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CITY OF PORT ANGELES, WASHINGTON
SOLID WASTE UTILITY REVENUE BONDS, 1984
$565,000
ORDINANCE NO. A3j3
AN ORDINANCE of the City of Port Angeles,
Washington, adopting and specifying a plan for
making additions and betterments to the solid
waste utility system of the City; authorizing
the issuance and sale of solid waste utility
revenue bonds in the principal amount of
$565,000 for the purpose of providing part of
the funds required for acquiring, constructing
and installing certain additions and improve-
ments to the solid waste utility system of the
City; establishing a special fund of the City
for collection of solid waste utility revenues
and a special fund for the payment of solid
waste utility revenue bonds; providing the
covenants, terms and conditions under which
such bonds and future parity bonds shall be
issued; and approving the sale of such bonds.
PASSED: (` - . as
Prepared by:
PRESTON, THORGRIMSON, ELLIS & HOLMAN
2000 IBM Building
Seattle, Washington 98101
TABLE OF CONTENTS*
PAGE
Recitals 1
Section 1. Definitions 1
Section 2. Plan of Additions to the System 5
Section 3. Issuance of the City of Port Angeles
Solid Waste Utility Revenue Bonds, 1984
Redemption
Priority of Payments from Revenue Fund ...
Payments into Revenue Bond Fund
Provision for Defeasance of the Bonds
Bond Covenants
Issuance of Future Parity Bonds
Section 4.
Section 5.
Section 6.
Section 7.
Section 8.
Section 9.
Section 10. Bond Form
Section 11. Execution of the Bonds
Section 12. Bond Registrar
Section 13. Lost or Destroyed Bonds
Section 14. Sale of Bonds
Section 15. Application of Proceeds of Sale of
the Bonds
Section 16. Amendments
Section 17. Severability
Section 18. General Authorization
Section 19. Not Arbitrage Bonds; Not Industrial
Development Bonds
Section 20. Compliance with Environmental Law
Section 21. Prior Acts
Section 22. Effective Date
* This Table of Contents is not a part of this ordinance.
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ORDINANCE NO. ,2 3!3
AN ORDINANCE of the City of Port Angeles,
Washington, adopting and specifying a plan for
making additions and betterments to the sold
waste utility system of the City; authorizing
the issuance and sale of solid waste utility
revenue bonds in the principal amount of
$565,000 for the purpose of providing part of
the funds required for acquiring, constructing
and installing certain additions and improve-
ments to the solid waste utility system of the
City, establishing a special fund of the City
for collection of solid waste utility revenues
and or special fund for the payment of solid
waste utility revenue bonds; providing the
covenants, terms and conditions under which
such bonds and future parity bonds shall be
issued; and approving the sale of such bonds.
WHEREAS, the City of Port Angeles, Washington (the "City "),
has heretofore, by Ordinance No. 1327 passed on May 20, 1954,
created a system for the collection, disposal and processing of
solid waste and for its processing in accordance with Ch. 35.92
RCW;
WHEREAS, the City's solid waste collection, disposal and
processing system presently needs certain improvements, additions
and betterments; and
WHEREAS, it is now deemed necessary and advisable that the
City issue and sell its solid waste utility revenue bonds in the
aggregate principal sum of $565,000 to provide part of the funds
necessary to pay the cost of certain additions and improvements to
the solid waste collection, disposal and processing system of the
City.
NOW, THEREFORE, the City of Port Angeles does ordain:
Section 1. Definitions. As used in this ordinance, the
following words shall have the following meanings:
A. "Annual Debt Service" means, for any year, the
amount required in such year for the payment of the principal of
and interest on the Parity Bonds; provided that, in the event the
i
City issues Term Bonds, the words "principal of and interest on
the Parity Bonds" shall be deemed to exclude from "principal" an
amount of Term Bonds equal to the mandatory deposits of money into
any Sinking Fund Account to provide for payment of the principal
of such Term Bonds, and from "interest" the interest on such Term
Bonds subsequent to the date of the respective deposits, and to
include in lieu thereof all mandatory sinking fund deposits as of
the date required and interest on the Term Bonds provided for by
such deposits only to the dates of the respective deposits.
B. "Average Annual Debt Service" means the average
amount of Annual Debt Service which will become due in any future
year on the Parity Bonds then outstanding.
C. "Bond Register" means the books or records main-
tained by the Bond Registrar containing the name and mailing
address of the owner of each Bond or nominee of such owner and the
principal amount and number of Bonds held by each owner or nomi-
nee.
D. "Bond Registrar" means the fiscal agencies of the
State of Washington, currently Seattle -First National Bank,
Seattle, Washington and J. Henry Schroder Bank & Trust Company,
New York, New York, or any fiscal agent of the State of Washington
that may hereafter be designated as successor to such banks.
E. "Bonds" means the $565,000 City of Port Angeles
Solid Waste Utility Revenue Bonds, 1984, authorized by this
ordinance.
F "City" means the City of Port Angeles, Washington,
a municipal corporation duly organized and existing under and by
virtue of the laws of the State of Washington.
G. "Costs of Maintenance and Operation" means all
necessary operating expenses, current maintenance expenses,
expenses of reasonable upkeep and repairs, and insurance and
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administrative expense, but excludes depreciation, payments for
debt service or into reserve accounts, costs of capital additions
to or replacements of the System, municipal taxes, or payments to
the City in lieu of taxes.
H. "Council" means the general legislative body of the
City as the same shall be duly and regularly constituted from time
to time.
I. "Debt Service Account" means the account of that
name created in the Revenue Bond Fund by Section 6 of this Ordi-
nance.
J. "Future Parity Bonds" means the Parity Bonds issued
by the City after it issues the Bonds.
K. "Improvements Fund" means the 1984 City of Port
Angeles Solid Waste Utility Improvements Fund created by Section 15
of this Ordinance.
L. "Maximum Annual Debt Service" means the maximum
amount of Annual Debt Service which will become due in any future
year on the Parity Bonds then outstanding.
M. "Net Revenue" means the Revenue of the System less
the Costs of Maintenance and Operation.
N. "Parity Bonds" means the Bonds and any solid waste
utility revenue bonds which the City may hereafter issue having a
lien upon the Revenue of the System for the payment of the princi-
pal thereof and interest thereon equal to the lien upon the
Revenue of the System of the Bonds.
0. "Project" means those additions and improvements to
the System authorized by Section 2 of this Ordinance.
