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ORD 72-12 ADDITIONS AND IMPROVEMENTS TO WATER SYSTEMORDINANCE NO. 72 - 12 An ORDINANCE of the City of Winslow, Washington providing for tlxe acquisition, construction and installation of certain additions and improvements to the water system of the City; declaring the estimated cost ti~ereof; providing for the issuance of water revenue bonds in the total principal sum of $180,000 to pay part of the cost of improvements autl~orized by this ordinance and to redeem and retire tlI~e outstanding water revenue warrants of the City dated June 1, 1971, fixing the date, form, terms and maturities of said revenue uonds to be issued; providing that said bonds De issued on a parity witix ti~e water revenue bonds of 'tl~ City issued under date of May 1, 1953, 14ay I, 1962 and May 1, 1967; providing and adopting certain covenants safeguarding the payment of the princi[-,~ai and interest on said parity bonds7 reserving the right of the City to issue additional water revenue bonds on a parity with said bonds; creating a special fun~ for the payment of the principal and interest of suclx bonds; and confirming tl~e sale of said bonds to William P. Harper & Son & Company. Wx~LRLAS, tl~e City now owns, maintains and operates a water system!': as created by Ordinance i~o. 12 of ttxe City, wi~ich is in ~=eu <~f certain additions, improvements and extensions in order to provide tl~e City, its inhabitants, and people living in the vicinity thereof witl~ axx adequate supply of potable water; and ~.tHLFJSAS, by Resolution No. 71-7 adopted May 17, i371, ti~e City auti~orized the acquisition, construction and installation of certain auditions and betterments to said water supply and ,.~istribution system, and further provided that the cost of carrying out such plan of auditions and betterments should be paid out of the broceeds of sale of water revenue warrants of the sum of $22,000.00; W~iEIrEAS, it is Geereed necessary and advisable that said v~ater revenue warrants dated June 1, 1971, be called for payment and retired and tlxat funds necessary to redeem tl~e same be provided out of the proceeds of tixe sale of the bonds autixorized herein; and %.JkiEREAS, tile City now has outstanding certain of the 1953, 196~ and 1967 bonds; and WktEREAS, the City has heretofore provided in the revenue b~na ordinances (particularly Section 8 of Ordinance No. 22) that a~Gitional water revenue bonds of the City could be issued on a parity w~_th tl~e outstanding 1953, 1962 and 1967 revenue bonds if certain conoitions were n~et~ and W}IEREAS, it is to the best interest of the City and its i~xi~abitants ti~at the water revenue bonds to be issued under this ordinance De issued on a parity with the outstanding 1953, 1962 and 1'j67 water revenue bonds of tlxe City, and it appears to the Council ti~at the conditions required in Section 8 of Ordinance No. 22 (~eing ti~e original parity provisions) have been, or at the time of issuance of the bonds provided to be issued hereunder will be met, and that saio $180,000 of water revenue bonds may now be i-~;sueo on a parity ~.~ith the 1953, 1962 and 1967 water revenue bonds; a~'~ WIiEt~EAS, to pay tl~e cost of suci~ additions and betterments, a~u to redeem and retire such outstanding water revenue warrants, it is deemed necessary that the City issue and sell its water revenue D~:~nds in a single issue in the principal amount of $180,000; and WHEREAS, tl~e City has accepted an offer from William P. }iarper & Son & Company, Seattle, Washington, an investment bdnking corporation of Seattle, to purchase the $180,000 principal amount of water revenue bonds, at the interest rates and under t~e terms an~ conditions set fortl~ herein; ~40~, ThLREFORE, BE IT ORDAINLD BY Tile COU~CIL OF T~E CITY OF WINSLOW, ~TASHINGTON, as follows: -2- Section 1. As used in this ordinance the following words shall have the following meanings: a. The word "City'~ shall mean the City of Winslow, Wdshington, a municipal corporation duly organized and existing under t-,~e laws of tile State of ~shington, as a non charter code city. D. ~i~he word "Council" shall mean the duly elected q~alified and acting city council of the city of ~I~inslow. c. Ti~e wor~ "System" shall mean the existing water supply a~o distribution system of the City as the same may be added to and DettereO out of the proceeOs of the sale of the bonds, and as the same n~ay be later adde~ to ano bettered for as long as any of such bonds or a~xy parity Donds are outstanding, and sl~all include any sewer system of tl~e City, if tlxe same is ever combined with and made a part o!