Loading...
HomeMy WebLinkAboutOrd1953-226 r -_.... RT HF 4-9-.53 8 ORDINANCE NO. 226 AN ORDINANCE of the City of Seward, Alaska, confirming the result of elections held therein on September 17, 19.51, and February 26, 1952; providing for the issuance of water revenue bonds of the city in the total princinal sum of $400,000; fixing the date, form, terms and maturities of said bonds; creating a Water Revenue Fund and a Surplus Account therein, a Water Department Main- tenance and Oneration Fund, a Bond Redemption Fund for the payment of the principal and interest of said bonds and a Reserve Account; providing certain covenants safeguarding the payment of the principal and interest of said bonds; and confirming their sale. iVHEREAS, by Ordinance No. 213, passed and approved AU6~st 24, 19.51, it was provided that a proposition should be submitted to the qualified voters of the city at a special election to be held therein on September 17, 1951, of whether or not it should acquire all of the assets of the Seward Water Company and should enter into an agreement with the owner thereof to pay the sum of $80,000 therefor, such pur- chase price to be paid out of the proceeds of sale of revenue bonds, which bonds might be issued as a separate series or in combination with other bonds to be authorized for the extension and improvement of said system; and WHEREAS, by Resolution No. 14, adopted January 23, 1952, it was provided that a proposition shou~d be submitted to the qualified voters of the city at a special election to be held therein on February 26, 1952, of whether or not it should issue its water revenue bonds in an amount not to exceed $400,000 for the purpose of purchasing, re- habilitating, bettering and extending said water system; and WHEREAS, at said elections said propositions carried by the requisite proportion of votes cast; and r I I , i I i I i I vffiEREAS, it is deemed necessary that the city now issue and sell all of said $400,000 of said water revenue bonds so authorized to provide funds to pay for the acquisition of said system and for rehabilitating, bettering and extending the same as deemed necessary; and WHEREAS, the city has entered into a written agreement with Foster & Marshall, Blyth. & Co., Inc. and Allison-Williams Company, in- vestment bankers, whereby the city has agreed to sell said bonds to said investment bankers under the terms and conditions thereof as here- inafter provided; NOW, THEREFORS, BE IT ORDAINED by the Common Council of the City of Seward, Alaska, as follows: Section 1. That the result of the special election held within the city on September 17, 1951, wherein the qualified voters of the city authorized the city to acquire all of the assets of the Seward ivater Company at a Durchase price of $80,000 and, to provide funds necessary therefor, to issue and sell its water revenue bonds in such amount, and the result of the special election held within the city of February 26, 1952, wherein the qualified voters of the city authorized the issuance of water revenue bonds in the principal sum of not to exceed $400,000 for the Duruose of purchasing, rehabili- tating, bettering and extending such water system, are hereby in all respects ratified and confirmed. Section 2. That for the purpose of providing funds to pay the cost of the acquisition of all of the assets of the Seward Water Company and to acquire, construct and install necessary additions, betterments and improvements thereto and repairs, replacements and extensions thereof, the city shall now issue and sell its water revenue bonds in the total principal sum of $400,000. 2. Said bonds shall be dated May 1, 1953, shall be in denomina- tions of $1,000 each, shall be numbered from 1 to 400, inclusive, and shall bear interest at the rate of 6% per annum to and including May 1, 1956, and thereafter at the rate of 4 3/4% per annum, all of said in- terest being paY9,b1e semiannually on the first days of May and November of each year. The interest payable upon said bonds from the date thereof to May 1, 1956, shall be evidenced by two coupons for each installment thereof. One form of coupon shall evidence interest due at the rate of 4 3/4% per annum to the date of maturity of each bond, and the other form of coupon shall evidence interest due at the rate of 1 1/4% per annum up to and including May 1, 1956. Said bonds shall mature in order of their number as follows: I !I :1 il il II Ii Ii II Ii Ii I r. 4,000 ;. ~, ( 1968 $1.5,000 I>fay 1, 1954 ill> },lay 1, May 1, 1955 4,000 May 1, 1969 16,000 May 1, 1956 4,000 lilay 1, 1970 17,000 May 1, 1957 9,000 May 1, 1971 17,000 May 1, 1958 9,000 May 1, 1972 18,000 lfJa Y 1, 1959 10,000 , lvlay 1, 1973 19,000 May 1, 1960 10,0001711 ,May 1, 1974 20 , 000 lIlaY 1, 196;1. 11 , 000 ,U;;,;;~May 1, 1975 21,000 May 1, 1962 11,000 Ii Ii.:. 