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Home My WebLink About2002 Ordinance No. 039• ORDINANCE NO. 31_ SERIES OF 2002 BY AUTHOP.ITY COUNCIL BILL NO . 39 INTRODUCED BY COUNCIL MEMBER WOLOSYN AN ORDINANCE AUTHORIZING TIIE ISSUANCE BY THE CITY OF ENGLEWOOD OF ITS GENERAL OBLIGATION BONDS , SERIES 2002 , FOR THE PURPOSES APPROVED AT TIIE CITY'S ELECTION ON NOVEMBEP. 6, 2001, AND AUTHORIZING TIIE LEVY OF PROPERTY TAXES TO PAY SUCH BONDS ; PROVIDING THE FORM OF THE BONDS AND OTHER DETAILS IN COIINECTION THEREWITH ; APPROVI1''G DOCUMENTS RELATING TO TIIE BONDS ; AND DECLARING AN EMERGENCY . WHEREAS, the City of Englewood, Colorado is a municipal corporation dul y organized and operating as a home•rulc city under Artic le XX of the Con stitution of the State of Colorado and the Charter of the City (unless otherwise indicated, capitalized tenns used in this preamble shall have the meanings stt forth in Section 1 of this Ordinance); ,·nd WHEREAS , pursuant to Section 104 of the City Charter, the City is authorized to issue general C1blig11tion bonds for any pJblic capital purpose, subject to obtaining voter approval of a ballot question authorizing such bonds ; and WHEREAS , nt an election on November 6, 200 I, the following ballot question (the "Ballot Question ") was approved by a majority of the eligible electors of the City voting on the Ballot Question : SHALL THE CITY OF ENGLEWOOD DEBT BE INCREASED UP TO $12 ,800 ,000 , WITH A MAXIMUM REPAYMENT COST OF UP TO $25 ,'iOO,OOO , AND SHALL CITY TAXES BE INCREASED UP TO $1,300,000 ANNUALLY FOR THE PURPOSE OF ·_EXPANDING AND IMPROVING THE MALLEY SENIOR CENTER. •_EXPANDING AND IMPROVING THE ENGLEWOOD RECREATION CENTER, •_CONSTRUCTING TIIE BELLEVIEW PARK FAMILY AQUATIC CENTER. AND TO THE EXTENT MONEYS ARE AVAILABLE ACQUIRING, EQUIPPING AND CONSTRUCTING RECREATION IMPROVEMENTS WlTHIN THE CITY , BY THE ISSUANCE AND PAYMENT OF GENERAL OBLIGATION BONDS , WHICH SHALL MATURE, BE SUBJECT TO REDEMPTION, W:TH OR WITHOUT PREMIUM , AND BE ISSUED , DATED AND SOLD AT SUCH TIME OR TIMES , AT SuCK PRICES (AT, ABOVE OR BELOW PAR) AND IN SUCH MANNER AND CONTAIN ING SUCH TERMS. NOT INCONSISTENT HEREWITII, AS THE CITY COUNCIL MAY DF.TERMINE ; SHALL AD V ALOREM PROPERTY TAXES BE LEVIED IN ANY YEAR, WITIIOUT LIMITATION AS TO RATE OR AMOUNT OR ANY OTIIER CONDITION , TO PAY TIIE PRINC IPAL OF , PREMIUM, IF ANY , AND INTEREST ON SUCH BONDS; AND SHALL THE EARNINGS ON :HE INVESTMENT OF THE REVENUES FROM SUCH TAXES AND OF THE PROCEEDS OF SUCH BONDS (REGARDLESS OF AMOUNT\ CONSTITUTE A VOTER-APPROVED REVENUE CHANGE? 01-l/9JOJ.0 1 11 b iii WHEREAS , the Council previously iss ued its General Obligat ion Bonds , Series 2001 in the aggregate principal 11111ount of $5 ,810 ,000 and has det:rmincd that it is in the best intere sts of the City and its residents to issue 1he remaining principal amount of general obli gation bonds nt this time for the purpose of providin g the rerr,aining funds to finance the Project : and WHEREAS , on the dale of issuwice of the Serie, 2002 Bonds , the amount of bond ed indebtedness will not exceed 3% of the latest actua l va luation for as sessment of the City ; 11J1d WHEREAS , the Council has been prcsent:d with a proposal from George K. Baum & Company, d Dcnver1 Co lora do, for the purchase of the Bonds upon specified term s and conditions nnd, after co nsideration , the Council hllS determined that the negotiated sale of the Bonds to said company is to the best advantage of the City; and WHEREAS, Section 41 of the City Chaner pennits the use of an emergency ordinance for ordinances incurring indebtedness where the City has received prior voter approva l and the Council h~s de1ennined that the declaration of an emergency for this Ordinance is necessary , within the meaning of Section i'.J, in order to pennit the City to obtain the lowest interest rotes possible ; and WHEREAS , the City Council desires to authorize the issuance and sale of the Bonds and, as provided in Title 11, Article 57, P11r1 2, C.R.S., delegate the authoriry to the Director of Fin ance and Administrative Services to delennine certain provisions of the Bonds to be set fonh in the Sale Cenificate, in accordance with th e provisions d this Ordinance ; therefore BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD , COLORADO : Secllon 1. Definition s. The following tenn s shall hove the following meani ngs as used in this • Ordinance: "Act" means Pon 2 of Article 57 of Title 11, Colorado Revised Stntutes , as amended , or any suc\!essors statutes thereto . "Ballot Ques tion" mean s 1he ballot question approved by Ciry voters quo1ed and d,.fined as such in the preambles hereto . "Bank" means The Oo.nk of Cherry Creek , a branch of Western National Bank in Denver, Colorado, or its succ essor, a national banking association duly organized and exis ting under the laws of the United States d America, being a mem be r of the Federal Deposit Insurance Corporation , and having full and complete trust powers . •• Bond Accounf' means the account established by the provisions hereof to account for the moneys fer which a sepnrate tax levy is made to satisfy the obligations of the Bonds. The Bond Account shall be 11 subsidiary account of the appropriate fund or account of th e City and separate ly accounted for by the City in accordance with the provisions hereof. "Bond Counsef' means (n) as of the date of iss uance of 1he Bonds , Kutak Rock LLP , and (b) as of wiy other date. Kutak Rock LLP or such other attorneys se lected by the City with nationally recognized expertise in the issuance of municipal bonds . "Bond Insurance PCJHcy'' means the municipal bond insurance policy issued by the Bond Insurer insuring the pnyment when due of the pri ncipal of and intercs1 on the Bonds as provided therein . "Bond Insurer'' means MBIA Insurance Corporation . or any successor thereto . "Rond Obligation'" means , as of any date, the principal amount of the Bonds Outstanding as of such date . iA., For purposes of the Sections hereof titled "Remedies for Events of Default" and "Amendm ent of Ordinance," Bond WI Obligation shall be deemed to include the amount payable on the Rcgis:ercd Coupons, as set forth in the Section 02-l l 9J 9J.0t 2 • hereof titled "Bond and Regi stered Coupon Details ," which has not been paid as oFthe date on which such Sections are being applied . "Bond Purchase Agreement' means the Bond Purchase .\greement, pursuant to which the City has ngrecd to se ll and the Underwriter has agreed to purchase the Bonds at ti.le prices and on the tcnns set fonh therein . "Bonds" and "Series 2002 Bonds" means the Bond s authorized by the Section hereof titled "Authorization ond Purpose of Bonds ." "Business Day' means any day other than (a) a Saturday or Sunday or (b) a day on which ban~ing instit'l;tions in the State are authorized or obligated by law or executive orc!cr to ~~ closed for business . "Charter" meMS the home rule Charter of the City . "Ciry'' means the City of Englewood, Colorado, and any su ccessor ·•~ereto. "Code" means the Internal Revenue Code of 1986, as IL'M•rJr<l 'lCh reference to a section of the Code herein shall be deemed to include the United States Treasury ·::g ut •,,,m, proposed or in effect thereunder and applicable tc the Bonds or the use of proceeds thereof, unless the ... n1text t.·lear ly requires otherwise . "Commitment" means that cenain offer to issue the Bond Insurance Policy issued by the Bond In su rer. "Councif' meM s the City Council of the City. "County'' mea ns Arapahoe Count/, Colorado . .. Dated Date" means the original dated date for the Bonds as established in the Sale ~c:;t1 ~1.:ntr'. '"Defeasance Securities" mean s bill s, cenificates of indebtedness. notes , bonds or similar securities which arc direct. non•callable obligations of the United States of America or which are fully and unconditionally guaranteed as to the timely payment of ,mncipal Md interest by the United States of America, to the extent such investments arc Pcnnitted Investments . "DTC' means Th e Deposi tory Trust Company, New York. New York , and its succe~sors in interest and assigns . "OTC Blanket Leuer of Representations"' means the letter of represen tations from the City to DTC to induce OTC to act as sec uritie s depository for the Bonds . "Event o[Defau/f' meMS any of the events specified in the Section hereof titled ''E nts of Default ." .. Interest Payment Date" means each June I and December I, commencing on the date set forth in the Sale Ctrtificate . .. Official Statement" me11J1 s the final Official Statement rel ating to the Bonds. "Outstanding'' means . as of11ny date, all Bonds iss ued and delivered by the City, except the follow i:::g: (a) any Bond cance lled by the City or the Paying Agent , or otherwise on the City 's behalf, at or before such d te : (b) any Bond held by or on behalf of the City ; (c) any Bond for the pnyment or the redemption of which moneys or Defeasancc Securities sufficient to meet all of the payment requirements of the principal of, premium . if any , and interest on such Bond to the date of maturity or prior redemption thereof, sha ll have theretofore been deposited in trust fer such purpose in accordance with the Sectio:1 hereof tit led "Dcfeasance "; Md 0J./19395,0/ (d) an y lost , appare ntly destroyed, or wro ngfully 1nke n Bond in lieu of or in su bstitution lir whic h 1111other bol"ld or other securny shall have been exec ut ed nnd del ivered . "0¥.mer" means th e Perso n or Persons in whose name or names a Bond is regis:t!rcd on the l'egistrati on books main ta ined by th e Pnying Agent pu rsuz.nt hereto . "Paying Agent" means the Bank and its successors in interest or assigns approved by th e City. "Paying Agem ·"::--..,.eement'' means an agreement bctwetn th e City and the Paying Agen t concerning the duties and obligations of the }'ayi ng Age nt with respect to the Bonds . "Permiued l nvesunenfs'' means any in vestme nt in whi ch funds of the C ~.V may