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HomeMy WebLinkAboutORD 1489Y CITY OF RENTON, WASHINGTON ORDINANCE NO. 1489 AN ORDINANCE specifying and adopting a system or plan of additions to and betterments and e)tensions of the waterworks system of the City of Renton, including the sewerage system as a part thereof; declaring the estimated cost thereof as nearly as may be; providing for the issuance of $325,000.00 par value of "City of Renton Water and Sewer Revenue Bonds, 1954" to obtain the funds with which to pay the costs of said system or plan; fixing the date, form, denomination, maturities, terms and covenants of said bonds; creating a special fund to provide for the payment of said bonds; and providing for the calling of bids for the sale thereof. WHEREAS, by Ordinance No. 1156, as amended by Ordinances Nos. 1157 and 1173, the sewerage system of the City of Renton has become and is considered a part of the waterworks system of the City; and WHEREAS, the City of Renton has heretofore issued under date of March 1, 1953, $$15,000.00 par value of "City of Renton Water and Sewer Refunding and Improvement Revenue Bonds, 19531t, pursuant to Ordinances Nos. 1450 and 1452, for the purpose of providing the funds to pay the cost of constructing and installing certain additions to and betterments and extensions of both the waterworks system of the City of Renton and the sewerage system of the City, which has become and is considered a part of the waterworks system of the City, and for the purpose of paying, refund- ing and redeeming $24,000.00 of then outstanding "City of Renton Water Revenue Refunding Bonds, 194811, which 1953 issue of bonds is presently a first lien and charge upon the gross revenues from the combined water and sewer systems of the City, excluding charges for maintenance and operation; and WHEREAS, in Section 15 of said.Ordinance No. 1450 the City of Renton reserved the right to issue additional water and f�. a • 1 �1I y r , sewer revenue bonds which shall constitute a charge and lien upon IV the revenues of the waterworks system, including the sewerage system as a part thereof, on .a parity with the said "City of Renton Water and Sewer Refunding and Improvement Revenue Bonds, 1953" on compliance with the following conditions at the time of the issuance of such additional bonds: "(a) All payments required by this ordinance to be paid into the tRenton 1953 Water and Sewer Refunding and Improvement Revenue Bond Fundi shall have been made; and "(b) The revenues of said waterworks system, includ- ing the sewerage system, shall be and be deemed sufficient, after the payment of operation and maintenance costs and taxes, based upon the historical experience of said 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 requirement of the bonds of this issue then outstanding and of the revenue bonds proposed to be so issued. Such deter- mination of the sufficiency of the revenues shall be made and certified to by an engineer experienced in municipal utilities; and "(c) The ordinance authorizing the issuance of such additional revenue bonds shall provide for the setting aside into a reserve fund or account of an amount not less than the average annual debt service requirement, both principal and interest of the additional revenue bonds proposed to be so issued, which reserve fund or account shall be maintained in such amount so long as any of said bonds are outstanding to the last maturity thereof ; " and WHEREAS, the City Council hereby finds and declares that all payments required to be made to date hereof into the .'.'Renton 1953 Water and Sewer Refunding and Improvement Revenue Bond Fund" by Ordinance No. 1450 have been made, and that Richard E. Wolff, an engineer experienced in municipal utilities, has certified that a said revenues are sufficient to meet said 1.5 coverage requirement as evidenced by his certificate to such effect on file with the City Clerk; now, therefore, BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, as follows: Section 1. The City of Renton hereby specified and adopts -2- s r i a system or plan for making additions to and extensions and betterments of the waterworks system of the City, which includes the sewerage system as a part thereof, to consist of the following: (1) There shall be constructed and installed the following water supply: mains, to -wit: (a) A sixteen inch or larger water supply main from Talbot Reservior to a junction with the existing ten -inch and fourteen -inch cast iron pipes near the south city limits in Main Street. (b) A sixteen inch or'larger water supply main from a junction with the existing ten -inch and fourteen - inch cast iron pipes at the corner of Fourth Avenue and Main Street to a connection with the existing twelve --inch pipe at Liberty Park Oump house; (c) A twelve -inch or larger water supply main from Liberty Park pump house to Fourth Avenue North and Houser Way; (d) A sixteen inch or larger water supply main from the aforementioned supply line to a reservior site to be acquired under paragraph (2). (2) There shall be constructed and installed a steel reservior of approximately three million gallon capacity on a suitable site to be acquired, and said reservior shall be connected with the water distri- bution system. (3) The Springbrook spring area shall be improved by installing perforated collecting pipes or tile, by replacing the low lift pump, and by installing such controls, appurtenances and other work as may be necessary for a complete