HomeMy WebLinkAboutMINUTES-04/01/1965-Regular185
MINUTES OF A REGULAR MEETING OF THE COUNCIL OF THE CITY OF FORT COLLINS, Held
Thursday, April 1, 1965; at 1:30 o'clock P.M.
Present: Councilmen Colwell, McMillan, Guyer and Councilwoman Quinn. City Mana-
ger Boos, City Attorney March and City Engineer Fischer. Absent: Councilman Johnson,
4.
excused. Assistant Mayor McMillan, presiding.
Motion was made by Councilwoman Quinn, seconded by Councilman Guyer, that the
reading of the minutes of the last regular meeting held March 25, 1965, be dispensed with.
Roll was called resulting as follows: Ayes: Councilmen Colwell, McMillan, Guyer and
Councilwoman Quinn. Absent: Councilman Johnson, excused. Nayes: None. The President
declared the motion adopted.
The application of B.P.O.E. #804, 140 West Oak Street, to t he State of Colorado,
for renewal of 3.2% beer license, was presented. Motion was made by Councilwoman Quinn,
seconded by Councilman Guyer, that the Mayor and City Clerk be authorized to execute the
approval of the licensing authority. Roll was called resulting as follows: Ayes: Council
man Colwell, McMillan, Guyer and Councilwoman Quinn. Absent: Councilman Johnson, excused.
Nayes: None. The President declared the motion adopted.
The application of B.P.O.E. #804, 140 West Oak, to the City for a renewal of a
non -intoxicating malt liquor license, accompanied by the required fee, was presented.
Motion was made by Councilwoman Quinn, seconded by Councilman Guyer, that the license be
granted subject to the issuance of the State license. Roll was call-.d resulting as follows:
Ayes: Councilmen Colwell, McMillan, Guyer 'and Couhcilworm n Quinn. Absent: Councilman
Johnson, excused. Nayes: None. The President declared the motion adopted.
The City Clerk advised the Council that the affidavit of the first publie'etion-
sewdr bond ordinance which was published in the Fort Collins Coloradoan in the issue of
March 16, 1965, had been received and is now on file. Motion was made by Councilwoman
Quinn, seconded by Councilman Guyer, that the affidavit be received, filed and be preserved
on the records of the City Clerk. Roll was called resulting as follows: Ayes: Councilmen
Colwell, McMillan, Guyer and Councilwoman Quinn. Absent: Councilman Johnson, excused.
Nayes: None. The President declared the motion adopted.
The City Clerk advised the City Council that this was the date for t he hearing
and the second reading of the SeKOX Bond Ordinance, being No. 15, 1965, as follows:
"AN ORDINANCE AUTHORIZING THE ISSUANCE BY THE CITY OF FORT COLLINS, COLORADO, OF THE CITY'S
NEGOTIABLE, COUPON "CITY OF FORT COLLINS, COLORADO, SEWER REFUNDING AND IMPROVEMENT BONDS,
SERIES JUNE 1, 1965" IN THE AGGREGATE PRINCIPAL AMUUNT OF $2,492,000.00; PROVIDING FOR THE
REFUNDING, PAYMENT AND DISCHARGE AT THEIR RESPECTIVE MATURITIES OF THE CITY'S OUTSTANDING
REVENUE BONDS PAYABLE OUT OF AND SECURED BY A PLEDGE OF REVENUES TO BE DERIVED FROM THE OPER
ATION OF THE CITY'S MUNICIPALLY OWNED AND OPERATED SEWER SYSTEM; AUTHORIZING THE DEPOSIT OF
FUNDS SO TO REDEEM SUCH OUTSTANDING BONDS; AUTHORIZING THE IMPROVEMENT ANDEXTENSION OF SAI➢
SYSTEM BY THE CONSTRUCTION AND OTHER ACQUISITION OF ADDITIONAL SEWAGE COLLECTION AND TREAT-
MENT FACILITIES AND EVERYTHING NECESSARY OR INCIDENTAL THERETO; AUTHORIZING THE ISSUANCE OF
STTCH BONDS IN ANTICIPATION OF THE COLLECTION OF REVENUES OF SUCH SYSTEM FOR SUCH IMPROVE-
MENTS AND EXTENSIONS; PROVIDING THE FORM, TERMS AND CONDITIONS OF THE SEWER REFUNDING AND
IMPROVEMENT BONDS, THE MANNER OF THEIR EXECUTION, THE METHOD OF PAYING THEM, AND THE SECUR-
ITY THEREFOR; PROVIDING FOR THE COLLECTION AND DISPOSITION OF REVENUES AND TO BE DERIVED
FROM SAID SEWER SYSTEM; PROVIDING OTHER DETAILS CONCERNING THE REFUNDING AND IMPROVEMENT
BONDS, SAID SEWER SYSTEM, THE BONDS TO BE REFUNDED, AND FUNDS APPERTAINING THERETO, INCLUD-
ING BUT NOT LIMITED TO COVENANTS AND AGREEMENTS IN CONNECTION THEREWITH; RATIFYING ACTION
PREVIOUSLY TAKEN AND PROVIDING THE E'ffECTIVE DATE HEREOF."
The Assistant Mayoor asked if there were anyone present who had anything to say
n reference to the ordinancse before t he Council. No one indicated they desired to be heard
nd motion was made by Councilwoman Quinn, seconded by Councilman Guyer, that this ordinance
e placed on second reading by title only and that all rules of the Council which might pre-
ent, unless suspended, the final passage and adoption of said ordinance at this meeting, be
nd the same are hereby, suspended for t he purpose of permitting the firal passage and adopt -
of said ordinance at this meeting. Rojs7 wasr carl'7c7d resulting as foal'oiis.a� , Ayes:.
186
April 1, 1965
Councilmen Colwell McMillan Guyer and Councilwoman y Quinn. Absent: Councilmen Johnson,
excused. Nayes: None. The President declared the motion adopted.
Four members of the Council having voted in favor of said motion, the Assistant
Mayor declared the motion carried and the rules suspended.
No member of the Council having requested that the ordinance be read in full, sai
ordinance was read by the City Clerk by title only. Motion was made by Councilman Guyer, "s
i
seconded by Councilwoman Quinn, that said ordinance heretofore passed on first reading be
placed upon its final passage. Roll was called resulting as follows: Ayes: Councilmen
B
Colwell, McMillan, Guyer and Councilwoman Quinn. Absent: Councilman Johnson, exeused.
Nayes: None. The President declaredt he motion adopted.
The presiding officer declared the motion earried and said ordinance placed upon
it final pad.sage. Councilman Guyer moved that said ordinance be finally passed and adopted..
Councilwoman Quinn seconded the motion. Roll was called resulting as follows: Ayes:
Councllman : , Colwell, McMillan, Guyer and Councilwoman Quinn. Absent: Councilman
Johnson, excused. Nayes: None. The presiding officer thereupon declared that at least a
majority of the members present having voted in favor thereof, that said motion was carried
and the said ordinance duly passed and adopted.
Motion was made by Councilman Colwell, seconded by Councilwoman Quinn, that this
ordinance be numbered 15, 1965, and be finally published in the Fort Collins Coloradoan and
be recorded according to law. Roll was called resulting as follows: Ayes: Councilmen
Absent: Councilman Johnson, excused.
Colwell, McMillan, Guyer and Councilwoman QUITN./ Nayes: None. The President declared the
motion adopted.
The following ordinance was read in full on first reading on Thursday, March 11,
1965:
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municipally owned and operated utility, if said bonds
shall be payable solely out of revenue to be derived
n
from the operation of such utility.
and
WHEREAS, Section 6, Article IX of said Charter
provides in relevant part as follows:
"The Council shall by ordinance from time to time
fix, establish, maintain, and provide for the collec-
tion of such rates, fees, or charges for water and
electricity, and for water, sewer, and electric ser-
vice furnished by the City as will produce revenues
sufficient to pay the cost of operation and maintenance
of said utilities in good repair and working order; to
pay the principal of and interest on all bonds of the
City payable from the revenues of said utilities; to
provide and maintain an adequate fund for replacement
of depreciated or obsolescent property; to provide a
fund for the extension, improvement, enlargement, and
betterment of said utilities; to pay the interest on
and principal of any general obligation bonds issued
by the City to extend or improve said utilities. The
provisions hereof shall be subject at all times to the
performance by the City of all covenants and agreements
made by it in connection with the issuance, sale, or
delivery of any bonds of the City payable out of the
revenues derived from the operation of its water,
electric, and other utilities, whether such revenue
bonds be heretofore or hereafter issued.
aY is ie
"Any surplus revenue produced from the operation
of any utilities after meeting all the requirements
set forth above shall be paid into the general fund
of the City in lieu of taxes."
and
WHEREAS, the sole outstanding bonds payable from,
and the payment of which is secured by a pledge of, revenues
derived from the operation of the sewer system, or any part
a body corporate and politic and a home rule city with a
"Council -Manager government" pursuant to Article XX of the
Constitution of the State of Colorado and the Charter of the
City (herein sometimes designated as the "Charter"); and
WHEREAS, the City now owns, operates and maintains
a municipal sanitary sewer system (herein sometimes desig-
nated as the "sewerage facilities," as the "sewer system"
or merely as the "system"); and
WHEREAS, the City Council of the City (herein some-
times designated as the "Council") has determined, and does
hereby declare, that the interest of the City and of the in-
habitants thereof, and the public interest and necessity
demand the improvement aid extension of the municipally owned
and operated sewer system by the construction and other acqui-
sition of additional sewage collection and treatment facili-
ties and everything necessary and incidental thereto at a cost
which is estimated not to exceed $2,200,000.00, excluding any
cost to be defrayed from any source other than bond proceeds
(herein sometimes designated as the "Improvement Project"); and
WHEREAS, Section 20, Part II, Article I of the
Charter, as amended, provides in relevant part:
"Section 20. Indebtedness and Limitations.
Indebtedness and obligations against the City shall
be incurred and limited as provided in Article XI of
the Constitution of the State of Colorado; provided
that in determining the limitation of the City's power
to incur indebtedness there shall not be included bonds
issued to evidence debts contracted for supplying
water to such City or for the acquisition or extension
of public utilities, enterprises, works, or ways from
which the City will derive revenue; and provided fur-
ther, that no general obligation bonds shall be issued
without the vote of the taxpaying electors and no
revenue bonds shall be issued without the vote of the
qualified electors, except as follows:
"(c) The Council shall have the power to issue
bonds to finance the improvement or extension of a
Colorado. Bonds maturing from 1954 to 1967, both inclu-
sive, are redeemable at the option of the City on
March 1, 1953, and on any interest payment date there-
after. Any redemptions made prior to March 1, 1958,
shall be made at par and a premium of 2-1/2% of prin-
cipal. On March 1, 1958, and thereafter, redemptions
before maturity shall be made at par without premium.
Redemptions shall be made in inverse numerical order.
Said bonds are payable solely and only out of the net
revenue to be derived by the City from and through the
operation of the sewer system, and, if necessary, out
of the net revenue to be derived from the operation of
its water system. There are now outstanding and unpaid
bonds of said issue in the principal amount of $35,000.00,
consisting of bonds numbered 156 to 170, both inclusive,
maturing serially on the first day of March in the
year 1966, and bonds numbered 176 to 195, both inclu-
sive, maturing serially on the first day of March in
the year 1967; and
2. The "City of Fort Collins Sewer Improvement
Revenue Bonds, Series January 1, 1959" (herein some-
times designated as the "1959 revenue bonds"), issued
pursuant to Ordinance No. 36, 1958, finally adopted
and approved on the 26th day of November, 1958 (herein
sometimes designated as the "1959 bond ordinance"),
authorized and issued in the original principal amount
of $300,000.00, bearing date as of the first day of
January, 1959, consisting of 300 bonds in the denomina-
tion of $1,000.00 each, numbered from 1 to 300, both
inclusive, bearing interest until their respective
maturities at the rate of three and one -quarter per
centum (3-1/47) per annum, payable semiannually on
the first days of January and July in each year, com-
mencing on the first day of July, 1959, and being
numbered and maturing serially in regular numerical
order on the first day of January in each of the
designated years, as follows:
thereof, are the bonds validly issued pursuant to proceed-
ings duly had and taken of the following issues (herein
sometimes collectively designated as the 'outstanding
bonds"):
1. The City of Fort Collins Sewer_ and Water
Revenue Bonds, dated March 1, 1948 (herein sometimes
designated as the "1948 revenue bonds"), issued pur-
suant to Ordinance No. 5-1948, finally adopted and
approved on the 24th day of June, 1948 (herein some-
times designated as the "1948 bond ordinance") author-
ized and issued in the original principal amount of
$195,000.00, consisting of 195 bonds in the denomina-
tion of $1,000.00 each, numbered consecutively from
1 to 195, both inclusive, bearing interest at the rate
of two and three -fourths per centum (2-3/4%) per annum,
payable semiannually on the first days of March and
September of each year, according to interest coupons
attached to said bonds, and being numbered and matur-
ing serially on March 1, as follows:
Bond Numbers Amounts Years
(A 1A Inclusive) Maturing Maturing
1 - 5 $5,000.00 1949
6 - 10 5,000.00 1950
11 - 15 5:000.00 1951
16 - 20 5,000.00 1952
21 - 25 5,000.00 1953
26 - 30 5,000.00 1954
31 - 35 5,000.00 1955
36 - 40 5,000.00 1956
41 - 45 5,000.00 1957
46 - 51 6,000.00 1958
52 - 57 6,000.00 1959
58 - 63 6,000.00 1960
64 - 80 17,000.00 1961
81 - 98 18,000.00 1962
99 - 117 19,000.00 1963
118 - 136 19,000.00 1964
137 - 155 19,000.00 1965
156 - 175 203000,00 1966
176 - 195 202000,00 1967
Both principal of and interest on said bonds are pay-
able in lawful money of the United States of America,
at the office of the City Treasurer in Fort Collins,
EN
bonds or for any other purpose, with the result that the
Bond Numbers Amounts
(A nc u� live) Maturing
Years
wring
revenues to be derived from the operation of the system may
1 - 6 $63000,00
now be pledged lawfully and irrevocably for the redemption
7 - 12 6,000.00
1960
1961
of the bonds
nd herein authorized (herein sometimes designated
( ei s g
13 - 19 72000.00
_
ZO 26
1962
as the "1965 revenue bonds," as the "refunding and improve-
71000,00
27 - 34 8,000,00
1963
1964
ment bonds," or merely as the "bonds"); and
35 - 43 9,000o00
_
44 57
1965
14 000 oQ0
1966
WHEREAS, Article 52 of Chapter 139, Colorado
58 - 68 11,000°00
1967
Revised Statutes 1963 (commonly designated as the "Water and
e000.00
69 - 99 31 100 - 131
32,000.00
11968
969
Sewer Revenue Bond Act of Colorado" and herein sometimes
132 - 164 33,000,00
1970
designated merely as the "Bond Act") authorizes any Colorado
165 - 197 33
198 - 231
1971
)000.00
34000.00
1972
municipality, including the City, to issue sewer refunding
232 - 265 34,000.00
1973
revenue bonds to refund, pay or discharge all or any part
266 - 300 35,000.00
1974
of its outstanding sewer revenue bonds, theretofore or
bonds numbered 132 to 300, both inclusive, maturing on
thereafter issued thereunder or under any other law, includ-
and after the first day of January, 1970, being
subject
ing any interest thereon, in arrears or about to become due,
to prior redemption, at the option of the City ,of Fort
or for the purpose of reducing interest costs or effecting
Collins, in inverse numerical order, on the first
day
other economies or of modifying or eliminating restrictive
of January, 1969, or on any interest payment date
contractual limitations appertaining to the issuance of
thereafter prior to maturity, upon payment of the prin-
additional bonds or to any municipal sewerage facilities as
cipal amount thereof, plus accrued interest to the
provided in the Bond Act; and
redemption date, and a premium consisting of three per
WHEREAS, the Bond Act authorizes the acquisition,
centum (3%) of such principal amount, the 1959 revenue
construction, reconstruction, lease, improvement, better-
bonds being:payable both as to principal and interest
me -at and extension of any sewerage facility by the City and
solely from the net revenues derived from the operation
the issuance of revenue bonds to pay in whole or in part
of the municipal sewer system, in lawful money of the
the cost thereof; and
United States of America, without deduction for exchange
WHEREAS, Section 139-52-12(5), Bond Act, provides
or collection charges, at the office of the Director
in substance that bonds for refunding and bonds for any
of Finance and ex-officio City Treasurer, Fort Collins,
other purpose or purposes authorized in Article 52, Chapter
Colorado, of which issue there are now outstanding and
139, C.R.S., 1963, may be issued separately or issued in
unpaid bonds in the principal amount of $257,000.00,
combination in one series or more; and
consisting of bonds numbered 44 to 300, both inclusive,
WHEREAS, Section 139-52-12(4), Bond.Act,
maturing serially on the first day of January in each
'i provides that refunding revenue bonds may be made payable
of the years 1966 to 1974, both inclusive;
from any revenues derived from the operation of any water
and
-
facilities or sewerage facilities or of both water facili-
WHEREAS, except for the 1948 revenue bonds and the
ties and sewerage facilities comprising a joint water and
1959 revenue bonds, the City has never pledged nor in any way
sewer system, notwithstanding the pledge of any such reve-
hypothecated the revenues derived or to be derived from the
nues for the payment of the outstanding bonds issued by the
operation of the sewer system to the payment of outstanding
municipality.which are to be refunded is thereby modified;
=__? and
-
Act as from time to time amended) in bills, certifi-
cates of indebtedness, notes, bonds, or similar obli-
gations of, or the principal and interest of which are
unconditionally guaranteed by, the United States of
America.;
(2) That by issuing Subseries R of the 1965
revenue bonds for the purpose of refunding, paying
and discharging the outstanding bonds as herein pro-
vided, the City will:
(a) Reduce substantially the interest costs
of the outstanding bonds, which obligations are
to be re -evidenced by Subseries R of the 1965
revenue bonds, and
(b) Effect economies in the issuance of
that portion of 1965 revenue bonds the proceeds
of which will be used to improve and extend the
sewer system (herein sometimes designated as
"Subseries I"), and
(c) Eliminate or otherwise modify restric-
tive contractual limitations appertaining to the
outstanding bonds and to the sewer system to the
best advantage of the City;
(3) That each 1948 revenue bond and 1959 revenue
bond shall mature within ten years from the date of the
issuance of the 19.65 revenue bonds;
(4) That the maturity of no 1948 revenue or 1959
revenue bond to be refunded will be extended over fif-
teen (15) years;
(5) That the interest on no 1948 revenue bond or
1959 revenue bond to be refunded will be increased by
the issuance of the 1965 revenue bonds herein authorized;
(6) That bonds numbered R-1 to R-9, both inclu-
sive, of Subseries R of the 1965 revenue bonds will be
issued on terms at least as favorable to the City as
the outstanding 1948 revenue bonds and bonds numbered
R-9 to R-60, both inclusive, of Subseries R of the
1965 revenue bonds will be issued on terms at least
as favorable to the City as the outstanding 1959
revenue bonds;
WHEREAS, the Council has determined and does hereby
declare that it is necessary to pledge only the revenues to
be derived from the operation of the City's sewer system as
security for the 1965 revenue bonds to be issued and not to
pledge any revenues of the City's water system; and
WHEREAS, such pledge of sewer revenues would have
to be junior in lien to the 1948 revenue bonds and the 1959
revenue bonds by reason of the restrictive contractual limi-
tations of the 1948 bond ordinance and the 1959 bond ordi-
nance, thereby increasing the cost to the City of issuing
bonds to effect improvements and extension to its sewer
system; and
WHEREAS, the interest costs on the refunding por-
tion of the 1965 revenue bonds will not be greater than the
interest costs on the 1948 revenue bonds and the 1959 revenue
bonds; and
WHEREAS, the Council has considered, found, and
determined, and does hereby declare:
(1) That the City proposes to pay after the first
day of June, 1965, the interest on and the principal of
1948 revenue bonds numbered 156 to 170, both inclusive,
and 176 to 195, both inclusive, in the aggregate princi-
pal amount of $35,000.00, and the interest on and the
principal of 1959 revenue bonds numbered 44 to 300,
both inclusive, in the aggregate principal amount of
$257,000.00, at their respective maturities, with
$292,000.00 of the proceeds of the 1965 revenue bonds
(herein sometimes designated as "Subseries R"),
together with the revenues derived prior to their
delivery from the operation of the sewer system, and
available for use as herein provided, to the extent
necessary, including but not necessarily limited to
moneys accumulated in any bond sinking fund and any
reserve fund for the designated outstanding 1948 reve-
nue bonds and 1959 revenue bonds (excluding operation
and maintenance funds) and interest or other yield
from the investment and any reinvestment of the pro-
ceeds of Subseries R (except as limited by the Bond
7
(12) "Consulting Engineer" means the City
Engineer, as herein defined, or any registered or
licensed professional engineer, or firm of such
engineers, having a wide and favorable repute for
skill and experience in the field of designing,
preparing plans and specifications for, and
supervising construction of sewer systems and
facilities, entitled to practice and practicing
as such under the laws of the State of Colorado,
retained and compensated by the City, but (except
for the City Engineer) not in the regular employ
of the City.
(13) "Coupons" means those issued hereunder
and evidencing the interest on the applicable bond
or bonds.
(14) "Director of Finance" means the Director
of Finance who is executive officer of the Depart-
ment of Finance pursuant to Section 22, Part III,
Article V of the Charter and who is in effect the
City Treasurer.
(15) "Escrow Agent" means the commercial
bank and trust company designated as The First
National Bank , located in the City of
Fort Collins, County of Larimer and State of
Colorado, as stated in paragraph B of Section 16
hereof.
(16) "Event of default" means any of the
events stated in Section 35 hereof.
(17) "Federal securities" means (except.as
limited by Section 139-52-12(3),'Bond Act,.as-from
time.to time amended) the bills, certificates of
indebtedness, notes, bonds, or similar obligations
which are direct obligations of, or the principal
and interest of which obligations are uncondition-
ally guaranteed by, the United States of America,
as provided in paragraph B of Section 20 hereof.
specifically cited as Sections 139-52-1 to 139-52-17,
both inclusive, Colorado Revised Statutes 1963.
(2) "Bond Fund" or "1965 Bond Fund" means
the "City of Fort Collins, Colorado, Sewer Refund-
ing and Improvement Revenue Bonds, Series June 1,
1965, Interest and Bond Retirement Fund," created
in paragraph B of Section 19 hereof.
(3) "Bonds," "1965 revenue bonds," or "refund-
ing and improvement bonds" means those issued
hereunder and consists of the Improvement Bonds,
as herein defined (also design ted as "Subseries I")
and the -Refunding Bonds, as herein defined (also
designated as "Subseries R"). The 1965 revenue
bonds (consisting of both designated subseries)
are designated as the "City of Fort Collins, Colo-
rado, Sewer Refunding and Improvement Revenue
-
Bonds, Series June.1, 1965."
(4)' "Charter" means the Charter of the
City of Fort Collins, Colorado, adopted October 5,
1954, as amended.
(5) "City" means the.City of Fort Collins,
in the County of Larimer and State of Colorado.
(6) "City Clerk" means the de facto or
de jure City Clerk of the City.
(7) "City Council" or "Council" means the
city council of the City, or any succeeding legis-
lative body of the City.
(8) "City Engineer" means the de facto or
de jure head of the Department of Public Works and
ex-officio City Engineer.
(9) "City Manager" means the de facto or
de jure city manager of the City.
(10) "Council" means City Council.
(11) "Construction Fund" or "1965 Construc-
tion Fund" means the City of Fort Collins, Colo-
rado, Sewer Refunding and Improvement Revenue
Bonds, Series June 1, 1965, Construction and Other
Acquisition Fund," created in Section 16D hereof.
6A
(b) To satisfy all liens of the outstanding
1948 revenue bonds and 1959 revenue bonds on any
revenues derived or to be derived from the opera-
tion of the system or any part thereof, and all
pledges of such revenues to secure the payment
thereof.
and
WHEREAS, it is desirable to authorize 1965 revenue
bonds in the aggregate principal amount of $2,492,000.00,
the proceeds of Subseries R in the aggregate principal amount
of $292,000.00 to be applied to the refunding of the out-
standing bonds, the balance, being the proceeds of Subseries
I in the aggregate principal amount of $2,200,000.00, to
be used for effecting the improvement and extension of the
City's sewer system, and to authorize the public sale of
Subseries R and Subseries I to the highest and best bidder
for each subseries, but in no event for less than par, and
in all cases to the best advantage of the City.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF
THE CITY OF FORT COLLINS:
Section 1. Short Title. That this ordinance may
be designated by the short title "6-1-65 sewer revenue bond
ordinance."
Section 2. Meanings and Construction.
A. Definitions. That the terms in this section
defined for all purposes of this ordinance and of any
ordinance amendatory hereof or supplemental hereto, or
relating hereto, and of any instrument or document
appertaining hereto, except where the context by clear
implication otherwise requires, shall have the meanings
herein specified:
(1) "Bond Act" means the act authorizing
the issuance of the bonds herein authorized,
which act is commonly designated as the "Water
and Sewer Revenue Bond Act of Colorado," is
sometimes cited as Article 52, Chapter 139,
Colorado Revised Statutes 1963, and is more
(7) That the principal amount of Subseries R of
the 1965 revenue bonds representing the portion of the
proceeds applied to refunding shall not exceed the out-
standing principal amount of the 1948 revenue bonds
and 1959 revenue bonds to be refunded;
(8) That the proceeds of Subseries R of the 1965
revenue bonds shall be placed in escrow to be applied
to the payment of the 1948 revenue bonds and the 1959
revenue bonds to be refunded at the dates heretofore
provided, upon their presentation therefor;
(9) That, except as limited by the Bond Act, as
from time to time amended, the escrowed proceeds, pend-
ing such use, shall be invested and possibly reinvested
in bills, certificates of indebtedness, notes, bonds,
or similar obligations of, or the principal and inter-
est of which are unconditionally guaranteed by, the
United States of America;
(10) That such escrowed proceeds and investments,
together with interest or other yield to be derived
from such investments, shall be in an amount at all
times sufficient to pay the outstanding 1948 revenue
bonds and 1959 revenue bonds to be refunded as they
become due, as aforesaid, as to principal and interest
and any charges of the escrow agent payable therefrom;
(11) That the limitations imposed in the Bond Act
and the Charter of the City of Fort Collins upon the
issuance of the 1965 revenue bonds have herein been met;
and
(12) That it is one of the specific intents and
purposes of this ordinance:
(a) To authorize the issuance of the 1965
revenue bonds in such manner as not to affect
adversely the rights or remedies of any owner or
holder of any outstanding 1948 revenue bond or
1959 revenue bond, nor to affect adversely the
security pledged to the payment thereof, and
OD
(25) "Income" means "revenues," as herein
(18) "Fiscal Agent" means Boettcher and
defined.
