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HomeMy WebLinkAbout0914 Ordinancef r CITY OF PASCO, WASHINGTON ORDINANCE NO. . ;AN ORDINANCE specifying and adopting a system or plan of additions to.and betterments and..extensions of the. waterworks utility of.the City, including as a part thereof the system of sewerage of the. City; declaring the estimated•cost thereof as near as may be; providing for the issuance of $650,6-30.,00 par value of "Water and Sewer Revenue Bonds, 1957,!' to.pay-the cost thereof; creating A special fund to. provide -for the payment of said bonds; fixing the date, form•, maturities,,interest rate, covenants..and terms of said bonds;.and providing for the: sale of said bonds to.T.erry.Thompson & Co..-, of Seattle, Washington, and for the immediate delivery of the first $249,6*0.00'_par value thereof'to said purchaser. WHEREAS, the City of Pasco, Washington,°by. Ordinance No.•531, passed March 7;; 1944, provided that the system of sewerage of the City, including, all additions, extensions and betterments thereto,'should-be.:operated as a part of . and as belonging to the waterworks utility -of the.City,4pursu,an.t;to the pro- visions.•of Chapter 193 of the 1941 Session Laws of the State of Washington (being FtCW 35.67,320 et seq.); and WHEREAS, the existing waterworks utility of the City, including the system of sewerage as a part thereof, is in such condition that the public health, welfare, safety and convenience require. the making of additions thereto and betterments and extensions thereof .as hereinafter provided; and WHEREAS, the City of Pasco, pursuant to Ordinance No. 768, as amended by Ordinance No. 774,•has heretofore issued, under date of January 1, 1954, $840,000040 par value of "Water and Sewer Revenue Bonds, 1954"; and WHEREAS, by,Secti•on 13 of,said Ordinance No. 768, as amended by Ordinance No. 774, -the City of Pasco reserved the right -to -issue additional water and sewer revenue bonds which shall constitute a charge or.lien upon the revenues of the waterworks utility of the City, including the system of sewerage as a part thereof, and including all additions, betterments and extensions thereof at any time made, on a parity with said "Water and Sewer Revenue Bonds, 1954," provided the following conditions shall be. -met and complied with at the time.of the issuance of such additional bonds: and "(a) That all payments required to be made into the bond redemption funds for the outstanding *Special Fund Water -Sewage Revenue Bonds, Series A,a dated March 1, 1944, the ':Special Fund Water -Sewage Revenue Bonds, 1944-1946, Series B,* dated January 1, 1946, and the `b'dater Revenue Bonds, 1948,`' dated March 1, 1948, shall have been made; and "(b) That all payments required by this ordinance or any ordinance hereafter enacted pertaining. to the bonds of this issue shall have been made into the 'Water and Sewer Revenue Bond Fund, 1950; and "(c) That the ordinance providing for the issuance of such additional bonds shall further provide for the creation of a reserve fund or account for such additional bonds into which fund shall be accumulated an amount equal to the average annual debt service requirements of the additional bonds proposed to be .issued, which amount shall be accumulated no later than five years after the date of issuance of such additional bonds. "(d) That the revenues of the said waterworks util- ity, including the sewerage system as a part thereof, including the additional revenues reasonably anticipated to be received -as a result of the making of the improve- ments in connection with which the additional revenue bonds are proposed to be issued, shall be deemed sufficient, after the payment of operation and maintenance costs and -- taxes, to equal at least 1.4 times the average annual principal and interest requirements of all outstanding water revenue bonds or water.and sewer revenue bonds,., including the'bond-s of this issue and of the additional revenue bonds proposed to be so issued. Such determination of the sufficiency of the revenues shall be made and certi- fied to by either•a certified public accountant or professional- engineer experienced in municipal utilities and licensed to practice in.the State 'of Washington;. PROVIDED, HOWEVER, that this certificate shall not be - required in the event that the additional bonds proposed to be so issued are issued for the'purpo.se of refunding out- standing'Water Revenue Bonds or.Water and Sewer Revenue Bonds and the average annual debt service requirements of such.proposed additional revenue bonds are not increased over the requirement for the bonds.being so refunded.."; WHEREAS, the City Council hereby finds and declares that all pay- ments required to be made -into the bond redemption fund; for the outstanding "Special'Fund Water -Sewage Revenue Bond;.Series A," dated March 1, 1944, the "Special Fund "dater -Sewage Revenue Bonds, 1944-1946, Series B," dated January 1, 1946,.and the "Water Revenue.Bonds, 1948," dated March 1, .1948, have been made, and that all,payments; required by Ordinance No. 760, as amended by Ordinance.No. 774, pertaining to the outstanding "Water and Sewer Revenue Bonds, 1954,".have been made into the "Water and Sewer Revenue Bond - 2 - Fund, 1954," and that Holly A. Cornell, of Cornell, Howland, Hayes Merryfield, Consulting Engineers, a professional engineer experienced in municipal utilities and licensed to practice in the State of Washington, has certified that the revenues of the waterworks utility, including the system of sewerage as a part thereof, including the additional revenues reasonably anti- cipated to be received -as a result of the making of the improvements in connection with which the additional revenue bonds are proposed to be issued, after the payment of operation and maintenance costs, and taxes, are suffi- cient to meet the 1.4 coverage requirement specified in said paragraph (d) of said Section 13, as evidenced by his certificate to such effect on file with the City Clerk; and WHEREAS, provision is hereinafter made for the creation of a reserve account for the additional bonds proposed to be issued, into which account shall be accumulated, no later than five years after the date of the issuance of such additional bonds, an amount equal to the average annual debt service requirement for the additional bonds hereinafter authorized to be issued, NOW, THEREFORE, FOLLOWS:, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN AS Section 1, The gross revenues and benefits to be derived from the operation and maintenance of the waterworks utility of the City, including the system of sewerage as a part thereof, and the additions, extensions and betterments thereto herein provided for, at the rates to be charged for water and sewerage service on the entire utility will, in the judgment of the City Council,.be more than sufficient to meet all the expenses of opera- tion