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HomeMy WebLinkAbout1022 OrdinanceCITY OF PASCO, WASHINGTON ORDINANCE NO. AN ORDINANCE providing for the issuance of'$60,000.00 par value of "Airport Revenue Bond; 1961,11 for the purpose of obtaining a part of the funds with which to pay the cost of carrying out the plan and system for mak- ing additions to and betterments and exten- sions of the existing Municipal Airport of the City, as adopted by Ordinance No. 1019; fixing the form, date, maturities, maximum interest rate, covenants and terms of said bonds.; and providing for the calling of bids for the' sale ' thereof . WHEREAS, the City of.Pasco, Washington, by Ordinance No. 1019, passed by. the City Council and approved by the Mayor on the 3rd day of January, 1961; specified and adopted a plan and system for making additions to and betterments and exten- sions of the existing Municipal Airport of.the City and author- ized the issuance and -sale of airport revenue bonds in the amount of not to exceed $60,000.00 par value to provide a part of the funds with which to pay the cost of acquiring, construct- ing and making said additions- to and betterments and extensions of the existing Municipal Airport; and WHEREAS, the City Council deems it to be in the best interests of the City that the entire $60,000.00 par value of authorized airport revenue bonds be issued and sold to provide a part of.the funds necessary to carry out said plan.and system;, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN, as follows: Section 1. For the purpose of obtaining apart of the funds necessary to carry out the plan and system for making additions to and betterments and extensions of the existing Municipal Airport, as adopted by Ordinance No. 1019, there shall be issued and sold $60,000.00 par value of "Airport Revenue Bonds, 1961" (hereinafter called the "Bonds"). The Bonds shall be in denominations of $1,000.00 each, shall be num- bered from -1 to 60, inclusive, shall be dated March 1, 1961, and shall bear interest at a rate or rates not to exceed 6% per annum, payable semiannually on January 1 and July 1 of each year, with the first interest coupon to be payable on January 1, 1962, cover- ing the period from March 1, 1961, through December 31, 1961, 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 or rates from and after the bond matur- ity dates until the Bonds with interest are paid. in full. Both principal of and interest on the Bonds shall be payable in law- ful money of the United. States of America at the office of the Treasurer of Pasco, Washington, solely out of the "Airport Revenue'Bond Fund, 1961" (hereinafter called the "Bond Fund"), created and established by Ordinance No. 1019. The Bonds shall mature serially, in accordance with the following schedule: Bond Numbers Amounts Maturities 1 and -2 12,000 July 1; 1962 3 and 4 2,000 July 1, 1963 5 and 6 2,000 July 1, 1964 7 and 8 2, 000 July 1, 1965 9 and 10 2,000 Ju ly 1, 1966 11 and 12 2,000. July 11 1967 13 and 14 2,000 July 1, 1968 15 to 17, incl. 3,000 July 1, 1969 to 205 if18 3,000 July 1, 1970 ^21 to 23, " 3,000 July 1, 1971 24 to 26, " 3,000 July 1, 1972 27 to 29, " 3,000 July 1, 1973 30 to 32, " 3,000 July 1, 197 33 to 35, ,000 July 1, 1975 36 to 39, ,000 July 1, 1976 40 to 43, 4,000 July 1, 1977 44 to 47, 4,000 July 1, 1978 48 to 51, " 4,000 July 1, 1979 52 to 55, " 4,000 July 1, 1980 56 to 6o, " 5,000_. July 1, 1981 IW.E Section 2. The City of Pasco reserves the right to redeem the Bonds as a whole, or in part in inverse numerical order, solely _from net earnings and revenues to be derived from the operation and maintenance of the Municipal Airport, on July 1, 1966, or on any.subsequent interest payment date, at par, plus accrued interest, to date of redemption. The City of Pasco reserves the right to redeem the Bonds as a whole, solely,for refunding purposes, on July 1, 1971, or on any subsequent interest payment date, at par, plus accrued interest to date of -redemption. Notice of any call for redemption of any of the Bonds prior to their stated maturity dates shall be published at least` once in.the official newspaper of the City not less than 30 nor. more than 45 days prior to the call date and notice of said intended redemption shall also be mailed to the original pur- chaser of the Bonds 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 Bond Fund. Section 3. The Bond Fund is hereby divided into two accounts, namely, a "Principal and Interest Account" and a "Reserve Account." So long thereafter as Bonds are outstanding against such fund, the Treasurer of the City of Pasco shall.set aside and pay into such fund out' of the gross revenues of the Municipal Airport of the' City a 'fixed- arriount,­without regard to any fixed proportion, on,or before the .20th day'of each month, as follows: (a) Into the,-!'Pr'incipal and Interest Account," beginning with the month of April, 1961, one -ninth of ,the amount of interest to become due and pay- able on January 1, 1962, upon which shall be credited the accrued interest received from the sale