Company, Denver, Colorado, which firm has been
(26) "Independent Accountant" means any regis-
employed by the City as fiscal advisor in con-
nection with the "bonds," as herein defined, and
tered accountant, any certified public accountant,
cer-
also means any successor, direct or intermediate,
or firm of such registered accountants or such
of that firm.
tified public accountants, or of both, as determined
(19) "Fiscal Year" for the this
at the option of the City, duly licensed to practice
purposes of
ordinance, means the twelve (12) months commencing
and practicing as such under the laws of the State
on the first day of January of any calendar year
of Colorado, appointed and•paid by the City:
and ending on the last day of December of the
(1) Who is, in fact, independent and not
same year, as provided in Section 17 hereof and
under the domination of the City,
Section 1, Part I. Article V, of the Charter.
(2) Who does not have any substantial
(20) "Gross income" or "gross revenues"
interest, direct or indirect, with the City,
means "revenues," as herein defined.
and
"Hereby," " � " "hereinafter,"
(21) Hereb herein,"'hereinahove, hereinafter,
(3) Who is not connected with the City as
„ „ "hereof," " „
hereinbefore, hereof, and hereunder, or any
an officer or employee of the City, but who may
similar term refer to this ordinance and not solely
be regularly retained to make annual or similar
to the particular portion thereof in which such
audits of the books or records of the City.
word is used; heretofore means before the adop-
"heretofore"
(27) Insured Bank" means a bank which is a
tion of this ordinance; and "hereafter" means after
member of the Federal Deposit Insurance Corporation.
the adoption of this ordinance.
(28) "Mayor„ means the de facto or de jure
(22) "Holder" or any similar term when used
Mayor of the City.
(29) 'Minimum Reserve" means the amount to be
in conjunction with any coupons or bonds, means
deposited, accumulated and maintained in the 1965
the person in possession and the apparent owner of
the designated item.
Reserve Fund by paragraph C of Section 19 hereof,
which amount is the sum of $180,000.00.
(23) "Improvement Bonds" means that portion
(30) „ Net revenues„ or „ net income„ means the
of the 1965 revenue bonds which is designated as
revenues after deducting "operation and maintenance
Sub series I as herein defined.
(24) "Improvement Project" means the improve-
expenses."
(31) "Newspaper" means a newspaper in
ment and extension of the municipally owned and
printed
operated sewer system by the construction and other
the English language, published at least once each
calendar week, and of general circulation in the
acquisition of additional sewage collection and
City.
treatment facilities and everything necessary or
(32) "1959 Bond Fund" means the "City of Fort
incidental thereto in the manner herein provided,
P '
from the proceeds of Subseries I of the 1965
Collins Sewer Improvement Revenue Bonds, Series
January 1, 1959, Interest and Bond Retirement Fund"
revenue bonds.
created in Section 11E. of the 1959 bond ordinance.
8
(44) "Operation and maintenance expenses"
(or a phrase of similar import) means all reason-
able and necessary current expenses of the City,
paid or accrued, of operating, maintaining and
repairing the system; and the term may include
at the City's option (except as limited by law),
without limiting the generality of the foregoing,
legal and overhead expense of the various city
departments directly related and reasonably allo-
cable to the administration of the system, insur-
ance premiums, the reasonable charges of any
depositary bank or paying agent, contractual ser-
vices, professional services required by this
ordinance, salaries and administrative expenses,
labor, and the cost of materials and supplies used
for current operation, but shall not include any
allowance for depreciation, liabilities incurred
by the City as the result of its negligence in
the operation of the system, or other ground of
legal liability not based on contract, and shall
not include the costs of improvements, extensions,
enlargements or betterments, or any charges for
the accumulation of reserves for capital replace-
ments.
(45) "Outstanding" when used with reference
to bonds of the City and as of any particular
date, means all bonds of the City payable from
revenues of the system and theretofore and there-
upon being executed and delivered, except:
(a) Any bond cancelled or paid by or
on behalf of the City at or before said
date; and
(b) Any bond for the payment or the
redemption of which money equal to the prin-
cipal amount thereof, any prior redemption
premium due in connection therewith, and
interest thereon to the date of maturity or
(33) "1959 bond ordinance" means Ordinance
No. 36, 1958, by which the 1959 revenue bonds were
authorized to be issued.
(34) "1959 Reserve Fund" means the "City of
Fort Collins Sewer Improvement Revenue Bonds,
Series January 1, 1959, Reserve Fund," created in
Section 11F of the 1959 bond ordinance.
(35) "1959 revenue bonds" means the "City
of Fort Collins Sewer Improvement Revenue Bonds,
Series January 1, 1959," in the original principal
amount of $300,000.00, dated January 1, 1959, and
issued pursuant to the 1959 bond ordinance, of
which 1959 revenue bonds in the amount of
$257,000.00 are still outstanding.
(36) "1948 Bond Fund" means the "Sewer and
Water Bond Fund" created in Section 6 of the 1948
bond ordinance.
(37) "1948 bond ordinance" means Ordinance
No. 5-1948, by which the 1948 revenue bonds were
authorized to be issued.
(38) "1948 Reserve Fund" means the 11Reserve
Fund" created in Section 6(c) of the 1948 bond
ordinance.
(39) "1948 revenue bonds" means the City of
Fort Collins ,Serer and Water Revenue Bonds, in the
original principal amount of $195,000.00, dated
March 1, 1948, and issued pursuant to the 1948
bond ordinance, of which 1948 revenue bonds in the
amount of $35,000.00 are still outstanding.
(40) "1965 Bond Fund" means the "Bond Fund,"
as herein defined.
(41) "1965 Construction Fund" means the
Construction Fund, as herein defined.
(42) "1965,revenue bonds" means "bonds," as
herein defined.
(43) "1965 Reserve Fund11 means the "Reserve
Fund," as herein defined.
Refunding Fund," created in paragraph B of Section
16 hereof.
(55) "Refunding Project" means the refunding,
payment and discharge, at the times and in the
manner herein provided, of the 1948 bonds and the
1959 bonds in the total amount of $292,000,00.
(56) "Reserve Fund" or "1965 Reserve Fund"
means the "City of Fort Collins, Colorado, Sewer
Refunding and Improvement Revenue Bonds, Series
June 1, 1965, Reserve Fund," created in paragraph
C of Section 19 hereof.
(57) "Revenues," "gross revenues," "income,"
or "gross income" from the system means all income
and revenue derived by the City from the operation
of the sewer system, or any part thereof, whether
resulting from improvements, extensions, enlarge-
ments, repairs or betterments thereto, or other-
wise, and includes all revenues received by the
City, or any municipal corporation succeeding to
the rights of the City, from the system and from
the sale and use of sewer service and sewerage
facilities to the inhabitants of what is now the
City (including all territorial annexations which
may be made while the bonds herein authorized or
any part thereof are outstanding), or from the sale
and use of sewer service and sewerage facilities
by means of the system owned and operated by the
City as the same may at any time exist to serve
customers outside the city limits as well as
customers within the city limits, provided, however,
that the City's existing sewer trunk line assess-
ments, sewer main line assessments, and sewer tap
fees and the plant investment fees which the City
will impose by Ordinance No. 17.lgA to be finally
passed and adopted on the �5 day of April
1965, may, at the option of the'City, not be included
in "gross revenues" but may be credited to the
City Is existing Sewer Capital Improvement Fund.
to any redemption date, shall have theretofore
been deposited with the Paying Agent or a
bank as provided in Section 39 hereof.
(46) 11Parity bonds' or "parity.obligations"
means bonds or obligations payable from revenues
of the system on a parity with the 1965 revenue
bonds.
(47) "Paying Agent" means the office of the
Director of Finance who serves as the ex-officio
City Treasurer, in the City of Fort Collins,
Colorado.
(48) "Person" means not only a natural per-
son, corporation or other legal entity, but also
two or more natural persons, corporations or other
legal entities acting jointly as a firm, partner-
ship, unincorporated association, joint adventurers,
or otherwise.
(49) "Project" means the Refunding Project
and Improvement Project together, as herein defined.
(50) "Purchaser"•means the investment banking
firm or other person submitting the best bid for
any subseries or other block herein authorized
and separately offered for sale, which bid is
hereafter accepted by the City; or if any sub -
series or other block be purchased by more than
one person, "Purchaser" means the manager of the
purchasing syndicate.
(51) "Redemption date" means the date fixed
for the redemption prior to their respective
maturities of bonds in any notice of redemption.
(52) "Refunding and Improvement Bonds1° means
"bonds," as herein defined.
(53) "Refunding bonds" means that portion of
the 1965 revenue bonds which is designated as
Subseries R, as herein defined.
(54) "Refunding Fund" means the "City of
Fort Collins, Colorado, Sewer Refunding and
revenues of the system superior to the lien of
the 1965 revenue bonds.
(65) "System" means the "sewer system,"
as herein defined.
B. Construction. That this ordinance, except where
the context by clear implication herein otherwise
requires, shall be construed as follows:
(1) Definitions imply both singular and
plural.
(2) Pronouns include both singular and
plural and cover all genders.
(3) Any percentage of bonds is to be figured
on the unpaid principal amount thereof then out-
standing.
Section 3. Ratification. That all action hereto-
fore taken (not inconsistent with the provisions of this
ordinance) by the Council and the officers of the City
directed toward:
(a) The Refunding Project and the Improvement
Project, and
(b) The issuance of the City's 1965 revenue bonds
for those purposes,
be,and the same hereby is, ratified, approved and confirmed,
Section 4. Authorization of Refunding Project.
That the City's outstanding 1948 revenue bonds and 1959
revenue bonds shall be, and the same hereby are ordered to
be, refunded, paid and discharged, at the times and in the
manner herein provided; and the Refunding Project is hereby
so authorized.
Section 5. Authorization of Improvement Project.
That the system shall be so improved and extended by the
expenditure of not to exceed $2,200,000.00, excluding any
cost of the Improvement Project defrayed or to be defrayed
by any source other than revenue bond proceeds, and that
said improvements and extensions have heretofore been and
hereby are authorized, and that the Improvement Project is
hereby so authorized.
(58) "Sewer Capital Improvement Fund" means
the City's existing fund for capital improvements
heretofore created.
(59) "Sewer Fund" or "Income Fund" means the
"City of Fort Collins, Colorado, Sewer System
Gross Income Fund" created in Section 18 hereof.
(60) "Sewer System," "sewerage facilities,"
"sewage facilities," or "system" means the City's
municipally owned sanitary sewer system, consist-
ing of all properties, real, personal, mixed, or
otherwise, now owned or hereafter acquired by the
City, through purchase, construction, or otherwise,
and used in connection with the sanitary sewer
system of the City, and in any way appertaining
thereto, whether situated within or without the
city limits, or both within and without the city
limits.
(61) "Subordinate bonds" or "subordinate
obligations" means bonds or obligations payable
from revenues of the system subordinate and junior
to the lien of the 1965 revenue bonds.
(62) "Subseries I" of the 1965 revenue bonds
means that portion thereof to be issued for the
purpose of improving and extending the municipally
owned and operated sewer system by the construction
and other acquisition of additional sewage collec-
tion and treatment facilities and everything neces-
sary or incidental thereto; and said bonds are
sometimes designated as the "Improvement Bonds,"
(63) "Subseries R" of the 1965 revenue bonds
means that portion thereof to be issued for the
purpose of refunding paying and discharging those
outstanding 1948 revenue bonds and 1959 revenue
bonds maturing on and after ,dune 1, 1965, in the
principal amount of $292,000.00; and said bonds
are sometimes designated as the "Refunding Bonds."
(64) "Superior bonds" or "superior obliga-
tions" means bonds or obligations payable from
paid in full.. The 1965 revenue bonds also consist of two
subseries designated as Subseries
I and as Subseries R, as
follows:
A. Subseries I.
The bonds comprising
Subseries I
shall consist of 440 bonds
in the denomination of
$5,000.00 each, issued
for the Improvement
Project in
the principal amount of
$2,200,000,00, numbered
con-
secutively in regular numerical order from
I-1 to
I-440, both inclusive,
bearing interest at
a rate or
rates of not exceeding
four and one-half per centum
(4-1/27.) per annum from their date until their respec-
tive maturities, interest being payable on
the first
day of December, 1965,
and semiannually,thereafter on
the first days of June
and December in each year, and
the Improvement Bonds
shall be numbered and mature
serially in regular numerical order on the
first day
of December in each of the designated amounts and years,
as follows:
Bond Numbers
Amounts
Years
I (All Inclusive)
Maturing
Maturing
I- 1 to 1- 10
$50,000.00
1967
I- 11 to I- 21
55,000.00
1968
I- 22 to I- 33
60,000.00
1969
I- 34 to I- 46
65,000.00
1970
I- 47 to I- 59
65,000.00
1971
I- 60 to I- 73
703000.00
1972
I- 74 to. I- 88
75,000.00
1973
I- 89 to 1-112
120,000.00
1974
1-113 to 1-137
125,000.00
1975
1-138 to 1-162
125,000.00
1976
1-163 to 1-188
130,000.00
1977
1-189 to 1-216
140 X0.00
1978
1-217 to 1-245
145,000.00
1979
1-246 to 1-275
150,000.00
1980
1-276 to 1-306
155,000.00
1981
1-307 to 1-338
160,000.00
1982
1-339 to 1-371
165,000.00
1983
1-372 to 1-405
170,000.00
1984
1-406 to 1-440
175,000.00
1985
and
B. Subseries R. The bonds comprising Subseries R
shall consist of 60 bonds in the denomination of $5,000.00
each, except for bonds numbered R-1 and R-2, which shall
be in the denomination of $1,000.00 each, issued for the
Section 6. Estimated Cost of Projects. That the
estimated cost of the Refunding Project is estimated not to
exceed $292,000.00 and that the estimated cost of the
Improvement Project is estimated not to exceed $2,200,000.00,
excluding in each instance, any such cost defrayed or to be
defrayed by any source other than bond proceeds.
Section 7. Authorization of Bonds. That for the
purpose of protecting the public health, conserving the
property and advancing the general welfare of the citizens
of the City, and for the purpose of defraying the cost of
the Project, it is hereby declared necessary that the City
make and issue, and there are hereby authorized to be
issued, pursuant to the provisions of the Bond Act, the
"City of Fort Collins, Colorado, Sewer Refunding and Improve-
ment Revenue Bonds, Series June 1, 1965," in the principal
amount of $2,492,000.00, payable both as to principal and
interest solely out of the net income derived from the
operation of the sewer system; and the City pledges irrevoc-
ably, but not necessarily exclusively, such net income to
the payment of the bonds and the interest thereon, the pro-
ceeds thereof to be used solely for the Project, as herein
provided.
Section 8. Bond Details. That the 1965 revenue
bonds shall be dated as of the first day of June, 1965, be
payable to bearer, be payable from the revenues herein desig-
nated and pledged to the payment thereof, and.beariintdrest at
a rate or rates to be hereafter established after the public
sale of the 1965 revenue bonds, interest being evidenced
until their respective maturities by only one set of interest
coupons payable to bearer and attached to the 1965 revenue
bonds, both the principal of and the interest on the 1965
revenue bonds being payable in lawful money of the United
States of America, without deduction for exchange or collec-
tion charges, at the Paying Agent. In the event any 1965
revenue bond shall not be paid upon its presentation at
maturity, it shall continue to draw interest at the rate of
six per centum (6%) per annum until the principal thereof is
9
E
cific written consent to such
redemption without the sPe a bonds, except as herein -
call by the holders of th°urPoses, including refunding,
after provided. For all d I-113 to 1-440$ both inclu-
Improvement Bonds numbere sive, maturing on and after the first of December,
irstday
to their
redemption 1975, shall be subject tO on of the City, in
at the opts y,
respective maturities, on the first day of December,
inverse numerical order, ayment date thereafter..privr
1974, or on any interest pof the principal amount of
to maturity, upon payment
each bond so redeemed; accrued interest thereon.to the
redemption date, and a premium consisting of one per
centum (1%) of the principal amount of each -bond so
redeemed.
B. Subseries R. That for all purposes, Refunding
Bonds numbered R-1 to R-60, both inclusive, maturing on
or before the first day of June, 1973, shall be subject
to redemption prior to their respective maturities,
at the option of the City, in regular numerical order,
on the first day of December, 1965, or on any interest
payment date thereafter prior to maturity, upon payment
of the principal amount of each Refunding Bond so
redeemed, accrued interest thereon to the redemption
date, and a premium consisting of five per centum
(5%) of the principal amount of each bond so redeemed.
An option to call the bonds of either subseries may be
exercised independently of any option to call bonds of the
other subseries.
Section 10. Notice of Prior Redemption. That
notice of any prior redemption of any bonds of any subseries
shall be given by the Director of Finance in the name of
the City:
(a) By publication of such notice at least once,
not less than thirty days prior to the redemption date,
in a newspaper, as herein defined, and
(b) By sending a copy of such notice by regis-
tered, first-class, postage prepaid mail, at least
thirty days prior to the redemption date:
Refunding Project in the principal amount of $292,000.00,
numbered consecutively in regular numerical order from
R-1 to R-60, both inclusive, refunding bonds numbered
R-1 to R-15, both inclusive, bearing interest at a
rate or rates not exceeding two and three -fourths per
centum (2-3/47) per annum, and refunding bonds numbered
R-16 to R-60, both inclusive, bearing interest at a
rate or rates of'not exceeding three and one-fourth per
centum (3-1/47) per annum, interest being payable on
the first day of December, 1965, and semiannually there-
after on the first days of June and December in each
year, and the Refunding Bonds shall be numbered and
mature serially in regular numerical order on the first
day of June in each of the designated amounts and years,
as follows:
Bond Numbers Amounts rears
(All Inclusive) Maturing Maturing
R- 1 to R- 8 $32,000.00 1966
R- 9 to R-15 35,000.00 1967
R-16 to R-22 35,000.00 1968
R-23 to 9-29 35,000.00 1969
R-30 to R-36 35,000.00 1970
R-37 to R-44 405000.00 1971
R-45 to R-52 40000.00 1972
R-53 to R-60 40:000.00 1973
Section 9. Prior Redemption.
A. Subseries I. That Improvement Bonds numbered
I-1 to I-112, both inclusive, maturing on and before
the first day of December, 1974, shall be subject to
redemption prior to their respective maturities, at
the option of the City, in regular numerical order, on
the first day of June, 1967, or on any interest payment
date thereafter prior to maturity, upon payment of the
principal amount of each bond so redeemed, accrued
interest thereon to the redemption date, and a premium
consisting of five per centum (5%) of the principal
amount of each Improvement Bond so redeemed. The
prior redemption option hereinabove provided in this
paragraph A of Section 9 shall not be exercised for
the purpose of refunding the bonds called for prior
shall be countersigned with the facsimile signature of
the Director of Finance, and shall be attested with the
facsimile signature of the City Clerk, with the facsim-
ile of the seal of the City affixed thereto. The inter-
est coupons appertaining thereto shall be executed and
authenticated by the facsimile signatures of said
officers. Said bonds and coupons bearing the signatures
of the officers in office at the time of the signing
thereof shall be the valid and binding obligations
of the City, notwithstanding that before the delivery
thereof and payment therefor any or all of the persons
whose signatures appear thereon shall have ceased to
fill their respective offices. The Mayor by the exe-
cution of the bonds and all of said officers by the exe-
cution of a signature certificate shall adopt as and
for their signatures the facsimiles thereof appearing
upon any of the bonds or coupons. In the event that
at the time of executing the bonds or a signature cer-
tificate the manual or facsimile signature of a
predecessor in office of any officer appears on the
bonds or coupons, said officer may, in like manner,
adopt as and for his own signature the manual or
facsimile signature of his predecessor.
B. Incontestable Recital in Bonds. That pursuant
to Section 139-52-13, Bond Act, each of the 1965 reve-
nue bonds shall recite that it is issued under the
authority of the Bond Act; such recital shall conclus-
ively impart full compliance with all of the provi-
sions thereof; and each bond issued containing such
recital shall be incontestable for any cause whatsoever
after its delivery for value.
Section 13. Special Obligations. That all of
the bonds, together with the interest accruing thereon, and
any prior redemption premium, shall be payable and collec-
tible solely out of the net income to be derived from the
operation of the system, the income of which is so pledged;
the holder or holders thereof may not look to any general
or other fund for the payment of principal of and interest
(1) To the Purchaser of said subseries,
(2) To the Fiscal Agent, and
(3) To any successor of the Paying Agent,
as herein defined.
Such notice shall specify the number or numbers of the bond
or bonds to be so redeemed (if less than all are to be
redeemed) and the date fixed for redemption, and shall fur-
ther state that on such redemption date there will become
due and payable upon each bond so to be redeemed, at the
Paying Agent (designated by name), the principal amount
thereof, accrued interest to the redemption date, and the
stipulated premium, and that from and after such date inter-
est will cease to accrue. Notice having been given in the
manner hereinabove provided, the bond or bonds so called for
redemption shall become due and payable on the redemption
date so designated; and upon presentation thereof at the
Paying Agent, together with the appurtenant coupons maturing
subsequent to the redemption date, the City will pay the
bond or bonds so called for redemption.
Section 11. Negotiability. That, subject to the
provisions expressly stated or necessarily implied herein,
the 1965 revenue bonds hereby authorized shall be fully
negotiable and shall have all the qualities of negotiable
coupon paper, and the holder or holders thereof shall possess
all rights enjoyed by the holders of negotiable instruments
under the provisions of the Negotiable Instruments Law.
Section 12. Form and Execution of Bonds and
Coupons.
A. Method of Execution.
(a) That pursuant to Sections 139-52-12(6) and
139-52-4(7), Bond Act, the Mayor, Director of Finance,
and City Clerk shall each forthwith file with the
Secretary of State his manual signature certified by
him under oath.
(b) That thereafter each of the bonds shall be
executed in the name of and on behalf of the City and
authenticated with the manual signature of the Mayor,
(Form of Bond)
UNITED STATES OF AMERICA
STATE OF COLORADO COUNTY OF LARIMER
CITY OF FORT COLLINS
SEWER REFUNDING AND IMPROVEMENT REVENUE BOND
SERIES JUNE 1, 1965
SUBSERIES *R
No.
$5,000.00
**$1,000.00
The City of Fort Collins (herein sometimes desig-
nated as the "City"), in the County of Larimer and State of
Colorado, for value received, hereby promises to pay to the
bearer hereof, solely from the special funds provided there-
for, as hereinafter set forth, on the first day of ****December,
June,
19the principal sum of
FIVE THOUSAND DOLLARS
**ONE THOUSAND DOLLARS
and to pay from said special funds interest hereon from date
until maturity at the rate of
per centum ( %)
per annum, evidenced until maturity by only one set of
interest coupons, payable on the first day of December, 1965,
and semiannually thereafter on the first days of June and
December in each year, upon presentation and surrender of
this bond and the annexed interest coupons as they severally
become due. If upon presentation at maturity, payment of
this bond is not made as herein provided, interest shall
continue at the rate of six per centum (6%) per annum until
the principal hereof is paid in full. Both principal and
interest are payable in lawful money of the United States
of America, without deduction for exchange or collection
charges, at the office of the Director of Finance and
ex-officio City Treasurer, in Fort Collins, Colorado.
on such obligations, except the designated special funds
pledged therefor; and such bonds shall not constitute an
indebtedness nor a debt within the meaning of any consti-
tutional, charter, or statutory provision or limitation;
nor shall they be considered or held to be general obliga-
tions of the City.
Section 14. Form of Bonds and Coupons. That
the bonds and the coupons appertaining thereto shall be
in substantially the following form:
N im
This bond does not constitute a debt nor an
indebtedness of the City within the meaning of any consti-
tutional, charter, or statutory provision or limitation,
shall not be considered or held to be a general obligation
of the City, and is payable and collectible solely out of
the net income derived from the operation of the City's
municipally owned sewer system (herein sometimes designated
as the "system"), the income of which is so pledged; and the
holder hereof may not look to any general or other fund for
the payment of the principal of and interest on this obli-
gation, except the special funds pledged therefor. Payment
of the bonds of the series of which this is one and the
interest thereon shall be made solely from, and as security
for such payment there are pledged, pursuant to Ordinance
No. -, passed and adopted on the _ day of ,
1965, as supplemented, two special funds identified as the
"City of Fort Collins, Colorado, Sewer Refunding and Improve-
ment Revenue Bonds, Series June 1, 1965, Interest and Bond
Retirement Fund," and as the "City of Fort Collins, Colorado,
Sewer Refunding and Improvement Revenue Bonds, Series June 1,
1965, Reserve Fund," into which funds the City covenants
to pay respectively, from the revenues derived from the
operation of the sewer system, as therein defined, after
provision only for all necessary and reasonable expenses of
the operation and maintenance of the system, sums sufficient
to pay when due the principal of and the interest on the bonds
of the series of which this is one, and to create and main-
tain a reasonable and specified reserve for such purpose.
For a description of said funds and the nature and extent
of the security afforded thereby for the payment of the
principal of and the interest on said bonds, reference is
made to said ordinance. The bonds of the series of which
this is one are equitably and ratably secured by a lien on
the net revenues of the system, as therein defined; and said
bonds constitute an irrevocable and first lien (but not neces-
sarily an exclusively first lien) upon said net revenues. Bonds
in addition to the series of which this is one, subject to
This bond is one of a series of bonds which are sub-
ject to redemption prior to maturity. Bonds of Subseries I
maturing on and before the first day of December, 1974, are
subject to redemption prior to their respective maturities,
at the option of the City, in regular numerical order, on the
first day of June, 1967, or on any interest payment date
thereafter prior to maturity, upon payment of the principal
amount of each bond so redeemed, accrued interest thereon to
the redemption date, and a premium of five per centum (5%) of
the principal amount of each bond so redeemed. The prior
redemption option hereinabove provided shall not be exercised
for the purpose of refunding the bonds called for prior
redemption without the specific written consent to such call
by the holders of those bonds, except as hereinafter provided.
