HomeMy WebLinkAboutORD 3169 !
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CITX OF RENTON, WASHINGTON
ORDINANCE PdO. 3169
AN ORUINANCE providing for the issuance of
$800,000 par value of "City of Renton Water and
Sewer Revenue Refunding Bonds, 1977, Issue No. 2, "
for the purpose of obtaining a part of the funds
with which to refund, pay and retire the outstanding
"City of Renton Water and Sewer Revenue Bonds, 1954,"
"City of Renton Water ana Sewer Revenue �3onds, 1965, "
and "City of Renton Water and Sewer Revenue Refunding
Bonds, 1965, " of the City; fixing the date, form,
cienomination, maturities, interest rates, terms and
covenants of such refunding bonds; creating a special
fund to provide far the refunding operation; creating
a special bond redemption �und to provide for �he
payment of the refunding bonds; providing for and
authorizing the purchase of certain obligations out
of the proceeds of the sale of such refunding bonds
and other money of the City and for the use and
a�p�.ication of the money to be derived from such
investment; providing for the payment and redemption
of the outstanding bonds to be refunded; and confirm-
ing the sale and providing for the delivery of the
refunding bonds to Seattle--Northwest Securities
Corporation of Seattle, Washington.
WHEREAS, by Ordinance No. 1156, .as amended by Ordinances
Nos. 1157 and 1173, the sewerage systein of the City of Renton
(hereina�ter called the "City" ) has become and is considered a part
of the waterworks utility of the City; and
WHEREAS, the City heretofore issued undez date of March 1,
1953, $35,000 par value of "City of Renton Water and Sewer Refunding
and Improvement Revenue Bonds, 1953," pursuan.t to Ordinances Nos .
1�50 and 1452; and '
WHEREAS, by Section 15 of said Ordinance No. 14.50, the
City reserved the right to issue additional water and sewer revenue
bonds, which would constitute a charge and lien upon the revenues
of the waterworks utility, including the se�aerage system as a part
thereof, on a parity with the then outstanding "City of Renton
Water and Sewer Refunding and Improvement Revenue Bonds, 195�3," on
compliance with the following conditions at the time of the issuance
of such additional bonds:
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' " (A) All payment:� required by this ordinance to
be paid into the 'Rsnton 1953 Water and Sewer
Refunding and Impro�ement Revenue Bond Fund' shall
have been made; and
" (B) The revenue:� of said waterworks system,
including the sewer<�.ge system, shall be and be
deemed suffi.cient, ��fter the payment of operation
and maintenance cos-�ts�:and taxes, based upon the
historical experienae o� said sytems or the pro
forma revenues unde�: then existing rates over a
period of any twent��--four cor�secutive months out
of the thirty-six mc�nths 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 ��utstanding and of the revenue
bonds proposed to bE� so issued. Such determination
of the sufficiency��<�f the revenues shall be made and
certified to by an E�ngineer experienced in municipal
utilities; and
" (C) The Ordinanre authorizing the issuance of
such additional revE:nue bonds sha11 provide for the
setting aside into �� reserve fund or account of an
amount not less thail the average annual debt service
requirement, both p�.incipal and interest of the
additional revenue }�onds proposed to be so issued,
which reserve fund or account shall be maintained
in such amount so �ong as any of said bonds are
outstanding to the :l.ast maturity thereof" ;
and
WHEREAS, the City- tliereafter issued under date of September 1,
195�, $325, Q00 par value of "c�ity of Renton Water and Sewer Revenue
Bonds, �.954," pursuant to Ord:Lnance I3o. 1489, and, under date of
July 1, 1959, $750, 000 par va:lue of "City of Renton Water and Sewer
Revenue Bonds, 1959 ," pursuani� to Ordinance PJo. 1766, and, under date
of P�tay 1, 1965, $500,0,00 par ��alue 4� "City o� Renton Water and
Sewer Revenue Bonds, 1965," plzrsuant to Ordinance No. 2151, and, I
under date of December 15, 1965, �545,000 par value of "City of
Renton Water and Sewer Revenue Refunding Bonds, 1965," pursuant to
Ordinance No. 2195, for the ptxrpose of refunding, redeeming and
retiring on July l, 1974, all of the then outstanding "City of Renton
Water and Sewer Revenue Bonds„ 1959," and under date of July 1, 1975,
$3,000,000 par value of "City of Renton Water and Sewer Revenue
Bonds, 1975," pursuant to Ord_�nance No. 2930, and under date of
February l, 1976, $2 ,950 ,000 ��ar value of "City of Renton Water and
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� Sewer Revenue Refunding Bonds, 1976," pursuant to Ordinance No.
3007, for the purpose of refunoing, redeeming and retiring on
January l, 1989, and July� 1, 1989, all of the then outstanding
"City of Renton Water and Sewer� Revenue Bonds, 1975, " and under
date of June 1, 1977, $3,095, 000 par value of "City of Renton Water
and Sewer Revenue Refunding -Bonds, 1977" (hereinafter called the
"1977 Bonds") , pursuant to Ordinance No. 3141, as amencied by
Ordinance No. 3145, for the purpose of providing a part of the
money required to pay the principal o� and interest on the "City
of Renton Water and Sewer Revenue Refunding Bonds, 1976, " coming due
to and including July l, 1989, and to redeem and retire on July l,
1989 , the outstanding "City`of Renton Water and Sewer Revenue
Refunding Bonds, 1976," numbered 96 to 590, inclusive, maturing
f rom Ju1y 1, 199Q, to July 1, 2000, a.nclusive, all of which bonds were
issued on a parity of lien with said then outstanding "City of Renton
Water and Sewer Refunding and I:mprovement Revenue Bonds, 1953," and
with each other pursuant to the provisions of Section 15 of said
Ordinance No. 1450, said parity� issues of bonds being a first lien
and charge upon the gross reven�ues from the combined water and
sewerage systems of the City, ,e:�cluding- charges for maintenance and
operation, except that a11 of s.�id "City of Renton Water and Sewer
Refunding and Improvement Reven�ae Bonds, 1953," have now been paid
and retired, and except the con3itions of subparagraph (B) of said
Section 15 were modified by Section 12 of Ordinance No. 293Q pertaining
to the outstanding "City of Ren��on Water and Sewer Revenue Bonds,
1975, " as to any parity bonds i:�sued in the future, and the City by
Section l� of Ordinance No. 314:1 reserved the right to issue Future
�arity Bonds (as therein definec�) which will constitute a lien and
charge upon the gross revenues c�f the 6Vaterworks Utility of the
City (as therein defined) on a ��arity with the Outstanding Parity
Bonds (as therein defined, beinq the the "City of Renton Water and 'I
Sewer Revenue Bonds, 1954, " "Cit:y of Renton Water and Sewer Revenue
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` Bonds, 1965," and "City of Renton Water and Sewer Revenue
Refunding Bonds, 1965" ) and the "City of Renton Water and Sewer
Revenue Bonds, 1975," provided the cond.itions set forth in Section
