Loading...
HomeMy WebLinkAbout1968-986 4' AN ED .!�,�il;v�. ow -�.•u _' = =_l, r _ of Yak lima„. ma • Washington, Sr ec f yini r and C adopting plan "f o t:' ° aC . qu:i_s_7. V- oh", 0 o..Isk, ,c,_.r.._, a' o in _s 1 . 3. orL of H. . . certain additions ,and improvements to and -extensions of t h.e combined water-and Sewerage - cars t of the city, and declaring the estimated cost thereof; a .'..t..by ri =' < :int" i be. issuance of • • $2,0 000 l.ce!pai amount. of water - and . sewer revenue nr of e y ay tart p • :s �' +,:. 1 _ C. S,�en�F� :e L1 �.,u7 e_ �: city to ti of the cost of carrying out part of said plan; providing tha t said bonds will be issued on a • parity with certain outstanding water and sewer bond* - f ' . t the t 7 e t n .g bond . ',revenue ':J 1 t+ ri �.,. ... _�.. L ,. r e Ci. �+ _L. `_, c�. . redemption fund; fixing the date, form, terms, . • ' mate 'ities and covenants said' bonds to ` be " iss.ued; providing 'and adopting certain covenants and protective features safeguarding the payment of the principal of and interest on said bonds.; • . authorizing the sale thereof; and declaring an . emergency. •. WHEREAS, the. City of Yakima } Washin ton (hereinafter called the h Cit"y ?�), by Or finance lvo. B- 1714,. passed the 18th day of duly 955, as amended by Ordinance NO. B passed the 12th day of December, 1955, combined its system of sanitary sewage •collection • • and di,sposa,,l with its system of water supply and distribution and authorized additions and betterments to and extensions of such combined system; and . WHEREAS, such existing combined system is in need of certain further additions, improvements and extensions; and WHEREAS,'in order to pay part of the cost of such additions, . improvements and extensions it is deemnad necessary and advisable that e City s s nd sell t.. `., sewer revenue. bonds th total tn t �.. :A y .LSvtA.,. d .i �e^ its roYa.,z... and N..,1 i.e..ve_I-t� #s.. b <;n�� in u:ie. std. :.principal amount of $1,800,000, ant in order to pay' part of the cost All of part of such additions, improvements and extensions that it now issue and sell $2,000,000 .principal amount of such revenue bonds: - WHERil S tur Ordinance " No. B 179 , a.dopte..d. December 1G, 1 955,, the City issued and Sold $400,000 p.rinci>sal amount of its • water and sewer revenue bonds under date of January 1, 1956 which 411 ordinance provided that additional water and sewer revenue bonds could be issued on a parity with such bonds df certain conditions could be met; and ) WHEREAS, pursuant to Ordinance No. 475, adopted November 4, 1963, the City issued and sold $1,500,000 principal amount of its water and sewer revenue bonds under date of January ,1 1964, on a • parity with the outstanding January 1, 1956 revenue bonds; and WHEREAS, it appears to this Council that said parity conditions can be.met and that it is to the best interest of the City and its inhabi- tants that the bonds authorized herein be issued on a parity with such outstanding January 1, 1956 and January 1, 1964 water and sewer revenue_ bonds; and WHEREAS, it is necessary that the date, form, terms, maturities, covenants and conditions of said bonds to be issued now be fixed; NOW, THEREFORE, BE IT ORDAINED by the City of Yakima, Washington: Section 1. As used in this ordinance the following words shall have the following meanings: a. The word "System" shall mean the existing combined water and sewerage system of the City as the same may be added to, improved and extended for as long as any of the Outstanding Parity Bonds, the Authorized Bonds and any Parity Revenue Bonds are outstanding. b. The words "Outstanding Parity Bonds" shall mean: (1) The water and sewer revenue bonds of the City issued under date of January 1, 1956 pursuant to Ordinance No. B-1794, $270,000 principal amount of which are now outstanding; and (2) The water and sewer revenue bonds of the City issued under date of January 1:1964 pursuant to Ordinance No. 475, $1,425,000 • principal amount of whibn are now outstanding... • The Outstanding Parity Bonds are the only revenue bonds of the City outstanding at this time for the payment of the Principal 2. • • • . . . . • • of and interest on which the gross revenue of. the System'has been 411 pledged. • c The words "Outstanding RE:venue Bond Funds" Shall mean . the "Water and Sewer Revenue Bond Fund, 1956". created by Ordinance No. B-1714 of the City as amended by Ordinance No. B-1793, and the "Water and Sewer Revenue Bond Fund, 1964" created by Ordinance No..475 ' of the City for the payment of the principal of and interest on the Outstanding Parity Bonds respectively, and shall include the "Principal and Interest Account" and the "Reserve Account" in the 1956, Bond Fund and the "Reserve Account" in the 1964 Bond Fund. d. The words "Authorized Bonds" shall mean the $4,800,000 of water and sewer revenue bonds of the City authorized herein to pay part of the cost of part of the additions and improvements to and ex- tensions of the System authorized herein. e. The words "Bonds, 1968, Series A" shall mean the $2,000,000 principal amount of the Authorized Bonds issued pursuant to this ordi- nance for the purpose of paying part of the cost of part of the additions and improvements to and extensions of the System authorized herein. f. The words "Parity • Revenue Bonds" shall