HomeMy WebLinkAbout1070 OrdinanceCITY OF PASCO, WASHINGTON
ORDINANCE N0, y70
AN:ORDINANCE providing for the issuance
of 4600;000:00 par value of "Water and
Sewer Revenue Refunding Bonds, 1963," to
obtain the'funds'wth which to pay, retire
and.c.an6el $600;000.00 par value of out-
standing "Water and Sewer Revenue Bonds,
1957, of the City; creating a special
bond.redemption fund;,.fiking the date, form,
maturities, interest rates, terms and cove-
nants of, said -bonds; and providing for the
sale and delivery of said bonds to Terry
Thompson & Co., Seattle, Washington.
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, pursuant
to the provisions of Chapter 193 of the 1941 Session Laws of
the State of Washington (being.RCW 35.67.320 et seq.); 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, $800,000.00 par value of "Water
and Sewer Revenue.Bonds, 1954"; and
WHEREAS, by Section 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
shalt 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
1
CITY OF PASCO, WASHINGTON
ORDINANCE N0, y70
AN:ORDINANCE providing for the issuance
of 4600;000:00 par value of "Water and
Sewer Revenue Refunding Bonds, 1963," to
obtain the'funds'wth which to pay, retire
and.c.an6el $600;000.00 par value of out-
standing "Water and Sewer Revenue Bonds,
1957, of the City; creating a special
bond.redemption fund;,.fiking the date, form,
maturities, interest rates, terms and cove-
nants of, said -bonds; and providing for the
sale and delivery of said bonds to Terry
Thompson & Co., Seattle, Washington.
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, pursuant
to the provisions of Chapter 193 of the 1941 Session Laws of
the State of Washington (being.RCW 35.67.320 et seq.); 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, $800,000.00 par value of "Water
and Sewer Revenue.Bonds, 1954"; and
WHEREAS, by Section 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
shalt 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:
"(a) That all payments required to be
made into the bond redemption funds for the
outstanding 'Special Fund Water -Sewage
Revenue Bonds, Series A,' dated March 1, 1944,
the 'Special Fund Water -Sewage Revenue Bonds,
1944-1946, Series B,' dated January 1, 1946,
and the 'Water 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 'Wates and. Sewer
Revenue Bond Fund, 19541; 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.funds 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.utility, including the sewerage
system. as apart thereof, including the
additional revenues reasonably anticipated
>t,o be received as a result_ .of the making of
'the_ improvements in connection with which
the additional revenue bonds are proposed
to be issued, shall be deemed sufficient,
after the payment of operation and mainten-
ance 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 bonds 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.certified to by either a certified
public accountant or professional engineer
experienced in municipal utilities and
licensed to.practice in the State of Wash-
ington; PROVIDED, HOWEVER, that this cer-
tificate shall not be required in the event
that the additional bonds proposed to be so
issued are issued for the purpose of re-
funding outstanding Water Revenue Bonds or
Water and Sewer Revenue Bonds and the aver-
age annual debt service requirements of such
proposed additional revenue bonds are not
increased over the requirement for the bonds
being so refunded."; and
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WHEREAS,, the City of Pasco, pursuant to Ordinance No..
914, passed December 3, 1957, as amended by Ordinance No. 920,
passed January 7, 1958, heretofore issued under date.of December
1, 1957, $650,000.00 par value of "Wates and Sewer Revenue
Bonds, 1957," which bonds were issued on a parity of lien with
said "Water and.Sewer Revenue -Bonds, 1954," pursuant to the
provisions of.Section 13 of Ordinance.No. 768, as amended by
Ordinance No. 774, $616,000.00 par value of said "Water and
Sewer Revenue Bonds, 1957," being presently outstanding, of
which $600,000.00 par value.will be outstanding on January 1,
1963, after the application of moneys presently on hand in.the
"Water and Sewer Revenue Bond Fund, 1957," toward the payment
of said bonds, all of which outstanding bonds bear.interest at
the rate of 5% per annum and are callable for refunding purposes
on January 1, 1963, at $105.00 per each $100.00 par value
thereof; and
WHEREAS, Terry Thompson & Co.,•of Seattle, Washington,
heretofore submitted an offer to purchase $600,000.00 par value
of refunding bonds at par to bear interest at rates varying,from
3 o to A %, per annum, ' the' proceeds of which would be used to
take up, cancel, retire and refund said outstanding "Water and
Sewer Revenue Bonds, 1957," whereby an interest saving•will be
realized by the City, and there is presently on hand in the
"Reserve Account" in the "Water and Sewer Revenue Bond Fund,.
