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HomeMy WebLinkAboutORD 3141' � - � �alt � ;"t�s-��`�j 7 �j , �o� . � �11. ,'� l ' l+A c� . r� , / � , . �q^ S ��� � CZTY UF I2�NTON, WASHIPdGTON ORDINANCE T10. 3141 � �,N ORDINANCE providing for the issuance of I'� $3,095,000.00 par value o� "City of Renton � Water and Sewer Revenue Refunding Bonds, 1977," for the purpose of obtaining a part of the funds with which to refund, pay and retire the out- standing "C�ty.;�:of Renton Water and Sewer Revenue Re�undi,ng F3onds, 1�76," of the City; fixing the date, form, denomination, zn,aturities, interest rates, terms and covenants of such refunding b onds; creating a special account in the bond I 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 I for and authorizing the purchase of certain obligations out of the proceeds of the sale of such refunding bonds and other moneys of the City and for the use and application o� the znoneys to be derived from such investment; providing 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 Seattle-Northwest Securities Corporation of Seattle, Washington. VdHER�AS, by Ordinance T1o. 1156, as amended by Ordinarices Nos. 1157 and 1173, the sewerage system o�' the City of Re.ntor� has become and is considered a part o� the waterworks utility of the City; and � / ' iniHEREAS, the City of Renton heretofore issued under date of March 1, 1953, $35,Q00 .00 par value of "City of Renton [ntater and Sewer Re�unding and Improvement Revenue Bonds, 1953, " I �ursuant to Ordinances Nos. 1450 and 1�52; and TnIHEREAS, 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, including the sewerage system as a part thereof, on a parity�-with the then outstanding "City of Renton [�Iater and Sewer Refunding and Improvement Revenue Bonds, 1953," on compliance with the following conditions at the time of . I the issuance of such additional bonds: � __ , � � � � � , � ,' . • � � „ _ r � . ' " (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 suf�icient, after the payment of operation and maintenance costs and taxes, based -upon the historical experience of said systems 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 ec�ual at least 1.5 times the average annual �rincipal and interest requirements of the bonds of this issue then outstanding and of the revenue bonds proposed to be so issued. Such determination o� the sufficiency of the revenues shall be rnade and certified to by an eng�,neer experienced in municipal utilities; and " (C) The Ordinance author�zing the issuance of such additional revenue bonds shall provide for the setting aside into a reserve fund or account o.f 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, v�hich reserve fund or account shall be maintained in such amount so long as any of said bonds are outstanding to the last maturity thereof" ; and WHEREAS, the City of Renton thereafter issued under date of September �., 1954, $325,0OO.OQ par value of "City of Renton Water and Sewer Revenue Bonds, 1954, " pursuant to Ordinance No. 1489 , and, under date o,f July l, 1959 , $750 ,O.QO.00 .par value o� °City of Renton Y+Ia�er and Sewer Revenue Bonds, 1959 , " pursuant to Ordinance No. 1766 , and, under date of May l, 1965, $5Q0 ,000.00 par value of "City of Renton [ni.ater and Sewer �evenue Bonds, 1965, " pursuant to Ordinance No. 2151, and, .under date of Aecember 15, 1965, $545,OU0 .00 par value o,f "City of Renton Water and Sewer Revenue Refunding Bonds, 1965, " , pursuant to Ordinance No. 2195, for the purpose of refunding, redeeming and retiring on July 1, 1974, all of the then outstanding "City of Renton Water and Sewer Revenue Bonds, 1959 ," and under date of July 1, 1975, $3 ,000 ,000 .00 par value of "City of Renton Water and Sewer Revenue Bonds, 1975, " pursuant to Ordinance No. 2930 , and under date of February 1, 1976, $'L,950 ,000.00 par value of -2- � , . . . r � ' � • t sa � � � " "City of Renton Water and Sewer Revenue Refunding Bonds, 1976," pursuant to Ordinance No. 3007, for the purpose of refunding, redeeming and retiring on January 1, 1989 , and July 1, 1989 , all of the then outstanding "City of Renton Water and Sewer Revenue �onds, 1975, " which bonds were issued . on a parity of lien with said then outstanding "City of Renton Water and Sewer Refunding and Im�rovement Revenue Bonds, 1953," and with each other pursuant to the provisions of 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 condi,tions of subparagraph �B) of said Section 15 were modified b.y Section 12 of Ordinance No. 2930 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 provided in Ordinance No. 3007 and in the � outstanding "City of Renton TnIater and Sewer Revenue Refunding Bonds, 19Z6" (hereinafter called the "197f Bonds" ) , the City reserved the ri.ght .to redeem such 1976 Bonds as a whol.e, or in part in inverse numerical order, �rom moneys derived from any source at the following percentac�es of par, if redeemed at the following times, plus accrued interest to date o� redemption in each case: � �. Call Date Call Price �., �� July 1, 1987, and January l, 1988 $101.50 July l, 1988, and January 1, 1989 101.00 July l, 1989 , and �anuary 1, 19�0 100.50 July l, 1990 , or any semiannual interest payment date thereafter 100.00 (Par) I �thich 1976 Bonds mature in various amounts on July 1 of each of the years 1977 through 2000 and bear interest at various rates from 6 .50% to 7.25% per annum; and -3- -- - - � `• � . � � , � , °• � , � . WHEREAS, after due consideration it appears to the City Counci], that all of the outstanding 1976 Bonds may be refunded by providing funds �or �he payment of the principal of and interest on such outstanding bonds until July l, 1989, at which time the remaining bonds then outstanding maturing after such date numbered 96 to 590 , inclusive, will be called, paid and retired by the �ssuance and sale of refunding bonds so that a substantial saving - _... .... �_... ._........w� _ _---- will be e�fected by the dif�erence between the principal and interest cast over the l.ife of the re�undi.ng bonds and the principal and interest cost over the life o� such outstanding 1976 Bonds; and WHEREAS, in order to ef�ect such re�unda.ng in the manner �ha�. will be most