HomeMy WebLinkAbout158 - 11/20/1984 - AUTHORIZING THE ISSUANCE OF SEWER REVENUE BONDS, SERIES 1984, DATED NOVEMBER 1, 1984, IN THE AGGREGA CERTIFIED RECORD
OF
PROCEEDINGS OF THE COUNCIL OF
THE CITY OF FORT COLLINS , COLORADO
RELATING TO AN ORDINANCE
AUTHORIZING THE ISSUANCE OF ITS
SEWER REVENUE BONDS
SERIES 1984
DATED NOVEMBER 1 , 1984
IN THE AGGREGATE PRINCIPAL AMOUNT OF $11 , 000, 000
R.
' TABLE OF CONTENTS
(Not a part of this Ordinance)
Page
Section 1. Definitions and Construction. . . . . . . . . . . . . . . . . . . 2
2
A. Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
B. Construction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section 2. Necessity; Authority for Bonds, . . . . . . . . 9
9
A. Necessity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
B. Authority for Bonds. . . . . . . . . . . . . . . . . . . . . . . .
Section 3. The Bonds. . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
9
A. Authorization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
B . Bond Details. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
C. Bonds Equally Secured. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
D. Special Obligations. . . . . . . . . . . . . . . . . . . . . . . . . • • •
Section 4. Sale of Bonds. . . . . . . . . . . . . . . . . . . . . . . . .
24
A. Necessity of Project and Issuance of Bonds. . . : : : : : 24 24
B. Public Sale. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
C. Award of Contract. . . . . . . . . . . . . . . . . . . . . . . . .
Section 5. Funds and Accounts Adopted or Created by • • . 24
Ordinance. . . . . . . . . . . . . . . . . . . . . . .
A. Disposition of Bond Proceeds and Other Revenues; 24
Security For Bonds. . . . . . . . . . . . . . . . . . . . . o . . . . . . . .
. . . 25
B. Capital Projects Fund. . . . . . . . . .
. . . . . . . . . . . . . . • . . . 26
C. Sewer Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
D. Operation and Maintenance Fund. . . . . . . . . . . . . . . . . . . .
27
E. Principal and Interest Fund. . . . . . . . . . . . . . . . . . . . . . .
27
F. Debt Service Reserve Fund. . . . . . . . . . . . . . . . . . . . . . . .
G. Termination of Deposits; Use of Moneys in
Principal and Interest Fund and Debt Service 28
Reserve Fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
H. Payment of Additional Subordinate Securities. . . . . . 29
I . Sewer Depreciation and Capital Improvements Fund. . 29
30
J. Use of Remaining Revenues. . .
K. Budget and Appropriation of Sums. . . . . . . . . . . . . . . 30
Section 6. General Administration of Funds. . . . . . . . . . . . . . . . 30
Places and Times of Deposits. . . . . . . . . . . . . . . . . . . . . . 30
A. 31
B. Investment of Funds. . . . . . . . . . . . . . . . . . . . . . . .
C. No Liability for Losses Incurred in Performing � . 31
Terms of Ordinance. . . . . . . . . . . . . . . . . . . . . . . . . . . .
(i)
�1
Page
D. Character of Funds. . . . . . . . . . . . . . . . . . . . . . . 31
E. Accelerated Payments Optional. . . . . . . . . . . . . . . . . . . . . 31
Section 7. Priorities; Liens; Issuance of Additional
Bonds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
A. First Lien on Pledged Revenues; Equality of Bonds. 32
B. Issuance of Parity Securities. . . . . . . . . . . . . . . . . . . . . 32
C. Certification of Revenues. . . . . . . . . . . . . . . . . . . 34
D. Subordinate Securities Permitted. . . . . . . . . . . . . . . . . . 34
E. Superior Securities Prohibited. . . . . . . . . . . . . . . . . . . . 34
F. Refunding Bonds. . . . . . . . . . . . . . . . . . . . . . . 34
G. Payment Dates of Additional Bonds. . . . . . . . . . . . . . . . . 36
H. Supplemental Ordinances. . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Section 8. Covenants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
A. Rate Maintenance Covenant. . . . . . . . . . . . . . . . . . . . . . . . . 37
B. Collection of Charges. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
C. Competent Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
D. Performance of Duties. . . . . . . . . . . . . . . . . . . . . . . . 38
E. Costs of Bond Issue and of Performance. . . . . . . . . . . . 38
F. Contractual Obligations. . . . . . . . . . . . . . . . . . . . . . . . . . . 38
G. Further Assurances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
H. Conditions Precedent. . . . . . . . . . . . . . . . . . . . . . 39
I . Efficient Operation and Maintenance; No Free
Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
J. Records and Accounts. . • . . . . . . . . . . . . . . . . . . . . . 39
K . Rules, Regulations and Other Details. . . . . . . . . . . . . . 40
L. Payment of Governmental Charges. . . . . . . . . . . . . . . . . . . 40
M. Protection of Security. . 40
N. Accumulation of Interest Claims. . . . . . . . . . . . . . . . . . . 40
O. Prompt Payment of Bonds. . . o . . . . . . . . . . . . . . . . . . . . . . . 41
P. Use of Principal and Interest and Debt Service
Reserve Funds. . 41
Q. Additional Securities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
R. Other Liens. . . . . . . . . . . . . . . . . . . . . . . 41
. . . . . . . . . . . . . . .
S. Disposal of Sewerage Facilities Prohibited. . . . . . . . 41
T. Surety Bonds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
U. Arbitrage Covenant— . . . . . . . . . o . . . . . . . . . . . . o . . . . . . . 42
V. Disposal of Property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
W. Loss from Condemnation. . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
X. Inspection of Records. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Y. Audits Required. . . . . . . . . 43
Z . Insurance and Reconstruction. . . . . . . . . . . . . . . 43
AA. Completion of Project; Estimated Life of Project. . 43
Section 9. Defeasance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
(ii)
i
t
Page
Section 10. Default Provisions and Remedies of
Bond Owners. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
A. Events of Default. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
B. Remedies for Defaults. . . . . . . . . . . . . . . . . . . . . 45
C. Rights and Privileges Cumulative. . . . . . . . . . . . . . . . . . 46
D. Duties Upon Default. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
E. Evidence of Security Owners. . . . . . . . . . . . . . . . . . . . . . . 47
F. Warranty Upon Issuance of Bonds. . . . . . . . . . . . . . . . . . . 48
G. Immunities of Purchaser. . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Section 11. Amendment of Ordinance. . . . . . . . . . . . . . . . . . . . . . . . . 48
A. Amendment of Ordinance Not Requiring Consent
of Bond Owners. . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
B. Amendment of Ordinance Requiring Consent of
Bond Owners. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
C. Time for and Consent to Amendment. . . . . . . . . . . . . . . . . 50
D. Unanimous Consent. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
E. Exclusion of Bonds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
F. Notation on Bonds. . . . . . . . . . . . . . . . . . . . . . . . . . . 51
G. Proof of Instruments and Bonds. . . . . . . . . . . . . . . . . . . . 51
Section 12. Miscellaneous. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
A. Character of Agreement. . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
B. No Pledge of Property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
C. Statute of Limitations. . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
D. Delegated Duties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
E. Successors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
F. Rights and Immunities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
G. Ratification. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
H. Facsimile Signatures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
I . Ordinance Irrepealable. . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
J. Repealer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
K. Severability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
(iii)
STATE OF COLORADO )
COUNTY OF LARIMER ) ss.
CITY OF FORT COLLINS )
The Council of the City of Fort Collins, Colorado,
reconvened its adjourned regular meeting of October 16, 1984 at
Council Chambers , City Hall, 300 LaPorte Avenue, Fort Collins ,
Colorado , on Tuesday, the 30th day of October , 1984 , at the hour
of 5: 30 p.m.
The following persons were present :
Council Members: Gerald C. Horak, Mayor
E. John Clarke, Assistant Mayor
William Elliott
John B. Knezovich
Kelly Ohlson
Barbara Rutstein
Ed Stoner
City Manager : John E. Arnold
City Clerk : Wanda M. Krajicek
The following persons were absent:
None
Council Member Knezovich introduced the
following Ordinance , which was 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 said Ordinance
was introduced for each Council Member and for inspection and
copying by the general public :
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y ORDINANCE NO. 158, 1984
AN ORDINANCE AUTHORIZING THE ISSUANCE OF CITY
OF FORT COLLINS, COLORADO, SEWER REVENUE BONDS,
SERIES 1984, DATED NOVEMBER 1, 1984, IN THE
AGGREGATE PRINCIPAL AMOUNT OF $11,000,000.
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS,
COLORADO, AS FOLLOWS:
Section 1. Definitions and Construction.
A. Definitions. In this Ordinance the following terms
have the following respective meanings unless the context hereof
clearly requires otherwise:
(1) Acquire or Acquisition: the design, construction,
reconstruction, purchase, lease, gift, transfer, assignment,
option to purchase, grant from the federal government or any
public body or other person, endowment, bequest, devise,
installation, condemnation, contract, or other acquirement or
other provision, or any combination thereof, of facilities,
other property, any project, or an interest therein, as
authorized by the Act.
(2) Act: part 4 of article 35 of title 31, Colorado
Revised Statutes, as amended.
(3) Additional Parity Bonds: any revenue bonds of the City
payable in whole or in part from Pledged Revenues, issued after
the date hereof, pursuant to and in accordance with the
provisions of Section 7B of this Ordinance and the Constitution
and laws of the State, having a lien on the Pledged Revenues
equal to or on a parity with the lien thereon of the Bonds.
(4) Bond Year : for the purpose of this Ordinance, the
twelve (12) months commencing on the first day of December of
any calendar year and ending on the last day of November of the
next succeeding calendar year .
(5) Bonds: those securities issued hereunder and
designated as the "City of Fort Collins, Colorado, Sewer Revenue
Bonds, Series 1984, " dated November 1, 1984, in the aggregate
principal amount of $11,000,000 .
(6) Capital Projects Fund: the special fund created by
Ordinance No. 28, 1980, of the City and referred to in
Section 5B hereof.
(7) City: the City of Fort Collins, Colorado.
-2-
(8) Commercial Bank : a state or national bank or trust
company which is a member of the Federal Deposit Insurance
Corporation which is located within the State, and such term
includes, without limitation, any Trust Bank , as herein defined.
(9) Com arable Bond Year : in connection with any Fiscal
Year , the Bon Year which ends in such Fiscal Year. For
example , for the Fiscal Year commencing on January 1 , 1985, the
Comparable Bond Year for the Bonds commences on December 1,
1984, and ends on November 30, 1985.
(10) Cost of the Project : all or any part of the cost of
Acquisition , Improvement and Equipment of all or any part of the
Project to be financed with the proceeds of the Bonds,
including , without limitation, all or any property, rights ,
easements , privileges, agreements, and franchises deemed by the
City to be necessary or useful and convenient therefor or in
connection therewith, interest or discount on the Bonds , costs
of issuance of the Bonds , engineering and inspection costs and
legal expenses , costs of financial , professional , and other
estimates and advice, contingencies , any administrative,
operating, and other expenses of the City prior to and during
such Acquisition, Improvement and Equipment, and additionally
during a period of not exceeding one year after the completion
thereof , as may be estimated and determined by the City Council,
and all such other expenses as may be necessary or incident to
the financing , Acquisition, Improvement, Equipment , and
completion of the Project or any part thereof , and the placing
of the same in operation, provision of reserves for working
capital , operation, maintenance, or replacement expenses , or for
payment or security of principal of or interest on the Bonds
during or after such Acquisition , Improvement or Equipment as
the City may determine, and also reimbursements to the City or
to any Person of any moneys theretofore expended for the
purposes of the City or other public body or to the federal
government of any moneys theretofore expended for or in
connection with the Project.
(11) Debt Service Requirements : the principal of, interest
on, and any premium due in connection with the redemption of the
Prior Parity Bonds , the Bonds , Additional Parity Bonds and any
other securities payable from the Pledged Revenues and
heretofore or hereafter issued, if any, or such part of such
securities as may be designated, as such principal , interest and
premiums become due.
(12) Debt Service Reserve Fund: the special fund created by
and designated in Ordinance No. 9, 1975, of the City as the
"City of Fort Collins Sewer Refunding Revenue Bonds Reserve
Fund" and referred to in Section 5F hereof.
(13) Equip or Equipment : the furnishing of all necessary or
desirable, related or appurtenant machinery and other
-3-
facilities , or any combination thereof, appertaining to any
property, project or interest therein , as authorized by the Act.
(14) Event of Default: any one of the events stated in
Section 10 hereof .
(15) Federal Securities : bills , certificates of indebted-
ness , 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 , or obligations issued or guaranteed as to principal
and interest by any agency or person controlled or supervised by
and acting as an instrumentality of the United States of America
pursuant to authority granted by the Congress of the United
States of America.
(16) Fiscal Year : the twelve (12) months commencing on the
first day of January of any calendar year and ending on the last
day of December of such calendar year or such other twelve (12)
month period as may from time to time be designated by the City
Council or by State statute as the Fiscal Year of the City.
(17) Improve or Improvement : the extension, enlargement or
thereof, of facilities
P P
betterment , or any combination here , other
property, any project, or any interest therein, as authorized by
reconstruction, replacement , re
the Act , but not including p air P
or other renewal of existing facilities that does not increase
the capacity of the Sewerage Facilities or improve the treatment
technology.
(18) Income: all income from rates , fees , tolls , and
charges and tap fees or any combination thereof for the services
furnished by, or the direct or indirect connection with , or the
use of the Sewerage Facilities, including , without limiting the
generality of the foregoing, minimum charges , charges for the
availability of service, disconnection fees, reconnection fees ,
and reasonable penalties for any delinquencies , except all sewer
trunk line assessments and sewer main line assessments , and all
income or other gain , if any, from any investment of Pledged
Revenues and of the proceeds of securities payable from Pledged
Revenues , unless the City Council otherwise provides by
ordinance.
(19) Independent Accountant : any certified public
accountant or any firm of such certified public accountants,
duly licensed to practice and practicing as such under the laws
of the State, appointed and paid by the City, who (a) is , in
fact, independent and not under the domination of the City or
the City Council, (b) does not have any substantial interest,
direct or indirect, in any of the affairs of the City, and
(c) is not connected with the City as a member , officer or
employee of the City Council, but who may be regularly retained
to make annual or similar audits of any books or records of the
City.
-4-
(20) Maximum Annual Debt Service Requirements: the maximum
Debt Service Requirements to be paid during any one Fiscal Year
for all Outstanding Prior Parity Bonds , Bonds, Additional Parity
Bonds or other additional Parity Securities for the period
beginning with the Fiscal Year in which such computation is made
and ending with the Fiscal Year in which all Prior Parity Bonds ,
Bonds , Additional Parity Bonds and other additional Parity
Securities cease to be Outstanding.
(21) Net Pledged Revenues : all Income remaining after the
deduction of Operation and Maintenance Expenses.
(22) Operation and Maintenance Expenses : such reasonable
and necessary current expenses of the City, paid or accrued, of
operating , maintaining and repairing the Sewerage Facilities as
may be determined by the City Council, and the term may include
at the City Council' s option, except as limited by contract or
otherwise limited by law, without limiting the generality of the
foregoing :
(a) Engineering , auditing, legal and other overhead
expenses of the City directly related and reasonably allocable
to the administration, operation and maintenance of the Sewerage
Facilities ;
(b) Insurance and surety bond premiums appertaining to
the Sewerage Facilities;
(c) The reasonable charges of any paying agent,
registrar , transfer agent or depository bank appertaining to the
Sewerage Facilities or any bonds or other securities issued
therefor ;
(d) Payments to pension, retirement, health and
hospitalization funds appertaining to the Sewerage Facilities ;
(e) Any taxes , assessments, franchise fees or other
charges or payments in lieu of the foregoing;
(f) Ordinary and current rentals of equipment or other
property;
(g) Contractual services , professional services ,
salaries , administrative expenses , and costs of labor
appertaining to the Sewerage Facilities and the cost of
materials and supplies used for current operation of the
Sewerage Facilities ;
(h) The costs incurred in the collection of all or any
part of the Pledged Revenues ;
(i) Any costs of utility services furnished to the
Sewerage Facilities by the City or otherwise.
