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HomeMy WebLinkAbout2846 OrdinanceCITY OF PASCO, WASHINGTON D.1 1-1 G ORDINANCE NO. -2-8-3-9- AN ORDINANCE adopting a system or plan of additions to and betterments and extensions of the waterworks 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 $2,305,000 par value of Water and Sewer Revenue and Refunding Bonds, 1991, for the purpose of obtaining a part of the funds with which to carry out such system or plan, pay the cost of advance refunding a portion of the outstanding Water and Sewer Revenue Bonds, 1983, and capitalizing a reserve for the bonds; providing for and authorizing the purchase of certain obligations out of a portion of the proceeds of the sale of the bonds herein authorized and for the use and application of the money derived from those investments; authorizing the execution of an agreement with Puget Sound National Bank, as refunding trustee; fixing the date, form, denomination, maturities, interest rates, terms and covenants of such bonds; providing for the sale and delivery of such bonds to Seattle-Northwest Securities Corporation 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, 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.); and WHEREAS, pursuant to Ordinance No. 1636, the City heretofore issued $900,000 par value Water and Sewer Revenue Refunding Bonds, 1974 (the "1974 Bonds"); and WHEREAS, pursuant to Ordinance No. 2436, the City heretofore issued $800,000 par value Water and Sewer Revenue Bonds, 1983 (the "1983 Bonds"), which 1983 Bonds were issued on a parity of lien with the 1974 Bonds, and by that ordinance reserved the right to call, pay and redeem on March 1, 1993, or on any interest payment date thereafter, the 1983 Bonds maturing on March 1, 1994, and 0001536 01 - 1 ee, rd (lance_ c ' 1 SO , I a, P , March 1 1995; and WHEREAS, there are presently outstanding $525,000 principal amount of 1983 Bonds maturing on March 1, 1994, and March 1, 1995, bearing interest at the rates of 9.20% and 9.40%, respectively (the "Refunded Bonds"); and WHEREAS, the City Council has determined that the outstanding Refunded Bonds may be refunded by the issuance and sale of the water and sewer revenue bonds authorized herein so that a substantial saving will be effected by the difference between the principal and interest costs over the life of the portion of the Bonds allocated to the refunding and the principal and interest costs over the life of the outstanding Refunded Bonds but for such refunding, which refunding will be effected by (a) The issuance of the Bonds, and (b) The payment of the interest on the Refunded Bonds when due up to and including March 1, 1993, and, on March 1, 1993, the call, payment and redemption of all the outstanding Refunded Bonds at par; and WHEREAS, in order to effect that refunding in the manner that will be most advantageous to the City and its ratepayers, the City Council finds it necessary and advisable that certain acquired obligations (hereinafter defined) bearing interest and maturing at the time or times necessary to accomplish the refunding as aforesaid be purchased out of a portion of the proceeds of the sale of the Bonds authorized herein; and WHEREAS, the City Council has determined that it is necessary and in the best interests of the City that certain additional 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 (the "Plan of Additions"); and WHEREAS, the City Council has determined that it is necessary to issue and sell $2, 305,000 par value of water and sewer revenue 0001536 01 - 2 - Y T-. X a 1 and refunding bonds to provide a part of the funds necessary to carry out the Plan of Additions providing for additions to and betterments and extensions of the Waterworks Utility, to advance refund the Refunded Bonds, to capitalize a reserve for the Bonds and to pay the costs of issuance and sale of the Bonds, and Seattle-Northwest Securities Corporation has offered to purchase those Bonds under the terms and conditions hereinafter set forth; NOW, THEREFORE, 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: "Acquired Obligations" means United States Treasury Certificates and Notes--State and Local Government Series or other direct, non-callable obligations of the United States government. "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 the Bonds or any Future Parity Bonds, issued by an institution which has been assigned a credit rating at the time of issuance of the Bonds or Future Parity Bonds, respectively, secured by such Alternate Security in the highest rating categories by both Moody's Investors Service, Inc., and Standard & Poor's Corporation. "Annual Debt Service" for the Bonds and any Future 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. "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 Bonds and any Future 0001536 01 - 3 - I 1 3 Parity Bonds divided by the number of those years. "Bond Fund" means the Water and Sewer Revenue and Refunding Bond Redemption Fund, 1991, of the City created and established by this ordinance in the office of the Finance Director of the City. "Bond Registrar" means the fiscal agencies of the State of Washington, located in Seattle, Washington, and New York, New York, as the same may be designated from time to time. "Bonds" means the Water and Sewer Revenue and Refunding Bonds, 1991, authorized to be issued by this ordinance. "1974 Bonds" means the outstanding Water and Sewer Revenue Refunding Bonds, 1974, dated April 1, 1974. "1983 Bonds" means the Water and Sewer Revenue Bonds, 1983, dated March 1, 1983, maturing up to and including March 1, 1993. "City" means the City of Pasco, Washington, a duly organized code city. "Coverage Requirement" in any year means an amount of Net Revenue of the Waterworks Utility, together with ULID Assessments, equal to at least 1.25 times an amount equal to the Maximum Annual Debt Service on all bonds payable from the Bond Fund. "Future Parity Bonds" means 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 22 of this ordinance, 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 for the outstanding Bonds and any Future Parity Bonds. "Government Obligations" means those government obligations defined by RCW 39.53.010(9) as it now reads or hereafter may be amended and which are otherwise lawful investments of the City at the time of such investment. 0001536 01 - 4 - "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 Internal Revenue Code of 1986, as amended. "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 Bonds and any Future Parity Bonds. "Net Revenue of the Waterworks Utility" or "Net Revenue" means the Gross Revenue less Operation and Maintenance Expense. "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 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. "Plan of Additions" means the system or plan of additions to 0001536 01 - 5 - and betterments and extensions of the Waterworks Utility specified, adopted and ordered to be carried out by Section 2 herein. "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 the Bonds and Future Parity Bonds. "Prior Lien Bonds" means the 1974 Bonds and the 1983 Bonds. "Refunded Bonds" means the 1983 Bonds maturing in 1994 and 1995, irrevocable provision for the payment and redemption of which is made herein. "Refunding Plan" means (1) the placement of sufficient proceeds of the Bonds which, with other money of the City, will acquire the Acquired Obligations to be deposited with cash in trust with the Refunding Trustee, (2) the payment of the interest on the Refunded Bonds up to and including March 1, 1993, and (3) on March 1, 1993, the call, payment and redemption of all of the Refunded Bonds at a price of par, all as provided in this ordinance and the Refunding Trust Agreement. "Refunding Trust Agreement" means that agreement between the City and the Refunding Trustee providing for carrying out the Refunding Plan. "Refunding Trustee" means Puget Sound National Bank of Tacoma, Washington. "Reserve Account" means the account of that name created in Washington the Bond Fund for the purpose of securing the payment of the principal of and interest on the Bonds and Future Parity Bonds. "Reserve Insurance" means, in lieu of cash and investments, insurance obtained by the City equal to all of the Reserve Requirement for any Bonds or Future Parity Bonds then outstanding for which such insurance is obtained. "Reserve Requirement" means: (1) For the Bonds, the amount of $230,661.10. 0001536 01 - 6 - 3 (2) For any Future Parity Bonds, an amount equal to the difference between the Reserve Requirement for the Bonds and any Future Parity Bonds then outstanding and the least of (a) 10% of the issue price of the Bonds, any Future Parity Bonds then outstanding and the Future Parity Bonds proposed to be issued, (b) Maximum Annual Debt Service on the Bonds then outstanding, any outstanding Future Parity Bonds and the Future Parity Bonds proposed to be issued and (c) 1.25 times Average Annual Debt Service on the Bonds, the outstanding Future Parity Bonds 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 shall be treated as a single issue and the last scheduled maturity for any of those issues shall be used as the denominator. "State Loan" means the Public Works Trust Fund Loan, as amended, dated May 15, 1989. "Term Bonds" means those bonds of any single issue or series designated as such in the ordinance providing for those bonds. "ULID" means utility local improvement district. "ULID Assessments" means all ULID assessments and installments thereof, plus interest and penalties thereon, in any ULID created to secure the payment of any Future Parity Bonds and pledged to be paid into the Bond Fund. "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. "Waterworks Utility" means the combined sanitary sewerage system and water system of the City, together with the storm or surface water sewers 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. 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 described in 0001536 01 - 7 - 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, and replacements and improvements to necessary or desirable to maintain or increase the effectiveness of the service provided by such facilities, other improvements to and extensions of the water system 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 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 twenty years. The estimated cost of the acquisition, construction, installation and financing of the above-described improvements is declared to be approximately $1,700,000. Such cost shall be paid from the proceeds of the bonds authorized in this ordinance and from other money of the City made available therefor. Section 3. Findings. The City Council finds that (1) all payments required to be made into the bond fund for the Prior Lien Bonds have been made into that bond fund and that no deficiency exists therein; (2) all payments required by the State Loan have been provided for or made into the loan redemption fund for such outstanding loan and that no deficiency exists in such funds; and 0001536 01 - 8 - (3) provision is hereinafter made for the deposit in the Reserve Account of the Bond Fund of the Reserve Requirement for the Bonds. In the judgment of the City Council the Gross Revenue of the Waterworks Utility at the rates to be charged for water and sanitary sewage disposal service furnished on the entire 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 State Loan and Prior Lien 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 interest on the Bonds when due 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 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 State Loan and the Prior Lien 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 such State Loan and Prior Lien 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 State Loan and the Prior Lien Bonds. Section 4. Purpose of Bonds. The Bonds are being issued for the purpose of providing a part of the funds to pay the cost of carrying out the Plan of Additions, carrying out the Refunding Plan, capitalizing the Reserve Requirement and paying the costs of issuance of the Bonds. 