HomeMy WebLinkAboutordinance.council.028-85 ORDINANCE NO. 28
(Series of 1985)
AN ORDINANCE AUTHORIZING THE ISSUANCE BY THE CITY
OF ASPEN, COLORADO, OF ITS GENERAL OBLIGATION
ELECTRIC BONDS, SERIES 1985 IN THE PRINCIPAL AMOUNT
OF $3,150,000, FOR THE PURPOSE OF PROVIDING FUNDS
FOR THE UNDERGROUNDING OF POWER LINES AND FOR THE
ACQUISITION AND CONSTRUCTION OF CERTAIN STREET-
LIGHT IMPROVEMENTS, TOGETHER WITH ALL NECESSARY
INCIDENTAL AND APPURTENANT COSTS AND EXPENSES IN
CONNECTION THEREWITH; PRESCRIBING THE FORM OF SAID
BONDS; PROVIDING FOR THE SALE OF SAID BONDS;
ESTABLISHING CERTAIN FUNDS WITH RESPECT THERETO;
PRO~LIDIN~GA PLEDGE OF THE FULL FAITH AND CREDIT OF
THE CITY AS SECURITY FOR SAID BONDS; APPOINTING A
PAYING AGENT FOR SAID BONDS; AND PROVIDING OTHER
DETAILS IN CONNECTION WITH SAID BONDS.
WHEREAS, the City of Aspen, in the County of Pitkin and
State of Colorado (the "City"), is a municipal corporation
duly organized and existing as a home rule city pursuant to
Article XX of the Constitution of the State of Colorado and
the Charter of the City (the "Charter"); and
WHEREAS, a portion of Section 10.3 of the Charter pro-
vides in relevant part as follows:
that securities issued for acquiring utili-
ties and rights thereto, or acquiring, improving or
extending any municipal utility system, or any
combination of such purposes, may be issued
without election.
; and
WHEREAS, a portion of Section 10.4 of the Charter pro-
vides in relevant part as follows:
The city shall not become indebted for any
purpose or in any amount which, including existing
indebtedness, shall exceed twenty percent (20~) of
the assessed valuation of the taxable property
within the city, as shown by the last preceding
assessment purposes; provided, however, that In
determining the limitation of the city's power to
incur indebtedness there shall not be included
bonds issued for the acquisition or extension of
· public utilities;
; and
WHEREAS, the City Council (the "Council") of the City
hereby determines that it is in the best interest of the City
to finance the acquisition, improvement and extension of a
municipal utility system consisting of the undergrounding of
power lines and the acquisition and construction of certain
streetlight improvements (the "Project"); and
WHEREAS, the Council hereby determines to issue its
General Obligation Electric Bonds, Series 1985 (the "Bonds")
in the principal amount of $3,150,000, in order to provide a
portion of the funds necessary for the Project, the Bonds to
be general obligations of the City and secured by the full
faith and credit thereof; and
WHEREAS, the Council hereby determines to sell the Bonds
to Kirchner Moore & Company as provided herein; and
W}{EREAS, it is now necessary by ordinance to authorize
the issuance, sale and delivery of the Bonds, and to provide
for the details of and the security for the Bonds;
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BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ASPEN,
COLOPJ~DO THAT:
Section 1. In addition to terms otherwise defined
herein, the following terms shall have the following
meanings, as used herein:
"Bond Fund" shall mean the Aspen General Obligation
Electric Bonds Series 1985 Bond Fund established pursuant to
Section 6 of this Ordinance.
"Ordinance" shall mean this Ordinance.
"Paying Agent" means Central Bank of Denver or its
snccessors.
"Record Date" shall mean the 15th day of the month prior
to each interest payment date with respect to the Bonds.
"Registered Owner" shall mean the person or persons in
whose name or na~es a Bond shall be registered on the regis-
tration books of the City maintained by the Paying Agent.
Section 2. For the purpose of providing funds for the
acquisition, construction and improvement of the Project,
together with all necessary incidental and appurtenant costs
and expenses in connection therewith, the City shall issue
its "General Obligation Electric Bonds, Series 1985," in the
aggregate principal amount of $3,150,000. The principal of
and interest on the Bonds shall be payable from and secured
by a pledge of the full faith and credit of the City, as more
particularly hereinafter set forth.
