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HomeMy WebLinkAbout3861 CITY OF BREMERTON, WASHINGTON ORDINANCE NO. ~% AN ORDINANCE of the City of Bremerton, 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 $14,500,000 par value of "Water and Sewer Revenue Bonds, 1983," for the pur- pose of providing a part of the funds with which to pay the cost of carrying out such system or plan, to capitalize a portion of the required reserve in the bond redemption fund for those bonds, to refund the outstanding "Water and Sewer Revenue Bond, 1977," of the City, and to pay the cost of issuing and adminis- tering the 1983 bonds; fixing the date, form, inter- est rates, terms and covenants of such 1983 bonds; confirming the sale and providing for the deliv- ery of such bonds to Foster & Marshall/American Express Inc of Seattle, Washington; ratifying all actions taken by or on behalf of the City consistent with this ordinance; and, because of its urgency, providing that this ordinance shall take effect immediately. WHEREAS, the existing combined water and sewerage system of the City of Bremerton, Washington (the "City"), is in need of certain additions, improvements and extensions in order to supply the City properly, its inhabitants and people living in the vicinity thereof, with proper and necessary sanitary sewage collection and disposal services; and WHEREAS, the City has presently outstanding Water and Sewer Revenue Bonds, 1955, issued under date of October 1, 1955, and Water and Sewer Revenue Bonds, 1965, issued under date of December 1, 1965, which have an equal lien and charge on the gross revenue of the combined water and sewera§e system of the City; and WHEREAS, the City has presently outstanding Water and Sewer Revenue Bonds, 1971, issued under date of December 1o 1971, and Water and Sewer Revenue Bonds, 1973, issued under date of December 1, 1973, which have an equal lien and charge on the gross revenue of the combined water and sewerage system of the City and which are junior and subordinate to the claim or lien on such revenue of the 1955 and 1965 water and sewer revenue bonds referred to above; and WHEREAS, the City issued pursuant to Ordinance No. 3398, passed on December 7, 1977, its Water and Sewer Revenue Bond, 1977, under date of December 1, 1977, which bond constituted a subordinate lien and charge on the gross revenues of the System to the Water and Sewer Revenue Bonds, 1955, Water and Sewer Revenue Bonds, 1965, Water and Sewer Revenue Bonds, 1971, and Water and Sewer Revenue Bonds, 1973; and WHEREAS, the City Council has determined that it is neces- sary to specify and adopt a system or plan for additions and betterments to and extensions of the combined water and sewerage system of the City and to issue and sell $14,500,000 par value of water and sewer revenue bonds to provide a part of the funds necessary to carry out that system or plan, to capitalize a por- tion of the required reserve to secure the payment of such bonds, to refund, both principal and interest, the outstanding Water and Sewer Revenue Bond, 1977, of the City and to pay the cost of issuing and administering such 1983 bonds; and WHEREAS, Foster & Marshall/American Express Inc of Seattle, Washington, has made an offer to purchase $14,500,000 par value of water and sewer revenue bonds on the terms and conditions hereinafter set forth; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, as follows: Section 1. As used in this ordinance the following words shall have the following meanings: (a) "Bond" or "Bonds" shall mean any or all of the $14,500,000 of "Water and Sewer Revenue Bonds, 1983," of the - 2 - City issued pursuant to and for the purposes provided in this ordinance. (b) "Bond Fund" shall mean the Bremerton Water and Sewer Revenue Fund, 1971, created by Ordinance No. 2982 for the pur- pose of paying and securing the payment of the principal of and interest on the Outstanding Parity Bonds, the Bonds and any Future Parity Bonds. (c) "1971 Bonds" shall mean the outstanding Water and Sewer Revenue Bonds, 1971, issued under date of December 1, 1971, pursuant to Ordinance No. 2982. (d) "1973 Bonds" shall mean the outstanding Water and Sewer Revenue Bonds, 1973, issued under date of December 1, 1973, pursuant to Ordinance No. 3092. (e) 'Current Water Fund' shall mean the fund of the City of that name heretofore created. (f) "Future Parity Bonds" shall mean any revenue bonds of the City hereafter issued under an ordinance wherein the City pledges that the payments to be made out of the gross revenue of the System or the Current Water Fund of the City into the Bond Fund and Reserve Account therein to pay and secure the payment of the principal of and interest on such revenue bonds will be on a parity with the payments required by Ordinances Nos. 2892 and 3092 of the City and this ordinance to be made out of such gross revenue or Current Water Fund into the Bond Fund and Reserve Account to pay and secure the payment of the principal of and interest on the Outstanding Parity Bonds and the Bonds. (g) "Outstanding Parity Bonds" shall mean the outstanding 1971 Bonds and 1973 Bonds of the City. (h) "Prior Lien Bonds" shall mean the