HomeMy WebLinkAbout2012 Ordinance No. 022ORDfN ANC E NO.t,-7,,..
SER TES OF 20 12
BY AIJTH ORJ TY
COVNC TL BfLL NO. 2 3
INTRODU C ED BY CO UN CIL
MEMBE R \''OO DW AR D
AN ORD INANCE O F THE CITY OF ENG LEW OO D, AC TIN G 13Y AND T HR OUG H
ITS STO RM WATE R ENT ERPRI SE. AUT HORIZ IN G THE ISSUANC E OF STO RM
WATE R H ff ERl'RJ SE RE VEN UE REH.J);D IN G 130 ND S, SE RlE S 20 11 , TO
REf-UN D OUTSTANDIN G BOI\D S OF TJIE CIT Y AT A i.OWF.R INT l-'RF.S T RATF.;
PROVlD [!o;G TH E !'ORM or Tl IE BONDS AN D OTHER DET M LS (N
CONNECT IO N THERE WITH; AP PR OVIN G DOCU MEN T S RELAT ING TO T HE
BON DS AN D DE CLARIN G i\N EMERGENCY .
\VH ERI'.-\S, the C11y of Eng lewoo d, Colorado is a muni cipal corporn t10 11 du ly organ iz ed and o pera 11 ng
as a ho me ru le cit )' under An i lo X X of the Co nsti t ut ion of the St at e o f Co lo ra do and the Chan cr of the
City (wll ess othe ~11se md;c·· cd , ca pttn l1zed temlS usOO in this preamble s}J:l ll have the meanin gs set fo nh
tn Section I oi th is Ordm ancc); ond
9 b iii
WHERE AS , as co difi ed in Tit le 12. Chapter 5 of the Municipal Co de, th e Cit y has establi she d its Sto nn
Wat er Ent erpri se; m:d
\:Vl-rE RE.AS , the-Stonn \V mer Enterp ri !-e co nsti tutes a .. wa te r activity en terprise•· wi thin th e meanin g of
th e Title 37 , Art icle 45.1. C.R.S , and a gove rn mc11t owned busi ness which is au th ori zed to iss ue it s own
re\'en ui: bo nd s and which rec eives und er 10% of mmu al rc vcr.uc in p;rant s fr om all Colont do state and lncnl
gove rnme nt s combined ; and
WH EREA S, pur suant to Scc:i on 105 of tl,c Cl:an er th e City ma y iss ue rc,·cnu e bond s as prov ided fo r
muni cipalit ie s by St at e sta tute a:id revenu e bond s for a :,to m, water ent erpr ise are penn itt cd under Tit le 3 1.
Arti cle 35, Pan 4. C.R.S. an d T itle 37. Art icle 4 5.1, C.R.S.; ao d
\VH E:RE AS. pursuant 10 .;;cc:io n 106 of th e ·1..a n t:r ; t!::;· Cit y may j:,~ut: n.:fu11d i.11 g bond s by ordinan ce,
wnhou\ an elec tio n, fo r th.: purpose o'. pay in g ou ts tan ding bo nds v f the Cit y: nnci
WI-IERE /\S, pursua nt to .'\mcle X. Sec tion 20 of th e State Co nsti tu tion (T ABOR) refinan cin g handed
deOt :.1l lower mterest r:tt cs does not n:q uir e vot er .ip prov :i l in :,d van ce-under the lem:s .1 nd pmv isinn" of
TABOR ; and
WHERE AS, th e City, act mg U)' and throu gh its Stom1 Wat er Ent erp rise, previously iss ued its "S to m1
Waler Enterpri se Reve nue Ha nds, Series 200 I" of whic h $1 ,03 0,0 00 in ag ,rcga te pn nci pal ,uno "nt arc
curr ent ly out st anding and bea r imercst at ra tes bet wee n 4.9 0% and 5.50 % p\!r nrnrn m: an d
WHER EAS. the Ser ies 200 1 Bond s arc subject to redempuon prio r to ma turity an d the opti on o l t!1 e
Cuy. in wh ole"' 111 pa n . on Decem ber I.20 11 an d on an y date thercafi cr upon pa)m ent of par plus
:ic::ru ed ime r~st l O t:,e redemp ti on date , w11 ho ut redemption prem..i um ; and
Wl·IERE /\S, the pr:ncip al nf end i11 1crcst on the Series 200 1 ll ond s are payable at !J MB Bank. 11 .a . (a;
c;,u·ci'"~'-M 111 in1cr~s1 10 Am:.·rica n N:rio11:\\ 8 :i nk ), i1; Dr-n vcr, Co lor~do , or ir -. sncc 1•..:,..:,n •, :ii. p,1 ymg :i1 •,r 111 .
:11HI
\VI I ERE:\S, I hc Stifel , Nicolnu s & Compmty , l nco rpr,ra Icd 1 of Dcn vt·r , Colorndo, Im" pres ent(;(! :1
111 u11t•sal 1u 1hc Cit y to n.:fu ncl the St·rics 2001 0 1111ds. 0 11 :: c 111Tc 111 h;1 sis 1l1rt1 ugl 1 tl 1c 1~s ua111.:c o f S1u11 11
W;11cr En1crp risc Reve nue ll cfu ndi ng 13011d s, Seri es :rn 12 . ;md tht Cm11 .cil h:-is det~nn i1\Cd tha 1 the
ncgo 11a 1cd sale n l 1he 13onc1 s to s:ud com pa ny 1s 10 1hc hc.,1 a<l v:111 1.igc of !he C11 y: and
WM Ea l!AS, ncl pr0cec<l s derive d f1 u 1n the s:1 \e or thl! IJ 01 1c.ls , to get her wit h othc1 lc gH lly :1v:1i lahl c fu n<l s
o f the Ci ty cxpcc h:d to co mpn sc mo nc vs w 11hm ihe rese rve :1cc 0un\ sccun ng the pn ymcn 1 nf 1h c Sl'ncs
200 I Bonds, wi ll be imm edia tely ap plied I<> 1hc pa)one11 1 o f the Se ries 20 0 I [)nn ds o r t!tc Ca ll Dale u,
1rrevoc nh ly depos i1 c:d w ith th e D:mk nnd pL,cr d int o :, <:pec b l funci :ind rnisl ,1cr.ou nt rm rh e p11rpni.c onl y
o f p:i yin g lhc pn nc ipa l of ~md int erest due .~nd pn y;\blc o n the Seri es 200 l IJ ond s on th e C:i.11 Dru e: :mrJ
WI IERE AS, the C ity !ms rece iv ed m1J there arc ,wJ ilnblc to the members of the-Coun d l. fonns o fth~
1>1ci1111i 11ary O fficia l Stilt crnc ,11 . !li e.: rl o u<l Pu n.:ha :,;c Ag11"::c lll t.:11l. til e E sc ru,\• Ag1ct.:11 1c 11t uu.l !la; P:iy.11g
Agc:111 /\g1 c.:c ment; and
Vi MERE AS . the Co u nci l de~ircs IC\ :iu thon zc lhc 1ss 11 11 ncc and s:ilc of th e Ho nds :1110, as prov1d cd m
Ti1 \e 11. Art ic h:: 57. Part 2, C .R S .. del egate nut horny :o the Snl c Dcl cgal e tO make cc r .ain c'.cli.m nin:ui on s
n:,;:i rd 11 1i; 1 he Dond s to he se t fo rt h in the Sa le Cert 1fi ca tc in accordcmcc with the prov isions o f th is
Ord in.me t.:.
NOW . T H EIUi FO RE , B E IT QRt)i\lN ED rJY T H E IT Y CO UNCIL O F ·1 HE C ITY OF
EN G LEWOO D, COI.OK/\DO, /\S FOLLOWS :
Secti on 1. De fin iti o ns . Th~ foll o wing lt:rms shall lrn vc the fo ll o ·A1 in g mcr1111 ngs as ust:d in this
Ord ,11 :mce:
··!Jank" mc.:a n.s UMt; !:S an k. n.a , a n:itional ban k mg as:.ociat1 on dul y or g,mi:tcd and ex 1st mg under
the laws of the Uni1cc.J St att.:.s o f t\rncr ic:i whi ch ha s fu ll and ~omp lcte tm st powers ;,n d is a qual1tied
msti tutiun undt.:r tht.:. Pub li c De posit Protection Act of Lhe State .
·· l/o,u/ A ccou111 " means a specia l acco unt o r th e Cit y design ated as th e··. to nn Water EP tc qmse
)0 1?. H.,nrl Acco unt ," c rca1ecl hy 1h 1i. Ordinil ncc rn r th e purp ,1se of payi ng th e pri nci pa l of. pre mi um if any .
.i nd 1mcrest o n the Bonds, inc!ud 111g th e l n1cn.:~t S ub:t ccou nt and the Pnnc1p:i l Suba cco un t
"llond Counsel" means (a) tl'-of 1h c cl.i tc o f issuan ce o f th e Bond ~, Kutnk ll ck LLP. and (bJ ns o f
,m y olht:r d a ll'., Kulak Ru1.:1 LL P u1 ~ui.:h •J lhc1 a ll u1m:y~ !-.d cctt.:J by tl u.: Ci ty wi~li 11 ,1 tirni.1\l y 1ccog111 7xd
~x pc:-t isc in the iss uance of nnrn ici pa l bn r1.l s.
"/lond Ob liga ti1111·· means, :t, o r any date, the prm ci p3l amo11 nt o r 1he Uond s Out st?.nding ns o f
such date
•· Bond Purchase Agrecmcnr" mea ns lhe Bon d Purchase Agreement , pursuan1 to wl uc h !h e City 1s 10
agree to se ll and th e-Und:..·rw ntl"r is to agree to pnrchas(' 1he n o ncl s at th e pri ces and on the tc n r.s set fnn h
i.hcrcin.
'
18 o mls'' amt '1S1;, ies 2012 /Jonds" mc.1 ns the Bonds aut horized by the Sc.:tion hereo f tit led
''A ull1 ori zn uo n a.ml P urp ose o f Bond s ."
"81m11 c.<s Day" means any day other toai , (a) a Saturday or Sund ay or (b) a cl oy on wluch bank:ng
mstirnt ions in the State JfC au thorized or ;,•bhgated by law or ex cr utivc: order 10 be c lmcd fo r bu sine ss.
·'Call Date" means the date or dales on wltich th e Series 20 I Bond s shall be called for o p:,o nal
pn r redemption a s estabhs hcd 1n the ~al e Cert1 fo;atc .
"Cap 111;/ Imp .. 1\•err enrs·· mea ns the acq ui siti on of land, cw,cmc nt s, foci lit,c s ancl equ ipment (othe r
than un.l i11 .u y I epa i1s ,11 1J r.:v1a.:-e 111en1s), mv l the constru c ti on or rec onstruction o f improve ment s ,
be uenncms and extc ns v11 s. for me by 0r in con nec::on with 1hc Storm \Yater Sys tem whir.h , under
Generall y Accepted Accu 1Jmin~ Pri11~·1p ,t:s ior gove rn mc 111a l uni ts m~ prescribed by th e Govemmc.::mal
Accou nt Stand ards Board. arc r :r•r t ~1, c hargeJb\c as ca pi tal ite ms.
··cerrtflcd r .. 1,!1 c •lccou,uan ,· · ,nc-c1 n:; an indep en dent ceni fi cd pu bli c ac co untant within the
mca nir:g of§ 12-2-: · '· , .... K. ~ . .! uJ ;:mv a.m enCment th ereto, li ce nse d 10 pra c tice in th e Stale of C olorac o.
c.Cil<l rt cr·· means th e home nilc Clmrt cr o f the City .
'·C11y " mean s the City o f En glew ood, Co lorado, act in g by and through tts Stonn Water En1crpri sc .
·'Code'' mean s th e lnlema l Revenue Code of 1986, as a mended . Each referen ce t0 a sec tion o f the
Code he rein shall be deemed to inclu de the Unucd States T:ca slll)' Rcgu lmium, pru pt\s cLI 01 i 11 i:ffct.:t
thereu nder a nd app lic able to th e Bonds or the os c of proccds thereof, unless the :ontexl dearly requires
oth erw ise
"Combi .,.-; .t },-ximll m Annun l Pri ncipal nnd /merest Requirements" mea ns, with respect to th e
Bonds or an issue of i'an ty Lien Bo nds for which such 1cm1 1s used. an amount equal to th e ma x imum
amo un t rcq_Jin:d to be paid in any sin gle curren t or future calend a r yea r as th e pri nc ipal of (includi ng any
rnand a:ory s inki ng fund requi rem ent s) and intcrcSl on Outstanding Bonds or Par it y Lie n Bonds ,
rc:~pc:cli vt:l y, c."<du<l i11g any such bund:, wh..ich lm vt: been def cased pursuam to the terr.i s of the aulhori zi ng
document s. Fo r purpos ·s o f ca lcul ulin g the Combmed Max imum Annu al Pn nc ipa l and Int eres t
Requirements i:1 any ~ .• ~~ndar year of final man1ri ty or the Bonds or an issue of Pari ty Lien Bond s,
respecti vel y, th ere si 1i' 1,c subtra cted fr om the final pr inc ipal pa yment fo r sa id bo nds any cash o~· ihc
prescn: va lue of an y u1 ves tme nls de po sit ed in a reserve fu nd or ac couut !!Sta bli shcd pursuant to th e
a uthon zmg documents wlu ch are proper ly nll ocnble to said bo nd s.
''Co1m ci f' c1caus th e Cu:,• Co un cil of th e City .
''County'' mea ns Ar.:pahoc Co unt y, Color~do .
··c N S.'' me:m ~; th e Cc lo~ndo Rl!v1scd Sta tute s, a i; amended a 11d supp lemented as of the dm e hereof.
"Dated Dme" mcau s the on gma l dat ed da le !or th e Bonds as establ1S hc<l 111 the Sale Cc m fi ca te .
•·n efcn sa11 ce Sec11ri1i es" mean s b1ll s. cen ifi catc s o f in debtcd nc s.,, notes. bo nds or si mil ar scc u1i11 cs
wh ich arc direct. non call able obligat ions o f the U:mcd S1a1cs of f\1111.:1 ll:i.t 0 1 \\ hid1 d i e fu lly aml
un conditi ona ll y guarant eed as 10 1hc 1imcly pa yment ofprrn cip d and 1111cre s: by th e Uni ted States of
Ameri ca, to th e ex tent suc h 1i1 vestme n1 s are Pl'nnitt ed In vestment s.
''DTC ' mc ;;ns Th e Depo.rnory Tru st Co mp :rny , New York . New York , and it s s uc cesso rs in int crcsl
and as signs.
"/JTC 13 /rm kt!I Lt!t1er of Rt'f ll'('tt:nta tirms'' mctln s the leuer nf represent ati o ns fr om lhc Ci1 y 10 DTC
to 111cl u .:~ OTC 10 ac t :l s s cc u rit1 cs deposit ory for the Bonds
"[1wbl111 ).!, L,m :·(' 111 ca:1s 1h c Char1 cr; T itl e 12, (;lrn p:cr 5 of th e Mu11ic 1p:II CNk ; T itle 37. An il'i l'
; ; I , r ·.1cs ., Ti tle.: 3 1. Ai ·.u.:lc.: 35, Part 4, .lt S , ,in d T itl e 111 Ar.1c lc 5 7, Pm , 2 . C.ll.S .
"l:.scmw Ac:cmm t'' mea ns the acco unt, 1f ncccss my, cs rn bll shccl anci d t.:s igna tcd a:,. ~ud 1i111 hc
~cc1io 11 hereof cm 1tl cd ··P:-i yi n cnt o r l{tlumlcd Uoncls" to l>l! m:i,·lt:1111 cd by :he Ba nk in acco rdnn cc v,1 it h th ..:
Es crow A.i..:rcc mcnt and the pro vis ions hereo f.
'F..•w r, 1• 1ir1n·111 c 11(' nu.:.ins 1hc Esc rcw1 .'\grccnu.n• el ate d .rs of1 hc Dnted Dnt c. betwe en lllc C11y
:u1 d th e B:m k.
'' Ew·m ,·J/ Dc(m ,lt .. mco nz ~m y of the cv~nt s speci fie d in 1hc Sec tio n hereo f Ii tied ''f::\'c:ni s n f
De f;1ult."
