HomeMy WebLinkAboutORD 3188 , ___ r p�-�.�,�d� b
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CITY OF RENTON, WASHINGTON
ORDINANCE NO. 3188
AN ORDINANCE providing for the issuance of
$3, 045,000 par value of "City of Renton Water and
Sewer Revenue Refunding Bonds, 1977, Issue No. 3,"
for the purpose of obtaining a part of the funds
with which to refund, pay and retire the outstanding
I "City of Renton Water and Sewer Revenue Bonds, 1977, "
of the City; fixing the date, form, denomination,
maturities, interest rates, terms and covenants of
such refunding bonds; creating a special account
in the bond redemption fund of the bonds being
refunded to provide for the re�unding operation;
creating a speci.al bond redemption fund to provide
for the payment of the refunding bonds; providing
for and authorizing the purchase of certain
obligations� out o,f the proceeds of the sale of
such refunding bonds and other money of the City
and for the use and application of the money to �,
be derived from such investment; providing for �
the payment and redemption of the outstanding
bonds to be refunded; and con�irming the sale and
providing �ox the delivexy of the refunding bonds
to Seattle-Northwest Securities Corporation of
Seattle, Washington.
WHEREAS, by Ordinance No. 1156, as amended by Ordinances
Nos. 1157 and 1.173, the sewerage system of the City of Renton
(hereinafter called the "City" ) has become and is considered a part
of the waterworks utility of the City; and
WHEREAS, the City heretofore issued under date of March l,
1953, $35, 000 par value of "City of Renton Water and Sewer Refunding
and Improvement Revenue Bonds, 1953," pursuant to Ordinances Nos.
1450 and 1452; and
WHEREAS, by Section 15 of said Ordinance P1o. 1450, 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 sewerage system as a part
thereof, on a parity with the then outstanding "City of Renton
Water and Sewer Refunding and Improvement Revenue Bonds, 1953," on
compliance with the following conditions at the time of the issuance
of such additional bonds:
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� " (A) All payments required by this ordinance to
be paid into the 'Renton 1953 Water and Sewer
Refunding and Improvement Revenue Bond Fund' shall
have been made; and
" (B) The revenues of said waterworks system,
inclucling the sewerage system, shall be and be
deemed sufficient, after the payment of operation
and maintenance costs and taxes, based upon the
historical experience of said systems or the pro
forma revenues �under then existing rates over a
period of any twenty-four consecutive months out
of the thirty-six months immediately preceding the
time of the issuance of such additional bonds, to
equal at least 1. 5 times �=the average annual
principal and interest requirements of the bonds
of this issue then outstanding and of the revenue
bonds proposed to be so issued. Such determi.nation
of the sufficiency of the revenues sha11 be made and
certified to by_�an engineer experienced in municipal
utilities; and
" (C) The Ordinance authorizing the issuance of
such additional revenue bonds shal,l provide for the
� setting aside into a reserve fund or account of an
amount not less�_than the average annual deb� 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 matura.ty thereof" ;
and
WHEREAS, the City-�thereafter issued under date of September l,
1954, $325,000 par value of "City, of Renton Water and Sewer Revenue
Bonds, 1954 ," pursuant to Ordinance T1o. 1489, and, under date of
July l, 19�9 , $750 , 000 par value of "City of Renton Water and Sewer
Revenue Bonds, 1959, " pursuant to Ordinance No. 1766 , and, under date
of May l, _ 1965, $500,000 par value of "City of Renton Water and
Sewer Revenue Bonds, 196.5,". pursuant to Ordinance �Io. 2151, and,
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 purpose 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 Ordinance t1o. 2930, and under date of
February l, 1976, $2 ,950, 000 par 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 refunding, redeeming and retiring on
� January 1, 1989, and July 1, 1989, all of the then outstanding
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� Cit of Renton Water and Sewer Revenue Bonds 1975 and under
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date of June l, 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 amended by
Ordinance No. 3145, for the purpose of providing a part of the
money required to pay the principal of and interest on the "City
of Renton Water and 5ewer Revenue Refunding Bonds, 1976, " coming due
to and including July l, 1989, and to redeem and retire on July 1, '
1989, the outstanding "City of Renton Water and Sewer Revenue
Refunding Bonds, 1976, " numbered 96 to 590, inclusive, maturing
from July 1, 1990, to Ju1y -.1, 20Q0 , inclusive, and under date of
November l, 1977, $800, 000 par value of "City of Renton Water and
Sewer Revenue Refunding Bonds, �977, Issue No. 2" (hereinafter
called the "1977 Bonds, Issue No. 2" )., .pursuant to Ordinance No.
