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HomeMy WebLinkAbout2916 ORDINANCE NO. 2916 AN ORDINANCE of the City of Bremerton, Washington, providing for the issuance and sale of revenue bonds of the city in the aggregate principal amount of $1,025,000 payable from on-and off-street parking revenues of the city for the purpose of providing part of the funds to acquire, construct and install certain off-street parking facilities; fixing the date, form, terms and maturity of such bonds; creating a Revenue Bond Fund for the payment of the principal of and interest on said bonds and any revenue bonds which the city may later issue on a parity therewith; creating a Reserve Account in such Fund; providing certain covenants safeguarding the payment of the principal of and interest on such bonds; and declaring an emergency. WHEREAS, Ordinance No. 2915, adopted October 21 , 1970, specified and adopted a plan for the acquisition, construction and installation by the City of Bremerton of certain off-street parking facilities, declared the estimated cost thereof and provided for the issuance of revenue bonds of the city to pay such cost; and WHEREAS, it is necessary that the date, form, terms, maturities, conditions and covenants of said bonds be now fixed; and WHEREAS, the city has heretofore accepted the offer of Wm. P. Harper & Son & Company and Blyth & Co., Inc., investment bankers of Seattle, Washington, to purchase said bonds; NOW, THEREFORE, the City of Bremerton does ordain: Section 1. Definitions. As used in this ordinance, unless a different meaning clearly appears from the context: "Bond" or "Bonds" means the parking revenue bonds of the city in the aggregate principal amount of $1,025,000 issued pursuant to and for the purposes provided in this ordinance. "City" means the City of Bremerton, a municipal corporation of the State of Washington. "Parking System" means the off-street parking system of the City, provided for in Ordinance No. 2915 and any other off-street parking facilities hereafter constructed by the City. "Gross Revenues of the Parking System" means all gross revenues derived from the Parking System, including without limitation all fees, to~ls, rates, rentals and other charges received for or in connection with the use of the Parking System and all other income and receipts derived by the City from the operation of the Parking System or arising from the Parking System. "Net Revenues of the Parking System" shall mean the Gross Revenues of the Parking System remaining after the payment therefrom of the Current Expenses of the System. "Current Expenses of the Parking System" means the necessary and reasonable expenses of management, operation and repair of the Parking System and any other expenses reasonably necessary to maintain and preserve the Parking System in good repair and working order but does not include depreciation or obsolescence, or expenses in connection with additions, extensions or other capital improvements. "Gross Receipts from On-Street Parking Meters" means all gross revenues or funds derived by the City from any and all street parking meters owned and controlled by the City. It includes all rates, fees and charges made for the parking on public streets and ways within the City and collected by use of parking meters but shall not include fines levied for violation of parking ordinances and regulations. "Parity Bonds" means any revenue bonds of the City issued after the date of issuance of the Bonds, having a lien upon the Gross Revenues of the Parking System and the Gross Receipts from On-Street Parking Meters, for the payment of the principal of and interest thereon equal to the lien for the payment of the principal of and interest on the Bonds. Section 2. Bonds Authorized. The City shall now issue the Bonds for the purpose of providing funds to pay part of the costs of acquiring, constructing and installing the off-street parking -2- garage provided for in Ordinance No. 2915 of the City. Section 3. Description of Bonds. The Bonds shall be dated November l, 1970, shall be in the denomination of $5,000 each, shall bear interest at the following rates payable May l, 1971 and semiannually thereafter on the first days of May and November of each year and shall be numbered and mature November I in order of their number as follows: Bond Nos. Maturity Year Amounts Interest Rates 1-2 1974 $10,000 7 1/2% 3-5 1975 15,000 7 1/2% 6-8 1976 15,000 7 1/2% 9-1! 