HomeMy WebLinkAbout1636 OrdinanceCITY OF PASCO, WASHINGTON
ORDINANCE NO. :�p
AN ORDINANCE providing for the issuance and
sale of $900,000.00 par value of "Water and
Sewer Revenue Refunding Bonds, 1974," for the
purpose of obtaining a part of the funds with
which to refund, pay and retire on September 1,
1983, the outstanding "Water and Sewer Revenue
Bonds, 1971," of the City; fixing the date, form,
denomination, maturities, interest rates, terms
and covenants of such refunding bonds; creating
a special account in the bond redemption fund of
the bonds being refunded to provide for the
refunding operation; creating a special bond
redemption fund to provide for the payment of
the refunding bonds; providing for and authorizing
the purchase of certain obligations out of the
proceeds of the sale of such refunding bonds and
other moneys of the City and for the use and
application of the moneys to be derived from such
investment; providing for the payment and
redemption of the outstanding bonds to be refunded;
and confirming the sale and providing for the
delivery of the refunding bonds to Foster &
Marshall Inc. of Seattle, Washington.
WHEREAS, the City of Pasco, Washington (hereinafter called
the "City"), 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 (RCW 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 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. '168, as amended
by Ordinance No. 774, the City reserved the right to issue additional
water and sewer revenue bonds which shall constitute a charge or lien
upon the revenue 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:
and
"(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; and
"(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 professional 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
averaae annual debt service requirements of such proposed
additional revenue bonds are not increased over the
requirement for the bonds beina so refunded;"
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WHEREAS, the City 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
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 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 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
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 1.3 of Ordinance No. 768, as amended by Ordinance No. 774; and
WHEREAS, the City pursuant to Ordinance No. 1466 passed
March 2, 1971, heretofore issued $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
as specified and adopted by Ordinance No. 1342, which "[Mater and Sewer
Revenue Bonds, 1971," were issued 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," pursuant to the provisions of Section 13 of Ordinance No. 768,
as amended by Ordinance No. 774; and
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WHEREAS, as provided in Ordinance No. 1466 and in the
outstanding "Water and Sewer Revenue Bonds, 1971" (hereinafter called
the "1971 Bonds"), the City reserved the right to redeem such 1971
Bonds as a whole, or in part in inverse numerical order, on or after
March 11 1983, at par plus accrued interest to date of redemption,
which 1971 Bonds mature in various amounts on March 1 of each of the
years 1991 through 1996 and all bear interest at the rate of 6.40%
per annum; and
WHEREAS, after due consideration it appears to the City
Council that all of the outstanding 1971 Bonds may be refunded by
providing funds for the payment of the principal of and interest on
such outstanding bonds until September 1, 1983, being six months after
the first call date for such bonds, at which time the remaining bonds
then outstanding will be paid and retired by the issuance and sale of
refunding bonds so that a substantial saving will be effected by the
difference between the principal and interest cost over the life of
the refunding bonds and the principal and interest cost over the life
of such outstanding 1971 Bonds; and
WHEREAS, in order to effect such refunding in the manner
that will be most advantageous to the City and its taxpayers, it is
hereby found necessary and advisable that certain "Acquired Obligations"
(hereinafter identified) bearing interest and maturing at such time
or times as necessary to pay the principal of and interest on the
1971 Bonds as the same shall become due and to redeem the 1971 Bonds
on September 1, 1983, be purchased out of the proceeds of the sale of
the refunding bonds herein authorized and other moneys of the City
legally available therefor (hereinafter called the "Refunding Bonds");
and
WHEREAS, the City Council hereby finds that all payments
required by the respective bond ordinances for each issue of
outstanding water and sewer revenue bonds of the City referred to
above have been made into the respective bond redemption funds for
MIC
each issue of such outstanding bonds; that provision is hereinafter
made for -the transfer from the "Reserve Account" in the bond redemption
fund for the outstanding 1971 Bonds to the "Reserve Account" in the
bond redemption fund hereinafter created for the payment of the
refunding bonds proposed to be issued the amounts presently on hand
in such 1971 "Reserve Account" and for the accumulation of the
additional amounts required in the "Reserve Account" in the bond fund
for the Refunding Bonds; and that no certificate of coverage is required
since the average annual debt service requirements of the refunding
bonds proposed to be issued are not increased over the requirements
for the 1971 Bonds to be refunded; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN,
as follows:
Section 1. As used in this ordinance the following words
shall have the following meanings:
a. "City" shall mean the City of Pasco, Washington, a duly
organized city of the third class.
b. "Refunding Bonds" shall mean the "Water and Sewer Revenue
Refunding Bonds, 1974," authorized to be issued by this ordinance.