0001536 01 - 9 - Section 5. Description of Bonds. The Bonds shall be called Water and Sewer Revenue and Refunding Bonds, 1991, of the City (the "Bonds"); shall be in the aggregate principal amount of $2,305,000; shall be dated October 1, 1991; shall be in the denomination of $5,000 or any integral multiple thereof within a single maturity; shall be numbered separately in the manner and with any additional designation as the Bond Registrar deems necessary for purposes of identification; shall bear interest at the rates set forth below (computed on the basis of a 360-day year of twelve 30-day months), payable on March 1, 1992, and semiannually thereafter on each succeeding September 1 and March 1; and shall bear interest at the rates and mature on March 1 in years and amounts as follows: Maturity Years Principal Amounts Interest Rates 1992 $ 40,000 4.70% 1993 50,000 4.90 1994 330,000 5.10 1995 370,000 5.20 1996 410,000 5.40 1997 450,000 5.55 1998 500,000 5.65 1999 155,000 5.75 Section 6. Registration and Transfer of Bonds. The Bonds shall be issued only in registered form as to both principal and interest and recorded on books or records maintained by the Bond Registrar (the "Bond Register"). The Bond Register shall contain the name and mailing address of the owner of each Bond and the principal amount and number of each of the Bonds held by each owner. Bonds surrendered to the Bond Registrar may be exchanged for Bonds in any authorized denomination of an equal aggregate principal amount and of the same interest rate and maturity. Bonds 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 or transfer any Bond during the 0001536 01 - 10 - fifteen days preceding any principal payment or redemption date. Section 5. Payment of Bonds. Both principal of and interest on the Bonds shall be payable in lawful money of the United States of America. Interest on the Bonds shall be paid by checks or drafts mailed on the interest payment date to the registered owners at the addresses appearing on the Bond Register on the fifteenth day of the month preceding the interest payment date. Principal of the Bonds shall be payable upon presentation and surrender of the Bonds by the registered owners at either of the principal offices of the Bond Registrar at the option of the owners. Section 7. Optional Redemption and Open Market Purchase of Bonds. Bonds maturing in the years 1992 through 1994, inclusive, shall be issued without the right or option of the City to redeem those Bonds prior to their stated maturity dates. The City reserves the right and option to redeem Bonds maturing on or after March 1, 1995, prior to their stated maturity dates on or after March 1, 1994, as a whole at any time, or in part on any interest payment date within one or more maturities selected by the City (and by lot within a maturity in such manner as the Bond Registrar shall determine), at par plus accrued interest to the date fixed for redemption. Portions of the principal amount of any Bond, in installments of $5,000 or any integral multiple thereof, may be redeemed. If less than all of the principal amount of any Bond is redeemed, upon surrender of that Bond at either of the principal offices of the Bond Registrar, there shall be issued to the registered owner, without charge therefor, a new Bond (or Bonds, at the option of the registered owner) of the same interest rate and maturity in any of the denominations authorized by this ordinance in the aggregate principal amount remaining unredeemed. The City further reserves the right and option to purchase any 0001536 01 or all of the Bonds in the open market at any time at a price not in excess of par plus accrued interest to the date of purchase. All Bonds purchased or redeemed under this section shall be cancelled. Section 8. Notice of Redemption. The City shall cause notice of any intended redemption of Bonds to be given not less than 30 nor more than 60 days prior to the date fixed for redemption by first-class mail, postage prepaid, to the registered owner of any Bond to be redeemed at the address appearing on the Bond Register at the time the Bond Registrar prepares the notice, and the requirements of this sentence shall be deemed to have been fulfilled when notice has been mailed as so provided, whether or not it is actually received by the owner of any Bond. Interest on Bonds called for redemption shall cease to accrue on the date fixed for redemption unless the Bond or Bonds called are not redeemed when presented pursuant to the call. In addition, the redemption notice shall be mailed within the same period, postage prepaid, to Moody's Investors Service, Inc., and Standard & Poor's Corporation at their offices in New York, New York, or their successors, to Seattle-Northwest Securities Corporation, at its principal office in Seattle, Washington, or its successor, and to such other persons and with such additional information as the City Finance Director shall determine, but these additional mailings shall not be a condition precedent to the redemption of Bonds. Section 9. Failure to Redeem Bonds. If any Bond is not redeemed when properly presented at its maturity or call date, 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 call date 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 redemption fund hereinafter created and the Bond has been 0001536 01 - 12 - called for payment by giving notice of that call to the registered owner of each of those unpaid Bonds. Section 10. Form and Execution of Bonds. The Bonds shall be printed or lithographed on good bond paper in a form consistent with the provisions of this ordinance and state law, shall be signed by the Mayor and 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. Only Bonds bearing a Certificate of Authentication in 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, Water and Sewer Revenue and Refunding Bonds, 1991, described in the Bond Ordinance. WASHINGTON STATE FISCAL AGENCY Bond Registrar By Authorized Officer The authorized signing of a Certificate of Authentication shall be conclusive evidence that the Bonds so authenticated have been duly executed, authenticated and delivered and are entitled to the benefits of this ordinance. If any officer whose facsimile signature appears on the Bonds ceases to be an officer of the City authorized to sign bonds before the Bonds bearing his or her facsimile signature are authenticated or delivered by the Bond Registrar or issued by the City, those Bonds nevertheless may be authenticated, delivered and issued 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 0001536 01 - 13 - of the Bond, is an officer of the City authorized to sign bonds, although he or she did not hold the required office on the date of issuance of the Bonds. Section 11. Bond Registrar. The Bond Registrar shall keep, or cause to be kept, at its principal corporate trust office, 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 City Ordinance No. 2838 establishing a system of registration for the City's bonds and obligations. The Bond Registrar shall be responsible for its representations contained in the Bond Registrar's Certificate of Authentication on the Bonds. The Bond Registrar may become the owner of Bonds 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 Bond owners. Section 12. 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 at any time during the term of the Bonds which will cause interest on the Bonds to be included in gross income for federal income tax purposes. The City certifies that it has not been notified of any listing or proposed 0001536 01 - 14 - listing by the Internal Revenue Service to the effect that it is a bond issuer whose arbitrage certifications may not be relied upon. Section 13. Small Governmental Issuer Arbitrage Rebate Exemption and Designation of Bonds as "Qualified Tax-Exempt Obligations." The City finds and declares that (a) it is a duly organized and existing governmental unit of the State of Washington and has general taxing power; (b) no Bond which is part of this issue of Bonds is a "private activity bond" within the meaning of Section 141 of the United States Internal Revenue Code of 1986, as amended (the "Code"); (c) at least 95% of the net proceeds of the Bonds will be used for local governmental activities of the City (or of a governmental unit the jurisdiction of which is entirely within the jurisdiction of the City); (d) the aggregate face amount of all tax-exempt obligations (other than private activity bonds or other obligations not required to be included in such calculation) issued by the City and all entities subordinate to the City (including any entity which the City controls, which derives its authority to issue tax-exempt obligations from the City or which issues tax-exempt obligations on behalf of the City) during the calendar year in which the Bonds are issued is not reasonably expected to exceed $5,000,000; and (e) the amount of tax-exempt obligations, including the Bonds, designated by the City as "qualified tax-exempt obligations" for the purposes of Section 265(b)(3) of the Code during the calendar year in which the Bonds are issued does not exceed $10,000,000. The City therefore certifies that the Bonds are eligible for the arbitrage rebate exemption under Section 148(f)(4)(D) of the Code and designates the Bonds as "qualified tax-exempt obligations" for the purposes of Section 265(b)(3) of the Code. Section 14. Bonds Negotiable. The Bonds shall be negotiable instruments to the extent provided by RCW 62A.8-102 and 62A.8-105. 0001536 01 - 15 - Section 15. Creation of Bond Fund; Payments into Bond Fund. There is created and established in the office of the Finance Director a special fund to be known and designated as the Water and Sewer Revenue and Refunding Bond Redemption Fund, 1991 (herein defined as the "Bond Fund"). The Bond Fund is divided into two accounts, namely, the Principal and Interest Account and the Reserve Account. So long as Bonds and Future Parity Bonds are outstanding against the Bond Fund, the Finance Director shall set aside and pay into the Bond Fund all ULID Assessment collections, and out of the Net Revenue of the Waterworks Utility a fixed amount without regard to any fixed proportion sufficient, 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, on or before each interest or principal and interest payment date, as follows: Into the Principal and Interest Account, 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. There shall be paid into the Reserve Account $230,661.10 from the proceeds of the issuance and sale of the Bonds, the Reserve Requirement of the Bonds. Notwithstanding the first sentence of this paragraph, the Reserve Requirement may be decreased for the Bonds or any issue of Future Parity Bonds when and to the extent the City has provided for an Alternate Security or Reserve Insurance. 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. 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 0001536 01 - 16 - 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, 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. In the event 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 the withdrawal of cash therefrom for that purpose. 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. 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 0001536 01 - 17 - 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 16. 