'lIJaY 1, 1976 22,000 May 1, 1963 12,000 May 1, 1977 23,000 Nay 1, 1964 12,000 May 1, 1978 24,000 May 1, 1965 13,000 May 1, 1979 25,000 May 1, 1966 14.000 l>fa y 1, 1980 26,060 Hay 1, 1967 14,000 Both principal and interest of said bonds shall be payable in lawful money of the United States of America at the Main Office of the Seattle Trust and Savings Bank in Seattle, Washington, and shall be obligations only against the special Bond Redemption Fund created by this ordinance. The City of Seward hereby reserves the right to redeem the outstanding bonds of this issue at par in inverse order of annual maturities only, on any interest payment date on and after May 1, 1963. Notice of any such intended redemption shall be given by one publication thereof in the Seattle Daily Journal of Commerce not more than forty nor less than thirty days prior to said redemption date and by mailing a 3. r I I I like notice at the same time to the places of business of Foster & ~~rshall and Blyth & Co., Inc. in Seattle, Washington, and Allison- Williams Company in Minneapolis, Minnesota. Interest on any bond or bonds so called for redemption shall cease on such redemption date. Section 3. Said bonds shall be in subst&.ntially the following form: UNITED STATES OF AMERICA TERRITORY OF ALASKA CI':!'Y OF SEWARD WATER REVENUE BOND, 1953 KNO~v ALL MEN BY THESE PRESENTS: That the City of Seward, a municipal corporation of the Territory of Alaska, hereby acknowledges itself to owe and for value received promises to p&.y to bearer on the first day of May, 19~, the principal sum"of ONE THOUSAND DOLLARS together with interest thereon at the rate of 6%jPer annum to May 1, 1956, and thereafter at the rate of 4 3/4~ per annum (said 6% interest to be evidenced by coupons for semiannual interest at 4 3/4% per annum from date of issue to date of maturity of this bond and by detachable coupons for semiannual interest at 1 1/4% per annum from date of issue of this bond to and including May 1, 1956), payable semiannually on the first days of }flaY Etnd November of each" year as evidenced by and upon presentation and surrender of the attached interest coupons as they severally become due. Both principal and interest are payable in lawful money of the Uni ted States of America at t~1.e lvlain Office of the Seattle Trust and Savings Bank in Seattle, Washington, solely out of the special fund of the city known as "Seward 1953 ivater Revenue Bond Redemp- tion Fund" created by Ordinance No. ~~" of the city. The city has reserved the right to redeem the outstanding bonds of this issue at par in inverse order of annual maturities only, on any interest payment date on and after ~lay 1, 1963. Notice of any such intended redemption shall be given by one publication thereof in the Seattle Dailv Journal of Commerce not more than forty nor less than thirty days prior to said redemption date and by mailing a like notice at the same time to the places of business of Foster & }fJarshall and Blyth & Co., Inc. in- Seattle, Washington, and Allison-Williams Company in Minneapolis, Minnesota. This bond is one of an issue of water revenue bonds of the city of like date and tenor in the total principal sum of $400,000 and authorized by vote of the qualified voters of the city. Said bonds are issued for the purpose of providing funds to acquire a water system and acquire, construct and install necessary additions, betterments and improvements thereto and repairs, replacements and extensions thereof, and are payable solely out of the gross revenue of said water system. 4. The City of Seward hereby covenants and agrees with the holder of this bond that it will keep and uerform all the coven8.nts of this bond and of Resolution No. 14 and Ordinances No. 213 and No. ;;J.Q21. to be by it kept and per- formed. The city does hereby pledge and bind itself to set aside out of the gross revenue of said water system deposited in the Water Revenue Fund of the city, and to pay into said Bond RedBmption Fund and the Reserve Account created therein by said Ordinance No. :<....;z..-'..._, the various amounts required by said ordinance to be paid into and maintained in said Fund and Account, all within the times provided by said ordinance. The city has further bound itself to maintain said water system in good condition and repair, to operate the same in an efficient manner and at a reasonable cost, and to estab- lish, maintain and collect rates and charges for water that will provide revenue equal to at least 1.5 times the average amount required each calendar year to pay the principal and interest of all the outstanding bonds of this issue after necessary costs of maintenance and operation of said water system have been paid but before depreciation. It is hereby certified and declared that said bonds are issued pursuant to and in strict compliance with the Laws of the United States of America and the Territory of Alaska and Ordinances and Resolutions of the City of Seward, 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 as required by law. IN WITNESS vlHEREOF, the City of Seward has caused this bond to be signed by its ~fuyor, attested by its Clerk, and the corporate seal of the city to be impressed hereon, and the interest coupons attached hereto to be signed with the facsimile signatures of said offioi8.18, this first day of May, 1953. ATTEST: ~nJ J-I~ v City Olerk :;0Z::~~~ Mayor The interest coupons to be attached to said bonds shall be in substantially the following form: (Semiannual Coupons to