mean any revenue bonds of the City other than the,Outstanding.Parity Bonds and the Bonds, 1968, Series A issued after the date of the issuance of the 'Bonds, 1968, Series A and having a lien upon the gross.revenue of the System for the • payment of the principal thereof and interest thereon to the lien upon such gross revenue for the payment of the principal of and interest on the Outstanding Parity Bonds and the Bonds, 1968, Series A. Section 2. The following plan of additions and improvements to and extensions of the System is hereby specified and adopted: The City shall acquire, construct and install additions and - improvements to and extensions of its domestic water system, to consist • of a diversion and headworks structure on the Naches River approximately seven miles from the City boundary and a raw water pipe line from said • structure to a new water treatme.,It plant to be constructed on the 411 Naches River approximately six miles froni the City boundary; a tele- metering system; a treated water transmission main from such treatment plant to a new equalizing reservoir near the existing reservoir site, with necessary booster pump facilities and a connecting main to the existing System. The City shall also acquire existing privately- owned distribution mains, wells, reservoirs and appurtenances for incorporation into the domestic water system; shall construct various distribution mains for new services as may be necessary to stabilize pressures and furnish fire flows throughout the System; shall construct and install necessary modifications to existing wells, pressure reduc- ing stations and reservoirs to accommodate a telemetering system; and shall pay part of the cost of constructing a new City shop building • and related facilities. It is hereby provided that as a part of said plan the City shall acquire all materials, equipment, real and personal property or any interest therein, and all easements, franchises and rights-of-way necessary to carry out the above-described plans of additions and im- provements to and extensions of the System, which plans are all as more specifically set forth in maps, plans and specifications prepared by Gray & Osborne and Cornell, Howland, Hayes & Merryfield, engineers for the City. It is hereby further provided that the above-described plans shall be subject to such changes as to details and other changes not affecting the main general plans as herein set forth as may be authorized by the City Council, either prior to or during the actual course of con- struction. Section 3. The estimated cost of the acquisition, construc- tion and installation of tae above-described additions and improvements to and extensions of the System is hereby declared to be, as near as may be, the sum of $5,800,000, $4,800,000 of which shall come from the 4. ,/ • . . 7 • . . • issuance and sale 01' the Authorized Bonds and $1,000;000 of which - 411 shall come from an anticipated L7,rant from the United States Government • and from moneys which the City now has 'or will later have on hand legally available for such purposes, . Section 4. The City does hereby propose and adopt as an integral part of the plan for acquiring, construction and.installing part of the additions and improvements to and extensions of the System • hereinbefore authorized that it shall issue the Bonds*, 1968, Series A. The Bonds, 1968, Series A shall be dated. March 1, 1968, sh11 be in the denomination of $5,000 each, and shall be mature in order of their number and bear interest at a rate or rates of not to exceed 6% per annum payable September 1, 1968 and semiannually on the first days of March and September of each year thereafter as follows: Bond'Nos. Maturity Date Amount Bond. Nos. Maturity Date Amount 1-11 March 1, 1969 $55,000 159-177 March 1, 1980 $ 95,000 12-23 March 1, 1970 60,000 178-197 March 1, 1981 100,000 24-36 March 1, 1971 65,000 198-217' March 1, 1982 100,000 37-49 March 1, 1972 65,000 218L239 March 1, 1983 110,000 - 50-62 March 1, 1973 65,000 • 240-262 March 1, 1984 115,000 63-76 March 1, 1974 70,000 263-286 March 1, 1985 120,000 77-91 March 1, 1975 75,000 287-311 March 1, 1986 125,.000 92-107 March 1, 1976 80,000 312-337 March 1, 1987 130,000. 108-123 March 1, 1977 80,000 338-364 March - 1, 1988 135,000 124-140 March 1, 1978 85,000 365-393 March 1, 1989 145,000 141-158 March 1,. 1979 90,000 394-400 March 1, 1990 35,000 Both principal of and interest on the Bonds, 1968, Series A 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, 1968 hereinafter created. Section 5. The City hereby reserves the right to redeem any or all of the Bonds, 1968, Series A'out,standing in whole, or in part 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 March 1 and September.1, 1976, at • - 102 1/2 411 ,. On March 1 and September 1, 1979, . at . 