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19690520 1969-3ORDINANCE NO. 1969-3 AN ORDINANCE authorizing and providing for the issuance of $?00,000 Water Revenue Bonds, Series 1966, of the City of Fairfax, Virginia, for the purpose of constructing extensions and improve- ments to the municipal water system of said City, prescribing the form of said proposed bonds, pro- viding for the payment of the principal and inter- est thereof and setting forth the terms and condi- tions upon which the said bonds and additional bonds ranking on a parity therewith are to be and may be issued and outstanding. WHEREAS, the City of Fairfax is a duly incorporated and existing municipal corporation of the Commonwealth of Virginia operating under the provisions of a Charter granted by the General Assembly of Virginia, being Chapter 319 of the Acts of the Assembly of 1966, as amended; and WHEREAS, by ordinance heretofore adopted by the Council of said City on October 4, 1966, it was proposed that said City construct extensions and improvements to the municipal water system of said City, same being a specific undertaking from which said City presently derives a revenue and will continue to derive a revenue, and in and by said ordinance it was further proposed to borrow money and issue bonds of said City to the amount of $?00,000 for the purpose aforesaid under the provisions of Paragraph (b) of Section l~? of the Constitution of Virginia and Sections 15.1-170 et seq. of the Code of Virginia 1950, as amended, and Chapter 8 of the Charter of said City so that said bonds are not' to be included within the limitation of indebtedness of said City contained in Section lR? of the Constitution of Virginia and Section 15.1 - 176 of the Code of Virginia 1950, as amended, but are to be payable as to both principal and interest exclusively from the receipts and revenues of the undertaking; and WHEREAS, pursuant to an Order by the Circuit Court of Fairfax County entered upon filing with it of a certified copy of said ordinance an election was duly called and held in and for said City whereat there was submitted the question of issuing such bonds; and WHEREAS, from the certification of the results as filed with this Council by the Clerk of said Circuit Court at said elec- tion on November 8, 1966, more than a majority of the qualified voters of said City voting upon the question voted in favor of the issuance of said bonds, and said proposition was declared .duly carried; and WHEREAS, said City of Fairfax presently owns and operates the water system supplying water for public, commercial and domestic purposes in and to said City and its inhabitants, and in that con- nection said City presently has outstanding: $4,22~000 principal amount of 3-3/4%~- 3-7/8 % Water Revenue Bonds dated June l, 195b pursuant to an ordim~nce adopted September 3, 1958, matur- ing serially on June I of each of the yearsl969 to 1991, inclusive, and which by their terms are payable only from the net revenues to be derived from the operation of said municipal water system; and $950,000 principal amount of 3-3/4% Water Revenue Bonds, Series 1965, dated June l, 1965 pursuant to an ordinance adopted June 8, 1965, maturing serially on June I of each of the years 1990 to 199~, inclusive, and which by their terms are payable only from the net revenues to be derived from the operation of said municipal water system on a parity with said Water Revenue Bonds dated June l, 1956; and WHEREAS, in and by said ordinances adopted September 3, 1958 and June 8, 1965, the right and privilege were reserved by said City under conditions and restrictions therein set out of issuing additional bonds from time to time payable from the net revenues of said municipal water system and ranking on a parity with said bonds dated June 1, 1956 and June 1, 1965, which condi- tions and restrictions are found to exist and prevail currently so -2- as to permit the issuance of such additional bonds to the amount of $700,000 as hereinafter provided and ranking on a parity with said presently outstanding bonds dated June l, 1956 and June l, 1965; and WHEREAS, due to unforeseen circumstances, including problems involving land acquisition, the construction of the exten- sions and improvements to the municipal water system for account of which said bonds are to be authorized and issued has been unavoid- ably delayed but it is now deemed advisable and necessary by the Council at this time to adopt an ordinance authorizing and provid- ing for the issuance of said bonds and setting forth the terms and conditions on which said bonds and additional bonds ranking on a parity therewith are to be and may be issued and outstanding; NOW, THEREFORE, Be It And It Is Hereby Ordained by the Council of the City of Fairfax, Virginia, as follows: Section 1. The following terms shall have the following meanings in this ordinance unless the text otherwise expressly requires: (a) "City" shall mean the City of Fairfax, Virginia. (b) "Bonds" shall mean the $700,000 Water Revenue Bonds, Series 1966, originally authorized to be issued pursuant to this ordinance and the interest coupons attached to said Bonds and shall also be deemed to include the outstanding