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ORD 71-07 CITY WATER SYSTEMORDINANCE AN ORDINANCE of the City of Winslow, Washington, providing for the acquisition, construction and installation of certain additions and improvements to the water system of the city, declaring the estimated cost thereof, providing for the issuance of water revenue warrants of the city in the total principal sum of $22,000 to pay the same, providing the date, form, terms and maturities of said warrants, and creating a special fund for the payment of the principal and interest thereof. WHEREAS, the city now owns, maintains and operates a water system as created by Ordinance No. 12 of the city and as added to by subsequent improvements, which is in need of certain additions, improvements and extensions in order to provide the city, its inhabitants and people living in the vicinity thereof with an adequate supply of potable water; and WHEREAS, in order to pay part of the cost of such necessary additions and improvements to and extensions of such system it is deemed necessary that the city issue and sell its water revenue warrants in the principal amount of $22,000; NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Winslow, Washington, as follows: Section 1. The following plan and system of additions and improvements to and extensions of the water system of the city is hereby proposed, specified and adopted, to wit: A. The city shall acquire the following described property for the purposes of drilling a well, and installing a pump and connecting line: That portion of the Southwest quarter of the Northwest quarter of Section 27, Township 25 North, Range 2 East, W.M., described as follows: Beginning at the West quarter corner of said Section 27, the true point of beginning; thence along the West line of said Section 27, North 00°3'2'' West 169.39 feet; thence North 84°34'7'' East 226.13 feet; thence South 0~3'2'' East 194.27 feet; thence North 89°6' 53'' West 225.16 feet to the West quarter corner of said Section 27, the true point of beginning; Situate in Kitsap County, Washington. B. The city shall on the property described above and on property already owned by the city, drill, and develop a well, install a pump, pumphouse, and piping, together with all meters, fittings, electrical wiring, valves and control and chlorination equipment as required, for connection to the existing water distribution system and as a part of the overall plan for extension and expansion of the water distribution system. Section 2. The estimated cost of the construction and installation of the above described additions and improvements to the water system of the town is hereby declared to be, as near as may be, the sum of $22,000, which shall be paid from the sale of the water revenue warrants of the town hereinafter authorized. Section 3. For the purpose of providing the funds necessary to acquire property and construct and install the above described additions and improvements to the water system of the city, the city shall now issue its water revenue coupon warrants (hereinafter called the "Warrants") in the total prin- cipal sum of $22,000. - 2 - The Warrants shall be dated June 1, 1971, four of which shall be in the denomination of $500 each and the balance shall be in the denomination of $1,000 each, shall be numbered from 1 to 24, inclusive, shall bear interest at the rate of 5% per annum payable on the first day of December, 1971 and semiannually on the first days of June and December of each year thereafter and shall mature in order of their number as follows: Warrant Nos. Maturity Dates Amount 1 June 1, 1972 $ 500 2 June 1, 1973 500 3 June 1, 1974 500 4-23 June 1, 1974 20,000 24 June 1, 1975 500 Both principal and interest of said Warrants shall be payable in lawful money of the United States of America at the office of the City Treasurer in Winslow, Washington, solely out of the special Warrant Redemption Fund created by this ordinance. Any or all of said Warrants may be called for payment at par on thirty days notice. Notice of any such intended redemption shall be given by one publication thereof in the official town newspaper not more than forty nor less than thirty days prior to said redemption date and by mailing a like notice at the same time to the original purchaser of the Warrant at an address to be supplied by the purchaser. Interest on any Warrant or Warrants so called for redemption shall cease on such redemption date. Section 4. Said Warrants shall be in substantially the following form: - 3 - UNITED STATES OF A~RICA NO. $1,000 ($500) State of Washington City of Wins low WATER REVENUE WARRANT 1971 TO THE CITY TREASURER OF WINSLOW, WASHINGTON: On the first day of June, 19 , upon presentation, pay to bearer in lawful money of th"'e United States of America the sum of ONE THOUSAND DOLLARS (FIVE HUNDRED DOLLARS) together with interest thereon from date hereof until paid at the rate of 5% per annum payable on the first day of December, 1971 and semiannually on June and December of each year thereafter, as evidenced by and upon presentation and surrender of the attached interest coupons as they severally become due. This warrant is one of an issue of $22,000 par value of warrants, all of like date and tenor, except as to number, denomination and date of maturity, designated "City of