-5-
} "Operation and Maintenance Expenses" does not include:
(a) Any allowance for depreciation;
(b) Any costs of reconstruction, Improvement,
extensions, or betterments;
(c) Any accumulation of reserves for capital
replacements;
(d) Any reserves for operation, maintenance, or repair
of the Sewerage Facilities;
(e) . Any allowance for the redemption of any bonds or
other securities, or the payment of any interest thereon;
(f) Any liabilities incurred in the Acquisition of any
properties comprising the Project or any existing Sewerage
Facilities or any combination thereof;
(g) Any other ground of legal liability not based on
contract.
(23) Operation and Maintenance Fund: the special fund
created in Section 5D hereof.
(24) Ordinance: this Ordinance No. 158, 1984, of the City,
finally adopted by the City Council on November 20, 1984 , which
provides for the issuance and delivery of the Bonds.
(25) Outstanding: when used with reference to the Prior
Parity Bonds, the Bonds, any Additional Parity Bonds or any
other designated securities of the City and as of any particular
date, all the Prior Parity Bonds, the Bonds, Additional Parity
Bonds or any such other securities payable in whole or in part
from the Pledged Revenues or otherwise pertaining to the Project
or the Sewerage Facilities, as the case may be, in any manner
theretofore and thereupon being executed and delivered, except
the following:
(a) Any Prior Parity Bond, Bond, Additional Parity
Bond or other security cancelled by the City, by the Paying
Agent, or otherwise on the City's behalf, at or before such date;
(b) Any Prior Parity Bond, Bond, Additional Parity
Bond or other security held by or on behalf of the City;
(c) Any Prior Parity Bond, Bond, Additional Parity
Bond or other security of the City for the payment or the
redemption of which moneys or Federal Securities sufficient to
meet all of the payment requirements of the principal of, the
interest on, and any premiums due in connection with the
redemption of such Prior Parity Bond, Bond, Additional Parity
-6-
Bond or other security to the date of maturity or any Redemption
Date thereof, shall have theretofore been deposited in escrow or
in trust with a Trust Bank for that purpose, as provided in and
required by Section 9 hereof; and
(d) Any lost, apparently destroyed, or wrongfully
taken Prior Parity Bond, Bond, Additional Parity Bond or other
security of the City in lieu of or in substitution for which
another bond or other security shall have been executed and
delivered.
(26) Owner : when used in conjunction with any Bond, or any
other designated security, the holder of any bearer instrument
or registered owner of any registered instrument.
(27) Parity Securities: bonds or securities payable from
the Pledged Revenues equally or on a parity with the Bonds.
(28) Person: not only a natural person, corporation, or
other legal entity, but also two or more natural persons,
corporations, or other legal entities acting jointly as a firm,
partnership, unincorporated association, joint ventures or
otherwise.
(29) Pledged Revenues: all or a portion of the Income. The
term indicates a source of revenues and does not necessarily
indicate all or any portion or other part of such revenues in
the absence of further qualification.
(30) Principal and Interest Fund: the special fund created
by and designated in Ordinance No. 9, 1975, of the City as the
"City of Fort Collins Sewer Refunding Revenue Bonds, Series
1975, Bond Fund" and referred to in Section 5E hereof.
(31) Prior Parity Bonds: those securities issued pursuant
to Ordinance No. 9, 1975 and Ordinance No. 101, 1982 ,
respectively, of the City and designated as the "City of Fort
respe y, y 9 Y
Collins, Colorado, Sewer Refunding Revenue Bonds, Series 1975,"
dated March 1, 1975, in the original aggregate principal amount
of $3,155,000, and the "City of Fort Collins, Colorado, Sewer
Revenue Bonds, Series 1982," dated October 1, 1982, in the
original aggregate principal amount of $2,200,000, having liens
on the Pledged Revenues equal to and on a parity with the lien
thereon of the Bonds.
(32) Project: that portion of the Sewerage Facilities for
the Acquisition of which the Bonds are issued hereunder, whether
such Acquisition is undertaken at one time or in stages.
(33) Purchaser : Boettcher & Company, Inc. , Denver ,
Colorado, and its associates, if any.
-7-
( 34) Redemption Date : the date fixed for the redemption
prior to maturity of any Bonds or other designated securities
payable from the Pledged Revenues in any notice of prior
redemption authorized by the City, or otherwise fixed and
designated by the City.
( 35) Redemption Price : when used with respect to a Bond or
other designated security payable from the Pledged Revenues , the
principal amount thereof plus the applicable premium, if any,
payable upon the redemption thereof prior to the stated maturity
date of such Bond or other security on a Redemption Date in the
manner contemplated in accordance with the terms of the Bond or
other security.
( 36) security or securities : when used with reference to
securities of the City, any bonds , certificates , notes ,
debentures , temporary bonds or other obligations of the City
issued by the City, or any other evidence of the advancement of
money to the City, as authorized by the Act or other applicable
State law and approved by the City Council.
(37) Sewer De reciation and Ca ita1 Im rovements Fund : the
special fun create by the C arter o t e ity an re erred to
P
in Section 5I hereof.
(38) Sewer Fund: the special fund created by Ordinance
No. 67, 1974 , of the City and referred to in Section 5C hereof.
( 39) Sewerage Facilities : any one or more of the various
devices used in the collection, treatment, or disposition of
sewage and industrial wastes of a liquid nature, including ,
without limitation, all inlets ; collection, drainage, or
disposal lines ; intercepting sewers ; sewage disposal plants ;
outfall sewers ; sewage lagoons ; all pumping , power , and other
equipment and appurtenances ; all extensions , improvements ,
remodeling , additions and alterations thereof ; any and all
rights or interests for such sewerage facilities ; and all other
necessary, incidental, or appurtenant properties , equipment , and
facilities relating to the foregoing and any such devices which
may be Sewerage Facilities under the Act.
(40) State: the State of Colorado.
(41) Subordinate Bonds or Subordinate Securities : bonds or
securities payable from the Pledged Revenues having a lien
thereon subordinate or junior to the lien thereon of the Bonds.
(42) Trust Bank : a Commercial Bank which is authorized to
exercise ands exercising trust powers.
B. Construction. This Ordinance, except where the context
by clear implication herein otherwise requires, shall be
construed as follows :
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(1) Words in the singular include the plural , and words in
the plural include the singular.
( 2) Words in the masculine gender include the feminine and
the neuter , and when the sense so indicates words of the neuter
gender refer to any gender.
(3) Articles , sections, subsections , paragraphs and
subparagraphs mentioned by number , letter , or otherwise,
correspond to the respective articles , sections, subsections ,
paragraphs and subparagraphs of this Ordinance so numbered or
otherwise so designated.
(4) The titles and headlines applied to articles , sections
and subsections of this Ordinance are inserted only as a matter
of convenience and ease in reference and in no way define or
of an provisions of this Ordinance.
h scope or intent
limit t o pY
Section 2. Necessity; Authority for Bonds .
Y A. Necessit The City has need for and desires to
Y
Acquire the Project for the benefit of the public health of its
inhabitants.
B. Authority For Bonds. The City Council is authorized by
the Act to issue bonds in anticipation of the collection of
revenues of sewerage facilities to pay the cost thereof. The
City Council has determined and hereby determines that all
limitations imposed by the Act upon the issuance of the Bonds
have been duly and completely met and satisfied.
Section 3. The Bonds.
A. Authorization. The City of Fort Collins , Colorado,
Sewer Revenue Bonds , Series 1984 , dated November 1 , 1984, in the
aggregate principal amount of $11 , 000, 000 , payable as to all
Debt Service Requirements solely out of Net Pledged Revenues are
hereby authorized to be issued, pursuant to the Act and the
terms of this Ordinance, and the City pledges irrevocably, but
not necessarily exclusively, the Net Pledged Revenues to the
payment of the Debt Service Requirements for the Bonds , the
1
proceeds of
the Bonds to be used solely to defray the Cost of
the Project.
B. Bond Details.
(1) Generally. The Bonds shall be issued in fully
registered form in denominations of $5, 000 or any integral
multiple thereof , provided that no Bond shall be issued in any
denomination larger than the aggregate principal amount maturing
on the maturity date of such Bond.
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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 each of the
following years and principal amounts and shall bear per a nto
interest from November 1, 1984, or the interest pay
ment 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 interest
rates:
Principal Per Annum
Years Amounts Interest Rate
1988 $175, 000 7.75%
1989 190,000 8.00
1990 200,000 8. 30
1991 220 ,000 8.60
1992 235,000 8. 80
1993 255,000 9.00
1994 275,000 9.20
1995 300,000 9.40
1996 325,000 9. 60
2004 4,075,000 10 .20
2009 4 , 750,000 10. 30
Said interest shall be payable on June 1, 1985, and semiannually
thereafter on the 1st day of December and the 1st day of June 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 is paid in
full.
The Debt Service Requirements of the Bonds shall be payable
in lawful money of the United States of America, to the
registered Owners of the Bonds by the Finance Director of the
City, who is hereby designated the paying agent for the Bonds.
The principal and the final interest shall be payable to the
registered Owner of each Bond upon presentation and surrender of
the Bond at maturity or upon prior redemption. Except as
heretofore and hereinafter provided, the interest shall be
payable to the registered Owner of each Bond determined as of
the close of business on the regular record date, which shall be
the fifteenth (15th) day of the calendar month next preceding
the interest payment 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 mailed to
such registered Owner at the address appearing on the
registration books of the City maintained by the City Clerk, who
is hereby designated the registrar for the Bonds. Any interest
not paid when due and any interest accruing after maturity shall
be payable to the registered Owner of each Bond entitled to
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receive such interest determined as of the close of business on
the special record date , which shall be fixed by the City for
such purpose, irrespective of any transfer of ownership of the
Bond subsequent to such special record date and prior to the
date fixed by the City for the payment of such interest, by
check or draft mailed 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 ten
(10) days prior to the special record date, to the Purchaser and
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 upon presentation and surrender of this Bond upon prior
redemption.
If the paying agent or registrar initially appointed
hereunder shall resign , or if the City shall reasonably
determine that said paying agent or registrar has become
incapable of fulfilling his or her duties hereunder, the City
may, upon notice mailed to each registered Owner of bonds at the
address last shown on the registration books , appoint a
successor paying agent or registrar , or both. Every such
successor paying agent or registrar shall be a Commercial Bank.
It shall not be required that the same institution serve as both
paying agent and registrar hereunder , but the City shall have
the right to have the same institution serve as both paying
agent and registrar hereunder.
(2) Redemption of Bonds Prior to Maturity. Bonds maturing
in the years 1995 , 1996, 2004 , and 2009 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, 1994, 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 Date Premium
December 1 , 1994 and June 1, 1995 2. 5%
December 1 , 1995 and June 1, 1996 2. 0%
December 1 , 1996 and June 1, 1997 1. 5%
December 1 , 1997 and June 1 , 1998 1. 0%
December 1 , 1998 and June 1, 1999 0. 5%
December 1 , 1999 and Thereafter None
Bonds maturing in the year 2004 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
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December 1 in each of the following years in each of the
following aggregate principal amounts :
Years Principal Amounts
1997 $360, 000
1998 390,000
1999 430, 000
2000 475, 000
2001 520, 000
2002 575, 000
2003 630, 000
2004 695, 000
Bonds maturing in the year 2009 shall also be subject to
mandatory sinking fund redemption prior to their maturity date,
specified below at a rice equal to the
by lot , on the dates spe p q
principal amount of each Bond so redeemed plus accrued interest
thereon to the Redemption Date. Such Bonds shall be redeemed on
December 1 in each of the following years in each of the
following aggregate principal amounts :
Years Principal Amounts
2005 $ 770, 000
2006 850, 000
2007 940, 000
2008 1, 040, 000
2009 1 ,150, 000
The Bonds shall also be subject to extraordinary redemption
prior to their respective maturity dates if the City determines
that there is no longer a need for all or a portion of the
Project and if the City has sufficient funds available to effect
such redemption, in whole or in part by calling as nearly as
practicable a pro rata share of the Bonds due on each maturity
date by lot within such maturity, on December 1 , 1987, at a
price equal to the principal amount of each Bond so redeemed
plus accrued interest thereon to the Redemption Date. In the
case of an extraordinary redemption in part, the amounts of the
mandatory sinking fund installments due with respect to Bonds
maturing in the years 2004 and 2009 shall be reduced as nearly
as practicable on a pro rata basis.
Bonds issued in denominations which are integral multiples
of $5, 000 may be redeemed in part. 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.
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Notice of redemption shall be given by the Finance Director
of the City in the name of the City by sending a copy thereof by
certified or registered first-class postage prepaid mail, at
least thirty (30) days prior to the redemption date, to the
Purchaser and 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
shall specify the number or numbers of the Bonds to be redeemed,
whether in whole or in part, and the date fixed for redemption
j 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. 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.
(3) Interest Rates. The maximum net effective interest
rate authorized for the Bonds is 15% per annum, and the actual
net effective interest rate for the Bonds is 10. 28372% per annum.
(4) Execution. The Bonds shall be executed by and on
behalf of the City with the facsimile signature of the Mayor,
shall bear a facsimile of the seal of the City, shall be
attested with the facsimile signature of the City Clerk, and
shall be countersigned with the manual signature of the Finance
Director of the City. Should any officer whose manual or
facsimile signature appears on the Bonds cease to be such
officer before delivery of the Bonds to the Purchaser , such
manual or facsimile signature shall nevertheless be valid and
sufficient for all purposes.
(5) Registration, Transfer and Exchange of Bonds. Upon
their execution and prior to their delivery the Bonds shall be
registered for the purpose of payment of principal and interest
in the office of the City Clerk, who is hereby designated as the
transfer agent for the Bonds. Thereafter , the Bonds shall be
transferable only upon the registration books of the City at the
office of the City Clerk or a successor transfer agent at the
request of the registered Owner thereof or his or its duly
authorized attorney-in-fact or legal representative. The City
Clerk 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 or its duly
authorized attorney-in-fact or legal representative with
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guaranty of signature satisfactory to the City Clerk, 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 settlor
and the beneficiary of the trust. Transfers shall be made
without charge, except that the City Clerk may also require
payment of a sum sufficient to defray any tax or other
governmental charge that may hereafter be imposed in connection
with any transfer of Bonds. No registration or transfer of any
Bond shall be effective until entered on the registration books
of the City maintained by the Clerk. The City Clerk 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 rate as the Bond or Bonds
surrendered. Such Bond or Bonds shall be dated as of their date
of execution by the Finance Director of the City. The City
Clerk 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. New Bonds delivered upon any transfer or
exchange shall be valid obligations of the City, evidencing the
same obligation 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 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
and interest on such Bond and for all other purposes , and all
such payments so made to such person or upon his 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.
(6) Lost Bonds. If any Bond shall have been lost,
destroyed ororwrongully 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 Ordinance No. 80, 1984, adopted by the City Council
on July 17, 1984.
(7) Recitals in Bonds. Each Bond shall recite in substance
that the Bond is payable solely from the Net Pledged Revenues
and that Bond does not constitute a debt of the City within the
meaning of any constitutional, statutory or Charter limitation.
Each Bond shall further recite that it is issued under the
authority of the Act and this Ordinance. Such recital shall
conclusively impart full compliance with all of the provisions
of the Act , and all Bonds issued containing such recital shall
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be incontestable for any cause whatsoever after their
registration and delivery for value.
