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HomeMy WebLinkAboutO-1403 - Water and sewer bonds (Special)p...•..... CITY OF MARYSVILLE,WASHINGTON ORDINANCE NO.~ AN ORDINANCE of the City of Marysville, Washington,providing for the issuance of $247,000 par value of ·Water and Sewer Revenue Bonds,1984,- for the purpose of obtaining funds 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.including the sewerage system as a part thereof,as specified and adopted in Ordinance No. 1269,and applicable to Utility Local Improvement District No.9 and to pay and retire the City·s outstanding ·Water and Sewer Revenue Bond Anticipa- tion Note,1984-;fixing the date,interest rates, form,terms and covenants of such bonds;providing for the sale and delivery of such bonds to Wm.P. Harper &Son &Company of Seattle,Washington;and fixing the interest rate on Utility Local Improvement District No. 9 assessment installments. WHEREAS,the City of Marysville,Washington (the ·City-), by Ordinance No.384,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 par value of ·Water Revenue Bonds,1952,·of which $134,000 par value thereof were heretofore issued as ·Series A,-$100,000 par value thereof as ·Series B,·and $46,000 par value thereof as -Series C,·and all which bonds have now matured and been paid;and WHEREAS,by Section 19 of such Ordinance No.384,the City 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 construction of a system I ...I ~. of sewerage or additions.extensions and betterments to an existing system and provide that the system of sewerage.includ- ing 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 waterworks 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 ·Water Revenue Bonds,1952,·provided certain conditions shall be met and complied with at the time of the issuance of such additional bonds;and WHEREAS,the City by Ordinance No. 385 combined the sewer- age system of the City with all additions and improvements thereto with the waterworks utility of the City,and the sewer- age system at all times since has been considered a part of and belonging to the waterworks utility of the City,and the words ·Waterworks Utility of the City·shall hereinafter mean the combined sewerage system and water system of the City,together with all additions thereto and betterments and extensions thereof hereafter made; and WHEREAS,the City subsequently issued and sold bonds of the following issues: ·Water and Sewer Revenue Bonds.1963· ·Water and Sewer Revenue Bonds,1965· -Water and Sewer Revenue Bonds,1967- - 2 - / / ·. r -Water and Sewer Revenue Bonds. 1969- (collectively hereinafter called the -Prior Lien Bonds-)and ·Water and Sewer Revenue Bonds.1969.Issue No.2- (the -1969 Bonds.Issue No.2-) all of which bonds having been issued on a parity of lien with each other and constitute a first and prior charge and lien on the Revenue of the Waterworks Utility of the City (as herein defined);and WHEREAS.the City thereafter issued and sold pursuant to Ordinance No.873.$1.090,000 par value of ·Water and Sewer Revenue Bonds.1975.-(the -1975 Bonds-).which 1975 Bonds constitute a charge and lien upon the Revenue of the Waterworks Utility of the City (as herein defined)junior to the prior charge and lien upon such Revenue for all of the Prior Lien Bonds but a first charge and lien upon assessments collected within Utility Local Improvement Districts Nos. 1.2,3 and 4 created in connection with and pledged to the payment of such 1975 Bonds;and WHEREAS.pursuant to Ordinance No.967.under date of issue of December 1,1977.the City issued and sold $2,307.000 par value of ·Water and Sewer Revenue Refunding Bonds.1977.-(the -1977 Refunding Bonds-)to provide a part of the funds to refund the outstanding 1969 Bonds.Issue No.2.and 1975 Bonds by providing for the payment of the principal of and interest on such 1969 Bonds.Issue No.2.as the same became due up to and - 3 - .'. including January 1,1991,and for the call,payment and retire- ment of all remaining outstanding 1969 Bonds,Issue No.2,on January 1,1991,and (b)for the payment of (i)the principal of and interest on such 1915 Bonds numbered 1 to 114,inclusive, being the Serial Bonds,as the same shall become due up through January 1,1986,at which time 1915 Bonds numbered 85 to 115, inclusive,will be called,paid and retired;(ii)the principal of and interest on 1915 Bonds numbered 215 to 224,inclusive,on January 1,1918,the holders thereof having consented to sur- render such bonds for payment and retirement on such date,and (iii)the interest on 1915 Bonds numbered 115 to 214,inclusive, being Term Bonds,as the same becomes due up through their respective call dates,and the principal of such Term Bonds as the same shall be called,paid and retired in accordance with the call provisions applicable thereto as provided in Ordinance No. 813 and in such Term Bonds;and WHEREAS,by subparagraph (i)of Section 9 of Ordinance No. 961 the City covenanted that: BIt would not create any special fund or funds for the payment of other revenue bonds,warrants or obligations,or authorize or issue any other revenue bonds,warrants or obligations which would rank on a parity with or have any priority over the payments into or the money in the Water and Sewer Revenue Refunding Bond Fund,1911,except that it reserved the right for: B(l)the purpose of acquiring,constructing and installing additions and improvements to and exten- sions and betterments of,acquiring necessary equip- ment for or making necessary replacements of - 4 - ·. equipment or capital improvements to the Waterworks Utility of the City;or a(2)The purpose of exchanging or purchasing and retiring prior to or at their maturity any out- standing water and sewer revenue bonds of the City; ato issue additional and/or refunding water and sewer revenue bonds (herein defined as 'Future Parity