HomeMy WebLinkAbout641 - Ordinance - Making Additions of the Existing Waterworks Utility of the TownAN ORDINANCE providing for the issuance and sale
of i,®OO par value of "Water Revenue Bonds, 1957,
Series for the purpose of obtaining the funds with
which to pay the cost of carrying out a portion of the
system or plan for making additions to and betterments
and extensions of the existing waterworks utility of the
Town, as adopted in Ordinance Nom 639; fixing the form,
date, maturities, interest rate, covenants and terms of
said bonds; and providing for the delivery and sale of
said bonds to Terry Thompson & Co,, of Seattle, Washington,
EREPS, the Town of Port Orchard, Washington, by Ordinance No&
639, passed on the 8th day of April, 1957, adopted a system or plan for
making additions to and betterments and extensions of the existing water-
works utility of the Town and authorized the issuance and sale of water
revenue bonds in the amount of not to exceed $95,000.00 par value to pro-
vide the fund with which to pay the cost of acquiring, constructing and
making said additions to and betterments and extensions of the waterworks
utility of the Town; and
iEREAS, the Town Council has determined to proceed with the carry-
ing out of a portion of said system or plan and in connection therewith deems
it advisable to issue and sell a portion of the total authorized issue of bonds
to obtain the funds required to pay the cost of the portion of said system or
plan to be presently carried out, NOW, THEREFORE,
BE IT ORDAINED By THE TOWN COUNCIL OF THE TOWN OF PORT ORCHARD,
WASHINGTON, as follows:
Section l® The following portion of the system or plan for making
additions to and betterments and extensions of the existing waterworks utility
of the Town, as adopted in Ordinance No, 639, is hereby ordered to be carried
out, to -wits
Cl) There shall be constructed and installed at Well
#6 a water storage reservoir and pump house®
2
(2) There shall be constructed and installed the follow-
ing water mains at the following approximate locationsa
(a) Approximately 600 lineal feet of 8 inch cast
iron water pipe from the well house north to the exist-
ing 6 inch line on State Highway #'4,
(b) Approximately 850 lineal feet of 6 inch cast
iron water pipe from Well #6 south to Third Street,
(c) Approximately 4,200 lineal feet of 10 inch cast
iron water pipe on Sidney Street from Kendall Street to
Tremont Street, to supplement the existing 4 inch water pipe,
and
(d) Approximately 800 lineal feet of 6 inch cast ron
water pipe on Tremont Street from Sidney Road west to Heward
Avenue®
Section 2. For the purpose of obtaining the funds with which to
pay the cost of carrying out the portion of the system or plan for making additions
to and betterments and extensions of existing waterworks utility of the Town of
Port Orchard as specified and adopted in Ordinance No. 639, as ordered in Section
1 hereof, there shall be issued and sold water revenue bonds of the Town in the
principal amount of $50,000.00. The bonds shall be designated as "Water Revenue
Bonds, 1957, Series 'A';" shall be in denominations of $1,000.00 each; shall be
numbered from 1 to 50, inclusive; shall be dated June 1, 1957; and shall bear
interest at the rate of 4 1/4% per annum, payable semiannually on June 1st and
December 1st of each year, interest to maturity to be evidenced by coupons to
be attached to the bonds with full obligation on the part of the Town to pay
interest at the same rate from and after the bond maturity dates until the
bonds with interest are paid in full. Both principal of and interest on the
bonds shall be payable solely out of the special fund created by Ordinance
No. 639, andknown as "Water Revenue Bond Fund, 1957," and the bonds shall be a
valid claim of the holder thereof only as against said special fund and the
fixed amount of the revenues of the waterworks utility pledged to such fund and
shall not be a general obligation of the Town of Port Orchard.
