HomeMy WebLinkAbout1963-10-10 Council Minutes - Special Meetingl
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SPECIAL :•fi:i;T1*VG - ni:'r,1I CITY' C):I�Cl1. - II:Y) A.'!. ;V1YL!' :PYITL 1.1 0CI'')M::1 1903
The meeting was called to order at 11:15 a.r.:. and roll call showed all members
present but '!essrs. Lofstedt and 'lor?an. also ,present were City Atty. and Geo.
Nichols of R.-.. Beck 6 Assoc. and Ir. Don '!ever of iarsnall f, :Meyer.
Mr. Morin moved, "nackstedt seconded, the Council consent to the cmer;ency special
meeting. ,•lotion passed unanimously and all Councilmen signed the written call of
the special meeting.
Mr. ..layer reviewed the Fond ;)rd. and discussed the changes made from tiie first draft.
Ar. ;layer recommended 5 o interest be inserted in the Jrd. but ue estiRates the interest
as possibly .439%. Some discussion was held regarding conflict in t;ie Borough Law
= relating to the responsibility for sc:iool indeoteduess goin,p to tine Borough or reriain-
ing with tag City which indurred the debt. !r. 'lever also suggested the City and CUL
sip an agreement for renegotiation of the existing contract at tie end of the 20 yr.
period. The City will try to execute this agreement.
Mr. :layer stated his company would like an option to uuy additional bonds if Uie City
i desires to purchase CUL at some later date.
Mayor Dye questioned Ar. 'Meyer re the City's invitation to contract with Governor ntal
Securities Corp., at their baacst. ':r. 'layer stated :iis company .will do the same
service for the City witn no fee or contract involved. IIe also said any investment
r uanker will do the sane.
Some discussion :was held on the difference between term uonds and series bonds.
F. Mr. '.layer enumerated the required steps to consunMate tic electric bonding:
1. Ac{ont the Ordinance, 2. Accept the proposal, 3. uonds could be delivered in
1 19 days. Since the City must file for service areas on the date of acquisition of
' KPC, ',fr. `leyer can deliver a temporary bond next twee;;.
Discussion was had on the Water aad Sewer Revenue bonding. :4. :-layer emphasized the
City will be paying slightly more than 254 on the dollar since the Federal Govn't.
will be furnishing 750 of the construction money. ile also emphasized the necessity
of a favorable bond election as Kenai desperately needs water and sewer and witnout
it, future expansion and growth will be negligible.
Mr. Fisher presented the agreement between Mars'.iall and :.k:yer and the City.
Mr. :McCann moved, Morin seconded, the agreement between the City and 'Marshall k Meyer
be accepted. Roll call vote: Affirmative Knackstedt, Morin, McC nn, Sw' es, Dye.
►.� Jam' yr. � •
Mr. Fisher and '.fr. :Meyer, alternately, presentednrd. #54. ' ?•ir: Knacks dt moved,
Sti.ires seconded, Ord. #54, Providing I -or Sale and Issuance of electric Revenue 3onds
in the Anount of $425,000 be adopted. Roll call vote: Affirmative-Knackstedt, iIcCann,
florin, Swires, Dye. Negative - None.
There was some discussion on a :tanager for Kenai City Light.
Mayor Dye presented an acceptance form from il. Galliett for additional ;rant of Sewage
disposal money. Mr. McCann moved, Morin seconded, :we approve Acceptance of Increased
Grant VC-APW Alaska-14 and authorize the i•layor to sign. '•lotion passed unanimously.
Some discussion was had on the liquefaction plant.
Meeting adjourned 1:30 p.m. Respeeffily si mitted, Frances Torkilsen
City Clerk
I AU RSHALL Am MEYER M
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October 9, 1963
Honorable Mayor and City Council
City of Kenai
Kenai, Alaska
Gentlemen:
Re: $425,000 City of Kenai, Alaska, Electric Light and Power Revenue Bonds
For $426,000 par value legally issued City of Kenai, Alaska, Electric Light and
Power Revenue Bands, to be iatmd October 1, 1963, to bear an interest rate of
by and to mature October 1, 1993, we will pay $100.00 for each $100.00 par
j value of bonds plus a total preatun of $100.00 plus accrued interest to date
of delivery to us.
This proposal is submitted subject to the following conditions:
1. Principal and interest is to be payable at the Seattle !rust and Savings
Sank Main Branch, Seattle, Washington, and at a bank in Alaska to be named.
