HomeMy WebLinkAboutORD 4211 wi
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CITY OF RENTON, WASHINGTON
ORDINANCE N0. 4211
AN ORDINANCE relating to the waterworks utility
of the City, including the sewerage system as a part
thereof ; specifying and adopting a system or plan of
additions to and betterments and extensions of the
waterworks utility; providing for the issuance of
$1, 715, 000 par value Water and Sewer Revenue Bonds,
1989 , 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,
denominations, maturities, interest rates, terms and
covenants of those bonds; creating a special bond
redemption account to provide for the payment of the
bonds; ratifying and confirming the public sale of
those bonds; and accepting the bid of and providing
for the delivery of those bonds to Seattle-Northwest
Securities Corporation, Seattle, Washington.
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") ; and
WHEREAS, by Ordinance No . 2020 the system of storm or
surface water sewers was determined to consist as a part of the
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sewerage system and, together with the sewerage system, combined
with the Waterworks Utility; and
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ORDINANCE NO. 4211
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WHEREAS, by Ordinance No . 1450, the City provided for the
issuance of its Water and Sewer Refunding and Improvement Reve-
nue Bonds, 1953 (the "1953 Bonds" ) , and, by Section 15 of that
ordinance, established certain conditions for the issuance of
additional water and sewer revenue bonds on a parity of lien
with the 1953 Bonds ; and
WHEREAS, all of the water and sewer revenue bonds of the
City issued on a parity of lien with the 1953 Bonds pursuant to
the original provisions of Section 15 of Ordinance No. 1450 have
been paid and redeemed, or irrevocable provision for their
payment and redemption has been made; and
WHEREAS, by Ordinance No. 3169 , the City authorized the
issuance of its Water and Sewer Revenue Refunding Bonds, 1977,
Issue No. 2 (the "1977 Bonds, Issue No . 2" ) , and, by Section 13
of that ordinance, incorporated and amended Section 15 of Ordi-
nance No. 1450, all of which bonds have been paid and redeemed;
and
WHEREAS, by Ordinance No. 3188, the City authorized the
issuance of its Water and Sewer Revenue Refunding Bonds , Issue
No. 3 (the "1977 Bonds , Issue No . 3" ) , and by Section 13 of that
ordinance incorporated Section 15 of Ordinance No . 1450, as
modified by Section 13 of Ordinance No . 3169 ; and
WHEREAS, by Ordinance No . 3720, the City authorized the
issuance of its Water and Sewer Revenue Bonds, 1983 (the "1983
Bonds" ) , and, by Section 12 of that ordinance further modified
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and strengthened the provisions of Section 15 ot Ordinance
No . 1450, as modified by Section 13 of Ordinance No . 3169 ; and
WHEREAS, the City presently has outstanding, in addition to
the 1977 Bonds, Issue No . 3 , and 1983 Bonds, its Water and Sewer
Revenue Bonds, 1985 (the "1985 Bonds" ) , issued pursuant to
Ordinance No . 3896, Water and Sewer Revenue Bonds, 1986 (the
"1986 Bonds" ) , issued pursuant to Ordinarice No . 3970, Water and
Sewer Revenue Bonds, 1987 (the "1987 Bonds" ) , issued pursuant to
Ordinance No . 4068 and Water and Sewer Revenue Bonds, 1988 (the
"1988 Bonds" ) , issued pursuant to Ordinance No . 4157, all of
which bonds were issued on a parity of lien with the 1977 Bonds,
Issue No . 3 ; and
WHEREAS, the parity provisions of Section 13 of Ordinance
No. 3188, which incorporated therein Section 15 of Ordinance
No . 1450, as modified by Section 13 of Ordinance No . 3169, and
as further modified and strengthened by 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. 3 , the 1983 Bonds, the 1985
Bonds, the 1986 Bonds, the 1987 Bonds, the 1988 Bonds and any
bonds issued thereafter and having a charge and lien upon the
revenue of the Waterworks Utility on a parity with those bonds
on compliance at the time of the issuance of such additional
bonds with the following conditions :
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" (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 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 . 3 times the average
annual principal and interest requirements of the bonds of
this issue then outstandirig and of the revenue bonds propose�
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 amourit 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" ;
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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
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System Plan and the 1983 Comprehensive Sanitary Sewer Plan be
made and there be adopted a system or plan of additions to and
