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HomeMy WebLinkAboutOrd 0748 - Water and Sewer Revenue Bonds for Waterworks Utility 772 §7 - CITY OF TUKWILA, WASHINGTON ORDINANCE NO. q- 1 1g AN ORDINANCE specifying and adopting a system or plan of additions to and betterments and extensions of the waterworks utility of the City of Tukwila, including the system of sewerage as a part thereof; declaring the estimated cost thereof as nearly as may be; providing for the issuance of $675,000.00 par value of "Water and Sewer Refunding and Construction Revenue Bonds, 1972," for the purpose of obtaining the funds to pay a part of the cost of carrying out such system or plan and to pay, retire and refund all outstanding "Water and Sewer Revenue Bonds, 1970," of the City; fixing the date, form, denomination, maturities, interest rates, terms and covenants of such bonds; creating a special account in the bond redemption fund to provide for the refunding operation; providing for and authorizing the purchase of certain direct obligations of the United States of America out of the proceeds of the sale of such bonds and for the use and application of the moneys to be derived from such investment; providing for the redemption on July 1, 1985, of the then outstanding "Water and Sewer Revenue Bonds, 1970 and providing for the sale and delivery of the refunding and construction revenue bonds to Foster Marshall Inc. of Seattle, 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 distribution 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 Bonds, 1961" (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 or refunding water and sewer revenue bonds on a parity of lien with the 1961 Bonds if certain conditions should be met and complied with at the time of the issuance of such additional or refunding bonds; and WHEREAS, the City of Tukwila, Washington, by Ordinance No. 381, passed by the City Council and approved by the Mayor on the 3rd day of June, 1963, adopted a system or plan for making additions to and betterments and extensions of the waterworks utility of the City, consisting of the construction and installation of certain sewer collection lines, trunk sewer lines, and general facilities, estimated the total cost of said plan to be $819,000.00, and provided that payment therefor would be made (a) by assessments to be levied in the amount of not to exceed $412,000.00 against property specially benefited by the proposed improvement and included in a local improvement district to be formed, and (b) from the proceeds received from the issuance and sale of "Water and Sewer Revenue Bonds, 1963," in the amount of not to exceed $407,000.00 par value; and WHEREAS, by Ordinance No. 382, passed by the City Council and approved by the Mayor on the 1st day of July, 1963, the system or plan of additions to and betterments and extensions of the waterworks utility of the City of Tukwila, as adopted by Ordinance No. 381, was ordered to be carried out, Local Improvement District No. 5 was established, and it was ordered that not to exceed $412,000.00 of the cost and expense of carrying out said system or plan should be paid -2- by assessments to be levied in the amount of not to exceed $412,000.00 against the property specially benefited by such improvement and included in Local Improvement District No. 5 and the remaining cost to be paid from the proceeds to be received from the issuance and sale of "Water and Sewer Revenue Bonds, 1963" (hereinafter referred to as the "1963 Bonds in the amount of not to exceed $407,000.00, provided, however, that in the event that Val Vue Sewer District, King County, Washington, should construct the "Val Vue Trunk Sewers" as defined in Ordinance No. 381 the amount of such water and sewer revenue bonds should be reduced by $140,000.00 to not to exceed $267,000.00; and WHEREAS, the City thereafter contracted with Val Vue Sewer District to construct said "Val Vue Trunk Sewers," and, pursuant to Ordinance No. 387, passed by the City Council and approved by the Mayor on October 7, 1963, issued and sold $190,000.00 par value of the not to exceed $267,000.00 par value of said 1963 Bonds on a parity of lien with the 1961 Bonds; and WHEREAS, the City Council heretofore determined that the proceeds received from the issuance and sale of said 1963 Bonds were insufficient to complete the carrying out of the system or plan of additions to and betterments and extensions of the waterworks utility of the City, as adopted by Ordinance No. 381 and by Ordinance No. 422, passed by the City Council and approved by the Mayor on the 18th day of January, 1965, issued and sold an additional $45,000.00 par value of the remaining authorized but unissued $77,000.00 par value of water and sewer revenue bonds authorized by Ordinances Nos. 381 and 382, said $45,000.00 par value of bonds having been combined with an additional authorized $40,000.00 par value of bonds, and such combined issue of bonds was issued under date of March 1, 1965, on a parity of lien with the 1961 Bonds and 1963 Bonds in the total amount of $85,000.00 par value and designated as "Water and Sewer Revenue Bonds, 1965" (hereinafter referred to