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HomeMy WebLinkAbout4053 CITY OF BREMERTON, WASHINGTON ORDINANCE NO. ~d~f AN ORDINANCE of the City of Bremerton, Washington, relating to the combined water and sewerage system of the City; amending Ordinance No. 3887, as amended; authorizing the issuance and sale from time to time of water and sewer revenue bond anticipation notes of the City in the principal amount of not to exceed $4,000,000; providing the form, terms and conditions upon the issuance of such notes; and designating the City Treasurer to sell and deliver the notes and to fix their dates, maximum term, interest rates, maturities and other provisions consistent with this ordinance. WHEREAS, the City Council deems it to be in the best interests of the City that the City borrow money and issue short-term obligations in accordance with the provisions of chapter 39.50 RCW in anticipation of the sale of water and sewer revenue bonds authorized to be issued by Ordinance No. 3887, as amended, for the purpose of providing the funds with which to pay the cost of carrying out the plan of additions and better- ments and extensions of the existing combined water amd sewerage system of the City specified and adopted by such ordinance; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, as follows: Section 1. Section 1 of Ordinance No. 3887, as amended by Ordinances Nos. 3948 and 4015, is amended to read 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 inhabi- tants of the City that certain water system improve- ments to 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 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, construction and installation. The City shall acquire all property, both real and personal, or any interest therein, equipment, rights-of-way, easements and franchises necessary to carry out such plans, which are all as more particu- larly set forth in reports, maps, plans and specifi- cations prepared by the City Engineer and the consulting 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. Pending the issuance of the water and sewer revenue bonds authorized by Ordinance No. 3887, as amended, the City shall issue its water and sewer revenue bond anticipation notes (the "Notes") in a total maximum amount not exceeding $4,000,000. The Notes shall be issued in such amounts and in such series, shall be dated, shall be in such denominations, shall bear such interest at a rate or rates not exceeding 12% per annum computed on a 360-day or 365-day basis, payable at - 2 - such times, have such redemption provisions and shall mature on such dates as determined by the City Treasurer acting under the authority of this ordinance not to exceed unreasonably the time such bonds may be issued to redeem the Notes. Notes with a maturity of one year or less shall be bearer Notes or registered Notes as determined by the City Treasurer, and Notes with a maturity of more than one year shall be registered Notes. Both principal of and interest on the Notes shall be payable solely out of the Water and Sewer Revenue Bond Anticipation Note Fund (the "Note Fund") established by Ordinance No. 3887, as amended, from the proceeds of the water and sewer revenue bonds author- ized by Ordinance No. 3887, as amended, 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 purpose. The Notes shall be payable in lawful money of the United States of America at either the office of the City Treasurer in Bremerton, Washington or at either of the offices of the fiscal agencies of the State of Washington in Seattle, Washington, or New York, New York, as determined by the City Treasurer. The City Council declares and finds that the fixing of the above maximum interest rate is in the best interest of the City. The Notes may be paid from the gross earnings and revenues of the combined and 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 -- 3 -- any bonds hereafter issued on parity of lien therewith or to refund such bonds. Section 3. The Notes shall be printed or lithographed on good bond paper or may be in typewritten or multicopied 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, or, if registered, may have the facsimile signatures of the Mayor and City Clerk and a facsimile reproduction of the City seal printed thereon. Section 4. The City Treasurer is authorized to negotiate the ssle of the Notes, including short-term obligations to redeem maturing Notes, with one or more financial institutions or investment banking firms of his choice 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 each series or issue of Notes must be such that it does not result in any series or issue of Notes having an effective interest rate greater than 12% per annum. Section 5. The City covenants that it will not take or permit to be taken on its behalf any action which would adversely affect the exemption from federal income taxation of the interest on the Notes and will take or require to be taken such acts as may reasonably be within its ability and as may from time to time be requir.ed under applicable law to continue the exemption from federal income taxation of the interest on the Notes. Without limiting the generality of the foregoing, and except to the extent the investment of 8ny Note proceeds is limited to a yield required to comply with federal arbitrage regulations, the City will spend the proceeds of the Notes with due diligence to completion of the purposes specified in this ordinance and will not invest or make other use of the proceeds of the Notes or of its other money at any time during the term -- 4 -- of the Notes which, if such use had been reasonably expected at the date that the Notes are issued, would have caused such 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 thereunder. If the City fails or reasonably expects to be unable to comply with any applicable requirements or restrictions imposed on the City with respect to the Notes under any future federal law or regulations promulgated thereunder, including but not limited to requirements relating to the timing of expenditures of Bond proceeds, restrictions on investment of Bond proceeds pending their expenditure for the purposes of the issue, and calculating and rebating to the United States interest earnings on Bond proceeds in excess of the Bond yield, and the City's bond counsel, at the request of the City, gives an opinion to the City that, as a result of such actual or