HomeMy WebLinkAbout2003 Ordinance No. 089•
ORDI NANCE NO. '3!j_
SE RI ES OF 2003
BY AUTH ORITY
COUNC IL BILL NO . 92
INTR ODUCE D BY COUNC IL
MEM BER BRADSHAW
AN EMERGENCY ORDI NANC E OF THE CIT Y OF EN GL EWOO D, CO LORA DO, AC TI NG BY
AN D TH ROUGH ITS GOLF COUR SE ENTERPRISE, AUTHORIZI NG THE ISSUA NC E OF GOLF
COURSE ENTERPRISE RE VENUE REFUNDI NG BO NDS, SERIES 2003 , FOR TH E PURPOSE OF
REFUNDING THE CITY 'S GOLF COURSE ENTERPRISE REVENUE BONDS , SERIES 199 4;
ESTABLISHING AN ESCROW ACC OUN T FOR SU CH REFUNDI NG AND PAYING THE COSTS
THEREOF ; PRESCRIBING THE FORM OF THE BONDS ; PR OVIDING FOR THE PAYMENT OF
THE BO NDS FROM THE OPERATION OF THE GOLF COURSE FA CILITIES; AND PRO VIDING
OTHER DETAILS AND APPROVING DO CUMENTS IN CONNECTION WITH THE BONDS.
WHEREAS , the City of Englew ood , Colorado is a municip al corp orati on duly orga ni ze d and
operating as a hom e rule cit y under Anicl e XX of the Co nstitution of th e Stat e of Co lorado and the
Charter of the Ci ty (un less otherwise indi cal ed, capi1ali zetl lerms use d in thi s preamble shall have th e
meaning s set fo rth in Secti on I of thi s Ordinan ce); and
WHEREAS , the City has heretofore es tabli shed , operat ed and maint ained , throu gh it s Golf
Course Enterprise, the Engle wood Municipal Golf Course ; and
WHEREAS, the G, if Course Ent erprise, initially establi shed pursuant 10 Ordman ce No . 57,
Series of I 993 of the City , constitutes a governm ent o.vr,ed bu sine ss which is authori zed to iss ue it s own
revenue bonds and whi ch receives under 10 % of annua l re venue in gra nts fr om all Col orad o state and
loca l government s combined , and it is hereby determined that the Go lf Co urse Ent erpri se is an enterpri se
within the meanin g of Anicl e X, Secti on 20 of the Colorado Constitution ; and
WHEREA S, Cil y, acting by and th ro ugh i,s Golf Co urse Enlerpri se, has dul y aut hori zed , sold ,
iss ued and deli ve red it s Golf Cour se Reve nu e Bond s, Seri es 199 4 in 1he origin al prin ci pal amount of
$4 ,045 ,000 , of whi ch $2 ,83 0,00 0 in aggregate prin cipal amount is cun-entl y ou,standin g; and
WHEREA S. th e Se ries 1994 Bonds are subjec t to pri or red emp tion on De cemb er I, 2004 , and on
any in1cr csl pay mem date lh erca rler, at a pri ce of par plus accmcd int ere st to th e date of redem pti on; and
WI IERC,\S, the p!'i ncip al of and int eres t on th e Se ri es 1994 Bonds arc pa yab le at J.P. Morgan
Tm st r;om pany , Na ti onal Associati on, as pay ing agent; ~md
WH EREA S, pursuan, to Secti on I 06 of the Cit y Chmer, the City may iss ue refun ding bond s by
ordi na nce, with out an electi on, for th e purp ose or pa yin g out standin g bond s of th e Cit y; and
WJI EREA S. Geo rge K. Baum & Compan y has prese nt ed a prop osa l to th e Cit y 10 advan ce refund
the Series 199 4 Bon ds thro ugh th e iss uan ce or Golf Cour::c Enterpri se Revenu e Bond s, Se ri es 2003, and
lh e Co un cil has det ermined 11.11 the nego tiat ed sal e of th e 13 ond s to sai d company is to the bes 1 ad van t~1gc
of 1h e Ci ty: and
1..\ .1 ERE AS, th e m·t procee ds deri ved fr om the sul c of th e Bond s shall be place d in th e spec ial
fun t\ an<l ~ru st account herein au th orized, fo r th e purp ose onl y of payi ng th e Refu nd ed Bond s
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Requirem ent s as th e same become due and payab le to und incl uding 1h e Redempti on Dntc , all ns is more •
parti cu larl y hcrc inafl cr se t forth ; and
WHER EAS , th e Se rie s 1994 Bo nds wi ll be defc ase d upo n the issuance of th e Bond s and , on the
da te of is suance of the Bond s, no ot her bonds or financial ob ligation s wi ll have n fir st li en on the Net
Revenu e of th e Gol f Course Faciliti es ; and
WHEREAS, the Co un ci l de sires to autho ri ze the iss uance and sa le of the Bonds nnd , as pro vided
in Title 11 , Arti cle 57 , Part 2, C.R.S., delegate the au th orit y to th e Sa le Dele ga te to determin e th e Dat ed
Dat e, int erest rate s and annu al maturitie s for the Bonds, as we ll as th e dates on whi ch th e Bond s ma y be
redeemed and the existence of any ca pituli ze d int eres t, in acco rd ance wi th the pro visio ns of this
Ordinan ce; therefore
NOW, THEREFORE, BE IT OR DAINED BY THE CITY COUNC IL OF THE CITY OF
ENGLEWOOD , COLORADO :
Section I. Definitions . As use d herein, the fo ll ow ing cap it ali ze d term s shall have the
re specti ve meanings ser forth bel ow, unl ess the context indicat t..i oth erwise.
"Acts" me ans the Chart er ; and Tit le 11, Artic le 57 , Part 2, C.R.S.
"Bani<' means The Bank of Ch erry Creek, a bran ch of Western Nati onal Banlc.
''Beneficial Owner'' n,eans any person for which a Partici pant acquires an intere st in the Bond s.
"Bond Account'' means the "Go lf Course Enterpri se 2003 Bond Account," esta bli shed by the
prov isio ns hereof fo r the purpose of paying the princip al of, premium if any , and interest on the Bonds ,
including the Interest Subaccount and th e Prin cipal Suba ccount.
"Bond Cou nse f' mean s (a) as of the date of iss uance of the Bonds , Kutak Rock LLP, and (b) as of
any other date, Ku tak Ro ck LLP or suc h ot her attorney s selected by th e Ci ty with nationall y recogn ize d
ex perti se in th e issuance of municipal bonds .
"8011d Pur chase Agree ment" mea ns the ag reement be tween th e Cit y and the Pu rc haser
co nce rning the purcha se of th e Bond s by th e Purchaser and th e deli very of the Bond s by th e City.
"Bond Registrar" means the Bank , or its successor, which shall perform th e fun cti on of regi strar
with re spect to the Bond s.
"8 011ds" me ans th e Go lf Co ur se Enterp ri se Revenue Re fund in g Bond!i , Seri es 2003 , aut hori ze d
by thi s Ordinance .
"Busin ess Day " mea ns nny day oth er th an (a) a Saturday or Su nday or (b) a day on whi ch banking
ins tituti ons in th e State are auth oriz ed or obligated by law or execu tive order to be closed for bu sine ss.
"Cap ital /mp rovemc11ts" me ans the ac qui siti on of land, case men ts, fac ilitie s and equipment (o th er
than ordin ary repairs and rep lace ment s), an d the co nstru ct ion or iecon structi on o f improveme n1 s,
bett erm ent s and exte nsions, for use by or in con ne ct ion with the Go lf Course Fac ilit ies whic h, unde r
Genera ll y Accepte d Acco unting Prin ci ple s for gov ernmental unit s as presc ribed by th e Govern ment al
Accou nt St an dard s Board , arc properly chargeabl e as ca pital items .
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"Cede'' mea n~ Ce de & Co ., the nom in ee of DTC as record own er of the Bond s, or any succ esso r
nominee of DTC wit h res pect to the Bonds.
''Certified Public Ac co ,mta nt" means an ind ependen t certifi ed pub li c account ant wi thin the
mea ning of§ 12-2-11 5, C.R.S., and any amendment thereto, li ce nsed to prnc ti ce in the Stntc of Co lorado.
"Charter" mea n" th e home rul e Charter of th e Cit y.
"Ciry" mea ns the Ci ty of Englewood, Co lorado , act in g by and th ro ugh its Go lf Course Ent erpri se.
"Code" mea ns th e ln ternu l Reve nue Cod e of 1986, as amen ded.
"Combined Max imum Ann ua l Prin cipal and /11teres 1 Require men ts" mea ns, wit h res pec t to th e
Bo nd s or an issue of Parity Lien Bond s fo r whi ch such term is use d, an amount equ al to the max imum
amount required to be pa id in any sin gle current or future calend ar yea r as th e prin ci pal of (in cludin g any
mand atory si nk ing fun d requirem ent s) and int eres t on Outstan din g Bond s or Parity Li en Bond s,
respecti ve ly. excluding any such bond s whic h have bee n def ea sed pursuant to the tenn s of th e au th ori zing
doc um ent s. Fo r purpose s of calculating the Co mbin ed Max imum Annu al Prin ci pal and Int eres t
Requir ement s in any calendar year of fin al maturi ty of the Bonds or an iss ue of Pari ty Li en Bond s,
res pecti ve ly, th ere shall be subtrac ted fr om th e fin al prin ci pal pay ment fo r sai d bond s any cas h or th e
pr es ent value of any in ves tments depos ited in a re se rv e fund or account es tabli shed pur suant to the
author izi ng do cum ents whi ch are properly all ocabl e to sa id bond s. For purposes of calculatin g th e
Co mbin ed Max imum Annu al Princip al and Intere st Require:n ent s for any iss ue of sec uriti es bearin g a
variabl e, adju stable or oth e• s imilar rnte which is not fi xed for the ent ire tenn th ere of, it shall be ass umed
th at any such sec urities Outstanding at th e tim e of computati on will be ar interest during any period, if the
int erest rate for such peri od has not bee n dttenn ined, at a fix ed rate equ al to the high es t rate born e durin g
the prece ding 36-month peri od or, if the sec uriti es have not bee n out standing for a 36-month peri od, two-
hun dred basis points abo ve the rate borne by sa id sec uriti es on th eir da te of iss uance .
"Co nrim1i11g Disclosure Undert aking' me ans the Continui ng Di sc los ure Undertakin g of the Ci ty
execu ted and deli ve red by the City in conn ec ti on with th e iss uance of th e Bo nds to faci lit ate com pli ance
wi th Sec uriti es and Exc hange Co mmi ssion Rui c I 5c2 -1 2 (17 C.F.R. § 240 . I Sc2-l 2).
''Co nsulting Engineer" mea ns any qua lifi ed, regis tered or li censed profes sional eng in eer
prac ticing und er the laws of the Staie of Co lorado, who is in de pend ent in fac l and not an offi ce r or
em pl oyee of the City.
"Co 1111ci/" mea ns the Cit y Cou ncil of th e Ci ty ac ting as th e gove rnin g body of the Go lf Course
Ent erpri se.
"C.R.S." means th e Co lorado Rev ise d Statutes, as amend ed and s upp lement ed as of th e da te
hereo f.
"Da red Dare" me ans the da ted dat e fo r th e Bond s as esta bli shed in th e Sa le Ce rt ifi ca te.
"Defeasr,,i ce Sec urit ies" mea ns bill s, certifi cates of ind ebte dn ess, notes, bonds or simil ar
sec urities which are direct no n ca ll ab le ob li gations of the United Sta tes of America or which arc fu ll y and
unco nd iti ona ll y guara nt eed as to th e ti mel y payme nt of principa l and interes t by the Uni te d States of
America .
"Depos itory" mea ns any se curities depo sitory as the Cit y may prov ide and appoi nt , in accordan ce
\!,dt h th e guid elin es of the Sec uriti es and Exc hange Co mmi ss ion, whic h shall ac t as sec urit ies depo sit ory •
for the Bond s.
"DTC" m~n ns the Depository Tru st Co mpany , New Yo rk , New Yo rk , and its successo rs and
ass ign s.
··DTC l ett er of Represe111atio11 s" means the DTC Letter of Rep re se nt ation s from the City to OTC,
dated Deee mber 29 , 1998 , to indu ce OT C to accept sec uriti es of the Cit y as eligi ~lc for depo sit at OTC .
'"Event of Defaull'' mea ns any one or more or the eve nt s set forth in th e Se cti on hereof entitl ed
"Even ts of Default."
.. Escrow Acco unt" mean s th e accoun t c:s tabli shed for payment of the Refunded Bond s pursuant to
the Esc row Agree ment.
"Escrow Agen t" means J.P. Morga n Tru st Co mpany, Nation al Association , or its succe sso r,
which shall perform the function of esc row agent under the Escrow Agreement.