Bonds l )and to make payments into the Bond Fund for the payment of such Future Parity Bonds from the Revenue of the Waterworks Utility of the City, together with ULID Assessments collected in any ULID hereafter created in connection with the issuance of such Future Parity Bonds sufficient to pay the prin- cipal of and interest on such Future Parity Bonds, which such payments may rank equally out of such Revenue of the Waterworks Utility of the City and ULID Assessments collected in ULIDs Nos.1,2,3 and 4 if the City complies with the following conditions: a(l)All payments required by any ordinance of the City pertaining to outstanding water and sewer revenue bonds of the City shall have been made into the respective bond redemption funds for the payment of such water and sewer revenue bonds and no defi- ciency exists therein; a(2)If one or more ULIDs shall be created in connection with the issuance of such Future Parity Bonds,not less than 95\of the total amount of such Future Parity Bonds to be so issued shall be assessed against the properties specially benefited in such ULIDs,and the Assessments paid into the Bond Fund, or,if no ULID is created in connection with the issuance of such Future Parity Bonds,then there shall be on file a certificate from an independent licensed professional engineer experienced in the design,construction and operation of municipal utilities showing that in his professional opinion the annual income available for debt service on the Prior Lien Bonds,the Refunding Bonds,any Future Parity Bonds then outstanding and the Future Parity Bonds proposed to be issued for each year shall be at least equal to the Coverage Requirement (1.35 times that amount of debt service to be paid from Operating Revenue and not Assessments). - 5 - -(3)The ordinance authorizing any Future Parity Bonds shall require that the Reserve Account be increased within a period of five years after the date of issuance of the Future Parity Bonds to an amount equal to the average annual principal and interest requirements on all Future Parity Bonds. including the Refunding Bonds and the proposed Future Parity Bonds to be issued.including in such amount the principal amount of any Term Bonds included in the Future Parity Bonds issueR; and WHEREAS.pursuant to Ordinance No.1088.the City issued and sold $1.200.000 par value of -Water and Sewer Revenue Bonds. 1979-(the -1979 Bonds-).dated December 1.1979,which 1979 Bonds were issued on a parity of lien with the 1977 Refunding Bonds pursuant to the provisions of Section 9 of Ordinance No. 967;and WHEREAS.pursuant to Ordinance No. 1155 the City issued and sold $2.140,000 par value of ·Water and Sewer Revenue Bonds. 1980-(-1980 Bonds-).dated December 1.1980,which 1980 Bonds were issued on a parity of lien with the 1977 Refunding Bonds and the 1919 Bonds pursuant to the provisions of Section 9 of Ordinance No.961;and WHEREAS.the City Council.by Ordinance No.1269.as amended by Ordinance No.1304.specified.adopted and ordered the carrying out of a system or plan for making additions to and betterments and extensions of the Waterworks Utility of the City and authorized the issuance and sale of water and sewer revenue bonds in the principal sum of approximately $235,000 plUS inter- est on the short-term financing to provide the funds necessary - 6 - r ,. to carry out such system or plan,such bonds to be supported by assessments to be levied in Utility Local Improvement Districts No. 9 therein created;and WHEREAS,pursuant to Ordinance No.1361,the City issued its $200,000 par value ·Water and Sewer Revenue Bond Anticipa- tion Note,1984-(the ·Outstanding Note-)for the purpose of paying a part of the cost of redeeming the City's $235,000 par value ·Water and Sewer Revenue Bond Anticipation Notes,1983,- issued pursuant to Ordinance No. 1304 for the purpose of paying the cost of carrying out the system or plan of additions to and betterments and extensions of the Waterworks Utility of the City applicable to Utility Local Improvement District No. 9 pending the issuance of water and sewer revenue bonds;and WHEREAS,by Ordinance No.1395,the assessment roll in Utility Local Improvement District No. 9 was confirmed in the total amount of $241,000;and WHEREAS,the City Council has now determined that $247,000 par value of water and sewer revenue bonds of the City should be issued to obtain the funds with which to pay the cost of carry- ing out such system or plan of additions to and betterments and extensions of the Waterworks Utility of the City as specified and adopted in Ordinance No.1269,as amended by Ordinance No. 304;NOW,THEREFORE, THE CITY COUNCIL OF THE CITY OF MARYSVILLE,WASHINGTON,DO ORDAIN,as follows: - 1 - Section 1.Definitions.As used in this ordinance,the following words shall have the following meanings: (a)·Bond Fund·shall mean that special fund of the City known as the ·Water and Sewer Revenue Refunding Bond Fund, 1911,·created by Ordinance No. 961 for the payment of the principal of and interest on the 1977 Refunding Bonds and Future Parity Bonds,including the 1979 Bonds,the 1980 Bonds and the Bonds. (b)aBond Registrar·shall mean the fiscal agency of the State of Washington in Seattle,Washington,and New York, New York,as the same may be designated from time to time. (c)·Bonds·shall mean the $241,000 par value "Water and Sewer Revenue Bonds,1984,a of the CitY,issued pursuant to and for the purposes provided in this ordinance. (d)·1969 Bonds,Issue No.2,·shall mean the out- standing ·Water and Sewer Revenue Bonds,1969,Issue No.2,· refunded as provided in Ordinance No.961. (e)·1915 Bonds·shall mean the ·Water Revenue Bonds, 1915,"refunded and defeased as provided in Ordinance No.967. (f)a1919 Bonds·shall mean the $1.200,000 par value of ·Water and Sewer Revenue Bonds,1919,·issued for the pur- poses provided