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ORDINANCE NO. 1941
AN ORDINANCE of the City of Port Angeles, Washington,
providing for the issuance and sale of water
revenue bonds of the city in the principal amount
of $1,611,000 to pay part of the cost of acquiring,
constructing and installing certain additions and
improvements to and extensions of the existing
water system of the city as authorized by Ordinance
No. 1934; providing the date, form, terms and
maturities of said bonds; providing and adopting
certain covenants and protective features safe-
guarding the payment of the principal thereof and
interest thereon; creating a bond redemption fund
and confirming the sale of such bonds.
WHEREAS, Ordinance No. 1934 of the City of Port Angeles,
Washington, (hereinafter called the "City ") passed July 27, 1977,
authorized the acquisition, construction and installation of
certain additions and improvements to and extensions of the existing
water system of the City, and further provided that a portion of
the cost thereof would be provided by the issuance and sale of
water revenue bonds of the City in the principal amount of not
to exceed $2,636,000; and
WHEREAS, it is deemed necessary and advisable that the
City proceed with the acquisition, construction and installation
of said additions, improvements and extensions, and to pay part
of the cost thereof that it now issue and sell its water revenue
bonds in the total principal amount of $1,611,000; and
WHEREAS, the City has heretofore entered into an agree-
ment with the United States Department of Commerce acting through
its Economic Development Administration whereby the United States
Department of Commerce has agreed to purchase such water revenue
bonds to be issued;
NOW, THEREFORE, BE IT ORDAINED by the Council of the
City of Port Angeles, Washington, as follows:
Section 1. Definitions.
As used in this ordinance the following words shall
have the following meanings:
a. The word "Bonds" means the $1,611,000 principal
amount of water revenue bonds of the City issued pursuant to
this Ordinance.
b. The words "Bond Fund" mean the 1977 Water Revenue Bond
Fund created by Section 12 of this Ordinance.
c. The word "City" means the City of Port Angeles,
a municipal corporation duly organized and existing under the
laws of the State of Washington.
d. The words "Construction Fund" mean the special
fund of the City known as the "1977 Water System Construction
Fund" created by Section 12 of this Ordinance.
e. The words "Costs of Maintenance and Operation"
mean all necessary operating expenses, current maintenance expenses,
expenses of reasonable upkeep and repairs, and insurance and
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.
f. The word "Government" means the Economic Development
Administration of the United States Department of Commerce.
g.
The words "Gross Revenue" mean all earnings,
revenue and moneys, except assessments, received by the City from
or on account of the operation of the System, including the
income from investments of money in the Revenue Fund and any
bond fund or from any other investment thereof except the income
from investments irrevocably pledged to the payment of revenue
bonds pursuant to a plan of retirement or refunding. The words
"Gross Revenue" shall also include federal or state reimbursements
of operating expenses to the extent such expenses are included
as "Costs of Maintenance and Operation."
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h. The words "Net Revenue" mean the Gross Revenue
less the Costs of Maintenance and Operation.
i. The words "Outstanding Bonds" mean the outstanding
water revenue bonds of the City issued under date of January 1,
1960, and any revenue bonds of the City hereafter issued on a
parity of lien with such bonds.
j. The words "Revenue Fund" mean the special fund
of the City designated the Water Utility Fund.
k. The word "System" means the water system of the
City, as such system may be added to, improved and extended for
as long as any of the Bonds are outstanding.
Section 2. Authorization of Bonds.
For the purpose of providing part of the money required
to acquire, construct and install those certain additions and
improvements to and extensions of the System as provided in
Ordinance No. 1934, the City hereby authorizes the issuance of
the Bonds in the total principal amount of $1,611,000.
Section 3. Description of Bonds.
