Loading...
HomeMy WebLinkAboutORD 4068 r � � ,� � Amends Ordinance No. 2020 � . � 4�-m�-� b� C��D��E�S�� '- ��it�, CITY OF RENTON, WASHINGTON ORDINANCE N0. 4068 AN ORDINANCE relating to the waterworks utility of the City, including the sewerage system as a part thereof; amending Ordinance No . 2020; specifying and adopting a system or plan of additions to and better- ments and extensions of the waterworks utility; providing for the issuance of $3, 375, 000 par value of Water and Sewer Revenue Bonds , 1987, of the City for the purpose of obtaining a part of the funds with which to pay the cost of carrying out that system or plan; fixing the date, form, denomination, maturi- ties, maximum interest rate, terms and covenants of such bonds; creating a special bond redemption account to provide for the payment of the bonds; and providing for the sale of such bonds . WHEREAS, by Ordinance No . 1156, as amended by Ordinances Nos . 1157 and 1173 , the sewerage system of the City of Renton (the "City" ) has become and is considered a part of the water- works utility of the City (defined below as the "Waterworks Utility of the City" ) ; and WHEREAS, by Ordinance No . 2020 the system of storm or surface water sewers was determined to consist as a part of the sewerage system and, together with the sewerage system, combined with the Waterworks Utility of the City; and WHEREAS, by Section 2 of Ordinance No . 2020 the City provided (in accordance with the then limitations of RCW 35 . 67 . 192 , which was subsequently repealed by Chapter 110 , Laws of 1965) that no charges for storm or surface water removal should be made to pay principal of and interest on bonds issued to provide funds to pay part or all of the cost of acquiring, constructing or installing storm or surface water sewers; and T � l 1 �' ORDINANCE N0. 4068 � r � WHEREAS, the City previously has issued $315, 000 par value of City of Renton Water and Sewer Refunding and Improvement Revenue Bonds , 1953 (the "1953 Bonds" ) , dated March 1, 1953 , pursuant to Ordinances Nos . 1450 and 1452 ; and WHEREAS, by Section 15 of Ordinance No . 1450 , the City reserved the right to issue additional water and sewer revenue bonds which would constitute a charge and lien upon the revenue of the Waterworks Utility of the City on a parity with the 1953 Bonds on compliance at the time of the issuance of such addi- tional bonds with the following conditions : " (A) All payments required by this ordinance to be paid into the ' Renton 1953 Water and Sewer Refund- ing 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 histori- cal 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 equal at least 1 . 5 times the average annual principal and interest requirements of the bonds of this issue then out- standing 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 out- standinq to the last maturity thereof" ; and - 2 - i r � . ORDINANCE N0. 4068 x . WHEREAS, the City thereafter issued $325 , 000 par value of Water and Sewer Revenue Bonds , 1954 , dated September l, 1954 , pursuant to Ordinance No . 1489 (the " 1954 Bonds" ) ; $750 , 000 par value of Water and Sewer Revenue Bonds , 1959 , dated July 1, 1959 , pursuant to Ordinance No . 1766 (the " 1959 Bonds" ) ; $500, 000 par value of Water and Sewer Revenue Bonds, 1965 , dated May l, 1965, pursuant to Ordinance No . 2151 (the " 1965 Bonds" ) ; $545 , 000 par value of Water and Sewer Revenue Refunding Bonds , 1965, dated December 15 , 1965 , pursuant to Ordinance No . 2195 ("the 1965 Refunding Bonds" ) , for the purpose of refunding, redeeming and retiring on July l, 1974 , all of the then out- standing 1959 Bonds ; $3 , 000, 000 par value of Water and Sewer Revenue Bonds, 1975 , dated July 1, 1975 , pursuant to Ordinance No . 2930 (the "1975 Bonds" ) ; $2 , 950 , 000 par value of Water and Sewer Revenue Refunding Bonds , 1976, dated February l, 1976, pursuant to Ordinance No . 3007 (the "1976 Bonds" ) , for the purpose of refunding, redeeming and retirinq on January l, 1989 , and July l, 1989 , all of the then outstanding 1975 Bonds ; $3 , 095, 000 par value of Water and Sewer Revenue Refunding Bonds , 1977, dated June 1, 1977, pursuant to Ordinance No . 3141, as amended by Ordinance No . 3145 (the " 1977 Bonds" ) , for the purpose of providing a part of the money required to pay the principal of and interest on the 1976 Bonds coming due to and including July l, 1989 , and to redeem and retire on July l, 1989, the outstanding 1976 Bonds numbered 96 to 590, inclusive, maturing from July 1, 1990, to July l, 2000, inclusive; and - 3 - , , , . ORDINANCE NO. 4068 $800 , 000 par value of Water and Sewer Revenue Refunding Bonds , 1977, Issue No. 2 , dated November l, 1977 , pursuant to Ordinance No . 3169 (the "1977 Bonds, Issue No . 2" ) , for the purpose of obtaining a part of the funds with which to refund, pay and retire the outstanding 1954 Bonds , 1965 Bonds and 1965 Refunding Bonds , all of which bonds at the time of their issuance were issued on a parity of lien with the then outstanding 1953 Bonds and with each other pursuant to the provisions of Section 15 of Ordinance No . 1450, such parity issues of bonds beinq a first lien and charge upon the gross revenue of the Waterworks Utility of the City, excluding charges for maintenance and operation, except that all of the 1953 Bonds have now been paid and retired, and except the conditions of subparagraph (B) of Section 15 of Ordinance No . 1450 were modified by Section 12 of Ordinance No . 2930 pertaining to the 1975 Bonds, and by Section 13 of Ordinance No . 3169 pertaining to the outstanding 1977 Bonds , Issue No . 2 , as to any parity bonds issued in the future, and the City, by Section 13 of Ordinance No . 3169 , reserved the right to issue Future Parity Bonds (as therein defined) which will constitute a lien and charge upon the qross revenue of the Waterworks Utility of the City on a parity with the 1977 Bonds , Issue No . 2 , if the conditions set forth in Section 15 of Ordinance No . 1450, as modified, are met and complied with at the time of the issuance of such Future Parity Bonds , which section was incorporated by reference in Ordinance No . 