P. "Purchaser" means Boettcher & Company, Inc.
Seattle, Washington.
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Q. "Reserve Account" means the Bond Reserve Account
created in the Revenue Bond Fund by paragraph B of Section 6 of
this Ordinance.
R. "Revenue Bond Fund" or "Bond Fund" means the 1984
City of Port Angeles Solid Waste Utility Revenue _ Bond
Fund created in the office of the Treasurer of the City by Sec-
tion 6 of this Ordinance.
S. The words "Revenue Fund" mean the Solid Waste
Utility Revenue Fund of the City created by Section 5 of this
Ordinance.
T. The words "Revenue of the System" mean all earn-
ings, revenue and moneys received by the City from or on account
of the operation of the System, including the income from invest-
ments of money in the Revenue Fund and the Revenue Bond Fund or
from any other investment thereof except the income from invest-
ments irrevocably pledged to the payment of any solid waste
utility revenue bonds pursuant to a plan of retirement or refund-
ing. The words "Revenue of the System" shall also include any
federal or state reimbursements of operating expenses to the
extent such expenses are included as Costs of Maintenance and
Operation of the System.
U. The words "Sinking Fund Account" mean any account
created in the Revenue Bond Fund to amortize the principal of Term
Bonds.
V. The word "System" means the solid waste collection,
disposal and processing system of the City including any addition
• to or expansion thereof hereafter made. The Council may expand
the System by ordinance to include any other public utility system
that the City may by law combine with the System.
W. The words "Term Bonds" mean any Parity Bonds
identified as such in the ordinance authorizing the issuance
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•
thereof, the payment of which is provided for by a requirement for
mandatory deposits of money into a Sinking Fund Account in the
Revenue Bond Fund.
Section 2. Plan of Additions to the System. The City hereby
specifies and adopts the following plan for the acquisition,
construction and installation of certain additions and betterments
to the solid waste collection, disposal and processing facilities
of the System: The City shall acquire a new mechanized solid
waste collection system requiring the acquisition of two (2) new
mechanized trucks, one thousand seven hundred (1,700) new three
hundred (300) gallon garbage cans, two thousand three hundred
(2,300) new ninety (90) gallon garbage cans, fifty (50) new sixty
(60) gallon garbage cans and necessary related equipment. The
City may make such changes in or additions to the foregoing plan
as may be found necessary or desirable, as long as such changes do
not substantially alter the purposes of the plan.
The estimated cost of such plan of additions and betterments
and all costs incidental thereto, is hereby declared to be as
nearly as practicable the sum of $641,1,531, of which amount approx-
imately $565,000 is to be provided ,out of the proceeds of the
sale of the Bonds.
Section 3. Issuance of the City of Port Angeles Solid Waste
Utility Revenue Bonds, 1984. The City shall issue the Bonds in
the principal amount of $565,000 for the purpose of providing part
of the funds necessary to pay the costs of the Project and to pay
the expenses incidental to the issuance of the Bonds. The Bonds
shall be designated the "City of Port Angeles Solid Waste Utility
Revenue'Bonds, 1984," shall be dated October 1, 1984; shall be
issued in fully registered form in the denomination of $5,000 each
or any integral multiple thereof, provided that no Bond shall
represent more than one maturity; shall be numbered separately and
in the manner and with any additional designation as the Bond
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Registrar deems necessary for the purposes of identification;
shall bear interest from their date, until the Bonds have been
paid or their payment duly provided for, at such rates as the
Purchaser has proposed in its proposal dated October 2, 1984 and
the City accepts, the rates per annum payable on April 1, 1985,
and semiannually thereafter on each April 1 and October 1; and
shall mature on April 1 of each year as follows:
Maturity Year
Principal
Amount
1985 $ 30,000
1986 35,000
1987 35,000
1988 40,000
1989 45,000
1990 50,000
1991 55,000
1992 60,000
1993 65,000
1994 70,000
1995 80,000
The City hereby specifies and adopts the system of registra-
tion for the Bonds approved by the State Finance Committee, and
the fiscal agencies of the State of Washington in the cities of
Seattle, Washington, and New York, New York, shall act as authen-
ticating trustee, transfer agent, paying agent and registrar for
the Bonds (collectively, the "Bond Registrar "). Both principal of
and interest on the Bonds shall be payable in lawful money of the
United States of America. Interest on the Bonds shall be paid by
check or draft of the Bond Registrar mailed (on the date such
interest is due) to the registered owners or nominees at the
addresses appearing on the Bond Register on the fifteenth (15th)
day of the month preceding each interest payment date. Principal
of the Bonds shall be payable upon presentation and surrender of
the Bonds to the Bond Registrar by the registered owners or
nominees at the principal offices of either of the fiscal agencies
of the State of Washington in the cities of Seattle, Washington,
or New York, New York.
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The Bonds may be transferred only on the Bond Register
maintained by the Bond Registrar for that purpose upon the sur-
render thereof by the registered owner or nominee or his/her duly
authorized agent and only if endorsed in the manner provided
thereon, and thereupon a new fully registered Bond of like prin-
cipal amount, maturity and interest rate shall be issued to the
transferee in exchange therefor. Such transfer shall be without
cost to the registered owner or transferee. The City may deem the
person in whose name each Bond is registered to be the absolute
owner thereof for the purpose of receiving payment of the prin-
cipal of and interest on such Bonds and for any and all other
purposes whatsoever.
Upon surrender thereof to the Bond Registrar, the Bonds are
interchangeable for Bonds in any authorized denomination of an
equal aggregate principal amount and of the same interest rates
and maturities.
The Bond Registrar shall not be required to issue, register,
transfer or exchange any of the Bonds during a period beginning at
the opening of business on the twentieth (20th) day next preceding
any interest payment date and ending at the close of business on
the interest payment date, or, in the case of any proposed redemp-
tion of the Bonds, after the mailing of notice of the call of such
Bonds for redemption.
Section 4. Redemption.
The City reserves the right to redeem outstanding Bonds in
whole, or in part in inverse order of maturity and by lot within a
maturity in such manner as the Bond Registrar shall determine, out
of any moneys available from any source, on any interest payment
date at the following times and prices expressed as percentages of
the principal amount, plus accrued interest to the date of redemp-
tion:
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On October 1, 1992 and April 1, 1993, at 102.0%
On October 1, 1993 and April 1, 1994, at 101.0%
On October 1, 1994 and thereafter, at 100.0%
If less than all of the principal amount of any Bond is
redeemed, upon surrender of such Bond at the principal office of
the Bond Registrar, there shall be issued to the registered owner,
without charge therefor, a new Bond or Bonds, at the option of the
registered owner, of like maturity and interest rate in any of the
denominations authorized by this resolution.
