HomeMy WebLinkAbout031 - 05/05/1992 - ISSUING GENERAL OBLIGATION WATER REFUNDING BONDS, SERIES 1992B CERTIFIED RECORD
OF
PROCEEDINGS OF THE COUNCIL OF
THE CITY OF FORT COLLINS, COLORADO
RELATING TO AN ORDINANCE
AUTHORIZING THE ISSUANCE OF ITS
GENERAL OBLIGATION WATER REFUNDING BONDS
SERIES 19925
DATED MAY 1. 1992
IN THE AGGREGATE PRINCIPAL AMOUNT OF $25 ,440, 000
STATE OF COLORADO )
COUNTY OF LARIMER
CITY OF FORT COLLINS )
The Council of the City of Fort Collins, Colorado, held
a regular meeting at Council Chambers, City Hall, 300 West LaPorte
Avenue, Fort Collins, Colorado, on Tuesday, the 18th day of
February, 1992, at the hour of 6:30 p.m.
The following persons were present:
Council Members: Susan E. Kirkpatrick, Mayor
Ann Azari, Mayor Pro Tem
Dave Edwards
Cathy Fromme
Gerry Horak
Loren R. Maxey
Bob Winokur
City Manager: Steven C. Burkett
Financial Officer: Alan J. Krcmarik
City Clerk: Wanda M. Krajicek
City Attorney: Stephen J. Roy
The following persons were absent:
None
Ordinance No. 31, 1992, was introduced and read by title,
copies of the full Ordinance having been available in the office
of the City Clerk at least forty-eight (48) hours prior to the time
the Ordinance was introduced for each Council Member and for
inspection and copying by the general public:
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ORDINANCE NO. 31, 1992
AN ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF FORT
COLLINS, COLORADO, GENERAL OBLIGATION WATER REFUNDING
BONDS, SERIES 1992B, DATED MARCH 1, 1992, IN THE
AGGREGATE PRINCIPAL AMOUNT OF $25,695,000, FOR THE
PURPOSE OF REFUNDING, PAYING AND DISCHARGING CERTAIN
OUTSTANDING GENERAL OBLIGATION WATER REFUNDING AND
IMPROVEMENT BONDS OF THE CITY; AND PROVIDING FOR THE LEVY
OF AD VALOREM TAXES AND PLEDGING THE NET REVENUES DERIVED
FROM THE OPERATION OF THE WATER SYSTEM TO PAY THE
PRINCIPAL OF AND INTEREST ON THE BONDS.
WHEREAS, the City of Fort Collins, Colorado (the "City") ,
has heretofore issued and sold its General Obligation Water
Refunding and Improvement Bonds, Series 1986, dated August 1, 1986,
in the original aggregate principal amount of $33,030, 000 (the
"Prior Bonds") ; and
WHEREAS, there is outstanding of the Prior Bonds the
aggregate principal amount of $28, 500, 000, maturing on December 1
in the following years in the following aggregate principal amounts
and bearing interest at the following per annum interest rates:
Per Annum
Years Principal Amounts Interest Rates
1992 $1, 080, 000 6.20%
1993 1, 160, 000 6.40
1994 1,220,000 6. 60
1995 1,315,000 6.75
1996 1,385,000 6.90
1997 1,485, 000 7 . 00
1998 1,875, 000 7. 10
1999 1,950, 000 7.20
2000 2, 045,000 7.30
2001 2, 140,000 7.35
2002 2, 250,000 7. 40
2003 1,865, 000 7.40
2004 2, 000, 000 7.40
2009 6,730, 000 7.50
and
WHEREAS, Prior Bonds maturing in the years 1992 through
1995 are not subject to optional redemption prior to their
respective maturity dates, and Prior Bonds maturing in the year
1996 and thereafter are subject to optional redemption prior to
their respective maturity dates, in whole or in part in inverse
order of maturity and by lot within a maturity, on December 1,
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1995, and on any interest payment date thereafter at a price equal
to the principal amount of each Prior Bond so redeemed plus accrued
interest thereon to the redemption date plus a premium expressed
as a percentage of the principal amount of each Prior Bond so
redeemed, depending on the redemption date, as follows:
Redemption Date Premium
December 1, 1995 and June 1, 1996 2.5%
December 1, 1996 and June 1, 1997 2 . 0
December 1, 1997 and June 1, 1998 1.5
December 1, 1998 and June 1, 1999 1.0
December 1, 1999 and June 1, 2000 0.5
December 1, 2000 and Thereafter None
and
WHEREAS, the City desires to refund, pay and discharge
the Prior Bonds maturing in the year 1996 and thereafter (the
"Refunded Bonds") ; and
WHEREAS, pursuant to Colorado Constitution art. XI, S6
and art. XX, S6, Art. V, Sections 19.2 and 19.4 of the Charter of
the City and part 1 of article 56 of title 11, Colorado Revised
Statutes, as amended (the "Act") , the Council (the "Council") of
the City has determined to issue City of Fort Collins, Colorado,
General Obligation Water Refunding Bonds, Series 1992B, dated
March 1, 1992, in the aggregate principal amount of $25, 695, 000
(the "Bonds") for the purpose of refunding, paying and discharging
the Refunded Bonds in order to reduce the net effective interest
rate; reduce the total interest payable; reduce the total principal
and interest payable or the principal and interest payable in any
particular year or years, or effect other economies; or any
combination of the foregoing; and
WHEREAS, a proposal for the purchase of the Bonds on
terms favorable to the City, together with the disclosures,
comparisons, and other information required by the Act, has been
received from Piper, Jaffray & Hopwood, Incorporated (the
"Purchaser") , and the Financial officer of the City has recommended
that said proposal be accepted by the Council; and 6
WHEREAS, there have been filed with the City Clerk the
forms of a Bond Purchase Agreement, dated March 3, 1992 (the "Bond
Purchase Agreement") , between the City and the Purchaser, an Escrow
Agreement, dated as of March 1, 1992 (the "Escrow Agreement") ,
between the City and (the "Escrow Bank") ,
a Letter of Representations, dated as of March 1, 1992 (the "Letter
of Representations") , from the City to The Depository Trust
Company, a limited purpose trust company organized under the laws
3
of the State of New York, as securities depository for the Bonds
(the "Securities Depository") , and the Preliminary Official
Statement, dated February _, 1992 (the "Preliminary Official
Statement") relating to the Bonds.
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS, COLORADO, AS FOLLOWS:
1. Award of Contract; Execution of Bond Purchase
Agreement: Approval of Preliminary Official Statement. The
contract for the purchase of the Bonds is hereby awarded to the
Purchaser at the price specified in the Bond Purchase Agreement and
upon the terms set forth in this ordinance (this "Ordinance") . The
City Manager is hereby authorized to execute the Bond Purchase
Agreement on behalf of the City. The Council hereby approves the
Preliminary Official Statement and ratifies the use and
distribution thereof by the Purchaser in marketing the Bonds.
2. Authorization and Description. For the purpose of
refunding, paying and discharging the Refunded Bonds, the City
shall issue the Bonds pursuant to Colorado Constitution art. XI,
S6 and art. XX, S6, Art. V, Sections 19.2 and 19.4 of the Charter
of the City and the Act.
The Bonds shall be issued in fully registered form and
shall initially be registered in the name of the Securities
Depository or a nominee therefor. Purchases by beneficial owners
of the Bonds (the "Beneficial Owners") shall be made in book-entry
form in the principal amount of $5, 000 or any integral multiple
thereof. The Beneficial Owners shall not receive certificates
evidencing their interests in the Bonds. No Bond shall be issued
in any denomination larger than the aggregate principal amount
maturing on the maturity date of such Bond, and no Bond shall be
made payable on more than one maturity date. The Bonds shall be
initially issued so that a single Bond shall evidence the
obligation of the City to pay all principal due on each of the
maturity dates set forth herein.
Pursuant to the recommendations of the Committee on
Uniform Security Identification Procedures, CUSIP numbers may be
printed on the Bonds.
The Bonds shall mature on December 1 in the following
years in the following aggregate principal amounts and shall bear
interest from March 1, 1992, or the interest payment dates to which
interest has been paid next preceding their respective dates,
whichever is later, to their respective maturity dates, except if
redeemed prior thereto, at the following per annum interest rates:
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Principal Per Annum
Years Amounts Interest Rates
1992 $ 135,000 $
1993 200,000
1994 210,000
1995 215, 000
1996 1, 610, 000
1997 1, 695, 000
1998 2,065,000
1999 2, 115,000
2000 2,190,000
2001 2, 260, 000
2002 2, 345, 000
2003 1,935, 000
2004 2, 050, 000
2005 2, 175, 000
2006 2, 320,000
2007 680,000
2008 720,000
2009 775,000
Said interest shall be payable on December 1, 1992, and
semiannually thereafter on the first day of June and the first day
of December of each year. If upon presentation at maturity the
principal of any Bond is not paid as provided herein, interest
shall continue thereon at the same interest rate until the
principal thereof is paid in full.
3 . Net Effective Interest Rate. The maximum net
effective interest rate for the Bonds shall be 15% per annum. The
actual net effective interest rate for the Bonds is % per
annum.
4 . Nature of Obligation. The Bonds shall be general
obligations of the City and shall be payable from general ad
valorem taxes and water revenues as provided herein.
5. Payment of Principal Interest and Premium. The
principal of, interest on, and any premium due in connection with
the redemption of the Bonds shall be payable in lawful money of the e
United States of America to the registered owners of the Bonds by
the Financial Officer of the City, as paying agent (the "Paying
Agent") . The principal and the final installment of interest shall
be payable to the registered owner of each Bond upon presentation
and surrender thereof at maturity or upon prior redemption by check
or draft mailed to the registered owner at the address appearing
on the registration books of the City maintained by the Financial
Officer of the City, as registrar (the "Registrar") , or by wire
transfer to such bank or other depository as the registered owner
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shall designate in writing to the Paying Agent. Except as
hereinbefore and hereinafter provided, the interest shall be
payable to the registered owner of each Bond determined as of the
close of business on the fifteenth day of the calendar month next
preceding the interest payment date (the "Regular Record Date") ,
irrespective of any transfer of ownership of the Bond subsequent
to the Regular Record Date and prior to such interest payment date,
by check or draft or wire transfer directed to such registered
owner as aforesaid. Any interest not paid when due and any
interest accruing after maturity shall be payable to the registered
owner of each Bond entitled to receive such interest determined as
of the close of business on a date fixed by the Paying Agent for
such purpose (the "Special Record Date") , irrespective of any
transfer of ownership of the Bond subsequent to the Special Record
Date and prior to the date fixed by the Paying Agent for the
payment of such interest, by check or draft or wire transfer
directed to such registered owner as aforesaid. Notice of the
Special Record Date and of the date fixed for the payment of such
interest shall be given by sending a copy thereof by certified or
registered first-class postage prepaid mail, at least fifteen (15)
days prior to the Special Record Date, to the registered owner of
each Bond upon which interest will be paid determined as of the
close of business on the day preceding such mailing at the address
appearing on the registration books of the City. Any premium shall
be payable to the registered owner of each Bond redeemed upon
presentation and surrender thereof upon prior redemption by check
or draft or wire transfer directed to such registered owner as
aforesaid. So long as the registered owner of any Bond is the
Securities Depository or a nominee therefor, the Securities
Depository shall disburse any payments received, through
participating underwriters, securities brokers or dealers, banks,
trust companies, closing corporations or other persons or entitles
for which the Securities Depository holds Bonds ("Participants")
or otherwise, to the Beneficial Owners. Neither the City nor the
Paying Agent shall have any responsibility or obligation for the
payment to any Participant, any Beneficial Owner or any other
person (except a registered owner of Bonds) of the principal of,
interest on or any premium due in connection with the redemption
of the Bonds. If the date for making or giving any payment,
determination or notice described herein is a Saturday, Sunday,
legal holiday or any other day on which the office of the Paying
Agent or Registrar is authorized or required by law to remain
closed, such payment, determination or notice shall be made or
given on the next succeeding day which is not a Saturday, Sunday,
legal holiday or other day on which the office of the Paying Agent
or Registrar is authorized or required by law to remain closed.
Notwithstanding any other provision of this Ordinance to
the contrary, so long as any Bond is registered in the name of Cede
& Co. , as nominee for the Securities Depository, all payments with
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respect to principal of, interest on and any premium due in
connection with the redemption of such Bond shall be made in the
manner provided in the Letter of Representations.
6. Redemption. Bonds maturing in the years
through shall not be subject to optional redemption prior to
their respective maturity dates. Bonds maturing in the year
and thereafter shall be subject to optional redemption prior to
their respective maturity dates, in whole or in part in inverse
order of maturity and by lot within a maturity, on December 1,
, and on any interest payment date thereafter at a price equal
to the principal amount of each Bond so redeemed plus accrued
interest thereon to the redemption date plus a premium expressed
as a percentage of the principal amount of each Bond so redeemed,
depending on the redemption date, as follows:
Redemption Dates Premiums
December 1, , and June 1, $
December 1, , and Thereafter None
Bonds maturing in the year shall also be subject to
mandatory sinking fund redemption prior to their maturity date, by
lot, on the dates specified below at a price equal to the principal
amount of each Bond so redeemed plus accrued interest thereon to
the redemption date. Such Bonds shall be redeemed on December 1
in the following years in the following aggregate principal
amounts:
Years Principal Amounts
Bonds maturing in the year shall also be subject to
mandatory sinking fund redemption prior to their maturity date, by
lot, on the dates specified below at a price equal to the principal
amount of each Bond so redeemed plus accrued interest thereon to
the redemption date. Such Bonds shall be redeemed on December 1
in the following years in the following aggregate principal
amounts:
Years Principal Amounts
Bonds which are redeemable prior to their respective
maturity dates may be redeemed in part if issued in denominations
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.. ... ......... ..
which are integral multiples of $5,000. Such Bonds shall be
treated as representing a corresponding number of separate Bonds
in the denomination of $5,000 each. Any such Bond to be redeemed
in part shall be surrendered for partial redemption in the manner
hereinafter provided for transfers of ownership. Upon payment of
the redemption price of any such Bond redeemed in part the
registered owner thereof shall receive a new Bond or Bonds of
authorized denominations in aggregate principal amount equal to
the unredeemed portion of the Bond surrendered.
Unless waived by the registered owners of any Bonds to
be redeemed, notice of redemption shall be given by the Paying
Agent in the name of the City by sending a copy thereof by
certified or registered first-class postage prepaid mail, not less
than thirty (30) nor more than sixty (60) days prior to the
redemption date, to the registered owner of each of the Bonds being
redeemed determined as of the close of business on the date
preceding the first mailing of such notice at the address appearing
on the registration books of the City. Such notice shall specify
the number or numbers of the Bonds to be redeemed, whether in whole
or in part, the principal amounts thereof and the date fixed for
redemption and shall further state that on the redemption date
there will be due and payable upon each Bond or part thereof so to
be redeemed the principal amount or part thereof plus accrued
interest thereon to the redemption date plus any premium due and
that from and after such date interest will cease to accrue. In
addition, the Paying Agent is hereby authorized to give such other
or further notice as may be required by law and to comply with any
operational procedures and requirements of the Securities
Depository relating to redemption of Bonds and notice thereof.
Failure to mail any notice as aforesaid or any defect in any notice
so mailed with respect to any Bond shall not affect the validity
of the redemption proceedings with respect to any other Bond. Any
Bonds redeemed prior to their respective maturity dates by call for
prior redemption or otherwise shall not be reissued and shall be
cancelled the same as Bonds paid at or after maturity.