outstanding Water and Sewer Revenue Bonds, 1955, and Water and Sewer Revenue Bonds, 1965, of the City. - 3 - (i) "Reserve Account" shall mean the account of that name created in the Bond Fund. (j) "System" shall mean the existing combined water and sewerage system of the City as the same will be added to, improved and extended as authorized and provided in this ordi- nance and as the same may be added to, improved and extended for as long as any of the Outstanding Parity Bonds, the Bonds and any Future Parity Bonds are outstanding. Section 2. It is found and declared that the public health and welfare require and it is in the best interest of the inhab- itants of the City that certain sewerage system improvements be undertaken within the City, and the City, therefore, specifies and adopts a system or plan for the acquisition and construction of additions and betterments to and extensions of the System 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, easements 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 CH2M/Hill, consulting engineers to 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 - 4 - as such changes do not substantially affect or change the main general parts of such plans or the services to be rendered thereby. Section 3. The life of the additions, betterments and extensions set forth in Section 2 of this ordinance is declared to be more than sixteen years. Section 4. The estimated cost of the acquisition, con- struction and installation of the above-described additions and betterments to and extensions of the System, including the costs of financing, issuance, sale and administration of the Bonds, is declared to be, as near as may be, the sum of $33,229,000, which shall be paid from part of the proceeds received from the issu- ance and sale of the Bonds, from State grants in the approximate amount of $14,018,000, from payments received from the U.S. Navy pursuant to a contract to be entered into between the City and the U.S. Navy, and from any other funds of the City legally available to be used therefor. Section 5. The City Council finds and determines as required by Section 11 of Ordinance No. 2982 as follows: (1) The Bonds are being issued for the purpose of providing part of the funds needed to acquire, construct and install certain additions, betterments and improvements to and extensions of, acquiring necessary equipment for, and making necessary capital improvements to the System. (2) At the time of the adoption of this ordi- nance and at the time of the issuance and delivery of the Bonds there is not nor will there be any defi- ciencies in the Bond Fund or the Reserve Account. (3) The City has provided and made the cove- nants in this ordinance that are required to be made by subsections (a)(2), (a)(3) and (a)(4) of Section 11 of Ordinance No. 2982. (4) At the time of the issuance of the Bonds the City will have on file in the office of the City Clerk a certificate executed by an independent pro- fessional engineer licensed to practice in the State of Washington and experienced in the installation and operation of municipal utilities showing that the - 5 - net revenue of the System (as such net revenue is defined in Section 11 of Ordinance No. 2982) for a period of 12 months out of the 18 months immediately preceding the month of delivery of the Bonds, plus his estimate of the annual net revenue (as such annual net revenue is defined in such Section 11 to be derived by the City from the operation of the additions and improvements to and extensions of the System to be acquired, constructed and installed out of the proceeds of the sale of the Bonds, will equal at least 1.40 times the maximum amount required in any calendar year thereafter for the payment of the principal of and interest on the Prior Lien Bonds, the Outstanding Parity Bonds and the Bonds, outstanding. The conditions contained in Section 11 of Ordinance No. 2982 having been complied with or assured, the payments regulred herein to be made out of the gross revenue of the System and/or money in the Current Water Fund to pay and secure the payment of the principal of and interest on the Bonds shall constitute a lien and charge upon such gross revenue and money equal in rank with the lien and charge thereon for the payments required to be made into the Bond Fund to pay and secure the payment of the principal of and interest on the Outstanding Parity Bonds. The City further covenants and agrees that the Bonds will not be issued and delivered to the purchaser thereof as bonds on a parity with the Outstanding Parity Bonds until the above- described engineer's certificate has been filed with the City Clerk. Section 6. For the purposes of obtaining a part of the funds with which to pay the cost of carrying out the system or plan of additions and betterments to and extensions of the System as adopted by Section 2, to capitalize a reserve to secure the payment of the Bonds, to refund, both principal and interest, the outstanding Water and Sewer Revenue Bond, 1977, of the City and to pay the cost of issuing and administering the Bonds. there shall be issued and sold the Bonds in the principal amount of $14,500,000, and, if there