15 of Ordinance No. 1450 are met and complied with at the time of
the issuance of such Future Parity Bonds, which section was by such
reference incorporated in Ordinance No. :3141 and made a part
thereof and shali continue to be applicable even though the "City
of Renton Water and Sewer Refunding and Improvement Revenue Bonds,
1953," have been paid and retired; and
WHEREAS, there are presently outstanding $219 ,000 principal
amount of "City of Renton Wat�r and Sewer Revenue Bonds, 1954"
(hexeinafter called the "1954 Bonds" ) maturing serially on September 1
of each of the years 1.978 thr��ugh 19�4, a part of which bonds bear
interest at the rate of 2.75% per annum and the remainder of which
bonds bear interest at the ra-�e of 2. 80o per annum; and
WHEREAS, there are j�resently outstanding $30Q,000 principal
amount of "City of Renton Watsr and Sewer Revenue Bonds, 1965"
(hereinafter called the "1965 Bonds") , maturing serially on May 1
of each of the years 1978 thrc�ugh 1989 , a part of which bonds bear
interest at the rate of 3.50o per annum and the remainder of which
bonds bear interest at the rai�e of 3.6Qo per annum, except the
final May l, 1989, maturity �bc�nds bear interest at the rate of
O .lOa per annum; and
WHEREAS, there are presently outstanding $475,000 principal
amount of "City of Renton WatE:r and Sewex Revenue Refunding Bonds,
1965" (hereinafter called the "1965 Refunding Bonds" ) maturing
serially on June 1 of each of the years 1978 through 1988, all of
which bonds bear interest at the rate of 3.90% per annum; and
WHEREAS, after due consideration it appears to the City
Council that all of the outst��nding 1954 Bonds, 1965 Bonds and
1965 Refunding Bonds may be rE�funcled by providing funds for the
payment of the principal of ar�d interest on the such outstanding I
bonds as the same respectivel��-�become due by the issuance and sale
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of refunding bonds so that a substantial saving will be effected
by the difference between the principal and interest cost over the
life of the refunding bonds (there being a substantial reduction
in principal) and the principa.l and interest cost over the life of
such outstanding 1954 Bonds, 1.965 Bonds and 1965 Kefunding Bonds;
and
WHEREAS, in order to effect such refunding in the manner
that will be most advantageous to the City and its taxpayers, it is
hereby found necessary and advisable that certain "Acquired
Obligations" (hereinafter identified) bearing interest and maturing
at such time or times as necessary to pay the principal of and
interest on the 1954 Bonds, th.e 1.965 Bonds and the 1965 Refunding
Bonds, respectively, as- the same shall become due be purchased out
of the proceeds of the sale of the refunding bonds herein authorized
(hereinafter called the "Refunding Bonds") and other money of the
City legally available therefor; and
WHEREAS, the City Council hereby finds that all payments
required by Ordinance No. 3141 for the outstancling 1977 Bonds have
been made into the bond redemption fund for such outstand,ing 1977
Bonds; that provision is hereinafter made for the accumulation
of the additional amounts required in the "Reserve Account" in
the bond fund for the Refunding Bonds; and that �,,,,.f;,�,�w {,� Th�rr�as
Q^ r.'�Yl�7l PY F+'.11lT1 Tl PPYQ _ TYl r� / a�
engineer experienced in municipal utilities, will certify, after
taking into consideration the fact that after the issuance of the
Refunding Bonds no debt service on the 1954 Bonds, 1965 Bonds and
1965 Refunding Bonds will be paid from the revenues of the combined
I water and sewerage systems of the City, that said revenues are
sufficient to meet the 1.5 coverage requirement and prior to the
issuance and delivery of such Refunding Bonds his certificate to
such effect must be on file with the City Clerk; NOW, THEREFOHE,
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� � THE CITY COUNCIL Ol.a THE CITY OF RENTON, WASHING^lON, DO
ORDAIN, as follows:
Section l. As useci in this ordinance the following words
shall have the following meanings:
(a) "Bond Fund" shall mean that special fund of the
City known as the "Renton 19'l7 Water and Sewer Revenue Refunding
Bond Redemption Fund No. 2," created by this ordinance for the payment
of the principal of and inter.est on the Refunding Bonds.
(.b) "1977 Bonds" shall mean the $3, 0,95,000 par value of
"City of Renton Water and Sewer Revenue Refunding Bonds, 1977, "
issued under date of June 1, 1977, pursuant to Ordinance No. 3141.
(c) "City" shall niean the City of Renton, Washington, a
dul.y organized and existing noncharter code city under the laws of
the State Af Washington.
(d) "Future Parity Bonds" shall mean all water and sewer
revenue bonds of the City���issued after the date o� the issuance of
the Refundi.ng Bonds and havirig a lien and charge upon the Revenue
of tY�e Wat�rworks Utility o� the City on a parity w�th the lien and
charge upon such gross revenues for the 1977 Bonds and the Refunding
Bor�ds for the payment of the principal thereof and interest thereon.
(e) "Outstanding F�onds" shall when used hereinafter be
deemed to collectively incluc�e all of the outstanding "City of Kenton
Water and Sewer Revenue Bond��, 1954" (herein called the "1954 Bonds" ) ,
issued under date of 5epteznber 1, 1�54, pursuant to Ordinance No.
' 148�, the outstanding "City uf Renton Water and Sewer Revenue Bonds,
1965 (herein called the "196�� Bonds") , issued under date of Nlay l,
� 1965, pursuant to Ordinance No. 2151, and the outstanding "City of
Renton Water and Sewer RevenL�e Refunding Bonds, 1965" (herein called
the "1965 Refunding Bonds") , issued under date of December 15, 1965,
�ursuant to Ordinance No. 2195.
(f) "Principal and. Interest Account" shall mean the
account of that name created in the 3ond Fund by this ordinance for
the payment of the principal of and interest on the Refunding Bonds.
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� • , ` r(.g� "Re funding Bond:�" shall mean the "City of Renton
Water an.d Sewer Revenue Refund�ng Bonds, 1977, Issue No. 2, "
authorized to be issued by thi:� ordinance.
(h) "1977 Refunding Fund" shall mean the fund of that
name created by this ordinance to provide for the refunding operation.
(i) "Reserve Accoun��" shall mean the account of that name
created in the Bond Fund by th:is ordinance for the purpose of securing
the payment of the principal o:E and interest on the Refunding Bonds.
(j) "Revenue of the Waterworks Utility of the City" shall
mean all the earnings and revenue received by the Waterworks Utility
of the City frorn any source wh�tsoever, 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, and bond proceeds.
(k) "Waterworks Utility of the City" shall mean the
comb�.ned water and seHterage systems of the City as the same may be
added to, .improved and extended for as long as any of the 1977
Bonds, the Refunding Bonds and any Future Parity Bonds are
outstanding.