Notwithstanding any other provision of this Ordinance to
the contrary, so long as any Bond is registered in the name of
Cede & Co. , as nominee for the Securities. Depository, all notices
with respect to the Bonds shall be given in the manner provided in
the Letter of Representations.
7. Execution and Authentication. The Bonds shall be
executed by and on behalf of the City with the facsimile or manual
signature of the Mayor, shall bear a facsimile or manual impression
of the seal of the City, shall be attested with the facsimile or
manual signature of the City Clerk, shall be countersigned with the
facsimile or manual signature of the Financial Officer of the City,
and shall be authenticated with the manual signature of the
8
Registrar. Should any officer whose facsimile or manual signature
appears on the Bonds cease to be such officer before issuance and
delivery of any Bond, such facsimile or manual signature shall
nevertheless be valid and sufficient for all purposes. No Bond
shall be valid or become obligatory for any purpose or be entitled
to any security or benefit under this Ordinance unless and until
the certificate of authentication on such Bond shall have been duly
executed by the Registrar, and such executed certificate upon any
such Bond shall be conclusive evidence that such Bond has been
authenticated and delivered under this Ordinance.
8. Registration. Transfer and Exchange. Upon their
execution and authentication and prior to their delivery the Bonds
shall be registered for the purpose of payment of principal and
interest with the Registrar. Initially, each Bond shall be
registered in the name of the Securities Depository or a nominee
therefor. Except as hereinafter provided, all of the Bonds shall
continue to be registered in the name of the Securities Depository
or a nominee therefor. To the extent that typewritten Bonds,
rather than printed Bonds, are to be delivered, such modifications
to the form of Bond as may be necessary or desirable in such case
are hereby authorized and approved. There shall be no substantive
change to the terms and conditions set forth in the form of Bond,
except as otherwise authorized by this Ordinance or any amendment
thereto.
Neither the City nor the Registrar shall have any
responsibility or obligation with respect to the accuracy of the
records of the Securities Depository or a nominee therefor or any
Participant regarding any ownership interest in the Bonds or the
delivery to any Participant, Beneficial Owner or any other person
(except a registered owner of Bonds) of any notice with respect to
the Bonds.
The Bonds shall be transferable only upon the
registration books of the City by the Financial Officer of the
City, as transfer agent (the "Transfer Agent") , at the request of
the registered owner thereof or his, her or its duly authorized
attorney-in-fact or legal representative. The Registrar or
Transfer Agent shall accept a Bond for registration or transfer
only if the registered owner is to be an individual, a corporation,
a partnership, or a trust. A Bond may be transferred upon `
surrender thereof together with a written instrument of transfer
duly executed by the registered owner or his, her or its duly
authorized attorney-in-fact or legal representative with guaranty
of signature satisfactory to the Transfer Agent, containing written
instructions as to the details of the transfer, along with the
social security number or federal employer identification number
of the transferee and, if the transferee is a trust, the names and
social security numbers of the settlors and the beneficiaries of
9
the trust. The Transfer Agent shall not be required to transfer
ownership of any Bond during the fifteen (15) days prior to the
first mailing of any notice of redemption or to transfer ownership
of any Bond selected for redemption on or after the date of such
mailing. The registered owner of any Bond or Bonds may also
exchange such Bond or Bonds for another Bond or Bonds of authorized
denominations. Transfers and exchanges shall be made without
charge, except that the Transfer Agent may require payment of a sum
sufficient to defray any tax or other governmental charge that may
hereafter be imposed in connection with any transfer or exchange
of Bonds. No transfer of any Bond shall be effective until entered
on the registration books of the City. In the case of every
transfer or exchange, the Transfer Agent shall deliver to the new
registered owner a new Bond or Bonds of the same aggregate
principal amount, maturing in the same year, and bearing interest
at the same per annum interest rate as the Bond or Bonds
surrendered. Such Bond or Bonds shall be dated as of their date
of authentication. New Bonds delivered upon any transfer or
exchange shall be valid obligations of the City, evidencing the
same debt as the Bonds surrendered, shall be secured by this
Ordinance, and shall be entitled to all of the security and
benefits hereof to the same extent as the Bonds surrendered. The
City may deem and treat the person or entity in whose name any Bond
is last registered upon the books of the City as the absolute owner
thereof for the purpose of receiving payment of the principal of,
interest on, and any premium due in connection with the redemption
of such Bond and for all other purposes, and all such payments so
made to such person or entity or upon his, her or its order shall
be valid and effective to satisfy and discharge the liability of
the City upon such Bond to the extent of the sum or sums so paid,
and the City shall not be affected by any notice to the contrary.
Neither the City nor the Transfer Agent shall have any
responsibility or obligation with respect to the accuracy of the
records the Securities Depository or its Participants regarding any
ownership interest in the Bonds or transfers thereof.
The City may remove the Securities Depository and the
Securities Depository may resign by giving sixty (60) days' written
notice to the other of such removal or resignation. Additionally,
the Securities Depository shall be removed sixty (60) days after
receipt by the City of written notice from the Securities
Depository to the effect that the Securities Depository has
received written notice from Participants having interests, as
shown in the records of the Securities Depository, in an aggregate
principal amount of not less than 50% of the aggregate principal
amount of the then outstanding Bonds to the effect that the
Securities Depository is unable or unwilling to discharge its
responsibilities or a continuation of the requirement that all of
the outstanding Bonds be registered in the name of the Securities
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Depository or a nominee therefor is not in the best interests of
the Beneficial Owners. Upon the removal or resignation of the
Securities Depository, the Securities Depository shall take such
action as may be necessary to assure the orderly transfer of the
computerized book-entry system with respect to the Bonds to a
successor securities depository or, if no successor securities
depository is appointed as herein provided, the transfer of the
Bonds in certificate form to the Beneficial Owners or their
designees. Upon the giving of notice by the City of the removal
of the Securities Depository, the giving of notice by the
Securities Depository of its resignation or the receipt by the City
of notice with respect to the written notice of Participants
referred to herein, the City may, within sixty (60) days after the
giving of such notice, appoint a successor securities depository
upon such terms and conditions as the City shall impose. Any such
successor securities depository shall at all times be a registered
clearing agency under the Securities and Exchange Act of 1934, as
amended, or other applicable statute or regulation, and in good
standing thereunder. If the City fails to appoint a successor
securities depository within such time period, the Bonds shall no
longer be restricted to being registered in the name of the
Securities Depository or a nominee therefor, but may be registered
in whatever name or names registered owners transferring or
exchanging Bonds shall designate.
9. Replacement of Bonds. If any Bond shall have been
lost, destroyed or wrongfully taken, the City shall provide for
the replacement thereof in the manner set forth and upon receipt
of the evidence, indemnity bond and reimbursement for expenses
provided in Section 8-41 of the City Code.
10. Recitals in Bonds. Each Bond shall recite that it
is issued under the authority of the Constitution of the State of
Colorado, the Charter of the City, the Act and this Ordinance. The
Act provides that such recital conclusively imparts full compliance
with all of the provisions and limitations thereof and that the
Bonds containing such recital are incontestable for any cause
whatsoever after their delivery for value.
11. Form of Bonds. The Bonds shall be in substantially
the following form: 6
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[Form of Bond]
(Text of Face)
UNITED STATES OF AMERICA
STATE OF COLORADO COUNTY OF LARIMER
CITY OF FORT COLLINS
GENERAL OBLIGATION WATER REFUNDING BOND
SERIES 1992B
No. R- $
Interest Maturity Original
Rate Date Date CUSIP
December 1, March 1, 1992
REGISTERED OWNER: Cede & Co.
PRINCIPAL SUM:
The City of Fort Collins, in the County of Larimer and
State of Colorado, for value received, hereby acknowledges itself
indebted and promises to pay to the Registered Owner (specified
above) , or registered assigns, the Principal Sum (specified above) ,
in lawful money of the United States of America, on the Maturity
Date (specified above) , with interest thereon from the Original
Date (specified above) , or the interest payment date to which
interest has been paid next preceding the date hereof, whichever
is later, to the Maturity Date, except if redeemed prior thereto,
at the per annum Interest Rate (specified above) , payable
semiannually on the first day of June and the first day of December
of each year, commencing on December 1, 1992, or the first such
date after the date hereof, whichever is later, in the manner
provided herein. If upon presentation at maturity payment of the
Principal Sum is not made as provided herein, interest thereon
continues at the Interest Rate until the Principal Sum is paid in
full.
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Bonds maturing in the years through are not
subject to optional redemption prior to their respect vi a maturity
dates. Bonds maturing in the year and thereafter are subject
to optional redemption prior to their respective maturity dates,
in whole or in part in inverse order of maturity and by lot within
a maturity, on December 1, , and on any interest payment date
thereafter at a price equal to the principal amount of each Bond
so redeemed plus accrued interest thereon to the redemption date
plus a premium expressed as a percentage of the principal amount
of each Bond so redeemed, depending on the redemption date, as
follows:
Redemption Dates Premiums
December 1, , and June 1, %
December 1, , and Thereafter None
Bonds maturing in the year are also subject to
mandatory sinking fund redemption prior to their maturity date, by
lot, on the dates specified below at a price equal to the principal
amount of each Bond so redeemed plus accrued interest thereon to
the redemption date. Such Bonds are to be redeemed on December 1
in the following years in the following aggregate principal
amounts:
Years Principal Amounts
Bonds maturing in the year are also subject to
mandatory sinking fund redemption prior to their maturity date, by
lot, on the dates specified below at a price equal to the principal
amount of each Bond so redeemed plus accrued interest thereon to
the redemption date. Such Bonds are to be redeemed on December 1
in the following years in the following aggregate principal
amounts:
Years Principal Amounts 6
Bonds which are redeemable prior to their respective
maturity dates may be redeemed in part if issued in denominations
which are integral multiples of $5,000. in such case the Bond is
to be surrendered in the manner provided for transfers of
ownership. Upon payment of the redemption price the Registered
13
owner is to receive a new Bond or Bonds of authorized denominations
in aggregate principal amount equal to the unredeemed portion of
the Bond surrendered.
Unless waived by the registered owners of any Bonds to
be redeemed, notice of redemption of any Bonds is to be given by
the paying agent in the name of the City by sending a copy of such
notice by certified or registered first-class postage prepaid mail,
not less than thirty (30) nor more than sixty (60) days prior to
the redemption date, to the registered owner of each of the Bonds
being redeemed determined as of the close of business on the day
preceding the first mailing of such notice at the address appearing
on the registration books of the City. Such notice is to specify
the number or numbers of the Bonds to be redeemed, whether in whole
or in part, the principal amounts thereof and the date fixed for
redemption and is further to state that on the redemption date
there will be due and payable upon each Bond or part thereof so to
be redeemed the principal amount or part thereof plus accrued
interest thereon to the redemption date plus any premium due and
that from and after such date interest will cease to accrue. In
addition, the paying agent is authorized to give such other or
further notice as may be required by law and to comply with any
operational procedures and requirements of The Depository Trust
Company relating to redemption of Bonds and notice thereof.
Failure to mail any notice as aforesaid or any defect in any notice
so mailed with respect to any Bond does not affect the validity of
the redemption proceedings with respect to any other Bond.
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF
THIS BOND SET FORTH ON THE REVERSE HEREOF.
The full faith and credit of the City is hereby pledged
for the punctual payment of the principal of and interest on this
Bond.
IN WITNESS WHEREOF, the City has caused this Bond to be
executed in its name and on its behalf with the facsimile or manual
signature of the Mayor of the City, to be sealed with a facsimile
or manual impression of the seal of the City, to be attested with
'6
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the facsimile or manual signature of the City Clerk of the City,
and to be countersigned with the facsimile or manual signature of
the Financial Officer of the City.
CITY OF FORT COLLINS, COLORADO
(CITY) By: (Facsimile or Manual
(SEAL) Signature)
Mayor
ATTEST:
(Facsimile or Manual Signature)
City Clerk
Countersigned:
(Facsimile or Manual Signature)
Financial Officer
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CERTIFICATE OF AUTHENTICATION
This Bond is issued pursuant to the Ordinance herein described.
Printed on the reverse hereof is the complete text of the opinion
of bond counsel, Ballard Spahr Andrews & Ingersoll, Denver,
Colorado, a signed copy of which, dated the date of the first
delivery of the Bonds herein described, is on file with the
undersigned.
FINANCIAL OFFICER OF THE CITY OF FORT COLLINS, COLORADO
as registrar
By: (Manual Sianature)
Authorized Signatory
Dated:
16
ABBREVIATIONS
The following abbreviations, when used in the inscription
on the face of this Bond, shall be construed as though they were
written out in full according to applicable laws or regulations.
TEN CON - as tenants in common
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with the right of survivorship
and not as tenants in common
UNIF TRANS MIN ACT Custodian
(Cust) (Minor)
under Uniform Transfers to Minors Act
(State)
Additional abbreviations may also be used
though not on the above list.
:a
17
(Text of Reverse)
The principal of, interest on, and any premium due in
connection with the redemption of this Bond are payable to the
Registered Owner by the Financial Officer of the City, as paying
agent. The principal and the final installment of interest are
payable to the Registered Owner upon presentation and surrender of
this Bond at maturity or upon prior redemption by check or draft
mailed to the Registered Owner at the address appearing on the
registration books of the City maintained by the Financial Officer
of the City, as registrar, or by wire transfer to such bank or
other depository as the Registered Owner shall designate in writing
to the paying agent. Except as hereinbefore or hereinafter
provided, the interest is payable to the Registered owner
determined as of the close of business on the regular record date,
which is to be the fifteenth day of the calendar month next
preceding the interest payment date, irrespective of any transfer
of ownership hereof subsequent to the regular record date and prior
to such interest payment date, by check or draft or wire transfer
directed to the Registered Owner as aforesaid. Any interest hereon
not paid when due and any interest hereon accruing after maturity
is payable to the Registered Owner determined as of the close of
business on the special record date, which is to be fixed by the
paying agent for such purpose, irrespective of any transfer of
ownership of this Bond subsequent to such special record date and
prior to the date fixed by the paying agent for the payment of such
interest, by check or draft or wire transfer directed to the
Registered Owner as aforesaid. Notice of the special record date
and of the date fixed for the payment of such interest is to be
given by sending a copy thereof by certified or registered
first-class postage prepaid mail, at least fifteen (15) days prior
to the special record date, to the registered owner of each Bond
upon which interest will be paid determined as of the close of
business on the day preceding such mailing at the address appearing
on the registration books of the City. Any premium is payable to
the Registered Owner upon presentation and surrender of this Bond
upon prior redemption by check or draft or wire transfer directed
to the Registered Owner as aforesaid. If the date for making or
giving any payment, determination or notice described herein is a
Saturday, Sunday, legal holiday or any . other day on which the
office of the paying agent or registrar is authorized or required d
by law to remain closed, such payment, determination or notice is
to be made or given on the next succeeding day which is not a
Saturday, Sunday, legal holiday or other day on which the office
of the paying agent or registrar is authorized or required by law
to remain closed.
So long as the Registered owner is the securities
depository or a nominee therefor, the securities depository is to
18
disburse any payments received, through its participants or
otherwise, to the beneficial owner or owners hereof.
Neither the City nor the paying agent has any
responsibility or obligation for the payment to any participant,
any beneficial owner hereof or any other person (except the
Registered Owner) of the principal of, interest on or any premium
due in connection with the redemption of this Bond.
