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Show ORDINANCE No. 105 AN ORDINANCE PROVIDING VOR THE CONSTRUCTION OF IMPROVEMENTS AND ADDITIONS ADDI-TIONS TO THE MUNICIPALLY OWNED WATER WORKS SYSTEM SYS-TEM OF THE CITY OF CEDAR CITY. UTAH. AUTHORIZING AND PROVIDING FOR THE ISSUANCE IS-SUANCE OK WATER WORKS JXTENSION REVENUE BONDS, SERIES OF JULY 1. 1950, OF CEDAR CITY, UTAH. IN THE AGGREGATE PRINCIPAL AMOUNT OF SEVENTY-FIVE THOUSAND DOLLARS ($75,000.-f ($75,000.-f 0) FOR THE PURPOSE OF DEFRAYING DE-FRAYING THE COST OF MAK-INC, MAK-INC, SAID IMPROVEMENTS; PRESCRIBING THE FORM AND OTHER DETAILS OF SAID BONDS; PROVIDING FOR THE COLLECTION AND DISPOSITION OF REVENUES TO BE DERIVED FROM SAID SYSTEM; MAKING OTHER PROVISIONS WITH RESPECT RE-SPECT TO THE OPERATION OF SAID SYSTEM AND THE ISSUANCE ISSU-ANCE OF SAID BONDS; PROVIDING PROVID-ING FOR THE PAYMENT OF BOTH THE PRINCIPAL AND THE INTEREST ON SAID BONDS FROM A FIXED PROPORTION OF THE NET REVENUES OF SAID SYSTEM; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH AND FIXING THE TIME SUCH ORDINANCE SHALL TJFCOME EFFECTIVE. WHEREAS, the City of Cedar City, Utah, now owns and op-iiies. op-iiies. and for several years l'st has owned and operated, a water works system for the pur-post pur-post of supplying water to said City and Ihe inhabitants there-of. there-of. and WHEREAS, it is necessary for the immediate preservation of the peace, health and safety of Cedar City. Iron County, State cf Utah, and the inhabitants thereof, lhat improvements and additions be made to the City's nunldpal water works system, Tor the purpose of adequately supplying water to said City and Jthe inhabitants thereof, and WHEREAS, pursuant to the provisions of Sections 76A-2-1 to TSA-2 23, Utah Code Annotated Ii13, commonly known as Ihe ..tangrr Act, the Mayor and City Council of said City are authorised author-ised to provide for the construction construc-tion oT improvements and additions addi-tions to said system and to de-fray de-fray the cost thereof by the is-sua is-sua nee of revenue bonds of said City payable solely from a fixed pioiwrtion of the net revenues to be derived from the operation f said water works system as so improved, and it is considered by the Mayor and City Council to be necessary and to the best interests in-terests of said City now to pro-vine pro-vine for the construction of such improvements and additions and .the (issuance of such bonds, and WHEREAS, in full conformity with Ihe laws of the State of l"tah. particularly Sections 76A-2-2 to 76A-2-23 Utah Code An-routed, An-routed, 1913, the Mayor and City Council of Cedar City, by at (east two-thirds vote of all Councilmen, have heretofore de-teimined de-teimined to proceed under said net to raalie such Improvements and additions, and has heretofore hereto-fore caused to be made a com-irrhe.nsive com-irrhe.nsive estimate of the value of the existing municipal water works system, of the cost and value of said improvements and additions, and of the net opera t-Htg t-Htg rrvenue.1 to be derived from the entire project when such lm-Movements lm-Movements and additions are completed, by n competent en-tnneer en-tnneer approved by the State En. XiTjrcr of the State of Utah, which competent engineer Is tiervby found to have no connection connec-tion with any manufacturer or seller of machinery', pipo. or oth- rr equipment, to be used In said project or in the Installation thereof or with any person or corporation engaecd In the same business, nnd the Mayor and City Cvuncil have heretofore approved, ap-proved, adopted and filed said estimates, nnd WHEREAS, the said estimate if said engineer places the value f the existing municipal water worts system at Three Hundred 'Two Thousand Two Hundred iety Two Dollars 4 Forty Six Cents (TT02.292.ir). the cost and value of said Improvements nnd Editions to be Seventy-five Thousand Dollars ($73,000.00), the total value of the new plant alter improvements to be Three Hundred Seventy Seven Thousand Thous-and Two Hundred Ninety Two Dollars & Forty Six Cents (377.-292.46), (377.-292.46), the value of the improvements improve-ments and additions to be constructed con-structed to be 19.88',;, of the value val-ue of the total plant as improved, that the improvements and additions ad-ditions proposed to be constructed construct-ed will be paid for by the issuance issu-ance of water revenue bonds in the sum of Seventy-Five Thousand Thous-and Dollars ($75,000.00); that the value of the plant constructed by said revenue bonds will be 19.88 of the value of the total plant as improved; that the estimated es-timated gross revenue to be derived de-rived from the entire project when the contemplated improvements improve-ments and additions are completed, com-pleted, will be not less than Fifty Fif-ty Two Thousand Four Hundred Twenty Six Dollars & Fourteen Cents ($52,426.14) per annum, and that