betterments and extensions of the Waterworks Utility; and
WHEREAS, the City Council has determined that it is neces-
sary to issue and sell $1, 715, 000 par value of water and sewer
revenue bonds to provide a part of the funds necessary to carry
out the system or plan providing for additions to and better-
ments and extensions of the Waterworks Utility and to pay the
costs of issuance and sale of the water and sewer revenue bonds
provided for herein; and
WHEREAS, the City caused notice of sale of bonds to be
published in the "Daily Journal of Commerce" in Seattle, Wash-
inqton, and specified in that notice of sale that bids would be
received by the City Finance Director until 11 : 00 a .m. on
April 17, 1989 , in his office in the City Hall and two bids were
received; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO
ORDAIN, as follows :
SECTION I . Definitions . 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 llebt Service for the remaining years to the last
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scheduled maturity of the Bonds divided by the number of those
years .
"Bond Fund" shall mean that special fund of the City known
as the 1989 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 $1, 715, 000 par value City of Renton
Water and Sewer Revenue Bonds, 1989 , 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 Washington.
"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 arid charge on the Revenue of the
Waterworks Utility on a parity with tYie lien and charge on 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 to be
operated arid maintained in good repair, working order and
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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. 3 , the 1983 Bonds, the 1985 Bonds, the 1986 Bonds, the 1987
Bonds and the 1988 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" shall mean all the
earnings and revenue received by the Waterworks Utility from any
source whatsoever, including payments received under contract
with other municipal corporations for water service, except
general taxes, charges 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 and/or
Future Parity Bonds identified as such in the ordinance author-
izing 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
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created for the payment of such issue of bonds in accordance
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" shall mean that special fund of
the City into which all of the Revenue of the Waterworks Utility
(except for earnings in any special fund for the redemption of
revenue obligations of the Waterworks Utility) shall be
deposited.
"Waterworks Utility" 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 . Adoption of Plan of Additions and
Betterments . 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 consisting of the improve-
ments, 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,
the acquisition of any easements , rights-of-way and land that
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may be required and the performance of such work as may be
incidental thereto and necessary.
Al1 of the foregoing shall be in accordance with the plans
and specifications therefor prepared by the City' s engineers and
consulting engineers .
The City Council may modify the details of the foregoing
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 is declared to be at least twenty years .
The estimated cost of the acquisition, construction, installa-
tion and financing of the above-described improvements, includ-
ing the costs of issuance and sale of the Bonds, is declared to
be approximately $4 , 020, 537. That cost shall be paid from the
proceeds of the Bonds authorized in this ordinance, proceeds of
grants anticipated to be received by the City and other money of
or received by the City which is made available therefor .
SECTION III . Findinas Reaardina Paritv Provisions . The
City Council finds that all payments required by Ordinances
Nos . 3169 , 3188, 3720, 3896, 3970, 4068 and 4157 for the Out-
standing Parity Bonds have been made into the respective bond
redemption funds and accounts therein for the Outstanding Parity
Bonds, that provision hereinafter is made for the accumulation
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of the amounts required in the Reserve Account of the Bond Fund,
and that there will be on file prior to the issuance and deliv-
ery of the Bonds a certificate of Richard H. Harbert of RH2
Engineering, P. S. , an enqineer experienced in municipal utili-
ties, that the Revenue of the Waterworks Utility is sufficient
to meet the 1. 3 coverage requirement of those ordinances .
SECTION IV. Authorization of Bonds and Acceptance of Bid.
