Loading...
HomeMy WebLinkAboutO-0654 - Amends Ord. 608, addition to waterworks utility (Special).,.-: .-: f\."~r-'\ I Y '- \ CITY OF MARYSVILLE,WASHINGTON ORDINANCE NO.t,5.y AN ORDINANCE amending Ordinance No.608, passed by the City Council and approved by the Mayor on December 11,1967,as amended by Ordinance No.641,passed by the City Council and approved by the Mayor on September 23,1968,relating to the system or plan of additions to and betterments and extensions of the waterworks utility of the City of Marysville,including the sewerage system as a part thereof;providing for the issuance of $500,000.00 par value of "Water and Sewer Revenue Bonds,1969,"for the purpose of ob- taining the funds required to pay the cost of acquiring,constructing and making certain additions to and betterments and extensions of the waterworks utility of the City,includ- ing the sewerage system as a part thereof,as adopted by Ordinance No.608,as amended by Ordinance No.641 and herein further amended; fixing the date,form,maturities,interest rates,covenants and terms of such bonds; creating a special bond redemption fund;and providing for the sale and delivery thereof to Terry Thompson &Co.of Seattle,Washington. WHEREAS,the City of Marysville,by Ordinance No.384, passed the 14th day of July,1952,specified and adopted a system or plan of additions to and betterments and extensions of the waterworks utility of the City,and authorized the issuance and sale of not to exceed $280,000.00 par value of "Water Revenue Bonds,1952,"of which $134,000.00 par value thereof were hereto-. fore issued as "Series A,"$100,000.00 par value thereof as "Series B,"and $46,000.00 par value thereof as "Series C,"and all of said "Series C"bonds have now matured and been paid;and WHEREAS,by Section 19 of said Ordi~ance No.384,the City of Marysville reserved the right to issue additional water revenue bonds or water and sewer revenue bonds in the event that the City should thereafter provide by ordinance for the construc- tion of a system of sewerage or additions,extensions and better- ments to an existing system and provide that the system of sewerage, including all additions,extensions and betterments thereto,shall become a part of the waterworks utility of the City,whkh bonds shall constitute a charge and lien upon the revenues of the water- works utility of the City,including the sewerage system if the same is made a part of the waterworks utility of the City,on a parity with the said "Water Revenue Bonds,1952,"provided the following conditions shall be met and complied with at the time of the issu- ance of such additional bonds: "(a)That all payments required by this ordi- nance and any ordinance hereinafter enacted per- taining to the bonds of this issue shall have been made into the 'Water Revenue Bond Fund,1952'; and "(b)That the revenues of the waterworks util- ity of the City,including the sewerage system in the event that the same is combined with and become a part of the waterworks utility,together with the anticipated revenues to be received from the im- provement to be undertaken in connection with the issuance of such additional bonds,shall be and be deemed sUfficient,after the payment of operation, maintenance costs and taxes,to equal at least 1.4 times the average annual principal and interest re- quirements of the bonds of this issue then outstand- ing and of the additional revenue bonds proposed to be so issued.Such determination of the sufficiency of the revenues shall be made and certified to by an engineer experienced in municipal utilities and ac- ceptable to Terry Thompson";and WHEREAS,the City of Marysville,by Ordinance No.385, passed September 2,1952,combined the sewerage system of the City with all additions and improvements thereto with the waterworks utility of the City,and the sewerage system at all times since o ~has been considered a part of and belonging to the waterworks util- ity of the City,and the words "waterworks utility of the City" shall hereinafter mean the combined sewerage system and water sys- tem of the City,together with all additions thereto and betterments and extensions thereof hereafter made;and WHEREAS,the City of Marysville subsequently issued and sold its "Water and Sewer Revenue Bonds,1955,"dated JUly 1,1955, its "Water and Sewer Revenue Bonds,1957,"dated July 1,1957,and -2- ",. .", its "Water and Sewer Revenue Bonds,1959,"dated July 1,1959,all of said bonds having been issued on a parity of lien with all of the outstanding "Water Revenue Bonds,1952"(Series A,Series Band Series C),and with each other;and WHEREAS,pursuant to Ordinance No.497,passed March 25, 1963,the City issu~d and sold $395,000.00 par value of "Water and Sewer Revenue Bonds,1963,"for the purpose of obtaining the funds