102 On March 1. and SePtember 1, 1980, at 101 1/2 On Marci and September 1, 119 at 101 On March 1 and. September 1, 1982, at 100 1/2 • ' - • On March 1, 1983 and any interest •payent date thereafter. at 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 purchaser or the account manager or managers of the purchasers of the Bonds, 1968, Series A at their . • sale by the City at its or their main office or offices or principal place or places of business in the State of Washington, or to the busi- . ness successor, if any of said purchaser or account manager or managers at its or their main office or offices or principal place or places of business in the State of Washington. Interest on any Bond or Bonds, 1968, Series A 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 amounts necessary to pay current costs of maintaining and operating the System, costs of necessary additions, betterments and thereto and replacements thereof when the same are not financed by the issuance of bonds or coupon war- rants, all payments required to be made into any bond redemption fund or reserve account out of the gross 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, 1968, Series A in the open market for retirement only if the same may be 'purchased' at a price not exbeeding that at which • • •Yonds, 1968,'Series A could be called fbr redemption on the first suc7,- ceeding date upon which they may be so called, plus accrued interest. • ! Section 6. This City Council hereby finds and determines, • 6. • • as required by Section 7 of Ordinance No. B-1794 and Section 12 of 411 Ordinance No. 475, as follows: First, that at the time of the adortion of this ordinance and at the time of the issuance and delivery of the Bonds, 1968, Series A, all payments then required to have been made into the Outstanding Revenue Bond Funds have been or shall have been made. Second, that the Council has been assured that at the time of the issuance of the Bonds, 1968, Series A the City will have on file a certificate issued by James W. Poirot, an independent registered professional engineer experienced in municipal utilities, showing compliance with the requirements of Section 7(2) of Ordinance No. B-1794 and Section 12(2) of Ordinance No. 475. Third, that by Section 9 of this ordinance the City has covenanted and provided that it will pay into and maintain in the Reserve Account created herein the amounts required by Section 7(3) of said Ordinance No. B-1794 and Section 12(3) of said Ordi- nance No. 475 to be paid into and maintained in said Account at the times required by said sections. The conditions provided in Section 7 of Ordinance No. B-1794 and Section 12 of Ordinance No. 475 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 hereinafter created to pay and secure the payment of the principal of and interest on the Bonds, 1968, Series A shall constitute a lien and charge upon such gross revenue equal in rank with the lien and charge threon for the payments reouired 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, 1968, Series A will not be issued and deaivered.to the purchasers thereof. . as bonds on a parity with the Outstanding Parity Bonds until the above- . described certificate, in form and contents satisfactory to the City and 7. // • • • • • • its counsel has been filed with the City: • Section 7. That by Sectio n 1 of Ordinance No. 90C of the City passed and approved April 10, 1967, there has been created a special fund of the City known as the "'iomiestic Water .improvement Fund" as a depositary for the moneys to be to acquire, construct and install the additions and improvements to and extensions of the System authorized herein and for paying all costs incidental thereto. . The proceeds of the sale of the Authorized-Bonds. (exclusive of accrued interest received from the sale of the Bonds,. 1968, Series A, which shall be paid into the Water and Sewer Revenue Bond Fund, 1968), the anticipated grant or grants from the United States of America, and the money which the City now has or will later have on hand as provided in Section 3 hereof, shall all be paid into said Improvement Fund and • shall be used solely for the purpose of paying the cost of acquiring, constructing and installing the additions and improvements to and ex- tensions of the System provided for herein, including all costs incidental thereto. • Section 8. That there be and is hereby created a special fund of the City to be known as the ",dater and Sewer Revenue Bond Fund, 1968" (hereinafter referred to as the ''Bond Fund "), which Fund is to be drawn upon for the sole purpose of paying the principal - of and in- terest on the Authorized 'Bonds. • The City 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 irferest •on the Bonds, 1968, Series A as the same' shall become due and payable. • Al, Such amounts shall be paid into the Bond Fund on or before the twentieth - day of each month hereinafter specified: a. Beginning wick the month of March, 19-68 and continuing - as long as any of the Bonds, 1968, Series A are outstanding and unpaid, an amount equal to at least one- sixth of the interest to become due and • • 8. • • • . . payable on the next'interest-payment date on all of the Bonds, 1968, • Series A then outstanding. b. Beginning the month of March, 1968 and continuing as long as any of the Bonds, 1968, 3 A are outstanding and unpaid, - • an amount equal at least one-twelfth of the principal of the Bonds, 1968, Series A 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 (herein- after-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 and operation of the System . (which expenses may include pro rata budget charges for City departments where such charges represent a reasonable distribution of 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 to any charges which may be made later thereon to pay and secure