in and pursuant to Ordinance No.1088. (g)a1980 Bonds·shall mean the $2,140,000 par value of ·Water and Sewer Revenue Bonds,1980,·issued for the pur- poses provided in and pursuant to Ordinance No.1155. - 8 - .' (h)·City·shall mean the City of Marysville, Washington. (i)·Future Parity Bonds·shall mean any and all water and sewer revenue bonds of the City issued after the date of the issuance of the Bonds,the payment of the principal of and interest in which constitutes a charge and lien on the Revenue of the Waterworks Utility of the City and ULID Assess- ments equal in rank with the charge and lien Upon such Revenue and Assessments required to be paid into the Bond Fund to pay and secure the payment of the principal of and interest on the 1977 Refunding Bonds,the 1979 Bonds,the 1980 Bonds and the Bonds. (j)·Operating and Maintenance Expenses·shall mean all reasonable expenses incurred by the City in causing the Waterworks Utility of the City to be operated and maintained in good repair,working order and condition,but shall not include any depreciation or taxes levied or imposed by the City. (k)·Outstanding Note·shall mean the outstanding $200,000 par value ·Water and Sewer Revenue Bond Anticipation Note,1984,·issued for the purposes provided in and pursuant to Ordinance No.1361. (1)·Principal and Interest Account·shall mean the account of that name created in the Bond Fund for the payment of the principal of and interest on the 1977 Refunding Bonds,the 1979 Bonds,the 1980 Bonds,the Bonds and Future Parity Bonds. - 9 - >. (m)·Prior Lien Bonds·shall mean the outstanding ·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.· (n)·1977 Refunding Bonds·shall mean the $2,307,000 par value of "Water and Sewer Revenue Refunding Bonds,1977,· issued for the purposes provided in and pursuant to Ordinance No.967. (0)"Reserve Account"shall mean the account of that name created in the Bond Fund for the purpose of securing the payment of the principal of and interest on the 1977 Refunding Bonds.the 1979 Bonds.the 1980 Bonds.the Bonds and Future Parity Bonds. (p)·Revenue of the Waterworks Utility of the City" shall mean all the earnings and revenue received by the Water- works Utility of the City from any source whatsoever,except general taxes.ULID Assessments,proceeds from the sale of City property and bond proceeds. (q)-Term Bond Maturity Year·shall mean any calendar year in which bonds of anyone issue or series now or hereafter scheduled to mature (regardless of any reservation of prior redemption rights)is more than 1.25 times the average annual principal maturity of the bonds of such issue or series for the three maturity years immediately preceding such year. - 10 - '. (r)·Term Bonds·shall mean those outstanding bonds of any single issue or series scheduled to mature in any Term Bond Maturity Year. (s)·ULID·shall mean utility local improvement district. (t)·ULID Assessments·shall mean the assessments levied in such ULIDs of the City as may have heretofore been created and as may hereafter be created under state law which may authorize the creation of the same and shall include installments thereof and interest and any penalties thereon pledged to be paid into the Bond Fund. (u)·Waterworks Utility of the City·shall mean the waterworks utility of the City,including the sewerage system as a part thereof,and all additions thereto and betterments and extensions thereof at any time made. Section 2.For the purpose of providing the funds with which to carry out the system or plan of additions to and betterments and extensions of the Waterworks Utility of the City as specified and adopted in Ordinances No.1269,as amended by Ordinance No.1304,and applicable to ULID No. 9 heretofore created and to pay and redeem the Outstanding Note,there shall be issued and sold $241,000 par value of the Bonds. The Bonds shall be dated December 1,1984;shall be in the denomination of $5,000 each or any integral multiple thereof - 11 - within a single maturity,except that the amount of one bond maturing in the year 2001 shall be in the denomination of $2,000 or $5,000 or any integral multiple thereof plus $2,000;shall be numbered separately in the manner and with any additional desig- nation as the Bond Registrar deems necessary for purpose of identification;and shall bear interest computed on the basis of a 360-day year of twelve 30-day months,payable on June I,1985, and semiannually thereafter on each succeeding December 1 and June 1.The Bonds shall be payable solely out of the Bond Fund, and shall be a valid claim of the owner thereof only as against such Bond Fund and the amount of the Revenue of the Waterworks Utility of the City and ULID Assessments pledged to such fund and shall not be general obligations of the City. The Bonds shall bear interest and mature on December 1 in years and amounts as follows: Maturity Principal Interest Years Amounts Rates 2001 $61,000 11.00\ 2002 60,000 11.10\ 2003 60,000 11.20\ 2004 60,000 11.25\ If any Bond is not redeemed upon proper presentment at its maturity or call date thereof,the City shall be obligated to pay interest at the same rate for each such Bond from and after its maturity or call date until such Bond,both principal and interest,shall have been paid in full or until sufficient money - 12 - :~..