1957," sufficient amounts to pay the call premium and all ex-
penses connected with the issuance of such refunding,bonds; and
WHEREAS, the City Council hereby finds and.declares
that all payments required to be made into the bond redemption
funds for the outstanding "Special Fund Water -Sewage Revenue
Bonds, 1944-1946, Series B," dated January 1, 1946,.and the
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"Water Revenue -Bonds, 1948," dated March 1, 1948, have been
made, all of the "Special Fund Water -Sewage Revenue Bonds,
Series A," dated March 1, 1944, having been retired, and that
all payments required,.by.Ordinance No. 768, 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 Fund, 1954," and that no parity certificate
is required since the average annual debt service requirements
of the refunding bonds proposed to be issued are not increased
over the requirement for the bonds, being refunded; and
WHEREAS, provision is hereinafter made for the crea-
tion of a reserve account for the refunding bonds proposed to
be issued, into which account shall be accumulated, no later than
five. years after the date of the issuance of such refunding
bonds, an.amount equal to the average annual debt service re-
quirement for the refunding -bonds hereinafter authorized to be
issued, NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON,
DO ORDAIN as follows:
Section 1. For the purpose of providing the funds
with which to refund, pay, retire and cancel on January 1,.1963,
$600,000.00 par value of outstanding "Water and Sewer Revenue
Bonds,. 19571"" dated December'•l, 1957, there shall be issued and
sold $600,000..00 par value of refunding water and sewer revenue
bonds of the City. The bonds shall be designated "Water and
Sewer Revenue Refunding Bonds, 1963," (hereinafter called the
"Bonds"),, shall be dated January 1,. 1963, shall be in denomina-
tions of $1,000.00 each, shall be numbered from 1 to 600, inclu-
sive, and shall bear interest at -the rates hereinafter set forth,
interest to be payable semiannually'on January 1 and July 1 of
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each year, 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 maturity dates until the Bonds with interest
are paid in full or moneys 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 principal and interest, shall be payable in lawful money
of the United States of America at the office of the City Treas-
urer of the City•of Pasco,*Washington The Bonds shall mature
serially, annually, and bear interest in accordance with the
following schedule, to -wit:
Bond
Numbers
Interest
(Inclusive)
Amounts
Rates
Maturities
.1
to
17
17,000' r
3
%
July
1,
1963
18
to
35
18,000'
3
o
July
1,
1964
36
to,
45
102000
3
%
July
1,
1965
46
to
56
S11,000
3
%
July
1,
1966
57
to
67.
11,000
3
%
July
1,
1967
68
to
79
12,000
.3
1/4%
July
1,
1968
80
to -91
s12,000
3
1/4%
July
1,
1969
92
to
164 "
13,0.00•
3
1/4%
July
1,
1970
105
to
118
14,000
3
1/4%
July
1,
1971
119
to
133
15,000
3
1/2%
July
1,
1972
1 4
to
148
15, 000.
.3
1/2 0
July
1,
1973
149
to
163
15,000
3
1/%
July
1,
1974
164
to
18o
17,000
3
1/2%
July
July
1,
1,
1975
1976
18i
to
197
17,000
3
1/2%
198
to
215
18,000
3
3/4%
July
1,
1,
1977
1978
216
to
233
18,000
3
3/4%
July
234
253
to
to
252
272
19,000
20,000
3
3
3/4%
3/4%
July
July
1,
1,
1979
1980
273
to
292
20,000
174,000
3
3/4%
July
July
1,
1,
1981
1982
293
315
to
to`337
314
22,000
23,000
4
4
%
%
July
1,
1983
338
362
to
to
361
441
24,000
8o,000
4
4
%
%1
July
July
1,
1,
1984
1985
442
to
526
6o0
85,.000
4
4
%July
July
1,
1,
1986
1987
527
to
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Section 2. The City of Pasco reserves the right to
redeem any or all of the outstanding Bonds in inverse numerical
order at par, plus accrued,interest, on January 1, 1973, or on.
any semiannual -interest payment date thereafter.
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 not less than thirty nor more
than forty=five days prior to the date of redemption. Notice
of such call for redemption shall also be mailed to Terry Thomp-
son &..Co., 1701.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, 1963," hereinafter created.
