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1975-11-03
i i 1'le rlElla n t;1Ly Hall sv~v~wr >~ +7I7 Nesting called to r the yore Don M. Storey Councilmen resent: W D. S v®r; Marvin A. e; K eth sen; John 8. Na arro. Others anent: 8o r We er• ee 3tuart• Yernoa c ; Jo Fitzgerald; Ed Ira els sues ; 8 S lens Crawford; ~gsa s D. Michael Presto 8. S. awfo ; • H rt slant DDS; E~erald W. Yorl clq ; Minutes of previous sets s re d and approved. The Ma or announced hat here old be a a vial Ci ~ C ail sting Thursday night at 7: purpose of this mee p. ng. a canvas> o o a • The Mayor stated t for the $2,325 000. it Bo s nee isau ssary for the appo m It ie also uses es y o a appo agen t a depository for the Dees and revere ua wan the Meridian Breach y f th I a First National Bank be a point d the paying ~ Bond toads and the t '• evenu Notion passed: Skiv r, ye ; Raemnssen, yea; Bo ae~ yes; varro, lea. The Ma r ointed o the the hove motion does not incl a th eonatrnctlos account that needs ESA EPA State and be cal et up Mate to build the project Fonda. sad 1 e t o Mayor Storey mentio ed th matt r of drinld during Elec ion t ea. It was pointed out February 4, 1974 t t t hair e mot 13.qu on was wade and sego r diaper i~ ceases d d Elec ed on ion times _ in Meridiaa. The City Attorney a ated hat h rd liquor is covered wade ordi aaces and orb conawmption of d liq or during the time a po s ar opes. Dr. Humbert Valenti and tae ld W. Vorlicky were ~ Varese t to acuse the __ disscontinuiag of fl Gerald W. Vorlie -ride DDS s iaduc ke co d into the City wate cerni this matter • aye stet em. t t the beet method found to get drinking water and the a open vidsd uoridea into teeth for thro h e s t s otagh wend • red it __ ____ had bees diacontinu The Mayor explained begi:aning two wells placed on each well d. that of 1 he ai flow new tion has changed capacity were iavoly walla are mush heavi rec d an r in nt tiw inje flow. e. In the tors were __ It is extremely dif aenditi~a--a~s- icult to in use these fluorides der the egalar - An injector is plat at ach 1].. The Mayor stated t per Ps a some later time t mat er eo d be Bic Orton stated t t the press t equipment ie too uee on the new nature than before. This matter will be held in abe yance as is for the present. The Maros• instructed these Doctors to bring this matter up when the pumping we1L are more stable. Meridian City H all . 2. Novemlfer 3, 1975 Meridian Manor ~2 pre anted by Larry Sale of J II B to ea the ens an spec ca final approval befo osa rec or riling a propo as ire and utility installs e ion. e Thin a a or tea eonaiata o approximate The Ma or stated t ta. a oval been anted cane r water line sizes and a letter Prom J with this to assure -8 t es r a covers this. The flows are extended a vel toss r t comply veld st. The o ion wa ma e Y ve aeco~ the _ _ final Platt of Meri specificati~be a v r ~ b be accepted and the t to e w a t oval p the and Cit Vorkra Departments the Cit Fire De tment. Engi set S er Johnson, togeth r wit the hiet of the Motion passed: Skiv r, ye ; Basmuasesy yea; Bo e, a; varro, yea. The Mayor stated t the City snot concur with ere ole~ti s by the that the C -F cannot ve at this time without gr wth. He st tail that the School District t t t th y City has controlled gro wit rigid Mr. Skiver added the ng and Zoning telling them that t the ommi ac State ionr of bo had contacted stand on a moratori d has sot contacted con oY the it the by and Zoning nor have hey attend idea and not the P d a seta and with them. He atat ning~a desire at thi d t t fi~-is . is Chair John Fitzgerald stet d t t the mana~r in which the sal ion presented they intended. yor Dray s ate has continued becaus cause o e uncon planned developments o peo o that ercro ie ar gro are c of schools star moving into the ou lying ming from the City o ed a ey. eaa Meru osg t s pr no an ago an hem comes tom owth area. Payne Skiver discuss th I~pa t Area of the Compre eaai Plat . $ s seas e m y erg;-~ The Mayor read xesol tins Numbs 60 entitled: A RFrS TIO ADO A PUBLIC &IGH rOF~ AY; PROVIDING AN EE'FEC IVE TE 1~0 THE The Hotioa was made UTAN Ke eth ~ see and secoai b e S vet that _ the tales and paovia be read oa three dit one eren f 50- a ,.2 sad all rules req be din-eased with that that reaol solutions ztios ~6E1 - ~ ----- as read be passed Motion esedz ap Skiv veil. r a• Bo e a N varro ea Ordinance X285 wan r ad b he 8 THE CONSTRU OF THE CI TION OF AItiD D TION ~Il+' FENCES WI N IC HT;OF-iiAY~ -- -- The Motion was made be read on three dif y K eren eth days saes and aeaos ea be dispensed withand by that yne S vet that ce ,~28g as Motion sad: Skiv r e Baamussen a• Ho e a N varro. Ursa. • Meridian City Hall .3, Nevesber 3, 19?5 Gary Greens Chiet o Poli e, pr sented a bid speciti atio for sew po ve a e. The discussion wan o nce w should be contacte for ds t of town or oc o y. s sat er was t d o r to Police Department for _ t''-ot the Police Comsissionsr t e Chi f of Polies. John Navarro mention d a haPard located at M and is - r®Tat3ori o e par -_ o sc s c ma a re nt side. Thi+e creates a tratf o ha d the mornings es c en ek II Cam rs are vo ve . This setter is to be watc d b the Police De tmen . It was t t that perhaps a painted b to keep ion open to the We t on ine~ ar the intersection si t lve the obh. W. D. Skivers J. Nav C et of Police are to ok to setter. The City Attorney ids ate to form an Ordinanc that hi its y across th tr fic a reveae II-Tara. eh a atatn is not presently in the stn gtes Bi]1a were read: 9ouc Data Parpose ~Isount 93 10 8.75 City of Meridian '~ansfer lros Li~br 3,696.26 10 ~ ~' C 14 22.?5 Larry Scarborough or City Telephone 2.91 40 10 22 W 94~ 10 22.?5 Svsner Johnson City Engineer 1.00 940 1D :. 10 30.?5 t~iaayne D. Skiver Councilsan 104.30 940 10 He e W l.,.e,. ~~, 10 ".75 Marvin x. Bodine Councilsan 89.65 940 10 .? Johnny 8. Navarr _ 10 .?5 Brune D. Stuart Work's Supt. 651.04 10 .?5 Dews 8 Davis ~ ~ ~o _,~~,; l l0 .?5 Larry J. Schneider Labor 323.33 941 10 Bic Dean Crawfo - 2.«~-- 1 10 31).75 Gary L. Green Chief of Police 650.10 941 10 .?5 Larr V. Scarboro 6,Oq ~1 10. .?5 Gregory ~'. Boyd Patro]aas 540.31 941 10 .75 Warren Calhoun 1 10. .?5 dart' M. Hart atrolsan 525.52 941 10 -.75 Sick L. aichardson c 2,.91 1 10. .?5 Jean E. Moore lark-Typist 2?2.31 941 10. .?5 Herald J. Cox it Clerk Finance 0 tics 0 - .~ Helen G. 8yker assurer 366.28 94 10. -.75 LaWs~na L. Niesann lerk- II. ~ayree ]Ellen areas lark-Typist ?5.03 942 10. .75 Effie C. McDonald lark- ist Ann"M. K chart ark-Typist 327.85 942 10. 3!.75 Gina Marie Bc-len lsrk- ist 1 . '. 0 0. Fitzgerald ity Attorney 149.38 942 10. .75 anger L. Welker a Chief 88 -~ 3~. . S to Incose Tax Di sion es 318.55 94 ~. .?5 Deakin Janitorial S vice anitorial 1 .00 . mar, Inc. a Answering 30.00 94 10. .75 Pablic ~ to _ • Meridian City Ball .4. Nevesber 3, 1975 vouc Date - -__ - -- -- -- -- ~~~ ~ 94 10 31.75 Americas Fao:ily Lif Ae ante 17.74 l0 31.75 Norco upp ea 94 l0 31.75 Liquid Air, Inc. Maintenance 6.00 10 31.75 I et Natio pos ory , 94 10 31.75 Colonial Life & Acc eat Insurance. 231.00 l0 31.75 City of Meri as pease 94 10 31.75 Vernon Schoen Bldg. Inspector 675.25 l0 31.75 Ada County Highway s t 0 u s l0 31.75 Cit of Meridian Trash Service 12.30 - 10 . 31.75 ers a e tie esa Robertson Wholeaah _ _Iac. ea e. `_ - Supplies ~ 63.44 - . c~ ea co- ~ -- or a ~ 10 31.25 a. A. Thompson Co. Police Reports 66.40 10 31.75 Yates Baxilt Supplies Supplies 22. 9 l0 32.75 Meridian Plumb Parts 124.80 l0 31.75 Pitman oil co. Ftte1 55. 7 l0 31.75 vWR Scientific Works 243.48 10 31.75 John, O. Fitsgerald Attorney 5.40 94 l0 31.75 Menus Wardrobe IIniforma 14.98 l0 31.75 Elite Cleaners Police 1 .00 945 10 31.75 Ada Coast Sari di Landfill 46 . 5 14 31.75 Via-operative Oil Ass t a, c. Fuel 11.2 94 10 31.75 Addreaso a h Milti Su lies 16.06 9 5 10 31.75 Lomita Tag C©. Dog Tags 31. 94 10 31.75 Sus Ra Drive In I c. Fuel 41 5 ' 10 31.75 Boise City Comstinic ions Divis Mobile IInita 99.E 94 14 31.75 Idaho Power Con Service 2,L446.96 9 5 ' 20 31.75 Iatermoustain Q~as Co pang service 34.18 10 31.75 Z,aaaow~a Sn lies 41. 1 10 31.75 0-M®~er Ford S ea, Inc. Service 50.82 946 10 31.75 Snake River Electric Su Su lies .48 10 31.75 Pattl~s Conoco service 5.58 , 10 31.75 8albas Office Su Su lies 8 .81 1 31.75 Roma Tics Service Service 12.50 l0 31.75 Willey News-Tines Publi 98.46 31.?5 Barold~s Electric Materials 90.93 10 31.75 Storey Feed and Ses Cb. Su lies .60 .75 DYNA Systems Inc. Pants 7. 4 94 l0 31.75 Deckers, Inc. Dusters 16.60 - .'75 Meridian Auto Parts Parts 3.19 947 - l0 31.75 John & Billie Servic Service 144.82 er inn Lus r Co. Materials 90.2 947 10 31.75 Lembke Heating Col Maiatenaace 7.~ 10 31.75 Evans Lumber Conpaay Materials 1.2T- -` 947 14 31.75 Mcaraw Hill Book Cb. ~1ia sal 20.13 0 31.75 Storey Feed & Seed Supplies ~s6 94 10 31.75 Bodine~a Sav-On Gas Fuel 1.16 o .?5 Don's She11 Service Service 5. 10 31.75 Western Auto Aaaoda Ee Su iea 25.17 .fi5 Idaho Concrete Pipe Co., Iao. Material 111. 2 948 10 31.75 Ee-rl~s Auto Parts Parts 545.10 -1 .-75 Boyd Martin Co. Supplies .0~5 948 10 31.75 Meridian Su iea 41.54 -- ~aramotxa sa, c. Supplies 948 10 31.75 Meridian Pltua:bing Pipe 2.55 . it©~eer s n ~o~ee~a .e, Inc. Material$ 948 l0 31.75 Security Life of De er Insurance ~~.~ ~q o 0 or a Service 94 10 31.75 Mountain Bell Service 260.31 The Motion was aade y dine and seconded by Bane h sea s s as rs d be cello d. Motion sed: love ea e e a• N o ~ ~ Meridian City Hall .~. Novesber 3s 1975 The Bell #8 setter t die sad as in preKons seat is latioa o p as so perfors satisfaeto n y. on rac ~ un a s~ w It tree suggested t he failed to perfo the City ttorney look into th leg ty payiaa the Cit Clerk read he 1 at of Beer Pine and Li uo b liceases --fie reaerre or t These licenses are ae be fisc etisd year, n at the ial ^ et t after investigation y th Chie of Police and Polic io r. There be no othe busi eea t come before the Co it the s t stood ad3ourned. 0 a e y cc; Ma or• Coaacil• rnce• Chief Fits erald• Susner• AIC ACOG• ACHD• Central _ _ _ ___ Health; Ada Co Meridian Manor issi 2• W er8; 8 da Zoning; Nampa-Mar dial Irri i~is~ Bond Issue; ~ ~.-.~ • .:. Gam. Z2 ,~ ... Meridian, Idaho s'~ October 28, 1975 <.;~ e The City Council of the City of Meridian, Ada County, Idaho, met in public session at the regular meeting. place of the council in the City Hall in the City of Meridian, Idaho, at 7:30 o'''Glxack P.