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Show OSSIJ-CSNEVA TCS3 TKUTISDAY, JANUARY 27, 1949 IHL'l DIE STATE OF UTAH COUNTY OF UTAH CITY. OF OREM ) ) SS ) The City Council of the City of Orem in the County of Utah and State of Utah met In regul ar session In full conformity with law and the ordinances and rules of said City at the City Hall .within said City, being be-ing the regular meeting place of said City Council at the hour of 8:00 o'clock P.M. on Wednesday Wednes-day the 26th day of January, 1949. On roll call, the following were present: j. W. Gillman Mayor it 1 . ft TontAH PtnnAilmon Trrl T rZZ,ny manufacturer or seller of PhiT Edward Councilman. mchi , other equip- E. H. Johnson, Councilman I . . . aVir vr nurham. Councilman A. A. Richards, Councilman Orland E. Pyne, City Recorder A. A. Richards, Councilman H- V. Wentz, City Attorney, also present-Absent: present-Absent: None. The meeting was called to order or-der by Mayor Gillman. Councilman Council-man Woodruff Jensen introduced introduc-ed the following ordinance which was read in full by the City Recorder and considered by the City Council. AN ORDINANCE AUTHORIZING AUTHORIZ-ING AND PROVIDING FOR THE ISSUANCE OF THE WA TER REVENUE BONDS OF THE CITY OF OREM IN THe works system of the City of Or-AGGREGATE Or-AGGREGATE PRINCIPAL A- em and MOUNT OF $136,000-00 FOR THE PURPOSE OF DEFRAYING DEFRAY-ING IN PART THE COST OF IMPROVING AND REPAIRING REPAIR-ING THE EXISTING WATERWORKS WATER-WORKS SYSTEM OF THE CITY OF OREM; PROVIDING FOR THE PUBLIC SALE OF SAID BONDS; PRESCRIBING 'THE FORM OF SAID BONDS AND OTHER DETAILS IN CONNECTION THEREWITH; PROVIDING FOR THE COLLECTION COLL-ECTION AND DISPOSITION OF THE REVENUES TO BE DERIVED FROM SAID SYSTEM; SY-STEM; MAKING OTHER PROVISIONS PRO-VISIONS WITH RESPECT TO THE OPERATION OF SAID SYSTEM AND THE ISSUANCE OF SAID BONDS; PROVIDING FOR THE PAYMENT , OF BOTH THE PRINCIPAL OF ,AND THE INTEREST ON SAID BONDS PAYABLE SOL-ZELY SOL-ZELY FROM THE NET REVENUES REVEN-UES DERIVED FROM THE OPERATION OP-ERATION OF THE WATERWORKS WATER-WORKS SYSTEM; DECLAR- nn FOR THE SAKE OF THEIR HEALTH BUILD OREM ING AN EMERGENCY AND REPEALING ALL ORDINANCES ORDINAN-CES IN CONFLICT HEREWITH HERE-WITH WHEREAS, the City of Orem in the County of Utah and State of Utah is an incorporated city duly organized and existing under un-der the laws of the State of Utah Ut-ah and now operates a water system sy-stem for the benefit of the city and its inhabitants; and WHEREAS, the City Council has caused a comprehensive estimate es-timate to be made of the cost of improving and repairing said system and of the net operating revenues derived and to be de- iv'ZC;'0:"' engineer approved by the State Engineer of the State of Utah, and having no connection with ' .TT improvments and repairs or in the .installation thereof and, further, having no connection with any person or corporation engaged in the same business; and WHEREAS, at an election duly called and held in said City on the 7th day of December, Decem-ber, 1948 there was submitted to the electors qualified to vote thereon the question of issuing the water revenue bonds of the City of Orem in the aggregate principal amount of $136,000 00 for the purpose of defraying in part the cost of improving and repairing the existing water- WHEREAS more than a majority of such qualified elect - J r . . . ors voting on said question vot ed in favor of the issuance of said bonds; and WHEREAS, the- City Council has determined and does hereby determine that sara" bonds in the amount of $136,000 00 shoulc be publicly sold in order to provide pro-vide funds for the purpose of defraying in part the cost of improving im-proving and repairing the existing exist-ing waterworks system of the City; and WHEREAS, the City of Orem has never pledged the revenues of its waterworks system to the payment of any of its obligations with the result that the net revenues re-venues derived from the operation operat-ion of said waterworks system may now be pledged lawfully and irrevocably to the payment of revenue bonds issued for the purposes hereinbefore recited. NOW, THEREFORE, BE IT AND IT IS HEREBY ORDAIN- Call 0559-J1 n ED BY THE CITY COUNCIL OF THE CITY OF OREM IN THE COUNTY OF UTAH AND STATE OF UTAH Section 1. That all action hereinbefore taken by the City Council and the officers of the City of Orem directed