advantageous to the City and its taxpayers, it is hereby found necessary and advisable that certain "Acquixed pbligations" (hereinafter identified� be�ring interest and maturing at such time or times as necessazy to pay the principal of and interest on the 1976 Bonds as the same shall, become due and to redeem the 7.97.6 Bonds as afozesaid. be purchased out of the proceeds of the sale of the refunding bonds herein authori.zed (hereinafter called the "Refunding Bonds") and other moneys of the City legally available therefor; and WHEREAS, the City Council hereby finds that all payments required by. the zespective bond ordinances for each issue of I outstanding water and sewer revenue bonds of the CitX referred to above have been made into the respective bond redemption, funds for each issue of such outstanding bonds; that provision is hereinafter made for the transfer from the "Reserve Account" in the bond redern�tion fund for th,e outstanding 1976 Bonds to the "Reserve �ccount" in the bond redemption fund hereinafter created for the payment of the Refunding Bonds the amounts presently on hand in such 1976 "Reserve Account" less the amount therein used in con- �.ection Hrith the re�unding operation as hereinafter set forth and for the accumulation of the additional amounts required in the "Reserve Account" in the bond fund for the Re�unding Bonds; -4- 1 1 , v • � '+ , � � ! and that Mortimer H. Thomas of Gardner Engineers 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 1976 Bonds will be paid from the revenues of the combined �,aater and sewerage systems of the City, that said revenues aare suf£icient to meet the 1.5 coverage requirement and prior to the issuance and delivery of such Re�unding Bonds his certificate to such e��ect must be on �ile wa.th the City Clerk; NOW, THEREFORE, THE CI'�Y COUNCIL OF THE CITY OF RENTON, WASHINGTOIV, DO ORDAIN as �ollows: Section l. As used in this ordinance the following words shall have the following rneanings: Ca� The word "Cit�y" shall mean the City of Renton, Washington, .a duly organized and existing noncharter code city under the laws of the State of Washington. (.b) The words "Waterworks Utility of the City" shall . ' mean �he �ombined water and sewerage systems of the City as the - same may be acided to, i.mproved and extended for as long as any of the putstanding Parity Bonds, the Refunding Bonds and any Future �arity Bonds are outstanding. (c) T�e v,�ords "Qutstanding Parity Bonds° shall when used hereina�ter 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 Qrdinance No. 14 89 , the outstanding "Ci�.y of Renton Water and Sewer 12evenue Bonds, 1965," issued under date of l�lay l, 1965, pursuant to Ordinance No. 2151, the outstanding "City of Renton Water and Sewer Revenue Refunding Bonds, 1965," issued under date of December 15, .1965, pursuant to Ordinance No. 2195 , and the outstanding 1976 Bonds until the same are refunded pursuant to the provisions of this ordinance and the lien thereof defeased �ursuant to Section 13 of Ordinance No. 3007. � -5- .. . , � , , . . + (d) The words "1976 Bonds" shall mean the $2 ,950,000 .00 par value of "City of Renton Water and 5ewer Revenue Refunding �onds, 1976," issued under date of February l, 1976, pursuant to Ordinance No. 3007. (e) The words "Refunding Bonds" shall mean the "City of Renton Vdater and Sewer Revenue Refunding Bonds, 1977," authorized to be issued by this ordinance. (fj The words "Future Parity Bonds" shall, mean a7,1 �water . and sewer revenue bonds of the City issued after the date of the issuance o� the Refunding Bonds and having a lien and charge upon the gross revenues of the Waterworks Utility of the City on a �arity with the lien and charge upon such gross revenues for the Outstanding Parity Bonds and the Refunding Bonds for the payment of the principal thereof and interest thereon. (g) The words "Bond Fund" shall mean that special fund of the City known as the "Renton 1977 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 "1976 Bond Fund" shall mean the "Renton 1976 [niater and Sewer Revenue Refunding Bond Redemption Fund" created and established in the off ice of the Director of Finance of the City by Ordinance No. 3007 out of which fund the 1976 Bonds are payable. (_i� � �rhe words "Principal and Interest t�ccount" shall mean the account of that name created in the Bond Fund by this ordinance �or the payment. of the principal of and interest on the Re�unding Bonds. (�� � The words "Rese.rve Accoun,t" shall mean the account of that narne 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. -6- 1 y �: � • � , • � � � , Section 2 . For the purpose of providing a part of the moneys required to pay the principal of and interest on the 1976 Bonds coming due to and including July 1, 1989, and to redeem and retire on July l, 1989 , the outstanding 1976 Bonds numbered 96 to 590 , inclusive, maturing from July 1, 19�0, to July l, 2000, inclusive, .the City shall issue the Refunding Bonds in the aggregate princi�al amount of $3,095, 0OO .OQ. The Refunding Bonds shall be designated "CitX of Renton Water and Sewer Revenue Refunding Bonds, 1,977" (herein defined as the '"Re�unding Bonds") ; shall be dated June l, 1977; shall be i.n denominations of $5 ,0OO.OQ each; shall bear interest at the rates hereinafter set forth, payable on January 1, 1978, and semi,annually therea�ter or� the �irst days of each succeeding July 1 and January 1, interest to maturity being evidenced by coupons to be attached to the �tefunding Bonds with full obligation on the part o� the City to pay interest at the bond rate from and after the bond maturity dates unt�,l the Refunding Bonds with interest are paid in �ull or �unds sufficient to pay such Re�unding Bonds with interest in full are on deposit in the Bond Fund hereinafter referred to and the Refunding Bonds have been duly called �'or redem�tion. �he Refunding Bonds shall be numbered, shall bear i.nterest and shall mature on July 1 of each year as folloHts: Bond Numbers - _- � . znterest (Iriclusive) Amounts Rates Years 1 to 2 $ 10,000 6.00% 1981 3 to 12 50 ,000 6.00% 1982 13 to 24 60 ,000 6 .00o 1983 25 to 35 55, 000 6. 00o 1984 � 36 to 47 60 ,000 6 .00% 1985 48 to 6Q 65,000 5. 