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HomeMy WebLinkAboutOrd 0387 - Water and Sewer Revenue Bonds for Waterworks UtilityCITY OF TUKWILA, WASHINGTON ORDINANCE NO. 387 EXPIRED AN ORDINANCE of the City of Tukwila, Washington, providing for the issuance of $190,000.00 par value of "Water and Sewer Revenue Bonds, 1963," of the City for the purpose of providing a portion of the funds with which to carry out the system or plan for making additions to and betterments and extensions of the waterworks utility of the City, including the system of sewerage as a part thereof, as adopted by Ordinance No. 381; fixing the date, form, maturities, interest rate, terms and covenants of tnose bonds; and providing for the sale and delivery of those bonds to McLean Company, Inc., Tacoma, Washington. WHEREAS, the City of Tukwila, Washington (then the Town of Tukwila), by Ordinance No. 320, passed by the Town Council and approved by the Mayor on the 1st day of May, 1961, and subsequently amended, specified and adopted a system or plan for a system of sewerage for the Town and provided that the system of sewerage become a part of the waterworks utility of the Town, and authorized the issuance and sale of "Water and Sewer Revenue Bonds, 1961, in the principal sum of not to exceed $170,000.00 to pay a portion of the cost thereof, such waterworks utility, as hereinafter referred to, being deemed to include the systems of water supply and dis- tribution and sanitary sewage disposal, as combined by Ordinance No. 320 pursuant to RCW 35.67.320, and any additions thereto and extensions, renewals and betterments thereof hereafter made or constructed; and WHEREAS, $170,000.00 of the "Water and Sewer Revenue Bo, 19b1" (hereinafter referred to as the "1961 Bonds"), were issued pursuant to Ordinance No. 334 and are payable from the gross revenues of the waterworks utility, including as a part of such revenues a water and sanitary sewage disposal service surcharge payable under a contract between the City and Puget Western, Inc., a Washington corporation; and WHEREAS, the City, in Section 7 of Ordinance No. 334 authorizing the issuance of the 1961 Bonds, reserved the right to issue additional water and sewer revenue bonds on a parity of lien with the 1961 Bonds in the following language and under the following conditions: "The Town reserves the right to issue additional or refunding water and sewer revenue bonds which shall constitute a charge or lien upon the gross revenues of the waterworks utility of the Town, including all additions thereto and betterments, replacements and extensions thereof at any time made, on a parity of lien with the Bonds, if the following conditions shall be met and complied with at the time of issuance of such additional or refunding water and sewer revenue bonds: (a) All payments then required by this Ordinance or any other ordinance hereafter enacted pertaining to the Bonds and to any such additional or refunding water and sewer revenue bonds hereafter issued shall have been made into the Bond Fund and maintained intact therein; and "(b) The revenues of the waterworks utility of the Town, including any water and sanitary sewage disposal service sur- charge payable under any Agreement between the Town and any third party, for any twelve months out of the immediately pre- ceding fifteen months' period adjusted to reflect a year's net income from each customer of the waterworks utility of the Town connected to such utility at the end of that twelve -month period who has not been a customer for the entire twelve- month period, plus the additional revenue, from whatever source and of whatever nature, anticipated to be received from the proposed -2- improvement in connection with which such additional water and sewer revenue bonds are to be issued, shall be deemed sufficient, after the payment of normal operation and maintenance costs and State and Federal taxes, to equal at least 1.35 times the average annual principal and interest requirements of all then outstand- ing water and sewer revenue bonds, including the Bonds and of the additional or refunding bonds proposed to be so issued, but except the principal requirements of any term bond maturity year or years, as defined in Section 8 of this Ordinance, of any bonds payable out of the Bond Fund. Such determination of the sufficiency of the revenues shall be made and certified to by an independent professional registered engineer experienced in municipal utilities and licensed to practice in the State of Washington; except, that if such additional bonds proposed to be so issued are for the sole purpose of