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Section 3. The Bonds shall be issued as fully regis-
tered Bonds without coupons in the denomination of $5,000 or
any integral multiple thereof. The Bonds shall be dated as
of the April 1 or October 1 next preceding their date of
issue, or, if issued on an April 1 or October 1, as of such
date; provided, however, that any Bonds issued prior to
October 1, 1985 shall be dated as of July 1, 1985. If
interest on the Bonds shall be in default, Bonds issued in
exchange for Bonds surrendered for transfer or exchange shall
be dated as of the date to which interest has been paid in
full on the Bonds surrendered. Interest shall be payable on
the Bonds on April I and October 1 of each year, commencing
October 1, 1985.
The Bonds shall be numbered as the City and Paying Agent
deem appropriate, and shall mature on the 1st day of October
in the principal amounts and years, and shall bear per annum
interest from their dates at the rates per-annum as shown in
the following schedule:
Maturity Principal Amount Interest Rate
1988 $100 000 6.20%
1989 125 000 6.60%
1990 140 000 6.90%
1991 150 000 7.20%
1992 150 000 7.40%
1993 165 000 7.60%
1994 180 000 7.80%
1995 200 000 8.00%
1996 210 000 8.20%
1997 230 000 8.30%
1998 250 000 8.40%
1999 275 000 8.50%
2000 300,000 8.50%
2001 325 000 8.50%
2002 350,000 8.60%
If upon presentation at maturity payment of any Bond is
not made as herein provided, interest shall continue thereon
at the interest rate designated in the Bond until the prin-
cipal thereof is paid in full.
Principal of and premium, if any, on the Bonds shall be
payable in lawful money of the United States of America at
the principal corporate trust office of the Paying Agent in
Denver, Colorado, or of its successor. Interest on the Bonds
is payable by check or draft of the Paying Agent mailed t6
such person as is the registered owner thereof on the Record
Date.
The Paying Agent is hereby appointed as bond registrar
for the City for purposes of the Bonds. The Paying Agent
shall maintain on behalf of the City books for the purpose of
registration and transfer of Bonds, and such books shall
specify the person entitled to the Bonds and the rights
evidenced thereby, and all transfers of Bonds and the rights
evidenced thereby. Bonds may be transferred or exchanged
without cost, except for any tax or governmental charge
required to be paid with respect to such transfer or
exchange, at the principal corporate trust office of the
Paying Agent. Bonds may be exchanged for a like aggregate
principal amount of Bonds of other authorized denominations
of the same maturity. Upon surrender for transfer of any
Bond, duly endorsed for transfer or accompanied by an
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assignment duly executed by the Registered Owner or his
attorneys duly authorized in writing, the City shall execute
and the Paying Agent shall authenticate and deliver in the
name of the transferee or transferees a new Bond or Bonds for
a like aggregate principal amount. The person in whose name
any Bond shall be registered shall be deemed and regarded as
the absolute owner thereof for all purposes.
The Bonds maturing on and after October 1, 1992 are
callable for redemption at the option of the City, in whole
or in part, and if in part, in inverse order of maturities
and by lot within a maturity in the manner designated by the
Paying Agent, on April 1, 1992, and on any interest payment
date thereafter, at a redemption price (expressed as a per-
centage of principal amount) of 101~, plus accrued interest
thereon to the redemption date if redeemed on or before
April 1, 1995, and at a redemption price of par plus accrued
interest thereon to the redemption date if redeemed on
October 1, 1995 or thereafter.
Notice of any redemption shall be given by the Paying
Agent in the name of the City, by publication of such notice
at least one (1) time in The Bond Buyer published in New
York, New York, if then in business and publishing, and, if
not, then in a financial journal or newspaper of general
circulation in New York, New York, such publication being not
less than thirty (30) days prior to the redemption date
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specified in such notice, or by sending a copy of such notice
by certified or registered first-class, postage prepaid mail,
at least thirty (30) days prior to the redemption date, to
the holders of each of the Bonds being redeemed. Such notice
shall specify the number or numbers of the Bonds so to be
redeemed and the redemption date. If any of the Bonds shall
have been duly called for redemption and if on or before the
redemption date there shall have been deposited with the
Paying Agent in the Bond Fund funds sufficient to pay the
redemption price of such Bonds at the redemption date, then
said Bonds shall become due and payable at such redemption
date, and from and after such date interest will cease to
accrue thereon. Any Bonds redeemed prior to their maturity
by call for prior redemption or otherwise shall not be
reissued and shall be cancelled the same as Bonds paid at or
after maturity.
