HomeMy WebLinkAboutORDINANCE 0054-1963oro~t~m~c~ ~.:o..)~//
AN ORDINANCE of the City of Kenai, Alaska,
confirming the result of a special election
held therein on F,~bruary 5, 1963j providing
for the issuance and sale of $425,000 of
electric light and power revenue bonds of
the city for the purpose of providing funds
extending and repairing the electric power,
lighting plant and distribution facilities
of Kenai Power corporation, all as more
cifically provided in Resolution No. 56 of the
city passed December 26, 1962j fixing the date,
form, terms, maturities and covenants of such
~onds; creating an Acquisition and Construction
Fund; creating a Bond Redemption Fund for the
payment of the principal of and interest on said
~onds, and a Reserve Account therein; providing
and adopting c~rtain covenants and protective
features s~zwg~rd..ng the payment of such prin-
cipal and interest; reserving the right in the
city to issue revenue bonds on a parity with
such bonds to be issued upon compliance with
certain conditions; and declaring an emergency.
WHEREAS, at a special election held in the City of Kenai,
Alaska (hereinafter called the "City") on February 5, 1963 pursuant
to the City Char~er, to Resolution ~o. 56 and other ru:olutions and
ordinances ef the Council of th6 City. the .oualt[t~a
authorized the issuance of revenue bonds of the City in a sum of not
to exceed $450,000 (hereinafter called the '~uthorized Bonds") for
the purpose of providing funds to pay the cost of acquiring, improv-
ing, extending and repairing the electric power, lighting plant and
distribution facilities of the Kenai Power Corporation (hereinafter
oalled the "System", which word shall inciudo all addltlon~,
provements and extensions made to the System £o~ a~ long as nny of
the Bonds are outstanding), all as more specifically provided in
said Resolution No. 56; and
WHERF~%S, it is necessary and to the best interests of the
City and its inhabitants that $425,000 of said Authorized Bonds
(h~reinaftcr called the "Bonds") he now issued and sold for such
purposes, and that the date, form, terms, maturity and covenants
thereof be fixed;
NOW, THEREFORE, BE IT ORDAI~.~D by the City Council of tho
City of Kenai, Alaska~ as follows:
Section I. That the results of the special election'
held in the City on Februa~, 5, 1963, ~hereby the requisite
majority of the qualified electors of the City adopted a proposition
providing for the issuance of net to exceed $450,000 of revenue
bonds of the City for the purpose of providing funds to pay the
cost of acquiring, improving, extending and repairing the System,
be and the same are in all respects ratified and confirmed.
~e~tioq 2. That to provide funds to pay the cost of
acquiring, improving, extending and repairing the System as provided
in Resolution No. 56 of the City and as authorized by the qualified
electors of the City at the special election held therein on
February 5, 1963, the City shall issue and sell the Bonds.
The Bonds shall be dated October i, 1963, shall be in the
denom/nation of $1,000 each, shall bear interest at the rate of 5%
per annum payable semiannually on the first days of April and
October of each year from date of issue as evidenced bycoupons
attached thereto, and shall all mature on October 1, 1993.
Both principal of and interest on the Bonds shall be payable
in lawful money of the United States cf America at the main office
of Seattle Trust and Savings Bank in Seattle, Wa&hington, or,at
the option of the holder, at the Kenai Branch, Alaska State Dank
in Kenai, Alaska.
The authorized Bonds shall be obligations only of the
special 1963 ~lectric Light and Power Bond Redemption Fund created
by this ordinance.
The City hereby covenants and agrees that it will call for
payment and retirement the following amounts of the Bonds on
October 1 of the following years from mandatory payments made to thc
Sinking Fund Account in the Bond Redemption Fund, and at the
following prices:
Year Amount l' ri co Yea r Amount p ri ce
1969 $ 9,000 102-1/2 % ~98~ $17,000 I00 '~
1970 9,000 102-1/2 % 19g3 18,000 100 ~
1971 10,000 102-1/? % 1984 19,000 1.O0 %
1972 10~000 102-1/2 ~ 1985 20;~0 100 %
1973 11,000 102-1/2 % 1986 21,000 100 %
1974 11,000 102 % 1987 22,000 100 %
1975 12,000 101-1/2 % 1980 23,000 100 %
1976 12,000 101% 1989 24,000 lO0 ~
1977 13,000 i00~1/2 % 1990 2~.~nn ~nn o,
1979 15,000 100 % 1992 27,000 100 ~
1980 15,000 100 ~ 1993 26,000 100 %
1981 16,000 100 %
The Bonds to be so called and retired each year shall be
determin~d by ~t by the paying'agent for't~e B0nd~.' ....
