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
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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
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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
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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.
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"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
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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.
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(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
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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
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(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.
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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
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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
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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
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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
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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
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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.
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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
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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
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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