For all purposes, including refunding, bonds of Subseries I
maturing on and after the first day of December, 1975, are
subject to redemption prior to their respective maturities,
at the option of the City, in inverse numerical order, on the
first day of December, 1974, or on any interest payment date
thereafter prior to maturity, upon payment of the principal
amount of each bond so redeemed, accrued interest thereon to
the redemption date and a premium of one per centum (1%) of
the principal amount of each bond so redeemed. For all pur-
poses, bonds of Subseries R maturing on or before the first
day of June, 1973, are subject to redemption prior to their
respective maturities, at the option of the City, in regular
numerical order, on the first day of December, 1965, or on any
interest payment date thereafter prior to maturity, upon pay-
ment of the principal amount of each bond so redeemed, accrued
interest thereon to the redemption date and a premium of five
per centum'(5%) of the principal amount of each bond so
redeemed. An option to call bonds of one subseries may be
exercised independently of any option to call bonds of the
other subseries. Redemption shall be made upon not less than
thirty days' prior notice by publication and by mail in the
manner and upon the conditions provided in the ordinance
authorizing the issuance of this bond.
all
a
Subseries I are issued for the purpose of the improvement
and extension of the City's municipally owned and operated
sewer system by the construction and other acquisition of
additional sewage collection and treatment facilities and
everything necessary or incidental thereto. The bonds
comprising Subseries R are issued for the purpose of refund-
ing, paying and discharging the City's valid and outstand-
ing revenue bonds in the principal amount of $292;000.00,
payable out of and secured by a pledge of revenues to be
derived from the operation of the City's sewer system. The
bonds of said series are issued in conformity with the
Constitution and laws of the, State of Colorado, the Charter
of the City, and certain ordinances and resolutions of said
City duly passed and adopted prior to the issue hereof.
This bond is subject to the condition, and every
holder hereof by accepting the same agrees with the obligor
and every subsequent holder hereof, that (a) the delivery of
this bond to any transferee shall vest title in this bond
and in the interest coupons attached hereto in such trans-
feree to the same extent for all purposes as would the
delivery under like circumstances of any negotiable instru-
ment payable to bearer; (b) the obligor and any agent of
the obligor may treat the bearer of this bond as the absolute
owner hereof for all purposes, and shall not be affected by
any notice to the contrary; (c) the principal of and the
interest on this bond shall be paid, and this bond and each
of the coupons appertaining thereto are transferable, free
from and without regard to any equities between the obligor
and the original or any intermediate holder hereof, or any
set -offs or cross -claims; and (d) the surrender to the
obligor or any agent of the obligor of this bond and of each
of the coupons shall be a good discharge to the obligor for
the same.
It is further certified, recited and warranted
that all the requirements of law have been fully complied
With by the proper officers of the City in the issue of
this bond.
expressed conditions, may be issued and made payable from
said net revenues of the system and having a lien thereon
subordinate and junior to the lien, or subject to addi-
tional expressed conditions, having a lien thereon on a
parity with the lien, of the bonds of the series of which
this is one, in accordance with the provisions of said
ordinance.
This bond and the other bonds of the series of
which it is a part are issued under the authority of
Article 52, Chapter 139, Colorado Revised Statutes 1963,
which act is commonly designated as the "Water and Sewer
Revenue Bond Act of Colorado"; pursuant to Section 139-52-13
thereof such recital conclusively imparts full compliance
with all provisions of said act; and this bond issued con-
taining such recital is incontestable for any cause what-
soever after its delivery for value..
The City covenants and agrees with the holder of
this bond and with each and every person who may become the
holder hereof that it will keep and perform all of the
covenants of said ordinance, including, without limiting
the generality of the foregoing, its covenants against the
sale or mortgage of the system or any part thereof unless
provision shall be made for the payment of the principal of
and the interest on the bonds of the series of which this
is one, and including its covenants that it will fix, main-
tain and collect rates for services rendered by the system
sufficient to produce revenues or earnings sufficient to
pay the annual operation and maintenance expenses and an
amount equal to one hundred thirty per centum (130'/) of the
combined maximum annual principal and interest requirements
of the bonds and any other obligations payable annually from
any revenues of the system (excluding the reserves therefor).
This bond is one of a series of bonds of like
tenor, amount and date, except as to number,. purpose, inter-
est rate, prior redemption option and maturity. The bonds
of said series consist of two subseries designated as sub -
series I and Subseries R. respecrively. She bonds co pristr,g
a
(Form of Coupon)
Coupon
No.
On the first day of June,
December, 19_, unless the
bond to which this coupon is attached, if callable prior to
said date, is called for prior redemption, the City of Fort
Collins, in the County of Larimer and State of Colorado,
will pay to bearer in lawful money of the United States of
America at the office of the Director of Finance and ex-offi-
cio City Treasurer, in Fort Collins, Colorado, the amount
herein stated solely from and secured by a pledge of special
funds created from the net revenues derived from the opera-
tion of the sewer system of the City, and providing for the
payment of six months' interest on its City of Fort Collins,
Colorado, Sewer Refunding and Improvement Revenue Bond,
Series June 1, 1965, and bearing
Bond
No. R-
(For Facsimile Signature)
City Clerk
(For Facsimile Signature)
Mayor
(For Facsimile Signature)
Director o Finance
* (Insert appropriate prefix.)
(End of Form of Coupon)
IN WITNESS WHEREOF, the City of Fort Collins has
caused this bond to be executed and authenticated in its
name with the manual signature of the Mayor of the City of
Fort Collins and countersigned by the facsimile signature
of the City's Director of Finance and ex-officio City Treas-
urer, and attested with the facsimile signature of the City
Clerk, has caused the facsimile of the seal of the City to
be affixed hereon, and has caused the interest coupons
appertaining hereto to be executed with the facsimile signa-
tures of said officers, all as of the first day of June,
1965.
CITY OF FORT COLLINS
By (For Manual Signature)
Mayor
(FACSIMILE SEAL)
Attest:
(For Facsimile Si nature)
City Cler
Countersigned;
(For Facsimile Si nature)
Director o Finance
*(Indicate in each bond the appropriate letter
"I" or "R" indicating the subseries of which the bond
is a part; and use the same letter "I" or "R" as a
prefix before the bond number, e.g., "I-1" or "R-1.")
** (Insert in bonds numbered R-1 and R-2, maturing
on June 1, 1966.)
*** (Insert in all bonds of Subseries I.)
**' (Insert in all bonds of Subseries R.)
(End of Form of Bond)
9
bonds. Moneys shall be withdrawn by the Escrow Agent from the
Refunding Fund in sufficient amounts and times to permit the
payment without default of such principal and interest. The
Escrow Agent may also withdraw from the Refunding Fund the
amounts of its reasonable service charges in connection there-
with as the same accrue and become due, not, however, in a total
amount exceeding the amount deposited in the Refunding Fund
therefor. The -reasonable charges, if any, of any paying agent
for any of the outstanding bonds being refunded shall be prompt-
ly paid by the City as a cost of operating and maintaining the
system. Any moneys remaining in the Refunding Fund after the
redemption in full of the outstanding 1948 revenue bonds and
1959 revenue bonds or after adequate provision has been made
therefor, shall be applied to any lawful purpose or purposes,
as the Council may direct.
C. Insufficiency of Refunding Fund. That if for any
reason the amount in the Refunding Fund shall at any time be
insufficient to effect the purposes of the next preceding para-
graph B, the City shall forthwith, from the first available net
revenues derived from the operation of the system, deposit in
the Refunding Fund at least such additional moneys as shall be
necessary to pay the designated amounts of principal, interest
and service charges of the Escrow Agent in connection with the
Refunding Fund,
D. Construction Fund. That the proceeds received
from the sale of the bonds comprising Subseries I, in the amount
of $2,200,000.00, shall be deposited promptly upon the receipt
thereof in a separate account hereby created and to be known as
'i the "City of Fort Collins, Colorado, Sewer Refunding and Improve-
ment Revenue Bonds, Series June 1, 1965, Construction and Other
i
Acquisition Fund" (herein sometimes designated the "Construction
Fund" or as tine "1965 Construction Fund"). The moneys in the
Construction Fund, except as herein otherwise specifically pro-
vided, shall be used and paid out solely for the Improvement
Project. Moneys shall be withdrawn from the Construction Fund
for the Improvement Project only upon vouchers or checks drawn
and signed by the Director of Finance and the Assistant Director
of Finance. The account hereby created in this paragraph D of
Section 16 hereof, may be maintained as an account in the City's
existing Sewer Capital Improvement Fund, but shall be separately
Section 15. Bond Preparation, Execution and Deliv-
ery. That the Mayor, City Clerk and Director of Finance are
hereby authorized and directed to prepare and execute the bonds
as herein provided. When the bonds of each subseries or other
block separately offered for sale have been duly executed and
sold, the Director of Finance shall deliver them to the Pur-
chaser of said subseries or other block on receipt of the
agreed purchase price.
Section 16. Disposition of Bond Proceeds.
A. Accrued Interest and Premium. That all moneys
received as accrued interest at the time of delivery of the
bonds or any portion thereof from the sale thereof and any
premium therefor shall be deposited into the Bond Fund, to
apply on the payment of interest next due on the 1965 revenue
bonds payable therefrom.
B. Refunding Fund. That the proceeds received from
the sale of the bonds comprising Subseries R, in the amount
of $292,000.00, and, to the extent necessary, the revenues
derived prior to their delivery from the operation of the
system, and available for use as herein provided, including
but not necessarily limited to moneys accumulated in the 1948
Bond Fund, the 1948 Reserve Fund, the 1959 Bond Fund and the
1959 Reserve Fund (except for moneys sufficient to pay all
necessary expenses of maintaining and operating said sewer
system heretofore incurred) shall be deposited in a separate
escrow account hereby created and to be known as the "City of
Fort Collins, Colorado, Sewer Refunding and Improvement
Revenue Bonds, Series June 1, 1965, Refunding Fund" (herein
sometimes designated as the "Refunding Fund"), with The
First National Bank , in Fort Collins, Colorado
(herein sometimes designated as the "Escrow Agent"), in an
amount at all times at least sufficient, together with any
interest or other yield to be derived from the investment
and any temporary reinvestment of the deposits or any part
thereof in Federal Securities, as herein defined, to pay the
reasonable charges of the Escrow Agent in connection herewith,
and to pay the principal of and the interest on the outstand-
ing 1948 revenue bonds and 1959 revenue bonds hereinabove de-
signated to be refunded, paid and discharged, both accrued and
not accrued, as the same become due, to the respective matur-
ities of the designated 1948 revenue bonds and 1959 revenue
system as they become due and payable, and thereupon they
shall be promptly paid. Any surplus remaining at the end
of the Fiscal Year and not needed for operation and main-
tenance expenses shall be transferred to the Sewer Fund and
be used for the purposes thereof, as herein provided.
B. 1965 Bond Fund Payments. Secondly, from any
moneys remaining in the Sewer Fund, i.e., from the net in-
come cf the sewer system, there shall be deposited into a
separate account hereby created and to be known as the "City
of Fort Collins, Colorado, Sewer Refunding and Improvement
Revenue Bonds, Series June 1, 1965, Interest and Bond Re-
tirement Fund" (herein sometimes referred to as the "1965
Bond Fund" or as the "Bond Fund"), the following:
(1) Monthly, commencing on the lst day of
--June , 1965, an amount in equal monthly install-
ments necessary, together with any moneys therein and
available therefor, to pay the next maturing install-
ment of interest on the 1965 revenue bonds then out-
standing, and monthly thereafter commencing on said
interest payment date one -sixth of the amount neces-
sary to pay the next maturing installment of interest
on the outstanding 1965 revenue bonds.
(2) Monthly, commencing on the let day of
June 1965, an amount in equal monthly install-
ments necessary, together with any moneys therein and
available therefor, to pay the next maturing install-
ment of principal of the outstanding 1965 revenue
bonds, and monthly thereafter commencing on said prin-
cipal payment date one -twelfth of the amount necessary
to pay the next maturing installment of principal on
the 1965 revenue bonds.
C. 1965 Reserve Fund Payments. Thirdly, but concur-
rently with the payments required by the next preceding para-
graph B of this Section 19 hereof, except as provided in
paragraphs D and E of this Section 19, from any moneys re-
maining in the Sewer Fund, there shall be set aside and paid
monthly, commencing on the first day of the month following
the first or only date on which any of the 1965 revenue bonds
are delivered, at least $1
account hereby created an '675.00 per month into a separate
d to be known as the "City of Fort
accounted for. The City may, at its option, use proceeds real-
ized from the sale of the bonds comprising Subseries I, but only
to the extent necessary, for the purpose of paying interest
accruing on the 1965 revenue bonds on December 1, 1965; provided,
however, that any amounts so utilized shall be replaced from the
first revenues of the system thereafter received not herein
required to be otherwise applied.
E. Completion of Project. That when the Improvement
Project shall have been completed in accordance with such plans
and specifications, and when all amounts due therefor, including
all proper incidental expenses, shall have been paid, the Con-
sulting Engineer shall file with the Director of Finance a cer-
tificate so stating, and thereupon the City Manager shall trans-
fer to the 1965 :Reserve Fund all money remaining in such Con-
struction Fund, if any.
F. Purchaser Not Responsible. That any purchaser of
the bonds herein authorized, however, shall in no manner be
responsible for the application or disposal by the City or by
its officers of the funds derived from the sale thereof or of
any other funds herein designated.
Section 17. Fiscal Year. That for the purpose of
this ordinance, the system shall be operated upon a fiscal year
basis commencing on the first day of January in each calendar
year and ending on the last day of December in the same year.
Section 18. Sewer Fund. That for the purposes of
this ordinance, a separate account shall be set aside, main-
tained and known as the "City of Fort Collins, Colorado, Sewer
System Gross Income Fund" (herein sometimes designated as the
"Sewer Fund" or as the "Income Fund"). So long as any of the
bonds hereby authorized shall be outstanding, either as to prin-
cipal or interest, all income and revenues derived from the
operation of the system, except as hereinbefore provided, shall
be deposited into the Sewer Fund.
Section 19. Administration of Sewer Fund. That so
long as any of the bonds hereby authorized shall be outstanding,
either as to principal or interest, or both, the following pay-
ments shall be made from the Sewer Fund:
A. 0. & M. Expenses. Firstly, as a first charge
thereon, there shall be set aside from time to time moneys
sufficient to pay operation and maintenance expenses of the
then an amount shall be paid into the Bond Fund in such
month from the Reserve Fund equal to the difference
between that paid from said net income and the full
amount so stipulated. The money so used shall be
replaced in the Reserve Fund from the first revenues
thereafter received from the operation of the system
not required to be otherwise applied by paragraphs A,
B, C and F of this Section 19, but excluding any pay-
ments required for any subordinate obligations. In
the case other bonds or other obligations are outstand-
secure the payment of which on the net
ing any lien to
ith the lien
revenues of the system is on a parity w
thereon of the 1965 revenue bonds, and the proceedings
authorizing the issuance of those obligations require
the replacement of moneys in a reserve fund therefor,
then the money replaced in the 1965 Reserve Fund and
each such other reserve fund shall be replaced on a
pro rata basis as moneys become available therefor.
If, in any month, the City shall, for any reason, fail
to pay into the Reserve Fund the full amount above
stipulated from the net income of said sewer system,
the difference between the amount paid and the amount
so stipulated shall in a like manner be paid therein
from the first revenues thereafter received from the
operation of the system not required to be otherwise
applied by paragraphs A, B, C and F of this Section
19, but excluding any payments required for any subor-
dinate obligations° The moneys in the Bond Fund and
the Reserve Fund shall be used solely and only for
the purpose of paying the principal of and the interest
on the bonds issued hereunder; provided, however, that
any moneys at any time in excess of the Minimum Reserve
in the Reserve Fund may be withdrawn therefrom and used
as herein provided for the redemption of bonds hereby
authorized as they become due or on any redemption
date; and provided that any moneys in the Bond Fund and
the Reserve Fund in excess of accrued and anaccrued
Collins., Colorado, Sewer Refunding and Improvement Bonds,
Series June 1, 1965, Reserve Fund" (herein sometimes re-
ferred to as the "1965 Reserve Fund" or as the "Reserve
Fund"), until a reserve has been accumulated in an amount
equal'to not less than $180,000.00 (herein sometimes desig-
nated as the "Minimum Reserve"). After the Minimum Reserve
has been accumulated, such amounts or amount, if any, shall
be deposited monthly from any moneys remaining in the Sewer
Fund, into the Reserve Fund necessary to maintain the Re-
serve Fund as a continuing reserve in an amount not less
than the Minimum Reserve to meet possible deficiencies in
the Bond Fund. No payment need be made into the Reserve
Fund so long as the moneys therein shall equal not less than
the Minimum Reserve. The moneys in the Reserve Fund shall
be accumulated and maintained as a continuing reserve to be
used, except as hereinafter provided in said paragraphs D
and E of this Section 19, only to prevent deficiencies in
the payment of the principal of and the interest on the
bonds hereby authorized resulting from the failure to depos-
it into the Bond Fund sufficient funds to pay said princi-
pal and interest as the same accrue.
D. Termination upon Deposits to Maturity. No payment
need be made into the Bond Fund, the Reserve Fund, or both,
if the amount in the Bond Fund and the amount in the Reserve
Fund total a sum at least equal to the entire amount of the
1965 revenue bonds outstanding, both as to principal and
interest to their respective maturities, and both accrued
and not accrued, in which case moneys in said two funds in
an amount at least equal to such principal and interest
requirements shall be used solely to pay such as the same
accrue, and any moneys in excess thereof in said two funds
and any other moneys derived from the operation of the Sys-
tem may be used in any lawful manner determined by the City
Council.
E. Defraying Delinquencies in Bond Fund and
Reserve Fund. If, in any month, the City shall, for any
reason, fail to pay into the Bond Fund the full amount
above stipulated from the net income of the sewer system
not, however, in excess of the call price therefor
then applicable, or if none be then applicable,
not in excess of a reasonable price therefor,
(3) For the prior redemption of the 1965
revenue bonds or any other outstanding bonds or
other obligations incurred for any such purpose or
purposes and payable from the revenues of the sewer
system, in accordance with the provisions of the
bonds or other obligations and the ordinance
authorizing their issuance, including but not
necessarily limited to this ordinance, but not
in excess of a price at which such bonds or other
obligations can be purchased in the open market,
(4) For the improvement and extension of
the sewer system,
(5) For any other lawful purpose or purposes
authorized by the Constitution and laws of the
State of Colorado and the resolutions, ordinances
and Charter of the City, as the same may be
amended from time to time,
as the City Council at its option may from time to time
determine and direct.
Section 20. General Administration of Funds.
That the funds and accounts designated in Sections 16, 18
and 19 hereof shall be administered as follows:
A. Places and Times of Deposits. Each of the
funds and accounts hereinabove designated in Sections
16, 18 and 19 hereof shall be maintained and accounted
for separately from all other funds and accounts and
shall be deposited in an Insured Bank or Insured Banks
as determined and designated by the City Council (except
as otherwise expressly stated herein), but each fund
and account need not necessarily constitute a separate
bank account. Each bank account shall be continuously
secured to the fullest extent required or permitted by
the laws of Colorado for the securing of public funds,
and shall be irrevocable and not withdrawable by anyone
principal and interest requirements to the respective
maturities of the bonds outstanding may be used as
hereinabove provided in paragraph D of this Section 19.
F. Payment for Additional Obligations. Fourthly,
but either subsequently to or concurrently with the
payments required by paragraphs B and C of this Section
19 hereof and as provided in Sections 23 to 31, both
inclusive, hereof, any balance remaining in the Sewer
Fund, after making the payments hereinabove provided,
shall be used by the City for the payment of interest
on and the principal of additional bonds or other obli-
gations hereafter authorized to be issued and payable
from the revenues of the sewer system, including reas-
onable reserves therefor, as the same accrue; provided
that the lien of such additional bonds or other obliga-
tions on the net income and revenues of the system and
the pledge thereof for the payment of such additional
obligations shall be on a parity with, or subordinate
to, the lien and pledge of the bonds herein authorized,
as hereinafter provided.
G. Use of Sewer Revenues. After making the
payments hereinabove required to be made by paragraphs
A to F. both inclusive, of this Section 19 hereof, any
remaining income and revenues derived from the opera-
tion of the sewer system in the Sewer Fund, shall be
used for any one or any combination of purposes, as
follows:
(1) For the payment of the interest on and
principal of general obligation bonds, debt and
other obligations, if any, incurred in the acquire-
ment, construction and improvement of the sewer
system,
(2) For the purchase in the open market of
the 1965 revenue bonds or any other outstanding
bonds or other obligations incurred for any such
purpose or purposes and payable from any revenues
of the sewer system, at the best price obtainable,
the account to which the investment appertains, and any
loss resulting from such investment shall be charged to
such account. Moneys in any account designated in Sec-
tions 16, 18 and 19 hereof not immediately needed as,
hereinabove provided in this paragraph B of this Sec-
tion 20, may also be invested or reinvested in a savings
account in a state or federal savings and loan asso-
ciation in Colorado which is a member of the Federal
Savings and Loan Insurance Corporation, so long as the
payment of such account is fully secured under the
appropriate federal law. The Director of Finance shall
present for redemption or sale on the prevailing market
any Federal Securities so purchased as an investment of
moneys in the fund or account whenever it shall be
necessary to do so in order to provide moneys to meet
any payment or transfer from such account.
C. Character of Funds. The moneys in any account
herein authorized shall consist either of lawful money
of the United States of America, or Federal Securities,
or both such money and such securities. Moneys depos-
ited in a demand or time deposit account in, or evi-
denced by a certificate of deposit of, an Insured Bank,
or deposited in a savings account pursuant to the next
preceding paragraph B hereof, shall be deemed lawful
money of the United States of America.
Section 21. First Lien Bonds. That the 1965 reve-
nue bonds, subject to the payment of all necessary and reas-
onable operation and maintenance expenses of the system,
constitute an irrevocable and first (but not necessarily an
exclusively first) lien upon the revenues derived from the
operation of such system.
Section 22. Equality of Bonds. That the 1965
revenue bonds authorized to be issued hereunder and from
time to time outstanding shall not be entitled to any
priority one over the other in the application of the reve-
nues of the sewer system, regardless of the time or times of
the issuance of the bonds, it -being the intention of the
for any purpose other than the respective designated
purposes. Each monthly payment shall be made into
the proper account on the first day of each month,
except that when the first day of any month shall be
a Sunday or a legal holiday, then such payment shall
be made on the next preceding secular day. Notwith-
standing any other provision herein to the contrary,
moneys shall be credited with the Paying Agent at
least five days prior to each interest payment date
herein designated sufficient to pay the interest and
any principal then becoming due on the bonds.
B. Investment of Moneys. Any. moneys in any
account designated in Sections 16, 18 and 19 hereof,
not needed for immediate use, may be invested or
reinvested by the Director of Finance in Federal
Securities which shall be subject to redemption at
face value by the holder thereof at the option of
such holder, or which shall mature not later than
ten years from the date of such investment; provided,
however, that the maturity of any security which is
not subject to prior redemption at the holder's option
shall not exceed the estimated date of the probable
expenditure or use of the moneys evidenced by such
security, except that Federal Securities in the
Refunding Fund shall so be subject to redemption at
the holder's option at face value or shall mature at
least five days prior to the respective interest and
principal payment dates of the outstanding bonds being
refunded so that moneys from the redemption of the
Federal Securities shall be available in sufficient
amounts and at such times to permit the redemption of
the designated outstanding bonds at their designated
maturities as herein provided. The Federal Securities
so purchased as an investment of moneys in any such
account shall be deemed at all times to be a part of
said account, and the interest accruing thereon and
any profit realized therefrom shall be credited to
CO
requirements of the outstanding revenue bonds and other
obligations of the City payable from and constituting a
lien upon revenues of the sewer system (excluding any re-
serves therefor), provided that in determining the amount
of revenues pursuant to paragraph B of this Section 23,
there shall be excluded any sewer trunk line assessments,
sewer main line assessments, sewer tap fees and plant
investment fees which the City shall have determined not
to include the gross revenues as heretofore provided; and
C. Projected Earnings Test. The estimated annual
revenues to be derived from the operation of the sewer sys=
tem for the twelve months immediately succeeding the comple-
tion of the facilities to be acquired with the proceeds of
the additional bonds or obligations reduced by an amount
equal to 25% of estimated revenues to be derived from the
proposed facilities to be acquired with the proceeds of the
additional bonds or obligations shall be an amount equal to
the sum of the following: (1) the estimated operation and
maintenance expenses of the sewer system for said twelve
months, (2) an amount representing one hundred thirty per
centum (130%) of the combined maximum annual principal and
interest requirements of the outstanding revenue bonds and
other obligations of the City payable from and constituting
a lien upon revenues of the sewer system, and the bonds or
Other obligations proposed to be issued (excluding any
reserves therefor).
Section 24. Certification of Revenues. That a writ-
ten certification by a Consulting Engineer (except the City En-
gineer) that the said estimated revenues and that said annual
revenues, when adjusted as herein provided, are sufficient to
pay said amounts, shall be conclusively presumed to be accurate
in determining the right of the City to authorize, issue, sell
and deliver said additional bonds or other additional obliga-
tions on a parity with the bonds herein authorized; provided,
however, thatthe written certification shall be submitted to
the Fiscal Agent for review at least 30 days prior to the author-
ization of any additional bonds as permitted by this Section.
Section 25. Estimation of Annual Revenues. That
the Consulting Engineer in rendering his certification shall
give consideration to any probable increase (but not reduction)
Council that there shall be no priority among the bonds
regardless of the fact that they may be actually issued and
delivered at different times.
Section 23. Limitations upon Issuance of Parity
Bonds, Nothing in this ordinance contained shall be con-
strued in such a manner as to prevent the issuance by the
City of additional bonds or other obligations payable from
the income or any revenues derived from the operation of
the system, as authorized by law, and constituting alien
upon said revenues on a parity with, but not prior nor
superior to, the lien of the 1965 revenue bonds herein
authorized, nor to prevent the issuance of bonds or other
obligations refunding all or a part of the 1965 revenue
bonds herein authorized; provided, however, that before
any such additional parity bonds or other parity obligations
are authorized or actually issued, excluding any parity
refunding bonds or parity refunding obligations (other than
those refunding subordinate bonds, as permitted in Section 30
hereof).
