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HomeMy WebLinkAboutO-0668 - Authorizes issuance of water and sewer revenue bonds (Special)CITY OF MARYSVILLE,WASHINGTON ORDINANCE NO.~ AN ORDINANCE specifying and adopting a system or plan of additions to and betterments and ex- tensions of the waterworks utility of the City of Marysville,Washington,including the sewerage system as a part thereof;declaring the estimated cost thereof as nearly as may be;providing for the issuance of $1,250,000.00 par value of "Water and Sewer Revenue Bonds,1969,Issue No ..2,"for the purpose of obtaining a part of the funds re- quired to pay the cost thereof;fixing the date, form,maturities,interest rate,covenants and terms of such bonds;creating a special bond re- demption fund;and providing for the sale and de- livery of such bonds 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 Ordinance 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,which 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 wateL~orks 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 re~enues 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 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 I,1955, its "Water and Sewer Revenue Bonds,1957,"dated July 1,1957,and 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 -2- WHEREAS,pursuant to Ordinance No.497,passed March 25, 1963,the City issued 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 $135,000.00 par value of the outstanding "Water and Sewer Revenue Bonds,1957,"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 $41b,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 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 -3- 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,pursuant to Ordinance No.654,passed December 23, 1968,the City issued and sold $500,000.00 par value of "Water and Sewer Revenue Bonds,1969,"for the purpose of obtaining 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 Ci ty as adopted by .Ordinance No.608,as amended by Ordinance No.641 and further amended by Ordinance No.654,which "Water and Sewer Revenue Bonds,1969,"pursuant to Section 19 of Ordinance No. 394,were issued on a parity of lien with the outstanding "Water Rev- enue 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,"the "Water and Sewer Revenue Bonds, 1965,"and the "Water and Sewer Revenue Bonds,1967";and WHEREAS,the City Council has determined to add certain additional improvements to the waterworks utility of the City consist- ing of the construction and installation of a trunk sewer project to be known as "Trunk Sewer A"and to proceed with the carrying out of such trunk sewer project,and to provide the funds necessary to pay a part of the cost thereof,it is necessary to issue and sell $1,250,000.00 par value of water and sewer revenue bonds of the City; and WHEREAS,the City Council hereby finds and declares that all payments required by Ordinances Nos.384,415, 455,543,595 and 654 pertaining to the outstanding "Water Revenue Bonds,1952"(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," -4- the outstanding "Water and Sewer Revenue Bonds,1967,"and the out- standing "Water and Sewer Revenue Bonds,1969,"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,"the "Water and Sewer Revenue Bond Fund,1967,"and the "Water and Sewer Revenue Bond Fund,1969,"respectively,and that Larry Wade of Hammond,Collier,Wade and Associates,consulting engi- neers,a professional engineer 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.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 than sufficient to meet all expenses of opera- tion 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 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 "Water and Sewer Revenue Bonds,1969,"as such interest becomes due and payable,and to pay and redeem all of said bonds at maturity. -5- Section 2.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 following: There shall be constructed and installed approxi- mately 43,000 feet of 48"through 6"sanitary sewer main from Ebey Slough to 172nd Street N.E.along 47th and 51st Avenues N.E.,together with a pumping station,such project to be known as "Trunk Sewer A." There shall be included in the foregoing the acquisition and installation of all necessary materials,valves,hydrants,coup- lings,service connections,equipment and appurtenances that may be required,together with such easements as may be required,and there shall be included the performance of such work as may be incidental and necessary to the foregoing construction and installation. The City Council may modify the details of the foregoing system or plan,such as to make changes in the location and sizes of various pipelines and pump station,where,in its judgment,it appears advisable,provided such modifications do not substantially alter the purpose hereinbefore set forth. Section 3.The estimated cost of the acquisition,construc- tion 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 $2,250,000.00,such cost to be met and defrayed from the proceeds received from the issuance and sale of water and sewer revenue bonds in the amount pf $1,250,000.00 and the balance of such cost to be met from grants anticipated to be received from various