The Bonds shall be designated the "City of Port Angeles
Water Revenue Bonds, 1977," shall be dated September 1, 1977,
shall be in coupon form in the denomination of $5,000 each (except
for Bond No. 1 in the denomination of $1,000), shall bear interest
payable September 1, 1978, and annually thereafter on the first
day of each September, and shall be numbered and mature in the
order of their number on September 1 of each year as follows:
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Bond Nos. Years Amounts Bond Nos. Years Amounts
11 -2 1978 $ 6,000 87 -93 1998 $35,000
3 -4 1979 10,000 94 -101 1999 40,000
5 -6 1980 10,000 102 -109 2000 40,000
7 -9 1981 15,000 110 -118 2001 45,000
10 -12 1982 15,000 119 -127 2002 45,000
0 13 -15 1983 15,000 128 -136 2003 45,000
16 -18 1984 15,000 137 -146 2004 50,000
19 -22 1985 20,000 147 -156 2005 50,000
23 -26 1986 20,000 157 -167 2006 55,000
27 -30 1987 20,000 168 -178 2007 55,000
31 -34 1988 20,000 179 -190 2008 60,000
35 -39 1989 25,000 191 -202 2009 60,000
40 -44 1990 25,000 203 -215 2010 65,000
45 -49 1991 25,000 216 -229 2011 70,000
50 -54 1992 25,000 230 -243 2012 70,000
55 -60 1993 30,000 244-257 2013 70,000
61 -66 1994 30,000 258 -272 2014 75,000
67 -72 1995 30,000 273 -288 2015 80,000
73 -79 1996 35,000 289 -305 2016 85,000
80 -86 1997 35,000 306 -323 2017 90,000
It is hereby found and declared that the final maturity
of the Bonds does not extend beyond the reasonable life expectancy
of the System.
The Bonds shall bear interest at the rate of 5% per
annum payable on the first day of September of each year commencing
September 1, 1978.
Both principal of and interest on the Bonds shall be
payable in lawful money of the United States of America by the
City Treasurer at his office or at the option of the holder at
either of the fiscal agencies of the State of Washington in the
Cities of Seattle, Washington, and New York, New York, or, in
the case of a fully registered Bond, to the owner or owners thereof
at their address or addresses appearing on the registration books of
the City. The Bonds shall be obligations only of the Bond Fund
and shall be payable and secured as provided herein. The Bonds
are not general obligations of the City.
Section 4. Execution of Bonds.
The Bonds shall be signed on behalf of the City by the
Mayor and shall be attested by the City Clerk. Each of the Bonds
shall have the seal of the City impressed thereon. Interest
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coupons shall be executed with the facsimile signatures of said
officials.
Section 5. Redemption Privileges.
The City hereby reserves the right to redeem the outstanding
Bonds in whole, or in part in inverse numerical order, at any time,
at par plus accrued interest to the date of redemption.
Interest on any Bonds so called for redemption shall
cease on such redemption date unless the same shall not be redeemed
upon presentation made pursuant to such call.
The City may purchase outstanding Bonds in the open
market for retirement only.
Section 6. Redemption Notice.
Written notice of any such intended redemption shall
be given by registered mail sent to the Government at least 30 days
prior to the redemption date. In the event that any Outstanding
Bonds are not held by the Government, such notice shall be pub-
lished once at the same time in the official newspaper of the City.
In addition to such publication and mailing, notice shall also
be mailed to Standard & Poor's Corporation and to Moody's Investors
Service, Inc. or to their successors, if any. The mailing of
such notice shall not, however, be a condition precedent to such
redemption.
Section 7. Form of Bonds.
The Bonds shall be in substantially the following form:
UNITED STATES OF AMERICA
No. $5,000
STATE OF WASHINGTON
CITY OF PORT ANGELES
WATER REVENUE BOND, 1977
The City of Port Angeles, a municipal corporation
organized and existing under and by virtue of the laws
of the State of Washington (herein called the "City "),
hereby acknowledges iteslef indebted and for value received
promises to pay to bearer, solely from the sources herein
referred to, the principal sum of
FIVE THOUSAND DOLLARS
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•
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on the first day of September, 19 , unless redeemed prior
thereto as herein provided, with interest thereon from the
date hereof at the rate 5.00% per annum until such
principal sum is paid or payment has been duly provided for,
payable September 1, 1978, and annually thereafter on the
first day of each September. Payment of the interest due
on or before the maturity of this bond shall be made only
upon presentation and surrender of the coupons represent-
ing such interest as the same respectively become due.
Both principal of and interest on this bond are pay-
able in lawful money of. the United States of America, at the
office of the Treasurer of the City, in Port Angeles,
Washington, or, at the option of the holder, at either
of the fiscal agencies of the State of Washington in the
cities of Seattle, Washington, and New York, New York.
The City has reserved the right to redeem the outstand-
ing Bonds in whole, or in part in inverse numerical order,
at any time, at par plus accrued interest to the date of
redemption.
Interest on any Revenue Bonds so called for redemp-
tion shall cease on such redemption date unless the same
shall not be redeemed upon presentation made pursuant to
such call.
