1436_00001CITY OF MOSES LAKE,WASHINGTON
ORDINANCE NO.1436
AN ORDINANCE of the City Council of the City of MosesLake,Washington,authorizing the issuance and sale ofwaterandsewerrevenuebondsoftheCityintheprincipalamountof$230,000 for the purpose of providingfundstopaypartofthecostofcarryingouttheOimprovementsinUtilityLocalImprovementDistrictNo.3andrepayaninterfundloantherefor;fixing the date,form,interest rates,terms,maturities and redemptionoptionsofthebonds;providing for the payment of theprincipalofandinterestonsuchbondsoutoftherevenuesofthecombinedwaterandseweragesystem;adopting certain covenants safeguarding the payment ofsuchprincipalandinterest;reserving the right of theCitytoissuefuturerevenuebondsonaparitywithsuchbondsuponcompliancewithcertainconditions;andconfirmingthesalethereoftoseattle-NorthwestSecuritiesCorporation.
TABLE OF CONTENTS1
Section Title Page
Recitals ................i
1.Definitions ................1
a.Annual Debt Service .........1b.Assessments .............2c.Average Annual Debt Service .....2
O d.Bond Fund ..............2e.Bond Registrar ............2f.Bonds ................2
g.City ................2h.Code ................2i.Construction Fund ..........2j.Costs of Maintenance and Operation ..2k.Council ...............21.Debt service Account .........2m.Future Parity Bonds .........2n.Maximum Annual Debt Service .....2o.Net Revenue .............2
p.Outstanding Bonds ..........2q.Parity Bonds .............3r.Project ...............3s.Reserve Account ...........3t.Reserve Requirement .........3
u.Revenue Fund .............3v.Revenue of the System ........3w.System ................3x.Term Bonds ..............3y.Treasurer ..............32.ULID ................3
2.Compliance with Parity conditions .....3
3.Plan of Improvements ...........4
4.Authorization of the Bonds ........4
5.Place and Manner of Payment ........5
6.Prior Redemption .............5
'This Table of Contents is not a part of the Ordinance and isonlyforconvenienceofreference.
WE R SWEWEDEBOUS,1990WDORDIMCETable of Contents -i
ORDINANCE NO.1436
AN ORDINANCE of the city council of the city of MosesLake,Washington,authorizing the issuance and sale of
water and sewer revenue bonds of the City in theprincipalamountof$230,000 for the purpose of providing
funds to pay part of the cost of carrying out theimprovementsinUtilityLocalImprovementDistrictNo.30andrepayaninterfundloantherefor;fixing the date,form,interest rates,terms,maturities and redemptionoptionsofthebonds;providing for the payment of theprincipalofandinterestonsuchbondsoutoftherevenuesofthecombinedwaterandseweragesystem;adopting certain covenants safeguarding the payment ofsuchprincipalandinterest;reserving the right of theCitytoissuefuturerevenuebondsonaparitywithsuchbondsuponcompliancewithcertainconditions;andconfirmingthesalethereoftoSeattle-NorthwestsecuritiesCorporation.
WHEREAS,the City of Moses Lake,Washington,(the "City")nowoperatesandmaintainsacombinedwaterandseweragesystem(the"System");and
WHEREAS,by Ordinance No.1339,passed by the City Council oftheCityofNosesLake,Washington,(the "City")on October 11,1988,Utility Local Improvement District No.3 was formed,theimprovementsconsistingofaliftstation,force main and sewersidelateralsandappurtenancestoserveaportionofLagunaDrive
and sewage collection facilities and appurtenances to serve aportionofLakesideDrive(the "Improvements"),provision forpaymentofthecostsoftheimprovementsbyspecialassessmentOagainstthepropertyspeciallybenefitedwasmade,and the issuanceofwaterandsewerrevenuebondswasauthorized;and
WHEREAS,the total cost and expense of the Improvements
ordered by Ordinance No.1339 is in excess of $325,700.00 of which$264,371.05 has,by ordinance No.1360,been assessed against thepropertyspeciallybenefitedbysuchimprovementsandthebalanceistobepaidbytheCity;and
WHEREAS,pursuant to Ordinances No.1393 and No.1394,theCityissueditsWaterandSewerUtilityRevenueBondAnticipation
Notes (Utility Local Improvement District No.3)in the principalamountof$325,700 (the "Notes"),maturing May 1,1990,to pay thecostoftheImprovementsandredeemedsuchNotes,in part,by aninterfundloanfromtheCity's water and Sewer Construction Fund(the nLoan");and
WHEREAS,it is deemed in the best interest of the city and itsinhabitantstoissueandsellitswaterandsewerrevenuebondstopaycostsoftheImprovementsandtorepaytheLoan;and
WHEREAS,it is in the best interest of the City to accept theofferofSeattle-Northwest securities Corporation to purchase suchwaterandsewerrevenuebondsatthepriceandunderthetermsandconditionssetforthherein;NOW,THEREFORE,
O THE CITY COUNCIL OF THE CITY OF MOSES LAKE,WASHINGTON,DOORDAINasfollows:
Section 1.Definitions.As used in this ordinance,thefollowingwordsshallhavethemeaningshereinaftersetforthunlessadifferentmeaningclearlyappearsfromthecontext:
a."Annual Debt service"means,for any calendar year,all of the principal of and interest on the then outstanding BondsandFutureParityBondsdueinsuchyear,except the principal ofoutstandingTermBondsdueinsuchyear,plus all mandatoryredemptionorsinkingfundrequirementswhichmatureorcomedue
$$$2HDSWE RWEDEBONDS,19908080CENCE -1
b."Assessments"means all assessments levied in anyULIDheretoforeorhereaftercreatedfortheacquisitionorconstructionofadditionsandimprovementstoandextensionsoftheSystemifsuchassessmentsarepledgedtobepaidintotheBondFund,including any installments of assessments and any interestorpenaltieswhichmaybeduethereon.
c."Average Annual Debt Service"means the sum of theOAnnualDebtServiceonthethenoutstandingParityBondsdividedbythenumberofyearstothelastmaturityormandatoryredemptiondatethereof.
d."Bond Fund"means that special fund of the Cityknownasthe"Water and Sewer Revenue Bond Fund,1985"created byOrdinanceNo.1184 of the City for the payment of the principal ofandinterestontheOutstandingBonds,the Bonds and all FutureParityBondsoftheCity.
e."Bond Registrar"means the fiscal agencies of theStateofWashingtoninSeattle,Washington,and New York,New York,in their capacity as registrar and paying agent for the Bonds.
f."Bonds"means the $230,000 par value of the "WaterandSewerRevenueBonds,1990"issued and sold pursuant to thisordinance.
g.nCity"means the City of Moses Lake,Washington,amunicipalcorporationdulyorganizedandexistingunderandbyvirtueofthelawsoftheStateofWashington.
h."Coden means Section 103 of the Internal RevenueCodeof1954astotheOutstandingBondsandSections103,141,147,148,149 and 150 of the Internal Revenue Code of 1986 as totheBondsandanyFutureParityBonds,and applicable regulationsandtemporaryregulationspromulgatedthereunder.
i."Construction Fund"means the Utility LocalImprovementDistrictNo.3 Fund of the city (Treasurer's AccountNo.461).
j."Costs of Maintenance and Operation"means allnecessaryoperatingexpenses,current maintenance expenses,expenses of reasonable upkeep and repairs,and insurance andadministrativeexpense,but excludes depreciation,payments fordebtserviceorintoreserveaccounts,costs of capital additionstoorreplacementsoftheSystem,municipal taxes or payments totheCityinlieuoftaxes.
