HomeMy WebLinkAboutORD 3007 >
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CITY OF RENTON, WASHINGTON
ORDITJANCE NO. 3007
Av ORDINANCE providing for the issuance and
sale of $2,950,000.C}0 par value of "City of Renton
Water and Sewer Revenue Refunding Bonds, 1976 ,"
, for the purpose of obtaining a part of the funds
with which to refund, pay and retire on January l,
1g89 , and July 1, 1989 , the outstanding "City of
Renton 4,7ater and Sewer Revenue Bonds, 1975," of
the City; fixing the date, form, denomination,
maturities, interest rates , terms and covenants
of such refunding bonds; creating a special
account in the bond redemption fund of the bonds
being refunded to provide for the refunding
operation;• creating a special bond redemption fund
to provide for the payment of the refunding bonds;
providing for and authorizing the purchase of
certain obligations out of the proceeds of the
�� �ale of such refunding bonds and other moneys of
the City and for the use and application of the
moneys to be derived from such investment; provid- �
ing for the payment and redemption of the
outstanding bonds to be refunded; and confirming
the sale and providing for the delivery of the
refunding bonds to SeattZe-Northwest Securities
Corporation of Seattle, Washington.
WHEREAS, by Ordinance No. 1156 , as amended by Ordinances
Nos. 1157 and 1173, the seweraqe system of the City of Renton has
become and is considered a part of tlze waterworks utility of the
C i ty; and
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WHEREAS, the City of Renton heretofore issued under
date of March l, 1953, $35,000.00 par value of "City of Renton
UJater and Sewer Refunding and Improvement Revenue Bonds, 1953,"
pursuant to Ordinances Nos. 1450 and 1452; and
WHEREAS, by Section 15 of said Ordinance No. 1450, the
City of Renton reserved the right to issue additional water and
sewer revenue bonds, which would constitute a charge and lien upon
the revenues of the waterworks utility, incluaing the sewerage system
as a part thereof, on a parity with the then outstanding "City of
Renton Water and Sewer Refunding and Improvement Revenue Boiids,
1953," on compliance with the following conditions at the time of
the issuance of such additional bonds:
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" (A) All payments required by this ordinance to
be paid into the 'Renton 1953 Water and Sewer ,
Refunding and Improvement Revenue Bond Fund' shall
have been made; and
" (B) The revenues of said waterworks system,
including the sewerage system, shall be and be
deemed sufficient, after the payment of operation
and maintenance costs and taxes, based upon the
historical experience of said systens or the pro
forma revenues under then existing rates over a
period of any twenty-four consecutive months out
of the thirty-six months immediately preceding the
time of the issuance of such additional bonds, to
' equal at least 1. 5 times the average annual
rinci 1 a
a nd interest re uirements of t
P P q he bonds
of this issue then outstanding and of the revenue
bonds proposed to be so issued. Such determination
of the sufficiency of the revenues shall be made and
certified to by an engineer experienced in municipal
utilities; and
" (C) The Ordinance authorizing the issuance of
such additional revenue bonds shall provide for the
setting aside into a reserve fund or account of an
amount not less than the average annual debt service
requirement, both principal and interest of the
additional revenue bonds proposed to be so issued, .
which reserve fund or account shall be maintained
in such amount so long as any of said bonds are
outstanding to tYie last maturity thereof" ;
and
WHEREAS, the City of Renton thereafter issued under date of
September 1, 1954, �325,�O�.Q4 par value of "City of Renton Water
and Sewer R e "
ev nue Bonds, 1954 ursuant to Ordinance No. 1489 and
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under date of July 1, 1959 , $750 ,000.00 par value of "City of Renton
Water and Sewer Revenue Bonds, 19.59 , " pursuant to Ordinance No. 1766 ,
and, under date of May l, 19.65, $SQO ,OOO.QO par value of "City of
Renton Water and Sewe_r Revenue Bonds, 1965, " pursuant to Ordinance
No. 2151, and, under date of December 15, 1965, $545 ,000.00 par value
of "City of Renton Water and Sewer Revenue Refunding Bonds, 1965, "
pursuant to Ordinance No. 21.95, for the purpose of refunding, redeeming
and retiring on Ju1y 1, 1974 , all of the then outstanding "City of
Renton Water and Sewer Revenue }3onds , 1959 , " and under date of
July 1, 1975, $3,000, 000.00 par value of "City of Renton Water and
Sewer Revenue Sonds, 1975, " pursuant to Ordinance No. 2930, which
bonds were issued on a parity of lien with said then outstanding
"City of Reriton tnTater and Sewer Refunding and Improvement Revenue
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Bonds, 1953, " and with each other pursuant to the provisions of
I Section 15 of said Ordinance No. 1450, said parity issues of bonds
being a first lien and charge upon the gross revenues from the
combined water and sewerage systems of the City, excluding charges
for maintenance and operation, except that all of said "City of
Renton Water and Sewer Refunding and Improvement Revenue Bonds,
1953," have now been paid and retired, and except the conditions of
subparagraph �B� of said Section 15 were modified by Section 12 of
Ordinance No. 293Q pertaining to the outstanding "City of Renton
Water and Sewer Revenue Bonds, 1975, " as to any parity bonds issued
in the future; and
WHEREAS, as prouided in Ordinance No. 2930 and in the
outstanding "City of Renton Wlater and Sewer Revenue Bonds, 1975"
(_hereinafter called the "1975 Bonds"� , the City reserved the right
to redeem such 1975 Bonds as a whole, or in part in inverse numerical
order, from moneys derived from any source at the following I
percentages of par, if redeemed at the following times, plus accrued I
interest to date of redemption in each case: '
Call Date Call Price
July l, 1987, and January 1, 1988 $101. 50
July l, 1988, and January l, 1989 101.00
July 1, 1989, and January 1, 1990 100.50
July 1, 1990 , or any semiannual interest
payment date thereafter 100.00 (Par)
which 1975 Bonds mature in various amounts on July 1 of each of the
years 1981 through 2000 and bear interest at various rates from 6. 50%
to 7.50o per annum; and