3169 and - 4 - ` ORDINANCE NO. 4068 made a part thereof and shall continue to be applicable even though the 1953 Bonds have been paid and retired; and WHEREAS, the City issued $3 , 045 , 000 par value of Water and Sewer Revenue Refunding Bonds , 1977, Issue No . 3 , dated December l, 1977, pursuant to Ordinance No . 3188 (the "1977 Bonds , Issue No . 3" ) , for the purpose of obtaining a part of the funds with which to refund, pay and retire all of the then outstanding 1977 Bonds; $1, 500 , 000 par value of Water and Sewer Revenue Bonds, 1983 , dated May l, 1983 , pursuant to Ordinance No . 3720 (the "1983 Bonds" ) , for the purpose of carrying out a system or plan of additions to and betterments and extensions of the Waterworks Utility of the City; $2 , 600, 000 par value of Water and Sewer Revenue Bonds , 1985, dated April l, 1985 , pursuant to Ordinance No . 3896 (the "1985 Bonds" ) , for the purpose of carrying out a system or plan of additions to and betterments and extensions of the Waterworks Utility of the City; $1, 800, 000 par value of Water and Sewer Revenue Bonds, 1986 , dated February 1, 1986 , pursuant to Ordinance No . 3970 (the " 1986 Bonds" ) , for the purpose of carrying out a system or plan of additions to and betterments and extensions of the Waterworks Utility of the City, which 1977 Bonds, Issue No . 3 , 1983 Bonds , 1985 Bonds and 1986 Bonds were issued on a parity of lien with the outstanding 1977 Bonds, Issue No . 2 , pursuant to the provisions of Section 15 of Ordinance No . 1450, as modified by Section 13 of Ordinance No . 3169 and, with respect to the 1985 Bonds and 1986 Bonds , as modified by Section 12 of Ordinance No . 3720 ; and - 5 - v 1 ' , • ORDINANCE NO. 4068 WHEREAS, the 1977 Bonds, Issue No . 2 , the 1977 Bonds, Issue No . 3 , the 1983 Bonds, the 1985 Bonds and the 1986 Bonds are the only bonds presently outstanding payable out of the revenue of the Waterworks Utility of the City; and WHEREAS, the parity provisions of Section 15 of Ordinance No . 1450, as modified by Section 13 of Ordinance No . 3169 and Section 12 of Ordinance No . 3720 , provide that the City may issue additional water and sewer revenue bonds which will constitute a charge and lien upon the revenue of the Waterworks Utility of the City on a parity with the 1977 Bonds , Issue No . 2 , the 1977 Bonds, Issue No . 3 , the 1983 Bonds , the 1985 Bonds, the 1986 Bonds and any bonds issued thereafter and having a charge and lien upon the revenue of the Waterworks Utility of the City on a parity with such bonds on compliance at the time of the issuance of such additional bonds with the following conditions : " (A) All payments required by any ordinance to be paid into any bond redemption funds and accounts thereof created to secure the payment of bonds issued on a parity of lien herewith shall have been made into the respective bond redemption funds and accounts thereof for the payment of such bonds and no deficiency exists therein; 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 histori- cal 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 equal at least 1 .3 times the average annual principal and interest - 6 - , . ORDINANCE N0. 4068 4 • requirements of the bonds of this issue then out- standing 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 lonq as any of said bonds are out- standing to the last maturity thereof" ; and WHEREAS, on June 11, 1984 , the City Council passed and the Mayor approved Resolutions Nos . 2546 and 2547 adopting the 1983 Comprehensive Sanitary Sewer Plan and 1983 Comprehensive Water System Plan, respectively, for the City, but for the purpose of financing facilities in those plans it is necessary to specify and adopt them by ordinance; and WHEREAS, the City Council has determined that it is neces- sary and in the best interests of the City that certain addi- tional improvements described in the 1983 Comprehensive Water System Plan, 1983, be made and there be adopted a system or plan of additions to and betterments and extensions of the Waterworks Utility of the City; and WHEREAS, the City Council has determined that it is neces- sary to issue and sell $3 , 375, 000 par value of water and sewer revenue bonds to provide a part of the funds necessary to carry out such system or plan providing for additions to and better- ments and extensions of the Waterworks Utility of the City and - 7 - , ORDINANCE N0. 4068 to pay the costs of issuance and sale of the water and sewer revenue bonds provided for herein; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO ORDAIN, as follows : SECTION I . As used in this ordinance, the following words shall have the following meanings : "Annual Debt Service" for the Bonds shall mean all the interest plus all principal which will mature or come due in any year . "Average Annual Debt Service" shall mean the sum of the Annual Debt Service for the remaining years to the last sched- uled maturity of the Bonds divided by the number of those years . "Bond Fund" shall mean that special fund of the City known as the 1987 Water and Sewer Revenue Bond Redemption Account created by this ordinance as a separate account in the Water and Sewer Revenue Parity Bond Fund for the payment of the principal of and interest on the Bonds . "Bond Registrar" shall mean the fiscal agencies of the State of Washington in Seattle, Washington, and New York, New York, as the same shall be designated from time to time . "Bonds" shall mean the $3 ,375, 000 par value City of Renton Water and Sewer Revenue Bonds, 1987, authorized to be issued by this ordinance. "City" shall mean the City of Renton, Washington, a duly organized and legally existing noncharter code city under the laws of the State of Washinqton. - 8 - ORDINANCE NO. 4068 "Future Parity Bonds" shall mean all water and sewer revenue bonds of the City issued after the date of the issuance of the Bonds and having a lien and charge upon the Revenue of the Waterworks Utility of the City on a parity with the lien and charge upon such Revenue for the payment of the principal of and interest on the Outstanding Parity Bonds and the Bonds . "Maintenance and Operation Expense" shall mean all expenses incurred by the City in causing the Waterworks Utility of the City to be operated and maintained in good repair, working order and condition, which shall not include any depreciation expenses or taxes or charges in lieu of taxes levied or imposed by the City. "Outstanding Parity Bonds" shall mean the 1977 Bonds , Issue No . 