750 1986 61 to 73 65, 000 5.750 1987 74 to 86 65,000 5. 75p 1988 87 to 117 155,000 5.75% 1989 118 to 156 195,000 5. 80% 1990 157 to 198 210,000 5. 800 1991 199 to 241 215,000 5.90% 1992 242 to 287 230,000 5.90% 1993 288 to 336 ' 245,000 6. 00o 1994 337 to 388 260,000 6. 00a 1995 389 to 444 280 ,000 6.00a 1996_ 445 to 503 295,0,00 6 .00% 1997 504 to 567 320,000 �� 6.100 1998 568 to 619 260 ,000 6.100 1999 -7- .. ,.:� . � R ` � � � 3 • ` 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 State of Washington in the Cities of Seattle, Washington, or New York, New York, solely out of the Bond Fund, and shall be a valid claim of the holder thereof only as ac�ainst such Bond Fund and the amount of the revenue of the tniater�ntork,s t7tility of the City pledged to such fund, and shall not be a general obligation of the City. Section 3. The City reserves the right to redeem the Re�unding Bonds as a whole, or in part in inverse numerical order, �rom moneys derived from any source at the following percentages of par, i� redeemed at the following times , plus accrued interest to date o� redemption in each case: � Call Date Call �rice July 1, 1987, and January l, 1�88 $101. 50 July l, 1988, and January l, 1989 101. 00 July 1, .1989 , ar�d 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. Tcdritten notice shall also be given to Seattle-Northwest Securities Corporation, or its�-successor, at its principal o�fice in Seattle, Washington, within the same period. In addition, .such rec�emption notice shall also be sent to Moody's Investors Service, Inc. , and S,tandard & �oor's Corporation, ,at their offices in New York, New Xork, 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 shall cease on the date fixed for such redemption upon payment of the redemption price into the Bond Fund. -8- .�: . �' . , • , , The City reserves the right to purchase any or all of the Refunding Bonds in the open market at any time at a price not in excess of 101.50% of the par value if purchased prior to July l, 1988, and thereafter not in excess of the call price applicable at the time of such purchase. Sectiori 4. There is hereby created and established in the o�fice of the Director of Finance .of the City a special fund to be known and designated as the "Renton 1977 Water and Sewer Revenue Refunding Bond Redemption Fund" (herein defined as the "Bond �'und") , which fund is to be drawn upon for the sole purpose o� paying the principal of and interest on the Refunding Bonds from and after the date thereof. Such fund is hereby divided into t�nto. accounts., namely, a "�rincipal and Interest Account" and a "Reserve �ccount. " There is hereby also created and established in the 1976 Bond �'und an additional account to be known and designated as the "1977 Refunding Account. " Immediately upon receipt o� payment in full for the Refunding Bonds, the accrued interes.t received, if any, shaJ,l be deposited in the Principal and Interest Account in the Bond k'und. '�he principal proceeds received shall be deposited in the "1977 Refunding Account" in the 1976 Bond k'und and an amount equal to the accrued interest on the 1,976 Bonds from the last interest payment date of such 1976 B.onds to the date of delivery of the Refunding Bonds to the �urchaser thereof ($103,85$. 75� and $5,Q00.00 of accrued principal on such 1976 Bonds shall be transferred from the Principal and Interest Account in the 1976 Bond Fund to the "1977 Refunding Account" in the 1976 Bond Fund. Similarly, $112,759 .25 of moneys in the Reserve Account in the 1976 Bond Fund shall be transferred �o the "1977 Refunding Account. " The moneys in the "1977 Refunding Account" shall be used immediately upon the receipt thereof to discharge the obligations of the City under Ordinance No. 3007 passed and approved February 2, 1976, authorizing the issuance of the 1976 Bonds by providing for the payment as hereinafter set forth -9- .. �� ' . �, � � in this section of the principal of and interest on the 1976 Bonds. To the extent practicable the City shall discharge such obligations by the purchase of Farmers �ome Administration Insured Notes and United States �reasury Certi�icates of Indebtedness, Notes and Bonds -- state and local government series (commonly called "book entrX" obligations� ("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 the principal of and interest on the 1976 Bonds which will become due and payable on or before July l, 1989 , and the redemption price payable on July 1, 1989 , for the principal of the 1976 Bonds numbered 95 to 590.., 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. Such. "Acquired Obligations" and a beginning cash balance o� $109.,326. 35 shall be irrevocably deposited with Peoples National Ba,nk o� Washington, Seattle, Fdashington (hereinafter called the "Refunding Trustee") . -�-Any amounts described in this section which are not provided �or in. full by the purchase and deposit of the "Acquired Obligations" described in this section shall be proyided for by the irrevocable deposit of a portion of the proceeds o� sale of the Refunding Bonds or other moneys of the City with the a£oresaid Refunding Trustee. The beginning cash balance deposited with the Refunding �'rustee and all the moneys received as principal of and interest � on such "Acquired Obligations" shall be held by the Refunding '�rustee for the credit of the City -�for the "1977 Refunding Account" in the 1976 Bond Fund, and shall be held in trust and shall be used �or the sole purpose o� paying the principal o� and interest becoming due on the 1976 Bonds up to and including July 1, 1989 , and to pay and retire the aforesaid numbered 1976 Bonds on July l, 1989 , as herein provided. , -10- ., . � . . � , > , , Any moneys remaining in the "1977 Refunding Account" in the 1976 Bond Fund after the payment and retirement in full of the outstanding 1976 Bonds as aforesaid shall be transferred and paid into the �rincipal and Interest Account in the Bond Fund. All of such "Acquired Obligations" purchased as a part of the refunding plan are i�rrevocably dedicated. to the purpose set, .forth in this ordinance, and such investments or the earnings or the proceeds there�rom may be used for no other �urpose, nor may any of such investments be liquidated. prior to maturity. Section 5. The City hereby irrevocably calls for aredemption on July l, 19$9 , the outstanding 1976 Bonds numbered 96 to 590 , inclusive, _.at 100. 