For the purpose of providing a part of the money required to
carry out the system or plan of additions to and betterments and
extensions of the Waterworks Utility, 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 $1, 715, 000, and the City accepts
the bid of and shall sell to Seattle-Northwest Securities
Corporation of Seattle, Washington, all of the Bonds under the
terms and conditions herein set forth.
SECTION V. Descrintion of Bonds . The Bonds shall be
designated City of Renton Water and Sewer Revenue Bonds, 1989
(defined above as the "Bonds" ) ; shall be dated May l, 1989 ;
shall be in the denomination of $5, 000 or any integral multiple
thereof within a single maturity; 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 at the rates set forth below, computed on
the basis of a 360-day year of twelve 30-day months, payable on
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November l, 1989 , and semiannually thereafter on each succeeding
May 1 and November 1 . The Bonds shall bear interest at the
rates and mature on May 1 in years and amounts as follows :
Maturity Interest
Years Amounts Rates
1990 $ 40, 000 6 . 85%
1991 40, 000 6 . 90
1992 45, 000 6 . 95
1993 50, 000 7 . 00
1994 50, 000 7 . 00
1995 55 , 000 7 . 00
1996 60 , 000 7 . 00
1997 65 , 000 7. 10
1998 70, 000 7 . 20
1999 75, 000 7 . 25
2000 80, 000 7 . 25
2001 85, 000 7 . 30
2002 95, 000 7 . 30
2003 100, 000 7 . 40
2004 110, 000 7 . 40
2005 120, 000 7 . 40
2006 125, 000 7 .40
2007 140, 000 7 . 50
2008 150, 000 7 . 50
2009 160, 000 7 . 50
SECTION VI . Reaistration and Transfer of Bpnds . The Bonds
shall be issued only in registered form as to both principal and
interest and recorded on books or records maintained by the Bond
Registrar (the "Bond Register" ) . The Bond Register shall
contain the name and mailinq address of the owner of each Bond
and the principal amount and number of each of the Bonds held by
each owner .
Bonds surrendered to the Bond Registrar may be exchanged
for Bonds in any authorized denomination of an equal aggregate
principal amount and of the same interest rate and maturity.
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Bonds may be transferred only if endorsed in the manner provided
thereon and surrendered to the Bond Registrar . Any exchange or
transfer shall be without cost to the owner or transferee. The
Bond Registrar shall not be obligated to exchange or transfer
any Bond during the fifteen days preceding any principal payment
or redemption date.
SECTION VII . Pavment of Bonds . 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 checks or drafts mailed by the Bond Registrar on the interest
payment date to the registered owners at the addresses appearing
on the Bond Register on the fifteenth day of the month preceding
the interest payment date. Principal of the Bonds shall be
payable upon presentation and surrender of the Bonds by the
registered owners at either of the principal offices of the Bond
Registrar at the option of the 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 the Bond Fund and the
amount of the Revenue of the Waterworks Utility pledged to �hat
fund and shall riot be general obligations of the City.
SECTION VIII . Optional Redemption and Open Market Purchase
of Bonds . Bonds maturing in the years 1990 through 1999 ,
inclusive, shall be issued without the right or option of the
City to redeem those Bonds prior to their stated maturity
dates . The City reserves the right and option to redeem Bonds
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maturing on or after May l, 2000, prior to their stated maturity
dates from funds from any source as a whole at any time on or
after May 1, 1999 , or in part, by lot in such manner as the Bond
Registrar shall determine within one or more maturities selected
by the City, on May l, 1999, or 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 that Bond at either of the
principal offices 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 the same inter-
est rate and maturity in any of the denominations authorized by
this ordinance in the aggregate total principal amount remaining
unredeemed.
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
purchase.
All Bonds purchased or redeemed under this section shall be
cancelled.
