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Home My WebLink AboutO-0608 - Provides for issuance of water and sewer revenue bonds (Special).'._t "l ~•L.'" CITY OF MARYSVILLE,WASHINGTON ORDINANCE NO.(PO <6' AN ORDINANCE specifying and adopting a system or plan of additions to and betterments and extensions of the waterworks utility of the City of Marysville,Washington,including the sewerage system as a part thereof;declar- ing the estimated cost thereof as nearly as may be;providing for the issuance and sale of not to exceed $160,000.00 par value of water and sewer revenue bonds in one or more series to obtain the funds with which to pay the cost of said system or plan;creating a special fund to provide for the payment of said bonds;and authorizing and directing the City offfcraIs to proceed with the improvement. -WHEREAS,the City of Marysville I by Ordinance No.385 I passed September 2 I 1952,combined the sewerage system of the City with all additions and improvements thereto with the waterworks utility of the City I and the sewerage system at all times since has been considered a part of and belonging to the waterworks utility of the City I and ,the words "waterworks utility of the City"shall hereinafter mean the combined sewerage system and water system of the City I together with all additions thereto and betterments and extensions thereof hereafter made I NOW I THEREFORE, THE CITY COUNCIL OF THE CITY OF MARYSVILLE I WASHINGTON I DO ORDAIN as follows: Section 1.The waterworks utility of the City is in such condi- tion that the public health,safety and welfare require the making of certain additions thereto and betterments and extensions thereof as hereinafter specifically set forth. Section 2.The gross revenues and benefits to be derived from the operation and maintenance of the waterworks utility of the City and the additions,extensions and betterments thereto herein provided for at the rates to be charged for water and sanitary sewage disposal service on the entire utility Will,in the judgment of the City Council,be more thb.n sufficient to meet all expenses of operation and maintenance thereof and to permit the setting aside into a special fund out of the gross revenues of the waterworks utility of the City of sufficient amounts to pay the interest on the bonds herein authorized to be issued and on the presently outstanding "Water Revenue Bonds,1952,"(Series A and Series B),"Water Revenue Bonds,1955,II "Water and Sewer Revenue Bonds,1959,II "Water and Sewer Revenue Bonds,1963,""Water and Sewer Revenue Bonds, 1965,"and "Water and Sewer Revenue Bonds,1967,"as such interest becomes due and payable,and to pay and redeem all of said bonds at maturity. Section 3.The City of Marysville hereby specifies and adopts a system or plan of additions to and betterments and extensions of the waterworks utility of the City to consist of the following: 1.There shall be constructed and installed approximately 240 feet of 8-inch sewer pipe,1125 feet of 14-inch sewer pipe,4370 feet of 24-inch sewer pipe with appurtenances from Second and Liberty Avenue to approximately the intersection of 56th Street N.E.and the Marysville Sunnyside Road. 2.There shall also be constructed a pumping station along the above line in the vicinity of Allen Creek. The City Council may modify the details of the foregoing system or plan where,in its judgment,it seems advisable,provided such modifi- cations do not substantially alter the purposes hereinbefore set forth. Section 4.The life of the foregoing additions,betterments and extensions is hereby declared to be at least thirty years. - 2 - Section 5.The estimated cost of the acquisition,construction and installation of the above-described additions and betterments to the waterworks utility of the City is hereby declared to be,as nearly as may be,the sum of $160,000.00. Section 6.The cost of acquiring,constructing and making the foregoing additions to and betterments and extensions of the water- works utility of the City shall be paid from the proceeds received from the issuance and sale of water and sewer revenue bonds in the amount of not to exceed $160,000.00.It is the intention of the City to acquire and construct and complete such portions of the foregoing system or plan of additions to and betterments and extensions of the waterworks utility of the City as from time to time the City Council shall deem advisable.The bonds shall be issued in one or more series at such times as the City Council shall deem advisable.The bonds shall be entitled "Water and Sewer Revenue Bonds,1968,"with series designations following,if issued in series.The bonds shall bear interest at a rate or rates not to exceed the maximum permitted by law,payable semiannually,and shall be numbered from "one"upward,consecutively,within each series as issued. The