500 of the par value thereof plus accrued i.nterest to such date of redem�tion. Such call for redem�tion shall be irrevocable a�'ter the delivery o,f the Refunding BQnds to the initial purchaser thereo�. The Director o� �'inance is hereby- authorized and directed to c�ive notice of the redemption of such 1976 Bonds in accordance �tith the .�rovi�siox�s o� Ordinance No. 3007 pertaining to the 1976 Bonds. Section 6 . Trie Refundin� '�rustee is hereby. authorized and directed to pay the principal of and interest on the 1976 �.onds when due from the "Acquired Obligations" and moneys deposited � Htith the Refunding Trustee pursuant to Section 4 of this ordinance. �,11 "Acquired Obligations" and the moneys deposited with the Refunding �'rustee and any income therefrom shall be held and applied in accordance with the provisions of Ordinance No. 3007 pertaining to the 1976 Bonds and this ordinance and with the statutes o� the State of Washington. All necessary and proper fees, compensation and expenses of the Refunding Trustee for the Refunding Bonds and al1 other costs incidental to the setting up of the escrow to accomplish the refunding of the 1976 Bonds, including but not limited to an -11- ., �� ` , „ , . . allocable portion of bond counsel' s fees chargeable to such escro�z (580) and an escrow computation fee to Seattle-Northwest Securities Corporation, .shall be paid out of the principal • proceeds of the Refunding Bonds. The costs relating to the issuance an,d delivery of the Refunding Bonds, including bond printing and an allocable portion of bond counsel 's fees chargeable t,o the preparation of the legal proceedings and furnishing an approving legal opinion covering the Refunding Bonds (420) , shall b e �aid by Seattle-Northwest Securities Corporation as purchaser of the Refunding Bonds. The proper off icers and agents of the City are directed to ob tain from the Refunding Trustee an agreement setting �orth the duties , obligations and responsibilities of the Refunding Trustee in connection with the redemption and zetirement of the 1976 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 Peoples National Bank o� [niashington, Seattle, t�Iashington, an agreement substantially in the form attached hereto marked "Exhibit A" and by this reference thereto made a �art of this ordinance. Section 7. �:So long as Refunding Bonds are _outstanding 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 Waterworks Utility of the City a fixed amount, without regard to any fixed proportion, namely, monthly, on or before the first day of each month beginning with the month of July, 1977, an amount, together with the accrued interest received, equal to 1/7th of the amount of interest payable on the Refunding Bonds on January l, 1978, and thereafter 1/6th of t�he next ensuing six months ' requirements for interest and beginning -12- „ �� ' , ' ” . ' � with the month of August, 1980, 1/12th of the next ensuing twelve months ' requirements for principal on the Refunding Bonds and , continuing thereafter until the Refunding Bonds, both principal I, and interest, are paid in full. Section 8. The Director o� Finance of the City is hereby a.uthorized and directed to transfer from the Reserve Account in the 1976 Bond Fund to the Reserve Account in the Bond Fund after the transfer of moneys in. such Reserve Account to the "1977 Refunding Account" as provided in Section 4 hereof, all remaining moneys on deposit in such Reserve Account in the 1976 Bond Fund, and the Gity sha11 thereafter set aside and pay into the Reserve Account in the Bond Fund out of the gross revenues of the Waterworks Utility of the City in substantially equal monthly payments the amounts xequired to have been paid into the Reserve Account in the 1976 Bond k'und so that by no later than July l, 1980, there shall have been accumulated in the Reserve Account in the Bond Fund for the Refunding Bonds an amount not less than the average annual principal and interest requirements for the Refunding Bonds. �'he Reserve 1-�ccount in the �ond Fund may be accumulated f rom any other moneys which the City �may have available for such p urpose in addition to using such revenues therefor. The City further agrees that when said required amounts h.ave been �aid a.nto the Reserve Account in the Bond Fund, it will at all times , except for withdrawals therefrom as authorized herein, maintain those amounts therein until there is a sufficient amount in the Bond Fund, including the Reserve Account therein, to pay I the pr.incipal of and interest on all outstanding Refunding Bonds to the final maturity thereof at which tiine the moneys in the Bond k'und, .including the Reserve Account therein, may be used to pay such �rinca.pal and interest. In the event there shall be a deficiency in the Bond Fund to meet maturing installments of either principal or interest, as -13- .. V' c r � � � ` 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 f rom the moneys f rom the revenues. of the Waterworks Utility of the City first available after making necessary provisions for the required payments into the Bond �und. � All money in the Reserve Account above provided for may be kept on deposit in the o�ficial bank depository o� the City, or deposited in institutions permitted by law in an amount in each instance �ot �reater than the amount insured by any department or a�ency o� the United States Government or may be invested in United States Government obligations having a guaranteed ma�ket, or in United States obligations maturing not later than June l, 1999 . Inter.est on any such investment or on such bank account shall be de�osited in and become a part of the Reserve Account until the �otal required reserve sum shall have been accumulated t�erein, after which time such interest shall be deposited in the Principal and Interest Account. I� the City shall fail to set aside and pay into the Bond �und the _amounts which it has obligated itself by this section to set aside and pay therein, the holder