HomeMy WebLinkAboutORDINANCE 0058-1963AU O~DI~V~CE o£ tho City o£
the result o£ a special election
~9~ 1963; providing fo~ thc
~75~000 pr/ne~lmi amotmt o£ ~to~ ~:ovem~e bends
o£ tho elty £or the pt2pooe o~
the £unds necess .a.~y to constr~Ot t~o £trO~ stage
o£ a nnm/ct~al ~ator's~l~ ~ d~tr~t~n
a Co~t~t~n F~d; c~t~
to,est on cold ~nds; pr~ld~ ~d ~O~tng
certa~ cov~to ~ prot~ttvo toat~oo
issue ~25,000 ct v~ater ~enue
~i~h such ~n~ to be ~uedl and
e~rg~cy.
I,IJBREA8, at a opec/al election held in tbs City o£
Alooka, on Octobeg 29, ~963 pugsuant to the City Cha~tor, O~dinanco
I~lo. 52, and other resolutLons and ordinancoa o£ the City Council,
the qualified voters o£ the City authorized the issuance o£ ~ator
~ovonuo bonds o£ tho City in the p~tncipal cum o£ ~100,000 ~o~ the
purlines of ~ovidtn9 pa~t of the £unds necoo~a~ to construct tho
£1rot stage of a ~untoipal ~ator supply and distrt~p~tton system for
tho City; and
~M~RF~8, It lo necessar~ and to the best interest o£ tho
City ~nd _ito _inhabitonto that $75,000 o£ such bonds be no~ issued
and soZd and that the date, form, te~ms, maturities and covenants
theroo£ b~ fixed; and
~HERBA$~ the City Councll has heretofore accepted the offer
o£ ~arshall and t4eyer Tncorpo~ated, an investment bankinq corporation
o£ Seattle, Washington, to purchase tho ~75,000 o£ water revenue
bonds authorized herein, at par plus accrued interest to date of
delivery and under the terms, conditions and covenants o£ such bonds
as set £orth h~retnl
N(~'~, TBEREFORE, BF. IT ORDA~I~D by the Council of the
City of Kenai, Alaska, as follows:
SeCtiBn. 1. That the results of the special eiection held
in th~ City of Kena'~, Alask~, on ~tober ~, 1963, where~ the
requ~site majority of the qualified voters of the City ~do~teg a
proposition prov~d~g for the ~ssu~ce of $100,000 principal amount
of ~ter revenue ~nds of the City, fo= the ~r~se of providing
part of t~ f~ n~cessa~ to const~ct t~ f~rst stye of a mun~-
cipal water supply and distri~t~on syst~ for the
same are ~ a11 respects ratified an~ conf~ed.
Section..~. As use~ ~n th~s ord~c~ th~ follow~g words
shall ~ve the follow~g me~gs=
a. The word "C~ty" s~ll ~ t~ City of Kenai, a ~n~-
cipal co=potation ~uly org~zed and ex,stag a~
vi=t~e of the laws of the State of Alas~.
b. ~ ~or~ "Syst~" shall me~ the
tr~but~n system of the City as the ssme is to be ac~re~, con-
st~cted ~d ~stalled out of the ~roceeds of sale of the Authorized
Bo~ ~ Un,ted States G~e~nt g=~ts, and as the
~ded to, ~ttered, improved ~d extended for as !ong as ~y of the
Author~ed ~nds are outstand~g.
c. The words "Authorized Bonds" shall me~ the ~100,000
of ~ter revenue bonds authorized ~ the ~alified voters of the City
at the spe=~l elect~on descr~ ~n Section ~ hereof.
d. The word "Bond~" shall mean the $75,000 pr~cipal a~ount
of the Authorized Bonds, the issuance ~d sale of ~ich $75,000 of
Bonds ts authorized here~.
e. The words "Unissued Authori~ed Bon~s" shall ~ the
$25,000 of the Authorized Bonds remaining ~ts~ued after the !ssuance
of the ~nds.
SeBtion 3. For the purpose of providing part of the funds
necessary to construct the first stage of a municipal ~rater supply
and distril~utton of the City as mo~e specifically provided in
nance No. 5~ of the city, adopted October 3, 1963, and £or providing
t~oyears' interest on the Bonds w~tch is the period of construction
o£ the syste~ plus six ~onths, the City shall issue the Bonds.
