Loading...
HomeMy WebLinkAbout1963-475 . . ,,. • , • . 410 , • ,:. ORDINANCE NO. 475 AN ORDINANCE of the City of Yakima, Washington, specifying and adopting a plan for the acquisition, construction and installation of certain additions and improvements to and extensions of the combined water and sewerage system of the city and declaring the estimated cost thereof, authorizing the issuance of $1,500,000 par value of water and sewer revenue bonds of-the " city to pay part of the cost of-carrying out said plan, providing that said bonds will be issued on a parity with the out- , standing Water and Sewer Revenue Bonds, 1956, fixing the date', form, terms, maturi- ties and covenants of said bonds to be issued, providing and adopting certain covenants and protective features safe- guarding the payment of the principal of and interest on said bonds to be issued, and authorizing the sale thereof, and declaring an emergency. 411 WHEREAS, the City of Yakima, Washington, by Ordinance No. ' B-1714, passed the 18th day of July, 1955, as amended by Ordinance No. B-1793, passied-the12th day of December; 1955, combined its -'.:. system of sanitary sewage_collection and disposal with its system of water supply and distribution and authorized additions and better- ments to and extensions of such combined system; and WHEREAS, such existing combined system is in.need of cer tain further additions, improvements and extensions; and . WHEREAS, in order to pay part of the cost of such addi- tions, improvements and extensions it is deemed necessary and ad- . visable that2the city issue and sell its water and sewer revenue bonds in the total principal sugLiol. -$4,500 and 411 • WHEREAS.,_puruant to Ordinance.No. B-1794, adopted Decem- ber 12, 1955, the city issued and sold $400,000 par value of its water and sewer revenue bonds under date of January 1, 1956, which ardinence-provided that additional water and sewer revenue bonds could • • . . . ' . be issued on a parity with such bonds if certain conditions could be met; and WHEREAS, it appears to the Council of the City of Yakima that said conditions can be met and that it is to the best interests of the city and its inhabitants that the bonds authorized herein be issued on a parity with such January 1, 1956, water and sewer revenue bonds; and WHEREAS, it is necessary that the date, form, terms, maturi- ties, covenants and conditions of said bonds to be issued now be fixed; NOW, THEREFORE, BE IT ORDAINED by the City of Yakima: Section 1. As used in this ordinance the following words and phrases shall have the meanings hereinafter set forth unless the context shall clearly indicate that another meaning is intended: (a) The term "Outstanding Parity Bonds" shall mean the out - standing water and sewer revenue bonds of the city issued under date of January 1, 1956, in the aggregate principal amount of $400,000. The Outstanding Parity Bonds are the only revenue bonds of the city outstanding at this time for the payment of the principal of and interest on which the revenue of the System (hereinafter defined) has been pledged. (b) The term "Bonds" shall mean the water and sewer revenue bonds of the city in the aggregate principal amount of $1,500,000 issued pursuant to and for the purposes authorized and provided in this ordinance. (c) The term "System" shall mean the existing combined water supply and distribution system and sanitary sewage collection and disposal system of the city as such system will be added to, improved and extended as authorized herein and as it may later be 2. added to, improved and extended for as long as any of the Outstanding Parity Bonds, the Bonds and any Parity Revenue Bonds (hereinafter defined) are outstanding. (d) The term "Parity Revenue Bonds" shall mean any revenue bonds of the city,other than the Outstanding Parity Bonds and the Bonds,issued under an ordinance wherein the city pledges that the payments to be made out of the gross revenue of the System to pay and secure the payment of the principal of and interest on such Parity Revenue Bonds will be on a parity with the payments required by Ordinance No. B-1794 and this ordinance to be made out of such gross revenue to pay and secure the payment of the principal of and interest on the Outstanding Parity Bonds and the Bonds, respectively. Section 2. The plan of additions and improvements to and 411, extensions of the System attached hereto as Exhibit A and by this reference incorporated herein is hereby specified and adopted. Section 3. The estimated cost of the acquisition, con- struction and installation of the additions and improvements to and extensions of the System authorized in Section 2 hereof is hereby declared to be as near as may be the sum of $2,100,000, which cost shall be paid from the sale of the Bonds as herein provided and from anticipated grants from the United States