670_00001CITY OF MOSES IAKE,WASHINGTON
ORDINANCE NO.670
AN ORDINANCE specifying and adopting a systemiorplanofadditionstoandbettermentsandextensionsofthewaterworksutilityoftheCityofMosesLake,Washington,including the systemofsewerageasapartthereof;declaring theestimatedcostthereofasnearlyasmaybe;providing for the issuance of "Water and SewerRevenueBonds,1973,"in the principal amount of$1,100,000.00 to obtain a part of the funds withwhichtopaythecostofcarryingoutsuchsystemorplanandthesystemorplanofadditionstoandbettermentsandextensionsofthewaterworks ,utility of the City,including the system ofsewerageasapartthereof,as suecified andadoptedbyOrdinanceNo.652;fixing the date,form,maturities,terms and covenants of thosebonds;creating a bond redemption fund for thepaymentoftheprincipalthereofandinterestthereon;and providing for the calling of bidsforthesalethereof.
WHEREAS,pursuant to Ordinance No.290 of the City of
Moses Laker Washington,passed and approved October 25,1955,the
City issued and sold $1,100,000.00 par value of "Water and Sewer
Revenue Bonds,series A,"dated November 1,1955,for the purpose
of providing funds to redeem and retire outstanding "Water and
Sewer Revenue Coupon Warrants"of the City and t.o acquire,construct
and install certain additions and improvements to and extensions
of the combined water and sewerage system of the City;and
WHEREAS,by Section 14 of said Ordinance No.290,the
City covenanted and agreed with the owner and holder of each of
the "Water and Sewer Revenue Bonds,series A,"that it would not
create any special fund or funds for the payment of any other
water and sewer revenue bonds which would rank on a parity with,
or have any priority over the payments out of the "Water and
i Spwer Revenue Fund"of the City,created by Ordinance No.135,
into the "Moses Lake,Series A,Water and Sewer Revenue Bond
Redemption Fund,"for the payment of said "Water and Sewer Revenue
Bonds,Series A,"except that it reserved the right for the purpose '
o¿acquiring,constructing and installing additions and improvements
to .and extensions of,acquiring necessary equipment for,or making
necessary replacements of or repairs to equipment or facilities or
making capital improvements to the waterworks utility of the City,
including the system of sewerage as a part thereof,to issue
additional water and sewer revenue bonds therefor and to create a
special fund or funds for the payment of the principal thereof and
interest thereon,into which fund or funds payment may be made from
the "Water and Sewer Revenue Fund"sufficient to pay the principal
of and interest on such additional bonds and to maintain the required
reserve therefor,which such payments may rank equally with the
payments out of the "Water and Sewer Revenue Fund"into the "Moses
Lake,Series Ar Water and Sewer Revenue Bond Redemption Fund,"and
"Reserve Account"created by said Ordinance No.290 upon compliance
with certain conditions therein set forth;and
WHEREAS,pursuant to Ordinancë No.532,passed and approved
July 13,1965,the City issued and sold $220,000.00 par value of
"Water and Sewer Revenue Bonds,1965,"for the purpose of providing
funds to pay the cost of carrying out a system or plan of additions
to and betterments and extensions of the waterworks utility of the
City,including the system of sewerage as a part thereof,as specified
and adopted in Ordinance No.532,which "Water and Sewer Revenue
Bonds,1965,"were issued on a parity of lien with the outstanding.
"Water and Sewer Revenue Bonds,Series A,"pursuant to the provisions
of Section 14 of Ordinance No.290;and
WHEREAS,pursuant to Ordinance No.573,passed and approved
November 14,1967,the city issued and sold $315,000.00 par value
of "Water and sewer Revenue Bonds,1967,"for the purpose of providing
funds to pay the cost of carrying out a system or plan of additions
to and betterments and extensions of the watefworks uèility of the
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City,including the system of sewerage as a part thereof,-as specified
and adopted in Ordinance No.573,which "Water and Sewer Revenue Bonds,
1967,"were issued on a parity of lien with the outstanding "Water
and sewer Revenue Bonds,Series A,"and the outstanding "Water and
Sever Revenue 'Bonds,1965,"pursuant to the provisions of Section 14
of Ordinance No.290;and
WHEREAS,by Ordinance No.652,passed and approved September
26,1972,the City specified and adopted a system or plan of additions
to and betterments and extensions of the waterworks utility of the
City,including the system of sewerage as a part thereof,to provide
for the demolition of its existing sewage treatment plant and for the
construction òf a new secondary sewage treatment plant,declared the
estimated cost thereof as nearly as.may be and provided for the
issuancé and sale of approximately $335,000.00 par value of water and
sewer revenue bonds to obtain a part of the funds with which .to pay
the cost of such system or plan,the remaining cost anticipated to be
he
Ee trecnem e fP
te
tiWash ngncon Sht te Department
have been subsequently approved in a substantially larger amount than
anticipated at the time of the passage of Ordinance No.652 thereby
requiring the proceeds from the issuance and sale of water and sewer
revenue bonds only in the amount of $63,500.00 to pay a part of the
cost of carrying out the system or plan as specified and adopted in
Ordinance No.652;and
WHEREAS,the City Council has determined it to be in the
best interests of the City and its inhabitants that certain additional
water improvements and sanitary sewer improvements be made and that
additional water and sewer revenue bonds of the City be issued to
nal pr e t
nds roc sar to pay theacosse erm su
ads
are ptoposed to be issued on a parity of lien with the outstanding
"Water and sewer Revenue Bonds,series A,""Water and Sewer .Revenue
Bonds,1965,"and "Water and Sewer Revenue Bonds,1967";and
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WHEREAS,the City Council hereby finds and declares that..
