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HomeMy WebLinkAbout639 - Ordinance - Waterworks Utility Extensions, Betterments of AdditionsTOM OF PORT ORCHARD, WASHINGTON ORDIN&E NO. JN ORDINANCE specifying and adopting a system or plan of additions to and betterments and extensions of the waterworks utility of the Town of Port Orchard, Washington; declaring the estimated cost thereof, as nearly as may be; providing for the issuance and sale of not to exceed $95,000.O.O par value of water revenue bonds in one or more series to obtain funds with which to pay the cost of said system or plan; creating a special fund to provide for the payment of said bonds; providing certain other protective features safeguarding the payment thereof; and authorizing and directing the Town officials to proceed with the improvement. BE IT ORDAINED BY THE TOWN COIF OF THE TOWN OF PORT ORCHARD, WiINGTON, as follows Sect. The existing waterworks utility of the Town of Port Orchard is in part in such condition that the public health, welfare., safety and convenience require and it is advisable that the additions to and betterments and extensions of. the waterworks utility of the Town* herein- after provided for be made. Sect. The gross revenues and benefits to be derived from the operation and maintenance of the waterworks utility of the Town and the additions, extensions and bettezmets thereto herein provided for at the rates to be charged for water service on the entire utility will, in the Judgment of the Town Council, be more than sufficient to meet all expenses of operation and maintenance thereof and to permit the setting aside into a special fund out of the gross revenues of the entire utility sufficient amounts to pay the interest on the bonds herein authorized to be issued as such interest becomes due and payable and to pay and redeem all of said bonds at maturity. section S® The Town of Port Orchard hereby specifies and adopts a system or plan for making additions to and betterments and extensions of the existing waterworks utility of the Town which shall consist of the followings (1) Thereshall be constructed and installed at Well �6 a water storage reservoir and rump house. (2) There shall be constructed and installed the following water mains at the following approximate loca- tions: (a) Approximately 6v,J lineal feet of a inch cast iron water pipe from the well house north to the existing 6 inch line on State Highway $14, (b) a.pproximatel,, 850 lineal feet of 6 inch cast iron waver Nine from 'ell #5 south to Third Street, (c) Approximately l,0O. lineal feet of 6 inch cast iron water pipe to replace the old wood pipe in Prospect and Bank Streets, (d) Approximately 4, 2u; lineal feet of 10 inch cast iron water pipe on Sidney Street fromKendall Street to Tremont Street, to supplement the existing 4 inch water pipe, (e) Approximately 4,200 lineal feet of 666 inch cast iron water pipe on Maple Street from Third Street south to the south Gity Limits, thence west to the reservoir at Sidney Street on Kendal Street and east to Mitchell Road, along Kendall Street produced, (f) Approxirsatelyy 800 lineal feet of 4 inch steel pipe, paper wrapred, on Division Street from Seattle Street to Maple Street, to replace the exist- ing 4 inch wood pipe, and (g) Approximately 803 lineal feet of 6 inch cast iron water pipe on Tremont Street from Sidney Road west to Reward Avenue. (3) A 20,0.:c gallon wood water tank shall be installed at an appropriate location, and the Molzans tower shall be repaired if acquired by the Town. There shall be included in the foregoing the acquisition and in- •stallation of all necessary valves, fittings, couplings, connections, equip - merit and ap..urtenances and the acquisition of any easements, rights of way and water rights that may be required; and there shall be included the per- formance of such work as may be incidental and necessary to the foregoing construction and installation. in lieu of the material heretofore specified such other suitable material may be used as may be deemed advisable and necessary by the Town Council. The Town Council may modify the details of the foregoing system or - 2 - plan where in its judgment it appears advisable, provided, such aodtfica- tions do not substantially alter the purposes hereinbefore set forth* Section 4. The life of the foregoing additions, betterments and extensions is hereby declared to be at least thirty years. Section b. The estimated cost, as nearly as may be, of the afore- said system or plan of additions, extensions and betterments, ie declared to be $95,000000. Section 6, The cost of acquiring, constructing and making the fore- going additions to and betterments and extensions of said waterworks utility shall be paid from the proceeds received from the issuance and sale of water revenue bonds in the amount of not to exceed $95,000.00 par value. It is the intention of the Town to acquire and construct and complete such portions of the foregoing system or plan of additions to and betterments and extensions of the waterworks utility of the Town, as from time to time theTown Council shall deem advisable, The bonds shall be issued in one or more series at such times as the Town Council shall deem advisable. The bonds shall be entitled "Pater Revenue Bonds, 1957," with series designations following, if issued in series. The bonds shall bear interest at a rate or rates not .to exceed 6% per annum, payable semiannually, and shall be numbered from 'one" upwards, consecutively, within each series as issued. The bonds shall be issued in such series; shall be in such denominations and form; shall bear such date or