toward the improvement and repair of the existing waterworks system of the City of Orem and the authorization of its water revenue rev-enue bonds in the amount of $136,000.00 not inconsistent with the provisions of this ordinance or-dinance be and the same is hereby ratified, approved and confirmed. Section 2. That the, report prepared pre-pared and submitted by Leonard Leon-ard V. Beckman, consulting engineer, en-gineer, now on file in the office of the City Recorder be and the same is hereby approved. Section 3. That a brief description des-cription of the contemplated improvement is as follows: The improvement, enlarge- ment. extension and repair oi the municipal waterworks sy- principal amount thereof, stem by the acquisition of If the option to redeem said additional storage and purifi-i bonds is exercised on July 1, cation facilities and by the 1967 or on any interest pay-imnrovement. pay-imnrovement. extension and ment date thereafter to and in- repair of the distribution sy- stem. Section 4. That the estimated cost of such improvement is $211,000.00. Section 5. That in order to provide funds to meet the cost of improving, enlarging, ex tending and there shall repairing the mu - be and there are hereby authorized to be issued bonds of the City of Orem to be own as "Cit oforem Water FM7pnlIP Rr.ri.-1a Qar 1 QAQ FiMpnllP RnnHs Rnripc 1 QAQ in the aggregate principal a-mount a-mount of $136,000. which bonds shall be payable soley from the net. revenues derived from the waterworks system and not otherwise. Such net revenuep shall be payable solely from the revenues of the municipal wat- er system after deductions on ly for the cost of operating and expenses of any betterments or replacements necerrary to keep the system in good repair. Section 6. That said bonds shall be dated as of January 1, 1949, shall consist of 136 bonds in the denomination of $1,000.- 00 each, shall be numbered from 1 to 136, both inclusive, shall bear interest at the rate of three and one-quarter per centum per annum, payable semiannually on the first days of January and July in each year and shall mature mat-ure serially in regular numerical numer-ical order $5,000 00 on the first OREM'S mova U3C UTAH'S NEWEST AND MOST 845 South State Street PATROIIIZE YOUR LOCAL DAIRY days of January in the yean 1951 to 1976, both Inclusive, and $6,000 00 on the first day of January, 1977. Bonds numbered 31 to 138, both inclusive, maturing on and January 1, 1957, are subject to redemption in inverse numerical numer-ical order at the option of the City on January 1, 1956, or on any interest payment date thereafter there-after prior to maturity at a price equal to the principal a-mount a-mount thereof with accrued interest in-terest to the redemption date together with a premium in accordance with the following: If the option to redeem said bonds is exercised on January 1, 1956 or on any interest payment date thereafter to and including January 1, 1961, at a premium of 4 percent of the principal a-mount a-mount thereof. If the option to redeem said bonds is exercised on July 1, 1961 or on any interest payment pay-ment date thereafter to and including in-cluding January 1. 1967, at a premium of 3 percent of the 'rlndinf Jlllv 1 197fi at a Drfr mium of 2 percent of the principal prin-cipal amount thereof. Notice of redemption shall be given by the Treasurer of the City of Orem in the name of said City by publication of such notice at least once in each cal endar week on , week for at least four successive weeks Drior to the redemption date in a newspaper of general circulation in the City of Orem and a copy of sucn notice shall be sent by registered mail at least thirty days prior to the redemption re-demption date to Boettcher and Company, 8 2 8 Seventeenth Street, Denver, Colorado. 