WHEREAS, after due consideration it appears to the City
Council that all of the outstanding 1975 Bonds may be refunded by
providing funds for the payment of the principal of and interest on
such outstanding bonds until January 1, 1989 , at which time the
remaining bonds then outstanding numbered 35a to 600 , inclusive,
will be called, paid and retired and until July l, 1989, at which
time the remaining bonds then outstanding numbered 75 to 357,
inclusive, wi11 be called, paid and retired by the issuance and sale I
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, af refunding bonds so that a substantial saving will be effected
by the difference between the principal. and interest cost over the
life of the refunding bonds and the principal and interest cost over
the life of such outstanding 1975 Bonds; and I
WHEREAS, in order to effect such refunding in the manner I
that will be most advantageous to the City and its taxpayers, it is
hereby found necessary and advisable that certain "Acquired Obligations"
(hereinafter identified� bearing interest and maturing at such tirne
or times as necessary to pay the principal of and interest on the
1975 Bonds as the same shall. become due and to redeem the 1975 Bonds
as aforesaid be purchased out of the proceeds of the sale of the
refunding bonds herein authorized (hereinafter called the "Refunding
Bonds") and other moneys of the City legally available therefor; and
WHEREAS, the City Council hereby finds tha� all payments
required by the res�ective bond ordinances for each issue of
, outstanding water and sewer revenue bonds of the City referred to
above have been made into the respective bond redemption funds for
each issue of such outstanding bonds; tk�at pravision is hereinafter
made for the transfer from the "Reserve Account" in the bond redemption
fund for the outstanding 1975 Bonds to the "Reserve Account" in the
bond redemption fund hereinafter created for the payment of the
Refunding Bonds the amounts presently on hand in such 1975 "Reserve
Account" and for the accumulation of the additional amounts rec�uired
� in the "Reserve Account" in the bond fund for the Refunding Bonds;
i and that Marvin stock , P. E, of CH2M fiill Inc. , an
engineer experienced in municipal utilities, will certify, after
taking into consideration the fact that after the issuance of the
Refunding Bonds no debt service on the 1975 Bonds will be paid from
the revenues of the combined water and sewerage systems of the City,
that said revenues are sufficient to meet the 1. 5 coverage requirement
and pri.or to the issuance and delivery of such Refunding Bonds his
certifica.te to such effect must be on file with the City Clerk; NOW,
THEREFORE,
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BE IT ORDAINED BY THE MAYOR AND CITY COUIQCIL OF THE CITY
OF RENTON, WASHINGTON, as follows: I��
Section 1. As used in this ordinance the following
words shall have the following meanings:
(a) The word "City" shall mean the City of Renton,
Washington, a duly organized and existing noncharter code city
under the laws of the State of �raashington.
(b) The words "Waterworks Utility of the City" shall mean
the combined water and sewerage systems of the City as the same may
be added to, improved and extended for as long as any of the
Outstanding Parity Bonds, the Refunding Bonds and any Future Parity
Bonds are outstanding.
(c), The words "Outstanding Parity Bonds" shall when used
hereinafter be deemed to collectively include all of the outstanding
"City of Renton Water and Sewer Revenue Bonds, 1954 ," issued under
date of September 1, 1954, pursuant to Ordinance No. 1489, the
outstanding "City of Renton Water and Sewer Revenue Bonds, 1965,"
issued under date of May l, 1965, pursuant to Ordinance No. 2151,
the outstanding "City of Renton Water and Sewer Revenue Refunding
Bonds, 1�65, " issued under date of December 15 , 1965, pursuant to
Ordinance P1o. 2195, and the outstanding 1975 Bonds until the same are
refunded pursuant to the provisions of this ordinance and the lien
thereof defeased pursuant to Section 11 of Ordinance No. 2930.
�d�_ The words "1975 Bonds" shall mean the $3,000,000. 00
par value of "City of Renton Water and Sewer Revenue Bonds, 1975, "
issued under date� of July l, 1975, pursuant to Ordinance No. 2930.
(e) The words "Refunding Bonds" shall mean the "City of
Renton Water and Sewer Revenue Refunding Bonds, 1976," authorized to
be issued by this ordinance.
(f) The words "Future Parity Bonds" shall mean all water ',
and sewer revenue bonds of the City issued after the date of the
issuance of the Refunding Bonds and having a lien and charge upon
the gross revenues of the Waterworks Utility of the City on a parity
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with the lien and charge upon such gross revenues for the Outstanding
Parity Bonds and the Refunding Bond� for the payment of the principal
thereof and interest thereon.
(_g) The words "Bond Fund" shall mean that special fund
of the City kriown as the "Renton 1976 Water and Sewer Revenue
Refunding Bond Redemption Fund" created by this ordinance for the
payment of the principal of and interest on the Refunding Bonds.
(h) The words "1975 Bond Fund" shall mean the "Renton
1975 Water and Sewer Revenue Bond Fund" created and established in
the office of the Director of Finance of the City by Ordinance No.
2930 out of which fund the 1975 Bonds are payable.
(i) The words "Principal and Interest Account" shall mean
the account of that name created in the Bond Fund by this ordinance
for the payment of the principal of and interest on the Refunding
Bonds.
(j) The words "Reserve �,ccount" shall mean the account
of that name created in the Bond Fund by this ordinance for the
purpose of securing the payment of the principal of and interest on
. the Refunding Bonds.
Section 2. For the purpose of providing a part of the
moneys required to pay the principal of and interest on the 1975 Bonds
coming due to and including January 1, 1989, and to redeem and retire
on January l, 1989, the outstanding 1975 Bonds numbered 358 to 600,
inclusive, maturing from July l, 1997, to July l, 2000, inclusive,
and on July 1, 1989, the outstanding 1975 Bonds numbered 75 to 357,
inclusive, maturing July 1, 1990, to July 1, 1996, inclusive, the
City shall issue the Refunding Bonds in the aggregate principal amount
of $2 ,95Q,OOO.QO.
