HomeMy WebLinkAboutORD 4410 ' . Amends ORD. ��: 3896, 3970, 4068, '
4157, 4211, 4232,
4294, 4354
- CITY OF RENTON, WASHINGTON
ORDINANCE NO. 4410
AN ORDINANCE relating to the watexworks utility of
the City, including the sewerage system as a part
thereof; specifying and adopting a system or plan of
additions to and betterments and extensions of the
waterworks utility;, providing for the issuance of
$14, 145,000 par value Water and Sewer Refunding and
Improvement Revenue Bonds, 1993, of the City �or the
p�rpose of obtaining a part of- the funds with which to
pay part of the cost of carrying out that system or plan
and advance rePund all or a part of the City's
outstanding .Water and� Sewer Revenue Bonds, 1988, Water
and Sewer Revenue �Bonds, 1989, WateX and- Sewer Revenue
Refunding�Bonds, 1989, and Water and Sewer Revenue Bonds,
1990; fixing the date, form, denominations, maturities,
interest rates, terms and covenants of those bonds;
creating a special bond redemption account to provide for
- the paymen� of the bonds; providing for and authorizing
the purchase of certain obligations out of a portion of
the proceeds of the sale of the bonds authorized herein
and for the use and application of the money derived from
those obligations; authorizing the execution of a
cor�tract with Key Bank of Washington of Tacoma,
Washinqton, as refunding trustee; and approving the saie
and groviding for the delivery of the bonds to
Seattle-Northwest Securities Corporation of Seattle,
Washington.
WHEREAS, by Ordinance No. 1156, as amended by Ordinances Nos.
1157 and 1173., the sewerage system of the City of Renton (the
"City"j has become and is considered a part of the waterworks
utility of the City (defined below as the "Waterworks Utility") ;
and
_ WHEREAS, by Ordinance No. 2020 the system of storm or surface
water sewers was determined to consist as a part of the sewerage
system and, together with the sewerage system, combined with the
Waterworks Utility; and
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TABLE OF CONTENTS
Page No.
Recitals . . . . . . . . . . . . . . . . . . . . . . . 1
SECTIONI. Def initions . . . . . . . . . . . . . . . . 8
SECTION II. Adoption of Plan of Additions and
Betterments . . . . . . . . . . . . . . . . . 13
SECTION III. Findings Regarding Parity Provisions . . . . . 14
SECTION IV. Authorization and Description of Bonds . . . . 15
SECTION V. Registration and Transfer of Bonds . . . . . . 16
SECTION VI. Payment of Bonds . . . . . . . . . . . . . . . 17
SECTION VII. Optional Redemption, Mandatory Redemption
and Open Market Purchase of Bonds . . . . . . 17
SECTION VIII. Notice of Redemption . . . . . . . . . . . . . 19
SECTION IX. Failure to Redeem Bonds . . . . . . . . . . . 20
SECTION X. Creation of Account and Subaccounts;
- Deposits into Accounts . . . . . . . . . . . 20
SECTION XI. Flow of Funds . . . . . . . . . . . . . . . . 23
SECTION XII. Pledge of Revenue and Lien Position . . _ . . . 24
SECTION XIII. Findings Regarding Sufficiency of Revenue . . 24
SECTION XIV. Covenants . . . . . . . . . . . . . . . . . . 25
SECTION XV. Refunding of the Refunded Bonds . . . . . . . 28
(a) Appointment of Refunding Trustee . . . . 28
(b) Acquisition and Substitution of
Acquired Obligations . . . . . . . . 28
(c) Substitution of Acquired Obligations . . 28
(d) Administration of Refunding Plan . . . . 30
(e) Authorization for Refunding Trust
Agreement . . . . . . . . . . . . . . 31
SECTION XVI. Calls for Redemption of the Refunded Bonds . . 31
_ SECTION XVII. City Findings with Respect to Refunding . . . 32
SECTION XVIII. Form and Execution of Bonds . . . . . . . . . 33
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ORDINANCE NO. 4410
Page No.
SECTION XIX. Bond Registrar . . . . . . . . . . . . . . . . 34
SECTION XX. Bonds Negotiable . . . . . . . . . . . . . . . 35
SECTION XXI. Refunding or Defeasance of Bonds . . . . . . . 35
SECTION XXII. Provision for Future Parity Bonds . . . . . . 37
SECTION XXIII. Deposit of Bond Proceeds . . . . . . . . . . . 37
SECTION XXIV. Approval of Bond Purchase Contract . . . . . . 38 I
SECTION XXV. Preliminary Official Statement Deemed
��Final" . . . . . . . . . . . . . . . . . . . 39
SECTION XXVI. Temporary ,Bond „ . . . . . . . . . . . . a . . 39
SECTION XXVII. Effective 'Date of Ordinance . . . . . . . . . 40
Signatures . . . . . . . . . . . . . . . . . . . . . . . 40 �
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ORDINANCE NO. 4410
WHEREAS, by Ordinance No. 1450, the City provided for the
issuance of its Water and Sewer Refunding and Improvement Revenue
Bonds, 1953 (the "1953 Bonds") , and, by Section 15 of that
ordinance, established certain conditions for the issuance of
additional water and sewer revenue bonds on a parity of lien with
the 1953 Bonds; and '
WHEREAS, all of the water and sewer revenue bonds of the City
issued on a parity of lien with the 1953 Bonds pursuant to the
original provisions of Section 15 of Ordinance No. 1450 have been
paid and redeemed, or irrevocable provision for their payment and
redemption has been made; and
WHEREAS, by Ordinance No. 3169, the City authorized the
issuance of its Water and Sewer Revenue Refunding Bonds, 1977,
Issue No. 2 (the "1977 Bonds, Issue No. 2") , and by Section 13 of
that ordinance incorporated and amended Section 15 of Ordinance No.
1450, all of which bonds have been paid and redeemed; and
WHEREAS, by Ordinance No. 3188, the City authorized the
issuance of its Water and Sewer Revenue Refunding Bonds, Issue
No. 3 (the "1977 Bonds, Issue No. 3") , and by Section 13 of that
ordinance incorporated Section 15 of Ordinance No. 1450, as
modified by Seetion 13 of Ordinance No. 3169; and
WHEREAS, by Ordinance No. 3720, the City authorized the
issuance of its Water and Sewer Revenue Bonds, 1983 (the "1983
Bonds") , all or which 1983 Bonds have been paid and redeemed, and
by Section 12 of that ordinance further modified and strengthened
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ORDINANCE NO. 4410
the provisions of Section 15 of Ordinance No. 145U, as modified by
Section 13 of Ordinance No. 3169; and
WHEREAS, the City presently has outstanding, in addition to
the 1977 Bonds, Issue No. 3, its Water and Sewer Revenue Bonds,
1985 (the "1985 Bonds") , issued pursuant to Ordinance No. 3896,
Water and Sewer Revenue Bonds, 1986 (the "1986 Bonds") , issued
- pursuant to Ordinance No. 3970, Water and Sewer Revenue Bonds, 1987
(the "1987 Bonds") , issued pursuant to Ordinance No. 4068, Water
and Sewer Revenue Bonds, 1988 (the "1988 Bonds") , issued pursuant
to Ordinance No. 4157, Water and Sewer Revenue Bonds, 1989 (the
"1989 Bonds") , issued pursuant to Ordinance No. 4211, Water and
Sewer Revenue Refunding Bonds, 1989 (the "1989 Refunding Bonds") i
issued pursuant to Ordinance No. 4232, Water and Sewer Revenue
Bonds, 1990 (the "1990 Bonds") , issued pursuant to Ordinance No.
4294, and Water and Sewer Refunding and Improvement Bonds, 1992
(the "1992 Refunding Bonds") issued pursuant to Ordinance No. 4354,
all of which bonds were issued on a parity of lien with the 1977
- Bonds, Issue No. 3; and
WHEREAS, the parity provisions of Section 13 of Ordinance No.