·F,sm 1 t ·ea r" means the 12 111011 1hs comnu.:m:in g J;111 u.11y I of ;111y yi.::11 tl11 d end ing Dec ember J I o f
.,111 t :car .
'•C .. o.,·,\· Rl•ven11 c·· rm:n ns a ll 1:1co111c :111cl 1cvc m1t.:s d irec:ly or i:l d1rcct ly d eri ved hy the C11y frrll' the
opcra tic-11 and use o f the Sro n n \\'atc r Ent er pn .•C, rn clud ing w1t ho u1 Ii mi tali o n, an y r<1t cs, fees and ch :ugcs
fnr 1)11: ..,t:rvices fo m1 shcd by. or th e cse of. the Storm W:ll cr Ent erp ri se, and all mcomc .1t :r ihu t:i hlc to any
p:1~1 C11 fu lll rc dis pm.it io ns of pro pert y nr ri ch1 s nr rcla 1cd cont r:ict . sett lements or Judgme n1 s he ld e r
o btain ccl i!l co nn cc:10 1-: \\,it h 1he Sto rm Wntcr E111 cq :ri !-e or 11s oper:t t 1<rn s, :m rl im:lud ing in vest ment in::o ,nc
acc ruing fro m m0ncys hel d to the crt:ch: of the Storm Wntcr Ent erpri se Fund ; provided how~VC'r. th.:t t there
:-ha ll he exc luded fr om Gross Revenu e 11 11 y 1110 :1cy~ ,o:-ro wcd mill ma:c:I fo r pro vid ;1:,-: Ca pit:--11
lmproven11.:111s; an y 1110 11c.::y and M:c u ri:ics, and in vcs:rn .:11 1 iPcOml· th erefro m, in .an y rl'f.1nd ing fund, escro w
ncco un t m surnln :-a:count pledg ed 10 the pa ym~1 11 v L.11 11 Uu mlso1 01~1er o bl igati ons; ,tn d any nw ncys
rccc 1vcd as gra nts or npprop rm t1 ons fro m the i:11 cd St nt:::s. the Srn 1c ofColura <l u l 1;· ul1 11.:1 so rn ccs, the u!'le
of whi ch is limit ed or :-estri ctcd by th e gra nter or clonor to the prov:s ion of Cap ital lm pro•;cm cnt s o r for
o the r p urpos es rc.;ulti ng 1n th e genera l una va ilabilit y th erecf, ex cept to the ~xtc nt any suc h moneys shall be
rcce1vc<l as 1>av mcll!s fo r the use o f' the Storm \ViJ tc:-Syst e m, servic es rcndcn:d th ereb y, th e ava ilabili ty o f
:rn y -.uc h i.e rvici: or the di s pos al o f any commod iti es the refrom.
"/,H e.r est Pay men t Da te" me:1 11s eac h Ju ne I an d n ecr mh cr 1, C1lm111t:nci ng Dec emb er l.20 12, or
.'mc h 0 1l 11.:r d:!l c:s as cs tnbl i!i hcct in the S,1\c Cc n ific:-i tc for payr:,c1u o f interes t o n the Bonds
··1 ,11 en',\"I S11 br.c c01 m1 " mea ns ;1 s1ih<1t.:l.:uu11 t o f the B0 11cl A ccount rc a ifi n nccl h) the prcw i;;;ions
'1c "co t tor the p urpose o f p,1y111g Ilic i11 lcres 1 on the li nnds .
"M111 1ic:i11u/ Cotlu'· means th e City of Englew od tv1u111 c1p1.d Co dt:, us am ended.
"Nl't l?et•enue" me.m s tLc Gross l{cv cnue afte dcd uc1 111 ~ the Op crn uo n and Mai ntena nce
Ex pc:n!-cs
··O!Ji cw/ Sw ti:mcm ·· means the fin~,I Offic 1:i ! St:u cmcn1 rc la un g to 1hr Bonds
"Opera t ion w ul A1ui m e,wni:e E.1.pct1 .\·e:(' me.:i ns a ll reasona b le and nccessnry c ur.c nt ex pen se s of
1hc C it y, pa id o r acc rued. fo r o pera 1in g, mamia ining am! n::pi.1 i1i11 g the Stonn Wat er Sys tem. in c lu d in g
wi tho ut li nutn uon lega l and overh ead exp e1!~cs of the C it v d irec1ly relate d to tl u.: ad mi 11..is:rntio11 uf tla e
St orm \Va lt.:J' [ulc:rµrisc. in surance premiums , audit s, chu rgcs of depository b1111k s an d paying age nt~,
pmfe ss 1ona l services. sa laries ai:d administ rative expe nses , la bo r and the cost of materia ls and s upp lies fo r
cun ·ent operati on; provided howe.ver, lhtll the-re sha ll be excl uded from Openmnn Hil d •1airt cnam:e
t>.;,enst:s any allowance fo r dep:-ec iaucm. pa '"lCnts in l1tu of Laxe s or franch ise fees, egal li ab ilili cs not
hased on contract. ~,;pcnscs incurred in connu...uon wi th Capital l.m;.novcmcnts. payme nt s Cue in
co nn ection with any bonds or .>thi:r obligati ons, an d charges for the ac'-"wmila 11on 0f rescrv::s.
''Ordimm ce'' mean s th is Ord inance , inc ludi ng any mncndmc nt s or .·1pp lcrn er.ts here to.
-101 ,rswmling'' mean ·, as o f any date, a ll Bonds issued and delivcn.::d l.v the City, excepl the
fol lowing :
(a) an y Oon d cam.:cl\cd by the Cit y o r the Pnying :'\gt!11 1 or 0 1hc1 w i se on t'.1C' C'n y's
behalf. at or befo re suclt da te;
(h) any Dond held by or 011 be ha lf of the City;
(cl any Bo:1d fo r the pa yme nt or the redempt ion of \\ll1i...1i moneys or Defoasrm cc
Securities s uffi c ient to meet all o f the payment :-cq uircmcnt s of the princ ipal of,
prcnuu m. if any, t nd in1e rcs1 o n such Bond to the date of matu rity or pn or
redem p:i clll tl tt~reof, sha:I ha,c theretofore been deposited in !ru s t fo r such
purpose m a<.:cord ancc wi th the Sectio n hereof titled ··Dcfeasa ncc··; and
(J) any lost, apparently des troyed, or wro ngfu ll y 1,1ken l3 ond in li eu of or in
s ubs titu ti on fo r wh ich another bo nd or other securit y shall have been exect:tcd
a;nd deliver~d .
·'Owner'' means the Person or Persons in who se name or names a Bor.d is re gistered on the
regi stration books maintai ned by the Pa ying Agent purs uanl hereto.
"Parity Lien Bonds'' meaus one or more series of addi1ional bonds, notes , inte rim secc-:•ics or
,:,t h ·r obl igations issued by 1ile City pursuan l to the Sect ion hereC'f ent itl ed "Add iti ona l Bor.ds," ha ving a
lien un the ~et Rc\"cnue wluch is o n a pari ty with tb e li en of th e Bonds.
··['anry J<escrve Amoun t'' means. a~ of any date on wh ich it: 'c•.:/~.,ed with respect to any bsuc
of Panty Lien B011ds . ,he least of (a ) 10!, of the pnnc,pa l amount of Parity Lien Bond s. (b) the
mux.i 111u111 ;_u mu;i l Ucbt ~c ,, ii.;c III bll;-' 1.:t1k.11U;tr y a1 011 snid Pilrit y Lien I.J onds or (c) I :!5''/i, of the :wcrngc
arnnrnl deb t scn icc on said P;uit y Lien Ru:1d s.
··Pay11 1J' .lgimt" mean s the B 1rnk :in d it s S'.lc cc sso rs ir. intcrl!:i t or assiw 1s approved hy th e C1ty .
"Paying Agent Agreement'' mean s an agrecme 111 between !he Ci 1y and the Pa yin g Agent concerning
the duues and ob liga1 ions of the Pa yin g Agen t ,\ith resp ect lo the Bond s .
.. Permitrrd !n ve.m ,ww s" means any in ve£:tmcn l in which fund s of 1he Cir y mJy be in vc s1e d under
•' .~ Chan c.:r and the laws or 1he Smtc :11 the ti me of such inve st ment.
.;Person" means a corporn tion. fim1, other body corp oratt!, partnershi p. as soc 1at1on o r md1v 1clual
an d r1 lso inc lu tlcs mi executor, adminis lrnt or, tru ste e, rec eive r or mher rep rese ntative appointed uccordin g
to Jaw.
"t'1·c im,inary Officwl S1awmc:11r'' r.1eans the Prelimina ry Oflic1a l Srn temc n: p1cpa rcd in conm:c1,r,n
\\ 1th the s;1 le an rl 1,s11;1nce of !he Bunds.
"I 1•·i11r.i;u1! Payment Da te" mea ns Uc :em ber I . or c.uch other da te or d:lt c, f ~·ad1 year r1<.
c,1a bli~hcd 111 th e Sa le Ce rtifi cate fo r pn ymcm ofpr111 c1pn l of the Oonds .
.. I '1 ·i 11 c 1:,,af .\11/1(1 1;c:1111 11t" mcall "i a suh,1<:·cou1u of th; H<.111d 1\ct,;ou11 t 1ci1ffi 1111cd b/ tl11; pu1 v1 si.11i;
lu.:rcuf h•r ih c pwpost· of paymg the princi pn l of and prem iu m. if ;my, on the B1>1 1Lk
"Pro /fou1 Por:im1" mc"ns w hen used w11h res p1 •c1 hi a rcqu irc<l ::rcd11 10 lh~ Pn11 c1p;il S11bm.:c 1,u nt
nr the h tc rc ... 1 Suhac co unt, 1he dollnr amount c:t:nvcd by d1\·1ding ti1e am ount o:' µnnt 1pal 0r 1mcrc~1 H1
..:o :nc tlu c:: on 1hc next 111 ,11c1p.il or 1111cr ·s t p:1~·1nc:11 d:i ~e nv the 1:u mher 11f ·111,11t hl" cred its 11.:q u:a·<l III hr
m:,,lc p nnr 10 -.1 1r.h p:1}'11 c:11 1 cl nH·
"Nt:t..o rd l )o:t:" mc:m s, i r the Intere st P,1y111cn t Date is on the first da y o f the mnn lh. 1he lilt l·c 111 h
d ,1 y uf the rn o11 1h 11nmcdiatcly preceding 1hc mo11t h (wht1h..:r or nol such day i:. ~ Bl s in e~•: l>ay) m w hi ch
"lu.:h h1 1c..:1\:!:-t PJy111 c11 1 D~te OCCl ll S .ind , if th e lnl crcst P ,1y mc11 1 L>a tc 1s on th e fi ftcc 11h day o f the mont h,
lht.: f-rst day n r the nl('nth (w he1he1 cir 111 11 sud1 da y 1:-. ,1 Bw,i111:!)!i Day) iu which sm:t , l.111 .. 1cs1 P.1yment
D 11 1C" 111.:t:ur~.
·'Re/1111 ,led Bond Ordi11m1 l', ... means the orclm :11 11.:c nf th e Citv auth, riz in g the:: 1:;s uan L:c ti l 1hr :Sen cs
200 1 IJpnds .
"Rr·f,mtl,·il llo 11 d R1 •11 1,in·m c•11t \'·· means th,.; pr inc:1 rml :rd 1111n,.;s1 cha: in C()ll!l cc :io11 wnh thc Se nl''>
200 I rJ1u 1d ~ unti l pa,<l :-mJ c an ccllt.:d in :1cc.-c 1rd an :e wil h 1ln·ir tt"1:n:-. or cal It'd fo r rcdcm p11nn, pa id and
c ruu::;l\cd C'lll the C:i ll D :1tc .
''RcfimJ, ,I Bu111b· /'11yi11 g A,g1•,u" 111cnns L1MIJ Oi:nk . 1?.n. (as ~1cccs sl"r in i111 crcst lu Amcricnr
Nat ion.11 B t1 nk ). in D enver, Colorado, as pi!ywg .1g c:11l f,,1 the; Sc1 ics 200 I 8fH1d s, o r nny s u.:ccssor tht:.rllO
"Rejimcli11g /110Jl!L"t'' nu:am the adva nce rcfunch ng ot the Scncs :Wa l Bothls and 1hc paymcm of the
cosLs of iss1.:ance of the Bonds
·• Uc,11 11red Reser ve Ammmr" mcm ;s, as of Hit}' J atc on which it is calcu lated, th e least oJ la) I O~o o f
the prim:i p ril amount o f th e Ou1 ,1:mciing Hemet ~, (h) 1hc rmr~imum annu:-il deb t s~rvi cc in any calcnda:-yea r
01: 1hc Ou1s1:mdi11g Bon ds o r (c) 125 % of th e average am1t:a l dch1 sc.-rvi ce 0 11 lhe Out(;fanrling l\nn,t,
•• Rc:.'"i:n t: .·k 1..:<•111:r'' m .:;111s a spec ial :u.:l:ou nt ,,f th e Ci ty dcs ignn1 cd as th e '"S to rm \V~u cr Cntc r:>r i-.c
2(• 12 Rc.:st:rvc ,\cl'.ol111 1," (.:I ~.11r.:d l:y thi :i. Ord111:..i ncc..: ftll 1hc pu , po se o f pay mg, if ncccss .i ry . th e rn11c1 pitl
ot , pr em ium 1(.1ny , and 1111e 1cs 1 rn, the Bonds .
··,)'u h• Cer11(i ca1,•" me ms the cert ifi cate c;xt:cut ed by th(' Sale lJeleg :il t: und er the auth orit y
rl elc!.!.att:tl pursu.1 11 1 10 tin !-> h 1 in:rncc , includ ing bllt not lim ited to th e Scc1io11s h":n.:11f lil ied ·•8,oml
Oet 2i ls .·· ·'Rr.:dcmp li<:n of BL11ds Pr i r to M:nuri iy•· :i nd "Ar prowtl of Rdn.ted D,1cti mcnt s''.
·'Sale D 'e gn 1e·· mc~ns the Di rector of Finance :\nd Actmitll•:rraiivl" Srrv1cf'~ or 1hc f'i 1y nr . 1n 1hc
cvcnl such per5c n 1s unav:i.ila ble, th e City Ma:,ager .
"Series 2001 Bmull" 111 ct111s ;he Slunn \Vale r Enterprise: Re\'Cnue Donds, Seri e., 200 1. wh i has of
th e da le o f this Ord ir1.1nce are out srnndi ng in the prin c ipal am ou lll of$: ,0.,0.000 .
''State'' 111 c3 11 s the State of Co lorado .
"Storm Wmer Em erprisc'' mean s the Stom1 Wntc r Enterp:ise as establ:shcd hy Cit ) O rdinance \Jo .
20, Series 1993, as said ord in ance mny be amended fr om time 10 timr:.
"Storm If/m er Emerp rilc Ftmd" mean : the "to rn, Dnunage Fc.ud of the C ;ty whi ch uccouu ts fo 1 the
fu1an .:rnl ac tivit y o f th,; Slorm Water Enterprise
··srorn, Wm cr Sys tem" means all of Ut e C it y's stonu watc~ fac iliti es includm g with ou t limitnt1 u u
i111crc st!; 111 real :md 1>ersonal propeny now ow nt. 1 or he rea ft er acq uired whether St1l1 a11:d wi1h.in or wi1h0111
1hc Ci1y bound:,rics and a ll pr ese nt or future imp roveme:1ts, extensions, ertlargcment s , bc:ncm1 c n1 s ,
n:pl:.i cemc nts and add 1u on s thereto
H!J11b ord111arc Lien Bonds" 1:1ea ns one or more series of addi ti onal bonds, note s, interim scc unt ics
or other ob ll g;1uons iss ut:d by the City pursuan l lu lhc Sc...:t iu 11 ltt.:l t;O f entitled ":1.dd1ti onn l IJ onds," h:wmg
a lici: on ~he Ne t Reven ue whic h is subordi nate o r Jtm1or to the li en of th e Bonds.
"Tax /.,etU.T of instruction s" mcnn s the Tax f "111•:-of ln stnict1011 s , elated th e date on wl11ch the::
Bonds arc origin ally iss ued and delivered to the C i:y by 13o nd Counsel, ns s uc h ins1111c1i on s may bt:
5upc rs cdc:d or amended 111 :.icco rdance with their 1cm1s.
