HomeMy WebLinkAbout1955-B-1794 /34
ORT)TNANCE NO 11-1794
AN ORDINANCE of the City of Yakima, Washington, providing for the issuance of $400,00.00
par value of "Water and Sewer Revenue Bonds, 1956," for the purpose of pay-
ing the cost of acquiring, constructing and completing additions to and
betterments and extensions of the sewerage system .of the City, all to be-
come a part of the waterworks utility of the City, as adopted in Ordinance
No. B -1714, as amended by Ordinance No. B -1793; fixing the date, form,
maturities, maximum interest rate, covenants and terms of said bonds; and
providing for the calling of bids for the sale thereof, and declaring an
emergency.
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, passed the 12th day of
December, 1955, adopted a system or plan of additions to and extensions and betterments
of the sewerage system of the City, all to become a part of the waterworks utility of
the City, and authorized the issuance and sale of water and sewer revenue bonds in the
amount of not to exceed $400,000.00 par value to provide the funds required to pay the
cost thereof; and .
WHEREAS, the City Commission now deems it advisable to issue and sell the
total authorized issue of bonds to obtain the funds required to pay the cost of said
system or plan, NOW, THEREFORE,
BE IT ORDAINED BY THE CITY OF YAKIMA, WASHINGTON, as follows:
Section 1. For the purpose of obtaining the funds required to pay the
cost of carrying out the system or plan of additions to and betterments and extensions
of the sewerage system of the City, all to become a part of the waterworks utility of
the City, as specified and adopted in Ordinance No. B -1714, as amended by Ordinance No.
B -1793, there shall be issued and sold "Water and Sewer Revenue Bonds, 1956," of the
City of Yakima, in the principal amount of $400,000.00. The bonds shall be in denomi-
nations of $1,000.00 each, shall be numbered from 1 to 400, inclusive, shall be dated
January 1, 1956, and shall bear interest at a rate or rates not to exceed 5% per annum,
interest to be payable semiannually on January 1st and July 1st of each year, interest
to maturity to be evidenced by coupons to be attached to the bonds, with full obliga-
tion on the part of the City to pay interest at the same rate or rates from and after
the bond maturity dates until the bonds with interest are paid in full. Both principal
of and interest on the bonds shall be payable solely out of the special fund created
by Ordinance No. B -1714 as amended by Ordinance No. B -1793, and known as "Water and
Sewer Revenue Bond Fund, 1956," (hereinafter called the "Bond Fund "). The bonds shall
be a valid claim of the holder thereof only as aginst such fund and the fixed amount of
the revenues of the waterworks utility, including the sewerage system as a part thereof,
pledged to such fund and shall not be a general obligation of the City of Yakima. The
bonds shall mature serially, annually, in accordance with the following schedule:
Bond Numbers Amounts Maturities
1 to 10, Inclusive 10,000 January 1 , 1960
11 to 23, " 13,000 January 1, 1961
24 to- 37,
rt 14,000 January 1, 1962
38 to 51, tt 14,000 January 1, 1963
52 to 66, " ,15,000 January 1, 1964
67 to 81, 't 15,000 January 1, 1965
82 to 97,
it „16,000 January 1, 1966
98 to 113, It 116,000 January 1, 1967
114 to 130, " 1,17,000 January 1, 1968
131 to 147, " 3,17,000 January 1, 1969
148 to 165, t► +18,000 January 1, 1970
166 to 183, " 1,18 , 000 January 1, 1971
184 to 202, tt :,,19,000 January 1, 1972
203 to 221, " i19,000 ' January 1, 1973
ff %20 000 January 1, 1974
222
to 26 " x January 1, 1975
263 to 283,
262, ft ;.21 000 January 1, 1976
284 to 305, tt ",22,000 January 1, 1977
306 to 32$, " 323,000 January 1, 1978
329 to 351, tt 123,000 January 1, 1979
352 to 375, , " ',24 000 January: -1, 1980
376 to 400, tt 1;25,00 January 1,1981
Section 2. The City of Yakima reserves the right to redeem any or all of
the outstanding bonds of said issue at par plus accrued interest on January 1, 1966,or
on any semiannual interest payment date thereafter, in inverse numerical order, highest
numbers first, by giving at least thirty days' notice of such intended redemption by
publication thereof in the official newspaper of the City, which notice is to be pub-
lished once not less than thirty nor more than forty -five days prior to the call date.
Interest on any bonds so called for redemption shall cease on the date fixed for such
redemption upon payment of the 'redemption price into the Bond Fund.
