Fort Walton Beach Ordinance — 1802 utility revenue bonds — reading text

1st 2nd ORDINANCE NO. 1802 AN ORDINANCE AMENDING ORDINANCE 1633 OF THE CITY IN CONNECTION WITH ITS UTILITY SYSTEM REVENUE BONDS, SERIES 2005; APPROVING THE TREATMENT OF SEWAGE BY OKALOOSA COUNTY; MAKING CERTAIN FINDINGS; MAKING CERTAIN OTHER COVENANTS AND AGREEMENTS IN CONNECTION WITH THE 2005 BONDS; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY OF FORT W ALTON BEACH, FLORIDA: SECTION 1. Defmitions. Capitalized terms used in this amending ordinance ( the Amending Ordinance") shall have the meanings that are attributed to them in Section 2 of Ordinance No. 1633 enacted by the City of Fort Walton Beach, Florida ( the " Issuer") on April 12, 2005 ( the " Original Ordinance") and Resolution 2005- 05 adopted by the Issuer on April 12, 2005 ( the " Resolution"), unless the context clearly requires a different meaning and except that any provision of the Original Ordinance or Resolution to the contrary notwithstanding, the following terms shall have the definitions herein established. Cost of Operation and Maintenance" of the System shall mean all current expenses, paid oraccrued, for the operation, maintenance and repair of all facilities of the System, as calculated in accordance with sound accounting practice, and shall include, without limiting the generality of the foregoing, charges for waste treatment at the County Plant, transmission of treated or untreated waste to the connection points for the County Plant and any other fee, charge, cost or expense incurred by the City pursuant to or in connection with the Interlocal Agreement, insurance premiums, administrative expenses of the Issuer related solely to the System, labor, cost of materials and supplies used for current operation, and charges for the accumulation of appropriate reserves for current expenses not annually recurrent but which are such as may reasonably be expected to be incurred in accordance with sound accounting practice, but excluding any reserve for renewals or replacements, for extraordinary repairs or any allowance for depreciation, and excluding amortization and interest expense. City Sewer Treatment Facility" shall mean the sewer treatment facility currently owned by the Issuer and which will be dismantled, de- commissioned and removed from the System pursuant to this Amending Ordinance. County" shall mean Okaloosa County, Florida. County Plant" shall mean the sewage treatment plant owned and operated by the County. Interlocal Agreement" shall mean the Wastewater Service Interlocal Agreement between the Issuer and the County whereby the County will provide wastewater treatment and disposal services within the City Service Area as described therein. Project" shall mean the acquisition and construction of additions, extensions and RIL-06/ 23/ 09- 6601- 2009 Modification-Amendment Ordinance v4 improvements to the System to be financed, in whole or in part, with the proceeds of the 2005 Bonds and the dismantling, de- commissioning and removal of the City Sewer Treatment Facility, in whole or in part, and the interconnection of the Issuer' s wastewater treatment facilities with those of the County. System" shall mean the Issuer' s combined system for the production, treatment and distribution of water; for the collection and transmission of collected wastewater; and for the treatment and distribution of reclaimed water, together with any and all assets, improvements, extensions and additions thereto hereafter constructed or acquired. Following the connection of the Issuer' s sewage collection lines to the County wastewater treatment system, the term System", as used in the Ordinance or the Resolution shall be deemed to refer only to the portions of the system other than treatment and disposal of wastewater except to the extent that the Issuer retains responsibility for the operation, maintenance and repair of the Issuer' s Wastewater Collection System and its Reclaimed Distribution System ( as such terms are defined in the Interlocal Agreement) in accordance with the Interlocal Agreement and is obligated to make payments to the County for the provision of services which would otherwise be a part of the System. SECTION 2. Supplemental Findings. Additional findings are hereby made with respect to the System as follows: A. Section 3( H) is hereby added to the Ordinance, to read as follows: The Issuer has determined that it is more economical and efficient for the Issuer to contract with the County for treatment of the wastewater collected by the System than for the Issuer to operate a treatment facility, and the Issuer is entering into the Interlocal Agreement with the County whereby the Issuer will interconnect its downstream wastewater to one or more appropriate