amounts transferred from the Permitted Second Lien Obligations Jnterest Payment Account and not repaid; plus (C) if such Monthly Funding Date is also an interest payment date or the last Monthly Funding Date before an interest payment date on such Permitted Second Lien Obligations, any other amount required to make the amount credited to the Permitted Second Lien Obligation Interest Payment Account equal to the amount payable on the Permitted Second Lien Obligations on such interest payment date, and (y) on each Monthly Funding Date, to the applicable Swap Parties, scheduled payments due under any Hedging Obligations, if any, net of any scheduled amounts payable to the Commission with respect to such scheduled Hedging Obligations, under any Swaps entered into in connection with such Permitted Second Lien Obligations; Seventh, on each Monthly Funding Date and on each other date on which the following amounts shall be due and payable, commencing twelve months before the first annual principal payment date (including any mandatory sinking fund redemption date) or six months before the first semi-annual principal payment date (including any mandatory sinking fund redemption date), to the Permitted Second Lien Obligations Principal Payment Account, the sum of (A)(1) in the case of outstanding Permitted Second Lien Obligations with annual principal or mandatory sinking fund payment dates, one-twelfth ( 1112) of the principal and mandatory sinking fund redemptions due on the Permitted Second Lien Obligations; and (2) in the case of outstanding Permitted Second Lien Obligations with semi-annual principal or mandatory sinking fund payment dates, one-sixth ( 1 /6) of the principal and mandatory sinking fund redemptions due on the Permitted Second Lien Obligations; and (B) the sum of any shortfall in transfers required to have been made on any previous Monthly Funding Date, plus any amounts transferred from the Permitted Second Lien Obligations Principal Payment Account and not repaid; and (C) if the Monthly Funding Date is also a principal payment date (or mandatory sinking fund redemption date) or the last Monthly Funding Date before a principal payment date (or mandatory sinking fund redemption date), any other amount required to make the amount credited to the Permitted Second Lien Obligations Principal Payment Account equal to the amount of principal due on such principal payment date or mandatory sinking fund redemption date; Eighth, on each Monthly Funding Date, to the Permitted Second Lien Obligations Reserve Fund, the amount necessary so that the balance therein equals the applicable Permitted Second Lien Obligations Reserve Requirement calculated as of the most recent Calculation Date; provided, however, that in the event that the Trustee shall have withdrawn moneys in the Permitted Second Lien Obligations Reserve Fund therein for the purpose of paying principal of or interest on the applicable Permitted Second Lien 57023390.6 13 61
Obligations when due as provided in the Indenture, the Trustee shall also deposit to the Permitted Second Lien Obligations Reserve Fund, on each of the next twelve Monthly Funding Dates after such withdrawal, an amount equal to one-twelfth ( 1/12'") of the aggregate amount of each such unreplenished withdrawal until the amount on deposit in the Pennitted Second Lien Obligations Reserve Fund is equal to the applicable Permitted Second Lien Obligations Reserve Requirement; Ninth, (x) on each Monthly Funding Date and on each other date on which the following amounts shall be due and payable, to the Subordinate Obligations Payment Fund the sum of (A)( I) in the case of outstanding Subordinate Obligations with semiannual payment dates, one-sixth (I /6) of the amount payable on such Subordinate Obligations on the next payment date (such transfers to commence, with respect to Subordinate Obligations in the form of or securing payment of a TIFIA Loan, on the Monthly Funding Date that is six months prior to the date on which TIFIA Mandatory Debt Service is first due and payable, and to equal one-sixth (I /6) of the TIFIA Mandatory Debt Service due on the immediately succeeding TIFIA Payment Date); and (2) in the case of outstanding Subordinate Obligations with monthly payment dates, the amount payable on the next payment date; plus (B) the sum of any continuing shortfall in transfers required to have been made on any preceding Monthly Funding Date and any amounts transferred from the Subordinate Obligations Payment Fund and not repaid; plus (C) if such Monthly Funding Date is also a payment date or the last Monthly Funding Date before a payment date, any other amount required to make the amount credited to the Subordinate Obligations Payment Fund equal to the amount payable on the Subordinate Obligations on such payment date; Tenth, on each Monthly Funding Date, to the Subordinate Obligations Reserve Fund, the amount, if any, necessary to increase the balance therein (taking into account amounts then on deposit therein) to the Subordinate Obligations Reserve Fund Required Balance; Eleventh, on each Monthly Funding Date, to the extent sufficient funds are then available after application of funds for the purposes specified in the prior clauses First through Tenth, to the Repair and Rehabilitation Fund, an amount equal to one-twelfth (1/12) of the Repair and Rehabilitation Fund Required Deposit for such Fiscal Year until such deposit is made in full; Twelfth, in the event the Commission has Subordinate Obligations outstanding in the form of or securing payment of a TIFIA Loan, on each Monthly Funding Date commencing on the Monthly Funding Date that is six months prior to the date on which TIFlA Scheduled Debt Service is first due and payable, to the Subordinate Obligations Payment Fund, an amount which equals one-sixth (1/6) of the TlFIA Scheduled Debt Service (excluding any amounts to be applied to TIFIA Mandatory Debt Service in accordance with the Tenth clause above) due on the immediately succeeding payment date for such TIFIA Loan; Thirteenth, on each Monthly Funding Date, to the extent sufficient funds are then available after application of funds for the purposes specified in the prior First through Twelfth clauses, to the Capital Expenditures Fund to the extent necessary to fund such Fund so that the balance therein (taking into account amounts then on deposit therein) equals the Capital Expenditures Fund Required Balance; Fourteenth, on each Monthly Funding Date and on each other date on which the following amounts shall be due and payable, to the extent sufficient funds are then available after application of funds for the purposes specified in the prior First through Thirteenth clauses, to the counterparties to Qualified Swap Agreements or Swaps, an amount equal to any Hedging Termination Obligations payable upon a termination of any such Qualified Swap Agreements or Swaps; and 57023390.6 14 62
Fifteenth, on each Monthly Funding Date, and only to the extent funds are then available after application of funds for the purposes specified in the prior First through Fourteenth clauses, on such Monthly Funding Date, to the Residual Fund, all remaining amounts, if any. To the extent that on any Calculation Date or any other date of determination requested by the Commission amounts on deposit in the Senior Lien Bond Reserve Fund are in excess of the Senior Lien Bond Reserve Requirement, or amounts in the Permitted Second Lien Obligations Reserve Fund are in excess of the applicable Permitted Second Lien Obligations Reserve Requirement, or amounts in the Subordinate Obligations Reserve Fund are in excess of the applicable Subordinate Obligations Reserve Requirement, or amounts in the Repair and Rehabilitation Fund are in excess of the Repair and Rehabilitation Fund Required Balance, or amounts in the Capital Expenditures Fund are in excess of the Capital Expenditures Fund Required Balance, as applicable, such excess amounts will be transferred into the Toll Revenue Fund. [INSERT DIAGRAM OF THE FLOW OF FUNDS] Project Fund. The following separate Accounts are established and created within the Project Fund: • Senior Lien Bonds Account • Permitted Second Lien Obligations Account • Subordinate Obligations Account • Sales Tax Revenue Bonds Account • Commission Equity Account Prior to the Substantial Completion Date, Project Costs shall be paid from the Project Fund and its Accounts, including the Senior Lien Bonds Account, the Permitted Second Lien Obligations Account, the Subordinate Obligations Account, the Sales Tax Revenue Bonds Account and the Commission Equity Account, as described below. Senior Lien Bonds Account. The net proceeds of each Series of the Senior Lien Bonds shall be deposited into the applicable sub-account of the Senior Lien Bonds Account as provided by the applicable Supplemental Indenture. The Senior Lien Bonds Account and all sub-accounts therein shall be maintained in order to account for the receipt and disbursement of proceeds (and all earnings thereon) of the Senior Lien Bonds, including but not limited to, the payment of, or reimbursement for a prior payment of, Costs of Issuance of Senior Lien Bonds and Project Costs incurred prior to the Substantial Completion Date, as permitted by the Code and in compliance with the Tax Certificate. Funds therein shall be disbursed [pursuant to a Funds Transfer Certificate] in accordance with the provisions of the Indenture. Permitted Second Lien Obligations Account. The proceeds of any Permitted Second Lien Obligations will be deposited by the Trustee into the Permitted Second Lien Obligations Account and will be used to pay Project Costs in accordance with the provisions of the applicable Permitted Second Lien Obligations. Subordinate Obligations Account. The net proceeds of each draw under the TIFJA Loan shall be deposited on the respective funding date of such draw in the Subordinate Obligations Account in accordance with, and used for the purposes set forth in, the TlFIA Loan Agreement. Notwithstanding anything to the contrary set forth in the Indenture, the lien on the Subordinate Obligations Account (and 57023390.6 15 63
all earnings thereon) shall apply only to the TIFIA Loan Agreement and the related interest of the TIFIA Lender with respect to amounts on deposit in such Account from time to time, and such amounts shall be solely for the benefit of the TIFIA Lender until such funds have been disbursed in accordance with the Indenture. Sales Tax Revenue Bonds Account. The proceeds of the 2013 Sales Tax Revenue Bonds will be transferred to the Trustee and deposited by the Trustee into the Sales Tax Revenue Bonds Account and will be used to pay Sales Tax Eligible Project Costs in accordance with the provisions of the Indenture and of the Sales Tax Revenue Bond Indenture. The Commission shall comply with the applicable provisions of the Indenture, including the delivery of a Funds Transfer Certificate (to the extent required by the Indenture), and with the applicable provisions of the Sales Tax Revenue Bond Indenture in requesting a disbursement of funds from time to time from the Sales Tax Revenue Bonds Account. Commission Equity Account. Equity contributions provided by the Commission from time to time will be deposited by the Trustee into the Commission Equity Account and will be used to pay Sales Tax Eligible Project Costs. The Commission shall comply with the applicable provisions of the Indenture, including the delivery of a Funds Transfer Certificate (to the extent required by the Indenture) in requesting a disbursement of funds from time to time from the Commission Equity Account. Except as otherwise required by any applicable Law, to the extent that on the date of final completion of the construction of the Project, as evidenced by the delivery to the Trustee of a Certificate of the Commission, there shall be any funds remaining on deposit in the Project Fund (or any Account thereof), such funds will be deposited into the Toll Revenue Fund. Operation ami Maintenance Fund. Upon receipt of amounts transferred to the Operation and Maintenance Fund under the Indenture, the Commission shall thereafter apply the funds in the Operation and Maintenance Fund for the payment of Operation and Maintenance Expenses in accordance with the terms of the Indenture. Capital Expenditures Fund. The Trustee shall cause amounts in the Toll Revenue Fund, to the extent available, to be deposited into the Capital Expenditures Fund from time to time as shall be necessary to build and thereafter maintain the Capital Expenditures Fund Required Balance. On each date on which Capital Expenditures Fund Permitted Expenditures are due and payable or reasonably expected to become due and payable, monies on deposit in the Capital Expenditures Fund shall be applied by the Trustee pursuant to a Written Request of the Commission to pay such Capital Expenditures Fund Permitted Expenditures. Senior Lien Bond Reserve Fund. On the date of issuance of any Series of Senior Lien Bonds or Parity Obligations that has a Senior Lien Bond Reserve Requirement, the Senior Lien Bond Reserve Requirement for those Senior Lien Bonds or Parity Obligations shall be deposited in the Senior Lien Bond Reserve Fund in an Account solely for the benefit of those Senior Lien Bonds or Parity Obligations. Alternatively, the Supplemental Indenture for any Series of Senior Lien Bonds may establish a pooled Senior Lien Bond Reserve Requirement for that Series of Senior Lien Bonds or Parity Obligations and any one or more subsequently issued Series of Senior Lien Bonds or Parity Obligations with the same pooled Senior Lien Bond Reserve Requirement, in which case the Senior Lien Bond Reserve Requirement for the initial such Series of Senior Lien Bonds or Parity Obligations shall be deposited in the Senior Lien Bond Reserve Fund in an Account solely for the benefit of those Senior Lien Bonds or Parity Obligations and any additional Senior Lien Bonds or Parity Obligations with the same pooled Senior Lien Bond Reserve Requirement, and on the date of issuance of any such additional Senior Lien Bonds or Parity Obligations, there shall be deposited in the Account the amount necessary to increase the 57023390.6 16 64
balance in the Account to an amount equal to the Senior Lien Bond Reserve Requirement for all Senior Lien Bonds or Parity Obligations secured by that Account. Monies on deposit in each Account within the Senior Lien Bond Reserve Fund shall be applied by the Trustee as follows: ( 1) If on any interest payment date for Senior Lien Bonds or Parity Obligations secured by an Account within the Senior Lien Bond Reserve Fund, principal payment date for such Senior Lien Bonds or Parity Obligations or redemption date on which such Senior Lien Bonds or Parity Obligations are subject to mandatory sinking fund redemption, the amount on deposit in any applicable Account of the Senior Lien Bond Fund, determined after taking into account all amounts transferred to such Account of the Senior Lien Bond Fund in accordance with this Indenture on or prior to such date, is not sufficient to pay interest and/or principal and/or the redemption price (excluding any redemption premium) due on such Senior Lien Bonds or Parity Obligations, then moneys shall be transferred to the Senior Lien Bond Interest Payment Account and/or the Senior Lien Bond Principal Payment Account, as applicable, from the applicable Account of the Senior Lien Bond Reserve Fund which, together with moneys then on deposit in the applicable Account of the Senior Lien Bond Fund, will be sufficient to pay interest and/or principal and/or the redemption price (excluding any redemption premium) due on such Senior Lien Bonds or Parity Obligations on such date. Moneys shall be transferred first to the Senior Lien Bond Interest Payment Account until such Account, together with any available funds then on deposit in the Senior Lien Bond Interest Payment Account of the Senior Lien Bond Fund, is sufficiently funded with respect to such Senior Lien Bonds or Parity Obligations and thereafter, to the Senior Lien Bond Principal Payment Account until such Account, together with any available funds then on deposit in the Senior Lien Bond Principal Payment Account of the Senior Lien Bond Fund, is sufficiently funded with respect to such Senior Lien Bonds or Parity Obligations. (2) At maturity of the Senior Lien Bonds or Parity Obligations upon earlier redemption of all or any portion of the Outstanding Senior Lien Bonds or Parity Obligations secured by funds on deposit in an Account of the Senior Lien Bond Fund, the Commission may direct the Trustee to transfer such funds on deposit in such Account of the Senior Lien Bond Reserve Fund to the Senior Lien Bond Principal Payment Account of the Senior Lien Bond Fund to be applied to the final payment of principal of all or a portion of the Senior Lien Bonds or Parity Obligations secured by such funds or to an escrow account established for defeasance of such Senior Lien Bonds or Parity Obligations pursuant to the Indenture, provided that, if less than all of the Senior Lien Bonds or Parity Obligations mature or are redeemed, the amount on deposit in such Account of the Senior Lien Bond Reserve Fund following such transfer shall not be less than the Senior Lien Bond Reserve Requirement applicable to the applicable Senior Lien Bonds or Parity Obligations to remain Outstanding following such maturity or redemption of Senior Lien Bonds or Parity Obligations. (3) Except as provided in paragraph (2) above, any amounts on deposit in an Account of the Senior Lien Bond Reserve Fund in excess of the applicable Senior Lien Bond Reserve Requirement shall be applied in accordance with the Indenture. The Reserve Requirement for any Series of Senior Lien Bonds or Parity Obligations may be permitted or required by the Supplemental Indenture establishing the Reserve Requirement to be funded in whole or in part with a Reserve Facility. The terms and conditions for any Reserve Facility shall be set forth in the Reserve Facility or the Supplemental Indenture establishing the Reserve Requirement to be met in whole or in part by the Reserve Facility, provided that those terms and conditions shall conform to 57023390.6 17 65
and be consistent with the provisions set forth in the Indenture. The Trustee shall withdraw cash (and liquidate investments to produce cash) and draw on Reserve Facilities in any Account in the Senior Lien Bond Reserve Fund to fund payments of principal of and interest on Senior Lien Bonds or Parity Obligations supported by such Account in the Senior Lien Bond Reserve Fund in the manner and in the order specified in the applicable Supplemental Indenture or Supplemental Indentures. The Indenture shall not be discharged until all Reserve Facility Costs owing to a Reserve Facility Provider shall have been paid in full. Subordinate Obligations Reserve Fund. If, on any. Monthly Payment Date immediately preceding a date when debt service on Subordinate Obligations (including, in the case of a TIFIA Loan, only TIFIA Mandatory Debt Service) shall be due and payable, the amounts available in the Subordinate Obligations Payment Fund for the payment of such debt service, after taking into account any transfers made into such Fund in accordance with clause Ninth of the clauses describing the Indenture flow of funds on such Monthly Payment Date, are not sufficient to pay such debt service payable on such payment date, then moneys shall be transferred to the Subordinate Obligations Payment Fund from the Subordinate Obligations Reserve Fund to pay such insufficient amounts. The lien on the Subordinate Obligations Reserve Fund (and all earnings thereon) shall secure the payment only of the Subordinate Obligations and the related interest of the registered Owner of such Subordinate Obligations with respect to amounts on deposit in such Fund from time to time, and such amounts shall be solely for the benefit of such holder of Subordinate Obligations until such funds have been disbursed in accordance with the Indenture. If necessary, the Commission shall instruct the Trustee to create Accounts within the Subordinate Obligations Reserve Fund to facilitate compliance with the provisions of this paragraph and the applicable provisions of any Supplemental Indenture. On the date that the Subordinate Obligations are paid in full, the amounts remaining on deposit in the Subordinate Obligations Reserve Fund on such date will be transferred to the Surplus Fund. Repair and Rehabilitation Fund. The Trustee shall, in accordance with the Indenture, cause amounts in the Toll Revenue Fund, to the extent available, to be deposited into the Repair and Rehabilitation Fund from time to time [in accordance with a schedule with budgeted variance][NTD: Nossman to provide specific language]. On any date on which Repair and Rehabilitation Fund Permitted Expenditures are due and payable or reasonably expected to become due and payable, monies on deposit in the Repair and Rehabilitation Fund shall be applied by the Trustee pursuant to a Written Request of Commission to pay such Repair and Rehabilitation Fund Permitted Expenditures. Residual Fund; Surplus Fund. On June I [and December I] each year, after the payment of all amounts due on the Commission's Obligations on such date, the amounts remaining on deposit in the Residual Fund shall be transferred on each such date as follows: (I) while Subordinate Obligations in the form of or securing payment of a TIFIA Loan remain Outstanding: (A) one-half to the Subordinate Obligations Prepayment Account, and (B) one-half to the Surplus Fund; or (2) if no Subordinate Obligations in the form of or securing payment of a TIFIA Loan remain Outstanding, to the Surplus Fund. Funds on deposit in the Surplus Fund and funds credited to such Fund will not be subject to the lien and pledge of the Indenture, and the Commission will have the exclusive right to withdraw or otherwise dispose of or transfer funds on deposit in the Surplus Fund to any account (or to such Person) as directed by the Commission in writing in its sole discretion on any Monthly Funding Date; provided that no Event of Default has occurred and is continuing hereunder and that there is no shortfall in funding 57023390.6 18 66
the amounts required by clauses First through Fourteenth of the flow of funds on such Monthly Funding Date. Insufficient Funds. Notwithstanding any other provision to the contrary in the Indenture or in any Financing Document, should the amount on deposit in any of the Funds or Accounts listed in the First through Thirteenth clauses in the Indenture flow of funds be insufficient to pay when due obligations payable from such Fund or Account pursuant to the terms of the Indenture, the Trustee shall transfer to such Fund or Account moneys held in other Funds and Accounts listed in the First through Fourteenth clauses in the Indenture flow of funds; provided that: (i) such transfers will be made from Funds and Accounts in inverse order of the deposits, (ii) no such transfers will be made from a Fund or Account earlier in the order of deposits to a Fund or Account later in such order of deposits; and (iii) no such transfers shall be made from the Rebate Fund, the Senior Lien Bond Reserve Fund, the Subordinate Obligations Reserve Fund, or the Permitted Second Lien Obligations Reserve Fund (unless the funds on deposit therein are in excess of the applicable reserve requirement, in which case an amount equal to such excess funds on deposit shall be transferred from such Fund), or any Redemption Fund or other Fund or Account not referenced in the deposits set forth in the Indenture flow of funds. Amounts in the Senior Lien Bond Reserve Fund shall only be used to make payments on the Senior Lien Bonds, and are not available for other purposes. Amounts in the Permitted Second Lien Obligations Reserve Fund shall only be used to make payments on the applicable Permitted Second Lien Obligations, and are not available for other purposes. Amounts in the Subordinate Obligations Reserve Fund shall only be used to make payments on the applicable Subordinate Obligations, and are not available for other purposes 2013 Bonds Reserve Account On the date of delivery of the Series 2013 Bonds, proceeds of the Series 2013 Bonds in the amount of$ , representing the initial 2013 Bonds Reserve Requirement, will be deposited in the 2013 Bonds Reserve Account within the Senior Lien Bond Reserve Fund, and shall be applied pursuant to the Indenture to make up any shortfall in the payment of interest and/or principal and/or redemption price (excluding any redemption premium) due on the Series 2013 Bonds. "2013 Bonds Reserve Requirement" means, as of any particular date of calculation, with respect to the Series 2013 Bonds, an amount equal to the least of (i) Maximum Annual Debt Service on the Series 2013 Bonds, (ii) one hundred twenty-five percent (125%) of average annual Debt Service on the Series 2013 Bonds, or (iii) ten percent ( 1 0%) of the original principal amount of the Series 2013 Bonds. Rate Covenant and Annual Budget The Commission covenants that it shall at all times, beginning in the second Fiscal Year following the Substantial Completion Date, establish, levy, maintain and collect tolls in connection with the Toll Road and establish such charges for use of the property constituting part of the Toll Road, including, without limitation and as permitted by law, leasehold payments, concession payments, rents and other charges, as shall be sufficient, collectively, to produce Net Revenue in each Fiscal Year, in an amount at least equal to the greater of (I), (2), or (3) below: (I) one hundred __ percent (I_%) of the Annual Debt Service in such Fiscal Year on all Outstanding Senior Lien Bonds and Parity Obligations; or (2) one hundred __ percent (1_%) of the Annual Debt Service in such Fiscal Year on all Outstanding Senior Lien Bonds and Parity Obligations, Permitted Second Lien Obligations and Subordinate Obligations; or 57023390.6 19 67
(3) one hundred percent (I 00%) of the Annual Debt Service in such Fiscal Year on all Outstanding Obligations, plus the amounts required to be deposited into the Senior Lien Bond Reserve Fund, the Permitted Second Lien Obligations Reserve Fund, the Subordinate Obligations Reserve Fund and the Repair and Rehabilitation Fund and any other Fund established by a Supplemental Indenture to be funded by Revenue. In making the calculations in (I), (2), and (3) above, the Commission may take into consideration as a credit against Annual Debt Service any amounts received, or reasonably expected to be received, in the Fiscal Year from or as a result of any additional security granted or pledged to the Bondholders by the Commission with respect to the Obligations; provided, that if the pledge is not for the benefit of all Obligations, the amounts expected to be received may only be taken into account when making the calculation for the affected Obligations. Beginning in the second Fiscal Year following the commencement of toll collections by the Commission for use of the Toll Road pursuant to the Cooperative Agreement, the Commission covenants: (i) to compute projected Net Revenue for each Fiscal Year and the projected ratios described in (1), (2) and (3) above (the "Coverage Ratios") within ten Business Days after the beginning of that Fiscal Year (such date of computation being hereinafter referred to as a "Coverage Calculation Date"); (ii) to furnish promptly to the Trustee a Certificate of the Commission setting forth the results of such computations; and (iii) if any Coverage Ratio is less than the applicable rate requirement, to take such action as promptly as practicable after the Coverage Calculation Date (including, without limitation, increasing Toll Revenues through toll increases) as the Commission projects is necessary to cause the projected Coverage Ratios for that Fiscal Year to equal or exceed the rate requirement. Within 60 days after the end of each Fiscal Year (beginning with the second Fiscal Year following the commencement of toll collections by the Commission for use of the Toll Road pursuant to the Cooperative Agreement), the Commission will tile with the Trustee a report setting fm1h the Net Revenue for such Fiscal Year. The failure of toll rates to yield an amount sufficient to achieve the Coverage Ratio shall not be deemed to constitute an Event of Default so long as the Commission complies with the requirements set forth below. If any such report indicates that the Net Revenue for such Fiscal Year were Jess than the amount required, then as soon as practicable after delivering such report to the Trustee, the Commission shall employ a Traffic Consultant to review and analyze the operations of the Toll Road and to submit to the Board, as soon as practicable (but not later than such date as will enable the Board to act upon it within 180 days after the end of the Fiscal Year in question), a written report which shall include the actions that the Traffic Consultant recommends should be taken by the Commission with respect to (i) revising the toll rates, (ii) altering its methods of operation, or (iii) taking other action projected to produce the amount so required in the following twelve month period (or, if Jess, the maximum amount deemed feasible by the Traffic Consultant and that the Traffic Consultant estimates will not adversely affect the amount of Net Revenue). Promptly upon its receipt of such written report (and, in any case, within 180 days after the end of the Fiscal Year in question), after giving due consideration thereto, the Commission will revise the toll rates, as permitted by law, alter its methods of operation, or take such other action as it deems appropriate. Such revisions, alterations, or actions need not comply with the recommendations of the Traffic Consultant so long as Net Revenue projected by the Traffic Consultant to be produced by the revisions, alterations or actions then taken by the Commission are at least equal to the amount required under the Indenture. The Commission further covenants that such toll rates for traffic using the Toll Road will be established and maintained in a reasonable way to cover all traffic (other than vehicles used for maintaining the Toll Road; police, tire, and other public emergency vehicles; buses owned and operated by any public agency; vehicles with multiple passengers or which allow for a limited number of passengers, including motorcycles, according to policies determined by the State or the Commission; 57023390.6 20 68
electric, hybrid-electric and other vehicles that meet emission-reduction policies determined by the State of the Commission; vehicles which are otherwise exempt from payment of tolls under State or federal law; and any vehicles during a public emergency declared by the Commission) consistent with the requirements hereof, but with such classifications as the Commission may deem appropriate. Notwithstanding any prOVISIOn to the contrary, nothing in the Indenture shall be deemed to require the Commission to collect tolls and other fees with respect to which the Commission has determined, based upon a report from a Traffic Consultant, that the costs of collection would exceed the amount of tolls and other fees expected to be collected; and provided further that nothing contained in the Indenture shall prevent the Commission from temporarily reducing or eliminating tolls and other fees in connection with programs which it intends to use to increase Net Revenue. See "APPENDIX D -SUMMARY OF CERTAIN PROVISIONS OF THE TIFIA LOAN AGREEMENT" for a summary of rate covenants under the TIFIA Loan Agreement. Additional Senior Lien Bonds and Parity Obligations Subsequent to the issuance of the Series 2013 Bonds, additional Senior Lien Bonds or Parity Obligations may be issued if the requirements described in clauses (a), (b) or (c) below are met. (a) the Senior Lien Bonds or Parity Obligations are issued for purposes of refunding Outstanding Senior Lien Bonds or Parity Obligations by providing funds for the payment of any or all of the following: (I) The Bond Obligation, redemption or purchase price (including premium, if any) of the Outstanding Senior Lien Bonds or Parity Obligations to be refunded; (2) All expenses incident to the calling, retiring or paying of such Outstanding Bonds or Parity Obligations, the Costs of Issuance of such refunding Bonds or Parity Obligations, and any termination payments or other payments to the holders of obligations of the Commission entered into pursuant to California Government Code Section 5922 (or any similar statute) related to such Outstanding Bonds or Parity Obligations; (3) Interest on all Outstanding Bonds or Parity Obligations to be refunded to the date such Bonds or Parity Obligations will be called for redemption or paid at maturity; and (4) Interest on the refunding Senior Lien Bonds or Parity Obligations from the date thereof to the date of payment or redemption of the Senior Lien Bonds or Parity Obligations or to be refunded; provided that the Commission delivers a Certificate of the Commission to the effect that the Commission projects that the Average Annual Debt Service on all Outstanding Bonds and Parity Obligations, Permitted Second Lien Obligations and TlFIA Mandatory Debt Service after the issuance of the proposed additional Bonds or Parity Obligations will be less than the Average Annual Debt Service on all Outstanding Bonds and Parity Obligations, Permitted Second Lien Obligations and TIFJA Mandatory Debt Service prior to the issuance of such proposed Bonds or Parity Obligations; and provided further, that, if the maturity date of such additional Bonds or Parity Obligations to be issued extends to a date later than the final maturity date of the Obligations being refunded, then Net Revenue in each Fiscal Year from and after the final maturity date of such refunded Obligations is projected to be not less one hundred thirty percent (130%) of the Annual Debt Service payable in each such Fiscal Year with respect to all 57023390.6 21 69
Outstanding Bonds and Parity Obligations, Permitted Second Lien Obligations and TIFIA Mandatory Debt Service, including the proposed additional Bonds or Parity Obligations; (b) the Commission delivers a report of the Traffic Consultant to the effect that, as of the date of issuance of the additional Senior Lien Bonds or Parity Obligations, either: (I) Net Revenue during the preceding Calculation Period ending not more than ninety (90) days prior to the date of delivery of the proposed additional Senior Lien Bonds or Parity Obligations, was sufficient to satisfY the Toll Road rate covenant of the Indenture (which report may assume that a revision of the tolls that was approved and implemented by the Commission subsequent to the beginning of such Calculation Period had been in effect for the entire Calculation Period), or (2) projected Net Revenue for each Fiscal Year over the term of the proposed additional Bond or Parity Obligations is expected be sufficient to satisfy the Toll Road rate covenant of the Indenture in each Fiscal Year. In calculating projected Net Revenue, the Commission shall take into account amounts projected to be received from any adopted toll increase or increases and any additional toll lanes and facilities to be designated as included within the definition of Toll Road; and, while the Commission has outstanding Subordinate Obligations in the form of or securing payment of a TIFIA Loan held by the TIFIA Lender, the Commission has received the written consent of the TIFIA Lender to such issuance; or (c) the Senior Lien Bonds or Parity Obligations constitute Completion Obligations; provided, however, that prior to the incurrence of such Completion Obligations, the Commission shall furnish to the Trustee: (i) a certificate of a licensed architect or engineer estimating the costs of completing the facilities for which such Completion Obligations are to be incurred, (ii) a Certificate of the Commission certifYing that the amount of such Completion Obligations to be incurred will be sufficient, together with other funds, if applicable, to complete construction of the facilities as estimated by the architect or engineer in respect of which such Completion Obligation is to be incurred and pay capitalized interest, if any, on Commission Obligations Outstanding during the completion period, and (iii) evidence that such Senior Lien Bonds and Parity Obligations will be rated at an investment grade rating by such credit rating agency. See "APPENDIX E -SUMMARY OF CERTAIN PROVISIONS OF THE TIFIA LOAN AGREEMENT" for a summary of additional conditions to or restrictions on the Commission's ability to issue additional Senior Lien Bonds or Parity Obligations. Subordinated Obligations; TIFIA Loan Except to the extent restricted by a Supplemental Indenture, the Commission may issue or incur Pennitted Second Lien Obligations and other subordinate obligations, such as the TIFIA Loan, payable out of the Trust Estate on a basis junior and subordinate to the payment of the principal, interest and reserve fund requirements for the Senior Lien Bonds and any Parity Obligations. The T/FIA Loan Agreement contains provisions providing for a lien on the Trust Estate on a parity with the Senior Lien Bonds and Parity Obligations in the event of Bankruptcy Related Event, as defined in the Indenture. 57023390.6 22 70
RIVERSIDE COUNTY TRANSPORTATION COMMISSION General The Commission was established in 1977 to oversee the funding and coordination of all public transportation services within the County. The Commission serves as the tax authority and implementation agency for the voter-approved Measure A Transportation Improvement Program, which imposes a half-cent sales tax to fund transpm1ation improvements. In addition to the Commission's Measure A responsibilities, the Commission has also been designated as the congestion management agency (the "CMA") for the County. As the CMA, the Commission has developed a congestion management program that more effectively utilizes transportation funds by linking land use, transportation and air quality efforts. The Commission serves as the service authority for freeway emergencies and operates the freeway service patrol (the "FSP") for the County. The results of these programs-597 call boxes along the County roadways and 21 FSP tow trucks providing assistance to more than 43, I 00 motorists annually -are among the most visible of the Commission's programs. In 1998, the State Legislature gave new authority to the Commission by changing the way funding is distributed from the State Transportation improvement Program, which is funded through state and federal gas taxes. In simple terms, counties no longer apply to the State for funding their most urgent transportation needs. Instead, State transportation dollars are given directly as an entitlement, leaving the decision making about transportation spending up to the designated county transportation commission like the Commission. While this gives the Commission greater control over how transportation dollars are spent, it also requires a much higher level of local communication and participation to determine how these dollars are spent throughout a county with so many transportation needs. The Commission has the responsibility to program funds received under the California Transportation Development Act, a statewide source of funding for transit purposes, primarily to the County's major public transit providers, although the Commission has no responsibility to provide transit services. 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 30. The Board expanded in 2008, 2010 and 2011 with the addition of four members in total representing newly incorporated cities. The current Board now has 34 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 "Plan") and Retail Transaction and Use Tax Ordinance which expressed the following concerns in its preamble: "The transportation system in Riverside County is rapidly deteriorating and our population and economy are growing rapidly. Maintenance and repairs of existing roadways and improvements to relieve congestion cannot be accomplished with available funds. Without additional funds, the system will bog down and pavement will crumble into permanent disrepair .... Local governments must either generate revenues to expand our system and maintain our investments or watch the system collapse and endanger the health, welfare and safety of all Riverside County residents." 57023390.6 23 71
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 ofthe Transportation Improvement Program. To address the concerns as expressed in the preamble, and to accomplish its goals and policies, the ordinance provided that sales tax revenues be distributed to the specific geographic areas of Riverside County (i.e., Western County, Coachella Valley, and Palo Verde Valley) based on their proportionate share of revenues generated in the County, and that funds be allocated for highway and regional arterial projects, local streets and roads, transit and commuter rail, new corridors and economic development. In the Western County, $370 million is to be used for new corridor projects, $1.020 billion for highway projects, $300 million for regional arterial projects, $390 million for public transit, $970 million for local street and road improvements, $270 million for bond financing costs, and the remaining $40 million for economic development projects. In the Coachella Valley, 50 percent is to be earmarked for its highway and regional arterial system, 35 percent for local streets and roads, and the remaining fifteen percent for transit. All Palo Verde Valley funds are designated for the maintenance of local streets and roads. Commissioners Section 130053 of the California Public Utilities Code specifies that the Commission consists of five members of the County Board of Supervisors, one member from each incorporated city in County (each of whom must be a mayor or member of the City Council) and one non-voting member appointed by the governor of the State of California. The role of the Commission is to act as the policy-making board for Riverside County transportation activities. Executive Staff The Commission's key staff members, the position held by each and a brief statement of the background of each staff member are set forth below. Anne Mayer, Executive Director. Anne Mayer was appointed in October 2007 as the Chief Executive Officer of the Commission. She is responsible for overall management of the Commission including execution of operational policies and procedures and all personnel decisions. Ms. Mayer joined the Commission in May 2005 as Deputy Executive Director. Prior to joining the Commission, she was the District 8 Director for Cal trans. As District Director, she was responsible for management of the state highway system in San Bernardino and Riverside counties. With over 25 years of experience in the public works field, Ms. Mayer was with Caltrans for 14 of those years. Ms. Mayer holds a civil engineering degree from Michigan State University. John Standiford, Deputy Executive Director. In January 2008, John Standiford was appointed as Deputy Executive Director for the Commission. He joined the Commission in 1999 and was the Public Affairs Director prior to his current appointment. Mr. Standiford also served as the Manager of Government and Media Relations for the Orange County Transportation Authority, where he worked for more than seven years. Earlier in his career, Mr. Standiford worked for three state legislators from the 57023390.6 24 72
Los Angeles area. He received his bachelor and master's 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. Michael Blomquist, Toll Program Director. Michael Blomquist has served as the Toll Program Director since 2008 after joining the Commission in 2007. · He is responsible for managing the toll program which includes the planning, design, construction, and operation of the Commission's two tolled express lane facilities. He previously worked in the consulting engineering arena in various project and program management roles on large design-build freeway projects in California, Oregon, and Utah. He has 22 years of experience in transportation infrastructure and is a professional engineer in the State of California. He holds a bachelors of science degree in civil engineering from the California Polytechnic State University at San Luis Obispo and a masters degree in business from the California State University at Fullerton. THE RIVERSIDE SR-91 CORRIDOR IMPROVEMENT PROJECT State Route 91 ("SR-91") is an east-west limited access highway running from the I-405 in Los Angeles at its western end to the interchange of I-215 and SR-60 in Riverside County on its eastern end. The existing SR-91 cross section typically consists of four general purpose ("GP") lanes, varying in width from 11 feet to 12 feet, as well as auxiliary lanes in each direction. In Orange County, two tolled express lanes ("OCTA SR-9 1 Express Lanes") are operated in each direction by the Orange County Transportation Authority ("OCTA"). The OCTA SR-91 Express Lanes are in the median area, beginning west of the SR-91 /SR-55 interchange and terminating near the Riverside/Orange county line. These express lanes transition into one high occupancy vehicle ("HOV'') Jane in each direction in Riverside County. Two major freeway facilities intersect the Project, including 1-15 and SR-71. The Project will extend the OCTA SR-91 Express Lanes from the Orange County/Riverside County Line approximately eight (8) miles to the 1-15/SR-91 Interchange in Riverside, California by constructing one general purpose lane in each direction from SR-91 /SR-71 interchange to 1-15, and converting the existing HOY into a tolled express lane providing two tolled express lanes and five (5) general purpose Janes in each direction. The Project also includes a two (2) lane direct tolled connector approximately 2.8 miles in distance providing SR-91 tolled express lanes access/egress with I-15 South. This direct tolled connector comme?1ces near Grand Avenue on SR-91, and ends on 1-15 South near Ontario Avenue in the City of Corona. All of the Commission sponsored tolled express lanes are referred to herein as the "RCTC SR-91 Express Lanes." Other Project improvements include reconstruction with geometric improvements of five local interchanges, addition of auxiliary Janes and other operational improvements, installation of an electronic toll collection ("ETC') system, construction of new and widened bridges, retaining walls, sound walls and aesthetics improvements, and the addition of a collector-distributor system with braided ramps in the vicinity ofthe SR-91/1-15 interchange. 57023390.6 25 73
The OCTA SR-91 Express Lanes, operated by the OCTA, feature fully automated tolling, including the first application of managed lane variable pricing in the United States. The variable pricing approach adjusts toll rates based on the number of vehicles on the road to maintain "free flow" conditions and maximize throughput. Using the OCTA SR-91 91 Express Lanes as extended by the Project, commuters are expected to save 30 minutes on average on the eight-mile segment of SR-91 in Riverside County. CONSTRUCTION OF THE PROJECT Components of the Project The Project has been divided into two major phases for delivery-Phase I (Project Development) and Phase II (Design-Build). The Project Development phase covers the activities prior to financial close and issuance of the full notice to proceed to the design-builder. These activities generally include performing preliminary engineering, conducting traffic and revenue studies, obtaining the required environmental approvals, beginning of early right-of-way ("ROW') acquisitions, negotiating various agency agreements for environmental, design, construction, and operations, negotiating utility relocation agreements, obtaining state and federal tolling authority, securing state design-build authority, developing and adopting a toll policy, development of the design-build procurement documents, selection of the design-build contractor, award of the contract and issuance of a limited notice to proceed, and securing of Project funding. The Design-Build phase includes the activities that begin with financial close and issuance of the full notice to proceed and conclude upon Project final acceptance. These activities generally include the completion of the ROW acquisitions, the design and construction of the Project, commencement of toll operations and revenue collection, and project closeout. Parsons Transportation Group, acting as the Commission's project and construction manager, has provided estimated costs for the Project derived from detailed design work and analysis of current costs for comparable components. The Federal Highway Administration and Caltrans conducted a Cost Estimate Review ("CER") that examined the projected Project costs and concluded that there was a 99.5% confidence level in the estimate under their established methodology. [DELETE SINCE WE WILL HAVE A FIRM CONTRACT? MIGHT BE RELEVANT TO GIVE SOME ASSURANCE THAT CONTRACT PRICE IS FEASABLE?] Construction Contract The Commission and Atkinson/Walsh, a Joint Venture (the "Design-Builder") have entered into that certain Design-Build Contract (the "DB Contract"), a lump sum design-build contract pursuant to which the Design-Builder has agreed to perform all work for which it is responsible to obtain completion ofthe Project by the deadlines specified in the DB Contract. The DB Contract incorporates the following terms and provisions: Scope. [DESCRJBE DESCRIPTION OF SCOPE OF WORK. ALSO INCLUDE DESCRIPTION OF JNTERF ACE BETWEEN DESIGN-BUILDER AND COFIROUTE] Contract Price. As full compensation for the work and all other obligations to be performed by the Design-Builder, the Commission will pay to the Design-Builder a lump sum "Contract Price" of $ . Payments are to be made on the basis of progress by the Design-Builder, subject to a cap on the aggregate amount of payments which may be made to the Design-Builder at any specified time. 57023390.6 26 74
Retainage. The Commission will withhold funds (the "Retainage") from each payment to be made to the Design-Builder until such time as substantial completion is achieved, and thereafter will cease withholding Retainage from future payments. The Retainage will be an amount equal to 5% of the payment amount, after subtracting any amounts owing for design services and construction management services. Completion Deadline. Authorization allowing Design-Builder to proceed with work under the DB Contract will be provided by the Commission's issuance of a notice to proceed. Notice to proceed will be issued in two phases. The first notice to proceed (NTPI) was issued following the execution of the DB Contract on May 8, 2013. Issuance ofNTP1 authorized the Design-Builder to begin the planning and designing related work. The second notice to proceed (NTP2) is required to be issued no earlier than 120 days after issuance ofNTPl. The issuance ofNTP2 authorizes the Design-Builder to perfonn all other work and activities for the Project. The Design-Builder is required to achieve substantial completion within I ,218 days after the effective date ofNTP2, which is expected to be issued no earlier than September 2013. If the issuance of NTP2 is delayed due to acts or omissions of the Design-Builder or any of its related entities, the Design-Builder is required to achieve substantial completion within 1,218 days after close of the financing for the Project (including the Series 2013 Bonds). The Design-Builder is required to achieve final completion within 120 days after substantial completion and achieve final acceptance within 120 days after final completion. Force Majeure Event. The Contract Price is subject to increase for additional costs, and the completion deadline is subject to extension, due to a "Force Majeure Event," [as defined in the DB Contract. Force Majeure Events include events that could not have been avoided by the exercise of caution, due diligence or reasonable efforts by the Design-Builder or its related entity and include events such as natural disasters, epidemics, civil unrest, war, major legislation or regulation inability to obtain required approvals.] [IN THE ALTERNATIVE, PROVIDE COMPLETE DEFINITION FROM DB CONTRACT?] Liquidated Damages. The Design-Builder will be liable for and pay the Commission liquidated damages with respect to any failure to achieve substantial completion, completion and final acceptance by the applicable deadlines, subject to any Force Majeure Event relief provided in the CB Contract. The amount of such liquidated damages are as follows: • $95,000 for each day after the substantial completion deadline through the date of substantial completion, not to exceed 365 days; • $8,000 for each day after the completion deadline through the date of completion, not to exceed 365 days; and • $5,000 for each day after the final acceptance deadline and through the final acceptance date, not to exceed 365 days. Any portion of liquidated damages that is deposited to the Project Fund or an Account therein and applied or reserved for payment of Project Costs relating to the Toll Road during a period of delayed completion are not included in Toll Revenues. Accordingly, such portion of liquidated damages would not be available to pay debt service on the Series 2013 Bonds. 57023390.6 27 75
Performance and Payment Bond. On or before the issuance by the Commission of the initial notice to proceed, the Design-Builder is required to deliver to the Commission a performance bond and a payment bond, each in the initial amount of $50 million. Upon the issuance of the final notice to proceed, the amount of each of the performance bond and the payment bond will increase to $250 million. [DESCRIBE REQUIREMENTS FOR DRAW AND POTENTIAL DEFENSES] See "RISK FACTORS -Construction Risks-Payment and Performance Bonds." Guarantees. Each of The Walsh Group, Ltd. and Clark Construction Group, LLC (each, a "DB Guarantor") has executed a guaranty (each, a "DB Guaranty") in favor of the Commission that guarantees on an unconditional basis the full and prompt payment and performance when due of all of the obligations of the Design-Builder arising out of, in connection with, under or related to the DB Contract (including, without limitation, the Design-Builder's obligation to make payment to the Commission for liquidated damages, stipulated damages, and indemnity). Under each DB Guaranty, the DB Guuarantor is entitled to the benefit of all defenses available to the Design-Builder under the DB Contract. Insurance. The Design-Builder is required to obtain and maintain a construction insurance program with project-specific limits for commercial general liability, pollution liability, professional liability, and builder's risk. All such policies are required to be procured from insurance companies with an A.M. Best and Company rating level of A-: Class VI or better, or as approved by the Commission and authorized or approved to do business in the State. Furthermore, the Design-Builder is required to obtain delay coverage for loss of revenue due to accidental physical damage to the Project. Valuation will be based on estimated toll revenues with a period of indemnity limited to a period of no less than one year. The minimum loss valuation is $95,000 per day on an agreed basis. See "RISK FACTORS-Construction Risks-Limited Insurance Coverage." Design-Builder [IN FORMA TJON REGARDING DESlGN-BUILDER TO COME] Right-of-Way Acquisition The Project will require the acquisition of 74.27 acres of right-of-way, consisting of 248 parcels at an estimated cost of $144,100,000. As of the date of this Official Statement, the Commission has acquired 44 parcels at a cost of $36,668,000. [UPDATE PRIOR TO PRINTING] To address the specific risks associated with right-of-way acquisition that could hinder the ability of the Commission to meet the Project-specific goals and objectives, the Commission has implemented the following: • Development of a Project-specific ROW acquisition management plan (RAMP); • Implementation of a parcel mitigation planning program to minimize parcel impacts and reduce damages; • Implementation of an advanced and early acquisition program; and • Greater involvement of public outreach personnel in the acquisition process. 28 5 7023390.6 7 6
In addition, the Commission has entered into cooperative agreements with each of City of Corona and the County of Riverside outlining the roles and responsibilities of the Commission and the City of Corona or the County of Riverside, as applicable, relative to ROW acquisition, among other things. To the extent necessary, the Commission will use its power of eminent domain to acquire the necessary parcels. [DESCRIBE PLAN OF DISPOSITION OF SURPLUS AND FUNDING OF TJFIA RESERVE, FROM WHERE ROW ACQUISITION COSTS WJLL BE FUNDED AND SOURCE OF ESTIMATE OF TOTAL ROW COSTS] Environmental Studies Construction of the Project requires a variety of federal and state environmental perm its and other approvals. While the Commission expects to obtain any such approvals and permits that have not yet been obtained, there can be no assurances that construction of the Project will not be delayed as a result of delays in obtaining perm its and approvals. The major environmental permits with respect to the construction of the Project have been obtained. Preliminary engineering and environmental studies were initiated on the Project in September 2007. The studies determined that a full Environmental Impact Statement ("EJS") and Environmental Impact Report ("EIR") were required. Those documents were prepared by Parsons Brinckerhoff ("PB"). Caltrans is the lead agency for the environmental process under National Environmental Policy Act ("NEPA") delegation. The draft EIS/EIR was circulated in June 2011, and the Commission submitted the final EJS/EIR to Caltrans in October 2011. The Project is included in the 20 I 2 Regional Transportation Plan (RTP) update that was adopted by the regional metropolitan planning organization, the Southern California Association of Governments ("SCAG"), on April 4, 2012. Completion of the environmental review through a Record of Decision ("ROD") occurred in November 2012. Project Costs and Cost Contingencies The following table provides the total costs of the Project including contingency funds: [INSERT TABLE SHOWING BREAK OUT OF THE CONSTRUCTION BUDGET] OPERATION AND MAINTENANCE OF THE PROJECT The Commission will use the services of the existing OCTA SR-91 Express Lanes operator, Cofiroute USA, LLC ("Cofiroute" or the "Toll Operator"), to serve as operator of the RCTC SR-91 Express Lanes. Cofiroute currently is responsible for managing the OCT A SR-9 I Express Lanes operation, which includes revenue collection, customer accounts, violation enforcement, violation processing, incident management and response, and first line maintenance of tolling and traffic equipment. Cofiroute will have the same responsibilities for the RCTC SR-91 Express Lanes. Cofiroute will provide its services pursuant to the SR-91 Express Lanes Operating Agreement, dated ____ , 2013 (the "ORCOA"), by and among the Commission, OCTA and Cofiroute. The ORCOA will result in a single operator providing all operation and [first level] maintenance services for a single SR-91 tolled express lane system in Orange and Riverside Counties with such services payable by each of OCT A and the Commission from the revenues generated by its respective segment. 57023390.6 29 77
The Commission is responsible for roadway maintenance of the RCTC SR-91 Express Lanes infrastructure (e.g. pavement, barriers, channelizers, sign structures, etc.) pursuant to terms of the Toll Facilities Agreement between the Commission and Caltrans. The Commission will contract with Caltrans to perform this maintenance. Caltrans is responsible for the operations and maintenance for all SR-91 roadway elements outside the RCTC SR-91 Express Lanes. Cofiroute will monitor the daily operations of the toll collection system, communications network, internet, phone system, and toll collection equipment to ensure that all system components are fully functional. Specific activities include: • Occupancy Determination • In-Lane Mobile Violation Enforcement • Incident Handing • Traffic Operations • Emergency Services Coordination Cofiroute will actively monitor the volume and traffic flow to ensure proper congestion management toll pricing and display. It will ensure that the toll rate, set quarterly, is an accurate reflection of actual conditions, and that the correct toll rate is posted on the changeable message signs. Cofiroute is also responsible for maintenance of all elements of the toll collection system. It will provide 24/7 coverage for all maintenance-related activities for the toll collection system, providing customer assistance as needed. This includes all hardware, equipment, software, and also firmware maintenance for the toll points, changeable message signs, cameras, communications network hardware, and connections from the network hub to the toll operator's central toll collection system. Cofiroute's back office responsibilities include toll collection system applications software, system servers, system administration, and related peripheral equipment. Pursuant to the OR CO A, approximately six months prior to operational date of the RCTC SR-91 Express Lanes, Cofiroute is required to deliver cash, one or more letters of credit, United States Teasury securities and/or any combination thereof in the combined face amount of $10 million ($5 million of such security to be provided to the Commission and $5 million of such security to be provided to OCTA), as security for the performance of Cofiroute's obligations under the ORCOA. [DESCRIBE EXPERIENCE OF COFJROUTE AND ADDITIONAL TERMS OF ORCOA] Electronic Tolling As with the current OCTA SR-91 Express Lanes, the RCTC SR-91 Express Lanes will include an all-electronic toll collection system that will not accept cash on the road. All users will be required to have an account with a tolling agency that will issue a California standard (Title 21-compliant) FasTrak transponder to the customer. FasTrak transponders are fully interoperable with all toll roads and express lands in California, which will allow these customers to begin using the RCTC SR-91 Express Lanes as soon as it opens with no further administrative action on their part. The RCTC SR-91 Express Lanes will allow toll-free or discounted access to carpool vehicles with three or more occupants, depending on the time of day, and tolled access by single-occupant vehicles and carpools with few than three occupants. The goal of the Project is to make the transition from using the OCT A SR-91 Express Lanes to using the RCTC SR-91 Express Lanes as seam less as possible. 57023390.6 30 78
Tolls will be collected along the route at specific points of entry and departure, termed toll portals, as is currently done on the existing OCTA SR-91 Express Lanes. At the toll portal, an overhead antenna reads the transponder ID, encrypting the number for security causing a charge to be levied to the customer's account for the toll amount. The toll portal is also the point at which cameras record images of the vehicle's license plate for violation enforcement purposes. Cofiroute will be responsible for the proper collection, counting, handling, storage, transferring to the Commission's and OCT A's armored car service, and verification of the disposition of all collected funds. This includes cash payments, payments by credit card, check, or other sources associated with both SR-91 Express Lanes accounts and collections from violations and/or fines. Cofiroute will ensure that all funds are properly handled and stored in a vault prior to transfer to the Commission and OCTA armored car service. Cofiroute willl prepare the daily deposits for armored pickup and shall ensure that all cash and check remittances are kept intact with the deposit slip. Daily deposit records for bank deposit shall be distinguished by: • Type (Cash/Credit Card/Check) • Location • Payment Type (Tolls, Violations, Fees, Deposits, etc.,) Funds shall be transferred by armored car service to the bank designated by the Commission and OCTA and deposited into the custodial account established by the Commission and OCTA. Controls should be established over all cash and checks received at all times. Toll Rates In June 2012, the Commission adopted an "enhanced" toll policy that is based on the OCTA policy, but allows for the increase of off-peak toll rates once certain volume thresholds are exceeded. The enhanced policy is similar to the OCTA policy as it ties toll increases to traffic volumes, though it allows greater toll flexibility during non-peak periods. See "APPENDIX B -RIVERSIDE COUNTY 91 EXPRESS LANES EXTENSION INVESTMENT GRADE STUDY." Toll Violations Enforcement According to California statutes, where video imaging or a photo is used for enforcement, the toll agency can pursue the vehicle's owner for collection of the toll plus administrative fees. Such enforcement measures are to be taken when a vehicle owner is not a registered program customer, has insufficient funds in his or her account, or his or her account has been closed. [DESCRJBE ENFORCEMENT PROCESS AND PARTIES INVOLVED] Cofiroute's back-office system has the is designed to generate warning letters and toll violation notices automatically or to take other actions, as determined by legislation and Commission and OCTA policies. Back-office violation processing functionality includes: • Manual review of the license plate data • Account verification • Retrieval of name and address 31 57023390.6 7 9
" N o t i c i n g " P a y m e n t s " C o l l e c t i o n s " C o u r t o r a d m i n i s t r a t i v e p r o c e s s i n g , a s a p p l i c a b l e I n d e p e n d e n t O p e r a t i o n a n d M a i n t e n a n c e S t u d y A t t h e C o m m i s s i o n ' s r e q u e s t , P a r s o n s T r a n s p o r t a t i o n G r o u p p r e p a r e d a R e p o r t o f t h e G e n e r a l E n g i n e e r i n g C o n s u l t a n t , a t t a c h e d h e r e t o a s A P P E N D I X C , t o p r o v i d e t h e C o m m i s s i o n w i t h a n i n d e p e n d e n t e n g i n e e r i n g o p i n i o n w i t h r e s p e c t t o t h e p r o b a b l e a n n u a l o p e r a t i n g , m a i n t e n a n c e a n d a d m i n i s t r a t i v e c o s t s o f t h e n e w S R - 9 1 T o l l e d E x p r e s s L a n e s . T h e C o m m i s s i o n h a s r e l i e d o n s u c h s t u d y i n p a r t i n p r o j e c t i n g O p e r a t i o n a n d M a i n t e n a n c e E x p e n s e s a s s e t f o r t h i n t h e t a b l e b e l o w e n t i t l e d " E s t i m a t e d C a s h F l o w a n d D e b t S e r v i c e C o v e r a g e T a b l e . " [ S U M M A R Y O F K E Y F I N D I N G S T O B E A D D E D ] P R O J E C T E D F L O W O F F U N D S T h e p r o j e c t e d f l o w o f f u n d s u n d e r t h e I n d e n t u r e i s s h o w n i n t h e t a b l e b e l o w . S e e " S O U R C E S O F P A Y M E N T A N D S E C U R I T Y F O R T H E S E R I E S 2 0 1 3 B O N D S - F u n d s a n d A c c o u n t s ; F l o w o f F u n d s . " A l s o s e e " R I S K F A C T O R S - G e n e r a l - F o r w a r d - L o o k i n g S t a t e m e n t s . " [ I N S E R T P R O J E C T E D A N N U A L F L O W O F F U N D S T A B L E ] T R A F F I C A N D R E V E N U E E S T I M A T E S S t a n t e c C o n s u l t i n g S e r v i c e s I n c . ( " S t a n t e c " ) , a s t r a f f i c c o n s u l t a n t f o r t h e P r o j e c t , h a s p r e p a r e d t h e " R i v e r s i d e C o u n t y 9 1 E x p r e s s L a n e s E x t e n s i o n I n v e s t m e n t G r a d e S t u d y " d a t e d M a y 9 , 2 0 1 2 , a s s u p p l e m e n t e d b y S t a n t e c ' s S u p p l e m e n t a l L e t t e r d a t e d M a y _ , 2 0 1 3 ( t h e " S t u d y " ) , w h i c h i s a t t a c h e d h e r e t o a s A P P E N D I X B . S t a n t e c i s o n e o f t h e t o p g l o b a l d e s i g n f i r m s a s r a n k e d b y t h e E n g i n e e r i n g N e w s R e c o r d , h a v i n g a p r o f e s s i o n a l s t a f f o f s o m e 1 2 , 0 0 0 e m p l o y e e s a n d 1 6 0 o f f i c e s t h r o u g h o u t N o r t h A m e r i c a a n d h a s b e e n s e r v i n g p u b l i c a n d p r i v a t e c l i e n t s s i n c e 1 9 5 4 . S t a n t e c h a s a g r o u p o f o v e r 1 0 0 t r a n s p o r t a t i o n p r o f e s s i o n a l s o f w h i c h m o r e t h a n 2 0 p r o f e s s i o n a l s a r e a c t i v e l y i n v o l v e d w i t h t o l l f a c i l i t y c l i e n t s . S t a n t e c ' s t o l l f a c i l i t y e x p e r i e n c e i s b o t h b r o a d a n d d i v e r s e , h a v i n g w o r k e d w i t h m o r e t h a n 1 0 0 c l i e n t s i n m o r e t h a n 2 0 s t a t e s a n d i n t e m a t i o n a l l y . S t a n t e c ' s i n v e s t m e n t g r a d e t r a f f i c a n d r e v e n u e r e p o r t s h a v e b e e n t h e b a s i s f o r t h e s a l e o f o v e r $ 3 1 b i l l i o n i n r e v e n u e b o n d s . T h e S t u d y i n c l u d e s d i s c u s s i o n s o f e x i s t i n g t r a v e l p a t t e r n s ; t h e s t u d y m e t h o d o l o g y , i n c l u d i n g t h e d e v e l o p m e n t , v a l i d a t i o n a n d a p p l i c a t i o n o f t h e t r a f f i c f o r e c a s t i n g m o d e l ; t h e s o c i o e c o n o m i c f o r e c a s t s ; a n d t h e h i g h w a y n e t w o r k s t h a t w e r e u s e d a s i n p u t t o t h e m o d e l . A l l o f t h i s i n f o r m a t i o n w a s u s e d a s t h e f o u n d a t i o n f o r t h e t r a f f i c a n d r e v e n u e f o r e c a s t s c o n t a i n e d i n t h e S t u d y . A s p a r t o f t h e s t u d y , t r a f f i c a n d r e v e n u e s t r e a m s w e r e e s t i m a t e d f o r t w o d i f f e r e n t t o l l i n g p o l i c i e s : ( 1 ) i m p l e m e n t i n g t h e e x i s t i n g O C T A t o l l p o l i c y a n d ( 2 ) i m p l e m e n t i n g a n " e n h a n c e d " t o l l p o l i c y t h a t i s 5 7 0 2 3 3 9 0 . 6 3 2 8 0
based on the OCT A policy, but allows for the increase of off-peak toll rates once certain volume thresholds are exceeded. The enhanced policy, which was adopted by the Commission in June 2012, is similar to the OCTA policy as it ties toll increases to traffic volumes, though it allows greater toll flexibility during non-peak periods. In addition, a sensitivity analysis was performed for a "revenue maximization" toll policy. Using the data and methodologies outlined throughout the Study, 50-year traffic and revenue streams were estimated for both the OCT A and enhanced toll policies. [DELETE?] PLAN OF FINANCE The total cost ofthe Project is estimated at $[1.35] billion. The Project will be financed with (i) the Commission's direct contribution of Measure A Sales Tax Revenues in the approximate amount of $ annually for a period of [three] years and State Transportation Improvement Program funds of the Commission in the approximate amount of$ , (ii) a portion of the proceeds of the Series 2013 Bonds, (iii) a portion of the proceeds of the Commission's Sales Tax Revenue Bonds (Limited Tax Bonds) 2013 Series A (the "201 3 Sales Tax Revenue Bonds"), and (iv) pro.ceeds of the TlFlA Loan, all as more fully described below. The closing with respect to the Series 2013 Bonds, the 2013 Sales Tax Revenue Bonds and the TlFIA Loan are contingent on the successful concurrent closing with respect to all of them on the date of delivery of the Series 2013 Bonds. Information regarding the historical receipts of Measure A Sales Tax Revenues can be found in the Commission's Preliminary Official Statement dated __ , 2013, relating to the 2013 Sales Tax Revenue Bonds, which is hereby incorporated into this Official Statement by specific reference. Estimated Sources and Uses of Bond Proceeds The proceeds from the sale of the Series 2013 Bonds are estimated to be applied as set forth in the following table: Sources of Funds: Principal Amount of Series 2013A Bonds Principal Amount of Series 2013 B Bonds Premium/Original Issue Discount on Series 20 13A Bonds Premium/Original Issue Discount on Series 2013B Bonds Total Sources of Funds Uses of Funds: Senior Lien Obligations Account of Project Fund 2013 Series A Capitalized Interest Account(') 20 13 Bonds Reserve Account 2013 Bonds Costs of Issuance Account(2l (including Total Uses of funds (I) Amount deposited is expected to be sufficient to pay interest on the Series 2013 Bonds through and including m Costs of Issuance include Underwriters' discount, fees and expenses of Bond Counsel, Disclosure Counsel and the Financial Advisor, initial fees and expenses of the Trustee, printing expenses, rating agency fees and other costs. 57023390.6 33 81
Project Sources and Uses of Funds [To be revised with tables describing sources and uses of funds during different phases: financial close, during construction period and operations after completion of construction.] The estimated sources and uses of funds for the Project are summarized in the following table, in nom ina I dollars (with all amounts in thousands). The proceeds of the Series 2013 Bonds will provide approximately [ 12.5]% of the total funding needed for the Project. (I) Riverside SR-91 Corridor Improvement Project Sources (Nominal -$000's) Toll Revenue Bonds $ TIFIA Loan 2013 Sales Tax Revenue Bonds RCTC Annual Contributions of Sales Tax RCTC Pre-Development Contribution(Jl Investment Earnings STJP Funds Total Sources $ Uses (Nominal-$000's) Construction Fund Deposit(2l $ Capitalized Interest Fund Toll Revenue Bonds Deposit Sales Tax Bonds Deposit Debt Service Reserve Fund (Toll Revenue Bonds) Total Pre-Development Costs(J) Total Uses $ 168,908 445,835 449,132 132,366 95,143 12,582 2,000 1,355,966 1,011,806 31,077 81,197 16,891 214,995 1,355,966 Consists of amounts previously spent by the Commission on the Project from [DESCRIBE FUNDING SOURCES.] (2) Includes costs of issuance. (3) Includes retirement of$ of outstanding commercial paper notes. Commission Funding 2013 Sales Tax Revenue Bonds. On April 10,2013, the Commission authorized the issuance of not to exceed $500,000,000 in principal amount of its Sales Tax Revenue Bonds (Limited Tax Bonds), 2013 Series A (the "2013 Sales Tax Revenue Bonds"). Proceeds of the 2013 Sales Tax Revenue Bonds in the approximate amount of$[ 449, 132,000] will be used to finance a portion of the costs of the Project. The 2013 Sales Tax Revenue Bonds are special obligations of the Commission payable from and secured solely by a pledge of certain revenues consisting primarily of receipts from the imposition in the County of a lf2-cent sales tax that became effective on July I, 2009, less certain administrative fees paid to the California State Board of Equalization. The 20 J 3 Sales Tax Revenue Bonds are not payable from or secured by any Revenue securing the Series 2013 Bonds. 57023390.6 34 82
Commission Equity Account. The Commission has covenanted in the Indenture to deposit the following amounts into the Commission Equity Account, or otherwise provide for the payment of Project Costs from sources other than the funds on deposit in the Senior Lien Bonds Account, the Pennitted Second Lien Obligations Account, the Subordinate Obligations Account and the Sales Tax Revenue Bonds Account, as follows: Fiscal Year (ending June 30) Contribution Amount $ Such deposits or expenditures are expected to be made by the Commission from Sales Tax Revenues or other revenues of the Commission avai !able for such purpose. TIFIA Loan TIFIA Loan and TIFIA Bond. Pursuant to the Transportation Infrastructure Finance and Innovation Act of 1998, codified as 23 United States Code, Section 181, et seq. ("TIFIA"), and the Second Supplemental Indenture, dated as of June 1, 2013 (the "Second Supplemental Indenture"), between the Commission and the Trustee, the Commission has entered into the TIFIA Loan Agreement (the "TJFIA Loan Agreement") with the United States Department of Transportation acting by and through the Federal Highway Administrator (the "TJFIA Lender"), pursuant to which the Commission will borrow up to $[451] million for the purpose of financing a portion of the costs of the Project. The TIFIA loan will be evidenced by a toll revenue bond of the Commission (the "TIFIA Bond"). Debt service on the TIFIA Bond is payable semiannually on each 1 and I, commencing 1, 20_. The final maturity date ofthe TIFIA Bond is 1, 20 __ See "ESTIMATED CASH FLOW AND DEBT SERVICE COVERAGE." TIFIA Loan Disbursement Conditions. Any disbursement by the TIFIA Lender of the TIFrA Loan to pay or reimburse the Commission for Eligible Project Costs incurred in connection with the Project, may be made no later than one year after the date on which the Project is open in its entirety to vehicular traffic (the "Substantial Completion Date"). The Commission must satisfY certain requirements and conditions to draw funds under the TIFIA Loan Agreement. Specifically, (a) the proceeds of all disbursements of the Tl FIA Loan may be used only to pay or to reimburse the Commission for Eligible Project Costs incurred by the Commission in connection with the Project, and (b) such disbursements will be made pursuant to a requisition made by the Commission in the form set forth in the TIFIA Loan Agreement and approved by the TIFIA Lender, which form must includes statements to the effect that the Commission (i) is in compliance with all of the terms and conditions ofthe TIFIA Loan Agreement and the Master Indenture and there does not currently exist an Event of Default under the TIFIA Loan Agreement or an event of default under the Master Indenture or any event which with the giving of notice or the passage of time or both would constitute such an Event of Default or event of default and as of the date of the draw; (ii) all documentation evidencing the Eligible Project Costs to be paid for or reimbursed by the disbursement has been delivered by the Commission as set forth in the TIFIA Loan Agreement; and (iii) the amount of the Requisition, together with all prior Requisitions, does not exceed the amount of the TIFIA Loan, and the amount of the Requisition together with the sum of all disbursements ofTIFIA Loan proceeds made and to be made for 57023390.6 35 83
the current year will not exceed the cumulative disbursements through the end of the current year as set forth in the Anticipated TIFIA Loan Disbursement Schedule set forth in the TIFIA Loan Agreement. In addition to the foregoing, each of the following conditions precedent must be satisfied or waived in writing by the TIFIA Lender in its sole discretion: (a) the Commission has certified as to the absence of debarment or suspension or voluntary exclusion from participation in Government contracts, procurement and other matters and has provided to the TIFIA Lender a certificate to that effect in the form attached to the TIFIA Loan Agreement, (b) the Commission has delivered to the TIFJA Lender satisfactory evidence of compliance with the requirements of the National Environmental Policy Act of 1969 (42 U.S.C. § 4321 et seq.), (c) the Commission has provided to the TJFJA Lender satisfactory evidence that the Project has satisfied the applicable planning and programmatic requirements of 23 U.S.C. §§134 and 135, (d) the Commission has demonstrated to the TIFJA Lender's satisfaction that the funds forecasted to be available under the Base Case Projections will be sufficient to complete the Project, (e) the Commission has provided certified copies of all available agreements and any plans of acquisition related to the acquisition or control of any Project right-of-way to be acquired with the proceeds of the TIFIA Loan, (e) the Commission has demonstrated to the TIFIA Lender's satisfaction that it has all necessary, permits and governmental approvals necessary to commence construction, except those required in the TIFIA Loan Agreement to be obtained by the Design-Build Contractor pursuant to the Design-Build Contract and delivered to the TIFIA Lender, and (f) the Commission has delivered to the to the TIFIA Lender a certified schedule acceptable to the TlFlA Lender demonstrating that the projected Revenues shall be sufficient to meet the Loan Amortization Schedule and meet the requirements of the Rate Covenant. The Tl FIA Lender is entitled to withhold approval of any pending or subsequent requests for the disbursement ofTIFJA Loan proceeds ifthe Commission (i) fails to pay any principal or interest on the TIFIA Loan when the same is due and payable; or (ii) applies TIFIA Loan proceeds for purposes other than payment of, or reimbursement for, Eligible Project Costs which have been the subject of an approved disbursement request under the TIFlA Loan Agreement; or (iii) knowingly takes any action, or omits to take any action, amounting to fraud or violation of any applicable federal or local criminal law, in connection with the transactions contemplated by the TJFIA Loan Agreement; or (iv) an Event of Default under the TIFIA Loan Agreement has occurred and is continuing; or (v) fails to construct the Project in a manner consistent with plans, specifications, engineering reports or facilities plans previously submitted to and approved by the TIFIA Lender, or with good engineering practices, where such failure prevents or materially impairs the Project from fulfilling its intended purpose, or prevents or materially impairs the ability of the TIFIA Lender to monitor compliance by the Commission with applicable federal or local law pertaining to the Project, or with the terms and conditions of the TIFIA Loan Agreement; or (vi) fails to observe or comply with any applicable federal or local law, or any term or condition of the TJFIA Loan Agreement; or (vii) fails to deliver documentation evidencing Eligible Project Costs claimed for disbursement at the times and in the manner specified by the TIFIA Loan Agreement; and such failure continues for a period of more than thirty (30) days following written notice from the TIFIA Lender to the Commission, the TIFIA Lender shall be entitled to withhold, from any Requisition received after such thirty (30) day period has expired, and until such failure is cured or corrected, an amount determined by the TIFIA Lender (in its sole discretion) to be adequate for the cure or correction of such failure, which amount shall be stated in such notice; provided, that if the nature of the failure is such that it cannot reasonably be cured or corrected within such thirty (30) day period, the TIFIA Lender shall not withhold any disbursement by reason of such failure if the Commission commences cure or correction within such thirty (30) day period and thereafter diligently completes such cure or correction within a further reasonable time period. 57023390.6 36 84
Default under TIFIA Loan Agreement. As described above, the TIFIA Lender is not required to fund the TIFIA Loan if a default under the TIFIA Loan Agreement has occurred and is continuing. An event of default exists under the TIFlA Loan Agreement if: (a) The Commission fails to pay any of the principal amount of or interest on the TIFIA Loan (including, without limitation, TIFIA Debt Service required to have been paid pursuant to the TIFIA Loan Agreement, and any mandatory prepayment required pursuant to the TIFIA Loan Agreement) (each a "Payment Default"); or (b) The Commission fails to observe or perform any covenant, agreement or obligation of the Commission under the TIFIA Loan Agreement, the TIFJA Bond or any other TIFIA Loan Document (other than in the case of any Payment Default any Development Default, and such failure shall not be cured within 30 days after receipt by the Commission from the TIFIA Lender of written notice thereof; provided, however, that if such failure is capable of cure but cannot reasonably be cured within such 30-day period, then no Event of Default shall be deemed to have occurred or be continuing under this clause (ii) if and so long as within such 30-day period the Commission shall commence actions reasonably designed to cure such failure and shall diligently pursue such actions until such failure is cured, provided such failure is cured within 180 days; or (c) The Commission fails to complete the Project by , 2017, unless the Commission demonstrates to the TIFIA Lender's satisfaction that it is proceeding with the construction of the Project with due diligence toward a date acceptable to the TlFIA Lender (a "Development Default"). In such a case, the TIFIA Lender may: (A) suspend the disbursement of the TIFIA Loan proceeds under the TIFIA Loan Agreement; and (B) pursue such other remedies as provided in the TIFIA Loan Agreement, including declaring the TIFIA Default Rate in effect. The Commission shall immediately repay any unexpended TIFJA Loan proceeds previously disbursed to the Commission. The Commission has the right to amend the construction schedule to extend the date for Substantial Completion for a period of up to 60 days (unless a longer extension is required due to the occurrence of an Uncontrollable Force) within thirty (30) days of receipt of notice of an alleged Development Default; provided that the Commission shall provide the TIFIA Lender with (x) a remedial plan with respect to the construction of the Project (a "Remedial Plan") reviewed by a general engineering consultant satisfactory to the TIFIA Lender and (y) a certificate from such general engineering consultant concluding that Substantial Completion is likely to occur by the date specified in the Remedial Plan, and the TIFIA Lender approves the Remedial Plan (such approval not to be unreasonably withheld), or (d) Any of the representations, warranties or certifications of the Commission made in or delivered pursuant to the TlFlA Loan Documents shall prove to have been false or misleading in any material respect when made; or (e) (A) Any of the representations, warranties or certifications of the Commission made in or delivered pursuant to the Master Indenture, or made in or delivered pursuant to the documents (the "Other Loan Documents") under which any Other Material Indebtedness shall be created or incurred, shall prove to be false or misleading in any material respect (each a "Misrepresentation Cross Default"), or any default shall occur in respect of the performance of any covenant, agreement or obligation of the Commission under the Master Indenture or the Other Loan Documents, and such default shall be continuing after the giving of any applicable notice and the expiration of any applicable grace period specified in the Master Indenture or the Other Loan Documents (as the case may be) with respect to such default (each a "Covenant Cross Default"), if the effect of such Misrepresentation Cross Default or Covenant Cross Default shall be to permit the immediate acceleration of the maturity of any or all of the Other Material Indebtedness, and, in the case of any such Misrepresentation Cross Default or Covenant Cross Default, the Commission shall have failed to cure such Misrepresentation Cross Default or 57023390.6 37 85
Covenant Cross Default or to obtain an effective written waiver thereof within 30 days after receipt of written notice thereof from the Tl Fl A Lender; or (B) The Commission defaults in the timely performance of any covenant, agreement or obligation under any Related Document or any Related Document shall be terminated prior to its scheduled expiration (unless in any case such default or termination could not reasonably be expected to have a Material Adverse Effect), and such default shall be continuing after the giving of any applicable notice and the expiration of any applicable grace period specified in the Master Indenture or the Other Loan Documents (as the case may be) with respect to such default and the Commission shall have failed to cure such default or to obtain an effective written waiver thereof, or to obtain an effective revocation of such termination (as the case may be), within 30 days after receipt of written notice thereof from the TIFIA Lender; or (f) One or more judgments for the payment of money in an aggregate amount in excess of [$2,000,000] (inflated annually by CPI) and not otherwise covered by insurance or other reserves shall be rendered against the Commission relating to the Toll Road and the same shall remain undischarged for a period of 30 consecutive days during which execution shall not be effectively stayed; (g) [Failure to Maintain Existence]; or (h) A Bankruptcy Related Event shall occur; or (i) Operation of the Project shall cease for a continuous period of not less than 180 days unless' such cessation of operations shall occur by reason of an Uncontrollable Force and the Commission shall have in force an insurance policy or policies under which the Commission is entitled to recover substantially all Indenture Debt Service on Other Indenture Obligations, Debt Service on the TIFJA Bond and costs and expenses ofthe Commission during such cessation of operations. Whenever any Event of Default under the TIFIA Loan Agreement shall have occurred and be continuing, the TIFIA Lender shall be entitled and empowered to institute any actions or proceedings at law or in equity for the collection of any sums due and unpaid under the TIFIA Loan Agreement or under the TIFIA Bond or the other TIFIA Loan Documents, and may prosecute any such judgment or final decree against the Commission including confession of judgment by the Commission against the Commission and collect in the manner provided by law the moneys adjudged or decreed to be payable from the Trust Estate, and the TIFIA Lender may take such other actions at law or in equity as may appear necessary or desirable to collect all amounts payable by Commission under the TJFIA Loan Agreement, the TIFIA Bond or the other TIFIA Loan Documents then due and thereafter to become due, or to enforce performance and observance of any obligation, agreement or covenant of the Commission under the TIFIA Loan Agreement, the TJFlA Bond or the other TIFlA Loan Documents. Whenever any Event of Default under the TIFIA Loan Agreement involving fraud, misrepresentation, false claims, or similar criminal acts or acts of malfeasance or wrongdoing, shall have occurred and be continuing, the TJFJA Lender may suspend or debar the Commission from further participation in any Government program administered by the TIFJA Lender and to notify other departments and agencies of such default. See "RISK FACTORS -Construction Risks -Conditions to Disbursement under the TIFIA Loan Agreement." The TIFIA Bond will be issued and secured as a subordinate and junior obligation under the Indenture to the Series 2013 Bonds, except as provided below. 57023390.6 38 86
Upon the occurrence and during the continuance of any Bankruptcy Related Event of the Commission, the TIFIA Obligations will, if the owner of such TIFIA Obligations is the TIFIA Lender or another governmental lender at such time, automatically and without action on the part of the TIFJA Lender or any other person, immediately become Parity Obligations, and be of equal rank and on a parity with the Senior Lien Bonds and other Parity Obligations, and the TIFIA Lender will become and be entitled to all rights of an owner of Senior Lien Bonds under the Indenture (including, without limitation, the right of payment pro rata with other Senior Lien Bonds and Parity Obligations under the Indenture). Upon such event, the money and investments held in the TIFIA Fund will be transferred by the Trustee to the Senior Lien Bond Debt Service Fund, and the money and investments held in the TJFIA Reserve Fund will be transferred by the Trustee to the Senior Lien Bond Debt Service Reserve Fund. As used in the TJFIA Loan Agreement and the Indenture, the term Bankruptcy Related Event means (a) the appointment of a receiver, trustee, liquidator, custodian, sequestrator, conservator or similar official for the Commission or for a substantial part of the assets of the Commission, or (b) the Commission shall (i) apply for or consent to the appointment of a receiver, trustee, liquidator, custodian, sequestrator, conservator or similar official for the Commission or a substantial part of the assets of the Commission, or (ii) become unable generally to pay its debts as they become due, or (iii) make a general assignment for the benefit of creditors, or (iv) be adjudicated a bankrupt or insolvent, or (v) commence a voluntary case under any law relating to insolvency, or file a voluntary petition seeking liquidation, reorganization, an arrangement with creditors or an order for relief, or otherwise seeking to take advantage of any law relating to insolvency, or (vi) take any action for the purpose of effecting any of the foregoing. See "APPENDIX D -SUMMARY OF CERTAIN PROVISIONS OF THE TlFIA LOAN AGREEMENT" for additional information regarding the TIFIA Loan. Series 2013 Bonds Delivery Contingency The delivery and sale of Series 2013 Bonds will be conditioned upon and contemporaneous with the delivery and sale of the 2013 Sales Tax Revenue Bonds and the closing ofthe TIFIA Loan Agreement providing for the TIFIA Loan. 57023390.6 39 87
DEBT SERVICE REQUIREMENTS The following table is the annualized debt service schedule for the Series 2013 Bonds assuming no redemption other than mandatory sinking fund redemption. Fiscal Year Ending June 30 Series 2013A Bonds Principal Interest Series 2013B Bonds Maturity Value ESTIMATED CASH FLOW AND DEBT SERVICE COVERAGE Total Debt Service The table on the following page shows the estimated Toll Revenues of the Toll Road for the years ending December 3 I, 20_ through December 31, 20_, both inclusive, as estimated by Stantec. See "APPENDIX B-RIVERSIDE COUNTY 91 EXPRESS LANES EXTENSION INVESTMENT GRADE STUDY -Table 9-1 (Traffic and Revenue Estimates, Revenue Maximization Toll Policy." Based on such projections for estimated Toll Revenues, the table on the following page has been compiled to show estimated coverage of debt service (for the Series 2013 Bonds and the TJFIA Loan) after deducting estimated Operation and Maintenance Expenses for the Toll Road. Actual operating results achieved during the projection period may vary from those presented below and such variations may be material. See "RISK FACTORS-General-Forward-Looking Statements." 57023390.6 40 88
Year En~ing December 31 Toll Revenues<'l Estimated Cash Flow and Debt-Service Coverage Table Operation and Maintenance Expensest~l Net Revenues Available for Debt Service Series 2013 Bonds Debt Service Senior Bond Debt Service Coverage <Il The Commission's authority to levy tolls continues for __ years after the final maturity of the Series 2013 Bonds. <2> Estimates were prepared by Stantec in their Riverside County 91 Express Lanes Extension Investment Grade Study attached hereto as APPENDIX B. Source: The Commission. 57023390.6 41 89 Mandatory TIFIA Bond Debt Service Total Debt Service Cover·age
RISK FACTORS The following is a discussion of certain risk factors that should be considered in evaluating an investment in the Series 2013 Bonds. This discussion does not purport to be either comprehensive or definitive. The order in which risks are presented is not intended to reflect either the likelihood that a particular event will occur or the relative significance of such an event. Moreover, there may well be other risks associated with an investment in the Series 2013 Bonds in addition to those set fo11h herein. General The financial forecasts in this Official Statement are based generally upon certain assumptions relating to the timing and costs of the Project, and upon projections as to estimated Toll Revenues and Operation Maintenance Expenses. Inevitably, some underlying assumptions and projections used to develop the forecasts will not be realized, and unanticipated events and circumstances may occur. Therefore, the actual results achieved during the forecast periods will vary from the forecasts, and such differences may be material. Forward-Looking Statements. This Official Statement and Appendices hereto contain "forward-looking statements," which generally can be identified with words or phrases such as "anticipates," believes," "could," "estimates," "expects," "foresees," "may," "plan," "predict," "should," "will" or other words or phrases of similar import. All statements included in this Official Statement and Appendices hereto that any person expects or anticipates will, should or may occur in the future, including but not limited to, the projections in the Riverside County 91 Express Lanes Extension Investment Grade Study, are forward-looking statements. These statements are based on assumptions and analysis made by the Commission and Stantec, as applicable, in light of their experience and perception of historical trends, current conditions and expected future developments as well as other factors they believe are appropriate in the circumstances. However, whether actual results and developments will conform with expectations and predictions is subject to a number of risks and uncertainties, including, without limitation, the information discussed under this "RISK FACTORS" caption of this Official Statement as well as additional factors beyond the Commission's control. The important risk factors and assumptions described under that caption and elsewhere in this Official Statement could cause actual results to differ materially from those expressed in any forward-looking statement. All of the forward-looking statements made in this Official Statement and any Appendices hereto are qualified by these cautionary statements. There can be no assurance that the actual results or developments anticipated will be realized or, even if substantially realized, that they will have the expected consequences to or effects on the Commission's revenues or operations. All subsequent forward-looking statements attributable to the Commission or persons acting on their behalf are expressly qualified in their entirety by the factors and assumptions described above and in any documents containing those forward-looking statements. All forward-looking statements included in this Official Statement are based on information available to the Commission and the other aforementioned entities on the date hereof, and neither the Commission nor any of such other aforementioned entities assumes any obligation to update any such forward-looking statements. The forward-looking statements herein are necessarily based on various assumptions and estimates that are inherently subject to numerous risks and uncertainties, including risks and uncertainties relating to the possible invalidity of the underlying assumptions and estimates and possible changes or developments in social, economic, business, industry, market, legal and regulatory circumstances and conditions and actions taken or omitted to be taken by third parties, including customers, suppliers, business partners and competitors, and legislative, judicial and other governmental authorities and officials. Assumptions related to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are 57023390.6 42 90
difficult or impossible to predict accurately and, therefore, there can be no assurance that the forward-looking statements included in this Official Statement will prove to be accurate. Limited Obligalions. The Series 2013 Bonds are special, limited obligations of the Commission payable solely from, and secured solely by a first lien on and pledge of the Trust Estate, which consists primarily of Toll Revenues. Toll Revenues will be generated only after the substantial completion of the Project. Other than the pledge of the Trust Estate, the Commission has not mortgaged, assigned or pledged any interest in any real or personal property or improvements, including any interest in the Toll Road or any expansions or extensions thereto, as security for payment of the Series 2013 Bonds. See "SOURCES OF PAYMENT AND SECURITY FOR THE SERIES 2013 BONDS-Sources of Payment -Limited Obligations." Dilution of Senior Lien Security Upon Bankruptcy Related Event. Upon the occurrence of a Bankruptcy Related Event while the TIFIA Lender or another governmental lender owns the TlFIA Bond, the TIFIA Bond will be deemed to be a Parity Obligation. In such event, the TIFIA Bond would be secured by and payable from the Revenue on a parity with other Outstanding Bonds. Furthermore, in such event, the TIFIA Lender, as holder of greater than a majority of the Senior Obligations then Outstanding, would be entitled to exercise remedies under the Indenture without the consent of the owners of the Series 20 13 Bonds. Limitation of Remedies Under the Indenture. The remedies available to Owners of the Series 2013 Bonds upon an Event of Default under the Indenture are limited to the seeking of specific performance or a writ of mandamus or other suit, action or proceeding compelling and requiring the Commission and its officers to observe and perform any covenant, condition or obligation prescribed in the Indenture. No Right to Accelerate Debt Service. NO ACCELERATION REMEDY IS AVAILABLE TO OWNERS OF THE SERIES 2013 BONDS. Owners of the Series 2013 Bonds will, therefore, be able to collect principal and interest that become due after an Event of Default only from the Revenues (after payment of Operation and Maintenance Expenses) or other prope1ty included in the pledge under the Indenture and only when such principal and interest are scheduled to be paid. Enforceability of Remedies. The remedies available under the Indenture depend in many respects upon regulatory and judicial actions that are often subject to discretion and delay. Under existing law, such remedies may not be readily available. In addition, enforcement of such remedies (i) may be subject to general principles of equity which may permit the exercise of judicial discretion, (ii) are subject to the exercise in the future by the State and its agencies and political subdivisions of the police power inherent in the sovereignty of the State, (iii) are subject, in part, to the provisions ofthe United States Bankruptcy Code and other applicable bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or affecting the enforcement of creditors' rights generally, now or hereafter in effect, and (iv) are subject to the exercise by the United States of the powers delegated to it by the federal Constitution. The various legal opinions to be delivered concurrently with the delivery of the Series 2013 Bonds will be qualified to the extent that the enforceability of certain legal rights related to the Series 2013 Bonds is subject to limitations imposed by bankruptcy, reorganization, insolvency or other similar laws affecting the rights of creditors generally and by equitable remedies and proceedings generally. 57023390.6 43 91
Constmction Risks Construction Delays. Generally, in construction projects of the magnitude of the Project, there is a possibility of time delays and cost increases resulting from (i) design and construction problems and resulting change orders, (ii) escalation of prices or wages or shortages of labor or materials, (iii) environmental litigation or environmental administrative matters, (iv) the unavailability or cost of acquiring right-of-way, (v) utility relocation problems, (vi) archaeological, historic and unidentified or misidentified subsurface conditions, (vii) hazardous materials, (viii) force majeure events, and (ix) litigation. As a result, there can be no assurance that the costs of the Project will not exceed current estimates, or that the completion of the Project will not be delayed beyond the estimated completion dates. Variations in costs estimates and delays in construction could be material. [DESCRIBE IN DETAIL MAJOR APPROVALS THAT NEED TO BE OBTAINED INCLUDING BNSF CONSTRUCTION & MAINTENANCE AGREEMENTS] While Substantial Completion Date for the Project is scheduled for , interest on the Series 2013 Bonds has been capitalized through . No assurances can be given that the amount of capitalized interest will be sufficient to pay debt service on the Series 2013 Bonds if Substantial Completion of the Project is significantly delayed. Conditions to Drawing on the TIFIA Loan Agreement. The Commission expects to draw funds under the TIFJA Loan Agreement to finance the Project. Failure to meet certain disbursement conditions set forth in the TIFIA Loan Agreement as well as an event of default under the TIFIA Loan Agreement may result in the suspension or delay in the disbursement of proceeds of the TIFT A Loan Agreement. No assurances can be given that the amount of capitalized interest will be sufficient to pay debt service on the Series 2013 Bonds if Substantial Completion of the Project is significantly delayed by suspended or delayed funding under the TIFIA Loan Agreement. Payment and Performance Bonds. A potential purchaser of the Series 2013 Bonds can have no assurance that any contractor or subcontractor, guarantor, surety or property insurer will be willing or capable of meeting its responsibilities in connection with the Project, or that the issuer of any performance or payment bond, any guarantee or any property insurance policy will honor or will be able to honor a claim in a timely manner. The total contract price under the DB Contract is$ , and the DB Contract requires payment and perfonnance bonds in an amount equal to $50 million at the time of the initial notice to proceed and $250 million each upon the issuance of the final notice to proceed. See "THE RIVERSIDE SR-91 CORRIDOR IMPROVEMENT PROJECT-Construction of the Project." Although the Commission does not expect its payment obligations outstanding at any one time under the aforementioned construction contracts to exceed the amount of the payment bonds provided by the respective contractor, there can be no assurance that the payment and performance bonds provided by any contractor will be sufficient to satisfy the Commission's payment or perfonnance obligations under the respective construction contract. Not all events are covered under such payment and performance bonds. The issuer of payment and performance bonds is not guaranteeing payment or performance under all circumstances, and the issuer of such bonds may assert any defenses it may have for payment or performance. Moreover, in the event that a default occurs under any construction contract, there is a possibility of litigation between the Commission and the respective contractor, or between the Commission and the providers of the performance bonds and payment bonds, which could further delay the construction and opening of the respective Project. In addition, there can be no assurance that the Commission could recover any amounts under any performance bonds or payment bonds. 57023390.6 44 92
Liquidated Damages. The amount of liquidated damages that the Design-Builder will be required to pay pursuant to the DB Contract for each calendar day that Substantial Completion is not met in connection with opening of the Project to traffic will be limited by contract and may not be sufficient to cover all of the Commission's losses in the event of a delay or a failure to complete the required work in accordance with the plans and specifications, and other requirements of the contract documents. Liquidated damages, if paid, may not be sufficient to enable the Commission to pay the principal and interest on the Series 2013 Bonds and the other amounts required to be paid under the Indenture. There are numerous events that could cause an extension of the respective construction schedule and that could result in increased costs for the Project. Liquidated damages are payable only under certain circumstances and even if paid, may not be sufficient to cover debt service payments on the Series 2013 Bonds. In addition, collection of liquidated damage may require extensive litigation and no assurance can be provided that such amounts will in fact be collected. In addition, the Design-Builder has not waived its rights to contest a demand for payment of liquidated damages. Events of Force Majeure. Construction and operation of the Project are at risk from events of force m~eure, such as earthquakes, or other natural disasters, epidemics, blockades, rebellions, war, riots, acts of sabotage, terrorism or civil commotion, and spills of hazardous materials, among other events. Construction or operations may also be stopped or delayed from non-casualty events such as discovery of additional archaeological artifacts, changes in law, delays in obtaining or renewing Commission-provided permits, revocation of such permits and approvals and litigation, among other things. Limited Insurance Coverage. Although the Contractor is required to provide certain types of insurance coverage during construction of the Project (including delay coverage for loss of revenue due to accidental physical damage to the Project with valuation based on estimated toll revenues with a period of indemnity limited to a period of no less than one year and minimum loss valuation of $95,000 per day on an agreed basis), such required insurance policies do not cover damage and delay from all events that could interrupt construction. Risks that may not be insurable/insured include the following risks that may delay the project without causing property damage: epidemics, blockades, strikes and riots. Other risks that may not be insured/insurable include war, nuclear events, criminal or intentional acts of the insured, unforeseeable environmental or geological conditions, discovery of archaeological artifacts, changes in law, bankruptcy and acts of terrorism. Insurance policies may not be maintained or obtainable in amounts that would be sufficient or be paid in sufficient time in all events to pay all of the Commission's expenses under the Indenture, including debt service on the Series 2013 Bonds. For a description of the types and amounts of insurance coverage to be provided during construction of the Project, see "THE RIVERS I DE SR-91 CORRIDOR IMPROVEMENT PROJECT-Construction of the Project." For a description of the covenants of the Commission to maintain insurance for the Toll Road, see "APPENDIX D-SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE-Covenants of the Commission-Insurance." Operating Risks The ability for the Toll Road to generate Toll Revenues in amounts sufficient to pay debt service on the Series 2013 Bonds when due will be subject to and could be materially and adversely affected by the risks inherent in the operation of any toll facility. The ability to repay the Series 2013 Bonds will be dependent on the volume of traffic that utilizes the Toll Road, as well as the ability of the Commission and its vendor's computer systems to accurately process data. Revenues to be generated through such use will be influenced by numerous factors, including, among others, the ability to manage toll evasion; the ability to control expenses; the availability of adequately-trained personnel; population, employment and income trends within the region; the congestion on alternative freeways, highways, and streets; time 57023390.6 45 93
savings experienced by utilizing the Toll Road; the toll rates; the availability and price of fuel; and the construction of new or improved competitive roadways or other transit facilities. No Non-Compete Provisions. Neither the Indenture nor the TIFIA Loan Agreement contains restrictions on the ability of the Commission or Caltrans to construct new or improved roadways or other transit facilities that may compete with the Toll Road. Motor Fuel Prices and Taxes. There is no assurance that motor fuel will remain in adequate supply or that motor fuel prices and federal and State motor fuel taxes will not increase. Increases in motor fuel prices could negatively impact the Toll Revenues of the Commission. Additionally, if motor fuel prices increase, it could have a material adverse effect on the economy of the regions served by the Project and the Toll Revenues of the Commission. Traffic and Revenue Report Assumptions. The revenue forecasts (the "Revenue Forecasts") in the Riverside County 91 Express Lanes Extension Investment Grade Study are based upon certain assumptions described in such reports and upon certain additional assumptions described above. See "APPENDIX B-RIVERSIDE COUNTY 91 EXPRESS LANES EXTENSION INVESTMENT GRADE STUDY." Based upon such assumptions, Stantec has expressed its opinion that such revenue forecasts are reasonable and have been prepared in accordance with accepted practice for such studies. As provided in therein, however, such reports are not a guarantee of any future events or trends and the forecasts therein are subject to future economic and social conditions and demographic developments that cannot be predicted with certainty. Further, any of the estimates and assumptions in such reports are inherently subject to significant economic and competitive uncertainties and contingencies, many of which are beyond the control of the Commission. Failure to achieve or realize any of the assumptions described above may have a materially adverse effect upon the Toll Revenues actually realized. Maintenance Costs. Successful operation of the Toll Road will require timely and complete maintenance and replacement of components of the Toll Road. Although the Commission has covenanted in the Indenture to maintain the Toll Road, no assurance can be given that sufficient funds will be available to adequately maintain the Toll Road. Any significant deterioration in the Toll Road may result in increased operating costs and in reduced usage (or even in temporary lane closures) and may adversely affect the amount offunds available to pay debt service on the Series 2013 Bonds. Seismic or Other Casualty to the Toll Road. ln the event of an earthquake, or other similar significant damage to the Toll Road, complete closure of the Toll Road might be required during the time needed for repair. In the event the Toll Road is destroyed or damaged by earthquake or some cause other than ordinary and usual usage thereof, amounts, if any, received from the proceeds of insurance may be used to pay all or any part ofthe cost of reconstructing, restoring, repairing or rehabilitating the Toll Road (including the toll collection systems). There can be no assurance that such amounts will be received, or if received will be sufficient to fully restore, repair or rehabilitate the Toll Road. FINANCIAL STATEMENTS The financial statements of the Commission for the Fiscal Year ended June 30, 2012, included in APPENDIX A of this Official Statement, have been audited by McGiadrey LLP, certified public accountants, as stated in their report therein. McGiadrey 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 infonnation concerning the accuracy, completeness or fairness of the statements made in this Official Statement, and no opinion is expressed by McGiadrey LLP with respect to any event subsequent to the date of its report. The Commission represents that, except as described herein, there has been no material adverse change in its financial position since June 30, 2012. 57023390.6 46 94
LITIGATION There is not now pending any litigation restraining or enjoining the issuance or delivery of the Series 2013 Bonds or questioning or affecting the validity of the Series 2013 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. LEGAL MATTERS The validity of the Series 2013 Bonds and certain other legal matters are subject to the approving opinion of Orrick, Herrington & Sutcliffe LLP, Bond Counsel to the Commission. A complete copy of the proposed form of Bond Counsel opinion is contained in APPENDIX H hereto. Bond Counsel undertakes no responsibility for the accuracy, completeness or fairness of this Official Statement. Compensation paid to Bond Counsel, Disclosure Counsel and Underwriters' Counsel is conditioned upon the successful issuance of the Series 2013 Bonds. Certain legal matters will be passed upon for the Commission by Fulbright & Jaworski L.L.P., Los Angeles, California, as Disclosure Counsel, and by Best Best & Krieger LLP, Riverside, California, the General Counsel for the Commission. Certain legal matters will be passed upon for the Underwriters by Stradling Yocca Carlson & Rauth, a Professional Corporation, Newport Beach, California. TAX MATTERS In the ·opinion of Orrick, Herrington & Sutcliffe LLP, Bond Counsel to the Commission ("Bond Counsef'), based upon an analysis of existing laws, regulations, rulings and court decisions, and assuming, among other matters, the accuracy of certain representations and compliance with certain covenants, interest on the Series 20 J3 Bonds is excluded from gross income for federal income tax purposes under Section I 03 of the Internal Revenue Code of I 986 (the "Code") and exempt from State of California personal income taxes. Bond Counsel is also of the opinion that interest on the Series 2013 Bonds is not a specific preference item for purposes of the federal individual or corporate alternative minimum taxes, although Bond Counsel observes that such interest is included in adjusted current earnings in calculating corporate alternative minimum taxable income. A complete copy of the proposed form of opinion of Bond Counsel is included herein as APPENDIX H. To the extent the issue price of any maturity of the Series 2013 Bonds is less than the amount to be paid at maturity of such Series 2013 Bonds (excluding amounts stated to be interest and payable at least annually over the term of such Series 2013 Bonds), the difference constitutes "original issue discount," the accrual of which, to the extent properly allocable to each owner thereof, is treated as interest on the Series 2013 Bonds which is excluded from gross income for federal income tax purposes and State of California personal income taxes. For this purpose, the issue price of a particular maturity of the Series 2013 Bonds is the first price at which a substantial amount of such maturity of the Series 2013 Bonds is sold to the public (excluding bond houses, brokers, or similar persons or organizations acting in the capacity of underwriters, placement agents or wholesalers). The original issue discount with respect to any maturity of the Series 2013 Bonds accrues daily over the term to maturity of such Series 2013 Bonds on the basis of a constant interest rate compounded semiannually (with straight-line interpolations between compounding dates). The accruing original issue discount is added to the adjusted basis of such Series 2013 Bonds to determine taxable gain or loss upon disposition (including sale, redemption, or payment on maturity) of such Series 2013 Bonds. Owners of the Series 2013 Bonds should consult their own tax advisors with respect to the tax consequences of ownership of Series 2013 Bonds with original issue discount, including the treatment of purchasers who do not purchase such Series 2013 Bonds in the 57023390.6 47 95
original offering to the public at the first price at which a substantial amount of such Series 2013 Bonds is sold to the pub! ic. Series 20 I 3 Bonds purchased, whether at original issuance or otherwise, for an amount higher than their principal amount payable at maturity (or, in some cases, at their earlier call date) ("Premium Bonds") will be treated as having amortizable bond premium. No deduction is allowable for the amortizable bond premium in the case of bonds, like the Premium Bonds, the interest on which is excluded from gross income for federal income tax purposes. However, the amount of tax-exempt interest received, and a purchaser's basis in a Premium Bond, will be reduced by the amount of amortizable bond premium properly allocable to such purchaser. Owners of Premium Bonds should consult their own tax advisors with respect to the proper treatment of amortizable bond premium in their particular circumstances. The Code imposes various restrictions, conditions and requirements relating to the exclusion from gross income for federal income tax purposes of interest on obligations such as the Series 2013 Bonds. The Commission has made certain representations and covenanted to comply with certain restrictions, conditions and requirements designed to ensure that interest on the Series 20 I 3 Bonds will not be included in federal gross income. Inaccuracy of these representations or failure to comply with these covenants may result in interest on the Series 2013 Bonds being included in gross income for federal income tax purposes, possibly from the date of original issuance of the Series 20 I 3 Bonds. The opinion of Bond Counsel assumes the accuracy of these representations and compliance with these covenants. Bond Counsel has not undertaken to determine (or to inform any person) whether any actions taken (or not taken), or events occurring (or not occurring), or any other matters coming to Bond Counsel's attention after the date of issuance of the Series 2013 Bonds may adversely affect the value of, or the tax status of interest on, the Series 2013 Bonds. Accordingly, the opinion of Bond Counsel is not intended to, and may not, be relied upon in connection with any such actions, events or matters. Although Bond Counsel is of the opinion that interest on the Series 2013 Bonds is excluded from gross income for federal income tax purposes and is exempt from State of California personal income taxes, the ownership or disposition of, or the accrual or receipt of interest on, the Series 2013 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. Current and future legislative proposals, if enacted into Jaw, clarification of the Code or court decisions may cause interest on the Series 2013 Bonds to be subject, directly or indirectly, in whole or in part, to federal income taxation or to be subject to or exempted from state income taxation, or otherwise prevent Owners from realizing the full current benefit of the tax status of such interest. The introduction or enactment of any such legislative proposals or clarification of the Code or court decisions may also affect, perhaps significantly, the market price for, or marketability of, the Series 2013 Bonds. Prospective purchasers of the Series 2013 Bonds should consult their own tax advisors regarding the potential impact of any pending or proposed federal or state tax legislation, regulations or litigation, as to which Bond Counsel is expected to express no opinion. The op1111on of Bond Counsel is based on current legal authority, covers certain matters not directly addressed by such authorities, and represents Bond Counsel's judgment as to the proper treatment of the Series 2013 Bonds for federal income tax purposes. 1t 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, 57023390.6 48 96
the applicable regulations, the interpretation thereof or the enforcement thereof by the IRS. The Commission has covenanted, however, to comply with the requirements of the Code. Bond Counsel's engagement with respect to the Series 2013 Bonds ends with the issuance of the Series 2013 Bonds, and, unless separately engaged, Bond Counsel is not obligated to defend the Commission or the beneficial owners regarding the tax exempt status of the Series 2013 Bonds in the event of an audit examination by the IRS. Under current procedures, parties other than the Commission and its 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 Internal Revenue Service, including but not I im ited to selection of the Series 2013 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 Series 2013 Bonds, and may cause the Commission or the beneficial owners to incur significant expense. CONTINUING DISCLOSURE The Commission has agreed to execute the Continuing Disclosure Agreement and will covenant therein for the benefit of the beneficial owners o~ the Series 2013 Bonds to provide certain financial information and operating data relating to the Commission and the Toll Revenues by not later than nine months after the end of the Commission's prior fiscal year (the "Annual Reports"), and to provide notices of the occurrence of certain enumerated events (the "Listed Events"). The Annual Reports and notices of Listed Events will be filed with the MSRB. See "APPENDIX F -FORM OF CONTINUING DISCLOSURE AGREEMENT." 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. RATINGS The Series 2013 Bonds have received ratings of " " from Fitch Ratings ("Fitch") and " "from Standard & Poor's Ratings Services ("S&P"). An explanation of the significance of each such rating may be obtained from the company furnishing the rating. The ratings reflect only the views of such companies at the time such ratings are given, and the Commission makes no representation as to the appropriateness of the ratings. The Commission and the Commission's Financial Advisors furnished Fitch and S&P with certain information and materials relating to the Series 2013 Bonds that have not been included in this Official Statement. Generally, rating agencies base their ratings on the information and materials so furnished and on investigations, studies, and assumptions by the rating agencies. There is no assurance that a particular rating will be maintained for any given period of time or that it will not be lowered or withdrawn entirely if, in the judgment of the agency originally establishing the rating, circumstances so warrant. Except as described under the caption "CONTINUING DISCLOSURE" herein, neither the Commission nor the Underwriters has undertaken any responsibility to bring to the attention of the registered owners of the Series 2013 Bonds any proposed revision or withdrawal of the rating of the Series 20 J 3 Bonds or to oppose any such proposed revision or withdrawal. Any such change in or withdrawal of such rating could have an adverse effect on the market price or marketabi I ity of the Series 20 13 Bonds. 57023390.6 49 97
FINANCIAL ADVISOR The Commission has retained Fieldman, Rolapp & Associates, Irvine, California, as Financial Advisor in connection with the authorization and delivery of the Series 2013 Bonds. The Financial Advisor is not obligated to undertake, and has not undertaken to make, an independent verification or assume responsibility for the accuracy, completeness or fairness of the information contained in this Official Statement. The Financial Advisor is an independent financial advisory firm and is not engaged in the business of underwriting, trading or distributing municipal securities or other public securities. Compensation paid to the Financial Advisor is contingent upon the successful issuance of the Series 2013 Bonds. UNDERWRITING Merrill Lynch, Pierce, Fenner & Smith Incorporated and Goldman, Sachs & Co., as co-representatives of themselves, and J.P. Morgan Securities LLC (collectively, the "Underwriters"), as the Underwriters of the Series 2013 Bonds, have agreed to purchase the Series 20 13A Bonds and the Series 2013B Bonds from the Commission at an underwriting discount of$ and $ _____ , respectively, from the initial public offering prices therefor set forth on inside cover of this Official Statement. The Underwriters will be obligated to purchase all of the Series 2013 Bonds if any such obligations are purchased. The obligation of the Underwriters to purchase either series of the Series 2013 Bonds from the Commission is subject to certain customary conditions to delivery, including the sale and purchase of the other series of the Series 2013 Bonds to and by the Underwriters. The Series 2013 Bonds may be offered and sold to certain dealers and others at prices lower than such public offering prices, and such public offering prices may be changed, from time to time, by the Underwriters. The Underwriters and their respective affiliates are full service financial institutions engaged in various activities, which may include sales and trading, commercial and investment banking, advisory, investment management, investment research, principal investment, hedging, market making, brokerage and other financial and non-financial activities and services. Certain of the Underwriters and their respective affiliates have provided, and may in the future provide, a variety of these services to the Commission and to persons and entities with relationships with the Commission, for which they received or will receive customary fees and expenses. In the ordinary course of their various business activities, the Underwriters and their respective affiliates, officers, directors and employees may purchase, sell or hold a broad array of investments and actively trade securities, derivatives, loans, commodities, currencies, credit default swaps and other financial instruments for their own account and for the accounts of their customers, and such investment and trading activities may involve or relate to assets, securities and/or instruments of the Commission (directly, as collateral securing other obi igations or otherwise) and/or persons and entities with relationships with the Commission. The Underwriters and their respective affiliates may also communicate independent investment recommendations, market color or trading ideas and/or publish or express independent research views in respect of such assets, securities or instruments and may at any time hold, or recommend to clients that they should acquire, long and/or short positions in such assets, securities and instruments. OTHER MATTERS The financial data and other information contained herein have been obtained from the Commission's records, financial statements, and other sources that are believed to be reliable. There is no guarantee that any of the assumptions or estimates contained herein will be realized. All of the summaries do not purport to be complete statements of such provisions and reference is made to such 57023390.6 50 98
documents for further information. Reference is made to original documents in all respects. Copies may be obtained from the Commission. 57023390.6 RIVERSIDE COUNTY TRANSPORTATION COMMISSION By: 51 99 Executive Director
57023390.6 APPENDIX A COMMISSION AUDITED FINANCIAL STATEMENTS FOR FISCAL YEAR ENDED JUNE 30,2012 A-1 100
57023390.6 APPENDIXB RIVERSIDE COUNTY 91 EXPRESS LANES EXTENSION INVESTMENT GRADE STUDY B-1 101
57023390.6 APPENDIX C REPORT OF THE GENERAL ENGINEERING CONSULTANT C-1 102
57023390.6 APPENDIXD SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE D-1 103
57023390 6 APPENDIXE SUMMARY OF CERTAIN PROVISIONS OF THE 2013 TIFIA LOAN AGREEMENT E-1 104
57023390.6 APPENDIX F FORM OF CONTINUING DISCLOSURE AGREEMENT F-1 105
APPENDIX G BOOK-ENTRY SYSTEM The information in this Appendix F concerning The Depository Trust Company, New York, New York ("DTC'), and DTC's book-entry system has been obtained from DTC and the Commission and the Trustee take no responsibility for the completeness or accuracy thereof. The Commission and the Trustee cannot and do not give any assurances that DTC, Direct Participants (as defined below) or Indirect Participants (as defined below) will distribute to the Beneficial Owners (a) payments of interest, principal or premium, if any, with respect to the Series 2013 Bonds, (b) certificates representing ownership interest in or other confirmation of ownership interest in the Series 2013 Bonds, or (c) redemption or other notices sent to DTC or Cede & Co., its nominee, as the registered owner of the Series 2013 Bonds, or that they will do so on a timely basis, or that DTC, Direct Participants or Indirect Par1icipants will act in the manner described in this Appendix E. The Commission and the Trustee are not responsible or liable for the failure of DTC or any DTC Direct or Indirect Participant to make any payment or give any notice to a Beneficial Owner with respect to the Series 2013 Bonds or an error or delay relating thereto. The current "Rules" applicable to DTC are on file with the Securities and Exchange Commission and the current "Procedures" of DTC to be followed in dealing with DTC's Direct and Indirect Participants are on file with DTC. DTC will act as securities depository for the Series 2013 Bonds. The Series 2013 Bonds will be issued as fully-registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-registered certificate will be issued for each maturity of the Series 2013 Bonds, in the aggregate principal amount of such maturity, and will be deposited with DTC. DTC, the world's largest securities depository, is a limited-purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17 A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt issues, and money market instruments (from over I 00 countries) that DTC's participants ("Direct Participants") deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges between Direct Participants" accounts. This eliminates the need for physical movement of securities certificates. Direct Par1icipants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC'). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect Participants"). DTC has a Standard & Poor's rating of AA+. The DTC Rules applicable to Direct and Indirect Participants are on file with the Securities and Exchange Commission. More information about DTC can be found at www.dtcc.com. The information on such website is not incorporated herein by reference. Purchases of Series 2013 Bonds under the DTC book-entry system must be made by or through Direct Participants, which will receive a credit for the Series 2013 Bonds on DTC's records. The ownership interest of each actual purchaser of each Series 2013 Bond ("Beneficial Owner") is in turn to 57023390.6 G-1 106
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 Series 2013 Bonds are to be accomplished by entries made on the books of Direct and Indirect Par1icipants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in the Series 2013 Bonds, except in the event that use of the book-entry system for the Series 2013 Bonds is discontinued. To facilitate subsequent transfers, all Series 2013 Bonds deposited by Direct Participants with DTC are registered in the name of DTC's par1nership nominee, Cede & Co., or such other name as may be requested by an authorized representative of DTC. The deposit of the Series 2013 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 Series 2013 Bonds; DTC's records reflect only the identity of the Direct Participants to whose accounts such Series 2013 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 Series 2013 Bonds may wish to take certain steps to augment the transmission to them of notices of significant events with respect to the Series 2013 Bonds, such as redemptions, tenders, defaults, and proposed amendments to the Series 2013 Bond documents. For example, Beneficial Owners of the Series 2013 Bonds may wish to ascertain that the nominee holding the Series 2013 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. Redemption notices (if applicable) shall be sent to DTC. If less than all of the Series 2013 Bonds are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the Series 2013 Bonds unless authorized by a Direct Participant in accordance with DTC's MMI Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the Commission as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts the Series 2013 Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy). Payments of principal of, premium, if any, and interest on the Series 2013 Bonds will be made to Cede & Co., or such other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct Participants" accounts upon DTC's receipt of funds and corresponding detail information from the Commission or the Trustee, on the payable date in accordance with their respective holdings shown on DTC's records. Payments by Direct or Indirect Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and w_ill be the responsibility of such Participant and not of DTC, the Trustee, or the Commission, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal of, premium, if any, and interest on the Series 2013 Bonds to Cede & Co. (or such other nominee as may be requested by an authorized representative ofDTC) is the responsibility of the Commission or the Trustee, disbursement of 57023390.6 G-2 107
such payments to Direct Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants. DTC may discontinue providing its services as securities depository with respect to the Series 2013 Bonds at any time by giving notice to the Trustee and the Commission. Under certain circumstances, in the event that a successor depository is not obtained, Series 2013 Bond certificates are required to be printed and delivered. The Commission may decide to discontinue use of the system of book-entry transfers for the Series 2013 Bonds through DTC (or a successor securities depository). ln that event, Series 2013 Bond certificates will be printed and delivered as provided in the Indenture. In addition, the following provisions would apply: the principal or redemption price of the Series 2013 Bonds will be payable upon presentation thereof, at the principal corporate trust office of the Trustee, in San Francisco, California; interest on the Series 2013 Bonds will be payable by check mailed on each interest payment date to the registered owners thereof as shown on the registration books of the Trustee as of the close of business on the 151h day of the calendar month immediately preceding the applicable interest payment date (the "record date"), except that in the case of an owner of $1,000,000 or more in aggregate principal amount of Series 2013 Bonds, upon written request of such owner to the Trustee received at least I 0 days prior to the record date for the payment of interest, specifying the account or accounts to which such payment shall be made (which request shall remain in effect until revoked by such owner in a subsequent writing delivered to the Trustee), such interest shall be paid in immediately available funds by wire transfer to such account or accounts on the following interest payment date; and the Series 2013 Bonds will be transferable and exchangeable on the tenns and conditions provided in the Indenture. The information in this Appendix F concerning DTC and DTC's book-entry system has been obtained from sources the Commission believes to be reliable, but the Commission takes no responsibility for the accuracy thereof. 57023390.6 G-3 108
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MASTER INDENTURE between RIVERSIDE COUNTY TRANSPORTATION COMMISSION and ATTACHMENT 3 OH&S Draft 3/31/2013 THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee OHS USA:260935709 .9 Dated as of June I, 2013 Riverside County Transportation Commission Toll Revenue Bonds 110
Section 1.01 Section 2.01 Section 2.02 Section 2.03 Section 2.04 Section 2.05 Section 2.06 Section 2.07 Section 2.08 Section 2.09 Section 2.10 Section 2.11 TABLE OF CONTENTS ARTICLE I DEFINITIONS Page Definitions ........................................................................................................ 6 ARTICLE II THE OBLIGATIONS Authorization and Purposes ........................................................................... 30 General Terms of Obligations ........................................................................ 30 Execution ....................................................................................................... 31 Certificate of Authentication .......................................................................... 31 F onns of Obligations ..................................................................................... 31 Issuance, Sale and Delivery of Obligations; Application of Proceeds .......... 31 Mutilated, Lost, Stolen or Destroyed Obligations ......................................... 32 Exchangeability and Transfer of Obligations; Persons Treated as Holders ........................................................................................................... 32 Cancellation ................................................................................................... 33 Obligations Ratably Secured .......................................................................... 33 Book-Entry Only System ............................................................................... 33 ARTICLE III ADDITIONAL BONDS, PARITY OBLIGATIONS, AND SUBORDINATED OBLIGATIONS Section 3.01 Section 3.02 Section 3.03 Section 3.04 Section 3.05 Section 4.01 Section 4.02 Section 4.03 Section 4.04 Section 4.05 Section 5.01 Section 5.02 OI-ISUSA:260935709.9 Restrictions on Issuance of Additional Senior Lien Bonds and Parity Obligations .............................. 0 ...................................................................... 35 Proceedings for Issuance of Additional Senior Lien Bonds and Parity Obligations ..................... 00 •••••••••••• 0 ••• 0 ............................................................. 36 Restrictions on Issuance ofPermitted Second Lien Obligations or Additional Subordinate Obligations .............................................................. 37 Proceedings for Issuance of Permitted Second Lien Obligations or Additional Subordinate Obligations .............................................................. 39 Subordinate Obligations; TIFIA Loans ......................................................... 39 ARTICLE IV REDEMPTION Redemption and Purchase of Obligations ...................................................... 39 Notice of Redemption ... 0 ................................................................................ 39 Conditional Notice of Redemption; Rescission ............................................. 40 Effect of Redemption ..................................................................................... 40 Partial Redemption of Obligations ................................................................. 41 ARTICLE V PLEDGE; FUNDS AND ACCOUNTS Deposit ofRevenue by Trustee; Toll Revenue Fund ..................................... 41 Establishment of Funds and Accounts ........................................................... 41 -I-1 1 1
Section 5.03 Section 5.04 Section 5.05 Section 5.06 Section 5.07 Section 5.08 Section 5.09 Section 5.1 0 Section 5.11 Section 5.12 Section 5.13 Section 5.14 Section 5.15 Section 5.16 Section 5.17 Section 5.18 Section 5.19 Section 5.20 Section 5.21 Section 5.22 Section 5.23 Section 5.24 Section 6.01 Section 6.02 Section 6.03 Section 6.04 Section 6.05 Section 6.06 Section 6.07 Section 6.08 Section 6.09 Section 6.10 Section 6.11 Section 6.12 Section 6.13 Section 6.14 Section 6.15 Section 6.16 OHSUSA:260935709.9 TABLE OF CONTENTS (continued) Page Toll Revenue Fund; Priority of Deposits and Transfers ................................ 42 Project Fund ................................................................................................... 4 7 Commission Equity Contribution to Project.. ................................................ 49 Operation and Maintenance Fund .................................................................. 49 Capital Expenditures Fund ............................................................................. 49 Senior Lien Bond Reserve Fund .................................................................... 49 Subordinate Obligations Reserve Fund ......................................................... 51 Repair and Rehabilitation Fund ..................................................................... 52 Residual Fund; Surplus Fund ......................................................................... 52 Rebate Fund ................................................................................................... 52 Senior LienBond Interest Payment Account.. ............................................... 52 Senior Lien Bond Principal Payment Account .............................................. 53 Permitted Second Lien Obligations Interest Payment Account.. ................... 53 Permitted Second Lien Obligations Principal Payment Account .................. 53 Subordinate Obligations Payment Fund ........................................................ 53 Establishment and Application of the Redemption Fund .............................. 53 Permitted Second Lien Obligations Reserve Fund ........................................ 54 Records .......................................................................................................... 54 Investment by Trustee .................................................................................... 54 Subsidy Payments .................................................................................... : ..... 55 Withdrawal and Application of Funds; Priority of Transfers from Funds and Accounts ....................................................................................... 56 Insufficient Funds; Application of Funds; Priority ........................................ 56 ARTICLE VI COVENANTS OF THE COMMISSION Punctual Payment and Performance .............................................................. 57 Against Encumbrances ................................................................................... 57 Toll and Revenue Covenants ......................................................................... 57 Annual Budget ............................................................................................... 59 Operation and Maintenance ofthe Toll Road ................................................ 59 Retention of Assets ........................................................................................ 60 Insurance ........................................................................................................ 60 Payment of Claims ......................................................................................... 60 Receipt and Deposit of Cash Advances ......................................................... 60 Toll Agreements ............................................................................................. 61 Construction and Maintenance From Other Sources Permitted .................... 61 Tax Covenants ............................................................................................... 61 Accounting Records; Financial Statements and Other Reports ..................... 62 Protection ofT rust Estate and Rights of Holders .......................................... 62 Payment of Governmental Charges and Compliance with Governmental Regulations ............................................................................. 63 Maintenance of Powers .................................................................................. 63 -II-112
Section 6.17 Section 6.18 Section 6.19 Section 7.01 Section 7.02 Section 7.03 Section 7.04 Section 7.05 Section 7.06 Section 8.01 Section 8.02 Section 8.03 Section 8.04 Section 8.05 Section 9.01 Section 9.02 Section 9.03 Section 9.04 Section 9.05 Section 10.0 I Section 10.02 Section 1 0.03 Section 11.01 Section 11.02 Section 11.03 Section 11.04 Section 11.05 Section 11.06 OHSUSA:260935709.9 TABLE OF CONTENTS (continued) Page Covenants Binding on Commission and Successors ..................................... 63 Continuing Disclosure ................................................................................... 63 Further Assurances ......................................................................................... 64 ARTICLE VII DEFAULT PROVISIONS AND REMEDIES Events of Default ........................................................................................... 64 Application of Revenue and Other Funds After Default ............................... 65 No Acceleration ............................................................................................. 66 Suits at Law or in Equity and Mandamus ...................................................... 66 Waivers .......................................................................................................... 67 Rights of Subordinate Lenders ....................................................................... 67 ARTICLE VIII THE TRUSTEE Trustee ............................................................................................................ 67 Compensation and Indemnification ofTrustee .............................................. 69 Qualifications ofTrustee; Resignation; Removal. ......................................... 70 Instrument of Bondholders ............................................................................ 72 Issuing and Paying Agents ............................................................................. 72 ARTICLE IX AMENDMENTS Amendments to Indenture Not Requiring Consent of Bondholders .............. 73 Amendments to Indenture Requiring Consent of Bondholders and TIFIA Lender ................................................................................................. 74 Notice to and Consent of Bondholders .......................................................... 75 Execution and Effect of Supplemental Indentures ......................................... 75 Obligations Owned by Commission .............................................................. 76 ARTICLE X DISCHARGE OF LIEN Discharge of Lien and Security Interest.. ....................................................... 76 Provision for Payment of Obligations ............................................................ 77 Unclaimed Moneys ........................................................................................ 77 ARTICLE XI MISCELLANEOUS Liability of Commission Limited to Trust Estate .......................................... 78 Limitation of Rights; Third Party Beneficiary ............................................... 78 Rights of Credit Providers ............................................................................. 78 Severability .................................................................................................... 79 Notices ........................................................................................................... 80 Payments Due on Non-Business Days ........................................................... 80 -Ill-113
Section 11.07 Section 11.08 Section 11.09 Section 11.10 OHSUSA:260935709.9 TABLE OF CONTENTS (continued) Page Captions ......................................................................................................... 80 California Law ............................................................................................... 80 Effective Date ................................................................................................ 80 Execution in Several Counterparts ................................................................. 80 -IV-114
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T h i s M A S T E R I N D E N T U R E , d a t e d a s o f J u n e I , 2 0 1 3 ( t h i s " 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 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 ( a s f u r t h e r d e f i n e d h e r e i n , t h e " C o m m i s s i o n " ) ,
a n d T H E B A N K O F N E W Y O R K M E L L O N T R U S T C O M P A N Y , N . A . , 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 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 o g e t h e r w i t h a n y s u c c e s s o r t h e r e t o t h e " T r u s t e e " ) ;
W H E R E A S , t h e C o m m i s s i o n i s a c o u n t y t r a n s p o r t a t i o n c o m m i s s i o n d u l y
o r g a n i z e d a n d e x i s t i n g p u r s u a n t t o t h e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n s A c t , b e i n g D i v i s i o n
1 2 o f t h e P u b l i c U t i l i t i e s C o d e o f t h e S t a t e o f C a l i f o r n i a ( S e c t i o n 1 3 0 0 0 0 e t s e q . ) ( a s a m e n d e d ,
i n c l u d i n g b y C h a p t e r 7 1 4 o f t h e C a l i f o r n i a S t a t u t e s o f 2 0 0 8 ( S e n a t e B i l l N o . 1 3 1 6 ) , a n d a s i t m a y
b e a m e n d e d f r o m t i m e t o t i m e h e r e a f t e r , t h e " A c t " ) ;
W H E R E A S , t h e C o m m i s s i o n i s a u t h o r i z e d p u r s u a n t t o t h e R i v e r s i d e C o u n t y
T r a n s p o r t a t i o n S a l e s T a x A c t , b e i n g D i v i s i o n 2 5 o f t h e P u b l i c U t i l i t i e s C o d e o f t h e S t a t e o f
C a l i f o r n i a ( S e c t i o n 2 4 0 0 0 0 e t s e q . ) ( t h e " S a l e s T a x A c t " ) , t o , a m o n g o t h e r t h i n g s , a n d w i t h v o t e r
a p p r o v a l , l e v y a r e t a i l t r a n s a c t i o n s a n d u s e t a x i n a c c o r d a n c e w i t h t h e p r o v i s i o n s o f P a r t 1 . 6
( c o m m e n c i n g w i t h S e c t i o n 7 2 5 1 ) o f D i v i s i o n 2 o f t h e C a l i f o r n i a R e v e n u e a n d T a x a t i o n C o d e
a n d t o i s s u e l i m i t e d t a x b o n d s p a y a b l e f r o m t h e p r o c e e d s o f s u c h t a x ;
W H E R E A S , t h e C o m m i s s i o n a d o p t e d O r d i n a n c e N o . 0 2 - 0 0 1 , n a m e d t h e
" T r a n s p o r t a t i o n E x p e n d i t u r e P l a n a n d R e t a i l T r a n s a c t i o n a n d U s e T a x O r d i n a n c e " ( t h e
" O r d i n a n c e " ) o n M a y 8 , 2 0 0 2 , p u r s u a n t t o t h e p r o v i s i o n s o f t h e S a l e s T a x A c t , w h i c h O r d i n a n c e
p r o v i d e s f o r t h e i m p o s i t i o n o f a r e t a i l t r a n s a c t i o n s a n d u s e t a x ( t h e " S a l e s T a x " ) a p p l i c a b l e i n t h e
i n c o r p o r a t e d a n d u n i n c o r p o r a t e d t e r r i t o r y o f t h e C o u n t y i n a c c o r d a n c e w i t h t h e p r o v i s i o n s o f P a r t
1 . 6 ( c o m m e n c i n g w i t h S e c t i o n 7 2 5 1 ) o f D i v i s i o n 2 o f t h e C a l i f o r n i a R e v e n u e a n d T a x a t i o n C o d e
a t t h e r a t e o f o n e - h a l f o f o n e p e r c e n t ( 1 / 2 % ) c o m m e n c i n g J u l y 1 , 2 0 0 9 a n d c o n t i n u i n g f o r a
p e r i o d n o t t o e x c e e d t h i r t y ( 3 0 ) y e a r s ;
W H E R E A S , b y i t s t e r m s , t h e O r d i n a n c e b e c a m e e f f e c t i v e a t t h e c l o s e o f t h e p o l l s
o n N o v e m b e r 5 , 2 0 0 2 , t h e d a y o f t h e e l e c t i o n a t w h i c h t h e p r o p o s i t i o n i m p o s i n g t h e S a l e s T a x
w a s a p p r o v e d b y m o r e t h a n t w o - t h i r d s o f t h e e l e c t o r s v o t i n g o n t h e m e a s u r e ;
W H E R E A S , t h e O r d i n a n c e a u t h o r i z e s t h e C o m m i s s i o n t o a p p l y p r o c e e d s o f t h e
S a l e s T a x ( t h e " S a l e s T a x R e v e n u e s " ) f o r t r a n s p o r t a t i o n p u r p o s e s , i n c l u d i n g t h e c o n s t r u c t i o n ,
c a p i t a l , a c q u i s i t i o n , m a i n t e n a n c e a n d o p e r a t i o n o f s t r e e t s , r o a d s , h i g h w a y s , i n c l u d i n g s t a t e
h i g h w a y s , a n d f o r r e l a t e d p u r p o s e s ;
W H E R E A S , t h e A c t a u t h o r i z e s t h e C o m m i s s i o n t o s e t , l e v y a n d c o l l e c t t o l l s ,
u s e r f e e s , o r o t h e r s i m i l a r c h a r g e s , p a y a b l e f o r u s e o f t h e t o l l l a n e s a n d o t h e r f a c i l i t i e s o n t h e
p o r t i o n o f S t a t e H i g h w a y R o u t e 9 1 ( t h e " S R - 9 1 " ) b e t w e e n t h e O r a n g e C o u n t y a n d R i v e r s i d e
C o u n t y l i n e t o t h e w e s t a n d I n t e r s t a t e 1 5 ( a l s o k n o w n a s S t a t e H i g h w a y R o u t e 1 5 ) t o t h e e a s t ( a s
f u r t h e r d e f i n e d h e r e i n , t h e " T o l l R o a d " ) , a n d t o i s s u e o n e o r m o r e s e r i e s o f b o n d s o r o t h e r
o b l i g a t i o n s ( a s f u r t h e r d e f i n e d h e r e i n , t h e " O b l i g a t i o n s " ) p u r s u a n t t o t h e t e r m s a n d c o n d i t i o n s o f
a r e s o l u t i o n a d o p t e d b y a t w o - t h i r d s v o t e o f t h e C o m m i s s i o n , w h i c h O b l i g a t i o n s m a y b e p a y a b l e
O H S U S A : 2 6 0 9 3 5 7 0 9 . 9
1 1 5
from (i) the proceeds of such tolls (as further defined herein, the "Toll Revenues"), (ii)
development impact fees, (iii) federal grant funds, and (iv) any other source of revenues
available to the Commission;
WHEREAS, the Act authorizes the Obligations to be issued for the purpose of
financing the planning, design, development, financing, construction, reconstruction,
rehabilitation, improvement, acquisition, lease, operation, or maintenance, or any combination of
these, with respect to tolled and nontolled facilities, structures, onramps, connector roads,
bridges, and roadways that are on, necessary for, or related to the construction or operation of the
portion of the SR-91 between the Orange and Riverside County line to the west and Interstate 15
to the east (the "Riverside SR-91 Corridor Improvement Project");
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WHEREAS, pursuant to that certain Estoppel Certificate and Assignment and
Assumption Agreement, dated as of December 30, 2002 (the "Assignment Agreement"), by and
among California Private Transportation Company, L.P., the Orange County Transportation
Authority ("OCTA"), and the California Department of Transportation ("Caltrans"), OCT A and
Caltrans are parties to that certain Amended and Restated Development Franchise Agreement
(State Route 91 Median Improvements), dated as of June 30, 1993 (as it has been amended, the
"OCTA Franchise Agreement"), as amended by that certain Amendment No. 1 to Amended and
Restated Development Franchise Agreement (State Route 91 Median Improvements) dated as of
July 16, 1993, and that certain Amendment No. 2 to Amended and Restated Development
Franchise Agreement (State Route 91 Median Improvements) dated as of December 30, 2002,
pertaining to the construction and operation of to11ed transportation facilities within the SR-91 •
corridor in both Orange County and Riverside County;
WHEREAS, OCTA imposes tolls on certain SR-91 lanes in Orange County
pursuant to the OCTA Franchise Agreement;
WHEREAS, pursuant to an Amendment No. 3 to Amended and Restated
Development Franchise Agreement (State Route 91 Median Improvements), dated as of
December 12, 2011, by and between OCT A and Caltrans, OCT A has amended the OCT A
Franchise Agreement to exclude that portion ofSR-91 between the Orange and Riverside County
line and Interstate 15 from such OCT A Franchise Agreement;
WHEREAS, the Commission submitted a Project Authorization Request to the
California Transportation Commission (the "CTC") on January 1, 2010, describing
transportation improvements relating to the Riverside SR-91 Corridor Improvement Project,
including projected costs, the use of toll revenues, and a proposed completion schedule, and
requesting authorization to employ the design-build method of procurement in connection with
such improvements to reduce costs, expedite completion and achieve design features not
achievable through the traditional design-bid-build method (the ''CIP Plan");
WHEREAS, on April 7, 201 0, the CTC authorized the Commission, pursuant to
Chapter 6.5 (commencing with Section 6800) of Part 1 of Division 2 of the Public Contract
Code, to employ the design-build method of procurement in connection with the CIP Plan and
the proposed construction of the initial phase of the Riverside SR-91 Corridor Improvement •
Project;
OHSUSA:260935709.9 2
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W H E R E A S , t h e t i m e l i n e f o r p r o j e c t d e l i v e r y s e t f o r t h i n t h e C T C a p p l i c a t i o n i s
b a s e d o n u s e o f t h e d e s i g n - b u i l d m e t h o d o f . . p r o c u r e m e n t , a n d t h e d e s i g n - b u i l d p r o c u r e m e n t
m e t h o d i s a k e y c o m p o n e n t o f m a k i n g t h e C I P P l a n a n d c o n s t r u c t i o n o f t h e i n i t i a l p h a s e o f t h e
R i v e r s i d 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 v i a b l e b y p r o v i d i n g f o r s c h e d u l e a c c e l e r a t i o n ,
i n n o v a t i o n , r i s k t r a n s f e r , c o s t c e r t a i n t y a n d o t h e r b e n e f i t s ;
W H E R E A S , C a l t r a n s a n d t h e C o m m i s s i o n h a v e n e g o t i a t e d t h e t e r m s o f t h e
C o o p e r a t i v e A g r e e m e n t f o r D e s i g n - B u i l d o f t h e S t a t e R o u t e 9 1 T o l l F a c i l i t i e s a n d 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 , b y a n d b e t w e e n t h e C o m m i s s i o n a n d C a l t r a n s ( t h e " C a l t r a n s D B
C o o p e r a t i v e A g r e e m e n t " ) ;
W H E R E A S , R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n a n d O r a n g e C o u n t y
T r a n s p o r t a t i o n A u t h o r i t y h a v e o n D e c e m b e r I 6 , 2 0 I I e x e c u t e d t h e C o o p e r a t i v e A g r e e m e n t f o r
S t a t e R o u t e 9 I E x p r e s s L a n e s a n d C o r r i d o r I m p r o v e m e n t s , b y a n d b e t w e e n t h e C o m m i s s i o n a n d
O C T A ( t h e " O C T A C o o p e r a t i v e A g r e e m e n t " ) , s e t t i n g f o r t h , a m o n g o t h e r t h i n g s , s p e c i f i c
p r o c e d u r e s a n d r e q u i r e m e n t s f o r t h e C o m m i s s i o n ' s p r o p o s e d c o n s t r u c t i o n o f t h e i n i t i a l p h a s e o f
t h e R i v e r s i d e S R - 9 I 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 a s p a r t o f t h e C I P P l a n , i n c l u d i n g a
r e q u i r e m e n t t h a t t h e C o m m i s s i o n c o n s t r u c t t h e R i v e r s i d 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
u s i n g t h e d e s i g n - b u i l d m e t h o d o f p r o c u r e m e n t , a n d a n 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
O C T A t o e n g a g e a c o m m o n t o l l o p e r a t o r ;
W H E R E A S , t h e C o m m i s s i o n i n c o o r d i n a t i o n w i t h O C T A p u r s u a n t t o t h e O C T A
C o o p e r a t i v e A g r e e m e n t w i l l s e t , l e v y , a n d c o l l e c t t o l l s , u s e r f e e s a n d s i m i l a r c h a r g e s f o r t h e u s e
o f t h e T o l l R o a d p u r s u a n t t o t h e t o l l s c h e d u l e a d o p t e d b y t h e C o m m i s s i o n , a n d a p p l y t h e T o l l
R e v e n u e s t o t h e f i n a n c i n g o r p a y m e n t o f t h e R i v e r s i d e S R - 9 I 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 ' s
d e s i g n , c o n s t r u c t i o n a n d o p e r a t i o n , i n c l u d i n g r e i m b u r s e m e n t f o r t h e c o s t s o f e n v i r o n m e n t a l
a n a l y s i s a n d c o m p l i a n c e i n a c c o r d a n c e w i t h t h e C I P P l a n ;
W H E R E A S , t h e C o m m i s s i o n d e t e r m i n e d t h a t i t i s n e c e s s a r y t o i s s u e O b l i g a t i o n s ,
i n c l u d i n g S e n i o r L i e n B o n d s ( a s d e f i n e d h e r e i n ) , t o ( i ) p a y o r r e i m b u r s e t h e C o m m i s s i o n f o r t h e
p a y m e n t o f a p o r t i o n o f t h e P r o j e c t C o s t s ( a s h e r e i n a f t e r d e f i n e d ) , ( i i ) f i n a n c e t h e p l a n n i n g ,
d e s i g n , d e v e l o p m e n t , f i n a n c i n g , c o n s t r u c t i o n , r e c o n s t r u c t i o n , r e h a b i l i t a t i o n , i m p r o v e m e n t ,
a c q u i s i t i o n , l e a s e , o p e r a t i o n , a n d m a i n t e n a n c e o f t h e R i v e r s i d e S R - 9 I 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 , ( i i i ) a p p l y f o r o r o t h e r w i s e o b t a i n a v a i l a b l e f e d e r a l , s t a t e a n d l o c a l m a t c h i n g f u n d s , l o a n s
a n d g r a n t s t o m a k e a d d i t i o n a l f u n d s a v a i l a b l e f o r t h e R i v e r s i d e S R - 9 I 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 ; a n d ( i v ) f i n a n c e t h e c o s t s o f i s s u a n c e i n c u r r e 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 s u c h
b o n d s ;
W H E R E A S , t h e C o m m i s s i o n h a s d e t e r m i n e d t o e n t e r i n t o t h i s M a s t e r I n d e n t u r e
a n d o n e o r m o r e S u p p l e m e n t a l I n d e n t u r e s t o p r o v i d e f o r t h e a u t h e n t i c a t i o n a n d d e l i v e r y o f s u c h
S e n i o r L i e n B o n d s , e n t i t l 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 T o l l R e v e n u e
B o n d s , " t o e s t a b l i s h a n d d e c l a r e t h e t e r m s a n d c o n d i t i o n s u p o n w h i c h t h e S e n i o r L i e n B o n d s a n d
o t h e r o b l i g a t i o n s s e c u r e d b y t o l l r e v e n u e s a n d o t h e r s o u r c e s o f f u n d s s h a l l b e i s s u e d a n d s e c u r e d
a n d t o s e c u r e t h e p a y m e n t o f t h e p r i n c i p a l , p r e m i u m ( i f a n y ) , a n d i n t e r e s t o n t h e S e n i o r L i e n
B o n d s a n d o t h e r o b l i g a t i o n s s e c u r e d b y t o l l r e v e n u e s o n a p a r i t y w i t h t h e S e n i o r L i e n B o n d s ( a s
m o r e f u l l y d e f i n e d i n S e c t i o n I . O I , t h e " ' P a r i t y O b l i g a t i o n s " ) ;
O H S U S A : 2 6 0 9 3 5 7 0 9 . 9 3
1 1 7
WHEREAS, the execution and delivery of this Master Indenture has in all
respects been duly and validly authorized by resolution duly passed and approved by the •
Commission; and
WHEREAS, the Commission certifies that all acts that are necessary to make the
Obligations, when executed by the Commission and authenticated and delivered by the Trustee,
duly issued and the valid, legal and binding obligations of the Commission payable in
accordance with their terms, and to constitute this Indenture a valid and binding agreement of the
parties hereto, have been done and taken, and the execution and delivery of this Master Indenture
have been duly authorized;
NOW, THEREFORE, THIS MASTER INDENTURE WITNESSETH:
The Commission, to secure the payment of the Obligations as the same become
due and payable, whether at maturity or by prior redemption, and the performance and
observance of all of the covenants and conditions herein contained, and in consideration of the
premises and the acceptance by the Trustee of the trusts hereby created and of the purchase and
acceptance of the Obligations by the Holders thereof and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Commission does hereby
grant, mortgage, grant a security interest in, assign, transfer in trust, and pledge to the Trustee,
and to its successors in trust hereunder, and to them and their assigns forever, all rights, title,
interest and privileges of the Commission in, to and under (i) the Toll Revenues, (ii) all interest
or other income from investment of money in the Funds and Accounts established hereunder
(excluding the Rebate Fund and any Fund or Account established to hold the ·proceeds of a
drawing on any Credit Support Instrument), (iii) all Swap Revenues, and (iv) all amounts
(including the proceeds of Obligations) held by the Trustee in each Fund and Account
established under this Indenture (except for amounts on deposit in the Rebate Fund and amounts
on deposit in any Fund or Account established to hold the proceeds of a drawing on any Credit
Support Instrument);
TO HAVE AND TO HOLD all the same (herein called the "Trust Estate") with
all privileges and appurtenances hereby granted and assigned, or agreed or intended so to be, to
the Trustee and its successors in trust and to them and their assigns forever;
IN TRUST NEVERTHELESS, upon the terms and trusts herein set forth,
•
FIRST: for the equal and proportionate benefit and security of all Senior Lien
Bonds and Parity Obligations, all of which, regardless of the time or times of their delivery,
maturity or other due date, shall be of equal rank without preference, priority or distinction as to
lien or otherwise of any Senior Lien Obligation over any other Senior Lien Obligation, except as
otherwise permitted by or provided for in this Indenture or in a Supplemental Indenture;
provided, that any funds held by the Trustee for the payment of specific Senior Lien Bonds and
Parity Obligations which are deemed to have been paid pursuant to the provisions of Article XI
and any funds deposited with the Trustee hereunder specifically to be held in escrow or
otherwise to provide additional security or an additional source of payment for specified Senior
Lien Bonds and Parity Obligations shall be held and used only to pay or provide security for the
Senior Lien Bonds and Parity Obligations for which such deposit was made and shall not be held •
OHSUSA:260935709.9 4
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a s s e c u r i t y o n a p a r i t y f o r a n y o t h e r S e n i o r L i e n B o n d s a n d P a r i t y O b l i g a t i o n s ; a n d p r o v i d e d
f u r t h e r , t h a t t h e T r u s t e e s h a l l a p p l y t h e T r u s t E s t a t e h e r e u n d e r t o t h e p a y m e n t o f t h e p r i n c i p a l o f ,
a n d i n t e r e s t o n , o r M a t u r i t y V a l u e o f , a n d o t h e r p a y m e n t s w i t h r e s p e c t t o t h e S e n i o r L i e n B o n d s
a n d P a r i t y O b l i g a t i o n s a n d f o r t h e p u r p o s e s a n d u s e s a n d i n t h e o r d e r o f p r i o r i t y s e t f o r t h h e r e i n
p r i o r t o t h e p a y m e n t o f t h e p r i n c i p a l o f , a n d i n t e r e s t o n , o r M a t u r i t y V a l u e o f , a n d o t h e r
p a y m e n t s w i t h r e s p e c t t o P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s , S u b o r d i n a t e O b l i g a t i o n s o r o t h e r
O b l i g a t i o n s ; a n d
S E C O N D : s u b j e c t t o t h e s e c u r i t y i n t e r e s t i n t h e T r u s t E s t a t e p l e d g e d f o r t h e
s e c u r i t y a n d p a y m e n t o f t h e S e n i o r L i e n B o n d s a n d P a r i t y O b l i g a t i o n s , f o r t h e e q u a l a n d
p r o p o r t i o n a t e b e n e f i t a n d s e c u r i t y o f a l l P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s , a l l o f w h i c h ,
r e g a r d l e s s o f t h e t i m e o r t i m e s o f t h e i r d e l i v e r y , m a t u r i t y o r o t h e r d u e d a t e , s h a l l b e o f e q u a l r a n k
w i t h o u t p r e f e r e n c e , p r i o r i t y o r d i s t i n c t i o n a s t o l i e n o r o t h e r w i s e o f a n y J u n i o r L i e n O b l i g a t i o n
o v e r a n y o t h e r J u n i o r L i e n O b l i g a t i o n , e x c e p t a s o t h e r w i s e p e r m i t t e d b y o r p r o v i d e d f o r i n t h i s
I n d e n t u r e o r i n a S u p p l e m e n t a l I n d e n t u r e ; p r o v i d e d , t h a t a n y f u n d s h e l d b y t h e T r u s t e e f o r t h e
p a y m e n t o f s p e c i f i c P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s t h a t a r e d e e m e d t o h a v e b e e n p a i d
p u r s u a n t h e r e t o a n d a n y f u n d s d e p o s i t e d w i t h t h e T r u s t e e h e r e u n d e r s p e c i f i c a l l y t o b e h e l d i n
e s c r o w o r o t h e r w i s e 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 o r a n a d d i t i o n a l s o u r c e o f p a y m e n t f o r
s p e c i f i e d P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s s h a l l b e h e l d a n d u s e d o n l y t o p a y o r p r o v i d e
s e c u r i t y f o r t h e P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s f o r w h i c h s u c h d e p o s i t w a s m a d e a n d s h a l l
n o t b e h e l d a s s e c u r i t y o n a p a r i t y f o r a n y o t h e r P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s ; a n d p r o v i d e d
f u r t h e r , t h a t t h e T r u s t e e s h a l l a p p l y t h e T r u s t E s t a t e h e r e u n d e r t o t h e p a y m e n t o f t h e p r i n c i p a l o f ,
a n d i n t e r e s t o n , o r M a t u r i t y V a l u e o f , a n d o t h e r p a y m e n t s w i t h r e s p e c t t o t h e P e r m i t t e d S e c o n d
L i e n O b l i g a t i o n s a n d f o r t h e p u r p o s e s a n d u s e s a n d i n t h e o r d e r o f p r i o r i t y s e t f o r t h h e r e i n
s u b o r d i n a t e t o t h e p a y m e n t o f t h e S e n i o r L i e n 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 b u t p r i o r t o t h e
p a y m e n t o f t h e p r i n c i p a l o f , a n d i n t e r e s t o n , o r M a t u r i t y V a l u e o f , a n d o t h e r p a y m e n t s w i t h
r e s p e c t t o S u b o r d i n a t e O b l i g a t i o n s a n d o t h e r O b l i g a t i o n s ; a n d
T H I R D : s u b j e c t t o t h e s e c u r i t y i n t e r e s t i n t h e T r u s t E s t a t e p l e d g e d f o r t h e
s e c u r i t y a n d p a y m e n t o f t h e S e n i o r L i e n B o n d s a n d P a r i t y O b l i g a t i o n s a n d t h e P e r m i t t e d S e c o n d
L i e n O b l i g a t i o n s , f o r t h e e q u a l a n d p r o p o r t i o n a t e b e n e f i t a n d s e c u r i t y o f a l l S u b o r d i n a t e
O b l i g a t i o n s , a l l o f w h i c h , r e g a r d l e s s o f t h e t i m e o r t i m e s o f t h e i r d e l i v e r y , m a t u r i t y o r o t h e r d u e
d a t e , s h a l l b e o f e q u a l r a n k w i t h o u t p r e f e r e n c e , p r i o r i t y o r d i s t i n c t i o n a s t o l i e n o r o t h e r w i s e o f
a n y S u b o r d i n a t e L i e n O b l i g a t i o n o v e r a n y o t h e r S u b o r d i n a t e L i e n O b l i g a t i o n , e x c e p t a s
o t h e r w i s e p e r m i t t e d b y o r p r o v i d e d f o r i n t h i s I n d e n t u r e o r i n a S u p p l e m e n t a l I n d e n t u r e ;
p r o v i d e d , t h a t a n y f u n d s h e l d b y t h e T r u s t e e f o r t h e p a y m e n t o f s p e c i f i c S u b o r d i n a t e O b l i g a t i o n s
w h i c h a r e d e e m e d t o h a v e b e e n p a i d p u r s u a n t t o t h e p r o v i s i o n s h e r e o f a n d a n y f u n d s d e p o s i t e d
w i t h t h e T r u s t e e h e r e u n d e r s p e c i f i c a l l y t o b e h e l d i n e s c r o w o r o t h e r w i s e 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 o r a n a d d i t i o n a l s o u r c e o f p a y m e n t f o r s p e c i f i e d S u b o r d i n a t e O b l i g a t i o n s s h a l l b e h e l d
a n d u s e d o n l y t o p a y o r p r o v i d e s e c u r i t y f o r t h e S u b o r d i n a t e O b l i g a t i o n s f o r w h i c h s u c h d e p o s i t
w a s m a d e a n d s h a l l n o t b e h e l d a s s e c u r i t y o n a p a r i t y f o r a n y o t h e r S u b o r d i n a t e O b l i g a t i o n s ; a n d
p r o v i d e d f u r t h e r , t h a t t h e T r u s t e e s h a l l a p p l y t h e T r u s t E s t a t e h e r e u n d e r t o t h e p a y m e n t o f t h e
p r i n c i p a l o f , a n d i n t e r e s t o n , o r M a t u r i t y V a l u e o f , a n d o t h e r p a y m e n t s w i t h r e s p e c t t o t h e
S u b o r d i n a t e O b l i g a t i o n s a n d f o r t h e p u r p o s e s a n d u s e s a n d i n t h e o r d e r o f p r i o r i t y s e t f o r t h h e r e i n
s u b o r d i n a t e t o t h e p a y m e n t o f t h e S e n i o r L i e n B o n d s a n d P a r i t y O b l i g a t i o n s a n d t h e P e r m i t t e d
S e c o n d L i e n O b l i g a t i o n s b u t p r i o r t o t h e p a y m e n t o f t h e p r i n c i p a l o f a n d i n t e r e s t o n , o r M a t u r i t y
V a l u e o f , a n d o t h e r p a y m e n t s w i t h r e s p e c t t o o t h e r O b l i g a t i o n s ;
O H S U S A : 2 6 0 9 3 5 7 0 9 . 9 5
1 1 9
PROVIDED, HOWEVER, that if the Commission, its successors or assigns,
shall well and truly pay, or cause to be paid, or provide fully for payment as herein provided of •
the principal of the Obligations and the interest due or to become due thereon (together with
premium, if any), at the time and in the manner set forth in the Obligations according to the true
intent and meaning thereof, or shall provide, as permitted hereby, for the payment thereof by
depositing with the Trustee sums sufficient for payment of the entire amount due or to become
due thereon as herein provided, and shall well and truly keep, perform and observe all the
covenants and conditions pursuant to the terms of this Indenture to be kept, performed and
observed by it, and shall pay to the Trustee all sums of money due or to become due to it in
accordance with the terms and provisions hereof (as hereinafter defined), then this Indenture and
the rights hereby granted shall cease, terminate and be void except as otherwise provided herein.
THIS INDENTURE FURTHER WITNESSETH, and it is expressly declared,
that all Obligations issued and secured hereunder are to be issued, authenticated and delivered
and all payments, revenues, income and funds hereby pledged and assigned, and are subject to
the terms, conditions, stipulations, covenants, agreements, trusts, uses and purposes as
hereinafter expressed, and the Commission has agreed and covenanted, and does hereby
covenant and agree with the Trustee, for the benefit of the owners from time to time of the
Obligations issued hereunder and the Secured Creditors, as follows:
ARTICLE I
DEFINITIONS
Section 1.01 Definitions. In addition to terms elsewhere defined in this
Indenture, the following terms shall have the following meanings unless the context or use
clearly indicates another meaning. These definitions shall apply to the singular and plural forms
of these defined terms.
"Account" means each account established in accordance with the terms of this
Indenture.
"Accreted Value" means, with respect to any Capital Appreciation Obligations or
Convertible Capital Appreciation Obligations, the principal amount thereof plus the interest
accrued thereon, compounded at the approximate interest rate thereon on each date specified
therein. The Accreted Value at any date shall be the amounts set forth in the Accreted Value
Table as of such date, if such date is a compounding date, and if not, as of the immediately
preceding compounding date.
"Act" means Division 12 of the Public Utilities Code of the State of California
(Section 130000 et seq.) as amended, including by Chapter 714 ofthe California Statutes of2008
(Senate Bill No. 1316), and as such may be amended from time to time hereafter.
"Annual Debt Service" means the amount of payments due on the applicable
Outstanding Obligations for any Calculation Period, as calculated by the Commission, utilizing
. the following assumptions about payments on such Obligations (and if more than one such
•
assumption may apply, using the relevant assumptions selected by the Commission): •
OHSUSA:260935709.9 6
120
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( i ) i n d e t e r m i n i n g t h e p r i n c i p a l a m o u n t o f a n O b l i g a t i o n d u e i n e a c h y e a r ,
p a y m e n t s h a l l b e a s s u m e d t o b e m a d e i n a c c o r d a n c e w i t h t h e a m o r t i z a t i o n s c h e d u l e e s t a b l i s h e d
f o r s u c h p r i n c i p a l , i n c l u d i n g a n y m i n i m u m s i n k i n g f u n d o r a c c o u n t p a y m e n t s ;
( i i ) i f 2 0 p e r c e n t o r m o r e o f t h e p r i n c i p a l o f a S e r i e s o f O b l i g a t i o n s i s n o t d u e
u n t i l t h e f i n a l s t a t e d m a t u r i t y o f t h a t S e r i e s o f O b l i g a t i o n s , t h e p r i n c i p a l o f a n d i n t e r e s t o n s u c h
O b l i g a t i o n s m a y b e t r e a t e d a s i f s u c h p r i n c i p a l a n d i n t e r e s t w e r e d u e b a s e d u p o n a l e v e l
a m o r t i z a t i o n o f s u c h p r i n c i p a l a n d i n t e r e s t o v e r t h e t e r m o f t h a t S e r i e s o f O b l i g a t i o n s ;
( i i i ) i f t h e O b l i g a t i o n i s s u p p o r t e d b y a l i n e o f c r e d i t o r a l e t t e r o f c r e d i t ,
p r i n c i p a l m a y b e t r e a t e d a s i f i t w e r e d u e b a s e d u p o n t h e l e v e l a m o r t i z a t i o n o f s u c h p r i n c i p a l
o v e r t h e m a x i m u m t e r m o f r e p a y m e n t o f b o r r o w i n g s u n d e r s u c h l i n e o f c r e d i t o r l e t t e r o f c r e d i t ;
( i v ) i f a n O u t s t a n d i n g O b l i g a t i o n b e a r s a v a r i a b l e i n t e r e s t r a t e , t h e i n t e r e s t r a t e
s h a l l b e a s s u m e d t o b e t h e g r e a t e r o f ( a ) t h e d a i l y a v e r a g e i n t e r e s t r a t e d u r i n g t h e 1 2 m o n t h s
e n d i n g w i t h t h e m o n t h p r e c e d i n g t h e d a t e o f c a l c u l a t i o n , o r d u r i n g s u c h s h o r t e r p e r i o d t h a t t h e
O b l i g a t i o n h a s b e e n O u t s t a n d i n g , o r ( b ) t h e r a t e o f i n t e r e s t o n t h a t O b l i g a t i o n o n t h e d a t e o f
c a l c u l a t i o n ;
( v ) i f O b l i g a t i o n s p r o p o s e d t o b e i s s u e d w i l l b e v a r i a b l e i n t e r e s t r a t e
o b l i g a t i o n s , t h e i n t e r e s t 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 ,
t h e n s u c h o b l i g a t i o n s s h a l l b e a s s u m e d t o b e a r i n t e r e s t a t a n i n t e r e s t r a t e e q u a l t o t h e a v e r a g e
S I F M A I n d e x d u r i n g t h e t h r e e m o n t h s p r e c e d i n g t h e m o n t h o f c a l c u l a t i o n , o r i f S I F M A I n d e x i s
n o l o n g e r p u b l i s h e d , a t a n i n t e r e s t r a t e e q u a l t o 7 5 % o f t h e a v e r a g e O n e M o n t h U S D L I B O R
R a t e d u r i n g t h a t t h r e e m o n t h p e r i o d , o r i f t h e O n e M o n t h U S D L I B O R R a t e i s n o t a v a i l a b l e f o r
s u c h p e r i o d , a n o t h e r s i m i l a r r a t e o r i n d e x s e l e c t e d b y t h e C o m m i s s i o n ;
( v i ) i f O b l i g a t i o n s p r o p o s e d t o b e i s s u e d w i l l b e v a r i a b l e i n t e r e s t r a t e
o b l i g a t i o n s t h e i n t e r e s t o n w h i c h i s i n c l u d e d i n g r o s s i n c o m e f o r f e d e r a l i n c o m e t a x p u r p o s e s ,
t h e n s u c h o b l i g a t i o n s s h a l l b e a s s u m e d t o b e a r i n t e r e s t a t a n i n t e r e s t r a t e e q u a l t o t h e a v e r a g e
O n e M o n t h U S D L I B O R R a t e d u r i n g t h e t h r e e m o n t h s p r e c e d i n g t h e m o n t h o f c a l c u l a t i o n , o r i f
t h e O n e M o n t h U S D L I B O R R a t e i s n o t a v a i l a b l e f o r s u c h p e r i o d , a n o t h e r s i m i l a r r a t e o r i n d e x
s e l e c t e d b y t h e C o m m i s s i o n ;
( v i i ) i f O b l i g a t i o n s p r o p o s e d t o b e i s s u e d a r e p a r t o f a C o m m e r c i a l P a p e r
P r o g r a m , t h e p r i n c i p a l o f s u c h O b l i g a t i o n s m a y b e t r e a t e d a s i f s u c h p r i n c i p a l w e r e d u e b a s e d
u p o n a 3 0 - y e a r l e v e l a m o r t i z a t i o n o f p r i n c i p a l f r o m t h e d a t e o f c a l c u l a t i o n a n d t h e i n t e r e s t o n
s u c h O b l i g a t i o n s s h a l l b e c a l c u l a t e d a s i f s u c h O b l i g a t i o n s w e r e v a r i a b l e i n t e r e s t r a t e
O b l i g a t i o n s ;
( v i i i ) i f t h e v a r i a b l e i n t e r e s t o n a n y O b l i g a t i o n p l u s t h e v a r i a b l e p a y m e n t s d u e t o
t h e C o m m i s s i o n a n d f i x e d p a y m e n t s d u e f r o m t h e C o m m i s s i o n u n d e r a Q u a l i f i e d S w a p
A g r e e m e n t o r a S w a p 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 a r e t r e a t e d b y t h e C o m m i s s i o n a s s y n t h e t i c
f i x e d r a t e d e b t , t h e v a r i a b l e i n t e r e s t r a t e O b l i g a t i o n m a y b e t r e a t e d a s b e a r i n g s u c h s y n t h e t i c
f i x e d r a t e f o r t h e d u r a t i o n o f t h e s y n t h e t i c f i x e d r a t e ;
( i x ) i f t h e f i x e d i n t e r e s t o n a n y O b l i g a t i o n p l u s t h e f i x e d p a y m e n t s d u e t o t h e
C o m m i s s i o n a n d v a r i a b l e p a y m e n t s d u e f r o m t h e C o m m i s s i o n u n d e r a Q u a l i f i e d S w a p
O H S U S A : 2 6 0 9 3 5 7 0 9 . 9 7
1 2 1
Agreement or a Swap designated by the Commission are treated by the Commission as synthetic
variable rate debt, the fixed interest rate Obligation may be treated as bearing such synthetic •
variable rate for the duration of the synthetic variable rate and such synthetic variable rate shall
be calculated using the principles of clauses (iv), (v) or (vi) hereof;
(x) if any of the Obligations are Short-Term Put Obligations, the principal of
such obligations may be treated as if such principal were due based upon a 30-year level
amortization of principal from the date of calculation and the interest on such obligations may be
calculated as if such obligations were variable interest rate Obligations;
(xi) principal and interest payments on Obligations may be excluded to the
extent such payments are to be paid from amounts then currently on deposit with the Trustee or
another fiduciary in escrow specifically therefor and interest payments on any Obligations may
be excluded to the extent that such interest payments are to be paid from capitalized interest held
by the Trustee or another fiduciary specifically to pay such interest, including amounts held on
deposit to pay capitalized interest on one or more Series of Obligations;
(xii) if any of the Obligations are, or upon issuance will be, obligations for
which the Commission is entitled to receive Subsidy Payments, as evidenced by an Opinion of
Bond Counsel delivered with respect to such Obligations, the obligations may be treated as
bearing an interest rate equal to the rate of interest borne or assumed to be borne, as applicable,
by the obligations for the period of determination minus the Subsidy Payments to which the
Commission is entitled for such period;
(xiii) any payment obligation under an Obligation that was or is optional or •
contingent (such as the obligation to make a termination payment under a Qualified Swap
Agreement or a Swap), whether or not the option is exercised or the contingency occurs, and any
payments that are not scheduled payments, may be excluded;
(xiv) if any of the Obligations are, or upon issuance will be, obligations payable
in a currency other than lawful currency of the United States of America, then such obligations
shall be assumed to be payable in lawful currency of the United States at the rate payable by the
Commission pursuant to the Commission's related currency swap or contract entered into in
connection with such obligations or, in the absence of such swap or contract, at the rate
determined by the Commission using a currency market conversion factor selected by the
Commission; and
(xv) if any of the Obligations are Subordinate Obligations in the form of or
securing payment of a TIFIA Loan, Annual Debt Service on such TIFIA Loan shall include only
annual TIFIA Mandatory Debt Service; provided that, for purposes of such calculation during the
period prior to the Debt Service Payment Commencement Date (as defined in the TIFIA Loan
Agreement), the TIFIA Mandatory Debt Service shall be deemed to be zero, and such TIFIA
Loan shall be treated for purposes of all calculations of Annual Debt Service as Subordinate
Obligations unless and until the occurrence of a Bankruptcy-Related Event, after which
occurrence such TIFIA Loan shall be treated as Parity Obligations for such purposes.
OHSUSA:260935709.9 8
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" 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 e a n 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 ,
a n y 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 , t h e C h i e f F i n a n c i a l O f f i c e r o f t h e
C o m m i s s i o n , t h e T o l l P r o g r a m 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 a n y o t h e 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 t t h e t i m e d e s i g n a t e d 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 i n a C e r t i f i c a t e o f t h e
C o m m i s s i o n e x e c u t e d b y a n y o f t h e f o r e g o i n g o f f i c e r s a n d f i l e d w i t h t h e T r u s t e e , w h i c h
C e r t i f i c a t e s h a l l c o n t a i n s u c h e m p l o y e e ' s s p e c i m e n s i g n a t u r e .
" A v e r a g e A n n u a l D e b t S e r v i c e " m e a n s , a t a n y t i m e o f d e t e r m i n a t i o n , t h e
a v e r a g e a m o u n t o f A n n u a l D e b t S e r v i c e p a i d o r p a y a b l e i n e a c h C a l c u l a t i o n P e r i o d o n t h e
a p p l i c a b l e O u t s t a n d i n g O b l i g a t i o n s t o t h e s t a t e d m a t u r i t y t h e r e o f .
