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HomeMy WebLinkAbout1996 Ordinance No. 067• • • ORDINANCE NO. Ii} SERIES OF 1996 BY AUTHORITY COUNCll.BILLNO. 72 INTRODUCED BY COUNCll, MEMBER HATHAWAY AN ORDINANCE AUTHORIZING AN INTERGOVERNMENTAL AGREEMENT BETWEEN THE COLORADO WATER RESOURCES AND POWER DEVELOPMENT AUTHORITY AND THE CITY OF ENGLEWOOD, COLORADO ENTITLED "OBLIGATED PERSON'S UNDERTAKING TO PROVIDE CONTINUING DISCLOSURE." WHEREAS, the City of En,lewoocl, Colorado entered into a Loan ~ont with the Colorado Water Reoour<a and Power Development Authority; and WHEREAS, in connecti011 with the refinancing by the Col ei""do Wabo-Re.ources and Power Development Authcrity of a portion of the indebtedness se=-red by said Loan Agreement, it i • necsaary to enter into an agreement entitled "tbe Undertaking Agn,e•4ent" with the Authority which Nquin!& the City of Englewood to provide to the Aufoority certain types of finllllcial information; NOW , THEREFORE, BE IT ORlJAINED BY THE CITY CO"lP.olr,n, OF THE CITY OF ENGLEWOOD , COLORADO , AS FOLLOWS : ~-Tbe intergovernmental agreement 'Obligated Peraon'• Unde:rtalting To Provide Continuing Dilcl08Ure ", attached hereto u "Emibit A,• is hereby accepted and approved by the En,lewood City Council . &s:tilm...2 -The Mayor is authorized to eicecute ond the City Clerk to attest and seal the Intergovernmental Agreement for and on benalf of the City of Englewood, Colorado. Introduced, read in full, and passed on finlt reading on the 18th day ofN~vember, 1996. Published as a Bill for an Ordinance on the 21st day of November, 1996. Read by title and paaed an final reading on the 2nd day of December, 1996. Published by title as Ordinance N.ft/1, Series of 1996, on the 5th day of Dece m ber , 1996 . ~ -1 - • I, Louc:ruhio A. Ellil, City Clerk of the City of En,lewood , Colorado, hm,by certify that the above and fi>reaoinr ia a tnle ';!P1Jl,,tb Ordinuce pauecl w final ................. ., .. -."4-Ld@, Loucriahia A. ElJia • • -2- • • • Qbllgated fmon's Un de rtaking to Pr0\1dc Cont!nuJng P!scJ 0sur:e This Obligated Person 's Undertaking to Provide Continuing Disclosure (the "Undertaking") is executed and delivered between the City of Englewood, Colorado , a home- rul e muni cipality and political subdivision of the State of Colorado (the "Obligated Person'), an d the Colorado Water Resources and Power Development Authority, a body corporate and a political subdivision of the State of Colorado (th e "Issuer"), in connection with the iss uance of Was tewater Re,·olving Fund Refunding Revenue Bonds, i996 Series A of the Issuer (the "Se.::urties j . The Ob li gated Person and the Issuer covenant and agree as follows : Section 1. Definitions. "A ,mmll Inf(. 1""1Jation ' shall mean the information specified in Section 3 hereof. "GAAP" shall. ~can generally accepted acr.ounting princi pies as in effect from tim e to tim e in rh ~ !Tnit ed States . "Hoi,·;-t : · .ball mean any registtr ed owner of Securitfr.s an d .'Illy benefici.J owner of Securi\b .:.-i.hin the meaning of Rule 13-d under the Securities Ex d 1an!:e Act of 1934 . "MSR B" sh all !!l ean the Municipal Securities Rulemaking Board established in accordance with the prc,·;sions of Section lSB(b)(l) of the Securities Exchange Act of 1934 . \ "0 ~po;it ory" shall mean the followiog, and any other nationally recognized municipal se c~es inform ation repository within the meaning of Rule 15c2-12: Bloom berg Municipal Repositories P.O. Box 840 Princeton, NJ 08542-0840 Internet address: MUNIS @bloomberg.doc Phone : (609) 279-3200 Fax : (609) 279-3235 (609) 279-5963 JJ Kenny Information S~rvices The Repository 65 Broadwi.y • 16th Floor New Yo rk, NY 10006 Phone: (212) 770-4595 Fax: (212) 79 7-7994 The Bond Buyer Secc,ndary Market Disclosure 395 Hudson Street, 3rd Floor New York, NY 10014 Internet address : Disclosure@muller.com Phone: (212) 807-3814 Fax: (212) 989-9282 Disclosure, Inc . Document Augmentation/ Municipal Securities 5161 River Road Bethesda, MD 20816 Phone : (800) 633-8 24 1 Fax : (301) 718-2329 Moody'r,.NRMSIR Public Finance Information Center 99 Church Street New York, NY 10007 Phone : (800) 339-6306 Fax: (212) 553-1460 R. R. Donnelly Financial 559 Main Street Hudson, MA 017949 . Phone: (800) 580-3670 "Resolution" shall mean the Wastewater Revolving Fund Refunding Revenue Bond Resolution adopted by the Issuer on----~ 1996. "Ruic 15c2-12" shall mean Rule IS~-12 under the Securities Exchange Act of 1934 , as amended through the date of this Undenaking , ·· gether with all interpretive guidances or other official interpretations and explanatio n$ there of that are promulp:ated by the SEC . "State Information Depository" shall mean any public or private repository designated by the State of Colorado , and recognized as such by the SEC for the purposes of Ruic 15c2-12. "SEC ." shall mean the United States Securities and :Sxchange Commission . Section 2. Obligation to Provide Continuing Disclosure. (i) The Obligated Person hereby undcnakcs, in connection with the refinancing by the Issuer of a portion of the indcbtcdr.css of the Issuers secured by a Loan Agreement between the Issuer and the Obligated Person through the issuance of the Securities , for the benefit of Holders of the Securities , to provide or cause to be provided through the Issuer: (a) to each Reposito!)' and to the Slate Information Depository, no later than 180 days after the end of each fiscal year, commencing with the fiscal year ending December 30 , 1996, the Annual Informat'on relating to such fiscal year ; 2 • • • • • • (b) h' not submiaed IS pan of or with die Amwa1 lnfomwion, to each Repository 1111d 10 tht, ~Ate Information Depository, if any, auditl'.d finaicial stalmlents of the Obli&ated P~sm, for 1-J.i.fiscal year when and if they bv.lllTlr ' availat1I~; p11vidcd that if the Oblipted Person's ~ldited financial swem~ tha. are not &vui lable b•· the elate set f inh in (a) above , th~ /.nmial lnforu:..otion shall coni,it, .mudited financii<l statements in a fomat similar to the Obli!!atcd P=n's audit.:rl !in,.ncial , tatements for its most recent fiscal year, and the audited ~,;;11 st.."temcnts shail be fu ea ir. r!,.: >11111e manner IS the Anmial Information when ai..: ;fthc. ~come available; and ( c) 1(1 each Repository or to '.1 . · !SRB and to the Stale Information Depositor)', in a timely manner, notice of a failure to pi1:••li c1e any Annual Information requittd by Section 3 hereof. (ii) Tue obligations of the Obligate d Person pu.."SIIIDt to subsection (i) above may be tenninaled ~s to such Obligated Person pursuant o Section 8 hereof. Upon 111y such tumi.nr,tion, the Obligated Person shall provide notice of such termi!.dlior, to ,,:acb Repository, the Swc lnformation Depository and the MSRB . (iii) Nothing herein shall be deemed to prevent the Obligated Person from disseminating or re quire the Obligated Per50n to disseminate any othf·r information in addition to the reo,uired hereby in the manner set fonh herein or in any other m11w1tr . lfthe Obligated person dissemir.:.ttes any such additional information, the Oblipated Person shall hav, no obligation to update such information or include it in any future material: lisscminatcd hereunder . Section 3. Annual Information . (i) The required a.'l!lual lnfonnation shall consist of the Obligated Person's audited financial statements for the mosl recen: fisc!!I y~ar as provided in 2(i)(b) above , and the information contained in Appendix D to the Offir.ial Statement oflssuer relating to the Securities ~ __ ~ 1996 under the heading "THE SYSTEM " and "GENERAL FINANC!Al INFORMATION CONCERNI NG THE JOINT USE PUNT". (ii) All cir any portion of the Annual Iru'Ormation may be incorporated in the Annual Information by cross reference to any other documents v.1iich have been tiled with (a) the Repositories , the State Information Depository and, if the document is an official statement, the MSRB or (b) by SEC. (ii1J Annual Information for any fiscal year containing a.JY modified operation data or financial infonnation (as contemplated by Section 7(v), thereof) for such fl .seal year shall cxpla:n , in narrative form , the reasons for such modification and the effect of such mixlificatio,:i on the Annual lnfonnation being provided for such iiscal year . If a change in accounting princii,lcs is included in an y such modifi ca tion , such Annual lnfonnation shall present a comparison between the financial statements or infonratiou prepared on the basis of the modified accounting princ iples and those prcparcc on the basis of the former accounting principles . 