o� any Refunding Bond may bring suit against the City to compel it to do so. Sectiori 9 . The revenues of the Waterworks Utility of the Gity aze hereby pledged to such payments, and the Refunding Bonds shall constitute a lien and charge upon such revenues prior and su�erior to any other charges whatsoever, excluding charges for maintenance and operation of such Waterworks Utility of the City, except that the lien and charge upon such revenues for the Refunding �onds shall be on a parity -�with the lien and charge thereon for the Qutstanding �arity Bonds and any Future Parity Bonds hereafter issued, the lien and charge upon such revenues f or the 1976 Bonds -14- '� ., v ' . , being defeased pursuant to Section 13 of Ordinance No. 3007 immediately 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 Vdaterworks Utility o� the City, at the rates to b e �harged for water and s anitazy sewage disposal service on the entire Utility, wi7.l be more than su�ficient to meet all expenses of operation and maintenance thereof and the debt service requirements of the Outstanding Parity Bonds and to permit the setting aside in �he �on,d �'und, out .of the gross revenues of the entire Utility, of a,mounts sufficient to pay the interest on the Refunding F3onds as such interest becomes payable and to pay and redeem all o� the Refunding Bonds at maturity. The City Council and corporate. authorities of the City. further hereby declare that in creating the B.ond k'und 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 Watexworks Uti,lity of the� City and the debt service requirements o� the presently Outstanding �arity Bonds, and the City has not bound and obligated itself to set .aside and pay into the Bond Fund a greater amount or proportion of the revenues. o� 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 �arity Bonds, ,and that no portion of the revenues of �he �daterworks Utility of the City has been previously pledged for any other indebtedness, except �or the payment of the pres.ently Outstanding Parity Bonds. Section 11. The City tiereby covenants and agrees with the owner and holder of each Refunding Bond at any time outstanding as follows: -15- � ., rt � - , ' ; � � (_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 will 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 a�ter 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. (b1 '�hat it will at all times maintain and keep the inlaterworks Utility of the City in good repair, working order and condition and also will at all t'imes 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 ! outstandirig, and that it will not sell, lease, I mortgage, or-��in any manner encumber or dispose o� 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 rep].acement thereof, or for payment into the Bond �'und 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 availab le for debt service for such Refunding Bonds f rom the entire Utility for the same period. Any such moneys 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 all 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 I 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 Waterworks Utility of the City and all records, accounts and data of the City relating thereto. Upon request -16- ,�. ' ,. i r � .i 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 customer whatsoever £ree o� charge and will promptly take legal action to en�orce collection of all delinquent accounts. Cf1 That it will carry the types of insurance on the Waterworks 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 o� 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 a].1 costs of rnaintenance and operation of the [niaterworks Utility of the City and I the debt service requirements for the Outstanding �ar�.ty 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 �unds 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 Boncls are issued, would have caused such Refunding Bonds to be arbitrage bonds �rithin the meaning of Section 103(c) of the Uriited States Tnternal Revenue Code of 1954 , as amended, and for this purpose it further covenants that none 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 �ursuant to and subject to the requirements and ' exceptions of Sections 1.103,13 and 1.103-14 of the regulations proposed by the United States Treasury Department pubTished in the Federal Register on May 3, 1973, December 3, 1975, October 29 , 1976, and May 31, 1977. The covenants of this section appertaining to the Refunding Bonds shall be subject to all provisions concerning payment and to all other contractual prov�.sions in the proceedings authorizing the issuance of the 1976 Bonds or otherwise appertaining thereto. Section 12:�W� The Refunding Bonds shall be substantially in the following form: -17- , r r� � ' � a ' � e NO. $�����. 00 UNITED STATES OF [�RICA STATE OF WASHINGTON CITX OF RENTON WATER AND SEWER REVENUE REFUNDING BOND, 1977 % The City of Renton, State of Washington (hereinafter called the "City" ) , �or value received promises to pay to bearer on the FIRST DAY OF JULY, 19 , the principal sum of FIVE THOUSAND DOLLARS together with interest thereon at the rate of % per annum, payable on January 1, 1978, and semiannually thereafter on the first days of each succeeding July and �7anuary, 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 ,1977 Water and Sewer Revenue Refunding Bond Redem�tion Fund" (hereinafter called the "Bond �und") for payment in full. Both principal of and interest on this bond are 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 o� the State of Washington in the Cities of Seattle, Washington, or New York, New York, solely out of the special fund created by Ordinance No. , and referred to herein as the "Bond �'und, " into which �und the City hereby irrevocably binds itsel� to pay certain fixed amounts out of the gross revenues of the waterworks utility, including the sewerage system as a part thereof, now b elonging 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 i 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 f or 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 Sewer Revenue Bonds, 1954, " the outstanding "City of Renton Water and Sewer Revenue Bonds, 1965, " and