~ the ~ater supply and distribution system of the City by the Council. ~. Tile word "bonds" shall mean the $180,000 of ~onos issuec~ pursuant to and for tile purposes provided in this c, rdinance. e. The words "1953 bonds" slyall mean the outstanding DonOs of the City issued under date of May 1, 1953. f. Tile words "1962 bonds" shall mean the outstanding bonds of the City issueo under day of 10Iay 1, 1962. g. Tile words "1967" bonds" shall mean the outstanding Z, onds of the City issued under date of i~4ay 1, 1967. h. The woros "Parity Bonds" shall mean any and all v~',~ter revenue bonOs issued after date of issuance of the Bonds and on ~. t~arity tnerewittl. -3- i. The words "Bond Redemption Fund" shall mean the "~l,Jinslow 1972 ~'Jater Revenue Bond Redemption Fund" created herein for the purpose of paying and securing the payment of the principal of and interest on the Bonds. j. The words "Reserve Account" shall mean the account of that name hereinafter created in the Bond Redemption Fund to secure the payment of the principal of and interest on a~l outstanding Bonds of this issue. k. The words "Water Revenue Fund" shall mean the f~nd of that name of the City heretofore created into which all of the 9ross earnings and revenue of the System will be paid. 1. The words "Gross Earnings and Revenue" shall mean all of the earnings and revenue includin9 penalties and interest received by the City from the operation of its System. m. The words "balloon maturity year" shall mean the year 1978. Section 2. The plan and system of additions and improvements to and extensions of the water supply System of the City as set forth in Exhibit A attached hereto and made part hereof by this reference is hereby proposed, specified and adopted. A. The foregoing water improvement:~ shall be constructed complete with all hydrants, valves, fittings and appurtenances and shall be connected to the existing water system of the City. B. The City shall acquire all property, both real and personal, or any interest therein, equipment, rights of way and easements to carry out said water system improvements which are all as more specifically described in maps and plans prepared by -4- consulting engineer employed by the City and now on file i~ tile office of the City Clerk as more specifically set forth in Resolution 72-5 of the City adopted June 19, 1972. It is hereby further provided that such plans shall be subject to such additions or changes as to details or other changes not affecting the main general plan or plans or the service to be rendered thereby, as may be authorized by the City Council either prior to or during the actual course of construction. Section 4. The City Council hereby finds and determines as required by Section 8 of Ordinance No. 22 as follows: First: That the bonds will be issued for the purpose of acquiring, constructing and installing additions and improvements t~,.:~ and extensions of the water system. Second: That at the time of the adoption of this ordinance and at the time of the issuance and delivery of tl~e bonds ti'~ere is not nor ~.~ill there be any deficiency in the Bond Redemption Account or Reserve Account created by Ordinance Nos. 22, 115 and 67-5 of ti~e City. Tl~ird: That at the ti~.ne of the issuance of the bonds the City shall have on file a certificate from an independent licensed professional engineer experienced in the design, construction a~d operation of r~unicipal utilities sho~,~ing his estimate of the net e~rnings to be received by the system as a result of the additions a~d improvements thereto and extensions thereof to be acquired, constructed or installed from the proceeds of the s~:~le of suc}~ bonds: st~owing tha't such earnings will equal at least I. 5 times the greatest amount required to be paid in any calendar year thereafter (exclusive of any balloon maturity year) into t~e Bond Redemption Fund and Reserve Account for the principal -5- az~d interest on any revenue bonds then outstanding, on such additonal revenue bonds being issue, and on any Parity Bonds. Section 5. That for the purpose of providing the funds necessary to construct and install the above-described additions and ir!