`M.; M.5.T., on October 28, 1975. The roll. t , ,,.,,~ was carped and.t following found to be present: ~, Don M. ''~ ore}~,~ : `` Mayor Wayne D.~~Skiver, Councilman Kenneth Rasmussen, Councilman.:;. - Marvin R. Bodine, ~ Councilman John R. Navarro, :Councilman Absent: None There were. also present Herald J. Cox, City Clerk, and John 0. Fitzgerald, City Attorney. After the meeting had been duly called to order and the minutes of the pzeceding meeting read and approved, the Mayor announced that one purpose of the meeting was to open the sealed. bids received for the purcha'~se of $2, 325,OOQ Water and Sewer Revenue Honds of the City of Meridian, Idaho. The City Clerk presented an affidavit executed by Edward L. Felsing, Fiscal Agent, showing that~a copy of the notice of the sa1~ of said laonds was mailed to the State Auditor of the State of Idaho on October 7, 1975, in full compliance with law, .and presented another affidavit showing publication 'of said notice of sale, in full compliance with. law, in the'Valley News-Times, the official newspaper of ,.~ the City of Meridian oh October .2, 1975,.October 9, 1'975,' ~~ ~~. ~~' and October l6, 1975, said publics ions having been made at • weekly intervals, the first having been made twenty-one (21) full days prior to the date fixed for the sale of said bonds. Such notification and publication and said affidavits were approved and the affidavits were ordered placed on file. The City Clerk announced that pursuant to said notice of sale 4 sealed bids for the purchase of said bonds had been received. The bads were opened and tabulated and found to be as follows: NAME 'OF BIRDER NET INTEREST COST PREMIUM Miller-Schroeder, Ir~c. 3,684,992.50 -0- (Minneapolis) Smith-Barney, Inc. 3,769,341.70 193.30 (New York) John Nuveen & Co., Inc. 3,814,907.50 -0- (Chicago) Foster and Marshall, Inc. 3,815,660.00 -0- (Seattle) r -2- • • It is mutually understood and., agreed that,,your acceptance of this offer and t~.e execution thereof by `your officials thereunto duly authorized, shall constitue a contract for the purchase and sale of said Securities. For information only: Respectfully submitted, Figures as of October 1, 1975 Miller-Schroeder Municipals, Inc. Gross Interest cost $3,684,992.50 Less premium -0- Plus discount -0- Net interest cost $3,684,992.50 By John Cleary Average rate 7.59$ fi` -3- (continued) • • The following ordinance was introduced in written form by pay., p_ g~i~x and was read by title. ~~~ $kiy~r moved that the rule requiring the reading of the ordinance three different days be dispensed with and the motion was adopted by the vote of not less than one-half plus one of the .members of the full council, to-wit: Aye : ifaYAt D. 8k1Vil~ Re~eth Rasmussen Marvin ~. Bodine Jo1sn It ~ Navaho Nay: None. The ordinance was thereupon again read by title and was read in full, after which, pursuant to motion made by 1ta~e D. ~klver and seconded by ~~~ R. g~ina , the ordinance was adopted by the following vote: Aye : ~I'ty~t D. SkiYer lGann-~fih Rasa~n~een Marvin R. Bodine JQi'u, A. Na~~rra Nay: None. The ordinance was thereupon signed by the Mayor in evidence of his approval, was attested by the City Clerk, was numbered and ordered recorded and is as follows: -~- r ORDINANCE N0. 283 AN ORDINANCE authorizing the issuance and confirming the sale of $2,325,000 Water and Sewer Revenue Bonds of the City of Meridian, Idaho, for the purpose of providing funds with which to pay the costs of constructing improvements and extensions to the combined municipal water system and municipal sewer- age system of the City of Meridian, Idaho, providing for the payment of such bonds, making certain covenants and agreements with respect to the security and pay- ment for such bonds and the use of the proceeds thereof, providing for the issuance and sale thereof, and providing an effective date. ~~~ ~~~ ~~~ WHEREAS pursuant to Ordinance Number 274 adopted by the City Council of the City of Meridian on February 14, 1975, a special municipal bond election was held in said City on March 11, 1975, at which election the following question was approved by a majority of the qualified electors voting at said election: QUESTION: Shall the City of Meridian, Tdaho, issue and sell its revenue bonds to the amount of $2,3.25,000 for the purpose of providing funds with which to construct improvements and extensions to the municipal water system and municipal sewerage system, the whole to constitute and be operated as a single revenue producing public utility, as more fully provided in Ordinance Number 274 adopted on February 14, 1975? and WHEREAS the City of Meridian, Idaho, considers it necessary and desirable for the benefit of said City to construct improvements and extensions to the combined municipal water system and municipal sewerage system consisting of improvements and extensions to the municipal water system, including wells, pumping and storage facilities, distribution lines and facilities, and of improvements and extensions to the municipal sewerage system, including a sewerage treatment plant .~ -5- ,~ and sewer interceptors, including a system of gravity and pressure sewer mains, lift stations and manholes, together with all other appurtenances necessary or useful for the treatment of water and the collection, transportation, treatment, purification and disposal of sewerage, and all lands or rights in land in connection therewith, including easements, rights of way, contract rights, leases, franchises, and other property, as provided in said Ordinance Number 274; and WHEREAS the revenues to be derived by said City from the operation of its municipal water system have not been pledged or hypothecated in any manner or for any purpose and the revenues to be derived by said City from the operation of its municipal sewerage system have not been pledged or hypothecated in any manner or for any purpose except for the payment of $275,000 Sewer Revenue Bonds of the City dated December 1 ,-1955, which remaining outstanding Sewer F,evenue Bonds dated December 1, 1855, have been called for redemption on June 1, 1975, there having been placed on deposit with the paying agent bank for the payment of the remaining outstanding Sewer Revenue Bends dated December ~, , 1955, an amount sufficient to pay the principal of said remaining outstanding Sewer Revenue Bonds plus accrued interest to the date fixed for redemption, plus the applicable premium, if. any, and tYie City desires to issue its Water and Sewer Revenue Bonds to the amount of $2,325,000 payable from such revenues in the manner for which provision is hereinafter made in order to pay part of the cost of such construction not paid from other sources, including Federal and state grants; .and .~ r . -6- WHEREAS it is desired to authorize the issuance of the aforesaid Water and Sewer Revenue. Bonds under the provisions of the Revenue Bond Act of Idaho, being Sections 50-1027 to 50-1042, Idaho Code, as amended, and said Ordinance Number 274; NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF MERIDIAN, ADA COUNTY, IDAHO, AS FOLLOWS: ARTICLE I DEFINITIONS That as used herein, the following terms shall have the meanings indicated unless the context otherwise clearly requires: 1.01 "Bonds" shall mean the $2,325,000 Water and Sewer Revenue Bonds of the City herein authorized, and in Articles III, IV and VI hereof shall mean any Parity Bonds hereinafter issued on a parity with the Bonds herein authorized under the provisions of this ordinance. 1.02 "City" shall mean the City of Meridian, Ada County, Idaho. 1.03 "Cost of Operation and Maintenance" shall mean all costs reasonably and necessarily incurred in connection with the operation and maintenance of the System, including repairs and renewals (other than capital improvements) necessary to keep the System in efficient operating condition, the cost of audits hereinafter required, fees of the Depository and of any paying agent, properly allocated charges for insurance hereinafter required to be carried on the System, and, generally, all expenses (exclusive of depreciation) which under general accounting practices are properly chargeable to operation and maintenance; in every instance, however, only .~ _7_ r such expenses as are reasonably and properly necessary to the efficient operation and maintenance of the System shall be included. 1.04 "Depository" shall mean ~Rm~ k~`~.~'E3C 1'Iei~.OTl~l1 IIank , in the City of M~~c~c~~.an , Idaho. If such bank shall become no longer available to carry out its duties as Depository, the City shall select a successor Depository bank which shall be a bank having capital and surplus of not less than $ i,t3bfl,©44 and which is a member of the Federal Deposit Insurance Corporation at the time of such appointment; similar successor Depositories may be appointed thereafter from time to time as such appointment becomes necessary. Such successor Depository shall replace the original Depository as Depository and custodian of the Bond Redemption Fund including the Reserve .Fund hereinafter created and required to be held by the Depository, and paid over to each such successor Depository by Depository all money, funds and other property then held by such predecessor Depository under this ordinance, or any subsequent ordinance aui issuance of any Parity Bonds. there shall be its predecessor of every nature the provisions of lhorizing the 1.05 "Fiscal Year" shall mean the twelve month period used by the City for its general accounting purposes as the same may be changed from time to time, initially being a twelve month period beginning on c~&X1EIt3~- ~. and ending on the next succeeding D~~~;t3l~3~t' 31 . -$- .~ ~ r 1,06 "Net Revenues" shall mean all revenues after deducting therefrom all sums expended for payment of the Cost of Operation and Maintenance of the System, including all incidental costs, fees and expenses expended from Revenues so deposited or with- drawn and properly chargeable to Costs of Operation and Maintenance. 1007 "Parity Bonds" shall mean any obligations which may be hereafter issued on a parity with the Bonds herein authorized pursuant to the conditions and restrictions hereinafter set forth in Article IV hereof. 1.08 "Revenue Bond Act" shall mean Sections 50-1027 to 50-1042, inclusive, Idaho Code, as amended. 