required to pay the cost of acquiring,constructing and making cer- tain additions to and betterments and extensions of the waterworks utility of the City as adopted in Ordinance No.494 and to obtain the funds with which to pay,retire and cancel $135,00 ~OO par value of the outstanding "Water and Sewer Revenue Bonds,19 '57,"of the City,which "Water and Sewer Revenue Bonds,1963,"pursuant to Sec- tion 19 of Ordinance No.394 were issued on a parity of lien with the outstanding "Water Revenue Bonds,1952"(Series A,Series Band Series C),the "Water and Sewer Revenue Bonds,1955,"and the "Water and Sewer Revenue Bonds,1959";and WHEREAS,pursuant to Ordinance No.543,passed July 12, 1965,the City issued and sold $410,000.00 par value of "Water and Sewer Revenue Bonds,1965,"for the purpose of obtaining a part of the funds required to pay the cost of acquiring,constructing and making certain additions to and betterments and extensions of the waterworks utility of the City,as adopted in Ordinance No.543, which "Water and Sewer Revenue Bonds,1965,"pursuant to Section 19 of Ordinance No.394,were issued on a parity of lien with the out- standing "Water Revenue Bonds,1952"(Series A and Series B),the "Water and Sewer Revenue Bonds,1955,"the "Water and Sewer Revenue Bonds,1959,"and the "Water and Sewer Revenue Bonds,1963";and WHEREAS,pursuant to Ordinance No.595,passed JUly 10, 1967,the City issued and sold $425,000.00 par value of "Water and Sewer Revenue Bonds,1967,"for the purpose of obtaining the funds required to pay the cost of acquiring,constructing and making -3- certain additions to and betterments and extensions of the water- works utility of the City,as adopted in Ordinance No.581,as amended by Ordinance No.586,which "Water and Sewer Revenue Bonds, 1967,"pursuant to Section 19 of Ordinance No.394,were issued on a parity of lien with the outstanding "Water .Revenue Bonds,1952" (Series A and Series B),the "Water and Sewer Revenue Bonds,1955," the "Water and Sewer Revenue Bonds,1959,"the "Water and Sewer Revenue Bonds,1963,"and the "Water and Sewer Revenue Bonds,1965"; and WHEREAS,the City Council has determined to add certain additional improvements to the system or plan of additions to and betterments and extensions of the waterworks utility of the City, as adopted by Ordinance No.608,as amended by Ordinance No.641, and to proceed with the carrying out of such system or plan of addi~ tions to and betterments and extensions of the waterworks utility of the City,as added to,and to provide the funds necessary to pay the cost thereof,it is necessary to issue and sell $500,000.00 par value of water and sewer revenue bonds of the City; WHEREAS,the City Council hereby finds and declares that all payments required by Ordinances Nos.384,415,455,543 and 595 pertaining to the outstanding "Water Revenue Bonds,195 2'(Series A and Series B of which are presently outstanding),the outstanding "Water and Sewer Revenue Bonds,1955,"the outstanding "Water and Sewer Revenue Bonds,1959,"the outstanding "Water and 'Sewer Revenue Bonds,1963,"the outstanding "Water and Sewer Revenue Bonds,1965," and the outstanding "Water and Sewer Revenue Bonds,19 OJ,"have been made into the "Water Revenue Bond Fund,1952,"the "Water and Sewer Revenue Bond Fund,1955,"the "Water and Sewer Revenue Bond Fund, 1959,"the "Water and Sewer Revenue Bond Fund,1963,"the "Water and Sewer Revenue Bond Fund,1965,"and.the "Water and Sewer Revenue Bond Fund,1967,"respectively,and that Larry Wade of Hanunond,Collier, Wade and Associates,consulting engineers,a professional engineer -4- -, experienced in municipal utilities and acceptable to Terry Thompson, has certified that said revenues are sufficient to meet said 1.4 coverage requirement set forth in Section 19 of Ordinance No.384 as evidenced by his certificate to such effect on file with the City Clerk;NOW,THEREFORE, THE CITY COUNCIL OF THE CITY OF MARYSVILLE,WASHINGTON, DO ORDAIN as follows: Section 1.Section 3 of Ordinance No.608,passed by the City Council and approved by the Mayor on December 11,1967,as amended by Ordinance No.641,passed by the City Council and approved by the Mayor on September 23,1968,is amended to read as follows: "Section 3.The City of Marysville hereby specifies and adopts a system or plan of additions to and betterments and exten- sions of the waterworks utility of the City to consist of the follow- ing: "1.There shall be constructed and installed approximately 240 feet of 8-inch sewer pipe,1125 feet of l4-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. "3.There shall be constructed and installed 10,900 lineal feet of 18,15 and 12-inch sanitary sewer main with appurtenances from 84th Street N.E.and State Avenue to 96th Street N.E.and 61st Avenue N.E. "4.There shall be