"Escro w Agreement" mea ns the Escro w Agreement between the City and J.P. Morgan Tru st
Company , National Association relating to the administration of the Escrow Account.
"Federal Securities" means direct obligations of (including obligations iss ued or held in book-
entry form on the books oO , or obligations th e princip al of and interest on which arc ~uarantecd by , the
United Stairs of America .
"Fiscal Year" means the 12 month s commenci ng January I of any year and ending December 31
of said year.
"Golf Course En terprise" means the Go lf Course Enterprise as established by City Ord inan ce
No . 57, Series of 1993 , as sa id ordinanc e may be amended from time to tim e.
"Golf Course Enterprise Fu11d" mean s the Golf Course Rev enue Fund of th e City which acc ounts
for the fin ancia l activity of the Golf Course Enterprise Fund.
"Golf Co urs e Facilities" mea ns all of the City's Golf Course Facilitie s including without
limita tion interest s in real and personal property now owned or herea ft er acq uired wheth er situated within
or wit hout the City bou nda rie s and all pre sen t or future impro veme nt s, extension s, en largement s,
bett erments, repl ace ment s and add iti ons th ereto.
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''Gr oss Revenu e" mea ns all inco me and reve nue s direc tl y or ind irect ly de ri ve d by the City from
the operation and use of the GJlf Course Enterprise, including without limitation, any rates, fees and
charges for the serv ices furni shed by, or the use of, the Golf Co ur se Enterpri se , and all in come
attributab le to any pa st or future di spositions of property or right s or re lated contra cts, se ttlem ent s or
judgme nts held or obt ained in co,,nection with the Golf Co urse Enterpri se or it s opera ti ons, and includin g
in vestment inco me acc ruing fr cm money s held to the credit of the Go lf Co urse Ent erpri se Fu nd ; provided
ho eve r, th at th ere shall be •exc lud ed from Gross Revenue any moneys borrowed and use d fo r providing
Ca pital Improvements ; any money and sec uritie s, and in vestm ent in co me th erefrom , in any refunding
fun d, esc row nccou nt or similar acco unt pledge d to the pay ment of any bond s or ot her obligations; and
any money s re ceived as gran ts or app ropr ia ti ons fr om th e Uni ted States, th e St ate of Co lorado or oth er
so urces , the use of which is limit ed or restri cted by th e gran te r or donor to th e provis ion of Ca pit al •
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• Improveme nts or fo r other purposes res ulting in the ge neral un avail abi lity thereof, exce pt to the ex tent
any such m ncys shall be recei ved as pay ment s fo r the use o f th e Golf Cour se Facilities, se rvices
rendered thereby, th e avai lability of any such service or the dis posa l of an y commodities therefrom.
"lt11eres 1 Pay me111 Date" mea ns the interest payment dates set fo rth in the Sale Certificate .
"Interest S 11 baccow11'1 means a subaccount of the Bond Acco unt re a ffirmed by the provi sions
hereof for the purpose o f paying the interest on the Bond s.
'·M11 11 icipa l Code" mea ns the City of Englewood Municipal Code, as amended.
"Net Revenue" means the Gross Revenue after deducting the Operation and Maintenance
Expenses.
"Officia l Stateme11f' means the final version of the Preliminary Official Statement.
"Operation and Maimenance Expenses" means all reasonable and necessary current expenses of
the City, paid or accrued , for operating, maintaining and repairing the Golf Course Facilities, including
without limitation legal and overhead expenses of the City directly related to the ad,ninistration of the
Golf Course Enterprise, insurance premiums, audits , charges of depository banks and paying agents,
professional services, salaries and administrative expenses, labor and the cost of materials and supplies
for current operation; provided however, th at there shall be excluded from Operation and Ma intenance
Expenses any allowance for depreciation, pa yments in lieu of taxes or franchise fees, legal liabilities not
based on contract, expenses incurred in connection with Capital Improvements, payments due in
connection with any bonds or other obligations, and charges for the accumulation of reserves.
• "Ordinance" means this ordinance which authorizes the issuance -:f the Bonds, including any
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amendments properly made hereto .
"Outsranding" means , as of any date, all Boi:ds and Parity Lien Bonds, except the following:
(a) any Bond cancelled by the City or the Paying Agent, or otherwise on the City's beh alf, at or before
such date; (b) any Bo nd he ld by or on behalf of the c;,y; (c) an y Bond for the payment or the redemption
of which moneys or Defeasance Securities suffiri ent to meet all o f the payment requirement s of the
princ ipal of, interest on, and any premium du e in connection with the redemption of such Bov.d to the dat e
of maturity or any redemption date thereof, shall have theretofore been deposited in trust for such purpos e
in accordance with the section hereof entitled "Defensing;" and (d) any lost, apparently destroyed , or
wrongfully taken Bond in lieu of or in substitution for which another bond or other security shall have
been executed and de li vered.
"Own er'' means the regi stered owner o f any Bond , as shown by the registration books maint a ined
by th e Bond Re gistrar.
"Pari ty Lien Bonds" means one or more series of additi onal bonds, no te s, interim sec urities or
other obligations is sued by the C ity pursucnt to the Section hereof entitled "Additional Bonds ," ha ving a
lien on the Net Reven e which is on a parity with the li en of the Bonds .
"Parity Resen ·e Amouril'' me ans, as of any date on which it is calcul ated with respect to any issue
of Parity Lien Bonds, the least of (a) 10% of the principal a mount of said Parity Lien Bond s, (b) the
maximum a nnua) debt se rvice in any calend ar year on said Pari ty Lien Bonds or (c) 125¾ of the average
annual debt service on said Parity Lien Bond s; provided, howeve r, that the Parity Re se rve Amount may
be reduced if, in the opinion of B ond Counsel, th e funding or maintenance o f it at the leve l 01 hcrwisc
dclcrmincd purs uant to thi s dcfini1i on will ca use 1he re serve account for suc h Parity Lien Bond s to exceed
the am ou nt pcnnittcd by th e Co de to be in ves ted in hi glic r yielding in ves tm ents as a reasonab ly requ ired •
reserve :i mount and repl ace ment fund .
"Participtmts" mean s an y brok er dea ler, bank or oth er finan cial institution from time to tim e for
which DTC or ano1 hcr Depos it ory hold s !he Bonds .
"Paying Agent'' mean s the Bank , or its successor, which shall perform th e fun cti on of pa ying
agent with rc s pc cl to the Bonds .
"Paying Agent and Regis trar Agreeme111" means the ag reement dated as of th e Dutc:d Date ,
between th e City an d the Paying Agen t/Bond Regi strar , concerning the registration , transfer, exchange
and pa yment of the Bonds .
"Permitted b,vestment s" means any law ful in ves tm ent pem1itt ed for th e in ves tm ent of funds of
the City by the Charter and the laws of the Siate.
''Person" me ans a corpo rat ion , finn , oth er body corporate, partnership, asso ciation or individual
an d also includes an executor , administrator, trustee, receiver or other rep re se nt ati ve ap pointed according
to law.
"Preliminary Official Statemetlt" means the Preliminary Official Statement co nc erni ng the Bonds
and the City used in connection with the marketing of the Bonds.
''Principal Pay ment Dale" means any maturity date for a Bond , as se t forth in the Sale Certificate .
"Principal Subacco 1111t" means a subacco unt of the Bond Account reaffim1 ed by th e provisions
of forthe purpose of paying the principal of and premium , if any, on the Bonds .
"Project" means 1he capi tal impro vem ents financed with the proceeds of th e Refunded Bonds .
"P,·o Ruta Portion" means when used wi th re spect lo a required credit to the Principal
Subaccoun t or th e Int erest Sub acco unt , the dollar amo unt derived by dividing th e amount of principal or
interest to come due on the next Principal Payment Date or Int eres t Paym ent Date by the number of
monthl y credit s required 10 be made pri or to s uch payment date .
"Pu rchaser" mean s George K. Baum & Company , the origina l purch aser of the Bo nd s.
"Rating Agency" mean s Fitch IBCA., Mo od y's In vestors Service, Inc . or Standa rd & Poor 's
Rating s Services, a Divisi on of The McGraw -Hill Companies, In c.
"Record Dat e" means either (a) 1hc fifteenlh day of the calendar mon1h ne xt prec eding eac h
!merest Payment Date, if such dale is the first day of the month or (b) !he fir s, day of 1hc ca lendar month
if the In te res t Pa yment date is th e fifteenth day of th e month .
··Redemption Date" mea ns Dec ember I , 2004 .
"Ref1111ded 8011ds" or "Series /994 8011ds" means !h e Go lf Cou rse Reve nu e Bonds, Series 1994,
as au1ho ri zc d by !he Refunded Bonds Ordi nance.
"Refimded Bonds Ordinan ce" mean s th e City's Ordinance No. 7, Se rie s 1994.
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"Refi mded Bond Requirements" mean s th e s um of (a) all of th e prin cipa l then ou tstandin g on the
Refund ed Bond s on the Re dempti on Date and (b) all unpaid int erest acc ru ed on 1hc Refu nd ed Bonds to
th e Redemption Da te.
"Refun din g Project" mea ns the advance refundin g of the Refu nded Bonds and oth er purpo ses fo r
whi ch the pro ceed s of th e Bond s ma y be expended under th e Acts , in cludin g, bu t not limit ed 10, mak ing
de pos it s to the Escrow Acco unt and th e Bond Acc ount pur s uant to the Sect ion here of entitl ed "In iti al
Credit of Bon d Procee ds" and payin g the cost s of issuance of the Bonds ..
11 Req 11ired Reserve Amo,mt" mca ns1 as of any date on whic h it is calcu lat ed, th e leas t of (a) I 0%
of the principa l amou nt of th e Out stan ding Bon ds, (b) the max imum annual debt serv ice in ;my calendar
year on the Out standing Bond s or (c) 125°,J of the average annu al debt service on the Ou ts tandin g Bonds;
provided, howeve r, that the Required ese rve Amount may b~ 11.:tiuc cil if, in the opin io n of Bond
Co un se l, the funding or maintcmmce of it at th e leve l otherwi se determi ne•' purs 1mnt to ti :is dt!finit il ,. will
ca use the Re serve Account to exceed the amount permitted by the Code to be in veste d in high er yieldin g
inve stments as a re aso nabl y required re serve amount and repl ace ment fund .
"Reserve Acco1m r" me ans a spec ial account of th e Ci ty des ignat <.;d as the "Go lf 1: ,w ·:-···.ac rp ri se
2003 Bond Rese rve Ac co unt ," crea ted by this Ordinance for tt,c pu1: •"..,; of pa 1i1,g\ i'i ,"'c,:~ •S.1ry , th e
prin cipal of, pren.ium if an y. 1J nd b teres t on the Bond s.
"Reserve Account Co ntract" me ans a surety bond , in s urance policy , letter of credi t, in ves tm ent
agree ment, investment contract or simil ar in stmment.
"Sale Ce rtificc::e" mean s the cenificate ex ~c 11ted by the Sa le Del egate under the au thority
delegated pursuant tc this Ordinance , inc luding but not limited to the Se ct ions hereof entit led "Bond
Details ," "Prior Rede.11ption" and "Authori zation to Execute Documents" which set forth , among othe r
things, the Intere st Pay ment Date s, th e Prinr.ipal Paym ent Date s, mandat ory sinking fund pay ment date s,
th e price s at whi ch th e Bond s will be so ld, 11,e Dated Date, th e first interes t pay ment date for the Bond s,
the Rede mpti on Date, and the intere st rates and annual maturing prin cip al for th e Bonds, as well as th e
dates on which th e Bonds may be red ee med and the redem pti on pr ices lh erefore , and th e aut hority to
exec ute the Bond P1,;.rcha se Agreeme nt.
"Sal e Delega te" me ans the Director ofFinancial Services of the Cit y or the Cit y Manager .
··Sp ecia l Record Date" mean s th e reco rd d.!te fo r detc m1 inin g Bond ow nership for purpo ses of
paying default ed int erest, as such date may be dctennin ed pursuant to th is Ord in ance.
"'Sta te" mea ns the State of Co lorad o.
"Suhordinate lien Bonds" mean s one or more se rie s of ad dit iona l bonds, notes, interim st:c uri ties
or oth er ob li gatio ns iss ued by the Cit y pursuant to the Secti on hereof entitled "A dditional Bonds," ha vin g
a lien on th e Ne t Re\'enue which is subordin ate or junior to the lien of th e Bond s.
'"Tax Co mpliance Certificate" means th e Ta x Co mpli ance Ce rtifi cate , dat ed the da te on whi ch the
Bonds are originall y iss ued and de li ve red to th e Cit y by Bon d Cou nse l, as s uch in stru ction s ma y be
superseded or amend ed in acco rdan ce with theirs tcm1 s.