and maintenance thereof and to permit the setting aside of a special fund out of the gross revenues of the entire utility of an amount sufficient to pay the interest on the revenue.bonds herein authorized to be issued as such interest becomes payable and to pay and redeem"all of such bonds at maturity and to meet the debt service requirements of all outstanding "Special Fund Water -Sewage Revenue Bonds, Series :A," dated March 1, 1944, "Special. Fund Water -Sewage Revenue Bonds, 1944-1946, Series B," dated January 1, 1946, "Water Revenue Bonds, 1948," dated March 1, 1948, and the "Water and mm Sewer Revenue Bonds, 1954," dated January 1, 1954. Section 2. The City of Pasco hereby specifies and adopts a system or.plan of�additions to and betterments -and extensions of the waterworks utility of the City, including the system of sewerage as a part thereof, to consist of the following: A. There shall be constructed and installed a 20 -inch diameter cast iron pipe line beginning at Chase and Court Streets in the City of Pasco and extending thence south on Chase Avenue to Olive Street, thence east on Olive Street to the existing 20 -inch -pipe. line located at Lucas and.Olive. Streets, all in the City of Pasco. Said construction shall include all necessary pipe, valves, fittings, meters, connections to existing mains and pipe lines, service connections, pavement, curb and sidewalk.repair,*testing, sterilization, and other facilities and appurtenances required ,to provide a complete;, operating addition to the existing water distribution system, and said construction all to be as more completely described in plans and-speci_. fications prepared by Cornell, Howland, Hayes and lVerryfield, consulting engineers, of Corvallis, Oregon, entitled "Contract Documents for the* Construction of Water Distribution Lines," dated August, 1957, and now on file in the office of the City Clerk, City Hall, Pasco, Washington.• B. There shall be constructed and installed a 16 -inch and 12 -inch diameter cast iron pipe line beginning at Arthur Avenue at the northwest cor- ner of, the southwest quarter of Section 20, -Township 9 North, Range 30 East, Willamette Meridian, in the City,of,.Pasco, and extending thence easterly across the tracks of the Northern Pacific Railroad to Oregon -Avenue, and thence southerly along said Oregon Avenue to the east -west center line of Section :?0, Township 9 North, Range 30 East, Willamette Meridian, and thence east along the center line of said.Section .20 to the existing 8 -inch line located 1.99.5 feet west of the center of said -Section 20, all in the City of Pasco. Said construction shall include all necessary pipe, steel encased railroad undercrossings, valves, fittings, meters, connections to -'existing mains, service connections, pavement, curb and sidewalk repair, testing, sterilization and other facilities as required to provide a complete, operating addition to'the water distribution system., -and said construction all to be as more completely described in; plans and specifications prepared by Cornell, 4 - Howland, Hayes and Nierryfield, consulting engineers, of Corvallis, Oregon, entitled "Contract Documents for the Construction of Water Distribution Lines," dated August,.1957, and.now on file in the office of the City Clerk, City.Hall, Pasco, Washington, C. There shall be constructed and installed additions and improve - menta to the existing -water treatment plant located on "B" Street between 12th and 1.3th.Avenues in the.City of Pasco. Said additions shall include, but not be limited to, flocculation, sedimentation, filtration, clear well, piping, control, pumping, power, chemical storage, chemical feed and mixing facilities, and operating galleries, landscaping, and all other facilities,.appurtenances and equipment required to provide a complete, -operating addition to the exist- ing water treatment facilities with the capacity of approximately 10 million gallons per day. Said improvements..shall also..includ.e, but not be limited.to, rebuilding and revision of the existing sand trap, flocculation, mixing,.sedi- mentation, filtration, filter;piping control, pumping, chemical storage, chemical feeding, laboratory and operating gallery, landscaping, and all other facii1 ties, appurtenances and equipment required :to provide a rebuilt facility capable of meeting recognized standards for operation at the rate of approxi- mately 10 million gallons per day, and said additions and improvements all to be as more completely described i.n a report prepared by Cornell, Howland, Hayes and Merryfield, consulting engineers,.Corvallis, Oregon, entitled "Engineering Report on a Water.System Tnvestigation,'part.IT, Treatment and Pumping.Facilities," dated March, 1954, and now on file in the office of the City Clerk., City -Hall, Pasco, Wa_sh.ington. .-D.. There shall be constructed and installed improvements and additions to the existing water intake pumping station located on the bank of the Columbia River at approximately the extension.of 12th Avenue in the City of Pasce, Washington, Said improvements and additions.shall.include,,but not be limited to, pumps, screens, controls, valves, fittings, structural changes, piping and control lines from said pumping station to the existing water treatment plant, landscaping and other facilities, appurtenances and equip - meet required. to construct a complete, operating pump station facility capable of a normal operating rate of 20 million gallons a day, and said improvements and additions all to be as more completely described in a report prepared. by Cornell, Howland, Hayes and Merryfield, consulting engineers, Corvallis, Oregon, and entitled "Engineering Report on the Water System Investigation, Part II, Treatment and Pumping Facilities," dated March, 1954, and now on file in the office of the City Clerk, City Hall, Pasco, Washington. - E. There shall be contributed the sum of $40,000.00 toward the payment.of the construction costs of installing those portions of the sanitary sewer system,in the northwest area of the City under Local Improvement District No. 63, which are properly the obligation of the City as .a whole. Reference is hereby made to Ordinance No. 905, adopted October 1, 1957, which Ordinance ordered said improvement and established Local Improvement District No. 63. F. There shall be constructed and installed a 12 -inch diameter cast iron.pipe line on Court Street from Lucas Avenue to Arthur Avenue in the City of Pasco. Said construction sh�l include all necessary pipe, valves, fittings, meters, connections to existing pipe lines, service connections, pavement, curband sidewalk repair, testing, sterilization, and other facilities and appurtenances required to provide a complete, operating addition to the water distribution system, and said construction all to be as more completely des- cribed in a report prepared by Cornell, Howland, Hayes