HomeMy WebLinkAboutOrd 0334 - Water and Sewer Revenue Bonds for Waterworks Utility 7 1X) ne),,x0x1 g
TOWN OF TUKWILA, WASHINGTON 1 °J1
ORDINANCE NO. 334
AN ORDINANCE of the Town of Tukwila,
Washington, providing for the issuance of
$170,000.00 par value of "Water and Sewer
Revenue Bonds, 1961," of the Town for the
purpose of providing a portion of the
funds with which to carry out the system
or plan for a system of sewerage for the
Town, all to become part of the waterworks
utility of the Town, as adopted by Ordinance
No. 320 as amended; fixing the date, form,
maturities, interest rates, terms and
covenants of said bonds; and providing for
the sale and delivery of said bonds to
McLean SG Company, Inc., Tacoma, Washington.
WHEREAS, the Town of Tukwila, Washington, 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 that system shall 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, said waterworks utility of the Town, as hereinafter
referred to, being deemed to include the systems of water supply
and distribution and sanitary sewer disposal, as combined pur-
suant to RCW 35.67.320 by that Ordinance No. 320; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE TOWN OF TUKWILA,
WASHINGTON, as follows:
Section 1. For the purpose of obtaining a portion of
the funds with which to carry out the system or plan for a system
of sewerage to become a part of the waterworks utility of the
Town, as adopted and ordered to be carried out by Ordinance No.
320, as amended, there shall be issued and sold the entire
authorized issue of $170,000.00 par value of "Water and Sewer
Revenue Bonds, 1961" (hereinafter called the "Bonds The Bonds
shall be dated September 1, 1961, shall bear interest at the rate
of 4.60% per annum payable semiannually on March 1 and September
1 of each year, interest to maturity to be evidenced by coupons
to be attached to the Bonds with full obligation on the part of
the Town to pay interest at the same rate or rates 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 Town (hereinafter 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 Town.
The Bonds shall mature serially in accordance with the
following schedule:
Bond Numbers
(Inclusive) Amounts Maturities
1 to 3 3,000.00 September 1, 1964
4 to 6 3,000.00 September 1, 1965
7 to 9 3,000.00 September 1, 1966
10 to 13 4,000.00 September 1, 1967
14 to 17 4,000.00 September 1, 1968"
18 to 21 4,000.00 September 1, 1969
22 to 25 4,000.00 September 1, 1970.
26 to 29 4,000.00 September 1, 1971
30 to 33 4,000.00 September 1, 1972
34 to 38 5,000.00 September 1, 1973
39 to 43 5,000.00 September 1, 1974
44 to 48 5,000.00 September 1, 1975
49 to 53 5,000.00 September 1, 1976
54 to 59 6,000.00 September 1, 1977
60 to 65 6,000.00 September 1, 1978
66 to 71 6,000.00 September 1, 1979
72 to 77 6,000.00 September 1, 1980
78 to 84 7,000.00 September 1, 1981
85 to 91 7,000.00 September 1, 1982
92 to 98 7,000.00 September 1, 1983
99 to 106 8,000.00 September 1, 1984
107 to 114 8,000.00 September 1, 1985
115 to 122 8,000.00 September 1, 1986
123 to 131 9,000.00 September 1, 1987
132 to 140 9,000.00 September 1, 1988
141 to 150 10,000.00 September 1, 1989
151 to 160 10,000.00 September 1, 1990
161 to 170 10,000.00 September 1, 1991
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Section 2. Bonds numbered 1 to 9, inclusive, maturing
September 1, 1964 through September 1, 1966, shall be issued
without the right or option of the Town to redeem the same prior
to their stated maturity dates.
The Town of Tukwila reserves the right to redeem any
or all of the outstanding Bonds numbered 10 to 170, inclusive,
maturing September 1, 1967 through September 1, 1991 on September
1, 1966, or on any semiannual interest payment date thereafter,
in inverse numerical order, highest numbers first, at the follow-
ing percentages of par if redeemed on the following dates, plus
accrued interest to date of redemption in each case, to wit:
On September 1, 1966, or March 1, 1967, at 102 -1 /2%
On September 1, 1967, or March 1, 1968, at 102
On September 1, 1968, or March 1, 1969, at 101 -1/2%
On September 1, 1969, or March 1, 1970, at 101
On September 1, 1970, or March 1, 1971, at 100 -1 /2%
On September 1, 1971, and thereafter at par.