Water Revenue Bonds dated June l, 1956 and Water Revenue Bonds, Series 1965, dated June l, 1965, referred to in the preamble hereof and the interest coupons attached thereto and also any bonds and the interest coupons attached thereto subsequently issued pursuant to and within the limitations, restrictions and conditions contained in this ordinance providing for the creation of additional parity obligations payable from the revenues of said Water System and having parity as to lien and source and security for payment from said revenues with the $700,000 Water Revenue Bonds, Series 1966, originally author- ized by this ordinance and said outstanding Water Revenue Bonds dated June l, 1956 and Water Revenue Bonds, Series 1965, dated June 1, 1965. (c) "Holder of bonds" or "bondholder" or any similar term shall mean any person who shall be the bearer or owner of any outstanding bond or bonds registered to bearer or not registered or the registered owner of any outstanding bond or bonds which shall at the time be registered other than to bearer or of any coupons representing interest accrued or to accrue on said bonds. (d) "Water System" shall mean the complete water system now owned by said City or hereafter constructed or acquired, including the extensions and improvements to be constructed from the proceeds of the bonds authorized by this ordinance or from any other sources, together with all lands or interest therein, plants, buildings, machinery, franchises, pipes, fixtures, equipment and all property now or hereafter owned or used in connection therewith and including all parts thereof. (e) "Revenues" shall mean all moneys received by the City in the payment of the rates, fees and charges for water furnished by the Water System and all other income derived by the City from the operation or ownership of the Water System. (f) "Current Expenses" shall mean the City's reasonable and necessary current expenses of maintenance, repair and operation of the Water System and shall include, without limiting the generality of the foregoing, all ordinary and usual expenses of maintenance, repair and operation, which -4- may include exDen~eB not annually recurring, all adminis- trative expenses and any reasonable payments to pension or retirement funds properly chargeable to the Water System, insurance premiums, engineering expenses relating to main- tenance, repair and operation, fees and expenses of the paying agents for the bonds as hereinafter set forth, legal expenses, any taxes which may be lawfully imposed on the Water System or the income therefrom and reserves for such taxes and any other expenses required to be paid by the City under the provisions of this ordinance or by law, but shall not include any reserves for extraordinary maintenance or repair or any allowance for depreciation or any deposits to the credit of the special funds provided by this ordinance. (g) "Net Rev~ues" for any particular period shall mean the amount of the excess of the Revenues of the Water System over Current Expenses during such period. Section 2. That the City construct extensions and im- provements to the municipal Water System of said City, which is a specific mndertaking from which said City derives a revenue, and for the purpose of paying the cost thereof there be borrowed by and on behalf of said City the sum of Seven Hundred Thousand Dollars ($700,000), and in evidence thereof there be issued Water Revenue Bonds, Series 1966, of said City in the principal amount of ~?00,000, which bonds shall not be included within the limitation of indebtedness of said City contained in Section 1~7 of the Con- stitution of Virginia and Section 15.1-176 of the Code of Virginia 1950, as amended, but shall be payable as to both principal and interest exclusively from the Revenues of said Water System, all as hereinafter more specifically provided. Section 3. That said Water Revenue Bonds, Series 1966~ be numbered consecutively i to 140, inclusive, of the denomination -5- of $5,000 each, be dated December 1, 1966, and bec~ne due and payable in numerical order on June i of the respective years as follows: Year Amount 1995. $340,000 199b 360,000 provided, however, all of said bonds shall be optioo~l for redemp- tion prior to maturity in whole or from time to time in part in the inverse order of their maturities (less than all of a single maturity to be selected by lot) at any time on or after June l, 1976, at the redemption prices set forth below, together with the interest accrued thereon to the date fixed for redemption: If Redeemed On or after June l, 1976, to and including June l, 1981 Thereafter to and including June l, 1~86 Thereafter to and including June l, 1991 Thereafter to maturity Redemption Price (Percentage of Principal Amount) 103-1/.