HomeMy WebLinkAboutORDINANCE 0179-1970AN ORDINANCE of the City of Kenai, hlazka, eonftrmln~]
the results of special election:; held on March 18,
1969 and November 4, 1969 within the city; pro-
riding for the issuance of general obligation bonds
for municipal water system improvements in the
principal amount of $215,O00 and general obligation
bonds for sewer system improvements in the principal
amount of $125,000; combining said bonds in one
issue; fixing the date, form, terms, maturities
and covenants thereof; providing for unlimited
tax levies and other funds of the city to pay the
prlncipa! thereof and interest thereon; creating
a construction fund and a bond redemption fund;
authorizing the sale of such bonds; and declaring
an emergency.
WHEREAS, at a 'special election held in the City of Kenai,
Alaska (herein called the "City"), on February 5, 1963, the qualified
electors of the City authorized the issuance of unlimited tax levy general
o~ligatlon bonds of the City in the sum of not to exceed $200,000 for
the purpose of providing funds to pay the cost of acquiring, constructing
and installing certain capital improvements to the water system of the
City; and
WHEHEAS, the proposition approved by the people for the issu-
ance of said bonds provided for a limitation of 65 on the interest that
such bonds could bear; and
WHEREAS, $135,000 of such $200,000 of bonds have been issued
and sold; and
WHEREAS, a~ a special election held in the City on February 5,
1963, the qualified electors of the Clty authorlzed the issuance o~
unlimited tax levy general obllgatio:~ bonds of tho City in the sum of
riot to exceed $100,000 for the purpose of providing fund:~ to pay the
cost of acquiring, constructing and installf, nl; certain capital improve-
ment:', to the sewer system of the City; and
',','J:Ei'.EAS, the propozltJon approved by the peol,!c, for the
ance of sald bon(J.~: provided fOF a 1]mIbatlon of 6~ on the interest that
shch bonds could bear; and
WHEREAS, $75,000 of such $100,000 of bonds have been issued
and sold; and
WHEREAS, at a special election held in the City on November
1969, the qualified electors of the City authorized the removal of
said 6% interest limitation on such general obligation water and sewer
bonds remaining unsold; and
WHkREAS, at a special election held in the City on March 18,
1969, the qualified electors of the City authorized the issuance of
unlimited tax levy general obligation bonds of the City in the principal
amount of $150,000 for the purpose of providing funds to pay the cost
of acquiring, constructing and installing certain capital improvements
to the water supply and distribution of the City, and further authorized
the issuance of unlimited tax levy general obligation bonds of the City
in the principal amount of $100,000 for the purpose of providing funds
to pay the cost of acqui~!ng, constructing and installing certain
capital improvements to the sanitary sewage collection and disposal
system of the City; and
WHEREAS, it is deemed necessary and advi.~able and to the best
interest of the City and its inhabitants that said $~5,000 of general
obligation water bonds remaining unsold, said $150,000 of general obllga-
tlon water bonds authorized, said $25,000 of general obligation sewer
bonds rema~nin~ unr. old, and said $100,000 of general obligation sewer
bonds authorized now be sold at public sale, and that the same be
combined in one issue;
NOW, THEHEFOHE, ]~E IT ORDAI~ED by the Counct! of th~ City
nf Kenal, Alaska, a:~ follows:
the City on March 1}~, 1969, whe?eby th,~ quail fled e?_ector:~ of the Clty
a~w~=d proposltlons fo~ the lzzuance of un].imite5 tax levy
obligation water bondu In the p~]nclpa] amount of $150,000 and un-
limited tax levy general obligation se~e~ bonds In the principal amount
of $100,000 for the purpose of providing funds to pay the cost of ac-
quiring, constructing and installing certain capital improvementz to
the water supply and distribution system and the sanitary sewage collec-
tion and disposal system or the City respectively, is hereby in all
respects ratified and confl~ed.
That the result of the special election held in the City on
November 4, 1969, whereby the qualified electorz of the City adopted
propositions removing the 6% interest limitation on the water general
obligation and sewer general obligation bonds of the City, the issuance
of both of which was authorized at a special election held within the
City on February 5, 1963, is hereby in all respects ratified and con-
firmed.
