2018/08/08 Council Agenda Packet

r I,: (4) Repayment of 2018 Bond Payment Loans. The District hereby agrees to repay each 2018 Bond Payment Loan. Each 2018 Bond Payment Loan shall be repaid to the City at the times and in accordance with the priorities provided in Article III. (e) Capital Reserve Account. (1) Establishment and Purpose of Capital Reserve Account. The District shall establish and maintain a Capital Reserve Account. The Capital Reserve Account shall be maintained for the purpose of providing for the payment of Capital Expenditures for the Events Center. (2) Deposits to the Capital Reserve Account. Commencing with the calendar year, 2019, the District shall provide for deposits into the Capital Reserve Account equal to the Annual Capital Repair Reserve Payment set forth in the Capital Needs Assessment (as defined and described below). The Capital Needs Assessment and the amount of the Annual Capital Repair Reserve Payment shall be determined as provided below. In order to calculate the Annual Capital Repair Reserve Payment, the District shall retain an independent qualified structural engineering fret with at least five (5) years of experience inspecting buildings comparable to the Events Center or other qualified construction professional ("Tnspecting Engineer") to conduct a physical inspection of the condition of the Events Center (including all major building systems). Within thirty (30) days following such inspection, the Tnspecting Engineer shall deliver a copy of its report ("Inspection Report") to the District, including a description of what Capital Expenditures, if any, need to be made to the Events Center through the stated maturity date of the 2018 Bonds in order to maintain the Events Center in substantially its present condition and state of repair (as of the date of its original final acceptance), nonual wear and tear excepted. The Inspection Report will include recommendations for periodic maintenance or other preventive measures that are necessary to minimize Capital Expenditures and otherwise maintain the Events Center in an economic and cost effective manner. The Inspection Report should include a recommended schedule of Capital Expenditures to be made during the next ten (10) year period, and cost estimates to implement such schedule. The District shall determine a proposed capital expenditure work plan ("Capital Needs Assessment") based upon the Inspection Report and taking into account amounts already on deposit in the Capital Reserve Account. The Capital Needs Assessment so approved by the District shall be effective for the next five (5) year period. Deposits to the Capital Reserve Account shall be made at least annually on or within five days following each Annual Full Funding Date (each an "Annual Capital Reserve Payment") in amounts at least equal to one- tenth (1/10) of the total capital requirements for the subsequent ten (10) year period. Additional deposits to the Capital Reserve Account may be made to fund large Capital Expenditures scheduled to occur within the first five (5) years of this Agreement according to available resources of the District. Following the development of the initial Inspection Report, the District shall engage the services of an Inspecting Engineer to update the Inspection Report no later than the end of each five(5)year period. • 5-41- 501534419 v3