A. Absence of Default_, The City shall not have
defaulted in making any payments required by Section 19
hereof during the twelve months immediately preceding
the issuance of such additional bonds or other addi-
tional obligations, or if none of the 1965 revenue
bonds have been issued and outstanding for a period
of at least twelve months, for the longest period any
of the 1965 revenue bonds have been issued and out-
standing; and
B. historic Earnings Test. The annual revenues
derived from the operation of the sewer system for the
Fiscal Year immediately preceding the date of the
issuance of such additional parity bonds or'obligations
shall have been sufficient to pay the annual operation
and maintenance expenses of the sewer system for said
Fiscal Year, and, in addition, sufficient to pay an
amount representing one hundred thirty per centum (130%)
of the combined maximum annual principal and interest
V i
•
Section 30. Limitations upon Issuance of Parity
Refunding Bonds_. That no refunding bonds or other refunding
obligations payable from net revenues shall be issued on a
parity with the bonds herein authorized, unless:
A. The lien of the outstanding bonds so refunded
on net revenues of the system is on a parity with the
lien thereon of the bonds herein authorized; or
B. Tkie refunding bonds are issued in compliance
with subsections A and B of Section 23 hereof.
Section 31. Limitations upon Issuance of Any
Refunding Bonds. That any refunding bonds or other refund-
ing obligations payable from any revenues of the system
shall be issued with such details as the Council may by
ordinance provide, but without any impairment of.any con-
tractual obligations imposed by the City by any proceedings
authorizing the issuance of any unrefunded portion of such
outstanding bonds or obligations of any one or more issues
(including but not necessarily limited to the 1965 revenue
bonds herein authorized). If only a part of the outstanding
bonds of any issue or issues payable from the net revenues
of the system is refunded, then such bonds may not be
refunded without the consent of the holder or holders of
the unrefunded portion of such bonds unless:
A. The net annual interest cost each year to the
City on such refunding bonds shall be less than the
net annual interest cost for the same years on the
outstanding bonds refunded thereby, or
B. The lien on revenues of the sewer system for
the payment of the refunding obligations is subordinate
to each such lien for the payment of any obligations
not refunded.
The refunding bonds or other refunding obligations so issued
Shall enjoy complete equality of lien with the.portion of
any bonds or other obligations of the same issue which is
not refunded, if any there be; and the holder or holders
of such refunding bonds or such other refunding obligations
shall be subrogated to all of the rights and privileges
in operation and maintenance expenses of the sewer system,
that will result from the expenditure of the funds proposed
to be derived from the issuance and sale of the said bonds
or other obligations.
Section 26. Subordinate Bonds Permitted. That
nothing herein contained, subject to limitations herein
stated, shall be construed so as to prevent the City from
issuing additional bonds payable from the revenues of the
system and having a lien thereon subordinate, inferior, and
junior to the lien of the bonds authorized to be issued by
this ordinance.
Section 27. Superior Bonds Prohibited. That
nothing herein contained shall be construed so as to permit
the City to issue additional bonds or other obligations
payable from the net revenues and having a lien thereon
prior and superior to the bonds herein authorized to be
issued.
Section 28. Use of Proceeds. That the proceeds
of any additional bonds (other than -refunding bonds) payable
from net revenues shall be used only for the purpose of
improving and extending the sewer system.
Section 29. Privilege of Issuing Refunding Bonds.
That if at any time after the 1965 revenue bonds herein
authorized, or any part thereof, shall have been issued and
remain outstanding, the Council shall find it desirable to
refund any outstanding bonds or other obligations payable
from and constituting a lien upon any revenues of the sewer
system, said bonds or other obligations, or any part thereof,
may be refunded (but only with the consent of the holder or
holders thereof, unless the bonds at the time or times of
their required surrender for payment shall then mature or
shall then be callable for prior redemption at the City®s
option upon proper call), regardless of whether the priority
of the lien for the payment of the refunding bonds on the
revenues of the sewer system is changed (except as provided
in Sections 27 and 30 hereof). .
CO
ON.
C. Service Charges and Their Collection. That while
the bonds authorized herein or any of them remain outstanding
Idand unpaid, the rates for all services rendered by the sewer
system to the City and to its inhabitants and to all consumers
within or without the boundaries of the City shall be reasonable
and just, taking into account and consideration the cost and
value of said sewer system and the proper and necessary allow-
ances for the depreciation thereof and the amounts necessary for
the retirement of all bonds and other securities or obligations
payable from the revenues of the sewer system, the accruing in-
terest thereon, and reserves therefor; and there shall be charged
against all purchasers of service, including the City, such
rates and amounts as shall be adequate to meet the requirements
of this and the preceding sections hereof, and which rates and
amounts from the sewer system shall be sufficient to produce
revenues or earnings annually to pay the annual operation and
maintenance expenses and an amount equal to one hundred thirty
per centum (130%) of the combined maximum annual principal and
interest requirements on bonds and any other obligations payable
annually from any revenues thereof (excluding the reserves
therefor), all of which revenues, including those received from
the City, shall be subject to distribution to the payment of
operation and maintenance expenses of the sewer system and the
payment of principal of and interest on all obligations payable
from the revenues of the sewer system, including reasonable re-
serves therefor, provided that in determining the amount of reve-
nues pursuant to paragraph C of this Section 32 there shall be ex-
cluded any sewer trunk line assessments, sewer main line assess-
ments, sewer tap fees and plant investment fees which the City
shall have determined not to include in gross revenues as hereto-
fore provided; that no free service, nor facilities shall be fur-
nished by the sewer system; that should the City elect to use for
municipal purposes any sewage disposal facilities, or in any other
manner use the system, or any part thereof, any sLnhuse will be paid
for fmmtbe City°s general fund or other available revenues at the
reasonable value of the use so made; that all the income so de-
rived from the City shall be deemed to be income derived from the
operation of the sewer system, to be used and accounted for in
the same manner as any other income derived from the operation
of said sewer system. The City shall cause all rates, fees, and
enjoyed by the holder ox holders of the bonds or Of-Oer
obligations of the same issue refunded thereby.
Section 32, Protective Covenants. That the
g covenants and agrees with each and every holder
City hereby
from time to time of the bonds issued hereunder:
A. Use of Bond Proceeds.
(1) That the City, with the proceeds derived
from the sale of the refunding bonds in the amount of
$292,000.00, will proceed without delay to effect the
Refunding Project, investing the moneys available for
the refunding, payment and discharge of the two hundred
and ninety-two outstanding bonds to be refunded to the
best advantage of the City pending the need from time
to time of such moneys for such refunding, Payment and
discharge.
(2) That the City, with the proceeds derived
from the sale of the improvement bonds in the amount
of $2,200,000,00, will, after the sale, issuance and
delivery of such bonds, proceed without delay to effect
the Improvement Project as hereinabove provided.
B. Payment of 1965 Bonds. That the City will
promptly pay the principal of and the interest on every 1965
revenue bond issued hereunder and secured hereby at the
on the dates and in the manner specified herein and
place,
ining accord -
in said bonds and in the coupons thereto apperta
hereof. Such principal
ing to the true intent and meaning
and interest are payable solely from the net income rates be
derived from the operation of, and the resultant services
a
charges for the use of, and the products and sere
dered by, the sewer system; and nothing in the bonds or
coupons or in this ordinance shall be construed as obllor
gating the City to redeem any of said bonds, principal
interest, from, and the holder or holders thereof may not
look to, any general or other fund except the income which
s of this ordinance.
is so pledged under the provision
E, Billing Procedure. That all bills for
sewerage disposal services or facilities furnished or
served by or through the system shall be rendered to cus-
tomers at regular intervals and shall be delinquent thirty
days after their date; and in the event said bills are not
paid within ten days after they become delinquent, ser-
vice shall be discontinued and the rates and charges due
shall be collected in a lawful manner.
F. Records. That so long as any of the bonds
remain outstanding, proper books of record and account will
be kept by the City, separate and apart from all other records
and accounts, showing complete and correct entries of all,
transactions relating to the system. Such books shall include
(but not necessarily be limited to) monthly records showing
a detailed statement of the expenses of the system,
G, Right to Inspect. That any holder of any of
the bonds, or any duly authorized agent or agents of such
holder, shall have the right at all reasonable times to
inspect all records, accounts and data relating thereto and
to inspect the system and all properties comprising the
system.
H. Audits, That the City shall, within ninety
days following the close of each Fiscal Year, cause an audit
of such books and accounts to be made by an Independent
Accountant, showing the receipts and disbursements for the
account of the system, and that such audit will be available
for inspection by any holder of any of the bonds. Each such
audit, in addition to whatever matters may be th ought proper
by the accountant to be included therein, shall include the
following:
(1) A statement in detail of the income and
expenditures of the sewer system for the Fiscal Year,
including but not necessarily limited to a classified
statement of gross revenues received from the operation
of the sewer system, of the net revenues, and of the
amount of any capital expenditures appertaining to the
sewer system for the Fiscal Year, and a statement of
the profit or loss for the Fiscal Year;
service charges appertaining to said system to be collected as
soon as reasonable, shall prescribe and enforce rules and regu-
lations for the payment thereof and for the connection with and
the disconnection from properties of said sewer system, and
shall provde methods of collection and penalties, to the end
that net revenues of the sewer system shall be adequate to meet
-the requirements thereof,
D. Levy of Charges. That the City will by an ordi-
nance finally adopted and approved not later than the 1 th day
Of Aoril , 1965, in which rates and charges, as provided in
said ordinance, shall be effective not later than the 1st day
of October , 19652 fix, establish and levy the rates and char-
ges which are required by paragraph C of this Section 32 of this
ordinance, if such action be necessary therefor. No reduction
in any initial or existing rate schedule for the sewer system
may be made unless:
(1) The City has fully complied with the provisions
of Section 19 of this ordinance for at least the full Fis-
cal Year immediately preceding such reduction of the initial
rate schedule, or if none of the 1965 revenue bonds have
been issued and outstanding for a period of at least one
year, for the longest period that any of the 1965 revenue
bonds have been issued and outstanding,
(2) The audit required by the Independent Accountant
and by paragraph H of this Section 32 of this ordinance for
the full Fiscal Year immediately preceding such reduction,.
or if none of the 1965 revenue bonds have been issued and
outstanding for a period of at least one year, for the long-
est period that any of the 1965 revenue bonds have been
issued and outstanding, discloses that the estimated revenues
resulting from the proposed reduction, for the sewer system
will be sufficient to pay an amount at least equal to the
operation and maintenance expenses of the sewer system for
said period and, in addition, one hundred and thirty per cen-
tum (130%) of the combined maximum annual principal and in-
terest requirements on bonds and any other obligations pay-
able annually from any revenues of the sewer system (exclud-
ing reserves therefor), provided that in determining the
amount of revenues pursuant to paragraph D of this Section
32 there shall be excluded any sewer trunk line assessments,
sewer main line assessments, sewer tap fees and plant in-
vestment fees which the City shallhave determined not to
after each audit and report has been prepared, and that any
such holder shall have the right to such
with the account-
ant or person making the audit and report the contents thereof
and to ask for such additional information as he may reason-
ably require,
I, Efficient Operatioti, That the City will oper-
ate tkle system so long as any of the 1965 revenue bonds are
outstanding in an efficient and economical manner, will main -
taro the system in efficient operating condition, and will
make such improvements, enlargements, extensions, repairs and
betterments thereto as may be necessary or advisable to insure
ical and efficient operation at all times.
their econom
J. Use of Bond Fund and Reserve Fund. That the
Bond Fund and the Reserve Fund shall be. used solely and only,
and those funds are hereby pledged for the purpose of paying
the interest on and the principal of the bonds herein author-
ized, e'= ept for those moneys in the Bond Fund and the
Reserve Fund as are in excess of the interest on and the
principal of the bonds, both accrued and not accrued, to
their 'respective maturities, and except those moneys of the
Reserve. Fund in excess of the Minimum Reserve, as herein -
above provided.
K. Charges and 'Liens upon System. That from the
revenues of the sewer system, the City will pay all taxes
and assessments or other municipal or'governmental charges,
if any, lawfully levied, assessed upon or in respect to the
system, or any part thereo, when the same shall become due,
and it will duly observe and comply with all valid require-
ments of any municipal or governmental, authority relative to
any part of the system; and the City will not create nor
suffer to be created any lien or charge upon the system nor
upon the revenues therefrom except as permitted by this
ordinance, or it will make adequate provisions to satisfy
and discharge within sixty days after the same shall accrue,
0.11 lawful claims and demands for labor, materials,. supplies
if unpaid, might by law become
Or other objects, cah_ct,, .
a Lien upo'^. therefrom;
upon the revenue s
(2) A balance sheet as of the eDd of such Fiscal
Year, including the amount on hand, both cash and
investments, in each of the funds created by the various
ordinances and other proceedings authorizing the issu-
ance of outstanding bonds and other obligations payable
from the revenues of the sewer system;
(3) The accountant's comment regarding the City's
methods of operation and accounting practice and the
manner in which the City has carried out the require-
ments of this ordinance, and any other ordinance and
other proceedings authorizing the issuance of outstand-
ing bonds or other obligations payable from the revenues
of the system, and the accountant's recommendation for
any change or improvement in the operation of the system
as the accountant deems appropriate; and
(4) A recapitulation of each fund or account
created by the various ordinances and other proceedings
authorizing the issuance of outstanding bonds and other
obligations payable from the revenues of the system,
into which fund are put moneys derived from the opera-
tion of the system or derived from the sale of Federal
Securities, such analysis to show the balance in such
fund at the beginning of the Fiscal Year, the deposits
and withdrawals during said year, and the balance at
the end of said year.
All expenses incurred in the making of the audits and reports
required by this paragraph shall be regarded and paid as a
maintenance and operation expense. The City agrees to fur-
nish forthwith (and in any event within sixty days from the
time the audit and report is filed with the City) a copy of
each of such audits and reports to the holder of any of the
bonds at his request, and without request:
a. To any Purchaser,
b. To the Fiscal Agent, and
c. To any other person designated in any ordi-
Dance or other proceedings appertaining to
any outstanding obligations payable from
revenues of the system other than the 1965
revenue bonds,
IL
i
encumber, or in any manner dispose of or otherwise alienate`,.
the sewer system or any part thereof, including any and all
extensions and additions that may be made thereto, until all
the bonds herein authorized to be issued shall have been
paid in full, both principal and interest, or unless provi-
sion has been made therefor, except that the City may sell
any portion of said property which shall have been replaced
by other property of at least equal value, or which shall
cease to be necessary for the efficient operation of the
system, but in no manner nor to such extent as might pre-
judice the security for the payment of the bonds herein
authorized; provided, however, that in the event of any
sale as aforesaid, the proceeds of such sale shall be dis-
tributed as net income of the system, in accordance with
the provisions of Section 19 hereof.
0. Extension of Interest Payments. That in
order to prevent any accumulation of coupons or claims for
interest after maturity, the City will not directly or in-
directly extend or assent to the extension of the time for
the payment of any coupon or claim for interest on any of
the bonds issued hereunder, and it will not directly or
indirectly be "a party to or approve any arrangement for
any such extension or for the purpose of keeping alive any
of said coupons; and in case the time for payment of any
such coupons shall be extended, such coupon or installment
or installments of interest after such extension or arrange=
ment shall not be entitled in case of default hereunder to
the benefit or security of this ordinance, except subject
to the prior payment in full of the principal of all bonds
issued hereunder and then outstanding, and of matured
interest on such bonds the payment of which has not been
extended.
P. Surety Bonds. That each municipal official or
other person having custody of any funds derived from opera-
tion o:E the system, or responsible for the handling of such
funds, shall be fully bonded at all times, which bond shall
be conditioned upon the proper application of said funds.
provided, however, that nothing herein shall require the
City to pay or cause to be discharged, or make, provision
for any such tax, assessments, lien or charge before the
time when payment thereof shall be due or so long as the
validity thereof shall be contested in good faith by approp-
riate legal proceedings.
L. Insurance. That the City in its operation of
the sewer system will carry fire and extended coverage insur-
ance, workmen's compensation insurance, public liability
insurance, and other types of insurance in such amounts and
to such extent as is normally carried by private corporations
operating public utilities of the same type. The cost of
such insurance shall be considered one of the operating costs
of the system. In the event of property loss or damage,
insurance proceeds shall be used first for the purpose of
restoring or replacing the property lost or damaged, and any
remainder shall be treated as net income and shall be sub-
ject to distribution in the manner provided hereinabove in
Section 19 hereof, for net income and revenues derived from
the operation of the system.
M. Competing System. That as long as any of the
1965 revenue bonds are outstanding, the City shall not grant
any franchise or license to a competing sewer system, nor
shall it permit during said period (except as it may legally
be required to do so) any person, association, firm, corpora-
tion or organization to sell sewer service or facilities, to
any c.)nsumer, public or private, within the City. Such
limitation shall not apply to any person, association, firm,
corporation or organization presently selling sewer service
or facilities within the City or which, by annexation to or
consolidation with the City, hereafter sells sewer service
or facilities within the City, provided, however, that such
person, association,firm, corporation or organization shall
not be permitted to expand its services so as to diminish the
security for the bonds.
N. Alienation of System Prohibited. That the
City will not sell, lease, mortgage, pledge or otherwise
The cost of each such bond shall -be considered one of the
operating costs of the system to which the bond appertains.
Q. Additional Bonds. The City will not hereafter
issue any bonds or other obligations payable from the reve-
nues of the system and having a lien on a parity with or
subordinate to the bonds herein authorized until all bonds
herein authorized have been paid in full, unless such addi-
tional bonds or other additional obligations on a parity
with or junior to the bonds herein authorized are issued
in such manner as provided in Sections 23 to 31, both
inclusive, hereof.
R. Competent Management. That the City shall
employ experienced and competent management personnel for
the system. In the event of default on the part of the City
in paying principal of or interest on the bonds promptly as
each falls due, or in the keeping of any covenants herein
contained, and if such default shall continue for a period
of sixty days, or if the net revenues of the system in any
Fiscal Year should fail to equal at least the amount of the
principal of and the interest on the revenue bonds and other
obligations (including all reserves therefor specified in
the authorizing proceedings, including but not limited to
this ordinance) payable from said net revenues in that
Fiscal Year, the City shall retain a firm of competent
management engineers skilled in the operation of sewer
systems to assist the management of the system so long as
such default continues or the net revenues are less than
the amount hereinabove designated,
S. Performing Duties. That the City will faith-
fully and punctually perform all duties with respect to the
system required by the Constitution and laws of the State
of Colorado and the ordinances and resolutions of the City,
including but not limited to the making and collecting of
reasonable and sufficient rates and charges for service
rendered or furnished by the system as hereinbefore pro-
vided, and the proper segregation of the revenues of the
system and their application to the respective accounts.
T. Other Liens. That other than as provided by
this ordinance, there are no liens or encumbrances of any
nature, whatsoever, on or against the system or the revenues
derived or to be derived from the operation of the same.
U. City's Existence. That the City will maintain
its corporate identity and existence so long as the 1965
revenue bonds herein authorized remain outstanding, unless
another political subdivision by operation of law succeeds
to the duties, privileges, powers, liabilities, disabilities,
immunities, and rights of the City and is obligated by law
to operate and maintain the sewer system as herein provided
ifor the City without adversely affecting to any substantial
degree the privilege and rights of any holder of any out-
standing bond.
V. Payment of Refunded Bonds. That the City
shall pay the principal of and interest on the outstanding
1948 revenue bonds and the 1959 revenue bonds as the same
shall become payable at their respective maturities.
Section 33. Disposition of Funds Concerning
Outstanding Bonds. That simultaneously with the delivery
of Subseries R of the 1965 revenue bonds, the Director of
Finance shall make the following disposition of the 1948
Bond Fund, the 1948 Reserve Fund, the 1959 Bond Fund and
the 1959 Reserve Fund:
A. Firstly, there shall be paid into the
Refunding Fund an amount fully sufficient to pay
interest on, when due, and redeem the principal of
the outstanding bonds to be refunded. at their respec-
tive maturities, and any service charges appertaining
thereto to be paid from the Refunding Fund, including
but not necessarily limited to any charges for the
Escrow Agent to be paid for the operation and main-
tenance of the Refunding Fund and performing services
incidental thereto, pursuant to an agreement to be
hereafter executed between the City and the Escrow
Agent (sometimes designated as the 1°Escrow Agreement"),
as authorized by paragraph C of Section 38 hereof,
C. Incapable to Perform. The City shall for any
reason be rendered incapable of fulfilling its obliga-
tions hereunder.
D. Default of any Provision. The City shall make
default in the due and punctual performance of its
covenants or conditions, agreements and provisions
contained in the bonds or in the ordinance on its part
to be performed, and if such default shall continue for
sixty days after written notice specifying such default
and requiring the same to be remedied shall have been
given to the City by the holders of twenty-five per
centum (25%) in principal amount of the bonds then
outstanding.
Section 36. Remedies for Defaults. That upon the.
happening and continuance of any of the events of default as
provided in Section 35 hereof, then and in every case the
holder or holders of not less than twenty-five per centum
(25%) in principal amount of the bonds then outstanding,
including but not limited to a trustee or trustees therefor,
may proceed against the City, its governing body, and its
agents, officers and employees to protect and enforce the
rights of any holder of bonds or coupons under this ordi-
nance by mandamus or other suit, action or special proceed-
ings in equity or at law, in any court of competent juris-
diction, either for the appointment of a receiver or for
the specific performance of any covenant or agreement con-
tained herein or in an award of execution of any power
herein granted for the enforcement of any power, legal or
equitable remedy as such holder or holders may deem most
effectual to protect and enforce the rights aforesaid, or
thereby to enjoin any act or thing which may be unlawful or
in violation of any right of any bondholder, or to require
the governing body of the City to act as if it were the
trustee of an expressed trust, or any combination of such
remedies. All such proceedings at law or in equity shall
be instituted, had and maintained for the equal benefit of
all holders of the bonds and coupons then outstanding. Any
except to the extent $292,000.00 of the proceeds of the
refunding bonds are deposited in the Refunding Fund;
and
B. Secondly, the Director of Finance shall make
provision for the payment of any service charges or
other expenses incidental to refunding the outstanding
bonds to be refunded and not to be paid from the
Refunding Fund; and
C. Thirdly, the Director of Finance shall make
provision for the payment of the principal of and
interest on the 1965 revenue bonds becoming due on or'
before the first day of June, 1966, except to the
extent provision is otherwise made for such payments;'
and
D. Fourthly, and finally, any moneys remaining
in the 1948 Bond Fund, the 1948 Reserve Fund, the 1959
Bond Fund and the 1959 Reserve Fund may be applied to
any other lawful purpose or purposes authorized by the
Constitution and laws of the State of Colorado, and the
ordinances of the City of Fort Collins, as the same may
be from time to time amended.
Section 34. Exemption from Taxation. That pur-
suant to Section 139-52-6, Bond Act, the bonds herein author-
ized and the income therefrom shall be exempt from taxation,
except inheritance, estate and transfer taxes.
Section 35. Events of Default. That each of the
following events is hereby declared an "event of default,"
that is to say:
A. Nonpayment of Principal. Payment of the
principal of any of the bonds herein authorized to be
issued shall not be made when the same shall become due
and payable, either at maturity, or by proceedings for
prior redemption, or otherwise.
B. Nonpayment of Interest. Payment of any
installment of interest shall not be made when the same
becomes due and payable or within thirty days thereafter.
a
Section 38. Delegated Powers,
That the officers
of the City be, and they hereby are, authorized and directed
to take all action necessary or appropryate to effectuate
the provisions hereof, including, without limiting the
generality of the foregoing:
A. Printing Bonds. The printing of the bonds,
including on each a certified true
counsel's approving opinion; copy of bond
B. Final Certificates. The
certificates as may be reasonably rtquition of such
equired by any Pur-
chaser relating, inter alia, to th
bonds, the tenure and identity of e signing of the
the municipal offi-
cials, delivery of the bonds, the
receipt of the bond
purchase price, the creation of aI, escrow for the
Refunding Project, and the absentfl of litigation, pend-
ing or threatened, affecting the
C. Escrow Agreement. The
ekecution of an escrow
agreement with the Escrow Agent Concerning the deposits
to be made therewith in the Refunding Fund as herein
provided, and of any other agreement necessary or
desirable to implement the provisions of this ordinance.
Section 39. Defeasance. T
interest and prior redemption premi hat when all principal,
AmS, if any, in connec-
tion with the bonds hereby authorize
d
the pledge and lien and all obligatio ns hereunder shall have been duly paid,
thereby be discharged and the bonds
deemed to be outstanding within the Shall no longer be
nance. There shall be deemed to be meaning of this ordi-
the Council has placed in escrow andShch due payment when
cial bank located within the State In trust with a commer-
full trust powers, an amount Buff' . Colorado and exercising
minimum yield from Federal SeCuriteye- t (including the known
may be initially invested) to meet leS in which such amount
principal, interest and.prior cede all requirements of
as the same become due at their fimAtion premium, if any,
designated prior redemption datesehal maturities or upon
so held shall become due prior to The Federal Securities
which the proceeds thereof shall tithe respective times on
e needed, in accordance
receiver appointed in any proceedings to protect the rights
of such holders hereunder, the consent to any such appoint-
ment being hereby expressly granted, may enter and take
possession of the system, operate and maintain the same,
prescribe rates, fees or charges, and collect, receive and
apply all revenues arising after the appointment of such
receiver in the same manner as the City itself might do.
The failure of any such holder so to proceed shall not
relieve the City or any of its officers, agents or employees
of any liability for failure to perform any duty. Each
right or privilege of any such holder (or trustee thereof)
is in addition and cumulative to any other right or privi
lege, and the exercise of any right or privilege by or on
behalf of any holder shall not be deemed a waiver of any
other right or privilege thereof.
Section 37. Duties Upon Defaults. That upon the
happening of any of the events of default as provided in
Section 35 hereof, the City, in addition, will do and per-
form all proper acts on behalf of and for the holders of
bonds and coupons to protect and preserve the security
created for the payment of their bonds and coupons and to
insure the payment of the principal of and the interest on
said bonds promptly as the same become due. All proceeds
derived therefrom, so long as any of the bonds herein
authorized, either as to principal or interest, are out-
standing and unpaid, shall be paid into the Bond Fund, and
in the event of obligations hereunder issued and outstand-
ing during said period of time on a parity with the bonds
herein authorized, into such bond funds for all "parity"
obligations on an equitable and prorated basis, and used for
the purposes therein provided. In the event the City fails
or refuses to proceed as in this section provided, the
holder or holders of not less than twenty-five per centum
(257.) in principal amount of the bonds then outstanding,
after demand in writing, may proceed to protect and enforce
the rights of the bondholders as hereinabove provided.