Section 2. For the purpose of providing funds to pay the
cost of the acquisition, construction and installation of certain
capital improvements to the water supply and distribution system
the City provided for by Resolution No. 58 and Ordinance No. 158-69,
the City shall issue tho $215,000 of general obligation water bonds
heretofore described.
For the purpose of providinE funds to pay the cost of the
acqulsition, construction and in:;tallat:lon of ce.ta.[~ ca~,lt'~l lmp"ove-
ments to the sanitary scwa[]e collection and d[spozal system of th~
City provlded for by Resolution No. 57 and Ordinance No. 1~8-69, the
City shall lsst~e the $125,000 of general obli;~at.[on sewer bond:;
heretofor,~ described.
Said bolld:; si~all be comb]n~d In on,3 [:~,:,.,, her,~i::~f'ter
the "[~ond:~."
:-:,.f'J:.].,:r~, ~:.. ';h,' ~o~,u:; :,bali be ,lat,~d AF, r;1 1, ].2'(O,
be tn thu uenomtr,;~tl~,n of $~,O00 eact,, shall bear Jntere:;t at a rate
of not to exce,~,J 5~ pe~' f~nnu:r, payable on the f'Jrnt day of October,
1970 and ~emiannually on the first days of Apr'~] and October of each
year thereafter a:; evidenced by coupons to be attached thereto, and
~hall be numbered and mature In order of theiP number as follows:
Bond Nos. Maturl~ Date Amount
Bor, d IIo:;. Matur~ ty Date Amount
1-2 Aprll 1, ]972 $10,000 25-28 April 1, 1982 $20,000
3-4 April 1, 1973 10,000 29-32 April 1, 1983 20,000
5-6 April 1, 19Y4 10,000 33-36 April 1, ]98;~ 20,000
?-8 April 1, 1975 10,000 37-40 April 1, 1985 20,060
9-10 April 1, 1976 10,000 41-;~5 April 1, 1986 25,000
11-12 Aprll 1, 1977 10,000 46-50 April 1, 1987 25,000
13-15 April 1, 1978 15,000 51-56 April 1, 1988 30,000
16-18 April 1, 1979 15,000 5?-62 AD~.I1 1, 1989 30,000
19-21 April 1, 1980 15,000 63-68 April 1, 1990 30,000
22-24 April 1, 1981 15,000
(The above maturity schedule computed at an interest rate of 7 l/2%)
Both principal of and three, cst on the Bonds shall be payable in
lawful money of the United States of America at the main office of the
Seattle Trust and Savings Bank in Seattle, Washington, or at the option
of the holder at the Kenai Branch, Alaska State Bank, in Kenat, Alaska,
or at the main office of the Chemical Bank New York Trust Company in
New York, New YorK.
Section a. The City hereby reserves the right to redeem the
Bonds in whole, or in part in inverse numerical order, at the follow,n!;
times and at the followinM prices expressed a.~ a percent.ge of the
principal amount, plus accrued interest to the date of r. edemptton:
On Apr],l 1 and October 'l, 1980, at 1Oil
On April ]. ~nd October 1, 1981, at 103
On April 1 and October 1, 1982, at 102
On Ap~'ll 1 and Octol-,er l, lP83, IlL lOl
On Apmtl 1, 198~ and any interest paymunt da',~ thu~(,;,Vter,, at 100.
Notlee of' any suc}l Intend(.,d i'ed(~mption :;hal. 1 ~,,~ ;~Ive~l I.y one
publication the~co~' in a bu;:]neos and
['oPty no~. ]u:;:; than th].~.ty ~b]y:; p~,~;, t(, :'.~ld ~',~d..~4~ '.~,~ ,:;.t,~, aD~ by
Of th,.' lburct~,'~,':c'r:; of tt~e I;on,,':; at ~,he:Jr :,~tc b;! thc, City tc
off~ce, or to the ~ucce:;zor i~, bu:;'~ne:;~';, if ~ny, of said purc'l,a:;er
account manrq,.cr at Itz main o!'flce, Int.~rezt on any Bond or
called for redemption shal~ cea.ze on zuch rederaption date un]¢:.';s the
same are not redeemed upon pre.';entat,ton made pur;;uant to m~ch zall.