Government. Section 4. The city does hereby propose and adopt as an integral part of the plan for acquiring, constructing and installing the additions and improvements to and extensions of the System hereinbefore authorize3that it shall issue the Bonds. The Bonds shall be dated January 1, 1964, shall be in de- • nominations of $5,000 each, and shall be numbered, mature in order of their number and bear interest at a rate or rates of not to ex- ceed 6% per annum payable July 1, 1964, and semiannually thereafter 3. on the first days of January and July as follows: • Bond Nos. Maturity Date Amount 1 -5 January 1, 1966 $ 25,000 6 -10 January 1, 1967 25,000 11 -15 January 1, 1968 25,000 16 -20 January 1, 1969 25,000 21 -25 January 1, 1970 25,000 26 -30 January 1, 1971 25,000 31 -36 January 1, 1972 30,000 37 -42 January 1, 1973 30,000 43 -48 January 1, 1974 30,000 49 -54 January 1, 1975 30,000 55 -60 January 1, 1976 30,000 61 -67 January 1, 1977 35,000 68 -74 January 1, 1978 35,000 75 -81 January 1, 1979 35,000 82 -88 - January 1, 1980 35,000 89 -95 January 1, 1981 35,000. 96 -108 January 1, 1982 65,000 109 -121 January 1, 1983 65,000 122 -134 January 1, 1984 65,000 135 -148 January 1, 1985 70,000 149 -162 January 1, 1986 70,000 163 -177 January 1, 1987 75,000 •' 178 -193 January 1, 1988 80,000 194 -209 January 1, 1989 80,000 210 -226 January 1, 1990 85,000 227 -243. January 1, 1991 85,000. 244 -261 January 1, 1992 90,000 262 -280 January 1, 1993 95,000 281 -300 January 1, 1994 100,000 Both principal of and interest on the Bonds shall be payable in lawful money of the United States of America at the office of the City Treasurer in Yakima, Washington, or, at the option of the holder, at the fiscal agency of the State of Washington in the City of New York, New York, and shall be obligations only of the Water and Sewer Revenue Bond Fund, 1964, hereinafter created. Section 5. The City of Yakima has reserved the right to redeem Bonds maturing January 1, 1977, through January 1, 1994, in inverse numerical order on the following interest payment dates and • at the following prices expressed as a percentage of the principal amount, plus accrued interest to the date of redemption: 4. On January 1, 1976 and July 1, 1976, C 104 On January 1, 1977 and July 1, 1977, @ 103 1/2 On January 1, 1978 and July 1, 1978, ,© 103 On January 1, 1979 and July 1, 1979, 102 1/2 On January 1, 1980 and July 1, 1980, 102 On January 1, 1981 and July 1, 1981, 101 1/2 On January 1, 1982 and July 1, 1982, © 101 On January 1, 1983 and July 1, 1983, @ 100 1/2 On January 1, 1984 and any interest payment date thereafter, @ 100 Notice of any such intended redemption shall be given by one publication thereof in the official city newspaper not more than forty nor less than thirty days prior to said redemption date and by mailing a like notice at the same time to the account manager of the purchaser of the Bonds at their sale by the city at its main office or principal place of business or to the business successor, if any, of said account manager at its main office or principal place of business. Interest on any Bond or Bonds so called for redemption shall cease on such redemption date unless the same are not redeemed upon presentation made pursuant to such call. The city further reserves the right whenever it has surplus revenue from the System over and above anounts necessary to pay current costs of maintaining and operating the System, costs of neces- sary additions, betterments and improvements thereto and replacements thereof when the same are not financed by the issuance of bonds or coupon warrants, all payments required to be made into any bond re- demption fund or reserve account out of the revenue of the System, and all payments required for any other proper purposes in connection with the operation of the System, to use such surplus money at any time to purchase any of the Bonds in the open market for retirement only if the same may be purchased at a price not exceeding that at which Bonds could be called for redemption on the first succeeding date upon which they may be so called, plus accrued interest. 5. ',fs 411 Section 6. That by Section 1 of Ordinance No. 399 there has been created a special fund of the city known as the "Sewer Construction Fund" as a depositary for all moneys to be used to acquire, construct and install the additions and improvements to and extensions of the System authorized herein. The proceeds of the sale of the Bonds (exclusive of accrued interest, which shall be paid into the Water and Sewer Revenue Bond Fund, 1964) shall be paid into said Construction Fund and shall be used solely for the purpose of paying the cost of acquiring, construct- ing and installing the additions and improvements to and extensions of the System for which the same are authorized, including the repayment of advances' made from other city funds. 