Section 3. 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; 1963," (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 date thereof, and so long thereafter
as.Bonds are outstanding against the Bond Fund, the City Treasur-
er of the City of Pasco shall set aside and.•pay into the Bond
Fund out ,of . the egross , revenue.s ,of the waterworks utility, in-
eluding the system of, sewerage as a part thereof, now.belonging
to or which; may hereafter:,b,elong. to the City, including alh
additions.,': -extensions and betterments thereof at any time made,
a fixed amount without regard toany 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
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thereof, are hereby pledged to such payment and the Bonds
shall constitute a charge,u'pon such revenues prior and superior
to any other charges whatsoever, excluding charges for main-
tenance and -.operation, except that`the lien and charge upon
said gross revenues shall be subordinate and inferior to the
prior Tien and charge against the same for the outstanding.
"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 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•
Section 4. The City'Council and corporate author-
ities 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 opera-
tion 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, 1944-1946,
Series B," dated January 1, 1946; "Water Revenue Bonds, 1.948,"
dated March 1, 1948; and "Water and Sewer Revenue Bonds, 1954,"
dated.January 1, 1954, and that no portion of the revenues of
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N
said utility has been previously pledged for any other indebt-
edness, except for said outstanding "Special Fund Water -Sewage
Revenue Bonds, 1944-1:946, Series B," dated January 1, 1946;
"Water Revenue Bonds, 1948," dated March 1, 1948; "Water and -
Sewer Revenue Bonds, 1954,".dated January 1, 1954, heretofore
referred to, and the outstanding "Water and Sewer Revenue Bonds,
1957," dated December 1, 1957, to be refunded as aforesaid.
Section 5. The entire gross revenues of the water-
works utility,of•the City, including the system of sewerage
as a part thereof, and including all additions, extensions and
betterments thereof at any time 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
maintenance and operation of the utility. Maintenance and
operation expenses shall include all expenses reasonably incur-
red in the normal operation of the utility as it exists on a.
day-to-day basis, including paying agents' fees, if any, but
shall not include the cost of additions to or extensions of the
utility or'bther capital improvements or depreciation.
The Bond Fund is hereby divided into two accounts,
namely, a"Principal and Interest Account" and a "Reserve
Account."'So Tong as Bonds are outstanding against the Bond
Fund, the City Treasurer of the City of Pasco 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," rponthly, beginning on February 1,
1963, and on or,before the first day of
each month thereafter, 16th of.the amount
of.principal and interest to become payable
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on the Bonds on July 1,.1963, and, on or
before the first day of each -month there-
after, 112th of the next ensuing twelve
months' requirement's of both principal of,
.and interest on the Bonds;- and
(b) Into the "Reserve Account," monthly,
beginning on February 1, 1963, and continu-
ing.on or before the first day of.each month
thereafter, not less than $550,00 until the
total sum of $33,000.00 shall have been accu-
mulated therein, which total sum shall be
accumulated by no later than .January 1, 1968.
The "Reserve Account" may be accumulated from any
other moneys 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 $33,000.00 has been paid into the
"Reserve Account," it will at all times, except for withdrawals
therefrom as authorized herein, maintain that amount therein
until there is a sufficient amount in the "Principal and Inter-
est 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 -Interest Account" 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 Account" 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
moneys 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." Moneys in the "Reserve,
Account" shall otherwise be held intact and, may be applied
against'the.last outstanding Bonds.
M
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, or shall be invested in
United States Government obligations, maturing not later than
one month -prior to'th6 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
Account" until there shall be the said -sum of $33,000.00 accu-
mulated therein, after which such interest shall be deposited
in the "Principal and Interest Account."
Surplus moneys in the "water and Sewer Revenue Fund.,"
after making necessary provisions for the payment of.the ex
penses of maintenance and operation of the utility and the
required deposits to the Bond Fund, may be.used to make emer-
gency 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 pur-
chase"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 so.
Section 6. 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, mort-
gage, or in any..manner encumber or dispose
of all the properties -of the said waterworks
utility, including the sewerage system as a
part there -of, now belonging to or which may
hereafter belong' to it, including all
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additions, betterments and extensions
thereof at any time made, unless provision
is made for payment into the Bond Fund of a
sum sufficient to pay the principal of and
interest on all the outstanding 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 operation 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 disposal from
the portion of the utility so leased, encum-
bered 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.