The Refunding Bonds shall be designated "City of Renton
Water and Sewer Revenue Refunaing Bonds, 1976" (herein defined as
the "Refunding Bonds"�. ; shall be dated February l, 1976; shall be
in denominations of $5,000 .00 each; shall bear interest at the rates
hereinafter set forth, payable on July l, 1976 , and semiannually
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thereafter on the first days of January and July of each year,
interest to maturity being evidenced by coupons to be attached to
the Refunding Bonds with full obligation on the part of the City to I
pay interest at the bond rate from and after the bond maturity dates
until the Refunding Bonds with interest are paid in full or funds
sufficient to pay such Refunding Bonds with interest in full are
on deposit in the Bond Fund hereinafter referred to and the Refunding
Bonds have been duly called for redemption. The Refunding Bonds shall
be numbered, shall bear interest and sha11 mature on July 1 of each
year as follows:
Bond Numbers Interest
(Inclusive) Amounts Rates Years
1 $ S,OOQ 6.500 1977
2 5,000 6.50% 1978
3 to 4 10,Q00 6.5Qo 1979
5 5,000 6.50% 1980
6 to 12 35,000 6.500 1981
13 to 19 35,000 6.50% 1982
20 to 27 40,000 6 .75% 1983
. 28 to 34 35,000 6. 75% 1984
35 to 42 40 ,000 6.75% 1985
43 to 51 45,000 6.75% 1986
52 to 6U 45,000 6.750 1987
61 to 69 45,000 6. i5% 1988
70 to 95 130 ,000 6. 750 1989
96 to 129 170,000 6.80% 1990
130 to 166 185,000 6.900 1991
167 to 205 195,OOQ 7.00o 1992
206 to 247 21Q ,000 7. 00% 1993
248 to 292 225,000 7.10a 1994
293 to 340 240,000 7.10% 19y5
341 to 392 260,000 7.20% 1996
393 to 448 28Q,000 7.20% 1997
449 to 509 305,000 7.20% 1998
510 to 575 330,OOQ 7.250 1999
576 to 590 75,OOQ 7.25% 2000
Both principal of and interest on the Refunding Bonds shall
be payable in lawful money of the United States of America at the
office of the Director of Finance of the City, or, at the option of
the holder, at either fiscal agency of the 5tate of Washington in the
Cities of Seattle, Washington, or New York, New York, solely out of
the nond Fund, and shall be a valid claim of Lhe holder thereof only
as against such Bond Fund and the amount of the revenue of the
Waterworks Utility of the City pledged to such fund, and shall not
be a general obligation of the City.
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, , Section 3. The City reserves the right to redeem the
Refunding Bonds as a whole, or in part in inverse numerical order,
from moneys c�erived from any source at the following percentages of
par, if redeemed at the following times, plus accrued interest to
date of redemption in each case:
Call Date Call Price '
July 1, 1987, and January 1, 1988 $101. 50
Ju1y 1, 1988 , and January 1, 1.989 101.00
Ju1y l, 1989 , and January 1, 1990 100. 50
July 1, 1990, or any semiannual interest
payment date thereafter 100.00 (Par)
Notice of such intended redemption shall be given by
publication thereof in the official newspaper of the City at least
once not less than 30 nor more than 45 days prior to the call date.
Written notice shall also be given to Seattle-Northwest Securities i
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Corporation, or its successor, at its principal office in Seattle, ;
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Washington, within the same period. In addition, such redemption
notice shall also be sent to Moody's Investors Service, Inc. , and
Standard & Poor's Corporation, at their offices in New York, New
York, but the mailing of such notice to such corporations shall not
be a condition precedent to the redemption of such Refunding Bonds.
Interest on any Refunding Bonds so called for redemption '
i shall cease on the date fixed for such redemption upon payment of �
the redemption price into the Bond Fund. '
The City reserves the right to purchase any or all of the
Refundin.g Bonds in the open market at any time at a price not in
excess of 101.5Qo of the par value if purchased prior to July 1,
1988, and thereafter not in excess of the call price applicable at
the ti.me of such purchase.
Section 4. There is hereby created and established in the
office of the Director of Finance of the City a special fund to be
known and designated as the "Renton 1976 Water and Sewer Revenue
Refunding Bond Redemption Fund" (herein defined as the "Bond Fund")
which fund is to be drawn upon for the sole purpose of paying the
principal of and interest on the Refunding Bonds from and after the �
date thereof. 5uch fund is hereby divided into two accounts, namely,
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� a "Principal and Interest Account" and a "Reserve Account. " There
� is hereby also created and established in zhe 1975 Bond Fund an
additional account to be known and designated as the "1976 Refunding
Account. " Ir.lmediately upon receipt of payment in full for the
Refunding Bonds, the accrued interest received, if any, shall be
deposited in the Principal and Interest Account in the Bond Fund.
The principal proceeds received shall be deposited in the "1976
Refunding Account" in the 1975 Bond Fund and an amount equal to the
accrued interest on the 1975 Bonds from the last interest payment
date of such 1975 Bonds to the date of delivery of the Refunding
Bonds to the purchaser thereof shall be transferred from the Principal
and Interest Account in the 1975 Bond Fund to the "1976 Refunding
Account" in the 1975 Bond Fund. The moneys in the "1976 Refunding
Account" sha11 be used immediately upon the receipt thereof to
discharge the obligations of the City under Ordinance No. 2930
passed and approved May 5, 1975, authorizing the issuance of the
1975 Bonds by providing for the payment as hereinafter set forth
in this section of the principal of and interest on the 1975 Bonds.
To the extent practicable the City shall discharge such obligations
by the purchase of Farmers Home Administration Insured Notes
�"Acquired Obligations") bearing such interest and maturing as to
principal and interest in such amounts and at such times so as to
provide for the payment of th.e principal of and interest on the
1975 Bonds which will become due and payable on or before January l,
1989, and the redemption price payable on January 1, 1989 , for the
principal of the 1975 Bonds numbered 358 to 600, inclusive, and
until 3uly 1, 1989, and the redemption price payable on July 1, 1989,
for the 1975 Bonds numbered 75 to 357, inclusive. Such "Acquired
Obligations" and the prices to be paid for the same are more
particularly described in the proposal of Seattle-Northwest
Securities Corporation hereinafter referred to.
5uch "Acquired Obligations" shall be irrevocably deposited
with Rainier National Bank, Seattle, Washington (hereinafter called
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the "Refunding Trustee") . Any amounts described in this section
which are not provided for in full by the purchase and deposit of
the "Acquired Obligations" described in this section shall be provided
for by the irrevocable deposit of a portion of the proceeds of sale
of the Refunding Bonds or other moneys of the City with the aforesaid
Refunding Trustee.
All the moneys received as principal of or interest on
such "Acquired Obligations" shall be held by the Refunding Trustee
for the credit of the City for the "1976 Refunding Account" in the
1975 Band Fund, and shall be held in trust and shall be used for the
sole purpose of paying the principal of and interest becoming due on
the 1975 Bonds up to and including July l, 1989, and to pay and
retire said 1975 Bonds on January l, 1989 , and July l, 19�9, as �
aforesaid.
