HomeMy WebLinkAbout1981-2526 ADDITIONS & IMPROVEMENTS TO & EXTENSIONS OF THE COMBINED WATER & SEWERAGE SYSTEM. !
• ORDINANCE NO 2526
AN ORDINANCE of the City of Yakima, Washington,
amending Ordinance 2133 in which the council
heretofore adopted a plan of additions and improve-
ments to and extensions of the combined water and
410 sewerage system of the City; as amended by Ordinance
2231; authorizing the city to borrow from the
State of Washington, Department of Ecology not to
exceed the principal amount of $2,600,000 for the
purpose of paying part of the cost of carrying out
said plan of additions and improvements; providing
for the disposition of the proceeds thereof;
pledging water and sewer revenues and grants to
secure and pay the loan and authorizing the
execution of a loan agreement; and declaring an
emergency.
WHEREAS, the City of Yakima, Washington (the "City") now
owns, maintains and operates a water supply and distribution
system and a sewerage collection and disposal system, and said
water and sewerage systems have been combined in the manner
provided by law; and
WHEREAS, by Ordinances Nos. 2123 and 2133 passed October 24,
1977 and December 8, 1977, respectively, the Council of the City
adopted a plan of additions and improvements to and extersions of
the combined water and sewerage system (the "System") of the
City; and
WHEREAS, by Ordinance Nos. 2123 and 2133, as amended by
Ordinance No. 2231 passed November 6, 1978, the Council of the
City declared the estimated cost of such plan to be as near as
may be the sum of $24,400,000, a portion of which would be provided
by the proceeds from the issuance and sale of water and sewer
revenue bonds of the City in the principal amount of not to
exceed $3,500,000; and
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WHEREAS, since the time of adoption of said plan, the Council
- has found and determined that the cost and expense of purchasing,
acquiring and constructing the additions and improvements provided
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therein has increased, and it is necessary to further amend
Ordinance No. 2133 for such cost and expense and authorizing the 40
issuance of water and sewer revenue bonds to pay part of such
cost and expense; and
WHEREAS, in order to provide the financing in anticipation
of the receipt of grants and other moneys for carrying out part
of the plan of additions, improvements and extensions specified
in Ordinances Nos. 2123 and 2133, it is deemed necessary and
advisable that the City to borrow from the State of Washington,
Department of Ecology an aggregate amount up to $2,600,000 on the
terms provided in this Ordinance and the loan agreement authorized
• herein and that the proceeds received from the sale of said bonds
be deposited as provided in Section 1 of Ordinance No. 2123; and
WHEREAS, it is necessary for the immediate preservation of
the public health and safety that funds be obtained quickly to
permit continuity of work on the wastewater treatment facility of
the City and expedite its completion to produce safe and clean
effluent for discharge into public waters.
NOW, THEREFORE, BE IT ORDAINED BY the City of Yakima, Washington,
as follows:
Section 1. Definitions. As used in this Ordinance:
(a) "City".means the City of Yakima, Washington, a
municipal corporation duly organized and existing under and by
virtue of the laws of the State of Washington.
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(b) "Costs of Maintenance and Operation" mean all
normal operating expenses, current maintenance expenses, expense
of reasonable upkeep and repairs, insurance and administrative
expense and pro rata budget charges for City departments where
such charges represent a reasonable distribution of share of
actual cost, but exclude depreciation, payments for debt service
or into reserve accounts, costs of capital additions to or replace-
ments of the System, municipal taxes, or payments to the City in
lieu of taxes.
(c) "Council" means the Council of the City as, the
same shall be duly and regularly constituted from time to time.
(d) "Department" means the State of Washington Department
of. Ecology or its successor under the Loan Agreement.
(e) "Grant Proceeds ".means the moneys contributed or
loaned by any governmental agency or any other source required by
Ordinance No. 2123 to be deposited.in the'Project Fund and appropriated
by Section 3 of this Ordinance to be paid into the Fund.