The Bonds shall be executed in the name and on behalf of
the City with the manual or facsimile signature of the Mayor,
shall bear a manual or facsimile of the seal of the City and
shall be attested by the manual or facsimile signature of the
City Clerk. Should any officer whose manual or facsimile
signature .appears on the Bonds cease to be such officer
before delivery of the Bonds, such manual or facsimile signa-
ture shall nevertheless be valid and sufficient for all
purposes. The Mayor and the City Clerk are hereby authorized
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and directed to prepare and to execute the Bonds in accord-
ance with the requirements of this Ordinance. When the Bonds
have been duly executed and sold, the officers of the City
are authorized to, and shall, deliver the Bonds to the Paying
Agent for authentication. 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 officer of the Paying Agent, but it
shall not be necessary that the same officer sign the certif-
icate of authentication on all of the Bonds issued hereunder.
Upon the authentication of the Bonds, the Paying Agent
shall deliver the same to Kirchner Moore & Company or its
designees as directed by the City as hereinafter provided.
Prior to the delivery by the Paying Agent of the Bonds there
shall be filed with the Paying Agent the following:
(a) A certified copy of this Ordinance.
(b) A request and authorization to the Paying
Agent on behalf of the City and signed by its Mayor to
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authenticate and deliver the Bonds to Kirchner Moore &
Company upon payment to the City of a sum specified in
such request and authorization plus accrued interest
thereon to the date of delivery. The proceeds of such
payment shall be paid over to the City and deposited as
provided in this Ordinance.
If any outstanding Bond shall become lost, apparently
destroyed or wrongfully taken, it may be reissued in the form
and tenor of the lost, destroyed or taken Bond upon the owner
furnishing, to the satisfaction of the City Clerk: (a) proof
of ownership (which may be shown by the registration books of
the Paying Agent), (b) proof of loss or destruction, and (c)
payment of the cost of preparing and issuing the new security.
Section 4. The Bonds shall be in substantially the
following form:
(Form of Bond)
UNITED STATES OF AMERICA
CITY OF ASPEN, COLORADO
GENERAL OBLIGATION ELECTRIC BOND
SERIES 1985
No. R $
The City of Aspen, in the County of Pitkin and State of
Colorado (the "City"), for value received, hereby promises to
pay to the order of or
registered assigns on October 1, . , the principal sum of
DOLLARS
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in lawful money of the United States of America, with
interest thereon from the date hereof at the rate of
percent ( ~) per annum, payable on October 1,
1985, and semiannually thereafter on the 1st day of April and
the 1st day of October of each year, the principal of this
bond being payable at the principal corporate trust office of
Central Bank of Denver, as Paying Agent (the "Paying Agent"),
and the interest hereon to be paid to such person as is the
registered owner hereof on the Record Date by check or draft
of the Paying Agent mailed to said registered owner. The
Record Date is the 15th day of the month preceding any
interest payment date.
This bond is one of an issue of bonds of the City
designated "General Obligation Electric Bonds, Series 1985,"
issued in the principal amount of $3,150,000 (the "Bonds").
The Bonds are being issued by the City for the purpose of
providing funds for the undergrounding of power lines and for
the acquisition and construction of certain streetlight
improvements, together with all necessary incidental and
appurtenant costs and expenses in connection therewith,
pursuant to and in full conformity with the Constitution and
laws of the State of Colorado, the Charter of the City of
Aspen, Colorado (the "Charter") and an ordinance (the
"Ordinance") duly passed and adopted by the City prior to the
issuance hereof.
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The Bonds maturing on and after October 1, 1992 are
callable for redemption at the option of the City, in whole
or in part, and if in part, in inverse order of maturities
and by lot within a maturity in the manner designated by the
Paying Agent, on April 1, 1992, and on any interest payment
date thereafter, at the redemption price (expressed as a
percentage of principal amount) of 101% plus accrued interest
thereon to the date fixed for redemption if redeemed on or
before April 1, 1995, and at a redemption price of par plus
accrued interest thereon to the date fixed for redemption if
redeemed on October 1, 1995 or thereafter.
Redemption shall be made upon not less than thirty (30)
days prior notice by publication of such notice at least one
(1) time in The Bond Buyer published in New York, New York if
then in business and publishing, and if not, then in a
financial journal or newspaper of general circulation in New
York, New York, or by sending a copy of such notice by
certified or registered first-class, postage prepaid mail, at
least thirty (30) days prior to the redemption date specified
in such notice, to the registered owners of each of the Bonds
being redeemed. Such notice shall specify the number or
numbers of the Bonds so to be redeemed and the redemption
date. If this bond shall have been duly called for redemp-
tion and if on or before the redemption date there shall have
been deposited with the Paying Agent funds sufficient to pay
the redemption price of this bond at the redemption date,
then this bond shall become due and payable at such redemp-
tion date, and interest hereon shall cease to accrue after
the redemption date.
