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HomeMy Public PortalAboutOrd 343 Finance Wtr/Sew System Gilmore & Bell, P.C. 5/7/2001 (Published in The Ark Va/ley News, on May n, 2001) ORDINANCE NO. J'I3 AN ORDINANCE OF THE CITY OF BEL AIRE, KANSAS, AUTHORIZING IMPROVEMENTS TO THE CITY'S PUBLIC WATER SUPPLY SYSTEM AND SEWAGE DISPOSAL SYSTEM AND PROVIDING FOR THE PAYMENT OF THE COSTS THEREOF BY THE EXECUTION OF A TEMPORARY FINANCING AGREEMENT AND THE ISSUANCE OF THE CITY'S TEMPORARY NOTES. WHEREAS, the City of Bel Aire, Kansas (the "City") is a city of the second class, which owns and operates a municipal public water supply system (the "Water Supply System") and a municipal sewage disposal system (the "Sewage System"); and WHEREAS, the City, together with the City of Park City, Kansas ("Park City") has, pursuant to an ordinance duly passed, authorized the creation of the Chisholm Creek Utility Authority (the "Authority") pursuant to the terms of an Interlocal Cooperation Agreement Creating the Chisholm Creek Utility Authority (the "Cooperation Agreement"); and WHEREAS, the Authority is proceeding with plans for the construction of a regional wastewater collection and treatment system (the "Wastewater Project") at an estimated cost of $ 13,265,000, and a water supply treatment and distribution system (the "Water Supply Project") at an estimated cost of $10,752,000, pursuant to plans and specifications thereof to be prepared by or under the direction of OEI Facilities, Inc. ("OEI"); and WHEREAS, until such time as the Authority is in a position to issue financing for the Wastewater Project and the Water Supply Project, the members of the Authority have deemed it advisable to separately authorize certain portions ofthe referenced improvements and provide interim financing therefor; and WHEREAS, pursuant to such intention, the City desires to enter into a Temporal)' Financing Agreement (the "Financing Agreement") with Park City and the Authority, whereby the City agrees to issue temporal)' notes in an amount of not to exceed $950,000, the proceeds of which will be utilized to pay engineering and land acquisition costs associated with the Water Supply Project and Wastewater Project; and . WHEREAS, K.S.A. 65-163d through 65-163u, as amended (the "Water Supply Act"), authorizes any municipality to acquire, construct, reconstruct, improve, equip, rehabilitate or extend all or any part of a public water supply system and to issue general obligalion bonds to pay all or part of any costs thereof; and WHEREAS, the City is a municipality within the terms of the Water Supply Act and the Water Supply System constitutes a public water supply system, as said term is defined in the Water Supply Act; and KMC\402639\PROJAUTH WHEREAS, the governing body of the City hereby finds and determines that it is necessary and advisable to authorize its portion of the Water Supply Project as a Project, as said term is defined in the Water Supply Act, and an extension of the City's Water Supply System, and to provide for the payment of the costs thereof by the issuance of general obligation bonds and/or temporary notes of the City; and WHEREAS, K.S.A. 12-618 provides, in part, that the governing body of any city having a population of less than 80,000 shall have power to provide for one or more systems of sewerage, or drainage, or both, for such city, or for any part thereof, with one or more main sewers or drains and sewer or drains outlets, and to build, construct or purchase pumping stations, sewers, sewer service lines and drains by districts or otherwise, as the governing body may determine; and WHEREAS, K.S.A. 12-619 provides, in part, that if the estimated cost of the main sewer or drain of said system now or hereafter constructed shall be relatively large as compared with the estimated cost of the lateral sewers or drains tributary thereto, or if the said main sewer or drain shall be so located that it will or may receive the sewage or drainage from two or more districts, the governing body shall have power to pass an ordinance providing that the cost of such main sewer or drain below a certain designated point shall be borne by the city and paid in the manner provided in KS.A. 12-624 for the payment of the cost of main sewers and drains now or hereafter constructed beyond the corporate limits of the city; provided, that the said ordinance shall state the point in the line of the main sewer or drain below which the provisions of this section shall apply, shall describe the proposed location of the said main sewer or drain from the said point to the outlet of the same or to the city limits, and shall state the manner of payment of the cost of the said main sewer or drain; and WHEREAS, KS.A. 12-624, as amended and supplemented, provides, in part, that all costs and expenses occasioned by the acquisition of a right-of-way and by the construction of sewers and drains and disposal works beyond the corporate limits of said city shall be borne by the city as a whole and shall be paid out of the general