~ for such payment in full is on deposit in the Bond Fund and such Bond has been called for payment. Upon surrender thereof to the Bond Registrar.Bonds are interchangeable for Bonds in any authorized denomination of an equal aggregate principal amount and of the same interest rate and maturity.Bonds may be transferred only if endorsed in the manner provided thereon and surrendered to the Bond Registrar. Such exchange or transfer shall be without cost to the owner or transferee. The Bonds shall be issued only in registered form as to both principal and interest on books or records (the ABond Register-)maintained by the Bond Registrar.Such Bond Register shall contain the name and mailing address of the owner of each Bond and the principal amount and number of Bonds held by each owner. Both principal of and interest on the Bonds shall be pay- able in lawful money of the United States of America.Interest on the Bonds shall be paid by check or draft mailed to the registered owners at the addresses appearing on the Bond Regis- ter on the 15th day of the month preceding the interest payment date.Principal of the Bonds shall be payable upon presentation and surrender of the Bonds by the registered owners at either of the principal offices of the Bond Registrar at the option of such registered owners. -13 - The City reserves the right to redeem the Bonds,at the option of the City,on June 1,1993,and on any interest payment date thereafter,as a whole,or in part in inverse order of maturity (and by lot within a maturity in such manner as the Bond Registrar shall determine),at par plus accrued interest to the date fixed for redemption. Portions of the principal amount of any Bond,in install- ments of $5,000 or any integral multiple of $5,000,may be redeemed.If less than all of the principal amount of any Bond is redeemed,upon surrender of such Bond at the principal office of the Bond Registrar,there shall be issued to the registered owner,without charge therefor,a new Bond or Bonds,at the option of the registered owner,of like maturity and interest rate in any of the denominations authorized by this resolution. Notice of any such intended redemption shall be given not less than 30 nor more than 60 days prior to the date fixed for redemption by first class mail,postage prepaid,to the regis- tered owner of any Bond to be redeemed at the address appearing on the Bond Register.The requirements of this section shall be deemed to be complied with when notice is mailed as herein provided,whether or not it is actually received by the owner of any Bond. The interest on the Bonds so called for redemption shall cease on the date fixed for redemption unless such Bonds so called are not redeemed upon presentation made pursuant to such call.In addition,such redemption notice shall be mailed - 14 - '. within the same time period.postage prepaid.to Moody·s Investors Service.Inc •• and Standard &Poor·s Corporation at their offices in New York.New York.or their successors.but such mailing shall not be a condition precedent to the redemp- tion of such Bonds. The City also reserves the right and option to purchase any of the Bonds on the open market at a price not in excess of par plus accrued interest to the date of purchase. Section 4.The Bond Fund heretofore has been created by Ordinance No. 967 in the office of the City Treasurer and has been divided into 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 shall set aside and pay into the Bond Fund all ULID Assessments paid in ULID Nos.1.2.3.4.5. 6.7.8. and 9 and.out of the Revenue of the Waterworks Utility of the City,in addition to the amounts required by Ordinance No. 967 to be paid therein for the 1977 Refunding Bonds.by Ordinance No. 1088 for the 1979 Bonds and by Ordinance No. 1155 for the 1980 Bonds.certain fixed amounts without regard to any fixed proportion.namely.into the Principal and Interest Account at least 20 days prior to each interest payment date.an amount.together with ULID Assessments paid into the Bond Fund and other money on deposit therein.sufficient to pay the inter- est payable on the Bonds on such interest payment date and on or - 15 - ·-. before December 1 of each year commencing with the month of December,2000,1/12th of the next ensuing twelve months' requirements for principal on the Bonds. There shall be deposited into the Reserve Account from Revenue of the Waterworks Utility of the City and ULID Assess- ments on or before the 20th day of December of each year,com- mencing with the month of December,1985,an amount equal to lIS the average annual debt service on the Bonds until an amount equal to the average annual debt service for the 1911 Refunding Bonds,the 1919 Bonds,the 1980 Bonds and the Bonds (the Required Reserves Amount)has been accumulated therein by no later than December I,1989. The Reserve Account shall be maintained in the Required Reserve Amount for the outstanding 1911 Refunding Bonds,the 1919 Bonds,the 1980 Bonds and the Bonds,except for withdrawals therefrom as authorized herein,at all times so long as any of the Bonds is outstanding,PROVIDED,that when the total amount in the Bond Fund shall equal the total amount of principal and interest for all outstanding bonds payable out of the Bond Fund to the last maturity thereof,no further payment need be made into the Bond Fund,and PROVIDED,FURTHER,that the amount in such Reserve Account may be reduced at any time to an amount not less than the average annual debt service requirements (includ- ing the interest payable on but excluding the principal amount -16 - of any Term Bonds of any issue payable out of the Bond Fund)for all bonds payable out of the Bond Fund then outstanding. In the event that there shall be a deficiency in the Prin- cipal and Interest Account in the Bond Fund to meet maturing installments of either principal or interest,as the case may be,such deficiency shall be made up from the Reserve Account by the withdrawal of cash therefrom for that purpose.Any defi- ciency created in the Reserve Account by reason of any such withdrawal shall then be made up from the Revenue of the Water- works Utility of the City and/or ULID Assessments payable into the Bond Fund first available after making necessary provision for the required payments into the Principal and Interest Account.The money in the Reserve Account otherwise shall be held