HomeMy WebLinkAbout0135 Sewer Revenue Bond 1974 10-1-72 BOND
ORDINANCE NO. !~.~
"AN ORDINANCE CONCERNING THE SEWER SYSTEM OF THE CITY
OF CHUBBUCK, IDAHO; DECLARING THE RESULTS OF THE VOTE
ON THE SEWER REVENUE BOND QUESTION SUBMITTED AT A
SPECIAL, MUNICIPAL, BOND ELECTION HELD ON TUESDAY,
MARCH 8, 1972; AUTHORIZING THE ISSUANCE OF THE SEWER
REVENUE BONDS OF THE CITY, IN THE AGGREGATE PRINCIPAL
AMOUNT OF $1,000,000.00, PAYABLE SOLELY FROM THE RATES
AND CHARGES FOR THE USE OF, AND THE SERVICE RENDERED BY,
THE MUNICIPAL SEWER SYSTEM, FOR THE PURPOSE OF DEFRAY-
ING WHOLLY OR IN PART THE COST OF CONSTRUCTING AND
ACQUIRING THE CITY'S SEWERAGE SYSTEM; PROVIDING THE
FORM, TERMS AND CONDITIONS OF SUCH BONDS, THE MANNER
AND TERMS OF THEIR ISSUANCE, THE MANNER OF THE EXECU-
TION THEREOF, THE METHOD OF PAYING THE BONDS, AND THE
SECURITY THEREFOR; PROVIDING FOR THE COLLECTION AND
DISPOSITION OF THE REVENUES DERIVED FROM SUCH SEWERAGE
SYSTEM; PRESCRIBING OTHER DETAILS CONCERNING THE
BONDS AND THE SYSTEM, INCLUDING, WITHOUT LIMITATION,
COVENANTS AND AGREEMENTS IN CONNECTION THEREWITH;
RATIFYING ACTION HERETOFORE TAKEN TOWARD SUCH SEW-
ERAGE PROJECT, TOWARD THE ISSUANCE OF THE CITY'S
SEWER REVENUE BONDS THEREFOR, AND TOWARD HOLDING THE
ELECTION; REPEALING ALL ORDINANCES IN CONFLICT HERE-
WITH; AND PROVIDING THE EFFECTIVE DATE OF THIS ORDIN-
ANCE."
WHEREAS, the City of Chubbuck, (herein "City") in
the County of Bannock and State of Idaho, is a municipal
corporation duly organized and eXisting as a City under
the general laws of the State of Idaho; and
WHEREAS, the City is presently without proper
sewerage collection and treatment facilities; and
WHEREAS, the City Council (herein"Council") has
determined and does hereby determine that the interest of
the community and the public interest and necessity require
the construction and acquisition of a municipal sewerage sys-
tem (herein the "Project"); and
WHEREAS, for the purpose of defraying a part of the
cost of acquiring the sewer Project, the Council further deems
it necessary to issue its sewer revenue bonds in the aggregate
principal amount of $1,000,000.00, or so much thereof as may
be necessary, payable solely from the revenues of said sewerage
system as so constructed pursuant to the Revenue Bond Act cited
as Sections 50~1027 through 50-1042, Idaho Code, and all laws
thereunto enabling; and
WHEREAS, the City has never pledged the revenues
derived from the operation of the municipal sewerage system
(herein the "system") for the redemption of revenue bonds pay-
able from such revenues, or otherwise, with the result that the
net revenues to be derived from the operation of the system may
be pledged lawfully and irrevocably to secure the repayment of
said revenue bonds herein authorized pursuant to the Revenue
Bond Act; and
WHEREAS, pursuant to an election for consolidation
held in each of the cities of Alameda, Pocatello and Chubbuck,
on the 20th day of March, 1962, and pursuant to proceedings
taken pursuant to an act then cited as Chapter 23, Title 50,
Idaho Code, the cities of Alameda and Pocatello were consoli-
dated in the year 1962 into a city known as the City of Pocatello
and the City of Chubbuck was not so consolidated; and
WHEREAS, such revenue bonds shall not be a debt
of the City and it shall not be liable thereon, nor shall the
bonds be payable out of any funds other than the revenue from
the system pledged to the payment thereof; and
WHEREAS, the revenue bonds cannot be issued without
the assent of a two-thirds majority of the qualified ~lectors of
the City voting at an election held for the purpose of author-
izing or refusing to authorize the issuance of such sewer revenue
bonds; and
WHEREAS, at a special municipal bond election, duly
held in the City of Chubbuck (herein the "City"), County of
Bannock, State of Idaho (herein the "State"), on Tuesday, the
7th day of March, 1972 (herein the "Election") there was sub-
mitted to the qualified electors of the City the following
question (herein the "Question"):
"Shall the City of Chubbuck, Idaho, issue and
sell its sewer revenue bonds in the aggregate
principal amount of $1,000,000.00, or so much
thereof as may be necessary, for the purpose
or providing funds with which to construct and
~acquire a sewerage system, said bonds to mature
serially commencing 1 year and ending 40 years
from the January 1 following delivery and to
bear interest at a rate or rates not to exceed
6% per annum, as more fully provided in Ordin-
ance No. 104, signed and approved the 12th day of
February, 1972, the principal of and the interest
on said bonds to b~ payable solely from the net
revenues to be derived from the operation of the
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municipal sewerage system?
and
WHEREAS, the Question upon the issuance of the City's
sewer revenue bonds so voted at the Election duly carried by
more than a majority vote of two-thirds (2/3rds) of the regis-
tered qualified electors in the City voting at the election
(i.e. by a majority of 81%); and
WHEREAS, the result of the Election has heretofore
been duly canvassed and declared on the 8th day of March, 1972;
and
WHEREAS, the Council has entered into a loan agreement
dated the 12th day of May, 1972, together with several amend-
ments, with the United States of America, Department of Housing
and Urban Development (herein "HUD") pursuant to which the
government has agreed to submit its bid for the Series October 1,
1972 sewer revenue bonds when offered for public sale at the
rate of six per cent (6%) per annum; and
WHEREAS, it is advisable and in the best interests
of the City to make appropriate provisions herein for the future
issuance of additional bonds or other securities payable from
the system revenues, which additional bonds or other securities,
if and when authorized in accordance with law, will, subject to
designated conditions, occupy a position of parity and enjoy an
equality of lien on the system revenues with the bonds herein
authorized, and further to prescribe the restrictions, covenants
and limitations which shall govern the issuance of any additional
bonds or any other securities payable from the system revenues;
and
WHEREAS, the gross revenues of the system may lawfully
be pledged to secure the redemption of the 1972 bonds.
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL
OF THE CITY OF CHUBBUCK, IDAHO:
Section 1. Short Title. This ordinance shall be known
as and may be cited by the short title "10-1-72 Bond Ordinance".
Section 2. Definitions. The terms in this section
defined for all purposes of this ordinance and of any ordinance
amendatory hereof or supplemental hereto, or relating hereto,
and of any other ordinance or document pertaining hereto, ex-
cept where the context by clear implication herein otherwise
requires, shall have the following meanings:
A. "Acquisition Fund" means the special account desig-
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nated as the "City of Chubbuck, Idaho, Sewer Revenue Bonds,
Series October 1, 1972, Construction and Other Acquisition
Account" .
B. "Act" means the act designated by the short title
"Revenue Bond Act," enacted as Chapter 47, Session Laws of Idaho
1957, codified by ~ 187 through 202, Chapter 429, Session Laws
of Idaho 1967, and also cited as ~ 50-1027 through 50-1042,
Idaho Code, as from time to time amended.
C. ".Average Annual Debt Service" (or "Average Annual
Principal and Interest Requirements") mean for each series of
bonds or other obligations payable from net revenues derived
from the operation of the system (and constituting a lien on such
revenues on a parity with the lien of the 1972 bonds), the aggre-
gate of all future principal and interest requirements to become
due on such bonds, in all remaining years in which principal is
to mature in accordance with the schedule of maturities thereof,
divided by the number of such years to the final date of maturity
of each series (excluding any years in which principal is not
to become due). The average annual debt service for each separ-
ate series is to be computed separately.
D. "Bond Fund" or "1972 Bond Fund" means the special
account designated as the "City of Chubbuck, Idaho, Sewer Revenu~
Bonds, Series October 1, 1972, Interest and Bond Retirement Fund"
(also designated in Exhibit B of the Loan Agreement as "Bond and
Interest Sinking Fund Account").
E. "Bond Requirements" means the principal of, any
prior redemption premiums due in connection with, and the interest
on the 1972 bonds and any additional bonds or other additional
securities payable from the '!net revenues, as herein defined,
and hereafter issued, if any, or such part of such securities as
may be designated.
F. The term "bonds" or "1972 bonds" means the securi-
ties issued hereunder and designated as the "city of Chubbuck,
Idaho, Sewer Revenue Bonds, Series October 1, 1972," including,
without limitation any "single bond," as herein defined.
G. "City" means the City of Chubbuck, a municipal
corporation located in the County of Bannock, and State of Idaho,
and being a political subdivision thereof, or any successor muni-
cipal corporation; and where the context so indicates, such term
means the geographical area comprising such municipal corporation.
H. "Combined AVerage Annual Debt Service" means the
aggregate or total of the "average annual debt service" for each
separate series of outstanding parity lien bonds, i.e., all of
the "average annual debt services" combined.
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I. "Council" or "Governing Body" means the City
COuncil of the City, or such Council's successor in functions,
i f any.
J. "Facilities" or "system" means the municipal~
sanitary sewer system of the ~City and the terms "Facilities"
and "system" shall be construed to mean all properties, real,
personal, mixed, or otherwise, now owned or hereafter acquired
by the City through purchase, construction, or otherwise, and
used in-connection with the municipal sewer system of the City,
and in anywise pertaining thereto, whether situated within or
without the limits of the City.
K. "HUD" means the United States of America, Department
of Housing and Urban Development, or any successor agency of the
government.
L. "Federal SecUrities" means bills, certificates
of indebtedness, notes, bonds or similar securities whi~.h are
direct obligations of, or the principal and interest of which
securities are unconditionally guaranteed by, the United States
of America.
M. The term "gross income" or "gross revenues" means
all the "income" and "revenues" derived directly or indirectly
by the City from the operation and use of the system, and shall
include all income and revenue derived by the City from the
operation and use of the Facilities, or system, or any part
thereof, whether resulting from betterments, extensions, other
improvements, or repairs to the system, or any combination there-
of, or otherwise, and shall include all revenues received by
the City, or any municipal corporation succeeding to the rights
of the City, from the system and from the sale of sewer service,
facilities, or commodities, or any combination thereof, to the
inhabitants of what is now the City (including all territorial
annexations which may be made while the 1972 bonds or any part
thereof are outstanding), or from the sale of sewer service,
facilities or commodities, or any combination thereof, by means
of the system owned and operated by the City as the same may at
any time exist to serve customers outside the City's limits as
well as customers within the City's limits.
N. The term "holder," or any similar term, when used
in conjunction with any coupons, any bonds, or any other desig-
nated securities means the person in possession and the apparent
owner of the designated item if such obligation is registered
to bearer or is not registered, or the term means the registered
owner of any bond or other security which is registerable for
payment if at the time it is registered for payment otherwise
than to bearer.
O'. The term "income" or "revenues" means "gross in-
come,"as hereinabove defined.
p. "Income Fund" means the special account designated
as the "City of Chubbuck Gross Income Sewer System Fund" (also
designated in Exhibit B of the Loan Agreement as "Sewer System
Revenue Fund Account") ·
Q. "Independent Accountant" means any certified public
accountant, or any firm of certified public accountants, at from
time to time determined by the City Council, duly licensed to
practice and practicing as such under the laws of the State,
appointed and compensated by the City, on the behalf and in the
name of the City:
(1) Who is, in fact, independent and not under
the domination of the City,
(2) Who does not have any substantial interest,
direct or indirect, with the City, and
(3) Who is not connected with the City as an
officer or employee thereof, but who may be regularly
retained to make annual or similar audits of any books
or records of the City.
R. "Insured Bank" means a commercial bank which is a
member of the Federal Reserve System and the Federal Deposit
Insurance Corporation.
S. "Loan Agreement" means the contract dated May
12, 1972, including all amendments thereto, between the govern-
ment and the City, acting by and through the HUD and the City
Council, respectively.
T. "Minimum Reserve" or "1972 Minimum Reserve" means
the amount of not less than $67,320.00 to be deposited, accumu-
lated and maintained in the 1972 Reserve Fund (also designated
in Exhibit B to the Loan Agreement as "Debt Service Reserve").
U. The term "net income," "net revenues" or "net
pledged revenues" means the "gross income," as herein defined,
and remaining after the deduction of the "operation and mainten-
ance expenses" of the system, as herein defined.
V. The term "1972 Reserve Fund" 'or the "Reserve Fund"
means the special account designated as the "City of Chubbuck,
Idaho, Sewer Revenue Bonds, Series October 1, 1972, Reserve Fund".
W. The term "operation and maintenance expenses" (or
a phrase of similar import such as "Current Expenses" in Exhibit
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"B" of the Loan Agreement) means all reasonable and necessary cur-
rent expenses of the City, paid or accrued, of operating, maintain-
ing and repairing the system, and includes, without limitation,
legal and overhead expense of the various departments of the City
directly related and reasonably allocable to the administration
of the system, insurance premiums, the reasonable charges of
depositary banks and paying agents, contractual services, pro-
fessional services required by this ordinance, salaries and
administrative expenses, labor, and the cost of materials and
supplies used for current operation, but does not include any
allowance for depreciation, liabilities incurred by the City as
the result of its negligence in the operation of the system,
general administrative expenses of the City not attributable to
the system, betterments, extensions, other improvements, or any
charges for the accumulation of reserves for capital replacements,
contained in the Repair and Replacement Reserve Account.
X. "Parit. y Bonds," or "Parity Lien Bonds" means one or
more additional series of bonds or other obligations payable from
any net revenues derived from the operation of the sewer system
and constituting a lien upon such net revenues on a parity with
(but not prior or superior to) the lien on such net revenues of
the 1972 bonds.
Y. "Paying Agent" means The Idaho First National Bank
(Pocatello Office), in Pocatello, Idaho, or The Morgan Guaranty
and Trust Company, New York, New York.
Z. "Pro~ect" means the ~ndertaking to construct and
otherwise acquire the municipal sanitary sewerage system as
delineated in the preambles hereof.
AA. "Pro~eqt Engineer" means any registered or licensed
professional engineer, or firm of such engineers, as from time to
time determined by the City Council:
(1) Who has a wide and favorable repute for skill
and experience in the field of designing, preparing plans
and specifications for, and supervising the construction
of sewerage facilities;
(2) Who is entitled to practice and is practicing
under the laws of the State; and
(3) Who is selected, retained and compensated by
the City Council, in the name and on behalf of the
City, but who may be in the regular employ or control
of the City.
At present Forsgren, Perkins and Associates, consulting engineers,
of Rexburg, Idaho, are retained by the City as the Project Engineer.
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BB. "Purchaser" means HUD, -and any investment
banking firm or other person purchasing the 1972 bonds, or any
block thereof, or any other securities of the City in connec-
tion with which such term is used; or if the 1972 bonds, or any
block thereof, or any such securities of any other series, as
the case may be, are purchased by more than one person, "Purchaser"
means the manager of the account purchasing the securities; and
"Purchaser" includes any successor thereof.
CC. "Re~istr~ar'' means the Treasurer in his capacity as
agent of the City for the registration for payment, assignment,
conversion and discharge from registration of bonds and who is
required to keep books therefor, and includes any successor of the
Treasurer.
DD.. "Repair and Replacement Reserve Account" means the
special account designated as the "City of Chubbuck Sewer System
Repair and Replacement Reserve Account."
BB. The term "Single bond" means the bond evidencing
more than one installment of principal and the loan to the City
by the HUD.
EE. "Tax Code" means the U. S. Internal Revenue Code
of 1954, as from time to time amended.
Section 3. Ownership and Operation. The City shall
continue to own and operate its sewerage facilities as a single
operation.
Section 4. ~ife of the Facilities. The City Council,
on behalf of the City, has determined and does hereby declare:
A. Estimated Life. The estimated life or estimated
period of usefulness of the system acquired by the
Project is not less than 40 years from the date of the
bonds; and
B. Bond Term. The bonds shall mature at times not
exceeding such estimated life or estimated period of
usefulness.