revenue fund or by the issuance of improvement bonds of the city as the governing body may determine, that bonds to pay said costs may be issued in addition to the $100,000 authorized by K.S.A. 12-621 for the construction of disposal works and that such additional bonds may be issued in addition to the limit of bonded indebtedness of such cities as defined by statutes; and WHEREAS, the City of has a population of approximately 5,500; and WHEREAS, the governing body of the City hereby finds and determines that it is necessary and advisable to authorize a portion of its portion of the Wastewater Project as a main interceptor sewer improvement and an extension of the City's Sewage System, pursuant to the authority of KS.A. 12-619; and WHEREAS, said governing body hereby further finds and determines that the costs of constructing said main interceptor sewer improvements will be relatively large as compared to the estimated cost of possible future sewer lateral lines or drains tributary thereto, and that said main interceptor sewer improvements may receive in the future sewage or drainage from two or more districts, and that the costs of constructing said main interceptor sewer improvements should be chargeable to the city at large and paid by the issuance of general obligation bonds and/or temporary notes of the City in the manner provided by KS.A. 12-624 for the costs of main sewer improvembnts and drains now or hereafter constructed beyond the corporate limits of the City; and .. WHEREAS, KS.A. 12-631 t provides that the governing body of any city shall have the power to provide for one or more systems of disposal works for the purification of the sewage of the city or any part KMC\402639\PROJAUTH 2 thereof, and to build, operate and maintain such disposal works as the governing body may designate; and that the cost and expense of building the same shall be borne by the city as a whole, and may either be paid out of the general revenue fund or by the issuance of general obligation bonds, provided that no such bonds shall be issued in a sum exceeding $200,000 in anyone year; and that sewage disposal works as used herein includes any necessary sewage disposal plant, sewers and drains from existing outlets to the plant and from the plant to a creek, ravine or river where sewage may be drained, pumping plants, force mains, and all appurtenances necessary to construct a complete disposal works for the disposal of sewage; and WHEREAS, K.S.A. 12-631 w provides that all the costs and expenses occasioned by the construction of any such disposal works, including the purchase or condemnation of land therefor and including the purchase or condemnation of land for the construction of sewers, drains, pumps and other appurtenances within or without the city used in connection with such disposal works, shall be borne by the city as a whole and paid out of the general revenue fund or by the issuance of internal improvement bonds; such bonds shall be issued as provided by law, and shall not be issued in excess of the amount of the improvement, except that installment coupons shall include the interest on such installments to the maturity thereof; provided, that the bonds issued under this act shall not be included in fixing the limit of the bonded indebtedness ofthe city issuing such bonds; and WHEREAS, the governing body of the City hereby finds and detennines it to be necessary to authorize and provide for the construction of a portion of its portion of the Wastewater Project pursuant to the provision of K.S.A. 12-631 t and to finance said costs by the issuance of general obligation bonds and/or temporary notes pursuant to the provisions ofK.SA. 12-631u; and WHEREAS, the City deems it advisable to issue its temporary notes in an amount of $950,000 to pay its portion of the costs of the Water Supply Project and Wastewater Project, as heretofore set forth; and WHEREAS, the City has selected the firm of Chapman Securities, Inc., Wichita, Kansas (the "Purchaser"), as underwriter for said temporary notes and desires to authorize the Purchaser to proceed with the offering for sale thereof; and WHEREAS, one of the duties and responsibilities of the Purchaser is to prepare and distribute a Preliminary Official Statement and a final Official Statement relating thereto. NOW THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF BEL AIRE, KANSAS: SECTION 1. Water Supply Project Authorization. It is hereby authorized, ordered and directed that the City's portion of the Water Supply Project be authorized as a Project, pursuant to the tenns of the Water Supply Act and an extension of the City's Water Supply System and shall be constructed in accordance with the plans and specifications therefor, to be prepared by or on behalf of OEI, and to be filed in the office of the City Clerk. The estimated costs of the Project and related expenses of financing of the City shall not exceed $412,000. Said costs are authorized to be paid from the proceeds of general obligation bonds and/or temporary notes of the City pursuant