HomeMy WebLinkAboutORDINANCE 0582-1980CITY OF KENAI
ALASKA
ORDINANCE NO. 582-80
AN ORDINANCE OF THE CITY OF KENA1, ALASKA,
PROVIDING FOR THE ISSUANCE OF $400,000 GEN-
ERAL OBLIGATION BONDS OF THE CITY AND FIX-
ING DETAILS OF SAID BONDS.
WHEREAS, pursuant to Resolution No. 80-32 of the City
passed and approved on March 19, 1980, the following question:
PROPOSITION
City Administration Building
Pursuant to Resolution No. 80-32 shall the City of
Kenai, Alaska, be authorized to incur indebtedness �1
and to issue Its general obligation bonds or other
such evidence of indebtedness In an amount or
amounts as needed, and not to exceed in the aggre-
gate FOUR HUNDRED THOUSAND DOLLARS
($400,000), for the purpose of providinga portion
of the funds for planning, designing, acquiring,
constructing, Improving, and equipping a City
Administration Building capital improvement in the
City, and to pledge the full faith and credit of the
City for the payment of the principal and interest
on the bonds or other such evidence of Indebted-
ness? Said general obligation bonds or other such
evidence of indebtedness are to mature within 30
years from the date of issue and are to bear inter-
est at a rate not to exceed the maximum rate per-
mitted by law.
(herein called the "Proposition") was passed and approved by a vote of
124 for and 121 against the Proposition at the special election held in
the City on April 9, 1980, and said election has been duly canvassed
and the results Viereof certified and confirmed in accordance with law;
and
� I-
J
M
a .
CITY OF KENAI Page 2
ORDINANCE NO. 582-80
WHEREAS, the City Council of the City of Kenai has deter-
mined and does hereby determine that It is necessary to proceed with
the planning, designing, acquiring, constructing, improving and equip-
ping of a City Administration Building capital Improvement in the City
(all hereinafter collectively referred to as the "Project"); and
WHEREAS, it is deemed necessary and advisable and In the
best interests of the City and its Inhabitants that $400,000 principal
amount of the general obligation bonds, referred to in the Proposition,
be issued at this time in a single series, as hereinafter fixed and
determined, for the purpose of raising funds to pay the cost of con-
structing and acquiring the Project;
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF
THE CITY OF KENAI, as follows:
Section 1. Definitions. The following terms shall have the
following meanings in the Ordinance:
(a) "Bonds" shall mean any of the City of Kenai General
Obligation Bonds, 1980, issued pursuant to the Ordinance as the
evidence of the indebtedness referred to In the Proposition.
(b) "City" shall mean the City nf Kenai, a municipal cor-
poration of the State of Alaska, organized as a home rule city
pursuant to Title 29 of the Alaska Statutes and the Charter of the
City of Kenai, Alaska.
(c) "Cost" shall mean thcf cost of acquiring and developing
the Project, including Interest on the Bonds prior to and during
CITY OF KENAI
ORDINANCE NO. 582-80
Page 3
the period of acquiring and developing the Project, and reasonable
fees of the Paying Agents for the payment of such interest, the
cost whether Incurred by the City or another of field surveys and
advance planning undertaken in connection with the Project prop-
erly allocable to the Project and the cost of acquisition of any land
or interest therein required as the site of the Project or for use In
connection therewith, the cost of preparation of the site of the
Project and of any land to be used in connection therewith, the
cost of any indemnity and surety bonds and premiums on insurance
Incurred In connection with the Project prior to or during con-
struction thereof and all related direct administrative and inspec-
tion expenses whether incurred by it or by another in connection
with the Project prior to or during construction thereof and alloc-
able portions of direct costs of the City, legal fees, fees and
expenses of the Paying Agents, cost of Issuance of the Bonds by
the City and financing charges and fees and expenses of bond
counsid, financial advisors and consultants in connection therewith,
costs of audits, the cost of all machinery, apparatus and equip-
ment, cost of engineering, architectural services, design, plans,
specifications and surveys, estimates of cost, the reimbursement of
all moneys advanced from whatever source, for the payment of any
item or items of cost of the Project, and all other expenses neces-
sary or incident to determining the feasibility or practicability of
the Project, and such other expenses not specified herein as may
a
A
H
{
I
2 -,
e.�
CITY OF KENAI
ORDINANCE NO. 582-80
Page 4
be necessary or incident to the acquisition and development of the
Project, the financing thereof and the placing of the same In use
and operation.
(d) "Ordinance" shall mean this Ordinance of the City.