the cost of maintenance and operation will be approximately approxi-mately Seventeen Thausand Three Hundred Seventy Dollars & Thirty Six Cents ($17,370.36) per annum, and that the net operating op-erating revenue, after paying operation op-eration costs, will be not less than Thirty Five Thousand Fifty Fif-ty Five Dollars & Seventy Eight Cents ($35,055.78) per annum; that the estimated net operating operat-ing revenue to be allocated to the payment of bond interest and principal on the proposed pro-posed issue of $75,000.00 water works revenue bonds will not be less than Six Thousand Nine Hundred Sixty Nine Dollars & Nine Cents ($6,969.09) per annum; an-num; and said estimate evidences evi-dences the sufficiency of the system sys-tem to cover the cost of operating operat-ing and maintaining said system sys-tem and the requirements of the principal and interest of the bonds to be issued hereunder, and WHEREAS, it will be necessary to borrow money in the amount of Seventy-Five Thousand Dollars Dol-lars ($75,000.00) to pay the cost cf making the improvements and Additions herein outlined, by the issuance of revenue bonds pay-i- . . . erne irom ana secured by a pledge of a fixed portion of the net revenues to be derived from the operation of the water works system of said City after construction con-struction and completion of the Improvements and additions: NOW. THEREFORE, BE IT ORDAINED OR-DAINED BY THE MAYOR AND CITY COUNCIL OF CEDAR CITY IRON COUNTY', STATE OF UTAH: Section 1. That the City of Cedar Ce-dar City construct improvements Mid additions to its water works system by the construction of a icservoir and appurtenances and the purchase of necessary equip-ment, equip-ment, to increase the capacity of said water works system, at an estimated cost of $70,000.00. Section 2. That for the purpose of defraying the cost of the construction con-struction of such Improvements and additions to said svstem as above outlined there shall be, nd there hereby are authorized to be issued bonds to bp known as "Cedar City Water Works Ex-tension Ex-tension Revenue Bonds. Series of July 1, 1950", in the aggregate principal amount of Seventy-Five Thousand Dollars ($75,000.00). wl iih bonds shall be pavable solely out of a fixed proportion, as hereinafter specified, of the net revenues derived from the op-eration op-eration of said system and not otherwise. Such net revenues shell be deemed to be the gross revenues of such system after deductions de-ductions only for the cost of operating op-erating and maintaining the system sys-tem and the expenses of any bet-tetments bet-tetments or replacements to keep t h A cam In .1 - . . t oau,K 111 nwu repair ana working order. I Section 3. That the bonds hereby here-by authorized shall be dated July 1, 1950, shall be in the de-rumination de-rumination of Sf.000 each, shall bear Interest at a rate to be de-krmlned de-krmlned at the time they are cflered for sale, numbered, maturing ma-turing as follows: Numbered Amt. Maturity Matur-ity 1 to 3 Inclusive $3,000 71 53 4 to C Inclusive 3.000 7154 7 to 9 Inclusive 3.000 7-1 '55 10 to 12 Inclusive 3.000 7156 13 to 13 Inclusive 3.000 7157 16 to 18 Inclusive 3.000 7 1 38 19 to 21 inclusive 3,000 7 1 '59 22 to 24 inclusive 3,000 7160 25 to 27 inclusive 3,000 7161 28 to 30 inclusive 3.000 71 62 31 to 33 inclusive 3.000 71 63 34 to 36 inclusive 3.000 7 1. 64 37 to 39 inclusive 3.000 71 65 40 to 42 inclusive 3.000 7 1 66 43 to 45 inclusive 3.000 71 '67 16 to 48 inclusive 3.000 71 68 49 to 51 inclusive 3,000 71,69 52 to 54 inclusive 3.000 7, 170 55 to 57 inclusive 3.000 7 1 71 58 to 60 inclusive 3,000 7,1 72 61 to 63 inclusive 3,000 7 1 73 64 to 66 inclusive 3,000 7 1 74 67 to 69 inclusive 3.000 71-73 70 to 72 inclusive 3.000 7 1 76 73 to 75 inclusive 3.000 7 1 77 interest payable semi annually on the first days of January and July of each year until paid, and shall have coupons attached thereto evidencing such interest, signed with the facsimile signature signa-ture of the Treasurer of the City and countersigned with the facsimile fac-simile signature of the City Recorder Re-corder of the City. Said bonds shall be signed by the Mayor of the city, countersigned by the City Treasurer, and the seal of the City affixed thereto, and at- . i i a.. . a - - t- i n it. lesieu oy uie cuy itecoraer. coin' principal and interest of said bonds shall be payable in law-ful law-ful money of the United States of America at the First Security Bank of Utah, N. A., Exchange Place Branch, Salt Lake City, Utah. All Bonds of this issue shall be optional for redemption on the first day of any month, at par, plus accrued interest, on thirty days written notice, prior to the date of redemption. Said bonds and the coupons attached thereto shall be fully negotiable, shall have all the qualities of negotiable paper and the holders thereof shall enjoy all rights enjoyed by the holders