all conditions required to be met as set forth in Section 14 of
Ordinance No.290 for the issuance of parity bonds have been or
will be met prior to the issuance of the proposed additional parity
thencin rnesta reaertific
a es
onbe hon file weithad
t n 1 p
rr
bonds to be issued have been determined and before the delivery of
the bonds to the purchasers thereof,from Stevens,Thompson &Runyan,
Inc.,an independent professional engineering firm,showing that in
its professional opinion the net income of the waterworks utility of
the City,including the sewerage system as a part thereof (therein
defined as the "System"),is.sufficient to meet the 1.35 coyerage
requirement as specified in subparagraph (4)of paragraph A of
Section 14 of Ordinance No.290;NOW,THEREFORE,
THE CITY COUNCIL OF THE CITY OF MOSES LAKE,WASHINGTON,DO
DRDAIN,as follows:
have the
meneacn
g re a
e t srthrdinance thhecontex
nd c es
€hat another meaning is intended:
(a)The word "System"shall mean the existing combined
water and sewerage system of the City comprising the waterworks
utility of the City as the same will be added to,improved and
extended out of the proceeds from the sale of the bonds authorized
herein and as said combined System may be later added to,improved
and extended.
(b)The word "Bonds"shall mean the water and sewer
revenue bonds of the City issued pursuant to and for the purposes
provided in this ordinance,
shall mean e
h oanr "OubotstandingthPr
5 0
0e v u Bondw
ter
and sewer revenue bonds of the City 'dated July 1,1950,and issued
pursuant to its Ordinance No.135.
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(d)The words Noutstanding Parity Revenue Bonds"shall
mean the outstanding bonds of the $1,100,000.00 issue of "Water
and sewer Revenue Bonds,Series A,"of the City,dated November 1,
1955,and issued pursuant to its Ordinance No.290,the outstanding
bonds of the $220,000.00 issue of "Water and Sewer Revenue Bonds,
1965,"of the City,dated July 1,1965,and issued pursuant to its
Ordinance No.532,and the outstanding bonds of the $315,000.00
issue of "Water and Sewer Revenue Bonds,1967,"of the City,dated
November 1,1967,and issued pursuant to its Ordinance No.573.
(e)The words "Water and Sewer Revenue Fund"shall mean
the fund of that name created by Section 7 of Ordinance No.135 of
the City.
(f)The words "Reserve Fund"shall mean the "Moses Lake,
Water and Sewer Revenue Bond Reserve Fund,"created by Ordinance No.
290 to be drawn upon for the sole purpose of making up any deficiency
in the "Moses Lake,Series A,Water and Sewer Revenue Bond Redemption
Fund,"also created by Ordinance No.290,in the "Moses Lake,Water
i and Sewer Revenue Bond Fund,1965,"created by Ordinance No.532,
and in the "Moses Lake,Water and Sewer Revenue Bond Fund,1967,"
created by Ordinance No.573,for the payment of the Outstanding
Parity Revenue Bonds and in any other bond redemption fund (including
the Bond Fund hereinafter created)created for the payment of the
principal of and interest on any water and sewer revenue bonds of
the City which may be issued later on a parity with the Outstanding
Parity Revenue Bonds and the Bonds.
Section 2.The City of Moses Lake,Washington,hereby
specifies and adopts a system or plan for making additions to and
betterments and extensions of the System to consist of the following:
SEWERAGE SYSTEM IMPROVEMENTS
I The city shall improve its sanitary sewage collection and disposalfacilitiesbyconstructing,installing and providing the following:
A 10"trunk sewer line in Eastlake Dr.running north from theconnectionwiththeexistingsewersysteminNelsonRd.to theconnectionwithandinterceptionoftheEastlakeLiftStation.
A 6"force main in Central Dr.running south from the connection with
the existing Knolls vista Lift Station to connection with a new 12"
trunk sewer at the intersection of the extensions of Central Dr.and
Northshore Drive.
A 12"trunk sewer running east from the intersection of-the,extensions
of Central Dr.and Northshore Dr.to connection with a new 12"siphon
at the edge of Parker Horn.
A 8"and 12"siphon crossing Parker Horn from the Knolls Vista area
Bro d
aconnveectio nd
Doa ed a t
eta iou hat the intaersect oo n
A lift station at the intersection of Broadway Ave,and Dogwood
pumping into a new 10"force main.
A 10"force main in Dogwood running south from the intersection of
Broadway Ave,and Dogwood to the existing sewage treatment plant.
The existing sewage collection system will be tested and evaluated
for infiltration and inflow problers and sewer sealing and replacement
as required by the results of the evaluation will follow.
The existing Main Lift Station shall have super structure and
mechanical equipment rebuilding and/or replacement.
The existing winona Lift Station shall be rebuilt.
Telemetering systems shall be provided for the existing Division St.,
Knolls Vista,Main,Marina Dr.,Pelican Horn,Peninsula,Sewage
Treatment Plante Wheeler Rd.,and Winona St.lift stations.
The existing sewage treatment plant shall have expansion and/or
modifications to its chlorine contact basin,process equipment,
púmps,piping and effluent outfall and a new control and/or shop
building.
A sewer jet for sewer cleaning shall he purchased.
Telemetering systems shall be provided for the existing "A,""B,"
"D"and No.2 lift stations.