(e) "Paying Agent" and "Principal Paying Agent" shall mean
the banks, trust companies, or national banking associations appoin-
ted by the City pursuant to Section 18 hereof.
Section 2. Autho-ity for Ordinance. The City has ascer-
tained and hereby determines that each and every matter and thing as
to which provision is made in this Ordinance is necessary in order to
carry out and effectuate the purposes of the City in accordance with
the Constitution and statutes of the State of Alaska and the Charter of
the City, and to incur the indebtedness and issue the Bonds as re-
ferred to in the Proposition.
Section 3. Purpose and Authorization of Bonds. For the
purpose of raising funds to pay the cost of acquiring and developing
the Project as authorized by the Proposition, which, in accordance with
the Proposition is hereby determined to be necessary, general obligation
bonds of the City referred to in the Proposition, each to be designated
"City of Kenai General Obligation Bond, 198011, shall be issued in the
aggregate principal amount of FOUR HUNDRED THOUSAND DOLLARS
($400,000) as a single issue and sold at public sale or at private sale
Including sale to the Alaska Municipal Bond Bank on a date to be set
by resolution of the Council passed prior to the sale.
CITY OF KENAI Page 5
ORDINANCE NO. 582-80
Section 4. Date and Maturities of Bonds. The Bonds shall
mature on August 1 In the following amounts in the years set opposite
such amounts:
Maturity
August 1
Amounts
1982
;10,000
1983
10,000
1984
10,000
1985
10,000
1986
15,000
1987
15,000
1988
15,000
1989
15,000
1990
20,000
1991
20,000
1992
20,000
1993
20,000
1994
26,000
1995
25,000
1996
30,000
1997
30,000
1998
35,000
i999
35,000
2000
40,000
Section S. Payment Dates, Form and Numbering of Bonds.
Each Bond shall bear interest from its date payable on the first days of
February and August in each year beginning August 1, 1981 at such
rate or rates per annum as may be fixed and determined by resolution
adopted prior to the delivery thereof.
The Bonds shall be coupon in form and payable to bearer and
registrable as to principal alone as herein provided, or, in the case of
sale to the Alaska Municipal Bond Bank, in the form of one fully regls-
■
v
CITY OF KENAI
ORDINANCE NO, 582-80
Page 6
tered bond without coupons and payable to the Alaska Municipal Bond
i
Bank. The Bonds coupon in form (herein called "coupon Bonds") shall
I
each be of the denomination of Five Thousand Dollars ($5,000). The
coupon Bonds and the registered Bond shall be, respectively, sub-
stantially In the forms of such Bonds hereinafter set forth with such
appropriate variations, omissions or Insertions as are permitted or
I
required by this Ordinance or any resolution of the City adopted pur-
suant to the provisions of this Ordinance and may have endorsed there -
an such legends or text as may be necessary or appropriate to conform
i to the rules and regulations of any governmental authority, or any
usage or requirement of law with respect thereto. The coupon Bonds
shall be numbered from one upwards in order of maturity.
Section 6. Details of Bonds. The coupon Bonds shall be
dated and bear Interest from August 1, 1980. The registered Bond
shall bear Interest from its date, and shall be dated as of the date of
.l
Its issuance, or as of August 1, 1980 at the election of the City.
Each of the Bonds shall be signed by the manual or facsimile
signature of the Mayor, and the official seal of the City (or a facsimile
i
r thereof) shall be affixed, imprinted or otherwise reproduced on the
Bonds, and attested by the manual or facsimile signature of the City
I,
} Clerk. The coupons attached to the coupon Bonds shall be executed
'I
with the facsimile signature of the City Clerk. In case any officer
whose signature or facsimile of whose signature shall appear on any
Bond or coupon shall cease to 'be such officer before the delivery of
i CITY OF KENAI page 7
ORDINANCE NO, 582-80
such Bond, such signature or such facsimile shall nevertheless b, valid
and sufficient for all purposes the same as If he had remained in office
until such delivery.
In the event both the signature of the Mayor and the signa-
ture of the Clerk are in facsimile form, the Bonds shall contain a certi-
ficate of a Paying Agent certifying the authentication of such signatures
In the follow!ng firm:
PAYING AGENT'S CERTIFICATE
OF AUTHENTICATION
This Bond is one of the Bonds described in the
within mentioned Ordinance and the signatures
Imprinted hereon are the authentic signatures in
facsimile of the Mayor and Clerk of the City.
