HomeMy WebLinkAbout030 - 06/06/1974 - CONCERNING THE SEWER SYSTEM OF THE CITY PROVIDING FOR THE IMPROVEMENT AND EXTENSION OF THE SYSTEM AN 7
' ORDINANCE NO 3
1974
AN ORDINANCE CONCERNING THE SEWER SYSTEM OF THE
CITY OF FORT COLLINS , PROVIDING FOR THE IMPROVE-
MENT AND EXTENSION OF THE SYSTEM AND ISSUING
REVENUE BONDS PAYABLE SOLELY OUT OF THE NET IN-
COME TO BE DERIVED FROM THE OPERATION OF THE
SYSTEM, PRESCRIBING OTHER DETAILS CONCERNING THE
BONDS, THE SYSTEM AND ITS REVENUES, INCLUDING
BUT NOT LIMITED TO COVENANTS AND AGREEMENTS IN
CONNECTION THEREWITH, RATIFYING ACTION PREVIOUSLY
TAKEN CONCERNING SAID BONDS, REPEALING ALL ORDI-
NANCES IN CONFLICT HEREWITH, AND DECLARING AN
EMERGENCY
WHEREAS, the City of Fort Collins (herein "City") ,
in the County of Larimer and State of Colorado, is a politi-
cal subdivision of the State, a body corporate and politic
and a home-rule city pursuant to Article XX of the Constitu-
tion of the State of Colorado and the Charter of the City
(herein "Charter") , and
WHEREAS, the City now owns, operates and maintains
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a municipal sanitary sewer system (herein "sewer system" or
"system") , and
J WHEREAS, the City Council of the City (herein "Coun-
cil") has determined, and does hereby declare, that the in-
terest of the City and of the inhabitants thereof, and the
i public interest and necessity demand the improvement and
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extension of the system at a cost which is estimated not to
exceed $2, 000, 000, excluding any cost to be defrayed from
t any source other than bond proceeds (herein "Pro3ect") , and
WHEREAS, excluding bonds for the redemption of which
full provision has been made, the sole outstanding bonds pay-
able from revenues derived from the operation of the system,
or any part thereof, are the City of Fort Collins, Colorado,
Sewer Refunding and Improvement Revenue Bonds, Series June 1,
1965, in the outstanding principal amount of $ 1,760,000 00
(herein "1965 bonds") , authorized by Ordinances Nos 15,1965
and 28,1965, and
WHEREAS, except as aforesaid, the City has never
pledged nor in any way hypothecated the revenues derived or
to be derived from the operation of the system for any pur-
pose, with the result that the revenues to be derived from
the operation of the system may now be pledged lawfully and
irrevocably for the redemption of the bonds herein authorized
(herein 111974 bonds") , and
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WHEREAS, Article 52 of Chapter 139, Colorado Re-
vised Statutes 1963 (commonly designated as the "Water and
Sewer Revenue Bond Act of Colorado" and herein sometimes
designated merely as the "Bond Act") authorizes the acquisi-
tion, construction, reconstruction, lease, improvement,
betterment and extension of any sewerage facility by the City
and the issuance of revenue bonds to pay in whole or in part
the cost thereof, and
WHEREAS, in order to provide funds with which to
defray in part the cost of so improving and extending the
system, the City proposes to issue its 1974 bonds payable as
to principal and interest solely out of the net income to be
derived from the operation of the system, and
WHEREAS , oursuant to a resolution passed, adopted,
and signed on the 2nd day of May, 1974, the City has pub-
licly sold the 1974 bonds, and
WHEREAS, the Council has heretofore determined, and
does hereby determine, that the proposal submitted by Halsey,
Stuart $ Co , Inc , and associates , for the
pur-
chase of the 1974 bonds was and is the best proposal submitted,
and
WHEREAS, the City is not, and has never been, in
default as to any payments required to be made by Section 19
of Ordinance No 15,1965, and
WHEREAS, the annual revenues derived from the oper-
ation of the sewer system for the Fiscal Year immediately
preceding the date of the issuance of the 1974 bonds, 1 e ,
the Fiscal Year ending December 31, 1973, have been sufficient
to pay the annual operation and maintenance expenses of the
sewer system for said Fiscal Year, and, in addition, suffi-
cient to pay an amount representing one hundred thirty per
cent (130%) of the combined maximum annual principal and in-
terest requirements of the outstanding revenue bonds and other
obligations of the City payable from and constituting a lien
upon revenues of the sewer system (excluding any reserves
therefor) and excluding from such revenues any sewer trunk
line assessments, sewer main line assessments, sewer tap fees
and plant investment fees, all of which the City has deter-
mined not to include in the gross revenues of the system, and
WHEREAS, the estimated annual revenues to be de-
rived,, from the operation of the sewer system for the twelve
months immediately succeeding the completion of the facilities
to be acquired with the proceeds of the 1974 bonds, reduced by
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an amount equal to 25% of estimated revenues to be derived
from the proposed facilities to be acquired with the pro-
ceeds of the 1974 bonds, are in an amount equal to the sum
of the following (1) the estimated operation and mainte-
nance expenses of the sewer system for said twelve months,
and (2) an amount representing one hundred thirty per cent
(130%) of the combined maximum annual principal and interest
requirements of the outstanding revenue bonds and other ob-
ligations of the City payable from and constituting a lien
upon revenues of the sewer system, and the 1974 bonds pro-
posed to be issued (excluding any reserves therefor) , and
WHEREAS, a preliminary written certification by a
Consulting Engineer (except the City Engineer) that the said
' estimated revenues and that said annual revenues, when ad-
justed as provided in Ordinance No 15, 1965, are sufficient
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to pay said amounts was submitted to the Fiscal Agent for
review at least 30 days prior to the adoption of this author-
izing ordinance, and
WHEREAS, therefore, the provisions and requirements
of Ordinance No 15,1965, for the issuance of parity lien
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bonds, have been fully met and satisfied and the revenues to
be derived from the system may now be pledged lawfully and
irrevocably for the redemption of the 1974 bonds payable from
revenues derived from the operation of the system
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF
THE CITY OF FORT COLLINS
Section 1 Short Title This ordinance may be
designated by the short title "6-1-74 Sewer Revenue Bond
Ordinance "