Section 3. The Bond Fund created and established in Ordinance No. B -1714
as amended by No B -1793, is hereby divided "into two accounts, namely, a
"Principal and Interest Account" and a "Reserve Account." So long as bonds are out-
standing against the Bond Fund theCity Treasurer of the City of Yakima shall set aside
and pay into the Bond Fund out of the gross revenues of the waterworks utility, includ-
ing the sewerage system as a part thereof, now belonging.,to or which may hereafter belong
to the City, including all additions, extensions and betterments thereof at any time
made, a fixed amount without regard to any fixed proportion as follows:
(a) Into the "Principal and Interest Account," monthly, beginning on
February 1, 1956, one -sixth of the next ensuing six months' requirements
for interest, and monthly, beginning on February 1, 1959, one - twelfth of
the next ensuing twelve months' requirements for both principal and inter-
est; and •
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ORDINANCE NO. B -1794
(b) Into the "'Reserve Account," the sum of not less than p5,000.00 per year
until the total sum of x'25,000.00 has been accumulated therein, Which total
sum shall be accumulated by no later than January 1, 1961. The "Reserve
Account" may beaccumulated from any other moneys which the City of Yakima
may have available for such purpose in addition to using said revenues
therefor. .
111 The City further agrees that when the total sum of $25,000.00 has been paid
into the "Reserve Account" it will at all times, except for withdrawals therefrom as
authorized herein, maintain that amount therein until there is a sufficient amount in
the Bond Fund to pay the principal of and interest to maturity on all the outstanding
bonds of said issue.
In the event that there should be a deficiency in the "Principal and Inter-
est Account" in the Bond Fund to meet maturing installments of either principal or
interest, as the case may be, such deficiency shall be made up from the "Reserve
Account" by the withdrawal of cash therefrom for that purpose. Any deficiency created
in the "Reserve Account" by reason of any such withdrawal shall then be made up from
the revenues of the waterworks utility, including the sewerage system as a part thereof,
first available after making necessary provisions for the required payments into the
"Principal and Interest Account." The moneys in the "Reserve Account" shall otherwise
be held intact and may be applied against the last outstanding bonds of said issue.
All money in the "Reserve Account" may be kept on deposit in the official
bank depository of the City of Yakima, or, in any national bank, or may be invested
in United States Government obligations maturing not later than twelve years from the
date of purchase and in no event later than the last maturity date of the outstanding
bonds of said issue, and redeemable at a fixed price. Interest earned on any such de-
posits or investments shall be deposited in and become a part of the "Reserve Account"
until there shall be $25,000.00 therein as aforesaid, after which such interest shall
be deposited in the "Principal and Interest Account."
I Section 4. The City of Yakima hereby binds itself irrevocable not to sell,
lease, mortgage, or in any manner encumber or dispose of all of the property of the
waterworks utility, including the sewerage system as a part thereof, now belonging to
or which may hereafter belong to it, including all additions, betterments 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 of the outstanding bonds'.of
said issue in accordance with the terms thereof; and further hereby binds itself irrevo-
cably not to mortgage, sell, lease, or in any manner dispose of any part of the water -
works utility, including the sewerage system as a part thereof, and including all addi-
tions, betterments and extensions thereof at any time made,that is used, useful or
material to the operation of the waterworks utility unless provision is made for the .re-
placement thereof or for payment into the Bond Fund in an amount which shall bear the
same ratio to the amount of outstanding bonds of said issue as the revenue available for
debt service for said bonds for the twelve months preceding such sale, lease, encum-
brance, or disposal from the portion of the utility so leased, encumbered or disposed of
bears to the revenue available for debr 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 re -
tire outstanding bonds at the earliest possible date.
The City further covenants and agrees to maintain in good condition and to
operate the waterworks utility, including the sewerage system as a part thereof, and to
establish, maintain and 'collect such rates for water and for sewerage service as will
produce gross revenues from the waterworks utility, including the sewerage system as a
part thereof, sufficient to permit payment into the Bond Fund of the amounts required
for the payment of the principal of and the interest on the bonds as they become due,
and the amounts required to be paid into the "Reserve Account" in the Bond Fund, and,
in addition thereto, to pay all costs of maintenance and operation and taxes and to meet
the debt service requirements of all presently outstanding water revenue bonds, and other-
wise to meet the obligations of the City as herein set forth and as set forth in Ordinande
No. B -1714, as amended by Ordinance No. B -1793.
