HomeMy WebLinkAbout1960 Ordinance No. 002Introduced as a Bill by Councilman Martin
BY AUTHORITY
ORDIN ANCE NO. 2 SERIES OF 1960
FOR AN ORDINANCE AUTH ORIZING THE ISSUANCE OF SEWER REVENUE BONDS OF THE
CITY OF ENGLEWOOD, COLORADO, IN THE PRINCIPAL AMOUNT OF $400,000; PRE-
SCRIBING THE FORM AN D PROVIDING FOR THE PAYMENT OF SAID BONDS AND THE IN-
TEREST THEREON.
HEREAS, the City of Englewood, Arapahoe County, Colorado, now
owns and operates a sanitary sewer gathering and disposal system; and
WHEREAS, the sewage disposal plant is insufficient to meet the
current and growing needs of the City and its inhabitants, and the en-
largement and improvement of said plant is imperatively necessary; and
WHEREAS, the City has heretofore issued and there are now out-
standing sewer revenue bonds of the City dated October 1, 1952, in the
amount of $654,000, and in the amount of $40,000, dated August 1, 1954; and
WHEREAS, the net income derived and to be derived by the City
from the operation of its sewer system may be pledged to the payment of
the principal of and interest on the Revenue Bonds hereinafter authorized,
subject only to the payment of the principal and interest on said outstand-
in2 sewer revenue bonds dated October 1, 1952 and August 1, 1954; and
WHEREAS, in order to meet the costs of enlarging and improving
the sewage disposal plant and for the costs and expenses incident thereto,
the City Council has determined to issue Sewer Revenue Bonds of the City
in the amount of $400,000, paya ble , principal and int~rest from, and as
a second lien on, the net revenues derived and to be derived from the opera-
tion of its sewer system, pursuant to and in accordance with the provisions
of Chapter 139, Article 52, Colorado Revised Statutes 1953, and the Charter
of said City ; and
WHEREAS, said amount of bonds, after public notice of sale, has
been awarded to Coughlin and Company, Inc. and Associates of Denver,
Colorado, the highest and best bidders, for cash at not less than par and
accrued interest ;
THEREFORE, BE IT ORD AINED BY THE CITY COUNCIL OF THE CITY OF
ENGLEWOOD, COLORADO:
Section 1. That for the purpose of enlarging and improving its
sewage disposal plant, including all necessary or appropriate land, mach-
inery, equipment, appurtenances and incidentals, and to pay the costs and
expenses incident thereto, there are hereby authorized Sewer Revenue Bonds,
Series February 1, 1960, of the City of Englewood .in the amount of $400,000,
both the principal thereof and the interest thereon to be payable solely
and only out of the net revenue to be derived by the City from and through
the operation of said system , subject only to the payment of the principal
of and interest on outstanding Sewer Revenue Bonds of the City, dated
October 1, 1952 and August 1, 1954.
Section 2. That said bonds hereby authorized shall be dated
February 1, 1960, shall be in the denomination of $1,000 each, shall be
payable to bearer, shall bear interest payable semi-annually on the 1st
day of February and the 1st day of August each year, and shall have coupons
attached thereto, signed with the facsimile signature of the City Treasurer,
evidencing said interest . Said bonds shall be signed by the Mayor, with the
seal of the City ther eto affixed, attested and countersigned by the City
Clerk and Treasurer. Should any officer whose signature or facsimile sig-
nature appears on said bonds, or the coupons thereto attached, cease to be
such officer before delivery of the bonds to the purchaser, such signature
shall nevertheless be valid and sufficient for all purposes.
Both principal o f and interest on said bonds shall be payable in
lawful money of the United States of Americ a at the office of the City
Treasurer, in Englewood, Colorado .