Section 2. Authorization . In acco rdan ce wi th th e Co nstituti on of the State; th e Acts ; and all
ot her laws of the State th ereun to enab lin g, th ere shall be is sued by the Cit y, act in g by und through it s Go lf
Co ur se Enterpri se, the '"Go lf Co urse Enterpri se Revenue Refundin g Bond s, Ser ie s 200 3/' in th e aggregate
principal amount of not to excee d SJ,000 ,000, for the purpo se of paying the costs of the Refunding
Project. The accomplishment of the Refunding Project is hereby authorized, approved and ordered und it •
is hereby dr.te nnincd that the Bond s mature at such time not exceeding the cstimntcd life of the Project.
Section 3 . Bo nd Details .
(a) Registered Form, Denominations, Original Dated Date a11 d Numbering . The
Bond s shall be is sued as fully regi stered bond s, shall be dated as of the Dated Date , and sha ll be
regist ere d in the names of the Perso ns identified in the regi stration books mai ntain ed by the
Paying Agent pursuant hereto . The Bonds shall be issued in denominutions of SS,000 in principal
amount or any integral multiple thereof. The Bonds shall be consecutively numbered, beginning
with the nu mber one, preceded by the letter "R."
(b) Maturity Dates, Principal Amounts and Interest Rates . The Bond s shall mature
on the date s and in the principal an,ounts, and shall bear interest at the rates per annum
(calculated based on a 360-day year of twelve 30-day months) set fonh in the Sale Ccnificatc;
provided , however , that the final maturity of the Bonds shall be no later than December 31, 2024 .
The Co unc il hereb y delegates to the Sale Delegate the authority to determine the Dr.,cd Date , the
price at which the Bonds will be so ld, the amount of principal of the Bonds maturing in any
particular year and th e rate of intere st on the Bonds ; how ever, the intere st rate of the Bonds mu sl
be lower than the rate for the Refunded Bonds.
(c) Accrual and Dates of Payment of Interest. Interest on the Bonds shall accrue at
the rates set fonh in the Sale Cenilicate, from the later o~ the Dated Date or the latest Interest
Payment Date (or in the case of defaulted interest, the late st late) to which intere st has been paid •
in full and shall be payable on each In terest Payment Date.
(d) Manner and Form of Payment. Principa, of each Bond shall be payable to the
Owner thereof upon presentation and surrender of such Bond at the principal office of the Paying
Agent in the city identified in the definition of Paying Agent in the Section hereof entitled
"Definitions" or at such other office of the Paying Agent designated by the Paying Agent for such
purpose . Interes t on each Bond shall be payable by check or draft of the Paying Agent mailed on
each Intere st Payment Date to the Owner thereof as of the close of bu sines s on the corresponding
Record Date ; pro vided however, any such interest not so timely paid or duly provided for shall
cease to be paya ble to the person who is the Owner thereof at the close of bu sine ss on the Record
Da te and shall be paya ble to the person who is the Owner thereof at the close of business on a
Special Record Date for the payment of any such defaulted int erest. Notice of the Special Record
Date shall be given to the Owners of the Bond s not les s than ten days prior thereto, by fir st-clas s
mail to eac h such Owner, as show n on the registration book s kept by the Regi strar, on a date
se le cted by the Pa yi ng Agent, stating the date of the Special Record Dat e and th e date rixed for
the pay ment of suc h defaulted interest. Interes t payab le to any Owner as provided in this
paragraph may be paid by any other mean s agreed to by such Owner and the Pa yi ng Agent that
does not req uire the City to make money s ava ilab le to the Paying Agent cu rlier thun otherwi se
required hereunder or in crea se the costs borne by the City hereunder. All pay ments of the
principa l of und interest on the Bonds shall be made in law ful money of the United States of
America.
(e) Book-Entry Registration. Notwith standing any ot her prov ,sion hereof, the
Bond s shall be delivered only in book-entry form regi,tcrcd in the nam e of Cede & Co ., as
nominee of DTC , ac ting as sec urities depo sitory of the Bond s and principal of and int ere st on the •
Bonds shall be paid by wire transfer to DTC ; provided, however, if at any time the Paying Agent
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dl!tcm1i ncs, and notifies the Cit y of its dcterm in ,1tion, that OTC is no longer ab le to act as, or I!. HO
longe r satisfactoril y performing its duties as, sec uritie s depository fo r the Bond r., the Pa ying
Age nt may, at i1s di screti on, ei th er (i) des ignate a subs titut e secu rit ies dep os it ory fo r DT C and
rcrc g:stc r th e Bon ds as directe d by suc h suti;;titute sec uriti es depository or (ii) tcm1 in ate th e ho ok•
ent ry regis tration sys tem and,. •nn ister the B'-•nd s in th e names of the beneficial owne rs thereof
provided to it by DTC . Neither lh< Ci1y nor the Paying Age nt shall have any li ability 10 DTC ,
Cede & Co., any substitute securit ies depository, any Person in whose name the Bond s arc
rcrt!gistcrcd at th e direction of any subs tit ute secu riti es depo sitory, any bene fi cial owne r of the
Bo nds or any 01 hcr Person fo r (A) any de 1em1in a1ion made by 1he Pa yi ng Agen t pursuam 10 the
provi so nt the en d of the imm ediately precer.in g se nt ence or (B) any ac ti on taken 10 impl ement
suc h detcm1ina :ion and the procedures relat~d th ereto th at is take n pur suant to any direction of or
i reli ance on ;m y information prn \•id ed by DTC , Cede & Co ., any substit ut e sec uri ti es depos itory
or any Pe rso n in whose nam; th e Bonds are rereg istered .
Section 4. Prior Redemption .
(a) Optional Redemption . The Bond s shall be subjecl to red empti on a, ,h e op tio n of
the C it)\ in whole or in part , and if in part in such order of maturith:s as the City shall detennine
and by l01 wi1hin a maturity on su ch dat es as set forth in the Sale Certifica,e. The Council hereby
delegales to the Sale Deleg ale th e au1hority 10 determine the dale s on which 1he Bond s shall be
subje ct to opt ional red em ption and th e re dempti on price or prices at whi ch such red empti on ma y
be mad e.
(b) Mandatory Sinking Fund Redemption . All or any principal amount of 1he
Bonds may be subject to manda1ory si nking fund redemp1i on by lot on 1he da,cs and in the
principal am o unts spe cified in th e Sale Certificate, at a redemption price equal to the prin cipal
amount thereof (wi th no redemption premium), plu s acc ru ed inlereSI 10 1he redemplion date . The
Council hereby delegates 10 1he Sale Delega1 e 1he aulh ority to de1ermine 1he principal amounls
and dales on which 1he Bond s shall be subject to mandatory si nking fund redempti on. At ilS
o pti on, 10 be exercised on or before 1he fony fifth day nex t preceding eac h sinking fund
rede mpli or. date, the Ci ty may (i) deliver to the Pa ~ing Age nl fo r cancell at ion of any Bonds with
the same maturity dute aJ the Bonds subj ect to such si nkin g fund rede mpti on and (ii) rece ive a
credit in re s pect of ;ts sinking fund redempti o n ob li ga ti on for any Bonds wit h th e same maturity
date as th e Bonds subject to such sinking fimd rede mpti on whi ch prior to such date hav e bee n
redci.=mcd (o th erwi se th an throui;h 1,,c opern c on of the si nkin g fund) and cancelled by the Paying
Agent and not theretofore applied as a crr d it aga in :>t any sink in g fund red empt ion ob li ga ti on.
Eac h Bond so delivered or previousl) ,e,,eemc d shall be crediled by ,he Pa yin g Agen t at 1h e
prin cipa l amo unt thereof to the ob lig atio n 0! i h ,; Cit y on such sinkin g fund redemp ti on date , and
the principal amo unt o f Bonds to be red eemed by operation of suc h sink in g fund on such date
shall be accordi ngly reduced.
(c) Redemptio11 Pn,cedures . If le ss than all of the Bonds wi thin a maturity arc to be
redcemr ; o n any pri or redempti on date , the Bo nd s to be redeemed shall be se lec ted by lot prior to
the dah: fixed fo r redemption, in such man ner as th e Bond Regi st rar shall determine. The Bond s
sha ll be redeemed onl y in integral multiples of SS ,000. In the even t a Bond is of a denomina tion
large r than SS ,00 0, a portion of such Bon d may be redeemed, but onl y in the principal amount of
SS,000 or any int egra l multipl e ,h ereof. Such Bond shall be 1rea 1ed fer 1he purpose of redemp1ion
as 1ha1 number of Bonds which res ult s fr om divid in g th e prin cipal amounl of such Bond by
$5,000 . In the even ! a porti on of any Bond is redeemed, lit e Bond Reg iSlra r shall, wilhou, charge
to th e Ow ner of such Bond , auth enti cate and de li ve r a repl ace ment Bond or Bonds fo r th e
unredeemed portion thereof.
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(d) Ri:demptio11 No tice . No ti ce of any rcd emp1i on of Bond s shall be give n by 1hc
Payin g Agent in the name of th e Cit y by sendi1g a copy of such not ice by fir st class, pos 1agc
prepaid mail , not le ss tha n 30 da ys prior to th e rcJe mp tion date. 10 th e Own er of cnc h Bond being
red eemed. !heh notice shall specify th e numb er or numb ers of the Bond s so to be redeemed (if
redemption shall be in part) and th e redempti on date . If any Bond shall hu ve bee n duly call ed fo r
redempti on and if, on or before the redemption dutc , th ere shull huvc been deposited with th e
Payin g Agent in accordance with thi s Ordinance fund s sufficient to pay the rede mpti on pri ce of
such Bond on the redempti on date , then such Bond shall become du e and pay able at such
rede mpti on date , and fr om and afler suc h date interest wi ll ccnse to accrue thereo n. Failure to
deliver any redemption notice or an y defect in any redem ptio n notice shall not ;_1ffect the va lidi ty
of the proceeding for th e redemption of Bonds with resp ec t to which such failure or defect did not
occur. Any Bond r..!deemed prior to it s ma turit y by prior redempti on or oth erw ise shall not be
reiss ued and shall be cance ll ed.
Section S. Form of Bonds . The Bonds shu ll be in sub stantially tho form set fort h in
Appendix A hereto with suc h chan ges thereto, not in cons istent herew ith , as may be ne cessary or de sirab le
and approved by the officials of the City e<ec uting the same (w ho se manual or fac simi le sig natures
the reon shall co nstitute conclu sive evidtnt:e of such appro va l). All coven ants , statements , representations
and agreements co nt ai ned in the Bond s are hereb y approved and adopt ed as the covenants, statem ent s,
repre sentations and agreement s of th e City. Although attached as and appendix for the con venience of
the re ader, Appe ndix A is an integral part of thi s Ordinance and is in co rp orated herein as if set forth in
full in the body of this Ordin ance .
Section 6. Execution, Authentication an d Delivery of Bonds.
(a) E.tecmion . Th..! Bon d'i shall be exe cuted in the name ?nd on behalf of th e City •
with tht· manua l or facsimile sig nature of the Mayor, shall bear a manual or facsimi le of the seal
of the City an d sha ll be atlestcd by the manual or fac simile sign ature of the City Clerk both of
whom are hereby au th orized and directed to prepare and execute the Bond s in acco rdance with
the re quirem ent s hereof. Should any office r whose manual or facsimile signature appears on the
Bonds cease to be such officer before delive ry of any Bond , such manua l or fac sim ile signature
shall nevert hele ss be va li d and suffi cient for all purposes.
(b) A11th e11tica tio11 . Wh en the Bonds have been dul y execu ted , the office rs of the
Cit y arc authorized to, and shall, de liver the Bond s to the Paying Agent for auth enti cati on. No
Bond shall be secured by or entitled to the benefit of this Ordinance, or shall be va lid or
ob li gatory for any purpose , unle ss th e certificate of au thcntic atinn of the Pay ing Agent has been
manua ll y execu ted by an aut horized sig 1mt ory of th t: Pa ying Agl.!nt. The executed certifica te of
au th entication of th e Pa ying Ag en t npon any Bond shall be co nclusi ve evidence, and th e onl y
co mp etent evidence, that suc h Bond h,1s bee n proper ly auth en ti ca ted hereunde r.
(c) De/it1ery . Upon th e authc r.tica ti on of th e Bonds , the Pa ymg Agent shall ddiver
the same in acco rd ance wi th th e provisi ons of the DTC Letter of Rep rese ntat ions and other
procedures establi sh\!d wi th the cons ent of OTC and tne Pa yi ng Agent. Upon rece ipt of the
agreed purchase price of the Bond s in accordance with the Bond Purcha se 1\gre cment ,111d
is suan ce of the appro vin g opini on of Bond L Ju nsel , ihc Bonc1s slrnll be relea sed by OTC ano the
Pa yin g Agent for cred it to 1he Parti cipa1,1 s and th e Beneficial Owners.