Notice of any call for redemption of any of the Bonds
prior to their stated maturity date shall be published at least
once in the official newspaper of the Town, 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 said redemption shall also be mailed to McLean
Company, Inc., at its principal office in Tacoma, Washington,
not less than thirty nor more than forty -five days prior to the
call date. 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.
Section 3. The Bond Fund is hereby divided into two
accounts, namely, a "Principal and Interest Account" and a
"Reserve Account." So long as any Bonds are outstanding against
the Bond Fund, the Treasurer of the Town shall set aside and pay
into the Bond Fund out of the gross revenues of the waterworks
utility of the Town including all additions, extensions and
betterments thereof at any time made, a fixed amount without
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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 Sep-
tember, 1962, 1 /12th of the next ensuing
twelve months' requirements for both
principal and interest on the Bonds; and
(b) Into the Reserve Account, begin-
ning with the first month that revenues of
the waterworks utility of the Town, exclud-
ing any water and sanitary sewage disposal
service surcharge payable under any Agree-
ment between the Town and any third party,
are sufficient to pay expenses of mainten-
ance and operation of the waterworks utility
of the Town and the debt service requirements
of the Bonds and meet the requirements of
this Ordinance and any subsequent issue of
bonds on a parity of lien with the Bonds and
their respective bond ordinances, 1 /60th of
an amount equal to one year's average annual
debt service requirements for the" Bonds
which total reserve equal to one yearls
annual average debt service requirements
for the Bonds shall be accumulated no later
than five years thereafter.
The Reserve Account may be accumulated from any other
moneys which the Town 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 Bonds are outstanding. When the total amount
in the Bond Fund shall equal the total amount of principal and
interest for all 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
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waterworks utility of the Town first available after making
necessary provision for the required payments into the Principal
and Interest Account. The money in the Reserve Account shall
otherwise be held intact and may be applied against the last
outstanding Bonds.
All money in the Reserve Account above provided for
may be kept on deposit in the official bank depository of the
Town, or may be invested in United States Government obligations
redeemable at a fixed price and maturing not later than August 1,
1991. 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
Town 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 parity with the
charge or lien upon such gross revenues for any additional water
and sewer revenue bonds which may be hereafter issued on a parity
with the Bonds in accordance with the provisions of Section 7
of this Ordinance.
Section 4. There is created and established in the
office of the Town Treasurer a special fund to be known as the
"Water and Sewer Construction Fund, 1961," (hereinafter called
the "Construction Fund in which shall be placed all of the
principal proceeds received by the Town 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
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shall be used to pay all of the costs in connection with the
carrying out of the system or plan for a system of sewerage for
the Town as adopted by Ordinance No. 320, as amended.
Section 5. The Town 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 Town and any third
party, make available for the payment of the
principal of and interest on such Bonds an
amount equivalent to at least 1.35 times the
average annual debt service requirements,
both principal and interest, of the Bonds,
after deducting costs of maintenance and opera-
tion from the gross revenues of the waterworks
utility of the Town, but before depreciation.
(b) That it will at all times maintain
and keep the waterworks utility of the Town
and all additions thereto and betterments,
replacements and extensions thereof in good
repair, working order and condition, and also
will at all times operate that utility and the
business 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 waterworks utility of the Town
unless provision is made for the payment into
the Bond Fund of a sum sufficient to pay the
principal of and interest on all 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 said
waterworks utility of the Town 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 outstand-
ing Bonds as the revenue available for debt
service for such outstanding Bonds for the
twelve months preceding such sale, lease, en-
cumbrance or disposal from the portion of the
utility sold, leased, encumbered or disposed
of bears to the revenue available for debt
service for such Bonds from the entire utility
for the same period. Any such money so paid
into the Bond Fund shall be used to retire such
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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 trans-
actions relating to its waterworks utility, and
it will furnish the original purchaser or pur-
chasers 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 said utility in reasonable
detail covering any calendar year not more
than ninety days after the close of such calen-
dar 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 Town and all
records, accounts and date of the Town relating
thereto. Upon request of any holder of any of
said Bonds, it will also furnish to such holder
a copy of the most recently completed audit of
the Town's account 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 cus-
tomer whatsoever free of charge and will
promptly take legal action to enforce collec-
tion of all delinquent accounts.