2 , the 1977 Bonds , Issue No . 3 , the 1983 Bonds , the 1985 Bonds and the 1986 Bonds . "Principal and Interest Account" shall mean the subaccount of that name created in the Bond Fund by this ordinance for the payment of the principal of and interest on the Bonds . "Reserve Account" shall mean the subaccount 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 Bonds . "Revenue of the Waterworks Utility of the City" shall mean all the earnings and revenue received by the Waterworks Utility of the City from any source whatsoever, including payments received under contract with other municipal corporations for - 9 - ORDINANCE NO. 4068 water service, except general taxes, charqes in lieu of taxes , assessments in any utility local improvement district hereafter created, proceeds from the sale of City property, bond proceeds and earnings subject to a federal tax or rebate requirement . "Term Bonds" shall mean any Outstanding Parity Bonds , Bonds and/or Future Parity Bonds identified as such in the ordinance authorizing the issuance thereof , the payment of which is provided for by a requirement for mandatory deposits of money into the principal and interest account of the bond redemption fund created for the payment of such issue of bonds in accord- ance with a mandatory sinking fund requirement . "Water and Sewer Revenue Parity Bond Fund" shall mean the fund of that name created by Ordinance No . 3896 . "Waterworks Utility Fund of the City" shall mean that special fund of the City into which all of the Revenue of the Waterworks Utility of the City (except for earnings in any special fund for the redemption of revenue obligations of the Waterworks Utility) shall be deposited. "Waterworks Utility of the City" shall mean the combined water and sewerage systems, including the storm and surface water sewers, of the City as the same may be added to, improved and extended for as long as any of the Outstanding Parity Bonds , the Bonds and any Future Parity Bonds are outstanding . SECTION II . Section II of Ordinance No . 2020 is amended to read as follows : - 10 - . ORDINANCE N0. 4068 SECTION II . The City Council finds that the acquisition, construction, installation, maintenance, conduct and operation of the storm or surface water sewers are necessary for the proper and efficient operation of a system of sanitary sewerage disposal . The City of Renton ' s sewerage system is hereby determined to consist of the combined sanitary sewage disposal and storm or surface water sewers , pursuant to RCW 35 . 67. 010 , together with all additions , extensions and betterments thereto and the same are made and confirmed as a part of the City' s municipal water system so that the City' s water and sewage funds be consolidated and combined into one fund to be known hereafter as the Waterworks Utility Fund, but separate and distinct subsidiary records shall be kept at all times for cost or statistical purposes between such funds, and the existing sewerage system, as hereinabove defined, including all addi- tions, extensions and betterments thereto, including all reve- nues derived therefrom, shall be and become a part of such Waterworks Utility. SECTION III . The City specifies, adopts and orders the carrying out of a system or plan of additions to and betterments and extensions of the Waterworks Utility of the City consisting of the improvements, acquisitions and work described in Exhibit A attached hereto and by this reference made a part hereof . There shall be included in the foregoing system or plan the acquisition and installation of all necessary valves, pumps, fittings , couplings, connections, equipment and appurtenances , - 11 - , , ' ORDINANCE N0. 406$ the acquisition of any easements , rights-of-way and land that may be required and the performance of such work as may be incidental thereto and necessary. All of the foregoinq shall be in accordance with the plans and specifications therefor prepared by the City' s engineers and consultinq engineers . The City Council may modify the details of the foregoinq system or plan where, in its judgment , it appears advisable if such modifications do not substantially alter the purposes of that system or plan. The life of the improvements comprising the foregoing system or plan of additions to and betterments and extensions of the Waterworks Utility of the City is declared to be at least twenty years . The estimated cost of the acquisition, construc- tion, installation and financing of the above-described improve- ments, including the costs of issuance and sale of the Bonds, is declared to be approximately $4 , 358, 000 . Such cost shall be paid from the proceeds of the Bonds authorized in this ordinance and other money of or received by the City which is made avail- able therefor . SECTION IV. The City Council finds that all payments required by Ordinances Nos . 3169 , 3188 , 3720 , 3896 and 3970 for the Outstanding Parity Bonds have been made into the respective bond redemption funds and accounts therein for the Outstanding Parity Bonds, that provision is hereinafter made for the accumu- lation of the amounts required in the Reserve Account of the - 12 - � , . � ' ORDINANCE N0. 4068 Bond Fund, and that there will be on file prior to the issuance and delivery of the Bonds a certificate of Richard H. Harbert of RH2 Engineering, P. S. , an engineer experienced in municipal utilities , that the Revenue of the Waterworks Utility is suffi- cient to meet the 1 . 