~% lO1 % Notice of any such redemption identifying the bonds to be redeemed will be given by publication at least once not less than thirty (30) days prior to the redemption date in a newspaper or financial Journal of general circulation published in the City of New York, New York. All of said bonds thus called for redemption and for the redemption of which funds are duly provided will cease to bear interest on such redemption date. That said bonds shall bear interest at the coupon rate of six per cent (6%) per annum (or at such lesser rate or rates of interest as may be determined and fixed by the Council as a result of competitive bidding and public sale of said bonds as hereinafter provided), which interest will be payable semiannuall~ on JUne I and December I in each year; that such interest be evidenced by proper coupons attached to each of said bonds and -6- that both principal and interest be payable in lawful money of the United States of America at the principal office of The First and Merchants National Bank of Richmond, in the City of Richmond, Virginia, or, at the option of the holder of the respective bonds and interest coupons, at the principal office of The Chase Man- hattan Bank (National Association) in the City of New York, New York. Said bonds shall be executed by the Mayor and City Treasurer of said City by their manual or facsimile signature s, sealed with the corporate seal of said City either by impression or facsimile and attested by the manual signature of the City Clerk of said City, and the interest coupons attached to said bonds shall be executed with the facsimile signatures of said Mayor, City Treasurer and City Clerk~ and said ~ficials shall adopt as and for their own proper signatures their respective facsimile signatures appearing on said coupons. All of said bonds, together with the interest thereon and additional bonds ranking on a parity therewith heretofore issued and outstanding or that may be hereafter issued and outstanding from time to time under the conditions and restrictions hereinafter set forth, shall be payable as hereinafter more specifically provided only out of the Principal and Interest Fund, heretofore created by said ordinance adopted September 9, 1958, and said bonds shall be a valid claim of the holder thereof only against said fund and the portion of the Net Revenues of the municipal Water System of said City pledged to said fund. Section 4. That upon presentation at the office of the City Clerk of said City of any of said bonds same may be registered as to principal in the name of the owner on the books in his office~ such registration to be noted on the reverse side of the bonds by the City Clerk~ and thereafter the principal of such registered bonds shall be payable only to the registered holder, -7- his legal representatives or assignS. Such registered bonds shall be transferable to another registered holder or back to bearer only upon presentation to the City Clerk with a legal assignment duly acknowledged or proved. Registration of any of such bonds shall not affect the negotiability of the coupons thereto attached, but such coupons shall be transferable by delivery merely. Section 5. That said bonds and couponsand provisions for registration shall be in substantially the following form: No. (Form of Bond) UNITED STATES OF AMERICA COMMONWEALTH OF VIRGINIA CITY OF FAIRFAX WATER REVENUE BOND SERIES 1966 $5, ooo KNOW ALL MEN BY THESE PRESENTS that the City of Fairfax, in the Commonwealth of Virginia, for value received, hereby pro- mises to pay to bearer or, if this bond be registered, to the registered holder hereof,as hereinafter provided, the sum of Five Thousand Dollars ($5,000) on the first day of June, 19 , and interest on said sum from the date hereof until paid at the rate of per cent ( ~) per annum, payable semiannually on June I and December i in each year, except as the provisions hereinafter set forth with respect to prior re- demption may become applicable hereto, all such interest as may accrue on and prior to maturity hereof to be paid upon presenta- tion and surrender of the annexed interest coupons as the same severally mature, both principal and interest being payable in lawful money of the United States of America at the principal -8- office of The First and Merchants National Bank of Richmond, in the City of Richmond, Virginia, or, at the option of the holder hereof, at the principal office of The Chase Manhattan Bank (National Association) in the City of New York, New York. This bond is one of a series of bonds numbered consecu- tively i to 140, inclusive, aggregating $700,000 principal amount, issued by said City for the purpose of paying the cost of con- structing extensions and improvements to the municipal Water System of said City as authorized by the qualified voters of said City voting at an election duly called, noticed and held for said purpose under and in full compliance with the Constitution and Statutes of Virginia, including among others Paragraph (b) of Section 127 of said Constitution and Sections 15.1 - 170 et seq. of the Code of Virginia 1950, as amended, and chapter 8 of the Charter of said City and pursuant to an ordinance duly adopted by the Council of said City. The bonds of the series of which this bond is one shall be optional for redemption prior to maturity in whole or from time to time in part in the inverse order of their maturities (less than all of a single maturity to be selected by lot) at any time on or after June l, 1976, at the redemption prices set forth below, together with the interest accrued thereon to the date fixed for redempt ion: If Redeemed Redemption