HomeMy WebLinkAboutORDINANCE 0174-1970 ORDI)IANC~ NO. ~
AN ORDI:~ANCE of the C~ty of Kens1,
eonfi~in~ the ~e~ult of a ~peetal elec~lon
held ~he~etn on 2ay I~, 1969; p~ov~dtn~ fo~
~he issu~oe ~d sale of $25,000 of elee~lc
1t~ and powe~ revenue bonds of ~he
fo~ ~he purpose cf p~ovtdin~ f~d. ~o pay
~he co~ of acqu/~/ng, const~uo~Ln6, In-
stall/nE ~d ~ktng certain addtt/ons,
Improvements ~d ~epat~s ~o and ex~en.tons
of t~. 1t~ ~d powe~ ~ys~em, all as mo~e
specifically p~ovtded tn O~dtn~e ~o. 170-69 *
of the oily passed Ap~tl 2~ 1969; fixing the
~e, fo~, ~e~s, matu~t~tes ~d eoven~s
of such bonds; c~eattng a Con~t~ctton
c~eattng a Bond F~d fo~ ~he pay~nt of the
p~tnctpal of ~d tnte~es~ on said bonds;
p~ovlding ~d adopting certain coven~
~d p~o~ec~tve features safesu~dLn8 the
pay~n~ of such p~lnotpal ~d
~ese~ing ~he ~t~t tn ~he ctW ~o
p~Lo~ lie. ~evenue bond.; ~d declaring
~ emergency.
WJ~REAS, at a special election held tn the Ct~Y of Kens1,
~.. '.Alaska (hereinafter called the "City") on ~y 13, 19~9, p~suant
*:'f $o '~he City Cha~e~, ~o O~din~ee ~o. 170-69 ~d othe~ ~solutlons
.~d' o~dtn~ces off the Co~ctl of ~he Clty, She qualtffted electors
.':."/'*~he~eof autho~.zed ~he tssu~ee of ~evenue bonds of ~he City tn a
-' :, ~ of no~ ~o exceed $~50,000 fo~ ~he pu~ose of p~oVi~tng f~d~
:.. ~o pay ~he cos~ of acquiring, constructing, Installing and mak~n~
certain additions, Improvements and repairs to and ex~ension~ of
the City's 11gh~ and power system, all as mote spectflgally pro-
v~ded ~n said 0~dtnance* No. 170-69; ~d
W~ERE~, t~ ts necessary ~d ~o ~he best Interests of
City ~d 1~ Inhabitants that $25,000 of said bonds be now
~d ~old fo~ such pu~pose~ and that ~he date, fo~, ~a~,
~tes ~d covenant~ ~hereof be fixed;
~0W, THE~FO~, BE IT ORDAINED by the City Council of
~he City of Kenai, Alaska, as follow~:
Se~R~_A. Definitions. As used in this oPdinance unless
a dj flu.vent me~nlng clearly appeaPs f~om the context:
"Bond" or "Bonds" means any of the bonds of. the City the
"Bond Fund" means the Kena! 1969 Electric I, tght an~ ~er*- '~;'~"~-~
Revenue Bond Fund creel;ed by Section ].1 of' this ordinance.
"City" means the Ci~;y of' Kenat~ a municipal corporation
of the State of Alaska.
· "Outstanding Prior Lien Bonds" means the outstanding
Electric Lisht and Power Revenue Bonds of. the City issued under
dates of October 1, 1963, September 1, 1964, ~d October 1, 1967.
"System" me~s the exist/n8 electric 1i~t ~d po~e~
~ystem of the City as the 9~ ~t11 be a~ded to, improved ~d ex-
tended as autho=tzed ~d p~ovlded in this o~dtn~ce, ~d as ~he
6~ ~y be added to, improved ~d extended fo~ as long as any of
the ~nd~ ~e outsC~dZna.
Seetto~~. Election Result~ Conftmed. The ~esul~s of
· ~he special electiop held In the City on ~ay 1~, 1969, ~hereby
the ~equlst~e majority of the qualified electors off the Ct~y
adopted a p~opost~ton p~ovtdln6 fo~ the lssu~oe off not to exceed
$~0,000 of ~evenue bonds of the Ct~y fo~ the pu~ose of p~ovldtn8
f~ds to p~y p~ o~ all off ~he cost of acquiring, const~ucttng,
in,tailing ~d maktns ee~atn addt~tons, ~mp~ovements ~d ~epat~
~o ~d extensions of the S~stem, all as mo~e specifically p~ovtded
Ln O~dln~ce No. 170-69, 8~e tn all ~espeots ~a~tfted ~d confl~,ed,
Section 3, Autho~tzatton oF Bond~. To p~ovtde fund~ to
pay part of the cost of acquiring, constructing, Installtn~
making part of. the improvements to the System as provided
Section 2 hereof, the City shall issue and sell the Bonds.