be inves ted under the Charter Md th e laws of th e Stale at the time of such investtn'!nt , subjec t to any lim im :W'l which may be set. forth in the Commitment. "Person" mean s a corporation , firm , other body corporate, partnershir, d.Cisociatio n N individua l ilnd also includes an executor, administrator, trustee, recei ver or other representative appointc J ac.:ord .11g to law . "Prelfminary Official S1a1ement" meilns th e Preliminary Official Statement )i "'tf:J rc<l in con necti on with the sale ilnd issuilncr of th e Bonds . "Project'' meilns any purpose for which proceeds of the Bonds may be expended under the Act Md the Ballot Que stion . incl ud ing, but not limit ed to , the paymen t of costs of issuance of th e Bonds . "Projec1 Account' mcilns the account esta blished by lhc prov is ions hcn:of for the purpose of paying the costs properl y attributa ble to the Project. The Project Account shall be II subsidiary account of th e appropriate fund or account of the City, and Cieparatcly accounted for by the City in 11ccordance wi th the pro,·isions hereof. ''Record Dare" means , with respect to each Interest Pay ment Date , the fiftet:ith day of the month immed iate ly 11•recedin~ the.. month (w heth er or not such day is a Bus iness Day) in which suc h Interest Pay ment Date occurs. "Regislered Coupons" means the se parate, detached registered coupon evidencing supplementa l interest on the Bonds designated llS "B,'' llS set fonh in the Section hereof titl ed .. Bond and Registered Coupon s Details ." Until the last '·B" interest payment date for the sup plemen tn l interest (llS set forth in the subsecti on h~f titled "Bond and Registered Coupon Details-Maturity Dates, Pri n,.ipal Amounts and lnterest Rates''), the defined tct;n Bonds shall include th e Regi ste red Co upon~ and references to interest on the Bond s !.hall include all amounts payable on th e Regi stered Co upon s, except th at: (a) the term "Bonds" does not include U11! Registered Coupons in the Sections he reof titled "Bond and Registered Coupon Detail s," "form of Bonds and Registered Coupon s," and "Transfer and Exchange ofBonds and Re gistered Coupons" and "Rede mpt ion ofBonds Prio r to Marurity"; and (b) for purposes of the Secti on hereof titl ed "fe de ral In come Tax Covenants," onl y a portion C'lf the amounts payable on the Regis tered Coupons shall be treated as interest, as described in the s~tion of the Official Statement describing th e federal incom e tax treatment of interest on the Bond.Ii . • 10rdinance" means this Ordinance, inc luding any amendments or sJ ppl ements hereto . ''Sale Certificate" means th e certificate executed by th e Director of Finance and Administrati ve Services under th e authority delegated purs esnt to thi s Ordinance, inclsding bur not limited lo the Sections hereof titled "Bond and Registered Coupon De tai ls," "Redempti on of Bonds Prior to Mannily" and "Approvai of Relate d Documents'' wh ich set fonh, among oth er things , t.,: prices at whi ch th e Bond " will be sol d, th e Dated Date, interest rates and annual maturi ng principal for the Bonds, and th e payment dates for th e Regis tered Co upons . as well llS the dates on which the Bonds may be redeemed and the redemption prices th erefore . "Stare" means the State of Co loP.do. 01·119J9l01 4 • • • 0 Tax Leifer of lnstr11c1ions" mean s th e Tax Letter of In stru ction s, d111ed the dnte on which the Bond s are originally is sued nnd deli ve red to th e City by Bond Coun sel , as such in struction s may be superseded or amended in accordnnce with their tenn s. "Ur,den vriter'' mean s George K. Baum & Co mpan y, Denver. Co lorado. Section 2. Aulhoriz.nUon and Purpose of Bonds. Pursuan1 10 and in nccordance with the Act , the Chnrier and th e Ba ll ot Question , the City hereby authorize s, and directs that there shall be iss ued. the "C ity cf Englewood , Colorad o. General Obligation Bond s, Series 2002," in the aggregate original principal amount not to exceed $6 ,990,000 for 1he purpo se of prov iding fund s for lhe Project Section 3. Bond and Registered Coupon Details. (a) Rtgisltrt!d Form, Denominations, Dated Date and Numbering. The Bonds and the Regisiered Coupons shall be issued in fully regisiered fonn , shall be da1ed as of 1he Da1ed Dale , and shall be registered in th e names of the Persons identified in the registration books maintained by the Paying Agent pursuant hereto . The Bonds shall be issued in denomination s of $5 ,000 in principal amo unt or any integral multiple there<Jf. The Reg istered Coupons shall be issued in denominations of $5 ,000 in the amount of"B" interest due on the "B" interest payment date set forth in subsection (b) of this Section . The Bonds shall be con secuti ve ly numbered , beginning with the number one. preceded by the lener "R." The Registered Coupons shall be consecutively numbered , beginnin g with the number one , preceded by the letter "RC." (b) Maturity Datts, Principal Amounts and /nurest Rates. The Bonds shall mature on December I of the years and in the principal amounts , and shall bear interest designated "A " and supplemental interest designate "B'' at the rates per annum (calcu laled based on a 360 •day year of twelve 30~ay months) set forth in the Sale Cenificate. The supplemental intere st designated 0 8 " shall be evidenced by Registered Coupons payable in specific dollar amounts . The Council hereby delegates to the Director of Finance and Administrati\'e Services th e authority to detennine the Dated Date, the price at which th e Bonds will be sold, the aggre gate amount of principal of Bonds issued, the principal amount d Bonds maturin g in an y pan icu lar year w1d th e rate of in terest de signated "A" and "B" on th e Bonds , including the amount of "B" interest due on any "8" intere st payment date . {c) Accrual and Dat.:s of Payment of Interest. "A'' interest on the Bonds shall accrue at the rates set forth in th e Sal e Cenificatc from the later of the Dated Date or the latest Interest Payment Dal e (or in the cas e of defau lt ed interest, the latest date) to wh ich int erest has been paid in full and shall be payable on each Interest Payment Date. "B" interest represented by the Regi stered Coupons shall accrue at the rates set fonh in the Sale Certificate, commencing on the Dated Da te and ending on the uB " interest payment date specified in the Sale Certificate for the weighted average maturity principal amount of Bonds scheduled to be outstand in g during such accrual period, and be pai d as prov ided in subsection (b) of this Sectio n. {d) Manner and Form of Payment. Principal of each Bond and th e amount payabl P. on each Registered Coupon shall be payab le to the Owner thereof upon presentation and surrender of such Bond or Registered Coupon at the principal office of the Paying Agent in the city identified in th ~ definit ion cf Paying Agent in the Section hereof titled "Definitions" or at such other office of the Payin g Agent designated by th e Paying Agent for such purpose . "A" interest on each Bond shall be payable by ch eck or draft of the Pay ing Agent mailed on each Interest Payment Date to th e Owner th ereof as of the close d business on the corresponding Record Date ; provided that "A" interest payable to an y Owner may be paid by any other means agreed to by such Owner and the Payin g Agent that doe s not require the City to make moneys available to the Paying Agent ear lier than otherwise required hereunder or increase the costs borne by the City hereunder , All payments of the principal of and interest on the Bonds shall be made in lawful money of the United States of America. (e) Book-Entry Registration. Notw ithstanding any other pro vision hereof. the Bonds and the Registered Coupons shall be delivered only in book•entry fonn regi stered in the name of Ced e & Co ., as nominee ofDTC, acting as securities depository of the Bonds and the Registered Coupons and principal d and "A " interest on the Bonds and th e "8 " intere st pa yable on th e Regi stered Coupons shall be paid by 01-11 91.'U .0I wi1c transfer to OTC; provided, however, if at any time the Paying Agent determines , and no1 ifies the City ofits determination. that OTC is no longe r 11,ble to act as, or is no longer sn1isfactorily performing its • dut ies as , securities depository for the Bonds imd the Registered Coupons, the Paying Agent may , at its discretion . either (i) designate a substirute securities depository for OTC and reregistc r the Bonds and the Rc gistcud Coupons as directed by such substitute sec urities depository or \ii) terminate the book•entry registration system and rcn:gister the Bonds and the Registered Coupons in the names of the bendicial owners thereof provided to it by OTC . Neither the City nor the Payi ng Agent shall have any liabi11ty to OTC , Cede & Co., any sub stitute sec urities depo sitory , any Person in whose nrune the Bonds and the Registered Coupons nrc reregistered at the direction of any substitute securities depository , any beneficial owner of the Bond s und the Registered Coupollli or 1111y other Person for (A} any detennination ma de by the :>aying Agent pursuMt to the proviso at the end of 1he immediately preceding sentence or (B} My action trute n to implement su::h determination Md the procedures related thereto that is taken pursuMt to any d~ction of or in reliance on any information provided by DTC , Cede & Co., any substitute sec urities depository or any Person in whose name the Bonds and the Regist ered Coupons are reregistered . Section 4. Redemption of Bonds Prior to Maturity. (a) Optional R,d,mptlon. The Bonds shall be subject to redemption at the option of the City , in whole or in part, and ifin part in such order ofmaturit!es ,as the City shali dete ,mine and by lot within a maturity on such dates as set forth in the Sale Cenificate ."' the Council here by dele gates t'o the Director ri Financ.: and Administrative Services the authority to determine the dates on which the Bonds shall be subject to optional redemption and the redemption price or prices at which such redemption may be made . (b) Afand,:ary Sinking Fund Red,mptlon . All or any principal amount of the Bonds may be subject to mand :-.'