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HomeMy WebLinkAbout3887 CITY OF BRE RTON, WASHINGTON ORDINANCE NO. ~] ~%~\~ AN ORDINANCE of the City of Bremorton, ~*~\ % Washington, relating to the combined water and sewer- age system of the City; specifying and adopting a system or plan of additions and betterments to and extensions of the combined water and sewerage system of the City; declaring the estimated cost thereof; authorizing the issuance of $5,000,000 par value of water and sewer revenue bonds for the purpose of providing a part of the funds with which to pay the cost of carrying out such system or plan; providing for the issuance of one or more bond anticipation notes pending the issuance of such bonds; creating a water and sewer revenue bond anticipation note fund; and providing for the negotiated sale of such notes to Peoples National Bank of Seattle, Washington. WHEREAS, in the Judgment of the City Council the public health, welfare, safety and convenience require and it is advis- able that certain additions and betterments to and extensions of the existing combined water and sewerage system of the City be made; and WHEREAS, the City Council deems it to be in the best inter- est of the City that the City borrow money and issue short-term obli§ations in accordance with the provisions of Chapter 39.50 RCW in anticipation of the sale of the water and sewer revenue bonds authorized herein for the purpose of providing the funds with which to pay the cost of carrying out such system or plan; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DO ORDAIN as follows: Section 1. It is found and declared that the public health, welfare, safety and convenience require and it is in the best interest of the inhabitants of the City that certain water system improvements be undertaken within the City, and the City, therefore, specifies and adopts a system or plan for the acqui- sition and construction of additions and betterments to and extensions of the combined water and sewerage system of the City to consist of the acquisition, construction and installation of the improvements described in Exhibit A, attached hereto and by this reference made a part hereof. There shall be included in the foregoing all necessary tees, wyes, valves, pumps, couplings, connections, machinery, equipment and appurtenances, together with all work as may be incidental to and necessary to the foregoing acquisition, con- struction and installation. The City shall acquire all property, both real and per- sonal, or any interest therein, equipment, rights-of-way, ease- ments and franchises necessary to carry out such plans, which are all as more particularly set forth in reports, maps, plans and specifications prepared by the City Engineer and the con- sulting engineers of the City. The City may add or make such changes in the details of such plans, either prior to or during the course of actual construction, which may be found necessary and desirable as long as such changes do not substantially affect or change the main general parts of such plans or the services to be rendered thereby. Section 2. The life of the additions, betterments and extensions set forth in Section 1 of this ordinance is declared to be more than thirty years. Section 3. The estimated cost of the acquisition, con- struction and installation of the above-described additions and betterments to and extensions of the City's combined water and sewerage system, including the costs of financing, issuance, sale and administration of the bonds authorized by this ordi- nance, is declared to be, as near as may be, the sum of $ 5~000~000.00 , which shall be paid from part of the proceeds received from the issuance and sale of the bonds - 2 - authorized by this ordinance, from State grants in the approxi- mate amount of $ None , and from any other funds of the City legally available to be used therefor. Section 4. For the purpose of paying part of the costs of the system or plan ordered adopted by this ordinance, the City shall issue its water and sewer revenue bonds in the amount of not to exceed $5,000,000. The exact amount, date, price, number, denomination, form, covenants, and lien position of and interest rate or rates on such bonds shall be specified later by the ordinance providing for the definitive bonds. Section 5. There is created and established in the office of the City Treasurer a special fund to be known as the "Water and Sewer Revenue Bond Anticipation Note Fund" (the "Note Fund'). Pending the issuance of the water and sewer revenue bonds authorized herein, the City shall issue and sell its water and sewer revenue bond anticipation notes (the "Notes") in the principal amount of $1,000,000. The Notes shall be dated, be in such denominations, bear such interest at a rate or rates not exceeding 12% per annum, payable at maturity, have such redemp- tion provisions and shall mature within three years of the date of the initial issue of such Notes, all as determined by the City Treasurer acting under the authority of this ordinance. Both principal of and interest on the Notes shall be payable solely out of the Note Fund from the proceeds of the water and sewer revenue bonds authorized by this ordinance to be issued to be deposited in such fund, from the proceeds of other short-term obligations issued under the terms of this ordinance 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 Notes on or before their respective maturities from the proceeds of such bonds, addi- tional short-term obligations, or other money available for such - 3 - purpose. The Note shall be payable in lawful money of the United States of America at the office of the City Treasurer in Bremerton, Washington. The City Council declares and finds that the fixing of the above maximum interest rate is in the best interests of the City. The Notes may be paid from the gross