3188, which incorporated therein Section 15 of Ordinance. No. 1450, '
as modified by Section 13 of Ordinance No. 3169, and as further �I
modified and strengthened by Section 12 of Ordinance No. 3720, ',
provide that the City may issue additional water and sewer revenue
bonds which will constitute a charge and lien upon the revenue of
the Waterworks Utility of the City on a parity with the 1977 Bonds,
Issue No. 3, the 1985 Bonds, the 1986 Bonds, the 1987 Bonds, the
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ORDINANCE NO. 4410
1988 Bonds, the 1989 Bonds, the 1989 Refunding Bonds, the 1990
Bonds, the 1992 Refunding Bonds and any bonds issued thereafter and
having a charge and lien upon the revenue of the Waterworks Utility
on a parity with those bonds on compliance at the time of the
issuance of such additional bonds with the following conditions:
" (a) All payments required by any ordinance to be paid
into any bond redemption funds and accounts thereof
created to secure the payment of bonds issued on a parity
of lien herewith shall have been made into the respective
bond redemption funds and accounts thereof for the
payment of such bonds and no deficiency exists therein;
and
" (b) The revenues of said waterworks system, including
- the sewerage system, shall be and be deemed sufficient,
after the payment of operation and maintenance costs and
taxes, based upon the historical experience of said
.systems or the pro forma revenues under then existing
rates over a period of any twenty-four consecutive months
out of the thirty-six months immediately preceding the
time of the issuance of such additional bonds, to equal
at least 1.3 times the average annual principal and
interest requirements of the bonds of this issue then
outstanding and of the revenue bonds proposed to be so
issued. Such determination of the sufficiency of the
revenues shall be made and certified to by an engineer
e}cperienced in municipal utilities; and
" (c) The ordinance authorizing the issuance of such
additional revenue bonds shall provide for the setting
aside into a reserve fund or account of an amount not
less than the average annual debt service requirement,
both principal and interest of the additional revenue
bonds proposed to be so issued, which reserve fund or
account shall be maintained in such amount so long as any
of said bonds are outstanding to the last maturity
- thereof";
and
WHEREAS, by Ordinance No. 4157 the City reserved the right to
redeem the 1988 Bonds maturing on or after June 1, 1999, at par
plus accrued interest on June 1, 1998, and on any interest payment
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ORDINANCE NO. 4410
date thereafter, and there are presently outstanding $2,320,000
principal amount of 1988 Bonds maturing on June 1 of the years 1999
through 2003, inclusive, and 2008 (the "1988 Refunded Bonds") ,
bearing various interest rates from 7. 15% to 7.85%; and
WHEREAS, by Ordinance No. 4211 the City reserved the right to
redeem the 1989 Bonds maturing on or after May 1, 2000, at par plus i
accrued interest on May 1, 1999, and on any interest payment date
thereafter, and there are presently outstanding $1,165, 000
principal amount of 1989 Bonds maturing on May 1 of the years 2000
through 2009, inclusive (the "1989 Refunded Bonds") , bearing
interest at various rates from 7.25% to 7.50%; and
WHEREAS, by Ordinance No. 4232 the City reserved the right to
redeem the 1989 Refunding Bonds maturing on or after April 1, 1999,
- at par plus accrued interest on or after April 1, 1998, as a whole
at any time and in part on any interest payment date, and there are
presently outstanding $1,440, 000 principal amount of those bonds
maturing on April 1 of the years 1999 through 2005, inclusive (the
"Refunded 1989 Refunding Bonds") , bearing interest at various rates
from 6.8� to 7.1�; and
WHEREAS, by Ordinance No. 4294 City reserved the right to
redeem the 1990 Bonds maturing on or after October 1, 2001, at par
plus accrued interest on or after October 1, 2000, as a whole at
any time and in part on any interest payment date, and there are
presently outstanding $2,715, 000 principal amount of those bonds �
- maturing on October 1 of the years 2001 through 2010, inclusive
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ORDINANCE NO. 4410
(the "1990 Refunded Bonds") , bearing interest at various rates from
7.0$ to 7.375�; and
WHEREAS, the City Council has determined that the 1988
Refunded Bonds, the 1989 Refunded Bonds, the Refunded 1989
Refunding Bonds and the 1990 Refunded Bonds (collectively, the
"Refunded Bonds") may be refunded by the issuance and sale of the �
water and sewer revenue bonds authorized herein (the "Bonds") so
that a substantial savings will be effected by the difference
between the principal and interest cost over the life of the
portion of the Bonds allocated to the refunding and the principal
and interest cost over the life of the Refunded Bonds but for such
refunding, which refunding will be effected by
(a) The issuance of the Bonds and the payment of the
costs of issuance of the Bonds and the costs of the
refunding;
(b) The payment of the interest on the 1988 Refunded
Bonds when due up to and including June 1, 1998,
and, on June 1, 1998, the call, payment and
redemption of all of the outstanding 1988 Refunded
Bonds at par;
(c) The payment of the interest on the 1989 Refunded
Bonds when due up to and including May 1, 1999,
and, on May 1, 1999, the call, payment and
redemption of all of the outstanding 1989 Refunded
Bonds at par;
(d) The payment of the interest on the Refunded 1989
Refunding Bonds when due up to and including
April 1, 1998, and, on April 1, 1998, the call,
payment and redemption of all of the outstanding
Refunded 1989 Refunding Bonds at par; and
(e) The payment of the interest on the 1990 Refunded �
Bonds when due u to and includin October 1 2000
P g , ,
and, on October 1, 2000, the call, payment and
redemption of all of the outstanding 1990 Refunded
Bonds at par;
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ORDINANCE NO. 4410
and
WHEREAS, in order to effect the refunding in the manner that
will be most advantageous to the City and its ratepayers, the City
Council finds it necessary and advisable that certain Acquired
Obligations (hereinafter defined) bearing interest and maturing at
the time or times necessary to accomplish the refunding as
aforesaid be purchased out of a portion of the proceeds of the sale
of the Bonds; and �
WHEREAS, on June 11, 1984, the City Council passed and the
Mayor approved Resolutions Nos. 2546 and 2547 adopting the 1983
Comprehensive Sanitary Sewer Plan and 1983 Comprehensive Water
System Plan, respectively, for the City, and for the purpose of
financing facilities in those plans it is necessary to specify and
adopt them by ordinance; and
WHEREAS, the City Council has determined that it is necessary
and in the best interests of the City that certain additional
improvements described in the 1983 Comprehensive Water System Plan
and the 1983 Comprehensive Sanitary Sewer Plan be made and there be
adopted a system or plan of additions to and betterments and �
extensions of the Waterworks Utility; and
- WHEREAS, the City Council has determined that it is necessary
to issue and sell $14, 145, 000 par value of Bonds to provide a part
of the funds necessary to carry out the system or plan providing
for additions to and betterments and extensions of the Waterworks
Utility, to advance refund the Refunded Bonds and to pay the costs
of issuance and sale of the Bonds; and
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ORDINANCE NO. 4410
WHEREAS, Seattle-Northwest Securities Corporation of Seattle, I
Washington, has offered to purchase the Bonds under the terms and
conditions hereinafter set forth; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO ORDAIN
as follows:
SECTION I. Definitions. As used in this ordinance, the
following words shall have the following meanings: 'I
"Acquired Obligations" shall mean those United States Treasury
Certificates of Indebtedness, Notes and Bonds--State and Local
Government Series and other direct, noncallable obligations of the
United States of America purchased to accomplish the refunding of
the Refunded Bonds as authorized by this ordinance. I
"Annual Debt Service" for the Bonds shall mean all the I
interest plus all principal which will mature or come due in any
year.
