HomeMy WebLinkAboutORDINANCE 0059-1963AN ORDII~ANCS o£ the City of Konai, Alaska, confirming
the ~eoult of a special elation ~ld on Octobe~
29; 19631 pr~tdin~ tot the issua~e and sale o~
~75~.000 principal amount of ae~e~ revenue bon~
o~ the ci2y ~or the ~rpose et p~ovidi~ pa~t
the ~unds ~cessa~ to c~ot~uct the
o~ a ~nicipal e~age coLlecti~ and dispooa1
system o~ the city; ~ix~ t~ date,
~tu~/t/e~ and cove~nts o~ s~h Bon~; c~eating
a C~uetion F~d; creatin~ a B~d Redem~i~
Fund ~o~ t~ payment o~ the p~i~ipal of
to,est ~ said ~ndol p~idtn~ and ~optin9
certain ~ve~nta a~ p~tive ~eatu~es sa~e-
9ua~di~ the pa~ent et such p~incipal and
/nte~st; and decla~ an e~o~.
I~IEIIFJ~, at a special election held in the City of Kenai,
ltLaska, on Octet; 29, 1963 ~t;uant to tho City Chatte~, O;dina~ce
~O. 52~ and othe~ ~esolutio~ a~ otdL~nces o~ the CLt~ Co~cil,
t~ q~lified voters o; t~ City auth~ized the i6suance o~ se~e=
rev~ue ~ds o~ t~ city in the principal s~ og ~75,000 ~or the
purpose o~ p~id~ pa~t o~ t~ ~d~ necessary ko construct the
~gat mC~e o~ a ~ntotpal ~e~e collection a~ dis~sal syn. ,~ ~o~
t~ City; and
~~ it io neceosa~ and to ~he ~ot interest of the
t~t t~ date, to~m~ te~ms~ matu~ities and cove~nts the~eo~ be
~ixed~ and
~S~ the Ci~ Council hao he~etogo~e accepted the ot~e~
o~ ~a~s~il and
og ~oa~tle~ ~aohing~on~ to pu~chaoe such bonds~ a~ pa~ plu~ accrued
interest to ~te o~ delive~ a~ unde~ the ~ condit~ns and
coven~ts o~ such ~ndo ao sot to, th ho~oinI
S0~ ~HS~PO~ BS I~ O~AINSD ~ th~ Council of the City
o~ Kenai~ Alaska~ ao
Section 1. ?hat the ro_sults o£ the ~pecial elect~on held
in the City o£ Eenai, Alaska, on Octobez ~9, L96~, ~e~e~ ~he
· e~ui~te majority o~ ~he qua~ed vo~e~ o~ ~ C~y ado~ed a
p~oposL~on p~ovid~nq ~oz ~be i~ouanoe o~ ~75~000 p~c~pal amoun~
o~ ~ewe~ ~evenue hondo o~ ~he C~y, ~or ~he p~po~e o~
pa~t o~ the ~und~ nece~sa~ to construct the ~t ~t~e o~ a mun~-
cipal ~e~e collecti~ and disposal syst~ ~oz the City, be and
th~ same a~e tn all Eesp~ts ratZ~ted and con~Zzmed.
Section 2. As u~ed ~n this ordL~nce the ~oXl~:~g
a. The ~ord "City" s~ll ~an the Cit~ si ~nai, a muni-
cipal co,potation dul~ organized and oxiotin~ no a city und~ an~
virtus o~ the la~s of the State o~ Alas~.
b. The ~o~d "S~otom" shall mean the sewage coll~tion and
disposal system o~ the City as ~he same is ~o b~ acqui~ed, oonst~cte~
and installed out st the proceed~ of sale o~ the ~nds ~ ~nited
States ~ove~mont grants, and as the same ~y be added ~o,
improved and extended fo~ as ion9 as an~ of th~ Bonds a~e ~totandtng.
c. Tho ~o~d "Bonds" s~ll ~an the $75,000 p~lncipal
amount o~ ee~e~ x-~nuo bo~s the io~ua~e and sale of ~ich
autho~/ze~ ho~oin.
neceso~ Co construct the ~Z~st ~t~e o~ a municipal 9ewa~ collec-
tion and dt$~sa~ ~ystem o~ the City as mo~e spect~icaZl7 pr~ided ~n
O~dXnance No. 52 o~ khe ClOy, adopted Octobe~ 3; 19~3, and 2o~ p~o-
vtdZng t~o yea~s* Znte~e9~ ~ the Bonds ~ich is the period
construction o~ the System plus six ~nt~, the City 9haZl
the Bond~.
The Bondo shall be Sated Dece~er l; 1963, shall be ~n the
denomination o~ ~L,000 each, ~hall be nu~ered ~rcm 1 to 75 inclusive,
sh~ll bear interest at the rate of /r/~ per annum payable semiannually
on the £irst days of June and December o£ each year from date of
issue, and shall mature on D~¢e..~.~; !~ 1~3. Both principal of and
~t~rest on t~ Bo~s s~lL ~ payabl~ ~n lawful ~nsy of the United
Sta~ea of A~r~ca at the off,ce of the C~ty Treasurer ~ ~enai,
Alas~, and s~11 be obligations of the special ~ond Red~t~on Fund
here~te= crated.