Notice of any such intended redemption shall be given by
first class mail, postage prepaid, to the registered owners of the
Bonds to be redeemed at the addresses appearing on the Bond
Register not less than thirty (30) days prior to such redemption
date. The requirements of this section shall have been complied
with when notice is mailed as herein provided, regardless of
whether it is actually received by the owner of any Bond. Inter-
est on the Bond or Bonds so called for redemption shall cease on
the date fixed for such redemption unless such Bond or Bonds are
not redeemed upon presentation made pursuant to such call.
The City further reserves the right to use at any time any
surplus Revenue of the System available after providing for the
payments required by paragraphs First through Fifth, inclusive, of
Section 5 of this ordinance, or other available funds, to purchase
any of the Bonds in the open market for retirement only, if the
same may be purchased at a price not exceeding that at which they
could be called for redemption on the first succeeding date on
which they may be called, plus accrued interest.
Section 5. Priority of Payments from Revenue Fund. A
special fund of the City known as the "Solid Waste Utility Revenue
Fund" is hereby been established in the office of the Treasurer of
the City into which shall be deposited the Revenue of the System
as collected, except the interest earned and income derived from
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investments of moneys in the Revenue Bond Fund and the accounts
therein. The Revenue Fund shall be held separate and apart from
all other funds and accounts of the City and the Revenue of the
System deposited in such Fund shall be used only for the following
purposes and in the following order of priority:
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 maturing principal of any Parity
Bonds;
Fourth, to make all payments required to be made into
the Reserve Account created to secure the payment of the Parity
Bonds;
Fifth, to make all payments required to be made into any
revenue bond redemption fund or revenue warrant redemption fund
and debt service account or reserve account created to pay and
secure the payment of the principal of and interest on any revenue
bonds or revenue warrants of the City having a lien upon the
Revenue of the System junior and inferior to the lien thereon for
the payment of the principal of and interest on the Parity Bonds;
Sixth, to retire by redemption or purchase in the open
market any outstanding revenue bonds or revenue warrants of the
City, to make necessary additions, betterments, improvements and
repairs to or extensions and replacements of the System, or for
any other lawful City purposes.
Section 6. Payments into Revenue Bond Fund. A special fund
of the City known as the "1984 City of Port Angeles Revenue Bond
Fund" is hereby created in the office of the Treasurer of the City
for the purpose of paying and securing the payment of the Parity
Bonds. As long as any Parity Bonds are outstanding, the City
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hereby obligates and binds itself to set aside and pay into the
Revenue Bond Fund as collected all Revenue of the System.
A. Payments into Debt Service Account. A special
account known as the Debt Service Account is hereby created in the
Revenue Bond Fund for the purpose of paying the principal of,
premium, if any, and interest on the Parity Bonds.
As long as any of the Bonds remain outstanding, the City
hereby irrevocably obligates and binds itself to set aside and pay
from the Revenue Fund into the Debt Service Account those amounts
necessary, together with Revenue of the System collected and
deposited and such other moneys as are on hand and available
therefor in the Debt Service Account, to pay the interest or
principal and interest next coming due on the outstanding Bonds.
Such payments from the Revenue Fund shall be made on or before the
twentieth (20th) day of each month as follows:
(1) Beginning with the month of October, 1984, and
continuing for as long as any of the Bonds are outstanding
and unpaid, an amount which, with other moneys available
therefor in the Debt Service Account, will be equal to at
least one -sixth (1 /6th) of the interest to become due and
payable on the next interest payment date on all of the Bonds
then outstanding; and
(2) Beginning with the month of October, 1984, and
continuing for as long as any of the Bonds are outstanding
and unpaid, an amount which, with other moneys available
therefor in the Debt Service Account, will be equal to at
least one- twelfth (1 /12th) of the principal of the Bonds
(exclusive of Term Bonds) to become due and payable on the
next principal payment date.
The City covenants and agrees that in the event it issues any
future Parity Bonds which are Term Bonds, it will provide in each
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ordinance authorizing the issuance of the same for the creation of
a Sinking Fund Account and for regular monthly payments to be made
from the Revenue Fund into such Sinking Fund Account sufficient
together with Revenue of the System collected and deposited and
such other moneys as are on hand and available therefor in such
account to amortize the principal of such future Parity Bonds
which are Term Bonds on or before the maturity date thereof or to
purchase "Government Obligations," as such obligations are now or
hereafter defined in RCW Ch. 39.53, as amended, or its successor
statute, if any, sufficient to accomplish such amortization.
B. Payments into Reserve Account. A special account
known as the "Reserve Account" is hereby created in the Revenue
Bond Fund for the purpose of securing the payment of the principal
of and interest on all outstanding Parity Bonds. The City cove-
nants and agrees that upon receipt of the bond proceeds it will
pay out of such bond proceeds and into the Reserve Account Eighty -
five Thousand Dollars ($85,000). The City also covenants and
agrees that it will pay into the Reserve Account out of the
Revenue of the System (or, at the option of the City, out of any
other funds on hand and legally available for such purpose) not
less than approximately equal annual payments sufficient, with
other money in the Reserve Account and otherwise required to be
paid therein, to have on deposit therein by October 1, 1989, a
total amount which will be at least equal to the Average Annual
Debt Service.
The City hereby further covenants and agrees that in the
event it issues any future Parity Bonds it will provide in the
ordinance authorizing the issuance of the same that it will pay
into the Reserve Account out of the Revenue of the System (or, at
the option of the City, out of any other funds on hand Legally
available for such purpose) not less than approximately equal
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additional annual payments so that by five years from the date of
issuance of such future Parity Bonds there will have been paid
into the Reserve Account an amount which, with the money already
on deposit therein, will be at least equal to the Maximum Annual
Debt Service. Such annual payments into the Reserve Account shall
be made not later than December 20 of each year.