intact and may be applied against the last outstanding bonds payable out of the Bond Fund. All money in the Bond Fund may be kept on deposit in the official bank depository of the City or in any national bank or may be invested and reinvested in United States Government obligations or any other legal investment redeemable at a fixed price and maturing no later than one month prior to the next mandatory call date for bonds subject to mandatory redemption or,if no mandatory call is applicable,one month prior to the final maturity date of the last outstanding bonds payable out of the Bond Fund.Interest earned on any such investment or on such bank deposit shall become a part of the Revenue of the - 11 - Waterworks Utility of the City and need not be deposited in the Bond Fund.except that interest earned on any investment of money in the Principal and Interest Account for bonds having a mandatory call provision shall be retained in the Principal and Interest Account and used to call and redeem such bonds. If the City shall fail to set aside and pay into the Bond Fund the amounts which it has obligated itself by this section to set aside and pay therein.the owner of any Bond may bring suit against the City to compel it to do so. The City Council declares that in fixing the amounts to be paid into the Bond Fund they have considered and had due regard for Operating and Maintenance Expenses and have not set aside into the Bond Fund a greater amount or proportion of the Revenue of the Waterworks Utility of the City than in their judgment will be available over and above the Operating and Maintenance Expenses and the debt service and reserve requirements for the presently outstanding Prior Lien Bonds. Section 5.The City finds and declares that: (1)The purpose for the issuance of the Bonds is to acquire.construct and install additions and improvements to and extensions and betterments of the Waterworks Utility of the City; (2)All payments required by any ordinance of the City pertaining to outstanding water and sewer revenue bonds of the City have been made into the respective bond redemption funds for the payment of such water and sewer revenue bonds,and no deficiency exists therein; -18 - (3)Not less than 95\of the amount of the Bonds is assessed against properties specially bene- fited in ULIO No.9;and (4)Provision is made herein for the payment into the Reserve Account of the additional Required Reserve Amount. Compliance with the conditions of sUbparagraph (i)of Section 9 of Ordinance No. 961 having been met,all ULIO Assessments in ULIOs Nos.1,2,3,4,5,6,1,8 and 9 and all Revenue of the Waterworks Utility of the City are pledged to the payments required to be made into the Bond Fund,and the 1911 Refunding Bonds,the 1919 Bonds,the 1980 Bonds and the Bonds constitute a charge and lien upon such ULIO Assessments and Revenue prior and superior to all other charges and liens whatsoever,excluding Operating and Maintenance Expenses payable out of such Revenue, except that the charge and lien upon such Revenue for the 1911 Refunding Bonds,the 1919 Bonds,the 1980 Bonds and the Bonds shall be junior to the charge and lien upon such Revenue for the outstanding Prior Lien Bonds and the outstanding 1969 Bonds, Issue No.2,provision for the payment and retirement of which has been made irrevocably through the refunding operation authorized by Ordinance No.961,and shall be on a parity with the charge and lien upon such Revenue and ULID Assessments for any Future Parity Bonds. Section 6.The City covenants with the owner of each of the Bonds as follows: - 19 - (a)All surplus Revenue of the Waterworks Utility of the City after payment of Operating and Maintenance Expenses,payment of principal of and interest on the outstanding Prior Lien Bonds.the 1911 Refunding Bonds,the 1919 Bonds.the 1980 Bonds. the Bonds and any Future Parity Bonds hereafter issued and required payments into the respective bond redemption funds and reserve accounts therefor shall be used only for the following purposes: (1)For purchasing necessary equipment. making necessary repairs or replacements to the Waterworks Utility of the City and for other necessary capital improvements thereto. (2)For constructing and installing addi- tions and improvements to and extensions of such Utility that are economically sound. (3)For redemption of outstanding bonds prior to their fixed maturities or purchasing the same in the open market for retirement only. (b)It will at all times maintain and keep the Waterworks Utility of the City and all additions and improvements thereto in good repair,working order and condition.and will at all times operate such Utility and the business in connection therewith in an efficient manner and at a reasonable cost. (c)It will establish,maintain and collect such rates and charges for water and sanitary sewage disposal service so long as any 1917 Refunding Bonds. 1979 Bonds.1980 Bonds.Bonds and any Future Parity Bonds are outstanding which will provide amounts annually at least equal to 1.35 times the average annual debt service,including the principal of any Term Bonds.on the Prior Lien Bonds,the 1977 Refund- ing Bonds.the 1919 Bonds,the 1980 Bonds,the Bonds and any Future Parity Bonds hereafter issued actually paid from such Revenue of the Waterworks Utility of the City and not from ULID Assessments,after payment of Operating and Maintenance Expenses (herein called the ·Coverage Requirement D ) .In determining the amount of debt service subject to coverage.there shall be deducted from the annual principal and interest required to be paid each year an amount equal to the percentage of the debt service for each -20 - ~. year on each issue of outstanding 1977 Refunding Bonds,1979 Bonds,1980 Bonds,Bonds and any Future Parity Bonds equal to the percentage arrived at by dividing