Section 5. Construction Authorized. The City's
Facilities shall be constructed and acquired, and they are
hereby ordered to be constructed and acquired by the immediate
acquisition of the Project, and the Project is hereby so auth-
orized at a total cost not exceeding $1,000,000.00 (excluding
any cost defrayed with moneys other than the principal amount of
the 1972 bonds).
Section 6. Description of Project. The Project, as
delineated in the preambles hereof, is more specifically shown
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and described in the preliminary report, maps, plans, and speci-
fications prepared therefor by the Project Engineer; and reference
for further details is hereby made to such preliminary report,
maps, plans and specifications now on file and available for
inspection in the office of the Clerk of the City.
Section 7. .Necessity of Bonds. For the purpose of
providing funds to defray the cost of the Project, it is hereby
declared necessary that the City issue its "City of Chubbuck,
Idaho, Sewer Revenue Bonds, Series October 1, 1972" in the ag-
gregate principal amount of $1,000,000.00, the bonds being pay-
able, as to all Bond Requirements, solely from the net revenues
derived from rates and charges for the use of, and the service
rendered by, the sewerage system, being the gross revenues after
the deduction only for all operation and maintenance expenses,
and that the City pledge irrevocably and exclusively (except as
hereinafter otherwise provided) such net revenues to the payment
of the Bond Requirements of the bonds, the proceeds thereof to
be used solely for the Project, pursuant to the Act and all laws
thereunto enabling.
Section 8. Authorization of Bonds. In order to pro-
vide funds to defray the cost of the Project, the 1972 bonds,
constituting revenue bonds of the City, are hereby authorized
to be issued in the aggregate principal amount of $1,000,000.00.
Section 9. Bond Details. The 1972 bonds shall be
dated as of the first day of October, 1972, consisting of 200
bonds in the denomination of $5,000.00 each, numbered consecu-
tively from 1 through 200, bearing interest at a rate or rates
not exceeding six per centum (6%) per annum, evidenced by in-
terest coupons attached to the bonds, payable semiannually on
the first days of April and October in each year, commencing on
the first day of October, 1974, (interest normally payable and
represented by coupons from October 1, 1972 to April 1, 1974
are not included and will not be printed; coupon number 1, on
all bonds, will represent interest only for the period from
April 1, 1974 to October 1, 1974), and such bonds being numbered
and maturing serially in regular numerical order on the first
day of October in each of the designated amounts and designated
years, as follows:
Bond Numbers
(All IncluSive)
1
2 - 3
4 - 5
6 - 7
8 - 9
Principal Years
Maturing Maturing
$ 5,000 1975
10,000 1976
10,000 1977
10,000 1978
10,000 1979
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Bond Numbers
(All Inclusive)
Principal Years
Maturing Maturing
10 - 11 $ 10,000 1980
12 - 13 10,000 1981
14 - 15 10,000 1982
16 - 17 10,000 1983
18 - 19 10,000 1984
20 - 22 15,000 1985
23 - 25 15,000 1986
26 - 28 15,000 1987
29 - 31 15,000 1988
32 - 34 15,000 1989
35 - 38 20,000 1990
39 - 42 20,000 1991
43 - 46 20,000 1992
47 - 50 20,000 1993
51 - 54 20,000 1994
55 - 59 25,000 1995
60 - 64 25,000 1996
65 - 69 25,000 1997
70 - 75 30,000 1998
76 - 81 30,000 1999
82 - 87 30,000 2000
88 - 94 35,000 2001
95 - 101 35,000 2002
102 - 109 40,000 2003
110 - 117 40,000 2004
118 - 125 40,000 2005
126 - 134 45,000 2006
135 - 143 45,000 2007
144 - 153 50,000 2008
154 - 164 55,000 2009
165 - 175 55,000 2010
176 - 187 60,000 2011
188 - 200 65,000 2012
The Bond Requirements of the bonds shall be payable in lawful
money of the United States of America, without deduction for
exchange or collection charges, at the Paying Agent. If any
of the bonds shall not be paid upon its presentation at maturity,
it shall continue to draw interest at the rate of 6% per annum
until the principal thereof is paid in full. Any registered
single bond issued as hereinafter provided shall mature in install-
ments in the designated amounts on the designated dates set forth
above, except for any such amounts purchased by other than the
HUD and not evidenced by the single bond.
Section 10. Prior Redemption. The bonds numbered 1
through 15, maturing on and before the first day of October,
1982, shall not be subject to redemption prior to their respec-
tive maturities (except as herein otherwise provided). The bonds
numbered 16 through 200, maturing on and after the first day of
October, 1983, shall be subject to redemption prior to their
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respective maturities, in whole, or in part in inverse numerical
order, at the option of the City, on the first day of April,
1983, or on any interest payment date thereafter prior to matur-
ity, at a price equal to the principal amount of each bond so
redeemed, accrued interest thereon to the redemption date, and
a premium computed in accordance with the following schedule:
3% if redeemed April 1 1983 through
October 1, 1987, inclusive;
2-1/2% if redeemed April 1, 1988 through
October 1, 1992, inclusive;
2% if redeemed April 1, 1993 through
October 1, 1997;
1-1/2% if redeemed April 1, 1998 through
October 1, 2002;
1% if redeemed April 1, 2003 through
October 1, 2005, inclusive; and
0% if redeemed April 1, 2006, or
thereafter;
notwithstanding the foregoing, the City reserves the right, at
its option, to redeem the 1972 bonds prior to their respective
maturities, in whole, or in part in inverse numerical order, at
any time after the Project is completed, if there then are bond
proceeds unused, unencumbered and available for such prior re-
demption, including, without limitation, any grants-in-aid from
the government or the State resulting in surplus bond proceeds
whether or not they are fully expended prior to the receipt of
such grants by the City, as to all or a part of the 1972 bonds
but only to the extent of such surplus proceeds; and at any
time as to all or a part of the 1972 bonds held by the federal
government, which may be called without notice by publication and
without any prior redemption premium. In the case of any regis-
tered single bond then owned or held by the federal government,
installments of principal in the amount of $5,000.00 or an even
multiple thereof, shall be subject to prepayment at the option of
the City, in whole, or in part in inverse chronological order, at
any time, as if such installments of principal are respectively
evidenced by the above-designated bonds in the denomination of
$5,000.00 each.
Section 11. Prior Redemption Notice. Notice of any
prior redemption shall be given by the Treasurer of the City,
in its name:
A. Published Notice. By publication of such
notice at least once, not less than 30 days nor more
than 45 days prior to the redemption date, in a news-
paper of general circulation in the City, as the Council
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may otherwise determine, and
B. Mailed Notice. By mailing a copy of such notice
by first-class mail, postage prepaid, at least 30 days
but not more than 45 days prior to the redemption date,
to each of the following:
(1) To the Purchaser (other than the government)
of the bonds or any block thereof;
(2) If any of the bonds to be redeemed are then
registered for payment as to principal to each person
whose name or address appears on the registration book
of the City as a registered owner of any bonds; and
(3) As to any bond then owned by the United
States of A~erica or any department, agency, in-
strumentality or corporation thereof (herein the
"government"), acting by and through the Department
of Housing and Urban Development, or otherwise, to the
HUD, Regional Office, Seattle, Washington, or to such other
address as the government shall designate.
Such notice shall specify the number or numbers of the bonds to be
so redeemed (if less than all are to be redeemed) and the date
fixed for redemption; and such notice shall further state that
on such redemption date there shall become and be due and pay-
able upon each bond so to be redeemed at the Paying Agent,
the principal amount thereof and accrued interest thereon to
the redemption date, and the stipulated premium, if any, and
that from and after such date interest shall cease to accrue.
Notice having been given in the manner hereinbefore provided,
the bond or bonds so called for redemption shall become due
and payable on the redemption date so designated; and upon
presentation thereof at such place, together with all appur-
tenant coupons maturing subsequent to the redemption date, if
any, the City will pay the bond or bonds so called for redemp-
tion. If the government owns all of the bonds and any coupons
then outstanding, any published notice of redemption is unneces-
sary.
Section 12. Certification of Notice Given. A certi-
ficate by the Treasurer that notice of call and redemption has
been given to each of the following:
A. Purchaser. The Purchaser other than the
government, if any,
B. Registered Owners. Each holder of a regis-
tered bond, if any, and
C. Government. The government, if any bond is
owned or insured thereby,
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shall be conclusive as against all parties; and no holder whose
registered bond is called for redemption or any other holder
of any bond may object thereto or may object to the cessation
of interest on the redemption date on the ground that he failed
actually to receive such notice of call and redemption.
Section 13. Negotiability. The 1972 bonds (other
than any single bond) shall be fully negotiable in form and
payable to bearer or if registered, to the registered holder
or holders thereof, and, subject to the provisions expressly
made or necessarily implied herein, shall have all the quali-
ties of negotiable paper; and the holder or holders thereof
shall possess all rights enjoyed by the holders of negotiable
instruments under the provisions of the Uniform Commercial Code--
Investment Securities. Title to any such bond shall pass by
delivery in the same manner as a negotiable instrument payable
to bearer, unless such bond is registered in the manner herein
provided. Title to any coupon shall pass by delivery in the
same manner as any negotiable instrument payable to bearer.
Section 14. Registration for Payment. Any bond (other
than any single bond) may be registered for payment only as to
principal. The Treasurer of the City is appointed registrar
(herein the "Registrar") and shall maintain books for the regis-
tration, transfer and conversion of bonds. The Registrar shall
register or permit to be transferred or discharged from regis-
tration any bond presented for such purpose, subject to such
reasonable regulations as the Registrar may prescribe and after
the City is reimbursed for any tax or governmental charge payable
in connection therewith.
Section 15. Registration Procedure. Any bond (other
than any single bond) may be registered at the holder's option
only as to principal upon presentation to the Registrar, accom-
panied by all unmatured coupons. The Registrar shall note such
registration on the registration books and on the registration
panel on the back of the bond. Any registered bond may be trans-
ferred only upon a duly executed assignment by the registered
owner or his legal representative in form satisfactory to the
Registrar. Such transfer shall be noted on the registration
books and on the bond. The principal of any registered bond
shall be payable only to, or upon the order of, the registered
owner or his legal representative. Any registered bond may be
reconverted into a bond payable to bearer upon presentation to
the Registrar accompanied by an authorization in form satisfac-
tory to the Registrar. The Registrar shall note on the bond
that it is payable to bearer. Upon reconversion of bonds, the
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Registrar shall require the payment of all expenses incurred by
the City in connection with the registration.
Section 16. Ownership of Bonds. The City and the
Registrar may treat the bearer of any unregistered bond or bond
registered to bearer, or coupons appurtenant thereto, as the
absolute owner thereof, whether or not such bond or coupon shall
be overdue. The City and the Registrar may treat the person in
whose name any bond is registered as the absolute owner thereof,
whether or not such bond shall be overdue. All payments made as
provided in this ordinance shall be valid and effectual to dis-
charge the liability upon any bonds to the extent of the amount
paid.
Section 17. Filing Signatures. Prior to the execu-
tion of any bond (other than any single bond), pursuant to the
Uniform Facsimile Signature of Public Officials Act, adopted as
Chapter 11, Session Laws of Idaho 1959, also cited as Sections
59-1018 through 59-1023, Idaho Code, the Mayor, the Treasurer,
and the Clerk shall each forthwith file with the Secretary of
State his manual signature certified by him under oath.
Section 18. Execution of Bonds. The bonds (other
than any single bond) shall be executed and signed in the name
of and on behalf of the City with the engraved, imprinted,
stamped or otherwise reproduced facsimile of the signature of
the Mayor of the City, shall be manually subscribed and counter-
signed by its Treasurer, and shall be signed, executed and at-
tested with such a facsimile signature of its Clerk under a
printed, engraved, stamped, or otherwise placed thereon fac-
simile of the official seal of the City. Any single bond shall
be executed in a like manner but with manual signatures of such
officials and with the official seal of the City manually affixed
thereon.
Section 19. Form and Execution of Coupons. There shall
be attached to each bond (other than any single bond) an appro-
priate number of interest coupons payable to bearer consecutively
numbered from one upwards, commencing with that coupon first
maturing (i.e. the coupon for the October 1, 1974 interest payment).
All such interest coupons shall state on the face thereof the
amount thereof, the name of the City, the identifying series, and
the issue and number of the bond to which it is attached; and each
such coupon shall provide for the payment of the interest accruing
thereon semiannually and at the same place of payment as fixed
in such bond, and shall be signed by the Treasurer by his fac-
simile signature which officer by the execution of the bonds and
a signature certificate pertaining thereto shall adopt as and for
his signature the facsimile thereof appearing on the coupons.
-14-
Section 20. Predecessors' Signatures. The bonds
(including any single bond) and coupons bearing the signature
of the officers in office at the time of the signing thereof
shall be the valid and binding obligations of the City, notwith-
standing that before the delivery thereof and payment therefor,
any or all of the persons whose signatures appear thereon shall
have ceased to fill their respective offices.
Section 21. Incontestable Recital and Tax Exemption.
Pursuant to Section 50-1038 of the Act, the 1972 bonds shall
recite that they are issued pursuant to the Act, which recital
shall be conclusive evidence of their validity and of the regu-
larity of their issuance. Pursuant to Section 50-1042 of the Act,
the 1972 bonds and the income therefrom shall be exempt from
taxation, except transfer and estate taxes.
Section 22. Registration of Bonds. Before any bonds
are delivered, they shall be registered by the Clerk and the
Treasurer in permanent public record books kept in their offices
for that purpose, in full conpliance with the law. The register
shall show the number of each bond, its date and amount, rate
of interest, date and amount of sale, when and where payable,
and the names and addresses of the purchasers, and the number
and denomination of the coupons attached to the bond.
Section 23. Bond Delivery. After the bonds have been
duly-executed and sold and after such registration by the Clerk
and the Treasurer, the Treasurer shall cause the bonds to be
delivered to each Purchaser thereof, upon payment being made
therefor on the terms of the sale of the bonds.
Section 24. Bond coupon Form. Subject to the pro-
visions of this ordinance and any instrument supplemental there-
to, each bond and the coupons to be attached thereto shall be,
respectively, in substantially the following form, with such
omissions, insertions, endorsements and variations as to any
recitals of fact or other provisions as may be required by the
circumstances, or be required or permitted by this ordinance:
(Form of Bond)
STATE OF IDAHO
UNITED STATES OF AMERICA
COUNTY OF BANNOCK
CITY OF CHUBBUCK
SEWER REVENUE BOND
SERIES OCTOBER 1, 1972
NO. $5,000.00
The City of Chubbuck (herein the "City"), in the
County of Bannock and State of Idaho (herein the "State"),
for value received, hereby promises to pay the bearer hereof, sole-
ly from the special funds provided therefor, as hereinafter set
forth, on the first day of October, 19 , the principal sum of
FIVE THOUSAND DOLLARS
and to pay from such special funds interest hereon from April 1,
1974, until maturity of the rate of % per annum, according to
the interest coupons hereto attached, on the first day of
October, 1974, and semiannually thereafter on the first day of
April ~nd October in each year, upon presentation and surrender
of this bond and the annexed interest coupons as they severally
become due. If, upon presentation at maturity, payment of this
bond is not made as herein provided, interest hereon shall con-
tinue at the rate of 6% per annum until the principal hereof is
paid in full. The principal, any prior redemption premium due,
and the interest (herein the "Bond Requirements") are payable in
lawful money of the United States of America, without deduction
for exchange or collection charges, at The Idaho First National
Bank (Pocatello Office), in Pocatello, Idaho, or, at the option of
the holder, at the Morgan Guaranty and Trust Company, New York,
New York.
Bonds of the series of which this bond is one (herein
the "1972 bonds" and merely the "bonds"), maturing on and after
the first day of October, 1983, are s~bjeCt to redemption prior
to their respective maturities, in whole, or in part in inverse
numerical order, at the option of the City, on the first day of
April, 1983, or on any interest payment date thereafter, at a price
equal to the principal amount of each bond so redeemed, accrued
interest thereon to the redemption date, and a premium computed
in accordance with the following schedule:
3% if redeemed April 1, 1983 through
October 1, 1987, inclusive;
2-1/2% if redeemed April 1, 1988 through
October 1, 1992, inclusive:
2% if redeemed April 1, 1993 through
October 1, 1997;
-16-
1-1/2% if redeemed April 1, 1998 through
October 1, 2002;
1% if redeemed April 1, 2003 through
October 1, 2005, inclusive; and
0% if redeemed April 1, 2006, or
thereafter.)