" B a n k r u p t c y R e l a t e d E v e n t " m e a n s ( a ) a n i n v o l u n t a r y p r o c e e d i n g s h a l l b e
c o m m e n c e d o r a n i n v o l u n t a r y p e t i t i o n s h a l l b e f i l e d s e e k i n g ( i ) l i q u i d a t i o n , r e o r g a n i z a t i o n o r
o t h e r r e l i e f i n r e s p e c t o f t h e C o m m i s s i o n o r a n y o f i t s d e b t s , o r o f a s u b s t a n t i a l p a r t o f t h e a s s e t s
o f t h e C o m m i s s i o n , u n d e r a n y I n s o l v e n c y L a w , o r ( i i ) t h e a p p o i n t m e n t o f a r e c e i v e r , t r u s t e e ,
l i q u i d a t o r , c u s t o d i a n , s e q u e s t r a t o r , c o n s e r v a t o r o r s i m i l a r o f f i c i a l f o r t h e C o m m i s s i o n f o r a
s u b s t a n t i a l p a r t o f t h e a s s e t s o f t h e C o m m i s s i o n , a n d , i n a n y c a s e r e f e r r e d t o i n t h e f o r e g o i n g
s u b c l a u s e s ( i ) a n d ( i i ) , s u c h p r o c e e d i n g o r p e t i t i o n s h a l l c o n t i n u e u n d i s m i s s e d f o r 6 0 d a y s o r a n
o r d e r o r d e c r e e a p p r o v i n g o r o r d e r i n g a n y o f t h e f o r e g o i n g s h a l l b e e n t e r e d ; ( b ) t h e C o m m i s s i o n
s h a l l ( i ) a p p l y f o r o r c o n s e n t t o t h e a p p o i n t m e n t o f a r e c e i v e r , t r u s t e e , l i q u i d a t o r , c u s t o d i a n ,
s e q u e s t r a t o r , c o n s e r v a t o r o r s i m i l a r o f f i c i a l f o r t h e C o m m i s s i o n o r f o r a s u b s t a n t i a l p a r t o f t h e
a s s e t s o f t h e C o m m i s s i o n , o r ( i i ) g e n e r a l l y n o t b e p a y i n g i t s d e b t s a s t h e y b e c o m e d u e u n l e s s
s u c h d e b t s a r e t h e s u b j e c t o f a b o n a f i d e d i s p u t e , o r b e c o m e u n a b l e t o p a y i t s d e b t s g e n e r a l l y a s
t h e y b e c o m e d u e , o r ( i i i ) m a k e a g e n e r a l a s s i g n m e n t f o r t h e b e n e f i t o f c r e d i t o r s , o r ( i v ) c o n s e n t
t o t h e i n s t i t u t i o n o f , o r f a i l t o c o n t e s t i n a t i m e l y a n d a p p r o p r i a t e m a n n e r , a n y p r o c e e d i n g o r
p e t i t i o n w i t h r e s p e c t t o i t d e s c r i b e d i n c l a u s e ( a ) o f t h i s d e f i n i t i o n , o r ( v ) c o m m e n c e a v o l u n t a r y
p r o c e e d i n g u n d e r a n y I n s o l v e n c y L a w , o r f i l e a v o l u n t a r y p e t i t i o n s e e k i n g l i q u i d a t i o n ,
r e o r g a n i z a t i o n , a n a r r a n g e m e n t w i t h c r e d i t o r s o r a n o r d e r f o r r e l i e f u n d e r a n y I n s o l v e n c y L a w , o r
( v i ) f i l e a n a n s w e r a d m i t t i n g t h e m a t e r i a l a l l e g a t i o n s o f a p e t i t i o n f i l e d a g a i n s t i t i n a n y
p r o c e e d i n g r e f e r r e d t o i n t h e f o r e g o i n g s u b c l a u s e s ( i ) t h r o u g h ( v ) , i n c l u s i v e , o f t h i s c l a u s e ( b ) , o r
( v i i ) t a k e a n y a c t i o n f o r t h e p u r p o s e o f e f f e c t i n g a n y o f t h e f o r e g o i n g ; o r ( c ) ( i ) a l l o r a
s u b s t a n t i a l p a r t o f t h e T r u s t E s t a t e s h a l l b e s o l d o r o t h e r w i s e d i s p o s e d o f i n a p u b l i c o r p r i v a t e
s a l e o r d i s p o s i t i o n p u r s u a n t t o a f o r e c l o s u r e o f t h e l i e n t h e r e o n s e c u r i n g a n y S e n i o r O b l i g a t i o n s ,
o r ( i i ) a l l o r a s u b s t a n t i a l p a r t o f t h e T r u s t E s t a t e s h a l l b e t r a n s f e r r e d p u r s u a n t t o a s a l e o r
d i s p o s i t i o n o f s u c h T r u s t E s t a t e i n l i e u o f f o r e c l o s u r e .
" B e n e f i c i a l O w n e r " m e a n s , w i t h r e s p e c t t o a n y B o o k - E n t r y O b l i g a t i o n , t h e
b e n e f i c i a l o w n e r o f s u c h S e n i o r L i e n B o n d a s d e t e r m i n e d i n a c c o r d a n c e w i t h t h e a p p l i c a b l e r u l e s
o f t h e S e c u r i t i e s D e p o s i t o r y f o r s u c h B o o k - E n t r y O b l i g a t i o n s .
" B o a r d " m e a n s t h e B o a r d o f C o m m i s s i o n e r s o f t h e C o m m i s s i o n .
" B o n d C o u n s e l " m e a n s a f i r m o f n a t i o n a l l y - r e c o g n i z e d a t t o r n e y s - a t - l a w
e x p e r i e n c e d i n l e g a l w o r k r e l a t i n g t o t h e i s s u a n c e o f m u n i c i p a l b o n d s s e l e c t e d b y t h e
C o m m i s s i o n .
O H S U S A : 2 6 0 9 3 5 7 0 9 . 9 9
1 2 3
"Bond Obligation" means, as of any given date of calculation, ( 1) with respect to •
any Outstanding Current Interest Obligation, the principal amount of such Obligation, and (2)
with respect to any Outstanding Capital Appreciation Obligation or Convertible Capital
Appreciation Obligation, the Accreted Value thereof.
"Bond Register" means the registration books for the ownership of Senior Lien
Bonds maintained by the Trustee pursuant to Section 2.08.
"Bondholder" or "Holder" or "Owner" means the record owner of any
Obligation shown on the books of registration kept by the Trustee, which, during any period
when such Obligation is a Book-Entry Obligation, shall be the Securities Depository or its
Nominee.
"Book-Entry Obligations" means Obligations issued under a book-entry only
depository system as provided in Section 2.11.
"Business Day" means any day, other than a Saturday, Sunday or other day on
which the Government (as defined in the TIFIA Loan Agreement) or banks are authorized or
obligated by law or executive order to be closed in the State of California or the State of New
York or in any city in which the Principal Office of the Trustee or, with respect to any Senior
Lien Bonds secured by a Credit Support Instrument, the office where draws are to be made on a
Credit Provider is located.
"Calculation Date" means each June 30 and December 31, or, if such day is not a
Business Day, the next preceding Business Day, commencing with such date following the
Substantial Completion Date.
"Calculation Period" means a period of consecutive twelve (12) months.
"Caltrans" means the California Department of Transportation.
"Caltrans DB Cooperative Agreement" means that certain Design-Build
Construction Cooperative Agreement, dated as of December _, 2012, by and between the
Commission and Caltrans, setting forth, among other things, the manner in which the initial
phase of the Riverside SR-91 Corridor Improvement Project will be constructed in accordance
with the CIP Plan using the design-build method of procurement as authorized by the CTC.
"Capital Expenditures Fund" means the Fund by that name created pursuant to
Section 5.02.
"Capital Appreciation Obligations" means the Obligations designated as
Capital Appreciation Obligations in the Supplemental Indenture providing for the issuance of
such Obligations and on which interest is compounded and paid at maturity or on prior
redemption.
"Capital Expenditures Fund Permitted Expenditures" means the expenditures
necessary in the reasonable judgment of the Commission to complete the projects specified in
Schedule I hereto.
OHSUSA:260935709.9 10
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" C a p i t a l E x p e n d i t u r e s F u n d R e q u i r e d B a l a n c e " m e a n s t h e a m o u n t , a s o f t h e
m o s t r e c e n t C o v e r a g e C a l c u l a t i o n D a t e , a s r e a s o n a b l y d e t e r m i n e d b y t h e C o m m i s s i o n b a s e d o n
p r o j e c t i o n s p r e p a r e d b y a C o n s u l t i n g E n g i n e e r , r e q u i r e d t o p a y t h e C a p i t a l E x p e n d i t u r e s F u n d
P e r m i t t e d E x p e n d i t u r e s t h a t r e m a i n t o b e f u n d e d , w h i c h , i n i t i a l l y , i s e q u a l t o [ $ m
2 0 1 3 d o l l a r s ] .
" 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 " m e a n s a n i n s t r u m e n t i n w r i t i n g s i g n e d b y a n
A u t h o r i z e d R e p r e s e n t a t i v e o f t h e C o m m i s s i o n .
" C I P P l a n " m e a n s t h 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 s r e l a t i n g t o t h e R i v e r s i d 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 , i n c l u d i n g p r o j e c t e d c o s t s , t h e u s e o f t o l l r e v e n u e s , a n d a
p r o p o s e d c o m p l e t i o n s c h e d u l e , a n d t h e u s e o f t h e d e s i g n - b u i l d m e t h o d o f p r o c u r e m e n t i n
c o n n e c t i o n w i t h s u c h i m p r o v e m e n t s t o r e d u c e c o s t s , e x p e d i t e c o m p l e t i o n a n d a c h i e v e d e s i g n
f e a t u r e s n o t a c h i e v a b l e t h r o u g h t h e t r a d i t i o n a l d e s i g n - b i d - b u i l d m e t h o d , a s d e s c r i b e d i n t h e
P r o j e c t A u t h o r i z a t i o n R e q u e s t t h e C o m m i s s i o n s u b m i t t e d t o t h e C T C o n J a n u a r y 1 , 2 0 1 0 , a s i t
m a y b e a m e n d e d ;
" C o d e " m e a n s t h e I n t e r n a l R e v e n u e C o d e o f 1 9 8 6 , a s a m e n d e d f r o m t i m e t o t i m e ,
a n d a n y r e g u l a t i o n s p r o m u l g a t e d t h e r e u n d e r .
" C o m m e r c i a l P a p e r P r o g r a m " m e a n s a p r o g r a m o f s h o r t - t e r m O b l i g a t i o n s
h a v i n g t h e c h a r a c t e r i s t i c s o f c o m m e r c i a l p a p e r i n t h a t ( i ) s u c h O b l i g a t i o n s h a v e a s t a t e d m a t u r i t y
n o t l a t e r t h a n 2 7 0 d a y s f r o m t h e i r d a t e o f i s s u e a n d ( i i ) m a t u r i n g O b l i g a t i o n s o f s u c h p r o g r a m
m a y b e p a i d w i t h t h e p r o c e e d s o f r e n e w a l O b l i g a t i o n s .
" C o m m i s s i o n " m e a n s t h e R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n , a p u b l i c
e n t i t y 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 , a n d a n y s u c c e s s o r
t h e r e t o .
" C o m p l e t i o n O b l i g a t i o n s " m e a n s a n y O b l i g a t i o n s i n c u r r e d f o r t h e p u r p o s e o f
f i n a n c i n g t h e c o m p l e t i o n o f t h e R i v e r s i d 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 ( o r a n y
a d d i t i o n a l o r e x p a n d e d f a c i l i t y c o n s t i t u t i n g a p o r t i o n o f t h e T o l l R o a d f o r w h i c h O b l i g a t i o n s
t h e r e t o f o r e b e e n 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 h e r e o f ) , t o t h e e x t e n t n e c e s s a r y t o
c o m p l e t e t h e R i v e r s i d 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 ( o r s u c h a d d i t i o n a l o r e x p a n d e d
f a c i l i t y c o n s t i t u t i n g a p o r t i o n o f t h e T o l l R o a d ) , i n t h e m a n n e r a n d s c o p e c o n t e m p l a t e d a t t h e
t i m e t h a t s u c h O b l i g a t i o n s t h e r e t o f o r e i n c u r r e d w e r e o r i g i n a l l y i n c u r r e d , a n d , t o t h e e x t e n t t h e
s a m e s h a l l b e a p p l i c a b l e , i n a c c o r d a n c e w i t h t h e g e n e r a l p l a n s a n d s p e c i f i c a t i o n s f o r t h e
R i v e r s i d 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 ( o r s u c h a d d i t i o n a l o r e x p a n d e d f a c i l i t y
c o n s t i t u t i n g a p o r t i o n o f t h e T o l l R o a d ) , a s o r i g i n a l l y p r e p a r e d w i t h o n l y s u c h c h a n g e s a s h a v e
b e e n m a d e i n c o n f o r m a n c e w i t h t h e d o c u m e n t s p u r s u a n t t o w h i c h s u c h O b l i g a t i o n s t h e r e t o f o r e
i n c u r r e d w e r e o r i g i n a l l y i n c u r r e d .
" C o n s u l t i n g E n g i n e e r " m e a n s a n i n d e p e n d e n t e n g i n e e r o r e n g i n e e r i n g f i r m , o r
a n a f f i l i a t e t h e r e o f , n a t i o n a l l y r e c o g n i z e d a s b e i n g e x p e r i e n c e d w i t h d e t e r m i n i n g t h e c o s t s o f
c o n s t r u c t i o n , o p e r a t i o n , m a i n t e n a n c e , r e p a i r , a n d / o r r e p l a c e m e n t o f f a c i l i t i e s s i m i l a r t o t h e
R i v e r s i d e S R - 9 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 .
O H S U S A : 2 6 0 9 3 5 7 0 9 . 9 1 1
1 2 5
"Continuing Disclosure Agreement" means, with respect to each Series of
Obligations requiring an undertaking regarding disclosure under Rule 15c2-12, the continuing •
disclosure undertaking entered into by the Commission and, if applicable, the Trustee or a
Dissemination Agent or both, as the same may be supplemented, modified or amended in
accordance with its terms.
"Convertible Capital Appreciation Obligations" means Obligations that
initially are issued as Capital Appreciation Obligations, but later convert to Obligations on which
interest is paid periodically. Convertible Capital Appreciation Obligations shall be Capital
Appreciation Obligations until the conversion date and from and after such conversion date shall
no longer be Capital Appreciation Obligations, but shall be treated as having a principal amount
equal to their Accreted Value on the conversion date.
"Costs of Issuance" means all items of expense directly or indirectly payable by
or reimbursable to the Commission and related to the authorization, execution, sale and delivery
of Obligations, including, but not limited to, advertising and printing costs, costs of preparation
and reproduction of documents, filing and recording fees, initial fees and charges of the Trustee,
legal fees and charges, fees and disbursements of consultants and professionals, financial advisor
fees and expenses, underwriting fees and discounts, rating agency fees, fees and charges for
preparation, execution, transportation and safekeeping of such Obligations, surety, insurance,
liquidity and credit enhancements costs, and any other cost, charge or fee incurred in connection
with the issuance of Obligations.
"Coverage Calculation Date" has the meaning assigned in Section 6.03(b ) .
"Coverage Ratio" has the meaning assigned in Section 6.03(b ).
"Credit Provider" means any municipal bond insurance company, bank or other
financial institution or organization or group of financial institutions or organizations providing a
Credit Support Instrument for a Series of Obligations.
"Credit Support Instrument" means a policy ofinsurance, letter of credit, line
of credit, standby purchase agreement, revolving credit agreement or other credit arrangement
pursuant to which a Credit Provider provides credit or liquidity support with respect to, or
available for, the payment of interest, principal or Purchase Price of any Series of Obligations, as
the same may be amended from time to time pursuant to its terms, and any replacement therefor.
"CTC" means the California Transportation Commission.
"Current Interest Obligations" means the Obligations designated as Current
Interest Obligations in the Supplemental Indenture providing for the issuance of such Obligations
and that pay interest to the Holders thereof on a periodic basis prior to maturity. Current Interest
Obligations also includes Convertible Capital Appreciation Obligations after their conversion
date.
"Defeasance Securities" means noncallable: (i) U.S. Treasury certificates, notes,
bills and bonds, including State and Local Government Series securities; (ii) direct obligations of
the U.S. Treasury which have been stripped by the U.S. Treasury itself; (iii) Resolution Funding
OHSUSA:260935709.9 12
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C o r p . s e c u r i t i e s ( " R E F C O R P " ) , p r o v i d e d , h o w e v e r , o n l y t h e i n t e r e s t c o m p o n e n t o f R E F C O R P
s t r i p s w h i c h h a v e b e e n s t r i p p e d b y r e q u e s t t o t h e F e d e r a l R e s e r v e B a n k o f N e w Y o r k i n b o o k
e n t r y f o r m a r e a c c e p t a b l e ; ( i v ) p r e - r e f u n d e d m u n i c i p a l b o n d s r a t e d t h e s a m e l e v e l a s U . S .
T r e a s u r y N o t e s a n d B o n d s b y M o o d y ' s a n d b y S t a n d a r d & P o o r ' s , p r o v i d e d , h o w e v e r , t h a t i f
s u c h m u n i c i p a l b o n d s a r e r a t e d o n l y b y S t a n d a r d & P o o r ' s , t h e n s u c h p r e - r e f u n d e d m u n i c i p a l
b o n d s m u s t h a v e b e e n p r e - r e f u n d e d w i t h c a s h , d i r e c t U n i t e d S t a t e s o r U n i t e d S t a t e s g u a r a n t e e d
o b l i g a t i o n s ; ( v ) o b l i g a t i o n s i s s u e d b y t h e f o l l o w i n g a g e n c i e s , w h i c h a r e b a c k e d b y t h e f u l l f a i t h
a n d c r e d i t o f t h e U n i t e d S t a t e s : ( a ) F a r m e r s H o m e A d m i n i s t r a t i o n ( F m H A ) - c e r t i f i c a t e s o f
b e n e f i c i a l o w n e r s h i p ; ( b ) G e n e r a l S e r v i c e s A d m i n i s t r a t i o n - p a r t i c i p a t i o n c e r t i f i c a t e s ; ( c ) U . S .
M a r i t i m e A d m i n i s t r a t i o n - G u a r a n t e e d T i t l e X I f i n a n c i n g ; ( d ) S m a l l B u s i n e s s A d m i n i s t r a t i o n
g u a r a n t e e d p a r t i c i p a t i o n c e r t i f i c a t e s a n d g u a r a n t e e d p o o l c e r t i f i c a t e s ; ( e ) G N M A g u a r a n t e e d
M S B a n d p a r t i c i p a t i o n c e r t i f i c a t e s ; a n d ( f ) U . S . D e p a r t m e n t o f H o u s i n g a n d U r b a n D e v e l o p m e n t
( H U D ) L o c a l A u t h o r i t y B o n d s , o r ( v i ) c e r t a i n o b l i g a t i o n s o f g o v e r n m e n t - s p o n s o r e d a g e n c i e s t h a t
a r e n o t b a c k e d b y t h e f u l l f a i t h a n d c r e d i t o f t h e U n i t e d S t a t e s l i m i t e d t o : ( a ) F e d e r a l H o m e L o a n
M o r t g a g e C o r p . ( F H L M C ) d e b t o b l i g a t i o n s ; ( b ) F a r m C r e d i t S y s t e m ( f o r m e r l y F e d e r a l L a n d
B a n k s , F e d e r a l I n t e r m e d i a t e C r e d i t B a n k s , a n d B a n k s f o r C o o p e r a t i v e s ) c o n s o l i d a t e d s y s t e m -
w i d e b o n d s a n d n o t e s ; ( c ) F e d e r a l H o m e L o a n B a n k s ( F H L B a n k s ) c o n s o l i d a t e d d e b t
o b l i g a t i o n s ; ( d ) F e d e r a l N a t i o n a l M o r t g a g e A s s o c i a t i o n ( F N M A ) d e b t o b l i g a t i o n s ; ( e ) S t u d e n t
L o a n M a r k e t i n g A s s o c i a t i o n ( S L M A ) d e b t o b l i g a t i o n s ; a n d ( f ) F i n a n c i n g C o r p . ( F I C O ) d e b t
o b l i g a t i o n s ; a n d ( g ) o t h e r o b l i g a t i o n s a p p r o v e d b y t h e R a t i n g A g e n c i e s f o r d e f e a s a n c e e s c r o w s
r a t e d i n t h e h i g h e s t R a t i n g C a t e g o r y .
" D e s i g n - B u i l d C o n t r a c t " m e a n s [ t o c o m e ] .
" D e s i g n - B u i l d C o n t r a c t o r " m e a n s [ t o c o 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 , w i t h r e s p e c t t o e a c h S e r i e s o f O b l i g a t i o n s
r e q u i r i n g a n u n d e r t a k i n g r e g a r d i n g d i s c l o s u r e u n d e r R u l e 1 5 c 2 - 1 2 , t h e p a r t y ( w h i c h m a y b e t h e
C o m m i s s i o n ) a c t i n g a s d i s s e m i n a t i o n a g e n t u n d e r t h e a p p l i c a b l 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 , o r a n y s u c c e s s o r d i s s e m i n a t i o n a g e n t d e s i g n a t e d i n w r i t i n g b y t h e C o m m i s s i o n a n d
w h i c h h a s f i l e d a w r i t t e n a c c e p t a n c e w i t h t h e C o m m i s s i o n a n d t h e T r u s t e e .
" D T C " m e a n s T h e D e p o s i t o r y T r u s t C o m p a n y , N e w Y o r k , N e w Y o r k o r a n y
s u c c e s s o r t h e r e t o .
" E l e c t r o n i c " m e a n s , w i t h r e s p e c t t o n o t i c e , n o t i c e t h r o u g h t h e i n t e r n e t o r t h r o u g h
a t i m e - s h a r i n g t e r m i n a l .
" E v e n t o f D e f a u l t " m e a n s a n y o f t h e e v e n t s s p e c i f i e d i n S e c t i o n 7 . 0 1 .
" F i n a n c i n g D o c u m e n t s " m e a n s t h i s I n d e n t u r e , a n y S w a p s o r Q u a l i f i e d S w a p
A g r e e m e n t s , a n d a n y d o c u m e n t s a n d / o r i n s t r u m e n t s e v i d e n c i n g , d o c u m e n t i n g , s e c u r i n g o r
o t h e r w i s e r e l a t i n g t o a n y o r a l l o f t h e o b l i g a t i o n s r e l a t i n g t o t h e P a r i t y O b l i g a t i o n s , P e r m i t t e d
S e c o n d L i e n O b l i g a t i o n s , o r S u b o r d i n a t e O b l i g a t i o n s , a l l a s t h e s a m e m a y f r o m t i m e t o t i m e b e
a m e n d e d , m o d i f i e d , e x t e n d e d , r e n e w e d a n d / o r r e s t a t e d , a n d e a c h o t h e r d o c u m e n t o r i n s t r u m e n t
r e q u i r e d 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 a f o r e m e n t i o n e d a g r e e m e n t s .
O H S U S A : 2 6 0 9 3 5 7 0 9 . 9 1 3
1 2 7
"Fiscal Year" means the period of twelve months terminating on June 30 of each
year, or any other annual period hereafter selected and designated by the Commission as its •
Fiscal Year in accordance with applicable law.
"Fitch" means Fitch Ratings, Inc., and its successors and assigns, except that if
such corporation shall be dissolved or liquidated or shall no longer perform the functions of a
securities rating agency, then the tem1 "Fitch" shall be deemed to refer to any other nationally
recognized securities rating agency selected by the Commission.
"Fund" means each fund established in accordance with the terms of this
Indenture.
"Funds Transfer Certificate" means a certificate prepared by the Commission in
accordance with the terms of this Indenture substantially in the form of Exhibit LJ attached
hereto containing the certifications by the Commission required by this Indenture with respect to
a requested transfer of funds from a Fund or Account.
"Hedging Obligations" means, collectively, the payment of (a) all scheduled
amounts payable to the Swap Parties by the Commission under the Swaps or Qualified Swap
Agreements, as applicable (including interest accruing after the date of any filing by the
Commission of any bankruptcy, insolvency or similar proceeding with respect to the
Commission), net of all scheduled amounts payable to the Commission by such Swap Parties,
and (b) all other indebtedness, fees, indemnities and other amounts payable by the Commission
to the Swap Parties under such Swaps or Qualified Swap Agreements, net of all other •
indebtedness, fees, indemnities and other amounts payable by the Swap Parties to the
Commission under such Swaps or Qualified Swap Agreements; provided, that Hedging
Obligations shall not include Hedging Termination Obligations. For the avoidance of doubt, all
calculations of such amounts payable under the Swaps or Qualified Swap Agreements shall be
made in accordance with the terms of the applicable Swaps or Qualified Swap Agreements.
"Hedging Termination Obligations" means the aggregate amount payable to the
Swap Parties by the Commission upon the early unwind of all or a portion of the Swaps or
Qualified Swap Agreements, as applicable, net of all amounts payable to the Commission by
such Swap Parties upori the early unwind of all or a portion of such Swaps or Qualified Swap
Agreements. For the avoidance of doubt, all calculations of such amounts payable under the
Swaps or Qualified Swap Agreements shall be made in accordance with the terms of the
applicable Swaps or Qualified Swap Agreements.
"Indenture" means this Master Indenture as the same may be amended or
supplemented from time to time as permitted hereby.
"Independent Certified Public Accountant" means any certified public
accountant or firm of such accountants appointed by the Commission, and who, or each of
whoin, is independent with respect to the Commission, pursuant to the Statement on Auditing
Standards No. 1 ofthe American Institute of Certified Public Accountants.
OHSUSA:260935709.9 14
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" I n s o l v e n c y L a w " m e a n s t h e U n i t e d S t a t e s B a n k r u p t c y C o d e , i n c l u d i n g
1 1 U . S . C . � 1 0 1 e t s e q . , a s f r o m t i m e - t o - t i m e a m e n d e d a n d i n e f f e c t , a n d a n y s t a t e b a n k r u p t c y ,
i n s o l v e n c y , r e c e i v e r s h i p o r s i m i l a r l a w n o w o r h e r e a f t e r i n e f f e c t .
" M a t u r i t y V a l u e , " w i t h r e s p e c t t o a n y C a p i t a l A p p r e c i a t i o n O b l i g a t i o n , s h a l l
m e a n t h e p r i n c i p a l a m o u n t o f s u c h O b l i g a t i o n p l u s a c c r u e d i n t e r e s t a t t h e m a t u r i t y t h e r e o f a n d ,
w i t h r e s p e c t t o a C o n v e r t i b l e C a p i t a l A p p r e c i a t i o n O b l i g a t i o n , s h a l l m e a n t h e A c c r e t e d V a l u e o f
s u c h O b l i g a t i o n o n t h e c o n v e r s i o n d a t 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 " m e a n s t h e h i g h e s t a m o u n t o f A n n u a l D e b t
S e r v i c e d u e o n t h e a p p l i c a b l e O b l i g a t i o n s o f t h e C o m m i s s i o n f o r a n y C a l c u l a t i o n P e r i o d d u r i n g
t h e p e r i o d f r o m t h e d a t e o f s u c h d e t e r m i n a t i o n t h r o u g h t h e f i n a l m a t u r i t y d a t e o f t h e a p p l i c a b l e
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 p r o p o s e d t o b e i s s u e d .
" M o n t h l y F u n d i n g D a t e " m e a n s t h e l a s t d a y o f e a c h c a l e n d a r m o n t h o r , i f s u c h
d a y i s n o t a B u s i n e s s D a y , t h e n e x t p r e c e d i n g B u s i n e s s D a y .
" M o o d y ' s " m e a n s M o o d y ' s I n v e s t o r s S e r v i c e , a n d i t s s u c c e s s o r s a n d a s s i g n s ,
e x c e p t t h a t i f s u c h c o r p o r a t i o n s h a l l b e d i s s o l v e d o r l i q u i d a t e d o r s h a l l n o l o n g e r p e r f o r m t h e
f u n c t i o n s o f a s e c u r i t i e s r a t i n g a g e n c y , t h e t e r m " M o o d y ' s " s h a l l b e d e e m e d t o r e f e r t o a n y o t h e r
n a t i o n a l l y r e c o g n i z e d s t a t i s t i c a l r a t i n g o r g a n i z a t i o n s e l e c t e d b y t h e C o m m i s s i o n .
" 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 , a n d i t s s u c c e s s o r s
a n d a s s i g n s . U n t i l o t h e r w i s e d e s i g n a t e d b y t h e M S R B , f i l i n g s w i t h t h e M S R B a r e t o b e m a d e
t h r o u g h t h e E l e c t r o n i c M u n i c i p a l M a r k e t A c c e s s ( E M M A ) w e b s i t e o f t h e M S R B l o c a t e d a t
h t t p : / / e m m a . m s r b . o r g .
" N e t R e v e n u e " m e a n s , f o r a n y F i s c a l Y e a r , R e v e n u e l e s s O p e r a t i o n a n d
M a i n t e n a n c e E x p e n s e s f o r t h a t F i s c a l Y e a r ( e x c l u d i n g , i n s u c h c a l c u l a t i o n s , a n y e x t r a o r d i n a r y o r
o n e - t i m e r e v e n u e s f r o m R e v e n u e a n d a n y e x t r a o r d i n a r y o r o n e - t i m e e x p e n s e s f r o m O p e r a t i o n
a n d M a i n t e n a n c e E x p e n s e s w h e n d e t e r m i n i n g N e t R e v e n u e f o r s u c h F i s c a l Y e a r ) , i n ( 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 o f t h e B o r r o w e r f o r F i s c a l Y e a r s 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 , ( b ) t o t h e e x t e n t t h a t 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 , t h e
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 o f t h e C o m m i s s i o n f o r F i s c a l Y e a r s f o r w h i c h 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 a r e a v a i l a b l e o r ( c ) t o t h e e x t e n t t h a t n e i t h e r 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 n o r
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 a r e a v a i l a b l e , p r o j e c t i o n s o f t h e C o m m i s s i o n .
" N o m i n e e " m e a n s t h e n o m i n e e o f t h e S e c u r i t i e s D e p o s i t o r y f o r t h e B o o k - E n t r y
O b l i g a t i o n s , i n w h o s e n a m e s u c h S e n i o r L i e n B o n d s a r e t o b e r e g i s t e r e d . T h e i n i t i a l N o m i n e e
s h a l l b e C e d e & C o . , t h e p a r t n e r s h i p n o m i n e e o f D T C .
" O b l i g a t i o n s " m e a n s a l l 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 f r o m R e v e n u e
i n c u r r e d o r - a s s u m e d b y t h e C o m m i s s i o n f o r b o r r o w e d m o n e y ( i n c l u d i n g i n d e b t e d n e s s a r i s i n g
u n d e r C r e d i t S u p p o r t I n s t r u m e n t s ) a n d a l l o t h e r f i n a n c 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 r e l a t i n g
t o t h e T o l l R o a d t h a t , 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 r e i n c l u d e d
a s a l i a b i l i t y o n a b a l a n c e s h e e t f o r t h e T o l l R o a d b o o k s a n d r e c o r d s , i n c l u d i n g a n y b o n d s , n o t e s ,
c e r t i f i c a t e s o r o t h e r o b l i g a t i o n s , a s t h e c a s e m a y b e , a u t h e n t i c a t e d a n d d e l i v e r e d u n d e r a n d
p u r s u a n t t o t h i s I n d e n t u r e a s S e n i o r L i e n O b l i g a t i o n s , P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s o r
O H S U S A : 2 6 0 9 3 5 7 0 9 . 9 1 5
1 2 9
Subordinate Obligations. For the purpose of determining the "Obligations" payable from •
Revenue, Obligations that are no longer Outstanding shall be excluded.
"OCTA" means the Orange County Transportation Authority, a public agency
duly formed and existing under the laws of the State of California, and any successor thereto.
"OCT A Cooperative Agreement" means that certain Cooperative Agreement for
State Route 91 Express Lanes and Corridor Improvements Between Riverside County
Transportation Commission and Orange County Transportation Commission, dated as of
December 16, 2011, by and between the Commission and OCT A, setting forth, among other
things, the manner in which the initial phase of the Riverside SR-91 Corridor Improvement
Project will be constructed in accordance with the CIP Plan using the design-build method of
procurement as authorized by Section 6802 of the California Public Contract Code.
"OCT A Franchise Agreement" means the Amended and Restated Development
Franchise Agreement, dated as of June 30, 1993, as amended and supplemented by
Amendment 1, dated as of July 16, 1993, Amendment 2, dated December 30, 2002 and
Amendment No.3 to Amended and Restated Development Franchise Agreement (State Route 91
Median Improvements), dated as of December 12, 2011, each by and between Caltrans and
OCTA, as successor in interest to the California Private Transportation Company, L.P. ("CPTC")
pursuant to the Estoppel Certificate and Assignment and Assumption Agreement, dated as of
December 30, 2002, by and among CPTC, OCTA, and Caltrans.
"One Month USD LIBOR Rate" means the British Banker's Association •
average of interbank offered rates in the London market for Dollar deposits for a one month
period.
"Operating Agreement" means the SR-91 Express Lanes Operating Agreement
dated , 20_], by and among the Commission, OCTA and the Toll Operator, as
amended, modified, supplemented in accordance with the terms of this. Indenture and the
Operating Agreement, or any other operating agreement entered into by the Commission and one
or more entities in accordance with the terms hereof.
"Operation and Maintenance Expenses" means all reasonable current expenses
incurred and paid or payable by the Commission for the operation and maintenance of the Toll
Road payable from Revenue, determined in accordance with generally accepted accounting
principles, including, without limitation, payments with respect to financing leases and
installment purchase agreements, all amounts paid or payable under the Operating Agreement,
the Police Services Agreement and similar agreements, costs for operation, maintenance and
repair, consumables, payments under any lease or rental payments properly considered to be
operating expenses, payments pursuant to agreements for the management of the Toll Road,
taxes, . premiums paid or payable on any insurance, payments for oversight services, all
administrative, engineering and policing costs, costs for any security, toll collection and
enforcement expenses, fees and expenses of the Traffic Consultant, the Trustee, each trustee for
or holder of Permitted Second Lien Obligations or Subordinate Obligations, any rating agency,
credit, liquidity or remarketing fees relating to Senior Lien Bonds or Parity Obligations, and any
other Secured Creditor (for the avoidance of doubt, such fees, administrative costs and expenses •
OHSUSA:260935709.9 16
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d o n o t i n c l u d e a n y c o m m i t m e n t f e e s , t e r m i n a t i o n f e e s , f i n e s o r o t h e r p e n a l t i e s o r a n y p a y m e n t s
t o b e m a d e t o S w a p P a r t i e s i n c l u d i n g H e d g i n g O b l i g a t i o n s a n d H e d g i n g T e r m i n a t i o n
O b l i g a t i o n s ) , a n y i n s u r a n c e c o n s u l t a n t , l e g a l a n d a c c o u n t i n g e x p e n s e s , a n d a n y o t h e r r e a s o n a b l e
a n d n e c e s s a r y e x p e n s e p a i d o r p a y a b l e f o r t h e o p e r a t i o n s a n d m a i n t e n a n c e o f t h e T o l l R o a d , b u t
e x c l u d i n g e x p e n s e s p a i d o r p a y a b l e f r o m p r o c e e d s o f S e n i o r L i e n B o n d s o r P a r i t y O b l i g a t i o n s ,
c a p i t a l e x p e n d i t u r e s , e x p e n d i t u r e s f o r r e h a b i l i t a t i o n a n d o p e r a t i o n a l i m p r o v e m e n t p r o j e c t s o n t h e
T o i l R o a d , d e p r e c i a t i o n o r o b s o l e s c e n c e c h a r g e s o r r e s e r v e s t h e r e f o r e , d e b t s e r v i c e f o r S e n i o r
L i e n B o n d s , P a r i t y O b l i g a t i o n s , P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s o r S u b o r d i n a t e O b l i g a t i o n s ,
a n d a n y n o n - c a s h c h a r g e s , s u c h a s d e p r e c i a t i o n , a m o r t i z a t i o n o f i n t a n g i b l e s a n d o t h e r
b o o k k e e p i n g e n t r i e s o f a s i m i l a r n a t u r e .
" O p e r a t i o n a n d M a i n t e n a n c e F u n d " m e a n s t h e F u n d b y t h a t n a m e c r e a t e d
p u r s u a n t t o S e c t i o n 5 . 0 6 .
" O p i n i o n o f B o n d C o u n s e l " m e a n s a w r i t t e n o p i n i o n o f B o n d C o u n s e l .
" O r d i n a n c e " m e a n s O r d i n a n c e N o . 0 2 - 0 0 1 , n a m e d t h e " T r a n s p o r t a t i o n
E x p e n d i t u r e P l a n a n d R e t a i l T r a n s a c t i o n a n d U s e T a x O r d i n a n c e , " 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 , p u r s u a n t t o t h e p r o v i s i o n s o f t h e S a l e s T a x A c t .
" O u t s t a n d i n g , " w h e n u s e d w i t h r e f e r e n c e t o O b l i g a t i o n s h e r e u n d e r m e a n s a l l
O b l i g a t i o n s t h a t h a v e b e e n i s s u e d b y t h e C o m m i s s i o n h e r e u n d e r o r p u r s u a n t h e r e t o , e x c e p t s u c h
O b l i g a t i o n s : ( i ) c a n c e l e d o r d e l i v e r e d f o r c a n c e l l a t i o n ; ( i i ) d e e m e d t o b e p a i d i n a c c o r d a n c e w i t h
S e c t i o n 1 0 . 0 2 o r a n y s i m i l a r p r o v i s i o n s i n t h e c o n s t i t u e n t i n s t r u m e n t s d e f i n i n g t h e r i g h t s o f t h e
h o l d e r s o f s u c h O b l i g a t i o n s ; ( i i i ) i n l i e u o f w h i c h o t h e r O b l i g a t i o n s h a v e b e e n a u t h e n t i c a t e d
u n d e r S e c t i o n s 2 . 0 7 o r 2 . 0 8 o r a n y s i m i l a r p r o v i s i o n s i n t h e c o n s t i t u e n t i n s t r u m e n t s d e f i n i n g t h e
r i g h t s o f t h e h o l d e r s o f s u c h O b l i g a t i o n s ; a n d ( i v ) t o t h e e x t e n t d e s c r i b e d i n S e c t i o n 9 . 0 5 ,
O b l i g a t i o n s h e l d b y o r f o r t h e a c c o u n t o f t h e C o m m i s s i o n .
" P a r i t y O b l i g a t i o n s " m e a n s o b l i g a t i o n s o f t h e C o m m i s s i o n t h a t a r e s e c u r e d b y
t h e T r u s t E s t a t e o n a p a r i t y w i t h S e n i o r L i e n B o n d s , i n c l u d i n g p a y m e n t s t o t h e h o l d e r s o f
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 t e r e d i n t o p u r s u a n t t o C a l i f o r n i a G o v e r n m e n t C o d e s e c t i o n
5 9 2 2 ( o r a n y s i m i l a r s t a t u t e ) , i n e a c h c a s e t o t h e e x t e n t t h e C o m m i s s i o n h a s c o n t r a c t e d t o m a k e
t h o s e p a y m e n t s a s P a r i t y O b l i g a t i o n s .
" P a r t i c i p a t i n g U n d e r w r i t e r " m e a n s a n y o f t h e o r i g i n a l u n d e r w r i t e r s o f a n y
S e r i e s o f O b l i g a t i o n s r e q u i r e d t o c o m p l y w i t h R u l e 1 5 c 2 - 1 2 .
" P e r m i t t e d I n v e s t m e n t s " m e a n s t h e f o l l o w i n g :
( i ) a n y b o n d s o r o t h e r o b l i g a t i o n s w h i c h a s t o p r i n c i p a l a n d i n t e r e s t c o n s t i t u t e
d i r e c t o b l i g a t i o n s o f , o r a r e u n c o n d i t i o n a l l y g u a r a n t e e d b y , t h e U n i t e d S t a t e s o f A m e r i c a ,
i n c l u d i n g o b l i g a t i o n s o f a n y o f t h e f e d e r a l a g e n c i e s a n d f e d e r a l l y s p o n s o r e d e n t i t i e s s e t f o r t h i n
c l a u s e ( i i i ) b e l o w t o t h e e x t e n t u n c o n d i t i o n a l l y g u a r a n t e e d b y t h e U n i t e d S t a t e s o f A m e r i c a ;
( i i ) a n y c e r t i f i c a t e s , r e c e i p t s , s e c u r i t i e s o r o t h e r o b l i g a t i o n s e v i d e n c i n g
o w n e r s h i p o f , o r t h e r i g h t t o r e c e i v e , a s p e c i f i e d p o r t i o n o f o n e o r m o r e i n t e r e s t p a y m e n t s o r
O H S U S A : 2 6 0 9 3 5 7 0 9 . 9 1 7
1 3 1
principal payments, or any combination thereof, to be made on any bond, note, or other •
obligation described above in clause (i);
(iii) obligations of the Federal National Mortgage Association, the
Government National Mortgage Association, Federal Home Loan Banks, Farmers Home
Administration and Federal Home Loan Mortgage Corporation;
(iv) housing authority bonds issued by public agencies or municipalities and
fully secured as to the payment of both principal and interest by a pledge of annual contributions
under an annual contributions contract or contracts with the United States of America; or project
notes issued by public agencies or municipalities and fully secured as to the payment of both
principal and interest by a requisition or payment agreement with the United States of America;
(v) obligations of any state, territory or commonwealth of the United States of
America or any political subdivision thereof or any agency or department of the foregoing;
provided that at the time of their purchase such obligations have a Threshold Rating;
(vi) any bonds or other obligations of any state of the United States of America
or any political subdivision thereof (a) which are not callable prior to maturity or as to which
irrevocable instructions have been given to the trustee of such bonds or other obligations by the
obligor to give due notice of redemption and to call such bonds for redemption on the date or
dates specified in such instructions, (b) which are secured as to principal and interest and
redemption premium, if any, by a fund consisting only ofcash or bonds or other obligations of
the character described above in clause (i) or (ii) which fund may be applied only to the payment •
of such principal of and interest and redemption premium, if any, on such bonds or other
obligations on the interest payment dates and the maturity date or dates thereof or the specified
redemption date or dates pursuant to such irrevocable instructions, as appropriate, (c) as to which
the principal of and interest on the bonds and obligations of the character described above in
clause (i) or (ii) which have been deposited in such fund along with any cash on deposit in such
fund are sufficient to pay the principal of and interest and redemption premium, if any, on the
bonds or other obligations described in this clause (vi) on the interest payment dates and the
maturity date or dates thereof or on the redemption date or dates specified in the irrevocable
instructions referred to in subclause (a) of this clause (vi), as appropriate, and (d) which have a
long-term Threshold Rating at the time of their purchase;
(vii) bonds, notes, debentures or other evidences of indebtedness issued or
guaranteed by any corporation which are, at the time of purchase, have a short-term Threshold
Rating, or, if the term of such indebtedness is longer than three (3) years, a long-term Threshold
Rating;
(viii) demand or time deposits or certificates of deposit, whether negotiable or
nonnegotiable, issued by any bank or trust company organized under the laws of any state of the
United States of America or any national banking association (including the Trustee), provided
that such certificates of deposit shall be purchased directly from such a bank, trust company or
national banking association and shall be either (a) continuously and fully insured by the Federal
Deposit Insurance Corporation, (b) continuously and fully secured by such securities and
obligations as are described above in clauses (i) through (v), inclusive, which shall have a market •
OHSUSA:260935709.9 18
132
" v a l u e ( e x c l u s i v e o f a c c r u e d i n t e r e s t ) a t a l l t i m e s a t l e a s t e q u a l t o t h e p r i n c i p a l a m o u n t o f s u c h
c e r t i f i c a t e s o f d e p o s i t a n d s h a l l b e l o d g e d w i t h t h e T r u s t e e , a s c u s t o d i a n , b y t h e b a n k , t r u s t
c o m p a n y o r n a t i o n a l b a n k i n g a s s o c i a t i o n i s s u i n g s u c h c e r t i f i c a t e s o f d e p o s i t , a n d t h e b a n k , t r u s t
c o m p a n y o r n a t i o n a l b a n k i n g a s s o c i a t i o n i s s u i n g e a c h s u c h c e r t i f i c a t e o f d e p o s i t r e q u i r e d t o b e
s o s e c u r e d s h a l l f u r n i s h t h e T r u s t e e w i t h a n u n d e r t a k i n g s a t i s f a c t o r y t o i t t h a t t h e a g g r e g a t e
m a r k e t v a l u e o f a l l s u c h o b l i g a t i o n s s e c u r i n g e a c h s u c h c e r t i f i c a t e o f d e p o s i t w i l l a t a l l t i m e s b e
a n 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 e a c h s u c h c e r t i f i c a t e o f d e p o s i t a n d t h e T r u s t e e s h a l l
b e e n t i t l e d t o r e l y o n e a c h s u c h u n d e r t a k i n g , o r ( c ) b e i s s u e d b y a n i n s t i t u t i o n t h e s e n i o r d e b t
o b l i g a t i o n s o f w h i c h a r e r a t e d " A - " o r h i g h e r b y S t a n d a r d & P o o r ' s ;
( i x ) t a x a b l e c o m m e r c i a l p a p e r , o t h e r t h a n t h a t i s s u e d b y b a n k h o l d i n g
c o m p a n i e s , o r t a x - e x e m p t c o m m e r c i a l p a p e r a s s i g n e d a s h o r t - t e r m T h r e s h o l d R a t i n g a t t h e t i m e
o f p u r c h a s e ;
( x ) v a r i a b l e r a t e o b l i g a t i o n s r e q u i r e d t o b e r e d e e m e d o r p u r c h a s e d b y t h e
o b l i g o r o r i t s a g e n t o r d e s i g n e e u p o n d e m a n d o f t h e h o l d e r t h e r e o f s e c u r e d a s t o s u c h r e d e m p t i o n
o r p u r c h a s e r e q u i r e m e n t b y a l i q u i d i t y a g r e e m e n t w i t h a c o r p o r a t i o n a n d a s t o t h e p a y m e n t o f
i n t e r e s t a n d p r i n c i p a l e i t h e r u p o n m a t u r i t y o r r e d e m p t i o n ( o t h e r t h a n u p o n d e m a n d b y t h e h o l d e r
t h e r e o f ) t h e r e o f b y a n u n c o n d i t i o n a l c r e d i t f a c i l i t y o f a c o r p o r a t i o n , p r o v i d e d � t h a t t h e v a r i a b l e
r a t e o b l i g a t i o n s t h e m s e l v e s h a v e a s h o r t - t e r m T h r e s h o l d R a t i n g , i f a n y , a n d a l o n g - t e r m
T h r e s h o l d R a t i n g , i f a n y , a n d t h a t t h e c o r p o r a t i o n s p r o v i d i n g t h e l i q u i d i t y a g r e e m e n t a n d c r e d i t
f a c i l i t y h a v e , a t t h e d a t e o f a c q u i s i t i o n o f t h e v a r i a b l e r a t e o b l i g a t i o n b y t h e T r u s t e e , a n
o u t s t a n d i n g i s s u e o f u n s e c u r e d , u n i n s u r e d a n d u n g u a r a n t e e d d e b t o b l i g a t i o n s a s s i g n e d a
" T h r e s h o l d R a t i n g ;
"
( x i ) a n y r e p u r c h a s e a g r e e m e n t w i t h a n y b a n k o r t r u s t c o m p a n y o r g a n i z e d
u n d e r t h e l a w s o f a n y s t a t e o f t h e U n i t e d S t a t e s o r a n y n a t i o n a l b a n k i n g a s s o c i a t i o n ( i n c l u d i n g
t h e T r u s t e e ) h a v i n g a m i n i m u m p e r m a n e n t c a p i t a l o f o n e h u n d r e d m i l l i o n d o l l a r s ( $ 1 0 0 , 0 0 0 , 0 0 0 )
o r g o v e r n m e n t b o n d d e a l e r r e p o r t i n g t o , t r a d i n g w i t h , a n d r e c o g n i z e d a s a p r i m a r y d e a l e r b y t h e
F e d e r a l R e s e r v e B a n k o f N e w Y o r k , w h i c h a g r e e m e n t i s s e c u r e d b y a n y o n e o r m o r e o f t h e
s e c u r i t i e s a n d o b l i g a t i o n s d e s c r i b e d i n c l a u s e s ( i ) , ( i i ) , ( i i i ) o r ( i v ) a b o v e , w h i c h s h a l l h a v e a
m a r k e t v a l u e ( e x c l u s i v e o f a c c r u e d i n t e r e s t a n d v a l u e d a t l e a s t m o n t h l y ) a t l e a s t e q u a l t o 1 0 3 % o f
t h e p r i n c i p a l a m o u n t o f s u c h i n v e s t m e n t a n d s h a l l b e l o d g e d w i t h t h e T r u s t e e o r o t h e r f i d u c i a r y ,
a s c u s t o d i a n f o r t h e T r u s t e e , b y t h e b a n k , t r u s t c o m p a n y , n a t i o n a l b a n k i n g a s s o c i a t i o n o r b o n d
d e a l e r e x e c u t i n g s u c h r e p u r c h a s e a g r e e m e n t , a n d t h e e n t i t y e x e c u t i n g e a c h s u c h r e p u r c h a s e
a g r e e m e n t r e q u i r e d t o b e s o s e c u r e d s h a l l f u r n i s h t h e T r u s t e e w i t h a n u n d e r t a k i n g s a t i s f a c t o r y t o
i t t h a t t h e a g g r e g a t e m a r k e t v a l u e o f a l l s u c h o b l i g a t i o n s s e c u r i n g e a c h s u c h r e p u r c h a s e
a g r e e m e n t ( a s v a l u e d a t l e a s t m o n t h l y ) w i l l b e a n a m o u n t e q u a l t o 1 0 3 % o f t h e p r i n c i p a l a m o u n t
o f e a c h s u c h r e p u r c h a s e a g r e e m e n t a n d t h e T r u s t e e s h a l l b e e n t i t l e d t o r e l y o n e a c h s u c h
u n d e r t a k i n g ;
( x i i ) a n y c a s h s w e e p o r s i m i l a r a c c o u n t a r r a n g e m e n t o f o r a v a i l a b l e t o t h e
T r u s t e e , t h e i n v e s t m e n t s o f w h i c h a r e l i m i t e d t o i n v e s t m e n t s d e s c r i b e d i n c l a u s e s ( i ) , ( i i ) , ( i i i ) ,
( i v ) , ( v ) a n d ( x i ) o f t h i s d e f i n i t i o n o f P e r m i t t e d I n v e s t m e n t s a n d a n y m o n e y m a r k e t f u n d , t h e
e n t i r e i n v e s t m e n t s o f w h i c h a r e l i m i t e d t o i n v e s t m e n t s d e s c r i b e d i n c l a u s e s ( i ) , ( i i ) , ( i i i ) , ( i v ) , ( v )
a n d ( x i ) o f t h i s d e f i n i t i o n o f P e r m i t t e d I n v e s t m e n t s ; p r o v i d e d t h a t a s u s e d i n t h i s c l a u s e ( x i i ) a n d
c l a u s e ( x i i i ) i n v e s t m e n t s w i l l b e d e e m e d t o s a t i s f y t h e r e q u i r e m e n t s o f c l a u s e ( x i ) i f t h e y m e e t t h e
O H S U S A : 2 6 0 9 3 5 7 0 9 . 9 1 9
1 3 3
requirements set forth in clause (xi) ending with the words "clauses (i), (ii), (iii) or (iv) above" •
and without regard to the remainder of such clause (xi);
(xiii) any investment agreement with a financial institution or insurance
company or whose obligations are guaranteed by a financial institution or insurance company
which: (a) has at the date of execution thereof an outstanding issue of unsecured, uninsured and
unguaranteed debt obligations or a claims paying ability assigned a Threshold Rating; or (b) is
fully secured by obligations described in items (i), (ii), (iii) or (iv) of the definition of Permitted
Investments which are (A) valued not less frequently than monthly and have a fair market value,
exclusive of accrued interest, at all times at least equal to the principal amount of the investment,
(B) held by the Trustee or other custodian acceptable to the Trustee, (C) subject to a perfected
first lien in the Trustee, and (D) free and clear from all third party liens;
(xiv) shares of beneficial interest in diversified management companies
investing exclusively in securities and obligations described in clauses (i) through (xiii) of this
definition of Permitted Investments and which companies have been assigned a long-term
Threshold Rating or have an investment advisor registered with the Securities and Exchange
Commission with not less than five (5) years experience investing in such securities and
obligations and with assets under management in excess of $500,000,000;
(xv) shares in a common law trust established pursuant to Title 1, Division 7,
Chapter 5 of the Government Code of the State which invests exclusively in investments
permitted by Section 53635 of Title 5, Division 2, Chapter 4 of the Government Code of the
State, as it may be amended;
(xvi) bankers' acceptances issued by domestic or foreign banks, which are
eligible for purchase by the Federal Reserve System, the short-term paper of which has a short-
term Threshold Rating, which purchases may not exceed two hundred seventy (270) days
maturity;
(xvii) the pooled investment fund of the County of Riverside, California, which
is administered in accordance with the investment policy of said County as established by the
Treasurer/Tax Collector thereof, as permitted by Section 53601 of the Government Code of the
State, copies of which policy are available upon written request to said Treasurer/Tax Collector;
(xviii) the Local Agency Investment Fund or similar pooled fund operated by or
on behalf of the State of California and which is authorized to accept investments of moneys held
in any of the Funds or Accounts e,stablished pursuant to this Indenture;
(xix) obligations ofthe Resolution Trust Corporation and interest obligations of
the Resolution Funding Corporation;
(xx) financial futures or financial option contracts with an entity the debt
securities of which are assigned a Threshold Rating; and
(xxi) any other forms of investments, including repurchase agreements,
approved by the Board and consented to by each Credit Provider then providing a Credit Support
Instrument, subject to the terms of Section 11.03(b) hereof, for a Series of Senior Lien Bonds.
OHSUSA:260935709.9 20
134
•
•
"
"
"
" P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s " m e a n s ( i ) a n y O b l i g a t i o n s t h a t a r e
s u b o r d i n a t e d i n r i g h t o f p a y m e n t a n d l i e n p r i o r i t y t o t h e S e n i o r L i e n B o n d s a n d P a r i t y
O b l i g a t i o n s a n d , p r i o r t o a B a n k r u p t c y R e l a t e d E v e n t , s e n i o r i n r i g h t o f p a y m e n t a n d l i e n p r i o r i t y
t o t h e S u b o r d i n a t e O b l i g a t i o n s , a n d ( i i ) a n y r e l a t e d H e d g i n g O b l i g a t i o n s .
" P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s A c c o u n t " m e a n s t h e A c c o u n t b y t h a t n a m e
c r e a t e d w i t h i n t h e P r o j e c t F u n d p u r s u a n t t o S e c t i o n 5 . 0 2 .
" P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s F u n d " m e a n s t h e F u n d b y t h a t n a m e
c r e a t e d p u r s u a n t t o S e c t i o n 5 . 0 2 .
" P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s I n t e r e s t A c c o u n t " m e a n s t h e A c c o u n t b y
t h a t n a m e c r e a t e d w i t h i n t h e P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s F u n d p u r s u a n t t o S e c t i o n 5 . 0 2 .
" P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s P r i n c i p a l A c c o u n t " m e a n s t h e A c c o u n t
b y t h a t n a m e c r e a t e d w i t h i n t h e P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s F u n d p u r s u a n t t o S e c t i o n
5 . 0 2 .
" P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s R e s e r v e F u n d " m e a n s t h e A c c o u n t b y t h a t
n a m e c r e a t e d p u r s u a n t t o S e c t i o n 5 . 0 2 .
" P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s R e s e r v e F u n d R e q u i r e d B a l a n c e " s h a l l
h a v e t h e m e a n i n g a s s i g n e d t o t h a t t e r m i n a S u p p l e m e n t a l I n d e n t u r e p u r s u a n t t o w h i c h P e r m i t t e d
S e c o n d L i e n O b l i g a t i o n s a r e i n c u r r e d .
p u b l i c b o d y .
" P e r s o n " m e a n s a n y n a t u r a l p e r s o n , f i r m , p a r t n e r s h i p , a s s o c i a t i o n , c o r p o r a t i o n , o r
" P o l i c e S e r v i c e s A g r e e m e n t " m e a n s t h e P o l i c e S e r v i c e s A g r e e m e n t , d a t e d a s o f
[ , 2 0 _ j , b y a n d b e t w e e n t h e S t a t e o f C a l i f o r n i a , a c t i n g b y a n d t h r o u g h t h e C a l i f o r n i a
H i g h w a y P a t r o l , a n d t h e C o m m i s s i o n , a s a m e n d e d , m o d i f i e d a n d s u p p l e m e n t e d i n a c c o r d a n c e
w i t h i t s t e r m s .
" P r i n c i p a l O f f i c e " m e a n s , w i t h r e s p e c t t o t h e T r u s t e e , t h e c o r p o r a t e t r u s t o f f i c e
o f t h e T r u s t e e a t 6 3 3 W e s t F i f t h S t r e e t , 2 4 t h F l o o r , L o s A n g e l e s , C A 9 0 0 7 1 , A t t e n t i o n :
C o r p o r a t e T r u s t S e r v i c e s , a n d s o l e l y f o r p u r p o s e s o f t h e p r e s e n t a t i o n o f S e n i o r L i e n B o n d s f o r
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 , s u c h o t h e r o r a d d i t i o n a l o f f i c e s a s m a y b e d e s i g n a t e d b y t h e
T r u s t e e f r o m t i m e t o t i m e .
" P r o j e c t " m e a n s t h e R i v e r s i d 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 a n d
a d d i t i o n a l c a p i t a l p r o j e c t s r e l a t e d t h e r e t o t h a t t h e C o m m i s s i o n d e t e r m i n e s t o f i n a n c e h e r e u n d e r .
" P r o j e c t C o s t s " m e a n s a l l o r a n y p a r t o f t h e f o l l o w i n g w i t h r e s p e c t t o t h e P r o j e c t :
( a ) t h e c o s t o f s t u d y , d e s i g n , a c q u i s i t i o n , c o n s t r u c t i o n , e x p a n s i o n ,
e n l a r g e m e n t , e x t e n s i o n , r e c o n s t r u c t i o n , r e s t o r a t i o n , r e p a i r a n d r e h a b i l i t a t i o n o f t h e P r o j e c t o r
p o r t i o n t h e r e o f ( i n c l u d i n g , b u t n o t l i m i t e d t o , i n d e m n i t y a n d s u r e t y b o n d s , p e r m i t s , t a x e s ,
O H S U S A : 2 6 0 9 3 5 7 0 9 . 9 2 1
1 3 5
licenses, insurance premiums, or other municipal or governmental charges lawfully levied or •
assessed during construction);
(b) the cost of acquisition of all real or personal property, rights, rights-of-
way, franchises, easements and interests acquired or used for the Project or portion thereof,
(c) the cost of site preparation, including demolishing or removing any
structures on land so acquired and the cost of acquiring any land to which the structures may be
removed;
(d) any cost of borings and other preliminary investigations necessary or
incident to determining the feasibility or practicability of constructing the Project or portion
thereof and any cost necessary or desirable to satisfy conditions associated with the issuance of
any permit for the construction thereof (including the costs of environmental related mitigation
required in connection therewith);
stock;
(e) the cost of all machinery and equipment, vehicles, materials and rolling
(f) Costs oflssuance;
(g) interest on Obligations for the period prior to and during acquisition or
completion of construction (or such longer period as may be allowed by applicable law), as
determined by the Commission;
(h) the cost of architectural, engineering, environmental.feasibility, traffic and
revenue, economic and demographic, appraisal, financial, and legal services;
(i) planning, investigations, studies, evaluations, plans, specifications,
estimates, and administrative and other expenses that are necessary or incidental to the
determination of the feasibility of constructing the Project or portion thereof or incidental to the
obtaining of construction contracts or to the construction (including construction administration
and inspection), acquisition or financing thereof and that constitute capital costs;
(j) Operation and Maintenance Expenses occurring during and for a period of
up to one year after acquisition or completion of construction, as determined by the Commission,
provided that, if applicable, the Trustee has received an Opinion of Bond Counsel (which
opinion may address either specific Operation and Maintenance Expenses or categories of
Operation and Maintenance Expenses) to the effect that the treatment of such Operation and
Maintenance Expenses as a Project Cost will not adversely affect the exclusion of interest on any
Outstanding Obligations from gross income for federal income tax purposes;
(k) the repayment or reimbursement of any Obligation, loan or advance for
any of the foregoing; and
(I) such other costs and expenses as are permitted by the Act or other
applicable law at the time such Obligations are issued.
OHSUSA:260935709.9 22
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" P r o j e c t F u n d " m e a n s t h e F u n d b y t h a t n a m e e s t a b l i s h e d p u r s u a n t t o
S e c t i o n 5 . 0 2 .
" P u r c h a s e P r i c e " m e a n s , w i t h r e s p e c t t o S e n i o r L i e n B o n d s , t h e a m o u n t s e t f o r t h
i n t h e I n d e n t u r e a s t h e a m o u n t t o b e p a i d w h e n s u c h S e n i o r L i e n B o n d s a r e t e n d e r e d f o r p u r c h a s e
o r d e e m e d t e n d e r e d f o r p u r c h a s e 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 .
" Q u a l i f i e d S w a p A g r e e m e n t " m e a n s a c o n t r a c t o r a g r e e m e n t , i n t e n d e d t o p l a c e
S e n i o r L i e n B o n d s o r s u c h i n v e s t m e n t s a s t h e C o m m i s s i o n s h a l l s p e c i f Y u n t h e i n t e r e s t r a t e ,
c u r r e n c y , c a s h f l o w o r o t h e r b a s i s d e s i r e d b y t h e C o m m i s s i o n , p a y m e n t s ( o t h e r t h a n p a y m e n t s o f
f e e s a n d e x p e n s e s a n d t e r m i n a t i o n p a y m e n t s ) w i t h r e s p e c t t o w h i c h � t h e C o m m i s s i o n h a s
s p e c i f i e d s h a l l b e p a y a b l e f r o m R e v e n u e o n a p a r i t y w i t h t h e p a y m e n t o f S e n i o r L i e n 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 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 , c u r r e n c y s w a p a g r e e m e n t ,
f o r w a r d p a y m e n t c o n v e r s i o n a g r e e m e n t o r f u t u r e s c o n t r a c t , a n y c o n t r a c t p r o v i d i n g f o r p a y m e n t s
b a s e d o n l e v e l s o f , o r c h a n g e s i n , i n t e r e s t r a t e s , c u r r e n c y e x c h a n g e r a t e s , s t o c k o r o t h e r i n d i c e s ,
a n y c o n t r a c t t o e x c h a n g e c a s h f l o w s o r a s e r i e s o f p a y m e n t s , o r a n y c o n t r a c t , 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 i n t e r e s t r a t e f l o o r o r c a p , o r a n o p t i o n , p u t o r c a l l , t o h e d g e p a y m e n t , c u r r e n c y , r a t e ,
s p r e a d o r s i m i l a r e x p o s 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 a S w a p P a r t y .
" R a t i n g A g e n c y " m e a n s , a s a n d t o t h e e x t e n t a p p l i c a b l e t o a S e r i e s o f
O b l i g a t i o n s , e a c h o f F i t c h , M o o d y ' s a n d S t a n d a r d & P o o r ' s t h e n m a i n t a i n i n g a r a t i n g o n s u c h
S e r i e s o f O b l i g a t i o n s a t t h e r e q u e s t o f t h e C o m m i s s i o n .
" R a t i n g C a t e g o r y " m e a n s : ( i ) w i t h r e s p e c t t o a n y l o n g - t e r m r a t i n g c a t e g o r y , a l l
r a t i n g s d e s i g n a t e d b y a p a r t i c u l a r l e t t e r o r c o m b i n a t i o n o f l e t t e r s , w i t h o u t r e g a r d t o a n y
n u m e r i c a l m o d i f i e r , p l u s o r m i n u s s i g n o r o t h e r m o d i f i e r ; a n d ( i i ) w i t h r e s p e c t t o a n y s h o r t - t e r m
o r c o m m e r c i a l p a p e r r a t i n g c a t e g o r y , a l l r a t i n g s d e s i g n a t e d b y a p a r t i c u l a r l e t t e r o r c o m b i n a t i o n
o f l e t t e r s a n d t a k i n g i n t o a c c o u n t a n y n u m e r i c a l m o d i f i e r , b u t n o t a n y p l u s o r m i n u s s i g n o r o t h e r
m o d i f i e r .
" R a t i n g C o n f i r m a t i o n " m e a n s w r i t t e n e v i d e n c e f r o m e a c h R a t i n g A g e n c y t h e n
r a t i n g a n y S e r i e s o f O b l i g a t i o n s a t t h e r e q u e s t o f t h e C o m m i s s i o n t o t h e e f f e c t t h a t , f o l l o w i n g t h e
e v e n t t h a t r e q u i r e s t h e R a t i n g C o n f i r m a t i o n , t h e t h e n c u r r e n t r a t i n g f o r s u c h S e r i e s o f O b l i g a t i o n s
w i l l n o t b e l o w e r e d t o a l o w e r R a t i n g C a t e g o r y o r s u s p e n d e d o r w i t h d r a w n s o l e l y a s a r e s u l t o f
t h e o c c u r r e n c e o f s u c h e v e n t .
" R e b a t e F u n d " m e a n s t h e F u n d b y t h a t n a m e c r e a t e d p u r s u a n t t o S e c t i o n 5 . 0 2 .
" R e d e m p t i o n F u n d " m e a n s t h e F u n d b y t h a t n a m e c r e a t e d p u r s u a n t t o S e c t i o n
5 . 1 8 .
" R e p a i r a n d R e h a b i l i t a t i o n F u n d " m e a n s t h e F u n d b y t h a t n a m e c r e a t e d
p u r s u a n t t o S e c t i o n 5 . 0 2 .
" R e p a i r a n d R e h a b i l i t a t i o n F u n d P e r m i t t e d E x p e n d i t u r e s " m e a n s c a p i t a l
e x p e n d i t u r e s r e a s o n a b l y n e c e s s a r y t o r e p a i r o r r e h a b i l i t a t e t h e R i v e r s i d 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 s o t h a t i t r e m a i n s i n a c o n d i t i o n t h a t m e e t s t h e p e r f o r m a n c e a n d
O H S U S A : 2 6 0 9 3 5 7 0 9 . 9 2 3
1 3 7
maintenance standards established by Caltrans for existing State-operated transportation facilities •
of substantially equivalent size, location and character.
"Repair and Rehabilitation Fund Required Deposit" means the amounts
determined by the Commission on the date of issuance of the Bonds that are scheduled to be
deposited in each Fiscal Year into the Repair and Rehabilitation Fund pursuant to the Scheduled
Repair and Rehabilitation Fund Required Deposit set forth as Exhibit[_] [hereto] [to the TIFIA
Loan Agreement] to adequately provide for Repair and Rehabilitation Permitted Expenditures in
a timely manner, including reasonable reserves therefor.
"Representation Letter" means the letter or letters of representation from the
Commission to, or other instrument or agreement with, a Securities Depository for Book-Entry
Obligations, in which the Commission, among other things, makes certain representations to the
Securities Depository with respect to the Book-Entry Obligations, the payment thereof and
delivery of notices with respect thereto.
"Reserve Facility" means a letter of credit, surety bond or insurance policy
issued to the Trustee by a bank or company licensed to issue a surety bond or insurance policy
guaranteeing the timely payment of the principal of and interest on the Obligations supported by
the Reserve Facility.
"Reserve Facility Costs" means amounts owed with respect to repayment of
draws on a Reserve Facility, including interest thereon at the rate specified in the agreement
pertaining to such Reserve Facility and expenses owed to the Reserve Facility Provider in
connection with such Reserve Facility.
"Reserve Facility Provider" means any provider of a Reserve Facility, any
successor thereto or any replacement therefor.
"Residual Fund" means the Fund by that name created pursuant to Section 5.02.
"Revenue" means: (i) Toll Revenues; (ii) all interest or other income from
investment of money in the Funds and Accounts established hereunder (excluding the Rebate
Fund and any Fund or Account established to hold the proceeds of a drawing on any Credit
Support Instrument); and (iii) all Swap Revenues.
"Riverside SR-91 Corridor Improvement Project" means the planning, design,
development, financing, construction, reconstruction, rehabilitation, improvement, acquisition,
lease, operation, or maintenance, or any combination of these, with respect to tolled and non-
tolled facilities, structures, on-ramps, connector roads, bridges, and roadways that are on,
necessary for, or related to the construction or operation of that portion of the SR-91 between the
Orange and Riverside County line to the west and Interstate 15 to the east.
"ROW Revenues" means revenues generated by the Commission from the sale
of excess right-of-way property.
OHSUSA:260935709.9 24
138
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" R u l e 1 5 c 2 - 1 2 " m e a n s S e c u r i t i e s a n d E x c h a n g e C o m m i s s i o n R u l e 1 5 c 2 - 1 2 ,
a d o p t e d b y t h e S e c u r i t i e s a n d E x c h a n g e C o m m i s s i o n u n d e r t h e S e c u r i t i e s E x c h a n g e A c t o f 1 9 3 4 ,
a s t h e s a m e m a y b e a m e n d e d f r o m t i m e t o t i m e .
" S & P " m e a n 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 , a d i v i s i o n o f 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 , a s u b s i d i a r y o f T h e M c G r a w - H i l l C o m p a n i e s , a n d i t s s u c c e s s o r s
a n d a s s i g n s , e x c e p t t h a t i f s u c h c o r p o r a t i o n s h a l l b e d i s s o l v e d o r l i q u i d a t e d o r s h a l l n o l o n g e r
p e r f o r m t h e f u n c t i o n s o f a s e c u r i t i e s r a t i n g a g e n c y , t h e t e r m " S & P " s h a l l b e d e e m e d t o r e f e r t o
a n y o t h e r n a t i o n a l l y r e c o g n i z e d s t a t i s t i c a l r a t i n g o r g a n i z a t i o n s e l e c t e d b y t h e C o m m i s s i o n .
" S a l e s T a x A c t " m e a n s t h e R i v e r s i d e C o u n t y T r a n s p o r t a t i o n S a l e s T a x A c t , 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 . ) .
" S a l e s T a x E l i g i b l e P r o j e c t C o s t s " m e a n s P r o j e c t C o s t s t h a t a r e p e r m i t t e d t o b e
p a i d f r o m S a l e s T a x R e v e n u e s o r t h e p r o c e e d s o f t h e 2 0 1 3 S a l e s T a x R e v e n u e B o n d s i n
a c c o r d a n c e w i t h t h e p r o v i s i o n s o f t h e S a l e s T a x A c t , t h e O r d i n a n c e , a n d t h e S a l e s T a x R e v e n u e
B o n d I n d e n t u r e , i f a p p l i c a b l e .
" S a l e s T a x R e v e n u e B o n d I n d e n t u r e " m e a n s t h a t c e r t a i 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 , 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 a n d b e t w e e n t h e C o m m i s s i o n a n d U . S . B a n k
N a t i o n a l A s s o c i a t i o n , a s t r u s t e e .
" S a l e s T a x R e v e n u e s " m e a n s t h e a m o u n t s a v a i l a b l e f o r d i s t r i b u t i o n t o t h e
C o m m i s s i o n o n a n d a f t e r J u l y 1 , 2 0 0 9 o n a c c o u n t o f t h e r e t a i l t r a n s a c t i o n s a n d u s e t a x i m p o s e d
i n t h e C o u n t y o f R i v e r s i d e p u r s u a n t t o t h e S a l e s T a x A c t a n d t h e O r d i n a n c e a f t e r d e d u c t i n g
a m o u n t s p a y a b l e b y t h e C o m m i s s i o n t o t h e S t a t e B o a r d o f E q u a l i z a t i o n f o r c o s t s a n d e x p e n s e s
f o r i t s s e r v i c e s i n c o n n e c t i o n w i t h t h e r e t a i l t r a n s a c t i o n s a n d u s e t a x e s c o l l e c t e d p u r s u a n t t o t h e
S a l e s T a x A c t .
" S e c u r e d C r e d i t o r s " m e a n s , c o l l e c t i v e l y , ( i ) t h e T r u s t e e o n b e h a l f o f t h e
B o n d o w n e r s , ( i i ) a n y S w a p P a r t y , ( i i i ) a n y t r u s t e e , h o l d e r o r c r e d i t o r o f a n y P a r i t y O b l i g a t i o n s ,
( i v ) a n y t r u s t e e , h o l d e r o r c r e d i t o r o f a n y P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s , a n d ( v ) a n y t r u s t e e ,
h o l d e r o r c r e d i t o r o f a n y S u b o r d i n a t e O b l i g a t i o n s .
" S e c u r i t i e s D e p o s i t o r y " m e a n s D T C o r a n y o t h e r t r u s t c o m p a n y o r o t h e r e n t i t y
t h a t p r o v i d e s a b o o k - e n t r y s y s t e m f o r t h e r e g i s t r a t i o n o f o w n e r s h i p i n t e r e s t s i n s e c u r i t i e s a n d
w h i c h i s a c t i n g a s s e c u r i t y d e p o s i t o r y f o r B o o k - E n t r y O b l i g a t i o n s .
" S e n i o r L i e n B o n d F u n d " m e a n s t h e F u n d b y t h a t n a m e c r e a t e d p u r s u a n t t o
S e c t i o n 5 . 0 2 .
" S e n i o r L i e n B o n d I n t e r e s t P a y m e n t A c c o u n t " m e a n s t h e A c c o u n t b y t h a t
n a m e c r e a t e d w i t h i n t h e S e n i o r L i e n B o n d F u n d p u r s u a n t t o S e c t i o n 5 . 0 2 .
" S e n i o r L i e n B o n d P r i n c i p a l P a y m e n t A c c o u n t " m e a n s t h e A c c o u n t b y t h a t
n a m e c r e a t e d w i t h i n t h e S e n i o r L i e n B o n d F u n d p u r s u a n t t o S e c t i o n 5 . 0 2 .
O H S U S A : 2 6 0 9 3 5 7 0 9 . 9 2 5
1 3 9
"Senior Lien Bond Reserve Fund" means the Fund by that name created •
pursuant to Section 5.02.
"Senior Lien Bond Reserve Requirement" for any Senior Lien Bonds means, as
of any date of calculation, the amount specified by a Supplemental Indenture as the amount
required to be held in the Reserve Fund for the payment of principal of and interest on those
Senior Lien Bonds.
"Senior Lien Bonds" means the bonds or commercial paper identified as the
Riverside County Transportation Commission Toll Revenue Bonds authorized by, issued in
accordance with, and at any time Outstanding pursuant to, this Indenture.
"Senior Lien Bonds Account" means the Account by that name created within
the Project Fund pursuant to Section 5.02.
"Series" means all Obligations identified in the Indenture or any Supplemental
Indenture as a separate Series.
"Short-Term Put Obligation" means an Obligation with a stated maturity often
years or less, the principal of which the Commission determines on or before the date of issuance
that it intends to pay from remarketing proceeds or proceeds of refunding obligations.
"SIFMA Index" means Securities Industry and Financial Markets Association
Municipal Swap Index as of the most recent date such index was published by the Securities
Industry and Financial Markets Association or any successor thereto, or in the event such index •
is no longer published by the Securities Industry and Financial Markets Association or any
successor thereto, such comparable replacement index as shall be published by the Securities
Industry and Financial Markets Association or any successor thereto. In the event that such
comparable replacement index is no longer published by the Securities Industry and Financial
Markets Association or any successor thereto, an alternative index shall be selected by the
Commission.
"Sinking Fund Installment" means, with respect to any Series of Obligations,
each amount so designated for the Term Bonds of such Series in the Supplemental Indenture
providing for the issuance of such Series of Obligations requiring payments by the Commission
to be applied to the retirement of such Series of Obligations on and prior to the stated maturity
date thereof.
"Special Project" shall mean any project which is so designated by the
Commission in a resolution of the Board a copy of which is delivered to the Trustee.
"SR-91" means State Highway Route 91.
"State" means the State of California.
"Subordinate Obligations" means any Obligations that are subordinated in right
of payment and lien priority to the Senior Lien Bonds and Parity Obligations and the Permitted •
Second Lien Obligations.
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" S u b o r d i n a t e O b l i g a t i o n s A c c o u n t " m e a n s t h e A c c o u n t b y t h a t n a m e c r e a t e d
w i t h i n t h e P r o j e c t F u n d p u r s u a n t t o S e c t i o n 5 . 0 2 .
" S u b o r d i n a t e O b l i g a t i o n s P a y m e n t F u n d " m e a n s t h e F u n d b y t h a t n a m e
c r e a t e d p u r s u a n t t o S e c t i o n 5 . 0 2 .
" S u b o r d i n a t e O b l i g a t i o n s R e p a y m e n t A c c o u n t " m e a n s t h e A c c o u n t b y t h a t
n a m e c r e a t e d p u r s u a n t t o S e c t i o n 5 . 0 2 .
" S u b o r d i n a t e O b l i g a t i o n s R e s e r v e F u n d " m e a n s t h e F u n d b y t h a t n a m e c r e a t e d
p u r s u a n t t o S e c t i o n 5 . 0 2 .
" S u b o r d i n a t e O b l i g a t i o n s R e s e r v e F u n d R e q u i r e d B a l a n c e " s h a l l h a v e t h e
m e a n i n g a s s i g n e d t o t h a t t e r m i n a S u p p l e m e n t a l I n d e n t u r e p u r s u a n t t o w h i c h S u b o r d i n a t e
O b l i g a t i o n s a r e i n c u r r e d .
" S u b s i d y P a y m e n t s " m e a n s , ( a ) w i t h r e s p e c t t o a S e r i e s o f O b l i g a t i o n s i s s u e d
u n d e r S e c t i o n 5 4 A A o f t h e C o d e , t h e a m o u n t s r e l a t i n g t o s u c h S e r i e s o f O b l i g a t i o n s w h i c h a r e
p a y a b l e b y t h e F e d e r a l g o v e r n m e n t u n d e r S e c t i o n 6 4 3 1 o f t h e C o d e , w h i c h t h e C o m m i s s i o n h a s
e l e c t e d t o r e c e i v e u n d e r S e c t i o n 5 4 A A ( g ) ( l ) o f t h e C o d e , a n d ( b ) w i t h r e s p e c t t o a S e r i e s o f
O b l i g a t i o n s i s s u e d u n d e r a n y o t h e r p r o v i s i o n o f t h e C o d e t h a t c r e a t e s a s u b s t a n t i a l l y s i m i l a r
d i r e c t - p a y s u b s i d y p r o g r a m , t h e a m o u n t s r e l a t i n g t o s u c h S e r i e s o f O b l i g a t i o n s w h i c h a r e p a y a b l e
b y t h e F e d e r a l g o v e r n m e n t u n d e r t h e a p p l i c a b l e p r o v i s i o n o f t h e C o d e w h i c h t h e C o m m i s s i o n
h a s e l e c t e d t o r e c e i v e u n d e r t h e a p p l i c a b l e p r o v i s i o n s o f t h e C o d e .
" S u b s t a n t i a l C o m p l e t i o n D a t e " m e a n s t h e d a t e o n w h i c h t h e T o l l R o a d p o r t i o n
o f t h e R i v e r s i d 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 o p e n s f o r p u b l i c u s e a n d t o l l o p e r a t i o n s .
" S u p p l e m e n t a l I n d e n t u r e " m e a n s a n y i n d e n t u r 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 a n d t h e T r u s t e e i n a c c o r d a n c e w i t h t h i s I n d e n t u r e t h a t i s s t a t e d t o b e a s u p p l e m e n t a l
i n d e n t u r e h e r e t o .
" S u r p l u s F u n d " m e a n s t h e F u n d b y t h a t n a m e c r e a t e d p u r s u a n t t o S e c t i o n 5 . 0 2 .
" S w a p " m e a n s a n y 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 , c u r r e n c y s w a p a g r e e m e n t ,
f o r w a r d p a y m e n t c o n v e r s i o n a g r e e m e n t o r f u t u r e s c o n t r a c t , a n y c o n t r a c t p r o v i d i n g f o r p a y m e n t s
b a s e d o n l e v e l s o f , o r c h a n g e s i n , i n t e r e s t r a t e s , c u r r e n c y e x c h a n g e r a t e s , s t o c k o r o t h e r i n d i c e s ,
a n y c o n t r a c t t o e x c h a n g e c a s h f l o w s o r a s e r i e s o f p a y m e n t s , o r a n y c o n t r a c t , 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 i n t e r e s t r a t e f l o o r o r c a p , o r a n o p t i o n , p u t o r c a l l , t o h e d g e p a y m e n t , c u r r e n c y , r a t e ,
s p r e a d o r s i m i l a r e x p o s 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 a S w a p P a r t y , w h i c h i s n o t a Q u a l i f i e d
S w a p A g r e e m e n t .
" S w a p P a r t y " m e a n s e a c h e n t i t y t h a t i s a p a r t y t o e i t h e r a Q u a l i f i e d S w a p
A g r e e m e n t o r a S w a p e n t e r e d i n t o w i t h t h e C o m m i s s i o n .
" S w a p R e v e n u e s " m e a n s a n y a m o u n t p a i d b y a S w a p P a r t y t o t h e C o m m i s s i o n
p u r s u a n t t o a n y Q u a l i f i e d S w a p A g r e e m e n t o r S w a p , a f t e r a n y n e t t i n g o f p a y m e n t s r e q u i r e d b y
s u c h Q u a l i f i e d S w a p A g r e e m e n t o r S w a p , a s a p p l i c a b l e , a n d a n y p a y m e n t s p a i d t o t h e
O H S U S A : 2 6 0 9 3 5 7 0 9 . 9 2 7
1 4 1
Commission by a Swap Party as consideration for termination or amendment of a Qualified •
Swap Agreement or Swap, as applicable.
"Tax Certificate" means the Tax Certificate delivered by the Commission at the
time of the issuance of a Series of Obligations, as the same may be amended and supplemented
in accordance with its terms.
"Term Bonds" means Obligations of any Series that are payable on or before
their specified maturity dates from Sinking Fund Installments established for that purpose in the
Supplemental Indenture providing for the issuance of such Series of Obligations, which Sinking
Fund Installments are calculated to retire such Obligations on or before their specified maturity
dates.
"Threshold Rating" means a long term rating of either A3 or A-(or their
equivalents) or higher or a short term rating of either P-2 or A-2 (or their equivalents) or higher
from Moody's or Standard & Poor's, respectively.
"TIFIA Lender" means the United States Department· of Transportation, acting
by and through the Federal Highway Administrator, for the purpose of making one or more
TIFIA Loans to the Commission, or another .
"TIFIA Loan" means each loan made to the Commission by TIFIA Lender
pursuant to a TIFIA Loan Agreement.
"TIFIA Loan Agreement" means a loan agreement by and between the •
Commission and the TIFIA Lender and any amendments or supplements thereto permitted
hereby and thereby.
"TIFIA Mandatory Debt Service" means the portion of the TIFIA Loan which
is unconditionally required to be paid in accordance with, and pursuant to, the terms of the TIFIA
Loan Agreement, as of the date of calculation of TIFIA Mandatory Debt Service (assuming, for
purposes of projected debt service, that the full amount of the TIFIA Loan will be disbursed).
"TIFIA Payment Date" has the meaning specified for the term "Payment Date"
(or any similar term) in the TIFIA Loan Agreement.
"TIFIA Scheduled Debt Service" means, with respect to any TIFIA Payment
Date occurring on or after the Debt Service Payment Commencement Date (as defined in the
applicable TIFIA Loan Agreement), the total debt service to be made on such TIFIA Payment
Date with respect to the applicable TIFIA Loan.
"Toll Agreements" means the OCTA Cooperative Agreement, the Operating
Agreement, the Design-Build Contract, the Caltrans DB Cooperative Agreement and the Toll
Facility Agreement, and any amendments or supplements thereto permitted thereby and hereby.
"Toll Facility Agreement" means that certain Toll Facility Agreement, dated as
of May 14, 2012, by and between the Commission and Caltrans relating to the Commission's •
leasehold rights to Caltrans SR-91 right-of-way in Riverside County and Caltrans' role in
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o v e r s i g h t o f t h e P r o j e c t , a n d a n y a m e n d m e n t s o r s u p p l e m e n t s t h e r e t o p e r m i t t e d t h e r e b y a n d
h e r e b y .
" T o l l O p e r a t o r " m e a n s C o f i r o u t e , o r a n y s u c c e s s o r , a s o p e r a t o r o f t h e T o l l R o a d
r e s p o n s i b l e f o r t h e c o l l e c t i o n o f t o l l s a n d f e e s a n d t h e e s t a b l i s h m e n t a n d m a i n t e n a n c e o f
c u s t o m e r a c c o u n t s a n d r e c o r d s , p u r s u a n t t o t h e O p e r a t i n g A g r e e m e n t .
" T o l l R e v e n u e F u n d " m e a n s t h e F u n d b y t h a t n a m e c r e a t e d p u r s u a n t t o S e c t i o n
5 . 0 1 .
" T o l l R e v e n u e s " m e a n s ( i ) t o l l r e v e n u e s , u s e r f e e s , f i n e s , r e n t s o r o t h e r s i m i l a r
c h a r g e s p a y a b l e f o r u s e o f t h e T o l l R o a d , a s w e l l a s f i n e s a n d p e n a l t i e s a n d i n t e r e s t t h e r e o n
c o l l e c t e d a s a r e s u l t o f a f a i l u r e t o p a y a n y s u c h a m o u n t s , ( i i ) p r o c e e d s o f i n s u r a n c e p a y a b l e t o o r
r e c e i v e d b y 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 T o l l R o a d ( w h e t h e r b y w a y o f c l a i m s , r e t u r n o f
p r e m i u m s , e x g r a t i a s e t t l e m e n t s o r o t h e r w i s e ) , i n c l u d i n g p r o c e e d s f r o m b u s i n e s s i n t e r r u p t i o n
i n s u r a n c e a n d l o s s o f a d v a n c e p r o f i t s i n s u r a n c e , e x c e p t f o r p r o c e e d s o f f i r e a n d o t h e r c a s u a l t y
i n s u r a n c e t h a t a r e a c t u a l l y a p p l i e d o r r e s e r v e d f o r a p p l i c a t i o n t o t h e r e p a i r , r e s t o r a t i o n o r
r e p l a c e m e n t o f t h e T o l l R o a d , ( i i i ) p r o c e e d s o f a n y c o n d e m n a t i o n a w a r d s w i t h r e s p e c t t o t h e T o l l
R o a d , e x c e p t t o t h e e x t e n t a c t u a l l y a p p l i e d o r r e s e r v e d f o r a p p l i c a t i o n t o t h e r e p l a c e m e n t o f t h e
T o l l R o a d , ( i v ) l i q u i d a t e d d a m a g e s f o r d e l a y e d c o m p l e t i o n p a y a b l e t o t h e C o m m i s s i o n u n d e r a
c o n s t r u c t i o n c o n t r a c t r e l a t i n g t o t h e T o l l R o a d o r a p o r t i o n t h e r e o f , e x c e p t f o r t h e p o r t i o n o f s u c h
l i q u i d a t e d d a m a g e s t h a t i s d e p o s i t e d t o t h e P r o j e c t F u n d o r a n A c c o u n t t h e r e i n a n d a p p l i e d o r
r e s e r v e d f o r p a y m e n t o f P r o j e c t C o s t s r e l a t i n g t o t h e T o l l R o a d o r s u c h p o r t i o n d u r i n g s u c h
p e r i o d o f d e l a y e d c o m p l e t i o n , ( v ) p r o c e e d s o f c r e d i t s u p p o r t p r o v i d e d b y t h e T o l l O p e r a t o r
p u r s u a n t t o t h e O p e r a t i n g A g r e e m e n t , a n d ( v i ) a n y o t h e r i n c i d e n t a l o r r e l a t e d f e e s o r c h a r g e s ; b u t
e x c l u d i n g t h e r e f r o m R O W R e v e n u e s a n d c a s h a d v a n c e s r e p r e s e n t i n g d e p o s i t s a g a i n s t f u t u r e t o l l
p a y m e n t s f r o m u s e r s o r p o t e n t i a l u s e r s o f t h e T o l l R o a d .
" T o l l R o a d " m e a n s a n y o f t h e f o l l o w i n g : ( a ) g e n e r a l p u r p o s e t o l l l a n e s , ( b ) l a n e s
o r f a c i l i t i e s w h e r e t h e t o l l s m a y b e l e v i e d a n d m a y v a r y a c c o r d i n g t o l e v e l s o f c o n g e s t i o n
a n t i c i p a t e d o r e x p e r i e n c e d o r a c c o r d i n g t o t h e o c c u p a n c y o f t h e v e h i c l e , ( c ) f a c i l i t i e s u s i n g a n y
c o m b i n a t i o n o f ( a ) a n d ( b ) , a n d ( d ) f a c i l i t i e s u s i n g a n y o t h e r . t o l l i n g s t r a t e g y t h e C o m m i s s i o n
m a y d e t e r m i n e a p p r o p r i a t e o n a f a c i l i t y - b y - f a c i l i t y b a s i s , u p o n w h i c h t h e C o m m i s s i o n h a s a l l
r i g h t , p o w e r a n d a u t h o r i t y p u r s u a n t t o l a w t o i m p o s e t o l l s , a s s u c h t o l l l a n e s a n d f a c i l i t i e s m a y
f r o m t i m e t o t i m e b e e x p a n d e d , i m p r o v e d , u p g r a d e d , e n l a r g e d , o r e n h a n c e d , b u t o n l y t o t h e
e x t e n t t h a t t h e C o m m i s s i o n i r r e v o c a b l y d e s i g n a t e s i n w r i t i n g t h a t s u c h t o l l l a n e s a n d f a c i l i t i e s ,
a n d a n y e x p a n s i o n , i m p r o v e m e n t , u p g r a d e , e n l a r g e m e n t o r e n h a n c e m e n t c o n s t i t u t e s a " T o l l
R o a d " g e n e r a t i n g T o l l R e v e n u e s " h e r e u n d e r . " T o l l R o a d " s h a l l n o t i n c l u d e a n y S p e c i a l P r o j e c t .
I n i t i a l l y , " T o l l R o a d " i n i t i a l l y m e a n s a n y s u c h t o l l l a n e s a n d f a c i l i t i e s ( i n c l u d i n g s t r u c t u r e s , o n -
r a m p s , c o n n e c t o r r o a d s , b r i d g e s , a n d r o a d w a y s t h a t a r e o n , n e c e s s a r y f o r , o r r e l a t e d t o t h e
c o n s t r u c t i o n o r o p e r a t i o n o f t h e T o l l R o a d ) o n t h e p o r t i o n o f S R - 9 1 b e t w e e n t h e O r a n g e a n d
R i v e r s i d e C o u n t y l i n e a n d I n t e r s t a t e 1 5 t h a t c o n s t i t u t e a p a r t o f t h e R i v e r s i d 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 r a f f i c C o n s u l t a n t " m e a n s a n y t r a f f i c a n d r e v e n u e c o n s u l t a n t o r f i r m o f
n a t i o n a l l y - r e c o g n i z e d t r a f f i c a n d r e v e n u e c o n s u l t a n t s e x p e r i e n c e d i n p e r f o r m i n g t h e d u t i e s f o r
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1 4 3
which a Traffic Consultant is required to be employed pursuant to the provisiOns of this •
Indenture selected by the Commission.
"Trust Estate" has the meaning specified in the Granting Clauses herein.
"2013 Sales Tax Revenue Bonds" means the Riverside County Transportation
Commission Sales Tax Revenue Bonds (Limited Tax Bonds), 2013 Series A.
"Written Engineer's Certificate" means an instrument in writing signed by a
Consulting Engineer stating that an Alternate Repair and Rehabilitation Fund Required Deposit
(as defined in clause Tenth of Section 5.03) is necessary to pay for Repair and Rehabilitation
Fund Permitted Expenditures for a Fiscal Year due to at least one of the following:
(i) reasonably unforeseen expenditures incurred to the extent necessary to respond to emergency
conditions; or (ii) reasonably unforeseen expenditures to the extent necessary to be made to
maintain the Riverside SR-91 Corridor Improvement Project in a state of good repair and in a
condition that meets the performance and maintenance standards established by Caltrans for
existing State-operated transportation facilities of substantially equivalent size, location and
character.
"Written Request of the Commission" means an instrument in writing signed by
an Authorized Representative.
ARTICLE II
THE OBLIGATIONS
Section 2.01 Authorization and Purposes. Obligations in the form of Senior
Lien Bonds, Parity Obligations, Permitted Second Lien Obligations or Subordinate Obligations
may be issued hereunder, in book-entry form or otherwise, from time to time as the issuance
thereof is approved by the Commission. The maximum Bond Obligation of Obligations that
may be issued hereunder is not limited; subject, however, to any limitations contained in the Act
and to the right of the Commission, which is hereby reserved, to limit the initial Bond Obligation
of Obligations that may be issued or Outstanding hereunder. The Senior Lien Bonds are
designated generally as "Riverside County Transportation Commission Toll Revenue Bonds,"
each Series thereof to bear such additional designation as may be necessary or appropriate to
distinguish such Series from every other Series of Senior Lien Bonds. The Permitted Second
Lien Obligations are designated generally as "Riverside County Transportation Commission
Second Lien Toll Revenue Bonds," each Series thereof to bear such additional designation as
may be necessary or appropriate to distinguish such Series from every other Series of Permitted
Second Lien Obligations. The Subordinate Obligations are designated generally as "Riverside
County Transportation Commission Subordinate Toll Revenue Bonds," each Series thereof to
bear such additional designation as may be necessary or appropriate to distinguish such Series
from every other Series of Subordinate Obligations. The Obligations may be issued in such
Series as from time to time shall be established and authorized by the Commission, subject to the
covenants, provisions and conditions herein. Each separate Series of Obligations shall be
authorized by the Commission in a Supplemental Indenture. No Obligations may be issued
under the provisions of this Indenture except in accordance with this Article and Article III.
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O b l i g a t i o n s m a y b e i s s u e d f o r t h e p u r p o s e o f f i n a n c i n g t h e R i v e r s i d 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 u s i n g a d e s i g n - b u i l d p r o c u r e m e n t p r o c e s s , o r f o r a n y o t h e r
p u r p o s e a u t h o r i z e d b y t h e A c t a n d t h i s I n d e n t u r e .
S e c t i o n 2 . 0 2 G e n e r a l T e r m s o f O b l i g a t i o n s . E a c h O b l i g a t i o n s h a l l b e s e c u r e d
h e r e b y a n d s h a l l b e a r i n t e r e s t a n d s h a l l b e p a y a b l e a n d b e a d d i t i o n a l l y s e c u r e d a n d h a v e s u c h
o t h e r t e r m s a s s h a l l b e s p e c i f i e d i n i t s S u p p l e m e n t a l I n d e n t u r e , o r i f n o t s p e c i f i e d t h e r e i n , a s
s p e c i f i 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 p u r s u a n t t o S e c t i o n 2 . 0 6 .
T h e p r i n c i p a l a n d P u r c h a s e P r i c e 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 o n t h e
O b l i g a t i o n s s h a l l b e p a y a b l e i n l a w f u l c u r r e n c y o f t h e U n i t e d S t a t e s o f A m e r i c a , e x c e p t a s
o t h e r w i s e s p e c i f i e d i n a S u p p l e m e n t a l I n d e n t u r e . D u r i n g a n y p e r i o d i n w h i c h a n y O b l i g a t i o n s
a r e B o o k - E n t r y O b l i g a t i o n s , p a y m e n t o f d e b t s e r v i c e o n s u c h B o o k - E n t r y O b l i g a t i o n s s h a l l b e
m a d e t o t h e S e c u r i t i e s D e p o s i t o r y , o r i t s N o m i n e e , a n d i n a c c o r d a n c e w i t h a r r a n g e m e n t s a m o n g
t h e C o m m i s s i o n , t h e T r u s t e e a n d t h e S e c u r i t i e s D e p o s i t o r y . D u r i n g a n y p e r i o d i n w h i c h a n y
O b l i g a t i o n s a r e n o t B o o k - E n t r y O b l i g a t i o n s , u n l e s s o t h e r w i s e s p e c i f i e d i n a S u p p l e m e n t a l
I n d e n t u r e , t h e p r i n c i p a l a n d P u r c h a s e P r i c e o f a n d p r e m i u m , i f a n y , o n a l l s u c h O b l i g a t i o n s s h a l l
b e p a y a b l e b y w i r e o r c h e c k a t t h e P r i n c i p a l O f f i c e o f t h e T r u s t e e u p o n t h e p r e s e n t a t i o n a n d
s u r r e n d e r o f s u c h O b l i g a t i o n s a s t h e s a m e b e c o m e d u e a n d p a y a b l e , a n d t h e i n t e r e s t o n s u c h
O b l i g a t i o n s s h a l l b e p a i d b y w i r e o r c h e c k d r a w n u p o n t h e T r u s t e e a n d m a i l e d o n t h e a p p l i c a b l e
i n t e r e s t p a y m e n t d a t e t o t h e p e r s o n s i n w h o s e n a m e s t h e O b l i g a t i o n s a r e r e g i s t e r e d o n t h e
r e g i s t r a t i o n b o o k s m a i n t a i n e d b y t h e T r u s t e e a t t h e c l o s e o f b u s i n e s s o n t h e r e c o r d d a t e f o r s u c h
i n t e r e s t p a y m e n t .
S e c t i o n 2 . 0 3 E x e c u t i o n . T h e O b l i g a t i o n s s h a l l b e e x e c u t e d i n t h e n a m e a n d o n
b e h a l f o f t h e C o m m i s s i o n b y t h e f a c s i m i l e o r m a n u a l s i g n a t u r e o f t h e C h a i r p e r s o n o f t h e B o a r d
o r a n y V i c e C h a i r p e r s o n o f t h e B o a r d a n d s h a l l b e c o u n t e r s i g n e d b y t h e f a c s i m i l e o r m a n u a l
s i g n a t u r e o f 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 , a n d s h a l l h a v e t h e o f f i c i a l s e a l o f t h e
C o m m i s s i o n a t t a c h e d o r a f f i x e d t h e r e o n i n m a n u a l o r f a c s i m i l e f o r m . U n l e s s o t h e r w i s e p r o v i d e d
i n a n y S u p p l e m e n t a l I n d e n t u r e , t h e O b l i g a t i o n s s h a l l t h e n b e d e l i v e r e d t o t h e T r u s t e e f o r
a u t h e n t i c a t i o n b y t h e T r u s t e e . I n c a s e a n y o f t h e o f f i c e r s w h o s h a l l h a v e s i g n e d o r a t t e s t e d a n y
o f t h e O b l i g a t i o n s s h a l l c e a s e t o b e s u c h o f f i c e r o r o f f i c e r s o f t h e C o m m i s s i o n b e f o r e t h e
O b l i g a t i o n s s o s i g n e d o r a t t e s t e d s h a l l h a v e b e e n a u t h e n t i c a t e d o r d e l i v e r e d b y t h e T r u s t e e o r
i s s u e d b y t h e C o m m i s s i o n , s u c h O b l i g a t i o n s m a y n e v e r t h e l e s s b e a u t h e n t i c a t e d , d e l i v e r e d a n d
i s s u e d a n d , u p o n s u c h a u t h e n t i c a t i o n , d e l i v e r y a n d i s s u e , s h a l l b e a s b i n d i n g u p o n t h e
C o m m i s s i o n a s t h o u g h t h o s e w h o s i g n e d a n d a t t e s t e d t h e s a m e h a d c o n t i n u e d t o b e s u c h o f f i c e r s
o f t h e C o m m i s s i o n , a n d a l s o a n y O b l i g a t i o n m a y b e s i g n e d a n d a t t e s t e d o n b e h a l f o f t h e
C o m m i s s i o n b y s u c h p e r s o n s a s a t t h e a c t u a l d a t e o f e x e c u t i o n o f s u c h O b l i g a t i o n s h a l l b e t h e
p r o p e r o f f i c e r s o f t h e C o m m i s s i o n a l t h o u g h a t t h e n o m i n a l d a t e o f s u c h O b l i g a t i o n a n y s u c h
p e r s o n s h a l l n o t h a v e b e e n s u c h o f f i c e r o f t h e C o m m i s s i o n .
S e c t i o n 2 . 0 4 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 . N o O b l i g a t i o n s s h a l l b e s e c u r e d
h e r e b y o r e n t i t l e d t o t h e b e n e f i t h e r e o f o r s h a l l b e o r b e c o m e v a l i d o r o b l i g a t o r y f o r a n y p u r p o s e
u n l e s s t h e r e s h a l l b e e n d o r s e d t h e r e o n a c e r t i f i c a t e o f a u t h e n t i c a t i o n , s u b s t a n t i a l l y i n t h e f o r m s e t
f o r t h i n t h e f o r m o f O b l i g a t i o n r e f e r r e d t o i n S e c t i o n 2 . 0 5 h e r e o f , e x e c u t e d b y t h e T r u s t e e ; a n d
s u c h c e r t i f i c a t e o n a n y O b l i g a t i o n i s s u e d b y t h e C o m m i s s i o 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 t h a t
s u c h O b l i g a t i o n h a s b e e n d u l y a u t h e n t i c a t e d a n d d e l i v e r e d h e r e u n d e r .
O H S U S A : 2 6 0 9 3 5 7 0 9 . 9 3 1
1 4 5
Section 2.05 Forms of Obligations. The Obligations, the Trustee's certificate
of authentication and the form of assignment shall be in substantially the forms specified in a •
Supplemental Indenture or if not specified therein, as specified by an Authorized Representative
pursuant to Section 2.06, and may have such letters, numbers or other marks of identification
(including, but not limited to, the Series designation provided for in Section 2.01) and such
legends and endorsements placed thereon as may be required to comply with any applicable laws
or rules or regulations, or as may, consistent herewith, be determined by an Authorized
Representative. The Obligations shall be in either typewritten or printed form, as an Authorized
Representative shall direct, provided that any expenses incurred in connection therewith shall be
paid by the Co111mission.
Section 2.06 Issuance, Sale and Delivery of Obligations; Application of
Proceeds. The Obligations of each Series shall be delivered by the Trustee in accordance with a
Written Request of the Commission, which may be Electronic, in the manner specified herein.
Said Written Request of the Commission shall specify the following terms for the Obligations
then being issued to the extent such terms are not set forth in the Supplemental Indenture
creating such Series of Obligations and are applicable to such Obligations: whether such
Obligation is a Senior Lien Bond, Parity Obligation, Permitted Second Lien Obligation or
Subordinate Obligation hereunder; Series designation; Authorized Denominations; form of such
Obligation; book-entry provisions, if any; maturity date or dates or maturity determination
method, which may vary for Obligations within such Series; principal amount; issue date;
interest rate or interest rate determination method, which may vary for Obligations within such
Series; record date for interest payments; sinking fund provisions, if any; required reserves, if
any; redemption provisions, if any; tender provisions, if any; additional security, if any; and any •
other terms and conditions that are not inconsistent with this Indenture. Upon the delivery of
each Series of Obligations, the proceeds shall immediately be applied and deposited as set forth
in the applicable Supplemental Indenture.
. Section 2.07 Mutilated, Lost, Stolen or Destroyed Obligations. If any
Obligation is mutilated, lost, stolen or destroyed, the Commission shall execute and the Trustee
shall authenticate and deliver a new Obligation of the same Series, maturity date, principal
amount and tenor in lieu of and in substitution for the Obligation mutilated, lost, stolen or
destroyed; provided that there shall be first furnished to the Trustee evidence satisfactory to the
Trustee of the ownership of such Obligation and of such loss, theft or destruction (or, in the case
of a mutilated Obligation, such mutilated Obligation shall first be surrendered to the Trustee),
together with indemnity satisfactory to the Trustee and compliance with such other reasonable
regulations as the Commission and Trustee may prescribe. Subject to the proviso set forth in the
preceding sentence, if any such Obligation shall have matured or a redemption date pertaining
thereto shall have passed, instead of issuing a new Obligation, the Commission may pay the
same without surrender thereof. The Commission and the Trustee may charge the Holder of
such Obligation with their reasonable ' in this connection.
Section 2.08 Exchangeability and Transfer of Obligations; Persons Treated
as Holders. The Commission hereby directs the Trustee, which is hereby constituted and
appointed the bond registrar for the Obligations, to keep books for the registration of the
Obligations and for the registration of transfer of the Obligations as provided herein.
OHS USA:260935 709.9 32
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A n y r e g i s t e r e d o w n e r o f a O b l i g a t i o n , i n p e r s o n o r b y i t s d u l y a u t h o r i z e d a t t o r n e y ,
m a y t r a n s f e r t i t l e t o i t s O b l i g a t i o n o n t h e b o o k s o f r e g i s t r a t i o n k e p t b y t h e T r u s t e e , u p o n
s u r r e n d e r t h e r e o f a t t h e P r i n c i p a l O f f i c e o f t h e T r u s t e e , t o g e t h e r w i t h a w r i t t e n i n s t r u m e n t o f
t r a n s f e r ( i n s u b s t a n t i a l l y t h e f o r m o f a s s i g n m e n t a t t a c h e d t o t h e O b l i g a t i o n o r a s p r o v i d e d i n i t s
S u p p l e m e n t a l I n d e n t u r e ) e x e c u t e d b y t h e r e g i s t e r e d o w n e r o r i t s d u l y a u t h o r i z e d a t t o r n e y , a n d
u p o n s u r r e n d e r 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 o f a n y O b l i g a t i o n , t h e C o m m i s s i o n s h a l l e x e c u t e , a n d
t h e T r u s t e e s h a l l a u t h e n t i c a t e a n d d e l i v e r i n t h e n a m e o f t h e t r a n s f e r e e o r t r a n s f e r e e s , a n e w
O b l i g a t i o n o r O b l i g a t i o n s o f t h e s a m e S e r i e s , m a t u r i t y d a t e , B o n d O b l i g a t i o n a n d t e n o r a s t h e
O b l i g a t i o n s u r r e n d e r e d .
O b l i g a t i o n s m a y b e e x c h a n g e d u p o n s u r r e n d e r t h e r e o f a t t h e P r i n c i p a l O f f i c e o f
t h e T r u s t e e f o r O b l i g a t i o n s o f t h e s a m e S e r i e s , m a t u r i t y d a t e , B o n d O b l i g a t i o n a n d t e n o r a s t h e
O b l i g a t i o n s b e i n g e x c h a n g e d . T h e C o m m i s s i o n s h a l l e x e c u t e a n d t h e T r u s t e e s h a l l a u t h e n t i c a t e
a n d d e l i v e r O b l i g a t i o n s t h a t t h e r e g i s t e r e d o w n e r m a k i n g t h e e x c h a n g e i s e n t i t l e d t o r e c e i v e ,
b e a r i n g n u m b e r s n o t c o n t e m p o r a n e o u s l y t h e n o u t s t a n d i n g .
S u c h r e g i s t r a t i o n s o f t r a n s f e r s o r e x c h a n g e s o f O b l i g a t i o n s s h a l l b e w i t h o u t
c h a r g e t o t h e r e g i s t e r e d o w n e r o f s u c h O b l i g a t i o n s , b u t a n y t a x e s o r o t h e r g o v e r n m e n t a l c h a r g e s
r e q u i r e d t o b e p a i d w i t h r e s p e c t t o t h e s a m e s h a l l b e p a i d b y t h e r e g i s t e r e d o w n e r o f t h e
O b l i g a t i o n r e q u e s t i n g s u c h r e g i s t r a t i o n o f t r a n s f e r o r e x c h a n g e a s a c o n d i t i o n p r e c e d e n t t o t h e
e x e r c i s e o f s u c h p r i v i l e g e . A n y s e r v i c e c h a r g e m a d e b y t h e T r u s t e e f o r a n y s u c h r e g i s t r a t i o n ,
t r a n s f e r o r e x c h a n g e s h a l l b e p a i d b y t h e C o m m i s s i o n .
T h e T r u s t e e s h a l l n o t r e g i s t e r a n y t r a n s f e r o f a n y O b l i g a t i o n a f t e r n o t i c e c a l l i n g
s u c h O b l i g a t i o n ( o r p o r t i o n t h e r e o f ) f o r r e d e m p t i o n o r p a r t i a l r e d e m p t i o n o r n o t i c e o f m a n d a t o r y
t e n d e r w i t h r e s p e c t t h e r e t o h a s b e e n g i v e n a n d p r i o r t o s u c h r e d e m p t i o n o r m a n d a t o r y t e n d e r , a s
t h e c a s e m a y b e , e x c e p t , i n t h e c a s e o f a n y O b l i g a t i o n t o b e r e d e e m e d i n p a r t , t h e p o r t i o n t h e r e o f
n o t t o b e r e d e e m e d .
T h e p e r s o n i n w h o s e n a m e a n y O b l i g a t i o n s h a l l b e r e g i s t e r e d s h a l l b e d e e m e d a n d
r e g a r d e d a s t h e a b s o l u t e o w n e r t h e r e o f f o r a l l p u r p o s e s , a n d p a y m e n t o f o r o n a c c o u n t o f e i t h e r
p r i n c i p a l , p r e m i u m , i f a n y , o r i n t e r e s t s h a l l b e m a d e o n l y t o o r u p o n t h e o r d e r o f t h e r e g i s t e r e d
o w n e r t h e r e o f o r h i s d u l y a u t h o r i z e d a t t o r n e y , b u t s u c h r e g i s t r a t i o n m a y b e c h a n g e d a s
h e r e i n a b o v e p r o v i d e d . A l l s u c h p a y m e n t s s h a l l b e v a l i d a n d e f f e c t u a l t o s a t i s f y a n d d i s c h a r g e
t h e l i a b i l i t y u p o n s u c h O b l i g a t i o n t o t h e e x t e n t o f t h e s u m o r s u m s s o p a i d .
A l l O b l i g a t i o n s i s s u e d u p o n a n y t r a n s f e r o r e x c h a n g e o f O b l i g a t i o n s s h a l l b 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 v i d e n c i n g t h e s a m e d e b t , a n d e n t i t l e d t o
t h e s a m e s e c u r i t y a n d b e n e f i t s u n d e r t h i s I n d e n t u r e , a s t h e O b l i g a t i o n s s u r r e n d e r e d u p o n s u c h
t r a n s f e r o r e x c h a n g e .
S e c t i o n 2 . 0 9 C a n c e l l a t i o n . A l l O b l i g a t i o n s t h a t h a v e b e e n s u r r e n d e r e d t o t h e
T r u s t e e p u r s u a n t t o S e c t i o n 2 . 0 7 o r 2 . 0 8 o f t h i s I n d e n t u r e a n d a l l O b l i g a t i o n s t h a t h a v e b e e n p a i d
o r r e d e e m e d , e i t h e r a t o r p r i o r t o m a t u r i t y , e x c e p t a s o t h e r w i s e p r o v i d e d i n a 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 b e c a n c e l l e d a n d d e s t r o y e d b y t h e T r u s t e e a n d a c e r t i f i c a t e o f d e s t r u c t i o n s h a l l b e
d e l i v e r e d t o t h e C o m m i s s i o n .
O H S U S A : 2 6 0 9 3 5 7 0 9 . 9 3 3
1 4 7
Section 2.10 Obligations Ratably Secured. All Obligations issued hereunder
that by their terms are stated to be equally and ratably secured by this Indenture without •
preference, priority or distinction on account of the Series or the actual time or times of the
authentication, delivery or maturity of such Obligations shall be so equally and ratably secured
so that, subject to any differences specified in this Indenture, all such Obligations at any time
Outstanding hereunder shall have the same right, lien and preference under and by virtue of this
Indenture and shall all be equally and ratably secured hereby with like effect as if they were of
the same Series and they had all been executed, authenticated and delivered simultaneously on
the date hereof, whether the same, or any of them, shall actually be disposed of at such date, or
whether they, or any of them, shall be disposed of at some future date.
Section 2.11 Book-Entry Only System. Unless an Authorized Representative
shall otherwise direct or unless otherwise specified in a Supplemental Indenture, all Obligations
issued hereunder shall be issued as Book-Entry Obligations in fully registered form. Book-Entry
Obligations shall be registered in the name of the Securities Depository or its Nominee as
directed by such Securities Depository. DTC shall act as the initial Securities Depository and
has designated Cede & Co. as its Nominee. Beneficial Owners of Obligations will not receive
physical delivery of bond certificates except as provided hereinafter. For so long as DTC shall
continue to serve as Securities Depository for the Obligations as provided herein, all transfers of
beneficial ownership interests will be made by book-entry only, and no person purchasing,
selling or otherwise transferring beneficial ownership of Obligations is to receive, hold or deliver
any Obligation certificate.
With respect to Obligations registered in the name of Cede & Co., as Nominee of •
DTC, the Commission and the Trustee shall have no responsibility or obligation to any
participant in DTC (each, a "DTC Participant") or to any person on whose behalf a DTC
Participant holds an interest in the Obligations. Without limiting the immediately preceding
sentence, the Commission and the Trustee shall have no responsibility or obligation with respect
to (i) the accuracy of the records of DTC, Cede & Co. or any DTC Participant with respect to
any ownership interest in the Obligations, (ii) the delivery to any DTC Participant or any other
person, other than a registered owner of the Obligations, as shown on the registration books, of
any notice with respect to the Obligations, including any notice of redemption or mandatory
tender, or (iii) the payment to any DTC Participant or any other person, other than a registered
owner of the Obligations, as shown in the registration books, of any amount with respect to
principal or Purchase Price of, or premium, if any, or interest on, the Obligations.
Replacement Obligations may be issued directly to Beneficial Owners of
Obligations other than DTC, or its Nominee, but only in the event that: (i) DTC determines not
to continue to act as Securities Depository for the Obligations (which determination shall
become effective no less than 90 days after written notice to such effect to the Commission and
the Trustee); or (ii) an Authorized Representative has advised DTC of its determination (which
determination is conclusive as to DTC and Beneficial Owners of the Obligations) that DTC is
incapable of discharging its duties as Securities Depository for the Obligations; or (iii) the
Commission has determined (which determination is conclusive as to DTC and the Beneficial
Owners of the Obligations) that the interests of the Beneficial Owners of the Obligations might
be adversely affected if such book-entry only system of registration and transfer is continued. •
Upon occurrence of any of the foregoing events, the Commission shall use its best efforts to
OHSUSA:260935709.9 34
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a t t e m p t t o l o c a t e a n o t h e r q u a l i f i e d S e c u r i t i e s D e p o s i t o r y . I f t h e C o m m i s s i o n f a i l s t o l o c a t e
a n o t h e r q u a l i f i e d S e c u r i t i e s D e p o s i t o r y t o r e p l a c e D T C , t h e C o m m i s s i o n s h a l l c a u s e t o b e
a u t h e n t i c a t e d a n d d e l i v e r e d r e p l a c e m e n t O b l i g a t i o n s , i n c e r t i f i c a t e f o r m , t o t h e B e n e f i c i a l
O w n e r s o f t h e O b l i g a t i o n s . I n t h e e v e n t t h a t t h e C o m m i s s i o n m a k e s t h e d e t e r m i n a t i o n n o t e d i n
( i i ) o r ( i i i ) a b o v e ( p r o v i d e d t h a t t h e C o m m i s s i o n u n d e r t a k e s n o o b l i g a t i o n t o m a k e a n y
i n v e s t i g a t i o n t o d e t e r m i n e t h e o c c u r r e n c e o f a n y e v e n t s t h a t w o u l d p e r m i t t h e C o m m i s s i o n t o
m a k e a n y s u c h d e t e r m i n a t i o n ) , a n d h a s m a d e p r o v i s i o n s t o n o t i f y t h e B e n e f i c i a l O w n e r s o f
O b l i g a t i o n s o f s u c h d e t e r m i n a t i o n b y m a i l i n g a n a p p r o p r i a t e n o t i c e t o D T C a n d i t s N o m i n e e , t h e
C o m m i s s i o n s h a l l c a u s e t o b e i s s u e d r e p l a c e m e n t O b l i g a t i o n s i n c e r t i f i c a t e f o r m t o B e n e f i c i a l
O w n e r s o f t h e O b l i g a t i o n s a s s h o w n o n t h e r e c o r d s o f D T C p r o v i d e d t o t h e C o m m i s s i o n .
W h e n e v e r , d u r i n g t h e t e r m o f t h e O b l i g a t i o n s , t h e B e n e f i c i a l O w n e r s h i p t h e r e o f i s
d e t e r m i n e d b y b o o k - e n t r y a t D T C , ( i ) t h e r e q u i r e m e n t s i n t h i s I n d e n t u r e o f h o l d i n g , d e l i v e r i n g o r
t r a n s f e r r i n g O b l i g a t i o n s s h a l l b e d e e m e d m o d i f i e d t o r e q u i r e t h e a p p r o p r i a t e p e r s o n o r e n t i t y t o
m e e t t h e r e q u i r e m e n t s o f D T C a s t o r e g i s t e r i n g o r t r a n s f e r r i n g t h e b o o k e n t r y t o p r o d u c e t h e
s a m e e f f e c t a n d ( i i ) d e l i v e r y o f t h e O b l i g a t i o n s a n d n o t i c e s t o B o n d h o l d e r s w i l l b e i n a c c o r d a n c e
w i t h a r r a n g e m e n t s a m o n g t h e C o m m i s s i o n , t h e T r u s t e e a n d D T C 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
o f t h i s I n d e n t u r e t o t h e c o n t r a r y .
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 , a c t i n g b y a n d t h r o u g h 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 r e a u t h o r i z e d t o e n t e r i n t o a l e t t e r o f r e p r e s e n t a t i o n s w i t h D T C t o i m p l e m e n t t h e
b o o k - e n t r y o n l y s y s t e m o f O b l i g a t i o n r e g i s t r a t i o n d e s c r i b e d a b o v e a n d a l l p a y m e n t s o f p r i n c i p a l ,
P u r c h a s e P r i c e , i n t e r e s t a n d p r e m i u m , i f a n y , 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 l e t t e r o f
r e p r e s e n t a t i o n s w i t h D T C .
I f a t a n y t i m e , D T C c e a s e s t o h o l d t h e O b l i g a t i o n s m b o o k - e n t r y f o r m , a l l
r e f e r e n c e s h e r e i n t o D T C s h a l l b e o f n o f u r t h e r f o r c e o r e f f e c t .
A R T I C L E I I I
A D D I T I O N A L B O N D S , P A R I T Y O B L I G A T I O N S , A N D S U B O R D I N A T E D
O B L I G A T I O N S
S e c t i o n 3 . 0 1 R e s t r i c t i o n s o n I s s u a n c e o f A d d i t i o n a l S e n i o r L i e n 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 . S u b s e q u e n t t o t h e i n i t i a l i s s u a n c e o f S e n i o r L i e n B o n d s p u r s u a n t t o t h i s
I n d e n t u r e , a d d i t i o n a l S e n i o r L i e n B o n d s o r P a r i t y O b l i g a t i o n s m a y b e i s s u e d i f t h e r e q u i r e m e n t s
o f ( a ) , ( b ) o r ( c ) b e l o w a r e m e t .
( a ) t h e S e n i o r L i e n B o n d s o r P a r i t y O b l i g a t i o n s a r e i s s u e d f o r p u r p o s e s o f
r e f u n d i n g O u t s t a n d i n g S e n i o r L i e n B o n d s o r P a r i t y O b l i g a t i o n s b y p r o v i d i n g f u n d s f o r t h e
p a y m e n t o f a n y o r a l l o f t h e f o l l o w i n g :
( 1 ) T h e B o n d O b l i g a t i o n , r e d e m p t i o n o r p u r c h a s e p r i c e ( i n c l u d i n g
p r e m i u m , i f a n y ) o f t h e O u t s t a n d i n g S e n i o r L i e n B o n d s o r P a r i t y O b l i g a t i o n s t o b e
r e f u n d e d ;
( 2 ) A l l e x p e n s e s i n c i d e n t t o t h e c a l l i n g , r e t i r i n g o r p a y i n g o f s u c h
O u t s t a n d i n g S e n i o r L i e n B o n d s o r P a r i t y O b l i g a t i o n s , t h e C o s t s o f I s s u a n c e o f s u c h
O H S U S A : 2 6 0 9 3 5 7 0 9 . 9 3 5
1 4 9
refunding Senior Lien Bonds or Parity Obligations, and any termination payments or
other payments to the holders of obligations of the Commission entered into pursuant to •
California Government Code Section 5922 (or any similar statute) related to such
Outstanding Senior Lien Bonds or Parity Obligations;
(3) Interest on all Outstanding Senior Lien Bonds or Parity
Obligations to be refunded to the date such Senior Lien Bonds or Parity Obligations will
be called for redemption or paid at maturity;
(4) Interest on the refunding Senior Lien Bonds or Parity Obligations
from the date thereof to the date of payment or redemption of the Senior Lien Bonds or
Parity Obligations or to be refunded;
provided that the Commission delivers a Certificate of the Commission to the effect that the
Commission projects that the Average Annual Debt Service on all Outstanding Senior Lien
Bonds and Parity Obligations, Permitted Second Lien Obligations and TIFIA Mandatory Debt
Service after the issuance of the proposed additional Senior Lien Bonds or Parity Obligations
will be less than the Average Annual Debt Service on all Outstanding Senior Lien Bonds and
Parity Obligations, Permitted Second Lien Obligations and TIFIA Mandatory Debt Service prior
to the issuance of such proposed Senior Lien Bonds or Parity Obligations; and provided further,
that, if the maturity date of such additional Senior Lien Bonds or Parity Obligations to be issued
extends to a date later than the final maturity date of the Obligations being refunded, then Net
Revenue in each Fiscal Year from and after the final maturity date of such refunded Obligations
is projected to be not less one hundred thirty percent (130%) ofthe Annual Debt Service payable
in each such Fiscal Year with respect to all Outstanding Senior Lien Bonds and Parity
Obligations, Permitted Second Lien Obligations and TIFIA Mandatory Debt Service, including
the proposed additional Senior Lien Bonds or Parity Obligations.
(b) the Commission delivers a report of the Traffic Consultant to the effect
that, as of the date of issuance of the additional Senior Lien Bonds or Parity Obligations, either:
(1) Net Revenue during the preceding Calculation Period ending not
more than ninety (90) days prior to the date of delivery of the proposed additional Senior
Lien Bonds or Parity Obligations, was sufficient to satisfy the requirements of Section
6.03(a) of this Indenture (which report may assume that a revision of the tolls that was
approved and implemented by the Commission subsequent to the beginning of such
Calculation Period had been in effect for the entire Calculation Period), and
(2) projected Net Revenue for each Fiscal Year over the term of the
proposed additional Senior Lien Bond or Parity Obligations is expected be sufficient to
satisfy the requirements of Section 6.03(a) of this Indenture in each Fiscal Year. In
calculating projected Net Revenue, the Commission shall take into account amounts
projected to be received from any adopted toll increase or increases and any additional
toll lanes and facilities to be designated as included within the definition of Toll Road;
OHSUSA:260935709.9 36
150
•
•
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a n d , w h i l e t h e C o m m i s s i o n h a s o u t s t a n d i n g S u b o r d i n a t e O b l i g a t i o n s i n t h e f o r m o f o r s e c u r i n g
p a y m e n t o f a T I F I A L o a n h e l d b y t h e T I F I A L e n d e r , t h e C o m m i s s i o n h a s r e c e i v e d t h e w r i t t e n
c o n s e n t o f t h e T I F I A L e n d e r t o s u c h i s s u a n c e ; o r
( c ) t h e S e n i o r L i e n B o n d s o r P a r i t y O b l i g a t i o n s c o n s t i t u t e C o m p l e t i o n
O b l i g a t i o n s ; p r o v i d e d , h o w e v e r , t h a t p r i o r t o t h e i n c u r r e n c e o f s u c h C o m p l e t i o n O b l i g a t i o n s , 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 t o t h e T r u s t e e : ( i ) a c e r t i f i c a t e o f a l i c e n s e d a r c h i t e c t o r C o n s u l t i n g
E n g i n e e r e s t i m a t i n g t h e c o s t s o f c o m p l e t i n g t h e f a c i l i t i e s f o r w h i c h s u c h C o m p l e t i o n O b l i g a t i o n s
a r e t o b e i n c u r r e d , ( i i ) 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 u c h
C o m p l e t i o n O b l i g a t i o n s t o b e i n c u r r e d w i l l b e s u f f i c i e n t , t o g e t h e r w i t h o t h e r f u n d s , i f a p p l i c a b l e ,
t o c o m p l e t e c o n s t r u c t i o n o f t h e f a c i l i t i e s a s e s t i m a t e d b y t h e a r c h i t e c t o r C o n s u l t i n g E n g i n e e r i n
r e s p e c t o f w h i c h s u c h C o m p l e t i o n O b l i g a t i o n i s t o b e i n c u r r e d a n d p a y c a p i t a l i z e d i n t e r e s t , i f
a n y , o n C o m m i s s i o n O b l i g a t i o n s O u t s t a n d i n g d u r i n g t h e c o m p l e t i o n p e r i o d , a n d ( i i i ) e v i d e n c e
t h a t s u c h S e n i o r L i e n B o n d s a n d P a r i t y O b l i g a t i o n s w i l l b e r a t e d a t a n i n v e s t m e n t g r a d e r a t i n g b y
s u c h c r e d i t r a t i n g a g e n c y .
S e c t i o n 3 . 0 2 P r o c e e d i n g s f o r I s s u a n c e o f A d d i t i o n a l S e n i o r L i e n B o n d s a n d
P a r i t y O b l i g a t i o n s . W h e n e v e r t h e C o m m i s s i o n d e t e r m i n e s t o i s s u e S e n i o r L i e n B o n d s o r P a r i t y
O b l i g a t i o n s s u b s e q u e n t t o t h e i n i t i a l i s s u a n c e o f S e n i o r L i e n B o n d s p u r s u a n t t o t h i s I n d e n t u r e
a n d a l l S u p p l e m e n t a l I n d e n t u r e s e x e c u t e d a s o f t h e s a m e d a t e , t h e C o m m i s s i o n s h a l l , i n a d d i t i o n
t o f u l f i l l i n g t h e r e q u i r e m e n t s o f A r t i c l e I I , f i l e w i t h o r p r o v i d e t o t h e T r u s t e e :
( a ) 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 t a t i n g t h a t n o E v e n t o f D e f a u l t s p e c i f i e d
i n S e c t i o n 7 . 0 1 h a s o c c u r r e d a n d i s t h e n c o n t i n u i n g ;
( b ) 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 t a t i n g t h a t t h e a p p l i c a b l e r e q u i r e m e n t s o f
S e c t i o n 3 . 0 1 h a v e b e e n s a t i s f i e d ;
( c ) s u c h a m o u n t , i n c a s h o r 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 , a s s h a l l e q u a l
t h e S e n i o r L i e n B o n d R e s e r v e R e q u i r e m e n t , i f a n y , f o r s u c h S e r i e s o f S e n i o r L i e n B o n d s f o r
d e p o s i t i n t h e S e n i o r L i e n B o n d R e s e r v e F u n d ; a n d
( d ) a n O p i n i o n o f B o n d C o u n s e l t o t h e e f f e c t t h a t t h e S u p p l e m e n t a l I n d e n t u r e
c r e a t i n g s u c h S e r i e s o f S e n i o r L i e n B o n d s h a s b e e n 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
i n a c c o r d a n c e w i t h t h i s I n d e n t u r e a n d t h a t s u c h S e r i e s o f S e n i o r L i e n B o n d s , w h e n d u l y e x e c u t e d
b y t h e C o m m i s s i o n a n d a u t h e n t i c a t e d a n d d e l i v e r e d b y t h e T r u s t e e , w i l l b e v a l i d a n d b i n d i n g
o b l i g a t i o n s o f t h e C o m m i s s i o n .
S e c t i o n 3 . 0 3 R e s t r i c t i o n s o n I s s u a n c e o f P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s
o r A d d i t i o n a l S u b o r d i n a t e O b l i g a t i o n s . S u b s e q u e n t t o t h e i n i t i a l i s s u a n c e o f S u b o r d i n a t e
O b l i g a t i o n s i n t h e f o r m o f o r s e c u r i n g p a y m e n t o f a T I F I A L o a n p u r s u a n t t o t h i s I n d e n t u r e ,
S e c o n d L i e n O b l i g a t i o n s o r a d d i t i o n a l S u b o r d i n a t e O b l i g a t i o n s ( i n c l u d i n g o n e o r m o r e T I F I A
L o a n s ) m a y b e i s s u e d i f t h e r e q u i r e m e n t s o f ( a ) , ( b ) o r ( c ) b e l o w a r e m e t .
( a ) t h e P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s o r S u b o r d i n a t e O b l i g a t i o n s , a s
a p p l i c a b l e , a r e i s s u e d f o r p u r p o s e s o f r e f u n d i n g O u t s t a n d i n g P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s
" o r S u b o r d i n a t e O b l i g a t i o n s b y p r o v i d i n g f u n d s f o r t h e p a y m e n t o f a n y o r a l l o f t h e f o l l o w i n g :
O H S U S A : 2 6 0 9 3 5 7 0 9 . 9 3 7
1 5 1
(1) The Bond Obligation, redemption or purchase price (including
premium, if any) of the Outstanding Permitted Second Lien Obligations or Subordinate •
Obligations to be refunded;
(2) All expenses incident to the calling, retiring or paying of such
Outstanding Permitted Second Lien Obligations or Subordinate Obligations, the Costs of
Issuance of such refunding Permitted Second Lien Obligations or Subordinate
Obligations, and any termination payments or other payments to the holders of
obligations of the Commission entered into pursuant to California Government Code
Section 5922 (or any similar statute) related to such Outstanding Permitted Second Lien
Obligations or Subordinate Obligations;
(3) Interest on all Outstanding Permitted Second Lien Obligations or
Subordinate Obligations to be refunded to the date such Permitted Second Lien
Obligations or Subordinate Obligations will be called for redemption or paid at maturity;
(4) Interest on the refunding Permitted Second Lien Obligations or
Subordinate Obligations from the date thereof to the date of payment or redemption of
the Permitted Second Lien Obligations or Subordinate Obligations to be refunded;
provided that the Commission delivers a Certificate of the Commission to the effect that the
Commission projects that the Average Annual Debt Service on all Outstanding Senior Lien
Bonds and Parity Obligations, Permitted Second Lien Obligations and TIFIA Mandatory Debt
Service after the issuance of the proposed additional Permitted Second Lien Obligations or •
Subordinate Obligations will be less than the Average Annual Debt Service on all Outstanding
Senior Lien Bonds and Parity Obligations, Permitted Second Lien Obligations and TIFIA
Mandatory Debt Service prior to the issuance of such proposed Permitted Second Lien
Obligations or Subordinate Obligations; and provided further, that, if the maturity date of such
additional Permitted Second Lien Obligations or Subordinate Obligations to be issued extends to
a date later than the final maturity date of the Obligations being refunded, then Net Revenue in
each Fiscal Year from and after the final maturity date of such refunded Obligations is projected
to be not less one hundred thirty percent ( 130%) of the Annual Debt Service payable in each
such Fiscal Year with respect to all Outstanding Senior Lien Bonds and Parity Obligations,
Permitted Second Lien Obligations and TIFIA Mandatory Debt Service, including the proposed
additional Permitted Second Lien Obligations or Subordinate Obligations.
(b) the Commission delivers a report of the Traffic Consultant to the effect
that, as of the date of issuance of the additional Permitted Second Lien Obligations, either:
(1) Net Revenue during the preceding Calculation Period ending not
more than ninety (90) days prior to the date of delivery of the proposed additional
Permitted Second Lien Obligations or Subordinate Obligations, was sufficient to satisfy
the. requirements of Section 6.03(a)(2) and (3) of this Indenture (which report may
assume that a revision of the tolls that was approved and implemented by the
Commission subsequent to the beginning of such Calculation Period had been in effect
for the entire Calculation Period), and
OHSUSA:260935709.9 38
152
•
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( 2 ) p r o j e c t e d N e t R e v e n u e f o r e a c h F i s c a l Y e a r o v e r t h e t e r m o f t h e
p r o p o s e d a d d i t i o n a l P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s o r S u b o r d i n a t e O b l i g a t i o n s i s
e x p e c t e d b e s u f f i c i e n t t o s a t i s f y t h e r e q u i r e m e n t s o f S e c t i o n 6 . 0 3 ( a ) ( 2 ) a n d ( 3 ) o f t h i s
I n d e n t u r e i n e a c h F i s c a l Y e a r . I n c a l c u l a t i n g p r o j e c t e d N e t R e v e n u e , t h e C o m m i s s i o n
s h a l l t a k e i n t o a c c o u n t a m o u n t s p r o j e c t e d t o b e r e c e i v e d f r o m a n y a d o p t e d t o l l i n c r e a s e o r
i n c r e a s e s a n d a n y a d d i t i o n a l t o l l l a n e s a n d f a c i l i t i e s t o b e d e s i g n a t e d a s i n c l u d e d w i t h i n
t h e d e f i n i t i o n o f T o l l R o a d ;
a n d , w h i l e t h e C o m m i s s i o n h a s o u t s t a n d i n g S u b o r d i n a t e O b l i g a t i o n s i n t h e f o r m o f o r s e c u r i n g
p a y m e n t o f a T I F I A L o a n h e l d b y t h e T I F I A L e n d e r , t h e C o m m i s s i o n h a s r e c e i v e d t h e w r i t t e n
c o n s e n t o f t h e T I F I A L e n d e r t o s u c h i s s u a n c e ; o r
( c ) s u c h P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s o r S u b o r d i n a t e O b l i g a t i o n s
c o n s t i t u t e C o m p l e t i o n O b l i g a t i o n s ; p r o v i d e d , h o w e v e r , t h a t p r i o r t o t h e i n c u r r e n c e o f s u c h
C o m p l e t i o n O b l i g a t i o n s , 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 t o t h e T r u s t e e : ( i ) a c e r t i f i c a t e o f a
l i c e n s e d a r c h i t e c t o r C o n s u l t i n g E n g i n e e r e s t i m a t i n g t h e c o s t s o f c o m p l e t i n g t h e f a c i l i t i e s f o r
w h i c h s u c h C o m p l e t i o n O b l i g a t i o n s a r e t o b e i n c u r r e d a n d p a y c a p i t a l i z e d i n t e r e s t , i f a n y , o n
C o m m i s s i o n O b l i g a t i o n s O u t s t a n d i n g d u r i n g t h e c o m p l e t i o n p e r i o d , a n d ( i i ) 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 u c h C o m p l e t i o n O b l i g a t i o n s t o b e i n c u r r e d w i l l b e
s u f f i c i e n t , t o g e t h e r w i t h o t h e r f u n d s , i f a p p l i c a b l e , t o c o m p l e t e c o n s t r u c t i o n o f t h e f a c i l i t i e s a s
e s t i m a t e d b y t h e a r c h i t e c t o r a C o n s u l t i n g E n g i n e e r i n r e s p e c t o f w h i c h s u c h C o m p l e t i o n
O b l i g a t i o n s i s t o b e i n c u r r e d .
S e c t i o n 3 . 0 4 P r o c e e d i n g s f o r I s s u a n c e o f P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s
o r A d d i t i o n a l S u b o r d i n a t e O b l i g a t i o n s . W h e n e v e r t h e C o m m i s s i o n d e t e r m i n e s t o i s s u e
P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s o r S u b o r d i n a t e O b l i g a t i o n s s u b s e q u e n t t o t h e i n i t i a l i s s u a n c e
o f S u b o r d i n a t e O b l i g a t i o n s p u r s u a n t t o t h i s I n d e n t u r e , t h e C o m m i s s i o n s h a l l f i l e w i t h o r p r o v i d e
t o t h e T r u s t e e :
( a ) 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 t a t i n g t h a t n o E v e n t o f D e f a u l t s p e c i f i e d
i n S e c t i o n 7 . 0 1 h a s o c c u r r e d a n d i s t h e n c o n t i n u i n g ;
( b ) 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 t a t i n g t h a t t h e a p p l i c a b l e r e q u i r e m e n t s o f
S e c t i o n 3 . 0 3 h a v e b e e n s a t i s f i e d ;
( c ) s u c h a m o u n t , i n c a s h o r 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 , a s s h a l l e q u a l
t h e P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s R e s e r v e R e q u i r e m e n t o r S u b o r d i n a t e O b l i g a t i o n s R e s e r v e
R e q u i r e m e n t , i f a n y , a s o f t h e d a t e o f i s s u a n c e o f s u c h S e r i e s o f P e r m i t t e d S e c o n d L i e n
O b l i g a t i o n s o r S u b o r d i n a t e O b l i g a t i o n s , f o r d e p o s i t i n t h e P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s
R e s e r v e F u n d o r S u b o r d i n a t e O b l i g a t i o n s R e s e r v e F u n d a s a p p l i c a b l e ; a n d
( d ) a n O p i n i o n o f B o n d C o u n s e l t o t h e e f f e c t t h a t t h e S u p p l e m e n t a l I n d e n t u r e
c r e a t i n g s u c h S e r i e s o f P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s o r S u b o r d i n a t e O b l i g a t i o n s h a s b e e n
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 i n a c c o r d a n c e w i t h t h i s I n d e n t u r e a n d t h a t s u c h
S e r i e s o f P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s o r S u b o r d i n a t e O b l i g a t i o n s , w h e n d u l y e x e c u t e d b y
t h e C o m m i s s i o n a n d a u t h e n t i c a t e d a n d d e l i v e r e d b y t h e T r u s t e e , w i l l b e v a l i d a n d b i n d i n g
o b l i g a t i o n s o f t h e C o m m i s s i o n .
O H S U S A : 2 6 0 9 3 5 7 0 9 . 9 3 9
1 5 3
Section 3.05 Subordinate Obligations; TIFIA Loans. TIFIA Loan
Agreements, to the extent required by federal law, may contain provisions providing for a lien on
Revenue on a parity with the Senior Lien Bonds and Parity Obligations upon the occurrence and
during the continuance of a Bankruptcy Related Event of the Commission while such TIFIA
Loan Agreement is held by the TIFIA Lender.
ARTICLE IV
REDEMPTION
Section 4.01 Redemption and Purchase of Obligations. Each Series of
Obligations may be made subject to mandatory or optional redemption or mandatory or optional
tender and purchase prior to their respective stated maturities, as a whole or in part, at such time
or times, upon such terms and conditions, at such prices, upon such notice and with such effect
as may be provided in the Supplemental Indenture creating such Series of Obligations.
Section 4.02 Notice of Redemption. Unless otherwise specified in a
Supplemental Indenture creating a Series of Obligations, each notice of redemption shall be
mailed by the Trustee, not less than twenty (20) nor more than sixty (60) days prior to the
redemption date, to each Owner and to the MSRB. Notice of redemption to the Owners shall be
given by first class mail. Each notice of redemption shall state the date of such notice, the date
of issue of the Series of Obligations to which such notice relates, the redemption date, the
redemption price, the place or places of redemption (including the name and appropriate address
or addresses ofthe Trustee), the CUSIP number (if any) ofthe maturity or maturities, and, inthe
case of a Series of Obligations to be redeemed in part only, the identity of the Obligations to be
redeemed. Except as provided in Section 4.03 in the case of conditional optional redemption,
each such notice shall also state that on said date there will become due and payable on each of
said Obligations the redemption price thereof, together with interest accrued thereon to the date
fixed for redemption, and that from and after such redemption date interest thereon shall cease to
accrue, and shall require that such Obligations be then surrendered at the address or addresses of
the Trustee specified in the redemption notice. Neither the Commission nor the Trustee shall
have any responsibility for any defect in the CUSIP number that appears on any Obligation or in
any redemption notice with respect thereto, and any such redemption notice may contain a
statement to the effect that CUSIP numbers have been assigned by an independent service for
convenience of reference and that neither the Commission nor the Trustee shall be liable for any
inaccuracy in such numbers. Failure of any Owner to receive any notice of redemption or any
defect therein shall not affect the sufficiency of any proceedings for redemption.
Section 4.03 Conditional Notice of Redemption; Rescission. Any notice of
optional redemption of the Obligations delivered in accordance with Section 4.02 may be
conditional, and if any condition stated in the notice of redemption shall not have been satisfied
on or prior to the redemption date, said notice shall be of no force and effect and the Commission
shall not be required to redeem the Obligations thereby called for redemption, such Obligations
shall not become due and payable, and the redemption shall be cancelled and the Trustee shall
within a reasonable time thereafter give notice, to the persons and in the manner in which the
notice of redemption was given, that such condition or conditions were not met and that the
redemption was cancelled. In addition, the Commission may, at its option, on or prior to the date
OHSUSA:260935709.9 40
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f i x e d f o r o p t i o n a l r e d e m p t i o n i n a n y n o t i c e o f r e d e m p t i o n o f t h e O b l i g a t i o n s , r e s c i n d a n d c a n c e l
s u c h n o t i c e o f r e d e m p t i o n b y W r i t t e n R e q u e s t o f t h e C o m m i s s i o n t o t h e T r u s t e e , a n d a n y
o p t i o n a l r e d e m p t i o n o f O b l i g a t i o n s a n d n o t i c e t h e r e o f s h a l l b e r e s c i n d e d a n d c a n c e l l e d a n d t h e
T r u s t e e s h a l l m a i l n o t i c e o f s u c h c a n c e l l a t i o n t o t h e r e c i p i e n t s o f t h e n o t i c e o f r e d e m p t i o n b e i n g
c a n c e l l e d 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 . A n y o p t i o n a l r e d e m p t i o n o f O b l i g a t i o n s
a n d n o t i c e t h e r e o f s h a l l b e 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
o p t i o n a l 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 O b l i g a t i o n s 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 a n d s u c h f a i l u r e t o o p t i o n a l l y
r e d e e m t h e O b l i g a t i o n s c a l l e d f o r r e d e m p t i o n s h a l l n o t b e a d e f a u l t h e r e u n d e r .
S e c t i o n 4 . 0 4 E f f e c t o f R e d e m p t i o n . N o t i c e o f r e d e m p t i o n h a v i n g b e e n d u l y
g i v e n a s a f o r e s a i d o r a s o t h e r w i s e p r o v i d e d i n a S u p p l e m e n t a l I n d e n t u r e , a n d m o n e y s f o r
p a y m e n t o f t h e r e d e m p t i o n p r i c e o f , t o g e t h e r w i t h i n t e r e s t a c c r u e d t o t h e r e d e m p t i o n d a t e o n , t h e
O b l i g a t i o n s ( o r p o r t i o n s t h e r e o f ) s o c a l l e d f o r r e d e m p t i o n b e i n g h e l d b y t h e T r u s t e e , o n t h e
r e d e m p t i o n d a t e d e s i g n a t e d i n s u c h n o t i c e , t h e O b l i g a t i o n s ( o r p o r t i o n s t h e r e o f ) s o c a l l e d f o r
r e d e m p t i o n s h a l l b e c o m e d u e a n d p a y a b l e a t t h e r e d e m p t i o n p r i c e s p e c i f i e d i n t h e I n d e n t u r e ,
t o g e t h e r w i t h i n t e r e s t a c c r u e d t h e r e o n t o t h e d a t e f i x e d f o r r e d e m p t i o n , i n t e r e s t o n t h e
O b l i g a t i o n s s o c a l l e d f o r r e d e m p t i o n s h a l l c e a s e t o a c c r u e , s a i d O b l i g a t i o n s ( o r p o r t i o n s t h e r e o f )
s h a l l c e a s e t o b e e n t i t l e d t o a n y b e n e f i t o r s e c u r i t y u n d e r t h i s I n d e n t u r e , a n d t h e O w n e r s o f s a i d
O b l i g a t i o n s s h a l l h a v e n o r i g h t s i n r e s p e c t t h e r e o f e x c e p t t o r e c e i v e p a y m e n t o f s a i d r e d e m p t i o n
p r i c e a n d a c c r u e d i n t e r e s t t o t h e d a t e f i x e d f o r r e d e m p t i o n .
S e c t i o n 4 . 0 5 P a r t i a l R e d e m p t i o n o f O b l i g a t i o n s . U p o n s u r r e n d e r o f a n y
O b l i g a t i o n t o b e r e d e e m e d i n p a r t o n l y , t h e C o m m i s s i o n s h a l l e x e c u t e , a n d t h e T r u s t e e s h a l l
a u t h e n t i c a t e a n d d e l i v e r t o t h e O w n e r o f s u c h O b l i g a t i o n , a t t h e e x p e n s e o f t h e C o m m i s s i o n , a
n e w O b l i g a t i o n o r O b l i g a t i o n s o f A u t h o r i z e d D e n o m i n a t i o n s e q u a l i n B o n d O b l i g a t i o n t o t h e
u n r e d e e m e d p o r t i o n o f t h e O b l i g a t i o n s u r r e n d e r e d , o f t h e s a m e S e r i e s , m a t u r i t y a n d t e r m s a s t h e
s u r r e n d e r e d O b l i g a t i o n .
A R T I C L E V
P L E D G E ; F U N D S A N D A C C O U N T S
S e c t i o n 5 . 0 1 D e p o s i t o f R e v e n u e b y T r u s t e e ; T o l l R e v e n u e F u n d .
( a ) A l l T o l l R e v e n u e s r e c e i v e d a n d r e c e i v a b l e b y t h e C o m m i s s i o n a n d
p l e d g e d a n d a s s i g n e d b y t h i s I n d e n t u r e t o t h e T r u s t e e , t o g e t h e r w i t h t h e b a l a n c e o f t h e T r u s t
E s t a t e , a r e t o b e p a i d d i r e c t l y t o t h e T r u s t e e a n d d e p o s i t e d b y i t i n t h e F u n d s a n d A c c o u n t s
d e s c r i b e d i n t h i s A r t i c l e V a n d h e l d i n t r u s t f o r t h e p u r p o s e s s e t f o r t h h e r e i n , a n d , e x c e p t a s
o t h e r w i s e p r o v i d e d h e r e i n , s h a l l n o t b e s u b j e c t t o a n y l i e n , l e v y , g a r n i s h m e n t o r a t t a c h m e n t b y
a n y c r e d i t o r o f t h e C o m m i s s i o n n o r s h a l l t h e y b e s u b j e c t t o a n y a s s i g n m e n t o r h y p o t h e c a t i o n b y
t h e C o m m i s s i o n . M o n e y s o n d e p o s i t i n t h e F u n d s a n d A c c o u n t s d e s c r i b e d i n t h i s A r t i c l e V
( e x c l u d i n g t h e R e b a t e F u n d a n d a n y F u n d o r A c c o u n t e s t a b l i s h e d t o h o l d t h e p r o c e e d s o f a
d r a w i n g o n a n y C r e d i t S u p p o r t I n s t r u m e n t ) s h a l l b e h e l d b y t h e T r u s t e e i n t r u s t , a n d p e n d i n g
a p p l i c a t i o n 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 A r t i c l e V s h a l l b e s u b j e c t t o a l i e n a n d
c h a r g e i n f a v o r o f t h e H o l d e r s u n t i l a p p l i e d a s h e r e i n a f t e r p r o v i d e d . T h e T r u s t e e s h a l l a t a l l
O H S U S A : 2 6 0 9 3 5 7 0 9 . 9 4 1
1 5 5
times maintain accurate records of deposits into such Funds and Accounts and the sources and •
timing of such deposits.
(b) As long as any Senior Lien Bonds, Parity Obligations, Reserve Facility
Costs, Permitted Second Lien Obligations, or Subordinate Obligations remain unpaid, the
Commission hereby assigns and shall cause Toll Revenues to be transmitted by the Toll Operator
on at least a weekly basis directly to the Trustee for deposit in a trust fund, designated as the
"Toll Revenue Fund," which Fund the Trustee shall establish and maintain in trust. Investment
income on amounts held by the Trustee in the Toll Revenue Fund shall also be deposited in the
Toll Revenue Fund. All moneys at any time held in the Toll Revenue Fund shall be held in trust
for the benefit of the holders of the Senior Lien Bonds, Parity Obligations, Permitted Second
Lien Obligations, and Subordinate Obligations and shall be disbursed, allocated and applied
solely for the uses and purposes set forth in this Indenture.
Section 5.02 Establishment of Funds and Accounts.
(a) In addition to the Toll Revenue Fund established pursuant to Section 5.01,
the following Funds and Accounts are hereby established and created and shall be maintained in
trust by the Trustee:
(1) the Project Fund, and within the Project Fund, the Senior Lien
Bonds Account, the Permitted Second Lien Obligations Account, the Subordinate
Obligations Account, the Sales Tax Revenue Bonds Account and the Commission Equity
Account;
(2) the Rebate Fund;
(3) the Senior Lien Bond Fund and, within the Senior Lien Bond
Fund, the Senior Lien Bond Interest Payment Account and the Senior Lien Bond
Principal Payment Account;
(4) the Senior Lien Bond Reserve Fund;
(5) the Permitted Second Lien Obligations Fund and, within the
Permitted Second Lien Obligations Fund, the Permitted Second Lien Obligations Interest
Account and the Permitted Second Lien Obligations Principal Account;
(6) the Permitted Second Lien Obligations Reserve Fund;
(7) the Subordinate Obligations Payment Fund and the Subordinate
Obligations Repayment Account therein;
OHSUSA:260935709.9
(8) the Subordinate Obligations Reserve Fund;
(9) the Repair and Rehabilitation Fund;
(10) the Capital Expenditures Fund;
42
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( 1 1 ) t h e R e s i d u a l F u n d ; a n d
( 1 2 ) t h e S u r p l u s F u n d .
I n a d d i t i o n , u p o n t h e w r i t t e n r e q u e s t o f t h e C o m m i s s i o n , t h e T r u s t e e s h a l l e s t a b l i s h a n d m a i n t a i n
a d d i t i o n a l t e m p o r a r y F u n d s o r A c c o u n t s o r s u b - a c c o u n t s f o r t h e p u r p o s e s s p e c i f i e d i n a n y s u c h
r e q u e s t .
( b ) A l l o f t h e F u n d s a n d A c c o u n t s ( o t h e r t h a n t h e S u r p l u s F u n d a n d t h e
O p e r a t i o n a n d M a i n t e n a n c e F u n d ) s h a l l b e h e l d b y t h e T r u s t e e a n d , e x c e p t a s e x p r e s s l y p r o v i d e d
h e r e i n , 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 a n y r i g h t t o w i t h d r a w f u n d s f r o m a n y F u n d o r A c c o u n t
e s t a b l i s h e d p u r s u a n t t o S e c t i o n 5 . 0 2 ( a ) . T h e C o m m i s s i o n h e r e b y i r r e v o c a b l y a u t h o r i z e s t h e
T r u s t e e t o c r e d i t f u n d s t o o r d e p o s i t f u n d s i n , a n d t o w i t h d r a w a n d t r a n s f e r f u n d s f r o m , e a c h
F u n d o r A c c o u n t i n a c c o r d a n c e w i t h t h e t e r m s o f t h i s I n d e n t u r e .
S e c t i o n 5 . 0 3 T o l l R e v e n u e F u n d ; P r i o r i t y o f D e p o s i t s a n d T r a n s f e r s .
( a ) F r o m a n d a f t e r t h e S u b s t a n t i a l C o m p l e t i o n D a t e , e x c e p t f o r a m o u n t s t o b e
d e p o s i t e d i n o t h e r F u n d s o r A c c o u n t s p u r s u a n t t o t h i s A r t i c l e , 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
d e p o s i t o r c a u s e t o b e d e p o s i t e d i n t o t h e T o l l R e v e n u e F u n d a l l R e v e n u e a n d t r a n s f e r s f r o m o t h e r
F u n d s o r A c c o u n t s a s r e q u i r e d b y t h e t e r m s o f t h i s I n d e n t u r e . S u b j e c t o n l y t o t h e p r o v i s i o n s o f
t h i s I n d e n t u r e p e r m i t t i n g t h e a p p l i c a t i o n t h e r e o f f o r o r t o t h e p u r p o s e s a n d o n t h e t e r m s a n d
c o n d i t i o n s s e t f o r t h h e r e i n a n d t h e r e i n , t h e T r u s t e e s h a l l b e e n t i t l e d t o a n d s h a l l c o l l e c t a n d
r e c e i v e a l l o f t h e R e v e n u e , a n d a n y R e v e n u e c o l l e c t e d o r r e c e i v e d b y o r o n b e h a l f o f t h e
C o m m i s s i o n s h a l l b e d e e m e d t o b e h e l d , a n d t o h a v e b e e n c o l l e c t e d o r r e c e i v e d , b y o r o n b e h a l f
o f t h e C o m m i s s i o n a s t h e a g e n t o f t h e T r u s t e e a n d s h a l l f o r t h w i t h b e p a i d b y t h e C o m m i s s i o n t o
t h e T r u s t e e .
( b ) O n e a c h M o n t h l y F u n d i n g D a t e f r o m a n d a f t e r t h e S u b s t a n t i a l C o m p l e t i o n
D a t e , s u b j e c t t o S e c t i o n s 5 . 2 3 a n d 5 . 2 4 h e r e o f , i n c l u d i n g t h e d e l i v e r y o f a F u n d s T r a n s f e r
C e r t i f i c a t e b y t h e C o m m i s s i o n ( t o t h e e x t e n t r e q u i r e d b y s u c h S e c t i o n 5 . 2 3 ) , t h e T r u s t e e s h a l l
m a k e t h e f o l l o w i n g t r a n s f e r s a n d p a y m e n t s f r o m t h e T o l l R e v e n u e F u n d i n t h e a m o u n t s , a t t h e
t i m e s a n d o n l y f o r t h e p u r p o s e s s p e c i f i e d b e l o w a n d i n t h e f o l l o w i n g o r d e r o f p r i o r i t y ( i t b e i n g
a g r e e d t h a t n o a m o u n t s h a l l b e t r a n s f e r r e d o n a n y d a t e p u r s u a n t t o a n y c l a u s e b e l o w u n t i l
a m o u n t s s u f f i c i e n t a s o f t h a t M o n t h l y F u n d i n g D a t e ( t o t h e e x t e n t a p p l i c a b l e ) f o r a l l t h e p u r p o s e s
s p e c i f i e d u n d e r t h e p r i o r c l a u s e s s h a l l h a v e b e e n t r a n s f e r r e d o r s e t a s i d e ) :
F i r s t , o n e a c h M o n t h l y F u n d i n g D a t e , t o t h e O p e r a t i o n a n d M a i n t e n a n c e F u n d , t h e
a m o u n t n e c e s s a r y t o i n c r e a s e t h e b a l a n c e o f t h e O p e r a t i o n a n d M a i n t e n a n c e F u n d t o a n a m o u n t
e q u a l t o t h e O p e r a t i o n a n d M a i n t e n a n c e E x p e n s e s t h e n d u e a n d p a y a b l e , p l u s o n e - s i x t h � o f t h e
O p e r a t i o n a n d M a i n t e n a n c e E x p e n s e s p r o j e c t e d i n a c c o r d a n c e w i t h t h e m o s t r e c e n t l y - a d o p t e d
a n n u a l b u d g e t o f t h e C o m m i s s i o n t o b e d u e a n d p a y a b l e d u r i n g t h e n e x t s u c c e e d i n g c a l e n d a r
y e a r ;
S e c o n d , o n e a c h M o n t h l y F u n d i n g D a t e , a n y p a y m e n t s t h e n d u e a n d p a y a b l e b y
t h e C o m m i s s i o n t o t h e R e b a t e F u n d o r a n y s i m i l a r r e b a t e f u n d e s t a b l i s h e d w i t h r e s p e c t t o a n y
f u t u r e t a x - e x e m p t b o r r o w i n g t r a n s a c t i o n ;
O H S U S A : 2 6 0 9 3 5 7 0 9 . 9 4 3
1 5 7
Third, (x) on each Monthly Funding Date and on each other date on which the
following amounts shall be due and payable, to the Senior Lien Bond Interest Payment Account
the sum of (A)(l) in the case of outstanding Senior Lien Bonds or Parity Obligations with
semiannual interest payment dates, one-sixth (1 /6) of the amount of the interest payable on such
Senior Lien Bonds and Parity Obligations on the next interest payment date; (2) in the case of
outstanding Senior Lien Bonds or Parity Obligations with quarterly interest payment dates, one-
fourth (1/4) of the amount of the interest payable on such Senior Lien Bonds and Parity
Obligations on the next interest payment date; and (3) in the case of outstanding Senior Lien
Bonds or Parity Obligations with monthly interest payment dates, the amount of interest payable
on such Senior Lien Bonds and Parity Obligations on the next interest payment date; plus (B) the
sum of any continuing shortfall in transfers required to have been made on any preceding
Monthly Funding Date and any amounts transferred from the Senior Lien Bond Interest Payment
Account pursuant to Section 5.24 and not repaid; plus (C) if such Monthly Funding Date is also
an interest payment date or the last Monthly Funding Date before an interest payment date on
such Senior Lien Bonds or Parity Obligations, any other amount required to make the amount
credited to the Senior Lien Bond Interest Payment Account equal to the amount payable on the
Senior Lien Bonds and Parity Obligations on such interest ·payment date; and (y) on each
Monthly Funding Date, to the applicable Swap Parties, scheduled Hedging Obligations due
under any Qualified Swap Agreements, if any, net of any scheduled amounts payable to the
Commission with respect to such scheduled Hedging Obligations;
Fourth, on each Monthly Funding Date and on each other date on which the
following amounts shall be due and payable, commencing twelve months before the first annual
principal payment date (including any mandatory sinking fund redemption date) or six months
before the first semi-annual principal payment date (including any mandatory sinking fund
redemption date), to the Senior Lien Bond Principal Payment Account, the sum of (A)(l) in the
case of outstanding Senior Lien Bonds or Parity Obligations with annual principal or mandatory
sinking fund payment dates, one-twelfth (1112) of the principal and mandatory sinking fund
redemptions due on the Senior Lien Bonds and Parity Obligations; and (2) in the case of
outstanding Senior Lien Bonds or Parity Obligations with semi-annual principal or mandatory
sinking fund payment dates, one-sixth (1/6) of the principal and mandatory sinking fund
redemptions due on the Senior Lien Bonds and Parity Obligations; and (B) the sum of any
shortfall in transfers required to have been made on any previous Monthly Funding Date, plus
any amounts transferred from the Senior Lien Bond Principal Payment Account pursuant to
Section 5.24 and not repaid; and (C) if the Monthly Funding Date is also a principal payment
date (or mandatory sinking fund redemption date) or the last Monthly Funding Date before a
principal payment date (or mandatory sinking fund redemption date), any other amount required
to make the amount credited to the Senior Lien Bond Principal Payment Account equal to the
amount of principal due on such principal payment date or mandatory sinking fund redemption
date;
Fifth, on each Monthly Funding Date, to the Senior Lien Bond Reserve Fund (or
the applicable Account therein) the amount necessary so that the balance therein equals the
applicable Senior Lien Bond Reserve Requirement calculated as of the most recent Calculation
Date; provided, however, that in the event that the Trustee shall have withdrawn moneys in the
Senior Lien Bond Reserve Fund or any Account therein for the purpose of paying principal of or
interest on the applicable Senior Lien Bonds or Parity Obligations when due as provided in this
OHSUSA:260935709.9 44
158
•
•
•
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I n d e n t u r e , t h e T r u s t e e s h a l l a l s o d e p o s i t t o t h e S e n i o r L i e n B o n d R e s e r v e F u n d o r t h e a p p l i c a b l e
A c c o u n t t h e r e i n , o n e a c h o f t h e n e x t t w e l v e M o n t h l y F u n d i n g D a t e s a f t e r s u c h w i t h d r a w a l , a n
a m o u n t e q u a l t o o n e - t w e l f t h ( 1 / 1 2 1 h ) o f t h e a g g r e g a t e a m o u n t o f e a c h s u c h u m e p l e n i s h e d
w i t h d r a w a l u n t i l t h e a m o u n t o n d e p o s i t i n t h e S e n i o r L i e n B o n d R e s e r v e F u n d ( o r t h e a p p l i c a b l e
A c c o u n t t h e r e i n ) i s e q u a l t o t h e a p p l i c a b l e S e n i o r L i e n B o n d R e s e r v e R e q u i r e m e n t ; p r o v i d e d
f u r t h e r h o w e v e r , t h a t i n t h e e v e n t s u c h r e q u i r e m e n t s c a n n o t b e f u l l y f u n d e d , t h e f u n d s a v a i l a b l e
s h a l l b e t r a n s f e r r e d t o e a c h A c c o u n t i n t h e S e n i o r L i e n B o n d R e s e r v e F u n d r a t a b l y i n a c c o r d a n c e
w i t h i t s r e s p e c t i v e s h o r t f a l l ;
S i x t h , ( x ) o n e a c h M o n t h l y F u n d i n g D a t e a n d o n e a c h o t h e r d a t e o n w h i c h t h e
f o l l o w i n g a m o u n t s s h a l l b e d u e a n d p a y a b l e , t o t h e P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s I n t e r e s t
P a y m e n t A c c o u n t t h e s u m o f ( A ) ( l ) i n t h e c a s e o f o u t s t a n d i n g P e r m i t t e d S e c o n d L i e n
O b l i g a t i o n s w i t h s e m i a n n u a l i n t e r e s t p a y m e n t d a t e s , o n e - s i x t h ( 1 / 6 ) o f t h e a m o u n t o f t h e i n t e r e s t
p a y a b l e o n s u c h P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s o n 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 ; ( 2 ) i n t h e
c a s e o f o u t s t a n d i n g P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s w i t h q u a r t e r l y i n t e r e s t p a y m e n t d a t e s ,
o n e - f o u r t h ( 1 / 4 ) o f t h e a m o u n t o f t h e i n t e r e s t p a y a b l e o n s u c h P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s
o n 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 ; a n d ( 3 ) i n t h e c a s e o f o u t s t a n d i n g P e r m i t t e d S e c o n d L i e n
O b l i g a t i o n s w i t h m o n t h l y i n t e r e s t p a y m e n t d a t e s , t h e a m o u n t o f i n t e r e s t p a y a b l e o n s u c h
P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s o n 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 ; p l u s ( B ) t h e s u m o f a n y
c o n t i n u i n g s h o r t f a l l i n t r a n s f e r s r e q u i r e d t o h a v e b e e n m a d e o n a n y p r e c e d i n g M o n t h l y F u n d i n g
D a t e a n d a n y a m o u n t s t r a n s f e r r e d f r o m t h e P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s I n t e r e s t P a y m e n t
A c c o u n t p u r s u a n t t o S e c t i o n 5 . 2 4 a n d n o t r e p a i d ; p l u s ( C ) i f s u c h M o n t h l y F u n d i n g D a t e i s a l s o
a n i n t e r e s t p a y m e n t d a t e o r t h e l a s t M o n t h l y F u n d i n g D a t e b e f o r e a n i n t e r e s t p a y m e n t d a t e o n
s u c h P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s , a n y o t h e r a m o u n t r e q u i r e d t o m a k e t h e a m o u n t c r e d i t e d
t o t h e P e r m i t t e d S e c o n d L i e n O b l i g a t i o n I n t e r e s t P a y m e n t A c c o u n t e q u a l t o t h e a m o u n t p a y a b l e
o n t h e P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s o n s u c h i n t e r e s t p a y m e n t d a t e , a n d ( y ) o n e a c h
M o n t h l y F u n d i n g D a t e , t o t h e a p p l i c a b l e S w a p P a r t i e s , s c h e d u l e d p a y m e n t s d u e u n d e r a n y
H e d g i n g O b l i g a t i o n s , i f a n y , n e t o f a n y s c h e d u l e d a m o u n t s p a y a b l e t o 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 s u c h s c h e d u l e d H e d g i n g O b l i g a t i o n s , u n d e r a n y S w a p 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
s u c h P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s ;
S e v e n t h , o n e a c h M o n t h l y F u n d i n g D a t e a n d o n e a c h o t h e r d a t e o n w h i c h t h e
f o l l o w i n g a m o u n t s s h a l l b e d u e a n d p a y a b l e , c o m m e n c i n g t w e l v e m o n t h s b e f o r e t h e f i r s t a n n u a l
p r i n c i p a l p a y m e n t d a t e ( i n c l u d i n g a n y m a n d a t o r y s i n k i n g f u n d r e d e m p t i o n d a t e ) o r s i x m o n t h s
b e f o r e t h e f i r s t s e m i - a n n u a l p r i n c i p a l p a y m e n t d a t e ( i n c l u d i n g a n y m a n d a t o r y s i n k i n g f u n d
r e d e m p t i o n d a t e ) , t o t h e P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s P r i n c i p a l P a y m e n t A c c o u n t , t h e s u m
o f ( A ) ( l ) i n t h e c a s e o f o u t s t a n d i n g P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s w i t h a n n u a l p r i n c i p a l o r
m a n d a t o r y s i n k i n g f u n d p a y m e n t d a t e s , o n e - t w e l f t h ( 1 1 1 2 ) o f t h e p r i n c i p a l a n d m a n d a t o r y
s i n k i n g f u n d r e d e m p t i o n s d u e o n t h e P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s ; a n d ( 2 ) i n t h e c a s e o f
o u t s t a n d i n g P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s w i t h s e m i - a n n u a l p r i n c i p a l o r m a n d a t o r y s i n k i n g
f u n d p a y m e n t d a t e s , o n e - s i x t h ( 1 / 6 ) o f t h e p r i n c i p a l a n d m a n d a t o r y s i n k i n g f u n d r e d e m p t i o n s d u e
o n t h e P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s ; a n d ( B ) t h e s u m o f a n y s h o r t f a l l i n t r a n s f e r s r e q u i r e d
t o h a v e b e e n m a d e o n a n y p r e v i o u s M o n t h l y F u n d i n g D a t e , p l u s a n y a m o u n t s t r a n s f e r r e d f r o m
t h e P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s P r i n c i p a l P a y m e n t A c c o u n t p u r s u a n t t o S e c t i o n 5 . 2 4 a n d
n o t r e p a i d ; a n d ( C ) i f t h e M o n t h l y F u n d i n g D a t e i s a l s o a p r i n c i p a l p a y m e n t d a t e ( o r m a n d a t o r y
s i n k i n g f u n d r e d e m p t i o n d a t e ) o r t h e l a s t M o n t h l y F u n d i n g D a t e b e f o r e a p r i n c i p a l p a y m e n t d a t e
( o r m a n d a t o r y s i n k i n g f u n d r e d e m p t i o n d a t e ) , a n y o t h e r a m o u n t r e q u i r e d t o m a k e t h e a m o u n t
O H S U S A : 2 6 0 9 3 5 7 0 9 . 9 4 5
1 5 9
credited to the Permitted Second Lien Obligations Principal Payment Account equal to the
amount of principal due on such principal payment date or mandatory sinking fund redemption •
date;
Eighth, on each Monthly Funding Date, to the Permitted Second Lien Obligations
Reserve Fund, the amount necessary so that the balance therein equals the applicable Permitted
Second Lien Obligations Reserve Requirement calculated as of the most recent Calculation Date;
provided, however, that in the event that the Trustee shall have withdrawn moneys in the
Permitted Second Lien Obligations Reserve Fund therein for the purpose of paying principal of
or interest on the applicable Permitted Second Lien Obligations when due as provided in this
Indenture, the Trustee shall also deposit to the Permitted Second Lien Obligations Reserve Fund,
on each of the next twelve Monthly Funding Dates after such withdrawal, an amount equal to
one-twelfth (lllih) of the aggregate amount of each such unreplenished withdrawal until the
amount on deposit in the Permitted Second Lien Obligations Reserve Fund is equal to the
applicable Permitted Second Lien Obligations Reserve Requirement;
Ninth, (x) on each Monthly Funding Date and on each other date on which the
following amounts shall be due and payable, to the Subordinate Obligations Payment Fund the
sum of (A)(l) in the case of outstanding Subordinate Obligations with semiannual payment
dates, one-sixth (1/6) of the amount payable on such Subordinate Obligations on the next
payment date (such transfers to commence, with respect to Subordinate Obligations in the form
of or securing payment of a TIFIA Loan, on the Monthly Funding Date that is six months prior
to the date on which TIFIA Mandatory Debt Service is first due and payable, and to equal one-
sixth (1/6) of the TIFIA Mandatory Debt Service due on the immediately succeeding TIFIA •
Payment Date); and (2) in the case of outstanding Subordinate Obligations with monthly
payment dates, the amount payable on the next payment date; plus (B) the sum of any continuing
shortfall in transfers required to have been made on any preceding Monthly Funding Date and
any amounts transferred from the Subordinate Obligations Payment Fund pursuant to Section
[5.24] and not repaid; plus (C) if such Monthly Funding Date is also a payment date or the last
Monthly Funding Date before a payment date, any other amount required to make the amount
credited to the Subordinate Obligations Payment Fund equal to the amount payable on the
Subordinate Obligations on such payment date;
Tenth, on each Monthly Funding Date, to the Subordinate Obligations Reserve
Fund, the amount, if any, necessary to increase the balance therein (taking into account amounts
then on deposit therein) to the Subordinate Obligations Reserve Fund Required Balance;
Eleventh, on [each Monthly Funding Date] [July 1 of each Fiscal Year
(commencing July 1, 20[14])], to the extent sufficient funds are then available after application
of funds for the purposes specified in the prior clauses First through Ninth, to the Repair and
Rehabilitation Fund, an amount equal to [one-twelfth (1112)] of the Repair and Rehabilitation
Fund Required Deposit set forth on Exhibit LJ [hereto] [to the TIFIA Loan Agreement] for
such Fiscal Year; provided, however, the Commission may provide a Written Request of the
Commission to the Trustee at least [five (5)] Business Days prior to such [Monthly Funding
Date] [July 1] to deposit an amount that is greater than or less than the Repair and Rehabilitation
Fund Required Deposit (an "Alternate Repair and Rehabilitation Fund Required Deposit") for •
such [Monthly Funding Date] [Fiscal Year]. The Commission shall not increase in any Fiscal
OHSUSA:260935709.9 46
160
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Y e a r t h e a m o u n t o f t h e R e p a i r a n d R e h a b i l i t a t i o n F u n d R e q u i r e d D e p o s i t f o r s u c h F i s c a l Y e a r b y
m o r e t h a n [ 1 0 % ] o v e r t h e a m o u n t s h o w n f o r s u c h d e p o s i t [ i n t h e p r i o r F i s c a l Y e a r ] i n E x h i b i t
[ _ ] [ h e r e t o ] [ t o t h e T I F I A L o a n A g r e e m e n t ] , w i t h o u t t h e T I F I A L e n d e r ' s p r i o r w r i t t e n c o n s e n t .