3 coverage requirement of those ordinances . SECTION V. For the purpose of providinq a part of the money required to carry out the system or plan of additions to and betterments and extensions of the Waterworks Utility of the City, including the cost of issuance and sale of the Bonds , as herein specified, adopted and ordered to be carried out , the City shall issue the Bonds in the aggregate principal amount of $3 , 375, 000 . The Bonds shall be designated City of Renton Water and Sewer Revenue Bonds, 1987 (defined above as the "Bonds" ) ; shall be dated June 1, 1987; shall be in the denomination of $5, 000 or any integral multiple thereof within a single matur- ity; shall be numbered separately in the manner and with any additional designation as the Bond Registrar deems necessary for the purpose of identification; and shall bear interest, computed on the basis of a 360-day year of twelve 30-day months, payable on June 1, 1988, and semiannually thereafter on each succeeding December 1 and June 1. The Bonds shall bear interest at the rates and mature on June 1 in years and amounts as follows : Maturity Interest Years Amounts Rates 1989 $100 , 000 5 . 40% 1990 105 , 000 5 . 60 1991 110, 000 5 . 80 1992 120 , 000 6 . 00 - 13 - . � ORDINANCE N0. 4068 Maturity Interest Years Amounts Rates 1993 $125, 000 6 . 20% 1994 135 , 000 6 . 35 1995 145 , 000 6 . 50 1996 155 , 000 6 . 70 1997 165 , 000 6 . 90 1998 180, 000 7 . 00 1999 190, 000 7 . 15 2000 205 , 000 7 . 30 2001 225, 000 7 . 50 2002 240 , 000 7 . 70 2003 260, 000 7 . 80 2004 280, 000 7 . 80 2005 305, 000 7 . 80 2006 330 , 000 7 . 80 If any Bond is not redeemed upon proper presentment at its maturity or call date, the City shall be obligated to pay interest at the same rate for each such Bond from and after its maturity or call date until such Bond, both principal and interest, is paid in full or until sufficient money for such payment in full is on deposit in the Bond Fund and such Bond has been duly called for payment . The Bonds shall be issued only in registered form as to both principal and interest and recorded in the books and records maintained by the Bond Registrar (the "Bond Register" ) . The Bond Register shall contain the name and mailing address of the owner of each Bond and the principal amount and number of Bonds held by each owner . Both principal of and interest on the Bonds shall be payable in lawful money of the United States of America . Interest on the Bonds shall be paid by check or draft mailed to the registered owners at the addresses appearing on the Bond - 14 - ' ORDINANCE N0. 4068 Register on the fifteenth day of the month preceding the inter- est payment date or, if requested in writing by the registered owner of any Bond, by wire transfer on the interest payment date. Principal of the Bonds shall be payable upon presentation and surrender of the Bonds at either principal office of the Bond Reqistrar in Seattle, Washington, or New York, New York, at the option of such owners . The Bonds shall be payable solely out of the Bond Fund and shall be a valid claim of the owners 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 general obligations of the City. Upon surrender thereof to the Bond Registrar , Bonds may be exchanged for Bonds in any authorized denomination of an equal aggregate principal amount and of the same interest rate and maturity. Bonds may be transferred only if endorsed in the manner provided thereon and surrendered to the Bond Registrar . Such transfer or exchange shall be without cost to the owner or transferee . The Bond Registrar shall not be required to trans- fer or exchange any Bond during the fifteen days preceding any principal payment or redemption date. SECTION VI . The Bonds maturing in the years 1989 to 1997, inclusive, shall be issued without the right or option of the City to redeem the same prior to their stated maturity dates . The City reserves the right and option to redeem the Bonds maturing on or after June 1, 1998, prior to their stated matur- ity dates as a whole, or in part in inverse order of maturity - 15 - ORDINANCE NO. 4068 (and by lot within a maturity in such manner as the Bond Regis- trar shall determine) , from money derived from any source, on June 1, 1997, and on any interest payment date thereafter, at par plus accrued interest to the date fixed for redemption. Portions of the principal amount of any Bond, in install- ments of $5 , 000 or any integral multiple thereof , may be redeemed. If less than all of the principal amount of any Bond is redeemed, upon surrender of such Bond at the principal office of the Bond Registrar , there shall be issued to the registered owner, without charge therefor, a new Bond (or Bonds at the option of the registered owner) , of like maturity and interest rate in any of the denominations authorized by this ordinance . Notice of any call for redemption of any of the Bonds prior to their stated maturity dates shall be given not less than 30 nor more than 60 days prior to the date fixed for redemption by first class mail , postage prepaid, to the registered owner of any Bond to be redeemed at the address appearing on the Bond Register . The requirements of this section shall be deemed to be complied with when notice is mailed as herein provided, whether or not it is actually received by the owner of any Bond. 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. Notice of such intended redemption also shall be mailed within the same period, postage prepaid, to Moody' s Investors Service, Inc. , and Standard & Poor ' s Corporation at their offices in New York, New York, or - 16 - ORDINANCE N0. 4068 s , � their successors , to Seattle-Northwest Securities Corporation at its office in Seattle, Washington, or its successor, and to such other persons and with such additional information as the City Finance Director shall determine, but such mailings shall not be a condition precedent to the redemption of such Bonds . The City further reserves the right and option to purchase any or all of the Bonds in the open market at any time at a price not in excess of par plus accrued interest to the date of such purchase. SECTION VII . There is created the 1987 Water and Sewer Revenue Bond Redemption Account , heretofore defined as the Bond Fund, which shall be a separate bond redemption account within the Water and Sewer Revenue Parity Bond Fund. The Bond Fund is divided into two subaccounts , the Principal and Interest Account and the Reserve Account . So long as Bonds are outstanding against the Bond Fund, the City Finance Director shall (a) set aside and pay into the Principal and Interest Account out of the Revenue 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 June, 1987, an amount, together with the accrued