The Bonds shall be dated Decembe~ l, 19~3, shall be in the
denomination of $1,000 each, shall be numbered from 1 to 75 inclusive,
shall bear interest at the rate of6%per annum payable semiannually
on the first days of June and Decemb~ of each year from date si
issue, and shall mature on December 1, 1983. Both principal o£
and interest on the Bonds shall be payable in lav~£ul money of the
United States o~ ~uerica at the o£ftce o£ the City Treasurer in
Kenai, Alaska, ~d shall be obligations o£ the special Bond Redemption
Fund hereinafter created.
Sect_ion 4. The City hereby reserves the right to redeem
any or all o£ the Bonds outstandlaB, in whole, or in part in
cal order, on December l, 1964 oF on any ~ay therea£ter, at par plus
accrued interest, ii any, to date o£ redemption.
Notice o~ any suoh intended redemption shall be given by
one publication thereof in a business and financial Journal of gen-
eral circulation in the C?.¥ si ~eattle, ~ashington, not mo~e than
forty nor less than thirty days prior to said redemption date and by
mailing a like no~lce at the same time to ~shall and ~eye~
corpo~ated at its place o~ business in Seattle, Washington. Interest
on any Bond or Bonds so called for redo~ption shall cease on such
redemption date unlea~ ~he same ars not redeemed upon presentation
~mde pursuant to such call.
Seclion ~. That there be and i$ ~ereby created a special
fund o£ the City to be known as the "Kenai ~ater System Construction
Fund" (hereinafter called the "Construction Fund"). For the purpose
of providing interest on the Bonds during the period of construction
of the System plus six months, $9,000 of the proceeds of sale of the
Bonds shall be deposited to the credit of the Bond Redemption Fund
hereinafter created. The balance of the proceeds of sale of the
Bonds and o~ the Unissued Authorized Bonds if the same are ever
sold (except for accrued interest, which shall be paid into said
Bond Redemption Fund) shall be paid into the Construction Fund.
The moneys to be received from the United States Government
to pay part of the cost of acquiring, constructing and installing the
System shall also be paid into the Construction Fund upon receipt
thereof.
The money in such Construction Fund shall be used for the
sole purpose of acquiring, constructing and installing the System as
hereinbefore authorized and as more specifically provided in Ordinance
No. 52, and for paying all of the expenses incidental thereto. Any
moneys remaining in the Construction Fund after the acquisition,
construction and installation of the System may be used to repurchase
any of the Authorized Bonds outstanding, or shall be transferred to
the Bond Redemption Fund hereinafter created, f~r t~e uses and pur-
poses herein provided.
Section 6. That there be and is hereby created another
special fund of the City to be known as the "Kenai 1963 Water Revenuo
Bond Redemption Fund" (herein called the "Bond Redemption Fund"),
which Fund shall be drawn u~on for the sole purpose of paying the
principal of, pr~mlum if any, and interest on the Authorized Bonds
outstandfn~ as the same shall become due. All of the Authorized
Bonds when issued shall rank parl passu and shall have an equal claim
and lien on the gross e~nings and revenue of the System for the
payment of the principal thereof and interest thereon.
The City hereby obligates and binds itself to set aside
and pay into such Bond Redemption Fund, out of the following sources,
at the following times, the following fixed amounts necessary to pay
the principal of and interest on the Bonds as the same respectively
become due and payable:
a. Out of the proceeds of sale of the Bonds, and imme-
diately after the receipt thereof, the sum of $9,000.
b. Out of the gross earnings and revenue of the System,
and on or before the twentieth day of each month commencing with the
month of December, 1965, and continuing for as long as any of the
Bonds are outstanding and unpaid, an amount equal to at least one-
sixth of the interest to become due and payable on the next interest
payment date on all of the Bonds then outstanding.
c. Out of the gross earnings and revenue of the System,
and on or before the twentieth day of each month beginning with the
month of December, 1982, and continuing for as long as any of the
Bonds are outstanding and unpaid, an amount equal to at least one-
twelfth of the principal of the Bonds to become due and payable on
December 1, 1983.
