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ORD 56-47 INSTALLATION OF AN EXTENSION OF SANITARY SEWERAn ordinance providing for the construction and installa- tion of an extension of sanitary sewer service,providing for its subsequent operation, maintenance and control, establishing its costs and provia~ng a mode of payment, providing terms, provisions, covenants and obligations of the town incident to said payment, creating a special fund, providing for the sale of warrants, declaring an emergency and authorizing an emergency expenditure in connection therewith. WHEREAS the Town of Winslow has been and is operal~g a municipally owned sanitary sewer service and ~n the judg,,mnt of its Council it is in the best interest of the public health safety and welfare that sanitary sewer service be extended at the earliest practicable time in order to avoid endangerment of public health so as to reach and serve the Washington State Ferry Terminal Building and the Commercial Shlp Repair Company site, all within the limits of the Town of Winslow, and whereas no general indebt- edness is to be incurred by the Town of Winslow in the acquisition, construc- tion, installation, maintenance or operation of such extension, and whereas it is intended that such extension, the reasonable cost of wh/chis estimated to be $13,000.00 shall be paid for by a contribution of $4,000.00 from the State of Washington and by a contributinn of $4,000.00 by Commercial Ship Repair Company, Division of Pacific Car and Foundry Company, and the balance shall be paid for by the proceeds of a sale ~f warrants in an mount not in excess of $5,000.00 by the Town of Winslow, which warrants in such principal amount shall be a::claim~ only against the special fund herein created and shall be payable and paid only, and solely by and out of, and -1- from the .~fixed amount of the earnings and revenues of the system of sewerage; Be it ordained by the Town Council of the Town of Winslow in regular session, as follows: Section 1. There shall be constructed and installed at the earliest practicable time, an extension of the Town of Winslow sanitary sewer line from the nearest usable point in the old housing project in Winslow, Washington, east along Winslow Way to the intersection of Ferncliff Road and thence south through the Ferry Terminal property to a collecting basin and lift station at the rear of the ca~e near the ferry dock, all in accordance with engineers' preliminary drawings heretofore received. Section Z. The total cost of doing all the foregoing, it is estimated, Will not be in excess of $13, 000. 00, $4,000.00 of which shall be produced by contribution of the State of Washington, $4,000.00 of which shall be produced by contribution of Commercial Ship Repair Company, Division of Pacific Car and Foundry Company, and not more than $5,000.00 of which shall be produced by the issuance of warrants of the Town of Winslow as ~u~Aorized by this ordinance. Section 3. The Town of Winslow is hereby authorized to sell and to issue its warrants as hereinafter described, in the principal amount and not in excess of $5, 000.00, which warrants shall bear interest at the rate of fourpercent (4%) per annum payable annually after date, to pay the cost of the constructinn of such extension. Said warrants and interest thereon shall not constitute an indebtedness of the Town of V~inslow but shall be payable and paid solely out of and from a fixed amount of the earnings and revenues from said system of sewerage. The revenues and earnings from the extended portion of the system as heretofore provided shall be paid into a special warrant fund which is hereby c~eated and ordered to be established, which special warrant fund shall be named and described and known as the "Special Extension Fund of 1956." Section 4. There shall be paid into said special fund from the earnings and revenues from the extended portion of the system as described above and after deducting the costs of operation and maintep~ce of the extended portion of the system as described above, and after the payment of such other revenues from the general operation of the Town~s sanitary sewer system as have heretofore been committed, the balance of such earnings and revenues from the extended portion as described heretofore. Section 5. Said warrant issue, not in excess of $5,000.00, shall consist of twenty (20) warrants of the denomination of $250.00 each numbered from lto 20, both inclusive, shall run for a period of five (5) years from date of issue but may at any time be redeemed earlier from earnings deposited in said special fund. Said warrants shall be serial in form and bear interest at the rate of r~four~ percent (4~) per annum payable annually after date of issue of said warrants and maturing according to the following schedule: WARRANT SCHEDULE Warrant No. Denomination Maturity Total 1 $250.00 March 1, 1957 $250.00 2 $250. O0 March 1, 1957 $250. O0 3 $250. O0 March 1, 1958 $250. O0 4 $250. O0 March 1, 1958 $250. O0 5 $250. O0 March 1, 1958 $250. O0 6 $250. O0 March I, 1959 $250. O0 7 $250. O0 March 1, 1959 $250. O0 8 $250. O0 March 1, 1959 $250. O0 9 $250. O0 March 1, 1960 $250. O0 -3- Warrant No. Denomination Maturity :Total 10 $250.00 March 1, 1960 $250.00 11 $250.00 March 1, 1960 $250.00 12 $250. O0 March 1, 1960 $250. O0 13 $250. O0 March 1, 1961 $250. O0 14 $250. O0 March 1 , 1961 $250. O0 15 $250. O0 March 1, 1961 $250. O0 16 $250. O0 March 1, 1961 $250. O0 17 $250. O0 March 1, 1961 $250. O0 18 $250. O0 March 1, 1961 $250. O0 19 $250. O0 March 1, 1961 $250. O0 20 $250. O0 March 1, 1961 $250. O0 Said warrants shall be payable at the office of the Town of Winslow in Winslow, Kitsap County, Washington, and shall be signed for the Town of Winslow by the Mayor thereof and attested by the Clerk of the Town, and consistent with the provisions herein elsewhere made, the said warrants and the interest thereon shall be payable only out of the special fund herein created. Said warrants and the interest thereon thus issued against the fixed amount of revenues and special fund shah be a valid claim of the holder thereof only as against Said fixed amount of revenues and said special fund (after first deducting the cost of operation and maintenance of the extended portion of the system as heretofore provided and after deducting that part of revenues which may have heretofore been committed by ordinance), and the money required hereby to be paid therein shall not constitute an indebted- ness of the Town of Winslow within the meaning of the Constitution and the laws of the State of Washington, and each warrant shall state on its face that it is payable from said Special Extension Fund of 1956, and shall name this ordinance which created such special fund by reference to its number. -4- The Town Council does hereby state and certify that in creating such special fund and in setting aside and providing for the payment into such special fund of the arnoun~s necessary for the payment of the principal and interest of the warrants, that this Town Council has taken into consideration and has had due regard to the costs of operation and maintenance of the extended portion of this system as heretofore provided, and to all portions and parts of revenue previously pledged as a fund for the payment of bonds, warrants or other indebtedness, and the Town Council will maintain rates adequate to service such warrants ~m~ maintain the extended portion of the system as heretofore defined in sound financial cond~ion. Section 6. It is further covertanted and ordained that the Town Council, until all of said warrants and the interest thereon shall have been fully paid, shall not reduce t~ rates required by it for use of the extended portion of the system as heretofore defined, or of the sanitary sewer system itself, so that the gross revenues shall be insufficient to per- mit the making of payments into said special fund as hereinbefore required, and that if at any time such gross revenues shall not be sufficient to pay the costs of operation and maintenance and service such other obligations as to which the Town has heretofore become committed, and the charge upon revenues hereby created in favor of the warrants herein authorized, then the said Town shall increase its rates to such revenues in an amount as will be sufficient to provide for the payment of all such costs of operation and maintenance and for the servicing of the debt created hereby; and that in order to preserve the priority of this special fund, the Town of Winslow shall not create or permit to be created so long as any of said warrants shall be outstanding and unpaid, any indebtedness or charge whatsoever which shall be a charge against the revenues of the sanitary sewer system superior to the charges created by this ordinance, and that any future charge or special fund indeb tedhess which may be created by the Town of Winslow made payable out of the revenues of the sanitary sewer service, shall constitute a charge and lien subject to the charge and lien created by this ordinance. Sectlnu 7. Should the revenues from the extended por- tion of the sanitary sewer service aS heretofore defined be sufficient, the Town of Winslow may call any one or all of the warrants herein described prior to maturity. Section 8. The Treasurer of the Town of Winslow is hereby required and ordered to establish the special fund heretofore desig- nated, into which special fund the Town Council shall be caused to be paid all of the revenues from the extended portion of the sanitary sewer service as heretofore defined, until full payment of all the warrants and interest thereon created hereby. Section 9. The offer of Bainbridge Island Bank to purchase said warrants in accordance with its bid dated is hereby approved and accepted. Section 10. If any section, sub-section, sentence, clause or phrase of this ordinance is for any reason held to be invalid or unconstitu- tional, such decision shall not affect the validity of the remaining portion of this ordinance. Introduced February 21, 1956. Passed unanimously by the Tow'n~.Counc. il, March 6, 1956. -6-