the original total amount of the ULID Assessments specifically pledged to the Bond Fund in that issue by the original total principal amount of such issue.To simplify,where ULIDs are involved, only the debt service on that portion of any parity bond issue not covered by ULID Assessments shall be subject to the 35\Coverage Requirement. (d)It will not sell,lease,mortgage or in any manner encumber or dispose of all the property of the Waterworks Utility of the City unless provision is made for payment into the Bond Fund of a sum suffi- cient to pay the principal of and interest on all bonds payable out of the Bond Fund at any time out- standing,and it will not sell,lease,mortgage or in any manner encumber or dispose of any part of the property of such Waterworks Utility of the City that is used,useful and material to the operation thereof,unless provision is made for replacement 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 payable out of the Bond Fund as the Revenue available 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 avail- able for debt service for such bonds from the entire Utility for the same period.Any such money so paid into the Bond Fund shall be used to retire such outstanding bonds at the earliest possible date. (e)It will.while any of the Bonds remains outstanding,keep proper and separate accounts and records in which complete and separate entries shall be made of all transactions relating to its Water- works Utility,and it will furnish any subsequent owner or owners of the Bonds,if the Bonds shall be owned by other than a fund of the City.at the written request of such owner or owners.complete operating and income statements of such Utility in reasonable detail covering any calendar year.showing the financial condition of the water and sewer departments and compliance with the terms and condi- tions of this ordinance.not more than 120 days after - 21 - the close of such calendar year.and it will grant any owner or owners of at least 25\of the outstand- ing Bonds the right at all reasonable time to inspect the entire Waterworks Utility of the City and all records.accounts and data of the City relating thereto.Upon request of any owner of any of such Bonds.it will also furnish to such owner a copy of the most recently completed audit of the City's accounts by the State Auditor of Washington or such other audit as is authorized by law in lieu thereof. (f)It will not furnish water or sanitary sewage disposal to any customer whatsoever free of charge and will promptly take legal action to enforce collection of all delinquent accounts. (g)It will carry the types of insurance on the properties of the Waterworks Utility of the City in the amounts normally carried by private water and sewer companies engaged in the operation of water and sewerage systems.and the cost of such insurance shall be considered a part of Operating and Mainte- nance Expenses.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 such Utility on which such War Risk Insurance may be written in an amount or amounts to cover ade- quately the value thereof. (h)It will pay all Operating and Maintenance Expenses and otherwise meet the obligations of the City as herein set forth. (i)It will not create any special fund or funds for the payment of other revenue bonds. warrants or obligations.or authorize or issue any other revenue bonds.warrants or obligations which will rank on a parity with or have any priority over the payments into or the money in the Bond Fund. except that it reserves the right for: (1)The purpose of acquiring.constructing and installing additions and improvements to and extensions and betterments of.acquiring neces- sary equipment for or making necessary replace- ments of equipment or capital improvements to the Waterworks Utility of the City;or - 22 - (2)The purpose of exchanging or purchas- ing and retiring prior to or at their maturity any outstanding water and sewer revenue bonds of the City; to issue additional and/or refunding water and sewer revenue bonds (herein defined as RFuture Parity Bonds R)and to make payments into the Bond Fund for the payment of such Future Parity Bonds from the Revenue of the Waterworks Utility of the City. together with ULID Assessments collected in any ULID hereafter created in connection with the issuance of such Future Parity Bonds sufficient to pay the prin- cipal of and interest on such Future Parity Bonds. which such payments may rank equally out of such Revenue of the Waterworks Utility of the City and ULID Assessments collected in ULID Nos.1.2.3.4. 5.6.7.8 and 9 if the City complies with the same conditions as specified in subparagraph (i)of Section 9 of Ordinance No.967.which section by this reference is incorporated herein and made a part hereof. Nothing contained in this ordinance shall pre- vent the City from issuing revenue bonds or warrants which are a charge upon the Revenue of the Waterworks Utility of the City junior or inferior to the pay- ments required to be made therefrom into the Bond Fund and the Reserve Account therein or from pledging the payment of utility local improvement district assessments into the bond redemption fund created for the payment of the principal of and interest on such junior lien bonds as long as such utility local improvement district assessments are levied for improvements constructed from the proceeds of such junior lien bonds. Nothing herein contained shall prevent the City from refunding all or part of the Bonds in accordance with the provisions of the Refunding Bond Act of the State of Washington (RCW Chapter 39.53)as the same may be amended. and it is expressly provided that any such refunding bonds so issued shall have the same lien upon the Revenue of the Waterworks Utility of the City and ULID Assessments as the Bonds being refunded. (j)It