3169 , for the purpose of obtai.ning a part of the funds with which
to refund, pay and retire the outstanding "City of Renton Water
and 5ewer Revenue Bonds, 1954," "City of Renton Water and Sewer
Revenue Bonds, 1965," and "City of Renton Water and Sewer Revenue
Refunding Bonds, 1965," all of which bonds were at the time of
their issuance issued on a parity��of lien with said then outstanding
"City of Renton Water and 5ewer Refunding and Improvement Revenue
Bonds, 1953," and with each other pursuant to the provisions of
Section 15 of said Ordinance 110. 1450 , said parity issues of bonds
being a first lien and charge upon the gross revenues from the
combined water and sewerage systems of the City, excluding charges
for maintenance and operation, except that all of said "City of
Renton Water and Sewer Refunding and Irnprovement Revenue Bonds,
1953," have now been paid and retired, and except the conditions
of subparagraph (B) of said Section 15 were modified by Section 12
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of Ordinance No. 2930 pertaining to the outstanding "City of
Renton Vdater and Sewer Revenue Bonds, 1975, " and by Section 13 of
Ordinance No. 3169 pertaining to the outstanding 1977 Bonds,
Issue No. 2, . as to any parity bonds issued in the future, and the
City by Section 14 of Ordinance No. 3169 reserved the right to
issue Future �arity Bonds (as therein clefined) which will constitute
a lien and charge upon the gross revenues of the Waterworks Utility
of the City (_as therein defined) on a ,parity with the 1977 i3onds
and the 1977 Bonds, Issue No. 2, provided the conditions set forth
in Section 1.5 of Ordinance P3o. 1�450 , ,as moclified, 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. 3169 and macl.e a part thereof and shall continue to
be applicable even though the "City of Renton VJater anci Sewer
�� Refunding and Improvement Revenue Bonds, ,l�53," have been paid and
retired; and
WHEREAS, there are presently outstanding $3 ,095,000
principal amount of 1977 Bonds maturing serially on July 1 of each '
of the years 1981 through 1999, which bonds bear interest at various
rates from 5.75% per annum to 6.10% per annum; and
WHEREI�S, as provided in Ordinance Ivo. 3141 and in the
1977 Bonds, the City reserved the right to redeem such 1977 Bonds
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 times, plus accrued interest to date of
redemption in each case:
Call Date Cal1 Price
July 1, 1987, and January l, 1988 101-1/20
July 1, 1988, and January 1, 1989 101%
July l, 1989, anci January l, 1990 100-1/20
July l, 1990 , or any semiannual interest
payment date thereafter 100% (Par)
and
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' - WHEREAS, after due consideration it appears to the City
Council that all of the outstanding 1977 Bonds may be refunded
by providing funds for the payment of the principal of and interest
on such outstanding bonds as the same respectively become due
up to and including January l, 1997, and the call, payment and
retirement on January l, 1997 , of all then remaining outstanding
1977 Bonds by the issuance and sale 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
principal and interest cost over the life of such outstanding
1977 Bonds and also for the governmental purpose o� modifying
certain restrictive covenants of the 1977 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� beazing interest and maturing
at such time or times as necessary to pay the principal of and
interest on the 1977 Bonds ast-the same shall become due and to
redeem the 1977 Bonds as aforesaid be purchased out of the proceeds
of the sale of the refunding bonds herein authorizecl (hereinafter
called the "Refunding Bonds" ) and other money o� the City legally
aVailable thexefor; and
WHEREAS, the City�Council hereby finds that all payments
required by Ordinance No. 3169 for the outstanding 1977 Bonds,
Issue No. 2, have been made into the bond redemption fund for such
outstanding 1977 Bonds, Issue No. 2; that provision is hereinafter
made for the accumulation of the additional amounts required in
the "Reserve Account" in the -bond fund for the Refunding F3onds;
and that Mortimer H. Thomas of Gardner Engineers Inc. , an engineer
experienced in r�lunicipal utilit�.es, will certify, .after taking
into consideration the fac� that after the issuance of the Refunding
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, �Bonds no debt service on the 1977 Bonds will be paid from the
revenues of the combined water and sewerage systems of the City,
that said revenues are sufficient to meet the 1. 3 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; I�OW, THEREFORE,
THE CITY COUNCIL OF 'Z'HE CI�'X OF RENTON, WASHINGTON, DO
ORDAIN, as follows:
Section l. As used 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 1977 Water and Sewer Revenue Refunding
Bond Redemption Fund No. 3, " created by this ordinance for ttie
payment of the principal of and interest on the Refunding �3onds.
(b) "1977 Bond Funci" shall mean that special funcl of
the City known as the "Renton 1977 Water and Sewer Revenue
Refunding Bond Redemption Fund" created by Ordinance TNo. 3141
for the payment of the principal of and interest on the 1977
Bonds.
(c) "1977 Bonds" shall mean the $3,095,000 par value
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of "City of Renton Water and Sewer Revenue Refunding Bonds, 1977,
' issued under date of ,Tune l, 1977, pursuant to Ordinance P1o. 3141.
(d) "1977 Bonds, Issue No. 2," shall mean the $800,000
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par value of City of Renton Water and Sewer Revenue Refunding
Bonds, 1977, Issue No. 2," issued under date of November l, 1977,
pursuant to Ordinance No. 3169 .
(e) "City" shall mean the City of Renton, Washington, a
duly organized and existing noncharter code city under the laws of
the State of Washington.
(f) "Future Parity--Bonds" shall mean all water and sewer
revenue bonds of the City issued after the date of the issuance of
the Refunding Bonds and having a lien and charge upon the Revenue
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� of the Waterworks Utility of the City on a parity with the lien
and charge upon such gross revenues for the 1977 Bonds, Issue No. 2,
and the Refunding Bonds for the payment of the principal thereof
and interest thereon.
(g) "Principal and Interest Account" shall mean the
account of that name created in the Bond Fund by this ordinance for
the payment of the principal of and interest on the Refunding Bonds.
(h) "Refunding Bonds" shall mean the "City of Renton
Water and Sewer Revenue Refunding Bonds, 1977 , Issue No. 3, "
authorized to be issued by this ordinance.
(i) "1977 Refunding Account" shall mean the account of
that name created by this ordinance in the 1977 Bond Fund, the bond
redemption fund for the 1977 Bonds, to provide for the refunding
operation.
(j) "Reserve Account" shall mean the account 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 Refunding Bonds.
(k) "Revenue of the Waterworks Utility of the City" shall
mean all the earnings and revenue received by the Waterworks Utility
of the City from any source whatsoever, including payments received
under contract with other municipal corporations for 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.
(1) "Waterworks Utility of the City" shall rnean the
combined water and sewerage systems of the City as the same may be
= added to, improved and extended for as long as any of the 1977
Bonds, Issue No. 2, the Refunding Bonds and any Future Parity Bonds
are outstanding.
Section 2. For the purpose of providing a part of the
money required to pay the principal of and interest on the 1977
Bonds coming due to and including January 1, 1997, and to redeem
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' and retire on January 1, 1997, the outstanding 1977 Bonds numbered
445 to 619 , inclusive, maturing from July 1, 1997, to July 1, 1999,
inclusive, the City shall issue the Refunding Bonds in the aggregate
principal amount of $3,045,000.
