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HomeMy WebLinkAbout1466 Ordinance• { l CITY OF PASCO, WASHINGTON 1+66 ORDINANCE NO. AN ORDINANCE providing for the issuance of $900,000.00 par value of "Water and Sewer Revenue Bonds, 1971," to obtain a part of the funds with which to pay the cost of carrying out the system or plan for making additions to and betterments and extensions of the waterworks utility of the City of Pasco, including the sanitary sewerage system and the system of storm or surface water sewers as a part thereof, as specified and adopted in Ordinance No. 1342; fixing the date, form, maturities, interest rate, terms and covenants of such bonds; and confirming the sale of such bonds to Foster & Marshall Inc., of 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 (R.C.W. 35.67.320 et seq.) and the words "waterworks utility of the City" shall hereinafter mean the combined sanitary sewerage system and water system of the City, together with the storm or surface water sewers heretofore authorized to be.constructed and installed as a part of such combined systems, and together with all additions thereto and betterments and extensions thereof hereafter made; 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 shall constitute a charge or lien upon the revenues of the waterworks utility of the City on a parity with said "Water and Sewer Revenue Bonds, 1954," providing 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 'Water and Sewer Revenue Bond Fund, 1954'; 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 a part thereof, including the additional revenues reasonably anticipated 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, 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 bonds of this issue and of the additional revenue bonds proposed to be issued. Such determination of the sufficiency of the revenues shall be made and certified to by either a certified public accountant or profes- sional 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 purpose of refunding outstanding Water'Revenue Bonds or Water and Sewer Revenue Bonds and the average annual debt service re- quirements of such proposed additional revenue bonds are not increased over the requirement for the bonds being so refunded;" and WHEREAS, the City of Pasco, pursuant to Ordinance No. 1070, passed December 4, 1962, heretofore issued, under date of January 1, 1963, $600,000.00 par value of "Water and Sewer Revenue Refunding Bonds, 1963," 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 the then outstanding "Water and Sewer Revenue Bonds, 1957," dated -2- December 1, 1957, which "Water and Sewer Revenue Refunding Bonds, 1963," were issued on a parity of lien with the outstanding "Water and Sewer Revenue Bonds, 1954," pursuant to the provisions of Section 13 of Ordinance No. 768, as amended by Ordinance No. 774; and WHEREAS, the City of Pasco, pursuant to Ordinance No. 1165, passed November 3,-1964, heretofore issued $1,100,000.00 par value of "Water and Sewer Revenue Bonds, 1964," to obtain the funds with whi.ch to pay the cost of carrying out the system or plan for making additions to and betterments and extensions of the waterworks utility of the City, as specified and adopted in Ordinance No. 1145, which "Water and Sewer Revenue Bonds, 1964," were issued on a parity of lien with the outstanding "Water and Sewer Revenue Bonds, 1954," and "Water and Sewer Revenue Refunding Bonds, 1963," pursuant to the provisions of Section 13 of Ordinance No. 768, as amended by Ordinance No. 774; and WHEREAS, the City of Pasco, by Ordinance No. 13421 passed February 19, 1969, specified and adopted a system or plan for making additions to and betterments and extensions of the waterworks utility of the City, and provided for the issuance and sale of not to exceed . 1 $1,000,000.00 par value of water and sewer revenue bonds in one or more series to obtain a part of the funds with which to pay the cost of such system or plan, and authorized and directed the City officials to proceed with the improvement; and WHEREAS, the City Council deems that the proceeds from the sale of $900,000.00 par value of said authorized not to exceed $1,000,000.00 par value of water and sewer revenue bonds are necessary to pay the balance of the cost of carrying out said system or plan, and that it is in the best interests of the City that bonds in such amount should be issued and sold on a parity of lien with the outstanding "Water and Sewer Revenue Bonds, 1954," "Water and Sewer Revenue Refunding Bonds, 1963," and "Water and Sewer Revenue Bonds, 1964," in accordance with the provisions of Section 13 of Ordinance No. 768, as amended by Ordinance No. 774; and IsM 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 ".