HomeMy WebLinkAbout1339RT HF 11 -3 -54 7
ORDINANCE NO. 1
AN ORDINANCE of the City of Port Angeles, Washington,
providing for the acquisition, construction and
installation of certain additions and improvements
to and extensions of the electric power system of
the city, declaring the estimated cost thereof,
providing for the issuance of $250,000 of electric
revenue bonds to provide funds therefor, providing
the date, form, terms and maturities of said bonds,
creating a Bond Redemption Fund for the payment of
the principal and interest thereof and a Reserve
Account, providing certain covenants and protective
features safeguarding such payments, reserving the
right in the city to issue additional revenue bonds
on a parity with said bonds to be issued, and
declaring an emergency.
WHEREAS, the City of Port Angeles, Washington, now owns,
maintains and operates its own electric power system which is in need
of certain additions, improvements and extensions in order to furnish
the city and its inhabitants with an adequate supply of electric
enerzy for all purposes; and
WHEREAS in order to provide the money necessary to acquire,
construct and install said additions, improvements and extensions, it
is deemed necessary that the city issue its electric revenue bonds in
the principal sum of $250,000;
NOW, THEREFORE, BE IT ORDAINED by the Council of the City
of Port Angeles, Washington, as follows:
4 Section 1. The following described plan and system for the
acquisition, construction and installation of additions and improve-
ments to and extensions of the electric power system of the city is
hereby specified and adopted, to wit:
The city shall acquire a 7500 KVA substation transformer with
15,000 volt outdoir metal -clad switch gear attached and all associated
metering and protective equipment, a four bay 69,000 volt galvanized
steel substation structure equipped with six 69,000 volt disconnect
switches, a 5,000 volt indoor metal -clad switch gear unit contain-
ing six 1,200 amperes, 5,000 volt oil circuit breakers including all
metering and associated equipment, and a 120 volt set of storage
batteries and charging equipment, shall construct a cement block
building for the housing of said 5,000 volt switch gear, storage
batteries and charger on the site of the present city substation
at 2nd and Valley Streets in Port Angeles, and the balance of said
equipment shall be installed at said substation with all necessary
conduit cables and appurtenances necessary to complete this installa-
tion and connect it to the present city electric power system; shall
acquire and install a 69,000 volt transmission line, with two 69,000
volt disconnect switches, from said 2nd and Valley substation to the
existing substation at 2nd and Washington, and thence to the substa-
tion of the Bonneville Power Authority located just outside the
northeast city limits; shall acquire line material, transformers,
meters, substation transformers, capacitors, and all other necessary
equipment and appurtenances, and install the same throughout the
system wherever found to be most necessary and desirable.
The city shall acquire such property, both real and personal,
easements, and rights -of -way as may be necessary to carry out said
plan of improvements, which plan is all as more particularly set forth
in maps, plans and reports prepared by officials of the city and now
on file in the office of the City Clerk.
It is hereby further provided that said plans shall be sub_
ject to such additions or changes as to details or other changes not
affecting the main general plans as shall be authorized by the City
Council_
2.
Section'2. The estimated cost of the acquisition, con-
struction and installation of the above described plan of additions
and improvements to and extensions of the electric power system of
0 the city is hereby declared to be, as near as may be, the sum of
$250,000, which cost shall be paid out of the proceeds of the sale
of the electric revenue bonds of the city hereinafter authorized.
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Section 3. As an integral part of the plan for paying the
cost of acquiring, constructing and installing the hereinbefore de-
scribed additions and improvements to and extensions of its electric
power system, the city shall issue and sell its electric revenue
bonds in the principal sum of $250,000.
Said bonds shall be dated December 1, 1954, shall be in
denominations of $1,000 each, shall be numbered from 1 to 250 in-
clusive, shall bear interest at a rate of not to exceed 6% per annum
payable semiannually on the first days of June and December of each
year, and shall mature in order of their number as follows:
December 1, 1955 $50,000
December 1, 1956 50,000
December 1, 1957 50,000
December 1, 1958 50,000
December 1, 1959 50,000.
Both principal and interest of said bonds shall be payable
in lawful money of the United States of America at the office of the
City Treasurer in Port Angeles, Washington, and shall be obligations
only against the special Bond Redemption Fund created by this
ordinance.
Section 4. Said bonds shall be in substantially the fol-
lowing form:
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UNITED STATES OF AMERICA
NO. $1,000
STATE OF WASHINGTON
CITY OF PORT ANGELES
ELECTRIC REVENUE BOND
1954
KNOW ALL MEN BY THESE PRESENTS:
That the City of Port Angeles, a municipal corporation
of the State of Washington, hereby acknowledges itself to
owe and for value received promises to pay to bearer on the
first day of December, 19, the principal sum of
ONE THOUSAND DOLLARS
together with interest thereon at the rate of a
fi per annum
payable semiannually on the first days of June and December of
each year as evidenced by and upon presentation and surrender
of the attached interest coupons as they severally become due.
