HomeMy WebLinkAbout2001 Ordinance No. 046•
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ORDTNANCE NO . !ti?_
SERIES OF 2001
BY AUTHORITY
COUNCIL BILL NO . 48
fNTRODUCEDBY COUNCIL
MEMBER BRADSHAW
AN ORDINANCE OF THE CITY OF E GLEWOOD , COLORADO , ACTING BY AND
THROUGH ITS STORM WATER ENTERPRISE , AUTHORIZl NG THE ISSUANCE OF
STORM WATER E TERPRISE REVENUE BO 1DS, SERIES 2001 , FOR THE PURPOSE OF
Fl ANCING CAPITAL IMPROVEME NTS FOR SE IN ITS STOT M WATER
ENTERPRISE ; PRESCRIBING THE FORM OF THE BONDS; PROVIDING FOR THE
PAYMENT OF THE BONDS FROM THE OPERATIO OF THE STORM WATER
SYSTEM ; AND PROVIDrNG OTHER DETAlLS AND APPROVING DOCUMENTS IN
CONNECTION WITH THE BONDS .
WHEREAS , the City of Englewood, Colorado is a municipal corporation du ly organized
and operating as a home-rule city under Article XX of the Constitution of the State of Colorado
and the Charter of the City (unless otherwis e indicated , capitalized tenns used in this preamble
shall have the meanings set forth in Section I of thi s Ordinance ); and
WHEREAS , as codified in Title 12, Chapte r 5 of the Municipal Code , the City has
established its Storm Wa ter Enterprise ; and
WHEREA , the Storm Water Enterprise constitutes a ~water activity enterprise " with in
the meaning of the Title 37 , Article 45 .1, C.R.S .. and a government-owned busine ss which is
authorized to issue its own revenue bonds and which receives under 10% of annual revenue in
grants from all Colorado state and local governments combined, and it , . hereby determined that
the Storm Water Enterprise is an enterprise within the meaning of Articie X. Section 20 of the
Colorado Co nstirution ; and
WHEREAS , the CoWlcil has heretofore determined and does hereby detemr,ne that it is
necessary to construct. acquire and in.stall the capital improvements which will comprise the
Proje ct for th e benefit of the City and its inhabitants · and
WHERE AS, pursuant to Secti on I 05 of the Chart er the Ci ty ma y issue re ven ue bond s as
pro vided for municip al itie s by tale statute and re venue bonds for a st onn water enterpri se an:
permi tted under Title 31, Art ic le 35. Part 4, C.R .. and Title 37 Arti cl e 45 .1, C.R.S .; and
WHEREAS , the Council does hereby detennine that it is in the be st interests of the City ,
and the resident s the reof. th at Storm Water Enterprise Rev enue Bond s. Series 2001 be iss ued to
finance the Proje ct; and
WHERE S. th e Counci l has been pre nte d wi th a proposal fro m George K. Baum &
Com pan y, of Den ver . Co lo rad o, to purchase the Bonds upon specifi ed term s and condjtions and .
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after con sideration, th e Council bas determined that the negotiated sale of the Bonds to sai d
company is to the best advantage of the City; and
WHEREAS , the City has no Outstanding bonds or other obligations having a first lien on
the Net Revenue of the Storm Water Facil it ies ; and
WHEREAS , the City Council desires to authorize the issuan e and sa le of the Bonds and ,
as provided in Tide 11 , Article 57 , Part 2, C.R.S., delegate the authority to th e Direc tor of
Finance and Administrative Services to determine the Dated Date:, intere st rates and annual
maturities for the Bonds, as well as the dates on which the Bonds ma y be redeemed and the
ex istence of any capitalized interest, in accordance with th~ provisions of this Ordinance ;
NOW , THEREFORE , BE IT ORDAINFD BY THE CITY COUNCrL OF THE CITY
OF ENGLEWOOD, COLORADO AS FOLLOWS :
ection 1. Definitions . As used herein , the following capitaliz.ed terms shall have
the respective meanings set forth below unless the co nteXl indicates otherwise.
• Acts" means the Charter , Title 12, Chapte r 5 of the Municipal Code ; Title 37 ,
Articl e 45.1, C.R.S.; Title J l, Article 35 Part 4, C.R.S.; and Title 11 , Article 57 , Part 2, C.R.S.
"Beneficial Owner" means any person for which a Participant acquires an interest in the
Bonds.
"Bond Account" means the "St onn Water Enterprise 200 I Bond Account," established by
the provisions hereof for the purpose of paying the principal of, premium if any , and · terest on
the Bonds, incl udin g the lnterest Subaccount and the Principal Subaccount.
'Bond CoWtSef' means (a) as of the date of issuance of the Bonds Kulak Rock LLP , and
( ) as of any other date , Kutak Rock LLP or such other at1omeys se le cted by the City with
nationally recognized expertise in the issuance of municipal bonds.
''Bond Purchase Agreement" mean s the agreement between the City and the Purchaser
concerning the purchase of the Bonds by th e Purchaser and the delivery of the Bonds by the City
and setting forth among other things the Dat ed Date , interest rates and annual maturities for the
Bonds, as well as the dates on which the Bonds may be redeemed and e existence of any
capitalized interest.
"Bond Registrar" means The Bank of he rry Creek, N.A., in Denver , Colorado, which
shall perfonn the funct ion of regi~trar with respect to the Bonds.
"Bonds" means the Storm Water En terprise Revenue Bonds Series 200 I, auth orized b
this G:-dinance.
"B11siness Day·• means any day other than (a) a Sarurday or Sunday or (b) a day on which
banking institutions in the State are authorized or obligated by law or exe cutive order to be
clos.-d fJr business .
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"Capital Impro vements" mean he acqu':;;tion of land , easements, facilities and
equipment (other than 01dinary repairs a. replacements), and the construction or reconstruction
of improvements, bcttennents and extensions, for use by or in connection with the Storm Water
System which, under Generally Accepted Accounting Principles for governmental units as
prescribed by the Governmental Account Standards Board. are properly chargeable as capi tal
items.
"Cede " means Cede & Co., the nominee of DTC as record owner of the Bonds, N any
successor nominee ofDTC with respect to !he Bonds.
"Certified Public .-l ccountanr" means an independent certified public accountant within
the meaning ol § 12-2-115. C .R.S. and any amendment thereto. licensed to practice in the State
of Colorado.
"Charter" means the home rule Chaner of the City .
"City" means the City of Englewood. Colorado, acting by and through its Storm Water
Enterprise.
"Code " means the Internal Revenue Code of 1986, as amended .
"C mbined Maximum Annual Principal and Interest Requiremenls" means , with respect
to the Bonds or an issue of Parity Lien Bonds for which such term is used, an amount equal to
the maximum amount required to be paid in any single current or future calendar year as the
principal of (including any mandatory sinking fund requirements) and interest on Outstanding
Bonds or Parity Lien Bo nds, respectively , excluding any such bonds wbich have been defeased
pursuant to the terms of the authorizing documents . or purposes of calculating the Combined
Maximum Annual Principal and Interest Requirements in any calendar year of fin maturity of
the Bonds or an issue of Parity Lien Bonds, respectively, there shall be subtracted from the final
principal payment fo r said bonds any cash or the present value of any investments deposited in a
reserve fund or account established pursuant to the authorizing documents which are properly
allocable to said bonds. For purposes of calculating the Combined Maximum Annual Principal
and Interest Requirements for any issue of securities bearing a variable, adjustable or other
similar rate which is not fixed for the entire term thereof, it shall be assumed that any such
securities Outstanding at the time o f computation will bear interest during any period, if the
interest rate for such period has not been determined. at a fixed rate equal to the nighest rate
borne during the preceding 36-month period or if the securities have not been outstanding for i:
36-month period, two-hundred basis points above the rate borne by said securities on their date
of issuance .
"Conrinuing Disclosure Undertaking •· means the Continuing Disclosure Undertaking of
the City executed and delivered by the C ity in connection with the issuance of the Bonds to
facilitate compliance with Securities and Exchange Commission Rule 15c2-12 (17 C .F.R. §
240. I 5c2-12).
"Consulting Eng ineer" means any qualified . registered or licensed professional engineer
practicing under the laws of th e State o f Colorado, who is independent in foct and not an officer
or employee of the City .
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"Councir' means the City Co unc il of the City acting as I.he governing body of the Stonn •·
Wa ter Enterprise.
"C.R.S." means the Colo rad o Revised Statutes, as amended and supplemen d as of the
date hereof.
"Dated Date " means the dated date for the Bonds as established in th e Bond Purchase
Agreement.
"Defeasance Securities' means bills, cenificates of indebtedness , notes , bonds or similar
securities which are direct non-callable obligati ons of the United States of America or which arc
fully and unconditionall y guaranteed as to the timely payment of principal and interest by the
United States of America.
"D ep ository" means any securities depos ito ry as the City may provide and appoint, in
accordance with the guidelines of the Securities and Exchange Commission, which shall act as
securities depository for the Bonds .
"DTC' means the Depository Trust Company, cw York. New York, and its successors
and assigns .
"DTC Letter of Represemations" means the OTC Lene r of Representations from the City
to OTC, dated December 29, 1998, to induce DTC to accept securities oftbe City as eligible for
deposit at OTC.
"Event of Default" means any one or more of the events set forth in the Section hereof
entitled "Events of Default."
"Fiscal Year"' means the 12 months commencing January I of any year and ending
December 31 of said year.
