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HomeMy WebLinkAboutORDINANCE 0124-1967AN ORDINA~qCi. '" the Cfty of' K,:r, af, Ajar, Pa, authorfzfnf; tt~e ts~ua~: "and f,~]e of $390,0:;9 p;,r val,~,' e]ectrlc l~[cht a:.~ ; O;:,3r revenue bon6:~ of th" city for purpose' of t,ro*.'ldin~ funds %o acquire, and iT]J%;~l, certain addi%lons and improv,:?.~:n%:; ~o and extensio:,~ of the light and powt.~ syster~ of the city aG au~Lorlz"~i DY Ordinanc*: No. 107-67 of' t~e city and by t~,~ q~alifted vot,..rs of the city at a special election n..]~] within th~' city on February 2~, ]967; ~he paym..;,~ of 5he principal of and lnteres~ on bonds ~a;~ creatin~ a r.s.~/e account therein; a construction fund; providing and adop%~n~ coveDant5 gnd protec~ive fea~u~e~ safcguavdln~ such payment~; r.::~t, rvir~g %he ri~h~ in ~he city to ~GGUed U~On compl~arJce with certain cont~Itions; and declarin~ an emergency. WHEREAS, pursuant to Orcinance No, 107-67 of the City Of Ken~i, Alaska (nc. reinafter called the "City"), passed and approved January 18, 1967, a proposition fo~ ~he acqutsltlou, con~Lruc~on ~d ins~alla~ion of c~r~ain addi~ions a~d imp~ovemonts ~o ~nd extensions of th~ li~h~ and power ~ystem of ~he C~%y and the t~uznce of ~evenue bonds of ~he City tn the asgPega%e prlnc~p81 sum ~f no~ ~o exceed $~00~000 ~o pa~ ~he e~ ~bereof, was to %n, qualifie~ voters of the City fop thei~ rattf~cation o~ ~e~ectlon at a sp.,cial election held therein on February 28, 1967; and · number of rogers voting at said election; and W}IEHEAS, ~% i~) deemed necessary ~hat the C~y now ,~1 of sold 3~00,000 of bond~ so ~u%ho~Izv,], ~o mon::y ns, ce:;zat;y to c~rry out ::aid plan of addlt~,ma and ~;,i,~". ,' ~;', ~o ar;'t e;,t,'nr;l(,r,~ of :alrl e],2ctrtc limbs al~d po;t'.'~' Cy;;bZr:; ::.': WEJ~E?.A.~, t~.: City ires l:;::uerl and no',/ r,.~:~ out;;~al;rl;r~; rta~-,d~ni~ l';,m~%Y :"~:;'::"" and d,.:;crlb"d In :;ubi,ar:,~YaPh c of' :',.,..t~ot. · ., ~Cd,[ .,, 0[' ',~,[:; O~';~4:' ':' , , ',,n'*'), ~ "" h'S'/' :~ ~ .F.,t ' - - payment of th... priL 1;.':. L:..~z',.ot' ar~'l lnL,;r.;;L theft:on upon th,' t~r', :.', a~e required Lo b, ~,-~: ~ l~.to Lhr~ "~";~:~I 1~6~ E]"CL~"c I. ICLL Po~ter' i~.w.r~ue Fu:.: ,,( L.,, ~2; and ~,0. o ty , WHEHEAZ, :,~nanee~; Ilo. 5~ ~d " 70 f' t..: C~ which th~. bere~r,r.f'., r ~:entton,:.d "Outstand~.ng Parity Bond~;" p~ov~d, d ~n Sectio.:; J;' t. hur,:of that additional lt~9~t and po'~,.r ~evenu, bond~; p:~ya~.~" out of the fr. one~ in ~ueh ~J. ght and Fund could be is;;u,.'~ on a parity with ~atd "Out:;tandtn~3 ParJ. ty ~f c,,rt,tn condJtior~.', we~ ~,et: and WH~;Ri';A;',. it appearz to tht~ Counc~ that ~aid ~[ be ~:~et and that It ts to the best tnt(.re~t of the City ~nhab~tant~ tha~ th'.- bor~d~ autborlz :.~ :;ere~n be i~.~ued on a parity with ~he "OutstandlnS Parity NOW, 'fIH,)d;VOi~R, BE IT OHDAIN~D by the Council of th,~ City ~f Kena~, Alaska, a~ fo!lou~: ~ectio, 1. A~ u~ed ~n this ordinanc,~, the followJm; ~(,rds ~hall have the fc~ ~r,.~ing meanings: a. Th, ~ord "Bonds" s~all mean the $300,000 pa~ value of Electric G~2t sad Po~er Revenue Bond~, 1¢67, of the City ~su,~ provided ~n this eruPt, ante. b. The ~ord "SyCtem" ~hat! ~ean ~he cxi~tlng electric ~nd poaer ~y~te~. of th~ City a~ the same will be added to, tmpr~.v-.d an(t ~,xt.,nded out or the pro:eeds of the ~ale oF the i~onds a~d ,~:; th,, sa~,,~. ,.,qy be later udd,~d to , tmprow~d a~d ext,:ndc,~ ~or u:; lo~,' ..:' any of th,~ Outstan~In,: Fartty i~ond:;, th.' ~;ond:,, a.d a.y FuL,~?' Ho~,Je, ;irc o~t;,'.,:ffl.