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HomeMy WebLinkAbout1031 OrdinanceCITY OF PASCO, WASHINGTON ORDINANCE NO.1031 AN ORDINANCE amending Ordinance No. 1022 passed February 21, 1961, and entitled "AN ORDINANCE providing for the issuance of $60,000.00 par value of "Airport Revenue Bonds, 1961," for the purpose of obtaining a part of the funds with which to pay the cost of carrying out the plan and system for making additions to and betterments andextensions of the existing Munici- pal 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 . "; fixing the interest rates on said bonds, and providing:for the sale and delivery thereof to Richards, Merrill & Peterson, Inc., of Spokane, Washington. WHEREAS, the City of Pasco, Washington, by Ordinance No. 1022 passed by.the City Council and approved by the Mayor on the 21st day of February, 1961, provided for the issuance of $60,000.00 par value of "Airport Revenue Bonds, 1961," for the purpose of obtaining a part of the funds with which to pay the cost of carrying out the plan.and system for making additions to and.betterments and extensions of the existing Municipal Airport of the City, as adopted by Ordinance No. 1019, and provided for the calling of bids for the purchase of the bonds to be received by the City Clerk at the City Hall, Pasco, Washington, until. 8:00 o'clock p.m., on. March 7, 1961; and WHEREAS, bids for the purchase'of said bonds were duly called in the manner provided by said Ordinance No.1022 , and no bids for such purpose were received at the time and place fixed. for the receipt thereof; and WHEREAS, the City Council -thereafter entered. into negotiations for the receipt of negotiated bids for the purchase of said bonds; and WHEREAS, on March 21, 1961, Richards, Merrill & Peterson, Inc., of Spokane, Washington, offered to purchase said bonds on the terms hereinafter provided, which offer the City Council, deeming it to be in the best interest of the City, duly accepted on March 21, 1961; and WHEREAS, said bond purchaser requested that the date of issuance and maturity dates of said bonds be changed as here- inafter set forth, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN, as follows: Section 1. Section 1 of Ordinance No. 1022 passed by the City Council and approved by -the Mayor on the 21st day of February, 1961, is hereby amended to read as follows: "Section 1. For the purpose of obtaining a part of the funds necessary to carry out the plan and system for making additions to and bet- terments 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 denomina- tions of $1,000.00 each, shall be numbered from 1 to 60, inclusive, shall be dated April 1, 1961, and shall bear interest at the rates hereinafter set forth, payable semiannually on April 1 and October 1 of each year, interest to maturity to be evidenced by coupons to be attached to the Bonds, with full obligation on the part of the Cityto pay interest at the same rate or rates .`from and after the bond maturity dates until the Bonds with interest are paid in full. Both principal of and interest on the Bonds shall be payable in lawfpl 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, and shall bear, interest, in accordance with the following schedule: Interest Bond Numbers Amounts Rates Maturities 1 and 2 6n,00O 4 1/2/ April 1, 1962 3 and 4 ,000 4 1/2o April 1, 1963 5 and 6 ,000 1,000 4 1/2f April 1, 196+ 7 and 8 ,000 4 1/2f April 1, 1965 9 and 10 4 1/2f April 1, 1966 - 2 - Bond Numbers (Cont' d) 11 and.. 12 13. and 14 15 to 17,inc. 18 to 20, 21 to 23, " 2.4 to 26, 27 to;. 29., „ 30 to 32, 33 to 35, " 36 to 39, << .40 to 43, 44 to 47, 48 to 51, " 52 to 55, 56 to 6o,. " Section 2. Section 2 of:Ordinance No. QZ2 passed by the City Council and approved by the Mayor.on the 21st day of February, 1961, is hereby amended to read as follows; "Section 2. The City of Pasco reserves the righ o re eem 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 Air- port, on April 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 April 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 offi-. tial 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 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. Section 3 of said Ordinance No. 1022 is hereby amended to read as follows .. "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. -3 Interest Amounts Rates Maturities 2,000 4 1/2/ April 1, 1967 2,000 4 1/2f April 1, 1968 3,000 4 1/2% April 1, 1969 3,000 4 1/2o April 1, 1970 33000 4 1/2o April 11 1971 3,000 .4 3/4% April 1, 1972 3,000 4 3/4% April 1, 1973 3,000 4 3/4% April 1, 1974 3,000 4 .3,/4 o April 1, 1975 4,000 4 3/40 April i, 1976 4;000 4 3/4/ April 1, 1977 4,000 4 3/4% April 1, 1978 4 3/4f April 1,--1979 14,000 4,000 4 3/4% April 1, 1980 5,000 4 3/4a April 1, 1981" Section 2. Section 2 of:Ordinance No. QZ2 passed by the City Council and approved by the Mayor.on the 21st day of February, 1961, is hereby amended to read as follows; "Section 2. The City of Pasco reserves the righ o re eem 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 Air- port, on April 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 April 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 offi-. tial 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 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. Section 3 of said Ordinance No. 1022 is hereby amended to read as follows .. "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. -3 the gross revenues of the Municipal Airport of the.City a fixed amount, without regard to any fixed proportion, on or before the 20th day of each month, as follows: "(a) Into the 'Principal and Interest Account,' beginning with the month of April, 1961, 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 payable on the next principal payment date. "(b) Into the 'Reserve Account,' begin- ning 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 purpose, in addi- tion to using such revenues 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 prin- cipal 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 defi- ciency 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 -for that pur- pose. 