The existing Marina and Pelican Horn lifù stations shall have
mechanical equipment rebuilding and/or replacement.
The'existing sewage collection system will be tested and evaluated
for infiltration and inflow problems and sewer sealing and replacement
as required by the results of the evaluation will follow.
WATER SYSTEM IMPROVEMENTS
The city shall improve its water supply,storage and distribution
facilities by constructing,installing and providing the following:
A groundwater supply study and operational analysis of the existing
system to improve the capacity and pressure of the system by improvin
the pressure reducing Valve and booster pump operations.
Based upon the above study,a new reservoir site shall he selected
and together with interconnecting water lines and necessary syst
modifications shall be constructed.
Painting of and providing safety equipment for all existing reservoi
New and/or rehabilitation and repair of existing wells,well pumps
and well pump controls.
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An 8"line in Valley Rd.between connections to existing lines inGrapeDr.and Stratford Rd.
A 10"line running west from Well No.9 to Paxson Dr.,thence southtoconnectiohwithtwonew8"lines at the northwest corner of Section22,R.2BE.,T.19N.,W.M.
An 8"line running west from the connection to an existing 6"linenearthewestendofNorthshoreDr.to connection with an existing Ii6"line at the east end of Crestview Dr.
An 8"line running north from connection to an existing 6"line ateastendofCrestviewDr.to Northwest corner of Section 22,R,28E.,T.19N.,W.M.thence west to Connection with existing 6".line inCrestviewDr.
A 6"line in Love Ave,from Connection to an existing 6"line toconnectiontoanew10"line running north from the northwest cornerofSection22,R.28E.,T.19N.,W.M.
An 8"line in Schilling Dr.running east and west between connectionstoexisting6"and 8"lines.
A 10"line running north from a connection to a new 8"line inSchillingDr.to Connection to a dead end 6"line in the vicinity.west of Larson Heights School.
Miscellaneous water mains which are in a deteriorated condition shallbereplaced.
New and/or modification of well house structures for Well Nos.3and4.
I Landscaping and beautification of all existing well sites.
There shall be included in all of the foregoing,the
acquisition and installation of all the necessary valves,fittings,
couplings,connections,equipment and appurtenances and the acquisition
of any easements,rights-of-way and land that may be required,and
there shall also be included the performance of such work as may be
incidental and necessary to the foregoing construction and
installation.
All of the plans shall be subject to such additions or
changes not affecting the main general plans as may be authorized by
the City either prior to or during the actual course of construction.
Section 3.The life of the foregoing additions to and
i betterments and extensions of the System is hereby declared to be
at least 25 years.
Section 4.The estimated cost of the acquisition,
construction and installation of the above described additions and
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improvements to and extensions of the System,including all costs
and expenses associated therewith,is hereby declared to be
¢1,622,600.00 which ecst shall be paid from the following sources:
1.From the proceeds received from the issuance
and sale of the Bonds in the amount of $1,036,500.00;
and
2.From grants anticipated to be received from
the State Department of Ecology and the Environmental
Protection Agency,together with other funds and
System revenues of the City available therefor in
the approximate amount of $1,586,100.00.
Section 5.The gross revenues and benefits to be derived
from the operation and maintenance of the System at the rates to be
charged for water service and sanitary sewage disposal service on
the entire System will,in the judgment of the City Council,be more
than sufficient to meet all expenses of operation and maintenance
thereof and to permit the setting aside into a special fund out of
the gross revenues of the System of sufficient amounts to pay interest
on the Bonds and on all Outstanding Prior Lien Revenue Bonds and
all Outstanding Parity Revenue Bonds as such interest becomes due
and payable,and to pay and redeem all of said bonds at.maturity.
Section 6.For the purpose of obtaining a part of .the g
funds with which to carry out the system or plan for making adiitions
to and betterments and extensions of the System as adopted in Section
2 hereof (to-wit:$1,036,500.00)and with which to carry out the
system or plan of additions and betterments and extensions of the
System as specified and adopted and ordered to-be-carried out by
Ordinance No.652 (to-wit:$63,500.00),there shall be issued and
sold a combined issue of $1,100,000.00 par value of "Water and Sewer
Revenue Bonds,1973"(herein called the "Bonds").The Bonds shall
be dated July 1,1973,shall be in denominations of $5,000.00 each,
shall be numbered from 1 to 220,inclusive,and shall bear interest
payable on November 1,1973,and semiannually thereafter on May 1
and November 1 of each year,interest to maturity to be «vàdenced
y coupons to be attached 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 päid in full.