Section ~. Description Of Bonds. The Bonds ~hall be
da~ed Novembe~ 1, 1969, shall ~e in ~ne denomination of.~,000
each, shall bear interest a~ ~he rate of 6~ per annum payable
semiannually on the first days of May and November of each
ffrom date of ls~ue as evidenced by coupons agtaehed thereto, end
shall be n~ered ~d mature on ghe First day of November a~
follows:
Bond Nos.
Maturlty Year
Amount
1 197~ $5,000
2 1975 5,000
3 1976 5,000
~ 1977 5,000
5' 1978 5,000
Place and Medium of Payment.
SectlonS.
Both principal
of and interest on the Bonds shall be payable in lawful money of
; ~he United States of America at the National Bank of Alaska, Kenai,
Alaska.
.~eotion 6. RiEht of Prior Redemption. The City of. Kenai
hereby reserves the right to redeem any or all of the Bonds
'u ......'-oqt~tanding at pa~ plus accrued interest on ~y interest payment
· ,' ~-. d on and afte~ Nove~e~ 1, 197~.
.............. Notice of ~y such intended ~edemption shall be ~iven by
.'. ' one publication thereof in a newspape;~ of ~ene~al ei~culation
.., : ': the C~y of Kenai, Alaska, not mo~e th~ fo~y no~ le~s
. , days p~o~ to such ~edempt~on date ~d by mailing a like no,ice at
".. the s~e t~me to ~ne o~i~inal pu~chase~ of said Bonds aC thei~
sale by the City. Interest' on ~Y Bond o~ Bonds so e~11ed fo~
redemption shall cease'on such ~edemption date ~less ~he 9~e a~e
' 'riot redeemed upon presentation made pursuit to such call.
Section 7. Fo~ of Bonds and Coupon~. The Bonds shall
be in substantially the followlng fo~m:
UNITED STATES OF AMERICA
NO, $5,000
STATE OF ALASKA
CITY OF KENAI
ELECTRIC LIGHT AND POWER REVENUE BOND, 1969
KNOW ALL :;EN BY THESE ?RESENTS:
That the City of Een.~t (hereln,~fter called the "City"),
a municipal corporation of the State of Alaska, for value
received hereby promises to pay to bearer on the first day
of November, 19 ..... , the principal sum of
FIVE THOUSAND DOLLARS
together with interest thereon atthe mate of 65 per annum
payable on the first days of May and November of each year
from date hereof upon presentation and surrender of the
attached interest coupons as they severally become due, or
until the payment of such principal sum shall have been
~mde or duly provided for.
~oth principal of and interest on th~s bond are payable
in lawful money of the United States of America at the
National Bank of Alaska, Kenai, Alaska, solely out of the
special fund of the City known as "Eenai 1969 Elect.-lc
LiSht and Power Revenue Bond Fund" created by Ol-dinance
No. /~.~ (hereinafter called the "Bond Ordinance").
The City has reserved the z, lg, ht to redeem any or all
of the bonds of this issue 'at par plus accrued interest
on any interest payment date on and after November 1, 197~.
Notice of any redemption Of any of the bonds of this
issue shall be given by one publication thereof in a
newspaper of Eeneral circulation in the City, not more than
forty nor less than thi~ty days prior to such redemption
date and by mailing a llke notice at the same time to the
original purchaser of said bonds at their sale by the City.
This bond is 'one of an issue of five bonds of like
a~o~nt, date and tenor except as to number and date o£
maturity, aggregating the principal sum of $25,000, and
is issued pursuant to the laws of the State of Alaska,
tile Charter o£ the City, a vote of ~he duly qualified
electors of the City and duly adopted ordinances and reso-
lutions thereof, for the purpose of providing funds to .
pay part of the cost of acquiring, constructing, installtn~
and making certain additions, improvements and repairs to
and extensions of the electric light and power System of the City
(as such System is defined in the Bond Ordinance), all as
more specifically provided in the Bond Ordinance. All of
the bonds of this issue are payable solely out of the
gross revenue of the System and all additions and improve-
merits thereto and extensions thereoF°
The City hereby covenants and agrees with the owner
and holder of this bond that it will keep and perfo~
all of the covenants of this bond and of the Bond Ordinance
to be by it kept and perforated.