The City also reserves the right, at its option, to
redeem the bonds of the series of which this bond is one prior
to their respective maturities, in whole, or in part in inverse
numerical order at any time after the Project is completed, if
there then are bond proceeds unused, unencumbered and available
for such prior redemption, including, without limitation, any
grants-in-aid from the United States of America, or any depart-
ment, agency, instrumentality or corporation thereof (herein
"government") or the State resulting in surplus bond proceeds
whether or not they are fully expended prior to the receipt of
such grants by the City, as to all or a part of the 1972 bonds
but only to the extent of such surplus proceeds; or at any time
as to all or a part of the 1972 bonds held by the govern-
ment. Redemption shall be made upon not less than 30 days'
nor more than 45 days' prior notice by publication in a newspaper
of general circulation in the City and by mail, in the manner and
upon the conditions provided in the ordinance authorizing the
issuance of the bonds, designated in Section 1 thereof by the
short title "10-1-72 Bond Ordinance" (herein the "ordinance").
A copy of the ordinance is on file in the office of the Clerk of
the City for public inspection.
Payment of the Bond Requirements of the 1972 bonds shall
be made solely from, and as security for such payment there are
pledged, pursuant to the ordinance, two special accounts iden-
tified as the "City of Chubbuck, Idaho, Sewer Revenue Bonds, Ser-
ies October 1, 1972, Interest and Bond Retirement Fund," and as
the "City of Chubbuck, Idaho, Sewer Revenue Bonds, Series Octo-
ber 1, 1972, Reserve Fund," into which the City covenants to pay
respectively from the revenues derived from the operation of its
municipal sewer system (herein the "system"), after provision
only for all necessary and reasonable expenses of the operation
and maintenance of the system, sums sufficient to pay when due
the Bond Requirements of the bonds and to create and maintain a
reasonable and specified reserve for such purpose. For a des-
cription of such funds and the nature and extent of the security
afforded thereby for the payment of the Bond Requirements of the
bonds, reference is made to the ordinance.
-17-
The City covenants and agrees with the holder of this
bond and with each and every person who may become the holder
thereof that it will keep and perform all the covenants of the
ordinance, including, without limitation, its covenant against
the sale or mortgage of the system or any part thereof unless
provision shall have been made for the payment of the Bond Re-
quirements of the bonds, its covenant that it will prescribe
and collect rates, fees and charges, including the levy or assess-
ment or such rates, fees and charges against governmental units
or departments or agencies, including the State and its subdivi-
sions, for the services and facilities furnished by the system,
and its covenant that it will provide methods of collections and
penalties, including denial of service for non-payment of such
rates, fees and charges, and to produce revenues or earnings
annually to pay the operation and maintenance expenses and to
produce net revenues in each year equal to at least 140% of the
combined average annual principal and interest requirements on
all outstanding 1972 bonds and any other bonds or obligations
payable from the revenues of the system, the lien of which is
on a parity with the lien on the revenues of the system of the
1972 bonds and including its covenant to maintain necessary
reserves therefor, in accordance with~the provisions of the ordinance
The 1972 bonds are equally and ratably secured by,
without priority by reason of number, date of bonds, date of
sale, date of execution, or date of delivery, and the bonds
constitute, an irrevocable first lien (but not necessarily an
exclusively first lien) on the net revenues derived from the
sewerage system. Bonds in addition to the 1972 bonds may be
issued payable from such net revenues and having a lien thereon
subordinate and junior to the lien, or subject to designated
conditions having a lien thereon on a parity with the lien of the
1972 bonds, in accordance with the provisions of the ordinance.
This bond is one of a duly authorized issue of 200
bonds known as the "City of Chubbuck, Idaho, Sewer Revenue Bonds,
Series October 1, 1972," of like tenor and date, except as to
number, prior redemption option and price, maturity, and possibly
interest rate, in an aggregate principal amount of not exceeding
$1,000,000.00, for the purpose of providing funds with which to
construct and acquire a municipal sanitary sewerage system (herein
the "Project"), under the authority of and in full conformity with
the Constitution and laws of the State of Idaho and pursuant to
such ordinance of the City adopted, published and made a law
thereof prior to the issuance of this bond. The issuance of this
bond was authorized by the affirmative vote of a two-thirds major-
-18-
ity of the qualified electors of the City voting at an election
therein on the 7th day of March, 1972.
To the extent and in the respects permitted by the
ordinance, the provisions of the ordinance or any ordinance amen-
datory thereof or supplemental thereto may be modified or amended
by action of the City taken in the manner and subject to the
conditions and exceptions prescribed in the ordinance. The
pledge of revenues and other securities of the City under the
ordinance may be discharged at or prior to the respective ma-
turities or the prior redemption of the 1972 bonds upon the
making of provision for the payment thereof on the terms and
conditions set forth in the ordinance.
This bond may be registered for payment only as to
principal in the name and address of the holder subject to the
terms and 'conditions set forth hereon and in the ordinance, and
unless so registered, this bond shall be transferable by deli-
very. If this bond is registered, it may be reconverted into
a coupon bond payable to bearer as provided in the ordinance.
Subject to the provisions for registration for
payment endorsed hereon and stated in the ordinance, this bond
is subject to the conditions, and every holder hereof by accept-
ing the same agrees with the obligor and every subsequent holder
hereof, that (a) the delivery of this bond to any transferee
shall vest title in this bond and in the interest coupons attached
hereto in such transferee to the same extent for all purposes as
would the delivery under like circumstances of any negotiable
instrument payable to bearer; (b) the obligor and any agent of
the obligor may treat the bearer of this bond as the absolute
owner hereof for all purposes, and shall not be affected by any
notice to the contrary; (c) the Bond Requirements of this bond
shall be paid and this bond and each of the coupons pertaining
thereto are transferable, free from and without regard to any
equities between the obligor and the original or any intermediate
holder hereof or any set-offs or crossclaims; and (d) the surren-
der to the obligor or any agent of the obligor of this bond and
of each of the coupons, if any, shall be a good discharge to
the obligor for the same.
It is hereby recited that this bond and the series of
which it is ~one are issued pursuant to the Revenue Bond Act, now
cited as sections 50m1027 through 50m1042, Idaho Code, as amended
from time to time, and all other laws thereunto enabling, and this
recital shall be conclusive evidence of the validity of the bonds
and the regularity of their issuance.
-19-
This bond and the series of which it is one, including
interest thereon, do not constitute a debt of the City within
the meaning of any constitutional or statutory limitations or
restrictions, and the City shall not be liable thereon, nor is
this bond payable out of the City's general fund or any other
fund other than the revenues pledged for the payment thereof,
but is payable solely from the revenues so pledged.
This bond and the issue of which it is one, together
with the interest thereon, are exempt from taxation under the
laws of the State of Idaho, except transfer and estate taxes.
It is further certified, recited and warranted that
all requirements of law have been fully complied with by the
proper officers of the City in th, e issue of this bond.
IN TESTIMONY WHEREOF, the City of Chubbuck has caused
this bond to be executed and signed in the corporate name of
the City with the facsimile signature of its Mayor, to be man-
ually subscribed and countersigned by the City Treasurer, and to
be signed, executed and attested with the facsimile signature
of the City Clerk under a facsimile of the official seal of the
City, and has caused the attached coupons to be signed with the
facsimile signature of the City Treasurer, who, by the execution
of this bond, does adopt as and for his own proper signature his
facsimile signature on each of such coupons, all as of the first
day of October, 1972.
CITY OF CHUBBUCK
By:
(For Facsimile Signature)
Mayor
Countersigned:
(Forl Manual Signature)
City Treasurer
(FACSIMILE SEAL)
Attest:
(For Facsimile Signature)
City Clerk
(End of Form of Bond)
-20-
(Form of Registration Panel on Back of Bonds)
PROVISIONS FOR REGISTRATION
This bond may be registered for payment in the name
of the holder, only as to principal, on the books of the City
in the office of its Treasurer as Registrar. Upon presentation
hereof to the Registrar, at his office in Chubbuck, Idaho,
together with the unmatured coupons, he shall note the existence
of the coupons and shall make the principal payable only to
or upon the order of, the registered owner or his legal repre-
sentative upon making a notation of such registration in the
registration blank below. After registration no transfer shall
be valid unless made on such books by the registered owner or
his legal representative duly authorized in writing and similarly
noted in the registration blank below.
At the request of the registered owner or his legal
representative duly authorized in writing, this bond, whenever
registered, may be converted into a coupon bond payable to
bearer at the expense of the registered owner upon presentation
hereof to the Registrar with a written instrument of transfer
to bearer satisfactory to the Registrar duly executed by such
registered owner or his legal representative. Such coupon bond
may again be registered as to principal as hereinabove provided.
Upon any such conversion of this bond, coupons for every unpaid
installment of interest on this bond due at or prior to its
maturity shall be noted as being attached hereto by the Registrar,
and the Registrar shall note in the registration blank below that
this bond is transferred and registered to bearer.
Any registration, transfer or discharge from registra-
tion is subject to such reasonable rules and regulations as the
City or the Registrar may prescribe. Except as otherwise pro-
vided herein and in the ordinance authorizing the issuance of
the bonds of the series of which this is one, no charge shall
be made to the holder hereof for the privilege of registration,
transfer or discharge from registration. Every privilege of
registration, transfer, discharge from registration, or conver-
sion hereinabove provided shall be exercised only in accordance
with and subject to the terms and provisions of such ordinance.
During the 15 days next preceding any date for payment of interest
on this bond, neither the City nor the Registrar shall be required
to make any registration, transfer, discharge or conversion.
Each such registration, transfer or discharge from registration
is subject to the payment of a charge sufficient to reimburse
the City and the Registrar for any tax or other governmental
charge not fixed by the City and paid or to be paid by either
or both of them in connection therewith.
Date of Name of Address Signature
Registration Owner of Owner of
Regis trar
(End of Form of Registration Panel on Back of Bond)
-22-
(Form of Coupon)
Coupon
No.
*$
April,
On the first day of October 19 , the City of
Chubbuck, in the County of Bannock and State of Idaho, upon
the surrender of this coupon, unless prior to the maturity of
this coupon, the bond to which this coupon is attached, if
callable, has been called for prior redemption, will pay to
bearer the amount herein stated in lawful money of the United
States of America, without deduction for exchange or collec-
tion charges, at The Idaho First National Bank (Pocatello Office),
in Pocatello, Idaho, as Paying Ag,ent, or at the option of the
holder at The Morgan Guaranty and Trust Company, New York,
New York, as Co-Paying Agent, solely from and secured by a
pledge of two special accounts created from the net revenues
derived from the operation of the municipal sewer system of the
City, and being interest then due on its City of Chubbuck,
Idaho, Sewer Revenue Bond, Series October 1, 1972, and bearing
Bond
No.
(For Facsimile Signature)
City Treasurer
(Coupon No. 1 attached to each bond and becoming due on
October 1, 1974, evidences six months' interest. Each
other coupon evidences six months' interest.)
(End of Form of Coupon)
-23-
(Form of Registration Certificate)
We, the undersigned, the duly appointed, qualified
and acting City Clerk and City Treasurer, respectively, of
the City of Chubbuck, Bannock County, Idaho, do hereby certify
that the within bond has been duly registered in permanent pub-
lic record books kept in our offices for that purpose in full
compliance with law, showing the number of the bond, its date
and amount, rate of interest, date and amount of sale, when and
where payable, and the names and addresses of the purchasers,
and the n~mber and denomination of the coupons attached to the
bond.
IN WITNESS WHEREOF, we have hereunto set our hands
and the seal of the City of Chubbuck, Idaho, as of the first
day of October, 1972.
(For Manual Signature)
City Clerk
(For Manual Signature)
City Treasurer
(End of Form of Certificate)
-24-
Section 25. Use of Single Bond. Notwithstanding the
foregoing provisions hereof, if HUD is the purchaser of the entire
issue of bonds, money borrowed from the HUD shall be evidenced
by a non-negotiable single bond in the principal amount and denom-
ination of $1,000,000 (or such lesser amount as is actually loaned
to the City by the HUD under the Loan Agreement) numbered R-l,
which single bond shall be executed in the name of and on the
behalf or the City and manually signed by the Mayor, manually
countersigned by the Treasurer, ~nd manually signed, executed
and attested by the Clerk, with the seal of the City manually
affixed thereto. The single bond shall bear no interest coupons
and shall be payable in lawful money of the United States of
America, without deduction for exchange or collection charges,
during the time the HUD is the registered owner of the single
bond, or at such address as the HUD may designate, and so pay-
able during the time any registered assignee of the HUD is the
registered owner of the single bond, at the address shown on the
registration book of the City. The single bond shall mature in
installments of principal, substantially as provided in Sec-
tions 9 through 11 hereof. The single bond shall be registered
by any holder, and may be assigned in the manner and with the
effect set forth in the provisions for registration contained
in the form of single bond hereinafter set forth, and as herein
further provided. Upon request of the holder of the single bond,
the City shall issue, at the holder's expense and within 90
days from the date of such request, negotiable, bearer, coupon
bonds or serial registered bonds with coupons, in the denomina-
tion of $5,000.00 each, to the extent practicable, as requested
by the holder, in an aggregate principal amount equal to the amount
of the unpaid principal of the outstanding single bond of like
tenor and date, in the form prescribed by, and subject to,
the provisions of this ordinance, and the City Council hereby so
covenants.
Section 26. Form of Single Bond. The single bond,
the form of assignment therefor, and the payment records to be
attached thereto, shall be in substantially the following form:
-25-
(Form of Single Bond)
UNITED STATES OF AMERICA
STATE OF IDAHO COUNTY OF BANNOCK
CITY OF CHUBBUCK
SEWER SYSTEM SINGLE
REGISTERED SEWER REVENUE BOND
SERIES OCTOBER 1, 1972
No. R-1
*$1,000,000.00
The City of Chubbuck (herein the "City"), in the
County of Bannock and State of Idaho (herein the "State"), for
value received prOmises to pay to the registered owner hereof,
solely from the special funds provided therefor, the principal
sum above stated representing the aggregate advances made to
the City by the United States Department of Housing and Urban
Development (herein the "HUD"), as set forth in the schedule on
the reverse side hereof, on the first day of October in each of
the designated years and designated installments of principal, as
follows:
Years Maturing
(All IncluSive)
Principal Years Maturing Principal
Amounts (Ail InclusiVe) Amounts
'1975 $ 5,000.00 2008
1976 - 1984 10,000.00 2009 - 2010
1985 - 1989 15,000.00 2011
1990 - 1994 20,000.00 2012
1995 - 1997 25,000.00
1998 - 2000
2001 - 2002
2003 - 2005
2006 - 2007
$ 50,000.00
55,000.00
60,000.00
65,000.00
30,000.00
35,000.00
40,000.00
45,000.00
and to pay to the registered owner hereof from such special funds
interest on the unpaid balance of such advances of principal from
April 1, 1974 to the respective above-designated principal install-
ment payment dates at the rate of 6% per annum, on the first day
of October, 1974, and semiannually thereafter on the first days
of April and October in each year. If payment of any installment
of principal is not made as herein provided, interest thereon
shall continue at the rate of 6% per annum until such installment
of principal is paid in full. The principal and interest (herein
the "Bond Requirements") are payable in lawful money of the
United States of America, without deduction for exchange or collec-
* (Make appropriate modifications if the aggregate advances
by the HUD total .less than $1,000,000.00)
-26-
tion charges,, during the period the HUD is the registered owner
of this single bond at such place as HUD may from time to time
designate, and are payable during any period the HUD is not the
registered owner hereof at the address shown on the registration
book of the City. The final installment of principal and interest
due on this single bond is payable only upon the bond's surrender
to the City.