and Merryfield, consulting engineers, Corvallis, Oregon, and entitled "Engineering Report on a Water Distribution System investigation, Part I, Source of Supply, Distribution, and Storage," dated "August, 1953„ acid now *on file in the office of the City Clerk, Gity Hall, -'Pasco, -'Washington. There shall -be included in the foregoing the acquisition of all necessary valves, fittings, couplings, connections, equipment, franchises, easements, rights-of-way, leasehold interests, and land that may be required, . and there shall be included the performance of such work as may be incidental and necessary to the foregoing construction and installation. - 6 - The City Council.may modify the details of the foregoing system or plan and make such changes and modifications therein as in its judgment appear advisable, provided such changes and modifications do not substantially alter the purposes hereinbefore set forth.. Section 3. The life of the .foregoing additions to and betterments and extensions of.the waterworks utility, including,the system of sewerage as a part thereof, is.hereby declared to be at least thirty years. Section 4.,* The estimated cost, as near as may be, of the aforesaid system or plan is declared to be $650,000.00. Section 5. For the purpose of obtaining the funds with which to carry out„the foregoing system or plan of additions to.and betterments 'and extensions of the waterworks utility of the City, including the -system of sewerage <<s a:part thereof, there .shall be issued and sold "Water and Sewer Revenue Bonds., 1957,” of the City of Pasco,.in the principal sum of $650,000.00 (hereinafter called the "Bonds").' The Bonds shall be in denominations of $1,000.00 each, shall be numbered from 1 to 650, inclusive, shall be dated December 1, 1957, and shall bear interest at the rate of 5% per annum, interest to be payable semiannually.on January 1st and July lst of each year, with the first interest coupon covering a seven-month period, interest to maturity to be evidenced by coupons to be attached.to the Bonds with full obligation on the part of the City -to pay interest at the same rate from and after the bond matur ity dates until the Bonds with interest are paid in full or monies are available in the Bond Fund for payment in full. Both principal of and interest on the Bonds shall be payable solely out of the special fund hereinafter created, and the Bonds shall be a valid claim of the holder thereof only as against said special fund and the fixed amount of the revenues of the waterworks utility, including •the system of sewerage as a part thereof, pledged to such fund, and shall not be a .general obligation of the City of Pasco. The Bonds., both princi- pal and interest, shall be payable in lawful money of the United States of America at the office of the City Treasurer of the City of Pasco, Washington, or at the fiscal agency of the State of Washington in the City of New York, New York, at the option of the holders thereof.. The Bonds shall mature serially, annually, in accordance with the following schedule, to wit: - 7 - Bond-,Numbers !Amounts Maturities -- 1 :to -5 inclusive $ 59000: -July 1, 1959 6 to 100 "' $ 52,000. July 11, 1960 11 to 18, "' $ 8',000 July 1, 1961 19 to 34, " $16,000 July 19, 1962 . 35 to 571, '° $17,.,000 July 1, 1963 52 to 69, t° $18,000 July 1, 1964 70 to 79, " $10,000 July 19 1965 80 to 90, " $11,000 July 11 1966 91 to 101-9 " $11,000. July 1, .196.7 102 to 1139, a $12,000 July 1, 1968 114 to 12°i:, " " $129 000 July 1,­1969 126 to 1389 $13,900 `July 1, 1970 139 to 152, " $141000 .July 1:, 1971 153 to 167, " $153,000 July 1, 1972 168 to 1823, " $159000 July 1, 1973 .183 to 197, ". $15,.000-. July 1, 1974 198 to 2141, " $17,000 July .1, 1975 215 to 231:1, " - ' $17,000. July 11, 1976 " 8 7 .232 to 249, -- $1 ,000 July 1, 197 • July 250 to 267$18000 J 1 1., 1978 268 to 2869 " $199000 July 19 ,1979 287 to 306; " . $20,000 July 1, 1980 '307 to. 326', ' " $20,000 July 1, 19,81, 327 to. 348, !°.- $22,000: July 19 1982 349 to.-371, ". $239000 July 19, 1983 372 to 395, " $24,000 July 19 1984 396 to 475., " $80,000 July 1, 1985 476 to 5609 " $85,000 July 1, 1986 -561 to 650,9 " $94,000 July 1, 1987 Section.6, The City of Pasco reserves the right to redeem any or all of the outstanding Bonds out of the revenues of the waterworks utility of the City, including -the system of sewerage as a part thereof, at par, plus accrued interest, on January 1, 1963, or on any semiannual interest payment date there- after, in :inverse numerical order, highest-numbers first, and reserves the right to redeem the bonds as a whole. for refunding purposes at the following redemption prices if called-at.the following times-, plus.accrued interest -,to date of redemption in each case, to wit: On`January l,' 1963, at $105.00 per each $100*pa'r value thereof On July.l,-.1963, at $104.50 per each $100 par value thereof On January 19 19649 at $104:00 per each $100 par value thereof On July 1, 1964, at $103.50 per each $100 par value thereof On January 1, 1965, at $103.00•per each $100 par-value thereof On July 1,,1965, at $102.50.per each $100,par value thereof On January 1, 1966, at $102:00 per'ea'ch $100 par value thereof On July 1, 1966, at $101,50 per each $100 par value thereof On January 1, 1967, at $101.00 per each $100 par value thereof On July 1,19679 at $100.50 per each $100 par.value thereof On January 1, 1968,•at.$100.00, and thereafter at par. Notice of-any call'for redemption.:of said Bonds prior to their stated: maturity date shall be published once in the 'official newspaper of the City, OWIC not less -than -thirty nor more than forty-five days prior to the date of redemp- tion, Notice of such call for redemption shall also be mailed to Terry Thompson F: Co., 901 Northern Life Tower, Seattle, Washington, or its successors, within the same period. Interest on any Bonds so called for redemption shall cease on the date fixed for such redemption upon payment of the redemption price into the "Water and Sewer Revenue Bond Fund, 1957," hereinafter created. .Section 7._ There is hereby created and established in the office of the City Treasurer a special fund to be known as the "Water and Sewer Revenue Bond Fund,, 1957," (hereinafter called the "Bond Fund"), which fund is to be drawn upon for the,sole purpose of paying -the principal of and interest upon. the Bonds from and after the dates thereof, and so.:long thereafter as Bonds are outstanding against the Bond Fund, the City Treasurer -of the City of Fasco_'shall. set aside and pay into the Bond Fund out of the gross revenues of the waterworks, utility, including the system of*sewerage as a."part,thereof, now belonging to or which may hereafter belong.to the City, including all additions, extensions and betterments thereof at any time made, a -fixed amount without regard to any fixed proportion, namely, an amount sufficient -to pay the principal of and interest on the Bonds as they respectively become due and to create the reserve hereinafter prescribed. -The gross revenues from said waterworks utility, including the system of sewerage as a part thereof, are hereby pledged to such payment and the Bonds shall constitute a charge, upon such revenues prior and superior to any other charges whatsoever, excluding charges for maintenance and operation, except that the lien and charge upon said gross revenues shall be subordinate and inferior to the prior lien and charge against the same for the outstanding "Special Fund Water -Sewage Revenue Bonds, Series.A." dated March. 