Any moneys remaining in the "1976 Refunding Account" in
the 1975 Bond Fund after the payment and retirement in full of the
outstanding 1975 Bonds as aforesaid shall be tran�ferred and paid
into the Principal and Interest Account in the Bond Fund. All of
such "Acquired Obligations" purchased as a part of the refunding
plan are irrevocably dedicated to the purpose set forth in this
ordinance, and such investments or the earnings or the proceeds
therefrom may be used for no other purpose, nor rnay any of such �I
investments be liquidated prior to maturity.
Section 5. The City hereby irrevocably calls for redemption
on January l, 1989, the outstanding 1975 Bonds numbered 358 to 600,
inclusive, at 101% of the par value thereof plus accrued interest
to such date of redemption and on July l, 1989, the outstanding 1975
Bonds numbered 75 to 357, inclusive, at 100.500 of the par value
thereof plus accrued interest to such date of redemption. Such calls
for redemption shall be irrevocable after the delivery of the
Refunding Bonds to the initial purchaser thereof.
The Director of Finance is hereby authorized and directed
to give notice of the redemption of the 1975 Bonds in accordance
with the provisions of Ordinance No. 2930 pertaining to the 1975 Bonds.
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Section 6. The Refunding Trustee is hereby authorized and i
� directed to pay the principal of and interest on the 1975 F3onds when ;
due from the "Acquired Obligations" and moneys deposited with the
Refunding Trustee pursuant to Section 4 of this ordinance. All
"Acquired Obligations" and the moneys deposited with the Refunding
Trustee and any income therefrom shall be held and applied in accordance '
with the provisions of Ordinance No. 2930 pertaining to the 1975
Bonds and this ordinance and with the statutes of the State of
Washington. 'I
All necessary and proper fees, compensation and expenses
of the Refunding Trustee for the Refunding Bonds and all other costs
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incidental to the refunding of the 1975 Bonds, including but not I
limited to reasonable charges of bond counsel, rating services and
bond printing, shall be paid when due by the initial purchaser of
the Refunding Bonds. The proper officers and agents of the City are
directed to obtain from the Refunding Trustee an agreement setting k
forth the duties, obligations and responsibilities of the Refunding
Trustee in connection with the redemption and retirement of the '
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1975 Bonds as provided herein and stating that such provisions and
the payment of the fees, compensation and expenses of such Refunding
Trustee are satisfactory to it.
In order to carry out the purposes of this ordinance, the
Mayor and City Clerk of the City are authorized and directed to
execute and deliver to Rainier National Bank, Seattle, V�ashington,
an agreement substantially in the form attached hereto marked
"Exhibit A" and by this reference thereto made a part of this
ordinance.
5ection 7. So long as Refunding Bonds are outstanding
I against the Bond Fund, the Director of Finance of the City shall
set aside and pay into the Principal and Interest Account in such
fund out of the gross revenues of the 6Vaterworks Utility of the City
a fixed amount, without regard to any fixed proportion, namely,
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In the event there sha11 be a deficiency in the Bond Fund
to meet maturing installments of either principal or interest, as
the case may be, on the Refunding Bonds, such deficiency shall be
made up from the Reserve Account by the withdrawal of cash therefrom
for that purpose. Any deficiency created in the Reserve Account by
reason of any such withdrawal shall then be made up from the moneys
from the revenues of the Waterworks Utility of the City first available
after making necessary provisions for the required payrients into the
Bond Fund.
All money in the Reserve Account above provided for may be
kept on deposit in the official bank depository of the City, or
deposited in institutions permitted by law in an amount in each
instance not greater than the amount insured by any department or
agency of the United States Government or rnay be invested in United
States Government obligations having a guaranteed marYet, or in
United States obligations maturing not later than June l, 2000.
Tnterest on any such investment or on such bank account shall be
deposited in and become a part of the Reserve Account until the total
required reserve sum shall have been accumulated therein, after
which tirne such interest shall be deposited in the Principal and
Interest Account.
If the City shall fail to set aside and pay into the Bond
Fund the amounts which it has obligated itself by this section to
set aside and pay therein, the holder of any Refunding Bond may bring
suit against the City to compel it to do so.
Section 9. The revenues of the �aaterworks Utility of the
City are hereby pledged to such payments, and the Refunding Bonds
shall constitute a lien and charge upon such revenues prior and
superior to any other charges whatsoever, excluding charges for
maintenance and operation of such Waterv,�orks Utility of the City,
except that the lien and charge upon such revenues for the Refunding
Bonds shall be on a parity with the lien and charge thereon for the
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Outstanding Parity �onds and any Future Parity Bonds hereafter
issued, the lien and charge upon such revenues for the 1975 Bonds
bein defeased ursuant to Section ii of Ordinance No. 2930
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imrnediately upon deposit with the Refunding Trustee of the money
and "Acquired Obligations" as herein provided. �
Section 10. In the judgment of the City Council, the
gross revenues and benefits to be derived from the operation and
maintenance of the Waterworks Utility of the City, at the rates to
be charged for water and sanitary sewage disposal service on the
entire Utility, will be more than sufficient to meet all expenses of I
operation and maintenance thereof and the debt service requirements �
of the Outstanding Parity Bonds and to permit the setti�g aside in
the Bond Fund, out of the gross revenues of the entire Utility, of
amounts sufficient to pay the interest on the Refunding Bonds as such
interest becomes payable and to pay and redeem all of the Refunding
Bonds at maturity. The City Council and corporate authorities of
the City further hereby declare that in creating the Bond Fund and
in fixing the amounts to be paid into the same, as aforesaid, they
have exercised due regard for the cost of operation and maintenance
of the Waterworks Utility of the City and the debt service requirements
of the presently Outstanding Parity Bonds, and the City lias not
bound and obligated itself to set aside and pay into the Bond Fund
a greater amount or proportion of the revenues of the said Utility
than in the judgment of the City Council will be available over and
above such cost of maintenance and operation and debt service
requirements of said Outstanding Parity Bonds, and that no portion i
of the revenues of the Waterworks Utility of the City has been
previously pledged for any other indebtedness, except for the payment
� of the presently Outstanding Parity Bonds.