(f) That it will carry the type of in-
surance 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 provide for war risk in-
surance, the Town 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.
(g) That it will pay all costs of main-
tenance and operation of the waterworks utility
of the Town and the debt service requirements
of the Bonds and otherwise meet the obligations
of the Town 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
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TOWN OF TUKWILA
WATER AND SEWER REVENUE BOND, 1961
4.60%
KNOW ALL MEN BY THESE PRESENTS: That the
Town of Tukwila, State of Washington, for value
received, hereby promises to pay to the bearer
on the 1st day of September, 19 the princi-
pal sum of
ONE THOUSAND DOLLARS
together with interest thereon at the rate of
FOUR AND SIXTY HUNDREDTHS PER CENT (4.60')
per annum, payable semiannually on the 1st days
of March and September of each year, upon the
presentation and surrender of the attached in-
terest coupons as they severally mature up to
the bond maturity date and with full obligation
on the part of the Town 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" (hereinafter
called the "Bond Fund for payment 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
Town 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 Town of Tukwila hereby ir-
revocably binds itself to pay certain fixed
amounts out of the gross revenues of the water-
works utility, including the sewerage system as
a part thereof, now belonging to or which may
hereafter belong to the Town, 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 this issue of bonds as they respectively
become due, and to accumulate a reserve, all at
the time and in the manner set forth in Ordinance
No. 33i/
The gross revenues from the combined water
and sewerage systems, comprising the waterworks
utility of the Town, 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, ex-
cluding charges for maintenance and operation,
except that the lien and charge upon said
revenues for this issue of bonds shall be on
parity with the charge or lien upon such gross
revenues for any additional water and sewer
revenue bonds which may be hereafter issued on
a parity with said bonds in accordance with
the provisions of Section 7 of Ordinance No. 1335A.
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This bond is one of a total issue of
$170,000.00 par value of bonds, all of like
date, tenor and effect, except as to maturities
and options of redemption, all payable from the
Bond Fund and all issued by the Town under and
in pursuance of the laws of the State of
Washington and Ordinances Nos. 320, as amended,
and 334 of the Town, for the purpose of pro-
viding funds to pay a portion of the cost of
acquisition and construction of a system of
sewerage for the Town as a part of the water-
works utility of the Town.
Bonds numbered 1 to 9, inclusive, of a
total par value of $9,000.00, maturing Septem-
ber 1, 1964 through September 1, 1966, are
issued without the right or option of the Town
to redeem the same prior to their stated ma-
turity dates.
The Town reserves the right to redeem any
and all of the outstanding bonds of this issue
numbered 10 to 170, inclusive, of a total par
value of $161,000.00, maturing September 1,
1967 through September 1, 1991, on September
1, 1966, or on any semiannual interest payment
date thereafter, in inverse numerical order,
highest number first, at the following percent-
ages of par if redeemed on the following dates,
plus accrued interest to date of redemption in
each case, to wit:
On September 1, 1966, or March 1, 1967, at 102 -1/2%
On September 1, 1967, or March 1, 1968, at 102
On September 1, 1968, or March 1, 1969, at 101 -1/2%
On September 1, 1969, or March 1, 1970, at 101
On September 1, 1970, or March 1, 1971, at 100 -1 /2%
On September 1, 1971, and thereafter, at par.
Notice of such call for redemption shall
be published once in the official newspaper of
the Town, or, if none, in the Daily Journal of
Commerce, Seattle, Washington, not less than
thirty nor more than forty -five days prior to
the call date. Notice of said intended redemp-
tion shall also be mailed to McLean Company,
Inc., at its principal office in Tacoma,
Washington, or its successor, within the same
period. Interest on any bonds of this issue
so called for redemption shall cease on the
date fixed for such redemption upon payment
of the redemption price into the Bond Fund.