remain any bond proceeds unspent after completion of the above purposes, the City - 6 - reserves the right to pay all or part of carrying out any additional system or plan of additions and betterments to and extension of the System adopted by future ordinance of the City. The Bonds shall be serial in form; shall be dated September 1, 1983; shall be in denominations of $5,000 each or any integral multiple thereof within a single maturity; shall be numbered separately and in the manner and with any additional designation as the Bond Registrar (collectively, the fiscal agencies of the State of Washington located in Seattle, Washington, or New York, New York) deems necessary for the purpose of identification; and shall bear interest payable on March 1, 1984, and semiannually thereafter on each succeeding September 1 and March 1o and mature on September 1 of each year in accordance with the following schedule: Interest Maturity Amounts Rates Years $360,000 18.00% 1985 395,000 7.50 1986 425,000 8.00 1987 495,000 8.50 1988 670,000 9.00 1989 760,000 9.20 1990 840,000 9.40 1991 930,000 9.60 1992 1,020,000 9.75 1993 1,1.15,000 9.90 1994 1,230,000 10.00 1995 1,350,000 10.20 1996 1,485,000 10.35 1997 1,630,000 10.50 1998 1,795,000 10.50 1999 Upon surrender thereof to the Bond Registrar, Bonds are interchangeable 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. Such exchange or transfer shall be without cost to the owner or transferee. - 7 - The Bonds shall be issued only in registered form as to both principal and interest on books or records maintained by the Bond Registrar (the "Bond Register"). Such Bond Register shall contain the name and mailing address of the owner of each Bond or nominee of such owner and the principal amount and number of Bonds held by each owner or nominee. Both principal of and interest on the Bonds shall be pay- able in lawful money of the United States of America. Interest on the Bonds shall be paid by check or draft mailed to the registered owners or nominees at the addresses appearing on the Bond Register on the 15th day of the calendar month immediately preceding the interest payment date. Principal of the Bonds shall be payable upon presentation and surrender of the Bonds by the registered owners at the principal offices of either of the fiscal agencies of the State of Washington in Seattle, Washington, and New York, New York, at the option of such owners. The City reserves the right to redeem the Bonds prior to their stated maturities as a whole or in part in inverse order of maturity (and by lot within a maturity in such manner as the Bond Registrar shall determine) on September 1, 1994, and on any interest payment date thereafter, at par plus accrued interest to the date fixed for redemption. Portions of the principal amount of any Bond, in amounts of $5,000 or any integral multi- ple of $5,000, may be redeemed. If less than all of the princi- pal amount of any Bond is redeemed, upon surrender of such Bond at the principal office 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 like maturity and interest rate in the total principal amount of the uncalled portion of such Bond in any of the denominations authorized by this ordinance. - 8 - Notice of any such intended redemption shall 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 regis- tered owner of any Bond to be redeemed at the address appearing on the Bond Register. The requirements of this section shall be deemed to be complied with when notice is mailed as herein pro- vided whether or not it is actually received by the holder or owner of any Bonds. The interest on the Bonds so called for redemption shall cease on the date fixed for redemption unless such Bond or Bonds so called are not redeemed upon presentation made pursuant to such call. In addition, such redemption notice shall be mailed within the same period, postage prepaid, to Moody's Investor's Service, Inc., and Standard & Poor's Corporation at their offices in New York, New York, or their successors, but such mailing to those New York firms shall not be a condition precedent to the redemption of such Bonds. The City further reserves the right to purchase any of the Bonds on the open market at any time at a price not in excess of par plus accrued interest to date of purchase. Section 7. The Bonds shall be printed, lithographed or typed on good bond paper in a form consistent with the provi- sions of this ordinance, shall be signed by the Mayor and attested by the City Clerk, either or both of whose signatures shall be in facsimile, and shall have a facsimile of the seal of the City Council printed thereon. Only such Bonds as shall bear thereon a Certificate of Authentication in the following form, manually executed 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 bonds described in the within mentioned ordinance and is one of the City of Bremerton, Washington, Water and Sewer Revenue Bonds, 1983. [Name of Bond Registrar] By Authorized Officer Such Certificate of Authentication shall be conclusive evidence that the Bonds so authenticated have been duly executed, authen- ticated and delivered hereunder and are entitled to the benefits of this ordinance. In case either of the officers who shall have executed the Bonds shall cease to be such officer or officers of the City before the Bonds so signed shall have been authenticated or delivered by the Bond Registrar, or issued by the City, such Bonds may nevertheless be authenticated, delivered and issued and upon such authentication, delivery and issue, shall be as binding upon the City as though those who signed the same had continued to be such officers of the City. Any Bond may also be signed and attested on behalf of the City by such persons as at the actual date of execution of such Bond shall be proper offi- cers of the City although at the original date of such Bond any such person shall not have been such officer of the City. Section 8. 