3 Section •· Financial Statements. The Obligated Person's annual financial statements for each fueal yetr shall be prepared in accordance with OAAP as in effect from time to time . Such financial statements shall be audit~d by an independent accounting finn. S~ctl on 5. Remedies. If the Obligated Person shall fail to comply with any provision of this Undertaking, then the Issuer or any Holder of Securities may enforce, for the equal benefit and protection of all Holders similarly situated, by :nandamus or other ruit or proceeding at law or in equity, this Undenaking against the Obligated Person and any of the officers, agents and employees of the Obligated Person, and may compel the Obligated Person or any such officers, agents or employees to perform and carry out their duties UDder this Undertalcing; provided that the s,:,Je and exclusive remedy for ·breach of this Undertakina shall be an action to compel specific performance of the obliptions of the Obligated Person hereunder and 110 person or entity shall be entitled to recover monetary damages hereunder UDder any circumstances, and, provided funher, that any challenge to the adequacy of any information provided pursuant to Section 2 shall be brouaht ,,nly by the Issuer or the Holders of 25% in aggregate principal amount of the Securities at the time outstanding which are affected thereby. Section 6. Panics in Interest. This Undenaking is executed and delivered solely for the benefit of the • Holders. No other person (other than the· Issuer) shall have any ri 6bt to enforce the provisions hereof or any other rights hereunder. Section 7. Amendments. Without the consent of any Holders of Securities, the Issuer and the Obligated Person at any time and from time to time may enter into any amendment!. or changes 10 Undertaking for any of the following purposes: (i) to comply with or conform to any changes in Ru le 15c2-12 (whether required or op ti onal); (ii) to add a dissemination agent for the information required to be provided hereby and to make any necess:uy or desirable provisions with respect thereto; · (iii) to evidence the succession of another person to the Obligated Person and the assumption by an.y such successor of the covenants of the Obligated Person hereunder; (iv) to add to the covenants of the Obligated Person for the benefit of the Holders, or to sum nder any right or power herein conferred upon the Obligated Person; 4 • • • • (v) IQ modify the Cllllltellll, presentation and. fo)'lllat of the Am1111J J'monDatfOD from time to time as a result of a dlaqe Iii clrc:umrtances that arise1 from a clw.&e In lep) requiremenu, change in law, or change in the identity, naiure or S1ltUS of the Obligated rerson, or type of business conducted; provided that, (a) there is filed with the Trustee an opinion of counsel having ~.xpertise with respect to securitjes laws of the United States :if America or expertise with respect to the issuance of il!debtedness by states and political subdivisions thereof, that (i) the Undertaking, as amended, would Im·: complied with the requirements of Rule !Scl-12 at the time of the offering of the Securities, after taking in o account any amendmenu or authoritative interpretations of the; Rule, as well as any change in circumstances; and (ii) the amendment or change does not materially impair the interesu of Holders, or (b) such change or amendment is approved by the vote or consent of Holders of a majority in ouutanding principal amount of t::e Securities affer:ted thereby at or prior to the time of such amendment or change. Section 8. Termination. This Undertaking shall remain in full force and effect until the earlier of (i) the Issuer provides notice to each Depository, the State Info\'l'll2.tion Depository and the MSRB that the Obligated Person is no longer an 'obligated person' within the meaning of Rule !5c2-12 or (ii) all principal, re C:emption premiums, if any, and interest on the Securities shall have been paid in full or the Securities shall have otherwise been paid or legally defeased pursuant to Section 12.01 of the Resolution. n the event of such payment or legal defeasance, the Issuer shall promptly give written notice thereof to the Obligated Person . Section 9. Counterparts. This Undenaking may be executed in counterparu, each of which shall be an original and each of which shall constitute but one and the same instrument Section 10. Governing Law. nns UNDERTAKING SHALL BE GOVERNED BY THE LAWS OF THE STATE OF COLORADO DETERMINED WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAW . 5 IN Wl1NESS WHEREOF, t~e undenianed have duly authorized, executed and delivered this UndertaldDa as of_~ 1996 . COLORADO WATER RESOURCES AND POWE't< DEVELOP MENT AUTHORl1Y Name: Daniel L. I.aw Title: Executive Director 6 CI1Y OF ENGLEWOOD, COLORADO Name: Title : • • • • COUNCILCOMMUN~ATION Date Agtmcla 11am Subject November 18, 1998 BIii for an ordinance authorlzlng the 11 a vii exeeution of the undeltaklng agreement In a,nnection with a refinancing of Lkueton/Englewood Wast-Ill" Treatment Plant's lolln Initiated By I Staff Source Deoartment of I lnancial Services Frank Grvalewicz Director COUNCIL GOAL AND PREVIOUS COUNCIL ACTION ThiS bill for an ordinance authurizes the City entering Into an undertaking agreement with the Colorado Water Resources and Power Development Authority . Approval ofthiS measure wlli reduce the cost of financing the Uttleton/Englewood Wastewater Treatment Plant's Improvements done In 1990. RECOMMENDED ACTION Staff recommends City Council approve this bill for an ordinance authorizing the undertaking agreement with the Colorado Water Resources and Power Development Authority BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED The City of Englewood expanded the Uttleton/Englewood 'olVlilllewaterTreatment Pla nt In 1990. The financing was provided by the Colorado Water Resoun:es and Power De,-etopment Authority (the Authority). Due to favorable changes In Interest rates, the Authority Is refinancing th~ debt that provided the City's funding . The savings from the !'!fir .::~c!:,;: will be passed on to the participating e,,tltles. Due to recent Securities Exchange Commission regulations, It is necessary under the loan agreement to enter Into an undertaking agreement with the Authority that requires the City of Englewood , as an obligated person to disclose certaia financial information on a continuing basis . FINANCIAL IMPACT The City of Englewood wlli save borrowing costs by authorizing this undertaking agreement In connedion with the refinancing or the indebtedness . The amount or savings ls not yet estimated , but will be forwarded to City Council when an ·estimate is made . The City or Englewood will not have any out or pocket costs. LIST OF ATTACHMENTS : Copy of the proposed bill for an ordinance C "'"'" ., ""'"" ''-'" --~ • • • :er • Paw'• Ut4rtttFfn II Pmt4t c,e,. m : jg! Tilis ~d Pcnon'a Uadea1uia& 1D Prnvidl <:nmimlilla Disllare ~ "i.''llialakiag") is ll!UClll'!lllllli ddmnd be1-111c City o!J!liakwoad, Colonido, •~ 1111Dcipallty llld polilic■I llilidivili0II of'dle Stm of'Colondo (die ''Obllpled "'-1"), • .._ Colonda ~----._ ud Power Dnliopaml AlllbarilY, a boii'y carparato 1114 a polilk:■I s■bdiviaoftbDlk&ICofColondo(IM"l-"}.inOCllllXctiollwldllbol-atW-­ ~ FUllll ltdaling Rnalle Baadl, 11196 Series A of die 1-(Iba "Becuritin"). Thi OllllplDd Pm el die 1-COo9IIIDI lllll 1F10C • !i,Jlo- lecUM L D6111NL •~ lai..-i011" lblll m,:u lbc infGmlllimlplCified ill Stccioa3 ba,,o£. "O.-.AP" s11a11-pmnlly accep,d-,amma prillciplna in d!id ha lime ID lime ill lbc Ulllilld S-. "Holder" slllll ::ieaa.111y rqisacdowmr oCSccumia lDllaay badcill- ofSlcuritia willlia die aaruua o(Rulo 13-d UDdcr die 5eclr!tits £ldmee At! of 1934. 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Sr.ilea,. c-tapllrtl- nu u.i.tw11& 1ml' i. ae..-1 ia ~ each at wllich -u be ., oripallllllleadlofwbichlball--.u011tadlhe _ __._ sea..1t.c.-ruac1.aw. 11DS VND£RT AXING SUALL B GOvtllNID BY TJII LA.WI 01' TIit: STATE OF COLOL\DO DnUMU.IID wmlOtrr UGARD TO PIUNCIPUS OF CONILICT Of LAW. U /ll/N • • • IN Wfflllllll WHDIOP, ._, ........ ._ *'1...,.., ._.... _ MWNIIIIIIIU---.•lll ____ 1"6. COU,L\DO WAlD IIDOUltCa AMI POWD ~ AU'IIKJmn' Nam: Daill L. Law Tide: Eucutlvc Diroclor l!l'l •UtO.-,,T" • CITY OF ENGLIWOOD, COlOMDO U/1.:./H Tlll~P.rtfl