1977 15,000 7 1/2% 12-14 1978 15,000 7 1/2% 15-18 1979 20,000 7 1/2% 19-22 1980 20,000 7 1/2% 23-26 1981 20,000 7 3/45 27-30 1982 20,000 7 3/4% 31-35 1983 25,000 7 3/4% 36-40 1984 25,000 8 % 41-45 1985 25,000 8 % 46-51 1986 30,000 8 % 52-57 1987 30,000 8 % 58-64 1988 35,000 8 % 65-71 1989 35,000 8 1/8% 72-79 1990 40,000 8 1/8% 80-88 1991 45,000 8 1/8% 89-97 1992 45,000 8 1/4% 98-107 1993 50,000 8 1/4% 108-118 1994 55,000 8 1/4% 119-130 1995 60,000 8 1/4% 131-143 1996 65,000 8 1/4% 144-157 1997 70,000 8 1/4% 158-172 1998 75,000 8 1/4% 173-188 1999 80,000 8 1/4% 189-205 2000 85,000 8 1/4% Both principal of and interest on the bonds shall be payable in lawful money of the United States of America at the office of the City Treasurer in Bremerton, Washington, and shall be obligations only of the special Parking Revenue Bond Fund 1970, created by Section 9 of this ordinance. Section 4. Right of Prior Redemption. The City hereby reserves the right to redeem any or all of the Bonds outstanding on any interest payment date on and after November 1, 1985, at the following prices expressed as a percentage of the principal amount, -3- plus accrued interest to the date of redemption: On November l, 1985 and May l, 1986 at 104 On November l, 1986 and May l, 1987 at 103 On November l, 1987 and May l, 1988 at 102 On November l, 1988 and May l, 1989 at 101 on November l, 1989 and any interest payment date thereafter at 100. Notice of any such intended redemption shall be given by one publication thereof in a newspaper of general circulation within the City, not more than forty (40) nor less than thirty (30) days prior to said redemption date and by mailing like notices at the same time to Standard & Poor's Corporation and Moody's Investors Service, Inc., New York, New York and to Wm. P. Harper & Son & Company and Blyth & Co., Inc. at their main offices in Seattle, Washington, or to their successors if any. Interest on any Bond or Bonds so called for redemption shall cease on such redemption date unless the same shall not be redeemed upon presentation made pursuant to such call. Section 5. Form of Bonds and Coupons~' The Bonds shall be known as "City of Bremerton Parking Revenue Bonds" and shall be in substantially the following form: UNITED STATES OF AMERICA No. $5,000 STATE OF WASHINGTON CITY OF BREMERTON PARKING REVENUE BOND KNOW ALL MEN BY THESE PRESENTS: That the City of Bremerton, a municipal corporation of the State of Washington, hereby acknowledges itself to owe and for value received promises to pay to bearer on the first day of November, 19 .... , the principal sum of FIVE THOUSAND DOLLARS together with interest thereon at the rate of % per annum payable May l, 1971, and semiannually thereafter on the -4- first days of May and November of each year as evidenced by and upon presentation and surrender of the attached interest coupons as they severally become due or until the payment of such principal sum shall have been made or duly provided for. Both principal of and interest on this bond are payable in lawful money of the United States of America at the office of the City Treasurer in Bremerton, Washington, solely out of theispecial fund of the city known as "City of Bremerton Parking Revenue Bond Fund 1970," (hereinafter called the "Bond Fund"), created by Ordinance No. 2916 (hereinafter called the "Bond Ordinance"). The City of Brem~rton has reserved the right to redeem any or all of the bonds of this issue in inverse numerical order on any interest payment date on and after November 1, 1985 at the following prices expressed as a percentage of the principal amount, plus accrued interest to the date of redemption: On November 1, 1985 and May 1, 1986 at 104 On November 1, 1986 and May 1, 1987 at 103 On November l, 1987 and May 1, 1988 at 102 On November 1, 1988 and May 1, 1989 at 101 On November 1, 1989 and any interest payment date thereafter at 100. Notice of any such intended redemption shall be given by one publication thereof in a newspaper of general circu- lation within the city, not more than forty (40) nor less than thirty (30) days prior to said redemption date and by mailing like notices at the same time to Standard & Poor's Corporation and Moody's Investors Service, Inc., New York, New York, and to Wm. P. Harper & Son & Company and Blyth & Co., Inc. at their main offices in Seattle, Washington, or to their successors, if any. Interest on any bond or bonds so called for redemption shall cease on -5- such redemption date unless the same shall not be redeemed upon presentation made pursuant to such call. This bond is one of an issue of parking revenue bonds of the city of like amount, date and tenor, except as to number, rate of interest and date of maturity in the aggre- gate principal amount of $1,025,000, which bonds are issued for the purpose of providing funds to