k.nCouncil"means the governing body of the City asthesameshallbedulyandregularlyconstitutedfromtimetotime,
1."Debt Service Accountu means the account of thatnamecreatedintheBondFundforthepaymentofprincipalof,premium,if any,and interest on the Parity Bonds.
m.nFuture Parity Bonds"means all revenue bonds of theCityissuedafterthedateoftheissuanceoftheBondsandhavingalienupontheRevenueoftheSystemforthepaymentoftheprincipalthereofandinterestthereonequaltothelienuponsuch0revenueforthepaymentoftheprincipalofandinterestontheBonds.
n."Maximum Annual Debt Service"means the maximumamountAnnualDebtservicewhichwillbecomedueinanyfutureyearonthenoutstandingparitybonds.
o.nNet Revenuen means the Revenue of the System lesstheCostsofMaintenanceandOperation.
p."Outstanding Bonds"means the presently outstandingrevenuebondsoftheCity,described as follows:
WE MDSHE BWUE80ES,1990MDGRDIMcE-2
Principal AmountDateofOutstanding AuthorizingSeriesIssueasof06/01/90 Ordinance
Water and Sewer 11/01/85 $5,075,000 No.1184 adoptedRevenueRefunding10/23/85Bonds,1985
q."Parity Bondsn means the outstanding Bonds,theBondsandanyFutureParityBonds.
r."Project"means the improvements described inSection2ofthisordinanceincludinganycostsoffinancingsuchimprovements,
s."Reserve Account"means the account of that namecreatedintheBondFundforthepurposeofsecuringsecurethepaymentoftheprincipalofandinterestontheParityBonds.
t."Reserve Requirement"means the amount which is thelesserof1.25 times the Average Annual Debt Service or the MaximumAnnualDebtService.
u."Revenue Fund"means that Water and sewer RevenueFundoftheCitycreatedbyOrdinanceNo.135 of the City.
v."Revenue of the System"means all earnings,revenuesandmoniesreceivedbytheCityfromoronaccountoftheoperationoftheSystem,including the income from investments on money intheRevenueFundandtheBondFundorfromanyotherinvestmentthereof,including any federal or state reimbursements or operatingexpensestotheextentsuchexpensesareincludedascosts ofMaintenanceandOperation,but not including Assessments or grantsforcapitalpurposes.
w."Systemn means the existing sanitary sewagecollectionandtreatmentsystemoftheCity,including facilitiesforthecollectionanddisposalofstormwaterrunoff,as it nowexistsandasitmaylaterbeaddedto,extended and improved,andtheexistingwatersupplyanddistributionsystemoftheCity,asitnowexistsandmaylaterbeaddedto,extended and improved,foraslongastheBondsremainoutstanding.
x."Term Bonds"means any Parity Bonds identified assuchintheordinanceauthorizingtheissuance'thereof,the paymentofwhichisprovidedforbyarequirementformandatorydepositsofmoneyintotheBondFundinaccordancewithamandatorysinkingfundrequirement.None of the Bonds are Term Bonds.
y."Treasurer"means the Finance Director or such otherofficeroftheCityastheCouncilshalldesignatebyordinancetocarryoutthedutiesofacitytreasurerunderthelawsoftheStateofWashingtonorordinancesoftheCity.
2."ULID"means any utility local improvement districtoftheCityheretoforeorhereaftercreated,
section 2.Compliance with Parity conditions.The City hasreservedtherighttoissueadditionalbondsonaparityoflien0withtheOutstandingBonds,providing that,at the time of issuanceofsuchparitylienbonds,the conditions set forth in Section 9,of Ordinance No.1184 (the nParity Provisions")are completely metandcompliedwithpriortotheissuanceofsaidparitybonds.AsrequiredbytheParityProvisions,the City Council hereby findsanddeterminesasfollows:
First,that the Bonds are being issued for the purposeofacquiring,constructing and installing additions andimprovementstoandextensionsandbettermentsof,the System.
BR MDS 80ES,1990MD ORDIREE-3
Second,that all payments required by Ordinance No.1184tohavebeenmadeintotheBondFundandnodeficiencyexistsinsaidFund.
Third,that this ordinance provides that all AssessmentsleviedinULIDNo.3 shall be paid directly into the Bond Fund.
Fourth,that at the time of the issuance and delivery oftheBondstherewillbeonfilewiththeCityacertificateof
,P.E.,an independent licensed professional0engineerexperiencedinthedesign,construction and operation ofmunicipalutilitiesthattheNetRevenueofthesystem(adjustedaspermittedbytheParityProvisions)together with AssessmentsrequiredtobepaidintotheBondFundequalsatleast1.25 timesAnnualDebtServiceontheOutstandingBondsandtheBondsand,further,that the historical Net Revenue (adjusted as permitted bytheParityProvisions)equals at least 80%of such Annual Debtservice.
Fifth,that this ordinance provides that approximatelyequalannualamounts,as may be necessary together with othermoniestherein,will be deposited in the Reserve Account so thatanamountequaltotheReserveRequirementforallthethenoutstandingParityBondswillbeestablishedintheReserveAccountbyJune1,1995.
The limitations and conditions contained in the ParityProvisionshavingbeencompliedwithinthematteroftheissuanceoftheBonds,the payments required by this ordinance to be madeintotheBondFundandAccountsthereinforthepurposeofpayingandsecuringthepaymentoftheprincipalofandinterestontheBondsshallconstitutealienupontheRevenueoftheSystemequalinranktothelienandchargethereonofthepaymentsrequiredtobemadeintosaidBondFundtopayandsecurethepaymentoftheprincipalofandinterestontheOutstandingBonds.
Section 3.Plan of Improvements.For the purposes offinancingpartofthecostsoftheimprovementsheretoforeorderedbyOrdinanceNo.1339 of the City creating Utility LocalImprovementDistrictNo.3 and consisting of a lift station,forcemainandsewersidelateralsandappurtenancestoserveaportionofLagunaDriveandsewagecollectionfacilitiesandappurtenancestoserveaportionofLakesideDrive(the "Improvements")and ofrepayingthebalanceoftheinterfundloanfromtheCity'sWaterandSewerconstructionFund(Treasurer's Account No.477)(the "Loan")heretofore made to pay and redeem the Water and SewerUtilityRevenueBondAnticipationNotes(Utility Local ImprovementDistrictNo.3)maturing May 1,1990,heretofore issued pursuanttoOrdinancesNo.1393 and No.1394 to pay costs of theImprovements.
The total cost and expense of the Improvements is in excessof$325,700.00 of which $264,371.05 has,by Ordinance No.1360,been assessed against the property specially benefited by suchimprovements.The Improvements,repayment of the Loan and thecostsofissuingtheBondshavebeenhereinbeforedefinedasthe"Project."Costs of the Project shall be paid from the proceedsoftheBonds,from assessments in ULID No.3 heretofore collectedandfromRevenueoftheSystem.
O Section 4.Authorization of Bonds.For the foregoingpurposes,the City shall issue and sell its Water and Sewer RevenueBonds,1990 in the principal amount of $230,000 (the nBonds").TheBondsshallbedatedJuly1,1990,shall be in the denomination of$5,000 each or any integral multiple of $5,000,provided no Bondshallrepresentmorethanonematurity,shall be registered as tobothprincipalandinterest,and shall bear interest at the ratessetforthbelowfromsuchdateuntilthebondbearingsuchinteresthasbeenpaidoritspaymentdulyprovidedfor,payable July 1,1991,and semiannually on the first days of each January and Julythereafter.The Bonds shall be numbered separately in the mannerandwithanyadditionaldesignationastheBondRegistrardeems
Em MDSWEmm08Bom,1990BUDElBEE -4
necessary for purposes of identification,and shall mature onJuly1ofeachofthefollowingyearsinthefollowingamountsandshallbearinterestatthefollowingrates:
Maturity Year Maturity Amount Interest Bate
1991 $30,000 6.30%1992 30,000 6.40%1993 30,000 6.50%1994 30,000 6.60%1995 25,000 6.70%1996 25,000 6.80%1997 20,000 6.90%1998 20,000 7.00%1999 20,000 7.10%
Upon surrender thereof to the Bond Registrar,the Bonds areinterchangeableforBondsinanyauthorizeddenominationofanequalaggregateprincipalamountandofthesameinterestrateandmaturity.Bonds may be transferred only if endorsed in the mannerprovidedthereonandsurrenderedtotheBondRegistrar.The ownerofanyBondredeemedinpartwillreceive,upon surrender of suchBond,a new Bond in principal amount equal to the unredeemedportionoftheBondsosurrendered.Such exchange or transfershallbewithoutcosttotheownerortransferee.