connection points with the County sewer treatment facility. B. Section 3( 1) is hereby added to the Ordinance, to read: The Issuer has determined that the amendments contemplated by this Amending Ordinance will not adversely impact the Issuer' s obligations under the Ordinance and Resolution including the Issuer' s unconditional promise to pay the principal of and interest on the Bonds as the same shall come due upon maturity or redemption. SECTION 3. Amended Covenants. The covenants contained in the Original Ordinance are hereby amended as follows: An additional paragraph is added to the end of Section 15J to read as follows: Nothing in this Ordinance shall be deemed to prohibit the Issuer from entering into an agreement whereby the County treats the collected wastewater of the System and charges the Issuer a per- gallon fee for such treatment as a part of the Costs of Operation and Maintenance of the System. Consistent therewith, the Issuer is authorized to thereafter dismantle, sell, de- commission and/ or dispose of its City Sewer Treatment RIL-06/ 23/ 09- 660 1- 2009 Modification- Amendment Ordinance v4  Facility and disposal facilities and, subject to the requirements of this Section 15( J) of Ordinance 1633 of and also to Exhibit D to the Non- Arbitrage and Tax Certificate executed by the Issuer in connection with the issuance of the 2005 Bonds, apply the proceeds thereof for any lawful purpose of the Issuer; and provided, however, the site on which the City Sewer Treatment Facility is now located remains a part of the System and subject to the requirements of this Section 15J. Notwithstanding anything in the Ordinance to the contrary, the Issuer shall not sell, lease, mortgage, pledge or otherwise dispose of or encumber the System or any part thereof with a value of $ 50, 000 or more without the prior written consent of the Municipal Insurer. Section 15R is amended to read as follows: Except as contemplated in the last paragraph of Section 15( J)hereof, to the full extent permitted by law, the Issuer will not hereafter grant, or cause, consent to, or allow the granting of, any franchise or permit to any person, firm, corporation or body, or agency or instrumentality whatsoever, for the furnishing of water or wastewater services to or within the boundaries of the Issuer; provided, however, that if the Consulting Engineer renders an opinion that it would not be feasible for the Issuer to provide such services to any specific area within the three years succeeding a request to provide such service, the Issuer may authorize or allow the granting of such franchise or permit for such area upon such terms and conditions as it may approve. This subsection ( R) shall not be deemed to preclude the Issuer from contracting with the County pursuant to the Interlocal Agreement for the treatment and disposal of sewage. SECTION 4. Severability of Invalid Provisions. If anyone or more of the covenants, agreements or provisions herein contained shall be held contrary to any express provision of law or contrary to the policy of express law, though not expressly prohibited, or against public policy, or shall for any reason whatsoever be held invalid, then such covenants, agreements or provisions shall be null and void and shall be deemed separable from the remaining covenants, agreements or provisions and shall in no way affect the validity of any of the other provisions hereof or of the 2005 Bonds issued hereunder. SECTION 5. Repealing Clause. All ordinances or resolutions or parts thereof of the Issuer in conflict with the provisions herein contained are, to the extent of such conflict, hereby superseded and repealed. Except as amended and supplemented hereby, the terms and provisions of the Original Ordinance and the Resolution are hereby ratified and confirmed and shall remain in full force and effect. RIL-06/ 23/ 09- 6601- 2009 Modification- Amendment Ordinance v4  SECTION 23. EFFECTIVE DATE. This Amending Ordinance shall take effect as provided by law. N one of the changes to the Original Ordinance shall become effective until such time as ( i) such changes have been approved by the Insurer, and ( ii) the sewage collection system has been Municipal interconnected with the wastewater treatment facilities of the County in such manner as to properly receive and treat the sewage collected by the Issuer' s System. The City acknowledges that additional modifications may be required by the Municipal Insurer prior to this ordinance becoming effec ive Duly enacted this LL~ y of CITY OF FORT W AL TON BEACH, FLORIDA ATTEST: By: I! eM- ~ Mike Anderson, Mayor By: UJm C', Helen Spencer, Cit Approved for form and legal sufficiency: DISPOSITION 4 RIL-06/ 23/ 09- 6601- 2009 Modification- Amendment Ordinance v4  Legal 6302 Legal '6366