1634_00001CITY OF MOSES LAKE,WASHINGTON
$320,000
JUNIOR LIEN WATER AND SEWER REVENUE REFUNDING BONDS,SERIES 1994(Utility Local Improvement District
ORDINANCE NO.1634
TABLE OF CONTENTS1
Section Title Page
Recitals ..................1
1.Definitions ..................1
A.Annual Debt Service,Maximum Annual DebtService..................1B.Assessments ..................1C.Bond Registrar ................2D.Bonds;1994 Bonds ...............2E.City ..................2F.City Council .................2G.Code ..................2H.Co-Paying Agents ...............2I.Costs of Operation and Maintenance ......2J.Coverage Requirement .............2K.Debt Service Account .............2L.Future Parity Bonds .............2M.Investment Earnings .............2N.Investments ..................20.Net Revenue ..................2OP.1992 Bond Fund,Parity Bond Fund .......2Q.1994 Bond Fund ................2R.1992 Bond ordinance .............3S.1992 Bonds ..................3T.Outstanding Parity Bonds;Funded Inerest ...3U.Parity Bonds .................3V.Reserve Account ................3W.Reserve Requirement .............3X.Revenue Fund .................3Y.Revenue of the system .............3Z.Senior Lien Bonds;Outstanding Senior LienBonds;Refunded Principal ........3AA.Sinking Fund Account .............4BB,Surety Bond;Surety Bond Payment .......4cc.system ..................5DD.Term Bonds ..................5EE.Treasurer ..................5FF.ULID ..................5GG.1992 Bond Insurer ...............5
2.Compliance with Parity conditions .........5
3.Purpose and Authorization of the Bonds .......6
4.Description of the Bonds ..............6
O A.Date,Denomination,Payment,Transfer ......6B.Optional Redemption ..............7C.Open Market Purchase .............7
1 This Table of Contents is provided for reference only and does notconstituteapartoftheOrdinanceforwhichitisprovided.
REVENUE BOND ORDINANCE -TABLE OF CONTENTS -Page i
August 25,1994
Section Title Page
5.Revenue Fund Priorities ..............7
6.1994 Bond Fund and Accounts Therein ........8
A.Debt Service Account .............8B.Transfers to Sinking Fund Account ......9
7.Reserve Account ..................9
A.Maintenance of and Limitation onAccountBalance...............9B.Issuance of Future Parity Bonds .......9C.Use to Redeem Parity Bonds ..........9D.Deficiencies .................9E.Surety Bond .................10F.Variable Rate Parity Bonds ..........10
8.Investment of Monies in 1994 Bond Fund and Accounts 10
9.Lien Upon Revenue of the System ..........10
10.Adequacy of Revenue to Make Required Payments ...10
11.Defeasance ..................11
12.Certain Covenants .................11
A.Application of Assessments ..........11B.Rates and Charges;Coverage Requirement ....11C.Payment of Cost of Maintenance and Operation .12D.Enforcement of Payment of Service
O Charges and Assessments ...........12E.Maintenance and Operation Standards ......12F.Sale or Disposition of System .........12G.Books and Accounts;Annual Reports ......12H.Insurance ..................12I.No Free Service ...............13J.Special Funds ................13K.Tax Code Covenant ...............13L.No Senior Lien Future Parity Bonds ......13
13.Future Parity Bonds ................13
14.Form of the Bonds .................15
15.Execution of the Bonds ...............19
16.Bond Registrar ..................19
17.Lost or Destroyed Bonds ..............20
18.Sale of the Bonds .................20
19.Disposition of Bond Proceeds ............20
20.Authorisation to Officials and Agents .......20
21.Supplemental Ordinances ..............20
22.Findings and Designation of Bank Eligibility ....22
23.Severability ..................22
24.Effective Date ..................22
REVENUE BOND ORDINANCE -TABLE OF CONTENTS -Page ii
August 25,1994
ORDINANCE NO.1624
An ordinance of the City Council of the city of Moses Lake,
Washington,authorizing the issuance and sale of junior lien water
and sewer revenue bonds of the City in the original principal
amount of $320,000 for the purpose of paying the costs of thesanitarysewerimprovementsmadeinUtilityLocalImprovementDistrictNo.5;fixing the date,form,terms,maturities and
covenants of the bonds;creating a special bond redemption fund toprovideforpaymentofthebondsauthorizedhereinandbondshereafterissuedonaparitytherewith;and providing for issuanceofsuchbondsonaparitywiththewaterandsewerrevenuerefundingbondsdatedJanuary1,1992;and approving the sale ofsuchbondstoMartinNelson&Co.,Inc.
WHEREAS,the City of Moses Lake,Washington,(the "City")now operatesandmaintainsacombinedwaterandseweragesystem(the "System");and
WHEREAS,the city heretofore issued and sold $3,500,000 par value of"Water and Sewer Revenue Refunding Bonds,1992"pursuant to Ordinance
No.1509 (the "1992Bonds")which 1992 Bonds constitute a lien and charge onthenetrevenueoftheSystemjuniortothelienandchargeuponsuchrevenuetopayandsecurepaymentofthe"Water and sewer Revenue Refunding Bonds,1985"issued pursuant to Ordinance No.1184 and the "Water and Sewer RevenueBonds,1990"issued pursuant to ordinance No.1436 (collectively the "seniorLienBonds)and superior to all other liens and charges upon such revenueexceptcostsofmaintenanceandoperationoftheSystem;and
WHEREAS,by Ordinance No.1615,the city created Utility LocalImprovementDistrictNo.5 for the purpose of installing a sanitary sewerstemtoservetheCrestviewDriveareaoftheCityandconnectingthesameotheexistingSystem;and
WHEREAS,it is in the best interest of the City to accept the offer ofMartinNelson&Co.,Inc.,to purchase the water and sewer revenue bonds atthepriceandunderthetermsandconditionssetforthinsuchpurchaseofferandinthisordinance;
THE CITY COUNCIL OF THE CITY OF MOSES LAKE,WASHINGTON,DO ORDAIN asfollows:
Section 1.Definitions.As used in this ordinancer the following wordsshallhavethefollowingmeanings:
A."Annual Debt Service"means the amount required to be paid in acalendaryearfor(1)interest on all Parity Bonds then outstanding excepttheFundedInterestonthe1992Bonds,(2)principal of all Parity Bonds thenoutstandingbutexcludinganyoutstandingTermBonds,and (3)payments intoanysinkingFundAccountfortheamortizationofoutstandingTermBonds.IndetermininginterestpayablewithrespecttoParityBonds,it shall beassumedthatpaymentsintotheSinkingFundAccountshallbemadeintheamountsandatthetimesrequiredinaccordancewiththemandatoryredemptionscheduleestablishedforthoseParityBondswhichconstituteTermBonds,asspecifiedbytheordinancesauthorizingtheissuancethereof."MaximumAnnualDebtService"means the maximum amount of Annual Debt service on thehenoutstandingParityBondsandoutstandingseniorLienBonds(other thaneportionsthereofwhichconstitutetheRefundedPrincipaloftheSeniorenBonds)coming due in any future year.In the event the City has anyParityBondoutstandingonanyJanuary15orJuly15whichdoesnotbearafixedinterestratetothematuritythereof,the Annual Debt Service shall becalculatedinthemannersetforthinSubsection7.F of this ordinance.
B."Assessments"means assessments levied in any ULID hereaftercreatedfortheacquisitionorconstructionofadditionsandimprovements toandextensionsoftheSystemifsuchassessmentsarepledgedtobepaidinto
WATER AND SEWER REVENUEBONDS,1994 -Page 1
the 1992 Bond Fund or 1994 Bond Fund,including any installments ofassessmentsandanyinterestorpenaltieswhichmaybeduethereon.
C."Bond Registrar"means the fiscal agencies of the state ofWashingtoninSeattle,Washington,and New York,New York,appointed by thisordinanceforthepurposesofregisteringandauthenticatingtheBonds,maintaining the Bond register,and effecting transfer of ownership of theBonds.
D.nBonds"or "1994Bonds"means all of the junior lien water andsewerrevenuebondsissuedpursuanttothisordinanceunderdateofAugust15,1994,in the aggregate original principal amount of $320,000.
E."City"means the City of Moses Lake,Washington,a municipalcorporationdulyorganizedandexistingunderandbyvirtueofthelaws oftheStateofWashington.
F.nCity Council"means the governing body of the City as the sameshallbedulyandregularlyconstitutedfromtimetotime.
G."Code"means Sections 103,148,149 and 150 of the Internal RevenueCodeof1986,as amended,and applicable temporary and permanent regulationspromulgatedthereunder.
H."Co-Paying Agents"means the Bond Registrar appointed for purposesofpayinginterestonandprincipalof(and any premium pursuant to call on)the Bonds.
I."Costs of operation and Maintenancen means all necessary operatingexpenses,current maintenance expenses,expenses of reasonable upkeep andrepairs,and insurance and administrative expense,but excludes depreciation,payments for debt service or into reserve accounts and costs of capitaladditionstoorreplacementsoftheSystem,and municipal utility taxes orymentstotheCityinlieuofsuchtaxes.
J."Coverage Requirement"means the coverage requirement specified inSection12.8 of this ordinance.
K."Debt Service Account"means the account of that name created inanyParityBondFundtopaytheprincipalofandinterestonanyParityBonds.
L.nFuture Parity Bondsn means all issues or series of revenue bonds,or other revenue obligations which may be issued in the future as ParityBondsinaccordancewiththetermsofthisordinance.
M."Investment Earnings"means all earnings in any form whatsoeverderivedfromInvestments.