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 in 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 Future Parity Bonds and, with respect to that Net Revenue, subordinate to the lien and charge upon such revenue for the Prior Lien Bonds. Section 17. Refunding of the Refunded Bonds. (a) Acquisition and Substitution of Acquired Obligations. $585,941.45 of the proceeds of the sale of the Bonds shall be deposited immediately upon the receipt thereof with the Refunding Trustee to discharge the obligation of the City to carry out the Refunding Plan 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 Acquired Obligations bearing such interest rates and maturing as to principal and interest in such amounts and at such times so as to provide for the payment of the amounts required to be paid by the Refunding Plan. The Acquired Obligations are listed and more particularly described in Schedule A attached to the Refunding Trust Agreement, but are subject to substitution as set forth below. 0001536 01 - 18 - Prior to the purchase of any such Acquired Obligations, the City reserves the right to substitute other direct, non-callable obligations of the United States of America ("Substitute Obligations") for any of the Acquired Obligations and to use any savings created thereby for any lawful City purpose if, (a) in the opinion of Foster Pepper & Shefelman, the City's bond counsel, the interest on the Bonds will remain excluded from gross income for federal income tax purposes under Sections 103, 148 and 149(d) of the Code, and (b) such substitution shall not impair the timely payment of the amounts required to be paid by the Refunding Plan as so verified by an independent nationally recognized firm of certified public accountants. After the purchase of the Acquired Obligations by the Refunding Trustee, the City reserves the right to substitute therefor cash or Government Obligations subject to the conditions that such money or securities held by the Refunding Trustee shall be sufficient to carry out the Refunding Plan, that such substitution will not cause the Bonds to be arbitrage bonds within the meaning of Section 148 of the Code and regulations thereunder in effect on the date of such substitution and applicable to obligations issued on the issue date of the Bonds, and that the City obtain, at its expense: (1) verification by an independent nationally recognized firm of certified public accountants acceptable to the Refunding Trustee confirming that the payments of principal of and interest on the substitute Acquired Obligations, if paid when due, and any other money held by the Refunding Trustee will be sufficient to carry out the Refunding Plan; and (2) an opinion from Foster Pepper & Shefelman, bond counsel to the City, its successor, or other nationally recognized bond counsel to the City, to the effect that the disposition and substitution or purchase of such securities, under the statutes, rules and regulations then in force and 0001536 01 - 19 - applicable to the Bonds, will not cause the interest on the Bonds or the Refunded Bonds to be included in gross income for federal income tax purposes and that such disposition and substitution or purchase is in compliance with the statutes and regulations applicable to the Bonds. 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 Waterworks Utility purpose. (b) 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 by the Refunding Plan from the Acquired Obligations (or substitute obligations) and money deposited with the Refunding Trustee pursuant to this ordinance. All Acquired Obligations (or substitute obligations) and the money deposited with the Refunding Trustee and any income therefrom shall be held irrevocably, invested and applied in accordance with the provisions of Ordinance No. 2436, this ordinance, Chapter 39.53 RCW and other applicable statutes of the State of Washington, and the Refunding Trust Agreement. All necessary and proper fees, compensation and expenses of the Refunding Trustee for the Bonds and all other costs incidental to establishing the escrow to accomplish the refunding of the outstanding Refunded Bonds and costs related to the issuance and delivery of the Bonds, including bond printing, rating service fees, insurance premiums, verification fees, bond counsel's fees and other related expenses, shall be paid out of the proceeds of the Bonds. (c) Authorization for Refunding Trust Agreement. In order to carry out the Refunding Plan provided for by this ordinance, the Mayor or City Manager is authorized and directed to execute and deliver to the Refunding Trustee a Refunding Trust Agreement 0001536 01 - 20 - substantially in the form on file with the City Clerk and by this reference made a part hereof, setting forth the duties, obligations and responsibilities of the Refunding Trustee in connection with the payment, redemption and retirement of the outstanding 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. Prior to executing the Refunding Trust Agreement, the Mayor or City Manager is authorized to make such changes therein which do not change the substance and purpose thereof or which assure that the escrow provided therein and the Bonds are in compliance with the requirements of federal law governing the exclusion of interest on the Bonds from gross income for federal income tax purposes. Section 18. Call for Redemption of the Outstanding Refunded Bonds. The City calls for redemption on March 1, 1993, all of the outstanding Refunded Bonds at par plus accrued interest. Such call for redemption shall be irrevocable after the delivery of the Bonds to the initial purchaser thereof. The date on which the Refunded Bonds are called for redemption is the next date on which those bonds may be called at a premium of 3% or less. The proper City officials are authorized and directed to cause the fiscal agencies to give such notices as required, at the times and in the manner required by Ordinance No. 2436 in order to effect the redemption prior to their maturity of the Refunded Bonds. Section 19. 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 for the Prior Lien Bonds to pay and secure the payment of debt service on those bonds; (3) 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 Bonds and Future Parity Bonds; 0001536 01 - 21 - (4) To make all payments required to be made into the Reserve Account and to make all payments 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. (5) To make all payments required to be made into the State 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 (6) To make necessary additions, betterments, improvements or repairs to the Waterworks Utility, and to retire by redemption or purchase any outstanding Bonds and Parity Bonds, or for any other lawful purpose. Section 20. 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 Bonds and Future Parity Bonds or to pay the principal of and interest on all the outstanding Bonds and Future 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 Bonds and Future 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 Bonds and Future 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 Bonds and Future Parity Bonds as they come due and for 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 Expense and meet the debt service 0001536 01 - 22 - requirements of the outstanding Prior Lien Bonds and State Loans 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 Bondowner 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 Expense, 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 Bonds and any Future 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. 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 21. Provisions for Future Parity Bonds. The City reserves the right to issue Future Parity Bonds if the following conditions are met and complied with at the time of the issuance of those Future Parity Bonds: (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 0001536 01 - 23 - 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 of (i) an amount equal to the Reserve Requirement for those Future Parity Bonds from the Future Parity Bond proceeds, or, (11) 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 third 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 six approximately equal semiannual 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 (1) the insurance policy or Alternate Security is non-cancellable and (11) 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 Corporation. (e) 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. (f) 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. 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 0001536 01 - 24 - 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 required connection 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. Nothing contained herein shall prevent the City from issuing Future Parity Bonds to refund maturing Bonds or Future 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 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 the Bonds and any Future Parity Bonds or from pledging 0001536 01 - 25 - the payment of utility local improvement district assessments into a bond redemption fund created for the payment of the principal of and interest on those subordinate lien bonds as long as such utility local improvement district assessments are levied for improvements constructed from the proceeds of those subordinate lien bonds. Section 22. Revocation of Right to Issue Prior Lien Bonds. The right of the City to issue bonds on a parity of lien with the 1974 Bonds and the 1983 Bonds in accordance with the provisions of Section 13 of Ordinance No. 768, as amended by Ordinance No. 774, Section 14 of Ordinance No. 1636, and Section 11 of Ordinance No. 2436 is revoked. Section 23. Deposit of Bond Proceeds. There is created in the office of the City Finance Director a special fund of the City known as the Water and Sewer Construction Fund, 1991 (the "Construction Fund"). The proceeds of the issuance and sale of the Bonds, exclusive of the accrued interest thereon, which shall be paid into the Bond Fund, shall be deposited as follows: (1) $230,661.10 into the Reserve Account as capitalized reserve; (2) a sufficient amount of the proceeds to carry out the Refunding Plan and to pay the costs of issuance and sale of the Bonds shall be deposited with the Refunding Trustee as provided in Section 17; and (3) the balance shall be deposited in the Construction Fund and used to pay part of the costs of carrying out the Plan of Additions and to pay any remaining costs of issuance and sale of the Bonds not paid by the Refunding Trustee. Until needed to pay the costs of the Plan of , Additions, money on deposit in the Construction Fund may be invested temporarily in any legal investment, and the investment earnings retained in the Construction Fund and used for the purposes of that fund. Section 24. Advance Refunding or Defeasance of Bonds. The City may issue advance refunding bonds pursuant to the laws of the 0001536 01 - 26 - State of Washington and use money available from other lawful source to pay the principal of and interest on the Bonds, or such portion thereof included in a refunding or defeasance plan, as the same become due and payable and to redeem and retire, release, refund or defease any or all such then-outstanding Bonds (hereinafter collectively called the "defeased Bonds") and to pay the costs of such refunding or defeasance. In the event that money and/or Government Obligations (as defined by RCW 39.53.010(9) as it now reads or hereafter may be amended and which are otherwise lawful investments of the City at the time of such investment) sufficient in amount, together with known earned income from the investments thereof, to redeem and