Section 105-086; Ord. 18003; Amending Ordinance No. 016011 in connection with certain outstanding bonds of the City; prescribing related matters


Ordinance No.         18003                            Council Bill No.          B 53-04        


AN ORDINANCE

amending Ordinance No. 016011 in connection with certain outstanding bonds of the City; prescribing related matters; and fixing the time when this ordinance shall become effective.

BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBIA, MISSOURI, AS FOLLOWS:

    WHEREAS, the City of Columbia, Missouri (the “City”) is a municipal corporation and constitutional charter city operating under a home rule form of government, organized and existing under the Constitution and laws of the State of Missouri; and

    WHEREAS, the City is authorized under the provisions of Chapter 250 of the Revised Statutes of Missouri (the “Act”), to issue and sell revenue bonds for the purpose of paying all or part of the cost of extending and improving the revenue producing sewerage system serving the City and its inhabitants (the “System”); and

    WHEREAS, in order to provide for the most cost effective financing of certain extensions and improvements to the System the City has participated in the Missouri Leveraged State Water Pollution Control Revolving Fund Program (the “SRF Program”) of the Department of Natural Resources (“DNR”) and the State Environmental Improvement and Energy Resources Authority (the “Authority”) pursuant to the Act by the issuance of the City’s Sewerage System Revenue Bonds (State Revolving Fund Program) Series 1999, in the original principal amount of $3,730,000 (the “Bonds”), authorized by Ordinance No. 016011 passed and approved on May 20, 1999 (the “Bond Ordinance”); and

    WHEREAS, pursuant to the SRF Program the Authority has purchased the Bonds with a portion of the proceeds of the Authority’s $47,970,000 aggregate principal amount of Water Pollution Control and Drinking Water Revenue Bonds (State Revolving Fund Programs - Master Trust) Series 1999A (the “Authority Bonds”), issued pursuant to the Bond Indenture dated as of June 1, 1999, (the “Indenture”), by and between the Authority and UMB Bank, N.A., as successor trustee (the “Trustee”); and

    WHEREAS, the City Council of the City finds and determines that it is in the best interests of the City to obtain the benefit of the net interest savings relating to the refunding of certain Authority Bonds allocable to the City and to amend the Bond Ordinance in order to provide for the credit of net interest savings resulting from the refunding of the Authority Bonds to the payments on the Bonds, to further amend the Bond Ordinance as requested by the Authority and DNR in connection with the issuance of the Authority Refunding Bonds (defined below), and to provide for certain other matter;

    NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBIA, MISSOURI, AS FOLLOWS:

    SECTION 1. Bond Ordinance Amendments. In consideration of the City's receipt of the portion of the net savings resulting from the refunding of the Authority Bonds which are allocable to the City (as further described below) and in order to provide for the proper credit of investment earnings to be received by the City pursuant to the City's participation in the SRF Program under the Bond Ordinance, the Bond Ordinance is amended as provided in this Section.  Terms not otherwise defined in this Ordinance have the meanings set forth in the Bond Ordinance.

(a)     Definitions.

(i)    Section 101 of the Bond Ordinance is amended by inserting the following:

"Authority Refunding Bonds" means the Water Pollution Control and Drinking Water Refunding Revenue Bonds (State Revolving Fund Programs - Master Trust) Series 2004A of the Authority.

"Authority Refunding Bonds Trustee" means the bond trustee with respect to the Authority Refunding Bonds, and its successors and assigns.

 (b)     Optional Redemption.

    (i)     The Mayor or the City Manager is authorized and directed to provide written instructions to the Trustee directing the optional redemption of the Authority Bonds allocable to the City which are being refunded by the Authority (the "Refunded Authority Bonds").  The initial schedule of the Refunded Authority Bonds is set forth in Exhibit A.  The Mayor or the City Manager is authorized to approve a final schedule of Refunded Authority Bonds and authorize the Authority to redeem the Refunded Authority Bonds on the redemption date for the Refunded Authority Bonds  as designated by the Authority.  The signature of the Mayor or the City Manager to a certificate to which the final schedule of Refunded Authority Bonds is attached will be conclusive evidence of approval of the final schedule.

(ii)     The City irrevocably and unconditionally waives its right to optionally redeem Bonds maturing or subject to mandatory sinking fund redemption on the dates and in the principal amounts corresponding to the Refunded Authority Bonds (the "Non-refundable Bonds").  The initial schedule of the Non-refundable Bonds is set forth in Exhibit B.  The Mayor or the City Manager is authorized to approve a final schedule of Non-refundable Bonds.  The signature of the Mayor or the City Manager to a certificate to which the final schedule of Non-refundable Bonds is attached will be conclusive evidence of approval of the final schedule.

(iii) The City will not exercise its right to optionally redeem any other Bonds without the prior written consent of the Authority, which consent is not to be unreasonably withheld and is conditioned upon a determination by the Authority that such redemption would not adversely affect  the timely payment of the principal of and interest on the portion of the Authority Refunding Bonds allocable to the Refunded Authority Bonds.

(iv)     Sections 302 and 904 and Exhibit B of the Bond Ordinance, including the provisions relating to authorized denominations of the Bonds, which will be integral multiples of $1, are amended in accordance with this subsection (b).

(c)     Application of Moneys in Revenue Fund. Section 602(a) of the Bond Ordinance is amended by deleting clauses (I) and (II) of subparagraph (2)(A) and inserting in lieu thereof the following:


(i) upon the City's receipt of the Trustee's semiannual notice of the balances remaining in the Debt Service Account and the Interest Account as of the Business Day following the transfer by the Trustee to the Refunding Bonds Trustee pursuant to the Indenture, an amount equal to such balances credited in equal installments against the monthly deposits due on and prior to the next Interest Payment Date; and


(ii) upon the City's receipt of the Trustee's semiannual notice of (a) projected investment earnings in the Reserve Account for the current Interest Period and (b) actual investment earnings in the Construction Account and in the Reserve Account (less the earnings in the Reserve Account projected pursuant to subclause (a)) for the prior Interest Period, an amount equal to such projected earnings and actual earnings will be credited in equal installments against the monthly deposits due on and prior to the next Interest Payment Date; and


    SECTION 2. Further Authority. The City shall, and the Mayor, the City Clerk and the City Manager are hereby authorized and directed to, take such further action, and execute such other documents, certificates and instruments as may be necessary or desirable to carry out and comply with the intent of this Ordinance.


    SECTION 3. Effective Date. This Ordinance is in full force and effect from and after its passage.



    PASSED this 16th day of February, 2004.