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; that all payments required by Ordinance No. 768, as amended by Ordinance No. 774, pertaining to the outstanding "Water.and Sewer Revenue Refunding Bonds, 1963," have been.made into the "Water and Sewer Revenue Bond Fund, 1963"; that all payments required by Ordinance No. 1165 pertaining to the outstanding "Water and Sewer Revenue Bonds, 1964," have been made into the "Water and Sewer Revenue Bond Fund, 1964"; that provision is hereafter made for the creation of a reserve account for the proposed additional bonds into which the required reserve amount shall be accumulated; and that NORMAN WARD of Cornell, Howland, Hayes & Merrifield/Hill, a professional engineer experienced in municipal utilities and licensed to practice in the State of Washington, will issue his certificate to the effect that the revenues of the waterworks utility of the City are sufficient to meet said 1.4 coverage requirement, which certificate to such effect shall be on file with the City Clerk prior to the delivery of the proposed additional bonds; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN as follows: Section 1. For the purpose of providing a part of the funds necessary to carry out the system or plan for making additions to and betterments and extensions of the waterworks utility of the City as specified and adopted by Ordinance No. 1342 and hereby ordered to be carried out, there shall be issued and sold $900,000.00 par value of water and,sewer revenue bonds to be known and designated as "Water and Sewer Revenue Bonds, 1971" (hereinafter called the "Bonds"), in lieu of the designation "Water and Sewer Revenue Bonds, 1969," as set forth 9 -4- in Ordinance No. 1342. The Bonds shall be dated March 1, 1971, shall be in denominations of $5,000.00 each, shall be numbered from 1 to 180, inclusive, and shall bear interest at the rate of 6.40% per annum, payable on September 1, 1971, and semiannually thereafter on the 1st days of March and September 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 City to pay interest at the bond rate 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 lawful money of the United States of America at the office of the Treasurer of Pasco, Washington, solely out of the special bond redemption fund created and established by Ordinance No. 1342 and therein designated as the "Water and Sewer Revenue Bond Fund, 1969," which designation is hereby changed to "Water and Sewer Revenue Bond Fund, 1971" (hereinafter called the "Bond Fund"), and the Bonds shall be a valid claim of the holder thereof only as against the Bond Fund, and the fixed amount of the revenues of the waterworks utility pledged to such fund and shall not be a general.obligation of the City of Pasco.. The Bonds shall mature in accordance with the following schedule, to -wit: Bond Numbers (Inclusive) Amounts Maturities 1 to 29 $145,000 March 1, 1991 30 to 60 155,000 March 1, 1992 61 to '93 165,000 March 1, 1993 94 to 128 175,000 March 1, 1994 129 to 165 185,000 March 1, 1995 166 to 180 75,000 March 1, 1996 Section 2. The City of Pasco reserves the right to redeem the Bonds as a whole, or in part in inverse numerical order,'on March 1, 1983, or on any subsequent semiannual interest payment date, at 103% of the par value thereof, reducing 1/2 of 1% per annum for each full year that the redemption is subsequent to March 1, 1983, to par on or after March 1, 1989, plus accrued interest to date of redemption in each case. -5- 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 thirty nor more than forty-five days prior to the.call date. Notice of said intended redemption shall also be mailed to Foster & Marshall Inc., or its successor, at its principal place of business in Seattle, Washington, not less than thirty nor more than forty-five days prior to the call date. In addition, such redemption notices shall also be sent to Moody's Investors Service, Inc., and Standard & Poor's Corporation, at their offices in New York, New York. 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 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 waterworks utility 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," commencing with the month of March, 1971, and continuing as long as any of the Bonds is outstanding and unpaid an amount which, together with the accrued interest received from the sale of the Bonds, if any, to be deposited therein, will equal 1/6th of the interest to become due and payable on the next interest payment date, and beginning with.the month of March, 1990, and continuing as long as any of the Bonds is outstanding and unpaid an amount which will equal 1/12th of the principal to. become due and payable on the next principal payment date on all of the Bonds then outstanding. (b) Into the "Reserve Account" an amount equal to the average annual debt service requirements of the Bonds, which amount shall be accumulated in substantially equal monthly payments and should be totally accumulated by no later than March 1, 1976. 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 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 principal of and interest on all outstanding 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 for the 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 of 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 City of Pasco, or may be invested in United States Government obligations redeemable at a fixed price and maturing not later than twelve years from date of purchase, and in no event later than February 1, 1996, and/or in shares of savings and loan institutions to the extent that such shares are guaranteed by the Federal Savings and Loan Insurance Corporation. Interest on any such investment or on such bank account 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." Surplus moneys in the "Water and Sewer Revenue Fund," after making necessary -provisions for the payment of the expenses of maintenance and operation of the utility and the required deposits to the Bond Fund, may be used to make emergency repairs and/or dC 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 and/or parity 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 4. The gross revenues of the waterworks utility of the City have been and are hereby pledged for the payment of the Bonds and for the outstanding "Water and Sewer Revenue Bonds, 1954," dated January 1, 1954, "Water and Sewer