N."Investments"means any investments permitted to the City by lawofmoniesrequiredtobedepositedinanyfundoraccountoftheRevenueFundandanyParityBondFund,except monies deposited in any escrow account forthepurposeofrefundinganyParityBondsandexceptanymonieswhicharesubjecttopaymenttotheUnitedStatesTreasuryundertherebateprovisionsoftheCode.
O."Net Revenue"means the Revenue of the system less Costs ofoperationandMaintenance.
9 P."1992Bond Fund"means the "Water and Sewer Revenue Bond Fund,992"created by Section 5 of Ordinance No.1509 of the City."Parity BondFund"means,collectively,the 1992 Bond Fund,the 1994 Bond Fund and anyotherfundhereaftercreatedtopayorsecurethepaymentofbondshereafterissuedonaparitywiththeBonds.
Q."1994Bond Fund"means the "Water and sewer Revenue Bond Fund,1994"created by Section 6 of this ordinance.
WATER AND SEWER REVENUE BONDS,1994 -Page 2
R."1992 Bond Ordinance"means Ordinance No.1509 of the Cityauthorizingissuanceofthe1992Bonds,establishing a refunding plan for aportionoftheprincipaloftheSeniorLienBondsandforaportionoftheinterestonthe1992Bonds,and containing certain additional requirementswithwhichtheCitymustcomplysolongasany1992Bondsareoutstanding andareinsuredbythe1992BondInsurer.
8."1992Bonds"means the "Water and Sewer Revenue Refunding Bonds,4992"issued under date of January 1,1992,pursuant to the 1992 Bondrdinance,the following amounts of which are currently outstanding:
Principal InterestMaturityDateAmountRate
July 1,1997 $380,000 5.00%July 1,1998 400,000 5.15%July 1,1999 440,000 5.30%July 1,2000 445,000 5.45%July 1,2001 480,000 5.60%July 1,2002 520,000 5.75%July 1,2003 460,000 5.85%$3,125,000
T.noutstanding Parity Bonds"means the outstanding 1992 Bonds,excluding interest coming due thereon from July 1,1992,through July 1,1996,inclusive,which interest was funded by the 1992 Bonds pursuant to therefundingplanestablishedbythe1992BondOrdinance(the "FundedInterest").
U."Parity Bonds"means any revenue bonds or other revenue obligationsissuedbytheCitywhichhavealienupontheRevenueoftheSystemto payandsecurethepaymentoftheprincipalthereofandinterestthereonequaltotheliencreatedupontheRevenueofthesystemtopayandsecurethepaymenttheprincipalofandinterestontheBonds."Parity Bonds"includes the.92 Bonds,the Bonds and any Future Parity Bonds.
V."Reserve Accountu means,collectively,the accounts of that namecreatedinthe1992BondFund,the 1994 Bond Fund and any other Parity BondFundhereaftercreatedforthepurposeofsecuringthepaymentoftheprincipalofandinterestonoutstandingParityBonds.
W."Reserve Requirement"means,from and after July 1,1996,theamountwhichisthesmallestof(i)1.25 times the Average Annual Debtservice,(ii)the Maximum Annual Debt service and (iii)the sum of theamountsequaltotenpercent(10%)of the sale proceeds (as defined in theCode)of the then outstanding Parity Bonds.Prior to July 1,1996,theReserveRequirementshallapplyonlytothe1994Bonds.
X."Revenue Fund"means that Water and Sewer Revenue Fund created byOrdinanceNo.135 of the city.
Y."Revenue of the System"means all the earnings and revenue receivedbythecityfromoperationoftheSystem(including monies in the RevenueFund),except ad valorem taxes,Assessments,Investment Earnings or proceedsof,or investment earnings on,loans and grants for capital purposes,andexceptincomefrominvestmentsirrevocablypledgedtothepaymentofanyrevenuebondswhichhavebeenheretoforeormaybehereafterrefundedpursuanttoaplanofrefundingadoptedbytheCityandexceptanymoniesicharesubjecttopaymenttotheUnitedStatesTreasuryundertherebateovisionsoftheCode.
Z."Senior Lien Bonds"means (i)the "Water and Sewer RevenueRefundingBonds,1985"issued under date of November 1,1985,pursuant toOrdinanceNo.1184 of the city (the "1985Bonds"),the following amounts ofwhicharecurrentlyoutstanding:
WATER AND SEWER REVENUE BONDS,1994 -Page 3
Principal InterestMaturityDateAmountRate
July 1,1995 $335,000 8.90%July 1,1996 360,000 9.00%July 1,1997 300,000*9.10%July 1,1998 335,000*9.20%
***O July 1,2003 2,305,000*9.625%$3,635,000
and (ii)the "Water and Sewer Revenue Bonds,1990"issued under date ofJuly1,1990,pursuant to Ordinance No.1436 of the city (the "1990Bondsnythefollowingamountsofwhicharecurrentlyoutstanding:
Principal InterestMaturityDateAmountRate
July 1,1995 $25,000 6.70%July 1,1996 25,000 6.80%July 1,1997 20,000*6.90%July 1,1998 20,000*7.00%July 1,1999 20,000*7.10%
$110,000
*Principal amounts of the outstanding Senior Lien Bonds that wererefundedbythe1992Bondspursuanttotherefundingplanestablishedbythe1992Bondordinance(the "Refunded Principalu),
"Outstanding senior Lien Bonds"means the $695,000 principal amount of the1985BondsmaturingJuly1,1995,and July 1,1996,together with interest on$3,635,000 principal amount of 1985 Bonds coming due thereon to and includinguly1,1996,the mandatory redemption date of the Refunded Principal of the
.85 Bonds and the $50,000 principal amount of the 1990 Bonds maturingJuly1,1995,and July 1,1996,together with interest on $110,000 principalamountof1990BondscomingduethereontoandincludingJuly1,1998,themandatoryredemptiondateoftheRefundedPrincipalofthe1990BondsmaturingonJuly1,1999.
AA."Sinking Fund Account"means any account created in a Parity BondFundfordepositsrequiredformandatoryredemptionofanyParityTermBonds.
BB."Surety Bond"means any letter of credit,insurance policy,suretybondorotherequivalentcreditfacilityoranycombinationthereofissuedtotheCitytosatisfyallorpartoftheamountrequiredtobemaintainedintheReserveFund,the proceeds of which shall be used only to preventdeficienciesinthepaymentoftheprincipaloforinterestontheBondsresultingfrominsufficientamountsbeingondepositinthePrincipalandInterestAccountoranySinkingFundAccounttomakesuchpaymentsofprincipalandinterestasthesamebecomedueatmaturityoronanymandatoryredemptiondate.Such Surety Bond shall be provided by an institution orentitywhosecreditfacilitywouldnotadverselyaffecttheratingoftheBondsbyMoody's Investors service,Inc.and by standard &Poor'sCorporation,if the Bonds were so rated,and if not so rated,rating shall besecuredfromoneofsuchentitiesoranyotherentitywhoseratingsaregenerallyrelieduponbyinvestorsinmunicipalbondsasnecessarytodemonstratethatsubstitutionofaSuretyBondforanyportionoftheReserveundrequirementwillnotadverselyaffectthesecurityoftheBonds;ovided,however,that as long as the 1992 Bonds are outstanding and insuredrauanttothe1992Bondordinance,the rating must be equivalent to an "Aa"rating by Moody's Investors Service or an "AA"rating by Standard &Poor'sCorporation,or better."Surety Bond Payment"means an amount equal to thepaymentrequiredtobemadebytheCityonanyinterestorprincipalpaymentdateormandatoryredemptiondateminusthatportionofsuchpaymentmadebytheCitytotheBondRegistrarforpaymenttothebondholdersonsuchdate,all as certified by the Bond Registrar in a demand for payment made pursuanttothetermsofanySuretyBond.
WATER AND SEWER REVENUE BONDs,1994 -Page 4
CC."System"means the existing sanitary sewage collection and
treatment system of the City,including facilities for the collection anddisposalofstormwaterrunoff,as it now exists and as it may later be added
to,extended and improved,and the existing water supply and distributionsystemoftheCity,as it now exists and may later be added to,extended andimproved,for as long as the Bonds remain outstanding.
DD."Term Bonds"means any Parity Bonds which are designated as "TermOonds"in an ordinance which authorizes the issuance of Parity Bonds (or in
an ordinance or resolution accepting or ratifying an offer to purchase suchParityBonds)and establishes (or provides for establishment of)a Sinking
Fund Account to amortize the principal amount of such Term Bonds.
EE."Treasurer"means the Finance Director or such other officer of theCityastheCouncilshalldesignatebyordinancetocarryoutthedutiesof
a city treasurer under the laws of the state of Washington or ordinances oftheCity.
FF."ULID"means any utility local improvement district of the City.
GG."1992Bond Insurern means the insurer of the 1992 Bonds pursuant tothe1992Bondordinance.
Section 2.Compliance with Parity Conditions.The city has reservedtherighttoissueadditionalbondsonaparityoflienwiththeOutstanding
Bonds,provided that,at the time of issuance of such parity lien bonds,theconditionssetforthinSection12,subsections A through F,inclusive,ofthe1992BondOrdinance(the "Parity Provisions")are completely met andcompliedwithpriortotheissuanceofsaidparitybonds.As required by theParityProvisions,the City Council hereby finds and determines as follows:
First,that the Bonds are being issued for the purpose of providing
funds to acquire,construct and install additions and improvements to andxtensionsofandacquirenecessaryequipmentfortheSystem.