°ry sinking fund redemption by lot on December I of the years and in the principal am ounts speci ,1ed in lhe Sale Certificate, at a redemption price equal to the princi pal amount thereof (with no P.demptir 11 premium}, plus accrued interest to the redemption date . The Council hereby delegates to the Director of Finance and Administrative Services the authority to detennine the principal amounts nnd dales on which the Bonds shall be subject to mandatory sinking fund redemption . (c} Redemption Procedures. Notice of nn y redemption of Bonds shall be given by the Paying Agent in the name of the City by sending a copy of such notice by first-class , postage prepaid mail, not more than 60 days nor less than 30 days prior to the redemption dale, to the Owner of each Bond being redeemed . Such notice shall specify the number or numbers of the Bonds so to be redeemed (if redemption shall be in pan} and the redemption date . If any Bond shall have been duly called for redempti on and if, on or before the redemption date, there shall have been deposited with .he Paying Agent in accordance with thi s Ordinance funds sufficient to pay the redemption price of such Bond on the redemption date, then such Bond shall become due and payable at such redemption date, and from and after such dat e interest will cease to accrue thereon . Failure to deliver any rcde:nption notice or any defect in any red em ption not k e shall not affect the validity of the proceeding for the redemption of Bonds with respect to which such failure or defect did not occur. Any Bond redeemed prior 10 it s maturity by prior redemption or otherwise shall not be reissued and shall be cancelled . Section 5. Security for the Bonds . (a) G,n,ra/ Obligations. The Bonds shall be general obligations of th e City and the full fa ith and credit of the City are pledged for the punctual payment of the .-rincipal of and interest on the Bonds. The Bonds shall not cons titule a debt or indebtedness of the County. the State or any political sut-divi sio n of the Slate other than the City . (b) ~' of Ad Valortm Ta."CtS . f or the purpose of paying the principal of and intere st on the Bonds when due, respectively , the Co uncil shall annually detennine and certify to the Board of County Commissioners of the Cou nty. a rate of levy for general ad valorem taxes , without limitation as to rate or amount , on all of the taxable propeny in the City, suffi cient to pa y th"! princi ;,,al of and interest on the Bonds when due . respectively , whether at maturity 01 upon earlier redemption . 01-1 /9J9J OJ 6 • • • • (c) Application of Procuds of Ad ValtJrem Taxe s. The ge neral ad valorem ta:<e s lev ied pursu nnl to subsecti on (b ) of thi s Section . when co ll cc tr.d, shall be deposited in 1he Bond Ar.count and shall be applied so lel y to the payment of !he principal of and inu res 1 on the Bonds and for no o.1 1er purpo se until th~ Bonds , includ ing principal a":j interesr. are fu ll y paid , satis fied 11t1d di scharged. (d) Approprlatlu11 011d Bu1gttlng of ocer.ts of Ad Valo rem Taxes . Mone ys received from the general ad valorem taxes levied pu;suant to subsr.cr km (b) of thi s Section in an nmount sufficient to pay the principal ofond intere st on the Bonas when ch1e, respe ctively , are hereby appropriated for th at purpose, and all amounts required to pay th e pri nci~11 I of ·1:1 d int.!rest on the Bonds due , respectively, in each year shall be included in the annual budger ano ZJ•-p r,:i pr b tion ordinance to be adopted and pas sed by me Cou ncil for such year. (c) Use or Advance ofOtlt er Legally Available Moneys . Noth in g herein sha ll be interpreted to proh ib it or limit the abili ty of the City to use legall y avai lable mone ys other th an the proceeds of the general ad valore m propeny taxe s levied pursuant to sub sec tion (b) of this Section to pay all or an y portion ofthe principal ofor interest on the Bonds. If and 10 the exten \ ,ur,h other legally available moneys are used to pay the principal of or interest on th e Bonds, th e City ma., but shall nut be required to, (i) reduce th e amo unt of taxes levi ed for such purpose pursuant 10 sub section (o) of thi s Section or (ii) use proceeds c:f tax es levied pursuant 10 subsection (b) of lhi s Section to reimburse the fund or account from which such other legally available mone ys arc withdrawn for the amount withdrawn from such fund or account to pay the principal of or in teresl on rh e Bonds. If the City se lects alternat ive (i i) in the immedia tely preceding se nten ce. the taxes levied pursuant to sabsecti O:" {h) of thi s Secti on shall includ e amounts sufficient to fund the reimbursement. (f) Ce rtljlca tion to Coun:-:· t:u;w .l:Js,n n-:rs. It is hereby declared that , ir the City does not otherwi se detennine and cenify to the Boar".! u i Co unty Com mi ss ioners of th e Co 1mty a rate of levy fer general ad valorem property taxes as required by subsection (b) of this Sec tion . th e foregoi ng provisions ci thi s Section shall constitute a ccnificate from th e Counc il to th e Board of County Co mmi ssio ners of th e Co un ry showin g the aggregate amount of ad valo rem taxes to be lr vied by the Board of Co un ty Co mmi ss ioners tJf the Count y from lime to time , 115 required by law , fo r th e purpose of payi ng the pri ncipa l of and intere st on the Bonds whe n c!o e. (g) Dl!posit of Moneys to Pay Bonds with, a11d Paymetll of Bonds by Paying Agem. No late r than three Bwiness Da ys immediately preceding each date on which a payment of prin cipal of or interest on the Bonds is due , the City , from moneys in the Bond Account or other le gally available mone ys, shall depo si t moneys wit h the Paying Agent in an amount suffici ent to pay the principal of and interest on the Bonds due on such date . Tht Pny ing Agent shall use the mone ys so deposited with it to pay the principal of and intere st on th e Bonds when due . Section 6. Form or Bonds and Registered Coupons. The Bonds shall be in sub stantiall y th e form set fonh in Appendix A hereto and the Registered Coupon s sha ll be in substantiall y the fonn se t fonh in Appendix B hereto with such changes thereto , not incon siste nt herewith, as may be necessary or desirable and approved by th e officials of the Cicy execu tin g the same (w hose manu al or facsimile signatures th ereon shall co nstitute conc lusive evidence of such npprov:il). All covenants, stat eme nts, representatio ns and agreements contained in the Bonds and the Re gistered Coupons arc hereby approved and adopted as the cove nants , statement s. represe ntations and agreements of the City . Althou gh anached as appendic es for the con 'lcnience of the reader, Appendix A and Appendix B are 1n integral po.rt of thi s Ordinance and are in corporated herei n as if se t forth in full in the body of thi s Ordinance. Section 7. Execution or Bonds. The Bo nd s sh all be executed in the name and on behalf of the City with the manual or facsim ile signature of th e Mayor of the Council. shall bear a manual or fac simi le of the seal ~f the City and shall be aneste d by the manual or facsimile signature of the City Clerk of the Co uncil, all of whom nre hereby authorized n.nd directed to prepa re and execute th e Bonds in acco rd ance with the requirements hereof. Snou ld any officer whose manual or fac simile sign ature appears on th e Bonds cease to be such officer before delivery of any Bond , such manual or facsimile sigmuure shall ne ve nhel ess be va lirt and sufficient for all purpo ses. When the 01-IJ9J9 j 01 Bonds have been duly executed , the office rs of the City are auth ori zed 10, and shall , deliver the Bonds to che Paying Agent for authentication . No Bond shall be sec ured by or titl ed to the benefit of thi s Ordin ance , or shall be valid or • obligatory for any purpose, unless th e certificate of au thent ication of the Paying Agent has been mnnuall y executed by an authorized sign atory of the Paying Agent. Th e cxecu1ed certificate of authen ti cat ion of the Payi ng Agent upon any Bond shall be ton clu sive evidence, and th e on ly com petc,n evidence, that such Bond has been properly authenticated and de11vered here und er , s~clion 8. Temporary Bonds. Until Bond s in definitive fonn are ready for de livery , th e City may execute, and upon the request of the City, the Paying Agent shall authenticate and deliver, subject 10 th e provisi ons , limitalions and conditions set fonh herein , one or more Bonds in lemporruy form, whether printed , cypewriuen. lithographed or otherwise produced , substantiall y in th e fom,s of th e definitive Bonds, with appropriate omi ss ion s, variations and insertions, and in authorized denominations . Until exc han ged for Bond s in definit i·,c form , suc h Bonds in temporary form shall be entitl ed to the benefits an d sec urity of thi s Ordinance. Upon th.: nn:.'f'Plation and surrender of a.ny Bond in temporary form. the .: :~ shall , withou 1 unreasonable delay, prepare , ex et:uir wad de liver to the Paying Agent and the Pay ing Agent shall autiienticate and de liver, in exc han ge therefor, :; Boa ~ .r Bonds of th e same series in definitive fonn . Such exchange shall be mad e by the Payi ng Agent without rn akitJg an y chnrge therefor to the re giste red owner of such Bond in temporary form . Seclion 9. Registrntion of Bonds in Registration Books Maintained by Paying Ag1!n i. l"he Paying Agent shall maintain re gistratio n books in which the ownership . transfer and exc han ge of Bond s-l!,.1 1 ~ recorded . The person in whose name any Bond shall be regis1ered on such re gistratio n book shall be dcrm:. . .l lo be th!' absolute owner th ereof for all purposes , whether or not payment on any Bond shall be overdue , and nei 1he1 1h e Cit y nor the Payin g Agent shall be affected by any notice or other information to 1he ""'1,trary . Section JO. Transfer and Exchange of Bonds and Registered Coupon -.. (a) Transfer and Exchange of Bonds . The Bond s may ".: iri',sferrcd or exc~dnged at the prin ci pal office of the Paying Agent m the city identified in th e defini :,,.11! 