~J C. T.,' ;;ord:; "'J,Jt:;ta~d.l.Z Parity [~o:'~'];;' ;;hall m,':~: t,,. · City outotandinl~ at thee time to which the money in ~.2e~ L{~ht snd Power [~¢;venue Fund have been pledged for the payment o£ the ..,.~,,~ thereof and interest th-r,lon. d. 'l'r~e v;'. .: !.ev~.f:~c: }.'t~:.,l" :.kq]l m,:;,:; thc City (~e::l~;hated 'd, ~ .'~ j~,.,j i !,' :'I,:' ; ,: :,i:'.:.t ;,:,,I i' ,.,Jr' l,::v~-"r,,~ F~:.';' gro:,:, ¢;:rr,:nF.;, ::'.: : '/":.','., o? the :'y::t,.:. ;:.u:'t :, e, T:;, z' "' "i';:r,~ty boh'~ !~.cl~_.r !,t~or. ! ,r..:" by :;~ t'o~. 8 oF Or.l' '.r.... I;o. 5J* For the puvt,o::e c;f' pa~[rl;~ ar,': the pay',cf,t of' if,,: ;;.i~,ctpal of and ~nterest on tlc Outstandl~.;t fo q'L,. ',, :..;:, "Fut'.'rc }'arlLy Bond~" ~t,al; <ea~ any :'er;: ..... ~hc; pr;bell,al of' ,:,.~ il,tur~.:;L on whlcn ~hall be j~,yable out of' t.:.c r.o~ey out of' ::,~ch F~nd ?,r ~h,: payment of the pr. lnc~prtl off and intec'c:;t on the · g. Thc. ~,ord; "bo~d Redo~fipt~on Fund"' ahal l mca:: thc ~/~19bY ~~'~~~ Revcuue Bond Redumi:t{on Fungi" c:'e~,.,:d In '~ i SecL ;-,r, L hereo" ' .... t,i;c purpo:;c of i~ayinl~ and secuz'ln;~ the ~.' ...... tr;e {.r'".t,cli',al of' :,~,..J lritcrest on the h. ~hc. ~;t. rd;' "lieserve Account" ~hall meat, %he ~pec;~l account crc;~t,:¢: :n f-jcctl(,r, ; hereof i.n the Bond Redemptlo~: Fund for t:.,. Of ~.' "':~'lrh; tile p',':;';c~;t of the principal of and interest or~ t~,, Rl,'r'tr':c 1,1;j~;t ¢,r,'; ~,;;,,:' Construction Fund croat,. I :r, Fc-ct~,':. '.' " ' : : , . f ar,,~ at the t'.".' '.: t:~c lz:;ua:,c~.' ,u.3 u~:3i-~ev~' ,,;' the Bon'J:: tr,,.},- J~ ~ot, nor' ,,'J. ~r.,/v,: bo, ;my ~,.f'j,.~cncy J~. S'hi~'d, ~. '. at tlc ttme r,[' th,: delive;'y of' the t;of,d:, t~,, C'ty ~i,] have or, [".1,. a c(,rtJ "' cat,' from an ind,:p(.ndent lic~,~,z~,~ Fro- f~..~;j~,rm! (.:.,:!~.' '.:' ~,r' cn,;Jneer'Ir,g firm, zho;.~Jn~ that ir, ~,i:; or its oplhio~, tn(. ;a,:,:.a: income of the System, a~ aaded to, lm;,:.ow..l extervled, af%r r' c. zl. er.;e5 of maintenance an~J o[.eratJon th~r~..,,f, but [(.?,,e any t;.~c;; o~, paymef~tz '. lieu of taxes to be paid t.y tlc City, will c.;,;;~J at least 1.~ times the avez.a~c a2nua! rc,.lulred th,:~',.,',ft'~r' to [,ay the principal of and lnterezt o~ the Outstandlnr; Parity [~ond~ and the Eonds. The con(;ltior.~; contained In Section 12 of Ordinance having beef, com;~l',"l with or a~ured, the payments requir'ed ordinance to b(' made out of the Revenue Fund into the Bond Re-v. mition Fund and Ho~er'vc f, ccou~,t hereinafter created to pay and secuvu the pay- ment cfi the principal of' and interest on the Bonds shall const'tute a lien an~ charge u; on the money In such Revenue Fund equal In rank with the llen and char;;,' ther'eon for the payments required to be made into the l'a~.ity Lond re,unlit!on Fund to pay and secure the payment of the princll.:d of and l~.tere;;t on the Outstanding Parity Bonds. The Cl~y hereby f~rther covenants and ~,:~rees that t,, :,c.~,.~.: will not be lssur,~i a~.~J (:elivered to the purcha!:,,v:, thereof ~.' a [,-~',,.) wltn t~,,: ']t.:tar,cJ~L~ I've,try Bo~:d:; until cc;,tif'Icate fro.. :,~ ~r~,v.~.n,ter;t licensed ~,~,ofc:;t:!oh:,l C':;,llh( ...... efl;'~r;i',zf'Jfli; f'l:'~, h'~, ~','~' ~. filed wit[, the City. [;ect~ .. '<, [':,:- the p~z,[o~,e of p~'ovidl;.< t~.,~ ;~.,', /LL, L[,.,~.:,', · ,.f.,~ y.