As security for the payment of the principal of,
premium, if any, and interest on the Bonds, including this
bond, the City pledges the full faith and credit of the City.
This bond is transferable by the registered owner hereof
in person or by his attorney duly authorized in writing at
the principal corporate trust office of the Paying Agent in
Denver, Colorado, but only in the manner, subject to the
limitations and upon payment of the charges provided in the
Ordinance, and upon surrender and cancellation of this bond.
Upon such transfer a new registered bond or bonds of the same
series and the same maturity and of authorized denomination
or denominations ($5,000 and integral multiples thereof) for
the same aggregate principal amount will be issued to the
transferee in exchange therefor. The City and the Paying
Agent may deem and treat the registered owner hereof as the
absolute owner hereof (whether or not this bond shall be
overdue) for the purpose of receiving payment of or on
account of principal hereof and premium, if any, and interest
due hereon and for all other purposes, and neither the City
nor the Paying Agent shall be affected by any notice to the
contrary.
It is hereby certified that all conditions, acts and
things required by the constitution and laws of the State of
Colorado, and the Charter and ordinances (including the
Ordinance) of the City, to exist, to happen and to be per-
formed, precedent to and in the issuance of this bond, exist,
have happened and have been performed, and that the Bonds do
not exceed any limitations prescribed by said constitution or
laws of the State of Colorado, or the Charter or ordinances
of the City.
This bond shall not be eRtitled to any benefit under the
Ordinance, or become valid or obligatory for any purpose
until the Paying Agent shall have signed the certificate of
authentication hereon.
IN WITNESS WHEREOF, the City of Aspen, Colorado, has
caused this bond to be signed with the facsimile signature of
its Mayor, sealed with a facsimile of the impression of its
corporate seal, and attested with the facsimile signature of
its City Clerk, as of the 1st day of ,
CITY OF ASPEN, COLORADO
(FACSIMILE SEAL) (Facsimile Signature)
(Do Not Sign)
Mayor
ATTEST:
(Facsimile Signature)
(Do not Sign)
City Clerk
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FOR VALUE RECEIVED, , the under-
signed, 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 or 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
alteration or enlargement or
any change whatever.
(End of Form of Bond)
(Form of Paying Agent's Certificate of Authentication)
This is one of the Bonds described in the within
mentioned Ordinance.
CENTRAL BANK OF DENVER, as
Paying Agent
By
Authorized Officer
(End of Form of Paying Agent's
Certificate of Authentication)
[Form of Approving Opinion of Kutak Rock & Campbell,
Bond Counsel, may be printed on the Bonds.]
Section 5. The Bonds, when executed as provided by law,
shall be delivered to Kirchner Moore & Company, upon receipt
of $3,072,555.50, plus accrued interest from July 1, 1985 to
the date of delivery thereof. Such sale of the Bonds is
hereby found to be to the best advantage of the City and is
hereby approved.
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The proceeds of the Bonds shall be used exclusively for
the Project and related costs and expenses in connection
therewith.
Neither the purchaser of the Bonds nor the subsequent
owner of any of them shall be responsible for the application
or disposal of the funds derived from the sale thereof by the
City or any of its officers. The issuance of the Bonds by
the City shall constitute a warranty by and on behalf of the
City, for the benefit of each and every owner of the Bonds,
that the Bonds have been issued for a valuable consideration
in full conformity with law.
Section 6. The "Aspen General Obligation Electric Bonds
Series 1985 Bond Fund" is hereby authorized and created with
the Paying Agent as a trust fund for the benefit of the
owners of the Bonds, into which shall be deposited on or
prior to each principal and interest payment date by the City
sums sufficient to pay the principal of, premium, if any, and
interest on the Bonds when due. The Paying Agent shall use
moneys in the Bond Fund solely for the purpose of paying the
principal, premium, if any, and interest on the Bonds when
due.
Section 7. The full faith and credit of the City are
hereby pledged as security for the payment of the principal
of and interest on the Bonds.