The City further covenants and agrees that when the required
deposits have been made into the Reserve Account, it will at all
times maintain therein an amount at least equal to the Average
Annual Debt Service. The City further covenants and agrees that
if the City issues any Future Parity Bonds, it will at all times
maintain in the Reserve Account an amount at least equal to the
Maximum Annual Debt Service. Whenever there is a sufficient
amount in the Revenue Bond Fund, including all accounts therein,
to pay the principal of, premium, if any„ and interest on all
outstanding Parity Bonds, the money in the Reserve Account may be
used to pay such principal, premium, if any, and interest. Money
in the Reserve Account may also be-withdrawn to redeem and retire,
and to pay the premium, if any, and interest due to such date of
redemption, on any outstanding Parity Bonds, as long as the moneys
left remaining on deposit in the Reserve Account are at least
equal to the Maximum Annual Debt Service.
In the event there shall be a deficiency in the Debt Service
Account to meet maturing installments of either interest on or
principal of and interest on the outstanding bonds payable out of
such Account, such deficiency shall be made up from the Reserve
Account by the withdrawal of moneys therefrom. Any deficiency
created in the Reserve Account by reason of any such withdrawal
shall then be made up out of Revenue of the System after making
necessary provision for the payments required to be made by
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subparagraphs First through Third inclusive of Section 5 of this
ordinance.
C. Priority of Lien of Payments into Revenue Bond
Fund. The amounts so pledged to be paid into the Debt Service
Account and the Reserve Account from the Revenue Fund are hereby
declared to be a prior lien and charge upon the Revenue of the
System superior to all other charges of any kind or nature what-
soever except the Costs of Maintenance and Operation of the
System; and except that the amounts so pledged are of equal lien
to the charges upon such Revenue for the payment of the principal
of and interest on any Parity Bonds.
D. Application and Investment of Moneys in Revenue
Bond Fund. Money in the Debt Service Account and Reserve Account
may be invested as permitted by law. Investments in the Debt
Service Account shall mature prior to the date on which such money
shall be needed for required interest or principal payments.
Investments in the Reserve Account shall mature not later than the
last maturity of any then outstanding Parity Bonds. All interest
earned and income derived by virtue of such investments shall
remain in the Revenue Bond Fund and be used to meet the required
deposits into any account therein.
E. Sufficiency of Revenues. The City Council hereby
finds that in fixing the amounts to be paid into the Revenue Bond
Fund out of the Revenue of the System, it has exercised due regard
for the Costs of Maintenance and Operation and has not obligated
the City to set aside and pay into such Fund a greater amount of
such Revenue than in its judgment will be available over and above
the Costs of Maintenance and Operation.
Section 7. Provision for Defeasance of the Bonds. In the
event that money and /or "Government Obligations," as such obliga-
tions are now or hereafter defined in RCW Ch. 39.53, as amended,
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t
or its successor statute, if any, maturing or having guaranteed
redemption prices at the option of the holder at such time or
times and bearing interest to be earned thereon in such amounts as
are sufficient (together with any resulting cash balances) to
redeem and retire part or all of the Bonds in accordance with
their terms, are hereafter irrevocably set aside in a special
account and pledged to effect such redemption and retirement, then
no further payments need be made into the Revenue Bond Fund or any
account therein for the payment of the principal of and interest
on the certain Bonds so provided for and such Bonds shall then
cease to be entitled to any lien, benefit or security of this
ordinance, except the right to receive the funds so set aside and
pledged, and such Bonds shall no longer be deemed to be outstand-
ing hereunder.
Section 8. Bond Covenants.
A. Maintenance and Operation. 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, replace-
ments, 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.
B. Rate Covenant. The City shall establish, maintain
and collect rates and charges for the use of the services and
facilities of and all commodities 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:
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(1) The Revenue of the System will at all times be
sufficient (a) to pay the Costs of Maintenance and Operation,
(b) to pay the principal of and interest on the Parity Bonds,
as and when the same shall become due and payable, (c) to
make adequate provision for the payment of any Term Bonds,
(d) to make when due all payments which the City is obligated
to make into the Reserve Account and all other payments which
the City is obligated to make pursuant to this ordinance, and
(e) to pay all taxes, assessments or other governmental
charges lawfully imposed on the System or the revenue there-
from or payments in lieu thereof and any and all other
amounts which the City may now or hereafter become obligated
to pay from the Revenue of the System by law or contract;
and
(2) The Net Revenue in each calendar year will be
at least equal to 1.30 times the Average Annual Debt Service.
C. Payment of Costs of Maintenance and Operation.
After making or providing for the monthly payments from the
Revenue Fund as required by Section 6 hereof, there shall be
maintained in the Revenue Fund sufficient moneys to enable the
City to meet the Costs of Maintenance and Operation of the System
on a current basis.
D. Sale or Disposition of the System. 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 Revenue Bond Fund of cash or "Gov-
ernment Obligations," as now or hereafter defined in RCW Ch.
39.53, as amended, or its successor statute, if any, sufficient
together with interest to be earned thereon to pay the principal
of and interest on the then outstanding Parity Bonds, nor will it
sell or otherwise dispose of any part of the useful operating
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properties of the System unless such facilities are replaced or
provision is made for payment into the Revenue Bond Fund of the
greatest of the following:
(1) An amount which will be in the same proportion
to the net amount of Parity Bonds then outstanding (defined
as the total amount of the Parity Bonds less the amount of
cash and investments in the Revenue Bond Fund and accounts
therein) that the Revenue from the portion of the System sold
or disposed of for the preceding year bears to the total Net
Revenue for such period; or
(2) An amount which will be in the same proportion
to the net amount of Parity Bonds then outstanding (as
defined above) that the Net Revenue from the portion of the
System sold or disposed of for the preceding year bears to
the total Net Revenue for such period; or
(3) An amount which will be in the same proportion
to the net amount of Parity Bonds then outstanding (as
defined above) that the depreciated cost value of the facili-
ties sold or disposed of bears to the depreciated cost value
of the entire System immediately prior to such sale or
disposition.
The proceeds of any such sale or disposition of a portion of
the properties of the System (to the extent required above) shall
be paid into the Reserve Account in the Revenue Bond Fund.
Notwithstanding any other provision of this subsection D 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
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useful in such operation, without making any deposit into the
Revenue Bond Fund.
E. Liens or Encumbrances. 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 Revenue of the
System, or any part thereof, prior or superior to the lien thereon
for the payment of the 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 Revenue 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 Parity Bonds, or which might impair the security
of the Parity Bonds.