The city may deem the person in whose name each Bond isregisteredtobetheabsoluteownerthereofforthepurposeofreceivingpaymentoftheprincipalofandinterestonsuchBondandforanyandallotherpurposeswhatsoever.
Section 5.Place and Manner of Payment.Both principal ofandinterestontheBondsshallbepayableinlawfulmoneyoftheUnitedStatesofAmericatotheregisteredownerorownersthereof.Principal of the Bonds shall be payable upon presentation andOsurrenderoftheBondsbytheregisteredownerornomineeofsuchownerattheofficeofeitherofthefiscalagenciesoftheStateofWashingtoninthecitiesofseattle,Washington,and New York,New York (the "Bond Registrar").Interest on the Bonds shall bepaidbycheckordraftmailedtotheregisteredownerthereofornomineeofsuchownerattheaddressappearingontheregistrybooksoftheBondRegistraronthe15thdayofthemonthprecedingtheinterestpaymentdate.
The Bonds shall be obligations only of the Bond Fund and shallbepayableandsecuredasprovidedherein.The Bonds are notgeneralobligationsoftheCity.
Section 6.Prior Redemption.The Bonds maturing in the years1992through1998,inclusive,are not subject to redemption priortomaturity.The City has reserved the right to redeem the BondsmaturingonorafterJuly1,1999,in whole,or in part (maturitiestobeselectedbythecityandbylotwithinamaturityinsuchmannerastheBondRegistrarshalldetermine),on any interestpaymentdateonorafterJuly1,1998,at a price of 100%of theparamountthereof,plus accrued interest,if any,to the date ofredemption.
Notice of any such intended redemption shall be given not lessthanthirty(30)days nor more than sixty (60)days prior to the0datefixedforredemptionbyfirstclassmail,postage prepaid,totheregisteredownerofanyBondtoberedeemedattheaddressappearingontheregistrationbooksoftheBondRegistrar.Therequirementsofthissectionshallbedeemedtobecompliedwithwhennoticeismailedashereinprovided,whether or not it isactuallyreceivedbytheownerofanyBond.Notice shall also bemailedtoSeattle-Northwest Securities Corporation at its mainofficeinSeattle,Washington,or to its successor in business,ifany,at its main office and to Standard &Poor's Corporation andMoody's Investors Service in New York,New York,or their businesssuccessors,but the mailing of these three notices shall not be aconditionprecedenttothecalloftheBondsforredemption.
Em MDSWEWEDEMDS,890 HD ORDIMCI-5
Interest on any Bonds so called for redemption shall cease onthedatefixedforredemptionunlesstheBondorBondssocalledarenotpaidinfulluponpresentationmadepursuanttosuchcall.
The City reserves the right to purchase any of the Bonds intheopenmarketforretirementonlyatanytimethatRevenueoftheSystemisavailableafterprovidingforthepaymentsrequiredbyparagraphsFirstthroughSixthofSection11ofthisordinanceat
0 any price not to exceed the par amount of the Bonds so purchasedplusaccruedinteresttothedateofsuchpurchase.
Section 7.Bond Fund and Accounts.A special fund of theCityknownasthe"City of Moses Lake Water and Sewer Revenue BondFund,1985"(hereinbefore defined as the "Bond Fund")washeretoforecreatedintheofficeoftheTreasureranddividedintoaDebtServiceAccountandaReserveAccount.The Bond Fund is tobedrawnuponforthesolepurposeofpayingtheprincipalof,premium,if any,and interest on the Bonds and any Future ParityBondsasthesameshallbecomedue.
All monies in the Bond Fund may be kept in cash or depositedininstitutionspermittedbylawinanamountineachinstitutionnotgreaterthantheamountinsuredbyanydepartmentoragency oftheUnitedStatesGovernmentormaybeinvestedorreinvestedinanylegalinvestmentpermittedtotheCitybylaw.Such invest-ments shall mature at such time or times as necessary to payprincipalofandinterestonParityBondsasthesamebecomedue,to redeem Term Bonds on the applicable mandatory redemption datessetforthineachordinanceauthorizingtheissuanceofTermBondsandtomaketransfersfromtheReserveAccountasprovidedinsubsectionBofthissection.Investments of monies in the BondFundshallbeidentifiedtotheBondFund,and such monies shallnotbecommingledwithothermoniesofthecityforanypurposewhatsoever.
Interest earned on any such investments or on such bankdepositsshallbedepositedinandbecomeapartoftheReserveAccountuntiltheReserveRequirementshallhavebeenaccumulatedtherein,after which such interest shall be applied to the DebtServiceAccountortheRevenueFundinthesamemannerashereinafterprovidedforotherexcessamountsintheReserveAccount.
A.Debt Service Account.So long as Bonds are outstandingagainsttheBondFund,the City irrevocably binds and obligatesitselfanddirectstheTreasurertosetasideandpayintotheBondFundallAssessmentspaidinUtilityLocalImprovementDistrictsNo.1,No.2 and No.3 and out of the Revenue of the SystemdepositedintheRevenueFundthefollowingfixedamountsnecessarytopaytheprincipalofandinterestontheBondsasthesamerespectivelybecomedueandpayable:
(1)On or before the 20th of each month,beginning withthemonthofJuly,1990,and continuing through June,1991,an amount together with other monies available in the DebtServiceAccountthereforequalto1/12 of the interest on theBondscomingdueonJuly1,1991.
(2)On or before the 20th of each month,beginning with0themonthofJuly,1990,and continuing through June,1991,an amount together with other monies available in the DebtServiceAccountthereforequalto1/12 of the principal of theBondsmaturingonJuly1,1991.
(3)On or before the 20th day of each month,beginningwiththemonthofJuly,1991,and continuing until all of theBondsarepaidordulyprovidedfor,an amount together withothermoniesavailableintheDebtServiceAccountthereforequalto1/6 of the interest next coming due on the Bonds;and
am E SEMEmdE BONDS,199020110ORDmiCE-6
(4)On or before the 20th day of each month,beginningwiththemonthofJuly,1991,and continuing until June 1,
1999 or such earlier date that all of the Bonds are paid ordulyprovidedfor,an amount together with other moniesavailableintheDebtServiceAccountthereforequalto1/12oftheprincipalnextcomingdueontheBonds.
B.Reserve Account.The city hereby covenants and agreesthatitwillpayoutoftheRevenueFundintotheReserveAccount
0 in the Bond Fund,in five substantially equal annual payments suchamountswhich,with other monies available therein,will equal,bynotlaterthanJune1,1995,the Reserve Requirement.