Section 2 Meanings and Construction The terms in
this section defined for all purposes of this ordinance and
of any ordinance amendatory hereof or supplemental hereto,
or relating hereto, and of any instrument or document apper-
taining hereto, except where the context by clear implication
otherwise requires, shall have the meanings herein specifed
A Adoption of Certain Definitions in Ordi-
nance No 15,1965 The meanings assigned to words and
phrases in paragraphs (1) , (4) , (5) , (6) , (7) , (8) , (9) ,
(10) , (12) , (14) , (16) , (17) , (18) , (19) , (20) , (22) , (25) ,
(26) , (27) , (28) , (30) , (31) , (44) , (45) , (47) , (48) , (51) ,
(57) , (58) , (59) , (60) , and (65) , of subsection A, Section 2 ,
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Ordinance No 15,1965 shall be fully applicable here-
under, the provisions of said paragraphs are hereby
adopted by reference thereto as if set forth verbatim
in full in this ordinance, and the other definitions
of this ordinance shall apply to such provisions as so
incorporated
B Other Definitions
(1) "Bond Fund" or "1974 Bond Fund"
means the special account designated as the "City
of Fort Collins, Colorado, Sewer Improvement Rev-
enue Bonds, Series June 1, 1974, Interest and
Bond Retirement Fund," created in Section 16 hereof
(2) "Bonds" or "1974 bonds" means the
bonds of that series authorized and issued pursuant
r to this ordinance
(3) "Construction Fund" means the City
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of Fort Collins, Colorado, Sewer Improvement Reve-
nue Bonds, Series June 1, 1974, Construction and
Other Acquisition Fund, " created in Section 15 hereof
(4) "Coupons" means those authorized and
issued hereunder and evidencing the interest on the
applicable bond or bonds
i (5) "Hereby, " "herein, " "hereinabove, "
"hereinafter, " "hereinbefore, " "hereof, " "hereto, "
"hereunder, " or any similar term refers to this or-
dinance and not solely to the particular portion
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thereof in which such word is used, "heretofore"
means before the adoption of this ordinance, and
"hereafter" means after the adoption of this ordinance
(6) "Minimum Reserve" means the amount to
be accumulated and maintained in the 1974 Reserve
Fund as required by Section 16 hereof
(7) 111965 Bond Fund" means the "City of
Fort Collins, Colorado, Sewer Refunding and Improve-
ment Revenue Bonds, Series June 1, 1965, Interest
and Bond Retirement Fund" created by Ordinance No
15,1965
(8) "1965 bonds" means bonds of the issue
of the City designated as the "City of Fort Collins,
Colorado, Sewer Refunding and Improvement Revenue
Bonds, Series June 1, 1965," authorized by Ordij
nance No 15,1965
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(9) "1965 Reserve Fund" means the "City
of Fort Collins, Colorado, Sewer Refunding and
Improvement Revenue Bonds, Series June 1, 1965,
Reserve Fund" created by Ordinance No 15,1965
(10) "Project" or "Improvement Project"
means the improvement and extension project herein
authorized, that is, the improvement and extension
of the system
(11) "Purchaser" means such person or
persons as shall purchase the bonds from the City
(12) "Reserve Fund" or "1974 Reserve
Fund" means the special account designated as the
"City of Fort Collins, Colorado, Sewer Improvement
Revenue Bonds, Series June 1, 1974, Reserve Fund, "
created in Section 16 hereof
(13) "Subordinate Bonds" or "subordinate
obligations" means bonds or obligations payable from
revenues of the system subordinate and junior to the
lien of the bonds herein authorized to be issued
C Construction This ordinance, except where
the context by clear implication herein otherwise requires,
shall be construed as follows
(1) Definitions include both singular
and plural
(2) Pronouns include both singular and
plural and cover all genders
(3) Any percentage of bonds is to be
figured on the unpaid principal amount thereof
then outstanding
Section 3 Ratification All action heretofore
taken (not inconsistent with the provisions of this ordinance)
by the Council and the officers of the City directed toward
the Project and the issuance of the C ty' s 1974 bonds for
those purposes, be, and the same hereby is , ratified, approved
and confirmed
Section 4 Authorization of Pro]ect The system
shall be so improved and extended by the expenditure of not
to exceed $2, 000, 000, excluding any cost of the Project de-
frayed or to be defrayed by any source other than revenue bond
proceeds, and said improvements and extensions have heretofore
been and hereby are authorized, and the Project is hereby so
authorized
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Section 5 Estimated Cost of Project The esti-
mated cost of the Project is estimated not to exceed $2, 000, 000
excluding any such cost defrayed or to be defrayed by any
source other than bond proceeds
Section 6 Authorization of Bonds For the pur-
pose of protecting the public health, conserving the prop-
erty and advancing the general welfare of the citizens of the
City, and for the purpose of defraying the cost of the Proj-
ect, it is hereby declared necessary that the City make and
issue, and there are hereby authorized to be issued, pursuant
to the provisions of the Bond Act, the "City of Fort Collins,
Colorado, Sewer Improvement Revenue Bonds, Series June 1,
1974, " in the principal amount of $2, 000, 000, payable both
as to principal and interest solely out of the net income
derived from the operation of the sewer system, and the City
pledges irrevocably, but not necessarily exclusively, such
net income to the payment of the bonds and the interest
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thereon
+ Section 7 Bond Details The bonds shall be pay-
able to bearer, shall be dated June 1 , 1974, shall consist
of 400 bonds in the denomination of $5, 000 each, numbered con-
secutively in regular numerical order from 1 to 400, inclu-
sive, shall bear interest until maturity at the rates herein-
after designated, evidenced by one set of coupons payable to
bearer and attached to the bonds, payable semiannually on
the first days of June and December in each year, commencing
► December 1, 1974, and shall be numbered and mature serially
on the first day of December in each of the designated years
and amounts, as follows
Bond Numbers Interest Rate Principal Years
(All Inclusive) Per Annum) Maturing Maturing
1 - 2
6 25 $ 10, 000 1977
3 - 4 6 25 10, 000 1978
5 - 6 6 25 10,000 1979
7 - 8 6 25 10, 000 1980
9 - 10 6 25 10,000 1981
11 - 12 6 25 10,000 1982
13 - 14 6 25 10, 000 1983
15 - 16 6 25 10,000 1984
