Loading...
HomeMy WebLinkAboutOrd 1337 - Water and Sewer Revenue Bonds for Waterworks Utility 1408 §4 1575 §4 CITY OF TUKWILA, WASHINGTON ORDINANCE NO. 1-3-3 AN ORDINANCE of the City of Tukwila, Washington, relating to the waterworks utility of the City; specifying and adopting a system or plan of additions to and betterments and extensions of the existing waterworks utility of the City; declaring the esti- mated cost thereof; authorizing the issuance of $2,900,000 par value of water and sewer revenue bonds; creating a special bond anticipation notes repayment fund; authorizing the issuance and sale of bond anticipation notes in the principal amount of $2,900,000 pending the receipt of bond proceeds; fixing the form, terms and covenants relating to such bond anticipation notes; and providing for the sale of such notes to Peoples National Bank of Washington of Seattle, Washington. WHEREAS, the City (then Town) of Tukwila, Washington (the "City pursuant to RCW 35.67.030 et seq. and its Ordinance No. 320, passed May 1, 1961, heretofore provided that the system of sewerage of the City, together with all additions, extensions and betterments thereto, should become a part of its waterworks system and the cost of construction, maintenance and operation of such system of sewerage should be chargeable to the water- works system of the City, such combined water and sewage systems, together with all additions, extensions and betterments thereto, being hereafter referred to as the "Waterworks Utility" of the City; and WHEREAS, the City Council has determined that in further- ance of Ordinance No. 1335, passed November 5, 1984, it is necessary and in the best interests of the City for it to specify and adopt a system or plan for making additions to and betterments and extensions of the Waterworks Utility "Plan of Additions and Betterments and to provide a method of financing the same; and WHEREAS, the City expects to issue and sell its water and sewer revenue bonds in the approximate amount of $2,900,000 to pay the cost of carrying out such Plan of Additions and Better- ments; and WHEREAS, Chapter 39.50 RCW authorizes cities to issue short -term obligations in anticipation of the receipt of bond proceeds; and WHEREAS, the City Council has determined it is in the best interest of the City to issue and sell $2,900,000 in bond anticipation notes in order to provide a portion of the funds to defray the cost of carrying out the Plan of Additions and Betterments pending the receipt of such bond proceeds; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, DO ORDAIN as follows: Section 1. As used in this ordinance, the following words shall have the following meanings: (a) "Bonds" shall mean the $2,900,000 par value of water and sewer revenue bonds authorized by this ordinance. (b) "City" shall mean the City of Tukwila, Washington. (c) "Construction Fund" shall mean the "Water /Sewer Construction Fund No. 403 382 600 reinstituted by Ordinance No. 1335, passed November 5, 1984. (d) "Note" shall mean the $2,900,000 par value "Water and Sewer Revenue Bond Anticipation Note, 1984" of the City, the issuance and sale of which is provided for in Section 5 of this ordinance. (e) "Note Fund" shall mean the "Water and Sewer Revenue Bond Anticipation Note Proceeds Fund, 1984," created by Section 7 of this ordinance. (f) "Plan of Additions and Betterments" shall mean the system or plan providing for additions to and betterments and extensions of the Waterworks Utility of the City as adopted and ordered to be carried out by Section 2 of this ordinance. 2 (g) "Registrar" shall mean the Finance Director of the City. (h) "Waterworks Utility" shall mean the existing Water- works Utility of the City, including the sanitary sewerage system as a part thereof as combined with the water system by the City pursuant to RCW 35.67.030 et seq_ and the City's Ordinance No. 320, passed May 1, 1961, as the same has been and will be added to, bettered, improved and extended for as long as any of the Notes are outstanding. Section 2. It is found and declared that the public health, welfare, safety and convenience require and it is in the best interest of the inhabitants of the City that certain improvements to the Waterworks Utility be undertaken within the City, and the City, specifies, adopts and orders to be carried out a system or plan for the acquisition and construction of additions to and betterments and extensions of the Waterworks Utility of the City more particularly described in Exhibit A attached hereto and by this reference incorporated herein. There shall be included in the foregoing all necessary tees, wyes, valves, pumps, couplings, connections, machinery, equipment and appurtenances, together with all work as may be incidental to and necessary to the foregoing acquisition, construction and installation, and, in addition, the City shall acquire all property, both real and personal, or any interest therein, equipment, rights -of -way, easements and franchises necessary to carry out such system or plan, all of which is more particularly set forth in reports, maps, plans and specifica- tions prepared by CH2F1 Hi 11 R. W. Beck Associates, Entranco Engineers etc., consulting engineers to the City. The City may add to or make such changes in the details of such plans, either prior to or during the course of actual construction, which may be found necessary and desirable as long 3 as such changes do not substantially affect or change the purpose of the system or plan or the services to be rendered thereby. Section 3. The life of the Plan of Additions and Better- ments is declared to be at least