"Average Annual Debt Service" shall mean the sum of the Annual
Debt Service for the remaining years to the last scheduled maturity
of the applicable bond issue or issues divided by the number of !
those years. I
"Bond Fund" shall mean that special fund of the City known as '
the 1993 Water and Sewer Revenue Bond Redemption Account created by
this ordinance as a separate account in the Water and Sewer Revenue
Parity Bond Fund for the payment of the principal of and interest
on the Bonds.
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ORDINANCE NO. 4410
"Bond Registrar" shall mean the fiscal agencies of the State
of Washington in SeattTe, Washington, and New York, New York, as
the same shall be designated from time to time.
"Bonds" shall mean the $14, 145, 000 par value City of Renton
Water and Sewer Refunding and Improvement Revenue Bonds, 1993,
authorized to be issued by this ordinance.
"1977 Bonds, Issue No. 3" shall mean the outstanding Water and
Sewer Revenue Refunding Bonds, Issue No. 3 .
"1985 Bonds" shall mean the outstanding Water and Sewer
Revenue Bonds, 1985, maturing up to and including April 1, 1995.
"1986 Bonds" shall mean the outstanding Water and Sewer
Revenue Bonds, 1986, maturing up to and including February 1, 1996.
"1987 Bonds" shall mean the outstanding Water and Sewer
Revenue Bonds, 1987, maturing up to and including June 1, 1997.
"1988 Bords" shall mean the outstanding Water and Sewer
Revenue Bonds, 1988, maturing up to and including June 1, 1998.
- "1989 Bonds" shall mean the outstanding Water and Sewer
Revenue Bonds, 1989, maturing up to and including May 1, 1999.
"1989 Refunding Bonds" shall mean the outstanding Water and
Sewer Revenue Refunding Bonds, 1989, maturing up to and including
April 1, 1998.
"1990 Bonds" shall mean the outstanding Water and Sewer
Revenue Bonds, 1990, maturing up to and including October 1, 2000.
"1992 Refunding Bonds" shall mean the outstanding Water and
Sewer Refunding and Improvement Revenue Bonds, 1992 . I
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ORDINANCE NO. 4410
"City" shall mean the City of Renton, Washington, a duly
organized and legally existing noncharter code city under the laws
of the State of Washington.
"Code" shall mean the Internal Revenue Code of 1986, as
amended, and applicable rules and regulations promulgated
thereunder.
"Future Parity Bonds" shall mean all water and sewer revenue
bonds of the City issued after the date of the issuance of the
Bonds and having a lien and charge on the Revenue of the Waterworks
Utility on a parity with the lien and charge on such Revenue for
the payment of the principal of and interest on the Outstanding
Parity Bonds and the Bonds.
"Maintenance and Operation Expense" shall mean all expenses �I
incurred by the City in causing the Waterworks Utility to be II�
operated and maintained in good repair, working order and I�
condition, which shall not include any depreciation expenses or
taxes or charges in lieu of taxes levied or imposed by the City.
"Outstanding Parity Bonds" shall mean the 1977 Bonds, Issue
No. 3, the 1985 Bonds, the 1986 Bonds, the 1987 Bonds, the 1988
Bonds, the 1989 Bonds, the 1989 Refunding Bonds, the 1990 Bonds and ��I
the 1992 Bonds.
"Principal and Interest Account" shall mean the subaccount of
that name created in the Bond Fund by this ordinance for the
payment of the principal of and interest on the Bonds.
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ORDINANCE NO. 4410
"Refunded Bonds" shall mean, collectively, the 1988 Refunded
Bonds, the 1989 Refunded Bonds, the Refunded 1989 Refunding Bonds
and the 1990 Refunded Bonds.
"1988 Refunded Bonds" shall mean the Water and Sewer Revenue
Bonds, 1988, maturing in the years 1999 through 2003, inclusive, ,
and in the year 2008, irrevocable provision for the payment and
redemption of which is made herein.
"1989 Refunded Bonds" shall mean the Water and Sewer Revenue
Bonds, 1989, maturing in the years 2000 through 2009, inclusive,
irrevocable provision for the payment and redemption of which is
made herein. ,
"Refunded 1989 Refunding Bonds" shall mean the Water and Sewer
Revenue Refunding Bonds, 1989, maturing in the years 1999 through
2005, inclusive, irrevocable provision for the payment and
redemption of which is made herein.
"1990 Refunded Bonds" shall mean the Water and Sewer Revenue
Bonds, 1990, maturing in the years 2001 through 2010, inclusive,
irrevocable provision for the payment and redemption of which is
made herein.
"Refunding Plan" shall mean:
(a) the placement of sufficient proceeds of the Bonds
which, with other money of the City if necessary,
will acquire the Acquired Obligations to be
deposited, with cash, if necessary, with the
Refunding Trustee;
�- (b) the payment of the interest on the 1988 Refunded
Bonds when due up to and including June 1, 1998,
I and, on June 1, 1998, the call, payment and
redemption of all of the outstanding 1988 Refunded
Bonds at par;
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ORDINANCE NO. 4410
(c) the payment of the interest on the 1989 Refunded
Bonds when due up to and including May 1, 1999,
and, on May 1, 1999, the call, payment and
redemption of all of the outstanding 1989 Refunded
Bonds at par;
(d) the payment of the interest on the Refunded 1989
Refunding Bonds when due up to and including
_ April 1, 1998, and, on April 1, 1998, the call,
payment and redemption of all of the outstanding
Refunded 1989 Refunding Bonds at par;
(e) the payment of the interest on the 1990 Refunded
Bonds when due up to and including October 1, 2000,
and, on October 1, 2000, the call, payment and
redemption of all of the outstanding 1990 Refunded
Bonds at par; and ,
(f) the payment of the costs of issuance of the Bonds
and the costs of carrying out the foregoing
elements of the Refunding Plan. ,
"Refunding Trust Agreement" shall mean a Refunding Trust
Agreement or Refunding Escrow Agreement between the City and the
Refunding .Trustee substantially in the form of that which is on
file with the City Clerk and by this reference incorporated herein. I
"Refunding Trustee" shall mean Key Bank of Washington of
Tacoma, Washington, serving as trustee or escrow agent or any
successor trustee or escrow agent.
"Reserve Account" shall mean the subaccount of that name
created in the Bond Fund by this ordinance for the purpose of
securing the payment of the principal of and interest on the Bonds.
"Revenue of the Waterworks Utility" shall mean all the
earnings and revenue received by the Waterworks Utility from any
source whatsoever, including payments received under contract with
other municipal corporations for water service, except general
taxes, charges in lieu of taxes, assessments in any utility local
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ORDINANCE NO. 4410
improvement district hereafter created, proceeds from the sale of
City property, bond proceeds and earnings subject to a federal tax
or rebate requirement.
"Term Bonds" shall mean Bonds scheduled to mature in 2013 and
any Outstanding Parity Bonds and/or Future Parity Bonds identified
as such in the ordinance authorizing the issuance thereof, the
payment of which is provided for by a requirement for mandatory
deposits of money into the principal and interest account of the
bond redemption fund created for the payment of such issue of bonds
in accordance with a mandatory sinking fund requirement.
"Water and Sewer Revenue Parity Bond Fund" shall mean the fund
of that name created by Ordinance No. 3896.
"Waterworks Utility Fund" shall mean that special fund of the
City into which all of the Revenue of the Waterworks Utility
(except for earnings in any special fund for the redemption of
revenue obligations of the Waterworks Utility) shall be deposited.
"Waterworks Utility" shall mean the combined water and
sewerage syste�s, including the storm and surface water sewers, of
the City as the same may be added to, improved and extended for as
� long as any of the Outstanding Parity Bonds, the Bonds and any
Future Parity Bonds are outstanding.
