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Home My WebLink About2022 Ordinance No. 0274854-6866-4347.1 BY AUTHORITY ORDINANCE NO. 27 COUNCIL BILL NO. 30 SERIES OF 2022 INTRODUCED BY COUNCIL MEMBER NUNNENKAMP AN ORDINANCE OF THE CITY OF ENGLEWOOD, ACTING BY AND THROUGH ITS WATER UTILITY ENTERPRISE, AMENDING ORDINANCE NO. 15, SERIES OF 2022, TO INCREASE THE MAXIMUM INTEREST RATE AUTHORIZED FOR A UNITED STATES ENVIRONMENTAL PROTECTION AGENCY LOAN TO FINANCE WATER CAPITAL IMPROVEMENTS; AND DECLARING AN EMERGENCY. WHEREAS, on March 21, 2022, the City Council of the City of Englewood approved Ordinance No. 15, Series of 2022 (“Ordinance No. 15”) on second and final reading; and WHEREAS, Ordinance No. 15 authorizes a loan from the United States Environmental Protection Agency for the purpose of financing water capital improvements as part of the City’s One Water Modernization Program – Water Utility System Project, which loan is to bear interest at a rate fixed on the loan closing date based upon the weighted-average life for the loan, and calculated using the published United States Treasury Bureau of Public Debt’s interest rate for State and Local Government Securities (the “SLGS Rate”) plus one basis point; and WHEREAS, since the first reading of Ordinance No. 15, which established a maximum rate for the loan based upon the published SLGS Rate then in effect plus approximately 75 additional basis points (0.75%), the applicable SLGS Rate has increased materially and is currently higher than the original authorized maximum rate due to several factors including but not limited to, record setting inflationary pressures, the war in Ukraine and an increase in the federal funds rate, and the City Council desires to increase the permitted maximum interest rate for the loan and the related capitalized interest amount in order to lock the interest costs to the City at the earliest possible date following the effective date of this Ordinance; and WHEREAS, the revenue bond evidencing the loan from the United States Environmental Protection Agency lender will be issued by the City, acting by and through its Water Utility Enterprise, and does not require voter approval and, as required by Section 41 of the Englewood City Charter, the urgency and need for adoption of this amending Ordinance on an emergency basis is set forth herein; and NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO, AS FOLLOWS: Section 1. Amendment of Section 3 of Ordinance No. 15. Section 3 of Ordinance No. 15, Series of 2022 is hereby amended to read as follows (new provisions in italics/underline, deleted provisions struck through): DocuSign Envelope ID: 5862B9CD-898C-48E0-8A0F-16B55E661A77 2 4854-6866-4347.1 Section 3. WIFIA Bond Details. The WIFIA Bond shall be in substantially the form set forth in Exhibit A to the WIFIA Loan Agreement with such changes thereto, not inconsistent herewith, as may be necessary or desirable and approved by the officials of the City executing the same (whose signatures thereon shall constitute conclusive evidence of such approval). The WIFIA Bond shall be in an aggregate principal amount not to exceed $46,500,000 $50,000,000 (which amount includes up to $8,083,510 $11,583,510 for capitalized interest) for a loan term maturing no later than August 1, 2062 and is otherwise in accordance with the WIFIA Loan Agreement. The WIFIA Bond shall bear interest at a maximum net effective interest rate not to exceed 2.95% 4.50% per annum, plus an additional 200 basis points upon the application of the “Default Rate” as provided in the WIFIA Loan Agreement. For a period not to exceed one year from the effective date of this Ordinance, the City Council hereby delegates to the Mayor of the City, or in the absence of the Mayor, the Mayor Pro Tem of the City, the right to determine the final principal of, interest rate on and loan term for, the WIFIA Bond within the parameters established above. Section 2. Reaffirmation of Ordinance No. 15. The terms and provisions of Ordinance No. 15, as amended in Section 1 of this amending Ordinance, are hereby reaffirmed and shall remain in full force and effect. Section 3. General Provisions Applicable to this Ordinance. The following general provisions and findings are applicable to the interpretation and application of this Ordinance: A. Severability. If any clause, sentence, paragraph, or part of this Ordinance or the application thereof to any person or circumstances shall for any reason be adjudged by a court of competent jurisdiction invalid, such judgment shall not affect, impair or invalidate the remainder of this Ordinance or its application to other persons or circumstances. B. Inconsistent Ordinances. All other Ordinances or portions thereof inconsistent or conflicting with this Ordinance or any portion hereof are hereby repealed to the extent of such inconsistency or conflict. C. Safety Clauses. The City Council hereby finds, determines, and declares that this Ordinance is promulgated under the general police power of the City of Englewood, that it is promulgated for the health, safety, and welfare of the public, and that this Ordinance is necessary for the preservation of health and safety and for the protection of public convenience and welfare. The City Council further determines that the Ordinance bears a rational relation to the proper legislative object sought to be obtained. D. Publication. Publication of this Ordinance may be in the City’s official newspaper, the City’s official website, or both. Publication shall be effective upon the first publication by either authorized method. E. Actions Authorized to Effectuate this Ordinance. The Mayor is hereby authorized and directed to execute all documents necessary to effectuate the approval authorized by this Ordinance, and the City Clerk is hereby authorized and directed to attest to such execution by the Mayor where necessary. In the absence of the Mayor, the Mayor Pro Tem is hereby authorized to DocuSign Envelope ID: 5862B9CD-898C-48E0-8A0F-16B55E661A77 3 4854-6866-4347.1 execute the above-referenced documents. The execution of any documents by said officials shall be conclusive evidence of the approval by the City of such documents in accordance with the terms thereof and this Ordinance. City staff is further authorized to take additional actions as may be necessary to implement the provisions of this Ordinance. Section 4. Emergency Ordinance and Effective Date. The City Council has been advised that further increases in the Federally established interest rates for State and Local Government Securities are anticipated which could result in material increases in the fixed interest rate and related costs previously authorized for the City’s One Water Modernization Program – Water Utility System Project. Therefore, for said reason, the City Council declares that this Ordinance is necessary for the immediate preservation of public property, health, peace, or safety and an emergency exists. This Ordinance shall take effect immediately upon second and final passage and be published within seven days thereof. Introduced, read in full, and passed unanimously by a quorum present on first reading on the 16th day of May, 2022. Published by Title as a Bill for an Ordinance in the City’s official newspaper on the 19th day of May, 2022. Published as a Bill for an Ordinance on the City’s official website beginning on the 18th day of May, 2022 for thirty (30) days. Read by Title and passed on final reading on the 23rd day of May, 2022. Published by Title in the City’s official newspaper as Ordinance No. 27, Series of 2022, on the 26th day of May, 2022. Published by title on the City’s official website beginning on the 25th day of May, 2022 for thirty (30) days. This Ordinance shall take effect thirty (30) days after publication following final passage. Othoniel Sierra, Mayor ATTEST: Stephanie Carlile, City Clerk DocuSign Envelope ID: 5862B9CD-898C-48E0-8A0F-16B55E661A77 4 4854-6866-4347.1 I, Stephanie Carlile, City Clerk of the City of Englewood, Colorado, hereby certify that the above and foregoing is a true copy of the Ordinance passed on final reading and published by Title as Ordinance No. 27, Series of 2022. Stephanie Carlile DocuSign Envelope ID: 5862B9CD-898C-48E0-8A0F-16B55E661A77