HomeMy WebLinkAbout4254 Ordinance CITY OF PASCO,WASHINGTON
ORDINANCE NO. 4254
AN ORDINANCE relating to the waterworks utility of the City, including
the sanitary sewerage system and the system of storm or surface water sewers as a
part thereof; specifying, adopting and ordering the carrying out of a system or
plan of additions to and betterments and extensions of the waterworks utility of
the City; providing for the issuance of one or more series of water and sewer
revenue bonds of the City in an aggregate principal amount of not to exceed
$15,000,000 for the purpose of providing the funds necessary (a) to pay all or a
portion of the costs of carrying out the plan of additions, (b) to make a deposit to
the debt service reserve account, (c) to refund and redeem outstanding water and
sewer revenue bonds of the City and (d) to pay the costs of issuance and sale of
the bonds and the administrative costs of the refunding; fixing or setting
parameters with respect to certain terms and covenants of the bonds; appointing
the City's designated representative to approve the final terms of the sale of the
bonds; and providing for other related matters.
Passed: November 30, 2015
This document was prepared by:
FOSTER PEPPER PLLC
1111 Third Avenue, Suite 3400
Seattle, Washington 98101
(206) 447-4400
51476003.3
TABLE OF CONTENTS
Page
Section 1. Definitions 1
Section 2. Findings and Determinations 8
Section 3. Plan of Additions 10
Section 4. Authorization of the Bonds 10
Section 5. Appointment of Designated Representative; Description of the Bonds 10
Section 6. Registration and Transfer of Bonds 11
Section 7. Form and Execution of Bonds. 12
Section 8. Payment of Bonds 12
Section 9. Redemption Provisions and Purchase of Bonds 12
Section 10. Failure to Pay Bonds 14
Section 11. Bond Fund; Payments into Bond Fund 14
Section 12. Pledge, Lien and Charge for Payment of the Bonds 15
Section 13. Flow of Funds 16
Section 14. Covenants 16
Section 15. Provisions for Future Parity Bonds 17
Section 16. Tax Covenants 18
Section 17. Refunding or Defeasance of Bonds 18
Section 18. Deposit of Bond Proceeds; Creation of Construction Accounts 19
Section 19. Use of Refunding Proceeds; the Refunding Plan 19
Section 20. Sale and Delivery of the Bonds 21
Section 21. Official Statement; Continuing Disclosure 21
Section 22. General Authorization and Ratification 22
Section 23. Severability 22
Section 24. Effective Date of Ordinance 23
Exhibit A Parameters for Final Terms
Exhibit B Parity Conditions
Exhibit C Form of Undertaking to Provide Continuing Disclosure
_ I
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51476003.3
CITY OF PASCO, WASHINGTON
ORDINANCE NO. 4254
AN ORDINANCE relating to the waterworks utility of the City, including
the sanitary sewerage system and the system of storm or surface water sewers as a
part thereof; specifying, adopting and ordering the carrying out of a system or
plan of additions to and betterments and extensions of the waterworks utility of
the City; providing for the issuance of one or more series of water and sewer
revenue bonds of the City in an aggregate principal amount of not to exceed
$15,000,000 for the purpose of providing the funds necessary (a) to pay all or a
portion of the costs of carrying out the plan of additions, (b) to make a deposit to
the debt service reserve account, (c) to refund and redeem outstanding water and
sewer revenue bonds of the City and (d) to pay the costs of issuance and sale of
the bonds and the administrative costs of the refunding; fixing or setting
parameters with respect to certain terms and covenants of the bonds; appointing
the City's designated representative to approve the final terms of the sale of the
bonds; and providing for other related matters.
THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN as
follows:
Section 1. Definitions. As used in this ordinance, the following words shall have the
following meanings:
(a) "2002 Bonds" means the outstanding Water and Sewer Revenue Bonds, 2002, of
the City issued pursuant to Ordinance No. 3567.
(b) "2005 Bonds" means the outstanding Water and Sewer Revenue Bonds, 2005, of
the City issued pursuant to Ordinance No. 3740.
(c) "2007 Bonds" means the outstanding Water and Sewer Revenue Bonds, 2007, of
the City issued pursuant to Ordinance No. 3835.
(d) "2009 Bonds" means the outstanding Water and Sewer Revenue Bonds, 2009, of
the City issued pursuant to Ordinance No. 3915.
(e) "2010A Bonds" means the outstanding Water and Sewer Improvement and
Refunding Revenue Bonds, 2010A, of the City issued pursuant to Ordinance No. 3962.
(f) "2010T Bonds" means the outstanding Water and Sewer Refunding Revenue
Bonds,2010T(Taxable), of the City issued pursuant to Ordinance No. 3962.
(g) "2013A Bonds" means the outstanding Water and Sewer Revenue Bonds, 2013A,
of the City issued pursuant to Ordinance No. 4126.
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(h) "2013T Bonds" means the outstanding Water and Sewer Revenue Bonds, 2013T
(Taxable), of the City issued pursuant to Ordinance No. 4126.
(i) "Acquired Obligations" means the United States Treasury Certificates of
Indebtedness, Notes, and Bonds-State and Local Government Series and/or other Government
Obligations, as identified in the Refunding Trust Agreement, purchased to carry out the
Refunding Plan.
(j) "Alternate Security" means any bond insurance, collateral, security, letter of
credit, guaranty, surety bond or similar credit enhancement device providing for or securing the
payment of all or part of the principal of and interest on any specified Parity Bonds, issued by an
institution which has been assigned a credit rating at the time of issuance of the applicable Parity
Bonds, respectively, secured by such Alternate Security in the highest rating categories by both
Moody's Investors Service, Inc., and Standard&Poor's Ratings Services.
(k) "Annual Debt Service" for any or all Parity Bonds for any year means all the
interest, plus all principal which will mature or come due in such year, less all bond interest
payable from the proceeds of any such bonds in that year.
(1) `Assessment Bonds" means, at the time of determination, Parity Bonds then
outstanding equal to the sum of the nondelinquent unpaid principal amount of ULID
Assessments then outstanding plus any ULID Assessment payments then on deposit in the
Principal and Interest Account of the Bond Fund. Assessment Bonds shall be allocated to each
remaining maturity of Parity Bonds in the same proportion as the total of the Assessment Bonds
relates to the total of the Parity Bonds then outstanding.
(m) `Authorized Denomination" means $5,000.00 or any integral multiple thereof
within a maturity.
(n) "Average Annual Debt Service" means, at the time of its calculation, the sum of
the Annual Debt Service for the remaining years to the last scheduled maturity of the applicable
Parity Bonds divided by the number of those years.
(o) "Beneficial Owner" means, with respect to a Bond, the owner of any beneficial
interest in that Bond.
(p) "Bond Counsel" means the firm of Foster Pepper PLLC, its successor, or any
other attorney or firm of attorneys selected by the City with a nationally recognized standing as
bond counsel in the field of municipal finance.
(q) "Bond Fund" means the Water and Sewer Revenue and Refunding Bond
Redemption Fund, 1991, of the City created and established by Ordinance No. 2846 for the
payment of the principal of and interest on the Parity Bonds.
(r) "Bond Purchase Agreement"means an offer to purchase the Bonds, or a Series of
Bonds, setting forth certain terms and conditions of the issuance, sale and delivery of that Series
of the Bonds, which offer is authorized to be accepted by the Designated Representative on
behalf of the City, if consistent with this ordinance.
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(s) "Bond Register" means the books or records maintained by the Bond Registrar
for the purpose of identifying ownership of the Bonds.
(t) "Bond Registrar" means the Fiscal Agent, or any successor bond registrar
selected by the City.
(u) "Bonds" means the bonds of the City issued pursuant to and for the purposes
provided in this ordinance in one or more series and with such additional series and other
designation as the Designated Representative may deem appropriate.
(v) "City" means the City of Pasco, Washington, a municipal corporation duly
organized and existing under the laws of the State.
(w) "City Contribution" means legally available money of the City, in addition to
proceeds of the Bonds, necessary or advisable to carry out the Refunding Plan, as determined by
the Designated Representative.
(x) "City Council" means the legislative authority of the City, as duly and regularly
constituted from time to time.
(y) "Code" means the United States Internal Revenue Code of 1986, as amended,
and applicable rules and regulations promulgated thereunder.
(z) "Construction Accounts" means such accounts created in the Water/Sewer Fund
as the Finance Manager shall designate for the purpose of paying the costs of the Plan of
Additions and the costs of issuance of the Bonds.
(aa) "Coverage Requirement" in any year means an amount of Net Revenue of the
Waterworks Utility, together with the ULID Assessments collected in that year, equal to at least
the Maximum Annual Debt Service on all Assessment Bonds plus an amount of the Net Revenue
of the Waterworks Utility not used to calculate the Coverage Requirement on Assessment Bonds
equal to at least 1.25 times Maximum Annual Debt Service on all bonds payable from the Bond
Fund that are not Assessment Bonds.
(bb) "DTC" means The Depository Trust Company, New York, New York., or its
nominee.
(cc) "Designated Representative" means an officer of the City appointed in Section 5
of this ordinance to serve as the City's designated representative in accordance with RCW
39.46.040(2).
(dd) "Final Terms" means the terms and conditions for the sale of a Series of Bonds
including, but not limited to the amount, date or dates, denominations, interest rate or rates (or
mechanism for determining interest rate or rates), payment dates, final maturity, redemption
rights,price, and other terms or covenants,including minimum savings for refunding bonds.