Section 5. The Bonds shall be in subztantlally the follow, inf.
form;
UIII?ZD STATES OF AMERICA
STATE OF ALASKA
No. $5,000
OENERAL PURPOSE
OENERAL OBLIGATION BOND, 1970
The City of Kenat, a municipal corporation of the State of
Alaska (herein called the "City") ,for value received hereby promises
to pay to bearer on the first day of April, 19__, the principal sum of
FIVE THOUSAND DOLLARS
with interest thereon at the rate of ~% per annum payable on the
first day of October, 1970 and semiannually on the first days of
April and Octobe- of each year thereafter upon presentat'!on and sur-
render of the attached interest coupons as they severally become due,
or until such principal amount shall have been paid or duly provided
fOP.
Both p~incipal of and ~nterest on this bond are payable ~n
lawful money of the Ur. ired States of America at the main office of
the Seattle Trust and Saints Bank in Seattle, Washingtnn, or at the
option of the holder at the Kenal Branch, Alaska State Hank, in
Kenai, Alaska, or at tho main off]ce of the Chemical Bank New York
Trust Company In New Ye, k, New York.
Tho City has reser';od the Plight to redeem th,', bond;~ of
Issue In whole~ or tn part ].n Inver:ie numerical ordi~r, lit l,l:e
the principal n~iount, plus accrued [nterezt to thc dar,: .,I'
On April ] and Octoher 1, 1980, at 104
On April I and October l, I')U], nt 1()~
fin Apr'Il. I, 19~11 alld (~Iu; llll,,rPc;'t Dh;Interior d:;t,~ b/~erctlft~'P, i{1. lull.
Not.tee ,,r lilly :iU(:)I Int,.ndp,l r~..I,q;pl 1~)11 :lmll. he ;11v,,~
than lib nor ,L-.'::; than ';¢) dh:l:; prior ~o ::;xld rc, d,:mptlort date~ ;~nd L.,'i
rnalli:l;~ a llk~ not. Joe at the :;a~,e tlme to
This bond is one of an i:;zue of slzty-etF;i,t bonds of like
amount, date arid tenor except as to number, interest rate and date
of maturity, aggregating the principal amount of ~3 0,000 and is
issue(] pursuant to the Constitution and laws of the State of Alaska,
votes of the qualified electors of the City, and the Charter and duly
adopted ordinances and resolutions of the City, for the purpose of
providing funds to pay the cost of acquiring, constructing and in-
stalling certain capital improvements to the water supply and dis-
tribution system and the sanitary sewage collection and disposal
system of the City.
The City has irrevocably covenanted that it will levy and
collect ad valorem taxes annually upon all the tax,bl~ property
within the City without limitation as to rate or amount and in amounts
sufficient, with other moneys on hand and legally available for such
purpose, to pay the principal of and interest on the bonds of this
issue as the s~e shall become due. For ~he annual levy and collec-
tion of such taxes and the prompt payment of such principal and
interest the full faith, credit and resources of the City are hereby
i~revocably pledged.
It is hereby certified and declared that all acts, cond[$fons
and thing~ requ~ed by the Constttutfon ~nd laws of the State of
Alaska and thc Charter, ordinsnces and resolutlons of the C~ty
to be done prec,~dent to and in t~e issuance o~' this bond have
happened, been done and performed, ~,,~d ti~at t;;~ total 'tnd~-thtedne:::~
of the City tncludlng th]~ bond and the bond:; of thlt; issue (locl;
not exceed ally debt ltmltablon pve:;cvlt,cd hy :;uch Cl~arSeP.
iN WITNESS WItEIiLOF, the Ctgy of genal, AJn:;k~,
this bond to be sll~ned by its Moyor', to be atl. c:;ted t.,y It:; Cl(~r'k,
the c,l'I']cl, al seal of the CIty to be bnprez:,ed }~c.v~.on, and tim
]tll,Ul't':;t coliporl~; ;ltta,thod ht.reto to I)u :;li':,-,I '../iii, 1.1.,.