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Section 7. Rcglstrnli on, Exc hange 11nd Transfer of Bonds; Perso ns Treated as Owners .
(a) Registratio11 . The Paying Agent shall maintain regi strati on books in which the
ownership, tran sfer and exc hang e of Bond s shall b:: recorded. The person in whos e name any
Bond shall be regi stered on suc h registration books shall be deemed to be the absolute ow ner
ther eo f for all purpo ses and neither th e City nor the Pu;i ng Agent sha ll be affected by any notice
or ot her info nn ation to the contrary .
(b) Trans/er and Exchange. The Bonds ma y be tran sferred or exchanged , at the
prin cip al office of the Paying Agent at the location identified in the definition of Pa ying Agent in
the section hereof entitled "Definiti ons;· for a li ke aggregate principal amou nt of Bonds of other
authorized den omina ti ons of th e same maturity and interest rate , upon payment by the trans fer ee
of a transfer fee , any tax or governmental charge required to be paid with re spect to suc h transfer
or exchange and any cost Df printing bonds in con nection th erew ith . Upon surrender for transfer
of any Bond , duly endorsed for tran sfer or accompanied by an ass ign ment duly execu ted by the
Owner .,r his or her attorney duly authorized in writing, the City shall execute und the Poyi ng
Age nt shrill authenticate and deliver in the name of th e transfe ree a new Bon d.
(c) limitations on Tra11 sfer. The City and Paying Agent sha ll not be required to
issue or transfer any Bonds : (i) during a period beginning at the close of business on the Rec ord
Date and ending at the opening of business on th ,, first Bu sine ss Doy following the ensu ing
interest pa yment date , or (ii) during the period beg inning at the open ing of busin r c. on a date
45 days prior to the date of any redempti on of Bond s and ending at the opening of ' .ess on the
first Business Day following the day on which the applicable notice of red emp · ma iled . The
Paying Agent shall not be required to transfer any Bonds se lected or ca ll ed for rede mption .
Section 8. Replacement of Lost, Destroyed or Stolen Bonds. If any Bond sha ll become
lost, apparen tl y de stroyed , stolen or wrongfully taken, it may be repl ace d in the form and tenor of the lost,
destroyed , stolen or taken bond and the City shall exec ut e and the Paying Age nt shall au thenti cate and
deliver a replacement Bond upon the Owner furnishing, to the satisfactio n of the Poying Agent: (a) proof
of ownership (which sha ll be shown by the registration bouk s of the Paying Age nt), (b) proof of loss,
de struc tion or theft, (c) an in dem nit y to the Ci ty and the Paying Age nt wit h respect to the Bond lost,
de stroyed or taken , and (d) payment of the cost of preparing and executing the new bond or bonds .
Section 9. Tax Co,•enants. For purposes of en :;uring that th e interest on the Bond s is and
remai ns excluded fr om gross inc ome for fed era l inco me tax purp oses, the City hereby covenan1s and
declare s that:
(a) Prohibited Actions. The City wi ll 1101 use or pem1it the us, of any proceeds of
the Bonds or any oth er funds of the City fr om whatever sou rce de ri ved, directly or indirectly , to
acquire any secu riti es or ob liga ti ons and shall not take or permit to be taken any other act ion or
actions, which would cause any Bond to be an "arbitrag e bond" within the meaning of
Sec ti on 14 8 of the Code, or wou ld othe rwise cause tl1c int erest on any Bond to be includible in
gross income for federal inc ome tax purposes .
(b) Affirmative Actions. The City will at all ti mes do and perform all ac ts pem,itted
'1y law that are necessary in order to assure that interes t paid by the City on th e Bonds sha ll not be
includiblc in gross income fo r fe dera l income ta x purp oses under the Code or any other valid
provision of law . In particular, but without lim itation, th e Ci ty rep resents, warra nt s an d
cove nan ts to comp ly with the fo ll ow in g ru le s unle >s it re ceives an opinion of Bond Counse l
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sta ting that such co mpliance is not necessary : (i) gro ss proce eds of th e Bond s ar : the Project will •
not be used in a manner tha t wi ll cause the Bc.nds to be conside red "p riv.i tc ac tivit y bo nd s" wi 1hin
the meaning of the Code; (ii) the Bond s arc not and will not become directly or indirect ly
"federa ll y guaranteed"; and (iii ) the City wi ll timel y file an Int ern al Reve nu e Se rvice Form 8038-
G wit h rcsp.:r t to the Bonds, wh ich shall co nt ain th e in fo rmation required to be filed pu rsuant to
Sec ti on 149(e) of th e Code .
(c) Tax Complia11 ce Certijirnte . Th e City wi ll co mpl y wit h th e Tax Co mpliance
Certifi ca te de liv ered 10 it on th e date o f issua nce of th e Bond s, in cl udin g but not limited by th e
provisions of the Tax Com pli anc e Ce ni ficatc regard in g th e app li ca ti on and inve stm ent of Bon d
proceeds, the use of the Project , the ca lcul ati ons, th e deposi ts, the disbursem ent s, the in ves tm ent s
and th e retentio n of rec ords described in the Ta x Comp li ance Ce rtifi cate; pro vided th at, in th e
eve nt the Ta": Co mpli ance Ce rt ifi ca te are sup ersede d or ame nd ed by new Tax Comp liance
Ce rtificat e d:aft cd by, and Q.Ccom pani ed by an opini on of, Bo nd Co un se l stating that th e use of
th e new Tax Co mpli ance Certi fi ca te will not cause th e inte re st on the Bond s to beco me in cludib le
in gross in co me fo r federa l in come tax purpo ses, th e Cit y will th ereafte r co mpl y with 1he new
Ta x Co mplian ce Certifr.ate .
(d) Desig 11ation of Bonds as Q11a/ijied Tax-Ex empt Obligatio11.,. The City hereby
designate s the Bo nds as qualified tax-exempt obli gatio ns within th e mea ning of Se ctio n 265(b)(J)
of th e Code. The City covena nt s tha t ,he aggreg ate fa ce amount of all tax -ex empt ob li ga tion s
iss ued by th e City, toget her wit h governme nta l entitie s which deri ve their iss uin g authority from
the City or are subj ect to sub stantia l co ntrol by th e Ci ty, shall not be more tha n $10,000,000
during ca lend ar yea r 2003. The Cit y recogni zes that such tax-exempt oblig ati ons includ e notes,
leases, loans a nd warrants, as well as bonds . The City further recogni zes th at any bank , thrift
in stit uti on or other financi al instituti on that ow ns the Bonds wi ll rely on th e Cit y's de sign at ion of •
the Bonds as qualified tax-exe mpt obligations for the purpose of avoiding the loss of I 00% of any
otherwi se ava ilable interest deducti on attributable to suc h in st ituti on's tax-exe mpt holdings.
Section JO. Creation or Fund and Accounts . Ther e is hereby reaffirmed th e Go lf Co ur se
En terpri se Fund and there is he reby estab li shed th e fo ll owi ng accounts of th e Go lf Co ur se Enterpri se
Fund , which shall be maintain ed by the City in ;:1ccorda nce wi th th e pro visions of thi s Ordinance :
(a) the Bon d Acco unt , wi thin whi ch th ere arc es tabli shed the Int erest Sub acco ur,t
;:md the Prin cipal Subac co unt ; and
(b) the Rese rve Acco unt .
Section I I. Applicatio n or Bond Proceeds ; Funding of Escrow Account.
(a) Applicarit,11 of Bond Proueds. Upon payment to the Cit y of th e purc hase pri ce
of the Bond s in acco rdanc e with th e Bond Purcha se Agreement, the Bonds shall be deli ve red to
or as dir ec ted by th e Purchase r. Th e proc eeds rece ive d by th e Cit y fr om the sa le of the Bonds,
fu ll owing the co s1 of iss uance of the Bonds , slrn ll be appli ed as a supplemental ;:1pprop ri ati on by
th e Cit y ,~,s fo ll ows :
(i) to the Int eres t Subaccount, th e acc ru ed int erest on the Bond s fro m th e
Dated Date to th t! dat e of issua nce and cap itali ze d intere st on the Bond s, if any;
(i i) to th e Re serve Acco u111 the amou nt of the Req uired Re se rve Amount ;
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(iii) to th e l:scro , Acco unt , proc eeds of the Bond s whi ch, when comb ine d
with oth er lega ll y ava il abl e money s of th e City , nre suffi cien t to fun d th e Escrow
Acco unt in ac cord ance with th e report of a Ce nifi ed Publi c Acco untant as rcql•ircd by th e
prov isions hereo f.
(b) Additio11al Funding of Escrow Account. On or befo re th e date of deli ve ry of the
Rands, the Ci ty shall depos it to th e Esc ro w Acco unt such oth er lega ll y ava il abl e moneys of th e
• :i:y as may be nec essary to full y fu nd th e Escrow Accoun t as provi ded in sub sec ti on (a) of th is
,ec ti on and in the Secti on entitled "Call and Payment of Refund ed Bond s."
Section I 2. Securlly for Payment of the Bonds ; Flow of Funds.
(a) Pledge of Net Rei•enue. The Bond s shall consti!Ul e an irrevo ca bl e and fir st lien
upon the Net Revenu e, but no t ne cessa ril y an ex clu sive such li en. The Net Reve nue is hereby
pl edged to th e payment of th e Bo nds .
(b) Flow of Funds . The City shall credit to the Go lf Cour se Ent erpri se Fund all
Gross Revenue immediately upon receipt. Th e City shall pay from the Golf Course Enterpri se
Fund all Operation aud Maint enance Expen ses as they boc ome due and pa yabl e . After such
payment or the allocati on of Gro ss Rev enue to such paym ent , the City shall apply th e Net
Re venue in the following order of pri ority :
FIRST , to the cr edit of the Interes t Sub ac count , th e amounts required by the
Sec ti on hereof entitled "Bond Account/' and to th e cre::lit of any other bond account or
subaccount herea fter establi shed for the payment of int eres t on Pari !y Li en Bond s iss ued
in acco rdan ce with the Section hereof entitled "Additi onal Bond s";
SECOND , to the credit of the Principal Subacco unt , th e amount s required by th e
Se ction hereof entitled "Bond Account," and to the credit of any other bond account or
subacco unt here after est abli shed for the pay ment of the principal of, and premium if any,
on Parity Lien Bo nds iss ued in accordance with th e Se ction hereo f ent itl ed. "Additi onal
Bonds ";
THIRD , to the credit of the Reserv e Acco unt , the amount s required by th e
Sec ti on hereof en titled "Reserve Acco unt" and to th e credit of any other acco unt
herea ft er es tabli shed as a re se rve acco unt for Parity Li en Bond s iss ucti in acco rd ance
with the Senion here of entitled "A dd iti onal Bond s'";
FOURTH , to the credit of any other fund or acco unt hereafter establi shed for th e
pay ment of the prin ci pal of, premium if any, and interes t on Subordin ate Lien Bond s,
in clu di ng any sinki ng fund , rese rve fu nd or simil ar fu nd or acco unt estab li shed th erefo r,
the amounts required by 1h c ord inance or oth er enac tment auth ori zin g is suan ce of th e
Subordin ate LiC'n Bonds; and
l'I FT H, to the cred it of any oth er fu nd or accou nt as may be des ignated by the
Cit y, to be use d for any law ful purp os e1 any moneys remainin g in th e Go lf Co ur se
Enterpri se Fu nd aft er th e pay ment s and acc um ulatio ns set fo rth in FIRST throu gh
FOU RTH hereof.
(c) Bonds Do N ot Constitute a Debt. All of th e Bond s, toge th er with the interes t
thereo n and any premium du e in co nnecti on therew ith , shall be paya bl e onl y out of: (i) the Bond
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Ac co unt ; or (ii) if necessary, th e Rc sc rv ~ Account. The Ow ners may not look to any genera l or •
other fund of th e City for the paymcr,t of the principal of, prem ium if any, and int eres t on the
Bonds, exce pt the fund s and ac co u,,<S pledged thereto by this Ordinance, and th e Bond s sha ll not
co nstitut e a debt or un in dcb tc'j nc ss of the Cit y within the mea ning of ar,y co nstitutional or
statut ory prov ision or li mitati on, nor shall they be considered or held to be ge neral ob li ga ti ons of
th e C ity.
Section 13. Bond Account.
(a) Use of Moneys in Bond Acco11nt . Mone ys in th e Bond Account sha ll be used
solely for the purpose of pay ing the principal of, premium if a. y, and int erest 0 •1 th e Bonds. On
or before the la st day o f the month preceding ea ch Interes t Payment Date, th e re sha ll be deposited
with th e Paying Agent an amount from the Interest Suba ccount wh ich is suffi cien t to pay the
interes t on th e Bonds due on such Interes t Pay ment Date . On or before t~e last day of th e month
preceding eac'., Principal Pay ment Date, th ere sha ll be deposit ed with the Pay ing Agent an
amount fr om the Principal Subaccount which is suffici ent to pay the principal of :md premium , if
any, due on th~ Bon ds on such Principal Pay ment Date.