Section 2 . For the purpose of provzding a part of the
money required to pay the principal of and interest (a) on the
1954 Bonds coming due to and including September l, 1984, (b) on ;
the 1965 Bonds coming due to and including May 1, 1989, and (c) on
the 1965 Refunding Bonds comin.g due to and including June 1, 1988
(herein collectively called th,e "Outstanding Bonds") , the City
shal.l issue tl�e Refunding B.ond,s .in the aggregate principal amount
o� $800, 0.00 ..
The Refunding Bonds shall be designated "City of Renton
Water and Sewer Revenue Refund,i.ng Bonds, .1977, Issue No. 2" (herein
defined as the "Refunding Bonc�.s") ; shall be dated November 1, 1977;
shall be in denominations of $5 ,000 each; shall bear interest at the
rates hereinafter set forth, payable on July l, 1978, and semiannually
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thereafter on the first days �f January and July of each year,
interest to maturity being evidenced by coupons to be attached to
the Refunding Bonds with full obligation on the part of the City to
pay interest at the bond rate from and after the bond maturity
dates until the Refunding Bonds with interest are paid in full
or funds sufficient to pay such Refunding Bonds with interest in
full are on deposit in the Bo�zd Fund hereina�ter referred to and
the Refunding Bonds have been duly--called for redemption. The
Refunding �onds shall be numbered, shall bear interest and shall
mature on January 1 of each year as follows:
Bond Numbers Interest
(Inclusive) Amounts Rates Maturities
1 to � $ 25,OQ0 S.OQo January 1, 1979
6 to 19 70,000 5. 00% January 1, 1980
20 to 33 70,OOQ 5.00% January l, 1981
34 to 48 75,000 5 .00o January l, 1982
49 to 64 80,000 5. 00% January l, 1983
65 to 80 8Q,OOQ 5. 00o January 1, 1984
81 ta 1Q0 100,OQ0 5 .10% January l, 1985
lpl to J.2Q 100,000 5 .20% January 1, 1986
121 to 14Q 1QQ,OQO S.25o January 1, 1987
141 to 160 100,000 5 .3Qo January 1, 1988
�oth principal of and interest on the Refunding Bonds shall
be payable in la�,rful money of the United States of America at the
office of the Director of Finance of the City, or, at the option of
the holder, at either fiscal ��gency of the 5tate of Washington in
the Cities of Seattle, Washinc�ton, or New York, New York, solely
out of the Bond Fund, and sha7_1 be a� valid claim of the holder
thereof only as against such �3ond Fund and the amount of the Revenue
of the Waterworks Utility of the City pledged to such fund, and
shall not be a general obligai:ion of the City.
Section 3. The Cit�� reserves the right to redeem the
Refunding Bonds as a tirhole, or in part in inverse numerical order,
from money derived from any source at the following percentages
of par, if redeemed at the fo�.lowing times, plus accrued interest
to date of redemption in each case:
On January 1, 1986, and July l, 1986, at 101a
On January 1, 1987, and July 1, 1987, at 100-1/20
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�, � 'Notice of such inten.ded redemption shall be given by
publication thereof in the official newspaper of the City at least
once not less than 30 nor more than �k5 days prior to the call date.
Written notice shall also be given to Seattle-Northwest Securities
Corporation, or its successor, at its principal office in Seattle,
Washington, within the same period. In addition, such redemption
notice shall also be sent to Moody's Investors Service, Inc. , and
Standard & Poor's Corporation, at their offices in New York, I�Tew
York, but the mailing of such notice to such corporations shall not
be a condition precedent to the redemption of such Refunding Bonds.
Interest on any Refunding Bonds so cal7.ed for redemption
shall, cease on the date fixed for such redemption upon payment of
the redemption price i.nto the Bond Fund.
The City reserves-•the right to purchase any or all of the
Refunding Bonds in the open rnarket at an,y time at a price not in
excess of 101% of the par value if purchased prior to January 1, 1987,
and thereafter not in excess of the call price applicable at the
time of such purchase. •
Section 4. There is hereby created and established in
the office of the Director of Finance of the City a special fund
to be known and designated as the "Renton 1977 Water and Sewer
Revenue Refunding �ond Redemptiori Fund No. 2" (herein defined as
the "Bond Fund") , which fund is to be drawn upon for the sole purpose
of paying the principal of and interest on the Refunding Bonds from
and after the date thereof. Such fund is hereby divided into two
accounts, namely, a Principal and Interest Account and a xeserve
Account. There is hereby-�•also created and established in such office
another special fund to be kno�,an and designated as the 1977 Refunding
Fund. Immediately upon receip�t of payment in full for the Refunding
Bonds, the accrued interest received, if any, shall be deposited in
the Principal and Interest Acc��unt in the Bond Fund. The principal
proceeds received shall be dep��sited in the 1977 Refunding Fund in
an amount equal to the accrued interest on the 1954 Bonds, 1965 Bonds
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� and 1965 Refunding Bonds from the last interest payment dates of
each of such bonds to the contemplated date of delivery of the
Refunding Bonds to the purchaser thereof and principal and reserve
account accumulations in the respective bond redemption funds for
such bonds, aggregating $110,000.00, shall be transferred from the
principal and interest accounts and reserve accounts in the respective
bond redemption funds for such bonds to the 1977 Refunding Fund. The
money in the 1977 Refunding Fu:�nd shall be used immediately upon the II
receipt thereof to discharge t�ze o}aligations of the City under
Ordinance No. 1489 passed and approved July 27, 1954, authorizing
� the issuance of the 1954 Bonds , under Ordinance No. 2151 passed and
approved April 26, 1965, autho�_izing the issuance of the 1965 Bonds
and under Ordinance No. 2195 p��ssed and approved December 6 , 1965,
authorizing the issuance of th�: 19�5 Refunding Bonds, by providing !
for the payment as hereinafter set forth in this section of the
�xincipal of and interest on tY�e putstanding �on,ds. To the extent
practicable the City shall disr.harge such obligations by the purchase
of u. s . TRFASTiRY nT(1TF� 1I1C� UI11'teC�
States Treasury Certificates of` Indebtedness, Notes and Bonds -
state and local government seri.es (commonly called "book entry"
obligationsj ("Acquired Obligat:ions" ) bearing such interest and
maturing as to principal and in,terest in such amounts and at such
times so as to provide for the payment of the principal of and interest
on the Outstanding Bonds as the same become due and payable up to
the final maturity thereof. Such "Acquired Obligations" are more
particularly described in Schedule "A" attached as an exhibit to
the Agreement hereinafter referred to and attached hereto as
Exhibit "A. "
Such "Acquired Obligations" and a beginning cash balance
of $9, 348 . 43 shall be irrevocably deposited with Peoples
National Bank of Washington, Seattle, Washington (hereinafter called
the "Refunding �'rustee" ) . An.y �mounts described in this section
whi�h are not providecl for in f�rall by the purchase and deposit of
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the "Acquired Obligations" described in this section shall be
provided for by the irrevocab�e deposit of a portion of the proceeds
' of sale of the Refunding Bond:� or other money of the City with
� the aforesaid Refunding TrustE:e.