Revenue Refunding Bonds, 1963," dated January 1, 1963, "Water and Sewer Revenue Bonds, 1964," dated December 1, 1964, 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. This pledge shall constitute a lien and charge upon the gross revenues of the waterworks utility of the City prior and superior to any other charges whatsoever, excluding charges for maintenance and operation of said utility, except that the lien and charge upon said gross revenues for the Bonds shall be subordinate and inferior to the prior lien 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 i. be on a parity with the lien and charge.upon such gross revenues for the outstanding "Water and Sewer Revenue Bonds, 1954," dated January 1, 1954, "Water and Sewer Revenue Refunding Bonds, 1963," dated January 1, 1963, and "Water and Sewer Revenue Bonds, 1964," dated December 1, 1964, 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. Section 5. 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 waterworks utility 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 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 of the City that is used, useful and material to the operation of said water- works utility unless provision is made for replace- „ ment 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, 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. (b) That it will maintain in good condition and operate said waterworks utility and will establish, maintain and collect such rates as will produce gross revenues from the said waterworks utility, 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 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, 1944-1946, Series B," dated January 1, 1946, "Water Revenue Bonds, 1948," dated March 1, 1948, "Water and Sewer Revenue Bonds, 1954," dated January 1, 1954, "Water and Sewer Revenue Refunding Bonds, 1963," dated January 1, 1963, and "Water and Sewer Revenue Bonds, 1964," dated December 1, 1964, and otherwise meet the obligations of the City as herein set forth. (c) That it will, while any of the Bonds remain outstanding, 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 waterworks utility of the City, 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, 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 percent (25a) 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: ME (1) Balance sheet, including balances in 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; 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 recapitulation 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 year; (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 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 outstand- ing Bonds and of the outstanding "Special Fund Water - Sewage Revenue Bonds, 1944-46, Series B," dated January 1, 1946, "Water Revenue Bonds, 1948," dated March 1, 1948, "Water and Sewer Revenue Bonds, 1954," dated January 1, 1954, "Water and Sewer Revenue Refunding Bonds, 1963," dated January 1, 1963, "Water and Sewer Revenue Bonds, 1964," dated December 1, 1964, and of any bonds hereafter issued on a parity with the outstanding "Water and Sewer Revenue Bonds, 1954," "Water and Sewer Revenue Refunding Bonds, 1963," "Water and Sewer Revenue Bonds, 1964," 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 the waterworks utility of the City. -10- form: (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 utility lien rights, as set forth in R.C.W. 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 nor- mally carried by private water and 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 of America, or some agency thereof, shall provide for war risk insurance, 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. (g) That so long as any Bonds are outstanding it will not impose any tax or excise on the purchasers of water 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 soused 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 service franchise and will use all legal means to prevent competition with its said utility. Section 6. The Bonds shall be in substantially the following am UNITED STATES OF AMERICA STATE OF WASHINGTON CITY OF PASCO WATER AND SEWER REVENUE BOND, 1971 6.40% $5,000.00 KNOW ALL MEN BY THESE PRESENTS: That the City of Pasco, Franklin County, Washington, for value received, hereby promises to pay to the bearer on the FIRST DAY OF MARCH, 19—, the principal sum of FIVE THOUSAND DOLLARS together with interest thereon at the rate of SIX AND FORTY -HUNDREDTHS PERCENT (6.40%) per annum, payable on September 1, 1971, and semiannually 5190 thereafter on March 1 and September 1 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 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 "Water and Sewer Revenue Bond Fund, 1971," 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, solely out of the special fund created by Ordinance No. 1342 and known as the "Water and Sewer Revenue Bond Fund, 1971" (hereinafter 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, amounts sufficient to pay the principal of and interest on this issue of bonds as they respectively become due, and to create a reserve, all at the demes and in the manner set forth in Ordinance No. The bonds of this issue are not a general obligation of the City. y, This bond is one of a total issue of $900,000.00 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 Ordinances Nos. 1342 and 1466 of the City for the purpose of providing a part of the funds with which to pay the cost of carrying out the system or plan for making additions to and betterments and extensions of the waterworks utility of the City of Pasco, including the sanitary sewerage system and the system of storm or surface water sewers as a part thereof, as specified and adopted by Ordinance No. 1342. Reference is made to Ordinance No. 1466 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 as a whole, or in part in inverse numerical order, on March 1, 1983, or on any subsequent semiannual interest payment date, at 1030 of the par value thereof, reducing 1/2 of 1% per annum for each full year that the redemption is subsequent to Match 1, 1983, to par on or after March 1, 1989, plus accrued interest to date of redemption in each case. 