refunding water and sewer revenue bonds, such certification of coverage shall not be required if the amount required for payment of the principal and interest in each year for the refunding bonds is not increased over the amount required for the bonds to be refunded thereby and the maturities of said refunding bonds are not extended beyond the maturities of the bonds to be refunded thereby; and "(c) The ordinance authorizing the issuance of such additional bonds shall provide that an amount equal to the average annual debt service of the additional bonds proposed to be issued shall be accumulated as a reserve in the Bond Fund, said amounts to be accumulated by monthly deposits com- mencing not later than one month after the date of issuance of the additional bonds and to be accumulated within five years after the date of issuance of such bonds, and said reserve to be maintained in such amounts so long as any of those additional bonds are outstanding to the last maturity thereof. In the case of parity refunding bonds the ordinance authorizing the issuance of such refunding bonds shal], provide that the money in the "Reserve Account" for the bonds to be refunded shall be transferred to the "Reserve Account" in the Bond Fund, or that the moneys in the "Reserve Account" for the bonds to be refunded shall be used to redeem such bonds, in which event an amount equal to the average annual debt service for the refunding bonds proposed to be issued shall be accumulated as a reserve in the same manner and within the same times as set forth herein for addi- tional revenue bonds. and "In lieu of the accumulation of a reserve in the manner provided in this subsection 7 (c), the ordinance author- izing such additional bonds may provide for a cash deposit by a third party with an escrow agent acceptable to the Town in an amount equal to the average annual debt service of the additional bonds proposed to be issued, which deposit shall be made on or before the delivery of the additional bonds and shall be conditioned on the pay- ment into the "Reserve Account" of the Bond Fund of amounts necessary to make up any deficiency in the Principal and Interest Account in the Bond Fund to meet maturing installments of either principal or interest on such additional bonds. That third party shall also be bound by agree- ment with the Town to make such additional cash deposits in escrow as are necessary to maintain that deposit at the required level in the event that the original or subsequent deposits are called upon to make up the deficiencies in the Principal and Interest Account of the Bond Fund. Such cash deposits shall remain in escrow at the required level until the moneys in the Reserve Account paid in for those additional bonds equal the average annual debt service of those additional bonds. WHEREAS, the City has adopted Ordinance No. 381 specifying and adopting a system and plan of additions to and betterments and extensions of the waterworks utility, declaring the estimated cost thereof as nearly as may be, providing for the issuance and sale of not to exceed $407,000.00 par value of water and sewer revenue bonds, in one or more series, to provide a part of the funds required to pay the cost thereof, declaring the intention of the City Council to form a local improvement district, the property therein to be assessed to the extent of not to exceed $412,000.00 of the cost of the improvement, and creating a special fund to provide for the payment of the revenue bonds, if necessary; and WHEREAS, the City has contracted with Val Vue Sewer District, a municipal corporation of the State of Washington, whereby Val Vue Sewer District will oontruct a portion of the system or plan ordered to be constructed by Ordinance No. 381, so that the estimated cost of the remainder of such system and plan to be financed by the City from the proceeds of water and sewer revenue bonds is $190,000.00; and WHEREAS, the City desires to issue $190,000.00 of the water and sewer revenue bonds authorized by Ordinance No. 381; and WHEREAS, the City Council hereby finds and declares that all payments required to be made into the "Water and Sewer Revenue Bond Fund, 1961," both the "Principal and Interest Account" and the "Reserve Account," have been made and have been maintained intact therein; that Howard Harstad Associates, professional engineers experienced in municipal utilities and licensed to practice in the State of Washington, has certified that the proposed water and sewer revenue bonds are to be issued to finance sewer construction as a part of the waterworks utility of the City and that the revenues