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HomeMy WebLinkAbout2225 ORDINANCE NO. ~225 AN ORDINANCE of the City of Bremerton, Washington, providing for the issuance and sale of $350,000 of water and sewer revenue bonds of the City out of the $2,000,000 of such bonds authorized by Ordinance No. 2102 of the city for the purpose of providing funds to acquire, construct and install certain additions and improvements to and exten- sions of the combined water and sewerage system of the city as author- ized by said ordinance; providing the date, form, terms and maturities of said bonds to be issued; creating a special fund for the payment of the principal thereof and interest thereon and a Reserve Account; and providing and adopting certain covenants and protective features safe- guarding the payment of such principal and interest; and declaring an emergency. WHEREAS, by Ordinance No. 2102 of the city, passed and approved February 9, 1988, the issuance of water and sewer revenue bonds of the city in the total principal sum of not to exceed $2,000,000 was auth- orized in order to provide funds to pay the cost oi' acquiring, construc- ting and installing certain additions and improvements to and extensions of the water supply and distribution system of the city with which sys- tem the sanitary sewage disposal systemI Of the city was theretofore com- bined in the manner required by law; and WHEREAS, pursuant to Ordinance No. 212A of the city, passed and ap- proved September 14, 195~, $1,300,000 of such bonds, dated October l, 1988, were issued and sold in order to provide funds to pay the cost of acquiring, constructing and installing part of such additions, improve- ments and extensions authorized in subparagraphs A and B of Section i of said Ordinance No. 2102 and to acquire a site or sites for water reser- voirs in East Bremerton as authorized in subparagraph E. of said Section l; and ORDINANCE NO. 2225 (CON'T) WHEREAS, due to rising costs and other unforseeable factors, the proceeds of the sale of said bonds were only sufficient to carry out subparagraph A and to acquire a site for a water reservoir in East Brem- erton, and it is now deemed necessary that the additions and improvements described in subparagraphs B and C of Section I of said Ordinance No. 2102 be acquired, constructed and installed and that the city construct a reservoir on the site therefor acquired in East Bremerton as authorized in subparagraph E of said Section I of said ordinance; and WHEREAS, to provide the funds necessary to acquire, construct and install such additions, improvements and extensions it is deemed neces- sary that the city now issue and sell $350,000 more of said $2,000,000 of bonds authorized by said Ordinance No. 2102; and WHEREAS, Section ll of Said Ordinance No. 2124 provided that water and sewer revenue bonds of the city could be issued on a parity with the outstanding bonds of said October l, 1955 issue if certain conditions were met; and WHEREAS, it is to the best interest of the city and its inhabitants that the water and sewer revenue bonds authorized herein be issued on a parity with said outstanding water and sewer revenue bonds of the city issued under date of October l, 1955, and it appears to the Council and the Council does hereby find that the conditions required in Section ll of said Ordinance No. 2124 have been and at the time of the issuance of the bonds authorized herein will be met, and that such $350,000 of water and sewer revenue bonds may now be issued on a parity with such outstand- ing October l, 1955 water and sewer revenue bonds of the city; and WHEREAS, the city also has outstanding $394,000 of its water and sewer revenue bonds issued under date of October l, 1949, which bonds constitute a first lien upon the revenues of the combined water and sew- erage system of the city except for necessary costs of maintenance and operation thereof; NOW, THEREFORE, THE CITY OF BREMERTON DOES ORDAIN: Section 1. As used in this ordinance the following words shall have the meanings hereinafter set forth: (a) The word "Bonds" shall mean the $350,000 of water and sewer revenue bonds of the city issued pursuant to and for the purposes pro- vided in this ordinance and as originally authorized by Ordinance No. 2102 of the city. (b) The word "System" shall mean the existing combined water and sewerage system of the city as the same will be added to, improved and extended out of the proceeds of the sale of the Bonds and as it may lat- er be added to, improved and extended for as long as any of the Bonds are outstanding. (c) The words "Outstanding Prior Lien Revenue Bonds" shall mean the water and sewer revenue bonds of the city issued under date of Oct- ober l, 1949, of which there are now outstanding bonds in the total principal sum of $394,000. (d) The words "Outstanding Parity Revenue Bonds" shall mean the water and sewer revenue bonds of