HomeMy WebLinkAboutordinance.council.027-94 (SE~m$ OF 1994)
AN ORDI~NANCE RATIFYING ~ CEM~RY LA~ ~RO~
DIS~CT; PROLOG FOR ~ ISSU~CE OF $519,~ OF SPEC~
ASS~S~ BO~S ~ ~-~P~T TO ~ C~RY L~
~RO~ DIS~CT; P~C~G D~ ~ CO~C~ON
~ SUCH SPEC~ ASSiStS, BO~S ~ DIS~CT;
P~C~G D~ OF C~T~ P~LIC OFFIC~
CO~C~ON ~ SUCH SP~ ASSeSSeS, BO~S
DIS~CT; ~PO~G A PAnG AG~ ~ BO~ ~GIS~;
~G AC~ON ~OFO~ T~N ~ CO~C~ON
~AS, ~e Ci~ of As~n ~ ~e Coun~ often ~d S~ of Colo~do (~ "City")
is a mu~cip~ ~fion duly org~ ~d e~sfing ~ a home ~le ci~ under ~cle ~ of
· e Consfi~fion of ~e S~ of Colo~do; ~d
~AS, ~e Ci~ CouncU of ~ Ci~ (~e "C0uncH") hm cr~t~ ~d es~bHsh~
wit~ ~e ~ H~ of ~e Ci~ a ~ 1~ improvement dis~ct ~own ~d designat~
~ "UfiH~ Underground Improvement Dis~ct No. 2-1992" (~mmoffiy refe~ to as
Ceme~ ~ Improvement Dis~ct') for ~e pu~ of bu~mg efis~g overbid el~c ~d
~mmuni~fion utilities (~e "Improvement") ~ ~e Ceme~ ~e Improvement Dis~ct
~d ~ss~g ~e ~st ~er~f ag~st r~ pro~ ~nefi~ ~er~y, purser to ~ Cheer
of ~e Ci~ of As~n, Colo~do (~e "C~r") ~d ~e ~nsfi~on ~d ~e laws of ~e S~te of
Colo~do, includ~g p~cul~ly ~cle ~ of ~e As~n C~e
Colo~do Underground Conversion of U~fi~ Act, ~cle 8 of rifle 29 of ~e Colo~do Revi~
S~tes, ~ ~end~ (~e "Act"); ~d
~AS, ~e Ceme~ ~e Improvement Dis~ct h~ b~n pro.fly fo~
a~rd~ wi~ ~e Char, ~e As~n ~ ~d ~e Act; ~d
~S, ~e foUo~g qu~fion reg~d~g ~e iss~ of s~i~ ~sment bonds
w~ sub~ ~ ~e el~tors of ~e Ci~ a ~ Ci~'s bie~ gene~ municip~ el~fion, ~d
w~ approv~ by a m~jofi~ of ~o~ vo~g on ~e qu~fion:
S~LL C~Y OF ASP~ D~T BE ~C~S~ ~ TO $630,~.~, ~ A
~PA~ COST OF ~ TO $918,~.~, BY ~ ISSU~CE OF SPEC~
ASS~S~ L~ ~RO~ BO~S, TO F~CE ~ B~G OF
CO~ON ~~, S~L ~ C~Y BE A~O~ZED TO
ASSeSSeS AG~ST ~ PROP~ BEeFeD,
C~Y BE A~O~ZED TO ~E~ ~ SPE~ ~ PR~EEDS OF SA~
and levied to pay the Bonds issued for the purpose of finan¢ing the Improvements, and ali
installments thereof, including alt interest thereon, and all penalties actually assessed, and to pay
and disburse said payments, the installments thereof, the interest thereon, and penalties actually
assessed, to any person or persons lawfully entitled thereto. In furtherance thereof, the Clerk
of the City shall deliver the assessment mil to the Director of Finance of the City (the "Director
of FinanceD. All special assessments shall, from the effective date of the Assessing Ordinance~
constitute a perpetual lien against the benefited property, with priority over all prior liens except
liens for general property taxes.