of negotiable instruments under the pre jsions of the Negotiable Instruments Law. Section 4. Said bonds and the coupons attached thereto, except as to consecutive numbers and maturity dates, shall be in substantially sub-stantially the following form: UNITED STATES OF AMERICA STATE OF UTAH CEDAR CITY CEDAR CITY WATER WORKS EXTENSION REVENUE BOND SERIES OF JULY 1, 1950 No $1,000.00 The City of Cedar City in the County of Iron and State of Utah, for value received, hereby promises prom-ises to pay to the bearer hereof, in the manner hereinafter provided, pro-vided, the sum of One Thousand Dollars ($1,000.00) on the first day of July, A. D., 19 with interest thereon from date until payment at the rate of per cent ( rc ) per annum, payable semi-annually cn the first day of July and the first day of January in each year, both principal and interest being payable in lawful money of the United States of America at the First Security Bank of Utah, N. A., Exchange Place Branch, in Salt Lake City, Utah upon presentation and surrender of this bond or the annexed coupons cou-pons as they severally become due. All bonds of this issue shall be optional for redemption on the first day of any month, at par. plus accrued interest, on thirty days written notice, nrior to the date of redemption. This bond is one of an authorized author-ized issue in the aggregate principal prin-cipal amount of Seventv-Five Thousand Dollars ($75,000.00) is-sued is-sued for the purpose of defraying defray-ing the cost of the construction of a reservoir and necessary appurtenances ap-purtenances and the purchase of necessary equipment to increase thr capacity of the municipally owned water works system, all in full conformity with" the Constitution Consti-tution and laws of the State of Utah, and an Ordinance of the City duly enacted and adopted prior to the Issuance hereof. This bond is issued under the pro. visions of Sections 7GA-2-1 to 76A-2-23, Utah Code Annotated, 1943, and it does not constitute an indebtedness of the City of Cedar City within any State constitutional con-stitutional provision or statutory limitation. This bond is one of an Issue of bonds payable as to both principal prin-cipal and interest solely from and secured by a pledge of Nineteen and Eighty Eight Hun-dredth Hun-dredth per cent 19.8Sr) of the rt revenues of said water works system, said revenues being be-ing defined as the gross revenues ot such system, after deductions only for the cost of operating and maintaining the system and the expenses of any betterments or replacements to keep the same In good repair and working order. or-der. It Is hereby covenanted and agreed that the City will charge rates for water which will be sufficient nt all times, until this bond and the couxns attached thereto are fully paid and discharged, dis-charged, to produce net revenues from said system sufficient to pay the Interest on and the prin-cipal prin-cipal of this bond, as and when thr same become due and payable, pay-able, but such rates shall not be In excess of a reasonable rate for the service rendered. This bond U subject to the condition nnd every holder hereof here-of by accepting the same agrees with the obligor and every subsequent sub-sequent holder that (a) the do-livery do-livery of this bond to any transferee trans-feree shall vest title In this bond Ofi.l the Interest represented thereby in such transferee lo the same extent for all purposes as would the delivery under like circumstances of any negotiable negotia-ble instrument payable to bearer, bear-er, (b) the obligor and any agent cf the obligor may treat the bearer of this bond as the absolute ab-solute owner hereof for all purposes pur-poses and shall not be affected by any notice to the contrary; c) the principal of and the in-teiest in-teiest on this bond will be paid and this bond and each of the coupons appertaining thereto are transferable, free from and with, out regard to equities, set offs and cross-claims between the obligor and the original of any intermediate holder hereof; Id) the surrender to the obligor or .any agent of the obligor of this bond and of each of the coupon? cou-pon? shall be a good discharge to the obligor of the same. It Is hereby certified, recited and declared that all things essential es-sential to the validity of this bond exist, have happened and have been done, and that every requirement of law affecting the issuance hereof has been duly complied with. I.