The City covenants and agrees that it will at all timesthereaftermaintainintheReserveAccountanamountequaltotheReserveRequirement,except for withdrawals therefrom to maRe updeficienciesintheDebtServiceAccountasauthorizedbythissubsection.Monies in the Reserve Account may be,and so long asnecessaryundertheCodeshallberwithdrawnwithinthirtydaysaftereachprincipalpaymentdateoroptionalormandatoryredemptiondateinsuchamountasisnecessarytoreducethebalanceintheReserveAccounttotheamountoftheReserveRequirement.Amounts so withdrawn from the Reserve Account shallbedepositedintheDebtServiceAccount,equal to principal of,premium,if any,and interest on outstanding Parity Bonds to becomedueortobepaidpursuanttoacallformandatoryoroptionalredemptionduringthesucceedingtwelvemonths;and any amounts inexcessthereofshallbedepositedintheRevenueFund.
In the event that there shall be a deficiency in the DebtServiceAccountintheBondFundtomeetmaturinginstallmentsofeitherprincipaloforinterestontheParityBondsoutstanding,such deficiency shall be made up from the Reserve Account by thewithdrawalofcashtherefrom.Any deficiency created in theReserveAccountbyreasonofanysuchwithdrawalshallthenbemadeupfrommoniesfromtheRevenueFundand/or Assessments which shallbefirstavailableaftermakingnecessaryprovisionfortherequiredpaymentsintotheDebtServiceAccount.
In the event any Parity Bonds are ever refunded,the moniessetasideintheReserveAccounttosecurethepaymentofsuchParityBondsmaybeusedtoretireParityBonds,or may betransferredtoanyotherreserveaccountwhichmaybecreatedtosecurethepaymentofthebondsissuedtorefundsuchParityBonds,as long as the monies left remaining in the Reserve Account are atleastequaltotheReserveRequirementfortheremainingParityBonds.
If the City shall fail to set aside and pay into the Bond Fundtheamountswhichithasobligateditselfbythissectiontosetasideandpaytherein,the holder of any Bond may bring suitagainsttheCitytocompelittodoso.
Section 8.Priority of Lien.The Assessments in UtilityLocalImprovementDistrictsNo.1,No.2 and No.3 and amountspledgedtobepaidoutoftheRevenueFundintotheDebtServiceAccountintheBondFund,and pledged to be paid into the ReserveAccountintheBondFund,are hereby declared to be a prior lienandchargeuponthemoneyintheRevenueFundsuperiortoallchargesofanykindornature,except the Costs of Maintenance and0OperationoftheSystem,and shall be equal in rank with the chargeandlienuponsuchRevenueandAssessmentsforanyFutureParityBonds.
The Council hereby declares that,in fixing the amounts to bepaidintotheBondFundandtheReserveAcntthereinashereinbeforeprovided,it has exercised due regard for the CostsofMaintenanceandOperationoftheSystemandhasnotobligatedtheCitytosetasideintotheBondFundandReserveAccount agreateramountorproportionoftheRevenueoftheSystemthaninitsjudgmentwillbeavailableoverandabovetheCostsofMaintenanceandOperationoftheSystem.
WR R SMBmm0EBONDS,1990BOND0MMCI -7
Section 9.Covenants.The City hereby covenants and agreeswiththeownerandholderofeachoftheBondsasfollows:
A.Rates and Charges;Coverage Requirement.It will fix,maintain and collect rates and charges for the use of the servicesandfacilitiesandallcommoditiessold,furnished or supplied bytheSystemtoensurethattheRevenueofthesystem,together withanyAssessments,is sufficient to pay all Costs of Maintenance and0OperationanddebtserviceontheBonds,as well as any otheramountsthattheCityisobligatedtopayfromtheRevenueoftheSystem,and that the Net Revenues together with Assessments in eachcalendaryearwillequalatleast1.25 times Maximum Annual DebtService.
B.Maintenance and Operation Standards.It will at alltimesmaintainandkeeptheSystemingoodrepair,working orderandcondition,and will at all times operate such utility and thebusinessinconnectiontherewithinanefficientmannerandatareasonablecost.
C.Sale or Disposition of System.It will not sell,lease,mortgage or in any manner encumber or dispose of all the propertyoftheSystem,unless provision is made for the payment into theBondFundofasumsufficienttopaytheprincipalofandinterestonallParityBondsthenoutstanding;and it will not sell,lease,mortgage or in any manner encumber or dispose of any part of thepropertyofthesystemthatisused,useful and material to theoperationthereof,unless provision is made for the replacementthereof,or for payment into the Bond Fund of an amount of therevenuereceivedwhichshallnotbelessthananamountwhichshallbearthesameratiototheamountofthethenoutstandingParityBondsastherevenueavailablefordebtserviceforsuchoutstandingParityBondsforthetwelvemonthsprecedingsuchsale,lease,encumbrance or disposal from the portion of the utilityOsold,leased,encumbered or disposed of bears to the revenueavailablefordebtserviceforoutstandingParityBondsfromtheentireSystemforthesameperiod.Any such money so paid into theBondFundshallbeusedtoretiresuchoutstandingParityBondsattheearliestpossibledate.
D.Books and Accounts;Annual Reports.It will,while anyParityBondsremainoutstanding,keep proper and separate accountsandrecordsinwhichcompleteandseparateentriesshallbemadeofalltransactionsrelatingtotheSystem,and it will prepareand,at the written request of the original purchaser or purchasersofParityBondsoranysubsequentholdersorregisteredownersthereofitwillfurnishtosuchholdersorregisteredowners,complete operating and income statements of the System inreasonabledetailshowingthefinancialconditionofthewaterandsewerdepartmentsoftheCityandcompliancewiththetermsandconditionsofthisordinancenotmorethan120daysafterthecloseofsuchcalendaryear;and it will grant any holders or registeredownersofatleast25%of the then outstanding Bonds the right atallreasonabletimestoinspectthesystemandallrecords,accounts and data of the City relating thereto.Upon request ofanyholderorregisteredownerofanyoutstandingParityBonds,itwillalsofurnishtosuchholderorregisteredowneracopyofthemostrecentlycompletedauditoftheCity's accounts by the StateAuditorofWashington,or such other audit as is authorized by lawinlieuthereof.
E.No Free service;Enforcement of Payment of Rates.Itwillnotfurnishwaterorsanitarysewagedisposalserviceoranyotherservicesofthesystemtoanycustomerwhatsoeverfreeofchargeandwillpromptlytakelegalactiontoenforcecollectionofalldelinquentaccounts.
F.Assessments.It will promptly collect all outstandingAssessmentsandpaythesameintotheBondFund.
WE E SER WHOEMDS,1990MDORDIRES-8
G.Insurance.It will carry the types of insurance on thepropertyoftheSysteminamountsnormallycarriedbyprivatewaterandsewercompaniesengagedintheoperationofwaterandseweragesystemsorwillimplementaself-insurance program with RevenuesoftheSystemandotherlegallyavailablemonieswhichshall beadequate,in the judgment of the Council,to protect the City andtheownersoftheParityBondsagainstloss.The cost of suchinsuranceorpaymentsintoaself-insurance program fund forRevenueofthesystemshallbeconsideredpartoftheCostsof0MaintenanceandOperation.If,as and when the United States ofAmericaorsomeagencythereofshallprovideforwarriskinsurance,the City further agrees to take out and maintain suchinsuranceonallorsuchportionoftheSystemonwhichsuchwarriskinsurancemaybewritteninanamountoramountstocoveradequatelythevaluethereof.
H.Adequate Revenue.It will maintain in the Revenue Fund,after making the monthly payments into the Bond Fund as hereinaboveprovided,monies sufficient to meet the Costs of Maintenance andOperationonacurrentbasisandwillpayallcostsofMaintenanceandOperationandthedebtservicerequirementsoftheParityBondsandotherwisemeettheobligationsoftheCityhereinsetforth.
