HomeMy WebLinkAbout2436 OrdinanceCITY OF PASCO, WASHINGTON
ORDINANCE NO. 2436
AN ORDINANCE adopting a system or plan of addi-
tions to and betterments and extensions of the water-
works utility of the City, including the sanitary
sewerage system and the system of storm or surface
water sewers as a part thereof; providing for the
issuance and sale of $800,000.00 par value of "Water
and Sewer Revenue Bonds, 1983," for the purpose of
obtaining a part of the funds with which to carry out
such system or plan; fixing the date, form, denomina-
tion, maturities, interest rates, terms and covenants
of such bonds; providing for the sale and delivery of
such bonds to Foster & Marshall/American Express Inc.
of Seattle. Washington; and ratifying and confirming
actions heretofore taken by the City Council in
carrying out such system or plan.
WHEREAS, the City of Pasco, Washington (the "City"), by
Ordinance No. 531, passed March 7, 1944, provided that the
system of sewerage of the City, including all additions, exten-
sions 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 par value of "Water and Sewer Revenue
Bonds, 1954" (the "1954 Bonds"); and
WHEREAS, by Section 13 of such Ordinance No. 768, 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 the "1954 Bonds," providing
the following conditions shall be met and complied with at the
time of the issuance of such additional bonds:
"(a) That all payments required to be made
into the bond redemption funds for the outstanding
'Special Fund Water-Sewage Revenue Bonds, Series A,'
dated March 1, 1944, the 'Special Fund Water-Sewage
Revenue Bonds, 1944-1946, Series B,' dated January 1,
1946, and the 'Water Revenue Bonds, 1948,' dated
March 1, 1948, shall have been made; and
"(b) That all payments required by this ordi-
nance 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 issu-
ance 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 accumu-
lated 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 addi-
tional 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 experi-
enced in municipal utilities and licensed to practice
in the State of Washington; PROVIDED, HOWEVER, that
this certificate shall not be required in the event
that the additional bonds proposed to be so issued
are issued for the purpose of refunding outstanding
Water Revenue Bonds or Water and Sewer Revenue Bonds
and the average annual debt service requirements of
such proposed additional revenue bonds are not
increased over the requirement for the bonds being so
refunded:"
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" (the "1963 Refunding Bonds"), 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 1963 Refunding Bonds were issued on a
parity of lien with the outstanding 1954 Bonds 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 par value of
"Water and Sewer Revenue Bonds, 1964" (the "1964 Bonds"), 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 1964 Bonds were issued
on a parity of lien with the outstanding 1954 Bonds and 1963
Refunding Bonds 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. 1466 passed
March 2, 1971, heretofore issued $900,000 par value of "Water
and Sewer Revenue Bonds, 1971" (the "1971 Bonds') 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 1971 Bonds were issued
on a parity of lien with the outstanding 1954 Bonds, 1963
Refunding Bonds and 1964 Bonds 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. 1636 passed
March 19, 1974, heretofore issued $900,000 par value of "Water
and Sewer Revenue Refunding Bonds, 1974" (the u1974 Refunding
Bonds"), for the purpose of providing the funds with which to
refund, pay, retire and cancel on September 1, 1983, the then
outstanding 1971 Bonds, which 1974 Refunding Bonds were issued
on a parity of lien with the outstanding 1954 Bonds, 1963
Refunding Bonds, 1964 Bonds and 1971 Bonds prior to their
retirement on September 1, 1983, pursuant to the provisions of
Section 13 of Ordinance No. 768, as amended by Ordinance No.
774; and
WHEREAS, the City Council has determined that it is neces-
sary and in the best interests of the City that certain addi-
tional improvements be made and there be adopted a system or
plan of additions to and betterments and extensions of the
Waterworks Utility of the City; and
WHEREAS, the City Council has determined that it is neces-
sary to issue and sell $800,000 par value of water and sewer
revenue bonds to provide a part of the funds necessary to carry
out such system or plan providing for additions to and better-
ments and extensions of the Waterworks Utility and to pay the
costs of issuance and sale of the water and sewer revenue bonds
provided for herein; 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) "Annual Debt Service" for the Bonds and any
Parity Bonds for any year shall mean 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.