C. "Bond Fund" shall mean the "Water and Sewer Revenue
Refunding Bond Redemption Fund, 1974," created by this ordinance for
the payment of the Refunding Bonds.
d. "1971 Bond Fund" shall mean the "Water and Sewer Revenue
Bond Fund, 1971," of the City created and established in the office
of the Treasurer of the City by Ordinance No. 1342, the designation
of which fund was changed by Ordinance No. 1466, out of which fund
the 1971 Bonds are payable.
e. "1954 Bonds" shall mean the outstanding "Water and Sewer
Revenue Bonds, 1954," dated January 1, 1954.
f. "1963 Bonds" shall mean the outstanding "Water and Sewer
Revenue Refunding Bonds, 1963," dated January 1, 1963.
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g. "1964 Bonds" shall mean the outstanding "Water and Sewer
Revenue Bonds, 1964," dated December 1, 1964.
h. "1971 Bonds" shall mean the outstanding "Water and Sewer
Revenue Bonds, 1971," dated March 1, 1971.
i. "Revenue of the waterworks utility of the City" shall
mean all the earnings and revenue received by the waterworks utility
of the City from any source whatsoever except general ad valorem taxes,
proceeds from the sale of City property and bond proceeds.
j. "Operating and Maintenance Expense" shall mean all
reasonable expenses incurred by the City in causing the waterworks
utility of the City to be operated and maintained in good repair,
working order and condition.
k. "Parity Bonds" shall mean any and all water and sewer
revenue bonds of the City issued after the date of the issuance of
the Refunding Bonds pursuant to the provisions of Section 13 of
Ordinance No. 768, as amended by Ordinance No. 774, the payment of
the principal of and interest on which constitutes a lien and charge
upon the revenue of the waterworks utility of the City on a parity
with the lien and charge upon such revenue for the outstanding 1954
Bonds, 1963 Bonds, 1964 Bonds and 1971 Bonds prior to their retirement
on September 1, 1983, and the Refunding Bonds.
Section 2. For the purpose of providing a part of the
moneys required to pay the principal of and interest on the 1971 Bonds
coming due to and including September 1, 1983, and to redeem and retire
on September 1, 1983, the outstanding 1971 Bonds maturing after
September_ 1, 1983, the City shall issue the Refunding Bonds in the
aggregate principal amount of $900,000.00.
The Refunding Bonds shall be dated April 1, 1974; shall
be in denominations of $5,000.00 each; shall bear interest at the
rates hereinafter set forth, payable on September 1, 1974, and
semiannually thereafter on the first days of March and September of
each year, interest to maturity being evidenced by coupons to be
attached to the Refunding 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 Refunding Bonds with interest are paid in
full or funds sufficient to pay such Refunding Bonds with interest in
full are on deposit in the Bond Fund hereinafter referred to and the
Refunding Bonds have been duly called for redemption. The Refunding
Bonds shall be numbered, shall bear interest and shall mature on March
1 of each year as follows:
Bond
Numbers
Interest
(Inclusive)
Amounts
Rates
Years
1
to
3
$ 15,000
6.00%
1975
4
to
6
15,000
6.00%
1976
7
to
9
15,000
6.00%
1977
10
to
12
15,000
6.00%
1978
13
to
15
15,000
6.00%
1979
16
to
18
15,000
6.00%
1980
19
to
22
20,000
5.50%
1981
23
to
26
20,000
5.00%
1982
27
to
30
20,000
5.10%
1983
31
to
34
20,000
5.20%
1984
35
to
38
20,000
5.25%
1985
39
to
43
25,000
5.30%
1986
44
to
48
25,000
5.35%
1987
49
to
53
25,000
5.40%
1988
54
to
59
30,000
5.45%
1989
60
to
65
30,000
5.50%
1990
66
to
101
180,000
5.55%
1991.
102
to
139
190,000
5.60%
1992
140
to
180
205,000
5.60%
1993
Both principal of and interest on the Refunding Bonds shall
be payable in lawful money of the United States of America at the
office of the Treasurer of the City, or, at the option of the holder,
at either fiscal agency of the State of Washington in the Cities of
Seattle, Washington, or New York, New York, solely out of the Bond
Fund, and shall be a valid claim of the holder thereof_ only as against
such Bond Fund and the amount of the revenue of the waterworks utility
of the City pledged to such fund, and shall not be a general obligation
of the City.
Section 3. The City reserves the right to redeem prior to
their stated maturity dates the Refunding Bonds as a whole, or in
part in inverse numerical order, on March 1, 1983, or on any semiannual
interest coupon due date thereafter, at the following percentages of
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par if called on the following dates, plus accrued interest to date
of redemption in each case:
Call Dates Call Prices
On
March
1,
1983,
or September 1,
1983, at 103%
On
March
1,
1984,
or September 1,
1984, at 102%
On
March
1,
1985,
or September 1,
1985, at 101%
On
March
1,
1986,
and thereafter,
at 100% (Par)
Notice of any call for redemption of the Refunding Bonds
prior to their stated maturity dates 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
intended redemption shall also be mailed to Foster & Marshall Inc.
at its main office in Seattle, Washington, or to the successor in
business of said corporation, if any, at its main office. In addition,
such redemption notice shall be sent to Moody's Investors Service, Inc.,
and Standard & Poor's Corporation at their offices in New York, New
York, or to their successors, if any. The mailing of such notice to
such corporations shall not be a condition precedent to the redemption
of such Refunding Bonds. Interest on any Refunding 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 City reserves the right to purchase any or all of the
Refunding Bonds in the open market at any time at a price not in
excess of 103% of the par value if purchased prior to September 1,
1983, and thereafter not in excess of the call price applicable at
the time of such purchase.