retire, release, refund or defease the def eased Bonds in accordance with their terms, are set aside irrevocably in a special fund for and pledged irrevocably to such redemption, retirement or defeasance (hereinafter called the "trust account"), 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 such defeased Bonds, other than the right to receive the funds so set aside and pledged, thereafter shall cease and become void. Such owners thereafter shall have the right to receive payment of the principal of and interest on the defeased Bonds from the trust account. After the establishing and full funding of such a trust account, the City then may apply any money in any other fund or account established for the payment or redemption of the defeased Bonds to any lawful purposes as it shall determine, subject only to the rights of the owners of any other Bonds or bonds then outstanding. In the event that the refunding plan provides that the defeased Bonds or the refunding bonds to be issued be secured by money and/or 0001536 01 - 27 - 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. Section 25. Approval of Bond Purchase Contract. Seattle-Northwest Securities Corporation of Seattle, Washington (the "Purchaser"), has presented a bond purchase contract (the "Bond Purchase Contract") to the City by which the Purchaser has offered to purchase the Bonds under the terms and conditions provided in the Bond Purchase Contract, which written Bond Purchase Contract is on file with the City Clerk and is incorporated herein by this reference. The City Council finds that entering into the Bond Purchase Contract is in the City's best interest and, therefore, accepts the offer contained therein and authorizes the execution of the Bond Purchase Contract by City officials. The Bonds will be printed at City expense and will be delivered to the Purchaser in accordance with the terms of the Bond Purchase Contract with the approving legal opinion of Foster Pepper & Shefelman, municipal bond counsel of Seattle, Washington, relative to the issuance of the Bonds, printed on each Bond. Bond counsel has not been retained to and shall not be required to review or express any opinion concerning the completeness or accuracy of any official statement, offering circular or other sales material issued or used in connection with the Bonds, and bond counsel's opinion shall so state. 0001536 01 - 28 - 4 , I Ap 4 The City Council has been provided with copies of a preliminary official statement dated October 9, 1991 (the "Preliminary Official Statement"), prepare in connection with the sale of the Bonds. For the sole purpose of the Purchaser's compliance with Securities and Exchange Commission Rule 15c2-12(b)(1), the City "deems final" that Preliminary Official Statement as of its date except for the omission of information as to offering prices, interest rates, selling compensation, aggregate principal amount, principal amount per maturity, maturity dates, options of redemption, delivery date, ratings and other terms of the Bonds dependent on such matters. The proper City officials are authorized and directed to do everything necessary for the prompt authentication and delivery of the Bonds to the Purchaser, including the execution of the Official Statement on behalf of the City, and for the proper application and use of the proceeds of the sale thereof. Section 27. Temporary Bond. Pending the printing, execution and delivery to the Purchaser of the definitive Bonds, the City may cause to be executed and delivered to the Purchaser a single temporary Bond in the total principal amount of the Bonds. Such temporary Bond shall bear the same date of issuance, interest rates, principal payment dates and terms and covenants as the definitive Bonds, shall be issued as a fully registered Bond in the name of the Purchaser, and shall be in such form as acceptable to the Purchaser. Such temporary Bond shall be exchanged for the definitive Bonds as soon as the same are printed, executed and available for delivery. Section 27. Ratification and Confirmation. All actions taken by or on behalf of the City consistent with the provisions of this ordinance are ratified and confirmed. Section 28. Effective Date. This ordinance shall take effect and be in force from and after its passage and 5 days following its publication as provided by law. 0001536 01 - 29 - this 21st day of October, 1991. ATTEST: Deputy City Clerk e IN .1 PASSED by the City Council and APPROVED by the Mayor of the City of Pasco, Washington at a regular open public meeting thereof APPROVED AS TO FORM: 0001536 01 - 30 - • PASCO WASHINGTON 99302 2608 ZV,V. P0 BOX 2608 s 110 PHONE (509) 582 1500 LL A VE MING INVOICE SOLD TO e f' 41 6-ae P &IA' .7 9 5 lgwe l 07/ 9730-/ t DATE /C79/ LEGAL N6 ocz500. ACCOUNT NO _,SZ=1_ DESCRIPTION _Orir liti•fle-e-- L b.car- 79 TIMES 00/ LINES P81 75 .; T TAL $ /5 -7:7'7, 21 / NOTICE This m an invoice for legal advertising space Please pay from this invoice as no statement will be rendered Please detach at perforation and return with payment MIT F LC T! COUNTY OF BENTON S S STATE OF WASHINGTON , being duly sworn, deposes and gays, I am the Legal Clerk 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 countinually as a daily newspa- per in Benton Coy9ty, Washington That the attached is a true copy of a Ord, iao et/cze_. c2r3? as it was printed in the regular and entire issue of the Tr-City Herald itself and not in a supplement thereof, (50 time(s), commencin_9 on _ZO , and ending on /0 0 *7 ?/ , and that said newspaper was regulary distributed to its subscribers during all of this period SUBSCRI AND SWORN BEFORE M--T-111S c—D DAY OF , 944 it.ade Notary pubic in and for tbeoState of Wash- ington, residing at COMMISSION EXPIRES 7-45---f-2 CIA LEGALS bids and provide—th-cf council with a summary thereof Except as herei- nafter provided the con tract shall be awarded to the lowest responsible bid- der The council may by resolution reject any or all bids If the council in its Judgment determines that the public work or im- provement can be done by the city at less cost than the lowest bid submitted or if no bids are submitted it may authorize the work to be done by day labor The ballot title for the prop- osition to amend the bid limits of the Richland City Charter at the General Election to be held in the City of Richland on Novem- ber 5 1991 shall read as follows PROPOSITION 3 Shall the Richland City Charter be amended to pro vide that sealed bid limits be established by an ordi- nance passed by vote of the Richland City Council and removing the require- ment of a unanimous vote of all councilmembers to establish monetary limits as established by resolution # 73-91 of the Richland City Council? 0 Charter Amendment yes 0 Charter Amendment no Section 1 04 Each Charter amendment shall take ef- fect upon its certification by the board of canvassers of having been approved by a majority of the electors vot frig on the proposition Section 1 05 This resolu tion shall take effect mime diately PASSED at a regular meet ing of the City Council this 16th day of September 1991 s Craig Buchanan Mayor FORM APPROVED S Thomas 0 Lampson City Attorney S Leslie A Smith City Clerk #2905 1016 13 20 27&1 1 /3/91 REQUEST FOR QUOTATIONS Sealed quotations subject to the accompanying speci fications to supply the East Columbia Basin Irrigation District with one (1) new or used diesel powered Long Stick Excavator will be re ceived by the Secretary of the East Columbia Basin Ir rigation District P 0 Box E Othello Washington until 10 00 a m on Wednesday November 13 19h9e 1 T East Columbia Basin Irrigation District reserves the right to reject any or all quotations and to waive any informality in the quoting or to exercise any other right of action provided by statute The East Columbia Basin Irrigation District will furn- ish Federal Tax Exemption Certificates to the success ful quote if applicable #2997 - 10/27&11/3 10/91 (6 g5 CHRISTMAS Christmas Trees 6-8 Douglas Fir field run $5 ea Terms 503 935-3303 Nobles avail Our Lady of Lourdes Aux- iliary Bazaar tables for rent $10 Nov 9th 9-4 at St Patrick s Auditorium 545 5188 US LOST & FOUND Found Boat in Yakima River 1 786 2508 Found Rflale Sheltie on George Wash Way call 376-4966 Fougi d PU'rektersian, Liv- ingston Rd VI Pasco call and identify 547 4312 Found W Richland (City Hall & Royal Crest MH Park) approx 2 yr old Cocker Spaniel female SUNDAY, OCTOBER 27, 1991 TRI-CITY HERALD E5 t irj ic LEGALS placement of a Coun- cilmember due to disability Section 2 03 Removal from or Forfeiture of Of- fice-Vacancies Any coun oilman may be removed from office by recall as pro- vided by law A councilman shall be deemed to have forfeited his office thereby creating a vacancy upon any of the following grounds failure to qualify or enter upon his duties within the time limited by law ceasing to be a resi- dent of the city conviction of an infamous crime or any offense involving a violation of this Charter or his official oaths failure or refusal to take his oath of office ceas- ing to have the qualifica tions prescribed in this Charter general laws or city ordinances or a failure to attend three consecutive regular meetings of the council without being ex- cused by the council In ad- dition to the foregoing the office of a councilman shall become vacant upon his death removal from office or resignation if a superior court determines that a member of council is un- able or incapable of rea- sonably fulfilling his/her duties because of illness or any other reason ex- cused or unexcused for at least six continuous months thereafter or is unlikely to so perform, the position filled by such councilmember shall be considered vacant The ballot title for the prop- osition to have declared va- cant the position of a disabled councilmember by amending the Richland City Charter at the General Election to be held in the City of Richland on Novem ber 5 1991 shall read as follows PROPOSITION 1 Shall the Richland City Charter be amended to pro- vide for the removal of a councilmember adjudged by a superior court to be unable or incapable of fulfil ling council duties due to ill ness or any other reason for a period of six contin uous months as provided by resolution #73-91 of the City Council? 