S~id bonds shall be numbered consecutively from 1 to 400, inclu-
sive, shall mature on February 1, and shall bear interest,as follows:
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Amount Maturity Interest Rate
$5,000 1961 4!%
5,000 1962 4
10,000 1963 4
10,000 1964 4
10,000 1965 4
10,000 1966 4
10,000 1967 4
15,000 1968 4
15,000 1969
41 15,000 1970 4 ·
15,000 1971 4
15,000 1972 4
15,000 1973 4
20,000 1974 4.4
20,000 1975 4.4
20,000 1976 4.4
20,000 1977 4.4
20,000 1978 4.4
25,000 1979 4.4
25,000 1980 4.4
2 5,000 1981 4.4
25,000 1982 4.4
25,000 1983 4.4
2 5,000 1984 4.4
Bonds matur ing on or before February 1, 1970, are redeemable at
the option of the C ity six months prior to their respective maturity dates
at par, accrued interest, plus a premium of six months' interest at the
rate specified in the coupons attached to the bond or bonds being called
for redemption. Bonds maturing in the years 1971 and thereafter are re-
deemable at the opt ion of the City on February 1, 1970, and on interest
payment dates thereafter in the inverse order of their numbers, at par,
accrued interest and p remiums as follows: if redeemed on February 1, 1970,
to and including Aug ust 1, 1974, at 3 % of principal; if redeemed on
Februa ry 1, 1975, to and including August 1, 1979, at 2% of principal; if
redeemed on and after February 1, 1980, at par and accrued interest only.
If the C i ty shall elect to redeem any part or all of said bonds,
prior to maturity, notice thereof shall be given by publishing a notice
in a newspaper of general circulation in the City, and in a newspaper of
general circulation in Denver, Colorado. Such publications shall occur
not less than thirty (30) days nor more than forty (40) days prior to the
time fixed for the redemption and payment of such bonds. Copies of all
such published notices shall be mailed by the Treasurer of the City to
the ori g inal purchaser of said bonds.
Section 3 . Said Sewer Revenue Bonds and the interest c oupons
thereto attached shall be in substantially the following form, to-wit:
UNITED STATES OF AMERICA
STATE OF COLORADO COUNTY OF ARAPAHOE
C IT Y OF ENGLEWOOD
SEWER REVENUE BOND, SERIES FEBRUARY 1, 1960
No. $1,000
The City of Englewood , in the County of Arapahoe and State of
Colorado, for value recei ve d, hereby p romises to pay to the bearer hereof,
out of the special fund her ei ·~aft er designated, but not otherwise, the
sum of
ON E THOUSAND DOLLARS
in lawful mone y of the Unite d States of America, on the :st day of February,
19 , with interest thereon from date until paid at the rate of
per centum ( %) per a nnum, paya ble semi-annually on the 1-s...,.t_d,,_a_y_o_f~-
February and the 1st day of Au g ust each year, both principal and interest
being payable at the office of the City Treasurer, in Englewood, Colorado,
upon presentation and sur render o f the annexed coupons and this Bond as
they severally become due.
Bonds of this issue mat urin g on or before February 1, 1970, are
redeemable at the option of the City six months prior to their respective
maturity dates at par, accrue d interest , plus a premium of six months'
interest at the rate specif ied in t he coupons attached to the bond or bonds
being called for redempt ion. Bonds mat uring in the years 1971 and there-
after are redeemable at the option o f the City on February 1, 1970, and
on interest payment dates thereafter in the inverse order of their numbers,
at par, accrued interest and premiums as follows: if redeemed on February
l, 1970, to and includi n g August 1, 1974, at 3% of principal; if redeemed
on February 1, 1975, to and including August 1, 1979, at2% of principal;
if redeemed on and after February 1, 1980, at par and accrued interest only.