• (f) "Gross Revenue of the System" mean all earnings,
revenue and moneys received by the City from or on account of the
operations of the System, from any source whatsoever. •
.(,g) "Loan Fund" means the Water and Sewer Revenue Junior
Lien Loan Fund, 1981, of the City created by Section 7 of this
Ordinance.
(h) "Loan" means the obligation created by draws made
by the City of Yakima under the. Loan Agreement authorized by this
Ordinance.
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(i) "Loan Agreement" means the agreement to be executed
between the City and the Department in substantially the form
attached as Exhibit A to this Ordinance and by this reference
incorporated herein.
(j) "Net Revenue" means the Gross Revenues of the
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System less the Costs of Maintenance and Operation and less the
amounts required to be paid into the Outstanding Revenue Bond
Funds and any revenue bond funds hereafter created to pay and
secure any Future Parity Bonds.
• (k) "Outstanding Revenue Bond Funds" mean "Water and •
Sewer Revenue Bond Fund, 1956" created by Ordinance No. B-1714 of
the City as amended by Ordinance No. B-1793, the "Water and Sewer
Revenue Bond Fund, 1964" created by Ordinance No. 475 of the
City, the "Water and Sewer Revenue Bond Fund, 1968" created by
Ordinance No. 986 of the City, and the "Water and Sewer Revenue
Bond Fund, 1978" created by Ordinance No. 2231 of the City, and
shall include the "Principal and Interest Account" and the "Reserve
Account" in the 1956 Bond Fund, the "Reserve Account" in the 1964
Bond Fund, the "Reserve Account" in the 1968 Bond Fund, and the
"Reserve Account" in the 1978 Bond Fund.
(1) "Outstanding Bonds" means:
Amount Authorizing
Series Date of Issue Outstanding Ordinance
Water and Sewer Revenue
Bonds January 1, 1964 $1,025,000 475
Water and Sewer Revenue
Bonds, Series A March 1, 1968 $1,015,000 986
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Water and Sewer Revenue
Bonds, Series B December 1, 1968 $2,800,000 1071
Water and Sewer Revenue
Bonds, 1978 December 1, 1978 $3,500,000 2231
The Outstanding Bonds are the only revenue bonds of the City
outstanding at this time to which any part of the Gross Revenues
• of the System have been pledged for the payment of principal and
interest thereon.
(m) "Parity Bonds" mean any revenue bonds or revenue
warrants issued by the City which have a lien upon the Gross
Revenues of the System to pay and secure the payment of the
principal thereof and interest thereon equal to the lien created
upon the Gross Revenues of the System to pay and secure payment
of the principal of and interest on the Outstanding Bonds. "Parity
Bonds" include the Outstanding Bonds, and any future revenue
bonds or warrants issued on a parity therewith. "Future Parity
Bonds" mean any revenue bonds or revenue warrants which may be
issued in the future as Parity Bonds. -
(n) "Plan Ordinances" mean Ordinances Nos. 2123 and
2133 of the City, as amended by Ordinances No. 2148, No. 2231 and
this Ordinance.
(o) "Project" means the plan of additions and improve-
ments to the wastewater collection treatment and disposal system
of the City described in the Plan Ordinances.
(p) "Project Fund" means the Yakima Wastewater Facilities
Project Fund created by Ordinance No. 2123.
(q) "Revenue Fund" means the Water -Sewer Fund hereto-
fore created by the City.
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(r) "Senior Bonds" means the Outstanding Bonds and any
Future Parity Bonds.