1.09 "Revenues" shall mean all revenues, income~or profits of any kind howsoever derived directly or indirectly from water or sewer services, or both, supplied by the System, and from the use and operation of the System, including but without limitation monthly water and sewer service charges, connection fees collected from and after the date of adoption of this ordinance, interest received on invested money and profits realized from the sale of investments made with the Revenues of the System. 1.10 "Sewerage System" shall mean the same as is defined in the Revenue Bond Act, and as used herein shall apply to the facilities of the City coming within such definition, loll "Sinking Fund Year" shall mean the twelve month period beginning October 1 and ending on the next succeeding September 30. 1.12 "System" shall mean the public utility comprising the Water System of the City to be improved and extended in part s -9- with the proceeds of the Bonds, and the Sewerage System of the City to be improved and extended in part with the proceeds of the Bonds, the whole to constitute and be operated as a revenue producing public utility for said City, as it now and may here- after exist and be ~.mproved and extended while any of the Bonds or Parity Bonds remain outstanding, including all improvements, additions and extensions made thereto and including all real and personal property of every nature owned by the City and used or useful in the operation thereof, whether within or without the boundaries of the City. 1.13 "Water System" shall mean the same as is defined in Revenue Bond Act, and as used herein shall apply to the facilities of the City coming within such definition. ARTICLE II BOND DETAILS 2.01 That for the purpose of providing funds with which to pay part of the cost of constructing improvements and extensions to the System of the City, together with all necessary appurtenances, all pursuant to the preliminary report therefor which has been prepared and filed by J-U-B Engineers, Inc., Consulting Engineers, of Narnpa, Idaho, heretofore selected by the Council and Mayor of the City for such purpose, and on file in the office of the City Clerk, and including the payment of incidental engineering, inspection, legal and fiscal costs, there shall be borrowed upon the credit of the Revenues of the System the sum of $2,325,OOOa In evidence of the sum to be so borrowed, there shall be issued the negotiable revenue bonds of the City, pursuant to the provisions of Ordinance Number 274 and of the Revenue Bond Act, which revenue bonds shall be payable solely from the .~ -10- s ~ Revenues to be derived from the operation and ownership of the System, as more specifically herein provided. 2.02 That said Bonds shall be designated "Water and Sewer Revenue Bonds", shall be in the total principal amount of $2,325,000, shall be dated October 1, 1975, shall be in the denomination of $5,000 each, shall be numbered 1 to 465, inclusive, and shall bear interest at the rate or rates herein- after set out, payable April 1, 1976, and semiannually thereafter on the first days of April and October of each year. The Bonds shall be payable as to both principal and interest in lawful money of the United States of America at Ic~~h© ~'ir~~ P+~L`~.~'fY'1~1 Bak in the City of i~i~r~,d~.an , Idaho, and shall be numbered and mature serially in numerical order on October 1 of each of the years and bear interest as follows: BOND NUMBERS AMOUNT YEAR INTEREST RATE 1 to 5 $ 25,000 1977 7 6 to l0 25,000 1978 78 11 to 15 25,000 1979 ?~~ 16 to 21 30,000 1980 ?~ 22 to 27 30,000 1g81 7Bt 28 to 34 35,000 1882 7~ 35 to 41 35,000 1983 7~ 42 to 49 40,000 1984 7th 50 to 57 40,000 1885 7 58 to 66 45,000 1986 76 67 to 76 50,000 1987 7~ 77 to 87 55,000 1988 94t 88 to g8 55,000 1989 7~ 99 to 111 65,000 1990 7$ 112 to 124 65,000 1891 7.25a 125 to 138 70,000 1992 7,44t3~ 139 to 154 80, 000 1993 ?.~#~~ 155 to 170 80,000 1994 7.44 171 189 to t 188 20 g0,0o0 1995 7.fQ~ o 7 95,000 1996 7,~pu 208 to 228 105,000 1997 ?,6p$ 229 to 251 115,000 1998 9.64 252 to 275 •120,000 1998 7.g4~ 276 to 301 130,000 2000 7.7~$ 302 to 329 140, 000 2001 ?.7:"a~ 330 to 359 150,000 2002 i.7~~ 360 to 392 165,000 2003 "7,7:a 393 to 427 175,000 2004 7.75b 428 to 465 180,000 2005 ?.7a .i ~' -11- •~. •~ 2.03 Bonds numbered 58 to 465, inclusive, maturing after October 1, 1885, shall be subject to the right of the City to redeem the same in inverse numerical order on that date and on any interest payment date thereafter at par and accrued interest, plus a premium (expressed as a percentage of principal amount of each Bond so called for redemption) of 4% for each Bond so called for redemption on or prior to October 1, 1986, a premium of 3% for each Bond so called for redemption thereafter and on or prior to October 1, 1990, a premium of 2% for each Bond so called for redemption thereafter and on or prior to October 1, 1995, and a premium of l% for each Bond so called for redemption thereafter prior to maturity. Notice of any such redemption shall be given not less than thirty (30) days prior to the date fixed for redemption by publication of an appropriate notice one time in a financial newspaper or journal published in the City of New York, New York Chicago, Illinois, or San Francisco, California, and sent registered mail to the place of payment of the Bonds and to the ~._~_. ~,.._...~..._r....~ .._.,__~.w__..,.__._.____,...__~._.__~. .._.~W~..- ___._.__ __._~_._ ,_..___ .__,...._ ~ .~_..__.~~_.._...~ n._-, original purchasers of the Bonds If any Bond which is called Yfor redemption is,w at the time of such call, registered as to principal, thirty (30) days notice of redemption shall be given by registered mail sent to the registered holder at the address shown on the Registrar's Registration Books, No failure to give any such notice, or any defect therein, or in the mailing or publication thereof, shall affect the effectiveness of the call for redemption of any of the Bonds to be so redeemed. 2.04 That ,said Bonds shall be signed by the Mayor and shall be Countersigned by the City Treasurer (the signatures of said Mayor and City Treasurer being by facsimile), shall be .~ -12- •, .~ attested by the City Clerk, and shall have printed thereon the facsimile of the official seal of the City. Interest accruing on said Bonds on and prior to maturity shall be evidenced by coupons to be thereto attached, which coupons shall be signed by the City Treasurer by his facsimile signature. Said officials and each of them are hereby authorized and instructed to execute said Bonds accordingly, and the printed facsimile signatures of said Mayor and Treasurer upon said Bonds and coupons are hereby authorized as the authorized signing and execution of said Bonds and coupons by said officials who shall adopt, as and for their own proper signa- tures, their respective facsimile signatures appearing on said Bonds and coupons. Said Bonds shall be registrable as to principal in the name of the holder and with the effect more particularly set out in the form of bond appearing in Section 2.05 hereof. 2.05 That the Bonds herein authorized and the coupons to be thereto attached shall be in substantially the following form: • -13- r (Form of Bond) UNITED STATES OF AMERICA STATE OF IDAHO COUNTY OF ADA CITY OF MERIDIAN WATER AND SEWER REVENUE BOND Number $5,000 KNOW ALL MEN BY THESE PRESENTS, that the City of Meridian, a duly organized and existing municipal corporation in Ada County, Idaho, for value received, hereby promises to pay to bearer or, if this bond is then registered as to principal, to the registered holder hereof, in the mariner and from the funds hereinafter provided, the sum of Five Thousand Dollars ($5,000) on the first day of October, , and to pay interest on said sum from the date hereof until payment of principal at the rate of per cent ( %) per annum, payable initially on April 1, 1976, and semiannually thereafter on the first days of April and October of each year, interest falling due on and prior to maturity being payable upon presentation and surrender of the annexed interest coupons as the same severally become due. Both principal of and interest on this bond are payable in lawful money of the United States of America at Ids. fat :~~~a f~l, I3t~ ~, in the City of PJ1erZd~n Idaho . This bond is one of an issue of $2,325,000 bonds all of like date, tenor and effect, except as to date of maturity, option of redemption (and interest rate), issued by the City of Meridian under the provisions of the Revenue Bond Act of the .~ -14- ~ ~ State of Idaho, for the purpose of providing funds with which to pay part of the costs of constructing improvements and extensions to the combined municipal water system and municipal sewerage system of said city, and said bonds, together with such bonds as may be hereafter issued on a parity therewith, are payable only from the net revenues to be derived from the operation of the combined public utility comprising the municipal water system and municipal sewerage system of said city, the same to constitute and be operated as a revenue producing public utility for said city, as such system now and may hereafter exist and be improved and extended, a portion of which revenues has been set aside as a special fund identified as "City of Meridian, Idaho, Joint Water and Sewer Revenue Bond Redemption Fund", and irrevocably pledged to the payment of principal of and interest on said bonds. This bond does not constitute an indebtedness of the City of Meridian within the meaning of any constitutional or statutory limitation of indebtedness, is not payable from or a charge upon any-funds of the City of Meridian other than said "City of Meridian, Idaho, Joint Water and Sewer Revenue Bond Redemption Fund", and the City of Meridian shall not be subject to any liability thereon. No holder or holders of this bond shall ever have the right to compel any exercise of the taxing power of the City of Meridian to pay this bond or interest thereon nor to enforce payment thereof against any property of the City of Meridian, nor shall this bond constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City of Meridian, except the net revenues above mentioned. The bonds of the issue of which this bond is one, maturing after October 1, 1885, are subject to the right of .