interest received upon the delivery of the Bonds to the initial purchaser thereof , equal to 1/12 of the amount of interest payable on the Bonds on June l, 1988, and thereafter 1/6 of the next ensuing six months ' requirements for interest and 1/12 of the next ensuing twelve months ' requirements for principal on the Bonds - 17 - � � � ORDINANCE NO. 4068 and continuing thereafter until the Bonds, both principal and interest, are paid in full , and (b) set aside and pay into the Reserve Account out of the Revenue of the Waterworks Utility of the City in substantially equal monthly payments such amounts so that by no later than June l, 1992 , there shall have been accumulated in the Reserve Account for the Bonds an amount not less than the Average Annual Debt Service for the Bonds . The Reserve Account in the Bond Fund may be accumulated from any other money which the City may have available for such purpose in addition to or in lieu of using such revenue therefor . The City further agrees that when such required amounts have been paid into the Reserve Account in the Bond Fund, the City will at all times, except for withdrawals therefrom as authorized herein, maintain those amounts therein until there is sufficient money in the Bond Fund, including the Reserve Account therein, to pay the principal of and interest to maturity on all outstanding Bonds, at which time no further payments need be made into the Bond Fund and the money in the Bond Fund, includ- ing the Reserve Account, may be used to pay such principal and interest . In the event there shall be a deficiency in the Principal and Interest Account to meet maturing installments of either principal or interest, as the case may be, on the 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 - 18 - ` ORDINANCE N0. 4068 shall then be made up from the Revenue of the Waterworks Utility of the City first available after making necessary provisions for the required payments into the Principal and Interest Account . All money in the Reserve Account not needed to meet the payments of principal and interest when due may be kept on deposit in the official bank depository of the City or in any national bank or may be invested in any legal investment for City funds maturing not later than the interest or principal and interest payment date when such money will be needed. Interest on any such investment or on such bank account shall be depos- ited in and become a part of the Reserve Account until the total required reserve amount shall have been accumulated therein, after which time such interest shall be deposited in the Princi- pal and Interest Account . Notwithstanding the provisions for the deposit or mainte- nance of earnings in accounts of the Bond Fund, any earnings which are subject to a federal tax or rebate requirement may be withdrawn from the Bond Fund for deposit into a separate fund or account for that purpose. If the City shall fail to set aside and pay into the Bond Fund the amounts set forth above, the owner of any of the outstanding Bonds may bring an action against the City to compel such setting aside and payment . - 19 - . , ' � � ORDINANCE N0. 4068 . SECTION VIII . Funds in the Waterworks Utility Fund of the City (other than in any bond redemption or federal rebate account) shall be used in the following order of priority: (a) To pay Maintenance and Operation Expense; (b) To pay the interest on the Outstanding Parity Bonds , the Bonds and any Future Parity Bonds ; (c) To pay the principal of the Outstanding Parity Bonds , the Bonds and any Future Parity Bonds ; (d) To make all payments required to be made into any sinking fund or bond redemption fund here- after created for the payment of Future Parity Bonds which are Term Bonds ; (e) To make all payments required to be made into the reserve accounts created to secure the payment of the Outstanding Parity Bonds, the Bonds and any Future Parity Bonds ; (f) To make all payments required to be made into any revenue bond optional redemption fund or warrant redemption fund and debt service account or reserve account created to pay and secure the payment of the principal of and interest on any revenue bonds or revenue warrants of the City having a lien upon the Revenue of the Waterworks Utility junior and inferior to the lien thereon for the payment of the principal of and interest on the Outstanding Parity Bonds, the Bonds and any Future Parity Bonds; and (g) To retire by optional redemption or purchase in the open market any outstanding revenue bonds or revenue warrants of the City, to make necessary additions, betterments , improvements and repairs to or extensions and replacements of the Water- works Utility of the City, or for any other lawful City purpose. SECTION IX. The Revenue of the Waterworks Utility of the City is pledged to the payments set forth in Section VII , and the Bonds shall constitute a lien and charge upon such revenue prior and superior to any other charges whatsoever, excluding - 20 - ORDINANCE NO. 4068 , , Maintenance and Operation Expense, except that the lien and charge upon such revenue for the Bonds shall be on a parity with the lien and charge thereon for the Outstanding Parity Bonds and any Future Parity Bonds hereafter issued. SECTION X. In the judgment of the City Council, the Revenue 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, sanitary sewage disposal service and storm and surface water drainaqe service in the entire utility, will be more than sufficient to meet all Maintenance and Opera- tion Expense (and cost of maintenance and operation of the Waterworks Utility as that term is used in RCW 35 . 92 . 100) and the debt service requirements of the Outstanding Parity Bonds and to permit the setting aside in the Bond Fund, out of the revenue of the entire utility, of amounts sufficient to pay the interest on the Bonds as such interest becomes payable and to pay and redeem all of the Bonds at maturity. The City Council further declares that in creating the Bond Fund and in fixing the amounts to be paid into the same, as aforesaid, it has exercised due regard for the Maintenance and Operation Expense (and costs of maintenance and operation as used in RCW 35 . 92 . 