(ee) "Finance Manager" means the City's Finance Manager or such other officer of
the City who succeeds to substantially all of the responsibilities of that office.
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(f "Fiscal Agent"means the fiscal agent of the State, as the same may be designated
by the State from time to time.
(gg) "Future Parity Bonds"means any and all water and sewer revenue bonds or other
obligations of the City issued or incurred after the date of the issuance of the Bonds pursuant to
the provisions of the Parity Bond Ordinances, the payment of the principal of and interest on
which constitutes a lien and charge upon the Net Revenue of the Waterworks Utility and ULID
Assessments on a parity with the lien and charge upon such Net Revenue and ULID Assessments
for the Outstanding Parity Bonds and the Bonds,but shall not include variable rate obligations.
(hh) "Government Obligations" has the meaning given in RCW 39.53.010, as now in
effect or as may hereafter be amended.
(ii) "Gross Revenue of the Waterworks Utility" or "Gross Revenue" means all of the
earnings and revenues received by the City from the maintenance and operation of the
Waterworks Utility and all earnings from the investment of money on deposit in the Bond Fund,
except ULID Assessments, government grants, proceeds from the sale of Waterworks Utility
property, City taxes collected by or through the Waterworks Utility, principal proceeds of bonds
and earnings or proceeds from any investments in a trust, defeasance or escrow fund created to
defease or refund Waterworks Utility obligations (until commingled with other earnings and
revenues of the Waterworks Utility) or held in a special account for the purpose of paying a
rebate to the United States Government under the Code.
(jj) "Issue Date" means, with respect to a Bond, the date of initial issuance and
delivery of that Bond to the Purchaser in exchange for the purchase price of that Bond.
(kk) "Letter of Representations" means the Blanket Issuer Letter of Representations
between the City and DTC dated August 31, 1998.
(II) "Maximum Annual Debt Service"means, at the time of calculation, the maximum
amount of Annual Debt Service that will mature or come due in the current year or any future
year on the outstanding Parity Bonds.
(mm) "MSRB"means the Municipal Securities Rulemaking Board.
(nn) "Net Revenue of the Waterworks Utility" or "Net Revenue" means the Gross
Revenue less Operating and Maintenance Expenses.
(oo) "Official Statement" means an offering document, disclosure document, private
placement memorandum or substantially similar disclosure document provided to purchasers and
potential purchasers in connection with the initial offering of the Bonds in conformance with
Rule 15c2 12 or other applicable regulations of the SEC.
(pp) "Operating and Maintenance Expenses" means all reasonable expenses incurred
by the City in causing the Waterworks Utility to be operated and maintained in good repair,
working order and condition, including payments made to any other municipal corporation or
private entity for water service and for sewage treatment and disposal service or other utility
service in the event the City combines such service in the Waterworks Utility and enters into a
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contract for such service, but not including any depreciation or taxes levied or imposed by the
City or payments to the City in lieu of taxes, or capital additions or capital replacements to the
Waterworks Utility.
(qq) "Outstanding Parity Bonds" means the outstanding 2002 Bonds, 2005 Bonds,
2007 Bonds, 2009 Bonds, 2010A Bonds, 2010T Bonds, 2013A Bonds and 2013T Bonds.
Outstanding Parity Bonds shall not include any Refunded Bonds.
(rr) "Owner" means, without distinction, the Registered Owner and the Beneficial
Owner.
(ss) "Parity Bonds" means the Outstanding Parity Bonds, the Bonds and any Future
Parity Bonds.
(tt) "Parity Bond Ordinances" means Ordinance No. 3567, Ordinance No. 3740,
Ordinance No. 3835, Ordinance No. 3915, Ordinance No. 3962, Ordinance No. 4126 and this
ordinance.
(uu) "Parity Conditions" means the conditions for issuing Future Parity Bonds set
forth in Exhibit B to this ordinance,which is incorporated herein by this reference.
(vv) "Plan of Additions" means the system or plan of additions to and betterments and
extensions of the Waterworks Utility specified, adopted and ordered to be carried out by this
ordinance.
(ww) "Principal and Interest Account" means the account of that name created in the
Bond Fund for the payment of the principal of and interest on all Parity Bonds.
(xx) "Project Bonds" means those Bonds allocated to carrying out the Plan of
Additions, including providing for the Reserve Requirement with respect to the Project Bonds.
(yy) "Purchaser" means Piper Jaffray & Co. of Seattle, Washington, or such other
purchaser of the Bonds whose offer is accepted by the Designated Representative in accordance
with this ordinance.
(zz) "Rating Agency" means any nationally recognized rating agency then
maintaining a rating on the Bonds at the request of the City.
(aaa) "Record Date" means the Bond Registrar's close of business on the 15th day of
the month preceding an interest payment date. With respect to redemption of a Bond prior to its
maturity, the Record Date shall mean the Bond Registrar's close of business on the date on
which the Bond Registrar sends the notice of redemption in accordance with Section 9.
(bbb) "Redemption Date" means, with respect to each series of the Refunded Bonds, a
date or dates selected by the Designated Representative.
(ccc) "Refunded Bonds" means the Refunding Candidates selected by the Designated
Representative and identified in the Refunding Plan.
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(ddd) "Refunding Bonds" means those Bonds allocated to carrying out the Refunding
Plan, including providing for the Reserve Requirement with respect to the Refunding Bonds.
(eee) "Refunding Candidates" means (1) the currently outstanding $1,160,000
principal amount of the 2002 Bonds maturing on December 1 of each of the years 2019 through
2021, (2) the currently outstanding $2,605,000 principal amount of the 2005 Bonds maturing on
September 1 of each of the years 2016 through 2025, and (3) the currently outstanding $315,000
principal amount of the 2007 Bonds maturing on September 1, 2022.
(ice "Refunding Plan" means (as further described in the Refunding Trust
Agreement):
(1) the deposit with the Refunding Trustee of proceeds of the Bonds in
an amount, together with the City Contribution (if any), sufficient to acquire the
Acquired Obligations and establish a beginning cash balance;
(2) the receipt by the Refunding Trustee of the maturing principal of
and interest on the Acquired Obligations, and the application of such amounts
(together with any other cash held by it) to pay principal of and interest on the
Refunded Bonds when due up to and including the applicable Redemption Dates,
and the call, payment and redemption of the Refunded Bonds on the applicable
Redemption Dates at a price equal to the principal amount to be redeemed; and
(3) payment of the costs of issuing the Bonds and the costs of carrying
out the foregoing elements of the Refunding Plan, if payment of such costs is so
specified in the Refunding Trust Agreement.
(ggg) "Refunding Trust Agreement" means the refunding trust agreement between the
City and the Refunding Trustee,providing for the carrying out of the Refunding Plan.
(hhh) "Refunding Trustee" means the trustee, or any successor trustee, designated by
the Designated Representative to serve as refunding trustee to carry out the Refunding Plan.
(iii) "Registered Owner" means, with respect to a Bond, the person in whose name
that Bond is registered on the Bond Register. For so long as the City utilizes the book-entry only
system for the Bonds under the Letter of Representations, Registered Owner shall mean the
Securities Depository.
(jjj) "Reserve Account" means the account of that name created in the Bond Fund for
the purpose of securing the payment of the principal of and interest on the Parity Bonds.
(kkk) "Reserve Insurance" means, in lieu of cash and investments, insurance obtained
by the City to fund all or a portion of the Reserve Requirement for any Parity Bonds then
outstanding for which such insurance is obtained; and for the Outstanding Parity Bonds and the
Bonds means the Surety Bond provided by the Reserve Insurer.
(111) "Reserve Insurer" means Ambac Assurance Corporation for the Outstanding
Parity Bonds and the Bonds.
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(mmm)"Reserve Requirement"means:
(1) For the Outstanding Parity Bonds and the Bonds, an amount equal to the
least of(a) 10% of the issue price of the then-outstanding Parity Bonds, (b)Maximum
Annual Debt Service on the then-outstanding Parity Bonds and (c) 1.25 times Average
Annual Debt Service on the then-outstanding Parity Bonds. For the purposes of
determining Maximum Annual Debt Service and Average Annual Debt Service for
calculating the Reserve Requirement, all bonds payable or proposed to be paid from the
Bond Fund shall be treated as a single issue and the number of years to the last scheduled
maturity for any of those issues shall be used as the denominator.
(2) For any Future Parity Bonds secured by the Reserve Account, an amount
equal to the difference between the Reserve Requirement for the then-outstanding Parity
Bonds secured by the Reserve Account and the least of(a) 10% of the issue price of the
then-outstanding Parity Bonds secured by the Reserve Account and the Future Parity
Bonds proposed to be issued, (b)Maximum Annual Debt Service on the then-outstanding
Parity Bonds secured by the Reserve Account and the Future Parity Bonds proposed to be
issued and (c) 1.25 times Average Annual Debt Service on the then-outstanding Parity
Bonds secured by the Reserve Account and the Future Parity Bonds proposed to be
issued,but in no event to exceed an amount equal to the least of 10% of the issue price of
the proposed Future Parity Bonds, Maximum Annual Debt Service on those bonds and
1.25 times Average Annual Debt Service on the proposed bonds. For the purposes of
determining Maximum Annual Debt Service and Average Annual Debt Service for
calculating the Reserve Requirement, all bonds payable or proposed to be paid from the
Bond Fund secured by the Reserve Account shall be treated as a single issue and the
number of years to the last scheduled maturity for any of those issues shall be used as the
denominator.