N o s u c h c o n s e n t s h a l l b e r e q u i r e d p r o v i d e d t h a t t h e C o m m i s s i o n s u b m i t s a W r i t t e n E n g i n e e r ' s
C e r t i f i c a t e t o t h e T r u s t e e a n d T I F I A L e n d e r a t l e a s t [ f i v e ( 5 ) ] B u s i n e s s D a y s p r i o r t o [ M o n t h l y
F u n d i n g D a t e ] [ J u l y 1 ] . [ I f t h e d e l i v e r y o f a W r i t t e n E n g i n e e r ' s C e r t i f i c a t e i s r e q u i r e d f o r a n
A l t e r n a t e R e p a i r a n d R e h a b i l i t a t i o n F u n d R e q u i r e d D e p o s i t , t h e T r u s t e e s h a l l n o t m a k e s u c h
d e p o s i t w i t h o u t t h e p r i o r w r i t t e n c o n s e n t o f t h e T I F I A L e n d e r 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 T I F I A L o a n A g r e e m e n t a n d h e r e o f . ] I f s u f f i c i e n t f u n d s a r e n o t t h e n a v a i l a b l e f o r a
p a r t i c u l a r F i s c a l Y e a r , a f t e r a p p l i c a t i o n o f f u n d s f o r t h e p u r p o s e s s p e c i f i e d i n t h e p r i o r c l a u s e s
F i r s t t h r o u g h N i n t h , t o f u n d t h e R e p a i r a n d R e h a b i l i t a t i o n F u n d R e q u i r e d D e p o s i t o r A l t e r n a t e
R e p a i r a n d R e h a b i l i t a t i o n F u n d R e q u i r e d D e p o s i t , a s a p p l i c a b l e , t h e C o m m i s s i o n m a y u s e f u n d s
[ e a c h M o n t h l y F u n d i n g D a t e ] [ J u l y 1 o f e a c h F i s c a l Y e a r ] f r o m s u b s e q u e n t F i s c a l Y e a r s t o
s a t i s f y t h e R e p a i r a n d R e h a b i l i t a t i o n F u n d R e q u i r e d D e p o s i t o r A l t e r n a t e R e p a i r a n d
R e h a b i l i t a t i o n F u n d R e q u i r e d D e p o s i t , a s a p p l i c a b l e ;
T w e l f t h , i n t h e e v e n t t h e C o m m i s s i o n h a s S u b o r d i n a t e O b l i g a t i o n s o u t s t a n d i n g i n
t h e f o r m o f o r s e c u r i n g p a y m e n t o f a T I F I A L o a n , o n e a c h M o n t h l y F u n d i n g D a t e c o m m e n c i n g
o n t h e M o n t h l y F u n d i n g D a t e t h a t i s s i x m o n t h s p r i o r t o t h e d a t e o n w h i c h T I F I A S c h e d u l e d
D e b t S e r v i c e i s f i r s t d u e a n d p a y a b l e , t o t h e S u b o r d i n a t e O b l i g a t i o n s P a y m e n t F u n d , a n a m o u n t
w h i c h e q u a l s o n e - s i x t h ( 1 / 6 ) o f t h e T I F I A S c h e d u l e d D e b t S e r v i c e ( e x c l u d i n g a n y a m o u n t s t o b e
a p p l i e d t o T I F I A M a n d a t o r y D e b t S e r v i c e i n a c c o r d a n c e w i t h t h e T e n t h c l a u s e a b o v e ) d u e o n t h e
i m m e d i a t e l y s u c c e e d i n g p a y m e n t d a t e f o r s u c h T I F I A L o a n ;
T h i r t e e n t h , o n e a c h M o n t h l y F u n d i n g D a t e , t o t h e e x t e n t s u f f i c i e n t f u n d s a r e t h e n
a v a i l a b l e a f t e r a p p l i c a t i o n o f f u n d s f o r t h e p u r p o s e s s p e c i f i e d i n t h e p r i o r F i r s t t h r o u g h T w e l f t h
c l a u s e s , t o t h e C a p i t a l E x p e n d i t u r e s F u n d t o t h e e x t e n t n e c e s s a r y t o f u n d s u c h F u n d s o t h a t t h e
b a l a n c e t h e r e i n ( t a k i n g i n t o a c c o u n t a m o u n t s t h e n o n d e p o s i t t h e r e i n ) e q u a l s t h e C a p i t a l
E x p e n d i t u r e s F u n d R e q u i r e d B a l a n c e ;
F o u r t e e n t h , o n e a c h M o n t h l y F u n d i n g D a t e a n d o n e a c h o t h e r d a t e o n w h i c h t h e
f o l l o w i n g a m o u n t s s h a l l b e d u e a n d p a y a b l e , t o t h e e x t e n t s u f f i c i e n t f u n d s a r e t h e n a v a i l a b l e a f t e r
a p p l i c a t i o n o f f u n d s f o r t h e p u r p o s e s s p e c i f i e d i n t h e p r i o r F i r s t t h r o u g h T h i r t e e n t h c l a u s e s , t o t h e
c o u n t e r p a r t i e s t o Q u a l i f i e d S w a p A g r e e m e n t s o r S w a p s , a n a m o u n t e q u a l t o a n y H e d g i n g
T e r m i n a t i o n O b l i g a t i o n s p a y a b l e u p o n a t e r m i n a t i o n o f a n y s u c h Q u a l i f i e d S w a p A g r e e m e n t s o r
S w a p s ; a n d
F i f t e e n t h , o n e a c h M o n t h l y F u n d i n g D a t e , a n d o n l y t o t h e e x t e n t f u n d s a r e t h e n
a v a i l a b l e a f t e r a p p l i c a t i o n o f f u n d s f o r t h e p u r p o s e s s p e c i f i e d i n t h e p r i o r F i r s t t h r o u g h
F o u r t e e n t h c l a u s e s , o n s u c h M o n t h l y F u n d i n g D a t e , t o t h e R e s i d u a l F u n d , a l l r e m a i n i n g a m o u n t s ,
i f a n y .
( c ) T o t h e e x t e n t t h a t o n a n y C a l c u l a t i o n D a t e o r a n y o t h e r d a t e o f
d e t e r m i n a t i o n r e q u e s t e d b y t h e C o m m i s s i o n a m o u n t s o n d e p o s i t i n t h e S e n i o r L i e n B o n d
R e s e r v e F u n d a r e i n e x c e s s o f t h e S e n i o r L i e n B o n d R e s e r v e R e q u i r e m e n t , o r a m o u n t s i n t h e
P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s R e s e r v e F u n d a r e i n e x c e s s o f t h e a p p l i c a b l e P e r m i t t e d
S e c o n d L i e n O b l i g a t i o n s R e s e r v e R e q u i r e m e n t , o r a m o u n t s i n t h e S u b o r d i n a t e O b l i g a t i o n s
O H S U S A : 2 6 0 9 3 5 7 0 9 . 9 4 7
1 6 1
Reserve Fund are in excess of the applicable Subordinate Obligations Reserve Requirement, or
amounts in the Repair and Rehabilitation Fund are in excess of the Repair and Rehabilitation •
Fund Required Balance, or amounts in the Capital Expenditures Fund are in excess of the Capital
Expenditures Fund Required Balance, as applicable, such excess amounts will be transferred into
the Toll Revenue Fund.
Section 5.04 Project Fund.
(a) Accounts. Pursuant to Section 5.02(a) hereof, the Trustee is to establish
and create and maintain in trust the following separate Accounts within the Project Fund:
(1) the Senior Lien Bonds Account;
(2) the Permitted Second Lien Obligations Account;
(3) the Subordinate Obligations Account;
(4) the Sales Tax Revenue Bonds Account; and
(5) the Commission Equity Account.
Prior to the Substantial Completion Date, Project Costs shall be paid from the
Project Fund and its Accounts, including the Senior Lien Bonds Account, the Permitted Second
Lien Obligations Account, the Subordinate Obligations Account, the Sales Tax Revenue Bonds
Account and the Commission Equity Account as described below. The Commission shall be •
entitled to open new Accounts of the Project Fund for such purposes as may be set forth in a
Supplemental Indenture.
(b) Senior Lien Bonds Account. The net proceeds of each Series of the Senior
Lien Bonds shall be deposited into the applicable sub-account of the Senior Lien Bonds Account
as provided by the applicable Subordinate Indenture. The Senior Lien Bonds Account and all
sub-accounts therein shall be maintained in order to account for the receipt and disbursement of
proceeds (and all earnings thereon) of the Senior Lien Bonds, including but not limited to, the
payment of, or reimbursement for a prior payment of, Costs of Issuance of Senior Lien Bonds
and Project Costs incurred prior to the Substantial Completion Date, as permitted by the Code
and in compli?nce with the Tax Certificate. Funds therein shall be disbursed [pursuant to a
Funds Transfer Certificate] in accordance with the provisions of Section 5.23.
(c) Permitted Second Lien Obligations Account. The proceeds of any
Permitted Second Lien Obligations will be deposited by the Trustee into the Permitted Second
Lien Obligations Account and will be used to pay Project Costs in accordance with the
provisions of the applicable Permitted Second Lien Obligations. The Commission shall comply
with Section 5.23, including the delivery of a Funds Transfer Certificate (to the extent required
by such Section 5.23) in requesting a disbursement of funds from time to time from the
Permitted Second Lien Obligations Account.
(d) Subordinate Obligations Account. The net proceeds of each draw under •
the TIFIA Loan shall be deposited on the respective funding date of such draw in the
OHSUSA:260935709.9 48
162
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S u b o r d i n a t e O b l i g a t i o n s A c c o u n t i n a c c o r d a n c e w i t h , a n d u s e d f o r t h e p u r p o s e s s e t f o r t h i n , t h e
T I F I A L o a n A g r e e m e n t . T h e C o m m i s s i o n s h a l l c o m p l y w i t h S e c t i o n 5 . 2 3 , i n c l u d i n g t h e
d e l i v e r y o f a F u n d s T r a n s f e r C e r t i f i c a t e ( t o t h e e x t e n t r e q u i r e d b y s u c h S e c t i o n 5 . 2 3 ) i n
r e q u e s t i n g a d i s b u r s e m e n t o f f u n d s f r o m t h e S u b o r d i n a t e O b l i g a t i o n s A c c o u n t f r o m t i m e t o t i m e .
N o t w i t h s t a n d i n g a n y t h i n g t o t h e c o n t r a r y s e t f o r t h h e r e i n , t h e l i e n o n t h e S u b o r d i n a t e O b l i g a t i o n s
A c c o u n t ( a n d a l l e a r n i n g s t h e r e o n ) s h a l l a p p l y o n l y t o t h e T I F I A L o a n A g r e e m e n t a n d t h e r e l a t e d
i n t e r e s t o f t h e T I F I A L e n d e r w i t h r e s p e c t t o a m o u n t s o n d e p o s i t i n s u c h A c c o u n t f r o m t i m e t o
t i m e , a n d s u c h a m o u n t s s h a l l b 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 T I F I A L e n d e r u n t i l s u c h f u n d s h a v e
b e e n d i s b u r s e d i n a c c o r d a n c e w i t h t h i s S e c t i o n .
( e ) S a l e s T a x R e v e n u e B o n d s A c c o u n t . T h e p r o c e e d s o f t h e 2 0 1 3 S a l e s T a x
R e v e n u e B o n d s w i l l b e t r a n s f e r r e d t o t h e T r u s t e e a n d d e p o s i t e d b y t h e T r u s t e e i n t o t h e S a l e s T a x
R e v e n u e B o n d s A c c o u n t a n d w i l l b e u s e d t o p a y S a l e s T a x E l i g i b l e P r o j e c t C o s t s i n a c c o r d a n c e
w i t h t h e p r o v i s i o n s h e r e o f a n d o f t h e S a l e s T a x R e v e n u e B o n d I n d e n t u r e . T h e C o m m i s s i o n s h a l l
c o m p l y w i t h S e c t i o n 5 . 2 3 , i n c l u d i n g t h e d e l i v e r y o f a F u n d s T r a n s f e r C e r t i f i c a t e ( t o t h e e x t e n t
r e q u i r e d b y s u c h S e c t i o n 5 . 2 3 ) , a n d w i t h t h e a p p l i c a b l e p r o v i s i o n s o f t h e S a l e s T a x R e v e n u e
B o n d I n d e n t u r e i n r e q u e s t i n g a d i s b u r s e m e n t o f f u n d s � f r o m t i m e t o t i m e f r o m t h e S a l e s T a x
R e v e n u e B o n d s A c c o u n t .
( f ) C o m m i s s i o n E q u i t y A c c o u n t . E q u i t y . c o n t r i b u t i o n s p r o v i d e d b y t h e
C o m m i s s i o n f r o m t i m e t o t i m e w i l l b e d e p o s i t e d b y t h e T r u s t e e i n t o t h e C o m m i s s i o n E q u i t y
A c c o u n t a n d w i l l b e u s e d t o p a y S a l e s T a x E l i g i b l e P r o j e c t C o s t s . T h e C o m m i s s i o n s h a l l
c o m p l y w i t h S e c t i o n 5 . 2 3 , i n c l u d i n g t h e d e l i v e r y o f a F u n d s T r a n s f e r C e r t i f i c a t e ( t o t h e e x t e n t
r e q u i r e d b y s u c h S e c t i o n 5 . 2 3 ) i n r e q u e s t i n g a d i s b u r s e m e n t o f f u n d s f r o m t i m e t o t i m e f r o m t h e
C o m m i s s i o n E q u i t y A c c o u n t .
( g ) E x c e p t a s o t h e r w i s e r e q u i r e d b y a n y a p p l i c a b l e L a w , t o t h e e x t e n t t h a t o n
t h e d a t e o f f i n a l c o m p l e t i o n o f t h e c o n s t r u c t i o n o f t h e R i v e r s i d 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 , a s e v i d e n c e d b y t h e d e l i v e r y t o t h e T r u s t e e o f 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 , t h e r e
s h a l l b e a n y f u n d s r e m a i n i n g o n d e p o s i t i n t h e P r o j e c t F u n d ( o r a n y A c c o u n t t h e r e o f ) , s u c h f u n d s
w i l l b e d e p o s i t e d i n t o t h e T o l l R e v e n u e F u n d .
S e c t i o n 5 . 0 5 C o m m i s s i o n E q u i t y C o n t r i b u t i o n t o P r o j e c t . T h e C o m m i s s i o n
h e r e b y c o v e n a n t s t o d e p o s i t t h e f o l l o w i n g a m o u n t s i n t o t h e C o m m i s s i o n E q u i t y A c c o u n t , o r
o t h e r w i s e p r o v i d e f o r t h e p a y m e n t o f P r o j e c t C o s t s f r o m s o u r c e s o t h e r t h a n t h e f u n d s o n d e p o s i t
i n t h e S e n i o r L i e n B o n d s A c c o u n t , t h e P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s A c c o u n t , t h e
S u b o r d i n a t e O b l i g a t i o n s A c c o u n t a n d t h e S a l e s T a x R e v e n u e B o n d s A c c o u n t , a s f o l l o w s :
O H S U S A : 2 6 0 9 3 5 7 0 9 . 9
F i s c a l Y e a r
( e n d i n g J u n e 3 0 )
4 9
1 6 3
C o n t r i b u t i o n A m o u n t
$
Such deposits or expenditures are expected to be made by the Commission from Sales Tax •
Revenues or other revenues of the Commission available for such purpose.
Section 5.06 Operation and Maintenance Fund.
(a) The Commission shall establish and maintain the Operation and
Maintenance Fund in accordance herewith.
(b) Upon receipt of amounts transferred to the Operation and Maintenance
Fund under Article V of this Indenture, the Commission shall thereafter apply the funds in the
Operation and Maintenance Fund for the payment of Operation and Maintenance Expenses in
accordance with the terms of this Indenture.
Section 5.07 Capital Expenditures Fund.
(a) The Trustee shall, in accordance with Section 5.03(b), cause amounts in
the Toll Revenue Fund, to the extent _available, to be deposited into the Capital Expenditures
Fund from time to time as shall be necessary to build and thereafter maintain the Capital
Expenditures Fund Required Balance. Any amounts on deposit in the Capital Expenditures Fund
in excess of the Capital Expenditures Fund Required Balance shall be applied in accordance with
Sections 5.03(c) and 5.24 of this Indenture.
(b) On any date on which Capital Expenditures Fund Permitted Expenditures
are due and payable or reasonably expected to become due and payable, monies on deposit in the •
Capital Expenditures Fund shall be applied by the Trustee pursuant to a Written Request of
Commission to pay such Capital Expenditures Fund Permitted Expenditures.
Section 5.08 Senior Lien Bond Reserve Fund.
(a) On the date of issuance of any Series of Senior Lien Bonds or Parity
Obligations that has a Senior Lien Bond Reserve Requirement, the Senior Lien Bond Reserve
Requirement for those Senior Lien Bonds or Parity Obligations shall be deposited in the Senior
Lien Bond Reserve Fund in an Account solely for the benefit of those Senior Lien Bonds or
Parity Obligations. Alternatively, the Supplemental Indenture for any Series of Senior Lien
Bonds may establish a pooled Senior Lien Bond Reserve Requirement for that Series of Senior
Lien Bonds or Parity Obligations and any one or more subsequently issued Series of Senior Lien
Bonds or Parity Obligations with the same pooled Senior Lien Bond Reserve Requirement, in
which case the. Senior Lien Bond Reserve Requirement for the initial such Series of Senior Lien
Bonds or Parity Obligations shall be deposited in the Senior Lien Bond Reserve Fund in an
Account solely for the benefit of those Senior Lien Bonds or Parity Obligations and any
additional Senior Lien Bonds or Parity Obligations with the same pooled Senior Lien Bond
Reserve Requirement, and on the date of issuance of any such additional Senior Lien Bonds or
Parity Obligations, there shall be deposited in the Account the amount necessary to increase the
balance in the Account to an amount equal to the Senior Lien Bond Reserve Requirement for all
Senior Lien Bonds or Parity Obligations secured by that Account.
(b) Monies on deposit in each Account within the Senior Lien Bond Reserve
Fund shall be applied by the Trustee as follows:
OHSUSA:260935709.9 50
164
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( 1 ) I f o n a n y i n t e r e s t p a y m e n t d a t e f o r S e n i o r L i e n B o n d s o r P a r i t y
O b l i g a t i o n s s e c u r e d b y a n A c c o u n t w i t h i n t h e S e n i o r L i e n B o n d R e s e r v e F u n d , p r i n c i p a l
p a y m e n t d a t e f o r s u c h S e n i o r L i e n B o n d s o r P a r i t y O b l i g a t i o n s o r r e d e m p t i o n d a t e o n
w h i c h s u c h S e n i o r L i e n B o n d s o r P a r i t y O b l i g a t i o n s a r e s u b j e c t t o m a n d a t o r y s i n k i n g
f u n d r e d e m p t i o n , t h e a m o u n t o n d e p o s i t i n a n y a p p l i c a b l e A c c o u n t o f t h e S e n i o r L i e n
B o n d F u n d , d e t e r m i n e d a f t e r t a k i n g i n t o a c c o u n t a l l a m o u n t s t r a n s f e r r e d t o s u c h A c c o u n t
o f t h e S e n i o r L i e n B o n d F u n d i n a c c o r d a n c e w i t h t h i s I n d e n t u r e o n o r p r i o r t o s u c h d a t e ,
i s n o t s u f f i c i e n t t o p a y i n t e r e s t a n d / o r p r i n c i p a l a n d / o r t h e r e d e m p t i o n p r i c e ( e x c l u d i n g
a n y r e d e m p t i o n p r e m i u m ) d u e o n s u c h S e n i o r L i e n B o n d s o r P a r i t y O b l i g a t i o n s , t h e n
m o n e y s s h a l l b e t r a n s f e r r e d t o t h e S e n i o r L i e n B o n d I n t e r e s t P a y m e n t A c c o u n t a n d / o r t h e
S e n i o r L i e n B o n d P r i n c i p a l P a y m e n t A c c o u n t , a s a p p l i c a b l e , f r o m t h e a p p l i c a b l e A c c o u n t
o f t h e S e n i o r L i e n B o n d R e s e r v e F u n d w h i c h , t o g e t h e r w i t h m o n e y s t h e n o n d e p o s i t i n
t h e a p p l i c a b l e A c c o u n t o f t h e S e n i o r L i e n B o n d F u n d , w i l l b e s u f f i c i e n t t o p a y i n t e r e s t
a n d / o r p r i n c i p a l a n d / o r t h e r e d e m p t i o n p r i c e ( e x c l u d i n g a n y r e d e m p t i o n p r e m i u m ) d u e o n
s u c h S e n i o r L i e n B o n d s o r P a r i t y O b l i g a t i o n s o n s u c h d a t e . M o n e y s s h a l l b e t r a n s f e r r e d
f i r s t t o t h e S e n i o r L i e n B o n d I n t e r e s t P a y m e n t A c c o u n t u n t i l s u c h A c c o u n t , t o g e t h e r w i t h
a n y a v a i l a b l e f u n d s t h e n o n d e p o s i t i n t h e S e n i o r L i e n B o n d I n t e r e s t P a y m e n t A c c o u n t o f
t h e S e n i o r L i e n B o n d F u n d , i s s u f f i c i e n t l y f u n d e d w i t h r e s p e c t t o s u c h S e n i o r L i e n B o n d s
o r P a r i t y O b l i g a t i o n s a n d t h e r e a f t e r , t o t h e S e n i o r L i e n B o n d P r i n c i p a l P a y m e n t A c c o u n t
u n t i l s u c h A c c o u n t , t o g e t h e r w i t h a n y a v a i l a b l e f u n d s t h e n o n d e p o s i t i n t h e S e n i o r L i e n
B o n d P r i n c i p a l P a y m e n t A c c o u n t o f t h e S e n i o r L i e n B o n d F u n d , i s s u f f i c i e n t l y f u n d e d
w i t h r e s p e c t t o s u c h S e n i o r L i e n B o n d s o r P a r i t y O b l i g a t i o n s .
( 2 ) A t m a t u r i t y o f t h e S e n i o r L i e n B o n d s o r P a r i t y O b l i g a t i o n s u p o n
e a r l i e r r e d e m p t i o n o f a l l o r a n y p o r t i o n o f t h e O u t s t a n d i n g S e n i o r L i e n B o n d s o r P a r i t y
O b l i g a t i o n s s e c u r e d b y f u n d s o n d e p o s i t i n a n A c c o u n t o f t h e S e n i o r L i e n B o n d F u n d , t h e
C o m m i s s i o n m a y d i r e c t t h e T r u s t e e t o t r a n s f e r s u c h f u n d s o n d e p o s i t i n s u c h A c c o u n t o f
t h e S e n i o r L i e n B o n d R e s e r v e F u n d t o t h e S e n i o r L i e n B o n d P r i n c i p a l P a y m e n t A c c o u n t
o f t h e S e n i o r L i e n B o n d F u n d t o b e a p p l i e d t o t h e f i n a l p a y m e n t o f p r i n c i p a l o f a l l o r a
p o r t i o n o f t h e S e n i o r L i e n B o n d s o r P a r i t y O b l i g a t i o n s s e c u r e d b y s u c h f u n d s o r t o a n
e s c r o w a c c o u n t e s t a b l i s h e d f o r d e f e a s a n c e o f s u c h S e n i o r L i e n B o n d s o r P a r i t y
O b l i g a t i o n s p u r s u a n t t o A r t i c l e X h e r e o f , p r o v i d e d t h a t , i f l e s s t h a n a l l o f t h e S e n i o r L i e n
B o n d s o r P a r i t y O b l i g a t i o n s m a t u r e o r a r e r e d e e m e d , t h e a m o u n t o n d e p o s i t i n s u c h
A c c o u n t o f t h e S e n i o r L i e n B o n d R e s e r v e F u n d f o l l o w i n g s u c h t r a n s f e r s h a l l n o t b e l e s s
t h a n t h e S e n i o r L i e n B o n d R e s e r v e R e q u i r e m e n t a p p l i c a b l e t o t h e a p p l i c a b l e S e n i o r L i e n
B o n d s o r P a r i t y O b l i g a t i o n s t o r e m a i n O u t s t a n d i n g f o l l o w i n g s u c h m a t u r i t y o r
r e d e m p t i o n o f S e n i o r L i e n B o n d s o r P a r i t y O b l i g a t i o n s .
( 3 ) E x c e p t a s p r o v i d e d i n p a r a g r a p h ( 2 ) a b o v e , a n y a m o u n t s o n d e p o s i t
i n a n A c c o u n t o f t h e S e n i o r L i e n B o n d R e s e r v e F u n d i n e x c e s s o f t h e a p p l i c a b l e S e n i o r
L i e n B o n d R e s e r v e R e q u i r e m e n t s h a l l b e a p p l i e d i n a c c o r d a n c e w i t h S e c t i o n s 5 . 0 3 ( c ) a n d
5 . 2 4 o f t h i s I n d e n t u r e .
( c ) T h e S e n i o r L i e n B o n d R e s e r v e R e q u i r e m e n t f o r a n y S e r i e s o f S e n i o r L i e n
B o n d s o r P a r i t y O b l i g a t i o n s m a y b e p e r m i t t e d o r r e q u i r e d b y t h e S u p p l e m e n t a l I n d e n t u r e
e s t a b l i s h i n g t h e S e n i o r L i e n B o n d R e s e r v e R e q u i r e m e n t t o b e f u n d e d i n w h o l e o r i n p a r t w i t h a
R e s e r v e F a c i l i t y . T h e t e r m s a n d c o n d i t i o n s f o r a n y R e s e r v e F a c i l i t y s h a l l b e s e t f o r t h i n t h e
O H S U S A : 2 6 0 9 3 5 7 0 9 . 9 5 1
1 6 5
Reserve Facility or the Supplemental Indenture establishing the Senior Lien Bond Reserve •
Requirement to be met in whole or in part by the Reserve Facility, provided that those terms and
conditions shall conform to and be consistent with the provisions set forth in this Section 5.08.
The Trustee shall withdraw cash (and liquidate investments to produce cash) and draw on
Reserve Facilities in any Account in the Senior Lien Bond Reserve Fund to fund payments of
principal of and interest on Senior Lien Bonds or Parity Obligations supported by such Account
in the Senior Lien Bond Reserve Fund in the manner and in the order specified in the applicable
Supplemental Indenture or Supplemental Indentures. This Indenture shall not be discharged
until all Reserve Facility Costs owing to a Reserve Facility Provider shall have been paid in full.
Section 5.09 Subordinate Obligations Reserve Fund.
(a) If, on any Monthly Payment Date immediately preceding a date when debt
service on Subordinate Obligations (including, in the case of a TIFIA Loan, only TIFIA
Mandatory Debt Service) shall be due and payable, the amounts available in the Subordinate
Obligations Payment Fund for the payment of such debt service, after taking into account any
transfers made into such Fund in accordance with clause Ninth of Section 5.03(b) on such
Monthly Payment Date, are not sufficient to pay such debt service payable on such payment
date, then moneys shall be transferred to the Subordinate Obligations Payment Fund from the
Subordinate Obligations Reserve Fund to pay such insufficient amounts.
(b) The lien on the Subordinate Obligations Reserve Fund (and all earnings
thereon) shall secure the payment only of the Subordinate Obligations and the related interest of
the registered Owner of such Subordinate Obligations with respect to amounts on deposit in such •
Fund from time to time, and such amounts shall be solely for the benefit of such holder of
Subordinate Obligations until such funds have been disbursed in accordance with this Section. If
necessary, the Commission shall instruct the Trustee to create Accounts within the Subordinate
Obligations Reserve Fund to facilitate compliance with the provisions of this paragraph and the
applicable provisions of any Supplemental Indenture.
(c) On the date that the Subordinate Obligations are paid in full, the amounts
remammg on deposit in the Subordinate Obligations Reserve Fund on such date will be
transferred to the Surplus Fund.
Section 5.10 Repair and Rehabilitation Fund.
(a) The Trustee shall, in accordance with Section 5.03(b), cause amounts in
the Toll Revenue Fund, to the extent available, to be deposited into the Repair and Rehabilitation
Fund from time to time as shall be necessary to build and thereafter maintain the Repair and
Rehabilitation Fund Required Deposit. Any amounts on deposit in the Repair and Rehabilitation
Fund in excess of the Repair and Rehabilitation Fund Required Deposit shall be applied in
accordance with the requirements of Sections 5.03(c) and 5.24 hereof.
(b) On any date on which Repair and Rehabilitation Fund Permitted
Expenditures are due and payable or reasonably expected to become due and payable, monies on
deposit in the Repair and Rehabilitation Fund shall be applied by the Trustee pursuant to a
OHSUSA:260935709.9 52
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W r i t t e n R e q u e s t o f C o m m i s s i o n t o p a y s u c h R e p a i r a n d R e h a b i l i t a t i o n F u n d P e r m i t t e d
E x p e n d i t u r e s .
S e c t i o n 5 . 1 1 R e s i d u a l F u n d ; S u r p l u s F u n d .
( a ) O n J u n e I [ a n d D e c e m b e r I ] e a c h y e a r , a f t e r t h e p a y m e n t o f a l l a m o u n t s
d u e o n t h e C o m m i s s i o n ' s O b l i g a t i o n s o n s u c h d a t e , t h e a m o u n t s r e m a i n i n g o n d e p o s i t i n t h e
R e s i d u a l F u n d s h a l l b e t r a n s f e r r e d o n e a c h s u c h d a t e a s f o l l o w s : ( I ) w h i l e S u b o r d i n a t e
O b l i g a t i o n s i n t h e f o r m o f o r s e c u r i n g p a y m e n t o f a T I F I A L o a n r e m a i n O u t s t a n d i n g : ( A ) o n e -
h a l f t o t h e S u b o r d i n a t e O b l i g a t i o n s P r e p a y m e n t A c c o u n t , a n d ( B ) o n e - h a l f t o t h e S u r p l u s F u n d ;
o r ( 2 ) i f n o S u b o r d i n a t e O b l i g a t i o n s i n t h e f o r m o f o r s e c u r i n g p a y m e n t o f a T I F I A L o a n r e m a i n
O u t s t a n d i n g , t o t h e S u r p l u s F u n d .
( b ) F u n d s o n d e p o s i t i n t h e S u r p l u s F u n d a n d f u n d s c r e d i t e d t o s u c h F u n d w i l l
n o t b e s u b j e c t t o t h e l i e n a n d p l e d g e o f t h i s I n d e n t u r e , a n d t h e C o m m i s s i o n w i l l h a v e t h e
e x c l u s i v e r i g h t t o w i t h d r a w o r o t h e r w i s e d i s p o s e o f o r t r a n s f e r f u n d s o n d e p o s i t i n t h e S u r p l u s
F u n d t o a n y a c c o u n t ( o r t o s u c h P e r s o n ) a s d i r e c t e d b y t h e C o m m i s s i o n i n w r i t i n g i n i t s s o l e
d i s c r e t i o n o n a n y M o n t h l y F u n d i n g D a t e ; p r o v i d e d t h a t n o E v e n t o f D e f a u l t h a s o c c u r r e d a n d i s
c o n t i n u i n g h e r e u n d e r a n d t h a t t h e r e i s n o s h o r t f a l l i n f u n d i n g t h e a m o u n t s r e q u i r e d b y c l a u s e s
F i r s t t h r o u g h F o u r t e e n t h o f S e c t i o n 5 . 0 3 ( c ) o n s u c h M o n t h l y F u n d i n g D a t e .
S e c t i o n 5 . 1 2 R e b a t e F u n d . T h e r e s h a l l b e d e p o s i t e d i n t h e R e b a t e F u n d s u c h
a m o u n t s a s a r e r e q u i r e d t o b e d e p o s i t e d t h e r e i n p u r s u a n t t o e a c h T a x C e r t i f i c a t e a n d t h e C o d e .
A l l m o n e y a t a n y t i m e d e p o s i t e d i n t h e R e b a t e F u n d s h a l l b e h e l d b y t h e T r u s t e e t o s a t i s f y t h e
R e b a t e R e q u i r e m e n t ( a s d e f i n e d i n t h e T a x C e r t i f i c a t e ) f o r p a y m e n t t o t h e U n i t e d S t a t e s o f
A m e r i c a . T h e T r u s t e e s h a l l h a v e n o r e s p o n s i b i l i t y w i t h r e s p e c t t o t h e R e b a t e F u n d o r t h e R e b a t e
R e q u i r e m e n t e x c e p t t o f o l l o w t h e w r i t t e n i n s t r u c t i o n s o f t h e C o m m i s s i o n .
S e c t i o n 5 . 1 3 S e n i o r L i e n B o n d I n t e r e s t P a y m e n t A c c o u n t . O n e a c h d a t e
w h e n t h e i n t e r e s t p o r t i o n o f d e b t s e r v i c e o n t h e S e n i o r L i e n B o n d s s h a l l b e d u e a n d p a y a b l e ,
m o n i e s o n d e p o s i t i n t h e S e n i o r L i e n B o n d I n t e r e s t P a y m e n t A c c o u n t s h a l l b e a p p l i e d p r o r a t a t o
t h e p a y m e n t o f s u c h i n t e r e s t d u e o n S e n i o r L i e n B o n d s i n a c c o r d a n c e w i t h t h i s I n d e n t u r e .
S e c t i o n 5 . 1 4 S e n i o r L i e n B o n d P r i n c i p a l P a y m e n t A c c o u n t . O n e a c h d a t e
w h e n t h e p r i n c i p a l p o r t i o n o f d e b t s e r v i c e ( i n c l u d i n g a n y m a n d a t o r y s i n k i n g f u n d r e d e m p t i o n
p a y m e n t s ) o n t h e S e n i o r L i e n B o n d s s h a l l b e d u e a n d p a y a b l e , m o n i e s o n d e p o s i t i n t h e S e n i o r
L i e n B o n d P r i n c i p a l P a y m e n t A c c o u n t s h a l l b e a p p l i e d p r o r a t a t o t h e p a y m e n t o f s u c h p r i n c i p a l
p o r t i o n o f S e n i o r L i e n B o n d s i n a c c o r d a n c e w i t h t h i s I n d e n t u r e .
S e c t i o n 5 . 1 5 P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s I n t e r e s t P a y m e n t A c c o u n t .
O n t h e B u s i n e s s D a y p r i o r t o e a c h d a t e w h e n t h e i n t e r e s t p o r t i o n o f d e b t s e r v i c e o n t h e P e r m i t t e d
S e c o n d L i e n O b l i g a t i o n s s h a l l b e d u e a n d p a y a b l e , m o n i e s o n d e p o s i t i n t h e P e r m i t t e d S e c o n d
L i e n O b l i g a t i o n s I n t e r e s t P a y m e n t A c c o u n t s h a l l b e t r a n s f e r r e d p r o r a t a t o t h e t r u s t e e f o r s u c h
i n t e r e s t d u e o n P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s i n a c c o r d a n c e ' Y i t h t h i s I n d e n t u r e .
S e c t i o n 5 . 1 6 P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s P r i n c i p a l P a y m e n t
A c c o u n t . O n t h e B u s i n e s s D a y p r i o r t o t h e d a t e w h e n t h e p r i n c i p a l p o r t i o n o f d e b t s e r v i c e
( i n c l u d i n g a n y m a n d a t o r y s i n k i n g f u n d r e d e m p t i o n p a y m e n t s ) o n t h e P e r m i t t e d S e c o n d L i e n
O H S U S A : 2 6 0 9 3 5 7 0 9 . 9 5 3
1 6 7
Obligations shall be due and payable, monies on deposit in the Permitted Second Lien
Obligations Principal Payment Account shall be transferred pro rata to the trustee for such •
principal portion of the Permitted Second Lien Obligations in accordance with this Indenture.
Section 5.17 Subordinate Obligations Payment Fund.
(a) Funds will be deposited in the Subordinate Obligations Payment Fund in
accordance with clauses Ninth and Twelfth of Section 5.03(b) and in the Subordinate Obligations
Prepayment Account therein in accordance with clause Fifteenth of Section 5.03(b), and
additional funds may be deposited therein pursuant to a Supplemental Indenture.
(b) On each date when amounts shall be due and payable with respect to
Subordinate Obligations, monies on deposit in the Subordinate Obligations Payment Fund shall
be transferred to the trustee for or holder of such Subordinate Obligations in accordance with the
applicable Supplemental Indenture or a Funds Transfer Certificate delivered by the Commission
pursuant Section 5.23.
Section 5.18 Establishment and Application of the Redemption Fund. The
Trustee shall establish, maintain and hold in trust a special Fund designated as the "Redemption
Fund." All moneys deposited by the Commission with the Trustee for the purpose of redeeming
Senior Lien Bonds of any Series (other than pursuant to a mandatory sinking fund redemption)
shall, unless otherwise provided in the Supplemental Indenture establishing the terms and
conditions for such Series of Senior Lien Bonds, be deposited in the Redemption Fund. All
amounts deposited in the Redemption Fund shall be used and withdrawn by the Trustee solely •
for the purpose of redeeming Senior Lien Bonds of such Series and maturity as shall be specified
by the Commission in a Written Request of the Commission delivered to the Trustee, in the
manner, at the times and upon the terms and conditions specified in the Supplemental Indenture
pursuant to which such Series of Senior Lien Bonds was issued. Such Written Request of the
Commission may specify that amounts on deposit in the Redemption Fund that remain
unclaimed for a specified period of time shall be paid to the Commission, and the Trustee shall
pay such unclaimed amounts to the Commission in accordance with the Written Request of the
Commission.
Section 5.19 Permitted Second Lien Obligations Reserve Fund.
(a) If, on any Monthly Payment Date immediately preceding a date when debt
service on Permitted Second Lien Obligations shall be due and payable, the amounts available in
the Permitted Second Lien Obligations Payment Fund for the payment of such debt service, after
taking into account any transfers made into such Fund in accordance with clauses Sixth and
Seventh of Section 5.03(b) on such Monthly Payment Date, are not sufficient to pay such debt
service payable on such payment date, then moneys shall be transferred to the Permitted Second
Lien Obligations Payment Fund from the Permitted Second Lien Obligations Reserve Fund to
pay such insufficient amounts.
(b) The lien on the Permitted Second Lien Obligations Reserve Fund (and all
earnings thereon) shall apply only to the Permitted Second Lien Obligations and the related
interest of the holder of such Permitted Second Lien Obligations with respect to amounts on •
OHSUSA:260935709.9 54
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d e p o s i t i n s u c h F u n d f r o m t i m e t o t i m e , a n d s u c h a m o u n t s s h a l l b e s o l e l y f o r t h e b e n e f i t o f s u c h
h o l d e r o f P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s u n t i l � s u c h f u n d s h a v e b e e n d i s b u r s e d i n a c c o r d a n c e
w i t h t h i s S e c t i o n . I f n e c e s s a r y , t h e C o m m i s s i o n s h a l l i n s t r u c t t h e T r u s t e e t o c r e a t e A c c o u n t s
w i t h i n t h e P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s R e s e r v e F u n d t o f a c i l i t a t e 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 i s p a r a g r a p h .
( c ) O n t h e d a t e t h a t t h e P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s a r e p a i d i n f u l l , t h e
a m o u n t s r e m a i n i n g o n d e p o s i t i n t h e P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s R e s e r v e F u n d o n s u c h
d a t e w i l l b e t r a n s f e r r e d t o t h e R e s i d u a l F u n d .
S e c t i o n 5 . 2 0 R e c o r d s . T h e T r u s t e e s h a l l c a u s e t o b e k e p t a n d m a i n t a i n e d
r e c o r d s p e r t a i n i n g t o e a c h F u n d a n d A c c o u n t h e l d b y i t a n d a l l d i s b u r s e m e n t s t h e r e f r o m a n d s h a l l
d e l i v e r m o n t h l y t o t h e C o m m i s s i o n s t a t e m e n t s o f a c t i v i t y w i t h r e s p e c t t o s u c h F u n d s a n d
A c c o u n t s , p r o v i d e d t h a t t h e T r u s t e e s h a l l n o t b e o b l i g a t e d t o r e p o r t a s t o a n y F u n d o r A c c o u n t
t h a t ( a ) h a s a b a l a n c e o f z e r o a n d ( b ) h a s n o t h a d a n y a c t i v i t y s i n c e t h e l a s t r e p o r t i n g d a t e .
S e c t i o n 5 . 2 1 I n v e s t m e n t b y T r u s t e e . U n l e s s o t h e r w i s e p r o v i d e d i n a
S u p p l e m e n t a l I n d e n t u r e , m o n e y s h e l d b y t h e T r u s t e e i n t 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
h e r e u n d e r s h a l l b e i n v e s t e d a n d r e i n v e s t e d i n P e r m i t t e d I n v e s t m e n t s i n a c c o r d a n c e w i t h t h e
w r i t t e n i n s t r u c t i o n s o f a n A u t h o r i z e d R e p r e s e n t a t i v e .
U n l e s s o t h e r w i s e s p e c i f i e d i n t h e S u p p l e m e n t a l I n d e n t u r e w i t h r e s p e c t t o a F u n d
o r A c c o u n t c r e a t e d p u r s u a n t t o s u c h S u p p l e m e n t a l I n d e n t u r e , a l l P e r m i t t e d I n v e s t m e n t s s h a l l b e
h e l d b y o r u n d e r t h e c o n t r o l o f t h e T r u s t e e a n d s h a l l b e d e e m e d a t a l l t i m e s t o b e a p a r t o f t h e
F u n d o r A c c o u n t t h a t w a s u s e d t o p u r c h a s e t h e P e r m i t t e d I n v e s t m e n t . U n l e s s o t h e r w i s e p r o v i d e d
b y a W r i t t e n R e q u e s t o f t h e C o m m i s s i o n o r i n a S u p p l e m e n t a l I n d e n t u r e w i t h r e s p e c t t o a F u n d
o r A c c o u n t c r e a t e d p u r s u a n t t h e r e t o , a l l i n t e r e s t , p r o f i t s a n d o t h e r i n c o m e r e c e i v e d f r o m 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 F u n d o r A c c o u n t h e l d b y t h e T r u s t e e , o t h e r t h a n t h e R e b a t e F u n d o r
e a c h P r o j e c t 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 T o l l R e v e n u e F u n d w h e n r e c e i v e d . A l l i n t e r e s t ,
p r o f i t s a n d o t h e r i n c o m e r e c e i v e d f r o m t h e i n v e s t m e n t o f m o n e y s i n t h e R e b a t e F u n d s h a l l b e
d e p o s i t e d i n t h e R e b a t e F u n d . U n l e s s o t h e r w i s e p r o v i d e d i n a S u p p l e m e n t a l I n d e n t u r e
e s t a b l i s h i n g a n A c c o u n t w i t h i n t h e P r o j e c t F u n d , a l l i n t e r e s t , p r o f i t s a n d o t h e r i n c o m e r e c e i v e d
f r o m 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 A c c o u n t w i t h i n t h e P r o j e c t F u n d s h a l l b e d e p o s i t e d i n s u c h
A c c o u n t . N o t w i t h s t a n d i n g a n y t h i n g t o t h e c o n t r a r y c o n t a i n e d i n t h i s p a r a g r a p h , a n a m o u n t o f
i n t e r e s t r e c e i v e d w i t h r e s p e c t t o a n y P e r m i t t e d I n v e s t m e n t e q u a l t o t h e a m o u n t o f a c c r u e d
i n t e r e s t , i f a n y , p a i d a s p a r t o f t h e p u r c h a s e p r i c e o f s u c h P e r m i t t e d I n v e s t m e n t s h a l l b e c r e d i t e d
t o t h e F u n d o r A c c o u n t f r o m w h i c h s u c h a c c r u e d i n t e r e s t w a s p a i d .
T h e T r u s t e e i s a u t h o r i z e d a n d d i r e c t e d t o c a u s e t o b e s o l d o r r e d e e m e d a n d
r e d u c e d t o c a s h a s u f f i c i e n t a m o u n t o f P e r m i t t e d I n v e s t m e n t s w h e n e v e r t h e c a s h b a l a n c e i n a n y
F u n d o r A c c o u n t i s o r w i l l b e i n s u f f i c i e n t t o m a k e a n y r e q u i r e d d i s b u r s e m e n t . T h e T r u s t e e s h a l l
n o t b e r e s p o n s i b l e f o r a n y d e p r e c i a t i o n i n t h e v a l u e o f a n y P e r m i t t e d I n v e s t m e n t o r f o r a n y l o s s
r e s u l t i n g f r o m s u c h s a l e o r r e d e m p t i o n . A b s e n t a W r i t t e n R e q u e s t o f t h e C o m m i s s i o n i n s t r u c t i n g
t h e T r u s t e e h o w t o i n v e s t t h e c a s h b a l a n c e i n a F u n d o r A c c o u n t h e l d b y t h e T r u s t e e h e r e u n d e r ,
t h e T r u s t e e s h a l l h o l d s u c h c a s h b a l a n c e s u n i n v e s t e d p e n d i n g i t s r e c e i p t o f s u c h a W r i t t e n
R e q u e s t o f t h e C o m m i s s i o n .
O H S U S A : 2 6 0 9 3 5 7 0 9 . 9 5 5
1 6 9
All Permitted Investments credited to the Senior Lien Bond Reserve Fund shall be
valued as of April 1 of each year (or the next succeeding Business Day if such day is not a •
Business Day). All Permitted Investments credited to the Senior Lien Bond Reserve Fund shall
be valued at their fair market value determined to the extent practical by reference to the dosing
bid price thereof published in The Wall Street Journal or any other financial publication or
generally recognized pricing information service selected by the Trustee in its discretion. The
Trustee may use and rely conclusively and without liability upon any generally recognized
pricing information service (including brokers and dealers in securities) available to it.
The Commission acknowledges that regulations of the Comptroller of the
Currency grant the Commission the right to receive brokerage confirmations of the security
transactions as they occur, at no additional cost. Tothe extent permitted by law, the Commission
specifically waives compliance with 12 C.F.R. 12 and hereby notifies the Trustee that no
brokerage confirmations need be sent relating to the security transactions as they occur.
The Trustee or its affiliates may act as sponsor, advisor, principal or agent in the
acquisition or disposition of any investment with the prior written approval of an Authorized
Representative. The Trustee may commingle any of the moneys held by it pursuant to this
Indenture (except for amounts on deposit in the Rebate Fund and amounts on deposit in any
Fund or Account established to hold the proceeds of a drawing on any Credit Support
Instrument) for investment purposes only; provided, however, that the Trustee shall account
separately for the moneys belonging to each Fund or Account established pursuant to this
Indenture and held by it.
Section 5.22 Subsidy Payments. The Commission irrevocably directs that all
Subsidy Payments with respect to Senior Lien Bonds be made directly to the Trustee for deposit
in the Senior Lien Bond Interest Payment Account pursuant to this Indenture. The Commission
irrevocably directs that all Subsidy Payments with respect to Permitted Second Lien Obligations
be made directly to the Trustee for deposit in the Permitted Second Lien . Obligations Interest
Payment Account pursuant to this Indenture. The Commission irrevocably directs that all
Subsidy Payments with respect to Subordinate Obligations be made directly to the Trustee for
deposit in the Subordinate Obligations Payment Fund pursuant to this Indenture. Any such
Subsidy Payments received by the Commission shall be promptly remitted to the Trustee. The
Trustee shall deposit all such Subsidy Payments to the applicable Account upon receipt thereof.
The Trustee shall file such forms with the Internal Revenue Service and take all other such
actions as the Commission has notified it in writing may be necessary to request and receive such
Subsidy Payments on the Commission's behalf, and the Trustee shall have no responsibility
therefor other than following the Commission's written instructions.
Section 5.23 Withdrawal and Application of Funds; Priority of Transfers
from Funds and Accounts.
(a) Except as provided in Sections 5.04, 5.13, 5.14, 5.15, 5.16, 5.24 and 5.25
•
and clause (d) of this Section 5.23, each withdrawal or transfer of funds from the Funds and
Accounts by the Trustee on behalf of the Commission in accordance herewith shall be made
pursuant to an executed Funds Transfer Certificate, which certificate shall be provided and
prepared by the Commission in accordance with the terms hereof and shall contain a certification •
OHSUSA:260935709.9 56
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b y t h e C o m m i s s i o n t h a t s u c h w i t h d r a w a l o r t r a n s f e r c o m p l i e s 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
I n d e n t u r e . E a c h F u n d s T r a n s f e r C e r t i f i c a t e e x e c u t e d a n d d e l i v e r e d w i t h r e s p e c t t o a t r a n s f e r o f
f u n d s t o t h e S u r p l u s F u n d m u s t a l s o c o m p l y w i t h t h e R e s t r i c t e d P a y m e n t C o n d i t i o n s .
( b ) T h e F u n d s T r a n s f e r C e r t i f i c a t e r e l a t i n g t o e a c h a p p l i c a b l e F u n d o r
A c c o u n t s h a l l b e d e l i v e r e d t o t h e T r u s t e e ( w i t h a c o p y t o t h e t r u s t e e f o r o r h o l d e r o f a n y
P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s o r S u b o r d i n a t e O b l i g a t i o n s ) n o l a t e r t h a n t w o ( 2 ) B u s i n e s s
D a y s p r i o r t o e a c h d a t e o n w h i c h f u n d s a r e p r o p o s e d t o b e w i t h d r a w n f r o m t h e a p p l i c a b l e F u n d
o r A c c o u n t o r t r a n s f e r r e d f r o m a F u n d o r A c c o u n t t o a n o t h e r F u n d o r A c c o u n t i n a c c o r d a n c e
w i t h t h i s I n d e n t u r e . T h e T r u s t e e s h a l l c o m p l y w i t h a n y s u c h F u n d s T r a n s f e r C e r t i f i c a t e ;
p r o v i d e d , t h a t i f t h e t r u s t e e f o r o r h o l d e r o f P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s o r S u b o r d i n a t e
O b l i g a t i o n s p r o v i d e s w r i t t e n n o t i c e t o t h e T r u s t e e , t h e C o m m i s s i o n a n d t h e S e c u r e d P a r t i e s t h a t
a n y p a y m e n t , w i t h d r a w a l o r t r a n s f e r o f f u n d s i s n o t i n c o m p l i a n c e w i t h t h i s I n d e n t u r e o r t h e
o t h e r F i n a n c i n g D o c u m e n t s a n d s p e c i f i e s s u c h n o n - c o m p l i a n c e i n s u c h n o t i c e , t h e C o m m i s s i o n
s h a l l n o t b e e n t i t l e d t o c a u s e s u c h p r o p o s e d w i t h d r a w a l u n t i l s u c h t i m e a s i t h a s s u b m i t t e d a
r e v i s e d F u n d s T r a n s f e r C e r t i f i c a t e w h i c h c o m p l i e s w i t h t h e t e r m s h e r e o f o r t h e r e o f .
( c ) F o r t h e a v o i d a n c e o f d o u b 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 t o
w i t h d r a w o r c a u s e t o b e t r a n s f e r r e d f u n d s f r o m t h e O p e r a t i o n a n d M a i n t e n a n c e F u n d , t h e C a p i t a l
E x p e n d i t u r e s F u n d a n d t h e R e p a i r a n d R e h a b i l i t a t i o n F u n d s o l e l y f o r t h e p u r p o s e o f p a y m e n t o f
O p e r a t i o n a n d M a i n t e n a n c e E x p e n s e s , C a p i t a l E x p e n d i t u r e s F u n d P e r m i t t e d E x p e n d i t u r e s o r
R e p a i r a n d R e h a b i l i t a t i o n F u n d P e r m i t t e d E x p e n d i t u r e s , r e s p e c t i v e l y , a t a n y t i m e w i t h o u t a n y
a p p r o v a l o r c o n s e n t o f t h e T r u s t e e o r a n y o t h e r p e r s o n .
S e c t i o n 5 . 2 4 I n s u f f i c i e n t F u n d s ; A u u l i c a t i o n o f F u n d s ; P r i o r i t y .
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 t o t h e c o n t r a r y h e r e i n o r i n a n y F i n a n c i n g D o c u m e n t ,
s h o u l d t h e a m o u n t o n d e p o s i t i n a n y o f t h e F u n d s o r A c c o u n t s l i s t e d i n t h e F i r s t t h r o u g h
T h i r t e e n t h c l a u s e s i n S e c t i o n 5 . 0 3 ( b ) o f t h i s I n d e n t u r e b e i n s u f f i c i e n t t o p a y w h e n d u e
o b l i g a t i o n s p a y a b l e f r o m s u c h F u n d o r A c c o u n t p u r s u a n t t o t h e t e r m s o f t h i s I n d e n t u r e , t h e
T r u s t e e s h a l l t r a n s f e r t o s u c h F u n d o r A c c o u n t m o n e y s h e l d i n o t h e r F u n d s a n d A c c o u n t s l i s t e d
i n t h e F i r s t t h r o u g h F o u r t e e n t h c l a u s e s i n S e c t i o n 5 . 0 3 ( b ) ; p m J i d e d t h a t : ( i ) s u c h t r a n s f e r s w i l l b e
m a d e f r o m F u n d s a n d A c c o u n t s i n i n v e r s e o r d e r o f t h e d e p o s i t s s e t f o r t h i n S e c t i o n 5 . 0 3 ( b ) , ( i i )
n o s u c h t r a n s f e r s w i l l b e m a d e f r o m a F u n d o r A c c o u n t e a r l i e r i n t h e o r d e r o f d e p o s i t s s e t f o r t h i n
S e c t i o n 5 . 0 3 ( b ) t o a F u n d o r A c c o u n t l a t e r i n s u c h o r d e r o f d e p o s i t s ; a n d ( i i i ) n o s u c h t r a n s f e r s
s h a l l b e m a d e f r o m t h e R e b a t e F u n d , t h e S e n i o r L i e n B o n d R e s e r v e F u n d , t h e S u b o r d i n a t e
O b l i g a t i o n s R e s e r v e F u n d , o r t h e P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s R e s e r v e F u n d ( u n l e s s t h e
f u n d s o n d e p o s i t t h e r e i n a r e i n e x c e s s o f t h e a p p l i c a b l e r e s e r v e r e q u i r e m e n t , i n w h i c h c a s e a n
a m o u n t e q u a l t o s u c h e x c e s s f u n d s o n d e p o s i t s h a l l b e t r a n s f e r r e d f r o m s u c h F u n d ) , o r a n y
R e d e m p t i o n F u n d o r o t h e r F u n d o r A c c o u n t n o t r e f e r e n c e d i n t h e d e p o s i t s s e t f o r t h i n S e c t i o n
5 . 0 3 ( b ) . A m o u n t s i n t h e S e n i o r L i e n B o n d R e s e r v e F u n d s h a l l o n l y b e u s e d t o m a k e p a y m e n t s
o n t h e S e n i o r L i e n B o n d s , a n d a r e n o t a v a i l a b l e f o r o t h e r p u r p o s e s . A m o u n t s i n t h e P e r m i t t e d
S e c o n d L i e n O b l i g a t i o n s R e s e r v e F u n d s h a l l o n l y b e u s e d t o m a k e p a y m e n t s o n t h e a p p l i c a b l e
P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s , a n d a r e n o t a v a i l a b l e f o r o t h e r p u r p o s e s . A m o u n t s i n t h e
S u b o r d i n a t e O b l i g a t i o n s R e s e r v e F u n d s h a l l o n l y b e u s e d t o m a k e p a y m e n t s o n t h e a p p l i c a b l e
S u b o r d i n a t e O b l i g a t i o n s , a n d a r e n o t a v a i l a b l e f o r o t h e r p u r p o s e s .
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ARTICLE VI
COVENANTS OF THE COMMISSION
Section 6.01 Punctual Payment and Performance. The Commission will
punctually pay the principal of and the interest on (and redemption premiums, if any to become
due on) its Obligations hereunder in strict conformity with the terms of the Act, the Indenture
and such Obligations, and will faithfully observe and perform all of the agreements and
covenants contained in the Indenture and such Obligations.
Section 6.02 Against Encumbrances. The Commission will not create or
cause or permit to be created any pledge, lien, charge or encumbrance having priority over the
lien of the Senior Lien Bonds and Parity Obligations upon any part of the Trust Estate, except for
Operation and Maintenance Expenses payable from Revenue. The Commission will not create
or cause or permit to be created any pledge, lien, charge or encumbrance having parity with the
lien of the Senior Lien Bonds and Parity Obligations upon any part of the Trust Estate except the
lien of Senior Lien Bonds and Parity Obligations, and, following a Bankruptcy-Related Event,
Subordinate Obligations in the form of or securing payment of a TIFIA Loan. The Commission
will not create or cause or permit to be created any pledge, lien, charge or encumbrance having
priority over the lien of the Permitted Second Lien Obligations upon any part of the Trust Estate
except Senior Lien Bonds and Parity Obligations and, following a Bankruptcy-Related Event,
Subordinate Obligations in the form of or securing payment of a TIFIA Loan. The Commission
will not create or cause or permit to be created any pledge, lien, charge or encumbrance having
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priority over the lien of the Subordinate Obligations upon any part of the Trust Estate, except •
Senior Lien Bonds and Parity Obligations and, following a Bankruptcy-Related Event,
Subordinate Obligations in the form of or securing payment of a TIFIA Loan, and Permitted
Second Lien Obligations. The Commission will not create or permit to be created or issue any
Obligations secured by the Trust Estate except as provided in Section 3.03.
Section 6.03 Toll and Revenue Covenants.
(a) The Commission covenants that it shall at all times, beginning in the
second Fiscal Year following the Substantial Completion Date, establish, levy, maintain and
collect tolls in connection with the Toll Road and establish such charges for use of the property
constituting part of the Toll Road, including, without limitation and as permitted by law,
leasehold payments, concession payments, rents and other charges, as shall be sufficient,
collectively, to produce Net Revenue in each Fiscal Year, in an amount at least equal to the
greater of (1 ), (2), or (3) below:
( 1) one hundred fifty percent (150%) of the Annual Debt Service in
such Fiscal Year on all Outstanding Senior Lien Bonds and Parity Obligations; or
(2) one hundred thirty percent (130%) of the Annual Debt Service in
such Fiscal Year on all Outstanding Senior Lien Bonds and Parity Obligations, Permitted
Second Lien Obligations and Subordinate Obligations; or
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( 3 ) o n e h u n d r e d p e r c e n t ( 1 0 0 % ) o f t h e A n n u a l D e b t S e r v i c e i n s u c h
F i s c a l Y e a r o n a l l O u t s t a n d i n g O b l i g a t i o n s , p l u s t h e a m o u n t s r e q u i r e d t o b e d e p o s i t e d
i n t o t h e S e n i o r L i e n B o n d R e s e r v e F u n d , t h e P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s R e s e r v e
F u n d , t h e S u b o r d i n a t e O b l i g a t i o n s R e s e r v e F u n d a n d t h e R e p a i r a n d R e h a b i l i t a t i o n F u n d
a n d a n y o t h e r F u n d e s t a b l i s h 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 t o b e f u n d e d b y R e v e n u e .
I n m a k i n g t h e c a l c u l a t i o n s i n ( 1 ) , ( 2 ) , a n d ( 3 ) a b o v e , t h e C o m m i s s i o n m a y t a k e i n t o
c o n s i d e r a t i o n a s a c r e d i t a g a i n s t A n n u a l D e b t S e r v i c e a n y a m o u n t s r e c e i v e d , o r r e a s o n a b l y
e x p e c t e d t o b e r e c e i v e d , i n t h e F i s c a l Y e a r f r o m o r a s a r e s u l t o f a n y a d d i t i o n a l s e c u r i t y g r a n t e d
o r p l e d g e d t o t h e B o n d h o l d e r s b y 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 O b l i g a t i o n s ; p r o v i d e d , t h a t
i f t h e p l e d g e i s n o t f o r t h e b e n e f i t o f a l l O b l i g a t i o n s , t h e a m o u n t s e x p e c t e d t o b e r e c e i v e d m a y
o n l y b e t a k e n i n t o a c c o u n t w h e n m a k i n g t h e c a l c u l a t i o n f o r t h e a f f e c t e d O b l i g a t i o n s .
( b ) B e g i n n i n g i n t h e s e c o n d F i s c a l Y e a r f o l l o w i n g t h e c o m m e n c e m e n t o f t o l l
c o l l e c t i o n s b y t h e C o m m i s s i o n f o r u s e o f t h e T o l l R o a d p u r s u a n t t o t h e C o o p e r a t i v e A g r e e m e n t ,
t h e C o m m i s s i o n c o v e n a n t s : ( i ) t o c o m p u t e p r o j e c t e d N e t R e v e n u e f o r e a c h F i s c a l Y e a r a n d t h e
p r o j e c t e d r a t i o s d e s c r i b e d i n S e c t i o n 6 . 0 3 ( a ) ( l ) , ( 2 ) a n d ( 3 ) ( t h e " C o v e r a g e R a t i o s " ) w i t h i n t e n
B u s i n e s s D a y s a f t e r t h e b e g i n n i n g o f t h a t F i s c a l Y e a r ( s u c h d a t e o f c o m p u t a t i o n b e i n g
h e r e i n a f t e r r e f e r r e d t o a s a " C o v e r a g e C a l c u l a t i o n D a t e " ) ; ( i i ) t o f u r n i s h p r o m p t l y t o 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 s e t t i n g f o r t h t h e r e s u l t s o f s u c h c o m p u t a t i o n s ; a n d ( i i i ) i f a n y
C o v e r a g e R a t i o i s l e s s t h a n t h e a p p l i c a b l e r e q u i r e m e n t o f S e c t i o n 6 . 0 3 ( a ) , t o t a k e s u c h a c t i o n a s
p r o m p t l y a s p r a c t i c a b l e a f t e r t h e C o v e r a g e C a l c u l a t i o n D a t e ( 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 ,
i n c r e a s i n g T o l l R e v e n u e s t h r o u g h t o l l i n c r e a s e s ) a s t h e C o m m i s s i o n p r o j e c t s i s n e c e s s a r y t o
c a u s e t h e p r o j e c t e d C o v e r a g e R a t i o s f o r t h a t F i s c a l Y e a r t o e q u a l o r e x c e e d t h e r e q u i r e m e n t o f
S e c t i o n 6 . 0 3 ( a ) .
( 1 ) W i t h i n 6 0 d a y s a f t e r t h e e n d o f e a c h F i s c a l Y e a r ( b e g i n n i n g w i t h
t h e s e c o n d F i s c a l Y e a r f o l l o w i n g t h e c o m m e n c e m e n t o f t o l l c o l l e c t i o n s b y t h e
C o m m i s s i o n f o r u s e o f t h e T o l l R o a d p u r s u a n t t o t h e C o o p e r a t i v e A g r e e m e n t ) , t h e
C o m m i s s i o n w i l l f i l e w i t h t h e T r u s t e e a r e p o r t s e t t i n g f o r t h t h e N e t R e v e n u e f o r s u c h
F i s c a l Y e a r . T h e f a i l u r e o f t o l l r a t e s t o y i e l d a n a m o u n t s u f f i c i e n t t o a c h i e v e t h e
C o v e r a g e R a t i o d e f i n e d i n S e c t i o n 6 . 0 3 ( b ) s h a l l n o t b e d e e m e d t o c o n s t i t u t e a n E v e n t o f
D e f a u l t s o l o n g a s t h e C o m m i s s i o n c o m p l i e s w i t h t h e r e q u i r e m e n t s s e t f o r t h b e l o w i n t h i s
S e c t i o n 6 . 0 3 ( b ) . I f a n y s u c h r e p o r t i n d i c a t e s t h a t t h e N e t R e v e n u e f o r s u c h F i s c a l Y e a r
w e r e l e s s t h a n t h e a m o u n t r e q u i r e d p u r s u a n t t o S e c t i o n 6 . 0 3 ( b ) , t h e n a s s o o n a s
p r a c t i c a b l e a f t e r d e l i v e r i n g s u c h r e p o r t t o 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 e m p l o y a
T r a f f i c C o n s u l t a n t t o r e v i e w a n d a n a l y z e t h e o p e r a t i o n s o f t h e T o l l R o a d a n d t o s u b m i t t o
t h e B o a r d , a s s o o n a s p r a c t i c a b l e ( b u t n o t l a t e r t h a n s u c h d a t e a s w i l l e n a b l e t h e B o a r d t o
a c t u p o n i t w i t h i n 1 8 0 d a y s a f t e r t h e e n d o f t h e F i s c a l Y e a r i n q u e s t i o n ) , a w r i t t e n r e p o r t
w h i c h s h a l l i n c l u d e t h e a c t i o n s t h a t t h e T r a f f i c C o n s u l t a n t r e c o m m e n d s s h o u l d b e t a k e n
b y 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 ( i ) r e v i s i n g t h e t o l l r a t e s , ( i i ) a l t e r i n g i t s m e t h o d s o f
o p e r a t i o n , o r ( i i i ) t a k i n g o t h e r a c t i o n p r o j e c t e d t o p r o d u c e t h e a m o u n t s o r e q u i r e d i n t h e
f o l l o w i n g t w e l v e m o n t h p e r i o d ( o r , i f l e s s , t h e m a x i m u m a m o u n t d e e m e d f e a s i b l e b y t h e
T r a f f i c C o n s u l t a n t a n d t h a t t h e T r a f f i c C o n s u l t a n t e s t i m a t e s w i l l n o t a d v e r s e l y a f f e c t t h e
a m o u n t o f N e t R e v e n u e ) . P r o m p t l y u p o n i t s r e c e i p t o f s u c h w r i t t e n r e p o r t ( a n d , i n a n y
c a s e , w i t h i n 1 8 0 d a y s a f t e r t h e e n d o f t h e F i s c a l Y e a r i n q u e s t i o n ) , a f t e r g i v i n g d u e
c o n s i d e r a t i o n t h e r e t o , t h e C o m m i s s i o n w i l l r e v i s e t h e t o l l r a t e s , a s p e r m i t t e d b y l a w , a l t e r
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its methods of operation, or take such other action as it deems appropriate. Such •
revisions, alterations, or actions need not comply with the recommendations of the
Traffic Consultant so long as Net Revenue projected. by the Traffic Consultant to be
produced by the revisions, alterations or actions then taken by the Commission are at
least equal to the amount required hereinabove. The Trustee shall have no responsibility
to review any written report received pursuant to this Section 6.03(b ).
(c) The Commission further covenants that such toll rates for traffic using the
Toll Road will be established and maintained in a reasonable way to cover all traffic (other than
vehicles used for maintaining the Toll Road; police, fire, and other public emergency vehicles;
buses owned and operated by any public agency; vehicles with multiple passengers or which
allow for a limited numbers of passengers, including motorcycles, according to policies
determined by the State or the Commission; electric, hybrid-electric and other vehicles that meet
emission-reduction policies determined by the State or the Commission; vehicles which are
otherwise exempt from payment of tolls under State or federal law; and any vehicles during a
public emergency declared by the Commission) consistent with the requirements hereof, but with
such classifications as the Commission may deem appropriate.
(d) Notwithstanding any provision to the contrary, nothing in this Section 6.03
shall be deemed to require the Commission to collect tolls and other fees with respect to which
the Commission has determined, based upon a report from a Traffic Consultant, that the costs of
collection would exceed the amount of tolls and other fees expected to be collected; and
provided further that nothing contained in this Section 6.03 shall prevent the Commission from
temporarily reducing or eliminating tolls and other fees in connection with programs which it •
intends to use to increase Net Revenue.
Section 6.04 Annual Budget. [The Commission covenants that, for each Fiscal
Year, it will take such actions as may be required of it to prepare and will adopt an annual budget
in accordance with applicable law, including the Act, and the Toll Agreements and that it will
provide a copy of such budget to the Trustee [within_ days after] such adoption.]
Section 6.05 Operation and Maintenance of the Toll Road. The Commission
covenants and agrees that it has taken, and, so long as any Obligations are Outstanding, that it
will take, all steps necessary to ensure that it will continue to have lawful right and lawful power
to operate and maintain the Toll Road as a revenue-producing facility and that to impose and
collect tolls on the Toll Road consistent with its obligations under the Act and the Toll
Agreements. The Commission covenants and agrees to at all times operate the Toll Road in
accordance with the requirements of the Act and the Toll Agreements. The Commission further
covenants and agrees that it will pay all Operation and Maintenance Expenses and keep the Toll
Road in good repair in accordance with customary business practices and the Maintenance
Standards (as defined in the Toll Facility Agreement). The Commission further covenants that,
should any Obligations remain Outstanding following the expiration of the Commission's
authorization to impose tolls on the Toll Road, and should the Commission project that, within
five calendar years such authorization will expire with Obligations remaining Outstanding, the
Commission will petition the Legislature of the State to extend its authorization to impose such
tolls.
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S e c t i o n 6 . 0 6 R e t e n t i o n o f A s s e t s . [ S u b j e c t t o t h e p r o v i s i o n s o f t h e A c t a n d t h e
T o l l A g r e e m e n t s , t h e C o m m i s s i o n c o v e n a n t s n o t t o d i s p o s e o f a s s e t s n e c e s s a r y t o o p e r a t e t h e
T o l l R o a d i n t h e m a n n e r a n d a t t h e l e v e l s o f a c t i v i t y r e q u i r e d t o e n a b l e i t t o p e r f o r m i t s
c o v e n a n t s c o n t a i n e d h e r e i n , 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 , t h e c o v e n a n t s c o n t a i n e d i n S e c t i o n
6 . 0 3 ; p r o v i d e d , h o w e v e r , t h a t t h e C o m m i s s i o n m a y p l e d g e R O W R e v e n u e s a s s e c u r i t y f o r a
S u b o r d i n a t e O b l i g a t i o n S u b o r d i n a t e O b l i g a t i o n i n t h e f o r m o f o r s e c u r i n g p a y m e n t o f a T I F I A
L o a n a n d t r a n s f e r R O W R e v e n u e s t o t h e T r u s t e e f o r d e p o s i t i n a r e s e r v e f u n d f o r o r t o p a y d e b t
s e r v i c e o n a S u b o r d i n a t e O b l i g a t i o n i n t h e f o r m o f o r s e c u r i n g p a y m e n t o f a T I F I A L o a n . ]
S e c t i o n 6 . 0 7 I n s u r a n c e . [ T h e C o m m i s s i o n c o v e n a n t s t o c a r r y a t a l l t i m e s
i n s u r a n c e ( i n c l u d i n g r e a s o n a b l e s e l f - i n s u r a n c e ) o r c a u s e i n s u r a n c e t o b e c a r r i e d ( i n c l u d i n g b y t h e
D e s i g n - B u i l d C o n t r a c t o r , i t s s u b c o n t r a c t o r s a n d / o r t h e T o l l O p e r a t o r ) w i t h r e s p o n s i b l e i n s u r a n c e
a n d / o r r e i n s u r a n c e c o m p a n i e s a u t h o r i z e d a n d q u a l i f i e d t o d o b u s i n e s s i n ( o r w i t h c o m p a n i e s d u l y
a u t h o r i z e d a n d q u a l i f i e d t o d o b u s i n e s s i n ) t h e S t a t e a n d t o a s s u m e t h e r i s k s t h e r e o f c o n s i s t e n t
w i t h i n s u r a n c e r e q u i r e m e n t s o f a l l a g r e e m e n t s e n t e r e d i n t o b y t h e C o m m i s s i o n i n c o n n e c t i o n
w i t h t h e c o n s t r u c t i o n , o p e r a t i o n a n d m a i n t e n a n c e o f t h e T o l l R o a d .
N o t h i n g c o n t a i n e d h e r e i n s h a l l b e d e e m e d o r c o n s t r u e d t o p r e v e n t t h e
C o m m i s s i o n f r o m m a i n t a i n i n g p o l i c i e s o f i n s u r a n c e w i t h r e s p e c t t o t h e T o l l R o a d i n w h i c h o t h e r
p a r t i e s a r e n a m e d a s d u a l o b l i g e e b e n e f i c i a r i e s , p r o v i d e d t h a t s u c h o t h e r p a r t i e s s h a l l b e l i m i t e d
t o C a l t r a n s , O C T A , c o n t r a c t o r s c o n s t r u c t i n g S p e c i a l P r o j e c t s a n d p e r s o n s s u p p l y i n g t o l l
c o l l e c t i o n a n d r e v e n u e m a n a g e m e n t s y s t e m e q u i p m e n t o r f a c i l i t i e s . ]
S e c t i o n 6 . 0 8 P a y m e n t o f C l a i m s . T h e C o m m i s s i o n w i l l p a y a n d d i s c h a r g e a n y
a n d a l l l a w f u l c l a i m s t h a t , i f u n p a i d , m i g h t b e c o m e a c h a r g e o r l i e n u p o n t h e T r u s t E s t a t e o r a n y
p a r t t h e r e o f , p r i o r t o o r o n a p a r i t y w i t h t h e c h a r g e a n d l i e n u p o n t h e R e v e n u e s e c u r i n g t h e
O b l i g a t i o n s O u t s t a n d i n g h e r e u n d e r .
S e c t i o n 6 . 0 9 R e c e i p t a n d D e p o s i t o f C a s h A d v a n c e s . [ T h e C o m m i s s i o n
c o v e n a n t s a n d a g r e e s t h a t , i m m e d i a t e l y u p o n r e c e i p t o f c a s h a d v a n c e s r e p r e s e n t i n g d e p o s i t s
a g a i n s t f u t u r e t o l l p a y m e n t s f r o m u s e r s o r p o t e n t i a l u s e r s o f t h e T o l l R o a d , i t w i l l ( i ) d e p o s i t a n d
h o l d s u c h m o n e y s i n a s p e c i a l a c c o u n t , s e p a r a t e f r o m o t h e r a s s e t s o f t h e C o m m i s s i o n , o r c a u s e
s u c h m o n e y s t o b e d e p o s i t e d w i t h a n d h e l d b y a b a n k o r t r u s t c o m p a n y ( w h i c h m a y b e t h e
T r u s t e e ) , ( i i ) i n v e s t s u c h m o n e y s o n l y i n P e r m i t t e d I n v e s t m e n t s o f t h e t y p e d e s c r i b e d i n c l a u s e s
( i ) , ( i i ) , ( i i i ) , ( i v ) , ( v ) , ( v i ) , ( i x ) , ( x i i ) , ( x v i i ) o r ( x v i i i ) o f t h e d e f i n i t i o n t h e r e o f , m a t u r i n g w i t h i n
t h i r t y ( 3 0 ) d a y s f r o m t h e d a t e o f t h e i n v e s t m e n t , a n d ( i i i ) p r o m p t l y , a n d i n a n y e v e n t w i t h i n s e v e n
B u s i n e s s D a y s a f t e r s u c h d e p o s i t s b e c o m e t o l l s , t r a n s f e r o r c a u s e t h e t r a n s f e r o f m o n e y s f r o m
s u c h a c c o u n t f o r c r e d i t t o t h e T o l l R e v e n u e F u n d . T h e C o m m i s s i o n f u r t h e r c o v e n a n t s a n d a g r e e s
t h a t i t w i l l n o t e n t e r i n t o a n y a g r e e m e n t p u r s u a n t t o w h i c h c a s h a d v a n c e s r e c e i v e d b y a n y o t h e r
p e r s o n , b u s i n e s s o r g a n i z a t i o n o r g o v e r n m e n t a l e n t i t y m a y b e a p p l i e d t o t h e p a y m e n t o f t o l l s
u n l e s s s u c h p e r s o n , b u s i n e s s o r g a n i z a t i o n o r g o v e r n m e n t a l e n t i t y , a s t h e c a s e m a y b e , h a s a g r e e d
t o t a k e s u c h a c t i o n s a s t h e C o m m i s s i o n m a y d e t e r m i n e a r e r e a s o n a b l y n e c e s s a r y t o a s s u r e t h a t
t h e C o m m i s s i o n w i l l r e c e i v e t i m e l y p a y m e n t o f s u c h t o l l s . ]
S e c t i o n 6 . 1 0 T o l l A g r e e m e n t s . T h e C o m m i s s i o n h e r e b y c o v e n a n t s a n d a g r e e s
t h a t i t h a s a l l l a w f u l r i g h t a n d p o w e r t o e n t e r i n t o t h e T o l l A g r e e m e n t s a n d t h a t i t s h a l l p e r f o r m
a l l o f i t s m a t e r i a l o b l i g a t i o n s a n d e x e r c i s e a l l o f t h e p o w e r s g r a n t e d t o i t t h e r e u n d e r ( i n c l u d i n g
O H S U S A : 2 6 0 9 3 5 7 0 9 . 9 6 1
1 7 5
but not limited to the Commission's powers to enforce performance by the counterparty to each
such Toll Agreement of such counterparty's obligations thereunder) as the Commission may, in •
its reasonable judgment, determine are necessary to complete or cause the final completion of the
construction of the toll facilities portion of the Riverside SR-91 Corridor Improvement Project in
accordance with the CIP Plan and to commence and continue collection of tolls established
pursuant to Section 6.03 of this Indenture. The Commission hereby covenants and agrees to
employ the design-build method of procurement in connection with the construction of the initial
phase of the Riverside SR-91 Corridor Improvement Project, in accordance with the CIP Plan.
Section 6.11 Construction and Maintenance From Other Sources
Permitted. Notwithstanding any provision to the contrary in this Indenture, the Commission
may, in accordance with the Act and other applicable laws, construct, reconstruct, rehabilitate,
improve, acquire, lease, operate, or maintain, or any combination of these, both tolled and
nontolled facilities, structures, onramps, connector roads, bridges, and roadways that are on,
necessary for, or related to the construction or operation of the Toll Road using any funds legally
available therefore, including, without limitation and as applicable, Sales Tax Revenues and
federal, State and local grants, loans and matching funds. Notwithstanding any other provision
of this Indenture, the United States of America, the State or any of their respective agencies,
departments or political subdivisions may construct, reconstruct, rehabilitate, improve, acquire,
lease, operate, maintain, or any combination of these, both tolled and nontolled facilities,
structures, onramps, connector roads, bridges, and roadways related to or competing with the
SR -91 or to pay for all or any part of the cost thereof. The Commission has no power or
authority to grant, permit or interfere with any such actions.
Section 6.12 Tax Covenants.
(a) The Commission shall not use or permit the use of any proceeds of the
Obligations or any funds of the Commission, directly or indirectly, to acquire any securities or
obligations that would cause the interest on Obligations intended by the Commission to be
exempt from federal income taxation to become subject to federal income taxation, and shall not
take or permit to be taken any other action or actions that would cause any such Obligations 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 shall observe and not violate the
requirements of Section 148 of the Code and any such applicable regulations. The Commission
shall comply with all requirements of Sections 148 and 149(b) of the Code to the extent
applicable to Obligations. In the event that at any time the Commission is of the opinion that for
purposes of this Section 6.03(a) it is necessary to restrict or to limit the yield on the investment
of any moneys held by the Trustee under this Indenture, the Commission shall so instruct the
Trustee under this Indenture in writing, and the Trustee shall take such action as may be
necessary in accordance with such instructions.
(b) The Commission covenants to comply with the provisions and procedures
of each Tax Certificate.
•
(c) The Commission shall not, and shall not cause the Trustee to, use or
permit the use of any proceeds of the Obligations or any funds of the Commission (so long as •
OHSUSA:260935709.9 62
176
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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 ) , 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
s h a 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 c a u s e a n y o f t h e O b l i g a t i o n s t o b e t r e a t e d a s
a n o b l i g a t i o n n o t d e s c r i b e d i n S e c t i o n 1 0 3 ( a ) o f t h e C o d e i f s u c h O b l i g a t i o n s w e r e , w h e n
o r i g i n a l l y i s s u e d , i n t e n d e d b y t h e C o m m i s s i o n t o b e o b l i g a t i o n s d e s c r i b e d i n S e c t i o n 1 0 3 ( a ) o f
t h e C o d e .
( d ) 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 6 . 1 2 o r a n y 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 6 . 1 2 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 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 a n y O b l i g a t i o n 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 a n y 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 .
( e ) T h e T r u s t e e s h a l l f o l l o w t h e d i r e c t i o n s o f t h e C o m m i s s i o n g i v e n p u r s u a n t
t o t h e T a x C e r t i f i c a t e , a n d s h a l l h a v e n o l i a b i l i t y o r r e s p o n s i b i l i t y t o e n f o r c e c o m p l i a n c e b y t h e
C o m m i s s i o n w i t h t h e t e r m s o f t h e T a x C e r t i f i c a t e .
S e c t i o n 6 . 1 3 A c c o u n t i n g R e c o r d s ; 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 R e p o r t s .
( a ) T h e C o m m i s s i o n s h a l l k e e p a p p r o p r i a t e a c c o u n t i n g r e c o r d s 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 . S u c h a c c o u n t i n g r e c o r d s s h a l l a t a l l t i m e s d u r i n g
b u s i n e s s h o u r s b e s u b j e c t t o t h e i n s p e c t i o n o f t h e T r u s t e e o r o f a n y H o l d e r ( o r i t s r e p r e s e n t a t i v e
a u t h o r i z e d i n w r i t i n g ) .
( b ) 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 f i l e w i t h t h e T r u s t e e a n n u a l l y w i t h i n
2 1 0 d a y s a f t e r t h e c l o s e o f e a c h F i s c a l Y e a r 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 s u c h
F i s c a l Y e a r , t o g e t h e r w i t h a n a u d i t r e p o r t t h e r e o n p r e p a r e d b y a n I n d e p e n d e n t C e r t i f i e d P u b l i c
A c c o u n t a n t .
S e c t i o n 6 . 1 4 P r o t e c t i o n o f T r u s t E s t a t e a n d R i g h t s o f H o l d e r s . T h e
C o m m i s s i o n s h a l l p r e s e r v e a n d p r o t e c t t h e T r u s t E s t a t e a n d t h e s e c u r i t y o f t h e O b l i g a t i o n s i s s u e d
h e r e u n d e r a n d t h e r i g h t s o f t h e h o l d e r s o f s u c h O b l i g a t i o n s a n d w i l l w a r r a n t a n d d e f e n d t h e i r
r i g h t s a g a i n s t a l l c l a i m s a n d d e m a n d s o f a l l p e r s o n s . F r o m a n d a f t e r t h e s a l e a n d d e l i v e r y o f a n y
S e n i o r L i e n B o n d s , P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s o r S u b o r d i n a t e O b l i g a t i o n s b y t h e
C o m m i s s i o n , s u c h O b l i g a t i o n s s h a l l b e i n c o n t e s t a b l e b y t h e C o m m i s s i o n .
S e c t i o n 6 . 1 5 P a y m e n t o f G o v e r n m e n t a l C h a r g e s a n d C o m p l i a n c e w i t h
G o v e r n m e n t a l R e g u l a t i o n s . T h e C o m m i s s i o n s h a l l p a y a n d d i s c h a r g e a l l t a x e s o r p a y m e n t s i n
l i e u o f t a x e s , a s s e s s m e n t s a n d o t h e r g o v e r n m e n t a l c h a r g e s o r l i e n s t h a t m a y b e l e v i e d , a s s e s s e d
o r c h a r g e d u p o n t h e R e v e n u e , o r a n y p a r t t h e r e o f , p r o m p t l y a s a n d w h e n t h e s a m e s h a l l b e c o m e
d u e a n d p a y a b l e , e x c e p t t h a t t h e C o m m i s s i o n s h a l l n o t b e r e q u i r e d t o p a y a n y s u c h g o v e r n m e n t a l
c h a r g e s s o l o n g a s t h e a p p l i c a t i o n o r v a l i d i t y t h e r e o f s h a l l b e c o n t e s t e d i n g o o d f a i t h a n d t h e
C o m m i s s i o n s h a l l h a v e s e t a s i d e r e s e r v e s t o c o v e r s u c h p a y m e n t s .
S e c t i o n 6 . 1 6 M a i n t e n a n c e o f P o w e r s . T h e C o m m i s s i o n c o v e n a n t s t h a t i t w i l l
a t a l l t i m e s u s e i t s b e s t e f f o r t s t o m a i n t a i n t h e p o w e r s , r i g h t s , f u n c t i o n s , d u t i e s a n d o b l i g a t i o n s
O H S U S A : 2 6 0 9 3 5 7 0 9 . 9 6 3
1 7 7
now reposed on it pursuant to the Act and all other laws and the Toll Facility Agreement and will •
not at any time voluntarily do, suffer or permit any act or thing the effect of which would be to
hinder, delay or imperil either the payment of the indebtedness evidenced by any of the
Obligations hereunder or Credit Support Instruments relating thereto or the performance or
observance of any of the covenants herein contained.
Section 6.17 Covenants Binding on Commission and Successors. All
covenants, stipulations, obligations and agreements of the Commission contained in this
Indenture shall be deemed to be covenants, stipulations, obligations and agreements of the
Commission to the full extent authorized or permitted by law. If the powers or duties of the
Commission shall hereafter be transferred by amendment of the Act or a new act or any
provision of the Constitution or any other law of the State or in any other manner there shall be a
successor to the Commission, and if such transfer shall relate to any matter or thing permitted or
required to be done under this Indenture by the Commission then the entity that shall succeed to
such powers or duties of the Commission shall act and be obligated in the place and stead of the
Commission as in this Indenture provided, and all such covenants, stipulations, obligations and
agreements shall be binding upon the successor or successors thereof from time to time and upon
any officer, board, body or commission to whom or to which any power or duty affecting such
covenants, stipulations, obligations and agreement shall be transferred by or in accordance with
law.
Section 6.18 Continuing Disclosure. Upon the issuance of any Series of
Obligations, or upon conversion of any Series of Obligations to an interest rate period, requiring
an undertaking regarding continuing disclosure under Rule 15c2-12, the Commission hereby
covenants and agrees that it will execute and deliver a Continuing Disclosure Agreement with
respect to such Series of Obligations and comply with and carry out all of the provisions of such
Continuing Disclosure Agreement applicable to it. Notwithstanding any other provision of this
Indenture, failure of the Commission to comply with the provisions of any Continuing
Disclosure Agreement shall not constitute an Event of Default under this Indenture; provided,
however, that the Trustee, at the request of any Participating Underwriter or the Owner of an
Outstanding Obligation, shall (but only to the extent that the Trustee is indemnified to its
satisfaction from any liability or expense, including fees and expenses of its attorneys) or any
Owner or Beneficial Owner of an Obligation may, take such actions as may be necessary and
appropriate, including seeking mandate or specific performance by court order to cause the
Commission to comply with its obligations under this Section.
Section 6.19 Further Assurances. The Commission will adopt, deliver,
execute and make any and all further assurances, instruments and resolutions as may be
reasonably necessary or proper to carry out the intention or to facilitate the performance hereof
and for the better assuring and confirming unto the Holders of the rights and benefits provided
herein.
OHSUSA:260935709.9 64
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A R T I C L E V I I
D E F A U L T P R O V I S I O N S A N D R E M E D I E S
S e c t i o n 7 . 0 1 E v e n t s o f D e f a u l t . A n y o n e o f t h e f o l l o w i n g a n d a n y o t h e r e v e n t
s p e c i f i e d i n a S u p p l e m e n t a l I n d e n t u r e a s a n E v e n t o f D e f a u l t s h a l l c o n s t i t u t e a n E v e n t o f D e f a u l t
h e r e u n d e r :
( a ) d e f a u l t i n t h e p a y m e n t o f a n y i n t e r e s t o n a n y S e n i o r L i e n B o n d w h e n a n d
a s t h e s a m e s h a l l h a v e b e c o m e d u e ;
( b ) d e f a u l t i n t h e p a y m e n t o f t h e p r i n c i p a l o f o r p r e m i u m , i f a n y , o n a n y
S e n i o r L i e n B o n d w h e n a n d a s t h e s a m e s h a l l b e c o m e d u e , w h e t h e r a t t h e s t a t e d m a t u r i t y o r
r e d e m p t i o n d a t e t h e r e o f o r o t h e r w i s e ;
( c ) d e f a u l t b y t h e C o m m i s s i o n i n t h e o b s e r v a n c e o r p e r f o r m a n c e o f a n y o t h e r
c o v e n a n t o r a g r e e m e n t 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 i s I n d e n t u r e a n d t h e c o n t i n u a n c e
t h e r e o f f o r a p e r i o d o f s i x t y ( 6 0 ) d a y s a f t e r w r i t t e n n o t i c e t h e r e o f t o t h e C o m m i s s i o n g i v e n b y t h e
T r u s t e e ;
( d ) i f t h e C o m m i s s i o n f i l e s a p e t i t i o n i n v o l u n t a r y b a n k r u p t c y f o r t h e
c o m p o s i t i o n o f i t s a f f a i r s o r f o r i t s c o r p o r a t e r e o r g a n i z a t i o n u n d e r a n y s t a t e o r f e d e r a l b a n k r u p t c y
o r i n s o l v e n c y l a w , o r m a k e s a n a s s i g n m e n t f o r t h e b e n e f i t o f c r e d i t o r s , o r a d m i t s i n w r i t i n g t o i t s
i n s o l v e n c y o r i n a b i l i t y t o p a y d e b t s a s t h e y m a t u r e , o r c o n s e n t s i n w r i t i n g t o t h e a p p o i n t m e n t o f a
t r u s t e e o r r e c e i v e r f o r i t s e l f ;
( e ) i f a c o u r t o f c o m p e t e n t j u r i s d i c t i o n s h a l l e n t e r a n o r d e r , j u d g m e n t o r
d e c r e e d e c l a r i n g t h e C o m m i s s i o n i n s o l v e n t , o r a d j u d g i n g i t b a n k r u p t , o r a p p o i n t i n g a t r u s t e e o r
r e c e i v e r o f t h e C o m m i s s i o n , o r a p p r o v i n g a p e t i t i o n f i l e d a g a i n s t t h e C o m m i s s i o n s e e k i n g
r e o r g a n i z a t i o n o f t h e C o m m i s s i o n u n d e r a n y a p p l i c a b l e l a w o r s t a t u t e o f t h e U n i t e d S t a t e s o f
A m e r i c a o r a n y s t a t e t h e r e o f , a n d s u c h o r d e r , j u d g m e n t o r d e c r e e s h a l l n o t b e v a c a t e d o r s e t a s i d e
o r s t a y e d w i t h i n s i x t y ( 6 0 ) d a y s f r o m t h e d a t e o f t h e e n t r y t h e r e o f ; o r
( f ) i f , u n d e r t h e p r o v i s i o n s o f a n y o t h e r l a w f o r t h e r e l i e f o r a i d o f d e b t o r s ,
a n y c o u r t o f c o m p e t e n t j u r i s d i c t i o n s h a l l a s s u m e c u s t o d y o r c o n t r o l o f t h e C o m m i s s i o n o r o f t h e
R e v e n u e , a n d s u c h c u s t o d y o r c o n t r o l s h a l l n o t b e t e r m i n a t e d w i t h i n s i x t y ( 6 0 ) d a y s f r o m t h e
d a t e o f a s s u m p t i o n o f s u c h c u s t o d y o r c o n t r o l .
T h e T r u s t e e s h a l l n o t b e r e q u i r e d t o t a k e n o t i c e o r b e d e e m e d t o h a v e n o t i c e o f a n y E v e n t o f
D e f a u l t o f t h e t y p e d e s c r i b e d i n c l a u s e ( c ) a b o v e u n l e s s t h e T r u s t e e s h a l l b e s p e c i f i c a l l y n o t i f i e d
i n w r i t i n g o f s u c h d e f a u l t b y t h e C o m m i s s i o n , o r b y m e a n s o f a w r i t t e n n o t i c e d e l i v e r e d a t t h e
P r i n c i p a l O f f i c e o f t h e T r u s t e e b y ( i ) t h e O w n e r s o f a t l e a s t 2 5 % i n B o n d O b l i g a t i o n o f a l l S e n i o r
L i e n B o n d s t h e n O u t s t a n d i n g ( o r , i f n o S e n i o r L i e n B o n d s a r e t h e n O u t s t a n d i n g , t h e n t h e H o l d e r s
o f n o t l e s s t h a n a m a j o r i t y o f t h e B o n d O b l i g a t i o n o f t h e P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s a n d
S u b o r d i n a t e O b l i g a t i o n s t h e n O u t s t a n d i n g ) , o r , ( i i ) f o l l o w i n g a B a n k r u p t c y - R e l a t e d E v e n t a n d
p r i o r t o r e p a y m e n t o f a S u b o r d i n a t e O b l i g a t i o n i n t h e f o r m o f o r s e c u r i n g p a y m e n t o f a T I F I A
L o a n i n f u l l p u r s u a n t t o i t s t e r m s , a c o m b i n a t i o n o f t h e T I F I A L e n d e r t o g e t h e r w i t h O w n e r s
r e p r e s e n t i n g a t l e a s t 2 5 % i n B o n d O b l i g a t i o n o f ( X ) s u c h T I F I A L o a n , c a l c u l a t e d a s i f f u l l y
O H S U S A : 2 6 0 9 3 5 7 0 9 . 9 6 5
1 7 9
drawn upon by and in the amount then available to the Commission, plus (Y) all Senior Lien •
Bonds then Outstanding.
Section 7.02 Application of Revenue and Other Funds After Default. If an
Event of Default shall occur and be continuing, the Trust Estate shall be under the control of and
applied by the Trustee as follows and in the following order:
(a) first, to the pro rata payment of all fees, costs and other expenses
(including the reasonable fees, costs and expenses of counsel) owed to the Trustee, the trustee or
holder of any Subordinate Obligations, and any trustee for any Permitted Second Lien
Obligations in connection with the performance of their obligations under the Financing
Documents to which they are a party and the consummation of the transactions contemplated
thereby (in each case to the extent not previously satisfied);
(b) second, to the payment of Operation and Maintenance Expenses;
(c) third, to the pro rata payment of all accrued and unpaid interest (but not
default interest, if any) on all Senior Lien Bonds and Parity Obligations then Outstanding, in
each case in the order of maturity ofthe payments thereof;
(d) fourth, to the pro rata payment of all unpaid principal amounts of any
Senior Lien Bonds and Parity Obligations then due (by acceleration or otherwise);
(e) fifth, to the pro rata payment of all accrued and unpaid default interest •
then due, if any, with respect to any Senior Lien Bonds and Parity Obligations, and and
scheduled payments due under any related Hedging Obligations, if any, net of any scheduled
amounts payable to the Commission with respect to scheduled Hedging Obligations under
Qualified Swap Agreements;
(f) sixth, to the pro rata payment of all accrued and unpaid redemption or
prepayment premium then due, if any, with respect to any Senior Lien Bonds or Parity
Obligations;
(g) seventh, to the pro rata payment of all other amounts, if any, due and
payable under any Financing Document with respect to any Senior Lien Bonds or Parity
Obligations;
(h) eighth, to the pro rata payment of all accrued and unpaid interest (but not
default interest, if any) on all Permitted Second Lien Obligations;
(i) ninth, if any unpaid principal of any Permitted Second Lien Obligations
has become due (by acceleration or otherwise), to the pro rata payment of such unpaid principal
amounts;
(j) tenth, to the pro rata payment of all accrued and unpaid default interest
then due, if any, with respect to any Permitted Second Lien Obligations and scheduled payments
due under any related Hedging Obligations, if any, net of any scheduled amounts payable to the •
Commission with respect to scheduled Hedging Obligations under Swaps;
OHSUSA:260935709.9 66
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( k ) e l e v e n t h , t o t h e p r o r a t a p a y m e n t o f a l l a c c r u e d a n d u n p a i d r e d e m p t i o n o r
p r e p a y m e n t p r e m i u m t h e n d u e , i f a n y , w i t h r e s p e c t t o a n y P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s ;
( I ) t w e l f t h , t o t h e p r o r a t a p a y m e n t o f a l l o t h e r a m o u n t s , i f a n y , d u e a n d
p a y a b l e u n d e r a n y F i n a n c i n g D o c u m e n t w i t h r e s p e c t t o a n y P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s ;
( m ) t h i r t e e n t h , i f a S u b o r d i n a t e O b l i g a t i o n i n t h e f o r m o f o r s e c u r i n g p a y m e n t
o f a T I F I A L o a n i s t h e n o u t s t a n d i n g , t o t h e p r o r a t a p a y m e n t o f ( e x c e p t f r o m a n d a f t e r t h e
o c c u r r e n c e o f a B a n k r u p t c y R e l a t e d E v e n t ) a l l a m o u n t s d u e u n d e r t h e r e l a t e d T I F I A L o a n
A g r e e m e n t t o t h e T I F I A L e n d e r ( t o t h e e x t e n t n o t p r e v i o u s l y p a i d ) ;
( n ) f o u r t e e n t h , t o t h e p a y m e n t o f a n y H e d g i n g T e r m i n a t i o n O b l i g a t i o n s w i t h
r e s p e c t t o Q u a l i f i e d S w a p A g r e e m e n t s o r S w a p s ; a n d
( o ) f i f t e e n t h , u p o n t h e p a y m e n t i n f u l l o f a l l S e c u r e d O b l i g a t i o n s i n
a c c o r d a n c e w i t h c l a u s e s f i r s t t h r o u g h f o u r t e e n t h h e r e o f , t o p a y t o t h e C o m m i s s i o n , o r a s m a y b e
d i r e c t e d b y t h e C o m m i s s i o n , o r a s a c o u r t o f c o m p e t e n t j u r i s d i c t i o n m a y d i r e c t , a n y R e v e n u e o r
o t h e r f u n d s t h e n r e m a i n i n g i n t h e T r u s t E s t a t e .
S e c t i o n 7 . 0 3 N o A c c e l e r a t i o n . T h e r e s h a l l b e n o r i g h t o f a c c e l e r a t i o n w i t h
r e s p e c t t o t h e O b l i g a t i o n s .
S e c t i o n 7 . 0 4 S u i t s a t L a w o r i n E q u i t y a n d M a n d a m u s . I n c a s e o n e o r m o r e
E v e n t s o f D e f a u l t s h a l l o c c u r , t h e n a n d i n e v e r y s u c h c a s e t h e T r u s t e e m a y , a n d s h a l l a t t h e
r e q u e s t o f t h e H o l d e r s o f n o t l e s s t h a n a m a j o r i t y o f t h e B o n d O b l i g a t i o n o f a n y S e r i e s o f S e n i o r
L i e n B o n d s t h e n O u t s t a n d i n g ( o r s u c h g r e a t e r p e r c e n t a g e o f t h e H o l d e r s o f S e n i o r L i e n B o n d s o f
a n y S e r i e s a s m a y b e s p e c i f i e d i n t h e S u p p l e m e n t a l I n d e n t u r e c r e a t i n g s u c h S e r i e s , o r , i f n o
S e n i o r L i e n B o n d s a r e t h e n O u t s t a n d i n g , t h e n t h e H o l d e r s o f n o t l e s s t h a n a m a j o r i t y o f t h e B o n d
O b l i g a t i o n o f t h e P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s a n d S u b o r d i n a t e O b l i g a t i o n s t h e n
O u t s t a n d i n g ) u p o n r e c e i v i n g a d e q u a t e i n d e m n i t y , p o t e n t i a l l y i n c l u d i n g i n d e m n i t y p r o v i d e d b y
s u c h H o l d e r s , p r o c e e d t o p r o t e c t a n d e n f o r c e B o n d h o l d e r r i g h t s b y s u c h a p p r o p r i a t e j u d i c i a l
p r o c e e d i n g a s t h e T r u s t e e s h a l l d e e m m o s t e f f e c t u a l t o p r o t e c t a n d e n f o r c e a n y s u c h r i g h t , e i t h e r
b y s u i t i n e q u i t y o r b y a c t i o n a t l a w , w h e t h e r f o r t h e s p e c i f i c p e r f o r m a n c e o f a n y 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 I n d e n t u r e , o r i n a i d o f t h e e x e r c i s e o f a n y p o w e r g r a n t e d i n t h i s
I n d e n t u r e , o r t o e n f o r c e a n y o t h e r l e g a l o r e q u i t a b l e r i g h t v e s t e d i n t h e h o l d e r s o f O b l i g a t i o n s b y
t h i s I n d e n t u r e o r s u c h O b l i g a t i o n s o r b y l a w . T h e p r o v i s i o n s o f t h i s I n d e n t u r e s h a l l c o n s t i t u t e a
c o n t r a c t w i t h e a c h a n d e v e r y B o n d h o l d e r a n d t h e d u t i e s o f t h e C o m m i s s i o n s h a l l b e e n f o r c e a b l e
b y t h e T r u s t e e o n b e h a l f o f a n y B o n d h o l d e r b y m a n d a m u s o r o t h e r a p p r o p r i a t e s u i t , 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 o f c o m p e t e n t j u r i s d i c t i o n . N o t h i n g h e r e i n s h a l l b e d e e m e d t o a u t h o r i z e
t h e T r u s t e e t o a u t h o r i z e o r c o n s e n t t o o r a c c e p t o r a d o p t o n b e h a l f o f a n y B o n d h o l d e r a n y p l a n o f
r e o r g a n i z a t i o n , a r r a n g e m e n t , a d j u s t m e n t , o r c o m p o s i t i o n a f f e c t i n g t h e O b l i g a t i o n s o r t h e r i g h t s
o f a n y H o l d e r t h e r e o f , o r t o a u t h o r i z e t h e T r u s t e e t o v o t e i n r e s p e c t o f t h e c l a i m o f a n y H o l d e r i n
a n y s u c h p r o c e e d i n g w i t h o u t t h e a p p r o v a l o f t h e H o l d e r s s o a f f e c t e d .
S e c t i o n 7 . 0 5 W a i v e r s . N o d e l a y o r o m i s s i o n t o e x e r c i s e a n y r i g h t o r p o w e r
a c c r u i n g u p o n a n y E v e n t o f D e f a u l t s h a l l i m p a i r a n y s u c h r i g h t o r p o w e r o r s h a l l b e c o n s t r u e d t o
b e a w a i v e r o f a n y s u c h E v e n t o f D e f a u l t o r a c q u i e s c e n c e t h e r e i n a n d e v e r y s u c h r i g h t a n d p o w e r
O H S U S A : 2 6 0 9 3 5 7 0 9 . 9 6 7
1 8 1
may be exercised from time to time and as often as may be deemed expedient. No waiver of any •
Event of Default hereunder shall extend to or shall affect any subsequent Event of Default or
shall impair any rights or remedies consequent thereon.
Section 7.06 Rights of Subordinate Lenders.
(a) Nothing in this Article VII or elsewhere in this Indenture shall be
construed to limit or preclude the exercise of any rights or remedies reserved by the trustee for
the Permitted Second Lien Obligations or by the trustee for or holder of any Subordinate
Obligations;
(b) From and after the occurrence of a Bankruptcy Related Event, if the
TIFIA Loan is then outstanding the TIFIA Lender may request, and the Trustee shall, upon
receiving adequate indemnity, potentially including indemnity provided by such TIFIA Lender,
proceed to protect and enforce the TIFIA Lender's rights by such appropriate judicial proceeding
as the Trustee shall deem most effectual to protect and enforce any such right, either by suit in
equity or by action at law, whether for the specific performance of any covenant or agreement
contained in this Indenture, or in aid of the exercise of any power granted in this Indenture, or to
enforce any other legal or equitable right vested in the TIFIA Lender as a third-party beneficiary
by this Indenture or by law. The provisions of this Indenture shall constitute a contract with the
TIFIA Lender and the duties of the Commission shall be enforceable by the Trustee on behalf of
the TIFIA Lender by mandamus or other appropriate suit, action or proceeding in any court of
competent jurisdiction. Nothing herein shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of the TIFIA Lender any plan of reorganization, •
arrangement, adjustment, or composition affecting the TIFIA Loan or the rights of the TIFIA
Lender, or to authorize the Trustee to vote in respect of the claim of the TIFIA Lender in any
such proceeding without the approval of the TIFIA Lender.
ARTICLE VIII
THE TRUSTEE
Section 8.01 Trustee. (a) The Bank of New York Mellon Trust Company,
N.A., will serve as the Trustee under this Indenture. The Trustee shall be required to perform
such duties and only such duties as are specifically set forth in this Indenture. The Trustee shall,
during the existence of any Event of Default (that has not been cured), exercise such of the rights
and powers vested in it by this Indenture, and use the same degree of care and skill in their
exercise, as reasonable persons would exercise or use under the circumstances in the conduct of
their own affairs. The Trustee accepts the duties imposed upon it hereunder and agrees,
particularly: (i) to hold all sums held by it for the payment of the principal and Purchase Price
of, premium, if any, or interest on the Obligations in trust for the benefit of the Holders of the
Obligations as provided herein until such sums shall be paid to such Holders of such Obligations
or otherwise disposed of as herein provided; (ii) to authenticate and cancel Senior Lien Bonds as
provided herein; (iii) to perform its obligations under this Indenture; and (iv) to keep such books
and records relating to its duties as Trustee as shall be consistent with reasonable industry
practice and to make such books and records available for inspection by the Commission at all •
reasonable times upon reasonable notice.
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T h e C o m m i s s i o n s h a l l c a u s e t h e n e c e s s a r y a r r a n g e m e n t s t o b e m a d e a n d t o b e
t h e r e a f t e r c o n t i n u e d w h e r e b y : ( i ) f u n d s d e r i v e d f r o m t h e s o u r c e s s p e c i f i e d i n t h i s I n d e n t u r e w i l l
b e m a d e a v a i l a b l e a t t h e P r i n c i p a l O f f i c e o f t h e T r u s t e e f o r t h e t i m e l y p a y m e n t o f p r i n c i p a l a n d
P u r c h a s e P r i c e 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 o n t h e O b l i g a t i o n s ; ( i i ) S e n i o r L i e n B o n d s s h a l l
b e m a d e a v a i l a b l e f o r a u t h e n t i c a t i o n , e x c h a n g e a n d r e g i s t r a t i o n o f t r a n s f e r b y t h e T r u s t e e a t t h e
P r i n c i p a l O f f i c e o f t h e T r u s t e e ; a n d ( i i i ) t h e T r u s t e e s h a l l b e f u r n i s h e d s u c h r e c o r d s a n d o t h e r
i n f o r m a t i o n , a t s u c h t i m e s , a s s h a l l b e 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 p e r f o r m t h e d u t i e s a n d
o b l i g a t i o n s i m p o s e d u p o n i t h e r e u n d e r .
( b ) N o p r o v i s i o n o f t h i s I n d e n t u r e s h a l l b e c o n s t r u e d t o r e l i e v e t h e T r u s t e e
f r o m l i a b i l i t y f o r i t s o w n n e g l i g e n t a c t i o n o r i t s o w n n e g l i g e n t f a i l u r e t o a c t , e x c e p t t h a t , a t a l l
t i m 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 a n y E v e n t o f D e f a u l t s h a l l e x i s t : ( i ) t h e d u t i e s a n d o b l i g a t i o n s
o f t h e T r u s t e e s h a l l b e d e t e r m i n e d s o l e l y b y t h e e x p r e s s p r o v i s i o n s o f t h i s I n d e n t u r e , a n d t h e
T r u s t e e s h a l l n o t b e l i a b l e e x c e p t f o r t h e p e r f o r m a n c e o f s u c h d u t i e s a n d o b l i g a t i o n s a s a r e
s p e c i f i c a l l y s e t f o r t h i n t h i s I n d e n t u r e , a n d n o i m p l i e d c o v e n a n t s o r o b l i g a t i o n s s h a l l b e r e a d i n t o
t h i s I n d e n t u r e a g a i n s t t h e T r u s t e e ; ( i i ) i n t h e a b s e n c e o f b a d f a i t h o n t h e p a r t o f t h e T r u s t e e , t h e
T r u s t e e m a y c o n c l u s i v e l y r e l y , a s t o t h e t r u t h o f t h e s t a t e m e n t s a n d t h e c o r r e c t n e s s o f t h e
o p i n i o n s e x p r e s s e d t h e r e i n , u p o n a n y c e r t i f i c a t e , n o t i c e , o r d e r , r e q u i s i t i o n , r e q u e s t , c o n s e n t o r
o p i n i o n f u r n i s h e d t o t h e T r u s t e e c o n f o r m i n g t o t h e r e q u i r e m e n t s o f t h i s I n d e n t u r e ; b u t i n t h e c a s e
o f a n y s u c h c e r t i f i c a t e , n o t i c e , o r d e r , r e q u i s i t i o n , r e q u e s t , c o n s e n t o r o p i n i o n w h i c h b y a n y
p r o v i s i o n h e r e o f i s s p e c i f i c a l l y r e q u i r e d t o b e f u r n i s h e d t o t h e T r u s t e e , t h e T r u s t e e s h a l l b e u n d e r
a d u t y t o e x a m i n e t h e s a m e t o d e t e r m i n e w h e t h e r o r n o t i t , o n i t s f a c e , c o n f o r m s t o t h e
r e q u i r e m e n t s o f t h i s I n d e n t u r e ; ( i i i ) t h e T r u s t e e s h a l l n o t b e l i a b l e f o r a n y e r r o r o f j u d g m e n t m a d e
i n g o o d f a i t h u n l e s s i t s h a l l b e p r o v e d t h a t t h e T r u s t e e w a s n e g l i g e n t i n a s c e r t a i n i n g t h e p e r t i n e n t
f a c t s ; a n d ( i v ) t h e T r u s t e e s h a l l n o t b e l i a b l e w i t h r e s p e c t t o a n y a c t i o n t a k e n o r o m i t t e d t o b e
t a k e n b y i t i n g o o d f a i t h i n a c c o r d a n c e w i t h t h e d i r e c t i o n o f t h e H o l d e r s o f n o t l e s s t h a n a
m a j o r i t y , o r s u c h l a r g e r o r s m a l l e r p e r c e n t a g e a s m a y b e r e q u i r e d h e r e u n d e r , i n B o n d O b l i g a t i o n
o f t h e S e n i o r L i e n B o n d s a t t h e t i m e O u t s t a n d i n g � r e l a t i n g t o t h e t i m e , m e t h o d a n d p l a c e o f
c o n d u c t i n g a n y p r o c e e d i n g f o r a n y r e m e d y a v a i l a b l e t o t h e T r u s t e e o r e x e r c i s i n g a n y t r u s t o r
p o w e r c o n f e r r e d u p o n t h e T r u s t e e u n d e r t h i s I n d e n t u r e . T h e p e r m i s s i v e r i g h t o f t h e T r u s t e e t o d o
t h i n g s e n u m e r a t e d i n t h i s I n d e n t u r e a s a r i g h t s h a l l n o t b e c o n s t r u e d a s a d u t y a n d t h e T r u s t e e
s h a l l n o t b e a n s w e r a b l e f o r o t h e r t h a n i t s n e g l i g e n c e o r w i l l f u l m i s c o n d u c t .
( c ) N o n e o f t h e p r o v i s i o n s c o n t a i n e d i n t h i s I n d e n t u r e s h a l l r e q u i r e t h e
T r u s t e e t o e x p e n d o r r i s k i t s o w n f u n d s o r o t h e r w i s e i n c u r i n d i v i d u a l f i n a n c i a l l i a b i l i t y i n t h e
p e r f o r m a n c e o f a n y o f i t s d u t i e s o r i n t h e e x e r c i s e o f a n y o f i t s r i g h t s o r p o w e r s . T h e T r u s t e e
s h a l l n o t b e r e q u i r e d t o g i v e a n y b o n d o r s u r e t y i n r e s p e c t o f t h e e x e c u t i o n o f t h e s a i d t r u s t s a n d
p o w e r s o r o t h e r w i s e i n r e s p e c t o f t h e p r e m i s e s . B e f o r e t a k i n g a n y a c t i o n u n d e r t h i s I n d e n t u r e
r e l a t i n g t o a n E v e n t o f D e f a u l t , t h e T r u s t e e m a y r e q u i r e t h a t a d e q u a t e i n d e m n i t y b e f u r n i s h e d f o r
t h e r e i m b u r s e m e n t o f a l l e x p e n s e s t o w h i c h i t m a y b e p u t a n d t o p r o t e c t i t a g a i n s t a l l l i a b i l i t y .
( d ) N o d e l i v e r y o f O b l i g a t i o n s t o t h e T r u s t e e o r p u r c h a s e o f O b l i g a t i o n s b y
t h e T r u s t e e s h a l l c o n s t i t u t e a r e d e m p t i o n o f O b l i g a t i o n s o r a n y e x t i n g u i s h m e n t o f t h e d e b t
r e p r e s e n t e d t h e r e b y , u n l e s s s u c h O b l i g a t i o n s a r e s u r r e n d e r e d b y t h e C o m m i s s i o n t o t h e T r u s t e e
f o r c a n c e l l a t i o n p u r s u a n t t o t h i s I n d e n t u r e ( i n c l u d i n g , w i t h r e s p e c t t o S e n i o r L i e n B o n d s , S e c t i o n
I O . O l ( b ) ) .
O H S U S A : 2 6 0 9 3 5 7 0 9 . 9 6 9
1 8 3
(e) The Trustee shall not be accountable for the use or application by the
Commission of the proceeds of the Obligations or for the use or application of any money paid •
over to the Commission by the Trustee in accordance with the provisions of this Indenture. The
Trustee shall have no responsibility or liability with respect to any information, statements or
recitals in any offering memorandum or other disclosure material prepared or distributed with
respect to the issuance of the Obligations other than information provided by theTrustee for use
therein, if any.
(f) Whenever in the administration of this Indenture the Trustee shall deem it
necessary or desirable that a matter be provided or established prior to taking or suffering any
action to be taken hereunder, such matter (unless other evidence in respect thereof be herein
specifically prescribed) may, in the absence of negligence or willful misconduct on the part of
the Trustee, be deemed to be conclusively proved and established by a Certificate of the
Commission and delivered to the Trustee and such certificate, in the absence of negligence or
willful misconduct on the part of the Trustee, shall be full warrant to the Trustee for any action
taken, suffered or omitted by it under the provisions of this Indenture upon the faith thereof.
(g) The Trustee may elect to accept and act upon instructions or directions
pursuant to this Indenture sent by facsimile or Electronic means, provided, however, that, the
Trustee shall have received an incumbency certificate listing persons designated to give such
instructions or directions and containing specimen signatures of such designated persons, which
such incumbency certificate shall be amended and replaced whenever a person is to be added or
deleted from the listing. If the Commission elects to give the Trustee facsimile or Electronic
instructions and the Trustee in its discretion elects to act upon such instructions, the Trustee's •
understanding of such instructions shall be deemed controlling in the absence of its negligence or
willful misconduct. The Trustee shall not be liable for any losses, costs or expenses arising
directly or indirectly from the Trustee's reliance upon and compliance with such instructions
notwithstanding such instructions conflict or are inconsistent with a subsequent written
instruction. In the absence of negligence or willful misconduct by the Trustee, the Commission
agrees to assume all risks arising out of the use of such facsimile or Electronic methods to submit
instructions and directions to the Trustee, including without limitation the risk of the Trustee
acting on unauthorized instructions, and the risk of interception and misuse by third parties.
Section 8.02 Compensation and Indemnification of Trustee. The
Commission shall: (i) pay the Trustee reasonable compensation (which, to the extent permitted
by applicable law, shall not be limited by any law limiting the compensation of the trustee of an
express trust); (ii) pay or reimburse the Trustee upon request for all reasonable fees, expenses,
disbursements and advances incurred or made in accordance with any of the provisions of this
Indenture (including the reasonable compensation and the expenses and disbursements of its
counsel and of all agents and other persons not regularly in its employ), except to the extent that
any such expense, disbursement or advance is due to its own negligence or willful misconduct;
and (iii) to the extent permitted by applicable law, indemnify the Trustee and its officers,
directors, agents and employees for, and to hold it harmless against, any loss, liability, cost, suit,
claim, judgment, damage or expense incurred by it, arising out of or in connection with the
acceptance or administration of this Indenture or the performance of its duties hereunder,
including legal fees and expenses and the costs and expenses of defending itself against or •
investigating any claim of liability or expense, except to the extent that any such liability or
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e x p e n s e w a s d u e t o i t s o w n n e g l i g e n c e o r w i l l f u l m i s c o n d u c t . T h e o b l i g a t i o n s o f t h e
C o m m i s s i o n u n d e r t h i s S e c t i o n 8 . 0 2 s h a l l s u r v i v e t h e s a t i s f a c t i o n a n d d i s c h a r g e o f t h i s I n d e n t u r e
a n d t h e e a r l i e r r e m o v a l o r r e s i g n a t i o n o f t h e T r u s t e e . W h e n t h e T r u s t e e i n c u r s e x p e n s e s o r
r e n d e r s s e r v i c e s a f t e r t h e o c c u r r e n c e o f a n E v e n t o f D e f a u l t , s u c h e x p e n s e s a n d t h e c o m p e n s a t i o n
f o r s u c h s e r v i c e s a r e i n t e n d e d t o c o n s t i t u t e e x p e n s e s o f a d m i n i s t r a t i o n u n d e r a n y f e d e r a l o r s t a t e
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 , r e o r g a n i z a t i o n o r o t h e r d e b t o r r e l i e f l a w .
S e c t i o n 8 . 0 3 Q u a l i f i c a t i o n s o f T r u s t e e ; R e s i g n a t i o n ; R e m o v a l .
( a ) T h e r e s h a l l a t a l l t i m e s b e a t r u s t e e h e r e u n d e r t h a t i s a c o m m e r c i a l b a n k ,
t r u s t c o m p a n y o r n a t i o n a l a s s o c i a t i o n o r g a n i z e d a n d d o i n g b u s i n e s s u n d e r t h e l a w s o f t h e U n i t e d
S t a t e s o r o f a s t a t e t h e r e o f , a u t h o r i z e d u n d e r s u c h l a w s t o e x e r c i s e c o r p o r a t e t r u s t p o w e r s , h a v i n g
( o r i f s u c h b a n k , t r u s t c o m p a n y o r n a t i o n a l a s s o c i a t i o n i s a m e m b e r o f a b a n k h o l d i n g c o m p a n y
s y s t e m , i t s h o l d i n g c o m p a n y h a s ) a c o m b i n e d c a p i t a l a n d s u r p l u s o f a t l e a s t f i v e h u n d r e d m i l l i o n
d o l l a r s ( $ 5 0 0 , 0 0 0 ; 0 0 0 ) , a n d s u b j e c t t o s u p e r v i s i o n o r e x a m i n a t i o n b y f e d e r a l o r s t a t e a u t h o r i t y .
I f s u c h b a n k s , t r u s t c o m p a n i e s , o r b a n k i n g a s s o c i a t i o n s p u b l i s h r e p o r t s o f c o n d i t i o n a t l e a s t
a n n u a l l y , p u r s u a n t t o l a w o r t o t h e r e q u i r e m e n t s o f a n y s u p e r v i s i n g o r e x a m i n i n g a u t h o r i t y a b o v e
r e f e r r e d t o , t h e n , f o r t h e p u r p o s e s o f t h i s S e c t i o n 8 . 0 3 , t h e c o m b i n e d c a p i t a l a n d s u r p l u s o f s u c h
b a n k s , t r u s t c o m p a n i e s o r b a n k i n g a s s o c i a t i o n s s h a l l b e d e e m e d t o b e t h e i r c o m b i n e d c a p i t a l a n d
s u r p l u s a s s e t f o r t h i n t h e i r m o s t r e c e n t r e p o r t s o f c o n d i t i o n s s o p u b l i s h e d .
( b ) T h e T r u s t e e m a y a t a n y t i m e r e s i g n b y g i v i n g a t l e a s t t h i r t y ( 3 0 ) d a y s '
w r i t t e n n o t i c e t o t h e C o m m i s s i o n . U p o n r e c e i v i n g s u c h n o t i c e o f r e s i g n a t i o n , t h e C o m m i s s i o n ,
s h a l l p r o m p t l y a p p o i n t a s u c c e s s o r t r u s t e e b y a n i n s t r u m e n t i n w r i t i n g . I f n o s u c c e s s o r t r u s t e e
s h a l l h a v e b e e n s o a p p o i n t e d a n d h a v e a c c e p t e d a p p o i n t m e n t w i t h i n t h i r t y ( 3 0 ) d a y s a f t e r t h e
g i v i n g o f s u c h n o t i c e o f r e s i g n a t i o n , t h e r e s i g n i n g t r u s t e e m a y p e t i t i o n a n y c o u r t o f c o m p e t e n t
j u r i s d i c t i o n f o r t h e a p p o i n t m e n t o f a s u c c e s s o r t r u s t e e , o r a n y H o l d e r w h o h a s b e e n a b o n a f i d e
H o l d e r o f a S e n i o r L i e n B o n d f o r a t l e a s t s i x m o n t h s m a y , o n b e h a l f o f i t s e l f a n d a n y o t h e r s
s i m i l a r l y s i t u a t e d , p e t i t i o n a n y s u c h c o u r t f o r t h e a p p o i n t m e n t o f a s u c c e s s o r t r u s t e e . S u c h c o u r t
m a y t h e r e u p o n , a f t e r s u c h n o t i c e , i f a n y , a s i t m a y d e e m p r o p e r a n d p r e s c r i b e , a p p o i n t a
s u c c e s s o r t r u s t e e .
( c ) I n c a s e a t a n y t i m e e i t h e r o f t h e f o l l o w i n g s h a l l o c c u r : ( i ) t h e T r u s t e e s h a l l
c e a s e t o b e e l i g i b l e i n a c c o r d a n c e w i t h 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 8 . 0 3 a n d s h a l l f a i l t o r e s i g n
a f t e r w r i t t e n r e q u e s t t h e r e f o r b y t h e C o m m i s s i o n o r b y a n y H o l d e r w h o h a s b e e n a b o n a f i d e
H o l d e r o f a S e n i o r L i e n B o n d f o r a t l e a s t s i x m o n t h s ; o r ( i i ) t h e T r u s t e e s h a l l b e c o m e i n c a p a b l e
o f a c t i n g , o r s h a l l b e a d j u d g e d a b a n k r u p t o r i n s o l v e n t , o r a r e c e i v e r o f t h e T r u s t e e o r o f i t s
p r o p e r t y s h a l l b e a p p o i n t e d , o r a n y p u b l i c o f f i c e r s h a l l t a k e c h a r g e o r c o n t r o l o f t h e T r u s t e e o r o f
i t s p r o p e r t y o r a f f a i r s f o r t h e p u r p o s e o f r e h a b i l i t a t i o n , c o n s e r v a t i o n o r l i q u i d a t i o n , t h e n , i n a n y
s u c h c a s e , t h e C o m m i s s i o n m a y r e m o v e t h e T r u s t e e a n d a p p o i n t a s u c c e s s o r t r u s t e e b y a n
i n s t r u m e n t i n w r i t i n g e x e c u 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 r a n y H o l d e r w h o h a s b e e n a
b o n a f i d e H o l d e r o f a S e n i o r L i e n B o n d f o r a t l e a s t s i x m o n t h s m a y , o n b e h a l f o f i t s e l f a n d a l l
o t h e r s s i m i l a r l y s i t u a t e d , p e t i t i o n a n y c o u r t o f c o m p e t e n t j u r i s d i c t i o n f o r t h e r e m o v a l o f t h e
T r u s t e e a n d t h e a p p o i n t m e n t o f a s u c c e s s o r t r u s t e e . S u c h c o u r t m a y t h e r e u p o n , a f t e r s u c h n o t i c e ,
i f a n y , a s i t m a y d e e m p r o p e r a n d p r e s c r i b e , r e m o v e t h e T r u s t e e a n d a p p o i n t a s u c c e s s o r t r u s t e e .
I f n o s u c c e s s o r t r u s t e e s h a l l h a v e b e e n s o 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 h a v e a c c e p t e d
a p p o i n t m e n t w i t h i n t h i r t y ( 3 0 ) d a y s a f t e r s u c h r e m o v a l , t h e T r u s t e e m a y p e t i t i o n a n y c o u r t o f
O H S U S A : 2 6 0 9 3 5 7 0 9 . 9 7 1
1 8 5
competent jurisdiction for the appointment of a successor trustee, or any Holder who has been a •
bona fide Holder of a Senior Lien Bond for at least six months may, on behalf of itself and any
others similarly situated, petition any such court for the appointment of a successor trustee.
(d) The Commission or Holders of a majority in Bond Obligation of the
Senior Lien Bonds at the time Outstanding (or, if no Senior Lien Bonds are then Outstanding,
then the Holders of not less than a majority of the Bond Obligation of the Permitted Second Lien
Obligations and Subordinate Obligations then Outstanding) may at any time remove the Trustee
and appoint a successor trustee by an instrument or concurrent instruments in writing signed by
an Authorized Representative of the Commission or by such Holders, as the case may be.
(e) Any resignation or removal of the Trustee and appointment of a successor
trustee pursuant to any of the provisions of this Section 8.03 shall become effective upon written
acceptance of appointment by the successor trustee acceptable to the Commission. Any
successor trustee shall execute, acknowledge and deliver to the Commission and to its
predecessor trustee an instrument accepting such appointment hereunder, and thereupon the
resignation or removal of the predecessor trustee shall become effective and such successor
trustee, without any further act, deed or conveyance, shall become vested with all the rights,
powers, trusts, duties and obligations of its predecessor in the trusts hereunder, with like effect as
if originally named as Trustee herein; but, nevertheless, on the Written R,equest of the
Commission or the request of the successor trustee, the predecessor trustee ceasing to act shall
execute and deliver an instrument transferring to such successor trustee, upon the trusts herein
expressed, all the rights, powers and trusts of the trustee so ceasing to act. Upon request of any
such successor trustee, the Commission shall execute any and all instruments in writing •
necessary or desirable for more fully and certainly vesting in and confirming to such successor
trustee all such rights, powers and duties. No successor trustee shall accept appointment as
provided in this Section 8.03 unless at the time of such acceptance such successor trustee shall be
eligible under the provisions of this Section 8.03. Upon acceptance of appointment by a
successor trustee as provided in this Section 8.03, the Commission or such successor trustee shall
give Holders notice of the succession of such trustee to the trusts hereunder.
(f) Any company into which the Trustee may be merged or converted or with
which it may be consolidated or any company resulting from any merger, conversion or
consolidation to which it shall be a party or any company to which the Trustee may sell or
transfer all or substantially all of its corporate trust business, provided such company shall be
eligible under this Section 8.03 and acceptable to the Commission, shall be the successor to such
Trustee without the execution or filing of any paper or any further act, anything herein to the
contrary notwithstanding.
(g) In the event of the resignation or removal of the Trustee, the Trustee shall
deliver any money and any Obligations and its related hooks and records held by it in such
capacity to its successor.
(h) The Trustee may execute any of the trusts or powers hereof and perform
any of its duties and responsibilities hereunder by or through attorneys, agents or receivers,
including issuing and paying agents as provided in Section 8.05, and the Trustee shall not be •
answerable for the conduct of the same if appointed with due care hereunder, provided that the
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T r u s t e e s h a l l r e m a i n r e s p o n s i b l e f o r i t s d u t i e s h e r e u n d e r . T h e T r u s t e e m a y c o n s u l t w i t h c o u n s e l
a n d t h e a d v i c e o r a n y o p i n i o n o f c o u n s e l s h a l l b e f u l l a n d c o m p l e t e a u t h o r i z a t i o n a n d p r o t e c t i o n
i n r e s p e c t o f a n y a c t i o n t a k e n o r o m i t t e d b y i t h e r e u n d e r i n t h e a b s e n c e o f n e g l i g e n c e a n d w i l l f u l
m i s c o n d u c t a n d i n a c c o r d a n c e w i t h s u c h a d v i c e o r o p i n i o n o f c o u n s e l .
S e c t i o n 8 . 0 4 I n s t r u m e n t o f B o n d h o l d e r s . A n y i n s t r u m e n t r e q u i r e d b y t h i s
I n d e n t u r e t o b e e x e c u t e d b y B o n d h o l d e r s m a y b e i n a n y n u m b e r o f w r i t i n g s o f s i m i l a r t e n o r a n d
m a y b e e x e c u t e d b y B o n d h o l d e r s i n p e r s o n o r b y a g e n t a p p o i n t e d i n w r i t i n g . P r o o f o f t h e
e x e c u t i o n o f a n y s u c h i n s t r u m e n t o r o f t h e w r i t i n g a p p o i n t i n g a n y s u c h a g e n t a n d o f t h e
o w n e r s h i p o f O b l i g a t i o n s g i v e n i n a n y o f t h e f o l l o w i n g f o r m s s h a l l b e s u f f i c i e n t f o r a n y o f t h e
p u r p o s e s o f t h i s I n d e n t u r e : ( i ) a c e r t i f i c a t e o f a n y o f f i c e r i n a n y j u r i s d i c t i o n w h o b y l a w h a s
p o w e r t o t a k e a c k n o w l e d g e m e n t s w i t h i n s u c h j u r i s d i c t i o n t h a t t h e p e r s o n s i g n i n g s u c h w r i t i n g
a c k n o w l e d g e d b e f o r e h i m t h e e x e c u t i o n t h e r e o f ; o r ( i i ) a c e r t i f i c a t e e x e c u t e d b y a n y t r u s t
c o m p a n y o r b a n k s t a t i n g t h a t a t t h e d a t e t h e r e o f t h e p a r t y n a m e d t h e r e i n d i d e x h i b i t t o a n o f f i c e r
o f s u c h t r u s t c o m p a n y o r b a n k , a s t h e p r o p e r t y o f s u c h p a r t y , t h e S e n i o r L i e n B o n d s t h e r e i n
m e n t i o n e d .
T h e T r u s t e e m a y r e l y o n s u c h a n i n s t r u m e n t o f B o n d h o l d e r s u n l e s s a n d u n t i l t h e
T r u s t e e r e c e i v e s n o t i c e i n t h e f o r m s p e c i f i e d i n ( i ) o r ( i i ) a b o v e t h a t t h e o r i g i n a l s u c h i n s t r u m e n t
i s n o l o n g e r r e l i a b l e . I n t h e e v e n t t h a t t h e T r u s t e e s h a l l r e c e i v e c o n f l i c t i n g d i r e c t i o n s f r o m t w o o r
m o r e g r o u p s o f B o n d h o l d e r s , e a c h w i t h c o m b i n e d h o l d i n g s o f n o t l e s s t h a n t w e n t y - f i v e p e r c e n t
( 2 5 % ) o f t h e p r i n c i p a l a m o u n t o f O u t s t a n d i n g S e n i o r L i e n B o n d s , t h e d i r e c t i o n s g i v e n b y t h e
g r o u p o f B o n d h o l d e r s t h a t h o l d s t h e l a r g e s t p e r c e n t a g e o f S e n i o r L i e n B o n d s s h a l l b e c o n t r o l l i n g
a n d t h e T r u s t e e s h a l l f o l l o w s u c h d i r e c t i o n s t o t h e e x t e n t r e q u i r e d h e r e i n . T h e T r u s t e e s h a l l h a v e
n o l i a b i l i t y p r o v i d e d i t i s f o l l o w i n g t h e i n s t r u c t i o n s o f s u c h B o n d h o l d e r s p e r m i t t e d t o d i r e c t t h e
T r u s t e e p u r s u a n t t o t h i s I n d e n t u r e .
S e c t i o n 8 . 0 5 I s s u i n g a n d P a y i n g A g e n t s . T h e C o m m i s s i o n m a y a p p o i n t a n d a t
a l l t i m e s h a v e o n e o r m o r e i s s u i n g a n d p a y i n g a g e n t s i n s u c h p l a c e o r p l a c e s a s t h e C o m m i s s i o n
m a y d e s i g n a t e , f o r t h e p a y m e n t o f a S e r i e s o f O b l i g a t i o n s . S u c h i s s u i n g a n d p a y i n g a g e n t s h a l l
m e e t t h e q u a l i f i c a t i o n s f o r t h e T r u s t e e a n d t h e p r o c e d u r e s a n d c o n d i t i o n s f o r r e m o v a l a n d
r e s i g n a t i o n s e t f o r t h i n S e c t i o n 8 . 0 3 h e r e o f . I t s h a l l b e t h e d u t y o f t h e T r u s t e e t o m a k e s u c h
a r r a n g e m e n t s w i t h a n y s u c h i s s u i n g a n d p a y i n g a g e n t a s m a y b e n e c e s s a r y t o a s s u r e , t o t h e e x t e n t
o f t h e m o n e y s h e l d b y t h e T r u s t e e f o r s u c h p a y m e n t , t h e p r o m p t p a y m e n t o f O b l i g a t i o n s
p r e s e n t e d a t e i t h e r p l a c e o f p a y m e n t .
A R T I C L E I X
A M E N D M E N T S
S e c t i o n 9 . 0 1 A m e n d m e n t s t o I n d e n t u r e N o t R e q u i r i n g C o n s e n t o f
B o n d h o l d e r s . E x c e p t t o t h e e x t e n t r e s t r i c t 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 , t h e C o m m i s s i o n a n d
t h e T r u s t e e , w i t h o u t t h e c o n s e n t o f o r n o t i c e t o a n y B o n d h o l d e r s , m a y e x e c u t e S u p p l e m e n t a l
I n d e n t u r e s a m e n d i n g t h i s I n d e n t u r e f o r o n e o r m o r e o f t h e f o l l o w i n g p u r p o s e s :
O H S U S A : 2 6 0 9 3 5 7 0 9 . 9 7 3
1 8 7
(a) to grant to or confer upon the Trustee for the benefit of the Holders of any
Series of Obligations or of all Obligations any additional rights, remedies, powers or authority •
that may lawfully be granted to or conferred upon the Trustee;
(b) to grant or pledge to the Trustee for the benefit of the Holders of any
Series of Obligations or of all Obligations any additional security;
(c) to amend this Indenture in such manner as may be necessary or convenient
in connection with the book-entry system for payments, transfers and other matters relating to
the Obligations;
(d) to cure any ambiguity, supply any omission, or to correct or supplement
any provision of the Indenture that, in the Opinion of Bond Counsel, is defective or inconsistent
with any other provision of the Indenture;
(e) to insert such provisions clarifying matters or questions arising under the
Indenture as are necessary or desirable and are not contrary to or inconsistent with the Indenture
as theretofore in effect;
(f) to make any change therein necessary, in the Opinion of Bond Counsel, to
maintain the exclusion from gross income for federal income tax purposes of the interest on any
Outstanding Obligations intended by the Commission to bear federally tax-exempt interest;
(g) to modify, amend or supplement this Indenture or any Supplemental
Indenture in such manner as to permit, if presented, the qualification hereof and thereof under the •
Trust Indenture Act of 1939 or any similar federal statute hereafter in effect or under any state
blue sky law;
(h) to make modifications or adjustments necessary in order to accommodate
a Credit Support Instrument or a Reserve Facility;
(i) to modify, alter, amend or supplement this Indenture if (1) all of the
Obligations to be affected thereby are variable interest rate obligations, (2) the modification,
alteration, amendment or supplement shall not become effective until written notice thereof shall
have been given to Bondholders of the affected Series by the Trustee, and (3) thirty (30) days
shall have passed during which time such Bondholders shall have had the opportunity to tender
their variable interest rate bonds for purchase;
G) to make any change therein that does not materially and adversely affect
the rights of the Holders of the Obligations (and the absence of a material or adverse effect may,
but is not required to, be evidenced by a Certificate of the Commission or an Opinion of Bond
Counsel delivered pursuant to Section 9.04); and
(k) to issue additional Obligations hereunder in accordance with the terms
hereof, including to specify and determine the lien status of a Series of Obligations or, if
applicable, the springing lien status of a Series of Obligations and also any other matters and
things relative to such Obligations which are not contrary to or inconsistent with this Indenture
OHSUSA:260935709.9 74
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a s t h e r e t o f o r e i n e f f e c t , o r t o a m e n d , m o d i f y o r r e s c i n d a n y s u c h a u t h o r i z a t i o n , s p e c i f i c a t i o n o r
d e t e r m i n a t i o n a t a n y t i m e p r i o r t o t h e o r i g i n a l i s s u a n c e o f s u c h O b l i g a t i o n s ;
p r o v i d e d , t h a t n o s u c h a m e n d m e n t m a y p e r m i t , o r b e c o n s t r u e d a s p e r m i t t i n g , ( i ) a n e x t e n s i o n o f
t h e m a t u r i t y o f t h e p r i n c i p a l o f , o r t h e m a n d a t o r y r e d e m p t i o n d a t e o f , o r i n t e r e s t o n , a n y
O b l i g a t i o n , o r ( i i ) a r e d u c t i o n i n t h e p r i n c i p a l a m o u n t o f , o r t h e r e d e m p t i o n p r e m i u m o r t h e r a t e
o f i n t e r e s t o n , a n y O b l i g a t i o n , o r ( i i i ) a p r e f e r e n c e o r p r i o r i t y o f a n y S e n i o r L i e n B o n d o r S e n i o r
L i e n B o n d s o r P a r i t y O b l i g a t i o n s o v e r a n y o t h e r S e n i o r L i e n B o n d o r S e n i o r L i e n B o n d s o r
P a r i t y O b l i g a t i o n s , o r ( i v ) a p r e f e r e n c e o r p r i o r i t y o f a n y P e r m i t t e d S e c o n d L i e n O b l i g a t i o n o r
P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s o v e r a n y o t h e r P e r m i t t e d S e c o n d L i e n O b l i g a t i o n o r
P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s o r S e n i o r L i e n B o n d o r P a r i t y O b l i g a t i o n , o r ( v ) a p r e f e r e n c e
o r p r i o r i t y o f a n y S u b o r d i n a t e O b l i g a t i o n o r S u b o r d i n a t e O b l i g a t i o n s o v e r a n y o t h e r S u b o r d i n a t e
O b l i g a t i o n o r S u b o r d i n a t e O b l i g a t i o n , P e r m i t t e d S e c o n d L i e n O b l i g a t i o n o r S e n i o r L i e n B o n d o r
P a r i t y O b l i g a t i o n ( e x c e p t a s o t h e r w i s e p r o v i d e d h e r e i n w i t h r e s p e c t t o S u b o r d i n a t e O b l i g a t i o n s
i n t h e f o r m o f o r s e c u r i n g p a y m e n t o f a T I F I A L o a n h e l d b y t h e T I F I A L e n d e r ) o r ( v i ) a
r e d u c t i o n i n t h e B o n d O b l i g a t i o n o f t h e S e n i o r L i e n B o n d s r e q u i r e d f o r a n y c o n s e n t t o a n y
a m e n d m e n t p u r s u a n t t o S e c t i o n 9 . 0 2 .
S e c t i o n 9 . 0 2 A m e n d m e n t s t o I n d e n t u r e R e q u i r i n g C o n s e n t o f B o n d h o l d e r s
a n d T I F I A L e n d e r . E x c l u s i v e o f a m e n d m e n t s a u t h o r i z e d b y S e c t i o n 9 . 0 1 a n d s u b j e c t t o t h e
t e r m s a n d p r o v i s i o n s c o n t a i n e d i n t h i s S e c t i o n 9 . 0 2 a n d i n a n y S u p p l e m e n t a l I n d e n t u r e , a n d
f u r t h e r s u b j e c t . a t a l l t i m e s p r i o r t o r e p a y m e n t o f e a c h S u b o r d i n a t e O b l i g a t i o n i n t h e f o r m o f o r
s e c u r i n g p a y m e n t o f a T I F I A L o a n i n f u l l p u r s u a n t t o i t s t e r m s t o r e c e i p t o f w r i t t e n c o n s e n t f r o m
t h e T I F I A L e n d e r , t h e H o l d e r s o f a t l e a s t a m a j o r i t y i n a g g r e g a t e B o n d O b l i g a t i o n o f t h e
O b l i g a t i o n s O u t s t a n d i n g a t t h e t i m e s u c h c o n s e n t i s g i v e n , a n d i n c a s e l e s s t h a n a l l o f t h e s e v e r a l
S e r i e s o f 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 r e a f f e c t e d b y t h e m o d i f i c a t i o n o r a m e n d m e n t , o f t h e
H o l d e r s o f a t l e a s t a m a j o r i t y i n a g g r e g a t e B o n d O b l i g a t i o n o f t h e O b l i g a t i o n s o f e a c h S e r i e s s o
a f f e c t e d a n d O u t s t a n d i n g a t t h e t i m e s u c h c o n s e n t i s g i v e n ( p r o v i d e d , h o w e v e r , t h a t i f s u c h
m o d i f i c a t i o n o r a m e n d m e n t w i l l , b y i t s t e r m s , n o t t a k e e f f e c t s o l o n g a s a n y O b l i g a t i o n s o f a n y
p a r t i c u l a r S e r i e s a n d m a t u r i t y r e m a i n O u t s t a n d i n g , t h e c o n s e n t o f t h e H o l d e r s o f s u c h
O b l i g a t i o n s s h a l l n o t b e r e q u i r e d a n d s u c h O b l i g a t i o n s s h a l l n o t b e d e e m e d t o b e O u t s t a n d i n g f o r
t h e p u r p o s e o f a n y c a l c u l a t i o n o f O u t s t a n d i n g O b l i g a t i o n s u n d e r t h i s S e c t i o n 9 . 0 2 ) s h a l l h a v e t h e
r i g h t , f r o m t i m e t o t i m e , a n y t h i n g c o n t a i n e d i n t h i s I n d e n t u r e t o t h e c o n t r a r y n o t w i t h s t a n d i n g , t o
c o n s e n t t o s u c h o t h e r a m e n d m e n t s h e r e t o f o r t h e p u r p o s e o f m o d i f y i n g , a l t e r i n g , a m e n d i n g , o r
s u p p l e m e n t i n g a n y o f t h e t e r m s o r p r o v i s i o n s c o n t a i n e d i n t h i s I n d e n t u r e o r i n a n y S u p p l e m e n t a l
I n d e n t u r e ; p r o v i d e d , h o w e v e r , t h a t n o t h i n g i n t h i s S e c t i o n 9 . 0 2 s h a l l p e r m i t , o r b e c o n s t r u e d a s
p e r m i t t i n g ( i ) a n e x t e n s i o n o f t h e m a t u r i t y o f t h e p r i n c i p a l o f , o r t h e m a n d a t o r y r e d e m p t i o n d a t e
o f , o r i n t e r e s t o n , a n y O b l i g a t i o n , o r ( i i ) a r e d u c t i o n i n t h e p r i n c i p a l a m o u n t o f , o r t h e r e d e m p t i o n
p r e m i u m o r t h e r a t e o f i n t e r e s t o n , a n y O b l i g a t i o n , o r ( i i i ) a p r e f e r e n c e o r p r i o r i t y o f a n y S e n i o r
L i e n B o n d o r S e n i o r L i e n B o n d s o v e r a n y o t h e r S e n i o r L i e n B o n d o r S e n i o r L i e n B o n d s , o r ( i v )
a p r e f e r e n c e o r p r i o r i t y o f a n y P e r m i t t e d S e c o n d L i e n O b l i g a t i o n o r P e r m i t t e d S e c o n d L i e n
O b l i g a t i o n s o v e r a n y o t h e r P e r m i t t e d S e c o n d L i e n O b l i g a t i o n o r P e r m i t t e d S e c o n d L i e n
O b l i g a t i o n s o r S e n i o r L i e n B o n d , o r ( v ) a p r e f e r e n c e o r p r i o r i t y o f a n y S u b o r d i n a t e O b l i g a t i o n o r
S u b o r d i n a t e O b l i g a t i o n s o v e r a n y o t h e r S u b o r d i n a t e O b l i g a t i o n o r S u b o r d i n a t e O b l i g a t i o n ,
P e r m i t t e d S e c o n d L i e n O b l i g a t i o n o r S e n i o r L i e n B o n d ( e x c e p t a s o t h e r w i s e p r o v i d e d h e r e i n
w i t h r e s p e c t t o S u b o r d i n a t e O b l i g a t i o n s i n t h e f o r m o f o r s e c u r i n g p a y m e n t o f a T I F I A L o a n h e l d
O H S U S A : 2 6 0 9 3 5 7 0 9 . 9 7 5
1 8 9
by the TIFIA Lender) or (vi) a reduction in the Bond Obligation of the Obligations required for
any consent to any amendment. . •
Section 9.03 Notice to and Consent of Bondholders. If consent of the
Bondholders is required under the terms of this Indenture for the amendment of this Indenture or
for any other similar purpose, the Commission shall cause notice of the proposed amendment to
be given by first-class mail to the Holders of the Outstanding Obligations then shown on the
registration books for the Obligations. Such notice shall briefly set forth the nature of the
proposed amendment or other action and shall state that copies of any such amendment are on
file at the office of the Commission and the Principal Office of the Trustee for inspection by all
Bondholders. If, within sixty ( 60) days or such longer period as shall be prescribed by the
Commission following the mailing of such notice, the Holders of the requisite principal amount
of the Obligations Outstanding by instruments filed with the Commission shall have consented to
the amendment or other proposed action, then the Commission may adopt or execute, as
appropriate, such amendment or take such proposed action and the consent of the Bondholders
shall thereby be conclusively presumed. Such instruments filed with the Commission may
include documents, including Certificates of the Commission, stating that Holders of Obligations
have consented to an amendment by purchasing such Obligations if the official statement or
other disclosure document related to such purchase disclosed that the purchase of the Obligations
was deemed to mean that the Holders consented to the amendment.
Section 9.04 Execution and Effect of Supplemental Indentures.. Prior to
executing any Supplemental Indenture hereunder, the Trustee shall be entitled to receive and rely
upon an Opinion of Bond Counsel to the effect that such Supplemental Indenture is authorized or •
permitted hereunder. The Trustee is not obligated to execute any Supplemental Indenture
adversely affecting its rights, duties protections and immunities hereunder. The Trustee shall not
execute any Supplemental Indenture materially affecting the priority of payment of any
Permitted Second Lien Obligation or the rights and obligations of the holders of any Permitted
Second Lien Obligation without the prior written consent of the trustee for or required holders of
such Permitted Second Lien Obligation. The Trustee shall not execute any Supplemental
Indenture materially affecting the priority of payment of any Subordinate Obligation or the rights
or obligations of the holder of any Subordinate Obligation without the prior written consent of
the trustee for or required holders of such Subordinate Obligation. Upon the execution and
delivery of any Supplemental Indenture pursuant to this Article IX, this Indenture shall be
deemed to be modified and amended in accordance therewith, and the respective rights, duties
and obligations under this Indenture of the Commission, the Trustee and all Owners of
Outstanding Senior Lien Bonds shall thereafter be determined, exercised and enforced subject in
all respects to such modification and amendment, and all the terms and conditions of any such
Supplemental Indenture shall be deemed to be part of the terms and conditions of this Indenture
for any and all purposes.
Section 9.05 Obligations Owned by Commission. (a) For purposes of this
Article IX, Obligations owned or held by or for the account of the Commission shall not be
deemed Outstanding for the purpose of consent or other action or any calculation of Outstanding
Obligations provided for in this Article IX, and the Commission shall not be entitled with respect
to such Obligations to give any consent or take any other action provided for in this Article IX; •
except that in determining whether the Trustee shall be protected in relying upon any such
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a p p r o v a l o r c o n s e n t o f a H o l d e r , o n l y O b l i g a t i o n s w h i c h t h e T r u s t e e a c t u a l l y k n o w s t o b e o w n e d
b y t h e C o m m i s s i o n s h a l l b e d i s r e g a r d e d u n l e s s a l l O b l i g a t i o n s a r e o w n e d o r h e l d b y o r f o r t h e
a c c o u n t o f t h e C o m m i s s i o n , i n w h i c h c a s e s u c h O b l i g a t i o n s s h a l l b e c o n s i d e r e d O u t s t a n d i n g f o r
t h e p u r p o s e o f s u c h d e t e r m i n a t i o n . U p o n r e q u e s t o f t h e T r u s t e e , a t t h e t i m e o f a n y c o n s e n t o r
o t h e r a c t i o n i s t o b e t a k e n u n d e r t h i s A r t i c l e I X , 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 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 , u p o n w h i c h t h e T r u s t e e m a y r e l y , d e s c r i b i n g a l l S e n i o r
O b l i g a t i o n s s o t o b e e x c l u d e d .
( b ) T h e p u r c h a s e o r o t h e r a c q u i s i t i o n o f O b l i g a t i o n s b y o r o n b e h a l f o f t h e
C o m m i s s i o n s h a l l n o t c a n c e l , e x t i n g u i s h , o r o t h e r w i s e a f f e c t t h e O b l i g a t i o n s u n l e s s s u c h
O b l i g a t i o n s a r e s u r r e n d e r e d b y t h e C o m m i s s i o n t o t h e T r u s t e e f o r c a n c e l l a t i o n i n a c c o r d a n c e
w i t h S e c t i o n 1 0 . 0 1 ( b ) .
A R T I C L E X
D I S C H A R G E O F L I E N
S e c t i o n 1 0 . 0 1 D i s c h a r g e o f L i e n a n d S e c u r i t y I n t e r e s t . ( a ) A t t h e e l e c t i o n o f
t h e C o m m i s s i o n , u p o n p a y m e n t i n f u l l o f a l l t h e O b l i g a t i o n s a n d o f a l l o t h e r a m o u n t s p a y a b l e
u n d e r t h i s I n d e n t u r e , t h e p l e d g e a n d l i e n o n t h e T r u s t E s t a t e a r i s i n g u n d e r t h i s I n d e n t u r e s h a l l
c e a s e , d e t e r m i n e a n d b e v o i d ; p r o v i d e d , h o w e v e r , s u c h d i s c h a r g e o f t h i s I n d e n t u r e s h a l l n o t
t e r m i n a t e t h e p o w e r s a n d r i g h t s g r a n t e d t o t h e T r u s t e e w i t h r e s p e c t t o t h e p a y m e n t , t r a n s f e r a n d
e x c h a n g e o f t h e O b l i g a t i o n s , a n d S e c t i o n 8 . 0 2 s h a l l s u r v i v e h e r e u n d e r .
( b ) T h e C o m m i s s i o n m a y a t a n y t i m e 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
a n y O b l i g a t i o n s p r e v i o u s l y a u t h e n t i c a t e d a n d d e l i v e r e d h e r e u n d e r t h a t t h e C o m m i s s i o n a t i t s
o p t i o n m a y h a v e a c q u i r e d i n a n y m a n n e r w h a t s o e v e r a n d s u c h O b l i g a t i o n s u p o n s u c h s u r r e n d e r
a n d c a n c e l l a t i o n s h a l l b e d e e m e d t o b e p a i d a n d r e t i r e d .
( c ) 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 i n t h e I n d e n t u r e t o t h e c o n t r a r y , i 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 a n y O b l i g a t i o n s s h a l l b e p a i d b y a C r e d i t P r o v i d e r , t h o s e O b l i g a t i o n s
s h a l l r e m a i n O u t s t a n d i n g f o r a l l p u r p o s e s , n o t b e d e f e a s e d o r o t h e r w i s e s a t i s f i e d a n d n o t b e
c o n s i d e r e d p a i d b y t h e C o m m i s s i o n w i t h i n t h e m e a n i n g o f t h i s S e c t i o n 1 0 . 0 1 , a n d t h e p l e d g e o f
t h e T r u s t E s t a t e a n d a l l c o v e n a n t s , a g r e e m e n t s a n d o t h e r o b l i g a t i o n s o f t h e C o m m i s s i o n a s h e r e i n
p r o v i d e d s h a l l c o n t i n u e t o e x i s t a n d s h a l l r u n t o t h e b e n e f i t o f s u c h C r e d i t P r o v i d e r , a n d s u c h
C r e d i t P r o v i d e r s h a l l b e s u b r o g a t e d t o t h e r i g h t s o f t h e H o l d e r s .
S e c t i o n 1 0 . 0 2 P r o v i s i o n f o r P a y m e n t o f O b l i g a t i o n s . O b l i g a t i o n s ( o r a n y
p o r t i o n o f t h e O b l i g a t i o n s ) s h a l l b e d e e m e d t o h a v e b e e n p a i d 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 0 . 0 1 i f :
( a ) t h e r e s h a l l h a v e b e e n i r r e v o c a b l y d e p o s i t e d w i t h t h e T r u s t e e o r o t h e r
f i d u c i a r y i n t r u s t e i t h e r ( i ) l a w f u l m o n e y o f t h e U n i t e d S t a t e s o f A m e r i c a i n a n a m o u n t t h a t s h a l l
b e s u f f i c i e n t , o r ( i i ) D e f e a s a n c e S e c u r i t i e s , t h e p r i n c i p a l a n d i n t e r e s t o n w h i c h w h e n d u e ,
t o g e t h e r w i t h t h e m o n e y s , i f a n y , d e p o s i t e d w i t h t h e T r u s t e e a t t h e s a m e t i m e , s h a l l b e s u f f i c i e n t
( a s c o n f i r m e d b y a r e p o r t o f a n I n d e p e n d e n t C e r t i f i e d P u b l i c A c c o u n t a n t ) , t o p a y w h e n d u e t h e
O H S U S A : 2 6 0 9 3 5 7 0 9 . 9 7 7
1 9 1
principal amount of, redemption premium (if any) and all unpaid interest on such Obligations (or
any portion thereof) to the maturity or the redemption date thereof, as the case may be; and •
(b) if any such Obligations are to be redeemed on any date prior to their
maturity, (i) the Trustee shall have received (not less than 25 days prior to the proposed
redemption date) in form satisfactory to it irrevocable written instructions from· an Authorized
Representative to redeem such Obligations on such date and (ii) notice of such redemption shall
have been given or provision satisfactory to the Trustee shall have been irrevocably made for the
giving of such notice.
Limitations elsewhere specified herein regarding the investment of money held by
the Trustee shall not be construed to prevent the depositing and holding of the Defeasance
Securities described in Section 10.02(a)(ii) for the purpose of defeasing the lien of this Indenture
as to Obligations that have not yet become due and payable. In addition, all money so deposited
with the Trustee as provided in Section 1 0.02(a)(i) may also be invested and reinvested, at the
written direction of an Authorized Representative, in Defeasance Securities, maturing in the
amounts and times as hereinbefore set forth, subject to the confirming report of an Independent
Certified Public Accountant as to the sufficiency thereof as provided in Section 10.02(a)(ii), and
all income from all Defeasance Securities in the hands of the Trustee pursuant to this Section
1 0.02, that is not required for the payment of the principal of the Obligations and interest and
redemption premium, if any, thereon with respect to which such money shall have been so
deposited, shall be deposited in the Toll Revenue Fund as and when realized and applied as is
other money deposited in the Toll Revenue Fund, or, in the event there are no longer any
Obligations Outstanding under this Indenture, such income shall be automatically paid over to
the Commission.
Notwithstanding any other provision of this Indenture, no Obligation that is
subject to optional or mandatory tender in accordance with the provisions of the Supplemental
Indenture pursuant to which such Obligation was issued, shall be deemed to be paid within the
meaning of this Indenture, unless arrangements shall have been made to assure that such
Obligation, if tendered for purchase prior to the date of its redemption or maturity in accordance
with the provisions of the applicable Supplemental Indenture, could be paid and redeemed from
such moneys or Defeasance Securities as are provided pursuant to this Section 1 0.02.
Section 10.03 Unclaimed Moneys. Anything contained herein to the contrary
notwithstanding, any moneys held by the Trustee in trust for the payment and discharge of any of
the Obligations that remain unclaimed for two (2) years after the date when such Obligations
shall have become due and payable (during which period the Trustee shall hold such moneys
without liability for interest), either at their stated maturity dates, tender for purchase or by call
for redemption, if such moneys were held by the Trustee at such date, or for two (2) years after
the date of deposit of such moneys, if deposited with Trustee after the date when such
Obligations or the Purchase Price thereof became due and payable, shall automatically be repaid
by the Trustee to the Commission as its absolute property free from trust, and the Trustee shall
thereupon bereleased and discharged with respect thereto and the Holders shall look only to the
Commission for the payment of the principal or Purchase Price of, the redemption premiums, if
any, and interest on such Obligations.
OHSUSA:260935709.9 78
192
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A R T I C L E X I
M I S C E L L A N E O U S
S e c t i o n 1 1 . 0 1 L i a b i l i t y o f C o m m i s s i o n L i m i t e d t o T r u s t E s t a t e .
