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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 - 7 - 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" - 9 - 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 - 12 - 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 - 13 - 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 - 14 - 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