acquire, construct and install certain off-street parking facilities in the city and are payable solely out of the Gross Revenue of the Parking System and the Gross Receipts from On-Street Parking Meters (as such terms are defined in the Bond Ordinance.) The City of Bremerton hereby covenants and agrees with the owner and holder of this bond that it will keep and per- form all of the covenants of this bond and of the Bond Ordinance to be by it kept and performed. The City of Bremerton does hereby pledge and bind it- self to set aside from the City of Bremerton Parking System Revenue Fund created by the Bond Ordinance and to pay into the Bond Fund and the Reserve Account therein the various amounts required by the Bond Ordinance to be paid into and maintained in said Fund and Account all within the times pro- vided in the Bond Ordinance. The City of Bremerton further obligates and binds itself to pay into said Revenue Fund the Gross Revenues of the Parking System and the Gross Receipts from On-Street Parking Meters. Said amountsso pledged are hereby declared to be a prior lien and charge upon the moneys in such Revenue Fund and such Gross Revenues and Gross Receipts, superior to all other charges of any kind or nature and equal in rank to any charges made on such Fund and such Gross Revenues and -6- Gross Receipts to pay and secure the payment of the principal of and interest on any bonds that the city may later issue on a parity with the bonds of this issue. The City of Bremerton has further bound itself to main- tain the Parking System in good condition and repair, to operate the same in an efficient manner and at a reasonable cost and to establish, maintain and collect fees, tolls, rates, rentals and other charges for the use of the Parking System which together with the Gross Receipts from On-Street Parking Meters will make available annually for the payment of the principal of and interest on the oustanding bonds of this issue as the same shall become due an amount equal to at least 1.5 times the average annual debt service on such outstanding bonds after payment of Current Expenses (as defined in the Bond Resolution) of the Parking System, but before depreciation. IT IS HEREBY CERTIFIED AND DECLARED that these bonds are issued pursuant to and in strict compliance with the constitution and laws of the State of Washington and ordinances of the City of Bremerton and that all acts, conditions and things required to be done precedent to and in the issuance of this bond have happened, been done and performed. IN WITNESS WHEREOF, the City of Bremerton, Washington, has caused this bond to be signed with the facsimile signa- ture of its Mayor, to be attested by its City Clerk, the corporate seal to be impressed hereon and the interest coupons attached hereto to be signed with the facsimile signatures of said officials this first day of November, 1970. CITY OF BREMERTON, WASHINGTON By Mayor ATTEST: City Clerk The interest coupons to be attached to said bonds shall be in substantially the following form: No. $ On the first day of . , 19 , the City of Bremerton, Washington, will pay to bearer at the office of the City Treasurer in Bremerton, Washington, the amount shown hereon in lawful money of the United States of America out of the special fund of the city known as "Parking Revenue Bond Fund 1970," said sum being the semi-annual interest due that date on its Parking Revenue Bond dated November l, 1970, and numbered . CITY OF BREMERTON, WASHINGTON By Mayor ATTEST: City Clerk Section 6. Execution of Bonds. The bonds shall be executed on behalf of the City with the facsimile signature of its Mayor, shall be attested by the City Clerk and shall have the corporate seal of the City impressed thereon. Each of the interest coupons attached thereto shall be signed with the facsimile signatures of said officials. Section 7. Disposition of Bond Proceeds. A special fund of the City known as the City of Bremerton Off-Street Parking Construction Fund is hereby created. The proceeds of the sale of the Bonds (except for the payments required to be made into the Parking Revenue Bond Fund 1970 as provided in Section 9 hereof) shall be paid into the Construction Fund and shall be expended solely for the purpose of paying the costs of acquiring, constructing and -8- installing the off-street parking facilities authorized by Ordinance No. 2915 and the costs incidental thereto, including the costs of issuance of the Bonds. When moneys on deposit on the Construction Account exceed the estimated necessary disbursements therefrom for the next thirty (30) days, the City may invest such excess funds in any investments