"Undc11vr11er" means S1ifc l, Nicolaus & Com pa ny, In corporated, of Denver, o lurad o .
Scc.tinn 2 Auf h o ri1atin11 and Purpose of Bonds. Pur~u;1111 10 :md in accord ance with th e Er.ab lm g
Lnws, the C ity hereby authorize s, and dire cts that there sha ll be iss ued, th e "S1om1 Water
Enterprise Re\•enue Refunding Bonds, St::1ics 20 I 2" fur Lilt: puq,o~i,: of p1 ov1d11 1g funds fo r the
Refunding Proiect. The caption for th e Bond s also sh all in clude ''Series 20 I 2 Uond s" o r "Senes
20 13 Bonds'' depending on th e actua l date o f iss uanc~ oft he Bonds
Secti or. 3. Bond Details .
(a) Registered Form, De110mina1io11s , Dated Dare and Numhrrin,; T he 13 or.ds
shall be iss ued in fully registered fonn, shall be dat ed as of th e Dated Date, and shall be
rc&'lstc rt:d in Lhc names of th e Persons 1dc n11fi cct 111 the rcg1 str :1t 10 11 book~ 11111111 1:uncd by the
Pay in, Agent pursuant hcrclo The Ro ,HI !-sh:111 he 1sc.ue<i 111 rle nnnunnti on s of S5 , 00 in
prin cipnl amou nt or any in tegra l multip le thereof. The Bond s shall be co11st:cu11 vcly num bered.
beginnin g with 1h c number one . preceded by the letter "R."
(b) Jl.1a turity Dates. Princi'pal Amflu11ts u,rd /merest Rmcs. The.: Hu·• Is ha ll mature
... n th e Pnncipiil Payment Date of the years and in th e.: µ1inc.:ipJ\ amuuu~. ;111d :-1 .II bc;u 1111 er cs1 at
the rate~ per an num (culculatcd b3 scd on.\ 360 -cl a y year a ftwcl vc 30-clay 11101:lli ~) set f1lrlh in '.he
Sale Ccn ifi ca tc.
(c) .-1ccruul and Dates of Paynu•m of /uta,•.,·t. lnterest on !h r.! Homl s sha ll al'Crut ut
the rates se t forth in th e Sale Cert ifi cate from the later of th e Dated D,tc or the la test ~tlcrcst
Pa yment Dale (or in th e cn5C of defaulted intcrc.;t, the lutC!.I ,late) 10 whi ch 1111 crcs1 ha s be en pa id
tn full and shall be pa yab le on ea ch Int erest Pa)1n e111 Date
(d) Dclcgatior1 for Sales Certificate. The Cou ncil hercb)' delega tes 10 th e Sal e
De legate for a period of one yea r from th e date of adop11 on of' tlus O1 clina ncc th e f'o l\ow,ng
(which shall be set fo rth tn the Sale Cc 11i lic.11 c fo r th e \:l a nd s).
(v ) 1h c l'nce at whic h the Bnn ds \1 ·1!1 he .;nk l pm :,;l1rnn 10 th<: l'l c111d Pu,r ha,l'
l\g1r ~•111,·n1:
{v i) ~he n:rn uni of pnnc1p~l llf th e l,1.\ll:lr. m:itu nrg Ill any p:u 11.:u l:11 v1.•,11 .111d
:he rc ,;;pect ivc in terest ra1cs borne hy ;he Bu nch ,
t v ii ) :ht.'. l.1 01:ds whi ch may h e re<' ¥-c mt·tl at 11·.e opti on 0 f the I fo;tr 11.:1. 1lu: da1.._...,
u po n which s uch opllonal rcd cm pt 1l,n m:iy occ ur . anti 1l u-Pfl Cl'S at wt .1ch
such Bon ds n1:iv he np t ion:!lly n·drcmcd.
(vi ii ) 1h1• prin eipnl anmu nl ~. 1f 1n:,,. of Uirncl ~ s 11hJ..:c1 10 mamla t(H'\ ', nh1 11:i
f1111d rcd c:mpt i,1 11 ar.d th t> ),(·:1r<: in wn1 r h ..;1w !t H111 ul...: will lw ~ul)_JCl'.I 10
!:u ch rcd cmr t11 1n: :i 11d
(ix) the Call D:,t e
(c) Safr Pu r mm!ter.,·. The ;t\1'1tonty dclcg:Hcd H1 the Sa le Dcl c •all." by 1111:-, St'!,;'H11 1
,ha ll he su b,iect to the fol1 0wing pan11n c1crs :
(i) t he aggrcg atl.! prin c.po\ arn o .m: o f th t: Houd s ;h:\ll no t r.:xcc t·d
$1,1 00 011 0 ,
(ii ) lhc tim 1I mu tur it y o f 1he Ori ncir. shal l :1c no l:llc r 1h:111 Dc1.c mhc 1 '\I. :!02 1;
(i i i) tht! net c ITc ct ivc i mcn.:s1 rnt c 011 th, 13uud~ !')li,.11 nu l c :-.c l .:,I 1.1S"o .. ind
(i v) 1he present value savings as a pcrcc:ll ~gc ol 1hc nggn:~al v pn nc1:~:t1
amo 'J III o f the Ser.es 200 1 Bo:id'i shall be at lcH ~1 1h r~c pc1cc11 l 0 11 0)
com;m tcd ba sed up o n th e arbiir:.1}!.c yield fo r sud1 ~cries 01 linnth, If! 11.e
dme o r ,tc livcry of the Bonds. :.1s~t:n111 1i; sc n11 ~an11 u:i l crn np1111n,l 11 1~1
(I) 1\fa ,i111.:r m u/ Form nf 1-'itJ'"":111. Pn nc ,p:i l t .f l':1Lh llr11 1d shall 111.: p:i yahl c lu 1l 1t•
O w 11 c 1 th c1 cof upo n 111 e~•e n l,:t 1u 11 ,md !>lllH ;nd .. ~r f'>f . .;uch 111.nd al lb.: 111 ini.:1p:il o l'Ccl· ot" 1hc l':i y11.g
Agent in 1:1c c 11y 1dt!ll!i fi i.:tl i11 the Je{i 1Ut iull uf l'.;~•i ng Agent ,n th i.: Sc.:.11:m hc rro f 1111ld
'"lJ ~finit wns') 01 :1 1 such other o ffice o r th: Pny i11 g 1\g..::11 1 dc si gm11 i;l! by tile: 1'.,y111,; t\g1..:11 1 h.1 1
stJch purpo,e. l nl crcs l o n each l1 onc! shall he pnya ble hy ched or clr:1(1 ,,f the l'aymi• 1\gt:•ll
mail ed on each lmcrcst Paymt:n t Date to th e Ow:1cr thc,cof :rn of the <.l ose nt bu i;;mcss ,m th e
corn:s pond '.ng Record Date; provided th at intcrcsl pay :iblc 10 an y Ow ner nm y hc p1ml JY :my
oth e r means agreed to by suc.h 0\\11Cr and the Paying A)Jtnt 1!a at docs not req uir e I he L'ny 10
111.a kc moneys a\ai!abk to the Pay ing Age nt c~r li er 1ha11 ot ht:rw1 sc rcqum:d hcrcunclc 1 o r 111c rea sc.
d ie cost& borne by th e City here un de r. All pa yn'.Cll lS oft hi: princ ipa l o f ancl 11tln c>c.1 nn Th e· llnmls
s ha ll be made in lnw fu l money o f th e Uru 1c::d States o:~ Amen:~.
(g) /Ju uk-Entry Rt:gistr(Jr i,:n No twith sta ndi ng a11y ot her provision '.1 crcof, the
Bond s sha ll be del ive red onl y 111 book ,,111 ry fonn re gis tered in the name o f Ced e & Co ., as
nominee of DTC, act ing as sec uri ties depos it ory of the Rood s and princ ipal of and int erest on
Lhc Bonds sha ll be pmd by wi re transfe r to OTC; provi d ed, ho,.ve ver , if at a ny time the P aying
A •c m dctenn ine s , and noti fi es th e City of its deten ni natiou. that OTC is no longe r abl e to ac t as,
or 1s no longer sati sfac ton\y pcrio rrn ir,1! it s d uties as. sec urities dc.-p ository fo r the :.:S onds 1 the
Payin g Age n1 may, m its disc ret ion, e,th e• (i) d es igna te a s ubs ti1u1e secu ni ies de posi tory for OTC
and rc rcg ister the B0nd s as direc ted by s nch substitut e sec urities de pos itory : or (ii ) te rminate the
Joo"-e ntry reg istratio n sys1e m a nd rcrcg1 stcr :he Oo n<l s in the names of th e bcnc fi c in l ow ner s
the reof prov ided 10 it by OTC . Ne i1he, the C uy nor the Payin g Agent shall !iave any I ia hilil y to
DT C. cdc & Co., an y s ubs titute scct:.:-!ties depos it ory. any Person in who~e nam e th e Bonds are
reregi s1ercd at the d1rcct1o n of ~my s1.1 tc.ti1u1 e scc 11n1 1cs cll-p n!-il ory, 11t1 y hf"nef1ci;1 l own e r of !ht=
Bond s or any ot he r Pe rson for (A) any OLt emunation made by th e Paying Agent purs1 , ·. to the
proviso rt t the en d of th L 11nmc diatcly preceding semcncc or (0) any ac tion takc.:n 10 11 nplc:n n:11l
such dch.:n 11i 1rn 1io 11 and the procedures rclc:.ted thereto that is taken p urs uan t to any directi on o f or
in reliance on any 111fo m1a tion provided by DTC . Ced e & Co .. any su bs titut e scr urili es
depo sitory or 0 11 y Pc:-so n in whose ntu:tc th e B0nd:; arc rcrcg ist cred.
Seel!~ Redemption of Bonds Prior to Matur ity .
(a) Optio11a/ Redemption . The Bonds shall s ubiecl to redempti on at th e o ption of
the C it y, 11 1 h'huk ur in pt1 1I , ,u1d if in pan in suc h orde r of maturities a~ th e C it y shtil l
dctennine an d by lot wit hin a maturi ty 011 s ucl: dates as set fo rth in 1hc Sa le Certifi cate
The Co un cil hereby delega tes 10 th e Sa le Del egate th e autho ri ty 10 d etcnninc the dmes , if
any, on w hic h the Bo nd s s hall be subject to opt ional redemp tion and th e redemption
price or pn ces at which such redemp tion may be madt:.
(bl Mandarory Si11ki11 g Fund Redemptinr,. All or any pri ncipa l amount of th e
Bonus may be subje ct to manda1ory s inkin g fu nd redemp1 ion by lot on th e Princ ip al
Pa~1ncnt Date o f th e ye ar s and m the prin cipal amount s specifi ed in th e Snle Certifi cate,
at a rcJ c mptior. price cqunl to the principal amo unt tl:ereof (w it h no red em ptio n
premium), plu s acc rued 11\l ercst 10 the redempt ion da te . Th e Cow1c il here by delegates to
the Sale De lega te the aut hority to detem'Une the pri ncip~I amnnnt!-~nd cfa 1es. on \v hi ch
1he Bonds shall be subject to ,n and :11 0,,,. s inki ng fo nd redem pt io n.
(c ) Redemp tion Procedure.Iii Notice of an~· red emptio n o f Bo nd s sha ll be give n by
the Payin g i\gcnt in the name of the City by sending a co py of such not ice by fi rst class,
posta!;C prepaid mn 1l, not less th nn 30 dny5 prior to the redemp ti on date , to the O •.vncr of
each Bond being redeem ed. Su e)· notice shall s pec ift the numbe r Of nu mbers of th e
Bonds so to be redee med (if reucr.ipti on s hall be in pan ) and 1h c rcdcmpt,on date. If any
Bond s~.a l\ have heen du ly call t·d for recl cmp1 iun :1rn l if, on nr hr:10 re Lhc reclc mpti on dat e,
th ere shall have bcF.!n de posited with th e Pay mg Ag ent in acc ordanct: with thi s O rdinance
fu nds s uffic it-nt to p.1y th e redempti on price of s uch Bo nd on th e redem ption <l mc:, lhc:11
such Bond sha ll becom e d ue and payab le nl such redemption date , and fro m and aft er
s uc b date interest will cease to acc ru e thereon . Failure to del iver ar.y red empt io n notic e
or any defec t tn any rcd cmp 1ion r.01 icc shall no1 affcc ' the val idi ty of 1he proceed in g fo r
1hc redcmpll on of Bond s wit h resp ect 10 wluc h s uch .. a il ure or defec t d,d not occur. Any
Bond re deemed prior 10 its matu ri ty by pri or rede mp11 on or otherwi se shall not be
reissued :i nd sha ll be can ce lled.
S l:c 111-,n 'l Serurits fo r 1h r Boucl s; Fl ow of Funds.
(a) Pledg e of Net Rc H11wes . The Net Rev enu e is hereby pl~ile1 ·d to 1he r,ay111 cn1 of
th~ l3l•nis . The Bond!': r.ha ll cll n:;11tu te an irrcvocH bll! :rnd fi rs t li en up0 11 1h 1.· Net
Hc vc nuc, l1U t nnt ncccss .iri ly an ex cl usive sta.:h lien . In ucconbncc w it h Sectio n 11-57 -
~ S, C.R .S., upon the :ssuanc~ Lit' the n o n<ls, the Nc:t Rcvc ma:s ~hil!l 11 n mcd ia 1cly he
subJcct 10 the !t en o f the pl ed ge . ta 1c j hc rc h wit hou t :rny phys kal 1~cl 1vc 1y, filin g . 111
fiu1 hcr ac t.
(b) Flo w nf Fun d ,\'. lnurn.:<l iately upon th.: i'\Su :i ncc o f the Bon<l"i. all G ross lh:vc11 uc
t1.c11 hdd by 111.:: Ci ty sha ll he cred ileci I') th e Storn~ W:ucr Ente q 1risc Fund. T hc rc:dk 1.
the C11 y shall credit 10 the Storm W:11c1 Ent c rp r.~c: Fun d :il l Gross Rcvc:111 11.: i11 um:t!i:i 1c.·ly
upo n rL•c ci p1 T he Cit y <.h :d l p;1 y fr om th e Storm \V mc r Em crp nsc r-u ncl ,1II O pcrn 11 on
:rn d M ainte nance Expensc:s ns th ey l.,ccom e d ue and p3yn ble Aflcr <.ud1 p:1y m 1:n1 n r rh c
nll oc:n t1nn o f ,ross Reve nu e to ::;uch p;i ymcnt, th e Ci 1y shall 2pply tht.: Nc 1 R~vc uue in lh ,:,
flil h1 wi 11g u 1de 1 o fp 11oii 1y:
FI RST . 10 tl •c credit I Ill e 1111 cn.:s1 Su lwcwu11 1, the i1111ou 11 t:-. 1c.;ltll i1 cJ by th e
Sc<.:tt on ill.:1cof ~nt1t lc d "'Crc:Hio n o f Accounts."· and to 1he ...:rcdi t or :my ot her bu nJ
:u .. co11 111 ur subn ccount hcrc.:;d11.;r c:-.t:i bhshcd fo r 1h..: paymen t o r inte rest c,n i'ar i1 y L1e:1
Bond s iss ucll in nccordnn cl! with the 'cction l:cn·ttf en ti tled ",l\dcl1 11011a l B11ncl s;"
SECOND. 10 the credi t of the Pn m:ipa l Sub:i :count , th e 1uno1 11lts requi red by the
Scc 1i1n !1crcof cnti1lcd '·Crea1io11 o f Accoun ts." :i ml to th e o:rccti1 <'f :111 v o the r bond
:"tcn,u1 H or s ub..ic cou nt lt i•n·11 ficr c;.1 ;i hlis h::cl f,.r the p,1y mcn 1 or 1hc pri 11ci p:1 l of, and
prc1111um if :m y, o n P:,rn y Li en Bo nd s 1s~uccl 11: accordance wit h th e 'l'Cl io n herc1 •r
cn1itl cd "'Ad d 1tionnl Oun J s;"
T HI RD. to :he ..:1 cJ it ur th e Hcscrvc Ai.:co unt . the nmou u s rcc1ui rc d by lhc
Sec tion h(;rc.:o f entitl ed "Creatio n o f :\cco ums , .. mi d to til e ucd11 u r any ut l1c1 nccount
hcrentter e:;rnb hs hccl ns :1 rcsr.:rvc ncco u111 for l'n :-11 y Lien l3onds iss1Jcd ill accord .!ncc
with the Secti o n l:crco f e111 i1lc<l "/\ddi 1i o11a l IJonds;··
FO URTH , to the crcd i1• o f a11y ll lhc r fund or accoum he reafte r estab li shed fo r 1he
p.1yme11 1 o f t:Jc pr in cip a l o f. pr emium 1f an\·. :rnd interest on Subordi nate Lien Bon<l :>,
rn c-ln cl ini ;i ny sinking fun rl . rese rve fund o r si milar fu nd or acco un t c~ta bli shed the refor.
th e ;im o unt i-requi re d by lh~ o rdi n::ncc.: or Oi her en.,c tme,11 nulho ri 7in r. p:;:.1 1:1111:<· n f !he
Subo rdi nat e Lie u Dond s; ,1n<i
Flf'T H, 10 1hc c1ed. o f ,my other fu :1d o r nc cN mt ns m:1y be designa ted by 1!:e
Cit y, 10 be used for any law ful purpose , ai 1y 11 ,l 111cy~ 1c1 :,a 11 11 11 g 1n th e S1r•11 11 \V~1t cr
l:nh.:rpn sc l·uncl afte r lh(; pnymc 111 :; and a,;cu mul:1tu 1ns ~c l fo rth m PI RST thwugh
FOURTH he reo f.