(Name)
Paying Agent
By
Authorized Offfcer
Both the principal and redemption price of and the interest
on the Bonds shall be payable In any coin or currency of the United
States of America which, at the respective dates of payment thereof, is
legal tender for the payment of public and private debts.
The principal and the interest on all coupon Bonds shall be
payable at the principal office of the Paying Agents. Payment of the
Interest on the coupon Bonds shall be made only upon presentation and
surrender of the coupons, if any, representing such interest as the
same respectively fall due, The interest on the registered Bond shall
,.,
-_ e ---- -= A
ff,
a ,
W,.
CITY Of KENAI Page 8
ORDINANCE NO. 582-80
be paid on each interest payment date to the Alaska Municipal Bond
Bank or its registered assigns.
Section 7. Exchange of Registered Bond. The registered
Bond, upon surrender thereof at the principal office of the City, to-
gether with an assignment duly executed by the registered owner or his
attorney in such form as shall be satisfactory to the City, may, at the
option of the registered owner thereof, be exchanged for an equal
aggregate principal amount of coupon Bonds with coupons attached
reprEbenting all unpaid interest due or to become due thereon.
Section S. Negotiability of Bonds. Title to any coupon ,.
Bond, unless such Bond is registered as to principal in the manner
hereinafter provided, and to any interest coupon, shall pass by deli-
very in the same manner as a negotiable Instrument payable to bearer.
At the option of the bearer, any coupon Bond may be registered as to
principal alone on books for the registration and transfer of Bonds,
kept by the Principal Paying Agent as Bond Registrar, upon presenta-
tion thereof to the Principal Paying Agent, which shall make notation of
such registration thereon. Any such Bond registered as to principal
alone may thereafter be transferred only upon an assignment duly
executed by the registered owner or his attorney in such form as shall
be satisfactory to the Principal Paying Agent such transfer to be made
on such books and endorsed o►i the Bond by the Principal Paying
Agent. Such transfer may be to bearer and thereby transferability by
delivery shall be restored subject, however, to successive registrations
-A.
CITY OF KENAI
ORDINANCE NO. 582-80
Page 9
and transfers as before. Registration of any coupon Bond as to prin-
cipal, however, shall not affect the negotiability by delivery of the
coupons ap
pertaining ppertaining to such Bond, but every such coupon shall con-
e
�• tinue to pass by delivery merely and shall remain payable to bearer.
IIi
li Section 9. Transfer of Registered Bond, Delivery of New
Bonds and Fees of City and Principal Paying Agent. The registered
I
Bond may be transferred only upon books of the City kept for the
registration and transfer of the Bond, upon presentation thereof at the
office of the City, together with an assignment duly executed by the
registered owner or his attorney in such form as shall be satisfactory
to the City. Upon the transfer of the registered Bond, the City shall
i
! make notation of such transfer thereon.
In the case in which the registered Bond shall be exchanged,
k
there shall be executed, and the City shall authenticate and deliver,
coupon Bonds in accordance with the provisions of this Ordinance. The
Bond surrendered in any such exchange shall forthwith be cancelled by
z
the City. The City and the Principal Paying Agent may make a charge
for every registration, exchange or transfer of Bonds sufficient to
reimburse them for any tax, fee or other governmental charge required
to be paid with respect to such registration, exchange, or transfer, or
any other charges of the City incurred in connection therewith, and
such charge or charges shall be paid before any such new Bond shall
be delivered. Neither the City nor the Principal Paying Agent shall be
required to make any such registration, exchange, or transfer of a
71,
CITY Of KENAI
ORDINANCE NO. 582-80
Page 10
Bond during the ten (10) days next preceding an interest payment date
on such Bond.
Section 10. Ownership of Registered Bonds. As to the
registered Bond or any coupon Bond registered as to principal other
than bearer, the person in whose name the same shall be registered
shall be deemed and regarded as the absolute owner thereof for all
purposes, and payment of or on account of the principal on such Bond
and the interest on the registered Bond shall be made only to ai, upon
the order of the registered owner thereof or his legal representative,
but such registration may be changed as hereinabove provided. All
such payments shall be valid and effectual to satisfy and discharge the
liability upon such Bond, including the interest thereon to the extent of
the sum or sums so paid. The City and the Paying Agents may deem
and treat the bearer of any coupon Bond registered to bearer or not
registered as to principal, and the bearer of any coupon appertaining
to any coupon Bonds, whether or not coupon Bond shall be regis-
tered as to principal, as the absolute owner of such Bond or coupon,
as the case may be, for the purpose of receiving payment thereof and
for all other purposes whatsoever, and neither the City nor the Paying
Agent shall be affected by any notice to the contrary.