Notice of any such redemption shall be given by one
publication thereof in the official City newspaper not more
than forty nor less than thirty days prior to said redemp-
tion date, and by mailing a like notice at the same time to
the Economic Development Administration or to the successor
thereof.
This bond is one of an issue of three hundred twenty -
three bonds of the City of like date and tenor except as
to amount, number and date of maturity in the aggregate
principal amount of $1,611,000. This issue of bonds is
authorized by Ordinance No. 1941 of the City (herein called
the "Bond Ordinance ") for the purpose of providing money to
pay part of the cost of certain improvements to the water
system of the City, all in conformity with the laws of the
State of Washington.
This bond and the bonds of this issue are payable
solely from, the special fund of the City known as the "1977
Water Revenue Bond Fund" (herein called the "Bond Fund ")
created in the office of the Treasurer of the City. The
City has irrevocably obligated and bound itself to pay
into the Bond Fund out of the Net Revenue of the System (as
defined in the Bond Ordinance) or from such other moneys
as may be provided therefor, certain amounts necessary to
pay and secure the payment of the principal of and interest
on such bonds.
The bonds of this issue are not general obligations of
the City.
The City hereby covenants and agrees with the owner and
holder of this bond that it will keep and perform all the
covenants of this bond and of the Bond Ordinance to be by
it kept and performed.
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The City does hereby pledge and bind itself to set
aside from the Revenue Fund out of the Net Revenue of the
System (said terms being defined in the Bond Ordinance) into
said Bond Fund the various amounts required by the Bond
Ordinance to be paid into and maintained in said Fund,
all within the times provided by said Ordinance.
To the extent more particularly provided by the Bond
Ordinance the amounts so pledged to be paid out of the
Revenue of the System into said Bond Fund shall be a lien
and charge upon the Net Revenue of the System junior in rank
to the lien and charges of the January 1, 1960, revenue
bonds of the City, and any bonds hereafter issued on a
parity of lien therewith and superior to all other charges
of any kind or nature whatsoever.
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 1.10 times the maximum
amount required to be paid out of the Bond Fund in any
year hereafter to pay the principal of and interest on all
of such bonds after payment of the principal of and interest
on all January 1, 1960 bonds then outstanding.
The pledge of Net Revenue of the System and other obli-
gations 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 modi-
fications 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
compliance with the Constitution and laws of the State of
Washington 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.
IN WITNESS WHEREOF, the City has caused this bond to
be executed in its name by the facsimile signature of the
Mayor, to be attested by the manual signature of the City
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 September, 1977.
CITY OF PORT ANGELES, WASHINGTON
By
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Mayor
ATTEST:
City Clerk
The interest coupons attached to the Revenue Bonds shall
• be in substantially the following form:
No. $
•
On the first day of , 19 , unless the
bond to which this coupon is appurtenant shall—Have been
duly called for prior redemption and the redemption price
shall have been paid or duly provided for, the City of Port
Angeles (the "City ") will pay to bearer at the office of the
City Treasurer, in Port Angeles, Washington, or, at the
option of the holder, at either of the fiscal agencies of
the State of Washington, in the cities of Seattle, Washington,
and New York, New York, the amount shown hereon in lawful
money of the United States of America, solely out of the
sources referred to in said bond and Ordinance No.
of the City, being the special fund of the City entitled
"1977 Water Revenue Bond Fund," said amount being the annual
interest due that day on its Water Revenue Bond, 1977 dated
September 1, 1977, and numbered
CITY OF PORT ANGELES, WASHINGTON
By
Mayor
ATTEST:
City Clerk
Section 8. Single Fully Registered Bonds. The purchaser
of the Bonds may elect to accept a nonnegotiable bond registered
as to both principal and interest with a face value in the amount
of the Bonds, in lieu of individual bonds. Any such fully regis-
tered bond shall be executed in the manner provided for the Bonds
and shall be of type composition and on paper of sufficient weight
and strength to prevent deterioration throughout the life of the
loan represented by such fully registered bond.