-N W 11 IS ESS WHEREOF, the City of Cedar City has caused this bond to be signed by its Mayor, countersigned by its City Treasurer and attested by its City Recorder under the corporate corpor-ate seal of said City, and has cpused the interest coupons hereto here-to attached to be executed by the facsimile signatures of the City Treasurer and the City Recorder, Re-corder, which officials by the execution of this bond do qdopt as and for their own signatures their respective facsimile signatures signa-tures appearing on said coupons all as off the first day of Julv, 1950. Mayor, Cedar City, Utah Attest: City Recorder, Cedar City, Utah (SEAL) (Form of Coupon) No $ On the first day of January July, A. D., 19 , the City of Cedar City in the County of Iron and State of Utah, will pay to bearer Dollars in lawful money of the United States of America at the First Security Bank of Utah, N. A.. Exchange Ex-change Place Branch, Salt Lake City, Utah, unless the hereinafter mentioned bond shall have been heretofore properly called for redemption, re-demption, in the manner described des-cribed in the bond to which this coupon is attached, and not otherwise, being six months' interest in-terest on its Water Works Extension Ex-tension Revenue Bond. Series of July 1, 1950, dated July 1, 1950. This coupon is issued under the provisions of Section 76A-2-1 to 76A-2-23, Utah Code Annotated 1943, and it does not constitute an indebtedness of the City within with-in any state constitutional provision pro-vision or statutory limitation. (Facsimile Signature) City Treasurer Countersigned: (Facsimile Signature) City Recorder Bond No Section 5. That said bonds shall be sold at once at public sale after Publication of a notice of sale for at least ten days by publication in three weekly is sues of the Iron County Record a newspaper published in Cedar , City. Utah, and of general circulation cir-culation therein. The proceeds 'from the sale of the bonds so Isold shall be deposited promptly I upon the receipt of such proceeds : in a seperate account or accounts ; in a bank or banks which are members of the Federal Reserve System and of the Federal Deposit De-posit Insurance Corporation, and the City Treasurer is hereby au-ithoiized au-ithoiized and directed to deposit such proceeds in such bank or bands. All moneys in such special spe-cial account or accounts .'hall be used solely for the construction jof the improvements and additions addi-tions to the water works system, as described in Section 1 hereof, .including any architectural, en-gineering, en-gineering, legal and other exilic ex-ilic uses Incidental thereto. Upon , completion of such Improvements 'and additions any unexpended j balances In such account or accounts, ac-counts, together with any accrued ac-crued interest received on the sale of such bonds, shall be paid into the Extension Revenue Bond Series of July 1, 1950 Fund hereinafter here-inafter provided for. and used for the purpose of said Fund. The Issue of any of the bonds herein authorized by the City shall constitute a warrant by and on behalf of the City for thej benefit of each and every holder of any of wild bonds, that said bonds have been Issued for a 1 valuable consideration in full conformity with law. ' Section 6. There shall be and there Is hereby created and maintained, a sinking fund to1 be known as "Cedar City Water Works Extension Revenue Bond Series of July 1, 1950 Sinking Fund" into which there shall be set aside from the future earnings earn-ings of said water works system (after payment of the necessary expenses of maintaining and operating op-erating said system), after the date of the issuance of these bonds, in approximately equal monthly installments. 19.88'e of said revenues. Said sinking fund shall be used solely and only, and is hereby pledged for the purpose of paying the interest on and the principal of the bonds herein authorized to be issued, and whenever there is available in said sinking fund an amount sufficient to pay the succeeding two year's principal and interest additional payments need not be made into the sinking fund until such time as the amount available in the sinking fund will be less than an amount sufficient suf-ficient to pay the principal and interest due in the succeeding two years. Whenever the amount in the sinking fund is equal to .i . - . i. . . . : 1 uie enure amoum oi uie piiim-pal piiim-pal and Interest to become due on all of the bonds issued hereunder here-under then outstanding, then no further payments need be made into said sinking fund. All accrued accru-ed interest received from the purchaser pur-chaser of said revenue bonds at the time of purchase thereof shall be paid into the sinking fund. The City has heretofore employed em-ployed an engineer of recognized standing approved by the State Engineer of Utah to make an appraisal ap-praisal of the value of the exist-ing exist-ing water works system of the City of Cedar City and the cost and value of the improvements and additions herein provided to be made to said system, and of the value of said system as it will exist after improvements have been made, which reports and appraisals are on file in the records of said City, and which find the present value of said system to be Three Hundred Two Thousand Two Hundred Ninety Two Dollars and Forty Six Cents ($302,292.46), the cost and value of said improvements and additions addi-tions to be Seventy-Five Thousand Thou-sand Dollars ($75,000.00), and the total value of the new plant after improvements to be Three Hundred Seventy Seven Thousand Thou-sand Two Hundred Ninety Two and Forty Six Cents ($377,292.46) the value of the Improvements and additions proposed to be constructed to be 19.88 of the value of the total plant as improved, im-proved, that the improvements and additions proposed to be constructed will be paid for by the issuance water works revenue reven-ue bonds in the sum of Seventy-Five Seventy-Five Thousand Dollars ($75,000.