411 Section 7. That there be and is hereby created a special fund of the city to be known as the "Water and Sewer Revenue Bond Fund, 1964" (herein referred to as the "Bond Fund"), which Fund is to be drawn upon for the sole purpose of paying the principal of and the interest on the Bonds. The City of Yakima hereby obligates and binds itself to set aside and pay into the Bond Fund out of the gross revenue of the System the following fixed amounts necessary to pay the principal • of and interest on the Bonds as the same respectively become due and payable. Such amounts shall be paid into the Bond Fund on or before the twentieth day of each month as hereinafter specified. (a) Beginning with the month of January, 1964, and continuing as long as any of the Bonds are outstanding and unpaid an amount equal to at least one-sixth of the interest to become due and payable on the next interest payment date on all of the Bonds then outstand- ing. 6. (b) Beginning with the month of January, 1965, and continuing 1111 as long as any of the Bonds are outstanding and unpaid, an amount equal to at least one-twelfth of the principal of the Bonds to become due and payable on the next principal payment date. Said amounts so pledged to be paid into the Bond Fund and the amounts hereinafter pledged to be paid into the Reserve Account (hereinafter created) out of the gross revenue of the System are hereby declared to be a prior lien and charge upon such gross revenue superior to all other charges of any kind or nature (including any transfer of money to other funds of the city and taxes or payments in lieu of taxes payable to the city) except the normal expenses of maintenance and operation of the System (which expenses may include pro rata budget charges for city departments where such charges 411 represent a reasonable distribution and share of actual cost) and equal in rank to the charges upon such gross revenue to pay and secure the payment of the principal of and interest on the Outstanding Parity Bonds and any Parity Revenue Bonds. Section 8. That there be and is hereby created a Reserve Account in the Bond Fund. The city hereby covenants and agrees that it will set aside and pay into the Reserve Account out of the gross revenue of the System in equal monthly installments commencing not later than January, 1964, and continuing until January 1, 1969, the aggregate sum of $87,000. The city further covenants and agrees that after said five- year period it will from time to time if necessary set aside and pay into the Reserve Account out of the gross revenue of the System or out of any other funds legally available therefor, such amounts as may be necessary to provide an aggregate amount in the reserve 7. • accounts securing the payment of the Outstanding Parity Bonds and the Bonds at least equal to the next succeeding year's debt service on such bonds. The city further covenants and agrees that when said re-- quired amounts have been deposited in the Reserve Account it will at all times maintain those amounts therein until there is a sufficient amount in the Bond Fund and Reserve Account to pay the, principal of, premium if any, and interest on all outstanding Bonds, at which time 7(a) the money in the Reserve Account may 13 used to pay such principal, 411 premium if any, and interest. In the event there shall be a deficiency in the Bond Fund • , . to meet maturing installments of either interest on or principal Of and interest on the Bonds, such deficiency shall be made up from the Reserve Account by the withdrawal of cash therefrom. Any deficiency created in the Reserve Account reason of any such withdrawal shall then be made up from the gross revenue of the System first available therefor. All money in the Reserve Account may be kept in cash or in- vested in direct obligations of the United States having a guaranteed redemption price prior to Maturity or maturing not later than twelve years from date of purchase and in no event maturing later than the • last maturity of the Bonds outstanding at the time of such purchase. Interest earned on and any profits made from the sale of any such investments shall be deposited in and become a part of the Reserve Account until there shall be $87,000 therein as aforesaid, after which such interest shall be deposited in and become a part of the Bond Fund. SeCtion 9. The corporate authorities of the city hereby declare that in fixing the amounts to be paid into the Bond Fund and the Reserve Account as hereinbefore provided they have exercised due regard: to the normal expenses of maintenance and operation of the System and to the amounts required to pay and secure the payment of the principal of and interest on the Outstanding Parity Bonds and have not obligated the city to set aside and pay into said Fund and II/ Account a greater amount of the revenue of the System than in their judgment will be available over and above such normal expenses of maintenance and operation in the amounts necessary to pay the principal 8. 