(nnn) "Rule 15c2-12" means Rule 15c2-12 promulgated by the SEC under the
Securities Exchange Act of 1934, as amended.
(000) "SEC"means the United States Securities and Exchange Commission.
(ppp) "Series of the Bonds" or "Series"means a series of the Bonds issued pursuant to
this ordinance.
(qqq) "State"means the State of Washington.
(nr) "Surety Bond" means the surety bond issued by the Reserve Insurer guaranteeing
certain payments into the Reserve Account with respect to the Outstanding Parity Bonds and the
Bonds as provided in and subject to the limitations set forth in that surety bond.
(sss) "Term Bonds" means each Bond designated as a Term Bond and subject to
mandatory redemption in the years and amounts set forth in the Bond Purchase Agreement. For
any Outstanding Parity Bonds or Future Parity Bonds, "Term Bonds" means those bonds of any
single issue or series designated as Term Bonds pursuant to the ordinance authorizing their
issuance or sale and which are subject to mandatory prior redemption or for which mandatory
sinking fund installments are provided.
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(ttt) "ULID"means utility local improvement district.
(uuu) "ULID Assessments" means all ULID assessments and installments thereof, plus
interest and penalties thereon, in any ULID created to secure the payment of any Parity Bonds
and pledged to be paid into the Bond Fund.
(vvv) "Undertaking" means the undertaking to provide continuing disclosure entered
into pursuant to Section 21(c)of this ordinance.
(www) "Water and Sewer Revenue Fund"means that special fund of the City into which
all of the Gross Revenue of the Waterworks Utility of the City shall be deposited.
(xxx) "Waterworks Utility" means the combined sewerage system and water system of
the City, together with the storm or surface water sewers and agricultural/industrial wastewater
treatment facilities heretofore or hereafter authorized to be constructed and installed as a part of
such combined systems, and together with all additions thereto and betterments and extensions
thereof now or hereafter made.
Section 2. Findings and Determinations. The City takes note of the following facts
and makes the following findings and determinations:
(a) Background. 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 Laws of 1941 of the State of Washington(RCW
35.67.320 et seq.).
(b) Plan of Additions. The City has determined that it is necessary and in the best
interests of the City that certain improvements be made and there be adopted a system or plan of
additions to and betterments and extensions of the Waterworks Utility(the "Plan of Additions").
(c) Outstanding Parity Bonds. Pursuant to Ordinance No. 2846, the City heretofore
issued and sold its 1991 Bonds (all of which have been paid and retired), and reserved the right
to issue additional water and sewer revenue bonds of the City which would have a lien and
charge upon the Net Revenue of the Waterworks Utility and ULID Assessments on a parity with
those 1991 Bonds if the Parity Conditions are met. The City currently has outstanding the
following water and sewer revenue bonds issued on a parity of lien and charge on the Net
Revenue of the Waterworks Utility and ULID Assessments with the 1991 Bonds:
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Original Ordinance
Principal Dated Authorizing Passage
Name of Issue Amount Date Ordinance Date
2002 Bonds $ 5,945,000 10/01/2002 3567 10/07/2002
2005 Bonds 4,400,000 12/05/2005 3740 11/21/2005
2007 Bonds 845,000 7/02/2007 3835 6/18/2007
2009 Bonds 10,045,000 4/17/2009 3915 4/06/2009
2010A Bonds 9,070,000 6/03/2010 3962 5/17/2010
2010T Bonds 1,240,000 6/03/2010 3962 5/17/2010
2013A Bonds 2,520,000 12/05/2013 4126 11/18/2013
2013T Bonds 7,235,000 12/05/2013 4126 11/18/2013
(d) Parity Conditions Met. The City Council finds and declares that (1)all payments
required by the Outstanding Parity Bonds are provided for in this ordinance or have been
provided for or made into the Bond Fund for those outstanding bonds and that no deficiency
exists in such fund; (2)provision is hereinafter made for the deposit in the Reserve Account of
the Bond Fund of the Reserve Requirement for the Bonds; and (3)that all other conditions set
forth in the Parity Conditions will have been met and satisfied before the Bonds are delivered to
the initial purchaser.
(e) Refunding Candidates. In order to realize a debt service savings to the City and its
ratepayers, the City Council wishes to refund all or a portion of the Refunding Candidates.
Chapter 39.53 RCW and other laws of the State authorize the City to carry out the Refunding
Plan.
(f) Sufficiency of Gross Revenue; Due Regard. The City Council finds and
determines that the Gross Revenue of the Waterworks Utility will be more than sufficient to
(1)meet all Operating and Maintenance Expenses thereof (and the cost of maintenance and
operation as contemplated by RCW 35.92.100), and the debt service requirements of the
Outstanding Parity Bonds, and (2)permit the setting aside into the Bond Fund out of the Net
Revenue of the Waterworks Utility of the City of amounts sufficient to pay the principal of and
interest on the Bonds when due. The City Council declares that in creating the Bond Fund and in
fixing the amounts to be paid into that fund, it has exercised due regard for Operating and
Maintenance Expenses (and the cost of maintenance and operation contemplated by RCW
35.92.100) and the debt service requirements of the Outstanding Parity Bonds, 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 Gross 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 Expenses and
debt service requirements of the Outstanding Parity Bonds, and that no portion of the Gross
Revenue of the Waterworks Utility of the City has been previously pledged for any indebtedness
other than the Outstanding Parity Bonds.
(g) Issuance of Bonds. Based on the foregoing, the City Council finds that it is in the
best interest of the City to issue and sell the Bonds to the Purchaser, pursuant to the terms set
forth in the Bond Purchase Agreement as approved by the Designated Representative consistent
with this ordinance.
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Section 3. Plan of Additions. The City specifies, adopts and orders the carrying out
of a system or plan of additions to and betterments and extensions of the Waterworks Utility
consisting of the following improvements (the "Plan of Additions"), which are included and
more particularly described in the City's Capital Improvement Plan 2016-2021 approved
September 8, 2015:
(a) Water system improvements including construction of chlorine safety and sludge
drying beds at the Water Treatment Plant as well as a new waterline on Oregon Avenue (SR
397);
(b) Sewer system improvements including installation of two new primary clarifiers,
two new lift stations and a waste activated thickening(dissolved air flotation thickener)project.
There shall be included in the foregoing system or plan the acquisition and installation of
all necessary valves, pumps, fittings, couplings, connections, equipment and appurtenances, and
replacements and improvements necessary or desirable to maintain or increase the effectiveness
of the service provided by such facilities, other improvements to and extensions of the
Waterworks Utility, the acquisition of any easements, rights-of-way and land that may be
required and the performance of such work as may be incidental and necessary.
All of the foregoing shall be in accordance with the plans and specifications therefor
prepared by the staff and consulting engineers of the City.
The City Council may modify the details of the Plan of Additions where, in its judgment,
it appears advisable if such modifications do not substantially alter the purposes of the Plan of
Additions.
The estimated cost of the acquisition, construction, installation and financing of the
above-described improvements to be paid from the proceeds of the Bonds is declared to be
approximately $10,700,000. Any excess proceeds of the Project Bonds remaining following
payment of the costs of the Plan of Additions shall be applied to costs of other improvements to
the Waterworks Utility of the City heretofore or hereafter approved in the City's Capital Budget
Section 4. Authorization of the Bonds. For the purpose of providing the funds
necessary to (a)pay costs of carrying out the Plan of Additions, (b)carry out the Refunding Plan;
(c) make a deposit to the Reserve Account and (d) pay the costs of issuance and sale of the
Bonds, the City shall issue water and sewer revenue bonds in one or more Series in the aggregate
principal amount of not to exceed$15,000,000.
Section 5. Appointment of Designated Representative; Description of the Bonds. The
Finance Manager and the Deputy City Manager are each appointed as the Designated
Representative of the City, both with the individual authority to conduct the sale of the Bonds in
the manner and upon the terms deemed most advantageous to the City, and to approve the Final
Terms of the Bonds, with such additional terms and covenants as the Designated Representative
deems advisable, within the parameters set forth in Exhibit A,which is attached to this ordinance
and incorporated by this reference.
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Section 6. Registration and Transfer of Bonds.
(a) Registration of Bonds; Bond Register. Each Bond shall be issued only in
registered form as to both principal and interest and the ownership of each Bond shall be
recorded on the Bond Register. The Bond Register shall contain the name and mailing address of
each Registered Owner and the principal amount and number of each Bond held by each
Registered Owner.
(b) Bond Registrar; Duties. The Fiscal Agent is appointed as initial Bond Registrar.
The Bond Registrar shall keep, or cause to be kept, sufficient books for the registration and
transfer of the Bonds, which shall be open to inspection by the City at all times. The Bond
Registrar is authorized, on behalf of the City, to authenticate and deliver Bonds transferred or
exchanged in accordance with the provisions of the Bonds and this ordinance, to serve as the
City's paying agent for the Bonds and to carry out all of the Bond Registrar's powers and duties
under this ordinance and the System of Registration. The Bond Registrar shall be responsible for
its representations contained in the Bond Registrar's Certificate of Authentication on each Bond.
The Bond Registrar may become an Owner with the same rights it would have if it were not the
Bond Registrar and, to the extent permitted by law, may act as depository for and permit any of
its officers or directors to act as members of, or in any other capacity with respect to, any
committee formed to protect the rights of Owners.
