ORD 62-117 CONSTRUCTION OF EXTENSION OF WATER SERVICE ORDINANCE NO. 117
AN CRDINANCE providing for the construction and
installation of an extension of water distribution
service, providing for its subsequent operation,
maintenance and control, establishing its costs and
providing a mode of payment, providing terms, provisions,
covenants and obligations of the Town incident to said
payment, creating a special fund, providing for ~he sale
of warrants, declaring an emergency and authorizing an
emergency expenditure in connection therewith.
WHERFAS, the Town of Winslow has been and is operating a
municipally owned water system and in the judgment of its council
it is in the best interest of the public health, safety and welfare
that water service be extended at the earliest practicable tin~ so
as to reach and serve the area abutting on both sides of Franks' Avenue
from the intersection at Woods Street, West a distance of approximately
500 feet and both sides of Lovell Street from the intersection at Franks
Avenue North a distance of approximately 300 feet, all within the limits
of the Town of Winslow, and
WHEREAS, no general indebtedness is to be incurred by the
Town of Winslow in the acquisition, construction, installation, main-
tenance or operation of such extension, and
WHEREAS, it is intended that such extension, the reasonable
cost of which is estimated to be $2,000.00, shall be paid for by the
proceeds of a'sale of revenue warrants, which warrants in such principal
amount shall be a claim only against the special fund herein created.
E IT ORDAII~13 by the Town Council of the Town of Winslow
in regular session as follows:
SECTION l: There shall be constructed and installed at
the earliest practicable time, an extension of the Town of Winslow
water distribution line from the existing line at the intersection of
Franks Avenue and Woods Street West along Franks Avenue a distance of
approximately 500 feet, thence North along Lovell Street a distance of
approximately 300 feet, all in accordance with engineer's preliminary
drawings heretofore received.
SECTION 2: The ~ cost of doing all the foregoing, it
is estimated, will not be in excess of $2,000.00, which shall be produced
by the issuance of revenue warrants of the Town of Winslow as authorized
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 $2,000.00, which warrants shall bear interest
at the rate of four percent (4%) per annum payable annually after date,
to pay the cost of the construction of such construction project. Said war-
rants and interest thereon shall not constitute an indebtedness of the
Town of Winslow but shall be payable and paid solely out of and from a fixed
amount of the earnings and revenues from said system of water.
SECTION 4: That there be and is hereby created a special fund
of the Town to be known as '~inslow October 1st, 1962 Water Revenue Warrant
Redemption Fund", which fund is to be drawn upon for the sole purpose of
paying the principal of and interest on the water revenue warrants authorized
herein. From and after the date of issue of said warrants, and as long as
any of the same are outstanding and unpaid, the Town Treasurer shall set
aside and pay into said Warrant Redemption Fund out of the Water Revenue
Fund of the Town created by Ordinance No. 22, at least thirty days prior
to the respective dates on ~hich the interest or principal and interest of
said warrants shall become due, amounts sufficient to pay such principal
and interest.
SECTION 5: Said Warrant issue, not in excess of $2,000.00 shall
be dated October l, 1962, shall be in denomination of $250.00 each, shall
be numbered I to 8 inclusive, shall bear interest at the rate of 4% per
annum until paid, shall be callable on thirty days notice and mature within
5 years from date of issue.
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 amunt of revenues and special fund shall 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 theretofore
been committed by ordinance) and the money required hereby to be paid
therein shall not constitute an indebtedness of the Town of Winslox
within the meaning of the 5onstitution and the laws of the State of
Washington, and each warrant shall state on its face that it is
payable from said Special Warrant Redemption Fund of October 1st, 1962,
and shall name this ordinance which created such special fund by
reference to its n~mber.
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 amounts 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 p~ion 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 and maintain the extended portion
of the system as heretofore defined in sound financial condition.
~ECTION 6: It is further covenanted and ordained that the
Town Council, until all of said warrants and the interest thereon
shall have been fully paid, shall not reduce the rates required by it
for use of the extended portion of the system as heretofore defined,
or of the water system itself, so that the gross revenues shall be
insufficient to permit 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 Tov~n shall increase
its rates to such revenues in an annunt 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 water system
superior to the charges created by this ordinance and that any future
charge or special fund indebtedness which may be created by the Town
of Winslow made payable out of the revenues of the water system shall
constitute a charge and lien subject to the charge and lien created
by this ordinance.
SECTION 7: The To~n Council is authorized under RCW 35.39,030
to invest inactive funds by the purchase of its own utility revenue warrants
and the Town officials are hereby authorized and directed to invest $2,000.00
of presently inactive funds in the L. I. D. Guaranty Fund by the purchase of
$2,000.00 of October 1, 1962 Water Revenue ~arrants.
SECTION 8: The moneys derived from the sale of said
warrants shall be used solely for the purpose provided herein, and
the proper officials of the Town are hereby authorized and directed
to do everything necessary for the execution, sale and delivery of
said warrants and for the prompt construction and installation of said
extension to the water system of the Town out of the proceeds of the
sale thereof.
SECTION 9: This ordinance is declared to be one necessary
for the immediate preservation of the public peace, property, health
and safety of the people of the Town of Winslow, Washington. An
emergency is hereby declared to exist and this ordinance is hereby
declared to be in full force and effect from and after its passage,
approval snd publication as provided by law.
SECTION lO: If any section, sub-section, sentence, clause or phrase
of this ordinance is for any reason held to be invalid or unconstitutional,
such decision shall not affect the validity of the remaining portion of
this ordinance.
PAS~ED unanimously by the Council of the Town of Winslow,
Washington, and approved by its Mayor at a regular meeting held on
the 18th day of September, 1962.
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