(8) Form of Bonds . The Bonds shall be in substantially the
following form:
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[Form of Bond]
(Text of Face)
UNITED STATES OF AMERICA
STATE OF COLORADO COUNTY OF LARIMER
CITY OF FORT COLLINS
SEWER REVENUE BOND
SERIES 1984
No. R- $
Interest Maturity Original
Rate Date Date CUSIP
December 1, November 1, 1984
REGISTERED OWNER:
PRINCIPAL SUM:
The City of Fort Collins, in the County of Larimer and State
of Colorado, for value received, hereby promises to pay to the
Registered Owner (specified above) , or registered assigns,
solely from the special funds provided therefor, as hereinafter
set forth, the Principal Sum (specified above) , in lawful money
of the United States of America, on the Maturity Date (specified
above) , with interest thereon from November 1, 1984, 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 1st
day of June and the 1st day of December of each year , commencing
on June 1, 1985, 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 of this
Bond is not made as provided herein, interest shall continue at
the Interest Rate until the Principal Sum is paid in full.
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS
BOND SET FORTH ON THE REVERSE HEREOF.
This Bond and the Bonds of the series of which this is one
are special and limited obligations of the City payable solely
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out of and secured by an irrevocable pledge of the Net Pledged
Revenues , as more specifically provided in the Ordinance. This
Bond does not constitute a debt or an indebtedness of the City
within the meaning of any constitutional , statutory or City
charter provision or limitation of the State of Colorado. This
Bond is not payable in whole or in part from the proceeds of
general property taxes, and the full faith and credit of the
City is not pledged for the payment of the principal of or
interest on this Bond.
IN WITNESS WHEREOF, the City Council of the City of Fort
Collins , Colorado, has caused this Bond to be executed in its
name and on its behalf with the facsimile signature of the Mayor
of the City, to be sealed with a facsimile seal of the City, to
be signed and attested with the facsimile signature of the City
Clerk of the City, and to be countersigned with the manual
signature of the Finance Director of the City.
CITY OF FORT COLLINS , COLORADO
(FACSIMILE) By: (Facsimile Signature)
( SEAL ) Mayor
ATTEST:
(Facsimile Signature)
City Clerk Countersigned :
(Manual Signature)
Finance Director
DATED:
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 GIFT MIN ACT - Custodian
Cust Minor
under Uniform Gift to Minors Act
(State)
Additional abbreviations may also be used
though not on the above list.
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(Text of Reverse)
Bonds of this issue maturing in the years 1995, 1996, 2004,
and 2009 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, 1994,
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 Date Premium
December 1, 1994 and June 1 , 1995 2. 5%
December 1, 1995 and June 1 , 1996 2. 0%
December 1, 1996 and June 1 , 1997 1. 5%
December 1, 1997 and June 1, 1998 1. 0%
December 1, 1998 and June 1 , 1999 0. 5%
December 1, 1999 and Thereafter None
Bonds of this issue maturing in the year 2004
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 each of the following years in
each of the following aggregate principal amounts:
Years Principal Amounts
1997 $360, 000
1998 390, 000
1999 430, 000
2000 475,000
2001 520, 000
2002 575, 000
2003 630, 000
2004 695, 000
Bonds of this issue 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 each of the following years in each of
the following aggregate principal amounts:
Years Principal Amounts
2005 $ 770, 000
2006 850, 000
2007 940, 000
2008 1,040, 000
2009 1 ,150, 000
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The Bonds of this issue are also subject to extraordinary
redemption prior to their respective maturity dates if the City
determines that there is no longer a need for all or a portion
of the financial facilities and if the City has sufficient funds
available to effect such redemption, in whole or in part by
calling as nearly as practicable a pro rata share of the Bonds
due on each maturity date by lot within such maturity, on
December 1, 1987, at a price equal to the principal amount of
each Bond so redeemed plus accrued interest thereon to the
redemption date. In the case of an extraordinary redemption in
part, the amounts of the mandatory sinking fund installments due
with respect to Bonds maturing in the years 2004 and 2009 are to
be reduced as nearly as practicable on a pro rata basis.
This Bond may be redeemed in part if issued in a
denomination which is an integral multiple of $5,000. In such
case this Bond shall be surrendered in the manner provided for
transfer of ownership. Upon payment of the redemption price the
Registered Owner shall receive a new Bond or Bonds of authorized
denominations in aggregate principal amount equal to the
unredeemed portion of this Bond.
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 Finance Director of the City, as paying
agent. The principal and the final interest are payable to the
Registered Owner upon presentation and surrender of this Bond at
maturity or upon prior redemption. Except as heretofore and
hereinafter provided, the interest is payable to the Registered
Owner determined as of the close of business on the regular
record date, which shall be the fifteenth (15th) 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 mailed to the Registered Owner at the address
appearing on the registration books of the City. 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 shall be
fixed by the City 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 City for the payment of such
interest, by check or draft mailed 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 ten (10) days prior to the special record date, to
Boettcher & Company, Inc. , Denver , Colorado, and 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.
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Notice of redemption of any Bonds shall be given by the
Finance Director of the City in the name of the City by sending
a copy of such notice by certified or registered first-class
postage prepaid mail, at least thirty (30) days prior to the
redemption date, to Boettcher & Company, Inc. , Denver , Colorado,
and 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 shall specify the
number or numbers of the Bonds to be redeemed, whether in whole
or in part, 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. 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.
Payment of the principal of and interest on this Bond shall
be made solely from, and as security for such payment there are
irrevocably (but not exclusively) pledged, pursuant to the
ordinance authorizing the issuance of this Bond (the Ordinance) ,
two special funds thereby identified as the Principal and
Interest Fund and the Debt Service Reserve Fund, into which
funds the City has covenanted in the Ordinance to pay,
respectively, from certain revenues derived from the operation
and use of and otherwise pertaining to the Sewerage Facilities
of the City (the Income) , after provision is made only for the
payment of all necessary and reasonable current operation and
maintenance expenses, paid or accrued, of operating, maintaining
and repairing the Sewerage Facilities (such remaining revenues
being the Net Pledged Revenues) , sums sufficient to pay when due
the principal of, interest on, and any premium due in connection
with the redemption of the Bonds of the series of which this is
one and any prior or additional parity securities heretofore or
hereafter issued and payable from such revenues, and to
accumulate and maintain a specified reserve for such purposes.
In addition, the City may at its option augment such funds with
any other moneys of the City legally available for expenditure
for the purposes thereof as provided in the Ordinance.
It is hereby recited, certified and warranted that for the
payment of this Bond and of the interest hereon, the City has
created and will maintain said special funds and will deposit
therein, out of the Net Pledged Revenues, the amounts and
revenues specified in the Ordinance and out of said special
funds, as an irrevocable charge thereon, will pay this Bond and
the interest hereon, in the manner provided by the Ordinance.
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The Bonds of the series of which this is one are equitably
and ratably secured by a lien on the Net Pledged Revenues , and
such Bonds constitute an irrevocable and first lien (but not
necessarily an exclusive first lien) upon the Net Pledged
Revenues . Bonds and other types of securities , in addition to
the Bonds of the series of which this is one, subject to
expressed conditions, may be issued and made payable from the
Net Pledged Revenues having a lien thereon subordinate and
junior to the lien of the Bonds of the series of which this is
one or , subject to additional expressed conditions , having a
lien thereon on a parity with the lien of such Bonds in
accordance with the provisions of the Ordinance.
The City covenants and agrees with the Registered Owner of
this Bond that it will keep and will perform all of the
covenants of this Bond and of the Ordinance.
This Bond is one of a series authorized and issued for the
purpose of defraying the cost of acquiring certain Sewerage
Facilities , under the authority of and in full conformity with
the laws and the Constitution of the State of Colorado and the
Charter of the City, and pursuant to the Ordinance duly adopted
prior to the issuance of this Bond. This Bond is issued under
the authority of part 4 of article 35 of title 31 , Colorado
Revised Statutes , as amended, and this recital conclusively
imparts full compliance with all of the provisions of said
statute.
Reference is hereby made to the Ordinance, and to any and
all modificat
ions and amendments thereof, for a description of
the provisions , terms and conditions upon which the Bonds of the
series of which this is one are issued and secured, including,
without limitation, the nature and extent of the security for
the Bonds , provisions with respect to the custody and
application of the proceeds of the Bonds , the collection and
disposition of the revenues and moneys charged with and pledged
to the payment of the principal of , interest on, and premium due
in connection with the redemption of the Bonds , the terms and
conditions on which the Bonds are issued, a description of the
special funds referred to above and the nature and extent of the
security and pledge afforded thereby for the payment of the
principal of, interest on, and premium due in connection with
the redemption of the Bonds, and the manner of enforcement of
said pledge, as well as the rights , duties , immunities and
obligations of the City and the members of its Council and also
the rights and remedies of the registered owners of the Bonds.
To the extent and in the respects permitted by the
Ordinance, the provisions of the Ordinance, or any instrument
amendatory thereof or supplemental thereto, may be modified or
amended by action of the City taken in the manner and subject to
the conditions and exceptions provided in the Ordinance. The
pledge of revenues and other obligations of the City under the
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• 0
Ordinance may be discharged at or prior to the maturity or prior
redemption of the Bonds upon the making of provision for the
payment of the Bonds on the terms and conditions set forth in
the Ordinance.
It is hereby recited, certified and warranted that all the
requirements of law have been fully complied with by the proper
officers of the City in the issuance of this Bond; that it is
issued pursuant to and in strict conformity with the
Constitution and all other laws of the State of Colorado,
including the home rule charter of the City, and with the
Ordinance and any instrument supplemental thereto ; that this
Bond does not contravene any constitutional , charter or
statutory limitation of the State of Colorado; and that this
Bond and each of the other Bonds of the series of which this is
one are issued under the authority of the Ordinance.
This Bond is transferable only upon the registration books
of the City at the office of the City Clerk or a successor
registrar , at the request of the Registered Owner or his 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 or its duly
authorized attorney-in-fact or legal representative with
guaranty of signature satisfactory to the City Clerk , 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 settlor
and beneficiary of the trust. Transfers shall be made without
charge, except that the City Clerk may also require payment of a
sum sufficient to defray any tax or other governmental charge
that may hereafter be imposed in connection with any transfer of
Bonds. No registration or transfer of this Bond shall be
effective until entered on the registration books of the City.
The City Clerk 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
rate as the Bond or Bonds surrendered. Such Bond shall be dated
its date of execution by the Finance Director of the City. The
City Clerk shall not be 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
or p selected f 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. The City may deem
and treat the person 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 and interest on
this Bond and for all other purposes , and all such payments so
made to such person or upon his order shall 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 shall not be affected by any notice to the contrary.
-22-
(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)
the attached Bond and does hereby irrevocably constitute and
appoint , . or its
successor , to transfer said 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 the attached Bond in
every particular without
alteration or enlargement or
any change whatever .
[End of Form of Bond]
-23-
C. Bonds Equally Secured. The covenants and agreements
herein set forth to be performed on behalf of the City shall be
for the equal benefit, protection and security of the owners of
any and all of the Bonds, all of which, regardless of the time
or times of their maturity, shall be of equal rank without
preference, priority or distinction of any of the Bonds over any
other thereof, except as otherwise expressly provided in or
pursuant to this Ordinance.
D. Special Obligations. All of the Bonds, as to all Debt
Service Requirements thereof, shall be payable and collectible
solely out of the Net Pledged Revenues, which Net Pledged Rev-
enues are hereby so pledged for that purpose; the Owner or
Owners of any of the Bonds may not look to any general or other
fund of the City for the payment of the Debt Service
Requirements, except the special funds pledged therefor; the
Bonds shall not constitute a debt or indebtedness of the City
within the meaning of any constitutional, charter or statutory
provision or limitation of the State; and the Bonds shall not be
considered or held to be general obligations of the City but
shall constitute the special and limited obligations of the
City. The Bonds are not payable in whole or in part from the
proceeds of general property taxes, and the full faith and
credit of the City is not pledged for payment of the Bonds.
Section 4. Sale of Bonds.
A. Necessity of Project and Issuance of Bonds. It is
necessary and for the best interests of the City and the
inhabitants thereof that the City Acquire the Project and defray
all or a portion of the Cost of the Project by issuing the Bonds.
B. Public Sale. The City has heretofore mailed official
Notice of Bond Sale for the Bonds. Sealed bids for the Bonds
were received and opened by the Finance Director on October 30,
1984, and it was determined that the Purchaser was the lowest
and best bidder therefor.
C. Award of Contract. The contract for the purchase of
the Bonds is hereby awarded to the Purchaser at the price
specified in the Purchaser ' s bid and upon the terms set forth in
this Ordinance.
Section 5. Funds and Accounts Adopted or Created by
Ordinance.
A. Disposition of Bond Proceeds and other Revenues;
Security For Bonds. The proceeds from the sale of the Bonds and
the Pledged Revenues shall be deposited by the City in the funds
described in this Section 5, to be accounted for in the manner
and priority set forth in this Section 5.
-24-
The validity of the Bonds shall not be dependent on nor be
affected by the validity or regularity of any proceedings
relating to the Project or any part thereof. The Purchaser of
the Bonds, any associate thereof , and any subsequent Owner of
any Bonds shall in no manner be responsible for the application
or disposal by the City or by any of its officers , agents and
employees of the moneys derived from the sale of the Bonds or of
any other moneys designated
d si nated in th
is Section 5.
Until the proceeds of the Bonds are applied as provided in
this Section 5 and used to defray the Cost of the Project from
time to time, the proceeds of the Bonds shall be subject to a
lien thereon and pledge thereof for the benefit of the Owners of
the Bonds from time to time as provided in this Section 5.
The Pledged Revenues, and all moneys and securities paid or
to be paid to or held or to be held in any fund or account
hereunder , are hereby pledged to secure the payment of the Debt
Service Requirements of the Bonds, subject to the provisions
herein relating to the Capital Projects Fund and subject to the
application of the Pledged Revenues for the payment of Debt
Service Requirements of Parity Securities ; and this pledge shall
be valid and binding from and after the date of the first
delivery of the Bonds , and the moneys, as received by the City
and hereby pledged, shall immediately be subject to the lien of
this pledge without any physical delivery thereof , any filing ,
or further act , and the lien of this pledge and the obligation
to perform the contractual provisions hereby made shall have
priority over any or all other obligations and liabilities of
the City (except as herein otherwise expressly provided) , and
the lien of this pledge shall be valid and binding as against
all parties having claims of any kind in tort, contract or
otherwise against the City (except as herein otherwise expressly
provided) , irrespective of whether such parties have notice
thereof.
B. Capital Projects Fund. The proceeds of the Bonds ,
except the sums required in Section 5E and 5F hereof to be
deposited in the Principal and Interest Fund and the Debt
Service Reserve Fund, shall be deposited in the Capital Projects
Fund and shall be maintained in a separate special account
therein and used and withdrawn only as provided in this
Section 5B.
The proceeds of the Bonds so deposited in the Capital
Projects Fund, except as herein otherwise expressly provided,
shall be used and paid out from time to time solely for the
purpose of paying the Cost of the Project and are pledged
therefor . Any such proceeds remaining in the Capital Projects
Fund after completion of the Acquisition of the Project shall be
deposited in the Principal and Interest Fund and used for the
purposes of the Principal and Interest Fund or shall be used to
the extent feasible to call and redeem the Bonds in advance of
-25-
maturity. The City shall use any proceeds of the Bonds credited
to the Capital Projects Fund , without further order , to pay the
Debt Service Requirements of the Bonds as the same become due
whenever and to the extent moneys in the Principal and Interest
Fund and the Debt Service Reserve Fund or moneys otherwise
available therefor are insufficient for that purpose, unless
such proceeds shall be needed to defray obligations accrued and
to accrue under any contracts then existing and pertaining to
the Project. Any moneys so used shall be restored to the
Capital Projects Fund from the first Pledged Revenues thereafter
received and not needed to meet the requirements provided in
Sections 5E and 5F hereof.
