HomeMy WebLinkAbout1269CITY OF KENT, WASHINGTON
ORDINANCE NO. r 2 6 9
AN ORDINANCE specifying and adopting a
system or plan of additions to and betterments
and extensions of the water supply and dis-
tribution system of the City of Kent, Washington;
declaring the estimated cost thereof as near as
may be; providing for the issuance and sale of
$1 , 2 10 , 000.00 par value of Water Revenue
Bonds , 1964, " for the purpose of obtaining
funds to pay the cost of carrying out the system
or plan for making additions to and betterments
and extensions of the existing water supply
and distribution system of the City, and for
the purpose of paying the cost of excess water
pipe capacity in Local Improvement Districts
Nos. 245 and 246 heretofore created; fixing
the form, date, maturities , interest rates ,
covenants and terms of the "Water Revenue
Bonds , 1964; providing for the sale thereof to
McLean & Company, Inc. , Tacoma, Washington;
and ratifying and confirming the action of the
City officials in awarding a construction con-
tract to carry out said system or plan of addi-
tions and betterments.
WHEREAS, the City has heretofore issued under date of May 1,
1963, pursuant to Ordinance No. 1178 its "Water Revenue Bonds, 1963,
Issue No. 1 , " in the principal amount of $327, 000.00 for the purpose
of refunding the then outstanding "Water Revenue Bonds, 1959 , " of the
City; and
WHEREAS, pursuant to the provisions of Section 9 of said
Ordinance No. 1178 the City covenanted and agreed that it would not issue
any Parity Revenue Bonds (as herein defined) unless it should first satisfy
the following conditions:
"(a) At the time of the issuance of such Parity Revenue Bonds
there shall be no deficiency in either the Principal and Interest Account or
Reserve Account of the Bond Fund.
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" (b) The City shall have covenanted in each ordinance authorizing
the issuance of Parity Revenue Bonds that it will establish, maintain and collect rates
and charges for water (and for sanitary sewage disposal service in the event that the
sanitary sewerage system of the City ever becomes a part of the Water System)
for as long as any of the Bonds and any Parity Revenue Bonds are outstanding
as will make avaiable for payment of the principal of and interest on
all of such bonds, as the same shall become due, an amount equal to at
least 1.35 times the average annual amount required for the payment
of all such principal and interest, exclusive of the principal requirements
in any Term Bond Year, after necessary costs of maintenance and operation
of the Water System shall have been paid, but before depreciation.
" (c) The City shall have covenanted in each ordinance
authorizing the issuance of Parity Revenue Bonds that it will pay into the
Reserve Account of the Bond Fund within five years of the date of issuance
of such Parity Revenue Bonds an amount which, with the money in the
Reserve Account, will be at least equal to the next year's debt service
on all outstanding bonds, the principal of and interest on which are
payable out of the Bond Fund, and will further provide in each such
ordinance for additional payments to be made into the Reserve Account
if necessary so that there shall be on deposit therein at all times after
each of those five year periods an amount at least equal to the next
succeeding year's debt service on all bonds payable out of the Bond
Fund. To satisfy the Reserve Account requirement, the whole or any
part of the money in any other reserve fund or account of the City created
to secure the payment of the principal of or interest on any revenue bonds
or revenue coupon warrants being refunded by such Parity Revenue Bonds
may be transferred to the Reserve Account at the time such outstanding bonds
or warrants are redeemed.
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"(d) At the time of the issuance of such Parity Revenue
Bonds, except the "Water Revenue Bonds, 1963, Issue No. 2, " the
City shall have on file a certificate from an independent licensed pro-
fessional engineer showing that in his professional opinion the net
revenue of the Water System which will be available in each succeeding
year for the payment of the principal of and interest on the Bonds, any Parity
Revenue Bonds then outstanding, and the Parity Revenue Bonds to be
issued as all of the same shall become due (except for those Bonds
or any then outstanding Parity Revenue Bonds that are to be refunded
by the Parity Revenue Bonds to be issued) will equal at least 1 .35 times the
average annual amount required for the payment of the principal of and
interest on all such bonds, exclusive of the principal requirement in any
Term Bond Year.