100) and the debt service requirements of the presently outstandinq Outstanding Parity 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 revenue of such utility than in the judgment of the City Council will be available over and - 21 - ' ORDI�TANCE N0. 4068 , above such Maintenance and Operation Expense (and such costs of maintenance and operation) and debt service requirements of the Outstanding Parity Bonds and that no portion of the Revenue of the Waterworks Utility of the City has been previously pledged for any unrefunded indebtedness other than the payment of the presently outstanding Outstanding Parity Bonds . SECTION XI . The City covenants and agrees with the owner of each Bond at any time outstanding as follows : (a) It will establish, maintain and collect such rates and charges for water, sanitary sewage disposal service and storm and surface water drainage service so long as any Outstanding Parity Bonds and Bonds are outstanding as will make available for the payment of the principal of and interest on such bonds an amount equal to at least 1 .3 times the average annual debt service requirements, both principal and interest, on the Outstanding Parity Bonds and the Bonds after deducting Maintenance and Operation Expense from the Revenue of the Waterworks Utility of the City. "Averaqe annual debt service requirements" shall mean the aggreqate amount of principal and interest payable in each year over the remaining life of such Outstand- ing Parity Bonds and Bonds divided by the number of maturity years remaining to the last maturity of the longest maturing issue, being the year 2006 . (b) 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) 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 each of the Renton 1977 Water and Sewer Revenue Refunding Bond Redemption Fund, No . 2 (the " 1977 Bonds, Issue No . 2 Bond Fund") , the Renton 1977 Water and Sewer Revenue Refunding Bond Redemption Fund, No . 3 (the "1977 Bonds, Issue No . 3 Bond Fund" ) , the Renton 1983 Water and Sewer Revenue Bond Fund (the " 1983 Bond Fund" ) , and in the 1985 Water and Sewer Revenue Bond Redemption Account (the - 22 - ' ORDINANCE N0. 4068 . ti , "1985 Bond Fund" ) , the 1986 Water and Sewer Revenue Bond Account (the "1986 Bond Fund" ) and the Bond Fund in the Water and Sewer Revenue Parity Bond Fund of sums sufficient to pay, respectively, the principal of and interest on all 1977 Bonds , Issue No . 2 , 1977 Bonds, Issue No . 3 , 1983 Bonds, 1985 Bonds , 1986 Bonds and the Bonds at any time outstanding, and that it will not sell , lease, mortgage, or in any manner encumber or dispose of any part of the property of the Waterworks Utility of the City that is used, useful and material to the operation thereof , unless provi- sion is made for replacement thereof , or for payment into the 1977 Bonds, Issue No . 2 Bond Fund, the 1977 Bonds , Issue No . 3 Bond Fund, the 1983 Bond Fund, the 1985 Bond Fund, the 1986 Bond Fund and the Bond Fund in the Water and Sewer Revenue Parity 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 outstandinq 1977 Bonds, Issue No . 2 , 1977 Bonds, Issue No . 3 , 1983 Bonds , 1985 Bonds , 1986 Bonds and Bonds , respectively, as the revenue avail- able for debt service for such outstanding bonds for the twelve months preceding such sale, lease, encum- brance or disposal from the portion of the utility sold, leased, encumbered or disposed of bears to the revenue available for debt service for such bonds from the entire utility for the same period. Any such money so paid into such funds shall be used to retire such outstanding bonds at the earliest possible date. (d) It will while any of the Bonds remains 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 Bonds or any subsequent owner or owners thereof at the written request of such owner or owners complete operating and income state- ments of such utility in reasonable detail issued in any calendar year not more than ninety days after the close of such calendar year, and it will qrant any owner or owners of at least twenty-five percent of the outstanding 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 of any owner of any of the Bonds, it also will furnish to such owner a copy of the most recently completed audit of the City' s accounts by the State Auditor of Washington. - 23 - ORDINANCE NO. 4068 (e) It will not furnish water, sanitary sewage disposal service or storm and surface water drainage service to any customer whatsoever free of charge and promptly will take legal action to enforce collection of all delinquent accounts . (f) 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 such utility. If , as , and when the 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 such utility on which such war risk insurance may be written in an amount or amounts to cover adequately the value thereof . (g) It will pay all Maintenance and Operation Expense and the debt service requirements for the Outstanding Parity Bonds and the outstanding Bonds , and otherwise meet the obligations of the City as herein set forth. (h) It will take all actions necessary to prevent the interest on the Bond from being included in gross income for federal income tax purposes , and it will neither take any action nor make or permit any use of proceeds of the Bonds or other funds of the City at any time during the term of the Bonds which will cause the interest on the Bonds to be included in gross income for federal income tax purposes . The City has not been notified of any listinq or proposed listing by the Internal Revenue Service to the effect that it is a bond issuer whose arbitrage certifications may not be relied upon. SECTION XII . The City finds and declares that (a) it is a duly organized and existing governmental unit of the State of Washington and has general taxing power; (b) no Bond which is part of this issue of Bonds is a "private activity bond" within - 24 - � ORDINANCE N0. 