C. Sewer Fund. Except as otherwise provided herein, the
entire Income, upon receipt thereof from time to time by the
City, shall be set aside and credited immediately to the Sewer
Fund. In addition, the City may at its option credit to the
Sewer Fund any other moneys of the City legally available for
expenditure for the purposes of the Sewer Fund as provided
herein.
The Sewer Fund shall be administered and the moneys on
deposit therein shall be deposited and applied in the following
order of priority:
(1) First, to the Operation and Maintenance Fund to
pay Operation and Maintenance Expenses in the manner set forth
in Section 5D;
(2) second, to the Principal and Interest Fund to pay
the Debt Service Requirements of the Bonds , the Prior Parity
Bonds, Additional Parity Bonds and any other additional Parity
Securities then Outstanding in the manner set forth in
Section 5E;
( 3) Third , to the Debt Service Reserve Fund , in the
manner set forth in Section 5F;
(4) Fourth, to the payment of the Debt Service
Requirements of Subordinate Bonds or other Subordinate
Securities in accordance with Section 5H;
(5) Fifth, to the Sewer Depreciation and Capital
Improvements Fund, in the manner set forth in Section 5I ; and
(6) Sixth, to be used in accordance with Section 5J.
D. Operation and Maintenance Fund. As a first charge on
the Sewer Fund, there shall be credited from time to time within
each Fiscal Year , to the Operation and Maintenance Fund, moneys
sufficient to pay the Operation and Maintenance Expenses of the
Sewerage Facilities as they become due and payable, and
thereupon the Operation and Maintenance Expenses shall be
promptly paid.
-26-
Any surplus remaining in the Operation and Maintenance Fund
at the end of the Fiscal Year and not needed for Operation and
Maintenance Expenses, shall be transferred to the Sewer Fund and
used for the purposes thereof.
E. Principal and Interest Fund. The City shall deposit in
the Principal and Interest Fund, forthwith upon receipt of the
proceeds of the Bonds, interest accrued thereon from their date
to the date of delivery thereof to the Purchaser , to apply to
the payment of interest on the Bonds as the same becomes due
after their delivery.
Subject to the payments required by Section 5D, from any
moneys remaining in the Sewer Fund, there shall be credited to
the Principal and Interest Fund the following:
(1) Interest Payments. Monthly, commencing January 1,
1985, an amount equal to one-sixth of the next maturing
installment of interest on the Prior Parity Bonds and the Bonds
and such amounts for interest on any Additional Parity Bonds and
any other Parity Securities then Outstanding as the ordinances
authorizing the issuance thereof shall provide, to the extent
that other funds are not on deposit therein and available
therefor , so that there are moneys therein sufficient to pay
such interest when due; and
(2) Principal Payments. Monthly, commencing
January 1, 1985, an amount equal to one-sixth of the next
maturing installment of principal of the Prior Parity Bonds
dated March 1, 1975, an amount equal to one-twelfth of the next
maturing installment of the principal of the Prior Parity Bonds
dated October 1, 1982, and the Bonds, and such amounts for
principal on any Additional Parity Bonds and any other Parity
Securities then Outstanding as the ordinances authorizing the
issuance thereof shall provide, to the extent that other funds
are not on deposit therein and available therefor , so that there
are moneys therein sufficient to pay such principal when due.
The moneys credited to the Principal and Interest Fund shall
be used to pay the Debt Service Requirements of the Prior Parity
Bonds, the Bonds, any Additional Parity Bonds and any other
Parity Securities then Outstanding , promptly as such Debt
Service Requirements become due, except as otherwise provided in
Sections 5G and 9 hereof . The Principal and Interest Fund shall
be maintained as a sinking fund for the mandatory redemption of
Bonds maturing in the years 2004 and 2009. Any mandatory
sinking fund redemption shall be treated as a maturity for
purposes of this Section 5E.
F. Debt Service Reserve Fund. The City shall deposit in
the Debt Service Reserve Fund, from the proceeds of the Bonds,
forthwith upon receipt thereof, the sum of $1,250,000. Said sum
and any other moneys required to be deposited in the Debt
Service Reserve Fund shall be set aside, accumulated and, if
-27-
necessary, reaccumulated from time to time, and maintained as provided n
continuing reserve to be used, except as hereinafter prevent
this Section 5F and Sections 5G and 9 hereof, only
deficiencies in payment of the Debt Service Requirements of the
Prior Parity Bonds, the Bonds, any Additional Parity
result resulting Bonds
fand
Securities then Outstanding
rom
any other Parity Secu
failure to deposit nt h
such Debt rP Interest
F
Service Requirements as the
sufficient funds to pay
same accrue.
If at any time the City shall for any reason fail to pay
into the Principal and Interest Fund the full amount above
stipulated, then an amount shall be paid - into the Principal and
Interest Fund at such time from the Debt Service Reserve Fund
equal to the difference between that paid from sot e Sewer
and
and the full amount so stipulated. The money
be
replaced to the Debt Service Reserve Fund from the first moneys
credited to the Sewer Fund thereafter received and not required
to be otherwise applied by Sections 5D and 5E hereof. If
Additional Bonds or other Parity Securities (other than the
Bonds) are Outstanding and the ordinances authorizing the
issuance of those securities require the replacement of moneys
in a reserve account therefor , then the moneys replaced in the
Debt Service Reserve Fund shall be replaced on a pro rata basis
based upon the principal amount of the then Outstanding Bonds
and the total principal amount of the then Outstanding Prior
Parity Bonds, Additional Parity Bonds or other Parity
Securities, including the Bonds, as moneys become available
therefor .
an time the City shall for any reason fail to pay
f at stipulated
I y the full amount
into the Debt Service Reserve Fund
herein from the moneys credited to the Sewer Fund, the
difference between the amount paid and the amount so stipulated
shall in a like manner be paid therein from the first moneys
credited the
otherwise by Sections thereafter
5D andreceived
hereof not required
to be applied
G. Termination of Deposits; Use of Moneys in Principal and
Interest Fund and Debt Service Reserve Fund. No pay
ma into the Principal an Interest Fun or the Debt Service
a
Reserve Fund, or both, if the amount in the Principal and
Interest Fund and the amount in the Debt Service Reserve Fund
total a sum at least equal to the entire amountnds and any
of the
Outstanding Prior Parity Bonds, the Outstanding
Outstanding Additional Parity Bonds and Parity Securities, as to
all Debt Service Requirements, to their respective maturities or
to any Redemption Date or Redemption Dates on which the Cis
ity
shall have exercised or shall have obligated
itself
to tyxdatese
erc
its option to redeem, prior to their n respective
vonal Parity Bonds
any Prior Parity Bonds, any Bonds, a y
and any other Parity Securities, then Outstanding and thereafter
maturing , both accrued and not accrued (provided that, solely
for the purpose of this Section 5G, there shall be deemed to be
-28-
a credit to the Debt Service Reserve Fund of moneys , Federal
Securities and bank deposits , or any combination thereof ,
accounted for in any other fund or account of the City and
restricted solely for the purpose of paying the Debt Service
Requirements) , in which case moneys in the Principal and
Interest Fund and the Debt Service Reserve Fund in an amount,
except for any known interest or other gain to accrue from any
investment or deposit of moneys pursuant to Section 6B hereof
from the time of any such investment or deposit to the time or
respective times the proceeds of any such investment or deposit
shall be needed for such payment , at least equal to such Debt
Service Requirements, shall be used together with any such gain
from such investments and deposits solely to pay such Debt
Service Requirements as the same become due; and any moneys in
excess thereof in the Principal and Interest Fund and the Debt
Service Reserve Fund and any other moneys derived from the
Pledged Revenues or otherwise pertaining to the Sewerage
Facilities may be used in any lawful manner determined by the
City.
The moneys in the Principal and Interest Fund and in the
Debt Service Reserve Fund shall be used solely and only for the
purpose of paying the Debt Service Requirements of the Prior
Parity Bonds , the Bonds , any Additional Parity Bonds and any
other Parity Securities hereafter authorized and Outstanding
from time to time ; but any moneys at any time in excess of the
minimum amount required to be maintained in the Debt Service
Reserve Fund may be withdrawn therefrom, and transferred from
time to time to the Sewer Fund and distributed in the same
manner as other moneys in the Sewer Fund.
H. Payment of Additional Subordinate Securities.
Subsequent to fully providing for the payments required to be
made by Sections 5A through 5F hereof for a given Fiscal Year ,
any moneys remaining in the Sewer Fund for such Fiscal Year may
be used by the City for the payment of Debt Service Requirements
of additional Subordinate Securities payable from the Pledged
Revenues and hereafter authorized to be issued in accordance
with this Ordinance and any other provisions herein supplemental
thereto, including reasonable reserves for such Subordinate
Securities , as the same accrue ; but the lien of such Subordinate
Securities on the Pledged Revenues and the pledge thereof for
the payment of such Subordinate Securities shall be subordinate
to the lien and pledge of the Prior Parity Bonds , the Bonds , any
Additional Parity Bonds and any other additional Parity
Securities as herein provided. (Any Additional Parity Bonds or
other additional Parity Securities , but not any Subordinate
Bonds or Subordinate Securities , shall be payable from the
Principal and Interest Fund and the Debt Service Reserve Fund
pursuant to Sections 5E through 5G hereof. )
I . Sewer Depreciation and Capital Improvements
Fund. Subject to the payments required by Sections SD through
-29-
5H, there shall be deposited in the Sewer Depreciation and
Capital Improvements Fund any moneys remaining in the Sewer Fund
at the end of each Fiscal Year. The moneys in the Sewer
Depreciation and Capital Improvements Fund shall be set aside,
accumulated, and, if necessary, reaccumulated from time to time,
and maintained for the purpose of paying the costs of required
renewals , replacements , extraordinary repairs , extensions,
improvements , enlargements , and betterments to the Sewerage
Facilities. Moneys in excess of those required to be maintained
in the Sewer Depreciation and Capital Improvements Fund may be
withdrawn therefrom and transferred to the Sewer Fund and
distributed in the manner provided in Section 5J.
J. Use of Remaining Revenues. After the payments required
to be made by Sections 5A through 5I hereof are made, at the end
of any Fiscal Year , or whenever in any Fiscal Year there shall
have been credited to the Principal and Interest Fund , the Debt
Service Reserve Fund, and the Sewer Depreciation and Capital
Improvements Fund all amounts required to be deposited in those
special funds at that time, as herein provided, any remaining
moneys credited to the Sewer Fund may be used for any one or any
combination of lawful purposes as the City may from time to time
determine.
K. Bud et and A ro riation of Sums . The sums provided to
are hereby
q PP P
make the payments specified in this Section 5 y
appropriated for said purposes , and said amounts for each year
shall be included in the annual budget and the appropriation
ordinance or measures to be adopted or passed by the City
Council in each year respectively while any of the Bonds , either
as to principal or interest , are Outstanding and unpaid. No
provisions of any constitution, statute, ordinance, resolution,
or other order or measure enacted after the issuance of the
Bonds shall in any manner be construed as limiting or impairing
the obligation of the City to keep and perform the covenants
contained in this Ordinance so long as any of the Bonds remain
Outstanding and unpaid. Nothing herein shall prohibit the City
Council from appropriating other funds of the City legally
available for this purpose to the Sewer Fund for the purposes
thereof.
Section 6. General Administration of Funds .
A. Places and Times of Deposits. Each of the special
funds created or adopted in Section 5 hereof shall be maintained
in a Commercial Bank kept separate and apart from all other
accounts or funds of the City as trust accounts solely for the
purposes herein designated therefor. For purposes of investment
of moneys , nothing herein prevents the commingling of moneys
accounted for in any two or more such accounts or funds
pertaining to the Pledged Revenues. Such accounts or funds
shall be continuously secured to the fullest extent required or
permitted by the laws of the State for the securing of public
-30-
funds and shall be irrevocable and not withdrawable by anyone
for any purpose other than the respective designated purposes of
such accounts or funds. Each periodic payment shall be credited
to the proper account or fund not later than the date therefor
herein designated, except that when any such date shall be a
Saturday, a Sunday or a legal holiday, then such payment shall
preceding business day.
be made on or before the next pre g Y
B. Investment of Funds. Any moneys in any fund
established in Section 5 hereof may be deposited, invested, or
reinvested in any manner permitted by law. Securities or
obligations purchased as such an investment shall either be
subject to redemption at any time at face value by the holder
thereof at the option of such holder , or shall mature at such
time or times as shall most nearly coincide with the expected
need for moneys from the fund in question. Securities or
obligations so purchased as an investment of moneys in any such
fund shall be deemed at all times to be a part of the applicable
fund; provided that the interest accruing on such investments
and any profit realized therefrom shall be credited to the Sewer
Fund , and any loss resulting from such investments shall be
charged to the particular fund in question. The City shall
present for redemption or sale on the prevailing market any
securities or obligations so purchased as an investment of
moneys in a given fund whenever it shall be necessary to do so
in order to provide moneys to meet any required payment or
transfer from such fund. The City shall not invest any moneys
accounted for hereunder if any such investment would contravene
the covenant concerninq arbitrage in Section 8U hereof.
C. No Liability for Losses Incurred in Performing Terms of
Ordinance. Neither the City nor any officer of the City shall
be liable or responsible for any loss resulting from any
investment or reinvestment made in accordance with this
Ordinance.
D. Character of Funds. The moneys in any fund herein
authorized shall consist of lawful money of the United States or
investments permitted by Section 6B hereof or both such money
and such investments. Moneys deposited in a demand or time
deposit account in or evidenced by a certificate of deposit of a
Commercial Bank pursuant to Sections 6A and 6B hereof ,
appropriately secured according to the laws of the State, shall
be deemed lawful money of the United States.
E. Accelerated Payments Optional. Nothing contained
herein prevents the accumulation in any fund herein designated
of any monetary requirements at a faster rate than the rate or
minimum rate, as the case may be, provided therefor , but no
payment shall be so accelerated if such acceleration shall cause
a default in the payment of any obligation of the City
pertaining to the Pledged Revenues. Nothing herein contained
requires in connection with the Pledged Revenues received in any
-31-
Fiscal Year the accumulation in any fund or account for the
payment in the Comparable Bond Year of Debt Service Requirements
due in connection with any series of bonds or other securities
payable from the Pledged Revenues and heretofore , herein or
hereafter authorized , in excess of such Debt Service
Requirements due in such Comparable Bond Year , or in excess of
any reserves required to be accumulated and maintained therefor ,
and of any existing deficiencies , and payable from such fund or
account, as the case may be, except as may be otherwise provided
herein.
Section 7. Priorities ; Liens ; Issuance of Additional Bonds .
A. First Lien on Pledged Revenues ; Equality of Bonds.
Except as expressly provided in this Ordinance with respect to
the Prior Parity Bonds , Additional Parity Bonds , Parity
Securities and Subordinate Securities , the Pledged Revenues
shall be and hereby are irrevocably pledged and set aside to pay
the Debt Service Requirements of the Bonds.
The Bonds constitute an irrevocable and first lien (but not
necessarily an exclusive first lien) upon the Pledged Revenues.
The Prior Parity Bonds, the Bonds, any Additional Parity
Bonds and any other Parity Securities hereafter authorized to be
issued and from time to time Outstanding are equitably and
ratably secured by a lien on the Pledged Revenues and shall not
be entitled to any priority . one over the other in the
application of the Pledged Revenues regardless of the time or
times of the issuance thereof, it being the intention of the
City Council that there shall be no priority among the Prior
Parity Bonds, the Bonds, any Additional Parity Bonds and any
other Parity Securities , regardless of the fact that they may be
actually issued and delivered at different times.