The bonds shall mature serially in accordance with the following
schedule, to vita
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Bond Numbers
Amounts
Maturities
I
to
5,
inclusive
$5,000
June
1,
1958
6
to
10,
"
$5,000
June
1,
1959
11
to
15,
$5,000
June
1,
1960
16
to
20,
"'
$5,000
June
1,
1961
21
to
25,
°'
$5,000
June
1,
1962
26
to
31,
$6,000
June
1,
1963
32
to
37,
m
$6,000
June
1,
1964
38
to
43,
°'
$6,000
June
1,
1965
44
to
50,
$7,000
June
1,
1966
Section 3, The Town of Port Orchard reserves the right to redeem
any or all of the outstanding bonds of said series out of revenues from the
waterworks utility of the Town, at par, plus accrued interest, on June 1, 1962,
or on any semiannual interest payment date thereafter, in inverse numerical
order, highest numbers first, and reserves the right to redeem the bonds as a
whole for refunding purposes at the following redemption prices if called at
the following times, plus accrued interest to date of redemption in each case,
to -wit:
On June 1, 162,
On December 1, 1962,
On June 1, 1963,
On December 1, 1963,
On June, 1, 1964,
On December 1, 1964,
On June 1, 1965,
On December 1, 1965,
at $105.00 per each $100 par value thereof
at $104.50 per each $100 par value thereof
at $104.00 per each $100 par value thereof
at $103.50 per each $100 par value thereof
at $103.00 per each $100 par value thereof
at $102.50 per each $100 par value thereof
at $102.00 per each $100 par value thereof
at $101.50 per each $100 par value thereof
Notice of any call for redemption of said bonds prior,to their
stated maturity dates shall be published once in the official newspaper of
Kitsap County, Washington, not less than thirty nor more than forty-five
days prior to the date of redemption. Notice of such call for redemption
shall also be mailed to Terry Thompson & Co®, 901 Northern Life Tower, Seattle,
Washington, or its successors, within tie same period. Interest on any bonds
so called for redemption shall cease on the date fixed for such redemption.
Section 4, The °°Water Revenue Bond Fund, 1957,0Q created and estab—
lished by Ordinance No. 639 is hereby divided into two accounts, namely, a
"Principal and Interest Account °' and a "Reserve Account." So long as bonds
are outstanding against such fund the Town Treasurer of the Town of Port
Orchard shall set aside and pay into such fund out of the gross revenues of
the waterworks :utility of the Town, including all additions, extensions and
betterments thereof at any time made, a fixed amount without regard to any
fixed proportion, as follows:
(a) Into the "Principal and Interest Account," monthly.,
beginning on July 1, 1957, one -twelfth of the next ensuing
twelve months w requirements for both principal and interest on
said bonds; and
(b) Into the "Reserve Account," monthly, -beginning on
July 1, 1957, the sum of at least $150.00 until a total
reserve of .,$9,0+00*00 has been accumulated therein, which
total reserve amount shall be accumulated by no later than
June 1, 1962.
The "Reserve Account" may be accumulated from any other moneys
which the Town of Port Orchard may have available for such purpose in addi-
tion to using said revenues therefore The "Reserve Account" shall be main -
tamed in such total required reserve amount, except for withdrawals there-
from as authorized herein, at all times so long as any "dater Revenue Bonds,
1957," are outstanding, provided, that when the total amount in the special
fund shall equal the total amount of principal, and interest for all outstanding
bonds of said issue to the last maturity thereof no further payment need be
made into such special fund.
In the event that there shall be a deficiency in the "Principal
and Interest Account" in such special fund to meet maturing installments of
either principal or interest, as the case may be, such deficiency shall be
made up from the "Reserve Account" by the withdrawal of cash therefrom for
that purpose* Any deficiency created in the "Reserve Account" by. reason
of any such withdrawal shall then be made up from the moneys from the revenues
of the waterworks utility first available after making necessary provision
for the required payments into the "Principal and Interest Account," Moneys
in the "Reserve Account" shall otherwise be held intact and may be applied
against the last outstanding bonds of this issue.
All money in the "Reserve Account" above provided for may be kept
on deposit in the official bank depository of the Town of Port Orchard or in
any national bank or may be invested in United States Government Obligations
maturing not later than May 1, 1972. Interest earned on any such investment
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or on such bank account shall be deposited in and become a part of the "Reserve
Account" until there shall be $9,000.00 therein, after which such interest
shall be deposited in the Principal and Interest Account."
section 55. The Town of Port Orchard, Washington, shall establish,
maintain and collect such rates and charges for water, as long as any "Water
Revenue Bonds, 1957," are outstanding, as will make available for the payment
of the principal of and interest on, as the same shall accrue, the bonds of
said issue., and any bonds hereafter issued on a parity with the bonds of said
issue in accordance with Section 7 hereof, at any time outstanding, an amount
which shall, after deducting normal operation and maintenance costs from the
gross revenues of the waterworks utility, be equal to at least 1.5 times the
average annual principal and interest requirements up to andincluding the
final maturity dates of all of said "Water Revenue Bonds, 1957," at any time
outstanding.
Section 6. The "Water Revenue Bonds, 1957, Series tA'," to be pre—
sently issued shall be in' substantially the following form:
No.