Price (Percentage of Principal Amount). On or after June l, 1976, to and including June l, 1981 lO4-1~2~ Thereafter to and including June l, 1986 10~-1~2% Thereafter to and including June l, 1991 102-1/2~ Thereafter to maturity lO1 % Notice of any such redemption identifying the bonds to be redeemed will be given by publication at least once not less than thirty (30) days prior to the redemption date in a newspaper or financial -9- Journal of general circulation published in the City of New York, New York. All of said bonds thus called for redemption and for the redemption of which funds are duly provided will cease to bear interest on such redemption date. This bond and the series of which it is one with inter- est thereon, together with additional bonds ranking on a parity therewith heretofore issued and outstanding and that may be here- after issued and outstanding from time to time under the condi- tions and restrictions set forth in said ordinance, are payable only from the Net Revenues to be derived from the operation of said municipal Water System, a sufficien~ portion of which has been ordered set aside and pledged as a special fund heretofore created and identified as the "Principal and Interest Fund." This bond does not constitute an indebtedness of said City within the meaning of any constitutional, statutory or charter limita- tions, but said City covenants that it will fix such rates and charges for services rendered by said Water System and collect and account for receipts and revenues therefrom sufficient to pay promptly the principal of and interest on this bond and the series of which it is one and all other bonds ranking on a parity therewith as may be outstanding from time to time. This bond is fully negotiable but may be registered as to principal only in the name of the holder on the books of said City in the office of its City Clerk, such registration being noted hereon by the City Clerk, and after such registra- tion no transfer shall be valid unless made on said books and similarly noted on the bond~ but it may be discharged from such registration by being transferred to bearer, after which it shall be transferable by delivery, but it may be again registered as before. The registration of this bond as to principal shall not restrain the negotiability of the coupons by delivery merely. -10- It is hereby certified, recited and declared that all acts, conditions and things reGuired to exist, happen and be performed precedent to and in the issuance of this bond and the series of bonds of which it is one have existed, have happened and have been performed in due time, form and manner as reGuired by law; and that the amount of this bond, together with all other obligations of said City, does not exceed any limit prescribed by the Constitution or Statutes of Virginia; and that a sufficient portion of the Net Revenues of said Water System has been ordered set aside and will be set aside into said special fund by said City and applied to the payment of the principal of and interest on this bond and all other bonds ranking on a parity therewith heretofore or hereafter issued and outstanding as the same will become due. IN WITNESS WHEREOF, said City of Fairfax, in the Commonwealth of Virginia, has caused this bond to be executed by its Mayor and City Treasurer by their manual or facsimile signa- tures and its corporate seal to be impressed or imprinted hereon, attested by the manual signature of its City Clerk, and the coupons hereto attached to be executed with the facsimile signa- tures of said Mayor, City Treasurer and City Clerk, and this bond to be dated the first day of December, 1966. Ma~or ~ ATTEST: City Treasurer City Clerk -ll - NO. (Form of CoUpon) the City of On the first day of , 19 Fairfax, Virginia, will pay to bearer Dollars ($ ) out of the Principal and Interest Fund at The First and Merchants National Bank of Richmond, in the City of Richmond, Virginia, or, at the option of the holder hereof, at The Chase Manhattan Bank (National Association) in the City of New York, New York, as provided in and being interest then due on its Water Revenue Bond, Series 1966, dated December l, 1966, Number . Mayor Attest: City Treasurer City Clerk (Form for Registration to be printed on the back of each bond) Date of Registration In Whose Name Registered Signature of City Clerk Section 6. That responsive to Section lB of said ordinance adopted September 3, 19~58 and Section 8 of said ordinance adopted June 8, 1965, it is hereby found and de- clared that prior to the issuance of any of the bonds hereby authorized there will have been procured and filed with the City Clerk of said City a statement by Alvord, Burdick & Howson, Engineers, of Chicago, Illinois~ an independent firm of consult- ing engineers, as the term "independent firm of consulting engineers" is defined in said ordinances, reciting the opinion based upon necessary investigations that the estimated Net Revenues of the municipal Water System of said City, as the term "Net Revenues" is therein defined, in each of the succeeding calendar years will be not less than 1.