federal
and state regulations, (3) rehabilitation of combined sewers to reduce or eliminate
overflows and flooding, (4) completion of the Citys interceptor sewer system,
(5) acquisition of necessary property interests, and (6) rehabilitation of
existing aged sewage treatment and pumping facilities, with the principal and
interest of said bonds to be payable solely from the revenues derived by the
City from the operation of its sewerage system, including all future
improvements and extensions thereto?
and it
was found and determined that more than a majority of the qualified electors of
the City voting on the question had voted in favor of the issuance of said
revenue bonds for the purpose aforesaid, the vote on said question having been
24,776 votes for said question to 14,045 votes against said question; and
WHEREAS,
the Council (the Governing Body) of the City has caused plans and
specifications for extensions and improvements to the Sanitary Sewer System and
a cost estimate to be made by the Consulting Engineer (as defined below); and
WHEREAS,
the plans and specifications and the cost estimate are accepted and approved
and are on file in the office of the City Clerk, the amount of the estimated
cost being not less than the Original Principal Amount; and
WHEREAS,
$28,200,000.00 of the bonds so authorized have been issued (the Series 1998A
Bonds, the Series 1999A Bonds and the Series 2000A Bonds as defined below) and
the City finds and determines that it is necessary and advisable and in the
best interest of the City and of its inhabitants to issue the Bonds in the
Original Principal Amount; and
WHEREAS,
the City has issued its Sewerage System Refunding and Improvement Revenue
Bonds, Series 1992, dated March 1, 1992, in the original principal amount of
$37,340,000.00, of which $16,990,000.00 remains outstanding as of the date of passage
of this Ordinance (the Series 1992A Bonds), authorized by Committee
Substitute for Ordinance No. 911537 passed on January 30, 1992 and Ordinance
No. 920196 passed on February 27, 1992 (collectively, the Series 1992A
Ordinance); and
WHEREAS,
the City has issued its Sewerage System Revenue Bonds (State Revolving Fund
Program) Series 1992B, dated June 1, 1992, in the original principal amount of
$1,265,000.00, of which $985,000.00 remains outstanding as of the date of
passage of this Ordinance (the Series 1992B Bonds), authorized by Committee
Substitute for Ordinance No. 920636 passed on June 4, 1992 and Ordinance No.
920681 passed on June 11, 1992 (collectively, the Series 1992B Ordinance);
and
WHEREAS,
the City has issued its Sewerage System Revenue Bonds (State Revolving Fund
Program) Series 1995A, dated April 1, 1995, in the original principal amount of
$18,000,000.00, of which $17,750,000.00 remains outstanding as of the date of
passage of this Ordinance (the Series 1995A Bonds), authorized by Committee
Substitute for Ordinance No. 950353 passed on April 13, 1995 and Ordinance No.
950516 passed on April 20, 1995 (collectively, the Series 1995A Ordinance);
and
WHEREAS,
the City has issued its Sewerage System Revenue Bonds (State Revolving Fund
Program) Series 1996A, dated April 1, 1996, in the original principal amount of
$24,000,000.00, of which $20,930,000.00 remains outstanding as of the date of
passage of this Ordinance (the Series 1996A Bonds), authorized by Committee
Substitute for Ordinance No. 960253 passed on March 28, 1996 and Ordinance No.
960440 passed on April 18, 1996 (the Series 1996A Ordinance); and
WHEREAS,
the City has issued its Sewerage System Revenue Bonds (State Revolving Fund
Program) Series 1997A, dated April 24, 1997, in the original principal amount
of $22,235,000.00, of which $19,645,000.00 remains outstanding as of the date
of passage of this Ordinance (the Series 1997A Bonds), authorized by
Ordinance No. 970285 passed on March 27, 1997 and Ordinance No. 970478 passed
on April 10, 1997 (the Series 1997A Ordinance); and
WHEREAS,
the City has issued its Sewerage System Revenue Bonds (State Revolving Fund
Program) Series 1998A, dated April 1, 1998, in the original principal amount of
$9,200,000.00, of which $8,905,000 remains outstanding as of the date of
passage of this Ordinance (the Series 1998A Bonds, the Series 1992A Bonds,
the Series 1992B Bonds, the Series 1995A Bonds, the Series 1996A Bonds, the
Series 1997A Bonds and the Series 1998A Bonds collectively referred to herein
as the Outstanding Senior Bonds), authorized by Ordinance No. 980253 passed
on March 26, 1998 and Ordinance No. 980417 passed on April 9, 1998 (the Series
1998A Ordinance, the Series 1992A Ordinance, the Series 1992B Ordinance, the
Series 1995A Ordinance, the Series 1996A Ordinance, the Series 1997A Ordinance
and the Series 1998A Ordinance collectively referred to herein as the
Outstanding Senior Bond Ordinance); and
WHEREAS,
the City has issued its Sanitary Sewer System Revenue Bonds (State Revolving
Fund Program) Series 1999A, dated June 1, 1999, in the original principal
amount of $6,000,000.00, of which $5,890,000.00 remains outstanding as of the
date of passage of this Ordinance (the Series 1999A Bonds), authorized by
Ordinance No. 990589 passed on May 6, 1999 and Ordinance No. 990750 passed on
May 20, 1999 (the Series 1999A Ordinance); and
WHEREAS,
the City has issued its Sanitary Sewer System Revenue Bonds (State Revolving
Fund Program) Series 2000A, dated April 1, 2000, in the original principal
amount of $13,000,000.00, of which $13,000,000.00 remains outstanding as of the
date of passage of this Ordinance (the Series 2000A Bonds, the Series 1999A
Bonds and the Series 2000A Bonds collectively referred to herein as the
Outstanding Parity Bonds), authorized by Ordinance No. 000309 passed on March
9, 2000 and Ordinance No. 000415 passed on March 23, 2000 (the Series 2000A
Ordinance, the Series 1999A Ordinance and the Series 2000A Ordinance
collectively referred to herein as the Outstanding Parity Bond Ordinance);
and
WHEREAS,
the City, upon the issuance of the Bonds, will not have outstanding any other
bonds or other obligations payable from the Net Sanitary Sewer Revenues other
than the Outstanding Senior Bonds, the Outstanding Parity Bonds and the Bonds;
and
WHEREAS,
under the provisions of the Outstanding Senior Bond Ordinance and the
Outstanding Parity Bond Ordinance the City may issue additional bonds payable
out of the Net Sanitary Sewer Revenues that are junior and subordinate to the
Outstanding Senior Bonds and that are on a parity with the Outstanding Parity
Bonds, in each case only if certain conditions are met; and
WHEREAS,
it is hereby found and determined that it is necessary and advisable and in the
best interest of the City and its inhabitants that revenue bonds be issued and
secured in the form and manner provided in this Ordinance, subject to the Terms
Ordinance and the conditions of the Outstanding Senior Bond Ordinance and the
Outstanding Parity Bond Ordinance; NOW, THEREFORE,
BE
IT ORDAINED BY THE COUNCIL OF KANSAS CITY, MISSOURI:
ARTICLE I
DEFINITIONS
Section 101. Definitions of Words and
Terms. Capitalized words and terms not otherwise defined in this Ordinance
have the meanings set forth in the Purchase Agreement (defined below). In
addition to the foregoing and words and terms defined in the Recitals and
elsewhere in this Ordinance, capitalized words and terms have the following
meanings in this Ordinance:
Administrative Calculation Date means the
Business Day preceding each July 1, commencing on the Business Day preceding
July 1, 2001.
Administrative Fee means the fee payable to
DNR equal to 0.714% of the outstanding principal amount of the Revolving Fund
Loan on the Administrative Fee Calculation Date.
Authority means the State Environmental
Improvement and Energy Resources Authority.
Authority Bonds means the Water Pollution
Control and Drinking Water Revenue Bonds (State Revolving Funds Programs -
Master Trust) Series 2000B of the Authority.
Authority Program Bonds means the Authority
Bonds and any other bonds of the Authority issued under the SRF Program, all or
a portion of the proceeds of which are loaned to the City pursuant to the SRF
Program.
Authorized Representative means the
representative of the City designated by the City in accordance with the
Regulations.
Bondowner means the Authority or its
assigns.
Bond Register means the books for the
registration, transfer and exchange of Bonds kept at the office of the Paying
Agent.
Combined System Revenue Fund means the
Sewer Fund ratified and confirmed by Section 401.
Combined System Revenues means all income
and revenues derived by the City from the Combined System, including investment
and rental income, net proceeds from business interruption insurance, sales tax
revenues which have been annually appropriated by the City or which are limited
solely to the payment of improvements to or expenses of the Combined System and
any amounts deposited in escrow in connection with the acquisition,
construction, remodeling, renovation and equipping of facilities to be applied
during the period of determination to pay interest on Outstanding Senior Bonds,
but excluding any profits or losses on the early extinguishment of debt or on
the sale or other disposition of investments or fixed or capital assets not in
the ordinary course of business.
Consultant means the Consulting Engineer,
an independent certified public accountant or a firm of independent certified
public accountants.
Consulting Engineer means each independent
engineer or engineering firm with experience in designing and constructing
wastewater treatment, sanitary sewerage or water pollution control facilities
and retained by the City.