The beginning cash ��alance deposited with the Refunding
Trustee and al.l the money received as principal of and interest
on such "Acquired Obligations" shall be held by the Refunding
Trustee for the credit of the City for the 1977 Refunding Fund, �
and shall be held in trust and shall be used for the sole purpose
of paying the principal of and, interest becoming due on the
Outstanding Bonds up to and in.cluding the final maturity thereof, �
as herein provided.
Any money remaining in the 1977 Refunding Fund after the
�ayment and retirement in full of the Outstanding Bonds as aforesaid
shall be transferred and paid into the Principal and Interest
Account in the Bond Fund. �11 0� such "Acquired Obligations"
purchased as a part of the refunding plan are irrevocably dedicated
to the purpose set forth in this ordinance, and such investments
or the earni.r�gs or the proceeds therefrom may be used for no other
purpose, r�or may any of such i:nvestnients be liquidated prior to
maturi�y.
Section 5. The Refu:nda.ng Trustee is hereby authorized
and directed to pay the princi,aal of and interest on the Outstanding
Bonds when due from the "Acqui:red Obligations" and money deposited
with the Refunding Trustee pur;suant to Section 4 of this ordinance.
Al1 "Acquired Obligations" and the money deposited with the �
Refunding Trustee and any income therefrom shall be held and applied
in accordance with the provisians of each applicable bond ordinance
pertaining to each issue of the: Outstanding Bonds and this ordinance
and with the statutes of the S{:ate of Washington.
All necessary and proper fees, compensation and expenses
of the Refunding Trustee for trie Refunding Bonds and all other
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� costs incidental to the setting up of the escrow to accomplish
the refunding of the Outstand:ing Bonds, including but not limited
to an allocable portion of bo�.id counsel 's fees chargeable to such
escrow (600) and an escrow computation fee to Seattle-Northwest
Securities Corporation, shall be paid out of the principal proceeds
of the Refunding Bonds. The c:osts relating to the issuance and
delivery of the Refunding Boncis, including bond printing and an
allocable portion of bond cour.�sel 's fees chargeable to the preparation I
� of the legal proceedings and furnishing an approving legal opinion
covering the Refunding Bonds (400) , shall be paid by Seattle-
Northwest Securities Corporati.on as purchaser of the Refunding
Bonds. The proper officers an.d agents of the City are directed
to obtain from the Refunding �'rustee an agreement setting forth
the duties, obligations and responsibilities of the Refunding
Trustee in connection with the. redemption and retirement of the
Outstandir�g Bonds as provided herein and stating that such provisions
and the payment of the fees, ,compensation and expenses of such
Refunding Trustee are sat�.sfactory to it.
zn order to carry out the purposes of this ordinance,
the Mayor and City Clerk of the City are authorized and directed
to execute and deliver to Peoples Plational Bank of Washington,
Seattle, Washington, an agreement substantially in the form attached
hereto marked Exhibit "�," and :by this reference thereto made a part
of this ordinance.
Section 6 . So long �.s Refunding Bonds are outstanding
against the Bond Fund, the Director of Finance of the City -shall
set aside and pay into the Principal and Znterest Account in such
fund out of the Revenue of the Tniaterworks Utility o� the City a
f ixed amount, without regard t<� any fixed proportion, namely,
monthly, on or before the firsi� day of each month beginning with
the month of December, 1977, an amount, together with the accrued
interest received, equal to 1/lth of the amount of interest payable
on the Refunding Bonds on July 1, 1978, and thereafter 1/6th of
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' the next ensuing six months ' r�equirements for interest, and
beginning with the month of Fe:�ruary, 1978, 1/12th of the next
ensuing twelve months ' requirements for principal on the Refunding
Bonds and continuing thereafte:r until the Refunding Bonds, both
principal and interest, are pa:i.d in full.
Section 7. The Dire�:tor of Finance of the City is
hereby authorized and directed further to set aside and pay into
the Resexve Account in the Bond Fund out of the Revenue of the
Waterworks Utility of the City in substantially equal monthly
payments such amounts so that by no later than November 1, 1982,
I there shall have been accumulat-ed in the Reserve Account in the
', Bond Fund for the Refunding Borids an amount not less than the
avearage annual principal and iriterest requirements for the Refunding
Bonds.
�he Reserve Account i.n the Bond Fund may be accumulated
from any other money which the City may have available for such
purpose in addition to using sL�ch Revenue there�or.
�The City further agre:es that when said required amounts
have been paid into the ReservE Account a.n the Bond Fund, it will
at all times, except for withdrawals therefrom as authori�ed herein,
maintain those amounts therei.n until thexe is a sufficient amount
in the Bond Fund, including the Reserve Account thexein, to pay
the prir�cipal of and interest on all outstanding Refunding Bonds to
the final maturity thereo� at which time tY�e money in the Bond
Fund, including the Reserve Account therein, may be used to pay
such principal and interest.
In the event there shall be a de�ficiency in the Principal
and Interest Account to meet maturing installments of either principal
or interest, as the case may be, on the Refunding Bonds, such deficiency
shall be made up from the Reserve Account by the withdrawal of cash
therefrorn for that purpose. 1�n,y deficiency created in the Reserve
Account by reason of any such w.ithdrawal shall then be made up from
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� � the money from the Revenue of �the Waterworks Utility of the City first
available after making necessa:�ry provisions for the required payments
into the Principal and Interest Account.
Al1 money in the Rese�rve Account above provided for may be
kept on deposit in the officia�L bank depository of the City, or
deposited in institutions permitted by law in an amount in each
instance not greater than the ��rnount insured by any department or
agency of the United States Go��ernment or may be invested in United
States Government obligations having a guaranteed market, or in
United States obligations matur.ing not later than December l, 1987.
znterest or earnings on any suc:h investment or on such bank account
shall be deposited in and become a �art of the Reserve Account until
the total required reserve sum shall have been accumulated therein,
a�ter tirhich time such interest shall be deposited in the Principal
and Interest Account.
If the City shall fai.l to set aside and pay into the Bond
Fund the amounts which it has abligated itself by this section to
set aside and pay therein, the holder of any Refunding Bond may
bring suit against the City to compel it to do so.
Section 8. The Reven.ue of the Waterworks Utility of the
City is hereby pledged to such payments, and the Refunding F3onds
shall constitute a lien and charge upon such Revenue prior and
superior to any other charges �whatsoever, ,excluding charges for
maintenance and operation of such Waterworks Utility of the City,
except that the lien and charge upon such Revenue for the Refunding
Bonds shall be on a parity with the lien and charge thereon for the
outstanding 1977 Bonds and any Future Parity Bonds hereafter issued,
the lien and charge upon such Revenue for the 1954 Bonds, 1965
Bonds and 1965 Refunding Bonds being defeased as a matter of law
immediately upon the irrevocable deposit with the Refunding
Trustee of the money and "Acquired Obligations," being direct
obligations of the United States Government and the equivalent ,
of cash, as herein provided.