- , ;,,. :.:;..,..: : ,. ,.. :..:~f",.d v,t,':',, '.f' th~' C~ty a:. :: ~;;,,-.Jr,! ., ' II. i ~leId theref- on February 28, 1967, the City shal] issue the Bonds in a single issue. The Bonds :;hall De dated October l, 1967, shall be in denomination of $1,")00 e,~ch, shall be tn the aggreEatc principal amount of $300,0C9, shall bear interest at the rase of 5.9% per annum, payable semlannua]ly on the first d~ys of April and October of each ~ear from date of issue as evidenced by coupons to be attached there%o, shall be numbered consecutively from 1 up, and shall ~$ure on October ], 199~. Both pr~ncipal of and inbe~est on the Bonds shall be payable in lawful money of the United States of Americ~ at the main O~ the Seattle Truss and Savings Bank, Seattle, Washington, or, She option of She holder, at the Kenal Branch, National Bank o[' Alaska, Eenat, Alaska, and shall be obligations only of the Bond Redemption Fund. Sectton_~. The City hereby covenants and agrees that it will call for paymen% at par and retirement or purchase as hereinafter provided, the following amounts of the Bonds on October 1 of the following years from mandatory payments made to the Bond Redemption Fund 1977 $11,000 1986 $18,0o0 1978 11 ,o0o 1987 19 ,oo0 1979 12,000 1988 20 ,C00 1980 13,000 1989 21,000 1981 14,000 1990 23,000 1982 14,000 1991 24,000 1983 15,000 1992 25,000 1984 16,000 1993 27,000 1985 17,000 The ~onds to be so called and retired each yea~ shall deterr-~fned by lot by the payin~ a~£~nt for the Bond. s, which Is .~u..reby de:;tcr, atf. d az th'? ::?attle Trust and Savlnss Bank. The City further reserves the right to use any furuis In the }{.-.w.~ue Fund or tn the Bond Red~,~ptlon Fund av.,il;:b]'~ for :;~,.'.~, ~.urp.;se to purcha:~c any of th,} bonds in t~.' (,; '"~ ma~'ket for retireg, ent only, if the uame may be purchased at a price no~ exceeding that at which they could be called For redemption on the first succeedin~; d'~te at which th,:y ,~ay be called as.provided In * the following ~ection, plus accrued tr, terest. If any of %u~zh t{ond5 nrc purchased or c~ll-d and retired tn any one year ~n :,r~ a~ounZ ~reat. er than the amounL ~,equtred to be called and retired on October 1 of said year, then the amoun~ of much Bonds that muut be called and retired on October i of the 8ucceedtn!~ calendar year o~ years ~nay be ueduced by the a~ount of such additional ~ond9 so previously called and retired. Notgce of any ~uch call~ for rede~nptlon shall be given by one puOltcatton thereof in a financial Journal or newspaper of genpral cgrculatfon in ~he City of Seattle, ~ashington, not ,,ore than forty nor less than thirty days prior to zald redemption date, and by mailing a like notlcc a~ the ~ame time to ~arshall and Peyer, Incorporated, at its main place of business in SeattZe, Vlashincton, o~ to its busineus successor, tf any, at its main place of ~ecttO{~..~.. The City hereby reserves the right to redeem the Bonds outstanding, In ~hole, at the fQllowgng t!nms ~d at the following prtce~ expressed a~ a percentage of the principal amount, p~us accrued interest to da~e of redemption: On October 2, 1977 and Apri2 ~,, ~978, at 105 On October 1, ~978 and April ~978, at On October 2, 1979 and April l, ~980, at On October 1, 1980 and April ~, 2~- at 102 On October 1, 1981 and AO~I2 ~, l~; a~ On October ~, 1982 and any interest payment date thereafter at Notice of any ~uch ~ntended redemption ~hali be g. 1¥":t by one publication thereof in a financial ~ournul or ncv{s~p?r general ctrculat!o~ lr~ the gtty of Seattle, ~'a~htn~to~, not Forty nor le~u ~h~r, thgrty days prior to ~aid rede~ptio~ dat..', by ~,alltnij a likv {~ottce at th~' sar:~e tithe to ~,~ar':~All and Incorporated, o~..,ttl,', >h~shim~to~, at lt~ {~aln pj~ce of bu:; , to {t~ bu:;t~"':;'.; :;,;c~.,.:;:;o~, If any, ~t its ~nA.in pl:~c.' of bu:,i~':::;. Section