I.Special Funds.It will not create any special fund orfundstopayorsecurethepaymentofdebtserviceon,or authorizeorissue,any other revenue bonds,warrants or obligations whichwillrankonaparitywithorhaveanypriorityoverthepaymentsintoorthemoniesintheBondFundtexceptasprovidedinSection9ofthisordinancerelatingtotheissuanceofFutureParityBonds,nor will it create or permit any other lien orencumbrancewhichmaybereasonablyexpectedtoimpairthesecurityoftheBonds.
J.Tax Code Covenant.
(1)So long as any of the Water and Sewer RevenueRefundingBonds,1985 of the City dated November 1,1985,(the n1985Bonds")shall remain outstanding,it will make no use of theproceedsofthe1985Bondsorotherfundsofthecityatanytimeduringthetermofthe1985Bondswhich,if such use had beenreasonablyexpectedatthedatethatthe1985Bondsareissued,would have caused such 1985 Bonds to be arbitrage bonds within themeaningofSection103(c),or which would cause the Bonds to becomeindustrialdevelopmentbondswithinthemeaningofSection103(b),of the United states Internal Revenue Code of 1954,as amended,and applicable regulations thereunder.
(2)So long as any of the Bonds remain outstanding,theCitycovenantsthatitwillapplytheprincipalproceedsoftheBondstothecostsoftheProjectandthatitwillmakenouseoftheproceedsoftheBondsatanytimeduringthetermoftheBondsnortakeanyactionorrefrainfromanyactionasmaybenecessarytocomplywiththeUnitedStatesInternalRevenuecodeof1986,andapplicableregulationspromulgatedthereunderwhichwouldcausetheinterestontheBondstobecometaxableunderSections103,141,148 and 149 of said Code.
Isection10.Defeasance.In the event that monies areirrevocablysetasideinaspecialescrowfund(the nEscrow Fund")on the terms and conditions set forth in this Section 10 to refund0alloranypartoftheBonds,with respect to the Bonds sorefunded:
A.Payments into the Bond Redemption Fund for paymentofprincipalofandinterestontheBondsshallbediscontinued;
B.The Bonds shall cease to be entitled to any lien,benefit or security of this ordinance except the right to receivethemoniessosetaside;and
C.The Bonds shall be deemed not to be outstandingunderthisordinance;provided,that any Bonds so refunded shall
Em m SUNWHE 80108,1990BONDUDISCE -9
be deemed to be outstanding for the purpose of transfers,exchanges
or the replacement of lost or destroyed Bonds pursuant to thisordinance.
The Escrow Fund shall be established with a corporate fiduciaryqualifiedtodobusinessinthestateofWashingtonand:
(1)Monies set aside in said Escrow Fund shall beirrevocablypledgedtopayprincipalofandredemptionpremium,if any,and interest on the refunded Bonds;and
(2)Said monies shall be held in cash and/or "governmentobligations"as defined in Chapter 39.53 RCW;
(3)Such government obligations shall mature at suchtimeortimesandbearinterestatsuchratestoprovidewithoutanyreinvestmentthereofsufficientamountstopayinterestontherefundedBondswhendueandtoredeemandretiretherefundedBondsattheirrespectivematuritydates,mandatory redemption dates,and/or pursuant to an irrevocablecallofanyorallsuchrefundedBondsforredemption inaccordancewiththeirterms;and
(4)The sufficiency of such cash and governmentobligationstomakesuchpaymentsshallhavebeenverified byanindependentcertifiedpublicaccountant.
Section 11.Revenue Fund and Priority of Payment.Pursuanttosection7ofOrdinanceNo.135«the Revenue Fund was createdintowhichallgrossearningsandrevenueoftheSystemmust bepaidandcollected.All Costs of Maintenance and Operation of thesystem,all costs of addition,improvements,betterments andrepairstoandreplacementsandextensionsoftheSystem(exceptwhenthesamearefinancedbytheissuanceofbonds,couponwarrants,or warrants drawn on other special funds of the City),and all payments which may be required by any ordinances of theCitypassedsubsequenttoOrdinanceNo.135 to be made into anybondredemptionfundand/or reserve fund or account created for thepurposeofpayingorguaranteeingthepaymentoftheprincipalofandinterestonanywaterandsewerrevenuebondsorcouponwarrantsoftheCityissuedsubsequenttosuchOrdinanceNo.135mustbepaidoutoftheRevenueFund.Monies in such fund shallbeusedonlyforthepurposesandinthefollowingorderofpriority:
First:To pay Costs of Maintenance and Operation of theSystem;
Second:To pay interest on the Outstanding Bonds,theBondsandanyFutureParityBonds;
Third:To pay the principal of the outstanding Bonds,the Bonds and any Future Parity Bonds and to pay and redeem TernBondsinaccordancewithanymandatoryredemptionprovisionscontainedintheordinanceauthorizingsuchTernBonds;
Fourth:To make all payments required to be made intotheBondFundforthepaymentoftheprincipalofallTermBondswhicharenotsubjecttomandatoryredemptionpriortomaturity;
0 Fifth:To make all payments required to be made into theReserveAccountintheBondFundcreatedtosecurethepaymentoftheOutstandingBonds,the Bonds and any Future Parity Bonds;
Sixth:To make all payments required to be made into anyredemptionfundanddebtserviceaccountorreserveaccountcreatedtopayandsecurethepaymentoftheprincipalofandinterestonanybonds,notes,warrants or other obligations of the city havingalienupontheRevenueoftheSystemjuniorandinferiortothelienthereonforthepaymentoftheprincipalofandinterestontheOutstandingBonds,the Bonds and Future Parity Bonds;
am W SURREmliRoms,1990IICEORDIBICE-10
Seventh:To retire by redemption or purchase in the openmarketanyoutstandingbonds,notes,warrants or other obligationsoftheRevenueFund,to make necessary additions,betterments,improvements and repairs to or extensions and replacement of theSystem,or for any other lawful purposes.
Monies in the Revenue Fund,until needed,may be invested inanylawfulinvestment,and the earnings from such investments shallbedepositedintheRevenueFund.
Section 12.Future Parity Bonds.The city reserves the rightforthepurposeof:
(1)acquiring,constructing and installing additions andimprovementstoandextensionsandbettermentsof,acquiring
necessary equipment for,or making necessary replacements ofequipmentorcapitalimprovementstotheSystem;or
(2)exchanging or purchasing and retiring prior to orattheirmaturityanyoutstandingwaterandsewerrevenuebondsoftheCity;
to issue additional and/or refunding water and sewer revenue bonds(hereinbefore defined as "Future Parity Bonds")and to makepaymentsintotheBondFundforthepaymentofsuchFutureParityBondsfromtheRevenueoftheSystemdepositedintheRevenueFund,together with Assessments pledged to the payment of such FutureParityBonds,sufficient to pay the principal of and interest onsuchFutureParityBonds,which payments may rank equally withpaymentsfromtheRevenueofthesystempledgedtobemadeintotheBondFundfortheOutstandingBondsandtheBondsiftheCitymeetsandcomplieswiththefollowingconditions:
(a)All payments then required by this ordinance or anyotherordinanceoftheCitypertainingtothethenoutstandingOParityBondsshallhavebeenmadeintotheBondFund,and that nodeficiencyexiststherein;
(b)If one or more utility local improvement districtsshallbecreatedinconnectionwiththeissuanceofsuchFutureParityBonds,the ordinance providing for the issuance of suchFutureParityBondsshallprovidethatallAssessmentsleviedthereinshallbepaiddirectlyintotheBondFund;
(c)At the time that Future Parity Bonds are issued,thecityshallhaveonfileacertificatefromanindependentlicensedprofessionalengineerorcertifiedpublicaccountantshowingthatinhisorherprofessionalopiniontheNetRevenueinanytwelveconsecutivemonthsoutoftheeighteenmonthsimmediatelyprecedingtheissuanceofsuchFutureParityBondstogetherwithAssessmentsequalsatleast1.25 times Annual Debt Service on outstandingParityBondsandtheproposedFutureParityBonds;and so long asanyOutstandingBondsareinsuredpursuanttothemunicipalbondinsurancepolicyreferredtoinSection2ofOrdinanceNo.1184 oftheCity,such certificate shall also show that the historical NetRevenue,as adjusted pursuant to this paragraph,(exclusive ofAssessments)equals at least eighty percent (80%)of such AnnualDebtService.In determining whether the City meets the aforesaidrequirement,the historical Net Revenue may be adjusted to reflect:
0 (1)the revenues to be derived from additional customersanticipatedtobeservedbytheimprovementstobeconstructedwiththeproceedsofsuchFutureParityBonds,but only to theextentthateachsuchadditionalcustomershallhaveamandatorydutytoconnectpropertytotheSystem[a]whichpropertyisservedbyanexistingprivatewatersourceand/orsepticsystemor(b]which property is improved with one ormoreresidentialdwellingsorcommercialorindustrialfacilitiesandabindingcontracttopurchasesuchpropertybytheanticipatedadditionalcustomerisineffect;
Em MDSER mmUE801105,199080110CEWS -11
(2)a full year of revenues to be derived by the CityfromanycustomersbeingservedbytheSystemtotheextentthehistoricalNetRevenuedoesnotincludesuchrevenues;and
(3)any rate change in effect prior to the delivery oftheproposedFutureParityBondsorauthorizedbytheCityCounciltobecomeeffectivenolaterthansixmonthsafterthedeliveryofsuchbondstobeappliedonaproformabasistosuchhistoricalperiod.