A
A
i
B. Notice of Amendment.. Whenever the City shall
propose to amend or modify this ordinance under the provi-
sions of this Section, it shall cause notice of the proposed
amendment to be:
(1) Published one time in a newspaper, as herein
defined, and ,
(2) Published one time in a financial newspaper
or journal published in the City and County of Denver,
Colorado.
Such notice shall briefly set forth the nature of the pro-
posed amendment and shall state that a copy of the proposed
amendatory ordinance is on file in the office of the City
Clerk for public inspection.
C. Time for Amendment. Whenever at any time
within one year from the date of the publication of said
notice there shall be filed in the office of the City Clerk
an instrument or instruments executed by the holders of at
least seventy-five per centum (75%) in aggregate amount of
the bonds then outstanding as in this section defined, which
instrument or instruments shall refer to the proposed amenda-
tory ordinance described in said notice and shall specific-
ally consent to and approve the adoption thereof, but not
otherwise, the City Council may adopt such amendatory
ordinance and such ordinance shall become effective.
D. Binding Consent to Amendment. If the holders
of at least seventy-five per centum (75%) in aggregate
principal amount of the bonds outstanding as in this Section
defined; at the time of the adoption of such amendatory
ordinance, or the predecessors in title of such holders,
shall have consented to and approved the adoption thereof
as herein provided, no holder of any bond, whether or not
such holder shall have consented to or shall have revoked
any consent as in this section provided, shall have any
right or interest to object to the adoption of such amenda-
tory ordinance or to object to any of the terms or provi-
sions therein contained or to the operation thereof or to
enjoin or restrain the City from taking any action pursuant
to the provisions thereof.
with a schedule established and agreed upon between the
Council and such bank'at the time of the creation of the
escrow, or the Federal Securities shall be subject to
redemption at the option of the holders thereof to assure
such availability as so needed to meet such schedule.
Section 40. Amendment of Ordinance.
A. Limitations upon Amendments. That this ordi-
nance may be amended or supplemented by ordinances adopted
by the Council in accordance with the laws of the State of
Colorado, without receipt by the City of any additional
consideration, but with the written consent of the holders
of seventy-five per centum (75%) of the bonds authorized
hereby and outstanding at the time of the adoption of such
amendatory or supplemental ordinance (not including in any
case any bonds which may then be held or owned for the
account of the City, but including such refunding bonds as
may be issued for the purpose of refunding any of the bonds
herein authorized if such refunding bonds are not owned by
the City); provided, however, that no such ordinance shall
have the effect of permitting:
(1) An extension of the maturity of any bond
authorized hereby; or
(2) A reduction in the principal amount of any
bond, the rate of interest thereon, or the redemption
premium payable thereon; or
(3) The creation of a lien upon or a pledge of
revenues ranking prior to the lien or pledge created
hereby; or
(4) A reduction of the principal amount of bonds
required for consent to such amendatory or supplemental
ordinance; or
(5) The establishment of priorities as between
bonds issued and outstanding under the provisions
hereof; or
(6) The modification of or otherwise affecting
the rights of the holders of less than all of the bonds
then outstanding.
I
FINALLY PASSED AND ADOPTED this 1st day of
April , 1965.
/s/ Harvey G. Johnson
Mayor
(SEAL)
Attest:
/a/ Miles F. House
City C erk
Published in The Fort Collins Coloradoan Second
publication (i.e. publication after final passage April
6 1965.
I, Miles F. House , City Clerk, City of Fort
Collins, County of Larimer, State of Colorado, do hereby
certify that the above and foregoing ordinance is a true
and correct copy of_the ordinance introduced and passed on
first reading at the regular meeting held on the llth day
of March , 1965, read in full, published in full in
The Fort Collins Coloradoan on the 16th day of
March , 1965, and after holding a public hearing thereon,
read a second time by title, finally passed and adopted on
the 1st day of April , 1965, and published in full a
second time in The Fort Collins Coloradoan on
the 6th day of April , 1965.
(SEAL)
Attest:
/s/ Miles F. House
City Clerk
NOTICE IS HEREBY .GIVEN that at the regular meeting
of the City Council, to be held on Thursday .,, the 1st day
of April 1965, at the hour of 1:30 o'clock P.m.,
at the Council Chambers in the City Hall, in Fort Collins,
Colorado, the City Council will hold a public hearing on the
aforesaid proposed ordinance and thereafter will consider it
for final passage and adoption.
/s/ Harvey G. Johnson
Mayor
(SEAL)
Attest:
Is/ Miles F. House
City Clerk
Published in The Fort Collins Coloradoan
First publication March 16 , 1965.
section 42. Severability Clause. That if any
section, paragraph, clause or provision of this ordinance
shall for any reason be held to be invalid or unenforce-
able, the invalidity or unenforceability of such section,
paragraph, clause or provision shall not affect any of
the remaining provisions of this ordinance.
Section 43. Repealer Clause. That all ordinances,
resolutions, by-laws and regulations of the City, in conflict
with this ordinance,are hereby repealed to the extent only
of such inconsistency. This repealer shall not be construed
to revive any ordinance, resolution, by-law, or regulation,
or part thereof, heretofore repealed.
Section 44. Manner of Publication and Effective
Date. That this ordinance shall be published once in full
at least ten days before its final passage in a newspaper,
as herein defined, which publication shall contain a notice
giving the date when said proposed ordinance will be presented
for final passage. Within five days after final passage,
the ordinance as passed shall be published once in full as
provided above, whereupon it shall take effect on the tenth
day following its passage.
Section 45. Disposition of Ordinance. That a
true copy of this ordinance, immediately on its final pas-
sage, shall be numbered and recorded in the book marked
"Ordinance Record," and adoption and publication shall be
authenticated by the signatures of the Mayor and City Clerk,
and by the certificate of the publisher, respectively.
INTRODUCED, READ IN FULL, PASSED ON FIRST READING
AND ORDERED PUBLISHED this lith day of March , 1965.
(SEAL)
Attest:
E o
C:i ty" �'i erg
,s/ Harvey G. Johnson
Mayor
E. Time Consent Binding. Any consent given by
the holder of a bond pursuant to the provisions of this Sec-
tion shall be irrevocable for a period of six months from
the date of the publication of the notice above provided for
and shall be conclusive and binding upon all future holders
of the same bond during such period. At any time after six
months from the date of the publication of such notice, such
consent may be revoked by the holder who gave such consent
or by a successor in title by filing notice of such revoca-
tion with the City Clerk, but such revocation shall not be
effective if the holders of seventy-five per centum (75%) in
aggregate principal amount of the bonds outstanding as in
this Section defined have, prior to the attempted revocation,
consented to and approved the amendatory ordinance referred
to in such revocation.
F. Proof of Instruments. The fact and date of
the execution,of any instrument under the provisions of this
Section may be proved by the certificate of any officer in
any jurisdiction who by the laws thereof is authorized to
take acknowledgment of deeds within such jurisdiction, that
the person signing such instrument acknowledged before him
the execution thereof, or may be proved by an affidavit of
a witness to such execution sworn to before such officer.
G. Proof of Bonds. The amount and numbers of
the bonds held by any person executing such instrument and
the date of his holding the same may be proved by a certifi-
cate executed by a responsible bank or trust company showing
that on the date therein mentioned such person had on deposit
with such bank or trust company the bonds described in such
certificate.
Section 41. Ordinance Irrepealable. That after
any of the bonds herein authorized are issued, this ordi-
nance shall constitute a contract between the City and the
holder or holders of the bonds from time to time; and this
ordinance shall be and remain irrepealable until the bonds
and the interest on the bonds hereby authorized to be issued
and in fact actually issued, shall be fully paid, cancelled,
and discharged, as herein provided.
The City Clerk advised the Council that the affidavit of the first publieatiob of
the Water Bond Ordinance which was published in the Fort Collins Coloradoan in the issue of
March 16, 1965, had been received and is now on file. Motion was made by Councilwoman Quinn.
seconded by Councilman Colwell, that the affidavit be received, filed and be preserved on
the records of the City Clerk. Roll was called resulting as follows: Councilmen Colwell,
McMillan, Guyer and Councilwoman Quinn. Absent: Councilman Johnson, excused. Nayes: None,
The President declared the motion adopted.
The City Clerk advised the City Council that this was t he date for the hearing
and the second reading of the Water Bond Ordinance, being No. 16, 1965, as follows:
"AN ORDINANCE TO CONTRACT AN INDEBTEDNESS ON BEHALF OF THE CITY OF FORT COLLINS, COLORADO,
AND UPON THE CREDIT THEREOF, BY ISSUING THE NEGOTIABLE, COUPON, CITY OF FORT COLLINS, COLO-
RADO, GENERAL OBLIGATION WATER BONDS, SERIES JUNE 1, 1965, IN THE AGGREGATE PRINCIPAL AMOUNT
OF $3,2OO,OOO.O0 FOR THE PURPOSE OF SUPPLYING WATER TO SAID CITY BY CONSTRUCTING AND OTHER-
WISE ACQUIRING EXTENSIONS, ADDITIONS AND IMPROVEMENTS TO THE MUNICIPAL WATERWORKS SYSTEM AND
EVERYTHING NECESSARY OR INCIDENTAL THERETO, INCLUDING THE ACQUISITION OF ADMITIONAL SOURCES
OF WATER; P ESCRIBING THE FORM, TERMS AND CONDITIONS OF SAID BONDS, THE MANNER OF THEIR EXE-
CTrTION, THE METHOD OF PAYING THE BONDS AND THE SECURITY THEREFOR, AND OTHER DETAILS IN CON-
NECTION THEREWITH; PROVIDING FOR THE LEVY AND COLLECTION OF GENERAL (AD VALOREM) TAXES FOR
THE PAYMENT OF SAID BONDS; ALSO PROVIDING FOR THE DISPOSITION OF REVENUES FROM THE OPERATION
OF THE WATERWORKS SYSTEM; PROVIDING COVENANTS, AGREEMENTS ANOTHER DETAILS ANDMAKING OTHER
PROVISIONS CONCERNING SAID TAXES, SAID REVENUES, SAID SYSTEMp SAID BONDS, THE REVENUES
PLEDGED FOR THEIR PAYMENT, AND THE ISSUANCE OF ADDITIONAL BONDS PAYABLE FROM SAID REVENUES;
AND RATIFYING ACTION PREVIOUSLY TAKEN IN CONNECTION WITH THE FOREGOING."
The Assistant Mayor asked if there were anyone present who had anything to say
in reference to the ordinance before t he Council. No one indicated they desired to be
heard and motion was made by Counciman Colwell, seconded by Counilwoman Quinn, that this
ordinance be placed on second reading by title only and that all rules of the Council which
Might prevent, unless suspended, the final passage and adoption of said ordinance at this
'meeting, be and the same are hereby, suspended for the purpose of pern;itting the final
Passage and adoption of said ordinance at this meeting. Roll was called resulting as follows:
Ayes: Councilmen Colwell, McMillan, Guyer and Councilwoman Quinn. Absent: Councilman
Johnson, excused. Nayes: None. The President declared the motion adopted.
Four members of the Council having voted in favor of said motion, the Assistant
Mayor declared the motion carried and the rules suspended.
No member of the Council having requested that the ordinance be read in full, sai<
ordinance was read by the City Clerk by title only. Motion was made by Councilman 'Colwell,
seconded by Councilwoman Quinn, that said ordinance heretofore passed on first reading be
Placed upon its final passage. Roll was called resulting as follows: Ayes: Councilmen
Colwell, McMillan, Guyer and Councilwoman Quinn. Absent: Councilman Johnson, excused.
Mayes: None. The President declared the motion adopted.
The presiding officer declared the motion carried and said ordinance placed upon
Its final passage. Councilman Guyer moved that said ordinance be finally passed and adopted.
tion. Roll was called resulting as follows: Ayes:
ouncilwoman Quinn seconded the 'no
ouncilmen Colwell, McMillan, Guyer and Councilwoman Quinn. Absent: Councilman Johnson,
�Ouncld. Nayes: None. The presiding officer thereupon declared that at least a majority
d in favor thereof, the said motion was carried and the
if the members present having vote
Said ordinance duly passed and adopted.
Motion was made by Councilman Guyer, seconded by Councilwoman Quinn, that this
ordinance be numbered 16, 1965, and be finally published in the Fort Collins Coloradoan and
)e recorded according to law. Roll was called resulting as follows: Ayes: Councilmen
7o1we11, McMillan, Guyer and Councilwoman Quinn. Absent: Councilman Johnson, excused .
motion adopted.
Mayes: None. The President declared the
principal and interest, shall "be payable solely and only
out of the net revenue to be derived by the City from and
through the operation of its sewer system, and, if neces-
sary, out of the net revenue to be derived from the opera-
tion of its water system"; and
WHEREAS, the City has also heretofore issued,
pursuant to Ordinance No, 4, 1950, adopted and approved
the llth day of May, 1950, its general obligation Refunding
Water Bonds, dated the first day of April, 1950, in the
original principal amount of $600,000.00 (herein sometimes
designated .the "1950 refunding water bonds"), which are
now outstanding in the principal amount of $ i70,000.00 ;
and
WHEREAS, the City has also heretofore issued,
pursuant to Ordinance No. 15, 1954, adopted and approved
the 18th day of June, 1954, its General Obligation Water
Extension Bonds, dated the first day of June, 1954, in the
original principal amount of $1,500,000.00 (herein sometimes
designated the "1954 water extension bonds"),which are now
outstanding in the principal amount of $ 548,000.00 ; and
WHEREAS, except for the 1948 revenue bonds, the
1950 refunding water bonds, and the 1954 water extension
bonds, the City has never issued any bonds or other obliga-
tions which are still outstanding and which may be paid from
the revenues of the waterworks system or which were issued
for the extension, improvement, enlargement or betterment of
said system; and
WHEREAS, pursuant to the "6-1-65 sewer revenue
bond ordinance" which is to be passed simultaneously with
this ordinance, there will be deposited in a separate escrow
account thereby created and to be known as the "City of
Fort Collins, Colorado, Sewer Refunding and Improvement
Revenue Bonds, Series June 1, 1965, Refunding Fund" an
amount at all times at least sufficient, together with the
interest or other yield to be derived from the investment
or temporary reinvestment of the deposits in federal securi-
ties. as therein defined, to pay the principal of and the
ORDINANCE NO.16, 1965
AN ORDINANCE TO CONTRACT AN INDEBTEDNESS ON BEHALF
OF THE CITY OF FORT COLLINS, COLORADO, AND UPON THE
CREDIT THEREOF, BY ISSUING THE NEGOTIABLE, COUPON,
CITY OF FORT COLLINS, COLORADO, GENERAL OBLIGATION
WATER BONDS, SERIES JUNE 1, 1965, IN THE AGGREGATE
PRINCIPAL AMOUNT OF $3,2009000.00 FOR THE PURPOSE
OF SUPPLYING WATER TO SAID CITY BY CONSTRUCTING AND
OTHERWISE ACQUIRING EXTENSIONS, ADDITIONS AND IM-
PROVEMENTS TO THE MUNICIPAL WATERWORKS SYSTEM AND
EVERYTHING NECESSARY OR INCIDENTAL THERETO, INCLUD-
ING THE ACQUISITION OF ADDITIONAL SOURCES OF WATER;
PRESCRIBING THE FORM, TERMS AND CONDITIONS OF SAID
BONDS, THE MANNER AND TERMS OF THEIR ISSUANCE, THE
MANNER OF THEIR EXECUTION, THE METHOD OF PAYING THE
BONDS AND THE SECURITY THEREFOR, AND OTHER DETAILS
IN CONNECTION THEREWITH; PROVIDING FOR THE LEVY AND
COLLECTION OF GENERAL (AD VALOREM) TAXES FOR THE
PAYMENT OF SAID BONDS; ALSO PROVIDING FOR THE DIS-
POSITION OF REVENUES FROM THE OPERATION OF THE WATER-
WORKS SYSTEM; PROVIDING COVENANTS, AGREEMENTS AND
OTHER DETAILS AND MAKING OTHER PROVISIONS CONCERNING
SAID TAXES, SAID REVENUES, SAID SYSTEM, SAID BONDS,
THE REVENUES PLEDGED FOR THEIR PAYMENT, AND THE
ISSUANCE OF ADDITIONAL BONDS PAYABLE FROM SAID
REVENUES; AND RATIFYING ACTION PREVIOUSLY TAKEN IN
CONIECTION WITH THE FOREGOING.
WHEREAS, the City of Fort Collins (herein sometimes
merely designated as the "City"), in the County of Larimer
and State of Colorado (herein sometimes designated as the
"State"), is a political subdivision of the State, a body
corporate and politic and a home rule city with a "Council. -
Manager government" pursuant to Article XX of the Constitu-
tion of the State of Colorado and the Charter of the City
(herein sometimes designated as the "Charter"); and
Gm
"The Council shall by ordinance from time to
time fix, establish, maintain, and provide for the
collection of such rates, fees, or charges for water
and electricity, and for water, sewer, and electric
service furnished by the City as will produce reve-
nues sufficient to pay the cost of operation and
maintenance of said utilities in good repair and
working order; to pay the principal of and interest
on all bonds of the City payable from the revenues
of said utilities; to provide and maintain an ade-
quate fund for replacement of depreciated or obso-
lescent property; to provide a fund for the extension,
improvement, enlargement, and betterment of said
utilities; to pay the interest on and principal of
any general obligation bonds issued by the City to
extend or improve said utilities. The provisions
hereof shall be subject at all times to the perfor-
mance by the City of all covenants and agreements
made by it in connection with the issuance, sale,
or delivery of any bonds of the City payable out
of the revenues derived from the operation of its
water, electric, and other utilities, whether such
revenue bonds be heretofore or hereafter issued,
"Any surplus revenue produced from the operation
of any utilities after meeting all the requirements
set forth above shall be paid into the general fund
of the City in lieu of taxes,"
and
WHEREAS, the City has heretofore issued, pursuant
to Ordinance No. 5-1948, adopted and approved on the 24th
day of dune, 1948, its Sewer and Water Revenue Bonds, dated
the first day of March, 1948, in the original principal
amount of $195,000.00 (herein sometimes designated the 1948
revenue bonds), which are now outstanding in the principal
amount of $ 35,000.00 ; and
WHEREAS, Section 1 of said Ordinance No. 5-1948
provides in part that said 1948 revenue bonds, both as to
WHEREAS, the City now owns and operates a muntcip®1
waterworks system (sometimes referred to herein as the
"waterworks system" or as the "system"); and
WHEREAS, the City's present water treatment,
distribution and storage facilities and water supply are
inadequate, and in order that the present and future needs"
of the inhabitants of the City may be met, it is necessary
to supply water to the City by constructing and otherwise
acquiring extensions, additions, and improvements to the
municipal waterworks system and everything necessary or
incidental thereto, including the acquisition of additional
sources of water (hereafter sometimes referred to as the
"Project"); and
WHEREAS, there are not sufficient funds in the
treasury of said City to provide for the necessary exten-
sions, additions, and improvements to the waterworks system;
and
WHEREAS, Section 20(d), Part II, Article V of the
Charter, as amended, provides that the Council has the
power to issue general obligation bonds, without an elec-
tion, to evidence debts contracted for supplying water to
such City, said bonds and interest thereon to be payable
at such time or times and upon such terms and conditions,
not otherwise inconsistent with the Charter, as the Council
may by ordinance determine; and
WHEREAS, Section 7, Part I, Article V of the
Charter provides as follows.
"The mill levy shall not exceed fifteen mills
on each dollar of assessed valuation of taxable
property within the City for all purposes. Any
mill levy in excess of the fifteen mills aforesaid
shall be absolutely void as to the excess and it
shall be unlawful for the assessor to extend and
for the treasurer to collect any such excess,"
and
WHEREAS, Section 6, Article IX of the Charter
provides in part as follows:
hereby ordered to be, extended, added to, and improved, at
a total cost of not exceeding $3,200,000.00, excluding any
such cost defrayed or to be defrayed by any source other
than the proceeds of the bonds.
Section 3, Estimated Cost of Project. That the
cost of the Project is estimated not to exceed $3,200,000.00,
excluding any such cost defrayed or to be defrayed by any
source other than the proceeds of the bonds.
Section 4. Authorization of Bonds. That for the
purpose of protecting the public health, conserving the
property and advancing the general welfare of the citizens
of the City, and for the purpose of the Project, it is
hereby declared necessary that the City make and issue,
and there are hereby authorized to be issued, pursuant to
the provisions of the Charter, the "City of Fort Collins,
Colorado, General Obligation Water Bonds, Series June 1,
1965," in the principal amount of $3,200,000.00.
Section 5, Bond Details. That the bonds shall
be dated as of the first day of June, 1.965, shall consist
of 640 bonds numbered consecutively from 1 to 640, both
inclusive, in the denomination of $5,000.00 each, payable
to bearer, bearing interest from date until their respective
maturities at a rate or rates of not exceeding form and
one-half per centum (4-1/2%) per annum, to be hereafter
established after the public sale of the bonds, interest
being payable on the first day of December, 1965, and semian-
nually thereafter on the first days of June and December in
each year, and being evidenced until maturity by one set
of coupons payable to bearer and attached to the bonds,
the bonds being numbered and maturing serially in regular
numerical, order on the first day of December in each of the
designated amounts and years, as follows.
interest on the outstanding 1948 revenue bonds, both accrued
and not accrued, as the same become due, to the respective
maturities of the 1948 revenue bonds; and
WHEREAS, the Council has determined, and does
hereby determine that the interest of the City and the
public demand:
(1) The Project; and
(2) The creation of a bonded indebtedness in
the principal amount of $3,200,000.00 (herein some-
times designated as the "bonds"), to defray in whole
or in part the cost of the Project; and
WHEREAS, although the bonds to be issued pursuant
to this ordinance will be general obligation bonds of the
City payable from general (ad valorem) taxes which may be
levied against the taxable property within the City, subject
to the limitation imposed by the Charter, it is the inten-
tion of the Council to provide for the payment of the prin-
cipal of and the interest on the 1965 water bonds, as well
as the principal of and the interest on the 1950 refunding
water bonds, the 1954 water extension bonds, and any other
bonds permitted by this ordinance to be hereafter issued for
the purpose of extending, improving, enlarging or bettering
the waterworks system by the application of the net revenues
of the waterworks system (subject to designated exceptions)
to such payment, thereby eliminating or reducing the amounts
which it might otherwise be necessary to raise by general
taxation.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF
THE CITY'OF FORT COLLINS, COLORADO:
Section 1. Ratification. That all action here-
tofore taken (not inconsistent with the provisions of this
ordinance) by the Council and the officers of the City,
directed toward the Project and toward the issuance of its
bonds for that purpose be, and the same is hereby ratified,
approved and confirmed.
Section 2. Authorization of Project. That pursuant
to the Charter, the waterworks system shall be, and the same is
of
maturities, at the option of the City, in inverse numerical
order, on the first day of December, 1974, or on any inter-
est payment date thereafter prior to maturity, upon payment
of the principal amount of each bond so redeemed, accrued
interest thereon to the redemption date, and no premium.
Section 7. Notice of Prior Redemption. That
notice of redemption shall be given by the Director of
Finance and ex-officio City Treasurer, in the name of the
City, by publication of such notice at least once, not less
than thirty days prior to the redemption date, in a news-
paper of general circulation in the City, and a copy of
such notice shall be sent by registered, first-class, post-
age prepaid, mail at least thirty days prior to the redemp-
tion date, to the original purchaser of the bonds or the
manager of any purchasing syndicate (herein sometimes
designated as the "Purchaser"). Such notice shall specify
the number or numbers of the bonds to be so redeemed (if
less than all are to be redeemed) and the date fixed for
redemption, and shall further state that on such redemption
date there will become and be due and payable upon each
bond so to be redeemed at the office of the Director of
Finance and ex-officio City Treasurer, in Fort Collins,
Colorado, the principal amount thereof, accrued interest
thereon to the redemption date, and the stipulated premium,
if any, and that from and after such date interest will
cease to accrue. Notice having been given in the manner
hereinbefore provided, the bond or bonds so called for
redemption shall become due and payable on the redemption
date so designated, and upon presentation thereof at said
office, together with all. appurtenant coupons maturing
subsequent to the redemption date, the City will pay the
bond or bonds so called for redemption.
Section 8. Negotiability. That subject to the
provisions specifically made or necessarily implied herein,
the bonds and coupons appertaining thereto shall be fully
negotiable and shall have all the qualities of negotiable
paper, and the holder or holders thereof shall possess all
Bond Numbers
Amounts
Years
(All Inclusive)
Maturing
Maturing
1 -
3
$ 15,000.00
1967
4 -
6
15,000.00
1968
7 -
9
15,000.00
1969
10 -
34
125,000.00
1970
35 -
65
155,000.00
1971
66 -
98
165,000.00
1972
99 -
132
170,000.00
1973
133
- 167
175,000.00
1974
168
- 203
180,000.00
1975
204
- 240
185,000.00
1976
241
- 279
195,000.00
1977
280
- 319
200,000.00
1978
320
- 360
205000.00
1979
361
- 403
215:000.00
1980
404
- 447
220,000.00
1981
448
- 493
230,000.00
1982
494
- 540
235,000.00
1983
541
- 589
245,000.00
1984
590
- 640
255,000.00
1985
both the principal of and the interest on the bonds being pay-
able in lawful money of the United States of America, without
deduction for exchange or collection charges, at the office
of the Director of Finance and ex-officio City Treasurer, in
Fort Collins, Colorado. If any of the bonds is not paid upon
presentation at its maturity, interest thereon shall continue
at the rate of six per centuua (6%) per annum until the prin-
cipal thereof is paid in full.
Section 6. Prior Redemption. That bonds numbered
1 to 167, both inclusive, maturing on or before the first day
of December, 1974, shall be subject to redemption prior to
their respective maturities, at the option of the City, in
regular numerical order, on the first day of ,Dune, 1967, or on
any interest payment date thereafter prior to maturity, upon
payment of the principal amount of each bond so redeemed,
accrued interest thereon to the redemption date, and a premium
consisting of five per centum (5%) of the principal amount of
each bond so redeemed. The prior redemption option hereinabove
provided in this Section 6 hereof shall not be exercised for
the purpose of refunding the bonds called for prior redemption
without the specific written consent to such call by the holders
of those bonds, except as hereinafter provided. For all purposes,
including refunding, bonds numbered 168 to 640, both inclusive,
maturing on and after the first day of December, 1975,
shall be subject to redemption prior to their respective
0-B
(Form of Bond)
UNITED STATES OF AMERICA
COUNTY OF LARIMER
STATE OF COLORADO
CITY OF FORT COLLINS
GENERAL O1965
OBLIGATION
WATER BOND
SERIE
No.