SECTION IX. Notice of Redemption. The City shall cause
notice of any intended redemption of Bonds to be given not less
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than 30 nor more than 60 days prior to the date fixed for
redemption by first-class mail, postage prepaid, to the regis-
tered owner of any Bond to be redeemed at the address appearing
on the Bond Register at the time the Bond Registrar prepares the
notice, and the requirements of this sentence shall be deemed to
have been fulfilled when notice has been mailed as so provided,
whether or not it is actually received by the owner of any
Bond. Interest on Bonds called for redemption shall cease to
accrue on the date fixed for redemption unless the Bond or Bonds
called are not redeemed when presented pursuant to the call . In
addition, the redemption notice 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 their successors, to Seattle-Northwest Securities
Corporation, at its principal office in Seattle, Washington, or
its successor, and to such other persons and with such addi-
tional information as the City Finance Director shall determine,
but these additional mailinqs shall not be a condition precedent
to the redemption of Bonds .
SECTION X. Failure to Redeem Bonds . If any Bond is not
redeemed when properly presented at its maturity or call date,
the City shall be obligated to pay interest on that Bond at the
same rate provided in the Bond from and after its maturity or
call date until that Bond, both principal and interest , is paid
in full or until sufficient money for its payment in full is on
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deposit in the Bond Fund and the Bond has been called for
payment by giving notice of that call to the registered owner of
each of those unpaid Bonds .
SECTION XI . Creation of Account and Subaccounts : Deposits
into Accounts . There is created the 1989 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 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 May 1989 , an
amount, together with the accrued interest received on the
delivery of the Bonds to the initial purchaser thereof or other
money on deposit therein, equal to 1/6 of the next ensuing six
months ' requirements for interest and 1/12 of the amount of
principal of the Bonds payable on the next ensuing principal
payment date 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 Water-
works Utility in substantially equal monthly payments such
amounts so that by no later than May l, 1994 , there shall have
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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 that
purpose in addition to or in lieu of using revenue therefor .
The City further agrees that when the required amounts have
been paid into the Reserve Account in the Bond Fund, the City
will maintain those amounts therein at all times, except for
withdrawals therefrom as authorized herein, 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 that 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, the
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 withdrawal shall
then be made up from the Revenue of the Waterworks Utility first
available after making necessary provisions for the required
payments into the Principal and Interest Account .
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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 the money will be needed. Interest
on any of those investments or on that bank account shall be
deposited in and become a part of the Reserve Account until the
total required reserve amount shall have been accumulated
therein, after which time the interest shall be deposited in the
Principal and Interest Account .
Notwithstanding the provisions for the deposit or mainten-
ance 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 brinq an action against the City to compel
that setting aside and payment .
SECTION XII . Flow of Funds . Funds in the Waterworks
Utility Fund (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;
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(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 iriferior 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 or for any other lawful City
purpose.
SECTION XIII . Pledae of Revenue and Lien Positipn. The
Revenue of the Waterworks Utility is pledged to the payments set
forth in Section XI , and the Bonds shall constitute a lien and
charge on that revenue prior and superior to any other charges
whatsoever, excluding Maintenance and Operation Expense, except
that the lien and charge on 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.
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SECTION XIV. Findinas Reaardina Sufficiencv of Revenue.
In the judgment of the City Council, the Revenue of the Water-
works Utility and benefits to be derived from the operation and
maintenance of the Waterworks Utility, at the rates to be
charged for water, sanitary sewage disposal service and storm
and surface water drainage service in the entire utility, will
be more than sufficient to meet all Maintenance and Operation
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 that 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 mainten-
ance and operation as used in RCW 35 . 92 . 100) and the debt
service requirements of the presently outstanding 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 propor-
tion of the revenue of that utility than in the judgment of the
City Council will be available over and above Maintenance and
Operation Expense (and such costs of maintenance and operation)
and debt service requirements of the Outstanding Parity Bonds
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and that no portion of the Revenue of the Waterworks Utility has
been previously pledged for any unrefunded indebtedness other
than the payment of the presently outstanding Outstanding Parity
Bonds .
SECTION XV. Covenants . 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 anrival 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. "Average annual debt service requirements"
shall mean the aggregate amount of principal and
interest payable in each year over the remaining life
of such Outstanding Parity Bonds and Bonds divided by
the number of maturity years remaining to the last
maturity of the longest maturing issue, being the
year 2009 .