(b) That it will maintain.in good con-
dition 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 Ia part
thereof, sufficient to permit payment into
the Bond Fund of the amounts required for
the payment of the principal 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 addi-
tion thereto, that it will pay all costs
of maintenance and operation, and taxes,
and meet the debt service requirements of
the outstanding "S ecial.Fund Water -Sewage
Revenue Bonds 194-.1946, Series'B," dated
January 1, 19+6; "Water Revenue Bonds,
1948," dated March 1, 1948; and "Water and
Sewer Revenue Bonds,. 1954," 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 remains outstanding, keep proper
.books of accounts and records separate.and
apart from other accounts and records, in
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'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.itwill 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 outstanding Bonds the right
at all reasonable times to inspect said
utility and all of the records, accounts
..and data of the City relating thereto.
Such operating and income statements
shall include the following items:
(1) Balance sheet, including balances
ri 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 connected 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; esti-
mate of gallons of water used for flush-
ing of mains and fires and galions.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 author-
ized., such analysis or recapitulation to
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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;
(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 holder
a copy of the most recently completed audit
of the City! -s accounts by the State Auditor
of Washington.
(d) That it will establish, maintain and
collect such rates -and charges for water
and for sanitary sewage service as long as
any of the.Bonds is outstanding as will
make available for the payment of the prin-
cipal of and. interest on all such Bonds, as
the same shall become due,ank'amount equiva-
lent to -at least 1.4 times the average
annual debt service requirement, both prin-
cipal and interest, for the then outstanding
Bonds and of the outstanding "Sppecial Fund
Water -Sewage Revenue Bonds, 194+-1946,
Series B," dated January 1, 1946; "Water.
Revenue Bonds, 1948; " dated March 1, 19+8;
and. "Water and Sewer Revenue Bonds, 1954,"
dated January 1, 1954, and of any bonds
hereafter issued on a parity with the out-
standing "Water and Sewer Revenue Bonds,
1954," and the Bonds in accordance with the
provisions of Section 13 of Ordinance No.
768, as amended by Ordinance No. 774, after
deducting the necessary costs of maintenance
and operation and taxes from the gross
revenues of its waterworks utility, including
the system of sewerage as a part thereof.
(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 it-
self of its utility lien rights, as set
forth in RCW 31.21.290 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
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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 maintain-
ing said utility. If, as; and when, the
United'States of America, or some agency
thereof, shall provide for war risk insur-
ance ,.the City further agrees to take out
.and 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 ..
That so long as any Bonds are
outst.andin t will not impose any t
excise on the_ chasers of wat r any
excise'or tax meas d by amount of
water so used, or sservices fur-
nished or the unts of -t ills payable
for wat o used.or sewerage s ices
fur shed.
(h).. That it will maintain its cor-
porate identity .and. existence .so long as
any Bonds remain outstanding.
at it wil•1 not grant any com-
peting utility se nchis
use all legal 11g, even ion
w! aid utility.
Section 7: The Bonds .'shall.,be in• substantially the
following form:
No. $1,000..00
UNITED STATES OF AMERICA
CITY OF PASCO, WASHINGTON .
WATER•AND SEWER REVENUE REFUNDING BOND, 1963
—51
KNOW ALL MEN BY THESE PRESENTS: That
the •City.of Pasco, Franklin County, Wash-
ington, for value received, hereby promises
to pay to the bearer on the FIRST DAY OF
JANUARY; 19 the principal sum of
ONE THOUSAND DOLLARS
together with interest thereon at the rate
-14-
of PER CENT ( %)
per annum, payable semiannually on January .l
and July 1 of each year upon the presentation
and surrender of the attached interest cou-
pons 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 inter-
est• is '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 '-'Wates and Sewer Revenue
Bond Fund, 1957," of the City. Both prin.-
cipal 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-,
solely out of the special fund created by
Ordinance No. 914 and known as the "'Water
and Sewer Revenue Bond Fund, 1957," (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 constructed, without regard to any
fixed proportion, namely, an amount suffi-
cient 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 $33,000..00, all at the times
and in the manner set forth in Ordinance
No. The bonds of this issue are.not a
general obligation of ,the City.