expected noncom- pliance, interest on the Notes or a portion thereof is taxable, or will become taxable unless unspent Note proceeds are used to redeem such Notes, then the City will ca]] for redemption at par plus accrued interest all such outstanding Notes, or, if fewer than all of the outstsnding Notes are to be redeemed, that number of Notes selected in chronological order of maturity (and by lot within a maturity) as will result in the preservation of the tax exemption for interest on the Notes which remain out- standing, within 75 days of the date on which bond counsel gives such opinion to the City. Bond counsel has not undertaken to monitor the City's compliance with this section and such laws and regulations. For the purposes of this paragraph, the imposition by any future federal law of any alternative minimum tax on the interest on the Notes shall not be deemed to be an event requiring the City to call any Notes for redemption. - 5 - The City has not been notified of any listing or proposed listing by the Internal Revenue Service to the effect that it is an issuer whose arbitrage certifications may not be relied upon. Section 6. 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 source to pay the principal of and interest on the Notes or such portion thereof included in the refunding plan as the same become due and payable and to refund the then outstanding Notes and to pay the costs of refunding, and shall have irrevo- cably set aside in a special fund for and pledged to such psyment 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 invest- ments thereof, to make such payments and to accomplish the refunding as scheduled (hereinafter called the "trust account"), and shall irrevocably make 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 (hereafter called the "defeased Notes") in the covenants of this ordinance and, except as hereinafter provided, in the funds and accounts obligated to the payment of such Notes shall thereafter cease and become void. Such owner or holder thereafter shall have the right to receive payment of the principal of and interest on the defeased Notes from the trust account and, in the event the funds in the trust account are not available for such payment, shall have the right to receive payment of the principal of and interest on the defeased Notes from the funds and accounts obligated to the payment of such Notes. Subject to the rights of the owners or holders of the Notes, the City then may apply any money in any other fund or account established for the - 6 - payment of reden~ption of the defeased Notes to any lawful purposes as it shall determine. Section 7. The principal proceeds received from the sale of the Notes shall be deposited into the Water Main Construction Project Fund (the "Construction Fund") heretofore created in the office of the City Treasurer and used for the purposes set forth herein, except that the proceeds of any Notes issued to redeem maturing Notes shall be deposited in the Note Fund and used for such purpose. Pending expenditure from the Construction Fund, money in such fund may be invested and the investment earnings retained in such fund and applied to the purposes for which the Notes are issued. APPflOVED by the City Council of the City of Bremreton, Washington, at a regular open public meeting thereof on the ,~ day of PASSED by the City Council of the City of Bremerton, Washington, at a regular open Public Meeting thereof on the Z~ day of ,~w~._ _ , 1986. ~~y. y IEBE, Mayor of Bremerton ATiEST: ~.~:v:N L. MCCLUSKEY, City C~erk Director of Administrative Services PI{EP~ BY: Roberts & Shelf leman Bremerton Water Utility EXHIBIT A CAPITAL IMPROVEMENT PROGRAM 1986-1990 The Bremerton Water Utility's Five-Year Comprehensive Plan, adopted by City Council o~ 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 from the replacement of the cited transmission mains due to their excessive age and condition, which have been cause for service failure on numerous occasions. Additionally, scheduled highway system improvements by the Washington State Department of Transportation (SDOT) within the Gorst vicinity mandate that the Bremerton Water Utility relocate and replace the existing aged water mains within the affected project area. Therefore, the City of Bremerton Water Utility proposes to make the following improvements, as scheduled below, to be in compliance with the recommendations of the Comprehensive Plan, as approved; as well as the mandated requirements of the SDOT. 1986-1990 PROGRAM A. Relocation and replacement of approximately forty-year-old steel and cast iron transmission and supply water mains within the Gorst vicinity. The affected project area commences at the intersection of State Route 16 and State Route 160. The project then proceeds in a northerly direction to approximately the locatlon of the Burlington Northern Railroad overpass. This overall project consists of the installation of approximately twelve thousand (12,000) lineal feet of new water mains at an approximate total cost of One Million Dollars ($1,000,000). B. Installation of new transmission and supply water mains commencing at the intersection of Charleston Beach Road and Oyster Bay Avenue and proceeding northerly to a point one hundred twenty (120) feet north of the intersection of Oyster Bay Avenue and "H" Street. This overall project consists of the installation of approximately five thousand and three hundred (5,300) lineal feet of new water mains at an approximate total cost of Five Hundred Thousand Dollars ($500,000). C. Replacement of the forty-year-old cast iron transmission main commencing approximately two hundred (200) feet south of the intersection of the Old Be!fair Valley Road and State Route 3 to approximately four hundred (~00) feet east of the intersection of State Route 3 and State Route 30~. This overall project consists of the installation of approximately twelve thousand and six hundred (12,600) lineal feet of new water main at an approximate total cost of Five Hundred and Thirty Thousand Dollars ($530,000). D. Replacement of the forty-year-old steel transmission main commencing at the intersection of the Old Belfair Valley Road and proceedJng northerly along Sherman Heights Road to Reservoir #4. This overall project consists of the installation of approximately ten thousand (10,000) lineal feet of new water main at an approximate total cost of One Million Dollars ($1,000,000).