(c) :Wa i11te11 a11 cc of Ratc.f u11J Co1'1:rc1.i:e . The Cit)' here by co ,·en ants that it wi :I
csla bl isb. ma intam, ~nfo rcc and co ll ect ra tes . fees and chnr gcs for sc tvi ccs fu mi s:1cd by
or the us(• o f 1he Slon n W:-iter Syst em 10 create Gro ss Re ve nue each Fi scal Year
su ffi c1cn t tu pa y O pu-a tion and Maintenance Ex p::nscs n:1 d to c reme Nc1 Revenue in r n
arn ou nt: (a) cq11 a\ to no t Jt.:55 than 1 15% o f lhe '!1110u:1 t ne:::ess ary to pa y whe n d u e the
~•1 ii 1ci :.rnl o f nnd inte~est on the 0 or.ds and any Pnrny Lien Bo nds comi ng d ue du ,·ing such
F1sc;il Y..:ar; and (b) Lo 111ukr.: u1 m y <l c::fic ic:n,.;ies in the Re serve Ac~ount and any reserve
arcoun t est ablish .. ~d fo r Panty L ien IJ o nd s . In th t; c,·rnl tha t th t: Gross Rev 1.:n uc:: J I a 11 y
1imc 1s no1 suffi cienl to make such pa ym ent s, the City shall in crea s e such rm cs, fees and
charges to an exten t which will ensure the payment s and accu m ulations required by tlus
Ordinance.
(d) Hand s l)o No t "..,m·titute a Debt . All of th e Bond s. toge th er •.;,ilh the im erest
thereon and any premium du e in co1 u1 ec uun thc rcwil h, sha ll be payab le onl y out o f : {1)
th e Bond Acc ou nt ; ur (ii) 1f nece ssary, the Reserve Acco unt. Th e Owners ma y not loo k
to any gcnc r,I or oth er fu1 d of th e City fo r th e pa)1nent o f tr,e princip al of, pr cntl um if
auy, and int erest on th e Rn~11 ls , exc e pt the fu nds nnd acco1.nt !; pledged th ereto by thi s
Ordinance, and the Bon~, Jl,all not constitut e a debt or an inde btedness of th e Ctty
wit h.in lhe me ai.I:1g of an \1 \ )T1 Stitu t1onal or sta lu tory prov ts1 o n or lurnt ati on; nor s hall
the y be con side red •Jr 11eld to iA~ genera l ob li ga 11ons of th e C it y.
Secti on 6 . Form of Bonds . T he Bonds s,~all be m su bstanti a ll y the fo rm set fon h in Appendix A
hcAr .. ;o with s uch chan ges lhc re lfl . 1·1 •t i1 co nsistcnt herew it h, as ma y be neces sary or de sirable and
appro ved by th e offici als of the Ci<y execu1111g th e same (whose man ual or fo cs i111 ile s igna tu res th erean
sh,lll const itute concl us ive evi de n.:c of suc l1 a ppro va l). AJl cc vcnants, statements, rep rese nta ti ons a :ul
agreem ents comain cd in the Bond s arc hereby approved and .,dopt ed as the co, .,1ants. stateme nt s,
rcri ~•-~ntat ions and agree me nt s o f the C it y. l\.lth o'Jgll att ac hed as appendi ces fo r the couvcni t!n cc o f the
rcad c1. Ap pendix A is an inte[!rnl pa n of thi s Ord ina nce and are in co r pora ted h erein ns i f set fo rt h in fu ll
in the bo dy of this Ordi nance.
Sec ti on 7. Ex ec ution of llonds . Th e Bonds shall be execu ted m th e name and on behalf of the Ctt y
with th e manu al or fa csimile Slbrtta lurc of the Mayor , :-r ail btar a man ual or fa cs im ile of the seal o f the
li1y :mrt s h:111 he a ttc1a cci hy the m;i 111 1;t l or fn cs im il e 1o 1gn:1 t ure 0 f the f:it y C le rk o f lh e C:011 nc il. a ll n f
wh om arc hereb y i\uthori zcd and di rected to prcp 1rc nn d execu te th e Bo:ids in ncco rd:rn cc with the
requirement s hereof. Should any o ffi cer whose manual or fa csimile signature appears on the B 011 ds
cease to be such offi cer befo re deli very of any Bond , such ma nual or fa cs inti lc sig natu re shall
ncven helcss be va lid and suffi cie nt fo r all purposes . Wh en the Bo nd s have been dul y exec uted, th e
officers o f th e Cit y nre aut hori zed to , and shnli , de live r th e Bo nd s to th e Pa yin g Agent fo r uulhen ticn tion.
No Bond sha ll be sec urc-d by or titl ed to the benef:t o f thi s Ord.'1 ance, or shall be vali d or obli ga tory fo r
any purp ose, unl ess the cenifi ca te of aut hent ic ati on of the Paying Agent has bee n manually exec ut ed by
an ;1u th orized S!b,'ll.tl ory of 1he P.1yi ng Agenl. The exec uted cen ,fi c:n e nf ,m thcn 1i r.;u in n n f 1h c Paying
Agent upo n an y Bor:d sha ll be conclus 1vc evi den ce, and the o nl y comp et ent ev id enc e, th ;1t s uch Bond ha s
bee n pro perly auth enti cat ed and de livered hereunrl er.
Sect ion 8. R egistration of Hoods in Regi stration Hooks Maintained by Paying Agent Th e
Pn) in g Agent s hall m:ti nw in regi str:i ti un book:: ,,, whi ch the owncn;hip, transfe r and exchange o f Bo nd s
shnll be recorded. The perso n in whose nnme an y Bond shall be regis tered on such registrati on book
shall be deemed 10 be the abso lu te own er th ereo f tor all purp oses, wh et her or not paymenl on a ny Hon d
,;;hall he nvcrd ue, nnd neit her 1h c C ity nor 1he Payi ng Agr.111 shall he affc:tc d hy :tn y nnti cc mother
info n na tio n lo 1:1e cont rary .
Sec ti on 9. Transfer aud Exchaugr of llondr. Th e Bonds may be tra ns ferre d or exchanged at the
prin cip al o ffi ce o f th e P,yin g Age nt in th e ci ty idcm ifie d in th e defi niti on of Paymg Agc m in th e Sec tion
hereo f lilied "Defi ni1 io ns" or at such 01her office of 1.hc-Pnyi.n g Ag..:nt design:i tcd by th e Pay ing t\genl fo r
such purpose fo r a like aggre gate pnnci~al am ount o f Bonds of other aut hori zed de nomin ati ons o f the
sa me maturity and un cr cst ra te, upo n payment by th e tran sfe ree of ::i reaso nab le tran sfer fe e e sta blished
hy the Paying Age nt , together w11 h ;,ny 1nx or goverrunenlrt l chargl! req 11 ir crl 10 he p~irt w ilh resp ec l tn
suc h trans fer or ex chan ge and any cost of pn nt ing bond s in con nectio n therew ith. Up on surre nder '.o r
tran sfer of any Bond, du ly en do rs ed fo r tcansier or accompa nied by an ass ignm ent du ly ex ecuted by th e
Own•:r o r hi s or her att orne y duly auth onzed in \\'l'1t ing, the C it y shall execut e and the Pa yin g Age nt shall
:rn thc n1i ca1C and de live r in the name of1h e. lra r:s fcrcc a new Bond. No1w i1hstandin)'.! nny olh er prov is ion
hereof, the Pay ing /\gent s ha ll not be required to tran s fer any Bond (i) v,hi ch is sc hedul ed to be red ee med
in wholl! or Ill pa r, bctw~c n th e Bu smes s Doy inuncdi::i tcly precedi ng the rn:i ilin g of 1hr n o t T .(' nf
rcclcm pt10 11 :md tht: rc1lc111p tion <late or (i 1) b~lw cen th e Reco rd D::itc for a11 y latcrc!-t P:1y111t:n l Date an d
!..1c!i l11 tcrcst Pnymcn l Dale
Scc1io n 10 . Repla cement of Lost , Dc s1n,y1.·tl ur Stolen Hu111h I f ;my Bunt! :.li ;:\I LLl.:P1 11c lo~,.
:1 ppa ·ul y dest royed, stolen or wr0ngru ll y 1;-ikcn , i1 may tc re pla ced 111 th e for m nncl tcnnr or th e Inst,
dcstroyccl, st olen or taken 13ond a nd th~ Ctty sh al l exec ute and the l'11 y111g Agent sh all :i uth c11 11ca·c 11 11 ,I
deliver :!. rcplaccmt.:nl Bond upon the 'Jwne r furni shin g. to Lile satisfnc tio n of the l'a yin g Agent · ia) prul)f
of ownership (wh ic~ shn ll be shown hy 1he rcgi~tra tio n hnoks o f the l1:1 ying Agent). th) pro o f or loss .
di.:st ruc uo n or theft. (c) an i11d cm1u 1y tn the C11y ;m d lhc Paymg A~t:n t wnh n.:s pcc\ I<' the Bnnd lost.
cics trnyrrl "r 1:\krn, :ind (rl ) p;i ymen l of 1hc r.n'-I nf prc:parinr mu l cxcc Jt ing tht: new Il o nd .
Scculli!..lJ.. C r ea t ion of Accou n ls.
(:1) R c «fflrmatin11 of s,,,,.,,, Wa t(tr J::11tc rprisc Fund . Th ere 1s hereby rea ffirm ed th e
S1u1111 \1/atcr E111 1,.:1 piisc F11111I.
(b) /Joml Accmmf There is he reby cs t:ib li s hed the Bo nd Acco unt c,f the St orm
W:i tcr l.:ntcrpn sc· hmd. whi c h sh:i ll be 111:1111t11111cd by lhc C 11y 1 11 acc r rcl:111 cc w ith tht:
pro\'i s ions of this 01 dina11cc. Moneys in the IJ 011 cl Acco11 11 t sha ll be u-;cd solely for th e
pu r po se of paying th e pr;ncipal of, 1Jrcm iu m if nny . nnd i111 erest on the Bond ~. Thc1 c
drnll be d eposited v.it h th e Pay ing Age nt 1101 less 1h:111 1he Busi ness Da y prio r to each
lnlercsr P:iymc:nt Oa tc 1111<1 Pnn cipn l Priyme11 1 Datr;, respec ti ve ly (i ) an amo un t from the
lnt er es t Suba ccounl which is s uificicm to pr1y th e int cr1.•s 1 on th (• l3 011d s d ue o n Su<'h
lntere:.;t P:iyment Da te :uid (ii ) an ::mount from 1hc Pr in cip:11 Suhaccount which 1s
s uffi c ient to pny th e princ1 pnl of ::tnci prc,rn um, if any, :luc on tl:c Bon ds on such
Pri rn.:ip.tl Pay1 m:lll Datt.
(1) /11 tcres1 S11 bacco 11111 . r he llll crest ~u ha ccoun t sha ll be used 10 pa y the
in terest on Bone.l s. On or befo re the last day or c;ich mon th , commencing
in lhc month ne .x t succeedi ng th e dale of issuance of the Bo nd s, th e Ci ty
s ha ll cre dit to th e int eres t Suba cco unt. from the Ne t Reve nu e ru1d any
1111c1cst inco me 10 he credi ted to Lhe Lnt crcst Suba ccO'J lll pursu ant 10 the
tc m1s l1t:rcof, an amo unt eq ual 10 th !" Pro Rat:1 Pon ion of ihe in ten'!o;;I tn
c0111c due 0 11 the Bonds 0 11 th e nex t suc:eeding lntcr''SI Pa yme nt Date .
tii) Prim.:ipu l Sub11t:co1m/. The Pri11 ci µa l S ubc.11.:r.:u uut :,hull l,c used 10 pr.y
the princi pal ol anti pr emium , if a ny, on the Donds . On or befo re the l~B t
day ol eac h mon lh , co mmencing 111 the mon th next s ucc eechn g the da le
o f issu nn ce of the Bond s. lhc Cit y shall credit to th e Prin cip al
Su bacco 1J nt, lrom the Nc1 Revenue an d any inte rest income 10 be
crcdi1 cd to th e Prhc1 p:1 l Subacc ount pursuan t to th e tcml s hereo f. i!ll
a mount cq unl 10 :i.e. l'ro R:u:i PC'l r1 ion 11 f th t! prini.:1 r :1 l comi ng clue nn 1hc
Bond s on tf1t~ nc•:( !!!~1cceedi11g Principa l Payme nt Date
(c) R c::icrvc Accm•nt. 1l1crc is hcr -:::by cstnbli .;hcd th e Rc!ic rvc Acco unt of the Stonn
\Vme r E111 erpri se Prn 1d, whi ch shall br. 11 uii11 Hti 11ed Uy l h!! City in accorda nce wi th the
prov isions of this Ordm ancc. Mone ys in the Re serve/ .::co u nt sha ll be used , if necessary.
onl y to preven t a defa ult 111 thcpaymc n: of 1h e princi ~-nf, premium if any , or int erest 011
l!ic Bond.!\, an<l the: Reserve ,A.cc0uul is lt 1..:11.:Uy plc<l gt:J tu tl!c pa ymc,u or Ili c Bomb . lu
the ev ent the am ounts credi ted to the Bond Acco unt are insuffic ient to pay the pri ncipa l
o f, premium 1f any , or in teres t on Bonds when clue, the Ci ty sha ll transfer fr om the
Rcs cr .,c Account to the :1 pprop riate sub:1cco un t o r subaCCOl.:nts of the Beo nd Ac count an
amouni whic h, wh en c0mbined wit h moneys in the subaccoum or subac.:coun ts, will be
suft 1c 1e1:t to ma.kc such payments wht::n due.