following form.: The Bonds ~hall be in substantially the UNITED STATES OF AMR~iCA No. $1,000 STATE OF ALASKA CITY OF KENAI ELECTRIC LIGHT AND POWER REVENUE BOND, 1967 The Ct:y of Kenai, a municipal corporation of the State of Alaska, hereby acknowledges itself to owe and for value received promises to pay to bearer on the first day of October, 1993, the principal sum of ONE THOUSAND DOLLARS together with interest thereon at the rate of 5.95 per annum payable semiannually on the first days of April and October of each year from date of issue as evidenced by and upon presentation and surrender of the attached interest coupons as they severally become duc, or until the payment of such principal sum shall have been nmde or duly providec for. Both principal of and interest on this bond are payable in lawful money of the United States of America at the main office of Seattle Trust and Savings Bank, Seattle, Washington, or at the option of the h61der, at the Kenai Branch, National Bank of Alaska, Kenai, Alaska, solely Rut of the special fund of the city known as t.,e Eenai~1967 El ........ o ........... / Revenue Bond Redemption Funo" created by Ordinance No. /~_J~ of the city. The City of Kenal has covenanted and agreed that it wl]l call for payment at par and retirement'the following amounts of the bonds of this issue on October ] of the follow~n3 yearz: 5 1977 $11,0o0 1986 15,000 lgTB ll,OOO 1987 19,~0o 1979 12,000 1988 20,000 1980 13,000 1989 21,000 1981 1~t,000 1990 23,000 1982 14,000 1991 24,000 1983 15,000 1992 25,000 1984 16,000 1993 27,000 1985 17,000 The bonds to be so called and retired each Meat shall be determined by lot by the paying agent, which has been designated as Seattle Trust and Savings Bank. The City of Kenai has reserved the right to redeem the bonds of this issue outstanding, in whole, at the following times and at the following prices expressed as a percentage of the principal amount, plus accrued interest to date of redemption: On October 1, 1977 and April 1, 1978, at 105 On October 1, 1978 and April 1, 1978, at 104 On October 1, 1979 and April 1, 1980, at 103 On October 1, 1980 and April 1, 1981, at 102 On October 1, 1981 and April 1, 1982, at 101 On October 1, 1982 and any Xnteremt payment date thereafter at 100. Notice of such call or any such intended redemption shall be given by one publication thereof in a financial Journal or newspaper of general circulation in the City of Seattle, Washington, not more than'forty nor less than ~hirt2 dams prior to said redemption date, and by mailing a like notice at the same time to Marshall and.Meyer, Inc. at its main place o£ buetness, or to the successor of said company, if any, ~t its main place of business. This bond Is one of an issue of 300 bonds o£ the city of like amount, date and tenor, except as to number, ag6r~Katlnl: the principal sum of $300,000, whlch bonds are issued pursu~mt to the laws of the State of Alaska, the Charter of th~ City of Kenai, a vote of the duly qualified voters of the city, and duly adopt~.d ordinances and resolutions of the Councll thereof, for the purpose of providing funds to pay pa,t of the cost of acquiring, constructing and installing certain additions uno improvements to and extensions of the llzht and power system of the city and are payable solely out of the Eross revenues of said system and all additions and improvements thereto and extensions thereof. The City of Kenai hereby covenants and agrees with the owner and holder of this bond that it will keep and perform all the covenants of this bond and of Ordinance