Winslow Water Revenue Warrants, 1971." The warrants of this issue may be called for payment prior to maturity at par on thirty days notice as provided in Ordinance No. of the City, adopted , 1971. Both principal and interest of this warrant are payable solely out of the special fund known as the "Winslow 1971 Water Revenue Warrant Redemption Fund" created by Ordinance No. of the city. DATED at Winslow, Washington, this first day of June, 1971. CITY OF WINSLOW, WASHINGTON By ~ M ATTEST: City Clerk The interest coupons attached to said Warrants shall be in substantially the following form: - 4 - NO. $ On the first day of , 19 , the City of Winslow, Washington, will pay to bearer at the office of the City Treasurer in Winslow the sum shown hereon in lawful money of the United States of America from the special fund of said city known as the "Winslow 1971 Water Revenue Warrant Redemption Fund," said sum being the semiannual interest due that day on its Water Revenue Warrant dated June 1, 1971, and numbered . CITY OF WINSLOW, WASHINGTON Mayor ATTEST: City Clerk Section 5. Said Warrants shall be executed on behalf of the city by its Mayor and attested by the City Clerk, with the seal of the city impressed thereon, and the interest coupons attached thereto shall be executed with the facsimile signatures of said officials. Section 6. There shall be and is hereby created a special fund of the city to be known as the "Winslow 1971 Water Revenue Warrant Redemption Fund," (hereinafter called the 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 city treasurer shall set aside and pay into the Warrant Redemption Fund out of the Water Revenue Fund of the city created by Ordinance No. 22, adopted April 16, 1953, at least thirty days prior to the respective dates on which - 5 - the interest or principal and interest of said Warrants shall become due, amounts sufficient to pay such principal and interest. Said amounts so pledged are hereby declared to be a prior lien and charge upon the money in the Water Revenue Fund superior to all other charges of any kind or nature except the necessary cost of maintenance and operation of said water system and except the charges necessary to pay the principal of and interest on the outstanding Water Revenue Bonds of the city issued under dates of May 1, 1953, May 1, 1962, and May 1, 1967. Section 7. The corporate authorities of the City of Winslow hereby declare, in fixing the amounts to be paid into the Warrant Redemption Fund, that they have exercised due regard to the cost of maintenance and operation of said water system and the charges necessary for the payment of the principal and interest of the outstanding water revenue bonds and these Warrants of the city and that in their judgment they have not obligated the city to set aside and pay into the Warrant Redemption Fund a greater amount or proportion of the revenue of such water system than will be available over such cost of maintenance and operation and the charges necessary to pay the principal of and interest on such outstanding water revenue bonds of the city. Section 8. The City of Winslow covenants and agrees with the holder of each and every one of the Warrants herein that it will maintain said water system in good condition and repair, operate the same in an efficient manner and at a reasonable cost, and establish, maintain and collect rates and charges for water service that will provide sufficient revenue - 6 - to produce the gross revenue necessary to meet all the obligations of the city as herein recognized and set forth. Section 9. There is hereby created a special fund of the city known as the "Winslow Water System Construction Fund" (hereinafter called the "Construction Fund"). Immediately upon the sale of the Warrants, the proceeds thereof shall be paid into the Construction Fund. The money in such Construction Fund shall be used for the sole purpose of acquiring property, constructing and installing the additions and improvements to and extensions of the city water system authorized by this ordinance, and for paying all of the expenses incidental thereto. If, after the payment of all of such costs and expenses, any money shall remain in the Construction Fund, the same shall be transferred to the Warrant Redemption Fund. Section 10. The proper officials of the city 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 additions and improvements to the water system of the city out of the proceeds of the sale thereof. Section 11. The offers received by the city on May 17 , 1971, from Cederwa~l Pacitic Corporation Ruth R. Cederwall, President P. 0. Box 638 Bainbridge Island, Washington $5,000.00 Barbara H. Lainping P. O. Box 281 Wins 1 ow, Washington 15,000.00 City o f Wins 1 ow Winslow, Washington 2,000.00 - 7 - to purchase the Warrants on the terms provided for herein is hereby accepted and confirmed. PASSED by the Council of the City of Winslow, Washington, and approved by its Mayor at a regular meeting held on the 17th day of May , 1971. CITY OF WINSLOW, WASHINGTON AT TE S T: City Clerk - 8 - I, F. H. S~l~l , Clerk of the City of Winslow, Washington, DO HEREBY CERTIFY that the foregoing is a true and correct copy of Ordinance No. 71-7 of said city, duly adopted by its Council and approved by its Mayor at a regular meeting held on the lTth day of May , 1971. City Clerk