1, 1944, "Special Fund Water -Sewage. Revenue Bonds, 1944-1946, Series B," dated January 1, 1946, and the "Water Revenue Bonds, 1948," dated March 1, 1948, and except, further, that the lien and charge upon 'said gross revenues for the Bonds t,/' shall be -on a parity with the lien and charge upon said gross revenues for the outstanding "Water and Sewer Revenue Bonds, 1954," dated January 1, 1954, and for any additional water and sewer revenue bonds that may be hereafter issued, pursuant to the provisions.of Section 13 of Ordinance.No.,768, as amended by .Ordinance.No. 774. - 9 - Section 8, The City Counci'1"and corporate .authorities of the' City of Pasco hereby declare that in creating the Bond Fund and fixing the;.amounts to be paid.into it. -as aforesaid, they have exercised due regard to the cost of operation and maintenance of the waterworks utility, including the system of sewerage as a part thereof, and. the City of Pasco has not bound., and will: -not bind and obligate itself to set aside,`.and pay into the Bond Fund a greater amount or proportion of the revenues of the utility than in the judgment•of•the City -Council will be,available over and above :such cost of maintenance and operation,; and the amounts pledged'for the payment of the outstanding "Special Fund Water. -Sewage Revenue Bonds-; Series A,1' dated March 1, 1944;_"Special Fund Water-SeW6ge Revenue'Bonds, 1944-1946, Series B,11 dated January.l, 1946; "Water Revenue Bonds, 1948,",dated,March 1,-1948; and "Water and Sewer Revenue Bonds, 1954, dated January 1, 1954'; and that no portion 'of the revenues of said utility.has been.pieviously pledged for any other indebtedness, except for -said outstanding "Special Fund.Vater=Sewage .Revenue Bonds.,,Series.A," dated March 1,' 1944; "Special Fund Water -Sewage Revenue Bonds, 1944-1946, Series B," dated January 1,-1946; "Water Revenue Bonds,. 1948,'" dated March 1, 1948; and "Water and Sewer Revenue Bonds, 1954," dated January 1,.1954, heretofore referred.to. r Section 9. The entire goss, revenues.of the waterworks utility of .the City,' including the system of sewerage..as a part thereof, and including all additions,.extensions and betterments thereof:at anytime_ made, as received, shall be deposited in the "Water and Sewer Revenue Fund" of,the City._ There , shall first be -paid out of said fund all expenses of/aintenance and operation of the utility. Maintenance and operation expenses shall include all expenses reasonably incurred in the normal operation of the utility as it exists on a day-to-day basis, including paying agents*.fees, 'i.f any, but shall not include the costof additions to or extensions of the utility or other -capital -improve- ments or depreciation0 'The Bond Fund is hereby -divided into two 'account's, namely; a "Principal and Interest Account" and, a "Reserve !Account." So long as Bonds are outstanding against the Bond Fund, the City Treasurer of the City of Pasco 10 - shall set: aside and pay.into the Bond Fund, after the payment of the expenses of maintenance and operation of the. utility, out of the. "Water and Sewer Revenue Fund," a fixed amount without regard to any fixed proportion, as follows: (a) Into the "Principal and Interest Account," monthly, beginning on January 1, 1958, one-seventh -of the first seven months* interest requirements on the Bonds, and monthly, beginning on .August 1, 1958, one -twelfth of the next ensuing twelve monthst requirements of both principal of and interest on the Bonds; and .(b) . Into the "Reserve -:Account," monthly,'beginning on January 1, 1958, not•less than,$585.00 until the total sum of $35,000.00 shall have been accumulated therein, which total sum shall be accumulated by no later than December 1, 1962'. The "Reserve Account" may be. accumulated from any other monies which the City of Pasco may have available.for such purpose, in addition. 'to using said revenues deposited in the "Water•and Sewer Revenue Fund.". The City further agrees that when said total sum of $35,000.00 has been paid into the "Reserve ,Account," it will at all times, except for withdrawals therefrom as author- ized herein, maintain that amount therein until there is a sufficient amount in the "Principal and Interest ;Account" and the "Reserve Account" to pay the' principal of and interest to maturity on all the outstanding Bonds. In the,event that there shall be a deficiency in the "Principal and Interest9ccount" in the :Bond Fund to meet the maturing installments of either principal or interest as the -case -may be, such deficiency shall be made up from the "Reserve-Account00 by the withdrawal of cash therefrom for that purpose. ,Any deficiency created in'the "Reserve .Account" by reason of any such withdrawal shall then be made up from the monies from the revenues of the waterworks utility, including the sewerage system as a part thereof, first available after making necessary provisions for the required payments into the "Principal and Interest Account." Monies -in the "Reserve Account" shall otherwise be held intact and may be applied against the last outstanding Bonds. All money in'the "Reserve Account," above provided for,shall be kept on deposit: in the official bank depository.of the City of Pasco or in any national.'bank as.trust funds for the holders.'of outstanding Bonds;. orshall-be invested in United States Government obligations, maturing noi.later than'one month.prior,to the••final maturity date of any outstanding Bonds... Interest earned on any.such investment or on such bank account shall be deposited in and become a part of the "Reserve'.Accougt" until there shall be the said sum of.$35,000.00 accumulated therein,'after which.such interest shall be deposited in the "Principal and Interest,Account.".;. Surplusmoniesin the "Water and Sewer Revenue.Fund," after making .