Second,that all payments required by the 1992 Bond Ordinance tohavebeenmadeintotheDebtserviceAccountandtheReserveAccountofthe1992BondFundhavebeenmadeandnodeficiencyexistsinsaidFundorAccounts.
Third,that this ordinance requires that all assessments andinterestthereonhereaftercollectedinULIDNo.5 be paid directly in the1994BondFundandtheReserveAccount.
Fourth,that this ordinance provides that principal of and interest
on the Bonds shall be payable out of a Parity Bond Fund and requires the City
to make equal annual installments in such amounts that by August 14,1999,the amount in the Reserve Account will equal the Reserve Requirement for theoutstandingBondsandtheBonds.
Fifth,that none of the 1994 Bonds are Term Bonds.
Sixth,that none of the 1994 Bonds are variable rate bonds.
Seventh,that at the time of the issuance and delivery of the BondstherewillbeonfilewiththeCity,a certificate of an independent licensedprofessionalengineerorcertifiedpublicaccountantthat(i)the "annualNetRevenueavailableforParityBonddebtservice"shall be at least equal to.25 times the "net Annual Debt Service"on the Outstanding Parity Bonds andhe1994Bondsand(ii)that the nannual Net Revenue available for ParityBonddebtservice"excluding Assessments in each calendar year shall be atleastequalto80%of the Maximum Annual Debt Service on and the ReserveAccountdepositsfortheOutstandingParityBondsandthe1994Bonds.
The limitations and conditions contained in the Parity Provisions havingbeencompliedwithinthematteroftheissuanceoftheBonds,the paymentsrequiredbythisordinancetobemadeintothe1994BondFundandtheReserveAccountforthepurposeofpayingandsecuringthepaymentoftheprincipal
WATER AND SEWER REVENUE BONDs,1994 -Page 5
of and interest on the Bonds shall constitute a lien upon the Revenue of thesystemequalinranktothelienandchargethereonofthepaymentsrequiredtobemadeintothe1992BondFundandtheReserveAccounttopayandsecurethepaymentoftheprincipalofandinterestontheOutstandingParityBonds.
Section 3.Purpose and Authorization of the Bonds.For the purpose ofpayingpartofthecostandexpenseoftheimprovementsmadeinUtilityLocal
mprovement District No.5 created by Ordinance No.1615 of the City and toaycostsofissuanceoftheBonds,the City shall issue and sell its JuniorienWaterandSewerRevenueBonds,1994 in the principal amount of $320,000.
Section 4.Description of the Bonds.
A.Data,Denomination,Payment,Transfer.The Bonds shall bedesignatedasnJuniorLienWaterandSewerRevenueBonds,Series 1994,"shallbedatedAugust15,1994,shall mature in the aggregate principal amount of$320,000,shall be in the denomination of $5,000 each or any integralmultipleof$5,000,provided no Bond shall represent more than one maturity,shall be numbered separately in the manner and with any additionaldesignationastheBondRegistrardeemsnecessaryforpurposes ofidentification,shall be fully registered as to both principal and interest,shall bear interest from such date until the bond bearing such interest hasbeenpaidoritspaymentdulyprovidedfor,payable February 1,1995,andsemiannuallyonthefirstdaysofeachAugustandFebruarythereafter.TheBondsshallbenumberedseparatelyinthemannerandwithanyadditionaldesignationastheBondRegistrardeemsnecessaryforpurposesofidentification,and shall mature on August 1 of each of the following yearsandinthefollowingamounts:
Maturity Years Amounts Interest Rates
1995 $25,000 4.45%1996 25,000 4.80%O 1997 30,000 5.05%1998 30,000 5.25%1999 30,000 5.40%2000 30,000 5.55%2001 35,000 5.65%2002 35,000 5.75%
2003 40,000 5.85%2004 40,000 5.95%
Both principal of and interest on the Bonds shall be payable in lawfulmoneyoftheUnitedStatesofAmerica.The principal amount of the BondsshallbepayableuponpresentationandsurrenderthereofbytheregisteredownersonorafterthematuritydateattheofficeofaCo-Paying Agent.Interest on the Bonds shall be paid by check or draft mailed to theregisteredownerthereofornomineeofsuchownerattheaddressappearingontheregistrybooksoftheBondRegistraronthe15thdayofthemonthprecedingtheinterestpaymentdate.Interest installments may be paid bywiretransferuponwrittenrequestoftheRegisteredOwnerofoneormoreoftheBonds,provided,however,that such Registered Owner shall bear the BondRegistrar's fee for such wire transfer unless the wire transfer amounts to atleast$5,000 to a single account.The City will bear the cost of wiretransfersofamountsof$5,000 or more to a single account.In any event,any request for payment by wire transfer must be submitted to the BondRegistrarbythefifteethdayofthecalendarmonthprecedingtheinterestpaymentdate.
Upon surrender thereof to the Bond Registrar,the Bonds arenterchangeableforbondsinanyauthorizeddenominationofanequalaggregateprincipalamountandofthesameinterestrateandmaturity.BondsmaybetransferredonlyifendorsedinthemannerprovidedthereonandsurrenderedtotheBondRegistrar.Such exchange or transfer shall bewithoutcosttotheownerortransferee.
The Bonds are special obligations of the City and do not constitute anindebtednessoftheCitywithinthemeaningoftheConstitutionoftheState
WATER AND SEWER REVENUE BONDS,1994 -Page 6
of Washington.The Bonds shall be obligations only of the 1994 Bond Fund andshallbepayableandsecuredasprovidedherein.The Bonds are not generalobligationsoftheCity.
B.Optional Redemption.The Bonds shall not be subject to redemptionpriortotheirrespectivematuritydates.
C.Open Market Purchase.The city may purchase any.Bond or Bonds onheopenmarketfromRevenueoftheSystemfrommoniesavailablethereforinecordancewithSection5ofthisordinance,provided that any such Bondsshallbepurchasedforretirementonly.
Section 5.Revenue Fund Priorities.The Revenue of the System,shallbedepositedintheRevenueFundascollected,and the Revenue Fund shall beheldseparateandapartfromallotherfundsandaccountsoftheCity;provided,however,that when said Revenue is received,the Treasurer may,consistent with the provisions of the ordinances authorizing the outstandingseniorLienBonds,of the 1992 Bond Ordinance and of this ordinance,depositamountsofsuchmoniesdirectly(i)into the 1985 Bond Fund or any ParityBondFund,and any Debt Service Account and any Sinking Fund Account in anyParityBondFund,(ii)into the Reserve Account,(iii)into other funds oraccountsofthecitythatmaybecreatedhereaftertopayorsecurethepaymentoftheprincipalofandinterestonanyotherrevenueobligationsoftheCity,and (iv)into any construction fund or any repair and replacementfundheretoforeorhereaftercreatedbythecity.Any Revenue of the SystemdepositeddirectlyintoanyfundheretoforeorhereaftercreatedforcapitalimprovementstotheSysteminorderthatsuchRevenueshallbeexemptfromtheStateofWashingtontaxonrevenueofwaterandsewerutilitiesoperatingwithinthestateshallbedeemedtohavebeendepositedintheRevenueFundforpurposesofthisordinance.
The monies in the Revenue Fund shall be used only for the following
purposes and in the following order of priority:
First,to pay the Costs of Maintenance and Operation of the system;
Second,to make all payments required to be made into the 1985 BondFund;
Third,to make all payments required to pay the interest on anyParityBondsforwhichmoniesshallnothavebeenprovidedbyAssessments;
Fourth,to make all payments required to pay the principal of anyParityBonds,whether at maturity or due to mandatory redemption orsinkingfundprovisionsforTermBonds,for which monies shall not havebeenprovidedbyAssessments;
Fifth,to make all payments required to be made pursuant to areimbursementagreementinconnectionwithanysuretyBond,providedthat,if there is not sufficient Revenue of the System to make allpaymentsunderallapplicablereimbursementagreements,the paymentswillbemadeonaproratabasis;
Sixth,to make all payments required to be made into the ReserveAccountforwhichmoneyshallnothavebeenprovidedfromAssessments orfromthetransfertobemadefromthereserveaccountinthe1985BondFundtotheReserveAccountonJuly1,1996;
Seventh,to make all payments which may hereafter be required to bemadeintoanyfuturerepair,replacement or reserve fund or accountwhichmayberequiredbythecovenantsofFutureParityBonds;
Eighth,to make all payments required to be made into any otherredemptionfund,debt service account,reserve account or sinking fundaccountcreatedtopayandsecurethepaymentoftheprincipalofandinterestonanyrevenueobligationsoftheCityhavingalienupontheRevenueoftheSystemandmoniesintheRevenueFundjuniorandinferior
WATER AND SEWER REVENUE BONDS,1994 -Page 7
to the lien thereon for the payment of the principal of and interest onParityBonds;and
Ninth,to retire by redemption any outstanding water and sewerrevenueobligationsoftheCityortomakenecessaryadditions,betterments,improvements,extraordinary repairs,extensions andreplacementsoftheSystem,or any other lawful System purposes.
The City further reserves the right,at any time,to use any surplusevenueofthesystemavailableafterprovidingforthepaymentsrequired byparagraphsFirstthroughEighthinclusiveofthissectiontopurchaseanyoftheBondsintheopenmarketinaccordancewithSection4.C.of thisordinance.