"For the purpose of the engineer's certificate, the words
"net revenue of the Water System which will be available . . . for the
payment of the principal of and interest on all of such bonds" shall mean
the gross operating revenues and receipts of the Water System after du -
ducting therefrom all necessary expenses of maintenance and operation
thereof, but before depreciation and annual debt service on any outstanding
revenue bonds or revenue coupon warrants that may have a lien on the
gross revenue of the Water System junior and inferior to the lien thereon
for the payment of the principal of and interest on the Bonds . The net
revenue may be based on any increase in revenues to be derived by an
increase in water rates and charges (and any charges for sanitary sewage
disposal service should the sanitary sewerage system of the City ever be
combined with the Water System) authorized by the City Council to be
effective by the time delivery of such Parity Revenue Bonds is made; and
WHEREAS, pursuant to Ordinance No. 1179 the City heretofore
issued under date of May 1, 1963, its "Water Revenue Bonds, 1963, Issue No. 2, "
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in the principal sum of $1 , 000, 000. 00 for the purpose of obtaining funds to
pay the cost of carrying out a system or plan of additions to and betterments
and extensions of the water supply and distribution system of the City, and for
the purpose of refunding all outstanding "Water Revenue Bonds, 1948'" "Water
Revenue Bonds, 1957," and "Water Revenue Bonds, 195 8 , "which bonds, pursuant
to the provisions of Section 9 of Ordinance No. 1179, were issued on a parity of
lien with the "Water Revenue Bonds, 1963, Issue No. 1"; and
WHEREAS, pursuant to Ordinance No. 1254, passed July 6,
1964, the City duly created "Local Improvement District No. 245" for the
purpose of constructing and installing certain water mains in the Horseshoe
Acre Tracts within the City, the pipe lines to be constructed being of a
10 inch diameter with the equivalent cost of an 8 inch diameter pipe line
to be assessed against the property specially benefited thereby and included
in such local improvement district and the City to pay the cost of the excess
capacity for the general benefit of the City; and
WHEREAS, pursuant to Ordinance No. 1259, passed August 3,
1964, the City duly created "Local Improvement District No. 246" for the
purpose of constructing and installing certain water mains, commonly known
as the North Water System, of which two of such water mains are to be of
16 inch pipe diameter and the equivalent cost of a 12 inch diameter pipe
line to be assessed against the property specially benefited thereby and
included in such local improvement district and the City to pay the cost of the
excess capacity for the general benefit of the City; and
WHEREAS, the City desires to adopt a system or plan of
additions to and betterments and extensions of the water supply and dis-
tribution system of the City which shall be paid for out of the proceeds
of the sale of water revenue bonds hereinafter authorized to be issued; and
WHEREAS, the City Council hereby finds that no deficiency
exists in either the Principal and Interest Account or the Reserve Account
of the "Water Revenue Bond Redemption Fund, 1963, " created by Ordinance
i> "7S
No. +2-7.8 and referred to as the "Bond Fund"; that provision is hereinafter
made for the required coverage covenant; that provision is hereinafter made
for the accumulation of the required additional amount in the Reserve Account
In the Bond Fund; and that William J. Chase of Hill & Ingman, an independent
licensed professional engineer, has certified that the net revenues of the
water system will be sufficient to meet the 1.35 coverage requirement above
set forth as evidenced by his certificate to such effect on file with the
City Clerk, NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF KENT, 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 "Water Revenue Bonds , 1964 , "
authorized to be issued by this Ordinance.
(b) "Bond Fund" shall mean the "Water Revenue Bond Redemption
Fund, 1963, " created by Ordinance No. 1178, adopted April 1, 1963.
(c) "1963 Bonds, Issue No. 1" shall mean the "Water
Revenue Bonds , 1963, Issue No. 1 , " authorized to be issued by Ordinance
No. 1178, passed April 1, 1963.
(d) "1963 Bonds, Issue No. 2" shall mean the "Water
Revenue Bonds, 1963, Issue No. 2, " authorized to be issued by Ordinance
No. 1179, passed April 1, 1963.