Installments of principal of this bond coming due on
and after the first day of October, 1983, are subject to redemp-
tion in installments of principal in the amount of $5,000.00 or
an even multiple thereof, prior to their respective payment
dates in whole, or in part in inverse chronological order of pay-
ment at the option of the City, on the first day of April, 1983,
or on any interest payment date thereafter, at a price equal to
the principal amount of each installment so paid, accrued
interest thereon to the redemption date, and a premium computed
in accordance with the following schedule:
3% if redeemed April 1, 1983 through
October 1, 1987, inclusive;
2-1/2% if redeemed April 1, 1988 through
October 1, 1992, inclusive;
2% if redeemed April 1, 1993 through
October 1, 1997;
1-1/2% if redeemed April 1, 1998 through
October 1, 2002;
1% if redeemed April 1, 2003 th.rough
October 1, 2005, inclusive; and
0% if redeemed April 1, 2006, or
thereafter. )
The City also reserves the right, at its option, to
redeem the installments of this bond prior to their respective
payment dates, in whole, or in .part in inverse chronological
order at any time after the Project is completed, if there then
are bond proceeds unused, unencumbered and available for such
prior redemption, including, without limitation, any grants-in-
aid from the United States of America, or any department, agency,
instrumentality or corporation thereof~(herein "government") or
the State resulting in surplus bond proceeds whether or not they
are fully eXpended prior to the receipt of such grants by the City,
as to all or a part of the 1972 bonds but only to the extent of
such surplus proceeds; or at any time as to all or a Dart of
such installments of principal of this single bond and without
the payment of any "prepayment of installment" or "prior redemp-
tion'' premium, while it is held by the government.
~27-
Each such prepayment of an installment of principal shall be
made upon not less than 30 days' nor more than 45 days' prior
mailed notice in the manner and upon the conditions provided
in the ordinance authorizing the issuance of this single bond
and any other bonds of the same series in the denomination of
$5,000.00 each (herein collectively the "1972 bonds" and
merely the "bonds"), designated in Section 1 thereof by the
short title "10-1-72 Bond Ordinance" (herein the "ordinance").
A copy of the ordinance is on file in the office of the Clerk of
the City for public inspection.
Payment of the Bond Requirements of this single 1972
bond shall be made solely from, and as security for such payment
there are pledged, pursuant to the ordinance, two special accounts
identified as the "City of Chubbuck, Idaho, Sewer Revenue Bonds,
Series October 1, 1972, Interest and Bond Retirement Fund," and
as the "City of Chubbuck, Idaho, Sewer Revenue Bonds, Series
October '1, 1972, Reserve Fund," into which the City covenants to
pay respectively from the revenues derived from the operation of
its municipal sewer system (herein the "system"), after provision
only for all necessary and reasonable expenses of the operation
and maintenance of the system, sums sufficient to pay when due
the Bond Requirements of this single bond and to crea~e and main-
tain a reasonable and specified reserve for such purpose. For
a description of such funds and the nature and extent of the
security afforded thereby for the payment of the Bond Requirements
of the bonds, reference is made to the ordinance.
The City covenants and agrees with the holder of this
bond and with each and every person who may become the holder
thereof that it will keep and perform all the covenants of the
ordinance, including, without limitation, its covenant against
the sale or mortgage of the system or any part thereof unless
provision shall have been made for the payment of the Bond Re-
quirements of the bonds, its covenant that it will prescribe
and collect rates, fees and charges, including the levy or assess-
ment or such rates, fees and charges against governmental units
or departments or agencies, including the State and its subdivi-
sions, for the services and facilities furnished by the system,
and its covenant that it will provide methods of collections and
penalties, including denial of service for non-payment of such
rates, fees and charges, to produce revenues or earnings annually
to pay the operation and maintenance expenses and to produce
net revenues in each year equal to at least 140% of the combined
average annual principal and interest requirements on all out-
standing 1972 bonds and any other bonds or obligations payable
from the revenues of the system, the lien of which is on a par-
-28-
ity with the lien on the revenues of the system of the 1972 bonds
and including its covenant to maintain necessary reserves there-
for ,in accOrdance with the provisions of the ordinance.
The 1972 bonds are equally and ratably secured by,
without priority by reason of number, date of bonds, date of
sale, date of execution, or date of delivery, and the bonds
constitute, an irrevocable first lien (but not necessarily an
exclusively first lien) on the net revenues derived from the
sewerage system. Bonds in addition to the 1972 bonds may be
issued payable from such net revenues and having a lien thereon
subordinate and junior to the lien, or subject to designated
conditions having a lien thereon on a parity with the lien of the
1972 bonds, in accordance with the provisions of the ordinance.
This bond is one of a duly authorized issue of 200
bonds known as the "City of Chubbuck, Idaho, Sewer Revenue Bonds,
Series October 1, 1972," of like tenor and date, except as to
number, prior redemption option and price, maturity, and possibly
interest rate, in an aggregate principal amount of not exceeding,
$1,000,000.00, for the purpose of providing funds with which to
constr~ct and acquire a municipal sanitary sewerage system (herein
the "Project"), under the authority of and in full conformity with
the Constitution and laws of the State of Idaho and pursuant to
such ordinance of the City adopted, published and made a law
thereof prior to the issuance of this bond. The issuance of this
bond was authorized by the affirmative vote of a two-thirds major-
ity of the qualified electors of the City voting at an election
therein on the 7th day of March, 1972.
To the extent and in the respects permitted by the
ordinance, the provisions of the ordinance or any ordinance amen-
datory thereof or supplemental thereto may be modified or amended
by action of the City taken in the manner and subject to the
conditions and exceptions prescribed in the ordinance. The
pledge of revenues and other securities of the City under the
ordinance may be discharged at or prior to the respective ma-
turities or the prior redemption of the 1972 bonds upon the
making of provision for the payment thereof on the terms and
conditions set forth in the ordinance.
This bond is transferable only upon books kept by the
Treasurer of the City as bond registrar by the registered owner
hereof in person or by his duly authorized attorney, and simi-
larly noted hereon, or it may be surrendered in exchange for new
serial bonds of the same aggregate principal amount in coupon
form or in registered form, in the denomination of $5,000.00 each,
to the extent practicable and consistent with the maturity schedule
provided in, and s~bject to, the conditions set forth in the
ordinance.
-29 -
It is hereby recited that this single registered
bond and the series of which it is one are issued pursuant to
the Revenue Bond Act, now cited as Sections 50-1027 through 50-
1042, Idaho Code, as amended from time to time, and all other
laws thereunto enabling, and this recital shall be conclusive
evidence of the validity of the bonds and the regularity of their
issuance.
This bond and the series of which it is one, including
interest thereon, do not constitute a debt of the City within
the meaning of any constitutional or statutory limitations or
restrictions, and the City shall not be liable thereon, nor is
this bond payable out of the City's general fund or any other
fund other than the revenues pledged for the payment thereof,
but is payable solely from the revenues so pledged.
This bond and the issue of which it is one, together
with the interest thereon, are exempt from taxation under the
laws of the State of Idaho, except transfer and estate taxes.
It is f. urther certified, recited and wart.anted that
all requirements of law have been fully complied with by the
proper officers of the City in the issue of this bond.
IN TESTIMONY WHEREOF, the City of Chubbuck has caused
this bond to be executed and signed in the corporate name of
the City with the manual signature of its Mayor, to be manually
subscribed and countersigned by the City Treasurer, and to be
manually signed, executed and attested by the City Clerk, with
the official seal of the City manually affixed hereto, all as
of the first day of October, 1972.
CITY OF CHUBBUCK
By: (For Manual Signature) Mayor
Countersigned:
(For Manual Signature)
City Treasurer
(SEAL)
Attest:
(For Manual Signature)
City Clerk
(End of Form of Single Bond)
-30-
(Form of Installment Loan Panel on Back of Single Bond)
INSTALLMENT LOAN ADVANCES BY GOVERNMENT
The HUD on behalf of the United States of America
loaned to the City the respective amounts of principal on
the respective dates hereinafter designated, the sum of
which amounts constitutes the aggregate principal amount
of the within single bond, as follows:
Date o~ .....
Loan
if after Amount of Signature of
April 1, 1974 ... Loan City's Treasurer
April 1, 1974
(End of Form of Installment Loan Panel)
(Form of Registration Panel on Back of Single Bond)
MANDATORY REGISTRATION FOR PAYMENT AS TO
PRINCIPAL AND INTEREST
The within single bond is registered in the office
of the Treasurer of the City of Chubbuck, Idaho, as Registrar,
in the name of the last owner listed below; and the principal
amount of the bond and interest thereon shall be payable only
to such owner, all in accordance with the ordinance authorizing
the bond's issue.
Date o'f 'Name of Address of Signature of
Re gi s tr at.i0n Owner Owner ..Re gi.s tra r
United stat'eS" of
America, Depart-
ment of Housing
and Urban Develop-
ment
(End of Form of Registration Panel)
(Form of Assignment Panel on Back of Single Bond)
ASSIGNMENT PROVISION
For Value Received,
hereby assign and transfer unto
the within bond, together with accrued interest thereon, hereby
irrevocably constituting and appointing
attorney to transfer this bond on the books of
the City of Chubbuck, Idaho at the office of the Treasurer of the
City, with full power of substitution in the premises.
Dated:
(End of Form of Assignment Panel)
-32-
Section 27. Disposition of Bond Proceeds. The bond
proceeds shall be disposed of as follows:
A. Accrued Interest and Premium. Any moneys received
as accrued interest at the time of delivery of the bonds from
the sale thereof and any premium therefor shall be deposited
into the Bond Fund hereinafter created, to apply on the payment
of interest next due on the 1972 bonds.
B. A..c~uisition Fund. Except as hereinabove otherwise
provided, the proceeds derived from the sale of the 1972 bonds
shall be deposited promptly upon the receipt thereof in a
separate account in an Insured Bank designated by the City Council,
which account shall be known as the "City of Chubbuck, Idaho,
Sewer Revenue Bonds, Series October 1, 1972, Construction and
Other Acquisition Account" (herein the "Acquisition Fund"). The
moneys in the Acquisition Fund, except as herein otherwise spe-
cifically provided, shall be used and paid out solely for the
Project. Moneys shall be withdrawn from the Acquisition Fund for
the Project only upon warrants or checks drawn and signed by the
Mayor of the City and its Clerk.
C. Construction Work. ~No such warrant for any sum
for construction work shall be issued until the City Council has
received engineering approval certifying that such sum is due
and owing for work for the system, nor shall such warrant be
issued until the City Council has adopted a resolution accepting
such certificate and directing the drawing of such warrant or
check. The designated approval shall be by a representative of
the Project Engineer Which engineer's approval must be in the
form of a written certificate stating that the payment therein
approved is being made to pay for materials supplied or work
satisfactorily completed in substantiall accordance with the plans
and specifications for the work involved. Such certificate of
approval shall be in appropriate form, shall be signed by the
Project Engineer or its duly accredited representative, and by
the City's representative, and shall be filed with the City Clerk
prior to the time such payment or payments are authorized by reso-
lution.
D. ~Co'mple~tion ~of Work. When such work shall have been
completed in accordance with such plans and specifications and
all amounts due therefor, including all proper incidental expen-
ses, shall have been paid, the Project Engineer shall file with
the depositary bank a certificate so stating, and thereupon, if
any money remains in the ~Acquisition Fund, the City shall call
bonds for prior redemption as herein provided, shall transfer
from the account such remaining moneys for such purpose, and
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shall transfer to the Income Fund any amount not sufficient
to redeem a $5,000 bond or an installment of principal in a
like amount.
E. Purchasers Not Responsible. The purchasers of the
bonds and any subsequent holder thereof, however, shall in no
manner be responsible for the application or disposal of the
moneys derived from the sale thereof.
Section 28. Moneys for Project. All moneys received
and held by the City for the Project from all sources, except ~
as herein otherwise provided, shall be deposited in the Acquisi-
tion Fund, including, without limitation, any grants-in-aid from
the government allocated to the City for that purpose, the City's
share of any liquidated damages and other moneys paid by default-
ing contractors or their sureties, and the bond proceeds.
Section 29. Lien on Bond Proceeds. Until the proceeds
of the 1972 bonds are applied as hereinabove provided and used to
defray the cost of the Project from time to time, the bond proceeds
shall be subject to a lien thereon and pledge thereof for the
benefit of the holders of the bonds from time to time.
Section 30. Pledge Securin9 Bonds. Subject only to the
right of the City to cause amounts to be withdrawn to pay the
cost of the Project as provided herein, the net revenues and all
moneys and securities paid or to be paid to or held or to be held
in any account under this ordinance are hereby pledged to secure
the payment of the Bond Requirements of the 1972 bonds; and this
pledge shall be valid and binding from and after the date of the
first delivery of any bonds, and the moneys, as received by the
City and hereby pledged, shall immediately be subject to the lien
of this pledge and the obligation to perform the contractual
provisions hereby made shall have priority over any or all other
obligations and liabilities of the City, except for any other
outstanding securities hereafter authorized, the liens of which
on the pledged revenues shall be on a parity with the lien there-
on of the 1972 bonds; and the lien of this pledge shall be valid
and binding as against all persons having claims of any kind in
tort, contract or otherwise against the City (except as herein
otherwise provided) irrespective of whether such persons having
claims of any kind in tort, contract or otherwise against the
City (except as herein otherwise provided) irrespective of whether
.such persons have notice thereof, but in no event shall such lien
and pledge or any other provision herein prejudicially impair in
a substantial manner any obligation of contract under the Loan
Agreement or any federal law pertaining thereto.
~34-
Section 31. Period of Project's Usefulness. It is
hereby determined and recited that the period of usefulness of
the system to be acquired with the proceeds of the bonds is not
less than forty-one years from the date of the bonds.
Section 32. Fiscal Year. For the purpose of this
ordinance the system shall be operated upon a fiscal year basis,
commencing on the first day of January in each calendar year
and ending on the last day of December of the same calendar
year.
Section 33. Income Fund. A special fund and bank
account shall be created and maintained and be known as the
"City of Chubbuck Gross Income Sewer System Fund," herein some-
times designated as the "Income Fund". So long as any 1972
bonds shall be outstanding all income and revenues derived from
the operation of the sewer system shall be deposited into the
Income Fund.
Section 34. Administration of Income Fund. So long
as any of the 1972 bonds are outstanding, as to any Bond Require-
ments, the following payments shall be made from the Income Fund:
A. Operation and Maintenance Expenses. Firstly, as a
first charge thereon, there shall be set aside each month as an
operation and maintenance account, such a sum equal to the reas-
onable percentage of the Income Fund as the City Council shall
determine to be reasonable and necessary for the proper operation
and maintenance of the system, and such moneys shall be used
solely therefor, including, without limitation, the cost of all
salaries, necessary repairs, labor, materials, adequate insurance,
and bank collection and other proper charges concerning the ac-
counts and revenue bonds, and other obligations in connection with
the system. Any surplus remaining at the end of the fiscal year
and not needed for operation and maintenance purposes, shall be
transferred to the Income Fund and be used for the purposes
thereof, (the Council may provide, however, for an amount to be
held as a reserve for operation and maintenance purposes not in
excess of twenty per cent (20%) of the estimated operation and
maintenance expenses of the then current fiscal year) as herein
provided.
B. ~ B~ond Fund. Payments. Secondly, from any moneys
remaining in the Income F~nd there shall be deposited into a
separate fund hereby created to be known as the "City of Chubbuck,
Idaho, Sewer Revenue Bonds, Series October 1, 1972, Interest and
Bond Retirement Fund" (herein the "1972 Bond Fund" and merely
the "Bond Fund"), the following:
(a) Monthly, commencing on the fifteenth day of
the month immediately succeeding the delivery of any
1972 bonds, an amount in s~bstantially equal monthly in-
stallments necessary to pay the next maturing install-
ment of interest on the 1972 bonds, except to the ex-
tent any other moneys are available therefor, and
monthly thereafter, commencing on the fifteenth day
of the month preceeding each interest payment date
of the 1972 bonds, an amount in 6 substantially equal
monthly installments of interest on the outstanding
1972 bonds, except to the extent any other moneys are
available therefor so that by each March 15, and
September 15, a sum shall have been deposited which
shall be sufficient to pay each April 1 and October
1 interest payments, respectively; and
(b) Monthly, commencing on the fifteenth day of
the month next succeeding the delivery of any 1972 bonds,
or commencing on the fifteenth day of March, 1975, which
ever date is later, an amount in six (or less) substan-
tially equal monthly installments necessary to pay
the next maturing installment of principal of the 1972
bonds, except to the extent any other moneys are
available therefor, and monthly thereafter, commenc-
ing on the September 15 prior to each principal pay-
ment date of the 1972 bonds, an amount in 12 substan-
tially equal monthly installments necessary to pay the
next maturing installment of principal of the outstand-
ing 1972 bonds, except to the extent any other moneys
are available therefor, so that by each September 15
a sum shall have been deposited which shall be
sufficient to pay each October 1 principal payment.