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 at all times be open to inspection by the City. The Bond Registrar is authorized, on behalf of the City, to authenticate and deliver Bonds transferred or exchanged in accordance with the provisions of such Bonds and this ordinance and to carry out all of the Bond Registrar's powers and duties under this ordinance. The Bond Registrar shall be responsible for its representa- tions contained in the Reglstrar'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 - 10 - Registrar, and to the extent permitted by law, may act as depos- itory for and permit any of its officers or directors to act as a member of, or in any other capacity with respect to, any committee formed to protect the rights of Bond owners. Section 9. The Bonds shall be negotiable instruments to the extent provided by RCW 62A.8-102 and 62A.8-105. Section 10. There has heretofore been created a special fund of the City known as the "Bremerton Water and Sewer Revenue Bond Fund, 1971" (hereinbefore defined as the "Bond Fund"), which fund is to be drawn upon for the sole purpose of paying the principal of and interest on the Bonds and the principal of and interest on any Outstanding Parity Bonds and Future Parity Bonds as the same shall become due. In addition to the amounts required to be set aside and paid for the Outstanding Parity Bonds, the City obligates and binds itself to set aside and pay into the Bond Fund out of the Current Water Fund, the following fixed amounts necessary to pay the principal of and interest on the Bonds as the same respec- tively become due and payable. Such amounts shall be paid into the Bond Fund on or before the 20th day of each month in the amounts hereinafter specified: (a) Beginning with the month of September, 1983, and continuing as long as any of the Bonds are outstanding and unpaid, an amount equal to at least one-sixth of the interest to become due and payable on the next interest payment date on all of the Bonds then outstanding; and (b) Beginning with the month of September, 1984, and continuing as long as any of the Bonds are outstanding and unpaid, an amount equal to at least one-twelfth of the principal of the Bonds to become due and payable on the next principal payment date. The amounts so pledged to be paid into the Bond Fund and the amounts hereinafter pledged to be paid into the Reserve Account out of the Current Water Fund are declared to be a prior lien and charge upon the gross revenues of the System and the - 11 - money in the Current Water Fund superior to all other charges of any kind or nature (including any transfer of money to other funds of the City and taxes or payments in lieu of taxes payable to the City) except the normal expenses of maintenance and operation of the System (which expenses may include pro rata budget charges for City departments where such charges represent a reasonable distribution and share of actual cost) and the lien and charge thereon of the amounts required to pay and secure the payment of the Prior Lien Bonds and equal in rank to any charges which may be made thereon to pay and secure the payment of the principal of and interest on any Outstanding Parity Bonds and Future Parity Bonds outstanding. Section 11. The Reserve Account has heretofore been created in the Bond Fund and required reserves have been prescribed for the 1971 Bonds and the 1973 Bonds. It is the intention of the City that the $120,000 required to be paid into the Reserve Account on December 1, 1990, by Ordinance No. 2982 for the 1971 Bonds will be paid from the money remaining in the bond redemption fund for the Prior Lien Bonds when the Prior Lien Bonds are fully paid and redeemed. Upon the delivery of the Bonds to the purchaser thereof and payment therefor, the City will deposit $1,000,000 of the proceeds of the Bonds and will deposit $ ~. ~q~ from the Current Water Fund into the Reserve Account on or before September 1, 1984, which will equal the maximum annual debt service on all currently outstand- ing bonds payable from the Bond Fund and the Bonds. The City further covenants and agrees that in the event it issues any Future Parity Bonds, it will provide in each ordi- nance authorizing the issuance of the same that approximately equal monthly payments will be made into the Reserve Account out of the Current Water Fund or out of any other money it may now or later have on hand and available for such purpose so