F. Insurance. The City will keep the works, plants
and facilities comprising the System insured, and will carry such
other insurance, with responsible insurers, with policies payable
to the City, against risks, accidents or casualties, at least to
the extent that insurance is usually carried by private corpora-
tions operating like properties, or will implement a self -
insurance program with reserves adequate, in the judgment of the
Council, to protect the City and the holders of the Bonds against
loss. In the event of any loss or damage, the City will promptly
repair or replace the damaged portion of the insured property and
apply the proceeds of any insurance policy for that purpose; or in
the event the City should determine not to repair or reconstruct
such damaged portion of the properties of the System, the proceeds
of such insurance shall be paid into the Reserve Account to the
extent that such transfer shall be necessary to make up any
deficiency in said Reserve Account and the balance, if any, shall,
at the option of the City, be used either for repairs, renewals,
-17- JG69 84/09/24
replacements, or capital additions to the System, for the redemp-
tion of Parity Bonds, or for deposit into the Reserve Account.
G. Books and Accounts. The City shall keep proper
books of account in accordance with any applicable rules and
regulations prescribed by the State of Washington. The City shall
prepare, and any owner or holder of Parity Bonds may, upon written
request, obtain copies of balance sheets and profit and loss
statements showing in reasonable detail the financial condition of
the System as of the close of each year, and the income and
expenses of such year, including the amounts paid into the Revenue
Fund, the Revenue Bond Fund, and into any and all special funds or
accounts created pursuant to the provisions of this ordinance, and
the amounts expended for maintenance, renewals, replacements, and
capital additions to the System.
H. No Free Service. Except to the extent required by
law, 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
Bonds are outstanding and unpaid.
I. Additions and Improvements. The City will not
expend any of the revenues derived by it from the operation of the
System or the proceeds of any indebtedness payable from the
Revenue of the System for any extensions, betterments or improve-
ments to the System which are not legally required or economically
sound, and which will not properly and advantageously contribute
to the conduct of the business of the System in an efficient
manner.
J. Collection of Delinquent Accounts. The City will,
on or before April 1 of each calendar year, determine all accounts
that are delinquent and will take all necessary action to enforce
-18- JG69 84/09/24
s
payment of such accounts against those property owners whose
accounts are delinquent.
Section 9. Issuance of Future Parity Bonds. The City hereby
further covenants and agrees with the owners and holders of each
of the Bonds for as long as any of the same remain outstanding
that the City will not issue any bonds or other obligations having
a greater or equal priority of lien upon the Revenue of the System
to pay and secure the payment of the principal of and interest on
such bonds or other obligations than the lien created upon the
Revenue of the System to pay and secure the payment of the princi-
pal of and interest on the Bonds except as follows:
A. The City reserves the right to issue Future Parity
Bonds for the purposes of
First, providing funds to acquire, construct,
reconstruct, install, or replace any equipment, facilities,
additions, betterments, or other capital improvements to the
System for which it is authorized by law to issue revenue
bonds, or
Second, refunding at or prior to their maturity,
any revenue warrants, or outstanding revenue bonds or other
obligations payable out of the Revenue of the System.
The City also reserves the right, in issuing such Future Parity
Bonds, to pledge that payments will be made out of the Revenue of
the System and into the Revenue Bond Fund and the Reserve Account
therein to pay and secure the payment of the principal of and
interest on such Future Parity Bonds on a parity with the payments
required herein to be made out of such Revenue into such Fund and
Account to pay and secure the payment of the principal of and
interest on any Parity Bonds then outstanding, upon compliance
with the following conditions:
-19- JG69 84/09/24
(1) At the time of the issuance of any future
Parity Bonds there is no deficiency in the Revenue Bond Fund
or the Reserve Account.
(2) The principal of and interest on the future
Parity Bonds shall be payable out of the Revenue Bond Fund
and the requirements for Reserve Account payments in Sec-
tion 6 hereof shall be met.
(3) Prior to the delivery of any Parity Bonds the
City shall have on file in the office of the Clerk of the
City a certificate of an independent professional engineer or
certified public accountant dated not earlier than 90 days
prior to the date of delivery of such future Parity Bonds and
showing that the Net Revenue, determined and adjusted as
hereinafter provided for each calendar or fiscal year after
the issuance of such Parity Bonds (the "Adjusted Net Reve-
nue") will equal at least 1.30 times the Annual Debt Service
in such year.
The Adjusted Net Revenue shall be the Net Revenue
for a period of any twelve consecutive months out of the
twenty -four months immediately preceding the date of delivery
of such proposed Parity Bonds as adjusted by such engineer or
accountant to take into consideration changes in Net Revenue
estimated to occur under one or more of the following condi-
tions for each year after such delivery for so long as any
Parity Bonds, including the Parity Bonds proposed to be
issued, shall be outstanding:
(a) any increase or decrease in Net Revenue
which would result if any change in rates and charges
adopted prior to the date of such certificate and
subsequent to the beginning of such twelve month period,
had been in force during the full twelve month period;
-20- JG69 84/09/24
(b) any increase or decrease in Net Revenue
estimated by such engineer or accountant to result from
any additions, betterments and improvements to and
extensions of any facilities of the System which
(i) became fully operational during such twelve month
period, (ii) were under construction at the time of such
certificate or (iii) will be constructed from the
proceeds of the Parity Bonds to be issued;
(c) the additional Net Revenue which would
have been received if any customers added to the System
during such twelve month period were customers for the
entire period.
Such engineer or accountant shall base his certifi-
cation upon, and his certificate shall have attached thereto,
financial statements of the System audited by the State
Examiner (unless such an audit is not available for a twelve-
month period within the preceding twenty -four months) and
certified by the City Treasurer, showing income and expenses
for the period upon which the same is based.
The certificate of such engineer or accountant
shall be conclusive and the only evidence required to show
compliance with the provisions and requirements of this
subsection A(3).
Notwithstanding the foregoing requirement, if future
Parity Bonds are to be issued for the purpose of refunding at
or prior to their maturity any part or all of the then
outstanding Parity Bonds and the issuance of such refunding
Parity Bonds results in a debt service savings and does not
require an increase of more than $5,000 in any year for
principal and interest on such refunding Parity Bonds, the
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1
certificate required by subsection A(5) of this section need
not be obtained.
B. Nothing herein contained shall prevent the City
from issuing revenue bonds or other obligations which are a charge
upon the Revenue of the System junior or inferior to the payments
required by this ordinance to be made out of such Revenue into the
Revenue Bond Fund and Reserve Account to pay and secure the
payment of any outstanding Parity Bonds.
