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HomeMy WebLinkAboutOrd1954-248 r wP -.' . RT HF 6-19-54 8 ORDINANCE NO. 248 AN ORDINANCE of the City of Seward, Alaska, confirming the result of a snecial election held therein on Kay 5, 1954 for the adoption of a plan authorizing the city to acquire and install certain additions and improvements to its electric utility system and to issue its electric revenue bonds in the principal 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 thereof and interest thereon and a Reserve Account, prOViding certain other covenants safeguarding the payment thereof, confirming their sale, and declaring an emergency. -"" WHEREAS, at a special election held in the City of Seward, Alaska, on May 5, 1954, nursuant to Ordinance No. 244 of the city, passed and approved April 5, 1954, the qualified electors of the city duly authorized the issuance of its electric utility revenue bonde in the total principal sum of not to exceed $200,000 for the purpose of providing funds to pay the cost of acquiring and installing certain additions and improvements to the electric utility system of the city; and WHEREAS, it is found to be necessary and advisable that the city issue and sell all of said bonds so authorized in order 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 offer of Grande & Co., Inc. of Seattle, Wasnington, to purchase said bonds under the terms thereof as fixed 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 I to those authorized by and issued under the provisions of said Ordinanc~' / / '"~ r- No. 200 (in the principal sum of $104,000) could be issued on a parity with said revenue bonds issued under said Ordinance No. 200 if certain conditions as set forth in said ordinance were met; and WHEREAS, pursuant to Ordinance No. 211 of the city, $200,000 par value of electric utility reVenue bonds of the city were issued under date of January 1, 1951 on a parity with the outptanding electric utility revenue bonds of the city issued pursuant to Ordinance No. 200 under date of March 1, 1950; and WHEREAS, it appears to the Common Council that said conditions have been met and that the said $200,000 of electric utility revenue bonds authorized by said Ordinance No. 244 and said special election held on May 5, 1954 may now be issued on a parity with the outstanding electric utility revenue bonds issued under dates of March 1, 1950 and January 1, 1951; NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of Seward, Alaska, as follows: Section 1. That the adoption by the qualified electors of the city at the special election held therein on May 5, 1954 of a proposition providing for the acquisition and installation of certain additions and improvements to the eleetric 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. As used in this ordinance, the following words and phrases have the meanings hereinafter set forth unless the context clearly indicates that another meaning is intended. (a) The words "Electric Utility Revenue Fundll mean the fund of that name created by Section 7 of Ordinance No. 200. (b) The words "Presently Outstanding Bonds" mean the out- 2. r standing bonds of the following issues: (1) The Electrio Utility Revenue Bonds, 1950 (hereinafter oalled the 111950 Bonds"), dated March 1,1950, and issued pursuant to Ordinance No. 200 of the city in the original amount of $104,000 (2) The Electrio Utility Revenue Bonds, 1951 (hereinafter called the "1951 Bonds"), dated January 1, 1951, and issued pursuant to Ordinance No. 211 of the city in the original amount of $200,000. (c) "Seward E1eotrio Utility Revenue Bond Redemption FUnd, 195011 (hereinafter called the "1950 Bond Redemption Fundll) means the fund of that name created by Section 8 of Ordinanoe No. 200 for paying the principal of and interest on the 1950 Bonds. "Seward 1951 Electric Utility Revenue Bond Redemption Fundll (hereinafter oa11ed the "195l Bond Redemption FUndll) means the fund of that name created by Section 6 of Ordinanoe No. 211 for paying the principal of and interest on the 1951 Bonds. (d) The words 111954 Bonds" or lithe Bonds" mean the $200,000 of electric utility revenue bonds of the oity authorized in this ordinanoe. Section ). It is hereby found and deolared that the oonditions of Section II of Ordinanoe No. 200 of the oity and Section 9 of Ordinanoe No. 211 of the oity, permitting the issuance of additional revenue bonds on a parity with the Presently outstanding Bonds have been met, in that First, there is not at the time of the adoption of this ordinanoe any defioiency in the 1950 Bond Redemption FUnd and the Reserve Account oreated therein, or in the 1951 Bond Redemption Fund and the Reserve Account created therein; and Second, Metcalf & Harstad Associates, oonsulting engineers of Seattle, Washington, approved by Grande & Co., Ino., have prepared ). and filed with the Common Council an estimate of the cost of the additions and improvements to the electrio utility system provided for in Ordinanoe No. 244, whioh shows that said engineers are rea- sonably oertain that the earnings of the electrio utility system as added to and improved, less oosts of maintenanoe and operation of such system, will be 1.5 times the amounts necessary each year for debt service on the Presently Outstanding Bonds and the 1954 Bonds. The Common Council hereby expressly