that - 12 - within five years or less from the date of the issuance of such Future Parity Bonds the total amount of such payments, with the money already in the Reserve Account, will be at least equal to the maximum amount required in any calendar year for the payment of the principal of and interest on the Outstanding Parity Bonds, the Bonds outstanding and all outstanding Future Parity Bonds. The City further covenants and agrees that when such required amounts have been deposited in the Reserve Account it will at all times maintain those amounts therein until there is a sufficient amount in the Bond Fund and Reserve Account to pay the principal of, premium if any, and interest on all outstand- ing bonds payable out of the Bond fund, at which time the money in the Reserve Account may be used to pay such principal, premium if any, and interest, except that money in the Reserve Account may be withdrawn to pay the principal, premium if any, and interest on all of the outstanding bonds of any single issue or series payable out of the Bond Fund so long as the money remaining on deposit in the Reserve Account is at least equal to the amounts required in the preceding paragraph as to all of the remaining outstanding bonds payable out of the Bond Fund. In the event there shall be a deficiency in the Bond Fund to meet maturing installments of either interest on or principal of and interest on the Outstanding Parity Bonds, the Bonds and any Future Parity Bonds, such deficiency shall be made up from the Reserve Account by the withdrawal of cash therefrom. Any deficiency created in the Reserve Account by reason of any such withdrawal shall then be made up from the money in the Current Water Fund first available therefor. All money in the Reserve Account may be kept in cash or invested in direct obligations of the United States having a guaranteed redemption price prior to maturity or maturing not - 13 - later than twelve years from date of purchase, and in no event maturing later than the last maturity of the Outstanding Parity Bonds, the Bonds or any Future Parity Bonds outstanding at the time of such purchase. Interest earned on and any profits made from the sale of any such investments shall be deposited in and become a part of the Bond Fund. Section 12. The corporate authorities of the City declare that in fixing the amounts to be paid into the Bond Fund and the Reserve Account as hereinbefore provided they have exercised due regard to the normal expenses of maintenance and operation of the System and the amounts required to pay and secure the payment of the principal of and interest on the Prior Lien Bonds and that they have not obligated the City to set aside and pay into such Fund and Account a greater amount of the revenue of the System than in their judgment will be available over and above such normal expenses of maintenance and operation and amounts required to pay and secure the payment of the principal of and interest on the Prior Lien Bonds. Section 13. The City covenants and agrees with the owner and holder of each of the Bonds for as long as any of the same remain outstanding as follows: (a) It will establish, maintain and collect rates and charges for water and for sanitary sewage collection and disposal service for as long as any of the Prior Lien Bonds, Outstanding Parity Bonds, the Bonds and any Future Parity Bonds are outstanding that will make available for the payment of the principal of and interest on all of such bonds as the same shall become due an amount equal to at least 1.40 times the maximum amount required in any calen- dar year hereafter for the payment of all of such principal and interest after normal expenses of maintenance and operation (including pro rata budget charges for City departments as provided in Section 10 above) have been paid, but before depreciation and before any transfer of money to any funds of the City other than the Bond Fund and taxes or payments in lieu of taxes payable to the City. (b) It will at all times keep and maintain the System in good repair, working order and condition, and will at all times operate the System and the - 14 - business in connection therewith in an efficient manner and at a reasonable cost. (c) It will not sell or otherwise dispose of all of the properties of the System unless provision is made for payment into the Bond Fund of a sum sufficient to redeem and retire all of the Outstand- ing Parity Bonds, the Bonds and any Future Parity Bonds outstanding in accordance with the terms thereof, nor will it sell or otherwise dispose of any portion or properties of the System (unless the same are no longer used, useful or necessary in the operation thereof and in the producing of revenue) unless provision is made for payment into the Bond Fund of an amount which shall be in at least the same proportion to the amount of the Outstanding Parity Bonds, the Bonds and any Future Parity Bonds out- standing that the net revenue available for debt service on all of such bonds for the twelve months immediately preceding such sale or disposal from the portion or properties of the System sold or disposed of bears to the net revenue of the system available for