Maturity) NO. $23.75 On the first day of Seward, Alaska, will pay to bearer the Seattle Trust and Savings Bank , 19_, the City of at the ~~in Office of in Seattle, Washington, 5. ~ , I I the sum of Tv~NTY-THREE AND 75/100 DOLLARS in lawful money of the United States of America out of the suecial fund of the city known as IlSeward 19.53 \vater Revenue" Bond Redemution Fund,1l said sum being semiannual interest due that day on its Water Revenue Bond dated ~~y 1, 1953, and numbered CITY OF SEWARD, ALASKA By Mayor ATTEST: City Clerk (Semiannual Additional Coupons to May 1, 1956) NO. $6.25 On the first day of , 19__, the City of Seward, Alaska, will pay to bearer at the ~~in Office of the Seattle Trust and Savings Bank in Seattle, Washington, the sum of SIX AND 25/100 DOLLARS in lawful money of the United States of America out of the suecial fund of the city known as "Seward 1953 Water Revel1Ue Bond Redehtption Fund," said sum being semiannual interest due that day on its Water Revenue Bond dated V~y 1, 1953, and numbered CITY OF SEWARD, ALASKA By Mayor ATTEST: City Clerk Section 4. Said bonds shall be 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 interest coupons attached to said bonds s~~ll be si;ned with the facsimile signatures of said officials. Section 5. There is hereby created a suecial fund of the ci ty to be kno..rn as the "Water Revenue Fund, II into which Fund shall be deposited as collected all of the gross earnings and revenue of the water system of the city and all additions, betterments and improvements 6. I thereto and extensions thereof. All payments required to be made into the Maintenance and Operation Fund hereinafter created, and all pay- ments required by this ordinance to be made into the Bond Redemption Fund and Reserve Account therein shall be paid out of said Fund. Section 6. A Surplus Account is hereby created in said Water Revenue Fund, and all moneys remaining in said Fund after the payments made each month into the Maintenance and Operation Fund, the Bond Redemption Fund and the Reserve Account created therein shall be credited at the end of each month to the Surplus Account. Moneys in said Surplus Account shall be used only for the following purposes: (a) For purchasing necessary equipment, making necessary repairs or replacements to the water system, and for necessary capital improvements thereto; (b) For constructing and installing additions, betterments and improvements to and extensions of the water system that are econ- omically sound; (c) For redemption of the bonds of this issue ahead of their fixed maturities as authorized herein, or for purchase of any of said bonds in the open market for retirement only. Section 7. There is hereby created another special fund of the city to be krio'Hn as the II\'/a ter Department YJ8.intenance and Operation Fund. II There s118.ll be transferred into said Fund at the end of each month from the Water Revenue Fund sufficient money to pay all expenses of maintenance and operation of said water system for the next follow- ing month, and the moneys in such Maintenance and Operation Fund shall be used for the sole purpose of paying the expenses of maintenance and operation of said water system. Section 8. There is hereby created another special fund of the city to be known as IISeward 1953 Water Revenue Bond Redemption Fund, II hereinafter called the IIBond Redemption Fund, II which Fund is 7. r I to be drawn upon for the sole purpose of paying the principal and interest of the water revenue bonds authorized herein as the same shall become due. The city hereby obligates and binds itself to set aside and pay into the Bond Eedemption Fund out of the money in said Water Revenue Fund the sum of $2,800 per month. Such payments shall be made on or before the twentieth day of each month, shall commence with the month of Y~y, 1953, and sr~ll continue until sufficient mane;)' r~s been so transf.erred to pay the principal and interest to maturity of all the outstanding water revenue bonds authorized herein. Section 9. A Reserve Account is hereby created in the Bond Redemption Fund, and the city hereby covenants and agreee that all surplus money remaining in the Bond Redewption Fund, after the required payments of principal and interest of the bonds authorized herein have been made therefrom, shall be credited to said Reserve Account imme- diately after each interest or principal and interest payment date. Wnen the amount of $27.500 has been so credited, the city further covenants and agrees that it will at all times maintain that amount in said Account until there is a sufficient amount in the Bond Redemption Fund and Reserve Account to pay the principal and interest to maturity of all the outstanding water revenue bonds authorized herein. In the event there sr~ll be a deficiency in the Bond Redemption Fund to meet maturing installments of either interest or principal and interest of said bonds, such deficiency shall be made up from the Reserve Account by the withdrawal of cash therefrom. Any deficiency created in the Eeserve Account by reason of any such withdrawal shall then be made up as soon as possible from money in the Surplus Account