This bond is one of a total issue of
$600,000.00 par value of bonds, all of like
date, tenor and effect, except as to matur-
ities and interest rates, 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. -
of the City for the purpose of providing
the funds to refund, pay, retire and cancel
all outstanding "Water and Sewer Revenue
Bonds, •1957, " of the City. 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 in inverse numerical
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order at par, plus accrued interest, on
January 1, 1973, or on any semiannual
interest payment date thereafter.
Notice of any call for redemption
of the bonds of this issue prior to their
stated maturity datesshall be published
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
also be mailed to Terry Thompson & Co.'
1701 Northern Life Tower, Seattle, Washington,
or its successors, within the same period.
Interest on any bonds so called for re-
demption shall cease on the date fixed for
such redemption upon payment of the redemp-
tion price into the Bond Fund.
The bonds of this issue 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 mainten-
ance 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,
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.
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. 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
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as will produce the gross revenues necessary
to meet the'obligations of the said City as
herein set forth and as set forth in Ordi-
nance No.
It is hereby certified and declared
that the bonds -of -this issue are issued
pursuant to and in strictcompliance 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 re-
quired 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 facsimile signatures of
said officials this first day of January,.
1963.
CITY OF PASCO, WASHINGTON
By
Mayor
ATTEST:
Clerk
The interest coupons attached to the Bonds shall be
in'substantially the following form:
Coupon No.
On the FIRST DAY OF (JANUARY)(JULY).$
19 , the CITY OF PASCO, WASHINGTON,
upon presentation 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 of
America from the special fund of the City
known as "Water and Sewer Revenue Bond
Fund, 1957," said sum being the semiannual
-17-
r
interest then due on its "Water and Sewer
Revenue Refunding Bond, 1963," dated January
1, 1963, 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 interest coupons shall bear the facsimile signatures
of the Mayor and the Clerk.
.Section 8. The proceeds from the sale of the
Bonds shall be used for the sole purpose of paying, retiring
and canceling, on January 1•, 1963, $600,000.00 par value' of
outstanding "water and Sewer.,Revenue Bonds, 1957," dated
December 1, 1957, and the City Treasurer, by Council action
on November 20, 1962,.was heretofore authorized and directed
to call.for payment, on January•1, 1963, in the manner provided
in Ordinance No. 914 and in the Bonds, all outstanding "Water
and Sewer Revenue Bonds, 1957," and the City Treasurer is
hereby authorized and directed,to deposit from the proceeds.
received from the sale of the. Bonds in the "Principal and
Interest Account" in the "Water and Sewer Revenue Bond -Fund,
1957," the sum of $600,000.00 which,, together with the money
then on deposit in the "Principal,and Interest Account" and,in
the'"Reserve Account" in said "Water and Sewer Revenue Bond
Fund, 1957,"4ill be sufficient,to pay the principal, interest
and call premium on' •all., $6,15, 000 .,00 par value of said outstanding
" =18-
"Water and Sewer Revenue Bonds, 1957,if on January 1, 1963,
and topa.y all costs of the refunding operation. The accrued
interest received, if any, shall be deposited in the Bond Fund.
Section 9. The provisions of this ordinance shall
constitute a contract between 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 unless the written.consent of the holders of not less
than seventy-five per cent (75%) in aggregate principal amount
of the outstanding Bonds shall have first been obtained.
Section 10. Terry'Thompson & Co., of Seattle, Wash-
ington, heretofore offered to purchase the Bonds at a price
of par plus accrued interest from the date of issuance to the
date df'delivery of the Bonds, the City to furnish the printed.
Bonds and the unqualified approving legal opinion of Messrs.
Roberts, Shefelman, Lawrence, Gay & Moch, municipal bond counsel
of Seattle, Washington, at the City's expense.'.The City
Council, being,of the opinion' 'that no better price could be
obtained••for the'Bonds and that it was in the best interests
of the City to•accept said offer, duly accepted the same on
September 18,.1962, 'as confirmed by a fetter from.Terry Thompson
& Co. dated October 20, 1962, which acceptance is hereby duly
ratified. The Bonds shall,.theref.ore, immediately upon their
execution, be delivered to Terry Thompson & Co., in Seattle
Washington, upon said purchaser's paying for the same in
accordance with its offer..
PASSED by the City Council at a regular meeting '
-19-
1
thereof and APPROVED by the Mayor of the City of Pasco,
Washington, this 4th day of December, 1962.
MAYOR
ATTEST:
CLERK
APPROVED AS TO FORM:
CITY ATTORNh�Y
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