Illj211:~l,lll'(':; ~J' ::aid of'f'Jeir~!t;, tl~i:; I'lr::t ~1'.',, ~l' /.nvi',
CJ.'J'7 0!,' ~l';;2A.i, /:I,/:2'31</;
By
Mayor
City Clerk
The interest coupon:; attached to the Bonds shall be in sub-
stantially the following form:
NO.
On the first day of
$
the City of
Kenat, Alaska, will pay to bearer at the main office of the
Seattle Trust and Savings Bank in Seattle, Washington, or at
the option of the holder at the Renal Branch, Alaska State
Bank, in Kenai, Alaska, or at the main office of the Chemical
Bank New York Trust Company in New York, New York, the amount
shown hereon in lawful money of the United States of America,
said amount being the semiannual interest due that date on
its General Purpose General Obligation Bond dated April 1, 1970
and numbered .
CITY OF KENAI, ALASKA
By
Mayor
ATTEST:
C~.ty Clerk
Section 6. The Bonds shall be sl;;ned on behalf of' tho City
by Itn Idnyo~', nhnll be attested by its Clerk, and shall
corporate sea]. of tho City impress:ed thereon. Each of ti~o lnterezt
coupon:: attached thereto shall be signed w.~th i,h~ fac:slnl~le s t~nhtures
of said officials.
Seetl. on Y. That there be :md ~:~ hereby cr(~nt~'d
l'u:ld of bhe City Lo be known as 1,}{~ "Kc. iial ]9]'0 W~.l,,~ nnd
sb,.ucb[on Fund." '{'hu proc,,~,d:; of tim ;;ale o~' L{~,~ {~.,Hd:;
'/.
177
accrued Int~.re:;t, which ~h~ll bc paid into th~. t~ond I(ed(mptlor) Fund
hereinafter creatural) ~ha].i be paid lnto sl~ch Con:: tructl on Fund.
$215,000 of such proceeds shall be used for thc purpose of paylnt~ the
cost of acquiring, constructing and Installing the capltal improvement:;
to the water supply and dlztributlon system of tho City as hereinbefore
provided; and $125,000 of such proceeds shall be used for the purpose
of paying the cost of acquiring, constructing and in::talling the capital
improvements to the sanitary sewage c~ectton and dispooal system of
the City as hereinbefore provided. Any other moneys which the City may
have on hand and need for such purposes shall also be paid into such
Construction Fund.
In the event there are any moneys left in such Construction
Fund from the proceeds of the sale of the Bonds after all costs of
such improvements and coots incidental thereto have been paid, the same
shall be transferred to the Bond Redemption Fund hereinafter created for
the uses and purposes herein provided. In the event there are any moneys
left in such Construction Fund from other moneys which may have been paid
therein by the City after all costs of such improvements and costs
incidental thereto have been paid, t~e same shall be returned to the
fund of the City which advanced the same.
Section~_8.. That there be and is hereby created a special fund
of the City to be known as the °'genal 1970 General Purpoce General
Obligation Bond Redemption Fund" (herein called the "Bond l~edemptton
Fund"). which fund is to be dragon upon for the sole purpose of paylnM
t.. principal of and interest on the Bon~s
and payable.
The City hereby irrevocably coven~n~t,; that it will make annual
levles of ad valorem taxe~ upon all the taxal,'le pr,)r)erty wlthln thc Ct. ty
w~.tl.)~. .l. lm[batlo~l an to rate or amou~lt ;za(l ~t~ ~,m~'.~n;.z ~:uff'.[e[ent, w~th
f?? ~'
as the ~;;'~m,? ;;ha. fl b,~,;~,m,, due. '5'h,: fuji f'a~Lh~... .
~he C].ty are her'eL?/ Jmrevocal, 17 pled~?d ro~ the annual levy and co].lec-
~lon of such Laze:; and fop tho p~'omp% payr~,,~n% of such pplnc].pal and
tn~eres~.