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Both the principal of and interst on the ßonds will be payable
solely out f the special bond redemption fund hereinafter created
and shall be payable in lawful money of the United States of America
at the office of the Treasurer of the City or,at the option of the
holder,at either fiscal agency of the State of Washington in the
Cities of Seattle,Washington,or New York,New York.The Bonds
shall mature in accordance with the following schedule,to-wit:
Bond Numbers(Inclusive)Amounts Maturities
1 to 11 $55,000 November 1,198912to32105,000 November 1,199033to57125,000 November 1,199158to83130,000 November 1,199284to111140,000 November 1,1993112to140145,000 November 1,1994
,141 to 171 155,000 November 1,1995172to204165,000 November 1,1996205to22080,000 November 1,1997
Bection 7.The City reserves the right to redeem the
Bonds as a whole,or in part in inverse numerical order,on November
1,1985,or on any semiannual interest payment date thereafter at
i the following percentages of par,if redeemed on the following dates,
plus .accrued interest to date of redemption in each case,to-wit:
On November 1,1985,or May 1,1986 103 %On November 1,1986,or May 1,1987 102-1/2%On November 1,1987,or May 1,1988 .102 %On November 1,1988,or May 1,1989 101-1/2%On November 1,1989,or May 1,1990 101 %On November .1,1990,or May 1,1991 --100-1/2%On November 1,1991,and thereafter 100%(Par)
Notice of any call for redemption of any of the Bonds prior
to their stated maturity dates shall be published at least once in
the official newspaper of the City,not less than thirty nor more than
Eorty-five days prior to the call date.Notice of such redemption
shall also be mailed to the principal underwriter who purchases the
Bonds at his or its principal place of business or local office
I within the State of Washington within the same period.In addition,
such redemption notice shall also be sent to Moody's Investors
Service,Inc.,and Standard &Poor's Corporation,at their offices
4 in New Yprk,New York,but the mailing of such notice to such
corporations shall not be a condition precedent to the redemption
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of such Bonds.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 hereinafter created.
Section 8.Pursuant to Section 7 of Ordinance No.135,
the Water and Sewer Revenue Fund of the City was created into which
all gross earnings and revenue of the System must be paid and
coilegted.All costs of maintaining and operating the System,all
charges for the payment of the principal of and interest on the
Outstanding Prior Lien Revenue Bonds and the Outstanding Parity
Revenue Bonds,all costs of additions,improvements,betterments
and repairs to and replacements and extensions of the System (except
when the same are financed by the issuance of bonds or warrants
drawn on other special funds of the city),all payments required
to be made into the "Moses Lake,Series A,Water and Sewer Revenue
Bond Redemption Fund,"into the "Moses Lake,Water and Sewer Revenue
Bond Redemption Fund,1965,"and into the "Moses Lake,Water and
d R se e
ndpa
e te
bythe dOtsantanding
290,all payments required to be made into the bond redemption fund
hereinafter created,and all payments which may be required by
subsequent ordinances of the City to be made into any other hond
redemption fund and/or reserve fund or account created for the
purpose of paying or guaranteeing the payment of the principal of
and interest on any subsequently issued water and sewer revenue
bonds of the city,shall be paid out of the Water and Sewer Revenue
Fund.
Section 9.There is hereby created and established in
the office of the City Treasurer a special fund of the City to be
nh
i
aftheer "Ma
1 d
Lakee,WateFr ud )Seweh Revennue Bondl Fbund,1973"
upon for.the sole purpose of paying the principal of and interest
on all of the outstanding Bonds as the same shall become due.
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The City hereby obligates and binds itself ta>set aside
and pay into the Bond Fund out of the moneys in the Water and Sewer
Revenue Fund the following fixed amounts necessary to pay the principal
of and interest on all of the outstanding Bonds as the same
respectively become due and payable:
Monthly,on or before the 20th day of each month,i beginning with the month of July,1973,1/4th of theamountofinterestpayableontheBondsonNovember 1,1973,and thereafter 1/6th of the next ensuing six
,months'requirements for interest on the Bonds and
beginning with the month of November,1988,1/l2th of
the next ensuing twelve months'requirements forprincipalontheBonds,and continuing thereafteruntiltheBonds,both principal and interest,arepaidinfull.
When the moneys paid into the Reserve Fund in the amounts
required by Ordinances Nos.290,532 and 573 for the purpose of
000:guaranteeing the payment of the principal of and interest on the
C3 Outstanding Parity Revenue Bonds and in the amounts required by
Section 10 of this ordinance for guaranteeing payment of the principal
of and interest on.the Bonds,plus the moneys in the Bond Fund,are
sufficient to redeem and retire all the outstanding Bonds,then no
i further payments need be made-into the Bond Fund and such moneys
in the Reserve Fund and Bond Fund shall then be used to redeem and
retire the outstanding Bonds,provided,however,that only such
amounts may be taken out of such Reserve Fund and used for such
purpose that will leave in the Reserve Fund a balance equal to at
least the amounts required in any calendar year thereafter to pay the
principal of and interest on all the outstanding bonds issued on a
parity with the Bonds.
The amounts so pledged to be paid into the Bond Fund and
the Reserve Fund are hereby declared to be a prior lien and charge
upon the moneys in the Water and sewer Revenue Fund superior to all
other charges of any kind or nature except the normal costs of
I maintenance and operation of the System,exclusive of any City
imposed taxes or payments in lieu of taxes payable from the revenues
of the System which shall not be deemed a normal cost of maintenance
and operation of the System,and the charges necessary for the
payment of the principal of and interest on the Outstanding Prior
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Lien Revenue Bonds and equal in rank to any charges made for the
payment of the principal of and interest on the Outstanding Parity
Revenue Bonds and any water and sewer revenue bonds which may be
issued later on a parity with the Outstanding Parity Revenue.Bonds
and the Bonds.
Section 10.The City hereby agrees that it will set aside
and pay into the Reserve Fund out of the moneys in the Water and
Sewer Revenue Fund and any other moneys which the City may have
available for such purpose equal monthly payments commencing with
the month of July,1973,so that by July 1,1978,there will be a
sum in the Reserve Fund which,plus the moneys in the Reserve
Account created in Section 9 of Ordinance No.135 for the purpose
of guaranteeing the payment of the principal of and interest on the
Outstanding Prior Lien Revenue Bonds and plus the moneys in said
Reserve Fund required to be maintained therein for the Outstanding
Parity Revenue Bonds by Ordinances Nos.290,532 and 573,will be
equal to the maximum amount required in any calendar year hereafter
to pay the principal of and interest on the Outstanding Prior Lien
Revenue Bonds,the Outstanding Parity Revenue Bonds and the Bonds.