permitted by law. The earnings on any such investments shall be deposited in and become a part of the Construction Fund. Any moneys remaining in the Construction Fund after all of the above-mentioned costs have been paid shall be deposited in the Parking Revenue Bond Fund 1970. Section 8. Parking System Revenue Fund. There is hereby created a special fund of the City to be known as the "City of Bremerton Parking System Revenue Fund" (herein called the "Revenue Fund"). All of the Gross Revenues of the Parking System and all Gross Receipts from On-Street Parking Meters shall be deposited in the Revenue Fund as the same shall be collected and shall be held in the custody of the City Treasurer, separate and apart from all other funds of the City. The Revenue Fund shall be maintained for so long as the Bonds and any Parity Bonds are outstanding. Moneys on deposit in the Revenue Fund shall be used only for the following purposes and in the following order of priority: (1) TO make all payments required to be made into the Parking Revenue Bond Fund 1970 and the Reserve Account therein to pay and secure the payment of the principal of and interest on the Bonds and any Parity Bonds. (2) To pay Current Expenses of the Parking System. (3) For any other lawful purpose of the City, including the purchase of any Bonds or Parity Bonds. Section 9. There is hereby created another special fund of the City to be known as the "City of Bremerton Parking Revenue -9- Bond Fund 1970" (hereinafter called the "Bond Fund"), which Fund shall be held separate and apart from all other funds and accounts of the City. The moneys in the Bond Fund shall be a trust fund for the security and payment of the principal of and interest on the Bonds and any Parity Bonds. All moneys credited to the Bond Fund shall be and are hereby pledged and ordered to be used for the sole purpose of paying the principal of, premium if any, and interest on the Bonds and any Parity Bonds. Immediately after delivery of the Bonds to the purchaser thereof, the City shall deposit in the Bond Fund all accrued interest received together with such portion of the bond proceeds as is required to make a total deposit equal to the amount of interest to become due on the Bonds on May l, 1971. The City Treasurer is hereby authorized and directed and the City hereby obligates and binds itself to set aside and pay into the Bond Fund out of the Revenue Fund those amounts necessary to pay the principal of and interest on the bonds outstanding as the same respectively become due and payable. Said payments shall be made into the Bond Fund on or before the 10th day of each month in the following amounts: A. Beginning with the month of May, 1971, and continuing for as long as any of the Bonds are outstanding and unpaid 1/6 of the amount which will equal the interest to become due and payable on the Bonds Outstanding on the next semiannual interest payment date. B. Beginning with the month of November, 197~ and continuing for as long as any of the Bonds are outstanding and unpaid 1/12 of the amount which will equal the principal amount of the bonds to become due and payable on the next principal payment date. -10- Said amounts so pledged to be paid out of the Revenue Fund into the Bond Fund and the amounts hereinafter pledged to be paid into the Reserve Account created therein are hereby declared to be a first lien and charge upon the Gross Revenue of the Parking System and the Gross Receipts from On-Street Parking Meters and upon the money in such Revenue Fund superior to all other charges of any kind or nature and equal in rank to any charges which may be made later thereon to pay and secure the payment of the principal of and interest on any Parity Bonds. Money in the Bond Fund may be invested in direct obligations of the United States Government, having a guaranteed redemption price or maturing at least ten (10) days prior to the time when such money is needed to pay installments of interest or principal and interest next coming due on any bonds payable out of the Bond Fund. Interest earned on or profits made from the sale of any such investments shall be deposited in and become a part of the Bond Fund. Section 10. Defeasance. In the event that money and/or direct obligations of the United States of America maturing at such time or times and bearing interest to be earned thereon in amounts sufficient to redeem and retire any bonds payable out of the Bond Fund in accordance with their terms are irrevocably set aside in the special account in the Bond Fund to effect such redemption and retirement then no further payments need be made into the Bond Fund for