Such amounts so pledged to be paid out of the gross earn-
ings and revenue of the System into the Bond Redemption Fund are
hereby declared to be a prior lien and charqe upon such gross earn-
ings and revenue superior to all other charges o£ ~,~y ~ind or nature
except the normal cost of maintenance and operation of the System,
and equal in rank to any charges which may later be made on such
gross earnings and revenue to pay the principal of and interest on
the Unissued Authorized Bonds in the event part or all of the same
are issued.
Geo,Syn.7. The corporate authorities of the City hereby
declare, in fixing the amounts to be paid into the Bond Redemption
Fund as hereinbefore provided, that they have exercised due repard
to the normal cost of maintenance and operation of the System and have
not obligated the City to set aside and pay into the Bond Redemption
Fund a greater amount of the revenue of said System than in their
judgment will be available over and above such cost of maintenance
and operation.
Section 8. The City hereby covenants with the owner and
holder of each of the Bonds for as long ae ~ny of the same remain
outstanding as follows:
a. That it will establish, malnta/n and collect rates and
charges for water for as long as any of the Authorized Bonds are out-
standing that will make available for the pa~ent of the principal
thereof and interest thereon amounts at least equal to the amounts
required in this ordinance and any ordinance or ordinances authoriz-
ing the issuance of the Unissued Authorized Bonds to pay the pr~n-
cipal of and interest on all of such bonds as the same shall become
due, after normal costs of maintenance and operation of the System
have been paid.
b. That it will at all times kGep and maintain the System
in good condition and repair and will at all times operate the same
~n an efficient manner and at a reasonable cost.
c. That it will not sell or dispose o~ any of the prope~ties
of the System (unless the same are no longer used~ useful or necessary
in the operation thereof) unless ~=ovision is made for payment into
the Bond Redemption Fund of a sum sufficient to redeem and retire all
of the Bonds outstanding in accordance with the terms thereof.
S~uti0n 4. The Bonds shall be in substantially the follow-
ing form=
1
UNITED STATES OF $~4ERIC~
NO. $1,O00
STATE OF ALASKA
CITY OF KENAI
;~TER REVENUE BO~D, 1963
THE CITY 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
December, 1983, the principal sum of
OdE THOUSAND DOLLARS
together with interest thereon at the rate of 6% per annum
payable semiarulually on the first days of June and December
of each year from date hereof, as evidenced by and upon pre-
sentation and surrender of the attached interest coupons as
they severally become due, or until the payment of such prin-
oipal sum shall have been made or duly provided for.
Both principal of and interest on this bond are payable
in lawful money of the United States of America at the office
of the City Treasurer in Kenai, Alaska~ ~olely out of the spe-
aial fund of the e{*y ~nown as "Kenai 1963 Water Revenue Bond
R~emption Fund" created by Ordinanc~ ~u. . o£ th~ uit~.
The City of Kenai has reserved the right to redeem any
or all of the outstanding bonds of this issue, i~ whole~ or
in part in numerical order, on December 1, 1964 or on any day
thereafter~ at par plus accrued interest~ if any, to date of
redemption.
Notice of any such intended redemption shall be given
b~ one publication thereof in a business and financial Journal
of general circulation in the City of Seattle, Washington, not
®
more than forty no~ less than thirty days prior to
redemption date and b~ mailing a like notice at the same
time to Marshall and Meyer Incorporated at its place of
business in Seattle, Washington.
This bond is one of an issue of seventy-five bonds
of the city of like amount, date and tenor except as to
number, aggregating the total principal sum of $75,000,
which bo~ds are issued pursuant to the laws of the State
of Alaska, an election of the qualified voters of the City
of Kenai, and ordinances of the city duly and regularly
adopted, for the purpose of providing part of the £unds
necessary to acquire~ construct and install the first stage
of a municipal water supply and distribution system of the
city (hereinafter called the "System"). Ail of the bonds
of this issue are payable solely out of the gross earnings
and revenue of the System and all additions and improvements
thereto and exten~ions thereof.
The City of Kenai h~e~y 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 No.
to be by it kept and performed.
