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HomeMy WebLinkAbout0742 AN ORDINANCE specifying and adopting a system or plan, for the acquisition, either by construction, conde~muation or purchase, by the city of Brmerton o~ an electric light and power plant and system, within and without its corporate limits for the purpose of furnishing the said city and the inhabitants thereof, and any other persons, with an ample supply of electricity, light and power for lighting, heating, fuel and power purposes, public and private; declaring the esti~mted cost thereof as near as may be, at ~250,000, creating a special fund for the sole purpose of defraying the cost of acquiring, Gondemning or purchasing or constructing such plant, providing for the issuance and sale of bonds payable only out of such special fund and submitting the same to the qualified voters of said city for ratification or rejection, at a special election to be held in said city on the 31st day of 0ctoher, 1921. The City Council of the City of Bremerton do ordain as follows: Section 1. The City of Bremerton specifies and adopts the following Dian and system for the acquisition by the City of Bremerton of an electric lighting plant and system within and without its corporate limits for the purpose of furnishing said city and the inhabitants thereof with an ample supply of electricity, and other means of electric power and facilities for lighting, heating, fuel and power purposes; public and private; together with the right to handle and sell or lease any meters, lamps, motors, transformers and equipment or accessories of any kind, necessary and convenient for the use, distribution and sale thereof; and to purchase such electric- ity or power from others within or without the city for said purpose, and for fur- nishing its surplus supply, if any, to any other persons within or without the city, in so far as permitted so to do by the laws of the state of Washington. That the City of Bremerton shall acquire by purchase, condemnation, or by enforc- ed specific performance of the option of the said City of Bremerton to buy, under the terms of Ordinance No. 31, of the City of Bremerton, the present existing electric light and power plant, as now owned and operated by the North Pacific Public Service Co., under said ordinance, No. 31 of the City of Bremerton, or ordinances amendatory thereof or supplemental thereto together with such connecting wires, conveyors, transformers and other equipment as may be necessary and used as a part of the said present existing system, to connect same with a reliable supply of electricity for the uses hereinbefore specified, including all of the necessary property, real, personal or mixed, used and owned by the owners of said electric lighting system as a part of the same, or as incidental thereto; at an estimated cost, as near as may be, of ~250,000.00; or the said City of Bremerton, in the discretion of its City Council, shall construct a complete new electric lighting and power system substan- tially according to the plans of the present existing system, and in substantial duplication thereof, of like capacity and to consist of lines, poles, conduits, wires, transformers, fixtures, and accessories of every kind, necessary to supply the said City of Bremerton, its inhabitants and any other persons with an ample supply of electric current for any and all purposes, and to charge and collect therefor, such rates as may be proper, and to sell and dispose of any surplus supply, to any persons without the said City of Bremerton, in as far as permitted so to do by law, and to suppl~ and sell all fixtures, equipment and accessories, and to install same for use in all buildings, residences and elsewhere in the said City of Bremerton, and to operate said plant in all respects as a public municipal utility, at an estimated cost, as near as~may be, of ~250,000. Sec. 2. For the purpose of defraying the cost of acquiring, or constructing said lighting system and plant, there is hereby created in the treasury a special fund to be known as the "Bremerton Light Fund," and bonds in the sum of Two Hundred and Fifty Thousand [$250,000) Dollars, or so much thereof as may be necessary to acquire or construct said plant and system, shall be issued and sold which said bonds and interest thereon shall be payable only out of said special fund; shall bear interest not exceeding six per cent. per annum, payable semi-annually ~ snd shall mature serially in the order of their numbers, lowest n~umbers first, approximately as follows: Five per cent. of the total issue of said bonds shall mature six years after date thereof. Five per cent. of the total issue of said bonds shall mature seven years after date thereof. Five per cent. of the total issue of said bonds shall mature eight years after date thereof. Five per cent of the to~l issue of said bonds shall mature nine years · after date thereof. Five per cent of the total issue of said bonds shall mature ten years after date thereof. Seven ?er cent. of the total issue of said bonds shall mature eleven years after date thereof. Seven per cent. of the total issue of said bonds shall mature twelve years after date thereof. Seven per cent. of the total issue of said bonds stmll mature thirteen years after date thereof. Seven per cent. of the total issue of said bonds shall mature fourteen years after date thereof. afterS~ ~ot~r~. of the total issue of said bonds shall mature fifteen years ~-~ ....... 