$5,000.00
The City of. Fort Collins (herein sometimes desig-
nated as the "City"), in the County of Larimer and State of
Colorado, for value received, acknowledges itself indebted
and hereby promises to pay to the bearer hereof the sum of
FIVE THOUSAND DOLLARS
on the first day of December, 19®, with interest thereon
from date until maturity at the rate of
per centum ( %)
per annum, evidenced until maturity by only one It of
interest coupons, payable on the first day of December, 1965,
and semiannually thereafter on the first days of June and
December in each year, upon presentation and surrender of
this bond and the annexed interest coupons as they severally
become due. If upon presentation at its maturity, payment
of this bond is not made as herein provided, interest shall
continue hereon at the rate of six per cent, (67) per annum
until the principal hereof is paid in full. Both principal
and interest are payable in lawful money of the United Statea
of America, without deduction for exchange or collection
charges, at the office of the Director of Finance and ex-
officio City Treasurers in Fort Collins, Colorado,
This bond is one of a series of bonds Bonds are
subject t.o redemption prior to maturity- December,
of ecember, 19 id series
are
maturing on and before the first day ies in
subject to redemption prior to their resp ecc tive maturJune, 196itit or on
regular numerical order on the first d
ay any interest payment date thereafter prior to maturity, for
ttie principal amount thereof, accrued interest to the redemption
rights enjoyed by the holders of negotiable instruments
under the provisions of the Negotiable Instruments Law.
Section 9, Execution. That the bonds shall be
executed in the name of and on behalf of the City,and
authenticated with the manual signature of the Mayor,
shall be countersigned with the facsimile signature of the
Director of Finance and ex-officio City Treasurer, and
shall be attested with the facsimile signature of the City
Clerk, with the facsimile of the seal of the City affixed
thereto. The interest. coupons appertaining thereto shall
be executed and authenticated by the facsimile signatures
of said officers. Said bonds and coupons bearing the sig-
natures of the officers in office at the time of the signing
thereof shall be the valid and binding obligations of the
City, notwithstanding that before the delivery thereof and
payment therefor any or all of the persons whose signatures
appear thereon shall have ceased to fill their respective
offices. The Mayor by the execution of the bonds and all
of said officers by the execution of a signature certificate
shall adopt as and for their signatures the facsimiles
thereof appearing upon any of the bonds or coupons. In
the event that at the time of executing the bonds or a
signature certificate the manual or facsimile signature of
a predecessor in office of any officer appears on the bonds
or coupons, said officer may, in like manner, adopt as and
for his own signature the manual or facsimile signature of
his predecessor.
Section 10. Bond and Coupon Forms. That the
bonds and the coupons thereto attached shall be in substan-
tially the following form:
sufficient to pay the interest on and the principal of this
bond when the same become due (except to the extent other
funds are available therefor), subject to the limitation
imposed by the Charter of the City; and that the full faith
and credit of the City are hereby irrevocably pledged to the
punctual pent of the principal of and the interest on
this bond according to its terms.
The payment of the bonds and the interest thereon
is additionally secured by an irrevocable pledge of the net
revenues derived by the City from the operation of the water-
works system (subject to designated exceptions), as provided
in Ordinance No. _, passed, adopted, signed and approved
on the _ day of , 1965, which authorized the issu-
ance of the bonds. For a description of the nature and extent
of the security afforded thereby for the payment of the prin-
cipal of and the interest on the bonds, reference is made to
said ordinance. The bonds are equitably and ratably secured
by a lien on said net revenues, and the bonds constitute an
irrevocable and first lien (but not necessarily an exclusively
first lien) upon said net revenues (subject to designated
exceptions). Said ordinance provides that the principal of
and interest on the City's general obligation Refunding Water
Bonds, dated the first day of April, 1950, and the City's
General Obligation Water Extension Bonds, dated the first
day of June, 1954, shall be paid from said net revenues on
a parity with the bonds of the series of which this bond is
one. Bonds in addition to the series of which this is one,
subject to expressed conditions, may be issued and made pay-
able from said net revenues, having a lien thereon subordinate,
inferior and junior to the lien, or, subject to additional
expressed conditions, having a lien thereon on a parity with
the lien, of the bonds of the series of which this is one,
in accordance with the provisions of said ordinance.
IN WITNESS WHEREOF, the City of Fort Collins has
caused this bond to be executed and authenticated in its
name with the manual signature of the Mayor of the City of
Fort Collins and countersigned by the facsimile signature of
date, and a premium of five per centum (57.) of the principal
amount of each bond so redeemed. The prior redemption option
hereinabove provided. shall not be exercised for the purpose
of refunding the bonds called for prior redemption without
the specific written consent to such call by the holders of
those bonds, except as hereinafter provided. For all pur-
poses, including refunding, bonds of said series maturing on
and after the first day of December, 1975, are subject to
redemption prior to their respective maturities in inverse
numerical order on the first day of December, 1974, or on any
interest payment date thereafter prior to maturity, for the
principal amount of each bond so redeemed and accrued interest
thereon to the redemption date. Redemption shall be made upon
not less than thirty days prior notice by publication and by
mail in the manner and upon the conditions provided in the
ordinance authorizing the issuance of this bond.
This bond is one of a series of bonds (herein
sometimes designated as the "bonds") issued by the City
Council of the City on behalf of said City and upon the
credit thereof for the purpose of supplying water to the City
by constructing and otherwise acquiring extensions, additions,
and improvements to the municipal waterworks system and
everything necessary or incidental thereto, including the
acquisition of additional sources of water, under the author-
ity of and in full conformity with the Constitution of the
State of Colorado and the Charter and ordinances of the City
of Fort Collins, and pursuant to an ordinance of said City
duly adopted, published, and made a law of said City prior
to the issuance of this bond.
It is hereby certified, recited and warranted that
all the requirements of law have been fully complied with by
the proper officers of the City in the issuance of this bond;
that the total indebtedness of the City, including that of
this bond, does not exceed any limit of indebtedness pre-
scribed by the Constitution or laws of the State of Colorado
or the Charter of the City; that provision has been made for
the levy and collection of annual general (ad valorem) taxes
(Form of Coup )
on the CityyUs Director of Finance and ex-officio City Treasurer,
and attested with the facsimile signature of the City Clerk,
Coupon has caused the facsimile of the seal of the City to be
No. $ affixed hereon, and has caused the interest coupons apper-
Junes taining hereto to be executed. with the facsimile signatures
on the first day of December, 19®, unless of said officers, all as of the first day of June, 1965.
the bond to which this coupon is attached is called for
prior redemption, the City of Fort Collins, in the County CITY OF FORT COLLINS
of Larimer and State of Colorado, will pay to bearer in
lawful money of the United States of America, at the office By (For Manual Signature)
of the Director of Finance and ex-officio City Treasurer, Mayor
in Fort Collins, Colorado, the amount herein stated, being (FACSIMILE SEAL)
six months' interest on its City of Fort Collins, Colorado,
General obligation Water Bond, Series June 1, 1965, and Attest:
bearing
(For Facsimile Signature)
Bond City C er
No. Countersigned -
(For Facsimile Signature)
Mayor
(For Facsimile Signature)
Director of Finance
(For Facsimile Signature)
City Clerk
(End of Form of Coupon)
(For Facsimile Signature)
Director ot Finance
(End of For® of Bond)
Section 15. Duties to Make Tax Levies. That it
shall be the duty of the Council, annually, at the time and
in the manner provided by law for levying other City taxes,
if such action shall be necessary to effectuate the provi-
sions of this ordinance, to ratify and carry out the provi-
sions hereof with reference to the levying and collection of
taxes; and the Council shall require the officers of and for
the City to levy, extend and collect such taxes in the man-
ner provided by law for the purpose of creating a fund for
the payment of the principal of the bonds and interest there-
on, and such taxes, when collected, shall be kept for and
applied only to the payment of the interest and principal of
the bonds as hereinbefore specified.
Section 16. Fiscal Year. That for the purposes of
this ordinance, the waterworks system shall be operated upon
a fiscal year basis commencing on the first day of January
in each calendar year and ending on the last day of December
of the same year (herein sometimes designated as "Fiscal Year").
Section 17. Water Fund, That so long as any of
the bonds shall be outstanding, either as to principal or
interest, or both, the entire gross income and revenues of
the waterworks system shall be set aside and credited to a
special account hereby created and to be known as the "Fort
Collins Waterworks System Revenue Fund" (herein sometimes
designated as the "Water Fund"), provided, however, that the
City Is existing water main assessments and water tap fees and the
plant investment fees which the City will impose by Ordinance
No, , to be finally passed and adopted on the day of
1965, may, at the option of the City, not be included
in gross revenues but may be credited to the City's water capital
improvement fund or funds.
Section 18. Administration of Water Fund. That
so long as any of the bonds shall be outstanding, either as
to principal or interest, or both, the following payments
shall be made from the Water Fund:
A. 0. & M. Expenses. Firstly, as a first charge
thereon, there shall be set aside each month moneys
sufficient to pay operation and maintenance expenses
as they become due and payable, and thereupon they
Shall be promptly paid. Any surplus remaining at the
end of the fiscal year and not needed for operation
and maintenance expenses, shall be transferred to the
Section 11. Bond Preparation, Execution and
Delivery. That the Mayor, Director of Finance and City Clerk
are hereby authorized and directed to prepare and execute the
bonds as herein provided. When the bonds have been duly
executed and sold, the Director of Finance shall deliver them
to the Purchaser on receipt of the agreed -upon purchase price.
Section 12. Use of Bond Proceeds. That the pro-
ceeds realized from the sale of the bonds shall be applied
solely for the Project and for no other purpose whatsoever,
but the Purchaser shall in no manner be responsible for the
application or disposal by the City, or any of its officers,
of any of the funds derived from the sale thereof. The City
may, at its option, use proceeds realized from the sale of the
bonds, to the extent necessary, for the purpose of paying in-
terest accruing on said bonds on December 1, 1965; provided,
however, that any amounts so utilized shall be replaced from
the first revenues of the system thereafter received not
herein required to be otherwise applied.
Section 13. General Taxes, That for the purpose of
providing the necessary funds to pay the interest and principal
accruing on the bonds, there shall be levied on all taxable
property of the City, in addition to all other taxes, direct
,annual taxes sufficient to pay the principal of and the interest
on the bonds promptly as the same respectively shall become due,
subject to the limitation imposed by the City Charter; and said
taxes, when collected, shall be placed into a special account
hereby created and to be known as the "City of Fort Collins,
Colorado, General Obligation Water Bonds, Series June 1, 1965,
Interest and Bond Retirement Fund" (hereinafter sometimes desig-
nated as the "Bond Fund"), and applied solely for the purpose of
paying the principal of and the interest on the bonds, respec-
tively, and for no other purpose whatever until the bonds
authorized by this ordinance, principal and interest, shall be
fully paid, satisfied and discharged.
Section 14. Use of Other Funds. That nothing
herein contained shall be so construed as to prevent the
City from applying any other funds that may be in the City
Treasury and available for that purpose for the payment of
said interest or principal as the same respectively mature,
and the levy or levies provided for may thereupon to that
extent be diminished.
1950 refunding water bonds, and monthly there-
after, one -sixth of the amount necessary to pay
the next maturing installment of interest on the
outstanding 1950 refunding water bonds.
(2) Monthly, an amount in equal monthly
installments necessary, together with any moneys
therein and available therefor, to pay the next
maturing installment of principal on the out-
standing 1950 refunding water bonds, and monthly
thereafter, one -twelfth of the amount necessary
to pay the next maturing installment of principal
on the 1950 refunding water bonds.
D. 1954 Water Extension Bond Fund Payments.
Thirdly, but concurrently with the payments required
to be made by paragraph C of this section 18 hereof,
there shall continue to be deposited into a special
fund known as the "Water Extension Bond Fund," hereto-
fore established by the City for the purpose of paying
the 1954 water extension bonds, the following-
(1) Monthly, an amount in equal monthly
installments necessary, together with any moneys
therein and available therefor, to pay the next
maturing installment of interest on the outstand-
ing 1954 water extension bonds, and monthly
thereafter, one -sixth of the amount necessary
to pay the next maturing installment of interest
on the outstanding 1954 water extension bonds,
(2) Monthly, an amount in equal monthly
installments necessary, together with any moneys
therein and available therefor, to pay the next
maturing installment of principal of the out-
standing 1954 water extension bonds, and monthly
thereafter, commencing on said principal payment
date, one -twelfth of the amount necessary to pay
the next maturing installment of principal on the
1954 water extension bonds.
Water Fund and b as
e used for the purposes thereof:
herein provided.
B. Operation and Maintenance Expenses. For pur-
poses of this ordinance, "operation and maintenance
expenses" (or a phrase of similar import) means all
reasonable and necessary current expenses of the City,'
paid or accrued, of operating, maintaining and repairing
the waterworks system; and the term may include at the
City°s option (except as limited by law), without limit-
ing the generality of the foregoing, legal and overhead
expense of the various city departments directly related
and reasonably allocable to the administration of the
waterworks system, insurance premiums, the reasonable
charges of any depositary bank or paying agent apper-
taining to the waterworks system, contractual services,
professional services required by this ordinance, salar-
ies and administrative expenses, labor, and the cost of
materials and supplies used for current operation, but
shall not include any allowance for depreciation, lia-
bilities incurred by the City as the result of its neg-
ligence in the operation of the waterworks system, or
other ground of legal liability not based on contract,
and shall not include the costs of improvements, exten-
sions, enlargements or betterments, or any charges for
the accumulation of reserves for capital replacements.
C. 1950 Refunding Water Bond Fund Payments.
Secondly, and subject to the aforesaid provisions, from
any moneys remaining in the Water Fund, i.e., from the
net income of the waterworks system, there shall con-
tinue to be deposited and paid into a special fund
known as the "Refunding Water Bond Fund, Series 1950,"
heretofore established by the City for the purpose of
paying the 1950 refunding water bonds, the following.
(1) Monthly, an amount in equal monthly
installments necessary, together with any moneys
therein and available therefor, to pay the next
maturing installment of interest on the outstanding
G. Defraying Delinquencies in Bond Funds. If, in
any month, the City shall, for any reason, fail to pay
into the Refunding Water Bond Fund, Series 1950, the
Water Extension Bond Fund and the Bond Fund the full
amount above stipulated from the remaining net revenues
of the waterworks system, than an amount shall be paid
into the Refunding Water Bond Fund, Series 19.50, the
Water Extension Bond Fund, and the Bond Fund in such
month equal to the difference between the amount paid
and the amount so stipulated from the first revenues
thereafter received from the operation of the waterworks
system not hereinabove required to be otherwise applied.
The moneys in the Refunding Water Bond Fund, Series 1950,
the Water Extension Bond Fund and the Bond Fund shall be
used solely and only for the purpose of paying the prin-
cipal of and the interest on the bonds to which such funds
respectively appertain; provided, however, that any moneys
in each of said funds in excess of accrued and unaccrued
principal and interest requirements to the respective
maturities of the outstanding bonds to which such funds
respectively appertain may be used as hereinabove pro-
vided in subsection F of this section 18.
H. Payment for Additional Obligations. Fifthly,
but either subsequent to or concurrently with the pay-
ments required by subsections C. D and E of this section
18, as provided in sections 22 and 23 hereof, any bal-
ance remaining in the Water Fund after making the pay-
ments hereinabove provided, shall be used by the City
for the payment of interest on and the principal of
additional bonds or other additional obligations here-
after authorized to be issued and payable from the reve-
nues of the waterworks system, including reasonable
reserves therefor, if any, as the same accrue; provided
that the lien of such additional bonds or other addition-
al obligations on the net income and revenues of the
waterworks system and the,pledge thereof for the payment
of such additional obligations shall be on a parity with,
or subordinate, inferior and junior to, the lien and
pledge of the bonds herein authorized as provided in Sec=
E. Bond Fund Payments. Fourthly, but concurrently
with the payments required to be made by paragraphs C
and D of this section 18 hereof, there shall be depos-
ited into the Bond Fund (hereinabove created in section.
13 hereof), except to the extent provision has been
made to deposit therein.in the same Fiscal Year the
proceeds of general (ad valorem) taxes or moneys other
than waterworks system revenues, the following^
(1) Monthly, commencing on the _ 1st day of
June , 196_5., an amount in equal monthly
iit'stallments necessary, together with any moneys
therein and available therefor, to pay the next
maturing installment of interest on the bonds then
outstanding, and monthly thereafter commencing on
said interest payment date one -sixth of the amount
necessary to pay the nett maturing installment of
interest on the outstanding bonds.
(2) Monthly, commencing on the 1st day of
Depember , 196 4,, an amount in equal monthly
installments necessary, together with any moneys
therein and available therefor, to pay the next
maturing installment of principal of the outstand-
ing bonds, and monthly thereafter commencing on
said principal payment date one -twelfth of the
amount necessary to pay the next maturing
installment of principal on the bonds.
F. Termination upon Deposits to Maturity. No
payment need be made into the Bond Fund if the amount
therein totals a sum at least equal to the entire
amount of the outstanding bonds, both as to principal
and interest to their respective maturities, and both
accrued and not accrued, in which case moneys in said
fund in an amount at least equal to such principal and
interest requirements shall be used solely to pay such
as the same accrue, and any moneys in excess thereof in
said fund and any other moneys derived from the opera-
tion of the waterworks system may be used in any lawful
manner determined by the Council.
tion 22 hereof,— except a-s provides in seetior, 23 hereof. `
a
direct obligations of, or the principal and interest
of which are unconditionally guaranteed by, the United
States of America (herein sometimes designated as
"Federal Securities"), which shall be subject to redemp-
tion at face value by the holder thereof at the option
of such holder, or which shall mature not later than
ten years from the date of such investment; provided,
however, that the maturity of any security which is not
subject to prior redemption at the holder's option shall
not exceed the estimated date of the probable expenditure
or use of the moneys evidenced by such security. The
Federal Securities so purchased as an investment of moneys
in any such account shall be deemed at all times to be a
part of said account, and the interest accruing thereon
and any profit realized therefrom shall be credited to
the account to which the investment appertains, and any
loss resulting from such investment shall be charged to
such account. Moneys in any account designated in
sections 12, 13, 17 and 18 hereof not immediately needed
as hereinabove provided in this paragraph A of this
section 19, may also be invested or reinvested in a savings
account in a state or federal savings and loan association
in Colorado which is a member of the Federal Savings and
Loan Insurance Corporation, so long as the payment of any
account is fully secured under the appropriate federal
law. The Director of Finance shall present for redemption
or sale on the prevailing market any Federal Securities so
purchased as an investment of moneys in the fund or account
whenever it shall be necessary to do so in order to provide
moneys to meet any payment or transfer from such account,
C. Character of Funds. The moneys in any account
herein authorized shall consist either of lawful money of
the United States of America, or Federal Securities, or both
such money and such securities. Moneys deposited in a
demand or time deposit account in, or evidenced by a cer-
tificate of deposit of, an Insured Bank, or deposited in a
state or federal savings and loan association in Colorado
which is a member of the Federal Savings and Loan Insurance
Corporation, the payment of which is fully secured as
hereinabove provided, shall be deemed lawful money of the
United States of America. This section 19 shall have no
u p�.l lcac3.,n co the Rafu &19 Water Bond Fund, SeYles 1950,
I. Use of Surplus Revenues. After making the pay-
ments hereinabove required to be made by subsections A
to H, both inclusive, of this section 18 hereof, the re-
maining income and revenues derived from the operation
of the waterworks system, if any, may be applied to any
other lawful purpose or purposes authorized by the Con-
stitution and laws of the State and the resolutions,
ordinances and Charter of the City, as the same may be
from time to time amended, as the Council may direct.
Section i9. General Administration of Accounts.
That the accounts designated in sections 13, 17 and 18
hereof shall be administered as follows-.
A. Places and Times of Deposits. Each of the
accounts hereinabove designated in sections 13, 17 and
18 hereof shall be maintained and accounted for sepa-
rately from all other funds and accounts and shall be
deposited in a bank or banks, each of which is a member
of the Federal Deposit Insurance Corporation (herein
sometimes designated as an "Insured Bank"); but each
fund and account need not necessarily constitute a
separate bank account. Each bank account shall be con-
tinuously secured to the fullest extent required or per-
mitted by the laws of Colorado for the securing of public
funds, and shall be irrevocable and not withdrawable by
anyone for any purpose other than the respective desig-
nated purposes. Each monthly payment shall be credited
to the proper account on the first day of each month,
except that when the first day of any month shall be a
Sunday or a legal holiday, then such payment shall be
made on the next preceding secular day. Notwithstanding
any other provision herein to the contrary, moneys shall
be credited with the Director of Finance as bond paying
agent at least five days prior to each interest payment
date herein designated sufficient to pay the interest
and any principal then becoming due on the bonds.
B. Investment of Moneys. Any moneys designated
in sections 12, 13, 17 and 18 hereof not needed for
immediate use may be invested or reinvested by the
Director of Finance in bills, certificates of indebted-
r,o_.s_ a�cc-. bonds or similar socur2c Yos which arc
(2) The annual revenues derived from the opera-
tion of the waterworks system for the Fiscal Year
immediately preceding the date of the issuance of
such additional parity obligations shall have been
sufficient to pay the annual operation and mainte-
nance expenses of the waterworks system for said
Fiscal Year, and, in addition, sufficient to pay an
amount representing one hundred twenty-five per
centum (125%) of the combined maximum annual princi-
pal and interest requirements of the outstanding
bonds and other obligations of the City payable from and
constituting a lien upon the revenues of the waterworks
system (excluding any reserves therefor) provided that
in determining the amount of revenues pursuant to this
Section 22, there shall be excluded any water main
assessments, water tap fees, and plant investment
fees which the City shall have determined not to
include in gross revenues as herein provided; and
(3) The estimated annual revenues to be de-
rived from the operation of the waterworks system
for the twelve months immediately succeeding the
completion of the extension, improvement, enlarge-
ment or betterment effected, in whole or in part,
with the proceeds from the parity obligations to
be issued reduced by an amount equal to 25% of
estimated revenues to be derived from the proposed
extension, improvement, enlargement or betterment
of the waterworks system to be acquired with parity
obligations to be so issued shall be an amount
equal to the sum of the following:_ (a) the esti-
mated operation and maintenance expenses of the
waterworks system for said twelve months, (b) an
amount representing one hundred twenty-five per
centum (125%) of the combined maximum annual prin-
cipal and interest requirements of the outstanding
bonds and other obligations of the City then pay-
able from and constituting a lien upon the revenues
of the waterworks system and the bonds or other
obligations proposed to be issued (excluding any
reserves therefor).
or to the Water Extension Bond Fund. Moneys in each of
said funds may be invested as provided by law.
Section 20. First Lien Bonds. That the bonds, sub-
ject to the payment of all necessary and reasonable operation
and maintenance expenses of the waterworks system, constitute
an irrevocable and first lien (but not necessarily an exclu-
sively first lien) upon the revenues derived from the opera-
tion of the waterworks system.
Section 21. Lien of Outstanding Bonds. That for
the purposes of this ordinance, the outstanding 1950 refunding
water bonds and 1954 water extension bonds, subject to the pay-
ment of all necessary and reasonable operation -and maintenance
expenses of the waterworks system, shall be treated as if said
bonds constituted an irrevocable and first lien (but not neces-
sarily an exclusively first lien) upon the revenues derived
from the operation of the waterworks system on a parity with
the lien of the bonds authorized by this ordinance.
Section 22. Additional Bonds or Other Obligations.
A. Limitations upon Issuance of Parity Obligations.
That nothing in this ordinance contained shall be con-
strued in such a manner as to prevent the issuance by the
City of additional bonds or other obligations payable
from the income or any revenues derived from the operation
of the waterworks system and constituting a lien upon said
revenues on a parity with, but not prior nor superior to,
the lien of the bonds herein authorized, nor to prevent
the issuance of bonds or other obligations refunding all
or a part of the bonds herein authorized; provided, how-
ever, that before any such additional parity bonds or other
parity obligations are authorized or actually issued, in-
cluding any parity refunding bonds or other parity refund-
ing obligations (but excluding any obligations refunding
other than subordinate bonds or other subordinate obliga-
tions, as permitted in section 24 hereof):
(1) The City shall not have defaulted in making
any payments required by section 18 hereof during the
twelve months immediately preceding the issuance of
such additional bonds or other additional obligations,
or if none of the bonds herein authorized have been
issued and outstanding for a period of at least twelve
months, for the longest period any of the bonds herein
authorized have been issued and outstanding; and
authorized to be issued.
F. Use of Proceeds. The proceeds of any
additional bonds or other additional obligations
(other than any refunding obligations) payable from
revenues of the waterworks system on a parity with
the bonds herein authorized shall be used only for
extending, improving, enlarging and bettering the
waterworks system, and acquiring additional sources
of water.
Section 23. Refunding Bonds. That the
provisions of section 22 hereof are subject to the
exceptions:
A. Privilege of Issuing Refunding Obligations.
That if at any time after the bonds herein authorized,
or any part thereof, shall have been issued and
remain outstanding, the Council shall find it desir-
able to refund any outstanding bonds or other out-
standing obligations payable from and constituting
a lien upon any revenues of the waterworks system,
said bonds or other obligations, or any part
thereof, may be refunded (but only with the consent
of the holder or holders thereof, unless the bonds
or other obligations at the time or times of
their required surrender for payment, shall then
mature, or shall be then callable for prior
redemption at the City°s option upon proper call),
regardless of whether the priority of the lien
for the payment of,the refunding obligations on
the revenues of the waterworks system is changed
(except as provided in paragraph E of section 22
hereof and in paragraphs B and C of this
section 23).
B. Limitations upon Issuance of Parity
Refunding Obligations. That no refunding bonds
B. Certification of Earnings. A written certifi-
cation by any registered or licensed professional
engineer, or any firm of such engineers, having a wide
and favorable repute for skill and experience in the
field of designing, preparing plans and specifications
for, and supervising construction of vuterworks systems and
facilities, entitled to practice and practicing as such
under the laws of the State of Colorado, retained and
compensated by the City, but not in the regular employ
of the City, shall be conclusively presumed to be
accurate in determining the right of the City to author-
ize, issue, sell and deliver said additional bonds or
other additional obligations on a parity with the bonds
herein authorized; provided, however, that the written
certification shall be submitted to Boettcher and
Company, Denver, Colorado, for review at least 30 days
prior to the authorization of any additional bonds as
permitted by this paragraph.