SECTION II. Adoution of Plan of Additions and Betterments.
The City specifies, adopts and orders the carrying out of a system
or plan of additions to ancl betterments and extensions of the
Waterworks Utility consisting of the improvements, acquisitions and
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work described in Exhibit A attached hereto and by this reference
made a part hereof.
There shall be included in the foregoing system or plan the
acquisition and installation of all necessary valves, pumps,
fittings, couplings, connections, equipment and appurtenances, the
acquisition of any easements, rights-of-way and land that may be
required and the performance of such work as may be incidental
thereto and necessary.
All of the foregoing shall be in accordance with the plans and
specifications therefor prepared by the City's engineers and
consulting engineers.
_ The City Council may modify the details of the foregoing
system or plan where, in its judgment, it appears advisable if such
modifications do not substantially alter the purposes of that
system or plan.
The life of the improvements comprising the foregoing system
or plan of additions to and betterments and extensions of the
Waterworks Utility is declared to be at least 20 years. The
estimated cost of the acquisition, construction, installation and
financing of the above-described improvements is declared to be
approximately $9,946, 000. That cost shall be paid from the
proceeds of the Bonds authorized in this ordinance, proceeds of
grants and loans anticipated to be received by the City and other
money of or received by the City which is made available therefor.
SECTION III. Findings Regarding Parity Provisions. The City
Council finds that all payments required by Ordinances Nos. 3188, I
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ORDINANCE NO. 4410
3896, 3970, 4068, 4157, 4211, 4232, 4294 and 4354 for the
Outstanding Parity Bonds have been made into the respective bond
redemption funds and accounts therein for the Outstanding Parity
Bonds, that provision hereinafter is made for the accumulation of
the amounts required in the Reserve Account of the Bond Fund, and
that there will be on file prior to the issuance and delivery of
the Bonds a certificate of an engineer experienced in municipal
utilities, that the Revenue of the Waterworks Utility is sufficient
to meet the 1.3 coverage requirement of those ordinances.
SECTION IV. Authorization and Description of Bonds. For the
purpose of providing a part of the money required to carry out the
system or plan of additions to and betterments and extensions of
the Waterworks Utility as herein specified, adopted and ordered to
be carried out and to carry out the Refunding Plan, including the
payment of the costs of issuance and sale of the Bonds, the City
shall issue the Bonds in the aggregate principal amount of
$14, 145, 000. The Bonds shall be designated City of Renton Water
and Sewer Refunding and Improvement Revenue Bonds, 1993; shall be
dated August 1, 1993; shall be in the denomination of $5, 000 or any
integral multiple thereof within a single maturity; shall be
numbered separately, in the manner and with any additional
designation as the Bond Registrar deems necessary for the purpose
of identification; shall bear interest (computed on the basis of a
360-day year of twelve 30-day months) , payable on October 1, 1993,
a i
, n� semiannua_ly thereafter �n each succeeding april 1 and
October 1 to the maturity or earlier redemption of the Bonds; and
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ORDINANCE NO. 4410
shall mature on October 1, 1993, and on April 1 in the years and
amounts and bear interest at the rates per annum as follows:
Maturity Interest
Dates Amounts Rates
October 1, 1993 $ 180, 000 3 .000�
April 1, 1994 255, 000 3.000
April 1, 1995 265, 000 3 .500
April 1, 1996 280,000 3 .900
April 1, 1997 285,000 4.000
April 1, 1998 300,000 4.200
April 1, 1999 690, 000 4.400
- April 1, 2000 735, 000 4.600
April l, 2001 970, 000 4.700
April 1, 2002 1, 005, 000 4.800
April 1, 2003 1,070, 000 4.900
' April 1, 2004 1,125,000 5.000
April 1, 2005 1, 175, 000 5.100
April 1, 2006 985,000 5.200
April 1, 2007 1, 040, 000 5.300
April 1, 2008 1, 100, 000 5.400
** ** **
April 1, 2013 2,685,000 5.375
The above maturity amounts are allocated to paying the costs
of the system or plan of additions to and betterments and
extensions of the Waterworks Utility and the carrying out of the
Refunding Plan related to the Refunded Bonds in accordance with the
applicable schedule attached to the Bond Purchase Contract
incorporated pursuant to Section XXIII.
SECTION V. Rectistration and Transfer of Bonds. The Bonds
shall be issued only in registered form as to both principal and
interest and recorded on books or records maintained by the Bond
Registrar (the "Bond Register") . The Bond Register shall contain
the name and mailing address of the owner of each Bond and the
principal amount and number of each of the Bonds held by each
owner. I
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Bonds surrendered to the Bond Registrar may be exchanged for
Bonds in any authorized denomination of an equal aggregate
principal amount and of the same interest rate and maturity. Bonds
may be transferred only if endorsed in the manner provided thereon
and surrendered to the Bond Registrar. Any exchange or transfer
shall be without cost to the owner or transferee. The Bond
Registrar shall not be obligated to exchange or transfer any Bond
during the 15 days preceding any principal payment or redemption
date.
SECTION VY. Payment of Bonds. Both principal of and interest
on the Bonds shall be payable in lawful money of the United States
of America. Interest on the Bonds shall be paid by checks or
drafts mailed by the Bond Registrar on the interest payment date to
the registered owners at the addresses appearing on the Bond
Register on the 15th day of the month preceding the interest I
payment date. Principal of the Bonds shall be payable upon
presentation and surrender of the Bonds by the registered owners at
either of the principal offices of the Bond Registrar at the option
of the owners. The Bonds shall be payable solely out of the Bond
Fund and shall be a valid claim of the owners thereof only as
against the B�nd Fund and the amount of the Revenue of the
Waterworks Utility pledged to that fund and shall not be general
obligations of the City.
SECTION VII. Optional Redemption, Mandatory Redemption and
Open Market Purchase of Bonds. Bonds maturing in the years 1993
through 2003, inclusive, shall be issued without the right or
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ORDINANCE NO. 4410 �
option of the City to redeem those Bonds prior to their stated
maturity dates. The City reserves the right and option to redeem
Bonds maturing on or after April 1, 2004, prior to their stated
maturity dates from funds from any source on or after April 1,
2003, as a whole at any time or in part on any interest payment
date within one or more maturities selected by the City (and by lot I
within a maturity in such manner as the Bond Registrar shall
determine) at the prices, expressed as a percentage of par, set
forth in the following schedule, plus accrued interest to the date
fixed for redemption:
Redemption Date Redem�tion Price
April 1, 2003, through March 31, 2004 101�
April 1, 2004, and thereafter 100�
Bonds maturing in 2013 are Term Bonds and, if not redeemed
under the optional redemption provisions set forth above or
purchased in the open market as set forth below, shall be called
for redemption by lot (in such manner as the Bond Registrar shall
determine) at par plus accrued interest on April 1 in the years and
amounts as follows:
Mandatory Mandatory
Redemption Redemption
Years Amounts
2009 $815, 000
2010 695, 000
2011 370, 000
2012 390, 000
2013 (maturity) 415, 000
If the City redeems Term Bonds under the optional redemption
provisions or purchases Term Bonds in the open market, the Term
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ORDINANCE NO. 4410
Bonds so redeemed or purchased (irrespective of their redemption or
purchase price) shall be credited at the par amount thereof against
such mandatory redemption year and amount as the City shall elect.
Portions of the principal amount of any Bond, in installments
of $5, 000 or any integral multiple thereof, may be redeemed. If
less than all of the principal amount of any Bond is redeemed, upon �
surrender of that Bond at either of the principal offices of the
Bond Registrar, there shall be issued to the registered owner, '
without charge therefor, a new Bond (or Bonds, at the option of the
registered owner) of the same maturity and interest rate in any of
the denominations authorized by this ordinance in the aggregate
total principal amount remaining unredeemed.