as the "1965 Bonds and -3- WHEREAS, the City pursuant to Ordinance No. 619, passed June 1, 1970, issued and sold $425,000.00 par value of "Water and Sewer Revenue Bonds, 1970," to provide the funds necessary to pay the cost of carrying out the system or plan of additions to and betterments and extensions of the waterworks utility of the City specified and adopted by Ordinance No. 560, passed June 16, 1969 (hereinafter referred to as the "1970 Bonds which 1970 Bonds were issued on a parity of lien with the 1961 Bonds, 1963 Bonds and 1965 Bonds in accordance with the provisions of Section 7 of Ordinance No. 334; and WHEREAS, as provided in Ordinance No. 619 and in the 1970 Bonds, the City reserved the right to redeem such 1970 Bonds in inverse numerical order on July 1, 1985, or on any semiannual interest payment date thereafter at 103% of par plus accrued interest to date of redemption, which redemption price shall reduce 1/2 of 1% annually to par on or after July 1, 1991, and $420,000.00 par value of said 1970 Bonds are presently outstanding, being bonds numbered 2 to 85, inclusive, maturing serially from July 1, 1973, through July 1, 2000, and bearing interest at various rates ranging from 7.50% to 8.25% per annum; and WHEREAS, after due consideration it appears to the City Council that all of the outstanding 1970 Bonds may be refunded at the earliest possible date, to -wit, July 1, 1985, by the issuance and sale of refunding bonds so that a substantial savings will be effected by the difference between the principal and interest cost over the life of the refunding bonds and the principal and interest cost over the life of such outstanding 1970 Bonds; and WHEREAS, in order to effect such refunding in the manner that will be most advantageous to the City, it is hereby found necessary and advisable that certain direct obligations of the United States of America bearing interest and maturing at such time or times as necessary to meet the debt service requirements of the outstanding -4- 1970 Bonds until the same are refunded and retired and to pay the principal and interest of such outstanding 1970 Bonds on July 1, 1985, the date when such bonds are to be called for such redemption, be purchased out of the proceeds of the sale of the refunding and construction bonds herein authorized; and WHEREAS, the public health, welfare, safety and convenience require and it is advisable that certain sewer improvements be made to the waterworks utility of the City consisting of the construction and installation of a lift station and the replacement of the sanitary sewer interceptor lines in Andover Park West, the estimated cost of which is $373,000.00, and it is necessary to issue and sell $175,000.00 par value of water and sewer revenue bonds to provide a part of the funds necessary to carry out such improvements, and it is in the best interests of the City that such additional construction revenue bonds be combined with the refunding bonds to refund the outstanding 1970 Bonds and that such combined refunding and construction bonds be issued on a parity of lien with the outstanding 1961 Bonds, 1963 Bonds and 1965 Bonds; 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" for the 1961 Bonds, the 1963 Bonds, the 1965 Bonds and the 1970 Bonds have been made and have been maintained intact therein, that URS /Hill, Ingman, Chase Co., professional engineers experienced in municipal utilities and licensed to practice in the State of Washington, have certified that the proposed water and sewer revenue bonds are to be issued to finance in part 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 -5- 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 engineers' opinion, shall be 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 1961 Bonds, 1963 Bonds, 1965 Bonds and the additional bonds proposed to be issued, such certifying engineers having taken into consideration the fact that no debt service payable out of the revenue of the waterworks utility of the City will arise for the outstanding 1970 Bonds after the issuance of the refunding bonds and the maturities of the refunding bonds are not extended beyond the maturities of the bonds to be refunded thereby, 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. The City of Tukwila, Washington, hereby specifies and adopts a system or plan for making additions to and betterments and extensions of the existing waterworks utility of the City consisting of the following: 1. The City shall construct and install a lift station on an easement approximately 200 feet north of Stander Boulevard and adjacent to Andover Park West in the City of Tukwila, Washington, such lift station to be an underground reinforced concrete station capable of delivering 2,000 gallons per minute from one pump with one 2,000 gallon per minute pump used as standby. -6- 2. The City shall construct and install approximately 1200 lineal feet of 16 12" and 10" cast iron sewer pipe averaging 18 feet in depth to replace the existing sewer lines in the Andover Park West area which have become unusable due to settlement consisting of the following lines at the following locations: On From To Andover Park