-00); ($75,000.-00); that the value of the plant constructed by said revenue bonds will be 19.88rr of the value of the total plant as improved; im-proved; that the estimated gross revenue to be derived from the entire project when the contemplated contem-plated improvements and additions addi-tions are completed, will be not less than Fifty Two Thousand Four Hundred Twenty Six Dol-lnrs Dol-lnrs and Fourteen Cents (32,426.-11) (32,426.-11) per annum, and that the cost of maintenance and operation will be approximately Seventeen Thousand Three Hundred Seventy Seven-ty Dollars & Thirty Six Cents $17,370.36) per annum, and that the net operating revenues, alter paying operation costs, will be not less than Thirty Five Thousand Fifty Five Dollars Dol-lars and Seventy Eight Cents $r,0".78 per annum; that the estimated net operating revenue to be allocated to the Payment of bond interest and principal on the proposed Issue of $73,000.00 Water Works Revenue Rev-enue Bonds will be not less than Six Thousand Nine Hundred Sixty Six-ty Nine Dollars and Nine Cents ($6,969,091 mt annum. Said valuations valu-ations and appraisals are hereby adopted, confirmed nnd ratified by the mayor and City Council of said City and it is hereby expressly ex-pressly found and declared that the value of the present system, the value of the proposed improvements, im-provements, and the value of the system after such Improvements Improve-ments shall have been constructed, construct-ed, are as above set out, and, based on said valuations, it Is expressly found, ordered and directed di-rected by the Mayor and Cltv Council that Nineteen nnd Eight's' Eight Hundredths U9KH", ) of the Income to be derived from said water works system as so improved shall be deemed to be Income Herlved exclusively from the Improvements herein provided provid-ed to be constructor! from the proceeds of the sale of these bonds, nnd that Nineteen nnd Eighty Eight Hundredths (19. KX';i of the net revenues of said system, as net revenues are hereinbefore here-inbefore defined, shall be pledged pledg-ed and allocated for the purpose of the payment of principal and interest on the bonds herein authorized to be Issued for the payment of the cost of the con- aiiuiuuii ui saiu iiiipiuvciucius and additions. That the moneys set aside to be paid into the Cedar Ce-dar City Water Works Extension Revenue Bond Series of July 1, 1950 Sinking Fund, hereinbefore provided for, shall be used and are hereby pledged by the City for the purpose of paying the semi annual interest and the principal requirements of the bonds under this Ordinance and outstanding at that time. On or before the fifteenth day of December De-cember and June in each year, funds sufficient to meet the interest in-terest and principal payments falling due on the first day of January and July following res-pectively res-pectively shall be paid over to the paying agent of the bonds. To the amount of each payment shall be added the paying agent's charges and all expenses In connection con-nection with the forwarding of funds. All moneys In said Fund either shall be deposited in banks in accordance with the provisions of the State Depository Deposi-tory Act or shall be invested in short term general obligation bonds of the State of Utah or of the United States Government. Section 7. That It shall bethe duty of the Mayor and City Council to cause a seperate accounting ac-counting system to be maintained maintain-ed for water works system, to be kept by the City Recorder. The City Recorder shall keep proper books of record and accounts ac-counts in which complete and correct entries shall be made of all transactions relating to said svstem. These accounts shall conform con-form to the requirements of the Public Service Commission of Utah for utilities rendering similar sim-ilar service. The City shall furn-ish furn-ish any holder or holders, made not more than sixty days after the close of each fiscal year, ccmplete financial statements of the said system covering such fiscal year and certified by the City Recorder. Section 8. That rates for services ser-vices furnished by such water works system shall be reasonable reason-able and uniform in respect to cluss at all times. The City