0 Charter Amendment yes 0 Charter Amendment no Section 1 02 There shall be submitted to the electors of the City the following amendment to Section 2 06 of the Charter of the City of Richland Washington Section 2 06 Mayor and ikilayor Pro Tempore Bien- nially in the meeting at which the newly elected councilmen take office the council shall choose from among its members a chair man who shall have the title of mayor and shall also choose from among its members an assistant chairman who shall have the title of mayor pro tem pore The mayor pro tern pore shall act as mayor during the absence or disa bility of the Mayor and shall succeed to the office of mayor in case of a vacancy The mayor and the mayor pro tempore shall serve until the next regularly elected councilmen take of fice unless removed as provided in this section The mayor or the mayor pro tempore when serving as mayor shall preside at meetings of the council and shall be recognized as head of the city government for all ceremonial purposes and by the governor for pur poses of military law He shall have the rights pnv- lieges and immunities of a member of the council but span have no regular ad ministrative duties as mayor In addition to his cornpensatiw as a coun oilman ttjp mayor shall re • elyels&cln rodditional compensation as may be detormined_b_v_ordinance..._ VOR P PUBLIC .) NOTICES AGENDA BENTON COUNTY COMMISSIONERS Regular IVIeetIng 8 00 a m IVIon Oct 28 1991 Benton County Courthouse Prosser, WA 8 00am-Commissioners Discussion/Workshop 10 00am-Call to Order Approval of Minutes CONSENT AGENDA 10 15am-Bid Opening - Medical Services for In- mates 10 30am-Terry Marden - Planning commission rec ommendatton re Zoning Ordinance Amendment 11 00am-Penny Newton re Revenue Projections 11 15am-Barbara Wagner re New Hire Placement on Salary Schedule 11 45am-Unscheduled Visitors 1 30pm-Public Hearing re Initiative Measure 559 3 00pm-Lease with Pace- Columbia Center West Group for Human Services Office Single Business & Profes- sional People Call 783 3897 qkfi SINGLES CONNECTION Divorced or Widowed? Single again? Meet new friends For people all ages (509) 582-8526 Parents Without Partners Lady, would you like to meet a very handsome true gentlemen prof em ployed/financially secure SWM 32 w/a heart of gold? If so send descr /photo/phone to 2527 W Kenn Ave #164 Kennewick WA 99336 You won t be disappointed Lonely healthy, 72 yr old man loves dancing tray eling companionship owns home 5 7 blonde 180 lbs dont smoke no drugs occasional drink no drunk some one free to travel if compatible fu- ture marriage P 0 Box 149 Pasco WA 99301 SWF seeks relationship w/B1 SM or SF for cuddle and caring 1 on 1 relationship (no drugs or alcohol) write P 0 Box 134 Richland WA 99352 SWM engineer age 63, gentle caring secure seeks trim non smoking lady in her 50 s to develop a lifetime relationship POB 3087 Richland 99352 SWIA9 45, professional fI- nancialy secure would like to meet SF working as an exotic dancer for fun & possible relation ship Write 5215 W Clearwater Suite 107 B13 Kenn WA 99336 ighi) SPECIAL lY) NOTICES EV S HAIR CHALET We do face painting for Hal loween For appt 586 2803 First Aide/CPR Class, Nov 9th & 10th Signup now 582 5609 CO TRAVEL & TRANSPORTATION FLORIDA/BAHAMAS Over bought corporate trips $549/couple air fare cruise hotels included 404-381-0222 CARPOOLERS Interested in forming a van pool group? I have 15-pass van ready to go If inter- ested call 582 9392 ask for Mike 2 round trip tickets to Charolette SC leaving Pasco Nov 13 return Nov 23 $500 503 567 6457 days 503-567 9352 eves ask for Penny or Jerry 15-PASSENGER VAN CITY OF PA-SCO WASHINGTON ORDINANCE NO 2839 AN ORDINANCE adopting a system or plan of additions to and better monis and extensions of the waterworks 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 $2 305 000 par value of Water and Sewer Revenue and Refunding Bonds 1991 for the purpose of obtaining a part of the funds with which to carry out such system or plan pay the cost of advance re- funding a portion of the outstanding Water and Sewer Revenue Bonds 1983 and capitalizing a reserve for the bohds providing for and authorizing the purchase of certain obligations out of a portion of the proceeds of the sale of the bonds herein authorized and for the use and application of the money derived from those investments autho- rizing the execution of an agreement with Puget Sound National Bank as refunding trustee fixing the date form denomination maturities interest rates terms and covenants of such bonds providing for the sale and delivery of such bonds to Seattle-Northwest Securities Cor poration 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 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 at seq ) and WHEREAS pursuant to Ordinance No 1636 the City heretofore is- sued $900 000 par value Water and Sewer Revenue Refunding Bonds 1974 (the "1974 Bonds") and WHEREAS pursuant to Ordinance No 2436 the City heretofore is sued $800 000 par value Water and Sewer Revenue Bonds 1983 (the "1983 Bonds") which 1983 Bonds were issued on a parity of lien with the 1974 Bonds and by that ordinance reserved the right to call pay and redeem on March 1 1993 or on any interest payment date there- after the 1983 Bonds maturing on March I 1994 and March 1 1995 and WHEREAS there are presently outstanding $525 000 principal amount of 1983 Bonds maturing on March 1 1994 and March 1 1995 bearing interest at the rates of 9 20% and 9 40% respectively (the "Refunded BondS") and WHEREAS the City Council has determined that the outstanding Re- funded Bonds may be refunded by the issuance and sale of the water and sewer revenue bonds authorized herein so that a substantial say ing will be effected by the difference between the principal and interest costs over the life of the portion of the Bonds allocated to the refunding and the principal and interest costs over the life of the outstanding Re- funded Bonds but for such refunding which refunding will be effected by (a) The issuance of the Bonds and (b) The payment of the interest on the Refunded Bonds when due up to and including March 1 1993 and on March I 1993 the call payment and redemption of all the outstanding Refunded Bonds at par and WHEREAS in order to effect that refunding in the manner that will be most advantageous to the City and its ratepayers the City Council finds it necessary and advisable that certain acquired obligations (hereinafter defined) bearing interest and maturing at the time or times necessary to accomplish the refunding as aforesaid be purchased out of a portion of the proceeds of the sale of the Bonds authorized herein and WHEREAS the City Council has determined that it is necessary and in the best interests of the City that certain additional improvements be made and there be adopted a system or plan of additions to and better ments and extensions of the Waterworks Utility of the City (the "Plan of Additions") and WHEREAS the City Council has determined that it is necessary to issue and sell $2 305 000 par value of water and sewer revenue and refunding bonds to provide a part of the funds necessary to carry out the Plan of Additions providing for additions to and betterments and extensions of the Waterworks Utility to advance refund the Refunded Bonds to capitalize a reserve for the Bonds and to pay the costs of is suance and sale of the Bonds and Seattle-Northwest Securities Cor poration has offered to purchase those Bonds under the terms and conditions hereinafter set forth NOW THEREFORE 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 "Acquired Obligations" means United States Treasury Certificates and Notes-State and Local Government Series or other direct non callable obligations of the United States government "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 princi pal of and interest on the Bonds or any Future Parity Bonds issued by an institution which has been assigned a credit rating at the time of is suance of the Bonds or Future Panty Bonds, respectively secured by such Alternate Security in the highest rating categories by both Moo- dy s Investors Service Inc and Standard & Poor 's Corporation "Annual Debt Service for the Bonds and any Future 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 pro- ceeds of any such bonds in that year "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 Bonds and any Future Parity Bonds divided by the number of those years 'Bond Fund' means the Water and Sewer Revenue and Refunding Bond Redemption Fund 1991 of the City created and established by this ordinance in the office of the Finance Director of the City "Bond Registrar" means the fiscal agencies of the State of Washing ton located in Seattle Washington and New York New York as the same may be designated from time to time "Bonds' means the Water and Sewer Revenue and Refunding Bonds 1991 authorized to be issued by this ordinance "1974 Bonds" means the outstanding Water and Sewer Revenue Re- funding Bonds 1974 dated April I 1974 '1983 Bonds means the Water and Sewer Revenue Bonds 1983 dated March 1 1983 maturing up to and including March 1 1993 "City" means the City of Pasco Washington a duly organized code city , Coverage Requirement" in any year means an amount of Net Reve- nue of the Waterworks Utility together with ULID Assessments equal_ C()A LEGALS LEGALS , — equipment and appurtenances and replacements and improvements to necessary or desirable to maintain or increase the effectiveness of the service provided by such facilities other improvements to and ex tensions of the water system 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 speak cations therefor prepared by the staff and 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 Util ity of the City is declared to be at least twenty years The estimated cost of the acquisition construction installation and financing of the above-described improvements is declared to be approximately $1 700 000 Such cost shall be paid from the proceeds of the bonds authorized in this ordinance and from other money of the City made available therefor Section 3 Findings The City Council finds that (1) all payments re- quired to be made into the bond fund for the Prior Lien Bonds have been made into that bond fund and that no deficiency exists therein (2) all payments required by the State Loan have been provided for or made into the loan redemption fund for such outstanding loan and that no deficiency exists in such funds and (3) provision is hereinafter made for the deposit in the Reserve Account of the Bond Fund of the Reserve Requirement for the Bonds In the judgment of the City Coun cil the Gross Revenue of the Waterworks Utility at the rates to be charged for water and sanitary sewage disposal service furnished on the entire 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 State Loan and Prior Lien 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 in terest on the Bonds when due 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 that fund it has exer cised 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 State Loan and the Prior Lien 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 Watervorks 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 such State Loan and Prior Lien 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 State Loan and the Prior Lien Bonds Section 4 Purpose of Bonds The Bonds are being issued for the purpose of providing a part of the funds to pay the cost of carrying out the Plan of Additions carrying out the Refunding Plan capitalizing the Reserve Requirement and paying the costs of issuance of the Bonds Section 5 Description of Bonds The Bonds shall be called Water and Sewer Revenue and Refunding Bonds 1991 of the City (the ' Bonds ') shall be in the aggregate principal amount of $2 305 000 shall be dated October 1 1991 shall be in the denomination of $5 000 or any integral multiple thereof within a single maturity shall be num bared separately in the manner and with any additional designation as the Bond Registrar deems necessary for purposes of identification shall bear interest at the rates set forth below (computed on the basis of a 360-day year of twelve 30-day months) payable on March 1 1992 and semiannually thereafter on each succeeding September 1 and March 1 and shall bear interest at the rates and mature on March I in years and amounts as follows Maturity Principal 4 70% Interest Y1e9a9 r2s A$ m40o u0n0t0s Rates 1993 50 000 490 1994 330 000 510 1996 4100 000000 5 20 1995 37 450 000 5 40 555 11 9999 87 500 000 565 1999 155 000 575 Section 6 Registration and Transfer of Bonds The Bonds shall be issued only in registered form as to both principal and Interest and re- corded on books or records maintained by the Bond Registrar (the "Bond Register") The Bond Register shall contain the name and mail mg address of the owner of each Bond and the principal amount and number of each of the Bonds held by each owner Bonds surrendered to the Bond Registrar may be exchanged for Bonds in any authorized denomination of an equal aggregate principal amount and of the same interest rate and maturity Bonds may be transferred only if endorsed in the manner provided thereon and sur rendered 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 or transfer any Bond during