(b) "Average Annual Debt Service" shall mean the sum
of the Annual Debt Service for the remaining years to the last
scheduled maturity of the Bonds and Parity Bonds divided by the
number of those years.
(c) "City" shall mean the City of Pasco, Washington,
a duly organized code city.
(d) "Bonds" shall mean the "Water and Sewer Revenue
Bonds, 1983," authorized to be issued by this ordinance.
(e) "Bond Fund" shall mean the "Water and Sewer
Revenue Bond Redemption Fund, 1983," of the City herein created
and established in the office of the Treasurer of the City.
(f) "1954 Bonds" shall mean the outstanding "Water
and Sewer Revenue Bonds, 1954," dated January 1, 1954.
(g) "1963 Refunding Bonds" shall mean the outstanding
"Water and Sewer Revenue Refunding Bonds, 1963," dated January
1, 1963.
(h) "1964 Bonds" shall mean the outstanding "Water
and Sewer Revenue Bonds, 1964," dated December 1, 1964.
(i) "1971 Bonds" shall mean the outstanding "Water
and Sewer Revenue Bonds, 1971," dated March 1, 1971.
(j) "1974 Refunding Bonds" shall mean the outstanding
"Water and Sewer Revenue Refunding Bonds, 1974," dated April 1,
1974, issued for the purpose of providing the funds with which
to refund, pay, retire and cancel on September 1, 1983, the then
outstanding 1971 Bonds.
(k) "Revenue of the Waterworks Utility" of the City
shall mean all the earnings and revenue received by the Water-
works Utility of the City from any source whatsoever except
general ad valorem taxes, proceeds from the sale of City prop-
erty and bond proceeds.
(1) "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.
(m) "Parity Bonds" shall mean any and all water and
sewer revenue bonds of the City issued after the date of the
issuance of the 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 Refunding Bonds, 1964 Bonds
1971 Bonds prior to their retirement on September 1, 1983, the
1974 Refunding Bonds and the Bonds.
(n) "Water and Sewer Revenue Fund" shall mean that
special fund of the City into which all of the Revenue of the
Waterworks Utility of the City shall be deposited.
(o) "Waterworks Utility" of the City shall 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.
Section 2. 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 of the City described
in Exhibit A attached hereto and by this reference made a part
hereof. 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,
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 consulting engineers
of the City.
The City Council may modify the details of the foregoing
system or plan where, in its judgment, it appears advisable if
such modifications do not substantially alter the purposes of
that system or plan.
The life of the improvements comprising the foregoing
system or plan of additions to and betterments and extensions of
the Waterworks Utility of the City is declared to be at least
fifteen years. The estimated cost of the acquisition, construc-
tion, installation and financing of the above-described improve-
ments is declared to be approximately $1,422,000. Such cost
shall be paid from from the proceeds of the Bonds authorized in
this ordinance, from money to be received from the Port of Pasco
and Columbia Basin College, an Economic Development Administra-
tion grant and from other money of the City made available
therefor.
Section 3. The City Council finds that all payments
required by the respective bond ordinances for the 1954 Bonds,
the 1963 Refunding Bonds, the 1964 Bonds, the 1971 Bonds and the
1974 Refunding Bonds have been provided for or made into the
respective bond redemption funds for each issue of such out-
standing bonds and that no deficiency exists in such funds or
the Reserve Accounts therein; that provision is hereinafter made
for the accumulation in the Reserve Account of the Bond Fund of
the required reserve amount for the Bonds; and that there will
be on file with the City Clerk before the delivery of the Bonds
to the purchaser thereof a certificate of C H2M-Hi ll
consulting engineer of Bellevue
, Washington, an independent
professional engineering firm, certifying that in its profes-
sional opinion, the Revenue of the Waterworks Utility is suffi-
cient to meet the 1.4 coverage requirement as specified in
subparagraph (d) of Section 13 of Ordinance No. 768, as amended
by Ordinance No. 774.
