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HomeMy WebLinkAboutOrd1955-259 "- ORDINANCE NO. 259 AN ORDINANCE or the City of Seward, Alaska, authorizing the issuance of warrants drawn on the Electric Utility Construction Fund of the city created by Ordinance No. 256, in the principal amount of not to exceea- $300,000 to provide funds for part of the purposes authorized by Ordinanc$No. 253 and No. 258 of the city, and confirming the sale of said warrants. WHEREAS, Ordinance No. 258 of the Ci ty of Seward, Alaska, Electric created th~tility Construction Fund of the city and provided that the Council could authorize the issuance of warrants drawn on said Fund for the purposes set forth in Ordinance No. 253 of the city and approved by the qualified electors thereof at an election held therein on February 23, 1955; and WHEREAS, it is deemed necessary that warrants in the total principal sum of not to exceed $300,000 be issued to pay the cost of part of such purposes; and WHEREAS, the city has heretofore accepted the offer of Grande & Co., Inc. of Seattle, Washington, to purchase said warrants as the same are issued, at par; NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of Seward, Alaska, as follows: Section "1. It is hereby found advisable that the city shall now start to carry out part of the plan of additions and improvements to and extensions of its electric utility system as provided in Ordinance No. 253 and authorized by the qualified electors of the city, and that it should provide funds to pay the cost thereof by the issuance of warrants drawn on the Electric Utility Construction Fund of the city created by Ordinance No. 258 until the principal amount of such warrants outstanding reaches a total amount consistent with the pertinent limiting terms of the offer of Grande & Co., Inc. of Seattle, Washington, to purchase them, at which time electric utility revenue bonds shall be issued as authorized in said ordinance and at said election to redeem said outstanding warrants. Section 2. That for the purpose of providing funds to construct and install distribution line extensions to the electric utility system on the Seward-Anchorage Highway between Seward and Mile Eight, together with distribution line extensions on Nash Road and other side roads leading from said highway, to carry out sub- surface exploration work, to possibly construct an access road or trails to Crescent Lake, to pay certain engineering fees and costs for engineering services rendered, and to pay certain engineering fees and costs for engineering services to be rendered in preparing plans necessary to carry out the rest of the plan of additions and improvements to and extensions of the electric utility system of the city as provided in said Ordinance No. 253, the city shall now issue and sell its warrants drawn on the Electric Utility Construction Fund created by Ordinance No. ~ in the principal sum of not to exceed $300,000. Said warrants shall be numbered from 1 up consecutively, shall bear interest at the rate of r:% per annum from date of issuance until paid, shall mature on March 1, 1956, shall be callable on any date on ten days' written notice to the hereinafter named purchaser thereof, shall be sold to Grande & Co., Inc. of Seattle, washington, at par, shall be dated as authorized on motion duly made, seconded and passed by the Cornmon Council, and shall be in such denominations (not less than $1,000) as shall be agreed upon between the city and 2. I I . .. said Grande & Co., Inc. Section 3. This ordinance shall take effect immediately upon its passage, approval, execution and posting or publication in the manner required by law and ordinances of the City of Seward. PASSED by the Common Council of the City of Seward and October approved by its Mayor this 3rd day of f1f/"fJ"~,t, 1955. CITY~ 1[2 By ..:4/ . AJ;:!;.I Mayor A~~~ City Clerk j 3.