agencies of the United States Government in the approximate amount of $924,000.00 and from other moneys available to the City for such purpose. Section 4.For the purpose of providing a part of 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 as specified and adopted in Section 2 hereof and hereby ordered to be carried out,there shall be issued and sold $1,250,000.00 par value of water and sewer revenue bonds to be known -6- \ and designated as "Water and Sewer Revenue Bonds,1969,Issue No.2" (hereinafter called the "Bonds").The Bonds shall be in denominations of $5,000.00,shall be numbered from 1 to 250,inclusive,shall be dated July 1,1969,and shall bear interest at the rate of 6-1/2%per annum,payable semiannually on the first days of January and July of each year,interest to maturity to be evidenced by coupons to be at- tached to the Bonds with full obligation on the part of the City to pay interest at the bond rate 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 hireinafter created,and the Bonds shall be a valid claim of the holder thereof only as against such special 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 obligation of the City. The Bonds shall mature in accordance with the following schedule,to-wit: Bond Numbers (Inclusive)Amounts Maturities 1 to 3 s 15,000 January 1,1972 4 to 7 20,000 January 1,1973 8 to 11 20,000 January 1,1974 12 to 15 20,000 January 1,1975 16 to 19 20,000 January 1,1976 20 to 24 25,000 January 1,1977 25 to 29 25,000 January 1,1978 30 to 34 25,000 January 1,1979 35 to 39 25,000 January 1,1980 40 to 45 30,000 January 1,1981 46 to 51 30,000 January 1,1982 52 to 58 35,000 January 1,1983 59 to 65 35,000 January 1,1984 66 to 73 40,000 January 1,1985. 74 to 82 45,000 January 1,1986 83 to 91 45,000 January 1,1987 92 to 101 50,000 January 1,1988 102 to III 50,000 January 1,1989 112 to 122 55,000 January 1,1990 123 to 134 60,000 January 1,1991 135 to 146 60,000 January 1,1992 147 to 159 65,000 January 1,1993 160 to 174 75,000 January 1,1994 175 to 190 80,000 January 1,1995 191 to 207 85,000 January 1,1996 208 to 225 90,000 January 1,1997 226 to 250 125,000 January 1,1998 -7·- Section 5.The City of Marysville reserves the right to redeem the Bonds maturing on or after January 1,1980,as a whole, or in part in inverse numerical order,for any purpose and from any source on July 1,1979,or on any semiannual interest payment date thereafter,at the following percentages of par,plus accrued interest to date of redemption,if called on the following dates: Call Date Call Price July 1,1979,or January 1,1980 105% July 1,1980,or January 1,1981 104% July 1,1981,or January 1,1982 103% . July 1,1982,or January 1,1983 102% July 1,1983,or January 1,1984 101% JUly 1,1984,and thereafter 100%(Par) 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.,Washington Building,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 redemption fund for the Bonds. Section 6.There is hereby created and established in the office of the City Treasurer a special bond redemption fund,which fund shall be used solely for the payment of the principal of and in- terest on the Bonds.Such fund shall be known and designated as the "Water and Sewer Revenue Bond Fund,1969,Issue No.2"(hereinafter called the "Bond Fund").The Bond Fund is hereby divided into two ac- counts,namely,a "Principal and Interest Account"and a "Reserve Ac- count."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 rev- enues of said utility a fixed amount,without regard to any fixed pro- portion,as follows: -8- (a)Into the "Principal and Interest Account," monthly,on or before the 20th day of each month beginning with the month of July,1969,and con- tinuing thereafter,1/6th of the next ensuing six months'interest requirements on ,the Bonds and beginning with the month of January,1971,1/12th 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 August,1969,not less than the sum of $1,600.00,until a total reserve amount of $96,000.00 shall be accumulated therein by no later than July 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 amount in the Bond Fund shall equal the total amount of the principal of and interest on all outstanding Bonds to the last maturity thereof,no further pay- ments 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 outstan?ing Bonds. -9- 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- posited 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 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,""Water and Sewer Revenue Bonds, 1969,"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. -10- 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,""Water and Sewer Revenue Bonds,1967,"and "Water and Sewer Revenue Bonds,1969,"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 opera- tion and debt service requirements of said outstanding bonds and that no portion of the waterworks utility of the City has been previously pledged for any indebtedness other than for the presently outstanding bonds referred to above. 