01~'DTN'ANO, IF~ NFl._ 74-~,_ Eight per cent. of the total issue of said bonds shall mature sixteen years after date thereof. Eight per cent of the total issue of said bonds shall mature seventeen years after date thereof. Eight per cent of the total issue of said bonds shall mature eighteen years after date thereof. Eight per cent. of the total issue of said bonds sb~ll mature nineteen years after date thereof. Eight per cent. of the total issue of said bonds shall mature Swenty years after date thereof. If the proposition submitted by this ordinance be ratified at the election, the governing body of said city shall provide for the form and details of such bonds, and shall sell the same at not less than par and accrued interest, in such manner as they deem for the best interest of said city and the corporate authorities may provide in any contract for the construction or acquirement of said plant and system, that payment thereof shall be made only in such bonds and at par value there- of; said bonds shall be payable, both principal and interest at the office of the City Treasurer; that the said bonds authorized by this ordinance may, in the dis- cretion of the governing body of said city, be issued in two or more series to be designated as series A, series B, and so forth; but in no case shall the aggregate ambunt of said bonds exceed Two Hundred and Fifty Thousand ~$20~,000) Dollars. Sec. Z. The City of Bremerton to secure and provide for the payment of the interest on said bonds, hereby obligates and binds itself to set aside and pay into the said special fund from the gross revenues of said plant and system, on or be- fore the first day of each month and every calendar month, beginning with the month in which said bonds are dated, a sum equal to one-twelfth of one year's interest on all said bonds outstanding and unpaid; and.said city to secure and provide for the payment an~ principal of said bonds hereby obligates and binds itself to set aside, and pay into the said special fund from the gross revenues of said plant, certain fixed amounts on certain fixed dates as follows: On or before the last day of the twelfth calendar month of the fifth year after the date of said bonds, and on or before the last day of each and every calendar month thereafter, so long as any of said bonds remain outstanding and unpaid, an amount equal to One-twelfth of the principal amount of said bonds next m~turing. It is hereby declared that said city and its governing body in creating said s~ecial fund and in binding and obligating said city to set aside and pay ~nto said fund, certain fixed amounts at certain fixed dates as aforesaid, have exercised due re- gard to the cost of operation and maintenance of said plant, have found that no part or portion of the revenues of sa~d plant has been previously pledged as a fund for any other indebteduess, a~d have not hereby obligated and bound said city to set aside into said special fun& a greater amount of the revenues and profits of said plant than in their Judgment will be available over and above such costs of maintenance and operation. Sec. &. That a special election be held in said city on the Zlst day of October, 1921, at which election there shall be submitted to the qualified voters of said city for ratification or rejection, the proposition set forth in this ordinance, and particularly in sections l, £, and Z .thereof. Notice of this election! shall be given in the manner and form prescribed by law. Every voter at said elec- tion desiring to vote in favor of said proposition, shall vote a ballot containing the following statement thereof: IN FAVOR 0~ the system or plan submitted, specified and adopted by the City of Bremerton, for acquiring by condemnation ¢,r purchase, or by construction, an electric lighting plant a~d system, within and without its corporate limits, for th.e purpose of furnishing said city and the inhabitants thereof, and any other persons, with an ample supply of electricity, and all the products and by-products of an electric lighting plant, including facilities for lighting, heating, fuel and power purposes and all accessories of any kind, necessary and convenient for the use, distribution and sale thereof, at an estimated