Section 11. The City hereby covenants and agrees with
the owner and holder of each Refundi.ng Bond at any time outstanding
as follows:
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(a) That it will establish, maintain and collect
such rates and charges for water and sanitary
sewage disposal service so long as any Refunding
Bonds are outstanding as wi11 make available for
the payment of the principal of and interest on
such Refunding Bonds an amount equivalent to at
least 1. 5 times the average annual debt service
requirements, both principal and interest, of the
Refunding Bonds and the Outstanding Parity Bonds
after deducting costs of maintenance and operation
from the gross revenues of the Waterworks Utility
of the City; provided, however, that after the
payment and retirement of all Outstanding Parity
Bonds the 1. 5 coverage requirement may be reduced
to a 1. 3 coverage requirement.
(b) That it will at all times maintain and keep
the Waterworks Utility of the City in good repair,
working order and condition and also will at all
times operate such Utility and the business in
connection therewith in an efficient manner and at
a reasonable cost.
(c) That it will not sell, lease, mortgage or in
any manner encumber or dispose of all the property
of the Waterworks Utility of the City unless
provision is made for payment into the Bond Fund
of a sum sufficient to pay the principal of and
interest on all Refunding Bonds at any time
outstanding, and that it will not sell, lease,
mortgage, or in any manner encuniber or dispose of
any part of the property of said Waterworks Utility
of the City that is used, useful and material to
the operation thereof, unless provision is made for
replacement thereof, or for payment into the Bond
Fund of the total amount of revenue received which
shall not be less than an amount which shall bear
the same ratio to the amount of the outstanding
Refunding Bonds as the revenue available for debt
service for such outstanding Refunding Bonds for the
twelve months preceding such sale, lease, encumbrance
or disposal from the portion of the Utility sold,
leased, encumbered or disposed of bears to the revenue
available for debt service for such Refunding Bonds
from the entire Utility for the same period. Any such
f morieys so paid into the Bond Fund shall be used to
retire such outstanding Refunding Bonds at the earliest
possible date.
(d) That it will while any of the Refunding Bonds
remain outstanding keep proper and separate accounts
and records in which complete and separate entries
shall be made of al1 transactions relating to the
Waterworks Utility of the City, and it will furnish
the original purchaser or purchasers of the Refunding
Bonds or any subsequent holder or holders thereof at
the written request of such holder or holders complete
operating and income statements of said Utility in
reasonable detail covering any calendar year not more
than ninety days after the close of such calendar year
and it will grant any holder or holders of at least
twenty-five percent of the outstanding Refunding Bonds
the right at all reasonable times to inspect the entire
Vdaterworks Utility of the City and all records, accounts
and data of the City relating thereto. Upon request
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, of any holder of any of said Refunding Bonds, it
will also furnish to such holder a copy of the
most recently completed audit of the City' s accounts
by the State Auditor of Washington.
(e) That it will not furnish water or sanitary
sewage disposal service to any custorier whatsoever
free of charge and will promptly take legal action i
to enforce collection of all delinquent accounts.
(f) That it will carry the types of insurance on
the vdate�works Utility of the City properties in the
amounts normally carried by private water and sewer
� companies engaged in the operation of water and
sewerage systems, and the cost of such insurance
shall be considered a part of operating and maintaining
said Utility. If, as, and when, United States of
America or some agency thereof shall provide for War
Risk Insurance, the City further agrees to take out
and maintain such insurance on all or such portions
of said system on which such War Risk Insurance may
be written in an amount or amounts to cover adequately
the value thereof.
(g) That it will pay all costs of maintenance and
operation of the Waterworks Utility of the City and
the debt service requirements for the Outstanding
Parity Bonds and otherwise meet the obligations of
the City as herein set forth.
�h) That it will make no use of the proceeds of
the Refunding Bonds or other funds of the City at any
time during the term of the Refunding Bonds which, if
such use had been reasonably expected at the date that
the Refunding Bonds are issued, would have caused such
Refunding Bonds to be arbitrage bonds within the meaning
of Section 103 (d)_ of the United States Internal Revenue
Code of 19.54, and for this purpose it further covenants
that rione of the proceeds of the Refunding Bonds or the
investment of such proceeds will be used to acquire
obligations the adjusted yield on which will exceed the
. adjusted yield produced by the Refunding Bonds, both
such adjusted yields being computed pursuant and subject
to the requirements and exceptions of Sections 1.103-13
and 1.103-14 of the regulations of the United States
Treasury Department published in the Federal Register
on May 3, �1973 and December 3, 1975.
Section 12. The Refunding Bonds shall be substantially
in the following form:
No. $5, 000 .00
UNITED STATES OF AMERICA
STATE OF WASHINGTON
CITY OF RENTON
WATER AND SEWER REVENUE REFUNDING BOND, 1976
%
KNOU7 ALL MEN BY THESE PRESENTS : That the City
of Renton, State of Washington (hereinafter called �
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the "City") , for value received promises to pay to
bearer on the FIRST DAY OF JULY, , the principal ��
sum of
FIVE THOUSAND DOLLARS
together with interest thereon at the rate of %
per annum, payable on July l, 1976, and semiannually
thereafter on the first days of January and July of
each year, upon presentation and surrender of the
attached interest coupons as they severally mature up
to the bond maturity date and with full obligation on
the part of the City to pay interest at the same rate
from and after the bond maturity date until this bond
with interest is paid in full, or funds are available
in the "Renton 1976 Water and Sewer Revenue Refunding j
Bond Redemption Fund" (hereinafter called the "Bond
Fund") for payment in full. Both principal of and
interest on this bond are payable in lawful money of
the Unitecl States of Arnerica at the office of the
Director of Finance of the City, or, at the option
of the holder, at either fiscal agency of the State
of Washington in the Cities of Seattle, VJashington, or
New York, New York, solely out of the special fund
created by Ordinance No. , and referred to herein
as the "Bond Fund, " into which fund the City hereby
irrevocably binds itself to pay certain fixed amounts
out of the gross revenues of the waterworks utility,
including the sewerage system as a part thereof, now
belonging to or which may hereafter belong to the City,
including all additions, extensions and betterments
thereof now or at any time made or constructed, without
regard to any fixed proportion, namely, amounts
sufficient to pay the principal of and interest on this
issue of bonds as they respectively become due and to
accumulate a reserve, all at the times and in the manner
set forth in Ordinance No. .