Neither the City nor the registrar has any responsibility
or obligation with respect to the accuracy of the records of the
securities depository or a nominee therefor or any participant with
respect to any ownership interest in the Bonds or the delivery to
any participant, beneficial owner or any other person (except the
Registered owner) of any notice with respect to the Bonds.
This Bond is issued by the City for the purpose of
refunding, paying and discharging certain outstanding general
obligation water refunding and improvement bonds of the City
pursuant to, by virtue of, and in full conformity with the
Constitution of the State of Colorado, the Charter of the City,
part 1 of article 56 of title 11, Colorado Revised Statutes, as
amended, and all other laws of the State of Colorado thereunto
enabling, and pursuant to an ordinance of the City duly adopted
prior to the issuance of this Bond. The foregoing recital
conclusively imparts full compliance with all of the provisions and
limitations of the above-cited statute, and said statute provides
that this Bond is incontestable for any cause whatsoever after its
delivery for value.
It is hereby recited, certified and warranted that the
total indebtedness of the City, including that of this Bond, does
not exceed any constitutional, charter or statutory limitation of
the State of Colorado or of the City; that provision has been made
for the levy and collection of general (ad valorem) taxes on all
the taxable property within the City and for the pledge of the net
revenues derived from the operation of the water system of the City
in amounts sufficient to pay the principal of and interest on this
Bond as the same become due; and that this Bond constitutes a first
lien (but not necessarily an exclusive first lien) on said net
revenues.
Reference is hereby made to the ordinance of the City
authorizing the issuance of this Bond, and to any and all
modifications thereof and amendments thereto, for a description of
the provisions, terms and conditions upon which this Bond is issued
and secured, including, without limitation, definition of terms
used herein, the nature and extent of the security for this Bond,
provisions with respect to the application of the proceeds of this
19
Bond, the rights, duties and obligations of the City and the
members of its Council, and the rights of the Registered Owner.
This Bond is transferable only upon the registration
books of the City by the Financial Officer of the City, as transfer
agent, at the request of the Registered Owner or his, her or its
duly authorized attorney-in-fact or legal representative, upon
surrender hereof together with a written instrument of transfer
duly executed by the Registered Owner or his, her or its duly
authorized attorney-in-fact or legal representative with guaranty
of signature satisfactory to the transfer agent, containing written
instructions as to the details of the transfer, along with the
social security number or federal employer identification number
of the transferee and, if the transferee is a trust, the names and
social security numbers of the settlors and beneficiaries of the
trust. The transfer agent is not required to transfer ownership
of this Bond during the fifteen (15) days prior to the first
mailing of any notice of redemption or to transfer ownership of any
Bond selected for redemption on or after the date of such mailing.
The Registered Owner may also exchange this Bond for another Bond
or Bonds of authorized denominations. Transfers and exchanges are
to be made without charge, except that the transfer agent may
require payment of a sum sufficient to defray any tax or other
governmental charge that may hereafter be imposed in connection
with any transfer or exchange of Bonds. No transfer of this Bond
is to be effective until entered on the registration books of the
City. In the case of every transfer or exchange, the transfer
agent is to deliver to the new registered owner a new Bond or Bonds
of the same aggregate principal amount, maturing in the same year,
and bearing interest at the same per annum interest rate as the
Bond or Bonds surrendered. Such Bond or Bonds are to be dated as
of their date of authentication. The City may deem and treat the
person or entity in whose name this Bond is last registered upon
the books of the City as the absolute owner hereof for the purpose
of receiving payment of the principal of, interest on, and any
premium due in connection with the redemption of this Bond and for
all other purposes, and all such payments so made to such person
or entity or upon his, her or its order will be valid and effective
to satisfy and discharge the liability of the City upon this Bond
to the extent of the sum or sums so paid, and the City will not be
affected by any notice to the contrary.
Neither the City nor the transfer agent has any
responsibility or obligation with respect to the accuracy of the
records of the securities depository or its participants regarding
any ownership interest in the Bonds or transfers thereof.
The City may remove the securities depository and the
securities depository may resign by giving sixty (60) days, written
notice to the other of such removal or resignation. Additionally,
20
the securities depository is to be removed sixty (60) days after
receipt by the City of written notice from the securities
depository to the effect that the securities depository has
received written notice form participants having interests, as
shown in the record s of the securities depository, in an aggregate
principal amount of not less than 50% of the aggregate principal
amount of the then outstanding Bonds to the effect that the
securities depository is unable or unwilling to discharge its
responsibilities or a continuation of the requirement that all of
the outstanding Bonds be registered in the name of the securities
depository or a nominee therefor is not in the best interests of
the beneficial owners. Upon the removal or resignation of the
securities depository, the securities depository is to take such
action as may be necessary to assure the orderly transfer of the
computerized book-entry system with respect to the Bonds to a
successor securities depository or, if no successor securities
depository is appointed as herein provided, the transfer of the
Bonds in certificate form to the beneficial owners or their
designees. Upon the giving of notice by the City of the removal
of the securities depository, the giving of notice by the
securities depository of its resignation or the receipt by the City
of notice with respect to the written notice by participants
referred to herein, the City may, within sixty (60) days after the
giving of such notice, appoint a successor securities depository
upon such terms and conditions as the City shall impose. Any such
successor securities depository must at all times be a registered
clearing agency under the Securities and Exchange Act of 1934, as
amended, or other applicable statute or regulation and in good
standing thereunder. If the City fails to appoint a successor
securities depository within such time period, the Bonds are no
longer to be restricted to being registered in the name of the
securities depository or a nominee therefor, but may be registered
in whatever name or names registered owners transferring or
exchanging Bonds shall designate.
6
21
(Assignment)
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned sells, assigns and
transfers unto
PLEASE INSERT SOCIAL SECURITY OR
OTHER IDENTIFYING NUMBER OF ASSIGNEE
(Name and Address of Assignee)
this Bond and does hereby irrevocably constitute and appoint
, or its successors,
to transfer this Bond on the books kept for registration thereof.
Dated:
Signature guaranteed:
(Bank, Trust Company or Firm)
NOTICE: The signature to this
assignment must correspond with
the name of the Registered Owner
as it appears upon the face of
this Bond in every particular
without alteration or
enlargement or any change
whatever.
[End of Form of Bond]
22
12. Disposition of Bonds and Proceeds. The Bonds, when
executed, authenticated and registered as provided herein, shall
be delivered by the City to the Purchaser upon receipt of full
payment therefor in accordance with the Bond Purchase Agreement.
Interest accrued on the Bonds from the date thereof to
the delivery date thereof shall be applied to the payment of
interest first due on the Bonds. The original proceeds of the
Bonds, exclusive of accrued interest, shall be used for the
purposes stated herein and for no other purposes, provided,
however, that any portion of the Bond proceeds may be temporarily
invested pending such use, with such temporary investment to be
made consistent with the covenant made in Section 19 hereof.
Neither the Purchaser nor any subsequent owner of the Bonds shall
be in any way responsible for the application of the proceeds of
the Bonds by the City or any of its officers.
13. Escrow Fund. A special fund is hereby created and
designated as the "City of Fort Collins, Colorado, General
Obligation Water Refunding Bonds, Series 1992B, Escrow Fund" (the
"Escrow Fund") . A portion of the original proceeds of the Bonds,
exclusive of accrued interest, shall be deposited in the Escrow
Fund as provided in the Escrow Agreement. The City shall purchase
the bills, certificates of indebtedness, notes, bonds or similar
securities which are direct obligations of, or the principal and
interest of which obligations are unconditionally guaranteed by,
the United States of America ("Federal Securities") in which the
moneys in the Escrow Fund are to be invested and fund the required
cash balance as provided in the Escrow Agreement and in accordance
with the proposal submitted by the Purchaser. The Escrow Fund
shall be maintained in an amount at the time of the deposit
therein, and at all times subsequently, at least sufficient,
together with the known minimum yield to be derived from the
investment of the deposits therein or any part thereof in Federal
Securities, to pay the principal of, interest on, and any premium
due in connection with the redemption of the Refunded Bonds as the
same become due. Moneys shall be withdrawn by the Escrow Bank from
the Escrow Fund in sufficient amounts and at times to permit the
payment of said amounts. Any moneys remaining in the Escrow Fund
after provision has been made for the payment of said amounts shall
be applied to any lawful purposes of the City as the Council may 6
hereafter determine. If for any reason the amount in the Escrow
Fund shall at any time be insufficient for the purposes
hereinbefore set forth, the City shall forthwith from the first
moneys available therefor deposit therein such additional moneys
as shall be necessary to permit the payment in full of said
amounts.
14. Redemption of Refunded Bonds Notice of Refunding
and Redemption of Refunded Bonds. The City hereby exercises its
23
option to redeem the Refunded Bonds, prior to their respective
maturity dates, on December 1, 1995, at a price equal to the
principal amount of each Refunded Bond so redeemed plus accrued
interest thereon to the redemption date plus a premium equal to
2.5% of the principal amount of each Refunded Bond so redeemed.
The paying agent for the Prior Bonds is hereby authorized and
directed to give forthwith and again no later than October 31,
1995, notice of refunding and redemption of the Refunded Bonds.
The notice of refunding and redemption of the Refunded Bonds shall
be given by sending a copy of such notice by certified or
registered first-class postage prepaid mail to Chemical Bank and
to the registered owners of each of the Refunded Bonds. The notice
of refunding and redemption of the Refunded Bonds shall be in
substantially the following form:
6
24
[Form of Notice]
NOTICE OF REFUNDING AND REDEMPTION
OF
CITY OF FORT COLLINS, COLORADO
GENERAL OBLIGATION WATER REFUNDING AND IMPROVEMENT BONDS
SERIES 1986
DATED AUGUST 1, 1986 - $33,030, 000
NOTICE IS HEREBY GIVEN to the registered owners of all
outstanding City of Fort Collins, Colorado, General Obligation
Water Refunding and Improvement Bonds, Series 1986, dated August 1,
1986, in the original aggregate principal amount of $33, 030, 000
maturing in the year 1996 and thereafter (the "Refunded Bonds")
that the City of Fort Collins, Colorado (the "City") , has issued
General Obligation Water Refunding Bonds, Series 1992B, dated
March 1, 1992, in the aggregate principal amount of $25, 695, 000,
and deposited a portion of the proceeds thereof in escrow with
, , Colorado, which
proceeds have been invested in bills, certificates of indebtedness,
notes or bonds which are direct obligations of, or the principal
and interest of which obligations are unconditionally guaranteed
by, the United States of America for the payment of the principal
of, interest on, and any premium due in connection with the
redemption of the Refunded Bonds as the same become due.
According to a report pertaining to such escrow prepared
by a firm of certified public accountants licensed to practice in
Colorado, the escrow, including the known minimum yield from such
investments, is fully sufficient at the time of the deposit and at
all times subsequently, to pay the principal of, interest on, and
any premium due in connection with the redemption of the Refunded
Bonds as the same become due.
NOTICE IS FURTHER HEREBY GIVEN that the City has
exercised its option to redeem in whole the Refunded Bonds numbered
, prior to their respective maturity dates, on December 1,
1995, at a price equal to the principal amount of each Refunded
Bond so redeemed plus accrued interest thereon to the redemption
date plus a premium equal to 2.5% of the principal amount of each
Refunded Bond so redeemed.
On the redemption date there will be come and will be due
and payable upon each Refunded Bond so to be redeemed the principal
amount thereof plus accrued interest thereon to the redemption date
plus a premium equal to 2 .5% of the principal amount thereof, and
from and after the redemption date interest will cease to accrue.
25
Each such Refunded Bond will be redeemed on or after the redemption
date upon presentation and surrender thereof.
DATED this day of _, 19_
CITY OF FORT COLLINS, COLORADO
Financial Officer
[End of Form of Notice}
6
26
15. Water Fund. The remaining portion of the original
proceeds of the Bonds, exclusive of accrued interest, shall be
deposited in the Water Fund of the City (the "Water Fund") . Bond
proceeds so deposited shall be withdrawn and expended for the
purpose of paying the costs of issuing the Bonds. Any Bond
proceeds remaining in the Water Fund after the payment of the costs
of issuing the Bonds shall be applied to any lawful purposes of the
City as the Council may hereafter determine.
16. Pledae of Ad Valorem Taxes and Water Revenues. If
required, the interest to become due on the Bonds in 1992 shall be
advanced from any revenues or funds of the City lawfully available
therefor. For the purpose of reimbursing any such advance and also
for the purpose of paying the principal of and interest on the
Bonds as the same become due and payable, the Council shall
annually fix and certify a rate of levy for ad valorem taxes to the
Board of County Commissioners of Larimer County, Colorado, which
taxes, when levied on all of the taxable property in the City in
each year so long as any Bonds remain outstanding, will raise ad
valorem tax revenues sufficient to make such reimbursement and to
pay such Bond principal and interest as the same become due. In
the event any of said levies shall fail to produce an amount
sufficient to pay the principal of and interest on the Bonds
becoming due in the next succeeding year, the deficit shall be made
up in the next levy, and taxes shall be levied until the principal
of and interest on the Bonds shall be fully paid or discharged.
In addition to the provision for tax levies for the
payment of the Bonds, the City hereby irrevocably pledges to pay
the principal of and the interest on the Bonds from the net
revenues of the Water System. The City hereby reserves the right
to secure, without restriction, any water bonds, water refunding
bonds and leases and contracts relating to the Water System
hereafter issued or entered into by the City equally and ratably
with the Bonds. The City also hereby commits itself to fix and
annually to maintain rates, fees, tolls, and charges for water and
services furnished by the Water System which, together with other
moneys legally available therefor, will be sufficient to pay
operation and maintenance expenses of the Water System and the
principal of and interest on all bonds and other obligations of the
City pertaining to the Water System, as they respectively become
due, and for the other payments required by Art. XII, Section 6 of
the Charter of the City. The term "net revenues" as used herein
refers to the gross revenues of the Water System after the payment
of operation and maintenance expenses. The term "operation and
maintenance expenses" as used herein means all current reasonable
and necessary expenses of operating, maintaining and repairing the
Water System, but does not include any allowance for depreciation
or capital replacements and improvements. The term "Water System"
as used herein includes not only the property comprising the Water
27
System of the City at the present time, but all additions and
betterments thereto and improvements and extensions thereto which
may hereafter be acquired, constructed or installed by the City.
It shall be the duty of the Council annually at the time
and in the manner provided by law, if such action shall be
necessary to effectuate the provisions of this Ordinance, to ratify
and carry out the provisions hereof with reference to the levy and
collection of the ad valorem taxes and the imposition,
administration, enforcement and collection of the water rates,
fees, tolls and charges, all as herein specified, and to require
the officers of the City to levy, extend and collect said ad
valorem taxes in the manner provided by law and to impose,
administer, enforce and collect said water rates, fees, tolls and
charges for the purpose of providing funds for the payment of the
operation and maintenance expenses of the Water System and the
payment of the principal of and interest on the Bonds as the same
become due.
17. Use of Water Fund. Interest accrued on the Bonds
from the date thereof to the delivery date thereof and all ad
valorem taxes and water revenues, when collected, shall be
deposited in the Water Fund. From any moneys on deposit in the
Water Fund or, if required, from any other unrestricted fund of
the City, the City shall pay each maturing installment of principal
and interest on the Bonds and any other obligations issued and made
payable from the Water Fund until the Bonds, both principal and
interest, shall be fully paid or discharged. Nothing herein
contained shall be so construed as to prevent the City from
committing and applying any other funds or revenues that may now
or hereafter be in the possession of the City and legally available
for the purpose of payment of the principal of and interest on the
Bonds. The Water Fund shall be maintained as a sinking fund for
the mandatory redemption of Bonds maturing in the years and
Any mandatory sinking fund redemption shall be treated as
a maturing installment of principal for purposes of this
Section 17.