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(s) "System" means the combined water and sewerage
system of the City as it will be added to and improved and extended
with the proceeds of the Loan and as it may be later added to,
extended and improved for as long as the Loan remains outstanding. •
Section 2. Plan of Additions, Improvements To and Extensions
Of The System. The plan of additions and improvements to and
extensions of the System set forth in the Plan Ordinances is
hereby ratified and confirmed, except that:
Section 2 of Plan Ordinance No. 2133 is hereby amended to
read:
Section 2. The estimated cost of acquiring,
constructing and installing the above - provided for
plans of additions and improvements to the existing
system of the City [is] hereby declared to be, as near
as may be, the sum of $31,000,000. , approximately
$20,600,000 of which will be provided from anticipated
grants from the United States and the State of Washington.
The remaining amount of such cost shall be provided
from the proceeds of sale of water and sewer revenue
bonds of the City in the principal amount of not to
exceed $3,500,000, or so much thereof as is determined
to be necessary by the City Council.
As an integral part of the plan of acquiring,
constructing and installing the above - provided for
additions, improvements and extensions, the City shall
issue and sell such water and sewer revenue bonds in
such amount or amounts and at such time or times as
this Council may determine to be to the best interest
of the City and its inhabitants. The exact date or
dates, form, terms, maturities and covenants of such
bonds shall be as hereafter fixed by ordinance or
ordinances of the City.
As an integral part of the plan of acquiring,
constructing and installing the above - provided for
additions, improvements and extensions, the City may
borrow moneys by agreement with agencies of the State
of Washington in anticipation of such grants and bonds.
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The exact date or dates, terms, maturities and
covenants of such loans and agreements shall be as
hereafter fixed by ordinance or ordinances of the
City.
Section 3. Appropriation of Grant Revenue. Proceeds of
anticipated grants from the United States and the State of
Washington resulting from the grant applications described below
or so much thereof as may be required to pay the principal of the
then outstanding Loan are hereby appropriated for the payment of
said principal (said proceeds have hereinbefore been defined as
"Grant Proceeds "). Promptly after deposit in the Project Fund,
such Grant Proceeds shall be transferred to the Loan Fund and
applied as provided by Section j of this Ordinance.
Grant applications, the proceeds of which are subject to the
foregoing appropriation, are:
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Section 4. Authorization of Loan. The City shall enter into an
agreement with the State of Washington Department of Ecology to borrow
from time to time the aggregate principal amount of not to exceed
$2,600,000 for the purpose of providing part of the funds necessary
to purchase, acquire and construct the Project, to pay expenses of
litigation relating to construction of the Project, to pay the expenses •
incidental to the Loan and to pay any outstanding warrants drawn an
the Project Fund as provided by Section 3 of Ordinance No. 2133. The
loan shall mature on or before December 31, 1985, and shall bear
interest at the rate of 9.50 percent per annum from the respective '
dates of draws payable annually on the anniversary date of the draw.
The Loan shall be an obligation only of the Loan Fund and shall
be payable and secured as provided in the Loan Agreement. The Loan shall
not be a general obligation of the City.
Section 5. Redemption Prior to Maturity. The City shall have the
right to pay all or part of the Loan in advance of maturity as provided
in the Loan Agreement. Interest an any portion of the Loan paid in
advance of maturity shall cease on such payment date.
Section 6. Priority of Payments from Revenues of the System.
The Gross Revenues of the System shall be held in the Revenue Fund separate
and apart from all other funds and accounts of the City and used only for
the following purposes and in the following order of priority:
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First, to pay the Costs of Maintenance and Operation of
the System;
Second, to pay the interest on any Parity Bonds;
Third, to pay the principal of any Parity Bonds;
111 Fourth, to make all payments required to be made into
any Reserve Account created to secure the payment of any
Parity Bonds;
Fifth, to pay the interest on the Loan;
Sixth, to pay the principal of the Loan;
Seventh, to retire by redemption or purchase in the
open market any outstanding revenue bonds of the City, to
make necessary additions, improvements and repairs to or
extensions and replacements of the System, or for any other
lawful City purposes.
So long as any portion of the Loan is outstanding, the City
agrees that it will use of the Gross Revenues of the System only
for the foregoing purposes.