17 - 18 6 25 10, 000 1985
19 - 54 6 25 180, 000 1986
55 - 91 6 25 185,000 1987
92 - 130 6 20 195,000 1988
131 - 170 6 20 200, 000 1989
171 - 212 6 20 210,000 1990
213 - 256 6 20 220,000 1991
257 - 302 6 30 230,000 1992
303 - 350 6 35 240,000 1993
351 - 400 6 40 250,000 1994
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both principal and interest being payable in lawful money of
the United States of America, without deduction for exchange
or collection charges , at the Paying Agent In the event any
of said bonds shall not be paid at- maturity upon presentation
and surrender, it shall continue to draw interest at the rate
of seven per cent (7%) per annum until the principal thereof
is paid in full
Section 8 Prior Redemption Option Bonds numbered
15 to 400, inclusive, maturing on and after the 1st day of
December, 1984, shall be sub3ect to redemption prior to their
respective maturities in inverse numerical order, at the op-
tion of the City, on the 1st day of June, 1984, or on any in-
terest payment date thereafter, at a price equal to the prin-
cipal amount of each bond so redeemed, accrued interest thereon
to the redemption date, and (A) a premium equal to two per cent
(2%) of the principal amount of each bond so redeemed, if re-
deemed on or before December 1, 1988, or (B) a premium equal to
one per cent (1%) of the principal amount of each bond so re-
deemed, if redeemed thereafter
Section 9 Notice of Prior Redemption Notice of
any prior redemption shall be given by the City Treasurer in
the name of the City
A By publication of such notice at `least
once, not less than thirty (30) days prior to the
redemption date, in a newspaper, as herein defined,
and
B By sending a copy of such notice by
registered, first-class, postage prepaid mail, at
least thirty (30) days prior to the redemption date
to Halsey. StuartCo. - Tno of the
purchasing group
Such notice shall specify the number or numbers of the bonds
to be so redeemed (if less than all are to be redeemed) and
the date fixed for redemption, and such notice shall further
state that on such redemption date there shall become due
and payable upon each bond so to be redeemed at the Paying
Agent (by designation) , the principal amount thereof and ac-
crued interest to the redemption date, together with the
designated premium, and from and after such date interest
shall cease to accrue Notice having been given in the man-
ner hereinabove provided, the bond or bonds so called for
redemption shall become due and payable on the redemption
date so designated, and upon presentation, at the Paying
Agent, of such called bond or bonds, together with the appur-
tenant coupons maturing subsequent to the redemption date,
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the City shall pay the bond or bonds so called for redemption
Section 10 Negotiability Sub3ect to the provi-
sions expressly stated or necessarily implied herein, the 1974
bonds hereby authorized shall be fully negotiable and shall
have all the qualities of negotiable coupon paper, and the
holder or holders thereof shall possess all rights en3oyed
by the holders of negotiable instruments under the provisions
of the Uniform Commercial Code
Section 11 Form and Execution of Bonds and Coupons
A Method of Execution
(a) Pursuant to Section 139-52-4 (7) ,
Bond Act, the Mayor, Director of Finance, and
City Clerk shall each forthwith file with the
Secretary of State his manual signature certi-
fied by him under oath
(b) Thereafter each of the bonds shall
be executed in the name of and on behalf of the
F City and authenticated with the manual signature
of the Mayor, shall be countersigned with the
j facsimile signature of the Director of Finance,
and shall be attested with the facsimile signature
of the City Clerk, with the facsimile of the seal
of the City affixed thereto The interest coupons
appertaining thereto shall be executed and authen-
ticated by the facsimile signatures of said officers
Said bonds and coupons bearing the signatures of
the officers in office at the time of the signing
thereof shall be the valid and binding obligations
of the City, notwithstanding that before the deliv-
er thereof and
Y payment therefor any or all of the
persons whose signatures appear thereon shall have
ceased to fill their respective offices The Mayor
by the execution of the bonds and all of said offi-
cers by the execution of a signature certificate
shall adopt as and for their signatures the facsim-
iles thereof appearing upon any of the bonds or
coupons In the event that at the time of execut-
ing the bonds or a signature certificate the manual
or facsimile signature of a predecessor in office
of any officer appears on the bonds or coupons,
said officer may, in like manner, adopt as and for
his own signature the manual or facsimile signature
of his predecessor
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B Incontestable Recital in Bonds Pursuant
to Section 139-52-13, Bond Act, each of the 1974 reve-
nue bonds shall recite that it is issued under the au-
thority of the Bond Act, such recital shall conclusively
impart full compliance with all of the provisions thereof,
and each bond issued containing such recital shall be
incontestable for any cause whatsoever after its delivery
for value
Section 12 Special Obligations All of the bonds,
together with the interest accruing thereon, and any prior
redemption premium, shall be payable and collectible solely
out of the net income to be derived from the operation of
the system, the income of which is so pledged, the holder or
holders thereof may not look to any general or other fund
for the payment of principal of and interest on such obliga-
tions, except the designated special funds pledged therefor,
and such bonds shall not constitute an indebtedness nor a
debt within the meaning of any constitutional, charter, or
statutory provision or limitation, nor shall they be consid-
ered or held to be general obligations of the City
{ Section 13 Form of Bonds and Coupons The bonds
and the coupons appertaining thereto shall be in substantially
{ the following form
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(Form of Bond)
UNITED STATES OF AMERICA
STATE OF COLORADO COUNTY OF LARIMER
CITY OF FORT COLLINS
SEWER IMPROVEMENT REVENUE BOND
SERIES JUNE 1, 1974
NO $5, 000
r The City of Fort Collins (herein "City") , in the
County of Larimer and State of Colorado, for value received,
hereby promises to pay to the bearer hereof, solely from the
special funds provided therefor, as hereinafter set forth,
on the first day of December, 19`, the principal sum of