will spend the proceeds of the Bonds with due diligence to completion of the purposes - 23 - specified herein and will make no use of the proceeds of the Bonds or other funds of the City at any time during the term of the Bonds which will cause such Bonds to be arbitrage bonds within the meaning of Section l03(c)of the United States Internal Revenue Code of 1954,as amended,and applicable regulations thereunder. Section 7.In the event the City shall issue advance refunding bonds pursuant to the laws of the State of Washington, or have money available from any other lawful source,to pay the principal of and interest on the Bonds or such portion thereof included in the refunding plan as the same become due and pay- able and to refund such then outstanding Bonds and to pay the costs of refunding,and shall have irrevocably set aside in a special fund for and pledged to such payment and refunding, money and/or direct obligations of the United States of America or other legal investments sufficient in amount,together with known earned income from the investment thereof,to make such payments and to accomplish the refunding as scheduled (herein- after called the Utrust account U )and shall make irrevocable provisions for redemption of such Bonds,then in that case all right and interest of the owners of the Bonds to be so retired or refunded (hereinafter collectively called the udefeased Bonds U)in the covenants of this ordinance,in the Revenue of the Waterworks Utility of the City,funds and accounts,includ- ing ULID Assessments,obligated to the payment of such Bonds thereafter shall cease and become void,except such owners shall - 24 - -. have the right to receive payment of the principal of and inter- est on the defeased Bonds from the trust account and.in the event the funds in the trust account are not available for such payment.shall have the residual right to receive payment of the principal of and interest on the defeased Bonds from the Revenue of the Waterworks Utility of the City and ULID Assessments without any priority of lien or charge against that Revenue and Assessments or covenants with respect thereto except to be paid therefrom.After the establishing and full funding of such trust account.the City may then apply any money in any other fund or account established for the payment or redemption of the defeased Bonds to any lawful purposes as it shall determine. subject only to the rights of the owners or holders of any other bonds then outstanding. In the event that the refunding plan provides that the Bonds being refunded or the refunding bonds to be issued be secured by cash and/or direct obligations of the United States of America or other legal investments pending the prior redemp- tion of those bonds being refunded and if such refunding plan also provides that certain cash and/or direct obligations of the United States of America or other legal investments are pledged irrevocably for the prior redemption of those Bonds included in the refunding plan.then only the debt service on the Bonds which are not defeased Bonds and the refunding bonds.the pay- ment of which is not so secured by the refunding plan.shall be - 25 - .... -.. included in the computation of coverage for issuance of Future Parity Bonds and the annual computation of coverage for deter- mining compliance with the rate covenants. Section 8.The Bonds shall be printed on lithographed or good bond paper in a form consistent with this ordinance and shall be signed by the facsimile signatures of the Mayor and City Clerk.and a facsimile reproduction of the City seal shall be printed thereon. Only such Bonds as shall bear thereon a Certificate of Authentication in the following form.manually executed by the Bond Registrar.shall be valid or obligatory for any purpose or entitled to the benefits of this ordinance: CERTIFICATE OF AUTHENTICATION This bond is one of the fully registered City of Marysville.Washington.Water and Sewer Revenue Bonds. 1984.described in the within mentioned ordinance. Washington State Fiscal Agency Bond Registrar Authorized Officer By .",...--.,..._~--."......."..."...",..,,.--_ Such Certificate of Authentication shall be conclusive evidence that the Bonds so authenticated have been duly executed.authen- ticated and delivered hereunder and are entitled to the benefits of this ordinance. In case either or both of the officers who shall have executed the Bonds shall cease to be such officer or officers of - 26 - "., the City before the Bonds so signed shall have been authenti- cated or delivered by the Bond Registrar,or issued by the City, such Bonds may nevertheless be authenticated,delivered and issued and upon such authentication,delivery and issue,shall be as binding upon the City as though those who signed the same had continued to be such officers of the City.Any Bond also may be signed and attested on behalf of the City by such persons as at the actual date of execution of such Bond shall be proper officers of the City although at the original date of such Bond any such person shall not have been such officer of the City. Section 9.The Bond Registrar shall keep,or cause to be kept,at its principal corporate trust office,sufficient books for the registration and transfer of the Bonds,which shall at all times be open to inspection by the City.The Bond Registrar is authorized,on behalf of the City,to authenticate and deliver Bonds transferred or exchanged in accordance with the provisions of such Bonds and this ordinance and to carry out all of the Bond Registrar's powers and duties under this ordinance. The Bond Registrar shall be responsible for its representa- tions contained in the Registrar's Certificate of Authentication on the Bonds.The Bond Registrar may become the owner of Bonds with the same rights it would have if it were not the Bond