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
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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
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$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
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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.
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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
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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.
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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
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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,
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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
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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 ` • -
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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) .