Both principal and interest are payable in lawful money of the
United States of America at the office of the City Treasurer
in Port Angeles, Washington, solely out of the special fund
of the city known as "Port Angeles 1954 Electric Revenue Bond
Redemption Fund" created by Ordinance No. of the city.
This bond is one of an issue of electric revenue bonds
of like amount, date and tenor in the aggregate principal sum
of $250,000, which bonds are issued for the purpose of pro-
viding funds to acquire, construct and install certain additions
and improvements to and extensions of the electric power system
of the city pursuant to the laws of the State of Washington and
ordinances of the city regularly adopted, and is payable solely
out of the revenue of such system.
The City of Port Angeles hereby covenants and agrees with
the holder of this bond that it will keep and perform all the
covenants of this bond and of Ordinance No. to be by it
kept and performed.
The city does hereby pledge and bind itself to set aside
from the money in the City Light Fund of the city, and to pay
into said Bond Redemption Fund and the Reserve Account created
therein by said Ordinance No. , the various amounts required
by said ordinance to be paid into and maintained in said Fund
and Account, all within the times provided in said ordinance.
Said amounts so pledged are hereby declared to be a prier lien
and charge upon the money in said Light Fund superior to all
other charges of any kind or nature except the necessary cost
of maintenance and operation of said system.
4.
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The city has further bound itself to maintain said
system in good condition and repair, to operate the same
in an efficient manner and at a reasonable cost, and to
establish, maintain and collect rates and charges for
electric energy that will provide revenue equal to at
least 1.5 times the amount required each calendar year
to pay the principal and interest due on the bonds of this
issue and on any electric revenue bonds which later may be
issued on a parity therewith after necessary costs of main-
tenance and operation of said system have been paid but
before depreciation.
It is hereby certified and declared that said bonds
are issued pursuant to and in strict compliance with the
Constitution and laws of the State of Washington and
ordinances of the City of Port Angeles, and that all
acts, conditions and things required to be done precedent
to and in the issuance of this bond have happened, been
done and performed.
IN WITNESS WHEREOF, the City of Port Angeles, Washington
has caused this bond to be signed by its Mayor, attested by
its Clerk, the corporate seal of the city to be impressed
hereon, and the interest coupons attached hereto to be
signed with the facsimile signatures of said officials
this first day of December, 1954.
CITY OF PORT ANGELES, WASHINGTON
By
Mayor
ATTEST:
City Clerk
The interest coupons to be attached to said bonds shall be
in substantially the following form:
NO.
On the first day of , 19_, the City
of Port Angeles, Washington will pay to bearer at the office
of the City Treasurer in Port Angeles the sum of
DOLLARS in lawful money of the
United States of America out of the special fund of the city
known as "Port Angeles 1954 Electric Revenue Bond Redemption
Fund ", said sum being the semiannual interest due that day
on its electric revenue bond dated December 1, 1954 and
numbered
ATTEST:
City Clerk
5.
CITY OF PORT ANGELES, WASHINGTON
By
Mayor
Section 5. Said bonds shall be signed on behalf of the
city by its Mayor, shall be attested by its Clerk, and shall have
IIthe corporate seal of the city impressed thereon. The interest
coupons attached thereto shall be signed with the facsimile signatures
of said officials.
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Section 6. The city hereby obligates and binds itself to
set aside and pay into the City Light Fund heretofore created, as
collected, all of the gross earnings and revenue of the electric
power system of the city and all additions and improvements thereto
and extensions thereof. All costs of maintaining and operating said
system, all payments required by this ordinance to be made into the
Bond Redemption Fund and Reserve Account hereinafter created, and all
payments which may be required by subsequent ordinances to be made
into any bond redemption fund or reserve account created for the
payment of the principal of and interest on any subsequently issued
electric revenue bonds of the city shall be paid out of said Fund.
Section 7. That there be and is hereby created a special
fund of the city known as "Port Angeles 1954 Electric Revenue Bond
Redemption Fund ", hereinafter called the "Bond Redemption Fund ",
which Fund is to be drawn upon for the sole purpose of paying the
principal of and interest on the bonds authorized herein as the same
shall become due.
The city hereby obligates and binds itself to set aside and
pay into the Bond Redemption Fund out of the money in the City Light
Fund the following fixed amounts necessary to pay the principal of
and interest on all the outstanding bonds of the issue authorized
herein as the same respectively become due and payable.
6.