Section 4. There is hereby created and established in the
office of the Treasurer of the City a special fund to be known and
designated as the "Water and Sewer Revenue Refunding Bond Redemption
Fund, 1974" (herein defined as the "Bond Fund"). Such :fund is hereby
divided into two accounts, namely, a "Principal and Interest Account"
and a "Reserve Account." There is hereby also created and established
in the 1971 Bond Fund an additional account to be known and designated
as the "1974 Refunding Account." Immediately upon receipt of payment
aM.
in full for the Refunding Bonds, the accrued interest received, if
any, shall be deposited in the "Principal and Interest Account" in
the Bond Fund. The principal proceeds received shall be deposited
in the "1974 Refunding Account" in the 1971 Bond Fund and an amount
equal to the accrued interest on the 1971 Bonds from the last interest
payment date of such 1971 Bonds to the date of delivery of the Refunding
Bonds to the purchaser thereof, together with the sum of $52,000.00,
shall be transferred from the "Principal and Interest Account" in the
1971 Bond Fund to the "1974 Refunding Account" in the 1971 Bond Fund.
The moneys in the "1974 Refunding Account" shall be used immediately
upon the receipt thereof to discharge the obligations of the City
under Ordinance No. 1466 passed and approved October 15,. 1973,
authorizing the issuance of the 1971 Bonds by providing for the payment
as hereafter set forth in this section of the principal of and interest
on the 1971 Bonds. To the extent practicable the City shall discharge
such obligations by the purchase of Federal National Mortgage
Association Debentures and United States Treasury Bonds ("Acquired
Obligations") bearing such interest and maturing as to principal and
interest in such amounts and at such times so as to provide for the
payment of the principal of and interest on the 1971 Bonds which will
become due and payable on or before September 1, 1983, and the redemption
price payable on September 1, 1983, for the principal of the 1971 Bonds
maturing after September 1, 1983. Such "Acquired Obligations" and the
prices to be paid for the same are more particularly described in the
proposal of Foster & Marshall Inc. hereinafter referred to.
Such "Acquired Obligations" shall be irrevocably deposited
with Seattle -First National Bank, Seattle, Washington (hereinafter
called the "Refunding Trustee"). Any amounts described in this section
which are not provided for in full by the purchase and deposit of the
"Acquired Obligations" described in this section shall :be provided
for by the irrevocable deposit of a portion of the proceeds of sale
of the Refunding Bonds or other moneys of the City with the aforesaid
Refunding Trustee.
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All the moneys received as principal of or interest on
such "Acquired Obligations" shall be held by the Refunding Trustee
for the credit of the City for the "1974 Refunding Account" in the
1971 Bond Fund, and shall be held in trust and shall be used for the
sole purpose of paying the principal of and interest becoming due on
the 1971 Bonds up to and including September 1, 1983, and to pay and
retire on September 1, 1983, all 1971 Bonds maturing after September
1, 1983.
Any moneys remaining in the "1974 Refunding Account" in
the 1971 Bond Fund after the payment and retirement in full of the
outstanding 1971 Bonds on September 1, 1983, shall be transferred and
paid into the "Principal and Interest Account" in the Bond Fund. All
of such "Acquired Obligations" purchased as a part of the refunding
plan are irrevocably dedicated to the purpose set forth in this
ordinance, and such investments or the earnings or the proceeds
therefrom may be used for no other purpose, nor may any of such
investments be liquidated prior to maturity.
Section 5. The City hereby irrevocably calls for redemption
on September 1, 1983, all of the outstanding 1971 Bonds maturing after
September 1, 1983, at 103% of the par value thereof plus accrued
interest to such date of redemption. Such call for rede=mption shall
be irrevocable after the delivery of the Refunding Bonds to the initial
purchaser thereof.
The Director of Finance and ex officio City Clerk is hereby
authorized and directed to give notice of the redemption of the 1971
Bonds in accordance with the provisions of Ordinance No. 1466 pertaining
to the 1971 Bonds.
Section 6. The Refunding Trustee is hereby authorized and
directed to pay the principal of and interest on the 1971 Bonds when
due from the "Acquired Obligations" and moneys deposited with the
Refunding Trustee pursuant to Section 4 of this ordinance. All
"Acquired Obligations" and the moneys deposited with the Refunding
Trustee and any income therefrom shall be held and applied in accordance
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with the provisions of Ordinance No. 1466 pertaining to the 1971
Bonds and this ordinance and with the statutes of the State of
Washington.
All necessary and proper fees, compensation and expenses
of the Refunding Trustee for the Refunding Bonds and all. other costs
incidental to the refunding of the 1971 Bonds, including but not limited
to reasonable charges of bond counsel, rating services and bond printing,
shall be paid when due by the initial purchaser of the Refunding Bonds.