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 thirty nor more than forty-five days prior to the call date. Notice of said intended redemption shall also be mailed to Foster & Marshall Inc., or its successor, at its principal place of business in Seattle, Washington, not less than thirty -12- nor more than forty-five days prior to the call date. In addition, such redemption notices shall also be sent to Moody's Investors Service, Inc., and Standard & Poor's Corporation, at their offices in New York, New York. 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. The bonds of this issue constitute a lien and charge 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 maintenance and operation of said utility, except that the lien and charge upon said gross revenues for the bonds of this issue are subordinate and inferior to the prior lien 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 of this issue are on a parity with the lien and charge upon such gross revenues for the outstanding "Water and Sewer Revenue Bonds, 1954," dated January 1, 1954, "Water and Sewer Revenue Refunding Bonds, 1963," dated January 1, 1963, and "Water and Sewer Revenue Bonds, 1964," dated December 1, 1964, 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. 1+66 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 City as herein set forth and as set forth in Ordinance No. 1+66 It is hereby certified and declared that the bonds of this issue are issued pursuant to and in strict compliance with the constitution and the 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 the facsimile signature of its Mayor and attested by the manual signature of its Director of Finance and ex officio City Clerk and its corporate seal to be affixed hereto, -13- and the interest coupons attached to be signed with the facsimile signatures of said officials this first day of March, 1971. CITY OF PASCO, WASHINGTON By (facsimile signature). Mayor ATTEST: Director of Finance and ex officio City Clerk The interest coupons attached to the Bonds shall be in substantially the following form: Coupon No. $160.00 On the FIRST DAY OF (MARCH)(SEPTEMBER), 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 shown hereon in lawful money of the United States of America from the special fund of the City known as the "Water and Sewer Revenue Bond Fund, 1971,".said sum being the semiannual interest then due on its "Water and Sewer Revenue Bond, 1971," dated March 1, 1971, and numbered CITY OF PASCO, WASHINGTON By (facsimile signature) Mayor ATTEST: (facsimile signature) Director of Finance and ex officio City Clerk The Bonds shall be printed on lithographed forms, shall be signed by the facsimile signature of the Mayor and attested by the manual signature of the Director of Finance and ex officio City 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 Director of Finance and ex officio City Clerk. Section 7. Foster & Marshall Inc. of Seattle, Washington, heretofore offered to purchase the Bonds at a price of $97.15 per each $100.00 par value of Bonds plus accrued interest from date of issue to date of delivery of such Bonds to the purchaser, the City to furnish -14- the Bonds and the approving legal opinion of Roberts, Shefelman, Lawrence, Gay & Moch. The City Council deeming that no better offer for the Bonds could be received and that it was in the best interests of the City to accept such offer duly accepted the same on February 16, 1971, and such acceptance is hereby ratified and confirmed. The Bonds shall, therefore, immediately upon their printing and execution be delivered to Foster & Marshall Inc. in accordance with such duly accepted offer. The accrued interest received shall be deposited in the Bond Fund, and the principal proceeds received from the sale of the Bonds shall be deposited in the "Water -Sewer Construction Fund" of the City. PASSED by the City Council of the City of Pasco, Washington, and approved by its Mayor at a regular meeting thereof held on the 2nd day of March, 1971. ATTEST: Directa ex -of fi City Clerk APPROVED AS TOFORM: Cilty ` • - -15- t - Mayor Foster & Marshall, Inc. 205 Columbia Street Seattle, Washington Attn: Robert 0. Yeasting Dear Mr. Yeasting: Attached is a certified. copy of Ordinance No. 1465, passed. by the Pasco City Council on March 2, 1971. If you have any further.q,uestions, please do not hesitate to call on me. Sincerely yours, CITY OF PASCO Harry D. Kinzer Director of Finance HDK:ew.. Enc: March 11, 1971 Roberts, Shefelman, Lawrence, Gay & Pooch 1818 I.G.M. Building Seattle, Washington Attn: James Gay Dear Jim: Attached is'a certified copy of Ordinance No. 1466 (Sale of $900,000 dater/Sewe.r`Bonds), minutes of regular Council Mes;ti ng shoving passage of Ordinance No. 1466, and an' Affidavit of Publication. If we have overlooked any pertinent item, please do not he-s-itate to call on us. _ . 'Sinc6.rely yours, CITY OF PASCO ;tarry D. Kinzer Director of Finance NDK:.ew Eric: (3) .