C. Consideration of Additional Expenses. In
determining whether or not additional parity bonds or
other additional parity obligations may be issued as
aforesaid, consideration shall be given to any probable
increase (but not reduction) in operation and maintenance
expenses that will result from the expenditure of the
funds proposed to be derived from the issuance and sale
of the additional bonds or other additional obligations-
D. Subordinate Obligations Permitted. Nothing
herein contained, except as herein otherwise specifically
stated, shall be construed so as to prevent the City
from issuing bonds or other obligations payable from the
revenues of the waterworks system and having a lien
thereon subordinate, inferior and junior to the lien of
the.bonds herein authorized.
E. Superior Obligations Prohibited. Nothing
herein contained shall be construed so as to permit the
City to issue bonds or other obligations payable from
the revenues of the waterworks system and having a lien
thereon prior and superior to the bonds herein
CO
refunded without the consent of the holder or.holders
of the unrefunded portion of such obligations, unless:
(1) The refunding bonds or other refunding
obligations do not increase any aggregate annual
principal and interest requirements evidenced by
such refunding obligations and by the outstanding
obligations not refunded on and prior to the.last
maturity date of such unrefunded obligations, or
(2) The lien on revenues of the waterworks
system for the payment of the refunding obligations
is subordinate to each such lien for the payment
of any obligations not refunded.
Section 24. Protective Covenants. That the City
hereby covenants and agrees with each and every holder of
the bonds issued hereunder:
A. Use Charges, That while the bonds or any of
them remain outstanding and unpaid, the rates for all
services rendered by the waterworks system to inhabi-
tants of the City and to all consumers and users shall
be reasonable and just, taking into account and consid-
eration the cost and value of the facilities comprising
the waterworks system and the proper and necessary
allowances for the depreciation thereof and the amounts
necessary for the retirement of all bonds and other
securities or obligations payable from the revenues of
the waterworks system, the accruing interest thereon,
and any reserves therefor; and by an ordinance finally
adopted and approved not later than the 15t1b. day of
April 1965, in which rates and charges, as pro-
vided by said ordinance, shall be effective not later
than the lst day of October , 1965, there shall be
charged against all users and purchasers of service such
rates and amounts as shall be sufficient to produce reve-
nues or earnings annually to pay the annual operation
and maintenance expenses and an amount equal to one
hundred twenty-five per centum (125%) of the combined
maximum annual principal and interest requirements
or other refunding obligations payable from any reve-
nues of the waterworks system shall be issued on a parity
with the bonds herein authorized, unless:
(1) The lien on any revenues of the water-
works system of the outstanding obligations so
refunded is on a parity with the lien thereon of
the bonds herein authorized, or
(2) The refunding bonds or other refunding
obligations are issued in compliance with para-
graph A (including subparagraphs (1) and (2)
thereof) of section 22 hereof.
C. Refunding Part of an Issue. That the refund-
ing bonds or other refunding obligations so issued
shall enjoy complete equality of lien with the portion
of any bonds or other obligations of the same issue
which is not refunded, if any there be; and the holder
or holders of such refunding bonds or such other
refunding obligations shall be subrogated to all of
the rights and privileges enjoyed by the holder or
holders of the bonds or other obligations of the same
issue refunded thereby.
D. Limitations Upon Issuance of any Refunding
Obligations. That any refunding bonds or other refund-
ing obligations payable from any revenues of the water-
works system shall be issued with such details as the
Council may by ordinance provide, and subject to
the inclusion of any such rights and privileges desig-
nated in paragraph C of this section 23, but without
any impairment of any contractual obligation imposed
upon the City by any proceedings authorizing the
issuance of any unrefunded portion of such outstand-
ing obligations of any one or more issues (including
but not necessarily limited to the issues herein
authorized). If only a part of the outstanding bonds
and any other outstanding obligations of any issue or
issues payable from the revenues of the waterworks
system is refunded, then such obligations may not be
I. R
such holder, shall have the right at all reasonable
times to inspect all records, accounts and data relat-
ing thereto and to inspect the waterworks system and
all properties comprising the same,
D. Audits. That the City further agrees that it
will, within ninety days following the close of each
Fiscal Year, cause an audit to such books and accounts
to be made by an independent accountant for such Fiscal
Year, showing the receipts and disbursements for the
account of the waterworks system, and that such audit
will be available for inspection by any holder of any
of the bonds. All expenses incurred in the making of
the audits and reports required by this subsection D
of this section 24 hereof shall be regarded and paid
as an operation and maintenance expense. The City
agrees to furnish forthwith by first-class mail, postage
prepaid, a copy of each of such audits and reports:
(a) To the holder of any of the bonds at
his request, and
(b) Without request to the Purchaser (as herein
defined), and Boettcher and Company, Denver,
Colorado,
after each such audit and report has been prepared, and
that any such holder shall have the right to discuss
with the accountant or person making the audit and
report the contents thereof and ask for such additional
information as he may reasonably require,
E. Billing Procedure, That all bills for use,
service or facilities, or any combination thereof,
furnished or served by or through the waterworks system
shall be rendered to customers at regular intervals
and shall be delinquent thirty days after their date;
and in the event said bills are not paid within ten
days after they become delinquent, service shall be
discontinued and the rates and charges due shall be
collected in a lawful manner.
on bonds and any other obligations payable annually
from any revenues thereof (excluding the reserves there-
for), all of which revenues, including those from the
City, shall be subject to distribution to the payment
of operation and maintenance expenses of the waterworks
system and the payment of principal of and interest
on all obligations payable from the revenues of the
waterworks system, including reasonable reserves therefor,
provided that in determining the amount of revenues pur-
suant to paragraph A of this Section 24 there shall be
excluded any water main assessments, water tap fees
and plant investment fees which the City shall have
determined not to include in gross revenues as herein
provided; that should the City elect to use for munici-
pal purposes water facilities or in any other manner use
the waterworks system, or any part thereof, any such
use will be paid for from the City°s general fund or
other available revenues at the reasonable value of the
use so made; that all the income so derived from the
City shall be deemed to be income derived from the opera-
tion of the waterworks system, to be used and accounted
for in the same manner as any other income derived from
the operation of said waterworks system. The City cove-
nants and agrees that it will take all steps necessary
to enforce the immediate collection of fees and charges
delinquent for more than thirty days, together with
penalty charges, imposed hereunder for services or faci-
lities supplied by or furnished through the waterworks
system.
B. Records, That so long as any of the bonds
remain outstanding, proper books of record and account
will be kept by the City, separate and apart from
all other records and accounts, showing complete and
correct entries of all transactions relating to the
waterworks system. Such books shall include (but not
necessarily be limited to) monthly records showing a
detailed statement of the expenses of the system.
C. Right to Inspect. That any holder of any of
the bonds, or any duly authorized agent or agents of
nor shall it permit during said period (except as it
may legally be required to do so) any person, associa-
tion, firm, corporation or organization to sell water
service or facilities, to any consumer, public or
private, within the City. Such limitation shall not
apply to any person, association, firm, corporation or
organization presently selling water service or facili-
ties within the City or which, by annexation to or con-
solidation with the City, hereafter sells water service
or facilities within the City, provided, however, that
such person, association, firm, corporation or organi-
zation shall not be permitted to expand its services so
as to diminish the security for the bonds.
Section 25. Events of Default. That each of the
following events is hereby declared an "event of default,"
that is to saya
A. Nonpayment of Principal and Prior Redemption
Premium. Payment of the principal of any of the bonds,
or any prior redemption premium due in connection
therewith, or both principal and such premium, shall
not be made when the same shall become due and payable,
either at maturity or by proceedings for prior redemp-
tion, or otherwise.
B. Nonpayment of Interest. Payment of any install-
ment of interest shall not be made when the 'same becomes
due and payable or within thirty days thereafter.
C. Incapable to Perform. The City shall for any
reason be rendered incapable of fulfilling its obliga-
tions hereunder.
D. Default of Any Provision. The City shall make
default in the due and punctual performance of its cov-
enants or onditions, agreements and provisions con-
tained in the bonds or in this ordinance on its part to
be performed, and if such default shall continue for
sixty days after written notice specifying such default
and requiring the same to be remedied shall have been
given to the City by the holders of twenty-five per cen-
tum (25%) in principal amount of the bonds then outstanding.
F. Insurance. That the City in its operation of
the waterworks system will carry fire and extended cov-
erage insurance, workmen's compensation insurance,
public liability insurance, and other types of insur-
ance in such amounts and to such extent as is normally
carried by private corporations operating public facil-
ities of the same type. The cost of such insurance
shall be considered one of the operating costs of the
waterworks system. In the event of property loss or
damage, insurance proceeds shall be used first for the
purpose of restoring or replacing the property lost or
damaged; any remainder shall be treated as net reve-
nues, and shall be subject to distribution in the manner
provided hereinabove in section 18 hereof, for net
revenues derived from the operation of the waterworks
system.
G. Alienating System. That the City will not
sell, lease, mortgage, pledge or otherwise encumber, or
in any manner dispose of, or otherwise alienate, the
waterworks system, or any part thereof, including any
and all extensions and additions that may be made
thereto, until all the bonds to be issued shall have
been paid in full, both principal and interest, or
unless provision has been made therefor, except that
the City may sell any portion of said property which
shall have been replaced by other property of at least
equal value, or which shall cease to be necessary for
the efficient operation of the waterworks system, but
in no manner nor to such extent as might prejudice the
security for the payment of the bonds, provided, how-
ever, that in the event of any sale the proceeds thereof
shall be distributed as net revenues.of the waterworks
system in accordance with the provisions of section 18
hereof,
H. Competing System. That as long as any of the
bonds are outstanding, the City shall not grant any
franchise or license to a competing waterworks system,
CO
Imo"
Section 27. Duties upon Defaults. That upon the
happening of any of the events of default as provided in sec-
tion 25 hereof, the City, in addition, will do and perform all
proper acts on behalf of and for the holders of bonds and cou-
pons to protect and preserve the security created for the pay-
ment of their bonds and coupons and to insure the payment of
the principal of and interest on the bonds promptly as the same
become due. All proceeds derived therefrom, so long as any of
the bonds herein authorized, either as to principal or inter-
est, are outstanding and unpaid, shall be paid into the Bond
Fund, In the event the City fails or refuses to proceed as in
this section provided, the holder or holders of not less than
twenty-five per centum (25%) in principal amount of the bonds
then outstanding, after demand in writing, may proceed to
protect and enforce the rights of the bondholders as herein -
above provided.
Section 28. Defeasance. That when all principal,
interest and prior redemption premiums, if any, in connection
with the bonds hereby authorized have been duly paid, the
pledge and lien and all obligations hereunder shall thereby be
discharged and the bonds shall no longer be deemed to be out-
standing within the meaning of this ordinance. There shall
be deemed to be such due payment when the Council has placed
in escrow and in trust with a commercial bank located within
the State of Colorado and exercising full trust powers, an
amount sufficient (including the known minimum yield from
Federal Securities in which such amount may be initially in-
vested) to meet all requirements of principal, interest and
prior redemption premium, if any, as the same become due at
their final maturities or upon designated prior redemption
dates. The Federal Securities so held shall become due prior
to the respective times on which the proceeds thereof shall
be needed, in accordance with a schedule established and agreed
upon between the Council and such bank at the time of the cre-
ation of the escrow, or the Federal Securities shall be subject
to redemption at the option of the holders thereof to assure
such availability as so needed to meet such schedule. Federal
Securities within the meaning of this section shall include
only direct obligations of, or obligations the principal and
Section 26. Remedies for Defaults. That upon the
happening and continuance of any of the events of default
as provided in section 25 hereof, then and in every case
the holder or holders of not less than twenty-five per cen-
tum (25!) in principal amount of the bonds then outstanding,
including but not limited to a trustee or trustees therefor,
may proceed against the City, the Council, and the City`s
agents, officers and employees to protect and enforce the
rights of any holder of bonds or coupons under this ordi-
nance by mandamus or other suit, action or special proceed-
ings in equity or at law, in any court of competent juris-
diction, either for the appointment of a receiver or for the
specific performance of any covenant or agreement contained
herein or in an award of execution of any power herein
granted for the enforcement of any proper, legal or equit-
able remedy as such holder or holders may deem most effec-
tual to protect and enforce the rights aforesaid, or thereby
to enjoin any act or thing which maybe unlawful or in viola-
tion of any right of any bondholder, or to require the
Council to act as if it were the trustee of an expressed
trust, or any combination of such remedies. All such pro-
ceedings at law or in equity shall be instituted, had and
maintained for the equal benefit of all holders of the bonds
and coupons then outstanding. Any receiver appointed in any
proceedings to protect the rights of such holders hereunder,
the consent to any such appointment being hereby expressly
granted, may enter and take possession of the waterworks
system, operate and maintain the same, prescribe rates, fees
or charges and collect, receive and apply all revenues aris-
ing after the appointment of such receiver in the same manner
as the City itself might do. The failure of any holder so
to proceed shall not relieve the City or any of its officers,
agents or employees of any liability for failure to perform
any duty. Each right or privilege of any such holder (or
trustee thereof) is in addition and cumulative to any other
right or privilege, and the exercise of any right or privi-
lege by or on behalf of any holder shall not be deemed a
waiver of any other right or privilege thereof.
(4) A reduction of the principal amount of
bonds required for consent to such amendatory or
supplemental ordinance; or
(5) The establishment of priorities as between
bonds issued and outstanding under the provisions of
this ordinance; or
(6) The modification of or otherwise affecting
the rights of the holders of less than all of the
bonds then outstanding.
B. Notice of Amendment. That whenever the City shall
propose to amend or modify this ordinance under the provi-
sions of this section, it shall cause notice of the pro'
posed amendment to be published one time in a financial
newspaper or journal published in Denver, Colorado, and
to be mailed within thirty days of such publication to
the original Purchaser of the bonds. Such notice shall
briefly set forth the nature of the proposed amendment
and shall state that a copy of the proposed amendatory
ordinance is on file in the office of the City Clerk for
public inspection.
C. Time for Amendment. That whenever at any time
within one year from the date of the publication of said
notice there shall be filed in the office of the City Clerk
an instrument or instruments executed by the holders of at
least seventy-five per centum (75%) in aggregate amount of
the bonds then outstanding as in this section defined,
which instrument or instruments shall refer to the proposed
amendatory ordinance described in said notice and shall
specifically consent to and approve the adoption thereof,
thereupon, but not otherwise, the Council may adopt such
amendatory ordinance and such ordinance shall become
effective.
D. Binding Consent to Amendment. That if the holders
of at least seventy-five per centum (75%) in aggregate
principal amount of the bonds outstanding as in this sec-
tion defined, at the time of the adoption of such amenda-
tory ordinance, or the predecessors in title of such hold-
ers, shall have consented to and approved the adoption
thereof as herein provided, no holder of any bond whether
or not such holder shall have consented to or shall have
interest of which are unconditionally guaranteed by, the United
States of America.
Section 29. Delegated Powers. That the officers of
the City be, and they hereby are, authorized and directed to
take all action necessary or appropriate to effectuate the provi-
sions of the ordinance, including, without limiting the general-
ity of the foregoing:
A. Printing Bonds. The printing of the bonds, includ-
ing thereon a certified true copy of bond counsel's approv-
ing opinion; and
B. Final Certificates. The execution of such certif-
icates as may be reasonably required by the Purchaser re-
lating, inter alia, to the signing of the bonds, the tenure
and identity of the municipal officers, delivery of the
bonds, the receipt of the bond purchase price, and, if in
accordance with facts, the absence of litigation, pending
or threatened, affecting the validity thereof.
Section 30. Amendment of Ordinance.
A. Limitations upon Amendments. That this ordinance
may be amended or supplemented by ordinances adopted by the
Council in accordance with the laws of the State, without
receipt by the City of any additional consideration, but
with the written consent of the holders of three -fourths of
the bonds authorized by this ordinance and outstanding at
the time of the adoption of such amendment or supplemental
ordinance (not including in any case any bonds which may
then be held or owned for the account of the City, but in-
cluding such refunding bonds as may be issued for the pur-
pose of refunding any of the bonds herein authorized if
such refunding bonds are not owned by the City); provided,
however, that no such ordinance shall have the effect of
permitting:
(1) An extension of the maturity of any bond
authorized by this ordinance; or
(2) A reduction in the principal amount of any
bond, the rate of interest thereon, or the redemption
premium payable thereon; or
(3) The creation of a lien upon or a pledge of
revenues ranking prior to the lien or pledge created
by this ordinance; or
Section 31. Severability. That if any section,
paragraph, clause or provision of this ordinance shall for any
reason be held to be invalid or unenforceable, the invalidity
or unenforceability of such section, paragraph, clause or pro-
vision shall not affect any of -the remaining provisions of
this ordinance.
Section 32. Repealer. That all ordinances, resolu-
tions, by-laws and regulations of the City, insconflict with
this ordinance, are hereby repealed to the extent only of such
inconsistency. This repealer shall not be construed to revive
any ordinance, resolution, by-law, or regulation, or part
thereof, heretofore repealed.
Section 33. Manner of Publication and Effective Dat
That this ordinance shall be published once in full at least
ten days before its final passage in The Fort Collins
Coloradoan , a newspaper of general circulation published
in the City, which publication shall contain a notice giving
the date when said proposed ordinance will be presented for
final passage. Within five days after said final passage, the
ordinance as passed shall be published once in full, as pro-
vided above, whereupon, it shall take effect on the tenth day
following its passage.
Section 34. Disposition of Ordinance. That a true
copy of this ordinance, immediately on its final adoption,
shall be numbered and recorded in the book marked "Ordinance
Record," and adoption and publication shall be authenticated
by the signatures of the Mayor and City Clerk, and by the
certificate of the publisher, respectively.
INTRODUCED, READ IN FULL, PASSED ON FIRST READING
AND ORDERED PUBLISHED this llth day of March , 1965.
(SEAL)
Attest:
c-Ity clerk
Mayor
revoked any consent as in this section provided, shall
have any right or interest to object to the adoption of
such amendatory ordinance or to object to any of the
terms or provisions therein contained or to the operation
thereof or to enjoin or restrain the City from taking any
action pursuant to the provisions thereof.
E. Time Consent Binding. That any consent given by
the holder of a bond pursuant to the provisions of this
section shall be irrevocable for a period of six months
from the date of the publication of the notice above pro-
vided for and shall be conclusive and binding upon all
future holders of the same bond during such period. At
any time after six months from the date of the publica-
tion of such notice, such consent may be revoked by the
holder who gave consent or by a successor in title by
filing notice of such revocation with the City Clerk, but
such revocation shall not be effective if the holders of
seventy-five per centum (75%) in aggregate principal
amount of the bonds outstanding as in this section defined,
have, prior to the attempted revocation, consented to and
approved the amendatory ordinance referred to in such
revocation.
F. Proof of Instruments. That the fact and date
of the execution of any instrument under the provisions
of this section may be proved by the certificate of any
officer in any jurisdiction who by the laws thereof is
authorized to take acknowledgment of deeds within such
jurisdiction, that the person signing such instrument
acknowledged before him the execution thereof, or may
be proved by an affidavit of a witness to such execution
sworn to before such officer.
G. Proof of Bonds. That the amount and numbers of
the bonds held by any person executing such instrument
and the date of his holding the same may be proved by a
certificate executed by a responsible bank or trust com-
pany showing that on the date therein mentioned such per-
son had on deposit with such bank or trust company the
bonds described in such certificate.
FINALLY PASSED AND ADOPTED this 1st day of.
April , 1965.
(SEAL)
Attest,
City Clerk
Mayor
Published in The Fort Collins Coloradoan . Second publi-
cation (i.e., publication after final passage) April
6 , 196 5.
1, Miles F. House , City Clerk, City of
Fort Collins, County of Larimer, State of Colorado, do
hereby certify that the above and foregoing ordinance is a
true and correct copy of the ordinance introduced and
passed on first reading at the regular meeting held on the
llth day of March , 1965, read in full, published in
full in The Fort Collins Coloradoan on the 16th day of
March , 1965,, and after holding a public hearing
thereon, read a second time by title, finally passed and
adopted on the 1st day of April , 1965,; and pub-
lished in full a second time in TaeFort Collins Coloradoan
on the 6th day of April , 1965.
(SEAL)
Attest:
City Clerk
NOTICE IS HEREBY GIVEN that at the regular meeting
of the City Council, to be held on Thursday , the -ist_ day
of April , 1965, at the hour of 1:30 o'clock
at the Council Chambers in the City Hall, in Fort Collins,
Colorado, the City Council will hold a public hearing on the
aforesaid proposed ordinance and thereafter will consider it
for final passage and adoption.
(SEAL)
Attest:
City Clerk
Mayor
Published in The Fort Collins Coloradoan First
publication March 16 , 196r .
',y
189
The following report was presented and read at length:
Robert F. Boos
City Manager
Re: Salvage Operation at
City Dump.
The following comments and observations are offered regarding the continuation
of a salvage operation at the City sanitary land fill.
The City entered into an agreement with Mr. Marion H. Jones, on June 5, 1964, to
salvage paper and paper products at the City Dump. The agreement is based on a proposal
submitted by Mr. Jones, and provides, among other things, that a) salvage be limited to
paper and paper products, b) the contract shall run for a period of one year, c) Mr. Jones
pay to the City $50.00 per month for the privilege of conducting the salvage, and d) the
entire operation be done under the supervision and control of the City Engineer. The con-
tract further poruices that the City Engineer may establish any necessary rules and regu-
lations governing the salvage operation and that the contractor shall abide by these rules
and regulations or have his contract cancelled. No such rules and regulations have ever
been established, but I have no doubt that Mr. Jones would abide by any and all reasonable
restrictions which we might place on his operation. The cooperation of Mr. Jones with our
department has been excellent.
It would, however, be a very difficult proposition to establish a set of rules and
regulations regarding the salvage operation which would improve the efficiency of the land
fill operation, that would not, at the same time, decrease the efficiency of Mr. Jonest
operation. A sanitary land fill operation and a salvage operation are totally non -compati-
ble activities. In the former instance it is the objective to bury the mixed refuse as
quickly as possible, while in the latter instance burial and compaction must be held up in
order to permit necessary sorting and separating of a salvageable and non-salageable mater-
ials.
Almost egery factor of an efficient land, fill operation represents a detriment to
an efficient salvage operation. An of course the converse is equally true. The following
will serve to illustrate my point.
Refuse collectors in our City, quite obviously, do not complete, their days oper-
early to mid -afternoon. This results in having the extreme high influx of dump-
ation until
ing occur at the dump site during the last one too hours of operation. During this period
and
he
the equipment operator must be alert inuorderrtowkeeputhetaccumulationdconfined toas
dumping area clear for incoming trucks,
small an area as possible; and in order to complete the covering by closing time. The
salvage operator, on the other hand, must also dependmus,donthis period
of his pe,haveltimextooprop-
ob-
.
tain most of the material he is salvaging
erly inspect, sepatEt e and retrieve the material desired from the loads dumped. He must have
ity to the a truck located in close proximAnd he cannotdumping
gsalvagedet material
effectively separate thematerialif ithasbee
out quickly and m nveniently.
even partially compacted.
Mr. Jones, in accordance with the agreement, compacts the salvaged paper on the
site. This part of his operation is located at the entrance to the land fill and creates
an unsightly appearance. This is not due to Mr. Jones' method of operation. It is rather
an unavoidable by-product of sucand nscattering about activity. It ithe immediates a near sareality to keep
and paper products from blowing
when the wind is blowing.
In summary, I would submit that the $50.00 per month received on behalf of this
the decrease in efficiency which results in our operation.
operation does not compensate for
With this thought in mind, I would suggest that Council give serious consideration to dis-
continuing the salvage operation. If a)unotlbenpermitted ould dintthe odumping ntinue oarea ur rafter 3esent roonge-
ment, I would suggest ththaMrthe°compaction part of his operation bemoved from the entrance
inthe afternoon, and b)
to the site, to an isolated section of the pro perty• Respectfully submitted,
/a/ C. Adam Fischer
Director of Public Works.
to Mr. Fischerys report and recommended the discontin-
Mr. Boos spoke in reference
nation of the salvage operation in the City dump. Mr. Jones was present and was called upon
in reference to the operation for the past nine months and said he felt that he had been
able to cooperate with the operators there at the dump. He was advised tbetween the City and himself -in
the recommenda-
tion consisted of detriments of the agreement in reference to
in the City dump.
salvage of papers Motion was made by Councilwoman Quinn, seconded by
ement with Mr. Marion Jones for salvage of paper in the City
Councilman Guyer, that the agre
1965. Roll was called resulting as follows: Ayes: Council -
dump terminate as of June 26,
Councilwoman Quinn. Absent: Councilman Johnson, excused.
McMillan, Guyer and motion adopted.
The President declared the
en Colwell,
Nayes: None• presented and read at length:
owing communication was
The foll
FAITH EVANGELICAL FREE CHURCH
March 29, 1965
90
Ape -1-_la 1965
City Council of Fort Collins �I
Dear Sirs: I
n
We the members of the Faith Evangelical Free Church wish to make the following request eonc'rn-
ing parking of automobiles in our area.
That the area, Olive Street East from Whedbee to Smith on the South side of said Olive
Street be designated as Diagonal Parking.
This would allow more cars to be parked during our Services.
Your thoughtful consideration in this matte r and prompt action will be greatly appreciated,.
Sincerely yours,
/a/ Ernest V. Streed, Pastor
509 East Olive
Fort Collins, Colorado
P
The Assistant Mayor requested that the petition for diagonal parking of the Bethel
Baptist Church be presented and both requests be considered at this time
The folladng petition was presented and read at length:
March 29, 1965
Fort Collins, Colorado
We, the undersigned MEMBERS, TRUSTEES and PASTOR OF THE BETHEL BAPTIST CHURCH, 201 Whedbee
Street, Fort Collins, Cilorado, are asking permission of the City Council and the Fort
Collins, Colorado Police Department to park diagonally in the 400 Block of "ast Oak Street,
Fort Collins, Colorado or the South side. We are asking this courtesy due to the fact there
are no cross -walks on either Whedbee or Oak Street which could prove hazardous, with theraid
travel of traffic turning from Riverside and driving South on Whedbee. This would be fora'
bout 3 hours on Sunday Mornings, Sunday Evenings and Wednesday Evenings and of course on
Special functions.