(e) "Parity Revenue Bonds," shall mean any revenue bonds
of the City hereafter issued in accordance with the provisions of Section
9 of Ordinance No. 1178, where the City has pledged to pay the principal
of and interest on such bonds out of the gross revenue of the Water System
on a parity with the payments required by Ordinance No. 1178 to be made
out of those revenues for the 1963 Bonds , Issue No. 1 and by Ordinance No.
1179 for the 1963 Bonds, Issue No. 2.
(f) "Term Bond Year" shall mean any calendar year or years
in which the 1963 Bonds, Issue No. 1, 1963 Bonds, Issue No. 2, the Bonds,
or any Parity Revenue Bonds of any one issue or series mature (regardless
of reservation of prior redemption rights) in an amount which is more than
1 . 25 times the average annual maturities of the outstanding bonds of that
issue or series for three calendar years immediately preceding such calendar
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year or years.
(g) "Water System" shall mean the existing water supply and
distribution system of the City as the same may be added to, improved and
extended pursuant to this Ordinance and at any time hereafter for as long
as the 1963 Bonds, Issue No. 1, 1963 Bonds, Issue No. 2, the Bonds and
any Parity Revenue Bonds are outstanding, and which additions, improvements
and extensions shall include the sanitary sewerage system of the City,
should it ever be combined with the water supply and distribution system
in the manner authorized by law.
Section 2. It is hereby found and declared that the pubiic
health, welfare and convenience require that a new Clark Springs Supply
Main and improvements to the East Hill Water System be provided as herein-
after set forth.
Section 3. The gross revenues and benefits to be derived
from the operation and maintenance of the Water System at the rates to be
charged for water on the entire system will, in the judgment of the City
Council, be more than sufficient to meet the costs of operation and maintenance
thereof and to permit the setting aside into the Bond Fund out of the gross
revenues of the Water System of sufficient amounts to pay the interest on
the Bonds herein authorized to be issued and on the presently outstanding
1963 Bonds, Issue No. 1 and 1963 Bonds, Issue No. 2, as such interest
becomes due and payable and to pay and redeem all of said bonds at
maturity.
Section 4. The City of Kent, Washington, specifies and adopts
a system or plan for making additions to and betterments and extensions
of the existing Water System, which shall consist of the following:
Approx .
Size
21"
21"
(1) There shall be constructed and installed the
following water mains of the following approximate sizes
in the following location (commonly known as the Clark
Springs Supply Main):
Easement NEI/4 of SWI/4 of Sec. 33, S.S.H. No. 516 (Kent
T. 22 N., R. 6 E.W.M. Kangley Road)
S.S.H. No . 516 204th Avenue S.E.
Kent-Kangley Rd.)
114th Avenue S.E.
Approx.
Size
18" S.S.H. No. 516 114th Avenue S.E.
(Kent-Kangley Rd.)
18" Easement S.S.H. No . 516 (Kent-
Kangley Road)
1811 S.E. 248th St. 100th Avenue S. E.
18" 98th Avenue S.E. S.E. 248th St.
18" Easement 98th Avenue S . E .
10" 114th Ave. S.E. S.S.H. No. 516 (Kent
-
Kangley Road)
8" Easement 114th Avenue S.E.
Approx. 700' west of
S.S.H. No . 515 (Benson
Road)
S.E. 248th St.
98th Avenue S.E.
Approx. 400' North of
S.E. 240th St.
Approx. 400' west of
98th Ave. S.E.
Approx. 1550' south
of S.S.H. No . 516 (Kent-
Kangley Road)
Approx. 150' west of
114th Avenue S.E.
8" S.S.H. No. 516 108th Avenue S.E.
(Kent-Kangley Rd.)
S.E. 25 6th St .
(2) The water system in the East Hill Area
from approximately 104th Avenue S.E. to 116th Ave.
S.E. and from S.E. 2 24th Street to S.E. 264th St.
shall be improved by the acquisition of sites for
water storage and pumping facilities and the con-
struction of water storage, pumping and main
facilities .
There shall be included in the foregoing construction and
installation all necessary valves , fittings , couplings , connections,
equipment and appurtenances and the acquisition of any easements , rights-
of-way, water rights, and land 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 abovedescribed additions to and betterments and
extensions of the Water System shall be connected to the existing Water
System wherever necessary with the installation of all necessary appurtenances
therefor.