(b) Interest S11baccoun1 . The Int erest Subaccount sha ll be used 10 pay the interest
on Bonds. Upon delivery of the Bond s, th e City shnll c redit to the Inte rest Subaccount the
amount required oy the Section hereof entitled "Initi al Credit of Bond Proceeds." On or before
the last day of each month , commencing in the month next succeedi ng the date of issuance of the
Bonds, the City shall credit to the Interest Subaccount , fr om the Net Revenue and any interes t
in co me to be credited to the Interest Subacco unt pur suant to the tenns hereof, an amount equal to
the Pro Rata Portion of the interes t to co me du e on the Bond s on th e ne xt succ eedi ng Int ere st
Payment Date. •
(c) Principal Subaccount. Th e Principal Subacco unt sha ll be used to pay the
principal of and premium, i; an y, on the Bonds. On or before the last day of each month,
commencing in the month ne xt succee ding the date of iss uance of th e Bond s, the City shall credit
to the Prin cipal Subaccount, fr om the Net Re ven ue and any int eres t incom e to be credited to the
Principa l Subaccount pursuant to the tenns hereof, an amo unt equal to the Pro Rata Portion of the
principal co ming due on the Bonds on the nex t succeed ing Prin cipal Payme nt Date .
Section 14. Reserve Account.
(a) Use of Mo1t l!l'S in Resen 1e Account. Mo neys in th e Re serve Acco unt shall be
use d, if ne cessary, onl y to prev ent a default in th e pay ment of th e principal of, premium if nny, or
int erest on the Bond s, and th e Reserve Account is hereby pledged to th e payment of the Bonds.
In the eve nt th e amount s credit ed to the Bond Ac co unt are in suffi cie nt to pa y th e principal of,
pr emium if any, or int eres t on Bond s when due , th e City shall tran sfer from the Re se rve Account
to th e appropri ate sub accou nt or s ub acco unt s of th e Bond Ac co unt an amo unt which, when
combined with moneys in the subacco unt or sub acco unt s, will be su fficient to make such
payments when due .
(b) Funding a11d .:taintenance of Required R eserve Amount. The C ity shall , upo n
deli very of th e Bonds, credit to the Res erve Account the amount requ ired by the Section her eo f
enti tled "Initial Credit of Bond Proceeds.• Th e Reserve Account sha ll be mai nt ai ned in the
umount of the Required Reserve Amo unt until such time as the r,mount credited the 1.::i:o , when
co mbin ed with moneys in th e Bond Acco unt, wi ll be suffici ent to r ay the prin cip al of, premium if •
an y, and interest on all of th e Bonds , at whi ch time such mon eys inay be applied for such
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purp ose . If at an y tame th e amount of th e Rese rve Acc ount is less than th e Req uir ed Re se rve
Amou nt , then th e Ci ty shall dcposil to the Re se rv e Accou nt from the Ne t Reve nu e, amou nts
suffi cie nt to bring th e amount cred it ed to the Re se rv e Account to the Required Re serve Amoun t.
Such deposits shall be made as soon as po ssible afte r such use, but in accordance wi th and subject
10 the limitati ons of the Sectio n here of entitl ed "Sec urity fo r Pay ment of Bonds ; Flow of Funds."
The Requ ir ed Re se rve Amount shall be fu nded and ma int ain ed by any one of or any
co mbin ation of (i) cash; (ii) Perm itt ed Inv estments ; and (iii) a Re serve Acco unt Co n1rn ct whi ch
provides fo r pay men ts when an d as required for purp oses of the Re se rve Ac co un t and is issued by
an ob li go r whose ob li ga tion s s uch as the Rese rve Acco unt Contra ct are either (A) rated by a
Rating Age ncy as in ves 11n ent grade or (8) if a ratin g has been obtained on 1hc Bond s or any
Parit y Li en Bonds whose obli ga tion s are rated by each Rating Ager.cy th at th en maint ain s a ra tin g
on th e Bonds or any Parit y Li en Bonds in a category (o r compara '>lc cl ass ific ati on) equ al to or
high er th an th e ca te :isc,ry , if any, in which the Bo nd s or any Par i1y Li en Bond s are rated . A
Re se rve Acco unt Contract shall sa ti sfy the Required Reserve Am osnt by the amount pa ya bl e 10
the Ci ty pursuant to such con tract.
(c) Va luation and Interest Income. Moneys credited to the Re serve Account may
be in vested or depo sit ed in securities or obli ga ti on ~ which are Pennitted Inve stments; how eve r,
such in ves tment s shall be valued at fair market va lu e and marked to market at leasl once per yea r.
Additionally, the in vest ment of moneys cred it ed to th e Rese rve Acco unt shall be subj ec t to the
co ~enants and provi sions of th e Sec ti on hereo f en titl ed ''Di s pos ition and In ves tm ent o f Proceeds ;
Tax Covena nts." Except to the ex tent otherwise requi red by s uch Section, so long as the amoun t
o f the Reserve Ac count is equal to th e Requi red Reserve Amount , all int eres t inc ,)me fr om th e
investment or reinvestment o f moneys credited to the Re serve Account shall be c1edited to the
Interest Subaccount and/or th e Principal Subacco unt , as may be detennined by the City ; provided
th at if the amount of the Reserve Account is less tha n the Required Re se rve Amount , th en such
int erest incom e shall be credited to the Re serve Account. The amount on deposit to the Res erve
Acco unt shall ne ve r exceed the amou nt o f the Required Re se rve Amount.
Section 15. Call and Paymcnl of Refunded Bonds .
(a) Afaintena11ce of Escrow Account. Th ere is hereby es tabli shed a s pecial acco unt
designated as the "Golf Co urs e Revenue Bond s, Seri es 1994, Esc row Account," whi ch shall be
mnin1nined in accordance with the prov isions here of and of th e Escrow Ag re ement. Th e Escrow
Account shall be maintained in an amo unt at the tim e o f the initial deposit s therein and at all
time s subse quentl y at least sufficie nt , together with the kn ow n minimum yie ld to be deri ved fr om
th e initial in vestmen t and r ny temp orar y rei nves tment o f th e depos it s th erein or an y part thereo f
in Fcdt>r:,1 Securitie s to pa y th e Refunded Bond Requirements . Except as may be otherwise
prov iJ..:d ir. the Esc row Ag reeme nt , the Ci ty shall have no right or title to th e moneys credited to
or held in th e Esc row Acco unt , and s uch tit le shall be and is here by tra ns ferred to th e Escrow
Age nt in tru st fo r th e pay ment o f the Refunded Bc,11d Requirements. Monc r shall be withdra wn
by the Esc row Agent fr om the Escrow Account in suf!icicnt amounts and at ;ch times lo permit
the payment with o ut defau lt o f the Refunded Bond Req uirc1,,ents . If for an y reason th e amoun t
in th e Esc ro w Accou nt shall at any time be in s uffici cn1 fo. th e pu rpose hereo f, the City shall
fo rth with fr om the fir st mone ys ava ilabl e th erefor depos it in such ac count such additi ona l mvneys
us shall be necessary to pennit the pa yment in full o f the Refunded Bond Req ui reme nts.
(b) Ca ll of Ref11nded Bonds. Th e Co u-ci l docs hereby dec lare it s in tent to exerc ise
on behalf of and in the name o f the Cit y it s op iion ll redee m on all o f th e Refu nded Ilo nds ·m th e
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Rcdl!mpt ion Date . The City hereby uu1ho rizcs ;111d irrevocab ly in struct s the Es crow Age nt to give •
or cause to be given a notice o f refu nding, dcfcasa ncc :md rede mpti on of th e Refu nded Bonds .
Section 16. Various Fi nd ings, DNcrmimllions, Declara tions and Covc nanls. Th e Co unci l,
having bee n full y inform ed of and having conside red all th e pertinent facts and circumstance s, hereby
finds, determ ines, declares and cove nant s with th e Ow ners of th e Bond s th at:
(a) th e Cit y has ente red into a OT C Letter of Represe ntati ons whi ch will govern th e
boo k-cn lry reg istrati on sys tem fo r the Bonds;
(b) it is in the be st int eres t of the Cit y und it s res id ent s th at th e Bonds be aut horize d,
so ld , iss ued and deli vered at th e tim e, in th e mann er and for the pu rposes provided in thi s
O rdi nance;
(c) the Cit y el ects to ap pl y the provisi ons of th e Part 2 of Art icle 57 of Titl e 11,
C.R.S., as amend ed; and
(d) the iss uance of the Bonds and all proce dure s undert aken incident there to arc in
full comp li ance an d confo rmity with all appli cab le requ ire me nt s, provi sions and li mitati ons
prescrib ed by th e Con stituti on and laws of the St ate and the City, includ ing th e Charter, an d all
conditi ons and limitations of the Chart er and other app li cabl e law relating to th e is suanc e of th e
Bonds have been satisfied .
Section 17. Investments. Moneys depo sited in the Bond Acco unt and the Reserve Account ,
and any money s held by the Paying Age nt with respe ct to th e Bond s, shall be inve sted in Pcm1ittcd
In vest ment s, provid ed that the inv es tm ent of s uch moneys shall be subject to any app li ca ble res tri ct ions •
se t forth in th e Tax Complian ce Certificate and in the "Tax Co mplian ce Certificate" or simil ar certificate
deli vc rtd by the Cit y in co nnec ti on wit h the issua nce of th e Bond s th at describes the Cit y's ex pcctuti ons
rcgardin 1; the use and in ves tm ent of procee ds of the Bonds and other money s and the use of the Project.
Un less otherwise pro vid ed herei n, all intere st in come fr om th e in vestme nt or rei nves tment of moneys
cred ited to any accou nt or subacco unt estab li shed herei n shall rem ain in an d become part of such accou nt
or suba cco unt.
Section 18 . Maintenance of Rates and Coverage. The Cit y hereby cove nants that it will
estab li sh, maintain, enforce and co ll ect rates, fees and charges for se rvi ces furni shed by or th e use of tf,c
Go lf Cou rse Facilities to crea te Gross Reve nu e each Fisca l Year sufficient to pay Operati on an d
Maint enan ce Expenses and to crea te Net Rev enue in an amo unt : (a) equ al to not less th an 135% of th e
:m10u111 neces sary 10 pay when due the princi pal of and int erest o n the Bond s and any Parit y Li en Bond s
co min g due d urin g s uch Fi sca l Yea r; an d (bJ to make up any defi ciencie s in the Re serve Acco unt and any
rese rve accoum estab li shed fo r Pari ty Li en Bonds . In the eve nt that the Gross Reve nu e at any time is not
s uflic1cnt to make such pay men ts, th e Ci ty shall in crease such rates , fees and charges to ;m ex tent whi ch
wi ll en sure the pa yment s and accumulalions required by thi · Ordinan ce.
Sect io n 19 . Additiona l Cove nants and Agreements . The Cit y hereby further irre vocab ly
covenan ts and agree s with eac h .:md every Ow ner tlrnt so long as any of the Bonds re main O ut sta nding :
(a) Competent Ma11agemt11t. The Cit y shall employ competent munagemcn t
perso nnel for the Go lf Course Fac il ities and will con ti'lu c to operate and manage the Go lf Course
Faci liti es in :.m efficient and eco nomi ca l mann er in ac<.o rd ancc with all app li cab le law s, mies and •
regula ti ons .
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(b) Maintenance of Records and Accounts. The Cit y shall keep proper books of
record and accounts showing complete and co rrect entries of all transactions relating to the funds
and accounts referred to herein and in suc h manner th at the Gross Revenue and the Net Revenue
may at all time s be readily and accurately determined .
(c) Alienation of Prop erty . The Ci ty will not sell or alien ate any of the pro perty
co nstituting any part or all of the Golf Cou rse Facilities in any manner or 10 any ex tent as might
red uce the secu rity provided for the payment of the Bond s, but th e City may se ll any portion of
suc h property which shall have been replaced by oth er simil ar prope rty of at least equal va lue , or
which sha ll cease to be necessary for the effic ient operat ion of the Golf Course Facilities;
provided howe ve r, that the proceeds of any suc h sa le of property shall be included as part of the
Gross Revenue.
(d) Payment for Use and Se rvices. The City will promptl y render bills for services
furnished by or the use of the Golf Course Facilities, shall use all legal me ans to assure prompt
payment thereof, shall take such ac tion as may be necessary to mak r delinquent rates, fees and
charges of the Golf Course Facilities a lien upo n the re al propert y served . So long as an Event of
Default has not occurred and is continuing hereunder, the City shall , in its discretion, be en titl ed
to provide a reasonable le vel of complementary and free use of the Golf Course Faci lities .