The City does hereby pledge and bind itself to set
aside £rom the money tn it5 Elect;to iii;hi and Power
Revenue Fund created by O~dinanee No. 5~ of the City, and
to pay into and maintain in said 1969 Bond Fund the variou~
amounts r.~quired by said ordinance to be paid into and
maintained in said Fund, all within the time= provided by
said ordinance. The City has further pledged and bound
itself to pay into 6aid Electric Light and Power Revenue
~und as collected all of the gross earnings and revenue
derived by the City £~om the ope~ation of the System and
all additions and imp~ovement~ thereto and extennions
thereof.
Said amounts so pledged are hereby declared to be a
prior lien and charge upon the money in said Electric L£1~ht
and Power ltevenue Fund superior to all oth~? charge~ o~ any
kind or nature except the necessary eost:~ of' matt~tenance
and operation of ~.h.~ System, and the charges necessary to
pay and :;ecure the payment of the principal of and interest
on ~he Out.~tanding Prior Lien Bonds (as defined in the
Bond Ordinance) and any electric li~t ~d power ~evenue
bondo of the City which may late~ be issued on a parity
with said Outst~ding P~ior Lien Bonds.
The City has further bound itself to maintain said
System In good condition ~d ~epair, to operate the s~e
in ~ efficient m~ner ~d at a reasonable.cost, ~d ~o
'establish, main:sin ~d collect rates ~d cha~ges for light
~d.power for as long as ~y of the bonds of this issue a~e
outst~ding that will provide ~evenue available for revenue
bond debt service in ~ ~o~t equal to at least 1.~
times the avePage ~nual ~o~ required to pay the pPin-
cipa! .~f ~d interest on such bonds as ~he s~e shall
become due, afte~ no~al costs of mainten~ce and Operation
of said System ~d pay~nts requi~ed to pay and secure
the paymen~ of ~he p~incipal o~ ~d in~e~es~ on.~y p~ioP
lien bonds have been paid, but before depreciation and ~y
taxes or payments in lieu of ~axes have been paid to the
City.
It is hereby certified and declared ~ha~ this bond
~d the bonds of this issue are issued pursuit to and
in ~'ict compliance With the Cons~itution and laws of
the State of Alaska and the Charter ~d ~rdinance~ of the
City, and that all acts, conditions ~d things required
to be done precedent to and in the issuance of this bond
have happened, ~een done and performed.
IN WITNESS WHEREO~', the City of Kenai, Alaska, has
caused ~his bond ~o be signed by its Mayor, to be attested
by its Cl.:rk, the corporate seal of the City to be
lmpre~,'d hereon, and the interest coupons attaohed hereto
to be ~igned with the facsimile signatures of said offi-
cials, this first day of November, 1969,
CITY O~ KENAI, AL~SgA
By
~ayor
'ATTEST
City Clerk
The interest coupons attached to the BOnds shall be in
substantially the followinE form:
$ l 0.0
On ~he f~rst day of , 19'___, the
C~ty of gena~, Alaska~ w~ll pay to bearer at the
Bank of Alaska, Eenai, ~laska, the amount ~hown hereon in
la~ful ~oney of the United State~ of A~eriea ou~ of the
special fund of the CLty known as "~enai 19~9 Electric
~iSht and Power ~evenue Bond Fund," said sum being the
~e~iannual interest due that day on its Electric Light
and Power ~evenue Bond dated ~ove~ber 1~ 19~9, and num-
bered .
By
~ayor
ATTEST:
City Clerk
Section 8. Execution of Bondc and Coupon..'_',. The Bonds
~hall be signed on behalf of the City by its ~,iayor, ,~d~..,.!! be
attested by the City Clerk, and shall have ~he co~poz'ate seal
o~ ~he C~ty ~p~o~ed thereon. The ~n~e~e~ eoupon~ ~aohod to
t~e Bond~ ~1 be ~ed '~th the facsimile st~atu~e~ off 9aid
offtctal~,
Section ~. Con~t~uctlon Fund. ~e~e ts hereby crea~ed
~pect~l fund of the City to be known as ~he "~enat ~t~t ~d Po~e~
Const~ue~lon Fund." The p~oceeds of sale of the Bonds (exoep~
accrued tnte~es~, ~tch ~hall be paid tn~o the Bond F~d) ~hall be
paid tn~o such Construction F~d ~d shall be used fo~ ~he sole
purpose of acqul~tng, eon~ucttng, In, tailing ~d making ~he im-
,p~ovemen~s to the System as hereinbefore authorized and paying all
* .the expen~e~ Incidental ~he~eto.