~O times the combined interest and principal requirements for the corresponding calendar years for the bonds presently outstanding and the bonds herein authorized and proposed to be issued, and it is hereby further represented and declared that prior to the issuance of any of the bonds hereby authorized contracts for the immediate construction of the extensions and improvements for account of which such bonds have been hereby authorized shall have been entered into; and, accordingly, it is hereby further found and declared that the bonds hereby authorized shall be payable from the Net Revenues of the municipal Water System of said City and from the "Principal and Interest Fund" on a parity with the Water Revenue Bonds dated June l~ 1956, and Water Revenue Bonds, Series 1965~ dated June l, 1965~ of the City heretofore issued and presently outstanding. Section 7. That all proceedings preliminary to and in connection with the issuance of the Water Revenue Bonds dated JUne l, 1956~ and Water Revenue Bonds, Series 1965, dated June l, 1965, heretofore issued and presently outstanding, and particular- ly the ordinances adopted September 5, 1958 and June 8, 1~65, whereby provisions were made for the operation of the municipal Water System; for the imposition~ charging and collection of rates for all services rendered by said Water System to said City and its citizens~ corporations or others served thereby; for the creation of special funds designated as "Revenue Fund," "Operation and Maintenance Fund, " "Principal and Interest Fund, ""Reserve Fund~" "Renewal, Replacement and Extension Fund" and "Bond Redemption I~und" and for the payments into said special funds and withdrawals therefrom of specified amounts for authorized purposes; for the keeping of proper books of record and account and the au- dlting thereof; for the restricted sale, lease, mortgage or other disposal of said Water System, including any and all extensions and additions that may be made thereto; for the adoption of an annual budget for Current Expenses of said Water System; for carry- ing of insurance; for the modification or amendment of the ordinances and of this ordinance; and for the enforcement and payment of said bonds, are all hereby ratified and confirmed and, except as other- wise provided in this ordinance, shall continue in force and inure to the security and benefit of the bonds herein authorized the same as if such provisions and proceedings were herein set out in full; provided that the amount of the Net Revenues of said municipal Water System to be paid into the "Principal and Interest Fund" during the respective calendar years shall be sufficient to pay when due the interest on and principal of all of said bc~ds dated June l, 1956, June l, 1965, and the bonds herein authorized to be issued and also any additional bonds ranking on a parity therewith that may be issued and outstanding under the conditions and re- strictions hereinafter set forth. It is hereby determined that from and after the issuance of any of the bonds hereby authorized the minimum amount to be paid into said'Principal and Interest Fund each month shall be increased over the amount as provided by said ordinances adopted September 9, 1958 and June 8, 1965, by an amount equal to not less than one-sixth of the amount of interest on the bonds issued pursuant to this ordinance which will mature and be- come due on the next semiannual interest payment date and an amount equal to not less than one-twelfth of the amount of principal (if any) of the bonds issued pursuant to this ordinance which will mature and become due on the next annual principal maturity date. It is hereby recognized that in and by said ordinances adopted September 3, 1958 and June 8, 1965, provisions were included for the accumulation in the "Reserve Fund" of an amount equal to the maximum amount that will become due in any succeeding calendar year for both principal and interest on all bonds then outstanding which are payable from the Principal and Interest Fund and further that upon the issuance of any additional parity bonds provision must be made for the accumulation in the Reserve Fund within the first ten years after the issuance of such additional bonds of a reserve equal to at least the maximum amount of principal and interest becoming due in any succeeding calendar year on all bonds then outstanding, and said proceedings are hereby ratified and confirmed. It is hereby recognized that there is presently in said Reserve Fund the sum of $ 334,555.00 ., and it is hereby agreed that from and after the issuance of any of the bonds hereby authorized there shall be set aside into said Reserve Fund each month an amount equal to 20% of the monthly payments required to be paid into the Principal and Interest Fund as provided in said ordinances adopted September 3, 1958 and June 8, 1965, and in this ordinance so that within ten years after the issuance of the bonds hereby authorized the amount accumulated and maintained in said Reserve Fund will be equal to at least the maximum amount of principal and interest be- coming due in any succeeding calendar year on all bonds then out- s t and lng. Section 8. It is hereby recognized that under said ordinances adopted September 3, 1958 and June 8, 1965, provisions were included for the municipal