Current Sanitary Sewer Expenses means all
reasonable and necessary expenses of ownership, operation, maintenance and
repair of the Sanitary Sewer System and keeping the Sanitary Sewer System in
good repair and working order, determined in accordance with generally accepted
accounting principles, including current maintenance charges, expenses of
reasonable upkeep and repairs, salaries, wages, costs of materials and
supplies, Paying Agent fees and expenses, annual audits, periodic Consultants
reports, properly allocated share of charges for insurance, the cost of
purchased water, gas and power, obligations (other than for borrowed money or
for rents payable under capital leases) incurred in the ordinary course of
business, liabilities incurred by endorsement for collection or deposit of
checks or drafts received in the ordinary course of business, short-term
obligations incurred and payable within a particular Fiscal Year, obligations
incurred for the purpose of leasing (pursuant to a true or operating lease)
equipment, fixtures, inventory or other personal property, and all other
expenses incident to the ownership and operation of the Sanitary Sewer System,
but excluding interest paid on Sanitary Sewer System Revenue Bonds,
depreciation and amortization charges (including payments into the Sanitary
Sewer System Depreciation and Replacement Account), and all general administrative
expenses of the City not related to the operation of the Sanitary Sewer System.
Defeasance Securities means:
(a) Federal Securities;
(b) obligations of the Resolution
Funding Corporation or any successor, but only if the use of the obligations to
pay and discharge Bonds pursuant to Article XI will cause the discharged Bonds
to be rated in the highest long-term rating category by the Rating Agency; or
(c) obligations of any state of the
United States of America or of any agency, instrumentality or local
governmental unit of any state that:
(i) are not callable at the option of
the obligor prior to maturity or for which irrevocable instructions have been
given by the obligor to call on the date specified in the instructions, and
(ii) are fully secured as to
principal, redemption premium and interest by a fund, consisting of cash or
Federal Securities, that:
(A) may be applied only to the payment
of principal, redemption premium and interest on the obligations, and
(B) is sufficient, as verified by a
nationally recognized independent certified public accountant, to pay the
principal, redemption premium and interest on the obligations.
Depreciation
and Replacement Account means the fund or account created or ratified and
confirmed by Section 401.
DNR
means the Missouri Department of Natural Resources.
Federal
Securities means any direct obligation of, or obligation the timely payment of
the principal of and interest on which is unconditionally guaranteed by, the
United States of America and backed by its full faith and credit.
Interest
Payment Date means each January 1 and July 1, commencing July 1, 2001.
Net
Sanitary Sewer Revenues means Sanitary Sewer Revenues less Current Sanitary
Sewer Expenses.
Net
Sanitary Sewer Revenues Available for Debt Service means, for the period of
determination, Sanitary Sewer Revenues less Current Sanitary Sewer Expenses.
Ordinance
means this Ordinance as from time to time amended in accordance with its terms.
Outstanding
means, as of the date of determination, all Bonds issued and delivered under
this Ordinance, except:
(1) Bonds cancelled by the Paying
Agent or delivered to the Paying Agent for cancellation;
(2) Bonds for the payment of the
principal or redemption price of and interest on which money or Defeasance
Securities are held under Section 1101;
(3) Bonds in exchange for which, or in
lieu of which, other Bonds have been registered and delivered pursuant to this
Ordinance; and
(4) Bonds allegedly mutilated,
destroyed, lost, or stolen and paid under Section 208.
Owner
means the Bondowner.
Parity
Bonds means the Outstanding Parity Bonds and any parity bonds issued under
Section 902 payable from the Net Sanitary Sewer Revenues on a parity basis with
the Bonds.
Parity
Ordinance means the Outstanding Parity Bond Ordinance and the Ordinance under
which any other Parity Bonds are issued.
Purchase
Agreement means the Purchase Agreement dated as of November 1, 2000, by and
among the City, the Authority and DNR.
Record
Date means the 15th day (whether or not a Business Day) of the calendar month
next preceding the applicable Interest Payment Date.
Revolving
Fund Agreement means the Revolving Fund Agreement dated as of November 1,
2000, by and among the City, the Authority and DNR.
Revolving
Fund Loan means the no-interest loan to the City by DNR from the Wastewater
Loan Fund under the Revolving Fund Agreement.
SRF
Program means the Missouri Leveraged State Water Pollution Control Revolving
Fund Program of DNR.
SRF
Program Bonds means the Outstanding Senior Bonds, the Outstanding Parity
Bonds, the Bonds and any other Sanitary Sewer System Revenue Bonds issued in
connection with the Citys participation in the SRF Program.
SRF
Subsidy means the amount of investment earnings which will accrue on the
Reserve Account or Reserve Fund during each Fiscal Year (taking into account
scheduled transfers from the Reserve Account or Reserve Fund which will occur
upon the payment of principal on the Authority Program Bonds and assuming that
the construction for the applicable project has been completed), if the Reserve
Security is equal to the Reserve Percentage of the principal amount of the SRF
Program Bonds outstanding, the Reserve Account or Reserve Fund is invested in
an investment agreement at a fixed interest rate during the calculation period
and earnings are reduced by the Administrative Fee payable to DNR.
Administrative Fee, Reserve Account, Reserve Fund, Reserve Percentage and
Reserve Security as used in this definition have the respective meanings set
forth in the bond indentures for the applicable Authority Program Bonds.
Sanitary
Sewer Revenue Account means the account created by Section 401A.
Sanitary
Sewer Revenues means all income and revenues derived by the City from the
Sanitary Sewer System, including investment and rental income, net proceeds
from business interruption insurance, sales tax revenues which have been
annually appropriated by the City or which are limited solely to the payment of
improvements to or expenses of the Sanitary Sewer System and any amounts
deposited in escrow in connection with the acquisition, construction,
remodeling, renovation and equipping of facilities to be applied during the
period of determination to pay interest on Sanitary Sewer System Revenue Bonds,
but excluding any profits or losses on the early extinguishment of debt or on
the sale or other disposition of investments or fixed or capital assets not in
the ordinary course of business.
State
means the State of Missouri.
Surplus
Account means the fund or account created or ratified and confirmed by Section
401.
Sanitary
Sewer System Revenue Bonds means collectively the Outstanding Senior Bonds, the
Bonds, Parity Bonds and all other revenue bonds which are payable from the Net
Sanitary Sewer Revenues.
Terms
Certificate means the Terms Certificate of the City, dated the date of
adoption of the Terms Ordinance, related to a purchase contract for the
Authority Bonds.
Terms
Ordinance means an ordinance of the City adopted prior to the issuance of the
Bonds, which establishes the principal amounts, maturities, interest rates and
sinking fund redemption provisions for the Bonds.
Trustee
means the trustee acting at any time as Trustee under the Indenture.
Section
102. Additional Provisions; Certain Terms and Provisions Not Applicable Under
Certain Circumstances. References in this Ordinance to the following words and
terms are applicable only if the Authority purchases the Bonds:
Administrative
Calculation Date Purchase
Agreement
Administrative
Fee Revolving
Fund Loan
Authority Revolving
Fund Agreement
Authority
Bonds SRF
Program
Authority
Program Bonds SRF
Program Bonds
Bondowner SRF
Subsidy
DNR Terms
Certificate
Trustee
The
provisions of Sections 210(b), 211, 403, 501, 502, 602 and 701(a) are
applicable only if the Authority purchases the Bonds.
ARTICLE II
AUTHORIZATION OF BONDS
Section
201. Authorization of Bonds. The Bonds are authorized and directed to be
issued in the Original Principal Amount for the purposes of this Ordinance.
Section
202. Security for Bonds.
(a) The
Bonds are special, limited obligations of the City payable solely from, and
secured by a pledge of, the Net Sanitary Sewer Revenues. The taxing power of
the City is not pledged to the payment of the Bonds. The Bonds do not
constitute a general obligation of the City or an indebtedness of the City within
the meaning of any constitutional, statutory or charter provision, limitation
or restriction.
(b) The
Bonds are junior and subordinate to the Outstanding Senior Bonds with respect
to payment of principal and interest from the Net Sanitary Sewer Revenues. The
Bonds are not payable from the Combined System Revenues derived from the
stormwater portion of the Combined System. In the event of any default in the
payment of the Outstanding Senior Bonds, the Combined System Revenues will be
applied solely to the payment of the principal of and interest on the
Outstanding Senior Bonds until the default is cured. The Bonds are issued on a
parity with the Outstanding Parity Bonds.
Section
203. Description of Bonds. The Bonds consist of fully registered bonds
without coupons, numbered from R-1 consecutively upward, in the denomination of
$1,000.00 or any integral multiple of $1,000.00. The Bonds will be issued in
substantially the form of Section 203A (with the parenthetical reference set
forth in the form of Bond if the Bonds are purchased by the Authority) and will
be registered, transferred and exchanged as provided in Section 206. The Bonds
are dated the Dated Date as set forth on the Bonds. The Bonds become due on
the dates and in the principal amounts (subject to optional and mandatory
redemption prior to maturity as provided in Article III) and bear interest at
the annual rates established by the Terms Ordinance. Interest is computed on
the basis of a 360-day year of twelve 30-day months from the Dated Date or from
the most recent Interest Payment Date to which interest has been paid or
provided for and is payable on each Interest Payment Date.