18. Excess Investment Earnings Account. There is hereby
created within the Water Fund the City of Fort Collins, Colorado,
General Obligation Water Refunding Bonds, Series 1992B, Excess
Investment Earnings Account (the "Excess Investment Earnings
Account") , into which the Financial Officer shall transfer, and
from which the Financial Officer shall pay, the amount of required
arbitrage rebate, if any, due to the United States government under
Sections 103 and 148 (f) (2) of the Internal Revenue Code of 1986,
as amended (the "Tax Code") , and regulations promulgated
thereunder. The Financial Officer shall determine such amounts in
the manner required by the Tax Code and .related regulations.
Transfer of the required arbitrage rebate amounts shall be made
28
from the Water Fund, provided, however, that required arbitrage
rebate payments shall be made to the United States government from
any legally available funds if there are no moneys in the Water
Fund available for such purpose.
All amounts in the Excess Investment Earnings Account,
including income earned from the investment of moneys therein,
shall be held by the Financial Officer free and clear of any lien
created by this Ordinance, and the Financial Officer shall pay
required arbitrage rebate amounts over to the United States
government from time to time as the Financial Officer shall
determine, provided that the Financial Officer shall so pay over
to the United States of America (a) not less frequently than once
each five years after the date of issuance of the Bonds, an amount
equal to 90% of the required arbitrage rebate amount earned during
such period (and not theretofore paid to the United States
government) and (b) not later than sixty (60) days after the
redemption of the last Bond, 100% of the required arbitrage rebate
amount.
19. Tax Matters. The City shall make no investment or
other use of the proceeds of the Bonds at any time during the term
thereof which will cause the interest on the Bonds to be includible
in gross income under the Tax Code and the regulations promulgated
thereunder and shall comply with all other covenants and
certifications relating to the Tax Code made by it in connection
with the issuance of the Bonds. The foregoing covenant shall
remain in effect notwithstanding the payment in full or defeasance
of the Bonds until the date on which all obligations of the City
in fulfilling the above covenant under the Tax Code have been met.
20. Covenants. The City covenants that so long as any
of the Bonds remain outstanding and unpaid:
a. It will continue to operate and manage the
Water System in an efficient and economical manner and
keep and maintain separate accounts of the receipts and
disbursements thereof in such manner that the revenues
thereof may at all times be readily and accurately
determined.
6
b. It will not sell or alienate any of the
property constituting all or any part of the Water System
in any manner or to any extent as might reduce the
security provided for the payment of the Bonds, but the
City may sell any portion of such property which shall
have been replaced by other similar property of at least
equal value or which shall cease to be necessary for the
efficient operation of the Water System.
29
C. The rates, fees, tolls and charges for all
services rendered by the Water 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 the Water System and the proper and necessary
allowance 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 Water System and the interest thereon.
d. There shall be charged against all purchasers
of service such rates, fees, tolls, and charges as shall
be adequate to meet the requirements of this Ordinance.
e. The City shall cause all rates, fees, tolls and
charges appertaining to the Water System to be collected
as soon as reasonable, shall prescribe and enforce rules
and regulations for the payment thereof and for the
connection with and the disconnection from properties of
the Water System, and shall provide methods of collection
and penalties, including but not limited to denial of
service for non-payment of such rates, fees, tolls and
charges to the end that net revenues of the Water System
shall be adequate to meet the requirements hereof.
f. At regular periods each year it will render
bills for water services furnished. Until paid, all
water rates, fees, tolls and charges shall constitute a
lien on the property served, and the City shall take
whatever action is legally permissible promptly to
enforce and collect delinquent water rates, fees, tolls
and charges and to preserve and enforce said liens.
g. At least once each year it will furnish the
Purchaser with a complete statement of the receipts and
disbursements of and for the Water System for the fiscal
year immediately preceding such statement.
h. It will carry workers' compensation, public
liability and other forms of insurance on insurable Water
System property in such amounts as is customarily carried
on prudently operated systems of like character.
21. Apnrooriation of Sums. The sums required to pay the
costs of issuing the Bonds and to make the required deposit to the
Escrow Fund are hereby appropriated for those purposes. The sums
hereinbefore provided to pay the principal of and interest on the
Bonds, when due, are hereby appropriated for that purpose, and said
amounts for each year shall be included in the annual budget and
30
the appropriations ordinance, resolution, or measures to be adopted
or passed by the Council in each year while any of the Bonds remain
outstanding and unpaid.
22. Defeasance. When all of the principal of, the
interest on, and any premium due in connection with the redemption
of the Bonds have been duly paid, all obligations hereunder shall
thereby be discharged and the Bonds shall no longer be deemed to
be outstanding. There shall be deemed to be such due payment when
the City has placed in escrow or in trust with a trust bank located
within the State of Colorado Federal Securities in an amount
sufficient (including the known minimum yield available for such
purpose from Federal Securities in which such amount may wholly or
in part be initially invested) to pay all principal of, interest
on, and any premium due in connection with the redemption of the
Bonds. The Federal Securities shall become due prior to the
respective times at which the proceeds thereof shall be needed in
accordance with a schedule established and agreed upon between the
City and such bank at the time of the creation of the escrow or
trust, or the Federal Securities shall be subject to redemption at
the option of the owner thereof to assure such availability as so
needed to meet such schedule. Nothing herein shall be construed
to prohibit a partial defeasance of the Bonds in accordance with
the provisions hereof.
23 . Rights and Immunities. Except as herein otherwise
expressly provided, nothing herein expressed or implied is intended
or shall be construed to confer upon or to give to any person,
other than the City and the registered owners from time to time of
the Bonds, any right, remedy or claim under or by reason hereof or
any covenant, condition or stipulation hereof. All the covenants,
stipulations, promises and agreements herein contained by and on
behalf of the City shall be for the sole and exclusive benefit of
the City and any registered owner of the Bonds.
No recourse shall be had for the payment of the principal
of, interest on, or any premium due in connection with the
redemption of the Bonds or for any claim based thereon or otherwise
upon this Ordinance, or any other instrument pertaining hereto,
against any individual member of the Council or any officer or
other agent of the City, past, present or future, either directly
or indirectly through the City, or otherwise, whether by virtue of
any constitution, charter, statute or rule of law, or by the
enforcement of any penalty or otherwise, all such liability, if
any, being by the acceptance of the Bonds and as a part of the
consideration of their issuance specially waived and released.
24. Ratification. All action not inconsistent with the
provisions of this Ordinance heretofore taken by the City or its
31
officers and otherwise by the City directed toward the issuance and
delivery of the Bonds is hereby ratified, approved and confirmed.
25. Facsimile Signatures. Pursuant to the Uniform
Facsimile Signature of Public Officials Act, part 1 of article 55
of title 11, Colorado Revised Statutes, as amended, the Mayor, the
City Clerk and the Financial Officer shall forthwith, and in any
event prior to the time the Bonds are delivered to the Purchaser,
file with the Colorado Secretary of State their manual signatures
certified by them under oath.
26. Authorized Action. The officers of the City are
hereby authorized and directed to enter into such agreements and
take all action necessary or appropriate to effectuate the
provisions of this Ordinance and to comply with the requirements
of law, including without limiting the generality of the foregoing:
a. The printing of the Bonds, including the
printing upon each of such Bonds of a copy of the
approving legal opinion of Ballard Spahr Andrews &
Ingersoll, bond counsel, duly certified by the Registrar,
and, if necessary or desirable, the preparation of
typewritten Bonds as provided herein;
b. The preparation of a final official statement
for the use of prospective purchasers of the Bonds,
including the Purchaser and its associates, if any;
C. The execution of the Escrow Agreement, the
Letter of Representations and such certificates as may
reasonably be required by the Purchaser relating to the
signing of the Bonds; the tenure and identity of the City
officials; the assessed valuation and indebtedness of the
City; if in accordance with the facts the absence of
litigation, pending or threatened, affecting the validity
of the Bonds; the tax treatment of interest on the Bonds
under federal and State of Colorado income tax laws;
delivery of the Bonds and receipt of the Bond purchase
price; and the accuracy and completeness of information
provided in the final official statement prepared for
prospective purchasers of the Bonds;
d. The making of various statements, recitals,
certifications and warranties provided in the form of
Bond set forth in this Ordinance; and
e. The payment of the interest on the Bonds as
the same shall become due and the principal of the Bonds
at maturity or upon prior redemption without further
warrant or order.
32
27. Ordinance Irrepealable. This Ordinance is, and
shall constitute, a legislative measure of the City, and after the
Bonds are issued and outstanding, this Ordinance shall constitute
a contract between the City and the registered owners of the Bonds,
and shall be and remain irrepealable until the principal of and
interest on the Bonds shall have been fully paid or discharged.
28. Statutory Limitations Met. The Council hereby
determines that the provisions and limitations of the Act and any
other applicable law imposed on the issuance of the Bonds have been
met.
29. Repealer. All acts, orders, resolutions,
ordinances, or parts thereof taken by the City in conflict with
this Ordinance are hereby repealed, except that this repealer shall
not be construed so as to revive any act, order, resolution,
ordinance, or part thereof heretofore repealed.
30. Severability. If any paragraph, clause or provision
of this Ordinance is judicially adjudged invalid or unenforceable,
such judgment shall not affect, impair or invalidate the remaining
paragraphs, clauses or provisions hereof, the intention being that
the various paragraphs, clauses or provisions hereof are severable.
31. Inconsistent Provisions of Act Superseded. Any
inconsistency between the provisions of this ordinance and those
of the Act is intended by the Council. To the extent of any such
inconsistency the provisions of this Ordinance shall be deemed made
pursuant to the Charter of the City and shall supersede to the
extent permitted by law the conflicting provisions of the Act.
'a
33
INTRODUCED, READ, APPROVED ON FIRST READING, AND ORDERED
PUBLISHED BY NUMBER AND TITLE ONLY this 18th day of February, 1992 .
CITY OF FORT COLLINS, COLORADO
BY: 1
(CITY) Mayor
(SEAL)
ATTEST:
City Clerk
34
Council Member Edwards moved that Ordinance No. 31, 1992,
heretofore introduced and read by title be approved on first
reading.
Council Member Horak seconded the motion.
The question being upon the approval on first reading of
Ordinance No. 31, 1992, the roll was called with the following
results:
Council Members voting "AYE": Susan E. Kirkpatrick
Ann Azari
Dave Edwards
Cathy Fromme
Gerry Horak
Loren R . Maxey
Bob Winokur
Council Members voting "NAY": None
The Mayor declared that, a majority of the Council
Members present having voted in favor thereof, the motion was
carried and Ordinance No. 31, 1992, duly approved on first reading.
The Council deeming it appropriate, the Mayor ordered
Ordinance No. 31, 1992, published by number and title only together
with a statement that the text thereof is available for public
inspection and acquisition in the office of the City Clerk and a
notice giving the date when the Ordinance will be presented for
final passage in The Coloradoan, a newspaper of general circulation
published in the City, at least seven (7) days before presentation
for final passage.
After consideration of other business to come before the
Council, the meeting was adjourned.
mayor
City of Fort Collins, Colorado
(CITY)
(SEAL)
ATTEST:
City Cl .
City of Fort Collins, Colorado
35
STATE OF COLORADO )
COUNTY OF LARIMER ) ss.
CITY OF FORT COLLINS )
The Council of the City of Fort Collins, Colorado, held
a regular meeting at Council Chambers, City Hall, 300 West LaPorte
Avenue, Fort Collins, Colorado, on Tuesday, the 3rd day of March,
1992, at the hour of 6: 30 p.m.
The following persons were present:
Council Members: Susan E. Kirkpatrick, Mayor
Ann Azari, Mayor Pro Tem
Dave Edwards
Cathy Fromme
Gerry Horak
Loren R . Maxey
Bob Winokur
City Manager: Steven C. Burkett
Financial Officer: Alan J. Krcmarik
City Clerk: Wanda M. Krajicek
City Attorney: Stephen J. Roy
The following persons were absent:
None
The Mayor informed the Council that Ordinance No. 31,
1992, had been duly published in The Coloradoan, a newspaper of
general circulation published in the City, in its issue of
February 23, 1992 .
Council Member Fromme then moved that consideration on
second reading of Ordinance No. 31, 1992, be deferred until the
regular meeting of the Council on March 17, 1992 .
36
Council Member Azari seconded the motion.
The question being upon the deferment of consideration
on second reading of Ordinance No. 31, 1992, the roll was called
with the following result:
Council Members voting "AYE": Susan E. Kirkpatrick
Ann Azari
Dave Edwards
Cathy Fromme
Gerry Horak
Loren R . Maxey
Bob Winokur
Council Members voting "NAY": None
The Mayor declared that, a majority of the Council
Members present having voted in favor thereof, the motion was
carried and consideration on second reading of Ordinance No. 31,
1992, duly deferred until the regular meeting of the Council on
March 17, 1992.
After consideration of other business to come before the
Council the meeting was adjourned.
yor
City of Fort Collins, Colorado
'CITY)
(SEAL)
ATTEST:
City Clerk
City of Fort Collins, Colorado
a
37
STATE OF COLORADO )
COUNTY OF LARIMER ) ss.
CITY OF FORT COLLINS )
The Council of the City of Fort Collins, Colorado, held
a regular meeting at Council Chambers, City Hall, 300 West LaPorte
Avenue, Fort Collins, Colorado, on Tuesday, the 17th day of March,
1992 , at the hour of 6:30 p.m.
The following persons were present:
Council Members: Ann Azari, Mayor Pro Tem
Dave Edwards
Cathy Fromme
Gerry Horak
Loren R . Maxey
City Manager: Steven C. Burkett
Financial Officer: Alan J. Krcmarik
City Clerk: Wanda M. Krajicek
City Attorney: Stephen J. Roy
The following persons were absent:
Susan E. Kirkpatrick, Mayor
Bob Winokur
Council Member Edwards moved that consideration on second
reading of Ordinance No. 31, 1992 , be deferred until the regular
meeting of the Council on April 7, 1992 .
:d
38
Council Member Fromme seconded the motion.
The question being upon the deferment of consideration
on second reading of Ordinance No. 31, 1992, the roll was called
with the following result:
Council Members voting "AYE": Ann Azari
Dave Edwards
Cathy Fromme
Gerry Horak
Loren R. Maxey
Council Members voting "NAY": None
The Mayor Pro Tem declared that, a majority of the
Council Members present having voted in favor thereof, the motion
was carried and consideration on second reading of Ordinance
No. 31, 1992, duly deferred until the regular meeting of the
Council on April 7, 1992.
After consideration of other business to come before the
Council the meeting was adjourned.
Mayor Pro Tem
(CITY) City of Fort Collins, Colorado
(SEAL)
ATTEST:
AUuL 2 1 - o
City Clerk
City of Fort Collins, Colorado
r
39
STATE OF COLORADO )
COUNTY OF LARIMER j ss.
CITY OF FORT COLLINS )
The Council of the City of Fort Collins, Colorado, held
a regular meeting at Council Chambers, City Hall, 300 West LaPorte
Avenue, Fort Collins, Colorado, on Tuesday, the 7th day of April,
1992, at the hour of 6:30 p.m.