B. Issuance of Parit Securities. Nothing herein, subject
to the limitations state in Sections 7G and 711 hereof, prevents
the issuance by the City of Additional Parity Bonds or other
additional Parity Securities payable from the Pledged Revenues
and constituting a lien on the Pledged Revenues on a parity
with, but not prior or superior to, the lien thereon of the
Bonds , or prevents the issuance of bonds or other securities
refunding all or a part of the Bonds , except as provided in
Sections 7F and 7H hereof ; but before any such Additional Parity
Bonds or other additional Parity Securities are authorized or
actually issued (excluding (i) any parity refunding securities
refunding the Bonds , (ii) any Parity Securities refunding
Additional Parity Bonds, or additional Parity Securities , and
(iii) any Subordinate Securities as permitted in Section 7D
hereof) the following provisions must first be satisfied:
( 1) Absence of Default. At the time of the delivery
of and payment for the Additional Parity Bonds as provided in
Section 7H hereof, the City shall not be in default in making
-32-
any payments required by Section 5 hereof. Such absence of
default shall be certified in writing by the Director of Finance.
(2) Historic Revenues Test. As certified by the
Director of Finance, either i the Net Pledged Revenues derived
in the last complete Fiscal Year immediately preceding the date
of the issuance of such Additional Parity Bonds or other Parity
Securities , or (ii) the Net Pledged Revenues derived in the
period of twelve (12) consecutive and complete calendar months
ending not later than the second calendar month prior to the
month of issuance of Additional Parity Bonds or other Parity
Securities and ending not earlier than the end of the last
preceding Fiscal Year , shall have been sufficient to pay an
amount at least equal to 120% of the Maximum Annual Debt Service
Requirements for all Outstanding Prior Parity Bonds and the
Bonds.
(3) Projected Revenues Test. As estimated by a
competent feasibility and rate engineer, either (i) the Pledged
Revenues expected to be derived in the next complete Fiscal Year
immediately succeeding the date of the completion of the
facilities to be financed with the proceeds of such Additional
Parity Bonds or other Parity Securities , or (ii) the Pledged
Revenues expected to be derived in the period of twelve (12)
consecutive and complete calendar months beginning not later
than the second calendar month immediately succeeding the date
of the completion of the facilities to be financed with the
proceeds of such Additional Parity Bonds or other Parity
Securities shall be sufficient to pay an amount at least equal
to the estimated Operation and Maintenance Expenses for the
Sewerage Facilities for such period plus 120% of the Maximum
Annual Debt Service Requirements for all Outstanding Prior
Parity Bonds, Bonds , Additional Parity Bonds or other Parity
Securities and the Additional Parity Bonds or other Parity
Securities proposed to be issued.
(4) Adjustment of Pledged Revenues. In the
computations of the historic and projected revenues tests in
Section 7B (2) and Section 7B (3) hereof , the amount of the Income
for either period shall be decreased and may be increased by the
amount of loss or gain, which gain or loss results or will
result from any change in any schedule of rates , fees , tolls and
charges and tap fees constituting Pledged Revenues established
during such period.
(5) Increases in Operation and Maintenance
Expenses. In determining the amount of Pledged Revenues as set
forth in Section 7B (3) hereof, consideration shall be given to
any probable increase (but not reduction) in the Operation and
Maintenance Expenses of the Sewerage Facilities , as reasonably
estimated and certified by the City Council, that will result
from the expenditure of the proceeds of the proposed Additional
Parity Bonds or other Parity Securities or that otherwise are
likely to result from other known causes , such as inflation.
-33-
(6) Reduction of Annual Requirements. The Maximum
Annual Debt Service Requirements (including as such a
requirement, the amount of any prior redemption premiums due on
any Redemption Date as of which the City shall have exercised or
shall have obligated itself to exercise its prior redemption
option by a call of bonds for redemption) shall be reduced to
the extent that Debt Service Requirements are scheduled to be
paid in each of the respective Bond Years with moneys held in
trust or in escrow for that purpose by any Trust Bank located
within or without the State, including the known minimum yield
from any investment of such moneys in Federal Securities and
bank deposits , including any certificate of deposit.
(7) Authorized Purposes. The Additional Parity Bonds
or other additional Parity Securities are issued solely for the
purpose of paying the cost of the Project or Improvements to,
Equipment of or reconstruction, replacement, repair or other
renewal of the Sewerage Facilities.
C. Certification of Revenues. In the cases of
certification of the absence of default as required by Section
7B (1) hereof and of the computation of the historic and
projected revenue tests provided in Sections 7B (2) and 7B (3)
hereof, and when adjusted in the manner provided in Sections
7B (4) , 7B (5) and 7B (6) , the specified and required written
certifications by the Director of Finance or the competent
feasibility and rate engineer that the City is not in default as
ease y g Y
provided in Section 7B (1) hereof or that such annual revenues
are sufficient to pay such amounts as provided in Sections 7B (2)
or 7B ( 3) hereof shall be conclusively presumed to be accurate in
determining the right of the City to authorize issue, sell and
deliver Additional Parity Bonds or other additional Parity
Securities on a parity with the Bonds.
D. Subordinate Securities Permitted. Nothing herein,
subject to the limitations stated in Sections 7G and 7H hereof,
prevents the City from issuing additional bonds or other
additional securities for any lawful purpose payable from the
Pledged Revenues and having a lien thereon subordinate, inferior
and junior to the lien thereon of the Bonds.
E. Superior Securities Prohibited . Nothing herein permits
the City to issue additional bonds or other additional
securities or to enter into any other contract or obligation
payable from the Pledged Revenues and having a lien thereon
prior and superior to the lien thereon of the Bonds.
F. Refunding Bonds. At any time after the Bonds , or any
part thereof , are issued and remain Outstanding , if the City
Council shall find it desirable to refund any Outstanding Bonds ,
or other Outstanding securities payable from and constituting a
lien upon any Pledged Revenues , such Bonds , or other securities ,
of may be refunded regardless of whether the
or any part there y g
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priority of the lien for the payment of the refunding securities
on the Pledged Revenues is different from the priority of the
lien for the payment of the refunded securities (except as
provided in Section 7E hereof) ; provided that the issuance of
any such refunding bonds or other refunding securities shall be
subject to the following additional requirements and conditions :
(1) Surrender for Payment. The Bonds or other
securities to be refunded , at the time or times of their
required surrender for payment on refunding , shall either then
mature or shall be then callable for prior redemption at the
City' s option upon proper call, unless the Owner or Owners of
all such Bonds or securities consent to such surrender and
payment.
(2) Partial Refundings . In the event of a refunding
of less than all o t e Outstanding Bonds or less than all of
the Outstanding securities of a particular issue thereof, the
refunding bonds or refunding securities issued pursuant to this
Section 7F shall enjoy complete equality of lien upon the
Pledged Revenues with the unrefunded portion of the Outstanding
Bonds or unrefunded portion of any other Outstanding
securities. In addition, except as otherwise provided in the
ordinance of the City Council providing for the issuance of such
refunding bonds or securities , the Owners of such refunding
bonds or refunding securities shall be subrogated to, have, and
enjoy all of the rights and privileges previously had and
enjoyed by the Owner or Owners of the Bonds or securities
refunded thereby.
(3) Limitations Upon Refundings . Any refunding bonds
or refunding securities payable from any Pledged Revenues shall
be issued with such details as the City may by ordinance or
other instrument provide, subject to the provisions of Sections
7G and 7H hereof , and subject to the inclusion of the applicable
rights and privileges designated in Section 7F (2) , but without
any impairment of any contractual obligation imposed upon the
City by any proceedings authorizing the issuance of any
unrefunded portion of the Outstanding Bonds or any unrefunded
portion of other Outstanding securities.
(4) Protection of Bonds or Additional Bonds Not
Refunded. If only a part of the Outstanding Bonds or other
Outstanding securities of any issue or issues payable from the
Pledged Revenues is to be refunded, then such part of said
securities may not be refunded without the consent of the Owner
or Owners of the unrefunded portion of such securities , unless :
(a) Requirements Not Increased. For the period
of time up to and including the last maturity date or last
Redemption Date, if any, whichever is later , of the Outstanding
unrefunded Bonds or of any Outstanding unrefunded securities ,
the refunding bonds or refunding securities do not in any Bond
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Year cause the aggregate principal and interest due on such
refunding bonds or refunding securities and the Outstanding
unrefunded Bonds and any Outstanding unrefunded securities to
exceed the aggregate principal and interest which would have
been due in any such Bond Year but for the issuance of the
refunding bonds or refunding securities , and unless the lien of
the refunding bonds or refunding securities on the Pledged
Revenues is not raised to a higher priority than the lien
thereon of the Bonds or securites refunded thereby; or
(b) Subordinate Lien . The lien on any Pledged
Revenues for the payment of the refunding bonds or refunding
securities is subordinate to each such lien for the payment of
any Bonds or securities not refunded ; or
(c) _Default and Coverage Test. The refunding
bonds or refunding securities are issued in compliance with the
Pledged Revenue coverage requirements of Section 7B hereof and
the requirement of Section 7C hereof with respect to
certification of revenues is met, but excluding from any
computation thereunder the securities to be refunded and
redeemed and which shall forthwith upon the issuance of the
refunding securities be no longer Outstanding.
D of Additiona
l Bonds. An Additional
G. Payment Dates Y
Parity Bonds or Subordinate Bonds or other additional Parity or
Subordinate Securities (including , without limitation, any
funding or refunding securities) issued in compliance with the
terms hereof may bear interest payable seminannually on such
days as the City Council may determine, but the first interest
payment date may be for interest accruing for any period not in
excess in the aggregate of one year ; and such additional
securities shall mature on such days as the City Council may
determine during the term of the additional bonds or other
additional securities.
H. Supplemental Ordinances . Additional bonds or other
additional securities payable from any Pledged Revenues shall be
issued only after authorization thereof by ordinance ,
supplemental ordinance or other instrument of the City Council
stating the purpose or purposes of the issuance of such
additional securities , directing the application of the proceeds
thereof to such purpose or purposes , directing the execution
thereof , and fixing and determining the date, principal amount,
maturity or maturities, designation and numbers thereof , the
maximum rate or rates of interest to be borne thereby, any prior
redemption privileges of the City with respect thereto, and
other provisions thereof in accordance with this Ordinance. All
additional securities shall bear such date , shall bear such
numbers and series designation, letters or symbols prefixed to
their numbers distinguishing them from other securities issued
or to to be issued, shall be payable at such place or places,
may be subject to redemption prior to maturity on such terms and
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conditions as may be provided, and shall bear interest at such
rate or at such different or varying rates per annum, all as may
be fixed by ordinance, instrument or other document of the City
Council.
Section S. Covenants.
The City hereby particularly covenants and agrees with the
Owners of the Bonds from time to time, and makes provisions
which shall be a part of its contract with such Owners, which
covenants and provisions shall be kept by the City continuously
until all of the Bonds and the interest thereon, have been fully
paid and discharged, to the effect and with the purpose that :
A. Rate Maintenance Covenant. The City covenants that it
will prescribe, revise, and co lect rates, fees , tolls, and
charges and tap fees or any combination thereof, which may be
imposed by the City whether pursuant to the Act or otherwise,
for the direct or indirect connection with, or the use of the
Sewerage Facilities , and reasonable penalties for any
delinquencies, which shall produce Income sufficient, together
with any other moneys legally available therefor and credited to
the Sewer Fund , to make the payments and accumulations required
by this Ordinance, and which shall produce Net Pledged Revenues
sufficient, together with all other moneys legally available
therefor and credited to the Sewer Fund after payment of
Operation and Maintenance Expenses , to pay an amount at least
equal to 120% of the Maximum Annual Service Requirements for the
Outstanding Bonds and every other issue of Outstanding Prior
Parity Bonds, Additional Parity Bonds or other Parity Securities
due in the next ensuing Fiscal Year , plus any amounts required
to meet then existing deficiencies pertaining to any account
relating to the Pledged Revenues or any securities payable
therefrom.
In the event that such rates , fees , tolls , and charges and
tap an fees at time should not
be sufficient to make all of the
y
payments and accumulations required by this Ordinance, the City
Council will increase its rates , fees , tolls , and charges and
tap fees to such extent as to insure the payments and
accumulations required by the provisions of this Ordinance.
B. Collection of Charges . The City shall cause all rates ,
fees , tolls , and charges and tap fees pertaining to the Sewerage
Facilities to be billed promptly and collected as soon as
reasonable, shall prescribe and enforce rules and regulations or
impose contractual obligations for the payment thereof , to the
end that the Pledged Revenues shall be adequate to meet the
ordinance or
requirements of this Ordinance and any other o r
instrument supplemental thereto. The rates, fees , tolls , and
charges and tap fees due shall be collected in any lawful manner .
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C. Competent Management. The City shall employ
experience and competent management personnel for each
component of the Sewerage Facilities. If the City shall fail to
pay the Debt Service Requirements of the Bonds promptly as the
same fall due, or if the City shall fail to keep any of the
covenants herein contained , and if such default shall continue
for a period of sixty (60) days , or if the Net Pledged Revenues
of the Sewerage Facilities in any Fiscal Year , together with
other legally available revenue and money, should fail to equal
at least the amount of the Debt Service Requirements of the
Bonds , and other obligations (including all reserves therefor
specified in the authorizing proceedings, including but not
limited to this Ordinance) payable from the Net Pledged
Revenues , proceeds and income in the Comparable Bond Year , the
City shall retain a firm of competent management Persons skilled
in the operation of sewerage facilities to assist in the
management of the Sewerage Facilities so long as such default
continues or the said revenues , proceeds and income are less
than the amount hereinabove designated.
D. Performance of Duties . The City, acting by and through
its officers , or otherwise, shall faithfully and punctually
perform, or cause to be performed , all duties with respect to
the Pledged Revenues, the Sewerage Facilities and the Project
required by the Constitution and laws of the State , and the
ordinances, resolutions and contracts of the City, including,
without limitation, the proper segregation of the proceeds of
the Bonds and the Pledged Revenues and their application from
time to time to the respective funds provided therefor .
E. Costs of Bond Issue and of Performance. Except as
otherwise specifically provided herein, all costs and expenses
incurred in connection with the issuance of the Bonds, payment
of the Debt Service Requirements , or with the City' s performance
of or compliance with any covenant or agreement contained in
this Ordinance, shall be paid exclusively (but only from the
appropriate special fund in the manner authorized herein) from
the proceeds of the Bonds, or from the Pledged Revenues , or from
other legally available moneys , and in no event shall any of
such costs or expenses be required to be paid out of or charged
to the general funds of the City.
F. Contractual Obligations . The City will perform all
contractual obligations undertaken by it under the Bond Purchase
Agreement with the Purchaser as described in Section 4B hereof
and any other agreements relating to the Bonds , the Pledged
Revenues , the Sewerage Facilities or the Project.
G. Further Assurances . At any and all times the City
shall , so far as it may be authorized by law, pass , make, do
execute, acknowledge, deliver , and file or record all and every
such further instruments , acts, deeds , conveyances , assignments ,
transfers, other documents , and assurances as may be necessary
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or desirable for the better assuring, conveying, granting ,
assigning and confirming all and singular the rights , the
Pledged Revenues and other funds and accounts hereby pledged or
assigned, or intended so to be, or which the City may hereafter
become bound to pledge or assign, or as may be reasonable and
required to carry out the purposes of this Ordinance. The City,
acting by and through its officers , or otherwise , shall at all
times , to the extent permitted by law, defend, preserve and
protect the pledge of the Pledged Revenues and other funds and
accounts pledged hereunder and all the rights of every Owner of
any of the Bonds against all claims and demands of all Persons
whomsoever .