UNITED STATES OF AMERICA
STATE OF WASHINGTON
COUNTY OF KITSAP
TOWN OF PORT ORCHARD
WATER REVENUE BOND, 1957, SERIES "A"
41/4%
KNOW ALL MEN BY THESE PRESENTS that the Town of
Port Orchard, Kitsap County, State of Washington, for
value received, hereby promises to pay to the bearer
on the 1ST DA" OF JUNE, 19 , the principal sum of
ONE THOUSAND DOLLARS
together with interest thereon at the rate of FOUR AND
ONE -QUARTER PER CENT (4 1/4.P,,/) per annum, payable semi-
annually on the 1st days of June and December of each
year, upon the presentation and surrender of the attached
interest coupons as they severally mature up to the bond
maturity date and with full obligation on the part of the
Town to pay interest at the same rate from and after the
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$1, 000.00
bond maturity date until this bond with interest is paid in
full. Both principal and interest are payable in lawful
money of the United States of America at the office of the
Town Treasurer of Port Orchard, Washington, solely out of
the special fund created by Ordinance No. 639 and known as
"Water Revenue Bond Fund, 1957," into which -fund the Town of
Port Orchard hereby irrevocably binds itself to pay certain
fixed amounts out of the gross revenues of the waterworks
utility now belonging to cx'which may hereafter belong to the
Town, including all additions, replacements, extensions and
betterments now or at any time hereafter made or constructed,
without regard to any fixed proportion, namely, an amount
sufficient to pay the principal of and interest on this series
of bonds as they respectively become due and to create a
reserve in the total sum of $9,000.00, all at the times and
in the manner set forth in Ordinance No, 639 and Ordi nance
No. 641.
This bond is one of a total authorized issue of $95,000.00
par value of "Water Revenue Bonds, 1957," none of which have
heretofore been issued. The bonds of this series are designated
Series "A", are in the total principal amount of $50,000.00 par
value, are all of like date, tenor and effect, except as to
maturities, all payable from the said "Water Revenue Bond Fund,
1957," of the Town of Port Orchard, Washington, and all issued
by the Town under and pursuant to the laws of the State of
Washington and Ordinance No. 639 and Ordinance No. 641 of the
Town of Port Orchard, for the purpose of obtaining the funds
with which to pay the cost of carrying out a portion of the
system or plan for making additions to and betterments and
extensions of existing waterworks utility of the Town. Refer-
ence is made to said Ordinances as more fully describing the
covenants with and rights of holders of bonds of this issue.
The Town of Port Orchard has reserved the right to redeem
any or all of the outstanding, bonds of this series out of
revenues from the waterworks utility of the Town, at par, plus
accrued interest, on June 1, 1962, or on any semiannual interest
payment date thereafter, in inverse numerical order, highest
numbers first, and has reserved the right to redeem and bonds
as a whole for refunding purposes at the following redemption
prices if called at the following times, plus accrued interest
to date of redemption in each case, to -wits
On June
1,
1962,
at
$105.00
per
each
$100
par value
thereof
On
December
1,
1962,
at
$104.50
per
each
$100
par value
thereof
On June
1,
1963,
at
$104.0
per
each
$100
par value
thereof
On
December
1,
1963,
at
$103.50
per
each
$100
par value
thereof
On June
1,
1964,
at
$103.00
per
each
$100
par value
thereof
On
December
1,
1964,
at
$102.50
per
each
$100
par value
thereof
On June
1,
1965,
at
$102.00
per
each
$100
par value
thereof
On
December
19
1965,
at
$101.50
per
each
$100
par value
thereof
Notice of any call for redemption of said bonds prior to
their stated maturity dates shall be published once in the
official newspaper of Kitsap County, Washington, not less than
thirty nor more than forty-five days prior to the date of redemp-
tion. Notice of such call for redemption shall also be mailed to
Terry Thompson & Co., 901 Northern Life Tower, Seattle, Washington,
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or its successors, within the same period. Interest on any
bonds so called for redemption shall cease on the date fixed
for such redemption.
The bonds of the total authorized issue constitute a charge
or lien upon the gross revenues of the waterworks utility prior
and superior to any other charges whatsoever, excluding charges
for maintenance and operation, except that the charge or lien
upon such gross revenues for the total authorized issue of bonds
shall be on a parity with the charge or lien upon such gross
revenues for any water revenue bonds hereafter issued on a parity
with the bonds of the total authorized issue in accordance with
the provisions of Section 7 of Ordinance Noe 541 0
The Town of Port Orchard hereby binds itself irrevocably
not to 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 `°Water Revenue
Bonds, 1957," at any time outstanding 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.
meet the obligationsof the Town as herein set forth and as set
forth in Ordinance Nom 639 and Ordinance No, 641.
It is hereby certified and declared that the bonds of this
series are issued pursuant to and in strict compliance with
the Constitution and laws of the State of Washington and the
ordinances of the Town of Port Orchard, 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
as required by law.