(i) A-fa illl emmcc of Resen 1e Acco unt. Th e Requi red Reserve Amo unt s hnll
he funde d and nm in tn incd in cash or Pcnnj tt cd Inves tments. ·n ,e
Res erve 1li.cco um sha ll he mmnt a incd in the amo unt o f the Req ui red
Reserve Amount until such time as the an:ount cred ited th crehJ , when
n m1hinc<I wi1h mon ey, in th e Rnnc l A cco unt, wil l he sufficient 10 pay
t.1e pri ncip al r, premium 1r any, and interec.t n nil of th e Bonds , at
wltich ti111c su.:h moneys may be appli ed for such purpCls e. If at any rime
::1e am ount o f the Re serv e Account is les s th~rn the Req uired Rese rve
'mo ulll, then th e: City shnll de pos it Lo the Rese rve Account from th e Net
·enuc. am ounts suffi c ielll to brlng the amcun t cred it ed to the Re serve
A... llUll to the Required Re serve Amount. Such dtposit5 shall be made
as soon as poss ible alter such L Sc, but m accordance ,,.·ith and subJcct 10
the limitati ons o f the Sec tio n he reof entit led '·Security fo r Payment of
Bond s; Fl ow of Fund s,"
(ii) Valuat io n and lntlTcst lncomc . Mo neys cred11ed to the Res erve .i\ccomu
which are inves ted in Pennitttd In vestments shalt be va lued .i t fa ir
market v:!.l ue :ind marked to markt.•t at least once per yea r. Addi tio nally.
th e invcs um:m ur rr11 ·•11..:ys credited to the Reserve Account sha ll be
subject 10 the cov nl s and provisions of the Secuon hereof ent it led
"Federal h1comc ; Covenants ." Except to the ex tent o t1,erwisc
required by su ch Se .,ion, so lon g as tbc am ou nt of 1:1< F.esc rve Accou nt
1s c;q ·J a) to th e Requi red Rese rve A1 ount. all interest 111comc from the
investment or rci i:vestmcn: of mo neys credited to th e Re serve Account
sha ll be credited to 1hc Interest Subaccounl anc lor the Principal
S:.1baccowH 1 as may be detennincd by the City ; pro vided that if 1he
,Jnount of the Rese rve Acco unt is less than the Requi red Reserve
Am ount. ther. suc h int e rest income sh a ll be cred it ed to the Reserve
Accow1t. ·n 1c a.m ount on deposit to the Reserve Account slrn ll never
exceed the amoum o f 1h e Requ ired Reserve Amount .
Scc1 ion 12 Initial Cr edit of Bond l'roccc d s. Upon pa;1nc111 to th e Ci t)' o f the pu rchase price o f the
Bonds in accordance wit:\ the Bo:id Purchas e Agree ment , the Bo nds shall b e deli vered to, o r as Cire r.t ed
by , th e Und erwriter and th e prorecd s re ceived '"by th e C ity fro m lh c snlc of 1h c Bond s. 1ogether wi:h
lega ll y availa ble moneys of th e City avai lab le fo r such puq iasc, shall b,· app li ed as a su pp lem ental
appropna1 ion b~ the C 11 :, for th e pay:rn:m of 1hc cos ts or issu ance or the Bonds a nd as proY1ded m 1he
Sccti0n hereof cnti1 lcd '·Pa yme nt of llc fumled ll onc s" for payment of t he Refund ed Bond Requiremen ts .
Section 13. P ay ment of Rcfund t d Uonds
(a) lmmedime Pll)rttt ent an d Ca ,,cc llation of Refunded Bonds. !n i nc e·.,c nt thn t ti)
!ht· d.1 1e of de livery o f the Bond s occ urs o n a clatP. whi C"h perm it s th e irre-vn1;,1hle dc pC'~il
of the gross amount r:ece ss ary fo r :he r aymcn t and ca11 ce lla1i on of the Series 200 l Bond s
on th e Cal l Da te into the bond acco unt for <he Se~es 200 ' Bu:1ds es tabli she d with :he
Rcfu,1de.d Bon ds >ay ,n g .-\gen t and (ii) 1he Reft Lc~ed Dond ; Pa ving Agent reaffim1 s :he
:i mmmt whic), is necessary for the pa yment and cancd la1ion o : the Ser ies 200 I Bond :-mi
the Ca ll Date, the ne t proceeds of th e 11ond s sh.ill be applied fo r such purpos..
(hi Establishmclll '"'d ft ·lai11te11a 11 ce of J:.'scrnw Accmmt. ln th e even t that !he net
p:·occed3 of the l:\oncl s are 11 I dcposit cd wit h the Re fun ded l\0 11{1S Pnymg Age nt :is se t
ron h 111 p:m1grnph (n) o f this Sec ti on, 1hcrc 1s !w rcby establ ished il spcdnl a..:c,111 111
dcs ig11 :l \t,;d as th e "Sc::1 il. 200 1 llurn !::,. E~1.:ruw 1\l.'.t.:o u 11t.'' w l 11 d 1 ~liu\l h1.: 111:ii nta im.:tl 111
accorcl ancc with t he pro visions her eof w d o f th e Escr C'IW Ayrccmc:nt. The Esc r,;-,\\
Ac CC\lllll r.hnll be 1nni l''.1111 cd in :.1 111111 1o u11 t .i t th e ti111 eof 1hc inil wl dt:11usit•• tlll'r~i11 ~ind at
~111 tim es s·Jb sequen tly nt lcns t s uffi cien t, logcther with '.hl! known :ninn r um yie ld \('I he
derive d fr om the in n 1nl 1nve:;1 me 1r. an d any tcmpo r:iry n.:in vc:s l n1t:nt o f 1he dcp0sil:-
lhcrc111 or a ny pnr l thereof in Dcfcns:incc Srr.11 n1 ics 10 pay 1h,: lkrti11 rl1 :d Hn1w
Rcqtlircm cnls . Exce pt ns may be otherw is e pro vide d in til e Escrow t\g rc~m.:nl. th1..: Cl\y
sh:d l ,i.1 vc no ri v.ht ,>r title 10 the mo neys cred ited to or held in the Escn ,w At:count. ;m e.
suc h titl e sha ll be and is hereby trans ferr ed to the Dank in tni sl for the p:iy n,c nt n f the
Rt.:fundcd Bond Requireme nt s pu rs uant to the E:.cmw Agrct:m en t. Moneys shal l be
w;•tid rawn by the Bank fr om the Esc ro.,, Acco unt on th e Cal l Date to pemi.it the poy me n:
w11 ,1o u1 dcfo ul l of lhe Refun ded Boml Requirements . If fo r ni:y rca m n th e amou nt in the
l:.scPJw Ac cou nt s ha ll :1 1 nny 111n be ms uf lt c 1ent lor 1bc JH1rpO$C hc rco l, the C 11 y shall
10 :thwi th from 1:1c fir st moneys avai b h'.r. Lll f;1cfor depos it in such :1ccou n1 ~m.h adth t1 011a!
money s a s sh all he neceS$:t r>' lO pi.!trnit the pi1)111e111 111 fU l of 1hc Refun ded 13 ~nd
Requi1u 11c11b.
(c ) Ca ll nf Jl efumlctl JJmu/.,•. Subject to the i!;!.U:lllCC of th e 13C'l rn.b. 1hc Cou ncil Col!:>
here by de -:lnrc i:s int clll to exercise un bc:h:ll f of mid in the nam~ of ll1 1.: Cit y its upti un w
reri ePm nr p:w :md ,~:mr.el ,Ill n f 1he St~ri es 200 1 Bo nds 011 1J·e-Cn ll D:11 (' T h1.: Ct1uru;11
hereby ~iuth orizes th e: Snle Del ega lc detc.:nnin c th e Cu ll D:!I<.:: :inti tn irrc\.nca hl y i:1~1ru c:r
the Ba nk 10 give o r cc1u sc to be given n no tice o f refundi ng. dc fcas ancc :rn d rede:n ption of
the Series 200 I 11onds.
Sect ion I 4. Investments. Proceeds of the llonds dcl ivc r~d to th e C it )' purs uant to the Sec ti on herco:·
titl ed ''lrnti:il Credi t of Bond Proceeds ," moneys on deposit in th e Bond /\ceu-Jnl and th e Reserve
/\ccou nl . and any moneys hold by th e Paymg Agent wi th re spect to the Bonds sha ll be invested in
Pcnmttcd ln vcs1rnc:nt s . providt!d that the mvc:..-st ment of suc h moneys s hall be s uhjcet to any ::pph cab le
rcs tri c1ion s set lb nh in the Tax Lener of l..n stru ctio 1t'i and in the "Tax Co m;:,li ancc Cen ific:11e" or s i1rj ln~
ci..:111 fi c:1t t· Ucl ivt:rcd JY th t Ci ty in conn ect ion wit h the iss uance of the Bon:'!s tha 1 descri bes the C ity's
e~pc1;1:i 1i o ns re!,!a rct 111g th e l.sc a nd i1n·cst mcnt ofpr(tCceds of tile Bo nds .
fut':1 io n 15. Various f.i nclin gs, Jetcrminntions, l)edn rntions nod Co ,·c n nnt :,;. '11,c Cn um:11,
h;w ing been full y in fo rmed of :m<l h:lV ing co:i s idcrcd all th ~ pt:rtinent fa cts and circ un1.-:1a nccs, he reh y
l111d s , delc nnmri., d (•c l:i res nnd covt·n ant s with the Own.:rs nf thc Bo nds th:w
(a 't it is in the besl inl crcst of the City and it s resi dents th at the Bond s be ;1uth1)n zcd.
so ld, iss ued and deli vered at th e time, in the nrnnn er and fm the purp oses prov ided in tl m
01di11 :111ce.
(1~) the iss uance of the Bond s wi ll net cau se the City to cxcc1.:J it s deb 1 li :uit un der
tt ~µ1 1ca b le Sta te law;
(:) 1: e OTC Bl anket Le11er of Representatio ns entered illl o wi th DTC w ill go vern
· .1 hoo k entry reg istrnti o11 syste tu fo 1 the Dou ds; aud
(d) the issuance of the: Dond s and all proc edure s undertaken incident lhcre to arc in
full cor.,pliance and co nfo rmit y wi th all appli cab le req uire mcms, ?revisions and
limitations prescribed by the Charter , the Colora do Constitul ton and laws of the Stat e .
Sec t ion 16. Addit io nal Covenants and Agreemen t s. The C ity hereb y further irre voca bl y covenants
and agrees wit h each and every Owne r th at so long as any of th e Bond s remam Ou tstanding :
(a) Competcm ft1anagemcnt. The c;,y shall emp loy competent mana geme nt
personnel for th e Sto nn Wme r System and will co111in11c to opcrn tc n.n d mnnogc the Stonn Wmer
Sy sll:m in an eflicient and economica l manner in ac ...:or<lan cc with all ap plicab le law s, mies nn d
regu lati ons.
(b ) Maintenance of Records und Acco11111s. The City sha ll keep proper bo oks of
rt:~01J :rnJ u1.:1.:v u111 s sli uwi 11 g t.:u111p ldc:: aml cu 1rc1.:t c:nt nc:s uf all tra 11 :,,.tCtiu11 s rd c.niug tu th e fuu Js
and acc oun ls referred to hcrei.n and in such manrn:r th a1 the Gross Reven ue and the Ne t Rcvcr.uc
ma y at all times be readi ly and accura te ly detemlincd .
(c) Alie11atio11 of Property. The Ci ty will not sell o r alienate a ny o f the prope rt )'
ccnst itut ing any part or all of the Stom1 v:atcr System 111 any manner o r to an y ex tent as might
reduce th e sec urit ~ provided fo r the payment of the Bonds. but the Cit y m;,y sell any portio n of
such property whic h shall have be en rep laced by other sin ti lar property of at least eqt1a l va lu e, or
whi ch shall cease to be ne cessary fo r the e fficien t o perati on of the Stonn \V.i.tcr System ;
provided howeve r, th at the proceeds o f any such sa le of prope rt y shall be in cluded as pan of the
Gross Revenue .
(d) Paym cm for Use a,id Senrice.\·. Tht: City will prompt ly rend er bill s for se rv ices
furnished by or the use of the Storm Water Sys tem , sha ll use all legal means to as sure prompt
oaymcnt thereof, shall take such action as ma y be necessary to make delinquent rates, fees an d
charges f the Sto n n Wa ter System a lien upon th e rea l pr operty serwd .
(c) Audits. Al least once a year 111 th e ti me and manne r pro vided by law , the City
will cause an audi t 10 be perfom1cd of the record s re lat in g to the reven ue s and ex pend iture s of
th e Sto:-m Wa ter Sys tem . Such audit ma y he made part of a11d in cl uded within the ge nera l audit
of :he Cit y, :i nd madt= at the sa me time as tlw gen era l audiL In a<l <l i1 io n, at leas t once a year m
the t i 111 t'.: anJ 111;:1111t:r pruviUcJ l,) law , lht: Ci ly will L:au::,t: it buJg.cl tu l>t: µ1 1.:pan:U amt adop t,t\,
C'o;i ic s of the budge t nnd lhc audit will Jc file d an d reco rded in 1hc place s, 1ime and manner
provtelcd b) law.
(f) In suran ce. 111 c City w\11 carry such fonn s of in suran ce on ms urabl e Stom1
Water System property as wou ld ordmari ly be earned by utt ltttcs having stnu l,r propert ies o f
eq ual va lu e. such insurance being in such amowH s as will pmt ect the Storm \Va ter Sy stem and us
opera ti on. In the eve nt of a.t1 y los s or dama ge to the Stonn \Vater S)'Stcm , or in the even t part or
all uf tl1 c Sturm Wa ter Sy stc::111 b takc::11 by tllt: ,xcH..:i::it= uf a puw,r uf t:111i m:u t Uumain , th1;
msurancc proceeds or the co nde mnat ion awa rd shall be used for restoring , repla cing or rcpair.ng
the property lo,t, damage d or take n, and the remai11der ther eof, if an y, shall be considered as
Gross Reven ue~ provid ed ho we ver, th :'\l if the Ci1 y Counci l de1enninc s th:it the opcr:i ti on of :he
Stonn Water Sys tem and the scc unty for the Bond s wi ll not be adve rs ely effected thereby, the
City Coun cil ma y determine not 10 res tore, repla ce or repa ir the prop ert y lost, damaged or taken
and all o f the insuran ce rroc t·ec1 s or condem 1rn 1i on awa rd shal l he ctin siderecl :1s Gros s Re ve nue .
(g) Surety B<•nds, EtH.:h Di stri ct ofli c ia l u1 ulht:r pt r::iu 11 havmg cust ody t.)f an y fu11J s
de rived fr om the opera1 ;o n of the St orm Wa ter Syst em. or re spo nstb le io r the handltn g of such
ltind,. shall b e full y bonded at all times , whic h hund shall be cond 1t 1uncd up n li te pro per
:-ippli c:uirm o f s.t ici fun d s
(\1) Entt!rprisc Stafll.\', ·1 he Ci ty hai:. establi she d , :ind co,•t!1rn 11ts 10 co nti nue I C'I
mointuin, th e Stonn 'W a ter System ,1 s im ''cmcrpn sc'· wi thin th e mcnn in ~ of ,\rtic :c X, Scc11or: 20
o f tl it,; Co lu r;1d o Co :1s til 1lli o 11 1 ;rnd a s u "water acti vit y c ntc.·rpnsc'' within the mc,,ning llf l'itlc 3 7.
i\rt ic lc 4 5 1, '..R.S.: p 1c1vidcd, hn wevcr , a(1c:-1.:;1lc nd~ir ycat ~0 12 1111..: Ci 1y 111r1y 1li sq u,1l ify 1l1c
S11-.rm Wat er 5}SlClll ;is rm ·'enterp rise·• in any }car in ,vh ich "ni d cli squnlili caiion doc's llL'I
lll :lterrn ll y, nclvcr sc ly :i fl cc t tl1~ c11torcc :ih 1h!y of the cr,vcna 1J1s made pur suant 10 this 0Hlma m:c.·.
In t he evcn1 the St orm V./:ttcr Sys t :n is d 1squ:llifi cC as 11:1 enterpri se and th e c:nforc r.:a h ill ty nl'th i;
cnven:n m m :H :c pu rs u~nt 10 1hi s O rdinance arc mat erially, adversely affc(.;tcd. 1hc C it y cnvc11:i n1,
to in11nctli :11dy take all nc tions n ccc::;s:.iry to (i) quali fv the Stonn \\later Syslcn 1 a s :111 c1 11 cr pr isi.:
wir h i n the 1n,:1 1mng n f Arti cl e X c-• ·i nn 20 ,if thl: Colorado C on~titu tio n nncl (1i) perm it th..:
c nfo rc-c 111c11t of the covcn:rnt s nmd . .:i n
(1) Protectinu nf Sccuri(r. The City. it s o rfi c crs. ugc1 :1~ nnd emp loycci:, shall no!
Hlk.c any acti on i!, such manner o r 10 such ex te nt n~ m 1g11 :1 rcjud 1cc 1hc securit y fo r th e pa ymcnl
of 1he pr in c ipa l of a:ul intc1~t 011 tht: 11u mls amJ an y other .~·t·.:urities p .. yab lc f1u111 th e '.'Jct
Rc:vc nue accord ing to 1hc te rm s thereof. l'\o :ontra ct shall be i ,t:red itu o m,r a ny mher nc 1io:1
tak en hy whic h the right s of th e Owners 1111 gl ll he-pr(:111chc 1:1 ll y ;rnd matcri nll y impn1 ret'. or
d iminished.