~provements and extensions to the water supply and distribution sb~stem of the City and retire the water revenue warrants dated June 1, 1971, on the first date on which said revenue warrants ~ay be called for redemption, the City shall now issue its water revenue Bonds in the total principal sum of $180,000. Said Bonds shall be dated August 1, 1972, shall be in the Genomination of $5,000 each, shall be numbered from 1 to 36, i~clusive, and shall mature and bear interest payable semiannually on the first days of August and February of each year co~nencing February 1, 1973, in order of their number as follows: Bond Nos. Z4aturity Dates ~nount Interest i 1979 $ 5,000 6.00% 2 1980 5,000 6.00% 3 1981 5,000 6.00% 4 1982 5,000 6.00% 5 1983 5,000 6.00% 6 1984 5,000 6.00% 7 1985 5,000 6.00% 8 1986 5,000 6.00% 9 1987 5,000 6.30% 10 198~ 5,000 6.30% 11 1989 5,000 6.30% 12 1990 5,000 6.30% 13 1991 5,000 6.30% 14 1992 5,000 6.30% 15 1993 5,000 6.30% 16-17 1994 10,000 6.30% 18-19 1995 10,000 6.30% 20-21 1996 10,000 6.50% 22-23 1997 10,000 6.50% 24-26 1998 15,000 6.50% 27-29 1999 15,000 6.50% 30-32 2000 15,000 6.50% 33-36 2001 20,000 6.50% -6- Both principal and interest of said Bonds shall be payable in lawful money of the United States of America at the office of ti~e City Treasurer in Winslow, Washington, solely out of the special Bona Redemption Fund created by this ordinance. The City hereby reserves the right to redeem Bonds numbered 1-19 in inverse numerical order on the following iraterest payment dates and at the following prices expressed as a percentage of the principal amount, plus accrued interest to date of redemption: On or after August 1, 1982, at 102-1/2% On or after August 1, 1983, at 102% On or after August 1, 1984, at 101-1/2% On or after August 1, 1985, at 101% On or after August 1, 1986, at 100-1/2% On or after August 1, 1987, or any interest payment date thereafter at 100%. In addition the City has reserved the right to redeem the Bonds numbered 20-36 in inverse numerical order on any interest payment date or on or after August 1, 1973, at par plus accrued interest. Notice of any such intended redemption shall be given b~.~ one publication in the official City newspaper not more than 40 nor less than 30 days prior to said redemption date and by mailing a like notice at the same tirade to William P. Harper & Son & Company, at its ~lace of business in Seattle, Washington, or its successor in business, if any, at its main place of business. Interest on any Bonds so called for redemption shall cease on such reden~ption date unless the same are not paid in full u~on presentation made pursuant to such call. Section 6. There is hereby created a special fund of tile City known as the "~I~inslow 1972 Water System Construction -7- Fund" (herinafter called the "Construction Fund"). Immediately u?on tixe sale of the Bonds authorized herein, the proceeds thereof (except for the proceeds paid into the "Winslo~ 1971 Water Revenue Warrant Redemption Fund" created by Ordinance No. 71-7 as is more fully stated hereinafter) shall be paid into the Construction Fund. The momey in such Construction Fund shall be used for the sole purpose of acquiring, constructing and installing t~e aoditions and improvements to and extensions of the City ~.-~ter system authorized by this ordinance, and for paying all of t:~e expenses incidental thereto. If, after the payment of all of snch costs and expenses, any xnoney shall remain in the Construction Fund, the same shall be transferred to the Bond Redemption Fund. Section 7. Out of ti~e proceeds of the sale of the Bonds t:~e City oOiigates and binds itself to deposit in the "Winslow i~71 Water Revenue iJarrant Redemption Fund" a sm~ sufficient, together with tixe ~'~oneys on hand at that time in said fund, to pay all costs of redeeming the outstanding 1971 warrants, including principal a~d interest. All outstanding 1971 water revenue coupon warrants s~all i~e redeen~ed not later than Nover,~er 1, 1972. ~4oneys remaining i;~ t?~e "%~'inslovj 1971 Water Revenue Warrant Redemption Fund" following s~.lch redexnption, including any moneys deposited therein out of ti~e proceeds of the sale of the Bonds, si~all be transferred to and deposited in the Bond Redemption Fund. Section 8. There has heretofore been created by Ordinance No. 22 of the City a special fund of tlxe City known a::; the "~.7ater Revenue Fund". All of the gross earnings and revenue o.f the System of the City shall be pc-~id into sucl~ fund as collected, a~d the moneys in such fund shall be kept segregated from any and all other i~oneys of the City. -8- All costs of maintaining and operating the system, all costs o f additions, betterments, improvements and repairs to, and replacements and extensions of the System (except when the same are f'[nanceG by the issuance of bonds or coupon warrants), all payments requuired to be made into the Bond Redemption Fund created for the bonds issued in 1953, 1962 and 1967, the Bond Redemption Fund created by this ordinance, and the