Section 4. For the purpose of providing a part of the cost
of carrying out the system or plan of additions and betterments
to the Waterworks Utility of the City herein specified, adopted
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and ordered to be carried out, the City shall issue the Bonds in
the aggregate principal amount of $800,000. The Bonds shall be
dated March 1, 1983; shall be in denominations of $5,000 each;
shall be numbered from 1 to 160, inclusive; shall bear interest
at the rates hereinafter set forth, payable on September 1,
1983, and semiannually thereafter on each succeeding March 1 and
September 1, as evidenced by coupons to be attached to the Bonds
representing interest to maturity. If any Bond is not redeemed
upon proper presentment at its maturity date, the City shall be
obligated to pay the coupon rate for each such Bond from and
after its maturity date until such Bond, both principal and
interest, shall have been paid in full or until sufficient money
for such payment in full is on deposit in the Bond Fund and such
Bond has been duly called for payment by the City Treasurer's
publishing notice of such call once in the official newspaper of
the City, or, if there is no official newspaper, in a newspaper
of general circulation in the City The Bonds shall be num-
bered, bear interest and mature on March 1 of each year as
follows:
Bond Numbers
(Inclusive) Amounts
Interest
Rates
Maturity
Years
1 to 4 $ 20,000 5•75% 1984
5 to 8 20,000 6 50% 1985
9 to 12 20,000 7 00% 1986
13 to 17 25,000 7 50% 1987
18 to 22 25,000 7 75% 1988
23 to 27 25,000 8 00% 1989
28 to 34 35,000 8.25% 1990
35 to 41 35,000 8.50% 1991
42 to 48 35,000 8 75% 1992
49 to 55 35,000 9 00% 1993
56 to 105 250,000 9 20% 1994
106 to 160 275,000 9 40% 1995
Both principal of and interest on the Bonds shall be
payable in lawful money of the United States of America at the
Office of the City Treasurer, or, at the option of the holder,
at either fiscal agency of the State of Washington in 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 5. The City reserves the right to redeem prior to
their stated maturity dates the Bonds as a whole, or in part in
inverse numerical order, on March 1, 1993, or on any interest
payment date thereafter, at par plus accrued interest to date of
redemption.
Notice of any call for redemption of the Bonds prior to
their stated maturity dates shall be published once in the
official newspaper of the City, or, if there is no official
newspaper, in a newspaper of general circulation in the City,
not less than thirty nor more than forty-five days prior to the
call date and a copy of such notice shall be mailed to the main
office of Foster & Marshall/American Express Inc. in Seattle,
Washington, or to its successor. 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, but the mailing of such notice to such New York firms
shall not be a condition precedent to the redemption of such
Bonds. Interest on any Bonds so called for redemption shall
cease on such call date upon payment of the redemption price
into the Bond Fund.
The City reserves the right to purchase any or all of the
Bonds in the open market at any time at a price not in excess of
par plus accrued interest to date of purchase.
Section 6. There is 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 Bond Redemption Fund,
1983" (herein defined as the "Bond Fund"). Such fund is divided
into two accounts, namely, a "Principal and Interest Account"
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and a "Reserve Account." So long as Bonds are outstanding
against such fund, the City Treasurer shall set aside and pay
into such fund out of the Revenue of the Waterworks Utility of
the City a fixed amount without regard to any fixed proportion
on or before the 20th day of each month, as follows:
(a) Into the Principal and Interest Account,
commencing with the month of March 1983 and continu-
ing as long as any of the Bonds is outstanding and
unpaid an amount which, together with the accrued
interest received from the sale of the Bonds, if any,
to be deposited therein, will equal 1/6th of the
interest to become due and payable on the next
interest payment date, and beginning with the month
of March 1983 and continuing as long as any of the
Bonds is outstanding and unpaid an amount which will
equal 1/12th of the principal to become due and
payable on the next principal payment date on all of
the Bonds then outstanding.