Section 6.1994 Bond Fund and Accounts Therein.A special fund of theCitytobeknownasthe"Water and Sewer Revenue Bond Fund,1994"(hereinbefore defined as the "1994Bond Fundn)is hereby established andcreatedintheofficeoftheTreasurerandsaidfundshallbedrawnuponforthesolepurposeofpayingprincipalandinterestonthe1994BondsandFutureParityBonds.The 1994 Bond Fund shall be separated into a DebtServiceAccountandaReserveAccount.Additional separate accounts orsubaccountsmaybecreatedinthe1994BondFundforvariousseriesorissuesofFutureParityBonds.
A.Debt Service Account.Monies deposited in the Debt Service Accountshallbeusedonlyforthepurposeofpayingtheprincipalof,premium,ifany,and interest on the Bonds and any Future Parity Bonds.
As long as any Bonds remain outstanding,the City hereby irrevocablypledges,obligates and binds itself to set aside and pay from the Revenue oftheSystemandmoneyintheRevenueFundintotheDebtServiceAccountthoseamountsnecessary,along with Assessments deposited and other monies then onhandandavailableintheDebtServiceAccount,to pay the interest on allutstandingBondsandtheprincipalofalloutstandingBondsassuchinterestndprincipalrespectivelybecomedueandpayable.Such payments on accountoftheBondsshallbemadeonorbeforethe25thdayofeachmonthasfollows:
1.Beginning with the month of September 1994,and continuing untilJanuary1995,at least one-fifth of the amount which,together withavailableAssessmentsdepositedinthe1994BondFund,will equaltheinteresttobecomedueandpayableontheBondsonFebruary1,1995.
2.Beginning with the month of September 1994,and continuing untilJuly1995,at least one-eleventh of the amount which,together withavailableAssessmentsdepositedinthe1994BondFund,will equaltheprincipaloftheBondstobecomedueandpayableonAugust1,1995.
3.Beginning with the month of February 1995,and continuing as longasanyoftheBondsareoutstandingandunpaid,at least one-sixthoftheamountwhich,together with available Assessments depositedinthe1994BondFund,will equal the interest to become due andpayableonthenextinterestpaymentdateonalloftheBondsthenoutstanding.
4.Beginning with the month of August 1995,and continuing as long asanyoftheBondsareoutstandingandunpaid,at least one-twelfthoftheamountwhich,together with Assessments and other monies ondepositinthe1994BondFundandavailabletherefor,will equaltheprincipaloftheBondstobecomedueandpayableonthenextprincipalpaymentdate.
WATER AND SEWER REVENUE BONDS,1994 -Page 8
B.Transfers to Sinking Fund Account.None of the Bonds are TernBonds.
Section 7.Reserve Account.The city irrevocably obligates and bindsitselftosetasideandmakepaymentsintotheReserveAccountinthe1994BondFund,beginning on the 20th day of July 1995,and annually thereaftercontinuingthroughJuly20,1999,an amount,which together with Assessment
Income,investment earnings and other monies on deposit in said Reserve
ccount,will be sufficient to establish a balance in the collective ReserveccountbyAugust14,1999,equal to the Reserve Requirement.
A.Maintenance of and Limitation on Account Balance.From and after
August 14,1999,the City shall maintain a balance in the Reserve Account inanamountequaltotheReserveRequirement.Because the Reserve Requirement
will change from time to time after each annual principal payment on theBonds,as of July 2,1997,and as of each succeeding July 2 so long as anyParityBondsareoutstanding,the city shall compute the Reserve Requirement;
and,to the extent that the balances in the collective Reserve Account exceedsuchReserveRequirement,the excess amount shall be deemed to have beentransferredonsuchJuly2withrespecttothe1992BondsandonthenextsucceedingAugust2withrespecttotheBonds,at the option of the City,anyParityBondFundandAccountthereinand/or the Revenue Fund and applied forthepurposesoftherespectiveFundsandAccounts.
B.Issuance of Future Parity Bonds.The City further covenants andagreesthatintheeventitissuesanyFutureParityBondsitwillprovideineachordinanceauthorizingtheissuanceofthesamethat,unless and to theextentpaymentismadeintotheReserveAccountoutofAssessments,othermonieslegallyavailablethereforortheproceedsofsuchFutureParity
Bonds,approximately equal annual payments will be made into the ReserveAccountoutofAssessmentsandmoniesintheRevenueFundsothatwithinfive(5)years from the date of the issuance of such Future Parity Bonds,thetotalamountofsuchpayments,with the amount already in the Reservecoount,will be at least equal to the Reserve Requirement.
All monies on deposit in the Reserve Account prior to July 1,1996,shall apply only secure the payment of the 1994 Bonds and any Future Parity
Bonds issued prior to such date;and no amount in the Reserve Account shallbeallocableto,or available to pay,debt service on the 1992 Bonds.
C.Use to Redeem Parity Bonds.Whenever there is a sufficient amountinallParityBondFundsandtheReserveAccounttopaytheprincipalof,premium if any,and interest on all Parity Bonds then outstanding,the moneyintheReserveAccountmaybeusedtopaysuchprincipal,premium,if any,and interest.Money in the Reserve Account may be withdrawn or set aside inaspecialaccounttoredeemandretire,by payment of principal of,premium,if any,and the interest due to the date of redemption or maturity,on anyoutstandingParityBondssolongasthemoniesremainingondepositintheReserveAccountareatleastequaltotheReserveRequirement.
D.Deficiencies.In the event there shall be a deficiency in anyParityBondFundDebtServiceAccounttomeetmaturinginstallmentsofinterestonorprincipalofandinterestonanyParityBondsoradeficiencyinanySinkingFundAccounttomeettherequiredscheduleofpaymentsfortheamortizationofanyTermBonds,such deficiency shall be made up from theReserveAccountbythewithdrawalofmoniestherefromand,if a deficiencystillexistsimmediatelypriortoaninterestpaymentdateandafter thewithdrawalofcash,the City shall then draw from any Surety Bond insufficientamounttomakeupthedeficiency.Such draw shall be made at suchimesandundersuchconditionsastheagreementforsuchsuretyBondshallrovide.Any deficiency created in the Reserve Account by reason of any suchwithdrawalshallbemadeupoutofmoneyintheRevenueFundaftermakingnecessaryprovisionforthepaymentsrequiredtobemadebysubparagraphsFirst,Second,Third,Fourth,and Fifth of Section 5 of this ordinance.Anysuchdeficiencyshallbemadeupwithinoneyearofanysuchwithdrawal.
WATER AND SEWER REVENUE BONDS,1994 -Page 9
E.Surety Bond.The City reserves the right at any time and from timetotimetoobtainoneormoreSuretyBondsinlieuofdepositingcashforall
or part of the Reserve Requirement.In the event any such Surety Bonds areobtained,the City covenants and agrees to maintain an amount in the ReserveAccountatleastequaltothedifferencebetweentheReserveRequirementandtheaggregatelimitontheamountpayableundersuchsuretyBondstopaydebtserviceonthe1992Bonds,the Bonds and any Future Parity Bonds (the "SuretyBondlimit").In the event that the Surety Bond limit shall be expected toOereducedbyreasonofexpirationofthesuretyBondonafixeddateortheendofafixedterm,the City hereby covenants and agrees to replenish theReserveAccounttoanamountequaltotheReserveRequirementnolaterthansuchdateofexpiration.In the event that the surety Bond limit is reducedbyreasonofpaymentmadeunderaSuretyBondtotheBondRegistrartopayanyprincipaloforinterestonanyParityBonds,the City hereby covenantsandagreestomakepaymentstotheissuerofsuchsuretyBondpursuanttothetermsofareimbursementagreementeffectivetoreinstatethemaximumSuretyBondlimit;and to the extent there is no applicable reimbursement agreement,the city covenants and agrees to deposit in the Reserve Account from moniesfirstavailablethereforpursuanttoSection5ofthisordinancesuchamounts
as are necessary to provide a balance therein equal to the then applicableReserveRequirement.
F.Variable Rate Parity Bonds.In the event that the city shall issueFutureParityBondsuponwhichtheinterestrateorratesoranyofthemarenotfixedatthetimeofissuance,the Reserve Requirement shall bedeterminedwithinthirtydaysaftereachJanuary1andJuly1(so long as anyParityBondsremainoutstandingwhichdonotbearafixedinterestrate)asfollows:Any Parity Bond which does not,on the applicable date ofcalculation,bear a fixed interest rate to its maturity date shall be deemedtobearinterestatafixedannualrateequaltotheaverageofthedailyratesonsuchParityBondduringthe365consecutivedaysendingonthedateofcomputation(or,if shorter,the period beginning on the date of issuanceofsuchParityBondandendingonthedateofcomputation).None of the 1994ondswillbevariableratebonds.As provided in Section 12.E.of the 1992ondOrdinance,no variable rate Future Parity Bonds may be issued so long asthe1992Bondsareoutstandingandinsuredbythe1992BondInsurerwithoutthepriorwrittenconsentofthe1992BondInsurer.
Section 8.Investment of Monies in 1994 Bond Fund and Accounts.It istheintentionofthecitytopurchaseInvestmentswithmoniesinthe1994BondFundandAccountsthereinandtoapplytheInvestmentEarningsthereontothegeneralfundoftheCityaspermittedbylaw.
Section 9.Lien Upon Revenue of the system.The amounts pledged bythisordinanceandanyordinanceheretoforeorhereafteradoptedauthorizingtheissuanceofParityBondstobepaidintoanyParityBondFundandtheReserveAccountfromtheRevenueFundareherebydeclaredtobeapriorlienandchargeupontheRevenueoftheSystemsuperiortoallotherchargesofanykindornaturewhatsoeverexceptthecostofmaintenanceandoperationofthesystemandexceptthelienoftheOutstandingSeniorLienBondsatalltimespriortoJuly1,1996,and further except that the amounts so pledgedareofequallientothechargesuponsuchRevenuewhichweremadebythe1992BondordinanceandwhichmayhereafterbemadetopayandsecurethepaymentoftheprincipalofandinterestonanyFutureParityBonds.