reserve accounts for all bond redemption f;~nds, all payments which may be required by subsequent ordinances of t~e City to be made into any otl~er bond redemption fund and reserve account created for the purpose of paying and securing the payment of the principal and interest on any subsequently issued water revenue bonds of the City and all other legal and proper expenses of the System and charges against the Gross Earnings and Revenue tl~ereof shall be paid out of the Water Revenue Fund. Section 9. That there be and is hereby created in the office of the City Treasurer a special fund of the City to be known as "winslow 1972 Water Revenue Bond Redemption Fund", which fund i~ to be drawn upon for the sole purpose of paying the principal and interest on the bonds authorized herein as the same shall become ~ue. The City hereby obligates and binds itself to set aside and pay into said Bond Redemption Fund, out of the money in said v.Jater Revenue Fund and other available funds, certain fixed amounts necessary to pay the principal and interest on the Bonds authorized herein as the same respectively become due and payable. Said payments shall be made into said Bond Redemption Fund on or before the 20th day of each month in the amounts hereinafter speci f ied: -9- A. Beginning with August 1, 1972, and continuing as long as any of the bonds authorized herein are outstanding and unpaid, an amount equal to at least one-sixth of the interest to become due and payable at the end of the next ensuing six-months period on all of said Bonds then outstanding. B. Beginning with August 1, 1978, and continuing as long as any of the bonds authorized herein are outstanding and unpaid, an amount equal to at least one-t~.~elfth of the principal of said bonds to become due and payable on the next principal payment date. When there is sufficient money in the Bond Redemption Fund and the Reserve Account hereinafter created to pay the principal and interest to maturity of all the outstanding Bonds of the issue authorized herein, then no further payments need be made into said Bond Redemption Fund. Section 10. A Reserve Account is hereby created in said Bond Redemption Fund, and the City hereby agrees that it will set aside and pay into said Reserve Account, out of the moneys in said Water Revenue Fund and out of any other moneys which it may now or later have on hand available for such purpose, a sum equal to tixe maximum debt service requirement on the Bonds and any Parity Bonds required to be paid in any single year ~,l~ich sum is to be paid into said Reserve Account in equal annual payments commencing ~'~ugust i, 1972, so that the full sum shall be paid into said t<eserve Account by August 1, 1977. All money in the Reserve Account above provided for n~.ay be kept on det~osit in the official bank depositary of the City of ~.~inslow or in any national bank or may be invested in bi~ited States Governr~ent obligation maturing not later than ~r~dgUSt 1, 2001, and in no event later than the last maturity -10- of any outstanding Bonds that are payable out of the Bond Redemption Fund. Interest on any such investment or on such bank account shall be deposited in and become a part of the Reserve Account until the required reserve amount shall have been accumulated therein as aforesaid, after which such interest shall be depositeG in the Bond Redemption Fund. The City further covenants and agrees, when said r..-.~quired amounts have been paid into the Reserve Account, that it will at all times maintain those amounts therein until there is a sdfficient amount in the Bond Redemption Fund and Reserve Account to pay the principal of, premium if any, and interest on all outstanding Bonds payable out of such fund, at which time the money in the Reserve Account may be used to pay suct~ principal, premium if any, and interest. In the event there shall be a deficiency in the Bond Redemption Fund to meet maturing installments of either interest on or principal of and interest on the outstanding bonds payable out of such fund, such deficiency shall be made up from the Reserve Account by the withdrawal of cash therefrom. Any deficiency created in the Reserve Account by reason of any such withdrawal shall then be made up from the money in the Revenue Fund first available after making necessary provision for the payments required to be made into the Bond Redemption Fund to pay t~e principal of and interest on all outstanding bonds payable out of such fund and next coming due. Section 11. The amounts pledged to be paid into the Bond l~',edemption Fund and the Reserve Account created by this