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Section 8. In furtherance of said pledge of the full
faith and credit of the City, it is hereby irrevocably
covenanted and agreed that in the event that any time while
any of the Bonds remain outstanding the payments required to
be made pursuant to Section 6 hereof are not made in strict
accordance with the terms thereof, the Council shall promptly
pass and adopt supplementary or emergency appropriation
ordinances or resolutions and make such allocations and
deposits of moneys from general funds of the City to the Bond
Fund as are necessary to bring the amount on deposit in the
Bond Fund to the level at which it would have been had the
City strictly complied with the provisions of said Section
6. Said actions shall be initiated at the first regular or
special meeting of the Council, and completed as promptly as
possible. Thereafter said appropriations, allocations and
deposits shall continue to be made in such amounts and with
sufficient frequency to assure that the sums of money
required to be deposited in the Bond Fund together with other
moneys on deposit in the Bond Fund, shall be sufficient to
pay the principal of, premium, if any, and interest on the
Bonds when due.
Section 9. Any moneys on deposit in the Bond Fund shall
be invested only in obligations, securities or instruments
which are legal investments for funds of the City. All
earnings, income, profits and losses shall be credited
thereto.
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The City hereby covenants and agrees that the City shall
take no action which could result in the Bonds becoming
"industrial development bonds" or"arbitrage bonds" as
defined in Section 103(b) and 103(¢), respectively, of the
Internal Revenue Code of 1954, as amended.
Section 10. The Bonds may be refunded at the discretion
and by action of the Council, subject to provisions con-
cerning their payment and any other contractual limitations
contained in this Ordinance, as authorized and permitted by
the Charter. A Bond shall not be deemed to be outstanding
hereunder if it shall have been paid and cancelled or if cash
funds or direct general obligations of, or obligations the
payment of the principal of and interest on which are uncon-
ditionally guaranteed by, the United States of America
("Governmental Obligations"), shall have been deposited in
trust for the payment thereof (whether upon or prior to the
maturity of any such Bond). In computing the amount of the
deposit described above, the City may include interest to be
earned on the Governmental Obligations.
Section 11. Central Bank of Denver, in Denver,
Colorado, is hereby designated as the Paying Agent and Bank
Registrar for the Bonds. The City shall transfer to the
Paying Agent, to the Bond Fund, in immediately available
funds, such amounts as are required to pay the principal of,
premium, if any, and interest on the Bonds as and when the
same become due.
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Section 12. The use of a Preliminary and a final
Official Statement by the purchaser in connection with the
sale of the Bonds is approved and the Mayor, on behalf of the
City, is authorized to sign one or more copies of said final
Official Statement, by and on behalf of the City, in sub-
stantially the form presented to this meeting.
Section 13. Should any one or more sections or pro~
vis~ons of this Ordinance be judicially determined to be
invalid or unenforceable, such determination shall not
affect, impair or invalidate the remaining provisions hereof,
the intention being that the various provisions hereof are
severable.
Section 14. Ail ordinances, or parts thereof, in
conflict with this Ordinance are hereby repealed. After the
Bonds have been issued, this Ordinance shall be and remain
irrepealable until the Bonds and the interest thereon shall
be fully paid, satisfied and discharged in the manner herein
provided, or sufficient provision shall have been made for
such payment, satisfaction and discharge such that no Bonds
are deemed to be outstanding hereunder.
Section 15. A public hearing on the ordinance shall be
held on the ~ day of~/985, at ~d~ p.m. in the
City
Council Chambers, Aspen City Hall, Aspen, Colorado.
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INTRODUCED, RE~ AND ORDERED published as provided by
law by the City Council of the City of Aspen on the 13th day
of May 1985.
[SEAL]
William L. '
Stl ling, Mayo~
Kathryn S.~6~h, City Clerk
FINALLY adopted, passed and approved this 2gth day of
June 1985.
'~ -.- William L. Stirling, Mayor ~
~TEST:-~c
Kathryn~'~¢h,. 'i.!~ City Clerk
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RECORD OF PROCEEDINGS 100 Leaves
STATE OF COLO~DO CERTIFI~TE
COUNTY OF PITKIN
I, Kathryn S. Koch, City Clerk of Aspen, Colorado, do here~
certify that the above and foregoing ordinance was introduced,
read in full, and passed on first reading at a regular meeting of
the C~ty Council of the City of Aspen on /5 . .,
1985, and published in the AsPen Times, a weekly newspaper of
general circulation published in the Ci~ of Aspen,Colorado, in
its issue of ~~ /~ 1985, and was finally
adopted ~d approved at a regular meeting of the City Council on
______7~<~ ~ . , 1985, and ordered published as
_
Ordinance No. ~o , Series of 1985, of said City as provided
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IN WITNESS WHEREOF, I have hereunto set ~ hand and the seal
of said City of Aspen, Colorado this __~/_ ..... day of
~ 1985.
K~C~ty Clerk
.SEAL~
Deputy City ~erk