,purchased_or
If any of such Bonds are/called and retireo in any one year
in an amount greater than the amount required to be calied and retired
on October 1 of said year, then the amount of such Bonds that must be
called and retired on October i of the succeeding calendar year or
years maybe reduced by the amount of such additional Bonds so pre-
viou~ly called and retired.
Secttpn~. The City of Kenai hereby reserves the right to
redeem the Bonds in whole on the following interest payment a~e~.. ~t
the following times and at th. ~11.,..4.g --: ..... , ........
=enrage of the principal amount plus accrued interest to the date of
redemption:
On October 1, 1973 and April 1, 1974, at 105
On October 1, 1974 and April i, 1975, at 104
On October 1, 1975 and Anrli 1, 1976, at 103
On October 1, 1976 and A~ril 1, 1977, at 102
On October 1, 1977 and April 1, 1978, at 101
On October 1, 1978 and any interest
payment date thereafter, at 100,
Notice of any redemption or retirement o£ a~y Of the Bonds '
shalI be given by one publication thereof in a bu~ne~ an~ f~nane~al
Journal or a newspaper of general circulation in the City of Seattle,
Washington, not more than forty nor less than thirty days prior to such
redemption or retirement date and by mailing a like notice at the same
time to Marshall and Meyer Incorporated at its main place of business
or to the business successor of said company, if any, at its main place
e
of buginess. Interest on any B~',nd or Bond:~ :;o called for redemption
shall cease on such redem;)tion date %~nle:;:; the same are not
redeem-:.] upon )'~',;0r~cntation made p%:rsu~,~t to such call.
The City further reserves the right to use any surplus funds
in the sinking Fund Account in the Bond Redemption Fund or the
Reserve Account a~ any %ime to purchase any of the Bonds in the
omen market for retirement only, if the same may be purchased at
a price not exceeding ~hat at which they could ~e called for
redemption on the first succeeding dat~ at which they may ~e
called, plus accrued interest.
~.ectlop 4.
following form:
The Bonds shall be in substantially the
UNITED STATES OF AF£RICA
~0 ...... $1,000
STATE OF ALASKA
CITY OF KENAI
ELECTRIC LIGHT AND POWER REVE~3E BOND, 1963
K~OW ALL MEN BY T~ESE PPJ~SENTS:
That the ~ity of Kenai, a municipal corporation of the
State of Alaska, for value received hereby 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% per annum
payable on the first days of April and October 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 princlpai sum shall have been made
or duly provided for.
Both principa% of and interest on this bond are payab%e
in lawful money of the United States of America a~ the main
office of Seattle Trust and Savings Bank, Seattle, Washington,
or, at the option of the holder, at the Kenai Branch, Alaska
State Bank, iD Kenai, Alaska, solely out of tho special fund
Of tho Ci~y known a~ "Kena~ 1.963 E!ectr~c Light and ..Dower Revenue
Bond Redemption Fund" created by Ordinance No. 54 of tho City.
The City of Kenai has covenanted and agreed that it will
call for paymcn% and retirement the following amounts of .the
bonds of this issue on October 1 of the following years and at
the following prices:
Year Amount Price Year Amount Price
1969 $ 9,000 102-1/2 ~ 1982 $17,000 100 ~
1970 9,000 102-1/2 ~ 1983 18,000 100 %
1971 10,000 102-1/2 ~ 1984 19,000 100 %
1972 10,000 102-1/2 % 1985 20,000 100 ~
1973 11,000 102-1/2 % 1986 21,000 100 %
1974 11,000 102 % 1987 22,000 100 %
1975 12,000 101-1/2 % 1988 23,000 100 ~
1976 12,000 101% 1989 24,000 100 %
1977 13,000 100-1/2 % 1990 25,000 100 ~
1978 14,000 100 % 1991 26,000 100 ~
!979 15,000 100 % 1992 27,000 100 ~
19S0 15,000 100 % 1993 26,000 100 ~
1981 16,000 100 %
The bonds to be so called and retired each year shall be
determined by lot by the paying agent for the bonds.