ordinance 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 -11- kind or nature except the normal costs of maintenance and o~eration of the water supply and distribution system and equal in rank to the charges which have heretofore been made upon the money in the Water Revenue Fund to pay and secure the payment of the principal of and interest on the 1953 bonds, the 1962 bonds, and ti~e 1967 bonds and any charges which may later be made upon the money in the ~,~ater Revenue Fund to pay and secure the payment of the F~rincipal of and interest on any Parity Bonds. Section 12. The corporate authorities of the City hereby declare in fixing the amounts to be paid into the Bond Redemption Fund and the Reserve Account as hereinbefore provided that ~.hey have exercised due regard to the cost of the maintenance and o~eration of the water supply and distribution system and the amounts necessary to pay the principal of and interest on the 1953 bonds, ti~e 1962 bonds and the 1967 bonds and have not obligated the City to set aside and pay into said Fund and Account a greater amount of tl~e revenue of the system than in tl~eir judgment will be available over such cost of maintenance and operation and the amounts necessary to pay such principal and interest. Section 13. Yhe City hereby covenants with the owner and holder of each of the bonds for as long as any of the same re-main outstanding as follows: A. That it will establish, maintain and collect rates and charges from customers of the System for as long as any 1953 bonds, 1962 bonds, and 1967 bonds, the Bonds and any Parity ~onds are outstanding, that will ~ake available for the payment of the principal of and interest on all of such bonds as the same shall become due, an amount equal to at least 1.5 times the g~-eatest amount required in any calendar year thereafter (except -12- for any balloon maturity year) to pay the principal of and interest on all of such bonds after normal costs of maintenance and opertion of the water supply and distribution system have been paid, but before depreciation. B. That it will at all times keep and maintain the System in gooG condition and repair, and will at all times operate tile System in an efficient manner and at a reasonable cost. C. That it will not sell or dispose of any of the properties of the System (unless the same are no longer used, useful or necessary in the operation thereof) unless provision is made for payment into the Bond Redemption Fund of a sum sufficient to redeem and retire all of the outstanding bonds payable out of such fund in accordance with the terms thereof. D. That it will not furnish service from System to any customer whatsoever free of charge. Section 14. The City i~ereby further covenants and af~rees with the onwer and holder of each of the Bonds as follows: A. That it will not create any special fund or funds for the payment of any other revenue bonds which will rank on a ~arity with or have any priority over the payment out of the ~ater Revenue Fund into the Bond Redemption and the Reserve Account created herein, except that the City hereby reserves ti~e right for 1. Tile purpose of redeeming or purchasing and r~tiring prior to their maturity any outstanding water revenue bonds of the City, or 2. The purpose of acquiring, constructing and installing additions and improvements to and extensions of, -13- acquiring necessary equipn~ent for: or raaking necessary replacements or other capital improveI~ents to the water system, 3. If said water supt~ly and distribution system is hereafter combined ~-~tih any sewage disposal system, then for t~e purpose of acquiring, constructing and installing additions and improvements to said combined system, or purchasing necessary equipment therefor, or making replacements or other capital improvements to such combined system, to issue a<iditional revenue bonds therefor and to create a special fl~nd or funds for the pay~ent of the principal and interest ti~ereof, into which fund or funds payments raay be n~ade fron~ the ~.'.~ater Revenue Fund of said City sufficient to pay the principal and interest on such additional bonds and to maintain an adequate reserve therefor if the same is required, w~ich such i.