410 of and interest on such Outstanding Parity Bonds. Section 10. The City of Yakima hereby binds itself irrevo- cably not to sell, lease, mortgage or in any manner encumber or dispose of all of the property of the System now belonging to it or which may hereafter belong to it, including all additions, better- ments and extensions thereof at any time made unless provision is made for payment into the Bond Fund of a sum sufficient to pay the principal of and interest on all the outstanding Bonds in accordance with the terms thereof and, further, hereby binds itself irrevocably not to mortgage, sell, lease, or in any manner dispose of any part of the System, including all additions, betterments and extensions thereof at any time made that is used, useful or material to the operation of the System unless provision is made for the replacement thereof or for payment into the Bond Fund of an amount which shall bear the same ratio to the amount of outstanding Bonds as the revenue available for debt service for said Bonds for the twelve months pre- ceding such sale, lease, encumbrance or disposal from the portion of the utility so leased, encumbered or disposed of bears to the revenue available, for debt service for said Bonds from the entire utility for the same period. Any such moneys so paid into the Bond Fund shall be used to retire outstanding Bonds at the earliest possible date. The city further covenants and agrees to maintain the System in good repair, working order and condition and to operate the System and the business in connection therewith in an efficient manner and at a reasonable cost. • The city further covenants and agrees with the owner and holder of each of the Bonds that it will establish, maintain and collect rates and charges for water and for sanitary sewage disposal 9. service for as long as any of the Outstanding Parity Bonds, the Bonds and any Parity Revenue Bonds are outstanding that will make available for the payment of the principal of and interest on all of such bonds as the same shall become due an amount equal to at least 1.4 times the amount required each calendar year hereafter for the pay- ment of all of such principal and interest after normal expenses of maintenance and operation (including pro rata budget charges for city departments as provided in Section 7 above) have been paid but before depreciation and before any transfer of moneys to any funds of the city other than the Bond Fund and before taxes or payments in lieu of taxes payable to the city. The city also covenants and agrees that it will not furnish water or sanitary sewage collection and disposal service to any customer whatsoever free of charge. Section 11. The City of Yakima will, while any of said Bonds remain outstanding, keep proper books of accounts and records separate and apart from other accounts and records in which complete and correct entries will be made of all transactions relating to the System, and it will furnish the original purchaser of the Bonds or any subsequent holder or holders thereof at the written request of such holder or holders complete operating income statements of the System in reasonable detail covering any calendar year not more than ninety days after the close of such calendar year, and it will grant to any holder or holders of at least 25% of the outstanding Bonds the right at all reasonable times to inspect the entire System and all records, accounts and data of the city relating thereto. Copies of such operating and income statements shall be placed on file in the office of the City Clerk and shall be open to inspection at any reasonable time by any holder of the Bonds or any other outstanding 10. • bonds of the city payable out of the revenue of the System. All ex- penses incurred in the maintenance of such books and accounts and the preparation of such statementnay be regarded and paid as an expense of operation of the System. Section 12. The City of Yakima covenants and agrees that it will not hereafter issue any water and sewer revenue bonds or refunding water and sewer revenue bonds which shall constitute a charge or lien against the gross revenue of the System prior to or on a parity with the charge or lien against the same for the payments required to be made into the bond fund created to pay and secure the payment of the Outstanding Parity Bonds and into the Bond Fund, pro- vided, however, that it hereby reserves the right to issue additional • and/or refunding water and sewer revenue bonds (hereinbefore defined as "Parity Revenue Bonds") which shall constitute a charge and lien upon the gross revenues of the System on a parity with the Water and Sewer Revenue Bonds, 1956, and the Bonds if the following