West Lift Station Existing 12" Sewer Line North 884 L.F. Easement Andover Park West Existing 12" Sewer Line West 138 L.F. Andover Park West From Lift Station Existing Metro Interceptor South 185 L.F. at Strander Boulevard There shall be included in the foregoing the acquisition and installation of all necessary manholes, valves, fittings, couplings, connections, equipment and appurtenances and the acquisition of any easements or rights -of -way that may be required; and there shall be included the performance of such work as may be incidental and necessary to the foregoing construction and installation. The City may modify the details of the foregoing system or plan where, in its judgment, it deems advisable; provided, such modifications do not substantially alter the purposes hereinbefore set forth. Section 2. The life of the foregoing additions, betterments and extensions is hereby declared to be at least 30 years. Section 3. The estimated cost, as near as may be, of the aforesaid system or plan of additions, betterments and extensions is hereby declared to be $373,000.00 to be met and defrayed from the following sources: 1. Moneys anticipated to be received by way of grants from the Federal and State governments in the amount of $173,000.00. 2. Moneys presently on hand and available to the City for construction purposes in the amount of $25,000.00. -7- 3. Proceeds from the issuance and sale of water and sewer revenue bonds in the amount of $175,000.00 to be combined with refunding water and sewer revenue bonds for a total combined issue of $675,000.00 of "Water and Sewer Refunding and Construction Revenue Bonds, 1972." Section 4. The gross revenues and benefits to be derived from the operation and maintenance of the waterworks utility of the City at the rates to be charged for water service and sanitary sewage disposal service on the entire utility will, in the judgment of the City Council, be more than sufficient to meet all expenses of operation and maintenance thereof and to permit the setting aside into the special bond fund hereinafter referred to out of the gross revenues of the waterworks utility of the City of sufficient amounts to pay interest on the water and sewer revenue bonds herein authorized to be issued and on all outstanding 1961 Bonds, 1963 Bonds and 1965 Bonds as such interest becomes due and payable and to pay and redeem all of said bonds at maturity, the debt service on the outstanding 1970 Bonds to be paid from the investment proceeds received from the sale of the water and sewer revenue bonds herein authorized until July 1, 1985, the date when said outstanding 1970 Bonds will be refunded, paid and retired. Section 5. For the purpose of providing the funds with which to pay a part of the cost of carrying out the system or plan for making additions to and betterments and extensions of the waterworks utility of the City as specified and adopted in Section 1 hereof and hereby ordered to be carried out and for the purpose of providing the funds with which to pay the debt service on outstanding 1970 Bonds until July 1, 1985, and to refund, pay and retire all of said outstanding 1970 Bonds on July 1, 1985, there shall be issued and sold $675,000.00 par value of "Water and Sewer Refunding and Construction Revenue Bonds, 1972" (hereinafter referred to as the "Bonds The Bonds shall be dated December 1, 1972, -8- shall bear interest at the rates hereinafter set forth, payable on June 1 and December 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 City to pay interest at the Bond rates from and after the maturity dates until the Bonds with interest are paid in full, shall be in denominations of $5,000.00 each, and shall be numbered from 1 to 135, inclusive. Both principal of and interest on the Bonds shall be payable solely out of the "Water and Sewer Revenue Bond Fund, 1961," of the City (hereinafter referred to as 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 and bear interest in accordance with the following schedule, to -wit: Bond Numbers Interest (Inclusive) Amounts Rates Maturities 1 to 2 $10,000 5.75% December 1, 1973 3 to 4 10,000 5.75% December 1, 1974 5 to 6 10,000 5.75% December 1, 1975 7 to 9 15,000 5.75% December 1, 1976 10 to 12 15,000 5.75% December 1, 1977 13 to 15 15,000 5.75% December 1, 1978 16 to 18 15,000 5.75% December 1, 1979 19 to 21 15,000 6.00% December 1, 1980 22 to 25 20,000 6.00% December 1, 1981 26 to 29 20,000 6.00% December 1, 1982 30 to 33 20,000 6.00% December 1, 1983 34 to 37 20,000 6.00% December 1, 1984 38 to 42 25,000 6.00% December 1, 1985 43 to 47 25,000 6.00% December 1, 1986 48 to 52 25,000 6.00% December 1, 1987 53 to 58 30,000 6.00% December 1, 1988 59 to 64 30,000 6.00% December 1, 1989 65 to 70 30,000 6.00% December 1, 1990 71 to 76 30,000 6.40% December 1, 1991 77 to 83 35,000 6.40% December 1, 1992 84 to 90 35,000 6.40% December 1, 1993 91 to 98 40,000 6.40% December 1, 1994 99 to 107 45,000 6.40% December 1, 1995 108 to 116 45,000 6.40% December 1, 1996 117 to 125 45,000 6.40% December 1, 1997 126 to 135 50,000 6.40% December 1, 1998 Section 6. The City of Tukwila reserves the right to redeem the Bonds as a whole, or in part in inverse numerical order, -9- from any source of revenue on December 1, 1985, or on any semiannual interest payment date thereafter at par plus accrued interest to date of redemption. 