FIVE THOUSAND DOLLARS
j and to pay from said special funds interest hereon from date
until maturity at the rate of
t per cent ( %)
per annum, evidenced until maturity by one set of interest
coupons, payable on the first day of December, 1974, and semi-
annually thereafter on the first days of June and December in
each year, upon presentation and surrender of this bond and
the annexed interest coupons as they severally become due
If upon presentation at maturity, payment of this bond is not
made as herein provided, interest shall continue at the rate
of seven per cent (7%) per annum until the principal hereof
is paid in full Both principal and interest are payable in
lawful money of the United States of America, without deduc-
tion for exchange or collection charges, at the office of the
_
Director of Finance and ex officio City Treasurer, in Fort
Collins, Colorado
The bonds of the series of which this is one matu-
ring on and after the lst day of December, 1984, are sub3ect
to prior redemption in inverse numerical order at the option
of the City on the 1st day of June, 1984, or on any interest
payment date thereafter at a price equal to the principal
amount of each bond so redeemed, accrued interest thereon to
the redemption date and (A) a premium equal to two per cent
(2%) of the principal amount of each bond so redeemed if re-
deemed on or before December 1, 1988, or (B) a premium equal
to one per cent (1%) of the principal amount of each bond so
= redeemed, if redeemed thereafter Redemption shall be made
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upon not less than thirty days' prior published and mailed
notice in the manner and upon the conditions provided in the
ordinance authorizing the issuance of this bond
This bond does not constitute a debt nor an indebt-
edness of the City within the meaning of any constitutional,
charter, or statutory provision or limitation, shall not be
considered or held to be a general obligation of the City,
and is payable and collectible solely out of the net income
derived from the operation of the City 's municipally owned
sewer system (herein "system") , the income of which is so
pledged, and the holder hereof may not look to any general
or other fund for the payment of the principal of and inter-
est on this obligation, except the special funds pledged
therefor Payment of the bonds of the series of which this
is one and the interest thereon shall be made solely from,
and as security for such payment there are pledged, pursuant
to the 6-1-74 Sewer Revenue Bond Ordinance, two special funds
' identified as the "City of Fort Collins, Colorado, Sewer Improve-
ment Revenue Bonds, Series June 1, 1974, Interest and Bond
Retirement Fund, " and as the "City of Fort Collins, Colorado,
Sewer Improvement Revenue Bonds, Series June 1, 1974, Reserve
Fund," into which funds the City covenants to pay respectively,
from the revenues derived from the operation of the sewer sys-
tem, as therein defined, after provision only for all neces-
sary and reasonable expenses of the operation and maintenance
of the system, sums sufficient to pay when due the principal
of and the interest on the bonds of the series of which this
f is one and of any series on a parity therewith and to create
and maintain a reasonable and specified reserve for such purpose
For a description of said funds and the nature and extent of the
security afforded thereby for the payment of the principal of
and the interest on said bonds, reference ms made to said ordi-
nance The bonds of the series of which this is one are equit-
ably and ratably secured by a lien on the met revenues of the
system, as therein defined, and said bonds constitute an irrevo-
cable and first lien (but not necessarily an exclusively first
lien) upon said net revenues, on a parity with the lien thereon
of the outstanding City of Fort Collins, Colorado, Sewer Refund-
ing and Improvement Revenue Bonds, Series June 1, 1965 Bonds
in addition to the series of which this is one, subject to ex-
pressed conditions, may be issued and made payable from said net
revenues of the system and having a lien thereon subordinate
and junior to the lien, or subject to addxttional expressed
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conditions, having a lien thereon on a parity with the lien, of
the bonds of the series of which this is one, in accordance with
the provisions of said ordinance
This bond and the other bonds of the series of which
it is a part are issued under the authority of Article 52, Chap-
ter 139, Colorado Revised Statutes 1963, including all pres-
ently existing amendments, which act is commonly designated as
the "Water and Sewer Revenue Bond Act of Colorado", pursuant to
Section 139-52-13 thereof such recital conclusively imparts
full compliance with all provisions of said Act, and this bond
issued containing such recital is incontestable for any cause
whatsoever after its delivery for value
The City covenants and agrees with the holder of
this bond and with each and every person who may become the
holder hereof that it will keep and perform all of the cove-
nants of said ordinance, including, without limiting the
generality of the foregoing, its covenants that it will fix,
maintain and collect rates for services rendered by the sys-
tem sufficient to produce revenues or earnings sufficient to
pay the annual operation and maintenance expenses and an
' amount equal to one hundred thirty per cent (130%) of the
combined maximum annual principal and interest requirements
f
of the bonds and any other obligations payable annually from
any revenues of the system (excluding the reserves therefor)
f This bond is one of a series of bonds of like tenor,
amount and date, except as to number, purpose, interest rate,
j prior redemption option and maturity, issued for the purpose
of the improvement and extension of the City's municipally
owned and operated sewer system The bonds of said series
are issued in conformity with the Constitution and laws of
the State of Colorado, the Charter of the City, and the
6-1-74 Sewer Revenue Bond Ordinance of the City duly passed
and adopted prior to the issue hereof
This bond is subject to the condition, and every
holder hereof by accepting the same agrees with the obligor
and every subsequent holder hereof, that (a) the delivery of
this bond to any transferee shall vest title in this bond
and in the interest coupons attached hereto in such trans-
feree to the same extent for all purposes as would the de-
livery under like circumstances of any negotiable instrument