~ayments may rank equally with the payments out of the water Revenue Fund into the Bond Redemption Fund and Reserve Account created herein, upon compliance with the following conGitions: (a) That at the time of the issuance of such additional revenue bonds there is no deficiency in any Bond Redemption Fund or Reserve Account Created herein, or in any Bond Redempton Fund or Account which may i~ave been created for the payment of the principal of and interest on any revenue bonds heretofore or hereafter issued on a parity with the outstanding water revenue Bonds of the City authorized herein. (b) That it will provide in each ordinance creating a fund for the payment of the principal and interest of such additional revenue bonds for a reserve account into which must be paid within five years from the date of issue of such additional bonds an amount which, plus the amounts to be paid into the Reserve Account created herein, and all Reserve Accounts heretofore created, will equal the ~-Laxir~um princi;~al and interest required to be paid in any calendar year (exclusive of any balloon maturity year) on the bonds authorized herein and on such additional outstanding Bonds. (c) That at the time of the issuance of such additional revenue bonds the City shall have on file a certificate fron~ an independent licensed professional engineer or engineering firm setting forth his or its estimate of the net earnings to be received by the system as a result of the additions and improvements thereto and extensions thereof to be acquired, constructed or installed from the proceeds of the sale of such additional bonds, showing that such net earnings will equal at least 1.5 times the greatest amount required to be paid in any calendar year thereafter (exclusive of any balloon maturity year) into the Bond Redemption Fund and Reserve Account for tl'~e principal and interest on any revenue Bonds then outstanding on any revenue bonds which may have been later issued on a parity therewith, and on such additional revenue bonds being issued. Section 15. The Bonds shall be in substantially the following form: -15- UNITED STATES OF ;~,IERICA NO. $5,000 STATE OF WASHINGTON CITY OF WINSLOW WATER REVENUE BOND, 1972 The City of Winslow, Kitsap County, Washington, a municipal corporation of the State of Washington, hereby acknowledges itself to owe and for value received promises to pay to bearer on the first day of August, 19 , the principal sum of FIVE TItOUSAlqD DOLLARS together with interest thereon at the rate of % per annum payable on the first day of February, 1973, and semiannually on the first days of August and February of each year thereafter as evidenced by and upon presentation and surrender of the attached interest coupons as they severally become due, or until such principal sum shall have been paid or duly provided for. Both principal of and interest on the bonds of this issue are payable in lawful money of the United States of f~erica at the office of the Treasurer of the City of ~inslow, Winslow, Washington, solely out the special fund of the City known as the "Winslow 1972 Water Revenue Bond Redemption Fund." The City t~as reserved the right to redeem the bonds numbered 1-19 of this issue in inverse numerical order, on ti~e following interest payment dates and at the following -16- prices expressed as a percentage of the principal amount, plus accrued interest to the date of redemption: On or After August 1, 1982, at 102-1/2% On or After August 1, 1983, at 102% On or After August 1, 1984, at 101-1/2% On or After August 1, 1985, at 101% On or after August 1, 1986, at 100-1/2% On or After August 1, 1987, or on ;~ny interest payment date thereafter at 100% In addition the City has reserved the right to redeem the Bonds numbered 20-36 in inverse numerical order on any interest payment date or on or after August 1, 1973, at par plus accrued interest. Notice of any such intended redemption shall be given by one publication thereof in the official City newspaper not more than 40 nor less titan 30 days prior to said redemption date and by mailing a like notice at the same to William P. Harper & Son & Co., at its place of business in Seattle, Washington, or its successor in business, if any, at its main place of business. Interest on any bonds so called for rede~nption shall cease on such redemption date unless tile same are not paid in full upon presentation made pursuant to such call. This bond is one of an issue of 36 bonds of like amount, date and tenor, except as to number, interest rate and date of maturity, aggregating $180,000 in principal amount. All of said bonds are issued pursuant to ordinances of the City duly and regularly adopted for the purpose of providing funds to -17- acquire, construct and install certain additions and betterments to the water supply and distribution system of the City and for the purpose of redeeming and retiring certain outstanding water revenue warrants of the City. The bonds of this issue are payable both principal