the payment of the principal of and interest on Parity Revenue .Bonds. • In the event that money and/or direct obligations of the United States of America maturing at such time or times and bearing interest to be earned thereon in amounts (together with such money if necessary) sufficient to redeem and retire the Bonds, 1968, Series A • in accordance with their terms are set aside in the Bond Fund to effect such redemption and retirement, and such money and/or the principal of 411 . , and interest on such obligations are irrevocably set aside and pledged f9r such purpose, then no further payments need be made into the Bond • Fund for the payment of the principal of and interest on the Bonds, 1968, Series A, and the holders of the Bonds, 1968, Series A and the appurtenant • 9 . • coupons shall cease to be entitled to any lien, benefit or security of this ordinance except the right to receive the funds so set aside and 411 pledged, and the Bonds, 1968, Series A and/or such coupons shall be deemed not to be outstanding hereunder. • Section 9. That there be and is Hereby created a Reserve Ac- court (herein called the "Reserve Account")'in the Bond Fund. The City hereby covenants and agrees that it will set aside and pay into the Reservf Account out of the gross revenue of the System, in equal monthly install- ments commencing not later than the month of March, 1968 and continuing through the month of February, 1973, an aggregate amount equal to the aver• age annual debt service requirements for the Bonds, 1968, Series A. 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 pro- ", vide an aggregate amount in the reserve accounts securing the payment of the Outstanding Parity Bonds and the Bonds, 1968, Series A at least equal to the next succeeding year's debt service on such bonds. In the event the City issues any or all of the remaining Author- ized Bonds, it hereby covenants that it will pay into the Reserve Account out of, the gross revenue of the System., within five years from the date of such issuance and in equal monthly installments, an aggregate amount whic with the aggregate amount required to be oaid in the first paragraph of this section, will be at least equal to the average annual debt service re quirements for the Bonds, 1968, Series A and the Authorized Bonds being issued. The City further covenants and agrees that when said required 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, 1963, Series A, at which time the money in the Reserve Account may be used to pay such principal, 10. • 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, 1968, Series A. suchideficiency shall be made up from the Reserve Account by the .withdrawal of cash therefrom. Any deficiency created, in the Reserve Account by reason of any such with drawal shall then be made up from the gross revenue of the System first available therefor after making necessary provisions for the required Payments into the Bond Fund. 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, 1968, Series A 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 an amount equal to the average annual debt service requirements for the Bonds, 1968, Series A therein as aforesaid, after which such interest and any profits shall be deposited in and be- come a part of the Bond Fund. Section 10. The corporate 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 Account a greater amount of the revenue of the System than in their Sueigmen will be available over and above such normal expenses of maintenance and operation and the amounts necessary to pay the principal of and interest on such 11. • 7 ; 4 '97 . • • • • • o • • Outstanding Parity Bonds. 411 Section 11. The City of Yakima hereby binds itself irrevo- cably not to sell, lease, morgage 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, betterments and exten- , sions 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 Authorized 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", in- cluding all additions, betterments and extensions thereof at any time made that are used, useful or material in 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 Authorized Bonds as the revenue available for debt service for said Authorized Bonds for the twelve months preceding, 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 Authorized Bonds from the entire utility for the same period. Any such moneys so paid into the Bond Fund shall be used to retire out- standing Authorized 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 therawith.in an efficient manner and at • a reasonable cost. • The City further covenants and:agrees with the owner and 111 holder of each of the Authorized Bonds that it will establish, maintain and collect rates and charges for water and for sanitary sewage disposal - - service for as-long as any of the Outstanding Parity Bonds, the Authorized Bonds and any Parity Revenue Bonds are outstanding that will make avail- able for the payment of the principal of and interest on all of such 12. • • • . „ • - • . • . bonds as .the same shall become due. an amount equal to at least 1.4 times the'amount requied each calendar.year herafter for the payment of,all of .Such principal and interest after normal expenses of mainten- • • . . ance and operation (including pl-o rata budget charges for City departments • as provided in Section,. 