The following persons were present:
Council Members: Susan E. Kirkpatrick, Mayor
Ann Azari, Mayor Pro Tem
Dave Edwards
Cathy Fromme
Gerry Horak
Loren R. Maxey
City Manager: Steven C. Burkett
Financial Officer: Alan J. Krcmarik
City Clerk: Wanda M. Krajicek
City Attorney: Stephen J. Roy
The following persons were absent:
Bob Winokur
Council Member Azari moved that consideration on second
reading of Ordinance No. 31, 1992, be deferred until the regular
meeting of the Council on April 21, 1992 .
40
Council Member Edwards secone,d the motion.
The question being upon the deferment of consideration
on second reading of Ordinance No. 31, 1992, the roll was called
with the following result:
Council Members voting "AYE": Susan E. Kirkpatrick
Ann Azari
Dave Edwards
Cathy Fromme
Gerry Horak
Loren R . Maxey
Council Members voting "NAY": None
The Mayor declared that, a majority of the Council
Members present having voted in favor thereof, the motion was
carried and consideration on second reading of Ordinance No. 31,
1992, duly deferred until the regular meeting of the Council on
April 21, 1992.
After consideration of other business to come before the
Council the meeting was adjourned.
Mayor
(CITY) City of Fort Collins, Colorado
(SEAL)
ATTEST:
City Clerk
City of Fort Collins, Colorado
41
STATE OF COLORADO )
COUNTY OF LARIMER ) ss.
CITY OF FORT COLLINS )
The Council of the City of Fort Collins, Colorado, held
a regular meeting at Council Chambers, City Hall, 300 West LaPorte
Avenue, Fort Collins, Colorado, on Tuesday, the 21st day of April,
1992, at the hour of 6: 30 p.m.
The following persons were present:
Council Members: Susan E. Kirkpatrick, Mayor
Ann Azari, Mayor Pro Tem
Dave Edwards
Cathy Fromme
Gerry Horak
Loren R . Maxey
Bob Winokur
City Manager: Steven C. Burkett
Financial Officer: Alan J. Krcmarik
City Clerk: Wanda M. Krajicek
City Attorney: Stephen J. Roy
The following persons were absent:
None
Council Member Edwards moved that consideration on second
reading of Ordinance No. 31, 1992, be deferred until the regular
meeting of the Council on May 5, 1992.
42
Council Member Azari seconded the motion.
The question being upon the deferment of consideration
on second reading of Ordinance No. 31, 1992, the roll was called
with the following result:
Council Members voting "AYE": Susan E. Kirkpatrick
Ann Azari
Dave Edwards
Cathy Fromme
Gerry Horak
Loren R. Maxey
Bob Winkour
Council Members voting "NAY": None
The Mayor declared that, a majority of the Council
Members present having voted in favor thereof, the motion was
carried and consideration on second reading of Ordinance No. 31,
1992, duly deferred until the regular meeting of the Council on
May 5, 1992.
After consideration of other business to come before the
Council the meeting was adjourned.
Mayor
(CITY) City of Fort Collins, Colorado
(SEAL)
ATTEST: (\�
City Clerk
City of Fort Collins, Colorado
'6
43
STATE OF COLORADO )
COUNTY OF LARIMER ) ss.
CITY OF FORT COLLINS )
The Council of the City of Fort Collins, Colorado, held
a regular meeting at Council Chambers, City Hall, 300 West LaPorte
Avenue, Fort Collins, Colorado, on Tuesday, the 5th day of May,
1992, at the hour of 6:30 p.m.
The following persons were present:
Council Members: Susan E. Kirkpatrick, Mayor
Ann Azari, Mayor Pro Tem
Dave Edwards
Cathy Fromme
Gerry Horak
Loren R. Maxey
Bob Winokur
City Manager: Steven C. Burkett
Financial Officer: Alan J. Krcmarik
City Clerk: Wanda M. Krajicek
City Attorney: Stephen J. Roy
The following persons were absent:
None
Council Member Winokur moved that Ordinance No. 31, 1992,
be amended. The following Ordinance with amendments was then read
by its title, copies of the full Ordinance with amendments,
excepting only those read in public at the meeting, having been
available in the office of the City Clerk at least forty-eight (48)
hours prior to the time the Ordinance was considered for amendment
for each Council Member and for inspection and copying by the
general public:
44
ORDINANCE NO. 31, 1992
AN ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF FORT
COLLINS, COLORADO, GENERAL OBLIGATION WATER REFUNDING
BONDS, SERIES 1992B, DATED MAY 1, 1992, IN THE AGGREGATE
PRINCIPAL AMOUNT OF $25,440, 000, FOR THE PURPOSE OF
REFUNDING, PAYING AND DISCHARGING CERTAIN OUTSTANDING
GENERAL OBLIGATION WATER REFUNDING AND IMPROVEMENT BONDS
OF THE CITY; AND PROVIDING FOR THE LEVY OF AD VALOREM
TAXES AND PLEDGING THE NET REVENUES DERIVED FROM THE
OPERATION OF THE WATER SYSTEM TO PAY THE PRINCIPAL OF AND
INTEREST ON THE BONDS.
WHEREAS, the City of Fort Collins, Colorado (the "City") ,
has heretofore issued and sold its General Obligation Water
Refunding and Improvement Bonds, Series 1986, dated August 1, 1986,
in the original aggregate principal amount of $33, 030, 000 (the
"Prior Bonds") ; and
WHEREAS, there is outstanding of the Prior Bonds the
aggregate principal amount of $28,500, 000, maturing on December 1
in the following years in the following aggregate principal amounts
and bearing interest at the following per annum interest rates:
Per Annum
Years Principal Amounts Interest Rates
1992 $1, 080, 000 6.20%
1993 1, 160,000 6.40
1994 1, 220,000 6. 60
1995 1, 315, 000 6.75
1996 1, 385, 000 6. 90
1997 1,485,000 7. 00
1998 1,875, 000 7. 10
1999 1,950, 000 7.20
2000 2, 045, 000 7.30
2001 2, 140, 000 7. 35
2002 2,250,000 7.40
2003 1, 865, 000 7.40
2004 2, 000, 000 7.40
2009 6,730,000 7.50
and
WHEREAS, Prior Bonds maturing in the years 1992 through
1995 are not subject to optional redemption prior to their
respective maturity dates, and Prior Bonds maturing in the year
1996 and thereafter are subject to optional redemption prior to
their respective maturity dates, in whole or in part in inverse
order of maturity and by lot within a maturity, on December 1,
45
1995, and on any interest payment date thereafter at a price equal
to the principal amount of each Prior Bond so redeemed plus accrued
interest thereon to the redemption date plus a premium expressed
as a percentage of the principal amount of each Prior Bond so
redeemed, depending on the redemption date, as follows:
Redemption Date Premium
December 1, 1995 and June 1, 1996 2 .5%
December 1, 1996 and June 1, 1997 2.0
December 1, 1997 and June 1, 1998 1.5
December 1, 1998 and June 1, 1999 1.0
December 1, 1999 and June 1, 2000 0.5
December 1, 2000 and Thereafter None
and
WHEREAS, the City desires to refund, pay and discharge
the Prior Bonds maturing in the year 1996 and thereafter (the
"Refunded Bonds") ; and
WHEREAS, pursuant to Colorado Constitution art. XI, §6
and art. XX, $6, Art. V, Sections 19.2 and 19.4 of the Charter of
the City and part 1 of article 56 of title 11, Colorado Revised
Statutes, as amended (the "Act") , the Council (the "Council") of
the City has determined to issue City of Fort Collins, Colorado,
General Obligation Water Refunding Bonds, Series 1992B, dated
May 1, 1992, in the aggregate principal amount of $25,440, 000 (the
"Bonds") for the purpose of refunding, paying and discharging the
Refunded Bonds in order to reduce the net effective interest rate;
reduce the total interest payable; reduce the total principal and
interest payable or the principal and interest payable in any
particular year or years, or effect other economies; or any
combination of the foregoing; and
WHEREAS, a proposal for the purchase of the Bonds on
terms favorable to the City, together with the disclosures,
comparisons, and other information required by the Act, has been
received from Piper Jaffray Inc. (the "Purchaser") , and the
Financial Officer of the City has recommended that said proposal
be accepted by the Council; and
WHEREAS, there have been filed with the City Clerk the
forms of a Bond Purchase Agreement, dated May 1, 1992 (the "Bond
Purchase Agreement") , between the City and the Purchaser, an Escrow
Agreement, dated as of May 1, 1992 (the "Escrow Agreement") ,
between the City and Colorado National Bank (the "Escrow Bank") ,
a Letter of Representations, dated as of May 1, 1992 (the "Letter
of Representations") , from the City to The Depository Trust
Company, a limited purpose trust company organized under the laws
46
of the State of New York, as securities depository for the Bonds
(the "Securities Depository") , and the Preliminary official
Statement, dated February 21, 1992 (the "Preliminary Official
Statement") relating to the Bonds.
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS, COLORADO, AS FOLLOWS:
1. Award of Contract: Execution of Bond Purchase
Agreement: Approval of Preliminary Official Statement. The
contract for the purchase of the Bonds is hereby awarded to the
Purchaser at the price specified in the Bond Purchase Agreement and
upon the terms set forth in this ordinance (this "Ordinance") .
Pursuant to Resolution No. 92-42 the City Manager has executed the
Bond Purchase Agreement on behalf of the City. The Council hereby
approves the Preliminary Official Statement and ratifies the use
and distribution thereof by the Purchaser in marketing the Bonds.
2. Authorization and Description. For the purpose of
refunding, paying and discharging the Refunded Bonds, the City
shall issue the Bonds pursuant to Colorado Constitution art. XI,
§6 and art. XX, $6, Art. V, Sections 19.2 and 19.4 of the Charter
of the City and the Act.
The Bonds shall be issued in fully registered form and
shall initially be registered in the name of the Securities
Depository or a nominee therefor. Purchases by beneficial owners
of the Bonds ("Beneficial Owners") shall be made in book-entry form
in the principal amount of $5,000 or any integral multiple thereof.
The Beneficial Owners shall not receive certificates evidencing
their interests in the Bonds. No Bond shall be issued in any
denomination larger than the aggregate principal amount maturing
on the maturity date of such Bond, and no Bond shall be made
payable on more than one maturity date. The Bonds shall be
initially issued so that a single Bond shall evidence the
obligation of the City to pay all principal due on each of the
maturity dates set forth herein.
Pursuant to the recommendations of the Committee on
Uniform Security Identification Procedures, CUSIP numbers may be
printed on the Bonds. 6
The Bonds shall mature on December 1 in the following
years in the following aggregate principal amounts and shall bear
interest from May 1, 1992, or the interest payment dates to which
interest has been paid next preceding their respective dates,
whichever is later, to their respective maturity dates, except if
redeemed prior thereto, at the following per annum interest rates:
47
Principal Per Annum
Years Amounts Interest Rates
1992 $ 45,000 2. 90%
1993 195,000 3.75
1994 200,000 4. 30
1995 215,000 4.80
1996 1,610,000 5. 10
1997 1, 700, 000 5.30
1998 2,055,000 5.60
1999 2, 130,000 5.75
2000 2, 145,000 5.90
2001 2,220, 000 6. 00
2002 2,305, 000 6. 00
2003 1,910, 000 6. 10
2004 2,025, 000 6.20
2005 2, 150, 000 6. 30
2006 2,290, 000 6.40
2009 2,245, 000 6.40
Said interest shall be payable on December 1, 1992, and
semiannually thereafter on the first day of June and the first day
of December of each year. If upon presentation at maturity the
principal of any Bond is not paid as provided herein, interest
shall continue thereon at the same interest rate until the
principal thereof is paid in full.
3. Net Effective Interest Rate. The maximum net
effective interest rate for the Bonds shall be 15% per annum. The
actual net effective interest rate for the Bonds is 6. 1588875% per
annum.
4. Nature of Obligation. The Bonds shall be general
obligations of the City and shall be payable from general ad
valorem taxes and water revenues as provided herein.
5. Payment of Principal. Interest and Premium. The
principal of, interest on, and any premium due in connection with
the redemption of the Bonds shall be payable in lawful money of the
United States of America to the registered owners of the Bonds by
the Financial officer of the City, as paying agent (the "Paying
Agent") . The principal and the final installment of interest shall
be payable to the registered owner of each Bond upon presentation
and surrender thereof at maturity or upon prior redemption by check
or draft mailed to the registered owner at the address appearing
on the registration books of the City maintained by the Financial
Officer of the City, as registrar (the "Registrar") , or by wire
transfer to such bank or other depository as the registered owner
shall designate in writing to the Paying Agent. Except as
hereinbefore and hereinafter provided, the interest shall be
48
payable to the registered owner of each Bond determined as of the
close of business on the fifteenth day of the calendar month next
preceding the interest payment date (the "Regular Record Date") ,
irrespective of any transfer of ownership of the Bond subsequent
to the Regular Record Date and prior to such interest payment date,
by check or draft or wire transfer directed to such registered
owner as aforesaid. Any interest not paid when due and any
interest accruing after maturity shall be payable to the registered
owner of each Bond entitled to receive such interest determined as
of the close of business on a date fixed by the Paying Agent for
such purpose (the "Special Record Date") , irrespective of any
transfer of ownership of the Bond subsequent to the Special Record
Date and prior to the date fixed by the Paying Agent for the
payment of such interest, by check or draft or wire transfer
directed to such registered owner as aforesaid. Notice of the
Special Record Date and of the date fixed for the payment of such
interest shall be given by sending a copy thereof by certified or
registered first-class postage prepaid mail, at least fifteen (15)
days prior to the Special Record Date, to the registered owner of
each Bond upon which interest will be paid determined as of the
close of business on the day preceding such mailing at the address
appearing on the registration books of the City. Any premium shall
be payable to the registered owner of each Bond redeemed upon
presentation and surrender thereof upon prior redemption by check
or draft or wire transfer directed to such registered owner as
aforesaid. If the date for making or giving any payment,
determination or notice described herein is a Saturday, Sunday,
legal holiday or any other day on which the office of the Paying
Agent or Registrar is authorized or required by law to remain
closed, such payment, determination or notice shall be made or
given on the next succeeding day which is not a Saturday, Sunday,
legal holiday or other day on which the office of the Paying Agent
or Registrar is authorized or required by law to remain closed.
So long as the registered owner of any Bond is the
Securities Depository or a nominee therefor, the Securities
Depository shall disburse any payments received, through
participating underwriters, securities brokers or dealers, banks,
trust companies, closing corporations or other persons or entities
for which the Securities Depository holds Bonds ("Participants")
or otherwise, to the Beneficial Owners. °
Neither the City nor the Paying Agent shall have any
responsibility or obligation for the payment to any Participant,
any Beneficial Owner or any other person or entity (except a
registered owner of Bonds) of the principal of, interest on or any
premium due in connection with the redemption of the Bonds.
Notwithstanding any other provision of this Ordinance,
so long as any Bond is registered in the name of Cede & Co. , as
49
nominee for the Securities Depository, all payments with respect
to principal of, interest on and any premium due in connection with
the redemption of such Bond shall be made in the manner provided
in the Letter of Representations.