the out- standing "City of Renton Water and Sewer Revenue Refunding Bonds, 1965, " issued on a parity therewith, -18- �� 4' - , � � � � � I � 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 I of Ordinance No. . This bond is one of a total issue of $3,095,000 .00 �ar value of bonds, all of like date, tenor and effect, except as to maturities , interest rates and option of redemption, all payable fror:i the Bond Fund anci all issued by the City under and in pursuance of the laws of the State of Washington, particularly Chapter 138, �aws of 1965, lst Ex. Ses. , as amended, known as the "Refunding Bond Act" (RCW Chapter 39 .53) , for the purpose of providing a part of the funds to refund, pay and retire all of its outstanding "City of Renton TnIater and Sewer Revenue Bonds, 1976, " dated February 1, 1976, all as provided in Ordinance No. , and is issued in full compliance with the ordinances 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 o� holders of bonds of this issue. The City reserves the right to redeem the bonds of this issue as a who�.e, or in part in inverse numerical order, �rom moneys derived from any source at the follo�nting 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 $101. 50 July l, 198$, 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 shal� be given by publication thereof in the official newspaper of the City at least once not less than 3Q nor more than 45 days prior to the call date. Written notice shall also be given to the principal office of Seattle-Northwest Securities Cor�oration in Seattle, Washington, or its successor, Hrithin the same period. In acidition, such redempt'ion notice shall also be sent to Moody's Investors S�rvice, Inc. , and Standard � Poor's Corporation, at their offices in New Yor3c, New York, but the mailing o� 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 payment of the redemption price into the Bond Fund. I '�he City reserves the right to purchase any or all of the bonds in the open market at any time at a price � not ,in excess of 101. 500 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 o� each and every one of the bonds of this issue to fully carry out all covenants and meet all obligations of the City as set forth in Ordinance No. . -19- ,�. , � � , ' , 4 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 done 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 f acsimile signature of its Mayor arid attested by the manual signature of its Clerk and its corporate seal to be hereto affixed and the interest coupons attached to be signed with the facsimile signatures of said officials tlhis first day of June, 1977. CITY OF ItENTON, TniASHING'�ON By (.f acsimile signature) Mayor ATTEST: Clerk The interest coupons attached to the Refunding Bonds shall be in substantially the following form: Coupon No. _ $ (Unless the bond referred to below shall have been previously redeemed) On the FIRST DAY OF (JANUARX) (JULY) , 19 , the CITY OF REN7.'ON, WASHING�ON, 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 either 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 States of America from the special fund of the City known as the "Renton 1977 Water and Sewer Revenue Refunding Bond Redemption Fund," said sum � � being the interest then due on its "City of Renton L�later and Sewer Revenue Refunding Bond, 1977, " dated June l, 1977, and nuinbered CITY OF RENTON, WASHINGTON By (facsimile signature) �, Mayor ATTEST: (:facsimile sigriature) � Clerk -20- � �. � ` , � ` ' • _ ; The Refunding Bonds shall be printed on lithographed forms, shall be signed by the facsimile signature of the Mayar and attested by the manual signature of the Clerk and shall have the seal of the City affzxed thereta, and �he interest coupons shall bear the facsimile signatures of the Mayor and the Clerk. Section 13. In the event the City shall issue advance refunding bonds pursuant ta �he laws o� the State o� Washington, or have mane�s available from any other lawful saurce, to pay the principal o� �nd interest on the Refunding Bonds or such portion thereof included in the refunding plan as the same become due and , �ayable and to refund all such then outstanding Refunding Bonds and to �ay -�.he costs of refundi.ng, and sha11 have irrevocably set aside for and pledged to such payment and refunding, moneys and/or direct obligatians of the United States of America ar o�her legal investznents suf�icient in amaunt, together with known earned income �rom the investments thereaf, to �ake such paymen�s and ta aceomplish the refunding a� scheduled (hereinafter called the "trust account") and shall irrevocably make provision� �or redemption of such Refunding Bonds, then in that case all right and interest of the o�tners ar holders of the Refunding �3onds to be so reti.red or refunded and tY�e appur�enant coupans {hereinafter collectively called the "defeased Refunding Bonds") in the cavenants of this ordinance, in the grass revenues of the Waterwork� Utility of the City and �unds and accounts obligated ta the payment ot such Refunding �3onds shall �khereafter cease an,d became void, except such owners and holders shall have the right ta receive payment of the principal ' of and inter.est on the defeased Refunding Bonds from the trust accaunt and, a,n the event the �unds in the trust account are nat �,vailabl.e for such payment, shall have the residual right to receive payment of th� principal o� and i.nterest on the defc:ased Refunding B.onds from the gross revenues of the t�7aterworks Utility of the City without any priority of lien ar charge against those revenues or � �2�_ � � — � ;, . - . , . � _ , • covenants with respect thereto except to be paid therefrom. Af ter the establishing and full funding of such trust account, the City may then apply any moneys in any other fund or account established �or the �ayment or redem�tion of the defeased Refunding Bonds to ar�y l.awful purposes as it shall determine, subject only to the rights of the holders of any other bonds then outstanding. In the event that the refunding plan provides that the Re�'un,ding Bonds being refunded or the refunding bonds to be issued he 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 provi,des that