Actual or reasonably anticipated increases in the Costs ofMaintenanceandOperationsubsequenttothe12-month base periodshallbedeductedfromthehistoricalNetRevenue.Any decreasesintheCostsofMaintenanceandOperationreasonablyanticipatedtoberealizedfromtheimprovementstobeconstructedwiththeproceedsofsuchFutureParityBondsmaybeaddedtothehistoricalNetRevenue.
(d)The ordinance authorizing the issuance of additionalFutureParityBondsshallprovidethattheamountdepositedin theReserveAccountintheBondFundshallbeincreasedtoanamountequaltotheReserveRequirementforallParityBondsthenoutstandingandtheFutureParityBondsproposedtobeissued,suchadditionalamounttobeaccumulatedwithinfiveyearsfromthedateofissuanceofsuchproposedFutureParityBonds.In the case ofrefundingbondstheordinanceauthorizingtheissuanceofsuchproposedFutureParityBondsshallprovidethatthemoneyinthereserveaccountforthebondstoberefunded(or,if less than anentireissueofoutstandingbondsistoberefunded,theproportionateamountofsuchmoneyallocatedtotherefundedportionofsuchbonds)shall be transferred to the Reserve AccountintheBondFundorthatthemoneyinthereserveaccountforthebondstoberefundedshallbeusedtoredeemsuchbonds.
Nothing contained in this section shall prevent the City fromissuingrevenuebondshavingajuniorlienontheRevenueoftheSystemorfrompledgingthepaymentofutilitylocalimprovementdistrictassessmentsintoabondredemptionfundoraccountcreatedtopayandsecurethepaymentoftheprincipalofandinterestonsuchjuniorlienbondsaslongassuchassessmentsareleviedtopaypartorallofthecostofimprovementsbeingconstructedoutoftheproceedsofthesaleofsuchjuniorlienbonds.
Section 13.Form of the Bonds.[The City Clerk is herebyauthorizedtopublishthefollowingsummaryofthisSection13inlieuofthefulltext:
Section 13.Form of the Bonds.SUMMARY OF SECTION(A copy of the full text will be mailed upon request):This section contains the text of the Bonds to bedeliveredtobondholdersandwithtwoexceptionscontains
no information or agreement which is not set forthelsewhereinthisordinance.The two exceptions are(1)certain abbreviations for describing interests heldbyregisteredbondownersand(2)the assignment form foreffectingatransferofBondownership.]
The Bonds shall be printed,lithographed,or typewritten on goodbondpaperinsubstantiallythefollowingform:
8
WE AliDSHEEBOE 80\lDS,1990IIOliDORD1WCE-12
UNITED STATES OF AMERICA
NO.$
CITY OF MOSES LAKE,WASHINGTON
WATER AND SEWER REVENUE BOND,1990
0 INTEREST RATE:MATURITY DATE:CUSIP NO.:
SEE REVERSE SIDE FORCERTAINDEFINITIONS
REGISTERED OWNER:
PRINCIRAL AMOUNT:DOLLARS
The City of Moses Lake,Washington,(the "City"),for valuereceivedherebypromisestopaytotheRegisteredOwneridentifiedabove,or registered nominees,on the Maturity Date specifiedabove,the Principal Amount indicated above and to pay interestthereonfromthedateofthisbond,or the most recent date towhichinteresthasbeenpaidordulyprovidedforattheInterestRatesetforthabove,payable on July 1,1991,and semiannuallythereafteronthefirstdaysofeachJanuaryandJulyto andincludingitsMaturityDateandthereafteruntilthisbondwithinterestispaidinfull,or funds are available in the "City ofMosesLakeWaterandsewerRevenueBondFund,1985n created byOrdinanceNo.1184 of the City (the "Bond Fund")for payment infull.
Both principal of and interest on this bond are payable inlawfulmoneyoftheUnitedStatesofAmerica.Interest shall bepaidbycheckordraftmailedtotheRegisteredOwnerorassignsattheaddressappearingontheregistrybooksoftheBondRegistraronthe15thdayofthemonthprecedingtheinterestpaymentdate.Principal shall be payable upon presentation andsurrenderofthiscertificatebytheRegisteredOwnerorassignsattheprincipalofficeofeitherofthefiscalagenciesoftheStateofWashingtoninthecitiesofseattle,Washington,and NewYork,New York (the "Bond Registrar").
Said principal and interest are payable solely out of the BondFund.Reference is made to Ordinance No.___of the City (the"Bond Ordinance")for definition of other capitalized terms usedherein.
Reference is hereby made to additional provisions of this bondsetforthonthereversesidehereofandsuchadditionalprovisionsshallforallpurposeshavethesameeffectasifsetforthinthisspace.
By the Bond Ordinance,the City has designated the bonds ofthisissuetobequalifiedtax-exempt obligations pursuant tosection265(b)(3)of the Internal Revenue Code of 1986 relating tofinanalaher
by
cens.ified
that all acts,conditions and thingsrequiredbytheConstitutionandlawsoftheStateofWashingtonandordinancesofthecitytobedone,to happen or to be performedasconditionsprecedenttotheissuanceofthisbondhavebeendone,have happened and have been performed as required by law.
This bond shall not become valid or obligatory for any purposeuntilthecertificateofauthenticationsetforthhereonhasbeensignedbytheBondRegistrar.
Em 20 SER m¾0E BONDS,1996BONDORDIWCE-13
IN WITNESS WHEREoF,the City has caused this bond to be signedbythefacsimileormanualsignatureoftheMayorandattestedbythefacsimileormanualsignatureofitsCityclerkanditscorporatesealtobeimpressedorafacsimileimprintedhereonthisfirstdayofJuly,1990.
CITY OF MOSES LAKE,WASHINGTON
O BV (facsimile signature)
Mayor
Attest:
(facsimile signature)
City Clerk
Date of Authentication:
CERTIFICATE OF AUTHENTICATION
This bond is one of the fully registered city of Moses Lake,Washington,"Water and Sewer Revenue Bonds,1990n described in thewithinmentionedBondOrdinance.