Sec t ion 17 . Federal fnco me Tnx Covcn:uus. For purpns cs n f ensuring lh:11 th e i 111 erc ~t on the
Bond~ is i'llld rcm,1111 s C\;.Ci 11 dcd from gros s in co me for fed era l incnmc la ."< purpose.,. th e Ci l v hi:rcbv
cf1,•c-1wr:ts thnt :
(:i) l'rol,ihited Actin n s . The Cit y will 1101 use or pcnnit th e use of :m y prc,cccds of
1hc Bond s o r uny ot her fu nds of the Cit )' f, >rn whatever 5(1 urce derived , <l ircc tly c,r
i11d i1 c:c tl y, to .1 c,1 uirc nny sccn ii · :es or obligations and sh~ll not inkc o r pcnnil to be 1.ikC!t
any o th er ac tion or ilCti ons, which wo uld c:1usc any 8 011d to he: an ·'a1 h it ragc humJ"
wit hin the mcnni ng o r Sec11011 141': uf th e Code, or wo uld utlu..:rw ise causi.: ih c i111crcs 1 on
any B ond to be includiblc in gross income lor tedera l 111come li\X purposes.
(b) A[fir•nuti1•e A ctions. Th e City will a: a!I tunes do and pcrfonn all ac ts pennitt ed
hy law that are neces sary in ord er to assur e tha t interest paid by th e Ci ty on the Bon ds
shri 11 ,,oi he in clurlib le in gro ss incom e fo r federa l income tax purpose s under the Code or
:1 :1y ot her v2lid provis ion of la w . ln p:in icular, but without limi t ti('ln , 1hc C11~
re prc~crn :-., wan.mis .1nd coven:.m ts to C(.\mply \\'ilh th e followi ng ru lc i. u11 icsf ii rc-c cives
n;i u p :nion or Oond Coun sel ~an ting that scch comp liance is 11 01 neccssn rr: (i ) bl'05 S
prucl:cds ur th e Bumls will m1t Uc used 111 a 111.tn.ni.:r tha t w ill -.;ausc th e: Dond s tci be
('Ons ic!c red "pri va 1c acti vi ty bonds" wit h111 the mea nin g o r the 'nd e: (i!) th~ Bond s me.!
nol and will nut become dtrcctl y or 111dircctl y "federa ll y gua rn ntccd ''; :.md (!ii ) the Cit y
wil l timdy fi le illl lntcrmil Revc:nue Serv ice l'onn 8038·li with res:>cct to the 13ond ,,
wh ich sl·.ai l c ontain the iu fo nnat ion rc4uired 10 be filed pu rs uant to S~c ti~n 14 9(<) of the
CoCe .
(c) Tax Ll'lter of lmilrur.tim,,·. TI1e C it y wi ll cn mply with 1h e Tax ! ct1c~ tl f"
ln stn.a cti ons delivered to it on the date of is suance of th e Bond s, in ,~!uding but not Ii•···.~..:
by the ?rovision s of thi.: Tt!x Letter of ln~tru cti ons regurdinf ::l e appltcutic 1 and
investment o f Dond p1o c1 ~eds, the cal culat io r.s, the d epos it s, lh .: di sbursement s, th:
invest:m:n ts and t. • re tention of rt:corJs <lc.s t.:ribc:U in the Ta;\ Leue r ui lu~'.rui.:liom ;
provided that , in the evem the Tax Letter o f ln stmctions a re sup ersed t.--d or amend t.:J by
new Tax Letter of b1 stru c1ions drafted by , and accom pani ed by an opmion of, f1ond
ounsel sr,iti..ng th m th e use nf rh e new T;1x 1 ettcr nf lnc.tru ctmM will not cn usc 1hc
interest on the Boud s to become mcludible in 1,,ross income fo1 federa l income tax
purposes , 1hc Ci 1y "ill 1hcrcaf1cr comp ly wi1h the new Tax Lener cf ln s1 ru c1i ons.
(d) Designatinn of Bond , as Qualified TtL< Exempt Obligatinn .,. Tac City he reb y
designa tes the Donds as quahCi c ,1 tax exempt obl igations within the meaning of
Scc11 on 265(b)(3) oi the Code . The Ci1 y covenants that the aggreg ate face amo unt of c,11
tax exemp t go've mmcntal c·;i 1i gations de fined in Secti on 141 of the Code or qualified
50l(c)(J) bonds dc:incd in Sec ti on 14 5 of the Code issued by 1he City, together wil h
governmen tal enti ties whic h dcri\'C their issuing authority fr om the Ci ty or :u e subJcct 10
subs 1a111 1al con lrol by lhe C11y, arc 1101 ex pec ted 10 be mo re 1l:an SI U,UUU,UUU du n ng 1ho
c:lic:11cirtr yea r in whkh the Ron ds i1rc iss ued . T~.I! Ci ty recognizes th at such tax C)(.empt
c1b liga1ions include nolcs, leases , loans and warr:m :s , as well as bonds . The '""i ty funhc r
recognizes that any bmk., thrift in st ituti on ur 01hcr fimmciu l institution thli t uw11~ tlu::
Bond s wi ll rel y on 1he City's dcsigN1 ion of 1h c Bonds as qua li fied lax exemp t
obligations fo r the purpose of avo id in~ 1he loss of 100% of any 01herwi sc avai lab le
inter ,;t dcducu on allri butablc to suc h mst11u1i on's lax exempt ho lding s.
Sec ti on IS . Additionnl Boud,.
(a) l\'o Superior Lien B onds. No bo ncis. note s, interim secuntie s or ot her
ob li ga1i o:1 s shall be issued payable from lh c Nc 1 Revenue and havi ng a li en th ereo n which 1s
superio r 10 1he lien of 1he Bond s.
(h) Parity Li,:11 Bond,"i. Tl ·c City m.iy issue Pa rity Li en Oo nd s if'
(i) As of the da1e o:"issuance of 1hc Parity Lie~ ~onds 1he C.1y is :n
sub!-tantial com plia nce wi1h all of 1h e covcna·:t s or 1h is Ord in ance;
(ii) As of't he dat e ot iss uance ot the Parit y Lien Bonds the Ci ty is current Iii
th e accumula ti on o f all amounts requ ired tu Lt:-then :wc umul ;ned in th e
Bond Accoun t JJ1d 1hc Reserve Accoun t; and
(iii) For any 12 mon:11 period during lhc 18-momh penod imm edia tely
preceding th e dare of issuance of such Pari1y Lien Bonds. the Net Revenue
is su[fo.:icm lu pa y an arnuu 11l n:p 1c ~c 1lli11g 11 u i li:!oo:-. 1ku1 150% uf the
Co mb ined ti.1a.ximum Annua l Principa l and In teres t Requh:111:::n t! fo r the
Ou1s 1a11din~ Bonds, Outs1a ndin g Parity Lien Bonds, if any, and lh e Parity
Lie n Brmds pr opo sed to be is sued . ror purpos e s of such 1cst, if th ere h.1s
bct:n adopted a s,hcdu lc.: of in,rr.:Jscs in rates , fee s and charge s dunng the
precedi ng 18-monlh peri od, lh c Ne t Revenue ~1ay be increa sed fo r th ose
months in whic h such in :rea sc was not in e ffec l for th e 12 month period ,n
which such calcu latio n is made by ad ,~ing to the actu<.11 revenuts for such
penod an estimated sum equ al 10 I 00% ol the est im ated increase in
reve nu es whi c h wnulrl h;wc he-en rc.1li7crl rlun ng sr1 id period had such
inc rease been in effect for 1he en1i re 12-monlh period (the requirement se t
fonh in 1hi s sub parab,ra ph (iii) shall no l app ly 10 an y Parity Lien Bon ds
iss ued fo r 1hc purp ose o f refundi~g less lhan all of1he Ou1s1anding
Bonds), and
(iv) The ordi nan ce . ind ent ure or other documc1~1 pro v1 d111g rnr the iss11:111cc 11 (
tht' Pari ty Li <"n Bonds mu s t provulc for ;, rt'.'-Crvc a r.,:111111 1, whi ch is
established m the :-.n1 o unt o:·1hc P:u ity Rcs~rve Amou nt, and a bo nd
account for Lhc Pi1ri1y Lie n Bonds; 1hc bunt! :1 1:c,•u :11 inu s l be c:a :1 bli shed
~1nJ rn ninw incd o n sul,st,m t1 al ly 1hc ::im c lcrm s :md co nt a111 su bs 1:i.n ti11 1\y
the S.Hlli..'. p rov i :-.10 11s ;1s set r~,rth 1111 t1is O1Uim .JU..l:,
A wn t1 c11 ct.:rt 1\i cnu.: by the U1rcc 10:-of hn:mcc. ;md Ad 1n11 u s1r:111.,,l'
Servic.e s of !he C ity 1h:11 Ilic c"nd 1110 11s set for 11l in pa ragraphs (1). 111 ) :111d
(iii) abov e have been met ::;hall c,:mcl usive ly dc::te nnin c lh:i t Sll l.h i;\11Hl il 1fl n s
ha ve he ·,1 met Ill nccorc!:mce with the te :-111-. he rco r.
{c ) S 11/m,-di11fllC! J.ic11 ll rm .. !.. Sc, Ion, :,s 110 Evc:nt ofDc foul t ii hn11 li.1 vc n cnll rl'<I and ht·
c1111tinu in g, no1h i:1g here in ~l :!'l.l ! r>rcvent lit e C11y fro m i s~uin g Subord111 atc Lien B n11:l i-
S ccti o 11 J.2. l1cfc m!l111 u.:.c. Auy Br111d ~h.,11 nut be dc:em~:d 10 b~ Outstandin g hereunder if it
sht11l h:!ve iJ<.!Cn pai d :ind c.:arn.::clkd or if Defe:1 s:1m.:c Sccu ritic~ !-ha ll have bc:r.:11 dcpus ilc:d in tru s1
1o r th e p:1 ymc11 t thereof (whether upnn or p1inr 10 l hc m;11 uri :y (.\!' such Bone!, but if such 8 1)1HI is
10 be irn id 1>'.'ior t.1 111;itU1 i1y. the C 11 y s hall h;w ,.; given tht.: l1ay111 ; ,1\gc11 1 1rrcvocnb lc d 1rcct 1ons 10
;.,?.1vc noti ce of re e mption as req uired hy thi s Orcl i11:111 cc, o~ s uch 1m11cc sh1ll l:a vc bc..:cn given 111
acco rd,:1h.'C wit h 11 , Ordi11anc1.:). In comptllin g the am ~1un 1 of th e ci c..:p (1sit dt.:sc11hcd :1 bm ·c, tlw
Cit y m:t y .:1 cl uclc 1he ma turir g pnnci pal of :md i11tcrcs 1 10 be ea rn ed 011 1bl' Defeasam::e
Sc·crn iticc:;. If 'e r.:.; tha n all 1hc Hn'.u lc. rtre 10 he cl t:fca:-.cd p ur suant lo th :s Si:cti on . the Ci1 y, in iB
s1.,le di sc rdion. 111a y scll.!c.l whi ch o f th en ids shal l be cl cl P:-i s,·ci
f;~ct ion .;o , J.:\'f llfS o f n cfau lt. Ein.:h ,,f the :(1llm,111ig e\.Clll :1 cont.ti tutcr. a n Event of
Dcl:i ult.
t:1J Nrmpaym e111 nf Priun;,ut or J11u:,-c.,·t. foa il u1c to mnke :my 1n1ymcm ofpli nc:p,tl
of or 11u ercs 1 on the Uoncls when due.
(b) Hrrac/1 or Nm 1p er/orma11cc of lJmic.,·. Breach hy the Ci ty of any nutcrial
covcn;,nt sr;t fort h her ein or fa ilu re by 1hc Cit y to pe rfo nn any 111:ttcrinl dut y imp osc C: on
II hcre u r.<11:r and contin uat io n of such brea ch or f:ii\ur e fo r a JlC riod of 60 d,1ys nft er
n ·r:c ip t hy .he C 11y Atl om ey nf writ ten not ice th crnof fmm the P:i y1 11 g Agent or fr om the
Owners o f m lc:1 s 1 10% of th e aggreg :n c mnount of !h e L1.H1d Oh lig:ui o:,, pro \l irl cd 1h:il
::uc h 60 -cla y p1!r iod ::;h:i ll be ex 1ended so long as the City has commtnl:cd nn d cnnt in u,zs a
g110J fai th effort to remedy such breach :-r fai lure.
(c) ll1111krupt91 M Rccc frcrsllip A n onk r of dcc1c :; by a c,;0 J1I llf' 1,;u111pt..:11.:1:L
JUn sc!1ct1011 llccl a nng the C it y b:mk ru pt un der fed era l bJnkn1pt t.:y l:1w , 1r appo 11:t 1ng a
re ce iv er o f:ill or any ma1cnal port ion o f the Cu y·~ iJs scts or re ven ues 1s .;nt crcd with the
co nse 11t or a:qu1e srcncc u f th e Cit y or is e11 tc1c..:d w1t hou1 lh e c onc.elli n· ;.i cquicsc~n ce c f
the City bu t is not v.i ~tt cd . di scharged or s tay ed wuhin 30 cl:i ys :ificr 11 is r.:ntcrcd.
St·c.r1nn 2 1 He m,•clics for Evt•nt'i of Ocfaulr .
fa) Rem edi es. Upo n th e oc~urren ce :md comi nu.1nc~ o f .:my Evenl of Defa L:lt, Lh e
Own c:-s v f not les s 1h:rn :!5% cf th e aggregate: am ount of 1hc Bond Obligatio n, in cludi ng,
withuut li 111..ita tio11 , a l1u stce 0 1 trustees 1h ere frr ma y pro c.ecd agai ns 1 th e CiL y 10 protect
and to enforce the ri gh1 : of the any Ow1u:rs umh:r th i:i Onlina111.:c by m,rnJ i.imu s.
111j un ct ion or by othc:.r suit, act lo11 or ~pedal pruc t·t:<l itt ~r, in equit y u1 al Jaw, in an y ...:1.1'J1"t
of cv111pt:1 cnt juri sd1ct1 on:
(i ) fo r the pa yment of intere~t on any in stallm ent of principal of an y Bond th at
wa s uol paid when du e al 11,e in1 eres1 rmc borne by such Bond;
(i1 ) for th e s pec ific pe rfo nnan ce of any covcnan ; contai ned herein;
(iii) 10 c11j o111 any act tha t m:iy be un lawful or in vio la tion o f an y l"':ght o f an y
Owner of any Bond ;
(i\') for nny o ther µroper lega l nr equ itable remedy : or
(v i any co mb inai ion of such remedi es or as othcn11isc mn)' be a uth ori ze d hy
appli cable law : provided. how t!ver , 1ha1 acceler.mon o f any amoun t not yet
due on the Bonds accordi ng to their tcn':l s stall not be an availa bl t! rc171eci y.
A.JI such proc eedi ng s at law or in cqu i1y sha ll be mst ilulcd. hrtd and
m:1ii 1tained for the equa l bt:ndil uf .i.l i Owucr s uf Bumh. thc11 Oubtctn J ing.
(b) Failurt• To Pl4rx11 e Rem edies No t u Rclea.\'e: Right:, C11m 11lari,1e The fai lure of
an y Owne r of nny Ou tsrnud ing Bond to proc eed in acc ord an,:e \dth sub sec ti on (a) o f I hi s
Section shall 1101 relie ve the City of an y liabi li1y for fa ilu re to pcrfo nn or carry out i1s
rt ut1 es under tl us O rdma ncc . Eac h ri gnt or pri vilege o f any such Owner (or :rus1cc
therefor) is m a di ti on and is cumulative to any other nght or privilege. m d th e ex erci se
of an y right or pri vil ege by or on behalf of any Owner sha ll not be deemed a waiver of
a.ny ot he r righ t or pri,·ilcgc of such Owr.r r.
Sectio n 22 . Amtndmcnt of Ordinance.