Section 10.Adequacy of Revenue to Make Required Payments.The CityCouncilherebyfindsthatinfixingtheamountstobepaidoutoftheRevenueoftheSystemintotheParityBondFunds,and the various accounts therein,t has exercised due regard for the costs of Maintenance and Operation andasnotobligatedtheCitytosetasideandpayintosuchFundsagreatermountoftheRevenueoftheSystemthaninitsjudgmentwillbeavailableoverandabovetheCostsofMaintenanceandOperation.
I|
WATER AND SEWER REVENUE BONDS,1994 -Page 10
Section 11.Defeasance.In the event that monies are irrevocably setasideinaspecialescrowfund(the "Escrow Fund")on the terms andconditionssetforthinthisSection11torefundalloranypartoftheBonds,with respect to the Bonds so refunded:
A.Payments into the 1994 Bond Fund for payment of principal ofandinterestontheBondsshallhediscontinued;
4 B.The Bonds shall cease to be entitled to any lien,benefitrsecurityofthisordinanceexcepttherighttoreceivethemoniesso setaside;and
C.The Bonds shall be deemed not to be outstanding under thisordinance;provided,that any Bonds so refunded shall be deemed to beoutstandingforthepurposeoftransfers,exchanges or the replacement oflostordestroyedBondspursuanttothisordinance.
The Escrow Fund shall be established with a corporate fiduciary qualified todobusinessintheStateofWashingtonand:
(1)Monies set aside in said Escrow Fund shall be irrevocablypledgedtopayprincipalofandredemptionpremium,if any,and interestontherefundedBonds;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 such time or timesandbearinterestatsuchratestoprovidewithoutanyreinvestmentthereofsufficientamountstopayinterestontherefundedBondswhendueandtoredeemandretiretherefundedBondsattheirrespectivematuritydates,mandatory redemption dates,and/or pursuant to anirrevocablecallofanyorallsuchrefundedBondsforredemptioninaccordancewiththeirterms;and
(4)The sufficiency of such cash and government obligations tomakesuchpaymentsshallhavebeenverifiedbyanindependentcertifiedpublicaccountant.
Section 12.Certain covenants.The city hereby covenants and agreeswiththeownerandholderofeachofthe1992Bonds,the Bonds and any FutureParityBondsforaslongasanyofthesameremainoutstandingasfollows:
A.Application of Assessments.There are no AssessmentspresentlyoutstandingortobeleviedinanyULIDSotherthanULIDNo.5.AslongasanyParityBondsremainoutstanding,assessments levied in ULID No.5andinULIDshereaftercreatedtopaypartofthecostofimprovementstotheSystemforwhichFutureParityBondsareissuedshall(to extent suchassessmentsarenotappliedaspermittedbylawtopaymentofpartofthecostsoftheimprovementsfinancedbysuchULID)be pledged,respectively,tothe1994BondFundand/or any other Parity Bond Fund from which the 1994Bondsand/or any such Future Parity Bonds are payable or to the ReserveAccount.It is hereby provided,however,that nothing in this ordinance orthissectionshallbeconstruedtoprohibitthecityfromissuingwaterandsewerrevenuebondsjuniorinlientothe1992Bonds,the Bonds and anyFutureParityBondsandpledgingassecurityfortheirpaymentassessmentsleviedinanyULIDwhichhasbeenspecificallycreatedtopaypartofthecostofimprovementstotheSystemforwhichsuchjuniorlienbondeareOspecificallyissued.
B.Rates and Charges;Coverage Requirement.It will fix,maintain and collect rates and charges for the use of the services andfacilitiesandallcommoditiessold,furnished or supplied by the System toensure(1)that the Revenue of the System is sufficient to pay all Costs ofMaintenanceandOperation,to pay debt service on the Outstanding Senior Lien
WATER AND SEWER REVENUE BONDS,1994 -Page 11
Bonds,and to pay debt service on the 1992 Bonds,and the Bonds,as well asanyotheramountsthatthecityisobligatedtopayfromtheRevenueoftheSystem,and (2)that the Net Revenues in each calendar year will equal atleast(a)(i)1.25 times the difference between the Maximum Annual DebtServiceandtheamountofAssessmentsdueinsuchcalendaryear,plus(ii)the Reserve Account deposits payable in such calendar year;and (b)solongasthe1992Bondsareoutstandingandinsuredbythe1992BondInsurer,Net Revenue excluding Assessments in each calendar year will equal at least0%of the Maximum Annual Debt Service and Reserve Account deposits.
C.Payment of Cost of Maintenance and Operation.After making orprovidingforthemonthlypaymentsfromtheRevenueFundasrequiredbysection6ofthisordinance,there shall be maintained in such FundsufficientmoniestoenablethecitytocontinuouslymeettheCostsofMaintenanceandoperationoftheSystemonacurrentbasis.
D.Enforcement of Payment of Service Charges and Assessments.The City shall promptly take action to enforce the payment of delinquentservicechargesandAssessmentsbysuchmeansasarelegallyavailable.
E.Maintenance and Operation Standards.It will at all timesmaintainthesystemingoodrepair,working order and condition,and will atalltimesoperatetheSystemandthebusinessinconnectiontherewithinanefficientmannerandatareasonablecost.
F.Sale or Disposition of System.It will not sell orvoluntarilydisposeofallofthepropertiesofthesystemunlessprovisionismadeforpaymentintotheParityBondFundsofasumsufficienttopaytheprincipalofandinterestonalloftheParityBondsoutstandinginaccordancewiththetermsthereof;nor will it sell or voluntarily dispose ofanypartofthepropertiesofthesystem(unless the same are no longer used,useful or necessary in the operation of the system)unless provision is madeforpaymentintotheParityBondFundsofanamountwhichwillbeinatleastOhesameproportiontotheamountoftheParityBondsoutstandingthatthe.evenue from the portion or properties of the System sold or disposed ofwhichwasavailablefordebtserviceontheParityBondsoutstandingforthetwelvemonthsprecedingsuchsaleordispositionbearstotherevenueavailableforsuchdebtservicefromtheSystemforthesameperiod.In theeventthatthereshallbemorethanoneParityBondFundatthetimeofanysuchsaleordispositionofapartoftheSystem,the City Council maydesignatebyordinanceorresolutionanyreasonabledistributionofsuchamountamongtheDebtServiceAccountsandSinkingFundAccountswithoutrestriction;otherwise,such amount shall be distributed among such AccountsprorataonthebasisoftheoutstandingParityBondprincipalrespectivelypayablefromsuchAccounts.
G.Books and Accounts;Annual Reports.It will,while any ParityBondsremainoutstanding,keep proper and separate accounts and records inwhichcompleteandseparateentriesshallbemadeofalltransactionsrelatingtotheSystem,and it will prepare and,at the written request oftheoriginalpurchaserorpurchasersofParityBondsoranysubsequentholdersorregisteredownersthereofitwillfurnishtosuchholdersorregisteredowners,complete operating and income statements of the System inreasonabledetailshowingthefinancialconditionofthewaterandsewerdepartmentsoftheCityandcompliancewiththetermsandconditionsofthisordinancenotmorethan150daysafterthecloseofsuchcalendaryear;anditwillgrantanyholdersorregisteredownersofatleast25%of the thenoutstandingBondstherightatallreasonabletimestoinspecttheSystemandallrecords,accounts and data of the City relating thereto.Upon request ofnyholderorregisteredownerofanyoutstandingParityBonderitwillalsournishtosuchholderorregisteredowneracopyofthemostrecentlycompletedauditoftheCity's accounts by the state Auditor of Washington,orsuchotherauditasisauthorizedbylawinlieuthereof.
H.Insurance.It will at all times carry fire and extendedcoverageandsuchotherformsofinsuranceonsuchofthebuildings,equipment,facilities and properties of the city as under good practice areordinarilycarriedonsuchbuildings,equipment,facilities and properties by
WATER AND SEWER REVENUE BONDS,1994 -Page 12
privately owned utilities engaged in the operation of water and seweragesystemstothefullinsurablevaluethereof,and will also carry adequatepublicliabilityandpropertydamageinsuranceatalltimes,and war riskinsuranceonallofsuchpropertiesifthesameshouldbecomeavailable.ThepremiumsonsuchinsurancepoliciesareherebydeclaredtobeanormalcostofmaintenanceandoperationoftheSystem;provided,however,that,with theconsentoftheregisteredownersofthe1992BondsinaccordancewithSubsections22.B.and 22.E.of the 1992 Bond Ordinance,the city may satisfyochinsurancerequirementsthroughalocalgovernmentinsurancepool asermittedbylaw..
I.No Free Service.It will not furnish water or sewer servicetoanycustomeroruserofthesystemwhatsoeverfreeofcharge.
J.Special Funds.It will not create any special fund or fundstopayorsecurethepaymentofdebtserviceon;or authorize or issue,anyotherrevenuebonds,warrants or obligations which will rank on a parity withorhaveanypriorityoverthepaymentsintoorthemoniesinanyParityBondFund,except as provided in Section 13 of this ordinance relating to theissuanceofFutureParityBonds,nor will it create or permit any other lienorencumbrancewhichmaybereasonablyexpectedtoimpairthesecurityoftheBonds.