the city issued under date o~ October l, 1955, of which there are now outstanding bonds in the total princi- pal sum of $1,295~000, and with which the Bonds will be on a parity. The Outstanding Prior Lien Revenue Bonds and the Outstanding Par- ity Bonds are the only revenue bonds of the city outstanding at this time with the principal thereof and interest thereo~ payable out of the Current Water F~uud of the city. (e) The words "Current Water Fund" shall mean the fund of the city heretofore created, into which all gross earnings and revenue of the System must be paid. (f) The words "1955 Revenue Bond Redemption Fund" shall mean the Bremerton 1955 Water and Sewer Revenue Bond Redemption Fund and the Re- serve Account therein created by Sections 7 and 8 of Ordinance No. 2124 for the purpose of paying and guaranteeing the payment of the principal of and interest on the Outstanding Parity Revenue Bonds. Section 2. The Council hereby finds and determines, as required by Section ll of Ordinance No. 2124, as fol&ows: ORDINANCE NO. 2225 (CON'T) First, that the Bonds are issued for the purpose of acquiring, con- structing and installing additions and improvements to and extensions of the System. Second, that at the time of the adoption of this ordinance and at the time of the issuance and delivery of the Bonds there is not nor will there be aw deficiency in the 1955 Revenue Bond Redemption Fund. Third, that the Council has been assured that at the time of the is- suance of the Bonds it will have on file a certificate from John W. Cun- ningham, an independent licensed professional engineer and member of the firm of John W. Cunningham & Associates, consulting engineers of Portland, Oregon, showing that the annual average net revenues of the System for thirty-six consecutive months of the forty-eight months next preceding the issuance of the Bonds, plus his estimate of the annual net revenues to be derived from the operation of the additions and improvements to and extensions of the System acquired, constructed and installed out of the proceeds of the sale of the Bonds will equal at least 1.4 times the max- imam amount required to be paid in any calendar year hereafter for princi- pal of and interest on the Outstanding Prior Lien Revenue Bonds, the Out- standing Parity Revenue Bonds, and the Bonds. The limitations contained in Section ll of Ordinance No. 2124 having been complied with or assured in the issuance of the Bonds, the payments into the 1957 Water and Sewer Revenue Bond Redemption Fund created in this ordinance for the payment of the principal of and interest on the Bonds and the payments into the Reserve Account created in said 1957 Bond Redemp- tion Fund required by this ordinance shall con~itute a lien and charge up- on the moneys in the Current Water Fund equal in rank with the lien and charge upon the moneys in such Fund for the payments required to be made into the 1955 Revenue Bond Redemption Fund for the purpose of paying and guaranteeing the payment of the principal of and interest on the Outstand- ing Parity Revenue Bonds. Section 3. The city shall acquire, construct and install the follow- ing aaditions and improvements to and extensions of the System provided for in Section i of Ordinance No. 2102, passed and approved February 9, 1955: B. The city shall complete the installation of pipe in the McKenna Falls-Bremerton supply line, replace the temporary pipe previously in- stalled in said line, and shall construct and equip a cjlorine house on said line.~near McKenna Falls. C. The city shall construct and install a new water main ~cross the Port Washington Narrows on the bridge now being erected. E. The city shall construct an earth-covered reservoir of reinforc- ed concrete in East Bremerton on a'site acquired therefor, and shall al- so reconstruct and improve existing reservoirs in the East Bremerton area. That for the purpose of providing funds to acquire, construct and install said additions and improvements to and extensions of the System, the city shall issue the bonds out of the $2,000,000 of such bonds auth- orized by said Ordinance No. 2102. The Bonds shall be dated June l, 1957, shall be in denominations of $1,000 each, shall bear interest at a rate of not to exceed 6% per annum payable semiannually on the first days of June and December of each year as evidenced by coupons to be attached to said Bonds, and shall be number- ed and mature in order of their number as follows: Bond Nos. Maturity DaSe Amount 1-5 ~une l, 1958 $ 5,000 6-10 June l, 1959 5,000 ll-15 June l, 1960 5,000 16-20 June l, 1961 5,000 21-25 June l, 1962 5,000 26-35 June 1, 1963 10,000 36-45 June l, 1964 lO,000 46-55 June l, 1965 10,000 56-66 June 1, 1966 11,000 67-77 June 1, 1967 11,000 78-88 June l, 1968 ll,000 89-100 June l, 1969 12,000 1Ol-ll3 June l, 1970 13,000 Bond Nos. Maturit~ Date Amount $ 114-126 June l, 1971 13,000 127-139 June 1, 1972 13,000 