conditions shall be met and complied with at the time of the issuance of such additional and/or refunding bonds, to wit: (1) That all payments then required by Ordinance No. B-1794, this ordinance and all ordinances authorizing the issuance of Parity Revenue Bonds to pay and secure the payment of all of such bonds shall have been made. (2) The annual net revenues (hereinafter defined) of the System based upon the historical experience of the entire System or the pro forma revenues under the then existing rates over a period of any twenty-four consecutive months out of the thirty-six months immediately preceding the time of the issuance of such Parity Revenue Bond;will equal at least 1.40 times the maximum amount required to be paid in any calendar year thereafter on account of interest to accrue 11. ' * and principal to beccme payable with respect to all indebtedness of the city payable solely from the revenues of the System to be out- standing immediately subsequent to the incurring of the proposed additional indebtedness. Such determination of the sufficiency of the revenues shall be made and certified to by an independent regis- tered professional engineer experienced in municipal utilities. The net revenues of the System shall mean the amount remaining from the gross operating revenues after deducting therefrom all costs of oper- ating and maintaining the utilities but before depreciation. Provided, however, that if such additional bonds proposed to be so issued are for the sole purpose of refunding Outstanding Parity Bonds, Bonds or Parity Revenue Bonds, such certification of coverage shall not be required if the amount required for payment of the prin- ., cipal and interest of each year for the refunding bonds is not in- creased over the amount required for the bonds to be refunded thereby and the maturities of said refunding bonds are not extended beyond the maturities of the bonds to be refunded thereby; and (3) The ordinance authorizing the issuance of such addi- tional bonds shall provide that an amount equal to the average annual debt service requirements for such additional bonds to be issued shall be accumulated as a reserve in the bond redemption fund created for such additional bonds or in a separate reserve fund, said amount to be accumulated within five years after the date of issuance of such additional bonds by substantially equal annual pay- ments and said reserve to be maintained in such amounts so long any of said additional bonds are outstanding to the last maturity thereof. 12. Such ordinance shall also covenant that after said five-year 111 period the city shall from time to time if necessary set aside and pay into such reserve out of the gross revenue of the System or out of any other funds legally available therefor, such amounts as may be necessary to provide an aggregate amount in the reserve accounts securing the payment of the Outstanding Parity Bonds, the Bonds, any Parity Revenue Bonds theretofore issued and the Parity Revenue Bonds being issued at least equal to the next succeeding year's debt service on such bonds. Nothing herein contained shall prevent the city from issuing revenue bonds or warrants (coupon or otherwise) the payment of the 410 410 12(a) principal of and interest on which is a charge upon the gross revenue of the System junior or inferior to the payments required to be made out of such gross revenue to pay or secure the payment of the principal of and interest on the Outstanding Parity Bonds, the Bonds and any Parity Revenue Bonds. Section 13. The Bonds shall be known as "Water and Sewer Revenue Bonds, 1964," and shall be in substantially the following form: UNITED STATES OF AMERICA NO. $5,000 STATE OF WASHINGTON CITY OF YAKIMA WATER AND SEWER REVENUE BOND, 1964 KNOW ALL MEN BY THESE PRESENTS: That the City of Yakima, a municipal corporation of the State of Washington, hereby acknowledges itself to owe and for value received promises to pay to bearer on the first day of January, 19 , the principal sum of FIVE THOUSAND DOLLARS together with interest thereon at the rate of 1 per annum payable July 1, 1964, and semiannually thereafter on the first days of January and July of each year upon presentation and surrender of the attached interest coupons as they severally become due and with full obligation on the part of the city to pay interest at the same rate from and after the bond maturity • date until this bond with interest is paid in full. Both prin- cipal of and interest on this bond are payable in lawful money of the United States of America at the office of the City Treasurer in Yakima, Washington, or,at the option of the holder, 13. at the fiscal agency of the State of, Washington in the City of New York, New York, solely out of the special fund of the city known as "Water and Sewer Revenue Bond Fund, 1964" (here- inafter called the "Bond Fund "), created by Ordinance No. 475 (hereinafter called the "Bond Ordinance ") of the city. The City of Yakima has reserved the right to redeem the bonds of this issue maturing January 1, 1977, through January 1, 1994, in inverse numerical order on the following interest payment dates and at the following prices expressed as a percentage of the principal amount plus accrued interest to the date of redemption: On January 1, 1976 and July 1, 1976, @ 104 On January 1, 1977 and July 1, 1977, @ 103 1/2 On January 1, 1978 and July 1, 1978, @ 103 S On January 1, 1979 and July 1, 1979, @ 102 1/2 On January 1, 1980 and July 1, 1980, @ 102 On January 1, 1981 and July 1, 1981, @ 101 1/2 On January 1, 1982 and July 1, 1982, @ 101 On January 1, 1983 and July 1, 1983, © 100 1/2 On January 1, 1984 and any interest payment date thereafter, @ 100 Notice of any such intended redemption shall be given by one publication thereof in the official city newspaper not more than forty nor less than thirty days prior to said redemp- tion date and by mailing a like notice at the same time to This bond is one of an issue of water and sewer revenue bonds of the city of like amount, date and tenor except as to number, and date of maturity in the total principal sum of $1,500,000, • which bonds are issued pursuant to ordinances of the city duly and regularly adopted, for the purpose of providing money to pay part of the cost of acquiring, constructing, 14. 111 and installing additions and improvements to and extensions of the combined water and sewerage system of the city. All of said bonds are payable solely out of the gross revenue of such combined system and all additions, improvements and extensions that may be made thereto. The City of Yakima covenants and agrees with the owner and holder of this bond that it will keep and perform all the covenants of this bond and of the Bond Ordinance to be by it kept and performed. The City of Yakima does hereby pledge and bind itself to set aside from the gross revenue of the combined water and sewerage system of the city and all additions, improvements and extensions which may be made thereto and to pay into 411 said Bond Fund and the Reserve Account created therein by said Bond Ordinance the various amounts required by the Bond Ordinance to be paid into and maintained in said Fund and Account, all within the times provided by the Bond Ordinance. Said amounts so pledged to be paid out of said gross revenue into said Bond Fund and Reserve Account are hereby declared to be a prior lien and charge upon such gross revenue superior to all other charges of any kind or nature except the normal expenses of maintenance and operation of said system and equal in rank to the charges made thereon to pay the principal of and interest on the outstanding water 411 and sewer revenue bonds issued under date of January 1, 1956, and to any charges that may be made later on said gross revenue to pay and secure the payment of the principal of and interest on any revenue bonds that the city may later 15. , • : • issue on a parity with said outstanding January 1, 1956,, bonds and the bonds of this issue. The City of Yakima has further bound itself to maintain said combined water and sewerage system in good condition and repair, to operate the same in an efficient manner and at a reasonable cost, and to establish, maintain and collect rates and charges for water supplied and sanitary sewage collection and disposal service furnished for as long as any of the January 1, 1956, bonds, the bonds of this issue and any bonds which may be issued later on a parity therewith are outstand- ing that will make available for the payment of the principal of and interest on all of such bonds as the same shall become due an amount at least equal to 1.4 times the amount required each calendar year hereafter for the payment of all of such principal and interest after normal expenses of maintenance and operation of said system have been paid but before depre- ciation. It is hereby certified and declared that the bonds of this issue are issued pursuant to and in strict compliance with the Constitution and laws of the State of Washington and ordinances of the City of Yakima and that all acts, con- ditions and things required to be done precedent to and in the issuance of this bond have happened, been done and per- formed. IN WITNESS WHEREOF, the City of Yakima has caused this • bond to be signed with the facsimile signature of its Mayor, to be attested by its Clerk, the corporate seal of the city to be impressed hereon and the interest coupons attached 16. 