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Such fully registered bond shall be dated September 1,
1977, shall bear interest at the rate specified for the Bonds,
shall mature in installments in the years and amounts set forth
in Section 3 of this ordinance, and shall be in substantially
the following form, with such variations, omissions and insertions
as may be necessary under the circumstances:
UNITED STATES OF AMERICA
No. R -1 $1,611,000
STATE OF WASHINGTON
CITY OF PORT ANGELES
WATER REVENUE BOND, 1977
The City of Port Angeles, Washington (hereinafter
called the "City "), acknowledges itself indebted and for
value received promises to pay to the Economic Development
Administration, United States Department of Commerce, or
its successor (herein sometimes called the "Payee "), or its
registered assigns (herein sometimes called the "Alternate
Payee "), the principal sum of
ONE MILLION SIX HUNDRED ELEVEN THOUSAND DOLLARS
in the following installments on September 1 of each of the
following years:
Years Amounts Years Amounts
1978 $ 6,000 1998 $35,000
1979 10,000 1999 40,000
1980 10,000 2000 40,000
1981 15,000 2001 45,000
1982 15,000 2002 45,000
1983 15,000 2003 45,000
1984 15,000 2004 50,000
1985 20,000 2005 50,000
1986 20,000 2006 55,000
1987 20,000 2007 55,000
1988 20,000 2008 60,000
1989 25,000 2009 60,000
1990 25,000 2010 65,000
1991 25,000 2011 70,000
1992 25,000 2012 70,000
1993 30,000 2013 70,000
1994 30,000 2014 75,000
1995 30,000 2015 80,000
1996 35,000 2016 85,000
1997 35,000 2017 90,000
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in any coin or currency which is legally acceptable on the
respective dates of payments for debts due the United States
of America and to pay interest on the balance of said prin-
cipal from time to time remaining unpaid in like coin or
currency at the rate of 5% per annum payable annually on the
first day of September of each year from date hereof until
the principal amount hereof has been paid or such payment
has been duly provided for.
Payments of principal and interest shall be made by the
City Treasurer directly to the registered owner hereof at the
address last provided by it to the City for such purpose.
Upon final payment of the principal and interest, this bond
shall be submitted to the City for cancellation and surrender.
Both principal of and interest on this bond are payable
solely out of the special account of the City known as the
1977 Water Revenue Bond Fund (the "Bond Fund "), created by
Ordinance No. 1941 of the City (herein called the "Ordinance ").
In addition to the installments of principal required
to be paid by the City as hereinabove set forth, the City,
at its option, shall have the right to prepay any or all
unpaid installments, at any time, in multiples of $5,000, in
the inverse chronological order of such installments, at
the principal amount thereof plus accrued interest to the
date of prepayment.
Notice of any such optional prepayment shall be given
at least thirty days prior to the prepayment date by mailing
to the registered owner of this bond a notice fixing such
prepayment date, and the amount of the principal to be pre-
paid.
As provided in the Ordinance, this bond is exchangeable,
at the sole expense of the City, at any time upon ninety
days' notice at the request of the registered owner hereof,
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and upon surrender of this bond to the City, for definitive
coupon bonds payable to bearer, of the denomination of $5,000
each, bearing interest at the same rate as this bond, with
the same rights of redemption as provided for definitive
bonds in Section 5 of the Ordinance, in an aggregate principal
amount equal to the unpaid principal amount of this bond and
in the form of such coupon bonds as provided for in Section
7 of the Ordinance.
This bond is issued for the purpose of providing funds
to pay part of the cost of acquiring, constructing and installing
certain additions and improvements to and extensions of the Net
water system of the City, is payable solely out of the Gross
Revenue of such system (as defined in the Ordinance) and all
additions and improvements thereto and extensions thereof,
and does not constitute a general indebtedness of the City.
The City hereby covenants and agrees with the owner and
holder of this bond that it will keep and perform all the cove-
nants of this bond and of the Ordinance to be by it kept and
performed.
The City has pledged and bound itself to set aside from
the Net Revenue of its water system and all additions and
improvements thereto and extensions thereof, and pay into
said Bond Fund the various amounts required by the Ordinance
to be paid into and maintained in said Fund all within the
times provided in said Ordinance.
Said amounts so pledged to be paid into said Fund
are hereby declared to be a lien and charge upon such Net
Revenue junior to the lien and charge thereon to pay and secure
the outstanding water revenue bonds issued under date of
January 1, 1960, and any revenue bonds hereafter issued on a
parity of lien therewith, and superior to all other charges
of any kind or nature.