The City of Kenai does hereby pledge and bind itself
to set aside from the proceeds of sale of the bonds of this
issue and from the gross earnings and revenue of the System,
and to pay into and maintain in said Bond Redemption Fund
ureated by sa~d Ordinance No. ~-~, the various amounts re-
quired by said ordinance to be paid into and maintained in
said Fund, all within the times provided by said ordinance.
The amounts so pledged to be paid out of such gross
earnings and rovonue into said Bond Rede~nption Fund are
hereby declared to be a prior lien and charge upon such
gross earnings and revenue 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 later upon such gross earnings and revenue
to pay the principal of and interest on the additional
$25,000 principal amount of water revenue bonds which the
city may issue later on a parity with the bonds of this
The city has further bound itself to maintain the System
in good condition and repair, to operate the same in an effi-
cient manner and at a reasonable cost, and to establish,
maintain and collect rates and charges for water supplied
for as long as any of the bonds of this issue ano any bonds
issued on a parity thez~with are outstanding that will make
available £or :he payment of the principal of and interest
on ail of such bonds as the same shall become due, amounts
sufficient to pay such principal and interest as required
in said Ordinance No. ~'~ and any ordinance or ordinances
authorizing the issuance of such parity bonds, after normal
costs o£ maintenance and operation of the System have been
paid.
It is hereby certified and declared that the bonds of
this issue are issued pursuant to and in strict compliance
with the Constitution and laws of the State of Alaska and the
Charter and ordinances 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.
IN WITNRSS ;~EREOF, the City of Kenai, Alaska, has
caused this bond to be signed by its Mayor, to be attested
by its Clerk, the corporate seal of the city to be fmpressed
hereon, and the interest coupons attached hereto to be signed
with the facsimile signatures of said officia!=, this first
day of Decembpr, 1953.
ATTEST:
City Clerk
CITY OF KENAI, ALASKA
By
Mayor
The interest coupons attached to the Bonds shall be in
substantialiy the following form:
NO.. ~30.00
On the first day of .... , 19__, the City
of Kenai, Alaska, will pay to bearer at the office of the
City Treasurer in ~enai the sum of THIRTY AND NO/100
DOLLARS in lawful money of the United States of America
out of the special fund of the city known as "Kenai 1963
Water Revenue Bond Redemption Fund," said sum being the
semiannual interest due that day on its Water Revenue Bond
dated December 1. 1963, and numbered .
CITY OF KENAI, ALASKA
By
~TEST:
City Clerk
Mayor
10.
Section 19 The Bond~ shall be signed on behalf of the
City by its Mayor, shall be attested by its Clerk, and shall have
the corporate seal of the City impressed thereon. The interest
coupons attached thereto shall be signed with the facsimile signa-
tures of said officials.
Section iI. The sale of the Bonds to ~.larshall mhd
Incorporated, an investment banking corporation of Seattle,
Washington, at par plus accrued interest to date of delivery
and under the terms and conditions of the Bond~ as set forth
herein, is hereby in all respects ratified and confirmed.
The proper City officials are hereby authorized and
directed to do everything necessary for the prompt issuance, execu-
tion and delivery of the Bonds to such purchaser, and for the
proper use and application of the funds derived from such sale.
Section 12. Because the immediate effectiveness of this
ordinan~e is necessary to obtain United States Government matching
funds, an emergency is hereby found to exist. This ordinance is
declared to be one necessary for the immediate preservation of the
public health and safety. The rules governing the introduction,
reading, pa~=ag~ and approval of this ordinance are hereby suspended,
and this ordinance shall be effective immediately upon its passage,
approval and publication as provided by law.
Publication of this ordinance shall be made by posting a
copy hereof on the official City bulletin board immediately after
its passage and approval.
PASSED by the Council of the City of Kenai, Alaska, ~nd
approved by its Mayor this
City Clerk
day of December, 1963.
il.
~{~yor
I, FRANCES TORKII~E~, the duly appointed, qualif~ed and
acting Clerk of the C~ty of l(enal, Alamka, DO HEREBY CERTIFY that
the foregoing ~s a true and correct copy of Ordinance ~o. ~
of said c~ty, duly passed by ~ts Council sm] approved by ~to ~ayor
on the ~ day of December, 1_963.
City Clerk