WASHINGTON STATE FISCAL AGENCY
Bond Registrar
O BV (manual)Authorized Officer
ADDITIONAL PROVISIONS
This bond is one of an issue of $230,000 aggregate principalamountofbondsoflikedate,tenor and effect,except as todenomination,interest rate,maturity and redemption provisions,all payable from the Bond Fund and all issued by the City under andpursuanttotheConstitutionandlawsoftheStateofWashingtonandtheBondOrdinanceforthepurposeofpayingpartofthecostsofconstructionandfinancingtheimprovementsinUtilityLocalImprovementDistrictNo.3 of the City.
The City has reserved the right,at its option,to redeem thebondsofthisissuematuringonorafterJuly1,1999,in whole,or in part (maturities to be selected by the city and by lot within
a maturity in such manner as the Bond Registrar shall determine),on any interest payment date on or after July 1,1998,at a priceof100%of the par amount thereof,plus accrued interest,if any,to the date of redemþtion.
Notice of any such intended redemption shall be given not less0than30normorethan60dayspriortothedatefixedforredemptionbyfirstclassmail,postage prepaid,to the registered
owner of any bond to be redeemed at the address appearing on thebondregister.The requirements of the Bond ordinance shall bedeemedtobecompliedwithwhennoticeismailedashereinprovided,regardless of whether or not it is actually received bytheownerofanybond.Interest on all of such bonds so called forredemptionshallceasetoaccrueonthedatefixedforredemptionunlesssuchbondorbondssocalledforredemptionarenotredeemeduponpresentationmadepursuanttosuchcall.In addition,suchredemptionnoticeshallbemailedwithinthesametimeperiodtoSeattle-Northwest Securities Corporation,Seattle,Washington,to
ME W SERREVHUEBONDS,1990BUDEDUCE -14
Standard &Poor's Corporation and to Moody's Investors Service,Inc.,New York,New Yorks or to their successors,if any,but suchmailingsshallnotbeaconditionprecedenttothecallofanybondsforredemption.
The City hereby covenants and agrees with the owner of thisbondthatitwillkeepandperformallthecovenantsofthisbondandoftheBondOrdinancetobebyitkeptandperformed,andreferenceisherebymadetotheBondOrdinanceforacompletestatementofsuchcovenants.
The city hereby pledges and binds itself to pay into the BondFundallAssessmentsrequiredbylawandordinancesoftheCitytobepaidtherein,when collected,and further pledges and bindsitselftosetasideoutoftheRevenueoftheSystemandpayintosaidBondFundthevariousamountsrequiredbytheBondOrdinancetobepaidintoandmaintainedinsuchFund,all within the timesprovidedbytheBondOrdinance.The bonds are not a generalobligationoftheCity.
To the extent more particularly provided by the Bond ordinancetheamountssopledgedtobepaidoutofRevenueoftheSystemintotheBondFundareherebydeclaredtobealienandchargethereonequalinranktothelienandchargeuponsuchRevenueoftheamountsrequiredtopayandsecurethepaymentofthewaterandsewerrevenuebondsofthecityissuedunderdateofNovember1,1985,and any water and sewer revenue bonds of the City hereafterissuedonaparitywithsaidNovember1,1985,bonds and the bondsofthisissueandsuperiortoallotherliensandchargesofanykindornatureexcepttheCostsofMaintenanceandOperationofthesystem.
The City has further bound itself to maintain the System ingoodconditionandrepair,to operate the same in an efficientmannerandatareasonablecost,and to establish,maintain andcollectratesandchargesthatwillmakeavailableanamountannuallyatleastequaltothecoveragerequirement(as defined intheBondOrdinance)after Costs of Maintenance and operation of theSystemhavebeenpaid.
The pledge of Revenue of the System and Assessments of thecityundertheBondordinancemaybedischargedatorpriortothematurityorredemptionofthebondsofthisissueuponthemakingofprovisionforthepaymentthereofonthetermsandconditionssetforthintheBondOrdinance.
Reference to the Bond Ordinance and any and all modificationsandamendmentsthereofismadeforadescriptionofthenature andextentofthesecurityfortheBonds,the funds or revenuespledged,and the terms and conditions upon which the Bonds areissued.
This bond is transferable only on the records maintained bytheBondRegistrarforthatpurposebysurrenderofthiscertificatetotheBondRegistrardulyassignedandexecutedasindicatedhereon.This bond is interchangeable for bonds of anydenominationauthorizedbytheBondordinanceofanequalaggregateprincipalamountandofthesameinterestrateandmaturity.Portions of the principal amount of this bond in increments of$5,000 may also be redeemed as set forth above,and if less than0alloftheprincipalamounthereofistoberedeemed,upon thesurrenderofthisbondattheprincipalofficeoftheBondRegistrarthereshallbeissuedtotheregisteredowner,withoutchargetherefor,for the then unredeemed principal balance hereofabondorbonds,at the option of the owner,of like maturity andinterestrateinanyofthedenominationsauthorizedbytheBondOrdinance.The Bond Registrar shall not be obliged to transfer orexchangethisbondduringthefifteendaysprecedinganyinterestpaymentdateorthedateonwhichnoticeofredemptionofsuchbondistobegivennoraftersuchnoticehasbeengiven.
RW HDSER REWEBBONDS,1990BUDORDIEW-15
The following abbreviations,when used in the inscription on thefaceofthewithinbond,shall be construed as though they were writtenoutinfullaccordingtoapplicablelawsorregulations:
TEN COM -as tenants in commonTENENT-as tenants by the entiretiesJTTEN-as joint tenants with right of survivorship and not astenantsincommon
0 UNIF (GIFT)(TRANSFER)MIN ACT Custodian(Custodian)(Minor)
under Uniform (Gifts)(state)
(Transfers)to Minors Act
Additional abbreviations may also beusedthoughnotinlistabove
ASSIGNMENT
FOR VALUE RECEIVED,the undersigned hereby sells,assigns and
transfers unto
I I
Please insert social Security or TaxpayerIdentificationNmiiberofTransferen
(Pleaseprintortypewritenue andaddress,inchdingzipcodeofTransferee)
the within bond and does hereby irrevocably constitute and appoint
or its successor,as Bond Registrar,to transfer said bond on the
books kept for registration thereof with full power of substitution in
the premises.
DATED:
SIGNATURE GUARANTEED:
NOTE:The signature on this Assign-ment must correspond with the nameoftheregisteredownerasitappearsuponthefaceofthewithinbondineveryparticular,without alterationorenlargementoranychangewhatever.
Section 14.Execution of Bonds.The Bonds shall be signed0onbehalfofthecitywiththefacsimileormanualsignatureoftheMayor,shall be attested by the facsimile or manual signature oftheCityclerkandshallhavethecorporatesealoftheCityimpressedorafacsimilethereofimprintedthereon.
The Bonds shall not be valid or obligatory for any purpose orentitledtothebenefitsofthisordinanceunlessitshallbearthereonaCertificateofAuthenticationintheformhereinbeforerecited,manually executed by the Bond Registrar.Such CertificateofAuthenticationshallbeconclusiveevidencethattheBonds soauthenticatedhavebeendulyexecuted,authenticated and deliveredhereunderandareentitledtothebenefitsofthisordinance.
Em AIIDSHE WHUEEDS,199080110ORDIlWCE-16
In case either of the officers who shall have executed theBondsoranybondwhichmaybehereafterissuedinsubstitutionforanyBondshallceasetobesuchofficerorofficersoftheCitybeforethebondsosignedshallhavebeenauthenticatedordeliveredbytheBondRegistrar,or issued by the City,such bondmayneverthelessbeauthenticated,delivered and issued and uponsuchauthentication,delivery and issuance,shall be as bindingupontheCityasthoughthosewhosignedthesamehadcontinuedto0besuchofficersofthecity.The Bonds or any substitute bondsmayalsobesignedandattestedonbehalfoftheCitybysuchpersonsasattheactualdateofexecutionofsuchbondsshallbetheproperofficersoftheCityalthoughattheoriginaldateoftheBondsanysuchpersonshallnothavebeensuchofficeroftheCity.