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- �. Section 9 . In the judgment of the City Council, the
Revenue of the Waterworks Uti.lity of the City, at the rates to
be charged for water and sani�tary sewage disposal service on the
entire Utility, will be more than sufficient to meet all expenses of
� operation ancl maintenance thereof and the debt service requirements
of the outstanding 1977 Bonds and to permit the setting aside i
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the Bond Fund, out of the Rev�nue of the Waterworks Utility of the
City o� amounts suf�ici,ent to pay the interest on the Refunding
Bonds as such. interest becomes payable and to pay and redeenl all of
the Re�unding Bonds at maturi-ty. The City Council and corporate ,
authorities of the City furthf�r hereby declare that in creating
the l�ond Fund and in �ixing tl.Ze amounts to be paid into the sarne,
as aforesaid, they have exerc:�sed ciue xegard for the cost of
operat�.on, and maintenance of the i�iaterworks Util,ity of the City
an,d the debt service requiremE:nts of the presently outstanding 1977
Bonds, and the City has not bound and obligated itself to set aside
and pay into the Bond Fund a qreater amount or proportion of the
Revenue of the Waterworks UtiAity of the City 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 1977 Bonds, ,and that no portion of the Revenue of the
Lnlaterworks Utility of the City has been previously pledged for any
other presently outstanding ii�debtedness, except for the payment of
the presently Outstanding Bonds to be refunded as provided herein
and the 1977 Bonds.
Section 10. The Cii�y hereby covenants and agrees with
, the owner and holder of each gtefunding Bond at any time outstanding
as f ol lows:
(a) That it will establish, maintain and collect
such rates and charc�es for water and sanitary
sewage disposal service so long as any Refunding
Bonds are outstanding as will make available for
the payment of the principal of and interest on
such Refunding Bonds an amount equivalent to at
least 1.5 times the average annual debt service
requirements, both principal and interest, of the
Refunding Bonds and the outstanding 1977 Bonds
after deducting cosi�s of maintenance and operation
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� . from the Revenue of the Waterworks Utility of the
City; provided, however, that after the payment and
retirement or provision for such payment and retire-
ment has been irrevocably made pursuant to RCW
Chapter 39 .53 (the "Refunding Bond I�ct") of all
outstanding 1977 Bonds, the 1.5 coverage requirernent
shall be reduced to a 1.3 coverage requirement.
(b) That it will at a11 times maintain and keep
the Waterworks Utili�ty--of the City in good repair,
working order and co��dition and also will at all
times operate such Utility and the business in
connection therewith in an efficient manner and at
a reasonable cost.
(c) That it will :not sell, lease, mortgage or in
any manner encumber Qr dis�ose of all the property
o� the i�aterworks Utility -o� the City unless
pravision is. made fo_� payment into the Bond Fund
of a sum sufficient �to pay the principal of and
interest on all Refunding Bonds at any time
outstanding, and that it wa.11 not sell, lease, _
mortgage, or in any manner encumber or dispose o�
any part of the prop�rty o� said Waterworks Utility
of the City that is used, useful and material to
the operation thereo'�:, unless provision is made for
replacement thereof, or �ox payment into the
respective bond funds foz the 1977 Bonds and the
Refunding Bonds of an al].ocab7.e portion of the total
amount of Revenue xeceived which sha11 not be less
than an amount which shall bear the same ratio to
the arnount of the oui=standing 1977 Bonds and the
I Re�unding Bonds as tlze Revenue available for debt
service �or such outstanding bonds for the twelve
months preceding such sale, ,lease, encumbrance or
disposal from the portion of the Utility sold, leased,
encumbered or disposed o� bears to the Revenue
available for debt sE:rvice for such bonds from the
entire Utility for the same �eriod. I�ny such money
so paid into such bond �unds shall be used to retire
such outstanding bonds at the earliest possible date.
(d) That it �nrill while any of the Refunding Bonds
remain outstanding keep proper and separate accounts •
and records in which complete and separate entries
shall be made of all transactions relating to the
Waterworks Utility of_ the City, ,and it will furnish
the original purchaser or purchasers of the Refunding
Bonds or any subsequent holder or holders thereof at
the written request c�f such holder or holders complete
operating and income statements of said Utility in
reasonable detail co��ering any calendar y�ear not more
than ninety days aft�r the close of such calendar year
and it will grant any holder or holders of at least
twenty-five percent af the outstanding Refunding Bonds
the right at all rea:�onable times to inspect the entire
Waterworks Utility oj= the City and all records, accounts
and data of the City relating thereto. Upon request
of any holder of any -of said Re�unding Bonds, it
will� also furnish to such holder a copy of the most
recently completed audit of the City's accounts by "
the State Auditor of Washington.
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� � (e) That it will not furnish water or sanitary
sewage disposal service to any customer whatsoever
, free of charge and w:ill prornptly take legal action
to enforce collectioii of all delinquent accounts.
(f) That it will c:arry the types of insurance on
the Waterworks Uti],ity of the City properties in the
amounts normall carr_ied b rivate water and
Y y s ewer
P
companies engaged in the operation of water and
sewerage systems, ancl the cost of such insurance
shall be considered a part of operating and maintaining
said Utility. If, a:�, and when, United States of
America or some agency �thereof sha11 provide for War
Risk Insurance, the C'ity further agrees to take out
and maintain such insurance on all or such portions
of said Utility on which such War Risk Insurance may
be written in an amoL�t or amounts to cover adequately
the value thereof.
(g) That it will pay all costs of maintenance and
operation of the Waterworks Utility of the City and
the debt service requirements for the outstanding
1977 Bonds and otherwise meet the obligations of the
City as herein set forth.
(h) That it wi11 make no use of the proceeds of
the Refunding Bonds or other �unds of the City at
any time during the term of the Refunding Bonds
which, if such use had been reasonably expected at
the date that the Refunding Bonds are issued, would
have caused such Refunding Bonds to be arbitrage
bonc3.s within the meaning of Section 103 (c) of the
United States Internal Revenue Code of 1954, as
arnended, and the applicable regulations of the
United States Treasury-�Department promulgated
thereunder, a11 as of the...date of issue of the
I Refunding Bonds.
The covenants_ of this �section appertaining to the Refunding
Bonds snall be subject to all p:rovisions concerning payment and to
all other contractual provision;a in the proceedings authorizing the
issuance of the Outstanding Bonds or otherwise appertaining thereto.