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 Foster Marshall Inc. at its principal office in Seattle, 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. In addition, such redemption notices shall also be sent to Moody's Investors Service, Inc., and Standard Poor's Corporation, at their offices in New York, New York. 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 7. The Bond Fund has heretofore been divided into two accounts, namely, a "Principal and Interest Account" and a "Reserve Account." There is hereby also created and established in the Bond Fund a third account to be known as the "1972 Refunding Bonds Account." Immediately upon receipt of payment in full for the Bonds, $480,000.00 of such principal proceeds received shall be deposited in the "1972 Refunding Bonds Account" and a sufficient amount shall be transferred from the "Principal and Interest Account" and "Reserve Account" to the "1972 Refunding Bonds Account" which, together with such $480,000.00, shall be used immediately to purchase the following described direct obligations of the United States government at the following prices plus accrued interest: Description Price Principal 10,000 Treasury Bills Due 6/30/73 9,655.88 16,000 Treasury Notes 7 -1/4% Due 5/15/74 102 -1/2 16,400.00 19,000 Treasury Notes 5 -3/4% Due 5/15/76 99 -5/8 18,928.75 20,000 Treasury Notes 6 -1/4% Due 2/15/78 100 -3/4 20,150.00 30,000 Treasury Bonds 4% Due 2/15/80 88 -1/4 26,475.00 44,000 Treasury Bonds 6 -3/8% Due 2/15/82 100 -7/8 44,385.00 $360,000 Treasury Bonds 6 -3/8% Due 8/15/84 99 -3/4 359,100.00 -10- The United States Treasury obligations to be purchased as above provided shall be registered as to principal and interest in the name of the "Treasurer of the City of Tukwila, Washington, Trustee for the Water and Sewer Revenue Bond Fund, 1961, 1972 Refunding Bonds Account." All of such United States Treasury obligations shall be held in the custody of the Treasurer for such refunding bonds account in the Bond Fund, and shall be placed in safekeeping with any bank normally used by such Treasurer for safekeeping of City securities. All the moneys received as principal of or interest on such government obligations shall be held by the Treasurer for the credit of the City for the "1972 Refunding Bonds Account" in the Bond Fund, and shall be held in trust and shall be used for the sole purpose of meeting the debt service on the outstanding 1970 Bonds (with the exception that the January 1, 1973, interest accruing on the outstanding 1970 Bonds shall be paid from moneys on deposit in the "Principal and Interest Account" in the Bond Fund) until the outstanding 1970 Bonds shall have been called, retired and paid out of such "1972 Refunding Bonds Account" on July 1, 1985. All interest on and principal of the above described government obligations received prior to the date such money is needed to meet debt service on the outstanding 1970 Bonds, until such bonds are called and retired on July 1, 1985, as provided herein, may be invested and reinvested in United States government obligations maturing prior to the date or dates such moneys will be needed for such payment. Any moneys remaining in the "1972 Refunding Bonds Account" in the Bond Fund after the payment and retirement in full of the 1970 Bonds on July 1, 1985, shall be transferred and paid into the "Principal and Interest Account" in the Bond Fund. So long as Bonds are outstanding against the Bond Fund, the Treasurer of the City shall set aside and pay into the Bond Fund -11- out of the gross revenues of the waterworks utility of the City, in addition to the amounts required to be paid into the Bond Fund for the outstanding 1961 Bonds, the outstanding 1963 Bonds and the outstanding 1965 Bonds, 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 December, 1972, 1 /12th of the next ensuing requirements for both principal and interest on the Bonds and continuing thereafter until the Bonds, both principal and interest, are paid in full; and (b) Into the "Reserve Account," monthly, beginning with the month of December, 1972, not less than the sum of $866.00 until a total reserve for the Bonds shall be accumulated therein in the amount of $83,600.00 by no later than December 1, 1977. 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, the 1963 Bonds, the 1965 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 outstanding 1961 Bonds, 1963 Bonds, 1965 Bonds, and the 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 -12- 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 the City, or may be invested in United States government obligations redeemable at a fixed price and maturing not later than August 1, 2001. 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 lien and charge upon such gross revenues for the 1961 Bonds, the 1963 Bonds, the 1965 Bonds (the 1970 Bonds until such bonds are paid and retired on July 1, 1985) and any additional water and sewer revenue bonds which may be hereafter issued on a parity of lien with the 1961 Bonds, the 1963 Bonds, the 1965 Bonds (the 1970 Bonds until such bonds are paid and retired on July 1, 1985) and the Bonds in accordance with the provisions of Section 7 of Ordinance No. 334. Section 8. 