project. There shall be included in the foregoing the acquisition and installation of all necessary valves, fittings, couplings, connections, equipment and appurtenances and the acquisition of any easements and rights-of-way and lands and water rights that may be required; and there shall also be included the performance of such work as may be incidental and necessary to the foregoing construc- tion and installation. Pipes shall be of cast iron, asbestos cement or other suitable permanent type material. The City Council may modify the details of the foregoing -3- r 4 system or plan where in its judgment it appears advisable, provided such modifications do not substantially alter the purposes herein- above set forth. Section 2. The estimated cost, as near as may be,,of the aforesaid system or plan of additions, extensions and betterments to the waterworks system of the City of Renton, which includes the sewerage system as a part thereof, is hereby declared to be $325,000.00. Section 3. The cost of acquiring, constructing and com- pleting the foregoing system or plan of additions, extensions and betterments shall be paid from the proceeds received from the issuance and sale of "City of Renton Water and Sewer Revenue Bonds, 1954" in the amount of $325,000.00 par value. The bonds shall be in denom- inations of $1,000.00 each, shall be numbered from 1 to 325 inclusive, shall be dated September 1, 1954, and shall bear interest at a rate or rates not to exceed. 4% per annum to be hereafter fixed by ordinance payable semiannually on March lst and September 1st of each year,interest to maturity to be evidenced by coupons to be attached to said bonds with full obligation on the part of the City to pay interest at the same rate or rates after the bond maturity dates until said bonds with interest are paid in full or funds are available for payment in full. Both principal of and ihtorest on said bonds shall be payable inflawful money of the United States at the Office of the City Treasurer of the City of Renton, Washing- ton. Said bonds shall be payable solely out of the special fund hereinafter created, shall be a valid claim of the holder thereof only as against said fund and the fixed amount of the revenues of the waterworks system, including the sewerage system as a part thereof, pledged to such fund, and shall not be a general obligation of the City of Renton. Said bonds shall mature serially, annually, over a period from twenty to thirty years from the date of their issue in accordance with the following schedule, to -wit: Bond Numbers Amounts Maturities - 1 to 25, Inclusive $25,000.00 September 1, 1974 26 to 51, " $26,000.00 September 1, 1975 52 to 78, If $27,000.00 September 1, 1976 79 to 106, it $28,000.00 September 1, 1977 107 to 134, " $28,000.00 September 1, 1978 135 to 163, " $29,000.00 September 1, 1979 164 to 193, " $30,000.00 September 1, 1980 194 to 224, " $31,000.00 September 1, 1981 225 to 256, " $32,000.00 September 1, 1982 257 to 290, " $34,000.00 September 1, 1983 291 to 325,. " $35;000.00 September 1, 1984 Section 4. The City of Renbn reserves the.:right to redeem any or all of the outsanding bonds of said issue at par, plus accrued interest, on any semiannual interest payment date, on or after ten years from the date of issue, in inverse numerical order, highest numbers first, by giving at least thirty days notice of such intended redemption by publication thereof in the official newspaper of said City, which notice is to be published once not less than thirty nor more than forty-five days prior to the call date. Interest on any b:onds so called for redemption shall cease on the date fixed for such redemption. Section 5. There shall be and hereby is created and established a special fund to be known as "Renton 1954 Water and Sewer Revenue Bond Redemption Fund", which fund is to be drawn upon for the sole purpose of paying the principal of and interest upon said bonds from and after the date thereof. Said fund is hereby divided into a "Principal and Interest Account" and a "Reserve Account"; and so long thereafter as bonds are outstanding against such fund the City Treasurer of the City of Renton shall set aside and pay into said fund out of the gross revenues of the waterworks system now belonging to or which may hereafter belong to the City, including all additions, betterments and extensions thereof now or hereafter made, and including the sewerage system as a part thereof, -5- a fixed amount, without regard to any fixed proportion, namely, (a) Into the "Principal and Interest Account", monthly, beginning on October 1, 1954, one-sixth of the next ensuing six monthst requirement of interest; and beginning on October 1, 1973, one -twelfth of the next ensuing twelve monthst requirements of both principal and interest; and (b) Into the ''Reserve Account", monthly, not less than the sum of $444.44 until the total sum of $32,000.00 has been accumulated therein, which total sum is to be accumulated by no later than September 1, 1960. Said "Reserve Account" may be accumulated from any other moneys which the City of Renton may have available for such purpose in addition to using said revenues therefor. Said "Reserve Accoumt" shall be maintained in such amount at all times so long as any of said bonds are outstanding: PROVIDED., that when the total amount in said special fund shall equal the total amount of principal and interest on all outstanding bonds of said issue to the last maturity date thereof, no further payments need be'made into