6. Redemption. Bonds maturing in the years 1992
through 2002 shall not be subject to optional redemption prior to
their respective maturity dates. Bonds maturing in the year 2003
and thereafter shall be subject to optional redemption prior to
their respective maturity dates, in whole or in part in inverse
order of maturity and by lot within a maturity, on December 1,
2002, and on any interest payment date thereafter at a price equal
to the principal amount of each Bond so redeemed plus accrued
interest thereon to the redemption date plus a premium expressed
as a percentage of the principal amount of each Bond so redeemed,
depending on the redemption date, as follows:
Redemption Dates Premiums
December 1, 2002, and June 1, 2003 1. 0%
December 1, 2003, and June 1, 2004 0.5
December 1, 2004, and Thereafter None
Bonds maturing in the year 2009 shall also be subject to
mandatory sinking fund redemption prior to their maturity date, by
lot, on the dates specified below at a price equal to the principal
amount of each Bond so redeemed plus accrued interest thereon to
the redemption date. Such Bonds shall be redeemed on December 1
in the following years in the following aggregate principal
amounts:
Years Principal Amounts
2007 $ 700, 000
2008 745, 000
2009 800, 000
Bonds which are redeemable prior to their respective
maturity dates may be redeemed in part if issued in denominations
which are integral multiples of $5, 000. Such Bonds shall be
treated as representing a corresponding number of separate Bonds
in the denomination of $5, 000 each. Any such Bond to be redeemed
in part shall be surrendered for partial redemption in the manner
hereinafter provided for transfers of ownership. Upon payment of
the redemption price of any such Bond redeemed in part the
registered owner thereof shall receive a new Bond or Bonds of
authorized denominations in aggregate principal amount equal to the
unredeemed portion of the Bond surrendered.
50
Unless waived by the registered owners of any Bonds to
be redeemed, notice of redemption shall be given by the Paying
Agent in the name of the City by sending a copy thereof by
certified or registered first-class postage prepaid mail, not less
than thirty (30) nor more than sixty (60) days prior to the
redemption date, to the registered owner of each of the Bonds being
redeemed determined as of the close of business on the date
preceding the first mailing of such notice at the address appearing
on the registration books of the City. Such notice shall specify
the number or numbers of the Bonds to be redeemed, whether in whole
or in part, the principal amounts thereof and the date fixed for
redemption and shall further state that on the redemption date
there will be due and payable upon each Bond or part thereof so to
' be redeemed the principal amount or part thereof plus accrued
interest thereon to the redemption date plus any premium due and
that from and after such date interest will cease to accrue. In
addition, the Paying Agent is hereby authorized to give such other
or further notice as may be required by law and to comply with any
operational procedures and requirements of the Securities
Depository relating to redemption of Bonds and notice thereof.
Failure to mail any notice as aforesaid or any defect in any notice
so mailed with respect to any Bond shall not affect the validity
of the redemption proceedings with respect to any other Bond. Any
Bonds redeemed prior to their respective maturity dates by call for
prior redemption or otherwise shall not be reissued and shall be
cancelled the same as Bonds paid at or after maturity.
Notwithstanding any other provision of this Ordinance,
so long as any Bond is registered in the name of Cede & Co. , as
nominee for the Securities Depository, all notices with respect to
the Bonds shall be given in the manner provided in the Letter of
Representations.
7. Execution and Authentication. The Bonds shall be
executed by and on behalf of the City with the facsimile or manual
signature of the Mayor, shall bear a facsimile or manual impression
of the seal of the City, shall be attested with the facsimile or
manual signature of the City Clerk, shall be countersigned with the
facsimile or manual signature of the Financial Officer of the City,
and shall be authenticated with the manual signature of the
Registrar. Should any officer whose facsimile or manual signature
appears on the Bonds cease to be such officer before issuance and
delivery of any Bond, such facsimile or manual signature shall
nevertheless be valid and sufficient for all purposes. No Bond
shall be valid or become obligatory for any purpose or be entitled
to any security or benefit under this Ordinance unless and until
the certificate of authentication on such Bond shall have been duly
executed by the Registrar, and such executed certificate upon any
such Bond shall be conclusive evidence that such Bond has been
authenticated and delivered under this Ordinance.
51
of Bonds. No transfer of any Bond shall be effective until entered
on the registration books of the City. In the case of every
transfer or exchange, the Transfer Agent shall deliver to the new
registered owner a new Bond or Bonds of the same aggregate
principal amount, maturing in the same year, and bearing interest
at the same per annum interest rate as the Bond or Bonds
surrendered. Such Bond or Bonds shall be dated as of their date
of authentication. New Bonds delivered upon any transfer or
exchange shall be valid obligations of the City, evidencing the
same debt as the Bonds surrendered, shall be secured by this
Ordinance, and shall be entitled to all of the security and
benefits hereof to the same extent as the Bonds surrendered. The
City may deem and treat the person or entity in whose name any Bond
is last registered upon the books of the City as the absolute owner
thereof for the purpose of receiving payment of the principal of,
interest on, and any premium due in connection with the redemption
of such Bond and for all other purposes, and all such payments so
made to such person or entity or upon his, her or its order shall
be valid and effective to satisfy and discharge the liability of
the City upon such Bond to the extent of the sum or sums so paid,
and the City shall not be affected by any notice to the contrary.
Neither the City nor the Transfer Agent shall have any
responsibility or obligation with respect to the accuracy of the
records the Securities Depository or its Participants regarding any
ownership interest in the Bonds or transfers thereof.
The City may remove the Securities Depository and the
Securities Depository may resign by giving sixty (60) days' written
notice to the other of such removal or resignation. Additionally,
the Securities Depository shall be removed sixty (60) days after
receipt by the City of written notice from the Securities
Depository to the effect that the Securities Depository has
received written notice from Participants having interests, as
shown in the records of the Securities Depository, in an aggregate
principal amount of not less than 50% of the aggregate principal
amount of the then outstanding Bonds to the effect that the
Securities Depository is unable or unwilling to discharge its
responsibilities or a continuation of the requirement that all of
the outstanding Bonds be registered in the name of the Securities
Depository or a nominee therefor is not in the best interests of
the Beneficial Owners. Upon the removal or resignation of the
Securities Depository, the Securities Depository shall take such
action as may be necessary to assure the orderly transfer of the
computerized book-entry system with respect to the Bonds to a
successor securities depository or, if no successor securities
depository is appointed as herein provided, the transfer of the
Bonds in certificate form to the Beneficial Owners or their
designees. Upon the giving of notice by the City of the removal
of the Securities Depository, the giving of notice by the
53
Securities Depository of its resignation or the receipt by the City
of notice with respect to the written notice of Participants
referred to herein, the City may, within sixty (60) days after the
giving of such notice, appoint a successor securities depository
upon such terms and conditions as the City shall impose. Any such
successor securities depository shall at all times be a registered
clearing agency under the Securities and Exchange Act of 1934, as
amended, or other applicable statute or regulation, and in good
standing thereunder. if the City fails to appoint a successor
securities depository within such time period, the Bonds shall no
longer be restricted to being registered in the name of the
Securities Depository or a nominee therefor, but may be registered
in whatever name or names registered owners transferring or
exchanging Bonds shall designate.
9. Replacement of Bonds. if any Bond shall have been
lost, destroyed or wrongfully taken, the City shall provide for
the replacement thereof in the manner set forth and upon receipt
of the evidence, indemnity bond and reimbursement for expenses
provided in Section 8-41 of the City Code.
10. Recitals in Bonds. Each Bond shall recite that it
is issued under the authority of the Constitution of the State of
Colorado, the Charter of the City, the Act and this Ordinance. The
Act provides that such recital conclusively imparts full compliance
with all of the provisions and limitations thereof and that the
Bonds containing such recital are incontestable for any cause
whatsoever after their delivery for value.
11. Form of Bonds. The Bonds shall be in substantially
the following form:
54
(Form of Bond]
(Text of Face)
UNITED STATES OF AMERICA
STATE OF COLORADO COUNTY OF LARIMER
CITY OF FORT COLLINS
GENERAL OBLIGATION WATER REFUNDING BOND
SERIES 1992B
No. R- $
Interest Maturity Original
Rate Date Date CUSIP
December 1, May 1, 1992
REGISTERED OWNER: Cede & Co.
PRINCIPAL SUM:
The City of Fort Collins, in the County of Larimer and
State of Colorado, for value received, hereby acknowledges itself
indebted and promises to pay to the Registered Owner (specified
above) , or registered assigns, the Principal Sum (specified above) ,
in lawful money of the United States of America, on the Maturity
Date (specified above) , with interest thereon from the Original
Date (specified above) , or the interest payment date to which
interest has been paid next preceding the date hereof, whichever
is later, to the Maturity Date, except if redeemed prior thereto,
at the per annum Interest Rate (specified above) , payable
semiannually on the first day of June and the first day of December
of each year, commencing on December 1, 1992, or the first such
date after the date hereof, whichever is later, in the manner
provided herein. If upon presentation at maturity payment of the
Principal Sum is not made as provided herein, interest thereon
continues at the Interest Rate until the Principal Sum is paid in
full.
55
Bonds maturing in the years 1992 through 2002 are not
subject to optional redemption prior to their respective maturity
dates. Bonds maturing in the year 2003 and thereafter are subject
to optional redemption prior to their respective maturity dates,
in whole or in part in inverse order of maturity and by lot within
a maturity, on December 1, 2002, and on any interest payment date
thereafter at a price equal to the principal amount of each Bond
so redeemed plus accrued interest thereon to the redemption date
plus a premium expressed as a percentage of the principal amount
of each Bond so redeemed., depending on the redemption date, as
follows:
Redemption Dates Premiums
December 1, 2002 , and June 1, 2003 1. 0%
December 1, 2003, and June 1, 2004 0.5
December 1, 2004, and Thereafter None
Bonds maturing in the year 2009 are also subject to
mandatory sinking fund redemption prior to their maturity date, by
lot, on the dates specified below at a price equal to the principal
amount of each Bond so redeemed plus accrued interest thereon to
the redemption date. Such Bonds are to be redeemed on December 1
in the following years in the following aggregate principal
amounts:
Years Principal Amounts
2007 $ 700, 000
2008 745,000
2009 800, 000
Bonds which are redeemable prior to their respective
maturity dates may be redeemed in part if issued in denominations
which are integral multiples of $5, 000. In such case the Bond is
to be surrendered in the manner provided for transfers of
ownership. Upon payment of the redemption price the Registered
Owner is to receive a new Bond or Bonds of authorized denominations
in aggregate principal amount equal to the unredeemed portion of
the Bond surrendered.
Unless waived by the registered owners of any Bonds to 6
be redeemed, notice of redemption of any Bonds is to be given by
the paying agent in the name of the City by sending a copy of such
notice by certified or registered first-class postage prepaid mail,
not less than thirty (30) nor more than sixty (60) days prior to
the redemption date, to the registered owner of each of the Bonds
being redeemed determined as of the close of business on the day
preceding the first mailing of such notice at the address appearing
on the registration books of the City. Such notice is to specify
56
the number or numbers of the Bonds to be redeemed, whether in whole
or in part, the principal amounts thereof and the date fixed for
redemption and 'is further to state that on the redemption date
there will be due and payable upon each Bond or part thereof so to
be redeemed the principal amount or part thereof plus accrued
interest thereon to the redemption date plus any premium due and
that from and after such date interest will cease to accrue. In
addition, the paying agent is authorized to give such other or
further notice as may be required by law and to comply with any
operational procedures and requirements of The Depository Trust
Company relating to redemption of Bonds and notice thereof.
Failure to mail any notice as aforesaid or any defect in any notice
so mailed with respect to any Bond does not affect the validity of
the redemption proceedings with respect to any other Bond.
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF
THIS BOND SET FORTH ON THE REVERSE HEREOF.
The full faith and credit of the City is hereby pledged
for the punctual payment of the principal of and interest on this
Bond.
IN WITNESS WHEREOF, the City has caused this Bond to be
executed in its name and on its behalf with the facsimile or manual
signature of the Mayor of the City, to be sealed with a facsimile
or manual impression of the seal of the City, to be attested with
the facsimile or manual signature of the City Clerk of the City,
and to be countersigned with the facsimile or manual signature of
the Financial Officer of the City.
CITY OF FORT COLLINS, COLORADO
(CITY) By: (Facsimile or Manual
(SEAT•) Signature)
Mayor
ATTEST:
6
(Facsimile or Manual Signature)
City Clerk
57
Countersigned:
(Facsimile or Manual Sianature)
Financial Officer
58
CERTIFICATE OF AUTHENTICATION
This Bond is issued pursuant to the Ordinance herein described.
Printed on the reverse hereof is the complete text of the opinion
of bond counsel, Ballard Spahr Andrews & Ingersoll, Denver,
Colorado, a signed copy of which, dated the date of the first
delivery of the Bonds herein described, is on file with the
undersigned.
FINANCIAL OFFICER OF THE CITY OF FORT COLLINS, COLORADO
as registrar
By: (Manual Signature)
Authorized Signatory
Dated:
6
59
ABBREVIATIONS
The following abbreviations, when used in the inscription
on the face of this Bond, shall be construed as though they were
written out in full according to applicable laws or regulations.
TEN COM - as tenants in common
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with the right of survivorship
and not as tenants in common
UNIF TRANS MIN ACT Custodian
(Cust) (Minor)
under Uniform Transfers to Minors Act
(State)
Additional abbreviations may also be used
though not on the above list.
60
(Text of Reverse)
The principal of, interest on, and any premium due in
connection with the redemption of this Bond are payable to the
Registered Owner by the Financial Officer of the City, as paying
agent. The principal and the final installment of interest are
payable to the Registered Owner upon presentation and surrender of
this Bond at maturity or upon prior redemption by check or draft
mailed to the Registered Owner at the address appearing on the
registration books of the City maintained by the Financial Officer
of the City, as registrar, or by wire transfer to such bank or
other depository as the Registered Owner shall designate in writing
to the paying agent. Except as hereinbefore or hereinafter
provided, the interest is payable to the Registered Owner
determined as of the close of business on the regular record date,
which is to be the fifteenth day of the calendar month next
preceding the interest payment date, irrespective of any transfer
of ownership hereof subsequent to the regular record date and prior
to such interest payment date, by check or draft or wire transfer
directed to the Registered Owner as aforesaid. Any interest hereon
not paid when due and any interest hereon accruing after maturity
is payable to the Registered Owner determined as of the close of
business on the special record date, which is to be fixed by the
paying agent for such purpose, irrespective of any transfer of
ownership of this Bond subsequent to such special record date and
prior to the date fixed by the paying agent for the payment of such
interest, by check or draft or wire transfer directed to the
Registered Owner as aforesaid. Notice of the special record date
and of the date fixed for the payment of such interest is to be
given by sending a copy thereof by certified or registered
first-class postage prepaid mail, at least fifteen (15) days prior
to the special record date, to the registered owner of each Bond
upon which interest will be paid determined as of the close of
business on the day preceding such mailing at the address appearing
on the registration books of the City. Any premium is payable to
the Registered Owner upon presentation and surrender of this Bond
upon prior redemption by check or draft or wire transfer directed
to the Registered Owner as aforesaid. If the date for making or
giving any payment, determination or notice described herein is a
Saturday, Sunday, legal holiday or any other day on which the
office of the paying agent or registrar is authorized or required 4
by law to remain closed, such payment, determination or notice is
to be made or given on the next succeeding day which is not a
Saturday, Sunday, legal holiday or other day on which the office
of the paying agent or registrar is authorized or required by law
to remain closed.
So long as the Registered Owner is the securities
depository or a nominee therefor, the securities depository is to
61
disburse any payments received, through its participants or
otherwise, to the beneficial owner or owners hereof.