"Gross Revenue" means aJI income and revenues directly or indirectly derived by the
City from the operation and use of the Stonn Water Enterprise, including without limita tion , any
rates , fees and charges for the services furnished by , or the use of, the Storm Water Enterprise,
and all income attributable to any past or future dispositions of propeny or righ ts or related
contracts, settlements or judgments held or obtained in connection with the Storm Wat er
Enterprise or its operations, and including investment income accruing from moneys held to the
credit of the Storm Water Enterprise Fund ; provided however . that there shall be excluded from
Gross Revenue any moneys borrowed and used for providing Capital Improveme nts ; any money
and securities, and investment income therefrom, in any refunding fund , es crow account or
similar account pledged to the payment of any bonds or other obligations; and any moneys
received as grants or appropriations from the United States , the State of Colorado or other
sources, the use of which is limited or restricted by the grantor or donor to the provisio n of
Ca pital Lmprovements or for other purposes resulting in the general unavai labi lity thereof. except
to the extent any such moner shall be received as payments for the use of the Storm Water
System, services rendered 11 ~reb y. the av ·1ability of any such service or the disposal of any
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"J111erest Payment Date" means each June l nd D cember I, comm encing December l.
2001.
"Inte rest Subaccount" means a suba ccoun t o f the Bond Account reaffirmed by the
pro isions hereof for the pUIJ)Ose of paying the interest on the Bo nd s.
"Municipal ode'' means the City of f ngle.,.,o od Municipal Code. as amended .
"Ne r Re1•enu e" means th e Gross Revenue after d.educting the Operation and Maintenance
E.penses .
'Official S1arem e111" means the final version of the Prel iminary Official Statement
''Operation and Mainr enan;;e Expenses" means all reasonable and necessary current
expenses of the City, paid or accrued, for operating, maintaining and repairing the Storm Water
System including without limitation legal and overhead expenses of the City directly related to
the administratior, of the Storm Wat er Enterprise , insuranc e premiums , audits , charges of
depository banks and paying agents , r "c ssio nal services. salarie s and administrative expenses
labor and the cost of material s and s for current operation; provided however, that there
shall be excluded from Operation a. mtenance Expenses any allowance for depreciation,
payments in lieu of ta,ces or franchise fees , legal liabilities not based on con ~rac t ~xpenses
incurred in connection with Capital improvements payments due in connection with any bonds
or other obligations, and cbarges for the accumulation of reserves .
"Ordinance" means this ordinance which authorizes the is suan ce of the Bonds, including
any amendments prc,perly made hereto .
"O utstanding" means , as of any date , all Bonds and Parity Lien Bonds , except the
following: (a) any Bond cancelled by the City or the Paying Agent, or otherwise on the City 's
behalf, at or before such date; (b) any Bond held by or on behalf of the City : (c) any Bond for the
payment or the redemption of which moneys or Defeasancc Securi ties sufficient to meet aJI of
the pay ment requirements of the principal of, intere st on, and any prem ium due in connection
with the redemp ti on of such Bond to the date of maturity or any redemption date thereof, shaU
have th re tofore been deposited in tru st for such purpose in accordance with the section hereof
entit led ·'Defeasing ;" and (d) an y lost, apparently destroyed , or wrongfully taken Bond in lieu of
or in substitution for which another bond or other security sha ll have been exec•Jted and
deli vered.
'Owner·• means the registe re d owner of an y Bond, as sh wn by the registration books
main tain ed by the Bond Registrar .
·'Parity Lien Bonds" means one or more series of additional bonds , notes, interim
securities or other obligations issued by the City pur suant to the Se ction her eof entitled
"Additional Bonds ," having a lien on the et Revenue which is on a parity with the lien of the
Bonds .
''Parity Reserve Amount" means. as of any date on which it is ca.lculated with respect to
any issue of Pari ty Li en Bond s, the least of (a) I 0% of the principal amount of said Parity Lien
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Bonds, (b) the maximum an nual debt service in any calendar year on said Parity Lien Bonds or
( c) 125% of the average annual debt service on said Parity Lico Bonds; provided. however, that
the Parity Reserve Amount may be reduced if, in the opinion of Bond Cowisel , the funding or
maintenance of it Jt the level oth er,.,ise determined pursuant to this definition will cause the
reserve account for such Parity Lien Bonds to exceed the amount pennitted by the Code to be
invested in higher yielding investments as a reasonabl y required reserve amount and replacement
fund.
"Participants" means an y broker-deiller, bank or othe r finan cial institution from time to
time for which OTC or another Depository holds the Bonds .
"Paying Age 11" means The Bartk of Cherry Cree k, N.A., in Denver , Colorado, or its
successor, which shall perfonn the function of payin g agent with respect to the Bonds.
"Paying Agent and Registrar Agreemenr" means the agrtc:ment dated as of the Dated
Dal:, between the City and the Paying Ag e nt/Bond Registrar, concerning the registration,
transfer, exchange and payment of the Bonds .
"Permitted Investments" means any lawful investment permitted for the investment of
funds of the City by the Charter and the Laws of the State .
"Person" means a corporation , firm, other body corporate, partnership, association or
individual and also includes an executor , administrator, trustee, receiver or other representative
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appointed according to law . •
'Preliminary Official Statemenr'' means the Preliminary Official Statement concerning
the Bonds and the City used in connection with the marketing of the Bonds.
"Principal Paym ent Dau" means any maturity date for a Bond as establ ished pursuant to
Section 3 hereof and any date on which a Bon d is called for prior rede mption pursuant to Section
4 hereof.
"Principal Subaccounr" means a subaccount of the Bond Account reaffirmed by the
provisions hereof for the purpose of pay ing the principal of and premium, if any , on the Bonds.
"Projecr" means the construction, acquisition and in stallation of Capital Improvements to
the Stonn Water System and such other improvements as detennined by the Council , including
all nece ssary or appropria te appurtenances, property rights and equipment.
"'Project Account" means the " torm Water Enterprise 2001 Bond Project Account,'
established by the provisions hereof for the purpose of paying the Project Costs.
"Project Costs" me.'UlS the City 's costs properly attributable to the Project or any part
thereof and permined by the provisions of the Acts. including without limitation : (a) the costs of
labor and materials of machinery , furnishings and equipment . and of the re storation of property
damaged or destro yed in connection with construction work : (b) administrative and general
overhead costs: (c, the costs of reimburs ing funds advanced by the ity in anticipation of •
reimbursement from Bond proceeds , including any intrafunJ or interfund loan: (d) the costs of
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• surveys, appraisals plans, designs, specifications and estimates; (e} the co sts of issuing the
Bonds; and (f) all other lawful costs as determined by the City Manager .
"Pro Rara Portion" means when used with respect to a required credit to the Pr..1cipal
ubaccount or the Interest Subaccount, the dollar amount derived by dividing th .c amount of
principal or interest to come due on the next principal or b tere st paymen t date by the number of
montllly credits required to be mace prior to such paymen1 date .
"Purchaser' means George K. Baum & Company, the original purchaser of the Bonds .
'Rating Agency· means Fitch IBCA., Moody 's Investors Service, Inc . or Standard &
Poo r's Ratings Serv ic es, a Division of The McGraw-Hill Companies, Inc .
"Record Dale" means the fifteenth day of the calendar month next precetling each
Interest Paymen t Date .
"Required Reserve Amount" means, as of an y date on which it is calculated, the least of
(a) I 0% of the principal amount of the Outstanding Bonds, (b) the maximum annual debt service
in any calendar year on the Outstanding Bonds or (c) 125% of the average annual debt service on
the Outstanding Bonds ; p;ovidcd, however that the Required Reserv e Amount may be reduced
if, in the opinion of Bond Counsel , the funding or maintenance of it at the level otherwise
determined pursuant co this definition will cause the Reserve Account to exceed the amount
permitted by the Code to be invested in higher yielding invesnnents as a reasonably required
• reserve amount and replacement fund .
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"Reserve Account" means a special ac coun t of the City des ignated as the "Storc1 Water
Enterprise 200 I Bond Reserve Account," created by this Ordinance for the purpos e of paying. if
necessary the principal of pre mium if any , and interest on the Bonds.
'Reserve Account Contract" me.ans a surety bond. insurance polic y, letter of credit,
investment agreement, investment contract or similar instrumeni
"Special Record Da te' means the record date for determining Bond ownership for
purpose s of paying defaulted interest, as such date ma y he determined purs uant to this
Ordinance .
"State" means the State ofColora o.
"Storm Water Enterprise Fund" mean .s the torm Water Fund of the City which accouncs
for the financial activity of the Storm Water Enterprise Fund.
"Storm Wat ('r System" means all of the City · s storm water facilities including without
limitation interests in real and personal property now 0\1lned or hereafter acquired whether
situated within or without tb e City t.oundaries and all present or future improvements
ex1ensions, enlargemencs , benermencs , replacementS and additions thereto .
"Storm Wa1er Enterprise " means the Storm Water Enterprise as established by City
Ordinance No . 20, Seri es 1993 , as said ordinance may be amended from time to time.
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"Subordinate Lien Bonds" means one or more series of additir.:nal bonds, notes , interim
sec uri ti es or other obligatio ns issued by the City purs 1ant to the Section hereo f entitled
'"Add iti onal Bo nd s," having d lien on the Net Revenue which 1s subordinate or junior to the lien
of the Bonds .
.. Tax l etter of lnsm1ctions" means the Tax Lener of In structions, dated the date on which
th e Bonds are originally issued and delivered to the City by Bond Co;.~.sel , as such instructions
may be superseded or amended in accordance with thei r term s.
ection 2. Authoriza tion . ln accordan ce with the Constitution of the State; the Acts ;
and all other laws of the State thereunt1, enabling, there shall be issued by the City , acting by and
through its Stonn Water En terprise . the "Stonn Water Enterprise Revenue Bonds , Series 2001 ,"
in the aggregate principal amount of $1,6 1 5,000 , for the purpose of paying the Project Cos ts.
The accomplishment of the Project is hereby authorized. app roved and ordered and it is hereby
determined that th .e Bo nds mature at such time not exceeding the estima te d life of the Project.
Section 3. Bond Details .
(a) Registertd Form, Denominations, Origin al Dated Date and N umbering.