I
Section 11. Ulutilated, Destroyed, Stolen or Lost Bonds. in
case any Bond shall become mutilated or be destroyed, stolen, or lost,
the City may cause to be executed, and delivered, a new Bond of like
Interest rate, principal amount and maturity in exchange and substitu-
IM
CITY OF KENAI
ORDINANCE NO. 582-80
Page 11
tion for and upon cancellation of such mutilated Bond and its interest
coupons, if any, in lieu of and in substitution for such Bond
destroyed, stolen or lost, and Its coupons, if any, upon the holder
paying the reasonable expenses and charges of the City in connection
therewith and, in the case of a Bond destroyed, stolen or lost, his
filing with the City evidence satisfactory to it that such Bond or
coupons, if any, were destroyed, stolen or lost, and of his ownership
thereof, and furnishing the City with indemnity satisfactory to it. Any
new Bond so delivered may bear a number differing from the number on
the Bond it replaces.
Section 12. Exchange of Bonds. The City shall make provi-
sion for the exchange of Bonds at the principal office of the Principal
Paying Agent, and shall cause books to be kept by the Principal Paying
Agent, as Bond Registrar, for the registration and transfer of Bonds
as provided in this Ordinance, except that the books for the registered
Bond shall be kept at the office of the City.
Section 13. Redemption of Bonds. The Bonds maturing on
or after August 1, 1991 shall be subject to redemption by or on behalf
of the City prior to maturity and upon notice as hereinafter provided,
as a whole or In part in inverse order of maturity on any interest
payment date on or after August 1, 1990, at a redemption price equal
to the principal amount of each Bond to be redeemed, together with
4nterest accrued thereon to the redemption date.
LVWI"j rN0 1"W==W ram. "
r ' s j
Al=s �,
CITY OF KENAI Page 12
ORDINANCE NO. 582-80
If less than all of the Bonds of like maturity are to be re-
deemed, the particular Bonds to be redeemed shall be selected In in-
verse numerical order.
Section 14, Notice of Redemption. When the City determines
to redeem any Bonds, it shall give notice of such redemption, which
notice shall state the redemption date and Identify the Bonds to be
redeemed by reference to their numbers and further state that on such
redemption date there shall become due and payable upon each such
Bond the principal amount thereof (hereinafter in this Ordinance re-
ferred to as the "Redemption Price") together with interest accrued to
i
the redemption date, and that from and after such date interest thereon
shall cease to accrue. Such notice shall be given by mailing notice to
the registered owner of each Bond at the address kept on the books of
the City and by publication at least once not less than sixty days prior
to the redemption date in a newspaper which is customarily published at
least once a day for at least five days (other than legal holidays) In
each calendar week, printed in the English language, and published in
one newspaper of general circulation In the Borough of Manhattan, City
and State of New York; or the City of Seattle, Washington. In the
event all Bonds are registered, no publication shall be required.
Section 15. Payment of Redeemed Bonds. Notice of redemp-
tion having been given in the manner provided in Section 14, the Bonds
so called for redemption shall become due and payable on the redemp-
tion date stated in said notice at the applicable Redemption Price on
CITY OF KENAI
ORDINANCE NO. 582-80
Page 13
said date plus interest accrued and unpaid to the redemption date, and,
upon presentation and surrender thereof, at the principal office of the
Paying Agent or in the case of the registered Bond, at the office of the
City, together with, in the case of Bonds registered otherwise than to
bearer, a written instrument of transfer duly executed by the
registered owner or his duly authorized attorney and, in the case of
Bonds not registered as to interest, all appurtenant coupons maturing
subsequent to the redemption date, such Bonds shall be paid at the
said Redemption Price plus interest accrued and unpaid to the redemp-
tion date not represented by coupons for matured Interest Installments.
AN Interest Installments represented by coupons which shall have
matured on or prior to the redemption date shall continue to be payable
to the bearers of such coupons. If, on the redemption date, moneys
for the redemption of all the Bonds to be redeemed, together with
interest accrued and unpaid to the redemption date, shall be held on
behalf of the City at the principal office of the Paying Agents so as to
be available therefor on said date and if notice of redemption shall have
been published as aforesaid, then from and after the redemption date
the Bonds so called for redemption shall cease to bear interest and the
coupons for Interest appertaining thereto maturing subsequent to the
redemption date shall be void and said Bonds and coupons shall no
longer be considered as outstanding hereunder.