compiled a comprehensive water distri- bution and supply report. "5.There shall be drilled two new test wells at sites to be determined in the future. "6.There shall be conducted a water supply investigation at the Stillaguamish River. -5- "7.There shall be constructed and installed approximately 1,300 lineal feet of 12-inch water main with appurtenances along the Shoultes Road from 108th Street N.E.to 103rdStreet N.E. "8.There shall be constructed a surface storage reservoir of six million gallons capacity or more. "9.There shall be renovated the following elevated storage tanks: (a)Fifth and State;and (b)First and Delta "The City Council may modify the details of the foregoing system or plan where,in its judgment,it seems advisable,provided such modifications do not substantially alter the purposes herein- before set forth." section 2.Section 5 of Ordinance No.608,as amended by Ordinance No.641,is amended to read as follows: ""Section 5.The estimated cost of the acquisition,con- struction and installation of the above-described additions and better- ments to the waterworks utility of the City is hereby declared to be, as nearly as may be,the sum of $500,000.00." Section 3.Section 6 of Ordinance No.608,as amended by Ordinance No.641,is amended to read as follows: "Section 6.The cost of acquiring,constructing and making the foregoing additions to and betterments and extensions of the waterworks utility of the City shall be paid from the proceeds re- ceived from the issuance and sale of water and sewer revenue bonds in the amount of not to exceed $500,000.00.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 exten- sions 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 ad- visable.The bonds shall be entitled 'Water and Sewer Revenue Bonds, 1969,'with series designations following,if issued in series.The -6- bonds shall bear interest at a rate or rates not to exceed the maxi- mum 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 there- after 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 con- tain and be subject to such provisions or covenants as shall be here- after provided by ordinance." Section 4.For the purpose of providing the funds with which to pay the cost of carrying out the system or plan of additions to and betterments and extensions of the waterworks utility of the City of Marysville,including the sewerage system as a part thereof (said combined utilities and all additions to and betterments and extensions thereof being hereinafter referred to as the "waterworks utility of the City"),as specified and adopted in Ordinance No.608, as amended by Ordinance No.641 and herein further amended,there shall be issued and sold $500,000.00 par value of "Water and Sewer Revenue Bonds,1969"(hereinafter called the "Bonds").The Bonds shall be in denominations of $5,000.00,shall be numbered from 1 to 100,inclusive,shall be dated January 1,1969,and shall bear inter- est at the rates hereinafter set forth,payable semiannually on the first days of January and July of each year,interest to maturity to be evidenced by coupons to be attached to the Bonds with full obliga- tion on the part of the City to pay interest at the bond rate or rates from and after the bond maturity dates until the Bonds with interest are paid in full.Both principal of and interest on the Bonds shall be payable solely out of the special fund created by Ordinance No. -7- 608 and therein designated as the "Water and Sewer Revenue Bond Fund, 1968,"which designation is hereby changed to "Water and Sewer Revenue Bond Fund,1969"(hereinafter called the "Bond Fund"),and the Bonds shall be a valid claim of the holder thereof only as against the Bond Fund and the fixed amount of the revenues of the waterworks utility of the City pledged to such fund,and shall not be a general obliga- tion of the City. The Bonds shall mature and shall bear interest in accord- ance with the following schedule,to-wit: Bond Numbers (Inclusi ve)Amounts Interest Rates Maturities 1 to 3 to 5 to 7 to 9 to 11 to 13 to 15 to 17 to 19 to 22 to 25 to 28 to 31 to 34 to 37 to 40 to 43 to 46 to 50 to 54 to 58 to 62 to 66 to 71 to 76 to 81 to 86 to 91 to 96 to 2 4 6 8 10 12 14 16 18 21 24 27 30 33 36 39 42 45 49 53 57 61 65 70 75 80 85 90 95 100 $10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 20,000 20,000 20,000 20,000 20,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 5-3/4% 5-3/4% 5-3/4% 5-3/4% 5-3/4% 5-3/4% 5-3/4% 5-3/4% 5-3/4% 5-3/4% 5-7/8% 5-7/8% 5-7/8% 5-7/8% 5-7/8% 5-7/8% 5-7/8% 5-7/8% 5-7/8% 5-7/8% 5-7/8% 5-7/8% 5-7/8% 5-7/8% 5-7/8% 5-7/8% 5-7/8% 5-7/8% 5-7/8% 5-7/8% January 1,1970 January 1,1971 January 1,1972 January 1,1973 January 1,1974 January 1,1975 January 1,1976 January 1,1977 January 1,1978 January 1,1979 January 1,1980 