The City further agrees when the amounts in the Outstanding
Prior Lien Revenue Bond Reserve Account and the Reserve Fund are equal
to the maximum amount required in the paragraph immediately above
that it will maintain that amount therein for as long as any of said
Outstanding Prior Lien Revenue Bonds,Outstanding Parity Revenue
Bonds and the Bonds are outstanding.In the event the $24,000.00 in
the Outstanding Prior Lien Revenue Bond Reserve Account,or any part
thereof,is used to retire the last outstanding outstanding Prior
Lien Revenue Bonds then the moneys in this Reserve Fund must be
increased out of the moneys in the Water and Sewer Revenue Fund
herea reguapaythe maxi num amount redqu rn
r
teach as ndd nyePaarrity
Revenue Bonds,the Bonds and any water and sewer revenue bonds which
may be issued later on a parity.therewith.
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Any surplus in-the Reserve Fund greater-than the maximum
amount required in any subsequent calendar year to pay the principal
of and interest on the outstanding Parity Revenue Bonds,the Bonds
and any bonds that have been issued on a parity therewith may be
i used to redeem and retire any of such outstanding bonds.In the
event there shall be a deficiency in the Bond Fund to meet maturing
installments of either interest on or principal of any of the Bonds
or in any bond redemption fund created for the payment of the
principal of and interest on any water and sewer revenue bonds
issued on a parity with the Outstanding Parity Revenue Bonds and
AD the Bonds,such deficiency shall be made up from the Reserve Fund
by the withdrawal of cash therefrom and any deficiency created
in the Reserve Fund by reason of any such withdrawal shall then be
made up from the moneys in the Water and Sewer Revenue Fund first
available after making necessary provision for the required payment
into the Bond Fund,the outstanding Parity Revenue Bonds redemption
i Eunds and other bond redemption funds created for the payment of the
principal of and interest on any water and sewer revenue bonds
issued on a parity with the Outstanding Parity Revenue Bonds and
the Bonds.
All moneys in the Reserve Fund may be kept in cash or
invested in United States Government obligations having a guaranteed
market or United States Government obligations maturing not later
than twelve years from date of purchase and in no event later than
the last maturity date of the Bonds,or any revenue bonds issued on
a parity therewith.Interest earned on any such investment shall
be prorated in the proportion that the respective amounts paid into
the Reserve Fund for each of said issues of bonds bear to each
I other and such prorated amount shall be deposited and become a
part of each bond redemption fund created for the payment of the
principal of and interest on the bonds of each of such issues.
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Section 11.The corporate authorities of the City of
Moses .Lake hereby declare in fixing the amounts to be made into
the Bond Fund and Reserve Fund as aforesaid that they have exercised
dued regac
a
ger thnec
r
tmainytenanecepr nn
ip n
nterethe Synstem
Outstanding Prior Lien Revenue Bonds and the Outstanding Parity
Revenue Bonds and have not obligated the City to set aside and pay
into said funds a greater amount of the revenue of the System,than
in their judgment will be available over and above such costs of
maintenance and operation and the charges necessary to pay such
principal and interest.
Section 12.The City of Moses Lake hereby covenants and
agrees with the owner and holder of each of the Bonds as follows:
(a)That it will establish,maintain and
collect rates and charges for water and sanitary
sewage disposal service,for as long as the
Outstanding Prior Lien Revenue Bonds,the
Outstanding Parity Revenue Bonds,-the Bonds,
-and any water and sewer revenue bonds that may
be issued on a parity with the Outstanding
Parity Revenue Bonds and the Bonds are
outstanding,that will make available for the
payment of the principal of and interest on all
of such bonds as the same shall become due an
amount equal to at least 1.35 times the amount
required in each calendar year hereafter for the
payment of all of such principal and interest.
The amount "available for the payment of the
principal of and interest on all of such bonda
as the same shall become due"is hereby defined
as "the money paid into the Water and Sewer
Revenue Fund each calendar year after normal
expenses of maintenance and operation of the
System have been taken therefrom but before
depreciation and any City imposed taxes or pay-
ments in lieu of taxes payable from the revenues
of the System."
(b)That it will at all times keep and maintain
the System in good repair,working order and
condition,and will at all times operate the
same and the business in connection therewith in
an efficient manner and at a reasonable cost.
(c)That it will not sell or otherwise dispose
of any of the properties of the system (unless
the same are no longer used,necessary or useful
in the operation thereof)unless provision is
made for payment into the Bond Fund of a sum
sufficient to pay the principal of and interest
on all the outstanding Bonds in accordance with
the tcrms thereof.
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(d)That it will,while any of the Bondsremainoutstanding,keep proper and separateaccountsandrecordsinwhichcomoleteandseparateentriesshallbemadeofalltransactionsrelatingtoitsSystem,and itwillfurnishtheoriginalpurchaserorpurchasersoftheBondsoranysubsequentiholderorholdersthereof,at the writtenrequestofsuchholderorholders,complete ,operating and income statement of the Systeminreasonabledetailcoveringanycalendar
year not more than ninety days after the closeofsuchcalendaryearanditwillgrantanyholderorholdersofatleast25%of theoutstandingBondstherightatallreasonabletimestoinspecttheentireSystemoftheCityandallrecords,accounts and data of the City
relating thereto.Upon request of any holderofanyoftheBonds,it will furnish to suchholderacopyofthemostrecentlycompletedauditoftheCity's accounts by the StateAuditorofWashingto¤r or such other audit asisauthorizedbylawinlieuthereof.