(e) Audits. At least once a year in the time and manner provided by law , the City
will cause an audit to be performed of the records relating to the revenues and expenditures of the
Golf Course Facilities. Such audit may be made part of and included within the general audit of
the City, and made at the same time as the general audit. In addition, at least once a year in the
time and mann er provided by law , the City will cause a budget to be prepared and adopted .
Copies of the budget and the audit will be filed and recorded in the plac es, time and manner
pro vided by law .
(f) Insurance. The City will carry suc h forms of in surance on insurable Golf
Course Facilities property as would ordinarily be carried by utilities having similar properties of
equal va lue , such in surance being in suc h amounts as will protect the Golf Course Facilities and
its operation. In the event of any loss or damage to the Golf Course Facilities , or in the event part
or all of the Golf Course Facilities is take n by the exercise of a p we r of eminent domain , the
in surance proceeds or the condemnati on award sha ll be used for resto r::1g, repl acing or repairing
the property lost , damaged or tak en, and the remaind er thereof, if any, shall be co nsi dered as
Gross Revenue; pro vided, however , that if the Cou ncil determine s that the operation of the Golf
Course Facilities an d the sec uri ty for the Bonds will not be adversely affe ct ed thereby, the
Council may detennine not to re sto re , rep lace or repair th e property los t, dam aged or tak en and
all of the in sura nce proceeds or condemnation award shall be co nsidered as Gros s Reve nu e.
(g) Surety Bonds. Each City officia l or other person having cu stody of an y funds
derived from the operation of the Golf Co urse Facilities, or re sponsible for the handling of such
funds, shall be fully bond ed at all time s, which bond shall be conditioned upon the proper
ap plic atio n of said funds .
(h) Enterprise Status . Th e City has established, and covenants to continue to
maintain, the Golf Course Facilities as an "c nterprisr." within the meaning of Article X,
Section 20 of the Colorado Constitution; provided , howe ve r, after calen ar year 2003 the City
ma y disqualify the Go lf Course Fac ilitie s as an "e nterpri se" in any year in which said
disqualification doe s not ma terially, adversely affect th e enforceability of the covenants made
pur sua nt to thi s Ordinance. In th e event the Golf Course Facilities arc disqualified as an
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enlcrpri se und the enforceability of th e covena nt s made pursu ant to thi s Ord inance arc matcriull y, •
adve rsely aflec ted , th e City cov en ants to imm edia tely take all ac ti ons necessary to (i) qua lify the
Golf Course Fa cil ities as an ent erprise wit hin the meaning of Arti cle X, Se ction 20 of the
Co lorado Co nstituti on and (ii ) permit th e enforce ment of th e covcn:u11 s mad e herei n.
(i) Protectio11 of Sec11rity . The City , it s officers, agents and emp loyees, shall not
take any ac tion in such manner or to such ex tent as mi ght prejudi ce the sec urity for th e pay ment
of the prin cip al of an d interes t on the Bond s and any ot h ,r sec urities pa ya ble from th e Net
Reve nue accord in g to the tenns th ereo f. No contrac t shall b,~ ente red into nor any oth er ac tion
taken by which the rights of the Owners mi ght be prejudici all y and materi ally imp aired or
dimini shed .
Section 20. Additional Bonds .
(a) No tuperior Lien Bond.t . No bonds , notes , int erim sec uriti es or oth er
obligation s shall be iss ued pa ya ble fr om the Net Revenue and hav ing a li en thereon which is
superior to the lien of the Bonds .
(b) Parity lien Bo11ds . The City may issue Parity Lien Bonds if:
(i) As of the date of issuance of the Parity Lien Bond s the Ci ty is in
sub stanti al com pli ance with all of th e cov enants of this Ordi na nce;
(ii) As of the date d is suance of th e Parity Lien Bonds the City is c urrent in
th e accumulation of all amount s req uired to be then accumu lated in th e Bond Account
and the Re serve Ar.count ;
(iii) For any 12-month period durin g the 18-mo nth period immediately
preceding the date of issuance of such Parity Lien Bonds , tic Ne t Revenue is sufficient to
pay an amoun t representing not less th an 12 5% of •he Combi ned Maximum An nu al
Principal and Interes t Requirements for the Outs tana .. . Bonds, Outstanding Parity Lien
Bonds , ii any , and the Parity Lien Bond s propo se d to bo issued. For purp oses of such
test , if th ere has been ado pted a sche dul e of increases in rates, fees an d charge s during the
preceding 18-month period , the Net Revenue may be inc re ased for th ose months in whk h
suc h increase was not in effect fo r the 12-m on th period in wh ich such calc ul at ion is m:,Je
by add in g to the act ual rev enue s for such period an esti mated sum equ al to I 00 % of the
es tim ated increase in revenu es whic h wo:Hd have been realized during said period had
such increase been in effect for the enti re 12 -m on th period (the requirement se t ib nh in
thi s subparagraph (iii) shall not apply 10 any Parity Li en Bonds iss ued for th e purp os e of
refundi ng less than all of the Outstanding Bonds); and
(iv) The ordi nance, indenture or oth er document pro viding for th e iss uance of
th e Parity Lien Bonds mu st provide fo r a re serve account , which is establi shed in the
amou n~ of the Parity Reserve Amount, and a bond acco unt for the Pari ty Lien Bonds ;
such ac count s mu st be es tabli shed and maintained on sub stantiall y the sa1.1c terms and
conta in substantially the sa me provisions as se t froth in thi s Ordinance frr th e Reserve
Acco unt and the Bond Ac co unt , re spectively .
A writte n cert ifi ca te by the Ci ty Manager that th e co nditi ons set forth · .. uragraph s (i)
and (ii) above have been met, and a writt en cert ifi cate by a Certi fi ed Publi c Accountan t or •
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Consultin g Engin eer th at th e condition set fo rth in para graph (ii i) above has been met, shull
co nclu sively detenninc th at such co nditi ons hav e bcl.!11 'Ti et in uc cord:mce wilh th e tcnn s hereo f.
(c) Subordi11ate lien Bonds. So long us no Even t of Default shall have occ urred
and be co ntinuin g, not hin g herein shall pre vent th e Cit y from iss uin g Subordin ate Li en Bond s.
Section 21. Ddeasancc. Wh en nil prin cip al, intere st nnd pr emium s, if any. in co nnc c1i on
with a Bond has be en dul y paid , the pledge and li en and all obli gati ons o f the City hereunder shall th ereby
be di scharged with re spe ct to sa id Bond and the Bond shall no longer be deemed to be Out standing .
There sh all be deemed to be such due payment when the C ity ha s placed in escrow and in tru st with a
commercia l bank located within or without th e Stat e of Colorado, and ex ercising tru st powers , an amoun t
sufficient (including the known minimum yi eld from Defeas ance Securitie s in which such amount may be
initi ally invest ed) to meet all requirements of principal , interest and premium s, if any , as the same become
due to th eir final maturities or upon designated prior redempticn dates . The Dcfeasance Securities shall
become due at or prior to the re specti ve times on which the proceeds thereof shall be needed , in
acco rdance with a schedule established and agreed upon between the City and such bank at th e time of the
cre ation of the escrow , or the Dcfeas ance Securitie s sha ll be subject to redemption at the option of the
holders thereof to assure such availability as so ne eded to meet such schedule. The sufficiency of the
escrow shall be determined by a Certified Publi c Accountant.
Section 22. Events of Default. The occurrence or existence of any one or more of the
following events shall be an Event of Default hereunder:
(a) payment of the principal of or redemption premium on any Bond is not made by
the Ci ty when due;
(b) payment of the interest on any Bond is not made by the City whe n due;
(c) the City defaults in the performance r,f any other of its covenants in this
Ordinance , and such default contin ues for 30 days after written notice specifyi ng such default and
requiring the same to be remedied is given to the C ity by the Owners of 25 % in ag gregate
principal amount of the Bonds then Outstan~ing; or
(d) the City files a petition und er th e fed eral bankru ptcy la ws r · other applicable
bankruptcy law s seeking to adjust the obligations represented by the Bonds .
Section 23. Remedies For Events of Default . Upon th e 01 urren ce and continu ance of an
Ewmt of Default , th e Owner of any Bond , or a tru stee therefor, may proh . and enforce the right s of any
Ow ner b y pro per legal or equitable remedy deemed most effectual in ;luding mandamus, specifi c
performance of an y cove nant s, injun ctive relief or n:quiring the Co unci l to ... ..:t as if it were the tru stee of
an f!Xpre ss tru st, or any combin atio n of such rem edi es . All proc eedings shall be main rn incd fo r th e equal
be nefit and protection o f all Owners. An y receiver appointed to protect the rights of Owners may take
po ssess ion of and operate and maintain the Golf Cour se Facilitie s in the sa me manner as 1he City it self
might do . The failure o f any Owner to proceed docs not relie ve the C ity or any pers on of any liab ility for
fa ilure to perfo rm any duty hereund er. The fo rego ing ri ~hts arc in ad di tion to any other rig ht , and th e
exercise of an y right by any Owner shall not be deem ed a wa ive r of an y oth er right .
Section 24. Permitted Am endments to Bond Ordinance . Th e C ity may , with o ut th e
conse nt of or notice to th e Own ers, Jdopt amend ment s or suppl ement s to thi s Ordinan ce, whi ch
am endm ent s or supplem 1.:nts sh all thcre atl er form a pa rt hereo f, fo r any one or more of the fo ll ow ing
purposes :
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(u) 10 cure uny ambig uit y, 10 cure , co rrect or supplem ent nny forma l defec t or
om is sion or inc onsis tent prov is ion co nt ained in this Ordinance, to make any provis ion nece ssary •
or de sirable due to n change in law , 10 make any provi sion s with re spec t 10 matter s arising under
thi s Ordinance , or to make any pro visions for any oth er purpose, if suc h provi sions arc nec essary
or dcs irnble an d do not mat erially adverse ly affect th e in tere sts of th e Owner s of the Bond s;
(b) to subje ct to this Ordinan ce or pledge to th e payment of the Bond s additional
rev cnw c~, properties or collateral ; and
(c) to grant or confer upon the Owners any additional right s, remed ies, powers or
autho rit y th at may be la wfu ll y granted 10 or co nferred upon the Owners.
Section 25. Amendments Requiring Consent of Owners . Except fo r amendatory or
su pplemental ordinan ces adopted pursu ant to the Section hereof entitled "Pcnnittcd Amendments to Bond
Ordinance /' the Owners of not le ss than two thirds in aggregate princip al amoun t of the Honds then
Out standing sha ll have the right , from time to time , 10 con se nt to and approve the adop ti on by the City of
suc h ordin ances nmendatory or supple me nt al hereto ns sha ll be deem ed ne cess ary or de sirable by th e City
for the purpose of modifying, altering , amending , adding to or rescinding , in any particular , any of the
terms or provisions contained in this Ordinance; provided however, that wi th out the consent of the
Owners of all the llon<is affected thereby , nothing herein co ntain ed shall permit, or be construed as
permitting:
(a) a change in the term s of the maturity of any Bond, in the princip al amount of any
Bond or the rate of interest thereon, or in th e terms of prior redemption of any Bond;
(b) an impainnent or the right of the Ow ners to in stitute suit for the -:n forcemcnt of •
any payment ofthc principal of, premium if any, or interest on the Bonds when due;
(c) the crea ti on of a li en upon the Net Revenue ranking prior to the lien of the
Bonds;
(d) a privilege or priority of any Bond or any premium or int erest pa yme nt over any
ot her Bond or premium or interest payment ; or
(e) a reduction in the percenlP~e in principal amount of the Bond s the co nsent of
whose Owm:r s is required for any such amen . tory or supp lementa l ordinance .
If at any time the City sha ll desire to adopt an amcnda tory or supplementa l ordinance for any of
th e purposes of th is Section , the Ci ty shall cau se notice of the propo se d adoption of such amendatory or
supp lemen tal ordi nance to be given by mailing such noti ce by cert ified or regi stered first class mail to the
Purch ase r and to each Owner of a Bo nd to th e address shown on the regi stration bo oks of the Bond
Registrar , at least 30 days prior to th e ropo sed date of ado pti on of any such amendatory or supplemental
ordinance . Such notic e shall briefly set forth th e nature of the proposed amcndatory or "· •plcmental
ord in ance and sh all state that copies thereof arc on file at the offices of the Ci ty or so me .,e r sui tab le
locati on for in spection by all Owners . If, within 60 day s or suc h longer period as shall be presc rib ed by
the Cit y following the giving of such notice , th e Owners of not le ss than the required percentage in
ag gregate principal amount of th e Bonds then Outstanding at the time of the execution of any such
amcndat ory or supp leme nt al ordinance shall have consented to and approved the execution thereof as
herein provi ded , no Owner of any Bond shall have any right to object to any of the terms and provisions
co nt ained therein, .-.r the operat io n thereof, or in any manner ',-> questi on the propriety of the adoption and •
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dfcctivencss th ereo f, o r to enj oin or re strain the Ci ty from adop ting the same or fr om taking any :1ct ion
pur sunm to the pro visions there of.