8 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 aiso, covenants and agrees that it will not furnish . water or sanitary sewage collection and disposal service to any customer • whatsoever free of charge. Section 12. •The City will, while any of said Authorized Bonds remain outstanding, keep proper books of accounts and records separate and apart from other accounts and records in which complete and correct III .'entires will be made'of all transactions relating to the System, and, it will furnish the original purchaser or purchasers of the Authorized 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 claendar 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 Authorized 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 any of the Authorized Bonds or any other outstanding bonds of the City 411 payable out of the revenue of the System. All expenses incurred in the • • maintenance of such books and accounts and the preparation of such state- ments.• may be regarded and-paid as an expense of operation of the System. Section 13. The City further covenants and agrees that it ' will not hereafter issue any water and sewer revenue bonds or refunding 0 • . • • 1B • , • water and sewer revenue bonds which shall constitute a charge or lien against the gross revenue of ti Sy—_,,t prior to or on a parity with the charge or lien against the same for the payments required to be made into the Outstanding Revenue Bond FundEj created to pay and secure the payment of the Outstanding Parity Ponds :and into the Bond Fund for the payment of the Bonds, 1968, Series A; provided, 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 revenue of the System on a parity with the Outstanding Parity Bonds and the Bonds, 1968, Series A 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 Ordinances No. B-1794, No. 475, this ordinance and all ordinancesauthorizing the issuance of 0 Parity Revenue Bonds to pay and secure the payment of all of the bonds issued pursuant to such ordinances 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 Bonds will equal at least 1.40 • times the maximum amount required to be paid in any calendar year there- - after on account of interest to accrue and principal to become payable with respect to all indebtedness of the City payable solely from the revenues of the System to be outstanding 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 registered 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 operating and maintaining the utilities but before depreciation. • 14. Provided., however, that if such additional bonds proposed to 411 - be so issued are for the sole :purpose of refunding Outstanding Parity Bonds, Authorized. Bonds or Parity Revenue Bonds, such certification of coverage shall not be requiredif.the amound required for payment of the principal and interest of each year for the refunding bonds is not increased over the amount required for the bonds to be refunded thereby and the maturities of said refunding bondsa-e not extended beyond the maturities of the bonds to be refunded thereby; and (3) The ordinance authorizing the issuance of such_additional 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 accumu- ,:.--- lated within five years after the date of issuance of such additional bonds by substantially equal annual payments, and said reserve to be • maintained in such amounts so long as any of said additional bonds are outstanding to the last maturity thereof. Such ordinance shall also covenant that after said five-year 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 Authorized 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. 411 Nothing herein contained shall prevent the City from issuing . revenue bonds or warrants (coupon or otherwise) the payment of the prin- cipal 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 15. interest on the Outstanding Parity Bo.1s, the Authorized Bonds, and any III Parity Revenue Bonds. Section 1L4. The Bonds, 1968, Series A shall be in substan- . tially the following form: , UNITED STATES- OF AMERICA NO. $5,000 STATE OF WASHINGTON CITY OF YAKIMA WATER AND SEWER REVENUE BOND, 1968 SERIES A The City of Yakima, a municipal corporation of the State of Washington (hereinafter called the "City"), hereby acknowledges itself to owe and for value received promises to pay to'bearer on the first day of March, 19 , the principal amount of' • _FIVE THOUSAND DOLLARS together with interest thereon at the rate of % per annum payable September 1, 1968 and semiannually on the first days of March and. September of each year thereafter upon presentation and surrender of the attached interest coupons as they severally become due, or until such principal amount shall have been paid or duly provided for. Both principal 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, 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 the "Water and Sewer Revenue Bond Fund, 1968" (hereinafter called the "Bond Fund") created by Ordinance No. (hereinafter called the "Bond Ordinance") of the City, • • 16. . . • , • • • ' • . ' . . The City has reserved the right to redeem any or all of • III the bonds of this issue outstanding in whole, or in part in inverse numerical order, on.the following interest payment dates a6d at the following priCO5 expressed as a percentage Of the .principal amount, plus