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Said payments shall be made into the Bond Redemption Fund
on or before the twentieth day of each month in the amounts herein-
after specified:
(a) Beginning with December, 1954, and continuing as long
as any of the bonds authorized herein are outstanding and unpaid, an
amount equal to at least one -sixth of the interest to become due and
payable on the next interest payment date on all of such bonds then
outstanding.
(b) Beginning with December, 1954, and continuing as long
as any of the bonds authorized herein are outstanding and unpaid, an
amount equal to at least one - twelfth of the principal of said bonds
to become due and payable on the next principal payment date.
When there is sufficient money in the Bond Redemption Fund
and Reserve Account hereinafter created to pay the principal and in-
terest to maturity of all the outstanding bonds of this issue, then
no further payments need be made into the Bond Redemption Fund.
Said amounts so pledged to be paid into the Bond Redemption
Fund and the Reserve Account hereinafter created are hereby declared
to be a prior lien and charge upon the money in said City Light Fund
superior to all other charges of any kind or nature except the nec-
essary cost of maintenance and operation of said electric power system.
Section 8. A Reserve Account is hereby created in the Bond
Redemption Fund, and the city hereby agrees that it will net aside and
pay into said Reserve Account on or before December 1, 1956, out of
the money in the City Light Fund and out of any other money which the
city may now or later have on hand and available for such purpose, the
sum of $60,000, 30,000 of which shall be so paid on or before December
1, 1955.
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The city further agrees, when said sum has been paid into
said Reserve Account, that it will at all times maintain that amount
therein until there is a sufficient amount in the Bond Redemption
Fund and Reserve Account to pay the principal and interest to maturity
of all the outstanding bonds of the issue authorized herein.
In the event there shall be a deficiency in the Bond
Redemption Fund to meet maturing installments of either principal
of or interest on the bonds authorized herein, such deficiency shall
be made up from the Reserve Account by the withdrawal of cash there-
from. Any deficiency created in the Reserve Account by reason of any
such withdrawal shall then be made up from money in the City Light
Fund first available after making necessary provision for the required
payments into the Bond Redemption Fund.
All money in the Reserve Account above provided for may be
kept in cash or may be deposited in such bank or banks or invested
as permitted by law. Interest earned on any such investment shall
be deposited in and become a part of the Bond Redemption Fund.
Section 9. The corporate authorities of the city hereby
declare, in fixing the amounts to be paid into the Bond Redemption
Fund and Reserve Account as provided herein, that they have exercised
due regard to the cost of maintenance and operation of said electric
power system, and have not obligated the city to set aside and pay
into such Fund and Account a greater amount of the revenue of said
IIP system than in their judgment will be available over and above such
cost of maintenance and operation.
Section 10. The City of Port Angeles hereby covenants with
the owner and holder of each of the bonds authorized herein as follows:
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(a) That it will establish, maintain and collect rates
and charges for electric energy for as long as any of the bonds au-
thorized herein and any revenue bonds which may be later issued 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 an amount equal to at least 1.5 times the
amount required each calendar year to pay such principal and interest.
The amount "available for the payment of the principal of and interest
on all of such bonds as the same shall become due" is hereby defined
as the "gross revenue of the electric power system of the city and
all additions and improvements thereto and extensions thereof, less
expenses of maintenance and operation of such system but before de-
preciation."
(b) That it will at all times keep and maintain said
electric power system and all additions and improvements thereto
and extensions thereof in good repair, working order and condition,
and will at all times operate said system and the business in connec-
tion therewith in an efficient manner and at a reasonable cost.
(c) That it will not sell or otherwise dispose of any of
the properties of such system, unless the same are no longer used,
necessary or useful in the operation thereof, unless provision is
made for payment into the Bond Redemption Fund of a sum sufficient
to pay the principal of and interest on all the outstanding bonds
authorized herein in accordance with the terms thereof.
Section 11. That it will not create any special fund or
funds for the payment of any other electric revenue bonds that will
rank on a parity with or have any priority over the payments out of
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the City Light Fund into the Bond Redemption Fund and Reserve Account
created herein except that the city reserves the right, for
(a) the purpose of acquiring, constructing and installing
additions and improvements to and extensions of, acquiring necessary
equipment for, or making necessary replacements of or repairs to
equipment or capital improvements to the electric power system, or
(b) the purpose of refunding or purchasing and retiring
prior to their maturity any outstanding electric revenue bonds of
the city,
to issue additional or refunding revenue bonds therefor and to create
a special fund for the payment of the principal thereof and interest
thereon into which fund payments may be made from the City Light Fund
sufficient to pay the principal of and interest on such additional or
refunding bonds and to provide adequate reserves therefor, which such
payments may rank equally with the payments from the City Light Fund
into the Bond Redemption Fund and Reserve Account created herein
upon compliance with the following conditions:
First, that at the time of the issuance of such additional
or refunding bonds there is no deficiency in the Bond Redemption
Fund and Reserve Account created herein or in any bond redemption
fund or reserve account which may have been created for the pay-
ment of the principal of and interest on any revenue bonds issued
on a parity with the bonds authorized herein and prior to the
issuance of such additional or refunding revenue bonds.