-necessary provisions for the payment of the expenses of maintenance and opera- tion of the vtility..and the required deposits to the Bond Fund, may be used to make emergency repairs and/or.extensions.of and improvements to the utility' when certified by the'City Engineer to be necessary and economically feasible,• and/or for the redemption or purchase in the open market of outstanding Bonds. If-the-City shall fail to set aside and pay into the Bond Fund -the amounts which it has obligated itself by this.Section to set aside and pay therein,, the holder of any Bond may bring•.'suit against the City to compel it to do 'soe �r Section 10. The.City further hereby covenants and agrees with the owner and holder of,each of the Bonds, as.. follows: (a) That.it will-not-sell, lease, mortgage, or in any manner encumber or, dispose of all the properties Of the said waterworks utility, including the sewerage system as'.a part thereof, now belonging to or which may hereafter belong to it, including*all additions, betterments and extensions thereof at any time made, .•.unless'prov.isi.on is made for-payment into-the Bond Fund of a sum sufficient to-pay the principal of and interest on'all the'out ,.standing Bonds, in accordance with the terms thereof; and further hereby.binds itself irrevocably-not to mortgage, �sell,.lease or in.any manner dispose of any. part of the waterworks utility, including the system 'of sewerage as a part thereof, including. all additions,-betterments and extensions thereof at any time ;made, that is used, useful and material to the..oper.ation of said 'waterworks utility unless provision is made for replacement thereof or for payment into the Bond Fund of.an amount which shall bear the same ratio to the amount of outstanding Bonds as the revenue available for debt service for said Bonds for the twelve months preceding such sale, lease,.encumbrance.or dis- posal from the portion of the utility so"leased, encumbered or disposed of.bears to the revenue available for .debt service :for said Bonds. from the entire utility for the same period. Any such money so paid into the'Bond Fund shall be used-to retire outstanding Bonds at the,earliest-possible 'date. - 12. - (b) -That-it will maintain in good condition and operate said waterworks utility, including the system of sewerage as a part thereof, and will establish,. maintain and collect such rates as will produce gross revenues from the said waterworks utility, including the system of sewerage as a part thereof, sufficient to permit payment into the Bond Fund of the amounts required for.the payment -of the princi- pal of and interest.on the Bonds as they become.due and the amounts that are required to be paid into the "Reserve Account". therein.and, in addition.thereto, that it will pay all.costs of maintenance and operation, and taxes, and meet the debt service requirements of the outstanding "Special. .Fund Water -Sewage Revenue Bonds, Series A," dated March 1, 1944; "Special'Fund Water -Sewage Revenue Bonds, 1944-19.46, Series B," dated -January 1, 1946; "Water Revenue Bonds, 1948,11 dated March 1, 1948; and "Water and Sewer Revenue Bands, 1954,i1 dated January 1, 1954, and otherwise meet the obligations of the City as herein set forth. (c) That it will, while any of the Bonds remain out- standing., keep -proper books of accounts and records separate and apart from other accounts and records., in which complete and correct entries will be made of all transactions relating to the said waterworks utility, including the system of sewerage. as a part thereof, and it, will furnish the original purchaser of said Bonds, or any subsequent holder or holders thereof, complete operating and income statements of said waterworks utility, including the system of sewerage as a part thereof; in reasonable detail, covering any fiscal year not more than thirty days after the close of such fiscal year, and it will grant any holder or holders of at least twenty-five per cent (25%) of the out- standing Bonds the right at all reasonable times to inspectx said utility and all of the records, accounts and data of the City relating thereto. Such operating and income state- ments shall, include the .following items: (1) Balance sheet, including balance of all funds created by this Ordinance; (2) Statement of Cash Receipts and Disbursements; (3) Income and Expenses; (4) Insurance data; (5) Number of metered customers; number of unmetered customers; number of properties connection to the utility in last fiscal year; number of fire hydrants; number of applications for water and sewerage service on hand; (6) Gallons of water through master meter and gallons of water billed; estimate of gallons of water used for flushing of mains and fires and gallons of water unaccounted for; (7) A recapitulation of funds or accounts created by this Ordinance into which are put -moneys -derived from the operation of the utility or moneys derived from the sale of investments herein authorized, such analysis or recapi- tulation to show balance at beginning of period, deposits and withdrawals made during period and balance at end of period; also monthly deposit.requirements for funds during next succeeding fiscal period; - 13 - LO (8) Total: annual water and: sewer billings and ' average monthly billing 'per customer; (9) Rate schedule® Upon request of -any holder of any of said Bonds, it will also furnish to such holden a copy of the most recently completed audit of the Cityts'accounts.by the State Auditor of. Washington. (d) That -it will'establish, maintain and aollect.such rates and charges for water and for sanitary sewage service as long as'any of the Bonds are outstanding as.will make available for the payment of the principal.of and interest on all.such'Bonds as the'. -same shall become due an amount equivalent to at least 1,.4 times the average annual debt service requirement, both principal and".interest,:,for the then outstanding Bonds and ofIthe outstanding "Special .Fund Water -Sewage: Revenue Bonds, Series`.A,f1 dated March 1, x.944; "Special Fund Water -Sewage Revenue Bonds, 1944=1946, .Series B;" dated January 1.;1946; "Water Revenue Bond, 1948," dated March 1, 1948;.,and "Water and Sewer Revenue. Bonds, 1954:;" dated: January 1:;. 1954,. and of any bonds here after issued on -.'a' parity with the outstanding "Water 'and Sewer Revenue Bonds., 1954," and the Bonds in accordance with the'provisions:of ,Tt,ion_;13 of Ordinance No. 768" as . amended;"by. Ordinance No: ,774,. after,deducting ite necessary costs of maintenance and operation.and.taxes from the gross' revenues of its waterworks utili:ty,,including the system of -sewerage-' as a. part:.t}ereof. (e) That it will not furnish,water or sewerage service to any customer whatsoever free of charge and it shall, not later_ than sixty (60) days after the end of each calendar year, take.such.legal action as may be feasible to enforce collection of all collectible delinquent accounts .and, in addition thereto',.shall promptly avail•itself of its.util-. h ity lien rights, as set fortin RCW.35.21.290_and 35.67.200, et seq.,-and all acts amendatory thereof. (f) That.it will carry the types of insurance on its waterworks utility properties:in,the amounts normally carried by private water.or sewer companies engaged in the operation of water or sewerage systems; and. the, cost• of such insurance shall.'be considered a part .of operating and maintaining said utility. If; as, and when, the United States o.f America,.or some agency thereof, shall•provide for war risk insurance,'the City,further agrees,to take outand maintain such insurance on all or' such portions of said utility on which such war -risk insurance.may be written in an amount or amounts to cover adequately .the value thereof. (g) Tnat'so long as any -Bonds are outstanding it -will not impose any tax.or excise on the purchasers of.watei or any excise or tax -measured by the amount of water so used, - or sewerage services' furnished or the: amounts of - the bills ...payable for water so used''�or sewerage services furnished. (h) That it will maintain its corporate identity.and existence so long as any Bonds remain outstanding. (i) That it will"'not grant'any competing.utility ser- vice franchise and will use all legal means to prevent competition with its. said utility. 