Sect'ion 11. �he Refunding Bonds sha11 be substantially
in the following form:
No. $5, 000
UNITED STATES OF AMERICA
STATE OF WASHIYJGTON
CITY pF RENTON
WATER AND SEWER. REVENUE R�FUNDING BOND, 1977
ISSUE NO. L
0
a
The City of Renton, State of Washington (hereinafter
called the "City" ) , for value received promises to pay
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� . to bearer on the FI:RST DAY OF JANUARY, 19 , the
, principal surn of —
FIVE THOUSAND UOLLARS
together with interest thereon at the rate of
% per annum, payable on July 1, 197£i, and
semiannually thereafter on the first days of January
and July of each year, upon presentation. and
surrender of the at.tached interest coupons as they
severally mature up to the bond maturity date and
with fu11 obligation on the part o� the City to pay
interest at the same rate from- and after the bond
maturity date until, tY�is bond with interest is paid
in full, or funds are available in the "Renton 1977
Water and Sewer Revenue Refunding Bond Redemption
Fund I1o. 2" (hereinafter called the "Bond Fund")
for payment in fu11. Both principal of and interest
on this bond are payable in lawful money of the
United States --of America at the office of the
Director of Finance of the City, or, at the option
of the holder, at either fiscal agency of the State
of Washington in th�e Cities of Seattle, Washington,
ox New York, New Yo.rk, solely out of the special fund
created by Ordinance No. , and referred to herein
as the "Bond Fund," into which fund the City hereby
irrevocably binds itself to pay cer�ain fixed amounts
out of the gross revenues of the waterworks utility,
including the sewerage system as a part thereof, now
belonging to or whic�h may hereafter belong to the City,
including al1 addit:ions, extensions and betterments
thereof now or at any=•time made or constructed, without -
regard to any �ixed proportion, namely, ,anounts
sufficient to pay�-�the principal of and interest on this
a.ssue of bonds as they respective],y become due and to
accumulate a reserve, all at the times and in the
manner set forth in Ordinance No. (hereinafter
called the "Bond Ordinance") .
The gross revenue:� from the combined water and
sewerage systems, cc>mprising the waterworks utility
of the City, are hereby. pledged to such payment and
the bonds of this�-i�sue constitute a lien and charge
upon such revenues ��rior and superior to any other
charges whatsoever, excluding charges for maintenance
and operation, except that the lien and charge upon
said revenues for this issue� of bonds shall be on a
parity with the lieri and charge upon such revenues for
the outstanding "City of Renton Water and Sewer Revenue
Refunding Bonds, 1977," dated June 1, 1977, and any
other additional water and sewer revenue bonds here-
after issued on a parity with such bonds, in accordance
with the provisions��-of Section 14 of Ordinance No.
3141 and Section 13 of the Bond Ordinance.
This bond is one �f a total issue of $800,000 par
value of bonds, all of like date, tenor and effect,
except as to maturities, interest rates and option of
redemption, all pay�ble from the Bond Fund and all I
issued by the City u!nder and in pursuance of the laws �,
of the State of Washington, particularly Chapter 138, �
Laws of 1965, lst Ex. 5es . , as amended, known as the
"Refunding Bond Act" (RCW Chapter 39.53) , for the
purpose of providing a part of the funds to refund,
pay and retire all af its outstanding "City of Renton
Water and Sewer Rev�nue Bonds, 1954, " dated September 1, I
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� 1954, "City of Renton Water and Sewer Revenue Bonds,
1965, " dated May l, 1965, and "City of Renton Water
and Sewer Revenue Refunding Bonds, 1965," dated .
December 15, 1965, a11 as provided in the Bond
Urdinance, and is issued in full compliance with the
ordinances of the City and the Constitution and laws
of the State of Washington. Reference is made to the
Bond Ordinance as more fully describng the covenants
�aith and rights,-of holders of bonds of this issue.
The City reserves���the right to redeem the bonds of
this issue as a whole, or in part in inverse numerical
order, from money =derived from any source at the
following percentages -of par, if redeemed at the
following t�imes, plus accrued interest to date of
redemption in each case:
On January l, 1986, and July l, 1986, at 101o
On January l, 1987, and July l, 1987, at 100-1/20
Notice of such int�nded redemption shall be given by
publication thereof in the official newspaper of the
City at least once not less than 30 nor more than 45
days prior to the ca:l,l date. Written notice shall also
be given to the principal office of Seattle--Northwest
Securities Corporation in Seattle, Washington, or its
successor, within th� same peri.od. In addition, such
redemption notice shall also be sent to Moody's Investors
Service, Inc. , and Standard & �oor' s. Corporation, at
thea.r offices- in New York, New York, but the mailing
of such notice to such corporations shall not be a
condition precedent i:o the redemption o� such bonds.
Interest on any bonds so called for redemption shall
cease on the date fa.xed for such redemption upon
payment of the redemption price into the Bond Fund.
The City reserves the right to purchase any or all
of the bonds in the open market at any time at a price
not in excess of 101°� of the par value if purchased
prior to January l, 7_987, an.d thereafter not in excess
of the call price applicable at the time of such
purchase.
The City hereby covenants and agrees with the holders
of each and every one of the bonds of this issue to
fully carry out all covenants and meet all obligations
of the City as set farth in the Bond Ordinance.
It is hereby certi�ied and declared that the bonds
of this issue are issued pursuant to and in strict
compliance with the Constitution and laws of the State
of Washington and thE ordinances of the City, and that
all acts, conditions and things required to be done
precedent to and in t:he issuance of this bond have
happened, have been c�one and have been performed as
required by law.
IN WITNESS WHEREOF, the City has caused this bond
to be signed by the facsimile signature of its Mayor
and attested by the ntianual signature of its Clerk and
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' . its printed facsimile seal to be reproduced hereon
and the interest coupons attached to be signed with
the facsimile signatures of said officials this first
day of November, 1977.
CITX OF RENTON, WASHINGTON
By (f ac simi le s ignature)
Mayor
ATTEST;
Clerk
The interest coupons attached to the Refunding Bonds shall
be substantially in the following form:
Coupon No.
$
(.Unless the bond �eferred to below shall have been
previously redeemed)
On the FIRST D1�Y OF (JANUARY) (JULY) , 19 , the CITY
Ok' RENTON, WASHZNGTON, upon presentation and surrender
of this coupon will pay to beaxer at the office of the
Director of Finance of the City, or, at the option of
the ho7,der, at either fiscal agency of the State of
Washington in the Ca.ties =of Seattle, Washington, or
New York, New Yoxk, the sum shown hereon in lawful
money o� the United States o� America from the special
fund of the City kn�wn as the "Renton 1977 Water and
Sewer Revenue Refunding Bond Redemption Fund No. 2, "
said sum bein,g the interest then due on its "City of
Renton Water and Sewer Revenue Refunding Bon�i, 1977,
Issue No. 2," dated November 1, 1�77, and numbered
CITX OF REN'�ON, WASHINGTON
By (.facsimile s 'ignature)
Mayor
A�TEST:
(facsimile signature)
Clerk
^1he Refunding Bonds shall be printed on lithographed
forms shall be si ned b the facsimile si nature of the Ma or and
� g Y g Y
attested by the manual signature of the Clerk and pursuant to RCW
39.62. 030 shall have the printed facsimile seal of the City reproduced
thereon, and the interest coupons� shall bear the facsimile signatures
of the Mayor and the Clerk.