accrued interest to the date of ' redemption: • On March 1 and September 1 1978, at 102 1/2 On March 1 and September 1, .1979, at 102 On March 1 and September 1, 1980, at 101 1/2 - • On March 1 and. September 1, 1981, at 101 • On MarCh 1 and September 1, 1982, at 100 1/2 On March 1, 1983 and any interest payment date thereafter, at 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 • III • 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, interest rate and date of maturity, in the aggregate ' principal amount of $2,000,000, which bonds are issued pursuant to ordinances of the City duly'and regula-ly adopted, for the purpose of providing part of the funds to pay the cost of ac- 'quiring, constructing and installing additions and improvements to and extensions of the combined water and sewerage system of the City. All of such bonds are payable solely out of the gross revenue of Such combined system and all additions, improve*- III ments and extensions that may be made thereto. The City 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. ! • • 17. . . // • • .• • • ./ . • • . • • • • • The City does hereby plebe nid bind itself to set aside from the gross revenue of the dOmbined water and sewerage system of the City and all additions, .improvements and exten- sions which may be made thereto and to•pay into said Bond Fund • and the Reserve Account create& 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 111 and equal in rank to the charges made thereon to pay the Prin- cipal of and interest on the outstanding water and sewer revenue • of the City bonds/issued under,dates of January 1, 1956 and January. 1, 1964, and co. 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 issue on a parity with said outstanding January 1, 1956 and January 1, 1964 bonds and the bonds of this issue. The City has further bound itself to maintain said combined water and sewerage system in good condition arid 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 III . service furnished for as long as any of the January 1, 1956 and January 1, 1964 bonds, the bonds of this issue,, and any bonds which may be issued liter on a parity therewith 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 . 18. • • . , • • an amount at least equal to 1.4 times the amount required each . . calendar vear hereafter Tor the payment of all of such principal . . and. interest aftesnrormal expenses of maintenance 'and operation of said system have been paid .but before depreciation. It is hereby certified and declared that the bonds of this issue are issued pursuant to and in Strict comPliance with the the Charter and Constitution and laws of the State of Washington and_4rdinances of the City of Yakima and that all acts, conditionF. and things • rebuired to be done precedent to and in the issuance of this bond' have happened, been done and performed. 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 herebn, and the interest coupons attached hereto III to be executed-with the facsimile signatures of said officials, this first day of March, 1968. • CITY OF YAKIMA, WASHINGTON By Mayor ATTEST: • City Glerk • The interest coupons attached to the Bonds, 1968, Series A shall be in substantially the following form: . • NO. • • On the first day of , 19 , the City of Yakima, Washington, will pay to bearer at the office of 411 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 amount shown hereon 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, 1968," 0 • 19. * ; • said amount being the ,semiannual interest due that date on . 411 its water and sewer revenue bond dated March 1, 1968, and numbered CITY OF XPLE:IMA, WASHINGTON By Mayor ATTEST: City Clerk Section 15. The Bonds, 1968, Series A 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 sealof the City impressed thereon. The interest coupons attached thereto shall be executed with the facsimile signatures of said officials. Section 16. The Bonds, 1968, Series A shall be sold at public sale upon sealed proposals to be received by the City Clerk at her office in the City Hall until 1:00 o'clock P.M. Pacific Standard Time • on February 19, 1968 at which time the bids submitted therefor will be publicly opened and read. The City Council will consider and act upon said bids at its regular meeting to be held in the Council Chambers at the City Hall at 8:00 o'clock P.M. Pacific Standard Time on the same day. The proper City officials are hereby authorized and directed to do everything necessary for the prompt issuance, execution and de- livery of the Bonds, 1968, Series A upon their sale and for the proper use and application of the proceeds of such sale. Section 17. Because it is necessary that the City receive 0 the proceeds of the sale of the Bonds, 1968, Series A in the near future, this ordinance is one to provide for the immediate preservation of the public property, welfare and safety i of the Leople of the City, and an emergency is hereby declared to exist. This ordinance shall be in full force and effect immediately upon its passage, approval and 20. • / / T • % / • 1 / a publication as provided by Ia and h.; tie City Charter. PASSED by the City .Council, signed and approved this 2d day of January, 1968. CI. C1 OF `fAKI "fA WAS { NGTON. By NAt' L- -- • Mayor ATTEST: 7,Pa. . • City Clerk AP OVED AS TO ' ORN : IN City A Y • • 21.