~ -15- said city to redeem the same in inverse numerical order on that date and on any interest payment date thereafter at par and accrued interest, plus a premium (expressed as a percentage of principal amount of each bond so called for redemption) of 4% for each bond so called far redemption on or prior to October 1, 1986, a premium of 3% for each bond so called for redemption thereafter and on or prior to October 1, 1890, a premium of 2% for each bond so called for redemption thereafter and on or prior to October 1, 1995, and a premium of 1% for each bond so called for redemption thereafter prior to maturity. Notice of any such redemption shall be given not less than thirty (30) days prior to the date fixed for redemption by publication, of an appropriate notice one time in a financial newspaper or journal published in the City of New York, New York, Chicago, Illinois, or San Francisco, California, and sent by registered mail to the place of payment of the bonds and to the original purchasers of the bonds. If any bond which is called for redemption is, at the time of such call, registered as to principal, thirty (30) days notice of redemption shall be given by registered mail sent to the registered holder at the address shown on the Registrar°s Registration Books. No failure to give any such notice, or any defect therein, or in the mailing or publication thereof, shall affect the effectiveness of the call for redemption of any of the bonds to be so redeemed. The City of Meridian has covenanted and hereby covenants and agrees at all times while this bond, or any bond of the issue of which it is a part, is outstanding and unpaid, to fix and maintain such rates for water and sewer services furnished by said public utility as will be fully sufficient to .~ -16- i2 ~ b provide for the payment of the interest on and principal of all of said bonds as interest and principal become due, to create a proper reserve therefor, and to provide for the payment of the expenses of operating and maintaining said public utility. For a more particular statement of the covenants and provisions securing the bonds, the conditions under which the holders of 75~ of the bonds payable from said net revenues may consent to modification of the authorizing ordinance and the conditions under which parity bonds may be issued on a parity with the Water and Sewer Revenue Bonds, reference is made to Ordinance Number ~~~ adopted by the City Council of said City on October 28, 1975, authorizing this issue. This bond and the issue of which it is a part are ` issued in conformity with and after full compliance with the Constitution of the State of Idaho and pursuant"to the provisions of the Revenue Bond Act of the State of Idaho, and all other laws applicable thereto, after having been authorized by vote of more than a majority of the qualified electors of said city at an election held on March 11, 1975. It is hereby certified, recited and declared that all acts, conditions and things required to exist, happen and be performed precedent to and in the issuance of this bond have existed, have happened and have been performed in due time, form and manner as required by law, that the amount of this bond, together with the issue of which it forms a part, does not exceed any limitation prescribed by the Constitution or statutes of the State of Idaho, that an amount of the revenues to be derived from the operation and ownership of the combined municipal water system and municipal sewerage system of the City of Meridian has been pledged and will be set aside into a special fund by said .~ ~' -17- s~ city sufficient for the prompt payment of the principal of and interest on this bond and the issue of which it forms a part, and that the revenues of the combined municipal water system and municipal sewerage system are not pledged, hypothecated or anticipated in any way other than by the issue of bonds of which this bond is one, and that this bond is exempt from taxation, except transfer and estate taxes, in the State of Idaho. This bond is by statute made fully negotiable, but may be registered as to principal only in the manner and with the effect for which provision is made on the back hereof. IN WITNESS WHEREOF, the City of Meridian, Idaho, acting through its City Council, has caused this bond to be signed by its Mayor, countersigned by its City Treasurer and attested by its City Clerk (the signatures of said Mayor and City Treasurer being by facsimile) and has caused the facsimile of the official seal of said city to be printed hereon, and has caused the interest coupons hereto attached to be executed by the facsimile signature of said City Treasurer, all as of this first day of October, 1975. (Facsimile Signature) Mayor Countersigned: (Facsimile Signature) City Treasurer Attest: City Clerk (FACSIMILE SEAL) '~ -18- (Form of Coupon) Number On the first day of unless the hereinafter mentioned bond is then callable for redemption and has been so called and provision for the redemption thereof duly made, the City of Meridian, Idaho, will pay to bearer the amount shown hereon in the manner and out of the funds described in the bond to which this coupon is attached, in lawful money of the United States of America, at ~~c3,n.7C;~t .~~t~t~..a`;. in the City of ,~i~~~di~n Idaho, being interest then due on its Water and Sewer Revenue Bond dated October 1, 1975, and numbered (Facsimile Signature) City Treasurer (Registration Certificate) We, the undersigned City Clerk and City Treasurer of the City of Meridian, Idaho, do hereby certify that the within bond has been duly registered in permanent public record books kept in our respective offices for the purpose of such registra- tion, in full compliance with the provisions of Title 57, Chapter 2, Idaho Code, and laws amendatory thereof, such registra- tion showing the number, date, amount of the bond, rate of interest thereon, date of maturity, pl~.ce of payment and the number and denomination of the attached coupons, and the names of the purchasers and date of the delivery of the bond; and the undersigned City Treasurer does hereby certify that before the delivery of this bond he received the proper consideration therefor. .. -19- IN WITNESS WHEREOF, we have subscribed our official (Facsimile Signature) City Treasurer (Facsimile Signature) City Clerk (Form of Registration Certificate) ,~ hands. This bond may be registered as to principal only, in the name of the holder, on the books of the City Treasurer in the City of Meridian, wh~.ch registration shall be noted by the City Treasurer in the blank below. .Upon presentation of this bond by a registered holder or by a bank or trust company authorized to do business in Idaho, with a written request that it be registered in the name of another person or in the name of bearer, the City Treasurer shall so register it. While registered in the name of a holder the principal hereof shall be payable only to such registered holder or his legal representa- tive but after registration to bearer this bond shall again be transferable by delivery but may be again registered as before. The registration of this bond as to principal shall not affect the negotiability of the coupons hereto attached, which shall continue to be transferable by delivery. In Whose Signature Date of Registration- Name Registered of Registrar .~ -20- ARTICLE III FLOW OF FUNDS ~~ 3.01 That the Net Revenues are hereby pledged to the payment of principal of and interest and redemption premiums on the Bonds, and the Bonds shall be secured by a prior and paramount lien on and first pledge of the Net Revenues. All of the Bonds shall be equally and ratably secured by said pledge and lien without priority one over the other by reason of date of sale or delivery. That the Bonds shall not be payable from or charged upon any funds of the City of Meridian other than the Revenues to be derived from the operation and ownership of the System, nor shall the City ever be subject. to any liability thereon. No holder or holders of any of the Bonds shall ever have the right to compel any exercise of the taxing. power of the City to pay any of the Bonds or interest thereon or to enforce payment thereof against any property of the City and such Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City, other than the Revenues received from the operation and ownership of the System. 3.02 That there is hereby established in the hands of the City Treasurer a special fund to be kept separate and apart from all other funds of the City to be known as the "City of Meridian Gross Income Joint Water and Sewer. System Account" (hereinafter sometimes referred to as the "Income Account"} into which fund, from and after the date of the delivery of the Bonds, there shall be credited all Revenues of the System as promptly as possible upon the receipt thereof. The Income Account shall be maintained so long as any of the Bonds remain outstanding in a -21- ~~ bank or trust company which is a member of the Federal Deposit Insurance Corporation, and the funds credited to said Income Account shall be expended only in the manner herein specified. 3.03 That there shall be first paid from the Income Account into a special fund hereby established in the Income Account to be known as the "City of Meridian Joint Water and Sewer System Operation and Maintenance Fund" (hereinafter some- times referred to as the "Operation and Maintenance Fund"), on the first day of each calendar month, the amount necessary to pay the Cost of Operation and Maintenance of the System as the same become due and payable. The Superintendent or Manager of the System may accumulate as a Cost of Operation and Maintenance equitable allowances for accruals and-accumulations of accruals of amounts to cover the cost of periodic payments of operation and maintenance expenses, such as, insurance premiums and expenditures for renewals, replacements and repairs normally classified as operation and maintenance expenditures. Payments from the Operation and Maintenance Fund shall be made by check or draft signed by the A~~aY~~= r~~~y Cle~~c and ~a~33ure~ after such officials shall have determined that the amounts of such payments are properly due and owing. 3.04 That there is hereby established in the Depository for the purpose of paying principal of and interest on the Bonds and such Parity Bonds as may hereafter be issued on a parity therewith a special fund to be kept separate and apart from all other funds of the City to be known as the "City of Meridian, -22- • Idaho, Joint Water and Sewer Revenue Bond Redemption Fund" (herein- after sometimes called the "Bond Redemption Fund"). 