of theBonds to be deposited into said account, and, beginning with the month of June, 1961, one - twelfth of the amount of. both princi.pel and interest - 3 - to become due and payable on June 1, 1962, and, continuing thereafter as long as any of the Bonds are outstanding and unpaid, an amount equal to at least one-sixth of the interest to' become due and payable on the next interest payment date and at least one -twelfth of the principal of the Bonds to become due and pay- able on the next principal payment date. (b) Into the "Reserve Account," beginning with the month of.April, 1961, at least $85.00 until a total reserve of $5,100.00 shall have been accumulated therein, which total reserve shall be accumulated by no later than March 20, 1966. The "Reserve Account" may be accumulated from any other moneys which the City of Pasco may have available for such pur- pose, in addition to using such revenue's therefor. The City further agrees that when said.required amounts have been paid into the "Reserve Account," it will, at all times, except for withdrawals therefrom as authorized herein, maintain those amounts therein until there is a sufficient amount in the Bond Fund, including the "Reserve Account" therein, to pay the principal of and interest on the Bonds to the final maturity thereof, at which time the money in the Bond Fund, including the "Reserve Account" -therein, may be used to pay such principal and interest. In the event that there shall be a deficiency in the Bond Fund to meet maturing installments of either principal or interest, as the case may be, on the Bonds, such deficiency shall be made up from the "Reserve Account" by the withdrawal of cash therefrom tr that purpose. Any deficiency created in the "Reserve Account" by reason of any such withdrawal shall then be made up from the moneys from the revenues of the MunIDIPRI:Alr_�il s �b�tof the City first available after making necessary provision for the required payments into the Bond Fund. All money in the "Reserve Account" above provided for may be kept on deposit in the official bank depository of the - 4 - City -of -Pasco or may be invested in direct obligations of the United States Government having a guaranteed redemption price prior to -maturity or maturing not later than twelve years from date�of purchase and, in no event, maturing later than the last maturity of the Bonds outstanding at the time of such pur- chase. Interest.earned on any such investment or on such bank deposit shall be deposited in.and become a part of the "Reserve Account" until the total required reserve amount shall have been -accumulated therein, after which such interest shall be deposited in the "Principal and Interest Account." Section 4. The gross revenues from the. Municipal Airport of the City are hereby pledged to such payments, and the Bonds shall constitute a charge or lien upon such revenues prior and superior to any other charges whatsoever, excluding charges for maintenance and operation, except that the charge or lien u.pon.such gross -revenues for the'Bonds-shall be on a parity with the charge or lien upon such gross revenues for any addi- tional -and/or refunding revenue bonds which may be hereafter issued on a parity with the Bonds, in accordance with the provi- sions of Section'7 hereof. '.'Gross re,.venues from the Municipal Airport' o,f the City'.' are herein defined to include the gross revenue derived from its ownership, control, use and operation of the Airport and all Airport facilities and structures thereon and used and operated in connection therewith, including, but not being lim- ited to, fees charged for all uses of the Airport and fleilities, rentals derived from leases of part or all of the Airport, buildings, and any or all air navigation facilities thereon, fees derived from concessions granted, and proceeds of sales of part or all of the Airport and any or all buildings and struc- tures thereon or equipment..,therefor. - 5 =. Section 5. .'The City of Pasco hereby covenants and agrees with -the owner and holder•of each Bond at 'any time out- standing, as follows: (a) That it will establish, maintain and collect such rates, charges, fees, rentals and sales prices in connection with the maintenance arid -operation of .the Municipal Airport. of the City so long as any Bonds,and any additional and/or refunding revenue bonds hereafter issued on a parity of lien with the Bonds, in accord- ance with the provisions of Section,7 hereof, are outstanding, as will make available for the .payment of the principal of and interest.on such bonds as'the same shall accrue an amount equal to at least 1.40 times the average annual debt service, both principal and interest, of said bonds, after deducting the costs of main- tenance and operation of said Municipal Airport of'the City from the gross revenues from the Municipal Airport of the City. (b) That it will, at all times, maintain and keep the Municipal.Airport of the City in . good repair, working -order and condition, and also will at all times operate such Airport and the business in connection