plus any surnlus money in the Bond Redemntion Fund after sufficient - money is left in said Fund to pay the interest or principal and interest ~. ~.,:.:>Of '" l> ~ \"...... ~ "i in \} , , the water revenue bonds authorized herein next coming due. The city further agrees that the surplus or additional money ~ the Bond Redemption Fund credited to the Reserve Account after said ) 8. r sum of $27,500 has been reached shall be maintained in said Account until such additional amount is eaual to the principal amount of the last annual maturity of the outstanding bonds authorized herein, and that such additional amount shall then be used to redeem and retire the bonds of such last annual maturity. It is hereby provided, however, that the city may, at its option, withdraw sufficient money from the Surplus Account hereinbefore created and use the same with such additional money in the Reserve Account to so redeem and retire such bonds. Section 10. The City of Seward hereby covenants with the owner and holder of each of the water revenue bonds authorized herein as follows: (a) That it will establish, maintain and collect rates and charges for water for as long as any of the bonds authorized herein are outstanding that will make available for the payment of the prin~ cipal and interest thereo~ as the same shall accrue an amount equal to at least 1.5 times the average amount required each calendar year to pay such principal and interest. The amount "available for the payment of the principal and interest thereof as the same shall accruell is hereby defined as the "gross revenue of the water system less expenses of maintenance and operation but before depreciation." (b) That it will at all times maintain and keep said water system and all additions, betterments and improvements thereto and extensions thereof in good repair, working order and condition, and will at all times onerate such system and the business in connection therewith in an efficient manner and at a reasonable cost. (c) That it will not sell or otherwise dispose of the properties of this water system unless nrovision is made for payment into the Bond Redemption Fund of a sum sufficient to pay the principal 9. r i and interest of all the outstanding water revenue bonds authorized herein in accordance with the terms thereof. (d) That it will cause an audit to be made each calendar year of the books and accounts of the Water Department by an inde- pendent certified public accountant or firm of certified publiC accountants, which audit shall show the income and exuenditures of said Water Department, the balance sheet as of the end of the last fiscal year, comments in regard to the manner in which the city has carried out the reauirements of this ordinance, a list and amount of insurance policies in force on said system or any parts thereof, and the number of water customers. (e) That it will at all times carry fire insurance on any buildings and equipment of said Water Department as are ordinarily insured to the full insurable value thereof, and will also carry adequate public liability insurance and such other types of insurance as under good practice is ordinarily carried on such a utility and all its real and personal properties. If and when the United States of America or some agency thereof shall provide for war risk insurance, the city further agrees to take out and maintain war risk insurance on all or such portion of the properties of said Water Department upon which such war risk insurance may be written in an amount or amounts which will adequately cover the value thereof. Section 11. The action of the Common Council on V~rch 31, 1953, in accepting the written offer of Foster & Marshall and Blyth & Co., Inc. of Seattle, Washington, and Allison-Williams Company of Minneapolis, Minnesota, of March 27, 1953, to purchase these bonds 10. I'--~ ,- at par and under the terms and conditions as set forth in said written offer and with the terms, covenants and conditions of said bonds as herein provided, and the action of the Mayor and Clerk of the city in executing the acceptance of s8id "rritten offer, are hereby in all respects ratified and confirmed. Section 12. The moneys derived from the sale of the water revenue bonds authorized herein shall be used solely for the purposes provided in Ordinance No. 213 and Resolution No. 14 of the city and as provided herein. The city officials are hereby authorized and directed to do everything necessary for the acquisition of all the assets of the Seward Water Company, free and clear of any and all incumbrances thereto, for the construction and installation of said additions, betterments and improvements to andrepairs, replacements and extensions of such system, for the issuance, execution and delivery of said bonds to the purchasers thereof, and for the proper use and application of the funds derived from such sale. Section 13. This ordinance shall take effect immediately upon its passage and approval as required by law. PASSED by the Common Council of the City of Seward, Alaska, and approved by its Mayor this )3 day of April, 1953. CITY~WARD, A~~. By ~R.R\f~) Mayor ATTEST: ~ J-eu::~ City Clerk ll.