The City has further bound itself to maintain said system
in good condition and repair, to operate the same in an effi-
cient manner and at a reasonable cost, and to establish,
maintain and collect rates and charges for water service
furnished for as long as any of the bonds of this issue are
outstanding that will provide Net Revenue at least equal to
1.1 times the amounts required each calendar year hereafter
to pay and secure the payment of the principal of and interest
on the bonds of this issue after the principal of and interest
on the outstanding January 1, 1960 water revenue bonds of
the City and any bonds issued on a parity therewith, have
been paid.
This bond may be assigned, and upon such assignment the
assignor shall promptly notify the City Treasurer by registered
mail.
It is hereby certified 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, and
that the total indebtedness of the City including this bond
does not exceed any constitutional, statutory or charter
limitation.
IN WITNESS WHEREOF, the City of Port Angeles, Washington,
has caused this bond to be signed on behalf of the City by
its Mayor, to be attested by the City Clerk, and the seal
of the City to be impressed hereon, as of the 1st day of
September, 1977.
Attest:
By
CITY OF PORT ANGELES,
WASHINGTON
By
City Clerk
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Mayor
A fully registered bond shall have endorsed thereon the
following form of assignment:
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned registered owner
thereof hereby sells, assigns and transfer the within bond
unto
DATED
In the presence of:
(Repeat this form of assignment)
As provided in the within bond, notice of any assignment
thereof shall be given by the assignor by registered mail to
the City Treasurer, Port Angeles, Washington, and upon the
receipt of such notice the bond shall be registered as to
both principal and interest on the registration books of
the City in the name of the assignee named above.
Section 9. Any fully registered bond shall be redeem-
able, in whole or in part, to the extent, at the time, in the
manner and at the prices set forth in Sections 5 and 6 hereof.
Any fully registered bond may also be transferred by
the registered owner thereof, provided that such transfer relates
to the entire principal amount of the fully registered bond trans-
ferred, and any such transfer shall be noted on the bond regis-
tration book of the City.
Upon ninety days` written notice by the holder of any
fully registered bond, the City shall cause to be prepared and
shall deliver to such holder, at the City's sole cost and expense,
definitive coupons bonds of type composition and on bond paper of
weight and strength that is customarily used for serial bonds of an
issue comparable to this issue of Bonds.
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Such definitive bonds shall be in the denomination of
$5,000 each (except for Bond No. 1 in the denomination of $1,000),
shall be in the total principal sum of the unpaid balance due
on such fully registered bond, shall be numbered and mature as
provided in Section 3 hereof on those dates of maturity which have
not yet occurred on the date of such exchange, except that if any
prepayment authorized herein shall have been effected, such prepayment
shall be deemed to have redeemed such definitive bonds in inverse
numerical order. Such definitive bonds shall be executed as herein
provided for the Bonds.
Section 10. Pledge of Revenues. The Bonds, together
with the interest thereon, shall be payable from the Net Revenue
of the System and that portion of said Net Revenue which is sufficient
and necessary to pay the principal of and interest on the Bonds
as the same shall become due is hereby pledged and set aside out
of the Revenue Fund into the Bond Fund.
Said amounts so pledged are hereby declared to be a
prior lien and charge upon such Net Revenue and the money in
the Revenue Fund junior to the lien and charge thereon to secure
and pay the principal of and interest on the Outstanding Bonds
of the City and superior to all other charges of any kind or
nature.
Section. 11. Investment of Moneys. All money in the
Bond Fund may be kept in cash or invested in any legal investment
maturing not later than 20 years from date of purchase, and in no
event maturing later than the last maturity of the Bonds outstanding
at the time of such purchase. Interest earned on or profits made
from the sale of such investments shall be deposited in and become
a part of the Bond Fund.
Section 12. Protection and Disposition of Funds. The
"1977 Water System Construction Fund" (hereinbefore defined as the
"Construction Fund ") is hereby established. The proceeds of sale
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of the Bonds (except for accrued interest, if any, which shall
be paid into the Bond Fund) and all moneys received from the
federal government and the State of Washington to pay part of the
cost of the improvements authorized by Ordinance No. 1934 shall
be deposited in the Construction Fund. Interest earned on Construction
Fund moneys shall be deposited in the Construction Fund.
The City's share of any unliquidated damages and any
moneys paid by defaulting contractors or their sureties shall be
deposited in the Construction Fund to assure completion of all of
the additions and improvements to and extensions of the System to
be made.
The following funds and accounts shall be continually
maintained, except as otherwise provided, for as long as any of
the Bonds remain outstanding:
A. Revenue Fund. The Gross Revenue shall be set aside
into the Revenue Fund.