Section 10. ~L~t ~d ~o~e~ Revenue F~d, ~e~e ha~ been
o~eated by Section 7 of O~dtn~ce ~o, 5~ a special ff~d off the
known as 'genat 1963 Electrlc ~1~t ~d ~o~e~ Revenue F~d" (he~e-
.: tnaf~e~ called ~he 'Reven~ Fund")~ tn~o ~htch F~d shall be
deposL~ed as collected all of ~he ~oss eam~nss ~d ~evenue o~
t~ System. All oo~s off m~tn~a~ntn~ ~d ope~attn~ the System,
~y payment~ ~htch mtgh~ be ~de to the City ffo~ taxes o~ tn lieu
' of ~axes, all payments ~equt~ed by ~hls o~dtn~ce ~o be made tn~o
the Bond Fund he~etnafte~ c~ea~e~, all payments ~htoh may now o~
he~eafte~ be requt~ed to be made tn payment of ~he p~tnctpal of
~d tn~e~e,t on ~y bond~ of ~he C~ty ~d ~htch a~e o~ ~tll be a
... charge upon such earthS, a~d ~evenue. all co,t, of addltion,,
betterment,, t~p~ove~ent, ~d ~epa~s to ~d ~eplacemen~, and ex-
~enslon~ o~ the ~y,tem (except ~hen the ~ame a~.e ftn~ced by
In~uance of bond,), and all o~he~ lesal end p~ope~ expenses of the
~y~tem ~d cha~ge~ a~a~nst the ~evenue thereof..hall be paid out
of ~[d Fund.
Soctlon il. ~e,at 1~,9 ~lect~tc Lizht and Po.,~e~ Revenue
~ Bond Fund. There 2z hePoby created a upectal fund of tho ~lty to
be 2no~vn au the "Kenat 1969 Electric L~ght and Powe~ Revenue Bond
Fund," here~-~ called ~he "Bond Fund,'" which F~ld ~s to be drawn
upon for the .:,:]e pu~po3e of paytnE the p~ineipal of ~d
on the Bond~,
From and ~fte~ the time off issu~oe ~d delivery of the
Bonds and a~ long ~hereafter as ~y of ~he ~e ~e~n
the City hereby Irrevocably obltgate~ ~d binds itself to ~e~
~d pay tn~o ~he Bond Fund out of the Reve,ue Fund a~ least
day~ prior to the respective date8 on ~hteh payments of ~he lnter-
e~ on or principal of ~d lnterest on the Bonds shal! beoo~ due,
the ~ounts necesoary ~o p~y ~uch tnteres~ or principal ~d inter-
: · es~ nex~ coming due on the Bonds outs~dtn~.
Said ~o~ts so pledzed ~o be paLd ~nto ~he Bond F~d
are hereby declared to be a 1te~ ~d charge upon ~he revenue off the
System ~d ~he money~ tn the Revenue ~d supe~to~ ~o all other
· .. oharge~ of ~y kind or nature, except the necessary costs of
~tnten~ce ~d oPeration.off the Sys~e~ ~d the charges necee~ary
, to pay ~he principal of ~d interest on ~he Ou~st~dtng
' ~en Bonds ~d ~y bonds hereafter issued on 2 partly ~lth sald
Outs~dlns P~to~ ~len Bonds.
~" Section 12, Adequae~ 'of Revenue,. ~e co~o~a~e autho~t-
tle~ of ~he City hereby declare that tn ftx~pg ~he ~ounts to be
paid ~nto ~he Bond Fund they have eXe~ctsed due ~ega~d fo~ the
co~t of maintenance and ope~a~ton of the System and deb~ settee
" .on Out~t~dtng ~to~ Lien Bond~ ~d hsve not obltga~ed the Clty
to set aside ~d pay 1nrc the Bond F~d a gr, ea~e~ ~ount o~ p~o-
portion of ~he revenue of said System than tn ~hetr ~udgmen~
be available ove~ and above ~uch cost of maintenance and
and deb~ ~e~vtce.
Section 1~. ~eetflc Covenants. The City of
hereby covenants with tho owne~ and holder of each of the Uond~
follows:
9.
A. That it will establish, maintain and collect rate~
8nd chargeo for electric light and power for aa long as any of the
Bonds are outotanding that will provide revenue available for
revenue bond debt service in an amount equal to at least
the average ~nnual amount required to pay the principal if and
interest on the Bonds as the same shall become due after no~mal
costs of mai~tenance and operation of the System and payments
required to pay and secure the payment of the principal of and
interest on any prior lien bonds have been paid, but before de-
preciation ~d any taxes or payments in lieu of taxes have been paid
~o the
B. That it will at all times maintain and keep the
System in ~ood repair, ~orking orde~ and condition end will aV all
times operate ~he System and the business in connection therewith
l~..anef£icient manner and at a ~easonable cost.