The proper officers and agents of the City are directed to obtain from
the Refunding Trustee an agreement setting forth the duties, obligations
and responsibilities of the Refunding Trustee in connection with the
redemption and retirement of the 1971 Bonds as provided herein and
stating that such provisions and the payment of the fee:, compensation
and expenses of such Refunding Trustee are satisfactory to it.
In order to carry out the purposes of this ordinance, the
Mayor and Director of Finance and ex officio City Clerk of the City
are authorized and directed to execute and deliver to Seattle -First
National Bank, Seattle, Washington, a copy of such agreement when the
provisions thereof have been fixed and determined. Such agreement
when finally executed shall be marked "Exhibit A"; shall be attached
to this ordinance and by this reference thereto is hereby made a part
of this ordinance.
Section 7. So long as Refunding Bonds are outstanding
against the Bond Fund, the Treasurer of the City shall set aside and
pay into the "Principal and Interest Account" in such fund out of the
Revenue of the waterworks utility of the City a fixed amount, without
regard to any fixed proportion, namely, monthly, on or before the 20th
day of each month beginning with the month of April, 1974, an amount,
together with the accrued interest received, equal to 1/5th of the
amount of interest payable on the Refunding Bonds on September 1, 1974,
and thereafter 1/6th of the next ensuing six months' requirements for
interest and beginning with the month of April, 1974, 1/12th of the
next ensuing twelve months' requirements for principal on the Refunding
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Bonds and continuing thereafter until the Refunding Bonds, both
principal and interest, are paid in full.
Section 8. The Treasurer of the City is hereby authorized
and directed to transfer from the "Reserve Account" in the 1971 Bond
Fund to the "Reserve Account" in the Bond Fund all moneys on deposit
in such "Reserve Account" in the 1971 Bond Fund, and the Citv shall
thereafter set aside and pay into the "Reserve Account" in the Bond
Fund out of the Revenue of the waterworks utility of the City in
substantially equal monthly payments the amounts required to have
been paid into the "Reserve Account" in the 1971 Bond Fund so that
by no later than March 1, 1976, there shall have been accumulated in
the "Reserve Account" in the Bond Fund for the Refunding Bonds an
amount not less than the average annual debt service requirements
for the Refunding Bonds.
The "Reserve Account" in the Bond Fund may be accumulated
from any other moneys which the City may have available for such
purpose in addition to using such Revenue therefor.
The City further agrees that when said required amounts
have been paid into the "Reserve Account" in the Bond Fund, 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 Refunding Bonds to the
final maturity thereof at which time the moneys in the Bond Fund,
including the "Reserve Account" therein, may be used to pay such
principal and interest.
In the event 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 Refunding Bonds, 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
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from the Revenue of the waterworks utility of the City first available
after making necessary provisions for the required payments into the
Bond Fund.
All moneys in the "Reserve Account," above provided for,
may be kept on deposit in the official bank depository of the City
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, 1993, 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" of
the City, after making necessary provisions for the payment of
Operating and Maintenance Expense of the waterworks utility of the
City and the required deposits to the Bond Fund, may be used to make
emergency repairs and/or extensions of and improvements to the
waterworks utility of the City 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 Refunding 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. anv Refunding Bond may bring
suit against the City to compel it to do so.
Section 9. The Revenue of the waterworks utility of the
City is hereby pledged to such payments, and the Refunding Bonds
shall constitute a lien and charge upon such Revenue prior and
superior to any other charges whatsoever, excluding Operating and
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Maintenance Expense, except that the lien and charge upon such
Revenue for the Refunding Bonds shall be on a parity with the lien
and charge thereon for the outstanding 1954 Bonds, 1963 Bonds, 1964
Bonds and the 1971 Bonds prior to their retirement on September 1,
1983, as herein provided and any additional Parity Bonds hereafter
issued.
Section 10. In the judgment of the City Council the Revenue
of the waterworks utility of the City at the rates to be charged for
water and sanitary sewage disposal service furnished on the entire
utility will be more than sufficient to meet all Operating and
Maintenance Expense thereof and the debt service on the outstanding
1954 Bonds, 1963 Bonds, 1964 Bonds and the 1971 Bonds (together with
the principal and interest received on the "Acquired Obligations" prior
to the retirement of the 1971 Bonds on their call date as herein
provided) and to permit the setting aside into the Bond Fund out of
the Revenue of the waterworks utility of the City of amounts sufficient
to pay the interest on the Refunding Bonds as such interest becomes
payable and to pay and redeem all of the Refunding Bonds at maturity.
The City Council and corporate authorities of the City further hereby
declare that in creating the Bond Fund and in fixing the amounts to be
paid into the same as aforesaid they have exercised due regard for the
Operating and Maintenance Expense of the waterworks utility of. the City
and the debt service requirements of the presently outstanding bonds
above referred to, and the City has not bound and obligated itself to
set aside and pay into the Bond Fund a greater amount or proportion of
the Revenue of the waterworks utility of the City than :in the judgment
of the City Council will be available over and above such Operating and
Maintenance Expense and debt service requirements of said outstanding
bonds and that no portion of the Revenue of the waterworks utility of
the City has been previously pledged for any indebtedness other than
the outstanding bond issues above referred to.
