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HomeMy WebLinkAboutOrd 1694 - Water and Sewer Revenue Bonds for Waterworks Utility (Repealed by Ord 1736) Ordinance No. 1694 repealed by 1736 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, RELATING THE WATERWORKS UTILITY OF THE CITY, INCLUDING THE SYSTEM OF SEWERAGE AS A PART THEREOF; SPECIFYING, ADOPTING AND ORDERING TO BE CARRIED OUT A SYSTEM OR PLAN OF ADDITIONS TO AND BETTERMENTS AND EXTENSIONS OF THE WATERWORKS UTILITY OF THE CITY; AUTHORIZING THE ISSUANCE OF WATER AND SEWER REVENUE BONDS OF THE CITY TO PAY A PART OF THE COST OF THAT SYSTEM OR PLAN; AND AUTHORIZING INTERFUND LOANS PENDING THE ISSUANCE OF THOSE BONDS. WHEREAS, beginning in 1995, The City of Seattle intends to transfer to the City the responsibility for providing water and sewer services to the East Marginal /Duwamish corridor and the Ryan Hill areas of the City; and WHEREAS, the City Council has determined that certain capital improvements to the Waterworks Utility are necessary to enable the City to provide water and sewer services to those areas of the City; and WHEREAS, the City Council deems it to be in the best interest of the City that the City borrow money by the issuance of water and sewer revenue bonds and, pending the issuance of those bonds, make temporary loans from available City funds for the purpose of providing a part of the funds with which to pay the costs of the constructing the improvements described herein; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Adoption of Plan of Additions. The City specifies, adopts and orders to be carried out system or plan of additions to and betterments and extensions of the Waterworks Utility (the "Plan of Additions" and each element thereof an "Addition ") described as follows: (1) Construct new 16" line along East Marginal Way with new metered connection and intertie with Seattle system; (2) Construct additional 16" line to connect East Marginal area to 18" line in Allentown and Tukwila's existing storage reservoir; and (3) Construct required improvements in Ryan Hill area, including new metering point, intertie with Seattle and new pipelines as required. The estimated cost of the Plan of Additions, as nearly as may be determined, is declared to be $4,000,000, all of which is expected to be financed from the proceeds of water and sewer revenue bonds and other obligations of the City. The Plan of Additions may be modified to include other improvements if the City determines by ordinance that those amendments or other improvements constitute a system or plan of additions to and betterments and extensions of the Waterworks Utility. -1- Section 2. Authorization of Bonds. The City shall borrow money and issue negotiable water and sewer revenue bonds in the amount of not to exceed $4,000,000 (the "Bonds to provide funds to pay the costs of carrying out the Plan of Additions and to pay the costs of issuance and sale of the Bonds. The Bonds shall be payable from the gross revenues of the Waterworks Utility and shall be issued either on a parity of lien with the City's outstanding water and sewer revenue bonds or in a lien position subordinate thereto. The Bonds shall not be a general obligation of the City. Section 3. Authorization of Interfund Loans. Pending the receipt of the proceeds of the Bonds authorized in Section 2 hereof, the Finance Director is authorized to provide for temporary loans (the "Loans to the City's Water /Sewer Construction Fund 403 (the "Construction Fund from the City's Sewer Fund 402 (the "Sewer Fund or other available funds of the City for the purpose of paying part of the cost of the Plan of Additions. The Loans shall be in the aggregate principal amount of not to exceed $4,000,000. The Loans shall bear interest at a rate equal to the interest rate earned on investments in the State of Washington Investment Pool (computed on the basis of a 360 -day year of twelve 30-day months) and shall be payable as determined by the Finance Director, except that the term of the Loans shall not exceed one year. The City Council finds that making the Loans is in the best interest of the City. Section 4. Ratification. All actions previously taken and consistent with the provisions of this ordinance are ratified and confirmed. Section 5. Severability. If any section, sentence, clause or phrase of this ordinance should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this ordinance. Section 6. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force five (5) days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this oqa' day of ,1994. \/a4A U), /apt/ Rants, Mayor ATTEST /AUTHENTICATED: J. e E. Cantu, City Clerk APPROVED AS TO FORM: By O(� -t/1-, P- Office of the City Attorney FILED WITH THE CITY CLERK: J7- PASSED BY THE CITY COUNCIL: 2 PUBLISHED: -f-'1 )4 EFFECTIVE DATE: !v ORDINANCE NO.: (0 9/ wtrwks 02/17/94 -2-