of the waterworks utility of the City, including any water and sanitary sewage disposal service surcharge payable under any Agreement between the City and any third party, for any twelve months out of the immediately preceding fifteen months' period adjusted to reflect a year's net income from each customer of the waterworks utility of the City connected to such utility at the end of that twelve -month period who has not been a customer for the entire twelve -month period, plus the additional revenue, from whatever source and of whatever nature, anticipated to be received from the proposed improvement in connection with which such additional water and sewer revenue bonds are to be issued, in the engineer's opinion, shall be sufficient, after the payment of normal operation and mainten- ance costs and State and Federal taxes, to equal at least 1.35 times the average annual principal and interest requirements of all 1961 Bonds and the additional bonds proposed to be issued; and that provision is hereinafter made for the accumulation in the "Reserve Account" in the ''Water and Sewer Revenue Bond Fund, 1961," of the additional required reserve amount; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, DO ORDAIN, as follows: Section 1. For the purpose of obtaining a portion of the funds with which to carry out the system or plan for making additions to and betterments and extensions of the waterworks utility of the City, as adopted by Ordinance No. 381, there shall be issued and sold y $190,000.00 par value of "Water and Sewer Revenue Bonds, 1963," (hereinafter called the "Bonds The Bonds shall be dated October 1, 1963, shall be in the denominations of $1,000.00 each, shall be numbered from 1 to 190, inclusive, shall bear interest at the rate of 4.375% per annum payable semiannually on March 1 and September 1 of each year, except interest payable on March 1, 1964, shall be for five months, interest to maturity to be evidenced by coupons to be attached to the Bonds with full obligation on the part of the City to pay interest at the same rate from and after the bond maturity dates until the Bonds with interest are paid in full. Both the principal of and interest on the Bonds will be payable solely out of the "Water and Sewer Revenue Bond Fund, 1961," of the City (herein- after called the "Bond Fund"), created and established by Ordinance No. 320, as amended. Both principal of and interest on the Bonds shall be payable in lawful money of the United States of America at the office of the Treasurer of the City. The Bonds shall mature serially in accordance with the following schedule: Bond Numbers (Inclusive) Amounts 1 to 2 2,000 3 to 4 2,000 5 to 6 t 2,000 7 to 8 2,000 9 to 10 2,000 11 to 12 2,000 13 to 14 2,000 15 to 17 3,000 18 to 20 3,000 21 to 23 3,000 24 to 26 3,000 27 to 29 3,000 30 to 32 3,000 33 to 36 4,000 37 to 4o 4,000 41 to 44 4,000 45 to 48 4,000 49 to 53 5,000 54 to 58 5,000 59 to 63 5,000 64 to 68 5, 000 69 to 73 5,000 74 to 79 6,000 80 to 96 •17, 000 97 to 114 •18, 000 115 to 132 •18, 000 134 to 151 19,00o 152 to 170 19,00o 171 to 190 20,000 Section 2. Bonds numbered 1 to 10, inclusive, matur- ing September 1, 1969, through September 1, 1973, shall be issued without the right or option of the City to redeem the same prior to their stated maturity dates. The City of Tukwila reserves the right to redeem any or all of the outstanding Bonds numbered 11 to 190, inclusive, maturing September 1, 1974, through September 1, 1997, on September 1, 1973, or on any semiannual interest payment date thereafter, in inverse numerical order, highest numbers first, at the following percentages of par if redeemed on the follow- ing dates, plus accrued interest to date of redemption in each case, to -wit: Maturities September 1, 1969 September 1, 1970 September 1, 1971 September 1, 1972 September 1, 1973 September 1, 1974 September 1, 1975 September 1, 1976 September 1, 1977 September 1, 1978 September 1, 1979 September 1, 1980 September 1, 1981 September 1, 1982 September 1, 1983 September 1, 1984 September 1, 1985 September 1, 1986 September 1, 1987 September 1, 1988 September 1, 1989 September 1, 1990 September 1, 1991 September 1, 1992 September 1, 1993 September 1, 1994 September 1, 1995 September 1, 1996 September 1, 1997 On September 1, 1973, or March 1, 1974, at 103 On September 1, 1974, or March 1, 1975, at 102 3/4 On September 1, 1975, or March 1, 1976, at 102 1 /2% On September 1, 1976, or March 1, 1977, at 102 1/4% On September 1, 1977, or March 1, 1978, at 102 On September 1, 1978, or March 1, 1979, at 101 3/4% On September 1, 1979, or March 1, 1980, at 