the payment of the principal of and interest on such bonds and the holders of such bonds and the coupons appertaining thereto shall cease to be entitled to any lien, benefit or security of this ordinance, except the right to receive the funds so set aside and pledged and such bonds and such coupons shall be deemed not to be outstanding hereunder or under any other ordinance authorizing the issuance of Parity Bonds. -ll- Section ll. Parking Revenue Bond Reserve Account. A Parking Revenue Bond Reserve Account (herein called the "Reserve Account"), is hereby created in the Bond Fund. The City hereby covenants and agrees that it will set aside and pay into the Reserve Account out of the money in its Revenue Fund on or be£ore the 10th day of each month, commencing with the month of November, 1970, an amount equal to 1/60 of the maximum annual debt service requirements on the oustanding Bonds. The City further agrees that when said required amounts have been paid into 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, pre- mium if any, and interest on all outstanding 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; pro- vided, however, that moneys in the Reserve Account may be with- drawn to pay the last maturing bonds of any single issue or series payable out of the Bond Fund so long as the moneys left remaining in the Reserve Account are at least equal to the maximum annual debt service requirements on all of the remaining 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 Bonds or any Parity Bonds such deficiency shall be made up from the Reserve Account by the with- drawal of cash therefrom. Any deficiency created in the Reserve Account by reason of any such withdrawal shall then be made up from the moneys in the Revenue Fund first available therefor. The moneys in the Reserve Account, to the extent practicable, shall be invested in direct obligations of the United States of America, or in agency securities of the United States of Americ$, maturing -12- or having a guaranteed redemption price no later than the final maturity of the bonds payable out of the Bond Fund. Interest earned on or profits made from the sale of any such investments shall be deposited in and become a part of the Bond Fund ..... Section 12. Adequacy of ReMenue. The corporate authorities of the City hereby 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 costs of maintenance and operation of the Parking System and have not obligated the City to set aside and pay into said Fund and Account a greater amount of the Gross Revenues of the Parking System and the Gross Receipts from On-Street Parking Meters than in their Judgment will be available over and above such costs of maintenance and operation. Section 13. Specific Covenants. The City hereby covenants and agrees with the owner and holder of each of the Bonds for as long as the same remain outstanding as follows: (a) That it will establish, maintain and collect fees, tolls, rateS, rentals and other charges for the use of the Parking System, which together with the Gross Receipts from On-Street Parking Meters will make available annually for the payment of the principal of and interest on the out- standing Bonds as the same shall become due an amount equal to at least 1.5 times the average annual debt service on such outstanding Bonds, after payment of Current Expenses. (b) That it will at all times keep and maintain the Parking System in good repair, working order and condition and will at all times operate the Parking System and the business in connection therewith in an efficient manner and at a reasonable cost. (c) That it will not sell or otherwise dispose of any of the properties of the Parking System (unless the same are no longer used, useful or necessary in the operation thereof and in the producing of revenue required to meet the obliga- tions of the City payable out of such revenue), unless pro- vision is made for payment into the Bond Fund of a sum sufficient to redeem and retire all of the Bonds then outstanding in accordance with the terms thereof. (d) That it will not furnish parking to any customer whatsoever free of charge. (e) That it will at all times establish, maintain and enforce on-street parking regulations designating the places at which street parking meters are to be located and relating to parking at such places, will install parking meters in all streets or portions thereof within said city as to which such regulations apply, will maintain all such parking meters in good operating condition and will replace such parking meters as are required. The City further covenants and agrees that it will collect parking meter