140-153 June 1, 1973 14,000 154-167 June 1, 1974 14,000 168-181 June 1, 1975 14,000 182-196 June 1, 1976 1S,O00 197-211 June 1, 1977 15,000 212-227 June 1, 1978 16,000 228-243 June 1, 1979 16,000 244-260 June 1, 1980 17,000 261-277 June 1, 1981 17,000 278-295 June 1, 1982 18,000 296-313 June 1, 1983 18,000 314-331 June 1, 1984 18,000 332-350 June 1, 1985 19,000. Both principal of and interest on the Bonds shall be payable in law- ful money of the United States of America at the office of the City Treas- urer in Bremerton, Washington, and shall be obligations only of the spec- ial 1987 Bond Redemption Fund hereinafter created. Section 4. The city hereby reserves the right to redeem any or all of the Bonds outstanding in inverse numerical order on any of the follow- ing interest payment dates at the following prices expressed as a percent- age of the principal amount: June l, 1962 to and including December l, 1963 at 103 June l, 1964 to and including December l, 1968 at 102 June l, i966 to and including December l, 1966 at 101 June l, 1967 and thereafter at 100. Notice of any such intended redemption shall be given by one publi- cation thereof in the official city newspaper not more than forty nor less than thirty days prior to said redemption date and by mailing a like notice at the same time to the manager or Joint managers of the account that purchases the Bonds at their sale by the city at its or their main place~or places of business, or to the successor or successors in business of said manager or joint managers, if any, at its or their main place or places of business. Interest on any Bond orBonds so called for redemp- tion shall cease on such redemption date unless such Bond or Bonds are not redeemed upon presentation made pursuant to such call. Section 5. The Bonds shall be in substantially the following form: UNITED STATES OF AMERICA NO._. $1,000 STATE OF WASHINGTON CITY OF BREMERTON WATER AND SEWER REVENUE BOND 1957 KNOW ALL MEN BY THESE PRESENTS: That the City of Bremerton, a municiapl corporation of the State of Washington, hereby acknowledges itself to owe and for value received pro- mises to pay to bearer on the first day of June, 19., the principal sum of ONE THOUSAND DOLLARS together with interest thereon at the rate of . % per annum payable semi- annually on the first days of June and Decembe~ of each year as evidenced by and upon presentation and surrender of the attached interest coupons as they severally become due. 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 the special fund of the city known as "Bremerton 1957 Water and Sewer Revenue Bond Redemption Fund" created by Ordinance No. of the city. The city has reserved the right to re~ee~ any or all of the outstand- ing bonds of this issue in inverse numerical order on any of the follow- ing interest payment dates at the following prices expressed as a percent- age of the principal amount: June l, 1962 to and including December l, June l, 1984 to and including December l, 1965 at 102 June l, 1966 to and including December l, 1966 at 101 June l, 1967 and thereafter at 100. Notice of any such intended redemption shall be given ~y one publica- tion thereof in the official city newspaper not more than forty nor less than thirty days prior to said redemption date and by mailing a notice at the same time to as of the account that purchased these bonds at their sale bY the city'at ORDINANCE'NO. 2225 (CON'T) or to the in business of said ,if any, at . This bond is one of an issue of water and sewer revenue bonds of the city of like amount, date and tenor in the total principal sum of $350,000~ which bonds are issued pursuant'to laws of the State of Washington and Ord- inances of the city for the purpose of providing funds to acquire, construct and install certain additions and improvements to and extensions of the combined water and sewerage system of the city and are payable solely out of the gross revenue of said ~mbined system. The City of Bremerton hereby covenants and agrees with the holder of this bond that it will keep and perform all the covenants of this bond and of Ordinances No. 2102, No. 2124, and No. to be by it kept and per- formed. The city does hereby pledge and bind itselt to set aside from the mon- ey in its Current Water Fund, and to pay into said Bond Hedemption Fund and the Reserve Account created therein by sai~! Ordinance No, , the various amounts required by said ordinance to be paid into and ma~-~ined in said Fund and Account, all within the times provided by said ordinance. Said amounts so pledged are hereby declared to be a prior lien and charge upon the money in said Current Water Fund superior to all other charges of any kind or nature except the necessary cost of maintenance and operation of such combined system and the charges necessary' for the payment of the prin- cipal of and interest on the outstanding water and sewer revenue bonds of the