the fifteen days preceding any principal payment or redemption date Section 5 Payment of Bonds Both principal of and interest on the Bonds shall be payable in lawful money of the United States of Amer Ica Interest on the Bonds shall be paid by checks or drafts mailed on the interest payment date to the registered owners at the addresses appearing on the Bond Register on the fifteenth day of the month pre- ceding the interest payment date Principal of the Bonds shall be pays ble upon presentation and surrender of the Bonds by the registered owners at either of the principal offices of the Bond Registrar at the op- tion of the owners Section 7 Optional Redemption and Open Market Purchase of Bonds Bonds maturing in the years 1992 through 1994 inclusive shall be issued without the right or option of the City to redeem those Bonds prior to their stated maturity dates The City reserves the right and option to redeem Bonds maturing on or after March 1 1995 prior to their stated maturity dates on or after March 1 1994 as a whole at any time or in part on any interest payment date within one or more maturities selected by the City (and by lot within a maturity in such manner as the Bond Registrar shall determine) at par plus accrued in terest to the date fixed for redemption Portions of the principal amount of any Bond in installments of $5 000 or any integral multiple thereof may be redeemed If less than all of the principal amount of any Bond is redeemed upon surrender of that Bond at either of the principal offices of the Bond Remstrar thera.shak LEGALS I4.t LEGALS endar year in which the Bonds are issued does not exceed $10 000 000 The City therefore certifies that the Bonds are eligible for the arbitrage rebate exemption under Section 148(f) (4)(D) of the Code and designates the Bonds as "qualified tax-exempt obligations" for the purposes of Section 265(b) (3) of the Code Section 14 Bonds Negotiable The Bonds shall be negotiable instru ments to the extent provided by RCW 62A 8 102 and 62A 8-105 Section 15 Creation of Bond Fund, Payments into Bond Fund There is created and established in the office of the Finance Director a special fund to be known and designated as the Water and Sewer Rev enue and Refunding Bond Redemption Fund 1991 (herein defined as the "Bond Fund") The Bond Fund is divided into two accounts namely the Principal and Interest Account and the Reserve Account So long as Bonds and Future Parity Bonds are outstanding against the Bond Fund the Finance Director shall set aside and pay into the Bond Fund all ULID Assessment collections and out of the Net Revenue of the Watervorks Utility a fixed amount without regard to any fixed pro- portion sufficient 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 on or before each interest or principal and interest payment date as follows Into the Principal and Interest Account 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 There shall be paid into the Reserve Account $230 661 10 from the proceeds of the issuance and sale of the Bonds the Reserve Require- ment of the Bonds Notwithstanding the first sentence of this par agraph the Reserve Requirement may be decreased for the Bonds or any issue of Future Panty Bonds when and to the extent the City has provided for an Alternate Security or Reserve Insurance 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 The Reserve Account for any Future Parity Bonds may be accumu lated from any other funds which the City legally may have available for such purpose in addition to using ULID Assessments and Net Rev enue 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 in terest to maturity on all outstanding Bonds 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 In the event there shall be a deficiency in the Principal and Interest Ac count 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 the withdrawal of cash therefrom for that pur pose Any deficiency created in the Reserve Account by reason of any withdrawal shall then be made up from the Net Revenue of the Water works Utility first available after making necessary provisions for the required payments into the Principal and Interest Account All money in the Reserve Account not needed to meet the payments of princ pal 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 inter eat 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 earn ings 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 separbte 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 16 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 in the Bonds when due and shall constitute a lien and charge upon that Net Reve nue of the Waterworks Utility and ULID Assessments prior and supe- nor 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 panty with the lien and charge thereon for any outstanding Future Parity Bonds and with respect to that Net Revenue subordinate to the lien and charge upon such revenue for the Prior Lien Bonds Section 17 Refunding of the Refunded Bonds (a) Acquisition and Substitution of Acquired Obligations $585 941 45 of the proceeds of the sale of the Bonds shall be depot dad immediately upon the receipt thereof with the Refunding Trustee to discharge the obligation of the City to carry out the Refunding Plan 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 Acquired Obligations bearing such interest rates and maturing as to principal and interest in such amounts and at such times so as to pro vide for the payment of the amounts required to be paid by the Refund ing Plan The Acquired Obligations are listed and more particularly described in Schedule A attached to the Refunding Trust Agreement but are subject to substitution as set forth below Prior to the purchase of any such Acquired Obligations the City re serves the right to substitute other direct non-callable obligations of the United States of America (RSubstitute ObligationsS) for any of the Acquired Obligations and to use any savings created thereby for any lawful City purpose if (a) in the opinion of Foster Pepper & Shefelman the City s bond counsel the interest on the Bonds will remain ex cluded from gross income for federal income tax purposes under Sec tons 103 148 and 149(d) of the Code and (b) such substitution shall not impair the timely payment of the amounts required to be paid by the Refunding Plan as so verified by an independent nationally recog nized firm ofisLfied public accountants After the pi% „f,9,,„=, of the Acquired Obligations by the Refunding Trustee the C1-.) 'serves the right to substitute therefor cash or Gov ernment Obligations subject to the conditions that such money or se curdles held by the Refunding Trustee shall be sufficcent to carnfrout the Refunding Plan that such substitution will Trot cause the Bonds to be arbitrage bonds within the meaning of Section 148 of the Cqde and regulations thereunder in effect on the_date_olsuch substitution and 6LA LEGALS I (LA LEGALS CrUISEI —T10T13-15-7 nclUCI ea- 404-381 0222 CARPOOLERS Interested in forming a van pool group? I have 15 pass van ready to go If inter ested call 582 9392 ask for Mike 2 round trip tickets, to Charolette SC leaving Pasco Nov 13 return Nov 23 $500 503 567 6457 days 503-567 9352 eves ask for Penny or Jerry 15-PASSENGER VAN For rent Affordable short- /long term rates ideal for church grps fld trips air- port commuting etc Fully insured and maintained Call 582 9392 ask for Mike EMPIMEEZV 8abysitters 503 8abysitters Wanted 505 Child Care Licensed 501 Education/Schools 520 Employment Wanted 525 Help Wanted 530 Data Processing Help Wanted 535 Engineering Help Wanted 540 industrial Help Wanted 545 Management Help Wanted 550 MedlcaUDental Help Wanted 555 Office/Clerical Help Wanted 550 Part Time Help Wanted 555 Professional Help Wanted 570 Restaurant Help Wanted 575 Retail Help Wanted 580 Sales Help Wanted 585 Technical Help Wanted 590 CHILD CARE' Fv.7 LICENSED Best Buddies Daycare F/T 2-5 yrs nutrition progr Hawthorne area 735 9189 Christian Daycare 7 5 1 full time opening 2 4 yrs old 967-2421 CUPID infant Care 943-1143 Daycare in loving home 4 full time openings ages 2 & older 7 5 pm 946-6980 days 943 2288 evenings Daycare my home, 21/2-5 yr olds lots of fun achy ities & TLC drop-ins wel come $12/day Rhid Uptown Area refs upon request 946-4884 Feel good about leaving your pre-school child in my loving happy home Fun activities nutrit meals Eastgate/Wa shington area 586-8897 Home Day Care Referrals Tri City Day Care Assoc CAN HELP/ W Rhld or Rhld 967 5294 Kenn 735- 7830 or 735-4090 Pasco 545-0359 Just Like Home Preschool 21/2 5 DSHS Welcomed 582 7301 Just Like Home Infant Toddler 4 wks - 30mons DSHS Welcomed 582-5117 Lic Daycare, loving family environment has open ings days & nights W Richland 967 5599 Lic Daycare Lincoln Dis- trict F/T P/T drop-in open ings nutritious meals & snacks 735 3123 Lic home day care 2 openings 1 infant Lin coln Schl Dist 735-8425 Little Bears Daycare has 4 F/T openings Nutritional program learning activ- ities $1 50/hr 547-0717 Lots of Fun for ages 3 & up near Edison School Kenn 783 8705 Sugar & Spice Daycare, 2- 4yrs meals/preschool provided 943-1993 0-12, 20 years experi- ence lots of TLC fenced yard 582 7939 g(ig BABYSITTERS Responsible teenager will babysit your loved your home or mine 943-9404 aft 330 shall be recognized as head of the city government for all ceremonial purposes and by the governor for pur poses of military law He shall have the rights priv- ileges and immunities of a member of the council but spell have no regular ad- mini st rative duties as m,ayor in addition to his compensaticen as a coun oilman Or, mayor shall re- ceivellsot.bh crdditional compensation as may be determined by ordinance except that the additional compensation for the mayortoiur/pg th first term sifter this Charter is ; adapted shAll be five hun dred dollars a year payable monthly in equal amounts ur,til such time as the coun cil shall otherwise deter mine by ordinance The council may remove the mayor or the mayor pro tempore from office in accordance with the fol- lowing procedure (1) The council must adopt by an affirmative vote of at least five of its members a res- olution stating the reason for the proposed removal, which resolution shall be served on or mailed to the officer proposed to be re- moved (2) Within fifteen days after such service or mailing, whichever Is the earlier the officer pro- posed to be removed may file with the city clerk written reply and request a public hearing The hearing if requested shall be conducted not earlier than fifteen days nor later than thirty days after the filing of the hearing re- quest if the mayor is the officer proposed to be re- moved the mayor pro tempore shall preside at the hearing and during the council deliberations and action on the ques- tion of removal if the mayor pro tempore is the officer proposed to be re- moved and the mayor is unavailable to preside at the hearing or council de- liberations and action the council shall select an- other member to preside (3) Not less than thirty days after the date of adoption of the first reso- lution and after the public \ hearing, if requested the council, may by resolu- tion remove the officer The ballot title for the prop- osition regarding removal of the Mayor or Mayor Pro Tempore by amending the Richland City Charter at the General Election to be held in the City of Richland on November 5 1991 shall read as follows PROPOSITION 2 Shall the Richland City Charter be amended to pro- vide a process for the re- moval of the Mayor or Mayor Pro Tempore from that office upon the (1) pas sage of a resolution stating reasons for removal (2) a public hearing if requested by the officeholder and (3) by the passage of a second resolution by affirmative vote of five councilmemb- ers removing the