01 Paym g Agent in the Section hereof titled "Definitions" or at such other office of the Paying Agent designated by th e Paying Agent fa • such purpose for a like aggregate principal amount of Bonds of other authorized denominations of the same maturity and interes1 rate. up on payment by th e tnulSferee of a reasonab le tnulSfer fee estab lished by the Payin g Agent , tugether with any tax or governmental charge required to be pai d with re spect to such transfer or exc hange and any cost of prindn g bonds in connectio n therewith . Upon surrender for transfer ri any Bond , duly endorsed for transfer or accompanied by an assignmen t duly exec ut ed by th e Owner or his or her attorney duly authorized in writing, th e City shall exec ute and th e Payin g Agent shall auth enticate and deli ver in the name of the transferee a new Bond. Notwithstanding any other provis ion he reof, the Payi ng Agent shall not be required to transfer any Bond (i) which is sc hedul ed to be redeem ed in whole or in pan between the Business Day imm ed iately precedi ng the mailin g of the notic e of re ion and the redemption date or (ii) between the Record Date for an y I merest Payment Date and such 'l t Payment Date . (b) Transfer and Exchangt of ReglJtered Coupons. The Registered Coupons may be transfcrreJ or exc hnnged at the principal office of the Paying Agent in th e city identified in the definition ri Paying Ai ent in the Section hen.-of tit!ed "Definition s" or at such other office of the Paying Agent designate d t,y the Paying Agent for such purpose for a like aggregate amount of"B'' intere st due on the "8" interc~~t payment date Regi stered Coupon s of oth er nuthorized denomination s of 1he same payment date . upon payment by the transferee of a reasonable transfer fee established by th e Pay ing Agent, toge ther with any ta.'< or gove rnmental charge required to be pa id with re spect to such transfer or exchange and any cost of printing bonds in connection therewith. Upon surre nde r for transfer of any Registered Co up on, dul y endorsed for transfer or accompanied by an ass ignment dul y executed by th e Owner or hi s or her attorney dul y authorized in writing , the City sha ll execu1e and th e Payin g Agent shall auth enti cate and deliver in the n.une of the tran sfe ree a new Re giste red Co upon . Section 11. Replacement of Lost, Destroyed or Sto len Bonds. If an y Bond sha ll become lo st. ap parently destroyed , sto len or wro ngfu lly taken , ii may be replaced in the fonn and tenor of the lost. de stroyed , stolen or taken Bond and the Ci ty shall exec ute and the Payin g Agent shall authenticate and deliver a tc plac emcnt Bond upon th e Owner furni shin g. to the satisfaction of the Payin g Agent: (a) proof of ownership (w hich shall be • show" by the re gis trati on books of the Pa yi ng Agent). (b) proof of loss. destruction or theft . (c) an indemnity to the 01-J/fJJ9J.O/ • City ond the Paying Agent with rospect 10 the Bond lo st, destroyed or taken , and (d) payment of the cost d preparing and execulin g the new Bond . Section 12 . Creallon of Accounlsi Initial Credits to Accounts. (a) Cr~atlon of Account.s. There is hereby established the Bond Account and the Project Account The foregoing accounts sha ll be maintained by the Chy in accordance with the provisions of 1his Ordinance. (b) Initial Crtdits to Accounts. Upo n payment lo the City of the purchase price of th e Bonds in accordnnce with l);c Bond Purchase Agreement , the Bonds shall be deliv ered to , or as directed by, the Underwriter ond the proceeds received by the City from the sale of the Bonds shall be applied as a supp lemental ap ,ropriation by the City , as follows: (i) to the Bond Accoun t, th e accrued interest on the Bonds from the dated date thereof to the da te of issuance, if any ; (ii) to the Project Account, th e remaining proceeds of th e Bonds . Section IJ. lnvestmcn tJ. Proceeds of th e Bonds delivered to the City pursuant to the Section hereof titled "Crcatior. of Accounts; Initial Credits to Accounts," moneys on deposit in the Bond Account and any moneys held by the Paying Agent with respet..1 to the Bonds sha ll be invested in Permitted Investments , provided that the investment of such moneys shall be subject to any applicable restrictions set fonh in the To.x Lener of Instructions and in the ''Tax Compliance Certificate" or similar certificate delivered by the City in connection with the issuance of the Bonds that describes the City 's expectations regarding the use and investment of proceeds of the Bonds and other moneys and the use of the Project. Section 14. Various Findings, Determinations, Dularatlons and Coven nnts. The Council , having been fl lly informed of and having considered all th e prrtincnt facts and circumstances, hereby finds , determines , declares and covenants with the Owners of the R~11ds that: (a) voter approva l oi th e Ballot Question was obtained in a.:co<dwcc wi th all applicable provisions of law ; (b) it is in the best interest of the City and its residents that the Bonds be autho rized , sc Id , issued and delivered at the time , in the manner and for the purposes provided in t:~is Ordinance; (c) the issuance of the Bonds will not cause the City to exceed its debt limit under applicable State law ; (d) the DTC Blanket Letter of Representations to be entered into ,,ith DTC will govern the book-enny registration system for the Bonds; and (c) the issuance of the Bonds and all procedures undertaken incident thereto are in full compliance and conformity with all applicab le requirements, provi sions and limitation s prcsc rited by the Charter, the Constitution and luws of the State, including the Act and the Ballot Question , and all condition s and limitations of the Chancr, the Act , the Ballot Question and other applicable law relating to the issuance d the Bonds have been satisfied . Section 15. Federal Income Tax Covenants. For purposes of ensuring that :he in tere st on the Bonds is and remai ns excluded from gross income for federa l incom e tax purposes, the City hereby covenants that : (a) Prohibited Actions. The City will not use or permit the use of any proceeds of the Bonds or _ny other funds of the City from whatever source derived, directly or indirectl y, to ncquirc any securities or obligatio ns and shall not take or permit to be taken any other aclion or actions, which would cause any Bond to be on "arbitrage bond" within the meaning of Section 148 of the Code, or would otherwise cause the interest on any Bond to be includib le in gros.~ income for federal income tax purposes . 01-1 l9J9J.OI 9 (b) Afflrmatfr• Actions. The City will at all times do and perfonn all acts pennined by law that arc necessary in order to assure that interes t paid by the City on the Bonds sha ll not be incl udibl c in gross • income for federal income tnx purposes under the Code or any 01hcr valid provision of law . In particular, but wi thout limitation , the City repre sents , wnrrants and co venants to comply with the following rules unle ss it receives o.n opini on of Bond Coun sel stating that suc h compliance is not necessary: (i) gross proceeds of th e Bonds nnd th e Project will not be used in a manner that will cause the Bonds to be considered "private activity bonds " within the meaning of the Code; (i i) the Bonds are not and will not become directly or indirectly' ,ederally gullnlOtccd"; 1111d (iii) the City will timel y file 1n Internal Revenue Service Form 8038-G with respect to the Bonds, wh ic h sha ll contain the information required to be filed pursuant to Section 149(e) of the Code . (c) Tax lttttr of lnstructlonJ. The City will comp ly with the Tax Letter of lnstmc. ,ms delivered to it on the date of issuance of the Bonds , including but not limit ed by the provisions of th e Tax Letter of Instructions regarding the application Md investment of Bond proceeds , the use of the r ,~;".,I , th: calcu lations, the deposits, the disbursements , th e investments and th G rr ~rn :i on of recordJ d,.:r,. ,i"-.x.11 111 t(i•, Tax Letter of Instructions ; provided that, in the eve nt the Tax Letter of lns lructiGn s nril st.i:,~m-.t,i'"Cf ,. amended by new Tax Letter of In struction s drafted by, and accompanied by an opinion of, Bon e. t,U"• :e 1 stating that the use of the new Tax Letter of Instructions will not cause the interest on the Bonds to 'i.'l.'l....i •~ includible in gross income for federal income tax purposes , the City will thereafter comply with the new Tax Letter of Instructions . (d) Designation of Bonds as Qualified Tax-Exempt Obligations. The City hereby des ign ates the Bonds as qualified tax-exempt obligations within the meaning of Section 265(bXJ) of the Code . The City covenants that the aggregate mce amount of all tax-ex~mpt obligations issued by the City, together with governmental entities which derive their issuing authority from the City or are subject to substantial contro l by the City, shall not be more than SI0,000,000 during calendar year 2002 . The City recognizes that such tax-exempt obligations include notes , leases, loans and warrants, 115 well ru; bonds . The City further recognizes that any bank , thrift institution or other financial institution that owns the Bonds will rely on the City 's designation of the Bonds as qualified tax-exempt obligations for the purpose of avoiding the loss of 100% of any otherwi se available interest deduction attributable to such institution 's tax-exempt holdings. Section 16. Defea,ancc. Any Bond shall not be deemed