The City of Kenai has reserved the right to redeem the
bonds of this issue in whole on any interest payment date on
and after October 1, 1973, at the followinq times and a~ the
following prices expressed as a percentage of the principal
amount, plus accrued interest to the date of redemption:
at 105
at 104
at 103
at 102
at 101
at 100.
On October 1, 1973 and April 1, 1974,
On October 1, 1974 and April i, ]975,
On October 1, 1975 and April 1, 1976,
On October 1, 1976 and April 1~ 1977.
On October 1, 1977 and April 1, 1978,
On October 1, 1978 and any interest
payment date thereafter,
Notice of any redemption or retirement of any of the bends
of this issue shall be given by one publication thereof in a
............. financial jou~ul or a newspaper of general
circulation in the City of Seattle, Washington, not more than
forty nor less than thirty days prior to such redemption or
retirement date and by ma!].lng a like notice at the same time
to Marshal'. and Meyer Incorporated ;.t ~t$ main place of
business or to the business successor of caid company, if
any, at its main place of business.
This bond is one of an issue of four hundred twenty-five
bo~ds of like amount, date and tenor except as to number
-~. _ , aggregating the principal sum
of $425,000, and is issued pursuant to the laws of the State
of Alaska, the Charter of the City of Kenai, a vote of the
duly qualifie~ electors of the city and duly adopted ordi-
nances a~d resolutions thereof, for the purpose of providing
funds to pay the cost of acquiring, improving, extending and
repairing the electric power, lighting plant and distribution
facilities of the Kena£ Power Corporation, all as more spe~
oifically provided in Resolution No. 56 of the city passed
December 26, 1962. All of the bonds of this issue are pay-
able solely out of the gross revenue of the electric light
and power system of the city and all additions and improve-
ments 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 p~rform
all of the covenants of this bond and of ordinance No. ~/
to be by it kept and performed.
The City of Kenai does hereby pledge and bind itself to
set aside from the money in its Electric Light and Power
Revenue Pund created by Ordinance No. of the city, and
to pay into and maintain in said 1963 Bond Redemption Fund
and the Reserve Account created therein by said Ordinance
No. ~, the various amounts required by said ordinance to
be paid into and maintained in said Fund and Account, all
within the times pzovided by said ordinance. The city has
furchu~ pl~..']:jed and bc-und itsel£ to pay into said Electric
Light and Power Rcv,~n~e Fund as collected all of the gross
eazn]ngs and reven~e derived by thc city from the operation
~ ~e~ o~m~ l~.~ht and Dower system and all additions and
~mprovementD thereto and extensions thereof.
Said amounts so pledged are hereby declared to be a
pr~or lien and charge upon the money in said Electric Light
and Power Revenue Fund superior to all other charges of any
Rind or nature except the necessary costs of maintenance and
operation of such ~ystem, and equa~ in rank to any charges
that may ~e made upon the money in said Fund to pay and se-
cure the payment of the principal of and interest on any
electric l~ght and power revenue ~onds of the city which may
later be i~sued on a p~rity with the bonds of this issue.
The city has further bound itself to maintain _-aid system
in good condit~on and repair, to operate the same in an effi-
maintain and collect rates and charges for light and p~er
~or as long as any of the bonds of this issue 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 amount required to pay the principal of and interest on
such bonds as the same shall become due as provided in Sections
2 and 8 of said Ordinance No. _~Z/, after normal costs of
main~enanc~ and operation of said system have been paid, but
have been paid to th~ city.
It is hereby certified and declared that this bond and the
bonds of this issue are issued puruuant to and in strict com-
pliance with the Constitution and laws of the State of Alaska
and the Charter a~d ordinancc~ of the City of Kenai, and
that all acts, conditions and things required to be done
precedent to and in the issuance of this bond have happened,
been done and performed~
caused this bond to be signed by its Mayor, to be attested
by its Clerk, the aorporato seal of the city to be impressed
hereon, and the interest coupons attached hereto to be
signed with the facsimile signatures of said officials,
this first day of October, 1963.
CITY OF KENAI, ALASKA
By
ATTEST:
Mayor
City Clerk
The interest coupons attachc~ to the Bonds shall be in
substantially the following form:
NO. -- $ ....