If the City at any time shall call any 1972 bonds for prior
redemption, the City shall cause to be deposited in due season
in the Bond Fund additional moneys sufficient to pay on the due
date the 1972 bonds so called for prior redemption and then due,
except to the extent any other moneys are available therefor.
C. Reserve Funds. Deposits. Thirdly, and concurrently,
with the payments required by the next preceding paragraph (b)
from any moneys remaining in the Income Fund, i.e., from the net
income, commencing on the fifteenth day of September, 1974, at
least One Thousand Four Hundred Two and 50/100 Dollars ($1,402.50)
per month, or so much thereof as is available from the income fund
(but not to exceed Sixteen Thousand Eight Hundred Thirty and no/100
Dollars [$16,830.00]) in each year into a separate fund hereby cre-
ated and to be known as the "City of Chubbuck, Idaho, Sewer Revenue
-36-
Bonds, Series October 1, 1972, Reserve Fund" (herein the "1972
Reserve Fund" and merely the "Reserve Fund"), until a reserve ha~
been accumulated in an amount equal to not less than $67,320.00,
(herein the "1972 Minimum Reserve" and merely the "Minimum
Reserve"), and thereafter such amount or amounts, if any, shall
be deposited monthly from any moneys remaining in the Income
Fund necessary to maintain the Reserve Fund as a continuing
reserve in an amount not less than the Minimum Reserve. No
payment need be made into the 1972 Reserve Fund so long as the
moneys therein shall equal not less than the 1972 Minimum Reserve.
The moneys in the Reserve Fund shall be accumulated and main-
tained as a continuing reserve to be used, except as hereinafter
provided in paragraphs D and E of this section, only to prevent
deficiencies in the payment of the Bond Requirements of the 1972
bonds resulting from the failure to dePosit into the 1972 Bond
Fund sufficient funds to pay such Bond Requirements as the same
become due, except to the extent other moneys are available
therefor.
D. Deposits to Maturities. No payment need be made
into the 1972 Bond Fund, the 1972 Reserve Fund, or both, if the
amount in the Bond Fund and the amount in the Reserve Fund total
a sum at least equal to the entire amount of the outstanding
1972 bonds, as to all Bond Requirements to their respective due
dates, and both accrued and not accrued, in which case moneys in
those two accounts in an amount at least equal to such Bond Re-
quirements shall be used solely to pay such as the same accrue,
and any moneys in excess thereof in those two accounts and any
other moneys derived from the operation of the system may be used
in any lawful manner determined by the City Council.
E. Defraying Delinquencies. If, in any month, the
City shall, for any reason, fail to pay into the Bond Fund the
full amount above stipulated from the net income of the system,
then an amount shall be paid into the Bond Fund in such month
from the Reserve F~nd equal to the difference between that paid
from such net income and the full amount so stipulated. The
money so used shall be replaced in the Reserve Fund from the
first revenues thereafter received from the operation of the
system not required to be otherwise applied. If, in any month,
the City shall, for any reason, fail to pay into the Reserve
Fund the full amount above stipulated from the net income of
the system the difference between the amount paid and the amount
so stipulated shall in a like manner be paid therein from the
first revenues thereafter received from the operation of the
system not required to be otherwise applied. The moneys in the
-37-
Bond Fund and the Reserve Fund shall be used solely and only
for the purpose of paying the Bond Requirements of the 1972
bonds; any moneys at any time in excess of the Minimum Reserve
in the Reserve Fund may be withdrawn therefrom and deposited
into the Bond Fund; and any moneys in the Bond Fund and the Re-
serve Fund in excess of accrued and unaccrued Bond Requirements
to the respective due dates of the outstanding 1972 bonds may
be used as hereinabove provided in paragraph D of this section.
F. Paying Additional Bonds. Fourthly, any balance
remaining in the Income Fund after making the payments herein-
above provided, shall be used by the City for the payment of the
Bond Requirements of additional bonds or other obligations here-
after authorized to be issued and payable from the revenues of
the system, including reasonable reserves therefor, as the same
accrue; but the lien of such additional bonds or other obliga-
tions on the net income of the system and the pledge for the pay-
ment thereof shall be on a parity with, or subordinate to, the
lien and pledge of the bonds herein ~authorized, as hereinafter
provided.
G. Accumulation of Repair and Replacement Reserve
Account. Fifthly, and subject to the aforesaid provisions,
from any moneys remaining in the Income Fund there shall be
set aside and deposited annually $10,305.00 (or such portion of
any moneys remaining in the Income Fund and available annually)
within thirty days after the close of each fiscal year, commen-
cing on or before the end of the fiscal year during which the
required minimum reserve of Sixty-Seven Thousand Three Hundred ~
Twenty and no/100 Dollars ($67,3~20.00) has actually been accumu-
lated and is being maintained as the minimum reserve in the
reserve fund, but commencing no later than the fiscal year ending
December 31, 1979, in an Insured Bank into a separate account
hereby created and to be known as the "City of Chubbuck, Idaho, .
Sewer System Repair and Replacement Reserve Account" (herein the
"Repair and Replacement Reserve Account"), until the aggregate
amount of the deposits into the Repair and Replacement Reserve
Account shall equal at least $103,050.00 (regardless of any with-
drawals therefrom), such amount to be accumulated in the Repair
and Replacement Reserve Account, if moneys are available, within
the first fifteen (15) full fiscal years of operation of the system.
Moneys in the Repair and Replacement Account may be withdrawn at
any time to pay the costs of improvements, extensions, and better-
ments to the system, or in the event moneys are not sufficient in
the Bond Fund or the Reserve Fund, moneys in the Repair and Re-
placement Account shall be withdrawn to pay the requirements of
paragraphs B and C of this Section 34.
-38-
H. Use of Surplus Revenues. After the payments required
by paragraphs A through G of this section are made, the remaining
revenues derived from the operation and use of the system, if any,
shall be applied for any one, or all of a combination of the
following purposes:
(1) The purchase in the open market or the prior
redemption of any securities payable from net revenues
at the best reasonable price obtainable, but no
securities shall be so purchased or called for
prior redemption unless the amount in the 1972 Reserve
Fund at least equals the 1972 Minimum Reserve, nor
shall any securities be so purchased or called for
prior redemption unless the funds in any other reserve
funds established for any outstanding parity lien bonds
have also been accumulated and maintained in the amount
equal to at least the minimum reserve required for such
other reserve funds, as the case may be.
(2) The payment of the principal and interest, or
debt service requirements of any bonds or other obli-
gation payable from the revenues and having a lien thereon
subordinate inferior and junior to the lien of the 1972
bonds;
(3) The extension, betterment or other im-
provement of the system;
(4) The payment of deb. t service of general
obligation bonds, if any, incurred in the construc-
tion, other acquisition or improvement of the
system; or
(5) Any other lawful purpose authorized by
the Constitution and laws of the State, as the
City Council may direct including, without limita-
tion, Section 50-1033, of the Act, as from time to
time amended.
Section 35. Administration of Accounts. Each of the
funds and accounts designated herein shall be administered as
follows:
A. Places and Times of Deposits. The above funds
and book accounts shall be separately maintained from all other
funds and book accounts not pertaining to the system and shall
be deposited in one or more bank accounts in an Insured Bank or
Banks. Each such bank account shall be continuously secured to
the extent required by law and shall be irrevocable and not
withdrawable by anyone for any other purpose. Each monthly
-39 -
payment shall be made into the proper account on the fifteenth
day of the month, except when the fifteenth day shall be a Sunday
or legal holiday, then such payment shall be made on the next
preceding secular day. At least fifteen days prior to any inter-
est payment date, moneys sufficient to pay the Bond Requirements
then due shall be credited at the Paying Agent. Nothing herein
prevents the Council from establishing one bank account for any
of the funds and book accounts required hereby.
B. Investment of Money.s. Any moneys in any account
designated in Sections 27 through 34 hereof not needed to defray
any costs of the Project for a material period of time, nor to
defray operation and maintenance expenses of the system for the
current fiscal year nor to defray Bond Requirements of bonds
payable from the system revenues for the current and next succeed-
ing fiscal year, including, without limitation, the 1972 bonds,
as the Treasurer may from time to time determine, may be
invested or reinvested by the Treasurer in Federal Securities,
which shall be subject to redemption at face value by the holder
thereof at the option of such holder, or which shall mature
not later than 18 months from the date of such investment. The
obligations so purchased as an investment of moneys in any such
account shall be deemed at all times to be a part of the account,
and the interest accruing thereon and any other profit realized
therefrom shall be credited to the account, and any loss result-
ing from such investment shall be charged to the account. The
Treasurer shall present for redemption or sale on the prevailing
market any obligations so purchased as an investment of moneys in
the account whenever it shall be necessary to do so in order to
provide money to meet any payment or transfer from such account.
The value of any investments of moneys or funds in the
1972 Reserve Fund or in the Repair and Replacement Reserve Account
shall be determined and valued in terms of current market value
as of June 30 and December 31 of each year.
Section 36. First Lien Bonds. The 1972 bonds, sub-
ject to the payment of all necessary and reasonable expenses of
the operation and maintenance of the system, constitute an irre-
vocable and first (but not necessarily an exclusively first) lien
upon the revenues derived from the operation of the system.
Section '37. Equality. of Bonds. All the 1972 bonds
and all the parity securities hereafter issued and payable from
system revenues, if any, from time to time outstanding shall not
be entitled to any priority one over the other in the applica-
tion of the revenues of the system, and such securities shall be
equally and ratably secured, without priority by reason of
-40-
number, date of the bonds, date of their sale, date of their
execution, or date of their delivery, by a lien on such revenues
in accordance with the provisions of the Act and this ordinance.
Section ~38. Additional Obligations. Additional bonds
and other obligations may be issued, as follows:
A. Limitations upon Issuance of Parity Obligations.
Nothing herein prevents the issuance by the City of additional
bonds or other obligations payable from any net revenues
derived from the operation of the system and constituting a
lien upon such revenues on a parity with, but not prior or
superior to, the lien of the 1972 bonds, nor to prevent the
issuance of bonds or other obligations refunding all or a part
Of the 1972 bonds, subject to the provisions of Section 39
hereof. Before any such additional parity bonds or other parity
obligations are authorized or actually issued, other than refund-
ing bonds or other refunding obligations (unless any lien on any
revenues of the system of the bonds refunded is subordinate to
the lien Of the 1972 bonds and the lien on revenues of the system
of the refunding bonds is on a parity with the lien thereon of
the 1972 bonds) it must be determined that:
(1) The City is not, and has not been in default
as to any payments required to be made in Section 34
hereof during the fiscal year immediately preceding
the issuance of such additional bonds, or if none of
the 1972 bonds have been outstanding for a full fiscal
year, then for the longest period of time the 1972 bonds
have been outstanding; and
(2) The gross revenues derived from the operation
of the system for the fiscal year next preceding the date
of the issuance of such additional parity bonds or other
parity obligations shall have been sufficient to pay the
operation and maintenance expenses (current expenses) for
such fiscal year, and, in addition, sufficient to pay
(and have been equal to) an amount representing 140% of
the combined average annual principal and interest require-
ments to be paid in such fiscal year, of the outstanding
1972 bonds and any outstanding parity lien revenue bonds
and any other outstanding parity lien obligations of
the City payable from the revenues of the system (exclud-
ing any reserves therefor), except as hereinafter other-
wise expressly provided therefor; and
(3) The estimated net revenues of the facility
or facilities to be constructed or acquired with the
proceeds of such additional parity lien bonds when
-41-
added to the estimated future net revenues of the then
existing system shall be sufficient to pay and be equal
to at least an amount representing 140% of the combined
average annual principal and interest requirements
to be paid in each year on the outstanding 1972 bonds
and any other outstanding parity lien bonds and any
other outstanding parity lien obligations of the City
payable from the revenues of the system and the average
annual principal and interest requirements to be paid
in each fiscal year for the parity lien bonds or other
parity lien obligations proposed to be issued (exclud-
ing any reserves therefor); and
(4) For purposes of the tests set forth above, if
there has been adopted a schedule of rate increases
during the twel've months immediately prior to the
issuance of the proposed bonds, and if any revenues
colleCted pur. suant to such schedule are not part
of the revenues of the fiscal year used for the test
hereinabove set forth, there may be added to the actual
revenues for said fiscal year an estimated sum equal
to the estimated increase in revenues which would have
been realized during said fiscal year had such sate
increase governed the revenues received during said
entire fiscal year. Such estimates under paragraphs (3)
and (4) of this section shall be made in writing by an
Independent Consulting Engineer acceptable to and approved
by the City Council, and if used in connection with the
Independent Accountant's opinion hereinafter provided
for, such estimate shall be conclusive in determining
the right of the.City to authorize, issue, sell and
deliver said additional bonds or other additional ob-
ligations on a parity with the bonds herein authorized.
B. Certification of Revenues. A written opinion
by an Independent Accountant (including the estimate of the
Consulting Engineer) that such annual revenues when adjusted
as hereinabove provided are sufficient to pay such amounts,
shall be conclusively presumed to be accurate in determining
the right of the City to authorize, issue, sell and deliver such
additional bonds or other additional obligations on a parity with
the 1972 bonds; provided, however, that the written opinion and
the estimates are formally approved by the Mayor and approved
by a resolution or ordinance of the governing body.
-42-
C. Consideration of Additional Expenses. In any
determination of whether additional parity bonds or other addi-
tional parity obligations may be issued as aforesaid, con-
sideration shall be given to any probable increase (but not
reduction) in operation and maintenance expenses that will
result from the expenditure of the funds proposed to be derived
from the issuance and sale of such bonds or other obligations.
D. Sub'ordinate Obligations. Nothing herein, except
as herein otherwise specifically stated, prevents the City
from issuing bonds or other obligations payable from the reve-
nues of the system and having a lien thereon subordinate, in-
ferior and junior to the lien of the 1972 bonds.
E. SuPerior Obli~at,ions. Nothing herein permits
the City to issue bonds or other obligations payable from the
revenues of the system and having a lien thereon prior and
superior to the 1972 bonds.
F. Payment Dates. Any additional parity or subordinate
lien bonds or other parity or subordinate lien obligations issued
in compliance with the terms hereof shall bear interest payable
semiannually on the first days of April and October in each
year, except that the first installment of interest on any bond
may represent interest accruing for any period not in excess
of one year, and such obligations shall mature on the first
day of October in the years designated by the City Council
during the term of such bonds or other obligations.
G. A. dditional Requirements for Parity Bonds. The
ordinance or other instrument authorizing any additional parity
lien bonds, or other parity obligations issued in compliance with
the terms hereof, shall in addition require semiannual accumula-
tion of deposits into any bond fund or bond fund account estab-
lished for the payment of such parity lien bonds or other parity
obligations on the same basis and in the same manner as such
deposits are required for the 1972 bonds and shall in addition
require the establishment of a reserve fund for the payment of
such additional parity lien bonds or other parity obligations in
a sum at least equal to not less than the average annual princi-
pal and interest requirements on such parity lien bonds or other
parity obligations and, in addition, shall require an amount to
be deposited annually into a Repair and Replacement Reserve Fund
in an amount at least equal to one-half of one percent of the
estimated cost of the facilities to be added to the system and
will require such amount to be deposited annually until the ag-
gregate amounts of the deposit into such fund shall have been
accumulated and shall thereafter be maintained in an amount
-43-
equal to five percent (5%) of the estimated cost of the facili-
ties to be added to the system.