city issued under date of October l, 1949, and equal in rank with the charges upon the money in said Current Water Fund for the payment of the principal of and interest on the outstanding water and sewer revenue bonds of the city issued under date of October l, 1955. The city has further bound itself to maintain said combined water and sewerage system in good repair, working order and condition, to operate the same in an efficient manner and at a reasonable cost, and to establish, maintain and collect rates and charges for water and sanitary sewage dis- posal service that will provide revenue sufficient to pay the necessary cost of maintenance and operation of said combined system, .to pay the a- mounts necessary for the payment of the principal of and interest on said outstanding water and sewer revenue bonds of the city, and to pay into said 1957 Bond Redemption Fund and the Reserve Account therein the amounts which the city has pledged to be set aside and so paid therein. It is hereby certified and declared that this ~nd and the bonds of this issue are issued pursuant to and ins trict compliance with the Consti- tution and laws of the State of Washington and ordinances of the City of Bremerton, and that all acts, considitons and thin~s 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, bas caused this bond to be signed by its Mayor, to be attested by its Clerk, the corporate seal of the city to be impressed hereon, and the interest coupons attached hereto to be signed with the facsimile signatures of said officials, this first day of June, 195V. CITY OF BREMERTON, WASHINGTON By ATTEST: Mayor City Clerk The interest coupons to be attached to the Bonds shall 'be in sub- stantially the following form: NO. $ On t-'~irst day of .,19 , the City of Bremerton, Washington, will pay to bearer at the office of the City Treasurer in Bremerton the sum of DOLLARS in lawful money of the United States o~f America out of the spec- ial fund of the city known as "Bremerton 1957 Water and Sewer Revenue Bond Redemption Fund," said sum being the semiannual interest due that day on its water and sewer revenue bond dat- ed June 1, 1957, and numbered . CITY OF BHEMERTON, WASHINGTON ATTEST: By. Mayor City Clerk Section 6. The Bonds shall be signed on behalf of the city by its Mayor, shall be attested by the City Clerk, and shall have the corporate seal of the city impressed thereon. The interest coupons attached to the Bonds shall be signed with the facsimile signatures o£ said officials. Section 7. That there be and is hereby created a special fund of the city bo b~ knSwn as "Bremerton 1957 Water and Sewer.Revenue Bond Redemption Fund" (herein-called the "1957 Bond Redemption Fund"), which Fund is to be drawn upon for the sole purpose of paying the principal of and interemt on the Bonds outstanding ~s the same shall become due. From and after the date of the Bonds and fo~ as long as any of the same are outstanding and unpaid, the City Treasurer shall set aside and pay into the 1957 Bond Redemption Fund out of the Current Water Fund, at least thir- ty days prior to the respective dates on which the interest on or principal of and interest on the Bonds shall become due, bhe amount of such interest or principal and interest next coming due on the Bonds outstanding. Such payments shall be a charge upon the money in the Current Water Fund ranking equally and ratably and on a parity with the payments required by Ordinance No. ~124 to be made into the 1955 Revenue Bond Redemption Fund. When there is sufficient money in the 1957 Bond Redemption Fund and the Reserve Account therein hereinafter created to redeem and retire all of the Bonds outstanding and to pay the interest and premium if any due thereon ~uch redemption date. then no further payments need be made into the 1957 Rend Redemption Fund. Said amounts so pledged to be paid into the 1957 Bond Redemption Fund and the Reserve Account therein are hereby declared to be a prior lien and charge upon the money in the 6urrent Water Fund superior to all other char- ges of any kind or nature except the necessary cost of maintenance and op- eration of the System and the charges necessary for the pa~nent of the principal of and interest on the Outstanding Prior Lien Revenue Bonds, and equal in rank to the charges upon the money in such Current Water Fund for the payments required for the payment of the principal o2'~and interest on the Outstanding Parity Revenue Bonds. Section 8. A Reserve Account is hereby created in the 195V Bond Redemp- tion Fund", and the city hereby agrees that it will set aside and pay into said Reserve Account, out of the money in the Current Water Fund and out of any other moneys which it may now or later have on hand and available for such purpose, the sum of $20,000 by October l, 1962. The city further agrees that it will meet such obligation by the payment of at least $4,000 per each 12-month