On the first day of . . , 19.__, the City
o£ Kenai, Alaska, will pay to bearer at the main office of
the amount shown hereon in lawful money of the United States
of America out of the special fund of the city known as
"Kenai 1963 Electric Light and Power Revenue Bond Redemption
~"~ ~ ..¢m~ann~al ~ntcrcst ~"~ ~ ~ day
Fund," said ~um .~..~ ~ ~ .' "
on its Electric Light and Power Revenue Bond dated October 1,
1963 and numbered
£~TTEST .'
City Clerk
CITY OF KENAI, ALASKA
By
Mayor
~;?k.P- The Bonds shalt bc signed on behalf of the
City by its Mayor, shall be attested by the City Clerk, and shall
have the corporate seal of the City impressed thereon. The inter-
est coupons attached to the Bonds shall be signed with the facsimile
signatures of said officials.
Section 6. That there be and is hereby Created a special
fund of the City to be known as the "Kenai Acquisition and Construc-
tion Fund." The proceeds o~ sale of the Bonds (except for accrued'
interest, which shall be paid into the Bond Redemption Fund) shall
be paid into such Construction Fund and shall be used for the sole
purpose of acquiring, improving, extending and repairing the System
as hereinbefore authorized and paying all the expenses incidental
thereto.
Any moneys remaining in such Construction Fund shall be
transferred to the Sinking Fund Account in the Bond Redemption Fund
for Cne uses and purposes herein provided.
Section 7. That there be and is hereby created ano.ther
special fund of the City to be known as "Kenai 1963 Electric Light
and Power Revenue Fund" (hereinafter called the "Revenue Fund"), into
which Fun4 shall be deposited as collected all of the gross earnings
and revenue of the System. All costs of maintaining and operating
the System, any payments which might be made to the City for taxes
or in lieu of taxes, all payments required by this ordinance to be
made into the Bond Redemption Fund and Reserve Account therein here-
inafter created, ali payments which may be required to be made in
payment of the principal of and interest on any bonds of the City
which may later be issued and which will be a charge upon such earn-
ings and revenue, all costs of additions, betterments, improvements
and repairs to and replacements and extensions of the System (except
when the same are financ~3 by the. issuance of bonds), and all o~hor
legal and proper expenses of the System and charges a~ainst the
revenue thereof, shall be paid out of said Fund.
Secti0D 8. That there be and is hereby created another
special fund of the City to be known as "Kenai 1963 Electric Light
and Power Revenue Bond Redemption Fund" (herein called the "Bond
Redemption Fund"), which Fund shall be drawn upon for the sole
purpose of paying the principal of, premium if any, and interest
on the Authorized Bonds as the same shall become due.
There are hereby created in the Bond Redemption Fund two
accounts ~o be known as the "Interest Account" and the "Sinking Bund
Account."
The City hereby obligates and binds itself to set aside
and pay into the Bond Redemption Fund out of the money in the Reve-
nue Fund the following fixed amounts necessary to pay the principal
....................... . th~ Bu~d~ as the same shall
~e~ome due. Said payments shali be made into the Bond Redemption
~und on or before the tenth day of each month in the amounts herein-
after specified:
A. The City shall pay into the Interest Account, upon
receipt, the accrued interest received at the time of the delivery
of the Bonds.
B. Beginning with the month of October, 1963 and continu-
ing for ~ long as any of the Bonds are outstanding and unpaid, the
City shall pay into the Bond Redemption Fund to the credit of the
Interest Account, an amount equal to at least one-sixth of the in-
terest to become due and payable at tho end of the next ensuing
six-months period on all the Bonds then outstanding, except that
the amounts so required to be paid into the Interest A~count before
April 1, 1964 shall b~ reduced by the amount of accrued interest
10.
receiw':d by the City at the time of the delivery of the Bond::.
C. Beginning with Lb.2 month o£ uctc~bor, "1968, the City
shall pay into hhu i~ond Redemption I.'~nd to the credit of the ~lnF. in9
Fund Account, an amount equal to one-twelfth of the principal amount
and premium, if any, of the Bonds that the City has covenanted in
ing October 1 of the years 1969 through 1993.
When there is sufficient money in the Bond Redemption Fund
and the Reserve Account hereinafter created therein to pay the
principal of, premium if any, and interest to the date the Bonds
may first be redeemed, then no further payments need be made into
the Band Redemption Fund.