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,1965," "Water and Sewer Revenue Bonds,1967,""Water and Sewer Revenue Bonds,1969,"and the Bonds are out- standing,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 annual 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 Rev- enue Bonds,1959,""Water and Sewer Revenue Bonds, 1963,""Water and Sewer Revenue Bonds,1965,""Water and Sewer Revenue Bonds,1967,""Water and Sewer Revenue Bonds,1969,"and the Bonds,after deducting the cost of maintenance,operation and taxes from the revenues of the waterworks utility of the City. -11- (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 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 -12- ing form: 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,""Water and Sewer Revenue Bonds,1967,"and "Water and Sewer Revenue Bonds,1969,"and otherwise meet the obligations of the City as herein set forth. Section 10.The Bonds shall be in substantially the follow- No. UNITED STATES OF AMERICA STATE OF WASHINGTON CITY OF MARYSVILLE $5,000.00 WATER AND SEWER REVENUE BOND,1969,ISSUE NO.2 6-1/2% KNOW ALL MEN BY THESE PRESENTS:That the City of Marysville,Washington,for value received, 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 SIX AND ONE-HALF PERCENT (6-1/2%)per annum,payable semiannually on January 1 and July 1 of each year, upon presentation and surrender of the attached interest coupons 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,Issue No.2"(hereinafter called the "Bond Fund").,for payment in full.Both prin- cipal of and interest on this bond are payable in lawful money of the United States of America at the office of the Treasurer of the City of Marysville, Washington,solely out of the special fund created by Ordinance No.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 revenues of the waterworks utility,including the sanitary sewerage system as -13- a part thereof,now belonging to or which may hereafter belong to the City,including all addi- tions,extensions and betterments thereof now or at any time made or constructed (such combined systems being hereinafter referred to as the "waterworks utility of the City"),without regard to any fixed proportion,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,""Water and Sewer Revenue Bonds,1969,"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 $1,250,000.00 par value of bonds,all of like date,tenor and effect,except as to maturities and option of re- demption,all payable from the Bond Fund and all issued by the City under and in pursuance of the laws of the State of Washington and Ordinance No. ,for the purpose of providing a part of the funds to pay the cost of making certain additions to and betterments and extensions of the waterworks utility of the City. The City has reserved the right to redeem the bonds maturing on or after January 1,1980,as a whole,or in part in inverse numerical order,for any purpose and from any source on July 1,1979,or on any semiannual interest payment date thereafter, at the following percentages of par,plus accrued ~interest to date of redemption,if called on the following dates: Call Date Call Price July 1,1979,or January 1,1980 105% July 1,1980,or January 1,1981 104% July 1,1981,or January 1,1982 103% July 1,1982,or January 1,1983 102% July 1,1983,or January 1,1984 101% July 1,1984,and thereafter 100%(Par) -14- 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.,Washington Building,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 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 ordinance reference is hereby made-as-more fUlly describing the coven- ants 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 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,Wash- ington,has caused this bond to be signed by the facsimile signature of the Mayor and attested by the manual signature of the.Clerk and the corporate seal of the City to be affixed .and the interest cou- pons attached to be signed with the facsimile signa- tures of such officials this first day of July,1969. CITY OF MARYSVILLE,WASHINGTON By (facsimile signature) Mayor ATTEST: City Clerk The interest coupons attached to the Bonds shall be in sUbstantially the following form: Coupon No. $162.50 On the FIRST DAY OF (JANUARY)(JULY),19 ,the CITY OF MARYSVILLE,WASHINGTON,upon presentation and surrender of this coupon,will pay to bearer at the office of the City Treasurer 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,Issue No.2,"said sum being six months' -15- interest then due on its "Water and Sewer Revenue Bond,1969,Issue No.2,"dated July 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,""Water and Sewer Revenue Bonds,1969,"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 addi- tional water and sewer revenue bonds while any of said outstanding bonds are outstanding,which Section is by this reference incorporated herein and made a part hereof and shall be applicable after the pay- ment and retirement of said outstanding "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 -16- ·~",--,........ in Section 2 hereof and herein ordered to be carried out.The ac- crued 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 May 12,1969,which acceptance is hereby ratified and confirmed. 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. PASSED by the City Council of the City of Marysville,Wash- ington,at a regular meeting thereof and APPROVED by the Mayor this 9th day of June,1969. Mayor ATTEST: City Clerk -17-