officer from the position as pro vided by resolution #73-91 of the City Council? Charter Amendment yes Charter Amendment no Section 1 03 There shall be submitted to the electors of the City the following amendment to Section 5 08 of the Charter of the City of Richland Section 5 08 Competitive Bidding All contracts for public work or im provement where the total contract is in excess of lim- its set by ordinance passed by the Richland City Council and all pur chase of suplies material equipment or nonprofes sional services where the total cost exceeds the lim- its prescribed by ordi- nance, shall be subject to sealed bids Bids shall be advertised by posting notice thereof in a public place in the city and by not less than one publi cation in the official news paper of the city at least ten days prior to the date fixed for the opening of bids All bids shall be sealed and shall be opened publicly at the time and place desig nated in the call for bids The manager or his rep- resentative shall analyze TM, LOST & FOUND Found Boat In Yakima River 1 786-2508 Found Pilate Sheltie, on George Wash Way call 376 4966 Fou04 Pureersian, Liv- ingston / T Pasco call and identify' 547-4312 Found W Richland (City Hall & Royal Crest MH Park) approtc 2 yr old Cocker Spaniel female, cocoa colored No identi- fication 967-5317 Lost Black Lae? male (BJ), near,Merrel s Corner off Garfield Rd 1 297-4411 Reward Lost femt,r4,0 kitten w/elitchert, &t her belly missing some hair on back 946 7189 Lost Golden Retriever puppy 9 wks old Wright St Rich 946 6013 Lost Trained Falcon Band #RU080065 White head/body brown back Last seen So of Kenn May head north w/wind Reward 736-2260 586- 6338 586 0150 Lost 10/22 E 45th & Wash 3 yr old female sealpoint siamese Dusty is the name please call 582-5020 n PERSONALS AA A AAA AAAAAAAA Marton Sophistocated Wilms SURPRISE Him or Her Birthday-Gram Stripper Pro Female & Male Exotic dancers for ALL occasions Treat Yourself! Bachelor & Bachelorette Parties Call Mary 586-9865 Adult Foster Home has opening for a lady or man in need of personal 24 hour care please call 783-2247 Any Witnesses to the Acci dent that occurred Fri 10/18 a Auburn & 1st please call Teresa 783-4130 A F L Exotic Dancers for all occasions Call Angel 967 5250 SIMPLY SEDUCTIVE California girls testing wa ters in Tri Cities Sat Sun & Mon For more info call Ce lest 586-4667 Does someone s drinking cause you a problem? Call Al-Anon/Alateen 545 2720 Elderly Care in our home 547 2540 ELDERLY CARE 24 hrs my home 545-4419 ELECTROLYSIS & MASSAGE THERAPY call Velma 735-9221 IF YOU HAVE A DRINK- ING PROBLEM- Alcoholics Anonymous no dues or fees 735-4086 will give loving care for your loved one in your home 12 hrs a day Reas rate Refs 735-6084 LEATHER & LACE No tricks our treat 2 for 1 male & female exotic danc ers for any occassion or no occassion at all Danielle 783-0226 To the Writer who knew me and my sister at KHS Thank you so much Please call Anonymous is OK u p PUBLIC 0 NOTICES PUBLIC MEETING IN BASIN CITY PLACE Basin City School Date Wednesday October 30 1991 at 7 00 p m Regarding the development of Farmworker Dwell- ing Units in Basin City Contact Jack Lip pold Executive Di- rector Housing Authority of the City of Pasco and Frank- lin County At 547- 3581 or Guillermo Castaneda Exec- utive Director LA Clinica Migrant Health Center at 547 2204 this ordinance in the office of the Finance Director of the City "Bond Registrar" means the fiscal agencies of the State of Washing ton located in Seattle Washington and New York New York as the same may be designated from time to time "Bonds" means the Water and Sewer Revenue and Refunding Bonds 1991 authorized to be issued by this ordinance "1974 Bonds" means the outstanding Water and Sewer Revenue Re- funding Bonds 1974 dated April I 1974 "1983 Bonds ' means the Water and Sewer Revenue Bonds 1983 dated March 1 1983 maturing up to and including March 1 1993 ' City" means the City of Pasco Washington a duly organized code city 0 ' Coverage Requirement in any year means an amount of Net Reve nue of the Waterworks Utility together with ULID Assessments equal to at least 1 25 times an amount equal to the Maximum Annual Debt Service on all bonds payable from the Bond Fund "Future Panty BondsC means 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 22 of this ordinance 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 Assess ments on a panty with the lien and charge upon such Net Revenue for the outstanding Bonds and any Future Panty Bonds "Government Obligations means those government obligations de- fined by RCW 39 53 010(9) as it now reads or hereafter may be amended and which are othervise lawful investments of the City at the time of such investment "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 Wa terworks Utility property City taxes collected by or through the Water works 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 Internal Revenue Code of 1986 as amended "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 Bonds and any Future Parity Bonds Net Revenue of the Waterworks Utility" or Net Revenue" means the Gross Revenue less Operation and Maintenance Expense ' Operating and Maintenance Expenses means all reasonable ex penses incurred by the City in causing the Waterworks Utility to be op- erated 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 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 re- placements to the Waterworks Utility "Plan of Additions" means the system or plan of additions to and bet terments and extensions of the Waterworks Utility specified adopted and ordered to be carried out by Section 2 herein "Principal and Interest Account means the account of that name cre- ated in the Bond Fund for the payment of the principal of and interest on the Bonds and Future Parity Bonds Prior Lien Bonds" means the 1974 Bonds and the 1983 Bonds Refunded Bonds" means the 1983 Bonds maturing in 1994 and 1995 irrevocable provision for the payment and redemption of which is made herein "Refunding Plan" means (1) the placement of sufficient proceeds of the Bonds which with other money of the City will acquire the Ac quired Obligations to be deposited with cash in trust with the Refund mg Trustee (2) the payment of the interest on the Refunded Bonds up to and including March 1 1993 and (3) on March 1 1993 the call payment and redemption of all of the Refunded Bonds at a price of par all as provided in this ordinance and the Refunding Trust Agree- ment "Refunding Trust Agreement" means that agreement between the City and the Refunding Trustee providing for carrying out the Refund ing Plan "Refunding Trustee" means,Puget Sound National Bank of Tacoma Washington "Reserve Account" means the account of that name created in Wash ington the Bond Fund for the purpose of securing the payment of the principal of and interest on the Bonds and Future Parity Bonds 'Reserve Insurance" means in lieu of cash and investments insur ance obtained by the City equal to all of the Reserve Requirement for any Bonds or Future Parity Bonds then outstanding for which such in surance is obtained "Reserve Requirement" means (1) For the Bonds the amount of $230 661 10 (2) For any Future Panty Bonds an amount equal to the difference be- tween the Reserve Requirement for the Bonds and any Future Parity Bonds then outstanding and the least of (a) 10% of the issue price of the Bonds any Future Parity Bonds then outstanding and the Future Panty Bonds proposed to be issued (b) Maximum Annual Debt Serv ice on the Bonds then outstanding any outstanding Future Parity Bonds and the Future Panty Bonds proposed to be issued and (c) 1 25 times Average Annual Debt Service on the Bonds the outstanding Fu ture Panty Bonds and the Future Panty 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 Panty 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 Maxi mum Annual Debt Service and Average Annual Debt Service for calcu lating the Reserve Requirement all bonds payable or proposed to be paid from the Bond Fund shall be treated as a single issue and the last scheduled maturity for any of those issues shall be used as the denom inator "State Loan" means the Public Works Trust Fund Loan as amended dated May 15 1989 "Term Bonds" means those bonds of any single issue or senesdesig nated as such in the ordinance providing for those bonds "ULID" means utility local improvement district "ULID Assessments" means all ULID assessments and installments thereof plus interest and penalties thereon in any ULID created to se- cure the payment of any Future Parity Bonds and pledged to be paid into the Bond Fund "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 "Waterworks Utility" means the combined sanitary sewerage system and water system of the City together with the storm or surface water sewers heretofore or hereafter authorized to be constructed and in stalled as a part of such combined systems and together with all addi bons thereto and betterments and extensions thereof now or hereafter made Section 2 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 Watervorks Utility described in Exhibit A at tached hereto and by this reference made a part hereof There shall be included in the foregoing system or plan the acquisition and installs bon of all necessary valves pumps fittings couplings connections Section 7 013lional Redemption and Open Market Purchase of Bonds Bonds maturing in the years 1992 through 1994 inclusive shall be issued without the right or option of the City to redeem those Bonds prior to their stated maturity dates The City reserves the right and option to redeem Bonds maturing on or after March 1 1995 prior to their stated maturity dates on or after March 1 1994 as a whole at any time or in part on any interest payment date within one or more maturities selected by the City (and by lot within a maturity in such manner as the Bond Registrar shall determine) at par plus accrued in terest to the date fixed for redemption Portions of the principal amount of any Bond in installments of $5 000 or any integral multiple thereof may be redeemed If less than all of the principal amount of any Bond is redeemed upon surrender of that Bond at either of the principal offices of the Bond Registrar there shall be issued to the registered owner without charge therefor a new Bond (or Bonds at the option of the registered owner) of the same in terest rate and maturity in any of the denominations authorized by this ordinance in the aggregate principal amount remaining unredeemed The City further reserves the right and option 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 the date of purchase All Bonds purchased or redeemed under this section shall be cancelled Section 8 Notice of Redemption The City shall cause notice of any intended redemption of Bonds to be given not less than 30 nor more than 60 days prior to the date fixed for redemption by first-class mail postage prepaid to the registered owner of any Bond to be redeemed at the address appearing on the Bond Register at the time the Bond Registrar prepares the notice and the requirements of this sentence shall be deemed to have been fulfilled when notice has been mailed as so provided whether or not it is actually received by the owner of any Bond Interest on Bonds called for redemption shall cease to accrue on the date fixed for redemption unless the Bond or Bonds called are not redeemed when presented pursuant to the call In addition the re- demption notice shall be mailed within the same period postage pre- paid to Moody s Investors Service Inc and Standard & Poor s Corporation at their offices in New York New York or their succes sors to Seattle-Northwest Securities Corporation at its principal office in Seattle Washington or its successor and to such other