(b) It will at all times maintain and keep the
Waterworks Utility in good repair, workirig 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 unless provision is made for
payment into each of the respective bond redemption
funds or accounts for the Outstanding Parity Bonds
and the Bond Fund of sums sufficient to pay, respec-
tively, the principal of and interest on all Out-
standing Parity Bonds and the Bonds at any time
outstanding, and that it will not sell , lease,
mortgage, or in ariy manner encumber or dispose of any
part of the property of the Waterworks Utility that
is used, useful and material to the operation
thereof, unless provision is made for replacement
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' ` ORDINANCE N0. 4211
thereof, or for payment into the respective bond
redemption funds or accounts for the Outstanding
Parity Bonds and the Bond Fund of the total amount of
revenue received which shall not be less than an
amount which shall bear the same ratio to the amount
of the Uutstanding Parity Bonds and Bonds, respec-
tively, as the revenue available for debt service for
such outstanding bonds for the twelve months preced-
ing such sale, lease, encumbrance or disposal from
the portion of the utility sold, leased, encumbered
or disposed of bears to the revenue available for
debt service for such 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 remain
outstandinq keep proper and separate accounts and
records in which complete and separate entries shall
be made of all transactions relating to the Water-
works Utility, and it will furnish the original
purchaser or purchasers of the Bonds or any subse-
guent owner or owners thereof at the written request
of such owner or owners complete operating and income
statements 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
grant 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 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.
(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 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 maintaininq such utility. If, as,
and when the United States of America or some agency
thereof shall provide for war risk insurance, the
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' � ORDINANCE N0. 4211
, �
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 outstandirig Bonds,
and otherwise meet the obligations of the City as
herein set forth.
(h) It will take all actions necessary to
prevent interest on the Bonds from beinq 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 treated as proceeds of the Bonds at any time
during the term of the Bonds which will cause inter-
est on the Bonds to be included in gross income for
federal income tax purposes . The City also covenants
that, if all gross proceeds of the Bonds have not
been spent within six months after the date of
issuance of the Bonds, it will calculate, or cause to
be calculated, and rebate to the United States all
earnings from the investment of gross proceeds of the
Bonds that are in excess of the amount that would
have been earned had the yield on those investments
been equal to the yield on the Bonds, plus all income
derived from those excess earnings, to the extent and
in the manner required by Section 148 of the United
States Internal Revenue Code of 1986, as amended (the
"Code") , and applicable regulations . If the City
fails to meet rebate requirements applicable to the
Bonds under Section 148 of the Code, the City cove-
nants that, to the extent permitted by that Section,
it will pay the penalty provided in
Subsection 148(f) (7) (C) if required to prevent
interest on the Bonds from being included in gross
income for federal income tax purposes .
The City certifies that it has not been notified of any
listing or proposed listing by the Internal Revenue Service to
the effect that it is a bond issuer whose arbitrage certifica-
tions may not be relied upon.
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' � ORDINANCE N0. 4211
SECTION XVI . Form and Execution of Bonds . The Bonds shall
be printed or lithographed on good bond paper in a form consis-
tent with the provisions of this ordinance and state law, shall
be signed by the Mayor and City Clerk, either or both of whose
signatures may be manual or in facsimile, and the seal of the
City or a facsimile reproduction thereof shall be impressed or
printed thereon.
Only Bonds bearing a Certificate of Authentication in the
following form, manually signed 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,
1989, described in the Bond Ordinance.
WASHINGTON STATE FISCAL AGENCY
Bond Registrar
By
Authorized Officer
The authorized signing of a Certificate of Authentication shall
be conclusive evidence that the Bonds so authenticated have been
duly executed, authenticated and delivered and are entitled to
the benefits of this ordinance.
