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1267 - Ordinance - Amending Ordinance 1264 Waterworks UtilityCITY OF PORT ORCHARD, WASHINGTON ORDINANCE NO. 126"1.— AN ORDINANCE relating to the Waterworks Utility of the City; amending section 2 of Ordinance No. 1264 with respect to the amount of proceeds of the "Water and Sewer Revenue Bonds, 1984" of the City to be deposited in the 1.984 Refunding Fund created by that ordinance; amending section 3 of Ordinance No. 1264 with respect to the beginning cash balance in the Refunding Fund. THE CITY COUNCIL OF THE CITY OF PORT ORCHARD DO ORDAIN, as follows: Section 1. Section 2 of Ordinance No. 1264 is amended to read as follows: Section 2. For the purpose of providing the funds with which to: (1) (a) pay the principal of and interest on the 1962 Bonds as the same shall become due until their final maturity on October 1, 1986; (b) pay the principal of and interest on the 1.963 Bonds as the same shall become due on their final maturity on June 1, 1984; (c) pay the principal of and interest on the 1973 Bonds as the same shall become due until their final maturity on December 1, 1994; (d) pay the principal of and interest on the 1977 Bonds as the same shall become due until their final maturity on December 1, 2017; and (2) provide a part of the funds to pay the costs of the Improvements; and (3) pay the cost and expense of issuing the Bonds; there shall be issued and sold the Bonds in the principal amount of $6,450,000. The Bonds shall be serial in form; shall be dated April 1, 1984; shall be in denominations of $5,000 each or any integral multiple thereof within a single maturity; shall be numbered separately and in the manner and with any additional designation as the Bond Registrar deems necessary for the purpose of identification; and shall bear interest payable on April 1, 1985, and semiannually thereafter on each succeeding October 1 and April 1, and mature on April 1 of each year in accordance with the following schedule: Interest Maturity Amounts _ Rates Years $900,000 6.25% 1985 275,000 6.50 1986 275,000 7.00 1987 275,000 7.50 1988 275,000 7.75 1989 275,000 8.00 1990 275,000 8.25 1991 300,000 8.50 1992 300,000 8.75 1993 300,000 9.00 1994 300,000 9.20 1995 300,000 9.40 1996 300,000 9.50 1997 300,000 9.60 1998 300,000 9.70 1999 300,000 9.75 2000 300,000 9.80 2001 300,000 9.85 2002 300,000 9.875 2003 300,000 9.875 2004 The fiscal agency or agencies of the State of Washington, serving as such at any given time material to this ordinance, is appointed as Bond Registrar. The Bonds shall be issued only in registered form as to both principal and interest on books or records maintained by the Bond Registrar (the "Bond Register"). Such Bond Register shall contain 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 nominee. Upon surrender thereof to the Bond Registrar, Bonds are Interchangeable for Bonds in any authorized denomination of an equal aggregate principal amount and of the same interest rate and maturity. Bonds may be transferred only if endorsed in the manner provided thereon and surrendered to the Bond Registrar. Such exchange or transfer shall be without cost to the owner or transferee. - 2 - Both principal of and interest on the Bonds shall be payable in lawful money of the United States of America solely out of the Bond Fund. Interest on the Bonds shall be paid by check or draft mailed to the registered owners or nominees at the addresses appearing on the Bond Register on the 15th day of the calendar month immediately preceding the interest payment date. Principal of the Bonds shall be payable upon presentation and surrender of the Bonds by the registered owners at either principal office of the Bond Registrar in Seattle, Washington, or New York, New York, at the option of such owners. The Bond Registrar shall keep, or cause to be kept, at its principal corporate trust office, sufficient books 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 authenticate and deliver Bonds transferred or exchanged in accordance with the provisions of such Bonds and this ordinance and to carry out all of the Bond Registrar's powers and duties under this ordinance. The Bond Registrar shall be responsible for its represen- tations contained in the Registrar's Certificate of Authentica- tion on the Bonds. The Bond Registrar may become the owner of 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 depository 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. The City reserves the right to redeem the Bonds maturing on or after April 1, 1995, prior to their stated maturity dates as a whole, or in part in inverse order of maturity (and by lot within a maturity in such manner as the Bond Registrar shall determine), on April 1, 1994, and on any interest payment date thereafter, at the redemption prices (expressed as percentages - 3 - of principal amount) set forth in the following table, together with accrued interest to the date of redemption: Redemption Dates Redemption Price April 1, 1994 and October 1, 1994 . . . . . 1.02% April 1, 1995 and October 1, 1995 . . . . . 101 April 1, 1996 and thereafter . . . . . . . 