Section 39.1 Refunding Bonds. The provisions of Section
38 hereof, other than paragraphs F and G thereof, are subject to
the following exceptions:
A. Privilege of Issuance. At any time after the
bonds heretofore, herein or hereafter authorized, or any part
thereof, shall have been issued and remain outstanding, if the
City Council shall find it desirable to refund any outstanding
bonds or other outstanding obligations payable from any revenues
of the system, such bonds or other obligations, or any part
thereof, may be refunded (but only with the consent of the
holder or holders thereof, unless the bonds or other obligations,
at the time of their required surrender for payment, shall then
mature, or shall then be callable for prior redemption at the
City's option and shall have then been properly called), re-
gardless of whether the priority of the lien for the payment of
the refunding obligations on the revenues of the system is changed
(except as provided in paragraphs E and F of Section 38 hereof
and in paragraphs B and C of this section).
B. Limitations u~on Issuance. No refunding bonds or
other refunding obligations payable from any revenues of the
system shall be issued on a parity with the 1972 bonds:
(1) Unless the lien on any revenues of the system
of the outstanding obligations so refunded is on a
parity with the lien thereon of the 1972 bonds, or
(2) Unless the refunding bonds or other refund-
ing obligations are issued in compliance with paragraphs
A and B of Section 38 hereof.
C. Refunding Part of an Issue. The refunding bonds
or other refunding obligations so issued shall enjoy complete
equality of lien with the portion of any bonds or other obli-
gations of the same issue which is not refunded, if there are
any; and the holder ~or holders of such refunding bonds or such
other refunding obligations shall be subrogated to all of the
rights and privileges enjoyed by the holder or holders of the
bonds or other obligations of the same issue refunded thereby.
D. Other Limitations u~on Issuance. Any refunding
bonds or other refunding obligations payable from any revenues
of the system 'shall be issued with such details as the City
Council may by ordinance provide, subject to the inclusion of
any such rights and privileges designated in paragraph C of this
section, and subject to the provisions of paragraphs E and F,
Section 38 hereof, but without any impairment of any contractual
obligations imposed upon the City by any proceedings authorizing
-44-
the issuance of any unrefunded portion of such outstanding obli-
gations of any one or more issues (including, without limita-
tion, the issue herein authorized). If only a part of the out-
standing bonds and any other outstanding obligations of any issue
payable from the revenues of the system is refunded, then such
obligations may not be refunded without the consent of the holder
or holders of the unrefunded portion of such issue:
(1) Unless the refunding bonds or other refund-
ing obligations do not increase any aggregate annual
principal and interest requirements evidenced by
such refunding obligations and by the outstanding
obligations not refunded on and prior to the last
maturity date of such unrefunded obligations, or
(2) Unless the lien on revenues of the system
for the payment of the refunding obligations is sub-
ordinate to each such lien for the payment of any ob-
ligations not refunded.
E. Co'n~sideratio'n ~f'or Issuance. The refunding bonds
or other obligations shall either be sold for cash at not less
than the par value and accrued interest, and the proceeds thereDf
shall be used to pay the bonds refunded, or if so permitted by
law and then only with the consent of the holder or holders of
the bonds or other obligations refunded, the refunding bonds or
other obligations shall be delivered dollar for dollar in ex-
change for the bonds 'or other obligations refunded.
Section 40. P?ior Charge .~pon Lo..wer Rates. If it
should be legally determined that any legislative or other body,
commission or authority has power lawfully to prescribe a lower
schedule of rates than that contemplated by this ordinance or other
instruments and if such lower rate shall be prescribed, then the
payment of the Bond Requirements of the 1972 bonds shall consti-
tute a first and prior charge on the revenues received from the
system, together with the bonds and other obligations the lien
or liens of which is or are on a parity on such revenues with
the lien thereon of the 1.972 bonds, anything herein to the con-
trary notwithstanding.
Section 41. Com~ulsor~ Sewer Connections. The city
Council has determined, and does hereby determine, that it is for
the best interest of the City and the inhabitants thereof for
health and sanitary purposes that all residential or inhabited
property be connected to the sewer facilitieS of the system; and
the City Council orders that the owners of all residential or
inhabited property within .the City having any boundary of such
property within 200 feet of a sewer collection service line shall
-45-
connect such property to such line without expense to the City
within 60 days from the date of notice that such line is avail-
able or within 60 days from the date such a line is extended to
such a distance of a boundary line of the tract or parcel of
land, as stated hereinabove in this section and as provided in
Section 3 of Ordinance No. 128 duly adopted by the Mayor and
Council of the City of Chubbuck, Idaho, on the llth day of
December, 1973. The City shall enforce and compel such connec-
tions in the case of a failure so to connect within the time
herein prescribed by suit, action, or special proceedings in
equity or at law; and the City may prescribe rules and regula-
tions to govern, regulate and enforce such connections, includ-
ing, without limitation, the fixing of penalties for the failure
so to connect, and the entering into agreements with any other
public corporation or political subdivision of the State, or
any agency or instrumentality thereof, e.g. the County or its
health department, if any, necessary or desirable to effect the
provisions hereof.
Section 42. Protective Covenants. The City hereby
covenants and agrees with each and every holder of the 1972
bonds:
A. Payment of Bonds. The City will promptly pay
the Bond Requirements of each 1972 bond at the place, on the
dates and in the manner specified herein and in the bonds and
in the coupons thereto pertaining according to the true intent
and meaning hereof. Such Bond Requirements are payable solely
from the net income to be derived from the operation of and the
resultant rates and charges for the use of, and the products and
service rendered by, the system; and nothing in the bonds or
coupons or in this ordinance obligates the City to redeem any
of the bonds, as to any Bond Requirements, from, and the holder
or holders thereof may not look to, any general or other fund
except the income which is so pledged under the provisions of
this ~ordinance o
B. ' Use~ Charges. While the 1972 bonds or any of them
remain outstanding and ~npaid, the rates for all services ren-
dered by the system to the City and to its inhabitants and to
all consumers within or without the boundaries of the City,
shall be reasonable and just, taking into account and consider-
ation the cost and value of the system and the operation and
maintenance expenses of the system, and the proper and necessary
allowances for the depreciation thereof and the amounts necessary
for the retirement of all bonds and other securities payable from
the revenues of the system, as to all Bond Requirements, and
reserves therefor; and there shall be charged against all purchasers
-46~
of service, including the City, such rates and amounts as shall
be adequate to meet the requirements of this and the preceding
sections hereof, and which shall be sufficient to produce
revenues or earnings annually to pay the operation and maintenance
expenses, and to produce net revenues in each year equal to at least
140% of the combined average annual principal and interest require-
ments on all outstanding 1972 bonds and on any other bonds or obli-
gations payable from the revenues of the system, the lien on the
revenues of which is on a parity with the lien of the revenues of
the system of the 1972 bonds, and including the reserves therefor,
all of which revenues, including those received from the
City, shall be subject to distribution to the payment of the op-
eration and maintenance expenses of the system and the payment
of the Bond Requirements of all securities payable from the reve-
nues of the system, including reasonable reserves therefor. No
free service, facilities nor commodities shall be furnished by
the system. Should the City elect to use for municipal purposes
any of the facilities of the system, or in any other manner use
the system, or any part thereof, any use of the system or of the
services rendered thereby by the City, or any department, board
or agency thereof, shall be paid for from the City's general
fund or other available revenues at the reasonable value of the
use so made, or service, facility or commodity so rendered; and
all the income so derived from the City shall be deemed to be
income derived from the operation of the system, to be used
and accounted for in the same manner as any other income de-
rived from the operation of the system.
C. Levy of Charges. The City shall forthwith and
in any event prior to the delivery of any of the 1972 bonds, fix,
establish and levy the rates and charges which are required by
paragraph B of this section, if such action in addition to Or-
dinance No. 129 is necessary therefor. No reduction in any
rate schedule for the system may be made:
(1) Unless the City has fully complied with
the provisions of Section 34 hereof for at least the
full two fiscal years immediately preceding such
reduction of the rate schedule; and
(2) Unless the audits required by an Indepen-
dent Accountant by paragraph G of this section for the
full two fiscal years immediately preceding such re-
duction discloses that the estimated revenues resulting
from the proposed rate schedule, after its proposed
reduction, shall be sufficient to pay an amount at
least equal to the annual operation and maintenance
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expenses for such period, and, in addition, estimated
net revenues shall be equal to at least 140% of the
combined average annual principal and interest require-
ments on the 1972 bonds and any other parity lien bonds
or any other parity lien obligations payable from the
revenues of the system, including reasonable reserves
therefor.
D. Efficient O~eration. The City shall operate the
system so long as any of the 1972 bonds are outstanding, to
maintain the system in efficient operating condition and to
make such betterments, extensions, other improvements, or re-
pairs thereto, or any combination thereof, as may be necessary
or advisable to insure its economical and efficient operation
at all times and to an extent sufficient to supply public or
private demands for service within the City and the territory
adjacen% thereto.
E. Records. So long as any of the bonds remain
outstanding, proper books of record and account shall be kept
by the City, separate and apart from all other records and
accounts, showing complete and correct entries of all transac-
tions relating to the system. Such books shall include (but
not necessarily be limited to) monthly records showing:
(1) The number of sewer customers,
(2) The revenues received from sewer
charges by classes of customers, and
(3) A detailed statement of the expenses of
the system.
Before each fiscal year the City Council shall cause an operat-
ing budget to be prepared therefor.
F. Inspection Rights. Any Purchaser, any holder of
any of the bonds, or any duly authorized agent or agents of
such a Purchaser or such a holder, shall have the right at all
reasonable times to inspect all records, accounts and data
relating thereto and to inspect the system and all properties
comprising the system.
G. Audits, Budgets and Periodic Operating Statements.
The City agrees that within 90 days following the close of each
fiscal year the City shall furnish to the HUD, if it is a Pur-
chaser of any of the 1972 bonds, (i) an audit report made by an
Independent Public Accountant, (ii) an operating budget showing
the planned budget for the fiscal year, the actual income and
expenses for the fiscal year, and the estimated budget for the
current fiscal year, and (iii) a current financial statement
(unless included in the audit report). Each such audit report,
-48-
in addition to matters thought proper by the accountant, shall
include:
(1) An evaluation of the manner in which the City
has complied with the covenants of this ordinance and the Loan
Agreement with the government.
(2) Statement of Operating Income and Expense.
(3) Statement showing analysis of each fund includ-
ing deposits, withdrawals and beginning and ending balances.
(4) General Balance Sheet.
(5) A statement showing the schedule of rates charged
for each class of service as of the close of the fiscal yea~, the
gross revenues received and the number of connections.
(6) Schedule of insurance policies and fidelity bonds
in force showing with respect to each policy and bond the nature
and amount of risk covered, the expiration date and the name
of the insurer.
(7) Names and titles of principal officers.
(8) A statement of current assessed property valu-
ation, tax rates, levies and collections of the City.
(9) A general statement concerning any events or cir-
cumstances which possibly might affect the financial status of
the system.
(10) A statement for the fiscal year just closed,
of the income and expenditures of the system, including gross
revenues, the net revenues, the amount of any capital expen-
ditures and profit or loss;
(11) The accountant's comment regarding the City's
methods of operation and accounting practice;
(12) The number of any metered sewer connections,
and any unmetered sewer connections at the beginning and at the
end of the fiscal year;
(13) The' number of customers per class of customers,
if there are classes of customers and the revenues per class of
customers.
(14) The annual report shall include a statement of
the extent the City has complied with the covenant of paragraph
B of Section 42 of this ordinance which relates to the use
charges and maintaining annual net revenues of the system at
least equal to 140% of the combined average annual principal
and interest requirements on the 1972 bonds and on any other
parity lien bonds or parity lien obligations payable from the
revenues of the system.
All expenses incurred in the making of the audits and reports
required by this paragraph shall be regarded and paid as oper-
-49-
ation and maintenance expenses. The City shall furnish a copy
of each audit report to any holder of any 1972 bond at his re-
quest and without request to each purchaser thereof other than3 the
HUD, if any, and to the Paying Agent within 90 days following the
end of the fiscal year. Any holder shall have the right to dis-
cuss the contents with any individual making the audit.
H. Billing Procedure. All bills for sewer service or
facilities, furnished or serviced by or through the system shall
be rendered to customers on a regularly established day of each
and every month either monthly in advance or in the month next
succeeding the month in which the service was rendered and shall
be due within 20 days from the date rendered; and if such bills
are not paid within 90 days after the date when rendered, the rates
and charges due shall be collected in a lawful manner.
I. Use of Bond and Reserve Funds. The 1972 Bond Fund,
and the 1972 Reserve Fund shall be used solely and only, and
such accounts are hereby pledged, for the purpose of paying the
Bond Requirements of the 1972 bonds, except any moneys in the Bond
Fund and in the Reserve Fund as are in excess of the Bond Requi_~e-
ments of the bonds, both accrued and not accrued, to their respec-
tive due dates, as hereinabove provided.
J. Charges and Liens uponl Facilities. From the reve-
nues of the system the City shall pay all taxes and assessments
or other municipal or governmental charges, if any, lawfully
levied, assessed upon or in respect of the system, or any part
thereof, when the same shall become due, and the City shall
duly observe and comply with all valid requirements of any muni-
cipal or governmental authority relative to any part of the sys-
tem and shall not create or suffer to be created any lien or
charge upon the system or upon the revenues therefrom except as
permitted by this ordinance, or the City shall make adequate
provision to satisfy and discharge within 60 days after the
same shall accrue all lawful claims and demands for labor,
materials, supplies or other objects, which, if unpaid, might
by law become a lien upon the system or upon the revenues
therefrom; but nothing herein requires the City to pay or cause
to be discharged, or make provision for any such tax, assess-
ment, lien or charge before the time when payment thereof shall
be due or so long as the validity thereof shall be contested in
good faith by appropriate legal proceedings.
K. Insurance. The City in its operation of the system
shall carry fire and extended coverage insurance, workmen's com-
pensation insurance, public liability insurance, and all such
-50-
other insurance as is customarily maintained with respect to
facilities of like character against loss of or damage to the sys-
tem and against public and other liability at least to the extent
reasonably necessary to protect the interests of the City and of
each holder of a bond or any other security payable from the sys
tem revenues, except as herein otherwise provided. All buildings,
tanks, motors, pumps and other equipment shall be insured against
the usual hazards normally'covered by insurance. The Issuer shall
carry workmen's compensation insurance on any individuals that it
employs for the maintenance and operation of the system. Unless
public liability insurance is not authorized by State law as
interpreted by the City's attorney, such insurance shall be main-
tained in reasonable amounts, but in no event less than $100,000.00
for any one person and $300,~000.00 for any one occurrence or more
than one person against claims for bodily injury and death or
either, and not less than $10,000.00 for damage to any property
of others, suffered or alleged to have been suffered by others
arising from the City's operations, including, without limitation,
any use and occupancy of its grounds, structures and vehicles.
In the event of property loss or damage, insurance proceeds
(except any proceeds from a public liability policy) shall be used
first for the purpose of restoring or replacing the property
lost or damaged, any remainder shall be treated as net revenues,
and shall be subject to distribution in the manner provided
hereinabove, for net revenues derived from the operation of the
system.
L. Com~etin~ Facilities. As long as any of the 1972
bonds are outstanding, the City shall not grant any franchise
or license to a competing system, nor shall it permit, during
such period, any person to sell sewer service or facilities, or
any combination thereof, to any consumer, public or private, with-
in the City.
M. Alienation of ~stem. The City shall not sell,
lease, mortgage, pledge, or otherwise encumber, or in any man-
ner dispose of, or otherwise alienate, the system, or any part
thereof, including any and all extensions and additions that
may be made thereto, until all the outstanding 1972 bonds are
paid in full, as to all Bond Requirements, except that the City
may sell any portion of such property which shall have been
replaced by other property of at least equal value, or which
shall cease to be necessary for the efficient operation of the
system, but in no manner nor to such extent as might prejudice
the security for the payment of the 1972 bonds, and in the event
of any sale as aforesaid, the proceeds of such sale shall be dis-
tributed as net revenues of the system.
-51-
N. Extension of Interest Payments. In order to pre-
vent any accumulation of coupons or claims for interest after
maturity, the City shall not directly or indirectly, extend or
assent to the extension of the time for the payment of any coupon
or claim for interest on any of the 1972 bonds and the City shall
not directly or indirectly be a party to or approve any arrange-
ment for any such extension or for the purpose of keeping alive
any of such coupons; and if the time for payment of any such
coupons is extended, such coupon or installment or installments
of interest after such extension or arrangement shall not be
entitled in case of default hereunder to the benefit or security
of this ordinance except subject to the prior payment in full
of the Bond Requirements of the bonds the payment of interest on
which has not been extended.