The Refunding Bonds shall be designated "City of Renton
Water and Sewer Revenue Refunding Bonds, 1977, Issue No. 3" (herein
defined as the "Refunding Bonds" ) ; shall be dated December 1, 1977;
shall be in denominations of $5 ,000 each; sha11 bear interest at
the rates hereinafter set forth, payable on July 1, 197�, and ,
semiannually thereafter on the first days of each succeeding
January 1 and July 1, interest to maturity being evidenced by
coupons to be attached to the I2efunding Bonds with full obligation
on the part of the City to pay interest at the bond rate from and
after the bond maturity dates unti.l 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 Bond Fund
hereinafter referred to and the Refunding Bonds have been duly
called for redemption. The Refunding Bonds shall be numbered,
shall bear interest and shall mature on July 1 of each year as
follows:
Bond Pdurnbers Interest
(Inclusive) Amounts Rates Years
1 to 2 $ 10, 000 5 .900 1981
3 to 12 50,000 5.90% 1982
13 to 24 60,000 5.90a 1983 -
25 to 35 55,000 5.900 1984
36 to 46 55,000 5. 900 1985
47 to 58 60, 000 5.90% 1986
59 to 71 65,000 5.900 1987
72 to 84 65,000 5. 900 1988
85 to 115 155,000 5.900 1989
116 to 153 190, 000 5.90% 1990
154 to 194 205,000 5.90% 1991
195 to 237 215, 000 5. 90% 1992
"L38 to 282 225,000 5.900 1993
283 to 330 240, 000 6. 00o 1994
331 to 381 255,000 6.00% 1995
382 to 436 275 ,000 6.00o i996
437 to 494 290, 000 6. 00o 1997
495 to 557 315,000 6.UOo 1998
558 to 609 260, 000 6.00% 1999
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Both principal of and interest on the Refunding Bonds shall
be payable in lawful money of the United States of America at the
off ice of the Director of Finance of the City, or, at the option of
the holder, at either fiscal agency of the State of Washington in the
Cities of Seattle, Washington, or New York, New York, solely out of
the Bond Fund, and shall be a valia claim of the holder thereof only
as against such Bond Fund and the amount of the Revenue of the
Waterworks Utility of the City -pledged to .such fund, and shall not
be a general obligation o� the City.
Section 3. The City reserves the right to redeem the
Refunding Bonds 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 followinc� times, plus accrued interest to
date of redemption in each case:
Call Date Call Price
Ju1y 1, 19$7, and January l, 1�88 101-1/2%
' July 1, 1988, and January l, 198� 101o
July l, 198�, and January 1, 1990 100-1/20
suly 1, 1990, or :any•-semiannual interest
payment date thereafter 100% (Par)
Notice of such intended redemption shall be given by
publication thereof in the off icial newspaper of the City a•t least
once not less than 30 nor more than 45 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 sha11 also be sent to Moody's Investors Service, Inc. , and
Standard & Poor' s Corporation, at their offices in New York, New
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 called for redemption
shall cease on the date fixed for such redemption upon payment of
the redemption price into the Bond Fund.
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� The City reserves the xight to purchase any or all of the
Refunding Bonds in the open market at any time at a price not in
excess of 101-1/20 of the par value if purchased prior to July l,
1988, and thereafter not in excess of the call price applicable at
the time of such purchase. '
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 Bond Redemption Fund No. 3" (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 E3ccount
and a Reserve Account. There is hereby also createcl and established
in the 1977 Bond Fund an additional account to be known and
designated as the "1977 Refunding Account." Immediately upon
receipt of payment in full for the Refunding Bonds, the accrued
interest received, if any, shall be deposited in the Principal
and Interest I�ccount in the Bond. Fund. The principal proceeds
received shall. be deposited in the 1977 Re�unding Account in the
1977 Bond Fund and an amount equal to the accrued interest on
the 1977 Bonds from the last interest payment date of such 1977
Bonds to the date of delivery of the Refunding Bonds to the
purchaser thereof and principal on such 1977 Bonds in the total
amount of $107 ,000.00 shall be transferred from the Principal
and Interest �,ccount in the 1977 �ond Fund to the 1977 Refunding
Account in the 1977 Bond Fund. Similarly, $28,�00.00 of money
in the Reserve Account in the 1977 �ond Fund shall be transferred
to the 1977 Refunding Account. Any remaining money in the 1977
Bond Fund (other than in the 1977 Refunding Account) after making
such transfers shall be transferred to and deposited in the
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Principal and Interest Account in the Bond Fund. The money in
the 1977 Refunding Account shall be used immediately upon the
receipt thereof to discharge the obligations of the City under
Ordinance 1Jo. 3141 passed and approved June 13, 1977, authorizing
the issuance of the 1977 Bonds �by providing for the payment as
hereinafter set forth in this section of the principal of and
interest on the 1977 Bonds. �1�0 the extent practicable the City
shall discharge such obligations -by the purchase of Federal Land
Bank Bonds and United States treasury Certificates of Indebtedness,
Notes and Bonds -- state and local government series (commonly
called "book entry" obligations [BE] ) ("Acquired Obligations")
bearing such interest and maturing as to principal and interest
in such amounts and at such times so as to provide for the payrnent
� of the principal of and interest on the 1977 Bonds which will
become due and payable on or before January l, 1997, ana the redemption
price payable on January l, 1997, for the principal of the 1977 Bonds
numbered 445 to 619 , inclusive. Such "Acquired Obligations" and
the prices to be paid for the same are more par ticularly describ ed
in the proposal of Seattle-Northwest Securities Corporation
hereinafter referred to.
5uch "Acquired Obligations" and a beginning cash ba�ance
of $106,256.82 shall be irrevocably deposited with Peoples National
Bank of Washington, Seattle, Washington (�iereinafter called the
"Refunding Trustee" ) . Any amounts described in this section
� which are not provided for in full by the purchase and deposit of
the "Acquired Obligations" described in this section shall be
provided for by the irrevocable deposit of a portion of the proceeds
of sale of tYle Refunding Bonds or other money of the City with
the aforesaid Refunding Trustee.
The beginning cash balance deposited with the Refunding
Trustee and all the money •received as principal of and interest
on such "Acquired Obligations" shall be held by the Refunding
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• .Trus�ee for the credit of the City for the 1977 Refunding Account I
in the 1977 �3ond Fund, and stiall be held in trust and shall be
used for the sole purpose of paying the principal of and interest
becorning due on the 1977 l3onds up to and including Jaiivary l, 1997 ,
and to pay and retire the aforesaid numbered 1977 Bonds on January l,
1997 , as herein provided.
any money remaining in the 1977 Refunding Account in
the 1977 Bond Fund after the payment and retirement iri full of
the outstanding 1977 F3onds as aforesaid stiall be transferred and
paid into the Principal azid Tnterest account in the Bond Fund.
All of such "Acquired Obligations" purchased as a part of the
refunding plan are irrevocably declicateci to the purpose set forth
in this ordinance, and such investments or the earnings or the
proceeds therefrom rnay be used for no other purpose, nor rnay any
of such investments be liquidated prior to maturity.
Section 5 . The City hereby irrevocably calls for
redemption on January 1, 1997 , the outstanding 1977 Bonds numbered '
445 to 619, inclusive, at the par value thereof plus accrued
interest to such date of redemption. Such call for redemption
shall be irrevocable after the delivery of the Refunding Bonds
to the initial purchaser thereof.