finds that said oonditions and requirements having been met as aforesaid, the 1954 Bonds shall be entitled to and are hereby declared to be on a parity with the Presently Outstanding Bonds, and that the 1954 Bonds constitute a prior lien on the money in the Electric Utility Revenue Fund equal in rank to the charges upon such Fund for the payment of the prinoipal of and interest on the Presently Outstanding Bonds, and superior to all other charges whatsoever except those neoessary for maintenance and operation of the electric utility system of the city. Section 4. That for the purpose of providing funds to acquire and install the additions and improvements described in Ordinanoe No. 244 and authorized by the qualified eleotors of the oity at the speoial election held therein on May 5, 1954, the oity shall now issue and sell the $200,000 of electric utility revenue bonds authorized in said ordinance and at said eleotion. Said bonds shall be dated July 1, 1954, shall be in denomina- tions of $1,000 each, shall be numbered, bear interest payable semi- annually on the first days of January and July of eaoh year, and mature as follows: 4. Bond Interest Nos. Maturity Date Amount Rate 1- , July 1, 1955 $ .5,000 4 3/4% 6- 10 July 1, 19.56 5,000 4 3/4% 11- 15 July 1, 1957 5,000 4 3/4% l6- 21 July 1, 1958 6,000 4 3/4% 22- 27 July 1, 1959 6,000 4 3/4% 28- ~? July 1, 1960 6,000 4 3/4% ,4- 2 July 1, 1961 9,000 4 3/4% .3- .51 July 1, 1962 9,000 4 3/4% .52- 60 July 1, 1963 9,000 4 3/4% 61- 70 July 1, 1964 10,000 4 3/4% ?l- 80 July 1, 196.5 10,000 4 3/4% 81- 91 July 1, 1966 11,000 4 3/4% 92- 102 July 1, 1967 11,000 4 3/4% 103-114 July 1, 1968 12,000 4 3/4% 11.5-127 July 1, 1969 13,000 4 3/4% 128-140 July 1, 1970 1~ ,000 4 3/4% 141-l.54 July 1, 1971 1 ,000 4 3/4% 1.5.5-l6t July 1, 1972 1.5,000 4 3/4% 170-18 July 1, 1973 1.5 , 000 4 3/4% l8.5-200 July 1, 1974 16,000 4 3/4%. In addition to the interest rates fixed above, all of said bonds shall bear an additional interest rate of 1 1/4% per annum payable annually on July first of each year until July 1, 1960, except that bonds numbered 1 to 27 inclusive shall bear such additional interest rate of 1 1/4% per annum to their respective maturity dates only. The above de- scribed interest payable upon said bonds from the date thereof to July 1, 1960 shall be evidenced by two coupons for each installment thereof, and the coupons representing the 1 1/4% interest payable annually shall be detached from said bonds. 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 the City of Seattle, Washington, and shall be obligations only against the special Bond Redemption Fund created by this ordinance. The oitY' hereby reserves the right to redeem any or all of the outstanding 19.54 Bonds at par plus accrued interest in inverse numerical order on any interest payment date on and after ten years trom date of issue. Notice of anY' such intended redemption shall be given by publication thereof in newspapers of general circulation in ,. r the Cities of Seward, Alaska, and Seattle, Washington, onoe a week for two oonseoutive weeks, the date of eaoh first publioation to be not aore than forty-five nor less than thirty days prior to said redemption date. Interest on any bond or bonds so called for redemption shall oease on such redemption date unless the same are not redeemed upon presentation made pursuant to suoh oall. Section 5. Said bonds shall be in substantially the following form: UNITED STATES OF AMERICA NO. $1,000 TERRITORY OF ALASKA CITY OF SEWARD ELECTRIC U'l'ILITY REVENUE BOND, 1954 KNOW ALL KEN BY THESE PRESENTS: That the City of Seward, a municipal oorporation of the Territory of Alaska, for value reoeived hereby promises to pay to bearer on the first day of July, 19__, the prinoipal sum of ONE THOUSAND DOLLARS together with interest thereon at the rate of 6% to July 1, 1960, and thereafter at the rate of 4 3/4% per annum (said 6% interest to be evidenced by coupons for semiannual interest attached hereto at 4 3/4% per annum from date of issue to date of aaturity of this bond, and by detached coupons for annual interest at 1 1/4% per annum from date of issue to and in- cluding July 1, 1960 or the date of maturity of this bond, whichever is earlier), payable semiannually on the first days of January and July of each year as evidenced by and upon pre- sentation and surrender of such interest coupons as they severally become due. Both prinoipal 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 Seattle, Washington, solely out of the speoial fund of the city known as 'Seward 1954 Electric Utility Revenue Bond Redemption Fund" created by Ordinance No. 248 of the city. The city has reserved the right to redeem any or all of the outstanding bonds of this issue at par plus aoorued interest in inverse numerical order on any interest payment date on and after ten years from date hereof. Notice of any suoh intended 6. t. , I I I redemption shall be given by publication thereof in newspapers of general oirculation in the Cities of Seward, Alaska, and Seattle, Washington, onoe a week for two oonsecutive weeks, the date of each first publication to be not more than forty- five nor less than thirty days prior to said redemption date. This bond i8 one of an issue of electrio utility revenue bonds of like amount, date and tenor in the total principal sum of $200,000, and is issued pursuant to duly and regularly adopted ordinances of the city and a vote of the qualified electors thereof. Said bonds are issued for the purpose of prOViding funds to pay the cost of acquiring and installing certain additions and improvements to the electric utility system of the city, and are payable solely out of the gross revenue of said SY'stem. 