Loading...
HomeMy WebLinkAboutOrd1951-211 I- I I I i I , RT HF 1-26-51 8 ORDINANCE NO. 2..l1 AN ORDINANCE of the City of Sewa.rd, Alaska, confirming the result of a snecial election held therein on December 11, 1950~ for the adoption of a plan authorizing the city to acquire, construct and install certain additions and improvements to and extensions of the electric utility system of the city and authorizing the issuance of electr.ic utility revenue bonds in the total nrincinal sum of not to exceed $200,000 to pay the cost" thereof, authorizing the issuance of said bonds, fixing the date, form, terms and maturities thereof, creating a fund for the payment of the principal and interest thereof and a Reserve Account, providing certain other covenants safeguarding the payment thereof, confirming their sale, and declaring an emergency. WHEREAS, at a s~ecial election held in the City of Seward, Territory of Alaska, on December 11, 1950, nursuant to Ordinance No. 206 of the city, passed and anproved November 20, 1950, the oualified electors of the city duly authorized the issuance of electric utility revenue bonds in the total principal sum of not to exceed $200,000 for the purpose of providing funds to pay the cost of acquiring, constructing and installing certain additions cWO im'Jrovements to and extensions of the electric utility system of the city; and WHEREAS, it is deemed necessary and advisable that the city now issue and sell all of said bonds so authorized to provide the funds necessary for the purposes fixed in said ordinance and ratified at said election; and WHEREAS, the city has heretofore accepted the written offer of Grande & Co., Inc. of Seattle, Washington, dated January 26, 1951, to 1Jurchase said bonds, the terms of said bonds to be as fixed in said offer and in this ordinance; and WHEREAS, Ordinance No. 200 of the city, adopted February 6, 1950, provided that electric utility revenue bonds of the city in addition to those authorized by said 6rdinance No. 200 could be issued on a ! ! parity with the revenue bonds issued under said Ordinance No. 200 if certain conditions as set forth in said ordinance were met; and Wh~REAS, it appears to the Common Council that said conditions have been met and that the said $200,000 of electric utility revenue bonds may now be issued on a parity with the electric utility revenue bonds of the city now outstanding; NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of Seward, Territory of Alaska, as follows: Section 1. That the adoption by the qualified electors of the City of Seward, Territory of Alaska, at the special election held therein on December 11, 1950, of a proposition providing for the acquisition, construction and installation of certain additions and improvements to and extensions of the electric utility system of the city and the issuance of not to exceed $200,000 of electric utility revenue bonds to pay therefor is hereby in all respects ratified and confirmed. Section 2, It is hereby found and declared that the conditions of Section 11 of Ordinance No. 200 of the city, adopted February 6, 1950, uermitting the issuance of additional revenue bonds on a parity with the electric utility revenue bonds authorized in said ordinance he,ve been met in that First, there was not on January 1, 1951, nor is there at the time of the adoption of this ordinance, any deficiency in the Bond Redemution Fund and Reserve Account created therein created by Section 8 of Ordinance No. 200; and Second, the net income of the electric utility system of the city as defined in Section 11 of said Ordinance No. 200 for the 2. ~ twenty-four months next preceding the issuance of the revenue bonds authorized herein (January 1, 1949 to December 31, 1950) has been and is 1.5 times the amounts which will be required each calendar year to pay the princinal and interest due on the outstanding revenue bonds issued nursuant to said Ordinance No. 200 and the revenue bonds authorized herein. The Common Council hereby expressly finds that, said conditions and requirements having been met as aforesaid, the revenue bonds urovided for herein shall be entitled to and are hereby declared to be on a parity with the outstanding electric utility revenue bonds of the city issued under date of March 1, 1950, and that the revenue bonds authorized herein constitute a prior lien on the gross revenue of said electric utility system and all additions and improvements thereto, equal in rank to the charges upon such revenue for the payment of the urincipal and interest of s8.id revenue bonds issued under date of M8.rch 1, 1950, and superior to all other charges what- soever except the charges necess8.ry for maintenance 8.nd oper8.tion of said electric utility system. Sectio~-1. That for the purpose of providing funds to acquire and install units necessary to incre8.se the electric power and energy cap8.city of the electric utility system and increasing the size of the concrete building presently housing the generating units of the system and for constructing and installing necessary additions and improvements to and extensions of the electric utility system, all as authorized in Ordinance No. 206, passed and approved November 20, 1950, and ratified by the qualified electors of the city at a special election held therein on December 11, 1950, the city shall now issue and sell the $200,000 of electric utility revenue bonds provided for in said ordinance and ratified at said election. 