14 - form: No. Section 11, The Bonds shall.be in substantially the following $1,000.00 UNITED STATES OF :AMERICA STATE OF WASHINGTON. CITY OF PASCO WA�,TER AND SEWER REVENUE BOND, 1957 KNOW ALL MEN BY THESE PRESENTS that the City of Pasco, Franklin County, State of Washington, for value received, hereby promises to pay.to the bearer on the 1ST DAY OF JULY, 19the principal sum of -ONE THOUSAND DOLLARS together with interest thereon at the rate of five per ..cent (5%) per annum, payable semiannually on the .lst.days of January and July of each'year,.upon the presentation ,.and surrender of the -.attached interest coupons as they severally mature up to the bond maturity date and with full obligation on the part of the City to pay interest at the same rate, from.and after the bond maturity date.,- until this bond with -interest i•s paid in full, or until this bond, if callable, shall have been duly called for redemption and the redemption, price, including interest - to such. call date, deposited in the "Water and Sewer Revenue Bond Fund, 1957,11.of the City. Both.principal of and interest on this bond are payable in lawful money of the United States of.America at the office of the City Treasurer of Pasco, Washington, or at the fiscal agency of the State of Washington in the'City of New York, New York, at the option of the holder hereof, solely out of the special fund created by Ordinance No. and known as the "Water and Sewer Revenue Bond Fund,�,,1 (here- inafter called the "Bond Fund"), into which'fund the City of Pasco hereby irrevocably binds itself to 'pay certain . fixed amounts out of the gross revenues of -the waterworks utility, including the sewerage system as a part thereof, now belonging to or which may hereafter belong to the City, including all additions, replacements, extensions .and betterments now or at any time hereafter made or con- structed, without regard to any fixed proportion, namely, an amount.sufficient to pay the principal of and interest on this issue of bonds as they respectively become due, and to create a reserve, in the total -sum of $35,000.00, all at the times and in the manner set forth in Ordinance No,1�t�. The .bonds of this issue are not a general obligation of the City. - This bond is one of a total issue of $650,000.00 par value of bonds, all.of like date, -tenor and effect, except as to maturities, all payable from the said Bond - Fund, and all issued by.the City under and pursuant to the laws -of the State of Washington and Ordinance No 47 - 15 :- of the City for the purpose of obtaining the funds with which to pay the cost of carrying out a system or plan for making additions to'and betterments and extensions of the waterworks utility of'the City, including the. system of sewerage as -a part thereof. Reference,is made to said Ordinance as more.fully describing the covenants with and rights of holders of bonds of -this issue. The City of Pasco has -reserved the right to.redeem any or all of the outstanding bonds of.. -this issue out of the revenues. -of the waterworks utility of the City, including the system of sewerage as a part -thereof, at par, plus•accrued interest, on January 1, 1963,,or on any semiannual interest payment date thereafter, in inverse numerical order, highest numbers.fir.st., and -has reserved the right to redeem the bonds as a whole for refunding purposes at the following redemption prices if called 'at the following times, plus accrued interest to date of..redemption in_ each case, ' to wit On January 1, 19.63, at $105.00 -per each $100 par value thereof On -July 1, 1963, at $104.50*pe each,$100 par value thereof On January 1, 1964,. at $104.00 per each $160 paf value thereof. On July 1, 1964, at'.$103.50 per each $100,par.value. thereof On.January 1, 1965, at $103.00 per each 1$100 par value thereof On July 1, 19659 at $1.02.50 per each -.$100 par value thereof On January 1, 1966,..'at $-102.00 per each '$100 par value thereof On July'l, 1966, at $101.50-per•each $100 par. value thereof On January l., 1967, at $1016,00 per each $l00 par value thereof On July 1, 1967, at $100.50 per each $100 par value thereof On January 1, 1968, at $100.00, and thereafter at par. Notice of any call for redemption.of the bonds of this issue prior to their stated maturity date shall be pub= lished once in the official newspaper of the City, not less than thirty nor more than forty-five days prior to the.date of redemption. Notice of such call for redemption shall al.so.be mailed to Terry Thompson & Co.,, 901 Northern Life Tower; Seattle, Washington,'or'.its successors, within the same period. Interest on any bonds so called for redemption shall. cease on the date fixed.for such redemption upon pay- ment of the redemption price into.the Bond Fund. The bonds of%thisissue constitute a charge or lien upon the gross revenues of the waterworks utility of.:the City, including the system of sewerage as a part thereof, together with all additions thereto and betterments. and extensions and replacements thereof.at any time made, prior.and superior to any other charges whatsoever, excluding charges for main- tenance and operation of said utility, except that the charge' or lien upon said gross revenues for the bonds of this issue are subordinate and inferior to the prior charge or lien against the" -same for the outstanding "Special Fund Water - :Sewage Revenue.Bonds, Series A," dated Murch 1,*.1944, "Special Fund Water -Sewage Revenue Bonds, 1944-1946, Series. B," dated January 1, 1946, and the "Water Revenue.Bonds, 1948," dated March 1, 1948,'.and except further that the lien or charge upon said.gross revenues for the bonds of this issue shall be on a parity with the charge or lien upon such .'gross revenues for the outstanding "Water and Sewer Revenue. Bonds, 1954," dated. -January 1, 1954, and for any additional water and sewer revenue bonds that may be'hereafter issued in accordance -with -the provisions, of Section 13 of Ordinance No. 768, as -amended by Ordinance No. 774. 