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 Ordinances No. 244 and No. 248 to be by it kept and performed. The citY' does hereby pledge and bind itself to set aside from the Eleotric Utility Revenue Fund of the city, into which it has pledged shall be paid the gross earnings and revenue of said electric utility system as the same are collected, and to pay into said Bond Redemption Fund and the Reserve Account cre- ated therein, the various amounts required by said Ordinance No. 248 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 moneys in said Electric Utility Revenue Fund superior to all other charges of any kind or nature except the necessary cost of maintenance and operation of said system, and equal in rank to the oharges upon said Fund for the payment of the prin- oipa1 of and interest on the outstanding Electrio Utility Revenue Bonds of the city issued under dates of March 1, 1950 and January 1, 1951. The city has further bound itself to maintain said system in good condition and repair, to operate the same in an effioient manner and at a reasonable cost, and to establish, maintain and oollect rates and oharges 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 outstanding eleotric revenue bonds of the oity and on the bonds of this issue after neoessary oosts of maintenance and operation of said system have been paid. It is hereby oertified and deolared that said bonds are issued pursuant to and in striot complianoe with the laws of the United States of America and the Territory of Alaska and the duly adopted ordinanoes of the City of Seward. It is hereby further oertified and deolared that all aots, oonditions and things required to be done precedent to and in the issuanoe of this bond have happened, been done and performed. 7. ~ IN WITNESS WHEREOF, the City of Seward has caused this bond to be signed by its Mayor, 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 officials, this first day of July, 1954. CITY OF SEWARD, ALASKA By Mayor ATTEST: Oi ty Clerk 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 , 19__, the City of Seward, Alaska will pay to bea~erat the Main Offioe of the Seattle Trust and Savings Bank in Seattle, Washington, the sum of TWENTY-THREE AND 75/100 DOLLARS in lawful money of the United States of America out of the special fund of the c1ty known a8 .Seward 1954 Electric Utility Revenue Bond Redemption Fund", said sum being semiannual interest due that day on its Electrio Utility Revenue Bond dated July 1, 1954 and numbered CITY OF SEWARD, ALASKA .By Mayor ATTEST: 01 ty Clerk (Annual Additional Detaohed Ooupons to July l, 1960 or Date of Maturity if Earlier) NO. $12.50 On the first day of July, 19__, the City of Seward, Alaska will pay to bearer at the Main Offioe of the Seattle Trust and SaVings Bank in Seattle, Washington, the sum of TWELVE AND 50/100 DOLLARS in lawful money of the United States of America out of the special fund of the oity known as lSeward 1954 Eleotrio Utility Revenue Bond Redemption Fundi 8. I said sum being annual interest due that day on its Electric Utility Revenue Bond dated July 1, 1954 and numbered . CITY OF SEWARD, ALASKA By Mayor ATTEST: City Clerk Section 6. 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 oity impressed thereon. The interest coupons provided for herein shall be signed with the facsimile signatures of said officials. Section 7. That there be and is hereby created in the office of the City Treasurer a special fund of the city to be known as "Seward 1954 Electric Utility Revenue Bond Redemption fundI, which Fund is to be drawn upon for the sole purpose of paying the principal of and in- terest on the 1954 Bonds. 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 certain fixed amounts necessary to pay the principal of and interest on the 1954 Bonds as the same re- spectively become due and payable. Such payments shall be made into said Bond Redemption Fund on or before the twentieth day of each month in the amounts hereinafter specified: (a) Beginning with the month of July, 1954, and continuing as long as any of the Bonds are outstanding and unpaid, an amount equal to at least one-sixth of the 4 3/4% interest to become due and payable at the end of the next ensuing 6-month period on all of the Bonds then outstanding. 9. r ,~ ... (b) Beginning with the month of July, 1954, and continuing as long as any of the 1 1/4% coupons are outstanding and unpaid, an amount equal to at least one-twelfth of the interest represented by such coupons to beoome due and payable at the end of the next ensuing l2-month period. (c) Beginning with the month of July, 1954, and continuing 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 the next principal payment 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 principal and interest may become due on any of the Bonds, an amount sufficient to pay each such installment. 