B. Bond Fund. There is hereby created a "1977 Water
Revenue Bond Fund" (hereinbefore defined as the "Bond Fund ") for
the purpose of paying and securing the payment of the principal
of and interest on the Bonds. The City shall set aside and
transfer therein from the Revenue Fund an or before the 20th day
of each month, commencing with the month of September, 1977, and
continuing each month for as long as any of the Bonds are outstanding,
an amount equal to at least one - twelfth (or such larger amount as
may be necessary) of the annual installments of principal and
interest coming due on the Bonds on the next succeeding September 1st.
If the City for any reason shall fail to make such
monthly transfers, then an amount equal to the deficiency shall
be set apart and deposited in the Bond Fund out of the Revenue
Fund in the ensuing month or months, which amount shall be in
addition to the regular monthly deposit required during such
succeeding month or months.
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0
If there ever shall be accumulated in the Bond Fund
amounts in excess of the requirements thereof during the next 12
months for payment of the principal of and interest on the Bonds
outstanding, such excess may be used by the City to call Bonds
for redemption prior to their fixed maturities as authorized
herein, or may be invested as provided in Section 11 hereof.
Section 13. Other Covenants and Agreements. The City
hereby covenants and agrees with the owners and holders of the
Bonds for as long as any of the same remain unpaid as follows:
a. It will acquire all necessary property, both real
and personal, easements, and rights -of -way necessary for the
acquisition, construction and installation of the additions,
improvements and extensions to the System authorized by Ordinance
No. 1934.
b. It will at all times keep and maintain the System
in good repair, working order and condition, will at all times
operate the System and the business in connection therewith in an
efficient manner and at a reasonable cost, and will comply with
all applicable laws of the State of Washington.
c. It will impose and collect rates and charges for
service rendered by the System which are reasonable and such that
Gross Revenue paid into the Revenue Fund will be sufficient at
all times to provide for the payment of the Costs of the Maintenance
and Operation and the installments of principal and interest on
the Outstanding Bonds and on the Bonds, that all service rendered
by the System shall be subject to the full rates prescribed by
the rules and regulations of the City, and that no free service
by the System will be permitted.
d. It will maintain complete books and records relating
to the operation of the System and its financial affairs, and
will cause such books and records to be audited annually at the
end of each fiscal year, and will furnish the government, without
request, a copy of each annual audit report. At all reasonable
times the government shall have the right to inspect the System
and the records, accounts and data of the City relating thereto.
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e. It will carry fire and extended coverage insurance
on the System as is ordinarily carried on the property of similar
public utilities by private companies engaged in the operation
of the same, to the full insurable value thereof, and will also
carry adequate public liability insurance, war risk insurance if
it becomes available, and other kinds of insurance as under good
practices are ordinarily carried on the properties of similar
public utilities by private companies engaged in the operation of
the same. The premiums paid for all such insurance shall be
regarded and paid as a Cost of Maintenance and Operation of the
System.
Section 14. Adequacy of Revenues. The corporate auth-
orities of the City hereby declare in fixing the amounts to be
paid into the Bond Fund as hereinbefore provided that they have
exercised due regard for the Costs of Maintenance and Operation
of the System, and have not obligated the City to set aside and
pay into the Bond Fund a greater amount of money in the Revenue
Fund than in their judgment will be available over and above such
Costs of Maintenance and Operation, and the cost of debt service
on the Outstanding Bonds.
Section 15. Defeasance. In the event that money and /or
"Government Obligations," as such obligations are now or hereafter
defined in Chapter 39.53 R.C.W., 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 amounts (together with
such money, if any) sufficient to pay at maturity or 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 payment, redemption and retirement, then no further
payments need be made into the Bond Fund or any account therein for
the payment of the principal of and interest on the Bonds so provided
for and such Bonds and appurtenant coupons shall then cease to be
entitled to any lien, benefit or security of this ordinance, except
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the right to receive the funds so set aside and pledged', and such
Bonds and appurtenant coupons shall no longer be deemed to be
outstanding hereunder, or under any ordinance authorizing the
issuance of bonds, warrants or other indebtedness of the City.
