HomeMy WebLinkAbout3040 OrdinanceCITY OF PASCO, WASHINGTON
ORDINANCE NO. ,30 1-I0
AN ORDINANCE relating to the Waterworks Utility of
the City; specifying, adopting and ordering the carrying
out of a system or plan for additions and betterments to
and extensions of the Waterworks Utility of the City;
authorizing the issuance of water and sewer revenue bonds
in the amount of up to $8,520,000 to obtain a part of the
funds with which to pay the cost of carrying out a
portion of that system or plan; authorizing the issuance
of a $3,000,000 par value water and sewer revenue bond
anticipation note pending the issuance of the bonds;
fixing the date, interest rates, form, maturity, terms,
covenants and uses of the proceeds of those bonds;
creating a special note redemption fund and a
construction fund; and providing for the sale and
delivery of the note to West One Bank, Washington, of
Seattle, Washington.
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 1941 Sessions Laws of the State of
Washington (RCW 35.67.320 et seq.), and the words "Waterworks
Utility" of the City shall hereinafter mean the existing combined
sanitary sewerage system and water system of the City, together
with the storm or surface water system of the City, and together
with all additions thereto and betterments and extensions thereof
hereafter made; and
WHEREAS, under RCW 35.92.070, in order for the City to proceed
with the design, construction and financing of those intended
improvements, the plan for such improvements must be adopted by
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ordinance as a system or plan of additions and betterments to and
extensions of the original system or plan for the Waterworks
Utility; and
WHEREAS, the City Council deems it advisable and in the best
interest of the City to adopt such a system or plan for the
Waterworks Utility and to order the carrying out of that system or
plan; and
WHEREAS, in order to finance the carrying out of that system
or plan, it will be necessary for the City to issue its water and
sewer revenue bonds, and it has immediate need to reimburse its
Water/Sewer Fund for advances made to carry out a portion of that
system or plan by the issuance of a revenue bond anticipation note;
and
WHEREAS, West One Bank, Washington, has offered to purchase
the note under the terms set forth in this ordinance; NOW THEREFORE
THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, do ordain
as follows:
Section 1. Specifying, Adopting and Ordering the Carrying
Out of System or Plan. The City specifies, adopts and orders the
carrying out of a system or plan of additions and betterments to
and extensions of the Waterworks Utility of the City described in
Exhibit A attached hereto and by this reference made a part hereof.
There shall be included in the foregoing system or plan the
acquisition and installation of all necessary valves, pumps,
fittings, couplings, connections, equipment and appurtenances, the
acquisition of any easements, rights-of-way and land that may be
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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 City Engineer 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 20 years.
The estimated cost of the acquisition, construction, installation
and financing of the above-described improvements is declared to be
approximately $8,520,000. 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 2. Findings and Determinations. The City Council
finds and determines that it is in the best interest of the City
and its residents that the City carry out the system or plan and
that the gross revenue and benefits to be derived from the
operation and maintenance of the Waterworks Utility of the City at
the rates to be charged for a water and sewer service from the
entire Waterworks Utility will be more than sufficient to meet all
maintenance and operation expense and to permit the setting aside
into the note fund out of the gross revenue of the system of
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sewerage of sufficient amounts to pay the principal of and interest
on the bonds and note authorized by this ordinance when due.
,
Section 3. Authorization of Bonds. For the purpose of
paying part of the cost of carrying out the system or plan adopted
by Section 1 of this ordinance, the City shall issue its water and
sewer revenue bonds in the approximate amount of $8,520,000. Such
bonds may be issued at various times and on a parity of lien on the
gross revenues of the Waterworks Utility with the City's
outstanding water and sewer revenue bonds or may be issued in a
subordinate lien position. The exact amount, date, price, number,
denomination, form, covenants, interest rate or rates on and other
terms of such bonds shall be provided hereafter by ordinance.
Section 4. Purpose, Authorization and Description of Note;
Use of Depositories.
(1) Purpose and Authorization. For the purpose of providing
a part of the funds with which to pay part of the cost of carrying
out the system or plan pending the receipt of the proceeds of the
water and sewer revenue bonds authorized herein, the City shall
issue and sell the water and sewer revenue bond anticipation note
described below.
(2) Description. The note shall be designated the "City of
Pasco, Washington, Water and Sewer Revenue Bond Anticipation Note,
1994" (the "Note"), as a single certificate; shall be in the
principal amount of $3,000,000; shall be as of the date of its
delivery to the purchaser thereof; shall mature 90 days after its
dated date; shall be issued to West One Bank, Washington, as Payee;
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shall be numbered 1; and shall bear interest payable at maturity of
the Note at an adjustable per annum rate of 70% of the West One
Bank internal reference rate (computed on an actual 360-day year
basis), adjustable daily.