be by it kept and performed. The City of Kenai does hereby pledge and bind itself to set aside from the KenaI 1963 Electric Light and Power Revenue Fund of the city, created by Ordinance No. 54 of the City, and to pay /nto said Bond Redemption Fund and the Reserve Account therein, the various amounts required by said Ordinance No. f~to be paid into and maintained in said Fund and Account, all within the times provided by said ordinance. The city has further pledged and bound itself to pay into such Revenue Fund as collected, all of the gross earnings and revenue derived by the city from the operation of its light and power system. Said amounts so pledged to be paid out of said Revenue Fund into said Bond Redemption Fund and Reserve Account are hereby declared to be a prior lien and charge upon the money in said Revenue Fund, superior to all other charges of ~ny kind or nature, except the necessary cost of maintenance and operation of said system and equal in rank to the char~es on the money in oald Fund for the payment of the principal of and interest on all of the presently outstanding electric ll~ht and power revenue bonds of the city issued under dates of October 1, 1963, and September 1, 1964, and to any charges that may be made on said Fund for the payment of the principal of a~d interest on any revenue bonds which the city may later issue on a parity with such outstanding electric light and power revenu, bond~ and the bonds of this issue. The City of Kenai has further bound itself to maintain laid system in ~ood condition and repair, to operate ~e same in an efficient manne~ and at a reasonavle co~t, and to establi~h, ~ain~ain and collec~ rate~ and char~es for light and po~er tha~ ~ill p~ovide revenue available for revenue bond debt service in an amount equal to at least 1.~ ~imes the average agnual amount required to pay the principal of and interest on all ~he ou~standin~ bonds of the city which are payable f~om such ~evenue after necessary co,ts of maintenance and operation of sa~d syste~ have been paid, but before depreciation and before any taxes or payments in lieu of taxes have been paid to the city. It is hereby certified and declared that this bond and the bonds of this issue are issued pursuant to and in strict compliance ~lth the constitution and la~s of t~e Sta~e of ~laska, and the Charter, a~d ordinances and ~esolutions of the Council of the City of ~enai, and that all acts, conditions and things requl~¢d to be done precedent to and in the issuance of this bond have happenedd, been 'done and performed. IN WITNESS ~;~EREOF, the City of ~enai, Alaska, has' caused ~his bond to be siEned by its ~ayor, ~o be attested by its Clerk, the official seal of the city to be impressed hereon, and the interest coupons attached hereto to be ~lgned with the l'acs~mllo ~Ignatures of ~aid officials this first day of October, 1~67. CITY OF KEi{AI, ALASKA ~y ~ayor 10. .t Attest: City Clerk The interest coupons to be attached to th,- Bonds shall be in sttbstantially the f'ollo~ing form: NO. $~9.50 On the first day of , 19 , the City of ~enai, Alaska, ~tll pay to beare~ at the main office of the Seattle Trast and Savlng~ Bank, Seattle, Washinston, or, at the option of the holder, at the Kenai Branch, National Bank of Alaska, ~enai, Alaska, the sum zhown hereon in la~ful money of the United S~ates of America, out of ~he special fund of the city known as "Kenal~1967 ~t:~ ~.; ~.n~ ;~:: Bevenue Bond Redemption Fund," sa2d ~um due tha~ d2y on it~ ~lectcic L26ht and Power Revenue Bond dated Octo~e~ 1, 1967, and numbered · CITY OF ~ENAI, ALASEA By Attest: 'City Clerk' 11. Mayor Section 6. T~e Bond~ uha~ be signed on behalf of the City by its Mayor, shall bc attested by itc Clerk, and shall have coupons attached thereto shall be ~;lgned ~t~h ~he fac~imile sig~ature~ of sai~ cfflcial~, 3ection ~. T~ere i~ herc~y ¢~ated a special fund of the City to bc 2no~n ~ the "~enai 1~67 Electric Light and ?o~er Construction Fund" (hereinbefore defined as the "Construction Fund." all of the proceeds of sale of the Bonds (except for accrued interest, ~hieh ~hall be paid into the Uond ~edemption F~d) shall be paid into said Constructlon Fund and shall be used f~r t~e sole purpose of payinE the coat of acquirin&, constructins and in~talltn~ the additions and l~provemento to and extensions of the System autt~ortzed herein and all cost~ incidental thereto. Any money= remaintn; in the Construction Fund after such purposes have been accomplished shall be paid into the Bond Redemption Section 8. There is hereby .c~ted a special fund of the City to be known a~ the "Kenai,~1967 ~--'-~..~--'-~:.'-~-~-~':~a~'~ P~"-~-~ Revenue Bo~d Rede~ptlon Fund" (herein beffo~e defined as the "Bond Redemption Fund"), ~htch Fund ia to be drawn upon for the sole purpose of t pa¥in~ the principal of and ~nterest o~ the Bonds aa the same I shall become due and payable, The City nere~y obligateo and bind~ itself to set aside and pay into the Bond hedemption Fund ou~ of the money in the Revenue Fund, certain fixed amounts necessary to pay tho interest on the Bonds as th'.' same respectively becomes due and payable, and to call and retire., tho Bonds as provided in Section The City shall [)ay into the [~ond Redemption Fund on or before the ~ day of each month, beginning with the month 12. off October, 1967, and continuing as long as any of the BondSo are outsta~ding-and ur~paid, an amount equal to at ].east one-~txth of the t~terest to become due and payable on the next interest payment date on all of the Bonds then outstanding. The City further covenants that.~..~.~it shall pay into the~ Bond Redemption Fund on or before the.~ee~day of each month, ~egtnnlng with the month of october, 1976, an amount equal to least one-twelfth of the principal amount necessary to retire such portion of tl,e Bonds as are required to be retired according to the schedule set forth in Section "of this ogdinance, on the next succeeding October 1 of the years 1977 through 1993. Said amounts so pledged to be paid out o~ the Revenue Fund into the Bond Redemption Fund and the amounts hereinafter required to be paid into the Reserve Account therein are hereby declared to be a prior lien and charge upon the money in' said Revenue Fund superior to all other charges of any kind or nature (including any payments in lieu of taxes into the general fund of the City) except the charges required to pay the normal cost of maintenance and operation of the System and equal In rank ta the charges necessary to pay the p~lncipal of and interest on the Outstanding Parity Bonds and to any charges which may later be made thereon to pay the principal of and interest on any Future Parity Bonds. In the event that money and/or direct oblilations of the United States of America maturing at such time or tlmts and bearing interest to be earned thereon in amounts sufficient to redeem and retire the Bonds in accordance w~th their te~ms, are set aside in the ~ond Redemption Fund to effect such redemption or l, etirement and such money and/or the principal of and interest on such o~ligations are irrevocably set aside and pledged for