3.05 That upon the delivery of the Bonds that portion of the proceeds thereof which represents accrued interest shall be paid into the Bond Redemption Fund. In each Sinking Fund Year, after there shall have been transferred from the Income Account in each calendar month into the Operation and Maintenance Fund the amounts above required, the City shall, on the first day of each calendar month, transfer from the Income Account to the Bond Redemption Fund one-sixth of the amount of the interest due on the Bonds on the next succeeding interest payment date and, commencing on October 1, 1976, and on the first day of each calendar month thereafter, one-twelfth of the amount of the principal,~of the Bonds falling due on the next succeeding principal payment date (except that prior to the payment of the first maturing amounts of principal and interest coming due on any of the Bonds, such additional or greater transfers shall be made as~may be necessary to assure the prompt payment of such principal and interest when due). 3.06 That there is hereby established in the Bond Redemp- tion Fund for the purpose of establishing a reserve for the purpose of paying principal of and interest on the Bonds, a special fund to be kept separate and apart from all other funds of the City, to be known as the "City of Meridian, Idaho, Water and Sewer Revenue Bond Reserve Fund" {hereinafter sometimes called the "Reserve Fund"). 3.07 That~in each Sinking Fund Year after there shall have been transferred from the Income Account in each calendar month into the Operation and Maintenance Fund and into the Bond Redemp- tion Fund the amounts above required, the City shall, commencing .' -23- ~~ on January 1, 1976, and on the first day of each January, April, July and October thereafter, transfer from the Income Account to the Reserve Fund the sum of $10,200 until there has been accumulated in the Reserve Fund an amount equal to $204,000, to be used only to pay currently maturing principal of and interest on the Bonds whenever and to the extent necessary to prevent a default. 3.08 That after the Reserve Fund shall have been so accumulated, the monthly payments so made into the Bond Redemption Fund on the first day of each calendar month shall be only those hereinabove required to meet interest on Bonds payable from the Bond Redemption Fund due on the next interest payment date and the principal due within the next succeeding twelve month period and the quarterly payments so made into the Reserve Fund on the first day of each January, April, July and October shall be only those hereinabove required to maintain the Reserve Fund in the required amount if money shall ever be paid out of the Reserve Fund for the purpose for which it was created. Whenever Parity Bonds are issued, the proceedings authorizing the issuance thereof shall provide that the monthly deposits into the Bond Redemp- tion Fund shall be increased by an amount equaling at least one-half of the interest falling due on such additional Bonds on the next succeeding interest payment date and one-twelfth of the principal of such additional Bonds maturing during the next succeeding twelve month period, if any, and shall provide that the quarterly deposits into the Reserve Fund shall be increased by an amount equal to one-twentieth of the highest annual principal and interest requirements of such additional Bonds until the funds and investments in the Reserve Fund equal the combined highest .~ -24- '~ annual principal and interest payments on all Bonds and Parity Bonds then outstanding and payable from the Bond Redemption Fund, to be held as a reserve. Whenever there is a deficiency in payments into the Reserve Fund or, whenever after the initial accumulation of the full amount required to be accumulated therein, the amount in said Reserve Fund falls below such required accumulation, such deficiency shall be made up from the money in the Income Account whenever and to the extent such money is not needed for payment of the Cost of Operation and Maintenance and for current principal and interest requirements, regardless of the foregoing limitation on quarterly payments. The money in the Bond Redemption Fund, and the money in the Reserve Fund when necessary, shall be applied to the payment of currently maturing principal and interest without further instructions. The Depository and any successor Depository shall make such arrangement with the paying agent bank as will assure prompt payment of maturing Bonds and interest coupons when due to the extent of available funds. 3.Og That all money remaining in the Income Account each Sinking Fund Year after all payments hereinabove required to be made in such year have been made and after all deficiencies existing from previous years have been remedied shall be regarded as surplus and may be used by the City for the making of improvements or additions to the System, for the creation of a special fund to be accumulated and applied to such purpose, for the payment of principal of and interest falling due on general obligation bonds of the City issued for water or sewer purposes, for the payment of principal, interest and redemption premiums on junior lien bonds issued for the making of improvements and extensions to the System, for the retirement of Bonds payable from the Bond Redemption Fund in advance of maturity or for any other .~ -25- lawful corporate purpose. Any such retirements so made prior to maturity may be made either through the purchase of Bonds on the open market at the best price or prices obtainable not in excess of the lowest price at which any Bonds payable from the Bond Redemp- tion Fund are then redeemable under their terms, or through the calling of Bonds for redemption pursuant to the right therein reserved. 3.10 That all money held by the Depository in the Bond Redemption Fund, including the Reserve Fund above created, shall be held as special and not general deposits, and all money held in the Bond Redemption Fund, including the Reserve Fund, shall be held as a special trust fund, the beneficial interest in which shall be in the holders from time to time of the Bonds outstanding. ` All money so held in excess of the amount guaranteed by the Federal Deposit Insurance Corporation shall be secured either (a) by lodging with the trust department of the Depository or with some other depository approved by the City, as collateral security, direct obligations of or obligations, the principal and interest of which are unconditionally guaranteed by the United States of America, having a market value (exclusive of accrued interest) at least equal to the amount of such deposit, or (b) in such manner as may then be required by all applicable state or Federal laws and regulations regarding the security for or granting preference in the case of the deposit of trust funds. Money in the Bond Redemption Fund required for the payment of principal and interest shall at the request of the City be invested in direct obligations of the United States of America maturing at least ten days prior to the date as of which principal or interest falls due. Money held in the Reserve Fund portion of the Bond Redemption Fund shall .~ -26- at the request of the City be invested in direct obligations of the United States or any of its agencies, or in obligations the principal of and interest on which are guaranteed by the United States. It shall not be necessary for the Depository to give security for the deposit of any money which is so invested. Obligations so purchased shall be deemed at all times to be a part of the fund for which the obligations were purchased. Interest accruing thereon and any profit realized from such investments shall be paid into the Income Account. The Depository shall sell at prevailing market prices or shall present for redemption any obligations so purchased whenever it shall be necessary so to do in order to provide money to meet any payment due from the Bond Redemption Fund, including the Reserve Fund. 3.11 Whenever there is sufficient available money in the Bond Redemption Fund, including the Reserve Fund, to retire all Bonds then outstanding on the next interest payment date, or to pay principal and interest to maturity, or applicable redemption date, together with applicable redemption premiums, on all Bonds payable from the Bond Redemption Fund remaining outstanding, the money in the Bond Redemption Fund, including the Reserve Fund, shall be used for such purpose and no additional payments need be made into the Bond Redemption Fund or the Reserve Fund unless necessary to replace moneys lost or otherwise dissipated. 3.12 Each monthly or quarterly payment required to be made pursuant to Sections 3.05 and 3.07 hereof shall be made on the first day of each calendar month, except when the first day of a month shall be a Sunday or a legal holiday, in which event the payment shall be made on the next succeeding secular day. .f -27- ARTICLE IV COVENANTS AND UNDERTAKINGS ~• The City covenants and agrees with the successive holders from time to time of the Bonds and the coupons represent- ing interest thereon, that so long as any of the Bonds remain outstanding and unpaid as to either principal or interest: 4.01 That the City will maintain the System in good repair and working order and will operate it efficiently and will faithfully and punctually perform all duties with reference to the System required by the Constitution and laws of the State of Idaho, and that it will make and collect sufficient rates and charges for water and sewer service furnished by the System and will segregate and apply the Revenues derived therefrom in the manner provided in this ordinance. 4.02 That the City will fix and collect rates, fees and charges for all water and sewer service supplied by the System fully sufficient, after making due allowance for delinquencies in collection, to provide for the payment of the Cost of Operation and Maintenance, to provide for the payment of interest on and principal of all obligations payable from the Net Revenues of the System, including the Bonds herein authorized, as and when the same become due, and to establish the Bond Redemption Fund, including the Reserve Fund therefor herein- above required. 4.03 That in order to assure adequate Revenues to effect maximum security of the Bonds herein authorized and thereby reduce the rate of interest at which such Bonds may be sold, so far as it may legally do so, the City will fix and collect rates, fees and charges for all water and sewer service .