N o t w i t h s t a n d i n g a n y t h i n g c o n t a i n e d h e r e i n , t h e C o m m i s s i o n s h a l l n o t b e r e q u i r e d t o a d v a n c e
a n y m o n e y d e r i v e d f r o m a n y s o u r c e o f i n c o m e o t h e r t h a n f r o m t h e T r u s t E s t a t e a s p r o v i d e d
h e r e i n f o r t h e p a y m e n t o f t h e p r i n c i p a l o f o r r e d e m p t i o n p r e m i u m , i f a n y , o r i n t e r e s t o n t h e
O b l i g a t i o n s o r f o r t h e p e r f o r m a n c e o f a n y a g r e e m e n t s o r c o v e n a n t s c o n t a i n e d h e r e i n . T h e
C o m m i s s i o n m a y , h o w e v e r , a d v a n c e f u n d s f o r a n y s u c h p u r p o s e s o l o n g a s s u c h f u n d s a r e
d e r i v e d f r o m a s o u r c e l e g a l l y a v a i l a b l e f o r s u c h p u r p o s e a n d m a y b e u s e d b y t h e C o m m i s s i o n f o r
s u c h p u r p o s e w i t h o u t i n c u r r i n g a n i n d e b t e d n e s s p r o h i b i t e d h e r e b y .
T h e O b l i g a t i o n s a r e s p e c i a l o b l i g a t i o n s o f t h e C o m m i s s i o n p a y a b l e , a s t o
p r i n c i p a l t h e r e o f , a n d r e d e m p t i o n p r e m i u m , i f a n y , u p o n t h e r e d e m p t i o n o f a n y t h e r e o f , a n d
i n t e r e s t t h e r e o n , s o l e l y f r o m t h e T r u s t E s t a t e a s p r o v i d e d h e r e i n a n d t h e C o m m i s s i o n i s n o t
o b l i g a t e d t o p a y t h e m e x c e p t f r o m t h e T r u s t E s t a t e . T h e O b l i g a t i o n s d o n o t c o n s t i t u t e a d e b t o r
l i a b i l i t y o f t h e S t a t e o r o f a n y p o l i t i c a l s u b d i v i s i o n o f t h e S t a t e o t h e r t h a n t h e C o m m i s s i o n , o r a
p l e d g e o f t h e f u l l f a i t h a n d c r e d i t o f t h e S t a t e o r o f a n y p o l i t i c a l s u b d i v i s i o n o f t h e S t a t e .
S e c t i o n 1 1 . 0 2 L i m i t a t i o n o f R i g h t s ; T h i r d P a r t y B e n e f i c i a r y . W i t h t h e
e x c e p t i o n o f r i g h t s h e r e i n e x p r e s s l y c o n f e r r e d , n o t h i n g e x p r e s s e d o r m e n t i o n e d i n o r t o b e
i m p l i e d f r o m t h i s I n d e n t u r e o r t h e O b l i g a t i o n s i s i n t e n d e d o r s h a l l b e c o n s t r u e d t o g i v e t o a n y
P e r s o n o t h e r t h a n t h e B o n d h o l d e r s a n d e a c h S e c u r e d C r e d i t o r a n y l e g a l o r e q u i t a b l e r i g h t ,
r e m e d y o r c l a i m u n d e r o r i n r e s p e c t t o t h i s I n d e n t u r e o r a n y c o v e n a n t s , c o n d i t i o n s a n d p r o v i s i o n s
h e r e i n c o n t a i n e d ; t h i s I n d e n t u r e a n d a l l o f t h e c o v e n a n t s , c o n d i t i o n s a n d p r o v i s i o n s h e r e i n b e i n g
i n t e n d e d t o b e a n d b e i n g f o r t h e s o l e a n d e x c l u s i v e b e n e f i t o f t h e B o n d h o l d e r s a n d e a c h S e c u r e d
C r e d i t o r .
S e c t i o n 1 1 . 0 3 R i g h t s o f C r e d i t P r o v i d e r s . ( a ) A S u p p l e m e n t a l I n d e n t u r e
a u t h o r i z i n g a S e r i e s o f O b l i g a t i o n s m a y p r o v i d e t h a t a n y C r e d i t P r o v i d e r p r o v i d i n g a C r e d i t
S u p p o r t I n s t r u m e n t w i t h r e s p e c t t o O b l i g a t i o n s o f s u c h S e r i e s m a y e x e r c i s e a n y r i g h t u n d e r t h i s
I n d e n t u r e g i v e n t o t h e O w n e r s o f t h e O b l i g a t i o n s t o w h i c h s u c h C r e d i t S u p p o r t I n s t r u m e n t
r e l a t e s .
( b ) A l l p r o v i s i o n s u n d e r t h i s I n d e n t u r e a u t h o r i z i n g t h e e x e r c i s e o f r i g h t s b y a
C r e d i t P r o v i d e r w i t h r e s p e c t t o c o n s e n t s , a p p r o v a l s , d i r e c t i o n s , w a i v e r s , a p p o i n t m e n t s , r e q u e s t s
o r o t h e r a c t i o n s , s h a l l b e d e e m e d n o t t o r e q u i r e o r p e r m i t s u c h c o n s e n t s , a p p r o v a l s , d i r e c t i o n s ,
w a i v e r s , a p p o i n t m e n t s , r e q u e s t s o r o t h e r a c t i o n s a n d s h a l l b e r e a d a s i f t h e C r e d i t P r o v i d e r w e r e
n o t m e n t i o n e d t h e r e i n d u r i n g a n y p e r i o d d u r i n g w h i c h t h e r e . i s a d e f a u l t b y s u c h C r e d i t P r o v i d e r
u n d e r t h e a p p l i c a b l e C r e d i t S u p p o r t I n s t r u m e n t o r a f t e r t h e a p p l i c a b l e C r e d i t S u p p o r t I n s t r u m e n t
s h a l l a t a n y t i m e f o r a n y r e a s o n c e a s e t o b e v a l i d a n d b i n d i n g o n t h e C r e d i t P r o v i d e r , o r s h a l l b e
d e c l a r e d t o b e n u l l a n d v o i d b y f i n a l j u d g m e n t o f a c o u r t o f c o m p e t e n t j u r i s d i c t i o n , o r a f t e r t h e
C r e d i t S u p p o r t I n s t r u m e n t h a s b e e n r e s c i n d e d , r e p u d i a t e d b y t h e C r e d i t P r o v i d e r o r t e r m i n a t e d ,
o r a f t e r a r e c e i v e r , c o n s e r v a t o r o r l i q u i d a t o r h a s b e e n a p p o i n t e d f o r t h e C r e d i t P r o v i d e r o r i f t h e
C r e d i t P r o v i d e r i s r a t e d b e l o w B a a 3 b y M o o d y ' s o r B B B - b y S & P . A l l p r o v i s i o n s r e l a t i n g t o t h e
r i g h t s o f a C r e d i t P r o v i d e r s h a l l b e o f n o f u r t h e r f o r c e a n d e f f e c t i f a l l a m o u n t s o w i n g t o t h e
O H S U S A : 2 6 0 9 3 5 7 0 9 . 9 7 9
1 9 3
Credit Provider under a Credit Support Instrument have been paid and the Credit Support •
Instrument provided by such Credit Provider is no longer in effect.
Section 11.04 Severability. If any provision of this Indenture is held to be in
conflict with any applicable statute or rule of law or is otherwise held to be unenforceable for
any reason whatsoever, such circumstances shall not have the effect of rendering the. other
provision or provisions herein contained invalid, inoperative, or unenforceable to any extent
whatsoever. If any one or more of the provisions contained in this Indenture or in the
Obligations shall for any reason be held to be invalid, illegal or unenforceable in any respect,
then such provision or provisions shall be deemed severable from the remaining provisions
contained in this Indenture and such invalidity, illegality or unenforceability shall not affect any
other provision of this Indenture, and this Indenture shall be construed as if such invalid or
illegal or unenforceable provision had never been contained herein. The Commission hereby
declares that it would have executed this Indenture and each and every other section, paragraph,
sentence, clause or phrase hereof, and authorized the issuance of the Obligations pursuant to this
Indenture, irrespective of the fact that any one or more sections, paragraphs, sentences, clauses or
phrases of this Indenture may be held illegal, invalid or unenforceable.
Section 11.05 Notices. Except as otherwise ptovided 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 as follows:
If to the Commission:
Riverside County Transportation Commission
P.O. Box 12008
Riverside, California 92502
or
4080 Lemon Street, 3rd Floor
Riverside, CA 92501
Attention: Chief Financial Officer
Telephone: (951) 787-7141
Fax: (951) 787-7920
If to the Trustee:
[to come]
The Commission and the Trustee by notice given hereunder may designate any different
addresses to which subsequent notices, certificates or other communications shall be sent, or
addresses or other instructions for the giving of Electronic notice, but no notice directed to any
one such entity shall be thereby required to be sent to more than two addresses.
OHSUSA:260935709.9 80
194
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S e c t i o n 1 1 . 0 6 P a y m e n t s D u e o n N o n - B u s i n e s s D a y s . E x c e p t a s s p e c i f i c a l l y
p r o v i d e d o t h e r w i s e i n a S u p p l e m e n t a l I n d e n t u r e , a n y p a y m e n t o r t r a n s f e r t h a t w o u l d o t h e r w i s e
b e c o m e d u e o n a d a y t h a t i s n o t a B u s i n e s s D a y n e e d n o t b e m a d e o n s u c h d a y b u t s h a l l b e m a d e
o n t h e n e x t s u c c e e d i n g B u s i n e s s D a y , w i t h t h e s a m e f o r c e a n d e f f e c t a s i f m a d e o n t h e d a t e d u e ,
a n d n o i n t e r e s t s h a l l a c c r u e f o r t h e p e r i o d f r o m a n d a f t e r t h e d a t e d u e .
S e c t i o n 1 1 . 0 7 C a p t i o n s . T h e c a p t i o n s o r h e a d i n g s i n t h i s I n d e n t u r e a r e f o r
c o n v e n i e n c e o n l y a n d i n n o w a y d e f i n e , l i m i t o r d e s c r i b e t h e s c o p e o r i n t e n t o f a n y p r o v i s i o n s o r
s e c t i o n s o f t h i s I n d e n t u r e .
S e c t i o n 1 1 . 0 8 C a l i f o r n i a L a w . T h i s I n d e n t u r e s h a l l b e c o n s t r u e d a n d g o v e r n e d
i n a c c o r d a n c e w i t h t h e l a w s o f t h e S t a t e o f C a l i f o r n i a .
S e c t i o n 1 1 . 0 9 E f f e c t i v e D a t e . T h i s I n d e n t u r e s h a l l b e c o m e e f f e c t i v e u p o n i t s
e x e c u t i o n a n d d e l i v e r y .
S e c t i o n 1 1 . 1 0 E x e c u t i o n i n S e v e r a l C o u n t e r p a r t s . T h i s I n d e n t u r e m a y b e
e x e c u t e d i n a n y n u m b e r o f c o u n t e r p a r t s a n d e a c h o f s u c h c o u n t e r p a r t s s h a l l f o r a l l p u r p o s e s b e
d e e m e d t o b e a n o r i g i n a l ; a n d a l l s u c h c o u n t e r p a r t s , o r a s m a n y o f t h e m a s t h e C o m m i s s i o n a n d
T r u s t e e s h a l l p r e s e r v e u n d e s t r o y e d , s h a l l t o g e t h e r c o n s t i t u t e b u t o n e a n d t h e s a m e i n s t r u m e n t .
O H S U S A : 2 6 0 9 3 5 7 0 9 . 9 8 1
1 9 5
IN WITNESS WHEREOF, the parties hereto have caused this Subordinate
Indenture to be executed by their officers thereunto duly authorized as of the day and year first •
written above.
Countersigned:
Clerk of the Board
OHSUSA:260935709.9
RIVERSIDE COUNTY
TRANSPORTATION COMMISSION
By ------------------------------
Executive Director
THE BANK OF NEW YORK MELLON
TRUST COMPANY, N.A., as Trustee
By ------------------------------
82
196
Authorized Officer
•
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" S C H E D U L E I
C A P I T A L E X P E N D I T U R E S F U N D
[ T O C O M E ]
"
"
O H S U S A : 2 6 0 9 3 5 7 0 9 . 9
1 9 7
"
"
"
F I R S T S U P P L E M E N T A L I N D E N T U R E
b e t w e e n
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
A T I A C H M E N T 4
O H & S D r a f t
3 / 2 6 / 2 0 1 3
T H E B A N K O F N E W Y O R K M E L L O N T R U S T C O M P A N Y , N . A . ,
a s T r u s t e e
O H S U S A : 2 6 0 9 4 1 3 3 5 . 5
D a t e d a s o f J u n e 1 , 2 0 1 3
R e l a t i n g 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 C o m m i s s i o n
T o l l R e v e n u e B o n d s ,
2 0 1 3 S e r i e s A a n d 2 0 1 3 S e r i e s B
( S u p p l e m e n t i n g t h e M a s t e r 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 1 3 )
B
1 9 8
"
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"
S e c t i o n 1 2 . 0 1 .
S e c t i o n 1 2 . 0 2 .
S e c t i o n 1 3 . 0 1 .
S e c t i o n 1 3 . 0 2 .
S e c t i o n 1 3 . 0 3 .
S e c t i o n 1 4 . 0 1 .
S e c t i o n 1 4 . 0 2 .
S e c t i o n 1 4 . 0 3 .
S e c t i o n 1 4 . 0 4 .
S e c t i o n 1 4 . 0 5 .
S e c t i o n 1 4 . 0 6 .
S e c t i o n 1 5 . 0 1 .
S e c t i o n 1 5 . 0 2 .
S e c t i o n 1 5 . 0 3 .
S e c t i o n 1 5 . 0 4 .
S e c t i o n 1 5 . 0 5 .
T A B L E O F C O N T E N T S
A R T I C L E X I I
D E F I N I T I O N S
P a g e
D e f i n i t i o n s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
R u l e s o f C o n s t r u c t i o n . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
A R T I C L E X I I I
F I N D I N G S , D E T E R M I N A T I O N S A N D D I R E C T I O N S
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
R e c i t a l i n B o n d s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
A R T I C L E X I V
A U T H O R I Z A T I O N O F 2 0 1 3 B O N D S
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
P u r p o s e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
C o n d i t i o n s T o D e l i v e r y o f 2 0 1 3 B o n d s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
D i s p o s i t i o n o f P r o c e e d s o f 2 0 1 3 B o n d s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
A R T I C L E X V
R E D E M P T I O N O F 2 0 1 3 B O N D S
O p t i o n a l R e d e m p t i o n o f 2 0 1 3 S e r i e s A B o n d s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
M a n d a t o r y R e d e m p t i o n o f 2 0 1 3 S e r i e s A B o n d s F r o m S i n k i n g F u n d
I n s t a l l m e n t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
S e l e c t i o n o f 2 0 1 3 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
N o R e d e m p t i o n o f 2 0 1 3 S e r i e s B B o n d s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
A R T I C L E X V I
E S T A B L I S H M E N T O F F U N D S A N D A C C O U N T S A N D A P P L I C A T I O N T H E R E O F
S e c t i o n 1 6 . 0 1 .
S e c t i o n 1 6 . 0 2 .
S e c t i o n 1 6 . 0 3 .
S e c t i o n 1 6 . 0 4 .
O H S U S A : 2 6 0 9 4 1 3 3 5 . 5
F u n d s � a n d A c c o u n t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
2 0 1 3 B o n d s P r o j e c t F u n d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
2 0 1 3 B o n d s C o s t s o f l s s u a n c e A c c o u n t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
2 0 1 3 B o n d s R e s e r v e A c c o u n t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 0
- 1 -
1 9 9
TABLE OF CONTENTS
(continued)
ARTICLE XVII
MISCELLANEOUS
Page
Section 17.0 1. Severability .................................................................................................... 10
Section 17 .02. Parties Interested Herein ................................................................................ 11
Section 17.03. Headings Not Binding .................................................................................... 11
Section 17.04. Notice Addresses ...................................................•....................................... 11
Section 17.05. Notices to Rating Agencies ............................................................................ 11
Section 17.06. Indenture to Remain in Effect.. ...................................................................... 11
Section 17.07. Effective Date ofFirst Supplemental Indenture ............................................ 11
Section 17.08. Execution in Counterparts .............................................................................. 11
Exhibit A Form of2013 Series A Bond A-1
Exhibit B Notice Addresses ......................................................................................... B-1
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T H I S F I R S T S U P P L E M E N T A L I N D E N T U R E , d a t e d a s o f J u n e 1 , 2 0 1 3 ( t h i s
" F i r s t S u p p l e m e n t a l I n d e n t u r e " ) , b e t w e e n t h e R I V E R S I D E C O U N T Y T R A N S P O R T A T I O N
C O M M I S S I O N , a p u b l i c e n t i t y d u l y e 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 T H E B A N K O F N E W Y O R K M E L L O N T R U S T C O M P A N Y , N . A . , 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 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 o g e t h e r w i t h a n y s u c c e s s o r t h e r e t o , 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 F i r s t S u p p l e m e n t a l I n d e n t u r e i s s u p p l e m e n t a l t o t h e M a s t e r 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 1 3 ( 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 S e n i o r L i e n 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 S e n i o r L i e n B o n d s a r e t o b e
s e c u r e d b y t h e T r u s t E s t a t e i n a c c o r d a n c e w i t h t h e I n d e n t u r e ; 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 S e n i o r
L i e n B o n d s s e c u r e d b y t h e T r u s t E s t a t e , s u c h 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 T o l l R e v e n u e S e n i o r L i e n B o n d s , 2 0 1 3 S e r i e s A , " 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 T o l l R e v e n u e S e n i o r L i e n B o n d s , 2 0 1 3 S e r i e s B , " 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 t h e c o s t s o f t h e i n i t i a l p h a s e o f t h e R i v e r s i d 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 , a l l a s p r o v i d e d i n t h i s F i r s t S u p p l e m e n t a l I n d e n t u r e ;
N O W , T H E R E F O R E , t h e p a r t i e s h e r e t o h e r e b y a g r e e a s f o l l o w s :
A R T I C L E X I I
D E F I N I T I O N S
S e c t i o n 1 2 . 0 1 . D e f i n i t i o n s .
( a ) D e f i n i t i o n s . U n l e s s t h e c o n t e x t o t h e r w i s e r e q u i r e s , o r a s o t h e r w i s e p r o v i d e d
i n s u b s e c t i o n ( b ) o f t h i s S e c t i o n , a l l t e r m s d e f i n e d i n 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 ,
r e s p e c t i v e l y , i n t h i s F i r s t S u p p l e m e n t a l I n d e n t u r e .
( b ) A d d i t i o n a l D e f i n i t i o n s . U n l e s s t h e c o n t e x t o t h e r w i s e r e q u i r e s , t h e f o l l o w i n g
t e r m s s h a l l , f o r a l l p u r p o s e s o f t h i s F i r s t S u p p l e m e n t a l I n d e n t u r e , h a v e t h e f o l l o w i n g m e a n i n g s :
" A u t h o r i z e d D e n o m i n a t i o n s " m e a n s , w i t h r e s p e c t t o 2 0 1 3 S e r i e s A B o n d s ,
$ 5 , 0 0 0 p r i n c i p a l a m o u n t 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 a n d , w i t h r e s p e c t t o 2 0 1 3 S e r i e s B
B o n d s , $ 5 , 0 0 0 M a t u r i t y V a l u e 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 .
" F i r s t S u p p l e m e n t a l I n d e n t u r e " m e a n s t h i s F i r s t S u p p l e m e n t a l I n d e n t u r e , d a t e d
a s o f J u n e 1 , 2 0 1 3 .
O H S U S A : 2 6 0 9 4 1 3 3 5 . 5
2 0 1
"Interest Payment Date" means, with respect to the 2013 Series A Bonds, June 1
and December 1 of each year until the redemption or maturity of such 2013 Series A Bonds,
commencing with December 1, 2013, and, for purposes of compounding interest on the 2013
Series B Bonds, June 1 and December 1 of each year until the maturity of such 2013 Series B
Bonds, commencing with December 1, 2013.
"Issue Date" means, with respect to the 2013 Bonds, the date on which the 2013
Bonds are first delivered to the purchasers thereof.
"Record Date" means, with respect to the 2013 Bonds, the fifteenth (15th) day
(whether or not a Business Day) of the month preceding the month in which such Interest
Payment Date occurs.
"2013 Bonds" means, collectively, the 2013 Series A Bonds and the 2013 Series
B Bonds.
["2Q13 Bonds Tax Certificate" shall mean that certain Tax Certificate executed
on behalf of the Commission in connection with the issuance of the 2013 Bonds and relating to
the requirements ofthe Code.]
"2013 Bonds Costs of Issuance Account" means the 2013 Bonds Costs of
Issuance Account established within the Senior Lien Obligations Account within the Project
Fund pursuant to Section 16.01.
"2013 Bonds Reserve Account" means the 2013 Bonds Reserve Account
established within the Senior Lien Bond Reserve Fund pursuant to Section 16.0 1.
"2013 Bonds Reserve Requirement" means, as of any particular date of
calculation, with respect to the 2013 Bonds, an amount equal to the least of (i) Maximum Annual
Debt Service on the 2013 Bonds, (ii) one hundred twenty-five percent (125%) of average annual
Debt Service on the 2013 Bonds, or (iii) ten percent ( 1 0%) of the original principal amount of the
2013 Bonds.
"2013 Series A Capitalized Interest Account" means the 2013 Series A
Capitalized Interest Account established within the Senior Lien Obligations Account within the
Project Fund pursuant to Section 16.0 1.
"2013 Series A Bonds" means the Riverside County Transportation Commission
Toll Revenue Senior Lien Bonds, 2013 Series A, authorized by Article XIV ofthis Indenture.
"2013 Series B Bonds" means the Riverside County Transportation Commission
Toll Revenue Senior Lien Bonds, 2013 Series B, authorized by Article XIV of this Indenture .
OHSUSA:260941335.5 -2-
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S e c t i o n 1 2 . 0 2 . R u l e s o f C o n s t r u c t i o n . W o r d s o f t h e m a s c u l i n e g e n d e r s h a l l
b e d e e m e d a n d c o n s t r u e d t o i n c l u d e c o r r e l a t i v e w o r d s o f t h e f e m i n i n e a n d n e u t e r g e n d e r s .
U n l e s s t h e c o n t e x t s h a l l o t h e r w i s e i n d i c a t e , w o r d s i m p o r t i n g t h e s i n g u l a r n u m b e r s h a l l i n c l u d e
t h e p l u r a l n u m b e r a n d v i c e v e r s a , a n d w o r d s i m p o r t i n g p e r s o n s s h a l l i n c l u d e c o r p o r a t i o n s a n d
a s s o c i a t i o n s , i n c l u d i n g p u b l i c b o d i e s , a s w e l l a s n a t u r a l p e r s o n s . D e f i n e d t e r m s s h a l l i n c l u d e a n y
v a r i a n t o f t h e t e r m s s e t f o r t h i n t h i s A r t i c l e X I I .
T h e t e r m s " h e r e b y , " " h e r e o f , " " h e r e t o , " " h e r e i n , " " h e r e u n d e r , " a n d a n y s i m i l a r
t e r m s , a s u s e d i n t h i s F i r s t S u p p l e m e n t a l I n d e n t u r e , r e f e r t o t h e I n d e n t u r e .
A R T I C L E X I I I
F I N D I N G S , D E T E R M I N A T I O N S A N D D I R E C T I O N S
S e c t i o n 1 3 . 0 1 . F i n d i n g s a n d D e t e r m i n a t i o n s . T h e C o m m i s s i o n h e r e b y f i n d s
a n d d e t e r m i n e s t h a t t h e 2 0 1 3 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 I V h e r e o f 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 3 B o n d s , a n y a n d a l l a c t s , c o n d i t i o n s a n d t h i n g s r e q u i r e d t o e x i s t , t o h a p p e n
a n d t o b e p e r f o r m e d , p r e c e d e n t t o a n d i n t h e i s s u a n c e t h e r e o f , w i l l e x i s t , w i l l h a v e h a p p e n e d a n d
w i l l h a v e b e e n p e r f o r m e d , i n d u e t i m e , f o r m a n d m a n n e r , a s r e q u i r e d b y t h e C o n s t i t u t i o n a n d
s t a t u t e s o f t h e S t a t e .
S e c t i o n 1 3 . 0 2 . R e c i t a l i n B o n d s . T h e r e s h a l l b e i n c l u d e d i n e a c h o f t h e
d e f i n i t i v e 2 0 1 3 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 3 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 3 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 3 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 3 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 s e c u r e d b y
t h e T r u s t E s t a t e , 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 s o f t h e 2 0 1 3 B o n d s 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 1 3 . 0 3 . E f f e c t o f F i n d i n g s a n d R e c i t a l . 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 3 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 3 B o n d s i s a t i s s u e , a n d n o b o n a f i d e p u r c h a s e r o f a n y s u c h 2 0 1 3 B o n d
c o n t a i n i n g t h e 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 r e q u i r e d t o s e e t o t h e e x i s t e n c e o f a n y f a c t , o r t o
t h e p e r f o r m a n c e o f a n y c o n d i t i o n , o r t o t h e t a k i n g o f a n y p r o c e e d i n g , r e q u i r e d p r i o r t o s u c h
i s s u a n c e , o r t o t h e a p p l i c a t i o n o f t h e p u r c h a s e p r i c e f o r s u c h 2 0 1 3 B o n d s .
A R T I C L E X I V
A U T H O R I Z A T I O N O F 2 0 1 3 B O N D S
S e c t i o n 1 4 . 0 1 . P r i n c i p a l A m o u n t , D e s i g n a t i o n a n d S e r i e s . P u r s u a n t t o t h e
p r o v i s i o n s o f t h i s I n d e n t u r e a n d t h e p r o v i s i o n s o f t h e � A c t , a S e r i e s o f S e n i o r L i e n B o n d s e n t i t l e d
t o t h e b e n e f i t , p r o t e c t i o n a n d s e c u r i t y o f s u c h p r o v i s i o n 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 t h e g r a n t
O H S U S A : 2 6 0 9 4 1 3 3 5 . 5 - 3 -
2 0 3
of the Trust Estate in the Indenture, is hereby authorized in the aggregate principal amount of
$ . Such Senior Lien Bonds shall be issued as Current Interest Obligations and shall •
be designated as, and shall be distinguished from the Senior Lien Bonds of all other Series by the
title, "Riverside County Transportation Commission Toll Revenue Senior Lien Bonds, 2013
Series A." Pursuant to the provisions of this Indenture and the provisions of the Act, a Series of
Senior Lien Bonds entitled to the benefit, protection and security of such provisions, including
without limitation the grant of the Trust Estate in the Indenture, is hereby authorized in the initial
Accreted Value of$ . Such Bonds shall be issued as Capital Appreciation Obligations
and shall be designated as, and shall be distinguished from the Bonds of all other Series by the
title, "Riverside County Transportation Commission Toll Revenue Senior Lien Bonds, 2013
Series B."
Section 14.02. Purpose. The 2013 Bonds are issued for the purpose of
financing the Riverside SR-91 Corridor Improvement Project, funding the required deposit to the
2013 Reserve Account, funding capitalized interest on the 2013 Series A Bonds and paying costs
of issuance.
Section 14.03. Form, Denomination, Numbers and Letters. The 2013
Bonds shall be issued as Book-Entry Bonds in fully registered form in Authorized
Denominations and shall be numbered from one. upward in consecutive numerical order preceded
by the letter "R" prefixed to the number. The 2013 Series A Bonds and the certificate of
authentication shall be substantially in the form attached hereto as Exhibit A-1, which form is
hereby approved and adopted as the form of the 2013 Series A Bonds and as the form of the
certificate of authentication. The 2013 Series B Bonds and the certificate of authentication shall
be substantially in the form attached hereto as Exhibit A-2, which form is hereby approved and
adopted as the form of the 2013 Series B Bonds and as the form of the certificate of
authentication.
Section 14.04. Date, Maturities and Interest Rates.
(a) The 2013 Series A Bonds shall be issued as Current Interest Obligations in
the aggregate principal amount of $ . The 2013 Series A Bonds shall be dated their
Issue Date, shall bear interest from that date at the following rates per annum, computed on the
basis of a 360-day year comprised of twelve 30-day months, and shall mature on June 1 in the
following years and in the following amounts:
Maturity Date
(June 1)
* Term Bond Final Maturity
Principal Amount
t Priced to first call date of June 1, 20_ at par.
OHSUSA:26094 I 335.5 -4-
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Interest Rate
•
•
" ( b ) E a c h 2 0 1 3 S e r i e s A B o n d s h a l l b e a r i n t e r e s t f r o m t h e l a t e s t o f : ( i ) i t s I s s u e
"
"
D a t e ; ( i i ) t h e m o s t r e c e n t I n t e r e s t P a y m e n t D a t e t o w h i c h i n t e r e s t h a s b e e n p a i d t h e r e o n o r d u l y
p r o v i d e d f o r , o r ( i i i ) i f t h e d a t e o f a u t h e n t i c a t i o n o f s u c h B o n d i s a f t e r a R e c o r d D a t e b u t p r i o r t o
t h e i m m e d i a t e l y s u c c e e d i n g I n t e r e s t P a y m e n t D a t e , t h e I n t e r e s t P a y m e n t D a t e i m m e d i a t e l y
s u c c e e d i n g s u c h d a t e o f a u t h e n t i c a t i o n
( c ) A s l o n g a s t h e 2 0 1 3 S e r i e s A B o n d s a r e B o o k - E n t r y B o n d s , p r i n c i p a l o f
a n d p r e m i u m , i f a n y , a n d i n t e r e s t o n t h e 2 0 1 3 S e r i e s A B o n d s s h a l l b e p a y a b l e b y w i r e t r a n s f e r t o
t h e S e c u r i t i e s D e p o s i t o r y i n l a w f u l m o n e y o f t h e U n i t e d S t a t e s o f A m e r i c a .
( d ) I f t h e 2 0 1 3 S e r i e s A B o n d s c e a s e t o b e B o o k - E n t r y B o n d s , p r i n c i p a l o f
a n d p r e m i u m , i f a n y , o n t h e 2 0 1 3 S e r i e s A B o n d s s h a l l b e p a y a b l e w h e n d u e u p o n p r e s e n t a t i o n
a n d s u r r e n d e r t h e r e o f a t t h e P r i n c i p a l O f f i c e o f t h e T r u s t e e a n d i n t e r e s t s h a l l b e p a y a b l e b y f i r s t
c l a s s m a i l 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 t o t h e O w n e r s t h e r e o f a s o f t h e c l o s e o f b u s i n e s s o n t h e
R e c o r d D a t e ; p r o v i d e d , h o w e v e r , t h a t O w n e r s o f $ 1 , 0 0 0 , 0 0 0 o r m o r e i n A c c r e t e d V a l u e o f 2 0 1 3
S e r i e s A B o n d s m a y , a t a n y t i m e p r i o r t o a R e c o r d D a t e , g i v e t h e T r u s t e e w r i t t e n i n s t r u c t i o n s f o r
p a y m e n t o f s u c h i n t e r e s t o n e a c h s u c c e e d i n g i n t e r e s t p a y m e n t d a t e b y w i r e t r a n s f e r .
( e ) T h e 2 0 1 3 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 a p i t a l A p p r e c i a t i o n
O b l i g a t i o n s i n t h e i n i t i a l p r i n c i p a l a m o u n t s a n d m a t u r e o n J u n e 1 i n e a c h o f t h e y e a r s a n d
M a t u r i t y V a l u e s s h o w n b e l o w :
[ T O C O M E ]
T h e 2 0 1 3 S e r i e s B B o n d s s h a l l n o t b e a r c u r r e n t i n t e r e s t ; e a c h 2 0 1 3 S e r i e s B B o n d
s h a l l i n c r e a s e i n v a l u e b y t h e a c c u m u l a t i o n o f e a r n e d i n t e r e s t f r o m i t s i n i t i a l p r i n c i p a l a m o u n t
s h o w n i n t h e t a b l e a b o v e o n t h e d a t e o f i s s u a n c e t h e r e o f t o t h e M a t u r i t y V a l u e t h e r e o f a t
m a t u r i t y , a s s u m i n g i n a n y p e r i o d t h a t t h e v a l u e i n c r e a s e s i n e q u a l d a i l y a m o u n t s o n t h e b a s i s o f a
3 6 0 - d a y y e a r o f t w e l v e 3 0 - d a y m o n t h s . T h e i n t e r e s t o n t h e 2 0 1 3 S e r i e s B B o n d s s h a l l b e
c o m p o u n d e d c o m m e n c i n g o n D e c e m b e r 1 , 2 0 1 3 , a n d t h e r e a f t e r o n J u n e 1 a n d D e c e m b e r 1 i n
e a c h y e a r t o m a t u r i t y o r t h e d a t e o f r e d e m p t i o n p r i o r t h e r e t o .
S e c t i o n 1 4 . 0 5 . C o n d i t i o n s T o D e l i v e r y o f 2 0 1 3 B o n d s . E a c h o f t h e 2 0 1 3
B o n d s s h a l l b e e x e c u t e d a n d d e l i v e r e d a s a u t h o r i z e d b y t h i s F i r s t S u p p l e m e n t a l I n d e n t u r e a n d t h e
I n d e n t u r e , i n c l u d i n g A r t i c l e s I I a n d I I I t h e r e o f , u p o n t h e r e c e i p t o f p a y m e n t t h e r e f o r f r o m t h e
p u r c h a s e r t h e r e o f .
S e c t i o n 1 4 . 0 6 . D i s p o s i t i o n o f P r o c e e d s o f 2 0 1 3 B o n d s . T h e n e t 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 3 B o n d s s h a l l b e r e c e i v e d b y t h e T r u s t e e a n d t r a n s f e r r e d a n d d e p o s i t e d
b y t h e T r u s t e e a s f o l l o w s :
( i ) D e p o s i t $ i n t o t h e 2 0 1 3 B o n d s C o s t s o f I s s u a n c e A c c o u n t ; - - - - -
( i i ) D e p o s i t $ , r e p r e s e n t i n g t h e 2 0 1 3 B o n d s R e s e r v e R e q u i r e m e n t a t t h e
t i m e o f i s s u a n c e o f t h e 2 0 1 3 B o n d s , i n t o t h e 2 0 1 3 B o n d s R e s e r v e A c c o u n t ;
( i i i ) D e p o s i t $ _ _ _ _ _ i n t o t h e 2 0 1 3 S e r i e s A C a p i t a l i z e d I n t e r e s t A c c o u n t ; a n d
O H S U S A : 2 6 0 9 4 1 3 3 5 . 5 - 5 -
2 0 5
(iv) Deposit the remaining amount of$ into the Senior Lien Obligations -----
Account of the Project Fund.
ARTICLE XV
REDEMPTION OF 2013 BONDS
Section 15.01. Optional Redemption of 2013 Series A Bonds.
(a) The 2013 Series A Bonds maturing on or before June 1, 20_ shall not be
subject to redemption prior to their respective stated maturities. The 2013 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 2013 Series A Bonds called
for redemption plus accrued interest to the date fixed for redemption, without premium.
The Commission shall give the Trustee written notice at least thirty (30) days (or
such lesser time period acceptable to the Trustee) before any date fixed for the redemption of the
2013 Series A Bonds to be redeemed pursuant to this subsection (a), designating the maturity or
maturities of the 2013 Series A Bonds to be redeemed, the portions thereof to be redeemed and
the fact and date of such redemption.
(b) Any optional redemption of 2013 Series A Bonds and notice thereof shall be
•
rescinded and cancelled pursuant to the provisions of Section 4.03 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 2013 Series A Bonds called for redemption.
Section 15.02. Mandatory Redemption of 2013 Series A Bonds From
Sinking Fund Installments.
(a) The 2013 Series A Bonds maturing on June 1, 20_, 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 Sinking Fund Installments on each June 1 a
Sinking Fund Installment is due as specified in Section 15.02(b), in the principal amount equal to
the Sinking Fund Installment due on such date and at a redemption price equal to 1 00% of the
principal amount thereof, plus accrued but unpaid interest to the redemption date, without
premmm.
(b) The Sinking Fund Installments for the 2013 Series A Term Bond maturing on
June 1, 20_ shall be due in the amounts and on the dates as follows:
OHSUSA:260941335.5 -6-
206
•
"
"
"
* F i n a l M a t u r i t y
S i n k i n g F u n d
I n s t a l l m e n t D a t e s
( J u n e 1 )
S i n k i n g F u n d
I n s t a l l m e n t s
( c ) T h e S i n k i n g F u n d I n s t a l l m e n t s f o r t h e 2 0 1 3 S e r i e s A T e r m B o n d 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 :
* F i n a l M a t u r i t y
S i n k i n g F u n d
I n s t a l l m e n t D a t e s
( J u n e 1 )
S i n k i n g F u n d
I n s t a l l m e n t s
( d ) T h e S i n k i n g F u n d I n s t a l l m e n t s f o r t h e 2 0 1 3 S e r i e s A T e r m B o n d 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 :
* F i n a l M a t u r i t y
S i n k i n g F u n d
I n s t a l l m e n t D a t e s
( J u n e 1 )
S i n k i n g F u n d
I n s t a l l m e n t s
( e ) T h e S i n k i n g F u n d I n s t a l l m e n t s f o r t h e 2 0 1 3 S e r i e s A T e r m B o n d 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 :
O H S U S A : 2 6 0 9 4 1 3 3 5 . 5 - 7 -
2 0 7
*Final Maturity
Sinking Fund
Installment Dates
(June I)
Sinking Fund
Installments
On or before the date such Sinking Fund Installments are due, the Trustee shall deposit such
amounts to the Principal Account and amounts so transferred shall be applied as provided in
Section 5.02 and this Section 15.02.
Section 15.03. Selection of 2013 Series A Bonds for Redemption. The
•
Commission shall designate which maturities of 2013 Series A Bonds are to be called for
redemption pursuant to Section 15.01 and what Sinking Fund Installments are to be reduced as
allocated to such redemptions. Whenever provision is made in this Indenture for the redemption
ofless than all of the 2013 Series A Bonds maturing on a specific maturity date, the Trustee shall
select the Bonds of such maturity to be redeemed, from the Outstanding Bonds of such maturity
and Series not previously called for redemption, in minimum denominations of $5,000 (of
principal), by lot in any manner which the Trustee in its sole discretion shall deem appropriate.
In the event Term Bonds are designated for redemption, the Commission may designate the •
Sinking Fund Installments under Section 15.02, or portions thereof, that are to be reduced as
allocated to suchredemption. The Trustee shall promptly notify the Commission in writing of
the Bonds of such Series so selected for redemption.
Section 15.04. Purchase In Lieu of Redemption. In lieu of mandatory
redemption from Sinking Fund Installments, the Commission may surrender to the Trustee for
cancellation 2013 Series A Term Bonds purchased on the open market and such 2013 Series A
Term Bonds shall be cancelled by the Trustee. If any 2013 Series A Term Bonds are so
cancelled, the Commission may designate the Sinking Fund Installments or portions thereof that
are to be reduced as allocated to such cancellation.
Section 15.05. No Redemption of 2013 Series B Bonds. The 2013 Series B
Bonds are not subject to redemption prior to maturity.
ARTICLE XVI
ESTABLISHMENT OF FUNDS AND ACCOUNTS
AND APPLICATION THEREOF
Section 16.01. Funds and Accounts. To ensure the proper application of
such portion of proceeds from the sale of the 2013 Bonds to be applied to pay Costs of the
Riverside SR-91 Corridor Improvement Project, Costs of Issuance of the 2013 Bonds and
capitalized interest on the 2013 Series A Bonds, there is hereby established the 2013 Bonds •
OHSUSA:260941335.5 -8-
208
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"
C o s t s o f I s s u a n c e A c c o u n t a n d 2 0 I 3 S e r i e s A C a p i t a l i z e d I n t e r e s t A c c o u n t i n t h e S e n i o r L i e n
O b l i g a t i o n s A c c o u n t o f t h e P r o j e c t F u n d , w h i c h s h a l l b e h e l d b y t h e T r u s t e e . T o e n s u r e t h e
p r o p e r a p p l i c a t i o n o f s u c h p 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 I 3 B o n d s t o b e a p p l i e d t o s a t i s f y t h e
2 0 1 3 B o n d s R e s e r v e R e q u i r e m e n t , t h e r e i s h e r e b y e s t a b l i s h e d t h e 2 0 1 3 B o n d s R e s e r v e A c c o u n t
w i t h i n t h e S e n i o r L i e n B o n d R e s e r v e F u n d , s u c h a c c o u n t t o b e h e l d b y t h e T r u s t e e .
S e c t i o n 1 6 . 0 2 . 2 0 1 3 B o n d s P r o j e c t 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 3 B o n d s P r o j e c t 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 t h e
R i v e r s i d 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 a n d s h a l l n o t b e u s e d f o r a n y o t h e r p u r p o s e
w h a t s o e v e r . P u r s u a n t t o S e c t i o n 5 . 0 7 , a l l i n t e r e s t , p r o f i t s a n d o t h e r i n c o m e r e c e i v e d f r o m t h e
i n v e s t m e n t o f m o n e y s i n t h e 2 0 1 3 B o n d s P r o j e c t F u n d s h a l l b e d e p o s i t e d i n t h e 2 0 1 3 B o n d s
P r o j e c t F u n d .
( 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 3 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 ; 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 3 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 .
[ P r o v i s i o n s f o r P a r i t y D r a w s o n T I F I A P r o j e c t A c c o u n t t o c o m e . ]
( 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 R i v e r s i d 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 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 2 0 1 3 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 2 0 1 3 B o n d s P r o j e c t F u n d , 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 2 0 I 3 B o n d s R e s e r v e A c c o u n t , t o t h e e x t e n t o f a n y
d e f i c i e n c y t h e r e i n , a n d t h e n t o t h e B o n d F u n d .
S e c t i o n 1 6 . 0 3 . 2 0 1 3 B o n d s C o s t s o f I s s u a n c e A c c o u n t . 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 3 B o n d s C o s t s o f I s s u a n c e A c c o u n t s h a l l r e m a i n t h e r e i n u n t i l . _ [ _ _ _
2 0 _ ] a n d 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 3 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 3 B o n d s C o s t s o f l s s u a n c e A c c o u n t 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
O H S U S A : 2 6 0 9 4 1 3 3 5 . 5 - 9 -
2 0 9
in the stated amounts have been incurred by the Commission and are presently due and payable •
and that each item thereof is a proper charge against the 2013 Bonds Costs of Issuance Account
and has not been previously paid from said fund. On [ , 20 _], any amounts remaining in
the 2013 Bonds Costs oflssuance Account shall be transferred to the [Bond Fund] and the 2013
Bonds Costs of Issuance Account shall be closed.
Section 16.04. 2013 Bonds Reserve Account. The monies set aside and
placed in the 2013 Bonds Reserve Account on account of the 2013 Bonds Reserve Requirement
shall be held solely for the benefit of the 2013 Bonds and shall be used, withdrawn, and
replenished as provided herein and in Section 5.03. If, on any date of valuation of Permitted
Investments credited to the 2013 Bonds Reserve Account pursuant to Section 5.07, the amount
on deposit in the 2013 Bonds Reserve Account exceeds the 2013 Bonds Reserve Requirement as
of such date, the Trustee shall transfer such excess amount to the Bond Fund or as otherwise
directed pursuant to a Written Request of the Commission, provided that such Written Request
of the Commission is accompanied by an Opinion of Bond Counsel to the effect that such
transfer shall not cause the interest on any of the 2013 Bonds to be included in· gross income for
federal income tax purposes.
Section 16.05. 2013 Series A Capitalized Interest Account. Moneys in the
2013 Series A Capitalized Interest Account, including investment earnings thereon, shall be
transferred to the Interest Account in the following amounts and on or before the following
Interest Payment Dates, and shall be used solely for the purpose of paying interest on the 2013
Series A Bonds Outstanding as the same shall become due and payable (including accrued
interest on any 2013 Series A Bonds purchased or redeemed prior to maturity): •
Amount
Any balance remammg on deposit in the 2013 Series A Capitalized Interest Account on
L...-___ ., 20 _] shall be transferred, together with any interest earnings thereon, to the Interest
Fund and applied to the payment on , 20 _] of interest on the 2013 Series A Bonds.
ARTICLE XVII
MISCELLANEOUS
Section 17.01. Severability. If any covenant, agreement or provision, or any
portion thereof, contained in this First Supplemental Indenture, or the application thereof to any
person or circumstance, is held to be unconstitutional, invalid or unenforceable, the remainder of
this First Supplemental Indenture, and the application of any such covenant, agreement or
OHSUSA:260941335.5 -10-
210
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p r o v i s i o n , o r p o r t i o n t h e r e o f , t o o t h e r p e r s o n s o r c i r c u m s t a n c e s , s h a l l b e d e e m e d s e v e r a b l e a n d
s h a l l n o t b e a f f e c t e d t h e r e b y , a n d t h i s F i r s t S u p p l e m e n t a l I n d e n t u r e s h a l l r e m a i n v a l i d .
S e c t i o n 1 7 . 0 2 . P a r t i e s I n t e r e s t e d H e r e i n . N o t h i n g i n t h i s F i r s t S u p p l e m e n t a l
I n d e n t u r e e x p r e s s e d o r i m p l i e d i s i n t e n d e d o r s h a l l b e c o n s t r u e d t o c o n f e r u p o n , o r t o g i v e t o , a n y
p e r s o n o r e n t i t y , o t h e r t h a n t h e C o m m i s s i o n , t h e T r u s t e e , a n d t h e O w n e r s o f t h e 2 0 1 3 B o n d s , a n y
r i g h t , r e m e d y o r c l a i m u n d e r o r b y r e a s o n o f t h i s F i r s t S u p p l e m e n t a l I n d e n t u r e o r a n y c o v e n a n t ,
c o n d i t i o n o r s t i p u l a t i o n h e r e o f ; a n d a l l t h e c o v e n a n t s , s t i p u l a t i o n s , p r o m i s e s a n d a g r e e m e n t s i n
t h i s F i r s t S u p p l e m e n t a l I n d e n t u r e c o n t a i n e d b y a n d o n b e h a l f o f t h e C o m m i s s i o n s h a l l b e f o r t h e
s o l e a n d e x c l u s i v e b e n e f i t o f t h e C o m m i s s i o n , t h e T r u s t e e , a n d t h e O w n e r s .
S e c t i o n 1 7 . 0 3 . H e a d i n g s N o t B i n d i n g . T h e h e a d i n g s i n t h i s F i r s t
S u p p l e m e n t a l I n d e n t u r e a r e f o r c o n v e n i e n c e o n l y a n d i n n o w a y d e f i n e , l i m i t o r d e s c r i b e t h e
s c o p e o r i n t e n t o f a n y p r o v i s i o n s o r s e c t i o n s o f t h i s F i r s t S u p p l e m e n t a l I n d e n t u r e .
S e c t i o n 1 7 . 0 4 . N o t i c e A d d r e s s e s . E x c e p t a s o t h e r w i s e p r o v i d e d h e r e i n , i t
s h a l l b e s u f f i c i e n t s e r v i c e o r g i v i n g o f n o t i c e , r e q u e s t , c o m p l a i n t , d e m a n d o r o t h e r p a p e r i f t h e
s a m e s h a l l b e d u l y m a i l e d b y r e g i s t e r e d o r c e r t i f i e d m a i l , p o s t a g e p r e p a i d , a d d r e s s e d t o t h e
N o t i c e A d d r e s s f o r t h e a p p r o p r i a t e p a r t y o r p a r t i e s a s p r o v i d e d i n E x h i b i t B h e r e t o . A n y s u c h
e n t i t y b y n o t i c e g i v e n h e r e u n d e r m a y d e s i g n a t e a n y d i f f e r e n t a d d r e s s e s t o w h i c h s u b s e q u e n t
n o t i c e s , c e r t i f i c a t e s o r o t h e r c o m m u n i c a t i o n s s h a l l b e s e n t , b u t n o n o t i c e d i r e c t e d t o a n y o n e s u c h
e n t i t y s h a l l b e t h e r e b y r e q u i r e d t o b e s e n t t o m o r e t h a n t w o a d d r e s s e s .
S e c t i o n 1 7 . 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 . T h e T r u s t e e s h a l l p r o v i d e n o t i c e
t o t h e R a t i n g A g e n c i e s 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 3 B o n d s :
( 1 ) C h a n g e i n T r u s t e e ;
( 2 ) A m e n d m e n t s t o t h e I n d e n t u r e ; a n d
( 3 ) R e d e m p t i o n o r d e f e a s a n c e o f t h e 2 0 1 3 B o n d s .
S e c t i o n 1 7 . 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 F i r s t S u p p l e m e n t a l I n d e n t u r e , t h e M a s t e r 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 1 7 . 0 7 . E f f e c t i v e D a t e o f F i r s t S u p p l e m e n t a l I n d e n t u r e . T h i s F i r s t
S u p p l e m e n t a l I n d e n t u r e s h a l l t a k e e f f e c t u p o n i t s e x e c u t i o n a n d d e l i v e r y .
S e c t i o n 1 7 . 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 F i r s t S u p p l e m e n t a l
I n d e n t u r e m a y b e e x e c u t e d i n s e v e r a l c o u n t e r p a r t s , e a c h o f w h i c h s h a l l b e d e e m e d a n o r i g i n a l ,
a n d a l l o f w h i c h s h a l l c o n s t i t u t e b u t o n e a n d t h e s a m e i n s t r u m e n t .
O H S U S A : 2 6 0 9 4 1 3 3 5 . 5 - 1 1 -
2 1 1
IN WITNESS WHEREOF, the parties hereto have executed this First
Supplemental Indenture by their officers thereunto duly authorized as of the day and year first •
written above.
Countersigned:.
Clerk of the Board
OHSUSA:260941335.5
RIVERSIDE COUNTY TRANSPORTATION
COMMISSION
By: --------------------------------
Executive Director
THE BANK OF NEW YORK MELLON TRUST
COMPANY, N.A., as Trustee
By: --------------------------------
Authorized Officer
212
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N o . R - - A -
I N T E R E S T R A T E
E X H I B I T A - 1
F O R M O F 2 0 1 3 S E R I E S A B O 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
T o l l R e v e n u e B o n d
( F i x e d R a t e B o n d ) , 2 0 1 3 S e r i e s A
M A T U R I T Y
J u n e 1 , 2 0 _
I S S U E D A T E
[ ] , 2 0 1
R E G I S T E R E D O W N E R : C e d e & C o .
P R I N C I P A L A M O U N T :
D o l l a r s
$ _ _ _ _ _
C U S I P
R I V E R S I D E C O U N T Y T R A N S P O R T A T I O N C O M M I S S I O N , a p u b l i c e n t i t y d u l y
o r g a n i z e d a n d e x i s t i n g u n d e r t h e l a w s o f t h e S t a t e o f C a l i f o r n i a ( t h e " C o m m i s s i o n " ) , f o r v a l u e
r e c e i v e d , h e r e b y p r o m i s e s t o p a y ( b u t s o l e l y f r o m t h e T r u s t E s t a t e a s h e r e i n a f t e r r e f e r r e d t o ) i n
l a w f u l m o n e y o f t h e U n i t e d S t a t e s o f A m e r i c a , t o t h e r e g i s t e r e d o w n e r o r r e g i s t e r e d a s s i g n s , o n
t h e m a t u r i t y d a t e s e t f o r t h a b o v e , u n l e s s r e d e e m e d p r i o r t h e r e t o a s h e r e i n a f t e r p r o v i d e d , t h e
p r i n c i p a l a m o u n t s p e c i f i e d a b o v e , u n t i l t h e p r i n c i p a l h e r e o f s h a l l h a v e b e e n p a i d , a t t h e i n t e r e s t
r a t e p e r a n n u m s p e c i f i e d a b o v e b a s e d o n a 3 6 0 - d a y y e a r o f t w e l v e 3 0 - d a y m o n t h s , p a y a b l e o n
D e c e m b e r 1 , 2 0 1 3 a n d s e m i a n n u a l l y t h e r e a f t e r o n J u n e 1 a n d D e c e m b e r 1 a n d a t m a t u r i t y o r
u p o n t h e p r i o r r e d e m p t i o n t h e r e o f ( e a c h , a n " I n t e r e s t P a y m e n t D a t e " ) . T h i s B o n d s h a l l b e a r
i n t e r e s t f r o m t h e l a t e s t o f : ( i ) i t s I s s u e D a t e ; ( i i ) t h e m o s t r e c e n t I n t e r e s t P a y m e n t D a t e t o w h i c h
i n t e r e s t h a s b e e n p a i d o r d u l y p r o v i d e d f o r , o r ( i i i ) i f t h e d a t e o f a u t h e n t i c a t i o n o f t h i s B o n d i s
a f t e r a R e c o r d D a t e b u t p r i o r t o t h e i m m e d i a t e l y s u c c e e d i n g I n t e r e s t P a y m e n t D a t e , t h e I n t e r e s t
P a y m e n t D a t e i m m e d i a t e l y s u c c e e d i n g s u c h d a t e o f a u t h e n t i c a t i o n .
A s l o n g a s 2 0 1 3 S e r i e s A B o n d s a r e B o o k - E n t r y B o n d s , p r i n c i p a l o f a n d p r e m i u m , i f a n y ,
a n d i n t e r e s t o n t h e 2 0 1 3 S e r i e s A B o n d s s h a l l b e p a y a b l e b y w i r e t r a n s f e r t o t h e S e c u r i t i e s
D e p o s i t o r y i n l a w f u l m o n e y o f t h e U n i t e d S t a t e s o f A m e r i c a .
I f t h e 2 0 1 3 S e r i e s A B o n d s c e a s e t o b e B o o k - E n t r y B o n d s , p r i n c i p a l o f a n d p r e m i u m , i f a n y ,
o n t h e 2 0 1 3 S e r i e s A B o n d s s h a l l b e p a y a b l e w h e n d u e u p o n p r e s e n t a t i o n a n d s u r r e n d e r t h e r e o f
a t t h e P r i n c i p a l O f f i c e o f T h e B a n k o f N e w Y o r k M e l l o n T r u s t C o m p a n y , N . A . , a s t r u s t e e ( t h e
" T r u s t e e " ) a n d i n t e r e s t s h a l l b e p a y a b l e b y f i r s t c l a s s m a i l 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 t o t h e
O w n e r s t h e r e o f a s o f t h e c l o s e o f b u s i n e s s o n t h e R e c o r d D a t e ; p r o v i d e d , h o w e v e r , t h a t O w n e r s
o f $ 1 , 0 0 0 , 0 0 0 o r m o r e i n A c c r e t e d V a l u e o f 2 0 1 3 S e r i e s A B o n d s m a y , a t a n y t i m e p r i o r t o a
R e c o r d D a t e , g i v e t h e T r u s t e e w r i t t e n i n s t r u c t i o n s f o r p a y m e n t o f s u c h i n t e r e s t o n e a c h
s u c c e e d i n g i n t e r e s t p a y m e n t d a t e b y w i r e t r a n s f e r . A s u s e d h e r e i n , " R e c o r d D a t e " m e a n s t h e
A - 1
O H S U S A : 2 6 0 9 4 1 3 3 5 . 5
2 1 3
fifteenth day (whether or not a Business Day) of the month preceding such Interest Payment ~-•
This Bond is one of a duly authorized issue of bonds of the Commission, designated as
"Riverside County Transportation Commission Toll Revenue Bonds" (the "Bonds"), of the series
designated above, all of which are being issued pursuant to the provisions of Division 12 of the
Public Utilities Code of the State of California (the "Act") and a Master Indenture, dated as of
June 1, 2013 (the "Master Indenture"), as supplemented, including as supplemented by a First
Supplemental Indenture, dated as of 1, 20 1_ (the "First Supplemental Indenture"), each
between the Commission and the Trustee. The Master Indenture, as supplemented and amended
from time to time pursuant to its terms, including as supplemented by the First Supplemental
Indenture, is hereinafter referred to as the "Indenture." Said authorized issue of Bonds is not
limited in initial Accreted Value and consists or may consist of one or more series of varying
denominations, dates, maturities, interest rates and other provisions, as in the Indenture provided.
Capitalized terms used herein and not otherwise defined shall have the meaning given such terms
in the Indenture.
THIS BOND IS A SPECIAL OBLIGATION OF THE COMMISSION SECURED
SOLELY BY THE TRUST ESTATE AS DEFINED AND PROVIDED IN THE
INDENTURE AND THE COMMISSION IS NOT OBLIGATED TO PAY THIS BOND
EXCEPT FROM SUCH TRUST ESTATE. THIS BOND DOES NOT CONSTITUTE A
DEBT OR LIABILITY OF THE STATE OF CALIFORNIA OR ANY POLITICAL
SUBDIVISION OF THE STATE OTHER THAN THE COMMISSION. NEITHER THE
FULL FAITH AND CREDIT NOR THE TAXING POWER OF THE STATE OF
CALIFORNIA OR ANY POLITICAL SUBDIVISION OF THE SATE OF CALIFORNIA
IS PLEDGED TO THE PAYMENT OF PRINCIPAL OR INTEREST OF THIS BOND.
Reference is hereby made to the Indenture and the Act for a description of the terms on
which the Bonds are issued and to be issued, the provisions with regard to the nature and extent
of the Trust Estate and the rights of the registered owners of the Bonds and all the terms of the
Indenture are hereby incorporated herein and constitute a contract between the Commission and
the registered owner from time to time of this Bond, and to all the provisions thereof the
registered owner of this Bond, by its acceptance hereof, consents and agrees. Additional Bonds
may be issued and other indebtedness may be incurred on a parity with the Series of Bonds of
which this Bond is a part, but only subject to the conditions and limitations contained in the
Indenture.
This Bond is secured by and payable both as to principal and interest, and as to any premium
upon the redemption hereof, solely from the Trust Estate as defined in the Indenture, subject only
to the provisions of the Indenture permitting application thereof for the purposes and on the
terms and conditions set forth therein, and the Commission is not obligated to pay this Bond
except from said Trust Estate.
•
The Bonds of the Series of Bonds of which this Bond is a part maturing on or before June 1,
20_ are not subject to redemption prior to their respective stated maturities. The Bonds of the
Series of Bonds of which this Bond is a part 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 •
A-2
OHSUSA:260941335.5
214
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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 ( a n d i f i n p a r t , i n s u c h o r d e r o f m a t u r i t y a s t h e
C o m m i s s i o n s h a l l s p e c i f y a n d w i t h i n a m a t u r i t y b y l o t o r b y s u c h o t h e r m e t h o d a s t h e T r u s t e e
d e t e r m i n e s t o b e f a i r a n d r e a s o n a b l e a n d i n A u t h o r i z e d D e n o m i n a t i o n s ) , 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 s u c h 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 .
T h e B o n d s o f t h e S e r i e s o f B o n d s o f w h i c h t h i s B o n d i s a p a r t m a t u r i n g o n J u n e 1 , 2 0 L J
s h a l l b e s u b j e c t t o m a n d a t o r y r e d e m p t i o n p r i o r t o t h e i r s t a t e d m a t u r i t y , i n p a r t , f r o m S i n k i n g
F u n d I n s t a l l m e n t s r e q u i r e d b y a n d a s s p e c i f i e d i n t h e I n d e n t u r e , a t a r e d e m p t i o n p r i c e e q u a l t o
t h e p r i n c i p a l a m o u n t t h e r e o f , p l u s a c c r u e d 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 , o n J u n e 1 , 2 0 _ a n d o n e a c h J u n e 1 t h e r e a f t e r .
T h e r i g h t s a n d o b l i g a t i o n s o f t h e C o m m i s s i o n a n d o f t h e h o l d e r s a n d r e g i s t e r e d o w n e r s o f t h e
B o n d s o f t h e S e r i e s o f B o n d s o f w h i c h t h i s B o n d i s a p a r t m a y b e m o d i f i e d o r a m e n d e d a t a n y
t i m e i n t h e m a n n e r , t o t h e e x t e n t , a n d u p o n t h e t e r m s p r o v i d e d i n t h e I n d e n t u r e , w h i c h p r o v i d e ,
i n c e r t a i n c i r c u m s t a n c e s , f o r m o d i f i c a t i o n s a n d a m e n d m e n t s w i t h o u t t h e c o n s e n t o f o r n o t i c e t o
t h e r e g i s t e r e d o w n e r s o f B o n d s .
T h i s B o n d i s t r a n s f e r a b l e o r e x c h a n g e a b l e a s p r o v i d e d i n t h e I n d e n t u r e , o n l y u p o n t h e B o n d
R e g i s t e r a t t h e P r i n c i p a l O f f i c e o f t h e T r u s t e e , b y t h e r e g i s t e r e d o w n e r h e r e o f i n p e r s o n , o r b y
s u c h o w n e r ' s d u l y a u t h o r i z e d a t t o r n e y , u p o n s u r r e n d e r o f t h i s B o n d a t t h e P r i n c i p a l O f f i c e o f t h e
T r u s t e e , t o g e t h e r w i t h a w r i t t e n i n s t r u m e n t o f t r a n s f e r s a t i s f a c t o r y t o t h e T r u s t e e d u l y e x e c u t e d
b y t h e r e g i s t e r e d o w n e r o r s u c h o w n e r ' s d u l y a u t h o r i z e d a t t o r n e y , a n d t h e r e u p o n a n e w B o n d o r
B o n d s o f t h e s a m e s e r i e s , m a t u r i t y , i n t e r e s t r a t e a n d i n t h e s a m e A c c r e t e d V a l u e , s h a l l b e i s s u e d
t o t h e t r a n s f e r e e i n e x c h a n g e t h e r e f o r a s p r o v i d e d i n t h e I n d e n t u r e , u p o n p a y m e n t o f a n y c h a r g e s
t h e r e i n p r e s c r i b e d .
T h e p e r s o n i n . w h o s e n a m e t h i s B o n d i s r e g i s t e r e d s h a l l b e d e e m e d a n d r e g a r d e d a s t h e
a b s o l u t e o w n e r h e r e o f f o r a l l p u r p o s e s , i n c l u d i n g r e c e i v i n g p a y m e n t o f , o r o n a c c o u n t o f , t h e
p r i n c i p a l o f a n d p r e m i u m a n d i n t e r e s t d u e h e r e o n .
I t i s h e r e b y c e r t i f i e d a n d r e c i t e d t h a t a n y a n d a l l a c t s , c o n d i t i o n s a n d t h i n g s r e q u i r e d t o e x i s t ,
t o h a p p e n a n d t o b e p e r f o r m e d , p r e c e d e n t t o a n d i n t h e i n c u r r i n g o f t h e i n d e b t e d n e s s e v i d e n c e d
b y t h i s B o n d , a n d i n t h e i s s u i n g o f t h i s B o n d , e x i s t , h a v e h a p p e n e d a n d h a v e b e e n 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 o f C a l i f o r n i a
a n d t h e A c t , a n d t h a t t h i s 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 s e c u r e d
b y t h e T r u s t E s t a t e , 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 o f C a l i f o r n i a a n d t h e A c t .
T h i s B o n d s h a l l n o t b e e n t i t l e d t o a n y b e n e f i t u n d e r t h e I n d e n t u r e , o r b e c o m e v a l i d o r
o b l i g a t o r y f o r a n y p u r p o s e , u n t i l 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 h e r e o n e n d o r s e d s h a l l h a v e b e e n
m a n u a l l y s i g n e d b y t h e T r u s t e e .
A - 3
O H S U S A : 2 6 0 9 4 1 3 3 5 . 5
2 1 5
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 all as of the Issue Date set forth above.
(Seal)
Countersigned:
By:. ____________ ___
ChiefFinancial Officer
OHSUSA:260941335.5
RIVERSIDE COUNTY TRANSPORTATION
COMMISSION
By: __________ _:__ __ _
Chair of the Board of Commissioners
A-4
216
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"
"
[ F O R M O F C E R T I F I C A T E O F A U T H E N T I C A T I O N )
T h i s B o n d i s o n e o f t h e 2 0 1 3 S e r i e s A B o n d s d e s c r i b e d i n t h e w i t h i n m e n t i o n e d I n d e n t u r e a n d
w a s a u t h e n t i c a t e d o n t h e d a t e s e t f o r t h b e l o w .
D a t e o f A u t h e n t i c a t i o n : - - - - - - - - - - - - - - - - - - - - - -
T H E B A N K O F N E W Y O R K M E L L O N T R U S T
C O M P A N Y , N . A . ,
a s T r u s t e e
B y : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
A u t h o r i z e d O f f i c e r
[ 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 .
A - 5
O H S U S A : 2 6 0 9 4 1 3 3 5 . 5
2 1 7
[FORM OF ASSIGNMENT]
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
(Please Print or Type Name and Address of Assignee)
. PLEASE INSERT SOCIAL SECURITY OR OTHER
TAX IDENTIFICATION NUMBER OF ASSIGNEE
the within bond and all rights thereunder, and hereby irrevocably constitutes and appoints
to transfer the within Bond on the books kept for registration thereof with full power of
substitution in the premises.
Dated:
Signature:
SIGNATURE GUARANTEED:
(Signature of Assignor)
Notice: The signature on this assignment must
correspond with the name of the Registered Owner as it
appears upon the face of the within Bond in every
particular without alteration or enlargement or any
change whatsoever.
Notice: Signature must be guaranteed by an
eligible guarantor firm.
A-6
OHSUSA:260941335.5
218
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N o . R - - B -
A C C R E T I O N R A T E
E X H I B I T A - 2
F O R M O F 2 0 1 3 S E R I E S B B O 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
T o l l R e v e n u e B o n d
( C a p i t a l A p p r e c i a t i o n B o n d ) , 2 0 1 3 S e r i e s B
M A T U R I T Y
J u n e 1 , 2 0 _
I S S U E D A T E
[ ] , 2 0 1
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 :
M A T U R I T Y V A L U E :
$ _ _ _ _ _
C U S I P
D o l l a r s
D o l l a r s
R I V E R S I D E C O U N T Y T R A N S P O R T A T I O N C O M M I S S I O N , a p u b l i c e n t i t y d u l y
o r g a n i z e d a n d e x i s t i n g u n d e r t h e l a w s o f t h e S t a t e o f C a l i f o r n i a ( t h e " C o m m i s s i o n " ) , f o r v a l u e
r e c e i v e d , h e r e b y p r o m i s e s t o p a y ( b u t s o l e l y f r o m t h e T r u s t E s t a t e a s h e r e i n a f t e r r e f e r r e d t o ) i n
l a w f u l m o n e y o f t h e U n i t e d S t a t e s o f A m e r i c a , t o t h e r e g i s t e r e d o w n e r o r r e g i s t e r e d a s s i g n s , o n
t h e m a t u r i t y d a t e s e t f o r t h a b o v e , t h e " a c c r e t e d v a l u e " h e r e o f o n t h e m a t u r i t y d a t e s p e c i f i e d
a b o v e , c o n s i s t i n g . o f t h e p r i n c i p a l a m o u n t h e r e o f p l u s i n t e r e s t e a r n e d t h e r e o n a n d a c c u m u l a t e d
f r o m t h e d a t e h e r e o f t o s u c h d a t e ( i n a c c o r d a n c e w i t h t h e M a s t e r I n d e n t u r e a n d F i r s t
S u p p l e m e n t a l I n d e n t u r e h e r e i n a f t e r d e f i n e d a n d a s r e f l e c t e d i n t h e T a b l e o f A c c r e t e d V a l u e s
h e r e i n a f t e r s e t f o r t h ; p r o v i d e d , t h a t a n y a c c r e t e d v a l u e d e t e r m i n e d i n a c c o r d a n c e w i t h t h e F i r s t
S u p p l e m e n t a l I n d e n t u r e s h a l l p r e v a i l o v e r a n y a c c r e t e d v a l u e s g i v e n i n t h e T a b l e o f A c c r e t e d
V a l u e s ) , c o m p o u n d e d o n J u n e 1 a n d D e c e m b e r 1 o f e a c h y e a r c o m m e n c i n g o n D e c e m b e r 1 ,
2 0 1 3 , a s s u m i n g i n a n y s u c h s e m i a n n u a l p e r i o d t h a t t h i s b o n d s h a l l i n c r e a s e i n v a l u e b y t h e
a c c u m u l a t i o n o f e a r n e d i n t e r e s t i n e q u a l d a i l y a m o u n t s o n t h e b a s i s o f a 3 6 0 - d a y y e a r o f t w e l v e
3 0 - d a y m o n t h s , u n t i l t h e o b l i g a t i o n r e p r e s e n t e d h e r e b y s h a l l h a v e b e e n d i s c h a r g e d .
A s l o n g a s 2 0 1 3 S e r i e s B B o n d s a r e B o o k - E n t r y B o n d s , 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 3
S e r i e s B B o n d s s h a l l b e p a y a b l e b y w i r e t r a n s f e r t o t h e S e c u r i t i e s D e p o s i t o r y i n l a w f u l m o n e y o f
t h e U n i t e d S t a t e s o f A m e r i c a .
I f t h e 2 0 1 3 S e r i e s B B o n d s c e a s e t o b e B o o k - E n t r y B o n d s , p r i n c i p a l o f a n d p r e m i u m , i f a n y ,
o n t h e 2 0 1 3 S e r i e s B B o n d s s h a l l b e p a y a b l e w h e n d u e u p o n p r e s e n t a t i o n a n d s u r r e n d e r t h e r e o f
a t t h e P r i n c i p a l O f f i c e o f T h e B a n k o f N e w Y o r k M e l l o n T r u s t C o m p a n y , N . A . , a s t r u s t e e ( t h e
" T r u s t e e " ) a n d i n t e r e s t s h a l l b e p a y a b l e b y f i r s t c l a s s m a i l 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 t o t h e
O w n e r s t h e r e o f a s o f t h e c l o s e o f b u s i n e s s o n t h e R e c o r d D a t e ; p r o v i d e d , h o w e v e r , t h a t O w n e r s
o f $ 1 , 0 0 0 , 0 0 0 o r m o r e i n a g g r e g a t e M a t u r i t y V a l u e o f 2 0 1 3 S e r i e s B B o n d s m a y , a t a n y t i m e
p r i o r t o a R e c o r d D a t e , g i v e t h e T r u s t e e w r i t t e n i n s t r u c t i o n s f o r p a y m e n t o f s u c h i n t e r e s t o n e a c h
s u c c e e d i n g i n t e r e s t p a y m e n t d a t e b y w i r e t r a n s f e r . A s u s e d h e r e i n , " R e c o r d D a t e " m e a n s t h e
A - 7
O H S U S A : 2 6 0 9 4 1 3 3 5 . 5
2 1 9
fifteenth day (whether or not a Business Day) of the month preceding such Interest Payment •
Date.
This Bond is one of a duly authorized issue of bonds of the Commission, designated as
"Riverside County Transportation Commission Toll Revenue Bonds" (the "Bonds"), ofthe series
designated above, all of which are being issued pursuant to the provisions of Division 12 of the
Public Utilities Code of the State of California (the "Act") and a Master Indenture, dated as of
June 1, 2013 (the "Master Indenture"), as supplemented, including as supplemented by a First
Supplemental Indenture, dated as of 1, 20 1_ (the "First Supplemental Indenture"), each
between the Commission and the Trustee. The Master Indenture, as supplemented and amended
from time to time pursuant to its terms, including as supplemented by the First Supplemental
Indenture, is hereinafter referred to as the "Indenture." Said authorized issue of Bonds is not
limited in initial Accreted Value and consists or may consist of one or more series of varying
denominations, dates, maturities, interest rates and other provisions, as in the Indenture provided.
Capitalized terms used herein and not otherwise defined shall have the meaning given such terms
in the Indenture.
THIS BOND IS A SPECIAL OBLIGATION OF THE COMMISSION SECURED
SOLELY BY THE TRUST ESTATE AS DEFINED AND PROVIDED IN THE
INDENTURE AND THE COMMISSION IS NOT OBLIGATED TO PAY THIS BOND
EXCEPT FROM SAID TRUST ESTATE. THIS BOND DOES NOT CONSTITUTE A
DEBT OR LIABILITY OF THE STATE OF CALIFORNIA OR ANY POLITICAL
SUBDIVISION OF THE STATE OTHER THAN THE COMMISSION. NEITHER THE
FULL FAITH AND CREDIT NOR THE TAXING POWER OF THE STATE OF
CALIFORNIA OR ANY POLITICAL SUBDIVISION OF THE SATE OF CALIFORNIA
IS PLEDGED TO THE PAYMENT OF PRINCIPAL OR INTEREST OF THIS BOND.
Reference is hereby made to the Indenture and the Act for a description of the terms on
which the Bonds are issued and to be issued, the provisions with regard to the nature and extent
of the Trust Estate and the rights of the registered owners of the Bonds and all the terms of the
Indenture are hereby incorporated herein and constitute a contract between the Commission and
the registered owner from time to time of this Bond, and to all the provisions thereof the
registered owner of this Bond, by its acceptance hereof, consents and agrees. Additional Bonds
may be issued and other indebtedness may be incurred on a parity with the Series of Bonds of
which this Bond is a part, but only subject to the conditions and limitations contained in the
Indenture.
This Bond is secured by and payable both as to principal and interest, and as to any premium
upon the redemption hereof, solely from the Trust Estate as defined in the Indenture, subject only
to the provisions of the Indenture permitting application thereof for the purposes and on the
terms and conditions set forth therein, and the Commission is not obligated to pay this Bond
except from such Trust Estate.
The Bonds of the Series of Bonds of which this Bond is a part are not subject to redemption
prior to maturity.
A-8
OHS USA:260941335 .5
220
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T h e r i g h t s a n d o b l i g a t i o n s o f t h e C o m m i s s i o n a n d o f t h e h o l d e r s a n d r e g i s t e r e d o w n e r s o f t h e
B o n d s o f t h e S e r i e s o f B o n d s o f w h i c h t h i s B o n d i s a p a r t m a y b e m o d i f i e d o r a m e n d e d a t a n y
t i m e i n t h e m a n n e r , t o t h e e x t e n t , a n d u p o n t h e t e r m s p r o v i d e d i n t h e I n d e n t u r e , w h i c h p r o v i d e ,
i n c e r t a i n c i r c u m s t a n c e s , f o r m o d i f i c a t i o n s a n d a m e n d m e n t s w i t h o u t t h e c o n s e n t o f o r n o t i c e t o
t h e r e g i s t e r e d o w n e r s o f B o n d s .
T h i s B o n d i s t r a n s f e r a b l e o r e x c h a n g e a b l e a s p r o v i d e d i n t h e I n d e n t u r e , o n l y u p o n t h e B o n d
R e g i s t e r a t t h e P r i n c i p a l O f f i c e o f t h e T r u s t e e , b y t h e r e g i s t e r e d o w n e r h e r e o f i n p e r s o n , o r b y
s u c h o w n e r ' s d u l y a u t h o r i z e d a t t o r n e y , u p o n s u r r e n d e r o f t h i s B o n d a t t h e P r i n c i p a l O f f i c e o f t h e
T r u s t e e , t o g e t h e r w i t h a w r i t t e n i n s t r u m e n t o f t r a n s f e r s a t i s f a c t o r y t o t h e T r u s t e e d u l y e x e c u t e d
b y t h e r e g i s t e r e d o w n e r o r s u c h o w n e r ' s d u l y a u t h o r i z e d a t t o r n e y , a n d t h e r e u p o n a n e w B o n d o r
B o n d s o f t h e s a m e s e r i e s , m a t u r i t y , i n t e r e s t r a t e a n d i n t h e s a m e A c c r e t e d V a l u e , s h a l l b e i s s u e d
t o t h e t r a n s f e r e e i n e x c h a n g e t h e r e f o r a s p r o v i d e d i n t h e I n d e n t u r e , u p o n p a y m e n t o f a n y c h a r g e s
t h e r e i n p r e s c r i b e d .
T h e p e r s o n i n w h o s e n a m e t h i s B o n d i s r e g i s t e r e d s h a l l b e d e e m e d a n d r e g a r d e d a s t h e
a b s o l u t e o w n e r h e r e o f f o r a l l p u r p o s e s , i n c l u d i n g r e c e i v i n g , p a y m e n t o f , o r o n a c c o u n t o f , t h e
p r i n c i p a l o f a n d p r e m i u m a n d i n t e r e s t d u e h e r e o n .
I t i s h e r e b y c e r t i f i e d a n d r e c i t e d t h a t a n y a n d a l l a c t s , c o n d i t i o n s a n d t h i n g s r e q u i r e d t o e x i s t ,
t o h a p p e n a n d t o b e p e r f o r m e d , p r e c e d e n t t o a n d i n t h e i n c u r r i n g o f t h e i n d e b t e d n e s s e v i d e n c e d
b y t h i s B o n d , a n d i n t h e i s s u i n g o f t h i s B o n d , e x i s t , h a v e h a p p e n e d a n d h a v e b e e n 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 o f C a l i f o r n i a
a n d t h e A c t , a n d t h a t t h i s 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 s e c u r e d
b y t h e T r u s t E s t a t e , 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 o f C a l i f o r n i a a n d t h e A c t .
T h i s B o n d s h a l l n o t b e e n t i t l e d t o a n y b e n e f i t u n d e r t h e I n d e n t u r e , o r b e c o m e v a l i d o r
o b l i g a t o r y f o r a n y p u r p o s e , u n t i l 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 h e r e o n e n d o r s e d s h a l l h a v e b e e n
m a n u a l l y s i g n e d b y t h e T r u s t e e .
A - 9
O H S U S A : 2 6 0 9 4 1 3 3 5 . 5
2 2 1
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 all as of the Issue Date set forth above.
(Seal)
Countersigned:
By: ___________ _
Chief Financial Officer
OHSUSA:260941335.5
RIVERSIDE COUNTY TRANSPORTATION
COMMISSION
By: _____________ -,---_
Chair of the Board of Commissioners
A-10
222
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"
"
( F O R M O F C E R T I F I C A T E O F A U T H E N T I C A T I O N ]
T h i s B o n d i s o n e o f t h e 2 0 1 3 S e r i e s B B o n d s d e s c r i b e d i n t h e w i t h i n m e n t i o n e d I n d e n t u r e a n d
w a s a u t h e n t i c a t e d o n t h e d a t e s e t f o r t h b e l o w .
D a t e o f A u t h e n t i c a t i o n : - - - - - - - - - - - - - - - - - - - - - -
T H E B A N K O F N E W Y O R K M E L L O N T R U S T
C O M P A N Y , N . A . ,
a s T r u s t e e
A u t h o r i z e d O f f i c e r
[ 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 .
A - l l
O H S U S A : 2 6 0 9 4 1 3 3 5 . 5
2 2 3
[FORM OF ASSIGNMENT]
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
(Please Print or Type Name and Address of Assignee)
PLEASE INSERT SOCIAL SECURITY OR OTHER
TAX IDENTIFICATION NUMBER OF ASSIGNEE
the within bond and all rights thereunder, and hereby irrevocably constitutes and appoints
to transfer the within Bond on the books kept for registration thereof with full power of
substitution in the premises.
Dated:
Signature:
SIGNATURE GUARANTEED:
(Signature of Assignor)
Notice: The signature on this assignment must
correspond with the name of the Registered Owner as it
appears upon the face of the within Bond in every
particular without alteration or enlargement or any
change whatsoever.
Notice: Signature must be guaranteed by an
eligible guarantor firm.
A-12
OHSUSA:260941335.5
224
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E X H I B I T B
N O T I C E A D D R E S S E S
T o t h e C o m m i s s i o n :
R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n
P . O . B o x 1 2 0 0 8
R i v e r s i d e , C a l i f o r n i a 9 2 5 0 2
A t t e n t i o n : C h i e f F i n a n c i a l O f f i c e r
T e l e p h o n e : ( 9 5 1 ) 7 8 7 - 7 1 4 1
F a x : ( 9 5 1 ) 7 8 7 - 7 9 2 0
T o t h e T r u s t e e :
T h e B a n k o f N e w Y o r k M e l l o n T r u s t C o m p a n y , N . A .
[ A d d r e s s t o c o m e ]
T o t h e R a t i n g A g e n c i e s :
S t a n d a r d & P o o r ' s R a t i n g s S e r v i c e s
5 5 W a t e r S t r e e t , 3 8 t h F l o o r
N e w Y o r k , N e w Y o r k 1 0 0 4 1
T e l e p h o n e N o . : 2 1 2 - 4 3 8 - 2 0 0 0
F a c s i m i l e N o . : 2 1 2 - 4 3 8 - 2 1 5 7
p u b f i n _ s t r u c t u r e d @ s t a n d a r d a n d p o o r s . c o m
M o o d y ' s I n v e s t o r s S e r v i c e
M S P G S u r v e i l l a n c e
9 9 C h u r c h S t r e e t , 9 t h F l o o r
N e w Y o r k , N e w Y o r k 1 0 0 0 7
F i t c h R a t i n g s
O n e S t a t e S t r e e t P l a z a
N e w Y o r k , N e w Y o r k 1 0 0 0 4
O H S U S A : 2 6 0 9 4 1 3 3 5 . 5
B - 1
2 2 5
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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
b e t w e e n
A T T A C H M E N T 5
O H & S D r a f t
0 3 / 2 6 / 2 0 1 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
a n d
T H E B A N K O F N E W Y O R K M E L L O N T R U S T C O M P A N Y , N . A . ,
a s T r u s t e e
O H S U S A : 7 5 3 3 8 7 9 4 5 . 2
D a t e d a s o f J u n e 1 , 2 0 1 3
R e l a t i n g 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 C o m m i s s i o n
S u b o r d i n a t e T o l l R e v e n u e B o n d s ,
2 0 1 3 T I F I A S e r i e s
( S u p p l e m e n t i n g t h e M a s t e r 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 1 3 )
2 2 6
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S e c t i o n 1 8 . 0 1 .
S e c t i o n 1 8 . 0 2 .
S e c t i o n 1 9 . 0 1 .
S e c t i o n 1 9 . 0 2 .
S e c t i o n 1 9 . 0 3 .
S e c t i o n 2 0 . 0 1 .
S e c t i o n 2 0 . 0 2 .
S e c t i o n 2 0 . 0 3 .
S e c t i o n 2 0 . 0 4 .
S e c t i o n 2 0 . 0 5 .
S e c t i o n 2 0 . 0 6 .
S e c t i o n 2 0 . 0 7 .
T A B L E O F C O N T E N T S
A R T I C L E X V I I I
D E F I N I T I O N S
P a g e
D e f i n i t i o n s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
R u l e s o f C o n s t r u c t i o n . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
A R T I C L E X I X
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
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
R e c i t a l i n B o n d s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
A R T I C L E X X
A U T H O R I Z A T I O N O F T H E 2 0 1 3 T I F I A B O N D
A u t h o r i z a t i o n ; 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
P r i o r i t y a n d L i e n ; E f f e c t o f B a n k r u p t c y R e l a t e d E v e n t o n 2 0 1 3 T I F I A
B o n d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
P u r p o s e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
C o n d i t i o n s T o D e l i v e r y o f 2 0 1 3 B o n d s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
D i s p o s i t i o n o f P r o c e e d s o f 2 0 1 3 B o n d s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
A R T I C L E X X I
T R A N S F E R S ; S U B O R D I N A T E O B L I G A T I O N S R E S E R V E F U N D
S e c t i o n 2 1 . 0 1 .
S e c t i o n 2 1 . 0 2 .
S e c t i o n 2 2 . 0 1 .
S e c t i o n 2 3 . 0 5 .
S e c t i o n 2 3 . 0 6 .
O H S U S A : 7 5 3 3 8 7 9 4 5 . 2
T r a n s f e r s t o t h e D e b t S e r v i c e F u n d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
S u b o r d i n a t e O b l i g a t i o n s R e s e r v e F u n d . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
A R T I C L E X X I I
O T H E R P R O V I S I O N S
T a x S t a t u s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
A R T I C L E X X I I I
M I S C E L L A N E O U S
E f f e c t i v e D a t e o f 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
E x e c u t i o n i n C o u n t e r p a r t s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
- I -
2 2 7
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T H I S 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 J u n e 1 , 2 0 1 3 ( t h i s
" 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 " ) , b e t w e e n t h e 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 , a p u b l i c e n t i t y d u l y 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 T H E B A N K O F N E W Y O R K M E L L O N T R U S T C O M P A N Y , N . A . , 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 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 o g e t h e r w i t h a n y s u c c e s s o r t h e r e t o , 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 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 i s s u p p l e m e n t a l t o t h e M a s t e r
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 1 3 ( 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 S u b o r d i n a t e
O b l i g a t i o n 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 S u b o r d i n a t e
O b l i g a t i o n s a r e t o b e s e c u r e d b y t h e T r u s t E s t a t e i n a c c o r d a n c e w i t h t h e I n d e n t u r e ;
W H E R E A S , t h e C o m m i s s i o n a n d t h e T r u s t e e d e s i r e t o e n t e r i n t o t h i s 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 o s e t f o r t h t h e t e r m s o f t h e C o m m i s s i o n ' s o b l i g a t i o n s t o t h e T I F I A
L e n d e r , r e l a t i n g t o 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 S e c u r e d L o a n A g r e e m e n t d a t e d a s o f J u n e 1 ,
2 0 1 3 ( t h e " 2 0 1 3 T I F I A L o a n A g r e e m e n t " ) a u t h o r i z i n g a n d s e t t i n g f o r t h t h e t e r m s a n d c o n d i t i o n s
o f a T I F I A L o a n ( t h e " 2 0 1 3 T I F I A L o a n " ) f r o m t h e T I F I A L e n d e r t o t h e C o m m i s s i o n , w h i c h
T I F I A L o a n i s t o b e e v i d e n c e d b y a b o n d e n t i t l 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
T o l l R e v e n u e B o n d s , 2 0 1 3 T I F I A S e r i e s " ( t h e " 2 0 1 3 T I F I A B o n d " ) , t o b e i s s u e d i n a n a g g r e g a t e
p r i n c i p a l a m o u n t n o t t o e x c e e d $ ; a n d
W H E R E A S , t h e 2 0 1 3 T I F I A L o a n A g r e e m e n t i s b e i n g e n t e r e d i n t o a s i n d e b t e d n e s s
u n d e r , p u r s u a n t t o a n d i n a c c o r d a n c e w i t h t h e A c t , a n d t h e p r o c e e d s o f t h e 2 0 1 3 T I F I A L o a n
m a y b e d i s b u r s e d b y t h e T I F I A L e n d e r t o b e u s e d t o f i n a n c e t h e R i v e r s i d 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 ; 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 t h e 2 0 1 3
T I F I A B o n d , a s f u r t h e r p r o v i d e d i n t h i s 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 ;
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 V I I I
D E F I N I T I O N S
S e c t i o n 1 8 . 0 1 . D e f i n i t i o n s .
( a ) D e f i n i t i o n s . U n l e s s t h e c o n t e x t o t h e r w i s e r e q u i r e s , o r a s o t h e r w i s e
p r o v i d e d i n s u b s e c t i o n ( b ) o f t h i s S e c t i o n , a l l t e r m s d e f i n e d i n 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 , r e s p e c t i v e l y , i n t h i s 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 .
O H S U S A : 7 5 3 3 8 7 9 4 5 . 2
2 2 8
(b) Additional Definitions. Unless the context otherwise requires, the
following terms shall, for all purposes of this Second Supplemental Indenture, have the •
following meanings:
"Interest Payment Date" means, with respect to the 2013 TIFIA Bond, each
scheduled interest payment date as set forth in the Loan Amortization Schedule (as defined in the
TIFIA Loan Agreement), which shall occur on June 1 and December I of each applicable year,
or if such day is not a Business Day, then the Business Day succeeding such date.
"ISsue Date" _means the date of delivery of the 2013 TIFIA Bond to the TIFIA
Lender.
"Principal Payment Date" means, with respect to the 2013 TIFIA Bond, each
scheduled principal payment date as set forth in the Loan Amortization Schedule (as defined in
the TIFIA Loan Agreement), which shall occur on June 1 and December 1 of each applicable
year, or if such day is not a Business Day, then the Business Day succeeding such date.
"Record Date" means, with respect to the 2013 TIFIA Bonds, the fifteenth (15th)
day (whether or not a Business Day) of the month preceding the month in which such Interest
Payment Date occurs.
"Registration Books" has the meaning specified in Section 20.04(a).
"Second Supplemental Indenture" means this Second Supplemental Indenture,
dated as of June 1, 2013. · •
"Subordinate Obligations Reserve Required Balance" means (a) pnor to
[FUNDING DATE], $0, and (b) on and after [FUNDING DATE], [$20,000,000].
Section 18.02. Rules of Construction. Words of the masculine gender shall
be deemed and construed to include correlative words of the feminine and neuter genders.
Unless the context shall otherwise indicate, words importing the singular number shall include
the plural number and vice versa, and words importing persons shall include corporations and
associations, including public bodies, as well as natural persons. Defined terms shall include any
variant ofthe terms set forth in this Article XVIII.
The terms "hereby," "hereof," "hereto," "herein," "hereunder," and any similar
terms, as used in this Second Supplemental Indenture, refer to the Indenture.
OHSUSA:753387945.2 -2-
229
•
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A R T I C L E X I X
F I N D I N G S , D E T E R M I N A T I O N S A N D D I R E C T I O N S
S e c t i o n 1 9 . 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 3 T I F I A 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 h e r e o f 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 3 T I F I A B o n d s , a n y a n d a l l a c t s , c o n d i t i o n s a n d t h i n g s r e q u i r e d t o
e x i s t , t o h a p p e n a n d t o b e p e r f o r m e d , p r e c e d e n t t o a n d i n t h e i s s u a n c e t h e r e o f , w i l l e x i s t , w i l l
h a v e h a p p e n e d a n d w i l l h a v e b e e n p e r f o r m e d , i n d u e t i m e , � f o r m a n d m a n n e r , a s r e q u i r e d b y t h e
C o n s t i t u t i o n a n d s t a t u t e s o f t h e S t a t e .
S e c t i o n 1 9 . 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 3 T I F I A 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 3 T I F I A 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 3 T I F I A 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 3 T I F I A 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 3 T I F I A 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 , 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 n e i t h e r t h e f u l l 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 S t a t e i s p l e d g e d t o t h e p a y m e n t o f p r i n c i p a l o r i n t e r e s t o f t h e 2 0 1 3 T I F I A
B o n d , 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 s o f
t h e 2 0 1 3 T I F I A 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 1 9 . 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 3 T I F I A 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 3 T I F I A B o n d s i s a t i s s u e , a n d n o b o n a f i d e p u r c h a s e r o f a n y s u c h
2 0 1 3 T I F I A B o n d c o n t a i n i n g t h e 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 r e q u i r e d t o s e e t o t h e e x i s t e n c e
o f a n y f a c t , o r t o t h e p e r f o r m a n c e o f a n y c o n d i t i o n , o r t o t h e t a k i n g o f a n y p r o c e e d i n g , r e q u i r e d
p r i o r t o s u c h i s s u a n c e , o r t o t h e a p p l i c a t i o n o f t h e p u r c h a s e p r i c e f o r s u c h 2 0 1 3 T I F I A B o n d s .
A R T I C L E X X
A U T H O R I Z A T I O N O F T H E 2 0 1 3 T I F I A B O N D
S e c t i o n 2 0 . 0 1 . A u t h o r i z a t i o n ; 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 .
T h e C o m m i s s i o n h e r e b y a p p r o v e s t h e t e r m s a n d p r o v i s i o n s o f t h e 2 0 1 3 T I F I A L o a n A g r e e m e n t
s u b s t a n t i a l l y i n t h e f o r m a n d s u b s t a n c e c o n t a i n e d i n E x h i b i t A t o t h i s 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 . P u r s u a n t t o t h e p r o v i s i o n s o f t h i s I n d e n t u r e a n d t h e p r o v i s i o n s o f t h e A c t , a n d t o
e v i d e n c e t h e p a y m e n t o b l i g a t i o n s o f t h e C o m m i s s i o n u n d e r t h e 2 0 1 3 T I F I A L o a n , a S u b o r d i n a t e
O b l i g a t i o n e n t i t l e d t o t h e b e n e f i t , p r o t e c t i o n a n d s e c u r i t y o f s u c h p r o v i s i o n 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 t h e g r a n t o f t h e T r u s t E s t a t e i n t h e I n d e n t u r e s u b j e c t t o t h e p r o v i s i o n s o f t h e I n d e n t u r e ,
i s h e r e b y a u t h o r i z e d i n t h e a g g r e g a t e p r i n c i p a l a m o u n t o f $ S u c h S u b o r d i n a t e
O b l i g a t i o n s h a l l b e i s s u e d a s a C u r r e n t I n t e r e s t O b l i g a t i o n a n d s h a l l b e d e s i g n a t e d a s , a n d s h a l l
b e d i s t i n g u i s h e d f r o m t h e S u b o r d i n a t e O b l i g a t i o n s o f a l l o t h e r S e r i e s b y t h e t i t l 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 u b o r d i n a t e T o l l R e v e n u e B o n d s , 2 0 1 3 T I F I A S e r i e s . "
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Section 20.02.
2013 TIFIA Bond.
Priority and Lien; Effect of Bankruptcy Related Event on
(a) The principal and interest payment obligations pursuant to the TIFIA Loan
Agreement and evidenced by the 2013 TIFIA Bond shall, subject to the provisions of Section
20.07(b) of this Second Supplemental Indenture, constitute Subordinate Obligations under the
Indenture. All payment obligations under the TIFIA Loan Agreement, other than the obligations
to pay principal and interest thereunder and under the 2013 TIFIA Bond, shall constitute
Subordinate Obligations under the Indenture.
(b) Upon the occurrence and during the continuance of any Bankruptcy-
Related Event of the Commission, the 2013 TIFIA Bond shall, if the Owner of the 2013 TIFIA
Bond is the TIFIA Lender at such time, automatically and without action on the part of the
Owner of the 2013 TIFIA Bond or any other Person immediately become, and be of equal rank
and in parity with the, Senior Lien Bonds and the Owner of the 2013 TIFIA Bond shall be
entitled to all rights of an Owner of Senior Lien Bonds (including, without limitation, the right of
payment pro rata with other Senior Lien Bonds pursuant to the Indenture). Upon such event, the
money and investments held in the Subordinate Obligations Payment Fund allocable to the
payment of the 2013 TIFIA Bond shall be transferred by the Trustee to the applicable account
within the Senior Lien Bond Fund.
Section 20.03. Purpose. The 2013 TIFIA Bond is issued for the purpose of
financing the Riverside SR -91 Corridor Improvement Project [and paying costs of issuance].
Section 20.04. Form, Denomination, Numbers and. Letters. The 2013
TIFIA Bond shall not be issued as a book-entry-only Obligation. Initially there shall be
delivered hereunder one fully registered 2013 TIFIA Bond numbered R-1, without interest
coupons, with 2013 TIFIA Bonds issued in replacement thereof numbered consecutively from R-
2 upward, payable to the Owner thereof. The 2013 TIFIA Bond and the certificate of
authentication shall be substantially in the form attached hereto as Exhibit C, which form is
hereby approved and adopted as the form of the 2013 TIFIA Bond and as the form of the
certificate of authentication.
Section 20.05. Date, Maturities and Interest Rates.
(a) The 2013 TIFIA Bond (i) may and shall be prepaid prior to the respective
payment dates, in whole or in part, and at such time, in such amounts and with such notice as
may be provided in the 2013 TIFIA Loan Agreement and the form of2013 TIFIA Bond set forth
herein, and (ii) the principal of and interest on the 2013 TIFIA Bond shall be payable, all as
provided, and in the manner required or indicated, herein and in the form of 2013 TIFIA Bond
set forth herein and in the 2013 TIFIA Loan Agreement.
(b) The TIFIA Loan as evidenced by the 2013 TIFIA Bond shall mature on
the earlier of (i) June 1, 20_ and (ii) the date that is 35 years after the date of Substantial
Completion (as defined in the TIFIA Loan Agreement), and shall bear interest at the rate of
_% per annum (or the TIFIA Default Rate (as defined in the TIFIA Loan Agreement), if
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a p p l i c a b l e ) , p a y a b l e o n t h e d a t e s a n d i n a c c o r d a n c e w i t h t h e f o r m o f 2 0 1 3 T I F I A B o n d s e t f o r t h
h e r e i n .
( c ) T h e 2 0 1 3 T I F I A B o n d w i l l b e a s s u m e d t o a m o r t i z e i n a c c o r d a n c e w i t h i t s
s t a t e d t e r m s f o r p u r p o s e s o f c a l c u l a t i n g D e b t S e r v i c e . A n n u a l D e b t S e r v i c e o n t h e 2 0 1 3 T I F I A
B o n d s h a l l i n c l u d e o n l y a n n u a l T I F I A M a n d a t o r y D e b t S e r v i c e ; p r o v i d e d t h a t , f o r p u r p o s e s o f
s u c h c a l c u l a t i o n d u r i n g t h e p e r i o d p r i o r t o t h e D e b t S e r v i c e P a y m e n t C o m m e n c e m e n t D a t e ( a s
d e f i n e d i n t h e T I F I A L o a n A g r e e m e n t ) , t h e T I F I A M a n d a t o r y D e b t S e r v i c e s h a l l b e d e e m e d t o
b e z e r o , a n d s u c h T I F I A L o a n s h a l l b e t r e a t e d f o r p u r p o s e s o f a l l c a l c u l a t i o n s o f A n n u a l D e b t
S e r v i c e o r M a x i m u m A n n u a l D e b t S e r v i c e a s S u b o r d i n a t e O b l i g a t i o n s u n l e s s a n d u n t i l t h e
o c c u r r e n c e o f a B a n k r u p t c y - R e l a t e d E v e n t , a f t e r w h i c h o c c u r r e n c e s u c h T I F I A L o a n s h a l l b e
t r e a t e d a s P a r i t y O b l i g a t i o n s f o r s u c h p u r p o s e s .
( d ) T h e e n t i t y i n w h o s e n a m e t h e 2 0 1 3 T I F I A B o n d s h a l l b e r e g i s t e r e d i n t h e
r e g i s t r a t i o n b o o k s o f t h e T r u s t e e a t a n y t i m e s h a l l b e d e e m e d a n d t r e a t e d a s t h e a b s o l u t e O w n e r
t h e r e o f f o r a l l p u r p o s e s o f t h e I n d e n t u r e , w h e t h e r o r n o t t h e 2 0 1 3 T I F I A B o n d s h a l l b e o v e r d u e ,
a n d t h e C o m m i s s i o n a n d t h e T r u s t e e s h a l l n o t b e a f f e c t e d b y a n y n o t i c e t o t h e c o n t r a r y , b u t s u c h
r e g i s t r a t i o n m a y b e c h a n g e d a s h e r e i n p r o v i d e d . P a y m e n t o f , o r o n a c c o u n t o f , t h e p r i n c i p a l 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 o n t h e 2 0 1 3 T I F I A B o n d s h a l l b e m a d e o n l y t o s u c h O w n e r . A l l
s u c h p a y m e n t s s h a l l b e v a l i d a n d e f f e c t u a l t o s a t i s f y a n d d i s c h a r g e t h e l i a b i l i t y u p o n t h e 2 0 1 3
T I F I A B o n d t o t h e e x t e n t o f t h e s u m o r s u m s s o p a i d . P u r s u a n t t o S e c t i o n [ 1 7 ] o f t h e T I F I A
L o a n A g r e e m e n t , t h e O w n e r o f t h e 2 0 1 3 T I F I A B o n d s h a l l a t a l l t i m e s b e t h e p a r t y t o t h e T I F I A
L o a n A g r e e m e n t h a v i n g a l l r i g h t s a n d o b l i g a t i o n s o f t h e " T I F I A L e n d e r " t h e r e u n d e r .
A c c o r d i n g l y , t h e 2 0 1 3 T I F I A B o n d m a y b e t r a n s f e r r e d b y a n O w n e r o n l y t o a t r a n s f e r e e t h a t i s a
p a r t y t o t h e T I F I A L o a n A g r e e m e n t h a v i n g a l l r i g h t s a n d o b l i g a t i o n s o f t h e " T I F I A L e n d e r "
t h e r e u n d e r . T h e T r u s t e e s h a l l n o t r e g i s t e r a n y t r a n s f e r o r e x c h a n g e o f t h e 2 0 1 3 T I F I A B o n d
u n l e s s t h e O w n e r a n d t h e O w n e r ' s p r o s p e c t i v e t r a n s f e r e e d e l i v e r t o t h e T r u s t e e a l e t t e r
s u b s t a n t i a l l y i n t h e f o r m a s s e t f o r t h i n E x h i b i t B a t t a c h e d h e r e t o . T h e T r u s t e e m a y r e l y o n t h e
l e t t e r i n m a k i n g a t r a n s f e r o r e x c h a n g e o f t h e 2 0 1 3 T I F I A B o n d w i t h o u t a n y i n v e s t i g a t i o n .
( e ) T h e C o m m i s s i o n a p p o i n t s t h e T r u s t e e t o a c t a s t h e p a y i n g a g e n t f o r p a y i n g
t h e p r i n c i p a l o f a n d i n t e r e s t o n t h e 2 0 1 3 T I F I A B o n d a n d a n y o t h e r a m o u n t s u n d e r t h e 2 0 1 3
T I F I A L o a n A g r e e m e n t , a n d h e r e b y i n s t r u c t s t h e T r u s t e e t o m a k e t h e p a y m e n t s w h e n d u e t o t h e
T I F I A L e n d e r i n a c c o r d a n c e w i t h t h i s S e c t i o n 2 0 . 0 5 . T h e T r u s t e e s h a l l k e e p p r o p e r r e c o r d s o f
a l l p a y m e n t s m a d e b y t h e C o m m i s s i o n a n d t h e T r u s t e e w i t h r e s p e c t t o t h e 2 0 1 3 T I F I A B o n d , a n d
o f a l l e x c h a n g e s a n d r e p l a c e m e n t s o f 2 0 1 3 T I F I A B o n d , a s p r o v i d e d i n t h e I n d e n t u r e .
S e c t i o n 2 0 . 0 6 . C o n d i t i o n s T o D e l i v e r y o f 2 0 1 3 B o n d s . T h e 2 0 1 3 T I F I A
B o n d s h a l l b e e x e c u t e d a n d d e l i v e r e d a s a u t h o r i z e d b y t h i s 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
t h e I n d e n t u r e , i n c l u d i n g A r t i c l e s I I a n d I I I t h e r e o f , u p o n 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 2 0 1 3
T I F I A L o a n A g r e e m e n t .
S e c t i o n 2 0 . 0 7 . D i s p o s i t i o n o f P r o c e e d s o f 2 0 1 3 B o n 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 3 T I F I A B o n d s h a l l b e r e c e i v e d b y t h e T r u s t e e a n d t r a n s f e r r e d a n d d e p o s i t e d
b y t h e T r u s t e e a s f o l l o w s :
( i ) [ D e p o s i t $ _ _ _ _ _ i n t o t h e 2 0 1 3 B o n d s C o s t s o f I s s u a n c e A c c o u n t ; a n d ]
O H S U S A : 7 5 3 3 8 7 9 4 5 . 2 - 5 -
2 3 2
(ii) Deposit all remaining proceeds from the sale of the 2013 TIFIA Bond from time •
to time into the Subordinate Obligations Account of the Project Fund.
ARTICLE XXI
TRANSFERS; SUBORDINATE OBLIGATIONS RESERVE FUND
Section 21.01. Transfers to the Debt Service Fund. Transfers to the
Subordinate Obligations Payment Fund with respect to the 2013 TIFIA Bond shall commence on
the sixth Monthly Funding Date prior to the first Interest Payment Date after the Issue Date. On
each Interest Payment Date and each Principal Payment Date, the Trustee shall transfer to the
Owner of the 2013 TIFIA Bond money on deposit in the Subordinate Obligations Payment Fund
to pay principal of and interest on the 2013 TIFIA Bond due and payable on such Interest
Payment Date or Principal Payment Date. No later than the Business Day following each
Principal Payment Date, if there is at least $1,000,000 on deposit in the TIFIA Prepayment
Account, the Trustee shall transfer to the Owner of the 2013 TIFIA Bond the highest integral
multiple of $1,000,000 then on deposit in the TIFIA Prepayment Account to prepay principal of
the 2013 TIFIA Bond.
Section 21.02. Subordinate Obligations Reserve Fund. On or before
[FUNDING DATE], the Commission shall transfer to the Trustee from time to time for deposit
to the Subordinate Obligations Reserve Fund funds in the aggregate amount of $20,000,000.
The Commission covenants that it will use ROW Revenues or Sales Tax Revenues to make such
transfer or transfers on or before [FUNDING DATE].
ARTICLE XXII
OTHER PROVISIONS
Section 22.01. Tax Status. It is the intention of the Commission that the 2013
TIFIA Bond not be an obligation described in section 1 03 of the Code interest on which is
excludable from the gross income of the holders and in that regard the Commission agrees not to
file a form 8038-G, or any comparable information return relating to tax-exempt obligations,
with the Internal Revenue Service.
Section 22.02. No Amendment without Consent of the TIFIA Lender. So
long as the TIFIA Lender is the Owner of the 2013 TIFIA Bond, the Commission shall not enter
into any Supplemental Indenture (other than the First Supplemental Indenture and this Second
Supplemental Indenture) pursuant to the Indenture without the prior written consent of the TIFIA
Lender as set forth in the Indenture.
ARTICLE XXIII
MISCELLANEOUS
Section 23.01. Severability. If any covenant, agreement or provision, or any
portion thereof, contained in this Second Supplemental Indenture, or the application thereof to
any person or circumstance, is held to be unconstitutional, invalid or unenforceable, the
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" r e m a i n d e r o f t h i s 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 t h e a p p l i c a t i o n o f a n y s u c h c o v e n a n t ,
a g r e e m e n t o r p r o v i s i o n , o r p o r t i o n t h e r e o f , t o o t h e r p e r s o n s o r c i r c u m s t a n c e s , s h a l l b e d e e m e d
s e v e r a b l e a n d s h a l l n o t b e a f f e c t e d t h e r e b y , a n d t h i s 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 s h a l l r e m a i n
v a l i d .
S e c t i o n 2 3 . 0 2 . P a r t i e s I n t e r e s t e d H e r e i n . N o t h i n g i n t h i s 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 e x p r e s s e d o r i m p l i e d i s i n t e n d e d o r s h a l l b e c o n s t r u e d t o c o n f e r u p o n , o r
t o g i v e t o , a n y p e r s o n o r e n t i t y , o t h e r t h a n t h e C o m m i s s i o n , t h e T r u s t e e , a n d t h e O w n e r s o f t h e
2 0 1 3 T I F I A B o n d s , a n y r i g h t , r e m e d y o r c l a i m u n d e r o r b y r e a s o n o f t h i s 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 o r a n y c o v e n a n t , c o n d i t i o n o r s t i p u l a t i o n h e r e o f ; a n d a l l t h e c o v e n a n t s , s t i p u l a t i o n s ,
p r o m i s e s a n d a g r e e m e n t s i n t h i s 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 c o n t a i n e d b y a n d o n b e h a l f o f
t h e C o m m i s s i o n s h a l l b e f o r t h e s o l e a n d e x c l u s i v e b e n e f i t o f t h e C o m m i s s i o n , t h e T r u s t e e a n d
t h e O w n e r s .
S e c t i o n 2 3 . 0 3 . H e a d i n g s N o t B i n d i n g . T h e h e a d i n g s i n t h i s 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 r e f o r c o n v e n i e n c e o n l y a n d i n n o w a y d e f i n e , l i m i t o r d e s c r i b e t h e
s c o p e o r i n t e n t o f a n y p r o v i s i o n s o r s e c t i o n s o f t h i s 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 .
S e c t i o n 2 3 . 0 4 . 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 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 M a s t e r 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 2 3 . 0 5 . E f f e c t i v e D a t e o f 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 i s
" 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 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 2 3 . 0 6 . 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 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 m a y b e e x e c u t e d i n s e v e r a l c o u n t e r p a r t s , e a c h o f w h i c h s h a l l b e d e e m e d a n o r i g i n a l ,
a n d a l l o f w h i c h s h a l l c o n s t i t u t e b u t o n e a n d t h e s a m e i n s t r u m e n t .
O H S U S A : 7 5 3 3 8 7 9 4 5 . 2 - 7 -
2 3 4
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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 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 b y t h e i r o f f i c e r s t h e r e u n t o d u l y a u t h o r i z e d a s o f t h e d a y a n d y e a r f i r s t
w r i t t e n a b o v e .
C o u n t e r s i g n e d :
C l e r k o f t h e B o a r d
O H S U S A : 7 5 3 3 8 7 9 4 5 . 2
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
T H E B A N K O F N E W Y O R K M E L L O N T R U S T
C O M P A N Y , N . A . , a s T r u s t e e
B y : ~ - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
A u t h o r i z e d O f f i c e r
2 3 5
OHSUSA:753387945.2
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TIFA LOAN AGREEMENT
A-I
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E X H I B I T B
F O R M O F T R A N S F E R E E ' S L E T T E R
T h e B a n k o f N e w Y o r k M e l l o n
T r u s t C o m p a n y , N . A .
R 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 o l l B r i d g e R e v e n u e B o n d s , 2 0 1 3 T I F I A
L a d i e s a n d G e n t l e m e n :
T h e u n d e r s i g n e d r e p r e s e n t a t i v e s o f ( t h e " S e l l e r " ) a n d ( t h e " P u r c h a s e r " ) , d o h e r e b y c e r t i f y ,
r e p r e s e n t a n d w a r r a n t f o r t h e b e n e f i t o f T h e B a n k o f N e w Y o r k M e l l o n T r u s t C o m p a n y , N . A . a s
t r u s t e e ( t h e " T r u s t e e " ) , t h a t t h e P u r c h a s e r i s a p a r t y t o t h e 2 0 1 3 T I F I A L o a n A g r e e m e n t h a v i n g
a l l r i g h t s a n d o b l i g a t i o n s o f t h e " L e n d e r " t h e r e u n d e r . T h e P u r c h a s e r u n d e r s t a n d s t h a t i n
c o n n e c t i o n w i t h a n y f u t u r e t r a n s f e r o r e x c h a n g e o f t h e 2 0 1 3 T I F I A B o n d b y t h e P u r c h a s e r , t h e r e
m u s t b e d e l i v e r e d t o t h e T r u s t e e a l e t t e r o f t h e t r a n s f e r e e i n s u b s t a n t i a l l y t h e f o r m o f E x h i b i t B t o
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 e r m s n o t d e f i n e d h e r e i n s h a l l h a v e t h e m e a n i n g s g i v e n t o t h e m u n d e r 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 ( " 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 J u n e 1 , 2 0 1 3 , 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 T h e B a n k o f N e w Y o r k M e l l o n T r u s t
C o m p a n y , N . A . , a s T r u s t e e .
I N W I T N E S S W H E R E O F , t h e u n d e r s i g n e d r e p r e s e n t a t i v e s h a v e h e r e u n t o e x e c u t e d t h i s l e t t e r a s
o f t h e d a y o f , 2 0 1 3 .
O H S U S A : 7 5 3 3 8 7 9 4 5 . 2
[ S E L L E R ]
B y : _ _ _ _ _ _ _ _ _ _ _ _ _ _
N a m e : . _ _ _ _ _ _ _ _ _ _ _ _ _ _
T i t l e : _ _ _ _ _ _ _ _ _ _ _ _ _ _
[ P U R C H A S E R ]
B y : _ _ _ _ _ _ _ _ _ _ _ _ _ _
N a m e : - - - - - - - - - - - - - - - T i t l e : _ _ _ _ _ _ _ _ _ _ _ _ _ _
[ M U S T B E S I G N E D B Y A C T U A L P U R C H A S E R
M A Y N O T B E S I G N E D B Y N O M I N E E O R A G E N T ]
B - 1
2 3 7
No. R-
EXHIBIT C
FORM OF 2013 TIFIA BOND
UNITED STATES OF AMERICA
STATE OF CALIFORNIA
RIVERSIDE COUNTY TRANSPORTATION COMMISSION,
TOLL REVENUE BOND, 2013 TIFIA SERIES
(TIFIA-No. __ __,
MAXIMUM PRINCIPAL
AMOUNT
EFFECTIVE
DATE DUE
Issuance Date: , 2013
Registered Owner: UNITED STATES DEPARTMENT OF TRANSPORTATION
[BOND FORM TO COME]
•
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 all as of the Issue Date set forth above.
(Seal)
Countersigned:
By: _____________ _
Chief Financial Officer
OHSUSA:753387945.2
RIVERSIDE COUNTY TRANSPORTATION
COMMISSION
By: _____________ _
Chair of the Board of Commissioners
B-1
238
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[ F O R M O F C E R T I F I C A T E O F A U T H E N T I C A T I O N ]
I t i s h e r e b y c e r t i f i e d t h a t t h i s B o n d h a s b e e n i s s u e d u n d e r 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 i n t h i s B o n d .
D a t e d o f A u t h e n t i c a t i o n :
O H S U S A : 7 5 3 3 8 7 9 4 5 . 2
- - - - - - -
B - 2
T H E B A N K O F N E W Y O R K M E L L O N
T R U S T C O M P A N Y , N . A . , a s T r u s t e e
B y : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
A u t h o r i z e d O f f i c e r
2 3 9
[FORM OF ASSIGNMENT]
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
(Please Print or Type Name and Address of Assignee)
PLEASE INSERT SOCIAL SECURITY OR OTHER
TAX IDENTIFICATION NUMBER OF ASSIGNEE
the within bond and all rights thereunder, and hereby irrevocably constitutes and appoints
to transfer the within Bond on the books kept for registration thereof with full power of
substitution in the premises.
Dated:
Signature:
SIGNATURE GUARANTEED:
(Signature of Assignor)
Notice: The signature on this assignment must
correspond with the name of the Registered Owner as it
appears upon the face of the within Bond in every
particular without alteration or enlargement or any
change whatsoever.
Notice: Signature must be guaranteed by an
eligible guarantor firm.
B-3
OHSUSA:753387945.2
240
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A P P E N D I X O N E
M a t u r i t y D a t e : T h e e a r l i e r o f 1 , 2 0 _ o r 3 5 y e a r s a f t e r
S u b s t a n t i a l C o m p l e t i o n o f t h e R i v e r s i d 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
M a x i m u m P r i n c i p a l S u m : $ - - - - -
B o r r o w 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
P r o j e c t : R i v e r s i d 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
L e n d e r : T h e U n i t e d S t a t e 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 , a c t i n g b y a n d t h r o u g h t h e F e d e r a l
H i g h w a y A d m i n i s t r a t o r
L o a n N u m b e r : - - - -
D I S B U R S E M E N T S , C A P I T A L I Z E D I N T E R E S T A N D P A Y M E N T S O F P R I N C I P A L 1
A m o u n t o f
D a t e
A m o u n t o f
D i s b u r s e m e n t
I n t e r e s t
C a p i t a l i z e d
A m o u n t o f U n p a i d
P r i n c i p a l P a i d P r i n c i p a l S u m
N o t a t i o n
M a d e B y
1 T h i s G r i d m a y b e e x t e n d e d i f t h e n u m b e r o f D i s b u r s e m e n t s , p a y m e n t a n d e x t e n s i o n s s o r e q u i r e s .
B - 4
O H S U S A : 7 5 3 3 8 7 9 4 5 . 2
2 4 1
APPENDIX TWO
LOAN AMORTIZATION SCHEDULE
Initial Principal
Amount: Closing Date
Date
Beginning
Balance
Loan
Disbursements Repayment
Semiannual P&l
Semiannual Compounding
Interest calculated based upon actual days over actual days
OHSUSA:753387945.2
B-5
Interest
Paid
242
Interest
Accrued
•
Interest Rate
Repayment
of Accrued
Interest
Principal Ending
Repayment Balance
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A I T A C H M E N T 6
D R A F T 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
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 J u n e 1 , 2 0 1 3
R e l a t i n g t o
$ _ _ _ _ _
0 3 / 2 6 / 1 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
T o l l R e v e n u e B o n d s , 2 0 1 3 S e r i e s A
$ _ _ _ _ _
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 o l l R e v e n u e B o n d s , 2 0 1 3 S e r i e s B
7 8 9 0 2 8 8 2 . 1
2 4 3
" 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 J u n e 1 , 2 0 1 3 , 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 T o l l R e v e n u e B o n d s , 2 0 1 3 S e r i e s A a n d 2 0 1 3 S e r i e s B ( t h e " S e r i e s
2 0 1 3 B o n d s " ) p u r s u a n t t o a M a s t e r I n d e n t u r e , d a t e d a s o f J u n e I , 2 0 1 3 , 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 B a n k o f N e w Y o r k M e l l o n T r u s t C o m p a n y , N . A . , 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 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 1 3 , 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 S e r i e s 2 0 1 3 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 S e r i e s 2 0 1 3 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 . P u r p o s e o f t h e 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 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 H o l d e r s a n d B e n e f i c i a l O w n e r s o f t h e S e r i e s 2 0 1 3 B o n d s a n d i n o r d e r t o a s s i s t t h e
P a r t i c i p a t i n g U n d e r w r i t e r s i n c o m p l y i n g w i t h S E C R u l e 1 5 c 2 - 1 2 .
S e c t i o n 2 . 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 3 a n d 4 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 .
7 8 9 0 2 8 8 2 . 1
1
2 4 4
"EMMA" shall mean the Municipal Securities Rulemaking Board's Electronic
Municipal Market Access System for Municipal Securities disclosures, maintained on the •
internet at http://emma.msrb.org.
"Fiscal Year" shall mean the period beginning on July 1 of each year and ending on the
next succeeding June 30, or any twelve-month or fifty-two week period hereafter selected by the
Commission, with notice of such selection or change in fiscal year to be provided as set forth
herein.
"Listed Events" means any of the events listed in Section 5 hereof.
"MSRB" means the Municipal Securities Rulemaking Board established pursuant to
Section 15B(b )( 1) of the Securities Exchange Act of 1934 or any other entity designated or
authorized by the SEC to receive reports pursuant to the Rule. Until otherwise designated by the
MSRB or the SEC, filings with the MSRB are to be made through the EMMA website of the
MSRB, currently located at http://emma.msrb.org.
"Official Statement" means the Official Statement, dated June_, 2013, relating to the
Series 2013 Bonds.
"Participating Underwriters" means the underwriters of the Series 2013 Bonds
required to comply with the Rule in connec_tion with the offering of the Series 2013 Bonds.
"Repository" means, until otherwise designated by the SEC, EMMA.
"Rule" means Rule 15c2-12 adopted by the SEC under the Securities Exchange Act of
1934, as the same may be amended from time to time.
"SEC" means the Securities and Exchange Commission.
Section 3. Provision of Annual Reports.
(a) So long as any Series 2013 Bonds remain outstanding pursuant to the
Indenture, 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
2012-13 Fiscal Year, provide to the MSRB, through EMMA, an Annual Report which is
consistent with the requirements of Section 4 of this Disclosure Agreement. The Annual
Report must be submitted in electronic format, accompanied by such identifying
information as provided by the MSRB. 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 5( e) hereof.
78902882.1 2
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( b ) N o t l a t e r t h a n t w o ( 2 ) B u s i n e s s D a y s p r i o r t o t h e d a t e s p e c i f i e d i n
s u b s e c t i o n ( a ) f o r p r o v i d i n g t h e A n n u a l R e p o r t t o e a c h R e p o s i t o r y , 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 h e A n n u a l R e p o r t t o t h e D i s s e m i n a t i o n A g e n t . I f b y s u c h d a t e , t h e
D i s s e m i n a t i o n A g e n t h a s n o t r e c e i v e d a c o p y o f t h e A n n u a l R e p o r t f r o m t h e
C o m m i s s i o n , t h e D i s s e m i n a t i o n A g e n t s h a l l c o n t a c t t h e C o m m i s s i o n t o d e t e r m i n e i f t h e
C o m m i s s i o n i s i n c o m p l i a n c e w i t h t h e f i r s t s e n t e n c e o f s u b s e c t i o n ( a ) .
( c ) I f t h e D i s s e m i n a t i o n A g e n t i s u n a b l e t o v e r i f y t h a t a n A n n u a l R e p o r t o f
t h e C o m m i s s i o n h a s b e e n p r o v i d e d t o e a c h R e p o s i t o r y b y t h e d a t e r e q u i r e d i n s u b s e c t i o n
( a ) , t h e D i s s e m i n a t i o n A g e n t s h a l l s e n d a n o t i c e t o e a c h R e p o s i t o r y i n s u b s t a n t i a l l y 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 .
( d ) T h e D i s s e m i n a t i o n A g e n t s h a l l :
( i ) d e t e r m i n e t h e e l e c t r o n i c f i l i n g a d d r e s s o f , a n d t h e n - c u r r e n t
p r o c e d u r e s f o r s u b m i t t i n g A n n u a l R e p o r t s t o , t h e M S R B e a c h y e a r p r i o r t o
t h e d a t e f o r p r o v i d i n g t h e A n n u a l R e p o r t ; a n d
( i i ) t o t h e e x t e n t k n o w n t o t h e D i s s e m i n a t i o n A g e n t f i l e a
r e p o r t w i t h t h e C o m m i s s i o n a n d ( i f t h e D i s s e m i n a t i o n A g e n t i s n o t t h e
T r u s t e e ) t h e T r u s t e e c e r t i f y i n g t h a t t h e A n n u a l R e p o r t h a s b e e n p r o v i d e d
p u r s u a n t t o t h i s D i s c l o s u r e A g r e e m e n t , a n d s t a t i n g t h e d a t e i t w a s
p r o v i d e d .
S e c t i o n 4 . 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 3 ( a ) ,
t h e A n n u a l R e p o r t s h a l l c o n t a i n u n a u d i t e d f i n a n c i a l s t a t e m e n t s i n a f o r m a t s i m i l a r t o t h e
f i n a n c i a l s t a t e m e n t s c o n t a i n e d i n t h e f i n a l O f f i c i a l S t a t e m e n t , 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 S e r i e s 2 0 1 3 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 O C O M E ] .
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
7 8 9 0 2 8 8 2 . 1 3
2 4 6
available from the MSRB. The Commission shall clearly identify each such other document so
included by reference.
The contents, presentation and format of the Annual Reports may be modified from time
to time as determined in the judgment of the Commission to conform to changes in accounting or
disclosure principles or practices and legal requirements followed by or applicable to the
Commission or to reflect changes in the business, structure, operations, legal form of the
Commission or any mergers, consolidations, acquisitions or dispositions made by or affecting the
Commission; provided that any such modifications shall comply with the requirements of the
Rule.
Section 5. Reporting of Significant Events. (a) Pursuant to the provisions of this
Section 5, the Commission shall give, or cause to be given, notice of the occurrence of any of the
following events with respect to the Series 2013 Bonds, in a timely manner not more than ten
( 1 0) Business Days after the event:
( 1) principal and interest payment delinquencies;
(2) defeasances;
(3) tender offers;
( 4) rating changes;
(5) adverse tax opinions or the issuance by the Internal Revenue
Service of proposed or final determinations of taxability or Notices
ofProposed Issue (IRS Form 5701-TEB);
( 6) unscheduled draws on the debt service reserves reflecting financial
difficulties;
(7) unscheduled draws on credit enhancements reflecting financial
difficulties;
(8) substitution of credit or liquidity providers or their failure to
perform; or
(9) bankruptcy, insolvency, receivership or similar proceedings.
For these purposes, any event described in the immediately preceding paragraph (9) is
considered to occur when any of the following occur: the appointment of a receiver, fiscal agent,
or similar officer for the Commission in a proceeding under the United States Bankruptcy Code
or in any other proceeding under state or federal law in which a court or governmental authority
has assumed jurisdiction over substantially all of the assets or business of the Commission, or if
such jurisdiction has been assumed by leaving the existing governing body and officials or
officers in possession but subject to the supervision and orders of a court or governmental
authority, or the entry of an order confirming a plan of reorganization, arrangement, or
78902882.1 4
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l i q u i d a t i o n b y a c o u r t o r g o v e r n m e n t a l a u t h o r i t y h a v i n g s u p e r v i S i o n o r j u r i s d i c t i o n o v e r
s u b s t a n t i a l l y a l l o f t h e a s s e t s o r b u s i n e s s o f t h e C o m m i s s i o n .
( b ) P u r s u a n t t o t h e p r o v i s i o n s o f t h i s S e c t i o n 5 , t h e C o m m i s s i o n s h a l l g i v e , o r
c a u s e t o b e g i v e n , n o t i c e o f t h e o c c u r r e n c e o f a n y o f t h e f o l l o w i n g e v e n t s w i t h r e s p e c t t o
t h e S e r i e s 2 0 1 3 B o n d s , i f m a t e r i a l :
( 1 ) t h e c o n s u m m a t i o n o f a m e r g e r , c o n s o l i d a t i o n o r a c q m s 1 t 1 0 n
i n v o l v i n g t h e C o m m i s s i o n o r t h e s a l e o f a l l o r s u b s t a n t i a l l y a l l o f
t h e a s s e t s o f t h e C o m m i s s i o n , o t h e r t h a n i n t h e o r d i n a r y c o u r s e o f
b u s i n e s s , t h e e n t r y i n t o a d e f i n i t i v e a g r e e m e n t t o u n d e r t a k e s u c h a n
a c t i o n o r t h e t e r m i n a t i o n o f a d e f i n i t i v e a g r e e m e n t r e l a t i n g t o a n y
s u c h a c t i o n s ;
( 2 ) a p p o i n t m e n t o f a s u c c e s s o r o r a d d i t i o n a l T r u s t e e o r t h e c h a n g e o f
t h e n a m e o f a T r u s t e e ;
( 3 ) 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 ;
( 4 ) m o d i f i c a t i o n s t o t h e r i g h t s o f H o l d e r s ;
( 5 ) b o n d c a l l s ;
( 6 ) r e l e a s e , s u b s t i t u t i o n o r s a l e o f p r o p e r t y s e c u r i n g r e p a y m e n t o f t h e
S e r i e s 2 0 1 3 B o n d s ; o r
( 7 ) i n a d d i t i o n t o t h e a d v e r s e t a x o p m w n s o r d e t e r m i n a t i o n s o f
t a x a b i l i t y d e s c r i b e d i n S e c t i o n 5 ( a ) ( 5 ) a b o v e , a n y o t h e r n o t i c e s o r
d e t e r m i n a t i o n s w i t h r e s p e c t t o t h e t a x s t a t u s o f t h e S e r i e s 2 0 1 3
B o n d s .
( c ) W h e n e v e r t h e C o m m i s s i o n o b t a i n s k n o w l e d g e o f t h e o c c u r r e n c e o f a
L i s t e d E v e n t , d e s c r i b e d i n s u b s e c t i o n ( b ) o f t h i s S e c t i o n 5 , t h e C o m m i s s i o n s h a l l a s s o o n
a s p o s s i b l e d e t e r m i n e i f s u c h e v e n t w o u l d b e m a t e r i a l u n d e r a p p l i c a b l e f e d e r a l s e c u r i t i e s
l a w .
( d ) I f 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 k n o w l e d g e o f t h e o c c u r r e n c e o f a
L i s t e d E v e n t d e s c r i b e d i n s u b s e c t i o n ( b ) o f t h i s S e c t i o n 5 w o u l d b e m a t e r i a l u n d e r
a p p l i c a b l e f e d e r a l s e c u r i t i e s l a w , 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
D i s s e m i n a t i o n A g e n t i n w r i t i n g a n d i n s t r u c t t h e D i s s e m i n a t i o n A g e n t t o r e p o r t t h e
o c c u r r e n c e t o t h e M S R B i n a t i m e l y m a n n e r n o t m o r e t h a n t e n ( 1 0 ) B u s i n e s s D a y s a f t e r
t h e e v e n t .
( e ) I f t h e D i s s e m i n a t i o n A g e n t h a s b e e n i n s t r u c t e d b y t h e C o m m i s s i o n t o
r e p o r t t h e o c c u r r e n c e o f a L i s t e d E v e n t , t h e D i s s e m i n a t i o n A g e n t s h a l l f i l e a n o t i c e o f
s u c h o c c u r r e n c e w i t h t h e M S R B .
7 8 9 0 2 8 8 2 . 1 5
2 4 8
Section 6. Filings with the MSRB. All information, operating data, financial
statements, notices and other documents provided to the MSRB 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 7. 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 Series 2013 Bonds. If such termination occurs prior to the final maturity of the Series
2013 Bonds, the Commission shall give notice of such termination in the same mam1er as for a
Listed Event under Section 5.
Section 8. 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 9. 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 10. 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 lL 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 shall, at the
written request of any Participating Underwriter or of the Holders of at least twenty-five percent
(25%) of the aggregate principal amount of the Series 2013 Bonds then Outstanding (but only to
the extent funds in an amount satisfactory to the Trustee have been provided to it or it has been
otherwise indemnified to its satisfaction from any cost, liability, expense or additional charges
and fees of the Trustee whatsoever, including, without limitation, reasonable fees and expenses
of its attorneys), or any Holder or beneficial owner of the Series 2013 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 of Default under the Indenture, and the sole remedy
under this Disclosure Agreement in the event of any failure of the Commission . or the •
78902882.1 6
249
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D i s s e m i n a t i o n A g e n t t o c o m p l y w i t h t h i s D i s c l o s u r e A g r e e m e n t s h a l l b e a n a c t i o n t o c o m p e l
p e r f o r m a n c e .
S e c t i o n 1 2 . D u t i e s , I m m u n i t i e s a n d L i a b i l i t i e s o f D i s s e m i n a t i o n A g e n t . T h e
D i s s e m i n a t i o n A g e n t s h a l l n o t b e r e s p o n s i b l e f o r t h e f o r m o r c o n t e n t o f a n y n o t i c e o f L i s t e d
E v e n t . T h e D i s s e m i n a t i o n A g e n t s h a l l r e c e i v e r e a s o n a b l e c o m p e n s a t i o n f o r i t s s e r v i c e s p r o v i d e d
u n d e r t h i s D i s c l o s u r e A g r e e m e n t . T h e D i s s e m i n a t i o n A g e n t s h a l l h a v e o n l y s u c h d u t i e s a s a r e
s p e c i f i c a l l y s e t f o r t h i n t h i s D i s c l o s u r e A g r e e m e n t , a n d t h e C o m m i s s i o n a g r e e s t o i n d e m n i f y a n d
s a v e t h e D i s s e m i n a t i o n A g e n t , i t s o f f i c e r s , d i r e c t o r s , e m p l o y e e s a n d a g e n t s , h a r m l e s s a g a i n s t a n y
l o s s , e x p e n s e a n d l i a b i l i t i e s w h i c h i t m a y i n c u r a r i s i n g o u t o f o r i n t h e e x e r c i s e o r p e r f o r m a n c e o f
i t s p o w e r s a n d d u t i e s h e r e u n d e r , i n c l u d i n g t h e c o s t s a n d e x p e n s e s ( i n c l u d i n g a t t o r n e y s f e e s ) o f
d e f e n d i n g a g a i n s t a n y c l a i m o f l i a b i l i t y , b u t e x c l u d i n g l i a b i l i t i e s d u e t o t h e D i s s e m i n a t i o n
A g e n t ' s n e g l i g e n c e o r w i l l f u l m i s c o n d u c t . T h e o b l i g a t i o n s o f t h e C o m m i s s i o n u n d e r t h i s S e c t i o n
s h a l l s u r v i v e r e s i g n a t i o n o r r e m o v a l o f t h e D i s s e m i n a t i o n A g e n t a n d p a y m e n t o f t h e S e r i e s 2 0 1 3
B o n d s .
S e c t i o n 1 3 . N o t i c e s . A n y n o t i c e s o r c o m m u n i c a t i o n s t o o r a m o n g a n y o f t h e p a r t i e s t o
t h e D i s c l o s u r e A g r e e m e n t o r t h e T r u s t e e m a y b e g i v e n a s f o l l o w s :
T o t h e C o m m i s s i o n :
T o t h e D i s s e m i n a t i o n A g e n t :
T o t h e T r u s t 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 M a i l :
C o m m i s s i o n
4 0 8 0 L e m o n S t r e e t , 3 r d F l o o r 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 1 R i v e r s i d e , C a l i f o r n i a 9 2 5 0 2
T e l : ( 9 5 1 ) 7 8 7 - 7 9 2 6
F a x : ( 9 5 1 ) 7 8 7 - 7 9 2 0
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 .
3 9 0 N o r t h O r a n g e A v e n u e , S u i t e 1 7 5 0
O r l a n d o , F l o r i d a 3 2 8 0 1
T e l : ( 4 0 7 ) 5 1 5 - 1 1 0 0
F a x : ( 4 0 7 ) 5 1 5 - 6 5 1 3
T h e B a n k o f N e w Y o r k M e l l o n T r u s t C o m p a n y , N . A .
4 0 0 S o u t h H o p e S t r e e t , S u i t e 4 0 0
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 : ( 2 1 3 ) 6 3 0 - 6 2 4 0
F a x : ( 2 1 3 ) 6 3 0 - 6 2 1 5
A n y p e r s o n m a y , b y w r i t t e n n o t i c e t o t h e o t h e r p e r s o n s l i s t e d a b o v e , d e s i g n a t e a d i f f e r e n t
a d d r e s s o r t e l e p h o n e n u m b e r ( s ) t o w h i c h s u b s e q u e n t n o t i c e s o r c o m m u n i c a t i o n s s h o u l d b e s e n t .
A n y n o t i c e o r c o m m u n i c a t i o n m a y a l s o b e s e n t b y e l e c t r o n i c m a i l , r e c e i p t o f w h i c h s h a l l b e
c o n f i r m e d .
S e c t i o n 1 4 . B e n e f i c i a r i e s . T h i s D i s c l o s u r e A g r e e m e n t s h a l l i n u r e s o l e l y t o t h e b e n e f i t
o f t h e C o m m i s s i o n , t h e D i s s e m i n a t i o n A g e n t , t h e P a r t i c i p a t i n g U n d e r w r i t e r s a n d h o l d e r s a n d
7 8 9 0 2 8 8 2 . 1 7
2 5 0
beneficial owners from time to time of the Series 2013 Bonds, and shall create no rights in any •
other person or entity.
Section 15. Counterparts. This Disclosure Agreement may be executed in several
counterparts, each of which shall be an original and all of which shall constitute but one and the
same instrument.
IN WITNESS WHEREOF, the parties hereto have executed this Disclosure Agreement
as of the date first above written.
78902882.1
RIVERSIDE COUNTY TRANSPORTATION
COMMISSION
By: ______________________________ __
Theresia Trevino
Chief Financial Officer
DIGITAL ASSURANCE CERTIFICATION, L.L.C.,
as Dissemination Agent
By: ______________________________ __
8
251
Authorized Representative •
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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 l 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
T o l l R e v e n u e B o n d s , 2 0 1 3 S e r i e s A ; 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
T o l l R e v e n u e B o n d s , 2 0 1 3 S e r i e s B
D a t e o f I s s u a n c e : J u n e _ , 2 0 1 3
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 J u n e 1 , 2 0 1 3 , b e t w e e n t h e C m h 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
7 8 9 0 2 8 8 2 . 1
9
2 5 2
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A T I A C H M E N T 7
N i x o n P e a b o d y D r a f t - 4 / 1 0 / 1 3
U N I T E D S T A T E 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
T I F I A L O A N A G R E E M E N T
F o r U p t o [ $ 4 5 1 , 0 0 0 , 0 0 0 ]
W i t h
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
1 4 3 5 2 8 7 4 . 7
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 I F I A - 2 0 1 2 - 1 0 0 6 A )
D a t e d a s o f J u n e _ , 2 0 1 3
2 5 3
Table of Contents
Page
Definitions ............................................................................................................... 1.
Interpretation ......................................................................................................... 25 • SECTION I.
SECTION 2.
SECTION 3. TIFIA Loan Amount. ............................................................................................ 25
SECTION 4. Disbursement Conditions ...................................................................................... 26
SECTION 5. Term ...................................................................................................................... 27
SECTION 6. Interest Rate .......................................................................................................... 27
SECTION 7. Outstanding TIFIA Loan Balance ......................................................................... 27
SECTION 8. Security and Priority; Flow of Funds .................................................................... 28
SECTION 9. Payment of Principal and Interest ......................................................................... 32
SECTION 10. Prepayment. .......................................................................................................... 35
SECTION 11. Compliance with Laws ........................................................................................ 36
SECTION 12. Conditions Precedent: ........................................................................................... 36
SECTION 13. Representations and Warranties of Borrower ..................................................... 38
SECTION 14. Representations, Warranties, and Covenants ofTIFIA Lender .......................... 40
SECTION 15. Borrower Covenants ........................................................................................... 41
SECTION 16. Indemnification ..................................................................................................... 50
• SECTION 17 Sale ofTIFIA Loan ............................................................................................... 50
•
SECTION 18. Events ofDefault and Remedies ........................................................................... 5.1
SECTION 19. Accounting and Audit Procedures; Inspections; Reports and Records ................ 54
SECTION 20. Financial Plan, Statements, and Reports ............................................................... 55
SECTION 21. Project Oversight and Monitoring ........................................................................ 58
SECTION 22. No Personal Recourse ........................................................................................... 60
SECTION 23. No Third Party Rights ........................................................................................... 60
SECTION 24. Borrower's Authorized Representative ................................................................. 60
SECTION 25. TIFIA Lender's Authorized Representative ......................................................... 60
SECTION 26. Servicer. ................................................................................................................ 61
SECTION 27. Fees and Expenses ................................................................................................ 61
SECTION 28. Amendments and Waivers .................................................................................... 62
SECTION 29. Governing Law ..................................................................................................... 62
SECTION 30. Severability·······························-··········································································· 62
SECTION 31. Successors and Assigns ......................................................................................... 62
SECTION 32. Remedies Not Exclusive ....................................................................................... 62
SECTION 33. Delay or Omission Not Waive .............................................................................. 62
14352874.7 I
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Table of Contents (continued)
Page
SECTION 34. Counterparts .......................................................................................................... 63 •
SECTION 35. Notices; Payment Instructions .............................................................................. 63
SECTION 36. Effectiveness ......................................................................................................... 64
SECTION 37. Termination ........................................................................................................... 64
Schedules
SCHEDULE I-Project Budget
SCHEDULE II-TIFIA Eligible Project Costs
SCHEDULE III -Project Construction Schedule
EXHIBIT A -Form ofTIFIA Bond
EXHIBIT B -Anticipated TIFIA Loan Disbursement Schedule
EXHIBIT C -Non-Debannent Certification
EXHIBIT D -Requisition Procedures
EXHIBIT E -Compliance with Laws
EXHIBIT F -High Profile Project Oversight Agreement for SR-91 Corridor Improvement •
Project
EXHIBIT G -TIFIA Debt Service Schedule
EXHIBIT H -TIFIA Debt Service Structure
EXHIBIT I -Forms of Opinions of Counsel to Borrower
14352874.7
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T I F I A L O A N A G R E E M E N T
T H I S T I F I A L O A N A G R E E M E N T ( t h i s " A g r e e m e n t " ) , d a t e d a s o f J u n e _ , 2 0 1 3 , 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 c o u n t y
t r a n s p o r t a t i o n c o m m i s s i o n d u l y 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 , w i t h a n
a d d r e s s o f 4 0 8 0 L e m o n S t r e e t , 3 r d F l o o r , R i v e r s i d e , C A 9 2 5 0 1 ( t h e " B o r r o w e r " ) , a n d U N I T E D
S T A T E 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 , a n a g e n c y o f t h e U n i t e d S t a t e s o f
A m e r i c a , a c t i n g b y a n d t h r o u g h t h e F e d e r a l H i g h w a y A d m i n i s t r a t o r ( t o g e t h e r w i t h i t s s u c c e s s o r s
a n d a s s i g n s , t h e " T I F I A L e n d e r " ) , w i t h a n a d d r e s s o f 1 2 0 0 N e w J e r s e y A v e n u e , S . E . ,
W a s h i n g t o n , D C 2 0 5 9 0 .
R E C I T A L S :
W H E R E A S , 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 h a s f o u n d t h a t a w e l l -
d e v e l o p e d s y s t e m o f t r a n s p o r t a t i o n i n f r a s t r u c t u r e i s c r i t i c a l t o t h e e c o n o m i c w e l l - b e i n g , h e a l t h
a n d w e l f a r e o f t h e p e o p l e o f t h e U n i t e d S t a t e s a n d , i n f u r t h e r a n c e t h e r e o f , h a s e n a c t e d t h e
T r a n s p o r t a t i o n I n f r a s t r u c t u r e F i n a n c e a n d I n n o v a t i o n A c t o f 1 9 9 8 ( " T I F I A " ) , � 1 5 0 1 e t s e q . o f
P u b l i c L a w 1 0 5 - 1 7 8 ( a s a m e n d e d b y t h e P u b l i c L a w 1 0 5 - 2 0 6 , P u b l i c L a w 1 0 9 - 5 9 a n d P u b l i c
L a w 1 1 2 - 1 4 1 ) ( t h e " A c t " ) , a s c o d i f i e d a s 2 3 U . S . C . � 6 0 1 , e t s e q . ;
W H E R E A S , S e c t i o n 6 0 3 o f t h e A c t a u t h o r i z e s t h e T I F I A L e n d e r t o e n t e r i n t o a g r e e m e n t s
w i t h o n e o r m o r e o b l i g o r s t o m a k e s e c u r e d l o a n s ;
W H E R E A S , t h e B o r r o w e r h a s r e q u e s t e d t h a t t h e T I F I A L e n d e r m a k e t h e T I F I A L o a n ( a s
d e f i n e d h e r e i n ) i n a p r i n c i p a l a m o u n t n o t t o e x c e e d [ $ 4 5 1 , 0 0 0 , 0 0 0 ] ( t h e " T I F I A L o a n " ) t o b e
u s e d t o p a y a p o r t i o n o f t h e E l i g i b l e P r o j e c t C o s t s ( a s d e f i n e d h e r e i n ) r e l a t e d t o t h e P r o j e c t ( a s
d e f i n e d h e r e i n ) p u r s u a n t t o a n a p p l i c a t i o n f o r T I F I A c r e d i t a s s i s t a n c e d a t e d A u g u s t 3 1 , 2 0 1 2 ( t h e
" A p p l i c a t i o n " ) ;
W H E R E A S , o n , t h e S e c r e t a r y ( a s d e f i n e d h e r e i n ) a p p r o v e d T I F I A
c r e d i t a s s i s t a n c e f o r t h e P r o j e c t i n t h e f o r m o f a d i r e c t l o a n i n a n a g g r e g a t e p r i n c i p a l a m o u n t n o t
t o e x c e e d [ $ 4 5 1 , 0 0 0 , 0 0 0 ] ;
W H E R E A S , t h e B o r r o w e r a g r e e s t o r e p a y a n y a m o u n t d u e p u r s u a n t t o t h i s A g r e e m e n t
a n d t h e T I F I A B o n d ( a s d e f i n e d h e r e i n ) i n a c c o r d a n c e w i t h t h e t e r m s a n d p r o v i s i o n s h e r e o f a n d
t h e r e o f ; a n d
W H E R E A S , t h e T I F I A L e n d e r h a s e n t e r e d i n t o t h i s A g r e e m e n t i n r e l i a n c e u p o n , a m o n g
o t h e r t h i n g s , t h e T r a f f i c a n d R e v e n u e S t u d y ( a s d e f i n e d h e r e i n ) a n d t h e B a s e C a s e P r o j e c t i o n s ( a s
d e f i n e d h e r e i n ) d e l i v e r e d b y t h e B o r r o w e r ;
N O W , T H E R E F O R E , t h e p r e m i s e s b e i n g a s s t a t e d a b o v e , a n d f o r g o o d a n d v a l u a b l e
c o n s i d e r a t i o n , t h e r e c e i p t a n d s u f f i c i e n c y o f w h i c h a r e a c k n o w l e d g e d t o b e a d e q u a t e , a n d
i n t e n d i n g t o b e l e g a l l y b o u n d h e r e b y , i t i s h e r e b y m u t u a l l y a g r e e d b y a n d b e t w e e n t h e B o r r o w e r
a n d t h e T I F I A L e n d e r 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 . 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 , c a p i t a l i z e d t e r m s u s e d
i n t h i s A g r e e m e n t s h a l l h a v e t h e m e a n i n g s s e t f o r t h b e l o w i n t h i s S e c t i o n 1 o r a s o t h e r w i s e
1 4 3 5 2 8 7 4 . 7
1
2 5 6
defined in this Agreement or in the Master Indenture. Any term used in this Agreement which is
defined by reference to any other agreement shall continue to have the meaning specified in such •
agreement on the date hereof whether or not such agreement remains in effect.
44 Accreted Value" means, with respect to any Capital Appreciation Obligations or
Convertible Capital Appreciation Obligations, the principal amount thereof plus the interest
accrued thereon, compounded at the approximate interest rate thereon on each date specified
therein. The Accreted Value at any date shall be the amounts set forth in the Accreted Value
Table as of such date, if such date is a compounding date, and if not, as of the immediately
preceding compounding date.
'
4Act" means the Transportation Infrastructure Finance and Innovation Act of 1998,
§ 1501 et seq. of Public Law 105-178 (as amended by the Public Law 105-206, Public Law 109-
59 and Public Law 112-141), as codified as 23 U.S.C. § 601, et seq.
44 Additional Financing Documents" means any documents and/or instruments
evidencing, documenting, securing or otherwise relating to any or all of the obligations relating
to the applicable Obligation, all as the same may from time to time be amended, modified,
extended, renewed and/or restated.
"Additional Project Contracts" means any contract, agreement, letter of intent,
understanding or instrument entered into by the Borrower after the execution and delivery of this
Agreement, providing for the design, construction, testing, start-up, safety, financial services,
operation or maintenance of the Project, or otherwise relating to the Project; provided, however,
that a contract or agreement shall not constitute an Additional Project Contract if it (a) is entered
into (i) in the ordinary course of business in connection with the furnishing of goods or the
performance of services or (ii) for necessary Project-related expenditures, (b) commits the
Borrower to spend, or is reasonably expected to involve expenditures by the Borrower in one
contract or a series of related contracts of, no more than $2,500,000 in the aggregate for any such
contract or series of related contracts and (c) is for a term not exceeding two years.
4'Administrator" means the Administrator of the FHW A.
''Agreement" has the meaning provided in the preamble hereto.
•
'
4Alternate Repair and Rehabilitation Fund Required Deposit" means for any
Monthly Funding Date, an amount that is greater than or less than the Scheduled Repair and
Rehabilitation Fund Required Deposit; provided, however, that (i) in any Fiscal Year prior to the
Substantial Completion Date, the Alternative Repair and Rehabilitation Fund Required Deposit
shall not exceed the Scheduled Repair and Rehabilitation Fund Required Deposit for such Fiscal
Year as shown in Exhibit_ [hereto] to the Master Indenture, without the TIFIA Lender's prior
written consent and (ii) in any Fiscal Year commencing after the Substantial Completion Date,
the Alternative Repair and Rehabilitation Fund Required Deposit shall not exceed 1 0% of the
Scheduled Repair and Rehabilitation Fund Required Deposit for such Fiscal Year as shown in
Exhibit Ll [hereto] [to the Master Indenture], without the TIFIA Lender's prior written
consent. No such consent shall be required provided that the Borrower submits a Written
Engineer's Certificate to the Trustee and the TIFIA Lender at least five (5) Business Days prior •
14352874.7
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257
"
"
"
t o t h e a p p l i c a b l e M o n t h l y F u n d i n g D a t e . [ I f t h e d e l i v e r y o f a W r i t t e n E n g i n e e r ' s C e r t i f i c a t e i s
r e q u i r e d f o r a n A l t e r n a t e R e p a i r a n d R e h a b i l i t a t i o n F u n d R e q u i r e d D e p o s i t , t h e T r u s t e e s h a l l n o t
m a k e s u c h d e p o s i t w i t h o u t t h e p r i o r w r i t t e n c o n s e n t o f t h e T I F I A L e n d e r 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 T I F I A L o a n A g r e e m e n t a n d h e r e o f . ]
" A n n u a l D e b t S e r v i c e " m e a n s t h e a m o u n t o f p a y m e n t s d u e o n t h e a p p l i c a b l e
O u t s t a n d i n g O b l i g a t i o n s f o r a n y C a l c u l a t i o n P e r i o d , a s c a l c u l a t e d b y t h e B o r r o w e r , u t i l i z i n g t h e
f o l l o w i n g a s s u m p t i o n s a b o u t p a y m e n t s o n s u c h O b l i g a t i o n s ( a n d i f m o r e t h a n o n e s u c h
a s s u m p t i o n m a y a p p l y , u s i n g t h e r e l e v a n t a s s u m p t i o n s s e l e c t e d b y t h e B o r r o w e r ) :
( a ) i n d e t e r m i n i n g t h e p r i n c i p a l a m o u n t o f a n O b l i g a t i o n d u e i n e a c h y e a r ,
p a y m e n t s h a l l b e a s s u m e d t o b e m a d e i n a c c o r d a n c e w i t h t h e a m o r t i z a t i o n s c h e d u l e e s t a b l i s h e d
f o r s u c h p r i n c i p a l , i n c l u d i n g a n y m i n i m u m s i n k i n g f u n d o r a c c o u n t p a y m e n t s ;
( b ) i f [ 2 0 ] p e r c e n t o r m o r e o f t h e p r i n c i p a l o f a S e r i e s o f O b l i g a t i o n s i s n o t
d u e u n t i l t h e f i n a l s t a t e d m a t u r i t y o f t h a t S e r i e s o f O b l i g a t i o n s , t h e p r i n c i p a l o f a n d i n t e r e s t o n
s u c h O b l i g a t i o n s m a y b e t r e a t e d a s i f s u c h p r i n c i p a l a n d i n t e r e s t w e r e d u e b a s e d u p o n a l e v e l
a m o r t i z a t i o n o f s u c h p r i n c i p a l a n d i n t e r e s t o v e r t h e t e r m o f t h a t S e r i e s o f O b l i g a t i o n s ;
( c ) i f t h e O b l i g a t i o n i s s u p p o r t e d b y a l i n e o f c r e d i t o r a l e t t e r o f c r e d i t ,
p r i n c i p a l m a y b e t r e a t e d a s i f i t w e r e d u e b a s e d u p o n t h e l e v e l a m o r t i z a t i o n o f s u c h p r i n c i p a l
o v e r t h e m a x i m u m t e r m o f r e p a y m e n t o f b o r r o w i n g s u n d e r s u c h l i n e o f c r e d i t o r l e t t e r o f c r e d i t ;
( d ) i f a n O u t s t a n d i n g O b l i g a t i o n b e a r s a V a r i a b l e I n t e r e s t R a t e , t h e i n t e r e s t
r a t e s h a l l b e a s s u m e d t o b e t h e g r e a t e r o f ( a ) t h e d a i l y a v e r a g e i n t e r e s t r a t e d u r i n g t h e 1 2 m o n t h s
e n d i n g w i t h t h e m o n t h p r e c e d i n g t h e d a t e o f c a l c u l a t i o n , o r d u r i n g s u c h s h o r t e r p e r i o d t h a t t h e
O b l i g a t i o n h a s b e e n O u t s t a n d i n g , o r ( b ) t h e r a t e o f i n t e r e s t o n t h a t O b l i g a t i o n o n t h e d a t e o f
c a l c u l a t i o n ;
( e ) i f O b l i g a t i o n s p r o p o s e d t o b e i s s u e d w i l l b e V a r i a b l e I n t e r e s t R a t e
O b l i g a t i o n s t h e i n t e r e s t 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 ,
t h e n s u c h o b l i g a t i o n s s h a l l b e a s s u m e d t o b e a r i n t e r e s t a t a n i n t e r e s t r a t e e q u a l t o t h e a v e r a g e
S I F M A I n d e x d u r i n g t h e t h r e e m o n t h s p r e c e d i n g t h e m o n t h o f c a l c u l a t i o n , o r i f S I F M A I n d e x i s
n o l o n g e r p u b l i s h e d , a t a n i n t e r e s t r a t e e q u a l t o 7 5 % o f t h e a v e r a g e O n e M o n t h U S D L I B O R
R a t e d u r i n g t h a t t h r e e m o n t h p e r i o d , o r i f t h e O n e M o n t h U S D L I B O R R a t e i s n o t a v a i l a b l e f o r
s u c h p e r i o d , a n o t h e r s i m i l a r r a t e o r i n d e x s e l e c t e d b y t h e B o r r o w e r a n d , f o r s o l o n g a s t h e T I F I A
L o a n r e m a i n s O u t s t a n d i n g , a c c e p t a b l e t o t h e T I F I A L e n d e r ;
( f ) i f O b l i g a t i o n s p r o p o s e d t o b e i s s u e d w i l l b e V a r i a b l e I n t e r e s t R a t e
O b l i g a t i o n s t h e i n t e r e s t o n w h i c h i s i n c l u d e d i n g r o s s i n c o m e f o r f e d e r a l i n c o m e t a x p u r p o s e s ,
t h e n s u c h o b l i g a t i o n s s h a l l b e a s s u m e d t o b e a r i n t e r e s t a t a n i n t e r e s t r a t e e q u a l t o t h e a v e r a g e
O n e M o n t h U S D L I B O R R a t e d u r i n g t h e t h r e e m o n t h s p r e c e d i n g t h e m o n t h o f c a l c u l a t i o n , o r i f
t h e O n e M o n t h U S D L I B O R R a t e i s n o t a v a i l a b l e f o r s u c h p e r i o d , a n o t h e r s i m i l a r r a t e o r i n d e x
s e l e c t e d b y t h e B o r r o w e r a n d , f o r s o l o n g a s t h e T I F I A L o a n r e m a i n s O u t s t a n d i n g , a c c e p t a b l e t o
t h e T I F I A L e n d e r ;
( g ) i f O b l i g a t i o n s p r o p o s e d t o b e i s s u e d a r e p a r t o f a C o m m e r c i a l P a p e r
P r o g r a m , t h e p r i n c i p a l o f s u c h O b l i g a t i o n s m a y b e t r e a t e d a s i f s u c h p r i n c i p a l w e r e d u e b a s e d
1 4 3 5 2 8 7 4 . 7
3
2 5 8
upon a 30-year level amortization of principal from the date of calculation and the interest on •
such Obligations shall be calculated as if such Obligations were Variable Interest Rate
Obligations;
(h) if the variable interest on any Obligation plus the variable payments due to
the Borrower and Fixed Amortization Payments due from the Borrower under a Qualified Swap
Agreement or a Swap designated by the Borrower are treated by the Borrower as synthetic fixed
rate debt, the Variable Interest Rate Obligation may be treated as bearing such synthetic fixed
rate for the duration of the synthetic fixed rate;
(i) if the fixed interest on any Obligation plus the fixed payments due to the
Borrower and variable payments due from the Borrower under a Qualified Swap Agreement or a
Swap designated by the Borrower are treated by the Borrower as synthetic variablerate debt, the
fixed interest rate Obligation may be treated as bearing such synthetic variable rate for the
duration of the synthetic variable rate and such synthetic variable rate shall be calculated using
the principles of clauses (iv), (v) or (vi) hereof;
(j) if any of the Obligations are Short-Term Put Obligations, the principal of
such obligations may be treated as if such principal were due based upon a 30-year level
amortization of principal from the date of calculation and the interest on such obligations may be
calculated as if such obligations were variable interest rate Obligations;
(k) principal and interest payments on Obligations may be excluded to the
extent such payments are to be paid from amounts then currently on deposit with the Trustee or •
another fiduciary in escrow specifically and irrevocably therefor and interest payments on any
Obligations may be excluded to the extent that such interest payments are to be paid from
capitalized interest held by the Trustee or another fiduciary specifically to pay such interest,
including amounts held on deposit to pay capitalized interest on one or more Series of
Obligations;
(1) if any of the Obligations are, or upon issuance will be, obligations for
which the Borrower is entitled to receive Subsidy Payments, as evidenced by an Opinion of
Bond Counsel delivered with respect to such Obligations, the obligations may be treated as
bearing an interest rate equal to the rate of interest borne or assumed to be borne, as applicable,
by the obligations for the period of determination minus the Subsidy Payments to which the
Borrower is entitled for such period;
(m) any payment obligation under an Obligation that was or is optional or
contingent (such as the obligation to make a termination payment under a Qualified Swap
Agreement or a Swap), whether or not the option is exercised or the contingency occurs, and any
payments that are not scheduled payments, may be excluded;
(n) if any of the Obligations are, or upon issuance will be, obligations payable
in a currency other than lawful currency of the United States of America, then such obligations
shall be assumed to be payable in lawful currency of the United States at the rate payable by the
Borrower pursuant to the Borrower's related currency swap or contract entered into in connection
14352874.7
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259
•
"
"
"
w i t h s u c h o b l i g a t i o n s o r , i n t h e a b s e n c e o f s u c h s w a p o r c o n t r a c t , a t t h e r a t e d e t e r m i n e d b y t h e
B o r r o w e r u s i n g a c u r r e n c y m a r k e t c o n v e r s i o n f a c t o r s e l e c t e d b y t h e B o r r o w e r ; a n d
( o ) i f a n y o f t h e O b l i g a t i o n s a r e S u b o r d i n a t e O b l i g a t i o n s i n t h e f o r m o f o r
s e c u r i n g p a y m e n t o f a T I F I A L o a n , A n n u a l D e b t S e r v i c e o n s u c h T I F I A L o a n s h a l l i n c l u d e o n l y
a n n u a l T I F I A M a n d a t o r y D e b t S e r v i c e ; p r o v i d e d t h a t , f o r p u r p o s e s o f s u c h c a l c u l a t i o n d u r i n g t h e
p e r i o d p r i o r t o t h e D e b t S e r v i c e P a y m e n t C o m m e n c e m e n t D a t e , t h e T I F I A M a n d a t o r y D e b t
S e r v i c e s h a l l b e d e e m e d t o b e z e r o , a n d s u c h T I F I A L o a n s h a l l b e t r e a t e d f o r p u r p o s e s o f a l l
c a l c u l a t i o n s o f A n n u a l D e b t S e r v i c e a s S u b o r d i n a t e O b l i g a t i o n s u n l e s s a n d u n t i l t h e o c c u r r e n c e
o f a B a n k r u p t c y - R e l a t e d E v e n t , u p o n w h i c h o c c u r r e n c e s u c h T I F I A L o a n s h a l l b e t r e a t e d a s
H o l d e r o f a S e n i o r O b l i g a t i o n f o r s u c h p u r p o s e s .
" A n n u a l O p e r a t i n g B u d g e t " m e a n s t h e a n n u a l b u d g e t r e q u i r e d b y S e c t i o n 6 . 0 4 o f t h e
M a s t e r I n d e n t u r e p r o v i d e d t o t h e T I F I A L e n d e r i n a c c o r d a n c e w i t h S e c t i o n 2 1 ( b ) ( i i i ) o f t h i s
A g r e e m e n t .
" A n t i c i p a t e d T I F I A L o a n D i s b u r s e m e n t S c h e d u l e " m e a n s t h e s c h e d u l e s e t f o r t h a s
E x h i b i t B t o t h i s A g r e e m e n t , a s s u c h s c h e d u l e m a y b e a m e n d e d f r o m t i m e - t o - t i m e p u r s u a n t t o
S e c t i o n 4 .
" B a n k L e n d i n g M a r g i n " m e a n s , i n r e s p e c t o f a n y V a r i a b l e I n t e r e s t R a t e O b l i g a t i o n s ,
t h e " A p p l i c a b l e _ M a r g i n " a s d e f i n e d i n t h e a p p l i c a b l e A d d i t i o n a l F i n a n c i n g D o c u m e n t s .
" B a n k r u p t c y R e l a t e d E v e n t " m e a n s ( a ) a n i n v o l u n t a r y p r o c e e d i n g s h a l l b e c o m m e n c e d
o r a n i n v o l u n t a r y p e t i t i o n s h a l l b e f i l e d s e e k i n g ( i ) l i q u i d a t i o n , r e o r g a n i z a t i o n o r o t h e r r e l i e f i n
r e s p e c t o f t h e B o r r o w e r o r a n y o f i t s d e b t s , o r o f a s u b s t a n t i a l p a r t o f t h e a s s e t s o f t h e B o r r o w e r ,
u n d e r a n y I n s o l v e n c y L a w , o r ( i i ) t h e a p p o i n t m e n t o f a r e c e i v e r , t r u s t e e , l i q u i d a t o r , c u s t o d i a n ,
s e q u e s t r a t o r , c o n s e r v a t o r o r s i m i l a r o f f i c i a l f o r t h e B o r r o w e r f o r a s u b s t a n t i a l p a r t o f t h e a s s e t s o f
t h e B o r r o w e r , a n d , i n a n y c a s e r e f e r r e d t o i n t h e f o r e g o i n g s u b c l a u s e s ( i ) a n d ( i i ) , s u c h
p r o c e e d i n g o r p e t i t i o n s h a l l c o n t i n u e u n d i s m i s s e d f o r 6 0 d a y s o r a n o r d e r o r d e c r e e a p p r o v i n g o r
o r d e r i n g a n y o f t h e f o r e g o i n g s h a l l b e e n t e r e d ; ( b ) t h e B o r r o w e r s h a l l ( i ) a p p l y f o r o r c o n s e n t t o
t h e a p p o i n t m e n t o f a r e c e i v e r , t r u s t e e , l i q u i d a t o r , c u s t o d i a n , s e q u e s t r a t o r , c o n s e r v a t o r o r s i m i l a r
o f f i c i a l f o r t h e B o r r o w e r o r f o r a s u b s t a n t i a l p a r t o f t h e a s s e t s o f t h e B o r r o w e r , o r ( i i ) g e n e r a l l y
n o t b e p a y i n g i t s d e b t s a s t h e y b e c o m e d u e u n l e s s s u c h d e b t s a r e t h e s u b j e c t o f a b o n a f i d e
d i s p u t e , o r b e c o m e u n a b l e t o p a y i t s d e b t s g e n e r a l l y a s t h e y b e c o m e d u e , o r ( i i i ) m a k e a g e n e r a l
a s s i g n m e n t f o r t h e b e n e f i t o f c r e d i t o r s , o r ( i v ) c o n s e n t t o t h e i n s t i t u t i o n o f , o r f a i l t o c o n t e s t i n a
t i m e l y a n d a p p r o p r i a t e m a n n e r , a n y p r o c e e d i n g o r p e t i t i o n w i t h r e s p e c t t o i t d e s c r i b e d i n
c l a u s e ( a ) o f t h i s d e f i n i t i o n , o r ( v ) c o m m e n c e a v o l u n t a r y p r o c e e d i n g u n d e r a n y I n s o l v e n c y L a w ,
o r f i l e a v o l u n t a r y p e t i t i o n s e e k i n g l i q u i d a t i o n , r e o r g a n i z a t i o n , a n a r r a n g e m e n t w i t h c r e d i t o r s o r
a n o r d e r f o r r e l i e f u n d e r a n y I n s o l v e n c y L a w , o r ( v i ) f i l e a n a n s w e r a d m i t t i n g t h e m a t e r i a l
a l l e g a t i o n s o f a p e t i t i o n f i l e d a g a i n s t i t i n a n y p r o c e e d i n g r e f e r r e d t o i n t h e f o r e g o i n g
s u b c l a u s e s ( i ) t h r o u g h ( v ) , i n c l u s i v e , o f t h i s c l a u s e ( b ) , o r ( v i i ) t a k e a n y a c t i o n f o r t h e p u r p o s e o f
e f f e c t i n g a n y o f t h e f o r e g o i n g ; ( c ) ( i ) a l l o r a s u b s t a n t i a l p a r t o f t h e T r u s t E s t a t e s h a l l b e s o l d o r
o t h e r w i s e d i s p o s e d o f i n a p u b l i c o r p r i v a t e s a l e o r d i s p o s i t i o n p u r s u a n t t o a f o r e c l o s u r e o f t h e
L i e n s t h e r e o n s e c u r i n g a n y O b l i g a t i o n s , o r ( i i ) a l l o r a s u b s t a n t i a l p a r t o f t h e T r u s t E s t a t e s h a l l b e
t r a n s f e r r e d p u r s u a n t t o a s a l e o r d i s p o s i t i o n o f s u c h T r u s t E s t a t e i n l i e u o f f o r e c l o s u r e .