Section 5. The City of Yakima will, while any of the 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 trans-
actions relating to the waterworks utility, including the sewerage system as a part
thereof, 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 and income statements of the waterworks utility, including the sewerage system
as a part thereof, in reasonable detail, covering any calendar year not more than ninety
days after the close- of such calendar year, .and it will- grant any holder or holders of
at least twenty -five per cent of the outstanding bonds the right at all reasonable times
to imspect.the entire utility and all records, accounts and data of the .City relating
thereto.
Section 6. The !'Water and Sewer Revenue Bonds, 1956," shall be in substan-
tially the following form:
No.
- $1,000.00
UNITED STATES- OF AMERICA
STATE OF WASHINGTON
CITY OF YAKIMA
WATER AND SEWER REVENUE BOND, 1956
236
ORDINANCE NO. B -1794 .
KNOW 'ALL ° MEN BY THESE PRESENTS that the City of Yakima,
State of Washington, acknowledges itself to owe and for value
received hereby promises to pay to bearer on the 1st day of
January, 1956, the prinicpal sum of
ONE THOUSAND DOLLARS
together with interest thereon at the rate of
per cent ( %) per annum, payable semiannually
on the 1st days of January and July of each year upon the pre-
sentation and surrender of the attached interest coupons as
they severally mature up to the bond maturity date, 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 principal and interest
are payable in lawful money of the-United States of America at
the office of the City Treasurer of Yakima, solely out of the
special fund created by Ordinance No. B -1714, as amended by
Ordinance No. B -1793, and known as "Water and Sewer Revenue Bond
Fund, 1956," (hereinafter called the "Bond Fund ") into which
fund City of Yakima hereby irrevocably binds itself to pay cer-
tain fixed amounts out of the gross revenues of the waterworks
utility, including the sewerage system as a part thereof, and
including all'additions thereto and extensions and betterments
thereof now or at any time hereafter made or constructed with-
out regard to any fixed proportion, namely, an amount sufficient
to pay the principal of and interest on this issue of bonds as
they respectively become due and to accumulate a reserve, all
at the times and in the manner set forth in Ordinance No. B -1714,
as amended by Ordinance No. B -1793, and in Ordinance No. B -1794.
The gross revenues fromthe waterworks utility, including the
sewerage system as a part thereof, and including all additions
thereto and betterments and extensions thereof at any time made
or constructed, are hereby pledged to such payments and the
bonds of this issue shall constitute a charge or lien upon such
gross revenues prior andsaperior to any other charges whatso-
ever, excluding charges for maintenance and operation, except
that the charge or lien upon such gross revenues for the bonds
of this issue shall be subordinate and junior to the charge or
lien upon such gross revenues for any presently outstanding
water revenue bonds, and except further, that the charge or lien
upon such gross revenues for this issue of . bonds shall be on a
parity with the charge or lien upon such gross revenues for any
additional._water and sewer revenue bonds that may be hereafter
issued pursuant to the provisions of Section 7 of Ordinance No.
B -1794.
This bond is one of an issue of $400,000.00 par value of
bonds, all of like date, tenor and effect, except as to matu-
rities (and interest- rates, if more than one interest rate is
bid,) all payable from the said Bond Fund and all issued by the
City of Yakima under and pursuant to the laws of the State of
Washington and Ordinance No. B -1714 as amended by Ordinance No.
B -1793, and Ordinance No. B -1794, of the City for the purpose
of obtaining funds required to pay the cost and expense of
making certain additions to and betterments and extensions of
the sewerage system of the City, all to become a part of the
waterworks utility of the City. Reference is made to said
Ordinances as more fully describing the covenants with and
rights of holders of bonds of this issue.,.
The City of Yakima reserves the right to redeem any or
all of the outstanding bonds of this issue at par plus accrued
interest on January 1, 1966, or on any semiannual interest pay-
ment date thereafter, in inverse numerical order, highest num-
bers first, by giving at least thirty days' notice of such in-
tended redemption by publication thereof_in the official newspaper
of the City, which notice is to be published once not less than
thirty nor more than forty -five days prior to the call date.
Interest on any bonds so called for redemption shall cease on
the date fixed for such redemption upon payment of the redemp-
tion price into the Bond Fund.