The amounts so pledged to be paid out of the Revenue Fund
into the Bond Redemption Fund and said Reserve Account are hereby
declared to be a prior lien and charge upon the money in the Revenue
F~nd superior to all other charges of any kind or nature except the
normal cost of maintenance and operation of the System, and equal
in rank to any charges that may be made upon the money in the
Revenue Fund to pay and secure the payment oz ~ne prinulpal of and
interest on any electric light ~nd power revenue bonds of the City
which may later be issued on a parity with the Bonds.
Reserve Account is hereby created in the
Bond Redemption Fund and the City hereby agrees that it will
aside and pay into said Reserve Account, out of the money in the
Revenue Fund and out of any other moneys which it may now or later
have on hand and available for such purpose, the sum of $30,000 by
October 1, 1968. The City further a~rees that it will meet such
Ob~t. gnt~O~ by ~epo~!t!ng in the Reserve A~co~t ~o~tb]y payment~
of at least $500 commencing with the month of October, 1963. The
City further agrees that when the sum of $30,000 has been ~aid into
the Reserve Account it will at all times maintain that amount
therein until there is a sufficient amount in the Bond Redemption
Fund and the Reserve Account to redeem and retire all of the Bonds
11
outstanding w.~th accrued interest and prr~mlum, if any, to the date
of redemption.
The Reserve Account shall be held in the custody of the City
Treasurer separate and apart from all other funds and accounts, and
shall be maintained for as long as any of the Bonds are outstanding,
in a bank, having a combined capital and surplus of moro than
$500,000.
In the event there shall be a deficiency in payments required
to be made into the Interest Account or the Sinking Fund Account
in the Bond Redemption Fund, such deficiency shall be made up
from the Reserve Account by the withdrawal of cash therefrom.
Any deficiency created in the Reserve Account by reason of any such
withdrawal shall then be made up from the moneys in the Revenue Fund
first available after making necessary provision for the required
payments into the Interest Account and Sinking Fund Account.
All moneys in the R~s~r¥o Account may be kept in cash or
invested An direct obligations of tho United States of America
having a ~uaranteed redemption ~rice or maturing not later than ten
years from dat~ of purchase and £n no event maturing later than the
last maturity of the Bonds outstanding at the t~me of such purchase.
Interest earned on any such investments shall be deposited in and
become a part of the Revenue Fund.
Seet$on AO. The corporate authorities of =h~ City hereby
declare that in fixing the amounts to be paid into the Bond Redemption
Fund and the Reserve Account they have exercised due regard for the
cost of maintenance.and operation of the System and hav~ not
~und and Reserve Account a greater amount or proportion of the
revenue of said System than in their judgment will be available
over and above such cost of maintenance and operation.
~ec~iQn~lt Th~ City of Kenai hereby covenants with the
owner and holder of each of the Bonds as follows:
!
A. Tkut ii any taxes or payh,-nt:~ tn lieu of taxes ~rr
required to be made to the City out of the gross revenue of the
System, the same shall not exceed in any one calendar year 1% of
the gross ~evenues received by the City from the sale of electric
B. That it will establish, maintatn and collect rates
and charges for electric light and power for as long as any of the
Bonds are outst~nding that will provide revenue available for
revenue bond debt servic~ in an amount equal to at least 1.4 times
the average annual amount required to pay the principal of and in-
terest on the Bonds as the same shall become due, as provided in
Sections 2 and 8 hereof, after normal costs of maintenance and opera-
ties of the System have been paid, but before depreciation and any
taxes or payments in lieu of taxes have been paid to the City.
C. That it will at all times maintain and keep the System
in good repair, working order and condition and will at all times
operate the System and the business in connection therewith in an
efficient manner and at a reasonable cos=.
D. That it will not sell or otherwise dispose of all of
the properties of the System unless provision is made for payment
into the Bond Redemption Fund of a sum sufficient to pay the prin-
cipal and interest of all of the outstanding Bonds in accordance
with the terms thereof, nor will it sell or otherwise dispose of
any part of the properties of the System except those that are no
longer used, useful or material to the operation thereof, nor will
it sell or otherwise dispose of any part of the properties of the
System that are used, useful or material to ~uch operation unlesu
provision is made for the payment into the Bond Redemption Fund of
an amount which will be in at least the same proportion to the
amount of outstanding Bonds that the revenue available for debt
13.
service of sai, f Bonds for the twelve [~,¢,~ti,s l~receding such s~le ~.£
disposal from the portion of the Ly:~tem sold or disposed of bears
to the revenue available for debt service for said Bonds from the
entire System for the same period. Any such money so paid into the
the earliest possible date.