The Bonds shall be iss ued as fully registered bonds, sh all be dated as oftbe Dated Date,
and shall be registered in the name s of the Persons identi fied in th e re gistration books
ma intained by the Paying Agent pursuant hereto . The Bonds shall be issued in
denominations of $5,0 00 in principal amount or any inte gral multiple thereof. The Bonds
shall be consecutively numbered, beginning with the number one, preceded by the Jetter
(b) Maturity Dates, Principal Amounts and Interest Rates. Th e Bonds shall
mature on December I of the yem and in the prin cipal amounts , and shali bear interest at
the rates per annum (calc ulated based on a 360-day year of twelve JO-day months) se t
forth in the Bond Purchase Agreeme nt. The City Co un cil hereby delegates 10 the
Director of Finance and Administrative Services the a uthority to detennine the C'ated
Date, the price at which the Bonds will be sold , the amo un t of princ ipal of the Bonds
maturing in any particular year and the rate of interes t on the Bonds . The maximum net
effecti ve interest rate authorized for this issue of Bonds is 7.50% per annum and the
actual net effective interest rate of the Bonds shall not exceed such maximum rate .
(c ) A ccrual and Dates of Payment of Interest. Inte rest on the Bonds shall accru e
at the rates establ ished pursuant to paragraph (b) of thi s Section, from the later of the
Dated Date or the latest Interest Pa yment Date (or in the case of defaulted intere st the
latest da te) to which inte rest has been paid in full and shall be payable on ea ch interest
Payme nt Date .
(d) Man11er a11d Form of Payment. Principal of each Bond shall be payab le to
the Owner thereof upon pr esentation and surrender of such Bond at the principal office of
the Paying Agent in the city identified in the de finit ion of Paying Agent in the Sec tion
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hereof entitled ·•Definitions " or at such other office of the Paying Agent desigroted by the •
Pa ying Agent for such purpose . In te rest on each Bond shall be payable by check or draft
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of the Paying Agent mailed on each Interest Payment Da te to the O er thereof as of the
close of business on the corresponding i\ecord Date; provided however. any such interest
not so timely paid or duly provided for shall cease to be payable to the person who is the
Owner thereof at the close of business on the Reco rd Date and shall be p yable 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 im~r st . Notice of the Special Record Date shall be given
to the Owners of the Bonds not less , ten (I 0) days prior thereto. by first-class mail to
each such Owner as shown on th ~ , gistra ti on books kept b. the Registrar. on a date
selected by the Paying Agent, stating the date of the Special Record Date and the date
fixed for the payment of such defaulted interest. Interest payable to any Owner a
provided in this paragraph may be paid by any other means agreed to by such Owner and
the Paying Agent that does not require the City to make mon ys available to the Paying
Agent earlier than otherwise required herewider or increas e 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 Uruted States of America .
(e) Book-Entry Registration . Notwithstan ding any other provision hereof, lhe
Bonds shall be delivered only in book-mtry fonn registered in the name of Cede & Co.,
as omince cf OTC, acting as securities depository of the Bonds and principal of and
interest on the Bonds shall be paid by wire transfer 10 OTC ; pro vided. however. if a1 any
time the Paying Agent determines, and notifies the Ci1y of its determination , chat OTC is
no longer able 10 act as , or is no longe r satisfactorily performing its duties as, securi1ies
depository for the Bonds , the Paying Agent may , at its discretion. either (i) designate a
substitute securities depository for OTC and rer eg ister the Bonds as directed by such
substitute securities depository or {ii) tenninate the book-entry registration system and
ren:gister th e Bonds in the names of the beneficial 0MleIS thereof provided to it by OTC .
either the City nor the Paying Agent shall have any liability to OTC , Cede & Co., any
substitute securities deposi tory, any Person in whose name the Bonds arc reregistered at
th e direction of any substitute sec urities depository any beneficial 0Mler of the Bonds or
any other Person for (A) any detennination made by the Paying .gent pursuant 10 the
proviso at the end of the immediately preced ing sentence or B) any a.ction taken to
implement such determinati on and the procedures related thereto that is taken pursuant to
any direction of or in reliance on any infonnation provided by DTC . Cede & Co., any
substitute securities depository or any Person in whose name the Bonds are reregistered.
Section 4. Prior Redemption .
a) Optional Redemption . The Bonds shall be subjecl to redemption at the
option of the City, in whole or in part, and if in part in such order of marurities as the City
shall detenn ine and by lot within a maturity on such dates as se1 fo rth in the Bond
Purchase Agreement, at a rede mpt ion price equal to the principal amount thereof(with no
redemption premium), plus accrued interest to the redemption date. The City Council
hereby delegates 10 the Director of Finance and Adm ini slTil tive ervices the authority 10
delermine tbe dates on which the Bonds shall be subj ect to optional redemption.
(b) Mandatory Sinking Fund Redemption . All or any principal amoun1 of
the Bonds may be subjecl 10 mandatory sinking fund redemption by lot on December I of
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the years and in the principal amounts spe£ified in the Bon d Purchase Agreemen t, al a
redemption price equal co the princi pal amount thereof (wi th no red emption premium),
plus accrued interest to the redempti on date. The City Council hereby delegates to the
Director of Finance and Administrative Services the authority to determine the principal
amounts and da,es on which the Bonds shall be subject to mandat ory sinki ng fund
redemption . At its option , to be exercised on or before the forty fifth day next p~eding
each sinking fund redemption date. the ity may (i) deliver to the Paying Agent for
cancellation of any Bonds with the same maturity date as the Bonds subject to such
sinking fund redemption and (i i) receiv e a credit in respect of its sinking fund redemption
obligation for any Bonds with the same maturity date as the Bonds subject to uch
sinking fund redemption whic h prior to such date have been redeemed (otherwise than
through the opera ti on of the sinking fund) and cancelled by the Paying Agent and not
theretofore applied as a credit against any sinking fund redemption obliga tion. Each
Bond so delivered or previously redeemed shall be credited by the Paying Agent at the
principal amount thereof to the obliga tion of the City on such sinking fund redemption
date , and the principal amount of Bonds to be red emed by operati?n of such sinking
fund on such dace shall be a:cordi ngl y reduced .
fr) Redemption Procedures . If less than all of the Bonds •;;ithin a maturity
te 10 r:: r~tlee med on any prior redemption date. the Bonds to be redeemed shall be
~le tcd by lot prior to the date fixed for redemption, in such manner as the Bond
Registrar shall determine . The Bonds sball be red eemed only in im grol multiples of
$5,000 . In the event a Bond is of a denomination larger th an $5,000, a portio n of such •
Bond may be re-:leemed, but only in the principal am wit of $5,000 or any integral
multip le thereof. Such Bond shall be treated for the purpose of redemption as that
number of Bon~ which results from dividing the principal amount of such Bond by
$5,000. In the event i portion of any Bond is redeemed, the Bond Registrar shall,
without charge to the Owner of such Bond , authenticate and deliver a replacement Bond
or Bonds for the unred1iemed portion thereof.
( ) Rede,.,,ptum Notice. Notice of any redemption of Bond shall be given by
the Paying Agent in the name of the City by sending a copy of such ootice by first-class ,
postage prepaid mail , nol less than 30 days prior to the re demption date, 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 part ) and th e redemption date . If any
Bond shall have been duly called for redemption and if. on or be fore the redemption date,
there shall have been deposited with the Paying Agent in accord ance with this Ordinance
funds sufficient to pay the redemption price of such Bond on th e redemption dale. then
such Bond shall become due and payable a1 such redemption date , and from and after
such date interest \\ill ease to accrue thereon . Failure to deliver any red emption notice
or an y defect in any redemption notice shall not ilffect the validity of the proceeding for
the redemption of Bonds with respect to which such failure or defect did n t occur . Any
Bond redeemed prior 10 its maturity by prior redempti on or otherw ise sha ll not be
reissued and shall be cancelled .
ection S. Form of Bond . Th e onds shall be in substantiall y the form se t forth in •
Appendix A hereto with such changes thereto , not inconsistent herewith as may be nec essary or
02-<mll.02 10
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de slmo le <l!1d ap;,roved by the officials of the City executing the sam1:. (whose manual or
fac simile si11 naru res thereon shall constitute conclusive evi dence of such app roval ). All
covenant.~, state men ts, represe ntat io ns and agreement s co nta ined in the Bond s are hereb y
approved and ado pte d as the co venant s, sta tements, representations and agreements of the City .
Although attached as and appendi x for the c:>nveni ence of the reader , Appendix A is an integral
part of this Ord i.ia nc e and is incorporated herein as if set forth in full in the body of th is
Ordi nance .
Sect ion 6. Exe cu tion , Authentica ti on a nd eli ery of Bon ds.
(a) Exec utio n . The Bonds shall be exec uted in the name and on behalf of the
City with the manual or facsimile signature of the Mayor, shall bear a manual or
facs imil e of the seal of the City and shall be ane sted by th e manual or fac simile signature
of the City Clerk both of wh om are here by auth orized and direc ted to p,,:pare and exec ute
the Bond s in accordance with the require ments hereof. Should any officer whose manuaJ
or facsim ile signature ap pears on the Bonds cease to be su<;h officer before delivery ilf
any Bond, suc h man ual or facsi mile signature shall ne ve:r'.hcless be vali d an d sufficient
fo r al I purposes .
(b) A ull,enticatio n . When the Bonds bave been duly executed the officers of
the City are authorized to , and sh all , de liver the Bonds to the Payi ng Agent for
auth enti cation. o Bond shall be secured by or entitled to the benefit of thls Ordinance ,
or shall he valid or obligato ry for any purpose, unless the certificate of authenticatio n of
the Paying Agent has bee n manually executed by an authorized signatory of the Paying
Age nt. The executed certificate of authentication of tbe Paying Agent upon any Bond
shall be co nclusi ve evid enc e, and the only competen t evi denc e, that such Bond has been
prope rly authenticated hereunder .