Section 6. The Director of Finance be, and hereby is, authorized, empowered and
directed, and it shall be his duty, to receive and collect within thirty (30) days after final
publication of the assessment ordinance and to certify to the Treasurer of Pitldn County,
Colorado, the special assessment, all installments thereof, including the interest thereon, and the
penalties accrued, levied to defray payment of the principal of and interest on the Bonds issued
for the purpose of financing the Improvements, including, without limiting the generality of the
foregoing, cost of the improvement, engineering and clerical service, advertising, cost of
inspection, cost of collecting special assessments, capimli?ed interest and for legal services for
preparing proceedings and advising in regard to the Bonds. All moneys received from the
special assessment, except moneys representing the City's administrative costs with respect
thereto, shall be placed in a separate fund to be designated ~City of Aspen, Colorado, Utility
Underground Improvement District No. 2-1992, Special Assessment Bonds, Series 1994, Bond
Fund" (the ~Bond Fund~), and said moneys in the Bond Fund shall be used as soon as they are
available for the purpose of paying the principal of (whether at maturity or upon redemption)
and interest on the Bonds and for no other purpose whatsoever, and as security for such
payment the Bond Fund is hereby exclusively pledged. There shall be deposited in the Bond
Fund from the proceeds of the Bonds accrued interest, to be used to pay interest on the Bonds
on January 1, 1995.
Section 7. For the purpose of financing the cost and expense of making the
Improvements, including all such proper incidental expenses and interest on the Bonds, the
Bonds shall be issued by the City in the form of fully registered bonds without coupons
designated "City of Aspen, Colorado, Utility Underground Improvement District No. 2-1992,
Special Assessment Bonds, Series 1994,' in the aggregate principal amount of $510,000,
consisting of fully registered bonds in the denomination of $5,000 each, consecutively numbered.
The Bonds shall be dated as of July 1, 1994. The Bonds shall bear interest payable semiannually
on the first days of January and July in each year, commencing January i, 1995, at the rates per
annum set forth below, and interest shall be paid by check or draft mailed to the registered
owners thereof by Norwest Bank Colorado, National Association (the "Paying Agent") at the
address appearing on the registration books of the City maintained by the Paying Agent as of
the June 15 or December 15 prior to the interest payment date.
The Bonds shall mature on July 1, 2004, and shall bear interest at the per annum rates
as follows:
0TI419~3.2 3
presentation thereof at the office of the Paying Agent, the City shall pay the Bond or Bonds so
Section 9. The Bonds shall be fully negotiable and shall have all the qualities of
negotiable paper, subject to the payment provisions stated here'm, and the owner or owners
thereof shall possess all rights enjoyed by owners of negotiable instruments under the provisions
of the Uniform Commercial Code~Investment Securities, article 8 of title 4 of the Colorado
Revised Statutes Annotated, as amended.
Section 10. Each of the Bonds shall be signed, subscribed and executed in the name of
and on behalf of the City by the manual or facsimile signature of the Mayor or Mayor Pro Tern,
and shall be attested by the manual or facsimile signature of the City Clerk or Deputy City
Clerk. The seal of the City or a facsimile thereof shall be affixed or imprinted thereon. The
Bonds bearing the signatures of the officers in office at the time of the signing thereof shall be
the valid and binding obligations of the City, notwithstanding that before the delivery thereof and
payment therefor, any or all of the persons whose signatures appear thereon shall have ceased
to fill their respective offices. When the Bonds have been duly executed, the Paying Agent is
authorized to, and shall, manually authenticate the Bonds as Paying Agent. No Bond shall be
secured by this Ordinance or entitled to the benefit hereof, or shall be valid or obligatory for any
purpose, unless the certificate of authentication of the Paying Agent, in substantially the form
set forth in this Ordinance, has been duly executed by the Paying Agent. Such certificate of the
Paying Agent upon any Bond shall be conclusive evidence and the only competent evidence that
such Bond has been authenticated and delivered hereunder. The Paying Agent's certificate of
authentication shall be deemed to have been duly executed by it if manually signed by an
authorized representative of the Paying Agent, but it shall not be necessary that the same
representative sign the certificate of authentication on all of the Bonds issued hereunder.