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This Bond is issued by the City of Englewood for the purpose
of enlarging and improving the sewage disposal plant for said City and
its inhabitants, all in conformity with Chapter 139, Article 52,
Colorado Revised Statutes 1953, the Charter of said City, and pursuant
to an Ordinance of t h e City duly enacted and adopted prior to the issuance
hereof, and both the principal of this Bond and the interest hereon are
payable solely out of a special fund created in full conformity with law
and designated the "Sewer Revenue Bond Fund, Series February 1, 1960",
of said City as provi ded in said Ordinance. This Bond does not constitute
a debt of the City of Englewood within the meaning of any constitutional,
statutory or Charter limitation.
· It is hereby certified, recited and warranted that for the pay-
ment of this Bond the City of Englewood has created and will maintain said
Fund and will deposit therein, out of the revenue of its sewer system, the
amounts and revenue specified in said Ordinance, and out of said Fund, and
as an irrevocable charge thereon, will pay this Bond and the interest
hereon, in the manner provided by said Ordinance, subject however to the
payments required by Ordinances of the City authorizing its outstanding
Sewer Revenue Bonds dated October 1, 1952, and August 1, 195_4.
It is further recited and certified that all requirements of law
and all conditions precedent have been fully complied with by the proper
officers of said City in the issuance of this Bond.
IN TESTIMONY WHEREOF, the City of Englewood, Colorado, has caused
this Bond to be signed by its Mayor, sealed with the seal of the City,
attested and countersigned by its City Clerk and Treasurer, and the interest
coupons hereto annexe d to be signed with the facsimile signature of the City
Treasurer, as of the 1st day of February, 1960.
Mayor
( S E A L )
ATTESTED AND COUNTE RSIGNED:
City Clerk and Treasurer
No.
On tbe 1st day of
coupon is attached has been
Englewood, in the County of
bearer hereof
(Form of Coupon)
$ __ _
r~~~~try, 19 , unless the bond to which this
called' for prior redemption, the City of
Arapahoe and State of Colorado, will pay to
DOLLARS
in lawful money of the United States of America, at the office of the
City Treasurer, in Englewood, Colorado, out of the Sewer Revenue Bond
Fund, Series February 1, 1960, of said City, but not otherwise, being
six months' interest on its Sewer Revenue Bond, Series February 1, 1960,
dated February 1, 1960, bearing
No.
(Facsimile Signature)
City-Treasurer
Section 4. Said bonds shall be issued and sold for cash at not
less than par, solely to provide the City with moneys for the purposes
therein specified, but neither the purchasers of said bonds nor the sub-
sequent holder of any of them shall be responsible for the application of
disposal by the City or any of its officers of the funds derived from the
sale thereof. The issuance of said bonds by the City shall constitute a
warranty by and on behalf of the City, for the benefit of each and every
holder of said bonds, that said bonds have been issued for a valuable
consideration in full conformity with the law.
Section 5 . The principal of and interest on said bonds shall
be payable out of the Sewer Revenue Bond Fund, Series February 1, 1960,
specified in this Ordinance. The term "s ewer system" as herein used,
shall include not only the property comprising said sewer system at the
present time, but all additions and betterments thereto and improvements
and extensions hereafter con structed or acquired by the City.
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Section 6. All of the income and revenue to be derived by the
City from the operation of its sewer system shall be deposited in a fund
to be kept separate and apart from all other funds of the City. Such in-
come revenue shall be known as and termed the "gross revenue" of said
sewer system and such revenue is hereby irrevocably pledged for the follow-
ing purposes and shall be accumulated and disbursed in the following order:
(a) For all necessary and proper costs and expenses of
the efficient and economical operation and maintenance of sa•id sewer
system.
(b) To meet the requirements of the Ordinances of said
City authorizing outstanding Sewer Revenue Bonds of the City dated October
1, 1952 and August 1, 1954.
(c) There shall be deposited in a fund to be known as the
"Sewer Revenue Bond Fund, Series February 1, 1960", amounts sufficient for
the prompt payment of the interest on and the principal of Bonds when and
as the same shall become due and payable, respectively. The owners and
holders of said bonds shall have a lien on all of the net revenues of said
system after providing for the payments required by Ordinances of the City
authorizing said outstanding Sewer Revenue Bonds.