Section 16. Form of Coupon Bond. Each coupon Bond, the
coupons to be attached thereto and the provisions for registration to be
L
111
e
CITY OF KENAI
ORDINANCE NO. 582-80
Page 14
endorsed thereon, If any, shall be, respectively, in substantially the
form following with such variations, omissions and insertions as may be
required or permitted by this Ordinance and as may be required by any
resolution or resolutions adopted by the City.
No. ...........
UNITED STATES OF AMERICA
STATE OF ALASKA
CITY OF KENAI
General Obligation Bond
1980
$5,000
The City of Kenai, a municipal corporation of the State of
Alaska, for value received, acknowledges itself Indebted and hereby
promises to pay to the bearer or, if this bond be registered as herein
provided, the registered owner hereof, on the first day of August,
19 , upon presentation and surrender hereof, the principal sum of
Five Thousand Dollars ($5,000), and to pay interest on such principal
sum from the date hereof until the City's obligation with respect to the
payment of such principal sum shall be discharged, at the rate of
per centum (_%) per annum, payable on August 1,
1981, and semi-annually thereafter in each year on the first day of
February and August, but only, In case of interest due at or before
maturity of this bond, according to the tenor of the respective coupons
therefor annexed hereto and upon presentation and surrender of said
coupons as they severally become due. The principal of, and interest
--'-=-- - - -- - - -- -- ---- ---_ -- - --
-
CITY OF KENAI
ORDINANCE NO. 582-80
Page 15
on this bond, when due, will be payable at the principal office In t ;c
(hereinafter called the
"Principal Paying Agent"), or at the option of the holder, at the prin-
cipal office In the
(hereinafter collectively, together with the Principal Paying Agent,
called the "Paying Agents"), In any coin or currency of the United
States of America which at the time of payment is legal tender for the
payment of public and private debts.
I
The bond is one of the General Obligation Bonds, 1980, of
the City of Kenai, Alaska, of like tenor and effect except as to interest
rates, serial number and maturity, is one of a series of the Bonds
aggregating $400,000 in principal amount authorized to pay a portion of
the cost of planning, designing, acquiring, constructing, improving and
.quipping of a City Administration Building capital improvement in the
City with the question of their issuance for such purpose approved and
ratified by a majority vote of the qualified voters of the City who voted
on a Proposition authorizing the Bonds at the special election held on
April 9, 1980, pursuant to Resolution No. 80-32 of the City passed on
March 19, 1980, and is issued pursuant to Ordinance No. 582-80 of the
City (herein called the "Ordinance").
The Bonds are numbered from one consecutively upwards in
f order of maturity.
The Bonds maturing on or after August 1, 1991, are subject
1
to redemption by or on behalf of the City prior to maturity and upon
P�
0
.J
CITY OF KENAI Page 16
ORDINANCE NO. 582-80
notice as set forth in the Ordinance, as a whole or In part In inverse
order of maturity on any interest payment date on or after August 1,
1990, at the principal amount of each Bond to be redeemed, together
with Interest accrued thereon to the redemption date.
i
If less than all of the Bonds of like maturity are to be re-
deemed, the particular Bonds to be redeemed shall be redeemed In
Inverse numerical order as provided in the Ordinance.
i
This bond is transferable by delivery, unless registered as to
principal other than to bearer. It may be registered as to principal in
the name of the bearer on the books of the City kept for the purpose
at the principal office of the Principal Paying Agent, such registration
to be noted hereon, after which no transfer hereof shall be valid unless
made on said books by the registered owner hereof in person or by his
attorney duly authorized in writing, and similarly noted hereon; but
this bond may be discharged from registration by being in like manner
transferred to bearer, after which it shall again become transferable by
delivery. This bond may again, from time to time, be registered or
discharged from registration in the same manner. Such registration,
however, shall not affect the negotiability by delivery of the coupons
appertaining hereto, which shall continue to pass by delivery merely
and shall remain payable to bearer. The City and the Paying Agents of
the City may treat and consider the bearer of this bond or, if it be
registered as herein provided, the person In whose name it Is regis-
tered, as the holder and absolute owner of this bond for the purpose of
�L)
I',
CITY OF KENAI
ORDINANCE NO. 582-80
Page 17
receiving payment of, or on account of, the principal hereof and for all
other purposes whatever except for the purpose of receiving payment of
coupons, and may treat and consider the bearer of any coupon apper-
taining hereto as the holder and absolute owner thereof for the purpose
of receiving payment thereof and fur all other purposes whatsoever.