(c) Deli very . Upon the auther.tication of the Bonds , the Paying gent shall
deli ver the same in ac co rdance with the prov isions of the DTC Letter of Representations
and oth er procedures establi she d with the co nsent of DT C and ihe Pa yi ng Agent. Upon
re ceipt of the agreed purchase price of the Bonds in accordance with the Bo n:J Purchase
Agreement and issuance of the approving op inion of Bond Coun sel, the B0i1ds shal l be
released by DTC and the Pay ing Agent for credit to the Participants and the Beneficial
Owners.
Section 7. Registration, Exchange an d Tra nsfer 1f Bond s; Per on Treated as
Owners .
(a) RegistraJion . The Payin g Agent shall mai ntain reg is trati on books in
which the ownership, tran sfer and exchan ge of Bonds shall be recorded . The pe rso n in
whose nam e any Bond shall be re gistered on such re gistrat io n boo ks shall be deeme d to
be the ab solute own er the reo f for all purposes an d neith er th e City no r the P ying Agent
shall be affected by any no tice or other information to the contrary .
(b) Trans/tr arid Exchange. The Bonds may be transtem·d or exchanged, at
the princi pal office of tbe Paying Ag ent. at th e location iden tified iu the definition of
Ol-92.132.02 II
Paying Agent in the section hereof entitled "Definit ions," for a like aggregate principal •
amount of Bonds of other authorized denominations of the same maturity and interest
rate upon payment by the transferee of a transfer fee, any tax or governmental charge
required to be paid with respect to such transfer or exchange and any cost of printing
bonds in coMection there with. Upon surrender for transfer of any Bond, duly endorsed
for transfer or accompanied by an assignment duly executed by the Owner or his or her
attorney duly authorized :n writing , the City shnll execute and the Pa yi ng Agent shall
authenticate and deliver in the name of the transferee a new Bond .
(c) Limitations on Transfer . The ity and Paying Agent shat. not be
required to issue or transfer an y Bonds: (i) during a period beginning at the c:ose of
business on the Record Date and endiug at the opening of business on the first Busi;iess
Day following the ensuing interest payment date, or (ii) during the period beginning at
the opening of business on a date 45 days prior to the date of any redemption of Bonds
and encling at the opening of business on the first Business Day following the day on
which the applicable notice of redemption is mailed. The Paying Agent shall not be
required to transfer any Bonds selected or ca!Jed for redemption.
Section 8. Replacement of Lo t, Destroyed or tolen Bonds . If any Bond shall
become lost, apparently destroyed sto len or wrongfully taken, it may be replaced in the form and
tenor of the lo st, destroyed stolen or taken bond and th e City shall exec ute and the Paying Agent
shall authenticate and deliver a replacement Bond upon the Owner furnishing, IO the satisfaction
of th e Paying Agent: (a) proof of ownership (which shall be shown by the registration books of
the Paying Agent), (b) proof of loss, destruction or theft, (c) an indemnity to the City and the •
Paying Agent with respect to the Bond lost, destroyed or taken, and (d) payment of the cost of
preparing and executing the new bond or bonds .
ectioo 9. Tax C ovenants. For purposes of ensuring that the interest on the Bonds is
and remains excluded from gross income for federal income tax purposes, the City hereby
covenants and declares that:
(a) Prohibited Actions. The City will not use or pennit the use of any
proceeds of the Donds or any other funds of the City from whatever source derived ,
directly or indirectly , to acquire any securities or obligations and shall not take or permit
ro be taken any other action or actions , which would cause any Bond to be an "arbitrage
bond" with in the meaning of Section 148 of the Code. or would otherwise cause the
interest on any Bond to be includible in gross i11c-0me for federal incom<! taX purposes .
(b) Affirmative Action . The City will OL all limes do and perform all acts
permitted by law that are necessary in order to assure that interest paid by the City on the
Bonds shall not be includible in gross income for federal income tax purposes under the
Code or any other valid pro ision of law . fo particular, but without limitation, the City
represents, warranrs and covenants to comply with the following rules unle ss it receives
an opi nion f Bond Co un sel stating that such com pliance is no t nece ssary: (i) gross
proceeds of the Bonds and the 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; (ii) the •
Bonds are not and will not become directly or indirectly ' federally guaranteed;" and
02-92'32 02 12
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(iii) the City will timely file an Internal Revenue Se.rvice Fonn 8038-G with respect to
the Bonds, which s hall contain the information required 10 be filed pursuant 10
Section I 49(e) of the Code.
(c) Tax Lttrer of Instructions . The City wiU comply with the Tax Letter of
lnstructions delivered to it on the date of issuance of the Bonds. inc,uding but not limited
by the provisions of the Tax Letter of Instructions regarding the application and
investment of Bond proceeds, the use of the Project, the calculations, the deposits, the
disbursements. the investments and the retention of records described in the Tax Letter of
Instructions : provided that, in the event the Tax Letter of Instructions are s uperseded or
amended by new Tax Lener of Instructions c!mfted by , and accompanied by an opinion
of, Bond Counsel stating that the use of the new Tax Letter of Instructions will not cause
the inte rest on the Bonds to become includible in gross income for federal income tax
purposes, the City will thereafter comply with the new Tax Letter oflnstructions.
(d) Dt!lignation of Bonds a.s Qualified Tax-Exempt ObligcUions . The City
hereby designates the Bonds as qualified tax-exempt obligations within the meaning of
Section 265(b)(3) of the Code . The City covenants that the aggregate face amount of all
tax-exempt obligations issued by the City, to gether with governmental entities which
derive their issuing authority from the City or are subject to substantial control by the
City, shall not be more than$ I 0,000,000 during calendar year 2001. The City recognizes
that such tax-exempt obligations include notes , leases, loans and warrants, as well as
bonds. The City further recognizes th at 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 I 00% of any
otherwi se available interest deduction attributable to such institution's tax-exempt
holdings.
ection I 0. Creation of Fund and Accounts. There i$ hereby reaffinned the Stonn
Water Enterprise Fun d and then: is here by established the following accounts of the Stonn Water
Enterprise Fund. which shall be maintained by the City in accordance with the provisions of this
Ordinance:
(a) the Project Account;
(b the Bond Account within which there a.re established the Interest Su ba: · u;n and
the Principal Subaccount; and
c) the Reserve Account.
ectlon ll. Initial redir of Bond Proceeds. Immediately upon issuance of the
Bonds and the receipt of the proceeds thereof in accordance with the Bond Purchase Agreement,
the City shall make the following credits and appl uch amounts as a supplemental
appropriation of the City :
(a)
02-92531,02
to the Interest Subaccount the accrued interest on the Bonds from the Dated Date
to the date of issuance and capitalized interest on the Bonds , if any ;
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(b) to the Reserve Account the amount of the Required Reserve Amount; and
(c) to the Project Account, the remaining proceeds of the Bonds.
ection 12. Project Account . All moneys credited to the Project Account shall be
applied solely to the payment of the Project Costs. Excep t to the extent otherwise required by
the pr visions of the Section hereof entitled "Disposition and lnv(.stment of Proceeds; Tax
Covenants," interest income from the investment or re investment of moneys credited to the
Project Account s hall remain in and become part of the Project Account. Upon the
detennination of the City Manager that all Project Costs have been paid or are determinable, any
balance remaining in the Project Account (less any amounts necessary to pay Project Costs not
then due and owing) shall be credited to the Bond Account.
c tion 13. Security for Payment of the Bonds; Flow of Funds.
(a) Pledge of et Revenues. The Bonds shall constirute an irrevocable and
first lien upon the Net Revenue but not necessarily an exclusive such lien. The et
Revenue is hereby pledged to the payment of the Bonds.
(b) Flow of Funds. Immediately upon the issuance of the Bonds all Gross
•
Revenue then held by the City shall be credited to the Storm Water Enterprise Fund.
Thereafter, the City shall credit to the Stonn Water Enterprise Fund all Gross Revenue
immediately upon receipt. The City shall pay from the Storm Water Enterprise Fund all
Operation and Maintenance Expenses as they become due and payable. After such •
payment or the allocation of Gross Revenue to such payment, the City shall apply the Net
Revenue in the following order of priority :
02 -92.mOl
FIRST to the credit of the Interest SubaccounL the amounts required by
the Section hereof entitled "Bond Account," and to the credit of any other bond
account or subaccount hereafter established for the payment of interest on Parity
Lien Bonds issued in accordance with the Section hereof entitled "Additional
Bonds;'
SECO D, to the credit of the Principal ubaccount, the amounts required
by the Section hereof entitled "Bond Account,'' and 10 the credit of any other
bond account or subaccount hereafter established for the payment of the µrincipal
of. and premium if an. , on Parity Lien Bonds issued in accordance with the
ection hereof entitled J dditional Bonds;"
TH1RD. to th e credit of the Reserve Account, the amounts required by the
Section hereof entitled "Reserve Account" and to the credit of any olher account
hereafter established as a reserve account for Parity Lien Bonds is s ued in
accordance with the Section hereof ent itled " dditional Bonds; '
FO RTH , 10 the c redit of any othe r fund or accoun hereafter established
for the payment o the prin ipal of, premium if any. and ir , rest on Subordi nate •
Lien Bonds, including any sinking fund, reserve fund or similar fund or account
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established therefor , lhe amounts required by the ordinanc e or Olher enactrnen 1
authorizing issuance of the Subordinate Lien Bonds; and
FIFTH , to the credit of an y other fund or account as may be designated by
th e City, to be used for any lawful purpose. any moneys remaining in the Storm
Water Ente rprise Fund after the payments and accumulations set forth in FIRST
through FOURTII hereof.