Section 11. The principal of and interest on the Bonds shall be payable solely from the
Bond Fund, consisting only of all the moneys collected (principal, interest and penalties, if any)
from the special assessment to be levied with respect to the Improvements, provided that any
proceeds from the sale of the Bonds remaining after the payment of all the costs and expenses
of making the Improvements shall be deposited in the Bond Fund. Any moneys remaining in
the Bond Fund after the principal of and interest on the Bonds are paid in full shall be deposited
to the General Fund of the City. Immediately upon the collection of the special assessments or
any installment thereof, the moneys therefrom shall be deposited in the Bond Fund; and said
fund is and will continue to be irrevocably and exclusively pledged for the payment of the
principal of and the interest on the Bonds.
Section 12. The City shall establLsh a separate fund to be designated "City of Aspen,
Colorado, Utility Underground Improvement District No. 2-1992, Special Assessment Bonds,
Series 1994, Reserve Fund~ (the 'Reserve Fund~). Simultaneously with the issuance of the
Bonds, the City shall deposit $51,000 of funds of the City hereby appropriated, to the Rese~e
Fund. If on any interest payment date, or on the final maturity date, for the Bonds, there are
insufficient revenues in the Bond Fund to pay the principal of or interest then due, then an
(Form of Bond)
[Front of Bond]
UNITED STATES OF AMF. R.ICA
STATE OF COLORADO COUNTY OF PITKIN
CITY OF ASPEN
~ITY UNDERGROUND IMPRO~ DISTRICT NO. 2-1992
SPECIAL ASSESSMENT BONDS
SERIES 1994
Registered No. Registered $
MATURITY DATE: IlqTEREST RATE: ORIGINAL ISSUE DATE: CUSIP NO.
July I, 2004 % July 1, 1994
PRINCIPAL SUM: DOLLARS
REGISTERED OWNER:
The City of Aspen, in the County of Pitldn and State of Colorado (the "City"), a
municipal corporation duly organized and existing as a home rule city under Article XX of the
Constitution of the State of Colorado, for value received, hereby promises to pay to the
Registered Owner (stated above), or registered assigns, but only from the special funds available
therefor, as hereinafter described, the Principal Sum (stated above) on the Maturity Date (stated
above), with interest hereon at the per annum Interest Rate (stated above), such interest being
payable serniannually on the fzrst days of January and July in each year, commencing January 1,
1995. Both principal and interest are payable in lawful money of the United States of America,
without deduction for exchange or collection charges. Interest is payable by check or draft
marled to the registered owner hereof at his address as it appears on the registration books of
the City maintained by Norwest Bank Colorado, National Association on the June 15 or
December 15 prior to any interest payment date, and principal is payable at the principal office
of Norwest Bank Colorado, National Association, in Denver, Colorado, upon presentation and
surrender of this bond. If, upon presentation at maturity, payment of this bond is not made as
herein provided, interest hereon shall continue at the same rate per annum until the principal
hereof is paid in full. The City reserves the right to designate another entity to act as paying
agent and registrar with respect to this bond.
REFEREaNCE IS MADE TO ~ FURTFIF~R PROVISIONS OF THIS BOND SET
FORTH ON THE REVERSE HF. REOF WHICH SHALL FOR ALL pURt~SES HAVE
THE SAME EFFECT AS THOUGH FULLY SET FORTH FIF, KEIN. ~
07~41963.2 7
(Form of Paying Agent's Certificate of Authentication)
Date of Authentication:
This bond is one of the Bonds described in the within mentioned Ordinance.
NORWEST BANK COLORADO, NATIONAL
ASSOCIATION
By
Authorized Representative
(End of Form of Paying Agent's
Certificate .of Authentication)
[End of Front of Bond]
[Back of Bond]
This bond is one of a series of bonds designated "City of Aspen, Colorado, Utility
Improvement District No. 2-1992, Special Assessment Bonds, Series 1994~ (the "Bonds"). The
Bonds are issued in the aggregate principal amount of $510,000, as fully registered bonds
without coupons, in the denomination of $5,000. The Bonds are being issued to f'mance the cost
of burying existing overhead electric and communication utilities (the "Improvements") within
Utility Underground Improvement District No. 2-1992 (commonly referred to as the "Cemetery
Lane Improvement Districff). The Bonds are being issued pursuant to and in accordanco with
the Charter of the City (the ~Charter"), the constitution and laws of the State of Colorado,
including particularly Article VII of the Aspen Cede, the Colorado Underground Conversion of
Utilities Act, article 8 of title 29 of the Colorado Revised Statutes Annotated, as amended (the
~Act"), and an ordinance (the ~Ordinance') duly adopted by the City.