K.Tax Code covenant.It will make no use nor permit the use ofanyproceedsoftheBondsoranyotherfundsoftheCitywhich,if such usehadbeenreasonablyexpectedatthedatethattheBondsareissued,wouldhavecausedsuchBondstobearbitragebondswithinthemeaningofSection148(a)of the code and will comply with all requirements ofSection148oftheCodetotheextentapplicabletoanyParityBonds.TheCityfurthercovenantsandagreesitwillnottakeanyaction,or fail totakeanyaction,if any such action,or failure to take action,wouldadverselyaffecttheexclusionfromgrossincomeoftheinterestontheBondsunderSection103oftheCode.
Without limiting the generality of the foregoing,the city agreesthatthereshallbepaidwithintherequiredtimesallamountsrequiredtoberebatedtotheUnitedStatespursuanttosection148(f)of the Code and anytemporary,proposed or final Treasury regulations as may be applicable to anyoutstandingParityBondsfromtimetotime.This covenant shall survivepaymentinfullordefeasanceofanyParityBonds.The City Council herebyfindsanddeterminesthat,although the city may issue other tax-exemptobligations(bonds,notes,installment-purchase or lease-purchase contracts)during calendar year 1994,it is expected that all such tax-exemptobligations(including the Bonds)will not exceed,in total aggregateprincipalamount,$5,000,000.
Notwithstanding any provision of this section,if the City shallobtainanopinionofnationallyrecognizedbondcounseltotheeffectthatanyactionrequiredunderthissubsectionisnolongerrequired,or to theeffectthatsomefurtheractionisrequired,to maintain the exclusion fromgrossincomeoftheinterestontheBondspursuanttoSection103oftheCode,the City may rely conclusively on such opinion in complying with theprovisionshereof.
L.No Senior Lien Future Parity Bonds.The provisions ofOrdinancesNo.1184 and No.1436 authorizing the Outstanding Senior LienBondsnotwithstanding,the city hereby covenants that it will issue no waterandsewerrevenuebondsforanypurposewhatsoeverwhichpurporttohave aienontheRevenueoftheSystemequaltothelienthereonforpaymentofrincipalofandinterestontheOutstandingSeniorLienBonds.
Section 13.Future Parity Bonds.The City reserves the right for thepurposeof:
First,acquiring,constructing and installing additions,betterments and improvements to and extensions of,acquiring necessaryequipmentfor,or making necessary replacements of or repairs or capitalimprovementstotheSystem,or
WATERAND SEWER REVENUE BONDS,1994 -Page 13
Second,refunding by exchange or by redemption or purchasing andretiringatorpriortotheirmaturityanypartoralloftheoutstandingwaterandsewerrevenuebondsofthecity,
to issue additional and/or refunding water and sewer revenue bonds therefor(hereinbefore defined as "Future Parity Bonds"),to create additional Parity
Bond Funds,and to make payments into the 1992 Bond Fund,the 1994 Bond Fund
r any such additional Parity Bond Funds and into the Reserve Account from
e Revenue of the system and Assessments sufficient to pay the principal ofndinterestonsuchFutureParityBondsandtomaintainareservethereforashereinafterrequired,which payments may rank equally with the paymentsrequiredbythisordinancetobemadeoutofsuchRevenueandAssessmentsfortheBonds,upon compliance with the following conditions:
A.That all payments then required by this ordinance and all paymentsthenrequiredbyanyordinanceheretoforeorhereafteradoptedpertainingtoanythenoutstandingParityBondsshallhavebeenmadeintoallParityBondFundsandtheReserveAccountandthatnodeficiencyexiststherein;and
B.That the ordinance providing for the issuance of such Future Parity
Bonds shall provide that all assessments and interest thereon which may beleviedinanyULIDhereaftercreatedforthepurposeofpayinginwholeorinparttheprincipalofandinterestonsuchFutureParityBondsshall(to theextentsuchassessmentsarenotappliedaspermittedbylawtopaymentofthecostoftheimprovementsfinancedbysuchULID)be pledged and paid directlyintoaParityBondFundortheReserveAccount;and
C.That the ordinance providing for the issuance of such Future Parity
Bonds shall provide for the payments set forth in section 7.B of thisordinance;and
D.That,in the event such Future Parity Bonds contain Term Bonds,theordinanceauthorizingtheirissuanceshallprovideforascheduleofpaymentsOobemadefromRevenueoftheSystemandAssessments,if any,into a sinkingJundAccounttoamortisetheprincipalofsuchTermBondsonorbeforethematuritydatethereof;and
E.That,so long as any of the 1992 Bonds remain outstanding,novariablerateFutureParityBondsmaybeissuedwithoutthepriorwrittenconsentofthe1992BondInsurerandsuchconsentshallspecificallyapprovetheliquidityfacilitytobeprovidedforanysuchvariablerateFutureParityBonds.
F.That,prior to delivery of such Future Parity Bonds,there shall beonfilewiththeCityacertificateofanindependentlicensedprofessionalengineerorcertifiedpublicaccountantshowing,that in the professionalopinionofsuchengineeroraccountanttheannualNetRevenueavailable forParityBonddebtserviceshallbeatleastequalto1.25 times (i)the netAnnualDebtServiceonthethenoutstandingParityBondsandtheproposedFutureParityBondsand(ii)so long as the 1992 Bonds are outstanding andinsuredbythe1992BondInsurer,Net Revenue available for Parity Bond DebtserviceexcludingAssessmentsineachcalendaryearshallbeatleastequalto80%of the Maximum Annual Debt Service on and Reserve Account deposits forthethenoutstandingParityBondsandtheproposedFutureParityBonds."NetAnnualDebtService"means the Annual Debt Service minus the Assessments(projected in accordance with the following paragraph).
For the purpose of such certificate the engineer or accountant shall useheNetRevenueforanytwelveconsecutivecalendarmonthsoutofthemmediatelypreceding24consecutivemonths,shall assume that outstandingssessmentsshallbepaidinscheduledinstallments,without prepayment,andappliedinaccordancewiththeprovisionsoftheordinancesauthorizingtheoutstandingParityBondsandtheproposedFutureParityBonds,and mayprojecttheNetRevenueforanyportionsofthesystemwhichcameintooperationpriortothedeliveryoftheproposedFutureParityBonds,butwhichwerenotinoperationduringtheentire12-month base period.IndeterminingdebtserviceontheoutstandingParityBondsandtheproposedFutureParityBonds,the engineer or accountant shall assume that any Parity
WATER AND SEWER REVENUE BONDS,1994 -Page 14
Term Bonds and Future Parity Term Bonds will be retired in accordance withmandatoryredemptionrequirementsormandatoryapplicationofsinkingfundpayments.In the event any of the outstanding Parity Bonds or the FutureParityBondsproposedtobeissuedarevariableinterestratebonds,theinterestonsuchbondsshallbeestimatedinaccordancewithSubsection7.Fofthisordinance,provided that the proposed Future Parity Bonds shall bedeemedtohavebeenissued180dayspriortothedateofsuchengineer's oraccountant's certificate.The following adjustments may be made to theistoricalNetRevenueoftheCityorprojectedNetRevenueoftheCity:
(1)Any rate change in effect prior to the delivery of theproposedFutureParityBondsmaybereflected;
(2)Revenue may be added from customers actually added to theSystemduringthe12-month base period to the extent the historical NetRevenuedoesnotincludesuchrevenues;
(3)Service charge revenue may be added from customers to beservedbytheimprovementsbeingconstructedoutoftheproceedsoftheFutureParityBondstobeissued,but only to the extent that each suchadditionalcustomershallhaveamandatorydutytoconnectpropertytothesystem(a}which property is served by an existing private water sourceand/or septic system or [b]which property is improved with one or moreresidentialdwellingsorcommercialorindustrialfacilitiesandabindingcontracttopurchasesuchpropertybytheanticipatedadditionalcustomerisineffect,provided that,so long as the 1992 Bonds are outstanding andinsuredbythe1992BondInsurer,no more than 75%of such service charge
revenue may be added;
(4)Actual or anticipated changes in the operation and maintenance
expenses subsequent to the 12-month base period shall be added or deducted,
as applicable,provided that,so long as the Bonds are outstanding andinsuredbythe1992BondInsurer,only actual reductions in such expenseshichoccurpriortodeliveryoftheproposedFutureParityBondsandwhichillbecontinuingmaybededucted.
Nothing contained in this section shall prevent the City from issuingrevenuebondshavingajuniorlienontheRevenueoftheSystemorfrompledgingthepaymentofULIDassessmentsintoabondredemptionfundoraccountcreatedtopayandsecurethepaymentoftheprincipalofandinterestonsuchjuniorlienbondsaslongassuchassessmentsareleviedtopaypartorallofthecostofimprovementsbeingconstructedoutoftheproceedsofthesaleofsuchjuniorlienbonds.
Section 14.Form of the Bonds.The Bonds shall be in substantiallythefollowingform:
UNITED STATES OF AMERICA
NO.$
STATE OF WASHINGTON
CITY OF MOSES LAKE,WASHINGTON
JUNIOR LIEN WATER AND SEWER REVENUE BOND,SERIES 1994
INTEREST RATE:MATURITY DATE:CUSIP NO.:O
SEE REVERSE SIDE FOR
CERTAIN DEFINITIONS
REGISTERED OWNER:
WATER AND SEWER REVENUE BONDS,1994 -Page 15
PRINCIPAL AMOUNT:
The City of Moses Lake,Washington,a municipal corporation organizedandexistingunderandbyvirtueofthelawsoftheStateofWashington,(the"City")for value received hereby promises to pay to the Registered Owneridentifiedabove,or registered nominees,on the Maturity Date specifiedabove,the Principal Amount indicated above and to pay interest thereon fromhedateofthisbond,or the most recent date to which interest has beenaidordulyprovidedfor,until the payment of this bond at the Interest
Rate per annum set forth above,payable on February 1,1995,and semiannually
thereafter on the first days of each August and February to and including itsMaturityDatewithfullobligationoftheCitytopayinterestatthesameratefromandafterthebondmaturitydateuntilthisbondwithinterestispaidinfull,or funds are available in the nCity of Moses Lake Water andSewerRevenueBondFund,1994"(the n1994 Bond Fund")for payment in full.