101 1/2% On September 1, 1980, or March 1, 1981, at 101 1/4% On September 1, 1981, or March 1, 1982, at 101 On September 1, 1982, or March 1, 1983, at 100 3/4 On September 1, 1983, or March 1, 1984, at 100 1/2% On September 1, 1984, or March 1, 1985, at 100 1/4% On September 1, 1985, and thereafter at par. Notice of any call for redemption of any of the Bonds prior to their stated maturity dategshall be published at least once in the official newspaper of the City, or, if none, in the Daily Journal of Commerce, published in Seattle, Washington, not less than thirty nor more than forty -five days prior to the call date. Notice of such redemption shall also be mailed to McLean Company, Inc., at its principal office in Tacoma, Washington, or its successor, not less than thirty nor more than forty -five days prior to the date fixed for such Bonds to be redeemed. Interest on any Bonds so called for redemp- tion shall cease on the date fixed for such redemption upon payment of the redemption price into the Bond Fund. Section 3. So long as any Bonds are outstanding against the Bond Fund, the Treasurer of the City shall set aside and pay into the Bond Fund out of the gross revenues of the waterworks utility of the City, a fixed amount without regard to any fixed proportion, on or before the 20th day of each month, namely: (a) Into the Principal and Interest Account, beginning with the month of September, 1964, 1 /12th of the next ensuing twelve months' requirements for both principal of and interest on the 1961 Bonds then outstanding and the Bonds outstanding; and (b) Into the Reserve Account, begin- ning with the month of October, 1963, and each month thereafter, 1 /60th of an amount equal to the average annual debt service requirement (both principal and interest) for the Bonds, to the end that a total reserve equal to the average annual debt service requirement for the Bonds shall be accumulated no later than five years thereafter, together with other moneys in the reserve account deposited for the reserve requirement of the 1961 Bonds. The Reserve Account may be accumulated from any other moneys which the City may have available for such purpose in addition to using such revenues therefor. The Reserve Account shall be maintained in such total required reserve amount, except for withdrawals therefrom as authorized herein, at all times so long as any of the 1961 Bonds and the Bonds are outstanding. When the total amount in the Bond Fund shall equal the total amount of principal and interest for all out- standing 1961 Bonds and outstanding Bonds to the last maturity thereof, no further payment need be made into the Bond Fund. In the event that there should be a deficiency in the Principal and Interest Account in the Bond Fund to meet maturing installments of either principal or interest, as the case may be, 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 moneys from the revenues of the waterworks utility of the City first available after making necessary provision for the required payments into the Principal and Interest Account. The moneys in the Reserve Account shall otherwise be held intact and may be applied against the last outstanding bonds payable out of the Bond Fund. All moneys in the Reserve Account above provided for may be kept on deposit in the official bank depository of -9- -10- the City, or may be invested in United States Government obligations redeemable at a fixed price and maturing not later than August 1, 1997. Interest earned on any such investments or on such bank deposit 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 such interest shall be deposited in the Principal and Interest Account. The gross revenues from the waterworks utility of the City are hereby pledged to the payment of the Bonds, and the Bonds shall constitute a lien and charge upon such revenues prior and superior to any other charges whatsoever, excluding charges for maintenance and operation, except that the lien and charge upon those revenues for the Bonds shall be on a parity with the charge or lien upon such gross revenues for the 1961 Bonds and any additional water and sewer revenue bonds which may be hereafter issued on a parity with the 1961 Bonds and the Bonds in accordance with the provisions of Section 7 of Ordinance No. 334. Section 4. There is created and established in the office of the City Treasurer a special fund to be known as the "Water and Sewer Construction Fund, 1963," (hereinafter called the "Construction Fund into which shall be placed all of the principal proceeds received by the City from the sale of the Bonds (except an amount equal to the