expressly ex-pressly covenants that such rates will be maintained as will be adequate to provide revenues sufficient for the payment of the interest on and principal of all bonds issued hereunder as andi when the same become due nnd payable, to create an Extension liond Series of July 1, 1950 Fund iis herein before provided, to provide pro-vide for the payment of the expenses ex-penses of administration and op-eration op-eration of the system and such expenses for the maintenance of the system necessary to preserve the same In gMd repair and; working order, to build up a re-1 oive for depreciation, and to' build up a reserve for improve-1 ments, betterments and exten-; slims other than those necessary to maintain the same In good) repair and working order. The City hereby further covenants that If such rates at any time be-cr.mo be-cr.mo insufficient for the purposes hereinabove in this section specified, speci-fied, such rates shall be revised and fixed from time to time, and as often as necessary, so as to produce revenues sufficient for such purposes; prorided. however anything In this Ordinance to the contrary notwithstanding, such rates shall never be fixed In an amount In excess of a reasonable rate for the service tendered. None of the facilities afforded by the water system shall be furnished without a reasonable charge being made therefor. In Ihe event that the City or any department, agency or Instru-ir Instru-ir utality thereof shall avail self of the facilities or services offered offer-ed by said system, the reason able cost and value of such facilities fa-cilities or services shall be charged charg-ed against the city or such department, de-partment, agent or instrumentality instrumen-tality and shall be paid for as the charges therefor accrue. The revenues so received shall be deemed to be revenues derived from the operation of the water works system and 6hall be used and accounted for in the same manner as any other revenues derived from the operation of said system. Section 9. That the City shall maintain the water system and all extensions and additions thereto in good condition and working order and shall operate the same in an efficient manner and at a reasonable cost. As long as any of the bonds herein authorized to be issued remain outstanding, said City will maintain main-tain Insurance on the system, for the protection of the holders of such bonds, of a kind and in an amount which would usually be carried by private companies engaged en-gaged in the operation and maintenance main-tenance of a similar system. Such insurance shall be not less in amount than is sufficient to put the system Into good operating opera-ting condition after the happening happen-ing of an event against which said system shall be insured. Any proceeds received from such insurance after the happening of any such event shall be immediately immedi-ately used for the purpose of putting the system into good operating op-erating condition by repair and replacement of any part, parts or the whole of such , system which may be damaged or destroyed, de-stroyed, or, If such proceeds, to-gether to-gether with any other funds available for the purpose, shall not be sufficient to place the system in good operating condition, condi-tion, such proceeds shall be invested in-vested in United States Government Govern-ment Bonds or in such high grade municipal bonds maturing in not more than ten years from date of purchase, or in any such other Investments of like grade, term and character as are usual-ly usual-ly held by commercial banks as a reserve against deposit withdrawals, with-drawals, and Nineteen and Eighty Eight Hundredths per cent (19.88",) of the income thereof is hereby pledged to the I payment of the principal of and interest on the bonds herein authorized to be issued. Such i proceeds shall h konf (nvoctnrl until such time as funds, which together with such proceeds shall be sufficient to put te system In good operating condition, shall be available for such purpose, at which time said proceeds may be withdrawn from Investment and uyed for such purpose, or until such time as the outstanding principal and Interest on all of the bonds herein authorized to be Issued, and then outstanding, have been paid. After the system sys-tem has been restored to operating operat-ing condition, any remainder of such insurance proceeds shall be pi.ld Into the "Water Works Income In-come Fund of Cedar City". The expense of such Insurance shall (Continued to Page 8) ORDINANCE No. 10S (Continued from Pa? 7) be considered one of the operating operat-ing costs of the system. Section 10. That as long as any of the bonds herein authorized to be issued are outstanding, the City shall not mortgage, pledge or otherwise encumber the water works system or any part thereof there-of and shall not sell, lease or otherwise dispose of any substantial