Section 7. Payments into Bond Fund. A special fund of the
City, to be known as the Water and Sewer Revenue Junior Lien
Loan Fund, 1981 (the "Loan Fund"), is hereby created in the
office of the Treasurer of the City for the sole purpose of
paying the principal of and interest on the Loan.
A. Principal and Interest Payments. As long as any
principal balanceremain outstanding, the City hereby irrevocably
obligates and binds itself to set aside and pay from the Revenue
Fund into the Loan Fund those amounts which, with any other
moneys as are on hand and available therefor are necessary to pay
the interest due on the
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Loan. Such payments from the Revenue Fund shall be made as
follows:
1. Beginning with the month of August, 1981, on
or before the twentieth day of each month through December,
1981, an amount which is equal to at least one-fifth of the.
interest to become due on January 1, 1982.
2. Beginning with the month of January, 1982,
on or before the twentieth day of each month, and continuing
for as long as any portion of the Loan is outstanding and
unpaid, an amount which with other moneys available therefor
in the Loan Fund will be equal: to at least one-twelfth of
the interest to become due and payable on the next interest
payment date on all of the principal balance then outstanding. •
3. On or before the Loan maturity date (as
determined pursuant to Section 4 of this Ordinance) an
amount which with other moneys available therefor in the Loan
Fund will be equal to the principal of the Loan then outstanding.
The City hereby obligates and binds itself to issue
Future Parity Bonds on or before the Loan maturity date, as may
be necessary and in amounts sufficient to accomplish payment of the
Loan.
B. Priority of Lien of Payments into Loan Fund. The
amounts so pledged to be paid into the Loan Fund are hereby
declared to be a prior lien and charge upon the Gross Revenues of
the Systemsuperior to all other charges of any kind or nature
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whatsoever (including any transfer of money to other funds of the
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City and taxes or payments in lieu of taxes) except the Costs. of
Maintenance and Operation of the System and payments required to
be made into the Outstanding Revenue Bond Funds and any other
revenue bond funds hereafter created to pay and secure the payment.
410 of the principal of and interest on the Parity Bonds.
C. Application of Grant Proceeds. Grant Proceeds
deposited in the Loan Fund shall be applied within thirteen
months from the date of each such deposit to reduce the principal
balance of the Loan outstanding.
D. Investment of Moneys'in Loan Fund. Money.in the
Loan Fund may be invested as permitted by law. All interest
earned and income derived by virtue of such investments shall
remain in the Loan Fund and be used to meet the required deposits
thereto.
E. Sufficiency of Revenues. The City Council hereby
finds that in fixing the amounts to be paid into the Loan Fund
out of the Gross Revenues of the System, it has exercised due
regard for the Costs of Maintenance and Operation and for the
amounts required to pay and secure payment of principal of and
interest on the Outstanding Bonds and has not obligated the City
to set aside and pay into such Fund a greater amount of such
Gross Revenues of the System than in its judgment will be available
over and above the Costs of Maintenance and Operation and the
amounts required to pay and secure payment of the principal of
and interest on the Outstanding Bonds.
Section 8. Disposition of Proceeds of the Loan. Upon the
receipt from time to time of the proceeds of the Loan, such proceeds
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shall be deposited into the Project Fund to be used for the sole
purpose of paying the costs of the Project, for repaying any
advances or loans which may have been made to the Project Fund
from other funds of the City and which were used for paying part
of the cost of the Project, for paying expenses of litigation
relating to construction of the Project, for paying the expenses
. incidental to the Loan and execution of the Loan Agreement, and
for paying any warrants drawn on the Project Fund as provided by
Section 3 of Ordinance No. 2133 of the City.
Any Loan proceeds remaining in the Project Fund after payment
of the foregoing costs and expenses shall be deposited in the
Loan Fund and shall be applied to reduce the payments required to
be made into the Loan Fund or to pay and redeem the Loan or any
portion thereof in accordance with Section 5.of this Ordinance;
Provided, that, any of such moneys so deposited in the Loan Fund
• shall be expended within thirteen months after such deposit.