16 = The City of Pasco hereby covenants and agrees to and with the holders of this bond that it will keep and perform all covenants of this bond and of Ordinance No. 914 to be by it kept and performed, and it further covenants and agrees to maintain in good condition and to operate said waterworks utility, including the system of sewerage as a part thereof, and to establish, maintain and collect such rates and charges in connection therewith as will produce the gross.revenues necessary to meet the obligations,of the said City as herein set forth and as set.forth in Ordinance No. 914. It is hereby certified and declared that the bonds of this issue are issued pursuant to and in strict compliance ,with the Constitution and laws of the State of Washington and the ordinances of the City of Pasco., and that all acts, conditions and things required to be done precedent to and in the issuance of this bond have happened, been done and performed as required by law. IN WITNESS WHEREOF the City of Pasco, Washington, has caused this bond to be signed by.its Magor and attested by its Clerk and its corporate seal to be hereto affixed, and the interest coupons attached to be signed with the facsimile signatures of said officials this 1st day of -December, 1957. CITY OF PASCO, WASHINGTON BY. M A Y 0 R ATTEST: C L E R K The interest coupons attached to.1the Bonds shall be in substantially the following form: On the 1st day of (January) (July), 19 , THE CITY OF PASCO, WASHINGTON, uponlresentation and surrender of this coupon, will pay to bearer at the office of the City Treasurer the sum of TWENTY-FIVE DOLLARS ($25.00) (on Coupon No. 1, $29.16) in lawful money of the United States of America fromthe Special fund of the City known as "Water and Sewer. Revenue Bond Fund, 1957", said sum being six months' interest (seven months' interest on Coupon No. 1) then due on its "Water and Sewer Revenue Bond, 1957," dated December 1, 1957, and numbered ATTEST: C L E R K -17- Coupon No. CITY OF PASCO, WASHINGTON BY M A Y O R The"Bonds shall be printed on"'lithographed forms, shall be signed by. the May attested by the Clerk, and'shalf have the seal of the City of Pasco affixed thereto, and: thelnterest coupons shall bear the 'facsimile signatures of the Mayor -and the Clerk. Section 12. !All monies,derived from the sale of the Bonds.shall be. expended"solely for the purposes of carrying out the plan,or system of addi- tions to and betterments, and.extensi.ons of the waterworks utility of the City of Pasco, including.the system of sewerage as a part thereof, as set forth in Section 2 hereof, upon-certification.by the, City Engineer that;all work to date of payment has been completed_satisfactorly. Section 13. The provisions of this Ordinance shall constitute a " contract 'kietween 'the City' and the Holders of the Bonds herein authorized to be issued'and•no'amendments" hereto`, modifications hereof or. supplements hereto affecting in any manner the,.rights of the holders of outstanding Bonds shall be made-ur -less theg written" consent of the holders of not less than seventy- five per cent 05%) in aggregate principal amount of the outstanding Bonds shall have first_bee.n obtained. Section 14.. .Terry Thompson & Co., of Seattle, Washington,.has offered to purchase the Bonds ata price of'$91.00 per each $100.00 par value thereof, plus accrued interest from the date of issuance to the date,of delivery of the Borids,:.the purchaser to furnish the printed bonds at its -expense and'the. City to furnish the unqualified approving legal opinion of Messrs. Weter, Roberts & Snefelman, municipal bond counsel,of Seattle, Washington,, at -the Citytts expense.. The City Council. is of the opinion that.no better price .can.be obtained for the Bonds, and that."it is in the best inter- ests o.f the City to accept said offer and said'offer is hereby'accepted. The first -numbered $249,000.00 par.value of said Bonds.shall immediately upon their execution be delivered to Terry `Thompson & Co.,':Seattle, Washington, upon said:.purchaseres paying for the same in;accordance with its offer., and the remaining $401,000.00, par value thereof shall be delivered to said our- chaser,-upon`payment therefor, at'a date to be hereafter"fixed and mutually satisfactory to the. City and said.purchaser. The principal amounts received - 18 - from the sale of the Bonds shall be deposited -in the "Water and Sewer Construction Fund" of the City and shall be expended as aforesaid, and the accrued interest received shall be deposited in the Bond Fund. PASSED by'the City Council at a regular meeting thereof and APPROVED by the Mayor of the City of Pasco, Washington, this 3rd -'day of December, 1957. r MAYOR ATTEST: C I T Y C L E R K. APFRO ED )AS TO FORM C I T Y A T T .0 R N 'E Y 19 s SIGNATURE IDENTIFICATION AND NON -LITIGATION CERTIFICATE .1, HARRY V. CUSTER, hereby certify that I am the Mayor of the City of Pasco, Washington; and have been at all times since April 1, 1953 .1 further certify that ADAH M. PERRY is the Clerk of the City of Pasco, Washington, and has been at all times since j anuary 3. 1939 I further certify that I have executed $650,000.00 of "Water and Sewer Revenue Bonds, 1957," of the City of Pasco, Washington, all dated December 1, 1957, all in denominations of $1,000.00 each, and bearing interest at the rate of 5%.per ,annum, payable semiannually on January 1st and July 1st of each year. These bond's will mature serially, annually, in accordance with the following schedule, 'to,wit: Bond Numbers Amounts Maturities 1 to 59 inclusive $ 5,000 July 19 1959 6 to 10, $ 5,000 July 10 1960 11 to 189 $ 81000 July 1, 1961 19 to 349 '• $169000 July 19 1962 35 to 51, $17,000 July 1, 1963 52 to 699 $189000 July 1, 1964 70 to 799 $10,000 July 19 1965 80 to 90, $119000 July 19 1966 91 to 101, $119000 July 1, 1967 102 to 1139 $129000 July 1, 1968 114 to 1259 $12,000 July 1, 1969 126 to 138, $13,000 July 1,1970 139 to 152, $14,000 July 1; 1971 153 to 167, $15,000 July 1, 1972 168 to 182, " $15,000 July 1, 1973 183 to 1979 $159000 July 1, 1974 198 to 2149 $179000 July 1, 1975 215 to 231, $179000 July 1, 1976 232 to 249, $18,000 July 11 1977 250 to 2679 $18,000 July 1, 1978 268 to 2869 $19,000 July 1, 1979 287 to 306, $20,000 July 1, 1980 307 to 326) $20,000 July 1, 1981 327 to 348, $22,000 July 19 1982 349 to 371, $23,000 July 1, 1983 372 to 395, $249000 July 19 1984 396 to 475, $80,000 July 1, 1985 476 to 5609 " $859000 July 19 1986 561 to 650, $909000 July 19 1987 I further certify that I have signed each of the aforesaid bonds as Mayor of the City of Pasco, Washington, and that the coupons attached to the bonds each bear my facsimile signature. I further certify that ADAH M. PERRY has signed each of the aforesaid bonds as Clerk of the City of Pasco, Washington, and that the coupons attached to the bonds each bear the facsimile signature of ADAH