period ending on September 30 of the calendar years 1958 to 1962, inclusive. The city further agrees that when said sum of $20,000 has been paid therein, it will at all times maintain that amount therein until there is a sufficient amount in the 1957 Bond Redemption Fund and this Reserve Ac- count to redeem and retire all of the Bonds outstanding with accrued in- terest to such date of redemption. In the event there shall be a deficiency in the 1957 Bond Redemption Fund to meet maturing installments of either interest on or principal of and interest on the Bonds outstanding, such deficiency shall be made up from the Reserve Account by the withdrawal of cash therefrom. Any defi- ciency created in the Reserve Account by reason of any such withdrawal shall then be made up from money in the Curren~ ~ater Fund first available after makin~ necessary provision for the payments into the 1958 Revenue Bond Redemption Fund and the 1957 Bond Redemption Fund. All money in the Reserve Account may be kept in cash or invested in direct obligations of the United States having a guaranteed redeption price or maturing not later than twelve years from date of purchase and in no e- vent maturing later than the last maturity of the Bonds outstanding at the time of purchase. Interest earned on any such investments shall be deposit- ed in and become a part of the 1957 Bond Redemption Fund. Section 9. The corporate authorities of the city hereby declare, in fixing the amounts to 0e paid into the 1957 Bond Redemption Fund and Reserve Account as provided herein, that they have exercised due regard to the cost of maintenance and operation of the Oystem and the amount of the revenue of the System previously pledged for the payment of the principal of and in- terest on the Outstanding Prior Lien Revenue Bonds and Outstanding Parity Revenue Bonds of the city, and have not obligated the city to set aside and pay into said Fund and Account ~ greater amount of the revenue of the Sys- tem than in their Judgment will be available over and above such cost of maintenance and operation and oho charges necessary to pay the principal of and interest on such outstanding bonds. Section lO~ The City of Bremerton hereby covenants with the owner and holder of each Of the Bonds as follows: The provisions of Sections 6, l0 and ll of Ordinance No. 2124 of the city are hereby incorporated in this ordinace as if set forth herein and by such incorporation are made applicable to the Bonds and shall inure to the benefit of the holders from time to time of the Bonds, and are hereby ORDINANCE NO. 2225 (CON'T} made a part of this ordinance with respect to the Bonds as though fully set forth herein. The city hereby reserves the right to issue additional or refunding revenue bonds on a parity with the Bonds upon the same terms, conditions and requirements and with the same limitations and restrictions as pro- vided in Section ll of Ordinance No. 2124 for the issuance of additional or refunding revenue bonds on a parity with the Outstanding Parity Rev- enue Bonds. Section ll. The Bonds shall be sold at public sale, the time, date and p~ace of which is hereby fixed at ll:00 o'clock A.M. on May 22, 1957, at the Council Chambers in ~he City Hall in Bremerton, Washington. The City Clerk is hereby authorized and directed to cause a notice of sale of the Bonds to be published at least once in the official city newspaper and at least once a week for two consecutive weeks in the Seattle Daily Journal of Commerce, the first of each such publications to be at least ten days prior to the date of such sale. Upon the sale of the Bonds the proper city officials are hereby auth- orized and directed to do everything necessary for the prompt execution and issuance o£ the Bonds and the delivery of the same to the purchaser thereof, and for the proper use and application of the funds derived from such sale. . Section i2. This ordinance is declared to be one necessary for the immediate preservation of the h alth, welfare and property of the City of Bremerton and its inhabitants, and in order to construct the improve- ments provided for herein under the best weather condftions it ishereby found necessary for the best interest and operation of the Water Depart- ment of the city that the same become effective immediately. ~'herefore, an emergency is hereby declared to exist, and this ordinance is hereby declared to he in full force and effect from and after its passage, ap- proval and publication as provided by law. PASSED UNANIMOUSLY by the Council of the City of Bremerton, Washing- ton, at a regular recessed meeting thereof, signed by the Mayor, and at- tested by the City Clerk in authentication of such passage this 28th day of April, 1~57. CITY OF BREMERTON, WASHINGTON ATTEST: By ~ yor City cler~ APPROVED AS TO FORM: s/ Richard Thorgrimson , Partner f PREST0~, THO[IGRIMSON & HOROWITZ Special Bond Counsel for the City