The Town 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 obligations of the
Town, as set forth in Ordinances Nos. 320, as
amended, and to which Ordinances refer-
ence is hereby mdde as more fully describing
the covenants with and rights of holders of bonds
of this issue.
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It is hereby certified and declared that
the bonds of this issue are issued pursuant
to and in strict compliance with the Constitu-
tion and Laws of the State of Washington and
the Ordinances of the Town of Tukwila, and
that all acts, conditions and things required
to be done precedent to and in the issuance
of this bond have happened, have been done and
have been performed as required by law.
IN WITNESS WHEREOF, the Town 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
this 1st day of September, 1961.
TOWN OF TUKWILA, WASHINGTON
BY
MAYOR
ATTEST:
TOWN CLERK
The interest coupons attached to the Bonds shall be
in substantially the following form:
On the 1st day of (March) (September),
19 the TOWN OF TUKWILA, WASHINGTON, upon
presentation and surrender of this coupon,
will pay to bearer at the office of the Town
Treasurer the sum of TWENTY THREE DOLLARS
($23.00) in lawful money of the United States
of America from the special fund of the Town,
known as the "Water and Sewer Revenue Bond
Fund, 1961" said sum being six months' in-
terest then due on its "Water and Sewer
Revenue Bond, 1961," dated September 1, 1961,
and numbered
Coupon No.
ATTEST:
TOWN CLERK
TOWN OF TUKWILA, WASHINGTON
BY
MAYOR
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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 Town affixed thereto, and the interest coupons
shall bear the facsimile signatures of the Mayor and the Clerk.
Section 7. The Town reserves the right to issue addi-
tional or refunding water and sewer revenue bonds which shall
constitute a charge or lien upon the gross revenues of the water-
works 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 condi-
tions 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 surcharge
payable under any Agreement between the Town
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 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, antici-
pated to be received from the proposed improve-
ment in connection with which such additional
water and sewer revenue bonds are to be issued,/
the 57--
taxes, to equal at least 1.35 times the average
annual principal and interest requirements of
all then outstanding 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 Sec-
tion 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
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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 commencing 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
shall 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 additional revenue bonds.
In lieu of the accumulation of a reserve
in the manner provided in this subsection 7 (c),
the ordinance authorizing 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 ser-
vice 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 payment 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 matur-
ing installments of either principal or interest
on such additional bonds. That third party shall
also be bound by agreement with the Town to make
such additional cash deposits in escrow as are
necessary to maintain that deposit at the re-
quired 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
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in for those additional bonds equal the average
annual debt service of those additional bonds.
Section 8. The words "term bond maturity year or years"
shall mean any last maturity year in which the outstanding amount
of bonds of any one issue or series which are scheduled to mature
(regardless of any reservation of prior redemption rights) is more
than two times the average annual principal maturity of the bonds
of that issue or series and of all bonds issued on a parity there-
with for three years immediately preceding such term bond maturity
year.
Section 9. 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 Town to furnish the printed Bonds and the un-
qualified approving legal opinion of Messrs. Weter, Roberts
Shefelman, municipal bond counsel of Seattle, Washington, at the
Town's expense. The Town Council, being of the opinion that no
better price could be obtained for the Bonds and that it is in
the best interests of the Town to accept the same, hereby accepts
said offer. The Bonds, shall, therefore, immediately upon their
execution be delivered to the purchaser upon payment for the
Bonds in accordance with the offer. The principal amount received
from the payment for the Bonds shall be deposited in the "Water-
Sewer Construction Fund" of the Town, and the accrued interest
received shall be deposited in the Bond Fund.
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PASSED by the Town Council of the Town of Tukwila at
a regular meeting thereof, and APPROVED by the Mayor this 7th
day of August, 1961.
TOWN OF TUKWILA, WASHINGTON
By
MAYOR
Attest:
T O W N C L i K K
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