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I ' Section 12. In the event the City shall issue advance
refunding bonds pursuant to the laws of the State of Washington,
or have money available from any ��other lawful source, to pay the
principal of and interest on the Refunding Bonds or such portion
thereof included in the refun.ding plan as the sazne become due and
payab,le and to refund all su�h then outstanding Refunding Bonds
and to pay the costs-�of refunding, and shall have irrevocably set
aside for and pledged to such payment and refunding, money and/or
direct obligations of the United 5tates of America or other legal
investments sufficient in amount, together wi,th known earned income
from the investments thereof, to make such payments and to accomplish
the re�unding as scheduled (hereinafter called the "trust account")
and shall irrevocably make provisions for redemption of such
Refunding Bonds, then i.n that case al,l right and interest of the
owners or holders of the Refunding Bonds-to be so retired or refunded
ax�d the appurtenant coupons ��(hereir�after coll.ectively called the
"defeased Refunding Bonds" ) in the covenants of this ordinance,
in the Revenue of the Waterworks-=Utility of the City and funds and
accounts obligated to the payrnent of such Refunding Bonds shall
thereafter cease and become vc�id, except such owners and holders
shall have the right to receive p�yment o� the principal of and
interest on the defeased Refunding Bonds from the trust account
and, in the event the funds in the trust account are not available
�or such payment, sha11 have �he residual right to receive payment
, of the principal of and interest on the defeased Refunding Bonds
from the Revenue of the Waterworks Utility of the City without any
priority of lien or charge aga.inst 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 Refunding Bonds to any lawful purposes
as it shall determine, subject only to the rights of holders of any
other bonds then outstanding. I
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� � In the event that tYne refunding plan provides that the
Refunding 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 inv�:stments pending the prior redemption
of those Refunding Bonds being refunded and if such refunding plan
also provides that certain cash and/or direct obligations of the
United States of America or othex legal investments are irrevocably
pl,edged for the prior redemption of those Refunding Bonds included
in the refunding plan, then only the debt service on the Refunding
Bonds which are not defeased Refunding Bonds and the refunding bonds,
the payment of which is not so secured by the refunding plan, shall
b e included in the computation, of coverage for issuance of Future
�arity �onds and the annual computation of coverage for determining
compliance with the rate covenants.
Section 13. The City��reserves the right to i.ssue Future
�arity Bonds which will consti�tute a lien an,d chaxge upon the Revenue
o� the �nIaterwox'ks Utility o� tk�e CitX on a parity with the 1977
Bonds and the Refunding Bonds, provided, the conditions set forth
in Section 15 of Ordinance No. 1450 are met and complied with at
the time af the issuance of such Future Paxity �3onds, which section
is by this reference incorporated herein and made a part hereof
and shall continue to be applir.able even though the "City of Renton
Water and Sewer Refunding and �:mprovement Bonds, 1953, " have been
paid and retired; provided, however, that after the payment and
retirement or provision for suc:h payment and retirement has been
irrevocably made pursuant to R(:W Chapter 39.53 (the "Refunding Bond
Act") of all outstanding 1977 F3onds, the 1. 5 coverage requirement
to be met for the issuance of Future Parity Bonds may be reduced to
a 1. 3 coverage requirement.
Section 14. Seattle--Northwest Securities Corporation
of Seattle, Washington, heretof:ore offered to purchase the Refunding
Bonds at a price of 98% of par plus accrued interest to the date
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� of delivery of the Refunding Bonds, the.City to furnish the printed I
Refunding Bonds and the unqualified approving legal opinion of
Messrs. Roberts, Shefelman, Lawrenc�, Gay & Moch, municipal bond
counsel of Seattle, Washington, and the purchaser to pay the cost I
of printing such Refunding Bonds and an allocable portion of the
cost of such legal opinion as -�set forth in Section 5 above and
� the purchaser to provide the "Acquired Obligations" above referred
to as set forth in such offer. �l'he City Council, being of the
opinion that it was in the best interests of the City to accept such
offer, duly accepted the same on October 24, 1977, and such acceptance
a,s hezeby ratified and con�irmed. The Refunding Bonds shall,
therefoze, immediately=upon their ex�cution be delivered to the
purchaser upon payment for the Refunding Bonds in accordance with
such offer.
Section 15. This ordinance shall be in fu11 force and
ef�ect �i,ve days from and after its �assage, approval and legal
publication.
PASS�A BY THE CZTY COUNC�Z,� th�S 14th day of November, 1977.
' �:f'��/YtD�� � �� ,
DELnRES A. MEAD, City Clerk
AP�ROVEA BY THE MAXOR, thi� 14th day o,� NoVember, 1977.
�' � :=/;'��,� ��..t�i ,
HARLES J�j�ELAURENTI , Mayor
�/
Approved as to Form:
C�V�(f��.
Act '�;rig City Attorney
Date of Publication: November 18, 1977 '
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• .' ` EXHIBIT A
A G R E E M E N T
THIS AGREFMEN�.L' made and entered into as of the day
of TJovember, 1977, by and between THE CITY OF RENTON, WASHINGTON, a
municipal corporation of the State of Washington (the "City") , and
PEOPLES NATIONAL BANK OF [�IASHI:NG�'ON, Seattle, �aashington (the
"Refunding Trustee") ;
W I T N � S S � � H:
SECTION l. Recitals�. The City now has outstanding its
"City of Renton Water and Sewer Revenue Bonds, 1954, " issued under
date of 5eptember 1, 195�, in the aggregate princi.pal amount of
$219,000 �hereinafter caZled the "1954 Bonds"} , its "City of Renton
Water and Sewer Revenue Bonds, 1965, " issued under date of May 1,
1965, in the aggregate principal amount of $300,000 (hereinafter
called the "1965 Bonds" ) , and its "City of Renton Water and Sewer
Revenue Refunding Bonds, 1965," issued under date of December 15,
f
1965, in the aggregate principal a�-nount o� $475 ,000 (_hereinafter
cal7,ed the "1965 Refundi.ng Bonds") , all of such bonds being sometimes
hereina�ter called collectively- the "Outstanding Bonds. "` The City
by Ordinance No. passed �y the City Council and agproved by
the Mayor on November ,, 1977, has determined to pay the principal
of and interest on (a) the 7.954 Bonds coming due to and including
September 1, 1984, the final maturity date thereof, (b) the 1965
Bonds coming due to and including P�tay 1, 1989, the final maturity
date thereof, and (c) the 1965 Refunding Bonds coming due to
and including June l, 1988, the final rnaturity date thereof, out
of the proceeds of sale of its "City of Renton Water and Sewer
Revenue Refunding Bonds, 1977, Issue No. 2" (tlie "Refunding Bonds" ) ,
and other money of the City--legally available therefor.