The City Council may modify the details of the foregoing
system or plan where in its judgment it appears advisable if such modifications
do not substantially alter the purposes herein set forth.
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Section S. The life of the additions , betterments and extensions
set forth in Section 4 of this Ordinance is declared to be at least thirty years.
Section 6. The estimated cost of the acquisition, construction
and installation of the additions , betterments and extensions set forth in
Section 4 of this Ordinance is fixed as nearly as may be at the sum of
$1,128,000.00.
Section 7. For the purpose of providing the funds necessary
to pay the cost of acquiring, constructing and installing the additions,
betterments and extensions described in Section 4 of this Ordinance and
to pay the excess capacity costs of the water mains in Local Improvement
Districts Nos. 245 and 246 there shall be issued and sold $1,210,000.00
par value of Bonds. The Bonds shall be in denominations of $1 , 000.00
each; shall be numbered from 1 to 1210, inclusive; shall be dated November 1 ,
1964; shall bear interest payable semiannually on June 1 and December 1
of each year, with the first interest coupon being payable on June 1, 1965,
covering the seven month period from November 1, 1964,to May 31, 1965,
interest to maturity to be evidenced by coupons to be attached to the Bonds
with full obligation on the part of the City to pay interest at the same rate
or rates from and after the Bond maturity dates until the Bonds with interest
are paid in full. Both principal of and interest on the Bonds shall be paid in
lawful money of the United States of America at the office of the City
Treasurer of Kent, Washington, solely out of the Bond Fund.
The bonds shall mature and bear interest in accordance
with the following schedule, to -wit:
Bond Numbers
Interest
(Inclusive)
Amounts
Rate s
Maturitie s
1 to
15
$
15,000
3
1/4%
December
1 ,
1966
16 to
30
$
15,000
3
1/4%
December
1,
1967
31 to
50
$
20,000
3
1/4%
December
1 ,
1968
51 to
70
$
20,000-
3
1/4%
December
1 ,
1969
71 to
90
$
20,000
3
1/2%
December
1 ,
1970
91 to
110
$
20,000
3
1/2%
December
1 ,
1971
111 to
130
$
20,000
3
1/2%
December
1 ,
1972
131 to
150
$
20,000
3
1/2%
December
1 ,
1973
151 to
170
$
20, OOCL
3
1/2%
December
1,
1974
171
to
190
$ 20,000
3 3/4%
December
1 ,
1975
191
to
215
$ 25,000
3 3/4%
December
1,
1976
216
to
240
$ 25,000
3 3/4%
December
1 ,
1977
241
to
265
$ 25,000
3 3/4%
December
1,
1978
266
to
290
$ 25,000
3 3/4%
December
1 ,
1979
291
to
315
$ 25,000
3.90 %
December
1 ,
1980
316
to
340
$ 25 , 00,0
3.90 %
December
1 ,
1981
341
to
370
$ 30,000
3.90 %
December
1 ,
1982
371
to
400
$ 30,000
3.90 %
December
1 ,
1983
401
to
430
$ 30,000
3.90 %
December
1,
1984
431
to
460
$ 30 , 000
3.90 %
December
1 ,
1985
461
to
495
$ 35,000
4 %
December
1 ,
1986
496
to
530
$ 35,000
4 %
December
1 ,
1987
531
to
565
$ 35,000
4 %
December
1 ,
1988
566
to
605
$ 40,000
4 %
December
1,
1989
606
to
695
$ 90,000
4 %
December
1,
1990
696
to
815
$120,000
4 %
December
1 ,
1991
816
to
940
$125,000
4 %
December
1 ,
1992
941
to
1070
$130,000
4 %
December
1 ,
1993
1071
to
1210
$140,000
4 %
December
1,
1994
Section 8. The City
of Kent reserves the right to redeem the
Bonds as a whole, or in part in inverse numerical order, on December 1, 1974,
or on any subsequent interest payment date at the following redemption prices,
if redeemed on the following dates , plus accrued interest to date of redemption
in each case, to -wit:
December 1, 1974, or June 1, 1975, at $102.50 per
each $100 par value thereof,
December 1, 1975, or June 1, 1976, at $102.00 per
each $100 par value thereof,
December 1, 1976, or June 1, 1977, at $101.50 per
each $100 par value thereof,
December 1, 1977, or June 1, 1978, at $101-00 per
each $100 par value thereof,
December 1, 1978, or June 1, 1979, at $100.50 per
each $100 par value thereof,
December 1, 1979, and thereafter, at par.