Section
203A. Form of Bond. The Bonds will be in substantially the following form,
with appropriate insertions and deletions as are approved by the Director of
Finance, which approval will be conclusively evidenced by the Director or
Finances signature on the Bond:
UNITED STATES OF AMERICA
STATE OF MISSOURI
Registered Registered
No. R-
$________
CITY OF KANSAS CITY, MISSOURI
SANITARY SEWER SYSTEM REVENUE
BOND
(STATE REVOLVING FUND PROGRAM)
SERIES 2000B
Interest
Rate Maturity
Date Dated Date
November
1, 2000
REGISTERED
OWNER:
PRINCIPAL
AMOUNT: **_____________________ DOLLARS**
THE
CITY OF KANSAS CITY, MISSOURI, a constitutional charter city and political
subdivision of the State of Missouri (the City), for value received, hereby
promises to pay to the Owner shown above, or registered assigns, the Principal
Amount shown above on the Maturity Date shown above, and to pay interest
thereon at the annual Interest Rate referenced above (computed on the basis of
a 360-day year of twelve 30-day months), payable semiannually on January 1 and
July 1 in each year, commencing July 1, 2001 (each an Interest Payment Date),
from the Dated Date shown above or from the most recent Interest Payment Date
to which interest has been paid or duly provided for until the Principal Amount
has been paid.
The
principal of and redemption premium, if any, on this Bond will be paid at
maturity or upon earlier redemption to the person in whose name this Bond is
registered at the maturity or redemption date, upon presentation and surrender
of this Bond at the principal office of STATE STREET BANK AND TRUST COMPANY OF
MISSOURI, N.A. in the City of St. Louis, Missouri (the Paying Agent). The
interest payable on this Bond on any Interest Payment Date will be paid by
check or draft mailed by the Paying Agent to the person in whose name this Bond
is registered on the registration books maintained by the Paying Agent at the
close of business on the Record Date. The Record Date is the fifteenth day
(whether or not a business day) of the calendar month next preceding the
Interest Payment Date. The principal of and redemption premium, if any, and
interest on the Bonds is payable by electronic transfer in immediately
available federal funds to a bank in the continental United States of America
pursuant to instructions from the Owner received by the Paying Agent prior to
the Record Date. The principal of, redemption premium, if any, and interest on
this Bond is payable in lawful money of the United States of America.
This
Bond is one of a duly authorized series of bonds of the City designated
Sanitary Sewer System Revenue Bonds (State Revolving Fund Program) Series
2000B aggregating the principal amount of $__________ (the Bonds), issued by
the City for the purpose of extending and improving the sanitary sewer portion
(together with all future improvements and extensions, the Sanitary Sewer
System) of its sanitary and stormwater sewer system, under the authority of
and in full compliance with Chapter 250 of the Revised Statutes of Missouri and
pursuant to an election duly held in the City and Ordinances ________ and
________ adopted by the governing body of the City (the Ordinance).
Certain
Bonds are subject to mandatory redemption and payment prior to maturity
pursuant to the mandatory redemption requirements of the Ordinance, at a
redemption price equal to 100% of the principal amount plus accrued interest to
the redemption date.
At
the option of the City, certain Bonds may be called for redemption and payment
prior to maturity in whole or in part on any date with the consent of the
Bondowner, as provided in the Ordinance.
Bonds
will be optionally redeemed in part in integral multiples of $5,000 (unless
otherwise approved in writing by the Bondowner) from the maturities selected by
the City with the prior written consent of the Bondowner. Upon redemption, the
sinking fund redemption amounts for each maturity will be proportionately
reduced, subject to rounding to integral multiples of $5,000 (unless otherwise
approved in writing by the Bondowner). The City will give written notice to
the Paying Agent, as trustee (the Trustee), designating the amount of each
maturity redeemed and the reduction in each sinking fund installment, subject
to verification by the Trustee. In exercising its option to redeem the Bonds,
the City will deposit with the Paying Agent, in addition to the principal of,
premium, if any, and interest on the Bonds, an additional premium equal to
30-days interest on the Bonds to be redeemed for an additional 30-day period.
The
Paying Agent will give notice of redemption, unless waived, by mailing a
redemption notice by registered or certified mail at least 45 days prior to the
date fixed for redemption, to the Owner of each Bond to be redeemed at the address
shown on the Bond Register. If notice of redemption has been given or waived,
the Bonds or portions of Bonds called for redemption will become due and
payable on the redemption date at the redemption price specified in the
notice. From and after the redemption date the Bonds called for redemption
will cease to bear interest date unless the City defaults in the payment of the
redemption price.
The
Bonds are limited obligations of the City payable solely from, and secured as
to the payment of principal and interest by a pledge of, the Net Sanitary Sewer
Revenues (as defined in the Ordinance). The taxing power of the City is not
pledged to the payment of the Bonds either as to principal or interest. The
Bonds do not constitute a general obligation of the City or an indebtedness of
the City within the meaning of any constitutional, statutory or charter
provision, limitation or restriction. Under the conditions set forth in the
Ordinance, the City has the right to issue additional parity bonds payable
from, and secured by, the Net Sanitary Sewer Revenues.
The
Bonds are junior and subordinate to the Outstanding Senior Bonds with respect
to payment of principal and interest from the Net Sanitary Sewer Revenues. The
Bonds are not payable from the stormwater portion of the Combined System
Revenues (as defined in the Ordinance). In the event of any default in the
payment of the Outstanding Senior Bonds, the Combined System Revenues will be
applied solely to the payment of the principal of and interest on the
Outstanding Senior Bonds until the default is cured. The Bonds are issued on a
parity with respect to payment of principal and interest from the Net Sanitary
Sewer Revenues and in all other respects with the Outstanding Parity Bonds (as
defined in the Ordinance).
The
City covenants with the Owner of this Bond to keep and perform all covenants
and agreements contained in the Ordinance, and the City will fix, establish,
maintain and collect rates, fees and charges for the use and services furnished
by or through the Sanitary Sewer System to produce Revenues sufficient to pay
the operation and maintenance costs of the Sanitary Sewer System, pay the
principal of and interest on the Bonds and provide reasonable and adequate
reserve funds. Reference is made to the Ordinance for a description of the
agreements made by the City with respect to the collection, segregation and
application of the Revenues, the nature and extent of the security for the
Bonds, the rights, duties and obligations of the City with respect to the
Bonds, and the rights of the Owners.
The
Bonds are issuable in the form of fully registered Bonds without coupons in the
denomination of $1,000 or any integral multiple of $1,000.
This
Bond may be transferred or exchanged, as provided in the Ordinance, only upon
the registration books kept for that purpose at the above-mentioned office of
the Paying Agent. Upon surrender of any Bond at the principal office of the
Paying Agent, the Paying Agent will transfer or exchange the Bond for a new
Bond or Bonds in any authorized denomination of the same maturity and in the
same aggregate principal amount as the Bond which was presented for transfer or
exchange. All Bonds presented for transfer or exchange must be accompanied by
a written instrument of transfer or authorization for exchange, in a form and
with guarantee of signature satisfactory to the Paying Agent, duly executed by
the Owner or by the Owners authorized agent. All Bonds presented for transfer
or exchange must be surrendered to the Paying Agent for cancellation. For
every exchange or transfer of Bonds the City or the Paying Agent may levy a
charge sufficient to reimburse it for any tax, fee or other governmental charge
required to be paid for the exchange or transfer. The charge must be paid by
the person requesting the exchange or transfer. Payment of the charge is a
condition precedent to the exchange or transfer.
This
Bond will not be valid or be entitled to any security or benefit under the
Ordinance until the Certificate of Authentication has been executed by the
Paying Agent.
IT
IS HEREBY CERTIFIED AND DECLARED that all acts, conditions and things required
to exist, happen and be performed precedent to the issuance of the Bonds have
existed, happened and been performed in due time, form and manner as required
by law, and that before the issuance of the Bonds, provision has been duly made
for the collection, segregation and application of the income and revenues of
the Sanitary Sewer System as provided in the Ordinance.
IN
WITNESS WHEREOF, the City of Kansas City, Missouri, has executed this Bond by
causing it to be signed by the manual or facsimile signature of its Mayor,
attested by the manual or facsimile signature of its City Clerk, and
countersigned by the manual or facsimile signature of its Director of Finance,
with its official seal affixed or imprinted.
CERTIFICATE
OF AUTHENTICATION CITY OF KANSAS CITY, MISSOURI
This
Bond is one of the Bonds
of the
issue described in the
within-mentioned
Ordinance. By _________________________
Mayor
Registration
Date: _________________
STATE
STREET BANK AND TRUST
COMPANY OF MISSOURI, N.A.,
Paying Agent (Seal)
ATTEST:
By
Authorized Signatory City Clerk
COUNTERSIGNED
_____________________________
Director
of Finance
__________________________________________________________________
RECORD
OF PRINCIPAL PAYMENTS AND PREPAYMENTS
Under
the provisions of the Ordinance, payments of the principal installments of this
Bond and partial prepayments of the principal of this Bond may be made directly
to the Bondowner without surrender of this Bond to the Paying Agent.
Accordingly, any purchaser or other transferee of this Bond should verify with
the Paying Agent the principal of this Bond outstanding prior to any purchase
or transfer, and the records of the Paying Agent are conclusive.
__________________________________________________________________
ASSIGNMENT
FOR
VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
______________________________________________________
Print
or Type Name of Transferee
the
within Bond and all rights thereunder, and hereby irrevocably constitutes and
appoints ______ _______________________________________ agent to transfer the
within Bond on the registration books kept by the Paying Agent, with full power
of substitution in the premises.
_______________________________________
Dated: By:
___________________________________
____________________________
NOTICE: The signature to this assignment must correspond
with the name of the Owner as it appears upon the face of the within Bond in
every particular.
Signature
Guaranteed By:
, Authorized Officer
State
Street Bank and Trust Company
of Missouri, N.A.
NOTICE: Signature(s) must be guaranteed by an eligible
guarantor institution as defined by SEC Rule 17Ad-15 (17 CFR 240.17Ad-15).