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 -13- sewage disposal service surcharge payable under any Agreement between the City and any third party, make available for the payment of the principal of and interest on such Bonds an amount equal to at least 1.35 times the average annual debt service requirements, both principal and interest, of the 1961 Bonds, the 1963 Bonds, the 1965 Bonds and the Bonds, after deducting costs of maintenance and operation from the gross revenues of the waterworks utility of the City, but before depreciation. (b) That it will at all times maintain 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 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 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, 1963 Bonds, 1965 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 outstanding 1961 Bonds, the 1963 Bonds, the 1965 Bonds and then outstanding Bonds as the revenue available for debt service for such outstanding 1961 Bonds, 1963 Bonds, 1965 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 of bears to the revenue available for debt service for such outstanding 1961 Bonds, outstanding 1963 Bonds, outstanding 1965 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, outstanding 1963 Bonds, outstanding 1965 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 -14- 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 of said utility. If, as, and when, the United States of America or some agency thereof shall provide 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. (g) That it will pay all costs of maintenance and operation of the waterworks utility of the City and the debt service requirements of the 1961 Bonds, 1963 Bonds, 1965 Bonds, 1970 Bonds prior to their redemption on July 1, 1985, and the Bonds and otherwise meet the obligations of the City as herein set forth. Section 9. The Bonds shall be in substantially the following form: No. $5,000.00 UNITED STATES OF AMERICA STATE OF WASHINGTON CITY OF TUKWILA WATER AND SEWER REFUNDING AND CONSTRUCTION REVENUE BOND, 19% KNOW ALL MEN BY THESE PRESENTS: That the City of Tukwila, Washington, for value received, hereby promises to pay to the bearer on the FIRST DAY OF DECEMBER, 19, the principal sum of FIVE THOUSAND DOLLARS together with interest thereon at the rate of PERCENT per annum, payable on the first days of June and December of each year, upon the presentation and surrender of the attached interest coupons as they severally mature up to the bond maturity date and -15- 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 "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 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, 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, amounts sufficient to pay the principal of and interest on the outstanding "Water and Sewer Revenue Bonds, 1961," the outstanding "Water and Sewer Revenue Bonds, 1963," the outstanding "Water and Sewer Revenue Bonds, 1965," and on the bonds of this issue as they respectively become due, and to accumulate a reserve, all at the times and in the manner set forth in Ordinances Nos. 334, 387, 422 and 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 lien and charge upon such gross revenues for the outstanding "Water and Sewer Revenue Bonds, 1961," issued pursuant to Ordinances Nos. 320, as amended, and 334, the outstanding "Water and Sewer Revenue Bonds, 1963," issued pursuant to Ordinances Nos. 381 and 387, the outstanding "Water and Sewer Revenue Bonds, 1965," issued pursuant to Ordinances Nos. 381 and 422 (the "Water and Sewer Revenue Bonds, 1970," issued pursuant to Ordinances Nos. 560 and 619 until such bonds are paid and retired on July 1, 1985), 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," the "Water and Sewer Revenue Bonds, 1963," the "Water and Sewer Revenue Bonds, 1965" (the "Water and Sewer Revenue Bonds, 1970," until such bonds are paid and retired on July 1, 1985), 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 $675,000.00 par value of bonds, all of like date, tenor and effect, except for interest rates and maturities, -16- all payable from the Bond Fund and all issued by the City under and pursuant to the laws of the State of Washington and Ordinance No. 74 of the City, for the purpose of providing funds to pay a part of the cost of carrying 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, adopted by Ordinance No. rf/Lc and to pay the debt service on the outstanding "Water and Sewer Revenue Bonds, 1970," until July 1, 1985, and to refund, pay and retire all of the outstanding "Water and Sewer Revenue Bonds, 1970," on July 1, 1985, all as set forth in Ordinance No. 74 The City reserves the right to redeem the bonds as a whole, or in part in inverse numerical order, from any source of revenue on December 1, 1985, or on any semiannual interest payment date thereafter at par plus accrued interest to date of redemption. 