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HomeMy WebLinkAboutORD 1242ORDINANCE NO. 1242 AN ORDINANCE of the City of Renton, Washington, adopting a plan for the making of certain additions to the present water distribution system of the City by the purchase of all the property and assets formerly owned by the Northwest Water Co., declaring the estimated cost thereof, authorizing the issuance and sale of $100,000 of water revenue bonds to pay part of the cost therefor, creating a special fund for the payment of said bonds, and providing the form, date, 2aturities and other details of said bonds. WHEREAS, one Marie D. Del Guzzo is now the sole owner of all the property, assets and the water distribution system of the Northwest Water Co., a dissolved corporation, which operated such system in dis- tricts adjacent to the City of Renton, and which system is connected to the Cityls water distribution system at a place on the Maple Valley Road approximately one thousand feet southeast of its intersection with State Highway No* 2; and 1hrHEREAS, the said Marie D. Del Guzzo is desirous of selling to the City of Renton such properties, except the accounts receivable due said company prior to March 1, 1946; and 11HEREAS, in the opinion of the council of said City it. is to the best interest of the City to—acquire by purchase all the property, assets and the water distribution system formerly.operated by said com- pany in order to obtain additional supplies of water and to furnish the same to the inhabitants of the Ci.ty and surrounding districts, NOW, THEREFORE.. the City Council of the City of Renton do ordain as follows: Sec. 1. The following plan for additions and betterments to the existing water system of the City of Renton is hereby adopted! That the City of Renton shall acquire by eminent domain proceeding or purchase from Marie D. Del Guzzo, sole owner of all the property and assets of the Northwest Water Co., a dissolved corporation, all such property and assets, including the water distribution system of said company, excepting the accounts receivable due said company prior to March 1, 1946, and including, but not likited to the fol - i lowing: y i e (a) Real Property (1) Pumping plant site, located on property more particularly.described as follows.- portion ollows: portion of Government Lot 7, Section 17, Township 23 North, Range 5, E.W.M., King , County, 'Washington. (2) Well site located on property more particularly.described as follows: _fAA portion of Government Lot 7, Section 171 Township 23 North, Range 5 E.W.M., King County, Washington (3) Tank site, located on the following described property in King County, Washington, more particularly described as follows: Commencing at a point on.the West section line of Section 43, Township 23 North, Range 5 E.W.M. 1044 ft. South of the west 4 corner of said section 4; thence East 215 ft.; thence north 44 ft., thence east 50 ft., thence south 100 ft.; thence west 50 ft., thence north 44 ft., thence west 215 ft., thence north 12 ft. to the point of beginning (b) All easements, franchises, permits an d.water rights granted by the State of Washington, King County, or any corporation, assdciation or individual to the Northwest Water Co., a corporation, or Marie D. Del Guzzo, its successor in interest. (c) All the right, title and interest in and to those certain contracts entered into between the United States of America or the Federal Public Housing Commission, a governmental agency, and the Northwest Water Co., or said Marie D. Del Guzzo, by the terms of which the Government granted certain rights to the use of water from wells located on the Federal Public Housing Authority property northeast of the City of Renton, known as Renton -Highland Housing Project. (d) All mains, laterals and pipes.of the Northwest Water Co., used as main supply lines and for the distribution of 2. i water throughout the entire system of the company, including particularly the water distribution mains and laterals located in the Windsor Hills area, Kenneydale and adjoining areas, and the Honeydew area. (e) All wells, pumps, tanks, reservoirs,.chlorinating plants or equipment, meters, supplies, tools and equipment, and any and all other real or personal property owned and used by said company in connection with the operation and maintenance of its system and in the distribution of water. That said water distribution system formerly operated by Northwest Water Co. shall be added to and become a part of the present water distribution system of the City of Renton. Sea. 2. That the estimated cost of the acquisition of all of the above described properties.is hereby fixed, as near as may be, at the sum of $117,250, $100,000 of which is to be paid for by the issuance of water revenue bonds of the City of Renton of a like principal amount. Said city does hereby propose and adopt as an integral part of the plan for the acquisition of the above described additions and betterments to its water distribution system that it shall issue and sell its water revenue bonds in the total principal sum of $100,000 as hereinafter provided. Sec. 3. Said bonds shall be in denominations of $1,000 each, shall be numbered from 1 to 100 inclusive, shall be dated April 1, 11 1946, shall bear interest at the rate of 1 IOpper annum, payable semiannually on the first days of April and October of each year, shall be payable solely from the fund known as "Renton 1946 Water Revenue BondORedemptionFund" created by this Ordinance .out of the gross revenues of the municipal water system, and shall mature serially in order of their number as follows: April 1, 1947 11,000 ,April 1, 1951 130000 April 1, 1948 11,000 April 1, 1952 13,00d— April 1, 1949 12,000 April 1, 1953 14,000 April 1, 1950 12,,000 April 1, 1954 14;000 3. Both principal and interest of said bonds shall be payable in lawful money of the United States at the office of the Treasurer of .the City of Renton, Washington. See, 4. Said bonds shall be in substantially the following form, except as to date of payment: No. UNITED STATES OF AMERICA STATE OF WASHINGTON CITY OF RENTON MUNICIPAL WATER REVENUE BOND, 1946 KNOW ALL MEN BY THESE PRESENTS: That the City of Renton, a municipal corporation of the State of Washington, acknowledges itself to owe, and for value received hereby promises to pay to bearer on the is t day of April, 19 , the principal sum of ONE THOUSAND DOLLARS together -with interest thereon at the rate of l-, per annum, payable semiannually on the first days of April and October of each year as evidenced by and upon presentation and sur- render of the annexed interest coupons as they severally be- come due. Both principal and interest are payable in lawful money of the United States