such purpose, then no furrY, er payments need be made into the Bond Redemption Fund for the payment of the principal of and interest on the Bonds, and the Bonds and the appurtenant coupons shall cease to be entitle~ to an~ lien, benefit or security of this ordinance except the risht to receive the funds so set aside and pledged, and the Bonds and/or such coupons shall bo deemed not to ~e 0utstandin~ hereunder. ~eCtton 9. A Re~erve Account is hereby created in the Bend Redemption Fund, and the City hereby covenants and agrees t~a~ it ~i!~ ~et aside ~d pay into said Reserve Account out of the mone~ in t~e Bevenue Fund, and out of any other moneys ~ich it ml~ no~ or later have on hand and legally available for ~uch ~ose~, monthly payments commencing with the month of October, ~9~7, of $~75.00. The ~ity shall continue to make such payments mtil t~ere his Seen pal~ into the Reserve Account a total sum of at least $2C,~20. The ~ity further a~rees that it ~ill at all time~ thereafter ~aintaln such amount in the Re~erve Account until there is a sufficient amount in the Bond Redemption F~d and Reserve Account to pay the principal of~ premium If any, ~d interest on all of the Beads outstandln~, at ~hlch time the money tn the Reserve Account may be used to pay such principal, premium if any, and interest. i~ tr{e even~ ~he out ..... , money In such ~...~;erv,. Accoun~ may be used to retire Bonds, or ~.ay be ~ran~fe~'~ed to any r~serve accoun~ v~hlch may be crea~ed ~o secure the payra~,x~L of the bonds isaued ~o refund ~he Dond3 out a ~ andin~5. 14. In the event the moneys in the Bond Redemption Fund, over and above the amount therein set aside and credited to the Reserve Account, are insufficient to meet maturing installments of either interest on or principal of and interest on the Bonds outstanding, such deficiency shall be ~mde up from the Reserve Account by the withdrawal of ca=h therefrom. Any deficiency created in the Reserve Accost by reason of any such withdrawal shall then be made up from the money in the Revenue Fund first available after making necessary provision for the required payments into the Bond i~e~emption Fund. All money in the Reserve Account may be kept in cash or invested in direct obligations of the United States of America having a guaranteed redemption price prior to maturity, maturing not later then ten years from the date of purcha=e, and in no event maturing later than the last maturity of the Bonds outstanding at the time of such purchase. Interest e&..-ned on any such investments and/or any profits realized from the sale thereof shall be deposited in and become a part of the Revenue Ft~do Section 10. The corporate authorities of the City hereby declare, in fixing the amounts to be paid into the Bond Redemption Fund and the Reserve Account therein as aforesaid, that they have exercised due retard t.o the cost of maintenance and operation of the system and the amounts necessary to pay the principal of and interest on the Outstanding Parity Bonds and have not obligated the City to set aside and pay into maid Fund and Account a greater amount of the' revenue of the tyst. om than in their Judgment will be available over and above such cost of maintenance and operation and the charges necessary to pay the principal of and interest on such Outstanding Parity Bonds. 