HomeMy WebLinkAbout0434 Water Revenue Certificates 1995i
CITY OF CHUBBUCK, IDAHO
ORDINANCE NO. 434
AN ORDINANCE AUTHORIZING THE ISSUANCE, SALE AND
DELIVERY OF THE CITY OF CHUBBUCK, IDAHO, CERTIFICATES
OF PARTICIPATION, AND AUTHORIZING EXECUTION AND
DELIVERY OF AN INSTALLMENT PURCHASE AND TRUST
AGREEMENT, AN ESCROW AGREEMENT, A CERTIFICATE PURCHASE
CONTRACT, AND AN OFFICIAL STATEMENT, MAKING FINDINGS IN
CONNECTION THEREWITH; AUTHORIZING THE EXECUTION OF AND
APPROVING RELATED DOCUMENTS, AGREEMENTS AND ACTIONS;
PROVIDING FOR THE WAIVER OF READING OF THIS ORDINANCE
ON THREE SEPARATE OCCASIONS AND PROVIDING FOR THE
PUBLICATION OF THIS ORDINANCE AND AN EFFECTIVE DATE.
$1,500,000
THE CITY OF CHUBBUCK, IDAHO
WATER REVENUE CERTIFICATES OF PARTICIPATION, SERIES 1995
IN RIGHTS TO RECEIVE REVENUE PURSUANT TO AN
INSTALLMENT PURCHASE AND TRUST AGREEMENT
WITH FIRST SECURITY BANK OF IDAHO, N.A., AS TRUSTEE
WHEREAS, the City has determined that it is necessary to
finance the replacement of the City's water system wells and
related source facilities and related items (the "Project
Facilities"), which have failed to meet applicable health and
safety or other public welfare standards. The City has been
advised by counsel that there has been a judicial confirmation
that the City's expenditures for the Project Facilities
constitute "ordinary and necessary expenses" under Article VIII,
Section 3 of the Idaho Constitution; and
WHEREAS, in order to provide funds for the acquisition and
construction of the Project Facilities, the City intends to
authorize the issuance of certain Water Revenue Certificates of
Participation, Series 1995 (the "Certificates") pursuant to an
Installment Purchase and Trust Agreement (the "Agreement") dated
as of April 1, 1995, between the City and First Security Bank of
Idaho, N.A. (the "Trustee"). The Project Facilities will be
constructed in the name of the Trustee and the Trustee, pursuant
to the Agreement, will sell the Project Facilities to the City;
and
WHEREAS, in order to defease the City's Water Revenue Bonds,
Series September 1, 1976 (the "Prior Bonds"), the City intends to
authorize the execution of an Escrow Agreement dated as of April
1, 1995, (the "Escrow Agreement"), between the City and the
Trustee, to receive and hold funds sufficient, with the
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investment earnings thereon, to pay in full the Prior Bonds at
maturity; and
WHEREAS, the proceeds of the Certificates will be used to
pay the costs of acquiring and constructing the Project
Facilities, to establish a Reserve Account and to pay the costs
of issuing the Certificates; and
WHEREAS, all conditions, things and acts required to exist,
to have happened and to have been performed precedent to and in
the issuance of the transactions contemplated thereby the
Certificates and by the documents referred to herein exist, have
happened and have been performed in due time; form and manner as
required by the laws of the State of Idaho; and
WHEREAS, Piper Jaffray Inc. (the "Underwriter") has
submitted an offer to purchase the Certificates, and it is
desirable that the Certificates be sold at this time,
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF
THE CITY OF CHUBBUCK, IDAHO, as follows:
1. Pursuant to applicable law and the Agreement,
Certificates of Participation of the Trustee designated as "City
of Chubbuck, Water Revenue Certificates of Participation, Series
1994 Evidencing Assignment of a Proportionate Interest in Rights
to Receive Certain Revenues Pursuant to the Installment Purchase
and Trust Agreement between First Security Bank of Idaho, N.A.,
the Trustee and Seller, and the City, as Purchaser" in an
aggregate principal amount not to exceed $1,500,000 (the
"Certificates") are hereby authorized to be issued by the Trustee
and the City is authorized to enter into the Agreement.