said special fund. In the event that there shall be a deficiency in the "Principal and Interest Account" in said special fund to meet maturing installments of either principal or interest, as the case may be, such deficiency shall be made up from the "Reserve Account" by the withdrawal of cash therefrom for that purpose. Any defi- ciency created in the "Reserve Account" by reason of any such withdrawal shall then be made up from the moneys from the revenues of said waterworks system, including the sewerage system, first available after making necessary provision for the required payments into the "Principal and Interest Account". The money in the "Reserve Account" shall otherwise be held intact and may be applied against the last outstanding bonds of this issue. All money in the "Reserve Account" above.provided for may be kept on deposit in the official bank depository of the City of M Renton or in any national bank, or may be invested in United States Government obligations maturing not more than twelve years from date of issue but.inrn event later than September 1, 1984. Interest on any such investment or on such bank account shall be deposited in and become a part of the "Reserve Accounts' until there shall be the total sum of $32,000.00 accumulated therein as aforesaid. Section 6. The gross revenues from the combined water and sewer systems, including all revenues derived from all charges for water and sewer service and all revenues derived from the water and sewer service furnished the United States Government or any branch of the Federal Housing Authority for any units of any Federal Housing Authority, hre hereby pledged to such payment and the bonds herein authorized shall constitute a lien and charge upon such revenues prior and superior to any other charges whatever, excluding charges for maintenance and operation, except that the charge or lien upon said revenues for this issue of bonds shall be on a parity with the charge or lien upon such revenues for the outstanding "City of Renton Water and Sewer Refunding and Improvement Revenue Bonds, 1953" and any other additional water revenue bonds or water and sewer revenue bonds hereafter issued on a parity with said "City of Renton Water and.Sewer Refunding and Improvement Revenue Bonds, 195311 in accordance with the provisions of Section 15 of Ordinance No. 1450. Section 7. In the judgment of the City Council, the gross revenues and benefits to be derived from the operation and maintenance of the waterworks system of the City, including the sewerage system as a part thereof, and the additions, extensions and betterments therebherein provided for, at the rates to be charged for water and sewerage service on the entire systems, will be more than sufficient to- meet all expenses of operation and maintenance there- of and the debt service requirements of the $310,000.00 par value of "City of Renton Water and Swrer Refunding and Improvement -7- Revenue Bonds, 1953" of the City presently outstanding, and to per- mit the setting aside in said special fund, out of the gross revenues of the entire systems, of amounts sufficient to pay the interest on the revenue bonds herein authorized to be issued as such interest .becomes payable and to pay and redeem all of said bonds at maturity. The City Council and corporate authorities of the City of Renton further hereby declare that in creating the said special fund and in fixing the amounts to be paid into the same as aforesaid, they have exercised due regard for the cost of operation and mairtenance of the waterworks. system, including the sewerage system, and the debt service requirements of the $310,000.00 par value OCity of Renton Water and Sewer Refunding and Improvement Revenue Bonds, 1953 11 presently outstanding, and the City has not bound and obligated itself to set aside and pay into said special fund a greater amount or proportion of the revenues of the said systems 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 bonds, and that no portion of the revenues of said waterworks system, including said sewerage system, has been previously pledged for any other indebtedness, except for the payment of the "City of Renton Water and Sewer Refunding and Improvement Revenue Bonds,195311. Section 8. The City of Renton shall establish, maintain and collect such rates and charges for water and sewerage service, so long as any bonds of this issue are outstanding, as will make available for the payment of the principal of and interest on all of such bonds as the same shall accrue,an amount equivalent to at least 1.5 times the average annual debt service requirement, both principal and interest, of this bond issue and said 1953 issue of bonds, after deducting costs of maintenance and operation from the gross revenues of the waterworks system, including the sewerage system as a part thereof. Section 9. The City of Renton hereby binds itself irrevocably not to mortgage, sell, lease or in any manner dispose of the waterworks system, including the sewerage system, now belonging to or which may hereafter belong to it, including all additions, extensions and betterments thereof at any time made, until all of the bonds hereby authorized and hereafter issued with interest thereon shall have been fully paid, and the said City hereby covenants and agrees to maintain in good condition and to operate said systems and to establish, maintain and collect such rates as will produce gross revenues from the said waterworks system, including the sewerage system, sufficient