forty years. Section 4. The estimated cost of the acquisition, con- struction and installation of the Plan of Additions and Better- ments, including the costs of financing, issuance, sale and administration of the Bonds, is declared to be, as near as may be, the sum of $2,900,000, which shall be paid from the proceeds of the issuance and sale of the Bonds and from any other funds of the City legally available to be used therefor. The Bonds are authorized to be issued at such time as is determined by future ordinance, and shall bear such interest, shall mature at such times and contain such other terms and covenants as shall be determined by future ordinance. Section 5. Pending the receipt of the proceeds of the Bonds, the City shall issue the Note in the principal amount of $2,900,000 for the purpose of paying the cost of carrying out the Plan of Additions and Betterments, the costs of issuance and sale of the Note and paying interest when due on the Note. The Note shall be called the City's "Water and Sewer Revenue Bond Anticipation Note, 1984 shall be dated as of the date of its issuance; shall mature December 20, 1986; shall be numbered R -1; shall be in fully registered form; and shall bear interest from the date of issuance at a rate per annum equal to 0.25% greater than the A -1 /P -1 90 -day tax exempt commercial paper rate (published by Dow Jones Capital Markets) set two working days prior to the date of delivery of the Note to the original purchaser thereof and adjusted quarterly thereafter on the 20th day of each March, June, September and December, commencing March 20, 1985, to 0.25% greater than the then A -1 /P -1 90 -day 4 tax- exempt commercial paper rate set two working days prior to each such date. Interest shall be paid quarterly on the 20th day of each March, June, September and December commencing March 20, 1985. If the Note is not redeemed upon proper presentment at its maturity or call date, the District shall be obligated to pay interest at the same index rate from and after maturity until the Note, both principal and interest, shall have been paid in full or until sufficient money for such payment is on deposit in the Note Fund and the Note has been called for pay- ment in the manner hereinafter set forth. Both principal of and interest on the Note shall be payable in lawful money of the United States of America solely from the proceeds of the Bonds to be issued hereafter, the proceeds of additional short term obligations authorized to be issued and from other money of the City legally available therefor. The Note shall be payable solely out of the Note Fund and shall not be a general obliga- tion of the City. The City Council finds that the interest rate index fixed for the Note is in the best interest of the City. Section 6. The City reserves the right to redeem the Note on any interest payment date at par plus accrued interest to date of redemption upon giving ten days' written notice to Peoples National Bank of Washington, Seattle, Washington. Interest on the Note shall cease on the date fixed for prepay- ment in full upon payment into the Note Fund of sufficient money to pay fully the principal of and interest to date of prepayment of the Note. Section 7. The principal proceeds of the issuance and sale of the Note shall be deposited in the Construction Fund. Money on deposit in the Construction Fund shall be expended solely for the purposes of the Note and, pending such expenditure, may be invested and the investment earnings retained in such fund and applied to the purposes for which the Note is issued. 5 There is created in the Office of the City Finance Director a special fund to be known and designated as the "Water and Sewer Revenue Bond Anticipation Note Fund, 1984" (the "Note Fund to be used solely for the purpose of paying the princi- pal of and interest on the Note. The City covenants that it will deposit into the Note Fund on or before each interest payment date of the Note sufficient funds from Note proceeds on deposit in the Construction Fund or other money of the City legally available therefor to pay that interest when due, and, on or before the maturity date of the Note, sufficient funds from the proceeds of the issuance of the Bonds, other short term obligations and /or other funds of the City legally available therefor to pay the principal of the Note when due. Section 8. The City irrevocably pledges to issue a suffi- cient amount of the Bonds or other short -term obligations on or before December 20, 1986, to redeem the Note from the proceeds of the Bonds, additional notes or other money legally available for such purpose. The City covenants that it will not issue additional water and sewer revenue bonds without first providing for the payment of principal of and interest on the Note. Section 9. Reqistration of Note. The Note shall be registered as to both principal and interest on the books or records maintained by the Registrar (the "Note Register The Note shall be issued only in registered form and shall be registered in the name of Peoples National Bank of Washington, Seattle, Washington, or its registered assignees to whom the Note has been transferred in accordance with its terms (the "Registered Owners The Registrar is authorized on behalf of the City to authenticate and deliver the Note issued, transferred or exchanged in accordance with the provisions of the Note and this ordinance and to carry out all the Registrar's powers and duties 6 under this ordinance. The Note may be transferred only if endorsed in the manner provided thereon and surrendered to the Registrar. Transfer of the Note shall be