2. The City covenants and agrees that it will retire bonds from mandatory
paymInts to the sinking fund account in the band redemption fund on October 1,
of the following years and at the following prices:
Year Amrouat
Price
Year Aswpat
Price
9,000
1970 9000
102 2X
102 1/2X
g
1983 12,000
100%
1971 10,000
102 1/2%
it" 19,000
100X
1972 10,000
102 1/2X
1955 20,000
loQ%
1973 11,000
102 1/2X
1986 21,000
100%
1974 111,000
102X
1987 22,000
ioQ%
1975 12,000
101 1/2%
1988 23,000
104%
1976 12,000
10x%
1989 24,000
104
1977 13,000
100 1/2X
1990 25,000
100X
1978 14,000
10w
1"1 260000
100%
1979 150000
100x
1992 27,000
100X
1980 Ii,000
1981 16,000
100x
100%
1993 26,000
10Q%
3. The City further reserves the right to use any surplus funds in the sink-
ing fund account in
the bond redemption
fund or reserve account
to purchase any
of the bonds in the
open market,
if same may be purchased at a
price not ex-
ceeding that at which they could
be called for redemption on the first succeed-
ing date at which they
may be called as stipulated in = above.
a
TA
Page 2 October 9, 196'
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"- 4. The City reserves the right to redeem the bonds in whole from any source of
available funds on the following interest payment dates, at the following tines,
and at the following prices expressed as a percentage of the principal amount
plus accrued interest to the date of redemption:
On October 1, 1973 and April 1, 1974, at 106
On October 1, 1974 and April 1, 1975, at 104
On October 1, 1975 and April 1, 1976, at 103
On October 1, 1976 and April 1, 1977, at 102
On October 1, 1977 and April 1, 1978, at 101
On October 1, 1978 and interest payment date thereafter, at 100.
S. the City covenants and agrees to maintain and collect charges sufficient to
of averse annual debt service after payment of
provide 1.4o times coverageg i
operation and maintenance expenses. ,
6. The City agrees eoswencing with the month of October 1968, to deposit a y ',
minimum of $600.00 per month into a reserve account until the sum totals
$30,000, the Hinds to be deposited in aebankahaviing capital and surplus or - -
e rem kept1
e. All
money in the Y
. =500,000 or aiwr Y
invested in direct obligations of the United States having a guaranteed re- J
deoption price and maturing no later than 10 years after date of purchase and i
in no event maturing later than the last maturity of bonds outstanding at the
tise of such purchase.
7. The City covenants and agrees that any payment or payments to the general 4 y
hind in lieu of taxes are subordinate to debt service requirements, reserve
requirements and operations and maintenance expenses. I
S. The City may issue additional parity bonds provided certain terms and con- j
ditions are met, principally as follows:
(a) That there are no deficiencies in any of the bond hinds.
(b) That a reserve account when established shall be maintained at an
saaunt equal to the average annual debt service requirements on such
parity bonds as may be issued.
(c) That prior to the issuance of parity bonds, except refunding bonds of
equal or prior lten, the City shall have on file a certificate from
an independent, licensed, electrical engineer showing that in his
opinion the net revenue of the system including income from the
add-itions and improvemests to be financed from the proceeds of the parity
I' issue, after payment of operation and maintenance expenses, will equal
at least 1.40 times the average annual interest and principal require -
I
meats on the outstanding bonds and the parity bonds to be issued.
,
9. All legal proceedings leading up to the issuance of the bonds and final
----- approving opinion being furnished by Preston, 7borgrimson, Horowitz, Sterin 6
_ j Ellis, Attorneys at Law, of Seattle, Washington.
Page 3 October 9, 1963
10. The City will agree to negotiate with the Consolidated L'tilitties Limited
to amend the contract between► the City and the Coopany, to provide for the
right of extension from 20 years to 30 years at a rate or rates to be mutually
agreed upon.
11. fie City will agree to negotiate with us for the sale of the bonds to
purchase the Consolidated Utilitiies Limited, When, as and if the City decides
to Pxercise its option to purchase the pr-perties.
As evidence of our good faith, we are attaching hereto our check of $8,500.00
which is to be retained by you ane applied against the purchase price of the
bonds.
Very truly yours,
KIRSHALL and MEYER
n Ld A. Meyer
DAM/ljt
Encl.
This bid is accepted on behalf of
the City of Kenai, as l
By: 61.
/D AW
Itd"4164.
11
/o At Gs Alz`!s
OWN
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