of America at the office of the City Treasurer of the said City of Renton, Washington, solely out of the special fund known as *Renton 1946 Water Revenue Bond Redemption Fund"' created by Ordinance No. 1242 of said City. This bond is one of a total issue of water revenue bonds aggregating the principal sum of $100,000 issued by the said City of Renton for the purpose of providing funds for the acquisition of certain additions and betterments to the existing water system of said city, and is payable solely out of the gross revenues'of said water system. The -City of Renton hereby covenants and agrees with the holder of this bond that it will keep and perform all the covenants of this bond and of said ordinance to be by it kept and performed, and said City does hereby pledge and bind itself to set aside from the gross revenues of said municipal water revenue system and all additions thereto, and pay into said bond redemption fund at least thirty days prior to the respective dates on which the interest or principal and interest of this issue of bonds shall become due and payable, amounts sufficient to make such payments as they respectively become due.. Said amounts so pledged are hereby declared to be a prior lien and charge upon all the gross revenues of said municipal water system including all addi- tions and betterments thereto superior to all other charges of any kind or nature except charges for the unpaid portion of an issue of water revenue bonds previously issued, and, 4. except the necessary cost of maintenance and operation of said water s ystem. Said City of Renton has bound itself by said ordinance to establish and maintain rates for water that will provide sufficient revenues to permit the payment into said fund of all the sums which the city has pledged to be set aside for the payment of the principal and interest of the bonds of this issue and in addition thereto all the payments of principal and interest of the said prior issue and the entire cost of maintaining and.operating said water system. It is hereby certified and declared that said bonds are issued pursuant to and in strict compliance with the laws and constitution of the State of `Washington, and said ordinance of the City of Renton and that all acts, conditions and things required to be done precedent to and in the issuance of this bond have happened, been done and performed as required by law. IN WITNESS WHEREOF the City of Renton has caused this bond to be signed by its Mayor and attested by its City Clerk, and its corporate seal to be hereto affixed, and the interest coupons hereto attached to be signed with the facsimile sig- natures of said officials this 1st day of April , 1946. CITY OF RENTON, WASHINGTON By Attest: Mayor City Clerk The interest coupons attached to said bonds shall be in substantially the f ollowing form: No. 6.25 On the first day. of , 19 , the City of Renton, Washington will pay -to bearer at the office of the City Treasurer of the City of Renton, "Washington, six and 25/100 dollars ($6.25) in lawful money of the United States from the special -fund of said City known as "Renton 1946 Water Revenue Bond Redemption Fund" said sum being the semiannual interest due that day on its water revenue bond dated April 1, 1946, and numbered . CITY OF, RENTON, WASHINGTON By Attests Mayor Ci ty Clerk 5. Sec. 5. That there be and is hereby created a special fund to be known as "Renton 1946 Water Revenue Bond Redemption Fund" which fund is to be drawn upon for the sole purpose of paying the interest and principal of the said water revenue bonds. From and after the date of the issue of said bonds, and as ` long as any of the same are outstanding and unpaid, the City Treasurer shall set aside and pay into said fund at least thirty days prior to the respective dates on which the interest or prin- cipal and interest of said bonds shall be due and payable, certain amounts out of the gross revenues of the water system, including all additions and extensions thereof, equal to the respective Amounts of interest or principal and interest payments as they respectively become due. Said amounts so pledged are hereby declared to be a prior lien and charge upon the gross revenues of said municipal water'system and all additions thereto, superior 'to all other charges of any kind or nature, except charges f or,the unpaid portion of an issue of water revenue bonds of the City of Renton previously issued, and except the necessary cost of maintenance and operation of said water system. The corporate authorities of the City of Renton hereby declare that in fixing. the amount to be paid into said fund they have exercised due regard to the cost of operation and maintenance of said water system; that no portion of the revenues thereof have been previously pledged for any indebtedness except as hereinbefore stated, and that in the judgment of the corporate authorities of said city the gross revenues to be derived from the operation of said water system will be sufficient to meet all expenses of opera- tion and maintenance of the same and all charges for the payment of the principal and interest of the said prior bonds and those herein provided for, and will permit to be set aside into said 6. L special fund an amount sufficient to pay the principal and interest thereof as the same shall become due. That the City of Renton covenants and agrees with the holder of each and every one of the bonds hereinabove provided for, to maintain in good condition and operate said water system in a proper and efficient manner, and to establish and maintain such rates for water as will provide sufficient revenue to produce the gross revenues required to meet all the obligations of said town as herein set forth. Sec. 6. The offer of Harold H. Huston & Co. to purchase these bonds at par and accrued interest and at the interest rate of 1 per annum, and under the terms of said bonds as herein set forth, made and accepted on March 5, 1946, is hereby ratified and con- firmed. on- firmed. Sec. 7. The moneys derived from the sale of said bonds, together with such other funds of the City of Renton as may be necessary, shall be used to pay the cost of acquisition of the properties hereinbefore described, and the City officials of said City are hereby authorized and directed to do everything neces- sary for the execution and delivery of said bonds and the acquisition of said properties. Sec. 8. This ordinance shall take effect five days after its passage, approval and publication as required by law. - PASSED by the 6ity Council of the City of Renton, Washington, qk and approved by the Mayor this q_ day of March, 1946. CITY �O,F{ CRENTOOON, WASHINGTON, By ATTEST: Mayor A"I AA City l erk Published: March 21, 1946. 7.