(c) Transfer or Exchange. A Bond surrendered to the Bond Registrar may be
exchanged for a Bond or Bonds in any Authorized Denomination of an equal aggregate principal
amount and of the same Series, interest rate and maturity. A Bond may be transferred only if
endorsed in the manner provided thereon and surrendered to the Bond Registrar. Any exchange
or transfer shall be without cost to the Owner or transferee. The Bond Registrar shall not be
obligated to exchange any Bond or transfer registered ownership during the period between the
applicable Record Date and the next upcoming interest payment or redemption date.
(d) Securities Depository; Book-Entry Only Form. DTC is appointed as initial
Securities Depository. Each Bond initially shall be registered in the name of Cede & Co., as the
nominee of DTC. Each Bond registered in the name of the Securities Depository shall be held
fully immobilized in book-entry only form by the Securities Depository in accordance with the
provisions of the Letter of Representations. Registered ownership of any Bond registered in the
name of the Securities Depository may not be transferred except: (i) to any successor Securities
Depository; (ii) to any substitute Securities Depository appointed by the City; or (iii) to any
person if the Bond is no longer to be held in book-entry only form. Upon the resignation of the
Securities Depository, or upon a termination of the services of the Securities Depository by the
City, the City may appoint a substitute Securities Depository. If (i) the Securities Depository
resigns and the City does not appoint a substitute Securities Depository, or (ii) the City
terminates the services of the Securities Depository, the Bonds no longer shall be held in book-
entry only form and the registered ownership of each Bond may be transferred to any person as
provided in this ordinance.
Neither the City nor the Bond Registrar shall have any obligation to participants of any
Securities Depository or the persons for whom they act as nominees regarding accuracy of any
records maintained by the Securities Depository or its participants. Neither the City nor the Bond
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Registrar shall be responsible for any notice that is permitted or required to be given to a
Registered Owner except such notice as is required to be given by the Bond Registrar to the
Securities Depository.
Section 7. Form and Execution of Bonds.
(a) Form of Bonds; Signatures and Seal. Each Bond shall be prepared in a form
consistent with the provisions of this ordinance and State law. Each Bond shall be signed by the
Mayor and the City Clerk, either or both of whose signatures may be manual or in facsimile, and
the seal of the City or a facsimile reproduction thereof shall be impressed or printed thereon. If
any officer whose manual or facsimile signature appears on a Bond ceases to be an officer of the
City authorized to sign bonds before the Bond bearing his or her manual or facsimile signature is
authenticated by the Bond Registrar, or issued or delivered by the City, that Bond nevertheless
may be authenticated, issued and delivered and, when authenticated, issued and delivered, shall
be as binding on the City as though that person had continued to be an officer of the City
authorized to sign bonds. Any Bond also may be signed on behalf of the City by any person who,
on the actual date of signing of the Bond, is an officer of the City authorized to sign bonds,
although he or she did not hold the required office on its Issue Date.
(b) Authentication. Only a Bond bearing a Certificate of Authentication in
substantially the following form, manually signed by the Bond Registrar, shall be valid or
obligatory for any purpose or entitled to the benefits of this ordinance: "Certificate Of
Authentication. This Bond is one of the fully registered City of Pasco, Washington, [Name of
Series] described in the Bond Ordinance." The authorized signing of a Certificate of
Authentication shall be conclusive evidence that the Bond so authenticated has been duly
executed, authenticated and delivered and is entitled to the benefits of this ordinance.
Section 8. Payment of Bonds. Principal of and interest on each Bond shall be payable
in lawful money of the United States of America. Principal of and interest on each Bond
registered in the name of the Securities Depository is payable in the manner set forth in the
Letter of Representations. Interest on each Bond not registered in the name of the Securities
Depository is payable by electronic transfer on the interest payment date, or by check or draft of
the Bond Registrar mailed on the interest payment date to the Registered Owner at the address
appearing on the Bond Register on the Record Date. However, the City is not required to make
electronic transfers except pursuant to a request by a Registered Owner in writing received on or
prior to the Record Date and at the sole expense of the Registered Owner. Principal of each Bond
not registered in the name of the Securities Depository is payable upon presentation and
surrender of the Bond by the Registered Owner to the Bond Registrar. The Bonds are not subject
to acceleration under any circumstances.
Section 9. Redemption Provisions and Purchase of Bonds.
(a) Optional Redemption. The Bonds shall be subject to redemption at the option of
the City on terms acceptable to the Designated Representative, as set forth in the Bond Purchase
Agreement, consistent with the parameters set forth in Exhibit A.
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(b) Mandatory Redemption. Each Bond that is designated as a Term Bond in the
Bond Purchase Agreement, consistent with the parameters set forth in Exhibit A and except as
set forth below, shall be called for redemption at a price equal to the stated principal amount to
be redeemed, plus accrued interest, on the dates and in the amounts as set forth in the Bond
Purchase Agreement. If a Term Bond is redeemed under the optional redemption provisions,
defeased or purchased by the City and surrendered for cancellation, the principal amount of the
Term Bond so redeemed, defeased or purchased (irrespective of its actual redemption or
purchase prices) shall be credited against one or more scheduled mandatory redemption
installments for that Term Bond. The City shall determine the manner in which the credit is to be
allocated and shall notify the Bond Registrar in writing of its allocation prior to the earliest
mandatory redemption date for that Term Bond for which notice of redemption has not already
been given.
(c) Selection of Bonds for Redemption; Partial Redemption. If fewer than all of the
outstanding Bonds are to be redeemed at the option of the City, the City shall select the Series
and maturities to be redeemed. If fewer than all of the outstanding Bonds of a maturity of a
Series are to be redeemed, the Securities Depository shall select Bonds registered in the name of
the Securities Depository to be redeemed in accordance with the Letter of Representations, and
the Bond Registrar shall select all other Bonds to be redeemed randomly in such manner as the
Bond Registrar shall determine. All or a portion of the principal amount of any Bond that is to be
redeemed may be redeemed in any Authorized Denomination. If less than all of the outstanding
principal amount of any Bond is redeemed, upon surrender of that Bond to the Bond Registrar,
there shall be issued to the Registered Owner, without charge, a new Bond (or Bonds, at the
option of the Registered Owner) of the same Series, maturity and interest rate in any Authorized
Denomination in the aggregate principal amount to remain outstanding.
(d) Notice of Redemption. Notice of redemption of each Bond registered in the name
of the Securities Depository shall be given in accordance with the Letter of Representations.
Notice of redemption of each other Bond,unless waived by the Registered Owner, shall be given
by the Bond Registrar not less than 20 nor more than 60 days prior to the date fixed for
redemption by first-class mail,postage prepaid, to the Registered Owner at the address appearing
on the Bond Register on the Record Date. The requirements of the preceding sentence shall be
satisfied when notice has been mailed as so provided, whether or not it is actually received by an
Owner. In addition, the redemption notice shall be mailed or sent electronically within the same
period to the MSRB (if required under the Undertaking), to each Rating Agency, and to such
other persons and with such additional information as the Finance Manager shall determine, but
these additional mailings shall not be a condition precedent to the redemption of any Bond.
(e) Rescission of Optional Redemption Notice. In the case of an optional redemption,
the notice of redemption may state that the City retains the right to rescind the redemption notice
and the redemption by giving a notice of rescission to the affected Registered Owners at any time
on or prior to the date fixed for redemption. Any notice of optional redemption that is so
rescinded shall be of no effect, and each Bond for which a notice of redemption has been
rescinded shall remain outstanding.
(0 Effect of Redemption. Interest on each Bond called for redemption shall cease to
accrue on the date fixed for redemption, unless either the notice of optional redemption is
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rescinded as set forth above, or money sufficient to effect such redemption is not on deposit in
the Bond Fund or in a trust account established to refund or defease the Bond.
(g) Purchase of Bonds. The City reserves the right to purchase any or all of the Bonds
offered to the City at any time at any price acceptable to the City plus accrued interest to the date
of purchase.
Section 10. Failure to Pay Bonds. If the principal of any Bond is not paid when the
Bond is properly presented at its maturity date or date fixed for redemption, the City shall be
obligated to pay interest on that Bond at the same rate provided in the Bond from and after its
maturity or date fixed for redemption until that Bond, both principal and interest, is paid in full
or until sufficient money for its payment in full is on deposit in the Bond Fund, or in a trust
account established to refund or defease the Bond, and the Bond has been called for payment by
giving notice of that call to the Registered Owner.
Section 11. Bond Fund; Payments into Bond Fund. The Bond Fund has been
previously created and established as a special fund of the City known and designated as the
Water and Sewer Revenue and Refunding Bond Redemption Fund, 1991, which fund has been
divided into two accounts, namely, the Principal and Interest Account and the Reserve Account.
So long as any Parity Bonds are outstanding against the Bond Fund, the Finance Manager shall
set aside and pay into the Bond Fund all ULID Assessments upon their collection and, out of the
Net Revenue of the Waterworks Utility, certain fixed amounts without regard to any fixed
proportion, namely, amounts, together with any ULID Assessments collected by the City and
deposited into the applicable account in the Bond Fund and investment earnings in that account,
as follows:
(a) Into the Principal and Interest Account, on or before each interest or principal and
interest payment date, an amount equal to the interest or the principal and interest to become due
and payable on that interest or principal and interest payment date of all Parity Bonds; and
(b) Into the Reserve Account, on the Issue Date of the Bonds, an amount sufficient,
together with the Reserve Insurance, to fully fund the Reserve Requirement for all Parity Bonds.