1 4 3 5 2 8 7 4 . 7
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2 6 0
"Base Case Financial Model" means a financial model prepared by the Borrower
forecasting the revenues and expenditures of the Project (including any revenues and •
expenditures collected or incurred prior to the Effective Date) for time periods through the final
maturity of the TIFIA Loan and based upon assumptions and methodology provided by the
Borrower and acceptable to the TIFIA Lender which shall be provided to the TIFIA Lender as a
fully functional Microsoft Excel -based financial model.
"Base Case Financial Plan" means the Financial Plan submitted within 60 days after the
Effective Date as set forth in Section 20(a).
"Base Case Projections" means the forecast for the Project prepared as of the Effective
Date using the Base Case Financial Model.
"Board" means the Board of Commissioners of the Borrower.
"Borrower" means the Riverside County Transportation Commission, a county
transportation commission duly existing under the laws of the State of California, or its
respective governmental successor or assignee under .State law.
"Borrower Fiscal Year" means, (a) the period of twelve months terminating on June 30
of each year or (b) or such other annual period selected and designated by the Borrower as its
Fiscal Year in accordance with applicable law and with prior written notice to the TIFIA Lender.
"Borrower's Authorized Representative" means any Person designated as such .•
pursuant to Section 24.
"Business Day" means any day other than a Saturday, a Sunday or other day on which
the Government or banks are authorized or obligated by law or executive order to be closed in
the State or the State of New York or in any city in which the Principal Office (as such term is
defined in the Master Indenture) of the Trustee or, with respect to any Obligations insured,
guaranteed by or payable from a Credit Facility (as such term is defined in the Master Indenture)
the office where draws are to be made on a Credit Provider (as such terffi is defined in the Master
Indenture) is located.
"Calculation Date" means each Semi-Annual Payment Date occurrmg after the
Effective Date.
"Calculation Period" means the twelve month period ending on the day prior to a
Calculation Date.
"Caltrans" means the California Department of Transportation.
"Caltrans DB Cooperative Agreement" means that certain Cooperative Agreement for
Design-Build of the State Route 91 Toll Facilities and Corridor Improvement Project, dated as of
July 25, 2012, by and between the Borrower and Caltrans, setting forth, among other things, the
manner in which the initial phase of the Riverside SR-91 Corridor Improvement Project will be
constructed in accordance with the CIP Plan using the design-build method of procurement as •
authorized by the CTC.
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" " C a p i t a l A p p r e c i a t i o n O b l i g a t i o n s " m e a n s t h e O b l i g a t i o n s d e s i g n a t e d a s C a p i t a l
A p p r e c i a t i o n O b l i g a t i o n s i n t h e S u p p l e m e n t a l I n d e n t u r e p r o v i d i n g f o r t h e i s s u a n c e o f s u c h
O b l i g a t i o n s a n d o n w h i c h i n t e r e s t i s c o m p o u n d e d a n d p a i d a t m a t u r i t y o r o n p r i o r r e d e m p t i o n .
" C a p i t a l E x p e n d i t u r e s F u n d " m e a n s t h e F u n d b y t h a t n a m e c r e a t e d p u r s u a n t t o S e c t i o n
5 . 0 2 o f t h e M a s t e r I n d e n t u r e .
" C a p i t a l E x p e n d i t u r e s F u n d P e r m i t t e d E x p e n d i t u r e s " m e a n s t h e e x p e n d i t u r e s
n e c e s s a r y t o c o m p l e t e t h e p r o j e c t s s p e c i f i e d m S c h e d u l e I t o t h e M a s t e r I n d e n t u r e w h i c h
a g g r e g a t e e x p e n d i t u r e s s h a l l n o t e x c e e d $ _ _ _ _ _
" C a p i t a l i z e d I n t e r e s t P e r i o d " m e a n s t h e p e r i o d b e g i n n i n g o n t h e E f f e c t i v e D a t e a n d
e n d i n g o n t h e d a y p r i o r t o t h e D e b t S e r v i c e P a y m e n t C o m m e n c e m e n t D a t e .
" C I P P l a n " m e a n s t h 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 s r e l a t i n g t o t h e P r o j e c t , i n c l u d i n g
p r o j e c t e d c o s t s , t h e u s e o f t o l l r e v e n u e s , a n d a p r o p o s e d c o m p l e t i o n s c h e d u l e , a n d t h e u s e o f t h e
d e s i g n - b u i l d m e t h o d o f p r o c u r e m e n t i n c o n n e c t i o n w i t h s u c h i m p r o v e m e n t s t o r e d u c e c o s t s ,
e x p e d i t e c o m p l e t i o n a n d a c h i e v e d e s i g n f e a t u r e s n o t a c h i e v a b l e � t h r o u g h t h e t r a d i t i o n a l d e s i g n -
b i d - b u i l d m e t h o d , a s d e s c r i b e d i n t h e P r o j e c t A u t h o r i z a t i o n R e q u e s t t h e B o r r o w e r s u b m i t t e d t o
t h e C T C o n J a n u a r y 1 , 2 0 1 0 .
" C o d e " m e a n s t h e I n t e r n a l R e v e n u e C o d e o f 1 9 8 6 , a s a m e n d e d f r o m t i m e t o t i m e , a n d
a n y r e g u l a t i o n s p r o m u l g a t e d t h e r e u n d e r .
" " C o n s t r u c t i o n P e r i o d " m e a n s t h e p e r i o d c o m m e n c i n g o n t h e E f f e c t i v e D a t e a n d e n d i n g
"
o n t h e S u b s t a n t i a l C o m p l e t i o n D a t e .
" C o n s t r u c t i o n S c h e d u l e " m e a n s t h e s c h e d u l e o n w h i c h t h e p r o p o s e d c o n s t r u c t i o n
t i m e t a b l e f o r e l e m e n t s o f t h e P r o j e c t i s s e t f o r t h a n d a t t a c h e d a s S c h e d u l e I I I t o t h i s A g r e e m e n t .
" C o n s u l t i n g E n g i n e e r " m e a n s a n i n d e p e n d e n t e n g i n e e r o r e n g i n e e r i n g f i r m , o r a n
a f f i l i a t e t h e r e o f , n a t i o n a l l y r e c o g n i z e d a s b e i n g e x p e r i e n c e d w i t h d e t e r m i n i n g t h e c o s t s o f
c o n s t r u c t i o n , o p e r a t i o n , m a i n t e n a n c e , r e p a i r , a n d / o r r e p l a c e m e n t o f f a c i l i t i e s s i m i l a r t o t h e
R i v e r s i d 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 .
" C o n v e r t i b l e C a p i t a l A p p r e c i a t i o n O b l i g a t i o n s " m e a n s O b l i g a t i o n s t h a t i n i t i a l l y a r e
i s s u e d a s C a p i t a l A p p r e c i a t i o n O b l i g a t i o n s , b u t l a t e r c o n v e r t t o O b l i g a t i o n s o n w h i c h i n t e r e s t i s
p a i d p e r i o d i c a l l y . C o n v e r t i b l e C a p i t a l A p p r e c i a t i o n O b l i g a t i o n s s h a l l b e C a p i t a l A p p r e c i a t i o n
O b l i g a t i o n s u n t i l t h e c o n v e r s i o n d a t e a n d f r o m a n d a f t e r s u c h c o n v e r s i o n d a t e s h a l l n o l o n g e r b e
C a p i t a l A p p r e c i a t i o n O b l i g a t i o n s , b u t s h a l l b e t r e a t e d a s C u r r e n t I n t e r e s t B o n d s h a v i n g a
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 i r A c c r e t e d V a l u e o n t h e c o n v e r s i o n d a t e .
" C o v e r a g e C a l c u l a t i o n D a t e " h a s t h e m e a n i n g a s s i g n e d t o s u c h t e r m i n S e c t i o n 1 5 ( o ) .
" C o v e r a g e R a t i o " h a s t h e m e a n i n g a s s i g n e d t o s u c h t e r m i n S e c t i o n 1 5 ( o ) .
" C o v e n a n t C r o s s D e f a u l t " h a s t h e m e a n i n g s e t f o r t h i n S e c t i o n 1 8 ( a ) ( v ) .
1 4 3 5 2 8 7 4 . 7
7
2 6 2
"CPI" means the Consumer Price Index for All Urban Consumers (CPI-U) for the U.S. •
City Average for All Items, 1982-84=100 (not seasonally adjusted), or its successor, published
by the Bureau of Labor Statistics, with, unless otherwise specified herein, January 2013 as the
base period.
"CTC" means the California Transportation Commission.
"Credit Facility" means a policy of insurance, letter of credit, line of credit, standby
purchase agreement, revolving credit agreement or other credit arrangement pursuant to which a
Credit Provider (as such term is defined in the Master Indenture) provides credit or liquidity
support with respect to, or available for, the payment of interest, principal or purchase price of
any series of Bonds, as the same may be amended from time to time pursuant to its terms, and
any replacements therefor.
"Debt Service Payment Commencement Date" means the fifth (5th) anniversary of the
date of Substantial Completion or, if such date does not fall on a Semi-Annual Payment Date,
then the Debt Service Payment Commencement Date shall be the first Semi-Annual Payment
Date to occur prior to the fifth (5th) anniversary of the Substantial Completion Date.
"Design-Build Contract" means the Design-Build Contract, dated , 2013,
between the Borrower and the Design-Build Contractor and any replacement contracts entered
into by the Borrower following any termination of such agreement, [each in a form approved by
the FHWA California Division Office.]
"Design-Build Contractor" means and any successorthereto. ----------------
"Development Default" has the meaning set forth in Section 18(a)(iii).
"Disbursements and Contributions Certificate" means a certificate (a) demonstrating
that the proceeds of the TIFIA Loan to be disbursed on the relevant date of disbursement do not
exceed the TIFIA Pro Rata Share on an aggregate basis, (b) indicating the amount of Senior
Obligation proceeds which as of the date of the Disbursements and Contributions Certificate
have been utilized by the Borrower for purposes of funding Project Costs, (c) executed by the
Borrower's Authorized Representative, and (d) delivered pursuant to Section 4 of this
Agreement.
"Effective Date" means June_, 2013.
"Eligible Project Costs" means amounts identified as Eligible Project Costs in the
Project Budget attached to this Agreement as Schedule I, subject to the proviso below,
substantially all of which are paid by or for the account of the Borrower in connection with the
Project, which may include prior Project expenditures for the -year period preceding the
application date, all of which shall arise from the following:
(a) development phase activities, including planning, feasibility analysis, revenue
forecasting, environmental review, permitting, preliminary engineering and design work, and
other preconstruction activities;
14352874.7
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•
•
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"
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( b ) c o n s t r u c t i o n , r e c o n s t r u c t i o n , r e h a b i l i t a t i o n , r e p l a c e m e n t , a n d a c q U i s i t i o n o f
r e a l p r o p e r t y ( i n c l u d i n g l a n d r e l a t e d t o t h e P r o j e c t a n d i m p r o v e m e n t s t o l a n d ) , e n v i r o n m e n t a l
m i t i g a t i o n , c o n s t r u c t i o n c o n t i n g e n c i e s , a n d a c q u i s i t i o n o f e q u i p m e n t ; a n d
( c ) c a p i t a l i z e d i n t e r e s t n e c e s s a r y t o m e e t m a r k e t r e q u i r e m e n t s , r e a s o n a b l y
r e q u i r e d r e s e r v e f u n d s , c a p i t a l i s s u a n c e e x p e n s e s , a n d o t h e r c a r r y i n g c o s t s d u r i n g c o n s t r u c t i o n ;
p r o v i d e d , h o w e v e r , t h a t t h e T I F I A L e n d e r c o n f i r m s t o t h e e x t e n t c o n s i s t e n t w i t h F e d e r a l l a w t h a t
c o s t c a t e g o r i e s a f f i r m a t i v e l y i n d i c a t e d a s " E l i g i b l e P r o j e c t C o s t s " i n S c h e d u l e I I t o t h i s
A g r e e m e n t f a l l w i t h i n t h i s d e f i n i t i o n o f " E l i g i b l e P r o j e c t C o s t s " .
" E v e n t o f D e f a u l t " h a s t h e m e a n i n g s e t f o r t h i n S e c t i o n 1 8 .
" F H W A " m e a n s t h e F e d e r a l H i g h w a y A d m i n i s t r a t i o n , a n a g e n c y o f U S D O T .
" F H W A C a l i f o r n i a D i v i s i o n O f f i c e " m e a n s t h e C a l i f o r n i a D i v i s i o n O f f i c e o f t h e
F H W A h e a d q u a r t e r e d i n S a c r a m e n t o , C a l i f o r n i a .
" F i n a l M a t u r i t y D a t e " m e a n s J u l y 1 , 2 0 4 9 o r t h e l a s t P a y m e n t D a t e o c c u r r i n g n o l a t e r
t h a n 3 2 y e a r s a f t e r t h e S u b s t a n t i a l C o m p l e t i o n D a t e , w h i c h e v e r d a t e i s e a r l i e r .
" F i n a n c i a l P l a n " m e a n s ( a ) t h e B a s e C a s e F i n a n c i a l P l a n a n d ( b ) t h e a n n u a l u p d a t e s
t h e r e t o r e q u i r e d p u r s u a n t t o S e c t i o n 2 0 ( a ) o f t h i s A g r e e m e n t .
" F i n a n c i n g D o c u m e n t s " m e a n s t h i s A g r e e m e n t , t h e M a s t e r 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 .
" F i r s t S u p p l e m e n t a l I n d e n t u r e " m e a n s t h 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 , b y a n d
b e t w e e n t h e B o r r o w e r a n d t h e T r u s t e e , d a t e d a s o f J u n e 1 , 2 0 1 3 , r e l a t i n g t o t h e I n i t i a l S e n i o r
O b l i g a t i o n s .
" F i x e d A m o r t i z a t i o n P a y m e n t C o m m e n c e m e n t D a t e " m e a n s t h e P a y m e n t D a t e
f o l l o w i n g t h e e n d o f t h e [ ] c o n s e c u t i v e P a y m e n t P e r i o d a f t e r t h e D e b t S e r v i c e P a y m e n t
C o m m e n c e m e n t D a t e .
" F i x e d A m o r t i z a t i o n P a y m e n t P e r i o d " m e a n s t h e p e r i o d c o m m e n c i n g o n t h e F i x e d
A m o r t i z a t i o n P a y m e n t C o m m e n c e m e n t D a t e a n d e n d i n g o n t h e F i n a l M a t u r i t y D a t e ( o r o n s u c h
e a r l i e r d a t e a s t h e T I F I A L o a n a n d a l l o t h e r a m o u n t s p a y a b l e h e r e u n d e r s h a l l b e p a i d i n f u l l ) .
" G A A P " m e a n s 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 f o r s t a t e a n d l o c a l
g o v e r n m e n t s , w h i c h a r e t h e m i n i m u m s t a n d a r d s o f a n d g u i d e l i n e s f o r f i n a n c i a l a c c o u n t i n g a n d
r e p o r t i n g .
" G o v e r n m e n t " m e a n s t h e U n i t e d S t a t e s o f A m e r i c a a n d i t s d e p a r t m e n t s a n d a g e n c i e s .
" G o v e r n m e n t O b l i g a t i o n s " m e a n s ( a ) d i r e c t o b l i g a t i o n s o f , o r o b l i g a t i o n s t h e p r i n c i p a l
o f a n d t h e i n t e r e s t o n w h i c h a r e u n c o n d i t i o n a l l y g u a r a n t e e d b y , t h e G o v e r n m e n t , ( b ) b o n d s ,
d e b e n t u r e s o r n o t e s i s s u e d b y a n y o f t h e f o l l o w i n g F e d e r a l A g e n c i e s : B a n k s f o r C o o p e r a t i v e s ,
1 4 3 5 2 8 7 4 . 7
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2 6 4
Federal Intermediate Credit Ba,nks, Federal Home Loan Banks, Export-Import Bank of the •
United States, Government National Mortgage Association or Federal Land Banks,
(c) obligations issued or guaranteed by an agency of the United States of America or Person
controlled or supervised by and acting as an instrumentality of the United States of America
pursuant to authority granted by the Congress, and (d) evidences of ownership of proportionate
interests in future interest or principal payments on obligations specified in clauses (a), (b) and
(c) of this definition held by a bank or trust company as custodian and which underlying
obligations are not available to satisfy any claim of the custodian or any Person claiming through
the custodian or to whom the custodian may be obligated.
"Governmental Approval" means all authorizations, consents, approvals, waivers,
exceptions, variances, filings, permits, orders, licenses, exemptions and declarations of or with
any Governmental Authority.
"Governmental Authority" means any federal, state, provincial, county, city, town,
village, municipal or other government or governmental department, commission, council, court,
board, bureau, agency, authority or instrumentality (whether executive, legislative, judicial,
administrative or regulatory), of or within the United States of America or its territories or
possessions, including, without limitation, the State and its counties and municipalities, and their
respective courts, agencies, instrumentalities and regulatory bodies, or any entity that acts "on
behalf of' any of the foregoing, whether as an agency or authority of such body.
"Hedge Deposit" has the meaning set forth in Section 15(s)(vii)(A).
"Hedge Documents" has the meaning set forth in Section 15( s )(ii).
"Hedging Acquisition Account" has the meaning set forth in Section 15(s)(vii)(A).
"Hedging Agreement" means the ISDA Master Agreement(s) and the related schedules
and confirmations, to be entered into by the Borrower and a Hedging Bank and any other
agreement entered into, or to be entered into, by the Borrower and a Hedging Bank for a
Hedging Transaction, in each case in form acceptable to the TIFIA Lender.
"Hedging Banks" means any Qualified Hedge Provider that becomes a party to a
Hedging Agreement and their respective successors and assigns.
•
"Hedging Obligations" means, collectively, the payment of (a) all scheduled amounts
payable to the Hedging Banks by the Borrower under the Hedging Agreements (including
interest accruing after the date of any filing by the Borrower of any petition in bankruptcy or the
commencement of any bankruptcy, insolvency or similar proceeding with respect to the
Borrower), net of all scheduled amounts payable to the Borrower by such Hedging Banks, and
(b) all other indebtedness, fees, indemnities and other amounts payable by the Borrower to the
Hedging Banks under such Hedging Agreements, net of all other indebtedness, fees, indemnities
and other amounts payable by the Hedging Banks to the Borrower under such Hedging
Agreements; provided, that Hedging Obligations shall not include Hedging Termination
Obligations. For the avoidance of doubt, all calculations of such amounts payable under the
Hedging Agreements shall be made in accordance with the terms of the applicable Hedging •
Agreements.
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" H e d g i n g T e r m i n a t i o n O b l i g a t i o n s " m e a n s t h e a g g r e g a t e a m o u n t p a y a b l e t o t h e
H e d g i n g B a n k s b y t h e B o r r o w e r u p o n t h e e a r l y u n w i n d o f a l l o r a p o r t i o n o f t h e H e d g i n g
A g r e e m e n t s , n e t o f a l l a m o u n t s p a y a b l e t o t h e B o r r o w e r b y s u c h H e d g i n g B a n k s u p o n t h e e a r l y
u n w i n d o f a l l o r a p o r t i o n o f s u c h H e d g i n g A g r e e m e n t s . F o r t h e a v o i d a n c e o f d o u b t , a l l
c a l c u l a t i o n s o f s u c h a m o u n t s p a y a b l e u n d e r t h e H e d g i n g A g r e e m e n t 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 t e r m s o f t h e a p p l i c a b l e H e d g i n g A g r e e m e n t s .
" H e d g i n g T r a n s a c t i o n " m e a n s a n y i n t e r e s t r a t e p r o t e c t i o n a g r e e m e n t , i n t e r e s t r a t e s w a p
t r a n s a c t i o n , i n t e r e s t r a t e " ' c a p " , " ' c o l l a r " o r " ' f l o o r " t r a n s a c t i o n , i n t e r e s t r a t e f u t u r e , i n t e r e s t r a t e
o p t i o n o r o t h e r h e d g i n g a r r a n g e m e n t e n t e r e d i n t o b y , o r a t t h e d i r e c t i o n o f , t h e B o r r o w e r a n d
s e c u r e d b y o r p a y a b l e f r o m R e v e n u e s .
" I n d e n t u r e E v e n t o f D e f a u l t " m e a n s a n e v e n t o f d e f a u l t s e t f o r t h i n S e c t i o n 7 . 0 1 o f t h e
M a s t e r I n d e n t u r e .
" I n i t i a l S e n i o r O b l i g a t i o n s " m e a n s t h e R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n
T o l l R e v e n u e S e n i o r L i e n B o n d s , 2 0 1 3 S e r i e s A 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 T o l l R e v e n u e S e n i o r L i e n B o n d s , 2 0 1 3 S e r i e s B .
" I n s o l v e n c y L a w s " m e a n s t h e U n i t e d S t a t e s B a n k r u p t c y C o d e , 1 1 U . S . C . � 1 0 1 e t s e q . ,
a s f r o m t i m e - t o - t i m e a m e n d e d a n d i n e f f e c t , a n d a n y s t a t e b a n k r u p t c y , i n s o l v e n c y , r e c e i v e r s h i p
o r s i m i l a r l a w n o w o r h e r e a f t e r i n e f f e c t .
" I n t e r i m P a y m e n t D a t e " m e a n s a n y d a y o c c u r r i n g d u r i n g t h e P a y m e n t P e r i o d t h a t ( a ) i s
a d a t e o n w h i c h i n t e r e s t o n o r p r i n c i p a l o f a n y O b l i g a t i o n s i s p a y a b l e a n d ( b ) i s n o t a S e m i -
A n n u a l P a y m e n t D a t e .
" I n v e s t m e n t G r a d e R a t i n g " m e a n s a r a t i n g a s s i g n e d b y a N a t i o n a l l y R e c o g n i z e d R a t i n g
A g e n c y w h i c h i s n o l o w e r t h a n " ' B B B - " o r " ' B a a 3 " .
" L i e n " m e a n s a n y m o r t g a g e , p l e d g e , h y p o t h e c a t i o n , a s s i g n m e n t , m a n d a t o r y d e p o s i t
a r r a n g e m e n t , e n c u m b r a n c e , l i e n ( s t a t u t o r y o r o t h e r ) , o r p r e f e r e n c e , p r i o r i t y o r o t h e r s e c u r i t y
a g r e e m e n t o f a n y k i n d o r n a t u r e w h a t s o e v e r , 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 s a l e - l e a s e b a c k
a r r a n g e m e n t , a n y c o n d i t i o n a l s a l e o r o t h e r t i t l e r e t e n t i o n a g r e e m e n t , a n y f i n a n c i n g l e a s e h a v i n g
s u b s t a n t i a l l y t h e s a m e e f f e c t a s a n y o f t h e f o r e g o i n g , a n d t h e f i l i n g o f a n y f i n a n c i n g s t a t e m e n t o r
s i m i l a r i n s t r u m e n t u n d e r a p p l i c a b l e l a w .
" L o a n A m o r t i z a t i o n S c h e d u l e " m e a n s t h e L o a n A m o r t i z a t i o n S c h e d u l e a t t a c h e d a s
A p p e n d i x T w o t o t h e T I F I A B o n d , a c o p y o f w h i c h i s a t t a c h e d h e r e t o a s E x h i b i t A , d e l i v e r e d
p u r s u a n t t o S e c t i o n 9 ( g ) , a s a m e n d e d f r o m t i m e - t o - t i m e i n a c c o r d a n c e w i t h S e c t i o n 7 a n d
S e c t i o n 9 ( g ) .
" L o a n U n d e r w r i t i n g R a t e " m e a n s f o r a n y p e r i o d a n d w i t h r e s p e c t t o a n y V a r i a b l e
I n t e r e s t R a t e O b l i g a t i o n s , t h e i n i t i a l r a t e e q u a l t o t h e s u m o f t h e l o n g - t e r m f i x e d s w a p r a t e , p l u s
t h e s w a p m a r g i n , p l u s a n y a p p l i c a b l e B a n k L e n d i n g M a r g i n , c o n t e m p l a t e d i n a n u p d a t e d B a s e
C a s e F i n a n c i a l M o d e l p r e p a r e d b y t h e B o r r o w e r i n r e s p e c t o f s u c h V a r i a b l e I n t e r e s t R a t e
O b l i g a t i o n s , a n d t o b e s e t f o r t h i n e a c h c e r t i f i c a t e d e l i v e r e d p u r s u a n t t o S e c t i o n 1 5 ( s ) o f t h i s
A g r e e m e n t .
1 4 3 5 2 8 7 4 . 7
1 1
2 6 6
"Long-Dated Qualified Hedge" has the meaning set forth in Section 18(s)(vii)(A) .
"Master Custodial Depository Agreement" means any agreement entered into by the
Borrower relating to the collection and distribution of tolls relating to the Toll Road.
"Master Indenture" means the Master Indenture between the Borrower and the Trustee,
dated as of June 1, 2013, as supplemented or amended by any Supplemental Indenture as defined
in the Master Indenture, including without limitation, the First Supplemental Indenture and the
Second Supplemental Indenture.
"Material Adverse Effect" means a material adverse change in (a) the Project or the
business, property or financial condition of the Toll Road, (b) the ability of the Borrower to
perform or comply with any of its material obligations under the Master Indenture or the TIFIA
Loan Documents or the Principal Project Contracts to which it is a party, (c) the validity or
priority of the Lien on the Trust Estate in favor of the TIFIA Lender or (d) the TIFIA Lender's
rights or benefits available under this Agreement.
"Maximum Annual Debt Service" means the highest amount of Annual Debt Service
due on the applicable Obligations of the Borrower for any Calculation Period during the period
from the date of such determination through the final maturity date of the applicable Obligations
then Outstanding and proposed to be issued.
"Misrepresentation Cross Default" has the meaning set forth in Section 18(a)(v).
•
"Monthly Funding Date" means the last day of each calendar month or, if such day is •
not a Business Day, the preceding Business Day.
"Nationally Recognized Rating Agency" means Standard & Poor's Rating Group,
Moody's Investors Services, Inc., Fitch Ratings or another nationally recognized statistical rating
organization, identified by the Securities and Exchange Commission.
"Net Revenue" means for any Borrower Fiscal Year, Revenue less Operating and
Maintenance Expenses for that Borrower Fiscal Year (excluding in such calculation, any
extraordinary or one-time revenues from Revenue for such Borrower Fiscal Year), as set forth in
(a) the audited financial statement of the Borrower for Borrower Fiscal Years for which audited
financial statements are available, (b) to the extent that audited financial statements are not
available, the unaudited financial statements of the Borrower for Borrower Fiscal Years for
which unaudited financial statements are available or (c) to the extent that neither audited
financial statements nor unaudited financial statements are available, the projections of the
Borrower as set forth in the most recent Financial Plan. Net Revenue shall not include any
amount on deposit in the Senior Lien Bond Reserve Fund, the Permitted Second Lien Obligation
Reserve Fund, the Subordinate Obligation Reserve Fund, or any Subsidy Payments; provided
however, that in no event shall "Toll Revenue" include Subsidy Payments and (y) for purposes
of Sections 3.01, 3.03 and 6.03 of the Master Indenture and Section 18(o) hereof, Toll Revenue
shall not include amounts received under clauses (c), (d) and (e) above.
"Obligations" means all indebtedness of the Borrower payable from Revenue incurred or •
assumed by the Borrower for borrowed money (including indebtedness arising under Credit
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"
"
S u p p o r t I n s t r u m e n t s ) a n d a l l o t h e r f i n a n c i n g o b l i g a t i o n s o f t h e B o r r o w e r r e l a t i n g t o t h e T o l l
R o a d t h a t , i n a c c o r d a n c e w i t h G A A P , a r e i n c l u d e d a s a l i a b i l i t y o n a b a l a n c e s h e e t f o r t h e T o l l
R o a d b o o k s a n d r e c o r d s , i n c l u d i n g a n y b o n d s , n o t e s , c e r t i f i c a t e s o r o t h e r o b l i g a t i o n s , a s t h e c a s e
m a y b e , a u t h e n t i c a t e d a n d d e l i v e r e d u n d e r a n d p u r s u a n t t o t h e M a s t e r I n d e n t u r e a s S e n i o r
O b l i g a t i o n s , P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s o r S u b o r d i n a t e O b l i g a t i o n s . F o r t h e p u r p o s e o f
d e t e r m i n i n g t h e " O b l i g a t i o n s " p a y a b l e f r o m R e v e n u e , O b l i g a t i o n s t h a t a r e n o l o n g e r O u t s t a n d i n g
s h a l l b e e x c l u d e d .
" O C T A " m e a n s t h e O r a n g e C o u n t y T r a n s p o r t a t i o n A u t h o r i t y , a p u b l i c a g e n c y d u l y
f o r m 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 , a n d a n y s u c c e s s o r t h e r e t o .
" O C T A C o o p e r a t i v e A g r e e m e n t " m e a n s t h a t c e r t a i n C o o p e r a t i v e A g r e e m e n t f o r S t a t e
R o u t e 9 1 E x p r e s s L a n e s a n d C o r r i d o r I m p r o v e m e n t s 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 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 C o m m i s s i o n , d a t e d a s o f D e c e m b e r 1 6 , 2 0 1 1 ,
b y a n d b e t w e e n t h e B o r r o w e r a n d O C T A , s e t t i n g f o r t h , a m o n g o t h e r t h i n g s , t h e m a n n e r i n w h i c h
t h e i n i t i a l p h a s e o f t h e R i v e r s i d 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 w i l l b e c o n s t r u c t e d i n
a c c o r d a n c e w i t h t h e C I P P l a n u s i n g t h e d e s i g n - b u i l d m e t h o d o f p r o c u r e m e n t a s a u t h o r i z e d b y
S e c t i o n 6 8 0 2 o f t h e C a l i f o r n i a P u b l i c C o n t r a c t C o d e .
" O C T A F r a n c h i s e A g r e e m e n t " m e a n s t h e A m e n d e d a n d R e s t a t e d D e v e l o p m e n t
F r a n c h i s e A g r e e m e n t , d a t e d a s o f J u n e 3 0 , 1 9 9 3 , 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
A m e n d m e n t 1 , d a t e d a s o f J u l y 1 6 , 1 9 9 3 , A m e n d m e n t 2 , d a t e d D e c e m b e r 3 0 , 2 0 0 2 a n d
A m e n d m e n t N o . 3 t o A m e n d e d a n d R e s t a t e d D e v e l o p m e n t F r a n c h i s e A g r e e m e n t ( S t a t e R o u t e 9 1
M e d i a n I m p r o v e m e n t s ) , d a t e d a s o f D e c e m b e r 1 2 , 2 0 1 1 , e a c h b y a n d b e t w e e n C a l t r a n s a n d
O C T A , a s s u c c e s s o r i n i n t e r e s t t o t h e C a l i f o r n i a P r i v a t e T r a n s p o r t a t i o n C o m p a n y , L . P . ( " C P T C " )
p u r s u a n t t o t h e E s t o p p e l C e r t i f i c a t e a n d A s s i g n m e n t a n d A s s u m p t i o n A g r e e m e n t , d a t e d a s o f
D e c e m b e r 3 0 , 2 0 0 2 , b y a n d a m o n g C P T C , O C T A , a n d C a l t r a n s .
" O F A C " m e a n s t h e O f f i c e o f F o r e i g n A s s e t s C o n t r o l o f t h e U n i t e d S t a t e s D e p a r t m e n t o f
t h e T r e a s u r y a n d i t s s u c c e s s o r s .
" O p e r a t i n g A g r e e m e n t " m e a n s t h e S R - 9 1 E x p r e s s L a n e s O p e r a t i n g A g r e e m e n t , d a t e d
L _ _ _ _ , 2 0 _ ] , b y a n d a m o n g t h e B o r r o w e r , O C T A a n d t h e T o l l O p e r a t o r , a s a m e n d e d ,
m o d i f i e d , s u p p l e m e n t e d i n a c c o r d a n c e w i t h t h e t e r m s o f t h e M a s t e r I n d e n t u r e a n d t h e O p e r a t i n g
A g r e e m e n t , s u b j e c t t o t h e t e r m s o f t h e M a s t e r I n d e n t u r e , o r a n y o t h e r o p e r a t i n g a g r e e m e n t
e n t e r e d i n t o b y t h e B o r r o w e r a n d o n e o r m o r e e n t i t i e s i n a c c o r d a n c e w i t h t h e t e r m s o f t h e M a s t e r
I n d e n t u r e .
" O p e r a t i n g a n d M a i n t e n a n c e E x p e n s e s " m e a n s a l l r e a s o n a b l e c u r r e n t e x p e n s e s
i n c u r r e d a n d p a i d o r p a y a b l e b y t h e B o r r o w e r f o r t h e o p e r a t i o n a n d m a i n t e n a n c e o f t h e T o l l R o a d
p a y a b l e f r o m R e v e n u e , d e t e r m i n e d i n a c c o r d a n c e w i t h G A A P , 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 ,
p a y m e n t s w i t h r e s p e c t t o f i n a n c i n g l e a s e s a n d i n s t a l l m e n t p u r c h a s e a g r e e m e n t s , a l l a m o u n t s p a i d
o r p a y a b l e u n d e r t h e O p e r a t i n g A g r e e m e n t , t h e P o l i c e S e r v i c e s A g r e e m e n t a n d s i m i l a r
a g r e e m e n t s , c o s t s f o r o p e r a t i o n , m a i n t e n a n c e a n d r e p a i r , c o n s u m a b l e s , p a y m e n t s u n d e r a n y l e a s e
o r r e n t a l p a y m e n t s p r o p e r l y c o n s i d e r e d t o b e o p e r a t i n g e x p e n s e s , p a y m e n t s p u r s u a n t t o
a g r e e m e n t s f o r t h e m a n a g e m e n t o f t h e T o l l R o a d , t a x e s , p r e m i u m s p a i d o r p a y a b l e o n a n y
i n s u r a n c e , p a y m e n t s f o r o v e r s i g h t s e r v i c e s , a l l a d m i n i s t r a t i v e , e n g i n e e r i n g a n d p o l i c i n g c o s t s ,
1 4 3 5 2 8 7 4 . 7
1 3
2 6 8
costs for any security, toll collection and enforcement expenses, fees and expenses of the Traffic •
Consultant, the Trustee, each trustee for or holder of Permitted Second Lien Obligations or
Subordinate Obligations, any rating agency, credit, liquidity or remarketing fees relating to
Senior Obligations, and any other Secured Creditor (for the avoidance of doubt, such fees,
administrative costs and expenses do not include any commitment fees, termination fees, fines or
other penalties or any payments to be made to Swap Parties including Hedging Obligations and
Hedging Termination Obligations), any insurance consultant, legal and accounting expenses, and
any other reasonable and necessary expense paid or payable for the operation and maintenance of
the Toll Road, but excluding, expenses paid or payable from proceeds of Obligations, capital
expenditures, expenditures for rehabilitation and operational improvement projects on the Toll
Road, expenditures for obsolescence charges or reserves therefore, debt service for Obligations
and any non-cash charges, such as depreciation, amortization of intangibles and other
bookkeeping entries of a similar nature.
"Operating and Maintenance Fund" means the fund created pursuant to and
designated as such in Section 5.05 of the Master Indenture and held by the Authority.
"Ordinance" means Ordinance No. 02-001, named the "Transportation Expenditure Plan
and Retail Transaction and Use Tax Ordinance," adopted by the Borrower on May 8, 2002,
pursuant to the provisions of the Sales Tax Act.
"Other Loan Documents" has the meaning set forth in Section 18(a)(v).
"Other Material Indebtedness" means the Senior Obligations and any Permitted
Second Lien Obligations.
"Outstanding TIFIA Loan Balance" means the aggregate principal amount drawn by
the Borrower and then outstanding with respect to the TIFIA Loan, as determined in accordance
with Section 7.
"Parity Obligations" means obligation of the Borrower that are secured by the Trust
Estate on a parity with the Senior Lien Bonds, including payments to the holders of obligations
of the Borrower entered into pursuant to California Government Code section 5922 (or any
similar statute), in each case, to the extent the Borrower has contracted to make those payments
as Parity Obligations.
"Payment Date" means each Semi-Annual Payment Date or Interim Payment Date.
"Payment Default" has the meaning set forth in Section 18(a)(i).
"Payment Period" means any period of six months that ends on a Payment Date,
commencing with the six month period ending on the Debt Service Payment Commencement
Date.
"Permitted Debt" means any bond, note, certificate, warrant, lease, contract or other
financial obligation or security that is not secured, in whole or in part, by Revenue, and the
following obligations that are secured by Revenue:
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( a ) S e n i o r O b l i g a t i o n s , i n c l u d i n g t h e I n i t i a l S e n i o r O b l i g a t i o n s a n d a n y o t h e r
S e n i o r O b l i g a t i o n s t h a t m e e t t h e r e q u i r e m e n t s o f S e c t i o n s 3 . 0 1 ( b ) a n d ( c ) a n d 3 . 0 2 o f t h e M a s t e r
I n d e n t u r e a n d c o n s e n t e d t o b y t h e T I F I A L e n d e r i n a c c o r d a n c e w i t h s u c h p r o v i s i o n s ;
( b ) P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s o r S u b o r d i n a t e O b l i g a t i o n s t h a t m e e t
t h e r e q u i r e m e n t s o f S e c t i o n s 3 . 0 3 ( b ) a n d ( c ) a n d 3 . 0 4 o f t h e M a s t e r I n d e n t u r e a n d c o n s e n t e d t o
b y t h e T I F I A L e n d e r i n a c c o r d a n c e w i t h s u c h p r o v i s i o n s ;
( c ) t h e T I F I A L o a n a n d t h e T I F I A B o n d ( w h i c h b o n d s h a l l b e a S u b o r d i n a t e
O b l i g a t i o n u n d e r t h e M a s t e r I n d e n t u r e u n t i l t h e o c c u r r e n c e o f B a n k r u p t c y R e l a t e d E v e n t u p o n
w h i c h i t w i l l b e c o m e a S e n i o r O b l i g a t i o n ) ; a n d
( d ) i n d e b t e d n e s s i n c u r r e d i n r e s p e c t o f a n y H e d g e A g r e e m e n t .
[ " P e r m i t t e d H e d g i n g T e r m i n a t i o n " m e a n s t h e e a r l y t e r m i n a t i o n , i n w h o l e o r i n p a r t , o f
a n y H e d g i n g T r a n s a c t i o n ( a ) a t t h e r e q u e s t o f t h e B o r r o w e r a s a r e s u l t o f a d e t e r m i n a t i o n b y t h e
B o r r o w e r t h a t s u c h ( o r a n y p a r t o f s u c h ) H e d g i n g T r a n s a c t i o n i s n o l o n g e r n e c e s s a r y o r r e q u i r e d
u n d e r t h e t e r m s o f t h i s A g r e e m e n t o r ( b ) p u r s u a n t t o t h e t e r m s o f a n y H e d g i n g A g r e e m e n t
e v i d e n c i n g s u c h H e d g i n g T r a n s a c t i o n w h i c h p r o v i d e s f o r t h e n o t i o n a l a m o u n t o f s u c h H e d g i n g
T r a n s a c t i o n t o a m o r t i z e o r o t h e r w i s e b e r e d u c e d f r o m t i m e t o t i m e . ]
" P e r m i t t e d I n v e s t m e n t s " m e a n s w i t h r e s p e c t t o t h e i n v e s t m e n t o f a m o u n t s o n d e p o s i t i n
a c c o u n t s a n d s u b a c c o u n t s r e f e r r e d t o i n S e c t i o n 8 ( d ) o f t h i s A g r e e m e n t , a n d t h e S u b o r d i n a t e
O b l i g a t i o n s A c c o u n t w i t h i n t h e P r o j e c t F u n d a n d t h e S u b o r d i n a t e O b l i g a t i o n s R e s e r v e F u n d ( t o
b e d i s c u s s e d ) S u b o r d i n a t e O b l i g a t i o n s :
( a ) G o v e r n m e n t O b l i g a t i o n s ;
( b ) c e r t i f i c a t e s o f d e p o s i t w h e r e t h e c e r t i f i c a t e s a r e c o l l a t e r a l l y s e c u r e d b y
s e c u r i t i e s o f t h e t y p e d e s c r i b e d i n c l a u s e ( a ) o f t h i s d e f i n i t i o n a n d h e l d b y a t h i r d p a r t y a s e s c r o w
a g e n t o r c u s t o d i a n , o f a m a r k e t v a l u e n o t l e s s t h a n t h e a m o u n t o f t h e c e r t i f i c a t e s o f d e p o s i t s o
s e c u r e d , i n c l u d i n g i n t e r e s t , b u t t h i s c o l l a t e r a l i s n o t r e q u i r e d t o t h e e x t e n t t h e c e r t i f i c a t e s o f
d e p o s i t a r e i n s u r e d b y a n a g e n c y o f t h e G o v e r n m e n t ;
( c ) r e p u r c h a s e a g r e e m e n t s w h e n c o l l a t e r a l i z e d b y s e c u n t t e s o f t h e t y p e
d e s c r i b e d i n c l a u s e ( a ) o f t h i s d e f i n i t i o n a n d h e l d b y a t h i r d p a r t y a s e s c r o w a g e n t o r c u s t o d i a n ,
o f a m a r k e t v a l u e n o t l e s s t h a n t h e a m o u n t o f t h e r e p u r c h a s e a g r e e m e n t s o c o l l a t e r a l i z e d ,
i n c l u d i n g i n t e r e s t ;
( d ) m o n e y m a r k e t f u n d s t h a t i n v e s t s o l e l y i n o b l i g a t i o n s o f t h e U n i t e d S t a t e s ,
i t s a g e n c i e s a n d i n s t r u m e n t a l i t i e s , a n d h a v i n g a r a t i n g b y a N a t i o n a l l y R e c o g n i z e d R a t i n g
A g e n c y a t l e a s t e q u i v a l e n t t o , o r h i g h e r t h a n , t h e r a t i n g o f t h e U n i t e d S t a t e s G o v e r n m e n t ; a n d
( e ) c o l l a t e r a l i z e d i n v e s t m e n t a g r e e m e n t s o r o t h e r c o n t r a c t u a l a g r e e m e n t s w i t h
c o r p o r a t i o n s , f i n a n c i a l i n s t i t u t i o n s o r n a t i o n a l a s s o c i a t i o n s w i t h i n t h e U n i t e d S t a t e s , p r o v i d e d
t h a t t h e s e n i o r l o n g - t e r m d e b t o f s u c h c o r p o r a t i o n s , i n s t i t u t i o n s o r a s s o c i a t i o n s i s r a t e d " A A " o r
i t s e q u i v a l e n t b y a N a t i o n a l l y R e c o g n i z e d R a t i n g A g e n c y .
1 4 3 5 2 8 7 4 . 7
1 5
2 7 0
"Permitted Liens" on the Trust Estate and the Toll Road means:
(a) the Liens imposed pursuant to the Master Indenture;
(b) Liens imposed by law for taxes that are not yet due or are being contested
in compliance with Section 15(u);
(c) pledges and deposits made in the ordinary course of business in
compliance with workers' compensation, unemployment insurance, and other social security
laws or regulations;
(d) deposits to secure the performance of bids, trade contracts, leases,
statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like
nature, in each case in the ordinary course of business;
(e) judgment liens in respect of judgments that do not constitute an Event of
Default under Section 18(a)(vi);
(f) easements, zoning restrictions, rights-of-way and similar encumbrances on
real property imposed by law or arising in the ordinary course of business that do not secure any
monetary obligations and do not materially detract from the value of the affected property or
interfere with the ordinary conduct of business of the Borrower;
•
(g) any Lien on any property or asset of the Borrower ex1stmg on the
Effective Date hereof; provided that (i) such Lien shall not apply to any other property or asset of •
the Borrower and (ii) such Lien shall secure only those obligations which it secures on the
Effective Date hereof and extensions, renewals and replacements thereof that do not increase the
outstanding principal amount thereof;
(h) any Lien existing on any property or asset prior to the acquisition thereof
by the Borrower; provided that (i) such Lien is not created in contemplation of or in connection
with such acquisition, (ii) such Lien shall not apply to any other property or assets of the
Borrower and (iii) such Lien shall secure only those obligations which it secures on the date of
such acquisition, and extensions, renewals and replacements thereof that do not increase the
outstanding principal amount thereof; and·
(i) purchase money security interests in equipment acquired on or after the
Effective Date hereof by the Borrower, provided that (i) such security interests secure
indebtedness for borrowed money permitted by Section 15( a), (ii) such security interests are
incurred, and the indebtedness secured thereby is created, within 90 days after such acquisition,
(iii) the indebtedness secured thereby does not exceed the fair market value of such real property,
improvements or equipment at the time of such acquisition and (iv) such security interests do not
apply to any other property or assets (other than accessions to such equipment) of the Borrower.
"Permitted Second Lien Obligations" means (i) any Obligations that are subordinated
in right of payment and lien priority to the Senior Obligations and, senior in right of payment and
lien priority to the Subordinate Obligations (except for the Subordinate Obligation securing the
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T I F I A L o a n , w h i c h u p o n t h e o c c u r r e n c e o f a B a n k r u p t c y R e l a t e d E v e n t s h a l l b e a S e n i o r
O b l i g a t i o n ) , a n d ( i i ) a n y r e l a t e d H e d g i n g O b l i g a t i o n s .
" P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s A c c o u n t " m e a n s t h e A c c o u n t b y t h a t n a m e
c r e a t e d w i t h i n t h e P r o j e c t F u n d p u r s u a n t t o S e c t i o n 5 . 0 2 o f t h e M a s t e r I n d e n t u r e .
" P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s F u n d " m e a n s t h e F u n d b y t h a t n a m e c r e a t e d
p u r s u a n t t o S e c t i o n 5 . 0 2 o f t h e M a s t e r I n d e n t u r e .
" P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s I n t e r e s t A c c o u n t " m e a n s t h e A c c o u n t b y t h a t
n a m e c r e a t e d w i t h i n t h e P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s F u n d p u r s u a n t t o S e c t i o n 5 . 0 2 o f t h e
M a s t e r I n d e n t u r e .
" P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s P r i n c i p a l A c c o u n t " m e a n s t h e A c c o u n t b y t h a t
n a m e c r e a t e d w i t h i n t h e P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s F u n d p u r s u a n t t o S e c t i o n 5 . 0 2 o f t h e
M a s t e r I n d e n t u r e .
" P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s R e s e r v e F u n d " m e a n s t h e A c c o u n t b y t h a t n a m e
c r e a t e d p u r s u a n t t o S e c t i o n 5 . 0 2 o f t h e M a s t e r I n d e n t u r e .
" P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s R e s e r v e F u n d R e q u i r e d B a l a n c e " s h a l l h a v e t h e
m e a n i n g a s s i g n e d t o t h a t t e r m i n a S u p p l e m e n t a l I n d e n t u r e p u r s u a n t t o w h i c h P e r m i t t e d S e c o n d
L i e n O b l i g a t i o n s a r e i n c u r r e d .
" P e r s o n " m e a n s a n y n a t u r a l p e r s o n , f i r m , p a r t n e r s h i p , a s s o c i a t i o n , c o r p o r a t i o n , o r p u b l i c
b o d y .
" P o l i c e S e r v i c e s A g r e e m e n t " m e a n s t h e P o l i c e S e r v i c e s A g r e e m e n t , t o b e e x e c u t e d b y
t h e S t a t e , a c t i n g b y a n d t h r o u g h t h e C a l i f o r n i a H i g h w a y P a t r o l , a n d t h e B o r r o w e r , a s t h e s a m e
m a y b e a m e n d e d , m o d i f i e d a n d s u p p l e m e n t e d i n a c c o r d a n c e w i t h i t s t e r m s .
" P r i n c i p a l P r o j e c t C o n t r a c t s " m e a n s ( a ) t h e D e s i g n - B u i l d C o n t r a c t , a n y c o n t r a c t
e n t e r e d i n t o b y t h e B o r r o w e r r e q u i r e d u n d e r t h e D e s i g n - B u i l d C o n t r a c t , r e q u i r i n g p a y m e n t s b y
t h e B o r r o w e r i n e x c e s s o f $ 2 , 5 0 0 , 0 0 0 ( i n f l a t e d a n n u a l l y b y C P I ) p e r a n n u m , ( b ) t h e O C T A
C o o p e r a t i v e A g r e e m e n t , ( c ) t h e O p e r a t i n g A g r e e m e n t , ( d ) t h e P r o j e c t O v e r s i g h t A g r e e m e n t ( e )
[ t h e A s s i g n m e n t A g r e e m e n t ] , ( f ) t h e S y s t e m I n t e g r a t i o n C o n t r a c t , ( g ) t h e M a s t e r C u s t o d i a l
D e p o s i t o r y A g r e e m e n t , ( h ) t h e P o l i c e S e r v i c e s A g r e e m e n t , ( i ) t h e T o l l F a c i l i t y A g r e e m e n t , G )
t h e O C T A F r a n c h i s e A g r e e m e n t , ( k ) t h e C a l t r a n s D B C o o p e r a t i v e A g r e e m e n t , ( I ) a n y o t h e r
c o n t r a c t e n t e r e d i n t o b y t h e B o r r o w e r r e l a t i n g t o t h e P r o j e c t d e s i g n a t e d a s a P r i n c i p a l P r o j e c t
C o n t r a c t b y t h e T I F I A L e n d e r a n d t h e B o r r o w e r , a n d ( m ) a n y d o c u m e n t t h a t r e p l a c e s o r
s u p p l e m e n t s a n y o f t h e f o r e g o i n g a g r e e m e n t s .
" P r o j e c t " m e a n s t h e e x t e n s i o n o f t h e O C T A S R - 9 1 E x p r e s s L a n e s f r o m t h e O r a n g e
C o u n t y / R i v e r s i d e C o u n t y L i n e a p p r o x i m a t e l y e i g h t ( 8 ) m i l e s t o t h e I - 1 5 / S R - 9 1 I n t e r c h a n g e i n
R i v e r s i d e , C a l i f o r n i a b y c o n s t r u c t i n g o n e g e n e r a l p u r p o s e l a n e i n e a c h d i r e c t i o n f r o m S R -
9 1 / S R - 7 1 i n t e r c h a n g e t o 1 - 1 5 , a n d c o n v e r t i n g t h e e x i s t i n g H i g h O c c u p a n c y V e h i c l e ( H O V ) i n t o a
t o l l e d e x p r e s s l a n e p r o v i d i n g t w o t o l l e d e x p r e s s l a n e s a n d f i v e ( 5 ) g e n e r a l p u r p o s e l a n e s i n e a c h
d i r e c t i o n . T h e P r o j e c t a l s o i n c l u d e s t h e r e s t r i p i n g o f l a n e s i n t h e e a s t b o u n d d i r e c t i o n f o r
1 4 3 5 2 8 7 4 . 7
1 7
2 7 2
approximately 3 miles to the east of the I-15/SR-91 interchange, a two (2) lane direct tolled •
connector approximately 2.8 miles in distance providing SR-91 tolled express lanes
access/egress with I-15 South. This direct tolled connector commences near Grand Avenue on
SR-91, and ends on I-15 South near Ontario Avenue in the City of Corona.
"Project Budget" means the budget for the Project in the aggregate amount of
$ attached to this Agreement as Schedule I showing a summary of all Eligible
Project Costs and the estimated sources and uses of funds for the Project, as amended from time-
to-time with the approval of the TIFIA Lender.
"Project Costs" means (a) the costs paid or incurred (to the extent paid, such costs shall
be reimbursed to the Person who paid such costs) or to be paid or incurred by the Borrower in
connection with or incidental to the acquisition, design, construction and equipping of the
Project, including legal, administrative, engineering, planning, design, insurance and financing
costs, provided such costs were expended no earlier than ; (b) amounts, if
any, required by the Master Indenture to be paid into any fund or account upon the incurrence of
the Senior Obligations; (c) payments when due (whether at the maturity of principal, the due date
of interest, or upon optional or mandatory prepayment) on any indebtedness of the Borrower
(other than the TIFIA Loan) incurred for the Project; (d) costs of equipment and supplies and
initial working capital and reserves required by the Borrower for the commencement of
operation of the Project, including general administrative expenses and overhead of the Borrower
other than to the extent such amounts constitute direct or indirect costs unallowable to the
Borrower and its contractors under 18 C.F .R. Part 31; and (e) the repayment of obligations
incurred by the Borrower, the proceeds of which obligations were used to pay items (a) through •
(d) of this definition.
"Project Fund" means the fund created pursuant to and designated as such in Section
5.02 of the Master Indenture.
"Project Oversight Agreement" means the High Profile Project Oversight Agreement
for the SR-91 Corridor Improvement Project, dated June 28, 2012, by and among the Borrower,
Caltrans and the FHW A California Division Office.
"Qualified Hedge Provider" means an entity, other than any affiliate of the Borrower,
whose senior long term obligations, other senior unsecured long term obligations, financial
program rating, counterparty rating, or claims paying ability, or whose payment obligations
under an interest rate exchange agreement are guaranteed by an entity whose senior long term
debt obligations, other senior unsecured long term obligations, financial program rating,
counterparty rating, or claims paying ability, are rated at the time ofthe execution of the Hedging
Agreement at least as high as the second highest Rating Category of any Nationally Recognized
Rating Agency then maintaining a rating for the Qualified Hedge Provider.
"Rate Covenant" has the meaning set forth in Section 15( o ).
"Rating Category" or "Categories" means one of the generic rating categories of a
Nationally Recognized Rating Agency without regard to any refinement or gradation of such
rating by a numerical modifier or otherwise. •
14352874.7
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"
"
"
' ' R C T C A c t " m e a n s D i v i s i o n 1 2 o f t h e P u b l i c U t i l i t i e s C o d e o f t h e S t a t e o f C a l i f o r n i a
( S e c t i o n 1 3 0 0 0 0 e t s e q ) a s a m e n d e d , i n c l u d i n g b y C h a p t e r 7 1 4 o f t h e C a l i f o r n i a S t a t u t e s o f 2 0 0 8
( S e n a t e B i l l N o . 1 3 1 6 ) , a n d a s s u c h m a y b e a m e n d e d f r o m t i m e t o t i m e h e r e u n d e r .
" R e l a t e d D o c u m e n t s " m e a n s t h e T I F I A L o a n D o c u m e n t s , H e d g i n g A g r e e m e n t s a n d t h e
P r i n c i p a l P r o j e c t C o n t r a c t s .
" R e m e d i a l P l a n " h a s t h e m e a n i n g s e t f o r t h i n S e c t i o n 1 8 ( a ) ( i i i ) .
" R e p a i r a n d R e h a b i l i t a t i o n F u n d " m e a n s t h e F u n d b y t h a t n a m e c r e a t e d p u r s u a n t t o
S e c t i o n 5 . 0 2 o f t h e M a s t e r I n d e n t u r e .
" R e p a i r a n d R e h a b i l i t a t i o n F u n d P e r m i t t e d E x p e n d i t u r e s " m e a n s c a p i t a l
e x p e n d i t u r e s r e a s o n a b l y n e c e s s a r y t o r e p a i r o r r e h a b i l i t a t e t h e R i v e r s i d 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 s o t h a t i t r e m a i n s i n a c o n d i t i o n t h a t m e e t s t h e p e r f o r m a n c e a n d
m a i n t e n a n c e s t a n d a r d s e s t a b l i s h e d b y C a l t r a n s f o r e x i s t i n g S t a t e - o p e r a t e d t r a n s p o r t a t i o n f a c i l i t i e s
o f s u b s t a n t i a l l y e q u i v a l e n t s i z e , l o c a t i o n a n d c h a r a c t e r .
" R e s i d u a l F u n d " m e a n s t h e f u n d b y t h a t n a m e c r e a t e d p u r s u a n t t o a n d d e s i g n a t e d a s
s u c h i n S e c t i o n 5 . 0 2 o f t h e M a s t e r I n d e n t u r e .
" R e q u i s i t i o n " h a s t h e m e a n i n g p r o v i d e d i n S e c t i o n 4 .
" R e v e n u e " m e a n s : ( a ) T o l l R e v e n u e s ; ( b ) a l l i n t e r e s t o r o t h e r i n c o m e f r o m i n v e s t m e n t o f
m o n e y i n t h e f u n d s a n d a c c o u n t s e s t a b l i s h e d h e r e u n d e r ( e x c l u d i n g t h e R e b a t e F u n d a n d a n y f u n d
o r a c c o u n t e s t a b l i s h e d t o h o l d t h e p r o c e e d s o f a d r a w i n g o n a n y C r e d i t S u p p o r t I n s t r u m e n t ) ; a n d
( c ) a l l S w a p R e v e n u e s ; p r o v i d e d t h a t i n n o e v e n t s h a l l " R e v e n u e " i n c l u d e S u b s i d i a r y P a y m e n t s .
" R O W R e v e n u e s " m e a n s r e v e n u e s g e n e r a t e d b y t h e B o r r o w e r f r o m t h e s a l e o f e x c e s s
r i g h t - o f - w a y p r o p e r t y .
" S a l e s T a x A c t " m e a n s t h e R i v e r s i d e C o u n t y T r a n s p o r t a t i o n S a l e s T a x A c t , 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 . ) .
" S a l e s T a x B o n d s " m e a n s t h e b o n d s o f t h e B o r r o w e r i s s u e d p u r s u a n t t o , a n d o u t s t a n d i n g
u n d e r , t h e S a l e s T a x R e v e n u e B o n d I n d e n t u r e .
" S a l e s T a x R e v e n u e B o n d I n d e n t u r e " m e a n s t h a t c e r t a i 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 , 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 a n d b e t w e e n t h e B o r r o w e r 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 .
" S a l e s T a x R e v e n u e s " m e a n s t h e a m o u n t s a v a i l a b l e f o r d i s t r i b u t i o n t o t h e B o r r o w e r o n
a n d a f t e r J u l y 1 , 2 0 0 9 o n a c c o u n t o f t h e r e t a i l t r a n s a c t i o n s a n d u s e t a x i m p o s e d i n t h e C o u n t y o f
R i v e r s i d e p u r s u a n t t o t h e S a l e s T a x A c t a n d t h e O r d i n a n c e a f t e r d e d u c t i n g a m o u n t s p a y a b l e b y
t h e B o r r o w e r t o t h e S t a t e B o a r d o f E q u a l i z a t i o n f o r c o s t s a n d e x p e n s e s f o r i t s s e r v i c e s m
c o n n e c t i o n w i t h t h e r e t a i l t r a n s a c t i o n s a n d u s e t a x e s c o l l e c t e d p u r s u a n t t o t h e S a l e s T a x A c t .
1 4 3 5 2 8 7 4 . 7
1 9
2 7 4
"Scheduled Repair and Rehabilitation Fund Required Deposit" means for each
Borrower Fiscal Year, the amount of Repair and Rehabilitation Permitted Expenditures set forth •
for such Borrower Fiscal Year in Exhibit_ [hereto][to the Master Indenture].
"Second Supplemental Indenture" means the Second Supplemental Indenture, by and
between the Borrower and the Trustee, dated as of June 1, 2013, relating to the Riverside County
Transportation Commission Subordinate Toll Revenue Bonds, 2013 TIFIA Series.
"Secretary" means the United States Secretary ofTransportation.
"Semi-Annual Payment Date" means each June 1 and December 1 or if such day is not
a Business Day, then the Business Day immediately following such June 1 or December 1.
"Senior Lien Bonds" means Bonds issued pursuant to Section 3.01 and 3.02 of the
Master Indenture.
"Senior Lien Bond Fund" means the fund by that name created pursuant to and
designated as such in Section 5.02 of the Master Indenture.
"Senior Lien Bond Reserve Fund" means the fund created pursuant to and designated
as such in Section 5.02 of the Master Indenture.
"Senior Lien Bond Reserve Requirement" for any Senior Lien Bonds, means, as of
any date of calculation, the amount specified by a Supplemental Indenture as the amount
required to be held in the Senior Lien Bond Reserve Fund for the payment of principal of and •
interest on those Senior Lien Bonds.
"Senior Lien Bond Fund" means the fund by that name created pursuant to and
designated as such in Section 5.02 of the Master Indenture.
"Senior Lien Bond Reserve Fund" means the fund created pursuant to and designated
as such in Section 5.02 of the Master Indenture.
"Senior Lien Bond Reserve Requirement" [for any Senior Lien Bonds, means, as of
any date of calculation, the amount specified by a Supplemental indenture as the amount
required to be held in the Senior Lien Bond Reserve Fund for the payment of principal of and
interest on those Senior Lien Bonds.]
"Senior Obligations" means collectively, Senior Lien Bonds and Parity Obligations
issued under the Master Indenture and, upon the occurrence of a Bankruptcy Related Event,
Subordinate Obligations in the form of or securing payment of a TIFIA Loan.
"Servicer" means such entity or entities as the TIFIA Lender shall designate from time-
to-time to perform, or assist the TIFIA Lender in performing, certain duties hereunder.
"Short-Term Qualified Hedge" has the meaning set forth in Section 18(s)(vii)(A) .
"State" means the State of California.
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" S u b o r d i n a t e O b l i g a t i o n s " m e a n s a n y O b l i g a t i o n s t h a t a r e s u b o r d i n a t e d i n r i g h t o f
p a y m e n t a n d l i e n p r i o r i t y t o t h e S e n i o r O b l i g a t i o n s a n d t h e P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s ,
i n c l u d i n g a n y S u b o r d i n a t e O b l i g a t i o n s i n t h e f o r m o f o r s e c u r i n g p a y m e n t o f a T I F I A L o a n p r i o r
t o t h e o c c u r r e n c e o f a B a n k r u p t c y R e l a t e d E v e n t .
" S u b o r d i n a t e O b l i g a t i o n s A c c o u n t " m e a n s t h e A c c o u n t b y t h a t n a m e c r e a t e d w i t h i n t h e
P r o j e c t F u n d p u r s u a n t t o S e c t i o n 5 . 0 2 o f t h e M a s t e r I n d e n t u r e .
" S u b o r d i n a t e O b l i g a t i o n s P a y m e n t F u n d " m e a n s t h e F u n d b y t h a t n a m e c r e a t e d
p u r s u a n t t o S e c t i o n 5 . 0 2 o f t h e M a s t e r I n d e n t u r e .
" S u b o r d i n a t e O b l i g a t i o n s P r e p a y m e n t A c c o u n t " m e a n s t h e A c c o u n t b y t h a t n a m e
c r e a t e d p u r s u a n t t o S e c t i o n 5 . 0 2 o f t h e M a s t e r I n d e n t u r e .
" S u b o r d i n a t e O b l i g a t i o n s R e s e r v e F u n d " m e a n s t h e F u n d b y t h a t n a m e c r e a t e d
p u r s u a n t t o S e c t i o n 5 . 0 2 o f t h e M a s t e r I n d e n t u r e .
" S u b o r d i n a t e O b l i g a t i o n s R e s e r v e F u n d R e q u i r e d B a l a n c e " m e a n s t w e n t y m i l l i o n
d o l l a r s ( $ 2 0 , 0 0 0 , 0 0 0 ) .
[ " S u b o r d i n a t e d H e d g i n g T e r m i n a t i o n O b l i g a t i o n s " m e a n s H e d g i n g T e r m i n a t i o n
O b l i g a t i o n s u n d e r t h e H e d g i n g A g r e e m e n t s o t h e r t h a n t h o s e a r i s i n g a s a r e s u l t o f a P e r m i t t e d
H e d g i n g T e r m i n a t i o n o r a s a r e s u l t o f a t a x o r i l l e g a l i t y e v e n t o r u p o n f a i l u r e o f t h e B o r r o w e r t o
p a y a n y H e d g i n g O b l i g a t i o n s w h e n d u e . ]
" S u b s e q u e n t Q u a l i f i e d H e d g e " h a s t h e m e a n i n g s e t f o r t h e i n S e c t i o n 1 5 ( 5 ) ( i i i ) .
" S u b s i d y P a y m e n t s " m e a n s , ( a ) w i t h r e s p e c t t o a S e r i e s o f O b l i g a t i o n s i s s u e d u n d e r
S e c t i o n 5 4 A A o f t h e C o d e , t h e a m o u n t s r e l a t i n g t o s u c h S e r i e s o f O b l i g a t i o n s w h i c h a r e p a y a b l e
b y t h e F e d e r a l g o v e r n m e n t u n d e r S e c t i o n 6 4 3 1 o f t h e C o d e , w h i c h t h e B o r r o w e r h a s e l e c t e d t o
r e c e i v e u n d e r S e c t i o n 5 4 A A ( g ) ( l ) o f t h e C o d e , a n d ( b ) w i t h r e s p e c t t o a S e r i e s o f O b l i g a t i o n s
i s s u e d u n d e r a n y o t h e r p r o v i s i o n o f t h e C o d e t h a t c r e a t e s a s u b s t a n t i a l l y s i m i l a r d i r e c t - p a y
s u b s i d y p r o g r a m , t h e a m o u n t s r e l a t i n g t o s u c h S e r i e s o f O b l i g a t i o n s w h i c h a r e p a y a b l e b y t h e
F e d e r a l g o v e r n m e n t u n d e r t h e a p p l i c a b l e p r o v i s i o n o f t h e C o d e w h i c h t h e B o r r o w e r h a s e l e c t e d
t o r e c e i v e u n d e r t h e a p p l i c a b l e p r o v i s i o n s o f t h e C o d e .
" S u b s t a n t i a l C o m p l e t i o n " m e a n s t h e o p e n i n g o f t h e P r o j e c t i n i t s e n t i r e t y t o v e h i c u l a r
t r a f f i c .
" S u b s t a n t i a l C o m p l e t i o n D a t e " m e a n s t h e d a t e o n w h i c h t h e P r o j e c t i s o p e n i n i t s
e n t i r e t y t o v e h i c u l a r t r a f f i c , a s s p e c i f i e d i n t h e B a s e C a s e P r o j e c t i o n s , a s s u c h d a t e m a y b e
r e v i s e d a s r e f l e c t e d i n a F i n a n c i a l P l a n p u r s u a n t t o c l a u s e ( i i ) o f S e c t i o n 2 0 ( a ) h e r e o f .
" S u p p l e m e n t a l I n d e n t u r e " m e a n s a n y r e s o l u t i o n , a g r e e m e n t o r s i m i l a r d o c u m e n t w h i c h
s u p p l e m e n t s o r a m e n d s t h e M a s t e r I n d e n t u r e .
" S u r p l u s F u n d " m e a n s t h e f u n d c r e a t e d p u r s u a n t t o a n d d e s i g n a t e d a s s u c h i n S e c t i o n
5 . 0 2 o f t h e M a s t e r I n d e n t u r e .
1 4 3 5 2 8 7 4 . 7
2 1
2 7 6
"Swap Revenues" means any amount paid by a Hedging Bank to the Borrower pursuant
to any Hedging Agreement, after any netting of payments required by such Hedging Agreement •
and any payments paid to the Borrower by a Hedging Bank as consideration for termination or
amendment of a Hedging Agreement.
"System Integration Contract" means any agreement entered into by the Borrower
relating to the electronic toll collection system operations on the Toll Road.
"TIFIA Bond" means the Bond in substantially the form of Exhibit A issued by the
Borrower to the TIFIA Lender pursuant to the Second Supplemental Indenture to evidence the
payment obligations of the Borrower on the TIFIA Loan.
"TIFIA Debt Service" means collectively, TIFIA Mandatory Debt Service and TIFIA
Scheduled Debt Service.
"TIFIA Default Rate" means an interest rate of 200 basis points above the TIFIA
Interest Rate.
"TIFIA Interest Rate" has the meaning set forth in Section 6.
"TIFIA Lender" means USDOT, acting by and through the Administrator, and its
successors and assigns.
"TIFIA Lender's Authorized Representative" means any Person who shall be
designated as such by the Administrator pursuant to Section 25. •
"TIFIA Loan" means the secured loan made by the TIFIA Lender to the Borrower
hereunder, pursuant to the Act, in a principal amount not to exceed [$451 ,000,000] (excluding
capitalized interest), to be used to pay Eligible Project Costs of this Agreement.
"TIFIA Loan Documents" means this Agreement, the TIFIA Bond, the Master
Indenture and the Second Supplemental Indenture.
"TIFIA Loan Prepayment Amount" has the meaning assigned to such term in Section
18( q) of this Agreement.
"TIFIA Loan Prepayment Commencement Date" means the first' Monthly Funding
Date occurring after the Debt Service Payment Commencement Date on which a TIFIA Loan
Prepayment Amount is require to be paid to the TIFIA Lender pursuant to Section 15 ( q) of this
Agreement.
"TIFIA Mandatory Debt Service" means with respect to any Payment Date occurring
(a) after the Debt Service Payment Commencement Date and prior to the Fixed Amortization
Payment Commencement Date, the principal and/or interest required to be paid on the TIFIA
Loan on such Payment Date as shown on Exhibits G and H in accordance with the provisions of
Section 9( c )(i) and (b) on and after the Fixed Amortization Payment Commencement Date, the
Fixed Amortization Payments required to be paid on the TIFIA Loan on such Payment Date as •
shown on Exhibits G and H in accordance with the provisions of Section 9(c)(ii).
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" T I F I A P r o R a t a S h a r e " m e a n s o n a r e l e v a n t d a t e o f d i s b u r s e m e n t , [ ] % o f t h e
a g g r e g a t e a m o u n t f r o m t h e P r o j e c t F u n d t o p a y E l i g i b l e P r o j e c t C o s t s u n d e r t h e M a s t e r
I n d e n t u r e . [ o f d i s b u r s e m e n t s ]
" T I F I A S c h e d u l e d D e b t S e r v i c e " m e a n s w i t h r e s p e c t t o a n y 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 e b t S e r v i c e P a y m e n t C o m m e n c e m e n t D a t e a n d p r i o r t o t h e F i x e d A m o r t i z a t i o n
P a y m e n t C o m m e n c e m e n t D a t e , t h e i n t e r e s t s c h e d u l e d t o b e p a i d o n t h e T I F I A L o a n o n s u c h
P a y m e n t D a t e a s s h o w i n g o n E x h i b i t s G a n d H i n a c c o r d a n c e w i t h t h e p r o v i s i o n s o f S e c t i o n
9 ( d ) .
" T o l l F a c i l i t y A g r e e m e n t " m e a n s t h a t T o l l F a c i l i t y A g r e e m e n t , d a t e d a s o f M a y 1 4 ,
2 0 1 2 , b y a n d b e t w e e n t h e B o r r o w e r a n d C a l t r a n s , a s t h e s a m e m a y b e a m e n d e d a n d
s u p p l e m e n t e d .
" T o l l O p e r a t o r " m e a n s C o f i r o u t e , o r a n y s u c c e s s o r , a s o p e r a t o r o f t h e T o l l R o a d
r e s p o n s i b l e f o r t h e c o l l e c t i o n o f t o l l s a n d f e e s a n d t h e e s t a b l i s h m e n t a n d m a i n t e n a n c e o f
c u s t o m e r a c c o u n t s a n d r e c o r d s , p u r s u a n t t o t h e O p e r a t i n g A g r e e m e n t .
" T o l l R e v e n u e F u n d " m e a n s t h e f u n d c r e a t e d p u r s u a n t t o a n d d e s i g n a t e d a s s u c h i n
S e c t i o n 5 . 0 2 o f t h e M a s t e r I n d e n t u r e .
" T o l l R e v e n u e s " m e a n s ( a ) t o l l r e v e n u e s , u s e r f e e s , f i n e s , r e n t s o r o t h e r s i m i l a r c h a r g e s
p a y a b l e f o r u s e o f t h e T o l l R o a d , a s w e l l a s f i n e s a n d p e n a l t i e s a n d i n t e r e s t t h e r e o n c o l l e c t e d a s a
r e s u l t o f a f a i l u r e t o p a y a n y s u c h a m o u n t s , ( b ) p r o c e e d s o f i n s u r a n c e p a y a b l e t o o r r e c e i v e d b y
t h e B o r r o w e r w i t h r e s p e c t t o t h e T o l l R o a d ( w h e t h e r b y w a y o f c l a i m s , r e t u r n o f p r e m i u m s , e x
g r a t i a s e t t l e m e n t s o r o t h e r w i s e ) , i n c l u d i n g p r o c e e d s f r o m b u s i n e s s i n t e r r u p t i o n i n s u r a n c e a n d
l o s s o f a d v a n c e p r o f i t s i n s u r a n c e , e x c e p t f o r p r o c e e d s o f f i r e a n d o t h e r c a s u a l t y i n s u r a n c e t h a t a r e
a c t u a l l y a p p l i e d o r r e s e r v e d f o r a p p l i c a t i o n t o t h e r e p a i r , r e s t o r a t i o n o r r e p l a c e m e n t o f t h e T o l l
R o a d , ( c ) p r o c e e d s o f a n y c o n d e m n a t i o n a w a r d s w i t h r e s p e c t t o t h e T o l l R o a d , e x c e p t t o t h e
e x t e n t a c t u a l l y a p p l i e d o r r e s e r v e d f o r a p p l i c a t i o n t o t h e r e p l a c e m e n t o f t h e T o l l R o a d ,
( d ) l i q u i d a t e d d a m a g e s f o r d e l a y e d c o m p l e t i o n p a y a b l e t o t h e B o r r o w e r u n d e r a c o n s t r u c t i o n
c o n t r a c t r e l a t i n g t o t h e T o l l R o a d o r a p o r t i o n t h e r e o f , e x c e p t f o r t h e p o r t i o n o f s u c h l i q u i d a t e d
d a m a g e s t h a t i s d e p o s i t e d t o t h e P r o j e c t F u n d o r a n A c c o u n t t h e r e i n a n d a p p l i e d o r r e s e r v e d f o r
p a y m e n t o f P r o j e c t C o s t s r e l a t i n g t o t h e T o l l R o a d o r s u c h p o r t i o n d u r i n g s u c h p e r i o d o f d e l a y e d
c o m p l e t i o n , ( e ) p r o c e e d s o f c r e d i t s u p p o r t p r o v i d e d b y t h e T o l l O p e r a t o r p u r s u a n t t o t h e
O p e r a t i n g A g r e e m e n t , a n d ( f ) a n y o t h e r i n c i d e n t a l o r r e l a t e d f e e s o r c h a r g e s ; b u t e x c l u d i n g
t h e r e f r o m R O W R e v e n u e s a n d c a s h a d v a n c e s r e p r e s e n t i n g d e p o s i t s a g a i n s t f u t u r e t o l l p a y m e n t s
f r o m u s e r s o r p o t e n t i a l u s e r s o f t h e T o l l R o a d .
" T o l l R o a d " m e a n s a n y o f t h e � f o l l o w i n g : ( a ) g e n e r a l p u r p o s e t o l l l a n e s , ( b ) l a n e s o r
f a c i l i t i e s w h e r e t h e t o l l s m a y b e l e v i e d a n d m a y v a r y a c c o r d i n g t o l e v e l s o f c o n g e s t i o n
a n t i c i p a t e d o r e x p e r i e n c e d o r a c c o r d i n g t o t h e o c c u p a n c y o f t h e v e h i c l e , ( c ) f a c i l i t i e s u s i n g a n y
c o m b i n a t i o n o f ( a ) a n d ( b ) , a n d ( d ) f a c i l i t i e s u s i n g a n y o t h e r t o l l i n g s t r a t e g y t h e B o r r o w e r m a y
d e t e r m i n e a p p r o p r i a t e o n a f a c i l i t y - b y - f a c i l i t y b a s i s , u p o n w h i c h t h e B o r r o w e r h a s a l l r i g h t ,
p o w e r a n d a u t h o r i t y p u r s u a n t t o l a w t o i m p o s e t o l l s , a s s u c h t o l l l a n e s a n d f a c i l i t i e s m a y f r o m
t i m e t o t i m e b e e x p a n d e d , i m p r o v e d , u p g r a d e d , e n l a r g e d , o r e n h a n c e d , b u t o n l y t o t h e e x t e n t t h a t
( i ) t h e B o r r o w e r i r r e v o c a b l y d e s i g n a t e s i n w r i t i n g � t h a t s u c h t o l l l a n e s a n d f a c i l i t i e s , a n d a n y
1 4 3 5 2 8 7 4 . 7
2 3
2 7 8
expansion, improvement, upgrade, enlargement or enhancement constitutes a "Toll Road"
generating Toll Revenues hereunder and (ii) that (x) the additional Operation and Maintenance •
Costs associated with any such expansion, improvement, upgrade, enlargement or enhancement
and (y) any additional Obligations issued to finance the. costs of any such expansion,
improvement, upgrade, enlargement or enhancement shall not result in debt service coverage
ratios of the Subordinate Obligations lower than those stated in the Base Case Model delivered
on the Effective Date. "Toll Road" shall not include any Special Project (as such term is defined
in the Master Indenture). Initially, "Toll Road" initially means any such toll lanes and facilities
(including structures, on-ramps, connector roads, bridges, and roadways that are on, necessary
for, or related to the construction or operation of the Toll Road) on the portion ofSR-91 between
the Orange and Riverside County line and Interstate 15 that constitute a part of the Riverside SR-
91 Corridor Improvement Project.
"Traffic Consultant" means initially, Stantec Consulting Services, and any replacement
or successor traffic and revenue consultant or firm of traffic and revenue consultants of national
recognition with expertise and experience regarding the operation, management and financing of,
and the collection of revenues from toll roads, selected and employed by the Borrower from time
to time and reasonably acceptable to the TIFIA Lender.
"Traffic and Revenue Study" means the Final Traffic and Revenue Study for the
Project, dated [July, 20 _], prepared for the Borrower by Stantec Consulting Services, and any
amendments, supplements or updates thereto.
"Trust Estate" means all rights, title, interest and privileges of the Borrower in, to and
under (i) the Toll Revenues, (ii) all interest or other income from investment of money in the
Funds and Accounts established under the Master Indenture (excluding the Rebate Fund, the
Surplus Fund and any Fund or Account established to hold the proceeds of a drawing on any
Credit Support Instrument), (iii) all Swap Revenues, and (iv) all amounts (including the proceeds
of Obligations) held by the Trustee in each Fund and Account established under the Master
Indenture (except for amounts on deposit in the Rebate Fund, the Surplus Fund and amounts on
deposit in any Fund or Account established to hold the proceeds of a drawing on any Credit
Support Instrument).
"Trustee" means The Bank of New York Mellon Trust Company, N.A. and any
successor thereto designated pursuant to the Master Indenture.
"Uncontrollable Force" means any cause beyond the control ofthe Borrower, including
but not limited to: (a) a tornado, flood or similar occurrence, landslide, earthquake, fire or other
casualty, strike or labor disturbance, freight embargo, act of a public enemy, explosion, war,
blockade, terrorist act, insurrection, riot, general arrest or restraint of government and people,
civil disturbance or similar occurrence, or sabotage; or act of God provided that the Borrower
shall not be required to settle any strike or labor disturbance in which it may be involved or
(b) the order or judgment of any federal, state or local court, administrative agency or
governmental officer or body, if it is not also the result of willful or negligent action or a lack of
reasonable diligence of the Borrower and the Borrower does not control the administrative
agency or governmental officer or body; provided that the diligent contest in good faith of any
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s u c h o r d e r o r j u d g m e n t s h a l l n o t c o n s t i t u t e o r b e c o n s t r u e d a s a w i l l f u l o r n e g l i g e n t a c t i o n o r a
l a c k o f r e a s o n a b l e d i l i g e n c e o f t h e B o r r o w e r .
" U S D O T " m e a n s t h e U n i t e d S t a t e 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 .
" V a r i a b l e I n t e r e s t R a t e O b l i g a t i o n s " m e a n s a n y O b l i g a t i o n s t h a t a c c r u e i n t e r e s t a t a
v a r i a b l e i n t e r e s t r a t e .
" W r i t t e n E n g i n e e r ' s C e r t i f i c a t e " m e a n s a n i n s t r u m e n t i n w r i t i n g s i g n e d b y a
C o n s u l t i n g E n g i n e e r s t a t i n g t h a t t h e A l t e r n a t e R e p a i r a n d R e h a b i l i t a t i o n F u n d R e q u i r e d D e p o s i t
i s n e c e s s a r y t o p a y f o r R e p a i r a n d R e h a b i l i t a t i o n P e r m i t t e d E x p e n d i t u r e s f o r a F i s c a l Y e a r d u e t o
a t l e a s t o n e o f t h e f o l l o w i n g : ( i ) r e a s o n a b l y u n f o r e s e e n e x p e n d i t u r e s t o t h e e x t e n t n e c e s s a r y t o
p a y f o r c o m p l i a n c e w i t h e m e r g e n c y e x p e n s e s ; o r ( i i ) r e a s o n a b l y u n f o r e s e e n e x p e n d i t u r e s t o t h e
e x t e n t n e c e s s a r y t o b e m a d e t o m a i n t a i n t h e R i v e r s i d e S R - 9 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 i n a
s t a t e o f g o o d r e p a i r a n d i n a c o n d i t i o n t h a t m e e t s t h e p e r f o r m a n c e a n d m a i n t e n a n c e s t a n d a r d s
e s t a b l i s h e d b y C a l t r a n s f o r e x i s t i n g S t a t e - o p e r a t e d t r a n s p o r t a t i o n f a c i l i t i e s o f s u b s t a n t i a l l y
e q u i v a l e n t s i z e , l o c a t i o n a n d c h a r a c t e r .
S E C T I O N 2 . I n t e r p r e t a t i o n . 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 r e q u i r e , t h e w o r d s
" h e r e t o , " " h e r e i n , " " h e r e o f ' a n d o t h e r w o r d s o f s i m i l a r i m p o r t r e f e r t o t h i s A g r e e m e n t a s a
w h o l e . 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 a n d v i c e v e r s a . 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 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 r e q u i r e . T h e
w o r d s " i n c l u d e , " " i n c l u d e s " a n d " i n c l u d i n g " s h a l l b e d e e m e d t o b e f o l l o w e d b y t h e p h r a s e
" w i t h o u t l i m i t a t i o n . " 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 r e q u i r e , r e f e r e n c e s t o a n y P e r s o n s h a l l
b e d e e m e d t o i n c l u d e s u c h P e r s o n ' s s u c c e s s o r s a n d p e r m i t t e d a s s i g n 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 r e q u i r e , r e f e r e n c e s t o s e c t i o n s , s u b s e c t i o n s , a n d p r o v i s i o n s a r e t o t h e a p p l i c a b l e
s e c t i o n s , s u b s e c t i o n s a n d p r o v i s i o n s o f t h i s A g r e e m e n t . T h e h e a d i n g s o r t i t l e s o f t h i s A g r e e m e n t
a n d i t s s e c t i o n s , s c h e d u l e s o r e x h i b i t s , a s w e l l a s a n y t a b l e o f c o n t e n t s , a r e f o r c o n v e n i e n c e o f
r e f e r e n c e o n l y a n d s h a l l n o t d e f i n e o r l i m i t i t s p r o v i s i o n 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
r e q u i r e , a l l r e f e r e n c e s t o a n y r e s o l u t i o n , c o n t r a c t , a g r e e m e n t , l e a s e o r o t h e r d o c u m e n t s h a l l b e
d e e m e d t o i n c l u d e a n y a m e n d m e n t s o r s u p p l e m e n t s t o , o r m o d i f i c a t i o n s o r r e s t a t e m e n t s o r
r e p l a c e m e n t s o f , s u c h d o c u m e n t s t h a t a r e a p p r o v e d f r o m t i m e - t o - t i m e i n a c c o r d a n c e w i t h t h e
t e r m s t h e r e o f a n d h e r e o f . E v e r y r e q u e s t , o r d e r , d e m a n d , a p p l i c a t i o n , a p p o i n t m e n t , n o t i c e ,
s t a t e m e n t , c e r t i f i c a t e , c o n s e n t o r s i m i l a r c o m m u n i c a t i o n o r a c t i o n h e r e u n d e r b y a n y p a r t y s h a l l ,
u n l e s s o t h e r w i s e s p e c i f i c a l l y p r o v i d e d , b e d e l i v e r e d i n w r i t i n g i n a c c o r d a n c e w i t h S e c t i o n 3 5 a n d
s i g n e d b y a d u l y a u t h o r i z e d r e p r e s e n t a t i v e o f s u c h p a r t y .
S E C T I O N 3 . T I F I A L o a n A m o u n t .
S E C T I O N 4 . T h e p r i n c i p a l a m o u n t o f t h e T I F I A L o a n s h a l l n o t e x c e e d [ $ 4 5 1 , 0 0 0 , 0 0 0 ]
( e x c l u d i n g a n y i n t e r e s t t h a t i s c a p i t a l i z e d i n a c c o r d a n c e w i t h t h e t e r m s h e r e o f ) ; p r o v i d e d ,
h o w e v e r , i n n o e v e n t s h a l l t h e m a x i m u m p r i n c i p a l a m o u n t o f t h e T I F I A L o a n d i s b u r s e d b y t h e
T I F I A L e n d e r , t o g e t h e r w i t h t h e a m o u n t o f a n y o t h e r c r e d i t a s s i s t a n c e p r o v i d e d u n d e r t h e A c t ,
e x c e e d t h e l e s s e r o f ( i ) 3 3 % o f E l i g i b l e P r o j e c t C o s t s , e x c l u d i n g a n y i n t e r e s t t h a t i s c a p i t a l i z e d i n
a c c o r d a n c e w i t h t h e t e r m s h e r e o f , o r ( i i ) i f t h e T I F I A L o a n d o e s n o t r e c e i v e a n I n v e s t m e n t G r a d e
1 4 3 5 2 8 7 4 . 7
2 5
2 8 0
Rating, the amount of the Initial Senior Obligations. TIFIA Loan proceeds shall be disbursed
from time-to-time in accordance with Section 4. •
SECTION 5. Disbursement Conditions.
(a) TIFIA Loan proceeds shall be disbursed solely to pay directly for, or to
reimburse the Borrower for its prior payment of, Eligible Project Costs incurred in connection
with the Project. Each disbursement of the TIFIA Loan shall be made pursuant to a requisition
and certification (a "Requisition") in the form set forth in Appendix One to Exhibit D submitted
by the Borrower to, and approved by, the TIFIA Lender, all in accordance with the procedures of
Exhibit D and subject to the conditions set forth therein and the additional conditions set forth
below in this Section 4. Disbursements of TIFIA Loan proceeds shall be made no later than one
year after the Substantial Completion Date. As a condition to each disbursement of the TIFIA
Loan, the Borrower shall provide to the TIFIA Lender a Disbursements and Contributions
Certificate.
(b) Copies of each Requisition, each of which shall be accompanied by a
Disbursement and Contributions Certificate, shall be delivered to the TIFIA Lender, the FHW A
TIFIA Joint Program Office, any Servicer and the FHW A California Division Office on or
before the 15th day of the month preceding such month for which a disbursement is requested, or
the next succeeding Business Day if such 15th day is not a Business Day. If the TIFIA Lender
shall expressly approve a Requisition or shall not expressly deny a Requisition, disbursements of
funds shall be made on the 1st day of the month for which a disbursement has been requested, or
on the next succeeding Business Day if such 1st day is not a Business Day. Express TIFIA •
Lender approval or denial shall be substantially in the form attached hereto as Appendix Three to
Exhibit D. In no event shall disbursements be made more than once each month. At the time of
any disbursement, the sum of all prior disbursements of TIFIA Loan proceeds and the
disbursement then to be made shall not exceed the cumulative disbursements through the end of
the then-current year set forth in the Anticipated TIFIA Loan Disbursement Schedule, as
amended from time-to-time pursuant to paragraph (c) in this Section.
(c) The Borrower may amend the Anticipated TIFIA Loan Disbursement
Schedule by submitting revisions to the TIFIA Lender no later than thirty days prior to the
proposed effective date thereof, a revised Schedule, together with a detailed explanation of the
reasons for such revisions. Such revised Schedule shall become effective upon the TIFIA
Lender's approval thereof, which approval shall not be unreasonably withheld.
(d) As conditions to the initial disbursement of the TIFIA Loan, the Borrower
shall provide the TIFIA Lender with evidence satisfactory to the TIFIA Lender that prior thereto,
or simultaneously therewith, (i) the Initial Senior Obligations and the Sales Tax Bonds were
issued by the Borrower no later than June_, 2013, and (ii) the State's approved transportation
improvement program and approved statewide transportation improvement program pursuant to
23 U.S.C.§§134 and 135 have been amended to reflect all funding sources for the Project,
including the TIFIA Loan. ·
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S E C T I O N 6 . T e r m . T h e t e r m o f t h e T I F I A L o a n s h a l l e x t e n d f r o m t h e E f f e c t i v e D a t e
t o t h e F i n a l M a t u r i t y D a t e o r t o s u c h e a r l i e r o r l a t e r d a t e a s a l l a m o u n t s d u e o r t o b e c o m e d u e t o
t h e T I F I A L e n d e r h e r e u n d e r h a v e b e e n p a i d .
S E C T I O N 7 . I n t e r e s t R a t e . T h e i n t e r e s t r a t e w i t h r e s p e c t t o t h e T I F I A L o a n ( t h e
" T I F I A I n t e r e s t R a t e " ) s h a l l b e _ _ % p e r a n n u m . I n t e r e s t w i l l b e c o m p u t e d o n t h e O u t s t a n d i n g
T I F I A L o a n B a l a n c e ( a s w e l l a s o n a n y p a s t d u e i n t e r e s t ) f r o m t i m e - t o - t i m e o n t h e b a s i s o f a
3 6 5 - d a y o r 3 6 6 - d a y y e a r , a s a p p r o p r i a t e , f o r t h e a c t u a l n u m b e r o f d a y s e l a p s e d a n d w i l l b e
c o m p o u n d e d s e m i - a n n u a l l y ; p r o v i d e d , h o w e v e r , i n t h e e v e n t o f a P a y m e n t D e f a u l t , t h e B o r r o w e r
s h a l l p a y i n t e r e s t o n a n y o v e r d u e a m o u n t f r o m i t s d u e d a t e t o t h e d a t e o f a c t u a l p a y m e n t a t t h e
T I F I A D e f a u l t R a t e . U p o n t h e o c c u r r e n c e o f a n E v e n t o f D e f a u l t d e s c r i b e d i n
S e c t i o n s 1 8 ( a ) ( i i i ) o r ( i x ) h e r e o f , t h e i n t e r e s t r a t e o n t h e O u t s t a n d i n g T I F I A L o a n B a l a n c e s h a l l
b e t h e T I F I A D e f a u l t R a t e a n d s h a l l c o n t i n u e t o b e a r i n t e r e s t a t s u c h r a t e u n t i l , w i t h r e s p e c t t o
( a ) a n E v e n t o f D e f a u l t d e s c r i b e d i n S e c t i o n 1 8 ( a ) ( i i i ) , t h e D e v e l o p m e n t D e f a u l t h a s b e e n c u r e d
a n d ( b ) a n E v e n t o f D e f a u l t d e s c r i b e d i n S e c t i o n 1 8 ( a ) ( v i i i ) , t h e T I F I A L o a n h a s b e e n p a i d i n
f u l l .
S E C T I O N 8 . O u t s t a n d i n g T I F I A L o a n B a l a n c e a n d R e v i s i o n s t o E x h i b i t G a n d t h e
L o a n A m o r t i z a t i o n S c h e d u l e .
( a ) T h e O u t s t a n d i n g T I F I A L o a n B a l a n c e w i l l b e ( i ) i n c r e a s e d o n e a c h
o c c a s i o n o n w h i c h t h e T I F I A L e n d e r s h a l l d i s b u r s e l o a n p r o c e e d s h e r e u n d e r , b y t h e a m o u n t o f
s u c h d i s b u r s e m e n t o f l o a n p r o c e e d s , ( i i ) i n c r e a s e d o n e a c h o c c a s i o n o n w h i c h i n t e r e s t o n t h e
T I F I A L o a n i s c a p i t a l i z 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 9 h e r e o f , b y t h e a m o u n t o f
i n t e r e s t s o c a p i t a l i z e d a n d ( i i i ) d e c r e a s e d u p o n e a c h p a y m e n t o r p r e p a y m e n t o f t h e p r i n c i p a l
a m o u n t o f t h e T I F I A L o a n , b y t h e a m o u n t o f p r i n c i p a l s o p a i d . T h e T I F I A L e n d e r m a y i n i t s
d i s c r e t i o n a t a n y t i m e a n d f r o m t i m e - t o - t i m e , o r w h e n s o r e q u e s t e d b y t h e B o r r o w e r , a d v i s e t h e
B o r r o w e r b y w r i t t e n n o t i c e o f t h e a m o u n t o f t h e O u t s t a n d i n g T I F I A L o a n B a l a n c e a s o f t h e d a t e
o f s u c h n o t i c e , a n d i t s d e t e r m i n a t i o n o f s u c h a m o u n t i n a n y s u c h n o t i c e s h a l l b e d e e m e d
c o n c l u s i v e a b s e n t m a n i f e s t e r r o r . U p o n a n y d e t e r m i n a t i o n o f t h e O u t s t a n d i n g T I F I A L o a n
B a l a n c e , t h e T I F I A L e n d e r m a y , b u t s h a l l n o t b e o b l i g a t e d t o , m a k e a p p l i c a b l e r e v i s i o n s t o
E x h i b i t G a n d t h e L o a n A m o r t i z a t i o n S c h e d u l e p u r s u a n t t o S e c t i o n 9 a n d i n s u c h e v e n t s h a l l
p r o v i d e t h e B o r r o w e r w i t h a c o p y o f s u c h E x h i b i t G a n d L o a n A m o r t i z a t i o n S c h e d u l e a s r e v i s e d ,
b u t n o f a i l u r e t o p r o v i d e o r d e l a y i n p r o v i d i n g t h e B o r r o w e r w i t h s u c h c o p y s h a l l a f f e c t a n y o f
t h e o b l i g a t i o n s o f t h e B o r r o w e r u n d e r t h i s A g r e e m e n t o r t h e o t h e r T I F I A L o a n D o c u m e n t s . T h e
L o a n A m o r t i z a t i o n S c h e d u l e , a s o f t h e d a t e h e r e o f , h a s b e e n d e t e r m i n e d b a s e d o n t h e L o a n
D i s b u r s e m e n t S c h e d u l e i n e f f e c t o n t h e E f f e c t i v e D a t e .
( b ) T h e T I F I A L e n d e r s h a l l m a k e a p p l i c a b l e r e v i s i o n s t o E x h i b i t G a n d t h e
L o a n A m o r t i z a t i o n S c h e d u l e p u r s u a n t t o S e c t i o n 9 ( i ) a s o f t h e D e b t S e r v i c e P a y m e n t
C o m m e n c e m e n t D a t e , ( i i ) o n e a c h P a y m e n t D a t e c o m m e n c i n g o n t h e D e b t S e r v i c e P a y m e n t
C o m m e n c e m e n t D a t e t o a n d i n c l u d i n g - t h e l a s t P a y m e n t D a t e p r i o r t o t h e F i x e d A m o r t i z a t i o n
P a y m e n t C o m m e n c e m e n t P e r i o d a n d ( i i i ) u p o n a n y p r e p a y m e n t o f t h e T I F I A L o a n . U p o n a n y
s u c h r e v i s i o n s t h e T I F I A L e n d e r s h a l l p r o v i d e t h e B o r r o w e r w i t h c o p i e s o f s u c h E x h i b i t G a n d
L o a n A m o r t i z a t i o n S c h e d u l e a s r e v i s e d , b u t n o f a i l u r e t o p r o v i d e o r d e l a y i n p r o v i d i n g t h e
B o r r o w e r w i t h s u c h c o p i e s s h a l l a f f e c t a n y o f t h e o b l i g a t i o n s o f t h e B o r r o w e r u n d e r t h i s
A g r e e m e n t o r t h e o t h e r T I F I A L o a n D o c u m e n t s . E a c h o f E x h i b i t G a n d t h e L o a n A m o r t i z a t i o n
1 4 3 5 2 8 7 4 . 7
2 7
2 8 2
Schedule, as of the Effective Date, has been determined based on the Anticipated TIFIA Loan •
Disbursement Schedule in effect on the Effective Date.
SECTION 9. Security and Priority; Flow of Funds.
(a) As security for the TIFIA Loan, the Borrower shall pledge, assign and
grant a lien on the Trust Estate in accordance with the provisions of the Master Indenture. The
TIFIA Loan shall be secured by the lien with respect to Trust Estate subordinate, during any
period when an Event of Default described in Section 18( a)(viii) has not occurred, only (except
as otherwise required by law) to the Lien on the Trust Estate of any Senior Obligations,
Permitted Second Lien Obligations, Hedging Obligations and related Hedge Facilities. Upon the
occurrence of an Event of Default described in Section 18(a)(viii), the TIFIA Loan shall be
secured by a first priority right, pledge, charge, preference and priority with respectto the Trust
Estate on a parity with any Senior Obligations.
(b) Except to the extent otherwiseprovided in paragraph (a) of this Section, or
as may be entitled to priority as a matter of law, the Trust Estate is and will be free and clear of
any pledge, lien, charge or encumbrance thereon or with respect thereto prior to, or of equal rank
with, the pledge created hereby, and all governmental action on the part of the Borrower to that
end has been duly and validly taken.
(c) The Borrower shall not use Revenue to make any payments or satisfy any
obligations other than in accordance with the provisions of this Section 8 and the Master
Indenture and shall not apply any portion of the Trust Estate in contravention of this Agreement
or the Master Indenture.
(d) Amounts on deposit in the Subordinate Obligations Account ofthe Project
Fund during the period on and prior to one year after the Substantial Completion Date and
amounts on deposit in Senior Lien Bond Reserve Fund, the Subordinate Obligations Payment
Fund and the Subordinate Obligation Reserve Fund established under the Master Indenture shall
be invested in Permitted Investments.
(e) [TO BE DISCUSSED] All terms used in this Section 8(e), which are not
otherwise defined in this Agreement, shall have the meaning assigned to such terms as provided
for in the Master Indenture. The Master Indenture provides that all Revenue in the Toll Revenue
Fund shall be applied substantially in the following order of priority, as more fully described,
and in accordance with the requirements specified, in Article V of the Master Indenture at the
times and in the amounts set forth below commencing after the Substantial Completion Date to
the extent that Revenue is available to make such deposits. For purposes of this Flow of Funds,
Accreted Value shall be treated as "principal."
•
First, on each Monthly Funding Date, to the Operation and Maintenance Fund, the
amount necessary to increase the balance of the Operation and Maintenance Fund to an amount
equal to the Operation and Maintenance Expenses then due and payable, plus one-sixth of the
Operation and Maintenance Expenses projected in accordance with the most recently-adopted
Annual Operating Budget of the Borrower to be due and payable during the next succeeding
calendar year; •
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S e c o n d , o n e a c h M o n t h l y F u n d i n g D a t e , a n y p a y m e n t s t h e n d u e a n d p a y a b l e b y
t h e B o r r o w e r t o t h e R e b a t e F u n d o r a n y s i m i l a r r e b a t e f u n d e s t a b l i s h e d w i t h r e s p e c t t o a n y f u t u r e
t a x - e x e m p t b o r r o w i n g t r a n s a c t i o n u n d e r t h e M a s t e r I n d e n t u r e ;
T h i r d , ( x ) o n e a c h M o n t h l y F u n d i n g D a t e a n d o n e a c h o t h e r d a t e o n w h i c h t h e
f o l l o w i n g a m o u n t s s h a l l b e d u e a n d p a y a b l e , t o t h e S e n i o r L i e n B o n d I n t e r e s t P a y m e n t A c c o u n t
t h e s u m o f ( A ) ( 1 ) i n t h e c a s e o f o u t s t a n d i n g S e n i o r O b l i g a t i o n s w i t h s e m i a n n u a l i n t e r e s t p a y m e n t
d a t e s , o n e - s i x t h ( 1 / 6 ) o f t h e a m o u n t o f t h e i n t e r e s t p a y a b l e o n s u c h S e n i o r O b l i g a t i o n s o n 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 ; ( 2 ) i n t h e c a s e o f o u t s t a n d i n g S e n i o r O b l i g a t i o n s w i t h q u a r t e r l y
i n t e r e s t p a y m e n t d a t e s , o n e - t h i r d ( 1 / 3 ) o f t h e a m o u n t o f t h e i n t e r e s t p a y a b l e o n s u c h S e n i o r
O b l i g a t i o n s o n 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 ; a n d ( 3 ) i n t h e c a s e o f o u t s t a n d i n g S e n i o r
O b l i g a t i o n s w i t h m o n t h l y i n t e r e s t p a y m e n t d a t e s , t h e a m o u n t o f i n t e r e s t p a y a b l e o n s u c h S e n i o r
O b l i g a t i o n s o n 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 ; p l u s ( B ) t h e s u m o f a n y c o n t i n u i n g s h o r t f a l l i n
t r a n s f e r s r e q u i r e d t o h a v e b e e n m a d e t o t h e S e n i o r L i e n B o n d I n t e r e s t P a y m e n t A c c o u n t o n a n y
p r e c e d i n g M o n t h l y F u n d i n g D a t e a n d a n y a m o u n t s t r a n s f e r r e d f r o m t h e S e n i o r L i e n B o n d
I n t e r e s t P a y m e n t A c c o u n t p u r s u a n t t o t h e M a s t e r I n d e n t u r e a n d n o t r e p a i d ; p l u s ( C ) i f s u c h
M o n t h l y F u n d i n g D a t e i s a l s o a n i n t e r e s t p a y m e n t d a t e o r t h e l a s t M o n t h l y F u n d i n g D a t e b e f o r e
a n i n t e r e s t p a y m e n t d a t e o n a n y S e n i o r O b l i g a t i o n s , a n y o t h e r a m o u n t r e q u i r e d t o m a k e t h e
a m o u n t c r e d i t e d t o t h e S e n i o r L i e n B o n d I n t e r e s t P a y m e n t A c c o u n t e q u a l t o t h e a m o u n t p a y a b l e
o n s u c h S e n i o r O b l i g a t i o n s o n s u c h i n t e r e s t p a y m e n t d a t e ; a n d ( y ) o n e a c h M o n t h l y F u n d i n g
D a t e , t o t h e a p p l i c a b l e S w a p P a r t i e s , s c h e d u l e d H e d g i n g O b l i g a t i o n s d u e u n d e r a n y Q u a l i f i e d
S w a p A g r e e m e n t s , i f a n y , n e t o f a n y s c h e d u l e d a m o u n t s p a y a b l e t o t h e B o r r o w e r w i t h r e s p e c t t o
s u c h s c h e d u l e d H e d g i n g O b l i g a t i o n s ;
F o u r t h , o n e a c h M o n t h l y F u n d i n g D a t e a n d o n e a c h o t h e r d a t e o n w h i c h t h e
f o l l o w i n g a m o u n t s s h a l l b e d u e a n d p a y a b l e , c o m m e n c i n g t w e l v e m o n t h s b e f o r e t h e f i r s t a n n u a l
p r i n c i p a l p a y m e n t d a t e ( i n c l u d i n g a n y m a n d a t o r y s i n k i n g f u n d r e d e m p t i o n d a t e ) o r s i x m o n t h s
b e f o r e t h e f i r s t s e m i - a n n u a l p r i n c i p a l p a y m e n t d a t e ( i n c l u d i n g a n y m a n d a t o r y s i n k i n g f u n d
r e d e m p t i o n d a t e ) , t o t h e S e n i o r L i e n B o n d P r i n c i p a l P a y m e n t A c c o u n t , t h e s u m o f ( A ) ( l ) i n t h e
c a s e o f o u t s t a n d i n g S e n i o r O b l i g a t i o n s w i t h a n n u a l p r i n c i p a l o r m a n d a t o r y s i n k i n g f u n d p a y m e n t
d a t e s , o n e - t w e l f t h ( 1 1 1 2 ) o f t h e p r i n c i p a l a n d m a n d a t o r y s i n k i n g f u n d r e d e m p t i o n s d u e o n s u c h
S e n i o r O b l i g a t i o n s ; a n d ( 2 ) i n t h e c a s e o f o u t s t a n d i n g S e n i o r O b l i g a t i o n s w i t h s e m i - a n n u a l
p r i n c i p a l o r m a n d a t o r y s i n k i n g f u n d p a y m e n t d a t e s , o n e - s i x t h ( 1 / 6 ) o f t h e p r i n c i p a l a n d
m a n d a t o r y s i n k i n g f u n d r e d e m p t i o n s d u e o n t h e s u c h S e n i o r O b l i g a t i o n s ; a n d ( B ) t h e s u m o f a n y
s h o r t f a l l i n t r a n s f e r s r e q u i r e d t o h a v e b e e n m a d e t o t h e S e n i o r L i e n B o n d P r i n c i p a l P a y m e n t
A c c o u n t o n a n y p r e v i o u s M o n t h l y F u n d i n g D a t e , p l u s a n y a m o u n t s t r a n s f e r r e d f r o m t h e S e n i o r
L i e n B o n d P r i n c i p a l P a y m e n t A c c o u n t p u r s u a n t t o S e c t i o n 5 . 2 4 a n d n o t r e p a i d ; a n d ( C ) i f t h e
M o n t h l y F u n d i n g D a t e i s a l s o a p r i n c i p a l p a y m e n t d a t e ( o r m a n d a t o r y s i n k i n g f u n d r e d e m p t i o n
d a t e ) o r t h e l a s t M o n t h l y F u n d i n g D a t e b e f o r e a p r i n c i p a l p a y m e n t d a t e ( o r m a n d a t o r y s i n k i n g
f u n d r e d e m p t i o n d a t e ) o n a n y S e n i o r O b l i g a t i o n s , a n y o t h e r a m o u n t r e q u i r e d t o m a k e t h e a m o u n t
c r e d i t e d t o t h e S e n i o r L i e n B o n d P r i n c i p a l P a y m e n t A c c o u n t e q u a l t o t h e a m o u n t o f p r i n c i p a l
d u e o n s u c h S e n i o r O b l i g a t i o n s o n s u c h p r i n c i p a l p a y m e n t d a t e o r m a n d a t o r y s i n k i n g f u n d
r e d e m p t i o n d a t e ;
F i f t h , o n e a c h M o n t h l y F u n d i n g D a t e , t o t h e S e n i o r L i e n B o n d R e s e r v e F u n d ( o r
t h e a p p l i c a b l e A c c o u n t t h e r e i n ) t h e a m o u n t n e c e s s a r y s o t h a t t h e b a l a n c e t h e r e i n e q u a l s t h e
a p p l i c a b l e S e n i o r L i e n B o n d R e s e r v e R e q u i r e m e n t c a l c u l a t e d a s o f t h e m o s t r e c e n t C a l c u l a t i o n
1 4 3 5 2 8 7 4 . 7
2 9
2 8 4
Date; [provided, however, that in the event that the Trustee shall have withdrawn moneys in the
Senior Lien Bond Reserve Fund or any Account therein for the purpose of paying principal of or
interest on the applicable Senior Obligations secured thereby when due as provided in the Master
Indenture, the Trustee shall also deposit to the Senior Lien Bond Reserve Fund or the applicable
Account therein, on each of the next twelve Monthly Funding Dates after such withdrawal, an
amount equal to one-twelfth (1/lih) of the aggregate amount of each such unreplenished
withdrawal until the amount on deposit in the Senior Lien Bond Reserve Fund (or the applicable
Account therein) is equal to the applicable Senior Lien Bond Reserve Requirement; provided
further however, that in the event such requirements cannot be fully funded, the funds available
shall be transferred to each Account in the Senior Lien Bond Reserve Fund ratably in accordance
with its respective shortfall];
Sixth, (x) on each Monthly Funding Date and on each other date on which the
following amounts shall be due and payable, to the Permitted Second Lien Obligations Interest
Payment Account· the sum of (A)(l) in the case of outstanding Permitted Second Lien
Obligations with semiannual interest payment dates, one-sixth (1/6) of the amount of the interest
payable on such Permitted Second Lien Obligations on the next interest payment date; (2) in the
case of outstanding Permitted Second Lien Obligations with quarterly interest payment dates,
one-third (1/3) of the amount of the interest payable on such Permitted Second Lien Obligations
on the next interest payment date; and (3) in the case of outstanding Permitted Second Lien
Obligations with monthly interest payment dates, the amount of interest payable on such
Permitted Second Lien Obligations on the next interest payment date; plus (B) the sum of any
continuing shortfall in transfers required to have been made to the Permitted Second Lien
Obligations Interest Payment Account on any preceding Monthly Funding Date and any amounts
transferred from the Permitted Second Lien Obligations Interest Payment Account pursuant to
the Master Indenture and not repaid; plus (C) if such Monthly Funding Date is also an interest
payment date or the last Monthly Funding Date before an interest payment date on any Permitted
Second Lien Obligations, any other amount required to make the amount credited to the
Permitted Second Lien Obligation;;_ Interest Payment Account equal to the amount payable on
such Permitted Second Lien Obligations on such interest payment date, and (y) on each Monthly
Funding Date, to the applicable Swap Parties, scheduled payments due under any Hedging
Obligations, if any, net of any scheduled amounts payable to the Borrower with respect to such
scheduled Hedging Obligations, under any Hedging Agreements entered into in connection with
such Permitted Second Lien Obligations;
Seventh, on each Monthly Funding Date and on each other date on which the
following amounts shall be due and payable, commencing twelve months before the first annual
principal payment date (including any mandatory sinking fund redemption date) or six months
before the first semi-amiual principal payment date (including any mandatory sinking fund
redemption date), to the Permitted Second Lien Obligations Principal Payment Account, the sum
of (A)(l) in the case of outstanding Permitted Second Lien Obligations with annual principal or
mandatory sinking fund payment dates, one-twelfth (1/12) of the principal and mandatory
sinking fund redemptions due on -such Permitted Second Lien Obligations; and (2) in the case of
outstanding Permitted Second Lien Obligations with semi-annual principal or mandatory sinking
fund payment dates, one-sixth (1/6) of the principal and mandatory sinking fund redemptions due
on such Permitted Second Lien Obligations; and (B) the sum of any shortfall in transfers
required to have been made to the Permitted Second Lien Obligations Principal Payment
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A c c o u n t o n a n y p r e v i o u s M o n t h l y F u n d i n g D a t e , p l u s a n y a m o u n t s t r a n s f e r r e d f r o m t h e
P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s P r i n c i p a l P a y m e n t A c c o u n t p u r s u a n t t o t h e M a s t e r I n d e n t u r e
a n d n o t r e p a i d ; a n d ( C ) i f t h e M o n t h l y F u n d i n g D a t e i s a l s o a p r i n c i p a l p a y m e n t d a t e ( o r
m a n d a t o r y s i n k i n g f u n d r e d e m p t i o n d a t e ) o r t h e l a s t M o n t h l y F u n d i n g D a t e b e f o r e a p r i n c i p a l
p a y m e n t d a t e ( o r m a n d a t o r y s i n k i n g f u n d r e d e m p t i o n d a t e ) o n a n y P e r m i t t e d S e c o n d L i e n
O b l i g a t i o n s , a n y o t h e r a m o u n t r e q u i r e d t o m a k e t h e a m o u n t c r e d i t e d t o t h e P e r m i t t e d S e c o n d
L i e n O b l i g a t i o n s P r i n c i p a l P a y m e n t A c c o u n t e q u a l t o t h e a m o u n t o f p r i n c i p a l d u e o n s u c h
P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s o n s u c h p r i n c i p a l p a y m e n t d a t e o r m a n d a t o r y s i n k i n g f u n d
r e d e m p t i o n d a t e ;
E i g h t h , o n e a c h M o n t h l y F u n d i n g D a t e , t o t h e P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s
R e s e r v e F u n d ( o r t h e a p p l i c a b l e A c c o u n t t h e r e i n ) , t h e a m o u n t n e c e s s a r y s o t h a t t h e b a l a n c e
t h e r e i n e q u a l s t h e a p p l i c a b l e P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s R e s e r v e R e q u i r e m e n t c a l c u l a t e d
a s o f t h e m o s t r e c e n t C a l c u l a t i o n D a t e ; [ p r o v i d e d , h o w e v e r , t h a t i n t h e e v e n t t h a t t h e T r u s t e e
s h a l l h a v e w i t h d r a w n m o n e y s i n t h e P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s R e s e r v e F u n d t h e r e i n f o r
t h e p u r p o s e o f p a y i n g 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 a p p l i c a b l e P e r m i t t e d S e c o n d L i e n
O b l i g a t i o n s s e c u r e d t h e r e b y w h e n d u e a s p r o v i d e d i n t h e M a s t e r I n d e n t u r e , t h e T r u s t e e s h a l l a l s o
d e p o s i t t o t h e P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s R e s e r v e F u n d , o n e a c h o f t h e n e x t t w e l v e
M o n t h l y F u n d i n g D a t e s a f t e r s u c h w i t h d r a w a l , a n a m o u n t e q u a l t o o n e - t w e l f t h ( I l l t h ) o f t h e
a g g r e g a t e a m o u n t o f e a c h s u c h u n r e p l e n i s h e d w i t h d r a w a l u n t i l t h e a m o u n t o n d e p o s i t i n t h e
P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s R e s e r v e F u n d i s e q u a l t o t h e a p p l i c a b l e P e r m i t t e d S e c o n d
L i e n O b l i g a t i o n s R e s e r v e R e q u i r e m e n t ; p r o v i d e d , f u r t h e r h o w e v e r , t h a t i n t h e e v e n t s u c h
r e q u i r e m e n t s c a n n o t b e f u l l y f u n d e d , t h e f u n d s a v a i l a b l e s h a l l b e t r a n s f e r r e d t o e a c h A c c o u n t i n
t h e P e r m i t t e d S e c o n d L i e n B o n d R e s e r v e F u n d r a t a b l y i n a c c o r d a n c e w i t h i t s r e s p e c t i v e
s h o r t f a l l ] ;
N i n t h , ( x ) o n e a c h M o n t h l y F u n d i n g D a t e a n d o n e a c h o t h e r d a t e o n w h i c h t h e
f o l l o w i n g a m o u n t s s h a l l b e d u e a n d p a y a b l e , t o t h e S u b o r d i n a t e O b l i g a t i o n s I n t e r e s t P a y m e n t
A c c o u n t t h e s u m o f ( A ) ( 1 ) i n t h e c a s e o f o u t s t a n d i n g S u b o r d i n a t e O b l i g a t i o n s w i t h s e m i a n n u a l
p a y m e n t d a t e s , o n e - s i x t h ( 1 / 6 ) o f t h e i n t e r e s t p a y a b l e o n s u c h S u b o r d i n a t e O b l i g a t i o n s o n 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 ; a n d ( 2 ) i n t h e c a s e o f o u t s t a n d i n g S u b o r d i n a t e O b l i g a t i o n s w i t h
m o n t h l y p a y m e n t d a t e s , t h e i n t e r e s t p a y a b l e o n s u c h S u b o r d i n a t e O b l i g a t i o n s o n 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 ; p l u s ( B ) t h e s u m o f a n y c o n t i n u i n g s h o r t f a l l i n t r a n s f e r s r e q u i r e d t o h a v e b e e n
m a d e t o t h e S u b o r d i n a t e O b l i g a t i o n s I n t e r e s t P a y m e n t F u n d o n a n y p r e c e d i n g M o n t h l y F u n d i n g
D a t e ; p l u s ( C ) i f s u c h M o n t h l y F u n d i n g D a t e i s a l s o a n i n t e r e s t p a y m e n t d a t e o r t h e l a s t M o n t h l y
F u n d i n g D a t e b e f o r e a n i n t e r e s t p a y m e n t d a t e o n a n y S u b o r d i n a t e O b l i g a t i o n s , a n y o t h e r a m o u n t
r e q u i r e d t o m a k e t h e a m o u n t c r e d i t e d t o t h e S u b o r d i n a t e O b l i g a t i o n s I n t e r e s t P a y m e n t A c c o u n t
e q u a l t o t h e i n t e r e s t p a y a b l e o n s u c h S u b o r d i n a t e O b l i g a t i o n s o n s u c h i n t e r e s t p a y m e n t d a t e ;
T e n t h , o n e a c h M o n t h l y F u n d i n g D a t e a n d o n e a c h o t h e r d a t e o n w h i c h t h e
f o l l o w i n g a m o u n t s s h a l l b e d u e a n d p a y a b l e , t o t h e S u b o r d i n a t e O b l i g a t i o n s P r i n c i p a l P a y m e n t
A c c o u n t t h e s u m o f ( A ) ( 1 ) i n t h e c a s e o f o u t s t a n d i n g S u b o r d i n a t e O b l i g a t i o n s w i t h a n n u a l
p r i n c i p a l p a y m e n t d a t e s , o n e - t w e l f t h ( 1 / 1 2 ) o f t h e p r i n c i p a l d u e o n s u c h S u b o r d i n a t e O b l i g a t i o n s
o n t h e n e x t p r i n c i p a l p a y m e n t d a t e ; a n d ( 2 ) i n t h e c a s e o f o u t s t a n d i n g S u b o r d i n a t e O b l i g a t i o n s
w i t h s e m i - a n n u a l p r i n c i p a l p a y m e n t d a t e s , o n e - s i x t h ( 1 / 6 ) o f t h e p r i n c i p a l r e d e m p t i o n s d u e o n
s u c h S u b o r d i n a t e O b l i g a t i o n s o n t h e n e x t p r i n c i p a l p a y m e n t d a t e ; p l u s ( B ) t h e s u m o f a n y
s h o r t f a l l i n t r a n s f e r s r e q u i r e d t o h a v e b e e n m a d e t o t h e S u b o r d i n a t e O b l i g a t i o n s P r i n c i p a l
1 4 3 5 2 8 7 4 . 7
3 1
2 8 6
Payment Account on any previous Monthly Funding Date; plus (C) if the Monthly Funding Date
·is also a principal payment date or the last Monthly Funding Date before a principal payment •
date (or mandatory sinking fund redemption date) on any Subordinate Obligations, any other
amount required to make the amount credited to the Subordinate Obligations Principal Payment
Account equal to the amount of principal due on such Subordinate Obligations on such principal
payment date or mandatory sinking fund redemption date;
[Eleventh; on each Monthly Funding Date, to the Subordinate Obligations
Reserve Fund (or the applicable Account therein), the amount, if any, necessary to increase the
balance therein (taking into account amounts then on deposit therein) to the Subordinate
Obligations Reserve Fund Required Balance];
[Twelfth, on each Monthly Funding Date, to the Repair and Rehabilitation Fund,
an amount equal to the Alternate Repair and Rehabilitation Fund Required Deposit or, if no such
deposit it is then required to be made, an amount equal to one-twelfth (1/12) of the Scheduled
Repair and Rehabilitation Fund Required Deposit for such Borrower Fiscal Year until such
deposit is made in full];
Thirteenth, in the event the Borrower has Subordinate Obligations outstanding in
the form of or securing payment of a TIFIA Loan, on each Monthly Funding Date commencing
on the Monthly Funding Date that is six months prior to the date on which TIFIA Scheduled
Debt Service is first due and payable, to the Subordinate Obligations Payment Fund, an amount
which equals [one-sixth (1/6) of] the TIFIA Scheduled Debt Service (excluding any amounts to
be applied to TIFIA Mandatory Debt Service in accordance with the Tenth clause above) due on
the immediately succeeding payment date for such TIFIA Loan;
Fourteenth, on each Monthly Funding Date, to the Capital Expenditures Fund to
the extent necessary to fund such Fund so that the balance therein (taking into account amounts
then on deposit therein) equals the Capital Expenditures Fund Required Balance, provided,
however, that in no event shall the total amount transferred into this account exceed $ ----
in the aggregate;
Fifteenth, on each Monthly Funding Date and on each other date on which the
following amounts shall be due and payable, to the counterparties to Qualified Swap Agreements
or Swaps, an amount equal to any Hedging Termination Obligations payable upon a termination
of any such Qualified Swap Agreements or Swaps; and
Sixteenth, on each Monthly Funding Date, and only to the extent funds are then available
after application of funds for the purposes specified in the prior First through
Fourteenth clauses, on such Monthly Funding Date, to the Residual Fund, all
remaining amounts, if any.
•
SECTION 10. Payment of Principal and Interest. (a) The Borrower agrees to pay the
principal of and interest on the TIFIA Loan by making payments in accordance with the
provisions of this Agreement and the Master Indenture on each Payment Date and on each other
date (including, without limitation, the Final Maturity Date) on which payment thereof is
required to be made hereunder. •
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( b ) C a p i t a l i z e d I n t e r e s t P e r i o d . N o 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 T I F I A L o a n i s r e q u i r e d t o b e m a d e d u r i n g t h e C a p i t a l i z e d I n t e r e s t P e r i o d . O n e a c h J u n e 1
a n d D e c e m b e r 1 o c c u r r i n g d u r i n g t h e C a p i t a l i z e d I n t e r e s t P e r i o d , i n t e r e s t a c c r u e d i n t h e s i x
m o n t h p e r i o d e n d i n g i m m e d i a t e l y p r i o r t o s u c h d a t e o n t h e T I F I A L o a n s h a l l b e c a p i t a l i z e d a n d
a d d e d t o t h e O u t s t a n d i n g T I F I A L o a n B a l a n c e . W i t h i n 3 0 d a y s a f t e r t h e e n d o f t h e C a p i t a l i z e d
I n t e r e s t P e r i o d , t h e T I F I A L e n d e r s h a l l g i v e w r i t t e n n o t i c e t o t h e B o r r o w e r [ a n d t h e T r u s t e e ]
s t a t i n g t h e O u t s t a n d i n g T I F I A L o a n B a l a n c e a s o f t h e c l o s e o f b u s i n e s s o n t h e l a s t d a y o f t h e
C a p i t a l i z e d I n t e r e s t P e r i o d , w h i c h s t a t e m e n t t h e r e o f s h a l l b e d e e m e d c o n c l u s i v e a b s e n t m a n i f e s t
e r r o r ; p r o v i d e d , h o w e v e r , t h a t n o f a i l u r e t o g i v e o r d e l a y i n g i v i n g s u c h n o t i c e s h a l l a f f e c t a n y o f
t h e o b l i g a t i o n s o f t h e B o r r o w e r h e r e u n d e r o r u n d e r a n y o f t h e o t h e r T I F I A L o a n D o c u m e n t s .
( c ) P a y m e n t o f T I F I A M a n d a t o r y D e b t S e r v i c e . ( i ) O n e a c h P a y m e n t D a t e
o c c u r r i n g , o n o r a f t e r t h e D e b t S e r v i c e P a y m e n t C o m m e n c e m e n t D a t e a n d o n o r p r i o r t o t h e
F i x e d A m o r t i z a t i o n P a y m e n t C o m m e n c e m e n t D a t e , t h e B o r r o w e r s h a l l p a y T I F I A M a n d a t o r y
D e b t S e r v i c e i n t h e a m o u n t o f p r i n c i p a l o f a n d i n t e r e s t o n t h e T I F I A L o a n d u e a n d p a y a b l e a s o f
s u c h d a t e a s s e t f o r t h o n E x h i b i t G , w h i c h p a y m e n t 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
S e c t i o n 9 ( e ) ; p r o v i d e d t h a t i f s u c h P a y m e n t D a t e i s a n I n t e r i m P a y m e n t D a t e , t h e a m o u n t
p a y a b l e s h a l l b e a s c a l c u l a t e d i n S e c t i o n 9 ( e ) ( i i ) .
( i i ) O n e a c h P a y m e n t D a t e c o m m e n c i n g o n t h e F i x e d A m o r t i z a t i o n P a y m e n t
C o m m e n c e m e n t D a t e , t h e B o r r o w e r s h a l l p a y T I F I A M a n d a t o r y D e b t S e r v i c e i n t h e
a m o u n t o f 1 0 0 % o f t h e a m o u n t o f p r i n c i p a l o f a n d i n t e r e s t o n t h e T I F I A L o a n d u e a n d
p a y a b l e a s o f s u c h d a t e a s s e t f o r t h o n E x h i b i t s G a n d H , w h i c h p a y m e n t 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 S e c t i o n 9 ( e ) ; p r o v i d e d t h a t i f s u c h P a y m e n t D a t e i s a n I n t e r i m
P a y m e n t D a t e , t h e a m o u n t p a y a b l e s h a l l b e a s c a l c u l a t e d i n a c c o r d a n c e w i t h S e c t i o n
( e ) ( i i ) . T h e a m o u n t o f t h e F i x e d A m o r t i z a t i o n P a y m e n t s h a l l b e c a l c u l a t e d a s o f t h e f i r s t
d a y o f t h e F i x e d A m o r t i z a t i o n P a y m e n t C o m m e n c e m e n t D a t e i n s u c h m a n n e r t h a t t h e
O u t s t a n d i n g T I F I A L o a n B a l a n c e o f t h e T I F I A L o a n a s o f s u c h d a t e s h a l l b e r e d u c e d t o
$ 0 o n t h e F i n a l M a t u r i t y D a t e ( a s s u m i n g t h a t i n t e r e s t a c c r u e s d u r i n g s u c h p e r i o d o n t h e
p r i n c i p a l b a l a n c e o f s u c h T I F I A L o a n a t t h e r a t e p e r a n n u m s e t f o r t h i n S e c t i o n 6 i n t h e
a b s e n c e o f a n E v e n t o f D e f a u l t , t h a t a l l F i x e d A m o r t i z a t i o n P a y m e n t s a r e m a d e i n a
t i m e l y m a n n e r d u r i n g s u c h p e r i o d , a n d t h a t n o a d d i t i o n a l p a y m e n t s o f p r i n c i p a l o f o r
i n t e r e s t o n t h e T I F I A L o a n a r e m a d e d u r i n g s u c h p e r i o d ) ; p r o v i d e d t h a t ( A ) t h e a m o u n t
p a y a b l e o n t h e f i r s t P a y m e n t D a t e o c c u r r i n g d u r i n g a F i x e d A m o r t i z a t i o n P a y m e n t P e r i o d
s h a l l b e a d j u s t e d o n a p r o r a t a b a s i s t o r e f l e c t t h e d u r a t i o n o f t h e p e r i o d f r o m t h e
c o m m e n c e m e n t o f t h e F i x e d A m o r t i z a t i o n P a y m e n t P e r i o d t o s u c h f i r s t P a y m e n t D a t e
s h a l l b e l e s s t h a n s i x m o n t h s , a n d ( B ) t h e r e s h a l l b e d u e a n d p a y a b l e o n t h e F i n a l
M a t u r i t y D a t e o f t h e T I F I A L o a n , a l l a m o u 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 n o t o t h e r w i s e p a i d
p u r s u a n t t o t h e p r o v i s i o n s o f t h i s A g r e e m e n t . W i t h i n 3 0 d a y s p r i o r t o t h e b e g i n n i n g o f
t h e F i x e d A m o r t i z a t i o n P a y m e n t P e r i o d f o r t h e T I F I A L o a n , t h e T I F I A L e n d e r s h a l l g i v e
w r i t t e n n o t i c e t o t h e B o r r < ; > w e r o f t h e a m o u n t o f t h e F i x e d A m o r t i z a t i o n P a y m e n t s f o r
e a c h S e m i - A n n u a l P a y m e n t D a t e o c c u r r i n g d u r i n g t h e F i x e d A m o r t i z a t i o n P a y m e n t
P e r i o d ( i n c l u d i n g a n y a d j u s t m e n t i n r e s p e c t o f t h e f i r s t s u c h p a y m e n t ) , w h i c h a m o u n t
s h a l l b e d e e m e d c o n c l u s i v e a b s e n t m a n i f e s t e r r o r . T o t h e e x t e n t t h a t a n y p r e p a y m e n t s o f
t h e T I F I A L o a n s h a l l b e m a d e d u r i n g t h e F i x e d A m o r t i z a t i o n P a y m e n t P e r i o d i n a d d i t i o n
t o t h e F i x e d A m o r t i z a t i o n P a y m e n t s , s u c h p r e p a y m e n t s s h a l l b e a p p l i e d t o t h e r e m a i n i n g
1 4 3 5 2 8 7 4 . 7
3 3
2 8 8
principal portion of the Fixed Amortization Payments in the inverse order of the maturity
thereof.
(d) Payment of TIFIA Scheduled Debt Service. On each Payment Date
occurring on or after the Debt Service Payment Commencement Date and prior to the Fixed
Amortization Payment Commencement Date, the Borrower shall pay TIFIA Scheduled Debt
Service on the TIFIA Loan for each Payment Period in the amount set forth on Exhibits G and H
hereto, which payments shall be made in accordance with Section 9( e); provided that is such
Payment Date is an Interim Payment Date, the amount payable shall be calculated in accordance
with Section 9(e)(iii); and provided further, however, that the Borrower's obligation to pay the
non-mandatory portion of the TIFIA Scheduled Debt Service on any Payment Date shall be
applicable only if and solely to the extent that funds shall be available thereof on such date in
accordance with the provisions of Section 8(f). To the extent that the aggregate amount of
TIFIA Scheduled Debt Service actually paid during any Payment Period for the TIFIA Loan in
accordance with the provisions hereof shall be less than the aggregate amount of TIFIA
Scheduled Debt Service for such period determined as provided above, then the unpaid portion
of such TIFIA Scheduled Debt Service shall be deferred until the period commencing on the
Fixed Amortization Payment Commencement Date and shall be part of the Outstanding TIFIA
Loan Balance that is due and payable over the remaining life of the TIFIA Loan from the Fixed
Amortization Payment Commencement Date to the Final Maturity Date. Following any such
deferral, Exhibit G shall be revised on each such Payment Date to take into account such deferral
and any adjustment for TIFIA Scheduled Debt Service, provided that TIFIA Mandatory Debt
Service prior to the Fixed Amortization Payment Commencement Date shall not be revised or
altered as a result thereof.
(e) Dates and Amounts of Payment. The Borrower shall make payments of
TIFIA Debt Service on each Payment Date commencing with the Debt Service Payment
Commencement Date, as follows:
(i) If Senior Obligations have any payment of principal or interest due
on any Interim Payment Date after the Debt Service Payment Commencement
Date, the Borrower shall promptly notify the TIFIA Lender thereof in writing,
identifying the period covered by such Interest Period and the interest payment
date on which interest on or principal of the Senior Obligations for such Interest
Period is due and payable.
(ii) The amount of TIFIA Debt Service due and payable on any
Payment Date occurring during any Payment Period shall be equal to the amount
of TIFIA Debt Service for such Payment Period as shown on Exhibit G, as the
same may be revised as provided in Section 7(b ), multiplied by a fraction, the
numerator of which is equal to the number of months contained in the Interest
Period ending on such Payment Date and the denominator of which is equal to 6.
(iii) Notwithstanding the foregoing provisions of this Section 9( e) or
•
•
any other provision of this Agreement, at any time when no Senior Obligations or
Permitted Second Lien Obligations shall be outstanding, or when no Senior
Obligations or Permitted Second Lien Obligations shall be outstanding other than •
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S e n i o r O b l i g a t i o n s o r P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s w i t h r e s p e c t t o w h i c h
p r i n c i p a l a n d i n t e r e s t a r e p a y a b l e o n S e m i - A n n u a l P a y m e n t D a t e s , t h e n T I F I A
D e b t S e r v i c e h e r e u n d e r s h a l l b e p a y a b l e o n l y o n e a c h S e m i - A n n u a l P a y m e n t D a t e
o c c u r r i n g d u r i n g t h e P a y m e n t P e r i o d . I n t h e e v e n t t h a t a n I n t e r i m P a y m e n t D a t e
i s o t h e r t h a n a m o n t h l y d a t e , t h e m e t h o d f o r d e t e r m i n i n g t h e m e t h o d f o r
c a l c u l a t i n g i n t e r i m p a y m e n t s s h a l l b e d e t e r m i n e d a t s u c h t i m e b y t h e p a r t i e s
h e r e t o .
( f ) M a n n e r o f P a y m e n t . P a y m e n t s u n d e r t h i s A g r e e m e n t a n d t h e T I F I A B o n d
s h a l l b e m a d e b y w i r e t r a n s f e r o n o r b e f o r e e a c h P a y m e n t D a t e i n i m m e d i a t e l y a v a i l a b l e f u n d s i n
a c c o r d a n c e w i t h p a y m e n t i n s t r u c t i o n s p r o v i d e d b y a T I F I A L e n d e r ' s A u t h o r i z e d R e p r e s e n t a t i v e
p u r s u a n t t o S e c t i o n 3 5 , a s m o d i f i e d i n w r i t i n g f r o m t i m e - t o - t i m e b y t h e T I F I A L e n d e r ' s
A u t h o r i z e d R e p r e s e n t a t i v e .
( g ) T I F I A B o n d ; A d j u s t m e n t s t o L o a n A m o r t i z a t i o n S c h e d u l e . A s e v i d e n c e
o f t h e B o r r o w e r ' s o b l i g a t i o n t o r e p a y t h e T I F I A L o a n , t h e B o r r o w e r s h a l l i s s u e a n d d e l i v e r t o t h e
T I F I A L e n d e r , o n o r p r i o r t o t h e E f f e c t i v e D a t e , t h e T I F I A B o n d s u b s t a n t i a l l y i n t h e f o r m o f
E x h i b i t A , a t t a c h e d h e r e t o a n d i n c o r p o r a t e d h e r e i n b y r e f e r e n c e , h a v i n g a m a x i m u m p r i n c i p a l
a m o u n t o f [ $ 4 5 1 , 0 0 0 , 0 0 0 ] ( s u b j e c t t o i n c r e a s e o r d e c r e a s e a s h e r e i n p r o v i d e d ) a n d b e a r i n g
i n t e r e s t a t t h e r a t e s e t f o r t h i n S e c t i o n 6 . T h e T I F I A L e n d e 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 o n t h e
g r i d a t t a c h e d t o s u c h T I F I A B o n d a s A p p e n d i x O n e , a t t a c h e d h e r e t o a n d i n c o r p o r a t e d h e r e i n b y
r e f e r e n c e , t h e a m o u n t o f e a c h d i s b u r s e m e n t m a d e u n d e r t h i s A g r e e m e n t a n d t o a m e n d t h e L o a n
A m o r t i z a t i o n S c h e d u l e f r o m t i m e - t o - t i m e i n a c c o r d a n c e w i t h S e c t i o n 7 h e r e o f . A b s e n t m a n i f e s t
e r r o r , t h e T I F I A L e n d e r ' s d e t e r m i n a t i o n o f s u c h m a t t e r s a s s e t f o r t h o n A p p e n d i x O n e t o t h e
T I F I A B o n d a n d t h e L o a n A m o r t i z a t i o n S c h e d u l e s h a l l b e c o n c l u s i v e e v i d e n c e t h e r e o f .
S E C T I O N 1 1 . P r e p a y m e n t .
( a ) M a n d a t o r y . T h e B o r r o w e r s h a l l p r e p a y t h e T I F I A L o a n i n w h o l e o r i n
p a r t , w i t h o u t p e n a l t y o r p r e m i u m , i n t h e a m o u n t s a n d a t t h e t i m e s r e q u i 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 5 ( q ) . S u c h p r e p a y m e n t s s h a l l b e u s e d f i r s t t o p a y i n t e r e s t o n T I F I A L o a n
t o t h e e x t e n t t h a t i n t e r e s t h a s a c c r u e d a n d h a s n o t b e e n p a i d o n a c u r r e n t b a s i s u n d e r t h e L o a n
A m o r t i z a t i o n S c h e d u l e a n d t h e n t o p r e p a y p r i n c i p a l a s p r o v i d e d i n S e c t i o n 7 . E a c h s u c h
p r e p a y m e n t s h a l l b e a c c o m p a n i e d b y a c e r t i f i c a t e s i g n e d b y t h e B o r r o w e r ' s 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 d e n t i f y i n g t h e p r o v i s i o n o f t h i s A g r e e m e n t p u r s u a n t t o w h i c h s u c h p r e p a y m e n t i s
b e i n g m a d e a n d c o n t a i n i n g a c a l c u l a t i o n i n r e a s o n a b l e d e t a i l o f t h e a m o u n t o f s u c h p r e p a y m e n t .
( b ) O p t i o n a l . T h e B o r r o w e r m a y p r e p a y t h e T I F I A L o a n i n w h o l e o r i n p a r t
( a n d , i f i n p a r t , t h e a m o u n t s t h e r e o f t o b e p r e p a i d s h a l l b e d e t e r m i n e d b y t h e B o r r o w e r ; p r o v i d e d ,
h o w e v e r , t h a t s u c h p r e p a y m e n t s s h a l l b e i n p r i n c i p a l a m o u n t s o f $ 1 , 0 0 0 , 0 0 0 o r a n y i n t e g r a l
m u l t i p l e o f $ 1 5 , 0 0 0 i n e x c e s s t h e r e o f ) , a t a n y t i m e o r f r o m t i m e - t o - t i m e , w i t h o u t p e n a l t y o r
p r e m i u m , b y p a y i n g t o t h e T I F I A L e n d e r s u c h p r i n c i p a l a m o u n t o f t h e T I F I A L o a n t o b e p r e p a i d ,
t o g e t h e r w i t h t h e u n p a i d i n t e r e s t a c c r u e d o n t h e a m o u n t o f p r i n c i p a l s o p r e p a i d t o t h e d a t e o f
s u c h p r e p a y m e n t . E a c h p r e p a y m e n t o f t h e T I F I A L o a n s h a l l b e m a d e o n s u c h d a t e a n d i n s u c h
p r i n c i p a l a m o u n t a s s h a l l b e s p e c i f i e d b y t h e B o r r o w e r i n a w r i t t e n n o t i c e d e l i v e ~ e d t o t h e T l F I A
L e n d e r . I n t h e c a s e o f a n y p a r t i a l p r e p a y m e n t , s u c h w r i t t e n n o t i c e s h a l l b e d e l i v e r e d t o t h e
T I F I A L e n d e r n o t l e s s t h a n 1 0 d a y s o r m o r e t h a n 3 0 d a y s p r i o r t o t h e d a t e s e t f o r p r e p a y m e n t .
1 4 3 5 2 8 7 4 . 7
3 5
2 9 0
(c) General. Notice having been given as provided in Section 1 O(b ), the
principal amount of the TIFIA Loan stated in such notice or the whole thereof, as the case may •
be, shall become due and payable on the prepayment date stated in such notice, together with
interest accrued and unpaid to the prepayment date on the principal amount then being prepaid.
The amount of principal and interest due and payable as a result of a mandatory or optional
prepayment shall be paid (i) in case the entire unpaid balance of the principal of the TIFIA Bond
is to be prepaid, upon presentation and surrender of such TIFIA Bond evidencing the obligation
to repay such TIFIA Loan to the Borrower or its representative at the principal office of the
TIFIA Lender, and (ii) in case only part ofthe unpaid balance ofprincipal of such TIFIA Bond is
to be prepaid, the TIFIA Lender may make a notation on the TIFIA Bond indicating the amount
of principal of and interest on such TIFIA Bond then being prepaid. All such partial
prepayments of principal shall be applied to the remaining Outstanding TIFIA Loan Balance in
the inverse order of the maturity thereof and the remaining Fixed Amortization Payments will be
recalculated to be an amount sufficient to amortize the remaining Outstanding TIFIA Loan
Balance at the TIFIA Interest Rate over the period ending on the Final Maturity Date and the
resulting Fixed Amortization Payments will be reflected in revised Exhibits G and H. The TIFIA
Lender shall, and is hereby authorized by the Borrower, to make the appropriate notations
thereof on Appendix One to such TIFIA Bond and to revise the Loan Amortization Schedule for
each Fixed Amortization Payment Period and Exhibits G and H in accordance herewith. Absent
manifest error such TIFIA Lender notations and revisions shall be conclusive. If said moneys
shall not have been so paid on the prepayment date, such principal amount of such TIFIA Bond
shall continue to bear interest until payment thereof at the rate provided for in Section 6.
SECTION 12. Compliance with Laws. The Borrower covenants to require its contractors •
and subcontractors to abide by all applicable federal and State laws. The list of federal laws
attached as Exhibit E is illustrative of the type of requirements generally applicable to
transportation projects and is not intended to be exhaustive. The FHW A California Division
Office has oversight responsibility for ensuring compliance with all applicable provisions of
federal law. Pursuant to 23 U.S.C. § 106(c) and the Project Oversight Agreement, the Borrower
and Caltrans pursuant to the Project Oversight Agreement will be responsible for certain Project
oversight activities. The Borrower agrees to cooperate with the FHW A California Division
Office and Caltrans in carrying out its duties under this Agreement and the Project Oversight
Agreement. The Borrower agrees that there will be no irreversible or irretrievable commitment
ofresources, including but not limited to physical construction, before all State and/or federal
environmental permits required for commencement of construction of the relevant portion of the
Project are finalized and approved by the appropriate resource agencies. In the event that an
environmental permit that has not been obtained is required after construction on any applicable
portion of the Project has begun, the Borrower shall take immediate steps to acquire that permit.
If the Borrower begins construction before all required permits have been obtained, the Borrower
shall assume the risk of any loss associated therewith.
SECTION 13. Conditions Precedent. Notwithstanding anything in this Agreement to the
contrary, this Agreement shall not become effective and the TIFIA Lender shall have no
obligation to disburse any loan proceeds to the Borrower until each of the following conditions
precedent shall have been satisfied:
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( a ) T h e B o r r o w e r s h a l l ( i ) h a v e d u l y e x e c u t e d a n d d e l i v e r e d t o t h e T r u s t e e
e a c h o f t h e M a s t e r I n d e n t u r e , 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 t h i s A g r e e m e n t , e a c h i n
f o r m a n d s u b s t a n c e s a t i s f a c t o r y t o t h e T I F I A L e n d e r a n d t h e T r u s t e e a n d ( i i ) d u l y e x e c u t e d a n d
d e l i v e r e d t h e T I F I A B o n d t o t h e T I F I A L e n d e r , i n f o r m a n d s u b s t a n c e s a t i s f a c t o r y t o t h e T I F I A
L e n d e r a n d t h e T r u s t e e .
( b ) C o u n s e l t o t h e B o r r o w e r s h a l l h a v e r e n d e r e d t o t h e T I F I A L e n d e r l e g a l
o p i n i o n s i n s u b s t a n t i a l l y t h e f o r m s a t t a c h e d h e r e t o a s E x h i b i t I .
( c ) T h e B o r r o w e r s h a l l h a v e p r o v i d e d a c e r t i f i c a t e a s t o t h e a b s e n c e o f
d e b a r m e n t , s u s p e n s i o n o r v o l u n t a r y e x c l u s i o n f r o m p a r t i c i p a t i o n i n G o v e r n m e n t c o n t r a c t s ,
p r o c u r e m e n t a n d n o n - p r o c u r e m e n t m a t t e r s 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 C .
( d ) T h e B o r r o w e r s h a l l h a v e p r o v i d e d t o t h e T I F I A L e n d e r ' s s a t i s f a c t o r y
e v i d e n c e t h a t t h e P r o j e c t h a s s a t i s f i e d t h e a p p l i c a b l e p l a n n i n g a n d p r o g r a m m a t i c r e q u i r e m e n t s o f
2 3 U . S . C . � � 1 3 4 a n d 1 3 5 .
( e ) T h e B o r r o w e r s h a l l h a v e p r o v i d e d e v i d e n c e t o t h e T I F I A L e n d e r ' s
s a t i s f a c t i o n , n o t l a t e r t h a n 1 4 d a y s p r i o r t o t h e E f f e c t i v e D a t e o r s u c h o t h e r d a t e a s d e e m e d
a c c e p t a b l e b y t h e T I F I A L e n d e r , o f t h e a s s i g n m e n t b y a N a t i o n a l l y R e c o g n i z e d R a t i n g A g e n c y
o f a n I n v e s t m e n t G r a d e R a t i n g o n t h e I n i t i a l S e n i o r O b l i g a t i o n s a n d t h e T I F I A L o a n .
( f ) T h e B o r r o w e r s h a l l h a v e d e l i v e r e d t o t h e T I F I A L e n d e r a c e r t i f i c a t e
d e s i g n a t i n g t h e B o r r o w e r ' s 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 s u c h p e r s o n ' s p o s i t i o n a n d
i n c u m b e n c y a n d a c e r t i f i c a t e o f t h e B o r r o w e r t o t h e e f f e c t t h a t t h e i n s u r a n c e r e q u i r e m e n t s o f
S e c t i o n 1 5 ( h ) h a v e b e e n s a t i s f i e d a s o f t h e E f f e c t i v e D a t e . T h e f o r e g o i n g c o n d i t i o n i s w a i v e d
p u r s u a n t t o t h e B o r r o w e r ' s s a t i s f a c t i o n o f t h e c o v e n a n t s i n S e c t i o n 1 5 ( h ) .
( g ) T h e B o r r o w e r s h a l l h a v e d e m o n s t r a t e d t o t h e T I F I A L e n d e r ' s s a t i s f a c t i o n
t h a t t h e f u n d s f o r e c a s t e d t o b e a v a i l a b l e u n d e r t h e B a s e C a s e P r o j e c t i o n s w i l l b e s u f f i c i e n t t o
c o m p l e t e t h e P r o j e c t .
( h ) T h e B o r r o w e r s h a l l h a v e d e l i v e r e d a n o r i g i n a l f u l l y e x e c u t e d c o u n t e r p a r t
o f t h e T r a f f i c a n d R e v e n u e S t u d y i n f o r m a n d s u b s t a n c e a c c e p t a b l e t o t h e T I F I A L e n d e r .
( i ) T h e B o r r o w e r s h a l l h a v e d e l i v e r e d o r i g i n a l o r c e r t i f i e d c o p i e s o f f u l l y
e x e c u t e d c o u n t e r p a r t s o f e a c h P r i n c i p a l P r o j e c t C o n t r a c t e n t e r e d i n t o a s o f t h e E f f e c t i v e D a t e .
( j ) [ T h e B o r r o w e r s h a l l h a v e p r o v i d e d c e r t i f i e d c o p i e s o f a l l a v a i l a b l e
a g r e e m e n t s a n d a n y p l a n s o f a c q u i s i t i o n r e l a t e d t o t h e a c q u i s i t i o n o r c o n t r o l o f a n y P r o j e c t r i g h t -
o f - w a y t o b e a c q u i r e d w i t h t h e p r o c e e d s o f t h e T I F I A L o a n . ]
( k ) T h e B o r r o w e r s h a l l h a v e d e m o n s t r a t e d t o t h e T I F I A L e n d e r ' s s a t i s f a c t i o n
t h a t i t h a s a l l n e c e s s a r y , p e r m i t s a n d g o v e r n m e n t a l a p p r o v a l s n e c e s s a r y t o c o m m e n c e
c o n s t r u c t i o n , e x c e p t t h o s e h e r e i n a f t e r r e q u i r e d t o b e o b t a i n e d b y t h e D e s i g n - B u i l d C o n t r a c t o r
p u r s u a n t t o t h e D e s i g n - B u i l d C o n t r a c t a n d d e l i v e r e d t o t h e T I F I A L e n d e r .
1 4 3 5 2 8 7 4 . 7
3 7
2 9 2
(I) The Borrower shall have delivered to the TIFIA Lender a certified
schedule acceptable to the TIFIA Lender demonstrating that the projected Revenue shall be •
sufficient to meet the Loan Amortization Schedule and meet the requirements of the Rate
Covenant contained in Section 15( o) hereof.
(m) The Borrower shall have provided evidence of compliance with the
National Environmental Policy Act of 1969 (42 U.S.C. §4321 et seq.).
(n) The TIFIA Lender shall have delivered its initial TIFIA Lender's
Authorized Representative certificate.
( o) The Borrower shall also have delivered such other agreements,
documents, instruments, opinions and other items required by the TIFIA Lender, all in form and
substance satisfactory to the TIFIA Lender, including, but not limited to, evidence that all other
Project funding requirements have been, or will be, met (including evidence of other funding
sources or funding commitments).
(p) The Borrower shall have obtained a Data Universal Number System
number with the Federal System for Awards Management (formerly the Central Contractor
Registry).
( q) The Borrower shall have delivered, in form and substance, satisfactory to
the TIFIA Lender, a letter addressed to Caltrans, acknowledging the Borrower's obligation to
comply with the Project Oversight Agreement.
(r) The Borrower shall have caused counsel to the Trustee to have rendered to
the TIFIA Lender a legal opinion as to the due execution and validity of the documents to be
executed by the Trustee, namely, the Master Indenture, the First Supplemental Indenture and the
Second Supplemental Indenture.
SECTION 14. Representations and Warranties of Borrower. The Borrower hereby
represents and warrants that as of the Effective Date and, as to each of the representations and
warranties below other than those contained in clauses (b) and (m) of this Section, as of each
date on which any disbursement of the TIFIA Loan is made:
(a) The Borrower is a county transportation commission duly existing under
the laws of the State of California, duly organized, validly existing and in good standing under
the laws of the State, has full legal right, power and authority to enter into the Related
Documents then in existence, to execute the TIFIA Bond, and to carry out and consummate all
transactions contemplated by hereby and thereby and has duly authorized the execution, delivery
and performance of the Related Documents.
(b) As of the Effective Date, the officers of the Borrower executing the
Related Documents to which the Borrower is a party, are duly and properly in office and fully
authorized to execute the same.
•
(c) Each of the TIFIA Loan Documents has been duly authorized, executed •
and delivered by the Borrower and constitutes the legal, valid and binding agreement of the
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B o r r o w e r e n f o r c e a b l e i n a c c o r d a n c e w i t h i t s t e r m s , e x c e p t a s s u c h e n f o r c e a b i l i t y ( A ) m a y b e
l i m i t e d b y a p p l i c a b l e 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
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 a n d ( B ) i s s u b j e c t t o g e n e r a l p r i n c i p l e s o f e q u i t y
( r e g a r d l e s s o f w h e t h e r e n f o r c e a b i l i t y i s c o n s i d e r e d i n e q u i t y o r a t l a w ) .
( 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 t h e R e l a t e d D o c u m e n t s t o w h i c h t h e
B o r r o w e r i s a p a r t y , t h e c o n s u m m a t i o n o f t h e t r a n s a c t i o n s c o n t e m p l a t e d i n t h e R e l a t e d
D o c u m e n t s a n d t h e f u l f i l l m e n t o f o r c o m p l i a n c e w i t h 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 R e l a t e d
D o c u m e n t s w i l l n o t , i n a n y m a t e r i a l r e s p e c t , c o n f l i c t w i t h o r c o n s t i t u t e a v i o l a t i o n o r b r e a c h o f o r
d e f a u l t ( w i t h d u e n o t i c e o r t h e p a s s a g e o f t i m e o r b o t h ) b y t h e B o r r o w e r o f a n y a p p l i c a b l e l a w o r
a d m i n i s t r a t i v e r u l e o r r e g u l a t i o n , o r a n y a p p l i c a b l e c o u r t o r a d m i n i s t r a t i v e d e c r e e o r o r d e r , o r a n y
i n d e n t u r e , m o r t g a g e , d e e d o f t r u s t , l o a n a g r e e m e n t , l e a s e , c o n t r a c t o r o t h e r a g r e e m e n t o r
i n s t r u m e n t t o w h i c h t h e B o r r o w e r i s a p a r t y o r b y w h i c h i t o r i t s p r o p e r t i e s a r e o t h e r w i s e s u b j e c t
o r b o u n d , o r r e s u l t i n t h e c r e a t i o n o r i m p o s i t i o n o f a n y p r o h i b i t e d L i e n , c h a r g e o r e n c u m b r a n c e
o f a n y n a t u r e w h a t s o e v e r u p o n a n y o f t h e p r o p e r t y o r a s s e t s o f t h e B o r r o w e r .
( e ) N o c o n s e n t o r a p p r o v a l o f a n y t r u s t e e , h o l d e r o f a n y i n d e b t e d n e s s o f t h e
B o r r o w e r o r a n y o t h e r P e r s o n , a n d n o c o n s e n t , p e r m i s s i o n , a u t h o r i z a t i o n , o r d e r o r l i c e n s e o f , o r
f i l i n g o r r e g i s t r a t i o n w i t h , a n y G o v e r n m e n t a l A u t h o r i t y r e q u i r e d a s o f t h e d a t e h e r e o f i 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 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 B o r r o w e r o f t h e R e l a t e d
D o c u m e n t s , t h e c o n s u m m a t i o n o f a n y t r a n s a c t i o n c o n t e m p l a t e d b y t h e R e l a t e d D o c u m e n t s , o r
t h e f u l f i l l m e n t o f o r c o m p l i a n c e w i t h t h e B o r r o w e r o f 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 R e l a t e d
D o c u m e n t s , e x c e p t a s h a v e b e e n o b t a i n e d o r m a d e a n d a s a r e i n f u l l f o r c e a n d e f f e c t . .
( f ) T h e r e i s n o a c t i o n , s u i t , p r o c e e d i n g , i n q u i r y o r i n v e s t i g a t i o n b e f o r e o r b y
a n y c o u r t o r o t h e r G o v e r n m e n t a l A u t h o r i t y , p e n d i n g , o r t o t h e k n o w l e d g e o f t h e B o r r o w e r a f t e r
r e a s o n a b l e i n q u i r y a n d i n v e s t i g a t i o n , t h r e a t e n e d a g a i n s t o r a f f e c t i n g t h e B o r r o w e r o r t h e a s s e t s ,
p r o p e r t i e s o r o p e r a t i o n s o f t h e B o r r o w e r w h i c h a r e l i k e l y t o 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 . T h e
B o r r o w e r i s n o t i n d e f a u l t ( a n d n o e v e n t h a s o c c u r r e d a n d i s c o n t i n u i n g w h i c h w i t h t h e g i v i n g o f
n o t i c e o r t h e p a s s a g e o f t i m e o r b o t h c o u l d c o n s t i t u t e a d e f a u l t ) w i t h r e s p e c t t o a n y o r d e r o r
d e c r e e o f a n y c o u r t o r a n y o r d e r , r e g u l a t i o n o r d e m a n d o f a n y o t h e r G o v e r n m e n t a l A u t h o r i t y ,
w h i c h d e f a u l t w o u l d b e r e a s o n a b l y l i k e l y t o 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 .
( g ) T h e M a s t e r I n d e n t u r e e s t a b l i s h e s , i n f a v o r o f t h e T r u s t e e , f o r t h e b e n e f i t o f
t h e T I F I A L e n d e r , t h e T I F I A L i e n w h i c h i t p u r p o r t s t o c r e a t e ; s u c h T I F I A L i e n i s i n f u l l f o r c e
a n d e f f e c t a n d i s n o t s u b o r d i n a t e o r j u n i o r t o a n y o t h e r L i e n s i n r e s p e c t o f t h e T r u s t E s t a t e e x c e p t
a s t o t h e e x t e n t e x p l i c i t l y s e t f o r t h i n t h e M a s t e r I n d e n t u r e a n d t h e B o r r o w e r i s n o t i n b r e a c h o f
a n y c o v e n a n t s s e t f o r t h i n S e c t i o n 1 5 ( c ) o f t h i s A g r e e m e n t a n d t h e M a s t e r I n d e n t u r e w i t h r e s p e c t
t h e r e t o .
( h ) U p o n t h e o c c u r r e n c e o f a B a n k r u p t c y R e l a t e d E v e n t , t h e T I F I A L e n d e r
s h a l l b e e n t i t l e d t o t h e r i g h t s o f a B o n d h o l d e r o f a S e n i o r O b l i g a t i o n f o r a l l p u r p o s e s u n d e r t h e
M a s t e r I n d e n t u r e a l l a s s e t f o r t h i n t h e M a s t e r I n d e n t u r e , a n d s u c h r i g h t s a r e v a l i d s e c u r i t y r i g h t s
o f t h e T I F I A L e n d e r e n f o r c e a b l e u n d e r S t a t e l a w w i t h o u t a n y f u r t h e r a c t i o n b y t h e B o r r o w e r o r
a n y o t h e r p a r t y .
1 4 3 5 2 8 7 4 . 7
3 9
2 9 4
(i) Neither the Borrower nor its principals (as defined in 2 C.F.R. Part
180.995) is debarred, suspended or voluntarily excluded from participation in Government •
contracts, procurement or non-procurement matters or delinquent on a Government debt as more
fully set forth in the certificate delivered in substantially the form of Exhibit C.
G) The representations, warranties and certifications of the Borrower set forth
in this Agreement, the Project Oversight Agreement, the Master Indenture and the Second
Supplemental Indenture and all information provided by the Borrower to the TIFIA Lender when
taken as a whole and after giving effect to any updates, remain true and accurate.
(k) The Borrower has complied, with respect to the Project, with all
applicable requirements of the National Environmental Policy Act of 1969 (42 U.S.C. §4321
et seq.).
(1) The Project has been included in the (i) [regional transportation plan for
the Southern California Association of Governments], and (ii) the approved State transportation
improvement program to the extent required by 23 U.S.C. §602(a)(3).
(m) The TIFIA Loan has received an Investment Grade Rating from at least
one Nationally Recognized Rating Agency, and written evidence of such rating h~s been
provided to the TIFIA Lender prior to the Effective Date, and to the knowledge of the Borrower,
no such rating has been reduced, withdrawn or suspended as of the Effective Date.
(n) Upon execution and delivery of this Agreement and the TIFIA Bond, the •
Borrower is not in default in any material respect under the terms hereof or thereof and no event
has occurred or condition exists which, with due notice or lapse of time or both, would constitute
an Event of Default.
( o) All authorizations, consents, approvals, licenses, permits and reviews
required as of the Effective Date for the undertaking and completion by the Borrower of the
Project have been obtained or effected and are in full force and effect and there is no basis for the
revocation of any such authorization, consent, commitments or approval.
(p) To its knowledge, the Borrower is not in violation of (i) any applicable
anti-money laundering laws, including those contained in the Bank Secrecy Act, (ii) any
applicable economic sanction laws administered by OF AC or by the United States Department of
State or (iii) any applicable anti-drug trafficking, anti-terrorism, or anti-corruption laws, civil or
criminal.
(q) The Principal Project Contracts, which have been executed and delivered
as of the Effective Date, are all in full force and effect, the Borrower is not in default under any
of such agreements or contracts, and, to the knowledge of the Borrower, no party to any of such
agreements or contracts is in default thereunder.
SECTION 15. Representations, Warranties, and Covenants ofTIFIA Lender. The TIFIA
Lender represents and warrants that:
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( a ) T h e T I F I A L e n d e r h a s a l l r e q u i s i t e p o w e r a n d a u t h o r i t y t o m a k e t h e T I F I A
L o a n a n d t o p e r f o r m a l l 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 t h e R e l a t e d D o c u m e n t s t o w h i c h i t i s a
p a r t y .
( b ) T h e R e l a t e d D o c u m e n t s t o w h i c h i t i s a p a r t y h a v e b e e n d u l y a u t h o r i z e d ,
e x e c u t e d a n d d e l i v e r e d b y T I F I A L e n d e r , a n d a r e l e g a l l y v a l i d a n d b i n d i n g a g r e e m e n t s o f t h e
T I F I A L e n d e r , e n f o r c e a b l e i n a c c o r d a n c e w i t h t h e i r t e r m s .
( c ) T h e o f f i c e r s o f t h e T I F I A L e n d e r e x e c u t i n g e a c h o f t h e R e l a t e d
D o c u m e n t s t o w h i c h t h e T I F I A L e n d e r i s a p a r t y i s d u l y a n d p r o p e r l y i n o f f i c e a n d f u l l y
a u t h o r i z e d t o e x e c u t e t h e s a m e o n b e h a l f o f t h e T I F I A L e n d e r .
S E C T I O N 1 6 . B o r r o w e r C o v e n a n t s . T h e B o r r o w e r h e r e b y c o v e n a n t s a n d a g r e e s t h a t :
( a ) P e r m i t t e d I n d e b t e d n e s s . E x c e p t f o r P e r m i t t e d D e b t , t h e B o r r o w e r s h a l l
n o t i s s u e o r i n c u r i n d e b t e d n e s s o f a n y k i n d p a y a b l e f r o m t h e T r u s t E s t a t e .
( b ) A d d i t i o n a l O b l i g a t i o n s . T h e B o r r o w e r s h a l l n o t i s s u e a d d i t i o n a l
O b l i g a t i o n s u n d e r t h e M a s t e r I n d e n t u r e o r i n c u r a n y o t h e r i n d e b t e d n e s s s e c u r e d b y a l l o r a n y
p o r t i o n o f t h e T r u s t E s t a t e t h a t i s o n a p a r i t y w i t h o r p r i o r t o t h e T I F I A L i e n w i t h o u t f i r s t
s a t i s f y i n g t h e r e q u i r e m e n t s f o r t h e i s s u a n c e o f s u c h O b l i g a t i o n s e s t a b l i s h e d b y S e c t i o n s 3 . 0 1 ,
3 . 0 2 , 3 . 0 3 a n d / o r 3 . 0 4 , a s a p p l i c a b l e , o f t h e M a s t e r I n d e n t u r e , i n c l u d i n g o b t a i n i n g t h e w r i t t e n
c o n s e n t o f t h e T I F I A L e n d e r a s r e q u i r e d t h e r e b y .