debt service on all of such bonds for the same period. Any money so paid into the Bond Fund shall be used to retire all or part of such bonds outstand- ing at the earliest possible date. (d) It will not furnish water or sanitary sewage collection and disposal service to any customer whatsoever free of charge. (e) The City will keep and maintain proper books and accounts with respect to the operations, income and expenditures of the System that are in accordance with proper and legal accounting proce- dures. On or before ninety days after each fiscal year of the City's operation of the System it will prepare or cause to be prepared an operating state- ment of the System for such preceding fiscal year. Each such statement shall contain a statement in detail of the gross revenue, normal and extraordinary expenses of operation and maintenance, and repairs and expenses for capital purposes of the System for such fiscal year, shall contain a statement as of the end of such year showing the status of all the funds and accounts created by the various ordinances per- taining to the operation of the System and authoriz- ing the issuance of outstanding bonds payable from the revenue of the System, and shall contain a state- ment of the number of water and sanitary sewage collection and disposal customers per class of customer at the end of such year. Copies of such statement shall be placed on file in the office of the City Clerk and shall be open to inspection at any reasonable time by any holder of the Bonds or of any other outstanding bonds of the City payable out of the revenue of the System. All expenses incurred in the maintenance of such books and accounts and the preparation of such statement may be regarded and paid as an expense of operation of the System. (f) All gross earnings and revenue of the System shall be paid into the Current Water Fund as the same are collected. - 15 - Section 14. It will spend the principal proceeds of the Bonds with due diligence to completion of the purposes specified in this ordinance and will make no use of the proceeds of the Bonds or other funds of the City at any time during the term of the Bonds which, if such use had been reasonably expected at the date that the Bonds are issued, would have caused the Bonds to be arbitrage bonds within the meaning of Section 103(c) of the United States Internal Revenue Code of 1954, as amended, and the applicable regulations thereunder. Section 15. The City further covenants and agrees with the owner and holder of each of the Bonds for as long as any of the same remain outstanding that it will not issue any Future Parity Bonds except that the City reserves the right for First, the purpose of acquiring, constructing and installing additions, betterments and improve- ments to and extensions of, acquiring necessary equipment for, or making necessary replacements of or repairs or capital improvements to the System, or Second, the purpose of refunding by exchange or purchasing and retiring at or prior to their maturity any outstanding revenue bonds or revenue coupon warrants of the City that may have a lien on the money in the Current Water Fund for the payment of the principal thereof and interest thereon junior and inferior to the lien on the money in such Fund for the payment of the principal of and interest on the Bonds, to issue additional and/or refunding bonds (hereinbefore defined as "Future Parity Bonds") and to pledge that payments will be made out of the Current Water Fund into the Bond Fund and Reserve Account to pay and secure the payment of the principal of and interest on such Future Parity Bonds on a parity with the payments required in this ordinance to be made out of the Current Water Fund into such Fund and Account to pay and secure the payment of the principal of and interest on the Bonds, upon compliance with the conditions set forth in Section 11 of Ordinance No. 2982 and Section 11 of this Ordinance. - 16 - Nothing herein contained shall prevent the City from issu- ing revenue bonds or warrants the payment of the principal of and interest on which is a charge upon the Current Water Fund junior or inferior to the payments required to be made out of such fund into the Bond Fund and Reserve Account. In the event the City issues revenue bonds Junior or inferior to the charge of the Bonds and Outstanding Parity Bonds on the payments made out of the Current Water Fund to fund costs of improvements to be reimbursed by payments due from the U. S. Navy in accordance with the contract referred to in Section 4 of this ordinance, the connection charge payments received from the Navy as provided by that contract (received either as a lump sum or monthly beginning January 1, 1988) may be pledged to the payment of those bonds subject to the claim of Prior Lien Bonds, Outstanding Parity Bonds, the Bonds and Future Parity Bonds, and may be used exclusively to pay such junior revenue bonds if the net revenue (as such net revenue is defined in Section 11 of Ordinance No. 2982) is otherwise sufficient to satisfy the requirements of Section 11 and of such Prior Lien Bonds, Outstanding Parity Bonds, the Bonds and Future Parity Bonds. Section 16. In the