Money deposited in the Reserve Account for the Reserve Requirement for all Parity
Bonds may be decreased for any issue of Parity Bonds when and to the extent the City has
provided for an Alternate Security or Reserve Insurance for those bonds.
When the Outstanding Parity Bonds are no longer outstanding, the following
paragraph shall become effective: The City may establish,for one or more series of Future
Parity Bonds, a separate reserve requirement (which may be zero), to be held in a separate
reserve account,for the purpose of securing those Future Parity Bonds, and those Future Parity
Bonds shall not be secured by amounts in the Reserve Account or by any Reserve Insurance
credited to the Reserve Account.
The City may establish additional accounts in the Bond Fund for the deposit of ULID
Assessments after the deposit of the required amount in the other funds.
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The Reserve Account for any Future Parity Bonds may be accumulated from any other
funds which the City legally may have available for such purpose in addition to using ULID
Assessments and Net Revenue of the Waterworks Utility.
The City further agrees that when the required amounts have been paid into the Reserve
Account in the Bond Fund, the City will maintain those amounts therein at all times, except for
withdrawals therefrom as authorized herein, until there is sufficient money in the Bond Fund,
including the Reserve Account therein, to pay the principal of and interest to maturity on all
outstanding bonds payable from the Bond Fund, at which time no further payments need be
made into the Bond Fund, and the money in the Bond Fund, including the Reserve Account, may
be used to pay that principal and interest.
If there shall be a deficiency in the Principal and Interest Account to meet maturing
installments of either principal or interest, as the case may be, on the Bonds, the deficiency shall
be made up from the Reserve Account by first the withdrawal of cash and investments therefrom
and after all cash and investments have been depleted, then by the draws on the Reserve
Insurance for that purpose on a pro rata basis. Any deficiency created in the Reserve Account by
reason of any withdrawal shall then be made up from the Net Revenue of the Waterworks Utility
first available after making necessary provisions for the required payments into the Principal and
Interest Account. The Reserve Insurer shall be reimbursed first, within one year, to reinstate the
Reserve Insurance,before the balance of the Reserve Requirement is restored.
All money in the Reserve Account not needed to meet the payments of principal and
interest when due may be kept on deposit in the official bank depository of the City or in any
national bank or may be invested in any legal investment for City funds maturing not later than
the interest or principal and interest payment date when the money will be needed. Interest on
any of those investments or on that bank account shall be deposited in and become a part of the
Reserve Account until the Reserve Requirement shall have been accumulated therein, after
which time the interest shall be deposited in the Principal and Interest Account.
Notwithstanding the provisions for the deposit or maintenance of earnings in accounts of
the Bond Fund, any earnings which are subject to a federal tax or rebate requirement may be
withdrawn from the Bond Fund for deposit into a separate fund or account for that purpose.
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 Owner of any Bond may bring
suit against the City to compel it to do so.
Section 12. Pledge, Lien and Charge for Payment of the Bonds. The Net Revenue of
the Waterworks Utility and ULID Assessments are pledged to the payment of the principal of
and interest on the Bonds when due and shall constitute a lien and charge upon that Net Revenue
of the Waterworks Utility and ULID Assessments prior and superior to any other charges
whatsoever, except that the lien and charge upon such Net Revenue and ULID Assessments for
the Bonds shall be on a parity with the lien and charge thereon for any outstanding Parity Bonds.
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Section 13. Flow of Funds. Funds in the Water and Sewer Revenue Fund shall be used
in the following order of priority:
(1) To pay Operating and Maintenance Expenses;
(2) To make all payments required to be made into the Bond Fund to pay and secure
the payment of the Annual Debt Service on all outstanding Parity Bonds;
(3) To make all payments required to be made into the Reserve Account and to make
all payments (principal and interest) required to be made in connection with
Reserve Insurance and any Alternate Security, except if there is not sufficient
money to make all payments for Reserve Insurance and any Alternate Security,
the payments shall be made on a pro rata basis with deposits in the Reserve
Account.
(4) To make all payments required to be made into the loan redemption funds or
accounts, and other revenue bond redemption funds created to pay the debt
service on any revenue obligation having a lien upon the Net Revenue of the
Waterworks Utility subordinate to the lien of the Bonds; and
(5) To make necessary additions, betterments, improvements or repairs to the
Waterworks Utility, and to retire by redemption or purchase any outstanding
Parity Bonds, or for any other lawful purpose.
Section 14. Covenants. The City covenants and agrees with the owner of each of the
Bonds as follows:
(a) It will not sell, lease, mortgage, or in any manner encumber or dispose of all the
properties of the Waterworks Utility unless provision is made for payment into the Bond Fund of
an amount sufficient either to defease all outstanding Parity Bonds or to pay the principal of and
interest on all the outstanding Parity Bonds in accordance with the terms thereof'; and further
binds itself irrevocably not to mortgage, sell, lease or in any manner dispose of any part of the
Waterworks Utility that is used, useful and material to the operation of such 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 Parity Bonds as the Net Revenue
available for debt service for such bonds for the twelve months preceding such sale, lease,
encumbrance or disposal from the portion of the Waterworks Utility so leased, encumbered or
disposed of bears to the Net Revenue available for debt service for such bonds from the entire
Waterworks Utility for the same period. Any such money so paid into the Bond Fund shall be
used to retire outstanding Parity Bonds at the earliest possible date.
(b) It will maintain and keep the Waterworks Utility in good repair, working order
and condition and to operate such utility and the business in connection therewith in an efficient
manner and at a reasonable cost.
(c) It will maintain and collect such rates as will produce sufficient Net Revenue of
the Waterworks Utility, together with ULID Assessment collections, as will make available for
the payment of the principal of and interest on the Parity Bonds as they come due and for
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payments as required to be made into the Reserve Account therein an amount at least equal to the
Coverage Requirement and, in addition thereto, that it will pay all Operating and Maintenance
Expenses and otherwise meet the obligations of the City as herein set forth.
(d) It will 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 make available to any Owner on written
request the annual operating and income statements of the Waterworks Utility.
(e) Except to aid the poor or infirm, to provide for resource conservation or to
provide for the proper handling of hazardous materials, it will not furnish water or sewerage
service to any customer whatsoever free of charge and it shall, not later than 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 applicable statutes.
(f) 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 Expenses, or it will implement and maintain a self-insurance
program or an insurance pool program with reserves adequate, in the judgment of the City
Council,to protect the owners of the Parity Bonds against loss.
(g) To the extent permitted by State law, it will maintain its corporate identity and
existence so long as any Bonds remain outstanding.
(h) It will not grant any competing utility service franchise and will use all legal
means to prevent competition with the Waterworks Utility.
(i) If on the first day of January in any year, two installments of any ULID
Assessment are delinquent, or the final installment of any ULID Assessment has been delinquent
for more than one year, the City shall proceed with the foreclosure of the delinquent assessment
or delinquent installments thereof in the manner provided by law.
Section 15. Provisions for Future Parity Bonds. The City reserves the right to issue
Future Parity Bonds if the Parity Conditions set forth in Exhibit B are met and complied with at
the time of the issuance of those Future Parity Bonds.
Nothing herein contained shall prevent the City from issuing Future Parity Bonds to
refund any maturing Parity Bonds then outstanding, money for the payment of which is not
otherwise available.
Nothing herein contained shall prevent the City from issuing revenue bonds or incurring
other obligations that are a charge upon the Net Revenue of the Waterworks Utility of the City
subordinate or inferior to the payments required to be made therefrom into the Bond Fund for the
payment of Parity Bonds or from pledging the payment of utility local improvement district
assessments into a redemption fund created for the payment of the principal of and interest on
those subordinate lien bonds or obligations as long as such utility local improvement district
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assessments are levied for improvements constructed from the proceeds of those subordinate lien
bonds or obligations.
Section 16. Tax Covenants.
(a) Preservation of Tax Exemption for Interest on Bonds. The City covenants that it
will take all actions necessary to prevent interest on the Bonds from being included in gross
income for federal income tax purposes, and it will neither take any action nor make or permit
any use of proceeds of the Bonds or other funds of the City treated as proceeds of the Bonds that
will cause interest on the Bonds to be included in gross income for federal income tax purposes.
The City also covenants that it will,to the extent the arbitrage rebate requirements of Section 148
of the Code are applicable to the Bonds, take all actions necessary to comply(or to be treated as
having complied)with those requirements in connection with the Bonds.
(b) Post-Issuance Compliance. The Finance Manager is authorized and directed to
review and update the City's written procedures to facilitate compliance by the City with the
covenants in this ordinance and the applicable requirements of the Code that must be satisfied
after the Issue Date to prevent interest on the Bonds from being included in gross income for
federal tax purposes.