The gross revenues from the combined water and
sewerage systems, comprising the waterworks utility
of the City, are hereby pledged to such payment and
the bonds of this issue constitute a lien and charge
upon such revenues prior and superior to any other
charges whatsoever, excluding charges for maintenance
and operation, except that the lien and charge upon
said revenues for this issue of bonds shall be on
a parity with the lien and charge upon such revenues
, for the outstanding "City of Renton Water and 5ewer
Revenue Bonds, 1954," the outstanding "City of Renton �
Water and 5ewer Revenue Bonds, 1965, " and the out-
standing "City of Renton L�later and Sewer Revenue
Refunding Bonds, 1965, " issued on a parity therewith,
and any other additional water and sewer revenue bonds
. hereafter issued on a parity with said issues of
bonds, in accordance with the provisions of Section
_ 14 of Ordinance No. .
This bond is one of a total issue of $2, 950,000.00
par value of bonds, all of like date, tenor and effect,
, except as to maturities, interest rates and option of
redemption, all payable from the Bond Fund and all
issued by the City under and in pursuance of the laws
of the State of Washington, particularly Chapter 138,
Laws of 1965, lst Ex. Ses. , as amended, known as the
"Refunding Bond Act" (RCW Chapter 39.53) , for the
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� purpose of providing the funds to refund; pay and
retire all of its outstanding "City of Renton Water
and Sewer Revenue Bonds, 1975, " datea July l, 1975,
all as provided in Ordinance No. , and is
issued in fu11 com liance with the ord'
p inances of the
City and the Constitution and laws of the State of
Washington. Reference is made to Ordinance No.
as more fully describing the covenants with and
rights of hvlders of bonds of this issue.
The City reserves the right to redeem the bonds of
I this issue as a whole, or in part in inverse numerical
order, from moneys derived from any source at the
following percentages of par, if redeemed at the I
following times, plus accrued interest to date of
redemption in each case:
Call Date . Call Price
July 1, 1987, and January l, 1988 $101. 50
July l, 1988, and January l, 1989 101.00
July l, 1989 , and January l, 1990 100.50
July 1, 1990, or any semiannual
interest payment date thereafter 100.00 (Par)
Notice of such intended redemption shall be given by
� publication thereof in the official newspaper of the
City at least once not less than 30 nor more than 45
days prior to the call date. Written notice shall also
be given to the principal office of Seattle-Northwest
Securities Corporation in Seattle, Washington, or its
successor, within the same period. In addition, such
redemption notice shall also be sent to Moody's Investors
Service, Inc. , and Standard & Poor' s Corporation, at
their offices in New York, New York, but the mailing
of such notice to such corporations shall not be a
condition precedent to the redemption of such bonds.
Interest on any bonds so called for redemption shall
cease on the date fixed for such redemption upon
payrient of the redemption price into the Bond Fund.
The City reserves the right to purchase any or all
of the bonds in the open inarket at any time at a price
not in excess of 101. 50% of the par value if purchased
prior to July 1, 1988, and thereafter not in excess of
the call price applicable at the time of such purchase.
The City hereby covenants and agrees with the holders
of each and every one of the bonds of this issue to
fully carry out alI covenants and meet all obligations
of the City as set forth in Ordinance No. .
It is hereby certified and declared that the bonds
of this issue are issued pursuant to and in strict
compliance with the Constitution and laws of the State
of Washington and the ordinances of the City, and that
all acts, conditions and things required to be c�one
precedent to and in the issuance of this bond have
happened, have been done and have been performed as
required by law.
IN WITNESS WHEREOF, the City has caused this bond
to be signed by the facsimile signature of its Mayor
and attested by the manual signature of its Clerk and
its corporate seal to be hereto affixed and the
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interest coupons attached to be signed with the
facsimile signatures of said officials this first day
of February, 1976. �
CI^lY OF RENTON, WASHINGTON
By (facsimile signature)
Mayor �
ATTEST:
Clerk
Tne interest coupons attached to the Refunding Bonds shall
be in substantially the following form:
Coupon No.
$
On the FIRST DAY OF (JANUARY) (JULY) , , the CITY
OF RENTON, WASHINGTON, upon presentation and surrender
of this coupon will pay to bearer at the office of the
' Director of Finance of the City, or, at the option of
' the holder, at eitner fiscal agency of the State of
Washington in the Cities of Seattle, Washington, or
New York, New York, the sum shown hereon in lawful
money of the United 5tates of America from the special �
fund of the City, known as the "Renton 1976 Water and
SeFiaer Revenue Refunding Bond Redemption Fund," said sum
Y�eing the interest then due on its "City of Renton
Water and Sewer Revenue Refunding Bond, 1976 ," dated
February 1, 1976 , and numbered
CITY OF RETdTON, WASHINGTON I
By �facsimile signature) '
Mayor
ATTEST:
, ' . (_facsimile signat����)
Clerk
�he Refunding Bonds shall be printed on lithograpned forms,
shall be signed by the facsimile signature of the Mayor and attested
by the manual signature of the Clerk and shall have the seal of the
City aff�ed thereto, and the interest coupons shall bear the
facsimile signatures of the Mayor and the Clerk.
5ection 13. In the event the City shall issue advance
refunding bonds pursuant to the laws of the State of Washington to
pay the principal of and interest on the Refunding Bonds or such I
portion thereof included in the refunding plan as the same become I
due and payable and to refund all such then outstanding Refunding
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Bonds and to pay the cost of refunding, and shall have irrevocably
set aside for and pledged to such payment and refunding, moneys
and/or direct obligations of the United States of America or other
legal investments sufficient in amount, together with known earned I
income from the investment thereof, to make such payments and to
accomplish the refunding as scheduled, and shall irrevocably make
provisions for redemption of such Refunding Bonds, then in that case
all right and interest of the owners or holders of the Refunding
Bonds to be so retired or refunded and the appurtenant coupons in
the covenants of this ordinance and in the gross revenues of the
Waterworks Utility of the City, funds and accounts obligated to tlie
payment of such Refunding Bonds, except the right to receive the
funds so set aside and pledged, shall thereupon cease and become
void and the City may then apply any moneys in any fund or account
establi.shed for the payment or redemption of such Refunding Bonds
or coupons to any lawful purposes as it shall ctetermine.
In the event that the refunding plan provides that the
refunding bonds be secured by cash and/or direct obligations of the
United States of America or other legal investments pending the
prior redemption of those Refunding Bonds being refunded, and if
such refunding plan also provides that certain cash and/or direct
obligations of the United States of America or other legal investments
are irrevocably pledged for the prior redemption of those Refunding
Bonds included in the refunding plan, then only the debt service on
the Refunding Bonds and the refunding bonds payable from the gross
revenues of the Waterworks Utility of the City shall be included in
.
the computation of coverage for determining compliance with the rate
covenants.