to the Water Supply Act. .. SECTION 2. Main Interceptor Sewer Project Authorization. It is hereby authorized, ordered and directed that a portion of the City's portion of the Wastewater Project be authorized as a main interceptor sewer improvement, pursuant to the tenns of K.S.A. 12-619 and shall be constructed in accordance with the plans and specifications therefor, to be prepared by or on behalf of OEI, and to be filed in the office of the City Clerk. The location of the main interceptor sewer improvements shall be from the KMC\402639\PROJAUTH 3 City limits of the City to the City limits of Park City and have an estimated cost, including related expenses of financing of the City of $405,000. Said costs shall be borne by the City, and shall be paid in the manner provided in K.S.A. 12-624, as amended and supplemented, for the costs of main sewers and drains now or hereafter constructed beyond the corporate limits of the City. SECTION 3. Disposal Works Project Authorization. It is hereby authorized, ordered and directed that a portion of the City's portion of the Wastewater Project be authorized as a disposal works improvements, pursuant to the terms of K.S.A. 12-63lt and shall be constructed in accordance with the plans and specifications therefor, to be prepared by or on behalf of OEI, and to be filed in the office of the City Clerk. The estimated costs, including related expenses of financing of the City of the disposal works improvements shall be paid by the issuance of general obligation bonds and/or temporary notes of the City in an amount ofnotto exceed $133,000 pursuant to the terms ofK.S.A. 12-63Iw. SECTION 4. Reimbursement. Any bonds and/or temporary notes issued under the authority of this Ordinance may be used to reimburse expenditures made on or after the date that is 60 days before the date of this Ordinance pursuant to U.S. Treasury Regulation S1.150-2. SECTION 5. Temporary Financing Agreement. The Mayor and Clerk are hereby authorized to execute on behalf of the City, the Temporary Financing Agreement in substantially the form presented to the governing body this date. SECTION 6. Temporary Notes. The Purchaser is hereby authorized to proceed with the offering for sale of $950,000 principal amount of Temporary Notes, Series A, 2001 (the "Notes") in order to pay the City's portion of the costs of the Water Supply Project and Wastewater Project, as heretofore authorized. The City hereby authorizes the Mayor to approve the form of a Preliminary Official Statement relating to the sale of the Notes and to consent to the use and public distribution by the Purchaser of said Preliminary Official Statement. For the purpose of enabling the Purchaser to comply with the requirements of Rule 15c2-l2 of the Securities Exchange Commission (the "Rule"), the appropriate officers of the City are hereby authorized: (a) to provide the Purchaser a letter or certification to the effect that the City deems the information contained in the Preliminary Official Statement to be "final" as of its date, except for the omission of such information as is permitted by the Rule; (b) covenant to provide continuous secondary market disclosure by annually transmitting certain financial information and operating data and other information necessary to comply with the Rule to certain national repositories and the Municipal Securities Rulemaking Board, as applicable; and (c) take such other actions or execute such other documents as such officers in their reasonable judgment deem necessary; to enable the Purchaser to comply with the requirement of the Rule. The City agrees to provide to the Purchaser within seven business days of the date of the purchase contract for the Notes or within sufficient time to accompany any confirmation that requests payment from any customer of the Purchaser, whichever is earlier, sufficient copies of the final Official Statement to enable the Purchaser to comply with the requirements of Rule G-32 of the Municipal Securities Rulemaking Board. SECTION 7. Effective Date. This Ordinance shall be in force and take effect from and after its passage, approval and publication once in the official C:ity newspaper. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] KMC\402639\PROJAUTH 4 . PASSED by the governing body of the City on May 15,2001 and APPROVED AND SIGNED by t~~ N1.~Yoh, ,__.', (,J ,:":~::~J,<;>, ".' , \r ,""\ ',' 0 , #j if'''' ,,'o, ,,_ ,',:' I i{,I' . \'~! \ ~ :~ i (S~jI~> ' r \L 11 t_ t: \ --: ( ,>,J, I \! , \ CD, -< 'i, -': ~-::, -:,C IT r H I ~1 f -:\ '. -1 TrT' Ij:tr~ f if J H J ~ l' .C' .... \ , ~ I "r' ~,. \'" I" ~ . (H I ~"j , I r t fUT/";', '.,~).. ! -;.,,' \ ,. ~p(~ Clerk CERTIFICATE I hereby certify that the foregoing is a true and correct copy of the original ordinance; that said Ordinance was passed on May 15, 2001; that the record of the final vote on its passage is found on page _ of journal _; and that it was published in The Ark Valley News on May _, 2001. DATED: May _, 2001. Clerk [BALANCE OF PAGE INTENTIONALLY LEFT BLANK] KMC\402639\PROJAUTH 5