The Director of Finance is hereby authorized and directed
to give notice of the redern�tion of such 1y77 Boncis in accordance �
with the provisions of Ordinance No. 3141 pertaining to the 1977
Bonds.
Section 6 . The Refunding Trustee is hereby authorized
and directed to pay the principal of and interest on the 1977
Bonds when due from the "Acquired Obligations" and rnoney deposited
with the Refunding Trustee pursuant to Section 4 of this ordinance.
All "Acc�uired Obligations" and the money deposited with trie
Refunc3.ing Trustee and any income therefrom shall be held and
, applied in accordance with the provisions of Ordinance No. 3141
pertaining to the 1977_ �3onds and this ordinance and with the
statutes of the State of Washington.
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All necessary and proper fees, compensation and expenses
of the Refunding �i�rustee for �he Refunding Bonds ancl all other
costs incidental to the setting up of the escrow to accomplish
the refunding of the 1977 �onds, including but not limiteci to an
allocable portion of bond counsel ' s fees chargeable to such
escrow (60%) (except an escrow comp.utation fee which shall be
paid to Seattle-Northwest Securities Corporation of $19,949 .U0
from the principal proceeds of the �Refunding Bonds) shall be paid
by Seattle-Northwest Securities� Corporation as purchaser of the
Refunding Bonds. �he costs relating to the i.ssuance and delivery
of the Refunding I3onds, including bond printing and an allocable
portion of bond counsel 's fees chargeable to the preparation
of the legal proceedings and furnishing � an approving legal opinion
covering the Refunding Bonds (.400) , shall also be paid by Seattle-
Northwest Securities Corporation as �purchaser of the Refunding
. Bonds. The proper officers ,and agents of the City are directed �
to obtain from the Refunding Trustee an agreement setting forth
the duties, obligations and responsibilities of t�he Refunding
Trustee in connection with the redemption and retiremen,t of the
1977 Bonds as provi�le�. herein and stating that such provisions for
the payrnent of the fees , compensation and expenses of such
Refunding �'rustee are satisfactory to it.
In order to carry out the purposes o� this ordinance,
the Mayor and City Clerk of the City are authorized and directed
to execute and deliver to Peoples Pdational Bank of Washington,
Seattle, Washington, an agreement substantially in the form
attached hereto marked Lxhibit "A" and by this reference thereto
made a part of this ordinance.
, Section 7. So long as Refunding Bonds are outstanding
against the Bond Fund, the Director of Finance of the City shall
(a) set aside and pay into the Principal and Interest Account in
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such fund out of the Revenue of the 4daterworks Utility of the
City a fixed amount, without regard to any fixed proportion,
namely, monthly, on or before the first day of each month
beginning with the month of January, 1978, an amount, together
with the accrued interest received, equal to 1/7th of the amount
of interest payable on tYie Refunding �3onds on July l, 1978 , and
thereafter 1/6th of the next ensuing six months ' requirements
for interest and beginning with the month of August, 1980, 1/12th I
of the next ensuing twelve months ' requirements for principal on
the Refunding �3onds and continuing thereafter until tYie Kefunding
Bonds, both principal, and , interest, are paid in .full, and (b)
set aside and pay into the Reserve Account in the Bond Fund out
of the Revenue of the Waterworks Utility of the City in substantially
equal mon.thly payments such arnounts so that by no later than
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December l, 1-9-�-6, there shall have been accurnulated in the Reserve
Account in the Bond Fund for the-�Refunding Bonds an arzount not
less than the average annual principal and interest requirements
for the Refunding Bonds.
�.'he Reserve Account in the Bond Fund may be accumulated
from any other money which the City may have available for such
purpose in addition ta using such Revenue therefor.
The City further agrees-�that when said required amounts
have been paid into the Reserve Account in the Bond Fund, it will
at all times, except for withdrawals therefrom as authorized
herein, maintain those amounts therein until there is a sufficient
arnount in the Bond Fund, including the Reserve Account therein,
to pay the principal of and �interest on all outstanding Refunding
Bonds to the final maturity thereof at which time the money in
the Bond Fund, including the Reserve I�ccount therein, may be
used to pay such principal and interest.
In the event there sYiall be a deficiency in the Bond Fund
to meet maturing installments of either principal or interest, as
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' � the case may be, on the Refunding Bonds, such deficiency shall be
made up from the Reserve Account by the withdrawal of cash therefrom
for that purpose. any deficiency created in the Reserve Account by
reason of any such withdrawal shall then be made up from the money
from the Revenue of the Waterworks Utility of the City first
available after making necessary provisions for the required
payments into the Bond Fund.
[�11 money in the Reserve t�,ccount a,bove provi.ded for may
be kept on deposit in the official bank depository of the City, or
deposited in institutions permitted by law in an amount in each
instance not greater than the amount ir�sured by any department or
agency of the United States Government or may be invested in United
States Government obligations--having a guaranteed market, or in
United States obligations maturing not later than June 1, 1999 .
Interest on any such investment or on such bank account shall be
deposited in and become a part of the Reserve �iccount until the
total required reserve sum shall have been accumulated therein,
after which time such interest shall be deposited in the Principal
and Interest Account.
If the City shall fail to se-k aside and pay into the Bond
Fund the amounts which it has obligated itself by this section to
set aside and pay therein, the holder of any Re�unding Boncls may
bring suit against the City to compel it to do so.
Section 8. The Revenue of the Waterworks Utility of
the City is hereby �ledged to such payments, and the Refunding
Bonds 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, Issue No. 2, and any
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Future Parity Bonds hereafter issued, the lien and charge upon
such Revenue for the 1977 Bonds being defeased pursuant to Section 13
of .Ordinance No. 3141 imrnediately� upon deposit with the Refunding
Trustee of the money and "Acquired Obligations" as herein provided.
Section 9. In the judgment of the City Council, the
Revenue and benefits to be derived frora the operation and maintenance
of the vlaterworks Utility of the City, at the rates to be charged
for water and sanitary sewage disposal service on the entire Utility,
will be more than su�ficient to meet all expenses of operation and
ma,intenance thereof and the debt service requirenlents of the
, outstanding 1977 Bonds, Issue No. 2, 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 Refunding 33onds
as such interest becomes payable and to pay and redeem all of the
Refunding Bonds at maturity. The City Council and corporate
authorities of the City further hereby declare that in creating
the Bond Fund and in fixing the amounts to be paid into the same,
as aforesaid, they have exercised due regard for the cost of
operation and maintenance of the Waterworks Utility of the City
and the debt service requirements of the presently outstanding
1977 Bonds, Issue No. 2, ar�d the City has not bound and obligated
itself to set aside and pay into the �ond Fund a greater amount
or proportion of the Revenue of the said Utility tlzan 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, Issue No. 'L, and that no portion
of the Revenue of the Waterworks Utility of the City has been
previously pledged for any other unrefunded indebtedness, except
for the payment of the presently outstanding 1977 Bonds, Issue No. 2.