SECTION 2 . Provisions far the Payment and Retirernent
of the Outstanding Bonds. To accompli.sh the payment and retirement
of the Outstanding Bonds, inclizding the payment of the principal of
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a�.d in�erest on each issue o:E such Outstanding Bonds as the sar►e
become due to the final matu:city thereof, the City, simultaneously
with the delivery of the Refunding Bonds issued pursuant to said
Ordinance No. , does hereby agree to irrevocably deposit with
the Refunding �rustee in trust for the security and benefit of the
holders and owners of the Oui�standing Bonds and the Refunding Bonds
the sum of $ 9. 348 . 43 in cash and u. s . TREASURY NOTES
and United States
Treasury Certificates �of IndE�btedness, Notes and Bonds - state and
local government searies� ��commonly called "book entry" obligations)
�,ri.th amounts, .interest rates and maturities as more particularly
set �orth in Schedule "A" attached to this Agreement and by this
re�erence incorporated herein., whiGh securities are hereinafter •
referred to as "Obligations,", and such cash and Obligations, with
the investment i.ncome therefrom, will be sufficient to provide for
the payment of the principal of and intex�est on the Outstanding
Bor�ds coming due up to and including the final maturity of each
of such issues.
On or before tfie delivery of the Refundi.ng Borids the
City agrees that it will cause to be delivered to the Refunding
Trustee a statement setting forth the amount of interest and
principal to be paid on each semiannual interest and principal
payment date on each issue of the Outstanding Bonds up to and
including the final maturity -�hereof.
SECTION 3. Disburs�ments by the Refunding Trustee. The
Refunding Trustee shall present tor payment on the due date thereof
the Obligations so deposited �nd shall apply the proceeds derived
therefrom in accordance with the provisions of this section.
Money shall be transferred by the Refunding Trustee to
the Director of Finance of the City in amounts sufficient to pay
the interest on and principal of each issue of the Outstanding
Bonds coming due and payable tip to and including tlie final maturity ,
thereof.
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� r � - SECTIQN 4. Nonreinv�stm�nt of Funds; Custociy and
� �afekeeping o� G�bligations. A11 money aepasited with the
Refunding Trustee or received by,.the Refunding Trustee as ma�.uring
� grincipal or interest an Obligati.ons prior to the ti.me required
to make the .payments hereinbefare �set £orth shall be he1.d by the
Refunding Tru�tee and shall nc��. be reinvested.
All income derived :�ro� the Ubligations and arr�y money
deposited with the Refunding Trustee pursuant to Section 2 hereo�
I in the hands of the Refunding Trustee (which money is not reguired
I� to make the payments hereinbefore required to be mac�e) shall b�
�I paid to the Directar a� Finance of the City for the credit o� the
1977 Re�unding Fund a� the Ca.ty (hereinafter called the "Refuridinq
Fund") as an.d when rea].ized arad co�,lected �c�r use and application
as other money deposited in s�.id Kefunding Fund.
, For a� loz�g as any af �he t}utstanding Bonds are outstanding,
on or before the 1Qth day of each month, commencing with the month
af January, 1978, _the Re�undiz�.g Trustee shall render a statement
as o� the �.as� day of the pxeceda.ng �nonth ta the Uireetor af Finance
af the City, which statement shal.l set. forth -�he t�bzigatians which
have matured and the amounts received by the Re�unding Trustee by
reason of such maturity and the interest i.ncome received, the
amounts p�id to such Director of Finance for credit to the Refunding
�'und and the dates of such payznents for the payment of the ir�.terest
� on and principal of each i.ssue of the Outstanding Bonds as the
I
( Same sha11 become due andjor payab].e up to and �,ncluding the final
ma�.urity thereof, and any athe:r transact.ians af the Refunding
i �'rustee per�.aining to its duti�s- and obligatians as set forth
hezein,.
All Obliqatians, money �and investment irzcome depos�.ted
with or received by the Refund:ing Trustee pursuant to this Agreement
�hall be subject to the trust r.reated by this Agreement and �he �
Refunding Trustee shall. be Iiak�le far the preservation and
'
safekeep,ing the�eof. .
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� � - Reference herein to payments made to the Di.rector of �
Finance of the City shall also be deemed to include payments made
to the fiscal agency of the State o� (rlashington on behalf of such
Director of Finance.
SECTION 5.� Duties and Obligations of Refunding Trustee.
The duties and obligations of the Refunding Trustee sha11 be as
' prescribed by the provisions of this Agreement, and the Refunding
Trustee shal]. not be liable �xcept for the performance of its duties
and obligations as specifically set forth herein and to act .in good
faith in the performance the��eof and no implied duties or obligations
shall be incurred by such Re�unding Trustee other thar� those
specified herein.
The Refunding Trus�ee may consult with cour�sel of i�s
choice and the opinion of su�h counsel sha11 be full and complete
suthorization and protection in respect of any action taken or not
taken or suffered by it here�nder in good faith and in accordance
with the opinion of such cour�sel.
Provisions for the fees, compensation and expenses of the
Refunding Trustee satisfactory to it have been made.
CITY OF RENTON, WASHINGTCIN
By
A�`TE ST:
City Clerk
PEOPLES NATIONAL BANK OF WA5HINGTOP�
By ,
Trust Officer
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SCHEDULE A
CITY �F u�Nrnr-.
� ' SCHEDULE QF ACQUIRED OBLIGATIONS •
I� SECURITY PAR .; MATURITY
� DESCRIPTION AM OUNT COUPON • DATE
� BE 28,dQ0 6.7C3d00d 510IJ89
I BE 74,OOU 6»7000t�0 bI01/88
� BE 26,OOC� 6.70t}OUO 5 f£}1188 `
BE 68,OOt� 6.700ClC34 6i01/87 ,
BE 22,4(?0 7.40000Q 5/O1/87
• BE 18,QOU 6.6040U0 5/�1/86
� - BE 66,OOU 6.500000 6/O1/85
BE " 12,OpU 6.600000 5/O1185
BE 25,OOU 6.6t�U000 6I01/84
I'I BE 17,OQQ 6.b00000 5/OII$4
� BE 32,OOG b.600000 9101/83
BE 25,OOC� 5.850000 61f71183
$� 1�,00a s.ssooc�o stc�ila� ;
� BE 30,OQ(� 5.85000Q 9/41l82 �
BE 20,OQ0 5.850000 61Q1l82
B� 15,OOG 5.850000 SI01/82 ,
� BE 29,QOQ 5.850000 9/01/81
I BE 20,OQ0� 5.850000 6/01181
i . BE 1�r,00t� 5,85t�000 S/O1182 i
B� 2s,00a 5.$50000 91�i/so ;
sE 25,00f� 5.85{lJofl 6101180 �
BE 9,OOfl� 5»854000 Si0118{} �
� BE 26,00{� 5.850004 9!C►�l79 , ,
BE 20,QOQ 3.9pQd0� 6101/79 �
, BE 9,Oq0 0.000000 5lQ1/?9
BE 26,OQ0 O.00OqUQ 9/O1/78 �
BE 20,000 0.000000 610117�
i BE 20,OQ0 t�.000000 5/0i178
• ` TOTAL BE'S 740,000
NOTES 70,000 7.875000 5/15!$6 �
NOTES 40,Q00 7.25t}000 8115184
TO'TAL PAR $50,000 �
VALUE
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