~ -28- ~• supplied by the System which will be fully <~dequate and sufficient to make possible the prompt making of all payments herein required to be made and will produce in each Sinking Fund Year Net Revenues available for principal and interest equal to not less than 1.25 times the amount required to be paid into the Bond Redemption Fund for the payment of principal of and interest on all Bonds payable therefrom in such Sinking Fund Year. 4.04 That the City will not permit free use or free water or sewer service from the System to be given to the City or any department thereof or to any person, firm or corporation, public or private, or to any public agency or instrumentality. The reasonable cost and value of all water and sewer service rendered to the City, and its various departments, by the System shall be charged against the City and will be paid for as the service accrues from current funds of the City. All payments so made shall be considered Revenues of the System and shall be applied in the manner hereinabove p"rovided for the application of the Revenues of the System. 4.05 That the City will cause to be kept proper books of records and account, separate and apart from all other records and accounts of the City, in which there shall be made full and correct entries of all transactions relating to the System. Such books shall be kept in accordance with standard accounting practices and procedures customarily used for Systems of similar nature. The City will cause such books to be audited annually by an independent certified public accountant or firm of public accountants and will annually within one hundred twenty (120) days after the close of each Fiscal Year file with the Depository, a sufficient number, but . S -2g- not less than ten, copies of said report accompanied by a certificate by said accountant or firm. Each such audit, in addition to whatever other matters may be thought proper by the accountant to be included therein, shall include the following: 1. A statement in detail of the income and expenditures of the System for such Fiscal Year. 2. A balance sheet as of the end of such Fiscal Year. 3. The accountant's comments regarding the manner in which the City has carried out the requirements of this ordinance and the accountant's recommendations for any changes or improvements in the operation of the System. 4. A list of insurance policies and fidelity bonds in force at the end of the Fiscal Year, setting out as to each policy and bond the amount of the policy, the risks covered, the name of the insurer and the expiration date. 5. The number of metered water customers of the System and the number of unmetered water customers, if any. 6. The number of sewer customers of the City. 7. The amount of money in each of the funds and accounts enumerated in Article III hereof at the beginning and at the end of the Fiscal Year and the amount of money paid into and expended from each of said funds during such Fiscal Xear. 8. The total dollar amount billed for water and sewer service during the Fiscal Year and the average monthly billing per customer for each class of service. g. All schedules of rates and charges in effect during such Fiscal Year. 10. The number of gallons of water passing through the master meter in such year, the number of gallons of water used for flushing mains and fighting fires and the number of gallons of water unaccounted for. -30- i _ .~ 11. A general statement concerning any events or circumstances which might affect the financial status of the System. 4.06 That all expenses incurred in the making of the audits required herein shall be regarded and paid as a Cost of Operation and Maintenance. The City further agrees to furnish a copy of each such audit to the original purchasers of the Bonds and to the holder of any of the Bonds who shall request the same in writing, and that any such holder of the Bonds shall have the right to discuss with the accountant making the audit the contents of the audit and to ask for such additional infor- mation as he may reasonably require. Said books of record and account shall be open at all reasonable times for inspection by the holder or holders of any of the Bonds or the duly authorized attorney or agent for said bondholder during normal business hours. 4.07 That the City agrees to procure or cause to be procured, and maintain, so long as ariy of the Bonds or Parity Bonds are outstanding, fire and extended coverage insurance on all physical properties of the System normally insured by public utility companies engaged in the operation of a Water and Sewerage System, in amounts sufficient to provide for not less than full recovery whenever the loss from causes covered by insurance does not exceed eighty per cent (80%) of the full insurable value of the damaged facility. In the event of any damage to, or the destruction of any building or facility constituting part of the System, the City Council shall forthwith reconstruct the damaged or destroyed portion thereof, or shall replace any such building or facility with like facilities of equal or greater capacity, and shall arrange for the application of the proceeds of the insurance for that purpose. .r -31- ~' The City also agrees to procure or cause to be procured, and maintain, so long as any of the Bonds or Parity Bonds are outstanding, public liability insurance with limitations of not less than $100,000 for one person and $300,000 for more than one person involved in one accident to protect the City from claims for bodily injury and death, or both, which may arise from the operations of the System, or any other facilities owned by the City the Revenues of which are pledged to the payment of the Bonds. The City also agrees to procure or cause to be procured and maintain, so long as any of the Bonds or Parity Bonds are outstanding, vehicular public liability insurance with limits of not less than $100,000 for one person and $300,000 for more ` than one person involved in one accident to protect the City from claims for bodily injury and death, or both, which may arise from the operation by the city employees of vehicles owned by the City and non-owned vehicles operated for the benefit of the City. 4.08 That the City shall not sell, lease, encumber, alienate or in any manner dispose of the System or any substantial part thereof until alJ_ of the Bonds have been paid in full as to both principal and interest; provided, that this covenant shall not be construed to prevent the disposal by the City of property which in its judgment has become inexpedient to use in connec- tion with the System, when other property of equal value is substituted therefor. 4.Og That the City will commence and complete the construction of the improvements and extensions to the combined municipal Water System and municipal Sewerage System .~ -32- .rte.: ~ for which the Bonds herein authorized are issued with all practical dispatch and will cause all construction to be effected in sound and economical manner. 4.10 That the City will from time to time duly pay and discharge or cause to be paid and discharged all taxes, assessments and other governmental charges, if any, lawfully imposed upon the System or any part thereof or upon the Revenues, as well as any lawful claims for labor, materials or supplies which if unpaid might by law become a lien or charge upon the System or the Revenues or any part thereof or which might impair the security of the Bonds. 4.11 That the City will not hereafter permit nor grant a franchise for the operation of any competing Water System or any competing Sewerage System in the City. 4.12 That the City in order to assure the efficient management and operation of the System and to assure the holders from time to time of the Bonds that same will be operated on sound business principles, will employ competent and experienced management for the System, will use its best efforts to see that the System is at all times operated and maintained in-first class repair and condition and in such manner that the operating efficiency thereof shall be of the highest character, and will use its best efforts to see that the cost of such operation and maintenance is at no time in excess of the Revenues reasonably available for the payment thereof. 4.13 That the holders of the Bonds from time to time shall be entitled to ,exercise all rights and powers for which provision is made in the Revenue Bond Act, including specifically, if any of the Bonds shall be permitted to default as to principal or interest, the right to apply to a court of competent jurisdiction to appoint a receiver for the System who may .~ enter and take possession of the System, operate and maintain -33- ' • the System, and prescribe charges and collect, receive and apply the Revenues arising therefrom in such manner as the court may direct and as will assure the carrying out of all the covenants contained in this ordinance. Such receiver shall be appointed only when request for such appointment shall have been made by the holders of not less than forty per cent in principal amount of the Bonds which are then outstanding, or by a trustee acting in behalf of the holders of such percentage of Bonds, and such request shall be represented by a written instrument or concurrent written instruments signed by such holders and filed with the application for the appointment of such receiver. 4.14 That the Bonds shall enjoy complete priority ` of lien on the Revenues and that the City will issue no other Bonds or obligations of any kind or nature payable from or enjoying a lien on the Revenues unless such other bonds or obligations are made subordinate to the Bonds herein authorized; provided, however, that additional Parity Bonds may be authorized by ordinance of the City Council and issued on a parity with the Bonds herein authorized if all of the following conditions are met: A. (1) The City Clerk files a certificate with the Depository certifying that the City is in full compliance with all of the covenants and undertakings in connection with all Bonds and Parity Bonds of the City then outstanding and payable from the Net Revenues of the System or any portion thereof. (2) The Net Revenues of the System for the last complete Fiscal Year next preceding the adoption by the City Council of the City of the ordinance authorizing the .