3. r Said bonds shall be dated January 1, 1951, shall be numbered from 1 to 200 inclusive, shall be in denominations of $1,000 each, shall be2r interest at the rate of 4 3/4;;; per annum payab:l.e semi- annually on the first days of January and July of each year, and shall mature in order of their number as follows: January 1, 1952 Janu2_ry 1, 1953 Janu2ry 1, 1954 Je.nu2ry 1, 1955 January 1, 1956 January 1, 1957 January 1, 1958 January 1, 1959 Janu[o.ry 1, 1960 January 1, 1961 January 1, 1962 January 1, 1963 $3,000 3,000 4,000 4,000 4,000 5,000 5,000 5,000 5,000 6,000 6,000 6,000 January 1, 1964 January 1, 1965 January 1, 1966 January 1, 1967 J 1, 19b/8 anuary January 1, 1969 January 1, 1970 January 1, 1971 January 1, 1972 January 1, 1973 Janu8.ry 1, 1974 January 1, 1975 $ 6,000 7,000 7,000 7,000 8,000 8,000 8,000 17,000 18 ,000 19,000 19,000 20,000 Said bonds shell be payable in lal'Tful money of the United States of America at the Main Office of the Seattle Trust and Savings Bank in the City of Seattle, Washington, and shall be obligations only against the snecial Bond Redemption Fund created by this ordinance. The city hereby reserves the right to redeem any or all of the outstanding bonds of the issue authorized herein at par in inverse numerical order on any interest payment date on and after ten years from date of issue. Notice of any such intended redemption shall be given by nublication thereof in newspapers of general circulation in the Cities of Seward, Territory of Alaska, and Seattle, Washington, once a week for two successive weeks, the date of each first publication to be not more than forty-five nor less than thirty days prior to said redemntion date. Interest on any bond or bonds so called for redemption shall cease on such redemption date. Section 4. Said bonds shall be in substantially the following form: 4. r NO. $1,000 UNITED STATES OF A}lERICA TERIUTORY OF ALASKA, CITY OF SEWARD ELECTRIC UTILITY REVENUE BOND, 1951 KNOW ALL MEN BY THESE PRESENTS: That the City of Seward, a municipal corporation of the Territory of Alaska, for value received hereby promises to pay to bearer on the first day of January, 19__, the principal sum of ONE THOUSAND DOLLARS together with interest thereon at the rate of 4 3/4% uer annum payable semiannually on the first days of January and July 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 United States of America at the Main Office of the Seattle Trust and Savings Bank in the City of Seattle, Washington, solely out of the special fund of the city known as "Seward 1951 Electric Utility Revenue Bond Redemption Fund", created by Ordinance No. -Z_lL of the city. The city has reserved the right to redeem any or all of the outstanding bonds of this issue at par in inverse numerical order on any interest payment date on and after ten years from date hereof. Notice of any such intended redemption shall be given by publication thereof in news- papers of general circulation in the Cities of Seward, Territory of Alaska, and Seattle, Washington, once a week for two successive weeks, the date of each first publica- tion to be not more than forty-five nor less than thirty days prior to said redemption date. This bond is one of an issue of electric utility revenue bonds in the total principal sum of $200,000 of like date and tenor, issued for the purpose of providing funds to pay the cost of acquiring, constructing and installing certain additions and improvements to and extensions of the electric utility system of the city, and is payable solely out of the gross revenue of said system. The city hereby covenants and agrees with the holder of this bond that it will keep and perform all the covenants of this bond and of said Ordinance No. 2ll- to be by it kept and performed, and the city does hereby pledge and bind itself to set aside from the gross revenue of said electric utility systemjand all additions and improvements thereto 5. L,.j and extensions thereo~ paid into the Electric Utility Revenue Fund of the city created by Ordinance No. 200 and to pay into said Bond Redemption Fund and the Re- serve Account created therein the various amounts re- quired by said Ordinance No. 211 to be paid into and maintained in said Fund and Account, all within the times provided by said ordinance. Said amounts so pledged are hereby declared to be a prior lien and charge upon the gross revenue of said system, including all additions and improvements thereto and extensions thereof, equal in rank to the charges upon such revenue and the moneys in such Revenue Fund for the payment of the principal and interest of the outstanding electric utility revenue bonds of the city issued under date of March 1, 1950, and superior to all other charges of any kind or nature except the necessary cost of maintenance and operation of said system. 