(c) Bonds Do Not Constitute a Debt. All of the Bond s, together with the
interest thereon and any premium due in connection therewith , shall be payeble only out
of: (i) the Bond Account : or (i i) if necessary , the Re serve Acco unt. The Own ers may not
look to an y general or other fund of the City for the paymen t of the principa l of. premium
if any , and in terest on the Bonds except the funds and accou nts pledged the re to by this
Ordin an ce, an d the Bonds shall not co nstirute a debt or an indebtedness of the City within
the meanin g of any constitutional or statutory provision or lim itati on; nor shall the y be
considered or held to be ge neral obligations of the City.
Section 14. Bond Account.
(a) Use of Moneys in Bond Acco1111L Moneys in the Bond Account shall be
use d solely for the purpose of paying the principal of. premium if any, and interest on the
Bonds . On or before the last Business Day of the month preceding each Interest Payment
Date , th ere shall be depo sited with the Paying Agent an amount from the Interest
Subaccount which is sufficient to pay the intere st on the Bonds due on such Interest
Payment Date . On or before the last Business Day of I.he month preceding each Principal
Payme nt Date, there shall be deposited w;th the Paying Agent an amount from the
Principal Subaccount which is sufficient to '· y the principal of and premium , if any , due
on the Bonds on such Princ ipal Payment Date .
(b) Interest Subaccount. The Interest Subaccount shall be used to pay the
interest on Bonds . Upon delivery of the Bonds . the City shall credit to I.he Interest
Subaccount the amount re quired by the Section hereof entitled "Initial Credit of Bond
Proceeds ." On or before the last day of each month. commencing in the month next
succeeding the date of issuance of th e Bonds , the City shall credit to the In tere st
Subaccount., from the Net Rev enue and .my interest income to be credited to the Interest
Subaccount pursuant to I.he terms hereof, an amount equal to the Pro Rata Ponion of the
interest to come due on th e Bonds on the next succeeding ln cerest Paym ent Date .
(c) Principal Subaccount. The Principa l Subaccount shall be used to pay I.he
principal of and premium . if an y, on the Bonds . On or before the last day of each month .
commen cing in the month ne xt succeeding the date of issuance of the Bonds. the City
shall credit to the Princip al Subaccounc, from the Net Re ven ue and any interest income to
be credited to the Princ ipal Subacco unt pursuant to the terms he reof. an amount equ l to
the Pro Rata Ponion of the princ ipal coming due on the Bond s on the nex1 succeeding
Principal Pa mcnt Date .
Ol-9l.S3202 15
ei:tion 15. Reserve ccount .
(a) Use of Moneys in Reserve Account. Moneys in the Reserve Account
shall be used, if necessary, onl. 10 prevent a default in the payment of the princ ipal of,
premium if any , or interes1 on the Bonds, and !he Reserve Account is hereby pledged 10
the payment of the Bonds. In th e event the amoums credi1ed to the Bond ccount are
insufficient 10 pay !he principal of. premium if any , or interest on Bonds when due, the
City shall transfer from the Reser ve Accoun1 to the appropriate subaccount or
suba counts of 1he Bond Accoum an amount which. when combined with moneys in the
subaccount or subaccounts, will be sufficient to make such payments when due .
(b) Fundi11g and Main tena nce of Re quired Reserv e AmounL The City shall.
upon delivery of the Bonds, credit to lhe Reserve ccount the amount required by the
Section hereof entitled "Initial Credit of Bond Proceeds." The Reserve Account shall be
maintained in the amount of the Required Reserve Amount until such time as the amou'lt
credited thereto , when combined with mon ys in the Bond Account will be sufficient to
pay the principal of, premium if an , and interest on all of the Bonds , at which time such
moneys may be applied for such purpose . If at any time the amount of the Reserve
Account is less than the Required Reserve Amount, then the City shall deposi t 10 the
Reserve Acco ur.t from the et Revenue , amounts sufficient to bring the amount credited
to the ~eserve Account to the Required Reserve Amount. Such deposits shall be made as
soon as possible after such use , bu1 in accordance with and subject to the limitations of
the ection hereof entitled " ecurity for Payment of Bonds: Flow of Funds .''
The Required Reserve Amount shall be funded and maintained by any one of or
any combination of (i) cash ; (ii) Permitted Investments ; and (iii) a Reserve Account
Contract which provides for payments when and as required for purposes of the Reserve
Accoun and is issued by an obligor whose obligations such as the Reserve Account
C')ntract are either (A) rated by a Rating Age ncy as investment grade or (B) if a rating
has been obtained on the Bonds or any Parity Lien Bonds wboi;e obligations are rat d by
each Rating Agency that then maintains a rating on the Bonds or any Parity Lien Bonds
in a category (or comparable classification) equal to or higher than the category if any. in
which the Bonds or any Parity Lien Bonds are rated . A Reserve Account Contract shall
satisfy the Required Reserve Amount by che amount payable to the City pursuant to such
conuact.
(c) Va luat io n and In te res t Income. Money s credited to the Reserve Account
may be invested or deposited in securities or obligations which are Permitted
Investments : howeve r, such investments shall be valued at fair mar ket value and
marked-to-market at lease once per year . Ad ditionally. the investment of money s
credited to the Reserve Account shall be subject to the covenants and provision s of the
Section hereof entitled "Disposition and Investment of Proceeds ; Tax Covenants."
Except to the extent otherwise required by such ection, so long as the amount of the
Reserve Account is equal to the Required Reserve Amount. all interest in come from the
investment or reinvestment of moneys credit ed to the Reserve Account shall be credited
to the lnteres1 Subaccount and 'or the Pri ncipal ubaccou nt. as may be determined by the
City-pro vided that if the amount of the Reserve ccoum is less than the Re q uired
02-9l.lll.02 16
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Reserve Amount, then such interest income shall be ctedited to the Reserve Account .
The amount on deposit to the Reserve Account shall never exceed the amount of the
Required Reserve AmounL
ection 16 . Investments . Moneys deposited in the Bond Account and the Project
Ac count and any moneys hel d by the Paying Agent with respect to the Bonds. shall be invested
in Pe:rmined Investments. provided that rhe investment of such moneys shall be subject to any
ap plicable resrrictions set forth in the Tax Letter of Instructions and in the uTa.x ompliance
Certificine " or similar certificate delivered by the Ciiy in connec ti on with the issuanc e 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 . Unless otherwise provided herein , all
interest income from the investment or reinvescment of moneys credited to any account or
subaccount established herein shall rem ai n in and become part of such account or subaccount.
Section 17. Maintenance of Rate and Coverage . The City hereby covenants that it
will establish , maintain, enforc e and collect rates , fees and charges for services furnished by or
the use of the Stonn Water System to create Gross Revenue each Fiscal Year sufficient to pay
Operation and Maintenance Expenses and to create Net Revenue in an amount : (a) equal to not
less than 115% of the amount necessary to pay when due the principal of and interest on the
Bonds and any Parity Lien Bonds coming due during such Fiscal Year; and (b) to make up any
deficiencies in the Reserve Account and any reserve account established for Parity Lien Bonds .
In the event that the Gross Revenue at any time is not sufficient to make such payments the City
shall increase such rates , fees and charges to an extent which will ensure the payments and
accumulations required by this Ordinance.
Section 18. Additional Covenants and Agreements . The City hereby further
irrevocab ly covenan..s ano agrees with each and every Owner that so long as any of the Bonds
remai n Out~tanding:
(a) Compuent Management. The City shall employ competent mar.agement
pe rso nnel for the Storm Water System and will continue to operat.e and manage the Storm
Water System in an efficient and economical manner in accordance with all applicable
~aws, rules and re gulations .
(b) Maintenance of Records and Accounts. The City shall keep proper
books of reco rd and accounts showing complete and correct entries of a.II transactions
relating to the funds and accounts referred to herein and in such manner that the Gross
Revenue and the Net Revenue may at all es be readily and accurately determined .
(c) Alienation of Property . e City will not sell or alienate any of the
propeny constituting an y part or all of the Storm Water ystem in any manner or to any
extent as might reduce the security provided for the payment of the Bonds. but the City
may sell any rt ion of suc h property which shall have been replaced by other si milar
property of at least eq ual val ue. or wh ich shall cease to be necessary for the efficient
operation of the Storm Water Sys tem · pro vi ded ho \,e ver , that the proceeds of an. such
sale of propeny shall be included as part of the Gros~ r-cnue .
Ol-92.!ll C~ 17
(d) Payment for Use and Services. The City will promplly render bills for •
services furnished by or the use of the Storm Water System, shail use all legal means to
assure prompt payment thereof. shall take such action as may be necessary to make
delinquent rates, fees and charges of the tonn Water System a lien upon the real
property served.
(e) Audits. At least once a year in the time and manner provided by law, the
City will cause an a udit to be performed of the records relating to the revenues and
expenditures of th e Storm Water System. Such audit may be made pan 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 rime and manm•r provided by law, the City will cause
a budget to be prepared and adopted . Copies of the budget ru1d the audit will be filed and
recorded in the places, time and manner provided by law.
(f) Insurance. The City will carry such forms of insurance on insurable
Storm Water System property as would ordinarily be carried by util ities having s.imilar
properties of equal value, such insurance being in such amo unts as will protect the Storm
Water System and its operation. In the event of any loss or damage to the Storm Water
System, or in the event part or all of the Storm Water System is taken by the exercise of a
power of eminent domain, the insurance proceeds or the condemnation award shall be
used for restoring, replacing or repairing the property lost , damaged or taken, and the
remainder thereof, if any, shall be considered as Gross Revenue; provided however, that
if the City Council determines that the operation of the Storm Water System and the
security for the Bonds will not be adversely affected thereby the City Council may •
determine not to restore. replace or repair the property lost, damaged or taken and all of
the insurance proceeds or condemnation award shall be considered as Gross Revenue .
(g ) Surety Bonds. Each District official or other person having custody of
any funds derived from the operation of the Storm Water System, or responsible for the
handling of such funds., shall be fully bonded at all times , which bond shall be
conditioned upon the proper application of said funds .