Section 26. Effc cl of A mendment. Upon the execu tion of any :uncndatory or su pplemental
ordin ance pursuant to this Ordinance , thi s Ordinance shall be de eme d to be modified and amended in
accordance therewith, and the re s pecti ve ri ght s, duties and ob li ga ti ons under thi s Ordinance of the Cit y,
the Bond Registrar , the Paying Age nt and all Ow ners of Bonds th en Ou tsta nding shall thereafter br;
determined, exercised and enforced hereunder, subje ct in all re spec ts to suc h mod ifi ca ti o ns and
amendm ent s.
Sectio n 27. Rcm o\'a l or Resignation of Bond Reg ,~trar or Paying Agent; Successors. The
Paying Agent and Bond Regis trar muy re sign , or be removed by the City at any time with or withou t
cause. In the event of the remo va l or resign ation of the Bond Regi stra r or Paying Agent, the City shall
appoint a successor as soon thereafter as may be practicable, ;,nd in such event, shall give written notice
ther eof to each Owner by mailing to the addresses shown on th e regi stra ti on books for the Bonds. Any
successor Payi ng Agent shall: Le a trust com pany or bank in good standing located in or incorporated
under the laws of th e State ; be duly authorized to exercise trust powers; be su bject to exa mination by a.
federa l or sta te authority ; an d maintain a reponcd capita l and su rplu s of not le ss than SI 0,000,000.
Section 28. Authorization To Execute Documents . 1 nc Mayor and any other City official
shall, and are hereby authorized and dire cted officer or to take all actions necessary or appropriate to
effectuate the provi sions of this Ordinance, including, but not limited to , execution of such agreements,
certificates and affidavits as may be reasonably required by the Purchaser. For a period of 60 da ys
fo ll owing the adoption of thi s Ordinan ce, the Sale Delegate is authorized to executed the Bond Pu,r.ha se
Agreement, which shall be in substantially the form pre sented to the City at thi s meeting and shall be
comp leted in accordance with the terms of thi s Ordinance . The Mayor, the City Clerk and all other
officers of the City are hereby autho ri zed and directed to execut e the Continuing Disclo su re Undertaking,
the Paying Age nt Agreement, the Escrow Agreement , a "Tax Compliance Certificate" or similar
certificate des cribing the City's expec tations regarding the use and investment of proceeds of the Bonds
and othe r mone ys, an Internal Revenue Servi ce Form 8038 -G with respect to the Bond s; and all other
documen ts and cenificates necessary or desirable to effectuate the is suan ce of th e Bonds, the use and
in ves tm nt of proceeds of the Bonds and the other tran sactions co nt emplated her eby (together the
.. Financing Documents"). The execution of the Bond Purchase Agreement by the Sa le Delegate and the
exec1Jtion of the 1\.fayor and any other City officer or officia l of the Financing Documents authorized
herein shall be co nclu sive proof of the approval by the City of the tenns th ereof.
Section 29. Official Sta teme nt. The Pre liminary Official Statement is hereb y authori zed and
approved. The Preliminary Offici al Statement is hereb y deemed by the Counc il to be final as of it s date
withi n the meaning of Ruic I 5c2-l 2(b)(I) of the U.S. Securities and Exchange Commission. The Counci l
her eby aut horizes the prepara tion and distributi on of a final Officia l Statement in co njun cti on wi th an
offer of the Bonds to 1he p11blic . The Officia l Stutcment shall conta in su ch co rrec ti ons and additi ona l or
up dat ed irformation so that i1 will not contain an y untrue stat ement of a material foct or 1.:mit to state a
mater ial fact necessary in o rd er to make the stateme nt s made the rein, in light of the circ um stance s und er
which the y were made , not misleading. The Mayor is hereb y allthorized to execute copies of the Ollicial
Statement on behalf of the City.
Section 30. Holidays . If th e date fo r making ony payment or performing any action
hereu nder shall oe a legal holid ay or a rlay on which the principal office of the Pay ing Agent or Bond
Re gistrar is authm'izcd or required by lu w to remain close d, such payment may be mad e or act pcrfom1ed
on the nex t succeeding da y whic h is not a lega l holiday ur a day on which the principa l offic e of the
Pa ying Agent or Bond Regi str ar is auth ori zed 01 requ ired by law to remain closed .
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Section 31. Limitation of \clions . In acco rduncc with Sec ti on 11 -5 7-2 12, C.R.S., no lcgu l
or equi table nc tion ca n be brou ght wi th re spec t tc any legis lative acts or proceedings in connec ti on wit h •
the auth ori za ti on or issua nce of th e Bonds mo re it.an 30 days after the iss uan ce ur aut horiza tio n of such
sec uritie s, whi cheve r occu rs Inte r.
Section 32. Pl edg e of Revenues. The crea ti on , perfe ctio n, enfo rcemen t and pr io rit y of the
pl edge of re ve nues to sec ure or puy the Bonds shall be governed by § 11 -57-2 08 , C.R.S . and thi s
Ordin ance. The Pl edged Re venu e shall immediately be subject to the lien of suc h pl edge wit hout any
phy sica l deli very, filing or furth er act. The li en of such pledge on the Pledged Re ve nu e shall be on a
parity wit h all ot her Parity Li en Bonds, and shall have priority ove r any and all ot her ob li gatio ns and
li abi lities of the Cit y. The lien of such pl edge shall be valid , binding and enfo rceab le as aga in st all
perso ns havi ng claim s of any kind in tort 1 contract or oth erwi se agai nst th e C it y irrespec ti ve of whether
such perso ns have noti ce of such lien s.
Seclion 33. No Recourse Against Officers and Agents. Pursu ant to § 11-57-209, C.R.S., if
a member of the Council , or any officer or age nt of th e City acts in good faith , no civi l rec ou rse shall be
avail able agai nst suc h member, officer or agent for payme nt of the principal , int erest or prior redempti on
premiums on the Bonds . Such recourse shall not be avai lable either directly or indirect ly thro ugh the
Council or th e City, or ot herwi se, whether by virtue of any constitution, statute, rul e of law, t:nforc cment
of penalty , or otherwise . By the ac ceptance of the Bond s and as a pnrt of the co nsid erati on of th eir
issuance, any person purch as ing or selling su ch Bond specifi ca ll y waives any such reco urse .
Section 34. Conclusive Recital. Pursuant 10 § 11-57-2 10 , C.R.S., the Bonds shall contain a
recit al that th ey are issued pursuant to certain provi sio ns of th e Part 2 of Article 57 of Title 11 , C.R.S.
Such recital shall be concl usive evidence of th e va lid ity an d the rcg ,larity of the issuan ce of the Bond s •
aft er their deli ve ry for value .
Section 35. Costs and Expenses . All costs and expenses incu rre<l in connection with th e
iss uance and payment of the Bon ds sha ll be µaiJ from lega ll y ava il able mone ys of the City, and such
mone ys are hereby appropriated for 1ha1 purpose .
Section 36. Ratification and Approval of Prior Acti ons . All ac tion s heretofore take n by th e
officers ~ ~ •he Cit y and th e members r.f the Counci l, not in co nsistent with th e provisi ons of thi s
Ordi nance , relating to the auth ori za tion , sa le, iss uance and de li very of the Bonds , are hereb y ratified ,
appro ved and confirmed .
Section 37. Ordh.ancc l r repeal a ble. Afte r any of the Bonds have been iss ued, this
Ordinance shall con stitut e a contract betwee n th e Owners an d the Cit y, an d shall be and remain
irrepca lab le unt il th e Bonds and the int erest acc ru ing thereon sha ll ha ve been fu ll y paid, sa ti sfi r.d and
di sc harge d, as herei n pro vi ded.
Section 38. Rep ea ler . All orders, by laws an d ordin ances of the City, OI parts thereof,
in co nsiste nt or in con flict with this Ordin ance , are hereby rcp eafl!..i to the ex tent onl y of such
inconsi sten cy or co nfli ct.
Section 39. Severability. If any sec tio n, paragraph, clau se or provi sion of this Ordin ance
shall fo r any reaso n be held to be invalid or unenforceable , the in va lidit y or un enforceability of suc h
sect ion, paragraph , cla use or provi s:0 11 sha ll not affec t any of the rem aining provis ions of th is Ordinance,
the intent being that the same are severable .
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• Section 40. Emergency Statement. Ba se d on ndvice of th e personne l of th e City's
adm ini stration , the Council has determined that, due lo the ability of the City 10 designate th e Bonds as
qualified tax-exempt ob lig at ions pursuan t to paragraph (d) of Sec ti on 9 of thi s Ordinance and future
uncertuinties concerni ng the municipal bond market and current interes t rates, the City shou ld proceed
immedi ately wi th this issue for th e needs of lhe City. Therefore a public eme rgency is declared lo exist
an d th is Ordin ance is dec lared to be necessary fo r the imm ediate pre serva tion of the public prop erty ,
health , peace and safe ty. This ordina nce shall be publi shed as requi red by the term s of the Charter .
lntroducco, read in full, and passed on fir st reading as an emerge ncy Bill fo r an Ordinance at a
Specia l Co unci l Meeting on the 8th day of December, 2003 .
Publi shed as an emergency Bill fo r an Ordi 1 ance on the 12~ day of December, 2003 .
(SEA~)
Read by tille and pas sed on final read in g as an Emergency Ordinance on th e 15th day of
Der.embe r 2003 .
Publish ed •y Lille as Emergency Ordinance No.8;l Series of 2003, on th e
I 9th day of Dece mber, 2003.
I, Loucrishia A. Ellis, City Clerk of the City of Englewoo
and foregoing is ~e co py of the Emergency Ordin ance passe
Ordinance No . ...i2.-f-• Series of 2003.
olorado, hereby certi fy that th e above
tinal re adi ng and published by tille as
No . R
Interest Rate
REGISTERED OWNER:
APPENDIX A
!FORM OF BO NDI
(Fro nt ofBond]
U:'\ITED STATES OF AMERICA
STATE OF COLO RADO
CIT\' OF ENGLEWOOD
Acting By and Tluough It s
GOLF COURSE ENTERPRISE
GOLF COURSE ENTERPRISE REVE NUE BO ND
SERIES 2003
Mnturily Date Dat ed Date
Cede & Co.
Tax Identification Num ber: 13 2555 11 9
s __ _
CUS IP
PRINCIPAL AMOUNT : ____________________ DOLLARS
C ity of Engle wood, Co lorado, a dul y orga nized and va lidl y ex isting City and municipal
co rporati on or th e State of Co lorado. acting by and throug h the Go lf Co urse Enterprise (th e "Ci ty") for
value received , hereby promises to pay, so lely out of th e spe cial accounts here inafter de signated but not
otherwi se, to the reg istered ow ner named above, or reg istered ass igns, on th e mat urity date specifi ed
above or on th e date of pri or redemption , tht! princ ipa l amount specified above . In like manner th t: Cit y
promi ses to pay inter es t on suc h prin cipal amount (co mputed on the ba sis ofa 360-day yea r of twe lve 30-
day months) from th e Dated Dale spec ified above, at the int eres t ra te per annum specifi ed above, payab le
sc miannuall v on ____ an d ____ eac h yea r, comm encing on ____ , 2004 , until
th e principal amo unt is pa id at maturit y or up on pri or redempti on. The prin ci pal of this Bond and
premium , if any, are payable in law ful money of the United States of Ame ri ca to the regis tered owner
her eof up on matu rit y or prior re demp ti on and pre se ntation at th e principal office of The Bank of Cherry
Cree k, a branch of Wes tern Nationa l Bank (t he "Payi ng Agent"), or it s s uccesso r, as Paying Age nt.
Payment of eac h in stallme nt of in teres t shall be made to th e regi ster ed ow ner here of whose name
shall appear on th e reg istration bo oks of the City maintai ned by or on bchalr of the Ci ty by the Pa ying
Age nt , or its s uccessor, as Bond Registrar, at the close of busi ness on th e fift ee nth da y of th e ca lend ar
mon th ne xt pre ce ding eac h int eres t paym en t da te (the "Record Date "), and shall be paid by check or draft
of the Paying Age nt mailed on or befo re the inte res t payment date to s uch registered ow ner at hi s add ress
as it appea rs on s uch reg istra ti on books . The Pa ying Agent m:1 y make pay ments of interest on any Bond
by s uch alt ernati ve mean s as may be mu tua ll y agreed to betwee n th e registe red owne r of suc h Bond and
the Payi ng Agent, as provi ded in the ordi nance auth oriz in g the iss uan ce of this Bond (the "Bo nd
Ordi nance"). Any s uch interest not so time ly paid or duly provi ded fo r shall cea se to be pa yab le to th e
perso n who is the reg istered ow ner her eof at the close of business on the Rec-o rd Date and shall be
pa ya ble to the person who is the regis tered owne r hereo f at the close of busin ess on a spec ial rec ord date
(the "Special Record Date ") estab li shed fo r th e pay ment of any defa ulted interest. Notice of the Specia l
Record Date ,md th e dat e fixed for the paym ent of defaulted interest shall be gi ve n by fi rs t clas s mail to
the regis tered ow ner here of as shown on th e registrati on books on a da1c selected by the Bond Registrar.