O. Management of System. The City shall appoint a
manager of the system with suitable experience in the operation
of similar systems. In the event of default on the part of the
City in the payment of the Bond Requirements of the bonds promptly
as the same fall due, or in the keeping of any covenants herein
contained, and if such defaUlt shall continue for a period of
60 days, or if the net revenues of the system in any two consecu-
tive fiscal years should fail to equal at least the amount of
one hundred twenty per cent (120%) of the combined average
annual principal and interest requirements of the 1972 bonds
and the principal of and interest on any other revenue bonds
and other obligations (including all reserves therefor specified
in the authorizing proceedings, including, without limitation,
this ordinance) payable from such net revenues in each such fis-
cal year, the City shall retain a firm of competent management
engineers skilled in the operation of sewer systems to assist
the manager of the system so long as such default continues or
the net revenues are less than the amount hereinabove designated.
The manager shall have full control over the system and shall
operate the system for the City and shall enforce such reasonable
rates and charges as shall be sufficient to make the payments re-
quired by this ordinance, and shall in all things so operate the
system as to comply fully with all of the requirements and pro-
visions of this ordinance. The right of the holder or holders
of the 1972 bonds to require the appointment of such a manager
and their conditional right to require the retention of such
management engineers shall not be exclusive, and in the event
of default as herein outlined, such holder or holders shall have
the right to proceed in law or equity to require the performance
of the covenants herein contained in any action which to them
shall seem appropriate, as hereinafter provided in Sections 48,
49 and 50 hereof.
-52-
P. Fidelit~ Bonds. The Treasurer, being responsible
for receiving system revenues and maintaining the accounts of the
system, shall be bonded in an amount of at least $~-~!06606o, or
an amount at least equal to the total funds in his custody at
any one time. Each other official or other individual having
custody of any moneys derived from the operation of the system
or otherwise pertaining thereto shall be bonded in at least such
amount. If the HUD. is a purchaser, each such fidelity bond shall
show as co-obligee the United States of America, Department of
Housing and Urban Development. The cost of each such bond shall
be considered one of the operation and maintenance expenses of
the system.
Q. Performance of Duties. The City shall faithfully
and punctually perform all duties with respect to the system
required by the Constitution and laws of the State and the
ordinances and resolutions of the City, including, without~
limitation, the making and collecting of reasonable and suffi-
cient rates and charges for service rendered or furnished by
the system as hereinbefore provided, and the proper segregation
of the revenues of the system and their application to the res-
pective accounts.
R. Other Liens. Other than as provided by this
ordinance, there are not liens or encumbrances of any nature,
whatsoever on or against the system or the revenues derived
or to be derived from the operation of the same.
S. City's Existence. The City of Chubbuck shall
continue to maintain its corporate identity and existence so
long as any of the 1972 bonds remain outstanding, unless another
political subdivision by operation of law succeeds to the powers,
privileges, rights, liabilities, disabilities, duties and immun-
ities of the City and is obligated by law to operate and main-
tain the system and to fix and collect the system revenues as
herein provided, in place of the City, without adversely and
materially affecting at any time~ the privileges and rights of
any holder of any outstanding bond.
T. Performance Bonds. The City shall require each
person with whom it may contract for labor or materials of
construction to furnish a performance bond in the full amount
required by the Loan Agreement, or in lieu thereof to deposit
with the Treasurer, to insure completion and performance,
marketable securities having a market value equal to the amount
of such contract, eligible as security for the deposit of trust
funds under the regulations of the BOard of Governors of the
Federal Reserve System. In the event of default under such
contract and upon being notified in writing of such default by
-53-
the Mayor, the Treasurer shall sell any securities so deposited
at the prevailing market to the extent requested by the Mayor
and shall apply the proceeds to the removal of such default as
directed by the Mayor. Any such contract for labor or materials
of construction shall provide that payment thereunder shall not
be made by the City in excess of 90% of the current estimates un-
til the completion of the Project and its acceptance by the City.
U. Completion of Project. The City, with the proceeds
derived from the sale of the 1972 bonds, shall proceed to cause
the Project to be completed without delay and with due diligence
to the best of the City's ability, as herein provided. A contract
or contracts for the construction and other acquisition of the Pro-
ject shall be let by the City as soon as practicable after the
delivery of any 1972 bonds, except to the extent theretofore let.
Each such contract shall meet the reasonable requirements of
the HUD, if it is a purchaser, as are not inconsistent with State
law.
V. Arbitrage Bond Investments Prohibited. The City
hereby further covenants for the benefit of each holder of the
1972 bonds that:
(1) Sums credited to the various accounts per-
taining to the system, the Project or the 1972 bonds
shall not be invested in such a manner as to result in
the loss of eXemption from federal income taxation of
interest on any such bond or on any bond subsequently
issued by the City;
(2) The City shall make no use of the proceeds
of the 1972 bonds which will cause them to be "arbitrage
bonds" under the U. S. Internal Revenue Code of 1954,
as amended (herein the "Tax Code") and the applicable
regulations thereunder promulgated by the Internal Reve-
nue Service; and the City and its officers, employees
and other agents shall take appropriate action so that
on the basis of the facts, estimates and circum-
stances in existence on the date of issue of the 1972
bonds it is reasonably expected that the proceeds of
the 1972 bonds will be used in a manner that will not
cause the bonds to be taxable "arbitrage bonds" under
Section 103(d), Tax Code, and the applicable income tax
regulations thereunder;
(3) Such sums constituting in the aggregage a
major portion or more of the proceeds of the 1972
bonds shall not be invested directly~or indirectly
in taxable obligations so as to produce an adjusted yield
(including permissible adjustments for any premiums,
-54-
discounts and costs ), i.e., an adjusted effective inter-
est rate, which is materially higher than the adjusted
yield (adjusted effective interest rate) of the bonds
and which results in the bonds of such issue or of any
subsequent issue constituting taxable "arbitrage bonds"
within the meaning of subsection (d), Section 103, Tax
Code, as amended by Section 601(a), Tax Reform Act of
1969 (83 Stat. 656), by any subsequent amendments, and
by the applicable income tax regulations thereunder,
except for any such investments permitted by the "special
rules" pertaining to "temporary periods" and to "reason-
ably required reserve or replacement funds" and except
as may be otherwise permitted by law;
(4) The covenant in this paragraph imposes an
obligation on the City to comply with the requirements
of subsection (d), Section 103, Tax Code, and such in-
come tax regulations; but
(5) Such sums may be otherwise invested if and
when such act and regulations permit the investment to
be made in the manner made without causing the bonds
of such issue or of any subsequent issue to become
taxable "arbitrage bonds".
W. Bonds Are Not IDBs. The City hereby also covenants
for the benefit of each holder of any 1972 bonds that they are
not obligations:
(1) Which are issued as part of an issue all or
a major portion of the proceeds of which are to be used
directly or indirectly in any trade or business carried
on by any person who is not an exempt person, and
(2) The payment of the principal or interest on
which (under the terms of such obligations or any under-
lying arrangement) is, in whole or in major part (i)
secured by any interest in property used or to be
used in a trade or business or in payments in respect
of such property, or (ii) to be derived from payments
in respect of property, or borrowed money, used or to
be used in a trade or business,
as such provisions are used in subsection ic), Section 103,
Tax Code, as amended by Section 107, Revenue and EXpenditure
Control Act of 1968, by Section 401, Renegotiation Amendments
Act of 1968, by Section 315, Revenue Act of 1971, by any subse-
quent amendments, and by the applicable income tax regulations
thereunder. Thus the bonds are not "industrial development
bonds" within the meaning of Section 103 (c), Tax Code, and the
applicable income tax regulations thereunder.
-55-
X. Immunities of Purchaser. Each purchaser and any
associate thereof are under no obligation to any holder of the
bonds for any action that they may or may not take or in res-
pect of anything that they may or may not do by reason of any
information contained in any reports or other documents received
by them under the provisions of this ordinance. The immunities
and exemptions from liability of each purchaser and any associate
thereof hereunder extend to their partners, directors, successors,
employees and agents.
Y. Prior Contracts. If any provision herein is in-
consistent with any provision in any existing contract pertain-
ing to the City so as to affect prejudicially and materially
the rights and privileges thereunder so long as such contract
shall remain viable and in effect such provision therein shall
control such inconsistent provision herein and the latter and
later provision shall be subject and subordinate to such pro-
vision in such existing contract.
Z. Police Power. Nothing herein prohibits or other-
wise limits or inhibits the exercise by the government, the State,
any agency thereof or any political subdivision thereof, includ-
ing, without limitation, the City of Chubbuck, of the police
power, i.e., essential governmental powers for the public wel-
fare. The provisions hereof are subject to any proper exercise
hereafter of the police power thereby. The City cannot contract
away the police power thereof nor limit or inhibit by contract
the proper exercise of the police power thereby, and this or-
dinance does not purport to do so.
Section 43. Defeasance. When all Bond Requirements
of the 1972 bonds have been duly paid, the pledge and lien and
all obligations hereunder shall thereby be discharged and the
bonds shall no longer be deemed to be outstanding within the
meaning of this ordinance. There shall be deemed to be such
full payment when the City has placed in escrow or in trust
with an Insured Bank located within or without the State and
exercising trust powers, an amount sufficient (including the
known minimum yield available for such purpose from Federal
Securities in which such amount wholly or in part may be ini-
tially invested) to meet all Bond Requirementsof the 1972
bonds, as the same become due to the final maturities of the
bonds or upon any redemption date as of which the City shall
have exercised or shall have obligated itself to exercise its
prior redemption option by a call of bonds for payment then.
The Federal Securities shall become due prior to the respective
times on which the proceeds thereof shall be needed, in accor-
-56 -
dance with a schedule established and agreed upon between the
City and such bank at the time of the creation of the escrow
or trust or the Federal Securities shall be subject to redemp-
tion at the option of the holders thereof to assure such avail-
ability as so needed to meet such schedule.
Section 44. ~Delegated Powers. The officers of the
City be, and they hereby are, authorized and directed to take
all action necessary or appropriate to effectuate the provisions
of this ordinance, including, without limitation:
A. Printing Bonds. The printing of the bonds, in-
cluding, without limitation, the printing on each bond of a
certified true copy of bond counsel's approving opinion;
B. Final Certificates. The execution of such certi-
ficates as may be reasonably required by the purchaser, relating,
inter alia, to:
(1) The signing of the bonds,
(2) The tenure and identity of the officials of
the City Council and of the City.
(3) The delivery of the bonds and the receipt of
the bond purchase price,
(4) The presence or absence of factors which may
effect the exemption of interest on the bonds from
Federal income taxation, and
(5) If it is in accordance with fact, the absence
of litigation, pending or threatened, affecting the
validity thereof.
C. Information. The assembly and dissemination of
financial and other information concerning the City and the
bonds;
D. Official Statement. The preparation of a bond
offering brochure or official statement for use for prospective
buyers of the bonds, including, without limitation, such use
by the purchaser and its associates, if any, and
E. Bond Sale. The sale and issuance of the bonds
pursuant to the provisions of this ordinance, and to the
10-1-72 Public Sale Resolution and to any other ordinance
supplemental thereto.
Section 45. Statute of Limitations. No action or
suit based upon any bond, coupon or other obligation of the
city shall be commenced after it is barred by any statute of
limitations pertaining thereto. Any trust or fiduciary re-
lationship between the City and the holder of any bond or
coupon or other obligee regarding any such obligation shall
-57-
be conclusively presumed to have been repudiated on the maturity
date or other due date thereof unless the bond or coupon is pre-
sented for payment or demand for payment of any such other obli-
gation is otherwise made before the expiration of the applicable
limitation period. Any moneys from whatever source derived
remaining in any account reserved, pledged or otherwise held
for the payment of any such obligation, action or suit for the
collection of which has been barred, shall revert to the Income
Fund, unless the City Council shall otherwise provide by
instrument of the City. Nothing herein prevents the payment
of any such obligation after any action or suit for its collec-
tion has been barred if the City Council deems it in the best
interests of the public so to do and orders such payment to be
made.
Section 46. Ratification. All action heretofore taken
(not inconsistent with the provisions of this ordinance) by
the Council and the officers of the City, directed toward:
A. Pro~ect. The Project.
B. Bonds. The issuance of the City's sewer reve-
nue bonds therefor, and
C. Election. The calling and holding of the elec-
tion for the authorization of such bonds,
be, and the same hereby is, ratified, approved and confirmed,
including, without limitation, the giving of notice of the elec-
tion for the submission of the Bond Question.
Section 47. Evidence of Bondholders.
A. Procedure. Any request, consent or other instru-
ment which this ordinance may require or may permit to be signed
and to be executed by the holder of any bonds or other securities
may be in one or more instruments of similar tenor and shall be
signed or shall be executed by each such holder in person or by
his attorney appointed in writing. Proof of the execution of
any such instrument or of an instrument appointing any such
attorney, or the holding by any person of the securities or
coupons pertaining thereto, shall be sufficient for any purpose
of this ordinance (except as otherwise herein expressly pro-
vided) if made in the following manner;
(1) The fact and the date of the execution by any
holder of any bonds or other securities or his attorney
of such instrument may be provided by the certificate,
which need not be acknowledged or verified, or an offi-
cer of a bank or trust company satisfactory to the Clerk
or to any notary public or other officer authorized to
-58-
take acknowledgments of deeds to be recorded in the state
in which he purports to act, that the individual sign-
ing such request or other instrument acknowledged to
him the execution thereof, or by an affidavit of a wit-
ness of such execution, duly sworn to before such notary
public or other officer; the authority of the individual
or individuals executing any such instrument on behalf
of a corporate holder of any securities may be established
without further proof if such instrument is signed by
an individual purporting to be the president or vice
president of such corporation with a corporate seal af-
fixed and attested by an individual purporting to be
its secretary or an assistant secretary; and the author-
ity of any ~person or persons executing any such instru-
ment in any fiduciary or representative capacity may
be established without further proof if such instrument is
signed by a Person or Persons purporting to act in such
fiduciary or representative capacity; and
(2) The amount of bonds or other securities trans-
ferable by delivery held by any Person executing any instru-
ment as a holder of securities, and the numbers, date and
other identification thereof, together with the date of
his holding the securities, may be provied by a certificate
which need not be acknowledged or verified, in form satis-
factory to the Clerk, executed by a member of.a financial
firm or by an officer of a bank or trust company, insurance
company or financial corporation or other depositary satis-
factory to the Clerk, or by any notary public or other
officer authorized to take acknowledgments of deeds to be
recorded in which he purports to act, showing at the date
therein mentiOned that such Person exhibited to such mem-
ber, officer, notary public or other officer so authorized
to take acknowledgments of deeds or had on deposit with
such depositary the securities described in such certifi-
cate; and such certificate may be given by a member of a
financial firm or by an officer of any bank, trust company,
insurance company or financial Corporation or depositary
satisfactory to the Clerk or by a notary public or other
officer so authorized to take acknowledgments of deeds with
respect to securities owned by such holder, if acceptable
to the Clerk;.
but the Clerk may nevertheless in his discretion require further
or other proof in cases where he deems the same advisable.
Section 48. Events of Default. Each of the following
events is hereby declared an "event of default," that is to say:
-59-
A. Nonpayment of Principal. Payment of the princi-
pal of any of the 1972 bonds shall not be made when the same
shall become due and payable, either at maturity, or by proceed-
ings for prior redemption, or otherwise.
B. Nonpayment of Interest. Payment of any install-
ment of interest shall not be" made 30 days after the same becomes
due and payable.
C. Incapable to Perform. The City of Chubbuck shall
for any reason be rendered incapable of fulfilling its obliga-
tions hereunder.
D. Default of any Provision. The City shall make
default in the due and punctual performance of its covenants or
conditions, agreements and provisions contained in the bonds or
in this ordinance on its part to be performed, and if such
default shall continue for 60 days after written notice speci-
fying such default and requiring the same to be remedied shall
have been given to the City by the holders of 25% in principal
amount of the bonds then outstanding.