______________________________________________________
Section
204. Designation of Paying Agent. The Trustee is designated as the Citys
paying agent for the payment of the Bonds and bond registrar for the
registration, transfer and exchange of Bonds (the Paying Agent). The Paying
Agent will not be paid any additional fees for its services under this
Ordinance.
Section
205. Method and Place of Payment of Bonds.
(a) Payment
of the Bonds will be made with any coin or currency that is legal tender for
the payment of debts due the United States of America on the payment date.
(b) Each
payment of principal of and redemption premium, if any, payable on each Bond
will be made at maturity or upon earlier redemption to the Owner shown in the
Bond Register at the maturity or optional redemption date of each Bond, upon
presentation and surrender of the Bond at the principal office of the Paying
Agent. The payment of interest payable on each Bond on any Interest Payment
Date will be made by check or draft mailed by the Paying Agent to the address
of the Owner shown in the Bond Register. The principal of and redemption premium,
if any, and interest on the Bonds is payable by electronic transfer in
immediately available federal funds to a bank in the continental United States
of America pursuant to instructions from any Owner received by the Paying Agent
prior to the Record Date.
(c) The
Paying Agent will keep a record of payment of principal of, redemption premium,
if any, and interest on all Bonds and, at least annually at the request of the
City, will forward a copy or summary of the record of payments to the City.
Section
206. Registration, Transfer and Exchange of Bonds. Section 206. Registration,
Transfer and Exchange of Bonds
(a) The
City will cause the Paying Agent to keep the Bond Register. Each Bond when
issued will be registered in the name of the Owner on the Bond Register. Bonds
will be transferred and exchanged only upon the Bond Register.
(b) Upon
surrender of any Bond at the principal office of the Paying Agent, the Paying
Agent will transfer or exchange the Bond for a new Bond or Bonds in any
authorized denomination of the same maturity and in the same aggregate
principal amount as the Bond which was presented for transfer or exchange. All
Bonds presented for transfer or exchange must be accompanied by a written
instrument of transfer or authorization for exchange, in a form and with
guarantee of signature satisfactory to the Paying Agent, duly executed by the
Owner or by the Owners authorized agent. All Bonds presented for transfer or
exchange must be surrendered to the Paying Agent for cancellation.
(c) For
every exchange or transfer of Bonds the City or the Paying Agent may levy a
charge sufficient to reimburse it for any tax, fee or other governmental charge
required to be paid for the exchange or transfer. The charge must be paid by
the person requesting the exchange or transfer. Payment of the charge is a
condition precedent to the exchange or transfer.
(d) The
City and the Paying Agent will treat the person in whose name any Bond is
registered as the absolute owner of the Bond, whether or not payment of the
Bond is overdue, for the purpose of receiving payment of the principal of,
redemption premium, if any, and interest on the Bond and for all other
purposes. All payments made to any Owner or upon the Owners order will be
valid and effectual to satisfy and discharge the Citys liability for payment
of the Bond to the extent of the sum or sums paid. Neither the City nor the
Paying Agent will be affected by any notice to the contrary.
(e) At
reasonable times and under reasonable rules established by the Paying Agent,
the Owners of 25% or more in principal amount of the Outstanding Bonds, or
their representative designated in a manner satisfactory to the Paying Agent,
may inspect and copy the Bond Register.
Section
207. Execution, Authentication and Delivery of Bonds.
(a) Each
Bond must be signed by the manual or facsimile signature of the Mayor and
attested by the manual or facsimile signature of the City Clerk, and have the
official seal of the City affixed or imprinted. If any officer whose manual or
facsimile signature appears on any Bond ceases to be an officer before the
delivery of any Bond signed by the officer, the manual or facsimile signature
on the Bond will be valid and sufficient for all purposes of this Ordinance.
(b) The
Mayor and the City Clerk are directed to prepare and execute the Bonds as
specified in this Article, and when executed, to deliver the Bonds to the
Paying Agent for authentication. Upon authentication, the Paying Agent will
deliver the Bonds to the Bondowner, upon payment of the purchase price for the
Bonds.
(c) Each
Bond will be authenticated by any authorized officer or employee of the Paying
Agent. No Bond is entitled to any security or benefit under this Ordinance or
be valid or obligatory for any purpose until authenticated by the Paying Agent.
Section
208. Mutilated, Destroyed, Lost and Stolen Bonds.
(a) If
(i) any mutilated Bond is surrendered to the Paying Agent, or the City and the
Paying Agent receive evidence to their satisfaction of the mutilation,
destruction, loss or theft of any Bond, and (ii) there is delivered to the City
and the Paying Agent security or indemnity as required by them, in the absence of
notice to the City or the Paying Agent that the Bond has been acquired by a
bona fide purchaser, the City will execute and the Paying Agent will register
and deliver, in exchange for or in lieu of any mutilated, destroyed, lost or
stolen Bond, a new Bond of the same maturity and of like tenor and principal
amount. If the Bond has become or is about to become due, the City may pay the
Bond instead of issuing a new Bond.
(b) Upon
the issuance of any new Bond under this Section, the City may require the payment
by the Owner of a sum sufficient to cover any tax or other governmental charge
imposed and any other expenses (including the fees and expenses of the Paying
Agent) connected with the issuance of the Bond.
(c) Every
new Bond issued pursuant to this Section in lieu of any mutilated, destroyed,
lost or stolen Bond will constitute a replacement of the prior obligation of
the City, whether or not the mutilated, destroyed, lost or stolen Bond is
enforceable by anyone at any time, and will be entitled to all the benefits of
this Ordinance equally and ratably with all other Outstanding Bonds.
Section
209. Cancellation and Destruction of Bonds Upon Payment. All Bonds which have
been paid or redeemed or which have otherwise been surrendered to the Paying
Agent, either at or before maturity, will be cancelled immediately upon the
payment or redemption and the Paying Agents receipt of the Bonds. Cancelled
Bonds will be periodically destroyed by the Paying Agent in accordance with the
customary practice of the Paying Agent.
Section
210. Sale of the Bonds; Authorization and Execution of Documents.
(a) The
sale of the Bonds in accordance with the terms of the Notice of Bond Sale dated
October 20, 2000 is approved. The Director of Finance is authorized to approve
the award of the Bonds for the best bid received in accordance with the Notice
of Bond Sale.
(b) The
City is authorized to enter into the Purchase Agreement and the Revolving Fund
Agreement, in substantially the forms presented to the Governing Body. The
Director of Finance is authorized to execute the Purchase Agreement, the
Revolving Fund Agreement and the Terms Certificate for and on behalf of and as
the act and deed of the City, with changes approved by the Director of Finance,
which approval will be conclusively evidenced by the Director of Finances
signature. The Mayor and the Director of Finance are further authorized and
directed to execute other documents, certificates and instruments that are necessary
or desirable to carry out the intent of this Ordinance. The City Clerk is
authorized and directed to attest the execution of the Purchase Agreement and
the Revolving Fund Agreement and any other documents, certificates and
instruments that are necessary or desirable to carry out the intent of this
Ordinance, the Terms Ordinance and the Terms Certificate.
Section
211. Administrative Fee and Other Fees; Revolving Fund Loan.
(a) Subject
to Section 202, the City will pay to the Trustee for deposit in the
Administrative Expense Fund, within 30 days after receipt of a statement from
the Trustee (i) the Administrative Fee, (ii) the Citys Allocable Portion of
the Master Trustees Disclosure Fee, and (iii) the Citys Allocable Portion of
the Trustees Fee.
(b) The
City is authorized to receive the Revolving Fund Loan under the terms of the
Revolving Fund Agreement. By this Ordinance, the City assigns the proceeds of
the Revolving Fund Loan, as and when received, to the Authority.
ARTICLE III
REDEMPTION OF BONDS
Section
301. Mandatory Sinking Fund Redemption. The Term Bonds in the Terms Ordinance
will be redeemed in part on the dates and in the principal amounts in the Terms
Ordinance, at a redemption price equal to 100% of the principal amount redeemed
plus accrued interest to the redemption date.
Section
302. Optional Redemption. At the option of the City, certain Bonds may be
called for redemption and payment prior to maturity in whole or in part on the
dates and at the redemption prices set forth in the Terms Ordinance. Bonds
will be optionally redeemed in part in integral multiples of $5,000.00 (unless
otherwise approved in writing by the Bondowner) from the maturities selected by
the City with the prior written consent of the Bondowner. Upon redemption, the
sinking fund redemption amounts for each Term Bond specified in the Terms
Ordinance will be proportionately reduced, subject to rounding to integral
multiples of $5,000.00 (unless otherwise approved in writing by the Bondowner).
The City will give written notice to the Trustee designating the amount of each
maturity redeemed and the reduction in each sinking fund redemption amount,
subject to verification by the Trustee. In exercising its option to redeem the
Bonds, the City will deposit with the Paying Agent, prior to the redemption
date, an additional premium equal to 30-days interest on the Bonds to be
redeemed.
Section
303. Selection of Bonds to Be Redeemed. If all Outstanding Bonds are held by
the Bondowner, the redemption of the Bonds in part will be reflected in the
records maintained by the Paying Agent. If the Bonds are held by any Owner
other than the Bondowner, the City, with the prior written consent of the
Paying Agent and the Owners, will establish procedures for the selection of
Bonds upon partial redemption.
Section
304. Notice and Effect of Call for Redemption.
(a) If
all Outstanding Bonds are held by the Bondowner, no notice of the mandatory
sinking fund redemption of Bonds is required to be given. If the Bonds are
held by any Owner other than the Bondowner or if Bonds are being optionally
redeemed, notice of redemption will be given in the manner described below.