~ -34- ~ • issuance and confirming the sale of the additional Parity Bonds, as shown by an audit rendered by an independent public accountant employed by the City, when added to the estimated amount of the increase in the Net Revenues for the first full Fiscal Year in which the improvements, extensions, additions or betterments to the System to be acquired with the proceeds of the additional Parity Bonds will be in Qperation (such estimate to be evidenced by a certificate of an independent consulting engineer of recognized skill and experience in the field of waterworks. and sanitary engineering, which certificate shall be approved by the Mayor and by resolution of the City Council), are equal to at least 1.25 times the ` highest annual debt service on all Bonds and Parity Bonds then outstanding and payable from the Bond Fund and on the additional Parity Bonds then proposed to be issued. (3) Such additional Parity Bonds may be issued only for the purpose of improving the System, or for the purpose of acquiring, constructing or providing extensions, additions or betterments to the System. (4) The ordinance authorizing the issuance of such additional Parity Bonds shall provide that the last maturity date of the additional Parity Bonds shall not be earlier than the last maturity date of any Bonds thereto- fore issued and then outstanding payable from the Bond Fund and shall provide for fixed serial maturities or mandatory minimum sinking fund payments, or any combination thereof, in such amounts as will be sufficient to provide for the payment or retirement of all such additional Parity Bonds on or before their respective maturity dates. ~~ -35- ~? (5) The payments required to be made into the various funds and accounts provided in Article III hereof must be current and it is agreed and understood that the full amounts required hereunder or in any future ordinance to be accumulated in the Reserve Fund need not have been accumulated at the time of the issuance of such Parity Bonds, if all required quarterly deposits thereinto shall have been made and are current. (6) The additional Parity Bonds must be payable as to principal on October 1 of each year in which principal and interest falls due and payable as to interest on April 1 and October 1 of each year. (7) The proceedings authorizing the issuance of the additional Parity Bonds must provide that the amount to which the Reserve Fund is to be accumulated be increased to an amount at least equal to the combined highest annual principal and interest payments on all Bonds then outstanding and payable from the Bond Fund, including the additional Parity Bonds so proposed to be issued, within five years from and after the delivery of the additional Farity Bonds. B. The Bonds (including Parity Bonds) or any part thereof may be refunded with the consent of the holders thereof (except that as to maturing Bonds or Bonds which are then optional for redemption and have been properly called for redemption, such consent shall not be necessary) and the refunding bonds so issued shall enjoy complete equality of lien with the portion of the Bonds which is not refunded, if any there be, and the refunding bonds shall continue to enjoy whatever priority of lien over .~ -36- -` subsequent issues that may have been enjoyed by the Bonds refunded, but no refunding bond may mature on a date earlier or bear interest at a rate higher than the corresponding Bond refunded thereby without the consent of the holders of the unrefunded portion of the Bonds then outstanding. 4.15 That the City shall bill each customer receiving both water and sewer service from the City in a single bill, will refuse to accept payment for either service unless payment for the other service is also made, and if payment for either service is permitted to become delinquent and remain so for a period of sixty days, will discontinue the service of water to any premises the owner or occupant of which shall be so delinquent, and will not recommence the supply of water to such premises until all delinquent .charges with penalties shall have been paid in full. The City will do all things and exercise all remedies legally available to assure the prompt payment of charges for all service supplied by the System. 4.16 That the City will require the owner, tenant or occupant of each lot or parcel of land in the City upon which a building shall have been constructed for residential, commercial or industrial use within 300 feet, measured along an accessible route, of any sanitary sewer line to connect such building with the sewage collection system of said City and to cease to use any other method for the disposal of sanitary or industrial sewage. If within a period of 15 days after the owner of any such lot or parcel shall have been notified to make such sewer connection, such connection is not made, the City will discontinue the service of water to such lot or parcel and will not recommence supplying water thereto until such sewer connection shall have been made. .~ -37- • 4.17 That in addition to all other rights enjoyed by the holders of the Bonds, such holders shall have the right by mandamus or other appropriate suit or action in any court of competent jurisdiction to enforce his or their rights against the City, the governing body thereof, and any officers, officials and agents thereof, including, but without limitation, the right to require the City and its governing body to fix and collect rates and charges fully adequate to carry out all of the provisions and agreements contained in this ordinance. 4.18 That all payments falling due on the Bonds for principal and interest shall be made to the holders thereof at par and all charges made by the Depository and any paying agent bank shall be paid by the City. 4.19 That prior to the delivery of the Bonds, the City shall have adopted an ordinance establishing schedule of rates and charges to be imposed for water and sewer service rendered by the System. Said schedule of charges shall be considered a minimum while any of the Bonds remain outstanding, and shall be subject to such increase from time to time as may be neces- sary to permit full compliance with all of the provisions and requirements of this ordinance, but shall be subject to reduction only when and to the extent that the Revenues available for payment into the Bond Redemption Fund in each of the two immediately preceding Fisca]_ Years shall have exceeded one and one-half times the total principal and interest payable from said fund during each such respective preceding Fiscal Year. .~ -38- ARTICLE V SALE OF BONDS AND APPLICATION OF PROCEEDS 5.01 That the sale of the Bonds herein authorized to Milks-echsa~~icr ici .ale, 2r-c. of ~®~~c„olia , 1~3irut®~ttat , and associates, at the price of par and accrued interest to the date of delivery and a premium of $ -3- is hereby in all respects ratified and confirmed. Said Bonds shall be printed and executed as soon as may be and thereupon shall be delivered to the aforementioned purchaser upon receipt by the Treasurer of the City of Meridian of the agreed purchase price. 5.02 That so much of the proceeds of the sale of the Bonds as represents accrued interest shall be paid into the Bond Fund. The remainder of the proceeds of the sale of the Bonds not required to pay expenses incident to the issuance of the Bonds which are payable at the time of the delivery of the Bonds, shall be paid into a separate fund to be used, together with state and Federal grants available for the purpose, for the payment of the cost of constructing the improvements and extensions to the System for which the Bonds are issued. The money in such fund shall be held in the hands of Ps~=~ & M.etc~tA ~'~~'~ ~~ Bank, in ~'~~ric4ian , Idaho, in a separate account therein to be known as the "City of Meridian Joint Water and Sewer System Construction Account" (hereinafter sometimes referred to as the "Construction Account"). The funds in the Construction Account shall be held and paid out solely for the purpose for which the Bonds are herein authorized and until so paid shall be subject to a lien and charge in favor of the holders of the Bonds herein authorized outstanding .~ -39- i at any time and shall be held for the further security of such holders until so paid out. The money in the Construction Account to be used for the payment of the cost of constructing the aforesaid improvements and extensions to the System shall be withdrawn from the Construction Account from time to time by the Treasurer of the City only upon submission to him of the following: (a) A requisition signed by the Public Works Superintendent stating specifically the purpose for which the requisition is issued and indicating that the payment for which the requisition is issued has been approved by the City Council; and (b) Each requisition for withdrawal of funds by the Public Works Superintendent for payment to a contractors for work done in connection with of improvements and extensions to the System accompanied by a certificate executed by the of construction stating the nature of the wo: amount due and payable thereon. contractor or the construction shall also be engineer in charge ^k completed and the Moneys in the Construction Account shall be secured by the bank holding the same in the manner prescribed by law for the securing of public funds. If moneys on deposit in the Construction Account exceed the estimated construction disbursements for the next sixty (60) days, the City Treasurer may invest, or cause to be invested, such excess funds in direct obligations of, or obligations the principal of and interest on which are guaranteed by, the United States Government, which shall mature. not later than 18 months after the date of such investment and which shall be subject to redemption at any time by the holder thereof. The earnings from any such invest- ment shall be deposited into the Construction Account. After .