The City further reserves the right and option to purchase any
or all of the Bonds in the open market at any time at a price not
in excess of par plus accrued interest to the date of purchase.
All Bonds purchased or redeemed under this section shall be
cancelled.
SECTION VIII. Notice of Redemption. The City shall cause
notice of any intended redemption of Bonds to be given not less
than 30 nor more than 60 days prior to the date fixed for
redemption by first-class mail, postage prepaid, to the registered
owner of any Bond to be redeemed at the address appearing on the
Bond Register at the time the Bond Registrar prepares the notice,
and the requirements of this sentence shall be deemed to have been '
fulfilled when notice has been mailed as so provided, whether or
not it is actually received by the owner of any Bond. Interest on
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ORDINANCE NO. 4410
Bonds called for redemption shall cease to accrue on the date fixed
for redemption unless the Bond or Bonds called are not redeemed
when presented pursuant to the call. In addition, the redemption
notice shall be mailed within the same period, postage prepaid, to
Moody's Investors Service, Inc. , and Standard & Poor's Corporation
at their offices in New York, New York, or their successors, to
Seattle-Northwest Securities Corporation, at its principal office
in Seattle, Washington, or its successor, and to such other persons
and with such additional information as the City Administrative
Services Administrator shall determine, but these additional
mailings shall not be a condition precedent to the redemption of
Bonds.
SECTION IX. Failure to Redeem Bonds. If any Bond is not
redeemed when properly presented at its maturity or call date, the
City shall be obligated to _pay interest on that Bond at the same
rate provided in the Bond from and after its maturity or call date
until that Bond, both principal and interest, is paid in full or
until sufficient money for its payment in full is on deposit in the
Bond Fund and the Bond has been called for payment by giving notice
of that call to the registered owner of each of those unpaid Bonds.
SECTION X. Creation of Account and Subaccounts• Deposits into
Accounts. There is created the 1993 Water and Sewer Refunding and
Improvement Revenue Bond Redemption Account (heretofore defined as
the Bond Fund) , which shall be a separate bond redemption account
within the Water and Sewer Revenue Parity Bond Fund. The Bond Fund
is divided into two subaccounts, the Principal and Interest Account �
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ORDINANCE NO. 4410
and the Reserve Account. So long as Bonds are outstanding against
the Bond Fund, the Finance Director of the City shall:
(a) Set aside and pay into the Principal and
Interest Account out of the Revenue of the Waterworks
Utility a fixed amount, without regard to any fixed
proportion, namely, monthly, on or before the first day
of each month, amounts, together with the accrued
interest received on the delivery of the Bonds to the
initial purchaser thereof or other money on deposit
therein, as follows:
Beginning with the month of September I
1993, the requirement for the principal of and
interest on the Bonds due October 1, 1993;
Beginning with the month of October 1993
and continuing thereafter until the Bonds,
both principal and interest, are paid, 1/6 of
the next ensuing six months' requirements for
interest on the Bonds; and
Beginning with the month of October 1993, I
and continuing thereafter through March 1994,
1/6 of the requirement for principal on the I
Bonds due April 1, 1994, and beginning with
the month of April 1994 and continuing
thereafter until the Bonds, both principal and
interest, are paid, 1/12 of the amount of
principal of the Bonds payable on the next
ensuing principal payment date.
(b) Set aside and pay into the Reserve Account out
of the Revenue of the Waterworks Utility in substantially
equal monthly payments such amounts so that by no later
than August 1, 1998, there shall have been accumulated in
the Reserve Account for the Bonds an amount not less than
the Average Annual Debt Service for the Bonds.
The Reserve Account in the Bond Fund may be accumulated from
any other money which the City may have available for that purpose
in addition to or in lieu of using revenue therefor.
The City further agrees that when the required amounts have
been paid into the Reserve Account in the Bond Fund, the City will I
� maintain those amounts therein at all times, except for withdrawals
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ORDINANCE NO. 4410
therefrom as authorized herein, until there is sufficient money in
the Bond Fund, including the Reserve Account therein, to pay the
principal of and interest to maturity on all outstanding Bonds, at
which time no further payments need be made into the Bond Fund, and
the money in the Bond Fund, including the Reserve Account, may be
used to pay that principal and interest.
If there shall be a deficiency in the Principal and Interest
Account to meet maturing installments of either principal or
interest, as the case may be, on the Bonds, the deficiency shall be
made up from the Reserve Account by the withdrawal of cash
therefrom for that purpose. Any deficiency created in the Reserve
Account by reason of any withdrawal shall then be made up from the
Revenue of the Waterworks Utility first available after making
necessary provisions for the required payments into the Principal
and Interest Account.
All money in the Reserve Account not needed to meet the
payments of principal and interest when due may be kept on deposit
in the official bank depository of the City or in any national bank
or may be invested in any legal investment for City funds maturing
not later than the interest or principal and interest payment date
when the money will be needed. Interest on any of those
investments or on that bank account shall be deposited in and
become a part of the Reserve Account until the total required
reserve amount shall have been accumulated therein, after which
time the interest shall be deposited in the Principal and Interest
Account.
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ORDINANCE NO. 4410
Notwithstanding the provisions for the deposit or maintenance
of earnings in accounts of the Bond Fund, any earnings which are
subject to a federal tax or rebate requirement may be withdrawn
from the Bond Fund for deposit into a separate fund or account for
that purpose.
If the City shall fail to set aside and pay into the Bond Fund
the amounts set forth above, the owner of any of the outstanding
Bonds may bring an action against the City to compel that setting
aside and payment.
SECTION XI. Flow of Funds. Funds in the Waterworks Utility
Fund (other than in any bond redemption or federal rebate account)
shall be used in the following order of priority: II
(a) To pay Maintenance and Operation Expense;
(b) To pay the interest on the Outstanding Parity
Bonds, the Bonds and any Future Parity Bonds;
(c) To pay the principal of the outstanding Parity
Bonds, the Bonds and any Future Parity Bonds;
(d) To make all payments required to be made into
any sinking fund or bond redemption fund
hereafter created for the payment of Future
Parity Bonds which are Term Bonds;
(e) To make all payments required to be made into
the reserve accounts created to secure the
payment of the Outstanding Parity Bonds, the
Bonds and any Future Parity Bonds;
(f) To make all payments required to be made into
any revenue bond redemption fund or warrant
redemption fund and debt service account or
reserve account created to pay and secure the
payment of the principal of and interest on
any revenue bonds or revenue warrants of the
City having a lien upon the Revenue of the
Waterworks Utility junior and inferior to the
lien thereon for the payment of the principal
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ORDINANCE NO. 4410
of and interest on the Outstanding Parity
Bonds, the Bonds and any Future Parity Bonds;
and ,
(g) To retire by optional redemption or purchase
in the open market any outstanding revenue
bonds or revenue warrants of the City, to make
necessary additions, betterments, improvements
and repairs to or extensions and replacements
of the Waterworks Utility or for any other
lawful City purpose..
SECTION XII. Pledge of Revenue and Lien Position. The
Revenue of the Waterworks Utility is pledged to the payments set '
forth in Section X, and the Bonds shall constitute a lien and
charge on that revenue prior and superior to any other charges
whatsoever, excluding Maintenance and Operation Expense, except
that the lien and charge on such revenue for the Bonds shall be on
a parity with the lien and charge thereon for the Outstanding
Parity Bonds and any Future Parity Bonds.