Unless waived by any Owner of Bonds to be redeemed, the Paying Agent, on behalf
of the City, will give notice by mailing a redemption notice by registered or
certified mail, at least 45 days prior to the date fixed for redemption, to the
Owner of Bonds to be redeemed at the address shown on the Bond Register.
(b) All
redemption notices will be dated and include the following information:
(1) the
redemption date,
(2) the redemption price, consisting
of the principal amount, redemption premium, if any, and interest to the
redemption date,
(3) if less than all Outstanding Bonds
are to be redeemed, the identification (and, in the case of partial redemption,
the respective principal amounts) of the Bonds to be redeemed,
(4) a statement that on the redemption
date the redemption price will become due and payable upon each Bond or portion
of a Bond called for redemption, and that interest ceases to accrue on the
redeemed amount from and after the redemption date, and
(5) the address of the principal
office of the Paying Agent where the Bonds must be surrendered for payment of
the redemption price.
(c) If
notice of redemption has been given or waived, the Bonds or portions to be
redeemed will become due and payable on the redemption date at the redemption
price specified in the notice. From and after the redemption date (unless the
City defaults in the payment of the redemption price), the called Bonds will
cease to bear interest. Upon the surrender of Bonds for payment of the
redemption price in accordance with the notice, the Paying Agent will pay the
redemption price to the applicable Owners. Upon the Paying Agents receipt of
any Bond being partially redeemed, the Paying Agent will prepare a new Bond or
Bonds of the same maturity in the amount of the unpaid principal.
ARTICLE IV
RATIFICATION OF FUNDS AND
ACCOUNTS
Section
401. Ratification of Funds and Accounts.
(a) The
separate funds and accounts created in, or ratified and confirmed by, the
Series 1992A Ordinance known respectively as the:
(1) Sewer
Fund (the Combined System Revenue Fund);
(2) Kansas City Sewerage System
Refunding and Improvement Revenue Bonds, Series 1992, Bond Reserve Account (the
Series 1992A Reserve Account);
(3) Kansas City Sewerage System
Refunding and Improvement Revenue Bonds, Series 1992, Principal and Interest
Account (the Series 1992A Debt Service Account); and
(4) Kansas City Sewerage System
Refunding and Improvement Revenue Bonds, Series 1992, Surplus Account (the
Combined System Surplus Account);
are
ratified and confirmed.
(b) The
separate accounts created or acknowledged under Sections 501(e) and 503 of the
Series 1992B Ordinance are acknowledged:
(1) Sewerage System Depreciation and
Replacement Account (the Combined System Depreciation and Replacement
Account);
(2) Construction Account;
(3) Reserve Account (the Series 1992B Reserve
Account);
(4) Debt Service Account (the Series 1992B Debt
Service Account);
(5) Principal Account (the Series 1992B Principal
Account); and
(6) Interest Account (the Series 1992B Interest
Account).
(c) The
separate accounts acknowledged under Section 503 of the Series 1995A Ordinance
are acknowledged:
(1) Construction
Loan Fund;
(2) Reserve
Fund (the Series 1995A Reserve Fund);
(3) Debt
Service Fund (the Series 1995A Debt Service Fund);
(4) Principal
Account (the Series 1995A Principal Account); and
(5) Interest
Account (the Series 1995A Interest Account).
(d) The
separate accounts acknowledged under Section 503 of the Series 1996A Ordinance
are acknowledged:
(1) Construction
Loan Fund;
(2) Reserve
Fund (the Series 1996A Reserve Fund);
(3) Debt
Service Fund (the Series 1996A Debt Service Fund);
(4) Principal
Account (the Series 1996A Principal Account); and
(5) Interest
Account (the Series 1996A Interest Account).
(e) The
separate accounts acknowledged under Section 403 of the Series 1997A Ordinance
are acknowledged:
(1) Sewer
System Project Account;
(2) Sewer
System Reserve Account (the Series 1997A Reserve Account);
(3) Sewer System Debt Service Account
(the Series 1997A Debt Service Account);
(4) Sewer
System Principal Account (the Series 1997A Principal Account); and
(5) Sewer System Interest Account (the
Series 1997A Interest Account), the Public Works Principal Account and the
Public Works Interest Account.
(f) The
separate accounts acknowledged under Section 403 of the Series 1998A Ordinance
are acknowledged:
(1) Construction
Account;
(2) Reserve Account (the Series 1998A
Reserve Account, the Series 1998A Reserve Account, the Series 1992A Reserve
Account, the Series 1992B Reserve Account, the Series 1995A Reserve Fund, the
Series 1996A Reserve Fund and the Series 1997A Reserve Account are collectively
the Outstanding Senior Bond Reserve Account);
(3) Debt
Service Account (the Series 1998A Debt Service Account);
(4) Principal
Account (the Series 1998A Principal Account); and
(5) Interest Account (the Series
1998A Interest Account, the Series 1998A Interest Account, the Series 1998A
Principal Account, the Series 1998A Debt Service Account, the Series 1997A
Interest Account, the Series 1997A Principal Account, the Series 1997A Debt
Service Account, the Series 1996A Interest Account, the Series 1996A Principal
Account, the Series 1996A Debt Service Fund, the Series 1995A Interest Account,
the Series 1995A Principal Account, the Series 1995A Debt Service Fund, the
Series 1992B Debt Service Account, the Series 1992B Principal Account, the
Series 1992B Interest Account and the Series 1992A Debt Service Account are
collectively the Outstanding Senior Bond Debt Service Account).
(g) The
separate accounts acknowledged under Section 401A and Section 403 of the Series
1999A Ordinance are acknowledged:
(1) Sanitary Sewer Revenue Account
within the Combined System Revenue Fund (the Sanitary Sewer Revenue Account);
(2) Stormwater Sewer Revenue Account
within the Combined System Revenue Fund (the Stormwater Sewer Revenue
Account);
(3) Sanitary Sewer System Depreciation
and Replacement Account within the Combined System Depreciation and Replacement
Account (the Sanitary Sewer Depreciation and Replacement Account); and
(4) Stormwater Sewer Depreciation and
Replacement Account within the Combined System Depreciation and Replacement
Account;
(5) Sanitary Sewer System Surplus
Account within the Combined System Surplus Account (the Sanitary Sewer Surplus
Account); and
(6) Stormwater Sewer Surplus Account
within the Combined System Surplus Account;
(7) Construction
Account;
(8) Reserve Account (the Series 1999A
Debt Service Reserve Account);
(9) Debt Service Account (the Series
1999A Debt Service Account);
(10) Principal Account (the Series
1999A Principal Account); and
(11) Interest
Account (the Series 1999A Interest Account).
(h) The
separate accounts acknowledged under Section 403 of the Series 2000A Ordinance
are acknowledged:
(1) Construction
Account;
(2) Reserve Account (the Series 2000A
Reserve Account, the Series 2000A Reserve Account and the Series 1999A Reserve
Account are collectively the Outstanding Parity Bond Debt Service Reserve
Account);
(3) Debt Service Account (the Series
2000A Debt Service Account);
(4) Principal Account (the Series
2000A Principal Account); and
(5) Interest Account (the Series
2000A Interest Account, the Series 2000A Interest Account, the Series 2000A
Principal Account, the Series 2000A Debt Service Account, the Series 1999A
Interest Account, the Series 1999A Principal Account and the Series 1999A Debt
Service Account are collectively the Outstanding Parity Bond Debt Service
Account).
Section
402. Administration of Funds and Accounts. The funds and accounts referred to
in subparagraphs (a)(1) and (4) and (b)(1) of Section 401 will be maintained
and administered by the City while any of the Bonds, the Outstanding Senior
Bonds and the Outstanding Parity Bonds are Outstanding. The funds and accounts
referred to in subparagraphs (a)(2) and (3) of Section 401 will be maintained
and administered by the City while any of the Series 1992A Bonds remain
Outstanding and unpaid. The accounts referred to in paragraph (b) of Section
401 (other than subparagraph (b)(1)) will be maintained and administered while
any of the Series 1992B Bonds remain Outstanding and unpaid. The accounts
referred to in paragraph (c) of Section 401 will be maintained and
administered while any of the Series 1995A Bonds remain Outstanding and
unpaid. The accounts referred to in paragraph (d) of Section 401 will be
maintained and administered while any of the Series 1996A Bonds remain
Outstanding and unpaid. The accounts referred to in paragraph (e) of Section
401 will be maintained and administered while any of the Series 1997A Bonds
remain Outstanding and unpaid. The accounts referred to in paragraph (f) of
Section 401 will be maintained and administered while any of the Series 1998A
Bonds remain Outstanding and unpaid. The funds and accounts referred to in subparagraphs
(g)(1), (3) and (5) Section 401 will be maintained and administered by the City
while any of the Bonds and the Outstanding Parity Bonds are Outstanding. The
accounts referred to in subparagraphs (g)(7), (8), (9), (10) and (11) of
Section 401 will be maintained and administered while any of the Series 1999A
Bonds remain Outstanding and unpaid. The accounts referred to in subparagraphs
(h)(1), (2), (3), (4) and (5) of Section 401 will be maintained and
administered while any of the Series 2000A Bonds remain Outstanding and unpaid.
Section
403. Acknowledgment of Accounts.
(a) The
City acknowledges the creation of the following accounts for the City held by
the Trustee under the Indenture:
(1) Construction
Account;
(2) Reserve
Account;
(3) Debt
Service Account;
(4) Principal
Account; and
(5) Interest
Account.