(e)That it will not furnish water orsanitarysewagedisposalservicetoanycustomerwhatsoeverfreeofchargeandwillpromptlytakelegalactiontoenforcecollection
of all delinquent accounts.
(f)That it will carry the tyÑeof insuranceionitsSystempropertyinthemuountsnormallycarriedbyprivatewaterandsewercompanies
engaged in the operation of water and sewagesystems,and the cost of such insurance shall beconsideredpartoftheoperatingandmaintaining
of said utility.If,as,and when,the UnitedStatesofAmericaorsomeagencythereofshallprovideforwarriskinsurance,the City further
agrees to take out and maintain such insurance
on all or such portion of the system on which
war risk insurance may be written in an amount
or amounts to cover adequately the value thereof.
(g)That it will pay all costs of maintenanceandoperationoftheSystemandthedebtservicerequirementsofthe.Outstanding Prior Lien RevenueBondsandtheOutstandingParityRevenueBondsandotherwisemeettheobligationsoftheCityashereinsetforth.
Section 13.The Bonds shall be in substantially the
Eollowing form:
I
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No.$5,000.00
UNÍTED STATES OF AMERICA
STATE OF WASHINGTON
CITY OF MOSES LAKE
WATER AND SEWER REVENUE BOND r 197 3 lilKNOWALLMENBYTHESEPRESENTS:That the City
of Moses Lake,Washington,a municipal corporation
of the State of Washington,for value received
hereby promises to pay to the bearer on the FIRST
DAY OF NOVEMBER,19 _,the principal sum of
FIVE THOUSAND DOLLARS
together with interest thereon at the rate of
PERCENT (%)
per annum,payable on November 1,1973,and
semiannually thereafter on the first days of May
and November of each year,upon the 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 "Moses Lake,Water and sewer Revenue Bond Fund,
1973"(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 office of the Treasurer of the City
of Moses Lake,Washington,or,at the option of the
holder,at either fiscal agency of the State of
Washington in the Cities of Seattle,Washington,or
New York,New York,solely out of the special fund
created by Ordinance No.and referred to
herein as the Bond Fund.
The city does hereby pledge and bind itself to
set aside out of the moneys in the "Water and Sewer
Revenue Fund"of the City and to pay into the "Moses
Lake,Series A,Water and sewer Revenue Bond
Redemption Fund,"for the payment of the outstanding
"Water and Sewer Revenue Bonds,Series A,"into the-
.Moses Lake,Water and Sewer Revenue Bond Redemption
Fund,1965,"for the payment of the outstanding "Water
and Sewer Revenue Bonds,1965,"into the "Moses Lake,
Water and Sewer Revenue Bond Fund,1967,"for the
payment of the outstanding "Water and Sewer Revenue
Bonds,1967,"and into the Bond Fund for the payment
of the bonds of this issue and into the "Moses Lake,
Water and Sewer Revenue Bond Reserve Fund,"created
by Ordinance No.290,the various amounts reguired
by Ordinances Nos.251,290,532,573 and to be
paid into and maintained in said funds,all within
the times provided by said ordinances.The omounts
so pledged are hereby declared to be a prior lien and
charge upon the moneys in said "Water and sewer Revenue
Fund"superior to all other charges of any kind or
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nature,except the normal costs of maintenance
and operation of the waterworks utility of theCity,including the system of sewerage as a partthereof,exclusive of any City imposed taxes orpaymentsinlieuoftaxespayablefromthe
revenues of said utility which shall not be deemed
a normal cost of maintenance and operation of saidutility,and except the charges necessary for thepaymentoftheprincipalofandinterestontheoutstandingwaterandsewerrevenuebondsoftheiCityissuedunderdateofJuly1,1950,and exceptfurtherthatthelienandchargeuponthemoneysinsaid"Water and Sewer Revenue Fund"for theoutstanding"Water and Sewer Revenue Bonds,SeriesA,""Water and Sewer Revenue Bonds,1965,""WaterandSewerRevenueBonds,1967,"and the bonds ofthisissueshallbeonaparity.with the lien and
charge upon the moneys in said "Water and Sewer
Revenue Fund"for the payment of any additional
water and sewer revenue bonds hereafter issued on
a parity of lien with the outstanding "Water and
Sewer Revenue Bonds,Series A,""Water and Sewer
Revenue Bonds,1965,""Water and Sewer RevenueBonds,1967,"and the bonds of this issue in
accordance with the provisions of Section 14 ofCAOrdinanceNo.290,Section 13 of Ordinance No.532,$2 Section 13 of Ordinance No.573 and Section 14 of
Ordinance No..
This bond is one of a total issue of $1,100,000.00parvalueofbonds,all of like date,tenor andeffect,except for maturities and interest rates(if more than one interest rate is bid),all payablefromtheBondFundandallissuedbytheCityunderiandpursuanttothelawsoftheStateofWashington
and Ordinances Nos.655 and of the City for
the purpose of providing a part of the funds to paythecostofacquiring,constructing and installingcertainadditionsandimprovementstoandextensionsofthewaterworksutilityoftheCity,including thesystemofsewerageasapartthereof.