dates and interest rate or rates; shall be payable at such place or places; shall mature serially in accordance with such schedule, be- ginning not earlier than one year after date of issuance and ending not later than thirty years thereafter; shall have such option of payment prior to maturity; shall guarantee such coverage and collection of rates; shall pro- vide for such additional funds and accounts; and shall contain and be sub- ject to such provisions or covenants as shall be hereafter provided by ordinance. Section 7. The bonds shall be payable solely out of the special fund herein created and shall be a valid claim of the holder thereof only as -3- n against such special find, and the amount of, the revenues of the waterworks utility pledged to such special fund, and shall not be a genaal obligation of the Town of Port Orchard, Washington® Sec® There shall be. and hereby is created and established in the office of the Treasurer of the Town of Port Orchard a special fund to be known as °°Water Revenue Bond Fund, 1957," which fund is to be drawn upon for the sole purpose of paying the principal of and interest upon the bonds. From and after the date thereof and so long thereafter as bonds are outstand- ing against such fund the Town Treasurer shall set aside and pay into said fund out of the .gross revenues, of the waterworks utility now belonging to or which may hereafter belong to the Town, including all additions, extensions and betterments thereof at any time made, a fixed amount without regard to any fixed proportion, namely, an amount sufficient to pay the principal of and interest on the bonds herein authorized as they respectively become due and to create such surplus and reserve, if any, that may hereafter be pre- scribed by ordinance. The gross revenues from the said waterworks utility are hereby pledged to such payment and the bonds herein authorized shall constitute a charge or lien upon such revenues_ prior and superior to any other charges whatsoever,' excluding charges for maintenance and operation, except that the Town Council may hereafter provide for the issuance of additional water revenue t on a parity of lien with the bonds authorized herein under such terms and conditions as the Town Council shall hereafter provide, Section 9. The Town Council and corporate authorities of the Town of Port Orchard, hereby declare that in creating the said special fund and in fixing the amounts to be paid into it as set forth herein they have exercised due regard to the cost of operation and maintenance of the waterworks utility, and the Town of Port Orchard has not bound and obligated itself to set aside and pay into such special fund a greater amount or proportion of the revenues of the waterworks utility than in the judgment of the Town Council will be Y- , available over and above such costs of maintenance and operation and debt service requirements for said outstanding bonds, and that no portion of the revenues of the waterworks utility has been previously pledged for any other indebtedness, Section 1®o The Town of Port Orchard hereby binds itself irrevo cably not te mortgage, sell, lease, or in any manner encumber or dispose of the waterworks utility now belonging or which may hereafter belong to it, including all additions, betterments and extensions thereof at any time made, until all of the bonds herein authorized and hereafter issued with interest thereon shall have been fully paid; and the Town hereby covenants and agrees to maintain in good condition and to operate the waterworks utility and to establish, maintain and collect such rates as will produce gross revenues from the waterworks utility sufficient to permit payment into said special fund of the amounts required for the payment of the principal of and interest on the bonds herein authorized as they become due and the amounts that my be required to be paid into any reserve account that may be provided for in connection with the sale of said bonds, to pay all costs of maintenance and operation and taxes, and otherwise to meet the obligations of the Town as herein set forth and as may be set forth in any ordinance hereafter enacted pertaining to the issuance of said bonds® Section lla The Town of Port Orchard will, while any of the bonds herein authorized remain outstanding, keep proper books of accounts and records (separate and apart from other accounts and records) in which com- plots and correct entires will be made of all transactions relating to the waterworks utility and it will frnish the original purchaser of the bonds and any subsequent holder or holders thereof at the written request of such holder or holders complete operating and income statements of the waterworks utility in reasonable detail, covering any fiscal year, not more than thirty days after the close of such fiscal year, and it will grant any holder or holders of at least of the outstanding bonds herein authorized the right r k� at all reasonable times to inspect the system and all records, accounts and data of the Town relating thereto® Sectioan lk. The proceeds of the sale of the foregoing bonds shall be used for the sole purpose of making additions to and betterr•nts and extensions of the waterworks utility as herein authorized and of paying the cost and expenses connected therewith, and the Town of Port Orchard, through its proper officers and agents, shall proceed with the making of said improve* ments and the calling of bids therefor in the Banner provided by law. PISSED by the Town Council at a regular meeting thereof and APPROVED by the Mayor of the Town of Port Orchard, Washington, this 8th day of Aprih, 1957. AYO M