100 Whenever Bonds are redeemed in part within a maturity, portions of the principal amount of any Bond within such matur- ity may be redeemed, in amounts of $5,000 or any integral multiple of $5,000. If less than all of the principal amount of any Bond is redeemed, upon surrender of such Bond at the princi- pal 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 the total principal amount of the uncalled portion of such Bond in any of the denominations authorized by this ordinance. Notice of any intended redemption prior to maturity shall be given not less than 30 nor more than 60 days prior to the date fixed for redemption by first class mail, postage prepaid, to the registered owner of any Bond to be redeemed at the address appearing on the Bond Register. The requirements of this section shall be deemed to be complied with when notice is mailed as herein provided whether or not it is actually received by the owner of any Bond. The interest on the Bonds so called for redemption shall cease on the date fixed for redemption and such Bonds shall no longer be deemed to be outstanding, unless such Bond or Bonds so called are not redeemed upon presentation made pursuant to such call. In addition, such redemption notice shall be mailed within the same period, postage prepaid, to Moody's Investors Service, Inc., and Standard & Poor's Corpora- tion at their offices in New York, New York, or their succes- sors, and to Foster & Marshall/American Express Inc. and Terry - 4 - Thompson & Co. at their offices in Seattle, Washington, but such mailing to those New York and Seattle firms shall not be a condition precedent to the redemption of such Bonds. The City further reserves the right to purchase any of the Bonds or Future Parity Bonds on the open market at any time at a price not in excess of the next optional redemption price plus accrued interest to date of purchase. The Bonds shall not be a general obligation of the City, shall be payable solely out of the Bond Fund, and shall be a valid claim of the owner thereof only as against such Bond Fund and against the ULID Assessments and the Net Revenues of the Waterworks Utility of the City pledged herein for the payment of the Bonds. Immediately upon receipt of payment in full for the Bonds, the accrued interest received shall be deposited in the Princi- pal and Interest Account in the Bond Fund created by Section 4 of this ordinance, $325,314.92 of the principal proceeds shall be deposited in the 1984 Refunding Fund created by Section 3 of this ordinance, and the balance of the principal proceeds shall be deposited in the Construction Fund. In addition, $767,150 received by the City from the prepay- ment of assessments levied in ULID No. 1 shall be deposited in the Reserve Account of the Bond Fund. The following amounts from the following funds shall be deposited into the 1984 Refunding Fund: $25,187.15 from the "Sewer Revenue Bond Fund, 1962," $12,888.80 from the "Water Revenue Bond Fund, 1963," $41,297.54 from the "Water and Sewer Revenue Bond Fund, 1973" and $35,571.59 from the "Water and Sewer Revenue Bond Fund, 1977." Section 2. Section 3 of ordinance No. 1264 is amended to read as follows: - 5 - Section 3. There is created and established in the office of the Treasurer of the City a special fund to be known and designated as the "1984 Refunding Fund." The funds in the 1984 Refunding Fund shall immediately be used upon receipt thereof to discharge the obligations of the City under (1) Ordinance No. 690 authorizing the issuance of the 1962 Bonds by providing for the payment as hereinafter set forth in this section of the principal of and interest on such 1962 Bonds, (2) Ordinance No. 713 authorizing the issuance of the 1963 Bonds by providing for the payment as hereinafter set forth In this section of the principal of and interest on such 1963 Bonds, (3) Ordinance No. 909 authorizing the issuance of the 1973 Bonds by providing for the payment as hereinafter set forth in this section of the principal of and interest on such 1973 Bonds, and (4) Ordinance No. 1022 authorizing the issuance of the 1977 Bonds by providing for the payment as hereinafter set forth in this section of the principal of and interest on such 1977 Bonds. To the extent practicable, the City shall discharge such obligations by the purchase of Acquired Obligations bearing such interest and maturing as to principal and interest in such amounts and at such times as to provide for the payment of the principal of and interest on the 1962 Bonds as the same shall become due up to and including October 1, 1986, the 1963 Bonds as the same shall become due up to and including June 1, 1984, the 1973 Bonds as the same shall become due up to and including March 1, 1994, and the 1977 Bonds as the same shall become due up to and including December 1, 2017. The Acquired Obligations are more particularly described in Schedule A attached to the Refunding Trust Agreement. The Acquired Obligations and a beginning cash balance of $60.00 shall be deposited irrevocably with the Refunding - 6 - Trustee. Any amounts described in this section which are not provided for in full by the purchase