Section 16. Issuance of Bonds on a Parity with Out-
standing Bonds. The City reserves the right to issue revenue
bonds on a parity of lien with the Outstanding Bonds (which addi-
tional revenue bonds are herein called "Parity Bonds ") but only
upon compliance with the following conditions:
a. That at the time of issuance �f such Parity Bonds,
the City is in compliance with the requirements of Section 12 of
this ordinance and is not in default in meeting payments required
into any bond fund or reserve account securing any Outstanding Bonds.
b. That the City Engineer shall certify that the Net
Revenue (1) for any 12 -month period of the 24 months preceding
the date of delivery of the Parity Bonds to be issued or (2)
projected by him to be received annually following the date of
delivery of the Parity Bonds to be issued, is not less than 1.1
times the amount required in any future year to pay the principal
of and interest on the Bonds, the Outstanding Bonds and Parity
Bonds then outstanding and to be issued, and to make payments
into any reserve account required by the ordinance authorizing
the issuance of any such outstanding bonds.
If the Government is notified of the intention of the City
to issue any such Parity Bonds and such notice is accompanied by
the above described certification of the City Engineer, the failure
of the Government to make written objection to the issuance of such
Parity Bonds within thirty calendar days of receipt of such notification
shall be deemed to constitute a finding by the Government that the
above conditions to the issuance of such Parity Bonds have been met
and the Government may not thereafter challenge the issuance of such
Parity Bonds.
Section 17. Ordinance a Contract. The provisions of
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this ordinance shall constitute a contract between the City and
the Government so long as any of the Bonds remain unpaid.
Section 18. Sale of Bonds. The Bonds shall be sold
to the Government in accordance with its Offer and Loan and Grant,
dated July 15, 1977. The acceptance by the City of said Offer of Loan
and Grant is hereby 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 19. Supplements and Amendments.
a. The City Council from time to time and at any time
may adopt an ordinance or ordinances supplemental hereof, which
ordinance or ordinances thereafter shall become a part of this
ordinance, for any one or more or all of the following purposes:
(1) To add to the covenants and agreements of the City
in this ordinance contained other covenants and agreements there-
after to be observed, which shall not adversely affect the inter-
ests of the holders of any Bonds, or to surrender any right or
power herein reserved to or conferred upon the City.
(2) To make such provisions for the purpose of curing
any ambiguities or of curing, correcting or supplementing any
defective provision contained in this ordinance in regard to such
matters or questions as the Commission may deem necessary or desirable
and not inconsistent with this ordinance and which shall not adversely
affect the interest of the holders of Bonds.
Any such supplemental ordinance of the Council may be
adopted without the consent of the holders of any Bonds at any time
outstanding, 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 Bonds at the time outstand-
ing, the City Council may adopt an ordinance or ordinances supplemental
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hereto for the purpose of adding any provisions to or changing
in any manner or eliminating any of the provisions of this ordinance
or of any supplemental ordinance; provided, however, that no such
supplemental ordinance shall:
(1) Extend the fixed maturity of any Bonds, or reduce
the rate of interest thereon, or extend the time of payments 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 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 Bonds outstanding hereunder shall
thereafter be determined, exercised and enforced thereunder, subject
in all respects to such modification and amendments, and all the
terms and conditions of any such supplemental ordinance shall be
deemed to be part of the terms and conditions of this ordinance
for any and all purposes.
Section 20. Severability. If any one or more of the
covenants and 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 covenants,
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 Bonds.
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Section 21. Effective Date. This ordinance shall
become effective five days from and after its passage, approval
and publication.
PASSED by the Council of the City of Port Angeles,
Washington, at a meeting of said Council held this a 7" day of
AtteSt:,
, 1977 and approved by the Mayor on said date.
By ait,t4,4 Ci 4 /?Ve6. °r
City Clerk
Approv . .s to fo
Published
City A torney
Clime .-� ads /97 f
CITY OF PORT ANGELES,
WASHINGTON
1
I, MARIAN C. PARRISH, do hereby certify that I am the duly chosen
qualified and acting Clerk of the City of Port Angeles, Washington, and
the custodian of its records; that the attached and foregoing is a full,
true and correct copy of Ordinance No 1941, and that said ordinance
was adopted by the affirmative vote of the Port Angeles City Council at
a meeting of
4
, 1977, at which a quorum of the Council
/J
was present; that said ordinance has not been altered or amended, and
the same is in full force and effect.
IN WITNESS WHEREOF, I have hereunto set my hand this oZ 5 ' day of
14(1,64-4i 1977.
92ate.e_t)c WarJeiat
City Clerk