payable to bearer, (b) the obligor and any agent of the
obligor may treat the bearer of this bond as the absolute
owner hereof for all purposes, and shall not be affected by
any notice to the contrary, (c) the principal of and the
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interest on this bond shall be paid, and this bond and each
of the coupons appertaining thereto are transferable, free
from and without regard to any equities between the obligor
and the original or any intermediate holder hereof, or any
setoffs or cross-claims, and (d) the surrender to the obligor
or any agent of the obligor of this bond and of each of the
coupons shall be a good discharge to the obligor for the same
It is further certified, recited and warranted that
all the requirements of law have been fully complied with by
the proper officers of the City in the issue of this bond
IN WITNESS WHEREOF, the City of Fort Collins has
caused this bond to be executed and authenticated in its
name with the manual signature of the Mayor of the City of
Fort Collins and countersigned by the facsimile signature
of the City' s Director of Finance and ex officio City Trea-
surer, and attested with the facsimile signature of the City
Clerk, has caused the facsimile of the seal of the City to
4 be affixed hereon, and has caused the interest coupons apper-
taining hereto to be executed with the facsimile signatures
t of said officers, all as of the first day of June, 1974
CITY OF FORT COLLINS
}
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By (Manual Signature)
� (FACSIMILE SEAL) Mayor
ATTEST
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(Facsimile Signature)
City Clerk
Countersigned
(Facsimile Signature)
Director of Finance
(End of Form of Bond)
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(Form of Coupon)
Coupon
No $
June,
On the first day of December, 19_, unless the bond
to which this coupon is attached, if callable prior to said
date, is called for prior redemption, the City of Fort Collins,
in the County of Larimer and State of Colorado, will pay to
bearer in lawful money of the United States of America at the
office of the Director of Finance and ex officio City Trea-
surer, in Fort Collins, Colorado, the amount herein stated
solely from and secured by a pledge of special funds created
from the net revenues derived from the operation of the sewer
system of the City, and providing for the payment of six
months' interest on its City of Fort Collins, Colorado, Sewer
Improvement Revenue Bond, Series June 1, 1974, and bearing
Bond
No
(Facsimile Signature)
Mayor
(Facsimile Signature)
City Clerk
(Facsimile Signature)
Director of Finance
i
(End of Form of Coupon)
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Section 14 Bond Preparation, Execution and Deliv-
ery The Mayor, City Clerk and Director of Finance are hereby
authorized and directed to prepare and execute the bonds as
herein provided When the bonds have been duly executed and
sold, the Director of Finance shall deliver them to the Pur-
chaser on receipt of the agreed purchase price
Section 15 Disposition of Bond Proceeds
A Accrued Interest and Premium All moneys
received as accrued interest at the time of delivery of
the bonds from the sale thereof and any premium therefor
shall be deposited into the Bond Fund, to apply on the
payment of interest next due on the 1974 bonds payable
therefrom
B Construction Fund All other proceeds re-
ceived from the sale of the bonds shall be deposited
promptly upon the receipt thereof in a separate account
hereby created and to be known as the "City of Fort
Collins, Colorado, Sewer Improvement Revenue Bonds, Ser-
ies June 1, 1974 , Construction and Other Acquisition
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Fund" (herein "Construction Fund") The moneys in the
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Construction Fund, except as herein otherwise specifi-
cally provided, shall be used and paid out solely for
the Project Moneys shall be withdrawn from the Con-
struction Fund for the Project only upon vouchers or
s
checks drawn and signed by the Director of Finance and
! the Assistant Director of Finance The account hereby
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created in this paragraph B of Section 15 hereof, may
be maintained as an account in the City' s existing
Sewer Capital Improvement Fund, but shall be separately
` accounted for
C Completion of Project When the Improve-
ment Project shall have been completed in accordance
with such plans and specifications, and when all amounts
due therefor, including all proper incidental expenses,
shall have been paid, the Consulting Engineer shall file
with the Director of Finance a certificate so stating
D Investment and Tax Exemption Except as
herein otherwise provided, the proceeds derived from
the sale of the bonds shall be applied solely to the Proj-
ect Pending such application the bond proceeds may be
invested in such manner as is permitted in Section 17
hereof, but the City hereby covenants for the benefit of
each holder of the bonds that
-16-
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(1) Bond proceeds shall not be invested
+ in such manner as to result in the loss of exemp-
tion from federal income taxation of interest on
the bonds,
(2) Such sums constituting in the aggre-
gate a major portion or more of the proceeds of
the bonds shall not be invested directly or indi-
rectly in taxable obligations so as to produce an
adjusted yield (including permissible adjustments
for any premiums, discounts and costs) , which is
materially higher than the adjusted yield of the
bonds and which results in the bonds constituting
taxable "arbitrage bonds" within the meaning of
5 103 (d) , Internal Revenue Code of 1954, as amended
by 5 601 (a) , Tax Reform Act of 1969 (83 Stat 656) ,
any subsequent amendments, and the Income Tax Reg-
ulations issued thereunder,
(3) The City shall make no use of the
proceeds of the bonds which will cause them to be
such arbitrage bonds,
(4) The covenant in this section imposes
s
an obligation on the City to comply with the require-
ments of § 103 (d) of such Code and such Income Tax
i Regulations, but
} (5) Such sums may be otherwise invested
!, if and when such act and regulations permit the
investment to be made in the manner made without
causing the bonds to become such arbitrage bonds
E Purchaser Not Responsible Any purchaser
of the bonds herein authorized, however, shall in no man-
ner be responsible for the application or disposal by
the City or by its officers of the funds derived from