Water System to be operated on an annual budget year commencing as of January 1 of each year, however, due to a state program recently placed in effect in the Commonwealth -15- of Virginia which reGuires standardization of reporting dates ~n a fiscal year basis for municipal utilities~ including water systems and inasmuch as the City presently prepares its city audit on a fiscal year basis commencing as of July I of each year it is deemed necessary and advantageous for the municipal Water System to operate on a similar fiscal year basis. Accordingly, it is hereby~ represented a~ declared that beginning July l~ 1~69 the municipal Water System shall be operated on an annual budget year commencing as of July I of each year and ending on June 90 oF the following year. Section 9. The bonds hereby authorized from time to time outstanding, together with additional bonds ranking on a parity therewith heretofore issued and outstanding or that may be hereafter issued and outstanding under the restrictions and con- ditions hereinafter set forth, shall not be entitled to priority one over the other in the application of the Revenues of said Water System regardless of the time or times of their issuance. Said City hereby covenants and agrees so long as any of the bonds issued pursuant to this ordinance are outstanding and unpaid no other bonds or obligations payable from the Revenues of said Water System or from any improvements or extensions thereof will be issued or in- curred unless the security and obligation of payment from such Revenues are made subject to the priority of the payments from the Revenue Fund into the Principal and Interest Fund and Reserve Fund for account of the bonds hereby authorized and any additional parity bonds as may be outstanding from time to time. Said City hereby reserves the right and privilege of issuing additional bonds from time to time payable from said Principal and Interest Fund ranking on a parity with the bonds herein authorized in order to pay the cost of future extensions~ betterments or improvements to the -16- municipal Water System of said City; but before any such bonds ranking on a parity may be issued for such future extensions, betterments or improvements, there shall be procured and filed with the City Clerk of said City a statement by an independent consulting engineer or firm of consulting engineers reciting the opinion based upon necessary investigations that the estimated Net Revenues of the municipal Water System of said City in each of the succeeding calendar years will be not less than 1.30 times the combined interest and principal requirements for the corres- ponding calendar years for all bonds to be outstanding after the issuance of such additional bonds. In making the foregoing com- putations such consulting engineer or Firm of consulting engineers shall take into consideration the past experienced revenues of said Water System with adjustments to reflect any increases by reason of any revision in the schedule of rates and charges being imposed at the time of the issuance of such additional bonds, by reason of the extensions, betterments and improvements the cost of which is to be paid through the issuance of such additional bc~ds and by reason of any projected population growth in the area served by said Water System. In no event shall any such additional bonds be issued unless prior to the issuance thereof contracts for the immediate construction or acquisition of the extensions, betterments and improvements for account of which such additional bonds are to be issued shall have been entered into. The interest payment dates for all such additional parity bonds shall be semiannually on June i and December i of each year with the principal maturities thereof on June I of any year in which any such principal is scheduled to become due. At or before the time of issuance of any such additional -l?- parity bonds as aforesaid provision shall be made for the payment into the Principal and Interest Fund each year in equal monthly installments of sufficient additional Net Revenues of said Water System to pay the interest on such additional bonds as it becomes due, to pay the principal thereof at or before maturity and to accumulate in the Reserve Fund within the first ten years after the issuance of such additional bonds a reserve equal to at least the maximum amount of principal and interest becoming due in any succeeding calendar year on all the bonds then outstanding. Section 10. The proceeds of the bonds hereby authorized, exclusive of accrued interest and except as hereinafter otherwise provided, shall be applied to the extent necessary in paying the cost of constructing extensions and improvements to the municipal Water System of said City in accordance with the plans and speci- fications therefor prepared by Alvord, Burdick & Howson, Engineers, of Chicago, Illinois, now on file with the City Clerk and which extensions and improvements are generally described as consisting of an earthen dam across Beaver Dam Creek and necessary appurte- nances thereto. The financing cost and incidental expenses at- tributable to the preparing, printing and selling of the b~nds hereby authorized shall be paid from