SECTION XIII. Findinas Reaarding Sufficiency of Revenue. In
the judgment of the City Council, the Revenue of the Waterworks
Utility and benefits to be derived from the operation and
maintenance of the Waterworks Utility, at the rates to be charged
for water, sanitary sewage disposal service and storm and surface
water drainage service in the entire utility, will be more than
sufficient to meet all Maintenance and Operation Expense (and cost
of maintenance and operation of the Waterworks Utility as that term
is used in RCW 35.92.100) and the debt service requirements of the
Outstanding Parity Bonds and to permit the setting aside in the
Bond Fund, out of the revenue of the entire utility, of amounts
sufficient to pay the interest on the Bonds as that interest
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ORDINANCE NO. 4410
becomes payable and to pay and redeem all of the Bonds at maturity.
The City Council further declares that in creating the Bond Fund
and in fixing the amounts to be paid into the same, as aforesaid,
it has exercised due regard for the Maintenance and Operation
Expense (and costs of maintenance and operation as used in RCW
35.92. 100) and the debt service requirements of the presently i
outstanding Outstanding Parity Bonds, and the City has not bound
and obligated itself to set aside and pay into the Bond Fund a
greater amount or proportion of the revenue of that utility than in
the judgment of the City Council will be available over and above
Maintenance and Operation Expense (and such costs of maintenance
and operation) and debt service requirements of the Outstanding
Parity Bonds and that no portion of the Revenue of the Waterworks
Utility has been previously pledged for any unrefunded indebtedness
other than the payment of the presently outstanding Outstanding
Parity Bonds.
SECTION XIV. Covenants. The City covenants and agrees with
the owner of each Bond at any time outstanding as follows:
(a) It will establish, maintain and collect such
rates and charges for water, sanitary sewage disposal
service and storm and surface water drainage service so
long as any Outstanding Parity Bonds and Bonds are
outstanding as will make available for the payment of the
principal of and interest on such bonds an amount equal
to at least 1.3 times the average annual debt service
requirements, both � principal and interest, on the
Outstanding Parity Bonds and the Bonds after deducting
Maintenance and Operation Expense from the Revenue of the
Waterworks Utility. �
(b) It will at all times maintain and keep the
Waterworks Utility in good repair, working order and
condition and also will at all times operate such Utility
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ORDINANCE NO. 4410
and the business in connection therewith in an efficient
manner and at a reasonable cost.
(c) It will not sell, lease, mortgage or in any
manner encumber or dispose of all the property of the
Waterworks Utility unless provision is made for payment
into each of the respective bond redemption funds or
accounts for the Outstanding Parity Bonds and the Bond
Fund of sums sufficient to pay, respectively, the
principal of and interest on all Outstanding Parity Bonds
and the Bonds at any time outstanding, and that it will
not sell, lease, mortgage, or in any manner encumber or
dispose of any part of the property of the Waterworks
Utility that is used, useful and material to the ,
operation thereof, unless provision is made for
replacement thereof, or for payment into the respective
bond redemption funds or accounts for the Outstanding
Parity Bonds and the Bond Fund of the total amount of
revenue received which shall not be less than an amount
which shall bear the same ratio to the amount of the
Outstanding Parity Bonds and Bonds, respectively, as the
revenue available for debt service for 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 of bears to the
revenue available for debt service for such bonds from
the entire utility for the same period. Any such money
so paid into such funds shall be used to retire such
outstanding bonds at the earliest possible date. i
(d) It will while any of the Bonds remain I
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, and
it will furnish the original purchaser or purchasers of
the Bonds or any subsequent owner or owners thereof at
the written request of such owner or owners complete
operating and income statements of such utility in
reasonable detail issued in any calendar year not more
than ninety days after the close of such calendar year,
and it will grant any owner or owners of at least
twenty-five percent of the outstanding Bonds the right at
all reasonable times to inspect the entire Waterworks
Utility and all records, accounts and data of the City
relating thereto. Upon request of any owner of any of
the Bonds, it also will furnish to such owner a copy of
the most recently completed audit of the City's accounts
by the State Auditor of Washington.
(e) It will not furnish water, sanitary sewage
disposal service or storm and surface water drainage
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ORDINANCE NO. 4410
service to any customer whatsoever free of charge and
promptly will take legal action to enforce collection of
all delinquent accounts. '
(f) It will carry the types of insurance on the
Waterworks Utility properties in the amounts normally
carried by private water and sewer companies engaged in
the operation of water and sewerage systems, and the cost
of such insurance shall be considered a part of operating
and maintaining such utility. If, as, and when the
United States of America or some agency thereof shall ,
provide for war risk insurance, the City further agrees
to take out and maintain such insurance on all or such
portions of such utility on which such war risk insurance
may be written in an amount or amounts to cover '
adequately the value thereof.
(g) It will pay all Maintenance and Operation
Expense and the debt service requirements for the
Outstanding Parity Bonds and the outstanding Bonds, and
otherwise meet the obligations of the City as herein set '
f orth.
(h) It will take all actions necessary to prevent
interest on the Bonds from being included in gross income I
for federal income tax purposes, and it will neither take
any action nor make or permit any use of proceeds of the
Bonds or other funds of the City treated as proceeds of
the Bonds at any time during the term o� the Bonds which
will cause interest on the Bonds to be included in gross
income for federal income tax purposes. It will, to the
extent arbitrage rebate requirements of Section 148 of
the Code are applicable to the Bonds, take all action
necessary to comply (or to be treated as having complied)
with those requirements in connection with the Bonds,
including the calculation and payment of any penalties
that the City has elected to pay as an alternative to
calculating rebatable arbitrage, and the payment of any
, other penalties if required under Section 148 of the Code
to prevent interest on the Bonds from being included in
gross income for federal income tax purposes.
The City certifies that it has not been notified of any
listing or proposed listing by the Internal Revenue Service to the
effect that it is a bond issuer whose arbitrage certifications may
not be relied upon.
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ORDINANCE NO. 4410
SECTION XV. Refunding of the Refunded Bonds.
(a) AApointment of Refunding Trustee. Key Bank of
Washington, of Tacoma, Washington, is appointed Refunding Trustee.
(b) Accti.:isition and Substitution of Acquired Obligations.
A sufficient amount of the proceeds of the sale of the Bonds shall
be deposited immediately upon the receipt thereof with the
Refunding Trustee to discharge the obligation of the City to carry
out the Refunding Plan by providing for the payment of the amounts
required to be paid by the Refunding Plan. To the extent
practicable, such obligations shall be discharged fully by the
Refunding Trustee's simultaneous purchase of Acquired Obligations
bearing such interest rates and maturing as to principal and
interest in such amounts and at such times so as to provide,
together with a beginning cash balance, if necessary, for the
payment of the amounts required to be paid by the Refunding Plan.
The Acquired Obligations are listed and more particularly described
in Schedule A attached to the Refunding Trust Agreement, but are
subject to substitution as set forth below.
(c) Substitution of Acquired Obligations. Prior to the
purchase of any such Acquired Obligations, the City reserves the
right to substitute other direct, noncallable obligations of the
United States of America ("Government Obligations") for any of the
Acquired Obligations and to use any savings created thereby for any
lawful Cit ur ose '
y p p if, (a) in the opinion of Foster Pepper &
Shefelman, the City's bond counsel, the interest on the Bonds will
remain excluded from gross income for federal income tax purposes ��
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ORDINANCE NO. 4410 'I
under Sections 103, 148 and 149 (d) of the Code, and {b) such
substitution shall not impair the timely payment of the amounts
required to be paid by the Refunding Plan, so verified by an
independent nationally recognized firm of certified public
accountants.