6ection 10. The City hereby covenants and agrees with
the owner and holder of each Refunding Bond at any time outstanding
as follows:
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(a� It vaill establish, maintain and collect such
rates and charges for water and sanitary sewage
disposal service so long as any 1977 Bonds, Issue No.
2 , and any Refunding Bonds are outstanding as will
make available for the paynlent of the principal of
and interest on such bonds an amount equivalent to
at least 1. 3 times the average annual debt service
requirements, both principal and interest, on the
1977 Bonds, Issue No. 2, and the Refunding Bonds
after deducting costs of maintenance and operation
from the Revenue of the Waterworks Utility of the
City. "Average annual debt service requirements"
shall mean the aggregate amount of principal and
interest payable in each year over the li.fe of such
1977 Bonds, Issue No. 2, and Re�uncling Bonds divided
by the number of maturity years remaining to the last
maturity of the longest maturing issue, being the
year 1999 .
(b) It will at all times maintain and keep the
Waterworks Utility of the City in good repair, �
working order and condition and a1.so will at all
times operate such Utility and the business in
connection therewith in an efficient manner and at
a reasonable cost.
t ' ll not sell lease mort a e or in an
c I wi , . g g Y
( ) .
manner encumber or dispose of all the property of
the Waterworks Utility of the City unless provision
' is made -for- payment into the Bond Fund of a sum
sufficient to pay the principal of and interest on
all 1977 Bonds, Issue No. 2, and Refunciing l3onds at
any time outstanding, and that it will not sell,
lease, .mortgage, or in any manner encumber or dispose
of any part of the property -of said Waterworks Utility
of the City that is used, useful and material to
the operation thereof, unless pravision is made for
replacement thereof, or for payment into the Bond
Fund of the total amount .of Revenue received which
sha11 not be less than an arnount which sha11 bear
the same ratio to the amount of the outstanding 1977
Bonds, Issue No. 2, and Refunding l3onds as the Revenue
available for debt service for such outstanding boi�ds
for the twelve months preceding such sa1e, 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 the Bond Fund shall be used to
retire such outstanding bonds at the earliest possible
date.
(d) It will while any of the Refunding Bonds
remain outstanding keep proper and separate accounts
and records in which complete and separate entries
shall be made of all transactions relating to the
Waterworks Utility of the City, and it will furnish
the original purchaser or purchasers of the Refunding
Bonds or any subsequent holder or holders thereof at
the written request of such holder or holders complete
operating and income statements of said Utility in
reasonable detail covering any calendar year not rnore
than ninety days after the close of such calendar year
and it will grant any holder or holders of at least
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twenty-five percent of the outstanding Refunding Bonds
the right at all reasonable times to inspect the entire
Waterworks Utility of the City and all records, accounts
and data of the City relating thereto. Upon request
of any holder of any of said Refunding Bonds, it will
also furnish to such holder a copy of the most recently
completed audit of the City' s accounts by the State
Auditor of 4Vashir�gtori.
(e) It will not furn,ish water or sanitary sewage
disposa"1 service to any customer whatsoever free of
charge and will promptly take legal action to enforce
collection of a11 delinquent accounts.
(f) It will carry the types of insurance on the
Waterworks Utility of the C:ity properties in the
amounts normally carried by private water and sewer
cornpanies engaged in the operation of water and
sewerage systems, and the cost of such insurance
shall be considered a part of operating and. maintaining
said Utility. If, as, and wl�en, the Unitea States of
arnerica or some agency thereof shall provide for War
Risk Insurance, the City further agrees to take out
and maintain such insurarice on a11 or such portions
of said system on ��l.ii.ch such War Risk Insurance may
be written in an amount or amounts to cover adequately
the value thereo�.
(g1 zt 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, Tssue T1o. 2 , arid the Refunding Bonds, and
otherwise meet the obligations of the City as herein
set forth.
(h) It will znake no use of the proceeds of the
Refunding Bonds �r other funds of the City at any
time during the term of the Re�unding �3onds which,
if such use had been reasonably expected at the date
tYiat the Refunding Bonds are issued, would have caused
such Refunding Bonds to be arbitrage bonas within
the meaning of Section 103 (c) (2) of the Uizited States
Internal Revenue Code of 1954 , as amended, and the
applicable regulations proposed or promulgated
thereunder as of the date of issuance of the Refunding
Bonds.
Section 11. �1'he Refunding �3onds shall be substantially
in the following form:
No. $5 ,OU0
UNITED S�.CATES OF AMERICA
STATE OF WASHING'I'OP1
CITY OF RENTON
WATER AP1D SEWER REVENUE REFUNVII3G BOT�D, 19 7 7
ISSUE NO. 3
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' The City of Renton, 5tate of Washington (hereinafter
called the "City" ) , for value received promises to pay
to bearer on the FIRST DAY OF JULY, 19 , the principal
sum of
FIVE THOUSAND DOLLARS
together with interest thereon at the rate of o
per annum, payable on July l, 1978, and semiannually
thereafter on the first day of January and July of
each year, upon presentation and surrender of the
attached interest coupons as they severally mature up
to the bond maturity date and with fu11 obligation
on the part of the City to pay interest at the same
rate from and after the bond maturity date until this
bond with interest is paid in full, or funds are
available in the "Renton 1977 Water and Sewer Revenue
Refunding Bond Redemption Fund IVo. 3" (hereinafter '
called the "Bond Fund") for payment in ful1. Both
principal of and interest on this bond are payable
in lavaful money of the United States o� America at
the office of the Director of Finance o� the City,
or, at the option of the holder, at either fiscal
agency of the State of Washington in the Cities of
Seattle, Washington, or New York, New York, solely
out of the 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 -certain fixed amounts out of the gross
revenues of the waterworks utility, including the
sewerage system as a part thereof, now belonging
to or which may hereafter belong to the City,
including a11 additions, extensions and betterments
thereof now or at any time made or constructed,
without regard to any fixed proportion, namely, amounts
sufficient to pay the principal of and interest on this
issue of bonds as� they respectively become due and to
accumulate a reserve, all at the times and in the
manner set forth in Ordinance No. (hereinafter
called the "Bond Ordinance") .