cost of Two Hundred and Fifty Thousand ($250,000) dollars, and the issuance and sale of bonds in an amount not exceeding said estimated cost, bearing interest at a rate not exceeding six per cent. per annum, payable semi-annually, maturing serially in from six to twenty years from the date thereof payable at the office of the City Treasurer, and payable only out of a special fund, into which said fund, said city binds and obligates itself to set aside and pay from the gross revenues of said plant and system certain fixed amounts at certain fixed dates, sufficient to pay the principal and interest of said bonds, as the same may mature and become payable; all as set i'orth in Ordinance No. 742 of said city and particularly in Sections l, 2 and Z of said ordinanc e. Every voter at said election desiring to vote against said proposition shall vote a ballot containing the following statement, thereof: AGAINST the system or plan submitted, specified and adopted by the City of Bremerton for acquiring by condemuation, or purchase, or by construction, an electric lighting plant or system, Within or without its corporate limits for the purpose of furnishing the said city and the inhabitants thereof, and any other persons, with an ample supply of electricity and all products and by-products of an electric lighting plant, including facilities for lighting, heating, and fuel and power purposes, and all accessories of any kind necessary and convenient for the use, distribution, and sale thereof, at an estimated cost of Two Hundred and Fifty Thousand (~50,O00) Dollars, and the issuance and sale of bonds in an amount not exceeding said estimated cost, bearing interest at a rate not exceeding six per cent. per annum, payable semi-annually, maturing serially in from six to twenty years from the date thereof, payable at the office of the city treasurer and payable only out o£ a special fund into which said fund said city binds and obligates itself to set aside and pay from the gross revenues of the said plant and system, certain, fixed amounts at certain fixed dates, sufficient to pay the principal and interest of said bonds, as the same may mature and become payable; all as set forth in ordinance No. ?~2, of s~id city, and particularly in Sections l, ~ and ~ of said ordinance. Sec. ~. In the event said electric lighting plant and system be acquired or constructed by said city, it shall be operated, conducted and maintained by said city and said city shall have full power to regulate and control the use, dis- tribution and price of all electricity, power accesories or other things furnished thereby, to make additions and betterments thereto, or extensions thereof, and to protect and safe-guard the same, ~ll pursuant to and in compliance with the laws of the State of ~¥ashington, thereto relating. Sec. 8. In the event said proposition hereby submitted be ratified and said city issue all or any part of special fund bonds for the purpose of acquiring or constructing said plant, then all such bonds so issued shall be a first, prior and direct lien against the gross revenues of said plant, and said city hereby express- ly covenants and ~grees with the holder of each and every of such bonds so issued that the lien of all future or other indebtedness which may be created and made payable out of the revenues of such plant, shall be subordinate, inferior and junior to the lien of such bonds. Sec. ~, In the event such bonds or any portion thereof be issued, the City of Bremerton hereby irrevocably binds and obligates itself not to sell, lease, or in any manner dispose of said lighting plant, or any additions or extensions that may be made thereto until all of said bonds so issued, with interezt thereon, shall have been fully paid, ~thout the consent of the holders of such bonds; and the City of Bremerton further covenants and agrees with the holder or holders of each and every of said bonds that it will maintain said plant and system in good condition, and will efficiently operate the same; that it will not reduce the rates or charges for the product of said plant and system so that the gross revenues thereof will be insufficient to ~intain and operate said plant and make payments into said special fund as hereinbefore provided and that if at any given time the gross revenues of said plant and system shall not be sufficient to make such pay- ments and to maintain and operate the said plant and system, that it will increase its rates and charges to such a figure as will make the revenues there of sufficient to make such payments and to maintain and operate the said plant and system and make such payments. Sec. 8. This ordinance shall be in full_ force and effect from five days after its passage, approval and publication. Passed by the City Council and approved by the mayor, this 10th day of October, 1921. Atte~st: ' ' Mayor.