Section 11. The City further hereby covenants and agrees
with the owner and holder of each of the Refunding Bonds as follows:
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(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 Refunding 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 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 Refunding Bonds as the
Revenue available for debt service for said Refunding
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 Refunding Bonds from
the entire utility for the same period. Any such money
so paid into the Bond Fund shall be used to retire
outstanding Refunding Bonds at the earliest possible date.
(b) That it will maintain in good condition and
operate said waterworks utility of the City and will
establish, maintain and collect such rates as will
produce Revenue 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 Refunding 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 Operating and Maintenance Expense and meet the
debt service requirements of the outstanding 1954 Bonds,
1963 Bonds, 1964 Bonds, 1971 Bonds (prior to their
retirement on September 1, 1983) and the Refunding Bonds
and otherwise meet the obligations of the City as herein
set forth.
(c) That it will, while any of the Refunding 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 the Refunding Bonds, or any subsequent holder
or holders thereof, complete operating and income
statements of the waterworks utility of the City, 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 (25%) of the outstanding Refunding 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 in all funds
created by this ordinance;
(2) Statement of Cash Receipts and Disbursements;
(3) Income and Expenses;
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(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 authorised,
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 the Refunding 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 Refunding Bonds is
outstanding as will make available for the payment of the
principal of and interest on all such Refunding Bonds and
the outstanding 1954 Bonds, 1963 Bonds, 1964 Bonds, 1971
Bonds (prior to their retirement on September 1, 1983, as
herein provided) and any Parity Bonds hereafter issued,
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 such then outstandinq
56nds aafter_deductin_g Operating and Maintenance Expense
from the Revenue of the waterworks utility of the Citv,
but before depreciation and any City `imposed taxes upon
such utility.
(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 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 water and sewer companies engaged in
the operation of water and sewerage systems, -and the cost
of such insurance shall be considered a part of Operating
and Maintenance Expense. If, as, and when, the United
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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 Refunding Bonds are out-
standing 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
so used or sewerage services furnished.
(h) That it will maintain its corporate identity
and existence so long as any Refunding 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.
(j) That it will make no use of the proceeds of the
Refunding Bonds or other funds of the City at any time
during the term of the Refunding Bonds which, if such
use had been reasonably expected at the date that the
Refunding Bonds are issued, would have caused such
Refunding Bonds to be arbitrage bonds within the meaning
of Section 106(d) of the United States Internal Revenue
Code of 1954, and for this purpose it further covenants
that none of the proceeds of the Refunding Bonds or the
investment of such proceeds will be used to acquire
obligations the adjusted yield on which will exceed the
adjusted yield produced by the Refunding Bonds, both
such adjusted yields being computed pursuant and subject
to the requirements and exceptions of Sections 1.103-13
and 1.103-14 of the regulations proposed by the United
States Treasury Department published in the Federal
Register on May 3, 1973 (except for refunding bonds
portion which is still covered by June 1, 1972, proposed
regulations), as the same may be changed from time to
time, or any other applicable regulations hereafter
adopted.
The covenants of this section appertaining to the Refunding
Bonds shall be subject to all provisions concerning payment and to all
other contractual provisions in the proceedings authorizing the
issuance of the outstanding 1971 Bonds or otherwise appertaining
thereto.
Section 12. The Refunding Bonds shall be designated "Water
and Sewer Revenue Refunding Bonds, 1974," and shall be in substantially
the following form:
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i Me
$5,000.00
UNITED STATES OF AMERICA
STATE OF WASHINGTON
CITY OF PASCO
WATER AND SEWER REVENUE REFUNDING BOND, 1974
g
KNOW ALL MEN BY THESE PRESENTS: That the City of
Pasco, State of Washington, for value received hereby
promises to pay to bearer on the FIRST DAY OF MARCH,
19 , the principal sum of
FIVE THOUSAND DOLLARS
together with interest thereon at the rate of o
per annum from date hereof until the said principal
sum 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
Refunding Bond Redemption Fund, 1974," of the City
(hereinafter called the "Bond Fund"). Interest is
payable on September 1, 1974, and semiannually
thereafter on March 1 and September 1 of each year.