the sale thereof or of any other funds herein designated
Section 16 Administration of Sewer Fund So long
as any of the bonds hereby authorized shall be outstanding,
either as to principal or interest, or both, the following
payments shall be made from the separate account known
as the "City of Fort Collins, Colorado, Sewer System Gross
Income Fund" (created by Ordinance No 15,1965 and herein
sometimes designated as the "Sewer Fund" or as the "Income
Fund")
A 0 & M Expenses Firstly, as a first
charge thereon, there shall continue to be set aside
i -17-
from time to time moneys sufficient to pay operation
and maintenance expenses of the system as they become
due and payable, and thereupon they shall be promptly
paid Any surplus remaining at the end of the Fiscal
Year and not needed for operation and maintenance ex-
penses shall be transferred to the Sewer Fund and be
used for the purposes thereof, as herein provided
B 1965 Bond and Reserve Funds Secondly,
and subject to the aforesaid provisions, from any
moneys remaining in the Sewer Fund, 1 e , from the
net income of the system, there shall continue to be
deposited into the 1965 Bond Fund and 1965 Reserve Funds,
respectively, the monthly payments required by Section
19 of Ordinance No 15,1965, as such section is supple-
mented and qualified by the remainder of Ordinance No
15,1965
C 1974 Bond Fund Thirdly
, and subject to
the aforesaid provisions but concurrently with the
monthly payments required by paragraph B of this sec-
tion, from said moneys remaining in the Income Fund,
i e , from the net income of the system, there shall
also be deposited into a separate account hereby created
and to be known as the "City of Fort Collins, Colorado,
i
Sewer Improvement Revenue Bonds, Series June 1, 1974,
j Interest and Bond Retirement Fund" (herein sometimes
referred to as the "1974 Bond Fund" or as the "Bond
Fund") , the following
(1) Monthly
, commencing on the 1st day
of July, 1974, an amount in equal monthly install-
ments necessary, together with any moneys therein
and available therefor, to pay the next maturing
installment of interest on the 1974 bonds then out-
standing, and monthly thereafter commencing on said
interest payment date one-sixth of the amount neces-
sary to pay the next maturing installment of inter-
est on the outstanding 1974 bonds
(2) Monthly, commencing on the 1st day
of January, 1976 one-twelfth of the amount neces-
sary to pay the next maturing installment of prin-
cipal on the 1974 bonds
s
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i
D 1974 Reserve Fund Fourthly, but concur-
rently with the payments required by paragraphs B and C
of this section, except as provided in paragraphs E and
F of this section, from any moneys remaining in the Sewer
Fund, there shall be set aside and paid monthly, commenc-
ing on the 1st day of July, 1974, at least $ 2 300 00
per month into a separate account hereby created and to
be known as the "City of Fort Collins, Colorado, Sewer
Improvement Revenue Bonds, Series June 1, 1974 , Reserve
Fund" (herein sometimes referred to as the "1974 Reserve
Fund" or as the "Reserve Fund") , until a reserve has been
accumulated in an amount equal to not less than $ 276 000 00
(herein sometimes designated as the "Minimum Reserve")
After the Minimum Reserve has been accumulated, such amounts
or amount, if any, shall be deposited monthly from any
moneys remaining in the Sewer Fund, into the 1974 Reserve
Fund necessary to maintain the Reserve Fund as a continuing
reserve in an amount not less than the Minimum Reserve
to meet possible deficiencies in the 1974 Bond Fund
No payment need be made into the 1974 Reserve Fund so
long as the moneys therein shall equal not less than
the Minimum Reserve The moneys in the 1974 Reserve
i Fund shall be accumulated and maintained as a continu-
ing reserve to be used, except as hereinafter provided
in said paragraph E and F of this section, only to pre
vent deficiencies in the payment of the principal of
and the interest on the bonds hereby authorized result-
ing from the failure to deposit into the 1974 Bond Fund
sufficient funds to pay said principal and interest as
the same accrue
fi E Termination upon Deposits to Maturity No
payment need be made into the 1974 Bond Fund, the 1974
Reserve Fund, or both, if the amount in the 1974 Bond Fund
and the amount in the 1974 Reserve Fund total a sum at
least equal to the entire amount of the 1974 bonds out-
standing, both as to principal and interest to their re-
spective maturities, and both accrued and not accrued,
in which case moneys in said two funds in an amount at
r
-19-
+
least equal to such principal and interest requirements
' shall be used solely to pay such as the same accure,
and any moneys in excess thereof in said two funds and
any other moneys derived from the operation of the sys-
tem may be used in any lawful manner determined by the
` City Council
F Defraying Delinquencies in Bond Fund and
Reserve Fund If, in any month, the City shall, for any
reason, fail to pay into the 1974 Bond Fund the full
amount above stipulated from the net income of the sewer
+ system then an amount shall be paid into the 1974 Bond
Fund in such month from the 1974 Reserve Fund equal to
the difference between that paid from said net income and
the full amount so stipulated The money so used shall
be replaced in the 1974 Reserve Fund from the first rev-
enues thereafter received from the operation of the sys-
tem not required to be otherwise applied by paragraphs
A, B, C, D and G of this section, but excluding any pay-
q1 ments required for any subordinate obligations In the
f case other bonds or other obligations are outstanding
any lien to secure the payment of which on the net rev-
enues of the system is on a parity with the lien thereon
of the 1974 bonds, and the proceedings authorizing the
issuance of those obligations require the replacement
f of moneys in a reserve fund therefor, then the money
E replaced in the 1974 Reserve Fund and each such other
I reserve fund shall be replaced on a pro rata basis as
moneys become available therefor If, in any month,
the City shall, for any reason, fail to pay into the
Reserve Fund the full amount above stipulated from the
net income of said sewer system, the difference between
the amount paid and the amount so stipulated shall in
a like manner be paid therein from the first revenues
thereafter received from the operation of the system
not required to be otherwise applied by paragraphs A,
B, C, D and G of this section, but excluding any pay-
ments required for any subordinate obligations The