Notice of any call for redemption of any of the Bonds prior to
their stated maturity dates shall be published at least once in the official
newspaper of the City not less than thirty nor more than forty-five days
prior to the call date. Notice of said intended redemption shall also be
mailed to McLean & Company, Inc. , at its principal place of business in
Tacoma, Washington, or its successor, 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 9. The Bond Fund has, by Ordinance No. 1178,
been divided into a Principal and Interest Account and a Reserve Account.
So long as any of the Bonds is outstanding against the Bond Fund, the
City Treasurer of the City of Kent shall set aside and pay into the Principal and
Interest Account of the Bond Fund,in addition to the amounts covenanted to be
paid therein by Ordinance No. 1178 for the 1963 Bonds, Issue No. 1 and
by Ordinance No. 1179 for the 1963 Bonds, Issue No. 2, out of the gross
revenues of the Water System a fixed amount without regard to any fixed
proportion, on or before the twentieth day of each month, as follows:
(a) An amount equal to at least 1/6th of the interest
to become due and payable on the next interest payment date on all of
the Bonds outstanding, except that from November, 1964, through May,
1965, inclusive, the amount shall be equal to at least 1/7th of the interest
to become due and payable on June 1, 1965.
(b) Commencing with the month of November, 1965, an amount
equal to at least 1/12th of the amount due on the next principal payment date.
Section 10. The City shall pay into the Reserve Account of
the Bond Fund, inaddition to the amounts required to be paid therein by
Ordinance No. 1178 for the 1963 Bonds, Issue No. 1, and by Ordinance No.
1179 for the 1963 Bonds, Issue No. 2, by no later than Nowrriar 1 , 1969,
an amount which will be at least equal to the next year's debt service on
all outstanding bonds, to -wit, $143 , 000.00 , and will maintain that Reserve
Account so that there will be on deposit within that account at all times ,
except for withdrawals thereform as authorized herein, an amount at least
equal to the next succeeding year's debt service on the Bonds, the outstanding
1963 Bonds, Issue No. 1, 1963 Bonds, Issue No. 2, and any Parity Revenue
Bonds hereafter issued.
In addition to using the gross revenues therefor, the Reserve
Account may be accumulated from any moneys which the City of Kent may have
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available for such purpose.
The City further agrees that when the required amounts
have been paid into the Reserve Account, it will at all times, except for
withdrawals therefrom as authorized herein, maintain those amounts
therein until there is a sufficient amount in the Principal and Interest
Account and the Reserve Account to pay the principal of, call premium, if
any, and interest on all bonds payable out of the Bond Fund outstanding,
at which time the money in the Reserve Account may be used to pay such
principal, call premium, if any, and interest.
In the evert that there shall be a deficiency in the Prin-
cipal and Interest Account to meet maturing installments of either principal
or interest, as the case may be, on any bonds payable out of the Bond Fund,
such deficiency shall be made up from the Reserve Account by withdrawal
of cash therefrom for that purpose. Any deficiency created in the Reserve
Account by reason of any such withdrawals shall then be made up from the
moneys from the revenues of the Water System first available after making
necessary provisions for the required payments into the Principal and Interest
Account.
All moneys in the Reserve Account may be kept on deposit
in the official bank depository of the City of Kent, or may be invested in
direct obligations of the United States Government, having a guaranteed
redemption price prior to maturity or maturing not later than twelve years
from the day of purchase, and, in no event, maturing later than the last
maturity of any bonds payable out of the Bond Fund outstanding at the time
of such purchase. Interest earned on any such investment or on such
bank deposit shall be deposited and become 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.