event the City shall issue advance refunding bonds pursuant to the laws of the State of Washington, or have money available from any other lawful source, to pay the principal of and interest on the Bonds or such portion thereof included in the refunding plan as the same become due and pay- able and to refund all such then outstanding Bonds and to pay the cost of refunding, and shall have irrevocably set aside for and pledged to such payment and refunding, money and/or direct obligations of the United States of America or other legal investments sufficient in amount, together with known earned income from the investment thereof, to make such payment and to accomplish the refunding as scheduled, and shall irrevocably - 17 - make provision for redemption of such Bonds, then in that case all right and interest of the registered owners of the Bonds to be so retired or refunded in the covenants of this ordinance and in the revenues, funds and accounts obligated to pay such Bonds, except the right to receive the funds so set aside and pledged, shall thereupon cease and become void, and the City may then apply any money in any fund or account established for the pay- ment or redemption of such Bonds to any lawful purpose as it shall determine. In the event that the refunding plan provides that the refunding bonds be secured by cash and/or direct obligations of the United States of America or other legal investments pending the prior redemption of those Bonds being refunded and if such refunding plan also provides that certain cash and/or direct obligations of the United States of America or other legal investments are irrevocably pledged for the prior redemption of those Bonds included in the refunding plan, then only the debt service on the Bonds and the refunding bonds payable from gross revenue of the System shall be included in the computation of coverage for determining compliance with the rate covenants. Section 17. Foster & Marshall/American Express Inc of Seattle, Washington, has offered to purchase the Bonds at a price of $97.80 per each $100 par value thereof, plus accrued interest to date of delivery of the Bonds, the City to furnish at its expense the printed Bonds and the approving legal opinion of Roberts & Shefelman, municipal bond counsel of Seattle, Washington. Bond counsel shall not be required to review or express any opinion concerning the completeness or accuracy of any official statement, offering circular or other sales mate- rial issued or used in connection with the Bonds, and bond counsel's opinion shall so state. The City Council, being of the opinion that no better price could be secured for the Bonds - 18 - and that it is in the best interests of the City to accept such offer, accepts the same. The City officials are authorized and directed to deliver the Bonds, immediately upon their execution, to the purchaser upon payment therefor in accordance with the offer of the purchaser. Delivery shall be at a location agreed upon by the City and the purchaser at the City's cost. $1,000,000 of the principal proceeds received from the sale of the Bonds shall be deposited in the Reserve Account. A portion of the principal proceeds received from the sale of the Bonds shall be deposited in the Principal and Interest Account of the "Bremerton 1977 Water and Sewer Revenue Bond Redemption Fund" which together with money already on deposit in that fund shall be sufficient and will be used to refund, both principal and interest, the "Water and Sewer Revenue Bond, 1977," at the earliest possible date. The City covenants to call for refunding the "Water and Sewer Revenue Bond, 1977," immediately. The remaining portion of the prlncl- pal proceeds received from the sale of the Bonds shall be deposited in the "Sewer Facility Construction Fund", heretofore created by Ordinance No. 3839 of the City and used solely for the purpose for which the same were authorized, received or set aside. The accrued interest received shall be deposited in the Bond Fund. Section 18. All actions taken by the City, and its officers, employees and representatives on behalf of the City, consistent with the provisions of this ordinance are ratified, approved and confirmed. Section 19. The City has awarded a substantial contract for the construction of a portion of the improvements described in Section 2 of this ordinance and, in order to have money available to pay that contractor and to pay immediate costs related to such improvements, it is urgently needed that the proceeds of the Bonds be received before thirty days after the - 19 - publication of this ordinance. Therefore, the City Council finds that sufficient urgency exists to require that this ordinance take effect immediately. For the reasons stated, this ordinance shall take effect immediately upon its passage and publication. PASSED by the City Council at a regular open public meeting thereof and APPROVED by the Mayor of the City of Bremerton, Washington, this lO day of August. 