(b) Into the Reserve Account, commencing with
the month of March 1983, an amount equal to the
Average Annual Debt Service requirements of the
Bonds, which amount shall be accumulated in substan-
tially equal monthly payments and shall be totally
accumulated by no later than March 1, 1988.
The Reserve Account may be accumulated from any other funds
which the City may have available for such purpose in addition
to using Revenue of the Waterworks Utility therefor.
The City further agrees that when such required amounts
have been paid into the Reserve Account, it will, at all times,
except for withdrawals therefrom as authorized herein, maintain
those amounts therein until there is a sufficient amount in the
Bond Fund, including the Reserve Account therein, to pay the
principal of and interest on all outstanding Bonds to the final
maturity thereof, at which time the money in the Bond Fund,
including the Reserve Account therein, may be used to pay such
principal and interest.
In the event that there shall be a deficiency in the Bond
Fund to meet maturing installments of either principal or
interest, as the case may be, on the Bonds, such deficiency
shall be made up from the Reserve Account by the withdrawal of
cash therefrom for the purpose. Any deficiency created in the
Reserve Account by reason of any such withdrawal shall then be
made up from the Revenue of the Waterworks Utility of the City
first available after making necessary provision for the
required payments into the Bond Fund.
All money in the Reserve Account above provided for 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 such money will be
needed. 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 accumu-
lated therein, after which such interest shall be deposited in
the Principal and Interest Account.
Funds in the Water and Sewer Revenue Fund shall be used in
the following order of priority:
(1) To pay Operating and Maintenance Expense;
(2) To make all payments required to be made into
the outstanding parity bond Redemption Funds and
the Bond Fund to pay and secure the payment of
the Annual Debt Service on all outstanding
parity bonds and Bonds;
(3) To make all payments required to be made into
other revenue bond redemption funds created to
pay the debt service on any revenue obligation
having a lien upon the Revenue of the Waterworks
Utility junior to the lien of the Bonds; and
(4) To make necessary additions, betterments,
improvements or repairs to the Waterworks
Utility, and to retire by redemption or purchase
any outstanding Parity Bonds and Bonds, or for
any other lawful 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 holder of any Bond may bring
suit against the City to compel it to do so.
Section 7. The Revenue of the Waterworks Utility of the
City is pledged to such payments, and the Bonds shall constitute
a lien and charge upon such Revenue of the Waterworks Utility
prior and superior to any other charges whatsoever, excluding
Operating and Maintenance Expense, except that the lien and
charge upon such revenue for
the lien and charge thereon f
Refunding Bonds, 1964 Bonds,
the Bonds shall be on a parity with
or the outstanding 1954 Bonds, 1963
1971 Bonds prior to their retire-
ment on September 1, 1983, and 1974 Refunding Bonds as herein
provided and any additional Parity Bonds hereafter issued.
Section 8. 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 Operat-
ing and Maintenance Expense thereof and the debt service on the
outstanding 1954 Bonds, 1963 Refunding Bonds, 1964 Bonds, the
1971 Bonds (together with the principal and interest received on
the "Acquired Obligations" as defined in Ordinance No. 1636,
prior to the retirement of the 1971 Bonds) and the 1974 Refund-
ing Bonds 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 Bonds as such interest
becomes payable and to pay and redeem all of the Bonds at
maturity. The City Council further declares that in creating
the Bond Fund and in fixing the amounts to be paid into the same
as aforesaid it has exercised due regard for Operating and
Maintenance Expense 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
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Maintenance Expense and debt service requirements of such
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 9. The City further covenants and agrees with the
owner and holder 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 of the City unless provi-
sion is made for payment into the Bond Fund of a sum
sufficient to pay the principal of and interest on
all the outstanding Bonds in accordance with the
terms thereof; and further 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
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 Bonds as the revenue available for
debt service for such 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 such Bonds from the entire utility
for the same period. Any such money so paid into the
Bond Fund shall be used to retire outstanding Bonds
at the earliest possible date.