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 shall .further state that on demption date there sucn re- will be- come and be due and payable upon each bond so to be redeemed re-deemed at the office of the City Treasurer, Orem, Utah, the principal amount thereof with accrued interest to the redemption redempt-ion date, together with the stip ulated premium and that from and after such date interest will cease to accrue. Notice having been given in thejnanner here inbefore provided, the bond oi bonds so called for redemption shall become due ana payable on the redemption date so des- OWN wow MODERN DAIRY PLANT Orem PHONE 0559 - Jl FOR HOME DELIVERY ON THE FOLLOWING DAIRY PRODUCTS PROCESSED IN OREM: GRADE A MILK BUTTERMILK ' WHIPPING CREAM COFFEE CREAM CHOCOLATE MILK CHEESE ORANGE DRINK EGGS COTTAGE CHEESE BUTTER ' - ' ignated and upon presentation thereof at the office of the City . Treasurer, Orem, Utah, together with all appurtenant coupons maturing subsequent to the redemption re-demption date the City of Orem will pay the bond or bonds so called for redemption. Section 7. The reveune bonds hereby authorized shall be fully ful-ly -negotiable and shall have all the qualities of negoltable paper pap-er and the holder or holders thereof shall possess all rights enjoyed by the holders of negotiable neg-otiable instruments under the provisions of the Negotiable Instruments In-struments Law. Section 8. The interest accruing accru-ing on said bonds shall be payable pay-able on the first day of July 1949 and semiannually thereafter thereaf-ter on the first days of July and January in each year until the respective maturity dates of said bonds upon presentation and surrender of the annexed interest coupons as they severally sever-ally become due and thereafter at the same rate until the principal princ-ipal of said bonds is paid in full, both prncipal and interest being payable in lawful money of the United States of America without deduction for exchange or collection charges at the Farmers Far-mers and Merchants Bank, Provo, Utah. The City of Orem covenants and agrees to arrange for the transfer of the funds necessary to pay the interest on and the principal of said bonds at said bank in accordance with . , . 4i,.this Section 8. Salu" bonds shall j any day of the . . . . .1 " - signed in the name of the City of Orem bv the mavor and at-- of Orem by the mayor and at ed by the City Recorder with the seal of the City of Orem affixeo thereto and the interest coupons thereto attached shall be authenticated authen-ticated with the facsimile signature sign-ature of the City Treasurer. All of said bonds, together with the interest accruing thereon, shall be payable solely from the net revenues derived from the operation oper-ation of the waterworks system sy-stem and not otherwise. Section 9- That said bonds and the coupons thereto attached shall be in substantially the following fol-lowing form: (Form of Bond) UNITED STATES OF AMERICA STATE OF UTAH COUNTY OF UTAH City Of Orem Water Revenue Bonds Series 1949 r ' ' No - " $1,000 00 The City of Orem in the Coun- ty of Utah and State ot Jtah for value received hereby pro- mises to pay upon the present- atinn nnH snrrnHpr of this bond h haarAP herent eniplv from th snprial fund nrovided there - fnr D hproinafter set forth or. the first day' of January, 19 i.mnl .iit ftf OTSJF. THOTT5AMn nDT.T.ARS in nav M enpoial fnnd in- 4 i tv, f .hrw a-r r,er nh,m ner o r,nvahi semiannually i t to.. v.a July in each year, upon present- ation and surrender of the ann- exed interest coupons as they severally become due. If upon presentation at maturity, pay- ment of this bond is not made as herein provided, interest, shall continue at the same rate until the principal thereof is paid in full. Both principal and interest are payable in lawful money of the United States of America without deduction for exchange or collection charges at the Farmers Far-mers and Merchants Bank, Provo, Utah. I (This bond is subject to re-' demption at the option of the r-itv nf Drpm nn Januarv 1. 1956,, or on any interest pay- mnt dafp thprpafter at a Drice equal to the principal amount thereof with accrued interest to the redemption date and the IUI money oi me unueo. oiaies premium specified in the ordin-f America, without deduction ance authorizing - its issuance. for exchange or collection char-Redemption char-Redemption shall be made upon es- at the Farmers and Mer- not less than thirty days' prior notice hv nublication in a news- paper of general circulation in'solely t secured by a the City of Orem in the manner Pdge of the net fevenues of nrf unon thp conditions rovid- the municipal 'waterworks sy- ed in the ordinance authorizing the issuance of this bond.) ; This bond is one of an author- ized issue in the aggregate prin- cipal of $136,000,00 issued for the purpose of defraying In part the cost of improving, enlarging, extending and repairing the municipal waterworks system of the Citv of Orem. all in full conformity with the constitution and laws of the State of Utah and an ordinance of the City duly enacted and adopted prior to the issuance hereof. The issu- ance of this bond has further been authorized by the electors j of the City of Orem qualified to vote on the question at a special election held in said City on the 7th day of December, 1948. This bond is issued under the pro- visions of Sections 76A-2-1 to corder be directed to have pub-76A-2-23. Utah Code Annotated, lished a notice of sale of said and all other laws amenaatory thereof and supplemental there- to and it does not constitute an eral circulation in the City of indebtedness of the City of Or- Orem, at least ten days prior to em within any state constitut- the sale date, which notice shall ional provision or statutory Urn- be in substantially the follow-itation. follow-itation. ing form, to-wit: This bond is one of an issue of bonds payable, both as to principal and interest, solely from and secured by a pledge of the net revenues derived from the operation of the municipal mun-icipal waterworks system, said net revenues bemg def imal as the gross revenues of said system sy-stem after deductions only for the cost of operating and maintaining main-taining the system and the expenses ex-penses of any betterments or replacements re-placements necessary to keep the system in good repair. It is. hereby covenanted and agreed that the City will charge rates for water service supplied by and through said system which will be sufficient at all times until this bond and the coupons hereto attached are fully paid and discharged to produce net revenues from said system sufficient suf-ficient to pay the interest on and the principal of this bond as and when the same become due and payable, but such rates shall not be in excess of a reasonable reas-onable rate for the service rendered. ren-dered. This bond is subject to the condition, and every holder hereof by accepting the same a-grees a-grees 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 cireum- (stances of any negotiable instru- ' M to b (b) lhe , ,. . , . . . I ouiifjor ana any agent oi me 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 principal of and the interest on this bond shall be paid, and this bond and each of the coupons appertaining thereto are transferable, free from and without regard to any equities between the obligor and the original or any intermediate holder hereof, or any setoffs or cross-claims; and (d) the surren- der to the obligor or any agent of the obligor of this bond and eaeh of the coupons shall be a zood discharge to the obligor for the Same. It is hereby certified and-war ' ranted that all of the require- rnents of law have been fully (complied with by the proper of- IU--CIS Ul UIC SrtlU VUV ill UIC issue of this bond. IN WITNESS WHEREOF, the City of Orem has caused this bond to be signed by its Mayor, sealed with its corporate seal attested by its City Recorder f nd P" hf rft0 ne"d Jo be authenticated with the facsimile signature of "a City Treasurer, all as of the first day of January, 1949. (Do Not sign) Mayor SEAL (Do not sign) City Recorder (To be inserted in bonds maturing on January 1, 1957 and thereafter). (FORM OF COUPON) No $1625 n the first day of January, -uiy uumess me Dona " wnicn mis coupon is auacnea "as Deen cauea iur prior reaem- Pon; me cny oi urem in xne County of Utah and State of Ulan wl" Pay Rearer in iaw- JS T TEEN AND 25100 DOLLARS stem, being six months' interest ,n a Water Revenue Bond, aeries i49, aatea January 1, 1949. This coupon is issued under the provisions of Sections 76A-2- 1 to 76A-2-23, Utah Code Annotated, iuJ, ana an omer laws amendatory tnereoi and supplemental thereto and it does not constitute an inaeDieaness of the City within any constlt- utional provision or statutory limitation, (SEAL) (facsimile signature) City Treasurer (To be inserted in coupons maturing after January 1, 1956, attached to bonds numbered 31 to 136 inclusive.) Section 10. That the City Re bonds in the Orem-Geheva Times, a newspaper having gen- Public Notice is hereby given that the City of Orem, Utah County, Utah will on or before 2 PM February 8, 1949 at the City Hall, Orem, Utah, receive sealed bids for the purchase of City of Orem Water Revenue Bonds, Series 1949 in the aggregate agg-regate principal amount of $136,-000. $136,-000. No discount bid will be accepted. ac-cepted. Bids must be for par or b etter. Said bonds shall be in the denomination de-nomination of $1,080 00 each, numbered consecutively from 1 to 136, both inclusive, shall bear date as of the first day of January, A. D. 1949, shall bear interest at a rate of three and one-quarter per centum per annum an-num payable semiannually on the first days of January and July in each year, both principal princi-pal and interest being payable in lawful money of the United States of America at the Farmers Farm-ers and Merchants Bank, Provo, Utah. Said bonds shall mature serially $5,000.00 on January 1 in the years 1951 to 1976, both inclusive, and $6,000 on Janu-'ary Janu-'ary 1, 1977. Bonds numbered ,31 to 136, both inclusive, mat uring on and after January 1, 1957,shailbesubjecttoredemp - at the opfion of the City of Or- em on January 1, 1958 or any merest payment date thereat- ter upon the payment of the principal amount thereof, together to-gether with a premium in ac cordance with the following: If the option to redeem said bonds is exercised on Jan uary 1, 1956 or on any interest inter-est payment date thereafter to and including January 1, 1961, at a premium of 4 per cent of the principal amount thereof. If the option to redeem said bonds is exercised on July 1, Payments hereinabove required 1961 or on any interest pay! to be made have been made shall merit date theroafter to and.be either used including January 1, 1967, at a premium of 3 percent of the principal amount thereof. If the option to redeem said bonds is exercised on July 1, 1967 or on any interest payment pay-ment date thereafter to and including July 1, 1976 at a premium of 2 percent of the principal amount thereof. Said bonds shall be payable both as to principal and interest solely from and secured by a pledge of the net revenues of the municipal waterworks system, sys-tem, said net revenues being defined as the gross revenues oi said system after deductions only on-ly for the cost of operating and maintaining the system and the expenses of any betterments or replacements necessary to keep the system in good repair. All bids shall be accompanied by Cashier s Check or properly certified check payable to the Treasurer of the City of Orem in the amount of 5 percent of the face of the bonds- The successful succ-essful bidder will be required to accept delivery of 70 bonds as soon as ready for delivery to the purchaser and 66 bonds on March 15, 1949. The legality of the bonds will be approved by Messrs. Pershing, Persh-ing, Bosworth, Dick and Dawson, Daw-son, attorneys at law, Denver, Colorado, whose opinion, toget- her with the printed bonds and a certified transcript of the le-,in gal proceedings will be furnish- ed the purchaser without charge o,k J! V V y ,7 this 26th day of January, 1949. rlK l City Recorder - Orem . . .. .. . A copy of said notice prior ' vv . vi..v.n, ' forwarded to the Commission of Finance. 7u u , il u after the delivery of the bonds issued under the provisions of, Section 11. That from and this ordinance, all income ana revenue of the water system shall be set aside into a separate k!1T1vJ!. aa ..a "7 " ,7, ded, shall be used in maintain- ind PrPthP naJnt Z'T and after the payment of the reasonable, proper and necess- ary maintenance and opera ion expenses of the system, includ- ing the expenses of any better - men s or replacements necess- ary to keep the system in good repair .nd working order, shall, Z l """"" , under, and there shall be char-ided, char-ided, be used to pay the princi- aaA , 1 n.,. Zii C' .j There shall be and there is hereby created, and there shall maintained a special fund to SJ " e '25.55 p.mT Ef MnV 1 eZti Fund- into which there shall be set aside and paid from the earnings of the system (after the payment of the necessary expenses of maintaining and op- erating the system as in the last auuvc lMU..K.:.pu y.uv.ueu, ut. portion of said revenues as will be sufficient to pay the interest inter-est on and principal of the bonds herein authorized as the same become due, and in addit ion thereto all revenues of the system remaining in each year after the payments hereinabove required to be made from such revenues have been made, which additional payments shall in each year be in an amount e- qual to. not less than fifty per cent (50 percent) of the amount otherwise required to te paid into such fund in such year, and which additional payments are to be continued to be made into said fund until there shall be in said fund an amount sufficient suffic-ient to pay all interest and principal prin-cipal falling due on or before the next maturity date of any of said bonds, and a reserve fund in the amount of $10,000. This $10,000 so accumulated as a reserve re-serve shall be maintained and used solely for the payment of principal or interest falling due at any time as to which there would otherwise be a default. If at any time it shall become necessary to use the money in said reserve to pay principal or interest, the money so used shall be replaced from the first revenues rev-enues thereafter available and not required to be used for maintenance and operation or for current requirements for principal and interest. Such payments into such sinking fund shall be made in equal monthly installments on the first day of each month. Such sinking fund shall be used solely and and ig fa , the interest PonPand fj , of the bonds herei aPuthor. cd to be issUd Tf K . .. said sinking fund the full amounts am-ounts above stipulated, then an amount equivalent to such deficiency de-ficiency shall be paid into said sinking fund from the revenues available for such payment, as soon as available, and in addition addit-ion to the amount otherwise required re-quired to be so set apart and paid into said sinking fund. The revenues of the system j remaining each year after all a. In making such improvements improve-ments and extensions to the system as may be required, or b- May be applied to retiring in advance of maturity bonds herein authorized, eitller through thr-ough the purchase thereof on the open market at the best prices obtainable (but in no e-vent e-vent at prices greater than the price at which any of the bonds may be then subject to redemption), redemp-tion), or through the calling of redeemable bonds for redemption redemp-tion on the next interest pay' ment date, or c. May be used as the City Improvements and extensions to the system shall be either held in a separate account in the depository dep-ository bank and adequately secured se-cured by collateral or shall in the discretion of the City Council Coun-cil be invested in direct oblig-atons oblig-atons of the United States of America- Whenever the amount in said sinking fund is equal to the entire amount of the Interest Inter-est and principal that will become be-come due on all the bonds issued is-sued hereunder then outstanding, outstand-ing, no further payments need be made into said sinking fund, unless necessary to replace money mon-ey lost or diverted. All accrued interest received from the purchaser pur-chaser of the bonds at the time of the delivery thereof shall be paid into said sinking fund. All money held in said sink- nH .fcnii k rf.it Farrl1pr. an i.wKHT,f r,v itl Prov0i utah( and all guch de. Psits snaI1 made and secured a3 provided by the pprtinent laws of the State of Utah. s,ction R xhat 0rem City hereby covenants and ajrees nrh Bn, , the bonds issued hereunder: a. That while the bonds au thorized herein or any of them main outstanding and unpaid, the rates for watef andwa: ter sprvi minn,pH hv . tern to said city and to its in " '"j b j a habitants, and to fill consumers within or without the bound- city, shall be reas- i0 & Just, taking into ac count and onslderat,on CSt 8"d ValUe f the cost of maintajnIng and op tlng me system, and t p and nec'essary allowan. ces for the depreciatioa taereot ' and the &mo necesia for ithe retirement of all bonds, and (u apn,in- ZZ . 7. "iT d, "may" issuVd "he 'including said city, such rates Br,H .. v.. -j. quate to meet the requirementg of this and the pTAl e tion reof, all of which rS- enues' deluding those received from cit shal to d,8trIbutl to tne ent of the cost of openJnd maintaining the t nd payment of rf , terest on thbonds herein auth- orized as hereinbefore provided; b. That the city will maintain main-tain the system in good shape dition and operate the same in an efficient manner and at reasonable rea-sonable cost; c That the city covenants and agrees that so long as any of the bonds remain outstanding proper prop-er books of record and account will be kept by the city, separ- Continued on back page |