The Bonds are issuable in the form of coupon Bonds In the
denomination of $5,000.
This bond Is a general obligation of the City of Kenai,
Alaska, and the full faith and credit of the City are pledged for the
payment of the principal of and interest on this bond as the same shall
become due.
IT IS HEREBY CERTIFIED AND RECITED that all conditions,
acts or things required by the Constitution and laws of the State of
Alaska and the Charter of the City of Kenai to exist, to have happened
or to have been performed precedent to or in the issuance of this
bond, exist, have happened and have been performed, and that the
Issue of Bonds of which this is one, together with all cther indebted-
ness of the City, is within every debt and other limit prescribed by
said Constitution, statutes or Charter.
IN WITNESS WHEREOF, THE CITY OF KENAI has caused this
bond to be signed in Its name and on its behalf by the manual or
facsimile signature of the Mayor and Its corporate seal (or a facsimile
thereof) to be hereunto affixed, imprinted or otherwise reproduced, and
attested by the manual or facsimile signature of the City Clerk, and
K
i
CITY OF KENAI
ORDINANCE NO, $82-80
Page 18
coupons for interest, bearing and signed by the facsimile signature of
the Clerk, to be attached hereto, all as of the first day of August,
1980.
Mayor •
(SEAL)
ATTEST:
City Clerk
FORM OF PROVISIONS FOR REGISTRATION
Notice: No Writing Below Except by the
Paying Agent as Registrar
Authorized
Date of Name of Signature of
Registration Registered Owner Registrar
.................. ..........................
.................. ..........................
.................. ......................... ..........................
.................. ......................... ..........................
FORM OF COUPONS
No. ............... $.............
On the first day of _ , 19 , the City of
Kenai will pay to the bearer at the principal office in the
f , .
CITY OF KENAI Page 19
ORDINANCE NO. 582-80
a Paying Agent of the City, or at the option of the
holder, at the principal office in the
a Paying Agent of the City, upon surrender
of this coupon, Dollars ($ ), in any
coin or currency of the United States of America which at the time of
payment is legal tender for the payment of public and private debts,
being six months interest then due on its City of Kenai General Obliga-
tion Bond, 1980. No . .....................
City Clerk
City of Kenai
Section 17. Form of Fully Registered Bond. The fully regis-
tered Bond shall be in substantially the form of the coupon Bonds
hereinabove set forth with such insertions or variations as may be
required or permitted by the Ordinance, except that there shall be no
coupons to be attached thereto and that the first, second, fourth, fifth
and ninth paragraphs thereof shall be in substantially the following
forms respectively:
FIRST PARAGRAPH
The City of Kenai, a municipal corporation of the State of Alaska,
acknowledges itself indebted and for value received hereby promises to
pay to Alaska Municipal Bond Bank or registered assigns, the principal
sum of Four Hundred Thousand Dollars ($400,000) in the following
J
I
1
4
CITY OF KENAI Page 20
ORDINANCE NO. 582-80
installments on August 1 of each of the following years, and to pay to
the registered owner
hereof interest on each such installment from the
date hereof until the
City's obligation with respect to the payment of
such installment shad
be discharged, on the first days of February and
August of each year,
beginning August 1, 1981, as follows:
Maturity
interest
August 1
Amount Rate
1982
$10,000
1983
10,000
1984
10,000
1985
10,000
1986
15,000
1987
15,000
1988
15,000
1989
15,000
1990
20,000
1991
20,000
1992
20,000
1993
20,000
1994
25,000
1995
25,000
1996
30,000
1997
30,000
1998
35,000
1999
35,000
2000
40,000
This Bond, as to principal
and interest when due, will be payable at
the office of the City
in any coin or currency of the United States of
America which at the time of payment is legal tender for the payment of
public and private debts.
SECOND PARAGRAPH
This Bond is the single
registered Bond of the series of Bonds entitled
General Obligation Bond, 1980, of the City of Kenai, Alaska, aggregat-
1 11
M .
I
CITY OF KENAI Page 21
ORDINANCE NO. 582-80
ing $400,000 In principal amount authorized for the purpose of pro-
viding funds to pay a portion of the cost of planning, designing,
acquiring, constructing, improving and equipping of a City Administra-
tion Building capital improvement in the City, with the question of their
issuance for such purposes approved and ratified by majority vote of
the qualified voters of the City who voted on a Proposition authorizing
the Bonds at the special election held on April 9, 1980, and Is issued
pursuant to Ordinance No. 582.80 of the City (herein called the "Ordi-
nance").