The City Council finds and declares that the adoption and use
of such interest rate index for the Note is in the best interest of
the City.
Section 5. Payment of Note. Both principal of and
interest on the Note shall be payable in lawful money on the United
States of America on presentation and surrender of the Note at the
office of the City Finance Director or at such other place agreed
to by the City and the Payee.
The Note shall be payable only from the Note Fund as provided
herein. The Note shall not be a general obligation of the City,
the State of Washington or any political subdivision thereof.
Section 6. Redemption of Note.
(1) Optional Redemption. The City reserves the right and
option to redeem the Note prior to its stated maturity date as a
whole at any time at par plus accrued interest to the date fixed
for redemption.
(2) Notice and Effect of Redemption. Notice of any such
intended optional redemption shall be given at least five business
days prior to the date fixed for redemption by certified or
registered mail, postage prepaid, to the Payee of the Note at its
principal offices in Seattle, Washington, and the requirements of
this Section shall be deemed to have been fulfilled when notice is
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mailed as herein provided, whether or not it is actually received
by the Payee. 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 the original
purchaser of the Note at its principal office and to such other
persons including registered securities depositories, and with such
additional information as the City Finance Director shall deem
appropriate, but those mailings shall not be a condition precedent
to the redemption of the Note.
If such notice has been given and the City shall have set
aside, on the date fixed for redemption, sufficient money for the
payment of the Note called for redemption, the Note called shall
cease to accrue interest after such redemption date, and the Note
shall be deemed not to be outstanding hereunder for any purposes,
except that the Payee thereof shall be entitled to receive payment
of the redemption price and accrued interest to the redemption date
from the money set aside for such purpose.
(3 ) Cancellation of Note. The Note redeemed under this
section shall be cancelled.
Section 7. Note Account. There is created and established
a special fund of the City in the Water/Sewer Fund designated as
the "Water and Sewer Revenue Bond Anticipation Note Account, 1994"
(the "Note Account"). Both principal and interest on the Note
shall be payable solely out of the Note Account from the proceeds
of the water and sewer revenue bonds authorized by this ordinance
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to be deposited in that Account, from the proceeds of other short-
term obligations issued to redeem previously issued and then
outstanding notes, or from other money legally available and to be
used therefor, and the City irrevocably pledges to redeem the Note
on its maturity date from the proceeds of those bonds, additional
short-term obligations or other money available for that purpose.
The Note may be paid from the gross revenue of the City's
Waterworks System and shall be a claim on that revenue subject to
the reasonable charges for maintenance and operation of that
Waterworks Utility and the lien and claim on that revenue of the
City's outstanding water and sewer revenue bonds.
Section 8. Note Form. The Note shall be typed on good
bond paper and consistent with the terms of this ordinance.
Section 9. Execution and Authentication of Note. The Note
shall be signed in the corporate name of the City by the manual
signatures of the Mayor and the City Clerk, and the seal of the
City (or facsimile thereof) shall be imprinted or impressed
thereon.
Section 10. Application of Note Proceeds. The proceeds
derived from the sale of the Note shall be applied as follows:
(1) The amount representing accrued interest on the Note
shall be placed in the Note Account and applied to pay interest on
the first interest payment date for the Note.
(2) The balance of the proceeds shall be placed in the
Water/Sewer Fund as reimbursement of advances made by that fund
toward the carrying out of the system or plan adopted by Section 1
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of this ordinance and to pay the cost of issuance and sale of the
Note.
(3 ) The City also may use Note proceeds or investment
earnings thereon to pay amounts, if any, required to be paid to the
United States Treasury under Section 148(f) of the Code.
Section 11. Tax Exemption Covenants. The City covenants
that it will take all actions necessary to prevent interest on the
Note 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 Note or other funds of the City treated
as proceeds of the Note at any time during the term of the Note to
be included in gross income for federal income tax purposes. The
City also covenants that, to the extent arbitrage rebate
requirements of Section 148 of Internal Revenue Code is applicable
to the Note, it will take all actions necessary to comply (or to be
treated as having complied) with those requirements in connection
with the Note, including the calculation and payment of any
penalties that the City has elected to pay as an alternative to
calculating rebatable arbitrage, and the payment of any other
penalties if required under Section 148 of the Internal Revenue
Code to prevent interest on the Note from being included in gross
income for federal income tax purposes.
The City has not been notified of any listing or proposed
listing by the Internal Revenue Service to the effect that the City
is a bond or note issuer the arbitrage certifications of which may
not be relied upon.
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Section 12. Note Not Negotiable. The Note shall not be an
negotiable instrument.