(d) Commenci n g February 1, 1960, and monthly thereafter,
there shall be deposited in said Sewer Revenue Bond Fund, Series February
1, 1960, l/6th of the amount necessary to pay the next maturing installment
of interest on all of the bonds authorized herein.
(e) Commencing February 1, 1960, and monthly thereafter
there shall be deposited in said Bond Fund l/12th of the amount necessary
to pay the next maturing installment of principal of the bonds authorized
herein.
(f) After the foregoing payments and deposits have been
made and after full compliance with subdivisions (a), (b), (c), (d) and
(e) of this Section 6, all of the remaining income and revenues of the
system shall be deposited in a separate f und to be known as "Reserve
Fund, Series February 1, 1960", and shall be established in the amount
of $35,000 and created in said amo un t by monthly payments beginning
February 1, 1960, and continuing not longer than February 1, 1965. The
money in the Reserve Fun d, Series February 1, 1960, may be used to pre-
vent defaults in the payment of the Bonds autbo~ized herein, and interest
thereon, and if money be used for such purpose, it shall be restored to
said Fund as soon thereafter as possible. The Reserve Fund, Series
February 1, 1960, shall be maintained at $3~1 000 until such time as the
amount therein will be sufficient to pay all of the said Sewer Revenue
Bonds, Series February 1, 1960, outstanding and the interest thereon.
By order of the City Council , moneys in the Reserve Fund may be invested
in United States Government bonds or securities.
(g) When said Reserve Fund contains $35,000 and all other
requirements hereof have been fulfilled, all remaining revenues of said
sewer system may be disbursed for the improvement or extension of the
sewage disposal plant and the s ew er system o f the City, or for the redemp-
tion of the hon "~' c)f th i i::. issue at a price no t greater than the call price,
and for no other purpose whatsoever.
Section 7. The City hereby furth er irrevocably covenants and
agrees with each and every holder of Sewer Revenue Bonds, Series Febrqary
1, 1960, issued unde r the provisions of this Ordinance, that so long as
any of said bonds remain outstanding:
(a) I t will continue to operate and manage its sewer system
in an efficient and economical manner and keep and maintain separate accounts
of the receipts and disbursements thereof in such manner that the revenues
thereof, payable into sa id Revenue Bond Fund, ·series February 1, 1960, may
at all times be readily and accurately determined.
(b) It will, through approp riate action of its Council,
maintain and enforce a schedule of rates and charges for sewer services
furnished by said system sufficient to pay all costs of operating and
maintaining said system and to provide net annual income in an amount
equal to at least 1.3 times the annual debt service requirements on the
bonds authorized herein .
(c) It will not sell or alienate any of the property con-
stituting any part, or all of said system , in any manner or to any extent
as might reduce the security provided for the payment of the Sewer Revenue
Bonds authorized herein .
(d) At regular periods each y ear, it will render bills
for sewer services furnished, such bills to appear on and be a part of
water bills rendered by the City. Until paid, all sewer rates and charges
shall constitute a lien on the property served, and the City shall take
whatever action is legally pern1issible promptly to enforce and collect de-
linquent sewer charges and liens, and it shall shut off water service from
property delinquent in the payment of such rates and charges.
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(e) It will maintain proper books and accounts showing
receipts and disburseme nts of the sewer department of the City, and it
will, not later than the first quarter of each year, cause to be prepared
an operating statement of the sewer department, such statement to be filed
in the office of the City Clerk, to be available at all reasonable times
for examination by any holder or holders of the bonds authorized herein.
(!) It will carry workmen's compensation, public liability
and other forms of insurance on insurable sewer property, in such amounts
as will protect said system and its operation.
(g) I t will furnish no free sewer service, and if it
elects to use sewer services for municipal purposes, it will make pro-
vision to pay therefor at the same rate as is charged others for like
or similar service.