M. PERRY as Clerk. I further certify that no litigation of any nature is now pending or, to my knowledge, threatened, restraining or enjoining the issuance, sale, execution or delivery of said obligations, or the fixing or collection of the revenues, rates and charges pledged to pay the principal of and interest on said obligation's, or the pledge thereof, or affecting in any way the right or authority of the City to pay said.obligations, and the interest thereon, or otherwise carrying out the terms and provisions -of Ordinance No. 914 of the City,, and the covenants and agreements therein, and each of any of them with respect to said obligations, or in any manner affecting the proceedingsand authority for the issuance,.sale, execution or delivery of said obligations, or affecting directly or indirectly the validity of the obligations or of any provisions made or authorized for their payment, or the power of the City to acquire and construct the waterworks utility improvements, or the corporate existence or boundaries of the City or the title of the present officers or any of them to their respective offices, and that none of the proceedings or authority for the issuance of said obligations has been repealed, revoked, rescinded, modified, changed or altered in any manner. SIGNED this 19th day of December, 1957. L. c�;, ,r,•' �t',,. ?� .SGP f �' . 4� _ � ,�. �'._ , . � - HARRY V. CUS`i'ER, Mayor of the City of Vasco, Washington - 2 - SIGNATURE IDENTIFICATION AND NON -LITIGATION CERTIFICATE 10 ADAH M. PERRY, hereby certify that I am the Clerk of the City of Pasco, Washington, and have been at all times since January.3, 1939 I further certify that HARRY V. CUSTER is the Mayor of the City of Pasco, Washington, and has been at all times since April 1, 1953 I further certify that I have executed $650,000.00 of "dater and Sewer Revenue Bonds, 1957," of the City of Pasco, Washington, all dated December 19 1957, all in denominations of $1,000.00, and bearing interest at the rate of 5X per annum, payable semiannually on January 1st and July 1st of each year. These bonds will mature serially, annually, in accordance with the following schedule, to wit: Bond Numbers Amounts Maturities 1 to 5, inclusive $ 51000 July 1, 1959 6 to 109 it$ 59000 July 1, 1960 11 to 180 $ 89000 July 19 1961 19 to 349 $16,000 July 19 1962 35 to 519 $17,000 July 1, 1963 52 to 69, .$18,000 July 1, 1964 70 to 790 $10,000 July 1, 1965 80 to 90, $119000 July 11 1966 91 to 101, $11,000 July 1, 1967 102 to 113, $129000 July 1, 1968 114 to 125, $12,000 July 1, 1969 126 to 138, $13,000 July 1, 1970 139 to 1521, $14,000 July 1, 1971 153 to 167, $150000 July 1, 1972 168 to 182, " $159000 July 19 1973 183 to 19779 $15,000 July 1, 1974 198 to 214, $17,000 July 1,. 1975 215 to 2319 $17,000 July 1, 1976 232 to 2411, $18,000 July 1, 1977 250 to 2679 $189000 July 19 1978 268 to 286, " $19,000 July 1, 1979 287 to 306, " $209000 July 1, 1980 307 to 3260 $20,000 July 1, 1981 327 to 34139 " $22,000 July 1, 1982 349 to 371, $23,000 July 1, 1983 372 to 395, $24,000 July 1, 1984 396 to 4751 " $80,000 July 1, 1985 476 to 560, it $859000 July 19 1986 561 to 6509 It$900000 July 19 1987 I further certify that I have signed each of the aforesaid bonds as Clerk of the City of Pasco, Washington, and that the coupons attached to the bonds each bear my facsimile signature. I further certify that HARRY V. CUSTER.has signed each of the afore- said bonds as Mayor of the City of Pasco, Washington, and that the coupons attached to the bonds each bear the facsimile signature of HARRY V. CUSTER as Mayor. I further certify that no litigation of any nature is now pending or, to any knowledge, threatened, restraining or enjoining the issuance, sale, execution or delivery of said obligations, or the fixing or collection of the revenues, rates and charges pledged to pay the principal of and interest on said obligations, or the pledge thereof, or affecting in any way the right or author- ity of the City to pay said obligations, and the interest thereon, or otherwise carrying ou,t the terms and provisions of. Ordinance No. 9.14 of the,.City, and the covenants and agreements therein, and each or any of them with respect to said obligations, or in any manner affecting the proceedings and authority.for the issuance, sale, execution or delivery of said obligations, or affecting directly or indirectly the validity of the obligations or of any provisions made or authorized for their payment, or the power of the City to acquire and construct the waterworks utility improvements,, or the corporate existence or boundaries, of the City or the title of the present officers or any of them to their respective offices, and that hone of the proceedings or authority for the issuance of said obligations has been repealed, revoked, rescinded, modified, changed or altered in any manner. SIGNc"D'this 19th day of December, 1957. r r. ADAN M. PERRY, Clerk of. t e City of Pasco, Washingto�i - 2 - r obligations, or in any manner affecting the proceedings and authority.for the issuance, sale, execution or delivery of said obligations, or affecting directly or indirectly the validity of the obligations or of any provisions made or authorized for their payment, or the power of the City to acquire and construct the waterworks utility improvements,, or the corporate existence or boundaries, of the City or the title of the present officers or any of them to their respective offices, and that hone of the proceedings or authority for the issuance of said obligations has been repealed, revoked, rescinded, modified, changed or altered in any manner. SIGNc"D'this 19th day of December, 1957. r r. ADAN M. PERRY, Clerk of. t e City of Pasco, Washingto�i - 2 - V I HEREBY CERTIFY that I am of the ' EALL� - )f �t! r x;` a� , and that I am personally Acquainted with HARRY V. CUSTER and ADAH M. PERRY, and that I know that they are now and were at the time of signing the :650,000.00 of "Muter and Sewer Revenue Bonds, 1957," of the City of Pasco, Washington, and the Signature Identification a n d Non -Litigation Certificates to which this certificate is attached, the duly acting Mayor and Clerk, respectively, of the City. I do further.identify the signatures of HARRY V. CUSTER and ADAH M. PERRY as_fMayor and Clerk, respectively, of the City of Pasco, Washington, on the above-described bonds and the Certificates attached, as being in all respects genuine and the signatures on'the coupons attached to said bonds as the true facsimile signatures of said officials. DATED at Pasco, Washington, thisi ,, day of December, 1957. PASCO BRANCH SEATTLE,_FIR.5T NATIONAL BANK PASCO. WASHINGTON 12-19-57 RECEIVED from Pasco City Treasurer .'�ater & Seger Revenue Bonds #1 to #249 inclusive Dollars $ FORM 44 PS To be shipped to Pacific National Bank attention 1,74.illard hla yell, Vice President � EA �. � � Ic1A�IGNf�.I o�/.• =�a AUTHORIZED SIGNATURE manager