(b) It will maintain in good condition and
operate the Waterworks Utility of the City and will
establish, maintain and collect such rates as will
produce revenue from such utility sufficient to
permit payment into the Bond Fund of the amounts
required for the payment of the principal of and
interest on the Bonds asl i 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 Refunding Bonds, 1964 Bonds, 1971
Bonds (prior to their retirement on September 1,
1983), 1974 Refunding Bonds and Bonds and otherwise
meet the obligations of the City as herein set forth.
(c) It will, while any of the Bonds remain
outstanding, keep proper books of accounts and
records separate and apart from other accounts and
records, in which complete and correct entries will
be made of all transactions relating to the Water-
works Utility of the City, and it will furnish the
original purchaser of the 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
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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 out-
standing Bonds the right at all reasonable times to
inspect such utility and all of the records, accounts
and data of the City relating thereto. Such operat-
ing 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;
(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 autho-
rized, such analysis or recapitulation to show
balance at beginning of period, deposits and with-
drawals 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 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) It will establish, maintain and collect
such rates and charges for water and for sanitary
sewage service as long as any of the Bonds is out-
standing as well make available for the payment of
the principal of and interest on all such Bonds and
the outstanding 1954 Bonds, 1963 Refunding Bonds,
1964 Bonds, 1971 Bonds (prior to their retirement on
September 1, 1983), 1974 Refunding Bonds 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 outstand-
ing bonds after deducting Operating and Maintenance
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Expense from the Revenue of the Waterworks Utility
of the City, but before depreciation and any City-
imposed taxes upon such utility.
(e) 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 RCW 31.21.290 and 35.67.200, et seq.,
and all acts amendatory thereof.
(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 Expense. If, as, and
when, the United States of America, or some agency
thereof, shall provide for war risk insurance, the
City further agrees to take out and maintain such
insurance on all or such portions of said utility on
which such war risk insurance may be written in an
amount or amounts to cover adequately the value
thereof.
(g) So long as any Bonds are outstanding it
will not impose any tax or excise on the purchasers
of water or any excise or tax measured by the amount
of water so used, or sewerage services furnished or
the amounts of the bills payable for water so used or
sewerage services furnished.
(h) It will maintain its corporate identity and
existence so long as any Bonds remain outstanding.
(i) It will not grant any competing utility
service franchise and will use all legal means to
prevent competition with its utility.
(3) It will spend the proceeds of the Bonds
with due diligence to completion of the purposes
specified herein and will make no use of the proceeds
of the Bonds or other funds of the City at any time
during the term of the Bonds which will cause such
Bonds to be arbitrage bonds within the meaning of
Section 103(c) of the United States Internal Revenue
Code of 1954, as amended, and applicable regulations
thereunder.
Section 10. The Bonds shall be printed on lithographed or
good bond paper in a form consistent with the provisions of this
ordinance, shall be signed by the facsimile signature of the
Mayor, attested by the manual signature of the City Clerk, shall
have a facsimile reproduction of the seal of the City printed
thereon, and the coupons shall bear the facsimile signatures of
the Mayor and the City Clerk.
Section 11. The City further covenants with the owner and
holder of each of the 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
water and sewer 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 water and sewer revenue bonds, warrants or other
obligations, 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 12. 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 Bonds or such
portion thereof included in the refunding plan as the same
become due and payable and to refund all such then outstanding
Bonds and to pay the costs of refunding, and shall have irrevo-
cably set aside for and pledged to such payment and refunding,
money and/or 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 Bonds, then
- 16 -
in that case all right and interest of the owners or holders of
the 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 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 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 Bonds included in the refunding plan, then only the debt
service on the 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 13. Foster & Marshall/American Express Inc, of
Seattle, Washington, has submitted an offer to purchase the
Bonds at a price of $ 97 00 per each $100.00 par value thereof
plus accrued interest to the date of delivery of the Bonds, the
City to furnish the printed Bonds and the unqualified approving
legal opinion of Messrs Roberts & Shefelman, municipal bond
counsel of Seattle, Washington. Bond counsel shall not be
required to review or express any opinion concerning the
completeness or accuracy of any official statement, offering
- 17 -
circular or other sales material issued or used in connection
with the Bonds, and bond counsel's opinion shall so state. The
City Council, deeming that it is in the best interest of the
City that such offer be accepted, accepts the same. The Bonds
shall, therefore, immediately upon their execution be delivered
to Foster & Marshall/American Express Inc. upon payment therefor
In accordance with such offer. The accrued interest received,
If any, shall be deposited in the Bond Fund.