C. Nothing herein contained shall prevent the City
from issuing revenue bonds to refund maturing Parity Bonds for the
payment of which moneys are not otherwise available.
Section 10. Bond Form. The Bonds shall be in substantially
the following form:
UNITED STATES OF AMERICA
No. $
INTEREST RATE:
STATE OF WASHINGTON
CITY OF PORT ANGELES
SOLID WASTE UTILITY REVENUE BONDS, 1984
MATURITY DATE: CUSIP NO:
SEE REVERSE SIDE FOR CERTAIN DEFINITIONS
REGISTERED OWNER:
PRINCIPAL AMOUNT: DOLLARS
The City of Port Angeles, Washington, a municipal corporation
organized and existing under and by virtue of the laws and Consti-
tution of the State of Washington (the "City "), hereby acknowl-
edges itself to owe and for value received promises to pay to the
Registered Owner identified above, or registered assigns, on the
Maturity Date identified above, the Principal Amount specified
above, unless redeemed prior thereto as provided herein, together
with interest on such Principal Amount from the date hereof or the
most recent date to which interest has been paid or duly provided
for at the Interest Rate set forth above, payable April 1, 1985,
and semiannually thereafter on each April 1 and October 1 until
payment of the principal sum has been made or duly provided for.
Both principal of and interest on this bond are payable in lawful
money of the United States of America. Interest on this bond is
payable by check or draft of the Bond Registrar mailed (on the
-22- JG69 84/09/24
date such interest is due) to the Registered Owner hereof at the
address appearing on the records maintained by the Bond Registrar
as of the fifteenth (15th) day of the month preceding the interest
payment date. Principal shall be paid to the registered owner
hereof upon presentation and surrender of this bond at the prin-
cipal offices of either of the fiscal agencies of the State of
Washington in Seattle, Washington or New York, New York (col-
lectively, the "Bond Registrar ").
Reference is hereby made to additional provisions of this
bond set forth on the reverse side hereof and such additional
provisions shall for all purposes have the same effect as if set
forth in this space. Reference also is made to Ordinance No.
of the City, adopted October 2, 1984, (hereinafter, the "Bond
Ordinance ") as more fully describing the covenants with and the
rights of registered owners of the bonds or registered assigns and
the meanings of capitalized terms appearing on the bonds which are
defined in such Bond Ordinance:
This bond shall not be valid or become obligatory for any
purpose or be entitled to any security or benefit under the Bond
Ordinance until the Certificate of Authentication hereon shall
have been manually signed by the Bond Registrar.
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 ordinances and resolutions of
the City and that all acts, conditions and things required to be
done precedent to and in the issuance of this bond and the bonds
of this issue have happened, been done and performed.
IN WITNESS WHEREOF, the City of Port Angeles, Washington, has
caused this bond to be signed on behalf of the City with the
facsimile signature of its Mayor, to be attested by the facsimile
signature of the City Clerk, and the seal of the City to be
reproduced in facsimile or impressed hereon, as of this 1st day of
October, 1984.
CITY OF PORT ANGELES, WASHINGTON
By
Mayor
ATTEST:
City Clerk
CERTIFICATE OF AUTHENTICATION
Date of Authentication:
This bond is one of the bonds described in the within -
referenced Ordinance No. of City of Port Angeles, Washington,
and is one of the Solid Waste Jtility Revenue Bonds, 1984, dated
October 15, 1984, of such City.
-23- JG69 84/09/24
WASHINGTON STATE FISCAL AGENCY,
as Bond Registrar
By
Authorized Officer
ADDITIONAL BOND PROVISIONS
This bond is one of an issue of solid waste utility revenue
bonds of like date and tenor, except as to number, rate of inter-
est and date of maturity in the aggregate principal amount of and
$565,000 issued pursuant to the laws of the State of Washington
and ordinances of the City Council of the City of Port Angeles
duly and regularly adopted, including the Bond Ordinance, for the
purpose of providing funds necessary to acquire certain additions
and betterments to the System. The principal of and interest on
such bonds are payable only out of the revenue of the combined
solid waste utility system of the City required by law and by
ordinance of the Board of City Council of the City to be paid into
the 1984 City of Port Angeles Solid Waste Utility Revenue Bond
Redemption Fund of the City (the "Bond Fund "), and out of income
from investments held in the Bond Fund.
The City reserves the right to redeem the bonds of this issue
outstanding, on October 1, 1992 and on any interest payment date
thereafter, in whole, or in part in inverse order of maturity and
by lot within a maturity in such manner as the Bond Registrar
shall determine, out of any moneys available from any source, at
the following times and prices expressed as percentages of the
principal amount, plus accrued interest to the date of redemption:
On October 1, 1992 and April 1, 1993, at 102.0%
On October 1, 1993 and April 1, 1994, at 101.0%
On October 1, 1994 and thereafter, at 100.0%
In the event this bond is called for payment prior to its
maturity, a notice of such redemption shall be mailed first class,
postage prepaid, to the registered owner of this bond at the
address appearing on the records maintained by the Bond Registrar
not less than thirty (30) days prior to such redemption date.
Interest on any bond or bonds so called for redemption shall cease
on the date fixed for such redemption unless such bond or bonds
are not redeemed upon presentation made pursuant to such call.
The bonds of this issue are issued in fully registered form
in the denomination of $5,000 each or any integral multiple
thereof, provided that no bond shall represent more than one
maturity. Upon surrender to the Bond Registrar, bonds are inter-
changeable for bonds in any authorized denomination of an equal
aggregate principal amount and of the same interest rate and
maturity. This bond is transferable only on the records main-
tained by the Bond Registrar for that purpose upon the surrender
of this bond by the registered owner hereof or his /her duly
authorized agent and only if endorsed in the manner provided
hereon, and thereupon a new fully registered bond of like prin-
cipal amount, maturity and interest raise shall be issued to the
transferee in exchange therefor. Such exchange or transfer shall
be without cost to the registered owner or transferee. The City
-24- JG69 84/09/24
may deem the person in whose name this bond is registered to be
the absolute owner hereof for the purpose of receiving payment of
the principal of and interest on the bond and for any and all
other purposes whatsoever.
The Bond Registrar is not required to issue, register,
transfer or exchange any of the bonds during a period beginning at
the opening of business on the twentieth (20th) day next preceding
any interest payment date and ending at the close of business on
the interest payment date, or, in the case of any proposed redemp-
tion of the bonds, after the mailing of notice of the call of such
bonds for redemption.