Interest falling due on and prior to maturity is
evidenced by and payable upon the surrender of the
attached interest coupons as they severally become due,
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 money is available in the Bond Fund for the
payment in full. 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, or, at the option of the holder,
at either fiscal agency of the State of Washington in
the Cities of Seattle, Washington, or New York, New
York, solely out of the Bond Fund created by Ordinance
No. , into which fund the City hereby binds itself
irrevocably to pay certain fixed amounts out of the
gross revenues of the waterworks utility of the City,
including the sewerage system as a part thereof, now
belonging or which hereafter may 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 the bonds of this issue as they
respectively become due and to create a reserve, 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 $900,000.00 par
value of bonds, all of like date, tenor and effect,
except as to maturities, interest rates and option of
redemption, all payable from the Bond Fund and all
issued by the City under and in pursuance of the laws
of the State of Washington, particularly Chapter 138,
-18-
Laws of 19651 lst Ex. Ses., as amended, known as the
"Refunding Bond Act" (RCW Chapter 39.53), for the
purpose of providing the funds to refund, pay and
retire all of its outstanding "Water and Sewer Revenue
Bonds, 1971," dated March 1, 1971, all as provided in
Ordinance No. , and is issued in full compliance
with the ordinances of the City and the Constitution
and laws of the State of Washington. Reference is made
to Ordinance No. as more fully describing the
covenants with and it ghts of holders of bonds of this
issue.
The City reserves the right to redeem prior to their
stated maturity dates the bonds of this issue as a whole,
or in part in inverse numerical order, on March 1, 1983,
or on any semiannual interest coupon due date thereafter,
at the following percentages of par if called on the
following dates, plus accrued interest to date of
redemption in each case:
Call Dates Call Prices
On March 1, 1983, or September 1, 1983, at 103%
On March 1, 1984, or September 1, 1984, at 102%
On March 1, 1985, or September 1, 1985, at 101%
On March 1, 1986, and thereafter, at 100% (Par)
Notice of any call for redemption of the bonds of this
issue prior to their stated maturity dates 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 intended
redemption shall also be mailed to Foster & Marshall
Inc. at its main office in Seattle, Washington, or to
the successor in business of said corporation, if any,
at its main office. In addition, such redemption notice
shall be sent to Moody's Investors Service, Inc., and
Standard & Poor's Corporation at their offices in New
York, New York, or to their successors, if any, but the
mailing of such notice to such corporations shall not be
a condition precedent to the call of any of the bonds of
this issue for redemption. 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 gross revenues from the waterworks utility of the
City, including the sewerage system as a part thereof,
have been pledged to such payments and the bonds of this
issue shall constitute a lien and charge upon such revenues
prior and superior to any other charges whatsoever,
excluding charges for maintenance and operation, except
that the lien and charge upon such gross revenues for the
bonds of this issue shall be on a parity with the lien
and charge thereon 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, "Water and Sewer Revenue Bonds, 1971," dated
March 1, 1971 (prior to their retirement on September 1,
1983), and any additional water and sewer revenue bonds
hereafter issued pursuant to the provisions of Section 13
of Ordinance No. 768, as amended by Ordinance No. 774.
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The City hereby covenants and agrees to and with
the holder of this bond that it will keep and perform
all the 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
sewerage system as a part thereof, and to establish,
maintain and collect rates and charges in connection
therewith as will produce the gross revenues necessary
to meet the obligations of said City as herein set forth
and as set forth in Ordinance No.
It is hereby certified and declared that the bonds of
this issue are issued pursuant to and in strict compliance
with the Constitution and laws of the State of Washington
and the ordinances of the City, 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 been 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 hereto affixed and the interest
coupons attached to be signed with the facsimile signatures
of said officials this first day of April, 1974.
CIT�k,��SCO, WA TO
By (facsimile signa ure
Mayor
ATTE
is
Difecto of Fiifalhce
ex off'c o City Cle
The intdYest coupons attached to said Refunding Bonds shall
be in substantially the following form:
No. Coupon No. _ ($
on Coupon
$ No. 1)
On the FIRST DAY OF (MARCH)(SEPTEMBER), 19 , the
CITY OF PASCO, WASHINGTON, upon the presentation and
surrender of this coupon, will pay to bearer at the
office of the City Treasurer of Pasco, Washington, or,
at the option of the holder, at either fiscal agency
of the State of Washington in the Cities of Seattle,
Washinaton, or New York, New York, 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 Refunding Bond Redemption Fund, 1974,"
said sum being the interest then due on its "Water and
Sewer Revenue Refunding Bond, 1974," dated April 1,
1974, and numbered
CITY PASCO, INGT
By (facsimile signature)
Mayor
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ATTEST:
(facsimile signature)
Director of Finance and
ex officio City Clerk
Section 13.
The Refunding 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, shall have the seal of the City
affixed thereto, and the coupons shall bear the facsimile signatures
of the Mayor and the Director of Finance and ex officio City Clerk.
Section 14. The City hereby further covenants with the
owner and holder of each of the Refunding Bonds for as long as any
of the same is outstanding that it will not create any special fund
or funds for the payment of the principal of and interest on any
other revenue bonds which will have any priority over or which will
rank on a parity with the payments required by this ordinance to be
made out of the Revenue of the waterworks utility of the City into
the Bond Fund, except that it reserves the right to issue Parity Bonds
for the purposes and subject to the conditions set forth in Section 13
of Ordinance No. 768, as amended by Ordinance No. 774, which section
is incorporated in this ordinance and by this reference made a part
hereof.
Nothing contained in this section shall prevent the City
from issuing revenue bonds or warrants, the payment of the principal
of and interest on which is a charge upon the Revenue of the waterworks
utility of the City junior and inferior to the payments required to
be made out of such Revenue into the Bond Fund.