Section 14. The City reserves the right to issue Future
Parity Bonds which will constitute a lien and charge upon the gross
revenues of the Waterworks Utility of the City on a parity with the
Outstanding Parity Bonds and the Refunding Bonds, provided, the
conditions set forth in Section 15 of Ordinance No. 1450 are met and
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complied with at the time of the issuance of such Future Parity
Bonds, which section is by this reference incarporated herein and
made a part hereof and shall continue to be applicable even though
the "City of Renton Water and Sewer Refunding and Improvement Bonds, I
1953," have been paid and retired; provided, however, that after
the payment and retirement of all Outstanding Parity Bonds the 1.5
coverage requirement to be met for the issuance of Future Parity
Bonds may be reduced to a 1. 3 coverage requirement.
Section 15. Seattle-Northwest Securities Corporation
of Seattle, Washington, heretofore offered to purchase the Refunding
Bonds at a price of par plus accrued interest to the date of delivery
of the Refunding Bonds, the City to furnish the printed Refunding
Bonds and the unqualified approving legal opinion of Messrs. Roberts,
5hefelman, Lawrence, Gay & Moch, municipal bond counsel of Seattle,
Washington, and the purchaser to pay the cost of printing such
Refunding Bonds and the cost of such legal opinion and the purchaser
to provide the "Acquired Obligations" above referred to as set forth
in such offer. The City Council, being of the opinion that it was
in the best interests of the City to accept such offer, duly accepted
the same on January 19 , 1976 , and such acceptance is hereby ratified
and confirmed. The Refuncling Bonds shall, therefore, irunediately
upon their execution be delivered to the purchaser upon payment for
the Refunding Bonds in accordance with such offer.
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SeGt 'ion 16. This ordinance shall be in full force and I
effect five days �rom and after its passage, approval and legal
publication..
PASSED BY THE CITY COUNCIL, this 2nd day of February, 1976 .
�. rn.�l��..
DELORES A. MEAU, City Clerk
APPRQVED BY THE MAYOR, this 2nd day of February, 1976.
J�� �
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t"'"'�HARLES �c7 f DELAURENTI, Mayor
�
A roved as ��o form;
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GE�RD M. SH�LLAN, Ci"'�y Attorney
Date of Publication; 2-6-76
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A G. R � E M E N T
� THIS AGREEMEtJT made and entered into as of the day
of February, 1976, by and between the CITY OF RENT.OPJ, WASHIt3GTON, a
municipal corporation of the State of Washington (the "City") , arid
RAINIER .NATIONAL BANK, Seattle, PJashington (the "Refunding Trustee") ;
W I T N E S S E T H:
SECTION 1. Recitals. The City now has outstanding its
"City of Renton Water and Sewer Revenue Bonds, 1975," issued under
date of July 1, 1975, in the agc���gate princi�al amount of
$3,OOQ,Q00. �0 (hereinafter called the "1975 Bonds") . Pursuant to
Ordinance No. 2930 pertaining to the Z375 �3onds, the City in the
manner provided therein may call the 1975 Bonds for redernption as
a whole, or in part in inverse numerical order, from moneys derived
fram any source at the follo�airig percentages of par, if redeemed at
the follo�zing times, plus accrued interest to date Qf redemption in
��c�z c�se:
Call Date Call Price
� July 1� 1987, and January 1, 1988 $101. 50
July 1, 1988, and January 1, 1989 101. 00
July 1, 1989 , and January 1, 1990 100. 50
July l, 1990, or any semiannual interest
payment date thereafter 100.00 tPar)
The City by Ordinance rdo. , passed by the City Council and
approved by the Mayor on February 2, 1976, has determined to pay
i the principal of and interest on the I975 Bonds coming due to and ,.
including January 1, Z989 , and to redeem and retire on January 1,
1989, the outstanding 1975 Bonds numbered 358 to 600, inclusive,
maturing from July 1, 1997, to July 1, 2000 , inclusive, and on
July l, 19$9, the principa� of and interest on the outstanding 1975
Bonds numbered 75 to 357, inclusive, maturing July 1, 1990, to July
1, 1996, inclusive, in accordance with the terms of said Ordinance
No. 2930 out of the proceeds of sa1.e of its "Water and Sewer Revenue
Refunding Bonds, 1976" (the "Refunding Bonds"} , and other moneys of
the City legally available therefor.
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. 5ECTION 2. Provisions for the .Pa�rment and Retirement of
the 1975 I3onds. To accomplish the payment and retirement of the
1975 Bonds, including the payment of the principal of and interest
on the 1975 Bonds coming due to and including January 1, 1989, and to
redeem and retire on January 1, 1989 , the outstanding 1975 I3onds
numbered 358 to 600, inclusive, maturing from July 1, 1997, to July I,
2Q00, inclusive, and on July 1, 1989 , the principal of and interest
on the outstanding 1975 Bonds nuribered 75 to 357, inclusive, maturing
July 1, 199Q, to July 1, 1996, inClusive, the City, simultaneously
with the delivery of the Refunding Bonds issued pursuant to said
Ordinance P1o. , does hereby agree to irrevocably deposit with
the Refunding Trustee in trust for the security ar.d benefit of the
holders and owners- of the Outstanding Bonds and the Refunding Bonds
the sum of $2,178. 75 in cash from the proceeds of sale of the
Refunding Bonds and Farmers Home Administration Insured P�otes with .
amounts, interest rates and maturities as more particularly set forth
' in "Schedule A" attached to this Agreement and by this reference
incorp�rat$d herein, ��rhich securities ar� hereinafLer re�erred ta as
"Obl.igations," . and such cash and Obligations, with the investment
income therefrom, will be sufficient to provide for the payment of
the principal of and interest on the 1975 Bonds coming due up to
and in.cluding January 1, 1989 , and to redeem and retire on January l,
1989 � the outstanding 1975 Bonds numbered 358 to 600, inclusive,
maturing from July 1, 1997, to July 1, 2000, inclusive, and on July 1,
1989 , the principal of and interest on the outstanding 1975 Bonds
numbered 75 to 357, inclusive, maturing July 1, 1990, to July 1,
1996, inclusive.