Both principal of and interest on this bond are payable in lawful moneyoftheUnitedStatesofAmerica.Interest shall be paid by check or draftmailedtotheRegisteredOwnerhereofornomineeofsuchownerattheaddressappearingontheregistrybooksoftheBondRegistraronthe15thdayofthemonthprecedingtheinterestpaymentdate.Principal shall be payable uponpresentationandsurrenderofthiscertificatebytheRegisteredOwnerornomineeofsuchownerattheprincipalofficeofeitherofthefiscalagenciesoftheStateofwashingtoninthecitiesofSeattle,Washington,andNewYork,New York (the nBond Registrar").
Said principal and interest are payable solely out of the 1994 Bond FundcreatedbyOrdinanceNo.1624 of the City (the nBond Ordinance")into whichfundtheCityherebyirrevocablybindsitselftopaycertainfixedamountsoutoftheRevenueoftheSystem,as the same is defined in the BondOrdinance,namely,amounts sufficient to pay the principal of and interest onthebondsofthisissue(the "Bonds")as they become due,and on any waterOndsewerrevenuebondswhicharehereafterissuedonaparityoflienwithheBondsanddesignatedtobepayableoutofthe1994BondFundandtoaccumulateareserverallatthetimesandinthemannersetforthintheBondordinance.
Reference is made to the Bond Ordinance for definition of othercapitalizedtermsusedherein.
By the Bond Ordinance,the City has designated the Bonds to,bequalifiedtax-exempt obligations pursuant to Section 265(b)of the InternalRevenueCodeof1986relatingtofinancialinstitutions.
Reference is hereby made to additional provisions of this bond set forthonthereversesidehereofandsuchadditionalprovisionsshallforallpurposeshavethesameeffectasifsetforthinthisspace.
It is hereby certified that all acts,conditions and things required bytheConstitutionandlawsoftheStateofWashingtonandordinancesoftheCitytobedone,to happen or to be performed as conditions precedent to theissuanceofthisbondhavebeendone,have happened and have been performedasrequiredbylaw.
This bond shall not become valid or obligatory for any purpose or beentitledtoanysecurityorbenefitundertheBondOrdinanceuntilthecertificateofauthenticationsetforthhereonhasbeenmanuallysignedbyheBondRegistrar.
IN WITNESS WHEREOF,the City has caused this bond to be signed by thefacsimileormanualsignaturesoftheMayorandcityClerkanditscorporatesealtobeimpressedorafacsimilethereoftobeimprintedhereonthis15thdayofAugust,1994.
WATER AND SSWER REVENUE BONDS,1994 -Page 16
CITY OF MOSES LAKE,WASHINGTON
By (facsimile signature)Mayor
Attest:
facsimile signature)ity clerk
Date of Authentication:
CERTIFICATE OF AUTHENTICATION
This bond is one of the fully registered city of Moses Lake,Washington,"Junior Lien Water and Sewer Revenue Bonds,Series 1994"described in thewithinmentionedbondordinance.
WASHINGTON STATE FISCAL AGENCYBondRegistrar
By (manual signature)Authorized officer
ADDITIONAL PROVISIONS
This bond is one of an issue of $320,000 aggregate original principalamountofbondsoflikedate,tenor and effect,-except as to interest rate,maturity and redemption provisions,all payable from the 1994 Bond Fund andallissuedbytheCityunderandpursuanttotheConstitutionandlawsoftheStateofWashingtonandtheBondOrdinanceforthepurposeofpayingpartofþecostofsanitarysewerimprovements.
The City has not reserved the right to redeem any of the Bonds prior tomaturity.
The City has irrevocably obligated and bound itself to pay into the 1994BondFundandtheReserveAccountoutofAssessmentsandRevenueoftheSystemorfromsuchothermoniesasmaybeprovidedthereforintheBondOrdinancecertainamountsnecessarytopayandsecurethepaymentoftheprincipalofandinterestontheBonds.The Bonds are not generalobligationsoftheCity.The Bonds are special obligations of the city anddonotconstituteanindebtednessoftheCitywithinthemeaningoftheconstitutionoftheStateofWashington.
The city hereby covenants and agrees with the owner of this bond that itwillkeepandperformallthecovenantsofthisbondandoftheBondOrdinancetobebyitkeptandperformed,and reference is hereby made to theBondOrdinanceforacompletestatementofsuchcovenants.
The City does hereby pledge and bind itself to set aside from theRevenueFundoutofRevenueoftheSystemandtopayintotheReserveAccountandthe1994BondFundthevariousamountsrequiredbytheBondOrdinancetobepaidintoandmaintainedinsuchFundandAccount,all within the timesprovidedbytheBondOrdinance.
To the extent more particularly provided by the Bond Ordinance theountssopledgedtobepaidfromtheRevenueFundoutofRevenueoftheystemintotheReserveAccountand1994BondFundshallbealienandchargethereonequalinranktothelienandchargeuponsuchRevenueoftheamountsrequiredtopayandsecurethepaymentofthe1992BondsandanyrevenuebondsoftheCityhereafterissuedonaparitywiththeBondsandsuperiortoallotherliensandchargesofanykindornature,except the lien and chargethereontopayandsecurethepaymentoftheoutstandingwaterandsewerrevenuerefundingbondsoftheCityissuedunderdateofNovember1,1985,and the outstanding water and sewer revenue bonds of the City issued under
WATER AND SEWER REVENUE BONDs,1994 -Page 17
date of July 1,1990,(the "Outstanding Senior Lien Bonds")and except thecostsofoperationandMaintenanceoftheSystem.
The City has further bound itself to maintain the System in good repair,working order and condition,to operate the same in an efficient manner andatareasonablecost,and to establish,maintain and collect rates andchargesineachcalendaryearthatwillmakeavailableanamountequaltotheCoverageRequirementforsuchyear.
The pledge of Revenue of the system and Assessments of the City undertheBondordinancemaybedischargedatorpriortothematurityorredemptionoftheBondsuponthemakingofprovisionforthepaymentthereofonthetermsandconditionssetforthintheBondOrdinance.
Reference to the Bond Ordinance and any and all modifications andamendmentsthereofismadeforadescriptionofthenatureandextentofthesecurityfortheBonds,the funds or revenues pledged,and the terms andconditionsuponwhichtheBondsareissued.
This bond is transferable only upon the registry books of the BondRegistrarbysurrenderofthiscertificatetotheBondRegistrardulyassignedandexecutedasindicatedhereon.The Bonds are interchangeable forBondsofanydenominationauthorizedbytheBondOrdinanceofanequalaggregatematurityamountandofthesamecompoundingrateandmaturity.TheBondRegistrarshallnotbeobligedtotransferorexchangethisbondduringthefifteendaysprecedinganyinterestpaymentdateorthedateonwhichnoticeofredemptionofsuchbondistobegivennoraftersuchnoticehasbeengiven.
The following abbreviations,when used in the inscription on the face ofthewithinbond,shall be construed as though they were written out in fullcoordingtoapplicablelawsorregulations:
TEN COM -as tenants in commonTENENT-as tenants by the entiretiesJTTEN-as joint tenants with right of survivorship and not as tenantsincommon
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
ransfers unto
Please insert Social Security or TaxpayerIdentificationNumberofTransferee
(Please print or typewrite name and address,including zip code of Transferee)
WATER AND SEWER REVENUE BONDS,1994 -Page 18
the within bond and does hereby irrevocably constitute and appoint
or its successor,as Bond Registrar,to transfer said bond on the books kept
or registration thereof with full power of substitution in the premises.
DATED:
SIGNATURE GUARANTEED:
NOTE:The signature on this Assign-ment must correspond with the nameoftheregisteredownerasitappearsuponthefaceofthewithinbondinaveryparticular,withoutalterationorenlargementoranychangewhatever.
Section 15.Execution of the Bonds.The Bonds shall be signed onbehalfoftheCitybythefacsimileormanualsignatureoftheMayoroftheCity,shall be attested by the facsimile or manual signature of the CityClarkandshallhavethecorporatesealofthecityimpressedorafacsimilethereofimprintedthereon.
Only such Bonds as shall bear thereon a Certificate of Authentication inOheformhereinbeforerecited,manually executed by the Bond Registrar,shallevalidorobligatoryforanypurposeorentitledtothebenefitsofthisordinance.Such certificate of Authentication shall be conclusive evidencethattheBondssoauthenticatedhavebeendulyexecuted,authenticated anddeliveredhereunderandareentitledtothebenefitsofthisordinance.
In case either of the officers who shall have executed the Bonds shallceasetobesuchofficerorofficersofthecitybeforetheBondssosignedshallhavebeenauthenticatedordeliveredbytheBondRegistrar,or issuedbytheCity,such Bonds may nevertheless be authenticated,delivered andissuedand,upon such authentication,delivery and issuance,shall be asbindingupontheCityasthoughthosewhosignedthesamehadcontinuedtobesuchofficersoftheCityasofthedateofauthenticationbytheBondRegistrar.Any Bond may also be signed and attested on behalf of the City bysuchpersonsasattheactualdateofexecutionofsuchBondshallbetheproperofficersofthecityalthoughattheoriginaldateofsuchBondanysuchpersonshallnothavebeensuchofficeroftheCity.