The City of Yakima hereby binds itself irrevocably not to
sell, lease, . mortgage, or in any manner encumber or dispose of
all of the property of the waterworks utility, including the
sewerage system as a part thereof, belonging to -or which
may hereafter belong to it, including all additions thereto and
betterments and extensions thereof at any time made, unless pro-
vision is made for payment into the Bond... Fund of a sum sufficient
tb 'pay the principal of and interest on ail., the outstanding bonds'
of this issue in accordance with the terms hereof; and further
hereby binds itself irrevocably not to mortgage, sell, lease,
or in any manner dispose of any part of. the waterworks utility,
including the sewerage system as a part thereof, and including
all.additions thereto and betterments and extensions thereof at
any time made, that is used, useful or material to the operation
of the entire utility, unless provision is made for replacement
thereof or for payment into the Bond Fund 'of an amount which
shall bear the same ratio to the amount .'of. utstanding bonds of
this issue as the revenue available for debt service for said
bonds for the twelve months preceding such sale, lease,. encum-
brance or disposal from the portion of the entire utility so sold,
�— -- ORDINANCE NO. B -1794
leased, encumbered, or disposed of bears to the revenue available
for debt service for said bonds from theentire utility for the
same period. Any moneys so paid into the Bond Fund shall be used '
to retire outstanding bonds at the earliest possible date.
The City further hereby covenants and agrees to maintain in
good condition and to operate the waterworks utility, including
the sewerage system as a part thereof, and to establish, maintain
and collect such rates as will produce gross revenues from the
waterworks utility, including the sewerage system as a part there-
of, sufficient to permit payment into the Bond Fund of the amounts
required for the payment of the principal of and interest on the
bonds of this issue as they become due, and, in addition thereto,
to pay all costs of maintenance and operation and taxes and to
meet the debt service requirements of all presently outstanding
water revenue bonds and sewer revenue bonds, and otherwise to
meet the obligations of the City as set forth in Ordinance No.
B -1714 as amended by Ordinance No. B -1793, and in Ordinance No.
B -1794.
It is hereby certified and declared that this bond is
issued pursuant to and in strict compliance with the Constitution
and laws of the State of Washington and the Ordinances of the City
of Yakima, and that all acts, conditions and thugs required to be
done precedent to and in the issuance of this bond have happened,
been done and performed as required by law.
IN WITNESS WHEREOF, the City of Yakima, Washington, has
caused this bond to be signed by its Mayor and attested by its
Clerk and its corporate seal to be- hereto affixed and the interest
coupons attached to be signed with the facsimile signatures of
I!i said officials this 1st day of January, 1956.
CITY OF YAKIMA, WASHINGTON
BY
MAYOR
ATTEST:
CI CLER
The interest coupons attached to the bonds shall be in substantially the
following form:
On (January)(July) 1st, 19 , the CITY OF YAKIMA, WASHINGTON,
upon presentation and surrender of this coupon will pay to bearer
at the office of the City Treasurer the sum of
( ) DOLLARS in lawful money of the United States of
America from the special fund of the City known as "Water and Sewer
Revenue Bond Fund, 1956," said sum being six months' interest then
due on its "Water and Sewer Revenue Bond, 1956," and numbered
Coupon No.
CITY OF YAKIMA, WASHINGTON
BY
MAYOR
ATTEST:
CITY CLERK
The bonds shall be printed on lithographed forms, shall be signed by the
Mayor and attested by the Clerk and shall have the seal of the City of Yakima affixed
thereto, and the coupons shall bear the facsimile signatures of the Mayor and the Clerk.
Section 7. The City of Yakima 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 revenues of the waterworks utility, in-
cluding the sewerage system as a part thereof, 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,
PROVIDED, however, that it hereby reserves the right to issue additional and/or refunding
water and sewer revenue bonds, which shall constitute a charge and lien upon the revenues
of said waterworks utility, including the sewerage system as a part thereof, and includ-
ing all additions thereto and betterments, replacements and extensions thereof, at any
time made, on a parity with the "Water and Sewer Revenue Bonds, 1956," 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) All payments then required by this ordinance and any ordinance here-
after enacted pertaining to the bonds of said issue shall have been made into the Bond
Fund and maintained intact therein; and all payments then required to have been made
into the bond redemption funds, including any reserve accounts, for all presently out-
standing water revenue bonds shall have been made; and
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ORDINANCE NO. B -1794
(2) The annual net revenues (hereinafter defined) of the waterworks utility,
including the sewerage system as a part thereof, based upon the historical experience
of the entire utility or the pro forma revenues under then existing 'rates over a period
of any twenty -four consecutive months out of the thirty -six months immediately preceeding
the time of the issuance of such additional bonds, will equal at least 1.40 times the
maximum amount required to be paid in any calendar year thereafter on account of inter-
est to accrue and principal to become payable with respect to all indebtedness of the
City payable solely from revenues of the waterworks utility, including the sewerage
system as a part thereof, 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 en-
gineer experienced in municipal utilities. The net revenues of the waterworks utility,
including the sewerage system as a part thereof, shall mean the amount . remaining from
the gross operating revenues after deducting therefrom all costs of operating and main-
taining the utility but before depreciation.