Section 11. The gross revenues from the Water System
of the City are pledged to such payments as are required by this Ordinance ,
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and the bonds shall constitute a charge or lien upon such revenues prior
and superior to any other charge whatsoever, excluding charges for maintenance
and operation, except that the charge or lien upon such gross revenues
for the bonds shall be on a parity with the charge or lien upon such
gross revenues for the 1963 Bonds, Issue No. 1, 1963 Bonds, Issue No.
2, and for any Parity Revenue Bonds.
Section 12. The City of Kent covenants and agrees with
the owner and holder of each bond at any time outstanding, as follows:
(a) It will establish, maintain and
collect such rates and charges for water ser-
vice (and for sanitary sewage disposal service
should the sanitary sewage system of the City
ever be combined with the Water System) so
long as any of the Bonds , any 1963 Bonds ,
Issue No. 1, 1963 Bonds, Issue No. 2, and
any Parity Revenue Bonds, are outstanding,
as will make available for the payment of the
principal of and interest on all such bonds
as the same shall become due, an amount
equal to at least 1.35 times the average
annual amount required for the payment of all
principal of and interest on such bonds , ex-
clusive of the principal requirement in any
Term Bond Year, after necessary costs of mainten-
ance and operation of the Water System shall
have been paid, but before depreciation.
(b) It will at all times maintain and
keep the Water System and all additions thereto
and betterments, replacements and extensions
thereof in good repair, working order and condi-
tion and also will at all times operate the Water
System and the business in connection therewith
in an efficient manner and at a reasonable cost.
(c) It will not sell, lease, mortgage, or in
any manner encumber or dispose of all of the pro-
perty of the Water System unless provision is made
for payment into the Bond Fund of a sum sufficient
to pay the principal of and interest on all Bonds
and Parity Revenue Bonds at that time outstanding,
and it will not sell, lease, mortgage, or in any
manner encumber or dispose of any part of the
property of the Water System 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
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outstanding bonds payable from the Bond Fund as the
r evenue available for debt service for those
outstanding bonds for the twelve months pre-
ceding such sale, lease, mortgage, encumbrance,
or disposal from the portion of the Water System
sold, leased, mortgaged, encumbered, or disposed
of bears to the revenue available for debt service
for such bonds from the entire Water System for
the same period. Any money so paid into the Bond
Fund shall be used to retire such outstanding
bonds at the earliest possible date.
(d) 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
Water System and it will furnish the original pur-
chaser 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
statements of the Water System in reasonable
detail covering any calendar year not more than
ninety days after the close of such calendar year.
It will grant any holder or holders of at least
twenty-five percent of the outstanding Bonds
the right at all reasonable times to inspect the
Water System and all records, accounts and data
of the City relating thereto. Upon the request
of any holder of any of the Bonds , it will furnish
such holder a copy of the most recently completed
audit of the City accounts by the State Auditor of
Washington.
(e) It will not furnish any water, (or any
sanitary sewage disposal service should the sanitary
sewerage system ever be combined with the Water
System) to any customer whatsoever free of charge,
and it will promptly take legal action to enforce the
collection of all deiinquent accounts.
(f) It will carry the types of insurance on its
Water System properties in the amounts normally
carried by private water companies engaged in the
operation of Water Systems , and the cost of such
insurance shall be considered a part of operating
and maintaining the Water System. If, as, and
when the United States of America o r some agency
thereof shall provide for war risk insurance, the
City further agrees to take out and maintain such
insurance on all or such portions of the Water
System on which such war risk insurance may be
written in an amount or amounts to cover adequately
the value thereof.
(g) It will pay all costs of maintenance and
operation of the Water System and the debt service
requirements for the outstanding Bonds, 1963 Bonds,
Issue No. 1, 1963 Bonds, Issue No. 2, and Parity
Revenue Bonds, and otherwise meet the obligations
of the City, as herein set forth.
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Section 13. The City of Kent covenants and agrees
with the holder or holders of each Bond at any time outstanding that it
will not issue any Parity Revenue Bonds unless it shall first satisfy the
conditions set forth for the issuance of such Parity Revenue Bonds in
Section 9 of Ordinance No. 1178, which section is by this reference
incorporated herein and made a part hereof and shall be applicable so
long as any Bonds are outstanding .