( c ) S e c u r i n g t h e T I F I A L i e n . T h e B o r r o w e r s h a l l a t a n y a n d a l l t i m e s , s o f a r
a s i t m a y b e a u t h o r i z e d b y l a w , a d o p t , m a k e , d o , e x e c u t e , a c k n o w l e d g e a n d d e l i v e r , a l l a n d e v e r y
s u c h f u r t h e r r e s o l u t i o n s , a c t s , c o n v e y a n c e s , a s s i g n m e n t s , t r a n s f e r s a n d a s s u r a n c e s a s 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 f o r t h e b e t t e r a s s u r i n g , c o n v e y i n g , g r a n t i n g , a s s i g n i n g , s e c u r i n g a n d
c o n f i r m i n g t h e l i e n o n t h e T r u s t E s t a t e g r a n t e d f o r t h e b e n e f i t o f t h e T I F I A L e n d e r , p u r s u a n t t o
t h e M a s t e r I n d e n t u r e , o r i n t e n d e d s o t o b e g r a n t e d p u r s u a n t t o t h e M a s t e r I n d e n t u r e a n d t h e
R C T C A c t , o r w h i c h t h e B o r r o w e r m a y b e c o m e b o u n d t o g r a n t a n d t h e T r u s t E s t a t e i s a n d w i l l
b e f r e e a n d c l e a r o f a n y p l e d g e , L i e n , c h a r g e o r e n c u m b r a n c e t h e r e o n o r w i t h r e s p e c t t h e r e t o
p r i o r t o , o r o f e q u a l r a n k w i t h t h e l i e n o n t h e T r u s t E s t a t e c r e a t e d b y t h e M a s t e r I n d e n t u r e , o t h e r
t h a n a s p e r m i t t e d b y t h e M a s t e r I n d e n t u r e o r b y t h i s A g r e e m e n t , a n d a l l g o v e r n m e n t a l a c t i o n o n
t h e p a r t o f t h e B o r r o w e r t o t h a t e n d s h a l l b e d u l y a n d v a l i d l y t a k e n a t s u c h t i m e s . T h e B o r r o w e r
s h a l l a t a l l t i m e s , t o t h e e x t e n t p e r m i t t e d b y l a w , d e f e n d , p r e s e r v e a n d p r o t e c t t h e l i e n g r a n t e d
p u r s u a n t t o t h e M a s t e r I n d e n t u r e a n d t h e R C T C A c t a n d a l l t h e r i g h t s f o r t h e b e n e f i t o f t h e T I F I A
L e n d e r u n d e r t h e M a s t e r I n d e n t u r e a g a i n s t a l l c l a i m s a n d d e m a n d s o f a l l P e r s o n s w h o m s o e v e r ,
s u b j e c t t o P e r m i t t e d L i e n s .
( d ) C o p i e s o f D o c u m e n t s . T h e B o r r o w e r s h a l l f u r n i s h t o t h e T I F I A L e n d e r a
c o p y o f a n y o f f e r i n g d o c u m e n t a n d c a s h f l o w p r o j e c t i o n s p r e p a r e d i n c o n n e c t i o n w i t h t h e
i n c u r r e n c e o f a n y P e r m i t t e d D e b t , p r i o r t o t h e i n c u r r e n c e o f a n y s u c h P e r m i t t e d D e b t , a s w e l l a s
c o p i e s o f a n y c o n t i n u i n g d i s c l o s u r e d o c u m e n t s p e r t a i n i n g t o O b l i g a t i o n s , i n e a c h c a s e p r e p a r e d
o r f i l e d i n c o n n e c t i o n w i t h t h e a p p l i c a b l e 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 , i n
e a c h c a s e p r o m p t l y f o l l o w i n g t h e p r e p a r a t i o n o r f i l i n g t h e r e o f .
1 4 3 5 2 8 7 4 . 7
4 1
2 9 6
(e) Use of Proceeds. The Borrower shall use the proceeds of the TIFIA Loan •
only to pay, or to reimburse the Borrower for, Eligible Project Costs.
(f) Prosecution of Work. The Borrower shall diligently prosecute, or cause to
be prosecuted, the work relating to the Project and complete the Project in accordance with the
Construction Schedule, as the same may be revised, including, without limitation, the provisions
of Section 18(a)(iii) hereof, and in accordance with the standards required by the Toll Facility
Agreement and the Design-Build Contract, using its best efforts at all times.
(g) Operations and Maintenance. Borrower shall operate and maintain the
Toll Road in a reasonable and prudent manner and shall maintain the Toll Road in good repair,
working order and condition and shall from time-to-time make or cause to be made all necessary
and proper replacements, repairs, renewals and improvements so that the Toll Road shall not be
materially impaired. The Borrower shall at all times do or cause to be done all things necessary
to obtain, preserve, renew, extend and keep in full force and effect the rights, licenses, permits,
franchises and authorizations material to the conduct of its business, and comply in all material
respects with all applicable laws, rules, regulations, orders, decrees, judgments or administrative
decisions, whether now in effect or hereafter enacted, of any Governmental Authority having
jurisdiction over the Borrower or its assets or operations (including, without limitation, the
National Environmental Policy Act of 1969 (42 U.S.C. §4321 et seq.) and all other federal, state
and local laws, rules, regulations, orders, decrees, judgments and administrative decisions
relating to the environment, the preservation or reclamation of natural resources, the
management, release or threatened release of any hazardous material or to health and safety
matters). •
(h) Insurance. The Borrower shall at all times maintain or cause to be
maintained insurance on the Toll Road, with responsible insurers, as is customarily maintained in
the United States with respect to works and properties of like character, against accident to, loss
of or damage to such works or properties, and to the extent any requirements for such insurance
are set forth in the Master Indenture, such insurance shall comply with the Master Indenture.
The Borrower shall review with the TIFIA Lender and the FHW A California Division each
policy of insurance or certificates of insurance currently provided, or to be secured, under the
Design-Build Contract and where requested by the TIFIA Lender, cause the TIFIA Lender to be
included as an "additional insured" party for each such and endorsed thereon.
(i) Notice. The Borrower shall, within five (5) Business Days after the
Borrower learns of the occurrence, give the TIFIA Lender notice of any of the following events,
setting forth details of such event:
14352874.7
(i) Events of Default: any Event of Default or any event which, given
notice or the passage of time or both, would constitute an Event of Default;
(ii) Litigation: the filing of any actual litigation, suit or action, or the
delivery to the Borrower of any written claim, which could reasonably be
expected to have a Material Adverse Effect; and
42
297
•
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( i i i ) O t h e r A d v e r s e E v e n t s : t h e o c c u r r e n c e o f a n y o t h e r e v e n t o r
c o n d i t i o n , w h i c h c o u l d r e a s o n a b l y b e e x p e c t e d t o r e s u l t i n a M a t e r i a l A d v e r s e
E f f e c t .
( j ) R e m e d i e d A c t i o n . W i t h i n 3 0 c a l e n d a r d a y s a f t e r t h e B o r r o w e r l e a r n s o f
t h e o c c u r r e n c e o f a n e v e n t s p e c i f i e d i n S e c t i o n 1 5 ( i ) , t h e B o r r o w e r ' s A u t h o r i z e d R e p r e s e n t a t i v e
s h a l l p r o v i d e a s t a t e m e n t s e t t i n g f o r t h t h e a c t i o n s t h e B o r r o w e r p r o p o s e s t o t a k e w i t h r e s p e c t
t h e r e t o .
( k ) N o L i e n E x t i n g u i s h m e n t o r A d v e r s e A m e n d m e n t s . B o r r o w e r s h a l l n o t ,
w i t h o u t t h e p r i o r w r i t t e n c o n s e n t o f t h e T I F I A L e n d e r , e i t h e r ( i ) e x t i n g u i s h t h e l i e n o n t h e T r u s t
E s t a t e , e x c e p t a s p r o v i d e d u n d e r t h e M a s t e r I n d e n t u r e , ( i i ) a m e n d , m o d i f y , s u p p l e m e n t o r g r a n t
o r r e c e i v e a n y w a i v e r w i t h r e s p e c t t o a n y R e l a t e d D o c u m e n t i n a m a n n e r t h a t c o u l d a d v e r s e l y
a f f e c t t h e T I F I A L e n d e r i n c o n n e c t i o n w i t h t h e T I F I A L o a n o r ( i i i ) t e r m i n a t e , a s s i g n , a m e n d o r
m o d i f y , o r w a i v e t i m e l y p e r f o r m a n c e b y t h e B o r r o w e r o r a n y o t h e r p a r t y o f m a t e r i a l c o v e n a n t s
u n d e r , t h e D e s i g n - B u i l d C o n t r a c t o r a n y o t h e r P r i n c i p a l P r o j e c t C o n t r a c t e x c e p t f o r t e r m i n a t i o n ,
a s s i g n m e n t , a m e n d m e n t , m o d i f i c a t i o n o r w a i v e r t h a t c o u l d n o t r e a s o n a b l y b e e x p e c t e d t o 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 . E x c e p t a s o t h e r w i s e a g r e e d b y t h e T I F I A L e n d e r i n w r i t i n g , t h e
B o r r o w e r w i l l p r o v i d e t o t h e T I F I A L e n d e r c o p i e s o f a n y p r o p o s e d a m e n d m e n t s t o a n y R e l a t e d
D o c u m e n t a t l e a s t 3 0 d a y s p r i o r t o t h e e f f e c t i v e d a t e t h e r e o f .
( 1 ) M a i n t a i n L e g a l S t r u c t u r e . T o t h e f u l l e s t e x t e n t p e r m i t t e d b y l a w , t h e
B o r r o w e r s h a l l m a i n t a i n i t s l e g a l e x i s t e n c e
( m ) A n n u a l R a t i n g . T h e B o r r o w e r s h a l l , c o m m e n c i n g i n 2 0 1 4 , n o l a t e r t h a n
t h e l a s t B u s i n e s s D a y o f D e c e m b e r o f e a c h y e a r o v e r t h e t e r m o f t h e T I F I A L o a n , a t n o c o s t t o
t h e T I F I A L e n d e r , p r o v i d e t o t h e T I F I A L e n d e r a r a t i n g b y a N a t i o n a l l y R e c o g n i z e d R a t i n g
A g e n c y o n t h e T I F I A L o a n a n d t h e e x i s t i n g r a t i n g s o n a n y S e n i o r O b l i g a t i o n s .
( n ) S e n i o r L i e n B o n d R e s e r v e F u n d , P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s
R e s e r v e F u n d a n d S u b o r d i n a t e O b l i g a t i o n s R e s e r v e F u n d .
T h e B o r r o w e r s h a l l m a i n t a i n t h e S e n i o r L i e n B o n d R e s e r v e F u n d i n a n a m o u n t
e q u a l t o t h e S e n i o r L i e n B o n d R e s e r v e F u n d R e q u i r e m e n t 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 M a s t e r I n d e n t u r e a n d t h e a p p l i c a b l e S u p p l e m e n t a l I n d e n t u r e . A m o u n t s i n t h e S e n i o r L i e n
B o n d D e b t S e r v i c e R e s e r v e A c c o u n t s h a l l b e m a d e a v a i l a b l e t o e n s u r e t h e t i m e l y p a y m e n t o f
a n y A n n u a l D e b t S e r v i c e o n S e n i o r O b l i g a t i o n s i n a c c o r d a n c e w i t h t h e M a s t e r I n d e n t u r e . T h e
B o r r o w e r m a y r e p l a c e a l l o r a p o r t i o n o f t h e r e q u i r e d b a l a n c e t h e r e o f , i n a c c o r d a n c e w i t h t h e
t e r m s o f t h e M a s t e r I n d e n t u r e , w i t h a n i r r e v o c a b l e l e t t e r o f c r e d i t , i n s u r a n c e p o l i c y o r s i m i l a r
i n s t r u m e n t p r o v i d e d b y a f i n a n c i a l i n s t i t u t i o n w i t h a l o n g - t e r m c r e d i t r a t i n g a t t h e t i m e o f i n i t i a l
d e l i v e r y o f a n y s u c h i n s t r u m e n t i n o n e o f t h e t o p t w o R a t i n g C a t e g o r i e s .
T h e B o r r o w e r s h a l l m a i n t a i n t h e P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s B o n d R e s e r v e F u n d
i n a n a m o u n t e q u a l t o t h e P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s R e s e r v e F u n d R e q u i r e d B a l a n c 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 e M a s t e r I n d e n t u r e a n d t h e a p p l i c a b l e S u p p l e m e n t a l
I n d e n t u r e . A m o u n t s i n t h e P e r m i t t e d S e c o n d L i e n O b l i g a t i o n s R e s e r v e A c c o u n t s h a l l b e m a d e
a v a i l a b l e t o e n s u r e t h e t i m e l y p a y m e n t o f a n y A n n u a l D e b t S e r v i c e o n a n y P e r m i t t e d S e c o n d
1 4 3 5 2 8 7 4 . 7
4 3
2 9 8
Lien Obligation. The Borrower may replace all or a portion of the required balance thereof, in •
accordance with the terms of the Master Indenture, with an irrevocable letter of credit, insurance
policy or similar instrument provided by a financial institution with a long-term credit rating at
the time of initial delivery of any such instrument in one of the top two Rating Categories.
The Borrower agrees that the Subordinate Obligations Reserve Fund shall be funded at
the Subordinate Obligations Reserve Fund Required Balance no later than July I, 2019 from
ROW Revenues, and if such ROW Revenues are insufficient therefor, from Sales Tax
Revenues. The Borrower shall maintain the Subordinate Obligations Reserve Fund in an
amount equal to the Subordinate Obligations Reserve Fund Required Balance in accordance
with the provisions of the Master Indenture, the Second Supplemental Indenture and this
Agreement.
( o) Rate Covenant. The Borrower covenants that it shall at all times,
commencing in the first full Borrower Fiscal Year following the Substantial Completion Date,
establish, levy, maintain and collect tolls in connection with the Toll Road and establish such
charges for use of the property constituting part of the Toll Road, including, without limitation
and as permitted by law,· leasehold payments, concession payments, rents and other charges, as
shall be sufficient, collectively, to produce Net Revenue in each Borrower Fiscal Year, in an
amount at least equal to the greatest of(l), (2), or (3) below:
(1) one hundred fifty percent (150%) of the Annual Debt Service in
such Borrower Fiscal Year on all Outstanding Senior Obligations; or
(2) one hundred thirty percent (130%) of the Annual Debt Service in
such Borrower Fiscal Year on all Outstanding Senior Obligations and Permitted Second
Lien Obligations; or
(3) one hundred percent (100%) of the Annual Debt Service in such
Borrower Fiscal Year on all Outstanding Obligations, plus the amounts required to be
deposited into the Senior Lien Bond Reserve Fund, the Permitted Second Lien
Obligations Reserve Fund, the Subordinate Obligations Reserve Fund, the Capital
Expenditures Fund and the Repair and Rehabilitation Fund and any other Fund
established by a Supplemental Indenture to be funded by Revenue.
In making the calculations in (1), (2), and (3) above, the Borrower may take into
consideration as a credit against Annual Debt Service any amounts received, or reasonably
expected to be received, in the Borrower Fiscal Year from or as a result of any additional
security irrevocably granted or pledged to the Bondholders by the Borrower with respect to the
Obligations; [provided, that if the pledge is not for the benefit of all Obligations, the amounts
expected to be received may only be taken into account when making the calculation for the
affected Obligations.]
•
Beginning in the first full Borrower Fiscal Year following the commencement of toll
collections by the Borrower for use of the Toll Road pursuant to the OCTA Cooperative
Agreement, the Borrower covenants: (i) to compute projected Net Revenue for each Borrower
Fiscal Year and the projected ratios described in clauses (1), (2) and (3) above (the greatest of •
44
14352874.7
299
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c l a u s e ( 1 ) , ( 2 ) a n d ( 3 ) i n a n y B o r r o w e r F i s c a l Y e a r s h a l l b e t h e " C o v e r a g e R a t i o " f o r s u c h
B o r r o w e r F i s c a l Y e a r ) w i t h i n t e n B u s i n e s s D a y s a f t e r t h e b e g i n n i n g o f t h a t B o r r o w e r F i s c a l Y e a r
( s u c h d a t e o f c o m p u t a t i o n b e i n g h e r e i n a f t e r r e f e r r e d t o a s a " C o v e r a g e C a l c u l a t i o n D a t e " ) ; ( i i ) t o
f u r n i s h p r o m p t l y t o 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 B o r r o w e r s e t t i n g f o r t h t h e r e s u l t s o f s u c h
c o m p u t a t i o n s ; a n d ( i i i ) i f a n y C o v e r a g e R a t i o i s l e s s t h a n t h e r e q u i r e d C o v e r a g e R a t i o t o t a k e
s u c h a c t i o n a s p r o m p t l y a s p r a c t i c a b l e a f t e r t h e C o v e r a g e C a l c u l a t i o n D a t e ( 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 , i n c r e a s i n g T o l l R e v e n u e s t h r o u g h t o l l i n c r e a s e s ) a s t h e B o r r o w e r p r o j e c t s i s n e c e s s a r y
t o c a u s e t h e p r o j e c t e d C o v e r a g e R a t i o s f o r e a c h B o r r o w e r F i s c a l Y e a r t o e q u a l o r e x c e e d t h e
a p p l i c a b l e C o v e r a g e R a t i o f o r e a c h s u c h B o r r o w e r F i s c a l Y e a r .
W i t h i n 6 0 d a y s a f t e r t h e e n d o f e a c h B o r r o w e r F i s c a l Y e a r ( b e g i n n i n g w i t h t h e s e c o n d
B o r r o w e r F i s c a l Y e a r f o l l o w i n g t h e c o m m e n c e m e n t o f t o l l c o l l e c t i o n s b y t h e B o r r o w e r f o r u s e o f
t h e T o l l R o a d p u r s u a n t t o t h e C o o p e r a t i v e A g r e e m e n t ) , t h e B o r r o w e r w i l l f i l e w i t h t h e T r u s t e e a
r e p o r t s e t t i n g f o r t h t h e N e t R e v e n u e f o r s u c h B o r r o w e r F i s c a l Y e a r . T h e f a i l u r e o f t o l l r a t e s t o
y i e l d a n a m o u n t s u f f i c i e n t t o a c h i e v e t h e C o v e r a g e R a t i o f o r s u c h B o r r o w e r F i s c a l Y e a r s h a l l n o t
b e d e e m e d t o c o n s t i t u t e a n E v e n t o f D e f a u l t s o l o n g a s t h e B o r r o w e r c o m p l i e s w i t h t h e
r e q u i r e m e n t s s e t f o r t h i n t h i s S e c t i o n 1 5 ( o ) . I f a n y s u c h r e p o r t i n d i c a t e s t h a t t h e N e t R e v e n u e f o r
s u c h B o r r o w e r F i s c a l Y e a r w e r e l e s s t h a n t h e a m o u n t r e q u i r e d t o s a t i s f y t h e a p p l i c a b l e C o v e r a g e
R a t i o , t h e n a s s o o n a s p r a c t i c a b l e a f t e r d e l i v e r i n g s u c h r e p o r t t o t h e T r u s t e e a n d t h e T I F I A
L e n d e r , t h e B o r r o w e r s h a l l e m p l o y a T r a f f i c C o n s u l t a n t t o r e v i e w a n d a n a l y z e t h e o p e r a t i o n s o f
t h e T o l l R o a d a n d t o s u b m i t t o t h e B o a r d , a s s o o n a s p r a c t i c a b l e ( b u t n o t l a t e r t h a n s u c h d a t e a s
w i l l e n a b l e t h e B o a r d t o a c t u p o n i t w i t h i n 1 8 0 d a y s a f t e r t h e e n d o f t h e B o r r o w e r F i s c a l Y e a r i n
q u e s t i o n ) , a w r i t t e n r e p o r t w h i c h s h a l l i n c l u d e t h e a c t i o n s t h a t t h e T r a f f i c C o n s u l t a n t
r e c o m m e n d s s h o u l d b e t a k e n b y t h e B o r r o w e r w i t h r e s p e c t t o ( i ) r e v i s i n g t h e t o l l r a t e s , ( i i )
a l t e r i n g i t s m e t h o d s o f o p e r a t i o n , o r ( i i i ) t a k i n g o t h e r a c t i o n p r o j e c t e d t o p r o d u c e t h e a m o u n t s o
r e q u i r e d i n t h e f o l l o w i n g t w e l v e m o n t h p e r i o d , ( o r , i f l e s s , t h e m a x i m u m a m o u n t d e e m e d
f e a s i b l e b y t h e T r a f f i c C o n s u l t a n t a n d t h a t t h e T r a f f i c C o n s u l t a n t e s t i m a t e s w i l l n o t a d v e r s e l y
a f f e c t t h e a m o u n t o f N e t R e v e n u e ) . P r o m p t l y u p o n i t s r e c e i p t o f s u c h w r i t t e n r e p o r t ( a n d , i n a n y
c a s e , w i t h i n 1 8 0 d a y s a f t e r t h e e n d o f t h e B o r r o w e r F i s c a l Y e a r i n q u e s t i o n ) , a f t e r g i v i n g d u e
c o n s i d e r a t i o n t h e r e t o , t h e B o r r o w e r w i l l r e v i s e t h e t o l l r a t e s , a s p e r m i t t e d b y l a w , a l t e r i t s
m e t h o d s o f o p e r a t i o n , o r t a k e s u c h o t h e r a c t i o n a s i t d e e m s a p p r o p r i a t e . S u c h r e v i s i o n s ,
a l t e r a t i o n s , o r a c t i o n s n e e d n o t c o m p l y w i t h t h e r e c o m m e n d a t i o n s o f t h e T r a f f i c C o n s u l t a n t s o
l o n g a s N e t R e v e n u e p r o j e c t e d b y t h e T r a f f i c C o n s u l t a n t t o b e p r o d u c e d b y t h e r e v i s i o n s ,
a l t e r a t i o n s o r a c t i o n s t h e n t a k e n b y t h e B o r r o w e r a r e a t l e a s t e q u a l t o t h e a m o u n t r e q u i r e d
h e r e i n a b o v e .
T h e B o r r o w e r f u r t h e r c o v e n a n t s t h a t s u c h t o l l r a t e s f o r t r a f f i c u s i n g t h e T o l l R o a d w i l l b e
e s t a b l i s h e d a n d m a i n t a i n e d i n a r e a s o n a b l e w a y t o c o v e r a l l t r a f f i c ( o t h e r t h a n v e h i c l e s u s e d f o r
m a i n t a i n i n g t h e T o l l R o a d ; p o l i c e , f i r e , a n d o t h e r p u b l i c e m e r g e n c y v e h i c l e s ; b u s e s o w n e d a n d
o p e r a t e d b y a n y p u b l i c a g e n c y ; v e h i c l e s w i t h m u l t i p l e p a s s e n g e r s o r w h i c h a l l o w f o r a l i m i t e d
n u m b e r s o f p a s s e n g e r s , i n c l u d i n g m o t o r c y c l e s , a c c o r d i n g t o p o l i c i e s d e t e r m i n e d b y t h e S t a t e o r
t h e B o r r o w e r ; e l e c t r i c , h y b r i d - e l e c t r i c a n d o t h e r v e h i c l e s t h a t m e e t e m i s s i o n - r e d u c t i o n p o l i c i e s
d e t e r m i n e d b y t h e S t a t e o r t h e B o r r o w e r ; v e h i c l e s w h i c h a r e o t h e r w i s e e x e m p t f r o m p a y m e n t o f
t o l l s u n d e r S t a t e o r f e d e r a l l a w ; a n d a n y v e h i c l e s d u r i n g a p u b l i c e m e r g e n c y d e c l a r e d b y t h e
B o r r o w e r ) c o n s i s t e n t w i t h t h e r e q u i r e m e n t s h e r e o f , b u t w i t h s u c h c l a s s i f i c a t i o n s a s t h e B o r r o w e r
m a y d e e m a p p r o p r i a t e .
1 4 3 5 2 8 7 4 _ 7
4 5
3 0 0
Notwithstanding any provision to the contrary, nothing in this Section 15( o) shall be
deemed to require the Borrower to collect tolls and other fees with respect to which the Borrower •
has determined, based upon a report from a Traffic Consultant, that the costs of collection would
exceed the amount of tolls and other fees expected to be collected; and provided further that
nothing contained in this Section 15( o) shall prevent the Borrower from temporarily reducing or
eliminating tolls and other fees in connection with programs which it intends to use to increase
Net Revenue.
(p) No Prohibited Liens. The Borrower will not create, incur, assume or
permit to exist any Lien on the Toll Road or on any property or asset now owned or hereafter
acquired by the Borrower, except Permitted Liens or assign or sell any income or revenue
including accounts receivable or rights in respect of any thereof.
( q) TIFIA Loan Prepayment. Pursuant to Section [ ] of the Master Indenture
and Section 8( e) of this Agreement, beginning on the first Semi-Annual Payment Date following
the TIFIA Loan Prepayment Commencement Date, 50% of amount in the Residual Fund after
giving effect to the payments in clauses (i) through (xv) of Section 8(e) of this Agreement (the
"TIFIA Loan Prepayment Amount") shall be transferred to the Subordinate Obligations
Prepayment Account. On the last Business Day of each January (or on the next Business Day of
such date is not Business Day) on and after the TIFIA Loan Prepayment Commencement Date,
the Borrower shall cause the Trustee to transfer amounts on deposit in the Subordinate
Obligations Prepayment Account to the TIFIA Lender to prepay the TIFIA Loan.
(r) Copies of Additional Project Contracts. The Borrower shall provide a
copy of each Additional Project Contract to the TIFIA Lender promptly after execution thereof.
(s) Hedging. (i) To protect against fluctuations in interest rates, the Borrower
shall make arrangements for a Qualified Hedge to be in place and maintained at all times with
respect to the [Senior Obligations] during any period in which the Senior Obligations bear
interest at a Variable Interest Rate. The Borrower, at all times when the TIFIA Loan is
outstanding, shall have in full force and effect Qualified Hedges with an aggregate notional
amount of not less than 98% of the aggregate principal amount of the Variable Interest Rate
Obligations projected by the Borrower from time-to-time to be outstanding during the term of the
TIFIA Loan and (x) at least 98% of the notional amount of such Qualified Hedges shall be
subject to a Qualified Hedge with a stated maturity or termination date not earlier than the final
maturity date of the TIFIA Loan and (y) the notional amount of the balance of such Qualified
Hedges shall be subject to a Qualified Hedge with a stated maturity or termination date of at least
one year.
(ii) Each Qualified Hedge shall provide for a fixed interest rate or interest rate
•
cap resulting in Fixed Amortization Payment amounts payable by the Borrower which, when
taken together with the Bank Lending Margin, shall be a rate which is less than or equal to the
Loan Underwriting Rate. The Borrower's obligations to pay (a) any payments required in
connection with the acquisition of a Qualified Hedge to assure that the fixed interest rate to be
paid by the Borrower or interest rate cap provided to the Borrower under the Qualified Hedge,
together with the Bank Lending Margin, shall be at or below the Loan Underwriting Rate,
(b) Hedging Obligations and (c) Hedging Termination Obligations shall be from the sources and •
14352874.7
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i n t h e p r i o r i t y s p e c i f i e d i n t h e M a s t e r I n d e n t u r e . E a c h Q u a l i f i e d H e d g e s h a l l b e s e c u r e d a n d
d o c u m e n t e d o n t e r m s a n d c o n d i t i o n s s u b s t a n t i a l l y s i m i l a r t o 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 n i t i a l Q u a l i f i e d H e d g e u n l e s s o t h e r w i s e a p p r o v e d b y t h e T I F I A L e n d e r ( t h e " H e d g e
D o c u m e n t s " ) . T h e B o r r o w e r s h a l l e n s u r e t h a t , a s o f t h e d a y f o l l o w i n g t h e t e r m i n a t i o n d a t e o f
a n y Q u a l i f i e d H e d g e , e i t h e r ( a ) a S u b s e q u e n t Q u a l i f i e d H e d g e ( a s d e f i n e d b e l o w ) i s i n f u l l f o r c e
a n d e f f e c t t o t h e e x t e n t t h e [ S e n i o r O b l i g a t i o n s ] b e a r i n t e r e s t a t a V a r i a b l e I n t e r e s t R a t e o r ( b ) t h e
V a r i a b l e I n t e r e s t R a t e O b l i g a t i o n s h a v e b e e n c o n v e r t e d t o a f i x e d r a t e , i n e a c h c a s e i n
a c c o r d a n c e w i t h t h i s A g r e e m e n t a n d t h e S e n i o r L o a n A g r e e m e n t .
( i i i ) A n y Q u a l i f i e d H e d g e e n t e r e d i n t o s u b s e q u e n t t o t h e I n i t i a l Q u a l i f i e d
H e d g e ( a " S u b s e q u e n t Q u a l i f i e d H e d g e " ) s h a l l ( 1 ) c o m m e n c e n o l a t e r t h a n t h e t e r m i n a t i o n d a t e
o f t h e Q u a l i f i e d H e d g e w h i c h i s t e r m i n a t i n g a n d t e r m i n a t e n o e a r l i e r t h a n t h e d a t e w h i c h i s t h e
f i r s t ( 1 5 1
) a n n i v e r s a r y o f t h e e f f e c t i v e d a t e o f s u c h S u b s e q u e n t Q u a l i f i e d H e d g e o r ( 2 ) c o m m e n c e
n o l a t e r t h a n t h e t e r m i n a t i o n d a t e o f t h e e x i s t i n g Q u a l i f i e d H e d g e a n d t e r m i n a t e n o e a r l i e r t h a n
t h e f i n a l m a t u r i t y d a t e o f t h e V a r i a b l e I n t e r e s t R a t e O b l i g a t i o n s .
( i v ) N o l a t e r t h a n t h i r t y d a y s p r i o r t o t h e B o r r o w e r s e e k i n g a n y b i d s f r o m a n y
Q u a l i f i e d H e d g e P r o v i d e r f o r a S u b s e q u e n t Q u a l i f i e d H e d g e , t h e B o r r o w e r s h a l l o b t a i n t h e
w r i t t e n c o n s e n t o f t h e T I F I A L e n d e r t o t h e e f f e c t t h a t t h e p r o c e s s f o r s e l e c t i n g a S u b s e q u e n t
Q u a l i f i e d H e d g e i s a c o m p e t i t i v e p r o c e s s d e s i g n e d t o o b t a i n a f a i r m a r k e t p r i c e a n d t o a v o i d
c o n f l i c t s o f i n t e r e s t . A t t h e t i m e t h e S u b s e q u e n t Q u a l i f i e d H e d g e i s p r i c e d , t h e B o r r o w e r s h a l l
p r o v i d e t o t h e T I F I A L e n d e r a c e r t i f i c a t e f r o m a q u a l i f i e d t h i r d p a r t y a c c e p t a b l e t o t h e T I F I A
L e n d e r t o t h e e f f e c t t h a t e i t h e r t h e u n d e r l y i n g L I B O R b a s e d f i x e d r a t e o r t h e p r i c e o f a c q u i r i n g a
S u b s e q u e n t Q u a l i f i e d H e d g e i s a f a i r p r i c e b a s e d o n t h e i n t e r e s t r a t e m a r k e t a t t h e t i m e s u c h
Q u a l i f i e d H e d g e i s p r i c e d .
( v ) T h e T r u s t e e s h a l l b e g r a n t e d a s e c u r i t y i n t e r e s t i n e a c h Q u a l i f i e d H e d g e
a n d p a y m e n t s d u e u n d e r e a c h Q u a l i f i e d H e d g e i n o r d e r t o s e c u r e t h e B o r r o w e r ' s o b l i g a t i o n s t o
t h e T I F I A L e n d e r u n d e r t h i s A g r e e m e n t . T h e H e d g e D o c u m e n t s s h a l l p r o v i d e t h a t a l l p a y m e n t s
d u e t h e r e u n d e r t o t h e B o r r o w e r s h a l l b e m a d e d i r e c t l y t o t h e T r u s t e e f o r d e p o s i t a n d
d i s b u r s e m e n t i n a c c o r d a n c e w i t h t h e M a s t e r I n d e n t u r e .
( v i ) T h e B o r r o w e r s h a l l n e i t h e r t e r m i n a t e ( o t h e r t h a n P e r m i t t e d H e d g i n g
T e r m i n a t i o n s ) , t r a n s f e r n o r c o n s e n t t o a n y t r a n s f e r ( o t h e r t h a n t o a Q u a l i f i e d H e d g e P r o v i d e r ) o f
a n y e x i s t i n g Q u a l i f i e d H e d g e w i t h o u t t h e T I F I A L e n d e r ' s p r i o r w r i t t e n c o n s e n t a s l o n g a s t h e
B o r r o w e r i s r e q u i r e d t o m a i n t a i n a Q u a l i f i e d H e d g e p u r s u a n t t o t h i s A g r e e m e n t .
1 4 3 5 2 8 7 4 . 7
( v i i ) H e d g e D e p o s i t s .
( A ) T h e B o r r o w e r s h a l l b e r e q u i r e d t o e s t a b l i s h a n a c c o u n t u n d e r t h e
M a s t e r I n d e n t u r e ( t h e " H e d g i n g A c q u i s i t i o n A c c o u n t " ) a n d m a k e p a y m e n t s t o t h e
T r u s t e e ( e a c h a " H e d g e D e p o s i t " ) f o r d e p o s i t i n t o t h e H e d g i n g A c q u i s i t i o n
A c c o u n t ( 1 ) o n t h e C a l c u l a t i o n D a t e o c c u r r i n g t w e l v e m o n t h s p r i o r t o e n t e r i n g
i n t o e a c h S u b s e q u e n t Q u a l i f i e d H e d g e w i t h a r e m a i n i n g t e r m o f o n e y e a r o r l e s s
( a " S h o r t T e r m Q u a l i f i e d H e d g e " ) a n d ( 2 ) o n e a c h o f t h e C a l c u l a t i o n D a t e s
o c c u r r i n g t w e l v e a n d s i x m o n t h s p r i o r t o e n t e r i n g i n t o S u b s e q u e n t Q u a l i f i e d
4 7
3 0 2
14352874.7
Hedge with a remaining term of greater than one year (a "Long Dated Qualified •
Hedge").
(B) The Hedge Deposit for a Short Term Qualified Hedge shall be the
mid-market amount estimated by the Borrower at that time to be necessary to
purchase, at the scheduled termination of the then existing Qualified Hedge; a
Subsequent Qualified Hedge obligating the Borrower to make payments based on
a fixed rate of interest or interest rate cap equal to or less than the Loan
Underwriting Rate minus the Bank Lending Margin for a period of one year or
less having a notional amount equal to the principal amount of the Variable
Interest Rate Obligations projected to be outstanding during the term of such
Qualified Hedge.
(C) The first Hedge Deposit for a Long Dated Qualified Hedge shall be
the mid-market amount estimated by the Borrower at that time to be necessary to
provide one-half of the funds needed to purchase, at the scheduled termination of
the then existing Qualified Hedge, a Subsequent Qualified Hedge obligating the
Borrower. to make payments based on a fixed rate of interest or interest rate cap
equal to or less than the Loan Underwriting Rate minus the Bank Lending Margin
for a period of greater than one ( 1) year having a notional amount equal to the
principal amount of the Variable Interest Rate Obligations projected to be
outstanding during the term of such Qualified Hedge. The second Hedge Deposit
for a Long Dated Qualified Hedge shall be the mid-market amount, if any,
estimated by the Borrower at that time to be necessary, when added to the amount •
deposited fm: the first Hedge Deposit for a Long Dated Qualified Hedge, to
purchase, at the scheduled termination date of the then existing Qualified Hedge,
a Subsequent Qualified Hedge obligating the Borrower to make payments based
on a fixed rate of interest or interest rate cap equal to or less than the Loan
Underwriting Rate minus the Bank Lending Margin for a period of greater than
one (1) year, having a notional amount equal to the principal amount of the
Variable Interest Rate Obligations projected to be outstanding during the term of
such Qualified Hedge.
(D) For the purpose of determining the required Hedge Deposits, the
Borrower shall provide the anticipated notional amounts of the Subsequent
Qualified Hedge to a qualified third party who shall in tum calculate the amount
of the Hedge Deposit in accordance with (vii) (B) and (C) above. The Borrower
shall select, subject to the TIFIA Lender's approval, the qualified third party at
least 15 days prior to the applicable Calculation Date.
1. The Borrower's obligation to make any Hedge Deposit
payments shall be from the sources and in the priority specified in
Article V of the Master Indenture.
2. Provided that no Event of Default has occurred and is
continuing, funds on deposit in the Hedging Acquisition Account shall be •
applied towards the purchase of a Subsequent Qualified Hedges. Any
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r e m a m m g b a l a n c e i n t h e H e d g i n g A c q u i s i t i o n A c c o u n t a f t e r s u c h
p u r c h a s e w h i c h e x c e e d s t h e a m o u n t r e q u i r e d t o s a t i s f y t h e H e d g e D e p o s i t
r e q u i r e m e n t s i n t h i s c l a u s e ( v i i ) s h a l l b e t r a n s f e r r e d t o t h e P l e d g e d
R e v e n u e s A c c o u n t , a s p r o v i d e d i n t h e M a s t e r I n d e n t u r e .
( t ) N o P r o h i b i t e d S a l e o r A s s i g n m e n t . E x c e p t t o t h e e x t e n t p e r m i t t e d b y
S e c t i o n 6 . 0 6 o f t h e M a s t e r I n d e n t u r e , t h e B o r r o w e r s h a l l n o t s e l l o r a s s i g n a l l o r s u b s t a n t i a l l y a l l
o f i t s r i g h t s i n a n d t o t h e T o l l R o a d w i t h o u t t h e w r i t t e n c o n s e n t o f t h e T I F I A L e n d e r a n d s h a l l
n o t s e l l o r a s s i g n i t s r i g h t s a n d o b l i g a t i o n s u n d e r t h i s A g r e e m e n t u n l e s s s u c h s a l e o r a s s i g n m e n t
i s n o t e x p e c t e d t o r e s u l t i n a M a t e r i a l A d v e r s e E f f e c t a n d i s u p o n t e r m s a n d c o n d i t i o n s a p p r o v e d
i n w r i t i n g b y t h e T I F I A L e n d e r i n i t s s o l e d i s c r e t i o n .
( u ) M a t e r i a l O b l i g a t i o n s . T h e B o r r o w e r w i l l p a y i t s m a t e r i a l o b l i g a t i o n s
p r o m p t l y a n d i n a c c o r d a n c e w i t h t h e i r t e r m s a n d p a y a n d d i s c h a r g e p r o m p t l y a l l m a t e r i a l t a x e s ,
a s s e s s m e n t s a n d g o v e r n m e n t a l c h a r g e s o r l e v i e s i m p o s e d u p o n i t o r u p o n i t s i n c o m e o r p r o f i t s
o r i n r e s p e c t o f i t s p r o p e r t y , b e f o r e t h e s a m e s h a l l b e c o m e d e l i n q u e n t o r i n d e f a u l t , a s w e l l a s a l l
l a w f u l a n d m a t e r i a l c l a i m s f o r l a b o r , m a t e r i a l s a n d s u p p l i e s o r o t h e r c l a i m s w h i c h , i f u n p a i d ,
m i g h t g i v e r i s e t o a L i e n u p o n s u c h p r o p e r t i e s o r a n y p a r t t h e r e o f ; p r o v i d e d , h o w e v e r , t h a t s u c h
p a y m e n t a n d d i s c h a r g e s h a l l n o t b e r e q u i r e d w i t h r e s p e c t t o a n y s u c h t a x , a s s e s s m e n t , c h a r g e ,
l e v y o r c l a i m s o l o n g a s t h e v a l i d i t y o r a m o u n t t h e r e o f s h a l l b e c o n t e s t e d b y t h e B o r r o w e r i n
g o o d f a i t h b y a p p r o p r i a t e p r o c e e d i n g s a n d s o l o n g a s t h e B o r r o w e r s h a l l , t o t h e e x t e n t r e q u i r e d
G A A P o n a c o n s i s t e n t b a s i s , s e t a s i d e o n i t s b o o k s a d e q u a t e r e s e r v e s w i t h r e s p e c t t h e r e t o .
( v ) B o r r o w e r F i s c a l Y e a r . T h e B o r r o w e r w i l l n o t a t a n y t i m e a d o p t a n y f i s c a l
y e a r o t h e r t h a n t h e B o r r o w e r F i s c a l Y e a r , e x c e p t u p o n w r i t t e n n o t i c e t o t h e T I F I A L e n d e r .
( w ) N o P r o h i b i t e d B u s i n e s s . T h e B o r r o w e r w i l l n o t a t a n y t i m e e n g a g e i n a n y
b u s i n e s s o r a c t i v i t y o t h e r t h a n a s a u t h o r i z e d t h e l a w s o f t h e S t a t e .
( x ) P r i n c i p a l P r o j e c t C o n t r a c t s . T h e B o r r o w e r ( i ) w i l l c o m p l y w i t h e a c h o f
t h e P r i n c i p a l P r o j e c t C o n t r a c t s i n a l l m a t e r i a l r e s p e c t s a n d ( i i ) s h a l l n o t t e r m i n a t e a P r i n c i p a l
P r o j e c t C o n t r a c t w i t h o u t t h e T I F I A L e n d e r ' s c o n s e n t .
( y ) O p e r a t i o n s a n d M a i n t e n a n c e C o s t s . T h e B o r r o w e r s h a l l n o t i n c r e a s e i n
a n y y e a r t h e a m o u n t o f P r o j e c t O p e r a t i n g a n d M a i n t e n a n c e E x p e n s e s b y m o r e t h a n 1 0 % o v e r
t h e a m o u n t s h o w n f o r s u c h e x p e n d i t u r e s i n t h e p r i o r y e a r a s s h o w n i n t h e B a s e C a s e F i n a n c i a l
M o d e l , w i t h o u t t h e T I F I A L e n d e r ' s p r i o r w r i t t e n c o n s e n t . N o c o n s e n t s h a l l b e r e q u i r e d f o r t h e
f o l l o w i n g p u r p o s e s , p r o v i d e d t h a t t h e B o r r o w e r s u b m i t s a w r i t t e n e x p l a n a t i o n f o r t h e i n c r e a s e
o v e r 1 0 % t o g e t h e r w i t h a c e r t i f i c a t i o n f r o m a C o n s u l t i n g E n g i n e e r s t a t i n g t h a t s u c h
e x p e n d i t u r e s w e r e n e c e s s a r y a n d p e r m i t t e d h e r e u n d e r : ( i ) r e a s o n a b l y u n f o r e s e e n e x p e n d i t u r e s
t o t h e e x t e n t n e c e s s a r y t o p a y f o r c o m p l i a n c e w i t h e m e r g e n c y e x p e n s e s ; ( i i ) r e a s o n a b l y
u n f o r e s e e n e x p e n d i t u r e s t o t h e e x t e n t n e c e s s a r y t o b e m a d e t o c a u s e t h e P r o j e c t t o b e i n
c o m p l i a n c e w i t h a n y a p p l i c a b l e m a n d a t o r y r e q u i r e m e n t i m p o s e d b y a G o v e r n m e n t a l A u t h o r i t y ;
o r ( i i i ) e x p e n d i t u r e s n e c e s s a r y t o b e i n c o m p l i a n c e w i t h S e c t i o n 6 . 0 5 o f t h e M a s t e r I n d e n t u r e .
( z ) E x e c u t i o n a n d D e l i v e r y o f A g r e e m e n t s a f t e r t h e E f f e c t i v e D a t e . T h e
B o r r o w e r s h a l l , a s s o o n a s r e a s o n a b l y p r a c t i c a b l e , c a u s e a n y o f t h e P r i n c i p a l P r o j e c t C o n t r a c t s
1 4 3 5 2 8 7 4 . 7
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not executed as of the Effective Date to be executed, in form and substance acceptable to the
TIFIA Lender as evidenced by the TIFIA Lender's written approval thereof, and shall deliver •
certified copies thereof to the TIFIA Lender.
(aa) Repair and Replacement Reserve Fund Requirements. The Borrower
covenants to comply with applicable requirements of the Master Indenture relating to the
funding of, and application of amounts on deposit in the Repair and Replacement Reserve Fund.
SECTION 17. Indemnification. To the extent authorized by law, the Borrower shall
indemnify the TIFIA Lender and any official, employee, agent or representative of the TIFIA
Lender (each such Person being herein referred to as an "Indemnitee") against, and hold each
Indemnitee harmless from, any and all losses, claims, damages, liabilities, fines, penalties, costs
and expenses (including, without limitation, the fees, charges and disbursements of any counsel
for any Indemnitee and the costs of environmental remediation), whether known, unknown,
contingent or otherwise, incurred by or asserted against any Indemnitee arising out of, in
connection with, or as a result of (i) the execution, delivery and performance of this Agreement
or any of the Related Documents, (ii) the TIFIA Loan or the use of the proceeds thereof, or
(iii) the violation of any law, rule, regulation, order, decree, judgment or administrative decision
relating to the environment, the preservation or reclamation of natural resources, the
management, release or threatened release of any hazardous material or to health and safety
matters; in each case arising out of or in direct relation to the Project; provided that such
indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims,
damages, liabilities or related expenses are determined by a court of competent jurisdiction by ·
final and nonappealable judgment to have resulted from the gross negligence or willful
misconduct of such Indemnitee. In case any action or proceeding is brought against an
Indemnitee by reason of any claim with respect to which such Indemnitee is entitled to
indemnification hereunder, the Borrower upon notice from such Indemnitee shall defend the
same and such Indemnitee shall cooperate with the Borrower at the expense of the Borrower in
connection therewith. Nothing herein shall be construed as a waiver of any legal immunity that
may be available to any Indemnitee. To the extent permitted by applicable law, the Borrower
shall not assert, and hereby waives, any claim against any Indemnitee, on any theory of liability,
for special, indirect, consequential or punitive damages (as opposed to direct or actual damages)
arising out of, in connection with, or as a result of, this Agreement, any of the Related
Documents, the TIFIA Loan and the other transactions contemplated hereby and thereby, or the
use of the proceeds thereof. All amounts due to any Indemnitee under this Section shall be
payable promptly upon demand therefor. The obligations of the Borrower under this
Section shall survive the payment or prepayment in full or transfer of the TIFIA Bond, the
enforcement of any provision of this Agreement or the Related Documents, any amendments,
waivers (other than amendments or waivers in writing with respect to this Section) or consents in
respect hereof or thereof, any Event of Default, and any workout, restructuring or similar
arrangement of the obligations of the Borrower hereunder or thereunder.
SECTION 18. Sale of TIFIA Loan. The TIFIA Lender shall not sell the TIFIA Loan at
any time prior to the date of Substantial Completion. After such date, the TIFIA Lender may sell
the TIFIA Loan to another entity or reoffer the TIFIA Loan into the capital markets only in
accordance with the provisions of this Section. Such sale or reoffering shall be on such terms as
the TIFIA Lender shall deem advisable. However, in making such sale or reoffering the TIFIA
14352874.7
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L e n d e r s h a l l n o t c h a n g e 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 T I F I A L o a n w i t h o u t t h e p r i o r w r i t t e n
c o n s e n t o f t h e B o r r o w e r , w h i c h c o n s e n t s h a l l n o t b e u n r e a s o n a b l y w i t h h e l d . T h e T I F I A L e n d e r
s h a l l p r o v i d e ( i ) a t l e a s t 6 0 d a y s p r i o r t o a n y s a l e o r r e o f f e r i n g o f t h e T I F I A L o a n , w r i t t e n n o t i c e
t o t h e B o r r o w e r t o t h e e f f e c t t h a t t h e T I F I A L e n d e r i s c o n s i d e r i n g t h e s a l e o r r e o f f e r i n g o f t h e
T I F I A L o a n a n d ( i i ) a t l e a s t 3 0 d a y s p r i o r t o a n y s a l e o r r e o f f e r i n g o f t h e T I F I A L o a n , w r i t t e n
n o t i c e t o t h e B o r r o w e r c o n f i r m i n g T I F I A L e n d e r ' s i n t e n t i o n t o c o n s u m m a t e s u c h a s a l e o r
r e o f f e r i n g ; p r o v i d e d , h o w e v e r , t h a t n o s u c h n o t i c e s h a l l b e r e q u i r e d d u r i n g t h e c o n t i n u a t i o n o f
a n y E v e n t o f D e f a u l t . T h e p r o v i s i o n o f a n y n o t i c e p u r s u a n t t o t h i s S e c t i o n s h a l l n o t ( i ) o b l i g a t e
t h e T I F I A L e n d e r t o s e l l n o r ( i i ) p r o v i d e t h e B o r r o w e r w i t h a n y r i g h t s o r r e m e d i e s i n t h e e v e n t
t h e T I F I A L e n d e r , f o r a n y r e a s o n , d o e s n o t s e l l t h e T I F I A L o a n . T h e T I F I A L e n d e r a n d t h e
B o r r o w e r a g r e e t h a t , f o r s o l o n g a s a n y S e n i o r O b l i g a t i o n s o r H e d g i n g A g r e e m e n t s r e m a i n
o u t s t a n d i n g , t h e p r o v i s i o n s c o n t a i n e d i n S e c t i o n 8 ( a ) h e r e o f a n d i n t h e M a s t e r I n d e n t u r e w i t h
r e s p e c t t o t h e T I F I A L e n d e r ' s r i g h t t o h a v e t h e T I F I A B o n d b e c o m e a n d b e s e c u r e d a s a S e n i o r
O b l i g a t i o n u n d e r t h e M a s t e r I n d e n t u r e f r o m a n d a f t e r t h e o c c u r r e n c e o f a B a n k r u p t c y R e l a t e d
E v e n t s h a l l b e o f n o f o r c e o r e f f e c t f o l l o w i n g t h e c o m p l e t e s a l e o f t h e T I F I A L o a n t o a n o n -
g o v e r n m e n t a l c o m m e r c i a l e n t i t y . H o w e v e r , s h o u l d a n a s s i g n m e n t o r s a l e b e m a d e t o a f e d e r a l
g o v e r n m e n t a g e n c y o r i n s t r u m e n t a l i t y , t h e f e d e r a l g o v e r n m e n t s h a l l r e t a i n t h e r i g h t t o h a v e t h e
T I F I A B o n d b e c o m e a n d b e s e c u r e d a s a S e n i o r O b l i g a t i o n u n d e r t h e M a s t e r I n d e n t u r e f r o m a n d
a f t e r t h e o c c u r r e n c e o f a n y B a n k r u p t c y R e l a t e d E v e n t .
S E C T I O N 1 9 . E v e n t s o f D e f a u l t a n d R e m e d i e s .
1 4 3 5 2 8 7 4 . 7
( a ) A n E v e n t o f D e f a u l t s h a l l e x i s t u n d e r t h i s A g r e e m e n t i f :
( i ) P a y m e n t D e f a u l t . T h e B o r r o w e r s h a l l f a i l t o p a y a n y o f t h e
p r i n c i p a l a m o u n t o f o r i n t e r e s t o n t h e T I F I A L o a n ( 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 ,
T I F I A M a n d a t o r y D e b t S e r v i c e r e q u i r e d t o h a v e b e e n p a i 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 9 , a n d a n y m a n d a t o r y p r e p a y m e n t r e q u i 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 l O ( a ) ) ( e a c h a " P a y m e n t D e f a u l t " ) ;
( i i ) C o v e n a n t D e f a u l t . T h e B o r r o w e r s h a l l f a i l t o o b s e r v e o r p e r f o r m
a n y c o v e n a n t , a g r e e m e n t o r o b l i g a t i o n o f t h e B o r r o w e r u n d e r t h i s A g r e e m e n t , t h e
T I F I A B o n d o r a n y o t h e r T I F I A L o a n D o c u m e n t ( o t h e r t h a n i n t h e c a s e o f a n y
P a y m e n t D e f a u l t a n y D e v e l o p m e n t D e f a u l t ) , a n d s u c h f a i l u r e s h a l l n o t b e c u r e d
w i t h i n 3 0 d a y s a f t e r r e c e i p t b y t h e B o r r o w e r f r o m t h e T I F I A L e n d e r o f w r i t t e n
n o t i c e t h e r e o f ; p r o v i d e d , h o w e v e r , t h a t i f s u c h f a i l u r e i s c a p a b l e o f c u r e b u t
c a n n o t r e a s o n a b l y b e c u r e d w i t h i n s u c h 3 0 - d a y p e r i o d , t h e n n o E v e n t o f D e f a u l t
s h a l l b e d e e m e d t o h a v e o c c u r r e d o r b e c o n t i n u i n g u n d e r t h i s c l a u s e ( i i ) i f a n d s o
l o n g a s w i t h i n s u c h 3 0 - d a y p e r i o d t h e B o r r o w e r s h a l l c o m m e n c e a c t i o n s
r e a s o n a b l y d e s i g n e d t o c u r e s u c h f a i l u r e a n d s h a l l d i l i g e n t l y p u r s u e s u c h a c t i o n s
u n t i l s u c h f a i l u r e i s c u r e d , p r o v i d e d s u c h f a i l u r e i s c u r e d w i t h i n 1 8 0 d a y s .
( i i i ) D e v e l o p m e n t D e f a u l t . T h e B o r r o w e r f a i l s t o c o m p l e t e t h e P r o j e c t
b y , 2 0 1 7 , u n l e s s t h e B o r r o w e r d e m o n s t r a t e s t o t h e T I F I A L e n d e r ' s
s a t i s f a c t i o n t h a t i t i s p r o c e e d i n g w i t h t h e c o n s t r u c t i o n o f t h e P r o j e c t w i t h d u e
d i l i g e n c e t o w a r d a d a t e a c c e p t a b l e t o t h e T I F I A L e n d e r ( a " D e v e l o p m e n t
D e f a u l t " ) . I n s u c h a c a s e , t h e T I F I A L e n d e r m a y : ( A ) s u s p e n d t h e d i s b u r s e m e n t
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14352874.7
of the TIFIA Loan proceeds under this Agreement; and (B) pursue such other
remedies as provided in Section 18 of this Agreement, including declaring the •
TIFIA Default Rate in effect. The Borrower shall immediately repay any
unexpended TIFIA Loan proceeds previously disbursed to the Borrower. For the
purposes of this Section 18(a)(iii), the Borrower shall have the right to amend the
construction schedule to extend the date for Substantial Completion for a period
ofup to 60 days (unless a longer extension is required due to the occurrence of an
Uncontrollable Force) within thirty (30) days of receipt of notice of an alleged
Development Default; provided that the Borrower shall provide the TIFIA Lender
with (x) a remedial plan with respect to the construction of the Project (a
"Remedial Plan") reviewed by a general engineering consultant satisfactory to the
TIFIA Lender and (y) a certificate from such general engineering consultant
concluding that Substantial Completion is likely to occur by the date specified in
the Remedial Plan, and the TIFIA Lender approves the Remedial Plan (such
approval not to be unreasonably withheld);
(iv) Misrepresentation Default. Any of the representations, warranties
or certifications of the Borrower made in or delivered pursuant to the TIFIA Loan
Documents shall prove to have been false or misleading in any material respect
when made;
(v) Cross Default. (A) Any of the representations, warranties or
certifications of the Borrower made in or delivered pursuant to the Master
Indenture, or made in or delivered pursuant to the documents (the "Other Loan •
Documents") under which any Other Material Indebtedness shall be created or
incurred, shall prove to be false or misleading in any material respect (each a
"Misrepresentation Cross Default"), or any default shall occur in respect of the
performance of any covenant, agreement or obligation of the Borrower under the
Master Indenture or the Other Loan Documents, and such default shall be
continuing after the giving of any applicable notice and the expiration of any
applicable grace period specified in the Master Indenture or the Other Loan
Documents (as the case may be) with respect to such default (each a "Covenant
Cross Default"), if the effect of su~h Misrepresentation Cross Default or Covenant
Cross Default shall be to permit the immediate acceleration of the maturity of any
or all of the Other Material Indebtedness, and, in the case of any such
Misrepresentation Cross Default or Covenant Cross Default, the Borrower shall
have failed to cure such Misrepresentation Cross Default or Covenant Cross
Default or to obtain an effective written waiver thereof within 30 days after
receipt of written notice thereof from the TIFIA Lender; or
(B) The Borrower shall default in the timely performance of
any covenant, agreement or obligation under any Related Document or any
Related Document shall be terminated prior to its scheduled expiration (unless in
any case such default or termination could not reasonably be expected to have a
Material Adverse Effect), and such default shall be continuing after the giving of
any applicable notice and the expiration of any applicable grace period specified •
in the Master Indenture or the Other Loan Documents (as the case may be) with
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r e s p e c t t o s u c h d e f a u l t a n d t h e B o r r o w e r s h a l l h a v e f a i l e d t o c u r e s u c h d e f a u l t o r
t o o b t a i n a n e f f e c t i v e w r i t t e n w a i v e r t h e r e o f , o r t o o b t a i n a n e f f e c t i v e r e v o c a t i o n
o f s u c h t e r m i n a t i o n ( a s t h e c a s e m a y b e ) , w i t h i n 3 0 d a y s a f t e r r e c e i p t o f w r i t t e n
n o t i c e t h e r e o f f r o m t h e T I F I A L e n d e r ;
( v i ) J u d g m e n t s . O n e o r m o r e j u d g m e n t s f o r t h e p a y m e n t o f m o n e y i n
a n a g g r e g a t e a m o u n t i n e x c e s s o f $ 2 , 0 0 0 , 0 0 0 ( i n f l a t e d a n n u a l l y b y C P I ) a n d n o t
o t h e r w i s e c o v e r e d b y i n s u r a n c e o r o t h e r r e s e r v e s s h a l l b e r e n d e r e d a g a i n s t t h e
B o r r o w e r r e l a t i n g t o t h e T o l l R o a d a n d t h e s a m e s h a l l r e m a i n u n d i s c h a r g e d f o r a
p e r i o d o f 3 0 c o n s e c u t i v e d a y s d u r i n g w h i c h e x e c u t i o n s h a l l n o t b e e f f e c t i v e l y
s t a y e d ;
( v i i ) F a i l u r e t o M a i n t a i n E x i s t e n c e . T h e B o r r o w e r s h a l l f a i l t o
m a i n t a i n i t s e x i s t e n c e a s a c o u n t y t r a n s p o r t a t i o n c o m m i s s i o n d u l y 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 ;
( v i i i ) O c c u r r e n c e o f A B a n k r u p t c y R e l a t e d E v e n t . A B a n k r u p t c y
R e l a t e d E v e n t s h a l l o c c u r ;
( i x ) P r o j e c t A b a n d o n m e n t . T h e B o r r o w e r s h a l l a b a n d o n t h e P r o j e c t ; o r
( x ) C e s s a t i o n o f O p e r a t i o n s . O p e r a t i o n o f t h e P r o j e c t s h a l l c e a s e f o r a
c o n t i n u o u s p e r i o d o f n o t l e s s t h a n 1 8 0 d a y s u n l e s s s u c h c e s s a t i o n o f o p e r a t i o n s
s h a l l o c c u r b y r e a s o n o f a n U n c o n t r o l l a b l e F o r c e a n d t h e B o r r o w e r s h a l l h a v e i n
f o r c e a n i n s u r a n c e p o l i c y o r p o l i c i e s u n d e r w h i c h t h e B o r r o w e r i s e n t i t l e d t o
r e c o v e r s u b s t a n t i a l l y a l l A n n u a l D e b t S e r v i c e o n O b l i g a t i o n s a n d c o s t s a n d
e x p e n s e s o f t h e B o r r o w e r d u r i n g s u c h c e s s a t i o n o f o p e r a t i o n s .
( b ) U p o n t h e o c c u r r e n c e o f a n y E v e n t o f D e f a u l t , t h e T I F I A L e n d e r , b y
w r i t t e n n o t i c e t o t h e B o r r o w e r , m a y i n i t s s o l e d i s c r e t i o n s u s p e n d o r t e r m i n a t e a l l o f i t s
o b l i g a t i o n s h e r e u n d e r w i t h r e s p e c t t o t h e d i s b u r s e m e n t o f a n y u n d i s b u r s e d a m o u n t s o f t h e T I F I A
L o a n .
( c ) W h e n e v e r a n y E v e n t o f D e f a u l t h e r e u n d e r s h a l l h a v e o c c u r r e d a n d b e
c o n t i n u i n g , t h e T I F I A L e n d e r s h a l l b e e n t i t l e d a n d e m p o w e r e d t o i n s t i t u t e a n y a c t i o n s o r
p r o c e e d i n g s a t l a w o r i n e q u i t y f o r t h e c o l l e c t i o n o f a n y s u m s d u e a n d u n p a i d h e r e u n d e r o r u n d e r
t h e T I F I A B o n d o r t h e o t h e r T I F I A L o a n D o c u m e n t s , a n d m a y p r o s e c u t e a n y s u c h j u d g m e n t o r
f i n a l d e c r e e a g a i n s t t h e B o r r o w e r i n c l u d i n g c o n f e s s i o n o f j u d g m e n t b y t h e B o r r o w e r a g a i n s t t h e
B o r r o w e r a n d c o l l e c t i n t h e m a n n e r p r o v i d e d b y l a w t h e m o n e y s a d j u d g e d o r d e c r e e d t o b e
p a y a b l e f r o m t h e T r u s t E s t a t e , a n d t h e T I F I A L e n d e r m a y t a k e s u c h o t h e r a c t i o n s a t l a w o r i n
e q u i t y a s m a y a p p e a r n e c e s s a r y o r d e s i r a b l e t o c o l l e c t a l l a m o u n t s p a y a b l e b y B o r r o w e r u n d e r
t h i s A g r e e m e n t , t h e T I F I A B o n d o r t h e o t h e r T I F I A L o a n D o c u m e n t s t h e n d u e a n d t h e r e a f t e r t o
b e c o m e d u e , o r t o e n f o r c e p e r f o r m a n c e a n d o b s e r v a n c e o f a n y o b l i g a t i o n , a g r e e m e n t o r c o v e n a n t
o f t h e B o r r o w e r u n d e r t h i s A g r e e m e n t , t h e T I F I A B o n d o r t h e o t h e r T I F I A L o a n D o c u m e n t s .
( d ) W h e n e v e r a n y E v e n t o f D e f a u l t h e r e u n d e r i n v o l v i n g f r a u d ,
m i s r e p r e s e n t a t i o n , f a l s e c l a i m s , o r s i m i l a r c r i m i n a l a c t s o r a c t s o f m a l f e a s a n c e o r w r o n g d o i n g ,
s h a l l h a v e o c c u r r e d a n d b e c o n t i n u i n g , t h e T I F I A L e n d e r m a y s u s p e n d o r d e b a r t h e B o r r o w e r
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from further participation in any Government program administered by the TIFIA Lender and to •
notify other departments and agencies of such default.
(e) No action taken pursuant to this Section shall relieve Borrower from its
obligations pursuant to this Agreement, the TIFIA Bond or the other TIFIA Loan Documents, all
of which shall survive any such action.
SECTION 20. Accounting and Audit Procedures; Inspections; Reports and Records.
(a) The Borrower shall establish fiscal controls and accounting procedures
sufficient to assure proper accounting for all Project-related transactions (including collection of
Revenue, and any other revenues attributable to the Project, and TIFIA Loan requisitions
received and disbursements made with regard to the Project), so that audits may be performed to
ensure compliance with and enforcement of this Agreement. The Borrower shall use accounting,
audit and fiscal procedures conforming to GAAP, including, with respect to the TIFIA Loan,
accounting of principal and interest payments, disbursements, prepayments and calculation of
interest and principal amounts outstanding.
(b) So long as the TIFIA Loan or any portion thereof shall remain outstanding
and until five years after the TIFIA Loan shall have been paid in full, the TIFIA Lender shall
have the right, upon reasonable prior notice, to visit and inspect any of the locations or properties
of the Borrower, to examine its books of account and records, to make copies and extracts
therefrom at the Borrower's expense, and to discuss the Borrower's affairs, finances and
accounts with, and to be advised as to the same by, its officers and employees and its •
independent public accountants (and by this provision the Borrower irrevocably authorizes its
independent public accountants to discuss with the TIFIA Lender the affairs, finances and
accounts of the Borrower, whether or not any representative of the Borrower is present, it being
:understood that nothing contained in this Section 19(b) is intended to confer any right to exclude
any such representative from such discussions), all at such reasonable times and intervals as the
TIFIA Lender may desire. The Borrower agrees to pay all out-of-pocket expenses incurred by
the TIFIA Lender in connection with the TIFIA Lender's exercise of its rights under this
Section 19(b) at any time when an Event ofDefault shall have occurred and be continuing.
(c) The Borrower shall maintain and retain all files relating to the Project and
the TIFIA Loan until five years after the later of the date on which (1) all rights and duties
hereunder and under the TIFIA Bond (including payments) have been fulfilled and necessary
audits have been performed and (2) any litigation relating to the Project, the TIFIA Loan or this
Agreement is finally resolved. The Borrower shall provide the TIFIA Lender in a timely manner
all records and documentation relating to the Project that the TIFIA Lender may reasonably
request from time-to-time.
(d) The Borrower shall provide to the TIFIA Lender, promptly after the
sending or receipt thereof, copies of (i) all reports or other written materials relating to the Toll
Road sent to any Nationally Recognized Rating Agency that has provided, or is being requested
to provide, a rating on any indebtedness in respect of the Toll Road, (ii) all material notices and
other written communications relating to the Master Indenture, the TIFIA Loan Documents, the
Project or the financing thereof (including, until the Substantial Completion Date, relating to the •
14352874.7
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S a l e s T a x I n d e n t u r e ) , a n d ( i i i ) a l l r e p o r t s , n o t i c e s a n d o t h e r w r i t t e n m a t e r i a l s r e q u i r e d t o b e s e n t
t o t h e B o n d h o l d e r s u n d e r t h e M a s t e r I n d e n t u r e , 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 l l s u c h n o t i c e s
r e l a t i n g t o a n y o f t h e P r i n c i p a l P r o j e c t C o n t r a c t s .
( e ) T h e T I F I A L e n d e r s h a l l h a v e t h e r i g h t t o c o n d u c t f r o m t i m e - t o - t i m e
i n d e p e n d e n t f i n a n c i a l a n d c o m p l i a n c e a u d i t s o f t h e B o r r o w e r i n a c c o r d a n c e w i t h t h e S i n g l e
A u d i t A c t o f 1 9 8 4 , a s a m e n d e d , a n d O f f i c e o f M a n a g e m e n t a n d B u d g e t C i r c u l a r A 1 3 3 , " A u d i t s
o f S t a t e a n d L o c a l G o v e r n m e n t s , " o r a s o t h e r w i s e r e q u e s t e d b y t h e T I F I A L e n d e r . U p o n
r e a s o n a b l e n o t i c e , t h e B o r r o w e r s h a l l c o o p e r a t e f u l l y i n c o n d u c t i n g a u d i t s a n d s h a l l p r o v i d e f u l l
a c c e s s t o a n y b o o k s , d o c u m e n t s , p a p e r s o r o t h e r r e c o r d s w h i c h a r e p e r t i n e n t t o t h e P r o j e c t o r t h e
T I F I A L o a n , t o t h e S e c r e t a r y , o r t h e d e s i g n e e t h e r e o f , f o r n e c e s s a r y p r o j e c t o r p r o g r a m m a t i c
a u d i t s p u r s u a n t t o 2 3 U . S . C . � 6 0 7 , 4 9 C F R 8 0 . 1 9 , 3 1 U . S . C . � 6 5 0 3 ( h ) a n d 3 1 U . S . C . � 7 5 0 3 ( b ) .
S E C T I O N 2 1 . F i n a n c i a l P l a n , S t a t e m e n t s , a n d R e p o r t s .
( a ) T h e B o r r o w e r s h a l l p r o v i d e a F i n a n c i a l P l a n t o t h e T I F I A L e n d e r a n d t h e
F H W A C a l i f o r n i a D i v i s i o n O f f i c e , w i t h i n 6 0 d a y s a f t e r t h e E f f e c t i v e D a t e a n d a n n u a l l y
t h e r e a f t e r n o t l a t e r t h a n 9 0 d a y s a f t e r t h e b e g i n n i n g o f e a c h B o r r o w e r F i s c a l Y e a r u n t i l t h e
r e p a y m e n t i n f u l l o f t h e T I F I A L o a n . T h e B a s e C a s e F i n a n c i a l P l a n s u b m i t t e d w i t h i n 6 0 d a y s
a f t e r t h e E f f e c t i v e D a t e s h o u l d b e c o n s i s t e n t i n a l l r e s p e c t s w i t h t h e p r o j e c t i o n s , a s s u m p t i o n s a n d
o t h e r i n f o r m a t i o n c o n t a i n e d o r r e f l e c t e d i n t h e B a s e C a s e F i n a n c i a l M o d e l . F o r t h e p e r i o d
t h r o u g h S u b s t a n t i a l C o m p l e t i o n , t h e F i n a n c i a l P l a n s h a l l b e a p p r o v e d b y t h e F H W A C a l i f o r n i a
D i v i s i o n w i t h t h e c o n c u r r e n c e o f t h e T I F I A L e n d e r a n d F H W A ' s O f f i c e o f I n n o v a t i v e P r o g r a m
D e l i v e r y . T h e F H W A C a l i f o r n i a D i v i s i o n O f f i c e ' s a p p r o v a l o f t h e B a s e C a s e F i n a n c i a l P l a n i s
r e q u i r e d p r i o r t o t h e p h y s i c a l c o m m e n c e m e n t o f c o n s t r u c t i o n o f t h e P r o j e c t . T h e F i n a n c i a l P l a n
s h a l l b e p r e p a r e d i n a c c o r d a n c e w i t h r e c o g n i z e d f i n a n c i a l r e p o r t i n g s t a n d a r d s , s u c h a s t h o s e i n
t h e " G u i d e f o r P r o s p e c t i v e F i n a n c i a l I n f o r m a t i o n " o f t h e A m e r i c a n I n s t i t u t e o f C e r t i f i e d P u b l i c
A c c o u n t a n t s , s h a l l m e e t F H W A ' s M a j o r P r o j e c t F i n a n c i a l P l a n G u i d a n c e , a s a m e n d e d f r o m
t i m e - t o - t i m e , a n d s h a l l b e i n f o r m a n d s u b s t a n c e s a t i s f a c t o r y t o t h e T I F I A L e n d e r .
1 4 3 5 2 8 7 4 . 7
( i ) T h e F i n a n c i a l P l a n s h a l l i n c l u d e : ( A ) a c e r t i f i c a t e s i g n e d b y t h e
B o r r o w e r ' s A u t h o r i z e d R e p r e s e n t a t i v e t o t h e e f f e c t t h a t t h e F i n a n c i a l P l a n ,
i n c l u d i n g t h e a s s u m p t i o n s a n d s u p p o r t i n g d o c u m e n t a t i o n , i s a c c u r a t e a n d
r e a s o n a b l e t o t h e " b e s t o f t h e B o r r o w e r ' s k n o w l e d g e a n d b e l i e f ' ; ( B ) a c e r t i f i c a t e
s i g n e d b y t h e B o r r o w e r ' s A u t h o r i z e d R e p r e s e n t a t i v e d e m o n s t r a t i n g t h a t a n n u a l
p r o j e c t e d R e v e n u e s h a l l b e s u f f i c i e n t t o m e e t t h e L o a n A m o r t i z a t i o n S c h e d u l e
a n d t o m e e t t h e R a t e C o v e n a n t e s t a b l i s h e d p u r s u a n t t o S e c t i o n 1 5 ( o ) ; a n d ( C ) a n
e l e c t r o n i c c o p y o f t h e u p d a t e d B a s e C a s e F i n a n c i a l M o d e l o f t h e o p e r a t i o n o f t h e
P r o j e c t f o r t h e p e r i o d f r o m i n c e p t i o n t h e r e o f t h r o u g h t h e F i n a l M a t u r i t y D a t e , i n
s u b s t a n t i a l l y t h e f o r m h e r e t o f o r e p r o v i d e d t o t h e T I F I A L e n d e r , b a s e d u p o n
a s s u m p t i o n s a n d p r o j e c t i o n s w i t h r e s p e c t t o t h e r e v e n u e s , e x p e n s e s a n d o t h e r
f i n a n c i a l a s p e c t s o f t h e P r o j e c t w h i c h s h a l l r e f l e c t t h e p r i o r e x p e r i e n c e a n d c u r r e n t
s t a t u s o f t h e P r o j e c t , a n d t h e e x p e c t a t i o n s o f m a n a g e m e n t w i t h r e s p e c t t o t h e
P r o j e c t , a s o f t h e m o s t r e c e n t p r a c t i c a b l e d a t e p r i o r t o t h e d e l i v e r y o f s u c h m o d e l .
( i i ) F o r t h e p e r i o d t h r o u g h S u b s t a n t i a l C o m p l e t i o n , t h e F i n a n c i a l P l a n
s h a l l : ( A ) p r o v i d e t h e c u r r e n t e s t i m a t e o f t h e t o t a l c o s t o f t h e P r o j e c t a n d t h e
5 5
3 1 0
14352874.7
remaining cost to complete the Project, identify any significant cost changes since
the previous Financial Plan, discuss reasons for and implications of the cost
changes, and include a summary table showing the history of Project Costs by
major activity or category since the Base Case Financial Plan and the preceding
Financial Plan; (B) provide the current schedule and implementation plan for
completing the Project, including the Substantial Completion Date, identify major
milestones for each component of the Project and compare current milestone
· dates with milestone dates in the Base Case Financial Plan and the preceding
Financial Plan, and discuss reasons for changes in Project milestones; (C) provide
current estimates of sources and uses of funds for the Project, identifY any
significant funding changes since the preceding Financial Plan, discuss reasons
for and implications of the funding changes, and include a summary table
showing the history of Project funding since the Base Case Financial Plan and the
preceding Financial Plan; (D) provide an updated cash flow schedule showing
annual cash needs versus available revenue and funding to meet those needs and
identify any potential revenue and funding shortfalls and addressing contingency
measures that will or may be taken to address any shortfalls; (E) based on the
updated cash flow schedule, provide projected debt service coverage ratios for
any Obligations through the Final Maturity Date; (F) provide cost containment
strategies and risk mitigation plans that have been or may be implemented to
address factors that are affecting or could affect the scheduled completion or
financial viability of the Project; (G) provide the total value of approved changes
in project design or scope, and provide a listing of each individual change valued .
at $2,500,000 or more, setting forth the rationale or need for the proposed change
and describing the impact of such change on the Project; (H) contain, in form and
substance satisfactory to the TIFIA Lender, a written narrative report on the
progress of design, permitting, acquisition and construction of the Project since
the Base Case Financial Plan and the preceding Financial Plan, describing in
reasonable detail all significant activities concerning Project status including any
material matters that may affect the future performance of the Borrower's
obligations under this Agreement and the causes thereof; and (I) comply in all
respects with FHWA's Major Project Financial Plan requirements.
(iii) For the period following Substantial Completion until repayment
of the TIFIA Loan in full, the Financial Plan shall: (A) provide an updated cash
flow schedule showing annual cash inflows (Revenue, interest and other income)
and outflows (Operating and Maintenance Expenses, capital costs, Annual Debt
Service on the Obligations , replenishment of reserves and other uses) with a
narrative identifying any potential revenue or funding shortfall and discussing
contingency measures that will or may be taken to address any shortfalls;
(B) provide current and estimated amounts of revenues received and the amounts
deposited into each of the accounts and subaccounts established under the Master
Indenture and the amount disbursed from such funds and accounts and the balance
in each of the funds and accounts; (C) provide an updated schedule of actual and
projected Revenue, showing actual and projected coverage ratios for the TIFIA
Loan; (D) provide a schedule of then current toll rates and planned increases; and
(E) provide a written narrative report explaining any variances in costs or
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r e v e n u e s s i n c e t h e B a s e C a s e F i n a n c i a l P l a n a n d t h e p r e c e d i n g F i n a n c i a l P l a n
a n d d e s c r i b i n g i n r e a s o n a b l e d e t a i l a n y m a t e r i a l m a t t e r s t h a t m a y a f f e c t t h e f u t u r e
p e r f o r m a n c e o f t h e B o r r o w e r ' s o b l i g a t i o n s u n d e r t h i s A g r e e m e n t a n d t h e c a u s e s
t h e r e o f t o i n c l u d e , b u t n o t l i m i t e d , t r a f f i c a n d r e v e n u e r e p o r t s , o p e r a t i o n a l
c o n t r a c t s , a n d t h i r d - p a r t y t r a n s a c t i o n s .
( b ) N o t l a t e r t h a n n i n e t y ( 9 0 ) d a y s f o l l o w i n g t h e S u b s t a n t i a l C o m p l e t i o n D a t e ,
t h e B o r r o w e r s h a l l p r o v i d e t h e T I F I A L e n d e r w i t h a f i n a l w r i t t e n n a r r a t i v e r e p o r t , s u m m a r i z i n g
a l l s i g n i f i c a n t a c t i v i t i e s a n d e v e n t s , s i n c e t h e B a s e C a s e F i n a n c i a l P l a n , a f f e c t i n g t h e o p e r a t i o n ,
m a i n t e n a n c e , f i n a n c i n g , o r m a n a g e m e n t o f t h e p r o j e c t i n a f o r m r e a s o n a b l y s a t i s f a c t o r y t o t h e
T I F I A L e n d e r . S u c h r e p o r t s h a l l i n c l u d e a n u p d a t e d c a s h f l o w s c h e d u l e a n d c u r r e n t l y p r o j e c t e d
C o v e r a g e R a t i o s f o r a l l B o r r o w e r F i s c a l Y e a r s d u r i n g t h e t e r m o f t h e T I F I A L o a n . F o r t h e
a v o i d a n c e o f d o u b t , t h e B o r r o w e r m u s t c o m p l y w i t h t h e c o n t i n u e d r e p o r t i n g r e q u i r e m e n t s o f
F H W A M a j o r P r o j e c t s F i n a n c i a l P l a n G u i d a n c e , a s a m e n d e d f r o m t i m e - t o - t i m e .
( c ) F o r t h e p e r i o d t h r o u g h S u b s t a n t i a l C o m p l e t i o n , t h e B o r r o w e r s h a l l p r o v i d e
t h e T I F I A L e n d e r w i t h w r i t t e n n o t i f i c a t i o n , b e f o r e i n s t i t u t i n g a n y i n c r e a s e o r d e c r e a s e o f t h e
o v e r a l l P r o j e c t C o s t s i n a n a m o u n t e q u a l t o o r g r e a t e r t h a n $ 2 , 5 0 0 , 0 0 0 , s e t t i n g f o r t h t h e n a t u r e o f
t h e p r o p o s e d i n c r e a s e o r d e c r e a s e a n d e s t i m a t i n g t h e i m p a c t o f s u c h i n c r e a s e o r d e c r e a s e o n t h e
c a p i t a l c o s t s , o p e r a t i n g c o s t s , a n d t h e F i n a n c i a l P l a n . T h e B o r r o w e r ' s n o t i c e s h a l l d e m o n s t r a t e
t h a t t h e p r o p o s e d i n c r e a s e o r d e c r e a s e i s c o n s i s t e n t w i t h t h e p r o v i s i o n s o f t h i s A g r e e m e n t , i s
n e c e s s a r y o r b e n e f i c i a l t o t h e P r o j e c t a n d d o e s n o t m a t e r i a l l y i m p a i r t h e T I F I A L e n d e r ' s s e c u r i t y .
( d ) T h e B o r r o w e r s h a l l f u r n i s h t o t h e T I F I A L e n d e r :
( i ) A s s o o n a s a v a i l a b l e , b u t n o l a t e r t h a n s i x t y ( 6 0 ) d a y s a f t e r t h e e n d
o f e a c h q u a r t e r l y p e r i o d o f e a c h B o r r o w e r F i s c a l Y e a r , t h e B o r r o w e r ' s q u a r t e r l y
c a s h f l o w s t a t e m e n t . T h e s e s t a t e m e n t s a r e t o b e c o m p l e t e a n d c o r r e c t i n a l l
m a t e r i a l r e s p e c t s a n d t o b e c e r t i f i e d b y 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 r 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 B o r r o w e r a s f a i r l y s t a t i n g i n a l l m a t e r i a l r e s p e c t s t h e
f i n a n c i a l c o n d i t i o n o f t h e B o r r o w e r a s a t t h e e n d o f s u c h p e r i o d a n d t h e r e s u l t s o f
i t s o p e r a t i o n s f o r s u c h p e r i o d ( s u b j e c t t o n o r m a l y e a r - e n d a u d i t a d j u s t m e n t s ) ; a n d
( i i ) W i t h i n o n e h u n d r e d e i g h t y ( 1 8 0 ) d a y s a f t e r t h e l a s t d a y o f e a c h
B o r r o w e r F i s c a l Y e a r , 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 B o r r o w e r f o r s u c h
B o r r o w e r F i s c a l Y e a r .
A l l s u c h f i n a n c i a l s t a t e m e n t s o f t h e T o l l R o a d s h a l l b e c o m p l e t e a n d c o r r e c t i n a l l m a t e r i a l
r e s p e c t s a n d s h a l l b e p r e p a r e d i n r e a s o n a b l e d e t a i l a n d i n a c c o r d a n c e w i t h G A A P a p p l i e d
c o n s i s t e n t l y t h r o u g h o u t t h e p e r i o d s r e f l e c t e d t h e r e i n ( e x c e p t f o r c h a n g e s a p p r o v e d o r r e q u i r e d b y
a n y i n d e p e n d e n t p u b l i c a c c o u n t a n t s c e r t i f y i n g s u c h s t a t e m e n t s a n d d i s c l o s e d t h e r e i n ) .
( e ) T h e B o r r o w e r s h a l l f u r n i s h t o t h e T I F I A L e n d e r , t o g e t h e r w i t h e a c h
d e l i v e r y o f a n n u a l a u d i t e d o r i n t e r i m 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 o f t h e B o r r o w e r p u r s u a n t t o
S e c t i o n 2 0 ( d ) , a c e r t i f i c a t e s i g n e d b y t h e B o r r o w e r ' s A u t h o r i z e d R e p r e s e n t a t i v e s t a t i n g w h e t h e r
o r n o t , d u r i n g t h e a n n u a l o r s e m i - a n n u a l p e r i o d ( a s t h e c a s e m a y b e ) c o v e r e d b y s u c h f i n a n c i a l
" s t a t e m e n t s , t h e r e o c c u r r e d a n y E v e n t o f D e f a u l t o r e v e n t w h i c h , w i t h n o t i c e o r l a p s e o f t i m e o r
1 4 3 5 2 8 7 4 . 7
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both, would become an Event of Default, and, if any such Event of Default or other event shall •
have occurred during such period, the nature of such Event of Default or other event and the
actions that the Borrower has taken or intends to take in respect thereof.
SECTION 22. Project Oversight and Monitoring.
(a) Project Development, Design and Construction. The TIFIA Lender shall
have the right in its sole discretion to monitor (or direct its agents to monitor) development,
including but not limited to environmental compliance, design, right-of-way acquisition, and
construction of the Project. The Borrower shall be responsible for administering construction
oversight of the Project in accordance with the Design-Build Contract. The Borrower's
oversight of Project development, environmental compliance, design, right-of-way acquisition,
and construction monitoring shall be conducted pursuant to the Project Oversight Agreement,
which may be amended from time-to-time upon mutual agreement. of Caltrans and FHW A, or
when so required by federal statute or otherwise required by the United States. Congress. The
Borrower agrees to cooperate in good faith with the TIFIA Lender in the conduct of such
monitoring by promptly providing the TIFIA Lender with such reports, documentation or other
information as shall be requested by the TIFIA Lender, or its agents, including any independent
engineer reports, documentation or information.
14352874.7
(b) Reporting. The Borrower shall furnish to the TIFIA Lender the following:
(i) Construction Progress Reports. On or before the last Business Day
of any calendar month during the Construction Period, a report executed by a
Borrower's Authorized Representative (A) of the amount of Project Costs
expended since the Effective Date as well as during the preceding calendar month
and the amount of Project Costs estimated to be required to complete the Project,
(B) providing an assessment of the overall construction progress of the Project
since the date of the last report and since the Effective Date, together with an
assessment of how such progress compares to the Construction Schedule,
(C) specifying the expected Substantial Completion Date, (D) providing a detailed
description of all material problems (including but not limited to actual and
anticipated cost and/or schedule overruns, if any) encountered or anticipated in
connection with the construction of the Project since the date of the last report,
together with an assessment of how such problems may impact the Construction
Schedule and the meeting of critical dates thereunder and a detailed description of
the proposed solutions to any such problems, (E) specifying the delivery status of
major equipment and the effect, if any, that the anticipated delivery dates of such
equipment has on the overall Construction Schedule, (F) specifying any proposed
or pending change orders, (G) specifying any material changes or deviations from
the Borrower's land procurement plans or schedule, and (H) a discussion or
analysis of such other matters related to the Project as the TIFIA Lender may
reasonably request. The Borrower shall respond, and use commercially
reasonable efforts to cause the applicable Design-Build Contractor to respond, to
the TIFIA Lender's inquiries regarding such report, the construction of the Project
and the Design-Build Contractor's performance of its obligations under the
Design-Build Contract.
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( i i ) D e s i g n - B u i l d C o n t r a c t o r R e p o r t s . D u r i n g t h e C o n s t r u c t i o n P e r i o d ,
p r o m p t l y a f t e r r e c e i p t t h e r e o f , a c o p y o f e a c h r e p o r t d e l i v e r e d b y t h e D e s i g n -
B u i l d C o n t r a c t o r t o t h e B o r r o w e r p u r s u a n t t o t h e D e s i g n - B u i l d C o n t r a c t .
( i i i ) A n n u a l O p e r a t i n g B u d g e t . N o l a t e r t h a n 3 0 d a y s p r i o r t o t h e
c o m m e n c e m e n t o f e a c h B o r r o w e r F i s c a l Y e a r , t h e B o r r o w e r s h a l l s u b m i t a n
o p e r a t i n g p l a n a n d a b u d g e t , o n a c a s h f l o w b a s i s o f p r o j e c t e d t r a f f i c , R e v e n u e s ,
O p e r a t i n g a n d M a i n t e n a n c e E x p e n s e s , R e p a i r a n d R e h a b i l i t a t i o n F u n d P e r m i t t e d
E x p e n d i t u r e s , i n t e r e s t , a n d o t h e r c o s t s a n d a p r o f o r m a b a l a n c e s h e e t 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 A A P f o r t h e n e x t B o r r o w e r F i s c a l Y e a r ( c o l l e c t i v e l y , a n
" A n n u a l O p e r a t i n g B u d g e t " ) , e a c h p r e p a r e d b y t h e B o r r o w e r i n g o o d f a i t h a n d
a c c o m p a n i e d b y a c e r t i f i c a t e o f a n A u t h o r i z e d R e p r e s e n t a t i v e o f t h e B o r r o w e r t o
t h e e f f e c t t h a t s u c h o f f i c e r h a s n o r e a s o n t o b e l i e v e t h a t i t i s i n c o r r e c t o r
m i s l e a d i n g i n a n y m a t e r i a l r e s p e c t , b a s e d u p o n i n f o r m a t i o n t h e n k n o w n b y 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 .
( i v ) T r a f f i c a n d O p e r a t i n g R e p o r t . F o r t h e p e r i o d c o m m e n c i n g a f t e r
S u b s t a n t i a l C o m p l e t i o n , d e l i v e r t o t h e T I F I A L e n d e r , n o t l a t e r t h a n n i n e t y ( 9 0 )
d a y s a f t e r t h e e n d o f e a c h f i n a n c i a l q u a r t e r , a t r a f f i c a n d o p e r a t i n g r e p o r t s h o w i n g
( A ) t h e o p e r a t i n g d a t a f o r t h e P r o j e c t f o r t h e p r e v i o u s f i n a n c i a l q u a r t e r , i n c l u d i n g
t o t a l R e v e n u e r e c e i v e d a n d t o t a l O p e r a t i n g a n d M a i n t e n a n c e E x p e n s e s a n d
C a p i t a l E x p e n d i t u r e s F u n d P e r m i t t e d E x p e n d i t u r e s i n c u r r e d , ( B ) t h e v a r i a n c e s f o r
s u c h p e r i o d b e t w e e n t h e R e v e n u e s a c t u a l l y r e c e i v e d a n d t h e b u d g e t e d R e v e n u e s
a s s h o w n i n t h e A n n u a l O p e r a t i n g B u d g e t , t o g e t h e r w i t h a b r i e f n a r r a t i v e
e x p l a n a t i o n o f t h e r e a s o n s f o r a n y s u c h v a r i a n c e o f 2 0 % o r m o r e , a n d ( C ) t h e
v a r i a n c e s f o r s u c h p e r i o d b e t w e e n t h e a c t u a l O p e r a t i o n a n d M a i n t e n a n c e
E x p e n s e s i n c u r r e d a n d t h e b u d g e t e d O p e r a t i n g a n d M a i n t e n a n c e E x p e n s e s a s
s h o w n i n t h e A n n u a l O p e r a t i n g B u d g e t , t o g e t h e r w i t h a b r i e f n a r r a t i v e
e x p l a n a t i o n o f t h e r e a s o n s f o r a n y s u c h v a r i a n c e o f 2 0 % o r m o r e .
( v ) P e r m i t s . P r o m p t l y a f t e r t h e r e c e i p t o r f i l i n g t h e r e o f , a s t h e c a s e
m a y b e ( b u t i n n o e v e n t l a t e r t h a n t h i r t y ( 3 0 ) d a y s a f t e r s u c h r e c e i p t o r f i l i n g ) , a
c o p y o f ( A ) e a c h G o v e r n m e n t a l A p p r o v a l o r o t h e r c o n s e n t o r a p p r o v a l o b t a i n e d
b y t h e B o r r o w e r , o r o b t a i n e d b y a n y D e s i g n - B u i l d C o n t r a c t o r a n d d e l i v e r e d t o t h e
B o r r o w e r p u r s u a n t t o a n y D e s i g n - B u i l d C o n t r a c t a f t e r t h e E f f e c t i v e D a t e , a n d
( B ) e a c h f i l i n g m a d e b y t h e B o r r o w e r o r t h e D e s i g n - B u i l d C o n t r a c t o r w i t h a n y
G o v e r n m e n t a l A u t h o r i t y w i t h r e s p e c t t o a G o v e r n m e n t a l A p p r o v a l , e x c e p t s u c h a s
a r e r o u t i n e o r m i n i s t e r i a l i n n a t u r e .
( v i ) [ A n n u a l E n g i n e e r ' s R e p o r t . D u r i n g t h e . C o n s t r u c t i o n P e r i o d ,
p r o m p t l y a f t e r t h e r e c e i p t o r f i l i n g t h e r e o f ( b u t i n n o e v e n t l a t e r t h a n t h i r t y ( 3 0 )
d a y s a f t e r s u c h r e c e i p t o r f i l i n g ) , a c o p y o f e a c h a n n u a l e n g i n e e r s ' c e r t i f i c a t e s o r
r e p o r t s r e q u i r e d p u r s u a n t t o S e c t i o n s [ 6 . 0 5 ] o f t h e M a s t e r I n d e n t u r e . ]
( c ) P r o j e c t O p e r a t i o n s . F o r t h e p e r i o d f o l l o w i n g S u b s t a n t i a l C o m p l e t i o n , t h e
T I F I A L e n d e r s h a l l h a v e t h e r i g h t , i n i t s s o l e d i s c r e t i o n , t o m o n i t o r ( o r d i r e c t i t s a g e n t s t o
m o n i t o r ) t h e P r o j e c t ' s o p e r a t i o n s a n d t o r e q u i r e r e p o r t i n g o n t h e o p e r a t i o n a n d m a n a g e m e n t o f
1 4 3 5 2 8 7 4 . 7
5 9
3 1 4
the Project and to provide copies of any contracts relating to the operation, maintenance and •
safety services for the Project as may be required from time-to-time. The Borrower agrees to
cooperate in good faith with the TIFIA Lender in the conduct of such monitoring by promptly
providing the TIFIA Lender with such reports, documentation, or other information as shall be
requested by the TIFIA Lender. In the event that the TIFIA Lender retains a financial oversight
advisor under contract with the TIFIA Lender, which decision shall be within the sole discretion
of the TIFIA Lender, to carry out the provisions of this Section, the full cost of such monitoring
shall be borne by the Borrower as an Operation and Maintenance Expense. Any costs incurred
by the TIFIA Lender for such monitoring shall be promptly reimbursed by the Borrower upon
demand therefor in the form of an invoice reasonably acceptable to the Borrower.
SECTION 23. No Personal Recourse. No official, employee or agent of the TIFIA
Lender or the Borrower or any Person executing this Agreement or any of the other TIFIA Loan
Documents shall be personally liable on this Agreement or such other TIFIA Loan Documents
by reason of the issuance, delivery or execution hereof or thereof, provided that nothing in this
Section shall be construed to relieve the Borrower from any liability it may incur under this
Agreement or any of the other TIFIA Loan Document.
SECTION 24. No Third Party Rights. The parties hereby agree that this Agreement and
the Master Indenture create no third party rights against the United States or the TIFIA Lender,
solely by virtue of the TIFIA Loan, and the Borrower agrees to hold the above Federal parties
harmless, to the extent permitted by laws, from any lawsuit or claim arising in law or equity
solely by reason of the TIFIA Loan, and that no third party creditor or creditors of the Borrower
shall have any right against the TIFIA Lender with respect to the TIFIA Loan made pursuant to •
this Agreement or otherwise under the Master Indenture. No payment obligations arising under
the Master Indenture or any other document shall be payable by the TIFIA Lender, except to the
extent of funds appropriated and legally available therefor.
SECTION 25. Borrower's Authorized Representative. The Borrower shall at all times
have appointed a Borrower's Authorized Representative by designating such Person or Persons
from time-to-time to act on the Borrower's behalf pursuant to a written certificate furnished to
the TIFIA Lender, the Trustee and the Servicer, if any, containing the specimen signature or
signatures of such Person or Persons and signed by the Borrower.
SECTION 26. TIFIA Lender's Authorized Representative.
(a) The TIFIA Lender shall at all times have appointed a TIFIA Lender's
Authorized Representative by designating such Person or Persons from time-to-time to act on the
TIFIA Lender's behalf pursuant to a written certificate furnished to the Borrower, the Trustee
and the Servicer, if any, containing the specimen signature or signatures of such Person or
Persons and signed by the TIFIA Lender.
(b) Pursuant to a Delegation of Authority dated July 24, 2003, the
Administrator delegated the authority to enter into contracts and sign all contractual and funding
documents (with the exception of the term sheets and credit agreements) necessary to implement
the Act, including entering into technical amendments to, and restatements of, term sheets and
credit agreements that do not materially impair the credit quality of the revenues pledged to
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" r e p a y t h e U S D O T . T h i s a u t h o r i t y w a s d e l e g a t e d t o t h e A s s o c i a t e A d m i n i s t r a t o r f o r
A d m i n i s t r a t i o n w h o i n t u r n d e l e g a t e d s u c h a u t h o r i t y t o t h e D i r e c t o r o f t h e O f f i c e o f I n n o v a t i v e
P r o g r a m D e l i v e r y o n J u n e 1 5 , 2 0 0 9 . P u r s u a n t t o t h e s e d e l e g a t i o n s t h e a b o v e n a m e d o f f i c e r s , a n y
o f w h o m a l o n e m a y a c t , s e r v e a s t h e L e n d e r ' s A u t h o r i z e d R e p r e s e n t a t i v e u n d e r t h i s A g r e e m e n t ,
i n a d d i t i o n t o t h e A d m i n i s t r a t o r f o r t h e p u r p o s e s s e t f o r t h h e r e i n .
S E C T I O N 2 7 . S e r v i c e r . T h e T I F I A L e n d e r m a y f r o m t i m e - t o - t i m e d e s i g n a t e a n e n t i t y o r
e n t i t i e s t o p e r f o r m , o r a s s i s t t h e T I F I A L e n d e r i n p e r f o r m i n g , t h e d u t i e s o f t h e S e r v i c e r o r
s p e c i f i e d d u t i e s o f t h e T I F I A L e n d e r u n d e r t h i s A g r e e m e n t a n d t h e T I F I A B o n d . T h e T I F I A
L e n d e r s h a l l g i v e t h e B o r r o w e r w r i t t e n n o t i c e o f t h e a p p o i n t m e n t o f a n y S e r v i c e r a n d s h a l l
e n u m e r a t e t h e d u t i e s o r a n y c h a n g e i n d u t i e s t o b e p e r f o r m e d b y a n y S e r v i c e r . A n y r e f e r e n c e s i n
t h i s A g r e e m e n t t o t h e T I F I A L e n d e r s h a l l b e d e e m e d t o b e a r e f e r e n c e t o t h e S e r v i c e r w i t h
r e s p e c t t o a n y d u t i e s w h i c h t h e T I F I A L e n d e r s h a l l h a v e d e l e g a t e d t o s u c h S e r v i c e r . T h e T I F I A
L e n d e r m a y a t a n y t i m e a s s u m e t h e d u t i e s o f a n y S e r v i c e r u n d e r t h i s A g r e e m e n t a n d t h e T I F I A
B o n d .
S E C T I O N 2 8 . F e e s a n d E x p e n s e s .
( a ) C o m m e n c i n g i n F e d e r a l F i s c a l Y e a r ( F F Y ) 2 0 1 4 a n d c o n t i n u i n g t h e r e a f t e r
e a c h y e a r t h r o u g h o u t t h e t e r m o f t h i s A g r e e m e n t , t h e B o r r o w e r s h a l l p a y t o t h e T I F I A L e n d e r a n
a n n u a l l o a n s e r v i c i n g f e e o n o r b e f o r e t h e 1 5 1 h o f N o v e m b e r o f e a c h s u c h y e a r . T h e T I F I A
L e n d e r s h a l l e s t a b l i s h t h e a m o u n t o f t h i s a n n u a l f e e , a n d t h e T I F I A L e n d e r s h a l l n o t i f y t h e
B o r r o w e r o f t h e a m o u n t , a t l e a s t 3 0 d a y s b e f o r e p a y m e n t i s d u e .
" ( b ) I n e s t a b l i s h i n g t h e a m o u n t o f t h e f e e , t h e T I F I A L e n d e r w i l l a d j u s t t h e
"
p r e v i o u s y e a r ' s b a s e a m o u n t u t i l i z i n g t h e C o n s u m e r P r i c e I n d e x f o r A l l U r b a n C o n s u m e r s ( C P I -
U ) f o r t h e U . S . C i t y A v e r a g e f o r A l l I t e m s , 1 9 8 2 - 8 4 = 1 0 0 , o r i t s s u c c e s s o r ( s ) , p u b l i s h e d b y t h e
B u r e a u o f L a b o r S t a t i s t i c s , o r i t s s u c c e s s o r ( s ) . F o r t h e F F Y 2 0 1 4 c a l c u l a t i o n , t h e T I F I A L e n d e r
w i l l u s e t h e F F Y 2 0 1 3 b a s e a m o u n t o f $ 1 2 , 3 0 3 w h i c h a p p l i e s t o o t h e r T I F I A b o r r o w e r s , a s t h e
p r e v i o u s y e a r ' s b a s e a m o u n t : T h e T I F I A L e n d e r w i l l c a l c u l a t e t h e p e r c e n t a g e c h a n g e i n t h e C P I -
U , b e f o r e s e a s o n a l a d j u s t m e n t , f r o m A u g u s t o f t h e p r e v i o u s y e a r t o A u g u s t o f t h e c u r r e n t y e a r
a n d w i l l t h e n a d j u s t t h e p r e v i o u s y e a r ' s b a s e a m o u n t i n p r o p o r t i o n t o t h e C P I p e r c e n t a g e c h a n g e .
T o c a l c u l a t e t h e a m o u n t o f t h e f e e , t h e T I F I A L e n d e r s h a l l r o u n d t h e c u r r e n t y e a r ' s b a s e a m o u n t
u s i n g i n c r e m e n t s o f $ 5 0 0 . R e s u l t s w i t h t h e e n d i n g i n t e g e r s b e t w e e n 2 5 0 - 4 9 9 o r b e t w e e n 7 5 0 -
9 9 9 s h a l l b e r o u n d e d u p w a r d , a n d r e s u l t s w i t h t h e e n d i n g i n t e g e r s b e t w e e n 0 0 1 - 2 4 9 o r b e t w e e n
5 0 1 - 7 4 9 s h a l l b e r o u n d e d d o w n w a r d . T h e C P I a d j u s t m e n t s i n t h e f o l l o w i n g y e a r s s h a l l b e g i n
w i t h t h e b a s e a m o u n t , n o t t h e r o u n d e d f e e .
( c ) T h e B o r r o w e r s h a l l c o o p e r a t e a n d r e s p o n d t o a n y r e a s o n a b l e r e q u e s t o f t h e
S e r v i c e r f o r i n f o r m a t i o n , d o c u m e n t a t i o n o r o t h e r i t e m s r e a s o n a b l y n e c e s s a r y f o r t h e p e r f o r m a n c e
b y t h e S e r v i c e r o f i t s d u t i e s h e r e u n d e r .
( d ) T h e B o r r o w e r a g r e e s , w h e t h e r o r n o t t h e t r a n s a c t i o n s h e r e b y c o n t e m p l a t e d
s h a l l b e c o n s u m m a t e d , t o r e i m b u r s e t h e T I F I A L e n d e r o n d e m a n d f r o m t i m e - t o - t i m e o n a n d a f t e r
t h e d a t e h e r e o f f o r a n y a n d a l l f e e s , c o s t s , c h a r g e s a n d e x p e n s e s i n c u r r e d b y i t ( i n c l u d i n g t h e
r e a s o n a b l e f e e s , c o s t s a n d e x p e n s e s o f c o u n s e l a n d o t h e r a d v i s o r s ) i n c o n n e c t i o n w i t h . t h e
n e g o t i a t i o n , p r e p a r a t i o n , e x e c u t i o n , d e l i v e r y a n d p e r f o r m a n c e o f t h i s A g r e e m e n t a n d t h e o t h e r
1 4 3 5 2 8 7 4 . 7
6 1
3 1 6
TIFIA Loan Documents and the transactions hereby and thereby contemplated, including without
limitation, reasonable attorneys', engineers', and planning fees and professional costs, including •
a11 such fees, costs and expenses incurred as a result of or in connection with:
(i) the enforcement of or attempt to enforce any provision of this
Agreement or any of the other TIFIA Loan Documents;
(ii) any amendment or requested amendment of, or waiver or consent
or requested waiver or consent under or with respect to, this Agreement or any of
the other TIFIA Loan Documents, or advice in connection with the administration
of this Agreement or any of the other TIFIA Loan Documents or the rights of the
TIFIALenderthereunder;and
(iii) any work-out, restructuring or similar arrangement of the
obligations of the Borrower under this Agreement or the other TIFIA Loan
Documents during the pendency of one or more Events of Default.
(e) The obligations of the Borrower under this Section shall survive the
payment or prepayment in fu11 or transfer of the TIFIA Bond, the enforcement of any provision
of this Agreement or the other TIFIA Loan Documents, any such amendments, waivers or
consents, any Event of Default, and any such workout, restructuring or similar arrangement.
SECTION 29. Amendments and Waivers. No amendment, modification, termination or
waiver of any provision of this Agreement shall in any event be effective without the written •
consent of each of the parties hereto.
SECTION 30. Governing Law. This Agreement shall be governed by the federal laws of
the United States if and to the extent such federal laws are applicable and the internal laws of the
State, if and to the extent such federal laws are not applicable.
SECTION 31. Severability. In case any provision in or obligation under this Agreement
shall be invalid, i11egal or unenforceable in any jurisdiction, the validity, legality and
enforceability of the remaining provisions or obligations, or of such provision or obligation in
any other jurisdiction, shall not in any way be affected or impaired thereby.
SECTION 32. Successors and Assigns. This Agreement shall be binding upon the parties
hereto and their respective permitted successors and assigns and shall inure to the benefit of the
parties hereto and their permitted successors and assigns. Neither the Borrower's rights or
obligations hereunder nor any interest therein may be assigned or delegated by the Borrower
without the prior written consent of the TIFIA Lender.
SECTION 33. Remedies Not Exclusive. No remedy conferred herein or reserved to the
TIFIA Lender is intended to be exclusive of any other available remedy or remedies, but each
and every such remedy shall be cumulative and shall be in addition to every other remedy given
hereunder or now or hereafter existing at law or in equity or by statute.
SECTION 34. Delay or Omission Not Waiver. No delay or omission of the TIFIA •
Lender to exercise any right or remedy provided hereunder upon a default of the Borrower
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( e x c e p t a d e l a y o r o m i s s i o n p u r s u a n t t o a w r i t t e n w a i v e r ) s h a l l i m p a i r a n y s u c h r i g h t o r r e m e d y
o r c o n s t i t u t e a w a i v e r o f a n y s u c h d e f a u l t o r a c q u i e s c e n c e t h e r e i n . E v e r y r i g h t a n d r e m e d y g i v e n
b y t h i s A g r e e m e n t o r b y l a w t o t h e T I F I A L e n d e r m a y b e e x e r c i s e d f r o m t i m e - t o - t i m e , a n d a s
o f t e n a s m a y b e d e e m e d e x p e d i e n t b y t h e T I F I A L e n d e r .
S E C T I O N 3 5 . C o u n t e r p a r t s . T h i s A g r e e m e n t a n d a n y a m e n d m e n t s , w a i v e r s , c o n s e n t s o r
s u p p l e m e n t s h e r e t o o r i n c o n n e c t i o n h e r e w i t h m a y b e e x e c u t e d i n a n y n u m b e r o f c o u n t e r p a r t s
a n d b y t h e d i f f e r e n t p a r t i e s h e r e t o i n s e p a r a t e c o u n t e r p a r t s , e a c h o f w h i c h w h e n s o e x e c u t e d a n d
d e l i v e r e d s h a l l b e d e e m e d a n o r i g i n a l , b u t a l l s u c h c o u n t e r p a r t s t o g e t h e r s h a l l c o n s t i t u t e o n e a n d
t h e s a m e i n s t r u m e n t ; s i g n a t u r e p a g e s m a y b e d e t a c h e d f r o m m u l t i p l e s e p a r a t e c o u n t e r p a r t s a n d
a t t a c h e d t o a s i n g l e c o u n t e r p a r t s o t h a t a l l s i g n a t u r e p a g e s a r e p h y s i c a l l y a t t a c h e d t o t h e s a m e
d o c u m e n t .
S E C T I O N 3 6 . N o t i c e s ; P a y m e n t I n s t r u c t i o n s . N o t i c e s h e r e u n d e r s h a l l b e e f f e c t i v e u p o n
r e c e i p t a n d s h a l l b e g i v e n b y c e r t i f i e d m a i l , r e t u r n r e c e i p t r e q u e s t e d , o r b y o t h e r d e l i v e r y s e r v i c e
p r o v i d i n g e v i d e n c e o f r e c e i p t t o :
I f t o t h e T I F I A L e n d e r
I f t o t h e B o r r o w e r :
T I F I A J o i n t P r o g r a m O f f i c e ( H I T J )
F e d e r a l H i g h w a y A d m i n i s t r a t i o n
1 2 0 0 N e w J e r s e y A v e n u e , S E
W a s h i n g t o n , D C 2 0 5 9 0
A t t e n t i o n : D i r e c t o r
T e l e p h o n e : 2 0 2 - 3 6 6 - 9 6 4 4
F a c s i m i l e : 2 0 2 - 3 6 6 - 2 9 0 8
E - m a i l : T I F I A C r e d i t @ d o t . g o v
w i t h c o p i e s t o :
F e d e r a l H i g h w a y A d m i n i s t r a t i o n
C a l i f o r n i a D i v i s i o n
6 5 0 C a p i t o l M a s s , S u i t e 4 - 1 0 0
S a c r a m e n t o , C A 9 5 8 1 4
A t t e n t i o n : D i v i s i o n A d m i n i s t r a t o r
T e l e p h o n e : 9 1 6 - 4 9 8 - 5 0 0 1
F a c s i m i l e : 9 1 6 - 4 9 8 - 5 0 0 8
E - m a i l :
R i v e r s i d e C o u n t y T r a n s p o r t a t i o n C o m m i s s i o n
P . O . B o x 1 2 0 0 8
" R i v e r s i d e , C a l i f o r n i a 9 2 5 0 2
A t t e n t i o n : C h i e f F i n a n c i a l O f f i c e r
T e l e p h o n e : 9 5 1 - 7 8 7 - 7 1 4 1
F a c s i m i l e : 9 5 1 - 7 8 7 - 7 9 2 0
E - m a i l :
N o t i c e s r e q u i r e d t o b e p r o v i d e d h e r e i n s h a l l b e p r o v i d e d t o s u c h d i f f e r e n t a d d r e s s e s o r t o s u c h
f u r t h e r p a r t i e s a s m a y b e d e s i g n a t e d f r o m t i m e - t o - t i m e b y a B o r r o w e r ' s A u t h o r i z e d
R e p r e s e n t a t i v e w i t h r e s p e c t t o n o t i c e s t o t h e B o r r o w e r o r b y a T I F I A L e n d e r ' s A u t h o r i z e d
1 4 3 5 2 8 7 4 . 7
6 3
3 1 8
Representative with respect to notices to the TIFIA Lender or the Servicer. The Borrower shall •
make any payments hereunder or under the TIFIA Bond in accordance with the payment
instructions hereafter provided by a TIFIA Lender's Authorized Representative, as modified
from time-to-time by a TIFIA Lender's Authorized Representative.
SECTION 37. Effectiveness. This Agreement shall be effective on the Effective Date.
SECTION 38. Termination. This Agreement shall terminate upon payment in full by the
Borrower of the TIFIA Loan, provided, however, that the indemnification requirements of
Section 16, the reporting and record keeping requirements of Section 19(b) and (c) and the
payment requirements of Section 27 shall survive the termination of this Agreement.
14352874.7
64
319
•
•
"
"
"
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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 c a u s e d t h i s A g r e e m e n t t o b e 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 i r r e s p e c t i v e o f f i c e r s t h e r e u n t o d u l y a u t h o r i z e d a s o f t h e d a t e f i r s t
w r i t t e n a b o v e .
1 4 3 5 2 8 7 4 . 7
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 : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
N a m e :
T i t l e :
U N I T E D S T A T E 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 , a c t i n g b y a n d t h r o u g h t h e
F e d e r a l H i g h w a y A d m i n i s t r a t o r
B y : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
N a m e : V i c t o r M . M e n d e z
T i t l e : A d m i n i s t r a t o r
[ S i g n a t u r e P a g e t o T I F I A L o a n A g r e e m e n t ]
3 2 0
14352874.7
Schedule I
I-1
321
•
•
•
Schedule II
TIFIA Eligible Project Costs
•
• II-I
14352874.7
322
Schedule III
SR 91 Corridor Improvement Project •
Construction Schedules
Project Schedule Date
•
III-I •
14352874.7
323
"
"
"
1 4 3 5 2 8 7 4 . 7
E x h i b i t A
F O R M O F T I F I A B O N D
[ T O C O M E )
A - 1
3 2 4
14352874.7
Appendix Two
TIFIA Loan Amortization Schedule
SR-91 Corridor Improvement Project
A-2
325
•
•
•
" E x h i b i t B
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
A n t i c i p a t e d T I F I A L o a n D i s b u r s e m e n t S c h e d u l e
"
" B - 1
1 4 3 5 2 8 7 4 . 7
3 2 6
"
"
" "
"
"
"
"
E x h i b i t C
C E R T I F I C A T I O N R E G A R D I N G D E B A R M E N T , S U S P E N S I O N ,
A N D O T H E R R E S P O N S I B I L I T Y M A T T E R S -
P R I M A R Y C O V E R E D T R A N S A C T I O N S
T h e B o r r o w e r c e r t i f i e s , t o t h e b e s t o f i t s k n o w l e d g e , t h a t i t a n d i t s p r i n c i p a l s ( a s
d e f i n e d i n 2 C . F . R . P a r t 1 8 0 . 9 9 5 ) :
( a ) A r e n o t p r e s e n t l y d e b a r r e d , s u s p e n d e d , p r o p o s e d f o r d e b a r m e n t , d e c l a r e d
i n e l i g i b l e , o r v o l u n t a r i l y e x c l u d e d b y a n y F e d e r a l d e p a r t m e n t o r a g e n c y ;
( b ) H a v e n o t w i t h i n a t h r e e - y e a r p e r i o d p r e c e d i n g t h e E f f e c t i v e D a t e b e e n
c o n v i c t e d o f o r h a d a c i v i l j u d g m e n t r e n d e r e d a g a i n s t t h e m f o r c o m m i s s i o n o f f r a u d o r a
c r i m i n a l o f f e n s e i n c o n n e c t i o n w i t h o b t a i n i n g , a t t e m p t i n g t o o b t a i n , o r p e r f o r m i n g a
p u b l i c ( F e d e r a l , S t a t e o r l o c a l ) t r a n s a c t i o n o r c o n t r a c t u n d e r a p u b l i c t r a n s a c t i o n ;
v i o l a t i o n o f F e d e r a l o r S t a t e a n t i t r u s t s t a t u t e s o r c o m m i s s i o n o f e m b e z z l e m e n t , t h e f t ,
f o r g e r y , b r i b e r y , f a l s i f i c a t i o n o r d e s t r u c t i o n o f r e c o r d s , m a k i n g f a l s e s t a t e m e n t s , o r
r e c e i v i n g s t o l e n p r o p e r t y ;
( c ) A r e n o t p r e s e n t l y i n d i c t e d f o r o r o t h e r w i s e c r i m i n a l l y o r c i v i l l y c h a r g e d b y
a g o v e r n m e n t a l e n t i t y ( F e d e r a l , S t a t e o r l o c a l ) w i t h c o m m i s s i o n o f a n y o f t h e o f f e n s e s
e n u m e r a t e d i n p a r a g r a p h ( b ) o f t h i s c e r t i f i c a t i o n ; a n d
( d ) H a v e n o t w i t h i n a t h r e e - y e a r p e r i o d p r e c e d i n g t h e E f f e c t i v e D a t e h a d o n e
o r m o r e p u b l i c t r a n s a c t i o n s ( F e d e r a l , S t a t e o r l o c a l ) t e r m i n a t e d f o r c a u s e o r d e f a u l t .
C a p i t a l i z e d t e r m s u s e d i n t h e c e r t i f i c a t e a n d n o t d e f i n e d s h a l l h a v e t h e r e s p e c t i v e
m e a n i n g s a s c r i b e d t o s u c h t e r m s i n t h e T I F I A L o a n A g r e e m e n t , d a t e d a s o f 2 0 1 3 ,
b e t w e e n t h e T I F I A L e n d e r a n d t h e B o r r o w e r , a s t h e s a m e m a y b e a m e n d e d f r o m t i m e - t o - t i m e .
D a t e d : - - - - - - - -
1 4 3 5 2 8 7 4 . 7
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 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
N a m e :
T i t l e :
C - 1
3 2 7
"
"
"
"
"
"
E x h i b i t D
R E Q U I S I T I O N P R O C E D U R E S
T h i s E x h i b i t D s e t s o u t t h e p r o c e d u r e s w h i c h t h e B o r r o w e r a g r e e s t o f o l l o w i n s u b m i t t i n g
R e q u i s i t i o n s f o r t h e d i s b u r s e m e n t o f T I F I A L o a n p r o c e e d s t o p a y d i r e c t l y f o r , o r r e i m b u r s e t h e
B o r r o w e r f o r , E l i g i b l e P r o j e c t C o s t s i n c u r r e d i n c o n n e c t i o n w i t h t h e P r o j e c t . S e c t i o n 1 s e t s o u t
t h e m a n n e r i n w h i c h R e q u i s i t i o n s a r e t o b e s u b m i t t e d a n d r e v i e w e d . S e c t i o n s 2 t h r o u g h 4 s e t o u t
t h e c i r c u m s t a n c e s i n w h i c h t h e T I F I A L e n d e r m a y r e j e c t o r c o r r e c t R e q u i s i t i o n s s u b m i t t e d b y t h e
B o r r o w e r o r w i t h h o l d a d i s b u r s e m e n t . T h e B o r r o w e r e x p r e s s l y a g r e e s t o t h e t e r m s h e r e o f , a n d
f u r t h e r a g r e e s t h a t ( i ) t h e r i g h t s o f t h e T I F I A L e n d e r c o n t a i n e d h e r e i n a r e i n a d d i t i o n t o ( a n d n o t
i n l i e u o f ) a n y o t h e r r i g h t s o r r e m e d i e s a v a i l a b l e t o t h e T I F I A L e n d e r u n d e r t h e T I F I A L o a n
A g r e e m e n t , a n d ( i i ) n o t h i n g c o n t a i n e d h e r e i n s h a l l b e c o n s t r u e d t o l i m i t t h e r i g h t s o f t h e T I F I A
L e n d e r t o t a k e a c t i o n s 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 d m i n i s t r a t i v e e n f o r c e m e n t a c t i o n a n d
a c t i o n s f o r b r e a c h o f c o n t r a c t a g a i n s t t h e B o r r o w e r i f i t f a i l s t o c a r r y o u t i t s o b l i g a t i o n s u n d e r t h e
T I F I A L o a n A g r e e m e n t d u r i n g t h e t e r m t h e r e o f .
S e c t i o n 1 . G e n e r a l R e q u i r e m e n t s . A l l r e q u e s t s b y t h e B o r r o w e r f o r t h e d i s b u r s e m e n t o f
T I F I A L o a n p r o c e e d s s h a l l b e m a d e b y e l e c t r o n i c m a i l o r o v e r n i g h t d e l i v e r y s e r v i c e b y
s u b m i s s i o n t o t h e T I F I A L e n d e r , i n a c c o r d a n c e w i t h S e c t i o n 3 5 o f t h e A g r e e m e n t , o f a
R e q u i s i t i o n , i n f o r m a n d s u b s t a n c e s a t i s f a c t o r y t o t h e T I F I A L e n d e r a n d c o m p l e t e d a n d e x e c u t e d
b y a d u l y a u t h o r i z e d r e p r e s e n t a t i v e o f t h e B o r r o w e r . T h e f o r m o f R e q u i s i t i o n i s a t t a c h e d a s
A p p e n d i x O n e t o t h i s E x h i b i t D . S u p p o r t i n g d o c u m e n t a t i o n s h o u l d b e s u b m i t t e d w i t h t h e
r e q u i s i t i o n .
T h e T I F I A L e n d e r a g r e e s t o p r o m p t l y s e n d t o t h e B o r r o w e r i n a c c o r d a n c e w i t h
S e c t i o n 3 5 o f t h e A g r e e m e n t , a n a c k n o w l e d g e m e n t o f r e c e i p t o f e a c h R e q u i s i t i o n i n t h e f o r m
a t t a c h e d a s A p p e n d i x T w o t o t h i s E x h i b i t D s e t t i n g f o r t h t h e d a t e o f r e c e i p t b y t h e T I F I A L e n d e r
o f s u c h R e q u i s i t i o n a n d s e t t i n g f o r t h t h e B u s i n e s s D a y o n w h i c h d i s b u r s e m e n t w i l l b e m a d e
a b s e n t d e n i a l b y t h e T I F I A L e n d e r . A l l d i s b u r s e m e n t r e q u e s t s m u s t b e r e c e i v e d b y t h e T I F I A
L e n d e r a t o r b e f o r e 5 : 0 0 P . M . ( E S T ) o n t h e f i f t e e n t h B u s i n e s s D a y o f a c a l e n d a r m o n t h i n o r d e r
t o o b t a i n d i s b u r s e m e n t b y t h e f i r s t d a y o f t h e n e x t s u c c e e d i n g c a l e n d a r m o n t h o r , i f e i t h e r s u c h
d a y i s n o t a B u s i n e s s D a y , t h e n e x t s u c c e e d i n g B u s i n e s s D a y . I f a R e q u i s i t i o n i s a p p r o v e d b y t h e
T I F I A L e n d e r , t h e T I F I A L e n d e r w i l l n o t i f y t h e B o r r o w e r o f s u c h a p p r o v a l a n d o f t h e a m o u n t s o
a p p r o v e d .
S e c t i o n 2 .
( a )
( b )
R e p r e s e n t a t i v e ;
R e j e c t i o n . A R e q u i s i t i o n m a y b e r e j e c t e d b y t h e T I F I A L e n d e r i f i t i s :
s u b m i t t e d w i t h o u t s i g n a t u r e ;
s u b m i t t e d u n d e r s i g n a t u r e o f a P e r s o n o t h e r t h a n a B o r r o w e r ' s A u t h o r i z e d
( c ) s u b m i t t e d a f t e r p r i o r d i s b u r s e m e n t o f a l l p r o c e e d s o f t h e T I F I A L o a n ; o r
D - 1
1 4 3 5 2 8 7 4 . 7
3 2 8
(d) submitted without adequate documentation of Eligible Project Costs •
incurred or paid. Such documentation shall include detailed invoices for costs incurred or paid.
The TIFIA Lender will notify the Borrower of any Requisition so rejected, and the
reasons therefor. Any Requisition rejected for the reasons specified in (a) or (b) above must be
resubmitted in proper form in order to be considered for approval. If a Requisition exceeds the
balance of the TIFIA Loan proceeds remaining to be disbursed, the request will be treated as if
submitted in the amount of the balance so remaining, and the TIFIA Lender will so notify the
Borrower.
Section 3. Correction. A Requisition containing an apparent mathematical error will
be corrected by the TIFIA Lender, after telephonic notification to the. Borrower, and will
thereafter be treated as if submitted in the corrected amount. The TIFIA Lender will confirm
correction of the error, to the Borrower, in writing.
Section 4. Withholding. The TIFIA Lender shall be entitled to withhold approval of
any pending or subsequent requests for the disbursement ofTIFIA Loan proceeds if:
(a) the Borrower
(i) fails to pay any principal or interest on the TIFIA Loan when the
same is due and payable; or
(ii) applies TIFIA Loan proceeds for purposes other than payment of, •
or reimbursement for, Eligible Project Costs which have been the subject of an
approved disbursement request hereunder; or
14352874.7
(iii) knowingly takes any action, or omits to take any action, amounting
to fraud or violation of any applicable federal or local criminal law, in connection
with the transactions contemplated hereby; or
(iv) An Event of Default under the TIFIA Loan Agreement shall have
occurred and be continuing;
(b) the Borrower
(i) fails to construct the Project in a manner consistent with plans,
specifications, engineering reports or facilities plans previously submitted to and
approved by the TIFIA Lender, or with good engineering practices, where such
failure prevents or materially impairs the Project from fulfilling its intended
purpose, or prevents or materially impairs the ability of the TIFIA Lender to
monitor compliance by the Borrower with applicable federal or local law
pertaining to the Project, or with the terms and conditions of the TIFIA Loan
Agreement; or
(ii) fails to observe or comply with any applicable federal or local law,
or any term or condition of the TIFIA Loan Agreement; or
D-2
329
•
"
"
"
( i i i ) f a i l s t o d e l i v e r d o c u m e n t a t i o n e v i d e n c i n g E l i g i b l e P r o j e c t C o s t s
c l a i m e d f o r d i s b u r s e m e n t a t t h e t i m e s a n d i n t h e m a n n e r s p e c i f i e d b y t h e T I F I A
L o a n A g r e e m e n t ; a n d s u c h f a i l u r e c o n t i n u e s f o r a p e r i o d o f m o r e t h a n t h i r t y ( 3 0 )
d a y s f o l l o w i n g w r i t t e n n o t i c e f r o m t h e T I F I A L e n d e r t o t h e B o r r o w e r , t h e T I F I A
L e n d e r s h a l l b e e n t i t l e d t o w i t h h o l d , f r o m a n y R e q u i s i t i o n r e c e i v e d a f t e r s u c h
t h i r t y ( 3 0 ) d a y p e r i o d h a s e x p i r e d , a n d u n t i l s u c h f a i l u r e i s c u r e d o r c o r r e c t e d , a n
a m o u n t d e t e r m i n e d b y t h e T I F I A L e n d e r ( i n i t s s o l e d i s c r e t i o n ) t o b e a d e q u a t e f o r
t h e c u r e o r c o r r e c t i o n o f s u c h f a i l u r e , w h i c h a m o u n t s h a l l b e s t a t e d i n s u c h n o t i c e ;
p r o v i d e d , t h a t i f t h e n a t u r e o f t h e f a i l u r e i s s u c h t h a t i t c a n n o t r e a s o n a b l y b e c u r e d
o r c o r r e c t e d w i t h i n s u c h t h i r t y ( 3 0 ) d a y p e r i o d , t h e T I F I A L e n d e r s h a l l n o t
w i t h h o l d a n y d i s b u r s e m e n t b y r e a s o n o f s u c h f a i l u r e i f t h e B o r r o w e r c o m m e n c e s
c u r e o r c o r r e c t i o n w i t h i n s u c h t h i r t y ( 3 0 ) d a y p e r i o d a n d t h e r e a f t e r d i l i g e n t l y
c o m p l e t e s s u c h c u r e o r c o r r e c t i o n w i t h i n a f u r t h e r r e a s o n a b l e t i m e p e r i o d .
T h e f o r e g o i n g n o t w i t h s t a n d i n g , i f , a s o f t h e d a t e o f s u c h n o t i c e f r o m t h e T I F I A L e n d e r ,
t h e b a l a n c e o f t h e T I F I A L o a n p r o c e e d s r e m a i n i n g t o b e d i s b u r s e d i s l e s s t h a n t h e a m o u n t
d e t e r m i n e d b y t h e T I F I A L e n d e r t o b e a d e q u a t e f o r t h e c u r e o r c o r r e c t i o n o f s u c h f a i l u r e , t h e
T I F I A L e n d e r m a y i m m e d i a t e l y w i t h h o l d a l l f u r t h e r d i s b u r s e m e n t o f T I F I A L o a n p r o c e e d s u n t i l
s u c h f a i l u r e i s c u r e d o r c o r r e c t e d w i t h i n t h e t i m e p e r i o d s p e c i f i e d b y t h e p r e c e d i n g p a r a g r a p h .
D - 3
1 4 3 5 2 8 7 4 . 7
3 3 0
"
"
"
"
"
"
A p p e n d i x O n e t o E x h i b i t D
F O R M O F R E Q U I S I T I O N
U n i t e d S t a t e 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
c / o D i r e c t o r , T I F I A J o i n t P r o g r a m O f f i c e ( H I T J )
F e d e r a l H i g h w a y A d m i n i s t r a t i o n
1 2 0 0 N e w J e r s e y A v e n u e , S E ,
W a s h i n g t o n , D C 2 0 5 9 0
F e d e r a l H i g h w a y A d m i n i s t r a t i o n
C a l i f o r n i a D i v i s i o n
6 5 0 C a p i t o l M a s s , S u i t e 4 - 1 0 0
S a c r a m e n t o , C A 9 5 8 1 4
A t t e n t i o n : D i v i s i o n A d m i n i s t r a t o r
R 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 I F I A - 2 0 1 2 - 1 0 0 6 A )
L a d i e s a n d G e n t l e m e n :
P u r s u a n t t o S e c t i o n 4 o f t h e T I F I A L o a n A g r e e m e n t , d a t e d a s o f J u n e _ , 2 0 1 3 ( t h e " T I F I A
L o a n A g r e e m e n t " ) , 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 ( t h e " B o r r o w e r " ) a n d t h e U N I T E D S T A T E 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 , a c t i n g b y a n d t h r o u g h t h e F e d e r a l H i g h w a y A d m i n i s t r a t o r ( t h e " T I F I A
L e n d e r " ) , w e h e r e b y r e q u e s t d i s b u r s e m e n t i n t h e a m o u n t o f $ f o r E l i g i b l e P r o j e c t
C o s t s . C a p i t a l i z e d t e r m s u s e d b u t n o t d e f i n e d h e r e i n h a v e t h e m e a n i n g s e t f o r t h i n t h e T I F I A
L o a n A g r e e m e n t . I n c o n n e c t i o n w i t h t h i s R e q u i s i t i o n t h e u n d e r s i g n e d d o e s h e r e b y r e p r e s e n t a n d
c e r t i f y t h e f o l l o w i n g :
1 . T h i s R e q u i s i t i o n i s R e q u i s i t i o n n u m b e r _ _ _
2 . T h e r e q u e s t e d d a t e o f d i s b u r s e m e n t i s [ - - - - - 1 , _ _ j , w h i c h 1 s t h e f i r s t
B u s i n e s s D a y f o l l o w i n g 1 , _ _ ] .
3 . T h e a m o u n t s p r e v i o u s l y d i s b u r s e d u n d e r t h e T I F I A L o a n A g r e e m e n t a g g r e g a t e
$ a n d t h e a m o u n t s p r e v i o u s l y d i s b u r s e d u n d e r t h e M a s t e r I n d e n t u r e
a g g r e g a t e $ _ _ _ _ _ _
4 . T h e a m o u n t s h e r e b y r e q u i s i t i o n e d h a v e b e e n i n c u r r e d b y o r o n b e h a l f o f t h e B o r r o w e r f o r
E l i g i b l e P r o j e c t C o s t s , a n d s u c h a m o u n t s , t o g e t h e r w i t h t h e a m o u n t s s e t f o r t h i n
p a r a g r a p h 3 a b o v e , w i l l n o t e x c e e d a s o f t h e r e q u e s t e d d i s b u r s e m e n t d a t e 3 3 % o f
r e a s o n a b l y a n t i c i p a t e d E l i g i b l e P r o j e c t C o s t s .
D - 4
1 4 3 5 2 8 7 4 . 7
3 3 1
5. The amount of this Requisition, together with all prior Requisitions, does not exceed the
amount of the TIFIA Loan, and the amount of this Requisition together with the sum of
all disbursements of TIFIA Loan proceeds made and to be made for the current year will
not exceed the cumulative disbursements through the end of the current year as set forth
in the Anticipated TIFIA Loan Disbursement Schedule, as such may be amended from
time-to-time.
6. All amounts requisitioned hereunder are for Eligible Project Costs which have not been
paid for or reimbursed by any previous disbursement from TIFIA Loan proceeds.
7. All documentation evidencing the Eligible Project Costs to be paid for or reimbursed by
the disbursement has been delivered by the Borrower at the times and in the manner
specified by the TIFIA Loan Agreement.
8. The Project has been, and is being, constructed in a manner consistent with all plans,
specifications, engineering reports and facilities plans previously submitted to and
approved by the TIFIA Lender and the FHW A California Division and with good
engineering practices.
9.
10.
The Borrower is in compliance with all of the terms and conditions of the TIFIA Loan
Agreement and the Master Indenture and there does not currently exist an Event of
Default under the TIFIA Loan Agreement or an event of default under the Master
Indenture or any event which with the giving of notice or the passage of time or both
would constitute such an Event of Default or event of default.
A copy of the construction progress report pursuant to Section 21(b)(i) of the TIFIA Loan
Agreement for the month preceding the date of the applicable Requisition has been
delivered to each of the above named addresses.
11. The undersigned acknowledges that if the Borrower makes a false, fictitious, or
fraudulent claim, statement, submission, or certification to the Government in connection
with the Project, the Government reserves the right to impose on the Borrower the
penalties of 18 U.S.C. §1001 and 49 U.S.C. §5307(n)(l), to the extent the Government
deems appropriate.
12. A copy of this requisition has been delivered to each ofthe above named addressees.
13. The undersigned is duly authorized to execute and deliver this requisition on behalf of the
Borrower.
14. [Add wire instructions.]
Date: --------------------~
Borrower's Authorized Representative
Name: ------------------------
Title: -------------------------
D-5
14352874.7
332
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A p p e n d i x T w o t o E x h i b i t D
[ A P P R O V A L / D I S A P P R O V A L ] O F T H E T I F I A L E N D E R
( T o b e d e l i v e r e d t o t h e B o r r o w e r )
R e q u i s i t i o n N u m b e r i s [ a p p r o v e d ] [ a p p r o v e d i n p a r t ] 1 [ n o t a p p r o v e d ] 2
b y t h e T I F I A L e n d e r ( a s d e f i n e d h e r e i n ) p u r s u a n t t o S e c t i o n 4 o f t h e T I F I A L o a n A g r e e m e n t ,
d a t e d a s o f J u n e _ , 2 0 1 3 , 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
( t h e " B o r r o w e r " ) a n d t h e U n i t e d S t a t e 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 , a c t i n g b y a n d t h r o u g h t h e
F e d e r a l H i g h w a y A d m i n i s t r a t o r ( t h e " T I F I A L e n d e r " ) .
A n y d e t e r m i n a t i o n , a c t i o n o r f a i l u r e t o a c t b y t h e T I F I A L e n d e r w i t h r e s p e c t t o t h e
R e q u i s i t i o n s e t f o r t h a b o v e , i n c l u d i n g b u t n o t l i m i t e d t o t h e w i t h h o l d i n g o f a d i s b u r s e m e n t , s h a l l
b e a t t h e T I F I A L e n d e r ' s s o l e d i s c r e t i o n , a n d i n n o e v e n t s h a l l t h e T I F I A L e n d e r b e r e s p o n s i b l e
f o r o r l i a b l e t o t h e B o r r o w e r f o r a n y a n d / o r a l l c o n s e q u e n c e ( s ) w h i c h a r e t h e r e s u l t t h e r e o f .
U N I T E D S T A T E 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 , a c t i n g b y a n d t h r o u g h t h e
F e d e r a l H i g h w a y A d m i n i s t r a t o r
B y :
- - - - - - - - - - - - - - - - - - - - - - - - - - - - ~
T I F I A L e n d e r ' s A u t h o r i z e d R e p r e s e n t a t i v e
N a m e : - - - - - - - - - - - - - - - - - - - - - - - T i t l e : - - - - - - - - - - - - - - - - - - - - - - - - D a t e d : - - - - - - - - - - - - - - - - - - - -
T h o s e p o r t i o n s o f t h e r e q u i s i t i o n s t h a t a r e a p p r o v e d a n d t h o s e p o r t i o n s t h a t a r e n o t a p p r o v e d
a r e d e s c r i b e d i n S c h e d u l e A a t t a c h e d h e r e t o , w i t h e x p l a n a t i o n s f o r i t e m s n o t a p p r o v e 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 a r e r e a s o n s f o r d e n i a l o f a p p r o v a l .
D - 6
1 4 3 5 2 8 7 4 . 7
3 3 3
14352874.7
Exhibit E
UNITED STATES DEPARTMENT OF TRANSPORTATION
FEDERAL HIGHWAY ADMINISTRATION
E-1
334
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C O M P L I A N C E W I T H L A W S
T h e B o r r o w e r a g r e e s t o a b i d e b y a n y a n d a l l a p p l i c a b l e F e d e r a l a n d s t a t e l a w s . T h e f o l l o w i n g
l i s t o f F e d e r a l l a w s i s i l l u s t r a t i v e o f t h e t y p e o f r e q u i r e m e n t s g e n e r a l l y a p p l i c a b l e t o
t r a n s p o r t a t i o n p r o j e c t s . I t i s n o t i n t e n d e d t o b e e x h a u s t i v e . T h e B o r r o w e r s h a l l r e q u i r e t h a t i t s
c o n t r a c t o r s a n d s u b c o n t r a c t o r s c o m p l y w i t h a p p l i c a b l e l a w s a s t h e y m a y b e a m e n d e d f r o m t i m e
t o t i m e :
1 4 3 5 2 8 7 4 . 7
( i ) 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 o f 1 9 9 0 a n d i m p l e m e n t i n g
r e g u l a t i o n s ( 4 2 U . S . C . � � 1 2 1 0 1 e t s e q . ; 2 8 C . F . R . � 3 5 ; 2 9 C . F . R . �
1 6 3 0 ) ;
( i i ) T i t l e V I o f t h e C i v i l R i g h t s A c t o f 1 9 6 4 , a s a m e n d e d ( 4 2 U . S . C . � � 2 0 0 0 d
e t s e q . ) a n d U n i t e d S t a t e 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 r e g u l a t i o n , 4 9
C . F . R . P a r t 2 1 ;
( i i i ) T h e U n i f o r m R e l o c a t i o n A s s i s t a n c e a n d R e a l P r o p e r t y A c q u i s i t i o n
P o l i c i e s A c t o f 1 9 7 0 , a s a m e n d e d ( 4 2 U . S . C . � � 4 6 0 1 e t s e q . ) , w i t h t h e
u n d e r s t a n d i n g t h a t t h e r e q u i r e m e n t s o f s a i d A c t a r e n o t a p p l i c a b l e w i t h
r e s p e c t t o u t i l i t y r e l o c a t i o n s e x c e p t w i t h r e s p e c t t o a c q u i s i t i o n s b y t h e
B o r r o w e r o f e a s e m e n t s o r o t h e r r e a l p r o p e r t y r i g h t s f o r t h e r e l o c a t e d
f a c i l i t i e s ;
( i v ) E q u a l e m p l o y m e n t o p p o r t u n i t y r e q u i r e m e n t s u n d e r E x e c u t i v e O r d e r
1 1 2 4 6 d a t e d S e p t e m b e r 2 4 , 1 9 6 5 ( 3 0 F . R . 1 2 3 1 9 ) , a n y E x e c u t i v e O r d e r
a m e n d i n g s u c h o r d e r , a n d i m p l e m e n t i n g r e g u l a t i o n s ( 2 9 C . F . R . � � 1 6 2 5 -
2 7 , 1 6 3 0 ; 2 8 C . F . R . � 3 5 ; 4 1 C . F . R . � 6 0 ; a n d 4 9 C . F . R . � 2 7 ) ;
( v ) R e s t r i c t i o n s g o v e r n i n g t h e u s e o f F e d e r a l a p p r o p r i a t e d f u n d s f o r l o b b y i n g
( 3 1 U . S . C . � 1 3 5 2 ; 4 9 C . F . R . � 2 0 ) ;
( v i ) T h e C l e a n A i r A c t , a s a m e n d e d ( 4 2 U . S . C . � � 1 8 5 7 e t s e q . , a s a m e n d e d b y
P u b . L . 9 1 - 6 0 4 ) ;
( v i i ) T h e N a t i o n a l E n v i r o n m e n t a l P o l i c y A c t o f 1 9 6 9 ( 4 2 U . S . C . � � 4 3 2 1 e t
s e q . ) ;
( v i i i ) T h e F e d e r a l W a t e r P o l l u t i o n C o n t r o l A c t , a s a m e n d e d ( 3 3 U . S . C . � � 1 2 5 1
e t s e q . , a s a m e n d e d b y P u b . L . 9 2 - 5 0 0 ) ;
( i x ) T h e e n v i r o n m e n t a l m i t i g a t i o n r e q u i r e m e n t s a n d c o m m i t m e n t s m a d e b y t h e
B o r r o w e r t h a t r e s u l t i n T I F I A L e n d e r ' s a p p r o v a l o f t h e F i n a l
E n v i r o n m e n t a l I m p a c t S t a t e m e n t ( i s s u e d p u r s u a n t t o 4 2 U . S . C . �
4 3 3 2 ( 2 ) ( C ) ) a n d i s s u a n c e o f t h e R e c o r d o f D e c i s i o n f o r t h e P r o j e c t ;
( x ) T h e E n d a n g e r e d S p e c i e s A c t , 1 6 U . S . C . � 1 5 3 1 , e t s e q . ;
( x i ) 2 3 U . S . C . � 1 3 8 [ 4 9 U . S . C . � 3 0 3 ] ;
E - 2
3 3 5
14352874.7
(xii) The health and safety requirements set forth in 23 C.F.R. § 635.1 08;
(xiii) The prevailing wage requirements set forth in 42 U.S.C. § 276a, 23 U.S.C.
§ 113, as supplemented by 29 C.F.R. Part 5, 23 C.F.R. §§ 635.117(f),
635.118 and FHWA Form 1273 §§ IV and V for those contracts that
involve construction of highway improvements;
(xiv) The Buy America requirements set forth in Section 165 of the Surface
Transportation Assistance Act of 1982 and implementing regulations (23
C.F.R. § 635.410);
(xv) The requirements of23 U.S.C. §§ 101et seq. and 23 C.F.R.; and
(xvi) The applicable requirements of 49 C.F.R. Part 26 relating to the
Disadvantaged Business Enterprise program.
E-3
336
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"
"
1 4 3 5 2 8 7 4 . 7
E x h i b i t F
H i g h P r o f i l e P r o j e c t O v e r s i g h t A g r e e m e n t
F o r 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
F - 1
3 3 7
14352874.7
Exhibit G
SR 91 Corridor Improvement Project
TIFIA Debt Service Schedule
G-1
338
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1 4 3 5 2 8 7 4 . 7
E x h i b i t H
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 I F I A D e b t S e r v i c e S t r u c t u r e
H - 1
3 3 9
14352874.7
Exhibit I
Forms of Opinions of Counsel to the Borrower
[Forms to be Attached]
H-1
340
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A G E N D A I T E M 1 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 p r i l 2 2 , 2 0 1 3
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 : A n n e M a y e r , E x e c u t i v e D i r e c t o r
S U B J E C T : A g r e e m e n t s f o r I n v e s t m e n t M a n a g e m e n t S e r v i c e 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 )
2 )
3 )
A w a r d A g r e e m e n t N o . 1 3 - 1 9 - 0 7 7 - 0 0 , t o L o g a n C i r c l e P a r t n e r s , L . P . a n d
A g r e e m e n t N o . 1 3 - 1 9 - 1 3 5 - 0 0 , t o P a y d e n & R y g e l I n v e s t m e n t M a n a g e m e n t
f o r i n v e s t m e n t m a n a g e m e n t s e r v i c e s f o r a f i v e - y e a r t e r m , a n d t w o a d d i t i o n a l
o n e - 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 p e r f o r m a n c e
o f u p t o s e v e n y e a r s , i n a n a g g r e g a t e a m o u n t o f $ 2 . 3 m i l l i o n , p l u s a
c o n t i n g e n c y a m o u n t o f $ 2 0 0 , 0 0 0 , f o r a t o t a l a m o u n t n o t t o e x c e e d i n a n
a g g r e g a t e v a l u e o f $ 2 . 5 m i l l i o n ;
A u t h o r i z e t h e C h a i r o r E x e c u t i v e D i r e c t o r , p u r s u a n t t o l e g a l c o u n s e l r e v i e w ,
t o e x e c u t e t h e a g r e e m e n t s , 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 u t h o r i z e t h e E x e c u t i v e D i r e c t o r o r d e s i g n e e t o a p p r o v e c o n t i n g e n c y w o r k
u p t o t h e t o t a l a u t h o r i z e d a m o u n t a s m a y b e r e q u i r e d d u r i n g t h e p e r i o d o f
s e r v i c 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 .
B A C K G R O U N D I N F O R M A T / O N :
I n c o n n e c t i o n w i t h t h e i s s u a n c e o f s a l e s t a x r e v e n u e b o n d s a n d t o l l r e v e n u e b o n d s
f o r t h e r e c e i p t o f T r a n s p o r t a t i o n I n f r a s t r u c t u r e F i n a n c e a n d I n n o v a t i o n A c t ( T I F I A )
l o a n f o r t h e 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 ( S R - 9 1 C I P ) , 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 e n e e d t o e n g a g e a n i n v e s t m e n t m a n a g e r . W i t h t h e
C o m m i s s i o n ' s d e b t p r o c e e d s f r o m t h e s a l e s t a x a n d t o l l r e v e n u e s u p p o r t e d p o r t i o n
o f t h e S R - 9 1 C I P , t h e i n d e n t u r e ( s ) f o r t h e b o n d s a n d T I F I A l o a n a g r e e m e n t w i l l
i n c l u d e m u l t i p l e a c c o u n t s c o n t a i n i n g i n v e s t m e n t s t h a t m u s t c o m p l y w i t h t h e
p e r m i t t e d i n v e s t m e n t l a n g u a g e o f t h e s p e c i f i c i n d e n t u r e , a s w e l l a s 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 . T h e e s t i m a t e d p r o c e e d s o f t h e s a l e s t a x b o n d s
a n d t o l l r e v e n u e s b o n d s a r e $ 4 4 5 m i l l i o n a n d $ 2 2 0 m i l l i o n , r e s p e c t i v e l y , a n d w i l l b e
m a i n t a i n e d i n i n v e s t m e n t a c c o u n t s f o r c o n s t r u c t i o n , c a p i t a l i z e d i n t e r e s t , a n d d e b t
s e r v i c e r e s e r v e . O t h e r o p e r a t i n g , c a p i t a l , a n d d e b t s e r v i c e r e s e r v e a c c o u n t s w i l l b e
A g e n d a I t e m 1 0
3 4 1
required under the TIFIA loan agreement and toll bonds indenture. In addition, the
Commission anticipates its annual contributions to construction cost, in the •
aggregate amount of approximately $1 06 million, will be deposited in the
construction fund.
Additionally, the Commission desires to engage an investment manager to initially
provide investment advisory services related to the Commission's operating funds
with the potential to provide investment management services of a portion of the
operating funds.
The investment managers will review the Commission's investment policy and
provide recommendations for changes as part of the annual investment policy
development process. The investment manager for the SR-91 CIP will also review
the draft indenture documents for the bonds and TIFIA loan and provide
recommendations for permitted investments and other matters. To the extent the
investment manager provides investment management services, they must adhere
to the Commission's investment policy objectives, in order of priority, of safety,
liquidity, and then yield.
Procurement Process
A request for proposals (RFP) for investment management services was released by
staff and advertised on February 14, 2013. Staff responded to all questions •
submitted by potential proposers prior to the February 21 deadline. Fifteen
organizations -Chandler Asset Management; Cutwater Asset Management;
Davidson Fixed Income Management; Garcia Hamilton & Associates; J.P. Morgan
Asset Management; LM Capital Group, LLC; Logan Circle Partners; Payden & Rygel
Investment Management; RBC Global Asset Management (U.S.) Inc.; REAMS Asset
Management; Riverside County Treasurer-Tax Collector; Sterling Capital
Management LLC; The PFM Group; US Bancorp Asset Management; and Wells
Capital Management -submitted proposals prior to the March 1 9 submittal
deadline. All 15 firms submitted responsive and responsible proposals. Utilizing
the evaluation criteria set forth in the RFP, the 15 firms were evaluated and scored
by an evaluation committee comprised of two Commission staff and a
representative from the Orange County Transportation Authority (OCTA).
Based on the evaluation committee's assessment of the written proposals and
pursuant to the terms of the RFP, the evaluation committee short listed and invited
five firms to the interview phase of the evaluation and selection process.
Interviews of the short listed firms -Chandler Asset Management, Logan Circle
Partners, Payden & Rygel Investment Management, RBC Global Asset Management
(U.S.) Inc., and The PFM Group -were conducted on April 11.
Agenda Item 1 0
342
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P u r s u a n t t o t h e t e r m s o f t h e R F P , t h e e v a l u a t i o n c o m m i t t e e r e c o m m e n d s
a g r e e m e n t s b e a w a r d e d t o L o g a n C i r c l e P a r t n e r s a n d P a y d e n & R y g e l I n v e s t m e n t
M a n a g e m e n t , a s t h e s e f i r m s e a r n e d t h e h i g h e s t t o t a l e v a l u a t i o n s c o r e s u n d e r t h e
e v a l u a t i o n c r i t e r i a t e r m s o f t h e R F P . L o g a n C i r c l e P a r t n e r s w a s d e e m e d m o s t
r e s p o n s i v e a n d w a s s e l e c t e d f o r i t s o v e r a l l p l a n t o s e r v e t h e C o m m i s s i o n .
T h e r e f o r e , i t w i l l b e a s s i g n e d i n v e s t m e n t m a n a g e m e n t s e r v i c e s f o r t h e S R - 9 1 C I P
f u n d s . P a y d e n & R y g e l I n v e s t m e n t M a n a g e m e n t w a s s e l e c t e d b e c a u s e o f i t s p o l i c y
r e c o m m e n d a t i o n s o n 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 n d e x p e r i e n c e m a n a g i n g
o t h e r g o v e r n m e n t o p e r a t i n g f u n d s . I t w i l l b e a s s i g n e d t o p r o v i d e i n v e s t m e n t
a d v i s o r y s e r v i c e s w i t h t h e p o t e n t i a l f o r i n v e s t m e n t m a n a g e m e n t s e r v i c e s o f t h e
C o m m i s s i o n ' s o p e r a t i n g f u n d s .
T h e r e c o m m e n d e d f i r m s ' f e e s w e r e c o m p e t i t i v e l y e s t a b l i s h e d a n d 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 u n d e r t h e a b o v e r e f e r e n c e d
p r o c u r e m e n t p r o c e s s . B o t h L o g a n C i r c l e P a r t n e r s a n d P a y d e n & R y g e l I n v e s t m e n t
M a n a g e m e n t o f f e r e d t h e m o s t a d v a n t a g e o u s c o m b i n a t i o n o f e x p e r i e n c e , r e l e v a n t
q u a l i f i c a t i o n s , a n d p r i c i n g . S t a f f i s c o n f i d e n t t h a t t h e r e c o m m e n d e d f i r m s w i l l
p r o v i d e t h e C o m m i s s i o n w i t h q u a l i t y s e r v i c e a t t h e b e s t p o s s i b l e p r i c e .
F i n a n c i a l I n f o r m a t i o n
I n F i s c a l Y e a r B u d g e t : Y e s Y e a r : F Y 2 0 1 3 / 1 4 A m o u n t : $ 6 0 0 , 0 0 0
N / A F Y 2 0 1 4 / 1 5 + 1 , 9 0 0 , 0 0 0
I n v e s t m e n t i n c o m e ; M e a s u r e A , N o S o u r c e o f F u n d s : M o t o r i s t A s s i s t a n c e , a n d T U M F B u d g e t A d j u s t m e n t : N / A r e v e n u e s
G L ! P r o j e c t A c c o u n t i n g N o . : X X X X X 6 5 3 0 2 V a r i o u s C o m m i s s i o n F u n d s
F i s c a l P r o c e d u r e s A p p r o v e d : ~ ~ I D a t e : I 0 4 / 1 5 / 1 3
A t t a c h m e n t s :
1 ) L o g a n C i r c l e P a r t n e r s , L . P . A g r e e m e n t N o . 1 3 - 1 9 - 0 7 7 - 0 0
2 ) P a y d e n & R y g e l I n v e s t m e n t m a n a g e m e n t A g r e e m e n t N o . 1 3 - 1 9 - 1 3 5 - 0 0
A g e n d a I t e m 1 0
3 4 3
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A T T A C H M E N T 1
A g r e e m e n t N o . 1 3 - 1 9 - 0 7 7 - 0 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
A G R E E M E N T F O R I N V E S T M E N T M A N A G E M E N T S E R V I C E S
W I T H L O G A N C I R C L E P A R T N E R S , L . P .
1 . P A R T I E S A N D D A T E .
T h i s A g r e e m e n t i s m a d e a n d e n t e r e d i n t o t h i s _ d a y o f , 2 0 1 3 ,
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 ( " t h e
C o m m i s s i o n " ) a n d L O G A N C I R C L E P A R T N E R S , L . P . ( " C o n s u l t a n t " ) .
2 . R E C I T A L S .
2 . 1 C o n s u l t a n t d e s i r e s t o p e r f o r m a n d 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
p r o v i s i o n o f c e r t a i n p r o f e s s i o n a l c o n s u l t i n g s e r v i c e s r e q u i r e d b y C o m m i s s i o n o n t h e
t e r m s a n d c o n d i t i o n s s e t f o r t h i n t h i s A g r e e m e n t . C o n s u l t a n t r e p r e s e n t s t h a t i t i s a
p r o f e s s i o n a l c o n s u l t a n t , e x p e r i e n c e d i n p r o v i d i n g i n v e s t m e n t m a n a g e m e n t s e r v i c e s ,
a n d i s f a m i l i a r w i t h t h e p l a n s o f C o m m i s s i o n .
2 . 2 C o m m i s s i o n d e s i r e s t o e n g a g e C o n s u l t a n t t o r e n d e r c e r t a i n
i n v e s t m e n t m a n a g e m e n t s e r v i c e s r e l a t e d t o t h e s a l e s t a x a n d t o l l r e v e n u e b o n d s
( B o n d s ) a n d 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 ' s T r a n s p o r t a t i o n I n f r a s t r u c t u r e F i n a n c e
a n d I n n o v a t i o n A c t l o a n ( L o a n ) f i n a n c i n g s i n c o n n e c t i o n w i t h 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 ( " P r o j e c t " ) a s s e t f o r t h h e r e i n . A d d i t i o n a l l y , t h e C o m m i s s i o n m a y
d e s i r e t o e n g a g e C o n s u l t a n t t o r e n d e r c e r t a i n i n v e s t m e n t m a n a g e m e n t s e r v i c e s r e l a t e d
t o o t h e r C o m m i s s i o n c a s h a n d i n v e s t m e n t s ( " O p t i o n a l P r o j e c t " ) a s s e t f o r t h h e r e i n ,
c o l l e c t i v e l y t h e " P r o j e c t s " .
3 . T E R M S .
3 . 1 G e n e r a l S c o p e o f S e r v i c e s . C o n s u l t a n t p r o m i s e s a n d a g r e e s t o
f u r n i s h t o C o m m i s s i o n a l l l a b o r m a t e r i a l s , t o o l s , e q u i p m e n t , s e r v i c e s , a n d i n c i d e n t a l a n d
c u s t o m a r y w o r k n e c e s s a r y t o f u l l y a n d a d e q u a t e l y p r o v i d e p r o f e s s i o n a l c o n s u l t i n g
s e r v i c e s a n d a d v i c e o n v a r i o u s i s s u e s a f f e c t i n g t h e d e c i s i o n s o f C o m m i s s i o n r e g a r d i n g
t h e P r o j e c t s a n d o n o t h e r p r o g r a m s a n d m a t t e r s a f f e c t i n g C o m m i s s i o n , h e r e i n a f t e r
r e f e r r e d t o a s " S e r v i c e s " . T h e S e r v i c e s a r e m o r e p a r t i c u l a r l y d e s c r i b e d i n E x h i b i t " A "
a t t a c h e d h e r e t o a n d i n c o r p o r a t e d h e r e i n b y r e f e r e n c e . A l l S e r v i c e s s h a l l b e s u b j e c t t o ,
a n d p e r f o r m e d i n a c c o r d a n c e w i t h , t h i s A g r e e m e n t , t h e e x h i b i t s a t t a c h e d h e r e t o a n d
i n c o r p o r a t e d h e r e i n b y r e f e r e n c e , a n d a l l a p p l i c a b l e l o c a l , s t a t e , a n d f e d e r a l l a w s , r u l e s
a n d r e g u l a t i o n s .
1
3 4 4
3.2 Term. The term of this Agreement shall commence upon the
issuance of the Bonds and closing of the Loan for an initial five year period, unless •
earlier terminated as provided herein. The Commission shall have the option, in its sole
discretion, to extend the term of the Agreement for two additional one-year periods.
Consultant shall complete the Services within the term of this Agreement and shall meet
any other established schedules and deadlines.
3.3 Schedule of Services. Consultant sha11 perform the Services
expeditiously, within the term of this Agreement, and in accordance with the Scope of
Services set forth in Exhibit "A" attached hereto and incorporated herein by reference.
Consultant represents that it has the professional and technical personnel required to
perform the Services in conformance with such conditions. In order to facilitate
Consultant's conformance with the Schedule, the, Commission shall respond to
Consultant's submittals in a timely manner. Upon r~c:Juest of the Commission,
Consultant shall provide a more detailed schedule of antidp8:ted performance to meet
the Schedule of Services.
·~i:;,:.i
3.4 Independent Contractor;·:.Control and Payment:,·:of Subordinates.
The Services shall be performed .. by ConsultanMt:trgerdfs supervisioli't&;}'Consultant will
determine the means, method '~md ;details of p~:rf~rming the Services subject to the
requirements of this Agreement. Commission retains Consultant on an independent
contractor basis and Consultant is not an employee of Gpmmission. Consultant retains
the right to perform similar or different servioes for others during the term of this
Agreement. Any adgiti¢nal personnel performing the Servi~s under this Agreement on •
behalf of Consultantt~~hall not be employees of Comrmis~ion and shall at all times be
under Consultant's' ~«elusive di.rection and control. Consultant shall pay all wages,
salaries, and other amounts due such personnel in connection with their performance of
Services uru:ter;.this Agreement and as required by law. Consultant shall be responsible
for all reports and·:obligations respecting such additional personnel, including, but not
limited to: social security taxes, income taxwithholding, unemployment insurance, and
workers• compensation insurance.
3.5 Conformance to Applicable Requirements. All work prepared by
Consultant shall be subject to the approval of Commission.
3.6 Substitution of Key Personnel. Consultant has represented to
Commission that certain key' personnel will perform and coordinate the Services under
this Agreement. ShoUld one or more of such personnel become unavailable,
Consultant may substitute other personnel of at least equal competence and experience
upon written approval of Commission. In the event that Commission and Consultant
cannot agree as to the substitution of key personnel, Commission shall be entitled to
terminate this Agreement for cause, pursuant to provisions of Section 3.16 of this
Agreement. The key personnel for performance of this Agreement are as follows:
2
345
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3 . 7 C o m m i s s i o n ' s R e p r e s e n t a t i v e . C o m m i s s i o n h e r e b y d e s i g n a t e s
L _ I N S E R T N A M E O R T I T L E _ _ ] , o r h i s o r h e r d e s i g n e e , t o a c t a s i t s r e p r e s e n t a t i v e
f o r t h e p e r f o r m a n c e o f t h i s A g r e e m e n t ( " C o m m i s s i o n ' s R e p r e s e n t a t i v e " ) . C o m m i s s i o n ' s
r e p r e s e n t a t i v e s h a l l h a v e t h e p o w e r t o a c t o n b e h a l f o f C o m m i s s i o n f o r a l l p u r p o s e s
u n d e r t h i s A g r e e m e n t . C o n s u l t a n t s h a l l n o t a c c e p t d i r e c t i o n f r o m a n y p e r s o n o t h e r t h a n
C o m m i s s i o n ' s R e p r e s e n t a t i v e o r h i s o r h e r d e s i g n e e .
3 . 8 C o n s u l t a n t ' s R e p r e s e n t a t i v e . C o n s u l t a n t h e r e b y d e s i g n a t e s
L _ I N S E R T N A M E O R T I T L E _ _ ] , o r h i s o r h e r d e s i g n e e , t o a c t a s i t s r e p r e s e n t a t i v e
f o r t h e p e r f o r m a n c e o f t h i s A g r e e m e n t ( " C o n s u l t a n t ' s R e p r e s e n t a t i v e " ) . C o n s u l t a n t ' s
R e p r e s e n t a t i v e s h a l l h a v e f u l l a u t h o r i t y t o r e p r e s e n t a n d < : ~ C f o n b e h a l f o f t h e C o n s u l t a n t
f o r a l l p u r p o s e s u n d e r t h i s A g r e e m e n t . T h e C o n s u l t a n r s R e p r e s e n t a t i v e s h a l l s u p e r v i s e
a n d d i r e c t t h e S e r v i c e s , u s i n g h i s o r h e r b e s t s K i l l a n d a t t e n t i o n , a n d s h a l l b e
r e s p o n s i b l e f o r a l l m e a n s , m e t h o d s , t e c h n i q u e s , s e q u e n c e s a n d p r o c e d u r e s a n d f o r t h e
s a t i s f a c t o r y c o o r d i n a t i o n o f a l l p o r t i o n s o f t h e S e r v i c e s u n d e r t h t s A g r e e m e n t .
3 . 9 C o o r d i n a t i o n o f S e r v i Q e ' s : C o n s u l t a n t a g r e e s t e w o r k c l o s e l y w i t h
C o m m i s s i o n s t a f f i n t h e p e r f o r m a n c e o f S e r V i c e s a n d s ! 1 ? ~ . 1 1 b e a v a i l a b l e H o C o m m i s s i o n ' s
s t a f f , c o n s u l t a n t s a n d o t h e r s t a f f ~ : ! < a l l r e a s o n a b l . ~ t i m ~ . ~ 1 ; ~ ~ � � ~ " . , , ; ' . � � "
3 . 1 0 S t a n d a r d o f C l a f e 1 � : T i c e n s e s . C o n ~ u l t a n t s h a l l p e r f o r m t h e S e r v i c e s
u n d e r t h i s A g r e e m e n t i n a s k i l l f u l ~ . c o i l 1 p e t e n t m a n n e r , c o n s i s t e n t w i t h t h e s t a n d a r d
g e n e r a l l y r e c o g n i z e d a s . p e i n g e m p l o y ~ d b y p r o f e s s i o n a l s i n t h e s a m e d i s c i p l i n e i n t h e
S t a t e o f C a l i f o r n i a . . G ( m s t d t a n t r e p r e s e n t s a n d m a i n t a i n s t h a t i t i s s k i l l e d i n t h e
p r o f e s s i o n a l c a l l i n g r y e c e s s a f 1 � \ t o p e r f o r m t h e S e r v i 6 e ~ . . � � C o n s u l t a n t w a r r a n t s t h a t a l l
e m p l o y e e s a n d s u b c b n t r a c t o r s , ~ h a l l h a v e ' ~ u f f r c i e n t s k i l l a n d e x p e r i e n c e t o p e r f o r m t h e
S e r v i c e s a s s i g n e d t o ' t h e m . R ! ~ a l l y , C o n s u l t a n t r e p r e s e n t s t h a t i t , i t s e m p l o y e e s a n d
s u b c o n t r a c t o r ~ h a v e a l l J ~ ~ n s g $ , ' , ~ e r m i t s , q u a l i f i c a t i o n s a n d a p p r o v a l s o f w h a t e v e r
n a t u r e t h a t a r e l ~ g a U y r e q b i r ~ ; d t o p e r f o r m t h e S e r v i c e s a n d t h a t s u c h l i c e n s e s a n d
a p p r o v a l s s h a l l b e m a i n t a i n e d t h r o u g h o u t t h e t e r m o f t h i s A g r e e m e n t . C o n s u l t a n t s h a l l
p e r f o r m ~ a t i t s o w n c o s t a n d e x p e n s e a n d w i t h o u t r e i m b u r s e m e n t f r o m C o m m i s s i o n , a n y
S e r v i c e s n e ? e s s a r y t o c o r r e c t e r r o r s o r o m i s s i o n s w h i c h a r e c a u s e d b y t h e C o n s u l t a n t ' s
f a i l u r e t o c 6 m p l y w i t h t h e s t a n d a r d o f c a r e p r o v i d e d f o r h e r e i n , a n d s h a l l b e f u l l y
r e s p o n s i b l e t o t h e C o m m i s s i ~ l i ' l f o r a l l d a m a g e s a n d o t h e r l i a b i l i t i e s p r o v i d e d f o r i n t h e
i n d e m n i f i c a t i o n p r o v i s i o n s o f A t h i s A g r e e m e n t a r i s i n g f r o m t h e C o n s u l t a n t ' s e r r o r s a n d
o m i s s i o n s .
3 . 1 1 L a w s ' a n d R e g u l a t i o n s . C o n s u l t a n t s h a l l k e e p i t s e l f f u l l y i n f o r m e d o f
a n d i n c o m p l i a n c e w i t h a l l l o c a l , s t a t e a n d f e d e r a l l a w s , r u l e s a n d r e g u l a t i o n s i n a n y
m a n n e r a f f e c t i n g t h e p e r f o r m a n c e o f t h e P r o j e c t o r t h e S e r v i c e s , i n c l u d i n g a l l G a l / O S H A
r e q u i r e m e n t s , a n d s h a l l g i v e a l l n o t i c e s r e q u i r e d b y l a w . C o n s u l t a n t s h a l l b e l i a b l e f o r a l l
v i o l a t i o n s o f s u c h l a w s a n d r e g u l a t i o n s i n c o n n e c t i o n w i t h S e r v i c e s . I f t h e C o n s u l t a n t
p e r f o r m s a n y w o r k k n o w i n g i t t o b e c o n t r a r y t o s u c h l a w s , r u l e s a n d r e g u l a t i o n s a n d
w i t h o u t g i v i n g w r i t t e n n o t i c e t o C o m m i s s i o n , C o n s u l t a n t s h a l l b e s o l e l y r e s p o n s i b l e f o r
a l l c o s t s a r i s i n g t h e r e f r o m . C o n s u l t a n t s h a l l d e f e n d , i n d e m n i f y a n d h o l d C o m m i s s i o n , i t s
o f f i c i a l s , d i r e c t o r s , o f f i c e r s , e m p l o y e e s a n d a g e n t s f r e e a n d h a r m l e s s , p u r s u a n t t o t h e
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indemnification provisions of this Agreement, from any claim or liability arising out of any
failure or alleged failure to comply with such laws, rules or regulations. •
3.12 Insurance.
3.12.1 Time for Compliance. Consultant shall not commence work
under this Agreement until it has provided evidence satisfactory to the Commission that
it has secured all insurance required under this section. In addition, Consultant shall not
allow any subcontractor to commence work on any subcontract until it has secured all
insurance required under this section.