fees on all streets or portions thereof within the City as to which the aforementioned regulations apply and on which such parking meters are so installed. Nothing in this resolution shall be construed to prohibit or prevent the installation of new parking meters in places where parking meters are not now located nor to prohibit or prevent the removal or relocation of any parking meters now or hereafter installed when such removal or relocation is made necessary by reason of public safety or convenience, by reason of street widening or street closing or by reason of traffic control. --- (f) That it will carry fire and extended coverage insur- ance on the Parking System as is ordinarily carried on similar facilities by private companies engaged in the operation of the same to the full insurable value and will also carry adequate public liability insurance and other kinds of insur- ance as under good practice are ordinarily carried on properties of similar nature by private companies engaged in the operation of the same. The premiums paid for all such insurance shall be regarded and paid as a Current Expense of the Parking System. (g) That it will keep and maintain proper books and accounts with respect to the operations, income and expenditures of the Parking System and the Gross Receipts from On-Street Parking Meters that are in accordance with proper and legal accounting procedures. That on or before sixty (60) days after each fiscal year of the City's operation of the Parking System, it will prepare or cause to be prepared an operating statement of the Parking System including the Gross Receipts from On-Street Parking Meters for such preceding fiscal year. Each such state- ment shall contain a statement in detail of the Gross Revenue of the Parking System, the Current Expenses of the Parking System, the Gross Receipts from On-Street Parking Meters, and expenditures for capital purposes of the Parking System for such fiscal year; shall contain a balance sheet as of the end of such year, showing the status of all Funds and Accounts created by this ordinance, and shall contain a list of the insurance policies in force at the end of such fiscal year, setting out the amount of each policy, the risks covered thereby and the name of the insurer and the expiration date of such policies. Copies of such state- ments shall be placed on file in the office of the City Clerk and shall be sent to Wm. P. Harper & Son & Company and Blyth & Co., Inc., at their main offices in Seattle, Washington, and shall be open to inspection at any reasonable time by the holder of any of the Bonds. All expenses incurred in the making of such statements shall be regarded and paid as a Current Expense of the Parking System. Section 14. Issuance of Parity Bonds. The City hereby further covenants and agrees with the owner and holder of each of -15- the bonds for as long as the same remain outstanding that it will not issue any Parity Bonds except - A. That the City reserves the right: First: For the purpose of acquiring, constructing and installing, additions, betterments and improvements to and extensions of, acquiring necessary equipment for making necessary replacements or repairs or capital improvements to the Parking System, or Second: For 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 moneys in the Revenue Fund for the payment of the principal thereof and interest thereon Junior and inferior to the lien on such moneys for the payment of the principal of and interest on the Bonds. To issue additional and/or refunding revenue bonds therefor (herein called "Parity Bonds"), and to pledge that payments shall be made out of the Revenue Fund to pay and secure the payment of the principal of and interest on such Parity Bonds on a parity with the payments required to be made out of such Revenue Fund to pay and secure the payment of the principal of and interest on the Bonds upon compliance with the following conditions: (1) That at the time of the issuance of such Parity Bonds there is no deficiency in the Parking Revenue Bond Fund 1970 or the Reserve Account created therein. (2) That the City will covenant in each ordinance author- izing the issuance of Parity Bonds that it will establish, maintain and collect fees, tolls, rates, rentals and other charges for the use of the Parking System, which together with the Gross~Receipts from On-Street Parking Meters for as long -16- as any of the Bonds and any Parity Bonds are outstanding that will make available annually 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 1.5 times the average annual amount required thereafter for the payment of all of such princi- pal