4068 _ � the meaning of Section 141 of the Internal Revenue Code of 1986 (the " 1986 Code" ) ; (c) at least 95°a of the net proceeds of the Bonds will be used for local governmental activities of the City (or of a governmental unit the jurisdiction of which is entirely within the jurisdiction of the City) ; (d) the aggregate face amount of all tax-exempt obligations (other than private activ- ity bonds) issued by the City and all entities subordinate to the City (including any entity which the City controls or which derives its authority to issue tax-exempt obligations from the City) during the current calendar year is not reasonably expected to exceed $5 , 000 , 000; and (e) the amount of tax-exempt obligations, including the Bonds, designated by the City as "qualified tax-exempt obligations" for the purposes of Section 265(b) (3) of the 1986 Code or any predecessor provision of federal law during the calendar year in which the Bonds are issued does not exceed $10, 000 , 000 . The City therefore certi- fies that it is an issuer which qualifies for the small govern- mental issuer arbitrage rebate exemption under Section 148(f) (4) (C) of the 1986 Code and designates the Bonds as "qualified tax-exempt obligations" for the purposes of Section 265(b) (3) of the 1986 Code. SECTION XIII . The Bonds shall be printed or lithographed on good bond paper in a form consistent with the provisions of this ordinance, shall be signed by the facsimile signatures of the Mayor and the City Finance Director and shall have a facsim- ile reproduction of the City seal printed thereon. - 25 - ORDINANCE NO. 4068 Only such Bonds as shall bear thereon a Certificate of Authentication in the following form, manually executed by the Bond Registrar, shall be valid or obligatory for any purpose or entitled to the benefits of this ordinance: CERTIFICATE OF AUTHENTICATION This bond is one of the fully registered City of Renton, Washington, Water and Sewer Revenue Bonds , 1987, described in the Bond Ordinance. WASHINGTON STATE FISCAL AGENCY Bond Registrar By Authorized Officer The authorized execution of such Certificate of Authentica- tion shall be conclusive evidence that the Bonds so authenti- cated have been duly executed, authenticated and delivered hereunder and are entitled to the benefits of this ordinance. In case either or both of the officers who shall have executed the Bonds shall cease to be such officer or officers of the City before the Bonds so signed shall have been authenti- cated or delivered by the Bond Registrar or issued by the City, such Bonds nevertheless may be authenticated, delivered and issued and upon such authentication, delivery and issue, shall be as binding upon the City as though those whose facsimile signatures appear on the Bonds had continued to be such officers of the City. Any Bond also may be signed on behalf of the City by such persons as at the actual date of execution of such Bond shall be proper officers of the City authorized to execute Bonds - 26 - ' ' ORDINANCE NO. 4068 although on the original date of such Bond such persons were not such officers of the City. SECTION XIV. The Bond Registrar shall keep, or cause to be kept, at its principal corporate trust office, sufficient books for the registration and transfer of the Bonds which shall at all times be open to inspection by the City. The Bond Registrar shall be responsible for its represen- tations contained in the Registrar ' s Certificate of Authentica- tion on the Bonds . The Bond Reqistrar may become the owner of Bonds with the same rights it would have if it were not the Bond Registrar and, to the extent permitted by law, may act as depository for and permit any of its officers or directors to act as members of, or in any other capacity with respect to, any committee formed to protect the rights of Bond owners . SECTION XV. The Bonds shall be negotiable instruments to the extent provided by RCW 62A. 8-102 and 62A. 8-105 . SECTION XVI . In the event the City shall issue advance refunding bonds pursuant to the laws of the State of Washinqton, or have money available from any other lawful source, to pay the principal of and interest on the Bonds or such portion thereof included in the refunding or defeasance plan as the same become due and payable and to refund or defease all such then outstand- ing Bonds and to pay the costs of refunding or defeasance, and shall have irrevocably set aside for and pledged to such pay- ment, refundinq or defeasance, money and/or direct obligations of the United States of America sufficient in amount, together - 27 - . ORDINANCE N0. 4068 , with known earned income from the investment thereof , to make such payments and to accomplish the refunding as scheduled (hereinafter called the "trust account" ) and shall irrevocably make provisions for redemption of such Bonds , then in that case the Bonds shall be deemed defeased (hereinafter collectively called the "defeased Bonds" ) . Thereafter, all right and inter- est of the owners of the defeased Bonds in the covenants of this ordinance, in the Revenue of the Waterworks Utility of the City, and in funds and accounts obligated to the payment of such Bonds shall cease and become void, except such owners shall have the riqht to receive payment of the principal of and interest on the defeased Bonds from the trust account and, in the event the funds in the trust account are not available for such payment, shall have the residual right to receive payment of the princi- pal of and interest on the defeased Bonds from the Revenue of the Waterworks Utility of the City without any priority of lien or charge against such revenue or covenants with respect thereto except to be paid therefrom. After the establishing and full funding of such trust account, the City may then apply any money in any other fund or account established for the payment or redemption of the defeased Bonds to any lawful purposes as it shall determine, subject only to the rights of the owners of any other bonds then outstanding . In the event the refunding plan provides that the Bonds being refunded or the refunding bonds to be issued be secured by - 28 - ' ORDINANCE NO. 4068 . , cash and/or direct obligations of the United States of America or other legal investments pending the prior redemption of those Bonds beinq 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 pledged irrevocably for the prior redemption of those Bonds included in the refund- inq plan, then only the debt service on the Bonds which are not defeased 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 coverage for determining compliance with the rate covenants . SECTION XVII . The City reserves the right to issue Future Parity Bonds which will constitute a lien and charge upon the Revenue of the Waterworks Utility of the City on a parity with the Outstanding Parity Bonds and the Bonds if the conditions set forth in Section 15 of Ordinance No . 