11 " \~ The city has further bound itself to maintain said system in good condition and repair, to operate the same in an efficient manner and at a reasonable cost, and to establish, maintain and collect rates and charges for light and power and all other services furnished by said utility that will provide revenue equal to 1.5 times the amounts necessary to pay the average annual principal and interest due on the bonds of this issue and the electric utility revenue bonds of the city issued under date of March 1, 1950, after necessary cosWof maintenance and operation of said system hs_ve been paid. ~ }, " It is hereby certified and declared that said bonds are issued nursuant to and in strict compliance with the Laws of the-United States of America and the Territory of Alaska and the duly adonted Ordinances of the City of Seward. It is hereby further certified and declared that 8_11 acts , conditions and things required to be done precedent to and in the issuance of this bond have happened, been done and nerformed as reQuired by law. ;, ~' IN WITNESS WHEREOF, the City of Seward, Territory of Alaska, has caused this bond to be signed by its Mayor and attested by its Clerk under the corporate seal of the city, and the interest coupons attached hereto to be signed with the facsimile signatures of said officials, this first day of January, 1951. CITY OF SEi'lARD, TERRITORY OF ALASKA By I, I 'j " ATTEST: Mayor (j ~l il I'; I:' , ' t 'j I I , I I 1'.-..' ,- 1 I, : i City Clerk 6. r The interest coupons attached to said bonds shall be in sub- stantially the following form: NO. $23.75 On the first day of , 19__, the City of Seward, Terri tory of Alaska, will pay to bearer 8_t the Main Office of the Seattle Trust and Savings Bank in the City of Seattle, Washington, the sum of TWENTY- THREE AND 75/100 DOLLARS in lawful money of the.United States of America out of the fund of said city known as "Seward 1951 Electric Utility Revenue Bond Redemption Fund", said sum being the semiannual interest due that day on its Electric Utility Revenue Bond dated January 1, 1951, and numbered CITY OF SEWARD, TERRITORY OF ALASKA By ATTEST: Mayor City Clerk Section S. Said bonds shall be signed on behalf of the city by its Mayor and attested by the City Clerk under the corporate seal of the city, and each of the interest coupons shall be signed with the facsimile signatures of said officials. In the event that either or both of the persons who were the duly elected, qualified and acting Mayor and Clerk of the city on January 1, 1951 are not the Mayor or City Clerk on the date of the execution and delivery of these bonds to the purchasers thereof, then those versons who are the duly elected or chosen, qualified and acting Mayor and/or City Clerk on the date of the execution and delivery of these bonds shall sign and attest the same on behalf of the city, and their signatures shall appear on the interest coupons attached thereto. Section 6. That there be and is hereby created in the office of the City Treasurer a special fund to be known as "Seward 1951 Electric 7. r II I: " ~ I Utili ty Revenue Bond Redemption Fund II, \'Jl1ich fund is to be drawn upon for the sole purpose of paying the Drincipal and interest of the bonds 8-uthorized herein. The city hereby obligates and binds itself to set aside and pay into said Bond Redemption Fund, out of the money in the Electric Utility Revenue Fund created by Ordinance No. 200, certain fixed amounts necessGry to pay the principal of and interest on all the outstanding bonds of the issue authorized herein as the same respectively become due and payable. Such payments shall be made into said Bond Redemption Fund on or before the tl'Tentieth da.y of each month, except for the month of January, 1951, in the amounts hereinafter specified: (a) At the time of the sale and delivery of these bonds, the amount received as accrued interest thereon. (b) Beginning with February, 1951, and continuing as long as any of the bonds authorized herein 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 such bonds then outstanding. (c) Beginning with February, 1951, and continuing through December, 1951, an amount equal to at least one-eleventh of the prin- cilJal to become due on January 1, 1952, and continuing thereafter as long as any of the bonds authorized herein are outstanding and unpaid, an amount equal to at least one-twelfth of the princilJal of such payment bonds to become due and payable on the next principay date. The city further covenants to transfer from said Bond Redemption Fund to the Main Office of the Seattle Trust and Savings Bank in Seattle, Washington, at least ten days before any installment of interest or lJrincipal and interest may become due on any of the bonds authorized herein, an amount sufficient to pay such installment. 8. r ! I When there is sufficient money in said Bond Redemption Fund and the Reserve Account hereinafter created to pay the principal and interest to maturity of all the outstanding bonds of the issue authorized herein, then no further payments need be made into said Bond Redemntion Fund. Said amounts so pledged are hereby declared to be a prior lien and charge upon the gross revenue of said electric utility system and all additions and improvements thereto and extensions thereof, and upon the moneys in said Electric Utility Revenue Fund, equal in rank to the charges upon such revenue and the money in s8.id Fund for the payment of the principal and interest of the outstanding electric utility revenue bonds of the city issued under date of March 1, 1950, and sunerior to all other charges of any kind or nature except the necess8ry cost of maintenance and operation of said system. Section 7. There is hereby created a Reserve Account in said Bond Redemution Fund, and the city hereby agrees that it will set aside and nay into said Reserve Account, out of the moneys in the Electric Utility Revenue Fund after payments have been made into the 11 Sel-lard Electric Utility Revenue Bond Redemption Fund, 195011 as re- quired by Ordinance No. 200 and into the IISevTard 1951 Electric Utility Revenue Bond Redemption Fundll as required herein, and out of any other moneys which the city may now or later have on hand and ave_ilBble for such purpose, the sum of $14,000 on or before January 1,. 