therewithin an efficient manner and at a reasonable cost. . (c) That it will not sell, lease, mortgage or in any manner encumber or dispose of all the property of the Municipal.Airport of the City unless provision is made for payment into the Bond Fund of a sum sufficient to pay the principal of and interest on all Bonds at any time outstanding, and that it will not sell, lease, mortgage or in any manner encumber or dispose of any part of the property.of said Airport that is used, useful and material to the operation thereof unless provision is made for replacement thereof or for payment into the Bond Fund of the -total amount of revenue received, which shall nottbe -less than,an• amount which shall bear the.same_.ratio-to the amount of outstanding Bonds as the revenue available for debt service lfor such •out;sta.nd- ing Bonds.f_or the twelve months,`prededi.ng such sale, lease, •encumbr'ance or, disposal from the portion of the Airport sold, leased, encumbered or disposed.•of.bears to the revenue available for debt service for such Bonds from the entire Airport for the same period. Any. such money so paid into the Bond Fund shall be used to retire such outstanding Bonds at the earliest possible date. (d) That it will while any of the Bonds: remain outstanding keep proper and separate accounts and records in which complete and - 6 - r• separate entries shall be made of all trans- actions relating to its said Airport and it will,furnish the original purchaser or pur- chasers of the Bonds or any subsequent holder or -holders thereof, at the written request of such holder or holders, complete operating and income statements of said Airport in rea- sonable detail covering any calendar year not more than ninety (90).days after the close,of such calendar year, and it will grant any holder or holders of at least twenty-five per cent (25.x) of the outstanding Bonds the right. at all reasonable times to inspect the entire Airport -and all records,. accounts and data of the City relating thereto. Upon request of-. any holder of any of said Bonds, it also will furnish such holder atopy of the most recently completed audit of the City's accounts by -the -State Auditor of Washington. (e) That it will carry the types of insur- ance on its Airport properties in the amounts normally carried by private operators engaged in the operation of private airports, and.the cost of such insurance shall be considered a part of operating and maintaining said Airport. If, as, and when, the United States of America or some agency thereof shallprovide for war risk insurance, the City further agrees to take out and maintain such insurance on all.or such portions of said Airport on which such war risk insurance may be written in an amount or amounts to cover adequately the value thereof. (f) That it will promptly pay all costs of maintenance and operation.of the Municipal.. Airport of the City and otherwise meet thee obligations of the City as herein set forth. Section 6. The Bonds shall be in substantially the following form: No. $1,000.00 UNITED STATES OF AMERICA STATE OF WASHINGTON CITY OF PASCO AIRPORT REVENUE BOND, 1961 KNOW ALL MEN BY THESE PRESENTS: That the City of Pasco, a municipal corporation of the State of Washington, for value received, promises to pay to bearer on the 1ST DAY OF JULY,.19 , the principal sum of, - 7 - ONE THOUSAND DOLLARS together with interest thereon at the rate of PER CENT ( moo) per annum, payaUlee semiannually on the lst days of January and July of each year upon the presen- tation 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, is paid in full. Both principal .and interest are pay- able in lawful money'of the United States of America at the .office. of the Treasurer of Pasco, Washington., .solely out of the special fund of the City known as the "Airport Revenue Bond Fund, 1961," created by Ordinance No. 1019 of the City (hereinafter called the "Bond Fund"). This bond is one of a. total issue of $60,000.00 par value of bonds, all of like date, tenor and effect, except as to maturi- ties (and interest rates if more than one interest rate is bid), all payable from the Bond Fund and all issued by the City of Pasco under and pursuant to the laws of the State of Washington and Ordinances Nos. 1019 and o y y of the City. Reference is made to said ordinances as more fully describing the covenants with and rights of holders of bonds of this issue. The City of Pasco reserves the right to redeem the bonds of this issue as a whole, or in part in inverse numerical order, solely from net earnings and revenues to be derived from the operation and maintenance of the Municipal Airport, on July 1, 1966, or on any subsequent interest payment date, at par, plus accrued interest to date of redemption. The City of Pasco reserves the right to redeem the bonds of this issue as a whole, solely for refunding purposes, on July 1, 1971, or on any subsequent interest payment date, at par, plus accrued.interest to date of redemption. Notice of any call for redemption of any of the bonds of this issue prior to their stated