Section 9. Additional Covenants. The City hereby covenants
and agrees with the Department for as long as any portion of the
Loan remains outstanding as follows:
A. The City shall at all times maintain, preserve and
keep the properties of the System in good repair, working order
and condition and will from time to time make all necessary and
- proper repairs, renewals, replacements, extensions and betterments
thereto, so that at all times the business carried on in connection
therewith will be properly and advantageously conducted, and the
City will at all times operate or cause to be operated said
properties of the System and the business in connection therewith
in an efficient manner and at a reasonable cost.
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B. The City shall fix, maintain and collect rates and
charges for the use of the services and facilities and all com-
modities sold, furnished or supplied by the System, which shall
be fair and nondiscriminatory and shall adjust such rates and
charges from time to time so that Gross Revenues of the System
(together with assessments and installments thereof and interest
and penalties thereon collected in any utility local improvement
district if no Outstanding Bonds remain outstanding) available
for the payment of the interest on the Loan as the same shall
become due shall be equal to at least 1.2 times the amount required
each calendar year hereafter for the payment of the interest on
the Loan after Costs of Maintenance and Operation and after the
amounts required to be paid into the Outstanding Revenue Bond
Funds and any revenue bond funds created to pay and secure any
Parity Bonds but before depreciation and before taxes or payments
in lieu of taxes payable to the City.
C. The City will not sell or otherwise dispose of the.
System in its entirety unless simultaneously with such sale or
other disposition, provision is made for the payment into the
Loan Fund of cash or Government Obligations (as now or hereafter
defined in RCW Ch. 39.53) sufficient (taking into account interest
to be earned on any such Government Obligations) to pay the
principal of and interest on the Loan then outstanding.
The City will not sell, lease, mortgage or in any manner
encumber or otherwise dispose of any part of its System, including
all additions, improvements, and extensions thereof, at any time
made that are used, useful or material in the operation of the
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System unless provision is made for the replacement thereof or
for payment into the Loan Fund of an amount which shall bear the
same ratio to the amount of Loan then outstanding as the revenue .
available for debt service for said Loan for the twelvemonths
preceding such sale, lease, encumbrance or disposal .from the
portion of the utility so leased, encumbered or disposed of bear
to the revenue available for debt service for said Loan from the
entire utility for the same period.
Notwithstanding any other provision of this paragraph, the
City may sell or otherwise dispose of any of the works, .plant,
properties and facilities of the System or any real or. personal
property comprising a part of the same which shall have become
unserviceable, inadequate, obsolete or unfit to be used in the
operation of the System, or no longer necessary, material to or
useful in such operation, without making any deposit into the
Loan Fund.
D. The City will not at any time create or permit to
accrue or to exist any lien or other encumbrance or indebtedness
upon the System or the Gross Revenues of the System, or any part
thereof, prior or superior to the lien thereon for the payment of
the Loan except the' lien thereon for the payment of Parity .Bonds,
and will pay and discharge, or cause to be paid and discharged,
any and all lawful claims for labor, materials or supplies which,
if unpaid, might become a lien or charge upon the Gross Revenues
of the System, or any part thereof, or upon any funds in the
hands of the City, prior to or superior to the lien of the Loan,
or which might impair the security of the Loan.
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E. The City will not furnish or supply or permit the
furnishing or supplying of any commodity, service or facility
furnished by or in connection with the operation of the System,
free of charge to any person, firm or corporation, public or
private, so long as any portion of the Loan is outstanding and
. unpaid.
Section 10. Execution 'of Loan Agreement. The proper officials
of the City are hereby authorized and directed to execute a Loan
Agreement substantially in the form attached hereto as Exhibit A .
and by this reference incorporated herein and to do,all,things
necessary to make draws thereunder from time to time and for the
proper use and application of the proceeds thereof. •
Section 11. Amendments.