Section 49. Remedies for Defaults. Upon the happening
and continuance of any of the events of default as provided in
Section 48 hereof, then and in every case the holder cr holders
of not less than 25% in principal amount of the bonds then out-
standing, including but not limited to a trustee or trustees
therefor, may proceed against the City, its City Council, and
its agents, officers and employees to protect and enforce the
rights of any holder of bonds or coupons hereunder by mandamus
or other suit, action or special proceedings in equity or at
law, in any court of competent jurisdiction, either for the
appointment of a receiver or for the s~pecific performance of any
covenant or agreement, contained herein or in an award of execu-
tion of any power herein granted for the enforcement of any
power, legal or equitable remedy as such holder or holders may
deem most effectual to protect and enforce the rights aforesaid,
or thereby to enjoin any act or thing which may be unlawful or
in violation of any right of any bondholder, or to require the
City Council to act as if it were the trustee of an expressed
trust, or any con~ination of such remedies. All such proceed-
ings at law or in equity shall be instituted, had and maintained
for the equal benefit of all holders of the bonds and coupons
then outstanding. Any receiver appointed in any proceedings to
protect the rights of such holders hereunder, the consent to
any such appointment being h.ereby .expressly granted, may enter
and take possession of the system, operate and maintain the
-60-
same, prescribe rates, fees or charges and collect, receive, and
apply all revenues in the same manner as the City itself might
do. The failure of any such holder so to proceed shall not relieve
the City or any of its officers, agents or employees of any
liability for failure to perform any duty. Each right or privi-
lege of any such holder (or trustee thereof) is in addition and
cumulative to any other right or privilege and the exercise of
any right or privilege by or on behalf of any holder shall not
be deemed a waiver of any other right or privilege thereof.
Section 50. Duties upon Defaults. Upon the happen-
ing of any of the events of default as provided in Section 48
hereof, the City, in addition, shall do and perform all proper
acts on behalf of and for the holders of bonds and coupons to
protect and preserve the security created for the payment of
their bonds and coupons and to insure the payment of the Bond
Requirements of the bonds promptly as the same become due. All
proceeds derived therefrom so long as any of the 1972 bonds,
as to any Bond Requirements, are outstanding and unpaid, shall
be paid into the Bond Fund, and in the event of obligations here-
tofore and hereafter issued and outstanding during such period
of time on a parity with the 1972 bonds, into such bond funds
for all "parity" obligations on an equitable and prorated basis,
and used for the purposes therein provided. If the City fails
or refuses to proceed as in this section provided, the holder
or holders of not less than 25% in principal amount of the
bonds then outstanding, after demand in writing, may proceed
to protect and enforce the rights of the bondholders as herein-
above provided.
Section 51. Amendment of Ordinance. This ordinance
may be amended or supplemented as follows:
A. Limitations upon Amendments. This ordinance may
be amended or supplemented by ordinances adopted by the
City Council in accordance with the laws of the State, without
receipt by the City of any additional consideration, but with
the written consent of the holders of 66% of the 1972 bonds
outstanding at the time of the adoption of such amendatory
or supplemental instrument (not including in any case any bonds
which may then be held or owned for the account of the City);
but no such Ordinance shall have the effect of permitting
(1) An extension of the maturity of any bond
authorized by this ordinance; or
(2) A reduction in the principal amount of any
bond, or the rate of interest thereon, without consent
of the holder of the bond; or
(3) The creation of a lien upon or a pledge of
-61-
revenues ranking prior to the lien or pledge created
by this ordinance; or
(4) A reduction of the principal amount of bonds
or percentages required for the consent to such amenda-
tory or supplemental ordinance; or
(5) The establishment of priorities as between
bonds issued and outstanding under the provisions of
this ordinance; or
(6) The material and prejudicial modification
of or otherwise affecting the rights of the holders of
less than all of the bonds then outstanding.
B. Notice of Amendment. Whenever the City shall
propose to amend or modify this ordinance under the provisions
of this section, it shall cause notice of the proposed amend-
ment to be p~blished one time in a financial newspaper or jour-
nal published in Boise, Idaho. Such notice shall briefly set
forth the nature of the proposed amendment and shall state that
a copy of the proposed amendatory ordinance is on file in the
office of the Clerk for public inspection.
C. Time for Amendment. Whenever at any time within
one year from the date of the publication of such notice there
shall be filed in the office of the Clerk an instrument or
instruments executed by the holders of at least 66% in aggre-
gate principal amount of the bonds then outstanding as in this
section defined, which ordinance or ordinances shall refer to
the proposed amendatory ordinance described in such notice and
shall specifically consent to and approve the adoption thereof,
thereupon, but not otherwise, the City Council may adopt such
amendatory ordinance and such ordinance shall become effective.
D. Binding ~Cons'ent to Amendment. If the holders of
at least 66% in aggregate principal amount of the bonds outstand-
ing as in this section defined, at the time of the adoption of
such amendatory ordinance, or the predecessors in title of
such holders, shall have consented to and approved the adoption
thereof as herein provided, no holder of any bond whether or not
such holder shall have consented to or shall have revoked any
consent as in this section provided, shall have any right or
interest to object to the adoption of such amendatory ordin-
ance or to object to any of the terms or provisions therein
contained or to the operation thereof or to enjoin or restrain
the City from taking any action pursuant to the provisions thereof.
E. Time Consent Binding. Any consent given by the
holder of a bond pursuant to the provisions of this section shall
be irrevocable for a period of 6 months from the date of the
publication of such notice by the holder who gave such consent
-62-
or by a successor in title by filing notice of such revocation
with the Clerk but such revocation shall not be effective if
the holders of 66% in aggregate principal amount of the bonds out-
standing as in this section defined have, prior to the attempted
revocation, consented to and approved the amendatory ordinance
referred to in such revocation.
F. Unanimous Consent. Notwithstanding anything in
the foregoing provisions of this section, the terms and the
provisions of this ordinance or of any ordinance amendatory
thereof or supplemental thereto and the rights and the obliga-
tions of the City and of the holders of the bonds and coupons
thereunder may be modified or amended in any respect upon the
adoption by the City and upon the filing with the Clerk of an
instrument to that effect and with the consent of the holders
of all the then outstanding bonds, such consent to be given as
provided in section 47 hereof; and no notice to holders of bonds
by publication shall be required as provided in paragraph B of
this section, nor shall the time of consent be limited except
as may be provided in such consent.
Section 52. S~cial Obligations. All of the 1972
bonds, as to all Bond Requirements, shall be payable and col-
lectible (except as herein otherwise provided) solely out of the
net revenues, which revenues are so pledged; the holder or
holders thereof may not look to any general or other fund for
the payment of such Bond Requirements, except the hereinabove
designated special funds pledged therefor; the bonds shall not
constitute an indebtedness or a debt within the meaning of any
constitutional or statutory provision or limitation; and the
bonds shall not be considered or held to be general obligations
of the City but shall constitute its special obligations.
The City does not pledge its full faith and credit for the
payment of the bonds.
Section 53. Character of Agreement and Limitations
upon Security. None of the covenants, agreements, representa-
tions and warranties contained herein or in the 1972 bonds, in
the absence of any breach thereof, shall ever impose or shall
be construed as imposing any liability, obligation or charge
against the City (except the special funds pledged therefor)
or its general credit, payable out of its general fund or out
of any funds derived from taxation. The payment of the bonds
is not secured by an encumbrance, mortgage or other pledge of
property of the City, except the net pledged revenues and any
other moneys pledged for the payment of the bonds. No property
of the City, subject to such exception, shall be liable to be
-63-
forfeited or taken in payment of the bonds.
Section 54. Ordinance Irrepealable. After any of
the 1972 bonds are issued, this ordinance shall be and remain
irrepealable until the bonds, as to all Bond Requirements,
shall be fully paid, cancelled and discharged, as herein pro-
vided.
Section SS. Repealer Clause. Ail bylaws, orders,
resolutions and ordinances, or parts thereof, inconsistent
herewith are hereby repealed to the extent only of such incon-
sistency. This repealer shall not be construed to revive any
bylaw, order, resolution or ordinance, or part thereof, here-
tofore repealed.
Section S6. Severability Clause. If any section,
paragraph, clause or provision of this ordinance shall for any
reason be held to be invalid or unenforceable, the invalidity
or unenforceability of such section, paragraph, clause or
provision shall not affect any of the remaining provisions
of this ordinance.
Section S7. Emergency Clause. By reason of the
fact that the City needs the immediate use of the sanitary
sewerage system, it is hereby declared that an emergency exists
threatening "riot, infectious disease, or other impending danger"
to the public; and this ordinance is necessary to the immediate
preservation of the public peace, health and safety.
Section S8. Publication and Effective Date. This
ordinance shall be published once in one issue of the Idaho
State Journal, the official newspaper of the City; and this
ordinance shall be in full force and effect from and after its
passage, approval and publication, the Council dispensing with
the rule providing that ordinances must be read on three
different days, all as provided by law.
PASSED AND APPROVED by the City Council of the City
of Chubbuck, Idaho, this 9th day of July, 1974. SIGNED by
the Mayor of the City of Chubbuck, Idaho, on the same date.
Mayor
-64-
STATE OF IDAHO
COUNTY OF BANNOCK
CITY OF CHUBBUCK
I, Vera C. Armstrong, the duly chosen, qualified and
acting Clerk of the City of Chubbuck, in the County of Bannock
and State of Idaho, do hereby certify:
1. That the foregoing pages numbered from (1) through
{3), including the 10-1-72 bond ordinance, pages numbered -1-
through -64- inclusive, are true, perfect and complete copies of
the record of proceedings of the City Council of the City had
and taken at the lawful meeting of said Council held at S160
Yellowstone Avenue, in said City, on Tuesday, the 9th day of
July, 1974, at the hour of 8:00 P.M., as recorded in the
regular official book of records of the proceedings of said
Council kept in my office.
2. That said proceedings were duly had and taken
as therein shown, that the meeting therein shown was duly
held, that the persons therein named as present at said meeting
were present as shown by said minutes, and that all members of
the City Council were duly notified of said meeting.
WITNESS my hand and the seal of the City of Chubbuck,
this 9th day of July, 1974.
City Clerk
(4)
STATE OF IDAHO
COUNTY OF BANNOCK
CITY OF CHUBBUCK
A regular meeting of the City Council (herein
"Council"), of the City of Chubbuck (herein "City") in the
County of Bannock and State of Idaho, was held on Tuesday,
the 9th day of July, 1974, at the hour of eight o'clock P.M.,
at the Chubbuck City Offices, 5160 Yellowstone Avenue, in the
City, being the regular meeting place of ~he Council, at
which meeting there were present and answering the roll call
the following, who constitute a quorum:
John O. Cot~nt_. Jr.
r~!~ _~_~ Ki~gbor~
Earl L. Romriell
Mayor:
Councilmen:
Jack J. Menard
Absent:._ Wayne G. Taylor
These persons constitute all the members thereof.
There were also present Vera C. Armstrong, the
City Clerk, and Donald Burnett, the City Attorney.
Thereupon, the following proceedings, among others,
were duly had and taken.
Councilman .Me,~d introduced and moved the
adoption of the following ordinance, entitled:
"AN ORDINANCE CONCERNING THE SEWER SYSTEM OF THE CITY
OF CHUBBUCK, IDAHO; DECLARING THE RESULTS OF THE VOTE
ON THE SEWER REVENUE BOND QUESTION SUBMITTED AT A
SPECIAL, MUNICIPAL, BOND ELECTION HELD ON TUESDAY,
MARCH 8, 1972; AUTHORIZING THE ISSUANCE OF THE SEWER
REVENUE BONDS OF THE CITY, IN THE AGGREGATE PRINCIPAL
AMOUNT OF $1,000,000.00, PAYABLE SOLELY FROM THE RATES
AND CHARGES FOR THE USE OF, AND THE SERVICE RENDERED BY,
THE MUNICIPAL SEWER SYSTEM, FOR THE PURPOSE OF DEFRAYING
WHOLLY OR IN PART THE COST OF CONSTRUCTING AND
ACQUIRING THE CITY'S SEWERAGE SYSTEM; PROVIDING THE
FORM, TERMS AND CONDITIONS OF SUCH BONDS, THE MANNER
AND TERMS OF THEIR ISSUANCE, THE MANNER OF THE EXECU-
TION THEREOF, THE METHOD OF PAYING THE BONDS, AND THE
SECURITY THEREFOR; PROVIDING FOR THE COLLECTION AND
DISPOSITION OF THE REVENUES DERIVED FROM SUCH SEWERAGE
(1)
SYSTEM; PRESCRIBING OTHER DETAILS CONCERNING THE
BONDS AND THE SYSTEM, INCLUDING, WITHOUT LIMITATION,
COVENANTS AND AGREEMENTS IN CONNECTION THEREWITH;
RATIFYING ACTION HERETOFORE TAKEN TOWARD SUCH SEW-
ERAGE PROJECT, TOWARD THE ISSUANCE OF THE CITY'S
SEWER REVENUE BONDS THEREFOR, AND TOWARD HOLDING THE
ELECTION; REPEALINC'' ALL ORDINANCES IN CONFLICT HERE-
WITH; AND PROVIDING THE EFFECTIVE DATE OF THIS ORDIN-
ANCE."
The motion was made by Councilman ]~n,~,-~.ll and
seconded by Councilman ~gh_-~n that the rules requiring
ordinances of a general and permanent nature to be fully and
distinctly read on three different days be dispensed with and
that the ordinance be read in full and at length and placed
upon its final passage.
Thereupon, the Clerk was ordered to call the roll on
such motion, and the roll call upon such motion was as follows:
Those Voting Aye:
Those Voting Nay:
Those Absent:
None
~ Wayne G. Taylor
The Mayor thereupon declared that the motion, having
been duly passed by not less than one'half plus one of the mem-
bers of the full City Council, had been duly carried. The
ordinance was then read by the Clerk in full and at length as
follows:
(The 10-1-72 Bond Ordinance, consisting
of pages -1- through -64-, follows.)
(2)
Councilman .... ~4nEhorn seconded the motion for
the adoption of said ordinance.
The Clerk was then'instructed to call the roll on
the passage of the ordinance an~ the roll call on said pas-
sage of said ordinance resulted as follows:
Those Voting Aye: Dwain A, Kin~orn
Earl L, R~mrie]~
Jack J, Menard
Those Voting Nay:
Ne.ne
The ordinance was thereupon, by the Mayor, declared
to have' been duly passed.
It was moved by Councilman K~-~.crn and seconded
by Councilman ..Menard that the Clerk of the City be
ordered to publish said ordinance in full immediately and
in at least one issue of the Idaho State Journal ,
the official newspaper of the City.
Thereupon, the Clerk was ordered to call the roll
on said motion and the roll call upon said motion was as fol-
lows:
Those Voting Aye:
Ec~-i L,
JaCk J. Menard
Those Voting Nay:
None
The Mayor thereupon declared that the motion was
duly carried.
There being no further business to come before the
meeting, the meeting was, on motion duly made, seconded, and
carried, adjourned.
CitY Clerk
Mayor
(3)
NOTICE AND CALL OF REGULAR MEETING
TO THE CITY COUNCIL OF THE
CITY OF CHUBBUCK, BANNOCK COUNTY,
STATE OF IDAHO:
NOTICE IS GIVEN that the regular meeting of the
City Council (herein "Council") of the City of Chubbuck,
Idaho (herein "City"), will be held at the Chubbuck City
Offices, 5160 Yellowstone Avenue, in the City, at 8:00 p.m.,
on Tuesday, the 9th day of July, 1974. The object of said
meeting, among the regular agenda items, is to consider the
adoption of an ordinance authorizing the issuance of the City's
sewer revenue bonds in the Principal amount of $1,000,000.00,
and for the transaction of such other business incidental to
the foregoing as may come before said meeting.
Mayor
ACKNOWLEDGMENT OF NOTICE
AND CONSENT TO THE REGULAR MEETING
We, the undersigned Mayor and members of the Council,
acknowledge receipt of the foregoing notice of the regular
meeting, and we hereby waive any irregularities, if any, in such
notice and in the manner of service thereof upon us, and con-
sent and agree to the holding of such regular meeting at the
time and place specified in such notice, and to the transaction
of all business which may come before such meeting.
Mayor: ~~/O, ~/~'~~
Councilmen: