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HomeMy WebLinkAbout06963(SUBSTITUTED COPY) 4/11/2003 ORDINANCE NO. 6963 AN ORDINANCE RECOGNIZING AND CONFIRMING THE CITY OF PUEBLO, COLORADO'S WASTEWATER SEWER ENTERPRISE AS AN ENTERPRISE; AUTHORIZING THE ISSUANCE BY THE CITY'S SEWER ENTERPRISE OF A GOVERNMENTAL AGENCY BOND, SERIES 2003, IN A MAXIMUM PRINCIPAL AMOUNT OF $8,500,000, FOR THE PURPOSES OF FINANCING THE REPLACEMENT OF AN INTERCEPTOR SEWER LINE ALONG THE ARKANSAS RIVER, TOGETHER WITH CONNECTING SEWER LINES AND A MAINTENANCE ROAD, PAYING THE COSTS OF ISSUING THE SERIES 2003 BOND; PRESCRIBING THE FORM, TERMS AND CONDITIONS OF THE SERIES 2003 BOND; PROVIDING FOR THE SALE OF THE SERIES 2003 BOND; PROVIDING FOR THE APPLICATION OF THE NET PLEDGED REVENUES OF THE SEWER ENTERPRISE TO PAY THE PRINCIPAL OF AND INTEREST AND PREMIUM, IF ANY, ON THE SERIES 2003 BOND; AND PRESCRIBING OTHER DETAILS IN CONNECTION THEREWITH WHEREAS, the City of Pueblo, in the County of Pueblo and State of Colorado (the "City"), is a municipal corporation duly organized and existing as a home rule city pursuant to Article XX of the Constitution of the State of Colorado (the "State ") and the home rule charter of the City (the "Charter"); and WHEREAS, under the Charter, the City is possessed of all powers which are necessary, requisite or proper for the government and administration of its local and municipal affairs, all powers which are granted to home rule municipalities by the Colorado Constitution, and all rights and powers that now or hereafter may be granted to municipalities by the laws of the State; and WHEREAS, the City owns and operates a municipal sanitary sewer system, as more fully defined herein (the "Sewer Enterprise "); and WHEREAS, the legislative powers of the City are vested in a board of council members, also known as the city council (the "City Council "), which also operates as the governing body of the Sewer Enterprise; and WHEREAS, the City Council, sitting as the governing body of the Sewer Enterprise, has determined that it is necessary for the efficient and proper management of the Sewer Enterprise and is in the best interest of the users of the Sewer Enterprise that there be authorized and issued bonds of the Sewer Enterprise for the purpose of financing the replacement of an interceptor sewer line along the Arkansas River, together with certain connecting sewer feeder lines, and the construction of a maintenance road, and certain related renovations and upgrades (collectively, the "Project") and for paying the costs of issuing such bonds; and WHEREAS, the City Council has determined that it is in the best interest of the users of the Sewer Enterprise that the payment of such bonds be secured by the Net Pledged Revenues (as defined herein) of the Sewer Enterprise; and WHEREAS, the City Council, acting by and through the Sewer Enterprise, issued $11,100,000 aggregate principal amount of its Sewer Refunding Revenue Bonds, Series 1996, of which $3,550,000 remains outstanding (the "Series 1996 Bonds "); and WHEREAS, the Sewer Enterprise will defease the Series 1996 Bonds prior to issuing the Series 2003 Bond (as defined herein); and WHEREAS, except with respect to the Series 1996 Bonds, the City Council has never pledged, nor in any way hypothecated, revenues derived and to be derived from the operation of the Sewer Enterprise to the payment of any bonds or for any other purpose (excluding proceedings authorizing the issuance of bonds which have heretofore been paid in full, or for which provision for the payment in full has been made), and the Series 1996 Bonds will be defeased prior to the issuance by the Sewer Enterprise of its new bond, with the result that the Net Pledged Revenues may now be pledged lawfully and irrevocably for payment of the Series 2003 Bond herein authorized and any Parity Lien Bonds (as defined herein); and WHEREAS, to finance the estimated costs of the Project, the Sewer Enterprise has made an application to the Colorado Water Resources and Power Development Authority (the "Authority°), for a loan, which the Authority has conditionally accepted, and therefore the Sewer Enterprise has determined to enter into a loan agreement (the "Loan Agreement") with the Authority, pursuant to which the Authority shall loan the Sewer Enterprise an amount not to exceed $8,500,000(the "Loan"); and WHEREAS, the Sewer Enterprise's repayment obligations under the Loan Agreement shall be evidenced by a Governmental Agency Bond, Series 2003 (the "Series 2003 Bond ") to be issued by the Sewer Enterprise to the Authority, which shall be payable solely from and secured by a pledge of and an irrevocable and nonexclusive lien on the Net Pledged Revenues of the Sewer Enterprise; and WHEREAS, Article X, Section 20 of the Colorado Constitution ( "Amendment One ") requires that districts (as defined in Amendment One) not issue bonded debt without prior voter approval unless the issuer is an "Enterprise" as defined in Amendment One; and WHEREAS, the Sewer Enterprise constitutes a government -owned business authorized to issue its own revenue bonds and receives under 10% of its annual revenue in grants from all Colorado state and local governments, including without limitation the City, and therefore constitutes an "Enterprise" within the meaning of Amendment One; and WHEREAS, the City has the power as a home rule city under Article XX of the Colorado Constitution and the Charter to issue the Series 2003 Bond; and WHEREAS, Article 57 of Title 11, Colorado Revised Statutes (the "Supplemental Public Securities Act") provides supplemental procedures for the issuance of bonds, and the City Council has elected to have the provisions of the Supplemental Securities Act apply to the issuance of the Series 2003 Bond; and WHEREAS, there has been presented to the City Council at this meeting a proposed form of the Loan Agreement; now, therefore BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO SECTION 1 General. Except to the extent inconsistent with this Ordinance, all action heretofore taken by the City and the Sewer Enterprise and the officials thereof directed toward accomplishing the Project and toward the issuance and sale of the Series 2003 Bond to the Authority is hereby ratified, approved and confirmed. The City Council, after reviewing all pertinent information pertaining to the municipal wastewater system, hereby again recognizes and confirms the status of the wastewater system as an enterprise. SECTION 2 Definitions. The definitions in this Section 2 and in the Recitals of this Ordinance are applicable for all purposes of this Ordinance and of any supplement or amendment hereto, except where the context by clear implication requires otherwise. "Code" means the Internal Revenue Code of 1986, as amended, and all regulations promulgated thereunder. "Debt Service Account" means the Debt Service Account established pursuant to Section 10 hereof. "Gross Revenues" means all income and revenues derived directly or indirectly from the operation and use of and otherwise pertaining to the Sewer Enterprise, or any part thereof, whether resulting from repairs, enlargements, extensions, betterments or other improvements to the Sewer Enterprise, or otherwise, including without limitation: (a) All fees, rates and other charges for the use of the Sewer Enterprise, or for any service rendered by the Sewer Enterprise in its operations, directly or indirectly, the availability of any such service, or the sale or other disposal of any commodities derived therefrom, but: W excluding any moneys borrowed and used for the acquisition of capital improvements; (ii) excluding any moneys received as grants, appropriations or gifts from the Federal government, the State or other sources, the use of which is limited or restricted by the grantor or donor to the construction of capital improvements for the Sewer Enterprise or for other purposes resulting in the general unavailability thereof, except to the extent any such moneys shall be received as payments for the use of the Sewer Enterprise, services rendered thereby, the availability of any such service, or the disposal of any commodities therefrom; (iii) excluding moneys held in any escrow or otherwise deposited by third parties for extensions, modifications or upgrading of the sanitary sewer system; (iv) excluding any money and securities, and interest and other gain from investment of such money and from such securities in any refunding fund or escrow account or similar account pledged to the payment of any bonds or other obligations therein specified; and (v) excluding connection fees deposited into the Sanitary Sewer Collection System Improvement Fund and plant investment fees deposited into the Treatment Plant Investment Fund; (b) all income or other gain from any investment (except as set forth in (a)(iv) above); (c) all income and revenues derived from the operation of any other utility or other income - producing facilities added to the Sewer Enterprise and to which the pledge and lien herein provided are extended by ordinance adopted by the City Council or the qualified electors of the City or by Charter amendment adopted by such electors; and (d) any unrestricted cash and investments in the Revenue Account. "Net Pledged Revenues" means the Gross Revenues of the Sewer Enterprise remaining after the payment of the Operation and Maintenance Expenses of the Sewer Enterprise. "Operation and Maintenance Expenses" or any phrase of similar import, means all reasonable and necessary current expenses of the Sewer Enterprise, paid or accrued, for operating and maintaining the Sewer Enterprise or any component division or other part thereof, or of any other designated facilities in connection with which such term is used; and the term includes, without limitation: (a) engineering, auditing, reporting, legal and other overhead expenses directly related and reasonably allocable to the administration, operation and maintenance of the Sewer Enterprise; (b) fidelity bond premiums and property and liability insurance premiums pertaining to the Sewer Enterprise, or a reasonably allocable share of a premium of any blanket bond or policy pertaining to the Sewer Enterprise; (c) payments to pension, retirement, health and hospitalization funds, other insurance, and to any self - insurance fund as insurance premiums not in excess of such premiums which would otherwise be required for such insurance; (d) any assessments, excise taxes or other charges which may be lawfully imposed on the City, the Sewer Enterprise, the revenues therefrom, or the City income from or operations of any properties under its control and pertaining to the Sewer Enterprise, or any privilege in connection with the Sewer Enterprise or this operation (but no payments made in lieu of taxes or any general ad valorem taxes); (e) the reasonable charges of any paying agent and any other depository bank pertaining to any Parity Lien Bonds and any other securities payable from the Net Pledged Revenues or otherwise pertaining to the Sewer Enterprise, except to the extent paid from the proceeds of any Parity Lien Bonds or other such securities; (f) contractual services, professional services, salaries, other administrative expenses, and costs of materials, supplies, repairs and labor, pertaining to the Sewer Enterprise or to the issuance of any Parity Lien Bonds or any other securities relating to the Sewer Enterprise, including, without limitation, the expenses and compensation of any trustee, receiver, or other fiduciary, except to the extent paid from the proceeds of any Parity Lien Bonds or other such securities; (g) the costs incurred by the Sewer Enterprise in the collection and any refunds of all or any part of the Gross Revenues; (h) any costs of utility services furnished to the Sewer Enterprise by the City or otherwise; and (i) all other administrative, general and commercial expenses pertaining to the Sewer Enterprise, but (i) excluding any allowance for depreciation; (ii) excluding any costs of extensions, enlargements, betterments and other improvements (or any combination thereof); (iii) excluding any reserves for major capital replacements (other than normal repairs); (iv) excluding any reserves for operation, maintenance or repair of the Sewer Enterprise; (v) excluding any allowance for the redemption of any bond or other security evidencing a loan, or the payment of any interest thereon, or any prior redemption premium due in connection therewith, or any reserve therefor; and (vi) excluding any liabilities incurred in the acquisition or improvement of any properties comprising any project or any existing facilities (or any combination thereof) pertaining to the Sewer Enterprise. "Outstanding" means, when used with reference to bonds as of any particular date, all bonds payable from the Net Pledged Revenues of the Sewer Enterprise in any manner theretofore and thereupon being executed and delivered: (a) except any bond canceled by the Sewer Enterprise, by the Paying Agent, or otherwise on the Sewer Enterprise's behalf, at or before said date; (b) except any bond for the payment or the redemption of which moneys at least equal to the principal amount of, any prior redemption premium due in connection with, and the interest on the bond to the date of maturity or the prior redemption date, shall have theretofore been deposited with a commercial bank in escrow or in trust for that purpose, as provided in Section 13 hereof; and (c) except any bond in lieu of or in substitution for which another bond shall have been executed and delivered pursuant to this Ordinance. "Parity Lien Bonds° means the Series 2003 Bond and all other bonds or other obligations payable from Net Pledged Revenues on a parity with the Series 2003 Bond. "Revenue Account means the Revenue Account established pursuant to Section 10 hereof. ,, State" means the State of Colorado. "Sewer Enterprise" means the City's municipal sanitary sewer system, consisting of 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 Sewer Enterprise of the City, and in any way pertaining thereto, whether or not located within or without or both within and without the boundaries of the City; and such defined term includes any other utility or other income- producing facilities added to the Sewer Enterprise and to which the lien and pledge herein provided or provided in the Loan Agreement are extended by ordinance adopted by the City Council or the qualified electors of the City or by Charter amendment adopted by such electors. SECTION 3 Issuance of Series 2003 Bond. For the purpose of providing moneys with which to finance the Project and pay the costs of issuance of the Series 2003 Bond, the Sewer Enterprise shall issue its Series 2003 Bond in an aggregate principal amount not to exceed $8,500,000. The Series 2003 Bond shall be payable as to both principal and interest solely out of Net Pledged Revenues derived from the operation and use of the Sewer Enterprise. SECTION 4 Series 2003 Bond Details. (a) The Series 2003 Bond shall be dated and shall be subject to repayment in the amounts and on the dates, and shall be subject to prior redemption as set forth in the Loan Agreement and the Series 2003 Bond. The maximum net effective interest rate authorized for the Series 2003 Bond is 6.00% per annum (or in the event that a late charge is imposed pursuant to Section 3.03 of the Loan Agreement, a maximum net effective interest rate equal to the greater of 12.0% per annum or the prime rate plus 0.5 %, not to exceed the maximum rate permitted by law), and the actual net effective interest rate of the Series 2003 Bond shall not exceed such rate. The final principal amount, Series 2003 Bond interest rate, effective Series 2003 Bond yield, and payment schedule for the Series 2003 Bond shall be set forth in a certificate to be executed on behalf of the Sewer Enterprise by the President or Vice President of the City Council, as the Sewer Enterprise's Agent. The President or Vice President shall execute and deliver the Series 2003 Bond to the Authority as evidence of the Loan Repayments (as defined in the Loan Agreement). The actual Loan Repayments are (or will be) attached to the Loan Agreement and shall be an integral part of this Ordinance. The Series 2003 Bond shall be substantially in the form set forth as Exhibit D to the Loan Agreement. (b) The Series 2003 Bond shall not constitute a debt or other indebtedness or multi - fiscal year direct or indirect debt or other financial obligation of the City within the meaning of any constitution, charter or statutory provision or limitation; the Series 2003 Bond shall not be payable from the proceeds of general property taxes; and the Series 2003 Bond shall not be considered or held to be general obligations of the City. The Series 2003 Bond is a special revenue obligation of the Sewer Enterprise, payable and collectible solely out of and secured by a pledge of the Net Pledged Revenues from the Sewer Enterprise. SECTION 5 Delivery of Series 2003 Bond. Upon the execution of the Series 2003 Bond, the Sewer Enterprise shall deliver it to the Authority against payment of the purchase price. The proceeds of the Series 2003 Bond shall be used exclusively for payment of the cost of the Project and the costs of issuing the Series 2003 Bond. SECTION 6 The Loan Agreement. The form of Loan Agreement presented at this meeting has been reviewed and discussed by the City Council, the Sewer Enterprise's attorney and staff members in attendance. The President or Vice President of the City Council and the City Clerk are hereby authorized and directed to execute and deliver the Loan Agreement on behalf of the Sewer Enterprise with whatever changes are approved by the Sewer Enterprise's attorney and the President or Vice President; provided, that such changes shall not violate any of the provisions or conditions of this Ordinance. The execution by the President or Vice President and City Clerk of the Loan Agreement shall be deemed to show approval of any changes. After execution of the Loan Agreement, the Sewer Enterprise shall perform its obligations under the Loan Agreement in a timely fashion. SECTION 7 Pledge and Application of Net Pledged Revenues. (a) The Sewer Enterprise hereby irrevocably (but not exclusively) pledges the Net Pledged Revenues of the Sewer Enterprise to pay the principal of and interest on the Series 2003 Bond. The Sewer Enterprise hereby agrees to fix annually and to maintain rates and charges for wastewater services furnished by the Sewer Enterprise which, together with moneys on hand and available therefor, will be sufficient to pay operation and maintenance expenses of the Sewer Enterprise and the principal of, premium, if any, and interest on all Parity Lien Bonds, including the Series 2003 Bond, and other obligations of the Sewer Enterprise, as they respectively become due, including the requirements of the Loan Agreement. (b) The Sewer Enterprise agrees to apply the Net Pledged Revenues monthly as set forth in Section 11 hereof and in the Loan Agreement. (c) The creation, perfection, enforcement and priority of the pledge of the Net Pledged Revenues to secure and pay the Series 2003 Bond and any other Parity Lien Bonds as provided herein shall be governed by Section 11 -57 -208 of the Supplemental Public Securities Act and this Ordinance. The revenues pledged for the payment of the Series 2003 Bond and any other Parity Lien Bonds, as received by or otherwise credited to the Sewer Enterprise, shall immediately be subject to the lien of such pledge without any physical delivery, filing or further act. The lien of such pledge on the revenues pledged for payment of the Series 2003 Bond and any other Parity Lien Bonds and the obligation to perform the contractual provisions made herein shall have priority over any or all other obligations and liabilities of the Sewer Enterprise. The lien of such pledge shall be valid, binding and enforceable as against all persons having claims of any kind in tort, contract, or otherwise against the Sewer Enterprise and the City irrespective of whether such persons have notice of such liens. SECTION 8 Covenants. The Sewer Enterprise hereby additionally irrevocably covenants and agrees with each and every Registered Owner of the Series 2003 Bond that so long as the Series 2003 Bond remains Outstanding: (a) The Sewer Enterprise has maintained and shall continue to maintain itself as an "enterprise" within the meaning of Article X, Section 20 of the Colorado Constitution for the Sewer Enterprise's 2003 fiscal year. Specifically, but not by way of limitation, the Sewer Enterprise covenants and agrees that it shall not receive 10% or more of its annual revenue in grants from all Colorado state and local governments combined during its 2003 fiscal year. Further, the Sewer Enterprise shall use its best efforts to maintain itself as an "enterprise" within the meaning of Article X, Section 20 of the Colorado Constitution during the term of the Series 2003 Bond. (b) The issuance of the Series 2003 Bond and the financing of the Project, and all procedures undertaken incident thereto, are in full compliance and conformity with all presently applicable requirements, provisions and limitations prescribed by the Constitution and laws of the State and the Charter. SECTION 9 Disposition of Proceeds from Loan; Authorization of Project. The proceeds of the Loan shall be applied only to pay the costs and expenses of the Project which are permitted pursuant to the terms of the Loan Agreement and § 31- 35- 403(2), C.R.S., including without limitation the reimbursement of funds which may have been previously advanced for such purpose. The Project is hereby authorized and approved, and the appropriate officers and employees of the Sewer Enterprise are hereby authorized and directed to take all actions necessary for the acquisition, construction, reconstruction, improvement, betterment or extension of the Project from the proceeds of the Series 2003 Bond and, to the extent necessary, from any other legally available moneys of the Sewer Enterprise. It is hereby determined by the Sewer Enterprise that the Series 2003 Bond matures at such time not exceeding the estimated life of the Project. SECTION 10. Establishment of Revenue Account and Debt Service Account. (a) The Sewer Enterprise hereby establishes the "Sewer Enterprise of Pueblo, Colorado, Sewer Revenue Account" (the "Revenue Account"), which will be used for the collection of the Gross Revenues of the Sewer Enterprise, as set forth in Section 11 hereof and the Loan Agreement. (b) The Sewer Enterprise hereby establishes the "Sewer Enterprise of Pueblo, Colorado, Sewer Revenue Debt Service Account" (the "Debt Service Account'), which will be used for the payment of the principal of, premium, if any, and interest on the Series 2003 Bond and on all Parity Lien Bonds, as set forth in Section 11 hereof and the Loan Agreement. (c) Any investment income earned on amounts designated in the Revenue Account or the Debt Service Account will be credited to the Revenue Account or the Debt Service Account, respectively. SECTION 11 Application of Gross Revenues. So long as the Series 2003 Bond shall remain outstanding, all Gross Revenues, as they are received, shall be deposited into the Revenue Account, and the Gross Revenues are hereby appropriated for such purpose. Moneys on deposit in the Revenue Account shall be transferred from the Revenue Account and applied to the following purposes and in the following order of priority: (a) First, there shall be maintained in the Revenue Account amounts sufficient to pay Operation and Maintenance Expenses of the Sewer Enterprise promptly as they become due and payable; (b) Second, there shall be credited to the Debt Service Account on the twentieth (20th) day of each month, (i) beginning June 20, 2003, an amount which, together with any moneys therein and available therefor, is equal to one -third of the interest maturing on the then Outstanding Parity Lien Bonds (including the Series 2003 Bond) on September 1, 2003, and (ii) beginning September 20, 2003, (A) one -sixth (1/6) of the interest maturing on the then Outstanding Parity Lien Bonds (including the Series 2003 Bond) on the next March 1 or September 1, and (B) one - twelfth (1/12) of the principal of the then Outstanding Parity Bonds (including the Series 2003 Bond) maturing on the next September 1; and (c) Third, monthly after the deposits of Revenue described above, there shall be paid to the Sewer Enterprise the amount remaining in the Revenue Account, to be used in any lawful manner by the Sewer Enterprise. The moneys in the Debt Service Account shall be used solely for the purpose of paying the principal of and interest on the then Outstanding Parity Lien Bonds (including the Series 2003 Bond). The Sewer Enterprise shall forward to the Authority on or prior to each principal or interest payment date on the Series 2003 Bond, in immediately available funds, amounts sufficient to pay debt service on the Series 2003 Bond on each such date. Concurrently with (in the case of Parity Lien Bonds) or subsequent to (in the case of subordinate lien obligations) the payments required by paragraph (b) of this Section, any remaining amounts in the Revenue Account shall be used by the Sewer Enterprise for the payment of principal of and interest on any additional obligations hereafter authorized to be issued and payable from the Net Pledged Revenues, including reasonable reserves therefor, as the same accrue. SECTION 12 Tax Covenants of Sewer Enterprise. The Sewer Enterprise, having been fully informed of and having considered all the pertinent facts and circumstances, does hereby find, determine and declare that: (a) the Sewer Enterprise covenants that it will make no use of the proceeds of the Series 2003 Bond at any time during the term thereof which, if such use had been reasonably expected on the date the Series 2003 Bond are issued, would have caused the Series 2003 Bond to be "arbitrage bonds" within the meaning of Section 148 of the Code; and (b) the Sewer Enterprise covenants that the gross proceeds of the Series 2003 Bond shall not be used in a manner which will cause the Series 2003 Bond to be considered a "private activity bond" within the meaning of Section 141 of the Code. SECTION 13 Defeasance. When the Series 2003 Bond and interest thereon have been duly paid, the pledge and lien and all obligations hereunder shall thereby be discharged as to the Series 2003 Bond, and the Series 2003 Bond shall no longer be deemed to be Outstanding within the meaning of this Ordinance. There shall be deemed to be such due payment when the Sewer Enterprise has placed in escrow and in trust with a commercial bank located within or without the State and exercising trust powers, an amount sufficient (including the known minimum yield from Federal Securities in which such amount may be initially invested) to make all payments of principal of and interest on the Series 2003 Bond as the same becomes due. The Federal Securities shall become due prior to the respective times on which the proceeds thereof shall be needed, in accordance with a schedule established and agreed upon between the Sewer Enterprise and the bank at the time of the creation of the escrow, or the Federal Securities shall be subject to the redemption at the option of the holders thereof to assure such availability as so needed to meet such schedule. "Federal Securities" within the meaning of this Section shall include only direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the Untied States of America and which are not callable before maturity by the issuer of such obligations. SECTION 14 Additional Obligations. So long as the Series 2003 Bond is Outstanding: (a) Limitations Upon issuance of Parity Lien Bonds. Nothing in this Ordinance shall be construed to prevent the issuance by the Sewer Enterprise of additional obligations (including refunding obligations) payable in whole or in part from the Net Pledged Revenues (or any designated part thereof) and constituting a lien thereon on a parity with, but not prior or superior to, the lien of the Series 2003 Bond; provided, however, that before any such additional Parity Lien Bonds are authorized or actually issued: (i) The Sewer Enterprise is then current in all payments required to have been accumulated in the Debt Service Account, and has made all payments required on the Series 2003 Bond and any Outstanding Parity Lien Bonds. (ii) The revenues derived from the entire Net Pledged Revenues for the twelve consecutive calendar months immediately preceding the month of issuance of such additional Parity Lien Bonds shall have been sufficient to pay an amount equal to (A) one hundred and ten percent (110 %) of the combined maximum annual principal and interest requirements on the then Outstanding Series 2003 Bond, any then Outstanding Parity Lien Bonds theretofore issued, and the Parity Lien Bonds then proposed to be issued, and (B) one hundred percent (100 %) of the maximum annual principal and interest requirements on all other indebtedness of the Sewer Enterprise payable from the Net Pledged Revenues. In determining the amount of such Net Pledged Revenues, the Net Pledged Revenues shall be adjusted if any new rates, fees and charges have been established for the Sewer Enterprise prior to the issuance of the Parity Lien Bonds to be issued, in which case the Net Pledged Revenues shall be adjusted by applying such new rates, fees and charges to customer billings for such twelve month period as if such rates, fees and charges had been in effect during the whole of such twelve month period. (b) Certificate of Net Pledged Revenues. A written certification by a certified public accountant who is not a regular salaried employee of the City or the Sewer Enterprise that such Net Pledged Revenues are sufficient to pay the amounts required by paragraph (a)(ii) of this Section shall be conclusively presumed to be accurate in determining the right of the Sewer Enterprise to authorize, issue, sell and deliver such additional Parity Lien