15. Section Il. The City hereby covenants and agrees with the owner and holder of each of the Bon~s for a~ long as any of Zhe same remain outstanding: (a) That it will establish, maintain and collect rates snd charges for electric light and power for as long as any of the Bonds are outstanding that will provide revenue available for revenue bond debt service in an amount equal to at least 1.4 times the average annual -_mount required to pay the principal of and interest on the Outstanding Parity Bonds, to pay interest on the Bonds as the same shall become due, to call and retire the Bonds as provided in Section ~ hereof, after normal costs of maintenance an¢ operation of the System have been paid, ~ut before depreciation and before any taxes or payments in lieu of taxes have been paid tO the City. (b) The provisions, covenants and agreements of the City contained in Sections 7, 8, 9, 11 and 12 of Ordinance No. 54, and Sections 9, 10 and 12 of Ordinance No. 70, constituting covenants and agreements of the City protecting and safeguarding the security and rights of the holders of the Outstanding Parity Bonds, are hereby incorporated in this ordinance a~ if set forth herein arid by such incorporation are made applicable to the Bonds as ~ell as the 0utstandin~ Parity Bonds, and shall inure to the benefit of the o~ners and holders from time to time of the Bonds 'in addition to the covenants contained in this Ordinance. (c) The City hereby reserves ~he right to issue Fut~r~ Parity Bonds under the same terms, conditions and requirements and with the same limitations and restrictions as provided in Sections 12 of Ordinances No. 5~ and 70 respectively for the issuance uf rewnue bonds on a parity with the Outstanding Parity Bonds, ......... terms, conditons and r~quirements are hereby incorporated in this 16. Ordinance as if set forth herein and by such incorporation are made applicab}e to the Bonds as well as to the Outstanding ?a[lty Bonds, The City hereby further covenants and agrees that in th,~ event any Future Parity Bonds are issued, that it will establish a Reserve Account to secure the payment thereof, will require that an amount equal to the average annual debt service on ~uch Future Parity Bonds shall be paid therein within five years from the date of their issuance, and that such amount shall be maintained therein until all of such Future Parity Bonds shall have been retired, and further covenants that the debt service coverage covenants contained in Section il(a) hereof shall be e~tended to include the debt ser¥ice on such Futur~ Parity Bonds. Section 12. The City hereby accepts the offer of Marshall and Meyer, Inc. dated August 8, 1967, as amended by a letter dated August 2~, to purchase the Bonds, upon the terms and at the interest rate herein set forth. · The proper City officials are hereby authorized and directed So do everything necessary for the prompt execution, xssuance and delivery of the Bonds and for the proper use and application of the proceeds of ~uch sale. Section 13. An emergency is hereby declared to exist affecting the public peace, health and safety and the rules governin~ the introduction, reading, passage and approval of this ordinance are hereby suspended and this ordinance shall be effective immediately upon its passage, approval, and publication as required by the City Charter. PASSED ~y the Council of the City of Kenal, Alaska, and approved h,, its ~:ayor this~_~ day of ~ 1967. CITY OF KEHAI, ALASKA / l'l ~ ~' ~a~ ....... Att,:st; l, FRANCIS TORKILSEN, the duly appointed, qual~fied and acZln~ City Clerk of the City of Kenai, Alaska, DO HEREBY CERTIFY tb&t the £ore$oin~ is a true and correct copy of Emer6ency Ordinance {to, /~/of said city, duly passed by its Council and approved by its Mayor on the~_~ day of ~~__~, 1967.