January 1,1981 January 1,1982 January 1,1983 January 1,1984 January 1,1985 January 1,1986 January 1,1987 January 1,1988 January 1,1989 January 1,1990 January 1,1991 January 1,1992 January 1,1993 January 1,1994 January 1,1995 January 1,1996 January 1,1997 January 1,1998 January 1,1999 Section 5.The City of Marysville reserves the right to redeem the Bonds as a whole,or in part in inverse numerical order, for any purpose and from any source on January 1,1979,or on any semiannual interest payment date thereafter,at par plus accrued in- terest to date of redemption. -8- Notice of such call for redemption shall be published once not less than 30 nor more than 45 days prior to the call date in the official newspaper of the City and shall also be mailed to Terry Thompson &Co.,Northern Life Tower,Seattle,Washington, or its successors,within the same period.Interest on any Bonds so called for redemption shall cease on the date fixed for such redemption upon payment of the redemption price into the Bond Fund. Section 6.The Bond Fund created and established by Ordinance No.608 is hereby divided into two accounts,namely,a "Principal and Interest Account"and a "Reserve Account."So long as any Bonds are outstanding against the Bond Fund,the Treasurer of the City of Marysville shall set aside and pay into the Bond Fund,after the payment of the expenses of maintenance and operation of the waterworks utility of the City,out of the gross revenues of said utility a fixed amount,without regard to any fixed proportion, as follows: (a)Into the "Principal and Interest Account," monthly,on or before the 20th day of each month beginning with the month of January,1969,and continuing thereafter,1/6th of the next ensuing six months'interest requirements on the Bonds and 1/12th of the next ensuing twelve months' requirements for principal on the Bonds,until the Bonds,both principal and interest,are fully paid; (b)Into the "Reserve Account,"monthly,on or before the first day of each month,beginning with the month of February,1969,not less than the sum of $650.00,until a total reserve amount of $39,000.00 shall be accumulated therein by no later than January 1,1974. The "Reserve Account"may be accumulated from any other moneys which the City of Marysville may have available for such pur- pose,in addition to using such revenues therefor.The "Reserve Account"shall,except for withdrawals therefrom as authorized herein,after the total required reserve amount has been accumulated therein be maintained in such amount at all times so long as any of the Bonds is outstanding,PROVIDED,HOWEVER,that when the total -9- amount in the Bond Fund shall equal the total amount of the prin- cipal of and interest on all outstanding Bonds to the last maturity thereof,no further payments need be made into the Bond Fund. In the event that there shall be a deficiency in the "Principal and Interest Account"in the Bond Fund to meet maturing installments of either principal or interest,as the case may be, such deficiency shall then be made up from the moneys from the "Re- serve Account"by the withdrawal of cash therefrom for that purpose. Any deficiency created in the "Reserve Account"by reason of any such withdrawal shall then be made up from the moneys from the rev- enues of the waterworks utility of the City first available after making necessary provisions for the required payment into the "Prin- cipal and Interest Account."The money in the "Reserve Account" shall otherwise be held intact and may be applied against the last outstanding Bonds. All moneys in the "Reserve Account,"above provided for, may be kept on deposit in the.official bank depository of the City of Marysville or may be invested by the City Treasurer in savings or time accounts in banks,trust companies and mutual savings banks, which are doing business in this State,up to the amount of insur- ance afforded such accounts by the Federal Deposit Insurance Corpora- tion,or in any short term United States Government securities maturing not later than one month prior to the final maturity date of the last outstanding Bonds.Interest earned on any such invest- ment or on such bank deposit shall be deposited in and become a part of the "Reserve Account"until the total required reserve amount has been accumulated therein,after which such interest shall be de- posi ted in the "Principal and Interest Account." Section 7.The gross revenues from the waterworks utility of the City are hereby pledged to such payments and the Bonds shall constitute a lien and charge upon such revenues prior and superior to any other charges whatsoever,excluding charges for maintenance -10- and operation of the waterworks utility of the City,except that the lien and charge upon said revenues for the Bonds