to be Outstanding hereunder if it shall have been paid and cancell ed or ifDefeasancc Securities sha ll have been depo5ited in trust for the payment thereof (whether upon or prior to the maturity of such Bond , but if suc h Bond is to be paid prior to maturity , the City shall have given the Paying Agent irrevocable directions to give notice of redemption as required by this Ordinance, or such notice shall have been given in accordance with this Ordinance). ln co mputing the amount of the deposit described above, the City rnay include the maturing principal of and interest to be earned on the Def~ce Sec uriti es. If less than al l the Bonds arc to be defeased pursuant to th is Section , the City , in its sole discretio n, may select which a the Bonds shall be def eased . Notw ithstand ing anything herein to the contrary, in the event that the principal and/or interest due on the Bonds shall be paid by the Bond Insurer pursuant to the Bond lnsUr.111ce Policy , the Bonds shall n,main Outstanding for all purposes, not be defeased or otherwise satisfied and not be considered paid by the City, and all covenants . agreements and other obligations of the City to the Owners sha ll continue to exist and shall run to the benefit of the Bond In surer, and the Bond Insurer shall be subrogated to the rights of such Owners . S«tlon 17, Events of Default Each of the following events co nsti tutes an Event of Defau lt : (n) Nonpa)'"'1tnt of Principal or i'nurest. Failure to make any payment of principal of or inte rest on the Bond s when due . (b) Rrtac:h or Nonptrformanc:t of Duties. Breach by the City of any material covenant set forth here in or failure by the City to perform any material ctuty imposed on it hereund er and ('"'ltinuation of such breach or failure for a period of60 days after receipt by the City Attorn ey of written n..,,1, 1 t:iercof from the Paying Agent or from the Owners of at least 10% of the aggregate amount of the Bond ( ,,; ation. provided • that such 60 day period sha ll be extended so long as the Ci ty has com mencr.d and co . .~s a good faith effon to remedy such breach or failure. 01-l/9J9J.0/ 10 • • • (c) Bankruptcy or Rece!vership. An order of decree by a cnu 1t of roml)l.!tcnt jurisdiction declaring the Ci ty bankrupt under federal l1Mkruptcy law or nppointin g a rec ... ' -.. of 111 or any matcrinl ponion of the City 's nssct s •.>r revenue s is c1.1rred with the consent or acquiesccn . ·• ~i tl'\e Ci1:y or is entered withou1 the consent or acquiesc ence of the City but is not vacated. discharged o· Sl .l} ,:d wit hin 30 days after it is en tered . Section 18. Rcmcdl~ for Events or Default. (a) Remedies. Upon the occurm,ce and contin uan ce of any Event of Default, the Owners of not le ss than 25 % of the aggregate amount of the Bond Obligat io n, includin g, without limitation. a tru stee or trustees therefo r may proceed again st the City to protect and to enforce the righ ts cf 1 bc an y Owners under th is Ordinan ce by mandamu s, injunction or by other suit , ac ti on or special prorec .ti:if,S in equity or at law , in any co urt of competent j urisJict ion: (i) for the paym en t of in terest on an y insta!J ... , ot of principal of any Bon d that was not paid when due at the interest rate borne by such Bond ; (ii) for th e sr ~cific pcrfonnance cf any covenant contained herein ; (iii) to enjoi n any act that may be unlawful or in vinl ction of any ri ght cf any Owner of any Bond ; (iv) for any other J. Jper legal or equi tab le remedy ; or (v) any com binat ion of such remedies or as otherw ise may be au thori ze d by applic abl e law ; provided, how ever, t•,.·~ acceleration of an y amount not yet due on the Bonds a, Jrdin g to their term s shall not be an ava il ab\'l remt:dy . All such proceedin gs at law or in equity shall t instinncd. had and maintained fo r th e equal b::n::'11 of ai: Owners ri Bonds th en Outst and ing. (b) Failu re to Pursue Remedies No t a Releasej Rl9hts Cum ulative. The fai lure of any Owner of any Outstanding Bond to proceed in accordance with subsec tion (a) of this Section sha ll not relieve the City of any liability for failure to perform or carry out its duties under th is Ordinance . Each right or privilege of any such Own er (or trustee therefor) is in addition and is cumulative to any other ri ght or priv ilege, and the exe rcise of any right or privil ege by or on behaJf of any Owner shall not be deemed a waiver of any other righ1 or privilege of such Owne r . (c) Bond lnsuw Third-Party B<n<flciary; Right to Control R<m<dlts. To th e extent that this Ordinilnce confers upon or gives or grants to the Bond insurer any right. remedy or claim under or by reason of this Ordinance. the Bond In surer is hereby explicitly recognized as being a third-party beneficiary hereunder and may enforce any such rigLt, remedy or cl ai m conferred, given or gran1ed hereunder. Upon the occurrence and continuance ofan Evcn1 of Default. so long as it is not in defauh of its obli ga 1ions under the Bond Insurance Policy, the Bond In surer shal l be en 1i1 led to contro l and direct the enforcemem of all ri ghts an d remedies gran ted to th e Owners under th is Ordinance and pursuant to State law . Seclion 19. Amendme nt of Ordinance. (a) Amendments Permitted wilhout Notice to or Consent of Owner~. rne City may, without the consent of or notice to the Owners of the Bond s. adopt one or mo!".: rdinances amen ding or supplementing thi s Ordinance (w hich ordinances shall thereafter become a pan he:cof) for an y one or more or all of the follow ing purposes: 02-l 19J9J.0I (i) to cure any amb igu ity or to cure , correct or suppl ement an y defect or inconsistent provi sion of this Ordinance; (i i) to subject to this Ordinance or pledge to the payment of the Bonds additional revenues. propenics or co ll ateral ; (i ii) to in st itute or te:min ate a book -entry registration system fer the Bonds or to faci litate the desi gmition of a su bsti tute sec uriti es depository with respect to such a system; (iv) to ma intain the then existing or to secure a higher rati ng of the Bonds by any na1io nally recogn ized securities rarin g agency ; or (v) to make an y other change that docs not ma 1eriall y adversely affca the Owners of the Bonds. II (b) Amendments Rtqulrln g No t/ct to and Consent of Owners . Except for amendments permitted by subs ection (a) of this Sect 11;,n, this Ordintlncc may onl y be amended (i) by a ordinance of 1hc • City amending or supplementin g 1hiit Ord ina nce (which , after the consents requi red the refor, shall become a pan hereof): and (ii) wi th the written consent of the Owners of nt lea.st 66 -2/3% of the Bond Ob ligation : provided th en any amendment th nt make s any of the fo ll owi ng changes wi th respect to Bny Bond shnll n01 be efTcc tivc without 1he wriuen co nse nt of 1he Owner of such Bond : (A) a change in the maturity of such Bond : (B) n reductio n of 1h e interest rate on such Bo nd : (C) a change in the te rm s of redempt io n of such Bond ; (D) a de lay in the payme nt of principa l of or int erest on such Bond : (E) a re ducti on of 1hc Bond Ob li gation the consent of the Owners of whi ch is required for 11n amend ment to this Ordinance ; or (F) 1he esta bli shme nt of II pri ority or preference for 1he pay ment of an y runou nt due wi th respect to any oth er Bond over such Bond . (c) Proctdurt for No tifying and Obtaining Consent of Owners. Whenever the consen 1 of M Owne r or Owners of Bonds is required under subsection (b) of this Section. th e City shall mail a norice 10 such Owner or Owners at th ei r addresses as se t fo nh in the regi stration books maintained by the Paying Agent and 10 th e Und erwrite r. which notice shall briefly describe the proposed wnendment and stale that a copy of the amendment is on file in the o{ 1cc of th e City for inspec1ion . Any -;-onscn1 of an y Owner of any Bond obtained with re spect to an ame ndme nt stall be in writin g and sha ll be fin nl and not subj ect to withdrawal, resci ss ion or modifica1 io n for a period of 60 days afltr it is de liv ere d to th e City urless another time period is stated for such purpose in the notice mniled pursuan1 10 this subsec1 ion. (d) Cons~nt of lhe Bond Insurer In Addillo n to Consent of Owntrl'. Th e Bond In surer 's conse nt shall be required in addnio n to the constnt of Owners, when required, fo r th e fo ll owi ng purposes: (i) execution t1nd delivery of My supplemental Ordinnnce or any amend men t, supplement or ch1111ge to or modifi calion of thi s Ordin1111cc ; (ii) removal of the Paying Agent lllld selection and appo in tmen t of a successor; and (iii) initi ation or approval of any action not described in (i) or (ii) above which requires the conse nt of Ow ne rs . Section 20. Appointment and Duties or Pa yi ng Agenl The Payi ng Age nt id en 1ified in the Secti on • hereof titled "Defi nition s" is hereby appo inted as paybg agent , reg istrar and au 1hen 1icatin g agenl for the Bond s unle ss and un1il th e Chy remove s it a.s such IUl d appoi nts a successo r Payin g Agent , in which even1 such successo r shall automa1icall y succeed to th ,. dutie s of the Paying Agent hereunder and its predecessor shall immcdia1ely tum over all its records regarding the Bonds 10 such successor. Th e Paying Agent shall agree to perfo nn all duties and to take all actio ns ass igned to it hereunde r in accordance wi th th e 1erms hereof. Section 21. Approva l or Rel ated Documents. Th e Cou ncil here by r.uifies and approves lh e distri bution and use in co nn ection wi th the offering of the Bonds of the Prelim inary Officil?I State ment re lating to lh e Bonds; authorize s an d directs the prep:muion of. and au thorizes and directs the e::ec ul io n by th e Mayor of the Co un cil of, 311 Offi cial S1atemen1 for use in connecti on with the sale of th e Bonds in substantially the fom: of the Preliminary Officia l Statement, with such changes the rein . if any , not incon sistent herewith. as ru,: approved by the Ma)·or of th e Cou ncil (w hose signature th ereo n shall co nstitute conclusive evidence of s~c h approva l); and for a period of sixty days following the ado pt io n of this Ordin1111ce . the Director of finance and Admini strative Services is auth orized to execute the Sale Certifi cate and to execute the Bond Pu rchase Agreement, whi ch shall be in sub stantia ll y the form presented to the Ci ty at this meetin g an d shall be com pl eted in accordanc e with the 1enns cf this Ordi nance (wh ich. once exec ut ed, shall co nsti tute co nclus ive evide nce of approva l of th..: City). Th e Mayor a the Counci l. th e City Clerk and all ot h<r appropriate officers of th e Co un ci l arc also hen:by authori1.ed and directed 10 execute 311 un dertaking to facilitate compliance wi th Sec urit ies lllld Exchange Commission Rule l 5c2-12 (17 C.F .R. § 240 .1S c2 -12), the DTC Bl anket Letter of Repre sentation s, the Paying Agent Agreement, a ·•Tax Co mplinnce Ce rtific ate" or si milar ce rtifi cate desc ribin g the City's expectatio ns regarding th e use and investm r"l l ti proceeds of th e Bonds an d other mon eys and the use of 1h c Project , an Inte rn al Revenue Service F,.