The Bonds are subject to prior redemption on January 1, 1995 and on each interest
payment date thereafter, in sequential order by number, at a price equal to the principal amount
thereof plus accrued interest to the redemption date. ~Redemption shall be made upon not less
than 30 days' prior notice by mailing in the manner and upon the conditions provided in the
Ordinance.
02/41963.2 9
(Form for Transfer)
FOR VALUE RECEIVED, , the undersigned, hereby
sells, assigns and transfers unto (Tax Identification or Social Security
No. ) the within Bond and all rights thereunder and hereby irrevocably
constitutes and appoints attorney to transfer the within
Bond on the books kept for registration thereof, with full power of substitution in the premises.
Dated:
NOTICE: The signature to this assignment must
correspond with the name as it appears upon the
face of the within Bond in every particular, without
alternation, enlargement or any change whatever.
[end of bond]
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(e) To bring suit upon the Bonds.
No right or remedy conferred by this Ordinance upon any .owners of Bonds is intended
to be exclusive of any other fight or remedy, but each such right or remedy is cumulative and
is in addition to every other fight or remedy and may be exercised without exhausting and
without regard to any other remedy conferred by this Ordinance or by any other law. The
failure of the owners of any Bond so to proceed as .herein provided shall not relieve the City,
the Council or any of its officers, agents and employees of any liability for failure to perform
or to carry out any duty, obligation or other commitment.
Section 18. The Bonds are hereby sold to the Original Purchaser for a price equal to the
principal amount thereof, less an underwriting discount of $ , plus accrued
interest.
section 19. The Preliminary Official Statement, dated May __; 1994, presented to this
meeting, is hereby 'approved. The Mayor or Mayor Pro Tern of the City is authorized and
directed to execute the final Official Statement in substantially the form now before this meeting,
with such changes therein as shall be deemed necessary, or desirable, the execution of the final
Official Statement by the Mayor o? Mayor Pro Tern to represent conclusively the approval of
all changes from the form now before this meeting. The Original Purchaser is hereby authorized
to use the final Official Statement in connection with the sale of the Bonds..
Section 20. The City shall take all actions necessary so as to not adversely affect the
exclusion of interest on the Bonds from gross income for federal income tax purposes, including
payment of rebate if applicable. In.addition, the City covenants as follows:
(a) that it shall not use or permit the use of any proceeds of the Bonds 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 to be taken any other action or
actions, which would cause any of the Bonds to be an ~afoitrage bond~ within the
meaning of Section 148 of the Tax Code, or would otherwise cause the interest on the
Bonds to be includible in gross income for federal' income tax purposes
(b) that the City shall comply with the following restrictions of the Tax Code,
unless it receives an opinion of nationally recognized bond counsel stating that such
compliance is not necessary:
(i) Gross proceeds of the Bonds shall not be used in a manner which
will cause the Bonds to be considered Hprivate activity bonds~
(ii) The Bonds are not and shall not become directly or indirectly
~ federall~y guaranteed. '
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05/,,17/94 10:18 '~30~ 292 7799 KUTAK ROCK ~]002/002
~ 27. ~ ~ ~ ~t k r~ly ~ ~ ~ (~ ~ ~u~,
~ ~ ~ ~ by ~e ~, not m~ ~h~. ~ ~ ~ ~f $10,~,~ of
g~ ~ of 19~, ~ ~d~ (~ ~ ~o') d~g ~ y~ 1~. ~ ~
IIq'I~ODU~)')~. AND P, EAD as pmvlded by hw by the City Council of thc:, C/ty of
Aspca on thc 23rd ctay :of l~y 199~.
Mayor
ecity Cle~
Fn~AT_T~Y ~O )ti~., ~ 2nd ~rtoved 2nd orde~d published as provided b' F~w this
13th day of June 1994.'
M~yor
Atte~
15