(b) The
City further acknowledges that certain amounts will be transferred to the Costs
of Issuance Fund and the Administrative Expense Fund under the Indenture in
satisfaction of certain City obligations under this Ordinance, the Purchase
Agreement and the Revolving Fund Agreement.
ARTICLE V
APPLICATION OF BOND PROCEEDS
Section
501. Disposition of Bond Proceeds. The proceeds received from the sale of the
Bonds, including any premium and accrued interest, will be deposited
simultaneously with the delivery of the Bonds, as follows:
(1) into the Costs of Issuance Fund an
amount not to exceed $275,000.00 for Costs of Issuance as approved by the
Director of Finance;
(2) into the Interest Account the
accrued interest on the Bonds; and
(3) into the Construction Account the
remaining proceeds of the Bonds.
Section
502. Assignment and Application of Moneys in the Construction Account.
(a) By
this Ordinance, the City assigns the proceeds of the Bonds held in the
Construction Account to the Bondowner to secure the Citys obligations under
this Ordinance. Moneys in the Construction Account will be disbursed to the
City for the sole purpose of paying the cost of extending and improving the
Sanitary Sewer System in accordance with the plans and specifications prepared
by the Consulting Engineer, previously approved by the Governing Body and DNR
and on file in the office of the City Clerk, including any alterations in or
amendments to the plans and specifications deemed advisable by the Consulting
Engineer and approved by the Director of Water Services of the City and DNR.
(b) Requisitions
will be submitted for withdrawals from the Construction Account in accordance
with Article III of the Purchase Agreement.
ARTICLE VI
APPLICATION OF REVENUES
Section
601. Combined System Revenue Fund and Sanitary Sewer Revenue Account.
(a) The
City covenants and agrees that prior to the termination of Section 601A, all
Combined System Revenues will be deposited into the Combined System Revenue
Fund when received. The Combined System Revenues will be segregated from all
other moneys, revenues, funds and accounts of the City.
(b) All
moneys deposited in the Combined System Revenue Fund will be designated as
having been derived from the ownership and operation of either the stormwater
sewers portion of the Combined System or the Sanitary Sewer System. All
Sanitary Sewer System Revenues will be deposited in the Sanitary Sewer Revenue
Account. All revenues of the stormwater sewers portion of the Combined System
will be transferred to the Stormwater Sewer Revenue Account.
(c) From
and after the termination of Section 601A, the Sanitary Sewer Revenue Account
will be administered and applied solely for the purposes and in the manner
provided in this Ordinance and any Parity Ordinance
Section
601A. Application of Moneys Under Outstanding Senior Bond Ordinance.
(a) The
provisions of this Section 601A will remain in effect as long as the
Outstanding Senior Bonds remain outstanding within the meaning of the
Outstanding Senior Bond Ordinance.
(b) Prior
to the payment in full of the Outstanding Senior Bonds, the City will apply
moneys in the Sanitary Sewer Revenue Account on the first day of each month,
the amounts required by the Outstanding Senior Bond Ordinance in the order as
follows: FIRST, the estimated cost of operating and maintaining the Combined
System during the ensuing 30-day period (after the application of moneys in the
Stormwater Sewer Revenue Account to the operation and maintenance of the
stormwater sewers portion of the Combined System), SECOND, to the Outstanding
Senior Bond Debt Service Account, and THIRD, to the Outstanding Senior Bond
Debt Service Reserve Account.
(c) If
moneys in the Sanitary Sewer Revenue Account are not sufficient to make the
transfers described in clauses SECOND and THIRD of paragraph (b), the City will
apply moneys in the Stormwater Sewer Revenue Account.
Section
602. Application of Moneys in Sanitary Sewer System Funds and Accounts.
(a) After
the application of moneys under Section 601A, the City will apply moneys in the
Sanitary Sewer Revenue Account on the dates, in the amounts and in the order as
follows:
(1) after the termination of Section
601A, on the first day of each month the estimated cost of operating and
maintaining the Sanitary Sewer System during the ensuing 30-day period;
(2) on the 25th day of each month, on
a parity basis (i) to the Outstanding Parity Bond Debt Service Account the
amount required under the Outstanding Parity Bond Ordinance, and (ii) the
following amounts to the Trustee for credit to the Interest Account and the
Principal Account:
(A) on January 25, 2001 to and
including June 25, 2001, to the Interest Account 1/6 of the amount of interest
on the Bonds due on July 1, 2001 less accrued interest deposited to the Interest
Account; and on July 25, 2001 and thereafter 1/6 of the amount of interest due
on the Bonds on the next Interest Payment Date, with these monthly payments to
be reduced as follows:
(I) the balance in the Debt Service
Account on an Interest Payment Date after the payment of the principal of and
interest due on the Authority Bonds on the Interest Payment Date will be
credited against the next succeeding monthly payment or payments; and
(II) the projected investment earnings
on the Construction Account and the Reserve Account for the current Interest
Period and actual investment earnings for the prior Interest Period reduced by
estimated earnings for the preceding Interest Period that were previously
credited, as set forth in the Trustees semiannual notice to the City, will be
credited in equal installments against the monthly payments due prior to the
next Interest Payment Date; and
(B) on January 25, 2001 to and
including June 25, 2001 to the Principal Account 1/6 of the principal due on
the Bonds on July 1, 2001 and on July 25, 2001 and each monthly payment date
thereafter, to the Principal Account 1/12 of the principal due on the Bonds on
the next succeeding principal payment date, whether at maturity or upon
mandatory sinking fund redemption. If the Initiation of Operation specified in
the certificate delivered by the City under Section 3.5 of the Purchase
Agreement is earlier than the expected Initiation of Operation on the Citys
signature page to the Purchase Agreement, (i) the first monthly installment of
principal will be paid no later than the monthly payment date which is not more
than 12 months after the Initiation of Operation, and (ii) on the monthly
payment date which is not more than 20 years after the Initiation of Operation,
all remaining unpaid principal installments will be paid;
(3) on the dates required by Section
211(a), to the Trustee, for deposit to the Administrative Expense Fund, the
amount required to pay the Administrative Fee, the Citys Allocable Portion of
the Trustees Fee and the Citys Allocable Portion of the Master Trustees
Disclosure Fee;
(4) on the first day of each month, to
the Outstanding Parity Bond Debt Service Reserve Account as required by the
Outstanding Parity Bond Ordinance and, in the event the Trustee has withdrawn
moneys from the Reserve Account (other than investment earnings or the amount
transferred from the Reserve Account upon the payment of principal on the
Bonds), to the Reserve Account all available moneys until the Reserve Account has
been replenished; and
(5) on the first day of each month the
remaining balance to the Sanitary Sewer Surplus Account.
(b) If
the amount in the Sanitary Sewer Revenue Account is not sufficient to make the
payments at the time required to be made by the City to the Reserve Account and
to the Outstanding Parity Bond Debt Service Reserve Account, the City will
divide the balance in the Sanitary Sewer Revenue Account between the Reserve
Account and the Outstanding Parity Bond Debt Service Reserve Account on a
proportionate basis (based upon the outstanding principal amounts of the Bonds
and the Outstanding Parity Bonds).
(c) Moneys
in the Sanitary Sewer Surplus Account are to be expended for the following
purposes as determined by the Governing Body:
(1) paying the cost of the operation,
maintenance and repair of the Sanitary Sewer System to the extent necessary
after the application of the moneys in the Sanitary Sewer Depreciation and
Replacement Account;
(2) paying the cost of extending,
enlarging or improving the Sanitary Sewer System;
(3) preventing default in,
anticipating payments into or increasing the amounts in the accounts confirmed
or established in Section 401, the Principal Account, the Interest Account, the
Reserve Account or the Sanitary Sewer System Depreciation and Replacement
Account, or establishing or increasing the amount of any debt service account
or debt service reserve account created by the City for the payment of any
Sanitary Sewer System Revenue Bonds subsequently issued; or
(4) redeeming and paying prior to
maturity, or, at the option of the City, purchasing in the open market at the
best price obtainable not exceeding the call price (if any bonds are callable),
the Bonds, the Outstanding Senior Bonds (with the prior written consent of
DNR), the Outstanding Parity Bonds or any other Sanitary Sewer System Revenue
Bonds of the City hereafter issued under the conditions hereinafter specified
and standing on a parity with the Bonds, including principal, redemption
premium, if any, and interest.
(d) No
moneys derived by the City from the Sanitary Sewer System will be diverted to
the general governmental or municipal functions of the City.
Section
603. Deficiency of Payments into Funds and Accounts.
(a) If
the Revenues are insufficient to make any payment on any date specified in this
Article, the City will make good the amount of the deficiency by making
additional payments out of the first available Revenues for application in the
order specified in Section 602.
(b) If
the moneys in the Outstanding Senior Bond Debt Service Account, the Outstanding
Senior Bond Debt Service Reserve Account, the Outstanding Parity Bond Debt
Service Account, the Outstanding Parity Bond Debt Service Reserve Account, the
Principal Account, the Interest Account or the Reserve Account are not
sufficient to pay the principal of and interest on the Outstanding Senior
Bonds, the Outstanding Parity Bonds and the Bonds as and when the same become
due, the City will apply moneys in the Sanitary Sewer Surplus Account and the
Depreciation and Replacement Account first to the Outstanding Senior Bond Debt
Service Account and the balance on a proportionate basis (based upon the
outstanding principal amounts of the Bonds and the Outstanding Parity Bonds) to
the Principal Account, the Interest Account and the Outstanding Parity Bond
Debt Service Account to prevent any default in the payment of the principal of
and interest on the Outstanding Senior Bonds, the Bonds and the Outstanding
Parity Bonds.