H. Conditions Precedent . Upon the date of issuance of any
of the Bonds , all conditions , acts and things required by the
Constitution or laws of the United States, the Constitution or
laws of the State, the home rule charter of the City, and this
Ordinance, to exist, to have happened, and to have been
performed precedent to or in the issuance of the Bonds shall
exist , have happened and have been performed , and the Bonds ,
together with all other obligations of the City, shall not
contravene any debt or other limitation prescribed by the
Constitution or laws of the United States or the Constitution or
laws of the State or the home rule charter of the City.
I . Efficient Op nation and Maintenance; No Free Service.
The City shall at all times operate the Sewerage Facilities
properly and in a sound and economical manner. The City shall
maintain, preserve and keep the Sewerage Facilities properly or
cause the same so to be maintained, preserved , and kept, with
the appurtenances and every part and parcel thereof in good
repair , working order and condition, and shall from time to time
make or cause to be made all necessary and proper repairs ,
replacements and renewals so that at all times the maintenance
of the Sewerage Facilities may be properly and advantageously
conducted. All salaries, fees, wages and other compensation
paid by the City in connection with the repair , maintenance and
operation of the Sewerage Facilities shall be fair and
reasonable.
The City shall supply no free service to any Person. If the
City shall use the Sewerage Facilities as a customer , it shall
pay a fair and reasonable amount for such service. In no event
shall the City pay a greater amount than would be charged a
private Person for the same amount of service. The City shall
include in its annual budgets and appropriation measures ,
amounts sufficient to pay for service so furnished.
J. Records and Accounts. The City will keep proper books
of record and account, separate and apart from all other records
and accounts, showing comp
lete lete and correct entries of all
p
transactions relating
in to the funds referred to herein.
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K. Rules , Re ulations and Other Details. The City, acting
by and t roug its o icers, s al establish and enforce
reasonable rules and regulations governing the construction,
operation , care, repair , maintenance, management , control, use
and services of the Sewerage Facilities. The City shall observe
and perform all of the terms and conditions contained in this
Ordinance and shall comply with all valid acts , rules,
regulations , orders and directives of any legislative,
executive, administrative or judicial body applicable to the
Sewerage Facilities , the Project or the City.
L. Payment of Governmental Charges . The City shall pay or
cause to be paid all taxes and assessments or other municipal or
governmental charges , if any, lawfully levied or assessed upon
or in respect of the Sewerage Facilities , the Project , or upon
any part thereof, or upon any portion of the Pledged Revenues,
when the same shall become due , and shall duly observe and
comply with all valid requirements of any municipal or
governmental authority relative to the Sewerage Facilities, the
Project, or any part thereof, except for any period during which
the same are being contested in good faith by proper legal
proceedings . The City shall not create or suffer to be created
any lien or charge upon the Sewerage Facilities , the Project, or
any part thereof, or upon the Pledged Revenues , except the
pledge and lien created by this Ordinance for the payment of the
Debt Service Requirements due in connection with the Bonds, and
except as herein otherwise permitted. The City shall pay or
cause to be discharged or shall make adequate provision to
satisfy and to discharge , within ninety (90) days after the same
shall become payable, all lawful claims and demands for labor,
materials , supplies or other objects which, if unpaid, might by
law become a lien upon the Sewerage Facilities , the Project or
any part thereof, or the Pledged Revenues , but nothing herein
requires the City to pay or to cause to be discharged or to make
provision for any such tax , assessment, lien or charge, so long
as the validity thereof is contested in good faith and by
appropriate legal proceedings.
M. Protection of Security. The City, its officers , agents
and employees , shall not take any action in such manner or to
such extent as might prejudice the security for the payment of
the Debt Service Requirements of the Bonds and any other
securities payable from the Pledged Revenues according to the
terms thereof . No contract shall be entered into nor any other
action taken by which the rights of any Owner of any Bonds or
other security payable from Pledged Revenues might be
prejudicially and materially impaired or diminished.
N. Accumulation of Interest Claims. In order to prevent
any accumulation of claims for interest after maturity, the City
shall not directly or indirectly extend or assent to the
extension of the time for the payment of any claim for interest
on any of the Bonds or any other securities payable from Pledged
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Revenues ; and the City shall not directly or indirectly be a
party to or approve any arrangements for any such extension or
for the purpose of keeping alive any of such claims for
interest. If the time for the payment of any such installment
of interest is extended in contravention of the foregoing
provisions, such installment or installments of interest after
such extension or arrangement shall not be entitled in case of
default hereunder to the benefit or the security of this
Ordinance , except upon the prior payment in full of the
principal of all of the Bonds and any such securities the
payment of which has not been extended.
O. Prompt Payment of Bonds . The City shall promptly pay
the Debt Service Requirements of every Bond at the places , on
the dates , and in the manner specified herein and in the Bonds
according to the true intent and meaning hereof.
P. Use of Principal and Interest and Debt Service Reserve
Funds. The Principal and Interest Fund and the Debt Service
Reserve Fund shall be used solely and only, and the moneys
credited to such accounts are hereby pledged, for the purpose of
paying the Debt Service Requirements of the Prior Parity Bonds,
the Bonds, Additional Parity Bonds and any other Parity
Securities to their respective maturities or any Redemption Date
or Redemption Dates on which the City is obligated to redeem
Bonds , subject to Section 9 hereof.
Q. Additional Securities . The City shall not hereafter
issue any bonds or securities relating to the Sewerage
Facilities or the Project and payable from Pledged Revenues ,
other than the Bonds, without compliance with the requirements
with respect to the issuance of Additional Parity Bonds or other
securities set forth herein to the extent applicable.
R. Other Liens. Other than as provided herein, there are
no liens or encumbraces of any nature whatsoever on or against
the Sewerage Facilities , the Project or any part thereof , or on
or against the Pledged Revenues.
S. Disposal of Sewerage Facilities Prohibited . Subject to
Section 8V hereof , except for the use of the Sewerage Facilities
and services pertaining thereto in the normal course of
business , neither all nor a substantial part of the Sewerage
Facilities shall be sold, mortgaged, pledged, encumbered ,
alienated or otherwise disposed of , until all of the Bonds have
been paid in full, as to all Debt Service Requirements , or
unless provision has been made therefor , or until the Bonds have
otherwise been redeemed, including , without limitation, the
termination of the pledge as herein authorized. Subject to
Section 8V hereof, the City shall not dispose of its title to
the Sewerage Facilities or to any useful part thereof , including
any property necessary to the operation and use of the Sewerage
Facilities and the lands and interests in lands comprising the
Sewerage Facilities.
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T. Surety Bonds. Each official or other person having
custody of any Pledged Revenues or responsible for their
handling , shall be fully bonded at all times , which bond shall
be conditioned upon the proper application of said moneys. The
cost of each such bond shall be considered an Operation and
Maintenance Expense , unless otherwise provided by law.
U. Arbitrage Covenant. The City covenants that it will
make no investment or other use of the proceeds of the Bonds,
which, if such investment or other use had been reasonably
expected on the date the Bonds are issued, would have caused the
Bonds to be arbitrage bonds within the meaning of Section 103 (c)
of the Internal Revenue Code of 1954, as amended, and the
regulations thereunder.
V. Disposal of Property. No part of the Sewerage
Facilities shall be sold, leased, mortgaged, pledged, encumbered
or otherwise disposed of or otherwise alienated, until all of
the Bonds have been paid in full, or unless provision has been
made therefor , or until the Bonds have otherwise been redeemed;
provided, however , that the City may sell, exchange or lease at
any time and from time to time any property or facilities
constituting part of the Sewerage Facilities and not useful in
the construction, reconstruction or operation thereof; but any
proceeds of any such sale or exchange received and not used to
replace such property so sold or exchanged shall be deposited in
the Sewer Fund, and any proceeds of any such lease received
shall be deposited by the City as revenues of the Sewerage
Facilities.
W. Loss from Condemnation. If any part of the Sewerage
Facilities is taken by the exercise of a power of eminent
domain, the amount of any award received by the City as a result
of such taking shall be expended upon the Improvement or
Equipment of the Sewerage Facilities or upon both its
Improvement and Equipment, or shall be applied to the redemption
of the Outstanding Prior Parity Bonds , the Bonds , any
Outstanding Additional Parity Bonds and any Outstanding Parity
Securities in accordance with the provisions hereof and of any
other instrument pertaining to the issuance of any such Parity
Securities at maturity or prior thereto if the authorizing
ordinances authorize the prior redemption of such securities, or
shall be deposited in the Sewer Depreciation and Capital
Improvements Fund and held as a reserve for expenditure
subsequently upon such capital improvements, or any combination
thereof , as the City Council may determine.
X. Inspection of Records. Any Owner of any of the Bonds
or any other securities payable from the Pledged Revenues, any
duly authorized agent or agents of such Owner , or the Purchaser
of the Bonds , shall have the right at all reasonable times to
inspect all records , accounts and data relating thereto,
concerning the Sewerage Facilities, the Project , the Pledged
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Revenues , or all or any other combination thereof, to make
copies of such records, accounts and data at the Owner' s or
Purchaser ' s expense , and to inspect the Sewerage Facilities and
properties comprising the Sewerage Facilities.
Y. Audits Required. The City, annually following the
close of each Fiscal Year , shall order an audit for the Fiscal
Year of the books and accounts pertaining to the Sewerage
Facilities to be made forthwith by an Independent Accountant ,
and order an audit report showing the receipts and disbursements
for each fund or account pertaining to the Sewerage Facilities ,
the Project , the Pledged Revenues , or all or any other
combination thereof. All expenses incurred in the making of the
audits and reports required by this subsection shall be regarded
and paid as an operation and Maintenance Expense.
Z. Insurance and Reconstruction. The City shall at all
times maintain with responsible insurers all such insurance
reasonably required and obtainable within limits and at costs
deemed reasonable by the City as is customarily maintained with
respect to sewerage facilities of like character against loss of
or damage to the Sewerage Facilities and against public and
other liability to the extent at least reasonably necessary to
protect the interest of the City and of each Owner of a Bond or
any other security payable from the Pledged Revenues, except as
herein otherwise provided. If any useful part of the Sewerage
Facilities shall be damaged or destroyed, the City shall , as
expeditiously as possible, commence and diligently proceed with
the repair or replacement of the damaged or destroyed property
so as to restore the same to use. The proceeds of any insurance
appertaining to the Sewerage Facilities shall be payable to the
City and (except for proceeds of use and occupancy insurance)
shall be applied to the necessary costs involved in such repair
and replacement, and to the extent not so applied shall
(together with the proceeds of any such use and occupancy
insurance) be deposited in the Sewer Fund as Pledged Revenues.
If the costs of such repair and replacement of the damaged or
destroyed property exceed the proceeds of such property
insurance available for payment of the same, moneys in the Sewer
Fund shall be used to the extent necessary for such purpose , as
permitted by Section 5J hereof.
AA. Completion of Project• Estimated Life of Project. The
City, with the proceeds derived from the sale of the Bonds , and
any other legally available moneys , including the proceeds
derived from the issuance of Additional Parity Bonds, shall
proceed to cause the Project to be completed without delay to
the best of the City' s ability and with due diligence, as herein
provided.
The City Council hereby determines that the estimated life
of the Project to be financed with the Bond proceeds is not less
than twenty-five (25) years and one (1) month.
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Section 9. Defeasance.
When all Debt Service Requirements of the Bonds have been
duly paid, the pledge and lien and all obligations hereunder
shall thereby be discharged and the Bonds shall no longer be
deemed to be Outstanding within the meaning of this Ordinance.
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 or
without the State, moneys or Federal Securities in an amount
sufficient (including the known minimum yield available for such
purpose from Federal Securities in which such amount wholly or
in part may be initially invested) to meet all Debt Service
Requirements of the Bonds, as the same become due to the final
maturities of the Bonds or upon any Redemption Date as of which
the City shall have exercised or shall have obligated itself to
exercise its prior redemption option by a call of Bonds for
payment then. 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 Outstanding Bonds in accordance with the
provisions of this Section 9.
Section 10. Default Provisions and Remedies of Bond
Owners.
A. Events of Default. Each of the following events is
hereby declared to be and to constitute an Event of Default:
(1) Non a ment of Princi al or Premium. Payment of
the principal o any o the Bon s , or any prior redemption
premiums due in connection therewith, or both, is not made when
the same becomes due and payable, either at maturity or by
proceedings for prior redemption, or otherwise;
(2) Nonpayment of Interest . Payment of any
installment of interest is not made when the same becomes due
and payable;
(3) Incapable to Perform. The City for any reason is,
or is rendered, in
of fulfilling its obligations
hereunder ;
(4) Nonperformance of Duties . The City shall have
failed to carry out and to perform (or in good faith to begin
the performance of) all acts and things lawfully required to be
carried out or to be performed by it under any contract relating
to the Pledged Revenues, to the Project, to the Sewerage
Facilities or to all or any combination thereof , or otherwise,
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including , without limitation, this Ordinance, and such failure
shall continue for sixty (60) days after receipt of notice from
the Owners of twenty-five percent (25%) in aggregate principal
amount of the Bonds then Outstanding ; provided that if such
failure cannot be cured within such sixty (60) days and if
during that period corrective action has commenced to remedy
such failure and subsequently is diligently pursued by the City
to the completion of such performance, an Event of Default shall
not be deemed to have occurred;
(5) Failure to Reconstruct . The City discontinues or
unreasonably delays or fails to carry out with reasonable
dispatch the reconstruction of any revenue-producing part of the
Sewerage Facilities which is condemned, destroyed or damaged and
is not promptly repaired or replaced (whether such failure to
repair the same is due to impracticality of such repair or
replacement, or is due to a lack of moneys therefor , or for
other reason) ;
(6) A ointment of Receiver . An order or decree is
entered by a court or
competent jurisdiction, with the consent
or acquiescence of the City, appointing a receiver or receivers
for the Sewerage Facilities or for the Pledged Revenues and any
other moneys subject to the lien to secure the payment of the
Bonds , or both the Sewerage Facilities and such moneys, or if
any order or decree, having been entered without the consent or
acquiescence of the City, is not vacated or discharged or stayed
on appeal within sixty (60) days after entry;
(7) Default of Any Provision. The City makes any
default in the due and punctual performance of any other of the
representations, covenants , conditions , agreements and other
provisions contained in the Bonds or in this Ordinance on its
part to be performed, and if such default continues for sixty
(60) days after written notice, specifying such default and
requiring the same to be remedied, is given to the City by the
Owners of twenty-five percent (25%) in aggregate principal
amount of the Bonds then Outstanding; provided that if such
default cannot be cured within such sixty (60) days and if
during that period corrective action has commenced to remedy
such default and subsequently is diligently pursued to the
completion of such performance , an Event of Default shall not be
deemed to have occurred.
happening and
for Defaults. Upon the ha
B. Remedies P P
continuance of any of the Events of Default , as provided in
Section 10A hereof, then and in every case the Owner or Owners
of not less than twenty-five percent (25%) in aggregate
principal amount of the Bonds then Outstanding, including ,
without limitation, a trustee or trustees therefor , may proceed
against the City and its agents , officers and employees to
protect and to enforce the rights of any Owner of Bonds under
this Ordinance by mandatory injunction or by other suit, action,
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or special proceedings in equity or at law, in any court of
competent jurisdiction, either for the appointment of a receiver
or an operating trustee or for the specific performance of any
covenant or agreement contained herein or for any proper legal
or equitable remedy as such Owner or Owners may deem most
effectual to protect and to enforce the rights aforesaid, or
thereby to enjoin any act or thing which may be unlawful or in
violation of any right of any Owner of any Bond, or to require
the City to act as if it were the trustee of an expressed trust,
or any combination of such remedies , or as otherwise may be
authorized by any statute or other provision of law. All such
proceedings at law or in equity shall be instituted, had and
maintained for the equal benefit of all Owners of the Prior
Parity Bonds , the Bonds , and any Additional Parity Bonds or
additional Parity Securities then Outstanding. Any receiver or
operating trustee appointed in any proceedings to protect the
rights of such Owners hereunder may collect , receive and apply
all Pledged Revenues arising after the appointment of such
receiver or operating trustee in the same manner as the City
itself might do. The consent to any such appointment is hereby
expressly granted by the City.