This petition was signed by 61 members of the Church. After considerable dis-
cussion, motion was made by Councilwoman Quinn, seconded by Councilman Guyer, that both
petitions be referred to the City Manager for investigation and report on same to the City
Council. Roll was called resulting as follows: Ayes: Councilmen Colwell, McMillan,
Guyer and Councilwoman Quinn. Absent: Councilman Johnson, excused. Nayes: None. The
President declared the motion adopted. J
The following petition for annexation was presented and read at length:
PETITION AND APPLICATION FOR ANNEXATION
TO THE CITY COUNCIL OF THE CITY OF FORT COLLINS, Fort Collins, Colorado:
WHEREAS, the undersigned together with those persons who have signed the annexed
exhibits are the owners of more than fifty per cent (50%i} of the area and comprise the mai'or
ity of landowners residing in the area which is described as situate in the County of Lar
imer, State of Colorado, to -wit:
A tract of land situate in the North a of Section 21 and the SE! 4 of Section 16'Colo-
Township 7 North, Range 69 West of the Sixth P.M., County of Larimer, State of d
rado, which considering the North line of Section 21 as bearings. 89°41' E. an
with all bearings Eontained herein relative thereto is contained within the
boundary lines which begin at a point which bears S. 89-41' E. 70260 feet and
again S. 00-19' W. 30.00 feet from the North ! corner of said Section 21 and run
thence S. 89041' E. 446.26 feet; thence N. 00406'30" W. 632.65 feet, thencenr•
89041' W. 82.49 feet; thence N. 00006' 0" W. 716.20 feet to a point on the South
line of the Alvin L. Miller First Foothills Annexation to the City of Fort Colthe3
Colorado; thence aloe said South line S. 89°41' E. 250.00 feet, thence along
Westerly line of the �Iirst and Second Elliott -Miller Annexations to the City feet;'
Fort Collins, Colorado, S. 00020' E. 886.26 feet; thence S. 00-20' E. 462.65 01'''4i<
thence N. 89°41' W. 119.07 feet; thence S. 00°19!' W, 450.00 feet; thence N. 8y 4
500.00 feet; thence N. 00°19' E. 450.00 feet; to the point of beginning, contain
ing 11.7899 acres more or less;
WHEREAS, said lands are contiguous with the City limits of the City of Fort
ollins, Colorado, and more than one -sixth of the aggrega°.e external boundariesadoof, said
ands coincide wy Fort Collins, Colorith the existing boundaries of the City of Fo • and
WHEREAS, a plat Of said lands has been prepared in accordance with the provisions
f the Colorado Sta utes and the ordinances of the City of Fort Collins, four copies of
hich plat are herewith submitted;
NOW, THEREFORE, THE UNDERSIG_ ED, together with ea-h of the signers of the ataa�ePG
xhibits, respectfully petition that said plat comprising the above -described of the e
d and approved; that the territory embraced therein, to be known as West Prospect First
nnexation to the City of Fort Colins, Fort Collins, Colorado, be included within the tits
lu jurisdiction of the City of Fort Collins, Colorado; and further that said lands be in-
luded in the A Residence Zone except fort he following tracts to be included in the E
r
C
191
April 1. 1965
IIResidence tore under the_ zoning ordinances of the City of Fort Collins, Colorado: II
Begin at a point which bears S. 001201 E. 746.26 feet from the Northeasterly most
corner of the a bove-dewcribed tarct and run thence N. 89041a W. 170.44 feet;
thence S. 00006, 30" E. 372.67 feet; thence S. 89041r E. 171.90 feet; thence N.
00'201 W. 372.67 feet to the point of beginning, containing 1.4644 acres more or
less.
Dated at Fort Collins, Colorado, this 29th day of March, 1965.
(SEAL)
ATTEST:
s/ Hazel M. Shriver
ecretary
STATE OF COLORADO)
) as.
COUNTY OF LARIMER)
Respectfully submitted,
FOUDRE SCHOOL DISTRICT NO. R=1 IN THE COUNTY
OF LARIMER AND STATE OF COLORADO
/s/ By John Stewart
President
The undersigned , being first duly sworn upon oath, depose and say:
That they circulated the within petition and obtained each of the signagures on
the attached exhibits; that the within named persons signed the petition as their own acts
ar_d deed; that each of the persons whose signatures appear on the attached exhibits signed
said exhibits with the intention of said exhibits being attached to a petition for annexa-
tion to the City of Fort Collins, Colorado; that each of the persons sign :.ng the attached
exhibits intended to and did request annexation of the properties described after their nam
to the City of Fort Collins, Colorado, and consented to the attachment of said exhibits to
the dtove petition for annexation for the purposes set forth in said petition.
Elliott -Miller Cons. Co.
/s/ Alvin L. Miller, Pres.
Ottie B. Fuqua
Martha H. Fuqua
Subscribed and sworn to before me this 29th day of March, 1965, by
Alvin L. Miller, Ottie B. Fuqua and Martha H. Fuqua �a/ V. A. Porter g6
My commission expires: March 15, Notary Public
Quinn, seconded by Councilman Guyer, that this
Motion was made by Councilwoman
petition be referred to the Planning and Zoning Board for their recommendation. Roll was
called resulting as follows:- Ayes: Councilmen Colwell, McMillan, Guyer and Councilwoman
nson, excused. Nayes: None. The President declared the
Quinn. Absent: Councilman Job
ion adopted.
The following petition was presented and read.at length:
PETITION AND APPLICATION
FOR ANNEXATION
STATE OF COLORADO
as.
OUNTY OF LARIMER
COUNCIL OF THE CITY OF FORT COLLINS
COLLINS, COLORADO
UER TLEMEN
WHEREAS, We the undersigned are the owners of more than scr be the area tein m-
prise the majority o£ land owne s residing in the arda which is described as situate in
the County of Larimer, State of Colorado, to -wit:
Beginning at the NE corner o0eSection 10, Townsip 7 North, Range 69 West of the
thence S. 00301 E. 1000 feet to t he point of
6th P.M., thence W• 189p55,15 W. 34G.00 feet, thence S. 00301 E. 327.63 feet,
beginning, thence S• 0 feet to the SE corner of the NW'- of the NE'' of Section
thence N, ip°75NorthE•Range 69 West of the 6th P.M., thence N. 0°30 E. 327.63
feet to the point of beginning;
containing 2a acres, more or less,
AND WHEREAS , said lands are contiguous whe aggregatehe lexternal ty sboundaries tofosaid
rt
Colorado, and more than one-
riesoofttheaCitygof Fort Collins, and
Collins, with the existing
lands coincide
now appurtenant to said lands nor have any been
WHEREAS, No water rights are
appurtenant to said lands since the same have been owned by the undersigned.
NOW, THEREFORE, it ie respectfully petitioned that said plat comprising the above
and app that the territory embraced therein, to be known
iescribed lands, be acceptedta City of Fort Collins, Colorado, be included within the limit
as the Pierce of Fort Collins, Colorado, and further that said lands be
and jurisdiction of the City
ncluded in the D zone under the zoning Ordinance of the City of Fort Collins.
192
ted at Fort Collins, Colorado,
/s/ Otto J. Pierce
Mary C. Pierce
STATE OF COLORADO)
) as.
COUNTY OF LARIMER)
April 1, 1965
this 29 day of January, 1965, A. D.
The foregoing instrument was acknowledged before me this 29 day of Jan. A. D. 1965,
By Otto J. Pierce & Mary C. Pierce
for the purposes therein set forth.
commission expires September 10, 1966.
s/ t'rthur March
Notary Public
Motion was made by Councilman Guyer, seconded by Councilwoman Quinn, that this
Petition be referred to the Planning and Zoning Board for their recommendation. Roll was
called resulting as follows: Ayes: Councilmen Colwell, McMillan, Guyer and Councilwoman
Quinn. Absent: Councilman Johnson, excused. Nayes: None. The President declared the
tion adopted.
The following petition was presented and read at length:
PETITION AND APPLICATION
FOR ANNEXATION
TATE OF COLORADO)
as.
OUNTY OF LARIMER)
ITY COUNCIL OF THE CITY OF FORT COLLINS
ORT COLLINS, COLORADO
LEMEN:
WHEREAS, We the undersigned are the owners of more than 50% of the area and com-
rise the majority of land owners residing in the area which is described as situate in the
ounty of Lorimer, State of Colorado, to -wit:
tract of land situate in the NE4 of Section 16, Township 7 North, Range 69 West of the
ixth P.M., County of Larimer, State of Colorado, which considering the East line of said
° E as bearing S. 0032, E. and with all bearings contained herein relative t hereto is con
ained within the boundary lines which begin at a point on the East line of said NE4 which
ears S. 00°321 E. 1584.00 feet from the NE corner of said NE4 and runs thence S. 00032, E.
056.0 feet to the East 4 corner of said Section 16, said 1 corner being the NE corner of
he Miller Brothers Tenth Foothills Annexation, thence N. 9°43'30" W. 330,00 feet along
he North line of the Miller Brothers Tenth Foothills Annexation to t he City of Fort Collins
olor.ado; thence N. 00032f W. 1051.35 feet; thence N. 890281 E. 330.00 feet tot he point of
eginning.
ontaining 7.982 acres, more or less.
AND WHEREAS, said lands are contiguous with the City Limits of the City of Fort
of ins, Colorado, and more than one -sixth of the aggregate external boundaries of said
ands coincide with the existing boundaries of the City of Fort Collins, and
WHEREAS, a plat of said lands has been prepared in accordance with the provisions
f the Colorado State Statutes and the Oreinances of the City of Fort Collins, 6 copies of
hich said plat is herewith submitted,
i
NOW, THEREFORE, it is respectfully petitioned that said plat comprising the abover
escribed lands, be accepted and approved, that the territory embraced therein, to be known
s the West Elizabeth -Foothills Annexation to the City of Fort Collins, Colorado, be includ
aidlthin landsthe limits be includedniinJthesdDction of theCommercial City of Fort Collins, Colorado, and further that
istrict under t he zoning ordinance of the City
f Fort Collins, EXCEPT. the following described portio
o-wit: n of the above described total tract,
The North 100 feet of the a bove described tract, containing o.758 acres more or
less, is to be zoned "A" Residential,
lso, except the following described portion of the above described total tract, to -wit:
The South 150 feet of the North 250 feet of the above described total tract,
containing 1.136 acree more or less, is to be zoned "C10 Residential
ated at Fort Collins, Colorado, this 29 day of March, 1965, A. D.
espectfully submitted:
s/ Harold W. Conner
Russ®11 E. Conner
TATE OF COLORADO)
) as.
OUNTY OF LARIMER)
a
193
The foregoing instrument was acknowledged before me this 29 day of March, 1965.
By Harold W. Conner - Russell E. Conner
forthe purposes therein set forth.
My commission expires Feb. 17, 1968.
/a/ Howard R. Swartz
Notary Public
Motion was made by Councilwoman Quinn, seconded by Councilman Guyer, that this
be referred to the Planning and Zoning Board for t heir recommendation. Roll was called
resulting as follows: Ayes: Councilmen Colwell, McMillan, Guyer and Councilwoman Quinn.
Absent: Councilman Johnson, excused. Nayes; None. The President declared t he motion
adopted.
The following petition was presented and read at length;
P E T I T I O N
To: City Council
City of Fort Collins, Colorado
COME NOW the undersigned petitioners, the owners of Lots 1, 2, 3, 4, 5, and Parcel
A in Block 1, shown in attached drawing, Sitzman's Addition' to the City of Fort Collins,
Colorado,
And petition that the following described alley located in the aforementioned
addition to the City of Fort Collins, Larimer County, Colorado, to -wit:
Beginning at the northwest corner of Lot 3, Block 1, Sitzman's Addition to the
City of Fort Collins; thence North 16 feet to the southwest corner of Lot 1, ins aid Block;
thence East 141.8 feet, more or less, along the south lines of Lots 1 and 2, to the south-
east corner of Lot 2, in said Block; thence South 16 feet to the northeast corner of Lot
5 in said Block; thencd West along the north lines of Lots 5, 4 and 3, in said Block, 141.8
feet more or less, to point of beginning,
vacated,
And as grounds for this petition state that land is not being used as an alley;
that there is no need for an alley at this location; that said alley is not a through alley
but dead ends on the east; and that the undersigned desire the vacation of this alley.
WHEREFORE, the undersigned pray that t he above described alley be vacated.
Dated at Fort Collins, Colorado, this 25t1a day of February, 1965.
Lespag Inv. Co.
Attest; M. D. Farver /s/ Pat Griffin
Secretary President
llwlght King
Arlene King
Pauling Bird Gregory
Stefanie A. Hutchinson
Paul A. Hutchinsoh
OF COLORADO
se.
OUNTY OF LARIMER
Jess M. Johnson
Audry N. Johnson
R. B. Eastman
K. P. Eastman
foregoing instrument was acknowledged before me this 25th day of February, 1965, by
My commission expires June 12, 1968.
Witness my hand abd official seal.
/s/ Billie Hair
Notary Public
Motion was made by Councilwoman Quinn, seconded by Councilman Guyer, that this
referred to the City Manager for investigation and report. Roll was called resulting
follows: Ayes: Conncilmen Colwell, McMillan, Guyer and Councilwoman Quinn. Absent:
ilman Johnson, excused. Nayes: None. The President declared the motion adopted.
The City Attorney requested that the matter of the lease and agreement on the
randview Cemetery land be tabled to April 8, 1965. Motion was made by Councilwoman Quinn,
econded by Councilman Colwell, that the request be accepted and the matter be tabled for of
eek. Roll was called resulting as follows; Ayes: Councilmen Colwell, McMillan, Guyer
nd Councilwoman Quinn. Absent: Councilman Johnson, excused. Nayes: Non e. The Presidet
eclared the motion adopted.
194
April 12 1965
The following report was presented and read at length:
Robert F. Boos
City Manager
April 1, 1965
Re: Buckingham Place
Sanitary Sewer District
Submitted herewith are maps, plans, specifications and estimate of cost for
constructing sanitary sewers in the Buckingham Place Sanitary Sewer District.
This information is respectfully submitted as ordered by the City Council in a
solution passed during their regular session on March 4, 1965.
C. Adam Fischer
Director of Public Works
ESTIMATE OF COST
BUCKINGHAM PLACE
SANITARY SEWER DISTRICT
Buckingham Lines 1, 2, 3, 4, 5 and 6
1, Clay Pipet,
Standard Strength, 8"
2,616 lin. ft. @ 5.40 = $ 14,126.40
2- Manhole, Type I
12 ea. @ 300.00 _
— 3,600.00
3. Excavating and Backfi.11ing
Trench in Unstable Soil
50 cu. yds. @ $ 3.00 =
150.00
Total Construction Cost _
Total Area of District
597,560 sq, ft.
Estimated Construction Cost per sq. foot = $ 0.03
In addition to the construction cost the members of the district are required to
)ay administrative and engineering expense created by the district. These are extimated in
;he form of a percentage of the total construction cost and are itemized as follows:
Engineering =
Legal and Publication = 7%
Cost of Collection and = 5%
making assessment
Interest during construction = 7%
(estimated as 6% per annum 2%
over a construction period
of 4 mo ntlhs )
Total 21%
21% of Construction Cost (21% x 17,876.40)
Estimated Total district expense to
property owners
Estimated Total district expense to
property owners per square foot
3,754.04
21,630.44
$ 0.036
The average size lot in the Buckingham Place Addition is 6,350 square feet. on
;his size lot the estimated total district expense would, therefore, amount to:
6,350 x 0.036
$ 228.60
lee for connectin a ngvtooped lot tthe system. Onould e Sttandardead sizeltional charge of the plant investment
ase in this district without exception, this would amount residential tap, which would be the
$175.00
nd the total estimated assessment for an average size devellped lot$403.60
or
tion
ess
20) years,Fwithointerestlbeing apaid onsthe unpaidmay
balan,ata collected over o period up to twenty
er cent per annum. In accordance with the at a rate not ex six (b)
...... the pe rind of payment, and the rate of interest °£ Sectioh 15-74, Code of Ordinances,
p ' shall b e y 1,
nd set forth in the assessing ordinance". determined b the Counci
In ent that
ncil
uld
nterest rate ofe6%vthe averageuannualopaymentabnithea payment period of 20 years and an
9 fO110W9:
two amples considered above would
to
Undeveloped Lot having 6,350 sq. ft.
District Assessment (6350 x 0.036)
Total Asswssment = 228.60
22 0
Amount due if paid within 30 days after
final publication of assessing ordinance
(5% discount - $ 217.17
195
Average annual payment if paid over 20 years at 6% 18..63
Payment first year (Max.) 25.15
Developed Lot having 6,350 square feet
District Assessment 6,350 x 0.036) 228.60
Plant Investment Fee 175.00
Total Assessment 0 403.60
Amount due if paid within 30 days after final
publication of assessing ordinance (5% discount) 392.17
Average annual payment if paid over 20 years at 6% 32.89
Payment first year (maximum) 1 44.40
In the case of the undeveloped lot, the plant investment fee of 0175.00 would
Ito be paid in full at the time that the lot is developed and connected to the system.
In addition to the costs described the property owner would be responsible for
the actual cost of constructing the service line and connecting it tothe system.
In order to serve the Buckingham District it will be necessary to construct an
outfall line and pumping station. Maps, plans, specifications and the following estimate
Of cost for this outfall line are herewith included for Council's information.
Line F (Outfall)
1. Clay Pipe,
Standard Strength, 8" @ $ 5.40 = _ 4,870.80
2.
Clay Pipe,
Extra Strength, 8"
@ $ 5.40
=
7,992.00
3.
Manhole, Type I
9 ea,
0000
@ 3.
=
2,700.00
4.
18" Ductile Iron Pipe
20.00
=
200 lin. ft.
@
$
4,000.00
5.
Prefabricated Sewage Lift
Station
Lump
Sum
= $
15,000.00
6.
Excavating and Backfilling
Trench in
Unstable Soil 50 cu. yds.
@ 3.00
= $
150.00
7.
Class C Concrete
3 cu. yds.
@ 14•00
= 6 42.00
Total
0
34,754•80
8. = 15% of total
Engineering Administration Costs
Total Estimated Cost of
Line F. (Outfall)
0 39,968.02
/sl C. Adam Fischer
Director of Public Works.
Motion was made by Councilman Guyer, seconded by Councilwoman Quinn, that this
report be accepted and referred to the City Attorney to prepare the necessary resolution.
Roll was called resulting as follows: Ayes Councilmen Colwell, McMillan, Guyer and
Coucilwoman Quinn. Absent: Councilman Johnson, excused. Nayes: None. The' Pre s i de nt
declared the motion adopted.
The following resolution was presented and read at length:
RESOLUTION
OF THE COUNCIL OF THE CITY OF FORT COLLINS ADOPTING THE REPORT OF THE CITY ENGINEER ON THE
ESTIMATED COSTS AND ASSESSMENTS FOR CONSOLIDATED SANITARY SEWER IMPROVEMENT DISTRICT NO. 53
AND APPROVING THR DETAILS ANDSPECIFICATIONS FOR THE SAME, DETERMINING THE NUMBER OF INSTALL
MENTS AND THE TIME IN WHICH COSTS SHALL BE PAYABLE, THE RATE OF INTEREST TO BE CHARGED ON
UNPAID INSTALLMENTS AND THE PROPERTY TO BE ASSESSED FOR THE SAME, AND AUTHORIZING THE PUB-
LICATION AND MAILING OF NOTICE TO THE PROPERTY OWNERS OF ALL REAL ESTATE IN SAID DISTRICT
TO BE ASSESSED AND TO ALL PERSONS INTERESTED GENERALLY° AND FIXING THE DATE OF HEARING WHEN
THE CITY COUNCIL WILL CONSIDER THE ORDERING BY ORDINANCE OF THE PROPOSED IMPROVEMENTS
WHEREAS, heretofore on March 4, 1965, the City Council by resolution directed the
lit Engineer to make a survey of the proposed Consolidated Sanitary Sewer Improvement Dis-
irlet No. 53 for the purpose of preparing a map, plans and specifications, and estimate of t
:oats of said improvements in said District, and
196
April 1, 1965
WHEREAS, the City Engineer has made his report of t he estimated costs and asses-
sments for said District and has presented the details and specifications for the same. N
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that
the details and specifications as presented by the City Engineer for said Consolidated
Sanitary Sewer Improvement District No. 53 be and the same hereby are accepted and adopted;
and
That the assessments for the cost of installing the improvements in said District
wi.11tb e made upon all of the lots and lands in Buckingham Place Addition to the City of
Fort `Collins, Colorado, in proportion as the area of each piece of real estate in the Dis-
trict is to the area of all the real estate in the District, exclusive of streets and alley
in the District; and
That said assessments shall be payable in twenty(20) equal annual installments wi
interest on the unpaid installments at the rate of six per cent (6%) per annum; and
That the estimated costs and assessments, map of the District, schedule showing
the approximate amount to be assessed per square foot upon the several properties in the
District, all as presented by the City Engineer, be and the same hereby are accepted and
adopted; and
That Thursday, the 13th day of May, A. D. 1965, at the hour of 1:30 o'clock in
the afternoon in the Council Chambers in the City Hall, City of Fort Collins, is the date
on which the Council of the City of Fort Collins will consider t he ordering by ordinance
of the proposed improvements and hear all complaints and objections that may be filed in
writing concerning the proposed improvements by the owners of any real estate to be asses-
sed or any persons interested; and
Ahat the City Clerk be and he hereby is directed to give notice by publication
and mailing to the owners of property to be assessed and all interested persons generally,
all as set forth in 6ection 15-57 of the Code of Ordinances of the City of Fort' Collins,
Colorado, 1958, as amended.
Passed and adopted at a regular meting of the City Council held this first day
April', A. D. 1965.
Is/ Harvey G. Johnson
Mayor
ATTEST:
s/ Miles F. House
Motion was made by Councilwoman Quinn, seconded by Councilman Guyer, that this
resolution be adopted. Roll was called resulting as follows: Ayes: Councilmen Colwell,
McMillan, Guyer and Councilwoman Quinn. Absent. Councilman Johnson, excused. Nayes:
None. the President declared the motion adopted.
Mr. J. T. Banner, the 6onsulting Engineer on the water and sewer project, was
present and presented plans and specifications on both the water and sewer for the Council
to look into. He commented to some extent on these plans and said that they would like to
call for bids as early as possible.
The following communication was presented and read at length:
To: Mr. Boos and Council Members
March 30, 1965
Water Board
The Water Board recommends that J. T. Banner & Associated be authorized to proceed inobtain
ing bids for the various sizes and types of Pipe to be installed in the 1965 Water Improve-
ment program.
s/ John Bartel
Secretary
Motion was made by Councilman Guyer] seconded by Councilwoman Quinn, that the re-
commendation of the Water Board be accepted and the plans and specifications be taken under
advisement for one week. Roll was called resulting as follows: Ayes: Councilmen Colwell,
McMillan, Guyer and Councilwoman Quinn. Absent: Councilman Johnson, excused. Nayes:
None. The President declared the motion adopted.
The following; communication was presented and read at length:
March 29, 1965
To: Robert F. Boos, City Manager
From: Vealess F. Hudspeth, PE., Traffic Engineer Consultant, Cheyenne, Wyoming
Subject: Bid Analysis for Traffic Jignal Equipment
r
Attached herewith is bid analysis for traffic signal equipment. Bid opening at
1 p.m. March 29, 1965.
1_97
Both firms on which bids were received are considered reputable in the manufact
of signal equipment, and the equipment in the bid meets specifications.
It is recommended that the bid be awarded to the lowest bidder, The Econolite
Company, at a lump sum total of $13,992.65
Isl Vealess E. Hudspeth, P.E.
Traffic,Engineer Consultant
Cheyenne, Wyoming
Mr. Hudspeth was present and explained the four locations that the signals would
be installed. Motion was made by Councilwoman Quinn, seconded by Councilman Guyer, that
the low bid of Econolite Company be accepted. Roll was called resulting as follows: Ayes:
Councilmen Colwell, McMillan, Guyer and Councilworm n Quinn. Absent: Councilman Johnson,
excused. Nayes: None. The President declared the motion adopted.
The City Attorney said that he had an offer of 213 of a share of Arthur ➢itch
water at $80.00 per share and asked the Council if they wished to purchase this water.
Motion was made by Councilman Guyer, seconded by Councilwoman Quinn, that the City Attorney
be authorized to advise the owner that the City would buy 2/3 of a share of Arthur Ditch
Comnany water at $80.00 per share. Roll was cdled resulting as follows: Ayes: Councilmen
Colwell, McMillan, Guyer a nd Councilwoman Quinn. Absent: Councilman Johnson, excused.
Nayes: None. The President declared the motion adopted.
The City Manager brought up the matter of the request of the Schrader service
station and Texaco Company for the erection of a service station on South Shields Street,
The'approVal of this request was held up until the ordinance had been amended in reference
to locations of service stations and the Texaco Company wished to obtain a building permit
for the erection of said station.
Inasmuch as there was not a definite motion to approve the location previously,
ion was made by Councilman Colwell, seconded by Councilwoman Quinn, that the request
the Texaco Company and Wayne Schrader for a filing station located in the 1100 block of
South Shields Street be approved. Roll was called resulting as follows: Ayes: Councilmen
Colwell, McMillan, Guyer and Councilwoman Quinn. Absent: Councilman Johnson, excused.
Nayes: None. The President declared the motion adopted.
The City Manager reported that he had received word that Moody Investment Service
and Standard and Poor had rated the Water Bonds as AA and the Sewer Bonds as A, which for
the benefit of the sale of these bonds, was very welcome.
The audit reports of Roger and McCluskey for the general Fund and ,Harold Greagor
for the Light & Power Department fund, were presented tot he Council at this time. Motion
was made by Councilwoman Quinn, seconded by Councilman Colwell, that the audit be accepted.
Roll was called resulting as follows: Ayes: Councilmen Colwell, McMillan, Guyer and
Councilwoman Quinn. Absent: Councilman Johnson, excused. Nayes: None. The President
declared the motion adopted.
Motion was made by Councilwoman Quinn, seconded by Councilman Guyer, that the
Council adjourn. Roll was called resulting as follows: Ayes: Councilmen Colwell, MoMill
and Councilwoman Quinn. Absent: Councilman Johnson, excused. Nayes: None. The Preside
declared the motion adopted, and the Council adjourned
p
ATTEST:
0
City Cle k