S~t~o~ 4. ~e C~ty here~ reserves the right to redeem
any or all of the 9onds outstanding, ~ ~hole, or ~n pa~t ~n nume=i-
esl ordor~ o~ Dece~r 1; 1964 or on any day thereafter, at par Flu~
acc~ed inte=est~ if any~ to date of
Notre of ~y such intended redempti~ z~11 be given
o~e publ~ation t~zeof tn a b~lnes0 and financial Journal of gen-
eral ci=eulation in the City of Beattle, Washington, not more t~n
~ili~ a li~ ~tice at the s~me time to t~rsha11 ~nd ~yer
cozporated at its place of ~siness in Seattle, Washington. ~nterest
on any Bond o= 9onds so c~lled for redemption ~11 cease on ~uch
rede~on date unless t~ sa~ are not rede~ed upon
~de ~z~uant to such call.
S~ction 5. ~at there be and ~s here~ created a special
fund of the City to be 2no~ as th~ "Kenai Se~er Syst~ C~struction
F~d" (hezoin~ftor called the "Construction Fund"). For the puzpose
of pz~ding interest on t~ Bond~ during the period of construction
of the System ~lue six months, ~9,000 of the p=oueeds of ~ale of the
Bonds shall ~ deposited to the credit of the Bond Redemption Fund
~rein~tcr created. The balance of the proceeds of sale of the
Bonds (except for ~cczued interest, ~ich shall be paid into
9ond Redemption Fund) shall be paid into the Con~truction Fund.
The money~ to be received from the United States 6overnment
to pay 9~rt 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 ohall 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
aaquisition, const~uction and installation of the System may be
used to repurchase any of the Bonds outstanding, or shall be trane-
ferred to the Bond Redemption Fund hereinafter created, for the
uses and purposes herein provided.
Section 6. That there b e and is hereby created another
special fund of the city to be known as the "Kenai 1963 Sewer Revenue
Fund" (he=e~n called the "Bond Redemption Fund"), which Fund shall be
dra~n upon for the sole purpose of paying the principal of and in-
retest on the ~onds outstanding as the same shall become due.
The City hereby obliga~es and binds itself to set aside
and pay into such ~ond Redemption Fund, out of the following sources,
at the following times, tbs £ollowing 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 ir~e-
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 ea.:h 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 d~te on all o£ =he Bonds then outstand/~g.
c. Out of t~ gross ca:hinge and revenue of the System,
and on or before the twentieth day of each month beginning with the
month o£ 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 charge upon such gross ca:h-
inge and revenue superior to ~11 other charges of any kind o: nature
except the normal cost of maintenance and operation of t.he System.
Section 7. The corporate authorities of the C~ty hereby
declarej ~n fixing the amounts to bepaid into the Bond Redemption
Fund as hereinbefore provided, that they have exercised due regard
to the norma~ cost of maintenance and operation of the System and
have not obligated the City to set aside and pay into the Bond Re-
demption Fund a greater amount of the revenue of said System than
in their Judgment will be available over and above such cost of
ma~tenance and operation.
~eetion 8. The City hereby covenants with the ovnler arid
holder of each of the Bonds for as long as any o~ the same remain
outstanding as follows:
a. That ~t will establish~ maintain and collect rates and
charges for ~anitary sewage colloction and disposal service for as
long as any of the Bonds arc outstanding that will make available
for the payment of the principal thereof and interest thereon a~munts
at least equal to the amounts required In this ordinance to pay the
principal of and interest on the Bonds as the same ~ha11 become due,
after no:ma1 costs of maintenance and operation of the System have
been paid.
b. That it wili mt all times kee~ and maintain the System
~n good condition and repair and will at ali times operate the same
in an efficient manner and at a res~onable cost.
c. That it will not sell or dispose of any of the proper-
ties of the System (unless the same are no longer used, useful or
necessary in the operation thereof) unles~ provision is made for pay-
ment into the Bond Redemption Fund of a ~um sufficient to redeem and
retire all of the Bonds outstanding in accordance with the terms
ther=of.
~.eCt~09 9. The Bonds shall be in substantially the follow-
J,ng fo~m:
UNITED STATES OF AMERICA
NO. $1,000
STATE OF ALASKA
CITY OF ~NAI
SW~ER RL~ENUE BOI~D, 1963
TH~ CITY OF I~NAI, 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 pr~ncipal sum of
O~E THOUSAND DOLLARS
together with interest thereon at the rate of ~ per annum
payable semiannually on the first days of June and December
of each year from date hereof, as evidenced by and upon pre-
sentation and surrender o~ the attached interest coupons as
they severally become due, or until the payment of such
principal 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, solely out of the
special fund of the city known as "Kenai 1963 Sewer Revenue
Bond Redemption Fund" created by Ordinance No. -~'~ of the
city.