There is created in the office of the City Treasurer a
special fund of the City to be known an designated as the
"Water and Sewer Construction Fund, 1983." The principal
proceeds received from the issuance and sale of the Bonds shall
be deposited in the "Water and Sewer Construction Fund, 1983,"
and shall be used to pay the costs of carrying out the system or
plan of additions to and betterments and extensions of the
Waterworks Utility of the City specified, adopted and ordered to
be carried out herein and the expenses incurred in the issuance
of the Bonds. Pending the expenditure of such principal pro-
ceeds out of the Water and Sewer Construction Fund, 1983, the
money in such fund may be invested in any legal investment and
the investment income may be retained in such fund and used for
the purposes of such fund.
The appropriate officers of the City are authorized to
perform such duties and execute such documents as necessary to
carry out the purposes of the ordinance
Section 14. All actions heretofore taken by the City
consistent with the provisions of this Ordinance are ratified,
confirmed and approved.
FORM APPROVED:
A-
PASSED by the City Council of the City of Pasco,
Washington, and APPROVED by the Mayor at a special open public
meeting thereof, of which due notice was given in the manner
provided by law, this 28th day of February, 1983.
Mayor
ity Attorney
0217p
ORDINANCE NO 2436
EXHIBIT A
The three (3) major elements of the project consist of
1 Construction of a transmission intertie line from the
Riverview Heights Booster Station to the East Pasco
elevated tank located on Oregon Street, together with
a transmission line from the Fifth Street elevated tank
to the East Pasco elevated tank, together with lesser
transmission lines
Major quantities are approximately
1,200 feet of 20-inch main
15,500 feet of 18-inch main
11,500 feet of 16-inch main
1,500 feet of 12-inch main
2 Installation of 190 feet of raw water line over the dike to
the raw water intake facility, along with installing a larger
replacement pump and motor in the intake facility
3 Construction of a booster station at the base of the East
Pasco elevated tank
AFFIDAVIT OF PUBLICATION
COUNTY OF
Franklin
)
)ss
STATE OF WASHINGTON
)
Phyllis Graves , being first duly sworn on oath deposes
she Principal Clerk and says is the of the Tr-City Herald,
a daily newspaper That said newspaper is a legal newspaper and has been approved as a
legal newspaper by order of the superior court in the county in which it is published and
it is now and has been for more than six months prior to the date of the publication
hereinafter referred to, published in the English language continually as a daily news-
Franklin paper in County,
Washington, and is now and during all of said time was printed in an office maintained
at the aforesaid place of publication of said newspaper That the annexed is a true
copy of a legal advertisement
Ord. # 2436
as it was printed in the regular and entire issue of the Tr-City Herald itself and not in a
supplement thereof, for a period of one time ZinieViarWas, commencing
on the
4th
day of Mar. ,19 83 , and
ending on the day of , 19 , and that said
newspaper was regularly distributed to its subscribers during all of this period
That the full amount of $ 801 . 90 has been paid in full, also at the rate of
121 it, 111,00 6.6Q = 801.90
Subscribed and sworn to before me this 8 day of Mar . , 19 8.3
Notary Public in and for the State of Washington residing at Pasco
. CITY
of
FINANCE DEPARTMENT
(5091 545 3401
Scan 726 3401
P 0 BOX 293 412 WEST (LARK PASCO, WASHINGTON 99301
March 1, 1983
Tri City Herald
P 0 Box 2608
Pasco, Washington 99302
Attn Sue Bateman
Dear Sue
Please publish Ordinance No 2436 on the following
date
March 4, 1983
Please send three (3) Affidavits of Publication
Sincerely yours,
Evelyn Wells
City Clerk
ew