Section 15. In the event the City shall issue advance
refunding bonds pursuant to the laws of. the State of Washington to
pay the principal of and interest on the Refunding Bonds or such
portion thereof included in the refunding plan as the same become
due and payable and to refund all such then outstanding Refunding
Bonds and to pay the costs of refunding, and shall have irrevocably
set aside for and pledged to such payment and refunding, moneys and/or
-21-
direct obligations of the United States of America or other legal
investments sufficient in amount, together with known earned income
from the investment thereof, to make such payments and to accomplish
the refunding as scheduled, and shall irrevocably make provisions for
redemption of such Refunding Bonds, then in that case all right and
interest of the owners or holders of the Refunding Bonds to be so
retired or refunded and the appurtenant coupons in the covenants of
this ordinance and in the Revenue of the waterworks utility of the
City, funds and accounts obligated to the payment of such Refunding
Bonds, except the right to receive the funds so set aside and pledged,
shall thereupon cease and become void and the City may then apply any
moneys in any fund or account established for the payment or redemption
of such Refunding Bonds or coupons to any lawful purposes as it shall
determine.
In the event that the refunding plan provides that the
refunding bonds be secured by cash and/or direct obligations of the
United States of America or other legal investments pending the prior
redemption of those Refunding Bonds being refunded and if such
refunding plan also provides that certain cash and/or direct obligations
of the United States of America or other legal investments are
irrevocably pledged for the prior redemption of those Refunding Bonds
included in the refunding plan, then only the debt service on the
Refunding Bonds and the refunding bonds payable from the Revenue of
the waterworks utility of the City shall be included in the computation
of coverage for issuance of Parity Bonds and the annual computation of
coverage for determining compliance with the rate covenants.
Section 16. Foster & Marshall Inc. of Seattle, Washington,
heretofore offered to purchase the Refunding Bonds at a price of $99.00
per each $100.00 par value thereof plus accrued interest to the date of
delivery of the Refunding Bonds, the City to furnish the printed
Refunding Bonds and the unqualified approving legal opinion of Messrs.
Roberts, Shefelman, Lawrence, Gay & Moch, municipal bond counsel of
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Seattle, Washington, and the purchaser to pay the cost of printing
such Refunding Bonds and the cost of such legal opinion and the
purchaser to provide the "Acquired Obligations" above referred to
as set forth in such offer. The City Council, being of the opinion
that it was in the best interests of the City to accept such offer,
duly accepted the same on March 5, 1974, and such acceptance is hereby
ratified and confirmed. The Refunding Bonds shall, therefore,
immediately upon their execution be delivered to the purchaser upon
payment for the Refunding Bonds in accordance with such offer.
Section 17. This ordinance shall become effective five days
after its passage, approval and publication as provided by law.
PASSED by the City Council of the City of Pasco, Washington,
and APPROVED by the Mayor at a regular open public meeting thereof
this 19th day of March, 1974.
ATTESV:
•
Director Finance a
ex offigii City Clerk
FORM APPROVED:
City Attorney
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EXHIBIT A
A G R E E M E N T
THIS AGREEMENT made and entered into as of the day
of March, 1974, by and between the CITY OF PASCO, WASHINGTON, a
municipal corporation of the State of Washington (the "City"), and
SEATTLE -FIRST NATIONAL BANK (:G-er-4o--e Trust Division) , Seattle,
-Washington (the "Refunding Trustee") ;
W I T N E S S E T H:
SECTION 1. Recitals. The City now has outstanding its
"Water and Sewer Revenue Bonds, 1971," issued under date of March 1,
1971, in the aggregate principal amount of $900,000.00 (hereinafter
called the "1971 Bonds"). Pursuant to Ordinance No. 1466 pertaining
to the 1971 Bonds, the City in the manner provided therein may provide
for the refunding prior to maturity of the 1971 Bonds 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. The City by Ordinance No. passed by the City
Council and approved by the Mayor on March 19, 1974, has determined
to refund the 1971 Bonds on September 1, 1983, in accordance with the
terms of said Ordinance No. 1466 out of the proceeds of sale of its
"Water and Sewer Revenue Refunding Bonds, 1974" (the "Refunding Bonds")
and other moneys of the City legally available therefor.
SECTION 2. Provisions for Refundina the 1971 Bonds. To
accomplish the refunding of the 1971 Bonds, including the payment of
principal of and interest on such bonds until September 1, 1983, the
call date of such 1971 Bonds, the City, simultaneously with the
delivery of the Refunding Bonds issued pursuant to said Ordinance
No. , does hereby agree to irrevocably deposit with the Refunding
Trustee in.'trust for the security and benefit of the holders and
owners of the 1971 Bonds and the Refunding Bonds, $121.87 in cash
and the.. following acquired obligations ("Obligations"):
Security
Interest
Amount Rate Maturity
Federal National Mortgage
Association Debentures $890,000 6.750% 6/10/83
United States Treasury Notes 13,000 5.625% 8/15/74
Any government obligation qualified under RCW 39.53.010, as amended,
may be substituted at time of closing for any of the above securities
not available at time of closing, provided such substituted obligation
shall provide the identical yield specified for the substituted
security. Such cash and Obligations, with the investment income
the -re -from„ will •be -sufficient ,to provide for the payment of the
principal of and interest on the 1971 Bonds coming due to and including
September 1, 1983, and to pay the redemption price payable on September
1, 1983, for the redemption of the 1971 Bonds maturing after September
1, 1983.