The City hereby covenants and agrees with the owner 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. Refer-
ence is made to the Bond Ordinance for a complete statement of all
terms, conditions and covenants affecting this bond. The City
pledges that all of the Revenue of the System will be paid into
its Revenue Fund (as such terms are defined in the Bond Resolu-
tion) as collected and that it will set aside out of said Revenue
Fund and pay into the Bond Fund and the Reserve Account created
therein the various amounts required by the Bond Ordinance to be
paid into and maintained in the Bond Fund and Reserve Account, all
within the times provided by said Bond Ordinance.
Said amounts so pledged to be paid out of said Revenue of the
System are hereby declared to be a prior lien and charge upon such
Revenue of the System superior to all other liens and charges of
any kind or nature except the costs of maintenance and operation
(as defined in the Bond Ordinance) of the solid waste utility
system and any charges that may hereafter be made on such Revenue
of the System to pay and secure the payment of the principal of
and interest on any solid waste utility revenue bonds of the City
which may later be issued on a parity with the bonds of the issue.
The City has further bound itself to maintain the System in
good repair, working order and condition, to operate the same in
an efficient manner and at a reasonable cost, and to fix, maintain
and collect rates and charges for as long as any of the bonds of
this issue are outstanding that will make available, for the
payment of the principal thereof and interest thereon as the same
shall become due, Net Revenue (as defined in the Bond Ordinance)
in an amount which will be equal to at least 1.30 times the
Maximum Annual Debt Service (as defined in the Bond Ordinance).
The pledge of Revenue of the System and other obligations of
the City under the Bond Ordinance may be discharged at or prior to
the maturity or redemption of the bonds of this issue upon the
making of provisions for the payment thereof on the terms and
conditions set forth in the Bond Ordinance.
Reference to the Bond Ordinance and any and all modifications
and amendments thereof is made for a description of the nature and
extent of the security for the bonds of this issue, the funds or
revenues pledged, and the terms and conditions upon which such
bonds are issued.
It is hereby certified and declared that this bond and the
bonds of this issue are issued pursuant to and in strict com-
pliance with the Constitution and laws of the State of Washington
-25- JG69 84/09/24
•
and ordinances of the City, 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.
The following abbreviations, when used in the inscription on
the face of the within Bond, shall be construed as though they
were written out in full according to applicable laws or regula-
tions.
TEN COM - as tenants in common
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with
right of survivorship and not as tenants in common
UNIF GIFT MIN ACT - Custodian
(Cust) (Minor)
under Uniform Gifts to Minors
Act
(State)
Additional abbreviations may also be used although not listed
above.
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto
PLEASE INSERT SOCIAL SECURITY OR TAXPAYER IDENTIFICATION NUMBER OF
TRANSFEREE
(Please print or typewrite name and address, including zip code of
Transferee)
the within bond and all rights thereunder and does hereby irrevoc-
ably constitute and appoint of
, or its successor, as Agent to
transfer said bond on the books kept by the Bond Registrar for
registration thereof, with full power of substitution in the
premises.
DATED: , 19
SIGNATURE GUARANTEED:
t
-26- JG69 84/09/24
NOTE: The signature of this Assign-
ment must correspond with the name
of the registered owner as it
appears upon the face of the within
bond in every particular, without
alteration or enlargement or any
change whatever.
• Section 11. Execution of the Bonds. The Bonds shall be
e
signed on behalf of the City by the facsimile signature of the
Mayor, shall be attested by the facsimile signature of the City
Clerk, and shall have the official corporate seal of the City
impressed or imprinted in facsimile thereon.
Only such Bonds as shall bear thereon a Certificate of
Authentication in the form hereinbefore recited, manually executed
by the Bond Registrar, shall be valid or obligatory for any
purpose or entitled to the benefits of this ordinance. Such
Certificate of Authentication shall be conclusive evidence that
the Bonds so authenticated have been duly executed, authenticated
and delivered hereunder and are entitled to the benefits of this
resolution.
In case either of the officers of the City who shall have
executed the Bonds shall cease to be such officer or officers of
the City before the Bonds so signed shall have been authenticated
or delivered by the Bond Registrar, or issued by the City, such
Bonds may nevertheless be authenticated, delivered and issued and
upon such authentication, delivery and issuance, shall be as
binding upon the City as though those who signed the same had
continued to be such officers of the City. Any Bond may also be
signed and attested on behalf of the City by such persons as at
the actual date of execution of such Bond shall be the proper
officers of the City although at the original date of such Bond
any such person shall not have been such officer.
-27- JG69 84/09/24
Section 12. Bond Registrar. The Bond Registrar shall keep,
or cause to be kept, at its principal corporate trust office,
sufficient records for the registration and transfer of the Bonds
which shall at all times be open to inspection by the City. The
Bond Registrar is authorized, on behalf of the City, to authenti-
cate and deliver Bonds transferred or exchanged in accordance with
the provisions of such Bonds and this resolution and to carry out
all of the Bond Registrar's powers and duties under this resolu-
tion.
The Bond Registrar shall be responsible for its representa-
tions contained in the Certificate of Authentication on the Bonds.
The Bond Registrar may become the owner of any Bonds with the same
rights it would have if it were not the Bond Registrar, and to the
extent permitted by law, may act as depositary for and permit any
of its officers or directors to act as a member of, or in any
other capacity with respect to, any committee formed to protect
the rights of Bond owners.
Section 13. Lost or Destroyed Bonds. In case the Bonds or
any of them shall be lost, stolen or destroyed, the Bond Registrar
may execute and deliver a new Bond or Bonds of like amount, date,
and tenor to the registered owner thereof upon the owner's paying
the expenses and charges of the District and the Bond Registrar in
connection therewith and upon his/her filing with the City
Treasurer and the Bond Registrar evidence satisfactory to said
Treasurer and Bond Registrar that such Bond or Bonds were actually
lost, stolen or destroyed and of his/her ownership thereof, and
upon furnishing the City and Bond Registrar with indemnity satis-
factory to such City Treasurer and Bond Registrar.
Section 14. Sale of Bonds. The sale of the Bonds to
Boettcher & Company - Northwest, Seattle, Washington, pursuant to
their proposal dated October 2, 1984, and upon the terms, condi-
-28- JG69 84/09/24
tions, covenants and price as set forth in said proposal and in
this ordinance, is hereby approved, ratified and confirmed. The
proper officials of the City are hereby authorized and directed to
do all things necessary for the prompt execution and delivery of
the Bonds and for the proper use and application of the proceeds
of sale thereof.