The City reserves the right to redeem the bondsofthisissueasawhole,or in part in inversenumericalorder,on November 1,1985,or on anysemiannualinterestpaymentdatethereafterat thefollowingpercentagesofpar,if redeemed on thefollowingdates,plus accrued interest to date ofredemptionineachcase,to-wit:
On November 1,1985,or .May l,1986 103 %
On November 1,1986,or May 1,1987 102-1/2%
On November 1,1987,or May 1,1988 102 %
On November 1,1988,or May 1,1989 101-1/2%
On November 1,1989,or May 1,1990 101 %
On November 1,1990,or May 1,1991 .100-1/2%On November 1,1991,and thereafter 100%(Par)
i Notice of any call for redemption of any of the bondspriortotheirstatedmaturitydatesshallbepublishedatleastonceintheofficialnewspaperoftheCitYr
not less than thirty nor more than forty-five days prior
to the call date.Notice of such redemption shall alsobemailedto(the principal underwriter who purchasesthebondsathisoritsprincipalplaceofbusiness orlocalofficewithintheStateofWashington)within thesameperiod.In addition,such redemption notice shall
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also be sent to Moody's Investors Service,Inc.,
and Standard &Poor's Corporation,at their offices
in New York,New York,but the mailing of such
notice to such corporations shall not be a condition
precedent to the redemption of such bonds.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.
The City of Moses Lake hereby covenants and
agrees with the holders of each and every one of
the bonds of this issue to fully carry out all
covenants and meet all obligations of the City
as set forth in this bond and in Ordinance No.
,to which ordinance reference is hereby made
as more fully describing the covenants with and
rights of holders of bonds of this issue.
The City has further bound itself to maintain
the waterworks utility of the City,including the
system of sewerage as a part thereof,in good
repair,working order and condition,.to operate
the same in an efficient manner and at a reasonable
cost and to establish,maintain and collect the
rates and charges for water and sanitary sewage
disposal service that will provide revenue equal to
at least 1.35 times the amount required in each
calendar year hereafter to pay the principal of and
interest on the outstanding July 1,1950,"Water and
Sewer Revenue Bonds"of the City,the outstanding
"Water and Sewer Revenue Bonds,Series A,"the
outstanding "Water and sewer Revenue Bonds,1965,"
the outstanding "Water and Sewer Revenue Bonds,1967,"
and the bonds of the issue of which this bond is one
and any bonds that may be issued on a parity with
the outstanding "Water and Sewer Revenue Bonds,Series
A,"the outstanding "Water and Sewer Revenue Bonds,
1965,"the outstanding "Water and Sewer Revenue Bonds,
1967,"and the bonds of this issue,after normal costs
of maintenance and operation of said waterworks
utility of the City,including the sewerage system
as a part thereof,have been paid,exclusive of any
City imposed taxes or payments in lieu of taxes
payable from the revenues of said utility which shall
not be deemed a normal cost of maintenance and operation
of said utility.
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,the ordinances of the City of
Moses Lake,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 Moses Lake,
Washington,has-caused this bond to be signed by
the facsimile signature of its Mayor and attested by
the manual signature of its City Clerk and its
corporate seal to be hereto affixed,and the interest
coupons attached to be signed with the facsimilès
signatures of those officials as of July 1,1973.
CITY OF MOSES LAKE,WASHINGTON
By (facsimile signature)
Mayor -
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ATTEST:
City Clerk
The interest coupons attached to the Bonds shall be in
substantially the following form:
i Coupon No.
*
On the FIRST DAY OF (MAY)(NOVEMBER),19 ,theCITYOFMOSESLAKE,WASHINGTON,will pay to thebeareruponpresentationandsurrenderofthis
coupon at the office of the Treasurer of the City
of Moses Lake,Washington,or,at the option oftheholder,at either fiscal agency of the StateofWashingtonintheCitiesofSeattle,Washington,
or New York,New York,the sum shown hereon inlawfulmoneyoftheUnitedStatesofAmericafromthespecialfundoftheCity,known as the "Moses
Lake,Water and Sewer Revenue Bond Fund,1973,"that sum being the interest then due on its "Water
ca and Sewer Revenue Bond,1973,"dated July 1,1973,and numbered .
CITY OF MOSES LAKE,WASHINGTON
By (facsimile signature)
Mayor
i ATTEST:
(facsimile signature)
City Clerk
The Bonds shall be printed on lithographed forms,shall
he signed by the facsimile signature of the Mayor and attested by
the manual signature of Ehe City clerk and shall have the seal of
the City affixed thereto and the interest coupons shall bear the
facsimile signatures of the Mayor and the City Clerk.
Section 14.The City reserves the right to issue
additional or refunding water and sewer revenue bonds,which shall
constitute a lien and charge upon the gross revenues of the System
on a parity of lien with the Outstanding Parity Revenue Bonds and
the Bonds,if the conditions set forth in Section 14 of Ordinance
No.290 shall be met and complied with at the time of the issuance
of such additional or refunding water and sewer revenue bonds,
which section is incorporated in this ordinance and by this reference
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made a part hereof and made applicable after the retirement of all
of said Outstanding Parity Revenue Bonds.