E. That it will provide for an examination of the prop-
erties of the System by an independent engineer or engineers (here-
inafter ca~led the "Consulting Engineer") who shall report thereon
at such times as shall be prescribed by the Council of the City;
provided, that the first such examination and report shall be made
prior to November l, 1965, and that subsequent reports shall be
made prior to the first day of November in the year 1968 and at
least once in each three-year period thereafter. Such reports
shall be ~nsufficient detail to show whether the City in operating
the System is satisfactorily conforming and complying with the
covonant~ ~et forth in this ordinance with respect to efficient
man~gemeDt Of the System sad its business, the sufficiency of the
rates charged for light and power under the requirements of this
ordi~ance, the proper maintenance of the properties, tho making of
necessary r~pair~, renewals and replacements thereto, the adequacy
of power supply, and the necessity for capital replacements, ad-
ditions, improvements and extensions, and recommendations therefor.
If the City shall have in any material way failed to conform or
comply with thc covenant~ and agreements contained in this ordinance,
For a five-year period following the date of this ordi-
nance the City has retained the firm of R. W. Beck. and Associates
as Consulting Enginuer.
14.
P. Yhat prior to the £ir~t day 9£ its £isc~l year the
City w3.11 annually adept a budget for the en~uing year.
On or before sixty days from the first day of such fiscal
year the City annually will prepare or cause to be prepared, and will
ceipts and Expenditures and a Budget of Capital Expenditures for the
System for the ensuing fiscal year, which Budget shall be in the
form prescribed from time to time by the Consulting Engineer.
The City covenants that prior to adopting the Budget it
will receive and consider the advice and recommendations of the
Consulting Engineer with respect thereto.
The City covenants that with respect to any contemplated
extraordinary expenditure for which provision has not been made in
the current budget, it will prepare or cause to be prepared a
report in writing stating the estimated amount of such contemplated
extraordinary expenditure and the reason or reasons therefor. Such
report shall be submitted to the Consulting Engineer, and the City
covenants %ha: 1: wlli not mak~ such expenditure without securing
the approval thereto of the Consulting Engineer.
G. That the City will receive and consider the advice and
recommendations of the Consulting Engineer prior to making any major
revision in rates and charges of its System.
H. Each month the City will file or cause to be filed with
the Consulting Engineer a statement showing any revisions in rate
schedules of the System effected during the preceding calendar
month, together with a financial and operating report certified as
being correct by the City official in charge of financial matters
and signed by the Manager of the System. Such financial and
operating report shall include:
15.
it
(].) Separate income and ewp~.nse statements of the
System ioz' the 1,£cceding mo:,th and th= 12-months period'
ended wi. th such month, and compar%n~.r~ therewith for
like preceding periods.
(2) A balance sheet as of the end of the preceding
month.
?. ~h~ the C~tv will keep or cause to be kept, insofar
as permitted by !~'.,, proper books of account in accordance with
accepted accounting practice. The accounts of the City with respect
tO the properties and business of the System, when audited as herein
provided, shall be accepted by the Consulting Engineer in connection
with any certificate, report or recommendation required to be made
by said Engineer to the extent that such audited accounts are avail-
able for the purpose of such certificate, report or recommendation.
J. That it will within a period of four months following
the close of each fiscal year cause an audit of the books and ac-
counts of the System to be made by an independent certified public
accountant or firm of certified public accountants, which audit
shall show the i,teome and expenditure of the System, ~he balance
manner in which the City has carried out the requirements of this
or4inance, the nature and amount of insurance policies in force on
the System, and the number of power and light customers with the
classification of each.
K. That it will keep or cause to be kept the works, plants
and facilities comprising the properties of the System insured, and
will carry such other insurance, with responsible insurers, with
policies payable to the City, against fire and other risks, acci-
dents or casualties at least to the extent and of the kinds that
such insurance is usually carried by corporations operating like
properties in the same area.