Section
604. Transfer of Funds to Paying Agent. The Director of Finance is authorized
and directed to make the payments to the Principal Account and the Interest
Account and the debt service accounts as provided in Section 602, and, to the
extent necessary to prevent a default in the payment of the Sanitary Sewer
System Revenue Bonds, from the debt service reserve accounts, the Reserve
Account, the Sanitary Sewer Surplus Account and the Sanitary Sewer Depreciation
and Replacement Account as provided in Sections 602 and 603, sums sufficient to
pay the Sanitary Sewer System Revenue Bonds when due, and to forward amounts to
the Paying Agent in a manner which ensures the Paying Agent will have
sufficient available funds on or before the second Business Day immediately
preceding the dates when payments on the Bonds are due. Upon the payment of
all principal and interest on the Bonds, the Paying Agent will return any
excess funds to the City. Except as otherwise provided in the Indenture, all
moneys deposited by the City with the Paying Agent are subject to the
provisions of this Ordinance.
ARTICLE VII
DEPOSIT AND INVESTMENT OF MONEYS
Section
701. Investment of Moneys.
(a) Moneys
in the Interest Account, the Principal Account, the Construction Account, the
Debt Service Account and the Reserve Account are assigned by the City to the
Authority to secure the Citys obligations under this Ordinance and the City
acknowledges that moneys in the Interest Account, the Principal Account, the
Debt Service Account and the Reserve Account will be invested by the Authority,
subject to the Arbitrage Instructions, in Investment Securities in accordance
with Section 4.9 of the Indenture. Moneys in the Construction Account will be
invested by the Trustee at the written direction of the City, subject to the
Arbitrage Instructions, in Investment Securities in accordance with Section 4.9
of the Indenture. Moneys in each of the other funds and accounts created or
ratified and confirmed by this Ordinance may be invested by the City in
obligations as may be permitted by law, but no investment will be made for a
period extending longer than the date when the moneys invested may be needed.
All earnings on any investments held in any fund or account will accrue to the
applicable fund or account. Earnings on moneys in the Interest Account, the
Principal Account, the Construction Account, the Debt Service Account and the
Reserve Account will be transferred or applied by the Trustee in accordance
with Article IV of the Indenture. In determining the amount held in any fund
or account under this Ordinance, obligations will be valued at the lower of
cost or market value. If the amount in any fund or account held within the
Treasury of the City is greater than the required amount, the City may transfer
the excess to the Sanitary Sewer Revenue Account.
(b) If
the Outstanding Senior Bonds and the Outstanding Parity Bonds are outstanding,
any investments made pursuant to this Section are subject to the applicable
restrictions in the Outstanding Senior Bond Ordinance and the Outstanding
Parity Bond Ordinance.
ARTICLE VIII
PARTICULAR COVENANTS OF THE CITY
Section
801. Efficient and Economical Operation. The City will continuously own and
will operate the Sanitary Sewer System in an efficient and economical manner
and will keep and maintain the Sanitary Sewer System in good repair and working
order.
Section
802. Rate Covenant. The City will fix, establish, maintain and collect rates
and charges for the use and services furnished by or through the Sanitary Sewer
System to produce income and revenues sufficient to (a) pay the costs of the
operation and maintenance of the Sanitary Sewer System; (b) pay the principal
of and interest on the Bonds as and when due; (c) enable the City to have in
each Fiscal Year Net Sanitary Sewer Revenues Available for Debt Service of not
less than 110% of the amount required to be paid by the City in the Fiscal Year
on account of both principal of and interest on all Sanitary Sewer System
Revenue Bonds at the time outstanding, provided that interest on any SRF
Program Bonds will be reduced by the SRF Subsidy, if any; and (d) provide
reasonable and adequate reserves for the payment of the Bonds and the interest
thereon and for the protection and benefit of the Sanitary Sewer System as
provided in this Ordinance. The City will require the prompt payment of
accounts for service rendered by or through the Sanitary Sewer System and will
promptly take whatever action is legally permissible to enforce and collect
delinquent charges.
Section
803. Reasonable Charges for all Services. None of the facilities or services
provided by the Sanitary Sewer System will be furnished to any user (excepting
the City itself) without a reasonable charge being made therefor. If the
income and revenues derived by the City from the Sanitary Sewer System are
insufficient to pay the reasonable expenses of operation and maintenance of the
Sanitary Sewer System and the principal of and interest on the Bonds when due,
the City will pay into the Sanitary Sewer Revenue Account a fair and reasonable
payment in accordance with effective applicable rates and charges for all
services or other facilities furnished to the City or any of its departments by
the Sanitary Sewer System.
Section
804. Annual Budget. Prior to the commencement of each Fiscal Year, the City
will cause a budget setting forth the estimated receipts and expenditures of
the Sanitary Sewer System for the next succeeding Fiscal Year to be prepared
and filed with the City Clerk. The City Clerk, within 30 days after the end of
the current Fiscal Year, will mail a copy of the budget to the Bondowner and
the Trustee. The annual budget will be prepared in accordance with the laws of
the State.
Section
805. Annual Audit.
(a) Promptly
after the end of each Fiscal Year, the City will cause an audit of the Sanitary
Sewer System for the preceding Fiscal Year to be made by a certified public
accountant or firm of certified public accountants employed for that purpose
and paid from the Revenues. The annual audit will cover in reasonable detail
the operation of the Sanitary Sewer System during the Fiscal Year.
(b) Within
180 days after the end of the Citys Fiscal Year, a copy of the annual audit
will be filed in the office of the City Clerk, and a duplicate copy of the
audit will be mailed to the Bondowner and the Trustee. The annual audit will
be open to examination and inspection during normal business hours by any
taxpayer, any user of the services of the Sanitary Sewer System, any Owner of
the Bonds, or anyone acting for or on behalf of the taxpayer, user or Owner.
(c) As
soon as possible after the completion of the annual audit, the Governing Body
will review the annual audit, and if the annual audit reveals any breach of
this Ordinance, the City agrees to promptly cure the breach.
Section
806. Performance of Duties. The City will faithfully and punctually perform
all duties and obligations with respect to the operation of the Sanitary Sewer
System now or hereafter imposed upon the City by the Constitution and laws of
the State and the provisions of this Ordinance.
Section
807. Tax Covenants.
(a) The
City will comply with all applicable provisions of the Code, including Sections
103 and 141 through 150, necessary to maintain the exclusion of interest on the
Authority Bonds from gross income for federal income tax purposes. The City
will not use or permit the use of any proceeds of the Bonds or any other funds
of the City, nor take or permit any other action, or fail to take any action,
which would adversely affect the exclusion of interest on the Authority Bonds
from gross income for federal income tax purposes. The City will adopt
ordinances or resolutions and take other actions necessary to comply with the Code
and with other applicable future law, in order to ensure that the interest on
the Authority Bonds will remain excluded from federal gross income.
(b) The
City (1) will use the proceeds of the Bonds as soon as practicable for the
purposes for which the Bonds are issued, and (2) will not invest or directly or
indirectly use or permit the use of any proceeds of the Bonds or any other
funds of the City in any manner, or take or omit to take any action, that would
cause the Authority Bonds to be arbitrage bonds within the meaning of Section
148(a) of the Code.
(c) The
City will not use any portion of the proceeds of the Bonds, including any
investment income earned on the proceeds, directly or indirectly, (1) in a
manner that would cause any Bond to be a private activity bond within the
meaning of Section 141(a) of the Code, or (2) to make or finance a loan to
any person.
(d) The
City will pay to the Trustee, for deposit to the Interest Account and
subsequent transfer as provided in the Indenture, an amount equal to arbitrage
rebate and the costs incurred in connection with determining arbitrage rebate,
at the times required by the Arbitrage Instructions. The provisions of this
paragraph will survive the payment in full or defeasance of the Bonds.
ARTICLE IX
ADDITIONAL BONDS
Section
901. Prior Lien Bonds. Except as provided in Section 904, the City will not
issue any debt obligations payable out of the Net Sanitary Sewer Revenues which
are superior in lien, security or otherwise to the Bonds.
Section
902. Parity Lien Bonds or Obligations.
(a) The
City will not issue any additional bonds or other long-term obligations payable
out of the Net Sanitary Sewer Revenues which stand on a parity or equality with
the Bonds unless the following conditions are met:
(1) The City is not in default in the
payment of principal or interest on the Bonds or the Parity Bonds or in making
any deposit into the funds and accounts under this Ordinance or any Parity
Ordinance; and
(2) The City provides to the Bondowner
and the Trustee a certificate showing either of the following:
(A) The average annual Net Sanitary
Sewer Revenues as set forth in the two most recent annual audits for Fiscal
Years preceding the issuance of additional bonds, are at least 110% of the
average annual debt service on the Sanitary Sewer System Revenue Bonds,
including the additional bonds proposed to be issued, to be paid out of the Net
Sanitary Sewer Revenues in all succeeding Fiscal Years. Interest to be paid on
any SRF Program Bonds may be reduced by the SRF Subsidy, if any. In
determining Net Sanitary Sewer Revenues, the City may rely on a certificate of
the Consultant (i) to add the additional Net Sanitary Sewer Revenues which
would have resulted if the rate increase had been in effect for the entire
period to the audited Net Sanitary Sewer Revenues if the City has made any
increase in rates for the use and services of the Sanitary Sewer System and the
increase has not been in effect during all of the two Fiscal Years for which annual
audits are available, or (ii) to determine Net Sanitary Sewer Revenues for a
Fiscal Year if the additional bonds are to be issued before there are two
annual audits which reflect Net Sanitary Sewer Revenues; or
(B) The estimated average annual Net Sanitary
Sewer Revenues Available for Debt Service for the two Fiscal Years immediately
following the Fiscal Year in which the improvements to the Sanitary Sewer
System being financed by the additional bonds are to be in commercial
operation, as certified by the Consultant, is at least 110% of the average
annual debt service on the Sanitary Sewer System Revenue Bonds, including the
additional bonds proposed to be issued, to be paid out of the Net Sanitary
Sewer Revenues Available for Debt Service in succeeding Fiscal Years following
the commencement of commercial operation of the improvements. Interest to be
paid on any SRF Program Bonds may be reduced by the SRF Subsidy, if any. In
determining the amount of estimated Net Sanitary Sewer Revenues Available for
Debt Service for the purpose of this subsection, the Consultant may adjust the
estimated net income and revenues by adding the estimated increase in Net
Sanitary Sewer Revenues Available for Debt Service resulting from any increase
in rates for the use and services of the Sanitary Sewer System approved by the
City.