earnings and revenue of the combined water and sewerage system of the City, but shall be subordinate to the claims on that revenue of the normal expenses of maintenance and operation of the combined system and the outstanding water and sewer revenue bonds of the City and bonds issued on a parity of llen therewith, and other water and sewer revenue bonds issued to pay the costs of the system or plan of additions and betterments to and extensions of the combined water and sewerage system of the City adopted by Ordinance No. 3861 of the City. The Notes shall be printed or llthographed on good bond paper or may be in typewritten form in a form consistent with this ordinance and State law. The Notes shall be signed by the City Treasurer and shall have the seal of the City affixed thereto. Section 6. The City Treasurer is authorized to negotiate the sale of the Notes with Peoples National Bank of Seattle, Washington, including short-term obligations to redeem the initial Notes, under the terms of this ordinance and under such terms and conditions as the City Treasurer deems to be in the best interests of the City. The sale price of the Notes must be such that it does not result in the Notes' having an effective interest rate greater than 12% per annum. Section 7. The City covenants that it will spend the principal proceeds of the Notes with due diligence to completion of the purposes specified in this ordinance and will make no use of the proceeds of the Notes or of its other money at any time - 4 - during the term of the Notes which will cause the Notes to be arbitrage obligations within the meaning of Section 103(c) of the United States Internal Revenue Code of 1954, as amended, and applicable regulations promulgated thereunder. Section 8. In the event the City shall issue advance refunding bonds or other obligations pursuant to the laws of the State of Washington or have money available from any other lawful sources to pay the principal of and interest on the Notes as the same become due and payable and to refund the Notes and to pay the costs of refunding and shall have irrevocably set aside in a special fund for and pledged to such payment and refunding, money and/or direct obligations of the United States of America or other legal investments sufficient in amount together with known earned income from the investment thereof to make such payments and to accomplish the refunding as scheduled (hereinafter called the "trust account") and shall make irrevo- cable provision for redemption of the Notes, then in that case all right and interest of the owners or holders of the Notes to be so retired or refunded (herein called the "defeased Notes') in the covenants of this ordinance and in any funds and accounts obligated to the payment of the Notes shall thereafter cease and become void except such owner and holder shall have the right to receive payment of the principal of and interest on the defeased Notes from the trust account. After the establishing and full funding of such trust account, the City may then apply any money in any other fund or account established for the payment or redemption of the defeased Notes to any lawful purposes as it shall determine, subject only to the rights of the holders of any other bonds or notes then outstanding. Section 9. The principal proceeds received from the sale of the Notes shall be paid into the Water Main Construction Project - 5 - Fund and used to pay the costs of the improvements herein ordered to be carried out. APPROVED by the City Council on the first reading this 4 day of January, 1984. PASSED by the City Council of the City of Bremerton, signed by the Mayor and attested by the City Clerk in authentication of such passage this 11 day of January , 1984. ~RIE DAw~i~S, Ma~or ATTEST: KATHLEEN L. McCLUSKEY, City Clerk! APPROVED AS TO FORM: GEORGE MACK -6- Bremerton Water Utility EXHIBIT A CAPITAL IMPROVEMENT PROGRAM 1984-1988 The Bremerton Water Utility's 5 Year Comprehensive Plan, adopted by City Council on December 12, 1982, indicates that a Capital Improvement Program be established for the scheduled replacement of major water transmission mains which originate at the Union River supply system and are the main sources of supply to the City of Bremerton. The Comprehensive Plan, as adopted, and made a part hereof by reference, calls for the replacement of the cited transmission mains due to their excessive age and condition, which have been cause for service failure on numerous occasions. Therefore, the City of Bremerton Water Utility proposes to make the following improvements, as scheduled, to be in compliance with the recommendations of the Comprehensive Plan, as approved: 1984 PROGRAM A. Replacement of the forty year old cast iron transmission main from approximately 440' east of the intersection of State Route 304 and State Route 3, thence northeasterly along the west side of State Route 304 for approximately 4,590' to Cambrian Avenue, thence north on the east side of Cambrian Avenue 1,430' to the southeast corner of Cam- brian Avenue and Rodgers Street, thence easterly 850' to the southeast corner of the intersection of Rodgers Street and Montgomery Avenue, thence north on Montgomery Avenue 3,140'; a total distance of approximately 10,010' 1985-1988 PROGRAM A. Replacement of the thirty-five year old steel transmission main from Twin Lakes to the Gorst Pump Station; a distance of 11,500' B. Replacement of the forty year old steel transmission main from the Gorst Pump Station to Reservoir Number 4; Bremerton Water Utility Page 2 Re: CAPITAL IMPROVEMENT PROGRAM 1984-1988 December 1983 a distance of 11,600' C. Replacement of the forty year old cast iron transmission main from the intersection of State Route 3 and the Old Belfair Valley Road to approximately 400' east of the intersection of State Route 3 and State Route 304; a distance of 12,600'