Nothing contained in this Section 12 shall prevent the City
from issuing revenue bonds or warrants , the payment of the principal
of and interest on which is a charge upon the gross revenue of the Water
System junior and inferior to the payments required to be made out of that
gross revenue into the Bond Fund.
form:
Section 14. The Bond shall be in substantially the following
No. $1,000.00
UNITED STATES OF AMERICA
STATE OF WASHINGTON
CITY OF KENT
WATER REVENUE BOND, 1964
KNOW ALL MEN BY THESE PRESENTS: That
the City of Kent, a municipal corporation of the
State of Washington, for value received promises
to pay to bearer on the FIRST DAY OF DECEMBER,
19 ,
ONE THOUSAND DOLLARS
together with interest thereon at the rate of
PERCENT
( %) per annum, payable on June 1,
1965, and semiannually thereafter on the
first days of June and December of each year
upon the presentation and surrender of the at-
tached interest coupons as they severally
mature up to the bond maturity date and with full
obligation on the part of the City to pay interest
at the same rate from and after the bond maturity
date until this bond, with interest, is paid in full.
Both principal and interest are payable in lawful
money of the United States of America at the
office of the City Treasurer of Kent, Wash-
ington, solely out of the special fund of the
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City known as the Water Revenue Bond Redemption
Fund, 1963," created by Ordinance No. 1178 of
the City, and hereinafter called the "Bond Fund. "
This bond is one of a total issue of $1 , 210 , 000.00
par value of bonds, all of like date , tenor and
effect, except as to maturities and interest rates ,
all payable from the Bond Fund and all issued by
the City of Kent under and pursuant to the laws
of the State of Washington and Ordinance No.
of the City for the purpose of paying the cost
of acquisition, construction and installation
of certain additions to and betterments and ex-
tensions of the water supply and distribution
system of the City and to pay the excess capacity costs of
water mains in Local Improvement Districts Nos.
245 and 246. Reference is made to that Ordinance
as more fully describing the covenants with and
rights of the bonds of this issue.
The City of Kent reserves the right to redeem
the bonds of this issue, as a whole, or in part
in inverse numerical order, on December 1, 1974,
or on any subsequent interest payment date at the
following redemption prices, if redeemed on the
following dates, plus accrued interest to date of
redemption in each case, to -wit:
December 1, 1974, or June 1, 1975, at $102.50
per each $100 par value thereof,
December 1, 1975, or June 1 , 1976 , at $102.00
per each $100 par value thereof,
December 1, 1976, or June 1 , 1977 , at $101 .50
per each $100 par value thereof,
December 1, 1977, or June 1 , 1978 , at $101 .00
per each $100 par value thereof ,
December 1, 1978, or June 1 , 1979 , at $100.50
per each $100 par value thereof,
December 1, 1979, and thereafter, at par.
Notice of any call for redemption of any of the
bonds of this issue prior to their stated maturity
dates shall be published at least once in the official
newspaper of the City not less than thirty nor more
than forty-five days prior to the call date. Notice
of said intended redemption shall also be mailed
to McLean & Company, Inc. , at its principal place
of business in Tacoma, Washington, or its successor,
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.
The bonds of this issue constitute a lien and
charge upon the gross revenues of the water supply
and distribution system of the City prior and
superior to any other charges whatsoever, ex-
cluding charges for maintenance and operation of
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the water system, except that the lien and charge
upon such gross revenues for the bonds of this
issue shall be on a parity with the lien and charge
upon such gross revenues for the outstanding
"Water Revenue Bonds, 1963, Issue No. 1 , "
"Water Revenue Bonds, 1963, Issue No. 2, "
and any additional and/or refunding bonds of the
City hereafter issued on a parity of lien with said
bonds in accordance with the provision of Section
9 of Ordinance No. 1178 and Section 12 of Ordinance
No. 1179.