(h) Enterprise StahlS. The City has established, and cove nants 10 continue 10
maintain, the Storm Water System as an '·enterprise" within the meanin g of Article X,
ection 20 of the Colorado Constitution , and as a '·water activity enterprise" within the
meaning of Title 37, Article 45 .1, C .R.S .; provided , however, after calendar year 2001
the City may disqualify the Water ystem as an "enterprise" in any year in wnich said
disqualification does not materially. adversely affect the e nforceabili ty of the covenants
m de pursuant 10 this O rd inance . In the event the Water System is disqualified as an
enterprise and th\! enforceability of the covenants made pursuant to this Ordinance are
materially. adversely ffected , the City covenants to immediately take all actions
nece ary to (i) qualify the Storm Water System as an enterprise within the meaning of
Article X, Section 20 of the Colorado Constitution and ii) permit the enforcement of the
covenants made herein .
(i) Protection of Securiry. The City , its offi ers, agents and employees, shall •
not take any action in such manner or to such extent as might prejudice the security fo r
0l-92$12-02 18
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the payment of the principal of and interest on the Bonds and any 0th.er securities payable
from the Net Revenue according to the terms thereof. No contract shall be entered into
nor any other action taken by which the rights of the Owners might be prejudicially and
materially impaired or diminished.
Section 19. Additiona l Bond .
(a) No Superior Lie n Bo n ds. o bonds , notes. interim securities or other
obligations shall be issued payable from the et Re venue and having a lien thereon
which is superior to the lien of the Bonds .
(b) Pa rity Lien Bonds. The City may issue Parity Lien Bonds if:
(i) As of the date of issuance of the Pari ty Lien Bonds the City is in
si:bstantial compliance with all of ;he covenants of this Ordinance;
(ii) As of the date of issuance of the Parity Lien Bonds the City is
current in the accumulation of alJ amounts required to be then accumulated in the
Bond Account and the Reserve Account ; and
(iii) For any 12 -month period during the 18-month period immediately
preceding the date of issuance of such Parity Lien Bond s, the et Revenue is
sufficient to pay an amount rep resenting not less than 150% of the Combined
Maximum Annual Principal and Interes t Requiremen ts for the Outstandi ng
Bonds Outstand ing Parity Lien Bond s if any, and the Parity Li,in Bonds
proposed to be issued. For purposes of such test , if there has been ado pted a
schedule of increases in rates , fees and charges during th e preceding 18-mo nth
period , the Net Revenue may be inc reased fo r those months in which such
increase was not in effect for the 12-month period in which such calculation is
made by adding to the actual revenues for such period an estimated sum equal to
100% of the estimated increase in revenues which would have been realized
during said period had such increase beca in effect for the enti.rc 12-moath period
(the requirement set forth in this subparagraph (iii) shall aot apply to any Parity
Lien Bonds issued for the purpose of refunding less thaa all of the Outstanding
Bonds); and
(iv) The ordinance, indenture or other document providing for the
issua,:~e of the Parity Lien Bonds must provide for a reserve account, which is
establ:shed m the amount of the Parity Reserve Amount, and a bond account for
the Parity Lien Bond s· such accounts must be established and maintained on
substantially the same terms and contain substantially the same provisions as set
forth in thi s Ordinance for the Reserve Account and the Boad Account.
respectively .
A written certificate by the May or (or other Cit offa:ial or employee designated
in writing by the Mayor) that the conditions set forth in paragraphs (i) and (ii) above vc
been met, and a written certificate by a Certified Public Accountant or Consulting
Engineer that the condition set fonh in paragraph (iii) above has been met , shall
0l-92532 .02 19
conclusively detennine that such conditions have been met in accordance with the tenns
hereof.
(c) Subordinate lien Bonds. So iong as no Event of D fa ult shall have
occurred and be continuing, nothing llerein shall prevent the City from issuing
Subordinate Lien Bonds .
ution ZO. De feasance. When all principal interest ant: premiums , if any , in
connection with a Bond has been duly paid , the pledge and lien and all M1g'ltions of the City
hereunder shall thereby be discharge:! with respect to said Bond and 1hr Bi-::1 Jhal l no longer be
deemed o Outstanding . There shall be deemed to be such due payn1tn t whe n the City has
placed in escrow anc' in trust with a commercial bank located within or without the State of
Colorado , and exercising trust powers , an amount sufficient (including the known minimum
yield from Defeasance Securities in which such amount may be initially invested) to meet all
requirements of principal, interest and premiums , if any , as the sam.: become due lo their final
maturities or upon designated prior redemption dates . The Defeasance Securities shall becor,,e
due at or prior to the respec tive times on which the proceeds thereof shall be needed . •r.
accordance with a schedule established and agreed upon between the City and such bank at th ·
time of the creation of the escrow , or the Defeasance Securities shall be subject to redemption i,•
the option of the holders thereof to as s ure such availability as so need ed to meet such schedule.
The sufficiency of the escrow shall be detennined by a Certified Public Accountant.
ectioo Zl. Even t of Defa ul t. 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 City when due ;
(b) payment of the interest on any Bond is not made by the City when du ;
(c) the City defaults in the perfonnance of any other of its covenants in this
Ordinance. and such default contin ues for 30 days after writte n notice specifying such
default and requiring the same to be remedied is given to the City by the Owners of 25%
in aggregate principal amount of the Bonds then Outstanding; or
(d) the City files a petition under the fede ra l bankruptcy laws or other
applicable bankruptcy laws seeking to adjust the obligations represented by th e Bonds .
ec rio o 22. Re med ies For Events of Defa ul t. Upon the occurrence and continuance
of an Event of Default, the Owner of any Bond, or a trustee therefor, may protect and enforce the
rights of any Owner by proper legal or equitable remed y deemed most effectual including
mandamus, specific perfonnance of any covenants , injunctive rel ief or requiring the Council to
act as if it were the trustee of an express trust. or any combination of such remedies . All
proceeding s shal l be maintained for the equal benefit and prot ction of aJI Owners . Any receiver
appointed to protect the rights of Owners may take possession of and operate and maintain the
Storm Water System in the same manner as the Ciiy itself might do . The failure of any Owner to
proceed doe s not relieve the Ciiy or any person of any liability for failure to perform any duty
0l•9UJ2.02 20
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hereunder . Th e foregoing righ are in addition to an y other right, and the exerc ise of any right
by any Owner shall not be deemed a waiver of an y other right.
~lion 23. Permitted Amendments to Bond Ordinance . Th e City may without the
consent of or notice to the Owners, adopt amendmen ts or supplements to this Ordi• ·nee, which
amendments or supplements sha.11 th ereafter form a part hereof, for any one < ·· r! of the
following purposes :
.(a) to cure any amb iguity , to cure . corre ct or supplement any fo rmal de ;'¥c t or
omission or inconsi s1em provis ion contained in this Ordinance , to mak r ·, l \' pro vision
necessary or desirable due to a chan ge in law , to make any provisions wi :.n r·:r· ct to
matters arising under this Ord in.ance , or to make any provi ions for any other i,.upose if
such provisions are necessary or desirable and do not materially adversel y affect the
interests of the Owners of the Bonds ;
(b) to subje ct to this Ordinance or pledge to the pa yment of the Bonds
additi onal revenues, propcnies or coll ateral ; and
(c ) to grant or confer upon the Owners any additional right s, remedies,
powers or au · J rity that may be lawfully granted to or conferred upon the Owners .
Section 24. Amendments Requiring Consent of Owners . Except for amen<latory or
supplemental ordinances adopted pursuant to th e Section hereof entitled "Pennined Amendments
to Bond Ordinance ," the Owners of not less than two -third s in aggregate principal amount of the
Bonds then Outstanding shall have the right, from time to time , to consent to and approve the
adoption by the City of such ordinances amendatory or supplemental hereto as shall be deemed
necessary or desirable by the City for the purpose of n, ><lifying , altering, amending , acH ing to or
rescinding in any panicular, any of the terms or provisions contained in thi s Ordinance ;
provided however , that without the consent of the Own ers of al l the Bonds affected thereby,
nothing he rein coutained shall permit o· be construed as perm it mg :
(a) a change in the terms of th e matur ity of an y Bo nd , in the principal amount
of an y Bond or the rate of interest thereon . or in the te s of prior redemption of any
Bond ;
(b) an impa irm ent of the right of 1h r 0 wners o inst itut e s uit for the
enforcement of any payment of the principal of, , if an y, · ri terest on the Bonds
when due ;
(c)
Bonds ;
the cre:nion of a li en upon the et Re venue rankin g prior to th e li en of the
(d ) a pri vile ge or pri ori ty of an y Bond or any pr emium or int erest pay me nt
over an y oth er Bond or prem ium or intere st payment; or
(e) a redu ction in the pe rc nta ge in principal amount of th e Bonds the consent
o f whose Own ers is requ ire d for any s uch am endat ory or supplemen ta l ordinance .
21
lfat any time the City shall desire to adopt an amendatory or supplemental ordinance for
an y o the purposes of this Section, the City hall cause notice of the proposed adoption of such
amendatory or supplemental ordinance to be given by mailing such notice by certified or
registered first-cl as~ mail to the Purchaser and to each Own~r of a Bond to the address shown on
th r gistration book!l of the Bond Registrar, at le:i.st 30 days prior lo the proposed date of
adoption of any such amendatory or supplemental ordinance . Such notice shall briefly set fonh
the na ure of the proposed amendatory or supplemental ordinance and shall state that copies
there of are on tile al the offices of the City or some oth r suitable location for in.,pection by all
Owners . :f. within 60 days or such longer period as shall be prescribed by the City following the
gi.,,ing of such notice , the Owners of not less than the required percentage in aggregate principal
amount of the Bo nds t en Outstanding at the time of the execution of any such amendatory or
supplemental ordin: 1ce sh all have consented to and approved the execution thereof as herein
provided, n O r of any Bond shall have any right to object to any of the tenns and provisions
contained therein, or the operation thereof, or in any manner to question the propriety of the
adoption and effectiveness thereof, or to enjoin or restrain the City from adopting the same or
from taking any action pursuant to the provis ions thereof.