shall be on a parity with the lien and charge upon such revenues for the out- standing "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 Rev- enue Bonds,1965,""Water and Sewer Revenue Bonds,1967,"and any water and sewer revenue bonds hereafter issued on a parity with said outstanding bonds,in accordance with the provisions of Section 19 of Ordinance No.384 and Section 11 hereof. If the City shall fail to set aside and pay into the Bond Fund the amounts which it has obligated itself by this Ordinance to set aside and pay therein,the holder of any Bond may bring suit against the City to compel it to do so. Section 8.The City Council and corporate authorities of the City of Marysville hereby declare that in creating the Bond Fund and in fixing the amounts to be paid into the same,as aforesaid, they have exercised due regard for the cost of operation and mainten- ance of the waterworks utility of the City and the debt service re- quirements of the presently 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,"and the City has not bound and obligated itself to set aside and pay into the Bond Fund a greater amount or proportion of the revenues of the waterworks utility of the City 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 waterworks util- ity of the City has been previously pledged for any indebtedness other than for the presently outstanding bonds referred to above. -11- Section 9.The City hereby covenants and agrees with the owner and holder of each Bond at any time outstanding,as follows: (a)That it will establish,maintain and col- lect such rates and charges for water and sanitary sewage disposal service as long as any "Water Rev- enue 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,19 ffi," "Water and Sewer Revenue Bonds,1967,"and the Bonds are outstanding,as will make available for the payment of the principal of and interest on all such bonds as the same shall accrue,an amount equivalent to at least 1.4 times the average an- nual debt service,both principal and interest,of said "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 Rev- enue Bonds,1965,""Water and Sewer Revenue Bonds, 1967,"and the Bonds,after deducting the cost of maintenance,operation and taxes from the revenues of the waterworks utility of the City. (b)That it will at all times maintain and keep the waterworks utility of the City in good repair, working order and condition,and also will at all times operate such utility and the business in con- nection therewith in an efficient manner and at a reasonable cost. (c)That it will not sell,lease,mortgage or in any manner encumber or dispose of all the prop- erty of the waterworks utility of the City unless provision is made for payment into the Bond Fund of a sum sufficient to pay the principal of and inter- est on all Bonds at any time outstanding,and that it will not sell,lease,mortgage,or in any manner encumber or dispose of any part of the property of said waterworks utility of the City that is used, useful and material to the operation thereof,or for payment into the Bond Fund of the total amount of revenue received which shall not be less than an amount which shall bear the same ratio to the amount of outstanding Bonds as the revenue avail- able for debt service for such outstanding Bonds for the twelve months preceding such sale,lease, encumbrance or disposal from the portion of the utility sold,leased,encumbered or disposed of bears to the revenue available for debt service for such Bonds from the entire utility for the same period.Any such moneys so paid into the Bond Fund shall be used to retire such outstanding Bonds at the earliest possible date. (d)That it will while any of the Bonds remain outstanding keep proper and separate accounts and records in which complete and separate entries shall be made of all transactions relating to its waterworks utility,and it will furnish the orig- inal purchaser or purchasers of the Bonds or any subsequent holder or holders thereof,at the written -12- ing form: request of such holder or holders,complete operat- ing and income statement of said utility in reason- able detail covering any calendar year not more than ninety days after the close of such calendar year and it will grant any holder or holders of at least twenty-five percent of the outstanding Bonds the right at all reasonable times to inspect the entire waterworks utility of the City and all rec- ords,accounts and data of the City relating thereto. Upon request of any holder of any of said Bonds, it will also furnish to such holder a copy of the most recently completed audit of the City's accounts by the State Auditor of Washington. (e)That it will not furnish water or sanitary sewage disposal service to any customer whatsoever free of charge