the proceeds of said bonds upon orders of the Council. The proceeds of said bonds thus set apart for construction costs shall be paid out only upon certifi- cation by the firm of Alvord, Burdick & Howson or other independent consulting engineer or firm of consulting engineers retained by the City to supervise the construction work to the effect that the re- spective amounts of such expenditures represent amounts due and pay- able for land acquisition, materials furnished or work or services performed in connection with the construction of the extensions and improvements to the municipal Water System being financed by the -18- bonds hereby authorized. Pending expenditure such proceeds shall be deposited in a bank or banks, and each such deposit to the extent it causes the aggregate deposit by said City in any such bank to be in excess of $15,000 shall be secured by a surety bond or beads furnished by a surety company or companies qualified or authorized to do business in Virginia or by a pledge of direct obligations or by guaranteed bonds or securities of the United States of America having a market value equivalent to such deposit. If the Council shall determine at any time that the amount of bond proceeds being held for construction costs is in excess of the amount necessary to be disbursed therefrom for the authorized pur- poses during the ensuing month, it may invest such excess in inter- est bearing bonds or other direct and general obligations of the United States of America having a maturity date or being subject to retirement at the option of the holder not more than eighteen months subsequent to the date of such investment; and all such investments, as well as all income therefrom, shall be carried to the credit of such construction fund. Any surplus remaining after accomplishing the aforesaid purposes shall be converted into the Reserve Fund. All accrued interest which may be received from the sale of any of the bonds hereby authorized shall be con- verted into said Principal and Interest Fund. Section ll. The term "independent consulting engineer or firm of consulting engineers" as used in this ordinance shall be deemed to mean the firm of Alvord, Burdick & Howson, Engineers, of Chicago, Illinois, so long as said firm is retained by said City upon terms which are satisfactory to and agreeable with said City, or otherwise any other consulting engineer or firm of con- sulting engineers of similar reputation in water system matters that may be hereafter retained by said City to act in a similar capacity. -19- Section 12. That the bonds hereby authorized be execu- ted as herein provided as soon after the adoption of this ordinance as may be, and in accordance with the provisions of Section 8.6 of Chapter 8 of the Charter of said City, the City Clerk is hereby authorized and directed to cause notice to be published in the Fairfax Herald , a newspaper published in McLean , Virginia, and having a general circulation in the City of Fairfax, and in The Daily Bond Buyer, a financial Journal published in the City of New York, New York, that at a time and place stated in such notice, which shall be the time and place of a scheduled meeting of this Council, sealed proposals will be con- sidered by this Council for the purchase of the bonds as herein authorized. Such notice shall be so published at least once not less than ten days prior to the scheduled date of sale; such notice shall be in the customary form and shall recite that no bid for less than all of said bonds nor for the purchase thereof upon terms of less than 98% of par plus accrued interest will be given favorable consideration and shall further state that the right is reserved to reject any or all bids. In addition the City Manager is hereby authorized to reply officially to any reasonable request for further information with respect to the character and security of the bonds. Section 13. That the provisions of this ordinance shall constitute a contract between said City of Fairfax and the holder or holders of the bonds herein authorized to be issued; provided that modifications or amendments of this ordinance may be made in the same manner and subject to the same conditions as set forth under Section 18 of said ordinance adopted September 3, 1958. It is hereby represented and covenanted that no such modifications or amendments to said ordinances adopted September 3, 1958 and June 8, 1965, have been heretofore made. Section l_~. IF any section· paragraph, clause or pro- vision of this ordinance shall be held to be invalid, the invalid- ity of such section· paragraph~ clause or provision shall not af- fect any of the remaining provisions of this ordinance. Section 15. All Ordinances· resolutions and orders· or parts thereof, in conflict with the provisions of this ordinance are to the extent of such conflict hereby~repealed. Section 1_~6. This ordinance shall be in full force and effect upon its adoption and approval by the Mayor. Adopted by the Council Approved May 20 Attest -. ~¢ting'~ty' Clerk ~' May 20 , 1969. · 1969. / Ma~or The above ordinance is hereby certified to and approved by me as to legality and correctness of form this 20th day of May , 1969. ~ ~Cl~ktt~orne~y~ ~ -21-