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 of the outstanding 1954 Bonds, then no further payments need be made into said Bond Redemption Fund. Said amounts so pledged to be paid into said Bond Redemption Fund and into the Reserve Account therein hereinafter created are hereby declared to be a prior lien and charge upon the money in the Electrio Utility Revenue Fund superior to all other charges of any kind or nature except the necessary cost of maintenance and operation of said electric utility system, and equal in rank to the charges upon such Fund for the payment of the principal of and interest on the Presently Outstanding Bonds. Section 8. There is hereby created a Reserve Account in said Bond Redemption Fund, and the city hereby agrees that it will set aside 10. I r and paY' into said Reserve Account out of the money in the Electric Utility Revenue Fund after payments have been made into the 1950 Bond Redemption Fund as required by Ordinance No. 200, into the 1951 Bond Redemption Fund as required by Ordinance No. 211, and into the Seward 1954 Electric Utility Revenue Bond Redemption Fund as required herein, the sum of at least $300 per month commenoing with the month of August, 1954, until the total amount of $18,000 has been paid therein. The city further agrees that when said sum of $18,000 has been paid into said Reserve Account, it will at all times maintain that amount therein until there is a sufficient amount in said Bond Redemption Fund and Reserve Account to redeem and retire all of the 1954 Bonds outstanding. In the event there shall be a deficiency in said Bond Redemption Fund to meet maturing installments of either principal or interest of the 1954 Bonds, such deficiency shall be made up from the Reserve Account by the withdrawal of cash therefrom. Any deficiency created in the Reserve Account by reason of any such withdrawal shall then be made up from the moneY'S in the Electric Utility Revenue Fund first available after making necessary prOVision for the required payments into said Bond Redemption Funds. All money 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 trom date of purchase and in no event later than the last maturity of the 1954 Bonds. Interest earned on any such investments shall be de- posited in and become a part of said Bond Redemption Fund. Section 9. The corporate authorities of the city hereby declare, 11. in fixing the amounts to be paid into said Bond Redemption Fund and Reserve Account as aforesaid, that they have had due regard to the cost of maintenance and operation of the electric utility system of the city and to the amount of the revenue thereof previously pledged for the payment of the prinoipal of and interest on the Presently OUtstanding Bonds, and have not obligated the city to set aside and pay into said Fund and Aocount a greater amount or proportion of the revenue of said system than in their judgment will be available over and above such cost of maintenance and operation and the amount of the revenue so previously pledged. Section 10. The oity oovenants and agrees with the owners and holders of the 1954 Bonds that the payments into the Bond Redemption Funds and Reserve Aocounts oreated by Ordinanoes No. 200, No. 211 and this ordinance constitute the only oharges whioh have been made upon the Electric Utility Revenue Fund, and that it will not hereafter create any such bond redemption fund or reserve acoount for the payment of addi- tional eleotrio utility revenue bonds, warrants or other obligations, or issue any such obligations or create any additional indebtedness which will rank on a parity with or have any priority over the payments into the Bond Redemption Fund created herein, except that it reserves the right to incur additional indebtedness and issue additional electrie utility revenue bonds, warrants, or other 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 which such funds may rank equally with the payments into the Bond Redemption Fund created herein, provided it does so in the manner and 12. subject to the conditions and limitations set forth in Section 11 of said Ordinance No. 200. Section 11. The 1954 Bonds shall be entitled to all benefits, rights, privileges and seourity afforded by Ordinance No. 200 and Ordinanoe No. 211 equally and ratably with the Presently Outstanding Bonds. All the terms, provisions and covenants of Sections 10 and 12 of said Ordinance No. 200 shall apply to the 1954 Bonds and the Bond Redemption Fund and Reserve Aooount oreated herein for the payment thereof to the same extent and effect as they do to the Presently Outstanding Bonds and the Bond Redemption Fundsereated by said Ordinances No. 200 and 211 for their payment. Section 12. The sale of the bonds authorized herein to Grande" & Co., Ino. of Seattle, Washington, at par and under the terms of the Bonds as set forth herein is hereby in all respects ratified and con- firmed. Section 11. This ordinance is deolared to be one necessary for the immediate preservation of the publio peaoe, property, health and safety of the people of the City of Seward, Alaska. An emergency 18 hereby declared to exist, and this ordinanoe is hereby declared to be in fUll foree and effeot from and after its passage and approval. PASSED under suspension of the rules by the Common Council of the City of Seward, Alaska, and approved by the Mayor this ~ day of June, 1954. ~CL:ff'12J,j :Mayor ATTEST: J ~J ~~~ Ci ty Clerk 13.