and deposit of the Acquired Obligations shall be provided for by the irrevocable deposit of a portion of the proceeds of sale of the Bonds or other money of the City with the Refunding Trustee. All the money received as principal of or interest on the Acquired Obligations shall be held by the Refunding Trustee for the credit of the City and the 1984 Refunding Fund, shall be held In trust and shall be used for the sole purpose of paying the 1962 Bonds, the 1963 Bonds, the 1973 Bonds and the 1977 Bonds as aforesaid. Any money remaining in the 1984 Refunding Fund after the payment and retirement in full of the 1962 Bonds, the 1963 Bonds, the 1973 Bonds and the 1977 Bonds as aforesaid shall be transferred and paid into the Principal and Interest Account, unless no Bonds or Future Parity Bonds are :outstanding, in which event such money shall be transferred and paid into the Water and Sewer Utility Operating Fund of the City. All of the Acquired Obligations purchased as a part of the refunding plan are dedicated irrevocably to the purpose thereof set forth in this ordinance, and such investments or the earnings or the proceeds therefrom may be used for no other purpose, nor may any of such investments be liquidated prior to maturity, except that the City reserves the right to substitute other direct obliga- tions of the United States of America for any of the Acquired Obligations and to use any savings created thereby for any lawful City purpose if such substituted obligations shall be sufficient to pay the principal and interest on the Refunded Bonds and if there shall have been obtained at the expense of the City an opinion from Roberts & Shefelman, bond counsel to the City, to the City to the effect that the disposition and substitution or purchase of such securities will not, under the - 7 - statutes, rules and regulations then in force and applicable to the Bonds, cause the interest on the Bonds not to be exempt from Federal income taxation and that such disposition and substitu- tion or purchase is not inconsistent with the statutes and regulations applicable to the Bonds. All necessary and proper fees, compensation and expenses of the Refunding Trustee for the Bonds, all other costs incidental to the establishment of the escrow to accomplish the refunding of the 1962 Bonds, the 1963 Bonds, the 1973 Bonds and 1977 Bonds, and the costs relating to the issuance and delivery of the Bonds, including but not limited to bond printing, rating agency fees, the premium for MBIA insurance, escrow computation and certified public accountant verification fees, bond counsel's fees and other related expenses shall be paid out of the principal proceeds of the Bonds. The proper officers and agents of the City are directed to enter into a Refunding Trust Agreement with the Refunding Trustee setting forth the duties, obligations and responsibilities of the Refunding Trustee in connection with the redemption and retirement of the 1962 Bonds, the 1963 Bonds, the 1973 Bonds and the 1977 Bonds as provided herein and stating that such provisions and the payment of the fees, compensation and expenses of such Refunding Trustee are satisfactory to it. In order to carry out the purposes of this ordinance, the Mayor and Treasurer of the City are authorized and directed to execute the Refunding Trust Agreement and deliver it to the Refunding Trustee. Section 3. All actions of the City of Port Orchard, its officers or employees heretofore taken in conformance with this ordinance are hereby ratified and confirmed. - 8 - PASSED by the City Council at a regular open public meeting thereof and APPROVED by by the Mayor of the City of Port Orchard, Washington, this leay of �i//G7Z� 1984. ATTEST: APPROVED AS TO FORM: City Attorney 0547p - 9 - Mayor I, ROBERT G. LLOYD, City Clerk of the City of Port Orchard, Washington, certify that the attached copy of Ordinance No. /2-6z is a true and correct copy of the original ordinance passed on the 2�—A day of ����1`«y(�, 1984, as that ordinance appears on the Minute Book of thhee/ City. DATED this��tday of ����i`r`"C— 1984. 0547p - 10 - Parcel No. Name 5439 Lawrence, Hilda 5469 Lawrence, Hilda 5470 Lawrence, Hilda 3567 Noerenberg, R.W. 3572 Noerenberg, R.W. 3573 Noerenberg, R.W. 3574 Noerenberg, R.W. 5354 Dawson, Jack 3847 Gordon, Adele F. 2838 Deal, Gary 3568 Roos, Alexander V. 5550 Christian Life Center 5523 Christian Life Center 3895 Christian Life Center 3049 West Bay Center 11 West Bav Center 5143 Yacht Club 5144 Yacht Club 5145 Yacht Club 5146 Yacht Club 1615 Yacht Club 5551 Taylor, Charles A. 4185 Keefe, James K. 2851 Sidney Lodge 85 K of 6568 Floyd Haskins/City Exhibit A Recommended Usable PropertyO 100 97 100 0 0 100 0 81.6 0 100 0 0 0 100 0 100 0 0 0 0 100 0 0 0 Mortgage Services Inc. - Difference Final Assessed Value 791.25 815.16 791.23 0 791.25 791.25 791.25 3,498.24 965.46 791.25 791.25 791.25 791.25 6,329.98 791.25 22,946.18 791.25 791.25 791.25 791.25 7,912.48 791.25 791.25 4,107.98 791.25 Recommended Adjusted Assessment 791.25 791.25 791.25 0 0 791.25 0 2,855.00 0 791.25 0 0 0 6,329.98 0 22,946.18 0 0 0 0 7,912.48 0 0 0 $60,026.73 $43,999.89 $16,026.84