Section 15.Lost or Destroyed Bonds.In case any Bond shallbelost,stolen or destroyed,the Bond Registrar may authenticateanddeliveranewbondoflikedate,principal amount,maturity,interest rate,tenor and effect to the registered owner or nomineethereofuponpaymenttotheCityfortheexpensesandchargesinconnectiontherewithanduponitsfilingwiththeBondRegistrarevidencesatisfactorytosaidBondRegistrarthatsuchBondwasactuallylost,stolen or destroyed and of its ownership thereof,and upon furnishing the City with indemnity satisfactory to themboth.
Section 16.Bond Registrar.Either of the fiscal agenciesoftheStateofWashingtoninthecitiesofSeattle,Washington,and New York,New York (the "Bond Registrar")shall keep,or causetobekept,sufficient books for the registration and transfer oftheBonds.The Bond Registrar is authorized,on behalf of the citytodeliverasubstitutebondorbondsinauthorizeddenominationsforanyBondstransferredorexchangedinaccordancewiththeprovisionsofsuchBondsandthisordinanceandtocarryoutalloftheBondRegistrar's powers and duties under this ordinance.
Section 17.Application and Use of Bond Proceeds.AmountsreceivedasproceedsofthesaleoftheBondsshallbedepositedandappliedasfollows:
A.To the Bond Fund shall be paid the amount receivedonthedateofdeliveryoftheBondsasaccruedinterestontheBonds,which amount shall be applied to pay the interest coming dueontheBondsonJuly1,1991;and
B.To the Construction Fund shall be paid the principalproceedsoftheBonds,which amount shall be applied to costs oftheImprovementsandallcostsincidentalthereto,to the costs ofissuingtheBondsandtorepaymentoftheLoan,all as specifiedinSection3ofthisordinance.
From and after the deposit of such Bond proceeds,expenditures forcostsoftheProjectshallbedeemedtobemadeasfollows:First,from the proceeds of the Bonds;second,from earnings on investmentofBondproceeds;third,from any other monies then on deposit orthereafterdepositedintheConstructionFund.From and aftertransferofBondproceedsandanyinvestmentearningsthereontotheWaterandSewerConstructionFund(Treasureres Fund No.477)to repay the Loan,the amounts so transferred will be deemed to beexpendedfortheProject.
Pending the expenditure of the principal proceeds,the CitymaytemporarilyinvestsuchproceedsinanyinvestmentspermittedbythelawsofthestateofWashington.The investment earningsshallberetainedintheconstructionFundandexpendedforthepurposesofsuchFund.
Section 18.Sale of the Bends.The acceptance of theproposalofSeattle-Northwest securities Corporation of Seattle,Washington,dated June 12,1990,to purchase the Bonds at a priceof$98.20 per $100.00 of principal amount of the Bonds and on the
RR MDSHE EMOEMDS,1990MDŒDam -17
terms set forth in said proposal and this ordinante is herebyratifiedandconfirmed.
Section 19.Findings gud Designation of Egnk Eligibility.TheCityexpectstoissue$650,000 principal amount of its limited taxgeneralobligationbondsdatedJuly1,1990,and may enter intolease-purchase agreements in 1990;however,the aggregate principalamountofallofsuchobligations(including the Bonds)is notexpectedtoexceed$5,000,000;and the City Council hereby finds0anddeterminesthattheBondsqualifyfortheexemptionfromrebateundertheUnitedStatesInternalRevenueCodeof1986andfurtherthattheBondsare,and are hereby designated to be,qualifiedtax-exempt obligations pursuant to Section 265(b)(3)of said Coderelatingtofinancialinstitutions.
Section 20.Authorization to City officials.The proper Cityofficialsareherebyauthorizedtoenterintosuchagreements,toexecutesuchinstruments,to print bonds,to approve an officialstatementorotherdisclosuredocument,to provide certifications,and to take all actions they deem reasonable,necessary and propertocarryouttheProjectandissuanceoftheBondsinconformancewiththeprovisionsofthisordinance.
Section 21.Supplementgl Ordinances.
A.The Council from time to time and at any time mayadoptanordinanceorordinancessupplementaltothisordinancewhichsupplementalordinanceorordinancesthereaftershallbecomeapartofthisordinance,for any one or more of all of thefollowingpurposes:
(1)To add to the covenants and agreements of the CitycontainedinthisordinanceothercovenantsandagreementsthereaftertobeobservedwhichshallnotadverselyaffecttheinterestsoftheholdersofanyParityBondsortosurrender0anyrightorpowerhereinreservedtoorconferredupontheCity.
(2)To make such provisions for the purposes of curinganyambiguitiesorofcuring,correcting or supplementing anydefectiveprovisioncontainedinthisordinanceoranyordinanceauthorizingFutureParityBondsinregardtomattersorquestionsarisingundersuchordinancesastheCouncilmaydeemnecessaryordesirableandnotinconsistentwithsuchordinancesandwhichshallnotadverselyaffecttheinterestoftheownersofParityBonds.
Any such supplemental ordinance of the City may be adoptedwithouttheconsentoftheownersofanyParityBondsatanytimeoutstanding,notwithstanding any of the provisions of subsection Bofthissection.
B.With the consent of the owners of not less than 65%in aggregate principal amount of the Parity Bonds at the timeoutstanding,the Council may adopt an ordinance or ordinancessupplementalheretoforthepurposeofaddinganyprovisionsto orchanginginanymanneroreliminatinganyoftheprovisionsofthisordinanceorofanysupplementalordinance;provided however,thatnosuchsupplementalordinanceshall:
0 (1)Extend the fixed maturity of any Parity Bonds orreducetherateofinterestthereon,or extend the times ofpaymentsofinterestthereonfromtheirduedatesorreducetheamountoftheprincipalthereof,or reduce any premiumpayableontheredemptionthereof,without the consent of theownerofeachbondsoaffected.
(2)Reduce the aforesaid percentage of bondownersrequiredtoapproveanysuchsupplementalordinance,withouttheconsentoftheownersofalloftheParityBondsthenoutstanding.
Em N SHE REMOIBUDS,1990HD GRDMcE-•18
It shall not be necessary for the consent of bondowners underthissubsectionBtoapprovetheparticularformofanyproposedsupplementalordinance,but it shall be sufficient if such consentshallapprovethesubstancethereof.
Section 22.Severability.If any one or more of thecovenantsoragreementsprovidedinthisordinancetobeperformedonthepartoftheCityshallbedeclaredbyanycourtofcompetentjurisdictiontobecontrarytolaw,then such covenant or0covenants,agreement or agreements shall be null and void and shallbedeemedseparablefromtheremainingcovenantsandagreementsofthisordinanceandshallinnowayaffectthevalidityoftheotherprovisionsofthisordinanceoroftheBonds.
Section 23.Ratification.Any act taken pursuant to theauthorityofthisordinancepriortoitseffectivedateisherebyratifiedandconfirmed.
Section 24.Effective Date.This ordinance shall take effectfivedaysafteritsadoptionandpublicationinthemannerprovidedbylaw.
PASSED by the city Council of the City of Moses Lake,Washington at a regular open public meeting thereof held on the26thdayofJune,1990.
CITY OF MOSES LAKE,WASHINGTON
ATTEST:
City Clerk
APPROVED AS TO FORM:
PUBLISHED:JUNE 29,1990
CGl\W\10512W.HIS
O
Em N SER lWEBEß0KDS,890 BUDORDIMCE-19