If any officer whose facsimile signature appears on the
Bonds ceases to be an officer of the City authorized to sign
bonds before the Bonds bearing his or her facsimile signature
- 23 -
` ' ORDINANCE N0. 4211
are authenticated or delivered by the Bond Registrar or issued
by the City, those Bonds nevertheless may be authenticated,
delivered and issued and, when authenticated, issued and deliv-
ered, shall be as binding on the City as though that person had
continued to be an officer of the City authorized to sign
bonds . Any Bond also may be signed on behalf of the City by any
person who, on the actual date of signing of the Bond, is an
officer of the City authorized to sign bonds, although he or she
did not hold the required office on the date of issuance of the
Bonds .
SECTION XVII . Bond Reaistrar . 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 be open to inspection by the City at all
times . The Bond Registrar is authorized, on behalf of the City,
to authenticate and deliver Bonds transferred or exchanged in
accordance with the provisions of the Bonds and this ordinance,
to serve as the City' s paying agent for the Bonds and to carry
out all of the Bond Registrar ' s powers and duties under this
ordinance and City Ordinance No. 3755 establishing a system of
registration for the City' s bonds and obligations .
The Bond Registrar shall be responsible for its representa-
tions contained in the Bond Registrar ' s Certificate of Authenti-
cation on the Bonds . The Bond Registrar may become the owner of
Bonds with the same rights it would have if it were not the Bond
- 24 -
' ' ORDINANCE N0. 4211
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 XVIII . Bonds Neaotiable. The Bonds shall be
negotiable instruments to the extent provided by RCW 62A. 8-102
and 62A. 8-105 .
SECTION XIX. Advance Refundina or Defeasance of Bonds . In
the event the City shall issue advance refunding bonds pursuant
to �he laws of the State of Washington, 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 outstanding Bonds and to
pay the costs of refunding or defeasance, and shall have irre-
vocably set aside for and pledged to such payment, refunding or
defeasance, money and/or direct obligations of the United States
of America sufficient in amount, together with known earned
income from the investment thereof, to make such paymerits and to
accomplish the defeasance or refunding as scheduled (hereinafter
called the "trust account" ) and shall make irrevocable
provisions for redemption of such Bonds , then in that case the
Bonds shall be deemed defeased (hereinafter collectively called
tYie "defeased Bonds" ) . Thereafter, all right and interest of
the owners of the defeased Bonds in the covenants of this
- 25 -
� ' ORDINANCE NO. 4211
ordinance, in the Revenue of the Waterworks Utility and in funds
and accounts obligated to the paymerit of such Bonds shall cease
and become void, except such owners shall have the right to
receive payment of the principal of and interest on the defeased
Bonds from the trust accourit 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 principal of and
interest on the defeased Bonds from the Revenue of the
Waterworks Utility 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 the 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
cash and/or direct obligations of the United States of America
or other legal investments pending the prior redemption of those
Bonds being refunded and if such refunding plan also provides
that certain cash and/or direct obligations of the United States
of America or other legal investments are pledged irrevocably
for the prior redemption of those Bonds included in the
- 26 -
' ' ORDINANCE N0. 4211
refunding 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 XX. Provision for Future Paritv Bonds . The City
reserves the right to issue Future Parity Bonds which will
constitute a lien and charge on the Revenue of the Waterworks
Utility on a parity with the Outstanding Parity Bonds and the
Bonds if the conditions set forth in Section 13 of Ordinance
No . 3188, as modified and strengthened by Section 12 of
Ordinance No. 3720, are met and complied with at the time of the
issuance of those 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 XXI . Denosit of Bond Proceeds . 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 "Construction Fund" ) . The City
Finance Director shall deposit the good faith deposit of
Seattle-Northwest Securities Corporation (the "Purchaser" ) in
the Construction Fund, and that deposit shall remain intact
until delivery of the Bonds to the Purchaser but may be invested
- 27 -
' ' ORDINANCE NO. 4211
in any legal investment and the investment income may be
retained in that fund and used for the purposes of the fund.