1450 , as modified by the provisions set forth in Section 13 of Ordinance No . 3169 and Section 12 of Ordinance No . 3720, are met and complied with at the time of the issuance of such Future Parity Bonds, which sections are by this reference incorporated herein and made a part hereof and shall continue to be applicable even though the 1953 Bonds have been paid and retired. SECTION XVIII . There has been created in the office of the City Finance Director a special fund of the City known and designated as the Water and Sewer Construction Fund, 1983 (the - 29 - a * ` s ' ORDINANCE N0. 4068 "Construction Fund" ) . The principal proceeds received from the issuance and sale of the Bonds shall be deposited in the Con- struction Fund and shall be used to pay the costs of carrying out the system or plan of additions to and betterments and extensions of the Waterworks Utility of the City specified, adopted and ordered to be carried out by this ordinance and the expenses incurred in the issuance of the Bonds . Pending the expenditure of such principal proceeds out of the Construction Fund, the money in such fund may be invested in any leqal investment and the investment income may be retained in such fund and used for the purposes of such fund, except that earn- ings subject to a federal tax or rebate requirement may be withdrawn from the Construction Fund for such tax or rebate purposes . The accrued interest on the Bonds , if any, received at the time the Bonds are delivered to the initial purchaser thereof shall be deposited in the Bond Fund. SECTION XIX. Seattle-Northwest Securities Corporation, of Seattle, Washington, has presented a bond purchase agreement (the "Purchase Contract" ) to the City by which Seattle-Northwest Securities Corporation has offered to purchase the Bonds under the terms and conditions provided in the Purchase Contract, which written Purchase Contract is on file with the City Clerk and is incorporated herein by this reference . The City Council finds that entering into the Purchase Contract is in the City' s best interest and, therefore, accepts the offer contained in the - 30 - � ORDINANCE N0. 4068 _ � � Purchase Contract and authorizes the execution of the Purchase Contract by City officials . The Bonds will be printed at City expense and will be delivered to the purchaser in accordance with the terms of the Purchase Contract with the approving legal opinion of Roberts & Shefelman, municipal bond counsel of Seattle, Washinqton, relative to the issuance of the Bonds printed on each Bond. Bond counsel has not been retained to and shall not be required to review or express any opinion concerning the completeness or accuracy of any official statement, offering circular or other sales material issued or used in connection with the Bonds, and bond counsel ' s opinion shall so state. The proper City officials are authorized and directed to do everything necessary for the prompt execution and delivery of the Bonds to the purchaser, includinq the execution of the Official Statement on behalf of the City, and for the proper application and use of the proceeds of the sale thereof . SECTION XX. Pending the printing, execution and delivery to the purchaser of the definitive Bonds, the City may cause to be executed and delivered to such purchaser a single temporary Bond in the total principal amount of the Bonds . Such temporary Bond shall bear the same date of issuance, interest rates, principal payment dates and terms and covenants as the defini- tive Bonds, shall be issued as a fully registered Bond in the name of such purchaser, and shall be in such form as acceptable to such purchaser . Such temporary Bond shall be exchanged for - 31 - r • • � a s � ORDINANCE N0. 4068 . � t � the definitive Bonds as soon as the same are printed, executed and available for delivery. SECTION XXI . All actions taken consistent with the provi- sions of Ordinance No . 2020 as amended by Section II of this ordinance are ratified, confirmed and approved. PASSED BY THE CITY COUNCIL this 18th day of May , 1987 . / � ��� �`Maril�n���ersen D y � , eputy City Clerk APPROVED BY THE MAYOR this 18th day of May , 1987 . �'/��g�2-�tLi'�� '�:/��y�' Thomas W. Trimm, Mayor Pro tem Approved as to Form: i��--�� � ��� , � � Date of Publication: May 22 , 1987 1860r - 32 - . � , . ' � ORDINANCE N0. 4068 . � EXHIBiT A . w . , Water Sys�em Improvenents - Major Projects S�ringbrook Watershed Site Lind Avenue SW 12" Watermain Wells #1 and #2 Improvement West Hill Chlorinator Rolling Hills Reservoir Predesign Telemetry Im�rovements Phase III S . Talbot Hill Reservoir Phase I Highlands Booster Pum� Station Well Field Protection Phase III 84th Avenue S 12" Wate�main Emergency Well power Design Well #5 Rehabilitation CBD 24'° Transmission Watermain Renton Hill PRV Improvements Cedar River Golf Course Well Exploration Black River Reservoir Site Maple Valley 12" Watermain Lake Washington Boulevard 12" Watermain Sanitary Sewer Improvements - �•�ajor Projects NE 7th Street Sewer Replacement CBD Small Sewer Replacement S . Second Street Sewer �ehabilitation Renton Hill Alley Sewer Replacement Phase II Kennydale Lake Front Sewer Repair N. First Street Sewer Replacement Phase IT Shattuck Avenue S . Interceptor Phase II Lake Washington Boulevard NE Sanitary Sewer Construction Water System Rehabilitation - Rehabili�ation, Extensions and Improvements Projects President Park Watermain Well #3 Rehabilitation Sanitary Sewer Rehabilitation - Rehabilitation, Extensions and 3m�rovements Projec� 1987 Sewer TV, Cleaning/Root Trea�ment Storm Drainaqe Improvement Projects I-405 Storm Crossing at Renton Village Panther Creek Wetlands Acquisition II S . 7th Street at Shattuck Flood-Dentention Pond Cedar River Dredging �hase II P-1 Box Culvert under 3-405 Phase I NE 27th & Aberdeen Flood Control I-405 Culvert at Gypsy Creek