FOURTH PARAGRAPH
The installments of this Bond becoming due on or after August 1, 1991,
are subject to redemption by or on behalf of the City prior to maturity
and upon notice as set forth In the Ordinance as a whole or in part in
Inverse order of maturity on any Interest payment date on or after
August 1, 1990 at a redemption price calculated with respect to each
Installment or portion thereof to be redeemed equal to the amount
thereof, plus accrued interest to the date of redemption.
FIFTH PARAGRAPH
This Bond is transferable, as provided in the Ordinance, only upon the
books of the City kept for that purpose at the principal office of the
City by the registered owner hereof In person or by his attorney duly
authorized in writing upon surrender hereof together with a written
Instrument of transfer satisfactory to the City duly executed by the
registered owner or such duly authorized attorney. At the option of
M.
• CITY OF KENAI Page 22
ORDINANCE NO. 582-80
the registered owner, the City shall Issue coupon Bonds with appro-
priate coupons attached, of the same aggregate principal amount as the
surrendered Bond as provided in the Ordinance and upon the payment
of the charges therein prescribed. The City may treat and consider
the person in whose name this Bond is registered as the holder and
absolute owner hereof for the purpose of receiving payment of, or on
account of, the principal hereof and Interest due hereon and for all
other purposes whatsoever.
NINTH PARAGRAPH
IN WITNESS WHEREOF, THE CITY OF KENAI has caused this
bond to be signed in its name and on its behalf by the manual signa-
ture of the Mayor and the official seal of the City (or a facsimile there-
of) to be affixed, imprinted, or otherwise reproduced hereon, and
attested by the manual or facsimile signature of the City Clerk, all as
of the day of , 19
(S E A L)
ATTEST:
City Clerk
W .
Mayor
�~ ' �i■� _ — .w.r.u..,u.y..c—'---- — _..e..�.-,,�,�o. ._-tea— -- ..r - T � -- -- -
FF
i
CITY OF KENAI
ORDINANCE NO. 582-80
Page 23
Section 18. Paying Agents. One or more Paying Agents
shall be appointed by a resolution adopted by the City prior to the time
of sale of the Bonds, unless the Bonds are sold at private sale in the
form of a single registered bond to the Alaska Municipal Bond Bank, in
which case no Paying Agents nee be appointed by the City until such
time as the Alaska Municipal Bond Bank shall elect to exchange the
single registered Bond for coupon Bonds. The City shall Indemnify and
save harmless the Paying Agents against any liabilities which they may
Incur in the exercise and performance of their powers and duties as
Paying Agents which are not due to their negligence or default, and
shall pay their reasonable charges for their services as Paying Agents.
The Paying Agents may become the owners of or may deal in Bonds, as
fully and with the same rights as if they were not Paying Agents.
Section 19. Authority - f Officars. The Mayor, City Manager,
Finance Director and the City Clerk, are, and each of them hereby is
authorized and directed to do and perform all things and determine all
matters not determined by this Ordinance or to be determined by a
subsequent ordinance or resolution of the City, to the end that the
City may carry out its obligations under the Bonds and this Ordinance.
Section 20. Miscellaneous.
(a) All payments made by the City of, or on account of, the
principal of or interest on the Bonds shall be made on the several
Bonds ratably and in proportion to the amount due thereon respectively
for principal or interest as the case may be.
A
a -,
ay
W
CITY OF KENAI Page 24
ORDINANCE NO. 582-80
(b) No recourse :,hall be had for the payment of the princi-
pal of or the interest on the Bonds or for any claim based thereon or
on this Ordinance against any member of the City Council or officer of
the City or any person executing the Bonds. The Bonds are not and
shall not be In any way a debt or liability of the State of Alaska or of
any political subdivision thereof, except the City, and do not and shall
not create or constitute any indebtedness or obligation, either logal,
moral or otherwise, of said State or of any said political subdivision
thereof, except the City, and neither said State, nor any said political
subdivision, except the City, shall be liable on the Bonds, and the
Bonds are not and shall not be payable out of any funds other than
those of the City.
Section 21. Sale of Bonds. The Bonds shall be sold at
public or private sale, including sale to the Ales!ca Municipal Bond
Bank, upon such terms and conditions as may be fi).ed and determined
by a resolution adopted by the City Council prior to the time of sale.