Neither the City nor the paying agent has any
responsibility or obligation for the payment to any participant,
any beneficial owner hereof or any other person or entity (except
the Registered Owner) of the principal of, interest on or any
premium due in connection with the redemption of this Bond.
Neither the City nor the registrar has any responsibility
or obligation with respect to the accuracy of the records of the
securities depository or a nominee therefor or any participant with
respect to any ownership interest in the Bonds or the delivery to
any participant, beneficial owner or any other person or entity
(except the Registered Owner) of any notice with respect to the
Bonds.
This Bond is issued by the City for the purpose of
refunding, paying and discharging certain outstanding general
obligation water refunding and improvement bonds of the City
pursuant to, by virtue of, and in full conformity with the
Constitution of the State of Colorado, the Charter of the City,
part 1 of article 56 of title 11, Colorado Revised Statutes, as
amended, and all other laws of the State of Colorado thereunto
enabling, and pursuant to an ordinance of the City duly adopted
prior to the issuance of this Bond. The foregoing recital
conclusively imparts full compliance with all of the provisions and
limitations of the above-cited statute, and said statute provides
that this Bond is incontestable for any cause whatsoever after its
delivery for value.
It is hereby recited, certified and warranted that the
total indebtedness of the City, including that of this Bond, does
not exceed any constitutional, charter or statutory limitation of
the State of Colorado or of the City; that provision has been made
for the levy and collection of general (ad valorem) taxes on all
the taxable property within the City and for the pledge of the net
revenues derived from the operation of the water system of the City
in amounts sufficient to pay the principal of and interest on this
Bond as the same become due; and that this Bond constitutes a first
lien (but not necessarily an exclusive first lien) on said net
revenues.
Reference is hereby made to the ordinance of the City
authorizing the issuance of this Bond, and to any and all
modifications thereof and amendments thereto, for a description of
the provisions, terms and conditions upon which this Bond is issued
and secured, including, without limitation, definition of terms
used herein, the nature and extent of the security for this Bond,
provisions with respect to the application of the proceeds of this
62
Bond, the rights, duties and obligations of the City and the
members of its Council, and the rights of the Registered Owner.
This Bond is transferable only upon the registration
books of the City by the Financial Officer of the City, as transfer
agent, at the request of the Registered Owner or his, her or its
duly authorized attorney-in-fact or legal representative, upon
surrender hereof together with a written instrument of transfer
duly executed by the Registered Owner or his, her or its duly
authorized attorney-in-fact or legal representative with guaranty
of signature satisfactory to the transfer agent, containing written
instructions as to the details of the transfer, along with the
social security number or federal employer identification number
of the transferee and, if the transferee is a trust, the names and
social security numbers of the settlors and beneficiaries of the
trust. The transfer agent is not required to transfer ownership
of this Bond during the fifteen (15) days prior to the first
mailing of any notice of redemption or to transfer ownership of any
Bond selected for redemption on or after the date of such mailing.
The Registered Owner may also exchange this Bond for another Bond
or Bonds of authorized denominations. Transfers and exchanges are
to be made without charge, except that the transfer agent may
require payment of a sum sufficient to defray any tax or other
governmental charge that may hereafter be imposed in connection
with any transfer or exchange of Bonds. No transfer of this Bond
is to be effective until entered on the registration books of the
City. In the case of every transfer or exchange, the transfer
agent is to deliver to the new registered owner a new Bond or Bonds
of the same aggregate principal amount, maturing in the same year,
and bearing interest at the same per annum interest rate as the
Bond or Bonds surrendered. Such Bond or Bonds are to be dated as
of their date of authentication. The City may deem and treat the
person or entity in whose name this Bond is last registered upon
the books of the City as the absolute owner hereof for the purpose
of receiving payment of the principal of, interest on, and any
premium due in connection with the redemption of this Bond and for
all other purposes, and all such payments so made to such person
or entity or upon his, her or its order will be valid and effective
to satisfy and discharge the liability of the City upon this Bond
to the extent of the sum or sums so paid, and the City will not be
affected by any notice to the contrary. °
Neither the City nor the transfer agent has any
responsibility or obligation with respect to the accuracy of the
records of the securities depository or its participants regarding
any ownership interest in the Bonds or transfers thereof.
The City may remove the securities depository and the
securities depository may resign by giving sixty (60) days, written
notice to the other of such removal or resignation. Additionally,
63
the securities depository is to be removed sixty (60) days after
receipt by the City of written notice from the securities
depository to the effect that the securities depository has
received written notice form participants having interests, as
shown in the records of the securities depository, in an aggregate
principal amount of not less than 50% of the aggregate principal
amount of the then outstanding Bonds to the effect that the
securities depository is unable or unwilling to discharge its
responsibilities or a continuation of the requirement that all of
the outstanding Bonds be registered in the name of the securities
depository or a nominee therefor is not in the best interests of
the beneficial owners. Upon the removal or resignation of the
securities depository, the securities depository is to take such
action as may be necessary to assure the orderly transfer of the
computerized book-entry system with respect to the Bonds to a
successor securities depository or, if no successor securities
depository is appointed as herein provided, the transfer of the
Bonds in certificate form to the beneficial owners or their
designees. Upon the giving of notice by the City of the removal
of the securities depository, the giving of notice by the
securities depository of its resignation or the receipt by the City
of notice with respect to the written notice by participants
referred to herein, the City may, within sixty (60) days after the
giving of such notice, appoint a successor securities depository
upon such terms and conditions as the City shall impose. Any such
successor securities depository must at all times be a registered
clearing agency under the Securities and Exchange Act of 1934, as
amended, or other applicable statute or regulation and in good
standing thereunder. If the City fails to appoint a successor
securities depository within such time period, the Bonds are no
longer to be restricted to being registered in the name of the
securities depository or a nominee therefor, but may be registered
in whatever name or names registered owners transferring or
exchanging Bonds shall designate.
64
(Assignment)
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned sells, assigns and
transfers unto
PLEASE INSERT SOCIAL SECURITY OR
OTHER IDENTIFYING NUMBER OF ASSIGNEE
(Name and Address of Assignee)
this Bond and does hereby irrevocably constitute and appoint
or its successors,
to transfer this Bond on the books kept for registration thereof.
Dated:
Signature guaranteed:
(Bank, Trust Company or Firm)
NOTICE: The signature to this
assignment must correspond with
the name of the Registered Owner
as it appears upon the face of
this Bond in every particular 6
without alteration or
enlargement or any change
whatever.
[End of Form of Bond]
65
12. Disposition of Bonds and Proceeds. The Bonds, when
executed, authenticated and registered as provided herein, shall
be delivered by the City to the Purchaser upon receipt of full
payment therefor in accordance with the Bond Purchase Agreement.
Interest accrued on the Bonds from the date thereof to
the delivery date thereof shall be applied to the payment of
interest first due on the Bonds. The original proceeds of the
Bonds, exclusive of accrued interest, shall be used for the
purposes stated herein and for no other purposes, provided,
however, that any portion of the Bond proceeds may be temporarily
invested pending such use, with such temporary investment to be
made consistent with the covenant made in Section 19 hereof.
Neither the Purchaser nor any subsequent owner of the Bonds shall
be in any way responsible for the application of the proceeds of
the Bonds by the City or any of its officers.
13. Escrow Fund. A special fund is hereby created and
designated as the "City of Fort Collins, Colorado, General
Obligation Water Refunding Bonds, Series 1992B, Escrow Fund" (the
"Escrow Fund") . A portion of the original proceeds of the Bonds,
exclusive of accrued interest, together with other funds of the
City, shall be deposited in the Escrow Fund as provided in the
Escrow Agreement. The City shall purchase the bills, certificates
of indebtedness, notes, bonds or similar securities which are
direct obligations of, or the principal and interest of which
obligations are unconditionally guaranteed by, the United States
of America ("Federal Securities") in which the moneys in the Escrow
Fund are to be invested and fund the required cash balance as
provided in the Escrow Agreement and in accordance with the
proposal submitted by the Purchaser. The Escrow Fund shall be
maintained in an amount at the time of the deposit therein, and at
all times subsequently, at least sufficient, together with the
known minimum yield to be derived from the investment of the
deposits therein or any part thereof in Federal Securities, to pay
the principal of, interest on, and any premium due in connection
with the redemption of the Refunded Bonds as the same become due.
Moneys shall be withdrawn by the Escrow Bank from the Escrow Fund
in sufficient amounts and at times to permit the payment of said
amounts. Any moneys remaining in the Escrow Fund after provision
has been made for the payment of said amounts shall be applied to
any lawful purposes of the City as the Council may hereafter
determine. If for any reason the amount in the Escrow Fund shall
at any time be insufficient for the purposes hereinbefore set
forth, the City shall forthwith from the first moneys available
therefor deposit therein such additional moneys as shall be
necessary to permit the payment in full of said amounts.
14. Redemption of Refunded Bonds: Notice of Refunding
and Redemption of Refunded Bonds. The City hereby exercises its
66
option to redeem the Refunded Bonds, prior to their respective
maturity dates, on December 1, 1995, at a price equal to the
principal amount of each Refunded Bond so redeemed plus accrued
interest thereon to the redemption date plus a premium equal to
2.5% of the principal amount of each Refunded Bond so redeemed.
The paying agent for the Prior Bonds is hereby authorized and
directed to give forthwith and again no later than October 31,
1995, notice of refunding and redemption of the Refunded Bonds.
The notice of refunding and redemption of the Refunded Bonds shall
be given by sending a copy of such notice by, certified or
registered first-class postage prepaid mail to Chemical Bank and
to the registered owners of each of the Refunded Bonds. The notice
of refunding and redemption of the Refunded Bonds shall be in
substantially the following form:
6
67
(Form of Notice]
NOTICE OF REFUNDING AND REDEMPTION
OF
CITY OF FORT COLLINS, COLORADO
GENERAL OBLIGATION WATER REFUNDING AND IMPROVEMENT BONDS
SERIES 1986
DATED AUGUST 1, 1986 - $33, 030, 000
NOTICE IS HEREBY GIVEN to the registered owners of all
outstanding City of Fort Collins, Colorado, General Obligation
Water Refunding and Improvement Bonds, Series 1986, dated August 1,
1986, in the original aggregate principal amount of $33,030, 000
maturing in the year 1996 and thereafter (the "Refunded Bonds")
that the City of Fort Collins, Colorado (the "City") , has issued
General Obligation Water Refunding Bonds, Series 1992B, dated
May 1, 1992, in the aggregate principal amount of $25,440, 000, and
deposited a portion of the proceeds thereof, together with other
funds of the City, in escrow with Colorado National Bank, Denver,
Colorado, which proceeds have been invested in bills, certificates
of indebtedness, notes or bonds which are direct obligations of,
or the principal and interest of which obligations are
unconditionally guaranteed by, the United States of America for the
payment of principal of, interest on, and any premium due in
connection with the redemption of the Refunded Bonds as the same
become due.
According to a report pertaining to such escrow prepared
by a firm of certified public accountants licensed to practice in
Colorado, the escrow, including the known minimum yield from such
investments, is fully sufficient at the time of the deposit and at
all times subsequently, to pay the principal of, interest on, and
any premium due in connection with the redemption of the Refunded
Bonds as the same become due.
NOTICE IS FURTHER HEREBY GIVEN that the City has
exercised its option to redeem in whole the Refunded Bonds numbered
, prior to their respective maturity dates, on December 1, c
1995, at a price equal to the principal amount of each Refunded
Bond so redeemed plus accrued interest thereon to the redemption
date plus a premium equal to 2 .5% of the principal amount of each
Refunded Bond so redeemed.
On the redemption date there will become and will be due
and payable upon each Refunded Bond so to be redeemed the principal
amount thereof plus accrued interest thereon to the redemption date
plus a premium equal to 2 .5% of the principal amount thereof, and
from and after the redemption date interest will cease to accrue.
68
Each such Refunded Bond will be redeemed on or after the redemption
date upon presentation and surrender thereof.
DATED this day of , 19_
CITY OF FORT COLLINS, COLORADO
Financial Officer
[End of Form of Notice}
:a
69
15. Water Fund. The remaining portion of the original
proceeds of the Bonds, exclusive of accrued interest, shall be
deposited in the Water Fund of the City (the "Water Fund") . Bond
proceeds so deposited shall be withdrawn and expended for the
purpose of paying the costs of issuing the Bonds. Any Bond
proceeds remaining in the Water Fund after the payment of the costs
of issuing the Bonds shall be applied to any lawful purposes of the
City as the Council may hereafter determine.
16. pledge of Ad Valorem Taxes and Water Revenues. If
required, the interest to become due on the Bonds in 1992 shall be
advanced from any revenues or funds of the City lawfully available
therefor. For the purpose of reimbursing any such advance and also
for the purpose of paying the principal of and interest on the
Bonds as the same become due and payable, the Council shall
annually fix and certify a rate of levy for ad valorem taxes to the
Board of County Commissioners of Larimer County, Colorado, which
taxes, when levied on all of the taxable property in the City in
each year so long as any Bonds remain outstanding, will raise ad
valorem tax revenues sufficient to make such reimbursement and to
pay such Bond principal and interest as the same become due. In
the event any of said levies shall fail to produce an amount
sufficient to pay the principal of and interest on the Bonds
becoming due in the next succeeding year, the deficit shall be made
up in the next levy, and taxes shall be levied until the principal
of and interest on the Bonds shall be fully paid or discharged.
In addition to the provision for tax levies for the
payment of the Bonds, the City hereby irrevocably pledges to pay
the principal of and the interest on the Bonds from the net
revenues of the Water System. The City hereby reserves the right
to secure, without restriction, any water bonds, water refunding
bonds and leases and contracts relating to the Water System
hereafter issued or entered into by the City equally and ratably
with the Bonds. The City also hereby commits itself to fix and
annually to maintain rates, fees, tolls, and charges for water and
services furnished by the Water System which, together with other
moneys legally available therefor, will be sufficient to pay
operation and maintenance expenses of the Water System and the
principal of and interest on all bonds and other obligations of the
City pertaining to the Water System, as they respectively become
due, and for the other payments required by Art. XII, Section 6 of
the Charter of the City. The term "net revenues" as used herein
refers to the gross revenues of the Water System after the payment
of operation and maintenance expenses. The term "operation and
maintenance expenses" as used herein means all current reasonable
and necessary expenses of operating, maintaining and repairing the
Water System, but does not include any allowance for depreciation
or capital replacements and improvements. The term "Water System"
as used herein includes not only the property comprising the Water
70
System of the City at the present time, but all additions and
betterments thereto and improvements and extensions thereto which
may hereafter be acquired, constructed or installed by the City.
It shall be the duty of the Council annually at the time
and in the manner provided by law, if such action shall be
necessary to effectuate the provisions of this Ordinance, to ratify
and carry out the provisions hereof with reference to the levy and
collection of the ad valorem taxes and the imposition,
administration, enforcement and collection of the water rates,
fees, tolls and charges, all as herein specified, and to require
the officers of the City to levy, extend and collect said ad
valorem taxes in the manner provided by law and to impose,
administer, enforce and collect said water rates, fees, tolls and
charges for the purpose of providing funds for the payment of the
operation and maintenance expenses of the Water System and the
payment of the principal of and interest on the Bonds as the same
become due.