first year's interest payable on the Bonds, which shall be placed in the Principal and Interest Account of the Bond Fund). The moneys in the Construction Fund shall be used to pay that portion of the costs of carrying out the system or plan for making addi- tions to and betterments and extensions of the waterworks utility of the City which is to be paid from proceeds of water and sewer revenue bonds, as adopted by Ordinance No. 381. Section 5. The City hereby covenants and agrees with the owner and holder of each Bond at any time outstanding, as follows: (a) That it will establish, maintain and collect such rates and charges for water and sanitary sewage disposal service so long as any Bonds are outstanding as will, together with interest accruing from investment of moneys in the Reserve Account and any water and sanitary sewage disposal service surcharge payable under any Agreement between the City and any third party, make available for the pay- ment of the principal of and interest on such Bonds an amount equal to at least 1.35 times the average annual debt ser- vice requirements, both principal and interest, of the 1961 Bonds and the Bonds, after deducting costs of ance and operation from the gross revenues of the waterworks utility of the City, but before depreciation, (b) That it will at all times main- tain and keep the waterworks utility of the City in good repair, working order and condition, and also will at all times operate that utility and the busi- ness in connection therewith in an efficient manner and at a reasonable cost. (c) That it will not sell, lease, mortgage or in any manner encumber or dispose of all the property of the water- works utility of the City unless provision is made for the payment into the Bond Fund of a sum sufficient to pay the principal of and interest on all 1961 Bonds and all Bonds at any such 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 provision is made for replacement thereof, or for payment into 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 then outstanding 1961 Bonds and the then outstanding Bonds as the revenue available for debt service for such outstanding 1961 Bonds and outstanding Bonds for the twelve months preceding such sale, lease, encumbrance or disposal from the portion of the utility sold, leased, encumbered or disposed or bears to the revenue avail- able for debt service for such 1961 out- standing Bonds and outstanding Bonds from the entire waterworks utility for the same period. Any such money so paid into the Bond Fund shall be used to retire such outstanding 1961 Bonds and outstanding Bonds at the earliest possible date. (d) That it will, while any of the Bonds remain outstanding, keep proper and separate accounts and records in which complete and separate entries shall be made of all transactions relating to. its waterworks utility, and it will furnish the original purchaser or purchasers of the Bonds or any subsequent holder or holders thereof, at the written request of such holder or holders, complete operating and income statement of the waterworks utility in reasonable detail covering any calendar year not more than ninety days after the close of such calendar year and it will grant any holder or holders of at least 25% of the outstanding 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 the Bonds, it will also furnish to such holder a copy of the most recently completed audit of the City's accounts by the State Auditor of Washington, or such other audit as is authorized by law in lieu thereof. (e) That it will not furnish water or sanitary sewage disposal service to any customer whatsoever free of charge and will promptly take legal action to enforce collection of all delinquent accounts. (f) That it will carry the type of insurance on its waterworks utility property 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 part of the operating and maintaining said utility. If, as, and when, the United States of America or some agency thereof shall pro- vide for war risk insurance, the City further agrees to take out and maintain such insurance on all or such portion of the system on which such war risk insurance may be written in an amount or amounts to cover adequately the value thereof. -12- .