and will promptly take legal action to enforce collection of all delinquent accounts. (f)That it will carry the types of insurance on its waterworks utility properties in the amounts normally carried by private water and sewer com- panies engaged in the operation of water and sewer- age systems,and the cost of such insurance shall be considered a part of operating and maintaining said utility.If,as,and when,the United States of America or some agency thereof shall provide for war risk insurance,the City further agrees to take out and maintain such insurance on all or such portions of said system on which such war risk in- surance may be written in an amount or amounts to cover adequately the value thereof. (g)That it will pay all costs of maintenance and operation of the waterworks utility of the City and the debt service requirements for the outstand- ing "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," and otherwise meet the obligations of the City as herein set forth. Section 10.The Bonds shall be in sUbstantially the follow- No.$5,000.00 UNITED STATES OF AMERICA STATE OF WASHINGTON CITY OF MARYSVILLE WATER AND SEWER REVENUE BOND,1969 % KNOW ALL MEN BY THESE PRESENTS:That the City of Marysville,Washington,for value received, -13- promises to pay to bearer on the FIRST DAY OF JANUARY, 19 ,the principal sum of FIVE THOUSAND DOLLARS together with interest thereon at the rate of PERCENT _______%)per annum,payable semiannually on January 1 and July 1 of each year,upon presenta- tion and surrender of the attached interest cou- pons as they severally mature up to the bond maturity date and with full obligation on the part of the City to pay interest at the same rate from and after the bond maturity date until this bond with interest is paid in full,or funds are available in the "Water and Sewer Revenue Bond Fund,1969"(hereinafter called the "Bond Fund"),for payment in full.Both principal of and interest on this bond are payable in lawful money of the United States of America at the of- fice of the Treasurer of the City of Marysville, Washington,solely out of the special fund cre- ated by Ordinance No.608 and referred to herein as the "Bond Fund,"into which fund the City of Marysville hereby irrevocably binds itself to pay certain fixed amounts out of the gross rev- enues of the waterworks utility,including the sanitary sewerage system as a part thereof,now belonging to or which may hereafter belong to the City,including all additions,extensions and betterments thereof now or at any time made or constructed,without regard to any fixed pro- portion,namely,amounts sufficient to pay the principal of 'and interest on this issue of bonds as they respectively become due and to accumulate a reserve,all at the times and in the manner set forth in Ordinance No. The gross revenues from the waterworks utility of the City are hereby pledged to such payments and the bonds shall constitute a lien and charge upon such revenues prior and superior to any other charges whatsoever,excluding charges for mainten- ance and operation of the waterworks utility of the City,except that the lien and charge upon said revenues for the bonds shall be on a parity with the lien and charge upon such 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,""Water and Sewer Revenue Bonds,1967,"and any water and sewer revenue bonds hereafter issued on a parity with said outstanding bonds in accordance with the provisions of Section 19 of Ordinance No.384 and Section 11 of Ordinance No. This bond is one of a total issue of $500,000.00 par value of bonds,all of like date,tenor and effect,except as to interest rates and maturities, all payable from the Bond Fund and all issued by the City under and in pursuance of the laws of the -14- State of Washington and Ordinance No.608,as amended by Ordinance No.641,and Ordinance No. ,for the purpose of providing the funds to pay the cost of making certain additions to and betterments and extensions of the waterworks utility of the City,including the sanitary sewerage system as a part thereof. The City of Marysville has reserved the right to redeem the bonds as a whole,or in part in inverse numerical order,for any purpose and from and source on January 1,1979,or on an semiannual interest payment date thereafter,at par plus ac- crued interest to date of redemption. Notice of such call for redemption shall be published once not less than thirty nor more than forty-five days prior to the call date in the official newspaper of the City,and shall also be mailed to Terry Thompson &Co.,Northern Life Tower,Seattle,Washington,or its successors, within the same period.Interest on any bonds so called for redemption shall cease on the date fixed for such redemption upon payment of the re- demption