1983. Mayor ATTEST: CYty Clerk ~ APPROVED AS TO FORM: City Attorney 0452b - 20 - EXHIBIT A BREMERTON SEWERAGE IMPROVEMENTS PROJECT DESCRIPTION The project consists of improvements to the city's waste- water treatment and transmission system, and storm water system. Among the major types of improvements to be con- structed are the following: TREATMENT PLANT A new secondary treatment plant will be constructed on the site of the existing Charleston treatment plant, which will be abandoned. Additional land has been purchased to the north and west of the existing site to accommodate the new construction. The new plant is designed for 10.1 mgd average flow and 29.5 mgd peak flow. The city's Manette treatment plant will also be abandoned upon completion of the improve- ments. Also included is the installation of a pump station and over- flow telemetry system to monitor the status of various system components at the treatment plant main control panel, and the purchase of sludge transport and application equipment includ- ing a highway tractor, 6000 gallon sludge hauling trailer, and a portable diesel-engine driven sludge pump. PUMP STATIONS Pump station improvements include construction of new pump stations 3, 4, 7 and 8 to replace existing pump stations, and modifications to existing pump stations 9, 13, 31, 32 and D. PIPELINES Wastewater transmission system improvements include approxi- mately 9 miles of new pipeline construction, including the following projects: Crosstown Pipeline Included is 19,300 feet of 24-inch through 36-inch diameter pipe. The pipeline route is as follows: From To Park Avenue at Pump Station $ 15th Street Park Avenue and 15th Broadway 15th and Broadway 13th Street 13th and Broadway Naval Avenue 13th and Naval 10th Street 10th and Naval Rainier Avenue 10th and Rainier 9th Street 9th and Rainier Montgomery Avenue 9th and Montgomery Rodgers Street Montgomery and Rodgers Cambrian Avenue Rodgers and Cambrian State Route 304 Cambrian and State Route 304 State Route 3 State Route 304 and State Route 3 New Charleston Treatment Plant Headworks Naval Avenue Force Main included is 2300 feet of 12-inch diameter pipe. The pipe- line will be constructed from the new pump station 3 EXHIBIT A located approximately at 19th Street and Bloomington Avenue, to 19th Street and Naval Avenue, to 13th Street and Naval Avenue. onstructed from existing pump station 14 to existing pump station 13 (being modified as part of these improvements). STORMWATER SYSTEM Included are storm sewer separation projects located through- out the system consisting of construction of new sanitary sewers, storm sewers, and reconnection of catch basins and inlets along the following sewer lines: From To Ironside Ave. & Shore Dr. Shore Dr. & Vandalia Ave. Vandalia & E. 9th St. E. 9th St. & Hayward Ave. E. 9th St. & Hayward Ave. Hayward Ave. & E. llth St. E. llth St. & Hayward Ave. Hayward Ave. & E. 13th St. Hayward Ave. & E. 13th St. E. 13th St. & Ironside Ave. Shore Dr. & (easement) (easement) & Pitt Ave. (easement) & Pitt Ave. Pitt Ave. & Perry Ave. Pitt Ave. & Perry Ave. Perry Ave. & E. 10th St. E. llth St. & Pitt Ave. Pitt Ave. & E. 13th St. Also connecting - Pitt Ave. Harkins St. & Wheaton Way & Harkin St. Vandalia Ave. Vandalia Ave. & E. llth St. Vandalia Ave. & E. llth St. E. llth St. & Ironside Ave. E. llth St. & Ironside Ave. Ironside Ave. E. 13th St. & Vandalia Ave. Vandalia Ave. Nipsie Ave. & E. 10th St. E. 10th St. & Ironside Ave. (Pt. Orchard Bay) Marlow Ave. E. 14th Ave. & Winfield Ave. Winfield Ave. & E. 15th St. Winfield Ave. & E. 15th St. E. 15th St. & Perry Ave. E. 15th St. & Perry Ave. Perry Ave. & Stone Way Also connecting - Perry Ave. E. 16th St. & Hayward Ave. & E. 16th St. E. 16th St. & Hayward Ave. Hayward Ave. Also connecting - Perry Ave. Terrace St. & Nipsie Ave. & Terrace St. Trenton Ave. & E. 17th St. E. 17th St. & Nipsie Ave. Cascade Trail & Brashem Ave. Brashem Ave. & E. 23rd St. E. 18th St. & Winfield Ave. Winfield Ave. & E. Highland St. Winfield Ave. & E. Highland St. E. Highland St. & Winfield Ave. E. Highland St. & Winfield Ave. Winfield Ave. betw. Parker Pl. & Brewster E. 14th St. & Wheaton Way Wheaton Way & Marlow Ave. Wheaton Way & Marlow Ave. Wheaton Way & E. 16th St. Park Ave. & 12th St. 12th St. & McKenzie Ave. 2 From To Gorst Ave. Gorst Ave. & Burwell St. Gorst Ave. & Burwell St. Burwell St. & Auto Center Way Burwell St. & Auto Center Way Auto Center Way before 1st St. First St. & Bruenn Ave. Bruenn Ave. 7th St. & High Ave. High Ave. & (Port Washing- ton Narrows) High Ave. & 12th St. 12th St. & Ohio Ave. High Ave. & 13th St. 13th St. & Lincoln Ave. High Ave. & 10th St. 10th St. & Hewitt Ave. High Ave. & 9th St. 9th Street High Ave. & 13th St. 13th St. past Marguerite Ave. 13th St. & Pennsylvania Ave. Pennsylvania Ave. before llth St. 13th St. & Hewitt Ave. Hewitt Ave. & 7th St. Hewitt Ave. & 8th St. 8th St. & Roosevelt Ave. 7th St. & Roosevelt Ave. Roosevelt Ave. & 10th St. Hewitt Ave. & 7th St. 7th St. & Pennsylvania Ave. Hewitt Ave. & 8th St. 8th St. & Pennsylvania Ave. 3 I, KATHLEEN McCLUSKEY, City Clerk of the City of Bremerton, Washington, certify that the attached copy of Ordinance No. ~ is a true and correct copy of the original ordinance passed on the \O day of August, 1983, as that ordinance appears on the Minute Book of the City. DATED this ~ day of ~~-~-~ , 1983. Kathleen McCluskey, City Cl§rk