Section 15. Application of Proceeds of Sale of.the Bonds.
Upon the sale of the Bonds the proceeds thereof (except for
accrued interest, which shall be paid into the Debt Service
Account in the Revenue Bond Fund) shall be utilized as follows:
A. The City shall first pay Eighty -five Thousand
Dollars ($85,000) of the proceeds of the Bond into the Reserve
Account.
B. There is hereby created a special fund of the City
known as the "City of Port Angeles Solid Waste Utility Improve-
ments
after
shall
costs
Fund, 1984." All of the proceeds of the Bonds remaining
payment
be paid
of the
into the Reserve Account pursuant to Paragraph 15(A)
into such Improvements Fund and utilized to pay the
acquisition, construction and installation of the
Project, and costs incidental thereto, and to pay all costs
incurred in connection with the issuance and sale of the Bonds.
Such bond proceeds not immediately needed to pay Project
costs and the costs of issuance and sale of the Bonds may be
deposited in or with such institutions or invested in such obliga-
tions as may now or hereafter be permitted cities of the State of
Washington by law and which will mature prior to the date on which
the moneys so deposited or invested shall be needed. All interest
earned and income or profits derived by virtue of such investments
shall remain in the fund or funds in which such proceeds have been
deposited and be used for the purposes for which the -Bonds are
being issued. Bond proceeds, or income therefrom, not expended
-29- JG69 84/09/24
upon completion of the Project, may be used, first, to make
additions and improvements to the System as deemed necessary by
the City Council; and second, to pay the principal of and interest
on any Parity Bonds.
Section 16. Amendments.
A. The Council from time to time and at any time may
pass an ordinance or ordinances supplemental hereof, which ordi-
nance or ordinances thereafter shall become a part of this ordi-
nance, 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, other covenants and agreements
thereafter to be observed, which shall not adversely affect
the interests of the holders of any Parity Bonds, or to
surrender any right or power herein reserved.
(2) To make such provisions for the purpose of
curing any ambiguities or of curing, correcting or sup-
plementing any defective provision contained in this ordi-
nance or any ordinance authorizing future Parity Bonds in
regard to matters or questions arising under such ordinances
as the Council may deem necessary or desirable and not
inconsistent with such ordinances and which shall not
adversely affect, in any material respect, the interest of
the holders of Parity Bonds.
Any such supplemental ordinance may be adopted without
the consent of the holders of any Parity Bonds at any time out-
standing, notwithstanding any of the provisions of subsection B of
this section.
B. With the consent of the holders of not less than
65% in aggregate principal amount of the Parity Bonds at the time
outstanding, the Council may pass an ordinance or ordinances
supplemental hereto for the purpose of adding any provisions to or
-30- 3G69 84/09/24
•
1
changing in any manner or eliminating any of the provisions of
this ordinance or of any supplemental ordinance; provided, how-
ever, that no such supplemental ordinance shall:
(1) Extend the fixed maturity of any Parity Bonds,
or reduce the rate of interest thereon, or extend the time of
payment of interest from their due date, or reduce the amount
of the principal thereof, or reduce any premium payable on
the redemption thereof, without the consent of the holder of
each bond so affected; or
(2) Reduce the aforesaid percentage of bondholders
required to approve any such supplemental ordinance, without
the consent of the holders of all of the Parity Bonds then
outstanding.
It shall not be necessary for the consent of bondholders
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 the City under
this ordinance and all holders of Parity Bonds outstanding here-
under shall thereafter be determined, exercised and enforced
thereunder, subject in all respects to such modification and
amendments, and all 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.
B. Parity Bonds executed and delivered after the
execution of any supplemental ordinance passed pursuant to the
provisions of this section may have a notation as to any matter
provided for in such supplemental ordinance, and if such supple-
-31- 3G69 84/09/24
•
1
mental ordinance shall so provide, new bonds so modified as to
conform, in the opinion of the Council, to any modification of
this ordinance contained in any such supplemental ordinance, may
be prepared and delivered without cost to the holders of any
affected Parity Bonds then outstanding, upon surrender for cancel-
lation of such bonds, in equal aggregate principal amounts.
Section 17. 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
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 any Parity Bonds.
Section 18. General Authorization. The Mayor, the Treas-
urer, and the Clerk of the City and each of the other appropriate
officers of the City are each hereby authorized and directed to
take such steps, to do such other acts and things, and to execute
such letters, certificates, agreements, papers, financing state-
ments, assignments or instruments as in their judgment may be
necessary, appropriate or desirable in order to carry out the
terms and provisions of, and complete the transactions contem-
plated by, this ordinance.
Section 19. Not Arbitrage Bonds; Not Industrial Development
Bonds. The City covenants and agrees that throughout the term of
the Bonds no part of the proceeds of the Bonds or any other moneys
or obligations held under this ordinance shall at any time be used
for any purpose, nor shall the City take any other action, which
would cause any Bond to be (i) an "arbitrage bond" under Section
103(c) of the Internal Revenue Code of 1954, as amended, and the
applicable regulations thereunder or (ii) an "industrial develop-
-32- JG69 84/09/24
s
ment bond" under Section 103(b) of the Internal Revenue Code of
1954, as amended, and the applicable regulations thereunder.
Section 20. . Compliance with Environmental Laws. The City
hereby finds that it has taken any and all actions heretofore
required, and hereby covenants that it shall take any and all
actions hereafter required to comply with any and all applicable
federal, state and local environmental laws and the applicable
regulations thereunder including, but not limited to, Chapter
43.21C RCW, Chapter 70.95 RCW, Chapter 70.105 RCW and Chapter
70.105A RCW and the federal Resource Conservation and Recovery
Act of 1976, 42 U.S.C. §§ 6901 -6987, all as now and hereafter
amended.
Section 21. Prior Acts. All acts taken pursuant to the
authority of this ordinance but prior to its effective date are
hereby ratified and confirmed.
Section 22. Effective Date. This ordinance shall be effec-
tive five days after the date of its publication.
PASSED by the Council of the City of Port Angeles at a
regular meeting thereof, held this day of , 1984.
ATTEST_
•, City Clerk
Passed: e 1r o�� `TiS T
Published: Q3-e - (j, (T3
CITY OF PORT ANGELES, WASHINGTON
By
Mayor
-33- JG69 84/09/24