~ C. That it will keep or cause to be kept the works,
plants and facilities comprts/n~ the properties of the System
Insured, ~nd ~111 carry ,uch other Insurance, ~lth
insurers, with policies payable to the City, against f~re and other
rlsks, accidents or casualties at least to the extent and of the
kinds that such insurance ts usually carried'by corporations oper-
ating like properties in ~he s~e area.
D. Tha~ it ~tll not furnt~h or supply electric energy
'or any other conu~odity or ~orvice through or in connectl~n with
the operation of the propertte, of the System free of charge to
any per,on, firm or co~poratton, publlc or private.
Section l~l. ~l.__IE.~_to I~sue Prior Lien Bond::. The Clty
hereby further covenant~ and agrees with the owner~ and holders of
each of the Bond~ fo~ as long as the same remain outstanding
it will ~ot i:~sue any bond~ having a prior or equal lien on the
~avenue~ of I:i.c ::y~tem or the money~ in the Revenue Fund ~o pay
and ~eeu.~e t~e pay~n~ of th~ ~,~ncipal of ~d ~nte~e~ on
bond~ ~ the lien c~eated th~t~eon ~o p~y ~d ~ecu~e ~he payment
of the princi~al of ~d ln~er,t~t on ~he Bond~ except that the
City hereby ex~e~ly ~e~e~ tho ~t~t ~o l~ue bond~ (t~cl~dln~
~he ~e~tnt~.6 bond~ of ~ht~ autho~lz~ton) on 8 pa~t~y ~t~h the
Ou~s~dtng F~to~ ~ten Bonds upon eomplt~ee ~t~h ~he ~e~s ~d
oondt~tons f/xed fo~ the t~uance off ~ueh bond~ ~d to pledge
~he p~yments to be made out of ~he R~venue F~d to pay and seeu~e
~he p~y~en~ ~ the p~tnctp~l of ~d tnte~s~ on ~ueh bonds
.oo~s~ttu~e B lien ~d cha~ge on the ~evenue~ of ~he ~ys~em and
~he money~ tn the Revenue F~d ~to~ ~d ~upe~to~ to ~he 1ten
ch~ze upon such ~evenue~ ~d moneys ~o pay the pPl~etp~l of ~d
t~e~es~ on the
Seett~ ~.. :unto~ ~ten Bonds,, Nothing herein contained
shall p~even~ ~he City f~om issuing elee~te li~t ~d po~e~
~ven~ bond~ vhtc~ a~e ~ oh~6e upon She ~even~ of ~he
o~ the money tn the Revenue F~d ~to~ o~ ~e~to~ ~o the ~By~n~s
to be made tn~o ~he So~d Fuhd a~d ~he Reserve Aeeoun~ e~e~ed
thereto, or f~om issuing ~ueh bond~ to ~eff~d bondD o~
fo~ ~he paymen~ of ~htch mo~eys e~e no~ othe~t~e ~vatlable.
Seotton 16. F~oceed~ of Sale. ~e p~oceeds of the
of tho Sond~, exclu~tve of aee~ued Interest, if ~ny, ~htch Dhall be
.paid into ~he Bond Redemption Fund~ sh~11 be u~ed solely fo~
pu~oses p~ovtded ~n ~octton 2 of tht~ o~dtnance.
The City offtctal~ a~e hereby ~u~ho~t~d ~d directed
do everything necessary fo~ the taeu~nee, execution and delivery
of the Uond~ to the pu~ch~se~ thereof, and fo~ tho p~ope~ u~e
~ppltc~tton of the money de~tved f~om ~uch Gele.
11.
as the Council of the City shall decide.
Section 17. Emergency Declared. /m emergency Xs hereby
declared to exist, a~d the rules gover~ing the introduction,
reading, passage and approval of this ordinance are hereby suspended
~d thls ordinance shall be e£fecttve immediately upon its
~nd approval.
Section 18. PublXcatXon of OrdXn~ee. Publteat~on
thLs o~d~n~ee shall be made by postinS a copy hereof on ~he
City ~ulletXn board for a per~od off ten days ffollow~ns its passage
· ~d app~ovsL.
PASSED by ~he council of the City off Ken~, ~laska, ~d
approved by X~s ~ayor ~hXs ~. day of ~,
CXTY
ATTEST:
, ' .
I, 1.:{;l{CgS TORKILgEff, the duly chosen, qualified ~d
that the foregoing ~S a true ~d co~ec~ copy of O~din~ee ~o. ~
of ~aid c~y, duly pa~ed by ~t~ Council ~d 8pp~oved by ~ts ~ayo~