and interest out of the gross earnings and revenue of the water supply and distribution system of the City. The City hereby covenants and agrees with the owner and holder of this bond that it uill keep and perform all the covenants of this bond and of Ordinances Nos. 22 and 115 and 67-5 to be by it kept and performed. The City does hereby pledge and bind itself to set aside from the ri~oney in its Water Revenue Fund and pay into and maintain in the Bond Redemption Fund created by Ordinance No. (The "Bond Ordinance") and into the Reserve Account created therein the various amounts required by said ordinance to be paid into said funds and accounts, all within the times provided by said ordinance. The City has further pledged and bound itself to set aside and pay into said Water Revenue Fund as collected all the gross earnings and revenue of its ~ater supply and distribution system and all additions and improvements thereto and extens ions thereof. Said amounts so pledged to be paid into the Bond Redemption Fund and Reserve Account are hereby declared to be a prior lien and charge upon the money in said Revenue Fund superior to all other charges of any kind or nature except the normal charges of maintenance and operation of such ~.lyater supl.~ly and distribution system, and equal in rank to -18- any charges that may be made thereon to pay and secure the payment of the principal of and interest on the 1953 bonds, the 1962 bonds, and tile 1967 bonds and equal in rank to any charges tilat may be later n~ade upon the money in said Fund to pay and secure tile payment of the principal of and interest on any revenue ~Donds ~.~t~ich the City ma.y hereafter on a parity with the bonds of this issue. The City has further bound itself to maintain its water sup!.~ly and distribution systen in good condition and repair, to operate the sa~e in an efficient manner and at a reasonable cost and to establish, ~t~aintain and collect rates and charges for water ~-~i~ic]~, togeti~er ~-.~itI~ other revenue of the water supply and distribution syste~'L~ including any interest and penalties required to be paid into the ~/Jater Revenue Fund, that will make available for the payment of principal of and interest on the 1953 bonds, the 1962 bonds, the 1967 bonds and ti~e bonds of tl~is issue and any bonds issued on a parity therewith, an amount equal to at least 1.5 tinges the greatest amount required any calendar year to pay such princi}>al and interest (exclusive of any balloon rj:aturity year) as defined in the Bond Ordinance all of such bonds after norr~al costs of raaintenance and operation of such system have been paid. It is hereby certified and declared ti~at the bonds of ti~is issue are issued pursuant to and in strict compliance with the Constitution and laws of the State of ~'-~ashington, and ordinances of tile City of Winslow, and that all acts, conditions and things required to be done precedent to and in the issuance of ti~is bond have happened, been done and performed. -19- IN ~ITNESS WHEREOF, the City of Winslow, Washington, has caused this bond to be signed by its ;.-'layor, to be attested by its Clerk, the corporate seal of the City to be impressed hereon, and the interest coupons attached hereto to be signed with the facsimile signatures of said officials as of this first day of August; 1972. CITY OF WINSLOW, WASHINGTON ATTEST: by Mayor Ci~y-~Clerk Tl~e interest coupons attached to the bonds shall be in substantially the following form: 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 amounts shown hereon in lawful money of the United States of America, out of the special fund of the City known as "Winslow 1972 Water Revenue Bond Redemption Fund", said sum being the semiannual interest due that date on its water revenue bond dated August 1, 1972, and numbered CITY OF WINSLOW, WASHINGTON ATTEST: By Mayor City Clerk -20- S_ection 16. The bonds shall be signed on behalf of the City by its Mayor, shall be attested by its Clerk, and shall have the corporate seal of the City impressed thereon. The interest coupons attached thereto shall be executed with the facsimile signatures o f said officials. Section 17. The written offer of William P. Harper & Son & Co., Seattle, Washington, an investment banking corporation, ~ated August 7, 1972, to purchase the bonds under the terms and conditions of said bonds as set forth herein is hereby accepted on the terms set forth in said offer. Section 18. The proper City officials are hereby authorized and directed to do everything necessary for the prompt issuance, execution and delivery of the bonds to such purchaser and for the proper use and publication of the funds derived from such sale. PASSED by the Council of the City of Winslow, Washington and a?proved by its I-iayor at a regular meeting of said Council held this 7 th day o f Augus t , 1972. CITY Xi~( OF WINSLOW, WASHINGTON ~ Attorney City -21- EXHIBIT A Description of Improvements to the City Water System to be made by the City of Winslow, Washington and to be paid for by the proceeds of a bond issue in the amount of $1 80. 