3.12.2 Minimum Requirements.: Consultant shall, at its expense,
procure and maintain for the duration of the Agreemeiltinsurance against claims for
injuries to persons or damages to property which may ad$~ from or in connection with
the performance of the Agreement by the;J3onsultant, lts~'lagents, representatives,
employees or subcontractors. Consultantsryatl also require alt:-~f its subcontractors to
procure and maintain the same insuran~~>for the duration of the Agreement. Such
insurance shall meet at least the following m~~imum le\{e:ts of coverage:
(A) \~~i'nimum Scope cifl~·~urance. Coverage shall be at
least as broad as the latest versjon· of tl;l.e following: .(1) General Liability: Insurance
Services Office Commercial General LiabiliiY:-:'Coverage{occurrence form CG 0001); (2)
Automobile Liability: Insurance Servi~es Office Business,~)\uto Coverage form number
CA 0001, code 1 (any auto); and (3) ·workers' Compt:Jnsafion and Employer's Liability: •
Workers' Compensation insuraf'lce as required by the State of California and Employer's
Liability Insurance: Aqditionany; Consultant .shall have errors and omissions insurance
[or investment advisor0;pr:~fessionalliability lb~ll,lrance and additional coverage through a
fidelity bonq;and umbrell'aiinsuraHGe, ',;·;, ·
'.,y,
;.'·'"
.•..... .. (B) ... MinimuM::;U:imits of Insurance. Consultant shall
maintain limits no less than: (1) General Liability: $2,000,000 per occurrence for bodily
injury, persor)al injury and property•·d~mage. If Commercial General Liability Insurance
or other form with general aggregat~; limit is used, either the general aggregate limit
shall apply separately to this Agreement/location or the general aggregate limit shall be
twice the required occurrence limit; (2) Automobile Liability: $1,000,000 per accident for:
bodily injury and pr()perty damage; (3) if Consultant has an employees, Workers'
Compensation and Employer's Liability: Workers' Compensation limits as required by
the Labor Code of the State of California; Employer's Practices Liability limits of
$1,000,000 per accident; (4) Errors and Omissions [or Investment Advisor Professional
Liability]: $10 million; and (5) Fidelity Bond and Umbrella: $1 million.
3.12.3 {Reserved}
3.12.4 Insurance Endorsements. The insurance policies shall
contain the following provisions, or Consultant shall provide endorsements on forms
approved by the Commission to add the following provisions to the insurance policies:
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( A ) G e n e r a l L i a b i l i t y . T h e g e n e r a l l i a b i l i t y p o l i c y s h a l l b e
e n d o r s e d t o s t a t e t h a t : ( 1 ) t h e C o m m i s s i o n , i t s d i r e c t o r s , o f f i c i a l s , o f f i c e r s , e m p l o y e e s
a n d a g e n t s s h a l l b e c o v e r e d a s a d d i t i o n a l i n s u r e d s w i t h r e s p e c t t o t h e S e r v i c e s o r
o p e r a t i o n s p e r f o r m e d b y o r o n b e h a l f o f t h e C o n s u l t a n t , i n c l u d i n g m a t e r i a l s , p a r t s o r
e q u i p m e n t f u r n i s h e d i n c o n n e c t i o n w i t h s u c h w o r k ; a n d ( 2 ) t h e i n s u r a n c e c o v e r a g e s h a l l
b e p r i m a r y i n s u r a n c e a s r e s p e c t s t h e C o m m i s s i o n , i t s d i r e c t o r s , o f f i c i a l s , o f f i c e r s ,
e m p l o y e e s a n d a g e n t s , o r i f e x c e s s , s h a l l s t a n d i n a n u n b r o k e n c h a i n o f c o v e r a g e
e x c e s s o f t h e C o n s u l t a n t ' s s c h e d u l e d u n d e r l y i n g c o v e r a g e . A n y i n s u r a n c e o r s e l f -
i n s u r a n c e m a i n t a i n e d b y t h e C o m m i s s i o n , i t s d i r e c t o r s , o f f i c i a l s , o f f i c e r s , e m p l o y e e s a n d
a g e n t s s h a l l b e e x c e s s o f t h e C o n s u l t a n t ' s i n s u r a n c e ; ' : E t h c l t s h a l l n o t b e c a l l e d u p o n t o
c o n t r i b u t e w i t h i t i n a n y w a y . " �
( B ) A u t o m o b i l e U a b i f i t y . T h e . a u t o m o b i l e l i a b i l i t y p o l i c y
s h a l l b e e n d o r s e d t o s t a t e t h a t : ( 1 ) t h e C o m m i s s i o n , i t s d i r e c t o r s , o f f i c i a l s , o f f i c e r s ,
e m p l o y e e s a n d a g e n t s s h a l l b e c o v e r e . p ; , : a s a d d i t i o n a l i n s J ' r ~ ~ s w i t h r e s p e c t t o t h e
o w n e r s h i p , o p e r a t i o n , m a i n t e n a n c e , u s e ' F q o a d i n g o r u n l o a d i n g o l a n y a u t o o w n e d ,
l e a s e d , h i r e d o r b o r r o w e d b y t h e C o n s u l t a n f o r : � J o r w h i c h . t h e C o n s d l l a ~ t i s r e s p o n s i b l e ;
a n d ( 2 ) t h e i n s u r a n c e c o v e r a g e s h a l l b e p r i m a r ) t ; i n s u J l a n c e a s r e s p e c t s ' t l ~ C o m m i s s i o n ,
i t s d i r e c t o r s , o f f i c i a l s , o f f i c e r s , e m j l q y e e s a n d a g ~ ~ t s , o r i f e x c e s s , s l i : a l l s t a n d i n a n
u n b r o k e n c h a i n o f c o v e r a g e e x c e s � . : o f t h e C o n s u l t a f i f s s c h e d u l e d u n d e r l y i n g c o v e r a g e .
A n y i n s u r a n c e o r s e l f - i n s u r a n c e m a i n t a i n e d b y t h e C o ~ t r ~ i s s i o n , i t s d i r e c t o r s , o f f i c i a l s ,
o f f i c e r s , e m p l o y e e s a n d a g e n t s s h a l l b e e x c e s s r ~ f t h e G d ' n s y l t a n t ' s i n s u r a n c e a n d s h a l l
n o t b e c a l l e d u p o n t o c o n t r i B : u t e w i t h i t i n a n y w a y ! ? 7 \ 0 , > ; ; ; ,
( C ) : , W o r k e r s ' " ' " > O b m p e n s a t i o n a n d E m p l o y e r s L i a b i l i t y
C o v e r a g e . T h e i n s u r e r s h a l l a ' g r e e t o v J a f v e a l l r i g h t s o f s u b r o g a t i o n a g a i n s t t h e
C o m m i s s i o n , . i t s d i r e c t o r s , o f f i c 1 a l s , > 1 o f f i c e r s , . : . ~ m p l o y e e s a n d a g e n t s f o r l o s s e s p a i d
u n d e r t h e t e r m s o f t h e i n s u r a n c e p o l i ~ y , w h i ~ h a r i s e f r o m w o r k p e r f o r m e d b y t h e
C o n s u l t a n t . � � �
{ D ) A l l C o v e r a g e s . E a c h i n s u r a n c e p o l i c y r e q u i r e d b y t h i s
A g r e e m e n t s h a l l b e e n d o r s e d t o s t a t e t h a t : ( A ) c o v e r a g e s h a l l n o t b e s u s p e n d e d ,
v o i d e d o r c a n c e l e d e x c e p t a f t e r t h i r t y ( 3 0 ) d a y s p r i o r w r i t t e n n o t i c e b y c e r t i f i e d m a i l ,
r e t u r n r e c e i p t r e q u e s t e d , h a s b e e n g i v e n t o t h e C o m m i s s i o n ; a n d , ( B ) a n y f a i l u r e t o
c o m p l y w i t h r e p o r t i n � g o r o t h e r p r o v i s i o n s o f t h e p o l i c i e s , i n c l u d i n g b r e a c h e s o f
w a r r a n t i e s , s h a l l n o t a f f e c t c o v e r a g e p r o v i d e d t o t h e C o m m i s s i o n , i t s d i r e c t o r s , o f f i c i a l s ,
o f f i c e r s , e m p l o y e e s a n d a g e n t s .
3 . 1 2 . 5 D e d u c t i b l e s a n d S e l f - I n s u r a n c e R e t e n t i o n s . A n y d e d u c t i b l e s
o r s e l f - i n s u r e d r e t e n t i o n s m u s t b e d e c l a r e d t o a n d a p p r o v 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 d o e s n o t a p p r o v e t h e d e d u c t i b l e s o r s e l f - i n s u r e d r e t e n t i o n s a s p r e s e n t e d ,
C o n s u l t a n t s h a l l g u a r a n t e e t h a t , 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 , e i t h e r : ( 1 ) t h e i n s u r e r
s h a l l r e d u c e o r e l i m i n a t e s u c h d e d u c t i b l e s o r s e l f - i n s u r e d r e t e n t i o n s a s r e s p e c t s t h e
C o m m i s s i o n , i t s d i r e c t o r s , o f f i c i a l s , o f f i c e r s , e m p l o y e e s a n d a g e n t s ; o r , ( 2 ) t h e
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Consultant shall procure a bond guaranteeing payment of losses and related
investigation costs, claims and administrative and defense expenses. •
3.12.6 Acceptability of Insurers. Insurance is to be placed with
insurers with a current A.M. Best's rating no less than A:VIII, licensed to do business in
California, and satisfactory to the Commission.
3.12. 7 Verification of Coverage. Consultant shall furnish
Commission with original certificates of insurance and endorsements effecting coverage
required by this Agreement on forms satisfactory to th~t1:Gommission. The certificates
and endorsements for each insurance policy shall be ,~igned by a person authorized by
that insurer to bind coverage on its behalf. All certificates and endorsements must be
received and approved by the Commission before work commences. The Commission
reserves the right to require complete, certified copies of all ,required insurance policies,
at any time. <;~~~;•;:
3.13 Safety. Consultant shaH execute and mai
avoid injury or damage to any person or'pr~perty. l(t carrying a "ts Services, the
Consultant shall at all times be in ompliance \.vith auq,a~plicable local;' .• :ite and federal
laws, rules and regulations, andvi , !:.exercise allr;jil~cessary precaution~· for the safety
of employees appropriate to the ·•.· ure o{the work·a;,dthe conditions under which the ' '"· ··> "1'-0~ .. •y,
work is to be performed. Safety prec~uti6ns as applicao1e:,,shall include, but shall not be
limited to: (A) adequate.Jife protecti0n,and life/~aving e6f~ipment and procedures; (S)
instructions in accid~!jl.t:,pr~vention for~~~ employee$\):61J1d subcontractors, such as safe •
walkways, scaffold'~·~;i';fall protection lad(jers, bridges~~~~ang planks, confined space
procedures, trenchintr<lnd shot:jvg, equiprn,e~t and other•safety devices, equipment and
wearing apparel as are· neces ·c ··· or lawfl.Jl'lY required to prevent accidents or injuries;
and (C) aoeq~.:t~!~, facilities , e .Proper inspection and maintenance of all safety
measur~.9~ ,• ... AiV\.;.
3.14 Fe~§.and Payment.
. 3.14.1 Cbmpensation. Consultant shall receive compensation,
including authoriz~d reimbur~~1)1ents, for all Services rendered under this Agreement at
the rates set forth in Exhib,itc"B" attached hereto. The total compensation shall not
exceed L_INSERi WRITtE;N DOLLAR AMOUNT __j ($[__INSERT NUMERICAL
DOLLAR AMOUNT __j) without written approval of Commission's Executive Director
('Total Compensation"). Extra Work may be authorized, as described below, and if
authorized, will be compensated at the rates and manner set forth in this Agreement.
· 3.14.2 Payment of Compensation. Consultant shall submit to
Commission a monthly statement which indicates work completed and hours of
Services rendered by Consultant. The statement shall describe the amount of Services
and supplies provided since the initial commencement date, or since the start of the
subsequent billing periods, as appropriate, through the date of the statement.
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C o m m i s s i o n s h a l l , w i t h i n 4 5 d a y s o f r e c e i v i n g s u c h s t a t e m e n t , r e v i e w t h e s t a t e m e n t a n d
p a y a l l a p p r o v e d c h a r g e s t h e r e o n . �
3 . 1 4 . 3 R e i m b u r s e m e n t f o r E x p e n s e s . C o n s u l t a n t s h a l l n o t b e
r e i m b u r s e d f o r a n y e x p e n s e s u n l e s s a u t h o r i z e d i n w r i t i n g b y C o m m i s s i o n .
3 . 1 4 . 4 E x t r a W o r k . A t a n y t i m e d u r i n g t h e t e r m o f t h i s A g r e e m e n t ,
C o m m i s s i o n m a y r e q u e s t t h a t C o n s u l t a n t p e r f o r m E x t r a W o r k . A s u s e d h e r e i n , " E x t r a
W o r k " m e a n s a n y w o r k w h i c h i s d e t e r m i n e d b y C o m m i s s i o n t o b e n e c e s s a r y f o r t h e
p r o p e r c o m p l e t i o n o f t h e P r o j e c t , b u t w h i c h t h e p a r t i e s , d i d n o t r e a s o n a b l y a n t i c i p a t e
w o u l d b e n e c e s s a r y a t t h e e x e c u t i o n o f t h i s A g r e e m e n t . C o n s u l t a n t s h a l l n o t p e r f o r m ,
n o r b e c o m p e n s a t e d f o r , E x t r a W o r k w i t h o u t w r i t t e n a u t h o r i z a t i o n f r o m C o m m i s s i o n ' s
E x e c u t i v e D i r e c t o r .
3 . 1 5 A c c o u n t i n g . R e c o r d s . � w o n s u l t a n t s h a H m a i n t a i n c o m p l e t e a n d
a c c u r a t e r e c o r d s w i t h r e s p e c t t o 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 a n d f e e s c h a r g e d
u n d e r t h i s A g r e e m e n t . A l l s u c h r e c o r d s s h a l l b e c l e a r l y i d e n t i f i a b l e , C o n s u l t a n t s h a l l
a l l o w a r e p r e s e n t a t i v e o f C o m m i s s i o n d u r i n g n ( i ) r m a l b u s i n e s s h o u r s t o e x a m i n e , a u d i t ,
a n d m a k e t r a n s c r i p t s o r c o p i e s . o f s u c h r e c o ' r d s a . f \ l ~ a n y o t h e r d o c u m e n t s c r e a t e d
p u r s u a n t t o t h i s A g r e e m e n t . C o . ~ s u l t a n t s h a l l ~ ~ ~ $ ~ i n s p e c t i o n o f a l l w o r k , d a t a ,
d o c u m e n t s , p r o c e e d i n g s , a n d a c t f ! i / i t i e s - r e l a t e d t o t h e A g r e e m e n t f o r a p e r i o d o f t h r e e
( 3 ) y e a r s f r o m t h e d a t e o f f i n a l m a t t i r i t i e s o f t h e t o l l r e v e n u e - s u p p o r t e d d e b t i s s u e d a n d
r e l a t e d t o t h i s A g r e e m e n t . � �
' " - " "
3 . 1 6 . : : ; r e r m i ~ ~ l l e g o f A g r e ~ m e n t .
' ; \ � ' ' '
3 : 1 6 . 1 G r o u n d s f o r T e r m i n a t i o n . C o m m i s s i o n m a y , b y w r i t t e n
n o t i c e t o C o n s ; l \ I J t a n t , t e r m i n a t E ! : ~ t h e W h o l e o r a n y p a r t o f t h i s A g r e e m e n t a t a n y t i m e a n d
w i t h o u t c a u s e b y g i v i n g w r i t t ' E ! t l i n o t i c e t o C o n s u l t a n t o f s u c h t e r m i n a t i o n , a n d s p e c i f y i n g
t h e e f f e c t i v e d a t e t h e r e o f . U p o n t e r m i n a t i o n ; C o n s u l t a n t s h a l l b e c o m p e n s a t e d o n l y f o r
t h o s e s e r v i c e s w h i c h h a v e b e e n f u l l y a n d a d e q u a t e l y r e n d e r e d t o C o m m i s s i o n t h r o u g h
t h e e f f e c t i v e d a t e o f t h e t e r m i n a t i o n , a n d C o n s u l t a n t s h a l l b e e n t i t l e d t o n o f u r t h e r
c o m p e n s a t i o n , C o n s u l t a n t � m a y n o t t e ' r m i n a t e t h i s A g r e e m e n t e x c e p t f o r c a u s e .
' 3 . 1 6 . 2 E f f e c t o f T e r m i n a t i o n . I f t h i s A g r e e m e n t i s t e r m i n a t e d a s
p r o v i d e d h e r e i n , C o m m i s s i o n m a y r e q u i r e C o n s u l t a n t t o p r o v i d e a l l f i n i s h e d o r
u n f i n i s h e d D o c u m e n t s a n d D a t a , a s d e f i n e d b e l o w , a n d o t h e r i n f o r m a t i o n o f a n y k i n d
p r e p a r e d b y C o n s u l t a n t i n c o n n e c t i o n w i t h t h e p e r f o r m a n c e o f S e r v i c e s u n d e r t h i s
A g r e e m e n t . C o n s u l t a n t s h a l l b e r e q u i r e d t o p r o v i d e s u c h d o c u m e n t a n d o t h e r
i n f o r m a t i o n w i t h i n f i f t e e n ( 1 5 ) d a y s o f t h e r e q u e s t .
3 . 1 6 . 3 A d d i t i o n a l S e r v i c e s . I n t h e e v e n t t h i s A g r e e m e n t i s
t e r m i n a t e d i n w h o l e o r i n p a r t a s p r o v i d e d h e r e i n , C o m m i s s i o n m a y p r o c u r e , u p o n s u c h
t e r m s a n d i n s u c h m a n n e r a s i t m a y d e t e r m i n e a p p r o p r i a t e , s e r v i c e s s i m i l a r t o t h o s e
t e r m i n a t e d .
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3.17 Delivery of Notices. All notices permitted or required under this
Agreement shall be given to the respective parties at the following address, or at such •
other address as the respective parties mc;~y provide in writing for this purpose:
CONSULT ANT:
Attn: -------
COMMISSION:
Riverside County
Transportation Commission
4080 Lemon Street, 3rd Floor
Riv,erside, CA 92501
Attn!Executive Director
Such notice shall be deemed made when personally delivered or when
mailed, forty-eight (48) hours after deposit in the U.S. Mail;: first class postage prepaid
and addressed to the party at its applicable,address. Actu~.J notice shall be deemed
adequate notice on the date actual notice. oe(li:.trred, regardless··of•the method of service.
3.18 Ownership of Materials/Confidentiality . ..
3.18.1 Docum~nts & Data. Thi~.lAgreement creat~~ an exclusive
and perpetual license for Commis,s,ion::'to .Gopy, use, modify, reuse, or sub-license any
and all copyrights and designs embodied;.in plans, specifications, studies, drawings,
estimates, materials, data and other documents or works .. of authorship fixed in any
tangible medium of expr®sion, including but nc>t' limited tO:;.· physical drawings or data •
magnetically or otherwise recorded on ,computer di$kettes, which are prepared or
caused to be prepared by Consfilltant under-this Agreement ("Documents & Data").
, / • .. Con~itlt.~ot s~all require at,J subcontractors to agree in writing that
Oommi~~iq:~ is gre~oted an it#xclusive and:;perpetual license for any Documents & Data
the su~rontractor prepares under this Agreement.
Consultant represents and warrants that Consultant has the legal
right to grant the exclusive.;. and perpetual license for all such Documents & Data.
Consultant makes no such representation and warranty in regard to Documents & Data
which were prepared by design professionals other than Consultant or proyided to
Consultant by the Comr,:nission.
Commission shall not be limited in any way in its use of the
Documents & Data at any time, provided that any such use not within the purposes
intended by this Agreement shall be at Commission's sole risk.
3.18.2 Intellectual Property. In addition, Commission shall have
and retain all right, title and interest (including copyright, patent, trade secret and other
proprietary rights) in all plans, specifications, studies, drawings, estimates, materials,
data, computer programs or software and source code, enhancements, documents, and
any and all works of authorship fixed in any tangible medium or expression, including
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b u t n o t l i m i t e d t o , p h y s i c a l d r a w i n g s o r o t h e r d a t a m a g n e t i c a l l y o r o t h e r w i s e r e c o r d e d o n
c o m p u t e r m e d i a ( " I n t e l l e c t u a l P r o p e r t y " ) p r e p a r e d o r d e v e l o p e d b y o r o n b e h a l f o f
C o n s u l t a n t u n d e r t h i s A g r e e m e n t a s w e l l a s a n y o t h e r s u c h I n t e l l e c t u a l P r o p e r t y
p r e p a r e d o r d e v e l o p e d b y o r o n b e h a l f o f C o n s u l t a n t u n d e r t h i s A g r e e m e n t .
T h e C o m m i s s i o n s h a l l h a v e a n d r e t a i n a l l r i g h t , t i t l e a n d i n t e r e s t i n
I n t e l l e c t u a l P r o p e r t y d e v e l o p e d o r m o d i f i e d u n d e r t h i s A g r e e m e n t w h e t h e r o r n o t p a i d
f o r w h o l l y o r i n p a r t b y C o m m i s s i o n , w h e t h e r o r n o t d e v e l o p e d i n c o n j u n c t i o n w i t h
C o n s u l t a n t , a n d w h e t h e r o r n o t d e v e l o p e d b y C o n s u l t a n t . C o n s u l t a n t w i l l e x e c u t e
s e p a r a t e w r i t t e n a s s i g n m e n t s o f a n y a n d a l l r i g h t s t o t h e t , a b o v e r e f e r e n c e d I n t e l l e c t u a l
P r o p e r t y u p o n r e q u e s t o f C o m m i s s i o n .
C o n s u l t a n t s h a l l a l s o b e r e s p o Q s i 6 r e t o o b t a i n i n w r i t i n g s e p a r a t e
w r i t t e n a s s i g n m e n t s f r o m a n y s u b c o n t r a c t o r s o r a g e h t s o f ' ~ ~ s u l t a n t o f a n y a n d a l l r i g h t
t o t h e a b o v e r e f e r e n c e d I n t e l l e c t u a l P r o p e r t y ~ " : S h o u l d O ~ t l S I . J i t a n t , e i t h e r d u r i n g o r
f o l l o w i n g t e r m i n a t i o n o f t h i s A g r e e m e n t , d ~ s i r e t o u s e a n y b : f , ~ t h e a b o v e - r e f e r e n c e d
I n t e l l e c t u a l P r o p e r t y , i t s h a l l f i r s t o b t a i n t h e ! J r i t t e n a p p r o v a l o f t h e ' G ( ; ) m m i s s i o n .
' ~ / � � ' . ,
A l l m a t e r i a l s a p d d o c u m e n t S l ; Y i f h i Q t l ' , W e r e d e v e l o p e d , , o r p r e p a r e d b y
t h e C o n s u l t a n t f o r g e n e r a l u s e p f , i , ~ r , t o t h e e x e c a t i ~ ~ 1 ! 8 t t h i s A g r e e m e n t ' a n d w h i c h a r e
n o t t h e c o p y r i g h t o f a n y o t h e r ) : ) a r t y ' O r p u b l i c l y a ~ a i l a b l e a n d a n y o t h e r c o m p u t e r
a p p l i c a t i o n s , s h a l l c o n t i n u e t o b e t h e p t o t t > e r t y o f t h e C o n s u l t a n t . H o w e v e r , u n l e s s
o t h e r w i s e i d e n t i f i e d a n d s t a t e d p r i o r - t o e x e c u t i o n o l ' t h i s A g r e e m e n t , C o n s u l t a n t
r e p r e s e n t s a n d w a r r a n t $ ' t h a t i t h a s t h e " r i g h t t o g r a n 1 ; ~ 1 \ } e e x c l u s i v e a n d p e r p e t u a l l i c e n s e
f o r a l l s u c h I n t e l l e c t u a l P r o p e r t y a s p r o v i d e d h e r e i n . ' ' ~ 0 ~ t
' > ; : : ~ ' , c
C o m m i s s i o n f u r t h e r i s g F ~ n t e d b y C o n s u l t a n t a n o n - e x c l u s i v e a n d
p e r p e t u a l l i ~ e n s e t o c o p y . u s e , m p d i t y , o r s t J ~ . . , I i c e n s e a n y a n d a l l I n t e l l e c t u a l P r o p e r t y
o t h e r w i s e o w n e t f b y C o n s u l t a n t w h i ' c f r i s t h e b a s i s o r f o u n d a t i o n f o r a n y d e r i v a t i v e ,
c o l l e c t i v e , i n s u r r e c t i & h a l ; o r s u p p l e m e n t a l w o r k c r e a t e d u n d e r t h i s A g r e e m e n t .
3 . 1 8 . 3 C o n f i d e n t i a l i t y . A l l i d e a s , m e m o r a n d a , s p e c i f i c a t i o n s , p l a n s ,
p r o c e d u r e s , d r a w i n g s , d e s c r i p t i o n s , c o m p u t e r p r o g r a m d a t a , i n p u t r e c o r d d a t a , w r i t t e n
i n f o r m a t i o n , a n d , o t h e r D o c u m e n t s a n d D a t a e i t h e r c r e a t e d b y o r p r o v i d e d t o C o n s u l t a n t
i n c o n n e c t i o n w i t h t h e p e r f o r m a n c e o f t h i s A g r e e m e n t s h a l l b e h e l d c o n f i d e n t i a l b y
C o n s u l t a n t . S u c h m a t e r i a i ; S s h a l l n o t , w i t h o u t t h e p r i o r w r i t t e n c o n s e n t o f C o m m i s s i o n ,
b e u s e d b y C o n s u l t a n t f o r a n y p u r p o s e s o t h e r t h a n t h e p e r f o r m a n c e o f t h e S e r v i c e s .
N o r s h a l l s u c h m a t e r i a l s b e d i s c l o s e d t o a n y p e r s o n o r e n t i t y n o t c o n n e c t e d w i t h t h e
p e r f o r m a n c e o f t h e S e r v i c e s o r t h e P r o j e c t . N o t h i n g f u r n i s h e d t o C o n s u l t a n t w h i c h i s
o t h e r w i s e k n o w n t o C o n s u l t a n t o r i s g e n e r a l l y k n o w n , o r h a s b e c o m e k n o w n , t o t h e
r e l a t e d i n d u s t r y s h a l l b e d e e m e d c o n f i d e n t i a l . C o n s u l t a n t s h a l l n o t u s e C o m m i s s i o n ' s
n a m e o r i n s i g n i a , p h o t o g r a p h s o f t h e P r o j e c t , o r a n y p u b l i c i t y p e r t a i n i n g t o t h e S e r v i c e s
o r t h e P r o j e c t i n a n y m a g a z i n e , t r a d e p a p e r , n e w s p a p e r , t e l e v i s i o n o r r a d i o p r o d u c t i o n
o r o t h e r s i m i l a r m e d i u m w i t h o u t t h e p r i o r w r i t t e n c o n s e n t o f C o m m i s s i o n .
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3 5 2
Should Consultant receive a subpoena or court order related to this
Agreement, the Services or the Project, Consultant shall immediately provide written •
notice of the subpoena or court order to the Commission in order to allow the
Commission to pursue legal remedies designed to limit any confidential information
required to be disclosed or to assure the confidential treatment of the information
following disclosure. Consultant shall not respond to any such subpoena or court order
until notice to the Commission is provided as required herein, and shall cooperate with
the Commission in responding to the subpoena or court order.
3.19 Cooperation; Further Acts. The Parties shall fully cooperate with
one another, and shall take any additional acts or ~igm:,any additional documents as
may be necessary, appropriate or convenient to attain the purposes of this Agreement.
3.20 Attorney's Fees. If either party comm~nces an action against the
other party, either legal, administrative or ot~er'wise, arising q~tof or in connection with
this Agreement, the prevailing party in ,sti~h litigation shalr'~$ entitled to have and
recover from the losing party reasonable attQ~Qey's fees and costs,ofsuch actions.
i,., .;y;~:_(>::·
3.21 Indemnification. Consultant sh~~ indemnity<::and hold the
Commission, its directors, offici~Js; officers, agents, consultants, employees and
volunteers free and harmless tr&~ a~~;~:c:md all clafrm,~· demands, causes of action,
costs, expenses, liabilities, losses, damages or injuries; im law or in equity, to property or
persons, including wrongf!JI death, in, any mahner arising qut of or incident to alleged
negligent acts, omission~ or:willful misconduct of the Consultant, its officials, officers, •
employees, agent~;, consultan~$,,, and cdritractors arising eut of or in connection with the
performance of the S~rvices, the Project orthis Agreement, including without limitation,
the payment of all conS'~quent~~·Jdamages, attorneys fees and other related costs and
expenses,,t:pqn~:~ltant ShaJI,<;Jetend,<'at Consultant's own cost, expense and risk, any
and all ~odh,,:afor~~aid suits.:'gdions or other legal proceedings of every kind that may
be brought or institutect:;agairisttbe Commission, its directors, officials, officers, agents,
consultants, employees:~~nd voiUrlteers. Consultant shall pay and satisfy any judgment,
award or de~ree that may be renderecl,, against the Commission or its directors, officials,
officers, agents, consultants, employees and volunteers, in any such suit, action or
other legal proce~(:Jing. Con~l;Jitant shall reimburse the Commission and its directors,
officials, officers, ~gents, consultants, employees and volunteers, for any and all legal
expenses and costs?Jfhclud:jng reasonable attorney's fees, incurred by each of them in
connection therewith or ill) enforcing the indemnity herein provided. Consultant's
obligation to indemnity sha'll not be restricted to insurance proceeds, if any, received by
the Commission or its directors, officials, officers, agents, consultants, employees and
volunteers. Notwithstanding the foregoing, to the extent Consultant's Services are
subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent
required by Civil Code Section 2782.8, to claims that arise out of, pertain to, or relate to
the negligence, recklessness, or willful misconduct of the Consultant. This Section 3.21
shall survive any expiration or termination of this Agreement.
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3 . 2 2 E n t i r e A g r e e m e n t . T h i s A g r e e m e n t c o n t a i n s t h e e n t i r e A g r e e m e n t
o f t h e p a r t i e s w i t h r e s p e c t t o t h e s u b j e c t m a t t e r h e r e o f , a n d s u p e r s e d e s a l l p r i o r
n e g o t i a t i o n s , u n d e r s t a n d i n g s o r a g r e e m e n t s . T h i s A g r e e m e n t m a y o n l y b e m o d i f i e d b y
a w r i t i n g s i g n e d b y b o t h p a r t i e s .
3 . 2 3 G o v e r n i n g L a w . T h i s A g r e e m e n t s h a l l b e g o v e r n e d b y t h e l a w s o f
t h e S t a t e o f C a l i f o r n i a . V e n u e s h a l l b e i n R i v e r s i d e C o u n t y .
3 . 2 4 T i m e o f E s s e n c e . T i m e i s o f t h e e s s e n c e f o r e a c h a n d e v e r y
p r o v i s i o n o f t h i s A g r e e m e n t .
3 . 2 5 C o m m i s s i o n ' s R i g h t t o E m p t 0 y � � O t h e r C o n s u l t a n t s . 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 e m p l o y o t h e r : , ~ c o r f s u l t a n t s i n c o n n e c t i o n w i t h t h i s
P r o j e c t . , ~ : , .
3 . 2 6 S u c c e s s o r s a n d A s s i g n s ~ i " T h i s A g r e e m e n t s n a i l b e b i n d i n g o n t h e
s u c c e s s o r s a n d a s s i g n s o f t h e p a r t i e s , a n d ; ~ h a l l n o t b e a s s i g n e i J ; : ~ y C o n s u l t a n t w i t h o u t
t h e p r i o r w r i t t e n c o n s e n t o f C o m m i s s i o n . �
3 . 2 7 P r o h i b i t e d l r t t e r ~ s t s .
3 . 2 7 . 1 S o l i c i t a t i $ n . : O o n s i , J i t a n t m a i r i t a i n s a n d w a r r a n t s t h a t i t h a s
n o t e m p l o y e d n o r r e t a i n e d a n y c o r r l p a n y o r p e r ~ o n , o t h e r t h a n a b o n a f i d e e m p l o y e e
w o r k i n g s o l e l y f o r C o n s u l t a n t , t o s o l i c i t o r s e c v ! e : t J l ' i ~ . , A g r e e m e n t . F u r t h e r , C o n s u l t a n t
w a r r a n t s t h a t i t h a s m o f p a i d h o r � h a s i t a g r � e d t q ' : J 5 a y ' � n y : . c o m p a n y o r p e r s o n , o t h e r t h a n
a b o n a f i d e e m p l o y e e w o r k i n g s o l e l y f o r ~ o o ~ L i t a n t , a n y f e e , c o m m i s s i o n , p e r c e n t a g e ,
b r o k e r a g e f e e , g i f t o r o t h e r c o n s i d e r a t i o n c o i J ~ ~ ! J g e n t u p o n o r r e s u l t i n g f r o m t h e a w a r d o r
m a k i n g o f t h i s A g r e e m e n t . F ( ; ) r 1 b r e a c h o r v i ~ J a t i o n o f t h i s w a r r a n t y , 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 t o r e s c i n d t h i s A g r e e m e n t w i t h o u t l i a b i l i t y .
3 . 2 7 : 2 C o n f l i c t o f I n t e r e s t . F o r t h e t e r m o f t h i s A g r e e m e n t , n o
m e m b e r , o f f i c e r o r e m p l o y e e . o f C o m r ; o i s s i o n , d u r i n g t h e t e r m o f h i s o r h e r s e r v i c e w i t h
C o m m i s s i o n , s h a l l h a v e a n y d i r e c t i n t e r e s t i n t h i s A g r e e m e n t , o r o b t a i n a n y p r e s e n t o r
a n t i c i p a t e d m a t e r i a l b e n e f i t a r i s i n g t h e r e f r o m .
3 . 2 8 E q u a l . O p p o r t u n i t y E m p l o y m e n t . C o n s u l t a n t r e p r e s e n t s t h a t i t i s a n
e q u a l o p p o r t u n i t y e m p l o y e r a n d i t s h a l l n o t d i s c r i m i n a t e a g a i n s t a n y e m p l o y e e o r
a p p l i c a n t f o r e m p l o y m e n t b e c a u s e o f r a c e , r e l i g i o n , c o l o r , n a t i o n a l o r i g i n , a n c e s t r y , s e x
o r a g e . S u c h n o n - d i s c r i m i n a t i o n s h a l l i n c l u d e , b u t n o t b e l i m i t e d t o , a l l a c t i v i t i e s r e l a t e d
t o i n i t i a l e m p l o y m e n t , u p g r a d i n g , d e m o t i o n , t r a n s f e r , r e c r u i t m e n t o r r e c r u i t m e n t
a d v e r t i s i n g , l a y o f f o r t e r m i n a t i o n . C o n s u l t a n t s h a l l a l s o c o m p l y w i t h a l l r e l e v a n t p r o v i -
s i o n s o f C o m m i s s i o n ' s D i s a d v a n t a g e d B u s i n e s s E n t e r p r i s e p r o g r a m , A f f i r m a t i v e A c t i o n
P l a n o r o t h e r r e l a t e d C o m m i s s i o n p r o g r a m s o r g u i d e l i n e s c u r r e n t l y i n e f f e c t o r
h e r e i n a f t e r e n a c t e d .
1 1
3 5 4
3.29 Subcontracting. Consultant shall not subcontract any portion of the
work or Services required by this Agreement, except as expressly stated herein, without •
prior written approval of the Commission. Subcontracts, if any, shall contain a provision
making them subject to all provisions stipulated in this Agreement.
3. 30 Reserved.
3.31 Reserved.
3.32 No Waiver. Failure of Commission to insist on any one occasion
upon strict compliance with any of the terms, covenants or conditions hereof shall not
be deemed a waiver of such term, covenant or,c:?~t'lf:}ition, nor shall any waiver or
relinquishment of any rights or powers hereunder'/afany one time or more times be
deemed a waiver or relinquishment of such other right ·~:r;;power at any other time or
times. · ,~/,;;' ,, ~,. '
.-<,',.<, < \,;;,·~.-~/>_. , ·.;~-;{,{~~? · Ji:D( ·--
3.33 Eight-Hour Law. Pursl\lant to the provisionso.f1.·t!Je California Labor
Code, eight hours of labor shall constitute a legal day' ,.ork, and ttl .. "' Orne of service of
any worker employed on the work. shall be lim!" ,, ·~stricted to ·.. .~"nt hours during
any one calendar day, and forty· rs .in any one . ar week, exceptwhen payment
for overtime is made at not les v: h~ir1 .. one and one:.half the basic rate for all hours
worked in excess of eight hours pef:·\~9~Y C:§~ght-Hou ·• · "}, unless Consultant or the
Services are not subjectJo the EightZiJ11our Law ..... Q.pnsu . r,shall forfeit to Commission
as a penalty, $50.00fd~\·~achworkeremployed:lnrtm~ex~~lition of this Agreement by •
him, or by any sub.,.cdhsulta~t. under him., .for each··~~~~!ldar day during which such
workman is required w permitt~d to worR\:;;,[JOre than eight hours in any calendar day
and forty hours in any .. one q~~\!md,ar wee~ without such compensation for overtime
violation oLJhe •.• provisions of:•;the;t5;~·al.ifornia .Labor Code, unless Consultant or the
Services·~a re inots'llit;>ject to the Eight ~HG»Jr Law. .
3.34 Sul:>poenas · or Court Orders. Should Consultant receive a
subpoena or court order related .:lb this Agreement, the Services or the Project,
Consultant shaltimmediately:f.}rovide written notice of the subpoena or court order to the
Commission. C'Q;nsultant sha{lnot respond to any such subpoena or court order until
notice to the Commission is provided as required herein, and shall cooperate with the
Commission in responding to the subpoena or court order.
3.35 Sun/ivai. All rights and obligations hereunder that by their nature
are to continue after any expiration or termination of this Agreement, including, but not
limited to, the indemnification and confidentiality obligations, and the obligations related
to receipt of subpoenas or court orders, shall survive any such expiration or termination.
3.36 No Third Party Beneficiaries. There are no intended third party
beneficiaries of any right or obligation assumed by the Parties.
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3 . 3 7 L a b o r C e r t i f i c a t i o n . B y i t s s i g n a t u r e h e r e u n d e r , C o n s u l t a n t c e r t i f i e s
t h a t i t i s a w a r e o f t h e p r o v i s i o n s o f S e c t i o n 3 7 0 0 o f t h e C a l i f o r n i a L a b o r C o d e w h i c h
r e q u i r e e v e r y e m p l o y e r t o b e i n s u r e d a g a i n s t l i a b i l i t y f o r W o r k e r s ' C o m p e n s a t i o n o r t o
u n d e r t a k e s e l f - i n s u r a n c 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 a t C o d e , a n d a g r e e s t o
c o m p l y w i t h s u c h p r o v i s i o n s b e f o r e c o m m e n c i n g t h e p e r f o r m a n c e o f t h e S e r v i c e s .
3 . 3 8 C o u n t e r p a r t s . T h i s A g r e e m e n t m a y b e s i g n e d i n 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 c o n s t i t u t e a n o r i g i n a l .
3 . 3 9 I n c o r p o r a t i o n o f R e c i t a l s . T h e r e c i t a l s s e t f o r t h a b o v e a r e t r u e a n d
c o r r e c t a n d a r e i n c o r p o r a t e d i n t o t h i s A g r e e m e n t a s t h o u g h f u l l y s e t f o r t h h e r e i n .
3 . 4 0 I n v a l i d i t y ; S e v e r a b i l i t y . I f a n y , ~ , o r t i o n o f t h i s A g r e e m e n t i s d e c l a r e d
i n v a l i d , i l l e g a l , o r o t h e r w i s e u n e n f o r c e a b l e b y c = f - c o u r t b f c o m p e t e n t j u r i s d i c t i o n , t h e
r e m a i n i n g p r o v i s i o n s s h a l l c o n t i n u e i n f u l l f o r , c e ; ; i : l n d e f f e c t .
3 . 4 1 C o n f l i c t i n g P r o v i s i o n s ; i c : l q t h e e v e n t t h a t p r o v l s i o p s o f a n y a t t a c h e d
e x h i b i t s c o n f l i c t i n a n y w a y w i t h t h e p r o v i s i o r i $ \ : � s e t f o r t h ) n t h i s A g r e e ~ e n t , t h e l a n g u a g e ,
t e r m s a n d c o n d i t i o n s c o n t a i n e d . i n t h i s A g t e e r n e n t . s h a l l c o n t r o l - " t t l ~ a c t i o n s a n d
o b l i g a t i o n s o f t h e P a r t i e s a n d t h ~ l ; i n t e 1 ; p r e t a t i o n o f s t H : e P a r t i e s ' u n d e r s t a n d i n g c o n c e r n i n g
t h e p e r f o r m a n c e o f t h e S e r v i c e s . � - - � - - -
3 . 4 2 H e a d i n g s . A r t i c l e a n d S e c t i o n H e a d i n g s , p a r a g r a p h c a p t i o n s o r
m a r g i n a l h e a d i n g s c o n t a - l r y e d i n t h i s A g r e e m e n t a r e f o r c o n v e n i e n c e o n l y a n d s h a l l h a v e
n o e f f e c t i n t h e c o n s - t r u c t i o n o r i n t e r p r e t a t i o n o f a n y p r o v i ~ i o n h e r e i n .
- ; . , ' ,
3 . 4 3 A s s i g n m e n t : o r T r a n s f e r . C o n s u l t a n t s h a l l n o t a s s i g n , h y p o t h e c a t e ,
o r t r a n s f e r , . e i t h e r d i r e c t f y " b r b Y - o p e r a t i o n o f l a w , t h i s A g r e e m e n t o r a n y i n t e r e s t h e r e i n ,
w i t h o u t t h e . p r i b r w r i t t e n c o n s e n t o f t h e C o m m i s ~ 1 o n . A n y a t t e m p t t o d o s o s h a l l b e n u l l
a n d v o i d , a n d a n y a s s i g n e e s , . h y p o t h e c a t e s o r t r a n s f e r e e s s h a l l a c q u i r e n o r i g h t o r
i n t e r e s t b y r e a s o n o f s u c h < a t t e m p t e d a s s i g n m e n t , h y p o t h e c a t i o n o r t r a n s f e r .
. . 3 : 4 4 A u t h o r i t y t o E n t e r A g r e e m e n t . C o n s u l t a n t h a s a l l r e q u i s i t e p o w e r
a n d a u t h o r i t y � t o _ - c o n d u c t i t s b u s i n e s s a n d 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 t h e
A g r e e m e n t . E a c h P a r t y w a r r a n t s t h a t t h e i n d i v i d u a l s w h o h a v e s i g n e d t h i s A g r e e m e n t
h a v e t h e l e g a l p o w e r , r i g h t , a n d a u t h o r i t y t o m a k e t h i s A g r e e m e n t a n d b i n d e a c h
r e s p e c t i v e P a r t y .
[ S I G N A T U R E S O N F O L L O W I N G P A G E ]
1 3
3 5 6
SIGNATURE PAGE
TO
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
AG-REEMENT FOR INVESTMENT MANAGEMENT SERVICES
WITH [__CONSULTANT__]
IN WITNESS WHEREOF, this Agreement was executed on the date first written
above.
RIVERSIDE COUNTY
TRANSPORTATION COMMISSION
CONSULTANT
[INSERT NAME OF CONSULTANT]
By: __________ _
Karen S. Spiegel, Chair
Approved as to Form:
By:
Best 13't9st & Krieger LLP
General· Counsel
14
357
By: _________ _
Signature
Title
Attest:
By: ________ _
Its: Secretary
•
•
•
"
"
"
E x h i b i t " A "
S c o p e o f S e r v i c e s
T h e C o m m i s s i o n r e q u i r e s t h e s e r v i c e s o f a q u a l i f i e d C o n s u l t a n t t o p r o v i d e i n v e s t m e n t
m a n a g e m e n t s e r v i c e s i n c o n n e c t i o n w i t h t h e C o m m i s s i o n ' s s a l e s t a x a n d t o l l r e v e n u e b a s e d
f i n a n c i n g s f o r t h e P r o j e c t d e s c r i b e d i n S e c t i o n 1 . 1 .
T h e s e r v i c e s r e q u e s t e d m a y i n c l u d e t h e f o l l o w i n g :
" D e v e l o p m e n t a n d / o r r e v i e w o f t h e i n v e s t m e n t : : J ) ' d t i c y a n d i n t e r n a l i n v e s t m e n t
p r o c e d u r e s : T h e O f f e r o r m u s t i n i t i a l l y a n d a n n u a l l y a s s i s t i n t h e r e v i e w o f t h e
i n v e s t m e n t p o l i c y , w h i c h i s i n c l u d e d a s p a r t o f t h i s S t a t e m e n t o f W o r k . T h e O f f e r o r m u s t
a l s o p r o v i d e a d v i c e r e g a r d i n g a p p r o p r i a t e i n t ~ r n a l i n v e s t m e n t p r o c e d u r e s .
" D i s c r e t i o n a r y o r N o n d i s c r e t i o n a r y P o r t f d l i o m a n a g e m e n t : T h e O f f e r o r m u s t p r o v i d e
f u l l - t i m e , d i s c r e t i o n a r y m a n a g e m e n t : . - g , ( ~ t h e b o n d i n v e s t m e n ( ! p o r t f o l i o a n d e f f e c t i v e l y
i n v e s t i t s f u n d s p u r s u a n t t o t h e a p p r o v ~ j o v e s t m e n t p o l i c y a n d c a s t ) f l o w s c h e d u l e . T h e
f i r m w i l l b e a v a i l a b l e f o r r e g u l a r a n d r o u t i r t ~ c o m m u n i c a t j o n w i t h s t a f f a s o f t e n a s d e e m e d
n e c e s s a r y . T h e g o a l i s t o m a x i m i z e t h e r e t u r n , : ' Q . n t h ~ . p c # t f o l i o w h i l e p r e . ~ , e r v i n g s a f e t y a n d
l i q u i d i t y . t ) ' : . . . ' < ; : 1 ; > � � � � � .
" R e p o r t i n g : T h e O f f e r o r m : u . : l O V i d e m o n t h l y � r e p o r t s o f h o l d i n g s , t r a n s a c t i o n s ,
p e r f o r m a n c e a n d o t h e r i n f o r m a t l p r i f d r ' ( ~ h e p o r t f o l i o . T h e O f f e r o r m u s t p r o v i d e o n l i n e
a c c e s s t o t h e p o r t f o l i o . T h e d f f i ; l r o r m u s t p r o v i d e Q , u a r t e r l y r e p o r t s o f p e r f o r m a n c e ,
m a r k e t c o n d i t i o n s , , , ~ n d . t o v e s t m e n t s t r a t e g y . . . � . . . . . � . �
" C r e d i t a n a l y s i s i c > f i r f \ r e s t m e n t i n s t r t [ i ; p 1 e n t s i n t h e . p o r t f o l i o : T h e O f f e r o r m u s t p r o v i d e
o n g o i n g c r e d i t a M ~ I y s i s o f i r i v e s t m e n t ' i l i t s t r u m e n t s , r e p o r t o n c r e d i t r a t i n g s i n t h e p o r t f o l i o
i n t h e m o n t h l y r E l p o r t , a n d i l l l f h e d i a t e l y n o t i f y 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 a n y e v e n t t h a t
s i g n i f i c a n t l y i m p a c t s c r e d i t w o r t ! } i n e s s . t , ; ; t ' ~
" P e r i p d i f ; : m e ~ t i n g s w i t b ] > f f i d ~ l s : . 1 J h e O f f e r o r m u s t b e a v a i l a b l e t o m e e t w i t h t h e C h i e f
F i n a n c i a l . O f f i ~ e r a n d C o f i n r r ! i s s i o n : a ~ � r e q u e s t e o .
" S t a f f t r a i n i n g i : m d , � . e d u c a t i o n : T h e O f f e r t ) f m u s t b e a v a i l a b l e t o s t a f f t o a n s w e r q u e s t i o n s
a n d t o p r o v i d e g e n e r � c 1 J g u i d a n c e a n d e d u c a t i o n s i n r e l a t e d a r e a s .
" C u s t o d i a l a n d s a f e k e e p i n g r e v i e w .
" B r o k e r / c : t e a l e r d u e d i l i g e n c e a n d r e l a t i o n s .
" A s s i s t a n c e i n t h e d e v ~ l o p m e n t o f p r o j e c t i o n s o f c a s h f l o w f r o m t h e i n v e s t m e n t
p o r t f o l i o .
O t h e r i n v e s t m e n t m a n a g e m e n t s e r v i c e s m a y b e r e q u e s t e d b y t h e C o m m i s s i o n r e l a t e d t o t h e
i n v e s t m e n t o f o t h e r C o m m i s s i o n c a s h a n d i n v e s t m e n t s , w h i c h h a d a b a l a n c e o f a p p r o x i m a t e l y
$ 4 3 9 m i l l i o n a s o f D e c e m b e r 3 1 , 2 0 1 2 . I n o r d e r t o d e t e r m i n e t h e n a t u r e a n d e x t e n t o f s u c h
s e r v i c e s , t h e C o m m i s s i o n i s i n t e r e s t e d i n o b t a i n i n g i n f o r m a t i o n a s t o i n v e s t m e n t a d v i s o r y a n d / o r
i n v e s t m e n t m a n a g e m e n t s e r v i c e s r e g a r d i n g t h e i n v e s t m e n t o f t h o s e f u n d s .
3 5 8
Exhibit "B" •
Compensation
L._INSERT __]
•
•
359
"
"
"
A T I A C H M E N T 2
A g r e e m e n t N o . 1 3 - 1 9 - 1 3 5 - 0 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
A G R E E M E N T F O R I N V E S T M E N T M A N A G E M E N T S E R V I C E S
W I T H P A Y D E N & R Y G E L I N V E S T M E N T M A N A G E M E N T
1 . P A R T I E S A N D D A T E .
T h i s A g r e e m e n t i s m a d e a n d e n t e r e d i n t o t h i s _ d a y o f , 2 0 1 3 ,
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 ( " t h e
C o m m i s s i o n " ) a n d P A Y D E N & R Y G E L I N V E S T M E N T M A N A G E M E N T ( " C o n s u l t a n t " ) .
2 . R E C I T A L S .
2 . 1 C o n s u l t a n t d e s i r e s t o p e r f o r m a n d 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
p r o v i s i o n o f c e r t a i n p r o f e s s i o n a l c o n s u l t i n g s e r v i c e s r e q u i r e d b y C o m m i s s i o n o n t h e
t e r m s a n d c o n d i t i o n s s e t f o r t h i n t h i s A g r e e m e n t . C o n s u l t a n t r e p r e s e n t s t h a t i t i s a
p r o f e s s i o n a l c o n s u l t a n t , e x p e r i e n c e d i n p r o v i d i n g i n v e s t m e n t m a n a g e m e n t s e r v i c e s ,
a n d i s f a m i l i a r w i t h t h e p l a n s o f C o m m i s s i o n .
2 . 2 C o m m i s s i o n d e s i r e s t o e n g a g e C o n s u l t a n t t o r e n d e r c e r t a i n
i n v e s t m e n t m a n a g e m e n t s e r v i c e s r e l a t e d t o t h e s a l e s t a x a n d t o l l r e v e n u e b o n d s
( B o n d s ) a n d 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 ' s T r a n s p o r t a t i o n I n f r a s t r u c t u r e F i n a n c e
a n d I n n o v a t i o n A c t l o a n ( L o a n ) f i n a n c i n g s i n c o n n e c t i o n w i t h 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 ( " P r o j e c t " ) a s s e t f o r t h h e r e i n . A d d i t i o n a l l y , t h e C o m m i s s i o n m a y
d e s i r e t o e n g a g e C o n s u l t a n t t o r e n d e r c e r t a i n i n v e s t m e n t m a n a g e m e n t s e r v i c e s r e l a t e d
t o o t h e r C o m m i s s i o n c a s h a n d i n v e s t m e n t s ( " O p t i o n a l P r o j e c t " ) a s s e t f o r t h h e r e i n ,
c o l l e c t i v e l y t h e " P r o j e c t s " .
3 . T E R M S .
3 . 1 G e n e r a l S c o p e o f S e r v i c e s . C o n s u l t a n t p r o m i s e s a n d a g r e e s t o
f u r n i s h t o C o m m i s s i o n a l l l a b o r m a t e r i a l s , t o o l s , e q u i p m e n t , s e r v i c e s , a n d i n c i d e n t a l a n d
c u s t o m a r y w o r k n e c e s s a r y t o f u l l y a n d a d e q u a t e l y p r o v i q e p r o f e s s i o n a l c o n s u l t i n g
s e r v i c e s a n d a d v i c e o n v a r i o u s i s s u e s a f f e c t i n g t h e d e c i s i o n s o f C o m m i s s i o n r e g a r d i n g
t h e P r o j e c t s a n d o n o t h e r p r o g r a m s a n d m a t t e r s a f f e c t i n g C o m m i s s i o n , h e r e i n a f t e r
r e f e r r e d t o a s " S e r v i c e s " . T h e S e r v i c e s a r e m o r e p a r t i c u l a r l y d e s c r i b e d i n E x h i b i t " A "
a t t a c h e d h e r e t o a n d i n c o r p o r a t e d h e r e i n b y r e f e r e n c e . A l l S e r v i c e s s h a l l b e s u b j e c t t o ,
a n d p e r f o r m e d i n a c c o r d a n c e w i t h , t h i s A g r e e m e n t , t h e e x h i b i t s a t t a c h e d h e r e t o a n d
i n c o r p o r a t e d h e r e i n b y r e f e r e n c e , a n d a l l a p p l i c a b l e l o c a l , s t a t e , a n d f e d e r a l J a w s , r u l e s
a n d r e g u l a t i o n s .
3 6 0
3.2 Term. The term of this Agreement shall commence upon the
issuance of the Bonds and closing of the Loan for an initial five year period, unless •
earlier terminated as provided herein. The Commission shall have the option, in its sole
discretion, to extend the term of the Agreement for two additional one-year periods.
Consultant shall complete the Services within the term of this Agreement and shall meet
any other established schedules and deadlines.
3.3 Schedule of Services. Consultant shall perform the Services
expeditiously, within the term of this Agreement, and in accordance with the Scope of
Services set forth in Exhibit "A" attached hereto and inc0rporated herein by reference.
Consultant represents that it has the professional an.d technical personnel required to
perform the Services in conformance with such . contlitions. In order to facilitate
Consultant's conformance with the Schedule, . the Commission shall respond to
Consultant's submittals in a timely manner,. ··;;l::Jpon request of the Commission,
Consultant shall provide a more detailed SGlledule of anticipated performance to meet
the Schedule of Services.
3.4 Independent Contractor; C.ontrol .arnd Paym~~E.'of Subordinates.
The Services shall be performed .. ,by Consultanfundel";%{{§' supervision'J,0·1Consultant will
determine the means, method · . etails of peff;f~fming the Services subject to the
requirements of this Agreement. · b'~mission ret~if;)s Consultant on an independent
contractor basis and Consultant is not an employee ofq::>~rnmission. Consultant retains
the right to perform similar or different services for otl:'lers during the term of this
Agreement. Any additional p~rsonnel performing the,S~rvlceP' under this Agreement on •
behalf of Consultant shall notbe empl6yees;.ofComn;l1~~ion and shall at all times be
. under Consultant's' e~clusive 6Jir.ection and control. c1>11sultant shall pay all wages,
salaries, and other amounts du ·!Jch personpel in connection with their performance of
Services ynder this Agreeme ... . :as require~,;by law. Consultant shall be responsible
for all reports ancF'obligation,§tFtespectin~;}'i}~ycn' additional personnel, including, but not
limited to: social security taxes, income t~X:;;~ithholding, unemployment insurance, and
workers' compensation if!l~:urance.
3.5 Conformance to· Applicable Requirements. All work prepared by
Consultant shall be subject to;the approval of Commission.
3.6 Substittftion of Key Personnel. Consultant has represented to
Commission that certain ·k~y'personnel will perform and coordinate the Services under
this Agreement. Should one or more of such personnel become unavailable,
Consultant may substitute other personnel of at least equal competence and experience
upon written approval of Commission. In the event that Commission and Consultant
cannot agree as to the substitution of key personnel, Commission shall be entitled to
terminate this Agreement for cause, pursuant to provisions of Section 3.16 of this
Agreement. The key personnel for performance of this Agreement are as follows:
2
361
•
"
"
"
3 . 7 C o m m i s s i o n ' s R e p r e s e n t a t i v e . C o m m i s s i o n h e r e b y d e s i g n a t e s
l _ _ I N S E R T N A M E O R T I T L E _ _ j , o r h i s o r h e r d e s i g n e e , t o a c t a s i t s r e p r e s e n t a t i v e
f o r t h e p e r f o r m a n c e o f t h i s A g r e e m e n t ( " C o m m i s s i o n ' s R e p r e s e n t a t i v e " ) . C o m m i s s i o n ' s
r e p r e s e n t a t i v e s h a l l h a v e t h e p o w e r t o a c t o n b e h a l f o f C o m m i s s i o n f o r a l l p u r p o s e s
u n d e r t h i s A g r e e m e n t . C o n s u l t a n t s h a l l n o t a c c e p t d i r e c t i o n f r o m a n y p e r s o n o t h e r t h a n
C o m m i s s i o n ' s R e p r e s e n t a t i v e o r h i s o r h e r d e s i g n e e .
3 . 8 C o n s u l t a n t ' s R e p r e s e n t a t i v e . C o n s u l t a n t h e r e b y d e s i g n a t e s
l _ _ I N S E R T N A M E O R T I T L E _ _ j , o r h i s o r h e r d e s i g n e e , t o a c t a s i t s r e p r e s e n t a t i v e
f o r t h e p e r f o r m a n c e o f t h i s A g r e e m e n t ( " C o n s u l t a n t ' s R e p r e s e n t a t i v e " ) . C o n s u l t a n t ' s
R e p r e s e n t a t i v e s h a l l h a v e f u l l a u t h o r i t y t o r e p r e s e n t a g c t a c t o n b e h a l f o f t h e C o n s u l t a n t
f o r a l l p u r p o s e s u n d e r t h i s A g r e e m e n t . T h e C o n s u l t a n t ' s R e p r e s e n t a t i v e s h a l l s u p e r v i s e
a n d d i r e c t t h e S e r v i c e s , u s i n g h i s o r h e r b e s t s k i U � a n d a t t e n t i o n , a n d s h a l l b e
r e s p o n s i b l e f o r a l l m e a n s , m e t h o d s , t e c h n i q u e s , s e q u e n c e s ( ; l n d p r o c e d u r e s a n d f o r t h e
s a t i s f a c t o r y c o o r d i n a t i o n o f a l l p o r t i o n s o f t h e S e r v i c e s u n d e r ' t a i s A g r e e m e n t .
3 . 9 C o o r d i n a t i o n o f S e r v r c $ s . C o n s u l t a n t a g r e e s : t o w o r k c l o s e l y w i t h
C o m m i s s i o n s t a f f i n t h e p e r f o r m a n c e o f S e r V i c e s a n d s @ a l l b e a v a i l a l ~ l e t o C o m m i s s i o n ' s
s t a f f , c o n s u l t a n t s a n d o t h e r s t a f f a t a l l r e a s o n a b l e t i m e s : . '
~ , : . > j , ; < > : , , ~ � , ~ ' - z ~ ~ >
, _ : A - . t x ~ t � : , ~ . ; - . . - : , : / - � -
3 . 1 0 S t a n d a r d o f C a r e ; L i c e n s e s . C o n s u l t a n t s h a l l p e r f o r m t h e S e r v i c e s
u n d e r t h i s A g r e e m e n t i n a s k i l l f u l a r l ; ( : J c o m ) J e t e n t m a n n e r , c o n s i s t e n t w i t h t h e s t a n d a r d
g e n e r a l l y r e c o g n i z e d a s b e i n g e m p l o ~ e d b Y p r o f e s s i o n a l s I n t h e s a m e d i s c i p l i n e i n t h e
S t a t e o f C a l i f o r n i a . . Q o n s l i l l ~ a n t r e p r e ~ e n t s a A f l , i . f � m a i n t a i n s t h a t i t i s s k i l l e d i n t h e
p r o f e s s i o n a l c a l l i n g n e c e s s a t W , ~ t p p e r f o r r i l . . t ~ ; r e ; � � i S e r v i " C ~ S / r . C o n s u l t a n t w a r r a n t s t h a t a l l
e m p l o y e e s a n d s u b c o n t r a c t o r s ; ~ ~ b a l l h a v e s i i l f f f c i e n t s k i l l a n d e x p e r i e n c e t o p e r f o r m t h e
S e r v i c e s a s s i g n e d t o t ~ m . F ~ ~ a l l y , C o n s i l l l a n t r e p r e s e n t s t h a t i t , i t s e m p l o y e e s a n d
s u b c o n t r a c t o r s h a v e a l f > l f c e n s ~ s , J } e f m i t s , q O . a l i f i c a t i o n s a n d a p p r o v a l s o f w h a t e v e r
n a t u r e t h a t a r e l e g a l l y r e q u i r e d t o p e r f o r m t h e S e r v i c e s a n d t h a t s u c h l i c e n s e s a n d
a p p r o v a l s s h a l l b e m a i n t a i n e d : ~ m r o u g h o u t t h e � t e r m o f t h i s A g r e e m e n t . C o n s u l t a n t s h a l l
p e r f o r m , � a t i t s o w n c o s t a n d e x p e n s e a n d w i t h o u t r e i m b u r s e m e n t f r o m C o m m i s s i o n , a n y
S e r v i c e s n e c e s s a r y t o c o n : e . c t e r r o r s o r o m i s s i o n s w h i c h a r e c a u s e d b y t h e C o n s u l t a n t ' s
f a i l u r e t o c o m p l y w i t h t h e s t a n d a r d o f c a r e p r o v i d e d f o r h e r e i n , a n d s h a l l b e f u l l y
r e s p o n s i b l e t o t h e C o m m i s s i o ( l l f o r a l l d a m a g e s a n d o t h e r l i a b i l i t i e s p r o v i d e d f o r i n t h e
i n d e m n i f i c a t i o n p r o v i s i o n s o f f h i s A g r e e m e n t a r i s i n g f r o m t h e C o n s u l t a n t ' s e r r o r s a n d
o m i s s i o n s .
3 . 1 1 L a w s a n d R e g u l a t i o n s . C o n s u l t a n t s h a l l k e e p i t s e l f f u l l y i n f o r m e d o f
a n d i n c o m p l i a n c e w i t h a l l l o c a l , s t a t e a n d f e d e r a l l a w s , r u l e s a n d r e g u l a t i o n s i n a n y
m a n n e r a f f e c t i n g t h e p e r f o r m a n c e o f t h e P r o j e c t o r t h e S e r v i c e s , i n c l u d i n g a l l C a i / O S H A
r e q u i r e m e n t s , a n d s h a l l g i v e a l l n o t i c e s r e q u i r e d b y l a w . C o n s u l t a n t s h a l l b e l i a b l e f o r a l l
v i o l a t i o n s o f s u c h l a w s a n d r e g u l a t i o n s i n c o n n e c t i o n w i t h S e r v i c e s . I f t h e C o n s u l t a n t
p e r f o r m s a n y w o r k k n o w i n g i t t o b e c o n t r a r y t o s u c h l a w s , r u l e s a n d r e g u l a t i o n s a n d
w i t h o u t g i v i n g w r i t t e n n o t i c e t o C o m m i s s i o n , C o n s u l t a n t s h a l l b e s o l e l y r e s p o n s i b l e f o r
a l l c o s t s a r i s i n g t h e r e f r o m . C o n s u l t a n t s h a l l d e f e n d , i n d e m n i f y a n d h o l d C o m m i s s i o n , i t s
o f f i c i a l s , d i r e c t o r s , o f f i c e r s , e m p l o y e e s a n d a g e n t s f r e e a n d h a r m l e s s , p u r s u a n t t o t h e
3
3 6 2
indemnification provisions of this Agreement, from any claim or liability arising out of any •
failure or alleged failure to comply with such laws, rules or regulations.
3.12 Insurance.
3.12.1 Time for Compliance. Consultant shall not commence work
under this Agreement until it has provided evidence satisfactory to the Commission that
it has secured all insurance required under this section. In addition, Consultant shall not
allow any subcontractor to commence work on any subcontract until it has secured all
insurance required under this section.
3.12.2 Minimum Requirements. /Consultant shall, at its expense,
. procure and maintain for the duration of the AgreemeJ1tjnsurance against claims for
injuries to persons or damages to property wqiqh may arise from or in connection with
the performance of the Agreement by the:<Consultant, its:;(lgents, representatives,
employees or subcontractors. Consultant $.hall also require aU of its subcontractors to
procure and maintain the same insuranc~' Jor the duration of tbe Agreement. Such
insurance shall meet at least the following minimum level~ of coverag~:;
.},• >;;•c
(A) i:ro,inimum ScodK.oLJhsurance. Cove;~~e shall be at
least as broad as the latest version 0~~1;t[le followin~; (1) General Liability: Insurance
Services Office Commercial General Liability coverage;('eccurrence form CG 0001 ); (2)
Automobile Liability: Insurance Service~ Office Business Auto Coverage form number
CA 0001, code 1 (any aLtto);.~nd (3) ~orkers' CompfJnsation and Employer's Liability •
Workers' Compen~ati2on insur~~e as requireci;'py the Ste1te of California and Employer's
Liability Insurance. Aqditionally, Consultant shall have errors and omissions insurance
[or investment advisor;professiqnalliability insurance and additional coverage through a
fidelity bollcJ a@d umbrella:iasur~nce.i·
(B) Minimum btmits of Insurance. Consultant shall
maintain:timits no less than: (1) General Liability: $2,000,000 per occurrence for bodily
injury, person:al injury and property damage. If Commercial General Liability Insurance
or other form· with general aggregate limit is used, either the general aggregate limit
shall apply separately to thisAgreementllocation or the general aggregate limit shall be
twice the required qccurrence limit; (2) Automobile Liability: $1,000,000 per accident for
bodily injury and property damage; (3) if Consultant has an employees, Workers'
Compensation and Employer's Liability: Workers' Compensation limits as required by
the Labor Code of the State of California; Employer's Practices Liability limits of
$1,000,000 per accident; (4) Errors and Omissions [or Investment Advisor Professional
Liability]: $10 million; and (5) Fidelity Bond and Umbrella: $1 million.
3.12.3 {Reserved}
3.12.41nsurance Endorsements. The insurance policies shall
contain the following provisions, or Consultant shall provide endorsements on forms
approved by the Commission to add the following provisions to the insurance policies: •
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( A ) G e n e r a l L i a b i l i t y . T h e g e n e r a l l i a b i l i t y p o l i c y s h a l l b e
e n d o r s e d t o s t a t e t h a t : ( 1 ) t h e C o m m i s s i o n , i t s d i r e c t o r s , o f f i c i a l s , o f f i c e r s , e m p l o y e e s
a n d a g e n t s s h a l l b e c o v e r e d a s a d d i t i o n a l i n s u r e d s w i t h r e s p e c t t o t h e S e r v i c e s o r
o p e r a t i o n s p e r f o r m e d b y o r o n b e h a l f o f t h e C o n s u l t a n t , i n c l u d i n g m a t e r i a l s , p a r t s o r
e q u i p m e n t f u r n i s h e d i n c o n n e c t i o n w i t h s u c h w o r k ; a n d ( 2 ) t h e i n s u r a n c e c o v e r a g e s h a l l
b e p r i m a r y i n s u r a n c e a s r e s p e c t s t h e C o m m i s s i o n , i t s d i r e c t o r s , o f f i c i a l s , o f f i c e r s ,
e m p l o y e e s a n d a g e n t s , o r i f e x c e s s , s h a l l s t a n d i n a n u n b r o k e n c h a i n o f c o v e r a g e
e x c e s s o f t h e C o n s u l t a n t ' s s c h e d u l e d u n d e r l y i n g c o v e r a g e . A n y i n s u r a n c e o r s e l f -
i n s u r a n c e m a i n t a i n e d b y t h e C o m m i s s i o n , i t s d i r e c t o r s , o ' ( f j c i a l s , o f f i c e r s , e m p l o y e e s a n d
a g e n t s s h a l l b e e x c e s s o f t h e C o n s u l t a n t ' s i n s u r a n c e a n d s h a l l n o t b e c a l l e d u p o n t o
c o n t r i b u t e w i t h i t i n a n y w a y . �
( B ) A u t o m o b i l e L i a b i l i t y . T h e a u t o m o b i l e l i a b i l i t y p o l i c y
s h a l l b e e n d o r s e d t o s t a t e t h a t : ( 1 ) t h e C q r n m i s s i o n , i t s d i t ~ c t o r s , o f f i c i a l s , o f f i c e r s ,
e m p l o y e e s a n d a g e n t s s h a l l b e c o v e r e < : f . � a s a d d i t i o n a l i n s u r e d ~ " . w i t h r e s p e c t t o t h e
o w n e r s h i p , o p e r a t i o n , m a i n t e n a n c e , u s e ~ ~ ' l o a d i n g o r u n l o a d i n g 1 0 ~ f a n y a u t o o w n e d ,
l e a s e d , h i r e d o r b o r r o w e d b y t h e C o n s u l t a n t . g r d o r w h i c h t h e C o n s U i t ~ n : 1 t i s r e s p o n s i b l e ;
a n d ( 2 ) t h e i n s u r a n c e c o v e r a g e s h c ; ~ J I b e p r i m a f Y i n s u r c i n c e a s r e s p e c t s " : � t h ~ C o m m i s s i o n ,
i t s d i r e c t o r s , o f f i c i a l s , o f f i c e r s , e t : ) i ' i p l o y e e s a n d a ~ e r i t s , o r i f e x c e s s , s H ' i i l l s t a n d i n a n
u n b r o k e n c h a i n o f c o v e r a g e e x c e ' s s ~ f t h ~ C o n s u l t a n t ' S t : S c h e d u l e d u n d e r l y i n g c o v e r a g e .
A n y i n s u r a n c e o r s e l f - i n s u r a n c e m a i n t a i N e d b y t h e c & ' t : J r i ' m i s s i o n , i t s d i r e c t o r s , o f f i c i a l s ,
o f f i c e r s , e m p l o y e e s a n d a , g e n t s s h a l l b e e x c e s s � � o f t h e C ~ s u l t a n t ' s i n s u r a n c e a n d s h a l l
n o t b e c a l l e d u p o n t o c 6 ~ ~ f l 1 i u t e w i t h i t i n a n y w a y . � , , : ~ < " ! h ;
~ t E V ? _ ; , > < ~ ~ x ~ ' ~ ;
� � � ~ , ( C ) . , ; W o r k e r s ' C o m p e n s a t i 6 ~ a n d E m p l o y e r s L i a b i l i t y
C o v e r a g e . T h e i n s u r ~ � � � s h a l l a g r e e t o w a i v e a l l r i g h t s o f s u b r o g a t i o n a g a i n s t t h e
C o m m i s s i o n ; ; i t s c : f i r e c t o r s , , , , , p f f : i e i c l \ l s , o f f i c e r s ' ; ' ' e m p l o y e e s a n d a g e n t s f o r l o s s e s p a i d
u n d e r t h e : t e r m s o f t h e 1 � \ ~ u r a n c e p o l i c y w h i c h a r i s e f r o m w o r k p e r f o r m e d b y t h e
C o n s u l t a n t . �
. ( D ) A l l C o v e r a g e s . E a c h i n s u r a n c e p o l i c y r e q u i r e d b y t h i s
A g r e e m e n t s f t a l l b e e n d o r s e d t o s t a t e t h a t : ( A ) c o v e r a g e s h a l l n o t b e s u s p e n d e d ,
v o i d e d o r c a n c e l e d e x c e p t a f t e r t h i r t y ( 3 0 ) d a y s p r i o r w r i t t e n n o t i c e b y c e r t i f i e d m a i l ,
r e t u r n r e c e i p t r e q u e s t e d , h a $ b e e n g i v e n t o t h e C o m m i s s i o n ; a n d , ( B ) a n y f a i l u r e t o
c o m p l y w i t h r e p o r t i n g , o r o t h e r p r o v i s i o n s o f t h e p o l i c i e s , i n c l u d i n g b r e a c h e s o f
w a r r a n t i e s , s h a l l n o t a f f e c f c o v e r a g e p r o v i d e d t o t h e C o m m i s s i o n , i t s d i r e c t o r s , o f f i c i a l s ,
o f f i c e r s , e m p l o y e e s a n d a g e n t s . �
3 . 1 2 . 5 D e d u c t i b l e s a n d S e l f - I n s u r a n c e R e t e n t i o n s . A n y d e d u c t i b l e s
o r s e l f - i n s u r e d r e t e n t i o n s m u s t b e d e c l a r e d t o a n d a p p r o v 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 d o e s n o t a p p r o v e t h e d e d u c t i b l e s o r s e l f - i n s u r e d r e t e n t i o n s a s p r e s e n t e d ,
C o n s u l t a n t s h a l l g u a r a n t e e t h a t , 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 , e i t h e r : ( 1 ) t h e i n s u r e r
s h a l l r e d u c e o r e l i m i n a t e s u c h d e d u c t i b l e s o r s e l f - i n s u r e d r e t e n t i o n s a s r e s p e c t s t h e
C o m m i s s i o n , i t s d i r e c t o r s , o f f i c i a l s , o f f i c e r s , e m p l o y e e s a n d a g e n t s ; o r , ( 2 ) t h e
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Consultant shall procure a bond guaranteeing payment of losses and related
investigation costs, claims and administrative and defense expenses. •
3.12.6 Acceptability of Insurers. Insurance is to be placed with
insurers with a current A.M. Best's rating no less than A:VIII, licensed to do business in
California, and satisfactory to the Commission.
3.12. 7 Verification of Coverage. Consultant shall furnish
Commission with original certificates of insurance and endorsements effecting coverage
required by this Agreement on forms satisfactory to the .;<;ommission. The certificates
and endorsements for each insurance policy shall be ,~!9~ed by a person authorized by
that insurer to bind coverage on its behalf. All certificates and endorsements must be
received and approved by the Commission before work commences. The Commission
reserves the right to require complete, certifiecj~popies of all required insurance policies,
at any time. · ·· ..
3.13 Safety. Consultant ·s~~JI execute and maint~in its work so as to
avoid injury or damage to any person or prop,erty. )t,k,carrying oul~~its Services, the
Consultant shall at all times be in .. compliance with.a · . plicable local, r ••• e and federal
laws, rules and regulattons, and •$li~ll exercise an::;:;." sary precaution for the safety
of employees appropriate to the 11Fi!ure,of;;;the work··a~~;.the conditions under which the
work is to be performed. Safety precgutior\s <lW applicatlJe shall include, but shall riot be
limited to: (A) adequateJife protectitDfih and ·trferst:tving equipment and procedures; (B)
instructions in accident prevention for ·~·V empl~yee,sand subcontractors, such as safe •
walkways, scaffolds, fall prG>~ection ladders,~·ribridges, gang planks, confined space
procedures, trenching and shofitl,g, equipm~nfi:md other safety devices, equipment and
wearing apparel as ar~.::necessacy or lawfu~y. required to prevent accidents or injuries;
and (C) adequate facilitie~ •. ~,t(f>rtheG)proper ·inspection and maintenance of all safety
; ' . /~~·~<· ·~,. c • • ·.·, '
measures.,.
3.14 Fees and Payment.
3.14.1 C~mpens~fion. Consultant shall receive compensation,
including authorized reimbur~~1,11ents, for all Services rendered under this Agreement at
the rates set forth in Exhibit'JS" attached hereto. The total compensation shall not
exceed L_INSERT yYRIT)j;EN DOLLAR AMOUNT__] ($[__INSERT NUMERICAL
DOLLAR AMOUNT __]):c~Jfhout written approval of Commission's Executive Director
("Total Compensation"). <E:xtra Work may be authorized, as described below, and if
authorized, will be compensated at the rates and manner set forth in this Agreement.
3.14.2 Payment of Compensation. Consultant shall submit to
Commission a monthly statement which indicates work completed and hours of
Services rendered by Consultant. The statement shall describe the amount of Services
and supplies provided since the initial commencement date, or since the start of the
subsequent billing periods, as appropriate, through the date of the statement.
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C o m m i s s i o n s h a l l , w i t h i n 4 5 d a y s o f r e c e i v i n g s u c h s t a t e m e n t , r e v i e w t h e s t a t e m e n t a n d
p a y a l l a p p r o v e d c h a r g e s t h e r e o n .
3 . 1 4 . 3 R e i m b u r s e m e n t f o r E x p e n s e s . C o n s u l t a n t s h a l l n o t b e
r e i m b u r s e d f o r a n y e x p e n s e s u n l e s s a u t h o r i z e d i n w r i t i n g b y C o m m i s s i o n .
3 . 1 4 . 4 E x t r a W o r k . A t a n y t i m e d u r i n g t h e t e r m o f t h i s A g r e e m e n t ,
C o m m i s s i o n m a y r e q u e s t t h a t C o n s u l t a n t p e r f o r m E x t r a W o r k . A s u s e d h e r e i n , " E x t r a
W o r k " m e a n s a n y w o r k w h i c h i s d e t e r m i n e d b y C o m m i s s i o n t o b e n e c e s s a r y f o r t h e
p r o p e r c o m p l e t i o n o f t h e P r o j e c t , b u t w h i c h t h e p a r t i e ~ & d i d n o t r e a s o n a b l y a n t i c i p a t e
w o u l d b e n e c e s s a r y a t t h e e x e c u t i o n o f t h i s A g r e e m ~ o f , C o n s u l t a n t s h a l l n o t p e r f o r m ,
n o r b e c o m p e n s a t e d f o r , E x t r a W o r k w i t h o u t w r i t t e n a u t h o r i z a t i o n f r o m C o m m i s s i o n ' s
E x e c u t i v e D i r e c t o r .
3 . 1 5 A c c o u n t i n g R e c o r d s . C q n s u l t a n t s H ~ J : , " m a i n t a i n c o m p l e t e a n d
a c c u r a t e r e c o r d s w i t h r e s p e c t t o a l l c o s t s , a n d e x p e n s e s i n d t : i r r e d a n d f e e s c h a r g e d
u n d e r t h i s A g r e e m e n t . A l l s u c h r e c o r d s s b ~ J I b e c l e a r l y i d e n t i f i a b l e . C o n s u l t a n t s h a l l
a l l o w a r e p r e s e n t a t i v e o f C o m m i s s i o n d u r i r i g ; l n o r m a l b u ~ ~ f l e s s h o u r s . t o o . e x a m i n e , a u d i t ,
a n d m a k e t r a n s c r i p t s o r c o p i e s o f s u c h r e c o l d s a n a n y o t h e r d o c � t 1 f D e n t s c r e a t e d
p u r s u a n t t o t h i s A g r e e m e n t . C o f } s u l t a n t s h a l l � ~ . i n s p e c t i o n o f c f l l w o r k , d a t a ,
d o c u m e n t s , p r o c e e d i n g s , a n d a c t i v i t i e s : 1 t ~ l a t e d t o . t � . " . . . . g r e e m e n t f o r a p e r i o d o f t h r e e
( 3 ) y e a r s f r o m t h e d a t e o f f i n a l m a t u r i t i e s o f t h e t o l l r e v ~ n u e - s u p p o r t e d d e b t i s s u e d a n d
r e l a t e d t o t h i s A g r e e m e n t .
3 . 1 6 . 1 G r o u n d s f o r T e r m i n a t i o n . C o m m i s s i o n m a y , b y w r i t t e n
n o t i c e t o C o f l s ; u l t a n t , t e r m i n a t e ; t h e i w h o l e o r a h y p a r t o f t h i s A g r e e m e n t a t a n y t i m e a n d
w i t h o u t c a u s e � h y g i v i n g w r i t t e n n o t i c e t o < C o n s o f t a n t o f s u c h t e r m i n a t i o n , a n d s p e c i f y i n g
t h e e f f e c t i v e d a t e t h e r e o f . U p o n t e r m i n a t i o n , C o n s u l t a n t s h a l l b e c o m p e n s a t e d o n l y f o r
t h o s e s e r v i c e s w h i c h h a v e b e e n f u l l y a n d a d e q u a t e l y r e n d e r e d t o C o m m i s s i o n t h r o u g h
t h e e f f e c t i v e d a t e o f t h e t e r m i n a t i o n ; a n d C o n s u l t a n t s h a l l b e e n t i t l e d t o n o f u r t h e r
c o m p e n s a t i o n . C o n s u l t a n t m a y n o t t e r m i n a t e t h i s A g r e e m e n t e x c e p t f o r c a u s e .
3 . 1 6 . 2 E f f e c t o f T e r m i n a t i o n . I f t h i s A g r e e m e n t i s t e r m i n a t e d a s
p r o v i d e d h e r e i n , C o m m i s s j o n m a y r e q u i r e C o n s u l t a n t t o p r o v i d e a l l f i n i s h e d o r
u n f i n i s h e d D o c u m e n t s a n d D a t a , a s d e f i n e d b e l o w , a n d o t h e r i n f o r m a t i o n o f a n y k i n d
p r e p a r e d b y C o n s u l t a n t i n c o n n e c t i o n w i t h t h e p e r f o r m a n c e o f S e r v i c e s u n d e r t h i s
A g r e e m e n t . C o n s u l t a n t s h a l l b e r e q u i r e d t o p r o v i d e s u c h d o c u m e n t a n d o t h e r
i n f o r m a t i o n w i t h i n f i f t e e n ( 1 5 ) d a y s o f t h e r e q u e s t .
3 . 1 6 . 3 A d d i t i o n a l S e r v i c e s . I n t h e e v e n t t h i s A g r e e m e n t i s
t e r m i n a t e d i n w h o l e o r i n p a r t a s p r o v i d e d h e r e i n , C o m m i s s i o n m a y p r o c u r e , u p o n s u c h
t e r m s a n d i n s u c h m a n n e r a s i t m a y d e t e r m i n e a p p r o p r i a t e , s e r v i c e s s i m i l a r t o t h o s e
t e r m i n a t e d .
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3.17 Delivery of Notices. All notices permitted or required under this •
Agre.ement shall be given to the respective parties at the following address, or at such
other address as the respective parties may provide in writing for this purpose:
CONSULT ANT:
Attn: --------
COMMISSION:
Riverside County
Transportation Commission
4080 Lemon Street, 3rd Floor
Riverside, CA 92501
Aft1tl?JExecutive Director
', .• ·/;''
:<,·;,.:,:(
Such notice shall be deemed mad~''Wheq"p,ersonally delivered or when
mailed, forty-eight (48) hours after deposit in th~ U.S. MaO, .first class postage prepaid
and addressed to the party at its applicable ~odress. Actti~J;: QOtice shall be deemed
adequate notice on the date actual notice qeeurred, regardless '6f:l:tf:le method of service.
\x ---+~Mjf,h:·
3.18 Ownership of Materials/Confidentiality.. '1<··ii'% ::.
. > \~~·.
3.18.1 Docut:l!tents & Data. Agreement creates an exclusive
and perpetual license for Commis~!ph !o copy, us , ·)£dify, reuse, or sub-license any
and all copyrights and designs embodied )in plans, !S»>ecifications, studies, drawings,
estimates, materials, data and other documents. or works; c;>f authorship fixed in any
tangible medium of expression, includH1g but not limited td,"hysical drawings or data •
magnetically or otoe-~ise r~C;orded on' comtfuter dif§)~~ttes, which are prepared or
caused to be preparea by Consl.Jltant undetlhi~ Agreement ("Documents & Data").
Con~(tar:~l;'Sh~U r~quire all.subcontractors to agree in writing that
Commis.siof! is gr~f)ted an e~d!usive and p.erpetual license for any Documents & Data
the subcontractor prepares under this Agreement.
, . Consulta.nt repr~s.ents and warrants that Consultant has the legal
right to grant the exclusive ,and pe.rpetual license for all such Documents & Data.
Consultant mak~s no such representation and warranty in regard to Documents & Data
which were prepared by design professionals other than Consultant or provided to
Consultant by the Comll)issron.
Commission shall not be limited in any way in its use of the
Documents & Data at any time, provided that any such use not within the purposes
intended by this Agreement shall be at Commission's sole risk.
3.18.2 Intellectual Property. In addition, Commission shall have
and retain all right, title and interest (including copyright, patent, trade secret and other
proprietary rights) in all plans, specifications, studies, drawings, estimates, materials,
data, computer programs or software and source code, enhancements, documents, and
any and all works of authorship fixed in any tangible medium or expression, including •
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b u t n o t l i m i t e d t o , p h y s i c a l d r a w i n g s o r o t h e r d a t a m a g n e t i c a l l y o r o t h e r w i s e r e c o r d e d o n
c o m p u t e r m e d i a ( " I n t e l l e c t u a l P r o p e r t y " ) p r e p a r e d o r d e v e l o p e d b y o r o n b e h a l f o f
C o n s u l t a n t u n d e r t h i s A g r e e m e n t a s w e l l a s a n y o t h e r s u c h I n t e l l e c t u a l P r o p e r t y
p r e p a r e d o r d e v e l o p e d b y o r o n b e h a l f o f C o n s u l t a n t u n d e r t h i s A g r e e m e n t .
T h e C o m m i s s i o n s h a l l h a v e a n d r e t a i n a l l r i g h t , t i t l e a n d i n t e r e s t i n
I n t e l l e c t u a l P r o p e r t y d e v e l o p e d o r m o d i f i e d u n d e r t h i s A g r e e m e n t w h e t h e r o r n o t p a i d
f o r w h o l l y o r i n p a r t b y C o m m i s s i o n , w h e t h e r o r n o t d e v e l o p e d i n c o n j u n c t i o n w i t h
C o n s u l t a n t , a n d w h e t h e r o r n o t d e v e l o p e d b y C o n s u l t a n t . C o n s u l t a n t w i l l e x e c u t e
s e p a r a t e w r i t t e n a s s i g n m e n t s o f a n y a n d a l l r i g h t s t o t h e a b o v e r e f e r e n c e d I n t e l l e c t u a l
P r o p e r t y u p o n r e q u e s t o f C o m m i s s i o n .
C o n s u l t a n t s h a l l a l s o b e r e s p o t ; ~ s i b l e t o o b t a i n i n w r i t i n g s e p a r a t e
w r i t t e n a s s i g n m e n t s f r o m a n y s u b c o n t r a c t o r s o r . a g e n t s o f C g q s u l t a n t o f a n y a n d a l l r i g h t
t o t h e a b o v e r e f e r e n c e d I n t e l l e c t u a l P r o p e r t y ~ S h o u l d C b n s u l t a n t , e i t h e r d u r i n g o r
f o l l o w i n g t e r m i n a t i o n o f t h i s A g r e e m e n t , c ' ; C J e s i r e t o u s e a n y ' O f t h e a b o v e - r e f e r e n c e d
I n t e l l e c t u a l P r o p e r t y , i t s h a l l f i r s t o b t a i n t h e w r i t t e n a p p r o v a l o f t h e C o m m i s s i o n .
' : � , , , " . ' c '
A l l m a t e r i a l s a q d d o c u m e ~ t s w h i c h , , \ t V e r e d e v e l o p ~ d : o r p r e p a r e d b y
t h e C o n s u l t a n t f o r g e n e r a l u s e p f i ~ r < t o t h e e x e c u t r ( ~ i ~ o f t h i s A g r e e m e n t ' ~ n d w h i c h a r e
n o t t h e c o p y r i g h t o f a n y o t h e r p i : i r t y o r . p u b l i c l y ; ~ ~ a i l a b l e a n d a n y o t h e r c o m p u t e r
a p p l i c a t i o n s , s h a l l c o n t i n u e t o b e t h e p r � p e r t y o f t t i e i ; > G o n s u l t a n t . H o w e v e r , u n l e s s
o t h e r w i s e i d e n t i f i e d a n d s t a t e d p r i o r t o e x e c u t i o n o f t h i s A g r e e m e n t , C o n s u l t a n t
r e p r e s e n t s a n d w a r r a n t � ~ t h a t i t h a s t h e r i g h t t o g r a n t , t h e e x c t u s i v e a n d p e r p e t u a l l i c e n s e
f o r a l l s u c h l n t e l l e c t t : t e i f ~ P r o p e f , t y a s p r o v i d e d h e r e i n .
C o r n m i s s i o n J u r t h e r i s � g r a n t e d b y C o n s u l t a n t a n o n - e x c l u s i v e a n d
p e r p e t u a l l i . c e n s e t o c o p y , � u ~ e ( ~ o d i f y o r s u b - - l i c e n s e a n y a n d a l l I n t e l l e c t u a l P r o p e r t y
o t h e r w i s e o w n e d b y C o n s u l t a n t w h i c h i s t h e b a s i s o r f o u n d a t i o n f o r a n y d e r i v a t i v e ,
c o l l e c t i v e , i n s u r r e c t i o n ~ � ! , o r s u p p l e m e n t a l w o r k c r e a t e d u n d e r t h i s A g r e e m e n t .
3 . 1 8 . 3 C o n f i d e n t i a l i t y . A l l i d e a s , m e m o r a n d a , s p e c i f i c a t i o n s , p l a n s ,
p r o c e d u r e s , d r a w i n g s , d e s c r i p t i o n s , c o m p u t e r p r o g r a m d a t a , i n p u t r e c o r d d a t a , w r i t t e n
i n f o r m a t i o n , a n d o t h e r D o c u m e n t s a n d D a t a e i t h e r c r e a t e d b y o r p r o v i d e d t o C o n s u l t a n t
i n c o n n e c t i o n w i t h t h e p e r f o r : m a n c e o f t h i s A g r e e m e n t s h a l l b e h e l d c o n f i d e n t i a l b y
C o n s u l t a n t . S u c h m a t e r i a l s s h a l l n o t , w i t h o u t t h e p r i o r w r i t t e n c o n s e n t o f C o m m i s s i o n ,
b e u s e d b y C o n s u l t a n t J o r f " , ; a h y p u r p o s e s o t h e r t h a n t h e p e r f o r m a n c e o f t h e S e r v i c e s .
N o r s h a l l s u c h m a t e r i a l s b e d i s c l o s e d t o a n y p e r s o n o r e n t i t y n o t c o n n e c t e d w i t h t h e
p e r f o r m a n c e o f t h e S e r v i c e s o r t h e P r o j e c t . N o t h i n g f u r n i s h e d t o C o n s u l t a n t w h i c h i s
o t h e r w i s e k n o w n t o C o n s u l t a n t o r i s g e n e r a l l y k n o w n , o r h a s b e c o m e k n o w n , t o t h e
r e l a t e d i n d u s t r y s h a l l b e d e e m e d c o n f i d e n t i a l . C o n s u l t a n t s h a l l n o t u s e C o m m i s s i o n ' s
n a m e o r i n s i g n i a , p h o t o g r a p h s o f t h e P r o j e c t , o r a n y p u b l i c i t y p e r t a i n i n g t o t h e S e r v i c e s
o r t h e P r o j e c t i n a n y m a g a z i n e , t r a d e p a p e r , n e w s p a p e r , t e l e v i s i o n o r r a d i o p r o d u c t i o n
o r o t h e r s i m i l a r m e d i u m w i t h o u t t h e p r i o r w r i t t e n c o n s e n t o f C o m m i s s i o n .
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Should Consultant receive a subpoena or court order related to this
Agreement, the Services or the Project, Consultant shall immediately provide written •
notice of the subpoena or court order to the Commission in order to allow the
Commission to pursue legal remedies designed to limit any confidential information
required to be disclosed or to assure the confidential treatment of the information
following disclosure. Consultant shall not respond to any such subpoena or court order
until notice to the Commission is provided as required herein, and shall cooperate with
the Commission in responding to the subpoena or court order.
3.19 Cooperation; Further Acts. The Parties shall fully cooperate with
one another, and shall take any additional acts or sign ,any additional documents as
may be necessary, appropriate or convenient to atta1r1the purposes of this Agreement.
3.20 Attorney's Fees. If either ;party commences an action against the
other party, either legal, administrative or oth~!Wise, arising'but of or in connection with
this Agreement, the prevailing party in slJ;~t:i litigation shall be entitled to have and
recover from the losing party reasonable att<frney's fees and costs of such actions.
3.21 Indemnification. Consultant <;shall indemnify and hold the
Commission, its directors, otnilials:.<' officers, ~g~~js, consultants, employees and
volunteers free and harmless fro,;n'>au)y,and· all claims, demands, causes of action,
costs, expenses, liabilities, losses, d.t:,tmages>or injuries, in law or in equity, to property or
persons, including wrongful death, ill any manner arising out of or incident to alleged
negligent acts, omis.sions or:willful misponduct<;>fthe Consultant, its officials, officers, •
employees, agents, ;bonsulta'ttts; and coll*raptors··arisingrout of or in connection with the
performance of the $.ervices, the Project or this Agreement, including without limitation,
the payment of all cohs~quenti~ll.;cjamages, ~ttorneys fees and other related costs and
expenses .. , Gonstjltant §bl~H def~ij\~, (;lt ConS;ultant's own cost, expense and risk, any
and all ,sucfucaforesaid suits, actions or other legal proceedings of every kind that may
be brought or instituted against the Commission, its directors, officials, officers, agents,
consultants, employees and volunteers. Consultant shall pay and satisfy any judgment,
award or decree that may be. rendered against the Commission or its directors, officials,
officers, agents, consultants, employees and volunteers, in any such suit, action or
other legal proce.eding. Consultant shall reimburse the Commission and its directors,
officials, officers, ·agents, consultants, employees and volunteers, for any and all legal
expenses and costs; including reasonable attorney's fees, incurred by each of them in
connection therewith or )n enforcing the indemnity herein provided. Consultant's
obligation to indemnity shall not be restricted to insurance proceeds, if any, received by
the Commission or its directors, officials, officers, agents, consultants, employees and
volunteers. Notwithstanding the foregoing, to the extent Consultant's Services are
subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent
required by Civil Code Section 2782.8, to claims that arise out of, pertain to, or relate to
the negligence, recklessness, or willful misconduct of the Consultant. This Section 3.21
shall survive any expiration or termination of this Agreement.
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3 . 2 2 E n t i r e A g r e e m e n t . T h i s A g r e e m e n t c o n t a i n s t h e e n t i r e A g r e e m e n t
o f t h e p a r t i e s w i t h r e s p e c t t o t h e s u b j e c t m a t t e r h e r e o f , a n d s u p e r s e d e s a l l p r i o r
n e g o t i a t i o n s , u n d e r s t a n d i n g s o r a g r e e m e n t s . T h i s A g r e e m e n t m a y o n l y b e m o d i f i e d b y
a w r i t i n g s i g n e d b y b o t h p a r t i e s .
3 . 2 3 G o v e r n i n g L a w . T h i s A g r e e m e n t s h a l l b e g o v e r n e d b y t h e l a w s o f
t h e S t a t e o f C a l i f o r n i a . V e n u e s h a l l b e i n R i v e r s i d e C o u n t y .
3 . 2 4 T i m e o f E s s e n c e . T i m e i s o f t h e e s s e n c e f o r e a c h a n d e v e r y
p r o v i s i o n o f t h i s A g r e e m e n t .
3 . 2 5 C o m m i s s i o n ' s R i g h t t o E m p J b V ' O t h e r C o n s u l t a n t s . 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 e m p l o y o t h e r : , ; : ~ " 6 n s u l t a n t s i n c o n n e c t i o n w i t h t h i s
P r o j e c t . . f ! " � �
~ 1 P
3 . 2 6 S u c c e s s o r s a n d A s s i g t 1 ~ . T h i s A g r e e m ~ n t : s h a l l b e b i n d i n g o n t h e
s u c c e s s o r s a n d a s s i g n s o f t h e p a r t i e s , a n t : l l s h a l l n o t b e a s s i g n e d b y . . . C o n s u l t a n t w i t h o u t
t h e p r i o r w r i t t e n c o n s e n t o f C o m m i s s i o n . � � �
i , , t ,
3 . 2 7 P r o h i b i t e d l l ~ t e r ~ s t s . .
3 . 2 7 . 1 S o l i c i t J t l ~ n . . e q n s u l t a n t : n a i r l t a i n s a n d w a r r a n t s t h a t i t h a s
n o t e m p l o y e d n o r r e t a i n e d a n y c o m p a n y o r p e r s g , n , o t h e r � t h a n a b o n a f i d e e m p l o y e e
w o r k i n g s o l e l y f o r C ( ) ~ S U ; I t a n t , J o s o l i c W o r s e c u r e ~ i h i s , , . A g r e e t : n e n t . F u r t h e r , C o n s u l t a n t
w a r r a n t s t h a t i t h a s ? i l ( t ' > f p a i d n i l ) r h a s i t a g r e e d t a < ' p a y a t l i ~ , : X ! ( ) m p a n y o r p e r s o n , o t h e r t h a n
a b o n a f i d e e m p l o y ~ e w o r k i n g s o l e l y f o r e j h s u l t a n t , a n } f e e , c o m m i s s i o n , p e r c e n t a g e ,
b r o k e r a g e f e e , g i f t o r o t f i ~ t c o n s i d e r a t i o n c o n t i n g e n t u p o n o r r e s u l t i n g f r o m t h e a w a r d o r
m a k i n g o f t h i s A g r e e m e r i t % ' " F t s r b f ~ . a : c h o r v f ~ l a t i o n o f t h i s w a r r a n t y , C o m m i s s i o n s h a l l
h a v e t h ~ r i g h t t o r e s c i n d t h i s A g r e e m e n t w i t h o u t l i a b i l i t y .
3 . 2 7 : 2 C o n f l i c t o f I n t e r e s t . F o r t h e t e r m o f t h i s A g r e e m e n t , n o
m e m b e r , o f f i c e r o r e m p l o y e e o f C o m m i s s i o n , d u r i n g t h e t e r m o f h i s o r h e r s e r v i c e w i t h
C o m m i s s i o n , s h a l l h a v e a n 9 1 ! ; q i r e c t i n t e r e s t i n t h i s A g r e e m e n t , o r o b t a i n a n y p r e s e n t o r
a n t i c i p a t e d m a t e r i a l b e n e f i t a r i s i n g t h e r e f r o m .
3 . 2 8 E q u a l O p p o r t u n i t y E m p l o y m e n t . C o n s u l t a n t r e p r e s e n t s t h a t i t i s a n
e q u a l o p p o r t u n i t y e m p l o y e r a n d i t s h a l l n o t d i s c r i m i n a t e a g a i n s t a n y e m p l o y e e o r
a p p l i c a n t f o r e m p l o y m e n t b e c a u s e o f r a c e , r e l i g i o n , c o l o r , n a t i o n a l o r i g i n , a n c e s t r y , s e x
o r a g e . S u c h n o n - d i s c r i m i n a t i o n s h a l l i n c l u d e , b u t n o t b e l i m i t e d t o , a l l a c t i v i t i e s r e l a t e d
t o i n i t i a l e m p l o y m e n t , u p g r a d i n g , d e m o t i o n , t r a n s f e r , r e c r u i t m e n t o r r e c r u i t m e n t
a d v e r t i s i n g , l a y o f f o r t e r m i n a t i o n . C o n s u l t a n t s h a l l a l s o c o m p l y w i t h a l l r e l e v a n t p r o v i -
s i o n s o f C o m m i s s i o n ' s D i s a d v a n t a g e d B u s i n e s s E n t e r p r i s e p r o g r a m , A f f i r m a t i v e A c t i o n
P l a n o r o t h e r r e l a t e d C o m m i s s i o n p r o g r a m s o r g u i d e l i n e s c u r r e n t l y i n e f f e c t o r
h e r e i n a f t e r e n a c t e d .
1 1
3 7 0
3.29 Subcontracting. Consultant shall not subcontract any portion of the
work or Services required by this Agreement, except as expressly stated herein, without •
prior written approval ofthe Commission. Subcontracts, if any, shall contain a provision
making them subject to all provisions stipulated in this Agreement.
3.30 Reserved.
3.31 Reserved.
3.32 No Waiver. Failure of Commission to insist on any one occasion
upon strict compliance with any of the terms, covenant$',\or conditions hereof shall not
be deemed a waiver of such term, covenant or condition, nor shall any waiver or
relinquishment of any rights or powers hereunder at any one time or more times be
deemed a waiver or relinquishment of such other right or power at any other time or
times.
.>Y. ~: ~' 1
~</'.:; cc u • +~(f;:
3.33 Eight-Hour Law. Purs~ant to the provisions @:~':~the California Labor
Code, eight hours of labor shall constitute a:'leg;::~l day's,wprk, and fh~J.i~cne of service of
any worker employed on the worJ:< shall be lim~~d and:,restricted to erght hours during
/• ·>'. > ~-. ·«>.~. {:'' :. < . ,' v,'
any one calendar day, and forty R9Jhls in any one'~~~~~hdar week, exceptwhen payment
for overtime is made at not less than, one and on~lbalf the basic rate for all hours
worked in excess of eight hours per~~ay:("Eight-Hour'l.~w"), unless Consultant or the
Services are not subjectJp the EighffiHour Law,,,,.J;;onsultantshall forfeit to Commission
as a penalty, $50.0Q,f(i);(~~i3Ch worker~mployedin the execL,Jt:ion of this Agreement by •
him, or by any sy,~;consuhal)t< under hirn;.for each c~t~ndar day during which such
workman is require{i or permifte;1d to workmore than eight hours in any calendar day
and forty hours in any·· one c,~JE}ndar week without such compensation for overtime
violation ~~4lle provision§: of:,th,~ California Labor Code, unless Consultant or the
Services;~~enotsUbject to the Eight-Hour,;.~;::~w.
:j~~~· .. · ' ' ' '·.
,;;;:!lr. 3.34 Subloenas or Court Orders. Should Consultant receive a
subpoena or\~court orderrelated to this Agreement, the Services or the Project,
Consultant shijU,immediately'provide written notice of the subpoena or court order to the
Commission. Cop~ultant sha'll:inot respond to any such subpoena or court order until
notice to the Comtnission is 'provided as required herein, and shall cooperate with the
Commission in respondir1Q/tpithe subpoena or court order.
3.35 Survival. All rights and obligations hereunder that by their nature
are to continue after any expiration or termination of this Agreement, including, but not
limited to, the indemnification and confidentiality obligations, and the obligations related
to receipt of subpoenas or court orders, shall survive any such expiration or termination.
3.36 No Third Party Beneficiaries. There are no intended third party
beneficiaries of any right or obligation assumed by the Parties.
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3 . 3 7 L a b o r C e r t i f i c a t i o n . B y i t s s i g n a t u r e h e r e u n d e r , C o n s u l t a n t c e r t i f i e s
t h a t i t i s a w a r e o f t h e p r o v i s i o n s o f S e c t i o n . 3 7 0 0 o f t h e C a l i f o r n i a L a b o r C o d e w h i c h
r e q u i r e e v e r y e m p l o y e r t o b e i n s u r e d a g a i n s t l i a b i l i t y f o r W o r k e r s ' C o m p e n s a t i o n o r t o
u n d e r t a k e s e l f - i n s u r a n c 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 a t C o d e , a n d a g r e e s t o
c o m p l y w i t h s u c h p r o v i s i o n s b e f o r e c o m m e n c i n g t h e p e r f o r m a n c e o f t h e S e r v i c e s .
3 . 3 8 C o u n t e r p a r t s . T h i s A g r e e m e n t m a y b e s i g n e d i n 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 c o n s t i t u t e a n o r i g i n a l .
3 . 3 9 I n c o r p o r a t i o n o f R e c i t a l s . T h e r e c i t a l s s e t f o r t h a b o v e a r e t r u e a n d
c o r r e c t a n d a r e i n c o r p o r a t e d i n t o t h i s A g r e e m e n t a s t h o u g h f u l l y s e t f o r t h h e r e i n .
3 . 4 0 I n v a l i d i t y ; S e v e r a b i l i t y . I f a n y p o r t i o n o f t h i s A g r e e m e n t i s d e c l a r e d
i n v a l i d , i l l e g a l , o r o t h e r w i s e u n e n f o r c e a b l e b y a c o u r t o f c o m p e t e n t j u r i s d i c t i o n , t h e
r e m a i n i n g p r o v i s i o n s s h a l l c o n t i n u e i n f u l l f o r c e 1 c : m d e f f e c t .
3 . 4 1 C o n f l i c t i n g P r o v i s i o n s " . ; � , ~ t h e e v e n t t h a t p r c i v i s i o n s o f a n y a t t a c h e d
e x h i b i t s c o n f l i c t i n a n y w a y w i t h t h e p r o v i s i o n s : s 7 t f o r t h i n t , t h i s A g r e e r t l e f ) t , t h e l a n g u a g e ,
t e r m s a n d c o n d i t i o n s c o n t a i n e c j i n t h i s A g r e ' ~ m e n t . . s h a l l c o n t r o l t h ' e a c t i o n s a n d
o b l i g a t i o n s o f t h e P a r t i e s a n d t h e i n t e r p r e t a t i o n o f t h e F ' a r t i e s ' u n d e r s t a n d i h g c o n c e r n i n g
t h e p e r f o r m a n c e o f t h e S e r v i c e s .
3 . 4 2 H e a d i n g s . A r t i c l e � ; a n d S e c t i o n H e a d i 1 1 g s , p a r a g r a p h c a p t i o n s o r
m a r g i n a l h e a d i n g s c o r ; t t a i n e d i n t h i s A g r e e m e n t a r e f o r c o n v e n 1 e n c e o n l y a n d s h a l l h a v e
n o e f f e c t i n t h e c o n s t r u c t i o n o r i n t e r p r e t a t i o n q f a n y p r o v i s i o n h e r e i n . . . . . . '
3 . 4 3 k ~ s i g n m e n t � ~ r T r a n s f e r . C o n s u l t a n t s h a l l n o t a s s i g n , h y p o t h e c a t e ,
o r t r a n s f e r , . . . . e i t h e r . d i r e c t l y o r ; . , b y � o p e r a t i o n o f l a w , t h i s A g r e e m e n t o r a n y i n t e r e s t h e r e i n ,
w i t h o u t t h e p r i o r ; w r i t t E ? n c o h s e n t o f t h e C o m m i s s i o n . A n y a t t e m p t t o d o s o s h a l l b e n u l l
a n d v o i d , a n d a n y a s ~ i . g n e e s , h y p o t h e c a t e s o r t r a n s f e r e e s s h a l l a c q u i r e n o r i g h t o r
i n t e r e s t b y r e a s o n o f s u c h a t t e m p t e d a s s i g n m e n t , h y p o t h e c a t i o n o r t r a n s f e r .
3 . 4 4 A u t h o r i t y t o E n t e r A g r e e m e n t . C o n s u l t a n t h a s a l l r e q u i s i t e p o w e r
a n d a u t h o r i t y t o . c o n d u c t i t s b u s i n e s s a n d 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 t h e
A g r e e m e n t . E a c h P a r t y w a r r a n t s t h a t t h e i n d i v i d u a l s w h o h a v e s i g n e d t h i s A g r e e m e n t
h a v e t h e l e g a l p o w e r , r i g h t , a n d a u t h o r i t y t o m a k e t h i s A g r e e m e n t a n d b i n d e a c h
r e s p e c t i v e P a , r t y .
[ S I G N A T U R E S O N F O L L O W I N G P A G E ]
1 3
3 7 2
SIGNATURE PAGE
TO
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
AGREEMENT FOR INVESTMENT MANAGEMENT SERVICES
WITH [__CONSULTANT__]
IN WITNESS WHEREOF, this Agreement was executed on the date first written
above.
RIVERSIDE COUNTY
TRANSPORTATION COMMISSION
CONSU'LT ANT
[IN$:iRT·N~ME OF CONSULTANT]
By: ---------------------Karen S. Spiegel, Chair
Approved as to Form:
By:
Best Be~t & Krieger LLP
General Counsel
14
373
,,~:1f1l~',
By: ________ ,._,,:·'·~,__ ____ _
Signature .l'
Attest:
By: _______________ _
Its: Secretary
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E x h i b i t " A "
S c o p e o f S e r v i c e s
T h e C o m m i s s i o n r e q u i r e s t h e s e r v i c e s o f a q u a l i f i e d C o n s u l t a n t t o p r o v i d e i n v e s t m e n t
m a n a g e m e n t s e r v i c e s i n c o n n e c t i o n w i t h t h e C o m m i s s i o n ' s s a l e s t a x a n d t o l l r e v e n u e b a s e d
f i n a n c i n g s f o r t h e P r o j e c t d e s c r i b e d i n S e c t i o n 1 . 1 .
T h e s e r v i c e s r e q u e s t e d m a y i n c l u d e t h e f o l l o w i n g :
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D e v e l o p m e n t a n d / o r r e v i e w o f t h e i n v e s t m e n t p o l i c y a n d i n t e r n a l i n v e s t m e n t
p r o c e d u r e s : T h e O f f e r o r m u s t i n i t i a l l y . a n d a n n \ l l ~ l l y a s s i s t i n t h e r e v i e w o f t h e
i n v e s t m e n t p o l i c y , w h i c h i s i n c l u d e d a s p a r t o f t h i s S t a t e m e n t o f W o r k . T h e O f f e r o r m u s t
a l s o p r o v i d e a d v i c e r e g a r d i n g a p p r o p r i a t e i n t e r n a l i n v e s t m e : m t p r o c e d u r e s .
D i s c r e t i o n a f Y o r N o n d i s c r e t i o n a r y P o r t f o l i o m a n a g e m e n t : T h e O f f e r o r m u s t p r o v i d e
f u l l - t i m e , d i s c r e t i o n a r y m a n a g e m e n t o f t h e b o n d i n v e s t m e n t p o r t f o l i o a n d e f f e c t i v e l y
i n v e s t i t s f u n d s p u r s u a n t t o t h e a p p r o v e d i n v e s t m e n t p o l i c y a n d e a s h f l o w s c h e d u l e . T h e
f i r m w i l l b e a v a i l a b l e f o r r e g u l a r a n d r o u t i n e c o m m u n i c a t i o n w i t h s t a f f ; : ~ s o f t e n a s d e e m e d
n e c e s s a r y . T h e g o a l i s t o m a x i m i z e t h e r e t u r n i ( ) g t h e p o r t f o l i o w h i l e p f e s e r v i n g s a f e t y a n d
I . � d � t 2 ' Y k % ' � � ' . � l q U I I y . i . � . � � � . � ; . ; " ; � < ~ <
R e p o r t i n g : T h e O f f e r o r m u ~ ( c : ; p r o v , i d e m o n t ~ l y � r e p o r t s o f h o l d i n g s , t r a n s a c t i o n s ,
p e r f o r m a n c e a n d o t h e r i n f o r m ~ t i o n f ~ r t h e p o r t f o l i o . l % ; ; , T h e O f f e r o r m u s t p r o v i d e o n l i n e
a c c e s s t o t h e p o r t f o l i o . T h e O f f e r o r n i l j ' s t p r o v i d e q u a r t e r l y r e p o r t s o f p e r f o r m a n c e ,
m a r k e t c o n d i t i o n s a n d i r w e s t m e n t s f t e ~ t e g y . �
C r e d i t a n a l y s i ~ o t ' i n v e s t m e n t i n s t t ' l l J J 1 1 e n t s , � i l 1 t h e p o r t f o l i o : T h e O f f e r o r m u s t p r o v i d e
o n g o i n g c r e d i ( ~ m a l y s i s o f i n v e s t m e n t l n s t r o m e n t s , r e p ( ) r t o n c r e d i t r a t i n g s i n t h e p o r t f o l i o
i n t h e m o n t h l y r e p o r t , � a n d i m m e d i a t e l y n o t i f y 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 a n y e v e n t t h a t
s i g n i f i c a n t l y i m p a c t ~ , t c r e d i t w q r t h . i n e s s .
P e r i o d . i c m ~ ~ t i n g s . \ l v i t h , o f f i c i a l s : T h e O f f e r o r m u s t b e a v a i l a b l e t o m e e t w i t h t h e C h i e f
F ) n a n c i a l O f f i c e r a n d C o m m i s s i o n , a s r e q u e s t e d .
S : t a f f t r a i n i n g a n d ~ e d u c a t i o n : T h e O f f e r o r m u s t b e a v a i l a b l e t o s t a f f t o a n s w e r q u e s t i o n s
a n d t o p r o v i d e g e n e r a l g u i d a n c e a n d e d u c a t i o n s i n r e l a t e d a r e a s .
C u s t o d i . a l a n d s a f e k e e p i n g r e v i e w .
B r o k e r / d e a l e r d u e d i l i g e n c e a n d r e l a t i o n s .
A s s i s t a n c e i n t h e d e v e l ~ p m e n t o f p r o j e c t i o n s o f c a s h f l o w f r o m t h e i n v e s t m e n t
p o r t f o l i o . � �
O t h e r i n v e s t m e n t m a n a g e m e n t s e r v i c e s m a y b e r e q u e s t e d b y t h e C o m m i s s i o n r e l a t e d t o t h e
i n v e s t m e n t o f o t h e r C o m m i s s i o n c a s h a n d i n v e s t m e n t s , w h i c h h a d a b a l a n c e o f a p p r o x i m a t e l y
$ 4 3 9 m i l l i o n a s o f D e c e m b e r 3 1 , 2 0 1 2 . I n o r d e r t o d e t e r m i n e t h e n a t u r e a n d e x t e n t o f s u c h
s e r v i c e s , t h e C o m m i s s i o n i s i n t e r e s t e d i n o b t a i n i n g i n f o r m a t i o n a s t o i n v e s t m e n t a d v i s o r y a n d / o r
i n v e s t m e n t m a n a g e m e n t s e r v i c e s r e g a r d i n g t h e i n v e s t m e n t o f t h o s e f u n d s .
3 7 4
Exhibit "B" •
Compensation
[__INSERT__]
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375
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A G E N D A I T E M 1 1
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R I V E R S I D E C O U N T Y T R A N S P O R T A T I O N C O M M I S S I O N
D A T E : A p r i l 2 2 , 2 0 1 3
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 e d e r a l S u r f a c e T r a n s p o r t a t i o n P r o g r a m 2 0 1 3 C a l l f o r
R e h a b i l i t a t i o n P r o j e c t 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 p r o g r a m m i n g f e d e r a l S u r f a c e T r a n s p o r t a t i o n P r o g r a m ( S T P ) f u n d s
f o r r e h a b i l i t a t i o n p r o j e c t s i n t h e a m o u n t o f $ 1 2 . 1 4 2 m i l l i o n a s s u b m i t t e d ; 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 M a r c h 2 0 1 3 m e e t i n g , t h e C o m m i s s i o n a p p r o v e d a C a l l f o r R e h a b i l i t a t i o n
P r o j e c t s f u n d e d w i t h f e d e r a l S T P f u n d s i n t h e a m o u n t o f $ 1 3 . 8 m i l l i o n . T h e
a m o u n t a v a i l a b l e i s a s e t a s i d e o f 2 0 p e r c e n t o f R i v e r s i d e C o u n t y ' s F F Y 2 0 1 2 / 1 3
S T P a p p o r t i o n m e n t e s t i m a t e p r o v i d e d b y C a l t r a n s . C r i t e r i a u s e d f o r e s t a b l i s h i n g
a l l o c a t i o n t a r g e t s f o r e a c h c i t y a n d t h e c o u n t y o f R i v e r s i d e w e r e 2 0 1 0 C e n s u s
p o p u l a t i o n a n d F e d e r a l F u n c t i o n a l C l a s s i f i c a t i o n S y s t e m l a n e m i l e s , w h i c h w e r e
w e i g h t e d 5 0 / 5 0 . S T P f u n d s a r e r e q u i r e d t o b e m a t c h e d a t a m i n i m u m o f
1 1 . 4 7 p e r c e n t . S t a f f r e c e i v e d 2 1 p r o j e c t s b y t h e A p r i l 1 , 2 0 1 3 d e a d l i n e , w h i c h
w i l l b e b r o u g h t f o r w a r d f o r a c t i o n a t t h e M a y C o m m i s s i o n m e e t i n g . A d d i t i o n a l
p r o j e c t s s u b m i t t e d a f t e r t h e d e a d l i n e w i l l b e b r o u g h t f o r w a r d f o r a c t i o n a t t h e
J u n e C o m m i s s i o n m e e t i n g .
S t a f f r e v i e w e d t h e p r o j e c t s u b m i t t a l s f o r c o m p l e t e n e s s a n d r e c o m m e n d s t h e
C o m m i s s i o n a p p r o v e t h e 2 1 p r o j e c t s t o t a l i n g $ 1 2 , 1 4 2 , 0 0 0 i n S T P f u n d s w i t h t h e
l o c a l a g e n c i e s c o m m i t t i n g a t o t a l o f a p p r o x i m a t e l y $ 4 . 3 m i l l i o n i n l o c a l f u n d s . T h e
c o u n t y o f R i v e r s i d e ' s a l l o c a t i o n t a r g e t a m o u n t w i l l b e a d j u s t e d o n c e i n f o r m a t i o n i s
r e c e i v e d f r o m C a l t r a n s r e g a r d i n g F u n c t i o n a l C l a s s i f i c a t i o n S y s t e m l a n e m i l e s f o r t h e
c i t y o f E a s t v a l e t h a t w i l l s e p a r a t e t h e l a n e m i l e s c u r r e n t l y i n c l u d e d i n t h e
u n i n c o r p o r a t e d a r e a . T h e p r o j e c t s a n d f u n d i n g a m o u n t s a r e l i s t e d i n t h e
a t t a c h m e n t . T h e m a j o r i t y o f t h e p r o j e c t s w i l l b e o b l i g a t e d i n F F Y 2 0 1 3 / 1 4 . S t a f f
e x p e c t s a l l o f t h e p r o j e c t s t o b e d e l i v e r e d b y t h e e n d o f F F Y 2 0 1 4 / 1 5 . S t a f f w i l l
r e p o r t b a c k t o t h e C o m m i s s i o n o n t h e s t a t u s o f d e l a y e d p r o j e c t s , i f a n y .
A g e n d a I t e m 1 1
3 7 6
Upon approval, staff will program the projects in the Federal Transportation •
Improvement Program (FTIP). Once the projects are in an approved FTIP, project
sponsors will work with Caltrans District 8 Office of Local Assistance to complete
the federal requirements for obligating the funds.
Federal STP funds are administered through Caltrans; therefore there is no impact
to the Commission's budget.
Attachment: Grouped Project Listing for RCTC's Pavement Resurfacing and/or
Rehabilitation on the Local Roads System
Agenda Item 11
377
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RIV031223-GROUPED PROJECT uAG FOR RCTC'S PAVEMENT RESURFACING ANIR REHABILITATION oN THE LOCAL ROADS svs-1, u Canyon Lake Cathedral C Corona Desert Hot Springs Hemet Indio Ju La Quinta Menifee Moreno Valley Murrieta PalmS s Rai!!:oad Canyon Rd. Pavement Rehab East Palm Ca Dr. Rehab Ontario Ave Pavement Rehab Hacienda Ave & Mission Lakes Blvd. Surface Rehab Gilbert St. Pavement Rehab Old Hwv 111 Pavement Reconstruction Van Buren Blvd. Pavement Rehab St. lmorovements Rd. Pavement Rehab Frederick St. and Elsworth St. Pavement Rehab Jefferson Ave. Pavement Rehab Ramon Rd. Pavement Rehab end of citv limits Railroad Rd. Canyon from Goetz Rd. to Lake Elsinore city limits East Palm Canyon Dr. (former Hwy 111) from the west city limits (Golf Club Dr) to 550ft. west of Canyon Plaza Dr .. & from Melrose St. to the east limits. Ontario Ave. btwn California Ave. and Magnolia Ave. Hacienda Ave from Avenida La Vista to Long Canyon Rd.; Hacienda Ave. from Palm Dr. to Miracle Hill Rd.; and Mission Lakes Blvd. from Santa Cruz Rd. To Verbena Dr. Gilbert St. from Acacia Ave to Stetson Ave. Old Hwy 111 from Rubidoux St. to Oasis St. Van Buren Blvd., from Limonite Ave. to 56th St. Washinaton St. from Calle Tampico to Ave. 52 "''0'Atnnrt Rd. from Bradlev Rd. to Murrieta Rd. Frederick ST. from Sunnymead Blvd. to Alessandro and Elsworth St. from Cactus Ave. to Business Center Dr. Jefferson Ave. from Date St to Murrieta Hot s Rd. Ramon Rd. from west of Sunrise Way to east of Comoadre Rd. 1 378 $37 $5 $42 $337 $45 $382 $832 $108 $940 $182 $24 $206 $443 $75 $518 $477 $991 $1,468 $321 $449 $770 $250 $32 $282 $323 $323 $646 $1,084 $140 $1,224 $593 $77 $670 $396 $51 $447
RIV031223-GROUPED PROJECT LISTING FOR RCTC'S PAVEMENT RESURFACING AND/OR REHABILITATION ON THE LOCAL ROADS SYSTEM 0 Riverside *Riverside County *Riverside County San Jacinto Temecula Wildomar Indiana Ave. Pavement Rehab Rancho California Rd. Pavement Rehab 62nd Street Pavement Rehab San Jacinto Ave Pavement Rehab Winchester Rd. Pavement Rehab Clinton Keith Rd Slurry Seal Rider St. to San Jacinto Ave. Bob Hooe Dr. to Parkview Dr. Indiana Ave. from Valleio St. to Auto Center Dr. De Luz Rd. to Temecula city limits Jackson St. to Harrison St. San Jacinto Ave. from Seventh St. to Menlo Ave. Winchester Rd. from Jefferson Ave. to Ynez Rd. Clinton Keith Rd. from Stable Lns. To George Ave. Total *-Amounts for Riverside County will be adjusted as a result of information regarding city of Eastvale's Federal Functional Classification Svstem lane miles. • 2 379 • $2,723 $353 $3,076 $605 $79 $684 290 100 390 $646 $530 $1,176 $136 $18 $12.1421 $4.340 •
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A G E N D A I T E M 1 2
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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 p r i l 2 2 , 2 0 1 3
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 : J o s e 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 : S u n l i n e T r a n s i t A g e n c y ' s F i s c a l Y e a r 2 0 1 2 / 1 3 S h o r t R a n g e T r a n s i t
P l a n A m e n d m e n 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 m o d i f i c a t i o n t o S u n l i n e T r a n s i t A g e n c y ' s ( S u n l i n e ) F Y 2 0 1 2 / 1 3
c a p i t a l i m p r o v e m e n t p r o g r a m t o r e f l e c t a n a d d i t i o n a l $ 1 , 4 5 6 , 0 0 0 i n F e d e r a l
T r a n s i t A d m i n i s t r a t i o n ( F T A ) S e c t i o n 5 3 0 9 S t a t e o f G o o d R e p a i r ( S G R )
p r o g r a m f u n d s a n d $ 3 1 4 , 5 8 4 i n S o u t h C o a s t A i r Q u a l i t y M a n a g e m e n t
D i s t r i c t ( S C A Q M D ) f u n d s f o r t h e s o l a r p a n e l r e p l a c e m e n t a n d n e w
2 )
i n s t a l l a t i o n p r o j e c t ;
A l l o c a t e $ 4 9 , 4 1 6 i n 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 s t o c o v e r n e e d e d
c a p i t a l m a t c h i n g f u n d s f o r t h e a b o v e S e c t i o n 5 3 0 9 p r o g r a m s o l a r p a n e l
p r o j e c t ;
3 ) A p p r o v e a n a m e n d m e n t t o S u n l i n e ' s S h o r t R a n g e T r a n s i t P l a n ( S R T P ) t o
r e f l e c t t h e c h a n g e s a b o v e ; 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 :
A t i t s J u l y 2 0 1 2 m e e t i n g , t h e C o m m i s s i o n a p p r o v e d a n d a d o p t e d t h e F Y 2 0 1 2 / 1 3
o p e r a t i n g a n d c a p i t a l f u n d i n g a l l o c a t i o n s f o r R i v e r s i d e C o u n t y b a s e d o n t h e
F Y 2 0 1 2 / 1 3 S R T P u p d a t e s p r e p a r e d b y t r a n s i t o p e r a t o r s p r o v i d i n g p u b l i c t r a n s i t
s e r v i c e s i n t h e c o u n t y . S i n c e t h a t t i m e , S u n l i n e w a s a w a r d e d a n a d d i t i o n a l f e d e r a l
g r a n t a w a r d f r o m t h e F T A S e c t i o n 5 3 0 9 S G R p r o g r a m t o p r o v i d e f u n d i n g f o r t h e
r e p l a c e m e n t a n d n e w s o l a r p a n e l p r o j e c t . S u b s e q u e n t l y , S C A Q M D a p p r o v e d
f u n d i n g i n t h e a m o u n t o f $ 3 1 4 , 5 8 4 t o R e n o v a ( t h e c o n t r a c t o r ) t o w a r d t h e p r o j e c t
a s p a r t o f t h e $ 5 3 m i l l i o n A B 1 3 1 8 S e n t i n e l P o w e r P l a n M i t i g a t i o n f u n d i n g a l l o c a t e d
t o t h e C o a c h e l l a V a l l e y . T h i s S C A Q M D a m o u n t w i l l b e a p p l i e d t o w a r d t h e r e q u i r e d
l o c a l m a t c h i n g f u n d s t o t h e F T A S e c t i o n 5 3 0 9 f e d e r a l f u n d s . T o c o m p l e t e t h e
r e q u i r e d 2 0 p e r c e n t m a t c h o f $ 3 6 4 , 0 0 0 , a d d i t i o n a l S T A f u n d s i n t h e a m o u n t o f
$ 4 9 , 4 1 6 a r e b e i n g r e q u e s t e d b y S u n l i n e . T o t a l p r o j e c t c o s t i s $ 1 , 8 2 0 , 0 0 0 a n d
" w i l l b e f u l l y f u n d e d w i t h t h i s a d d i t i o n a l S T A r e q u e s t e d m a t c h f u n d s .
A g e n d a I t e m 1 2 3 8 0
Financial Impact
Since the FTA Section 5309 funds are directly allocated to Sunline, the only
financial impact to the Commission is the allocation of STA funds. Sufficient STA
Coachella Valley capital funding is included in the FY 2013/14 budget to cover the
additional $49,416 to fully support Sunline's solar panel project.
Financial Information
In Fiscal Year Budget: j Yes I Year: I FY 2013/14 Amount: I $49,416
S f F d I State Transit Assistance Funds Budget Adjustment: I No ource 0 un s: (Coachella Valley)
GLA No.: 1241 62 86102 P002202
Fiscal Procedures Approved: I ~~ I Date: j 04/15/13
Attachment: Sunline FY 2012/13 Capital Assistance by Funding Source
Agenda Item 12 381
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"'"~· SUNLINE TI.IT AGENCY FY 2012/13 SRTP-TABLE 4 AMENDMENT# 1 FY 2012/13 CAPITAL ASSISTANCE BY FUNDING SOURCE . --·-·-· --··-·· .. · .. ·-·----............ ,,_,., ....... Project Description Bus Rehabilitation Replacement Service Vehicles (2 trucks 4 relief cars) Thousand Palms Yard Repavina Transit Stop Enhancements Facilrtv lmorovement Office Furniture IT Projects New Agency Phone System Spare Fareboxes (S) Rider Survey Study Maintenance Tools & Eauipment 'SPecial Fuel Provision-CaPital Maintenance Total: CaPital Table 1 b: Modified Capital Funding Plan Project Description Bus Rehabilitation Replacement Service Vehicles (2 trucks. 4 relief cars) Thousand Palms Yard Repaving Transit Stop Enhancements Facility Improvement Office Furniture IT Proiects New Aoency Phone Svstem Spare Fareboxes (S) Rider SurvEr[_Study_ Maintenance Tools & Eauipment Capital Project # Total Amount SL-13-01 $ so 000 SL-13-02 220 000 SL-13-03 900 000 SL-13-04 394 714 SL-13-0S 200 000 SL-13-06 100 000 SL-13-07 10S 000 SL-13-08 115 000 SL-13-09 60 000 SL-13-10 100 000 SL-13-11 so 000 SL-13-12 439 324 $ 2 734 038 Total Amount Without Capital Project # I Carryover Funds SL-13-01 1$ --so 000 SL-13-02 220 000 SL-13-03 900 000 SL-13-04 394 714 SL-13-0S 200 000 SL-13-06 100 000 SL-13-07 10S 000 SL-13-08 11S 000 SL-13-09 60 000 SL-13-10 100 000 SL-13-11 so 000 Special Fuel Provision-Capital Maintenance SL-13-12 I ~~tai'fi~~e1$,~~PI~ce~erif~~ij:fii~Ji~~~itatioh§i~~-L_Z~t.·1 ;:~~_j:z •. 1 Total: Capital $ Federal Section Federal Sec LTF STA 5307 5308 $ 10 000 $ 40 000 44 000 176 000 180 000 720 000 -40 000 160 000 20 000 80 000 21 000 84 000 23 000 92 000 12 000 48 000 20 000 80 000 10 000 40 000 87 86S 3S1 4S9 $ $ 467 865 $ 1 871 459 $ . LTF STA Federal Section I Federal Sec 5307 5308 $ 10 000 $ 40 000 44 000 176 000 180 000 720 000 40 000 160 000 20 000 80 000 21 000 84 000 23 000 92 000 12 000 48 000 20 000 80 000 10 000 40 000 382 Prop 18 Security Funds $ 394 714 $ 394 714 Prop 18 Security Funds $ 394.714 $ . ATTACHMENT. Prop 18 Federal Capital Sec Federal Federal Funds 5316 Sec 5317 Section 5309 AQMD $ $ $ $ Prop 1 8 I Federal Capital Sec I Federal I Federal Sec Funds 5316 Sec 5317 5309 AQMD 314 584 $ 314.584
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A G E N D A I T E M 1 3 "
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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 p r i l 2 2 , 2 0 1 3
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
J i l l i a n G u i z a d o , S t a f f A n a l y s t F R O M : B r i a n C u n a n a n , C o m m u t e r a n d M o t o r i s t A s s i s t a n c e 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 : A g r e e m e n t w i t h C A S E S y s t e m s , I n c . f o r C a l l B o x S y s t e m
M a i n t e n a n c e S e r v i c e s
S T A F F R E C O M M E N D A T / 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 3 - 4 5 - 1 0 2 - 0 0 w i t h C A S E S y s t e m s , I n c . f o r c a l l b o x
s y s t e m m a i n t e n a n c e s e r v i c e 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 f o r a t h r e e - y e a r
t e r m , a n d t w o o n e - 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
2 )
3 )
t o e x c e e d $ 1 , 2 5 0 , 0 0 0 ;
A u t h o r i z e t h e C h a i r o r E x e c u t i v e D i r e c t o r , p u r s u a n t t o l e g a l c o u n s e l r e v i e w ,
t o e x e c u t e t h e a g r e e m e n t o n b e h a l f o f t h e C o m m i s s i o n ; a n d
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 1 9 8 6 , t h e C o m m i s s i o n e s t a b l i s h e d i t s e l f a s t h e R i v e r s i d e C o u n t y 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 ( R C S A F E ) a f t e r t h e e n a c t m e n t o f S B 1 1 9 9 i n
1 9 8 5 . T h e p u r p o s e o f t h e f o r m a t i o n o f S A F E s i n C a l i f o r n i a w a s t o p r o v i d e c a l l b o x
s e r v i c e s a n d , w i t h e x c e s s f u n d s , p r o v i d e a d d i t i o n a l m o t o r i s t a i d s e r v i c e s . F u n d i n g
f o r R C S A F E i s d e r i v e d f r o m a o n e d o l l a r p e r v e h i c l e r e g i s t r a t i o n f e e o n v e h i c l e s
r e g i s t e r e d i n R i v e r s i d e C o u n t y .
T h e C o m m i s s i o n , a c t i n g i n i t s c a p a c i t y a s t h e R C S A F E , o p e r a t e d a s y s t e m o f c a l l
b o x e s a l o n g t h e f r e e w a y s a n d h i g h w a y s i n R i v e r s i d e C o u n t y s i n c e 1 9 9 0 . A t i t s
p e a k , t h e c a l l b o x p r o g r a m h a d 1 , 1 4 9 c a l l b o x e s i n o p e r a t i o n 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 . W i t h t h e a d v a n c e m e n t o f t e c h n o l o g y a n d t h e p r o l i f e r a t i o n o f c e l l u l a r
p h o n e o w n e r s o v e r t h e p 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 t o o k s t e p s t o r e d u c e
t h e n u m b e r o f c a l l b o x e s i n t h e R i v e r s i d e C o u n t y s y s t e m . T h e r e d u c t i o n o f c a l l
b o x e s o v e r t i m e t o n e a r l y h a l f o f i t s p e a k n u m b e r l e d t o s i g n i f i c a n t c o s t s a v i n g s , i n
a d d i t i o n t o a m o r e e f f i c i e n t o p e r a t i o n o f t h e c a l l b o x p r o g r a m . T o d a y , t h e
C o m m i s s i o n o p e r a t e s a n d m a i n t a i n s 5 9 7 c a l l b o x e s .
A g e n d a I t e m 1 3
3 8 3
The process by which a call box may be used by the motoring public is as follows: •
• A motorist who becomes stranded on a Riverside County freeway locates a
call box and picks up the receiver.
• A trained call answering center operator addresses the motorist.
• In communicating with the motorist, the operator is able to understand the
problem the motorist is experiencing and determines a solution.
• Solutions range from transferring the motorist to the California Highway
Patrol (CHP) dispatch in a freeway emergency situation to helping to
dispatch Freeway Service Patrol when on duty to assist in the repair of
vehicles experiencing mechanical problems.
In order to provide this seamless motorist aid service to thousands of motorists per
year, the Commission contracts with a call box system maintenance services firm.
Responsibilities of this firm include performing corrective maintenance, preventive
maintenance, knockdown and vandalism repairs, temporary removals and
reinstallations, and permanent removals. At the Commission's discretion, it can
request special projects work be conducted.
Corrective maintenance includes all repairs to the call box associated with
electronics, transceivers, power supply (battery and solar panel), and the interface
with the cellular system or anything that affects the proper function of the call box.
Preventive maintenance is to be done at least two times per year on each box to •
ensure call boxes are clean and operational. Knockdown and vandalism repairs
occur on an as-needed basis. Similarly, temporary removals and reinstallations are
conducted on an as-needed basis at staff's request. This type of work is typically
only done when the call box will interfere with construction work being done or
when construction work will cause the call box to be temporarily inoperable.
Permanent removals are only done at the request of staff.
In addition to call box maintenance, the maintenance firm is also responsible for
administrative tasks, such as attending meetings, conducting field surveys, issuing
correspondence, obtaining encroachment permits, maintaining inventory and
supplies, and managing an electronic maintenance system.
DISCUSSION:
The Commission, in conjunction with San Bernardino Associated Governments
(SANBAG), serving as the SAFE for San Bernardino County, led a joint procurement
for call box system maintenance services. Consistent with past procurements and
in consideration of the close working relationship the Commission and SANBAG
have with the various commuter and motorist assistance programs in the Inland
Empire region, it was determined it would be both efficient and advantageous for
the agencies to jointly procure for call box system maintenance services.
Agenda Item 1 3
384
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P r o c u r e m e n t P r o c e s s
S t a f f d e t e r m i n e d t h e w e i g h t e d f a c t o r m e t h o d o f s o u r c e s e l e c t i o n t o b e t h e m o s t
a p p r o p r i a t e f o r t h i s p r o c u r e m e n t , a s i t a l l o w s t h e C o m m i s s i o n t o i d e n t i f y t h e m o s t
a d v a n t a g e o u s p r o p o s a l w i t h p r i c e a n d o t h e r f a c t o r s c o n s i d e r e d . N o n - p r i c e f a c t o r s
i n c l u d e e l e m e n t s s u c h a s e x p e r i e n c e , q u a l i f i c a t i o n s o f f i r m s a n d p e r s o n n e l , a n d t h e
a b i l i t y t o r e s p o n d t o t h e r e q u i r e m e n t s s e t f o r t h u n d e r t h e t e r m s o f R e q u e s t f o r
P r o p o s a l s ( R F P ) N o . 1 3 - 4 5 - 1 0 2 - 0 0 .
R F P N o . 1 3 - 4 5 - 1 0 2 - 0 0 w a s r e l e a s e d b y s t a f f a n d a d v e r t i s e d o n M a r c h 4 , 2 0 1 3 .
S t a f f r e s p o n d e d t o a l l q u e s t i o n s s u b m i t t e d b y p o t e n t i a l p r o p o s e r s p r i o r t o t h e
M a r c h 1 4 c l a r i f i c a t i o n d e a d l i n e . T w o f i r m s - C A S E S y s t e m s , I n c . a n d S i e m e n s
I n d u s t r y , I n c . - s u b m i t t e d p r o p o s a l s p r i o r t o t h e A p r i l 1 s u b m i t t a l d e a d l i n e . E a c h o f
t h e f i r m s s u b m i t t e d r e s p o n s i v e a n d r e s p o n s i b l e p r o p o s a l s . T h e p r o p o s a l s w e r e
e v a l u a t e d a n d s c o r e d , b a s e d u p o n t h e e v a l u a t i o n c r i t e r i a s e t f o r t h i n t h e R F P , b y a n
e v a l u a t i o n c o m m i t t e e c o m p r i s e d o f C o m m i s s i o n , S A N B A G , a n d O r a n g e C o u n t y
T r a n s p o r t a t i o n A u t h o r i t y s t a f f .
B a s e d o n t h e e v a l u a t i o n c o m m i t t e e ' s a s s e s s m e n t o f t h e w r i t t e n p r o p o s a l s a n d
p u r s u a n t t o t h e t e r m s o f t h e R F P , t h e e v a l u a t i o n c o m m i t t e e r e c o m m e n d s a n
a g r e e m e n t b e a w a r d e d t o C A S E S y s t e m s , I n c . , a s t h i s f i r m e a r n e d t h e h i g h e s t t o t a l
e v a l u a t i o n s c o r e u n d e r t h e e v a l u a t i o n c r i t e r i a o f t h e R F P .
T h e r e c o m m e n d e d f i r m l a b o r r a t e s w e r e c o m p e t i t i v e l y e s t a b l i s h e d a n d 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 u n d e r t h e a b o v e
r e f e r e n c e d p r o c u r e m e n t p r o c e s s a n d s t a f f e v a l u a t i o n o f h i s t o r i c a l c o s t s p a i d b y t h e
C o m m i s s i o n f o r t h e s a m e o r s i m i l a r s e r v i c e s . S t a f f i s c o n f i d e n t t h e r e c o m m e n d e d
f i r m w i l l p r o v i d e t h e C o m m i s s i o n w i t h q u a l i t y s e r v i c e a t t h e b e s t p o s s i b l e p r i c e .
C o n c l u s i o n
C A S E S y s t e m s , I n c . h a s a n e x t e n s i v e b a c k g r o u n d i n p e r f o r m i n g c a l l b o x s y s t e m
m a i n t e n a n c e s e r v i c e s . T h e f i r m c u r r e n t l y p r o v i d e s t h e s e s e r v i c e s f o r S A N B A G a n d
t h e C o m m i s s i o n a n d h a s b e e n d o i n g s o s i n c e t h e f i r m ' s e s t a b l i s h m e n t i n 2 0 0 8 ,
u p o n a s s u m i n g t h e e x 1 s t 1 n g c o n t r a c t s a n d a s s e t s o f C o m a r c o W i r e l e s s
T e c h n o l o g i e s . C A S E S y s t e m s , I n c . r o u t i n e l y p r o v i d e s e x c e l l e n t m a i n t e n a n c e
s e r v i c e . I t s p r i c i n g w a s t h e m o s t c o m p e t i t i v e o f t h e t w o p r o p o s a l s s u b m i t t e d . B y
s e l e c t i n g C A S E S y s t e m s , I n c . i t w i l l r e s u l t i n a t o t a l c o s t s a v i n g s i n a n a m o u n t o f
$ 7 5 0 , 0 0 0 o v e r t h e p r o p o s a l b y S i e m e n s I n d u s t r y , I n c . f o r t h e f i v e - y e a r p e r i o d .
F o r t h e f i r s t y e a r o f t h e n e w c o n t r a c t p e r i o d w i t h C A S E S y s t e m s I n c . , a c o s t
s a v i n g s o f a t l e a s t $ 2 0 , 0 0 0 w i l l b e r e a l i z e d d u e e x c l u s i v e l y t o t h e r e d u c e d p e r b o x
r a t e o f f e r e d b y t h e f i r m . A d d i t i o n a l c o s t s a v i n g s b u i l t i n t o t h e n e w c o n t r a c t
A g e n d a I t e m 1 3
3 8 5
includes a higher threshold for call box knockdowns and removals as part of the •
new lower cost structure. Future plans for call box reductions will result in further
cost savings for the duration of this agreement.
Based on the information provided, staff recommends awarding Agreement No.
13-45-102-00 to CASE Systems, Inc. in an amount not to exceed $1.25 million.
All obligations incurred by the Commission under the terms of these awards are
funded using local SAFE revenues and are subject to continued funding for motorist
assistance programs in California.
Financial Information
In Fiscal Year Budget: Yes Year: FY 2013/14 Amount: $ 250,000
N/A FY 2015+ $1,000,000
Source of Funds: I SAFE Budget Adjustment: I No
N/A
GL!Project Accounting No.: 002174 73301 00000-0000 202 45 73301
Fiscal Procedures Approved: ~~ J Date: l 04/12/13
Attachment: CASE System, Inc. Agreement No. 13-45-102-00
Agenda Item 1 3
386
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A g r e e m e n t N o . 1 3 - 4 5 - 1 0 2 - 0 0
R I V E R S I D E C O U N T Y 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 G R E E M E N T F O R C A L L B O X S E R V I C E S
W I T H C A S E S Y S T E M S I N C .
1 . P A R T I E S A N D D A T E .
T h i s A g r e e m e n t i s m a d e a n d e n t e r e d i n t o a s o f , 2 0 1 3 , 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 ( " R C T C " )
a c t i n g a s t h e R I V E R S I D E C O U N T Y 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 ( " R C S A F E " ) a n d C A S E S Y S T E M S I N C ( " C o n t r a c t o r " ) , a
C A L I F O R N I A C O R P O R A T I O N .
2 . R E C I T A L S .
2 . 1 C o n t r a c t o r d e s i r e s t o p e r f o r m a n d 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
p r o v i s i o n o f c e r t a i n p r o f e s s i o n a l c o n t r a c t i n g s e r v i c e s r e q u i r e d b y R C S A F E o n t h e t e r m s
a n d c o n d i t i o n s s e t f o r t h i n t h i s A g r e e m e n t . C o n t r a c t o r r e p r e s e n t s t h a t i t i s a
p r o f e s s i o n a l C o n t r a c t o r , e x p e r i e n c e d i n p r o v i d i n g c a l l b o x s e r v i c e s t o p u b l i c c l i e n t s , i s
l i c e n s e d i n t h e S t a t e o f C a l i f o r n i a , a n d i s f a m i l i a r w i t h t h e p l a n s o f R C S A F E .
2 . 2 R C S A F E d e s i r e s t o e n g a g e C o n t r a c t o r t o r e n d e r c e r t a i n
c o n t r a c t i n g s e r v i c e s f o r t h e i n s t a l l a t i o n , r e p a i r , m a i n t e n a n c e a n d r e m o v a l o f c a l l b o x e s
o n f r e e w a y s a n d s t a t e h i g h w a y s w i t h i n t h e b o u n d a r i e s o f R i v e r s i d e C o u n t y ( " P r o j e c t " )
a s s e t f o r t h h e r e i n .
3 . T E R M S .
3 . 1 G e n e r a l S c o p e o f S e r v i c e s . C o n t r a c t o r p r o m i s e s a n d a g r e e s t o
f u r n i s h t o R C S A F E a l l l a b o r m a t e r i a l s , t o o l s , e q u i p m e n t , s e r v i c e s , a n d i n c i d e n t a l a n d
c u s t o m a r y w o r k n e c e s s a r y t o f u l l y a n d a d e q u a t e l y p r o v i d e p r o f e s s i o n a l c o n t r a c t i n g
s e r v i c e s a n d a d v i c e o n v a r i o u s i s s u e s a f f e c t i n g t h e d e c i s i o n s o f R C S A F E r e g a r d i n g t h e
P r o j e c t a n d o n o t h e r p r o g r a m s a n d m a t t e r s a f f e c t i n g R C S A F E , h e r e i n a f t e r r e f e r r e d t o
a s " S e r v i c e s " . T h e S e r v i c e s a r e m o r e p a r t i c u l a r l y d e s c r i b e d i n E x h i b i t " A " a t t a c h e d
h e r e t o a n d i n c o r p o r a t e d h e r e i n b y r e f e r e n c e . A l l S e r v i c e s s h a l l b e s u b j e c t t o , a n d
p e r f o r m e d i n a c c o r d a n c e w i t h , t h i s A g r e e m e n t , t h e e x h i b i t s a t t a c h e d h e r e t o a n d
i n c o r p o r a t e d h e r e i n b y r e f e r e n c e , a n d a l l a p p l i c a b l e l o c a l , s t a t e , a n d f e d e r a l l a w s , r u l e s
a n d r e g u l a t i o n s .
3 . 2 T e r m . T h e t e r m o f t h i s A g r e e m e n t s h a l l c o m m e n c e o n t h e d a t e f i r s t
s p e c i f i e d a b o v e a n d s h a l l t e r m i n a t e t h r e e ( 3 ) y e a r s f r o m s a i d d a t e o n ,
u n l e s s e a r l i e r t e r m i n a t e d a s p r o v i d e d h e r e i n . T h e R C S A F E s h a l l h a v e t h e o p t i o n , i n i t s
s o l e d i s c r e t i o n , t o e x t e n d t h e t e r m o f t h i s A g r e e m e n t f o r t w o ( 2 ) a d d i t i o n a l o n e ( 1 ) y e a r
1
3 8 7
periods. Any such extension shall be made pursuant to an amendment to this •
Agreement.
3.3 Schedule of Services. Contractor shall perform the Services
expeditiously, within the term of this Agreement, and in accordance with the Schedule of
Services set forth in Exhibit "B" attached hereto and incorporated herein by reference.
Contractor represents that it has the professional and technical personnel required to
perform the Services in conformance with such conditions. In orde.r to facilitate
Contractor's conformance with the Schedule, RC SAFE shall respond to Contractor's
submittals in a timely manner. Upon request of RC SAFE:, Contractor shall provide a
more detailed schedule of anticipated performance to tyl~A~the Schedule of Services.
~',,.: '··~>:::'
X;<"'"
3.4 Independent Contractor; CoJ1lti~r,·a:6d Payment of Subordinates.
The Services shall be performed by Contractor under its.:supervision. Contractor will
determine the means, method and details. ()ftr\f>erforming tlt~:.Services subject to the
requirements of this Agreement. RC SJ¥if:E ·retains Contradt()~ on an independent
contractor basis and Contractor is not aneq:lployee of RC SAFE.'\~pntractor retains the
right to perform similar or different services for others during the term G{,this Agreement.
Any additional personnel performing the Servic~s .1-JD~er this Agree ·· . on behalf of
Contractor shall not be employ~e;$'k~,Of RC SAi{~ii~hd shall at all ti es be under
Contractor's exclusive direction arl!(con; I. Contra9t~.r shall pay all wages, salaries,
and other amounts due such personnel in• pection w~h,their performance of Services
under this Agreement and as required by law~ Contractor•.shall be responsible for all
reports and obligations respe.cting such additiqeyatpersonnel, including, but not limited •
to: social security taxes, inco~e tax withhofding~i!Bnem~t()yment insurance, and workers'
compensation insurE:l:Jk'tCe. .·, · ·· · ·
<:4' {~:::;: "-~·~.. /::{,~, '
3.5. Conforman¢e:']o Applic~ble Requirements. All work prepared by
Contractor shaJf.be St).pject to tlje approva:~,:gf RC SAFE.
'~.oV <i~£\t~. . ~>.·" <'
3.6 Substitution of Key Personnel. Contractor has represented to RC
SAFE that certain key pe($onnel wm perform and coordinate the Services under this
Agreement. Should one or'more of such personnel become unavailable, Contractor
may substitute' other personnel of at least equal competence and experience upon
written approval of HC SAFE. In the event that RC SAFE and Contractor cannot agree
as to the substitution of ~~y.:personnel, RC SAFE shall be entitled to terminate this
Agreement for cause, pt.Jrspant to provisions of Section 3.16 of this Agreement. The
key personnel for performance of this Agreement are as follows: ------~-
3.7 RC SAFE's Representative. RC SAFE hereby designates its
Executive Director, or his or her designee, to act as its representative for the
performance of this Agreement ("RC SAFE's Representative"). RC SAFE's
representative shall have the power to act on behalf of RC SAFE for all purposes under
this Agreement. Contractor shall not accept direction from any person other than RC
SAFE's Representative or his or her designee.
388
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3 . 8 C o n t r a c t o r ' s R e p r e s e n t a t i v e . C o n t r a c t o r h e r e b y d e s i g n a t e s
~ - - - - - - - - ' o r h i s o r h e r d e s i g n e e , t o a c t a s i t s r e p r e s e n t a t i v e f o r t h e
p e r f o r m a n c e o f t h i s A g r e e m e n t ( " C o n t r a c t o r ' s R e p r e s e n t a t i v e " ) . C o n t r a c t o r ' s
R e p r e s e n t a t i v e s h a l l h a v e f u l l a u t h o r i t y t o r e p r e s e n t a n d a c t o n b e h a l f o f t h e C o n t r a c t o r
f o r a l l p u r p o s e s u n d e r t h i s A g r e e m e n t . T h e C o n t r a c t o r ' s R e p r e s e n t a t i v e s h a l l s u p e r v i s e
a n d d i r e c t t h e S e r v i c e s , u s i n g h i s o r h e r b e s t s k i l l a n d a t t e n t i o n , a n d s h a l l b e
r e s p o n s i b l e f o r a l l m e a n s , m e t h o d s , t e c h n i q u e s , s e q u e n c e s a n d p r o c e d u r e s a n d f o r t h e
s a t i s f a c t o r y c o o r d i n a t i o n o f a l l p o r t i o n s o f t h e S e r v i c e s u n d e r t h i s A g r e e m e n t .
3 . 9 C o o r d i n a t i o n o f S e r v i c e s . C o n t r a c t o r a g r e e s t o w o r k c l o s e l y w i t h
R C S A F E s t a f f i n t h e p e r f o r m a n c e o f S e r v i c e s a n d s h a l l b e a v a i l a b l e t o R C S A F E ' s
s t a f f , c o n s u l t a n t s a n d o t h e r s t a f f a t a l l r e a s o n a b l e t i m e s >
3 . 1 0 S t a n d a r d o f C a r e ; L i c e n s e s . C o n t r a c t o r s h a l l p e r f o r m t h e S e r v i c e s
u n d e r t h i s A g r e e m e n t i n a s k i l l f u l a n d c o m p e t e n t m a n n e r , c o t t s i s t e n t w i t h t h e s t a n d a r d
g e n e r a l l y r e c o g n i z e d a s b e i n g e m p l o y e d b y p r o f e s s i o n a l s i n t h e s a m e d i s c i p l i n e i n t h e
S t a t e o f C a l i f o r n i a . C o n t r a c t o r r e p r e s e a t s a n d m a i n t a i n s t h a t , , i t i s s k i l l e d i n t h e
p r o f e s s i o n a l c a l l i n g n e c e s s a r y t o p e r f o r m t h e S e r v i c e s ~ C o n t r a c t o r w a r r a n t s t h a t a l l
e m p l o y e e s a n d s u b c o n t r a c t o r s s h ~ l l h a v e s u f f i c i ~ n t s ~ ' } a n d e x p e r i e r 1 t e + ~ O p e r f o r m t h e
S e r v i c e s a s s i g n e d t o t h e m . F i A a t l y , , C o n t r a c t o r ' r e ' , e n t s t h a t i t , i t s e m p l o y e e s a n d
s u b c o n t r a c t o r s h a v e a l l l i c e n s e s , p e r m i t ~ , q u a l i f i c a t i o n s a n d a p p r o v a l s o f w h a t e v e r
n a t u r e t h a t a r e l e g a l l y r e q u i r e d t o p e r f o h i l f ' f t h e S e r v i c e s a n d t h a t s u c h l i c e n s e s a n d
a p p r o v a l s s h a l l b e m a i n t a i n e d t h r o u g h o u t t h e t e r m o f t h i s A g r e e m e n t . C o n t r a c t o r s h a l l
p e r f o r m , a t i t s o w n c o s t a n d e x p e n s e a n d w i t h o u t r , e i m b u r s e r n e n t f r o m R C S A F E , a n y
S e r v i c e s n e c e s s a r y ] p r : c o r r e c t e r r o r s o r o m i s s i o n s w h l c h ~ r e c a u s e d b y t h e C o n t r a c t o r ' s
f a i l u r e t o c o m p l y \ V i t h . . t h e s t a n d a r d o f c a r e p r o v i d e d ' ' f o r h e r e i n , a n d s h a l l b e f u l l y
r e s p o n s i b l e t o R C S A F E f o r a l l d a m a g e s a n d o t h e r l i a b i l i t i e s p r o v i d e d f o r i n t h e
i n d e m n i f i c a t i o n p r o v i s i o m ~ : j : , o f t h i s A g r e e m e n t a r i s i n g f r o m t h e C o n t r a c t o r ' s e r r o r s a n d
o m i s s i o n s .
3 . 1 1 L a w s > a n d R e g u l a t i o n s . C o n t r a c t o r s h a l l k e e p i t s e l f f u l l y i n f o r m e d o f
a n d i n c o m p l i a n c e w i t h a l l l o c a l , s t a t e a n d f e d e r a l l a w s , r u l e s a n d r e g u l a t i o n s i n a n y
m a n n e r a f f e c t i n g t h e p e r f o r m a n c e o f t h e P r o j e c t o r t h e S e r v i c e s , i n c l u d i n g a l l C a i / O S H A
r e q u i r e m e n t s , � a n d s h a l l g i v e a l l n o t i c e s r e q u i r e d b y l a w . C o n t r a c t o r s h a l l b e l i a b l e f o r a l l
v i o l a t i o n s o f s u c h J a w s a n d r e g u l a t i o n s i n c o n n e c t i o n w i t h S e r v i c e s . I f t h e C o n t r a c t o r
p e r f o r m s a n y w o r k k n o w i n g i t t o b e c o n t r a r y t o s u c h l a w s , r u l e s a n d r e g u l a t i o n s a n d
w i t h o u t g i v i n g w r i t t e n n o t i c e t o R C S A F E , C o n t r a c t o r s h a l l b e s o l e l y r e s p o n s i b l e f o r a l l
c o s t s a r i s i n g t h e r e f r o m . C o n t r a c t o r s h a l l d e f e n d , i n d e m n i f y a n d h o l d R C S A F E , i t s
o f f i c i a l s , d i r e c t o r s , o f f i c e r s , e m p l o y e e s a n d a g e n t s f r e e a n d h a r m l e s s , p u r s u a n t t o t h e
i n d e m n i f i c a t i o n p r o v i s i o n s o f t h i s A g r e e m e n t , f r o m a n y c l a i m o r l i a b i l i t y a r i s i n g o u t o f a n y
f a i l u r e o r a l l e g e d f a i l u r e t o c o m p l y w i t h s u c h l a w s , r u l e s o r r e g u l a t i o n s .
3 8 9
3.12 Insurance.
3.12.1 Time for Compliance. Contractor shall not commence work
under this Agreement until it has provided evidence satisfactory to RC SAFE that it has
secured all insurance required under this section. In addition, Contractor shall not allow
any subcontractor to commence work on any subcontract until it has secured all
insurance required under this section.
3.12.2 Minimum Requirements. Contractor shall, at its expense,
procure and maintain for the duration of the AgreemeiJ:b.(nsurance against claims for ....... .( ..•
injuries to persons or damages to property which mayy~rise from or in connection with
the performance of the Agreement by the Contractor, its agents, representatives,
employees or subcontractors. Contractor shall also require all of its subcontractors to
proc_ure and maintain the same insurance fp(, the durati~J!l;. of the Agreement. Such
insurance shall meet at least the following minimum levels ofeQyerage:
., 'n<'~1i.~?:>
(A) Minimum<Scope of lnsurance.'ji"C,~verage shall be at
least as broad as the latest version of th€Ht(l)Jiowing:.;c(1) General~"i::iability: Insurance
Services Office Commercial Gener91 Liability 2overqm~~;(roccurrence forn)j:~G 0001 ); (2)
Automobile Liability: Insurance S:ewices Office Bu~iness Auto Coverage' form number
CA 0001, code 1 (any auto); and1,:,.(3) ;workers' Compensation and Employer's Liability:
Workers' Compensation insurance as required by the S~ate of California and Employer's
Liability Insurance.
'tfti;" (B); , Minimum ""LJrnits of: Insurance. Contractor shall
maintain limits no Je~§Jc;than: (1l·Generalli..:iability: $2,000,000 per occurrence for bodily
injury, personal injury;and propEa,rtY damage:· If Commercial General Liability Insurance
or other fon;n"\wi1h gener<rJ:.;.aggr~ga~~ .limit is>used, either the general aggregate limit
shall apply separatelyto tfiis'Agreement/locationor the general aggregate limit shall be
twice ·fhle required ocb,urrence limit; (2) Automobile Liability: $1,000,000 per accident for
bodily injury and property. damage{ and (3) if Contractor has an employees, Workers'
Compensation and Emp/dyer's Liability: Workers' Compensation limits as required by
the Labor Coge of the State of California. Employer's Practices Liability limits of
$1,000,000 perac<;:ident.
3, 12.3 [Reserved].
3.12:41nsurance Endorsements. The insurance policies shall
contain the following provisions, or Contractor shall provide endorsements on forms
approved by RC SAFE to add the following provisions to the insurance policies:
(A) General Liability. The general liability policy shall be
•
•
endorsed to state that: (1) RCTC, RC SAFE and their directors, officials, officers,
employees and agents shall be covered as additional insureds with respect to the
Services or operations performed by or on behalf of the Contractor, including materials,
parts or equipment furnished in connection with such work; and (2) the insurance •
390
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c o v e r a g e s h a l l b e p r i m a r y i n s u r a n c e a s r e s p e c t s R C T C , R C S A F E a n d t h e i r d i r e c t o r s ,
o f f i c i a l s , o f f i c e r s , e m p l o y e e s a n d a g e n t s , o r i f e x c e s s , s h a l l s t a n d i n a n u n b r o k e n c h a i n
o f c o v e r a g e e x c e s s o f t h e C o n t r a c t o r ' s s c h e d u l e d u n d e r l y i n g c o v e r a g e . A n y i n s u r a n c e
o r s e l f - i n s u r a n c e m a i n t a i n e d b y R C T C , R C S A F E o r i t s d i r e c t o r s , o f f i c i a l s , o f f i c e r s ,
e m p l o y e e s a n d a g e n t s s h a l l b e e x c e s s o f t h e C o n t r a c t o r ' s i n s u r a n c e a n d s h a l l n o t b e
c a l l e d u p o n t o c o n t r i b u t e w i t h i t i n a n y w a y .
( B ) A u t o m o b i l e L i a b i l i t y . T h e a u t o m o b i l e l i a b i l i t y p o l i c y
s h a l l b e e n d o r s e d t o s t a t e t h a t : ( 1 ) R C T C , R C S A F E a n d t h e i r d i r e c t o r s , o f f i c i a l s ,
o f f i c e r s , e m p l o y e e s a n d a g e n t s s h a l l b e c o v e r e d a s a d d , i t i o n a l i n s u r e d s w i t h r e s p e c t t o
t h e o w n e r s h i p , o p e r a t i o n , m a i n t e n a n c e , u s e , l o a d i n g ( ) ' [ ' : u n l o a d i n g o f a n y a u t o o w n e d ,
l e a s e d , h i r e d o r b o r r o w e d b y t h e C o n t r a c t o r o r f o r w h i c h t h e C o n t r a c t o r i s r e s p o n s i b l e ;
a n d ( 2 ) t h e i n s u r a n c e c o v e r a g e s h a l l b e p r i m a r y ' i h s u r a n c e a s r e s p e c t s R C T C , R C
S A F E a n d t h e i r d i r e c t o r s , o f f i c i a l s , o f f i c e r s , e m p l o y e e s a n d a g e n t s , o r i f e x c e s s , s h a l l
s t a n d i n a n u n b r o k e n c h a i n o f c o v e r a g ~ } ' � e x c e s s o f f f f e : C o n t r a c t o r ' s s c h e d u l e d
u n d e r l y i n g c o v e r a g e . A n y i n s u r a n c e o r s e 1 f ~ ~ n s u r a n c e m a i n t a i n e d b y R C T C , R C S A F E
o r t h e i r d i r e c t o r s , o f f i c i a l s , o f f i c e r s , e m p l ~ e e s a n d a g e n t s s h a l l : b e e x c e s s o f t h e
C o n t r a c t o r ' s i n s u r a n c e a n d s h a l l n o t b e c a l l e ! : : ' h f p o n t o c e n t r i b u t e w i t h . \ j . t , " i n a n y w a y .
' f r i i ' ' ~ : ' ' ' � � & ; � . . . . ' � � � ' � .
( C ) ' l t o r : k e r s ' C o m a t i o n a n d E m l < f e r s L i a b i l i t
C o v e r a g e . T h e i n s u r e r s h a l l a g r e " e : t o w a i v e a l l r i g h f � ' Y p f s u b r o g a t i o n a g a i n s t R C T C , R C
S A F E a n d t h e i r d i r e c t o r s , o f f i c i a l s , o , f f i c e r s , . # m p l o y e e s a r y d a g e n t s f o r l o s s e s p a i d u n d e r
t h e t e r m s o f t h e i n s u r a n c e p o l i c y w h i c h a r i s e f r Q r n w o r k p e r f o r m e d b y t h e C o n t r a c t o r .