persons and with such additional information as the City Finance Director shall determine but these additional mailings shall not be a condition prec edent to the redemption of Bonds Section 9 Failure to Redeem Bonds If any Bond is not redeemed when properly presented at its maturity or call date 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 call date until that Bond both princi pal and interest is paid in full or until sufficient money for its payment in full is on deposit in the bond redemption fund hereinafter created and the Bond has been called for payment by giving notice of that call to the registered owner of each of those unpaid Bonds Section 10 Form and Execution of Bonds The Bonds shall be printed or lithograph ed on good bond paper in a form consistent with the provisions of this ordinance and state law shall be signed by the Mayor and City Clerk either or both of whose signatures may be man ual or in facsimile and the seal of the City or a facsimile reproduction thereof shall be impressed or printed thereon Only Bonds bearing a Certificate of Authentication in the following form manually signed by the Bond Registrar shall be valid or oblige tory 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 Water and Sewer Revenue and Refunding Bonds 1991 described in the Bond Ordinance WASHINGTON STATE FISCAL AGENCY Bond Registrar By Authorized Officer The authorized signing of a Certificate of Authentication shall be con cluswe evidence that the Bonds so authenticated have been duly exe- cuted authenticated and delivered and are entitled to the benefits of this ordinance If any officer whose facsimile signature appears on the Bonds ceases to be an officer of the City authorized to sign bonds before the Bonds bearing his or her facsimile signature are authenticated or delivered by the Bond Registrar or issued by the city those Bonds nevertheless may be authenticated delivered and issued 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 per son 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 re- quired office on the date of issuance of the Bonds Section 11 Bond Registrar The Bond Registrar shall keep or cause to be kept at its principal corporate trust office sufficient books for the registration and transfer of the Bonds which shall be open to inspec bon by the City at all times The Bond Registrar is authorized on be- half of the City to authenticate and deliver Bonds transferred or exchanged in accordance with the provisions of the Bonds and this or dinance 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 City Ordinance No 2838 establishing a system of registration for the City s bonds and obligations The Bond Registrar shall be responsible for its representations con tamed in the Bond Registrar s Certificate of Authentication on the Bonds The Bond Registrar may become the owner of Bonds 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 Bond owners Section 12 Preservation of Tax Exemption for Interest on Bonds The City covenants that it will take all actions necessary to prevent in terest on the Bonds from being included in gross income for federal in come 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 at any time during the term of the Bonds which will cause interest on the Bonds to be included in gross income for federal income tax purposes The City certifies that it has not been notified of any listing or proposed listing by the Internal Reve- nue Service to the effect that it is a bond issuer whose arbitrage certd [cations may not be relied upon Section 13 Small Governmental issuer Arbitrage Rebate Exemp- tion and Designation of Bonds as "Qualified Tax-Exempt Obliga- tions " The City finds and declares that (a) it is a duly organized and existing governmental unit of the State of Washington and has general taxing power (b) no Bond which is part of this issue of Bonds is a "on vale activity bond within the meaning of Section 141 of the United States Internal Revenue Code of 1986 as amended (the "Code") (c) at least 95% of the net proceeds of the Bonds will be used for local governmental activities of the City (or of a governmental unit the June- diction of which is entirely within the Jurisdiction of the City) (d) the ag gregate face amount of all tax-exempt obligations (other than private activity bonds or other obligations not required to be included in such calculation) issued by the City and all entities subordinate to the City (including any entity which the City controls which derives its authority to issue tax-exempt obligations from the City or which issues tax exempt obligations on behalf of the City) during the calendar year in which the Bonds are issued is not reasonably expected to exceed $5 000 000 and (e) the amount of tax-exempt obligations including the Bonds designated by the City as "qualified tax-exempt obliga lions" for the purposes of Section 265(b) (3) of the Code during the cal the City s bond counsel the interest on the Bonds will remain ex cluded from gross income for federal income tax purposes under Sec tions 103 148 and 149(d) of the Code and (b) such substitution shall not impair the timely payment of the amounts required to be paid by the Refunding Plan as so verified by an independent nationally recog nized firm of "''1ied public accountants ts n o After the of the Acquired Obligations by the Refunding Trustee the Or, r‘fserves the right to substitute therefor cash or Gov ernment Obligations subject to the conditions that such money or se- curities held by the Refunding Trustee shall be sufficgmt to carryout the Refunding Plan that such substitution will not cause the Bonds to be arbitrage bonds within the meaning of Section 148 of the Code and regulations thereunder in effect on the date of such substitution and applicable to obligations issued on the issue date of the Bonds and that the City obtain at its expense (I) verification by an independent nationally recognized firm of certified public accountants acceptable to the Refunding Trustee confirming that the paymenttKif Drincipd of and interest on the substitute Acquired Obligations-tif paid when due and any other Toney held by the Refunding Trustee will be sufficient to carry out rty \Refunding Plan and (2) an opinion from Foster Pepper & Shefelmao __ond councel to the City its successor or other ititionq u o ally recognized bond counsel to the City to the effect that the disposi tion and substitution or purchase of such securities under the statutes rules and regulations then in force and applicable to the Bonds will not cause the interest on the Bonds or the Refunded Bonds to be included in gross income for federal income tax purposes and that such disposition and substitution or purchase is in compliance with the statutes and regulations applicable to the Bonds Any surplus money resulting from the sale transfer other disposition or redemp- tion 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 Waterworks Utility purpose (b) Administration of Refunding Plan The Refunding Trustee is au thonzed and directed to purchase the Acquired Obligations (or substi tute obligations) and to make the payments required to be made by the Refunding Plan from the Acquired Obligations (or substitute oblige tions) and money deposited with the Refunding Trustee pursuant to this ordinance All Acquired Obligations (or substitute obligations) and the money deposited with the Refunding Trustee and any income therefrom shall be held irrevocably invested and applied in accord lance with the provisions of Ordinance No 2436 this ordinance Chap- ter 39 53 RCW and other applicable statutes of the State of Washington and the Refunding Trust Agreement All necessary and proper fees compensation and expenses of the Refunding Trustee for the Bonds and all other costs incidental to establishing the escrow to accomplish the refunding of the outstanding Refunded Bonds and costs related to the issuance and delivery of the Bonds including bond printing rating service fees insurance premiums verification fees bond counsel s fees and other related expenses shall be paid out of the proceeds of the Bonds (c) Authorization for Refunding Trust Agreement In order to carry out the Refunding Plan provided for by this ordinance the Mayor or City Manager is authorized and directed to execute and deliver to the Refunding Trustee a Refunding Trust Agreement substantially in the form on file with the City Clerk and by this reference made a part hereof setting forth the duties obligations and responsibilities of the Refunding Trustee in connection with the payment redemption and retirement of the outstanding 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 Prior to executing the Refunding Trust Agreement the Mayor or City Manager is authorized to make such changes therein which do not change the substance and purpose thereof or which assure that the escrow provided therein and the Bonds are in compliance with the re- quirements of federal law governing the exclusion of interest on the Bonds from gross income for federal income tax purposes Section 18 Call for Redemption of the Outstanding Refunded Bonds The City calls for redemption on March I 1993 all of the out standing Refunded Bonds at par plus accrued interest Such call for redemption shall be irrevocable after the delivery of the Bonds to the initial purchaser thereof The date on which the Refunded Bonds are called for redemption is the next date on which those bonds may be called at a premium of 3% or less The proper City officials are authorized and directed to cause the fiscal agencies to give such notices as required at the times and in the man ner required by Ordinance No 2436 in order to effect the redemption prior to their maturity of the Refunded Bonds Section 19 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 for the Prior Lien Bonds to pay and secure the payment of debt service on those bonds (3) 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 out standing Bonds and Future Parity Bonds (4) To make all payments required to be made into the Reserve Ac count and to make all payments 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 (5) To make all payments required to be made into the State Loan re- demption 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 (6) To make necessary additions betterments improvements or re- pairs to the Waterworks Utility and to retire byredemption or purchase any outstanding Bonds and Panty Bonds or for any other lawful pur pose Section 20 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 dis- pose 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 Bonds and Future Parity Bonds or to pay the principal of and interest on all the outstanding Bonds and Future Parity Bonds in accordance with the terms thereof and further binds itself ir revocably 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 Bonds and Future 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 en cumbered 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 Bonds and Future Panty Bonds at the earliest possi ble date (b) It will maintain and keep the Waterworks Utility in good repair working order and condition and to operate such utility and the busi ness in connection therewith in an efficient manner and at a reasona bie 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 r \ AMIE. '1007k1r401Fi ' iI H IH IHJI J J JJ IJ JII I JIIIIII III IIII II 4 P 0 BOX 293, 412 WEST CLARK, PASCO, WASHINGTON 99301 FINANCE DEPARTMENT (509) 545-3401 / Scan 726-3401 October 22, 1991 Tr-City Herald P0 Box 2608 Pasco, Wa 99302 Dear Kathy Please publish the attached ORDINANCE(S) Nos 2837, 2838, 2839 on the following date October 27, 1991 Please send two (2) Affidavits of Publication for each Thank you, Catherine D Seaman Deputy City Clerk 545-3402 cds