2. First Security Bank of Idaho, N.A. is hereby appointed
as the Trustee (the "Trustee") for the Certificates as provided
for in the Agreement. The proposed Agreement and Escrow
Agreement are hereby approved in substantially the form presented
to this meeting. The Mayor of the City is hereby authorized and
directed, for and in the name and on behalf of the City, to
execute and deliver the Agreement and the Escrow Agreement in
substantially said form, with such additions thereto or changes
therein as such officers may required or approve, such approval
to be conclusively evidenced by the execution and delivery
thereof, and the City Clerk is hereby authorized to attest to
such signatures. The date, maturity dates, interest rate or
rates, interest payment dates, denominations, form, registration
privileges, manner of execution, place of payment, terms of
redemption and other terms of the Certificates and of the
Agreement shall be as provided in said Agreement and the purchase
contract referenced below.
3. The form of purchase contract between the City and the
Underwriter presented to this meeting(the "Purchase Contract"),
and the sale of the Certificates pursuant thereto, are hereby
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approved. The Mayor is hereby authorized and directed, for and
in the name and on behalf of the City to accept the offer of the
Underwriter to purchase the Certificates contained in said
Purchase Contract and to execute and deliver said Purchase
Contract.
4. The Preliminary Official Statement dated March 22,
1995, and pertaining to the Certificates presented to this
meeting by the Underwriter, and the use thereof by the
Underwriter is hereby ratified and approved. The Mayor of the
City is hereby authorized and directed, for and in the name and
on behalf of the City, to execute a final Official Statement in
substantially the form of said Preliminary Official Statement
with such additions to or changes in the form of said Official
Statement as such officer may deem necessary or advisable, such
approval to be conclusively evidenced by the execution of said
Official Statement as so added to or changed. The Underwriter,
as purchaser of the Certificates, is hereby authorized to deliver
copies of said final Official Statements (as so added to or
changed) to all actual purchasers of the Certificates.
5. Certificates in the aggregate principal amount not to
exceed $1,500,000 shall be manually executed by the Trustee, in
the form set forth in and otherwise in accordance with the
provisions of the Agreement. Temporary Certificates may be
delivered in accordance with the provisions of the Agreement if
such action is determined to be necessary by the Trustee, and
such approval shall be conclusively evidenced by the execution of
such Temporary Certificates.
6. The Trustee is hereby requested and directed to deliver
the Certificates, when duly executed and authenticated, to the
Underwriter in accordance with written instructions executed on
behalf of the City by the Mayor of the City, which instructions
said officer is hereby authorized and directed, for and in the
name and on behalf of the City, to execute and deliver to the
Trustee. Such instructions shall provide for the delivery of the
Certificates to the Underwriter in accordance with the Purchase
Contract, upon payment of the purchase price thereof.
7. All actions heretofore taken by the officers and agents
of the City with respect to the sale and issuance of the
Certificates are hereby approved, confirmed and ratified, and the
officers of the City are hereby authorized and directed, for and
in the name and on behalf of the City to do any and all things
and take any and all actions and execute and deliver any and all
certificates, agreements and other documents (including but not
limited to those described in the Purchase Contract and the
Agreement and other documents herein approved), which they, or
any of them, may deem necessary or advisable in order to
consummate the lawful issuance and delivery of the Certificates
in accordance with this Ordinance.
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8. The City hereby finds and determines that the
conditions existing at its current water system source facilities
require the replacement of such facilities with facilities which
can meet all applicable health, safety and other regulatory
standards including the requirements of the Idaho Department of
Health and Welfare and the U.S. Environmental Protection Agency.
The City hereby finds and determines that the expenditures for
the Project Facilities, do, by virtue of State law and court
decisions, constitute "ordinary and necessary expenses" under
Article VIII, Section 3 of the Idaho Constitution.
9. After any of the Certificates are issued, this Ordinance
shall be irrepealable until defeasance.
10. The invalidity or unenforceability of any provision of
this Ordinance shall not affect the remaining provisions.
11. All bylaws, orders and ordinances inconsistent herewith
are hereby repealed to the extent of such inconsistency.
12. The rule requiring and ordinance to be read on three
separate days, one of which shall be a reading in full is hereby
dispensed with. This Ordinance, upon passage shall be published
in the Idaho State Journal, the official newspaper of the City
within thirty (30) days of the date hereof.
13. This Ordinance shall be in full force and effect from
and after its passage, approval and publication, as provided by
law.
PASSED by the City Council and,
APPROVED by the Mayor of the City of Chubbuck, Idaho, this
28th day of March, 1995.4MAYOR "k�t
ATTEST:
By
CITY CLERK
( S-EAL)
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