A. The Council from time to time and at any, time. may
• .adopt an ordinance or ordinances supplemental hereto, which
ordinance or ordinances thereafter shall become a part of this
Ordinance, for any one or more or all of the following purposes:
1. To add to the covenants and agreements of the
City in this Ordinance contained other covenants and agree-
ments thereafter to be observed, which shall not adversely
. affect the interests of the Department; or to surrender any
right or power herein reserved to or conferred upon the
City..
2. To make such provisions for the purpose of
curing any ambiguities or of curing, correcting or supple-
. menting any defective provision contained in this Ordinance
as the Council may deem necessary or desirable and not.
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inconsistent with this Ordinances and which shall not adversely
affect the interest of the DePartment in any material respect.
Any such supplemental ordinance of the City may be adopted
without the consent of the Department, notwithstanding any of the
provisions of subsection B of this section.
B. With the consent of the Department, the Council 411
may adopt an ordinance or ordinances supplemental hereto for the
purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Ordinance or of any
supplemental ordinance.
It shall not be necessary for the consent of the Department
under this subsection B to approve the particular form of any
proposed supplemental ordinance, but it shall be sufficient if
such consent shall approve the substance thereof.
• C. Upon the adoption of any supplemental ordinance
pursuant to the provisions of this section, this ordinance shall
be deemed to be modified and amended in accordance therewith, and
the respective rights, duties and obligations of theCity under
this ordinance and the Department hereunder shall thereafter be
determined, exercised and enforced thereunder, subject in all
respects to such modification and amendments, and all the terms
and conditions of any such supplemental ordinance shall be deemed
to be part of the terms and conditions of this Ordinance for any
and all purposes.
Section 12. Severability. If any one or more of the cove-
nants or agreements provided in this Ordinance to be performed on
the part of the City shall be declared by any court of competent
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jurisdiction to be contrary to law, then such covenant or cove-
nants, agreement or agreements, shall be null and void and shall
be deemed separable from the remaining covenants and agreements
in this Ordinance and shall in no way affect the validity of the
other provisions of this Ordinance or of the Loan or of the Loan
IIP Agreement.
Section 13. This ordinance is one to provide for the imme-
diate preservation of the public peace, property, health, safety
and welfare of the people of the City of Yakima and an emergency
is hereby declared to exist and this ordinance shall be in full
force and effect immediately upon its passage, approval'and pub -
lication as provided by law and by the City Charter.
PASSED BY THE CITY COUNCIL, signed and approved this 7th
day of July , 1981.
p d /%ii� / 4i4
v Mayor
ATTEST:
"ty C err
APPROVED AS TO FORM:
City Attorney
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CLERK'S CERTIFICATE
I, the undersigned, the duly chosen, qualified and
• acting Clerk of the City of Yakima, Washington, and keeper of
the records of the Council of the City (herein called the
"Council"), DO HEREBY CERTIFY:
- 1. That the attached Ordinance No 2526 (herein
called the "Ordinance") is a true and correct copy of an ordinance
of the City,' as finally adopted at a meeting of the Council held
on the 7th day of July, 1981, and duly recorded in my.office.
2. That said meeting was duly convened and held in all
respects in accordance with law, and to the extent required by
law, due and proper notice of such meeting was given; that a
legal quorum was present throughout the meeting and a legally
sufficient number of members of the Council voted in the proper
manner for the adoption of said.Ordinance; that all other require-.
ments and proceedings incident to the proper adoption or passage
of said Ordinance have been duly fulfilled, carried out end,
otherwise observed; and that I am authorized to execute this',
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certificate.
IN WITNESS WHEREOF, I have hereunto set my. hand and
affixed the official seal of the City this 4 j 7 day of July,
1981.
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Clerk, City of iakima, V
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