~ -~40- ,~.., • all construction costs have been paid, the engineer in charge of the same shall certify to the City that the construction has been completed according to said plans and specifications, and upon approval of the completion of the work based upon the engineer's certificate by the City and after all costs have been paid, the engineer shall execute a certificate and file it with the bank holding the Construction Account certifying that the construction has been completed in accordance with the plans and specifications and that all costs have been paid. After the construction of the improvements and extensions to the System shall have been completed, any money remaining in the Construction Account from the proceeds of the sale of the Bonds herein authorized or from any earnings on investments, after all costs shall have been paid or reserved, shall be deposited into the Reserve Fund. 5.03 That the principal proceeds of the sale of said Bonds shall be devoted to and used with due diligence for the completion of the construction of improvements and extensions to the System for which said Bonds are hereby authorized to be issued. The City represents and certifies that: (1) the City has heretofore incurred or, within six months after delivery of the Bonds expects to incur, substantial binding obligations with respect to said construction; said binding obligations comprising n Contssot orith JtTB Engineer ., Tnc . , .nor t~;*~ c'®~ic~n end s3i~+~rvi ~ica*~ of tl~Q sewer ~.n~.t c*aLc~r n~ntr. in the amount of not less than $100,000;. .~ -41- ~-. (2) the City expects that over 85% of the spendable proceeds of said Bonds (including investment proceeds) will be expended on or before October 1, 1978, for the purpose of paying the cost of said construction, said date being within three years following the date of issue of said Bonds; (3) work on the said construction is expected to proceed with due diligence to completion; (4) said System has not been and is not expected to be sold or otherwise disposed of in whole or in part prior to the last maturity of said Bonds; (5) all of the principal proceeds of the Bonds are needed for the purposes stated in the form of Bond above set out, including the expenses incidental to such purpose and to the issuance of .the Bonds; and (6) to the best of the knowledge and belief of the City there are no facts, estimates or circumstances that would materially change the conclusions and representations set out in this section. The City also certifies and further covenants with the purchasers and holders of said Bonds from time to time outstanding that so long as any of said Bonds remain outstanding, moneys on deposit in any fund or account in connection with said Bonds, whether or not such moneys were derived from the proceeds of the sale of said Bonds or from any other sources, will not be used in a manner which will cause such Bonds to be "arbitrage bonds" within the meaning of Section 103(d) of the Internal Revenue Code of 1954, as amended, and any lawful regulations promulgated or proposed thereunder, including Sections 1.103-13 and 1.103-14 of the Income Tax Regulations .~ -42- • s (26 CFR Part 1), as the same presently exist, or may from time to time hereafter be amended, supplemented or revised. The City reserves the right, however, to make any investment of such moneys permitted by state law if, when and to the extent that said Section 103(d) or regulations promulgated thereunder shall be repealed or relaxed or shall be held void by final decision of a court of competent jurisdiction, but only if any investment made by virtue of such repeal, relaxation or decision would not, in the opinion of counsel of recognized competence in such matters, result in making the interest on said Bonds subject to Federal income taxation. ARTICLE VI MODIFICATION 6.01 That the provisions of this ordinance shall constitute a contract between the City and the holders from time to time of the Bonds (including Parity Bonds) and after the issuance of any of the Bonds, no change, variation or alteration of any kind in the provisions in this ordinance may be made except as follows. 6.02 That the holders of seventy-five per cent in principal amount of the Bonds at any time outstanding (not including in any case any Bonds which may then be held or owned by or for the account of the City, but including such refunding bonds as may be issued for the purpose of refunding any of the Bonds and are not owned by the City) shall have the right from time to time to consent to and approve the adoption by the City of an ordinance or ordinances modifying or amending any of the terms or provisions contained in this ordinance; provided, however, that this ordinance may not be so modified or amended in such manner as to: .~ -~+3- (a) Make any change in the maturity of the Bonds. (b) Make any change in the rate of interest borne by any of the Bonds. (c) Reduce the amount of the principal or redemption premiums payable on the Bonds. (d) Modify the terms of payment of principal or of interest or of redemption premiums on the Bonds or any of them or impose any conditions with respect to such payment. (e) Affect the rights of the holders of fewer than all of the Bonds then outstanding. (f) Amend this Article. 6.03 That whenever the City shall propose to amend or modify this ordinance under the provisions of this Article, it shall cause notice of the proposed amendment to be published one time in a financial newspaper or ,journal published in the City of New York, New York, San Francisco, California, or Chicago, Illinois, and on or before the date of. such publication the City shall cause to be mailed a copy of such notice to the registered holders of any of the Bonds and Parity Bonds which are then registered as to principal. Such notice shall briefly set forth the nature of the proposed amendment and shall state that a copy of the proposed amendatory ordinance is on file in the office of the City Clerk for public inspection. 6.04 That whenever at any time within one year from the date of the publication of said notice there shall be filed in the office of said Clerk an instrument or instruments executed by the holders of at least seventy-five per cent in aggregate principal amount of the Bonds then outstanding as in .~ '~ -44- this Article defined, which instrument or instruments shall refer to the proposed amendatory ordinance described in said notice and shall specifically consent to and approve the adoption thereof, thereupon, but not otherwise, the City Council may adopt such amendatory ordinance and such ordinance shall become effective. If the holders of at least seventy-five per cent in aggregate principal amount of the Bonds as in this Article defined, at the time of the adoption of such amendatory ordinance, or the predecessors in title of such holders, shall have consented to and approved the adoption thereof as herein provided, no holder of any Bond whether or not such holder shall have consented to or shall have revoked any consent as in this Article provided shall have any right or interest to object to the adoption of such amendatory ordinance or to object to any of the terms or provisions .therein contained or to the operation thereof or to enjoin or restrain the City from taking any action pursuant to the provisions thereof. 6.05 That any consent given by the holder of a Bond pursuant to the provisions of this Article shall be irrevocable for a period of six months from the date of the publication of the notice above provided for and shall be conclusive and binding upon all future holders of the same Bond during such period. Such consent may be revoked at any time after six months from the date of the publication of such notice by the holder who gave such consent or by a successor in title by filing notice of such revocation with said City Clerk, but such revocation shall not be effective if the holders of seventy-five .~ -~5- per cent in aggregate principal amount of the Bonds outstanding as in this Article defined have prior to the attempted revocation consented to and approved the amendatory ordinance referred to in such revocation. The fact and date of the execution of any instrument under the provisions. of this Article may be proved by the certi- ficate of any officer in any jurisdiction who by laws thereof is authorized to take acknowledgments of deeds within such jurisdiction, that the person signing such instrument acknowledged before him the execution thereof, or may be proved by any affidavit of a witness to such execution sworn to before such officer. As to any Bonds registered as to principal, the ownership thereof for purposes of this Article shall be established by the Registrar's registration books. As to any Bonds not so registered, the amount and numbers of the Bonds held by any person executing such instrument and the date of his holding the same may be proved by a certificate executed by any responsible bank or trust company showing that on the date therein mentioned such person had on deposit with such bank or trust company the bonds described in such certificate. ARTICLE VII MISCELLANEOUS 7.01 That immediately after the issuance of the Bonds herein authorized, a certified copy of this ordinance shall be filed by the City Clerk with the Depository, together with the certificate by the City Clerk that such Bonds have been so issued and are outstanding. 7.02 That if any one or more provisions, clauses, paragraphs, sections or articles of this ordinance or the application thereof to any set of circumstances shall be held .~ ~~ -46- to be invalid for any reason, such holding shall not affect the validity or enforceability of the remaining provisions, clauses, paragraphs, sections and articles hereof, nor the application thereof to other sets of circumstances. 7.03 That the Mayor and City Council and the City of Meridian, in consideration of the purchase of said Bonds by the aforesaid purchasers, hereby covenant and agree with the holders of the Bonds from time to time, that neither the City nor the Mayor and City Council of said City will ever waive, or agree to waive, as to the March 11, 1975 bond election, the time limitation provisions of subsection B of Section 34-2001A of the Idaho Code. 7.04 That all ordinances or parts thereof in conflict herewith are to the extent of such conflict hereby repealed, and that this ordinance shall be published in one issue of the Valley News-Times, the official journal of said City, and shall take effect and be in full force immediately upon its passage, approval and publication. 7.05 That an emergency existing therefor, which emergency is hereby declared to exist, this ordinance shall be in full force and effect immediately upon its adoption and approval. PASSED AND APPROVED this 28th day of October, 1975. AP VED: //~~ ~"" ~~ Attest, /7/~ ~ , Mayor ~' .~ ~ity Clerk ~ .~ -47~