certain cash and/or direct obligations of the tJnited States of America or other legal investments are irrevocably �ledged �or the prior redemption o� those Refunding Bonds included in the refunding plan, then only the debt service on the Refunding Bonds which are not defeased Refunding Bonds and the refunding bonds, the payment of which is not so secured by the refunding plan, shall be included in the •computation of coverage for issuance of Future Parity Bonds and the annual computation of cover.age �or determining compliance `,aith the rate covenar�ts. Sectiori 14.: The City reserves the right to issue Future �arity B,onds which will constitute a lien and charge upon the gross revenues of the Waterworks Utility of the City on a parity with the putstanding �arity Bonds and the Refunding Bonds, provided, the conditions set forth in Section 15 of Ordinance No. 1450 are met and compli,ed with at the .time of the issuance of such Future Pa-rity �onds, tirhich section is by this reference incorporated herein and made a �part hereof and shall continue to be applicable even though t,he '"City of Renton Water and Sewer Refunding and Improvement Bonds, 1953," have been paid and retired; provided, however, that after the �ayment 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. -22- L _ , } � . . , r � � � Sectiori 15. Seattle-Northwest Securities Corporati.on of Seattle,. Niashington, heretofore offered to purchase the Refunding Bonds at a price of 98p of par plus accrued interest to the date of del.ivery of the Refunding Bonds , the Gity to furnish the printed Refunding Bonds �nd the unqualified appr.oving legal opinion of N�essrs. Roberts, Shefelman, I,awrence, Gay & Moch, rnunicipal bond � counsel of Seattle, Washi.ngton, and the purchaser to pay the cost of �rinting such Refunding Bonds and an allocable portion of the cost of such legal opinion as set �orth in Section 6 above and the purchaser to provide the "Acquired Obligations" above referred to as set .�orth in such offer. The City Council, being o� the opinion that it was in the best interests of the City to accept such offer, duly�:accepted the same on June 6 , 1977, and such - a�c�ptance is hereby ratified and con�irmed. The Refunding Bonds � shall, therefore, immediately upon their execution be delivered to the purchaser upon payment �or the Refunding Bonds in accordance �rith such o�fer. 5ection 16. T�his ordinance shall be in full force and ef�ect fi,ve days from and after its passage, approval and legal publication. PASSED BY THE CITY COUNCIL, this 13th day o£ June, 1977. > �. �.��2�� I� DELORES A. .IKEAD, City �lerk I . � AP�ROVED BX THE MAYOR, this 13th day of June, 1977: C � } CHARL,�S �! DELAURENTI, Mayor �,pproved as to form; ��� ��� G�RD�M.-S�IELLAN, City Attorney Date of Publication: June 17 , 1977 -2 3- . � i � ,,t , ,� , . . .� t. I, DELORES A. MEAD, City Clerk of the City of Renton, T�Iashington, do hereby certify that the attached copy of Ordinance No. 3J�/ is a true and correct copy of the original ordinance passed on the 13th day of June, 1977, as that ordinance appears on the Minute �ook of the City. DATED this j�� day of June, 1977. �. � /'�'/.�.o� AELORES A. MEAD, Cit� Clerk �i� , ' . � � ' • •_ w • f, 0������� � i A G R E E M E P1 T THIS AGREEMENT made ancl entered into as of the day of June, 1977, by and between the CITY OF RENTON, 6VASHINGTON, a muni.cipal corporation of the State of Washington (the "City") , and �EO�'L�S NATIONAL BANK Ok' WASHING'�OTJ, Seattle, Washington (the "Refunding Trustee") ; W I T N E S S E T H: SEC3'ION l. Recitals . The City now has outstanding its "City .of Renton Water and Sewer Revenue Refunding Bonds, 1976, " issued under date of February 1, 1976, in the aggxegate principal amount o� $2 ,950,.00.0...00 (hereina�ter called the "1976 Bonds") . Pursuant to Ordinance No. 3007 pertaining to the 1976 Bonds, the C=-ty in the manner provided. therein may call the 1976 Bonds for x'edemption as a u,zhole, or in part in inverse numerical order, from moneXs derived �rom any source at the following percentages of par, i i� redeemed at the following times, plus accrued interest to date i o� redemption in each case: Call Date Call Price ►Tuly 1, 1987, and January 1, I988 �101.50 July 1, 1988, _and January 1, 1989. 1Q1.00 July l, 1989, and January 1, 1990 100.50 July 1, 1990, or any semiannual interest payment date thereafter 100.00 (Par) The City by Ordinance No. passed by the City Council and .� a�proyed by the Mayor on June 13, 1977, has determined to pay the �rinci.pal of and interest on the 1976 Bonds coming due to and including July 1, 1989 , and to redeem and retire on July l, 1989 , the outstanding 1976 Bonds numbered 96 to 590 , inclusive, maturing from July l, 1990, to July 1, 2000 , inclusive, in accordance with the terms of said Ordinance No. 3007 out of the proceeds of sale of its "City of Renton Water and Sewer Revenue Refunding Bonds, 1977" (the "Refundiny Bonds") , and other moneys of the City legally available therefor. � i � � .. - . - ,. . , � . , � , � SECTIOPI 2 . Provisions for the Paymeiit and Retirement of the 1976 Borids. To accomplish. the payment and retirement of the 1976 Bonds, including the payrnent of the principal of and interest on the 1976 Bonds coming due to and including July 1, 1989, and to redeem and retire on July 1, 1989, the outstanding 1976 Bonds numbered 96 to 590, inclusive, maturing from July 1, 1990, to July 1, 2000, a.nclusive, the City, simultaneously �ntith the delivery of the Refun.ding Bonds issued pursuant to said Ordinance No. , does hereby agree to irrevocably deposit with the Refunding Trustee in trust for the security and benefit of the holders and owners of the 1976 Bonds and the Refunding Bonds the sum of $109 ,326 .35 in cash and �'armers Home Administration Insured Notes and United States Treasury Certificates of Indebtedness, Notes and Bonds --- state and local government series (coru�only called '°book entry" obligations) with amounts, interest rates and maturities as more particularly set .forth in "Schedule A" attached to this Agreement and by this reference incorporated herein, which securities are hereinafter referred to as "Ob ligations," and such cash and