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 Foster Marshall Inc. at its principal office in Seattle, 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. In addition, such redemption notices shall also be sent to Moody's Investors Service, Inc., and Standard Poor's Corporation, at their offices in New York, New York. 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 obligations of the City, as set forth in Ordinance No. JAS', to which ordinance 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 the issuance of this bond have 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 the facsimile signature of its Mayor and attested by the manual signature of its City Clerk and its corporate seal to -17- to be hereto affixed, and the interest coupons attached to be signed with the facsimile signatures of those officials as of December 1, 1972. CITY OF TUKWILA, WASHINGTON By (facsimile signature) Mayor ATTEST: City Clerk The interest coupons attached to the Bonds shall be in substantially the following form: On the FIRST DAY OF (JUNE)(DECEMBER), 19 the CITY OF TUKWILA, WASHINGTON, will pay to bearer at the office of the City Treasurer the sum shown hereon in lawful money of the United States of America out of the special fund of the City known as the "Water and Sewer Revenue Bond Fund, 1961," that sum being six months' interest then due on its "Water and Sewer Refunding and Construction Revenue Bond, 1972," dated December 1, 1972, and numbered CITY OF TUKWILA, WASHINGTON By (facsimile signature) Mayor ATTEST: (facsimile signature) City Clerk The Bonds shall be printed on lithographed forms, shall be signed by the facsimile signature of the Mayor and attested by the manual signature of the City Clerk, and shall have the seal of the City affixed thereto, and the interest coupons shall bear the facsimile signatures of the Mayor and City Clerk. Section 10. The City reserves the right to issue additional or refunding water and sewer revenue bonds, which shall constitute a lien and charge upon the gross revenues of the waterworks utility of the City, on a parity of lien with the 1961 Bonds, the 1963 Bonds, the 1965 Bonds (the 1970 Bonds prior to their redemption on July 1, 1985) 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 -18- section is incorporated in this ordinance and by this reference made a part hereof. Section 11. The City Clerk is hereby authorized and directed to cause to 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 days nor more than forty-five days prior to July 1, 1985, a notice of call for redemption of all 1970 Bonds outstanding on such call date and to mail a copy of such notice of redemption to McLean Company, Inc., at its principal office in Tacoma, Washington, or its successor, within the same period as provided in Ordinance No. 619 and in the outstanding 1970 Bonds, and the City Treasurer is hereby authorized and directed to pay and redeem all 1970 Bonds outstanding on July 1, 1985, at 103% of the par value thereof plus accrued interest to date of such redemption. Section 12. Foster Marshall Inc. of Seattle, Washington, heretofore offered to purchase the Bonds at a price of $98.00 per each $100.00 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 being of the opinion that it was in the best interest of the City to accept such offer duly accepted the same on November 6, 1972, and such acceptance is hereby ratified and confirmed. The Bonds shall, therefore, immediately upon their execution be delivered to the purchaser upon payment for the Bonds in accordance with its offer. The accrued interest received shall be deposited in the "Principal and Interest Account" in the Bond Fund, and $480,000.00 of the principal proceeds received shall be deposited in the "1972 Refunding Bonds Account" and the balance of the principal proceeds received shall be deposited in the "Water -19- and Sewer Construction Fund, 1963," created by Ordinance No. 387 of the City. In addition to the $480,000.00 of such principal proceeds to be deposited in the "1972 Refunding Bonds Account," there shall be transferred from the "Principal and Interest Account" and "Reserve Account" in the Bond Fund such amount as, together with such $480,000.00, will be sufficient to purchase the United States Treasury obligations referred to above, together with accrued interest thereon. The moneys in the "Water and Sewer Construction Fund, 1963," shall be used to pay all costs of the refunding operation, including all costs associated with the issuance and sale of the Bonds, and the balance of the moneys in said "Water and Sewer Construction Fund, 1963," shall be used, together with the grant moneys and other moneys available, to carry out the system or plan for making additions, betterments and extensions of the waterworks utility of the City specified and adopted in Section 1 hereof and herein ordered to be carried out. PASSED by the City Council of the City of Tukwila, Washington, at a regular open public meeting thereof, and APPROVED by the Mayor this 20th day of November, 1972. CITY OF TUKWILA, WASHINGTON BY /C_41 ,r\` Mayor ATTEST: 72 2 Z(/ City Clerk/ FORM APPROVED: City Attorney Pibl fished o ///f////7.6 limes /A -20-