The principal proceeds received from the issuance and sale of
the Bonds shall be deposited in the Construction 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 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 the principal proceeds out of
the Construction Fund, the money in that fund may be invested in
any legal investment and the investment income may be retained
in that fund and used for the purposes of the fund, except that
earnings subject to a federal tax or rebate requirement may be
withdrawn from the Construction Fund for those tax or rebate
purposes . The accrued interest on the Bonds, if any, received
at the time the Bonds are delivered to the Purchaser shall be
deposited in the Bond Fund.
SECTION XXII . Ratification of Public Sale of Bonds and
Notice of Sale. The City Council approves and confirms the
Notice of Sale of the Bonds published in the "Daily Journal of
Commerce" of Seattle, Washington, and the Notice of Sale of the
Bonds as published in the Preliminary Official Statement and
published in connection with the Bonds by Seattle-Northwest
Securities Corporation, the City' s financial consultant .
- 28 -
' ' ORDINANCE N0. 4211
SECTION XXIII . Printina and Deliverv of Bonds . The
officers of the City are directed to have the Bonds printed and
authenticated immediately. The Bonds shall be delivered to the
Purchaser pursuant to its bid upon payment therefor at the price
bid, plus accrued interest from the date of the Bonds to their
date of delivery. In connection therewith, a certified copy of
the transcript of proceedings pertaining to the issuance of the
Bonds shall be furnished to Foster Pepper & Shefelman so that
their approving legal opinion may be obtained for delivery to
the Purchaser in compliance with the requirements of the Notice
of Bond Sale and of the bid.
Bond counsel shall not be required to review and shall
express no opinion concerning the completeness or accuracy of
any offical 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, including the execution of the
Official Statement on behalf of the City, and for the proper
application and use of the proceeds thereof .
SECTION XXIV. Temporarv Bond. Pendirig the printing,
execution and delivery to the Purchaser of definitive Bonds, the
City may cause to be executed and delivered to the Purchaser a
single temporary Bond in the total principal amount of the
- 29 -
` ` ORDINANCE N0. 4211
, •
Bonds . The temporary Bond shall bear the same date of issuance,
interest rates, principal payment dates and terms and covenants
as the definitive Bonds, shall be issued as a fully registered
Bond in the name of the Purchaser, and otherwise shall be in a
form acceptable to the Purchaser . The temporary Bond shall be
exchanged for definitive Bonds as soon as they are printed,
authenticated and available for delivery.
SECTION XXV. Ratification and Confirmation. All actions,
includinq the publication by the City Finance Director of the
Notice of Sale of the Bonds and the return of the good faith
deposits to the unsuccessful bidders, heretofore taken by the
City or on its behalf and consistent with the provisions of this
ordinance are ratified and confirmed.
SECTION XXI . Effective Date of Ordinance. This ordinance
shall be effective upon its passage, approval and five days
after publication
PASSED by the City Council this 17th day of April, 1989 .
� � G:�A=-�6'�/
Maxine E. Motor, Cit1� Clerk
APPROVED BY THE MAYOR this 1 day of April, 1�£39 .
�►_�.�t \����n�A`
Earl Clymer, ��or
Approved as to Form:
� ���..�
, v A ril 21 1989
Date of Fublication: P �
2475r
- 30 -
t t
• `
EXHIBIT A
Water Svstem Improvements-Maior
Comprehensive Plan Update
S. Talbot Reservoir and Pipeline
Lind Avenue Uridercrossing
Lind Avenue Bridge Approach
Well Field Protection
Water Quality Investigation
Maplewood Wells #10 and #11
Springbrook Water Shed Acquisition
Sanitarv Sewer Utilitv Improvements
Renton Highlands Sanitary 5ewer
Earlington Hill Sewer Pump
Storm Drainaae Im�rovements-Maior
P-1 Box Culvert Under I-405
Comprehensive Plan
Panther Creek Acquisition
Small Drainage Improvements
Oakesdale SW/SCS Grant and 50% Match
Reimburse Operating Fund/Soft Capital
Operating Equipment
2475r/33