1393_00001ORDINANCE NO.1393
AN ORDINANCE of the City of Moses Lake,Washington,establishing terms,dater interestrate,maturity,and covenants common to cer-tain water and sewer utility revenue bondanticipationnotes,water and sewer utilityloanandgrantanticipationnotes,generaliobligationbondanticipationnotes,and localimprovementdistrictbondanticipationnotes;and accepting a proposal for all or any ofsuchnotesasarehereafterauthorizedbyordinance.
WHEREAS,the City of Moses Lake,Washington,(the "City")hasapprovedcertaincapitalimprovementprojectsidentifiedhereinbelow(the "Projects")for which short-term constructionfinancingisrequiredpendingtheissuanceofbondsorthereceiptoffederalgrantandstateloanproceedsforpermanentfinancingthereof;and
WHEREAS,it is now deemed to be in the best interest of theCitytoborrowmoneyandtoissueshorttermobligations(the"Notesn)for each of the Projects in accordance with the provisionofChapter39.50 RCW in anticipation of receipt of the proceeds ofapplicablebonds,federal grants and state loans therefor and tomakecertaincovenantsrelatingtotheissuanceofsuchNotes;and
WHEREAS,it is further deemed to be in the best interest oftheCitytoissuetheNotessimultaneouslytominimizethecostsoffinancingtheProjects;and
WHEREAS,the City has received a proposal for purchase of theNotes,or so much thereof as may be issued simultaneously,fromU.S.Bank of Washington,National Association,acceptance of whichisdeemedtobeinthebestinterestofthecity;NOW,THEREFORE,
THE CITY COUNCIL OF THE CITY OF MOSES LAKE,WASHINGTON,DOORDAINASFOLLOWS:
Section 1.Identification of the Projects.The City CounciloftheCityshallconsiderforpassageandapprovalordinancesauthorizingtheissuanceofthefollowingseriesofNotes:
A.Water and Sewer Utility Revenue Bond Anticipation Notesintheaggregateprincipalamountof$325,700 to pay part of thecostsoftheLagunaseweragesystemimprovementsmadeinUtilityLocalImprovementDistrictNo.3 (the "ULID 3 Notes");
B.Water and sewer Utility Revenue Loan and GrantAnticipationNotesintheaggregateprincipalamountof$758,600topaypartofthecostsoftheBasinHomesseweragesystemimprovementsmadeandtobemadeinUtilityLocalImprovementDistrictNo.4 (the "ULID 4 Notes");
C.Limited Tax General Obligation Bond Anticipation Notesintheaggregateprincipalamountof$200,400 to pay part of thecostsofthephaseoftheCity's sidewalk paving program which iscurrentlyunderconstruction(the "LTGO Notesn);and
D.Local Improvement District No.56 Bond Anticipation Notesintheaggregateprincipalamountof$35,300 to pay part of thecostsofthestreetimprovementsmadeandtobemadeinLocalImprovementDistrictNo.56 (the "LID 56 Notesu)
The ordinances authorizing the issuance of the respectiveseriesofNotesarereferredtohereinasthenAuthorizingOrdinances."
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Section 2.Terms of the Notes.The City Council hasdeterminedthatitisnecessaryandinthebestinterestsoftheCitytoborrowmoneyundertheauthorityofchapter39.50 RCW andsimultaneouslytoissuetheULID3Notes,the ULID 4 Notes,theLTGONotesandtheLID56Notes(collectively the nNotes").TheNotesshallbebearernotesdatedthedateoftheirdelivery,shallmatureMay1,1990,shall bear interest at the rate of 7.10%perannumandcomputedonthebasisofa360dayyearandactualnumber
of days elapsed,payable at maturity.The Notes shall be indenominationsof$5,000 or integral multiples of $5,000,exceptthatNoteNo.1 of each series of Notes shall be in the minimumamountof:(a)$5,700 for the ULID 3 Notes;(b)$3,600 for theULID4Notes;(c)$5,400 for the LTGO Notes;and (d)$5,300 for theLID56Notes.
The Notes shall be payable in lawful money of the United
States of America;and principal of and interest on the Notes shallbepayableuponpresentationandsurrenderoftheNotestotheCity
Treasurer.
The city shall have no right of redemption of the Notes prior
to their maturity date.
Section 3.Security and Source of Payment.The security and
source of payment of each series of Notes shall be as set forth in
the Authorizing ordinances.
Section 4.Tax Code Covenant.The City covenants that it
will apply the principal proceeds of each series of the Notes to
pay costs of the Project for which such series is issued and thatitwillmakenouseoftheproceedsoftheNotesatanytimeduringthetermoftheNotesorofanyadditionalnotesorbondshereafter
i issued to refund the respective series of Notes nor take any action
or refrain from any action as may be necessary to comply with theUnitedStatesInternalRevenueCodeof1986(the nCode")andapplicableregulationspromulgatedthereunderwhichwouldcausetheinterestontheNotesoranysuchadditionalnotesorbondstobecometaxableunderSections103,141,148 and 149 of said Code.