bonds shall be issued in such series;shall be in such denominations and form;shall bear such date or dates and interest rate or rates;shall be payable at such place or places;shall mature serially in accordance with such schedule,beginning not earlier than one year after date of issuance and ending not later than thirty years thereafter or shall be term bonds;shall have such option of payment prior to maturity;shall guarantee such coverage and collection of rates;shall provide for such additional funds and accounts;and shall contain and be subject to such provisions or covenants as shall be hereafter provided by ordinance. Section 7.The bonds shall be payable solely out of the special fund herein created and shall be a valid claim of the holder thereof - 3 - only as against such special fund,and the amount of the revenues of the waterworks utility of the City pledged to such special fund,and shall not be a general obligation of the City of Marysville,Washington. Section 8.There shall be and hereby is created and estab- lished in the office of the Treasurer of the City of Marysville a special fund to be known as "Water and Sewe_r Reve nueBond Fund,1968,"which fund is to be drawn upon for the sale purpose of paying the principal of and interest on the bonds.From and after the date thereof and so long thereafter as bonds are outstanding against such fund,the City Treas- urer shall set aside and pay into said fund out of the gross revenues of the waterworks utility of the City a fixed amount without regard to any fixed proportion,namely,an amount sufficient to pay the principal of and interest on the bonds as they respectively become due and to create such surplus and reserve,if any,that may hereafter be prescribed by ordinance. The gross revenues from the said waterworks utility are hereby pledged to such payment and the bonds herein authorized shall constitute a charge or lien upon such revenues prior and superior to any other charges whatso- ever,excluding charges for maintenance and operation,provided,however, that if the conditions required to be met as set forth in Section 19 of Ordinance No.384,passed July 14,1952,and in Section B of Ordinance No.595,passed July 10,1967,shall be met at the time of the issuance of the bonds herein authorized the charge or lien upon such gross revenues for the bonds herein authorized shall be on a parity with the charge or lien upon such gross revenues for the outstanding "Water Revenue Bonds,1952," (Series A and Series B),"Water and Sewer Revenue Bonds,1955,""Water and Sewer Revenue Bonds,1959,""Water and Sewer Revenue Bonds,1963," "Water and Sewer Revenue Bonds,1965,"and "Water and Sewer Revenue Bonds,1967."Otherwise,the charge or lien upon such gross revenues for the bonds herein authorized shall be subordinate and inferior to the prior charge or lien upon such gross revenues for said presently outstanding bonds. - 4 - Section 9.The City Council and corporate authorities of the City of Marysville hereby declare that in creating the said special fund and in fixing the amounts to be paid into it as set forth herein they have exercised due regard to the cost of operation and maintenance of the system of sewerage of the City and the debt service requirements of the outstanding "Water Revenue Bonds,1952 ,"(Series A and Series Bl, "Water and Sewer Revenue Bonds,1955/""Water and Sewer Revenue Bonds,1959 I""Water and Sewer Revenue Bonds,1963,""Water and Sewer Revenue Bonds,1965,"and "Water and Sewer Revenue Bonds.1967,"and the City of Marysville has not bound and obligated itself and will not bind and obligate itself to set aside and pay into such special fund a greater amount or proportion of the revenues of the waterworks utility than in the judgment of the City Council will be available over and above such costs of maintenance and operation and debt service requirements of said outstanding bonds,and that no portion of the revenues of the waterworks utility has been previously pledged for any indebtednes s other than said outstanding bonds. Section 10.The proceeds of the sale of the foregoing bonds shall be used for the sale purpose of making additions to and betterments and extensions of the waterworks utility as herein authorized and of paying the cost and expenses connected therewith,and the City of Marysville, through its proper officers and agents,shall proceed with the making of said improvements and the calling of bids therefor in the manner provided by law. Section 11.This ordinance shall be in force from and after its passage and five (5)days following its publication as required by law. - 5 - ....... PASSED by the City Council of the City of Marysville, Washington,and APPROVED by its Mayor at a regular meeting thereof held on the Ll th day of December,1967. Mayor ATTEST: APPROVED AS TO FORM: /;~,tJ)/J~ - 6 -