17. Use of Water Fund. Interest accrued on the Bonds
from the date thereof to the delivery date thereof and all ad
valorem taxes and water revenues, when collected, shall be
deposited in the Water Fund. From any moneys on deposit in the
Water Fund or, if required, from any other unrestricted fund of
the City, the City shall pay each maturing installment of principal
and interest on the Bonds and any other obligations issued and made
payable from the Water Fund until the Bonds, both principal and
interest, shall be fully paid or discharged. Nothing herein
contained shall be so construed as to prevent the City from
committing and applying any other funds or revenues that may now
or hereafter be in the possession of the City and legally available
for the purpose of payment of the principal of and interest on the
Bonds. The Water Fund shall be maintained as a sinking fund for
the mandatory redemption of Bonds maturing in the years 2009. Any
mandatory sinking fund redemption shall be treated as a maturing
installment of principal for purposes of this Section 17.
18. Excess Investment Earnings Account. There is hereby
created within the Water Fund the City of Fort Collins, Colorado,
General Obligation Water Refunding and Improvement Bonds, Series
1992B, Excess Investment Earnings Account (the "Excess Investment
Earnings Account") , into which the Financial Officer shall
transfer, and from which the Financial Officer shall pay, the
amount of required arbitrage rebate, if any, due to the United
States government under Sections 103 and 148 (f) (2) of the Internal
Revenue Code of 1986, as amended (the "Tax Code") , and regulations
promulgated thereunder. The Financial Officer shall determine such
amounts in the manner required by the Tax Code and related
regulations. Transfer of the required arbitrage rebate amounts
shall be made from the Water Fund, provided, however, that required
71
arbitrage rebate payments shall be made to the United States
government from any legally available funds if there are no moneys
in the Water Fund available for such purpose.
All amounts in the Excess Investment Earnings Account,
including income earned from the investment of moneys therein,
shall be held by the Financial Officer free and clear of any lien
created by this Ordinance, and the Financial Officer shall pay
required arbitrage rebate amounts over to the United States
government from time to time as the Financial Officer shall
determine, provided that the Financial Officer shall so pay over
to the United States of America (a) not less frequently than once
each five years after the date of issuance of the Bonds, an amount
equal to 90% of the required arbitrage rebate amount earned during
such period (and not theretofore paid to the United States
government) and (b) not later than sixty (60) days after the
redemption of the last Bond, 100% of the required arbitrage rebate
amount.
19. Tax Matters. The City shall make no investment or
other use of the proceeds of the Bonds at any time during the term
thereof which will cause the interest on the Bonds to be includible
in gross income under the Tax Code and the regulations promulgated
thereunder and shall comply with all other covenants and
certifications relating to the Tax Code made by it in connection
with the issuance of the Bonds. The foregoing covenant shall
remain in effect notwithstanding the payment in full or defeasance
of the Bonds until the date on which all obligations of the City
in fulfilling the above covenant under the Tax Code have been met.
20. Covenants. The City covenants that so long as any
of the Bonds remain outstanding and unpaid:
a. It will continue to operate and manage the
Water System in an efficient and economical manner and
keep and maintain separate accounts of the receipts and
disbursements thereof in such manner that the revenues
thereof may at all times be readily and accurately
determined.
b. It will not sell or alienate any of the
property constituting all or any part of the Water System
in any manner or to any extent as might reduce the
security provided for the payment of the Bonds, but the
City may sell any portion of such property which shall
have been replaced by other similar property of at least
equal value or which shall cease to be necessary for the
efficient operation of the Water System.
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C. The rates, fees, tolls and charges for all
services rendered by the Water 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 the Water System and the proper and necessary
allowance 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 Water System and the interest thereon.
d. There shall be charged against all purchasers
of service such rates, fees, tolls, and charges as shall
be adequate to meet the requirements of this Ordinance.
e. The City shall cause all rates, fees, tolls and
charges appertaining to the Water System to be collected
as soon as reasonable, shall prescribe and enforce rules
and regulations for the payment thereof and for the
connection with and the disconnection from properties of
the Water System, and shall provide methods of collection
and penalties, including but not limited to denial of
service for non-payment of such rates, fees, tolls and
charges to the end that net revenues of the Water System
shall be adequate to meet the requirements hereof.
f. At regular periods each year it will render
bills for water services furnished. Until paid, all
water rates, fees, tolls and charges shall constitute a
lien on the property served, and the City shall take
whatever action is legally permissible promptly to
enforce and collect delinquent water rates, fees, tolls
and charges and to preserve and enforce said liens.
g. At least once each year it will furnish the
Purchaser with a complete statement of the receipts and
disbursements of and for the Water System for the fiscal
year immediately preceding such statement.
h. It will carry workers' compensation, public
liability and other forms of insurance on insurable Water 6
System property in such amounts as is customarily carried
on prudently operated systems of like character.
21. Appropriation of Sums. The sums required to pay the
costs of issuing the Bonds and to make the required deposit to the
Escrow Fund are hereby appropriated for those purposes. The sums
hereinbefore provided to pay the principal of and interest on the
Bonds, when due, are hereby appropriated for that purpose, and said
amounts for each year shall be included in the annual budget and
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the appropriations ordinance, resolution, or measures to be adopted
or passed by the Council in each year while any of the Bonds remain
outstanding and unpaid.
22. Defeasance. When all of the principal of, the
interest on, and any premium due in connection with the redemption
of the Bonds have been duly paid, all obligations hereunder shall
thereby be discharged and the Bonds shall no longer be deemed to
be outstanding. There shall be deemed to be such due payment when
the City has placed in escrow or in trust with a trust bank located
within the State of Colorado Federal Securities in an amount
sufficient (including the known minimum yield available for such
purpose from Federal Securities in which such amount may wholly or
in part be initially invested) to pay all principal of, interest
on, and any premium due in connection with the redemption of the
Bonds. The Federal Securities shall become due prior to the
respective times at which the proceeds thereof shall be needed in
accordance with a schedule established and agreed upon between the
City and such bank at the time of the creation of the escrow or
trust, or the Federal Securities shall be subject to redemption at
the option of the owner thereof to assure such availability as so
needed to meet such schedule. Nothing herein shall be construed
to prohibit a partial defeasance of the Bonds in accordance with
the provisions hereof.
23 . Rights and immunities. Except as herein otherwise
expressly provided, nothing herein expressed or implied is intended
or shall be construed to confer upon or to give to any person,
other than the City and the registered owners from time to time of
the Bonds, any right, remedy or claim under or by reason hereof or
any covenant, condition or stipulation hereof. All the covenants,
stipulations, promises and agreements herein contained by and on
behalf of the City shall be for the sole and exclusive benefit of
the City and any registered owner of the Bonds.
No recourse shall be had for the payment of the principal
of, interest on, or any premium due in connection with the
redemption of the Bonds or for any claim based thereon or otherwise
upon this Ordinance, or any other instrument pertaining hereto,
against any individual member of the Council or any officer or
other agent of the City, past, present or future, either directly
or indirectly through the City, or otherwise, whether by virtue of
any constitution, charter, statute or rule of law, or by the
enforcement of any penalty or otherwise, all such liability, if
any, being by the acceptance of the Bonds and as a part of the
consideration of their issuance specially waived and released.
24. Facsimile Signatures. Pursuant to the Uniform
Facsimile Signature of Public Officials Act, part 1 of article 55
of title 11, Colorado Revised Statutes, as amended, the Mayor, the
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City Clerk and the Financial Officer shall forthwith, and in any
event prior to the time the Bonds are delivered to the Purchaser,
file with the Colorado Secretary of State their manual signatures
certified by them under oath.
25. Authorized Action. The officers of the City are
hereby authorized and directed to enter into such agreements and
take all action necessary or appropriate to effectuate the
provisions of this Ordinance and to comply with the requirements
of law, including without limiting the generality of the foregoing:
a. The printing of the Bonds, including the
printing upon each of such Bonds of a copy of the
approving legal opinion of Ballard Spahr Andrews &
Ingersoll, bond counsel, duly certified by the Registrar,
and, if necessary or desirable, the preparation of
typewritten Bonds as provided herein;
b. The preparation of a final official statement
for the use of prospective purchasers of the Bonds,
including the Purchaser and its associates, if any;
c. The execution of the Escrow Agreement, the
Letter of Representations and such certificates as may
reasonably be required by the Purchaser relating to the
signing of the Bonds; the tenure and identity of the City
officials; the assessed valuation and indebtedness of the
City; if in accordance with the facts the absence of
litigation, pending or threatened, affecting the validity
of the Bonds; the tax treatment of interest on the Bonds
under federal and State of Colorado income tax laws;
delivery of the Bonds and receipt of the Bond purchase
price; and the accuracy and completeness of information
provided in the final official statement prepared for
prospective purchasers of the Bonds;
d. The making of various statements, recitals,
certifications and warranties provided in the form of
Bond set forth in this Ordinance; and
e. The payment of the interest on the Bonds as the ,6
same shall become due and the principal of the Bonds at
maturity or upon prior redemption without further warrant
or order.
26. Ordinance Irreoealable. This Ordinance is, and
shall constitute, a legislative measure of the City, and after the
Bonds are issued and outstanding, this Ordinance shall constitute
a contract between the City and the registered owners of the Bonds,
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and shall be and remain irrepealable until the principal of and
interest on the Bonds shall have been fully paid or discharged.
27. Statutory Limitations Met. The Council hereby
determines that the provisions and limitations of the Act and any
other applicable law imposed on the issuance of the Bonds have been
met.
28. Ratification. All action not inconsistent with the
provisions of this Ordinance heretofore taken by the City or its
officers and otherwise by the City directed toward the issuance and
delivery of the Bonds is hereby ratified, approved and confirmed.
29. Repealer. All acts, orders, resolutions,
ordinances, or parts thereof taken by the City in conflict with
this Ordinance are hereby repealed, except that this repealer shall
not be construed so as to revive any act, order, resolution,
ordinance, or part thereof heretofore repealed.
30. Severability. If any paragraph, clause or provision
of this Ordinance is judicially adjudged invalid or unenforceable,
such judgment shall not affect, impair or invalidate the remaining
paragraphs, clauses or provisions hereof, the intention being that
the various paragraphs, clauses or provisions hereof are severable.
31. Inconsistent Provisions of Act Superseded. Any
inconsistency between the provisions of this Ordinance and those
of the Act is intended by the Council. To the extent of any such
inconsistency the provisions of this Ordinance shall be deemed made
pursuant to the Charter of the City and shall supersede to the
extent permitted by law the conflicting provisions of the Act.
:a
76
READ, AMENDED, FINALLY PASSED AS AMENDED ON SECOND
READING, AND ORDERED PUBLISHED ONCE BY NUMBER AND TITLE ONLY this
5th day of May, 1992 .
CITY OF FORT COLLINS, COLORADO
By:
(CITY) Mayor
(SEAL)
ATTEST:
City Clerk
6
77
Council Member Maxey seconded the motion.
The question being upon the amendment of Ordinance
No. 31, 1992, the roll was called with the following result:
Council Members voting "AYE" : Susan E. Kirkpatrick
Ann Azari
Dave Edwards
Cathy Fromme
Gerry Horak
Loren R. Maxey
Bob Winokur
Council Members voting "NAY" : None
The Mayor declared that, a majority of the Council
Members present having voted in favor thereof, the motion was
carried and Ordinance No. 31, 1992, duly amended.
Council Member Winokur then moved the final passage of
Ordinance No. 31, 1992, as amended.
Council Member Maxey seconded the motion.
The question being upon the final passage of Ordinance
No. 31, 1992, as amended, the roll was called with the following
result:
Council Members voting "AYE" : Susan E. Kirkpatrick
Ann Azari
Dave Edwards
Cathy Fromme
Gerry Horak
Loren R. Maxey
Bob Winokur
Council Members voting "NAY": None
The Mayor declared that, a majority of the Council
Members present having voted in favor thereof, the motion was
carried and Ordinance No. 31, 1992, finally passed as amended.
The Council deeming it appropriate, the Mayor ordered
Ordinance No. 31, 1992, published by number and title only together
with a statement that the text thereof is available for public
inspection and acquisition in the office of the City Clerk and a
notice of the final passage of the Ordinance in The Coloradoan, a
newspaper of general circulation published in the City, within
seven (7) days after final passage.
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After consideration of other business to come before the
Council the meeting was adjourned.
ayor
City of Fort Collins, Colorado
(CITY)
(SEAL)
ATTEST:
" 1 . auC
City Clerk
City of Fort Collins, Colorado
:a
79
STATE OF COLORADO )
COUNTY OF LARIMER ) ss.
CITY OF FORT COLLINS )
I, Wanda M. Krajicek, City Clerk of the City of Fort
Collins, Colorado, do hereby certify that the attached copy of
Ordinance No. 31, 1992, is a true and correct copy; that the
Ordinance was introduced, read, and approved on first reading by
the Council of the City of Fort Collins, Colorado, at a regular
meeting thereof held at Council Chambers, City Hall, 300 West
LaPorte Avenue, Fort Collins, Colorado, the regular meeting place
thereof, on Tuesday, the 18th day of February, 1992; that
consideration of the Ordinance on second reading was duly deferred
by the Council at regular meetings thereof held at Council
Chambers, City Hall, 300 West LaPorte Avenue, Fort Collins,
Colorado, the regular meeting place thereof, on Tuesday, the 3rd
day of March, 1992, Tuesday the 17th day of March, 1992 , Tuesday,
the 7th day of April, 1992, and Tuesday, the 21st day of April,
1992; that the Ordinance was read, amended, and finally passed as
amended on second reading by the Council at a regular meeting
thereof held at Council Chambers, City Hall, 300 West LaPorte
Avenue, Fort Collins, Colorado, the regular meeting place thereof,
on Tuesday, the 5th day of May, 1992; that a true copy of the
Ordinance has been authenticated by the signatures of the Mayor of
the City and myself as City Clerk thereof, sealed with the seal of
the City, and numbered and recorded in a book marked "Ordinance
Record" kept for that purpose in my office; and that the Ordinance
was duly published by number and title only together with a
statement that the text thereof was available for public inspection
and acquisition in the office of the City Clerk and a notice giving
the date when the Ordinance would be presented for final passage
and again by number and title only together with a statement that
the text thereof was available for public inspection and
acquisition in the office of the City Clerk and a notice of the
final passage thereof in The Coloradoan, a newspaper of general
circulation published in the City, in its issues of February 23,
1992, and May 10, 1992, as evidenced by the certificates of the
publisher attached hereto at pages 82 and 83 . I further certify
that the foregoing pages 1 through 79, inclusive, constitute a true
and correct copy of the record of the proceedings of the Council
at its aforesaid regular meetings, insofar as the proceedings
relate to the Ordinance; that the proceedings were duly had and
taken; that the meetings were duly held; and that the persons were
present at the meetings as therein shown.
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IN WITNESS WHEREOF, I have hereunto set my hand and the
seal of the City of Fort Collins, Colorado, this tO day of may,
1992 .
(CITY) City Clerk o
(SEAL) City of Fort Collins, Colorado
:d
81
STATE OF COLORADO )
COUNTY OF LARIMER ) ss.
CITY OF FORT COLLINS )
(Attach certificate of publication of Ordinance by number and
title only and statement that text available for public
inspection and acquisition in office of City Clerk and notice
giving date when Ordinance to be presented for final passage. )
r
82
STATE OF COLORADO )
COUNTY OF LARIMER ) ss.
CITY OF FORT COLLINS )
(Attach certificate of publication of Ordinance by number and
title only and statement that text available for public
inspection and acquisition in office of City Clerk and notice
of final passage thereof. )
a
83