The gross revenues from � the combined water and
sewerage systems, comprising the waterworks util,ity
of the City, are hereby��pledged to such payment and
the bonds of this issue constitute a lien and charge
upon such revenues� prior and superior to any other
charges whatsoever, excluding charges �ox maintenance
and operation, except that the lien and charge upon
said revenues for this issue o� boncl.s sha1,1, be on a
parity with the lien and charge upon. such revenues �or
the outstanding "City��of Renton V�tate� and Sewer ReVenue
Refunding Bonds, 1977�, Zssue rdo. 2, " dated Noveznber l,
1977, and any other additiona7, water and sewer revenu,e
bonds hereafter issued on a parity wi.th such bonds, .in
accordance with the provisions of Section 13 of
Ordinance No. 3169 and Section 13 0� the Bond Ordinance.
This bond is one of a total issue o� $3, O,�k5,OQ0 par
value of bonds, all of-�like date, ,tenor and e�fect,
except as to maturities, interest rates and option of
redemption, all payable from the Bond Fund and all
issued by the City under and in pursuance of the laws
of the State of Washington, particularly Chapter 138,
Laws of 1965, lst Ex. Sess. , as amended, known as the
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� "Refunding Bond Act" (RCW Chapter 39.53) , for the
purpose of providing a part of the funds to refund,
pay and retire all of its outstanding "City of Renton
Water and Sewer Revenue Bonds, 1977, " dated June 1,
1977, all as provided in the Bond Ordinance, and is
issued in full compliance with the ordinances of the
City ancl the Constitution and laws of the State of
Washington. Reference is rnade to the Bond Ordinance
as more fully describing the covenants with 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 I
order, from money derived from any s'ource at the
following percentages of par, if redeemed at the
following times, plus �accrued interest to date of
redemption in each case: �
Call Date Call Pr'ice
July l, 1987, and January 1, ,1988 101-1/2%
July l, 19$8, ,and January l, 1989 101%
July l, 1989, and January l, 1990 100-1/2a II
July l, 1990, or any semiannual ,
interest payment date thereafter 1000 (Par)
Notice of such intended redemption shall be given by
publication thereof in the official newspaper of the
City at least once not less than 3p nor more than 45
days prior to the call date. Wri.tten notice shall also
be given to the principal office of Seattle-Northwest
Securities Corporation in 5eattle, Washington, or its
successor, 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, I1ew York, but the mailing
of such notice to such corporations sha11 not be a
condition precedent to the redemption of such bonds.
Interest on any bonds- so called for redemption sha11
cease on the date fixed �or 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 rnarket at any time at a price
not in excess of 101-1/20 of the par value if purchased
prior to July l, 1988, ar�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 i
fully carry out all covenants and meet all obligations
of the City as set forth in the Bond Ordinance.
It is hereby certified and declared that the bonds �
of this issue are issued pursuant to and in strict
compliance with the Constitution and laws of the State �
of Washington and the ordinances of the City, and that !,
all acts, conditions and things required to be done '�
precedent to and in the issuance of this bond have
happened, have been done and have been performed as
required by law.
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IN WITNESS WHEREOF, the City has caused this bond
to be signed� by the facsimile signature of its Mayor
and attested by the manual signature of its Clerk and
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 December, 1977.
CITY OF RENTON, WASHINGTON
By (.facsimile signature)
May or
ATTEST:
Clerk
The interest coupons attached to the Re-funding Bonds shall
be substantially in the following form:
Coupon No. _
$
(Unless the bond referred to below shall have been
previously redeemed)
On the FIRST DAY UF (JANUARY) (JULY) , 19 , the CITY
OF RENTON, WASHINGTON, upon presentation and surrehder
of this coupon will pay to bearer at the off ice of the
Director of Finance of the City, or, at the option of
the holder, at either fiscal agency of the State of
Washington in the Cities of Seattle, Washington, or
i�Tew York, New York, the sum shown hereon in lawful
money of the United States of America from the special
fund of the City.�known as the "Renton 1977 Water and
Sewer Revenue Re€unding Bond Redemption Fund No. 3, "
said sum being the interest then due on its "City of
Renton Water and Sewer Revenue Refunding Bond, 1977,
Issue No. 3," dated December l, 1977, ancl numbered
CITY OF RENTON, WASHINGTON
By (facsimile signature)
Mayor
ATTEST:
(facsimile signature)
Clerk i
The Refunding Bonds shall be printed on lithographed
forms, shall be signed by the facsimile signature of the Mayor and
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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� " w 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 tYie
principal of and interest on the Refunding Bonds or such portion
thereof included in the refunding plan as the same become due and
payable and to refund all such 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 States of America or other legal
investments sufficient in amount, together with known_ earned income
from the investments thereof, to make such payments and to accomplish
the refunding as scheduled (.hereinafter called the "trust account")
and shall irrevocably make provisions for redemption of such
Refunding Bonds, then in that case all right and interest of the
owners or holders of the Refunding Bonds to be so retired or refunded !�
and the appurtenant coupons (hereinafter collectively 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 payment of such Refunding Bonds shall
thereafter cease and become void, except such owners and holders
shall have the right to receive payment of the principal of and
interest on the defeased Refunding Bonds from the trust account
and, in the event the funds in the trust accoun,t are not available
for such payment, shall have the 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 against such Revenue or covenants with
respect thereto except to be paid therefrom. t�fter the establishing
and full funding of such trust account, the City nay then apply
any money in any other fund or account established for the payment
or redemption of the defeasea Refunding Bonds to any lawful purposes
' as it shall determine, subject only to the rights of holders of any ,
other bonds then outstanding.
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In the event that the 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 investments pending the prior redemption
of those Refunding Bonds being refunded and if such refunding plan
also provides that certain cash an.d/or direct obligations of the
United States of America or other legal investments are irrevocably
pledged 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
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 13. The City reserves the right to issue Future
Parity Bonds which will constitute a lien and charge upon the Revenue
of the Waterworks Utila.ty of the City on a parity with the 1977
Bonds, Issue No. 2, and the Refunding� Bonds, provided, the conditions
set forth in Section 15 of Ordinance No. 1450, as modified by the
provisions set forth in Section 13 of Ordinance No. 3169 , are met
and complied with at the time of the issuance o� such Future Parity
Bonds, which sections are by�:this reference incorporated herein
and made a part hereof and shall continue to be applicable even
though the "City of Renton Water and Sewer Refunding ana Improvement
Bonds, 1953, " have been paid and retired.