Section 17. Refunding or Defeasance of Bonds. The City may issue refunding bonds
pursuant to State law or use money available from other lawful sources to carry out a refunding
or defeasance plan, which may include (a) paying when due the principal of and interest on any
or all of the Bonds (the "defeased Bonds"); (b) redeeming the defeased Bonds prior to their
maturity; and (c) paying the costs of the refunding or defeasance. If the City sets aside special
trust fund or escrow account irrevocably pledged to that redemption or defeasance (the "trust
account"), money and/or Government Obligations maturing at a time or times and bearing
interest in amounts sufficient to redeem, refund or defease the defeased Bonds in accordance
with their terms, then all right and interest of the Owners of the defeased Bonds in the covenants
of this ordinance and in the Gross Revenue of the Waterworks Utility, ULID Assessments, funds
and accounts obligated to the payment of the defeased Bonds, other than the right to receive the
funds so set aside and pledged, shall cease and become void. Thereafter, the Owners of defeased
Bonds shall have the right to receive payment of the principal of and interest on the defeased
Bonds solely from the trust account and the defeased Bonds shall be deemed no longer
outstanding. In that event, the City may apply money remaining in any fund or account (other
than the trust account) established for the payment or redemption of the defeased Bonds to any
lawful purpose, subject only to the rights of the Owners of any other Parity Bonds then
outstanding.
If the refunding plan provides that the defeased Bonds or the refunding bonds to be
issued be secured by money and/or Government Obligations pending the prior redemption of the
defeased Bonds and if such refunding plan also provides that certain money and/or Government
Obligations are pledged irrevocably for the prior redemption of the defeased Bonds included in
that refunding plan, then only the debt service on the Bonds which are not defeased Bonds and
the refunding bonds, the payment of which is not so secured by the refunding plan, shall be
included in the computation of the coverage requirement for the issuance of Future Parity Bonds
and the annual computation of coverage for determining compliance with the rate covenants.
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•
Section 18. Deposit of Bond Proceeds; Creation of Construction Accounts.
Immediately upon the issuance and delivery of the Bonds, the City shall cause the following to
occur:
(a) Reserve Account. Proceeds of the Bonds shall either be deposited in the Reserve
Account or used to acquire Reserve Insurance in an amount sufficient to satisfy the Reserve
Requirement with respect to the Bonds.
(b) Refunding Plan. The remaining proceeds of the Refunding Bonds shall be
deposited with the Refunding Trustee as set forth in Section 19.
(c) Construction Accounts. The Finance Manager is authorized to establish one or
more special accounts within the Water/Sewer Fund, designated as the Construction Accounts.
The remaining proceeds of the Project Bonds shall be paid into the Construction Accounts and
used to pay the costs of the Plan of Additions and the costs of issuing the Project Bonds (if not
included in the Refunding Plan). Until needed to pay those costs, the City may invest principal
proceeds deposited in the Construction Accounts temporarily in any legal investment, and the
investment earnings may be retained in such accounts and be spent for the purposes of those
accounts, except that earnings subject to a federal tax or rebate requirement may be withdrawn
therefrom and used for those tax or rebate purposes.
Section 19. Use of Refunding Proceeds; the Refunding Plan.
(a) Appointment of the Refunding Trustee. The Designated Representative is
authorized and directed to appoint a financial institution to serve as the Refunding Trustee and to
perform the duties of Refunding Trustee under this ordinance.
(b) Selection of Refunded Bonds. The Designated Representative is authorized and
directed to select the Refunding Candidates to be refunded by the Bonds. The Designated
Representative may choose to refund fewer than all of the Refunding Candidates. The Refunded
Bonds, as selected by the Designated Representative, shall be identified in the Bond Purchase
Contract and/or the Refunding Trust Agreement.
(c) Use of Refunding Proceeds; Purchase of Acquired Obligations. On the Issue
Date, sufficient proceeds of the sale of the Refunding Bonds, together with any City
Contribution, shall be deposited with the Refunding Trustee and used to discharge the
obligations of the City relating to the Refunded Bonds under the applicable Parity Bond
Ordinances by providing for the payment of the amounts required to be paid by the Refunding
Plan. To the extent practicable, such obligations shall be discharged fully by the Refunding
Trustee's simultaneous purchase of the Acquired Obligations, bearing such interest and maturing
as to principal and interest in such amounts and at such times so as to provide, together with a
beginning cash balance, if necessary, for the payment of the amount required to be paid by the
Refunding Plan. The Acquired Obligations shall be listed and more particularly described in a
schedule attached to the Refunding Trust Agreement, but are subject to substitution as set forth
below. The Designated Representative is authorized and directed to approve the Acquired
Obligations, if any, to be purchased.
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Any Project Bond proceeds deposited with the Refunding Trustee and not used to pay the
costs of issuance of the Project Bonds shall be returned to the City for deposit in the
Construction Accounts. Any Refunding Bond proceeds or other money deposited with the
Refunding Trustee not needed to carry out the Refunding Plan shall be returned to the City for
deposit in the Principal and Interest Account to pay interest on the Refunding Bonds on the next
upcoming interest payment date.
(d) Substitution of Acquired Obligations. The City reserves the right at any time to
substitute cash or other direct, noncallable obligations of the United States of America
("Substitute Obligations") for any of the Acquired Obligations if the City obtains (1) an opinion
of Bond Counsel to the effect that the interest on the Refunding Bonds and the Refunded Bonds
will remain excluded from gross income for federal income tax purposes under Sections 103,
148 and 149(d) of the Code, and (2) a verification by a nationally recognized independent
certified public accounting firm that such substitution will not impair the timely payment of the
amounts required to be paid by the Refunding Plan. Any surplus money resulting from the sale,
transfer, other disposition or redemption of the Acquired Obligations and the substitutions
therefor shall be released from the trust estate and transferred to the City to be used for any
lawful purpose
(e) Administration of Refunding Plan. The Refunding Trustee is authorized and
directed to purchase the Acquired Obligations (or Substitute Obligations) and to make the
payments required to be made pursuant to the Refunding Plan from the Acquired Obligations (or
Substitute Obligations) and money deposited with the Refunding Trustee pursuant to this
ordinance and the Refunding Trust Agreement. All Acquired Obligations (or Substitute
Obligations) and money deposited with the Refunding Trustee and any income therefrom shall
be held irrevocably, invested and applied in accordance with the provisions of the applicable
Parity Bond Ordinance authorizing the Refunded Bonds, this ordinance, chapter 39.53 RCW and
other applicable laws of the State and the Refunding Trust Agreement. All necessary and proper
fees, compensation and expenses of the Refunding Trustee and all other costs incidental to the
setting up of the escrow to accomplish the Refunding Plan and costs related to the issuance, sale
and delivery of the Bonds, including bond printing, rating agency fees, verification fees, Bond
Counsel's fees and other related expenses, shall be paid out of the proceeds of the Bonds.
(f) Authorization for Refunding Trust Agreement. To carry out the Refunding Plan,
the Designated Representative is authorized and directed to execute and deliver to the Refunding
Trustee the Refunding Trust Agreement setting forth the duties, obligations and responsibilities
of the Refunding Trustee in connection with the payment, redemption and retirement of the
Refunded Bonds as provided herein and stating that the provisions for payment of the fees,
compensation and expenses of the Refunding Trustee set forth therein are satisfactory to it.
(g) Call for Redemption of the Refunded Bonds. The Designated Representative is
authorized to call the Refunded Bonds for redemption on their applicable Redemption Dates at
par, plus accrued interest. Such call for redemption shall be irrevocable after the delivery of the
Bonds to the Purchaser. The Refunding Trustee is authorized and directed to give or cause to be
given such notices as required, at the times and in the manner required, pursuant to the
ordinances authorizing the issuance of the Refunded Bonds and the Refunding Trust Agreement
to carry out the Refunding Plan.
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III
(h) Additional Finding with Respect to Refunding. Prior to the execution and delivery
of the Bond Purchase Agreement, the Designated Representative shall determine, on behalf of
the City, that the issuance, sale and delivery of the Refunding Bonds will effect a net present
value savings to the City and its ratepayers as set forth in paragraph(i)(2) of Exhibit A. The City
Council finds and determines that such net present value savings is a substantial savings and that
achieving such net present value savings by issuing the Bonds is in the best interest of the City
and in the public interest. In making the finding and determination that the issuance, sale and
delivery of the Bonds will effect such net present value savings, the Designated Representative
shall give consideration to the fixed maturities of the Refunding Bonds and the Refunded Bonds,
the costs related to the issuance, sale and delivery of the Refunding Bonds and the known earned
income from the investment of the proceeds of the issuance and sale of the Refunding Bonds and
the City Contribution, if any,used in the Refunding Plan pending payment and redemption of the
Refunded Bonds.
The Designated Representative further shall find and determine that the money to be
deposited with the Refunding Trustee to carry out the Refunding Plan will discharge and satisfy
the obligations of the City under the applicable Parity Bond Ordinance, and the pledges, charges,
trusts, covenants and agreements of the City therein made or provided for as to the Refunded
Bonds, and that the Refunded Bonds will no longer be deemed to be outstanding under
applicable Parity Bond Ordinance immediately upon the deposit of such money with the
Refunding Trustee.
Section 20. Sale and Delivery of the Bonds.
(a) Manner of Sale of Bonds; Delivery of Bonds. The Designated Representative is
authorized to sell the Bonds by negotiated sale to the Purchaser, based on the assessment of the
Designated Representative of market conditions, in consultation with appropriate City officials
and staff, Bond Counsel and other advisors. In accepting the Final Terms, the Designated
Representative shall take into account those factors that, in the judgment of the Designated
Representative, may be expected to result in the lowest true interest cost to the City. The Bond
Purchase Agreement shall set forth the Final Terms of each Series of Bonds. The Designated
Representative is authorized to execute the Bond Purchase Agreement on behalf of the City, so
long as the terms provided therein are consistent with the terms of this ordinance.