Bonds. (c) Subordinate Obligations Permitted. Nothing in this Ordinance shall be construed to prevent the issuance by the Sewer Enterprise of additional obligations (including refunding obligations) payable from the Net Pledged Revenues (or any designated part thereof) and having a lien thereon subordinate or junior to the lien of the Series 2003 Bond; provided, however, that no such subordinate obligations shall be issued unless for any 12 consecutive months out of the 18 months prior to the month in which such subordinate obligations are to be issued, Net Pledged Revenues for the Sewer Enterprise were at least one hundred percent (100 %) of the maximum annual debt service on all the then Outstanding Sewer Enterprise indebtedness and the subordinate obligations proposed to be issued. (d) Superior Obligations Prohibited. Nothing in this Ordinance shall be construed to permit the Sewer Enterprise to issue additional obligations (including refunding obligations) payable from the Net Pledged Revenues (or any designated part thereof) having a lien thereon prior and superior to the lien of the Series 2003 Bond. SECTION 15 General Authorization. The President or the Vice President of the City Council and the City Clerk shall, and they are hereby authorized and directed to take all necessary or appropriate actions and to execute and deliver all other agreements, certificates and documents as may be necessary or desirable to effectuate the provisions of this Ordinance and to comply with the requirements of law. Pursuant to Exhibit B of the Loan Agreement, the Wastewater Director and the Assistant City Manager for Finance are hereby designated as the Authorized Officers (as defined in the Loan Agreement) for the purpose of performing any act or executing any document relating to the Series 2003 Bond or the Loan Agreement. A copy of this Ordinance shall be furnished to the Authority as evidence of such designation. In addition, the appropriate officers and employees of the Sewer Enterprise and the City are hereby authorized and directed to furnish and supply information concerning the Sewer Enterprise and the City to the Authority for use in the preparation of an official statement to be sued to market the Authority's bonds. SECTION 16 Exercise of Home Rule Power. Pursuant to Article XX of the State Constitution and the Charter, the City and the Sewer Enterprise hereby determine and declare the issuance of the Series 2003 Bond to be a local matter, and therefore all statutes of the State which might otherwise apply in connection with the issuance of the Series 2003 Bond are hereby superseded. SECTION 17 Severability. If any one or more sections or parts of this Ordinance shall be adjudged unenforceable or invalid, such judgment shall not affect, impair or invalidate the remaining provisions of this Ordinance, it being the intention that the various provisions hereof are severable. SECTION 18 Repealer. All ordinances, resolutions or parts thereof in conflict with this Ordinance are hereby repealed to the extent of such conflict. SECTION 19 Ordinance Irrepealable. This Ordinance is, and shall constitute, a legislative measure of the City Council, sitting as the governing body of the Sewer Enterprise, and after the Series 2003 Bond hereby authorized is issued and sold and is Outstanding, this Ordinance shall constitute a contract between the Sewer Enterprise and the Registered Owner of the Series 2003 Bond, and shall be and remain irrepealable until the Series 2003 Bond, and the interest accruing thereon, shall have been fully paid, satisfied and discharged. SECTION 20 Recordation and Publication. This Ordinance, immediately on its passage, shall be recorded in the records of the City Clerk and the Sewer Enterprise kept for that purpose. SECTION 21 Limited Recourse. No recourse shall be had for the payment of the principal of or interest on any of the Series 2003 Bond or for any claim based thereon or upon any obligation, covenant or agreement contained in this Ordinance against any past, present or future officer, employee or agent of the City or the Sewer Enterprise, or of any successor public corporation, as such, either directly or through the City or the Sewer Enterprise or any successor public corporation, under any rule of law or equity, statute or constitution or by the enforcement of any assessment or penalty or otherwise, and all such liability of any such officers, employees or agents as such is hereby expressly waived and released as a condition of and consideration for the passage of this Ordinance, and the issuance of the Series 2003 Bond. SECTION 22 Effective Date. This Ordinance shall take effect on April 14, 2003, upon its final passage and approval. SECTION 23 Public Hearing. A public hearing on this Ordinance shall be held on Monday, April 14, 2003, at 7:00 p.m., in the City Council Chambers, One City Hall Place, Pueblo, Colorado. INTRODUCED March 24 2003 By AI Gurule Councilperson APPROVED: President of City Council ATTEST: City PASSED AND APPROVED: April 14 2003