accomplished by the Registrar's receiving the Note to be transferred, cancelling it and issuing a new certificate in the form of the Note to the transferee after registering the name and address of the trans- feree on the Note Register. Such exchange or transfer shall be without cost to the owner or transferee. Interest on the Note shall be paid by check or draft mailed to the registered owner of the Note at the address for such owner appearing in the Note Register. The record date for all payments of interest on the Note shall be the 15th working day of the month preceding the interest payment date. Principal of the Note shall be payable upon presentation and surrender of the Note by the registered owner at the office of the Registrar in Tukwila, Washington. When the Note has been paid in full, both principal and interest, the Note shall be surrendered by the Registered Owners to the Registrar, who shall destroy the same one month after receipt of such Note and shall furnish to the City a certificate of destruction. No further note shall be executed or authenti- cated or issued in exchange or substitution thereof. Section 10. The Note shall be a negotiable instrument to the extent provided by RCW 62A.8 -102 and 62A.8 -105. Section 11. The Note shall be typewritten in a form con- sistent with the terms of this ordinance, shall be signed by the manual signatures of the Mayor and Clerk of the City and sealed with the seal of the City. Only such Note as bears thereon a Certificate of Authentication manually executed by the Registrar shall be valid or obligatory for any purpose or entitled to the benefits of this ordinance. Such Certificate of Authentication shall be conclusive evidence that the Note so authenticated has 7 been duly executed, authenticated and delivered and is entitled to the benefits of this ordinance. In case the official who shall have executed the Note shall cease to be such official of the City before the Note so signed shall have been authenticated or delivered by the Registrar, or issued by the City, such Note nevertheless may be authenticated, delivered and issued and upon such authentication, delivery and issue, shall be as binding upon the City as though the official who signed the same had continued to be such official of the City. Any Note also may be signed and attested on behalf of the City by such person as at the actual date of execution of such Note shall be the proper official of the City although at the original date of such Note such person shall not have been such official of the City. The City covenants that it will spend the principal pro- ceeds of the Note with due diligence to completion of the purposes specified in this ordinance and will make no use of the proceeds of the Note or of its other money at any time during the term of the Note which will cause the Note to be an arbi- trage obligation within the meaning of Section 103(c) of the United States Internal Revenue Code of 1954, as amended, and applicable regulations promulgated thereunder. Section 12. Peoples National Bank of Washington of Seattle, Washington, has submitted an offer to purchase the Note at a price of par under the terms and conditions set forth in that offer, including the payment of a fee of $29,000 as a financing cost to Peoples National Bank of Washington at the time of delivery of the Note and an additional fee of $29,000 as a financing cost on December 20, 1985, in the event the Note has not been redeemed by such date, the City to furnish the printed or typewritten Note and the approving legal opinion of Roberts Shefelman, municipal bond counsel of Seattle, Washington, at the 8 City's expense. Bond Counsel shall not be required to review or express any opinion concerning the completeness or accuracy of any official statement, offering circular or other sales material issued or used in connection with the Note, and bond counsel's opinion shall so state. The City Council, deeming it to be in the best interest of the City that such offer be accepted, accepts the same. The Note shall be delivered to Peoples National Bank of Washington in Seattle, Washington, immediately upon its authenti- cation upon payment therefor in accordance with such offer. Section 13. This ordinance shall be in full force and effect five days after its passage and posting as by law required. Section 14. Not withstanding any other provisions of this ordinance, the bond sale authorized by this ordinance shall not be carried out until a system of bond registration, complying with requirements of Federal law, has been established by separate ordinance. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a regular meeting thereof this 3rd day of December 1984. f n� Gaty L. Yusen, A ATTEST: Maxine Anderson, City Clerk APPROVED AS TO FORM: Office of the City Attorney_ ;V \Larry Marti FILED WITH THE CITY CLERK: 11/29/84 PASSED BY THE CITY COUNCIL: 12/03/84 PUBLISHED RECORD CHRONICLE: 12/09/84 EFFECTIVE DATE: 12/15/84 ORDINANCE NO. 1337 -9- E X H I B I T A IN 000's SEWER 1984 1985 1936 1987 TOTAL Eliminate Lift Station #4 70 31 101 Replace Lift Station #2 35 312 126 473 Eliminate Lift Station #3 15 108 123 Reconstruct Sewers Southcenter So. 8 61 69 Eliminate Lift Station #6 147 147 By Pass Piping 5 19 24 Manhole Relocation -30 30 Subtotals Sewer $125 $508 $187 $147 967 WATER Water Well #1 11 71 91 173 North Hill Transmission 44 303 347 North Hill Pump Station 5 50 183 238 Reservoir #2 Storage 10 70 265 545 890 Water Supply Control 20 70 77 167 Interurban Pipeline 10 90 100 North City Trans -Eng. 18 18 Subtotals Water 70 532 $619 $712 $1,933 TOTALS $195 $1,040 $806 $859 $2,900