-m 803 8-G wi~~ respect to the Bonds and all other docume nts nnd ce nificrucs necessary or desirab le to cffecn.tllc the issua nce or administration of the Bonds , the investmen t of proc eeds of the Bon ds and th e tran sactio ns contemp lated he re by. Section 22. Auth orization or Bond Insuran ce . (11) The officers of th e City are hereby authorized and directed tom.kc all ac ti ons necessruy to cause th e Bond Insurer to issu e the Bond Insurance Poli cy in accord.'U\ce with 1hc Co mmitment. includi ng • 01-11 939$0I 12 • • without limitation , payment of the premium due in connection therewith . The execution of the Commitment by the appropriate officer of the City is hereby ratified and approved . (b) ln the event that, on the second Busi ness Day, and again on the Business Day, prior to the payment date on th e Bonds, the Paying Agcnl h11S not received sufficient moneys to pay all principal of and interest on the Bonds due on the second following or following, as the case may be, Business Day, the Pay ing Agent shall immediately notify the Bond Insurer or it s designee on the samr. Busin ess Day by telephone or telegraph , confinned in writing by registered or certified mail , of the amount of the deficiency . (c) If the defici ency is made up in whole or in purt prior to or on the payment date, the Paying Agent shall so notify the BonJ Insurer or its designee . (d) In addition , if the Payi ng Agent has notice that any Owner has been required to disgorge payments of principal or interest on the Bonds to a trustee in Bankruptcy or creditors or oth ers pursuant to a final judgment by a co urt of competent jurisdiction that such payment constitutes an avoidable p-eference to such Owner within the meaning of any applicable bankruptcy laws , then the Paying Agent shall notify the Bond Insurer or its dtsignee of such fact by telephone or telegraphic notice , confinned in writing by registered or cenified mail. (e) The Paying Agent is hereby irrevocabl y designated , appointed, directed and authorized to act llS anomey•in•fact for Owners of the Bonds as follows : (i) If and to the extent there is a deficiency in amounts required to pay interest on the Bonds, the Paying Agent shall (a) exec ute and deliver to State Street Bank and Trust Company 1 N.A., or its successors under the Bond lnsurance Policy (the "Insurance Paying Agent"), in fonn satisfactory to the Insurance Paying Agent, an instrument appointing the Bond Insurer as agent fir such Owne rs in any legal proceeding related to the payment of such interest and an assignment to the Bond Insurer of the claims for interest to which such deficiency relates and which arc paid by the Bond Insurer, (b) receive a designee of the respective Ow ne rs (and not 11.5 Paying Agent), in accordance with the tenor of the Bond Insurance Policy, payment from the Insurance Agent with respect to the claims for interest so assigned. and (c) disburse the same to such re-.spective Owners ; and (ii) If and to the extent of a deficiency in amounts required to pay principal of the Bonds , the Paying Agent shalt (a} execute and deliver to the In surance Paying Agent in form satisfactory to the Insurance Paying Agent an in strument appointing the Bond Insurer as agent for such Owner in any legal proceedin g relating to the payment of such principal and an assignment to the Bond Insurer of any of the Bonds surrendered to the Insurance Paying Agent of so much of the principal amount thereof as has not previously been paid or for which moneys are not held by the Paying Agent and available for s;;ch payment (but such assignment shall be delivered only if payment from the Insurance Paying Agent is rec eived), (b) receive as designee of the respective Owners (and not as Paying Agent) in accordance with the tenor of the Bond Insurance Policy payment therefor from the Insurance Paying Agent. and (c) disburse the same to such Owners. (f) Payments with respect to claims for interest on and principal of Bonds disbursed by the Paying Agent from proceeds of the Bond lnswance Policy shall not be considered to discharge the obligation of the City with respect to such Bonds, and the Bond Insurer shall become the owner of such paid Bonds and claims for the interest in accordance with the tenor of th e assignment made to it under the provis ions of this subsection or otherwise . (g) Irrespective of whether any such assignment is exer:· ~ and delivered. the City and the Paying Agent hereby agree for the btnefit of the Bond ln scr.r that: 01-ll9J9J.0I (i) They rccogniz.e that to the extent the Bond Insurer makes payments, dittctly or indi1 tctly (as by paying through the Paying Agent}, on account of principal of or interest on the Bonds , the Bond Insurer will be subrogated to the rights of i:uch Owners to receive the amount a such principal and interest from the City , with interest thereon as provided and so lely from the sources stated in this Ordinance and the Bonds ; and 13 (ii) Th ey will accordingly pay 10 lhe Bond Insurer lhe amount of such principal and • interest {including principal and interest recovered under subparagraph (ii) of the first paragraph ri the Bond In surance Policy, whkh principal and in1eres: sha ll be deemed past due and not to have been paid), with intcrc;;t thereon as :,rovided in this Ordinance and lh e Bonds. but only from the sources and in the man ner provided herein for the payment of principal of and interest on the Bonds to Owners, and will otherwise treat the Bond Insurer as the owner of s uch rights to the amount of suc h principal and interest. (h) In connection with the issuance of additio nal Bonds , the City sh all deliver to the Bond Insurer a copy of the disclosure document, if any, circulated with re spect to such addi tional Bonds . (i) Copies of My amendments made to th e documents executed in connection with th e issua nce cl the Bonds which are consented 10 by the Bond In sure r shall be sent to Slandard & Poor's Ratings Services, a Division of The McGraw-Hill Companies, Inc. (j) The Bond Insurer shall receive notice of the resignation or removal of the Paying Agent and the appointment of a successor thereto. (k) The Bond Insurer shall receive copies of all notice s required to be delivered lo Owners and, on an annual basis , copies of the City's audited financial state ments and Annual Budget. Any notice that is required to be given to a Owner of the Bonds or to the Paying Agent pursuant to this Ordinance shall also be provided to the Bond In sure r. All notices requir · lo be given to the Bond Insurer under th is Ordinance shall be in writing and shall be sent by registered o: ·enified mail addressed to MBIA Insurance Corporation, 113 King Streel, Annonk, New York 10504, Attentio11 : Su rveillance , Section 23. Event. Occurring on Days That Are No ', Business Days. Except as oth erwise speci ficall y provided herein with respect to a panicular payment , even t or adon, if any payment to be made hereunder or any event or action to occur hereunder which, but for this Section, is :i, he made or is to occur on a day that is not a • Busines~ i)ay , such payment, event or action shall instead be made or occur on th e next succeeding day that is a Businr.ss Da y with the same effect a.s if it wa.s made or occurred on the date on which it wns originally sc heduled to be made or occur. Sectlo~ 24 . Limitation of Actions. In accordance with Section 11-57-212. Co lorado Revised Statutes, no legal or equitable action can be brought with respect to any legislative acts or proceedings in connection with the authorization or issuance of the Bonds more than 30 days after the issuance or autho ri za tion of suc h securities, whichever occurs later. Section 25. Ordinance is Contract with Owners of Bonds and lrrepealable. After the Bonds have been issued, this Ordinance shall be o.nd remain a contract between the City and the Owners of the Bonds and shall be and remain irrcpealable until all amounts due with respect to the Bonds shall be fully paid , satisfied and discharged and all other obligations of the City with respe~t to the Bonds shall have been satisfied in the manner provided herein. Section 26. Headings. The headin ~ to the various sections and subsections to thi s Ordinance have been inserted solely for the convenience of the reader, are not a pan of thi s Ordinance and shall not be used in any manner to interpret this Ordinance . Seclion 27. Severability. It is hereby expressly declared th at all provisions hereof and their application are intended 10 be and are seve rable . In order to implement such intent, if any provision hereof or th e ap plication thereof is detennined by a coun or administrative body to be invalid or unenforceable, in whole or in pan, such