sub-stantial portion of said system, but the City may enter into arrangements ar-rangements for the Joint use of any of its facilities with other utilities and may exchange or sell any portion of sale system which shall have been ieplaced by other property of at least equal value, or which shall cease to be necessary for the efficient operation of said system: pro-Tided, pro-Tided, however, that in the event of any sale the proper proportion propor-tion of such consideration shall be paid into the Water Works Income Fund of Cedar City and be used for the purposes of said fund. Section 11. That any purchaser of 25 in aggregate principal amount of the bonds at the time then outstanding, or any holder or holders of 25 of the bonds at any time outstanding, shall have the right at all reasonable times to inspect the water system sys-tem and all records, accounts and data of the City relating thereto. Any holder of said bonds or any of the coupons representing represent-ing Interest thereon, may either in law or In equity by suit action, ac-tion, mandamus or other proceeding pro-ceeding enforce and compel performance per-formance of all duties on the rart of the City required by this Ordinance, Including the making and collection of sufficient rates or charges for the service and facilities afforded by said system sys-tem and the application of the Income and revenue thereof. Section 12. The bonds authorized author-ized to be Issued hereunder and from time to time outstanding shall not be entitled to any priority pri-ority one over the other in the application of the revenues of said system, regardless of the time or times of their issuance, it being the Intention of the Mayor and City Council that there shall be no priority among the bonds authorized to he issued is-sued pursuant to this Ordinance regardless of the fact that they may be actually Issued and delivered de-livered at different times. It is hereby expressly agreed and covenanted cov-enanted that the City will not hereafter Issue any bonds or ob-ligations ob-ligations payable from revenues of said water works system, until all bonds herein authorized have been paid in full, unless such additional bonds are issued in such manner that they are in all respects subordinate to the bonds herein authorized, and in such, manner that the prior Hen of the bonds herein authorized on the fixed proportion of the net revenues reve-nues of said system herein pledged to the payment of said bonds is not in any wise affected affect-ed or impaired. Nothing In this Ordinance contained, however, shall be construed to prevent the City from purchasing, construe-ing construe-ing or acquiring additions, extensions, ex-tensions, improvements, and bet-tcrmcnts bet-tcrmcnts of said system which are In themselves revenue producing, pro-ducing, by the Issuance of revenue reve-nue bonds and pledging of the payment of such bonds the reve-nue reve-nue derived from or lawfully allocated al-located to such additions, betterments, bet-terments, Improvements and ex-tensions. ex-tensions. Section 13. That hM f tho purchase of said $73,000.00 Water Works Revenue Bonus shall he received and considered by the Mayor and City Council of the City at the hour of 8:00 o'clock P. M., on Thursday, the 20th day of July, 1950, and that the City Recorder of said City is hereby authorized, Instructed and directed di-rected to cause to be published advertisement of sale in three issues, is-sues, at weekly Intervals, of the Iron County Record, a newspaper published in and of general circulation cir-culation in the City of Cedar City, Utah, asking for bids for said bonds, the first date of publication pub-lication to be at least two weeks prior to the date specified for the receipt of bids for said bonds, which notice shall be in substantially sub-stantially the following form: NOTICE OF SALE OF SONDS Notice is hereby given that sealed bids will be received by the Mayor and City Council of Cedar City, Iron County, State of Utah, until the hour of 8:00 o'clock o'-clock p. m. on Thursday the 20th of July, A. D., 1950 for the purchase pur-chase of Seventy-Five Thousand Dollars ($75,000.00) Cedar City Water Works Extension Revenue Bonds, Series of July 1, 1950 of said City, payable from Nineteen and Eighty Eight Hundredths per cent (19.88) of the net revenues of the water system of the City. The issuance of said bonds is provided for by Ordinance No. 105, adopted June 22, 1950, reference refer-ence to which Ordinance is hereby here-by made and depends upon said Ordinance becoming effective as in said Ordinance provided. Said bonds will be dated July 1, 1950, and shall mature $3,000.-00 $3,000.