1955. The city further covenants that it will further set aside into said Reserve Account, out of the Electric Utility Revenue Fund after the nayments have been made into the two bond redemption funds as above stated, and out of any and all other moneys which it may later have on hand and available for such purpose, an additional sum of $8,000 on or before January 1, 1961. 9. r , . ,.:; ",-. The city further agrees that when scdd sums have been paid into said Reserve Account as required in the preceding paragraph hereof, it will at all times maintain those amounts therein until there is a sufficient amount in the ~ond Redemption Fund and the Reserve Account to pay the princip8.1 and interest to maturity of all the outstanding bonds of this issue. In the event there shall be a deficiency in the Bond Redemption Fund to meet maturing installments of either principal or interest of the bonds authorized herein, such deficiency shall be made un from the Reserve Account by the wi thdral'Tal of cash therefrom. Any de.- ficiency creRted in the Reserve Account by reason of any such with- drawal shall then be made up from moneys in the Electric Utility Revenue Fund first available after making necessary provision for the required payments into said bond redemption funds. All moneys in the Reserve Account above provided for may be kept in cash or invested in United States Government obligations having a guaranteed market or, if such obligations are not available, then in United States Government obligations maturing not later than twelve years from date of purchase. Interest earned on any such in- vestments Sh81l be deuosited in and become a part of the Bond Redemption Fund. Section 8. The corporate authorities of the city hereby declare that in fixing the amounts to be paid into said Bond Redemption Fund and the Reserve Account created therein as aforesaid, they have had due regard to the cost of maintenance and oper8tion of the system as added to, improved, and extended, and to the amount of the revenue thereof previously pledged for the payment of electric utility revenue bonds heretofore issued, and have not obligated the city to set aside 10. r and Day into said Fund and Account a greater amount or proportion of the revenue of said system th2_n in their judgment ,Till be avail- able over and above such cost of m8intenance and operation and the amount of the revenue so previously pledged. Sectio_~. The city covenants and o_grees with the owners and holders of the bonds authorized herein that the payments into the Bond RederJiTJtion Funds created by Ordinance No. 200 and this ordinance con- stitute the only charges which have been made unon the gross revenue of the electric utility system and the moneys in said Electric Utility Revenue Fund, and that it 10Till not hereafter create any other such fund or funds for the payment of electric utility revenue bonds, warrants, or other obligations, or issue any such obligations or crea te any addi tionEll indebtedness which will rank on a parity with or have priority over the payments into the Bond Redemption Fund created herein, except that it reserves the right to incur additional indebtedness and issue additional revenue bonds, warrants, or other such obligations therefor and to create special funds for the payment thereof into which payments may be made from the Electric Utility Revenue Fund of fixed amounts sufficient to pay the principal of and interest on such additional bonds, warrants, or obligations and to maintain adequate reserves therefor the payments into i"hich such funds may rank equally 10Tith the payments into the Bond RedemDtion Fund created herein, provided it does so in the manner and subject to the conditions and limitations set forth in Section 11 of said Ordinance No. 200. Section 10. The bonds authorized herein shall be entitled to all benefits, rights, privileges and security afforded by Ordinance No. 200 11. r --~ equally and ratably with the outstanding electric utility revenue bonds issued pursuant to said ordinance. All of the terms, provisions and covenants of Sections 10 and 12 of said Ordinence No. 200 shall apply to the bonds authorized herein. and the Bond Redemntion Fund created herein for the payment tr.ereof to the same extent and effect as they do to such outstanding bonds and the snecial funds created by said Ordinance No. 200 for their payment. Section_II. The sale of the bonds authorized herein to Grande & Co., Inc. of Seattle, Washington, according to the written offer to nurchase the same dated January 26, 1951 and heretofore accepted by the city, as their terms are fixed in said offer to purchase and this ordinance, is hereby in all respects ratified and confirmed. The proper officials of the city are hereby authorized and directed to perform all acts necessary for the execution, issuance and delivery of said bonds to said purchaser upon payment of the agreed purchase price therefor, and for the proper use and application of the nroceeds of such sale. Section 12. An emergency is hereby declared to exist, and this ordinance shall take effect immediately after its passage and approval. PASSED by the Common Council of the City of Seward, Territory of Alaska, and approved by its Mayor this ,th day of February , 1951. f:Jr' 1. -;1;. ~A-y' Mayor ATTEST: Luj~ ~/(. j]:.--?:./'~ ,'" ......"'" I' Ci ty Clerk 12.