Obligations, with the investment income therefron, will be sufficient to provide for the payment of the principal of and interest on the 1976 �onds coming due up to and including July 1, 1989 , and to redeem and retire on July 1, 1989 , .the outstanding 1976 Bonds numbered 96 to 590 , inc�.usive, maturing from July l, 1990 , to July I, 2000 , inclusive. On or before the delivery of the Refunding Bonds the City agrees that it will cause to be delivered to the Refunding Trustee a statement setting forth the amount of interest and principal to be paid on each semiannual interest payment clate on the 1976 Bonds up through July 1, 1989, and the amount of principal ana premium required on July 1, 1989 , to pay and redeem the outstaiiding 1976 Bonds numbered 96 to 590 , inclusive. The City by said Ordinance No. has irrevocably called for redemption or prepayment on July l, 1989 , the outstanding 1976 Bonds numbered 96 to 590 , inclusive, at 100. 500 of the par value ^2w , , , < • � , . , , � . . ' , ` thereof plus accrued interest to such date of redemption. Such call for redemption or prepayment shall be irrevocable upon the delivery o� the Refunding Bonds. The Director of Finance of the Gity shall provide for the publication and mailing of the proper notice of such redemption or prepayment in accordance with the I, applicable provisions o� Ordinance No. 3007 pertaining to the 1976 ', �onds. � Provision for the giving of such notice of redernption or I prepayment has irrevocably been made by the City. � SEC'�ION 3. Disbursements by tYie Refuriding �rustee. The Refund�.ng �rustee shall present for payment on the due date thereof , the Qbligations so deposited and shall apply the proceeds derived ' there�rom in accordance with the provisions of this section. ' Moneys shall be transferred by the Refunding Trustee to � the pirector o� �'inance of the City in amounts suf�icient to pay , �he i.nterest on and principal o� the 1�76 Bonds coming �due and �ayable on or be£ore July ]., 1989, and in amounts sufficient to pay R . on July 1, ,1989 , the redemption pri.ce with respect to outstanding ' 1976 Bonds numbered 96 to 590, ir�clus�.ve. S�C�'ION 4. Nonreinvestment of Funds; Custody and ' 5a�ekeepinc� of Obligations. Al1 moneys deposited titith the Refunding Trustee or received by the Refunding .Trustee as maturing principal or interest on Obligations prior to the time required to make the �aXments hereinbefore set forth shal.l be held by the Refunding Trustee and shall not be reinvested. All income derived from the Obligations and any moneys deposited with the Refunding lrustee pursuant to Section 2 hereof in the hands of the Refunding Trustee (which moneys are not required to make the payments herei.nbefore required to be made) shall be paid I to the Director o�' Finance of the City for the credit of the "1977 � Re�unding �ccount" in the "Renton 1976 [�Iater and Sewer Revenue Bond Fund" of the City (hereinafter called the "Refunding Account") as -3- ; � ' , . - • , . , . � � M ♦ � y � Y . and when realized and collected for use and application as other moneys deposited in said Refunding Account. For as long as any of the 1976 Bonds are outstanding, on , or before the lOtii day of each month, commencing with the rnonth of August, 1977, the Refunding Trustee shall render a stateinent as of the last day of the prececling 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 reason of such maturity and the interest income received, the amounts paid to such Director of Finance for credit to the Refunding Account and the dates of such payraents for the payment of the interest on . and principal of the 1976 Bonds as the sarne shall become due and/or payable, .the final payment of the redemption price for 1976 �onds numbered 96 to 590 , inclusive, on July 1, 1989, and any other trans- actions of the Refunding Trustee pertaining to its duties and obligatians as set forth herein. All Ob ligations, moneys and investrnent income depositecl. with or received by the Refunding �'rustee pursuant to this Agreement shall be subject to the trust created by this Agreerlent and the Refunding Trustee shall be liable for the preservation and safekeeping thereof. Re�erence herein to payments made to the Director of Finarice of the City shall also be deemed to include payments made to the fiscal agency of the State of ��ashington on behalf of such Director of Finance. SEGTION 5. Duties and Ob ligations of Refunding 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 and obligations as specifically set forth herein and to act in good �aith in the performance thereof and no implied duties or obligations shaYl be incurred by such Refunding Trustee other than those '� specified herein. -4- '� 1 + ' � � . ,,, ' .►' �. � � ` � � • • . � .' r � ti r I �, i The R�funding Trustee may consult wi.th coun�el of its choice and �.he opinian of such counsel shall be full and camplete authorzzatzon and protection in respect o� any action t�aken or not taken or su�f�red by it hereunder i.n goad faith and in accardance �ntith the opi.na.on of such counsel, Provisians far the fee�, compensa�.ion and expenses of the Re�unding �ru�tee satis�actory to it have been made. CZTX OF RENTOIV, �`ZAS�iINGTON - i 8��� C��i'' `_�� � , �- �.. � ��°� ,ATT�ST:. Ci�y Clerk i F. � ll �'�OPS.��S NATIOT+�AL �ANK C)F WASHIIJGTON '� I By . . �'rust Officer , I � _�,_ r . � . � �� . ' r , . , _ .,.. _. _ _ _� � _ - - � r� . ` , � ` . ,'♦ SGHEDULE A CITY OF RENTON ACQUIRED OBLIGATIONS Interest Amount Rate Descriptian Maturity $2,355,000 7.30% BE 7-1-89 50,000 0 BE ?-i-89 7,000 0 BE 1-1-89 35,000 0 BE 7-1-88 7,000 0 BE 1-1-88 3Z,000 0 BE , 7-1-87 9,000 0 BE 1-1-87 �^ 38,OOQ 0 BE 7-1-86 11,000 ' 0 BE 1-1-86 34,000 0 BE 7-1-85 13,000 � 0 BE 1-1-85 30,000 0 BE 7-1-84 14,000 0 BE 1-1-84 36,OOQ 0 BE 7-1-83 15,000 0 8E 1-1-83 33,000 0 BE 7-1-82 16,000 0 BE 1-1-82 34,000 0 BE 7-1-81 17,000 0 BE I-1-81 - 5,000 � 0 BE 7-1-80 17,000 0 BE 1-1-80 9,000 0 BE 7-1-79 18,000 0 BE 1-1-79 5,000 0 BE 7-1-78 17,000 0 BE 1-1=78 �200,000 9.00% FHDA 4-23-89 �, CODE: BE - U. S. Treasury - State and Local Government Series II Certificates of Indebtedness. FHDA - Farmers No�ne Administration - Department of Agriculture Insured Notes.