Section 22. Arbitrage Covenant. The City covenants with
the holders of all Bonds at any time outstanding that it will make no
use of the proceeds of the Bonds which will cause the bonds to be
"arbitrage bonds" subject to federal income taxation by reason of Sec-
tion 103(c) of the Internal Revenue Code of 1954. To that end, so long
as any of the Bonds are outstanding, the City, with respect to the
proceeds of the Bonds, shall comply with all requirements of said Sec-
tion 103(c) and of all regulations of the United States Department of the
di
1
CITY OF KENAI
ORDINANCE NO. 582-80
Page 25
Treasury issued thereunder, to the extent that such requirements are,
at the time, applicable and in effect.
Section 23. Variation of Terms. The amount, date, maturi-
ties, payment ciates and redemption provisions of the Bonds may be
varied or changed by the City Council by resolution adopted prior to
the time of sale.
Section 24. Obligation of Bonds. The Bonds shall be direct
and general obligations of the City and the full faith and credit of the
City are hereby pledged to the payment of the principal of and interest
on the Bonds.
Section 25. Pledge. The City hereby Irrevocably pledges
and covenants that it will levy and collect taxes upon all taxable prop-
erty within the City without limitation as to rate or amount, in amounts
sufficient, together with ^ther funds available therefor, to pay principal
and interest on the Bonds as the same become due and payable.
PASSED by the Council of the City of Kenai, Alaska, this
=- 16th day of July, 1980.
VINCENT O'REILLY.
ATTEST:
J ET WHELAN, City Clerk First Readings July 2, 1980
Seccnd Readings July 16, 1980
Effective Date: August 16, 1980
A
a .
w
s•
a 41�
/• LAW iF i'iG Vh
WOIiLFORTH & FLINT
CUM 4 WAMLPAkTM A r1141401r _1,W"AfAel',ff
ROU¢RT9,FLINT '100Wtr.!°.::Ayl1101 au .
ttf .44 fLepwolr
TIfAOTHV 6, MIUULEfON AarA f;,,pr WJ1
PEUR AROETIIINOER Af4CH611At71:. ALAUKA t 91)01 276,640f
W. J. PAT 00RODY
July 9, 1980
Mr. Charles A. Brown
Finance Director
City of Kenai
P. 0. Box 580
i Kenai, Alaska 99611
Res $400,000 City of Kenai General
Obligation Bond Sale
Dear Mr. Browns
As we discussed Monday morning, enclosed is a revised version
of City of Kenai Ordinance No. 592-80 suitable for action by the
City Council at its meeting on July 16, 1980.
Most of the changes made relate to the Alaska Municipal Bond
Bank maturity schedule set out by Foster & Marshall, Inc. in
their recent letter which differed from that contained in the City
of Kenai application to AMBBA. The other change is that of the
first interest payment date from February 1, 1981 to August 1,
1981, again to conform to the AMBBA bonds.
For your convenience you may find the changes an followss
1. Section l (e) - section reference chan.
to 18; ;e from 16
2. Section 4 - updated maturity schedules
3. Section 5 - insertion of August 1, 1981 interest
payment dates
4. Section 3.3 - revised to provide for redemption
prior to maturity now that bond terms are longer than ten
years;
5. Sections 14 and 15 (new) - provide for redemption
and succeeding sections are renumbered as follows;
6. Section 16 - bond form revised to provide for
August 1, 19131 interest payment date and redemption of
bonds prior to maturity;
a
lb k�
Mr. Charles A. Brown
July 9, 1980
Page Two
7. Section 17 - changed to provide in registered
bond form for updated maturity schedule and redemption of
bonds prior to maturity.
Also enclosed is the resolution providing for sale of the
bonds to AMBBA with attached Loan Agreement by which the Mayor is
authorized to execute the Loan Agreement at an interest rate not
to exceed eight percent. For your information, the notice of
sale of the AMBBA bonds provides that no bid over eight percent
will be accepted. Presumably if all bids come in over eight
percent a period of negotiation and regrouping will immediately
begin. You may want to discuss his intentions in that regard
with David Rose as you get a chance.
If the enclosed documents prompt any questions, please feel
free to call Tim Middleton of this office as it appears I will be
unavailable the major part of the next two weeks.
We are prepared to have one of the partners of this firm
i attend the City Council meeting on July 16. However, your advice
is sought in that regard, particularly in view of our recent
discussion on keeping down costs of the issue.
Very truly yours,
a Pete Argetsinger
(; PA/iw
Enclosure
cc$ Mr. David A. Rose
Executive Director-AMBBA
Ben T. Delahay, Esq.
City Attorney