moneys in the 1974 Bond Fund and the 1974 Reserve Fund
shall be used solely and only for the purpose of paying
the principal of and the interest on the bonds issued
hereunder, provided, however, that any moneys at any
time in excess of the Minimum Reserve in the 1974 Re-
serve Fund may be withdrawn therefrom and used as herein
-20-
provided for the redemption of bonds hereby authorized
as they become due or on any redemption date, and pro-
vided that any moneys in the 1974 Bond Fund and the
1974 Reserve Fund in excess of accrued and unaccrued
principal and interest requirements to the respective
maturities of the bonds outstanding may be used as
hereinabove provided in paragraph E of this section
G Payment for Additional obligations
Fifthly, but either subsequently to or concurrently
with the payments required by paragraphs C and D of
this section and as provided in Section 18 hereof,
any balance remaining in the Sewer Fund, after making
the payments hereinabove provided, shall be used by
the City for the payment of interest on and the prin-
cipal of additional bonds or other obligations here-
after authorized to be issued and payable from the
revenues of the sewer system, including reasonable
r
reserves therefor, as the same accrue, provided that
the lien of such additional bonds or other obligations
on the net income and revenues of the system and the
pledge thereof for the payment of such additional
obligations shall be on a parity with, or subordinate
to, the lien and pledge of the bonds herein author-
ized, as hereinafter provided
H Use of Sewer Revenues After making the
payments hereinabove required to be made by paragraphs
i
A to G, inclusive, of this section, any remaining in-
come and revenues derived from the operation of the
sewer system in the Sewer Fund, shall be used for any
t one or any combination of purposes, as follows
(1) For the payment of the interest on
and principal of general obligation bonds, debt and
other obligations, if any, incurred in the acquire-
ment, construction and improvement of the sewer
system,
(2) For the purchase in the open market
of the 1974 bonds or any other outstanding bonds
or other obligations incurred for any such purpose
or purposes and payable from any revenues of the
sewer system, at the best price obtainable, not,
however, in excess of the call price therefor then
applicable, or if none be then applicable, not in
excess of a reasonable price therefor,
-21-
(3) For the prior redemption of the 1974
bonds or any other outstanding bonds or other obli-
gations incurred for any such purpose or purposes
and payable from the revenues of the system, in ac-
cordance with the provisions of the bonds or other
obligations and the ordinance authorizing their
issuance, including but not necessarily limited to
this ordinance, but not in excess of a price at
which such bonds or other obligations can be pur-
chased in the open market,
(4) For the improvement and extension of
the sewer system,
(5) For any other lawful purpose or pur-
poses authorized by the Constitution and laws of
the State of Colorado and the resolutions, ordinances
1
and Charter of the City, as the same may be amended
from time to time,
3
as the City Council at its option may from time to time
determine and direct
Section 17 General Administration of Funds The
" funds and accounts designated in Sections 15 and 16 hereof
and in Section 18 of Ordinance No 15,1965 shall be adminis-
tered as follows
j
i A Places and Times of Deposits Each of said
funds and accounts shall be maintained and accounted for
separately from all other funds and accounts and shall be
deposited in an Insured Bank or Insured Banks as deter-
mined and designated by the City Council (except as other-
wise expressly stated herein) , but each fund and account
need not necessarily constitute a separate bank account
Each bank account shall be continuously secured to the
fullest extent required or permitted by the laws of
Colorado for the securing of public funds, and shall be
irrevocable and not withdrawable by anyone for any pur-
pose other than the respective designated purposes Each
monthly payment shall be made into the proper account
on the first day of each month, except that when the
first day of any month shall be a Sunday or a legal hol-
iday, then such payment shall be made on the next pre-
ceding secular day Notwithstanding any other provision
herein to the contrary, moneys shall be credited with
the Paying Agent at least five days prior to each inter-
est payment date herein designated sufficient to pay the
interest and any prin%pal then becoming due on the bonds
-22-
i
B Investment of Moneys Sub3ect to the
provisions of Section 15, D, hereof, any moneys in
' any said account not needed for immediate use, may be
invested or reinvested by the Director of Finance in
Federal Securities which shall be sub3ect to redemp-
tion at face value by the holder thereof at the option
of such holder, or which shall mature not later than
ten years from the date of such investment, provided,
however, that the maturity of any security which is
not sub3ect to prior redemption at the holder' s option
shall not exceed the estimated date of the probable
expenditure or use of the moneys evidenced by such
security The Federal Securities so purchased as an
investment of moneys in any such account shall be
deemed at all times to be a part of said account, and
the interest accruing thereon and any profit realized
therefrom (except from the Construction Fund) shall be
3 credited to the account to which the investment apper-
tains, and any loss resulting from such investment shall
be charged to such account Moneys in any said account
not immediately needed as hereinabove provided in this
paragraph B, may also be invested or reinvested in a
savings account in a state or federal savings and loan
association in Colorado which is a member of the Federal
i
1 Savings and Loan Insurance Corporation, so long as the
payment of such account is fully secured under the appro-
priate federal law The Director of Finance shall pre-
sent for redemption or sale on the prevailing market any
Federal Securities so purchased as an investment of moneys
in the fund or account whenever it shall be necessary to
do so in order to provide moneys to meet any payment or
transfer from such account
C Character of Funds The moneys in any
account herein authorized shall consist either of lawful
money of the United States of America, or Federal Secu-
rities, or both such money and such securities Moneys
deposited in a demand or time deposit account in, or