-00 on July 1st In each of the years 1953 to 1977. both Inclusive. Inclus-ive. All bonds of this issue shall be optional for redemption on the first day of any month, at par, plus accrued Interest, on thirty days written notice, prior to the date of redemption. All bids must be without condition con-dition or qualification, and shall be accompanied by n certified check in the amount of $3,750.00 as a evidence of good faith, to be forfeited to said City in case the successful bidder shall fail or refuse tn rnmnlv with thn terms of his bid. No bid for less than par and accrued Interest will be considered. The right Is reserved to reject nny and all bids. H order of the Mayor and City Council of Cedar City, Utah. Iron County, State of Utah, this 22nd dr.y of June, 19r0. L. V. BROADBENT Mayor. ATTEST: ELLEN A. SIMKINS. City Recorder. (SEAL) Section 14. That the provisions of this Ordinance shall constitute a contract between the City of Cedar City and the holder or holders of the bonds herein authorized auth-orized to be Issued, and that af-tor af-tor the Issuance of any of such bonds no change, variation or alteration of anv kind in the provisions of this Ordinance shall be made in any manner except as herein provided until such time as all of said bonds Issued hereunder and Interest thereon have been paid In full. If the provisions of any law shall require the revenues accruing accru-ing to the Water Works Income Fund of Cedar City to be Included Includ-ed within the annual budget of the City, the City In its annual appropriation ordinance, shall appropriate Ruch revenues to the payments and purposes hereinabove herein-above in Section 6 specified; but that the city shall in no event be obligated to appropriate anv of Its general funds, or tax reve-nces reve-nces to any of such payments or purposes. Section 15. Except for the obll-gatlon obll-gatlon to pay the reasonable cost nna values of facilities or services ser-vices afforded by the svstem and used by the City, as set forth In Section 8 of this Ordinance, none of the covenants, agreements. representations, or warranties contained in this Ordinance, or In the bonds issued hereunder shall ever impose or be construed an imposing any liability, obligation ob-ligation or charge against the City, or its general credit, payable pay-able out of general funds, or out of funds derived from taxation, or from any source other than from the ownership and operation opera-tion of the water system. Section 16. That if any section, paragraph, clause or provision of this Ordinance shall be held invalid in-valid or unenforceable for any reason, the invalidity or unenforceability unen-forceability of such section, paragraph, para-graph, clause or provision shall not affect any of the remaining provisions of this Ordinance. Section 17. That all ordinances, resolutions, and orders, or parts thereof, in conflict with the provisions pro-visions of this Ordinance, are, to the extent of such conflict, hereby here-by repealed. After the bonds authorized by this Ordinance shall have been lisucd, this Ordinance shall be lrrepealable until said bonds and the Interest thereon shall have been fully paid, satisfied and discharged in the manner provided provid-ed herein. NOW. THEREFORE. BE IT FURTHER ORDAINED by. the Mayor and City Council of Cedar Ce-dar City. Iron County, State of Utah, that it is necessary for the immediate preservation of the peace, health and safety of the said City and the inhabitants thereof, that this Ordinance become be-come operative as sewn as legally possible so that the bonds maybe may-be issued to provide funds to pay for the improvements and additions to be made to the water works system of said City, and that an emergency is hereby d dared, and that this Ordinance shall be published in one issue of the Iron County Record, a newspaper published in the City of Cedar City. Iron County, State of Utah, and shall be In force and take effect upon the expiration expira-tion of twenty-one days from and after the date of Its passage, pas-sage, approval and publication, unless within said twenty-one day period a petition, signed by the voters of the City of Cedar City qualified to vote thereon at least equal to fifteen per cent In number of the voters voting for the presiding officers of said City at the last preceding City election and asking that the question of Issuing said bonds for the purpose of defraying the cost of the construction of a reservoir res-ervoir and necessary appurtenances appurten-ances and the purchase of nec-ef.sj.ry nec-ef.sj.ry equipment to Increase the capacity of the municipally owned water works svstem, be suhmltted to the voter's of said City. Is filed with the City Recorder Re-corder In the manner provided by Section 7GA-213 Utah Code Annotated 1943, In which event this ordinance shall not become effective unless a majority of the voters voting upon such question ques-tion at nn election to be called for such purpose shall vote In favor of Issuing said bonds. PASSED AND APPROVED June 22. 1950. L. V. BROADBENT. Mayor. ATTEST: ELLEN A. SIMKINS. City Recorder, (SEAL) |