(a) Amendmen t.\' Permitted Without No tice to or Consctll of Ow,rers. TI1 e City
ma ~. wil hout the c nsen1 of or nCJ ti ce to the Ownt:rs vf th e: Boud s. a<lup t unc or more.::
ordinances amen din g or su pplementing 1his Ordinance (whic h ordinan ces sha ll there after
beco me a pail he,eu f) fo r an y one or more or all of 1he fo ll ow ing purposes :
d; h.l cure any ambiguit y or to cure. co rrect or supp lemr:11 : a ny defect or
mcons1 stc11t pro v1s 1on ot tl us Urd 1nancc ;
(i i) w sub_iecl 10 1hi., Ordman ce or pl edge 10 1he pa ymen t o f the 13onds
1.11.JJ iti oual 1c ven uc). prope 11ics 0! c olb Lc ra l;
Li ti) 10 in stitulc or tcm1 inat c a b.Jo k entry regis1ratio n system for th e Domb or
II.> foci li tnte the de:;ignati ou of :1 subst inll e sec uri ties dep os it ory wi th
rc~p ect 10 suc!1 a system .
(iv) 10 maint ain th e 1hcn tx ist in t or to s ec ure :1 hi gher ratin g 1· the 13 ond s by
:my nauonall y rec ogi ti zed sec urni cs rat in £ agency; or
(,) lO make any 01h er change 1ha1 does not r1 a1 eria ll y adver sel y a ffccl he
Owner s ~)f the Bonds.
(h) A n11 ·t1d,,w 11t.,· R,~quiriu,: Nntir.,• 111 and f:on.~tmt nf 01"m irs . F.x ccpl fnr
:i mendmen ls pcnnill cd hy subscc 1io n (a) of thjs Sec ti on, th is Ord !nnnc c rn:iy o nly be
1!1mmdcd (i) by n ordina nce ol the Ci ty nm e!l diug c ~ su ppl emcnti11g thi s Or<li 11ance
(w hi ch, a ''t cr the consell tS rcc1 um:d therefo r, sha ll hc comc .i pn11 hcn:o f); and (i i) w.th the
wriltt:n crn :,ent o f the Owner., o f ni l ea st 66-213°/o of the 8011d Ol>l igntion; prov1cl cd tha 1
r:ny amcnd n:·:nt thm 111;1kes any o f the fo llowi ng cl ::i.nges wi1h rcspccl 10 any Bond sh.:lll
not be c!Tccti .•r wi th ou t the written co11scn t o f the Ow ner JI' s uch Bond : (A) 3 cha nge 111
th e ma111nt y of suc h Bond; (B) a 1cdu c1i on of the i11 1en,s 1 rate on s uch Bo ud ; (C) a
chnnge in th ~ 1cr.Hs of re cl c111pti nn o f such rl oncl ; (D) 3 de lay in thl.! pa y111ent uf' princ ipa l
o f' or it1 tc1c st 011 su~h B\::1d: (E) a rcd11c ti on of the Bo nd Oh li !Jatum 1l1t: consen t of 1hc
Ow nt.:rs of whi ch is i ClJ lll r ed fo r :rn :m1cndmen t to thi s Ordinan ce: or (F) the
c:st:1b li!;hmc nl o f a pr iorny or preference for th e pnymenl uf ;-in y :u11 ou111 due wit h rc:;pcc t
to an y ot h,:r n ond ov er such Oond .
(C) Prn cc,lurc fnr Nntifyi,rg mu/ Obtaining Cnnscnt ,if Ownc ~. W l 1c11cvc1 the
co nsent o f an Owner or O wn ers of Bonds is required und er su bsect ion lb) o f th is Sec ti on.
the City shall mail a nntice 10 such Owner or Ow ners at their addresse s as se t l"on h in the
reg istra tio n boo ks mnin lai ned by the Pay mg Agc nl and to th i:: Umh..:rw·1t cr. wl11 ch nnticc
!-.ha ll bnetly de~crihc 1h e pr<,p 05cC ~1mc nch nem :nvl s1:i tc tl ::H ;i 1.;o py o f th e ,uncnclmc nt .s
on file i11 th e o ffi ce o f th t: City fo r mspcc11011 . Any cnn<.c nl nf ml y Ow 11 e;r n i :my Hon,1
obt::iin cd wi1h rt·!:pcct lo ::in :.t mcndmc nt sh ;\1 1 be in w rit in g ::in d sh,11! be final :mcl not
subj e::.t to wit hdrnwn .1 rc~c bi,ion or modifi cat1 011 for 3 peri od o ! 60 d::iys aflcr it 1s
de li vered to the City un less another 1ime pe ri od is sl ated fo r sud1 purp ti se in th e 1\0l!cc
111 ~1i lcd pwsum.t lo tlti :: s ulJsi;i.:1iv11 .
Scc li on 2 3. Appointment and Duti es of l'aying Age nt. lhf' 11ay111g Agc nl 1dc nll l11.;d m :he ~eCtl(l n
hcreot lilied "Dcli nit 1ons'' 1~ hereby n~poi nt cd ns pa)1111g agent,, !gistrnr and :iu th cnt ica ting ngcnt fo r tl :c
13oncl s unless an d unt il the C it y r emoves it as such .1n d apprn nts .1 ~i..:cc cs~or Paying /i.~cnt , in which event
,uch succe ssor shall au to mat1c:i ll y succeed to lhc duti c" of th e Paymg A~cn ;, hereunder and li.S
r,rcdcccsso r sha ll 1mmedi atdy tum over all it~ rccnrdc:; :-:-£:lrrlin r lh c Ronrl s tn c:;uch 1:11 cr.essn r The
Paying J\gcm shall agree to perform all d·Jti es nnd to tak e all :\etiow: as$i ig.11 cd 10 it hereunder in
::iccorda nec wit h the terulS hereof.
Sc.:i.:li L111 24 . A1 i proval of Rclatcll Ducutul'.Uts . Tlit: Cuum.:i l lu:rel>y rJli fi ~ :.u id appruv::s lht:
Lli strihution nnd use m connecti on wi th 1hc o ffering of the Bonds of the Preliminary O fficia l Stn tcr.1en t
and an U!Ti c wl S1e 1emcn1 rcla :ing 10 the l:lond s; and for n period of one year to llowmg the adop tion of
this Ordin ance, the S:i lc Delegate is arnh ori zcd to execut e th e Sa le Cert 1fic a 1e and the Bo nd Purchase
/\~recmen l. The aµpropriate o ffi cers an d offic ial s o f the City are her eby aut hori zed ai,d <lirec1ed 10
ex ecute ;m un dertaki ng to faci lita te compliance with Sccuri 1ie:; and Exchange C:nmm iss inn Ru ic 1 )c2-12
(\ 7 C F R § 740 l 5c2-12), the Pny in g Agc ni A gr ecm c nl , the Esc row Agreeme nt. il "Tax Comp liance
Cl;1t ifi c~u e" or s11ni !ar ce 11i fi cmc dci;cr ihint,! thl! Ci ty ·~ cxp cct:Hi ons regard ing the use nml 111vcs1111 cnt o f
p roceed~ of the Bo nds and oth c money .,, .rn lnl.c rrw l l(cvcnu c Se rv ice form 803 8-G 1, ith rc~pcct 1n lht
num!s ;.111 J a ll othet docu 111cn1 s au J i.:~1ti fo.:atcs 11c.:..:c:,sary l•I desiia blt: Lu r;ffcc tut1Lc the is s ua 11cc or
ad mini .)tra Lion or the Bonds , the in vest ment of nrocccds o f th e ll onds an d the 1ransac1i o ns con1 cm p la1ed
hereby
Sec1i.Q.Q.2 . Eve nt s Octurrio~ oo Da)"S Tha l Are Not Business Dnys. Excep t as otherw JS e
s pecifi ca ll y pro\'ided her ein with resp ect to a particular pa yment, e·,::n : or action, if an y payment to be
m •Lie her under o r ::in y event or net ion to occ ur hereunder whjch. bl, fo r trus Section. is to be made o r is
to occur o n a d ay that is not a Busincr.s Day, such pa yment , ev ent o r actio n shall in stead be mtidc or
occur on th e next !.Uccced ing dJy thot is n Bu si nc s~ 111\)' with the snmc effect es if it wa s mad e or
oo;un cd o n tl:c da te on which it was orig ina ll y ~d1cdu lcd to be 111ad~ 0 1 occur.
Section 26 . Limitation of Acliuus . hi m.:cor dance with Sec1i on I 1-57-2 12, C.R.S., no lega l or
eq uitab le act ion can be broug ht with respect 10 any legir;lat i\'e act s or proceedi ngs in conne cti on wi 1h the
authoriza ti on of th e BonC:s mo re than J O days alter the aut horization of such sec uri ties
Sectio n "7. Ordinance is Contract with Owners of Bomls nnd lrre11colable . Afte r the Bonds
ha\-c h~cn issued, th:s Ordi nance sha ll be and rema in a co ntract bc rwt:cn the Cit y and 1he Owners o f the
Bo nd s and shall be and remain irr epeala bl e until a ll am.1unts due with res pecl to the Bonds shall be full y
paid. sat is ri cd and disc ha rged and all 01h er obl igal ions of the Ci1y wtth res f CCt to the B0nd s shall have
been ~aL is fi c:d in the :na rmcr prov ided herei n.
Sec11on 28. Headings The hea dings to th e vario us sc:c ti o:ll and su bseclio ns to this Ordinance have
bee n 1nse n cd so lely fo r the convenicn c:e of lhf' renler. :uc n<ir i1 part of this Ord inance ;md sha ll not be
used in any manne r to int erpret thi s Ord in ance.
Section 29 Se\'crnbility It 1s hereby exp ressly declared that i ii prov isions hereof an d thei r
app li cat ion are 1111encied 10 be and are severab le. ln orde.-to im pl emen t suc h inte nt, if a ny provision
hereof or 1hc applicatio n tl:creof is dc tcm1i ned by a co urt or admin.ist ra1ive body to be in vali d or
unenfon:eab le, in who le or in pa11, S\ICh dct cnnir.at ion sha ll not affect. imf)ai r o r i:wn li dmc an y o ther
provision hercol or th e apphca uon of the provision rn (!l!l!Slio n to any other s itu ati on ; an d i f any
rrnvi sion 11c rcof or the appl ica t it n thereof is det ennin~d hy ~ co urt 01 adm ir.i stra ti vc bod y to be va lid or
cnfo rce.1~,le 01tl; if it s ap pli..:ctt io n is li m11cd, it s appl icat ion shall be linli tcd as re qui red to most f11lly
im pk1rn:11l its p u1 pu ::.c .
Section 30. R epeal of lncou sis tent Ordinances, ReMllutions , Bylaws, Rules and Order s. All
ordi nances. reso lu1i ons, by laws. ru les and orders, e r parts th ereof, thnt .i re in co 11 c.1s rc nt wit h nr in cm ,mct
wit h this Ord ina nce, are hereby repeal ed 10 the ex tent of s uch inco nsistcr.cy or confli ct.
SectJorL3 I . Ralifirntion of Prior Action s. All ac tio ns heretofo re tal:cn (not inco nsisten t with the
provisio ns of !his Ordinance , the Enab li r.g Laws <>r the C haner) by the Council or by the officers and
cmp lciyccs o f the City directed towa:d the iss uan ce of th e Bonds fo r the purp oses he re in set forth :i re
herebr ra1i fi cd , ap proved anc confmncd.
Sec tio n 32 . Em ergency Dednrnt inn and Effecti \'c Da te. The Co un ci l has been advised th a t in
ord er fo r the City to secure the low int en:st rn tes cuccntl y present in the ma rk et a11 d avv id a possi bl e
increa se in such ra t~s, ii is necessary to iss ue the Bo nds as soon as possib le::. Thc11.:forc, fu 1 sa id reaso n.
the Co unc il declares th at this ordina nce is nece ssary fo r the immt:J iate preser ,:it ion of publ ic propert y.
ht:a hh. pe .:1ce, or sa fety and a n eme rge ncy ex ists. This Ord in anc..: sha ll be cffcct i•1e im.:ned :atc ly upon
fi na l passngc an d be publi shed w11 hi n st:vcn days nfl cr pu b lic::nio n fo ll owing fi nal pas sag e
lntrod 1.1 ced, read in fu ll , and passed 0 11 fi rst rci.1tl i11 g as an en .:~rgcm.:y ordi1:.'.lncc on the 16th d:,y nf
Ap ril. :!0 12.
Publ is hed hy Ti tl e ::s an Emerge ncv Bill fo: an Ordimmcc in the C11 y's onicia l new spaper on the 20" day
of April. 20 12.
Publi s hed as an Em ergency l:li ll fo r an Ordinance on the Cit y's nfllcial website hcg innin g on th e 18th day
o:' i\pn l, 20 12 for thin y /3 0) days.
Read hy l11lt.: :u: an l::.1nergen cy Ord rnnnce nnc\ pa ssed o n fi nal rea di ng on the 71h clny uf M:.)'i 20 12.
P·.1bl1sbc.::d b ) l lll c.:: in tlu..: C1 1y 's uffici.,I 11ewspap c1 ,ts Emcrgcn c) Ordinilncc No:7-2, Series of 2~ I :!,
0 .1 tl ,e I I th cay of M,,y, 20 I 2.
Puh !is hcd as nn E,ncrgcncy O rd :nan cc.: by 1i1le on 1hi.: City s t.•ffi c ial Wt.'h "-llC hcg i1:11ing 1111 1lw 911' rl.1y of
Moy, 2 12 fo r thi rty (.1 0) day.,
1\TTES T ·
I. Kc , ry Bu sh, Dc ;)Uty C i1 y Clerk af the City of E:lgli;wnrnt, Cc do r:1dn , hereby ~c 11 1fy tbu :he nbovc
;rnd fo rego in g j3 n true copy C"lf t:ic Emergency O rd ma ne e pn:,si;d o n fin :il rc:1d ing :111d publi sht!U b y l it le
n:; Orcl innn cc No . ·kb Series of 2012 .
APPENDlXA
FORM OF BOND
UNJT EO STATES OF AMl:R.ICA
STATE OF COLORADO
CITY OF ENGLEWOOD , COLORADO
Acting By and Through lt s
STORM WATER ENTERPRISE
STORM W1\TER ENTERPRISE REVENUE BO1\'D , SERIES 2012
No. R
Interest Rate
%
REGISTERED <''' ER:
PRJNCIPAL SUM :
Maturity Date Original Dated Datt
Ce de & Co .
Tax Id enti fica ti on N umb er: 13-25551 19
·•DOLLARS '"
$ __ _
CUSIP
293065
The City of' Englewo od, Colorado, a duly organized and validly existing hone-ru le
mwlic ipality of the State of Co lorado, for va lue re ce ived , hereby prom ises to pay to th e order of
the re gis te red owner n micd above, or registered assig ns, the pri nci pal sum stated above on the
ma turity d Nc ;tated above , with int eres t on such principal swn from tb e orig in al dat ed date sta te d
above at tH C int eres t rate per annum stated above (calcul ated based on a ]60-day year of twelve
30 -dny months), pnynb lc on ____ and ____ of coc h yea r, co mm enci ng ___ _
Cap itali ze d te rms used but not defin ed in thi s bond shal l have th e mea nin g ass ig:1cd to them in
the Ordin a nce o f the Cit y auth oriz ing the iss uance of th e Bond s.
The prin cipa l o f :u1d interest on thi s bond is pay able 10 th e reg is te red 0"~1cr hereof up on
prese nt at io n and su rr en dn of thi s bond at th e prin cip al operations office of UMB Bank , r,.a ., as
pciying agc11t , i11 Dt~11 vl"!r, Co lo1aU o, ur al sud1 otltcr office uf the;: Pay ing Age nt des ignated by the
Pay ing Agent for such purpose . Inter est on this bond is payable hy chec k or draft o f th e Pa yi ng
Agen t ma il ed o n th e lJ1t ercs t Paymen t Date to :he regi stered owner hereo f as of th e [fi ftee nth day
of the mo nth immediatel y preced in g] [fi rs t da y o f] lhe month (w heth ~r or not such day is a
Bu sin ess Da y) in wlli ch th e. Interes t Payme nt Dat e oc~ur s; prnv i<le<l th at , in teres t paya hl e I n th e
regis tcr~d 0wncr o f thi s bo nd may be paid by any ot her mea ns agreed to by suc h regis tered
owne r and the Pay in g Ager;· th at docs not req uire the Cit y to mak e moneys avai lab le to the
Paying Agen t ea rl ier 1han oth erwise requ ired under th e Ordinan ce or in crease the costs borne by
;he Ci ty und er th e Ordin ance ; provi ded further , th at, so long as Cede & Co . is the registere d
ow ner of thi s bond, 1he princ ipa l of and inte res t on thi s bo nd sha ll be p1i d 'Jy wi re tra nsfer to
Cede&. Co. Any pay ment of prin cipa l of or ic .,er es1 on th is bo nd th at ·s due on a day tha t is nol ci
f\11 ,i11 e ss Day sha ll he made on the next me ced in g da y that is a Bu s iness [)ay wit h the same
effect c,; if mnde on th e day on whi ch it was ori gi nall y sche du led to be m ade. All pay ment s cf
p1i11 cip<1 I of m,J i:i t,·1cs 1 on th is bond sh;,11 be made in lawful 1n uncy of the Uni te d States of
,'\mt.:ra:a .
T his bo nd is part 01 an issue of gc11 ~ral obli ga tio n refundi ng bond s of the City designa ted
1h c Ci ty of En g'.ew oPc', Cr,lnrarlo. Sto rm W.i tcr Rc vc rrn c Refundinu 1'n nds, Scr i1!'-J (l 12, iss ul:d
in 1h c: pr in ~ipnl amour ,l t,f $ ____ (th e ''rl nnd t:11
). Th e B(Jnd .; h:ivc been ir:~aic d pur::u,111 . to,
un de r the auth ority of, and in fu ll confnn11 ity with , :li t.: Chart1;r , the Co11 stitu tio11 and th~ l;1w:,; ur
th e Slat e. mc.l11 di ng. in p:,nic ula r, l'a11 2 of .'\rt iclc 57 o f Tille I I , Co lorad o l<ev isc d Stn1 111 cs
\co lk c1 ivc ly. th e "/\ct"): and pu1. uant to a ordi nance ado~t ed by th e C ity Counci l ,11' the City.
Tl I E Ol<D I N/\NCE CONST ITUTES T HE <:'O NTR ACT AET WF.F:N TH I·'. ll l •:(;1~TFl<F.D
(J W N r:rz O f' TH I S BOND AND TH E CITY. TH IS BOND IS ON LY EV ID ENCE OF SLCH
CONTR .'\C'I' 1\1~1). ,",S SUC H, IS SUBJE CT IN /\LL R.ESl'F.cr s TO TH E T l:RM S OF TH E
O Rl)IN/\NCE, WIIJ CH SU l'l~K~l ·'.IJI ·.~ AN Y INCO NS IS TEVr STA TEMbN T IN T HIS
::lON D
T :1c princ ipal of. premium ir any, nnd int erest on thi s Hnnd arc pa ynhk on ly rwt rJ f: (;1) ;i
special acCl1Unt dcsig.nat cd as lhc 11 00ml Accountt into whic h the Ci ty covcn::i.nt:; .ind ng rc.:cs to
deposi t, from the revenues ,lcrivccl fr om the 11 pcrJti on d' the wal er fa ci liti es co 111 pr;si 11~ tl:t
Storm Wa ter Ent crpri:;e a ft er dcdu c11o n nf npcra:inn s and main tenance cos ts (the ''f\lc t
Reven ue''), am o unt s sul'l icii,nt to pa y th e prin cipa l of nnd int eres t on th e Bonds whe n the sa me
beco me. due :i ml pn y~hl e; :ind (b) i r nec ess ary, .1 special accou nt d~s ig,nntcd ns 1hl' 1-Res~rvc
Ac c uw1 t," all as more particu larl y se t fo rt h in th e Bond Ordin ance . The Cl ond s s li nll constitu lc
an irrevocab le an d fir st li en up o n th e Net Reve nu e, bu t 1101 m·cc ssarily an excl usive s uc h lien .
SubJccl to ex pressed cond iti ons, obl iga tions in add ition 10 the Bond s of thi s issue ma y be issue d
anrl made. payable fro m the Ne t Rev e nu e havi ng n hen th ereon s ub ord ina te and junior to th e lien
of the Bond s of thi s iss ue o r, s ubj ect to adJiti on:d expre sse d co nd itions, having a lien on the Net
l{evcnuc 011 a par it y with the lien of th e Bon ds of thi s issue, in acco rdance with th e pro visions of
the Bond Ordinance .
[T he redemption provisions from Sec ti on 4 of the Ordinance and th e Sa le Cc rt i ficmc
s ha ll ',e se t fo nh he rein.]
No ti ce of uny recempt ion of Clon ds shall be give n by th e l'aying Agent :n th e na me of the
City by sending a copy or s uch nGti cc by fir st class , pos 1.~ge prepaid ma il , not more than 60 days
11or less than 30 days pr ior to the redem pt ion da te, to th e Own er o f c.1ch !3o nd be ing red eemed.
S uch no ti ce shal l s pecify th~ 11nmbcr or 1111mh 1·,, nf tb c Ronrl s s0 to be reJ eeir,c<l (i f rede mpt ion
shall be in part) and th e redempti on dat e. If an y. lun d s hall ho,c ,cen dul y ca ll ed for rc d-,mpti o11
and if, 011 or befo re the rn dernpti u11 date , lh crc sl!a ll lr.,,c uc cn dcp~s,ted with the Pay in g Age nt
in accorda nce wi th th e Ordi nan ce funds sufficien t to pay the rede mpti on price of suc h 13ond 011
th e rede m pti on date . th e n s uch Bond shal l bec ome du e and pa ya ble al such redemp:i on da te, and
from and a fter suc h d ate int eres t wi ll cease to accnie thereon . Fnilnrc· to de li ver any rcde mp1i o11
notice or a ny d:fcct in any redempti on not ice sha ll not affect th e "n li dity of d1 c pro ceed ing fo r
the redemption o f Bond , with res pect to wh ich such fa ilur e 0 1 Jefec1 did not occ ur. Any BunJ
re deemed pri or to it s matu rity hy prio r red empt ion or otherw ise sha ll no t be reis sued and s hall be
can ce ll ed .
A-2
The Pa yin g Age nt shall maintain re gistrati on books in wh ic h the ownershi p, trans fe r an d
exc hange o f Bonds shall be reco rded . Th e persu n in whose name th.i s bo nd sha ll be registered on
such registrati on books sha ll be dee med to be the abso lut e ow ner he reof fo r all purp oses , wh ether
or not pay ment on thi s bond sha ll be overd ue, an d neither the Cit y nor the Pa ying Age nt shall be
a ffe cted by any notice or ot her informatio n to the co ntrar y.
T his bond rn a:1 be transferred or exchan ged at the prin cipal office of th e Pay ing Age nt in
Denve r, Co lorado. or at such oth er office of the Pa yin g Age nt desig nated by th e Pay in g Agen t
fN s uch pu rp ose fo r a like agg regate prin c ipal amoun t of Bonds of ot her au th oriz e.d
dcnom inati or.s ($5 ,000 or any int egral multipl e th ereoi) of the sa me maturi ty and intere st rate,
upo n pay ment by th e tra nsfer ee (If a reasona ble transi'e r foe estab lished by the Pay in g Age nt .
togeth er wi th any tax 0t gove rrunental charge requ ire d to be pa id with re spect to such tran sfe r or
~,change :m d any cos t of pr int in g bonds in co nn ec ti on :herewith . Up on surr ende r fo r tran sfer of
uny Bond dul y andorse d for tr ansfe r or accompan ied by an assignment duly ex ecut ed by th e
Owne r o r hi s or her attorne y dul y autho ri zed in writin g, the C it y shall exec ute and th e Pa yin g
Age nt shall auth en ticat e and del ive r in the nam e of the tran sfe ree a ne w Bond. No twithstun c in g
any oth e r prov ision of th e Ordinan ce , th e Pay in g Age nt sha ll not be requ ired to t~an sfcr an y
Bo nd (a) whi c h is schedul ed to be re dee med in wh oie or in purt between the Bu sin ess Da y
im med iate ly prece di ng th e mailing o f th e :i oti ce of rede mpt ion and th e ,edemption da t . ,,r
(h) be twee n th e Record Date for any Int ere st Pay rr.e nt Da te and such In terest Pay ment Oak
The Ordinance may be amend ed or suppl ement ed fr om ti.me to time witJ, or ,v ith out the
co n se nt of th e regis tcrd owners of the Bon ds as pro vid ed in the Ordin ance.
It is hereby cc :1 ifi ed that al l cond it io ns, acts and thing s req uir ed by th e Ch,.•.e r, the
Co nstitution and laws of the State, in c lud ing the Ac t, and th e ordinances of the C ity , to exi st, to
happen and to be per for med , prece dent to and in the iss uance of this bo nd , exis t, ha ve hap pene d
and have been perfo m1ed, and that nei th er this bond nor th e other bond s of th e iss ue o f whi ch
this bond is a part exceed a··y limit a ti ons prescr ib ed by th e Charter, the Co nstitution or laws of
th e Stnt.e, in clud ing th e Act, or the ordinances of the City.
Th is bond shall no t be ent itl ed to any be ne fit untl cr th e Ordin ance , or become va li d or
o bligatory fo r any pur pose, unti l the Pay ing Agent shall ha ve si gned th e ce rtificate of
outh enticntion hereo n.
rN WITNES S WHERE OF , the C ity Cou nci l of th e City ha s caused thi s bo nd to be
c,:cc uled wit h th e signature of it s IVl ayo r ,md ancs tcd by th e sign atu re of its City Clerk , and has
caused th e sco l of th e Cit y to be impressed or im prin ted hereon, ull ns of th e dn tc se t fo rth bclt,w.
fClT Y SEA L] THI? CIT Y OF ENG LE WC J D
By
May or
An esi :
By _____________ _
C it y Clerk
CF.RTll'IC/.Tf,, rw AI ITHf<:NTICATION
Thi s b011ci i" "nc o r the bonds or th e iss ue des cr i er! in the wi thin me:lli onc ci Ordinance.
Da 1cd : __________ _
l.'ML1 IJAN K, N.A., llS Payi ng A.ge m
fJy
Au'.hori zr d Signat ory
Al'l'IWVINt; I F:r.AL Ol'INION
Sc i io nh belo w is " tn 1e co py of the approv i"g le gal o pini on of Kutak Rock LLP .
deli vere d on the dnk on wl~ich the.: Bcm df.i were or igin nlly i.;:;ucd: fThc fonn or li.;gu l opinion or
Bo nd Cou nsel sh all be set rurth h~rc.] [, the un dersigned Cit y C ieri-<l f :he it y of En glcwoon.
Colorn cio , do he reby ccni fy th m the fo rego in ~ app roving opi ni on o ! Ku tak Rock I.L I'. Den ve r.
Co lornd o. i~ a tru e and comple te co py of,, nn nu al ly exc:ute d and dat ed co py th ereof on fil e in
th e offi cia l recll rd s of th e C ity
By facs imil e s i;...,•n~a,,.tt"'11"'·(,.,_) ___ _
Ci ly C:lrrk
ASS I GNMENT
"OR V /\ I.LI I•: R l'.C" Yi-:11 the uncic rsig,·,cn he ir.by sel ls, a,sic ns anci tr ans fers unt o
(Plea se pr int o r typew cite na111e and add r?.ss of T r::nsfere eJ
(Tax Id entificat ion or Social Secur it y No .·,
the· within 1io nd :md all rig ht s th ere un der, and hcr chy irrevnca bl y consti tul cs and appo int s
_________ ntto m cy to tra nsfe r the wit hi11 bond on the hoo ks k ep i fo r reg istra tion
1hcrc.or, wi th fo ll power of subs titution in the pr emises .
Dn icd: __________ _
S ignoturc G uo ro ntccd:
Sig ,rn tur c(s) mu c:t be g uaranteed by o
oatiuna l i.nmk ur tru st ,,;uni pa11y u1 Uy t1
brok era g• firm hav ing a ~1ernber shi p m orn,
,f th e maj o r stock ex clrnngc s.
NU rl C E: ·1 he signa:ure lo 1hi s ass ignm e nt mu st
correspond with th e nam e as it app ea rs up n the
f:H:.c nf th e with in b:rnd in every p;1;·ticu]m .
wi th oul altcrn 1ion or cnl argcmc11 1 n r n11 ·,1 change
,,.1 ha1e ,·e r.
l'R ANS FER rEE MAY llE RE 1UI RED
/\-4
COUNCIL COMMUNICATI ON
D ate: Age nda Item: Subjecl: --7
Ap ril 16, "o I ~ 1 1 ;i i1i An Eme rgen•:y Dill for an O rdin an ce Autho rizin g I
The Issuan ce ol Storm V\la ler Ent erpr i~e Re ,1enoi?
Refundin s Bonds Se ries 2012
Initia l ed Hy: I Slaff Sou rce:
F1n rinc e ;i nd Ad 1111ru stra t1 ve Se1v 1c e~ Deparlmcnl Frank Gryg lew1cz. Di rec tor
COUNCIL GOAL AND PREV IOUS COUNCI L ACT ION
Cit y Cou nci l h~1:> not tctke 11 d fl )' (u r111,il dt..liun rega rdin ~ th e i~~Udl 1L~ ui 11l e~e 1dund 111 g bonds , Out thl'
sub jec t was d isc usse d w it h C ity Council at th e st udy sess ion on Apri l 9, 20 I 2 .
RECOMMEND[D ACTIO'I
S1Jii recomm ends Coun cil app rov•: th e .i tt ache<l bill ior an orcfin r1n ce aut hori i'ing the rss uance of Storm
\•Va tc:r 1:nt crp risc Reven ue Rcft1 nd1ng Bonds, Seri es 0 1 ~O 12. The proceeds fr om th e sa le of these bon ds
wi ll be used to refinance th e Cit y's Stor m Wa te, En 1erpr ise Re1,enue Bonds, Se li es 200 1 to lov.ie 1 in teres t
rates .
Th i s em erg ency bill fo r ordi n ance authorrzes th e rs suan ce of the bo nd s. provid es for th e for m of th e bonds
and o ther dc r.1 il s i·r con nec ti o n to the ·ssu an ce o f the bonds.
BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENT IFIED
In "'00 1, thP Ci ty nf Fng lewood approved the issua nce of SI 675 milli on in Stor m \\'ater Reven ue Bond!;
The Crty of Engle wood us ed the bond procee ds for imp rove ments to th e Ci ty's St or m Wa ter sys tem .
Curr ent ly, $1,0JU,IIIJU rn aggregate princrpal is o utsta ndin g and bear i nte res t at rat es between 4.'IU and
::;,10 r.:ercenl Th e igg rp g;;tp prinri pi\l nf thP. rP f11 nrlin g hnnrl (, (,hi\ll nol e):IPP d ~ 1 I milli nn, lh P fin~I
maturity wrll not e,t ~nd l:,eyond D ecember 3 1, 202 1, and th e net effec ti ve i nter est rate will 110 1 exceed
3.25 ~erce nt.
Cit y staff be lieves 11 ,s ,n 1he b es t interes t of th e Ci ty l o refinance th rs debt 10 lower interes t ra t es. Th i s w ill
red uce deb t se rvice pay ment s and redu ce th e fee s chMge d to 0 1I zens fo r the w;1ste w.11 er sys tem . The
es tim ated prese nt va lue sav in gs is $1 07,825 and 1he percen tage savings of th e reh,r ld eo bond ~ Is 10 4i
p rce nt.
Th is bill for an o rdin ance 1:-. being passed b~1 energency ordina,ce so th e honds can be issued as qui ck ly as
po,sibl e to red•1ce I ,e p ossibrlr ty o f rntcrest rate chan ges as we ll as p o1s ibly 1n d11 crng more rr westor i nteres t
in pur ~basing [he bo nd s.
Fl,\/ANCIAL IMPACT
Thi~ ac ti u11 ~huu lU 11 m have a di rec t 111 11.1t1rt on the Ci ty's fin ancia l co nditi on, as H,e deb t serv ic e
req uirement s are fu nd ed by fees co!l ectc d from Storm Water csers but ii shou ld reduce the fee s c iti zens
pay in th e fu rurt .
LI ST OF ATTAC HMENTS
Pr opo;ed bill fo r an ordinc1 nce