Section 13. Approval of Bond Purchase Contract. West One
Bank, Washington, of Seattle, Washington has presented a purchase
contract the ("Note Purchase Contract") to the City offering to
purchase the Note under the terms and conditions provided in the
Note Purchase Contract, which written Note Purchase Contract is on
file with the City Clerk and is incorporated by this reference.
The City Council finds that entering into the Note Purchase
Contract is in the City's best interest and therefore accepts the
offer contained therein and authorized its execution by City
officials.
The Note will be prepared at City expense and will be
delivered to the purchaser in accordance with the Note Purchase
Contract, with the approving legal opinion of Foster Pepper &
Shefelman, municipal bond counsel of Seattle, Washington,
accompanying the Note. Bond Counsel shall not be required to
review and shall express no opinion concerning the completeness or
accuracy of any official statement, offering circular or other
sales material issued or used in connection with the Note, and bond
counsel's opinion shall so state.
The City officials are authorized and directed to do
everything necessary for the prompt delivery of the Note to the
purchaser and for the proper application and use of the proceeds of
the sale thereof.
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APPRO ED AS TO FO
ty Attorney
PASSED by the City Council of the City of Pasco, Washington,
at a regular open public meeting this 15th day of August, 1994, and
signed in authentication of its passage this /3— day of
'Nknuj& 1994.
YoJc-ct.ea?-
ATTEST:
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I, DANIEL L. UNDERWOOD, City Clerk of the City of Pasco,
Washington, certify that the attached copy of Ordinance No.
is a true and correct copy of the original ordinance passed on the
day of , 1994, as such ordinance appears on
the Minute Book of the City.
DATED this day of , 1994.
DANIEL L. UNDERWOOD, City clerk
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ANTICIPATED 1994 REVENUE BOND USES
PROJECT ANTICIPATED BOND PROCEEDS
SEWER
Industrial Wastewater Treatment Facility $4,000,000
Sewer From Road 100 to Road 36 2,000,000
Road 68 Interchange Sewer & TRAC 700,000
Industrial Way Sewer Oversize 75,000
TOTAL SEWER $6,775,000
WATER
Court Street Transmission Lines $100,000
Foster Wells Road Water Extension 110,000
Commercial Avenue Waterline 175,000
West Pasco East/West Distribution Loop 300,000
Broadmoor Road Waterline 600,000
Industrial Park Off-site Water 65,000
Ainsworth/Maitland Waterline 300,000
West Pasco Water System Land Option 95,000
TOTAL WATER $1,745,000
TOTAL BOND ISSUE $8,520,000
Exhibit A
„1011111 11111111111 1 111 1 11 11010„
FINANCE DEPARTMENT (509) 545-3401 / Scan 726-3401 / Fax (509) 545-3403
P 0 BOX 293, 412 WEST CLARK, PASCO, WASHINGTON 99301
August 17, 1994
Tn-City Herald
P0 Box 2608
Pasco, Wa 99302
Dear Kathy
Please publish the attached titles of Ordinance(s) No 3040, and 3042 on the
following date
August 21, 1994
Please send two (2) Affidavits of Publication for each
Thank you,
Catherine D Seaman
Deputy City Clerk
545-3402
cds
* No attachments or maps included
rcfg 'agEDI
Ali G 2 q 1994
1:1N NCE DEPT
CITY OF PASCO-
WASHINGTON
ORDINANCE 40 3040
AN ORDINANCE relating
to the WatOrworl s Utility of
the City specifying
adopting and ordering the
carrying out of a system or
plan for ackfltions and bet
terments to and extensions
of the Wate works Utility of
the City autionzing the is
suance of water and sewer
revenue bonds in the
amount of up to $8 520 000
to obtain a part of the funds
with which to pay the cost
of carrying out a portion of
that system or plan autho-
rizing the issuance of a
$3 000 000 par value water
and sewer revenue bond
anticipation note pending
the issuance of the bonds
fixing the date interest
rates form maturity terms
covenants and uses of the
proceeds of those bonds
creating a special note re
demption fund and a con
struction fund and provid
ing for the sale and delivery
of the note to West One
Bank Washington of Seat-
tle Washington
The full text of Ordinance
No 3040 is available free
of charge to any person
who requests it from the
City Clerk of the City of
Pasco (509) 545-3402
P 0 Box 293 Pasco
Washington 99301
-s- Catherine D Seaman
Deputy City Clerk
#1498 8/21/94
Aka
P 0 BOX 2608
PASCO WASHINGTON 99302 2608
PHONE (509) 582 1500
IEWIL ADUEWYOZORM
INVOICE
SOLD TO PASCO, CITY OF LEGALS
F.O. BOX 297
PASCO WA 99701
DATE 00/21/94 LEGAL NO 141498
ACCOUNT NO 5 0 550
DESCRIPTION 1498 CITY OF PASCO , WASH!