maturity dates shall be published at least once in the official newspaper of the City not less than 30 nor more than 45 days prior to the call date and notice of said intended redemption shall also be mailed to the original purchaser of the bonds of this issue within the same period. Interest on any of the bonds of this issue so called for redemption shall cease on the date fixed for such redemption upon payment of the redemp- tion price into the Bond Fund. MM The bonds of this issue constitute a charge or lien upon the.gross revenues from the Municipal Airport of the City prior.and super- ior to any other charges,whatsoever, excluding charges for maintenance and operation, except that the charge or lien upon such gross revenues for the bonds of this, issue shall be on a parity.with the charge.or lien upon such gross-revenues for.any additional.and/or refunding revenue;bonds which may be hereafter issued' on a'parity with the bonds of this issue, in accordance with the provisions of Section 7 of Ordinance No. LL?/2/ "Gross revenues from the Municipal Airport of the City" have been defined in Ordinance No . 0-YV o include the gross.revenue derived from its ownership, control, use and'operatioh of the Airport and all Airport facilities and structures thereon and.used and operated in con- nection therewith, including, but-not being limited to, fees charged for all uses of the Airport and facilities, rentals derived from leases of-part or all. of the Airport, buildings, and any or all air navigation facilities thereon, fees derived from concessions granted, and proceeds of sales of part or all of the Airport and any or all buildings and structures thereon or equipment' therefor. The City of.Pasco hereby covenants and agrees with the holder of this bond that it will keep and perform all covenants of this bond and of Ordinances Nos. 1019 and VOYVto be by it kept and performed, and it further covenants and agrees to maintain in good condition and to operate the Municipal Airport of the City and to establish, maintain -and collect such rates, charges.,.fees, rentals and sales prices in con- nection therewith as will produce the gross revenues necessary to meet the obligations of the City as herein set forth and as set forth in Ordinances Nos. .1019 and jo-✓� 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 ordi- nances of the City of Pasco, and all acts, conditions and things required to be done pre- cedent to and in the issuance of this bond have happened, have been done and have been performed as required by law. IN WITNESS WHEREOF, the City of Pasco, Washington, has caused this bond to be signed by its Mayor and attested by its Clerk and its corporate seal to be hereto affixed and the interest coupons attached to be signed with the - 9 - facsimile signatures of said officials this 1st day of March, 1961. CITY OF PASCO, WASHINGTON BY MAYOR ATTEST: Coupon No. On the lst day of (January)(July), 19 , the CITY OF PASCO, WASHINGTON, upon presenfaa- tion and surrender of.this coupon., will pay to .bearer at the office of the City Treasurer'the sum of DOLLARS ($ in lawful money of the United States oT America from the special fund of the City known as the "Airport Revenue Bond Fund, 1961," said sum being six months' interest then due on its "Airport Revenue Bond, 1961," dated March 1, 1961, and numbered CITY OF PASCO, WASHINGTON BY MAYOR ATTEST: CLERK The Bonds shall be printed -on lithographed forms, shall be'signed by the Mayor and attested,by the Clerk, and shall have the seal of the City of Pasco affixed thereto, and the coupons shall bear the facsimile signatures of the Mayor and the. Clerk. Section 7. The City covenants and agtees that it will not hereafter issue any airport revenue bonds which will constitute a charge or lien against the gross revenues of the Municipal Airport of the City prior to or on a parity with the charge or lien against the same.for payments required to be made into the Bond Fund, except that the City reserves the right to issue additional and/or refunding -airport revenue bonds, 10 which will constitute a charge or lien upon the gross revenues of the Municipal Airport of the City on -a parity of lien with the Bonds, if the following conditions shall be met and complied with at the time of the issuance of such additional and/or refunding bonds, to wit: (1) Allpayments then required by this Ordinance pertaining to the Bonds and any ordinance hereafter enacted pertaining to additional parity.bonds hereafter issued and then outstanding shall have been made into the Bond -Fund and maintained intact therein; and (2) The revenues of the Municipal Airport of the City for any twelve months out of the immediately preceding eighteen months' period, plus the additional revenue anticipated to be received,froin thei proposed improvement in connection Lith which such additional airport revenue bonds are to be issued, are suffi- cient, after.deducting the. normal costs of maintenanceof the Airport,.to equal at least 1.40 times tne average annual -principal and interest, requirements of all then outstanding airport revenue bonds,`including the Bonds, and of the additional and/or refunding bonds proposed.to be so issued. Such determination of the sufficiency of the revenues shall be made and certified to by an independent pro- fessionAl registered engineer experienced with municipal airports and licensed to practice in the State of 'fiashington, and approved in writing by Terry Thompson .