On or before the delivery of the Refunding Bonds the City
agrees that it will cause to be delivered to the Refunding Trustee a
statement setting forth the amount of interest and the amount of
principal to be paid on each semiannual interest payment date on the
1971 Bonds up through September 1, 1983, and the amount of the
principal and premium required on September 1, 1983, to pay and redeem
all then outstanding 1971 Bonds.
The City by said Ordinance No. has irrevocably called
for redemption or prepayment on September 1, 1983, the 1971 Bonds
maturing after September 1, 1983. Such call for redemption or
prepayment shall be irrevocable upon the delivery of the Refunding
Bonds. The Director of Finance and ex officio City Clerk of the City
shall provide for publication and mailing of the proper notices of
such redemption or prepayment in accordance with the applicable
provisions of Ordinance No. 1466 pertaining to the 1971 Bonds.
Provision for the giving of such notices of redemption or
prepayment has irrevocably been made by the City.
-2-
SECTION 3. Disbursements by the Refunding Trustee. The
Refunding Trustee shall present for payment on the due date thereof
the Obligations so deposited and shall apply the proceeds derived
therefrom in accordance with the provisions of this section.
Moneys shall be transferred by the Refunding Trustee to
the Treasurer of the City in amounts sufficient to pay the interest
on and principal of the 1971 Bonds becoming due and payable on or
before September 1, 1983, and in amounts sufficient to pay on September
1, 1983, the redemption price with respect to the 1971 Bonds maturing
after September 1, 1983.
SECTION 4. Nonreinvestment of Funds; Custody and
-Safekeepiirg of 'Obligati -ons. All 'moneys -deposited with the Refunding
Trustee or received by the Refunding Trustee as maturing principal
or interest on Obligations prior to the time required to make the
payments hereinbefore set forth shall be held by the Refunding
Trustee and shall not be reinvested.
All income derived from the Obligations and any moneys
deposited with the Refunding Trustee pursuant to Section 2 hereof
in the hands of the Refunding Trustee (which moneys are not required
to make the payments hereinbefore required to be made) shall be paid
to the Treasurer of the City for the credit of the "1974 Refunding
Account" in the "Water and Sewer Revenue Bond Fund, 1971," of the
City (hereinafter called the "Refunding Account") as and when realized
and collected for use and application as other moneys deposited in
said Refunding Account.
For as long as any of the 1971 Bonds are outstanding, on
or before the 10th day of each May and November, commencing with
the month of May, 1974, the Refunding Trustee shall render a statement
as of the last day of the preceding six month's period to the
Treasurer of the City, which statement shall set forth the Obligations
which have matured and the amounts received by the Refunding Trustee
-3-
by reason of such maturity, the amounts paid to such Treasurer for
credit to the Refunding Account and the dates of such delivery for
the'payment of the interest on and principal of the 1971 Bonds as
the same shall become due and/or payable, and the final payment of
the redemption price for the 1971 Bonds on September 1, 1983, the
call date for such 1971 Bonds, and any other transactions of the
Refunding Trustee pertaining to its duties and obligations as set
forth herein.
All Obligations, moneys and investment income deposited
with or received by the Refunding Trustee pursuant to this Agreement
shall be subject to the trust created by this Agreement and the
Refunding Trustee shall be liable for the preservation and safekeeping
thereof.
Reference herein to payments made to the Treasurer of the
City shall also be deemed to include payments made to the fiscal
agency of the State of Washington on behalf of such Treasurer.
SECTION 5. Duties and Obligations of Refunding Trustee.
The duties and obligations of the Refunding Trustee shall be as
prescribed by the provisions of this Agreement, and the Refunding
Trustee shall not be liable except for the performance of its duties
and obligations as specifically set forth herein and to act in good
faith in the performance thereof and no implied duties or obligations
shall be incurred by such Refunding Trustee other than those specified
herein.
The Refunding Trustee may consult with counsel of its
choice and the opinion of such counsel shall be full and complete
authorization and protection in respect of any action taken or not
taken or suffered by it hereunder in good faith and in accordance
with the opinion of such counsel.
-4-
Provisions for the fees, compensation and expenses of the
Refunding Trustee satisfactory to it have been made.
CITY OF PASCO, WASHING`T'ON
By 3_dvolo�
Mayor
ATTEST:
0
Di ector onance and Ll
ex offic' City Clerk
SEATTLE -FIRST NATIONAL BANK
S7?�(GarT�nra .e• Trust Division)
By
Trust Officer
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