C. Rights and Privileges Cumulative. The failure of any
Owner of any Outstanding Bond to proceed in any manner herein
provided shall not relieve the City or any of its officers ,
agents or employees of any liability for failure to perform to
carry out any duty, obligation or other commitment. Each right
or privilege of any such Owner or trustee therefor is in
addition and is cumulative to any other right or privilege, and
the exercise of any right or privilege by or on behalf of any
Owner shall not be deemed a waiver of any other right or
privilege thereof. Each Owner of any Bond shall be entitled to
all of the privileges, rights and remedies provided or permitted
in this Ordinance and as otherwise provided or permitted by law
or in equity or by statute , except as provided in Sections 12A
and 12B hereof , and subject to the appicable provisions
concerning the Pledged Revenues and the proceeds of the Bonds.
Nothing herein affects or impairs the right of any Owner of any
Bond to enforce the payment of the Debt Service Requirements due
in connection with this Bond or the obligation of the City to
pay the Debt Service Requirements of each Bond to the Owner
thereof at the time and the place expressed in such Bond.
D. Duties Upon Default . Upon the happening of any of the
Events of Default as provided in Section 10A hereof , the City,
in addition, will do and perform all proper acts on behalf of
and for the Owners of the Outstanding Bonds to protect and to
preserve the security created for the payment of their Bonds and
to insure the payment of the Debt Service Requirements promptly
as the same become due. During any period of default, so long
as any of the Bonds , as to any Debt Service Requirements , are
Outstanding , except to the extent it may be unlawful to do so,
all Pledged Revenues shall be paid into the Principal and
-46-
Interest Fund, or , in the event of securities hereafter issued
and Outstanding during such period of time on a parity with the
Bonds , shall be paid into the Principal and Interest Fund for
all Parity Securities, including the Bonds, on an equitable and
prorated basis , and used for the purposes therein provided. If
the City fails or refuses to proceed as in this Section 10D
provided , the Owner or Owners of not less than twenty-five
percent (25%) in aggregate principal amount of the Bonds then
Outstanding , after demand in writing, may proceed to protect and
to enforce the rights of the Owners of the Bonds as hereinabove
provided ; and to that end any such Owners of Outstanding Bonds
shall be subrogated to all rights of the City under any
agreement or contract involving the Pledged Revenues entered
into prior to the effective date of this Ordinance or thereafter
while any of the Bonds are Outstanding. Nothing herein requires
the City to proceed as provided herein if it determines in good
faith and without any abuse of its discretion that if it so
proceeds it is more likely than not to incur a net loss rather
than a net gain or such action is likely to affect materially
and prejudicially the Owners of the Outstanding Bonds and any
Outstanding Parity Securities.
E. Evidence of Security Owners. Any request, consent or
other instrument which this Ordinance may require or may permit
to be signed and to be executed by the Owner of any Bonds or
other securities may be in one instrument or more than one
instrument of similar tenor and shall be signed or may be
executed by each Owner in person or by his attorney appointed in
writing. Proof of the execution of any such instrument or of
any instrument appointing any such attorney, or the ownership by
any Person of the securities , shall be sufficient for any
purpose of this Ordinance (except as otherwise herein expressly
provided) if made in the following manner :
(1) Proof of Execution. The fact and the date of the
execution by any Owner of any Bonds or other securities or his
attorney of such instrument may be proved by the certificate ,
which need not be acknowledged or verified, of any officer of a
bank or trust company satisfactory to the City Clerk or of any
notary public or other officer authorized to take
acknowledgments of deeds to be recorded in the state in which he
purports to act, that the individual signing such request or
other instrument acknowledged to him the execution, duly sworn
to before such notary public or other officer ; the authority of
the individual or individuals executing any such instrument on
behalf of a corporate Owner of any securities may be established
without further proof if such instrument is signed by an
individual purporting to be the president or vice-president of
such corporation with the corporate seal affixed and attested by
an individual purporting to be its secretary or an assistant
secretary; and the authority of any Person or Persons executing
any such instrument in any fiduciary or representative capacity
may be established without further proof if such instrument is
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signed by a Person or Persons purporting to act in such
fiduciary or representative capacity; and
(2) Proof of Ownership. The amount of Bonds owned by
any Person executing any instrument as an Owner of Bonds, and
the numbers, date and other identification thereof , together
with the date of his ownership of the Bonds, shall be determined
from the registration books of the City. The amount of other
securities , if applicable, owned by any Person executing any
instrument as an owner of such securities, and the numbers, date
and other identification thereof, together with the date of his
ownership, if in bearer form, may be proved by a certificate
which need not be acknowledged or verified, in form satisfactory
to the City Clerk, executed by a member of a financial firm or
by an officer of a bank or trust company, insurance company or
financial corporation or other depository satisfactory to the
City Clerk , or by any notary public or other officer authorized
to take acknowledgments of deeds to be recorded in the state in
which he purports to act, showing at the date therein mentioned
that such Person exhibited to such member , officer, notary
public or other officer so authorized to take acknowledgments of
deeds or had on deposit with such depository the securities
described in such certificate or , if in registered form shall be
determined from the related registration books ; but the City
Clerk may nevertheless in his or her discretion require further
or other proof in cases where he or she deems the same advisable.
F. Warrant U on Issuance of Bonds. Any of the Bonds as
herein provide when duly executed and registered for the
purposes provided for in this Ordinance, shall constitute a
warranty by and on behalf of the City for the benefit of each
and every future Owner of any of the Bonds that the Bonds have
been issued for a valuable consideration in full conformity with
law.
G. Immunities of Purchaser. The Purchaser and any
associate thereof are under no obligation to any Owner of the
Bonds for any action that they may not take or in respect of
anything that they may or may not do by reason of any
information contained in any reports or other documents received
by them under the provisions of this Ordinance. The immunities
and exemption from liability of the Purchaser and any associate
thereof hereunder extend to their partners , directors,
successors , assigns , employees and agents.
Section 11. Amendment of Ordinance.
A. Amendment of Ordinance Not Requiring Consent of Bond
Owners. The City may, without the consent of, or notice to, the
Owners of the Bonds, adopt such ordinances supplemental hereto
(which amendments shall thereafter form a part hereof) for any
one or more or all of the following purposes :
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(1) To cure any ambiguity, or to cure, correct or
supplement any defect or inconsistent provision contained in
this Ordinance, or to make any provision with respect to matters
arising under this Ordinance or for any other purpose if such
provisions are necessary or desirable and do not adversely
affect the interests of the Owners of the Bonds ; or
(2) To subject to this Ordinance additional revenues,
properties or collateral.
B. Amendment of Ordinance Revirin Consent of Bond
Owners. Exclusive o the amendator or finances covered y
Section 11A hereof, this Ordinance may be amended or modified by
ordinances or other instruments duly adopted by the City
Council , without receipt by it or any additional consideration,
but with the written consent of the Owners of sixty-six percent
(66%) in aggregate principal amount of the Bonds and Outstanding
at the time of the adoption of such amendatory ordinance,
including any Outstanding refunding securities as may be issued
for the purpose of refunding any of the Bonds, provided that no
such amendatory resolution shall permit :
(1) Changing Payment. A change in the maturity or in
the terms of redemption of the principal of any Outstanding Bond
or any installment of interest thereon ; or
(2) Reducing Return. A reduction in the principal
amount of any Bond, the rate of interest thereon, or any premium
payable in connection with the redemption thereof, without the
t of the Owner of the Bond;consent , or
(3) Prior Lien. The creation of a lien upon or a
pledge of revenues ranking prior to the lien or to the pledge
created by this Ordinance; or
(4) Modifying Amendment Terms. A reduction of the
principal amount or percentages of Bonds , or any modification
otherwise affecting the description of Bonds , otherwise changing
the consent of the Owners of Bonds, which may be required herein
for any amendment hereto; or
(5) Priorities Between Bonds. The establishment of
priorities as between Bonds issued and Outstanding under the
provisions of this Ordinance; or
(6) Partial Modification. Any modifications otherwise
materially and prejudicially affecting the rights or privileges
of the Owners of less than all of the Bonds then Outstanding.
Whenever the City Council proposes to amend or modify this
Ordinance under the provisions of this Section 11B it shall give
notice of the proposed amendment by mailing such notice to the
Purchaser of the Bonds, or to any successor thereof known to the
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City Clerk and to all registered Owners of Bonds on the
registration books of the City. Such notice shall briefly set
forth the the nature of the proposed amendment and shall state
that a copy of the proposed amendatory ordinance or other
instrument is on file in the office of the City Clerk for public
inspection.
C. Time for and Consent to Amendment. Whenever at any
time within one (1) year from the date of the completion of the
notice required to be given by Section 11B hereof there shall be
filed in the office of the City Clerk an instrument or
instruments executed by the Owners of at least sixty-six percent
(66%) in aggregate principal amount of the Bonds then
Outstanding , which instrument or instruments shall refer to the
proposed amendatory ordinance or other instrument described in
such notice and shall specifically consent to and approve the
adoption of such ordinance or other instrument, thereupon, but
not otherwise, the City Council may adopt such amendatory
ordinance or instrument and such ordinance or instrument shall
become effective. If the Owners of at least sixty-six percent
(66%) in aggregate principal amount of the Bonds then
Outstanding , at the time of the adoption of such amendatory
ordinance or instrument, or the predecessors in title of such
Owners, shall have consented to and approved the adoption
thereof as herein provided, no Owner of any Bond whether or not
such Owner shall have consented to or shall have revoked any
consent as herein provided shall have any right or interest to
object to the adoption of such amendatory ordinance or other
instrument or to object to any of the terms or provisions
therein contained or to the operation thereof or to enjoin or
restrain the City from taking any action pursuant to the
provisions thereof. Any consent given by the Owner of a Bond
pursuant to the provisions thereof shall be irrevocable for a
period of six (6) months from the date of the completion of the
notice above provided for and shall be conclusive and binding
upon all future Owners of the same Bond during such period.
Such consent may be revoked at any time after six (6) months
from the completion of such notice, by the Owner who gave such
consent or by a successor in title , by filing notice of such
revocation with the City Clerk , but such revocation shall not be
effective if the Owners of sixty-six percent (66%) in aggregate
principal amount of the Bonds Outstanding as herein provided,
prior to the attempted revocation, shall have consented to and
approved the amendatory instrument referred to in such
revocation.
D. Unanimous Consent. Notwithstanding anything in the
foregoing provisions contained, the terms and the provisions of
this Ordinance, or of any ordinance or instrument amendatory
thereof , and the rights and the obligations of the City and of
the Owners of the Bonds may be modified or amended in any
respect upon the adoption by the City and upon the filing with
the City Clerk of an instrument to that effect and with the
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consent of the Owners of all the then Outstanding Bonds, such
consent to be given in the manner provided in Section 11C
hereof ; and no notice to Owners of Bonds shall be required as
provided in Section 11B hereof , nor shall the time of consent be
limited except as may be provided in such consent.
E. Exclusion of Bonds. At the time of any consent or of
other action taken hereunder the City shall furnish to the Clerk
a certificate , upon which the Clerk may rely, describing all
Bonds to be excluded for the purpose of consent or of other
action or or any calculation of Outstanding Bonds provided for
hereunder , and, with respect to such excluded Bonds , the City
shall not be entitled or required with respect to such Bonds to
give or obtain any consent or to take any other action provided
for hereunder.
F. Notation on Bonds . Any of the Bonds delivered after
the effective date of any action taken as provided in Section
llB, or Bonds Outstanding at the effective date of such action,
may bear a notation thereon by endorsement or otherwise in form
approved by the City Council as to such action; and if any such
Bonds so executed and delivered after such date does not bear
such notation , then upon demand of the Owner of any Bond
Outstanding at such effective date and upon presentation of his
Bond for such purpose at the principal office of the City,
suitable notation shall be made on such Bond by the City Clerk
as to any such action. If the City Council so determines , new
Bonds so modified as in the opinion of the City Council to
conform to such action shall be prepared, executed and
delivered; and upon demand of the Owner of any Bond then
Outstanding , shall be exchanged without cost to such Owner for
Bonds then Outstanding upon surrender of such Outstanding Bonds.
G. Proof of Instruments and Bonds .
The fact and date of
execution of any instrument under the provisions of this Section
11 , the amount and number of the Bonds owned by any Person
executing such instrument , and the date of his registering the
same may be proved as provided by Section 10E hereof.
Section 12. Miscellaneous.
A. Character of Agreement . None of the covenants ,
agreements , representations , or warranties contained herein or
in the Bonds shall ever impose or shall be construed as imposing
any liability, obligation, or charge against the City (except
for the special funds pledged therefor) or against the general
credit of the City payable out of general funds or out of any
funds derived from general property taxes.
B. No Pledge of Property. The payment of the Bonds is not
secured by an encumbrance, mortgage or other pledge of property
of the City except for the Pledged Revenues of the City. No
property of the City, subject to such exception with respect to
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the Pledged Revenues , pledged for the payment of the Bonds ,
shall be liable to be forfeited to taken in payment of the Bonds.
C. Statute of Limitations. No action or suit based upon
any Bond or other obligaTi�on of the City shall be commenced
after it is barred by any statute of limitations pertaining
thereto. Any trust or fiduciary relationship between the City
and the Owner of any Bond or the obligee regarding any such
obligation shall be conclusively presumed to have been
repudiated on the maturity date or other due date thereof unless
the Bond is presented for payment or demand for payment of such
other obligation is otherwise made before the expiration of the
applicable limitation period. Any moneys from whatever source
derived remaining in any fund or account reserved, pledged or
otherwise held for the payment of any such obligation, action or
suit, the collection of which has been barred, shall revert to
the Sewer Fund, unless the City Council shall otherwise provide
by ordinance. Nothing herein prevents the payment of any such
Bond or other obligation after an action or suit for its
collection has been barred if the City Council deems it in the
best interests of the City or the public so to do and orders
such payment to be made.
D. Dele ated Duties . The officers of the City are hereby
authorize an directe 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 limitation:
(1) Printing of Bonds. The printing of the Bonds,
including the printing upon each such Bond of a copy of the
approving legal opinion of Ballard, Spahr , Andrews & Ingersoll,
bond counsel , duly certified by the City Clerk, and, if
necessary or desirable pending delivery of printed Bonds, the
preparation of one or more temporary typewritten Bonds in an
aggregate principal amount equal to that of the Bonds, otherwise
in substantially the same form and bearing the same terms , to be
delivered to the Purchaser and thereafter to be exchanged by the
Purchaser for printed Bonds when the same are received by the
City;
(2) Execution, Reqistration and Delivery of
Bonds. The execution and registration of the Bonds and the
delivery of the Bonds to the Purchaser pursuant to the
provisions of this Ordinance;
( 3) Information. The assembly and dissemination of
financial and other iMormation concerning the City and the
Bonds ;
(4) Official Statement. The preparation of a final
official statement for the use of prospective buyers of the
Bonds , including, without limitation, the Purchaser and its
associates , if any; and
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(5) Closing Certificates. The execution of such
certificates as may be reasonably required by the Purchaser ,
relating, inter alia , to:
(a) The signing of the Bonds ;
(b) The tenure and identity of the officials of the
City;
(c) If in accordance with fact, the absence of
litigation, pending or threatened, affecting the validity of the
Bonds ;
(d) The exemption of interest on the Bonds from
federal and State income taxation;
(e) The delivery of the Bonds and the receipt of the
Bond purchase price;
(f) The accuracy and adequacy of information provided
in the preliminary official statement and official statement
prepared for prospective buyers of the Bonds.