detennination shall not affect, impair or invalida1e any other provision hereof or the appli cation of the provi sion in question 10 any other situa tion ; and if any provision hereof or the application thereof is de1ennined by ~-co urt or administrative body to be valid or enforceable only if its application is limited , its application shall be limited as required to most fully implement its purpose. OJ./ /9J9J OJ 14 • • s~:tlon 18. Repeal of lncon~lstent Ordla ■nces , Resolutions, Bylaws, Rules ■nd Orders. All ordinances , resolutions , bylaws , rules and orders, or pans thereof, that are inconsistent with or in confV.ct with this Ordinance, an, hereby repealed lo the eX'.cnl of such incons i:..ency or conflict. Section 29. lutinc■tion of Prior Action~ All actions hcrctofor< taken (not inconsistent with the provisions of tllis Ordinance, the Act or the Ballot Question) by the Col!llcil or by the ollicml and employees of the City directed toward the issuance of the Bonds for the purposes heroin set forth arc hmby ratified, approved and confinned. Section 311. Declantlon of Emeriency. The issuance of the Bonds was approved by Citywide election in November of2001 and City Council has bee n adv ised that the delivery of the Bonds shonly aftor their sale will permit the City to obtain the lowest interest rates possible for the Bonds ; therefore, the Council hereby finds and determines that this Ordinance is necessary fur the immediate prcscrvmion of public propcny, health , peace w,d safety and shall be in full force and effect immediately upon final pass 1gc by the Council. Introduced, read in full , and passed as an emergency ord in ,cc on fust reading, on the 5th day of August, 2002 . Published as a Bill for an Ordinance on the 9• day of August, 2002 . Read by title and passed on final reading as an Emergency Ordinwicc on the 19• day of August, 2002. Published by title as Emergency Ortlinancc No . 21---, Series of 2007, on the 23 " day ol August, 2002 . I, Loucrishia Ellis , City Clerk for the City of Englewood, Colorad , ereby certify that the above and foregoing is a ~•PY of the Emergency Ordinance passed on final re · an published by title as Emergency Ordinance No .+ 1 Series of 2002 . Loucrishla A. Ellis , City Clerk 01-119J9J.0J 15 No .R-_ "A" Intcres1 Rate % FORM Or BOND UNITED STATES or AMER ICA STATE or COLORADO CITY or ENGLEWOOD, COLORADO GENERAL OBLIGATION BOND SF.RIES 2002 Maturity Date December I. Originol Daled Dale REGISTERED OWNER: Cede & Co . Tax lde n1 ifica1ion l"umber: 13-2555 11 9 PRINCIPAL SUM : " s __ _ CUS IP DOLLARS., The City of I:..,~lewood , Colorado. a duly organized a11d valid ly ex isting home-rule municipa lity of the State of Co lorado. for valu ... ,1:ceived, hereby promise s to pay 10 the order of the registered owner named above, or registered assigns, the principal sum stated above on the maturity dat~ stntc d above, with interest on such principal • sum from the original dated date stated above at the interest rate p-::-annum stated above (calculated based on a 360-dny year of twelve 30-day month3), payable on June I and Decerr,bcr I of each year, comme ncing ___ . Capitalized 1em1s used but not defined in this bond sha ll have the mean ing assigned to them iu the Ordinance of the Ci~ authorizing the issuance of the Bonds . The principa l of and interest on thi s bond is payn bl e 10 the registered owner hereof upon presentation and surrender of th is bond nt 1he principal opera ti ons office of The Bank of Ch eny Cree~ a branch of Western National Bank , as paying age nt . in Denver, Co lorad o, or at such othe r office of the Paying Agent de signa ted by the Paying Agent for such purpose . Interest on 1his bond 1s payable by check or draft of the Paying Agent mailed on the Interest Pnymenl Date to th e registered ow ner hereof as of the fifteenth day of the month immediately preceding the month (whethe r or not such day is a Busine ss Day) in which the Interest Payment Dale occurs ; provided that . interest payable 10 th e regi stered owner of this bond may be paid by any other means agreed to by such registe~d owner and the Pny in g Agent that doe s not require the City to make mone ys avni lab le to the Paying Agent C"arlier than otherwise required under the Ordinance or increase the costs borne by the City under the Ordinance ; provide,! further , that , so long as Cede & Co . is the registered owner of this bond , the principal of and intere st on th is bo nd sha ll be paid by wire tran sfe r to Cede & Co. Any payment of principal of or interest on this bond that is clue on a day that is not n Business Day shall be made on the next succeeding day that is a Business Day with th e same effiu as if made on the day on which it was originally scheduled to be made . All payments of principal of and interest on tJli s bond shall be made in lawful money of the United States of America . This bond is pan of an issue of general obligation bonds of the City designated the City of Englewood, Colorado, General Obligation Bonds, Series 2002 , issued in the principal amount ors.-~~~ (the "Bonds "). 1be Bonds have been issued punuant to , under the aut hority of. and in full confonnity with. the Chancr. lhe Constitution and the lttws of the State, including , in parth:ular. Pan 2 of Anicle 57 of Title 11 . as amended (collectively. the " Act"); purs uant to aut hori zati on by a majority of the re gistered electors of the City voti ng in an election duly called and held on November 6, 2001: and pursuant to a ordinan ce adopte d by the City Council of the City . THE ORDINANCE CONSTITUTES THE CONTRACT BETWEEN THE REGISTERED OWNER OF THIS BOND AND THE CITY . THIS BOND IS ONLY EVIDENCE OF SUCH CONTRACT AND , AS SUCH, 02-Jf9J9J0 I • • • • IS SUBJECT IN ALL RESPECTS TO THE TERMS OF THE ORDINANCE , WHICH SUPERSED ES ANY INCONSISTENT S',ATEMENT IN THIS BOND . Simultaneousl y with the iss unnc c of 1he Bonds, the City is al so iss uing liCparotc, detail ed Registered Coupons evidencing add iti onal interest on the Bonds , Th e interes t rar e st111cd above is the intere st designated as "A" on the Bonds . Owners of the Bonds will receive only the pr;ncipal of nn d interes t designated in tt.c Ordinance as "A" on the Bonds . Owners of the Regi stered Coupons will receive onl y interest designated in th e Ordinance as "B"' on the Bonds . The Bonds have been issued by the City for the purpose of prov iding funds for the Project described in the Ordinance . 11ie Bonds arc general obligations of the City and the full faith and credit of the City arc pledged for the punctual payr,1en1 of the principal of and interest on the Bonds . For the purpose of paying the principal of and interest on the Bonds when due, respectively, the Council in the Ordinance has covenanted annually to dctennim: and certify to the Board of County Commissioners of Arapahoe County, B rate of k:vy for general ad valorem taxes , without limitation as to rate or amount, on all of the taxable property in the City , sufficient to pay the principal ri and interest on the Bonds when due , respectively . whether at maturity or upon i!arlier redemption . [The redem ption provision s from Section 4 of the Ordinance and the Sale Certificate shall be set forth herein.] Notice of any redemption of Bonds shall be given by th e Paying Agent in the name of the City by sending a copy of such notice by first-class , poslage prepaid mail , not less than 30 days prior to the redemption date , to the Owner of each Bond being redeemed . Such notice shall specify the number or numbers of the Bonds so 10 be redeemed (if redemption shall be in pan) and the redemption date. If any Bond shall have been duly called lir redemption and if, on or before the redemption date , there shall have been deposited with the Paying Agent in accordance with this Ordinance funds sufficient to pay the redemption price of such Bond on the redemption d:&te, then such Bond shall become due and paya ble at such ,edemption date , and from and after such date interest will cease to accrue thereon . Failure to deliver any redempti on notice or any defect in any redemption notice sh nll not affect the validity of the pr-='Ceeding !"or the redemption f Bonds with respect to which such failure or defect did not occur. Any Bond redeemed prior to its maturity by prior redemption or otherwise shall not be reissued and shall be cance lled. The Paying Agent shall maintain regislJ'lltion books in which the ownership , transfer and exc hange ri Bonds shall bl '!corded . The person in whose name this bond shall be registered on such registration books shall be deemed to I,. the absolute owner hereof for 11II purposes , whether or not payment on thi s bond shall be overdue, and neither th 1, .::i ty nor the Paying Agent shall be affected by any notice or other infonnation to the contrary . This bond may be transferred er ~xchanged at the principal office uf the Paying Agent in Denver, Colorado , or at such other oflioe of the Poying Agent designated by the Paying Agent for such purpose for a like aggregate principal amount of Bonds of other authorized denomination s ($5,000 or any integral multiple thereof) of the same maturity and intere,;t rate, upon payment by the transferee cf a reasonable transfer fee established by the Paying Agent, together with any tax or governmental charge required to be paid with respect to such transfer or exchange and any cost of plinting bonds in connection therewith . Notwithstanding any other provi sio n of the Ordinance , the Paying Agent shall not be required to transfer any Bond (a) which is scheduled to be redeemed in whole or in pan between the Business Day immediately preceding the mail ing of the notice of redemption and the redemption date; or (b) between the Record Date for any Interest Payment Date and such Interest Payment Date. The Ordinance may be amended or supplemented from timc~to-time with or without the consent of the registered owners of the Bonds