4 , hereto to be executed with the facsimile signatures of said officials, this first day of January, 1964. CITY OF YAKIMA, WASHINGTON By Mayor ATTEST: City Clerk The interest coupons attached to the Bonds shall be in sub- stantially the following form: NO. On the first day of , 19 , the City of Yakima, Washington, will pay to bearer at the office of the City Treasurer in Yakima or,at the option of the holder, at the fiscal agency of the State of Washington in New York, New York, the sum of DOLLARS in lawful money of the United States of America out of the special fund of the city known as "water and Sewer Revenue Bond Fund, 1964," said sum being the semiannual in- terest due that date on its water and sewer revenue bonds dated January 1, 1964, and numbered _ • CITY OF YAKIMA, WASHINGTON By Mayor ATTEST: City Clerk • Section 14. The Bonds shall be signed on behalf of the city with the facsimile signature of its Mayor, shall be attested by its Clerk, and shall have the corporate seal of the city impressed 17. thereon. The interest coupons attached thereto shall be executed with the facsimile signatures of said officials. Section 15. The Council of the City of Yakima hereby finds and determines that as, required by Section 7 of Ordinance No. B-1794: First: That at the time of the adoption of this ordinance and at the time of the issuance and delivery of the Bonds all pay- ments then required to have been made into the Bond Fund pursuant to Ordinance No. B-1794 have been or shall have been made. Second: That the Council has been assured that at the time of the issuance of the Bonds the city will have on file a certificate executed by Holly A. Cornell, an independent,registered,professional engineer experienced in municipal utilities, showing compliance with • the requirements of Section 7 (2) of Ordinance No. B-1794. Third: That by Section 8 of this ordinance the city covenants and provides that it will pay into and maintain in the Reserve Account the amounts required by Section 7 (3) of Ordinance No. B-1794 to be paid into and maintained in said Account at the times required by said Section 7 (3). The conditions contained in Section 7 of Ordinance No. B-1794 having been complied with or assured, the payments required herein to be made out of the gross revenue of the System into the Bond Fund and Reserve Account to pay and secure the payment of the principal of and interest on the Bonds shall constitute a lien and charge upon such gross revenue equal in rank with the lien and charge • thereon for the payments required to pay and secure the payment of the principal of and interest on the Outstanding Parity Bonds. The city hereby further covenants and agrees that the Bonds will not be issued and delivered to the purchasers thereof 18. A ' as bonds on a parity with the Outstanding Parity Bonds ,until the above-described certificate in form and contents satisfactory to the city and its counsel has been filed with the city. The Bonds shall be sold at public sale upon sealed proposals to be received,by the City Council until 1:30 P.M. Pacific Standard Time on December 4, 1963. The proper city officials are hereby authorized and directed to do everything necessary for the prompt issuance, execution and delivery of the Bonds upon their sale and for the proper use and application of the proceeds of such sale. Section 16. This ordinance is one to provide for the imme- diate preservation of the public property, welfare and safety of the people of the City of Yakima and an emergency is hereby declared to exist. This ordinance shall be in full force and effect immediately upon its passage, approval and publication as provided by law and by the City Charter. PASSED by the City Council, signed and approved this 4th day of November, 1963. 011 400r Mayor ATTEST: City Clerk 411 19. ‘. EXHIBIT A (1). There shall be acquired, constructed and installed an Interceptor Sewer approximately 22,436 feet in length, ranging in size from 21 inch diameter at its beginning to 12 inch diameter at its terminus. Said Interceptor Sewer shall be constructed with rubber joint gasketed concrete sanitary sewer pipe. The route of said interceptor shall be as follows: Beginning at the intersection of West Washington Avenue with the right of way of the Union Pacific Railway and thence running westerly along the north side of Washington Avenue a distance of 12,750-The route then proceeds northwesterly inside the City of Yakima Airport property for a distance of 3,900 feet. The alignment thence is due north along Thornton Avenue extended for a distance of 2,420 feet. The line then proceeds westerly on McLean Drive to 40th Avenue; thence north on 40th Avenue to Storm Avenue; thence west on Storm Avenue to • South 41st Avenue; thence north on 41st Avenue to Nob Hill Boulevard; thence west on Nob Hill Boulevard one- half block to the existing Eisenhower Lift Station and the confluence of two other existing sanitary trunk sewer lines. (2) There shall be constructed and installed improvements and additions to the existing sewage treatment facility of the City of Yakima, Washington, located in the SE 1/4 of the