Section 14. Seattle-Plorthwest Securities Corporation
of Seattle, Washington, heretofore offered to purchase the Refunding
Bonds at a price of $99 .535336 per each $100 .00 par value plus
accrued interest to the date of delivery of the Refunding Bonds,
the City to furnish the printed Refunding Bonds and the unqualified
approving legal opinion of Messrs. Roberts, Shefelman, Lawrence,
Gay & Moch, municipal bond counsel of Seattle, Washington, and the
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purchaser to pay the cost of printing such Refunding Bonds and
the other costs as set forth in Section 6 above ana the purchaser
to provide the "Acquired Obligations" above referreci to as set
forth in such offer. Bond counsel' s opinion shall state that bond
counsel has not reviewed, and thus expresses no opinion concerning,
the completeness or accuracy of any official statement, offering
circular or otYier sales nlaterial relating to the issuance of the
Refunding Boncis or otherwise used in connection with the Refunding
Bonds. The City Council, being of the opinion that it is in the
best interests of the City to accept such offer, hereby accepts
the same. The Refunding Bonds shall, therefore, _immediately upon
their execution be delivered to the purchaser upon payment for
the Refunding �3onds in accordance with such offer.
Section 15. Pending the printing, execution and delivery
to the purchaser of the def initive Refunding Borids, the City may
cause to be executed and delivered to such purchaser a single
temporary Refunding Bond in the principal amount of $3, 045,000.
Such tentporary Refunding Bond shall bear the sarne date of issuance,
interest rates, principal payment dates anci terms and covenants as
the definitive Refunding Bonds, and shall be issued as a fu11y
registered bond in the name of such purchaser, and shall be in such
form as acceptable to such purchaser. Such temporary Refunding
Bond shall be exchanged for the definitive Refunding Bonds as soon
as the same are printed, executed and available for delivery by the
Director of Finance of the City. ''
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Section 16. This ordinance shall be in full force and
effect five days from and after its passage, approval and legal
publication.
PASSED BY THE CITY COUI�TCIL, this 12th day of December, 1977.
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Q. �?�ze�.� �
llELORES A. MEAD, Cit�t{.C�lerk
APPROVED BY THE 1�IAYOR, this 12th day of llecember, 1977. I
V!���;�2���'��x'��i���t.���
'C�HP,RT,ES �,l DELAURENTI , Mayor
7/
Approv d as to Form:
Cx��it.1'G-�-'�.`'
Actrhg City Attorney
vate of PubliCatiOn: December 16, 1977
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A G R E E r1 E iV T
THIS AGREEMEPI^1 made and entered into as of the �day
of December, 1977, by and between the CITY OF REPZ`I�OPJ, WASHIi1GTON, a
municipal corporation of the 5tate of Vdashington (the "City" } , and
PEOPLES IJATIONAL BANK OF WASHINGTON, Seattle, Washington (the
"Refunding Trustee" ) ;
W I T N E S S E T H:
; .
SECTION l. Recitals. The City now has outstanding its
"City of Renton Water and Sewer Revenue Refunding �3onds, 1977,"
issued under date of June l, 1977, in the aggregate principal amount
of $3,095, 000 .00 (hereinafter called the "1977 Bonds") . Pursuant
to Ordinance Iso. 3141 pertaining to the 1977 T�onds, the City in
the. manner provided therein may call the 1977 Bonds for redernption
as a whole, or in part in inverse numerical order, from money de.rived
from -any source at the following percentages of paz, ,i� redeerned
at the folJ.owing times, plus accrued interest to date of redemption
in each case:
Call Date Call Price
July l, 1987 , and January 1, 1988 lUl-1/20
July l, 1988, and January 1, ,1989 lUl%
Ju]:.y l, 1989, and January l, 1990 100-1/2%
July 1, 1990, or any semiannual interest
payrnent date thereafter 1000 (Par)
The City by Ordinance No. passed by the City Council and
approved by the Nayor on Dec�mber 12, 1977, has determined to pay
�
the principal of and interest on the 1977 Bonds coming due to and
including January 1, 1997 , and to redeem and retire on January l,
1997, the outstanding 1977 Bonds numbered 445 to 619 , inclusive,
maturing from July l, 1997, to July I, 1999 , inclusive, in accordance
with the terms of said Ordinance Ido. 3141 out of the proceeds of sale
of its "City of Renton ti�later and Sewer Revenue I2efunding Bonds, 1977,
Issue rdo. 3" (the "Refunding �3onds" ) , and other money of the City
legally available therefor.
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SEC^1IOld 2 . Provisions for the Payrnent and Retirement of
the 1977 Bonds. To accomplish the payment and retireinent of the
1977 Bonds, including the payment of the principal of and interest
on the 1977 Bonds coming due to and including January I, 1997, ana
to redeem anci retire on January l, 1997, the outstanding 1977 Bonds
numbered 445 to 619 , incl.usive, maturing from July 1, 1997, to �
July 1, 1999, inclusive, the City, siraultaneously with the delivery
of the Refunding Bonds issued pursuant to said Ordinance No. _ ,
does hereby agree to irrevocably deposit with the Refunding Trustee
,
in trust for the security and benefit o� the holders and owners of
the ].977 Bonds and the Refundi.ng Bonds the sum of $106,256.82 in
cash and Federal Home Loan Bank Bonds and United States Treasury
Certificates of Indebtedness, rTotes and Borids -- state and local
government series (commonly called "book entry" obligations (BE] )
with amounts, interest rates and maturities as more particularly
set forth in Schedule "A" attached to this t�greement and by this
reference incorporated herein, which securities are hereinafter
referred to as "Obligations," and such cash and Obligations,� with
the investment incorne therefrom, will be sufficient to provide for
the payment of the principal of and interest on the 1977 Bonds
coming due up to and including January l, 1997, and to redeem and
retire on January l, 1997, the outstanding 1977 Bonds numbered 445
to 619, inclusive, maturing from July l, 1997, to July l, 1999 ,
inclusive. ,
On or before the del'ivery of the Refunding Boncls the
,
City agrees that it will cause to be delivered to the Refunding
Trustee a statement setting forth the amount of interest and
principal to be paid on each semiannual interest payment date oii
the 1977 Bonds up through January l, 1997, and the amount of
principal required on January l, 1y97, to pay and redeem the
outstanding 1977 Bonds numbered 445 to 619 , inclusive.