Section 25 . Effec t of Amendment . Upon the execu tion of any amendatory or
supplemental or dinance pursuant to this Ordinance. th.is Ordinance shall be deemed to be
modified and ame ded in accordance therewith. and the respective rights , duties and obligations
under this Ordinance of the City , the Bond Registrar, the Paying Agent and all Owners of Bonds
then Outstanding shall thereafter be detennined, exercised and enfo rced hereunder , subject in all
respects to such modifications and amendments .
ectioo 26. Re mo val or Re ignatlon of Bo nd Re gistrar or P ay in g Ag ent ;
·uc ce sors . The Paying Agen t and Bon d Registrar may resign, or be removed by the City at any
time with or without cause . In the event of the removal or resignatio n of the Bond Registrar or
Paying Agent. the City shal l appoint a succ sso r as soon thereafter as may be practicab le, and in
such event shall give written notice thereoft ch Owner b mailing to the addresses shown on
the regi•ttation books for the Bonds. Any successor Paying Age nt shall : be a trust company or
bank in goo1 standing located in or incorporated under the law:; of the State; be duly authorized
to exe:·cise trust powers; be subject to examination by a federal or state authority ; and maintain a
reponed ca pital and surplus ofnot les s than $10 ,000.000 .
ection 27 . Autho rization lo E xecute Documents. The Mayor (or other City official
or employee designated in writing by the Mayor) shall , and is hereby authorized and directed to
take all actions necessary or appropriate to effectuate the provis ions of this Ordinance including
but not limited to , execution of such agreem ms, certificates and affida its as may be reasonably
req uired by the Purchaser . For a period of sixty days follo ing the adoption of this OrdinaJ1ce ,
the Director of Fi.nance and dmini strative Services is authorized to execute the Bond Purchase
Agreement. which shall l,,: in substantially the fom1 presented to the City at this meeting and
shall be completed in acc ordance with the terms of this Ordinance . The execution of the Bond
Purchase Agreement by th e Director of Finance and Administr ati ve Services and the execution
of the Mayor (or the Mayor 's desi gnee ) of an y docum ent authorized herein shall be conclusive
proof of the approval by the City of the tenns th ereof.
0 2-92))2.02 22
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ection 28. Official Statement . The Preliminary Official Statement is hereby
authorized and approved . The Preliminary Official Statement is hereby deemed by the Council
to be final as of its date within the meaning of Rule 15 c2-12(b)(J) of the .S. Securi ties and
Exchange Commission . The Council hereby authorizes the preparation and distribution of a final
Official Statement in conjunction with an offer of the Bonds to the public . The Official
Statement shall contain such corrections and a ,rnional or updated information so that it will not
contain any untrue statement of material fact or omi to state a material fact necessary in order
to make the statements made therein, in light of the circumstances under which they were made.
not misleading . The Mayor is h reby authorized to execute copies of the Official Statem en1 on
behalf of the City .
ect io n 29. Ho lid ays . lf the date for making any payment or performing any acrion
hereunder shall be a legal ho liday or a day on which the principal office of the Paying Ag .:-nt or
Bond Registrar is authorized or required by law to remain closed, such payment may be made 'lr
act performed on the next succeeding day which is not a legal holiday or a day on which the
principal office of the Paying Agent or Bond RegiStrar is authorized or required by law to remain
closed .
ecti on 30. Limitatio n or ctio ns. ln accordance with Section 11-57-212 , Colorado
Revised Statutes, no legal or equita bl e action an be brought with respect to any legislative acts
or proceedings in connection with the authoriz.ation or issuance of the Bonds more than 30 days
after the issuance or authorization of such securities , whichever occurs later.
• Section 31. Ra tifica tion and Approv al of Prior Action s. All actions heretofore
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taken by the officers of the City and the members of th e City Council , not inconsistent wi th the
provisions of this Ordinance, relating to the authorization. sale, issuance and delivery of the
Bonds. are hereby ratified, approved an d confirmed .
ction 32 . Ord inance lrrepe,,a la ble. After any of the Bonds have been issued this
Ordinance shall constitute a co ntract between the Owners and the City , and shall be and remain
irrepealable until the Bon an the interest accruing thereon shall have been fully paid, satisfied
and discharged , as herein pro vi ded .
ec tion 33. Repea ler. All orders , bylaws an d ordinances of the City or parts thereof,
inconsistent or in conflict with this Ordinance , are hereby repealed to the extent only of such
inconsistency or conflict.
ection 34 . enrahility . If any section , paragraph, lause or provision of this
Ordinance shall for any reason be held to be invalid or une r forceable , the invalidity or
unenforceability of such section. paragraph. cla us e or provisio r shall not affect any of the
remaining provisions of thi s Ordinance , the intent he ing that the same are severable .
Sec tion 35 . Effec tive Da te. This Ordinance shall take effect thirty day s after
public,ation following final passage .
02-92.'31.02 23
Inti 11.:c d, read in full, and pBSSed on first reading, on the 6th day of August. 2001
Pub 's be,? u J Bill for an Ordinance on the 10th day of August. 2001.
F-tau !:,y title and pa don final reading on the 20th day of August, 2001 .
Publiabed by title as Ordinance No .~ Series of 2001, on the 24th day of August, 2001.
I, Loucrishia A. Ellis , City Clerk of the City of Englewood, Colorado , hen-by certify that the above
and foregoing j,U true copy of the Ordinance passed on final re · g and p ubliahed by 'tie ea
Ordinance No. "Ip Series of 200 I
02-92$32 02 24
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o.R-__ _
Jntere11t Rate
APPE DIXA
(FORM OF BONDI
(Front of Bond]
UNITED STATES OF AMERICA
TATE OF COLORADO
CITY OF E GLEWOOD
Acting By and Through Its
TORM ATER ENTERPRISE
STORM WATER TERPRISE REVENUE BOND
SERIES2001
Maturity Date
December I, __
Date,J Date
__,2001
CUSJP
REGISTERED OWNER: ___________________ _
PRJNC[PAL AMOUNT : ________________ DOLLARS
City of Englewood, Colorado a duly org jzed and validly ex ':i1ing City and mwricipal
corporation of lhe State of Colorado , acting by and through the Storm mer Enterprise (the
"City") fo r value received , hereby promises to pay, solely out of the special accounts hereinafter
designated bur not otherwise , to the r,=gistered owner named above , or regj.,rered assigns, on the
maturity date specified above or on the date of prior redemption , the prin ci pal amount specified
above. In like manner the City promises to pay interest on such principal amow1t (computed on
the basis of a 360-day year of twelve 30-day months) from the interest parnent date ne xt
preceding the date of registration and authentication of this Bond, unless this 8 'Jnd is aegistered
and authenticated prior to December I, 200 I, in which event this Bond shall oear interest from
the Dated Date specified above, at the interest rate per annum specified above , payable
semiannwtl ly on June I and December I each year. commencing on December l , 2001 , until the
principlll amount is paid at marurity or upon prior redemption . The principal of this Bond and
premium. if an • are payable in lawful money of the Uni ted States of Ameri ·.J to the registered
owner hereof upon maturity or prior redemption and presentation at the principal office of The
Bank of Cherry Creek, N.A .. in Denver, Colorado , or its successor . as Paying Agent.
Payment of each installment f interest shall be made to the registered owner hereof
who name shall appear on the registration books of the Cicy maintained by or on behalf of the
City by The Bank of Cberry Creek, N.A. in Denver, Colorado, or its successor, as Bond
Registrar , at the close of business on the fifl"Cnth day of the calendar month next pl'l!ceding eacb
02-9lll2.0l A-1
interest payment date (the "Record Date"), and shall be paid by check or draft of the Paying •
Agent mailed on or before the interest payment date to such rcg .istered owner at his addres s as it
appears on such reg istration books . The Paying Agent may make pa ymen ts of interest on any
Bond by such alternative means as may be mutually agree d to between the reg istered owner of
such Bond an cl the Payin g Agent, as provided in the ordinance authorizing the iss uance of this
Bond (the "Bond Ordinance"). Any such interest not so timely paid or duly pro vided for shall
cease to be pa able to the person who is the registered owner hereof at the close of business on
the Record Date and st.all be payable to the person who is the registered owner he reof at the
close of business on a spec ial record date (the " pe ci aJ Record Date ") established for the
payment of any defaulted interest . Notice of the Special Record Date and the date fixed for the
payment of defaulted intere st shall be given by first-class mail to the registered owner hereof as
shown on the registration book s on a date se lected by th e Bond Registrar .
If the date for making any payment or performing any action shall be a legal holida y or a
day on which the principal office of the Paying Agent or Bond Registrar is authorized or req ired
by law to remain closed such payment may be made or act perfo cd on the next succeeding
day which is not a legal holiday or a day on which the principal office of the Paying Agent or
Bond Registrar is authorized or required by law to remain closed.
This Bond is one of a series aggregating $1,675,000 par value , all of like date , tenor and
effect except as to number , principal amount, interest rate and date of maturity , issued fur the
purpose of paying the costs of providing certain Storm Water Enterprise facilities and
improvements, by virtue of and in full conformity with the Constitution of the State of Colorado · •
the City Charter, Chapter 5 to Title 12 of the Englewood Municipal Code; Title 37 , Article 45 .1,
C.R.S .; Title 11 , Article 57, Part 2, C.R.S .; and all other laws of the State of Colorado thereunto
enab lin g, and pursuant to the duly adopted Bond Ordinance. uch recital shall conclusively
impart full compliance with alJ of the pr.,visioos of said statutes . and this Bond iss ue d containing
such recital is incomest.able for any cause whatsoever after its delivery for value. It is hereby
recited , certified and warranted that all of the requirements of law have been fully complied with
by the proper officers in issuing this Bond.