The City hereby furLhep ip~evocably eo"enant:~ that 1% w~.ll pay
ln~o such Bond Redemption Fund all chapges hemetofore established fop
connecgions wi~h ~he wa~em supply and dis~mibu%lon system and the san~-
BaP~ sewage collection and disposal system as ~he same amc collected.
All of such ~axes and connec%lon charges so co]lecLed shall be
paid tnBo such Bond Redemption Fund a~ leas~ Bhl~y days p~io~ %o the
da%es upon which any installment, of inBePes% on oP pz'incfpal of and
in~e~es~ on ~he Bonds shall become due and payable, In amounts sufficlenB
Bo pay such Installments as %he same shall become due. All of Bhe moneys
so paid inBo ~he Bond Redemption Fund may be used only fez, ~he payment
Bhe principal of~ pmemtum tf any, and in~emes~ on Bhe Bonds.
The Ct~y may also pay such amounts of the gmoss earnings and
~evenue of igs wa~e~ supply and dls~Ibu~ion and sani~ar}~ sewage eollec-
~ion and disposal sysBems in~o such Bond Redemption Fund as shall be deemed
necessary and advJ. sable by ~he Cit~ Council.
In Bhe even% any special assessments a~,e levied aga'lnst
p~opergtes which will be benofl~ed by ~he acqu~slLlon, cons~mzet/on anu
lnsBallat].on of %he ]mpr, ovemen~s %o be made out of %he proceeds of tim
sal(~ of ~he Bonds, Bhe dlLy hereby covenant:; and ngree:~ %ha% such assess-
menL5 wi].], be pal~l Jn%o ~he Hond Hedempgton Fund ~'oz' tl~e us;e:: and
he Pe ~.n pz'ovJdod.
~o~t~. '1'no Bond:~ shall be :~o]d aL publ]~ ~a](~, and the
City Clo~k or any other a~ent or peppe:mnt'~t.tvu o1' the (~tty 1:: authct.~zc, d
to a(lvortl, g~e th,~ Bond:~ for :;a3. e ~n such mann(?z- a:~ I;; de,,m(,d
/ V '1 '/
for the
Chambers of the City Council, Kenal, Alaska, until 10:00 A.M. Alaska
Standard Time, and slmultaneouzly in the off'i, ce of Preston, Thorgrimson,
Starln, Ellis & }{oIman, 2000 IBI4 Building, Seattle, WashlnKton, until
12:00 o'clock noon Pacific Standard Time, on April 8, 1970.
Said bids will be considered and acted upon at a meeting of
the City Council to be held at 7:30 P.M. Alaska Standard Time on the
same date.
Upon the sale of the Bonds the proper officials of the City are
hereby authorized and directed to do everything necessary for the prompt
issuance and delivery of the Bonds and for the proper use and appllca-
tion of the proceeds of such sale.
Section lO. Because of the great need of the City to obtain
the proceeds of sale of the Bonds at the earliest possible date, an
emergency is hereby declared to exist, and the rules governing the
reading, passage and approval of ordinances of the City are hereby sus-
pended. It is hereby found and declared that it is necessary for the
immediate preservation of the public welfare, pcace, health and welfare
that this ordinance become effective i~,mediately upon its passage,
approval and publication.
This ordinance shall be published by posting a copy hereof
on the official City bulletin board for a period of ten days Immed~.ately
following its passage and approval.
PASSED by the Council of the City of Kena%, Alaska, and
approved by i~s Mayor at a regular meeting of said Coun~l held on the
18th day of March, 1970, after notice thereof g.l. ven a:; provided by lnw.
ATTEST:
APPI{OVED:
(,ity AtL()I'I,cLV
CITY OF KENAI, ~I,ASKA
] O.
I, FRANCES TORKILSEN, the duly appointed, qualified and
acting City Clerk of the City of Kenal, Alar~ka, DO IIEI~EBY CEhTiFY
that the foregoing is a true and correct copy of Ordinance No.
of said city, duly passed by its Council and approved by its Mayor
at a regular meeting of said Council held on the 18th day of March,
1970, after notice thereof given as provided by law.
City Clerk