TIMES 001 INCHES 3 . 80
TOTAL ,V 40.'90
CtIOTOCE This is 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
LIFFOLJVM1 OF PUDIIICAL11 -11100
COUNTY OF BENTON
STATE OF WASHINGTON
3 c L
CARLA ALFORD , being duly sworn,
deposes and says, 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 County, Washington That the attached is a true
copy of a 1498 CITY OF PASCO , WASH I as it
was printed in the regular and entire issue of the Tr-City Herald
itself and not in a supplement thereof, 1 time(s),
commencing on 00/21_/94 , and ending on
03/21 / 9 41 , and that said newspaper was regulary
distributed to its subscribers during all of this period
("A/L(4z_, 1 4q7.)760
SUBSCRIBED AND SWORN BEFORE ME THIS
DAY OF ,
o_s\HE,fp,
.cp,R
\C" Note public in and for the State of Wash-
PU (r- ington, residing at F'ASCO WA
' COMMISSION EXPIRES 7- AS-- fk Or
< TRANSACTION REPORT >
08-17-1994(WED) 09 15
C MRA NJ S r-t I --r- 3
NO DATE TIME DESTINATION STATION PG DURATION MODE RESULT
4393 8-17 09 09 15095821453 15 0°05'56 NORM E OK
15 0°05 56
FOR City Council
TO Gary CrutchfieI4anager
FROM Dan Underwood, ina ce Director ic-912.17(
SUBJECT BAN, DEFEASANCE AND LTGO BOND ORDINANCES
AGENDA REPORT
REGULAR 8 / 1 5 /9 4
REFERENCE(S)
A) Proposed Bond Anticipation Note Ordinance (in Council packets only - copy
available in Finance Director's Office)
B) Proposed Defeasance Ordinance (in Council packets only - copy available in
Finance Director's Office)
C) Proposed Defeasance Agreement (in Council packets only - copy available in
Finance Director's Office)
D) Proposed Limited Tax General Obligation Bond Ordinance (in Council packets only
- copy available in Finance Director's Office)
E) Preliminary Official Statement (in Council packets only - copy available in
Finance Director's Office)
II ACTION REQUESTED OF COUNCIL/STAFF RECOMMENDATION
MOTION I move to adopt Ordinance No , authorizing issuance of
$8,520,000 of Water and Sewer revenue bonds, including a $3,000,000
bond anticipation note
MOTION I move to adopt Ordinance No , authorizing defeasance of an
outstanding lease purchase agreement
MOTION I move to adopt Ordinance No , authorizing issuance of
$4,530,000 of limited tax general obligation bonds
III FISCAL IMPACT
An increase in debt service in 1995 of approximately $252,000
IV HISTORY AND FACTS BRIEF
It has always been known that completion of the Civic Center would require the issuance
of additional debt Initially it was anticipated that we would issue councilmanic debt for
a portion, and because of debt capacity limits, a portion would be financed as a lease
purchase A change in the debt capacity regulation adopted during the last legislative
session has double our non-voted debt capacity As a result we can now finance the total
remaining portion of the project with councilmanic bonds
Because the activity center portion of the civic center will be paid for with future block
grant funds, HUD requires a separate accounting of funds, to accommodate this the bond
issue will be divided in two series Series A, in the amount of $780,000, will be
specifically for construction of the activity center Series B, in the amount of,
$3,750,000, will be used for completion of the civic center and to repay interfund
loans
The city's current general debt obligation includes $1,910,000 of remaining
principal for the lease purchase of the industrial wastewater facility land As a result of
this debt being included as a general obligation of the city, our debt capacity limit will be
exceeded with the proposed $4,530,000 bond issue It has always been the intention to
sell the industrial wastewater land to the water/sewer utility, now is an appropriate
time to do so In order for the utility to have enough cash to purchase the land prior to
the issuance of the councilmanic bonds, the city must issue a Bond Anticipation Note
(BAN) A BAN is a short term note that will be paid with the proceeds of a future bon
A
issue, in this case, utility revenue bonds anticipated to be issued in October The BAN
proceeds will be used to redeem the outstanding lease purchase debt, thus freeing enough
debt capacity to issue the proposed councilmanic bonds The interest paid for the BAN
will be more than offset by the early redemption of the lease purchase Certificates of
Participation
V DISCUSSION
Alan Dashen, a representative of Seattle Northwest Securities Corporation, will be here
to purchase the bonds
VI OTHER FACTS
All the blanks currently found in the Preliminary Official Statement will be filled in by
meeting time on Monday August 15, 1994