(b) Preparation, Execution and Delivery of the Bonds. The Bonds will be prepared at
City expense and will be delivered to the Purchaser in accordance with the Bond Purchase
Agreement,together with the approving legal opinion of Bond Counsel regarding the Bonds.
Section 21. Official Statement; Continuing Disclosure.
(a) Preliminary Official Statement Deemed Final. The Designated Representative
shall review and, if acceptable to him or her, approve the preliminary Official Statement
prepared in connection with the sale of the Bonds to the public. For the sole purpose of the
Purchaser's compliance with paragraph (b)(1) of Rule 15c2-12, the Designated Representative is
authorized to deem that preliminary Official Statement final as of its date, except for the
omission of information permitted to be omitted by Rule 15c2-12. The City approves the
distribution to potential purchasers of the Bonds of a preliminary Official Statement that has
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been approved by the Designated Representative and been deemed final, if applicable, in
accordance with this subsection.
(b) Approval of Final Official Statement. The City approves the preparation of a final
Official Statement for the Bonds to be sold to the public in the form of the preliminary Official
Statement that has been approved and deemed final in accordance with subsection(a), with such
modifications and amendments as the Designated Representative deems necessary or desirable,
and further authorizes the Designated Representative to execute and deliver such final Official
Statement to the Purchaser. The City authorizes and approves the distribution by the Purchaser of
the final Official Statement so executed and delivered to purchasers and potential purchasers of
the Bonds.
(c) Undertaking to Provide Continuing Disclosure. If necessary to meet the
requirements of paragraph (b)(5) of Rule 15c2-12, as applicable to the Purchaser acting as a
participating underwriter for the Bonds, the Designated Representative is authorized to execute a
written undertaking to provide continuing disclosure for the benefit of holders of the Bonds in
substantially the form attached as Exhibit C.
Section 22. General Authorization and Ratification. The Designated Representative
and other appropriate officers of the City are severally authorized to take such actions and to
execute such documents as in their judgment may be necessary or desirable to carry out the
transactions contemplated in connection with this ordinance, and to do everything necessary for
the prompt delivery of the Bonds to the Purchaser and for the proper application, use and
investment of the proceeds of the Bonds. All actions taken prior to the effective date of this
ordinance in furtherance of the purposes described in this ordinance and not inconsistent with the
terms of this ordinance are ratified and confirmed in all respects.
Section 23. Severability. The provisions of this ordinance are declared to be separate
and severable. If a court of competent jurisdiction, all appeals having been exhausted or all
appeal periods having run, finds any provision of this ordinance to be invalid or unenforceable as
to any person or circumstance, such offending provision shall, if feasible, be deemed to be
modified to be within the limits of enforceability or validity. However, if the offending provision
cannot be so modified, it shall be null and void with respect to the particular person or
circumstance, and all other provisions of this ordinance in all other respects, and the offending
provision with respect to all other persons and all other circumstances, shall remain valid and
enforceable.
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Section 24. Effective Date of Ordinance. This ordinance shall take effect and be in
force from and after its passage and five days following its publication as provided by law.
PASSED by the City Council and APPROVED by the Mayor of the City of Pasco,
Washington, at a regular open public meeting, this 30th day of November,2015.
Matt Watkins, Mayor
At ES
i1 ' 1
Debra L. Clark, City Clerk
APPROVED AS TO FORM:
Foster Pepper PLLC
Bond Counsel
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1
EXHIBIT A
DESCRIPTION OF THE BONDS
(i) Principal Amount. The Bonds may be issued in one or more Series and shall not exceed
the aggregate principal amount of$15,000,000.
(ii) Date or Dates. Each Bond shall be dated its Issue Date, which date may not be later
than December 31,2016.
(iii) Denominations, Name, etc. The Bonds shall be issued in Authorized Denominations
and shall be numbered separately in the manner and shall bear any name and additional
designation as deemed necessary or appropriate by the Designated Representative.
(iv) Interest Rate(s). Each Bond shall bear interest at a fixed rate per annum (computed on
the basis of a 360-day year of twelve 30-day months) from the Issue Date or from the
most recent date for which interest has been paid or duly provided for, whichever is
later. One or more rates of interest may be fixed for the Bonds. No rate of interest for
any Bond may exceed 5.00%, and the true interest cost to the City for the Bonds may
not exceed 4.50%.
(v) Payment Dates. Interest shall be payable semiannually on each June 1 and December 1
(or such other semiannual dates acceptable to the Designated Representative),
commencing no later than the next such semiannual date following the Issue Date.
Principal payments shall commence on a date acceptable to the Designated
Representative and shall be payable at maturity or in mandatory redemption
installments annually thereafter, on dates acceptable to the Designated Representative.
(vi) Final Maturity. The Bonds shall mature no later than the date that is 30 years after the
Issue Date.
(vii) Redemption Rights. The Designated Representative may approve in the Bond Purchase
Agreement provisions for the optional and mandatory redemption of Bonds, subject to
the following:
(1) Optional Redemption. Any Bond may be designated as being (A) subject to
redemption at the option of the City prior to its maturity date on the dates and at
the prices set forth in the Bond Purchase Agreement; or (B) not subject to
redemption prior to its maturity date. If a Bond is subject to optional redemption
prior to its maturity, it must be subject to such redemption on one or more dates
occurring not more than 101 years after the Issue Date.
(2) Mandatory Redemption. Any Bond may be designated as a Term Bond, subject to
mandatory redemption prior to its maturity on the dates and in the amounts set
forth in the Bond Purchase Agreement.
(viii) Price. The purchase price for the Bonds may not be less than 95% or more than 120%
of the stated principal amount of the Bonds
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51476003.3
(ix) Other Terms and Conditions.
(1) The Designated Representative may determine whether it is in the City's best
interest to provide for bond insurance or other credit enhancement; and may
accept such additional terms, conditions and covenants as he or she may
determine are in the best interests of the City, consistent with this ordinance.
(2) The Designated Representative must have determined that the Parity Conditions
have been met and satisfied as of the Issue Date of the Bonds.
(3) The Refunding Bonds shall produce a minimum net present value savings to the
City and its ratepayers of 4.0% (as a percentage of the Refunded Bonds). Net
present value savings means the aggregate difference between (i) annual debt
service on the Refunded Bonds, less (ii) annual debt service on the Refunding
Bonds (including expenses related to costs of issuance of such Refunding Bonds)
discounted to the Issue Date using the yield on the Bonds as the discount rate,
plus (iii) excess cash, if any distributed to the City on the Issue Date, and less
(iv)the amount of the City Contribution,if any,made on such Issue Date.
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51476003.3
EXHIBIT B
PARITY CONDITIONS
(a) There shall be no deficiency in the Bond Fund.
(b) The ordinance providing for the issuance of the Future Parity Bonds shall provide
that all ULID Assessments shall be paid directly into the Bond Fund, except for any prepaid
assessments permitted by law to be paid into a construction fund or account.
(c) The ordinance providing for the issuance of such Future Parity Bonds shall
provide for the deposit into the Reserve Account(if such Future Parity Bonds are secured by the
Reserve Account) of (i) an amount equal to the Reserve Requirement for those Future Parity
Bonds from the Future Parity Bond proceeds, or (ii)Reserve Insurance or Alternate Security or
an amount plus Reserve Insurance or Alternate Security equal to the Reserve Requirement for
those Future Parity Bonds, or(iii)to the extent that the Reserve Requirement is not funded from
Future Parity Bond proceeds or Reserve Insurance or Alternate Security at the time of issuance
of those Future Parity Bonds, by no later than the fifth anniversary date from the dated date of
the respective issue of Future Parity Bonds from ULID Assessments, if any, levied and first
collected for the payment of the principal of and interest on those Future Parity Bonds and, to the
extent that ULID Assessments are insufficient, then from the Net Revenue of the Waterworks
Utility in approximately equal annual payments,the Reserve Requirement for those Future Parity
Bonds. No Reserve Insurance or Alternate Security may be used to satisfy the Reserve
Requirement for Future Parity Bonds unless (i)the insurance policy or Alternate Security is non-
cancelable and (ii)the insurer or provider of the Alternate Security as of the time of issuance of
such insurance or Alternate Security is rated in the highest rating categories by both Moody's
Investors Service, Inc., and Standard& Poor's Ratings Services; however, when the
Outstanding Parity Bonds are no longer outstanding, the Reserve Insurance or Alternate
Security may be rated as of the time of issuance of such insurance or Alternate Security in one
of the two-highest categories by either Moody's Investors Service, Inc., or Standard& Poor's
Ratings Services.
(d) The ordinance authorizing the issuance of such Future Parity Bonds shall provide
for the payment of mandatory redemption or sinking fund requirements into the Bond Fund for
any Term Bonds to be issued and for regular payments to be made for the payment of the
principal of such Term Bonds on or before their maturity, or, as an alternative, the mandatory
redemption of those Term Bonds prior to their maturity date from money in the Principal and
Interest Account.
(e) There shall be on file from a licensed professional engineer experienced in the
design, construction and operation of municipal utilities, or from an independent certified public
accountant, a certificate showing that in his or her professional opinion the Net Revenue of the
Waterworks Utility for any 12 consecutive calendar months out of the immediately preceding 24
calendar months shall be equal to the Coverage Requirement for each year thereafter, except that
such certificate may be provided by a City representative if it is based solely upon actual
historical Net Revenue of the Waterworks Utility without any adjustment.