IN WITNESS WHEREOF, the Town of Port Orchard, Washington,
has caused this bond to be signed by its Mayor and attested
by its Clerk and its corporate seal to be hereto affixed. and
the interest coupons attached to be signed with the facsimile
signatures of said officials this 1st day of June, 1957.
THE TOWN OF PORT ORCHARD, WASHINGTON
BY
ATTEST: MAYOR
CLERK
The interest coupons attached to the bonds shall be in substantially
the following form:
On the 1st day of (June)(December), 19 , THE TOWN
OF PORT ORCHARD, WASHINGTON, upon presentation and surrender
of this coupon will pay to bearer at the office of the Town
Treasurer the sum of TWENTY-ONE AND 25100 •DOLLARS ($21.25)
in lawful money of the United States of America from the
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the special fund of the Town known as the "Water Revenue
Bond Fund, 1957," said sum being six months t interest then
due on its "Water Revenue Bond, 1957, Series 'At," dated
June 1, 1957, and numbered __ ,O
Coupon No.,______
$21_,25
THE TOWN OF PORT ORCHARD, WASHINGTON
BY
MAYOR
ATTEST:
CLERK
The bonds shall be printed on lithographed forms, shall be signed
by the Mayor and attested by the Clerk and shall have -the seal of the Town
of Port Orchard affixed thereto and the coupons shall bear the facsimile
signatures of the Mayor and the Clerk.
Section 7® The Town of Port Orchard reserves the right to issue
additional and/or refunding water revenue bonds which shall constitute a
lien or charge upon the gross revenues of the waterworks utility of the Town
on a parity with the total authorized issue of "Water Revenue Bonds, 1957,"
provided, the following conditions shall be met and complied with at the
time of the issuance of such additional and/orrefunding bondsg
(a) All payments then required by this Ordinance and
any ordinance hereafter enacted pertaining to any series
of "Water Revenue Bonds, 1957," shall have been made into
the "Water Revenue Bond Fund, 1957"; and
(b) The revenues of the waterworks utility, plus the
additional revenues reasonably anticipated to be received
from the proposed improvement in connection with which such
additional water revenue bonds are to be issued, shall be and
be deemed sufficient after the payment of normal operation and
maintenance costs to equal at least 1.5 times the average annual
principal and interest requirements of all then outstanding
water revenue bonds, including the "Water Revenue Bonds, 1957,"
and of the additional and/or refunding water revenue bonds -pro—
posed to be so issued® Such determination of the sufficiency
of the revenues shall be made and certified to by an independent
professional registered engineer experienced in municipal
utilities and licensed to practice in the State of Washington;
and
(c) The Resolution authorizing the issuance of such addi—
tional bonds shall., provide that an amount equal to the average
annual debt service of the additional bonds proposed to be
issued shall be accumulated as a reserve in the bond redemption
fund created for such additional bonds, or in a separate reserve
fund, said amount to be accumulated by monthly deposits
commencing not later than one month after the date of
the issuance of the bonds and to be accumulated within
five years after the date of issuance, provided, however,
that in the case of refunding bonds, the resolution author-
izing the issuance of such refunding bonds shall provide
that the moneys in the "Reserve Account" for the bonds to
be refunded shall be transferred to the "Reserve. Account"
or separate reserve fund for the refunding bonds, or that
the moneys in the "Reserve Account" for the bonds to be re-
funded shall be used to redeem such bonds, in which event
an amount equal to the average annual debt service for the
refunding bonds proposed to be issued shall be accumulated
as a reserve in the same manner and within the same time
as set forth herein for additiaRl revenue bonds®
Section 8. Terry Thompson & Co®, Seattle, Washington, heretofore
offered to purchase the "Water Revenue Bonds, 1957, Series 'As," at a price
of $97®5O for each $100®00 par value thereof, plus accrued interest from the
date of issuance to the date of delivery of the bonds, the purchaser to
furnish the printed bonds, together with the unqualified approving legal
opinion of Messrs, Weter, Roberts & Shefelman, municipal bond counsel of
Seattle, Washington, without cost to the Town. The Town Council is of the
opinion that no better price can be obtained for the bonds and it is in the
best interests of the Town to accept said offer and said offer is hereby
accepted® The bonds shall, therefore, immediately upon their execution, be
delivered to Terry Thompson & Co® of Seattle, Washington, upon said purchaser's
paying for the same in accordance with its offer® The principal amounts
received from the sale of the bonds shall be deposited in -the "Water Con-
struction Fund" of the Town and the accrued interest received shall be de-
posited in the "Water Revenue Bond Fund, 1957•"
PASSED by the Town Council at a regular meeting thereof and APPROVED
by the Mayor of the Town of Port Orchard, Wash ngton, this
1957® P
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dayof f_,
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