(g) That it will pay all costs of maintenance and operation of the water- works utility of the City and the debt service requirements of the 1961 Bonds and the Bonds and otherwise meet the obligations of the City as herein set forth. Section 6. The Bonds shall be in substantially the following form: No. $1,000.00 UNITED STATES OF AMERICA STATE OF WASHINGTON CITY OF TUKWILA WATER AND SEWER REVENUE BOND, 1963 4 .375$ KNOW ALL MEN BY THESE PRESENTS: That the City of Tukwila, State of Washington, for value received, hereby promises to pay to the bearer on the FIRST DAY OF SEPTEMBER, 19 the principal sum of ONE THOUSAND DOLLARS together with interest thereon at the rate of FOUR AND THREE HUNDRED SEVENTY FIVE THOUSANDTHS PER CENT (4.375%) per annum, payable semiannually on the 1st days of March and September of each year (except the interest due on March 1, 1964, shall be for five months), upon the presentation and surrender of the attached interest coupons as they severally mature up to the bond maturity date and with full 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 Tukwila "Water and Sewer Revenue Bond Fund, 1961" (herein- after called the "Bond Fund for pay- ment in full. Both principal of and interest on this bond are payable in lawful money of the United States of America at the office of the Treasurer of the City of Tukwila, Washington, solely out of the special fund created by Ordinance No. 320, as amended, and referred to herein as the Bond Fund, into which fund the City of Tukwila hereby irrevocably binds itself to pay certain fixed amounts out of the gross revenues of the waterworks utility, -13-- including the sewerage system as a part thereof, now belonging to or which may hereafter belong to the City, including all additions, extensions and betterments now or at any time made or constructed without regard to any fixed proportion, namely, an amount sufficient to pay the principal of and interest on the out- standing "Water and Sewer Revenue Bonds, 1961," and on bonds of this issue as they respectively become due, and to accumulate a reserve, all at the times and in h manner set forth in Ordinance No. The gross revenues from the combined water and sewerage systems, comprising the waterworks utility 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 for maintenance and operation, except that the lien and charge upon said revenues for this issue of bonds shall be on a parity with the charge or lien upon such gross revenues for the out- standing "Water and Sewer Revenue Bonds, 1961," issued pursuant to Ordinances Nos. 320, as amended, and 334, and any additional water and sewer revenue bonds which may be hereafter issued on a parity of lien with the "Water and Sewer Revenue Bonds, 1961," and the bonds of this issue in accordance with the provisions of Section 7 of Ordinance No. 334. This bond is one of a total issue of $190,000.00 par value of bonds, all of like date, tenor and effect, except for maturities and options of redemption, all payable from the Bond Fund and all issued by the City under and pursuant to the laws of the State of Washington and Ordinances Nos. 381 and la, of the City, for the purpose of provng funds to pay a portion of the cost of carrying out a system or plan for making additions to and betterments and extensions of the waterworks utility of the City, including a system of sewerage as a part thereof. Bonds numbered 1 to 10, inclusive, maturing September 1, 1969, through September 1, 1973, are issued without the right or option of the City to redeem the same prior to their stated maturity dates. The City has reserved the right to redeem any or all of the outstanding bonds numbered 11 to 190, inclusive, -14- maturing September 1, 1974, through September 1, 1997, on September 1, 1973, or on any semiannual interest payment date thereafter, in inverse numerical order, highest numbers first, at the following percentages of par if redeemed on the following dates, plus accrued interest to date of redemption in each case, to -wit: On September 1, 1973, or March 1, 1D74, at 103 0 On September 1, 1974, or March 1, 1975, at 102 3/4 On September 1, 1975, or March 1, 1976, at 102 1/2% On September 1, 1976, or March 1, 1977, at 102 1 /4f On September 1, 1977, or March 1, 1978, at 102 On September 1, 1978, or March 1, 1979, at 101 3/4% On September 1, 1979, or March 1, 1980, at 101 1/2 On September 1, 1980, or March 1, 1981, at 101 1/4 On September 1, 1981, or March 1, 1982, at 101 On September 1, 1982, or March 1, 1983, at 100 3/40 On September 1, 1983, or March 1, 1984, at 100 1/2 On September 1, 1984, or March 1, 1985, at 100 1/4% On September 1, 1985, and thereafter at par. Notice of any call for redemption of any of the bonds prior to their stated maturity dates shall be published at least once in the official newspaper of the City, or, if none, in the Daily Journal of Commerce, published in Seattle, Washington, not less than thirty nor more than forty -five days prior to the call date. Notice of such