(b) If
the conditions set forth in this Section are satisfied, the City (i) may issue
additional revenue bonds or other obligations of the City on a parity with the
Bonds and that enjoy complete equality of the lien on the Net Sanitary Sewer
Revenues with the Bonds, (ii) may make equal provision for paying the
additional revenue bonds or other obligations from the Sanitary Sewer Revenue
Account, and (iii) may secure the additional revenue bonds or other obligations
by funding reasonable System debt service accounts and debt service reserve
accounts from the Net Sanitary Sewer Revenues.
Section
903. Junior Lien Bonds. Nothing in this Article prohibits or restricts the
right of the City to issue additional revenue obligations, including revenue
bonds, for the purpose of extending, improving, enlarging, repairing or
altering the Sanitary Sewer System, that are subordinate to the Bonds if at the
time of the issuance of the additional revenue obligations the City is not in
default in the performance of any covenant or agreement in this Ordinance. If
the City is in default in paying either interest on or principal of the Bonds,
or if the Reserve Account is not fully funded, the City shall not make any
payments on the subordinate revenue obligations until the default is cured.
Subject to the limitations in this Section, the City may make provision for
paying the principal of and interest on the subordinate revenue bonds or
obligations from moneys in the Sanitary Sewer Revenue Account.
Section
904. Refunding Bonds.
(a) The
City may, without complying with the provisions of Section 902, refund any of
the Bonds in a manner which provides debt service savings to the City, and the
refunding bonds so issued will be on a parity with any of the Bonds that are
not refunded and any Outstanding Parity Bonds. If the Bonds are refunded in
part and the refunding bonds bear a higher average rate of interest or become
due on a date earlier than that of the Bonds which are refunded, the City must
obtain the prior written consent of the Bondowner and DNR to the issuance of
the refunding bonds.
(b) The
City may refund any of the Outstanding Senior Bonds in a manner which provides
debt service savings to the City in each subsequent Fiscal Year, and the
refunding bonds so issued may have a priority lien on the Net Sanitary Sewer
System Revenues.
ARTICLE X
DEFAULT AND REMEDIES
Section
1001. Event of Default. If (i) the City defaults in the payment of the
principal of or interest on any of the Bonds, or (ii) the City or its Governing
Body or any of its officers, agents or employees fails or refuses to comply
with any provision of this Ordinance, the Constitution or statutes of the
State, the Purchase Agreement or the Revolving Fund Agreement and default
continues for a period of 60 days after written notice specifying the
non-payment default has been given to the City by the Trustee, the Authority,
DNR or the Owner of any Bond then Outstanding, at any time thereafter and while
the default continues, the City shall pay to DNR the penalties assessed by DNR
in accordance with the Regulations. The penalties will be assessed as a reduction
in the credit provided in Section 602(a)(2)(A).
Section
1002. Remedies.
(a) The
provisions of this Ordinance constitute a contract between the City and the
Owners of the Bonds. The Owner or Owners of not less than 10% in principal
amount of the Bonds at the time Outstanding have the right for the equal
benefit and protection of all Owners of Bonds similarly situated:
(1) by any proceeding at law or in
equity to enforce the rights of the Owner or Owners against the City and its
officers, agents and employees, and to compel the performance by the City of
its duties and obligations under this Ordinance, the Constitution and the laws
of the State;
(2) by any proceeding at law or in
equity to require the City, its officers, agents and employees to account as if
they were the trustees of an express trust; and
(3) by any proceeding at law or in
equity to enjoin any act or thing which is unlawful or in violation of the
rights of the Owners of the Bonds.
(b) Any
amounts paid on the Bonds to the Owners will be applied first to interest and
second to principal, to the extent due and payable.
Section
1003. Limitation on Rights of Bondowners. No Owner has any right in any
manner whatever by the Owners action to affect, disturb or prejudice the
security granted and provided for in, or enforce any right under, this
Ordinance, except in the manner provided in this Ordinance. All proceedings at
law or in equity will be for the equal benefit of all Owners.
Section
1004. Remedies Cumulative. No remedy conferred upon the Owners is intended to
be exclusive of any other remedy. Each remedy is in addition to every other
remedy and may be exercised without exhausting any other remedy conferred under
this Ordinance. No waiver by any Owner of any default or breach of duty or
contract of the City under this Ordinance will affect any subsequent default or
breach of duty or contract by the City or impair any rights or remedies
thereon. No delay or omission of any Owner to exercise any right or power
accruing upon any default will impair any right or power or will be construed
to be a waiver of any default. Every substantive right and every remedy
conferred upon the Owners of the Bonds by this Ordinance may be enforced and
exercised from time to time and as often as may be expedient. If any Owner
discontinues any proceeding or the decision in the proceeding is against the
Owner, the City and the Owners of the Bonds will be restored to their former
positions and rights under this Ordinance.
Section
1005. No Obligation to Levy Taxes. Nothing in this Ordinance imposes any duty
or obligation on the City to levy any taxes either to meet any obligation
incurred under this Ordinance or to pay the principal of or interest on the
Bonds.
ARTICLE XI
DEFEASANCE
Section
1101. Defeasance. When all of the Bonds have been paid and discharged, the
provisions of this Ordinance (other than Section 807) will terminate. Bonds
will be treated as paid and discharged within the meaning of this Ordinance if the
City has deposited with the Paying Agent, or other bank or trust company
located in the State, having full trust powers and meeting the requirements of
a successor Trustee under the Indenture, (i) moneys and non-callable Defeasance
Securities which, together with interest to be earned, as evidenced by the
written report of an independent certified public accountant, will be
sufficient for the payment of the principal and redemption premium, if any, of
and interest to accrue on the Bonds to the date of maturity or redemption, plus
an additional premium on Bonds being optionally redeemed equal to interest that
would otherwise accrue on the Bonds for an additional 30-day period, and (ii)
an opinion of Bond Counsel, addressed to the Authority and the Trustee, that
providing for the payment of the Bonds by depositing moneys or Defeasance
Securities with the Paying Agent in accordance with this Section will not cause
the interest on the Authority Bonds to be included in gross income for federal
income tax purposes. If any Bonds will be redeemed prior to maturity, the City
must have given irrevocable instructions to the Paying Agent to redeem the
Bonds. Any moneys and obligations which at any time are deposited with the
Paying Agent or other bank by or on behalf of the City, for the purpose of
paying and discharging any of the Bonds, are assigned, transferred and set over
in trust for the applicable Owners, and the moneys and obligations are
irrevocably appropriated to the payment and discharge of the applicable Bonds.
ARTICLE XII
AMENDMENTS
Section
1201. Amendments.
(a) The
provisions of this Article are not applicable to the Terms Ordinance.
(b) Any
provision of the Bonds or of this Ordinance may be amended by an ordinance with
the written consent of the Authority and the Trustee. Consent must be
evidenced by an instrument executed by the Authority and the Trustee,
acknowledged or proved in the manner of a deed to be recorded, and filed with
the City Clerk. In addition, the prior written consent of the Bondowner and
DNR is required for any amendment which would:
(1) extend the maturity of any payment
of principal or interest on any Bond;
(2) reduce
the amount of principal or interest payable on any Bond; or
(3) permit
the priority of any Bond over any other Bond.
(c) No
amendment will be effective until (i) the City has delivered to the Bondowner,
the Trustee and DNR an opinion of Bond Counsel stating that the amendment is
permitted by this Ordinance and the Act, complies with their respective terms,
is valid and binding upon the City in accordance with its terms and does not
adversely affect the exclusion of interest on the Authority Bonds from gross
income for federal income tax purposes, and (ii) the City Clerk has on file a
copy of the amendment and all required consents.
ARTICLE XIII
MISCELLANEOUS PROVISIONS
Section
1301. Further Authority. The officers of the City, including the Mayor, the
City Manager, the City Treasurer, the Director of Finance and the City Clerk,
are authorized and directed to execute all documents and take the actions as
are necessary or advisable in order to carry out and perform the purposes of
this Ordinance and to make ministerial changes in the documents approved by
this Ordinance which they may approve. The execution of any document or taking
of any related action constitutes conclusive evidence of the necessity or
advisability of the action or change.
Section
1302. Severability. If any section or other part of this Ordinance is for any
reason held invalid, the invalidity will not affect the validity of the other
provisions of this Ordinance.
Section
1303. Governing Law. This Ordinance is governed by and will be construed in
accordance with the laws of the State.
__________________________________________________________________
Approved
as to form and legality:
_____________________________________
Assistant
City Attorney