After the purchase of the Acquired Obligations by the
Refunding Trustee, the City reserves the right to substitute I
therefor cash or Government Obligations subject to the conditions
that such money or securities held by the Refunding Trustee shall
be sufficient to carry out the Refunding Plan, that such
substitution will not cause the Bonds to be arbitrage bonds within
the meaning of Section 148 of the Code and regulations thereunder
in effect on the date of such substitution and applicable to
obligations issued on the issue date of the Bonds, and that the
City obtain, at its expense: (1) verification by an independent
nationally recognized firm of certified public accountants
acceptable to the Refunding Trustee confirming that the payments of
principal of and interest on the substitute Acquired Obligations,
if paid when due, and any other money held by the Refunding Trustee
will be sufficient to carry out the Refunding Plan; and (2) an
opinion from Foster Pepper & Shefelman, bond counsel to the City,
its successor, or other nationally recognized bond counsel to the
City, to the effect that the disposition and substitution or
purchase of such securities, under the statutes, rules and
regulations then in force and applicable to the Bonds, will not
cause the interest on the Bonds or the Refunded Bonds to be
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ORDINANCE NO. 4410
included in gross income for federal income tax purposes and that
such disposition and substitution or purchase is in compliance with
the statutes and regulations applicable to the Bonds. Any surplus
money resulting from the sale, transfer, other disposition or
redemption of the Acquired Obligations and the substitutions I
therefor shall be released from the trust estate and transferred to
the City to be used for any lawful Waterworks Utility purpose.
(d) Administration of Refunding Plan. The Refunding Trustee
is authorized and directed to purchase the Acquired Obligations (or
substitute obligations) and to make the payments required to be
made by the Refunding Plan from the Acquired Obligations (or
substitute obligations) and money deposited with the Refunding
Trustee pursuant to this ordinance. All Acquired Obligations (or
substitute obligations) and the money deposited with the Refunding
Trustee and any income therefrom shall be held irrevocably, ,
invested and applied in accordance with the provisions of
Ordinances Nos. 4157 and 4211, this ordinance, Chapter 39.53 RCW
and other applicable statutes of the State of Washington, and the
Refunding Trust Agreement. All necessary and proper fees,
compensation and expenses of the Refunding Trustee for the Bonds ,
and all other costs incidental to establishing the escrow to
accomplish the refunding of the Refunded Bonds and costs related to
the issuance and delivery of the Bonds, including bond printing,
- rating service fees, verification fees, bond counsel's fees and
other related expenses, shall be paid out of the proceeds of the
Bonds.
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ORDINANCE NO. 4410
(e) Authorization for Refunding Trust Agreement. To carry
out the Refunding Plan provided for by this ordinance, the Mayor or
City Administrative Services Administrator is authorized and
directed to execute and deliver to the Refunding Trustee a
Refunding Trust Agreement setting forth the duties, obligations and
responsibilities of the Refunding Trustee in connection with the
a
p yment, redemption and retirement of the outstandin Refunded �
g
Bonds as provided herein and stating that the provisions for
payment of the fees, compensation and expenses of the Refunding
Trustee set forth therein are satisfactory to it. Prior to
executing the Refunding Trust Agreement, the Mayor or City
Administrative Services Administrator is authorized to make such
changes therein which do not change the substance and purpose
thereof or which assure that the escrow provided therein and the
Bonds are in compliance with the requirements of federal law
governing the exclusion of interest on the Bonds from gross income
for federal income tax purposes.
SECTION XVI. Calls for Redemption of the Refunded Bonds. The
City calls for redemption on June 1, 1998, all of the 1988 Refunded
Bonds at par plus accrued interest.
The City calls for redemption on May 1, 1999, all of the
outstanding 1989 Refunded Bonds at par plus accrued interest.
The City calls for .redemption on April 1, 1998, all of the
Refunded 1989 Refunding Bonds at par plus accrued interest.
The City calls for redemption on October 1, 2000, all of the
1990 Refunded Bonds at par plus accrued interest.
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ORDINANCE NO. 4410
Such calls for redem tion shall be irrevocable after the
P
delivery of the Bonds to the initial purchaser thereof. The dates
on which the Refunded Bonds are called for redemption are the
earliest dates, respeetively, on which those Refunded Bonds may be
called for redemption.
The proper City officials are authorized and directed to cause
the fiscal agencies to give such notices as required, at the times
and in the manner required by Ordinances Nos. 4157, 4211, 4232 and
4294 in order to effect the redemption prior to their maturity of
the Refunded Bonds.
SECTION XVII. City Findings with Respect to Refundinq. The
City Council finds and determines that the issuance and sale of the
Bonds at this time. will effect a saving to the City and its
ratepayers and is in the best interest of the City and in the I
public interest. In making such finding and determination, the
City Council has given consideration to the fixed maturities of the
Bonds and the Refunded Bonds, the costs of issuance of the Bonds
and the known earned income from the investment of the proceeds of
the issuance and sale of the Bonds and other money of the City used
in the Refunding Plan pending payment and redemption of the
Refunded Bonds.
The City Council further finds and determines that the money
� to be deposited with the Refunding Trustee for the Refunded Bonds
in accordance with Section XV of this ordinance, together with
� known earned income from the . investments thereof, will be
I sufficient to carry out the Re�unding Plan and discharge and
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ORDINANCE NO. 4410
satisfy the obligations of the City under Ordinances Nos. 4157 and
4211 with respect to the Refunded Bonds and the pledges, charges,
trusts, covenants and agreements of the City therein made or
provided for as to the Refunded Bonds and that the Refunded Bonds
shall no longer be deemed to be outstanding under such ordinances
immediately upon the deposit of such money with the Refunding
Trustee. I
SECTION XVIII. Form and Execution of Bonds. The Bonds shall
be printed or lithographed on good bond paper in a form consistent
with the provisions of this ordinance and state law, shall be
signed by the Mayor and City Clerk, either or both of whose
_ signatures may be manual or in facsimile, and the seal of the City ,
or a facsimile reproduction thereof shall be impressed or printed
thereon.
Only Bonds bearing a Certificate of Authentication in the
following form, manually signed by the Bond Registrar, shall be I
valid or obligatory for any purpose or entitled to the benefits of
this ordinance:
CERTIFICATE OF AUTHENTICATION
This bond is one of the fully registered City of
Renton, Washington, Water and Sewer Refunding and
Improvement Revenue Bonds, 1993, described in the Bond
Ordinanc�,
WASITYNGTON STATE FISCAL AGENCY
Bond Registrar
� BY
Authorized Signer
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ORDINANCE NO. 4410 �I
The authorized signing of a Certificate of Authentication shall be
conclusive evidence that the Bonds so authenticated have been duly
executed, authenticated and delivered and are entitled to the
benefits of this ordinance.
If any officer whose facsimile signature appears on the Bonds
ceases to be an officer of the City authorized to sign bonds before
the Bonds bearing his or her facsimile signature are authenticated
or delivered by the Bond Registrar or issued by the City, those
Bonds nevertheless may be authenticated, delivered and issued and,
when authenticated, issued and delivered, shall be as binding on
the City as though that person had continued to be an officer of
the City authorized to sign bonds. Any Bond also may be signed on
behalf of the City by any person who, on the actual date of signing
of the Bond, is an officer of the City authorized to siqn bonds,
although he or she did not hold the required office on the date of
issuance of the Bonds.
SECTION XIX. Bond Registrar. The Bond Registrar shall keep,
or cause to be kept, at its principal corporate trust office,
sufficient books for the registration and transfer of the Bonds
which shall be open to inspection by the City at all times. The
Bond Registrar is authorized, on behalf of the City, to
authenticate and deliver Bonds transferred or exchanged in
accordance with the provisions of the Bonds and this ordinance, to
serve as the City's paying agent for the Bonds and to carry out all
of the Bond Registrar's owers and duties under this ord'n
P i ance and
0089189.01
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ORDINANCE NO. 4410
City Ordinance No. 3755 establishinq a system of registration for
the City's bonds and obliqations.
The Bond Registrar shall be responsible for its
representations contained in the Bond Registrar's Certificate of
Authentication on the Bonds. The Bond Registrar may become the
owner of Bonds with the same rights it would have if it were not
the Bond Registrar and, to the extent permitted by law, may act as
depository for and permit any of its officers or directors to act �
as members of, or in any other capacity with respect to, any
committee formed to protect the rights of Bond owners.