PROVIDED, however, that if such additional bonds proposed to be so issued
are for the sole purpose of refunding outstanding water revenue bonds and /or water and
sewer revenue bonds, such certification of coverage shall not be required if the amount
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 bonds are 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 the
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 payments, and said reserve, to be maintained in such amount so
long as any of said additional bonds are outstanding to the last maturity thereof.
Section 8. The Clerk of the City of Yakima is hereby directed publish
once in the Yaakima Daily Republic of Yakima, Washington,at least ten days "prior to the
bid .opening date, and to publish once each week for two consecutive weeks•in the Daily
Journal of: Commerce of Seattle, Washington, the first publication to be at least fif-
teen days prior to the bid opening date, a Notice of Bond Sale of said bonds calling
for bids for the purchase thereof to be received by the City Clerk of the City of Yak-
ima at the City Hall, Yakima, Washington, until 11:00 o'clock a.m. on the morning of
Tuesday, January 10, 1956, at which time all bids will be publicly opened by the Clerk
and considered at the meeting of the City Commission of the City of Yakima then held
in the City Hall.
Bidders are required to submit a bid for the purchase of the bonds fixing .
the interest rate or rates that the same shall bear. The bids shall specify either (a)
the lowest rate or rates of interest and premium above :par at which the bidder will
chase the bonds, or (b) the lowest rate or rates of.. ihterest at which the bidder will
purchase the bonds at par, or (c) the lowest rate or rates of interest at which the bid-
der will purchase the bonds at a discount of not more than 1 1/2%.
Each bidder shall seal his bid in an envelope with a good faith deposit in
the form of a certified or cashier's check made payable to the Treasurer of the City of
Yakima in the amount of at least 5% of the amount of his bid. Good faith deposits of
unsuccessful bidders will be returned when bids are evaluated and that of the success-
ful bidder, if any, will be retained for forfeit to the City in the event such success-
ful bidder shall fail or refuse to accept the bonds within thirty -five days after the
acceptance of his bid.
1
Each bid shall show the total amount of interest to be paid over the life
of the bonds from the date of issuance, less the premium, if any, or plus the discount,
if any, and the effective interest rate over the life of the bonds.
The City reserves the right to reject any or all bids submitted and to
waive any informality in the bidding, and, if all bids be rejected, the bonds may be re-
advertised for sale by the City Commission in the manner herein provided.
The bonds will be delivered to the purchaser thereof in Seattle, Washington.
The bonds will be furnished by the City and will be sold with the opinion
of Weter, Roberts & Shefelman, bond counsel of Seattle, Washington, approving the legal-
ity of the same, all at the expense of the City. A nonlitigation certificate will be
included in the closing papers.
Section. 9. The inadequacy of the City's existing system of sewerage has
created an emergency and an emergency is hereby declared to exist.
This ordinance,
therefor, is deemed to be an emergency ordinance providing for the immediate preserva-
tion of the public peace, property, health or safety, and shall take effect immediately
upon its passage and publication as provided by law.
PASSED by the unanimous vote of the City Commission of the City of Yakima,
Washington, at a regular meeting thereof and APPROVED by the Mayor thereof, this 12th
day of December, 1955.
ATTEST: PEARL BENJAMIN (S E A L) G. W. BURNS,
City Clerk Mayor
APPROVED AS TO FORM:
ELWOOD HUTC HE SON
City Attorney
ORDINANCE NO. B -1794
.I hereby certify that the foregoing is a full, true and correct copy of Ordinance
No. B -1794 entitled "AN ORDINANCE of the City of Yakima, Washington, providing for the
issuance of $400,000.00 par value of "Water and Sewer Revenue Bonds, 1956," for the pur-
pose of paying the cost of acquiring, constructing and completing additions to and
betterments and extensions of the sewerage system of the City, all to become a part of
the waterworks utility of the City, as adopted in Ordinance No B -1714, as amended by
Ordinance No. B -1793; fixing the date, form, maturities, maximum interest rate, coven -
,, ants and terms of said bonds; and providing for the calling of bids for the sale thereof,
and declaring an emergency." as passed on the 12th day of December, 1955, and that same
li l has been published as required by law.
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