to permit payment into said special fund of the amounts required for the payment of the principal of and interest on the bonds herein authorized as they become due and the amounts that are required to be paid into said "Reserve Account", and, in addition thereto,.to pay all costs of maintenance and operation and taxes, and to meet the debt service requirements of said $310,000.00 par value of "City of Renton Water and Sewer Refunding and Improvement Revenue Bonds, 1953" of the City presently outstanding and otherwise to meet the obligations of the said City as herein set forth. Section 10. The City of Renton will, while any of the bonds herein authorized remain outstanding, keep proper books of accounts and records (separate and apart from other accounts and records) in which complete and correct entries will be made of all transactions relating to the said waterworks system, including the sewerage system, and it will furnish the original purchaser of said bonds and any subsequent holder or holders thereof, at the written request of such holder or holders, a complete operating and income state- ment of the said systems in reasonable detail covering any fiscal year, not more than thirty days after the close of said fiscal year, and it will grant any holder or holders of at least 25% of the outstanding bonds herein authorized the right at all reasonable times to inspect the said systems and all records, accounts and data of the City relating thereto. Section 11. The proceeds of the sale of said bond.s shall be used for the sole purpose of acquiring, and constructing the plan or system of additions to and extensions and betterments of the waterworks system of the City, including the sewerage system as a part thereof, as above described and of paying the costs and expenses connected therewith and the City of Renton through its proper officers and agents, shall proceed forthwith with the making of the improvements herein authorized. Section 12. Said "City of Renton Water and Sewer Revenue Bonds, 1954" shall be in substantially the following form: No. $1,000.00 UNITED STATES OF AMERICA. STATE OF WASHINGTON CITY OF RENTON WATER AND SEWER REVENUE BOND, 1954 KNOW ALL.MEN BY THESE PRESENTS: That the City of Renton, State of Washington, acknowledges itself to owe, and for value received, hereby promises to pay to bearer on the 1st day of September, 19_„x, the principal sum of ONE THOUSAND .DOLLARS together with interest thereon.at the rate of ___% per annum, payable semiannually on the lst day of March and September of each year, upon presenta- tion 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 maturity date until this bond with interest is paid 'in full or funds are available for payment in full. Both principal and interest are payable in lawful money of the United States at the office of the City Treasurer of Renton, Washington, solely out of the special fund created by Ordinance No. , known as gRenton 1954 Water and Sewer Revenue Bond Redemption Fund", into which fund the City of Renton hereby irrevocably binds itself to pay certain fixed amounts out of the gross revenues of the municipal waterfiorks system, including the sewerage system, now belonging to or which may hereafter belong to said City, includ- ing all additions, extensions and betterments thereof now or at any time made or constructed, without regard to any fixed. proportion, namely, an amount -18- sufficient to pay the principal of and interest on this issue of bonds as they respectively become due and to accumulate a total reserve of $32,000.00, all at the times and in the manner set forth in Ordinance No. The gross revenues from the combined water and sewer systems, including all revenues derived from all charges for water and sewer service and all revenues derived from cater and sewer service furnished the United States Government or any branch of the Federal Housing Authority for any units of any Federal Housing Authority, 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 whatever, excluding charges for maintenance and operation, except that the charge or lien upon said revenues for this issue of bonds shall be on a parity with the charge or lien upon such revenues for the out- standing "City of Renton Water and Sewer Refunding and Improvement Revenue Bonds, 1953" and any other additional water revenue bonds or water and sewer revenue bonds hereafter issued on a parity with said "City of Renton Water and Sewer Refunding and Improve- ment Revenue Bonds, 1953" in accordance with the pro- visions of Section 15 of Ordinance No. 1450. The City of Renton hereby binds itself to establish, maintain and collect such rates and charges for water and sewerage service, so long as any bonds of this issue are outstanding, as will make available for the payment of the principal of and interest on all of such bonds as the same shall accrue, an amount equivalent to at least 1.5 times the average annual debt service requirement, both principal and interest, of this bond issue and of said 1953 issue of bonds, after deducting costs of maintenance and operation from the gross revenues of the waterworks system, including the sewerage system as a part thereof. This bond is one of an authorized issue of $325,000.00 par value of bonds, all of like date, tenor and effect, except as to interest rates and maturities, all payable from the said "Renton 1954 Water and Sewer Revenue Bond Redemption Fund", and all issued by said City under and in pursuance of the laws of the State of Washington