(h) For the protection of the health of the inhabitants
of the C i ty, it will, by appropriate action, compel all the owners of
occupied properties capable of being served by said sewer system to con-
nect their premises with such system.
Section 8. That nothing in this Ordinance shall be construed
in such manner as to prevent the issuance by the City of Englewood of
additional bonds payable from the income derived from the operation of
its sewer system, provided however, that while any of the bonds autho-
rized by this Ordinance are outstanding, the City shall not issue any
additional bonds payable from the income of the sewer system and having a
lien on such income prior or superior to the lien of the bonds authorized
herein, and no additional bonds shall be issued having a lien on such income
on a parit y with the lien of the bonds authorized herein unless:
(a) The City has complied with all the covenants and pro-
visions of this Ordinance and is current in the payments and accumulations
required herein.
(b) The Ordinance authorizing such additional bonds shall
contain covenants for the protection of the bondholders substantially
similar to the covenants contained herein.
(c) The revenues of the system for the fiscal year immedia-
tely preceding the issuance of such additional bonds, after payment of
maintenance and operation expenses, shall have been equal to 1.4 times the
combined maximum annual requirements for principal and interest on all out-
standing sewer revenue bonds, and 1.4 times the combined maximum annual
principal and interest requirements on the bonds proposed to be issued.
otbing herein shall prevent the issuance of junior or inferior lien bonds.
Section 9. All costs and expenses incurred in connection with
the issuance and payment of the bonds authorized hrerin sha ll be paid
exclusively from the revenue of said sewer system, and in no event shall
any of such costs or expenses, or the principal of or interest on said
bonds be paid out of or charged to the general funds or tax levies of said
City.
Section 10. All ordinances or parts thereof in conflict herewith
are hereby repealed. In the event that any part or provision of this Ordi-
nance should be judicially held invalid or unenforceable, such ruling shall
not affect the remaining parts and provisions hereof, the intention being
that each part and provision is severable.
Section 11. This Ordinance, after its final passage, shall be
recorded in a book kept for that purpose; shall be authenticated by the
signatures o f the Mayor and City Clerk; shall be published as provided in
the Charger of the City; and after becoming effective, shall be irrepeal-
able until t11e bonds of said District shall be paid in full. Provided,
however, that this Ordinance may be amended or supplemented by an Ordinance
or Ordinances adopted in accordance with the laws of the State of Colorado
and the Charter of said City, with the written consent of the holders of
seventy-five percent (75%) of the bonds authorized herein and outstanding
at the time of the adoption of such amendatory or supplementary Ordinance.
Section 12. A public hearing on this Ordinance will be held in
the Council Room of the City Hall on Monday,1 the 4th day of January, 1960,
at the hour of 8:00 P.M., and notice of such hearing is hereby authorized
to be given by publication in the Englewood Herald and Enterprise in its
issue of December 24, 1959.
INTRODUCED as a Bill and read this 21st day of December, 1959.
Passed on Final Reading by the City Council of the City of
Englewood, Colorado, this 4th day of January, A.D. 1960, and ordered
published in full in the Englewood Herald and Enterprise.
~s:~['~ -Maydr ____..--C_.7 r
A'ITEST:
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I, B. o. Beausang, City Clerk-Treasurer, City of Englewood,
County of Arapahoe, State of Colorado, do hereby certify that the above
and foregoing ordinance was introduced, read, passed and ordered published
as a bill in the Englewoo d q erald and Enterprise at a regular meeting of
the Cit y Council held on the 21st day of December, A.D. 1959, and that at
least 7 days after above publication as a bill the above ordinance was
approved, adopted and ordered published in said legal newspaper by the
City Council at a regular me eting held on the 4th day of January, A.D.
1960, as Ordinance No. 2, Series of 1960, of said City.
ATT EST:
t__.
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