price into the Bond Fund. The City of Marysville hereby covenants and agrees with the holders of each and everyone of the bonds of this issue to fully carry out all covenants and meet all obligations of the City, as set forth in Ordinance No.,to which ordi- nance reference is hereby made-as-more fully des- cribing the covenants with and rights of holders of bonds of this issue. It is hereby certified and declared that the bonds of this issue are issued pursuant to and in strict compliance with the constitution and the laws of the State of Washington and the ordinances of the City of Marysville and that all acts,conditions and things required to be done precedent to and in the issuance of this bond have happened,have been done and have been performed as required by law. IN WITNESS WHEREOF,the City of Marysville, Washington,has caused this bond to be signed by the facsimile signature of the Mayor and at- tested by the manual signature of the Clerk and the corporate seal of the City to be affixed and the interest coupons attached to be signed with the facsimile signatures of such officials this first day of January,1969. CITY OF MARYSVILLE,WASHINGTON By (facsimile signature) Mayor ATTEST: City Clerk -15- The interest coupons attached to the Bonds shall be in substantially the following form: Coupon No. $---- On the FIRST DAY OF (JANUARY)(JULY),19 , the CITY OF MARYSVILLE,WASHINGTON,upon pres- entation and surrender of this coupon,will pay to bearer at the office of the City Treas- urer the amount shown hereon in lawful money of the united States of America from the special fund of said City,known as the "Water and Sewer Revenue Bond Fund,1969,"said sum being six months'interest then due on its "Water and Sewer Revenue Bond,1969,"dated January 1, 1969,and numbered CITY OF MARYSVILLE,WASHINGTON By (facsimile signature) Mayor ATTEST: (facsimile signature) City Clerk The Bonds shall be printed on lithographed forms,shall be signed by the facsimile signature of the Mayor and attested by the manual signature of the Clerk and shall have the seal of the City of Marysville affixed thereto and the interest coupons shall bear the facsimile signatures of the Mayor and the Clerk. Section 11.The City of Marysville reserves the right to issue additional water and sewer revenue bonds which will constitute a lien and charge upon the gross revenues of the waterworks utility of the City on a parity with 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,""Water and Sewer Revenue Bonds,1967,"and the Bonds,provided the conditions set forth in Section 19 of Ordinance No.384 are met and complied with at the time of the issuance of such additional water and sewer revenue bonds while any of said outstanding bonds are outstanding,wh ~h Section is by this reference incorporated herein and made a part hereof and -16- :-... shall be applicable after the payment and retirement of said out- standing "Water Revenue Bonds,1952"(Series A and Series B). Section 12.The principal proceeds received from the sale of the Bonds shall be deposited in the "Water and Sewer Con- struction Fund"of the City and used for the purpose of carrying out the system or plan of additions to and betterments and exten- sions of the waterworks utility of the City,as specified and adopted in Ordinance No.608,as amended by Ordinance No.641 and herein amended.The accrued interest received shall be deposited in the Bond Fund. Section 13.Terry Thompson &Co.of Seattle,Washington, heretofore offered to purchase the Bonds at a price of $98.00 per each $100.00 par value thereof plus accrued interest from the date of issuance to the date of delivery of the Bonds,the purchaser to furnish at its expense the printed Bonds for execution by the City officials and the City to furnish at its expense the unqualified approving legal opinion covering the Bonds of Messrs.Roberts, Shefelman,Lawrence,Gay &Moch,municipal bond counsel of Seattle, Washington.The City Council being of the opinion that no better price could be obtained for the Bonds and that it was in the best interests of the City to accept such offer,duly accepted the same on December 9,1968,which acceptance is hereby ratified and con~ firmed.The Bonds shall therefore immediately upon execution be delivered to Terry Thompson &Co.in Seattle,Washington,upon such purchaser paying for the same in accordance with its offer. Section 14.This Ordinance shall take effect from and after its passage and approval and five days following its publica- tion as required by law. -17- •f,'; PASSED by the City Council of the City of Marysville, Washington,at a regular meeting thereof and APPROVED,by the Mayor this 23rd day of December,1968. (8)Arthur A.Duborko, Mayor ~Clerk ATTEST: ,d~~~ FORM APPROVED:M ~a ~UuCltyAttorney -18-