Registrar,and,to the extent permitted by law,may act as depository for and permit any of its officers or directors to - 27 - ·. act as a member of,or in any other capacity with respect to, any committee formed to protect the rights of Bond owners. Section 10.The Bonds shall be negotiable instruments to the extent provided by RCW 62A.8-102 and 62A.8-10S. Section 11.Wm.P.Harper &Son &Company,of Seattle, Washington.has submitted an offer to purchase the Bonds at a price of $97 per each $100 of par value plus accrued interest to the date of delivery of the Bonds,the City to furnish the unqualified approving legal opinion of Roberts &Shefelman, municipal bond counsel of Seattle,Washington.Bond counsel shall not be required to review,and shall express no opinion concerning,the completeness or accuracy of any official state- ment,offering circular or other sales material issued or used in connection with the Bonds,and bond counsel's opinion shall so state.The City Council,being of the opinion that it is in the best interests of the City to accept such offer,accepts the same.The Bonds,therefore,immediately upon their authentica- tion shall be delivered to the purchaser upon payment therefor in accordance with its offer. The accrued interest received from the purchaser of the Bonds shall be deposited in the Principal and Interest of the Bond Fund.An amount of the principal proceeds of the Bonds sufficient to pay and redeem the Outstanding Note shall be deposited in the ·Water and Sewer Revenue Bond Anticipation Note Fund,1984,·and the balance shall be deposited in the ·Water - 28 - -, •J and Sewer Construction Fund.1983.-and used for the purposes of the Bonds and to pay the costs of issuance and sale of the Bonds. Section 12.The interest rate on the installments-and delinquent payments of the special assessments in ULID No. 9 is revised and fixed at the rate of 11.~,. Section 13.This ordinance shall take effect and be in force five days after its passage.approval and legal publication. PASSED by the City Council at a regular open public meeting thereof and APPROVED by the Mayor this 10th day of December. 1984. CITY OF MARYSVILLE.WASHINGTON ATTEST: ~c~kv FORM APPROVED: 0454m - 29 - Sectlon lQ.The Bonds shall be negotiable lnstEu••atl to tbe extent proVlded by BeN 621.8-102 aDd 621.8-105 • ..Section 11.wa.P.Harper &Son &Coapany. of S.attle. Wasbington.baa 8ubaltted an offer to purchase the 80ndl at a prlce of '97 per each '100 of par value plus accrued later.st. to the date of delivery of tbe Bonds.the Clty to,furaish tb. unQu~11f1ed approvlng legal op1n10n of Roberts &Sbefelaan. aunlc~pal bond counsel of Seattle.W.sh1ngton.Bond coun ••l ,-,;. shall Dot be regulred to revl,v.and shall express no opinloD coneernlng.the coapletenes8 or accuracy of any official state· 'aen~pfferlng clrcular or other sales aaterla1 1ssued or use6 ln cDnnectlon wlth the Bonds. and bond counsel's oplnioD shall so state.The~lty Councll.being of the op1n10n that lt 18 1~ the b~st lnterests of the Clty to accept such offer.acceptl tbe saae.The ~onds.therefore.l ••edlately upon the1r authentlc~ t10n shall be dellvered to the purchaser upon payaent therefor ln accordance vith lts offer • .the accrued int,r~st recelved fro.the purchaser of the ~onds shall be deposlted ln the Prlnclpal and Interesl of the Bond lund.,An amount of the prlnclpal proceed.of tbe Bonds sufflclent to pay and redeem the Outstanding Note shall'be depos~ted 1n the ~Water and Sewer Bevenue Bond Anticlpation Hote run~.1984.-and the ba~ance shall be deposlted in the -Water and Sever Constructlon Fund.1983.-and used for the purposes ~f the Bonds and to pay the costs of lssuance and sale of the Bon41. Section l~.The lnterest rate on the lnstallaents and delinQuent payaents of tbe speclal assessaents 1n ULID Ho. 9 18 re¥lsed and flxed at the rate of 11.640%..' Sectlon 13.Thls ordlnance shall take effect and be in force flve days after lts passage,approval and legal publlcatlon .. PASSED by the C1ty Counctl at a regular open public aeet1ng thereof and APPROVED by the Mayor thls 10th day of Dece.ber. 1984. CITY OF MARYSVILLE.WASHIHG!OH Norman Anderson,Mayor Attest:Phillip E.Dexter,City Clerk Approved as to Form:James H..Allendoerfer,City Atty. Published:December 19,1984 Oversized Document removed and scanned Description _ File Name _ Parent Document _'_ • ,.1 ., AFFIDAVIT OF PUBLICATION No._ STATE OF WASHINGTON, County of Snohomish, ss. _____Jd.n..dSl __.lep.;~tst~,being first duly swom on oath deposes and says that he is the __s..e.cr.£.ta:e.y . _ of THE MARYSVILLE GLOBE, a weekly newspaper. That said newspaper is a legal newspaper which has been ap- proved by order of the Superior Court in Snohomish County June 18,1962 in compliance with Chapter 213 of Washington Laws of 1941, and it is now and has been for more than six months prior to the date of the publication hereinafter re- ferred to,published in the English language continually as a weekly newspaper in Marysville,Snohomish County,Wash- ington,and it is now and during all of said time was printed in an office maintained at the aforesaid place of publication of said newspaper.That the annexed is a true copY'of a ___________QI'JUDJ!!19JLuJ..1J.Q..'L as it was published in regular issues (and not in supplement form)of said newspaper once each week for a period of -~.ne---con- secutive weeks,commencing on the _l_cz.t day of P.~t~§.f1q~r 19J34.,and ending on the __J,9..i!:'1_day of R~~~1!.1?,et9_P_4, both dates inclusive, and that such newspaper was regularly distributed to its subscribers during aU of said period.That the full amount of the fee charged for the foregoing publi- cation is the sum of $_..2..l_Q1J...!'.iQ,which amount has been paid in full .~-~~~~----------------- SUbseri(!!sworn to before me this _#_ day of ~~~;~;;::.-. Residing at Marysville.