as provided in the Ordinance . It is hereby cenified that all conditions, acts and things required by the Ch aner, the Cc.nsti tution and laws of the Sh te. including the Act, and the ordinances of the City, to exist, to happen and to be performed, precedent to and in the issuance of this bond, exist, have happened and have been performed., and that neither this bond nor the other bonds of the issue of which this bond is a pan exceed any limitations prescribed by the Chaner, the Constitution or laws of the State , including the Act. or the ordinances of the City . This bond shall not be entitled to any benefit un~er the Ordinance, or become valid or obligatory for any purrose . until the Pr:•ing Agent shall have signed th\! certificate of authentication hereon . )1-119J910/ A-2 IN WITNESS WHEREOF, the City Council of the City has caused this bond to be executed with the • si~ of its Mayor and anested by the si gnature of its City Clerk, and has caused the sea l of th e City 10 be impressed or imprinted hmon, all as of the date set forth be low. THE CITY OF ENGLEWOOD [CITY SEAL] By _________________ _ Mayor Anes i: By __________ _ Dated: City Clerk CERTIFICATE OF AUTHENTICATION This bond is one of the bonds of the issue described in the within-mentioned Ordinanc ,., THE BANK OF CHERRY CREEK, A BRANCH OF WESTERN NATIONAL BANK, ,,. Paying Agent By ________________ _ Authori7.cd Signatory STATEMENT OF INSURANCE [The statement of bond insurance r,,qui=l by the Commitment shall be set forth her,,.] 01-1 /9J9J.0 / A-3 • • • • • APPROVING LEGAL OPINION Set fo rth below Is a true co py of the approving legal opinion ofKutak Rock I.LP, delivered on the date on which the Bonds were originally i5sucd : [The form of legal opinion ofBond Counse l sha ll be set forth here .] I, the under,igncd City Clerk of the City ofEnglewood , Colorado , do hereby certify that the foregoing approving opinion of Kutnk Rock LLP, Denver, Colorado, is a true and complete copy of a manually executed and dated copy thereof on file in the official records of the City. By _ _._(ti .. acs..,..jmwi .. Je_.s,.jgn .. a,.ru .. a:.._J._ ________ _ City Clerk ASSIGNMENT FOR VALUE RECEIVED the under,igned hereby sells, assigns and transfer, unto (Please print or typewrite name and address ofTransfen,e) (Tax Identification or Social Security No .) the within bond and all rights thereunder, and hereby irrevocably constirutes and appoints-,-------- ---.,---,--,-•ttomey to tmnsfer the within bond on the books kept fur re~istration thereof, with full power or substitution in the premises. Signablrc Guaranteed : Signaturc(s) must be guaranteed by a national bank or trust company or by a brokerage firm havi ng a membership in one of the maja, stock exchanges. NOTICE : The signablrc to this assi g, ment must correspond with the nam e as it appears upon the face of the within bond in every particular, without alteration or enlargement or any change whatever. TRANSFER FEE MAY BE REQUIRED 01-l /9JPS.0/ A-4 No . RC-_ ~e., Interest Payment Date APPENDIX B FORM OF REGI STE RED COUPON UNITED STATES OF AMERI CA STATE OF COLORADO CITY OF ENGLEWOOD, COLORADO REGISTERED "B" INTERE T COUPON Amount Of 14 8 " Interes t Due On "8 " Interest Payment Date $ __ _ REG ISTERED OWNER: Ce de & Co . Tax Identifi cation Number : 13-2555 11 9 PRINCIPAL SUM : " s __ _ CUSIP DOLLARS'' The City of Englewood, Co lorado (the "City"), a du:y organ ized and validly existing home-rule municipality of th e State of Co lorad o (th e "S tate"), for value received. here by promi ses to pay to the re gistere d owner nwncd above, or registered assigns , on th e payment dn1e se t fonh above. the wnount set forth above, which nmount represents a proport io nal lnteresl in the tota l amount of supplemen1al interest designated "B" to be paid on the outstanding principal amount of the City's General Ob ligation Bon ds, Series 2002 , dated ____ ruid iss ued in .he nggrcgatc principal amount of$ ____ (th e "Bonds"), The Bonds and the "8" interest on the Bonds evide nced by thi s Re gistered Coupo n have been authorized by a ordin11ncc or th e Cily passed 11nd adopted by th e City Co uncil or the City prior to th e issuance hereo f (the "Bond Ordin11nce "), Th e Bond Ordinance may be amended or supp lemented from time-to-time with or without the consent or th e registered owners or the Reg istere d Co upons as prov ided in the Bon d Ord inance . The Bonds mature , bear interest. and arc subj ect to redempti on, all as specifica lly set fonh in the Bond Ord in ance , and th e provisions d th e Bond Ordinance arc hereby incorporat ed herein by refere nc e. The "B" interest is calc ulated at the rate and in the mann er set fonh in th e Bond Ordinance. The amount of "B" intere st payable hereunder is paya ble in lawful money of the United States of America to th e registered ow ner hereof upon prese ntation and surrender of thi s Registered Co upon at the principal office d The Bank of Cherry Creek , a brun ch of Weste rn National Bank , as Pay ing Agent (the "Pay ing Agent"), in Denver, Colorado, or at such other loc ation as the Payi ng Agen t may direct. If th e da te for maki ng payment or performing any action regarding this Re gistered Coupon is on a day th at is not a Bu si ness Day (llS defined in Bond Ordinance) such payment sha ll be made or act performed on the next succeedin g day that is a Busine ss Day with th e same effed as if made on the day on which it was ori gin ally sc hed ul ed to be made . Thi s Rct;1ste rcd Co upon may be transferred, e. chMged. and reissued at the principal office of the Paying Agent. or its r·1 ccesso r as Pa yi ng Agent, all in accordance ~ith the Bond Ordinance . This Registered Co upon shall not be entitl ed 10 any benefit under the Bond Ordim1nce , or beco me vali d or obligatory for any purpose, until the Paying Agr,nt shall have signed the certifk:i:.: of authentication hereon. THE BOND ORDfNANCE CO NSTITUTES THE CONTRACT BETW EE N THE REG ISTE RED OWNER OF THIS REG ISTERED COUPON AND THE CITY. THI S REGISTERED COUPO N IS ONLY EV ID ENCE OF SUCH CONTRACT AND. AS SUCH. IS SUBJECT fN ALL RESPECTS TO THE TERMS OF THE BOND ORDfNAN CE, WHICH SUPERSEDES ANY fN CONS IS TENT STATEMENT fN THI S REGISTERED COUPON. 01-l/9J9l0/ • • • • IN WITNESS WHEREOF , the City Council of the City has caused this Registered Coupon to be executed wilh die signalUre of its Mayor and attested by the signalUre of ils City Clerk , and has caused the seal ri the City 10 be impressed or imprinted hereon, all as of the date specified above . THE CITY OF ENGLEWOOD [CITY SEAL] By ________________ _ Mayor Attest : By ___________ _ City Clerk CERTIFICATE OF AUTHENTICATION This Registcrrd Coupon is one of the registered coupons destrbed in the wilhin •mcntioned Bond Ordinance. Dated: _____ _ THE BANK OF CHERRY CREEK, A BRANCH OF WESTERN NATIONAL BANK, as Paying Agent By ________________ _ Authorized Signatory STATEMENT OF INSURANCE [The statement of bond ins urance required by the Comminnent shall be set forth here .] ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto (Pleue print or typewrite name and address of Transferee) (Tax ldentincation or Social Seeurity No.) the within registered coupon and all rights themmder, and hereby irrevocably constitutes and appoints ___ _ --c----,--,,---,,--,..,....,,.,.,.--attorney to 1ransfcr the within registered coupon on the books kept ir registration thereof, with full power of substitution in the premises . 01-119J9J.0I B-2 Dated : _____ _ Signature Guamnteed: Signature(s) must be guaranteed by a national bank or trust company or by a brokmgc furn having a mcmbenhip in enc of the major stock exchanges . NOTICE : The signature to this assignment must co=i,ond with the name as it appears upon the filce of the within registered coupon in every particular, without alteration or enlargement or any change whntcver. TRANSFER FEE MAY BE REQUIRED 01-l/9J9S.0/ B-3 • • • • • COUNCIL COMMUNICATION Date Agenda Item Subject August 5, 2 12 11 a ii i Proposed Bill for an Emergency Ordinance Au th orizing the Issuance of Bo nds for the Parks and Recreation Aquatics Park Project Initiated By I Staff Source Departmen t o f Finan ce an d Administrati ve Services Frank Gryglewicz, Dire ctor COUNCIL GOAL AND PREVIOUS COUNCIL ACTION The City Coun cil has discusse d this project at num erous me etings over the past three years. The citi e,s of Englewood ap prove d issuance of S 12,800,000 of gene ral obligation bonds at the election held Noveml."r 6, 2001. The City issue d S5 ,810,000 of the bonds in 2001. RECOM MENDED ACTION Staff recommends Counci l app rove the attached bi ll fo r an emergency o rdinan ce auth o rizing the issuance of $6,990,000 in ge neral o bligati on bo nds . BACKGROUN D, ANALYS IS , AN D ALTERNATI VES IDE NTIFIED Th e Ci ty of Engl ewood Cha rt er requires a maj ority affi,mative vo te of the re gist ered elec tors to is sue general obli ga tion debt (A rticle X, Part Ill, Se cti on 104 ). The registe red voters approved issuance of $12 .8 mill ion in ge neral obl igation bonds fo r co nst.ru cting an aquatics park, and improvements to the Malley Senio r and Rec reati on Centers. Th e bonds were iss ued !n both 200 1 and 2002 to tak e ad,·antage of "bank qualified" provi sions in the federal tax code. This propose d bill for an ordinance is being pres ented as an emergency to preserve the interest rates o n the bonds. Second readi ng of this bill for ordinance w ill be A ugust 19, 2002 and the 30- day referendum peri o d w ill not be requ ired per ch anges to City Charter Section 41 approved by citizens at the election held November 6, 200 1. FI NANC IAL IMPACT Th is action should not have a di rect impact on the City's financ ial condition, as the proceeds of these bo nds will pa y for both project and issuance costs. A sepa rat e levy will be assessed to property owners in th e Ci ty for debt pa yment. LIST OF ATTAC HMENTS Pr op osed bill for an emergency ordi nance