000. O0 augmented by a Federal Grant of funds from the U.S. Department of Housing and Urban Development. The purchase of approximately 0.9 acres of property the Southwest corner of which is the West Quarter corner of Section 27, Township 25 North, Range 2 East, W.M., and The drilling of a 12-inch diameter well, the construction of a 10,000 gallon capacity welded steel water storage tank, the construction of a cement block pumphouse 15'4" x 31'4", the purchase and installation of a 200-gallon-per-minute capacity well Dump, the purchase and installation of a 200-gallon-per-minute capacity booster pump, the purchase and installation of miscellaneous piping, fittings, valves, meters, gauges, chlorination equipment, controls, electrical service and switching gear, etc., for the Head of the Bay Water Facility; all located on City of Winslow property comprising aDDroximatel.v 2.33 acres the South- west Corner of which is the West Quarter corner of Section 27, Township 25 North, Range 2 East, W.M., and The construction of an eight-inch asbestos-cement water transmission line from the Head of the Bay Water Facility North 1170 feet and thence East 1300 feet on a 15-foot-wide easement through a Kitsap County gravel Pit and access road to the intersection of Donohue Road and Sportsman's Club road, thence with a franchise from the County Northeast along the Southeast shoulder of Sportsman's Club Road 1500 feet to the intersection with High School Road, thence alonq the South shoulder of High School Road East 735 feet to the intersection with Weaver Road and to the Northwest corner of the City Limits of the City of Winslow, thence along the South shoulder of High School Wa.y N.W. East 1060 feet to the inter- section with Commodore Lane, and The construction of a twelve-inch asbestos-cement water distribution line on the South shoulder of High School Way N.W. in the City of Winslow from the end of the eight-inch line described above, from the Intersection with CQmmQdnre Lane East 600 feet to the intersection with Grow Avenue N.W.~ thence South on the West shoulder of Grow Avenue 170 feet to an existing twelve-inch line 150 feet East of the Chatham Hill High Level Reservoir., and The construction of a twelve-inch asbestos-cement water transmission line from the juncture of the eight and twelve-inch lines on Hiqh School Way N.W. at Commodore Lane North 530 feet along the East shoulder of Commodore Lane to the intersection with Elizabeth place, thence East on a ten-foot-wide easement leased from the Bainbridge Island School District No. 303 275 feet, thence North on the lO-foot-wide easement 800 feet to the new High Level Reservoir site, thence East 25 feet to the new High Level Water Storage Reservoir, and The construction of a twelve-inch and a ten-inch Cast Iron Mechanical Joint Pipe crossing under High School Way N.W. each 36 feet long, one at Commodore Lane, and the other 100 feet West of Grow Avenue N.W., and The construction of a ten-inch asbestos-cement water service line 90 feet long to serve the School District Facilities, the relocation of a fire hydrant, and the purchase and installation of all required gate valves, check valves, and fittings required to connect the City system to the School District System, and The purchase and installation of all required valves, fittings, air valves, blowoffs, and accessories to complete the construction described above, and The procurement by lease of the use of the above described lO-foot easement on the School District .property and a lO0-foot x lO0-foot piece of School District property located~ in Section 22, Township 25 North, Range 2 East, W.M., the Southwest corner of said lO0-foot-square property being 1275 feet North and 132F) feet West of the Southeast corner of said Section 22; said lOO-foot-sauare piece of property being the site for the new HiC~h Level Water Storage Reservoir, and The construction of a 46-foot-diameter x 82-foot-high 1,000,000 .qallon capacity welded steel water storage reservoir located on the center of the lO~l-foot-square Dropert~v described above together with all required fittinms, valves, and accessories.