SE 1/4 of Sec- , tion 29, T13N, R19E, County of Yakima, on land owned or acquired by the City of Yakima and consisting of: modifications to the existing headworks; a new grit separator; revision to existing shredder basins; new shredding facilities; revision to the existing primary clarifiers, including collector mechanisms, channels, and appurtenant items; revision to existing control building, providing for replace- ment and addition of sludge pumps, drain pumps, piping, valving, electrical wiring and controls, doors, windows, hardware, flooring, interior finish, plumbing fixtures and chlorine storage and handling; a new pump station to trickling filters; new trickling filters; 1. • filter flow control; new secondary clarifier; new secondary sludge pumping station; chlorine contact facilities and outfall line; re- vision to the existing digesters to provide improved heating, piping and mixing facilities and modification of covers; new digesters complete with heating, mixing and necessary appurtenances; a sewer department office and garage; revisions and improvements to the in- plant piping as necessary to accommodate the revisions and improve- ments previously described; grading, pavement and parking facilities; access roads to, from, and through the plant; heating and ventilating facilities necessary to provide for the new facilities and to modernize the existingfhcilities; painting; landscaping; fencing; exterior water system; electrical switchgear and wiring to provide service for the facilities described herein; and all other necessary appur- tenances, connections, piping, wiring, valves, gates, channels, and controls required to provide a complete sewage-treatment facility. (3) There shall be constructed a buried waste irrigation system and improvements and additions to an existing waste irrigation system for disposal and treatment of industrial waste on property owned or acquired by the City of Yakima, in Sections 28, 29, 32 and 33 of T13N, R19E, County of Yakima, consisting of: new screening facilities; additions to the existing industrial waste pumping station; main header pipeline; lateral pipelines; sprinklers; risers; lateral connections; valves; fittings; drain lines; removal, stockpiling and spreading of topsoil; leveling and grading of areas to be irrigated; drain ditches and pipes; collecting ponds with overflow, inlet and outlet structures; seeding of areas to be irrigated; purchase of equipment needed to operate the facility such as, but not limited to, tractors, trailers, mowers, choppers, aerators, and other necessary maintenance, harvesting and soil preparation equipment; and all other 410 necessary appurtenances connecting piping, wiring controls, graveled roadways, grading, and miscellaneous items required to provide a complete industrial waste disposal system. (4) There shall be constructed and installed replacements, additions and repairs to the existing sewage collection system City streets and/or rights-of-way owned or acquired by the City of Yakima for the purpose of reducing external infiltration and improving the operation of said system and consisting of: sewer pipe; wyes; fittings; manholes; service connection changeovers; pavement removal and replacement; lining; grouting; and all necessary incidental work in connection therewith, including, but not limited to, testing, sur- veying, engineering planning anddesign, photographic inspection, flow 411 measurements and the purchase and operation of devices and equipment for carrying out this work. (5) There shall be performed engineering surveys, tests, planning and design for the purpose of developing plans for expansion and improvement of the water supply and distribution system of the City of Yakima. Said improvements for which said engineering work is to be performed shall include improvement, replacement or abandon- ment of the existing separate irrigation systems serving the City, the provision of additional water supply, the transmission of said supply, provisions for storage and the development of distribution facilities. The city shall acquire all real and personal property, rights of way, franchises and easements necessary to carry out said Alo plan and shall do all things necessary or incidental to said plan. The City Council may make such changes in the details of said plan either prior to or in the actual course of construction which may be found necessary or desirable as long as the same do not substantially affect or change the general parts of said plan as above set forth. PP IP- . 90 ` •g" --,, I, J. A. SMITH, City Clerk of the City of Yakima, Washington, 111 DO HEREBY CERTIFY that the foregoing is a true and correct copy of Ordinance No. 475 of said city, duly passed by its Council and approved by its Mayor at a regular meeting of said Council held on the 4th day of November, 1963. V _ City Clerk •