The City of Kent has covenanted to establish,
maintain and collect such rates and charges for
water (and for sanitary sewage disposal service
should the sanitary sewerage system of the City
ever be combined with the water supply and dis-
tribution system of the City) for so long as any
bonds of this issue, any "Water Revenue Bonds,
1963, Issue No. 1, " "Water Revenue Bonds, 1963,
Issue No. 2, " and any revenue bonds which may
hereafter be issued on a parity therewith are out-
standing, as will make available for the payment
of the principal of and interest on such outstanding
bonds as the same shall become due, an amount
equal to at least 1.35 times the average annual
amount required (exclusive of the principal re-
quirement in any "Term Bond Year" as such words
are defined in Ordinance No. 1179) for the pay-
ment of all such principal and interest, after
necessary costs of maintenance and operation of
such system have been paid, but before depreciation.
The City has further covenanted and agreed to
maintain in good condition and to operate the
water distribution and supply system and all
additions thereto and betterments, replacements
and extensions thereof and to establish, main-
tain and collect such rates for water as will
produce such gross revenues from the water
system sufficient to permit payment into the Bond
Fund of the amounts required for payment of
principal of and interest on all bonds payable
out of the Bond Fund as the same shall become
due and the amounts required to be paid into the
"Reserve Account" in the Bond Fund, and in addi-
tion thereto to pay all costs of maintenance and
operation and the debt service requirements of
all outstanding revenue bonds , and otherwise
to meet the obligations of the City as herein
set forth.
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 Ordin-
ances of the City of Kent, and all acts , conditions
M1112
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 Kent, Wash-
ington, 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 first day of November,
1964.
CITY OF KENT,:: W ING�(ON
Mayor
ATTEST,
City Clerk
The interest coupons attached to the Bonds shall be in
substantially the following form:
Coupon No.
N
On the first day of (June) (December) , 19 ,
the CITY OF KENT, WASHINGTON, upon presenta-
tion and surrender of this coupon, will pay to the
bearer at the office of the City Treasurer, the
sum of
DOLLARS ($ ) in lawful money of the
United States of America from the special fund
of the City known as the "Water Revenue Bond
Redemption Fund, 1964," that sum being six
months' (seven months' on Coupon No. 1) interest
then due on its "Water Revenue Bond, 1964, "
dated November 1, 1964, and numbered
� A'
ST:
City Clerk
CITY OF KENfi;—WASHINGTON
May
The bonds shall be printed on lithographed forms, shall be
signed by the Mayor and attested by the Clerk and shall have the seal of the
City of Kent affixed thereto. The coupons shall bear the facsimile signatures
of the Mayor and the Clerk.
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Section 15 . McLean & Company, Inc. , of Tacoma,
Washington, has offered to purchase the Bonds at a price of $97.00 per
each $100.00 principal thereof, plus accrued interest from the date of
issuance to the date of delivery of the Bonds, the City to furnish at its
expense the Bonds, together with the approving legal opinion of Messrs.
Roberts, Shefelman, Lawrence, Gay & Moch, municipal bond counsel of
Seattle, Washington. The City Council, deeming that no better offer can
be received for the Bonds , and that it is in the best interests of the City
to accept that offer, hereby accepts the same. The Bonds shall, therefore ,
immediately upon their execution be delivered to McLean & Company, Inc. ,
upon payment therefor in accordance with that offer. The accrued interest
received shall be deposited in the Principal and Interest Account of the
Bond Fund, and the principal proceeds shall be deposited in the "Water
Construction Fund" of the City.
Section 16. That the action of the City officials in heretofore
advertising for construction bids and awarding the construction contract
for the improvements described in Section 4 to Frank Coluccio Construction
Co. is hereby ratified and confirmed as a duly authorized act of the City.
Section 17. This Ordinance is declared to be one necessary
for the immediate preservation of the public peace, property, health and
safety of the people of the City of Kent, Washington. An emergency is
hereby declared to exist, and this Ordinance is hereby declared to be in
full force and effect from and after its passage, approval and publication,
as provided by law.
PASSED by the City Council of the City of Kent, Washington,
and APPROVED by its Mayor, at a regular meeting held on the 5th day of
October, 1964.
ATTEST: Mayor
77 -- City Clerk
FORM APPROVED:
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City Attorney
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