On or befor� the delivery of the Refunding Bonds the City
agrees that it will cause to be delivered to the Refunding Trustee
a statemer.t setting forth the amount of interest and principal to be
paid on each semiannual interest payment date on the I975 Bonds up
through January 1, 1989 , the amount of principal required on January ,
1, 1989 , to pay and redeem the outstanding 1975 Bonds numbc�red 358 to
600, inclusive, and the amount of interest and principal required on I'
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July l, 1989, to pay and redeem the outstanding 1975 Bonds nurnbered
, .
75 to 357, inclusive.
The City by said Orclinance No. has irrevocably called
_ for redemption or prepayment on January 1, 1989, the outstanding 1975
Bonds numbered 358 to 600, inclusive, at 101� of the par value thereof
plus accrued interest to such date of redemption and on July 1, 1989,
the ou�standing 1975 Bonds numbered 75 to 357, inclusive, at 100.500
of the par value thereof plus accrued interest to such date of
�
redemption. Such call.s for redemption or prepayment shall be
irrevocabI.e upon the delivery of the Refunding Bonds. The Director
of Finance of the City shall provide for the publication and mailing
of the proper notices of such redemption or prepayment in accordance
with the applicable provisions of Ordinance No. :29�0 pertaining to
the 1975 Bonds.
Provision for the giving of such notices of redemption or
prepayrtent has irrevocably been made by the City.
SECTIOTd 3. Disbursements hy the Refunding Trustee. The
Refunding Trustee shall present for payment on the due date thereof
the Obligations so deposited and shall app1X the proceeds derived
therefrom in accordance with the pravisions of this section.
• Moneys shall be transferred by the Refunding Trustee to
the Director of Finance of the City in amounts sufficient to pay the
interest on and principal of the 1975 Bonds coming due and payable
on or before January 1, i989 , and in amounts sufficient to pay on
January 1, 1989, the redemption price with respect to outstanding
' 1975 Bonds numbered 358 to 600 , inclusive, and to pay on July 1, 1989,
the interest and the redemption price with respect to outstanding
1975 Bonds numbered 75 to 357, inclusive.
SECTION 4. Nonreinvestment of Funds; Custody and
Safekeeping of Obligations. All moneys deposited with the Refunding
Trustee or received by the Refunding �i'rustee as maturing principai
or interest on Obligations prior to the time required to make the
payments hereinbefore set forth sha11. be held by the Refunding
Trustee and shall not be reinvested.
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All income derived from the Obligations and any moneys
' � deposited with the Refunding Trustee pursuan� to Section 2 hereof
in the hands of the Refunding Trustee (which moneys are not required
to make the payments hereinbefore required to be made) shall be paid
to the Director of Finance of the City for the �credit of the "1976
Kerunding Account" in the "Renton 1975 Water and Sewer Revenue Bond
Fund" of the City (hereinafter called the "Refunding Account") as
and wben realized and collected for use and application as other
moneys deposited in said Refunding Account.
, For as long as any of the 1975 Bonds are outstanding, on
or before the lOth day of each month, commencing with the rnonth of
April, 1976, the Refunding Trustee shall render a statenent as of
the last day of the preceding month to the Director of Finance of
the City, which statement shall set forth the Obligations which have
' matured and the amounts received by the Refunding Trustee by re�son
of such maturity, the amounts paid to such Treasurer for credit to
� the Refunding Account and the dates of such delivery for the payment
of the interest on and principal of the 1975 Bonds as �he same shali
become due and/or payable, the final payment of the redemption price
�or 19.75 Bonds numbered 358 to 600, inclusive, on January 1, ?989,
� the final payment of the redemption price for 1975 Bonds nurtbered
75 ta 357, inclusive, on July l, 1989, and any other transactions of
� the Refunding Trustee pertaining to its duties and obligations as set
forth herein. . -
All Obligations, moneys and investment income deposited
with. or received by the Refunding Trustee pursuant to this Agreement '
shall be subject to the trust created by this Agreement and the
Refunding Trustee shall be liable for the preservation and safekeeping
thereof.
Reference herein to payments made to the Director of Finance
of the City shall also be deemed to include payments made to the fiscal
agency of the State of Washington on betialf of such Director of
Finance.
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� . , SECTION 5. Duties and Obliqations of Refundiilg Trustee.
The duties and obligations of the Refunding Trustee shall be as
- prescribed by the provisions of this Agreement, and the Refunding
Trustee shall not be liable except for the performance of its duties
� a*��a t►�,i;�a�i�n� �� spo`; �;,..,, , L �..vL,. �._�__ � L_ � • , -
.r��....��� :��... y....�..aa it�'.iG11t aiiu �t� a�;�. irl c30Vu
faith in the performance thereof and no implied duties or obligations
shall be incurred by such Refunding Trustee other than those specified
herein.
The Refunding Trustee may consult with counsel of its
choice and the opinion of such counsel shall be full and complete
authorizati.on and protection in respect of any action taken or not
taken or suffered by it hereunder in good faith and in accordance
wizh the opinion or such counsel.
Provisions for the fees, compensation and expenses of the _
Refundin Trustee satisfactor to it have been made.
J Y �
CITY OF RENTOPJ, WASHINGTOi1
• By _
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Mayor
ATTEST: �
City Clerk � .
RAIPdIER NATIONAL BANK
BY
Trust C?fficer �
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�. .. EXHIBI7 A
_ . ,.
CITY OF RENTON
Acquired Obligations �
Securities Used to Fund Escrow
Amount Interest Rate Description P�Iaturity Date
$1 ,525,000 9.00% FHDA 4-23-89
1 ,325,000 7.75% FHDA 12-2F3-88
CODE:
FHDA - Farmer's Home Administration - Department of Agriculture
Insured PJotes
Any Government Obligation qualified under RCW 39.53.010, as amended, may be
substituted at time of closing for any or the above securities not avai'lable
at time of closing, provided sucn substiiute� o�ligation sha71 provide the
identical yield specified for the substituted security. . .
�_,� .. _.._. ...�- --___--_. . _ _ _. �:_ , ._ ,. _. .-,--_ .. . - �� - e ��--�
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•
I� DELOI2ES A. MEAD, City Clerk of the City of Renton,
Washington, do hereby certify that the attached copy of Ordinarice
No. 3007 is a true and correct copy of the original ordinance
passed on the 2nc1 day of February, 1976 , as that ordinance appears
on the b7inute Book of the City.
DATED this ,,3RD day of February, 1976 .
c.1. /!�/
DELOR�:S A. MEAv, Cit� Clerk