Second, that the ordinance providing for the issuance of
such additional or refunding bonds and providing for the payment
of the principal thereof and interest thereon out of a bond
redemption fund shall create a reserve account in such bond
10.
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redemption fund for the purpose of making up any deficiency
therein, and such ordinance shall further provide for the pay-
ment into such reserve account within five years from the date
of the issuance of such additional or refunding bonds of a sum
at least equal to the average annual amount required for debt
service on such additional or refunding revenue bonds.
Third, that at the time of the issuance of such additional
or refunding revenue bonds the city shall have on file a certi-
fied audit from a certified public accountant showing that the
net income of the electric power system for a period of any
twelve consecutive months out of the fifteen months immediately
preceding the month of delivery of such additional or refunding
revenue bonds shall have been at least 1.5 times the debt
service required each calendar year thereafter for the out-
standing bonds of this issue for any revenue bonds which may
have been issued on a parity therewith and for such additional
or refunding revenue bonds.
The words net income" as used in subparagraph Third
immediately above shall be construed as the gross revenue of
the electric power system of the city, including all additions
and improvements thereto and extensions thereof, less reasonable
expenses of maintenance and operation of such system but before
depreciation. or
Ti h, in the event that the certified audit required in
subparagraph Third immediately above may not be obtained, such
additional or refunding revenue bonds may still be issued on a
parity with these bonds and any other outstanding parity bonds
if at the time of the issuance of such additional or refunding
11.
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revenue bonds the city shall have on file a certificate•f rom
an independent licensed professional engineer or engineering
firm not then employed by the city except for the purpose of
giving such certificate, showing that in his or its profes-
sional opinion the net income of the electric power system
for each future calendar year will equal at least 1.5 times
the amount required each such calendar year for debt service
on the outstanding bonds of this issue, on any revenue bonds
which may have been issued on a parity therewith, and on such
additional or refunding revenue bonds.
The words net income" as used in subparagraph Fourth
immediately above shall be construed as the gross revenue of
the electric power system, including all additions and improve-
ments thereto and extensions thereof to be constructed or in-
stalled out of the proceeds of the sale of such additional revenue
bonds, less reasonable expenses of maintenance and operation of
such system but before depreciation, and such "net income" may
include any increase in revenues to be derived by an increase
in rates authorized by the Council up to the time of delivery
of such additional or refunding revenue bonds.
Nothing herein contained shall prevent the city from issuing
any electric revenue bonds or warrants which are a charge upon the
money in the City Light Fund junior or inferior to the payments re-
quired to be made into the Bond Redemption Fund and Reserve Account
created herein or any bond redemption fund or reserve account created
for the payment of the principal of and interest on any revenue bonds
which may be issued on a parity with these bonds.
12.
Section 12. The bonds authorized herein shall be offered for
public sale in such manner as deemed advisable by the City Council.
The money derived from such sale -- exclusive of any accrued
interest, which shall be paid into the Bond Redemption Fund -- -shall be
deposited in and credited to the City Light Fund, which Fund shall be
reimbursed out of such proceeds of sale for the moneys heretofore spent
for the acquisition, construction and installation of the additions and
improvements to and extensions of the electric power system of the city
authorized herein. The balance of such proceeds of sale shall be
credited to the Capital Account of the electric power system in the
City Light Fund, and shall be used solely in payment of the costs of
such additions, improvements and extensions.
Upon the sale of these bonds, the proper city officials are
hereby authorized and directed to do everything necessary for the
prompt execution, issuance and delivery thereof and the proper use
and application of said proceeds of sale.
Section 13. This ordinance is declared to be one necessary
for the immediate preservation of the public peace, property, health
and safety of the people of the City of Port Angeles, Washington. An
emergency is hereby declared to exist, and this ordinance is hereby
declared to be in full force and effect from and after its passage,
approval and publication as provided by law.
PASSED by the Council of the City of Port Angeles at a
regular meeting thereof held this 4th day of November, 1954, and
^N.4
approved:byy the4ayora
.- such date.
— CITY OF PG /NGELE', WASHINGTON
ATTEST: T- '. -. By .J ,ddi. J.� :141.4N s,
Acting Mayor
AS _ 0 0,. .
City Clerk
Of P "STON, THOR " MSON & HOROWITZ
Special Counsel for the City
'Pk 10 sk J lyoV. 6, S, /r517f.
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