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If lhe dntc fur making an y pay ment or perfonnin g any act ion shall be a legal holi day or a day on
whi ch the prin cip al office of the Payin g Agent or Bond Regi str ar is auth ori zed or requi red by law to
rem ain closed , such payment ma y be made or ac t pcrfonn ed on the nex t succe eding da ) whi ch is not a
lega l holiday or a doy on which the principal office of the Pay in g Ag ent or Bond Regi strar is auth ori zed
or requi red by law tc rem ain closed .
Th is Bond is one of a series aggreg ating $ ___ par va lue , all of like date, ten or and effe ct
ex cept as to number, principa l amoun t, intere st rate and date of maturity, is sued for the purpo se of pay in g
the co sts of providing certain Go lf Cou rse Ent erprise facilities and imp ro vemen ts, by virtue of 1nd in fu ll
conformity with the Co nstitution of the Slate of Colorado ; the Cit y Chaner; Tit le 11 , Ani clc i 7, Pan 2,
C.R.S.; and all oth er laws of th e State of Co lorado th ereunto en ebli ng, and pursuant to the du ly ad opted
Bond Ordinance . Pursua nt to § 11-57-210, C.R.S., such recital sha li be con clusive evidenc e of the
va li dity and the reg ulari ty of the issuance of the Bond s afte r their de li very for value . It is hereby recited ,
cen ifi ed and warrdnted th at all of the requiremen ts of law have been full y complied wit h by the proper
officers in issuing thi s Bond.
The principa l of, premium if any, and interest on this Bond are payable only out of: (a) a spec ial
account designated as th e "Golf Course Enterprise 2003 Bond Ac co unt," into which the City covenan ts
and agrees to deposit , from the re ve nu es derived from th e operat ion of the golf course facilities
compri sin g the Go lf Course En terprise after deduction of operations and maintenance costs (the "Net
Revcnue")1 amou nt s sufficient to pay the pri ncipa l of and interest on the Bonds when the same become
due and payable; and (b) if necessary , a special acc ount de signated as the "Go lf Course Enterp ri se 2003
Bond Re serve Accou nt ," all as more pani cularly set fort h in the Bond Ordinance . The Bond s sha ll
consti tut e an irrevocable and first li en upon the Net Revenue , but not neces saril y an exc lu sive such lien .
Subject to ex pr essed condi ti ons, ob li ga tions in addition lo the Bonds of thi s issue may be iss ued and made
payable from the Net Revenue ha ving a lien th ereo n su bordin ate and junior to the li en of the Bonds of th is
iss ue or, subje ct to additional exp re ssed conditions, having a lien on the Net Reven ue on a parity with the
lien of the Bonds of this issue , in accordan ce with the provisions of the Bond Ordinance .
It is hereby recite d, ccnificd and warran ted that for the payment of this Bond , the City has created
and will maintain the special acco un ts referred to above , and will dep os it therein out of the Net Revenue
the amounts specified in th e Bond Ordin ance , and out of such accJ unt :J , as an irrevocab le char ge thereon ,
wi ll pay the principal of. premi1 =n if any, and inter est on thi s Bond in th e mann er provided by the Bond
Ordin ance.
THI S BOND DOES NOT CONSTITUTE A DEBT OR INDEBTEDNESS OF THE CITY
WITHIN TH E MEANING OF ANY CONSTITUT IO NAL OR STATUTORY PROVISION OR
LIMITATION , AND SHALL NO T BE CO NSIDERED OR HELD TO BE A GE NERAL OBLIGAT ION
OF THE CITY .
Reference is hereby made to the Bond Ord in ance for an additional description of th e nature and
extent of th e se curi ty for th e Bonds, th e funds and revenu es pl edged to the payment th ereo f, the ri ght s and
remedi es of th e regi stered owners of th e Bond s, the manner in whic h the Bon<l Ordi nance may be
am ended , ,md the other terms and co nditi ons up on which the Bonds are issued , copie s of whi ch arc on file
for pub li c in spe ctio n at the office of the City Clerk .
[The redemption pro visions estab li shed in the Sa le Certifica te shall appear in thi s place.]
The Bond s wi ll be redeemed on ly in integral multiples of $5 ,000 . In the eve nt a Bond is of a
denomination larger than $5 ,000 , a portion of suc h Bond may be red eemed , but only in the principal
amount of SS ,000 or any integral multiple thereof. Such Bond wi ll be treated fo r the purpo ses of
02. 160909 .2 A-2
rcdcmp1ion as that numbe r of Bond s whi ch re sult s from dividing the pri ncipa l am oun t of such Bond by •
$5,000 . In th e even t a portion of thi s Bo nd is redee med, th i..: Bo nd Rcgis 1rar shall , wit hou t charge to th e
reg istered owner of this Bon d, authenticate and deli ve r a replacement Bond or Bonds fo r th e unredeemed
porti on.
No 1i cc of pri or rcd cmp11 on shall be given by mail ing a copy o f the redempti on noti ce, not less
than 30 da ys orio r to th e dat e fixed for redemptio n, to the registered owne r of th is Bond at the add re ss
shown on the regi stration books mainta in ed by the Bond Registrar , in the manner set fonh ir. the Bond
Ordinan ce. All Bond s ca ll ed fo r redemption wi ll cease to bea r int erest after the s pecified redemp ti on
date, provid ed fund s for th eir redempti on ure on depos it a1 the pl ace ofpaymenl at that time .
The Ci ty and Bond Regi stra r shall not be require d lo is s ue or transfer any Bonds : (a) during a
period beginning at the cl ose of bu si ness on the Record Date and ending at the o peni ng of bus in ess on th e
fir st businr.ss day fo ll owi ng th e ensui ng interest payment date, or (b) d urin g th e period beginning at th e
o pening of bus in ess on a date 45 da ys prio r to th e date of any redemption of Bond s and endin g at the
o penin g of busin es s on the first business day fo ll ow in g the day on which the app li cab le notice o f
redempt ion is mailed . The Bond Regi stra r shall not be required 10 transfer any Bonds selected or ca lled
for redemption, in whole or in pan .
The City, th e Payi ng Agent and th e Bond Rcgis1rar may deem and treat the regi s1ered ow ner of
thi s Bond as th e absolute owner hereof fo r a ll purposes (w hether or not this Bond shall be ove rdue), and
any noti ce to the contrary shall not be binding upon th e City , the Paying Agen t or th e Bond Reg istrar.
This Bond may be exchanged at the principa l office of the Bond Re gistrar fo r a like aggregate
principal amou nt of Bonds of th e same maturity of other au thori ze d denominati ons. Thi s Bond is
trnn sfcmb lc by the regi stered owner her eof in person or by hi s att orne y duly auth orized in writing , at the •
prin cipal office of the Bond Registrar, but only in the manner, su bje ct to the limitati ons, anJ up on
pay men t of the charge s provided in th e Bond Ordinance and upon s urrend er and cancellation of this
Bond. This Bond may be transfe rred upon the regi stration books upon deli very tr, th e Bond Registrar of
this Bond , acco mpani ed by u written in st rumenl or instruments o f tra nsfer in fo nn and with guara nty of
s ignatu re sa ti sfac tory to the Bond Regi strar , duly executed by the ow ner of thi s Bond or hi s atto rn ey in
fac t or legal reprc seniat ive, co ntaining wrilte n in st ruct io ns as 10 the dc 1ail s of the transfe r of the Bond,
along with the socia l securi ty number or federal empl oyer ide 11tifi cati on num be r of such trnn sferec . In the
event of th e transfe r of thi s Bond, the Bond Registrar shull er:G"r the tran sfer o f ,:,wne rship in the
registration books and shall au th entica1e and deli ve r in the nar.-.~ of the tran sferee or transfc rei •s a new
fully regi stered Bond or Bonds of autho rized den ominati o n<.: Jf the same matu ri ty and interest rate for the
aggregate principal am o unt whi ch the reg istered ow ner is entitl ed to receive at the earliest pra cticable
time . The Bond Registrar sha ll charge 1he owner of thi s Bond fo r every s uch transfer or exc hange an
amount s ufficient 10 reimb urse it for it s reasonabl e fees and fo r an y tax or oth er governmental charge
required to be paid with respect to s uch tran s fer or exc hange.
Thi s Bond shall not be va lid or beco me ob liga tory fo r any purpose or be enti tl ed to any secu rit y
or be nefi t und er th e autho ri zing Bond Ord in ance unti l the ce rt ific ate of authemicati on hereo n shall have
been signed by th e Bond Regi strar.
IN TESTIMONY WHER EOF, the Cit y Co uncil of the City of Eng lewood has cau sed thi s Bon d
to be signed by the facsimi le sign ature o f th e Ma yo r, sc aled wi th a facsi mil e of the sea l of 1hc City , and
alle sted by th e facs imile signature of the Clerk th ere of, all as of the Dated Date set fort h at the beginning
of thi s Bond .
02 -160909.2 A-3
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[Fa csi mile Sea l]
Attested :
By (Fac simile Signature]
Loucri shia A. Ellis, City Clerk
CITY OF ENGLEWOOD, COLORADO
By [llisimile Signatun I
Douglas Garrett , Mayo r
CE RTIFICATE OF AUTHENTICATION
This Bond is one of th e Bonds of the issue described in the within mentioned Bond Ordinance .
Duto of Registration
and Authentication :
02-160909.l
THE BANK of CHERRY CREEK, a branch of
Western National Bank
----~ as Bond Registrar
By _______________ _
Authorized Signatory
A-4
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COUNCIL COMMUNICATION
Date Ag e nda Item Subject
December 8 , 2003 5 a i Pro posed Emergen cy Bill For An
Ord inance Authorizi ng The Issuance of
Go lf Cou rse Enterprise Re venue
Refunding Bonds Series 2003
Initiated By Staff Source
Department of Finance and Admin istrat ive Fran k Gryglewicz, Director
Services
COUNCIL GOAL ANO PREVIOUS COUNCIL ACTION
City Council has not fo rm ally taken any action re garding the issuance of these bonds, but the subject
was briefly d iscu ssed with City Coun cil at the study sessio n on Nove mb er 24, 2003 .
RECOMMENDED ACTION
Staff recom mends Council app rove the attached bill for an ordinance authorizing the issuance , not to
exceed $3 ,000 ,000 in Golf Course ente rprise re ve nu e refunding bonds . Th e proceeds from the sa le of
these bond s will be used to refund the City 's Golf Course Revenue Bonds , Series 1994 .
Th is eme rgency ord ina nce not on ly authorizes the issuance of the bonds , but also establishes an
escrow account fo r refund ing the existing bonds. prescribes the form of the bonds (book ent ry),
provides for payment of the bonds from golf course ope ra tion,, and other details and approving
documents in connection with the bonds.
The interest rates on these bonds are expe cted to range from 2.05 -5 .70 pe rcent.
BACKGROUND, ANALYSIS , AND ALTERNATIVES IDENTIFIED
The City of En g lewood issued $4 ,045 ,000 in Gol f Co urse Re ven ue Bonds in 1994 to fund golf cou rse
capital projects (9-ho le expansion , clubhouse improvemenls, indoo r teaching facility ). City staff
be lieves it is in the best interest of the Golf Course Enterpr ise Fund to issue new debt to retire the
existing bonds and extend the debt service schedu le to 2024. This wi ll pro vide fi nancial flex ibility by
lowering debt service duri ng a pe riod of increased uncerta inty and co mpetit io n for golf player
pa rticipatio n.
Thi s bill for an o rdinan ce is being pas sed by emerge ncy ordina nce so the bo nds can be issued in 2003
to take ad vantage of "bank qualifi ed" provis io ns . Second reading of th is bill for ordin a nce will be
December 15 , 2003 and Ihe 30-d ay refere ndu m period wi ll no t be req uired pe r changes to C ity Charter
Section 41 approve d by ci tizens at the elect ion he ld November 6, 2001 .
FINANCIAL IMPACT
This act io n should not have a direct impact on the City's financi al cond ition. as the debt service
requiremerts are solel y the respo nsibility of the Go lf Course Ent erpri se Fund .
LIST OF ATTACHMENTS
Proposed bill for an ordinance