and interest after Current Expenses of the Parking System have been paid. (3) That the City will covenant in each ordinance author- izing the issuance of Parity Bonds that it will pay into and maintain in the Reserve Account created by Section ll out of the moneys in the Revenue Fund and~ out of any other moneys legally available therefor an amount equal to 1/60 of the amount, which together with the amounts deposited in the Account as reserves for previously issued Bonds and Parity Bonds will be at least equal to the maximum annual debt service on all outstanding bonds payable from the Parking Revenue Fund 1970, including the Parity Bonds to be issued. (4) That the City shall have on file a certificate from a qualified Parking Garage Consultant or a Consulting Engineer experienced in the planning, development and operation of parking garages, dated not more than ninety (90) days prior to the date of issuance of such Parity Bonds; stating that the Net Revenue of the Parking System, plus the Gross Receipts from On-Street Parking Meters, plus income from Reserve Account investments, plus his estimate of the annual net revenues to be derived from new parking facilities to be financed in whole or in part from the proceeds of the Parity Bonds to be issued, will in each year following the year of completion of such new facilities equal at least 1.75 times the average annual debt service requirements on the outstanding Bonds, any out- standing Parity Bonds and the Parity Bonds to be issued. Such -l?- Net Revenue of the Parking System and Gross Receipts from On- Street Parking Meters shall be adjusted to reflect the parking and meter rates and charges effective on the date of such certificate in the event there has been any change in such rates and charges during or after such twelve (12) month period. B. That the City further reserves the right to issue Parity Bonds for the purpose of refunding by exchange for purchasing or retiring at or prior to their maturity an equal principal amount of any part or all of the Bonds and/or any Parity Bonds outstanding and to pledge that payment shall be made out of the Revenue Fund to pay and secure the payment of the principal of and interest on such refunding Parity Bonds on a parity with the payments required to be made out of such Fund to pay and secure the payment of the principal of and interest on the Bonds upon compliance with Subparagraphs (1), (2) and (3) of Subsection A of this Section. If the issuance of such refunding Parity Bonds and the retirement of outstanding bonds does not require a greater amount to be paid out of the Revenue Fund in any calendar year thereafter for the principal of and interest on such refunding Parity Bonds than was required to be paid out of such revenue in each of the same calendar years for the payment of the principal of and interest on the bonds being refunded, and any premiums paid to effect such refunding shall not be computed in determining such annual amounts. C. Nothing herein contained shall prevent the City from issuing revenue bonds or warrants (coupon or otherwise), the payment of the principal of and interest on which is made a charge upon the Revenue Fund Junior or inferior to the payments required to be made out of such Fund into the Bond Fund and the Reserve Account. Section 15. Sale of Bonds. The action of the City Council in accepting the written offer of Wm. P. Harper & Son & Company -18- and Blyth & Co., Inc., of Seattle, Washington, dated October 13, 1970, to purchase the Bonds under the terms, conditions and covenants thereof as set forth herein and at the price set forth in said offer is hereby in all respects ratified and confirmed. The City officials are hereby authorized and directed to do all things necessary for the prompt issuance, execution and delivery of the Bonds to the purchaser thereof and for the proper use and application of the moneys derived from such sale. Section 16. Effective Date. For the reason that it is necessary that the City obtain the proceeds of sale of the Bonds as soon as possible in order to pay the cost of acquiring, constructing and installing the facilities authorized herein, an emergency is hereby declared to exist, and it is hereby found necessary for the public health, welfare and safety that this ordinance become effective immediately upon its passage, approval and publication. PASSED UNANIMOUSLY by the City Council of the City of Bremerton, Washington, at a regular meeting thereof, signed by the Mayor, and attested by the City Clerk in authentication of such passage, this 21st day of October, 1970. CITY OF BREMERTON, WASHINGTON ~ '~// C~y Clerk -19-