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51476003.3
The certificate, in estimating the Net Revenue of the Waterworks Utility available
for debt service, shall use the historical Net Revenue of the Waterworks Utility for any 12
consecutive months out of the 24 months immediately preceding the month of delivery of the
Future Parity Bonds. Net Revenue of the Waterworks Utility may be adjusted to reflect:
(1) Any changes in rates in effect and being charged or expressly adopted by
ordinance to take effect within 180 days after the date of this Certificate;
(2) Income derived from customers of the Waterworks Utility that have
become customers during the 12 consecutive month period or thereafter adjusted to
reflect one year's net revenue from those customers;
(3) Revenue from any customers to be connected to the Waterworks Utility
who have paid the requiredconnection charges;
(4) Revenue received or to be received which is derived from any person,
firm, corporation or municipal corporation under any executed contract for water, sewage
disposal or other utility service, which revenue was not included in the historical Net
Revenue of the Waterworks Utility;
(5) The engineer's or accountant's estimate of the Net Revenue of the
Waterworks Utility to be derived from customers to connect within 180 days after the
date of the completion of the additions to and improvements and extensions of the
Waterworks Utility to be paid for out of the proceeds of the sale of the additional Future
Parity Bonds or from other additions to and improvements and extensions of the
Waterworks Utility then under construction and not fully connected to the facilities of the
Waterworks Utility when such additions, improvements and extensions are completed;
and
(6) Any increases or decreases in Net Revenue as a result of any actual or
reasonably anticipated changes in Operating and Maintenance Expense subsequent to the
12 month period.
If Future Parity Bonds proposed to be so issued are for the sole purpose of refunding
outstanding bonds payable from the Bond Fund, such certification of coverage shall not be
required if the amount required for the payment of the principal and interest in each year for the
refunding bonds is not increased over the amount for that year required for the bonds to be
refunded thereby and if the maturities of such refunding bonds are not extended beyond the
maturities of the bonds to be refunded thereby.
Prior: Ordinance No. 3567, Section 16(2002 Bonds)
Ordinance No. 3740, Section 16(2005 Bonds)
Ordinance No. 3835, Section 17 (2007 Bonds)
Ordinance No. 3915, Section 18 (2009 Bonds)
Ordinance No. 3962, Section 21 (2010 Bonds)
Ordinance No. 4126, Section 16 (2013 Bonds)
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51476003.3
EXHIBIT C
[Form of]
UNDERTAKING TO PROVIDE CONTINUING DISCLOSURE
City of Pasco,Washington
[Name of Series]
The City of Pasco, Washington(the "City"),makes the following written Undertaking for
the benefit of holders of the above-referenced bonds (the "Bonds"), for the sole purpose of
assisting the Purchaser in meeting the requirements of paragraph (b)(5) of Rule 15c2-12, as
applicable to a participating underwriter for the Bonds. Capitalized terms used but not defined
below shall have the meanings given in Ordinance No.4254 of the City(the"Bond Ordinance").
(a) Undertaking to Provide Annual Financial Information and Notice of Listed
Events. The City undertakes to provide or cause to be provided, either directly or through a
designated agent, to the MSRB, in an electronic format as prescribed by the MSRB,
accompanied by identifying information as prescribed by the MSRB:
(i) Annual financial information and operating data of the type included in
the final official statement for the Bonds and described in paragraph (b) ("annual
financial information");
(ii) Timely notice (not in excess of 10 business days after the occurrence of
the event) of the occurrence of any of the following events with respect to the Bonds:
(1)principal and interest payment delinquencies; (2)non-payment related defaults, if
material; (3)unscheduled draws on debt service reserves reflecting financial difficulties;
(4)unscheduled draws on credit enhancements reflecting financial difficulties;
(5) substitution of credit or liquidity providers, or their failure to perform; (6) adverse tax
opinions, the issuance by the Internal Revenue Service of proposed or final
determinations of taxability, Notice of Proposed Issue (IRS Form 5701 — TEB) or other
material notices or determinations with respect to the tax status of the Bonds;
(7)modifications to rights of holders of the Bonds, if material; (8)bond calls (other than
scheduled mandatory redemptions of Term Bonds), if material, and tender offers;
(9) defeasances; (10)release, substitution, or sale of property securing repayment of the
Bonds, if material; (11)rating changes; (12)bankruptcy, insolvency, receivership or
similar event of the City, as such "Bankruptcy Events" are defined in Rule 15c2-12;
(13)the consummation of a merger, consolidation, or acquisition involving the City or
the sale of all or substantially all of the assets of the City other than in the ordinary course
of business, the entry into a definitive agreement to undertake such an action or the
termination of a definitive agreement relating to any such actions, other than pursuant to
its terms, if material; and (14) appointment of a successor or additional trustee or the
change of name of a trustee, if material.
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51476003.3
(iii) Timely notice of a failure by the City to provide required annual financial
information on or before the date specified in paragraph(b).
(b) Type of Annual Financial Information Undertaken to be Provided. The annual
financial information that the City undertakes to provide in paragraph(a):
(i) Shall consist of(1) annual financial statements prepared (except as noted
in the financial statements) in accordance with applicable generally accepted accounting
principles applicable to local governmental units of the State such as the City, as such
principles may be changed from time to time, which statements may be unaudited,
provided, that if and when audited financial statements are prepared and available they
will be provided; (2) a statement of authorized, issued and outstanding bonded debt
secured by the Net Revenue of the Waterworks Utility; (3) debt service coverage ratios;
and(4)general customer statistics for the Waterworks Utility;
(ii) Shall be provided not later than the last day of the ninth month after the
end of each fiscal year of the City(currently, a fiscal year ending December 31), as such
fiscal year may be changed as required or permitted by State law, commencing with the
City's fiscal year ending December 31, 2015; and
(iii) May be provided in a single or multiple documents, and may be
incorporated by specific reference to documents available to the public on the Internet
website of the MSRB or filed with the SEC.
(c) Amendment of Undertaking. This Undertaking is subject to amendment after the
primary offering of the Bonds without the consent of any holder of any Bond, or of any broker,
dealer, municipal securities dealer, participating underwriter, Rating Agency or the MSRB,
under the circumstances and in the manner permitted by Rule 15c2-12. The City will give notice
to the MSRB of the substance (or provide a copy) of any amendment to the Undertaking and a
brief statement of the reasons for the amendment. If the amendment changes the type of annual
financial information to be provided, the annual financial information containing the amended
financial information will include a narrative explanation of the effect of that change on the type
of information to be provided.
(d) Beneficiaries. This Undertaking shall inure to the benefit of the City and the
holder of each Bond, and shall not inure to the benefit of or create any rights in any other person.
(e) Termination of Undertaking. The City's obligations under this Undertaking shall
terminate upon the legal defeasance of all of the Bonds. In addition, the City's obligations under
this Undertaking shall terminate if the provisions of Rule 15c2-12 that require the City to comply
with this Undertaking become legally inapplicable in respect of the Bonds for any reason, as
confirmed by an opinion of Bond Counsel delivered to the City, and the City provides timely
notice of such termination to the MSRB.
(f) Remedy for Failure to Comply with Undertaking. As soon as practicable after the
City learns of any failure to comply with this Undertaking, the City will proceed with due
diligence to cause such noncompliance to be corrected. No failure by the City or other obligated
person to comply with this Undertaking shall constitute a default in respect of the Bonds. The
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51476003.3
sole remedy of any holder of a Bond shall be to take action to compel the City or other obligated
person to comply with this Undertaking, including seeking an order of specific performance from
an appropriate court.
(g) Designation of Official Responsible to Administer Undertaking. The Finance
Manager or his or her designee is the person designated, in accordance with the Bond Ordinance,
to carry out the Undertaking in accordance with Rule 15c2-12, including, without limitation, the
following actions:
(i) Preparing and filing the annual financial information undertaken to be
provided;
(ii) Determining whether any event specified in paragraph (a) has occurred,
assessing its materiality, where necessary, with respect to the Bonds, and preparing and
disseminating any required notice of its occurrence;
(iii) Determining whether any person other than the City is an "obligated
person" within the meaning of Rule 15c2-12 with respect to the Bonds, and obtaining
from such person an undertaking to provide any annual financial information and notice
of listed events for that person required under Rule 15c2-12;
(iv) Selecting, engaging and compensating designated agents and consultants,
including financial advisors and legal counsel, to assist and advise the City in carrying
out this Undertaking; and
(v) Effecting any necessary amendment of this Undertaking.
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51476003.3
i
4
CERTIFICATION
I, the undersigned, City Clerk of the City of Pasco, Washington (the "City"), hereby
certify as follows:
1. The attached copy of Ordinance No. 4254 (the "Ordinance") is a full, true and
correct copy of an ordinance duly passed at a regular meeting of the City Council of the City
held at the regular meeting place thereof on November 30, 2015, as that ordinance appears on the
minute book of the City.
2. The Ordinance will be in full force d effect fi,vfive days after publication in the
City's official newspaper, which publication date i 4hF;Q Y2015.
3. A quorum of the members of the City Council was present throughout the
meeting and a majority of the members voted in the proper manner for the passage of the
Ordinance.
Dated: LA.)EitA662
, 2015.
CITY OF PASCO,WASHINGTON
41.?(Ak_ / -1
Debra L. Clark, City Clerk
51476003.3