Section 16.Bond Registrar.The fiscal agencies of the State ofWashingtoninSeattle,Washington,and New York,New York,as appointed bytheStateofwashingtonfromtimetotime,are hereby appointed for thepurposesofregisteringandauthenticatingtheBonds,maintaining a bondregisterfortheBonds,effecting transfer of ownership of the Bonds and forthepurposesofpayinginterestonandprincipalof(and any premium pursuanttocallon)the Bonds.The Bond Registrar shall keep,or cause to be kept,t its principal corporate trust office,sufficient books for thegistrationandtransferoftheBondswhichshallatalltimesbeopentonspectionbythecity.The Bond Registrar is authorized,on behalf of thecity,to authenticate and deliver the Bonds transferred or exchanged inaccordancewiththeprovisionsofsuchBondsandthisordinanceandtocarryoutalloftheBondRegistrar's powers and duties under this ordinance.
The Bond Registrar shall be responsible for its representationscontainedinthecertificateofAuthenticationontheBonds.The BondRegistrarmaybecometheownerofanyoftheBondswiththesamerightsit
WATER AND SEWER REVENUE BONDS,1994 -Page 19
would have if it were not the Bond Registrar,and to the extent permitted bylaw,may act as depositary for and permit any of its officers or directors toactasamemberof,or in any other capacity with respect to,any committeeformedtoprotecttherightsofBondowners.
Section 17.Lost or Destroyed Bonds.In case any Bonds shall be lost,stolen or destroyed,the Bond Registrar may authenticate and deliver a newondorbondsoflikeamount,date,maturity,interest rate,tenor,andffecttotheownerthereofupontheowner's paying the expenses and chargesftheCityinconnectiontherewithanduponhisfilingwiththeBondRegistrarevidencesatisfactorytosaidBondRegistrarthatsuchbondorbondswereactuallylost,stolen or destroyed and of his ownership thereof,and upon furnishing the City with indemnity satisfactory to the city and theBondRegistrar.
Section 18.Sale of the Bonds.The Bonds shall be sold to MartinNelson&Co.,Inc.at the price and on the terms set forth in its purchaseofferdatedAugust23,1994,and in this ordinance.
Section 19.Disposition of Bond Proceeds.Amounts received as proceedsofsaleoftheBondsshallbedepositedandappliedasfollows:
A.To the 1994 Bond Fund shall be paid the amount received on thedateofdeliveryoftheBondsasaccruedinterest,which amount shall beappliedtopayinterestcomingdueontheBondsonFebruary1,1995;and
B.To the Water/Sewer Construction Fund,the amount to becertifiedbytheFinanceDirectorupondeliveryoftheBondstohavebeenexpendedforcostsoftheULIDNo.5 improvements pursuant to ResolutionNo.1732 of the city and the Official Intent declaration of the City ManagerdatedFeburary22,1994,(together the nReimbursement Resolutionn)prior tothedateofdeliveryoftheBonds;and
0 C.To the Revenue Fund shall be paid the balance of theroceeds,which shall be used for the sole purpose of paying costs of theULIDNo.5 improvements and all costs incidental thereto and to the issuanceoftheBonds.Any bond proceeds,as defined by the Code,remaining in saidRevenueFundaftersuchimprovementshavebeencompletedshallbetransferredtotheReserveAccountinthe1994BondFund.
Section 20.Authorization to Officials and Agents.The appropriatecityofficials,agents and representatives of the city are hereby authorizedanddirectedtodoeverythingnecessaryfortheexecutionoftheBondPurchaseAgreement,the prompt issuance,execution,authentication anddeliveryoftheBonds,and for the proper use and application of the proceedsofthesalethereof.
The City Manager is authorized to review and approve,on behalf of theCity,the Official Statement relating to the issuance and sale of the Bondswithsuchchanges,if any,as such officer may deem appropriate.
Section 21.Supplemental Ordinances.
A.The City Council from time to time and at any time may adopt anordinanceorordinancessupplementaltothisordinancewhichsupplementalordinanceorordinancesthereaftershallbecomeapartofthisordinance,foranyoneormoreorallofthefollowingpurposes.
1.To add to the covenants and agreements of the City containedinthisordinanceothercovenantsandagreementsthereafterto beobservedwhichshallnotadverselyaffecttheinterestsoftheownersofanyParityBondsortosurrenderanyrightorpowerhereinreservedtoorconferredupontheCity.
2.To make such provisions for the purpose of curing anyambiguitiesorofcuring,correcting or supplementing any defectiveprovisioncontainedinthe1992BondOrdinance,this ordinance or anyordinanceauthorizingFutureParityBondsinregardtomattersor
WATER AND SEWER REVENUEBONas,1994 -Page 20
questions arising under such ordinances as the City Council may deemnecessaryordesirableandnotinconsistentwithsuchordinancesandwhichshallnotadverselyaffecttheinterestoftheownersofParityBonds.
3.To make such additions,deletions or modifications as may benecessarytoassureexclusionofinterestontheBondsfromgrossincomeundertheCode.
Subject to Subsections 21.B and 21.E of this ordinance,any suchsupplementalordinanceoftheCitymaybeadoptedwithouttheconsentoftheownersofanyParityBondsatanytimeoutstanding,notwithstanding any oftheprovisionsofSubsectionBofthissection.
B.With the consent of the owners of not less than 65%in aggregateprincipalamountoftheParityBondsatthetimeoutstanding,the cityCouncilmayadoptanordinanceorordinancessupplementalheretoforthepurposeofaddinganyprovisionstoorchanginginanymanneroreliminatinganyoftheprovisionsofthisordinanceorofanysupplementalordinance;provided,however,that no such supplemental ordinance shall:
1.Extend the fixed maturity of any Parity Bonds or reduce.therateofinterestthereon,or extend the times of payments of interestthereonfromtheirduedatesorreducetheamountoftheprincipalthereof,or reduce any premium payable on the redemption thereof,without the consent of the owner of each bond so affected.
2.Reduce the aforesaid percentage of Parity Bond owners requiredtoapproveanysuchsupplementalordinance,without the consent of theownersofalloftheParityBondsthenoutstanding.
Except as provided in subsection 24.B of the 1992 Bond Ordinance,it shallnotbenecessaryfortheconsentofbondownersunderthisSubsectionB toprovetheparticularformofanyproposedsupplementalordinance,but itallbesufficientifsuchconsentshallapprovethesubstancethereof.
C.Upon the adoption of any supplemental ordinance pursuant to theprovisionsofthissection,this ordinance shall be deemed to be modified andamendedinaccordancetherewith,and the respective rights,duties andobligationsoftheCityunderthisordinanceandallownersofBondsoutstandinghereundershallthereafterbedetermined,exercised and enforcedthereunder,subject in all respects to such modification and amendments,andallthetermsandconditionsofanysuchsupplementalordinanceshallbedeemedtobepartofthetermsandconditionsofthisordinanceforanyandallpurposes.
D.Bonds executed and delivered after the execution of anysupplementalordinanceadoptedpursuanttotheprovisionsofthissectionmaybearanotationastoanymatterprovidedforinsuchsupplementalordinance,and if such supplemental ordinance shall so provide,new bonds so modified astoconform,in the opinion of the City Council,to any modification of thisordinancecontainedinanysuchsupplementalordinance,may be prepared bytheCityanddeliveredwithoutcosttotheownersoftheBondsthenoutstanding,upon surrender for cancellation of such Bonds in equal aggregateprincipalamounts.
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O
WATERAND SEWER REVENUS BONDS,1994 -Page 21
E.Notwithstanding the foregoing provisions,so long as any 1992Bondsareoutstandingandinsuredbythe1992BondInsurer,anysupplementalordinancesshallbesubjecttoSubsection24.B of the 1992BondOrdinance.
Section 22.Findings gnd Designation of Bank Eligibility.The CityCouncilherebyfindsanddeterminesthattheCitydoesnotexpecttoissuee,orethan $10,000,000 aggregate principal amount of obligations theuterestonwhichisorwillbeexcludedfromgrossincomeundertheCode,including but not limited to revenue bonds and notes,revenue anticipationnotes,and lease purchase or installment purchase contracts in calendaryear1994;and,therefore,the City Council hereby finds and determinesthattheBondsare,and are hereby designated to be,qualified tax-exemptobligationspursuanttoSection265(b)(3)of the Code relating to financialinstitutions.
Section 23.Severabilitv.If any one or more of the covenants oragreementsprovidedinthisordinancetobeperformedonthepartoftheCityshallbedeclaredbyacourtofcompetentjurisdictiontobecontrarytolaw,then such covenant or covenants,agreement or agreements shall benullandvoidandshallbedeemedseparablefromtheremainingcovenantsandagreementsofthisordinanceandshallinnowayaffectthevalidityoftheotherprovisionsofthisordinanceoroftheBonds.
Section 24.Effective Date.This ordinance shall take effect fivedaysafteritsadoptionandpublicationinthemannerprovidedbylaw.
ADOPTED by the City Council of the City of Moses Lake,Washington,ataregularopenpublicmeetingthereofheldthis23rddayofAugust,1994.
City Clerk
APPROVED AS TO FO :
City Attorney
PUBLISHED:AUGUsT 25,1994
WATERANDSEWERREVENUEBONDS,1994 -Pag 22