The City of genai has reserved the right to redeem any
or all of the outstanding bonds of this issue, in 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
red.rapt ~on.
Notice of any such intended redemption shall be given
by one publication thereof in a business and f~nancial Journal
of general circulation i~ the City of Soattle~ Wash~ngton~ not
more than forty nor less th~ thirty days ~rior to said
de, ion date and ~ ~lling a like not~ce at the same time to
~rs~11 and Meyer Incor~rated at its pl~e of bus,ness
Seattle~ Wa~Bington.
This ~nd is one o~ a~ issue of seventy-five ~nds of the
o~ty of like a~t, date and tenor except as to number~ aggre-
gating the total ~=inc~pal sum of $75~000, which bonds are
issued pursuant to tn. laws of the State of Alaska, an election
of ~he qualified voters of the City of Kenai, and ordi~ances of
the c~ty duly and regularly adopted, for the purpose of provid-
~ng part o~ the funds neces=a~ to acquire~ construct and
install the first stage of a s~age collection and disposal
system of the city (hereinafter called the "System"). All of
the bonds of this issue are payable solely out of the gross
earnings and re~enue of the System and all additions and
provements thereto and extensions thereof.
The City of Kena~ hereby covenants and agrees with the
o~er and holder of this bond that it will keep and perform
all the covenants of this bond and of oL'dinance NO. ~
to be by it kept and performed.
The City of Kenai does hereby pledge and b fad 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
oreated by said Ord/nance No. ,~-~c/ . the various amounts
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 revenue into said Bond Redemption Fund aye
hereby declared to be a prior lien and charge upon such
gross earnings and revenue superior to all other charges
of any kind o~ nature except the non, al cost of maintenance
and operation of the System.
The city has further' bound itself to ma~tain the System
~n good condition and repair, to operate the same ~ ~n effi-
cient ~er and at a reasonable cost, and to estsbl~sh,
~ta~ and collect rates ~d c~rges for sanitary sewage
collection and disposal ~ice furni~hed for as long as any
of the bonds of this issue are outst~nding that w~11 ~ake
available for the pa~ent o[ the pr~ncipal thereof and ~nterest
there~ as the same shall beco~ due, ~mo~ts suff~cient to pay
such principal and interest as requi=ed in sa~d Ordi~ance
~ after no~al costs of maintenance and o~ration of the
System have be~n paid.
It is hereby certif~ed and declared that the bonds of
this issue are issued ~rsuant to and In strict compliance
w~th the Constitutio~ a,~ laws o[ the State of Alaska and the
Charter and ordinances of the City of Kenai, and that all acts,
condit~ons and th~ngs required to be done p~ecedent to and
the issuance of this bond have happened, been done and per-
formed.
IN WITNESS ~IEREOF~ the City of Kenai, Alaska, has
caused th~-s ~nd to be ~l~ned ~y ~ts Mayo~, to be attested
~ ~t~ Clerk, the co~pozate seal off the c~ty to be ~mp~es~ed
he,eon, and the ~nte~est coupons attached hereto to be ~gned
w~th the facsim~le signatu~es of said off~c~als~ this f~st
day of December, 1963.
ATTF~ST:
CITY OF ~ENAI, ALASK~
Mayor
City Clerk
The interest coupons attached to the Bonds shall be in
substantially the following form:
NO. $ 30. O0
On the . day of , 19__, the City
of Kenai, Alaska, will pay to bearer at thc office of the
City Treasurer in Kenai the sum of THIRT~ AND NO/lO0
DOLLARS in lawful money of the United States of America
OUt of the special fund of the city known as "Kenai 1963
S~wer Revenue Bond Redemption Fund," said sum b~Ing the
semiannual interest due that day on its Sewer Revenue Bond
dated December 1, 1963, and numbered .
CITY OF K~NAI, ALASKA
Mayor
ATTEST:
C~ty Clerk
Sect ~on lO.
The Bonds shall be signed on behalf of the
ATTEST:
City by ~ts 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 11. The sale of the Bonds to Marshall and Meyer
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 Bonds as s~" forth herein,
is hereby in all respects ratified and confirr, ed.
The prorer City officials are hereby authorized and di-
rected to do everything necessary for the prompt issuance~ execution
and delivery of the Bonds to such purchaser, and for the proper use
and application of The funds derived from such sale.
Section_~2. Because the immediate effectiveness of this
ordinance 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 og the
public health and safety. The rules governing the introduction,
reading, passage and approval of this ordinance are hereby suspended,
and this ordinance shall be effective immediately upon its passage,
a~roval 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, and
approved by its Mayor thisW___day of December, 1963.
10.
I, FRANCES TO~.KILSEN, the duly appointed, quslified and
acting Clerk of the City of Kenai. Alaska, DO HEREBY CERTIFY 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
on the ~ day of December, 1963.
City Clerk