and Ordinance No. of the City of Renton, for the purpose of providing funds 'to pay the costs of making certain additions, extensions and betterments to the waterworks system of the City, ircluding the sewerage system as' a part thereof. Reference is made to said Ordinance as more fully describing the covenants with and rights of holders of bonds of this issue. The City reserves the right to pay and retire the bonds of this issue at par, plus accrued interest, on ant interest payment date, from and after September 1, 1964, in inverse numerical order, highest numbers first, by publishing notice thereof once in the official newspaper of the City of Renton, not less than thirty nor more than fortyfive days prior to the call date. Interest on any bonds so called for redemption shall cease on the date fixed for such redemption. -11- The City of Renton hereby binds itself irrevo- cably not to mortgage, sell, lease or in any manner encumber or:. dispose of said municipal waterworks system, including the sewerage system, now belonging to it or which may hereafter belong to it, including any additions, replacements, betterments and extensions thereof, until all of the bonds of this issue with interest thereon shall have been fully paid; and the said City hereby covenants, agrees to and with the holders of each and every of said bonds to maintain in good condition and tocperate said waterworks system, including the sewerage system, and all additions, extensions, replacements and betterments thereof, and to maintain and collect such rates and charges in connection therewith as will produce gross revenues sufficient to meet the obligations of said City as herein set forth. It is hereby certified and declared that said bonds are issued pursuant to and in strict compliance with the Constitution and Laws of the State of Washington and the ordinances of the City of Renton, and that all acts, conditions and things required to be done precedent to and in the issuance of this bond have happened, been done and performed as required by law. IN WITNESS WHEREOF, the City of Renton, Washington, has caused this bond to be signed by its Mayor and attested by its City Clerk and its corporate seal to be hereto affixed and the interest coupons attached to be signed with the facsimile signatures of said officials this 1st day of September, 1954. Attest: City Clerk CITY OF RENTON, WASHINGTON By: Mayor The ir#erest coupons attached to said bonds shall be in substantially the following form: No. E.1 On (March) (September) 1, 19 , THE CITY OF RENTON, WASHINGTON, upon presentation and surrender of this coupon, will pay to bearer at the office of the City Treasurer the sum of Dollars $ in lawful money of the United States of America from the special fund of said City, known as the $Renton 1954 Water and Sewer Revenue Bond Redemption Fund", said sum being six monthst interest then due on its "City of Renton Water and Sewer Revenue Bond, 1954", dated September 1, 1954 and numbered Attest: City Clerk CITY OF RENTON, WASHINGTON By: Mayor Section 13. Said bonds shall be printed on lithographed forms, shall be signed by the Mayor and attested by the Clerk, and shall have the seal of the City of Renton affixed thereto, and the coupons shall bear the facsimile signatures of the Mayor and the Clerk. Section 14. The Clerk of the City of Renton is hereby directed to:.publish in the official newspaper of the City and in the Seattle Daily Journal of Commerce a Notice of Sale of said bonds calling for bids for the purchase thereof at the City Hall, Renton, Washington, said notice to be published once in each newspaper not later than A 0- k) .. . Bidders are required to submit a bid specifying the lowest rate or rates of interest at which said bidders will purchase said bonds at a price not less than 99% of par. Said bonds shall not bear a rate or rates of interest in excess of 4% per annum. Each bid shall show the total amount of interest to be paid over the life of the boruls from the date of issue, less the premium, if any, or plus the discount, if any, and the effective rate of interest over the life of said bonds. All bids shall be sealed and shall be accompanied by a deposit of 5% of the amount of the bid, either in cash or by certified check, which shall be returned if the bid is not axepted. If the successful bidder shall fail and neglect to complete the purchase of said bonds within thirty days following the acceptance of his bid the amount of his deposit shall be forfeited to the City. The City reserves the right to reject any or all bids submitted and to waive any informality in the bidding and, if all bids be rejected, said bonds may be readvertised for sale by the City Council in the manner herein provided or the City may proceed to sell the bonds at private sale. Said bonds shall be furnished by the City and shall be sold with the opinion of W(ter, Roberts & Shefelman, bond counsel of Seattle, Washington, approving the legality of the same, all at the expense of the City. -13- The bids shall be received by the City Clerk of the City of Renton at the City Hall at Renton, Washington, until 8:00 orclock p.m. on the evening ofu:�,v-sty-. 1954, at which time all bids will be publicly opened by the said Clerk and considered at the meeting of the City Council of the City of Renton then held in said.City Hall. PASSED by the City Council at a regular meeting thereof and APPROVED by the Mayor this 27th day of irTvl,, 1954. Attest: yor Date of publication: August 5, 1954. --14--