& Co., .Seattle, Washington, PROVIDED, HOWEVER, that if such additional bonds.proposed to be so issued are additional bonds _promo 4 De so issue a are, for the sole purpose of refunding outstanding airport revenue bonds; such certification of coverage shall. not be required if the amount required for payment of -the principal and interest in each year for the refunding bonds is not increased over the amount required for the bonds to be refunded thereby and the maturities of said refunding bonds are not extended beyond the maturities of the bonds to be refunded thereby; and. (3)' The ordinance authorizing the issuance of such'additional bonds shall provide that an amount equal to 'the. average annual debt service of the additional bonds proposed to be issued shall be accumulated as.an additional reserve in -the Bond Fund, said additional amounts to be accumulated by monthly deposits commencing not later than one month after the date of issuance of the bonds and to be accumulated within five. years after the date of•issuance and said reserve to be maintained - l l .- in such amounts so long as any of said addi- tional bonds are outstanding to the last maturity thereof, PROVIDED, HOWEVER, that in the case of refunding bonds the ordinance authorizing the issuance of such refunding bonds shall provide that the money in the "Reserve Account" for the bonds to be refunded shall be transferred to the "Reserve Account" in the Bond Fund,* or.that the moneys in the "Reserve Account" for the bonds to be refunded shall be used to redeem such bonds, in which event an amount equal to the average annual debt service for the refunding bonds proposed to be issued shall be accumulated as a reserve in the same manner and within the same times as set forth herein for additional revenue bonds. Section 8. The City `Clerk of the City of Pasco; Washington, is hereby directed to publish once in the lltw J and once in The Daily Journal of Commerce of Seattle, Washington, at least ten days prior to the sale date, a Notice of Bond Sale of the Bonds, calling for bids for the. purchase thereof to be received by the City Clerk at the City Hall, Pasco, Washington, until 8:00'o'clock p:m.., on March 7, 1961, at which time all bids will be publicly opened by the City Clerk and considered at•the meeting of'the City Council of the. City of Pasco then to be held in the City Hall., Bidders are invited to submit a bid for the purchase of the Bonds fixing the interest rate or rates that the same shall bear not in excess of six per cent (6) per annum. The bids shall specify either (a) the lowest rate or rates of interest and premium above par at which the bidder will purchase the Bonds, or (b) the lowest rate or rates of interest at which the bidder will purchase the Bonds at par, or (c) the lowest rate or rates of interest at which the bidder will purchase the Bonds at a discount of not more than 3%. All interest rates bid must be in multiples of not less than 1/8 of l%. All Bonds maturing on the same date must bear the same single interest - 12 - rate. The purchaser must pay accrued interest from the date of issuance of. the Bonds to the date.of their delivery. Each bidder shall seal -his bid in an envelope with a good -faith deposit in the form of a.certified or cashier's check made payable to the Treasurer of the City -of Pasco in the amount of at least 5% of the amount of his bid. Good -faith deposits of unsuccessful bidders.wll be returned when bids are evaluated and that of the successful bidder, if any,.will be retained for forfeit to the City in the event such 'successful bidder shall fail or refuse to accept the Bond's within• 35 days after the acceptance of his bid if the same are ready for delivery. Each bid shall show the total amount of interest to be paid over the life of the Bonds from the date of issuance, less the premium, if any, or plus the discount, if any, and the effective interest rate over the life of the Bonds. The City reserves the right to reject any or all bids submitted and to waive any informality or irregularity in the bidding. The Bonds will be'delivered to the purchaser thereof in*Pasco, Washington, or at such other place as the purchaser and the City shall mutually agree upon. The Bonds will be furnished by the City and will be sold -With the opinion of Weter, Roberts & Shefelman, municipal bond counsel of Seattle, Washington, approving the legality of the same, all without cost to the purchaser. A no -litigation certificate will be.includ.ed in the closing papers. PASSED by the City Council of the City of Pasco, Washington, at a regular meeting thereof,and APPROVED by the Mayor; this 21st day of February, 1961. MAYOR 13 -