L. That it will not furnish or supply electric energy or
16.
any other commo{!ity or service through or in connection with
operation of the properties of the System free of charge to any
person, firm or corporation, public or private.
Section 12. That it will not create any special fund or'
runes rot ~ne paym~n~ oz any o~ner light an~ power revenue bonds
which will rank on a parity with or have any priority over the pay-
ments out of the Revenue Fund into the Bond Redemption Fund and the
Reserve Account therein created in this ordinance) except that it
hereby reserves the right for the purpose of refunding any out-
standing bonds which are a lien upon the gross revenue of the System
and/or the moneys in the Revenue Fund or, ~£nen authorized by the
qualified voters of the City, for the purpose of acquiring, con-
structing and installing additions and improvements to and ex=ensions
of and making necessary replacements or other capital improvements to
the System, to issue refunding or additional electric light and power
revenue bonds and to create a special fund or funds for the payment
thereof, into which fund or funds payments may be made from the
Revenue Fund sufficient to pay the principal of and interest on
such refunding o~ additional bonds and to maintain an adequate re-
serve therefor, which payments may rank equally with the payments
out of the Revenue Fund into the Bond Redemption Fund and Reserve
Account created herein, upon compliance with the following conditions:
(a) That at the time of the delivery of such refunding
or additional revenue bonds there is no deficiency in the
Bond Redemption Fund and the Reserve Account created therein,
or in any bond redemption fund and reserve account which may
have been created for the payment of the principal of and
interest on any parity revenue bonds issued subsequent to
the issuance of the Bonds and prior to the issuance of such
refunding or additional revenue bonds.
(b) That at the time of the delivery of such refunding
or additional parity revenue bonds the City shall have on
file a certificate from an independent licensed professional
engineer or engineering firm showing that in bls or its
opinion he or it is reasonably certain that tho annual
income of the System as added to, improved or extended,
1'7 ·
after exp,?~ses of maintenance a.~d ~.p¢~ac~on thereof,
before any ~axes or payments in lieu of taxes to be paid
to the City, will equal at least 104 times the average
annual amount required thereafter to pay the principal
of and ~nterest on the Bonds outsta'ading as required in
Sections 2 and 8 hcr~o£, the principal of and interest
on any outstanding revenue bonds which may later be
of and interest on such refunding or additional parity
revenue bonds being issued.
It is hereby provided, however, that the remaining un-
issued $25,000 principal amount of the Authorized Bonds may be
issued on a parity with the Bonds without having to comply with
the coverage conditions specified in subparagraph (b) of this
section.
NothiRg herein contained shall pre~ent the City from
issuing electric light and power revenue bonds which are a charge
upon the revenue of the System or the money in the Revenue Fund
Junior or inferior to the payments to be made into the Bond Re-
demption Fund and the Reserve Account created therein, or from
issuing such bonds to refund bonds or warrants for the payment of
which moneys a~e not otherwise.available.
Section 13. The proceeds of the sale of the Bonds, ex-
elusive of accrued interest, if any, which shall be paid into the
Bond Redemption Fund, shall be used solely for the purposes provided
in Section 2 of this ordinance.
The City officials are hereby authorized and directed to
do everything necessary for the acquisition, improvement, extension
and repair of the System, for the issuance, execution and delivery
of the Bonds to the purchaser thereof, and for the proper use and
application of the money derived from such sale.
The Bonds shall be sold at either public or private sale
as the Council of the City shall decide.
Section 14. An emergency is hereby declared to exist,
18.
arid th'. Eulc.': ~3,-.vnrning the introdt, ction, reading, passage
approval of this ordinance are hereby suspended and this ordin~nce
shall be effective immediately upon its passage and approval°
PuBlication of this ordinance shall ~e made by posting a
copy hereof on the City Council bulletin board for a period of ten
days following passage.
PASSED by the Council of the City of Kenai~ Alaska, this
CITY OF KENAI,
ATTEST
City Clerk
19.
I. F~nNCES TOR~ILSE~.~, the duly chosen, quali£ic~ and
acting City Clerk of the City o~ Kenai, Alaska, DO HEREBY CERTIFY
tha~ the foregoing is a true and correct copy of Ordinanc~' 2:o. ~
of said city~ duly passed ~y its Council and approved by its Mayor