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' The City by said Ordinance T1o, has irrevocably
called for redemption or prepayment on January l, 1997, the
outstanding 1977 Bonds numbered 445 to 619 , inclusive, at the
par value thereof plus accrued interest to such date of redemption.
Such call for redemption or prepayment shall be irrevocable upon
the delivery of the Refunding Bonds. The Director of Finance of
the City shall provide for the publication and mailing of the
proper notice of such redemption or prepayment in accordance with
the applicable provisions of Ordinance No. 3141 pertaining to the
1977 Bonds.
Provision for the giving of such notice of redemption or
prepayment has irrevocably been made by tYie City.
SECTION 3. Disbursernents by the Refunding Trustee. The
Refunding Trustee� shall present for payment on the due date thereof
the Obligations so deposited and shall apply the proceeds derived
� therefrom in accordance with the provisions of this section.
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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 the 1977 Bonds corning due and
payable on or before January �l, 1997, and in amounts sufficient to
pay on January l, 1997 , the redemption price with respect to
outstanding 1977 Bonds numbered 445 to 619, inclusive.
SECTION 4 . Pdonreinvestment of Funds; Custody and
Safekeepi.ng of Obligations. All money deposited witYi the
Refunding Trustee or receive� ,by the Refunding Trustee as maturing
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pzincipal or interest on Obl 'igations prior to' the time required
to make the payments hereinbefore set forth shall be held by the
Refunding Trustee and shall not be reinvested.
Al1 income derived from the Obligations and any money
deposited with the Refunding Trustee pursuant to Section 2 tiereof
in the hands of the Refunding Trustee (which money is iiot required
to make the payments hereinbefoxe required to be made) sha11 be paid
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� to the llirector of Finance of the City for the credit of the "1977
Refunding Account" in the "Renton 1977 V�ater and Sewer Revenue Bond
Fund" of the City (tiereinafter called the "Refunding Account") as
and when realized and collected for use and application as other
money deposited in said Refunding Account.
For as long as any of the 1977 Bonds are outstanding, on
or before the lOth day of each month, commencing with the month of
February, 1978, the Refunding Trustee shall render a statement as of
the last day of the preceding month to the Director of Finance of
the City, which statement shall set forth the Obligations which have
matured and the amounts- received by the Re�unding Trustee by reason
of such maturity and the interest income received, the amounts
paid to such llirector of Finance for credit to the Refunding Account
and the dates of such payments for the payment of the interest on
and principal of the 1977 Bonds as the sar.le shall become due and/or
payable, the final payment of the redemption price for 1977 Bonds
numbered 445 to 619 , inclusive, on January 1, 1997, and any other
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transactions of the Refunding Trustee pertaining to its duties and
obligations as set forth herein.
Al1 Obligations, money and investment income deposited
wa.th or received by the Refunding Trustee pursuant to this Agreement
shall be subject to the trust created by this Agreement and the
Refunding Trustee shall be liable for the preservation and safekeeping
' thereof.
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Reference herein tQ payments nlade to the Director of
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Finance of the City sha11 also be deemed to include payments macl.e
to the fiscal agency of the 5tate of V�ashington on behalf of such
Director of Finance.
SECTION 5. Duties and Obligations of Refunding �l�rustee.
The duties and obligations of the Refunding Trustee shall be as
prescribed by the provisions of this I�greement, and the Refunding
Trustee shall not be liable except for the performance of its duties
and obligations as specifically set forth herein and to act in good
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� faith in the performance thereof anci no implied duties or
obligations shall be incurred by sucti Refunding Trustee other than
those specified herein. /
The Refunding Trustee may consult with counsel of its
choice and the opinion of such counsel. shall be full and complete
authorization and protection in respect of any action taken or not
taken or suffered by it hereunder in good faith and in accordance
with the opinion of such counsel.
Provisions for the fees, cornpensation and expenses of the
Refunding Trustee satis*factory to it have been made.
� CITY Ok' RENTON, WASHIIQGTON
� By
> Mayor
ATTEST:
City Clerk
PEOPLES NP,TIONAL BANI� OF WASHINGTOT�T
By .
Trust Off icer
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SC�i�DULE "A"
CITY fl� �tEH'�4N
SCHEDLIL� OF ACQ�JIR�,D �BLIGA�iQNS
SECURITY PAtt �'[A'�i1�t�'�Y
D�SCRIYTdO�v A'�i(3UNT C(�iJFC1N �ATE
BE 737,004 �.2500�0 1/t�l/91
BE 26��,Opfl 7.25(�t�E�O 7i01/�6
BE 244,OOU 7.25�flt10 71Oi/95
f3� 228,000 7.25QOOU ?/{�1/94
B� 211,�fl0 7.2Sf��04 7/J1/93
ti� i94,�Q0 7.2500�0 �i01/92
BE 188,0(30 7.250�U(3 7/�1l91
B�: �76.t�00 4.89�pP10 7/pI19U
BE 145,fla0 (i.�J0�Q0 7lft�/8�3
� BE �9,�Otl fl.UOdODfl 7/Q11S8
' B�: 62,�00 O.DOJ(3�0 7/t�3/S7
� BE 65,�00 O.�OOE3�fl iJ�i/8b
BE 1,0�4 0.�3JOt}t�0 1/�1/�6
SE 52,pQ0 �.00OU(30 �/O1/85
BE 2,p(30 O.�OOOOfl 1/Oi/35
BE 59,Ofl0 O.OdQO�fl �101/�34
B� 4,�Dp0 U.�Ol�JflO 1101/�4
�E 56,Q�Q fl,�Jt�U�00 7lU�/83
BE 6,Ot�0 (►.00i)OQO 1/O1/33
' BE 51,t3�4 Q.OQ�0�0 7101./8Z
BE 7,G4p U.000�00 i/�31/�2
BE 1 J,�40 O.O��OOt? 7lt�l!8 i
8E 8,pp0 �.�'JO(�t?0 1/�1l8i
BE 8,pQf� fl.(�OOOC� 7!{�1/8.�
BF 7,�U0 O.�JOOa�O 1/J1/�0
' BE H,0�0 Q.000(3�4 7/O1/7�
BE 7�t304 0.0003t30 1/Ul/79
s� �_��nn o.000ac�� ��:�r/��
2,903;OOfl
FLT3 132,00� 7.950�'�0 10/21/96
Total Ear Va1.ue 3,035,000