Section 15.In the event the City shall issue advance
refunding bonds pursuant .to the laws of the State of Washington 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
payable and to refund all such then outstanding Bonds and to pay
the costs of refunding,and shall have irrevocably set aside for
and pledged to such payment and refunding,moneys 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,and shall irrevocably make
provisions for redemption of such Bonds,then in that case all
right and interest of the owners or holders of the Bonds to be so
retired or refunded and the appurtenant coupons in the covenants
of this ordinance and in the grpss revenues of the System,funds
and accounts obligated to the payment of such Bonds,except the
right to receive the funds so set aside and pledged,shall thereupon
cease and become void and the City may then apply any moneys in any
fund or account established for the payment or redemption of such
Bonds or coupons to any lawful purposes as it shall determine.
In the event that the refunding plan provides that the
refunding bonds be secured by cash and/or direct obligations of
the United States of America or other legal investments pending the
prior redemption 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
Trethvocar
fu gp
anfor the prior hreddempti enr icthose Bond nincludeä
the refunding bonds payable from the gross revenues of the System
shall he included in the computation of coverage fcn:issuance of
-20-
water and sewer revenue bonds issued on a parity with the outstanding
Parity Revenue Bonds and the Bonds and in the annual computation of
coverage for determining compliance with the rate covenants.
Section 16.The-accrued interest,if any,received from
p n 1
prothe eBon
ce ed
odepoh
e f
hthee
B
dFu alanbethe
deposited in the "Water and Sewer Construction Fund,1972,"created
and established in the office of the City Treasurer by Ordinance
No.652.Moneys in said "waterand Sewer Construction Fund,1972,"
including moneys received by way of grants in aid of the water and
sewer projects and moneys contributed out of revenues or other funds
of the City available therefor,shall be used toward payment of the
cost of carrying out the improvements more specifically set forth
in Ordinance No.655 and in Section 2 of this ordinance,including
all costs relating to the issuance and sale of the Bonds,with the
proviso that in the event such available moneys are insufficient to
sharal
e tab sh
tthe i pr v men
nd
casvecified,the City Ceounnoil
for which moneys are available,and if after all of the specified
improvements have been completed any moneys remain in the "Water
and Sewer Construction Fund,1972,"such moneys may be used toward
the payment of the cost of carrying out such additional water and/or
sewer improvements as the City Council shall determine or may be
transferred to the Bond Fund as the City Council may determine.
Section 17.The Clerk of the City of Moses Lake is hereby
directed to publish in the Daily Journal of Commerce of Seattle,
Washington,at least once not less than ten days prior to the sale
date,a Notice of Bond Sale of the Bonds calling for bids for the
purchCasey thereofn osbee rLeackee edasah ngte f eil :00he Co clocclerpkmin
(PDST),on June 2_6,1973,at .which time the bids will be publicly
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opened and such bids will be considered and award made at a meeting
of the City Council to be held in the Congeil Chambers at 8:00 o'clock
p.m.(PDST),on the same date.
Each bidder shall seal its bid in an envelope with a
good faith deposit in the form of a certified or cashier's check
adethepayable to t
a t 22 00
00the ci
e su e
sfuLakbeidWashingalton,
fail or neglect to complete the purchase of the Bonds in accordance
with its bid within forty days following the acceptance thereof,and
the Bonds are ready for delivery,the amount of its deposit shall
be.forfeited to the City.
No bid agreeing to pay less than 98%of the par value
of the Bonds,plus accrued interest,will be considered.One or
more rates of interest may be fixed for the Bonds and must be in
multiples of 1/8 or 1/10 of 1%,or both.No more than one rate of
interest may be fixed for any single maturity.The maximum
differential between the lowest and the highest coupon rates named
no eaaychb nsh 1
adh n
111ment
in
eere thDe on,beanad bt ched
providing for additional or supplemental coupons will be rejected.
For the purpose of comparing bids only,the coupon rates
bid being controlling,each bid shall state the total amount of the
coupon interest over the life of the Bonds and the net interest cost
to the City,which shall be computed by deducting from such coupon
interest the premium,if any,or adding the discount,if any.Each
bid shall also state the net effective interest rate over the life
of the Bonds.The Bonds will be awarded to the bidder offering to
purchase all of the same at the lowest net interest cost to the City.
The City reserves the right to reject any and all bids
submitted and to waive any informalities or irregularities therein.
The printed Bonds will be delivered without cost to the
purchaser thereof within forty days of the date of acceptance of
the offer to purchase at the City Hall in Moses Lake,Washington,
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or at any bank in Seattle,Washington,at the purchaser's option.
Delivery at any other place within the United States will be made
at the purchaser's option and expense.
The opinion of Roberts,Shefelman,Lawrence,Gay &Moch,
municipal bond counsel of Seattle,Washington,approving the legality
w th ut
couanca
d
iltheb npdr
n
ld ohneedecliveredhe onhd .purchn
tigation
certificate in the usual form will also be included in the closing
papers.
The Notice of Bond Sale to be published shall provide
that copies of the Official Statement relating to the Bonds may
be obtained from the City Clerk or from Willard B.Vadman,the
go City's financial consultant,4910 N.E.85th Street,Seattle,
GL Washington 98115.
Section 18.This ordinance is declared to be one
necessary for the immediate preservation of the public peace,
property,health and safety of the people of the City of Moses
ha ,Washninna
sh
reebmerd ec ca
e
therbeeb ndeclaref
ro a
fandet
from and after its passage,approval and publication as provided by
law.
PASSED by the City Council of the City of Moses Lake,
Washington,at a regular open public meeting thereof and APPROVED
by the Mayor this 22nd day of May,1973,..
A
C
CITY LAKE,WASHINGTON
I FORM APPROVED:
/)?City Attorney
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