E. Successors. Whenever herein the City is named or is
referred to, such provision shall be deemed to include any
successors of the City, whether so expressed or not. All of the
covenants , stipulations, obligations and agreements by or on
behalf of and other provisions for the benefit of the City
contained herein shall bind and inure to the benefit of any
officer , board , district , commission , authority, agency,
instrumentality or other Person or Persons to whom or to which
there shall be transferred by or in accordance with law any
right , power or duty of the City or of its respective
successors , if any, the possession of which is necessary or
appropriate in order to comply with any such covenants,
stipulations , obligations , agreements or other provisions hereof.
F. Rights and Immunities . Except as herein otherwise
expressly provide d, nothing erein expressed or implied is
intended or shall be construed to confer upon or to give to any
Person, other than the City, and the 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 Owner of any of the Bonds.
No recourse shall be had for the payment of the Debt Service
Requirements of the Bonds or for any claim based thereon or
otherwise upon this Ordinance authorizing their issuance or any
other ordinance or instrument pertaining thereto, against any
individual member of the City Council, or any officer or other
agent of the City, past, present or future, either directly or
-53-
indirectly through the City, or otherwise, whether by virtue of
any constitution, 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.
G. 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:
(1) Project . Toward the Project , and
(2) Bonds. Toward the sale and delivery of the Bonds
for that purpose, be, and the same hereby is , ratified, approved
and confirmed.
A. 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 and the City Clerk 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.
I . Ordinance Irre ealable. This Ordinance is , and shall
constitute-,a egislative measure of the City and after any of
the Bonds are issued, this Ordinance shall constitute an
irrevocable contract between the City and the Owner or Owners of
the Bonds ; and this Ordinance, subject to the provisions of
Sections 9 and 11 hereof, if any Bonds are in fact issued, shall
be and shall remain irrepealable until the Bonds , as to all Debt
Service Requirements , shall be fully paid, cancelled and
discharged, as herein provided.
ler . All ordinances
J. Re ea r resolutions , bylaws, orders ,
and other instruments , or parts thereof , inconsistent herewith
are hereby repealed to the extent only of such inconsistency.
This repealer shall not be construed to revive any ordinance,
resolution, bylaw, order , or other instrument , or part thereof ,
heretofore repealed.
K. Severability. If any section, subsection, paragraph,
clause or other provision of this Ordinance shall for any reason
be held to be invalid or unenforceable , the invalidity or
unenforceability thereof shall not affect any of the remaining
sections , subsections , paragraphs, clauses or provisions of this
Ordinance.
-54-
INTRODUCED, READ, APPROVED ON FIRST READING, AND ORDERED
PUBLISHED ONCE IN FULL THIS 30th day of October , 1984.
CITY OF FORT COLLINS, COLORADO
By:
(CITY) Mayor
(SEAL)
ATTEST:
.-S
City Clerk
The foregoing Ordinance will be presented for final passage
at the City Council' s regular meeting, to be held at Council
Chambers , City Hall, 300 LaPorte Avenue, Fort Collins , Colorado,
on Tuesday, the 20th day of November , 1984 , at 5 : 30 p.m.
-55-
READ, FINALLY PASSED ON SECOND READING, AND ORDERED
PUBLISHED ONCE BY NUMBER AND TITLE ONLY this 20th day of
November , 1984.
CITY OF FORT COLLINS, COLORADO
By:
(CITY) Mayor
(SEAL)
ATTEST:
City Clerk
-56-
Council Member Knezovich moved that the foregoing
Ordinance heretofore introduced and read by title be approved on
first reading. Council Member Stoner seconded the motion.
The question being upon the approval on first reading of the
Ordinance, the roll was called with the following results :
Council Members voting "AYE" : Gerald C. Horak
E. John Clarke
William Elliott
John B. Knezovich
Kelly Ohlson
Barbara Rutstein
Ed Stoner
Council Members voting "NAY" : None
The Mayor thereupon declared that, a majority of the Council
Members present having voted in favor thereof , the motion was
carried and the Ordinance duly approved on first reading.
Thereupon the Mayor ordered said Ordinance published once in
full together with a notice giving the date when said 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) City o Fort Collins, Colorado
(SEAL)
ATTEST:
City Clerk
City of Fort Collins , Colorado
-57-
s
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 LaPorte
Avenue, Fort Collins, Colorado, on Tuesday, the 20th day of
November , 1984 , at the hour of 5: 30 p.m.
The following persons were present:
Council Members: Gerald C. Horak, Mayor
E. John Clarke, Assistant Mayor
�Fi33iam-�r4et-�
John B. Knezovich
Kelly Ohlson
Barbara Rutstein
Ed Stoner
City Manager : John E. Arnold
City Clerk: Wanda M. Krajicek
The following persons were absent:
William Elliott, Councilmember
The Mayor informed the Council that Ordinance No. 158, 1984 ,
which was introduced, approved on first reading , and ordered
published once in full at the continuation of the Council's
adjourned regular meeting of October 16, 1984, held on
October 30, 1984 , was duly published in The Coloradoan, a
newspaper of general circulation published in the City, in its
issue of November 4 , 1984.
Council Member Knezovich then read said Ordinance by
its title.
Thereupon, Council Member Knezovich moved the final
passage of Ordinance No. 158, 1984. Council Member Ohlson
seconded the motion, and the question being upon the final
passage of said Ordinance, the roll was called with the
following result:
Council Members voting "AYE" : Gerald C. Horak
E. John Clarke
Wi-1-1-am-zllie-t-t
John B. Knezovich
Kelly Ohlson
Barbara Rutstein
Ed Stoner
-58-
Council Members voting "NAY" : None
The Mayor thereupon declared that a majority of the Council
Members present having voted in favor thereof, the motion was
carried and the Ordinance finally passed.
Thereupon the Mayor ordered said Ordinance published by
number and title only together with a notice of the final
passage of the Ordinance in The Coloradoan, a newspaper of
general circulation published in the City, within five (5) days
after said final passage.
After consideration of other business to come before the
Council the meeting was adjourned.
Mayor
City o Fort Collins, Colorado
(CITY)
(SEAL)
ATTEST:
TTESTT:
City Clerk
City of Fort Collins , Colorado
-59-
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. 158, 1984, is a true and correct copy; that said
Ordinance was introduced and approved on first reading by the
Council of the City of Fort Collins, Colorado, at the
continuation of its adjourned regular meeting of October 16,
1984, held at Council Chambers, City Hall, 300 LaPorte Avenue,
Fort Collins, Colorado, the regular meeting place thereof, on
Tuesday, the 30th day of October , 1984 ; that said Ordinance was
finally passed on second reading by said Council at its regular
meeting , held at Council Chambers, City Hall, 300 LaPorte
Avenue, Fort Collins, Colorado, the regular meeting place
thereof , on Tuesday, the 20th day of November , 1984 ; that a true
copy of said Ordinance has been authenticated by the signatures
of the Mayor of said 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 said Ordinance was duly published once in full
together with a notice giving the date when said Ordinance would
be presented for final passage and once by number and title only
together with a notice of the final passage thereof in The
Coloradoan, a newspaper of general circulation published in the
City, in its issues of November 4, 1984, and November 26 , 1984,
as evidenced by the certificates of the publisher attached
hereto at pages 61 and 62. I further certify that the foregoing
pages 1 through 59, inclusive, constitute a true and correct
copy of the record of the proceedings of said City Council at
its aforesaid meetings, insofar as said proceedings relate to
said Ordinance; that said proceedings were duly had and taken,
that the meetings were duly held; and that the persons were
present at said meetings as therein shown.
IN WITNESS WHEREOF, I have hereunto set my hand and the seal
of the City of Fort Collins, Colorado, this2.klhday of November ,
1984 .
4
(CITY) City `'le`^
(SEAL) City of Fort Collins, Colorado
-60-
STATE OF COLORADO )
COUNTY OF LARIMER ) ss.
CITY OF FORT COLLINS )
(Attach affidavit of publication in full of Ordinance and
notice giving date when Ordinance to be presented for final
passage. )
-61-
�6
The Coloradoan
STATE OF COLORADO )
)as, AFFIDAVIT OF PUBLICATION
COUNTY OF LARIMER )
T r e R Anderson being first duly sworn upon oath, deposes
and says: That said is the Legal Clerk of The Coloradoan;
that said has personal knowledge of all facts set forth in this affidavit; that The Coloradoan
is a public daily newspaper of general circulation, having its principal office and place of
business situated in said County of Larimer; that said Coloradoan is printed and published
t daily; that said Coloradoan is a daily newspaper, duly qualified for the purpose set forth
within the meaning of Chapter 109, Article 1, Sections 1-1 to 1-8 inclusive of Colorado
Revised Statutes 1973, and any amendment thereof passed prior to the date hereof; that
said newspaper had,prior to January 1, 1936, and has ever since said date been admitted to
the United States Mails as second class matter under the provisions of the Act of March 3,
1879, and any amendments thereof, that said newspaper is printed in whole in said County
of Larimer and has a general circulation therein; that said newspaper has been so printed
and published as a public daily newspaper of general circulation in said County of Lar-
imer, uninterruptedly and continuously, during the period of more than fifty-two consecu-
tive weeks next prior to the first issue thereof containing the annexed legal notice of
advertisement; that said annexed legal notice or advertisement was published in the
regular and entire editions of said newspaper for
_ 1 successive weeks-otr day ef-each-sueeeesWe week; that the
first publication of said legal notice or advertisement was in the regular and entire edition
of said newspaper on the 4th day of November , A.D. 19 84; that the last
publication of said legal notice or advertisement was in the regular and entire edition of
said newspaper on the 4th day of November , A.D. 1984, and that
copies of each number of said paper in which said notice or advertisement was published
were delivered by carriers or transmitted by mail to each of the subscribers of said paper,
according to the accustomed mode of business in this office.
Z-99
Subscribed and sworn to before me, at and within the County of Larimer, State of Colorado
this _ 4th day of Nnyamho r , A.D. 19 84__.
My man Expires August 15, 1987
1212 ' tside, Foot tuns, 00 gw5
My commission expires --
Notary Public
City Clerk
Delivered to --
j 0 1
STATE OF COLORADO )
COUNTY OF LARIMER ) ss.
CITY OF FORT COLLINS )
(Attach affidavit of publication of Ordinance by number and
title only and notice of final passage thereof. )
-62-
The Coloradoan
STATE OF COLORADO
)ss. AFFIDAVIT OF PUBLICATION NOTICE Is HEREBY GIVEN
1na1 the Forl Collins City Council,
COUNTY OF LARIMER Tuesday, November 20, 1984,
passes and adooteol the f011owin9
Orel nance5 on second reading:
Terese R . Anderson ORDINANCE NO 150. 198<OF
being first duly sworn upon oath, deposes THECOUNCILOFTH E CI TYOF
and says: That said is the I (' i OQO _e of The COlorad FORT COLLINS VACATING ALLoanc EASEMENTS AND RIGHTS OF
that said has personal knowledge of all facts set forth in this affidavit; that The Coloradoan A ING F MIL SECOND POND °N
is a public daily newspaper of general circulation, having its principal office and place of 'No ..
ORDINANCE NO. 151, 1984 OF
business situated in said County of Larimer; that said Coloradoan is printed and published THE COUNCILOF THE CITY OF
FORT NG
daily; that said Coloradoan is a daily newspaper, duly qualified for the purpose set forth SECTIONOS93"ANDiisoF THEE
D THE
within the meaning of Chapter 109, Article 1, Sections 1-1 to 1-8 inclusive of Colorado COLLLINS RELATIINGOTOFORT THE
Revised Statutes 1973, and any amendment thereof passed prior to the date hereof; that FIREMEN'S PENSION FUND
ORDINANsaid newspaper had, prior to January 1, 1936, and has ever since said date been admitted to THE COUNCELOFTHE CITY OF
the United States Mails as second class matter under the provisions of the Act of March 3, FORT COLLINS, BEING ANORDINANCE APPROPRIATING
1879. and an amendments thereof, that said newspaper is printed in whole in said Count FUNANTICIPATED A REVENUE
yp y souacE
of Larimer and has a general circulation therein; that said newspaper has been so printed ORDINANCE NO. ISa, 1984 OF
and published as a public daily newspaper of general circulation in said County of Lar- THE COUNCIL OF THE CITY OF
FORT COLLINS AUTHORIZING
imer, uninterruptedly and continuously, during the period of more than fifty-two consecu- THE CITY MANAGER TO
ENTER NTOANAMENDMENT
tive weeks next prior to the first issue thereof containing the annexed legal notice Of TO THE
MERIT LEASE AGREEWITH COT
advertisement; that said annexed legal notice or advertisement was published In the POOR TION FOF AEP ICKU LEASE
regular and entire editions of said newspaper for TRUCK WITH CREW CAB FOR
SURVEYORS
ORDINANCE NO. 156, 1984 OF
THE COUNCIL OF THE CITY OF
FORT COLLINS APPROPRIAT
ING PRIOR YEAR RESERVES
IN THE CAPITAL PROJECTS
FUND AND AUTHORIZING THE
successive otVkysy Nx day &xevA?M 8M4i*X VAX that the TINS TRANSFER BETWEEN CAPITAL
first publication of said legal notice or advertisement was in the regular and entire edition PROJECTS
of said newspaper on the c6 t h day of N o V 2m b e r A.D. 19_84; that the last AND ORDINANCE NO. 157,1984
publication of said legal notice or advertisement was in the regular and entire edition of of THE ISSUANCE
UANCEOLLINS, FCCIT
OLD
said newspaper on the 96 Ai_t�__ day Of n vehor A.D. 1984 and that
RADO, SALES AND USE TAX REVENUE BONDS, DATED
IN
copies of each number of said paper in which said notice or advertisement was published NOVEMBGATER E 1PBR INCI THE
were delivered by carriers or transmitted by mail to each of the subscribers of said paper, AMEUN ROF $11,0o0EF RHV
according to the accustomed mode of business in this office. r G, INcosi of WHOLE OR IN ACQUIRING,PART,
A-90 CONSTRUCTING NGSTREETSAND AND
HIGHWAYS
FOR THE CITY AND OF PAY-
ING THE PRINCIPAL OF,
/�- IN ON,AND ANY COM-
MI TMENT FEE DUE IN CON-
- NECTION WITH THE
BOND ANTICIPATION NOTE,NOTE,
SERIES FEBRUARY 1, 198
DATED FEBRUARY IN
THE PRINCIPAL AMOUNT
UNTNT
NOT MORE THAN E25,000,000.
ORDINANCE NO. 158,1984
AN ORDINANCE AUTHORIZ-
Subscribed and sworn to before me, at and within the County of Larimer, State of Colorado ING THE ISSUANCE OF CITY
OF FORT COLLINS, COLO
this __. 26th day Of November A.D. 19-54—. BONDS, SERIES 1984,ADO SEWER VENUE
DATED
NOVEM ER 1, 1984, IN THEMy 1`, 1231 AGGREGATE PRINCIPAL
R T, -2^ AMOUNT OF EI1,000,000.
12 Riverside, -t Coiiics, GO C�a_
My commission expires
/ Notary Pubfigl
Oeliveredto_ City Clerk _ •;�-�;i'
-- —
0
ORDINANCE NO. 158, 1984
AN ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF
FORT COLLINS, COLORADO, SEWER REVENUE BONDS,
SERIES 1984, DATED NOVEMBER 1 , 1984 , IN THE
AGGREGATE PRINCIPAL AMOUNT OF $11 ,000 ,000 .
READ, ADOPTED ON SECOND READING, AND ORDERED PUBLISHED ONCE
BY NUMBER AND TITLE ONLY this 20th day of November , 1984 .
CITY OF FORT COLLINS, COLORADO
/(—
(CITY) Mayor
(SEAL)
FTEST:
City Clerk
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