The prin-.i pal of, premium if any, and inte rest on this Bond are payable only out of: (a) a
special account designated as the "S torm Water Enterprise 2001 Bond Account,'' into which the
City covenants and agrees to deposit from the revenues derived from the operation of the water
facili tie s comprising th torm Wat .er Enterprise after deduction of operations and maintenan e
costs (the ' et Re enue"), amounts sufficient to pay the principal of and interest on the Bonds
when the same become due and payable ; and (b) if necessary a special account designated as the
"S torm Water Enterprise 2001 Bond Reserve Account, .. all as more particularly set forth in the
Bond Ordinance . The Bonds shall constitute an irrevocable and first lien upon the Net Revcnu ,
bu• not necessarily an exclusive such lien . Subject to expressed conditio ns, obligations in
a ition to the Bonds of this issue may be issued and mad e payable from the et Revenue
having a lien thereon subordinate and junior to the lien of the Bonds of th.i s issue or, subject to
adwtional expressed conditions . having a lien on the , et Revenue on a parity with 1h e lien of lhe
Bonds of this issue. in accordance with the provis ions of the Bond Ordinance.
It is hereby recited , certified and warranted that for the paymem of this Bond, the City •
hns created and will maintain the special accowits referred 10 above, and will deposit therein out
02-923]2 02 A-2
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of the Net Revenue the amounts specified in the Bond OrdillllDCe, and out of such accounts, as an
irrevocable charge thereon, will pay the principal of, premium if any, and interest on this Bond in
the manner provided by the Bond Ordinance.
THIS BOND DOES OT CONSTITUTE A DEBT OR INDEBTEDNESS OF THE
CITY WITHIN THE MEAN! G OF A Y CONSTITUTIONAL OR STATUTORY
PROVJSIO OR LIMITATION, AND SHALL OT BE CONSIDERED OR HELD TO BE A
GENERAL OBLlGATION OF TilE CITY .
Reference is hereby made to the Bond Ordinan e for an additional description of the
nature and extent of the ecurity for the Bonds, the funds and revenues pledged to the payment
thereof, the rights and remedies of the registered owners of the Bonds , the manner in which the
Bond Ordinance may be amended and the other tenns and conditions upon which the Bonds are
issued , copies of which are on file for public inspection at the office of the City Clerk.
[Redemption provisions Fron , ":-~lion 4 to be reproduced in this place .]
The Bonds will be redeemed only in integral multiples ofSS,000. In the event a Bond is
of a denomination larger than SS ,000, a portion of such Bond ma y be redeemed , but only in the
principal amount of SS ,000 or any integral multiple thereof. Such Bond will be treated for the
purposes of re emption as that number of Bonds which resul ts from dividing the principal
amount of such Bond by $5,000. In the event a portion o f this Bond is rr;>,deemed, the Bond
Registrar shall , without charge to the registered owner of this Bond, authe ticate and deliver a
replacement Bond or Bon ds for the wiredeemed portion.
Notice of prior redemption shall be given by mailing a copy of the redemption notice, not
less than 30 days prior to the date fixed for redemption , to the registered owne r of this Bond at
the address shown on the registration books maintained by the Bond Registrar, in the manner set
forth in the Bond Ordinance. All Bonds called for redemption will ceas e to bear interest after the
specified redemption date, provided funds for their edemption are on deposit at the place of
payment at that time.
The City and Bond Registrar shall not be required to issue or transfer any Bonds :
(a) during a period beginni ng at the close of business on the Record Date and ending at the
opening of business on the first business day following the ensuing interest payment date, ri r
(b) during the period ginning at the open.ing of business on a date 45 days prior to the date of
any redemption of Bonds and ending at the opening of business on the first business day
following the day on which the appl.icable notice of redemption is mailed. The Bond Registrar
shall not t e required to transfer any Bonds selected or ~..ailed fo r redem ption, in whol e or in part .
The City, the Paying Agent and the Bond Registrar may deem and treat the registered
owner of this Bond as the absolut owner hereof for all purposes (whether or not thi s Bond shall
be overdue ). and any noti ce to the contrary shall not be binding upon the City. the Paying gent
or the Bond Registrar .
This Bond may be exchanged at the principal office of the Bond Registrar for a like
aggregate principal amount of Bond s of the same maturity of other authorized denominations.
This Bond is transferable by the registered owne r hereof in person or by his attorney duly
DM1.ll2D2 A-3
authorized in writing , at the principal office of the Bond Re i trllt, but only in the manner,
subject to the limitations . and upon payment of the charges provided in the Bond Ordinance and
upon surre u;:r Wld cancellation of this Bond . This Bon<l ma be transferred upon the
registration books upon ddivery to the Bond Regi strar of thi s Bond , accompanied by a wrinen
instrument or instrumer,1s of transfer in form ari with gu ty of signature satisfactory to the
Bond Registrar . d1..:J ; • ,..l.,• ed by the owner of th is Bond or hi s ::momey-in-fact or legal
represen ative, con iiung written instructions as to the details of the transfer of the Bond, along
with the social urity number or federal employer identification number of such transferee . In
the event of the transfer of this Bond, the Bond Reg is trar shall enter the cransfer of ownership in
the registration books and shall authenticate and deliver in the name of the transferee or
transferees a new fully regist red Bond or Bonds of au1horized denominations of the same
maturity and interest rate for the aggregate principal amount which th e registered owner is
entitled to receive at the earliest practicable time. The Bond Registrar shall charge the owner of
thi s Bond for every such transfer or ex change an amount sufficient to reim urse it for its
reasonable fees and for any tax or other governmental charge required to be paid with respect to
such transfer or exchange .
This Bond shall not be valid or become oblig to ry for any purpose or be entitled to any
security or benefit under the authorizing Bond Ordinance until the certificate of authentic!ltion
hereon shall have been signed by thr Bond f<eg is trar.
IN TESTIMONY WHEREOF the City Council of the City of Englewood has caused this
Bond to be signed by the facsim ile signarure of the Mayor , sealed with a facsimile of the seal of
the City, and attested by the facsimile signature of !he Clerk thereof, all as of the D ted Date set
fonh at the beginning of this Bond.
[Facsimile Seal]
Attested :
By [Facsimile Signature]
City Clerk
CITY OF ENGLEWOOD, COLORADO
By (Facsimile Signature]
Mayor
CERTIFICATEOF UTHENTICATIO
This Bond is one of the Bonds of the issue described in the within mentioned Bond
Ordinance.
Date of Reg istration
and uthentication :
02-92.lll.02
THE B K OF CHERRY CREEK. N.A.
De nver, Colo rad o, as Bond Registrar
By _____________ _
Authorized ignatory
A-4
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APPROVING LEGAL OPINION
Set fonh below is a true copy of the approving legaJ opinion of Bond Counsel delivered
on th date on which the Bonds were originally issued:
(Bond Counsel's approving opinion inserted in submargins)
I, th.: undersigned Clerk of the City of Englewood, Colorado do hereby certify that the
fo~:;cing approving opinio n ofKutak Rock LLP , Denv er, Colorado, is a true and complete copy
of.: manualiy executed and dated co py thereof on file in the official records of the City .
By _____________ _
City Cleric
SIGNMENT
FOR V VE RECEIVED, the undersigned sells, assigns and transfers unto ___ _
Social Security or Federal Employer
Identification Nwnber of Assignee
(Name and Address of si gnee)
the within Bond and does hereby incvocably constitute and appoint ---------,-
_____________ _, attorney to transfer sai d Bond on the books kep t for
registration th reof with full power of sub stitu ion in the premi ses .
Dated : _________ _
0l-92J)2.0l
SIGNATURE OF REGISTERED OWNER :
NOTICE : The signature to this assignment must
correspond with tht: name of the registered owner as
it appears upon the face of the within Bond in every
particular, without alteration or enl argement or any
change whatever .
SIG ATUREGUARANTEED:
(Bank. Trust Company or Firm)
A-5
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D ate
ugus '. u. ~no I
I ITI ATEO BY
C0U OL COMMUNICATI0
A enda Item
11 a Iii
ST FF SO U RCE
Subject
Ordinance Aprxoving Revenue
Bonds for the Dartmouth Ave '1ue
Storm Sewer Project
Ste\ an H . Fonda, Directo r o Utilities
CO U CILG0-'.l A D PR FVO US COl l CILACTI0
The original Starm . Jtt!r Fund was established in Februarv 1985 to provide system maintenanc?, PDES
permI1t 1ng, plan rev1e\\S and 1eld locates but did not provide for major capi tal improvements and
rehabilitation . Staff is recommending Council approva l of a resolution for Award of Contract for
constructi on o the storm sewer project and an ordinance approving the sto rmwater fee increase to meet
th e bond obliga tion at the August 6, :?001 meeting.
RECOMM E OED ACTION
The U til ities staff recommends Council approval of re ve nue bonds to flnance the constructron of the
Dartmouth venue Storm Sewer Rehabilitation Project in the amoun t of S 1.6 5 million. Of this amount.
s:o0,000 1s for the bond rese"'e fund , und rwriters ee .. nd required insurance .
BACKGROU 0 , A ALYSIS , A D ALTE RN ATIVES IDENTIFIED
The Utilities Departmen t conducted an inventory stud of the City's storm sewe r system and fou nd a storm
sewer line in the 1400 through the :?400 blocks of W . Dartmouth Avenue in ne2d o f rehabilitatio n. The
e'<is ting storm sewer has e perienced degradation to a level that immediate rehabil ita tion is necessary since
the lower portion of the line is completely disin tegrated.
Fl A CIAL IMPACT
Since a guarani J revenue stream is necessary to support the requested bondin!I issue , a rate increase is
being proposed to support this projec t resulting in an annual increase o f 59 .86 per reside nce per year.
UST OF ATTA CHM E TS
Ordinance