' } : : ( D ) . . . . A l l C o v e r a g e s . E a c h . t n s u r a n c e p o l i c y r e q u i r e d b y t h i s
A g r e e m e n t s h a l l b e ' : ~ p d o r s e d ' t o s t a t e t t t ~ t : ( A ) c o v e r ' a g e s h a l l n o t b e s u s p e n d e d ,
v o i d e d o r c a n c e l e d e x c e p t a t t ~ r . t h i r t y ( 3 0 ) d a y s p r i o r w r i t t e n n o t i c e b y c e r t i f i e d m a i l ,
r e t u r n r e c ~ i p t : r ; ~ q u e s t e d , , j ~ a s � : : l 1 e � m ' ; t J ~ y e n t o R G . S A F E ; a n d , ( B ) a n y f a i l u r e t o c o m p l y
w i t h r e p o r t i n g > o r o t h e r p r o \ i i s i o n s o f t h e t t t ? l i c i e s , r � i n c l u d i n g b r e a c h e s o f w a r r a n t i e s , s h a l l
n o t a f f e c t c o v e r a g e p ~ p v i d e d t ( ) ; R C T C , R C S A F E o r t h e i r d i r e c t o r s , o f f i c i a l s , o f f i c e r s ,
e m p l o y e e s a n d a g e n t s :
3 . 1 2 . 5 D e d u c t i b l e s a n d S e l f - I n s u r a n c e R e t e n t i o n s . A n y d e d u c t i b l e s
o r s e l f - i n s u r e d r e t e n t i o n s m u s t ' b e d e c l a r e d t o a n d a p p r o v e d b y R C S A F E . I f R C S A F E
d o e s n o t a p p r o v e t h e d e d u e t i b l e s o r s e l f - i n s u r e d r e t e n t i o n s a s p r e s e n t e d , C o n t r a c t o r
s h a l l g u a r a n t e e t h a t , / a t t h e o p t i o n o f R C S A F E , e i t h e r : ( 1 ) t h e i n s u r e r s h a l l r e d u c e o r
e l i m i n a t e s u c h d e d u c t i b t e s o r s e l f - i n s u r e d r e t e n t i o n s a s r e s p e c t s R C S A F E , i t s d i r e c t o r s ,
o f f i c i a l s , o f f i c e r s , e m p l o y e e s a n d a g e n t s ; o r , ( 2 ) t h e C o n t r a c t o r s h a l l p r o c u r e a b o n d
g u a r a n t e e i n g p a y m e n t o f l o s s e s a n d r e l a t e d i n v e s t i g a t i o n c o s t s , c l a i m s a n d
a d m i n i s t r a t i v e a n d d e f e n s e e x p e n s e s .
3 . 1 2 . 6 A c c e p t a b i l i t y o f I n s u r e r s . I n s u r a n c e i s t o b e p l a c e d w i t h
i n s u r e r s w i t h a c u r r e n t A . M . B e s t ' s r a t i n g n o l e s s t h a n A : V I I I , l i c e n s e d t o d o b u s i n e s s i n
C a l i f o r n i a , a n d s a t i s f a c t o r y t o R C S A F E .
3 9 1
3.12.7 Verification of Coverage. Contractor shall furnish RC SAFE •
with original certificates of insurance and endorsements effecting coverage required by
this Agreement on forms satisfactory to RC SAFE. The certificates and endorsements
for each insurance policy shall be signed by a person authorized by that insurer to bind
coverage on its behalf. All certificates and endorsements must be received and
approved by RC SAFE before work commences. RC SAFE reserves the right to require
complete, certified copies of all required insurance policies, at any time.
3.13 Safety. Contractor shall execute and maintain its work so as to
avoid injury or damage to any person or property. In carrying out its Services, the
Contractor shall at all times be in compliance with all ~P@Jjeable local, state and federal
laws, rules and regulations, and shall exercise all nedessary precautions for the safety
of employees appropriate to the nature of the work and:the conditions under which the
work is to be performed. Safety precautions as applicable'shall include, but shall not be
limited to: (A) adequate life protection andJif~~~'saving equiph'l~nt and procedures; (B)
instructions in accident prevention for all1;:¢mployees and subo~ntractors, such as safe
walkways, scaffolds, fall protection ladder~.. bridges, gang ptanks, confined space
procedures, trenching and shoring, equipmentt~and othe.fi~afety devi<!~s:. equipment and
wearing apparel as are necessaryor lawfullyretljuirecliti:>prevent acciE;fents or injuries;
and (C) adequate facilities for ~ffle lRfOper inspe~~.i~~" and maintenance of all safety
measures. . ... ·" '· . ·. ·
:~:t::
3.14 Fees and Payment.
. . ~J4.1 Cbmpensation... .Contract~r ··.~hall receive compensation,
including authorizedFfieimbursem:ents, for aiiServices rendered under this Agreement at
the rates set forth in Scope of Services in Exhibit "C" attached hereto. The total
compensa~}on;~;,:::~hc;tll not . e)(ceed ~~l_.INSERtl WRITTEN DOLLAR AMOUNT__]
($l_.IN$1;RT NUMI::RICAL;;DOLLAR .AMOUNT__]) without written approval of RC
SAFE'9,Executive · Dfrector ('1Tc:)tal Compensation"). Extra Work may be authorized, as
describect:below, and ifauthori:zed, will be compensated at the rates and manner set
forth in this Agreement.
. 3.14.2 Payment of Compensation. Contractor shall submit to RC .
SAFE a monthly statement which indicates work completed and hours of Services
rendered by Contractpr. .. The statement shall describe the amount of Services and
supplies provided since the initial commencement date, or since the start of the
subsequent billing periods, as appropriate, through the date of the statement. RC
SAFE shall, within 45 days of receiving such statement, review the statement and pay
all approved charges thereon.
3.14.3 Reimbursement for Expenses. Contractor shall not be
reimbursed for any expenses unless authorized in writing by RC SAFE.
•
3.14.4 Extra Work. At any time during the term of this Agreement,
RC SAFE may request that Contractor perform Extra Work. As used herein, "Extra •
392
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W o r k " m e a n s a n y w o r k w h i c h i s d e t e r m i n e d b y R C S A F E t o b e n e c e s s a r y f o r t h e p r o p e r
c o m p l e t i o n o f t h e P r o j e c t , b u t w h i c h t h e p a r t i e s d i d n o t r e a s o n a b l y a n t i c i p a t e w o u l d b e
n e c e s s a r y a t t h e e x e c u t i o n o f t h i s A g r e e m e n t . C o n t r a c t o r s h a l l n o t p e r f o r m , n o r b e
c o m p e n s a t e d f o r , E x t r a W o r k w i t h o u t w r i t t e n a u t h o r i z a t i o n f r o m R C S A F E ' s E x e c u t i v e
D i r e c t o r .
3 . 1 5 A c c o u n t i n g R e c o r d s . C o n t r a c t o r s h a l l m a i n t a i n c o m p l e t e a n d
a c c u r a t e r e c o r d s w i t h r e s p e c t t o 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 a n d f e e s c h a r g e d
u n d e r t h i s A g r e e m e n t . A l l s u c h r e c o r d s s h a l l b e c l e a r l y i d e n t i f i a b l e . C o n t r a c t o r s h a l l
a l l o w a r e p r e s e n t a t i v e o f R C S A F E d u r i n g n o r m a l b u s i n e s s h o u r s t o e x a m i n e , a u d i t , a n d
m a k e t r a n s c r i p t s o r c o p i e s o f s u c h r e c o r d s a n d a n y o t h e t 1 ' d o c u m e n t s c r e a t e d p u r s u a n t
t o t h i s A g r e e m e n t . C o n t r a c t o r s h a l l a l l o w i n s p e c t i t i n ' o f a l l w o r k , d a t a , d o c u m e n t s ,
p r o c e e d i n g s , a n d a c t i v i t i e s r e l a t e d t o t h e A g r e e m e n ! : J o r a p e r i o d o f t h r e e ( 3 ) y e a r s f r o m
t h e d a t e o f f i n a l p a y m e n t u n d e r t h i s A g r e e m e n t . , : ~ ; > ' ' ; ; ' ! t ' <
3 . 1 6 T e r m i n a t i o n o f A g r e e m e n t !
3 . 1 6 . 1 G r o u n d s f o r T e r m ~ f n a t i o n . R C , , S A F E m a y ) ; ; l ; ) y w r i t t e n n o t i c e
t o C o n t r a c t o r , t e r m i n a t e t h e w h o l ~ o r a n y p a r t o f ; 1 ~ } l l i . � m e n t a t a n l t i f ; ) ! e a n d w i t h o u t
c a u s e b y g i v i n g w r i t t e n n o t i c e : t o : C o n t r a c t o r o f ' ~ . . . � ' ' t e r m i n a t i o n , a n d ' r s p e c i f y i n g t h e
e f f e c t i v e d a t e t h e r e o f . U p o n t e r ~ i , n a t i , b , n , C o n t r a < : : r o r , s h a l l b e c o m p e n s a t e d o n l y f o r
t h o s e s e r v i c e s w h i c h h a v e b e e n f u l l y a n d � a 9 ~ q u a t e l y r e J l \ ~ e r e d t o R C S A F E t h r o u g h t h e
e f f e c t i v e d a t e o f t h e t e r m i n a t i o n , a n d C o F T t r a c t o r s f i ~ , l t b e e n t i t l e d t o n o f u r t h e r
c o m p e n s a t i o n . C o n t r a d o r , ' r n a y n o t t e r m i r ~ a t e t h i s A g ' t e e m e n t e x c e p t f o r c a u s e .
- < ~ . : ; " " , c . : , , ; : ; " f ; ; ; - : } 5 : < , , c + f i > ~ 3 , : 1 6 . 2 E f f ; ~ t o f T e r m i n ~ t ' i 6 n . I f t h i ~ A g r e e m e n t i s t e r m i n a t e d a s
p r o v i d e d h e r e i n , R C S A F E m a y i r e q u i r e C o r i f t a c t o r t o p r o v i d e a l l f i n i s h e d o r u n f i n i s h e d
D o c u m e n t s a n d D a t a , a s d e f i n e d b e l o w , a n d : � ~ t h e r i n f o r m a t i o n o f a n y k i n d p r e p a r e d b y
C o n t r a c t o r i n ' c o n n e c t i o n W i t h t h e p e r f t > r m a n c e o f S e r v i c e s u n d e r t h i s A g r e e m e n t .
C o n t r a c t o r s h a l l b e : t e q u i r e d t b p r o v i d e s u c h d o c u m e n t a n d o t h e r i n f o r m a t i o n w i t h i n
f i f t e e n ( 1 5 ) d a y s o f t h e r e q _ u e s t .
3 . 1 6 . 3 A d d i t i o n a l S e r v i c e s . I n t h e e v e n t t h i s A g r e e m e n t i s
t e r m i n a t e d i n W h o l e o r i n p a r t a s p r o v i d e d h e r e i n , R C S A F E m a y p r o c u r e , u p o n s u c h
t e r m s a n d i n s u c h ; m a n n e r a s i t m a y d e t e r m i n e a p p r o p r i a t e , s e r v i c e s s i m i l a r t o t h o s e
t e r m i n a t e d .
3 . 1 7 D e l i v e r y o f N o t i c e s . A l l n o t i c e s p e r m i t t e d o r r e q u i r e d u n d e r t h i s
A g r e e m e n t s h a l l b e g i v e n t o t h e r e s p e c t i v e p a r t i e s a t t h e f o l l o w i n g a d d r e s s , o r a t s u c h
o t h e r a d d r e s s a s t h e r e s p e c t i v e p a r t i e s m a y p r o v i d e i n w r i t i n g f o r t h i s p u r p o s e :
3 9 3
CONTRACTOR:
Attn: -----
RCSAFE:
Riverside County Service
Authority for Freeway Emergencies
4080 Lemon Street, 3rd Floor
Riverside, CA 92501
Attn: Executive Director
Such notice shall be deemed made when personally delivered or when
mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid
and addressed to the party at its applicable address&C<':r:{:\ctual notice shall be deemed
adequate notice on the date actual notic~ occurred,J~gardless of the method of service.
3.18 Ownership of Materials/Confidentiality({,
3.18.1 Documents & "'ID~ta. This AgreenieJ!lt 3 creates an exclusive
and perpetual license for RC SAFE to cop~{;:[use, modify, reuse, ·o~\'Sub-license any and
all copyrights and designs embodied in ,plans, specifications;'' stt;t.dies, drawings,
estimates, materials, data and ()tper documet;\{~;.; or works of autho' .. fixed in any
tangible medium of expression,(jrr . ing but not~3iPlited to, physical d ·wings or data
magnetically or otherwise recor ·. ·~~~,,computer~~~~~ettes, which are prepared or
caused to be prepared by Contractor~t~.naert~is Agreemenl ("Documents & Data").
•
Q$lnir~~l<ilX shall require all.s.ubco{ltr~dbi;s to agree in writing that •
RC SAFE is grantedich1 excfl?lpive and perpet:tiJ;al'license:for any Documents & Data the
subcontractor prepa(~~ under tl')~~ Agreeme~~( · ·
~~;>' ::11>
.fl. . l'' ... Cont~~~tor:r'epresents and warrants that Contractor has the legal
right to< . .g~~nt Wre e~clusiv~ and perpetual license for all such Documents & Data.
Contractor makes noJ.·~uch repres.~ntation a~:g warranty in regard to Documents & Data
which were prepared by .desigrt<'professionals other than Contractor or provided to
Contractor byRC SAFE.
RC SAEE shall not be limited in any way in its use of the
Documents & Data at any tiJ,'me, provided that any such use not within the purposes
intended by this Agreernent ~~all be at RC SAFE's sole risk.
3.1B.21ntellectual Property. In addition, RC SAFE shall have and
retain all right, title and interest (including copyright, patent, trade secret and other
proprietary rights) in all plans, specifications, studies, drawings, estimates, materials,
data, computer programs or software and source code, enhancements, documents, and
any and all works of authorship fixed in any tangible medium or expression, including
but not limited to, physical drawings or other data magnetically or otherwise recorded on
computer media ("Intellectual Property") prepared or developed by or on behalf of
Contractor under this Agreement as well as any other such Intellectual Property
prepared or developed by or on behalf of Contractor under this Agreement. •
394
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R C S A F E s h a l l h a v e a n d r e t a i n a l l r i g h t , t i t l e a n d i n t e r e s t . i n
I n t e l l e c t u a l P r o p e r t y d e v e l o p e d o r m o d i f i e d u n d e r t h i s A g r e e m e n t w h e t h e r o r n o t p a i d
f o r w h o l l y o r i n p a r t b y R C S A F E , w h e t h e r o r n o t d e v e l o p e d i n c o n j u n c t i o n w i t h
C o n t r a c t o r , a n d w h e t h e r o r n o t d e v e l o p e d b y C o n t r a c t o r . C o n t r a c t o r w i l l e x e c u t e
s e p a r a t e w r i t t e n a s s i g n m e n t s o f a n y a n d a l l r i g h t s t o t h e a b o v e r e f e r e n c e d I n t e l l e c t u a l
P r o p e r t y u p o n r e q u e s t o f R C S A F E .
C o n t r a c t o r s h a l l a l s o b e r e s p o n s i b l e t o o b t a i n i n w r i t i n g s e p a r a t e
w r i t t e n a s s i g n m e n t s f r o m a n y s u b c o n t r a c t o r s o r a g e n t s o f C o n t r a c t o r o f a n y a n d a l l r i g h t
t o t h e a b o v e r e f e r e n c e d I n t e l l e c t u a l P r o p e r t y . S h o u l d , C o n t r a c t o r , e i t h e r d u r i n g o r
f o l l o w i n g t e r m i n a t i o n o f t h i s A g r e e m e n t , d e s i r e t o u s e a n y o f t h e a b o v e - r e f e r e n c e d
I n t e l l e c t u a l P r o p e r t y , i t s h a l l f i r s t o b t a i n t h e w r i t t e n a � ~ ~ r o v a l o f R C S A F E .
A l l m a t e r i a l s a n d d o c u m e n t s w h i c h w e r e d e v e l o p e d o r p r e p a r e d b y
t h e C o n t r a c t o r f o r g e n e r a l u s e p r i o r t o t l " ) ~ ~ ' e , x e c u t i o n o f t h i s A g r e e m e n t a n d w h i c h a r e
n o t t h e c o p y r i g h t o f a n y o t h e r p a r t y o t � : p u b l i c l y a v a i l a b l e a n d o , � m y o t h e r c o m p u t e r
a p p l i c a t i o n s , s h a l l c o n t i n u e t o b e t h e p r o p e r t y o f t h e , . \ . C o n t r a c t o r . H o w e v e r , u n l e s s
o t h e r w i s e i d e n t i f i e d a n d s t a t e d p r i o r t o e x s c b t i g J S 1 : 0 ( > f t h i s A g r e e m e n t , C o n t r a c t o r
r e p r e s e n t s a n d w a r r a n t s t h a t i t h a s ~ t f { J ~ r i g h t t o g r a r \ t \ f h e e x c l u s i v e a n d p e r p e t u a l l i c e n s e
f o r a l l s u c h I n t e l l e c t u a l P r o p e r t y a s ~ � { ( t ~ i < l t ~ 9 h e r e i n .
< ) , ~ , L - ~ , , ( ~ ~ ~
R C S A F E f u r t h e r i s g r a n t e d , b y C o n t r a c t o r a n o n - e x c l u s i v e a n d
p e r p e t u a l l i c e n s e t o c o p y , : u s e , m o d i f y o r s u b - l i c e n s e a n y a n d a l l I n t e l l e c t u a l P r o p e r t y
o t h e r w i s e o w n e d b y C o n t r a c t o r , w h i c h I s . t h e � t r a s i s ' i � o r f o u n d a t i o n f o r a n y d e r i v a t i v e ,
c o l l e c t i v e , i n s u r r e c t i o n a l , o r s u p p l e m e n t a l V \ ( b r k c r e a t e d u n d e r t h i s A g r e e m e n t .
3 . 1 8 ~ � 3 C o f i t i d e A . t i a h t y . A l l j i ( ; i e a s , m e m o r a n d a , s p e c i f i c a t i o n s , p l a n s ,
p r o c e d u r e s , d r a w i n g s , d e s c r i p t i o n s , � c o m p u t e r p r o g r a m d a t a , i n p u t r e c o r d d a t a , w r i t t e n
i n f o r m a t i o n , a n d o t h e r D o c u m e n t s a n d D a t a e i t h e r c r e a t e d b y o r p r o v i d e d t o C o n t r a c t o r
i n c o n n e c t i o n w i t h t h e p e r f o r m a n c e o f t h i s A g r e e m e n t s h a l l b e h e l d c o n f i d e n t i a l b y
C o n t r a c t o r . S u c h m a t e r i a l s ~ h a l l n b t , � w i t h o u t t h e p r i o r w r i t t e n c o n s e n t o f R C S A F E , b e
u s e d b y C o n t r a c t o r f o r a n y p u r p o s e s ~ o t h e r t h a n t h e p e r f o r m a n c e o f t h e S e r v i c e s . N o r
s h a l l s u c h m a t e r i a l s b e d i s c l o s e d t o a n y p e r s o n o r e n t i t y n o t c o n n e c t e d w i t h t h e
p e r f o r m a n c e o f t h e S e r v i c e s o r t h e P r o j e c t . N o t h i n g f u r n i s h e d t o C o n t r a c t o r w h i c h i s
o t h e r w i s e k n o w n t o C o n t r a c t o r o r i s g e n e r a l l y k n o w n , o r h a s b e c o m e k n o w n , t o t h e
r e l a t e d i n d u s t r y s h a l l b e d e e m e d c o n f i d e n t i a l . C o n t r a c t o r s h a l l n o t u s e R C S A F E ' s
n a m e o r i n s i g n i a , p h o t o g r a p h s o f t h e P r o j e c t , o r a n y p u b l i c i t y p e r t a i n i n g t o t h e S e r v i c e s
o r t h e P r o j e c t i n a n y m a g a z i n e , t r a d e p a p e r , n e w s p a p e r , t e l e v i s i o n o r r a d i o p r o d u c t i o n
o r o t h e r s i m i l a r m e d i u m w i t h o u t t h e p r i o r w r i t t e n c o n s e n t o f R C S A F E .
3 . 1 9 C o o p e r a t i o n ; F u r t h e r A c t s . T h e P a r t i e s s h a l l f u l l y c o o p e r a t e w i t h
o n e a n o t h e r , a n d s h a l l t a k e a n y a d d i t i o n a l a c t s o r s i g n a n y a d d i t i o n a l d o c u m e n t s a s
m a y b e n e c e s s a r y , a p p r o p r i a t e o r c o n v e n i e n t t o a t t a i n t h e p u r p o s e s o f t h i s A g r e e m e n t .
3 9 5
3.20 Attorney's Fees. If either party commences an action against the
other party, either legal, administrative or otherwise, arising out of or in connection with •
this Agreement, the prevailing party in such litigation shall be entitled to have and
recover from the losing party reasonable attorney's fees and costs of such actions.
3.21 Indemnification. Contractor shall indemnify and hold RCTC, RC
SAFE and their directors, officials, officers, agents, Contractors, employees and
volunteers free and harmless from any and all claims, demands, causes of action,
costs, expenses, liabilities, losses, damages or injuries, in law or in equity, to property or
persons, including wrongful death, in any manner arising out of or incident to alleged
negligent acts, omissions or willful misconduct of the Contractor, its officials, officers,
employees, agents, Contractors, and contractors arising out of or in connection with the
performance of the Services, the Project or this Agreem~f;lt, including without limitation,
the payment of all consequential damages, attorneys fees and other related costs and
expenses. Contractor shall defend, at Contractor's own cost,~xpense and risk, any and
all such aforesaid suits, actions or other:Jegal proceedings bl':every kind that may be
brought or instituted against RCTC, RG'i$~FE and their directo~s, officials, officers,
agents, Contractors, employees and volun'teers. Contractor shallp~y""and satisfy any
judgment, award or decree that may be rendef~~t ,ainst RCTC, R'~'*·~AFE or their
directors, officials, officers, agent$, ¢ontractors, ~'FM'pl ' es and volunteers, in any such
suit, action or other legal proceeding. ,.G()otractor s'REiAIK[~imburse RCTC, RC SAFE and
their directors, officials, officers, agents, Contractors, ei:la·ployees and volunteers, for any
and all legal expenses an.d costs, including reasonable attorney's fees, incurred by each
of them in connecti<?~ <therewith or in enforcing the indemnity herein provided. •
Contractor's obligation·fo indemnity shaUnqU>e.restricted to insurance proceeds, if any,
received by RCTC, ~~ SAFE 'Q.r their directors, officials, officers, agents, Contractors,
employees and volun~ers. Thii Section 3.21 shall survive any expiration or termination
of this Agr~EPm~QJ.,
Ji;~h:'
.xr· 3.22 Edtire Agreement. This Agreement contains the entire Agreement
of .the parties with re~~~ct to the subject matter hereof, and supersedes all prior
negotiatiditrs, understanding$ or agreements. This Agreement may only be modified by
a writing signed by both parties.
3.23 Governing Law. This Agreement shall be governed by. the laws of
the State of California. Ver;~ue shall be in Riverside County.
3.24 Time of Essence. Time is of the essence for each and every
provision of this Agreement.
3.25 RC SAFE's Right to Employ Other Contractors. RC SAFE reserves
the right to employ other Contractors in connection with this Project.
3.26 Successors and Assigns. This Agreement shall be binding on the
successors and assigns of the parties, and shall not be assigned by Contractor without
the prior written consent of RC SAFE.
396
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3 . 2 7 P r o h i b i t e d I n t e r e s t s .
3 . 2 7 . 1 S o l i c i t a t i o n . C o n t r a c t o r m a i n t a i n s a n d w a r r a n t s t h a t i t h a s
n o t e m p l o y e d n o r r e t a i n e d a n y c o m p a n y o r p e r s o n , o t h e r t h a n a b o n a f i d e e m p l o y e e
w o r k i n g s o l e l y f o r C o n t r a c t o r , t o s o l i c i t o r s e c u r e t h i s A g r e e m e n t . F u r t h e r , C o n t r a c t o r
w a r r a n t s t h a t i t h a s n o t p a i d n o r h a s i t a g r e e d t o p a y a n y c o m p a n y o r p e r s o n , o t h e r t h a n
a b o n a f i d e e m p l o y e e w o r k i n g s o l e l y f o r C o n t r a c t o r , a n y f e e , R C S A F E , p e r c e n t a g e ,
b r o k e r a g e f e e , g i f t o r o t h e r c o n s i d e r a t i o n c o n t i n g e n t u p o n o r r e s u l t i n g f r o m t h e a w a r d o r
m a k i n g o f t h i s A g r e e m e n t . F o r b r e a c h o r v i o l a t i o n o f t h i s w a r r a n t y , R C S A F E s h a l l h a v e
t h e r i g h t t o r e s c i n d t h i s A g r e e m e n t w i t h o u t l i a b i l i t y . : ; :
3 . 2 7 . 2 C o n f l i c t o f I n t e r e s t . F o r t h e t e r m o f t h i s A g r e e m e n t , n o
m e m b e r , o f f i c e r o r e m p l o y e e o f R C S A F E , d u r i n g ' t h e t e r M o f h i s o r h e r s e r v i c e w i t h R C
S A F E , s h a l l h a v e a n y d i r e c t i n t e r e s t i n t h i s A g r e e m e n t , , : o r o b t a i n a n y p r e s e n t o r
a n t i c i p a t e d m a t e r i a l b e n e f i t a r i s i n g t h e r e f r p m .
3 . 2 8 E q u a l O p p o r t u n i t y E m p l o ' ) ; m e n t . C o n t r a c t o r r e p r ~ $ ; ~ n t s t h a t i t i s a n
e q u a l o p p o r t u n i t y e m p l o y e r a n d , w ) t s h a l l n o t ' < i d i s . c ~ i m i l ' l a t e a g a i n s t � ~ o y e m p l o y e e o r
a p p l i c a n t f o r e m p l o y m e n t b e c a u ~ ' o t t i . a c e , r e l i g i o r \ ~ f 1 ' 6 o l o r , n a t i o n a l o r i g i n , a n c e s t r y , s e x
o r a g e . S u c h n o n - d i s c r i m i n a t i o n ~ h i i f l f r i A c l u d e , b u t n o t b e l i m i t e d t o , a l l a c t i v i t i e s r e l a t e d
t o i n i t i a l e m p l o y m e n t , u p g r a d i n g , d e m o t i o n , t r a n s f e r , ; r e c r u i t m e n t o r r e c r u i t m e n t
a d v e r t i s i n g , l a y o f f o r t e r m i n a t i o n . C o n t r a c t o r s h c ; l U a l s o c o m p l y w i t h a l l r e l e v a n t p r o v i -
s i o n s o f R C S A F E ' s � ~ i s ~ v a n t a g e d B u s i n e s s E : h t e r p r i s e p r o g r a m , A f f i r m a t i v e A c t i o n
P l a n o r o t h e r r e l a t ~ ~ r R c S A F U ! � " p r o g r a m s , : : o r g u i t l e l i n e s ' : ; ~ u r r e n t l y i n e f f e c t o r h e r e i n a f t e r
e n a c t e d . � � '
. , ~ . 2 9 S u b c o n t r a c t i r l ~ ' ; C o n t r a c t o r s h a l l n o t s u b c o n t r a c t a n y p o r t i o n o f t h e
w o r k o r ~ e r v f e e s r e i ~ ; ~ i r e d b y t f f l l s A g r e e m e n t , e x c e p t a s e x p r e s s l y s t a t e d h e r e i n ; w i t h o u t
p r i o r w ~ l t t e n a p p r o v ~ l p f R C ; < S A F E . S u b c o n t r a c t s , i f a n y , s h a l l c o n t a i n a p r o v i s i o n
m a k i n g : t h e m s u b j e c t t o ' ~ f f p r o v i s i o , n s s t i p u l a t e d i n t h i s A g r e e m e n t .
3 : : 3 0 P r e v a i l i n g W a g e S > B y i t s e x e c u t i o n o f t h i s A g r e e m e n t , C o n t r a c t o r
c e r t i f i e d t h a t i t i ~ a w a r e o f t h e r e q u i r e m e n t s o f C a l i f o r n i a L a b o r C o d e S e c t i o n s 1 7 2 0 e t
~ a n d 1 7 7 0 e t s e q . , a s w e l l a s C a l i f o r n i a C o d e o f R e g u l a t i o n s , T i t l e 8 , S e c t i o n 1 6 0 0 0
e t ~ ( " P r e v a i l i n g W a g e l a w s " ) , w h i c h r e q u i r e t h e p a y m e n t o f p r e v a i l i n g w a g e r a t e s
a n d t h e p e r f o r m a n c e O f o t h e r r e q u i r e m e n t s o n c e r t a i n " p u b l i c w o r k s " a n d " m a i n t e n a n c e "
p r o j e c t s . S i n c e t h e S e r v i c e s a r e b e i n g p e r f o r m e d a s p a r t o f a n a p p l i c a b l e " p u b l i c w o r k s "
o r " m a i n t e n a n c e " p r o j e c t , a s d e f i n e d b y t h e P r e v a i l i n g W a g e L a w s , a n d s i n c e t h e t o t a l
c o m p e n s a t i o n i s $ 1 , 0 0 0 o r m o r e , C o n t r a c t o r a g r e e s t o f u l l y c o m p l y w i t h s u c h P r e v a i l i n g
W a g e L a w s . R C S A F E h a s a v a i l a b l e , a t t h e o f f i c e s o f R C S A F E , a c o p y o f t h e
p r e v a i l i n g r a t e o f p e r d i e m w a g e s i n e f f e c t a t t h e c o m m e n c e m e n t o f t h i s A g r e e m e n t .
C o n t r a c t o r s h a l l m a k e c o p i e s o f t h e p r e v a i l i n g r a t e s o f p e r d i e m w a g e s f o r e a c h c r a f t ,
c l a s s i f i c a t i o n o r t y p e o f w o r k e r n e e d e d t o e x e c u t e t h e S e r v i c e s a v a i l a b l e t o i n t e r e s t e d
p a r t i e s u p o n r e q u e s t , a n d s h a l l p o s t c o p i e s a t t h e C o n t r a c t o r ' s p r i n c i p a l p l a c e o f
" b u s i n e s s a n d a t t h e p r o j e c t s i t e . C o n t r a c t o r s h a l l d e f e n d , i n d e m n i f y a n d h o l d R C T C , R C
3 9 7
SAFE and their elected officials, officers, employees and agents free and harmless from
any claims, liabilities, costs, penalties or interest arising out of any failure or alleged •
failure to comply with the Prevailing Wage Laws.
3.31 Payroll Records. The Contractor's attention is directed to the
following provisions of Labor Code Section 1776. The Contractor shall be responsible
for the compliance with these provisions by his subcontractors.
3.31.1 Each Contractor and subcontractor shall keep an accurate
payroll record, showing the name, address, social security number, work classification,
straight time and overtime hours worked each day and week, and the actual per diem
wages paid to each journeyman, apprentice, worker, or other employee employed by
him or her in connection with the public work.
3.31.2 The payroll records enumerated under this Section shall be
certified and shall be available for inspection at all reasonable hours at the principal
office of the Contractor on the following basis:
(A) A certified copy of an employee's payroll records shall
be made available for inspection or furnished to such employee or his or her authorized
representative on request.
· (B) A certified copy of all payroll records enumerated in •
this section shall be made available for inspection or furnished upon req'uest to RC
SAFE, the Division of Labor Standards Enforcement and the Division of Apprenticeship
Standards of the Department of Industrial Relation.
(C) A certified copy of all payroll records enumerated in
subdivision (a) shall be made available upon request to the public for inspection or
copies thereof made; provided, however, that a request by the public shall be made
through either the RC SAFE, the Division of Apprenticeship Standards or the Division of
Labor Standards Enforcement. If the requested payroll records have not been provided
pursuant to this Section, the requesting party shall, prior to being provided the records,
reimburse the costs of preparation by the Contractor, subcontractor and the entity
through which the request was made. The public shall not be given access to such
records at the principal office of the Contractor.
3.31.3 The certified payroll records shall be on forms provided by
the Division of Labor Standards Enforcement, those provided by RC SAFE, or shall
contain the same information as the forms provided by the division.
3.31.4 Any copy of records made available for inspection as copies
and furnished upon request to the public or RC SAFE, the Division of Apprenticeship
Standards or the Division of Labor Standards Enforcement shall be marked or
obliterated in such a manner as to prevent disclosure of an individual's name, address •
398
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a n d s o c i a l s e c u r i t y n u m b e r . T h e n a m e a n d a d d r e s s o f t h e C o n t r a c t o r s h a l l n o t b e
m a r k e d o r o b l i t e r a t e d .
3 . 3 1 . 5 1 n t h e e v e n t o f n o 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 t h i s
S e c t i o n , t h e C o n t r a c t o r s h a l l h a v e t e n d a y s i n w h i c h t o c o m p l y s u b s e q u e n t t o r e c e i p t o f
w r i t t e n n o t i c e s p e c i f y i n g i n w h a t r e s p e c t s s u c h C o n t r a c t o r m u s t c o m p l y w i t h t h i s
S e c t i o n . S h o u l d n o n c o m p l i a n c e s t i l l b e e v i d e n t a f t e r s u c h 1 0 - d a y p e r i o d , t h e C o n t r a c t o r
s h a l l , a s a p e n a l t y t o t h e S t a t e o r R C S A F E , f o r f e i t O n e H u n d r e d D o l l a r s ( $ 1 0 0 ) f o r e a c h
c a l e n d a r d a y , o r p o r t i o n t h e r e o f , f o r e a c h w o r k e r , u n t i l s t r i c t c o m p l i a n c e i s e f f e c t u a t e d .
U p o n t h e r e q u e s t o f t h e D i v i s i o n o f A p p r e n t i c e s h i p S t a n d a r d s o r t h e D i v i s i o n o f L a b o r
S t a n d a r d s E n f o r c e m e n t , s u c h p e n a l t i e s s h a l l b e w i t h h e l d f r o m p r o g r e s s p a y m e n t s t h e n
d u e .
3 . 3 1 . 6 T h e p e n a l t i e s s p e c i f i e d i n s u b d i v i s i o n ( g ) o f L a b o r C o d e
S e c t i o n 1 7 7 6 f o r n o n 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 s a i d S e c t i o n 1 7 7 6 m a y b e
d e d u c t e d f r o m a n y m o n i e s d u e o r w h i c h m a y b e c o m e d u e t o t h e C o n t r a c t o r .
3 . 3 1 . 7 T h e C o n t r a c t o r a n d e a c h s u b c o n t r a c t o r s h a l l p r e s e r v e t h e i r
p a y r o l l r e c o r d s f o r a p e r i o d o f t h r e e y e a r s f r o m t h e d a t e o f c o m p l e t i o n o f t h e C o n t r a c t .
- - ~ ~ ~ : ~ : k S - , ~ ~ ~ t ~ ~ j ~ J ~ :
3 , 3 2 E m p l o y m e n t o f 7 $ ; @ p r e n t i c e s . T l j ~ ~ . A g r e e m e n t s h a l l n o t p r e v e n t t h e
e m p l o y m e n t o f p r o p e r l y i n d e n t u r e d 1 : a p p r e n t j p ~ s i n a c ~ Q f ~ . ~ n c e w i t h t h e C a l i f o r n i a L a b o r
C o d e , a n d n o e m p l o y e r o r l a b o r � u n i o n ~ h a l l r e f u s e t o . . � a c c e p t o t h e r w i s e q u a l i f i e d
e m p l o y e e s a s i n d e n t u r e d a p p r e n t i c e s o n t h e w o r � : t ; R e r f o r m e d h e r e u n d e r s o l e l y o n t h e
g r o u n d o f r a c e , c r e e d , n a t i o n a l ~ r i g i n , a r T ~ e s t ~ � ~ # ; o l 6 r o r ~ e x . � E v e ~ q u a l i f i e d a p p r e n t i c e
s h a l l b e p a i d t h e s t a n d a r d w a g ~ , p a i d t o a p p r $ n l i c e s u n d e r t h e r e g u l a t i o n s o f t h e c r a f t o r
t r a d e i n w h i c h h e o r s h e i s e m p l ( ) y e d a n d s h ~ l l b e e m p l o y e d o n l y i n t h e c r a f t o r t r a d e t o
w h i c h h e o r s h e i s r e g i s t e r e d . . � � �
I f C a l i f o r n i a L a b . o r C o d ~ ' S ~ s : ; t i 6 n 1 7 7 7 . 5 a p p l i e s t o t h e S e r v i c e s ,
C o n t r a c t o r a n d a n y s u b c o n t f a ( f t o r h e r e u n d e r w h o e m p l o y s w o r k e r s i n a n y
a p p r e n t i c e a b l e c r a f t o r t r a d e s h a l l a p p l y t o t h e j o i n t a p p r e n t i c e s h i p c o u n c i l a d m i n i s t e r i n g
a p p l i c a b l e s t a n d a r d s f o r a c e r t i f i c a t e a p p r o v i n g C o n t r a c t o r o r a n y s u b - C o n t r a c t o r f o r t h e
e m p l o y m e n t a n d t r a i n i n g o f a p p r e n t i c e s . U p o n i s s u a n c e o f t h i s c e r t i f i c a t e , C o n t r a c t o r
a n d a n y s u b - C o n t r a c t o r s h a l l e m p l o y t h e n u m b e r o f a p p r e n t i c e s p r o v i d e d f o r t h e r e i n , a s
w e l l a s c o n t r i b u t e f o t h e f u n d t o a d m i n i s t e r t h e a p p r e n t i c e s h i p p r o g r a m i n e a c h c r a f t o r
t r a d e i n t h e a r e a o f t h e w o r k h e r e u n d e r .
T h e p a r t i e s e x p r e s s l y u n d e r s t a n d t h a t t h e r e s p o n s i b i l i t y f o r c o m p l i a n c e
w i t h p r o v i s i o n s o f t h i s S e c t i o n a n d w i t h S e c t i o n s 1 7 7 7 . 5 , 1 7 7 7 . 6 a n d 1 7 7 7 . 7 o f t h e
C a l i f o r n i a L a b o r C o d e i n r e g a r d t o a l l a p p r e n t i c e a b l e o c c u p a t i o n s l i e s w i t h C o n t r a c t o r .
3 . 3 3 N o W a i v e r . F a i l u r e o f R C S A F E t o i n s i s t o n a n y o n e o c c a s i o n u p o n
s t r i c t c o m p l i a n c e w i t h a n y o f t h e t e r m s , c o v e n a n t s o r c o n d i t i o n s h e r e o f s h a l l n o t b e
d e e m e d a w a i v e r o f s u c h t e r m , c o v e n a n t o r c o n d i t i o n , n o r s h a l l a n y w a i v e r o r
r e l i n q u i s h m e n t o f a n y r i g h t s o r p o w e r s h e r e u n d e r a t a n y o n e t i m e o r m o r e t i m e s b e
3 9 9
deemed a waiver or relinquishment of such other right or power at any other time or •
times.
3.34 Eight-Hour Law. Pursuant to the provisions of the California Labor
Code, eight hours. of labor shall constitute a legal day's work, and the time of service of
any worker employed on the work shall be limited and restricted to eight hours during
any one calendar day, and forty hours in any one calendar week, except when payment
for overtime is made at not less than one and one-half the basic rate for all hours
worked in excess of eight hours per day ("Eight-Hour Law"), unless Contractor or the
Services are not subject to the Eight-Hour Law. Contrac~pr shall forfeit to RC SAFE as
a penalty, $50.00 for each worker employed in the executil:in of this Agreement by him,
or by any sub-Contractor under him, for each calendar day during which such workman
is required or permitted to work more than eight houh~ in any calendar day and forty
hours in any one calendar week without such cpmpensatiortfor overtime violation of the
provisions of the California Labor Code, 4nless Contractor' .pr the Services are not
subject to the Eight-Hour Law.
~L:-~"·--
3.35 Subpoenas or Court al!ders. , Should CCJ' receive a
subpoena or court order related. to this Ag'reementXftthe Service r the Project,
Contractor shall immediately pro . . w~itten notice1l~;:~he subpoena or court order to RC
SAFE. Contractor shall not respo :t6&~ft~Y such sutipbena or court order until notice to
RC SAFE is provided as require~.~~herein;'t and shall <cooperate with RC SAFE in
responding to the subpoena or court 'Order. ':;
3.36;; ~ih/ival. All rightsl;a:F"Id ~t:>fiilgaticills hereunder that by their nature
are to continue aftar'~ny expiration or terrrli.r~tion of this Agreement, including, but not
limited to, the indemnification artd confidentliali,ty obligations, and the obligations related
to receipt qf:tS'Ubpoenas orcou'f:t~{ders, shall SUrvive any such expiration or termination.
·, ~ .. :.".',}:-·' .. v,
3.37 No Third ~arty Ben~fitiaries. There are no intended third party
beneficiaries of any right or obligation assumed by the Parties.
3.:38 Labor Certificatidn. By its signature hereunder, Contractor certifies
that it is aware:;qf the provisions of Section 3700 of the California Labor Code which
require every employer to be· Insured against liability for Workers' Compensation or to
undertake self-insura·nce in accordance with the provisions of that Code, and agrees to
comply with such provisions before commencing the performance of the Services.
3.39 Counterparts. This Agreement may be signed in counterparts,
each of which shall constitute an original.
3.40 Incorporation of Recitals. The recitals set forth above are true and
correct and are incorporated into this Agreement as though fully set forth herein.
3.41 Conflicting Provisions. In the event that provisions of any attached
•
exhibits conflict in any way with the provisions set forth in this Agreement, the language, •
400
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t e r m s a n d c o n d i t i o n s c o n t a i n e d i n t h i s A g r e e m e n t s h a l l c o n t r o l t h e a c t i o n s a n d
o b l i g a t i o n s o f t h e P a r t i e s a n d t h e i n t e r p r e t a t i o n o f t h e P a r t i e s ' u n d e r s t a n d i n g c o n c e r n i n g
t h e p e r f o r m a n c e o f t h e S e r v i c e s .
3 . 4 2 H e a d i n g s . A r t i c l e a n d S e c t i o n H e a d i n g s , p a r a g r a p h c a p t i o n s o r
m a r g i n a l h e a d i n g s c o n t a i n e d i n t h i s A g r e e m e n t a r e f o r c o n v e n i e n c e o n l y a n d s h a l l h a v e
n o e f f e c t i n t h e c o n s t r u c t i o n o r i n t e r p r e t a t i o n o f a n y p r o v i s i o n h e r e i n .
3 . 4 3 A s s i g n m e n t o r T r a n s f e r . C o n s u l t a n t s h a l l n o t a s s i g n , h y p o t h e c a t e ,
o r t r a n s f e r , e i t h e r d i r e c t l y o r b y o p e r a t i o n o f l a w , t h i s A g r ~ e m e n t o r a n y i n t e r e s t h e r e i n ,
w i t h o u t t h e p r i o r w r i t t e n c o n s e n t o f t h e R C S A F E . . A n y a t t e m p t t o d o s o s h a l l b e n u l l
a n d v o i d , a n d a n y a s s i g n e e s , h y p o t h e c a t e s o r t r a n s f e r e e s s h a l l a c q u i r e n o r i g h t o r
i n t e r e s t b y r e a s o n o f s u c h a t t e m p t e d a s s i g n m e n t , h y p > o t h e c a t i o n o r t r a n s f e r .
3 . 4 4 A u t h o r i t y t o E n t e r A g r e e m e n t . C o n s u t t ~ n t h a s a l l r e q u i s i t e p o w e r
a n d a u t h o r i t y t o c o n d u c t i t s b u s i n e s s 1 , f i ~ O d 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 � t h e
A g r e e m e n t . E a c h P a r t y w a r r a n t s t h a t t h e ' � i n d i v i d u a l s w h o h a v e s i g q e d t h i s A g r e e m e n t
h a v e t h e l e g a l p o w e r , r i g h t , a n d a u t h o r i t y < ~ b m a k e t h i s A g r e e m e n t . a n d b i n d e a c h
r e s p e c t i v e P a r t y . � " '
4 0 1
SIGNATURE PAGE
TO •
RIVERSIDE COUNTY SERVICE AUTHORITY FOR FREEWAY EMERGENCIES
AGREEMENT FOR CALL BOX SERVICES
WITH CASE SYSTEMS INC
IN WITNESS WHEREOF, this Agreement was executed on the date first written
above.
RIVERSIDE COUNTY
TRANSPORTATION COMMISSION
ACTING AS THE RIVERSIDE
COUNTY SERVICE
AUTHORITY FOR FREEWAY
EMERGENCIES
By: ------------'-·'":-:-f!z:c
Karen S. Spiegel, Chair
Approved as to Form:
By:
Best Best & Krieger LLP
Counsel to the Riverside
County Service Authority for
Freeway Emergencies
402
CASE SYSTEMS INC
By:
Signature
Name ·•·
Title
Attest:
By:. _________ _
Its: Secretary
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E x h i b i t " A "
S c o p e o f S e r v i c e s
[ A t t a c h e d b e h i n d t h i s p a g e ] .
4 0 3
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S c o p e o f S e r v i c e s
T h e R C S A F E m o t o r i s t a i d ( S A F E ) c a l l b o x s y s t e m r e q u i r e s e x t e n s i v e y e a r - r o u n d m a i n t e n a n c e ,
r e p a i r s , a n d o t h e r r e l a t e d f i e l d w o r k t o e n s u r e t h e p r o p e r f u n c t i o n i n g a n d a p p e a r a n c e o f t h e c a l l
b o x s y s t e m . R o u t i n e m a i n t e n a n c e i s c o n d u c t e d m o n t h l y b u t s o m e r e p a i r s m a y r e q u i r e
i m m e d i a t e a t t e n t i o n d e p e n d i n g o n t h e n a t u r e o f t h e d a m a g e s t o t h e c a l l b o x . T o e f f i c i e n t l y
m a n a g e t h e m a i n t e n a n c e o f t h e c a l l b o x s y s t e m , a c o m p u t e r i z e d m a i n t e n a n c e s y s t e m i s
r e q u i r e d t o n o t i f y t h e C o n t r a c t o r o f r e p a i r s n e e d e d a n d t o v i e w , t r a c k , a n d r e c o r d e v e r y r e p a i r
m a d e t o t h e c a l l b o x s y s t e m .
I . G E N E R A L C O N D I T I O N S
A . W o r k t o b e D o n e
C o n t r a c t o r s h a l l p e r f o r m a l l w o r k n e c e s s a r y t o m a i n t a i n t h e m o t o r i s t a i d c a l l b o x s y s t e m i n a
s a t i s f a c t o r y m a n n e r a s d e t a i l e d i n t h i s A p p e n d b c ; : A , S t a t e m e n t o f W o r k : ) ~ p t a s k s u n d e r t h i s R F P
s h a l l b e p e r f o r m e d b y a s u b c o n t r a c t o r w i t h o u t t h ~ w r i t t e n c o n s e n t f r o m \ l : S A f E p r o j e c t m a n a g e r .
U n l e s s o t h e r w i s e p r o v i d e d , C o n t r a c t o r s h a l l f u r f l : ( S ' t t a l l m a t e r i e ~ l s , e q u i p m e h t ' " ' t o o l s , l a b o r , a n d
i n c i d e n t a l s n e c e s s a r y t o c o m p l e t e t j ; l e s e r v i c e s f o r t l 1 \ ~ s p e : ~ i f ; l ~ d f l a t f e e . ~ l t f ! w o r k s h a l l b e i n
c o m p l i a n c e w i t h t h e C H P / C a l t r a n s g a t t ~ a o x a n d M o t 6 ~ i $ t A i d : G u i d e l i n e s , C a l t r a ' h s r e q u i r e m e n t s ,
A m e r i c a n w i t h D i s a b i l i t i e s A c t ( A D A ) i r e : ~ u l a t i o n , a s w e l l a S : c : l ) J a p p l i c a b l e f e d e r a l , s t a t e , a n d l o c a l
l a w s . � ~ : ? ; ~ , .
C o n t r a c t o r i s a l e r t e d t o a n d . i s r e s p o n s i b l e . f o r c o m p l y f * ~ . w i t h a l r a p p l i c a b l e p r e v a i l i n g w a g e l a w s
a s f u r t h e r s e t f o r t h i n S , e c t i o n 3 . 2 ; o f t h e R F P , a n d t b e S a m p l e C o n t r a c t F o r m s .
: - � , . ) : ' ' . . ' ' ' � , ~ ~ -
C o n t r a c t o r s h a l l f a c i l i t a t e a t i t s o w h c o s t a l l t r a n s i t i o n t a s k s w i t h t h e p r e v i o u s m a i n t e n a n c e
p r o v i d e r , i f a p p l i c a b l e i n c l u d i n g , b u t n o t l i m i t e d t 6 , t r a n s f e r o f c a l l b o x m a t e r i a l s , s w a p p i n g o f c a l l
b o x d a t a , a n � o t h e : r r e l a t e d t a s k s � . i ; � � o n f ( a c t 0 r i s e x p e c t e d t o s t a r t r e p a i r s i m m e d i a t e l y a t s t a r t o f
c o n t r a c t p e r i o d � w i t h t h e a p p r q p r i a t e s t a f f i n g l e v e l s a n d m a t e r i a l s n e c e s s a r y . I t 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 n t r a c t o r t o ) . a c c o u n t f o r r e p a i r s t h a t m a y n o t b e c o m p l e t e d o r h a v e n o t
b e e n s t a r t e d b y t h e p r e v i o u s m a i n t e n a n c e c o n t r a c t o r . T h e c a l l b o x s y s t e m s h a l l b e h a n d e d o v e r
t o t h e C o n t r a c t o r i n a n " a s - i s " c o n d i t i o n .
B . P l a n s a n d S p e c i f i c a t i o n s
C o n t r a c t o r s h a l l k e e p a t t h e f i e l d o f f i c e a c o p y o f a l l p l a n s a n d s p e c i f i c a t i o n s t o w h i c h S A F E
s h a l l h a v e a c c e s s t o a t � � a l l ' t i m e s . A n y a d d i t i o n a l d o c u m e n t a t i o n o r s p e c i f i c a t i o n s f o r n e w
e q u i p m e n t o r p r o c e s s e s ( i . e ~ t r a n s c e i v e r , T T Y ) s h a l l a l s o b e k e p t b y C o n t r a c t o r i n t h e f i e l d o f f i c e
a n d b e a v a i l a b l e f o r r e v i e w b y t h e S A F E P r o j e c t M a n a g e r o r o t h e r S A F E d e s i g n a t e d
r e p r e s e n t a t i v e ( s ) . A n y c a l l b o x s p e c i f i c a t i o n p l a n s t h e s u c c e s s f u l C o n t r a c t o r d o e s n o t h a v e
s h a l l b e c r e a t e d b y C o n t r a c t o r a s p a r t o f a n a d m i n i s t r a t i v e t a s k a n d m a y b e f a c i l i t a t e d b y t h e
S A F E P r o j e c t M a n a g e r .
C . R i g h t s o f E n t r y a n d P e r m i t s
C o n t r a c t o r s h a l l b e r e s p o n s i b l e f o r o b t a i n i n g a l l r i g h t s o f e n t r y , e n c r o a c h m e n t p e r m i t s , a n d o t h e r
l i c e n s e s o r p e r m i t s r e q u i r e d t o p e r f o r m t h e w o r k h e r e u n d e r .
4 0 4
D. Materials and Workmanship
All materials, parts, and equipment furnished by Contractor shall be of high grade and free from
defects. Enclosures shall not be replaced with others of lesser quality as measured by paint
brightness and coating integrity. Quality of work shall be in accordance with generally accepted
standards. Materials and work quality shall be subject to the SAFE Project Manager's or a
designated representative's approval.
E. labor
Only competent workers shall be employed for tasks under this Agreement. Any person found
by SAFE to be incompetent, disorderly, working under th~.iflfluence of alcohol or controlled
substances, unsafe, or otherwise objectionable shall be removed by Contractor and not re-
employed for services under the contract resulting frorxrthisRFP.
'!;/c-> c ; '''
F. Inspection
All performance (including services, materiai , pplies, and equip~pt furnished or utilized)
shall be subject to inspection and approval by' e SAFE project Mil"nijg~r or a designated
representative. Any SAFE authorized representat · hall haV~'access to th'e field office. ,, ~j:,~' :\ ·,>~~<.t
G. Condition of Site
•
Throughout the term of the Contract:·:Co~t~;~~l'; shall keep>:.call box sites clean and free of
rubbish and debris (including removed pad. material). All unnecessary materials and equipment
shall be removed from the }:;all box site ·itfiitnediateJy or as soori?•as the materials, tools, and •
equipment are no longer needl:!(;t i!;;}\'t
H. Reuse of Parts
Contractor .shall ret;tse part~~Jtfafhave ·b~~f:l darrl·tged or replaced assuming Contractor has
repaired the parts,· ·and enstlres that fund'tl~OaJity;~fs not degraded and the integrity of the
component is not compromised.
I. Reserve Inventory
Contractor is required to maintain a sufficient quantity of call box equipment, parts, and
materials in stock in.their local (within Riverside and/or San Bernardino County) field office to
fulfill the requirements· of this $tatement of Work and its attachments. Replenishing the call box
equipment stock is the sole·responsibility and at the cost of the Contractor. The SAFE
acknowledges any materials purchased by the Contractor that remain unused at the end of the
contract are the property of the Contractor.
J. Storage of Materials
Contractor shall be responsible for storing and maintaining materials in a manner that preserves
their quality and fitness for future use. Contractor shall store call box housings, electronics,
poles, and other appurtenances within their warehouse. Contractor shall relinquish any and all
remaining SAFE owned materials upon termination of the contract.
K. Communication
405
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C o n t r a c t o r s h a l l e n s u r e t h a t t h e l e a d f i e l d t e c h n i c i a n a n d s t a f f h a v e t h e n e c e s s a r y
c o m m u n i c a t i o n d e v i c e s f o r i n t e r a c t i n g e f f i c i e n t l y w i t h t h e S A F E P r o j e c t M a n a g e r , o t h e r
d e s i g n a t e d r e p r e s e n t a t i v e s , a n d p a r t n e r a g e n c i e s . T h e d e v i c e s t o b e p r o v i d e d b y t h e C o n t r a c t o r
m u s t i n c l u d e , b u t a r e n o t l i m i t e d t o , a c e l l p h o n e , o f f i c e p h o n e , f a x m a c h i n e , a n d e m a i l s e r v i c e s
w i t h t h e c a p a b i l i t y t o s e n d a n d r e c e i v e M i c r o s o f t A c c e s s � d a t a b a s e o r e q u i v a l e n t f i l e s .
I I . C A L L B O X M A I N T E N A N C E S Y S T E M
A m a i n t e n a n c e s y s t e m i s c u r r e n t l y i n p l a c e t o m o n i t o r t h e S A F E c a l l b o x s y s t e m w h o s e
i n f o r m a t i o n m a y n e e d t o b e t r a n s f e r r e d t o t h e a w a r d e d C o n t r a c t o r ' s m a i n t e n a n c e s y s t e m . S A F E
i s r e s p o n s i b l e f o r o b t a i n i n g a l l c a l l b o x d a t a a n d p r o v i d i n g i t < t o t h e s u c c e s s f u l C o n t r a c t o r t o b e
i n p u t t e d i n t o t h e i r m a i n t e n a n c e s y s t e m . T h e C o n t r a c t o r s h a U f a c i l i t a t e s u c h t r a n s f e r b y w o r k i n g
w i t h S A F E t o f o r m a t d a t a a c c o r d i n g l y . T h e C o n t r a c t o r w i i J ! n o t b e c o m p e n s a t e d f o r m a i n t e n a n c e
t a s k s u n t i l t h e m a i n t e n a n c e s y s t e m i s f u l l y o p e r a t i o n a f S A F E r e t a i n s o w n e r s h i p o f a l l f i l e s
c o n t a i n i n g c a l l b o x r e l a t e d d a t a p r o v i d e d t o t h e C o n t r a c t o r . A l l s u c h d a t a i n c l u d i n g n e w l y
i n p u t t e d d a t a r e l a t e d t o t h e t a s k s p e r f o r m e d b y . J i j : t ~ s e l e c t e d c o n t r a c t o r s h a l l b e t u r n e d o v e r t o
S A F E a t t h e t e r m i n a t i o n o f t h e c o n t r a c t r e s u l t i n g , f f o m t h i s R F P .
_ . . , . < < '
T h e C o n t r a c t o r ' s m a i n t e n a n c e s y s t e m s h a l l b ~ : ~ ~ < ) d e g e ; i ; l J p a t i b l e w i t h , t h e , S A F E c a l l b o x
c o m m u n i c a t i o n d e v i c e s . I t i s t h e . C o r l t r a c t o r ' s r e ' ~ ~ ~ n s , 1 $ i f ~ y t o u p g r a d e t h e i r m a i n t e n a n c e
s y s t e m i n o r d e r t o p e r f o r m t h e n e c e s s a ' i : y m a i n t e n a n 2 s { : t a ~ k s d e s c r i b e d i n t h i s s e c t i o n w i t h t h e
S A F E c a l l b o x e s a n d t h e o v e r a l l s y s t e m . C G ) Q J r a c t o r s h a i f q o t c h a n g e a n y d e v i c e s i n t h e c a l l
b o x e s t o m a k e t h e m c o m p a t i b l e w i t h t h e i r m a i l i f t ? n a n c e s y s t e r r . A n y c h a n g e s a n d / o r u p g r a d e s
t o t h e m a i n t e n a n c e s y s t e m s h a l l b e a t t h e c o s t o f J h e C o n t r a c t o r . A l l S A F E c a l l b o x e s s h a l l b e
m o n i t o r e d b y a m a i n t e n a n c e : . s y s t e m a n d e a c ; h b o x ~ b a l f : m ( 3 k e o n e . ( 1 ) c a l l e v e r y t h r e e ( 3 ) d a y s
i n t o t h e s y s t e m f o r a d i ~ g n o s t i c c h e c k u p . T h e . C o h t ~ a e t d r " i j b ~ U p r o v i d e e x c e p t i o n r e p o r t s t o t h e
S A F E o n t h e l a s t d a y ~ n d 1 5 1 h o f ; e a c h m o n t h b U t l i n r n g c a l l b o x e s t h a t h a v e f a i l e d t o r e p o r t t o t h e
m a i n t e n a n c e s e r v e r a f t e r t h r e e ( 3 } d a y s a n d t h o s e t h a t h a v e r e p o r t e d a n y t y p e o f m a i n t e n a n c e
a l a r m , t h a t m a y i n c l u d e : c a l F b o x k n o c k e d d o w n , ' h a n d s e t o f f c r a d l e , s o l a r p a n e l f a i l u r e / m i s s i n g ,
c a l l b o x c o m ~ n e n t f a i l u r e , e t c . . : i , .
, , ~ , ~ . ' . " , ~ ' '
I n a d d i t i o n : t h e C o n t r a c t o r m u s t r e c o r d a l l w o r ~ \ ' G r d e r s r e l a t e d t o t h e c a l l b o x s y s t e m a n d o t h e r
g e n e r a l i ~ f o r m a t i o n a n d s p e c i f i c a t i o n s o f e a c h c a l l b o x i n t h e S A F E s y s t e m i n a M i c r o s o f t
A c c e s s � d a t a b a s e o r e q u i v a l e n t . T h e s e w o r k o r d e r s a l o n g w i t h c a l l b o x r e l a t e d g e n e r a l
i n f o r m a t i o n m u s t b e e a s i l y r e t r i e v a b l e a n d e x p o r t a b l e i n t o a n E x c e l � s p r e a d s h e e t o r e q u i v a l e n t
p r o g r a m . A l l i n f o r m a t i o n , i n c l u d i n g h i s t o r i c a l d a t a , w i t h i n t h e e l e c t r o n i c d a t a b a s e s y s t e m m u s t
b e a c c e s s i b l e t o t h e S A F E s t a f f a t a n y t i m e v i a I n t e r n e t c o n n e c t i o n o r e q u i v a l e n t m e a n s
a c c e p t a b l e t o t h e S A F E P r o j e c t M a n a g e r . T h e S A F E s t a f f m o n i t o r s a l l r e p a i r s d o n e e a c h m o n t h ,
t h e t i m e l i n e s s o f s u c h r e p a i r s , a n d t h e n u m b e r o f t i m e s e a c h c a l l b o x c a l l s i n t o t h e m a i n t e n a n c e
s y s t e m v i a t h e m a i n t e n a n c e s y s t e m .
C o n t r a c t o r s h a l l m e e t w i t h S A F E P r o j e c t M a n a g e r i m m e d i a t e l y a f t e r a w a r d o f c o n t r a c t t o f i n a l i z e
t h e n e e d s a n d t h e l a y o u t o f t h e C a l l B o x S y s t e m D a t a b a s e a n d t o d e t e r m i n e a p p r o p r i a t e a c c e s s
f o r S A F E s t a f f .
I l l . C A L L B O X M A I N T E N A N C E T A S K S
T h e C o n t r a c t o r s h a l l p e r f o r m t h e f o l l o w i n g t a s k s a n d a d m i n i s t r a t i v e t a s k s r o u t i n e l y t h r o u g h o u t
t h e t e r m o f t h e c o n t r a c t . A l l s p e c i a l p r o j e c t s w o r k w i l l b e i n i t i a t e d t h r o u g h S A F E - i s s u e d T a s k
O r d e r s a s d e s c r i b e d i n T a s k E . C o m p e n s a t i o n f o r a l l w o r k i s d e s c r i b e d i n A p p e n d i x B , P a y m e n t
4 0 6
Schedule.
Some call box repairs and maintenance tasks listed hereafter may need to be performed
immediately if the repair needed is presenting a potential hazard or if call box components are
broken off and in the way of traffic. Should Contractor need to pick up broken off parts,
Contractor shall also repair that damaged call box at the same time to minimize the number of
trips needed to repair the call box, to the extent reasonable. An inoperable call box shall be
bagged by the Contractor if left unattended to make such trips.
In addition, at the request of SAFE, Contractor shall remove call boxes permanently from the
system (Task F). Such removals may be necessary throughout the term of the contract.
Task A. Corrective Maintenance
Contractor shall perform corrective maintenance as needed on all call boxes. Corrective
maintenance includes all repairs to the call box associated with electronics, transceivers, power
supply (battery and solar panel), and the inte~ce with the cellular system or anything that
affects the proper function of the call box. All~eqt.lipment and materials;used to perform repairs
must be removed immediately after completionof the repair. CorrectiveVrnaintenance requires
that the Contractor be accessible to the call box,<caJI answ~ring center (CAC), CHP, and the
SAFE Project Manager to report no,Qt:,Dperational call~~xest
~> /,, .';?I?; '* 'v
•
Upon notification that a call box is otlt~bf S~ft!ice from· CHP, CAC, SAFE, or the maintenance
computer, Contractor shall determine 'the c~'ese·;,<and if due .to general failure of the call box,
Contractor shall take the necessary action to re'store .it to a good operating condition, including
the repair or replacement of parts, components, and,mountings ~s needed. Activities falling •
within the definition 9fltorrective'll\!laintenanQe,shallbe completed by 4 p.m. on the same day for
events reported by Sif:tiTI. on a w9rkday. For .. events reportetfafter 8 a.m., the call boxes shall
be operable by 4 p.m. op,the followi,og workday;<,:for events reported on a holiday or weekend,
the call box shall be repaireq by 4:ri),r;n. on the :fi~t workday following notification of the event.
Contractor,shaU.:pn;)vide managemeritandfield staff sufficient to perform repairs on call boxes
within the·'~stablished time perie>ds. Should ~he Contractor not be able to meet these specified
timefratnes, Contractor mi.J:st notify tb,e SAFE Project Manager in writing and the reasons why
such repairs shall be delayed,
If Contractor is .. unable to put a call box back in service during the first visit to the box after
notification of its failure to perform, Contractor shall cover and attach a bag with the words "Out
of Service" to the box .and/or mounting pole. Contractor shall remove the bag once the box is
back in service.
Task B. Preventive Maintenance
Contractor shall perform the following preventive maintenance tasks at least two (2) times a
year, at approximately six-month intervals as necessary to keep call boxes clean and
operational. Call boxes with adjunct devices shall be maintained similarly.
Contractor shall report to the SAFE Project Manager any unusual findings made while
performing preventive maintenance. Some preventive needs may be reported by the SAFE
Project Manager or its designated representatives and shall be addressed by Contractor on
preventive maintenance visits.
407
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T h e p r e v e n t i v e m a i n t e n a n c e a c t i v i t i e s f o r a l l c a l l b o x e s , s h a l l i n c l u d e , b u t a r e n o t l i m i t e d t o t h e
f o l l o w i n g t a s k s :
o C l e a n i n g , s a n d i n g o f f r u s t , a n d p a i n t i n g o f c a l l b o x h o u s i n g s a s n e c e s s a r y ;
o C h e c k i n g c a l l b o x h o u s i n g d o o r , m a g n e t , a n d s p r i n g ;
o R e p l a c e m e n t o r a d d i t i o n o f o u t d a t e d , d a m a g e d , o r m i s s i n g i n s t r u c t i o n
p l a c a r d s a n d v a n d a l i s m s t i c k e r s ;
o R e m o v a l o f i t e m s n o t p a r t o f c a l l b o x s u c h a s s t i c k e r s a n d g a r b a g e b a g s ;
o I n s p e c t i o n a n d a n t i - c o r r o s i o n t r e a t m e n t o f e x t e r n a l e l e c t r i c a l c o n n e c t i o n s ;
o O p e r a t i o n a l c h e c k o f c a l l b o x c o n t r o l s a n d s y s t e m o p e r a t i o n a l s e q u e n c e i n c l u d i n g :
" P e r f o r m v o i c e t e s t c a l l s o n e a c h c a l l b o x ;
" C h e c k o u t e r d o o r , h a n d s e t , a n d i l l u m i n a t i o n f o r p r o p e r o p e r a t i o n ; a n d
" C h e c k c e l l u l a r a n t e n n a e a n d c a b l e . .
o M i n o r c l e a n i n g o f t h e s u r r o u n d i n g a r e a q f f h e c a l l b o x ( i n c l u d e s m i n o r p r u n i n g ,
p u l l i n g o f w e e d s a n d d e b r i s r e m o v a l , . ~ p r a ' y i n g f o r i n s e c t s ) ;
o V i s u a l i n s p e c t i o n o f t h e s o l a r p a n e l R f l e h t a t i o n a n d c l e a n i 1 1 9 o f t h e s o l a r p a n e l
c o l l e c t i n g s u r f a c e ; ~ ! < ,
o T e s t i n g o f t h e T T Y s c r e e n f o r b ~ : ~ n t n e s s a n d l e g i b i l i t y a n p , t e s t i n g o f t h e T T Y
k e y b o a r d f o r f u n c t i o n a l i t y a n d k e e p i n g b o t h . p ( E t ~ n . I n a d d i t i d Q , . C o n t r a c t o r s h a l l
m a k e o n e ( 1 ) T T Y t e s t . , G a l l t o t h e C a l l S ~ x A ~ ~ w e r C e n t e r f r o m t W . o ( 2 ) c a l l b o x e s
f o r w h i c h p r e v e n t i v e r n a i n t e ~ a n c e w a s p ~ r t ~ f : ~ ~ d e a c h d a y . . ;
o I n s p e c t i o n a n d r e p a i r o f t h e : p e d ~ : � ~ r i a n p a d ; � : �
o I n s p e c t i o n o f p a t h f o r w e a r ' ~ h d f ~ ~ r : o r v a n d a l i s m ; .
0 M a i n t e n a n c e o f t h e c a l l b o x . m o u n t i r i g p e d e s t a l s o f o t h e r d e v i c e s u s e d f o r m o u n t i n g
t h e c a l l b o x ~ . s o m : r s o u n d w a l l s ; a n d " " . .
o R e p l a c e m e : . i f t : o f f a t J e . ~ / c a l l b o x b l u e . s i g n a n d m i $ s i n g l e t t e r a n d n u m b e r s t i c k e r s .
; ~ : i i t : ~ , ? ~ ' \ . ' f ' '
v : ~ � � v
C o n t r a c t o r s h a l l u s e p r e v e 1 1 t i v e m a l ~ t e n a n c e v i s i t s t o p r o t e c t b o x e s f r o m c o r r o s i o n a n d f a d i n g .
T h e c o l o r o f a l l c a l l b o x e s ~ a l l f a l l Q ~ t w e e n P a l 1 t o n e � y e l l o w n o . F L 1 0 0 a n d P a n t o n e � y e l l o w
n o . F L 1 2 3 . " l i ) r e q u a l t o . C d ~ t r a e i o r s � i a l l r e p l a c e o r � r e p a i r a n y s u c h d e f e c t i v e e n c l o s u r e s i n a
t i m e l y a o d s a t i s f a c t o r y . . m a n n e r : . . C o n t r a c t o r : s h a l l r e c e i v e a p p r o v a l f r o m t h e S A F E P r o j e c t
M a n a g e r : p r i o r t o p r o c e e d i n g w i t h ; r e p l a c e m e n t . ' . .
T a s k C . K n o c k d o w n a n d V a n d a l i s m R e p a i r s
O n c e i n f o r m e d o f d a m a g e , c o n t r a c t o r s h a l l p e r f o r m m a i n t e n a n c e r e p a i r s a n d / o r r e p l a c e m e n t s
r e q u i r e d a s a r e s u l t o f d a m a g e b y c o l l i s i o n s , v a n d a l i s m , o r o t h e r w i l l f u l a c t s , a n d o t h e r s u c h
c a u s e s ( i n c l u d i n g i n s e c t ) n t r u s i o n ) . C o n t r a c t o r m a y b e c o m e a w a r e o f d a m a g e t o c a l l b o x e s i n
v a r i o u s w a y s , i n c l u d i n g r e c e i V i n g n o t i f i c a t i o n f r o m t h e S A F E , t h e C A C , o r t h e C H P , b y o b s e r v i n g
t h e d a m a g e , o r b y r e c e i v i n g a s i g n a l f r o m t h e c a l l b o x ' s b u i l t - i n s e n s o r t h a t i t i s n o l o n g e r
p e r p e n d i c u l a r t o t h e g r o u n d .
1 . K n o c k d o w n R e p a i r s
K n o c k d o w n r e p a i r s s h a l l b e d e f i n e d a s s e r v i c e s c o n d u c t e d b y C o n t r a c t o r t o r e s t o r e c a l l b o x e s
t o f u l l o p e r a b i l i t y a f t e r b e i n g k n o c k e d d o w n b y v e h i c l e c o l l i s i o n o r o t h e r s u c h c a u s e s . C o n t r a c t o r
s h a l l m a k e w o r k o r d e r s a n d o t h e r r e l a t e d i n f o r m a t i o n o n a k n o c k e d d o w n c a l l b o x r e a d i l y
a v a i l a b l e t o S A F E a n d / o r i t s d e s i g n a t e d r e p r e s e n t a t i v e t o a s s i s t i n k n o c k d o w n r e c o v e r y e f f o r t s .
" 2 . V a n d a l i s m R e p a i r s
4 0 8
Vandalism repairs shall be defined as services conducted by Contractor to repair call boxes, •
their sites or their components damaged as a result of vandalism, willful acts, or other such
causes (including insect intrusion). Such tasks shall include but not be limited to: replacing
broken outer door, repairing ripped handset, removing graffiti from signs, and repairing
damaged site material (pads, retaining walls, etc.). Contractor shall salvage any or all parts of
the damaged call box as long as the integrity of the component is not compromised.
If no foundation work is required, Contractor shall have the call box placed back in service by 4
p.m. on the same day for knockdown or vandalism events reported by 9 a.m. on a workday. For
damages reported after 9 a.m., the contractor shall have the call box back in service by 4 p.m.
on the following workday. If foundation work is required, Contractor shall have the call box
placed back in service by 4 p.m. on the second workd~y following notification. For events
reported on a holiday or weekend, the call box shall be ~epatred by 4 p.m. on the first workday if
no foundation work is required or by 4 p.m. on the secbnd workday following the notification of
the event if foundation work is required. 1 ·
In some cases, knockdown and vandalism repatrs·rnay be neededas.'soon as possible because
of a potential hazard. The SAFE Project Man~ger shall notify Contract6r.of such events. Upon
confirmation from Contractor of receipt of P:rnoo!3 or email notificatlbn; the Contractor will
respond within a four-(4) hour period. ;~ ' ;.!';
Task D. Temporary Removal andtiRJin:~tallation ,:;·,· ./~£
1. Temporary Removals
At the request of SAFE, Contr:~ctor shall "remove ca.llc box,es fr6h;l existing locations on an as-
needed basis to acc;o~modate:freeway constr:uction<and other projects that come into conflict
with SAFE call boxe~ .. Whenever possible, SAF€ will give one (1) week advance notice to
Contractor of upcomihgi,,fempora~: removaLhJri. special cases removals may be required
immediately. SAFE retains;pwner$hi~.of call boxes authorized for removal, and Contractor shall
store rernov6:d bQ)(es at their ·tocation and make all removed call boxes available for
reinstallation at any tirne,. Contr:Eictor shall CQordinate the removal, de-activation of long term
tempo~ary removals, antt storage of call boxes as requested by Caltrans or the SAFE Project
Manager;' Contractor shalL also maintain proper inventory documentation. In some cases,
Contractor may need to pick up boxes that are temporarily removed by Caltrans or its contractor
at off site locations. Coordination for pick up shall be the responsibility of the Contractor. Some
call boxes may' be .temporarily removed for several years, depending on the nature of the
construction project, ..
2. Reinstallation
•
Once the construction project is complete and the call box removal is no longer needed,
Contractor shall coordinate reinstallation and deferred installation tasks including permitting, site
approval, installation, and reactivation. Contractor shall get the call box back in service within
three weeks of when Contractor is notified of reinstallation. Some construction projects may
cause the call box to be permanently inaccessible. In such cases, Contractor shall recommend
new locations for the call boxes to SAFE. In the discretion of the SAFE Project Manager, such
locations may also be selected for permanent removal rather than relocation. Should the call
boxes have new sign numbers or phone numbers due to relocation, Contractor shall notify the
SAFE Project Manager, CAC, and CHP immediately and reflect changes in the maintenance •
system.
409
" T a s k E . S p e c i a l P r o j e c t s
"
"
C o n t r a c t o r m a y b e r e q u e s t e d t o c o n d u c t s p e c i a l p r o j e c t s t h r o u g h o u t t h e t e r m o f t h e C o n t r a c t .
S p e c i a l p r o j e c t s m a y i n c l u d e b u t a r e n o t l i m i t e d t o : i n s t a l l a t i o n o f n e w c a l l b o x e s , i n c l u d i n g
s a t e l l i t e c a l l b o x e s , f o r S A F E , p a r t n e r a g e n c i e s , a n d o t h e r e n t i t i e s ; r e m o v a l o r r e l o c a t i o n o f c a l l
b o x e s d u e t o s p e c i a l c i r c u m s t a n c e s ; l a n d l i n e c o n v e r s i o n o f s o m e c a l l b o x e s ; a n d / o r s p e c i a l s i t e
e v a l u a t i o n s r e l a t e d t o t h e c a l l b o x s y s t e m .
A l l t a s k s u n d e r t h i s S e c t i o n w i l l b e i n i t i a t e d t h r o u g h S A F E i s s u e d T a s k O r d e r s . A T a s k O r d e r i s
u t i l i z e d b y t h e p a r t i e s t o e s t a b l i s h , o u t l i n e , a n d a u t h o r i z e . a p a r t i c u l a r j o b o r t a s k . T h e
C o m m i s s i o n ' s p r o j e c t m a n a g e r w i l l i s s u e T a s k O r d e r t o G o n t r a c t o r o n a n a s - n e e d e d b a s i s .
U p o n a r e q u e s t f o r a T a s k O r d e r P r o p o s a l b y t h e d e s i g n a t e d C o m m i s s i o n p r o j e c t m a n a g e r ,
C o n t r a c t o r s h a l l d e v e l o p a p l a n a n d s u b m i t a T a s k O r d e r P r o p o s a l f o r t h e r e q u e s t e d s e r v i c e s .
T h e T a s k O r d e r s h a l l i n c l u d e a t i m e s c h e d u l e , n u m b e r o f l a b o r ; : ; l : i b l ) r s , a n d l a b o r c l a s s i f i c a t i o n ( s )
t o p r o v i d e t h e r e q u e s t e d s e r v i c e s . � � t � �
T a s k F . P e r m a n e n t R e m o v a l s
A t t h e r e q u e s t o f S A F E , C o n t r a c t o r s h a l l r e m o v e c a l l b o p e r m a n e n t l y i . t r o r n t h e s y s t e m i n
a c c o r d a n c e w i t h c u r r e n t C H P / C a l t r a n s C a l l B o x a r i C i ' � M t : l s t A i d G u i d e l i n e ~ f s u c h r e m o v a l s
m a y b e n e c e s s a r y t h r o u g h o u t t h e t e r m o f t h e c o n t r a c t i ~ h e S A F E r e s e r v e s t h ~ r i g h t t o r e d u c e
t h e n u m b e r o f C a l l B o x e s a t a n y t i m e d u r i n g t h e t e r m o f t h i s a g r e e m e n t . C o n t r a c t o r s h a l l b e
r e s p o n s i b l e f o r a l l p e r m a n e n t r e m o v a l a c t i v i t y i n c l u d i n g t h e c a . l ' l c e l l a t i o n o f p h o n e n u m b e r s w i t h
s e r v i c e p r o v i d e r . P e r m a n e n t l y r e m o v e d c a l l b o x e s s h a l l b e r e t u r n e d t o t h e S A F E ' s i n v e n t o r y .
C o n t r a c t o r s h a l l s t o r e t h e r e m o v e d c a l l b o x w i t h e n c l o s u r ~ . p o l e , s i g n s , s o l a r p a n e l , a n d
a s s e m b l i e s a t o n e o r m o r e o f t h e l o c a t i o n s f o r s t o r a g e n o t e d J t l t h i s R F P . T h e s t o r e d m a t e r i a l s
a n d p a r t s m a y t h e n b e u s e d b y C o n t r a c t o r i n p e r f o r m i n g m a i n t e n a n c e t a s k s o n l y f o r t h e c o u n t y
S A F E s y s t e m f r o m w h i c h t h e m a t e r _ i a l s a n d p a r t s o r i g i n a t e d , s u b j e c t t o a c c e p t a n c e b y t h e S A F E
o f t h e c r e d i t p ~ r r e m o v e d s i t e o f f e r e d b y t h e C o n t r a c t o r f o r t h e r i g h t t o s o u s e t h e m .
I V . A D M I N I S T R A T I V E T A S K S
C o n t r a c t o r s h a . l l b e 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 v e t a s k s d e t a i l e d b e l o w i n o r d e r t o p e r f o r m
m a i n t e n a n c e U i s k s . T h e s e a d m i n i s t r a t i v e t a s k s s h a l l b e i n c l u d e d w i t h i n t h e f l a t r a t e f o r
m a i n t e n a n c e p r o p o s e d b y t h e P r o p o s e r .
A . M e e t i n g s , F i e l d S u r v e y s , a n d C o r r e s p o n d e n c e s
C o n t r a c t o r s h a l l b e r e q u i r e d t o a t t e n d m e e t i n g s t h a t r e l a t e t o t h e c a l l b o x s y s t e m a s r e q u e s t e d
b y t h e S A F E P r o j e c t M a n a g e r . C o n t r a c t o r s h a l l r e s p o n d t o w r i t t e n a n d e m a i l i n q u i r i e s r e g a r d i n g
t h e c a l l b o x s y s t e m s u b m i t t e d b y t h e S A F E P r o j e c t M a n a g e r . I n a d d i t i o n , c o o r d i n a t i o n w i t h
S A F E s t a f f m a y b e r e q u i r e d t o a s s i s t i n p r o d u c i n g a m o n t h l y r e p o r t o f c a l l b o x s t a t i s t i c a l
i n f o r m a t i o n . A t t h e r e q u e s t o f t h e S A F E P r o j e c t M a n a g e r , p l a n s , d r a w i n g s , m a p s , a n d o t h e r
d o c u m e n t s s h a l l b e p r o v i d e d b y t h e C o n t r a c t o r t o S A F E a t n o a d d i t i o n a l c o s t t o S A F E .
B . E n c r o a c h m e n t P e r m i t s
E n c r o a c h m e n t p e r m i t s a r e r e q u i r e d p r i o r t o d o i n g w o r k o n C a l t r a n s - o w n e d r i g h t o f w a y .
C o n t r a c t o r s h a l l b e t h e p r i m a r y p o i n t o f c o n t a c t f o r C a l t r a n s p e r m i t i s s u e s r e l a t e d t o t h e s y s t e m
4 1 0
and shall coordinate final field surveys and field review meetings to approve or modify call box •
locations with Caltrans, CHP, and SAFE. Contractor shall prepare and submit encroachment
permit applications to Caltrans, as required. Contractor shall comply with all terms of the
permits, in particular any requirements related to lane closures necessary to complete the tasks
under this RFP.
C. Inventory and Supplies
Contractor shall be responsible for the general upkeep of the contractor provided SAFE call box
storage including tracking inventory of supplies, disposing of obsolete and irreparable parts, and
organizing of components within the storage facility. SAFI;;Joccasionally sells used call box
supplies to other vendors and may request Contractor to q@prdinate sale and delivery of such
supplies. · ··
D. Maintenance System Management
Contractor shall maintain and frequently upd,St~ .f~e call box mair;ttenance system to reflect
changes in site location, site type, etc. Confractbr shall also maintain a~, accurate, up to date
Call Box System Database containing informatioJi}<on the entire call box sy~te.m.
~o· • ~-i~i~; ' • ' "•: <.~i'< :~;:~~i:'·H:if::j_
The Call Box System Database shql · .~lude all infor~a~io · ating to system~emponents. This
information includes, but is not limit ... "'Q§I·controller c8:r&"type, transceiver mod~l and type, and
TTY device type. Fairly recent digitar:~tl'bQ:?<:pictures anttiqomplete latitude and longitude data
shall also be included. >~.. · "•:rc •••·· • .
The Call Box System Gatab~.se shall iq~lude, al;!~· 'Qljnimum; the following maintenance
information on the call.~bo'* syste:~f:,. 'f:., '·'"' \~\
y,'~v',•: \ ' / >,~·c
• Description ofi:~ll correqtfve maintenliifuce visits including the call box sign number,
date .. and time:of:.cwolilt issue date, eJate and time of visit, date and time work
compt~e9 (if diffe(efltfrotrtth~ fi~st visit),?!!lnd description of work performed;
• 'Descriptidn of preve~tive mainteiian~e vi~its including the call box sign number, date
. and time ofvisit,and'description ofwork performed if it deviates from the standard
preventive maintenance requirements;
• Qescription of other site workUncluding, but not limited to the following: knockdowns,
vandalism, sign repair, other repairs, site repairs, CHP reported, removals,
reinstallations, and pad replacements. These entries shall also include the work
issue date and time;(alarm date where applicable), site visit date and time, sign
number, and date and time of completion.
The Contractor shall provide the following reports and data at the interval defined:
• Call Box System Database, monthly
• Call Box Maintenance Exception Report -twice a month, a report of call boxes
that have failed to report into the maintenance system after 3 days, and call
boxes that have reported an alarm event.
• Call Box PM Report, monthly - a report of the call boxes visited that month
including the date and time and description of work completed
•
• Call Box CM Report, monthly -a report of call boxes visited that month •
including the date and time and description of work completed
411
"
"
"
" C a l l B o x K n o c k D o w n R e p o r t - a m o n t h l y r e p o r t s h a l l b e p r o v i d e d b y
C o n t r a c t o r a n d w i l l i n c l u d e a l l w o r k o r d e r s a n d o t h e r r e l a t e d i n f o r m a t i o n o n a
k n o c k e d d o w n c a l l b o x t o a s s i s t i n k n o c k d o w n r e c o v e r y e f f o r t s
C o n t r a c t o r s h a l l f u r n i s h t h e i r o w n d i g i t a l c a m e r a , G P S d e v i c e s , a n d o t h e r d e v i c e s o r e q u i p m e n t
n e c e s s a r y t o p r o v i d e t h e a b o v e i n f o r m a t i o n i n t h e m a i n t e n a n c e s y s t e m . C o n t r a c t o r s h a l l k e e p
t h e m a i n t e n a n c e s y s t e m u p d a t e d a n d c u r r e n t t o p r e v e n t m i s i n f o r m a t i o n .
S o m e s p e c i f i c a t i o n s o f t h e C a l l B o x S y s t e m D a t a b a s e a n d o v e r a l l m a i n t e n a n c e s y s t e m m a y b e
a l t e r e d b y C o n t r a c t o r w i t h p r i o r w r i t t e n a p p r o v a l f r o m t h e S A F E P r o j e c t M a n a g e r . A t t h e r e q u e s t
o f t h e S A F E P r o j e c t M a n a g e r , a d d i t i o n a l i n f o r m a t i o n i n t h e C a l l B o x S y s t e m D a t a b a s e m a y b e
a d d e d o r u n n e c e s s a r y i n f o r m a t i o n d e l e t e d .
A s s t a t e d a b o v e , a l l i n f o r m a t i o n , i n c l u d i n g h i s t o r i c a l d a t a . w i t h i n t h e m a i n t e n a n c e s y s t e m m u s t
b e a c c e s s i b l e t o t h e S A F E s t a f f a t a n y t i m e v i a I n t e r n e t t Q n n e c t i o n o r e q u i v a l e n t m e a n s
a c c e p t a b l e t o t h e S A F E P r o j e c t M a n a g e r . T h e S A F E s t a f f m o n i t 6 ; r s a l l r e p a i r s e a c h m o n t h , t h e
t i m e l i n e s s o f s u c h r e p a i r s , a n d t h e n u m b e r o f c t i m e s e a c h c a l l b o x � B a l l s i n t o t h e m a i n t e n a n c e
s y s t e m v i a t h e m a i n t e n a n c e s y s t e m . � � � : . �
: ~ : : : : : : ~ h : l ~ ~ ~ : : : h e p r i c i n g s h e e t U p P a t e d a n d s u b m t t 1 t : m o s t u p - t o - d a t e p r i c i n g s h e e t o n
a q u a r t e r l y b a s i s t o R C S A F E , S B S A i f l : E , a f : l ~ ' t h e C a l l B o x J ~ ~ c o v e r y S e r v i c e s c o n s u l t a n t . I n
a d d i t i o n , e a c h t i m e t h e p r i c i n g s h e e t i s u p d a h : ~ d � t n e m a t e r i a l ' S a n d e q u i p m e n t l i s t e d o n t h e
t e c h n i c i a n ' s w o r k o r d e r m l j s t b e s u b m i t t e d v v i t h t t l ~ � m o n t h l y i n v o i c i n g a n d s h o u l d b e u p d a t e d
a c c o r d i n g l y . T h e r e f o r e , a W ; f l l J i l t ~ r i a l s a n d e q u i p m e n t l i s t e d o n t h e w f . i ) r k o r d e r s s h o u l d h a v e a
c o r r e s p o n d i n g i t e m o o t h e C o s t ' S u m m a r y S h e e t / P t : i G i n g S h e e t .
< ? : ~ / " � . ' f : ' . ' . ' ; ~ � ~ , : : ~ '
C o n t r a c t o r i s r e s p o n s i b l e f o r w o r k i n g , c o l l a b o r a t i v e l y w i t h t h e C a l l B o x R e c o v e r y S e r v i c e s
c o n s u l t a n t a n d t o r e s p o n d " t o t h a t c o n ~ u 1 t a n t ' s i n q t i l t ; i e s w i t h i n 7 2 h o u r s i n o r d e r t o f a c i l i t a t e t h e
t i m e l y c o s t r e c o v e r y o f d a m a g e d c a l l b o x e s : .
E n d � o f S c o p e o f S e r v i c e s
4 1 2
Exhibit "8"
Schedule of Services
L_ TO BE INSERTED__]
Exhibit "C"
Compensation
L_ TO BE INSERlED.:_j
413
•
•
•
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A G E N D A I T E M 1 4 "
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I
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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 p r i l 2 2 , 2 0 1 3
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
J i l l i a n G u i z a d o , S t a f f A n a l y s t F R O M : B r i a n C u n a n a n , C o m m u t e r a n d M o t o r i s t A s s i s t a n c e 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
M e m o r a n d u m o f U n d e r s t a n d i n g w i t h S o u t h e r n C a l i f o r n i a
S U B J E C T : A s s o c i a t i o n o f G o v e r n m e n t s f o r t h e R i s i n g S t a r s i n T r a n s i t
I n t e r n s h i p P r o g r a m
S T A F F R E C O M M E N D A T J 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 M e m o r a n d u m o f U n d e r s t a n d i n g ( M O U ) N o . 1 3 - 2 5 - 1 0 6 - 0 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 S o u t h e r n C a l i f o r n i a A s s o c i a t i o n o f G o v e r n m e n t s
( S C A G ) f o r t h e R i s i n g S t a r s i n T r a n s i t - I n t e r n s h i p s f o r U n i v e r s i t y S t u d e n t s
2 )
3 )
p r o g r a m ;
A u t h o r i z e t h e E x e c u t i v e D i r e c t o r , p u r s u a n t t o l e g a l c o u n s e l r e v i e w , t o
e x e c u t e t h e M O U 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
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 / O N :
I n a n e f f o r t t o p r o v i d e p r o f e s s i o n a l d e v e l o p m e n t o p p o r t u n 1 t 1 e s f o r l o c a l u n i v e r s i t y
s t u d e n t s , s t a f f a p p l i e d f o r a n d w a s a w a r d e d a C a l t r a n s T r a n s p o r t a t i o n P l a n n i n g
G r a n t . T h i s i s t h e t h i r d a w a r d f o r w h a t h a s p r o v e n t o b e a s u c c e s s f u l p r o g r a m t o
r e c r u i t , t r a i n , a n d h i r e e x c e p t i o n a l l o c a l t a l e n t . T h e p r o j e c t i s e n t i t l e d , R i s i n g S t a r s
i n T r a n s i t - I n t e r n s h i p s f o r U n i v e r s i t y S t u d e n t s , u n d e r t h e T r a n s i t P r o f e s s i o n a l
D e v e l o p m e n t c a t e g o r y o f t h e F e d e r a l T r a n s i t A d m i n i s t r a t i o n ( F T A ) 5 3 1 3 ( b )
p r o g r a m . T h e g r a n t i s f o r $ 5 0 , 0 0 0 w i t h a l o c a l i n - k i n d m a t c h o f $ 1 0 , 0 0 0
c o m p r i s e d o f s t a f f s u p e r v i s i o n t i m e . T h e i n t e r n s h i p p r o g r a m w i l l i n c l u d e
r e c r u i t m e n t / s e l e c t i o n o f t h e s t u d e n t i n t e r n s , c o m p r e h e n s i v e o v e r v i e w o f s p e c i f i c
t r a n s p o r t a t i o n p l a n n i n g f u n c t i o n s , l u n c h b a g s e s s i o n s w i t h s e n i o r m a n a g e m e n t , a n d
a n e v a l u a t i o n o f t h e p r o g r a m . T h i s p r o v i d e s a n o p p o r t u n i t y t o e x p o s e l o c a l
s t u d e n t s t o c a r e e r s i n t r a n s p o r t a t i o n p l a n n i n g . T h e g r a n t f u n d s w i l l b e s p e n t
d i r e c t l y o n i n t e r n c o m p e n s a t i o n a n d t r a i n i n g . T h e i n - k i n d m a t c h w i l l b e c a l c u l a t e d
b y t h e s t a f f t i m e n e e d e d t o r e c r u i t , t r a i n , a n d m e n t o r t h e s t u d e n t s .
A g e n d a I t e m � 1 4
4 1 4
DISCUSSION:
SCAG is the administering agency for the planning grant project and the
Commission will enter into MOU No. 13-25-106-00 with SCAG for the grant funds.
The program is scheduled to begin July 2013 and continue for a two-year period.
Per the MOU scope of work, staff intends to hire interns for two departments,
Multimodal Services and Procurement.
The Multimodal Services intern will complete a variety of tasks, including but not
limited to preparing regular operational status reports for Freeway Service Patrol,
assisting with the annual Article 3 call for projects, performing various levels of
quality control testing of the Inland Empire 511 system, monitoring the
performance of call box call operators, and researching the implementation of the
Caltrans park and ride assessment tool.
The Procurement intern will perform tasks relating to data entry, running financial
and procurement reports and conducting analyses, reconciling insurance and
contract documents, researching Small Business Enterprise and Disadvantaged
Business Enterprise events, reviewing and organizing documents, and responding to
public inquiries.
•
Upon the completion of this two-year grant, the interns will have completed •
important administrative tasks, developed valuable tools, and helped to conduct
critical analyses of the various projects under the Commuter and Motorist
Assistance and Procurement departments. This internship has the potential to lead
the Commission to retain well-trained individuals should the recruitment opportunity
anse.
Financial Information
In Fiscal Year Budget: Yes Year: FY 2013/14 Amount: $25,000
N/A FY 2014/15 $25,000
Source of Funds: IFTA Budget Adjustment: I No
N/A
GL/Project Accounting No.: P002401 103 25 41410 $50,000
Fiscal Procedures Approved: ~~ I Date: I 04/13/13
Attachment:
1) MOU No. 13-25-106-00
2) Scope of Work
3) Exhibit B -Project Schedule and Funding Chart
Agenda Item 14
415
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A T T A C H M E N T 1
M O U N o M - 0 0 5 - 1 3
P r o j e c t J O W P N o . 1 4 5 . S C G 0 2 5 6 6 . 0 l
M E M O R A N D U M O F U N D E R S T A N D I N G
N o . M - 0 0 5 - 1 3
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
T H E S O U T H E R N C A L I F O R N I A A S S O C I A T I O N O F G O V E R N M E N T S
F O R T H E R I S I N G S T A R S P R O G R A M
( P r o j e c t l O W P # 1 4 5 . S C G 0 2 5 6 6 . 0 1 )
T h i s M e m o r a n d u m o f U n d e r s t a n d i n g ( " M O U " ) i s b y a n d b e t w e e n t h e S o u t h e r n C a l i f o r n i a
A s s o c i a t i o n o f G o v e r n m e n t s ( " S C A G ' ' ) 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 u b s e q u e n t l y h e r e i n r e f e r r e d t o a s t h e " S u b - R e c i p i e n t . " f o r t h e R i s i n g S t a r s
P r o g r a m , a n d s u b s e q u e n t l y h e r e i n r e f e r r e d t o a s t h e . . P r o j e c t . " S C A G a n d S u b - R e c i p i e n t
m a y b e c o l l e c t i v e l y r e f e r r e d t o h e r e i n a s � ' P a r t i e s . "
R E C I T A L S
W H E R E A S , S C A G p r o g r a m m e d t h e t o t a l a m o u n t o f $ 6 0 . 0 0 0 i n t o i t s a p p l i c a b l e O v e r a l l
W o r k P r o g r a m ( O W P ) f o r t h e P r o j e c t , w h i c h i n c l u d e s a F e d e r a l T r a n s i t A d m i n i s t r a t i o n
( ' ' F T A ' ' ) S e c t i o n 5 3 0 4 T r a n s i t P l a n n i n g S t u d e n t I n t e r n s h i p g r a n t f u n d s ( ' ' F e d e r a l G r a n t " )
a w a r d e d b y 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 ' ' ) , i n t h e a m o u n t o f
$ 5 0 , 0 0 0 f o r t h i s P r o j e c t .
W H E R E A S , t h e S u b - R e c i p i e n t s e e k s t o a d m i n i s t e r a n d i m p l e m e n t a n i n t e r n s h i p p r o g r a m
f o r s t u d e n t s a t l o c a l c o l l e g e s a n d u n i v e r s i t i e s w i t h t h e a s s i s t a n c e o f T r a n s i t P r o f e s s i o n a l
D e v e l o p m e n t G r a n t F u n d s t h a t S C A G w i l l r e c e i v e a s p a r t o f t h e F e d e r a l G r a n t ;
W H E R E A S , t h e g o a l o f t h e P r o j e c t i s t o p r o v i d e a n e d u c a t i o n a l r e s o u r c e t o a l l o w l o c a l
s t u d e n t s t o g a i n e x p e r i e n c e i n t r a n s p o r t a t i o n p l a n n i n g ;
W H E R E A S , t h e S u b - R e c i p i e n t w i l l p r o v i d e a L o c a l I n - K i n d M a t c h t o t a l i n g $ 1 0 , 0 0 0 t o
s u p p l e m e n t t h e F e d e r a l G r a n t t h a t S C A G h a s b u d g e t e d f o r t h e P r o j e c t ;
W H E R E A S , p e r f o r m a n c e b y S u b - R e c i p i e n t w i l l b e g i n o n t h e d a t e s i n d i c a t e d h e r e i n a n d
i s p l a n n e d t o c o n t i n u e t h r o u g h J u n e 3 0 , 2 0 1 5 . a n d t h i s M O U s h a l l s u p e r s e d e a n d r e p l a c e
a n y p r e v i o u s a g r e e m e n t s b e t w e e n S C A G a n d S u b - R e c i p i e n t r e l a t e d t o t h e P r o j e c t
d e s c r i b e d h e r e i n ;
W H E R E A S , t h e S u b - R e c i p i e n t s h a l l s e r v e a s l e a d a g e n c y w i t h t h e r e s p o n s i b i l i t y o f
a d m i n i s t e r i n g a n d i m p l e m e n t i n g t h e a f o r e m e n t i o n e d P r o j e c t i n a c c o r d a n c e w i t h t h e
S c o p e o f W o r k , a t t a c h e d h e r e t o a n d s u b s e q u e n t l y h e r e i n r e f e r r e d t o a s " E x h i b i t A " ; a n d
W H E R E A S , a l l o b l i g a t i o n s o f S C A G u n d e r t h i s M O U a r e s u b j e c t t o t h e a v a i l a b i l i t y o f
F e d e r a l G r a n t f u n d s ;
F e b r u a r y 7 . 2 0 1 3
P a g e I
4 1 6
MOU No M-005-!3
Project!OWP No. l..f5.SCG02566.01
NO\V THEREFORE, IT IS MUTUALLY AGREED THAT:
This MOU is comprised of these terms and conditions and any attached Exhibits. and
may be amended only by written agreement between SCAG and the Sub-Recipient.
2. Scope of Work
The Sub-Recipient shall furnish all technical and professional services, including
labor, material. equipment, transportation, supervision, and expertise necessary to
fully and adequately administer and implement the Project as set forth in Exhibit A
3. Term
The Term of this MOU shall begin on the Effective Date of the MOU and continue
until June 30, 2015, hereinafter referred to as the '"Completion Date;' unless
terminated earlier as provided herein. In-Kind Services performed under this MOU
shall commence upon the Effective Date of this MOU.
4. Program Management
•
a. In-Kind Services shall be performed by the Sub-Recipient's staff, including intern(s), •
in accordance with Exhibit A, and the Project Schedule and Funding Chart, attached
hereto and subsequently herein referred to as "Exhibit B.''
b. All work under this MOU shall be coordinated with SCAG and the Sub-Recipient
through the Project Managers.
1) For purposes of this MOU. SCAG designates the following Project
Manager:
Matt Gleason
Associate Regional Planner
(213) 236-1832
::de a son@ scag,_~l!:.:K\!Y.
SCAG reserves the right to change this designation upon written notice to
the Sub-Recipient.
2) For purposes of this MOU, the Sub-Recipient designates the following
individual as its Project Manager:
Febmary 7, 2013
Page2
Sheldon Peterson
Rail Manager
(951) 787-7141
417
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; ; , p e t e r s o n ( g ' n . : J f , Q J g
M O U N o M - 0 0 5 - 1 3
P r o j c c t / O W P N o . 1 4 5 . S C G 0 2 5 6 6 . 0 1
T h e S u b - R e c i p i e n t m a y c h a n g e t h e d e s i g n a t i o n o f i t s P r o j e c t M a n a g e r b y
w r i t t e n n o t i f i c a t i o n t o t h e S C A G P r o j e c t M a n a g e r .
5 . F u n d i n g
a . T h e P a r t i e s a g r e e a n d a c k n o w l e d g e t h a t t h e t o t a l v a l u e o f t h e P r o j e c t i s $ 6 0 , 0 0 0 .
a s f o l l o w s :
F e d e r a l G r a n t F u n d s :
L o c a l I n - K i n d M a t c h C o n t r i b u t i o n :
$ 5 0 , 0 0 0
$ 1 0 , 0 0 0
b . E x c e p t a s e x p r e s s l y p r o v i d e d h e r e i n , S C A G s h a l l c o m m i t t o t h e P r o j e c t u p t o t h e
m a x i m u m a m o u n t o f F I F T Y T H O U S A N D D O L L A R S ( $ 5 0 , 0 0 0 ) d u r i n g t h e t e r m
o f t h i s M O U . S C A G s h a l l o n l y b e o b l i g a t e d t o m a k e a p a y m e n t t o t h e S u b -
R e c i p i e n t f o r w o r k p r o v i d e d p u r s u a n t t o E x h i b i t s A a n d B a s s e t f o r t h u n d e r t h i s
M O U .
c . C o s t r e i m b u r s e m e n t f o r t h e P r o j e c t i s s u b j e c t t o t h e i n c l u s i o n a n d f u n d i n g a g e n c y
a p p r o v a l o f t h i s P r o j e c t i n S C A G ' s O W P f o r e a c h a p p l i c a b l e f i s c a l y e a r . S C A G
r e s e r v e s t h e r i g h t t o t e r m i n a t e t h i s M O U i n a c c o r d a n c e w i t h S e c t i o n 2 1
( T e r m i n a t i o n o f M O U ) a n d / o r t o a m e n d t h i s M O U t o r e f l e c t a n y r e d u c t i o n i n
f u n d s .
6 . I n - K i n d . M a t c h
T h e S u b - R e c i p i e n t s h a l l p r o v i d e T E N T H O U S A N D D O L L A R S ( $ 1 0 . ( > 0 0 ) o f r e q u i r e d
l o c a l , I n - K i n d S e r v i c e s f o r t h e P r o g r a m . i n a c c o r d a n c e w i t h E x h i b i t s A a n d B . T h e S u b -
R e c i p i e n t s h a l l s u b m i t a n I n v o i c e / I n - K i n d M a t c h R e p o r t , a t t a c h e d h e r e t o a n d
s u b s e q u e n t l y h e r e i n r e f e r r e d t o a s " E x h i b i t C , " f o r s e r v i c e s p e r f o n n e d i n s u p p 0 1 1 o f t h e
P r o j e c t , i n a c c o r d a n c e w i t h S e c t i o n 8 ( I n v o i c e s , P r o g r e s s R e p o r t s a n d M a t c h R e p o r t s )
a n d S e c t i o n 9 ( C o s t P r i n c i p l e s ) o f t h i s M O U .
7 . I n d i r e c t C o s t s
I f a p p l i c a b l e , f o r c r e d i t o f i n d i r e c t c o s t s , t h e S u b - R e c i p i e n t s h a l l c o m p l y w i t h a p p l i c a b l e
F e d e r a l < m d S t a t e r e q u i r e m e n t s i n c l u d i n g b u t n o t l i m i t e d t o C a l t r a n s r e g u l a t i o n s a n d
p o l i c i e s . C r e d i t o f i n d i r e c t c o s t s i s c o n t i n g e n t u p o n r e c e i p t b y S C A G o f a c o p y o f a
c u r r e n t i n d i r e c t c o s t p l a n a p p r o v e d b y C a l t r a n s o r a c o g n i z a n t a g e n c y . H o w e v e r , t h e l a s t
a p p r o v e d i n d i r e c t c o s t a l l o c a t i o n p l a n s h a l l r e m a i n i n p l a c e u n t i l e a c h n e w a n n u a l p l a n i s
a p p r o v e d , s o l o n g a s C a l t r a n s p e n n i t s s u c h p r a c t i c e .
8 . I n v o i c e s , P r o g r e s s R e p o r t s a n d M a t c h R e p o r t s
a . I n p e r f o r m i n g I n - K i n d S e r v i c e s . t h e S u b - R e c i p i e n t m a y i n c u r i n - k i n d m a t c h c o s t s
i n a c c o r d a n c e w i t h t h e t e r m s a n d c o n d i t i o n s o f t h i s M O U i n c l u d i n g b u t n o t
F e h r u a r y 7 . 2 0 1 3
P a g e 3
4 1 8
MOU No M-005-!3
ProjectJOWP No. 145.SCG02566.01
limited to Section 9 (Cost Principles) and such costs shall serve as the only costs •
for which the Sub-Recipient has a right to report as In-Kind Services, and shall be
financed by the Sub-Recipient only with local, non-federal funds.
b. At least once per quarter, the Sub-Recipient shal1 invoice SCAG using the invoice
format provided in Exhibit C for eligible Project expenses sought to be
reimbursed for up to, but not to exceed a total of FIFTY THOUSAND DOLLARS
($50,000).
c. All invoices shall be accompanied by a narrative Progress Report. The Progress
Reports shall describe the percentage and status of work completed, as identified
in the Scope of Work. The purpose of the Progress Reports is to allow SCAG to
determine if the Sub-Recipient is completing the activities identified in the Scope
of Work, in accordance with the agreed upon Schedule. SCAG's Project Manager
shall have the right to review Sub-Recipient's charges and progress reports. All
costs associated with the Project shall be identified on the invoice with proper
backup, along with documentation of the match paid by the Sub-Recipient, with
invoices directed to Accounts Payable.
d. Relative to an invoice, the Sub-Recipient shall submit the following using the
sample provided in Exhibit C :
1) An invoice with the following information included, but not limited to; •
Name of Project, Description of Services Provided. Period of the Service
Performed, Consultant Name, Total Cost Incurred, and the foHowing, if
applicable: Actual Hourly Pay Rates, Total Hours Worked, Fringe Benefit
Rate, Fringe Costs;
2) Proof of payment/in-kind services for the local match portion of work .
3) Upon request of SCAG, Sub-Recipient shall provide additional
information or documentation to support the costs contained in the invoice
within thirty (30) calendar days.
e. All costs charged pursuant to this MOU shall be supported by properly executed
payrolls showing labor (wage) rates per hour, copies of time records, including
complete timesheets or time cards signed by the employee/intern and approved by
the supervisor; invoices and vouchers, evidencing in proper detail the nature of
the charges, and other documentation requested by SCAG.
f. Upon request of the SCAG Project Manager, the Sub-Recipient shall submit a
Quarterly Report in the fonnat to be reasonable accepted by SCAG. The
Quarter1y Report shall include, in narrative form, a description of progress toward
completion of tasks related to the Project and a reporting of all costs incurred
regarding the Project. Information regarding the Sub-Recipient's match for the
project shall also be included in the report. •
February 7. 20 13
Page4
419
"
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M O U N o M - 0 0 5 - 1 3
P r o j e n / O W P N o . 1 4 5 . S C G 0 2 5 6 6 . 0 I
g . O n a l l d o c u m e n t s s u b m i t t e d t o S C A G f o r t h e P r o j e c t , i n c l u d i n g I n v o i c e s a n d
Q u w 1 e r l y R e p o r t s , t h e P r o j e c t N u m b e r ( O W P # 1 4 5 . S C G 0 2 5 6 6 . 0 1 ) s h a l l b e
r e f e r e n c e d f r o m t h e E f f e c t i v e D a t e t h r o u g h J u n e 3 0 , 2 0 1 5 .
h . T h e P a r t i e s a c k n o w l e d g e t h a t S C A G ' s f i s c a l y e a r i s f r o m J u l y 1 t o J u n e 3 0 . T h e
S u b - R e c i p i e n t a g r e e s t o s u b m i t p e n d i n g I n v o i c e s / I n - K i n d M a t c h R e p m 1 s t o
S C A G o n o r b e f o r e J u l y 3 1 ' 1 o f e a c h f i s c a l y e a r .
9 . C o s t P r i n c i p l e s
a . T h e S u b - R e c i p i e n t a g r e e s t o c o m p l y w i t h t h e f o l l o w i n g :
1 ) T h e C o n t r a c t C o s t P r i n c i p l e s a n d P r o c e d u r e s , 4 8 C o d e o f F e d e r a l
R e g u l a t i o n s . F e d e r a l A c q u i s i t i o n R e g u l a t i o n s S y s t e m , C h a p t e r 1 , P a r t 3 1 ,
e t s e q . ( O f f i c e o f M a n a g e m e n t a n d B u d g e t C i r c u l a r A - 8 7 , ' ' C o s t P r i n c i p l e s
f o r S t a t e , L o c a l , a n d I n d i a n T r i b a l G o v e r n m e n t s ) , " s h a l l b e u s e d t o
d e t e r m i n e t h e a c c e p t a b i l i t y o f i n d i v i d u a l p r o j e c t c o s t i t e m s ; a n d
2 ) T h e F e d e r a l a d m i n i s t r a t i v e p r o c e d u r e s i n a c c o r d a n c e w i t h 4 9 C o d e o f
F e d e r a l R e g u l a t i o n s , P a r t 1 8 . " U n i f o r m A d m i n i s t r a t i v e R e q u i r e m e n t s f o r
G r a n t s a n d C o o p e r a t i v e A g r e e m e n t s t o S t a t e a n d L o c a l G o v e r n m e n t s . "
b . A n y c o s t s f o r w h i c h t h e S u b - R e c i p i e n t r e c e i v e s r e i m b u r s e m e n t o r c r e d i t t h a t i s
d e t e r m i n e d b y a s u b s e q u e n t a u d i t o r o t h e r r e v i e w b y e i t h e r S C A G , C a l t r a n s o r
o t h e r S t a t e o r F e d e r a l a u t h o r i t i e s t o b e u n a l l o w a b l e u n d e r , b u t n o t l i m i t e d t o .
O M B C i r c u l a r A - 8 7 : 4 8 C F R , C h a p t e r I , P a r t 3 1 : o r 4 9 C F R , P a r t 1 8 , a r e t o b e
r e p a i d b y t h e S u b - R e c i p i e n t w i t h i n t h i r t y ( 3 0 ) c a l e n d a r d a y s o f t h e S u b - R e c i p i e n t
r e c e i v i n g n o t i c e o f a u d i t f i n d i n g s a n d a w r i t t e n d e m a n d f o r r e i m b u r s e m e n t f r o m
S C A G . S h o u l d t h e S u b - R e c i p i e n t f a i l t o r e i m b u r s e u n a l l o w a b l e c o s t s d u e S C A G
w i t h i n t h i r t y ( 3 0 ) c a l e n d a r d a y s o f d e m a n d , o r w i t h i n s u c h o t h e r p e r i o d a s m a y b e
a g r e e d b e t w e e n b o t h p a r t i e s h e r e t o . S C A G i s a u t h o r i z e d t o w i t h h o l d f u t u r e
p a y m e n t s d u e t o t h e S u b - R e c i p i e n t .
c . A l l c o s t s r e p o r t e d b y t h e S u b - R e c i p i e n t i n t h e I n v o i c e / I n - K i n d M a t c h R e p o r t
r e q u i r e d u n d e r t h i s M O U , s h a l l b e s u p p o r t e d b y p r o p e r l y e x e c u t e d p a y r o l l s , t i m e
r e c o r d s , i n v o i c e s . a n d v o u c h e r s , e v i d e n c i n g i n p r o p e r d e t a i l t h e n a t u r e o f t h e
c h a r g e s , a n d s h a l l b e c o s t s a l l o w a b l e u n d e r t h e c o s t p r i n c i p l e s c i t e d a b o v e i n
S e c t i o n 9 ( a ) .
1 0 . M O U C h a n g e s
a . N o a l t e r a t i o n o r d e v i a t i o n o f t h e t e r m s o f t h i s M O U s h a l l b e v a l i d u n l e s s m a d e i n
w r i t i n g a n d p r o p e r l y e x e c u t e d b y b o t h p a r t i e s .
b . S C A G m a y r e q u e s t , a t a n y t i m e , a m e n d m e n t s t o t h i s M O U a n d w i l l n o t i f y t h e
S u b - R e c i p i e n t r e g a r d i n g s u c h c h a n g e s . W i t h i n t e n ( I 0 ) c a l e n d a r d a y s f r o m t h e
F e b m a r y 7 . 2 0 1 3
P a g e 5
4 2 0
MOU No M-005-13
Project/OWP No. 145.SCG02566.Cll
date of the written notice, the Sub-Recipient shall notify SCAG of the impact of •
such changes on the Scope of Work or Project Schedule and Funding Chart. Upon
agreement between the parties as to the required changes, an amendment to this
MOU shall be prepared regarding the same. lf the parties are unable to reach an
agreemenl regarding the changes requested by SCAG. the Patties may terminate
this MOU in accordance with the provisions set forth in Section 21 (a) of this
MOLl.
11. Notices
Any notice or notices required or permitted to be given pursuant to this MOU may be
personally served on the other party by the party giving such notice, or may be served
by certified mail, return receipt requested, to the following addresses:
To SCAG:
To Sub-Recipient:
12. Hold Harmless
Basil Panas
Actino Chief Financial Officer b
Southern California Association of Governments
818 W. 7th Street, 12th Floor
Los Angeles, CA 900 17
Phone: (213) 236-1817
Anne Mayer
Executive Director
Riverside County Transportation Commission
P.O. Box 12008
Riverside, CA 92502
Phone: (951) 787-7141
a. The Sub-Recipient undertakes and agrees to defend, indemnify, and hold harmless
SCA.G and any of its directors, officers, agents, employees. assigns, and
successors in interest from and against all suits and causes of action, claims,
losses, demands and expenses, including, but not limited to, attorney's fees and
cost of litigation, damage or liability of any nature whatsoever, for death or injury
to any person, including the Sub-Recipient employees, interns and agents, or
damage or destruction of any property of either party hereto or of third parties,
arising in any manner by reason of the negligent acts, errors or omissions or
violations of law by the Sub-Recipient or its employees, interns and agents in
connection with its activities under this MOU. The Sub-Recipient further agrees to
reimburse SCAG for claims, demands, costs or liability associated with the
incomplete performance of work contained in Exhibits A and B in the event of
breach or tern1ination of this MOU by the Sub-Recipient or tennination for cause
of this MOU by SCAG.
February 7, 2013
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i v l O U N o M - 0 0 5 - 1 3
P r o j e c t / O W P N o . l 4 5 . S C G 0 2 5 6 6 . ( J J
b . S C A G u n d e r t a k e s a n d a g r e e s t o d e f e n d , 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 S u b -
R e c i p i e n t a n d i t s s u b s i d i a r i e s a n d t h e i r r e s p e c t i v e d i r e c t o r s , o f f i c e r s , a g e n t s ,
e m p l o y e e s , a s s i g n s , a n d s u c c e s s o r s i n i n t e r e s t f r o m a n d a g a i n s t a l l s u i t s a n d
c a u s e s o f a c t i o n , c l a i m s , l o s s e s , d e m a n d s a n d e x p e n s e s , i n c l u d i n g , b u t n o t l i m i t e d
t o , a t t o r n e y ' s f e e s a n d c o s t o f l i t i g a t i o n , d a m a g e o r l i a b i l i t y o f a n y n a t u r e
w h a t s o e v e r , f o r d e a t h o r i n j u r y t o a n y p e r s o n , i n c l u d i n g S C A G ' s e m p l o y e e s a n d
a g e n t s , o r d a m a g e o r d e s t r u c t i o n o f � a n y p r o p e r t y o f e i t h e r p a r t y h e r e t o o r o f t h i r d
p a r t i e s , a r i s i n g i n a n y m a n n e r b y r e a s o n o f t h e n e g l i g e n t a c t s , e r r o r s o r o m i s s i o n s
o r v i o l a t i o n s o f l a w b y S C A G o r i t s e m p l o y e e s a n d a g e n t s i n c o n n e c t i o n w i t h i t s
a c t i v i t i e s u n d e r t h i s M O U .
1 3 . C o p y r i g h t
S u b - R e c i p i e n t s h a l l b e f r e e t o c o p y r i g h t m a t e r i a l d e v e l o p e d u n d e r d e l i v e r a b l e s
i d e n t i f i e d i n E x h i b i t A , p r o v i d e d t h a t S C A G , C a l t r a n s a n d F T A r e s e r v e a r o y a l t y - f r e e ,
n o n e x c l u s i v e a n d i r r e v o c a b l e l i c e n s e t o r e p r o d u c e , p u b l i s h o r o t h e r w i s e u s e , a n d
a u t h o r i z e o t h e r s t o u s e , s u c h m a t e r i a l f o r g o v e r n m e n t p u r p o s e s .
1 4 . R e c o r d s R e t e n t i o n a n d A u d i t s
a . T h e S u b - R e c i p i e n t s h a l l m a i n t a i n a l l s o u r c e d o c u m e n t s , b o o k s a n d r e c o r d s
c o n n e c t e d w i t h t h e P r o j e c t u n d e r t h i s M O U a n d e a c h a n n u a l S C A G O W P f o r a
m i n i m u m o f f o u r ( 4 ) y e a r s f r o m t h e d a t e a u d i t r e s o l u t i o n i s a c h i e v e d f o r e a c h
a n n u a l S C A G O W P . a n d s h a l l m a k e a l l s u p p o r t i n g i n f o r m a t i o n a v a i l a b l e f o r
i n s p e c t i o n a n d a u d i t b y r e p r e s e n t a t i v e s o f S C A G , t h e S t a t e , t h e B u r e a u s o f S t a t e
A u d i t s , o r t h e F e d e r a l G o v e r n m e n t u p o n r e q u e s t . C o p i e s s h a l l b e m a d e a n d
f u r n i s h e d b y S C A G u p o n r e q u e s t a t n o c o s t t o S C A G .
b . S C A G s h a l l m a i n t a i n a l l s o u r c e d o c u m e n t s , b o o k s a n d r e c o r d s c o n n e c t e d w i t h t h e
P r o j e c t u n d e r t h i s M O U a n d a l l w o r k p e r f o m 1 e d f o r a m i n i m u m o f f o u r ( 4 l y e a r s ,
a n d s h a l l m a k e a l l s u p p o r t i n g i n f o r m a t i o n a v a i l a b l e f o r i n s p e c t i o n a n d a u d i t b y
r e p r e s e n t a t i v e s o f t h e S u b - R e c i p i e n t , t h e S t a t e , t h e B u r e a u s o f S t a t e A u d i t s , o r t h e
F e d e r a l G o v e r n m e n t u p o n r e q u e s t . C o p i e s s h a l l b e m a d e a n d f u r n i s h e d b y t h e
S u b - R e c i p i e n t u p o n r e q u e s t a t n o c o s t t o t h e S u b - R e c i p i e n t .
c . T h e S u b - R e c i p i e n t s h a l l e s t a b l i s h a n d m a i n t a i n a n a c c o u n t i n g s y s t e m c o n f o r m i n g
t o 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 ( G A A P } t o s u p p o r t I n v o i c e s w h i c h
s e g r e g a t e a n d a c c u m u l a t e t h e c o s t s o f w o r k e l e m e n t s b y l i n e i t e m a n d p r o d u c e
P r o g r e s s R e p o r t s w h k h c l e a r l y i d e n t i f y r e i m b u r s a b l e c o s t s a n d o t h e r e x p e n d i t u r e s
b y O W P w o r k e l e m e n t s .
d . I f a p p l i c a b l e , t h e S u b - R e c i p i e n t a g r e e s t o i n c l u d e a l l c o s t s a s s o c i a t e d w i t h t h i s
M O U a n d a n y a m e n d m e n t s t h e r e t o t o b e e x a m i n e d i n t h e a n n u a l a u d i t a n d i n t h e
s c h e d u l e o f a c t i v i t i e s t o b e e x a m i n e d u n d e r a s i n g l e a u d i t p r e p a r e d b y t h e S u b -
R e c i p i e n t i n c o m p l i a n c e w i t h O f f i c e o f M a n a g e m e n t a n d B u d g e t C i r c u l a r A - 1 3 3 .
F e b r u a r y 7 , 2 0 l 3
P a g e 7
4 2 2
MOU No M-OO."i-13
Project/OWP No. 145.SCG02566.0l
e. Neither the pendency of a dispute nor its consideration by SCAG or the State shall
excuse the Sub-Recipient from full and timely performance in accordance with
the terms of this MOU.
15. Federal Certifications and Assurances
a. The Sub-Recipient shall adhere to the requirements contained in SCAG's annual
Certification and Assurances (FHW A and FT A "Metropolitan Transportation
Planning Process Certification") submitted as part of SCAG's OWP, pursuant to
23 CFR 450.334 and the 23 U.S. C. 1234. This Certification shall be published
annually in SCAG's OWP. Such requirements shall apply to the Sub-Recipient to
the same extent as SCAG and may include, but are not limited to:
1) Title VI of the Civil Rights Act of 1964 and Title VI Assurance executed
by California under 23 U.S.C. 324 and 29 U.S.C. 794;
2) Pub. Law 105-178, 112 Stat. 107 and any successor thereto, regarding the
involvement of disadvantaged business enterprises in FHWA and FT A
funded projects (Sec. 105(f), Pub. L. 970424, 96 Stat. 2100, 49 CPR part
26); and
3) The Americans with Disabilities Act of 1990 (Pub. L. 101-336, 104 Stat.
•
327, as amended) and the United States Department of Transportation (US •
DOT) implementing regulations (49 CFR 27, 37, and 38).
b. The Sub-Recipient shall additionally comply with the requirements contained in
the annual FT A "Certifications and Assurances for FTA Assistance," including
"Certifications and Assurances Required of Each Applicant" and the "Lobbying
Certification" in compliance with 49 U.S.C. Chapter 53; published annually in
SCAG's OWP. Such assurances shall apply to the Sub-Recipient to the same
extent as SCAG, and include but are not limited. the following areas:
l) Standard Assurances
2) Debarment, Suspension, and Other Responsibility Matters for Primary
Covered Transactions
3) Drug Free Work Place Agreement
4) Intergovernmental Review Assurance
5) Nondiscrimination Assurance
6) DBE Assunmce
7) Nondiscrimination on the Basis of Disability
8) Certification and Assurances Required by the U.S. Office of Management
and Budget
c. Federal Lobbying Activities Certification.
February 7. 20 13
Page8
l) By signing this MOU, the Sub-Recipient certifies, to the best of its •
knowledge and belief. that no State or Federal funds have been paid or
423
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M O U N o M - 0 0 5 - ! 3
P r o j e c t ! O W P N o . l 4 5 . S C G 0 2 5 6 6 . 0 !
w i l l b e p a i d , b y o r o n b e h a l f o f t h e S u b - R e c i p i e n t , r e s p e c t i v e l y , t o a n y
p e r s o n f o r i n 1 1 u e n c i n g o r a t t e m p t i n g t o i n t 1 u e n c e a n o f f i c e r o r e m p l o y e e o f
a n y S t a t e o r F e d e r a l a g e n c y , a M e m b e r o f t h e S t a t e L e g i s l a t u r e o r U n i t e d
S t a t e s C o n g r e s s , a n o f f i c e r o r e m p l o y e e o f t h e L e g i s l a t u r e o r C o n g r e s s , o r
a n y e m p l o y e e o f a M e m b e r o f t h e L e g i s l a t u r e o r C o n g r e s s i n c o n n e c t i o n
w i t h t h e a w a r d i n g o f a n y S t a t e o r F e d e r a l c o n t r a c t , t h e m a k i n g o f a n y
S t a t e o r F e d e r a l g r a n t , t h e m a k i n g o f a n y F e d e r a l l o a n , t h e e n t e r i n g i n t o o f
a n y c o o p e r a t i v e a g r e e m e n t , o r t h e e x t e n s i o n , c o n t i n u a t i o n , r e n e w a l ,
a m e n d m e n t , o r m o d i f i c a t i o n o f a n y S t a t e o r F e d e r a l c o n t r a c t , g r a n t , l o a n ,
o r c o o p e r a t i v e a g r e e m e n t .
2 ) I f a n y f u n d s o t h e r t h a n S t a t e o r F e d e r a l f u n d s h a v e b e e n p a i d o r w i l l b e
p a i d t o a n y p e r s o n f o r i n f l u e n c i n g o r a t t e m p t i n g t o i n t l u e n c e a n o f f i c e r o r
e m p l o y e e o f a n y F e d e r a l a g e n c y , a M e m b e r o f C o n g r e s s , a n o f f i c e r o r
e m p l o y e e o f C o n g r e s s , o r a n e m p l o y e e o f a M e m b e r o f C o n g r e s s i n
c o n n e c t i o n w i t h t h i s F e d e r a l g r a n t , t h e S u b - R e c i p i e n t , a s a p p l i c a b l e , s h a l l
c o m p l e t e a n d s u b m i t F e d e r a l S t a n d a r d F o r m - L L , " D i s c l o s u r e F o r m t o
R e p o r t L o b b y i n g , " i n a c c o r d a n c e w i t h t h o s e f o r m i n s t r u c t i o n s . "
3 ) T h i s c e r t i f i c a t i o n i s a m a t e r i a l r e p r e s e n t a t i o n o f f a c t , u p o n w h i c h r e l i a n c e
w a s p l a c e d w h e n . t h i s M O U w a s e n t e r e d i n t o . S u b m i s s i o n o f t h i s
c e r t i f i c a t i o n i s a p r e r e q u i s i t e f o r m a k i n g o r e n t e r i n g i n t o t h i s t r a n s a c t i o n
i m p o s e d b y S e c t i o n 1 3 5 2 . T i t l e 3 1 , U . S . C . a n d b y t h e M a s t e r F u n d
T r a n s f e r A g r e e m e n t b e t w e e n S C A G a n d t h e S t a t e .
1 6 . E q u a l E m p l o y m e n t O p p o r t u n i t y / N o n d i s c r i m i n a t i o n
a . I n t h e p e r f o r m a n c e o f w o r k u n d e r t a k e n p u r s u a n t t o t h i s M O U . t h e P a r t i e s a n d
t h e i r a s s i g n e e s a n d s u c c e s s o r s i n i n t e r e s t , s h a l l a f f i r m a t i v e l y r e q u i r e t h a t t h e i r
e m p l o y e e s a n d c o n t r a c t o r s s h a l l n o t u n l a w f u l l y d i s c r i m i n a t e , h a r a s s o r a l l o w
h a r a s s m e n t . a g a i n s t a n y e m p l o y e e o r a p p l i c a n t f o r e m p l o y m e n t b e c a u s e o f s e x ,
r a c e , c o l o r . a n c e s t r y , r e l i g i o u s c r e e d , n a t i o n a l o r i g i n , p h y s i c a l d i s a b i l i t y ( i n c l u d i n g
H I V a n d A I D S ) , m e d i c a l c o n d i t i o n ( c a n c e r ) , a g e . m a r i t a l s t a t u s . d e n i a l o f f a m i l y
a n d m e d i c a l c a r e l e a v e , a n d d e n i a l o f p r e g n a n c y d i s a b i l i t y l e a v e .
b . T h e P a r t i e s s h a l l e n s u r e t h a t t h e e v a l u a t i o n a n d t r e a t m e n t o f t h e i r e m p l o y e e s a n d
a p p l i c a n t s f o r e m p l o y m e n t a r e f r e e f r o m s u c h d i s c r i m i n a t i o n a n d h a r a s s m e n t . T h e
P a r t i e s s h a 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 o f t h e F a i r E m p l o y m e n t a n d H o u s i n g A c t
( G o v e r n m e n t C o d e , S e c t i o n 1 2 9 0 0 e t s e q . ) a n d t h e a p p l i c a b l e r e g u l a t i o n s
p r o m u l g a t e d t h e r e u n d e r ( C a l i f o r n i a C o d e o f R e g u l a t i o n s , T i t l e 2 , S e c t i o n 7 2 8 5 . 0
e t s e q . ) . T h e a p p l i c a b l e r e g u l a t i o n s o f t h e F a i r E m p l o y m e n t a n d H o u s i n g
C o m m i s s i o n i m p l e m e n t i n g t h e G o v e r n m e n t C o d e s e c t i o n s r e f e r e n c e d a b o v e , a r e
i n c o r p o r a t e d i n t o t h i s M O U b y r e f e r e n c e a n d m a d e a p a r t h e r e o f a s i f s e t f o r t h i n
f u l l .
F e b r u a r y 7 . 2 0 1 3
P a g e 9
4 2 4
MOU No M-005-13
Project/OWP No. l45.SCG02566.0l
c. If applicable, as determined by Sub-Recipient, the Parties shall give written notice
of their obligations under this clause to labor organizations with which they have
collective bargaining or other labor agreements.
d. Noncompliance: In the event of noncompliance by either Party with the
nondiscrimination provisions of this MOU. the other Party may cancel, terminate
or suspend the MOU, in whole or in part.
e. If required by DOT, additional or alternate sanctions for noncompliance may be
imposed.
17. Conflict of Interest
The Parties shall comply with Federal and State conflict of interest Jaws, regulations
and policies.
18. Independent Contractor
The Sub-Recipient and its officers. employees and agents shall be independent
contractors in the pe1formance of this MOU, and not officers, employees, contractors
or agents of SCAG.
19. Disputes
The Parties agree to submit any disputes arising under this MOU to neutral mediation
before resorting to litigation.
20. Noncompliance
In addition to such other remedies as provided by law, in the event of noncompliance
with any grant condition or specific requirement of this MOU, this MOU may be
terminated.
21. Termination of MOU
a. Termination for Convenience. SCAG may terminate this MOU at any time by
giving written notice to the Sub-recipient of termination at least thirty (30)
calendar days before the effective date of such termination. ln such event, all
finished or unfinished documents and other materials as described in the MOU
shall be returned to SCAG at its option.
b. Termination for Cause. If through any cause. the Sub-Recipient shall fail to timely
and adequately fulfill its obligations under this MOU. or if the Sub-Recipient
violates any of the covenants, agreements. or stipulations of this MOU. SCAG
shall thereupon have the right to tenninate the MOU by giving not less than ten
•
•
00) calendar days written notice to the Sub-Recipient of the intent to terminate •
and specifying the effective date thereof. SCAG shall provide a reasonable
February 7, 2013
Page lO
425
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M O U N o M - 0 0 5 - 1 3
P r o j e c t / O W P N o . 1 4 5 . S C G 0 2 5 6 6 . 0 I
o p p o r t u n i t y f o r t h e S u b - R e c i p i e n t t o c u r e p r i o r t o t e m 1 i n a t i o n . I n n o e v e n t s h a l J
s u c h o p p o r t u n i t y t o c u r e e x t e n d b e y o n d t h e t e r m o f t h e M O U . I n s u c h e v e n t , a l l
f i n i s h e d o r u n f i n i s h e d d o c u m e n t s a n d o t h e r m a t e r i a l s a s d e s c r i b e d i n t h e M O U
s h a l l b e r e t u r n e d t o S C A G a t i t s o p t i o n .
2 2 . N o n - A s s i g n m e n t
a . N e i t h e r P a r t y s h a l l a s s i g n t h i s M O U . o r a n y p a r t t h e r e o f , w i t h o u t t h e w r i t t e n
c o n s e n t o f e a c h P a r t y t o t h i s M O U . A n y a s s i g n m e n t w i t h o u t s u c h w r i t t e n c o n s e n t
s h a l l b e v o i d a n d u n e n f o r c e a b l e .
b . T h e c o v e n a n t s a n d a g r e e m e n t o f t h i s M O U s h a l l i n u r e t o t h e b e n e f i t o f , a n d s h a l l
b e b i n d i n g u p o n e a c h o f t h e P a n i c s a n d t h e i r r e s p e c t i v e s u c c e s s o r s a n d a s s i g n e e s .
2 3 . S e v e r a b i l i t y
I f a n y p r o v i s i o n o f t h i s M O U i s h e l d t o b e i l l e g a l , i n v a l i d , o r u n e n f o r c e a b l e , i n w h o l e
o r i n p a r t , s u c h p r o v i s i o n s h a l l b e m o d i f i e d t o t h e m i n i m u m e x t e n t n e c e s s a r y t o m a k e
i t l e g a l , v a l i d , a n d e n f o r c e a b l e , a n d t h e l e g a l i t y , v a l i d i t y , a n d e n f o r c e a b i l i t y o f t h e
r e m a i n i n g p r o v i s i o n s s h a l l n o t b e a f f e c t e d t h e r e b y .
2 4 . I n s u r a n c e
S u b - R e c i p i e n t s h a l l p r o c u r e a n d m a i n t a i n t h r o u g h o u t t h e T e n n o f t h i s M O U t h e
m i n i m u m r e q u i r e d i n s u r a n c e , a s s e t f o 1 1 h b e l o w , a g a i n s t c l a i m s f o r i n j u r i e s t o p e r s o n s ,
o r d a m a g e s t o p r o p e r t y , w h i c h m a y a r i s e f r o m o r i n c o n n e c t i o n w i t h t h e p e r f o r m a n c e o f
t h e w o r k h e r e u n d e r b y t h e S u b - R e c i p i e n t , i t s i n t e r n s , e m p l o y e e s . a g e n t s , o r
r e p r e s e n t a t i v e s .
a . M i n i m u m S c o p e o f I n s u r a n c e - C o v e r a g e s h a l l b e a t l e a s t a s b r o a d a s :
1 ) I n s u r a n c e S e r v i c e s O f f i c e C o m m e r c i a l G e n e r a l L i a b i l i t y c o v e r a g e
( O c c u r r e n c e f o r m C G D O O I ) , o r i t s e q u i v a l e n t .
2 ) I n s u r a n c e S e r v i c e s O f f i c e f o m 1 n u m b e r C A O O O 1 ( E d . 1 / 8 7 )
A u t o m o b i l e L i a b i l i t y . c o d e I ( a n y a u t o ) o r i t s e q u i v a l e n t .
c o v e n n o b
3 ) W o r k e r s ' C o m p e n s a t i o n i n s u r a n c e a s r e q u i r e d b y t h e S t a t e o f C a l i f o r n i a a n d
E m p l o y e r ' s L i a b i l i t y I n s u r a n c e .
4 ) P r o f e s s i o n a l L i a b i l i t y ( E r r o r s a n d O m i s s i o n s ) i n s u r a n c e a p p r o p r i a t e t o t h e
S u b - R e c i p i e n t e m p l o y e e s � p r o f e s s i o n .
b . M i n i m u m L i m i t s o f I n s u r a n c e - S u b - R e c i p i e n t s h a l l m a i n t a i n l i m i t s n o l e s s t h a n :
F e b r u a r y 7 . 2 0 l 3
P a g e 1 1
I ) G e n e r a l L i a b i l i t y : $ 1 , 0 0 0 , 0 0 0 p e r o c c u r r e n c e f o r b o d i l y i n j u r y , p e r s o n a l
i n j u r y a n d p r o p e r t y d a m a g e . I f C o m m e r c i a l G e n e r a ] L i a b i l i t y I n s u r a n c e o r
o t h e r f o m 1 w i t h a g e n e r a l a g g r e g a t e l i m i t i s u s e d , e i t h e r t h e g e n e r a l
4 2 6
MOl! No M-005-!3
Project/OWP No. J4).SCG02566.01
aggregate limit shall apply separately to this project/location or the general •
aggregate limit shall be twice the required occurrence limit.
2) Automobile Liability: Including contractual liability insming owned, non-
owned, hired and all vehicles by Sub-Recipient with a combined single limit
of not less than $1,000,000 applicable to bodily injury, or death, and loss of
or damage to propet1y in any one occuJTence.
3) Workers' Compensation Liability: IncJuding Occupational · Diseases in
accordance with Califomia Law and Employers' Liability Insurance with a
limit of not less than $1,000,000 each accident.
4) Professional Liability Insurance: With limits of not less than $1,000,000 per
occurrence. In addition, it shall be required that the professional liability
insurance policy remain in effect for six ( 6) months after the Completion
Date of this MOU.
c. Other Insurance Provisions -The general liability and automobile liability policies
are to contain, or be endorsed to contain, the following provisions:
I ) SCAG, its subsidiaries, officials and employees are to be covered as
additional insureds, excluding automobile, as Sub-Recipient, prqducts and
completed operations of Sub-Recipient; premises owned, occupied or used
by Sub-Recipient; or automobiles owned leased, hired or borrowed by Sub-•
Recipient. The coverage shall contain no special limitations on the scope of
protection afforded to SCAG, its members, subsidiaries. officials and
employees.
2) For any claims related to this project, each Sub-Recipient's insurance
coverage shall be primary insurance as respects SCAG, its members,
subsidiaries, officials and employees. Any insurance or self-insurance
maintained by SCAG shall.be in excess of Sub-Recipient's insurance and
shall contribute to it.
3) Any failure to comply with reporting or other provisions of the policies
including breaches of warranties shall not affect coverage provided to
SCAG, its members, subsidiaries, officials and employees.
4) Sub-Recipient's insurance shall apply separately to each insured against
whom claim is made or suit is brought, except with respect to the limits of
the insurer's liability.
5) Workers' Compensation and Employer's Liability policies shall contain the
inclusion of SCAG, its members, subsidiaries, officials and employees as
additional insured, or provide a waiver of subrogation.
February 7. 20 n
Page 12
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1 \ � 1 0 U N o l \ - 1 - 0 0 5 - 1 3
P r o j e c t / 0 \ V P N o . 1 4 . ' i . S C G 0 2 5 6 6 . 0 1
d . D e d u c t i b l e s a n d S e l f - I n s u r e d R e t e n t i o n s - A n y d e d u c t i h l e s o r s e l f - i n s u r e d r e t e n t i o n s
i n a m o u n t s o v e r $ 1 0 , 0 0 0 m u s t b e d e c l a r e d t o a n d a p p r o v e d b y S C A G .
e . A c c e p t a b i l i t y o f I n s u r e r s - I n s u r a n c e i s t o b e p l a c e d w i t h C a l i f o r n i a a d m i t t e d
i n s u r e r s w i t h a c u r r e n t A M . B e s t ' s r a t i n g o f n o J e s s t h a n A a n d b e a d m j t t e d , u n l e s s
o t h e r w i s e a p p r o v e d b y S C A G .
f . V e r i f i c a t i o n o f C o v e r a g e - S u b - R e c i p i e n t s h a l l f u r n i s h S C A G w i t h o r i g i n a l
e n d o r s e m e n t s a n d c e r t i f i c a t e s o f i n s u r a n c e e v i d e n c i n g c o v e r a g e r e q u i r e d b y t h i s
c l a u s e . A l l d o c u m e n t s a r e t o b e s i g n e d b y a p e r s o n a u t h o r i z e d b y t h a t i n s u r e r t o h i n d
c o v e r a g e o n i t s b e h a l f . A l l d o c u m e n t s a r e t o b e r e c e i v e d a n d a p p r o v e d b y S C A G
b e f o r e w o r k c o m m e n c e s . A s a n a l t e r n a t i v e , t h e S u b - R e c i p i e n t m a y p r o v i d e
c o m p l e t e , c e r t i f i e d c o p i e s o f a l l r e q u i r e d i n s u r a n c e p o l i c i e s , i n c l u d i n g e n d o r s e m e n t s
a f f e c t i n g t h e c o v e r a g e r e q u i r e d b y t h e s e s p e c i f i c a t i o n s .
2 5 . J u r i s d i c t i o n a n d V e n u e
T h i s M O U s h a l l b e d e e m e d a n A g r e e m e n t 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 ,
a n d f o r a l l p u r p o s e s s h a l l h e i n t e r p r e t e d i n a c c o r d a n c e w i t h s u c h l a w s . B o t h P a r t i e s
h e r e b y a g r e e a n d c o n s e n t t o t h e e x c l u s i v e j u r i s d i c t i o n o f t h e c o u r t s o f t h e S t a t e o f
C a l i f o r n i a a n d t h a t t h e v e n u e o f a n y a c t i o n b r o u g h t t h e r e u n d e r s h a l l b e L o s A n g e l e s
C o u n t y , C a l i f o r n i a .
" 2 6 . W a i v e r
"
N o d e l a y o r f a i l u r e b y e i t h e r P a r t y t o e x e r c i s e o r e n f o r c e a t a n y t i m e a n y r i g h t o r
p r o v i s i o n o f t h i s M O U s h a l l b e c o n s i d e r e d a w a i v e r t h e r e o f o f s u c h P a r t y ' s r i g h t
t h e r e a f t e r t o e x e r c i s e o r e n f o r c e e a c h a n d e v e r y r i g h t a n d p r o v i s i o n o f t h i s M O U . A
W a i v e r t o b e v a l i d s h a l J h e i n w r i t i n g b u t n e e d n o t b e s u p p o r t e d b y c o n s i d e r a t i o n . N o
s i n g l e w a i v e r s h a l l c o n s t i t u t e a c o n t i n u i n g o r s u b s e q u e n t w a i v e r .
2 7 . E f f e c t i v e D a t e
T h e E f f e c t i v e D a t e o f t h i s M O U s h a l l m e a n t h e d a t e ( m e a n i n g t h e l a s t d a t e i n d i c a t e d
b e l o w ) t h a t t h e P a r t i e s h a v e f u l l y e x e c u t e d t h i s M O U .
2 8 . . E n t i r e M O U
T h i s M O U , i n c l u d i n g t h e a t t a c h e d E x h i b i t s A t h r o u g h C , r e p r e s e n t s a n d c o n t a i n s t h e
e n t i r e a g r e e m e n t o f t h e P a r t i e s w i t h r e s p e c t t o t h e m a t t e r s s e t f o r t h h e r e i n . T h i s M O U
s u p e r s e d e s a n y a n d a l l p r i o r n e g o t i a t i o n s , d i s c u s s i o n s a n d , i f a n y , p r e v i o u s a g r e e m e n t s
b e t w e e n t h e P a r t i e s .
F e b r u a r y 7 , 2 0 J 3
P a g e 1 3
[ S i g n a t u r e s o n : F o l l o w i n g P a g e ]
4 2 8
MOl! No M-005-13
Project!OWP No. l45.SCG025tJ6.01
SIGNATURE PAGE TO MEMORANDUM OF UNDERSTANDING NO.
.M-005-13
IN WITNESS WHEREOF, the Parties have caused this MOU to be executed by their
duly authorized representatives as of the dates indicated below:
RIVERSIDE COUNTY TRANSPORTATION COMMISSION
By: ____________________________________ __
Anne Mayer
Executive Director
APPROVED AS TO FORM:
By: ____________________________________ __
Name:
Title:
Date
Date
SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS
By: ____________________________________ ___
Basil Panas
Acting Chief Financial Officer
APPROVED AS TO FORM:
By: __________ ~---------------------------
Joann Africa
Chief Counsel
February 7. 20U
Page 14
429
Date
Date
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A T T A C H M E N T 2
S C O P E O F W O R K
" R i s i n g S t a r s i n T r a n s i t " - I n t e r n s h i p s f o r U n i v e r s i t y S t u d e n t s
R C T C s h a l l i m p l e m e n t a f o r m a l i z e d t r a n s i t p l a n n i n g i n t e r n s h i p p r o g r a m t h a t s h a l l p r o v i d e n e e d e d
e x p e r i e n c e b a s e d e d u c a t i o n t o l o c a l u n i v e r s i t y s t u d e n t s . T h e p r o g r a m s h a l l i n c l u d e r e c r u i t i n g a n d h i r i n g
o f l o c a l s t u d e n t s t o p a r t i c i p a t e i n t h e p r o g r a m . T h e s t u d e n t s s h a l l b e o f f e r e d a n h o u r l y w a g e , b a s e d o n
e x p e r i e n c e , f r o m $ 8 t o $ 2 0 a n h o u r . T h e i n t e r n s h i p m a y a l s o q u a l i f Y f o r a c a d e m i c c r e d i t . T h e s t u d e n t s
m a y w o r k f o r u p t o o n e c a l e n d a r y e a r f o r 1 2 - 2 0 h o u r s a w e e k d u r i n g t h e s c h o o l y e a r . T h e r e s h a l l , a t t h e
o p t i o n o f R C T C , b e m u l t i p l e i n t e r n s a t a n y o n e t i m e a n d a s u c c e s s f u l i n t e r n m a y r e a p p l y t o w o r k
a d d i t i o n a l q u a r t e r s . T h e p r o g r a m s h a l l l a s t f o r t h e F Y 1 3 1 1 4 a n d F Y 1 4 / 1 5 s c h o o l y e a r s t o c o r r e s p o n d w i t h
t h e p e r i o d o f t h e g r a n t .
T o e n s u r e a s u c c e s s f u l o u t c o m e o f t h e p r o j e c t , a n I n t e r n S u p e r v i s o r s h a l l b e d e s i g n a t e d a m o n g t h e
m a n a g e m e n t s t a f f t o s e r v e a s t h e l i a i s o n b e t w e e n t h e i n t e r n a n d m a n a g e r s / d i r e c t o r s . S e c o n d , t h e I n t e r n
S u p e r v i s o r w i l l w o r k c l o s e l y w i t h m a n a g e r s / d i r e c t o r s t o d e v e l o p p o s i t i o n d e s c r i p t i o n s t h a t c l e a r l y o u t l i n e
e x p e c t e d o u t c o m e s a n d m e a s u r a b l e w o r k a s s i g n m e n t s . O n c e d e v e l o p e d , t h e C o m m i s s i o n s h a l l w o r k w i t h
l o c a l c o l l e g e s t o p u b l i c i z e t h e p o s i t i o n a n d i d e n t i f Y t a l e n t . D e p e n d i n g o n t h e p o s i t i o n , t h e
m a n a g e r / d i r e c t o r s h a l l b e i n v o l v e d i n t h e s c r e e n i n g a n d i n t e r v i e w p r o c e s s f o r s e l e c t i o n o f t h e i n t e r n .
O n c e s e l e c t e d , t h e I n t e r n S u p e r v i s o r s h a l l p r o v i d e a n o r i e n t a t i o n f o r t h e i n t e r n a n d m e e t o n a r e g u l a r b a s i s
w i t h b o t h t h e i n t e r n a n d t h e m a n a g e r / d i r e c t o r t o p r o v i d e f e e d b a c k a n d i n s u r e p r o j e c t s a r e o n t r a c k .
D u r i n g t h e i n t e r n s h i p , s t u d e n t s s h a l l w o r k w i t h d i f f e r e n t d e p a r t m e n t m a n a g e r s / d i r e c t o r s l e a r n i n g v a r i o u s
a s p e c t s o f 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 i n t e r n s h i p s h a l l i n c l u d e s p e c i f i c m e a s u r a b l e a s s i g n m e n t s o r
o b j e c t i v e s , f i e l d t r i p s , a s w e l l a s m e e t i n g s w i t h l o c a l e l e c t e d o f f i c i a l s a n d e x p o s u r e t o t h e p u b l i c o u t r e a c h
p r o c e s s .
T h e s t u d e n t s s h a l l b e s u p e r v i s e d a n d m e n t o r e d w i t h r e g u l a r p e r f o r m a n c e m e e t i n g s . A t t h e e n d o f e a c h
s e s s i o n , t h e s t u d e n t s s h a l l b e g i v e n a f i n a l p e r f o r m a n c e e v a l u a t i o n a n d t h e y s h a l l p r o v i d e R C T C w i t h a n
e v a l u a t i o n o f t h e i n t e r n s h i p p r o g r a m , w h i c h s h a l l d e s c r i b e t h e i r e x p e r i e n c e - w h a t t h e y l e a r n e d a b o u t
t r a n s i t / t r a n s p o r t a t i o n p l a n n i n g a n d h o w t h e y w e r e a b l e t o i n c o r p o r a t e c l a s s r o o m t h e o r y i n t o t h e i r
i n t e r n s h i p e x p e r i e n c e .
1 . O r i e n t a t i o n
T a s k 1 . 1
O r i e n t a t i o n : M e e t w i t h M u l t i m o d a l S e r v i c e s D e p a r t m e n t s t a f f a n d p a r t i c i p a t e i n a n o r i e n t a t i o n
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 a s k 1 . 2
O v e r v i e w : C o m m u t e r a n d M o t o r i s t A s s i s t a n c e ; R a i l ; T r a n s i t ; P r o c u r e m e n t ; F i n a n c e ; a n d o t h e r
R C T C d e p a r t m e n t s .
4 3 0
2. Freeway Service Patrol
Task 2.1
Training: Attend two-day driver training course.
Task 2.2
Tracking: Research, track, maintain, update, and replenish various Freeway Service Patrol
inventory.
Task 2.3
Planning: Prepare and provide driver comments, issue driver awards, and plan for quarterly driver
meetings.
Task 2.4
Reporting: Compile sync and penalty time reports.
Planning
Reporting Weekly and Monthly Reports
3. Commuter Assistance Program
Task 3.1
Meeting: Meetings with Commuter and Motorist Assistance Manager and Staff Analyst to discuss
RCTC processes, review projects, receive assignments.
Task 3.2
Reporting: Compile information for and completes monthly and annual reports.
Task 3.3
Promotions: Research and suggest promotional items and outreach methods for various
Commuter Assistance projects.
Task 3.4
Monitor: Monitor renewal ofRCTC web domains and develop annual cost model.
Task 3.5
Testing: Perform various levels of testing on developing rideshare software.
Task 3.6
Administration: Annually, assist in administering TDA Article 3 Call for Projects.
431
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3 . 1
3 . 2
3 . 3 P r o m o t i o n s
3 . 4 M o n i t o r
3 . 5 T e s t i n T e s t i n g F e e d b a c k D o c u m e n t s
3 . 6 A d m i n i s t r a t i o n D a t a b a s e s
4 . I n l a n d E m p i r e 5 1 1
T a s k 4 . 1
R e p o r t i n g : C o m p i l e i n f o r m a t i o n f o r , c o m p l e t e , a n d p r i n t m o n t h l y a n d a n n u a l r e p o r t s .
T a s k 4 . 2
T e s t i n g : P e r f o r m v a r i o u s l e v e l s o f q u a l i t y c o n t r o l t e s t i n g o n I n t e r a c t i v e V o i c e R e c o g n i t i o n
S y s t e m a n d c a m e r a f e e d s .
T a s k 4 . 3
M o n i t o r : M o n i t o r o p t i m a l p e r f o r m a n c e o f r e a l - t i m e w e b s i t e f e a t u r e s .
5 . C a l l B o x
T a s k 5 . 1
I n v o i c i n g : T r a c k , r e p o r t , a n d f o l l o w - u p o n d i s c r e p a n c i e s i n m o n t h l y i n v o i c i n g .
T a s k 5 . 2
U p d a t e : U p d a t e s v a r i o u s o u t d a t e d l i s t s , d a t a b a s e s , a n d i n v e n t o r y .
T a s k 5 . 3
A u d i t i n g : M o n i t o r p e r f o r m a n c e o f c a l l b o x c a l l o p e r a t o r s .
T a s k 5 . 4
P r o c u r e m e n t : P a r t i c i p a t e i n e v a l u a t i o n c o m m i t t e e f o r s e l e c t i o n o f n e w c a l l b o x m a i n t e n a n c e
o p e r a t o r .
4 3 2
I 5.4 I Procurement I Participation in committee
6. Park and Ride
Task 6.1
Contracts: Maintain updated contract information, draft annual amendments, and draft agreement
summary sheets.
Task 6.2
Assess: Required ADA space availability.
Task 6.3
Reporting & Analysis: Develop mechanism for generating various types of usage statistics.
Research implementation of Caltrans Cost-Benefit Analysis.
Task 6.4
Field Work: Perform lot count ride-alongs and input quarterly lot count data and notes
Task 6.5
Administration: Process annual permit renewals and issue new and replacement permits.
7. Short Range Transit Plan Analysis & Implementation
Task 7.1
Outreach: Update information related to the Short Range Transit Plan.
Task 7.2
Meetings: Attend meetings with Transit Manager and staff to identify duties for the Short Range
Transit Plan.
Task 7.3
Data Analysis: Analyze Transit data and TransTrack reports.
8. Procurement
433
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8 . 1
8 . 2
" 8 . 3
8 . 4
8 . 5
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T a s k 8 . 1
E n t e r / U p d a t e C o n t r a c t D a t a : E n t e r s c o n t r a c t i n f o r m a t i o n i n t o t h e E D E N f i n a n c i a l s y s t e m .
T a s k 8 . 2
A n a l y s i s : R u n E D E N r e p o r t s a n d a n a l y z e p r o c u r e m e n t d o c u m e n t s ; a s s i s t i n r e c o n c i l i n g r e q u i r e d
i n s u r a n c e a n d c o n t r a c t d o c u m e n t s .
T a s k 8 . 3
O u t r e a c h : R e s e a r c h / p a r t i c i p a t e i n v a r i o u s S m a l l B u s i n e s s E n t e r p r i s e ( S B E ) a n d D i s a d v a n t a g e d
B u s i n e s s E n t e r p r i s e ( D B E ) e v e n t s . A n s w e r a n d r e s p o n d t o p u b l i c i n q u i r i e s .
T a s k 8 . 4
D o c u m e n t s : I n d i c a t e / p r e p a r e s o l i c i t a t i o n s d o c u m e n t s . R e v i e w p r o c u r e m e n t d o c u m e n t s f o r
c o m p l e t e n e s s . A s s i s t i n f i l i n g , o r g a n i z i n g a n d m a i n t a i n i n g p r o c u r e m e n t r e c o r d s .
T a s k 8 . 5
O t h e r : O t h e r r e l a t e d p r o c u r e m e n t d u t i e s a s n e e d e d .
E n t e r / U p d a t e C o n t r a c t D a t a C o m p l e t e d C h e c k L i s t
A n a l y s i s S u m m a r y a n d R e p o r t s
O u t r e a c h R e p o r t o f O u t r e a c h A c t i v i t i e s
D o c u m e n t s D r a f t a n d R e v i e w D o c u m e n t s
O t h e r V a r i o u s
4 3 4
" M a r c h 2 7 , 2 0 1 2 E " P r o j e c t S c h e d u l e a n d F u n d i n g C h a r t 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 T r a n s p o r t a t i o n P l a n n i n g G r a n t s F i s c a l Y e a r 2 0 1 2 - 2 0 1 3 4 3 5 A T T A C H M E N T 3 "
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A G E N D A I T E M 1 5
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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 p r i l 2 2 , 2 0 1 3
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 ;
2 ) A d o p t a S u p p o r t p o s i t i o n o n A B 1 0 8 1 ( M e d i n a ) ; 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 :
S t a t e U p d a t e
C o m m i t t e e h e a r i n g s a r e u n d e r w a y o n t h e t h o u s a n d s o f b i l l s i n t r o d u c e d i n F e b r u a r y .
A s t h i s o c c u r s , a m e n d m e n t s t o b i l l s a r e o c c u r r i n g a t a f a s t e r c l i p , r e v e a l i n g m o r e
d e t a i l s a b o u t w h a t L e g i s l a t o r s i n t e n d t o a c c o m p l i s h t h i s y e a r . A n u m b e r o f
t r a n s p o r t a t i o n r e l a t e d b i l l s r e m a i n i n " s p o t " f o r m ; s t a f f i s m o n i t o r i n g t h e s e b i l l s a n d
w i l l b r i n g r e l e v a n t b i l l s f o r w a r d t o a d o p t o f f i c i a l p o s i t i o n s a t a n a p p r o p r i a t e t i m e .
F o c u s i s a l s o t u r n i n g t o t h e G o v e r n o r ' s M a y B u d g e t R e v i s i o n , c o m m o n l y c a l l e d t h e
" M a y R e v i s e . " A t t h e t i m e t h i s s t a f f r e p o r t w a s w r i t t e n , t h e M a y R e v i s e w a s n o t
p u b l i s h e d , b u t w i l l b e a v a i l a b l e f o r a n a l y s i s b y t h e t i m e t h e C o m m i s s i o n m e e t s a t
i t s M a y m e e t i n g a n d r e c e i v e s t h i s s t a f f r e p o r t .
O n t h e C a l i f o r n i a E n v i r o n m e n t a l Q u a l i t y A c t ( C E O A ) r e f o r m f r o n t , t h e C o m m i s s i o n
s e n t a n o p e n l e t t e r t o t h e G o v e r n o r a n d M e m b e r s o f t h e L e g i s l a t u r e d e c l a r i n g t h e
C o m m i s s i o n ' s p r i o r i t i z a t i o n o f t h e i s s u e a n d i t s m e m b e r s h i p i n j o i n i n g t h e C E Q A
W o r k i n g G r o u p . I n t h e m e a n t i m e , s e v e r a l c i t i e s i n R i v e r s i d e C o u n t y a d o p t e d l e t t e r s
o f s u p p o r t a n d r e s o l u t i o n s , o r a l s o j o i n e d t h e C E O A W o r k i n g G r o u p - t h r o u g h
c o o r d i n a t i o n w i t h t h e C o m m i s s i o n ' s l e g i s l a t i v e s t a f f . E x e c u t i v e D i r e c t o r A n n e
M a y e r a n d l e g a l c o u n s e l f r o m B e s t B e s t & K r i e g e r L L P s p o k e a t t h e S a n B e r n a r d i n o
C i t y / C o u n t y C o n f e r e n c e a b o u t t h e C o m m i s s i o n ' s s t e p s t o e n g a g e i n t h e C E O A
d e b a t e . I n M a y , C o m m i s s i o n l e g i s l a t i v e s t a f f w i l l p r e s e n t t o t h e W e s t e r n R i v e r s i d e
" C o u n c i l o f G o v e r n m e n t s ( W R C O G ) E x e c u t i v e C o m m i t t e e o n t h e i s s u e . S t a f f a l s o
A g e n d a I t e m 1 5
4 3 6
worked with individual legislative offices representing Riverside County to explain •
the experiences with CEOA and how legislative efforts can assist Commission
projects and adopted policy principles.
AB 1081 (Medina)-Economic Development: Goods Movement Infrastructure
Staff Recommendation: Support
Existing state law requires the Governor to annually submit a five-year
infrastructure plan to the Legislature as a component of the Governor's proposed
budget. This infrastructure plan is required to look at the needs of a variety of
infrastructure sectors including education and transportation, as well as possibilities
for funding these needs. Riverside's Assembly Member Jose Medina has
introduced AB 1 081, which would require the Governor to specifically address
goods movement-related infrastructure in the five-year plan. AB 1 081 also requires
the Governor's plan to make recommendations to increase private sector
participation in financing goods movement projects.
The Commission's adopted state legislative platform promotes identifying
permanent funding sources for goods movement projects. Additionally, in recent
years the Commission actively participated in state and federal coalitions seeking to
call attention to freight issues and its impacts on congestion, air quality, and quality
of life in Southern California -as well as the significant economic benefits of the
logistics industry to the Inland Empire. Given Riverside County's large identified •
needs for grade separations and highway interchanges impacted by port traffic, AB
1 081 provides a vehicle to further elevate and focus state resources on this vital
sector of our economy and transportation network.
Federal Update
Moving Ahead for Progress in the 21st Century (MAP-21) contained a new provision
requiring all contracts that are eligible for federal reimbursement to comply with
"Buy America." Congress implemented Buy America requirements over the years
in several pieces of legislation, including multi-year surface transportation bills and
in the American Recovery and Reinvestment Act (ARRA) of 2009. Buy America
provisions usually require public works projects use 1 00 percent American-made
iron, steel, and manufactured products.
Interpretations of the Buy America language in MAP-21 led to an interpretation by
the Federal Highway Administration (FHWA) and Federal Transit Administration
(FT A) that utility relocations for federal-aid transportation projects must comply
with Buy America. This places the Commission and transportation agencies across
the country in the newfound position of being required to require utility companies
to sign relocation agreements that commit the utility company to use 1 00 percent •
American-made products in their work.
Agenda Item 1 5
437
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L e s s t h a n o n e y e a r s i n c e t h e p a s s a g e o f M A P - 2 1 , m a n y t r a n s p o r t a t i o n a g e n c i e s
a n d u t i l i t y c o m p a n i e s a r e j u s t b e g i n n i n g t o e n c o u n t e r s i t u a t i o n s w h e r e t h e n e w B u y
A m e r i c a p o l i c y i s i m p a c t i n g p r o j e c t s . I n t h e c a s e o f t h e C o m m i s s i o n , t h e 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 i s i n n e e d t o t h r e e u t i l i t y r e l o c a t i o n s b y
A T & T , S o u t h e r n C a l i f o r n i a E d i s o n , a n d T h e G a s C o m p a n y . A t t h e t i m e t h i s s t a f f
r e p o r t w a s w r i t t e n , n o n e o f t h e t h r e e a f o r e m e n t i o n e d c o m p a n i e s w i l l a g r e e t o s i g n
r e l o c a t i o n a g r e e m e n t s w i t h B u y A m e r i c a c l a u s e s . U t i l i t y c o m p a n i e s t h e
C o m m i s s i o n d e a l s w i t h h a v e n o t p u b l i c l y s t a t e d t h e i r r a t i o n a l e i n r e f u s i n g t o
p a r t i c i p a t e i n B u y A m e r i c a . W i t h o u t t h e s e a g r e e m e n t s , r e l o c a t i o n s n e c e s s a r y f o r
t h e p r o j e c t c a n n o t o c c u r . F H W A w i l l n o t a p p r o v e a n y p r o j e c t s t h a t d o n o t c o m p l y
w i t h B u y A m e r i c a . T h e r e f o r e , t h e C o m m i s s i o n i s i n a d i f f i c u l t s i t u a t i o n .
T h e C o m m i s s i o n i s n o t a l o n e a n d e n g a g e d C a l t r a n s , s i s t e r a g e n c i e s i n S o u t h e r n
C a l i f o r n i a , a n d t h e C o m m i s s i o n ' s l o b b y i s t s i n W a s h i n g t o n . L a s t w e e k , s t a f f h e l d
h i g h - l e v e l m e e t i n g s w i t h F H W A a n d s t a f f f r o m c o n g r e s s i o n a l c o m m i t t e e s t o p u s h
f o r a n e a r - t e r m s o l u t i o n t o t h i s u n f o r e s e e n c o n s e q u e n c e o f f e d e r a l l a w . S t a f f w i l l
c o n t i n u e t o e l e v a t e t h e a w a r e n e s s o f t h e c u r r e n t s t a l e m a t e a n d p a r t i c i p a t e i n
d e v e l o p i n g a s o l u t i o n . S t a f f ' s g o a l s a r e t o a v e r t p o t e n t i a l p r o j e c t d e l a y s o r c o s t
i n c r e a s e s w h i l e a l s o p l a c i n g t h e i s s u e s q u a r e l y i n f r o n t o f W a s h i n g t o n d e c i s i o n -
m a k e r s w h o c a n b e n e f i t f r o m u n d e r s t a n d i n g t h e p r a c t i c a l i m p l i c a t i o n s . o f p o l i c y .
C o m m i s s i o n e r s c a n e x p e c t t o r e c e i v e f u t u r e u p d a t e s o n h o w t h i s i s s u e w i l l b e
r e s o l v e d .
A g e n d a I t e m 1 5
4 3 8