SECTION XX. Bonds Negotiable. The Bonds sha11 be negotiable
instruments to the extent provided by RCW 62A.8-102 and 62A.8-105.
SECTION XXI. Refunding or Defeasance of Bonds. The City may
issue advance refunding bonds pursuant to the laws of the State of
Washington or use money available from any other lawful source to
pay when due the principal of and interest on the Bonds, or any
portion thereof included in a refunding or defeasance plan, and to
redeem and retire, release, refund or defease all such then-
outstanding Bonds (hereinafter collectively called the "defeased
Bonds") and to pay the costs of such refunding or defeasance. In
the event that money and/or direct obligations of the United States
of America sufficient in amount, together with known earned income
from the investment thereof, to redeem and retire, release, refund
or defease the defeased Bonds in accordance with their terms are
set aside irrevocably in a special fund for and pledged to such �
redemption, retirement or defeasance (hereinafter called the "trust
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ORDINANCE NO. 4410
account") , all right and interest of the owners of the defeased
Bonds in the covenants of this ordinance, in the Revenue of the
Waterworks Utility and in funds and accounts obligated to the
payment of such defeased Bonds, other than the right to receive the
funds so set aside and pledged, shall cease and become void. Such
owners shall have the right to receive payment of the principal of
and interest on the defeased Bonds from the trust account and, in
t
he event the funds in the trust account are not available for such
payment, shall have the residual right to receive payment of the
principal of and interest on the defeased Bonds from the Revenue of
the Waterworks Utility without any priority of lien or charge
against such revenue or covenants with respect thereto except to be
paid therefrom. I
After the establishing and full funding of the trust account, I
the City may then apply any money in any other fund or account �
established for the .payment or redemption of the defeased Bonds to ,
any lawful purposes as it shall determine, subject only to the I
rights of the owners of any other bonds then outstanding. ''
In the event the refunding plan provides that the defeased ,
Bonds 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 the defeased Bonds and
if such refunding plan also provides that certain cash and/or
direct obligations of the United States of America or other legal
investments are pledged irrevocably for the prior redemption of the
defeased Bonds included in that refunding plan, then only the debt
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ORDINANCE NO. 4410
service on the Bonds which are not defeased Bonds and the refunding
bonds, the payment of which is not so secured by the refunding
plan, shall be included in the computation of coverage for issuance
of Future Parity Bonds and the annual computation of coverage for
determining compliance with the rate covenants.
SECTION XXII. Provision for Future Parity Bonds. The City
reserves the right to issue Future Parity Bonds which will I
constitute a lien and charge on the Revenue of the Waterworks
Utility on a parity with the Outstanding Parity Bonds and the Bonds
if the conditions set forth in Section 13 of Ordinance No. 3188, as
modified and strengthened by Section 12 of Ordinance No. 3720, are
met and complied with at the time of the issuance of those Future I
Parity Bonds, which sections are by this reference incorporated II
herein and made a part hereof and shall continue to be applicable II
even though the 1953 Bonds have been paid and retired.
SECTION XXIII. Deposit of Bond Proceeds. There has been '
created in the office of the City Administrative Services
Administrator a special fund of the City known and designated as
the Water and Sewer Construction Fund, 1983 (the "Construction �I
Fund") . The principal proceeds received from the issuance and sale I�!
of the Bonds remaining after the deposits required by Section XV,
shall be deposited in the Construction Fund and shall be used to
pay the costs of carrying out the system or plan of additions to
and betterments and extensions of the Waterworks Utility specified,
adopted and ordered to be carried out by this ordinance. Pending
the expenditure of the principal proceeds out of the Construction
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ORDINANCE NO. 4410
Fund, the money in that fund may be invested in any legal
investment and the investment income may be retained in that fund
and used for the purposes of the fund. The accrued interest on the
Bonds, if any, received at the time the Bonds are delivered to the
initial purchaser shall be deposited in the Principal and Interest
Account of the Bond Fund. ,
SECTION XXIV. Approval of Bond Purchase Contract. Seattle-
Northwest Securities Corporation of Seattle, Washington, has
presented a purchase contract dated July 19, 1993 (the "Bond
Purchase Contract") , to the City offering to purchase the Bonds
under the terms and conditions provided in the Bond Purchase
Contract, which written Bond Purchase Contract is on file with the
City Clerk and is incorporated herein by this reference. The City I
Council finds that entering into the Bond Purchase Contract is in
the City's best interest and therefore accepts the offer contained
therein and authorizes its execution by City officials.
The Bonds will be printed at City expense and will be i
delivered to the purchaser in accordance with the Bond Purchase
Contract, with the approving legal opinion of Foster Pepper &
Shefelman, municipal bond counsel of Seattle, Washington, regarding
the Bonds printed on each Bond. Bond counsel shall not be required
to review and shall express no opinion concerning the completeness
or accuracy of any official statement, offering circular or other
sales material issued or used in connection with the Bonds, and
bond counsel's opinion shall so state.
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ORDINANCE NO. 4410
The proper City officials are authorized and directed to do
everything necessary for the prompt execution and delivery of the
Bonds to the purchaser, including reviewing and executing the f inal
official statement on behalf of the City, and for the proper
application and use of the proceeds thereof.
SECTION XXV. Preliminary Official Statement Deemed
"Final". The City Council has been provided with copies of a
preliminary official statement dated July 8, 1993 (the "Preliminary
Official Statement") , prepared in connection with the sale of the
Bonds. For the sole purpose of the purchaser's compliance with
Securities and Exchange Commission Rule 15c2-12 (b) (1) , the City
"deems final" that Preliminary Official Statement as of its date, '
except for the omission , of information as to offering prices,
interest rates, selling compensation, aggregate principal amount,
principal amount per maturity, maturity dates, options of
redemption, delivery dates, ratings and other terms of the Bonds
dependent on such matters.
SECTION XXVI. Temporary Bond. Pending the printing,
execution and delivery to the purchaser of definitive Bonds, the
City may cause to be executed and delivered to the purchaser a
single temporary Bond in the total principal amount of the Bonds.
The temporary Bond shall bear the same date of issuance, interest
rates, principal payment dates and terms and covenants as the
definitive Bonds, shall be issued as a fully registered Bond in the
name of the purchaser, and otherwise shall be in a form acceptable
to the purchaser. The temporary Bond shall be exchanged for
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ORDINANCE NO. 4410
definitive Bonds as soon as they are printed, authenticated and
available for delivery.
SECTION XXVII. Effective Date of Ordinance. This ordinance
shall be effective upon its passage, approval and five days after
publication ,
PASSED by the City Council this 19th day of July, 1993 .
. I
Marilyn P ersen, City Clerk
APPROVED BY THE MAYOR thi h day of July, 1993 .
`
�
Ea Clymer, ayo'
App ed as to Form: �
�
Date of Pu lication: July 23, 1993 �,
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ORDINANCE NO. 4410
EXHIBIT A �'
Maplewood Wells Construction
Panther Creek P-9 Storm Extension
Sewer Line and Interceptor Replacements
Water Line Replacements
Water Quality and Resource Planning
Various Proj_ects listed on pages 48 and 49, City of Renton 1993
Budget (under Table 10, Capital Improvement Plan)
0089189.01 I
I, MARILYN J. PETERSEN, City Clerk of the City of Renton,
Washington, certify that the attached copy of Ordinance No. 4410 is
a true and correct copy of the original ordinance _passed on the
19th day of July, 1993, as such ordinance appears on the Minute
Book of the City.
1 ,
DATED this 9 day of July, 1993.
-
MARILYN . ERSEN, City Clerk
0089189.01 I�
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