Section 5.Findings and Designation of Bank Eligibility.The
city has not issued,nor does it expect to issue,any obligationsin1989otherthantheNotesand,therefore,does not expect toissuemorethan$5,000,000 of obligations (including the Notes)in
1989;and the City Council hereby finds and determines that theNotesqualifyfortheexemptionfromrebateundertheCodeand
further that the Bonds are,and are hereby designated to be,qualified tax-exempt obligations pursuant to Section 265(b)(3)of
the Code relating to financial institutions,
section 6.Form and Execution of the Notes.The Notes shall
be typewritten,printed or lithographed on good bond paper.AtleastoneNoteshallbeissuedforeachseriesandtheNotesofeachseriesshallbeinformandsubstanceconsistentwiththisordinanceandtherespectiveAuthorizingOrdinancesandapproved
by the city Manager of the city.The Notes shall be signed by themanualsignatureoftheMayor,attested by the manual signature of
I the City Clerk and shall have the seal of the City impressed
thereon.
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Section 7.Lost or Destroyed Notes.In case any Note shallbelost,stolen or destroyed,the City may deliver a new note oflikedate,principal amount,maturity,interest rate,tenor andeffecttotheownerthereofuponpaymenttotheCityforthe
expenses and charges in connection therewith and upon its filingwiththeCityevidencesatisfactorytotheCityManagerthatsuchNotewasactuallylost,stolen or destroyed and of its ownershipithereof,and upon furnishing indemnity satisfactory to the cityManager.
Section 8.Note Redemption Funds.Redemption funds for theNotesshallbedesignatedbytherespectiveAuthorizingOrdinance.
Section 9.Application and Use of Note Proceeds.EachAuthorisingOrdinanceshalldesignatethefundintowhichtheprincipalproceedsoftherespectiveseriesofNotesshallbedepositedandtheuseofsuchproceeds.No accrued interest will
be received from the sale of the Notes.
Pending the expenditure of the principal proceeds of theNotes,the City may temporarily invest such proceeds in anyinvestmentspermittedbylawsoftheStateofWashington.The
investment earnings shall be retained in the respective funds intowhichtheNoteproceedswereoriginallydepositedandexpendedfor
the purposes of such fund,provided,however,that any Note orinvestmentproceedsremaininginsuchfunduponcompletionoftherespectiveProjectshallbedepositedintheredemptionfundforsuchseriesofNotesorforpaymentofanyloans,bonds oradditionalnotestheproceedsofwhichareappliedtopaysuch
Notes,and shall be expended within twelve months after completion
i of the respective Project.
Section 10.Sale of the Notes.The proposal of U.S.Bank
of Washington,National Association,of Seattle,Washington,dated
November 14,1989,to purchase the Notes,or so many thereof asshallbeauthorizedforissuancepursuanttotheprovisionsofthisordinance,at a price of par and on the terms set forth in saidproposal,this ordinance and the Authorizing Ordinances,is hereby
accepted,subject only to adoption and publication of therespectiveAuthorizingOrdinancesinthemannerprovidedbylaw.
Section 11.Authorisation to City Officials.The proper City
officials are hereby authorized to enter into such agreements,toexecutesuchinstruments,to print notes,to approve an official
statement or other disclosure document,to provide certifications,
and to take all actions they deem reasonable,necessary and propertocarryouttheProjectsandtheissuanceoftheNotes inconformitywiththeprovisionsofthisordinanceandtheAuthorizingOrdinances.
Section 12.Severability.If any one or more of thecovenantsoragreementsprovidedinthisordinancetobeperformed
on the part of the City shall be declared by any court of competentjurisdictiontobecontrarytolaw,then such covenant oricovenants,agreement or agreements shall be null and void and shallbedeemedseparablefromtheremainingcovenantsandagreements ofthisordinanceandshallinnowayaffectthevalidityoftheotherprovisionsofthisordinanceoroftheNotes.
Section 13.Declaration of Emergency and Effegtive Date.TheCityCouncildeclaresthattheproceedsoftheNotesareimmediatelyrequiredand,therefore,that an emergency exists;
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and this ordinance shall take effect and be in force five (5)days
after passage and publication as provided by law upon one reading
if two-thirds (2/3)of the entire City Council present vote in
favor of passage.
PASSED by the City Council and signed by its Mayor at aregularopenpublicmeetingonNovember14,1989.
CITY CLE
APPROVED AS TO FO :
C TY ATTORNEY
PUBLISHED:NOVEMBER 20,1989
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