evidenced by a certificate of deposit of, an Insured
Bank, or deposited in a savings account pursuant to the
next preceding paragraph B hereof, shall be deemed law-
ful money of the United States of America
Section 18 Bond Liens and Additional Bonds Ex-
cept as hereinafter provided, the lien of the 1974 bonds and
A
-2 3-
of future bonds shall be in all respects as provided in Sec-
tions 21 to 31, inclusive, of Ordinance No 15,1965, future
bonds shall be issued in accordance with the provisions and
i limitations thereof, the provisions of said sections are
hereby adopted by reference thereto as if set forth verbatim
in full in this ordinance and as so incorporated, the defin-
itions of this ordinance shall apply thereto, provided, how-
ever, that each reference in said sections to "1965 bonds"
or "1965 revenue bonds" shall be construed for purposes of
this ordinance as referring to the 1974 bonds, and the ref-
erence to Section 19 shall be construed for purposes of this
ordinance as referring to Section 16 of this ordinance
Section 19 Particular Covenants of the City Ex-
cept as hereinafter provided, the provisions of Section 32
of Ordinance No 15,1965, shall constitute covenants and
agreements between the City and the holders of the 1974 bonds
and coupons, the provisions of said sections are hereby
adopted by reference thereto as if set forth verbatim in
i
full in this ordinance and as so incorporated, the defini-
tions of this ordinance shall apply thereto, provided, how-
ever, that
A All references in said section to re-
funding bonds and provisions in relation thereto
are excepted from such incorporation by reference,
B Each reference in said section to the
1965 bonds shall be construed for purposes of this
ordinance as referring to the 1974 bonds,
C The reference in paragraph A(2) of said
section to $2,200, 000 shall be construed for purposes
of this ordinance as $2,000, 000,
D Each reference in said section to Sec-
tion 19 shall be construed for purposes of this or-
dinance as referring to Section 16, and
E Each reference in said section to Sec-
tions 23 to 31 shall be construed for purposes of this
ordinance as referring to Section 18
Section 20 Miscellaneous The provisions of Sec-
tions 34 to 43, inclusive, of Ordinance No 15, 1965, shall be
fully applicable hereunder, the provisions of said sections
are hereby adopted by reference thereto as if set forth ver-
batim in full in this ordinance and as so incorporated, the
definitions of this ordinance shall apply thereto
-24-
e
1
1 {
Section 21 Emergency, Publication, and Effective
Date There are existing conditions, hereinafter described,
' actually arising from unforeseen contingencies which immed-
iately endanger public property, health, peace and safety
The City has received an abatement order from the Water Pol-
lution Control Board of the State of Colorado requiring the
City to bring its sewage discharge into compliance by July 1,
1974, or to cease operating a sewer utility The consumma-
tion of the sale and delivery of the bonds herein authorized
must take place at the earliest possible date if the City is
to have a reasonable expectation of taking affirmative ac-
tion in time to satisfy the State's requirements
Therefore, this ordinance is immediately necessary
on account of such emergency and immediately upon its final
passage this ordinance shall take effect and thereupon shall
be numbered and recorded in the Ordinance Record, authenti-
cated by the signatures of the Mayor and of the City Clerk,
shall be published in the _ Fat Collans Co oradnan , a
newspaper of the City published and of general circulation
therein within 5 days after
y passage and such publication shall
also be authenticated by the signatures of the Mayor and City
Clerk
! INTRODUCED, PRESENTED AND FINALLY PASSED THIS 6TH
DAY OF JUNE, 1974
i
i
(SEAL) �^ Mayor
JILT 11EST
City Clerk
e
-25-
It was thereupon moved byl Councilwoman Preble
and seconded by Councilwoman Reeves that any rule of
the City Council which would prevent the passage of said ordi-
nance at this meeting be suspended, and said ordinance be
placed upon its final passage The roll was called upon said
motion with the following result
Those Voting Yes J W N Fead
Charles Bowling
Mabel Preble
Margaret Reeves
Jack Russell
Earl Wilkinson
Those Voting No None
The presiding officer declared the motion carried
and the rules suspended, and said ordinance placed upon its
final passage
Councilwoman Preble then moved that said or-
dinance be passed as presented Councilwoman Reeves seconded
i
f the motion The motion being upon the final passage of the
ordinance, the roll was called with the following result
Those Voting Yes Charles Bowling
{
J W N Fead
Mabel Preble
j Margaret Reeves
j Jack Russell
' Earl Wilkinson
1
,
Those) Voting No None
The presiding officer thereupon declared that, at
least 4 of the members present having voted in favor of said
ordinance, the said motion was carried and the ordinance fin-
ally passed and in effect
Thereupon, other business not appertaining to the
City' s sewer system was considered
Thereafter, there being no further business to come
before the meeting, on motion duly made, seconded and unani-
mously carried, the meeting was adjourned
(SEAL) Mayor
ATTEST
City Clerk
-2 6-
,
STATE OF COLORADO )
COUNTY OF LARIMER ) SS
i )
CITY OF FORT COLLINS )
We J W N Fead , the Mayor and Verna
Lewis the City Clerk of the City of Fort
Collins, Colorado, do hereby certify
1 That the foregoing Ordinance No 30,1974 was
finally passed and ordered published at a regular meeting
of the City Council held on Thursday, the 6th day of June,
1974, and was published in full within 5 days thereof on the
llth day of June, 1974, in The Fort Collins Coloradoan ,
a newspaper printed, published and of general circulation in
the City of Fort Collins
2 That the Mayor and 1; other members of the
City Council were present at said meeting, and that the mem-
bers of said City Council voted on the passage of said ordi-
nance as in said minutes set forth
,
3 That the foregoing pages numbered 1 to 26, in-
clusive, are a true, full and correct co of the
PY proceedings ceedings
of the City Council of said City, insofar as said minutes
relate to the final adoption of said ordinance, which ordinance
t is recorded in full in the Ordinance Record
IN WITNESS WHEREOF, we have hereunto set our hands
and affixed the seal of the City of Fort Collins, Colorado,
1 this 6th day of June, 1974
Mayor
City ler
(SEAL)
.r -
-27-
r
(Attach Affidavit of Publication in Full
of Ordinance No )
I
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