redemption shall also be mailed to McLean Company, Inc., at its principal office in Tacoma, Washington, or its successor, not less than thirty nor more than forty -five days prior to the date fixed for such bonds to be redeemed. Interest on any bonds so called for redemption shall cease on the date fixed for such redemption upon payment of the redemption price into the Bond Fund. The City of Tukwila hereby covenants and agrees with the holders of each and every one of the bonds of this issue to fully carry out all covenants and meet all obli- gations of the City, as set forth in Ordinances Nos. 381 and 36 to which Ordinances reference is Hereby made as more fully describing the covenants with and rights of holders of bonds of this issue. 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 of Tukwila, and that all acts, conditions and things required to be done precedent to and in this issuance of this bond have -15- happened, have been done and have been performed as required by law. IN WITNESS WHEREOF, the City of Tukwila, Washington, has caused this bond to be signed by its Mayor and attested by its Clerk and its corporate seal to be hereto affixed, and the interest coupons attached to be signed with the facsimile signatures of those officials as of October 1, 1963. ATTEST: CITY CLERK The interest coupons attached to the Bonds shall be in substantially the following form: On the FIRST DAY OF (MARCH) (SEPTEMBER), 19 the CITY OF TUKWILA, WASHINGTON, upon presentation and surrender of this coupon will pay to bearer at the office of the City Treasurer the sum of ((EIGHTEEN DOLLARS AND TWENTY THREE /HUNDRETHS) ($18.23)), ((TWENTY -ONE DOLLARS AND EIGHTY SEVEN/ HUNDRETHS) ($21.87)), ((TWENTY -ONE DOLLARS AND EIGHTY- EIGHT HUNDRETHS) ($21.88)) in lawful money of the United States of America from the special fund of the City, known as the "Water and Sewer Revenue Bond Fund, 1961," that sum being (five) (six) months' interest then due on its "Water and Sewer Revenue Bond, 1963," dated October 1, 1963, and numbered ATTEST: By CITY CLERK CITY OF TUKWILA, WASHINGTON CITY OF TUKWILA, WASHINGTON By Coupon No. -16- MAYOR MAYOR The Bonds shall be printed on lithographed forms, shall be signed by the Mayor and attested by the Clerk, and shall have the seal of the City affixed thereto, and the interest coupons shall bear the facsimile signatures of the Mayor and the Clerk. Section 7. The City reserves the right to issue additional or refunding water and sewer revenue bonds, which shall constitute a charge or lien upon the gross revenues of the waterworks utility of the City, on a parity of lien with the 1961 Bonds and the Bonds, if the conditions set forth in Section 7 of Ordinance No. 334 shall be met and complied with at the time of issuance of such additional or refunding water and sewer revenue bonds, which section is incorporated in this ordinance and by this reference made a part hereof. Section 8. McLean Company, Inc., of Tacoma, Washington, heretofore offered to purchase the Bonds at a price of $97.00 per each $100.00 of par value thereof, plus accrued interest from the date of issuance to the date of delivery of the Bonds, the City to furnish the printed Bonds and the unqualified approving legal opinion of Messrs. Roberts, Shefelman, Lawrence, Gay Moch, municipal bond counsel of Seattle, Washington, at the City's expense. The City Council, having been of the opinion that no better price could be obtained for the Bonds and that it was in the best interests of the City to accept the same, has accepted that offer, and hereby ratifies that acceptance. The Bonds shall, therefore, immediately upon their execution be delivered to the purchaser upon payment for the Bonds in accordance with the offer. The accrued interest received and such additional amount of the principal proceeds to equal the first year interest requirements on the Bonds shall be deposited into the Bond Fund and the balance of the principal amount received from the payment for the Bonds shall be deposited in the Construction Fund of the City. -17- PASSED by the City Council of the City of Tukwila, Washington, at a regular meeting thereof, and APPROVED by the Mayor this 7th day of October, 1963. FORM APPROVED: G� Y ATTORNEY JOHN B. STRANDER MAYOR LILLIAN BALK CITY CLERK I, LILLIAN BALK, Clerk of the City of Tukwila, Washington, do hereby certify that the attached Ordinance, being Ordinance No. 3 I) is a true and correct copy of the original Ordinance passed on the 7th day of October, 1963, as said Ordinance appears on the Minute Book of the City. DATED this 7th day of October, 1963. LILLIAN BALK, City Clerk