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 Municipal Airport of the City first available after making necessary provi- sion for the required payments into the Bond Fund. "All money in the 'Reserve Account' above pro- vided for may be kept on deposit in the official bank depository of the City of Pasco or may be invested in direct obligations of the United - 4 - States Government having a guaranteed redemp- tion 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 purchase. 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:, r ,� Section 4. Section 6 of said Ordinance No. 1022 is hereby amended to read as- follows,: "_Section 6. The.Bonds shall be in substan- tial y'-he: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 ,Pas,co, a municipal corporation of the State of Washington, for value received, promises to pay,to bearer on.the 18T DAY OF APRIL, 19 , the principal sum of ONE THOUSAND DOLLARS together with interest thereon at the rate of PER CENT ( %) per annum, --E- payable semiannua y on the isdays of April. and October of each -year upon the presenta- tion 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'). - 5 _ 1 "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, 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 11022 , as amended by Ordinance No. 111031 , 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 April 1, 1966', or on any subsequent interest payment date, at par, plus accrued interest to date of redemp- tion. "The City of Pasco reserves the right to, redeem the bonds of this'issue ash a.whole, solely -for refunding purposes, on.April 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 Richards, Merrill & Peterson, Inc . , Old National Bank Building Spokane 1, Washington, within the same period. Interest on any of the bonds of this issue so called for redemp- tion ,shall cease on the date fixed for such redemption upon payment of the redemption price into the Bond Fund. "The bonds of this issue constitute a charge or lien upon the gross revenues from the Municipal Airport of the City prior and superior to any other charges whatsoever, excluding charges for maintenance and opera- tion, 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 -provi- sions of Section 7 of Ordinance No. 1`022, as amended by Ordinance No. 1031. - 6 - f1j'Gross revenues from the Municipal Airport of the -City' have been defined in Ordinance No. 11622 ,- as amended by Ordinance No. Y031 , to incline the gross revenue derived from ownership, control, use and operation of the Airport and all Airport facilities and struc- tures thereon and used and operated. in connec- tion 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, build Ings, 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 J' , as amended by Ordinance No. ' 1031, - to be by it. kept and performed, and iE- urther 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 and1Q�, as amended by Ordinance No. f081. "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, conditionsand`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 14ITNESS 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 facsimile signatures of said officials this 1st day of April., 1961. ATTEST: CLERK CI-TY.OF PASCO, WASHINGTON r BY MAYOR - 7 - Coupon No. "On the 1st day of (April)(October, 19 , the CITY OF PASCO, WASHINGTON, upon presenf-a-- 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 Statesofo kerica 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 Bonds, 1961,' dated April 1, 1961, and num- bered CITY OF PASCO, WASHINGTON BY MAYOR ATTEST: "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 5. The action of the City Council in accept- ing the offer of Richards, Merrill & Peterson, Inc., of Spokane, Washington, to purchase the said. $60,000.00 par value of "Airport Revenue Bonds, 1961," on May 21, 1961, at a price of $98.00 per each $100.00 par value, plus accrued interest to the date of delivery of the bonds, the City to furnish the printed bonds and to pay for the approving legal opinion of Weter, Roberts & Shefelman, municipal bond counsel of Seattle, Washington, is hereby ratified and confirmed, and the proper City officials are hereby authorized and directed to cause said bonds to be printed., executed and delivered to said purchaser upon payment therefor in accordance with said, offer. -8 PASSED by the City Coun6il of the City of Pasco, Washington, at a regular meeting thereof, and APPROVED by the Mayor, this 4th day of April, 1961. MAYOR ATTEST: APPROVED AS TO FOAM:: / �4 at tit / /' / 9 4 l (-'o i -v C 8 N - 9 - I, ADAH M. PERRY, City Clerk of Pasco, Washington do hereby certify that the attached is a true and correct copy of ORDINANCE NO. 1031 as passed and published and now on file in this office. The attached copy of Ordinance No. 1031 consists of nine (9) pages. City of Pasco, Wast es 6/11/63