HomeMy WebLinkAbout1300CITY OF KENT, WASHINGTON
ORDINANCE NO. ADO
AN ORDINANCE specifying and adopting a
system or plan of additions to and betterments
and extensions of the water supply cind distri-
bution system of the City of Kent, Washington;
declaring the estimated cost thereof as near as
may be; providing for the issuance and sale of
not to exceed $35 , 000.00 par value of water
revenue bonds for the purpose of obtaining funds
to pay the cost of carrying out such system or
plan; creating a special acquisition fund; rati-
fying and confirming the action of the City
officials in entering into an Agreement and Bill
of Sale dated as of May 3, 1965 pertaining to
the acquisition of the Derbyshire Water System;
and providing for the issuance and sale of
interest-bearing warrants pending the sale of
the water revenue bonds.
THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON,
DO ORDAIN, as follows:
Section 1. It is hereby found and declared that the public
health and welfare require, and it is in the best interests of the inhabitants
of the City of Kent, that the City acquire the private water system commonly
known as the Derbyshire Water System presently furnishing water to residential
users within the various plats of Derbyshire, and the City of Kent, therefore,
hereby specifies and adopts a system or plan for making additions to and
betterments and extensions of the existing water system of the City which
shall consist of the acquisition and purchase from Derbyshire, Inc. , a Wash-
ington corporation, of that certain private water system, including all water
transmission lines, water meters, pipes, valves, fire hydrants and miscella-
neous equipment presently utilized by Derbyshire, Inc. , as the sole owner
and operator of said system, located in an area bordered by 124th Avenue
S. E. on the east, 116th Avenue S. E. on the west, S. E. 272nd on the north
and S. E. 276th on the south, in the City of Kent, Washington, for the purpose
of selling water to residential users in the following plats: Derbyshire,
Derbyshire #1, Derbyshire #2, Derbyshire #3, Derbyshire #4, Derbyshire #5
and Derbyshire #6, pursuant to plats recorded in the records of the King County
Auditor, State of Washington, except that such purchase and acquisition shall
not include that certain reservoir or equipment, parts and accessories located
at 27263 -124th Avenue S. E. , in the City of Kent, Washington, that is con-
nected to a four -inch master meter which is included as a part of such purchase
and acquisition. There shall be included in such purchase and acquisition the
conveyance by the seller of all easements and all rights and franchises for the
purpose of operating said water system presently held and owned by the seller.
Section 2. The life of the additions, betterments and exten-
sions set forth in Section 1 of this ordinance is hereby declared to be at
least thirty years.
Section 3. The estimated cost, as near as may be, of the
acquisition of the said private water system as an addition to and betterment
and extension of the water system of the City, is hereby declared to be
$35,000.00.
Section 4. The gross revenues and benefits to be derived
from the operation and maintenance of the water system of the City 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 a special bond redemption fund out
of the gross revenues of the water system of the City of sufficient amountsto
pay the interest on the water revenue bonds herein authorized to be issued
and on the presently outstanding "Water Revenue Bonds, 1963, Issue No, l,"
"Water Revenue Bonds, 19 63 , Issue No. 2, " and the "Water Revenue Bonds,
1964," as such interest becomes due and payable and to pay and redeem all
of said bonds at maturity.
Section 5. The cost of acquiring and purchasing the fore-
going additions to and betterments and extensions of the water system of the
City shall be paid from the proceeds received from the issuance and sale of
water revenue bonds in an amount of not to exceed $35 , 000.00. The bonds
shall be issued in one or more series, at such time as the City Council shall
deem advisable and may be combined with and issued as a part of any subse-
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quent authorization of water revenue bonds. The bonds shall bear such desig-
nation; shall bear such interest rate or rates; shall be in such denominations
and form; shall be payable at such place or places and shall mature in accord-
ance with such schedules beginning not earlier than one year after date of
issuance and ending not later than thirty years thereafter, or shall be term
bonds; shall have such option of payment prior to maturity; shall guarantee
such coverage and collection of rates; shall provide for such additional funds
and accounts and shall contain and be subject to such provisions and cove-
nants as shall hereafter be provided by ordinance. The bonds shall be sold
at such times and in such manner as the City Council shall deem to be in the
best interests of the City.
Section 6. If the conditions required to be met for the issuance
of parity bonds as set forth in Section 9 of Ordinance No. 1178 of the City,
shall be met at the time of the issuance of the bonds herein authorized and
said bonds shall be issued as parity bonds with the outstanding "Water Revenue
Bonds, 1963, Issue No. 1," the'Water Revenue Bonds, 1963, Issue No. 2,"
and the "Water Revenue Bonds, 1964, " the bonds herein authorized shall be
payable solely out of the special fund of the City created by Ordinance No.
1178, adopted April 10 1963 and known as the "Water Revenue Bond Redemption
Fund, 1963."
In the event that the bonds herein authorized shall not be issued
as parity bonds, the bonds shall be payable solely out of such special fund as
shall be hereafter created in connection with the issuance and sale of such bonds
and shall be a valid claim of the holder thereof only as against such special
fund arlthe amount of the revenues of the water system of the City pledged to
such special fund, and shall not be a general obligation of the City of Kent,
Washington.
From and after the date of the issuance of the bonds and so
long thereafter as bonds are outstanding, the City Treasurer shall set aside
and pay into the appropriate bond redemption fund out of the gross revenues of
the water system of the City, a fixed amount without regard to any fixed pro-
portion, namely, an amount sufficient to pay the principal of and interest on
all bonds payable out of the special appropriate fund as they respectively
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become due, and to create such surplus and reserve, if any, that may here-
after be prescribed by ordinance. The gross revenues from the said water
system are hereby pledged to such payment, and the bonds herein authorized
shall constitute a charge or lien upon such revenues prior and superior to any
other charges whatsoever, excluding charges for maintenance and operation,
provided, however, that if the conditions required to be met for the issuance
of parity bonds as set forth in Section 9 of Ordinance No. 1178 shall be met
at the time of the issuance of the bonds herein authorized, the charge or lien
upon such gross revenues for the bonds herein authorized shall be on a parity
with the charge or lien upon such gross revenues for the outstanding "Water
Revenue Bonds, 1963, Issue No. 1," Water Revenue Bonds, 1963, Issue No.
2, " and Water Revenue Bonds, 1964, " . If said parity conditions shall not
be met, the charge or lien upon such gross revenues for the bonds herein
authorized shall be subordinate and inferior to the prior charge or lien upon
such gross revenues for said outstanding water revenue bonds.
Section 7. There is hereby created and established in the
office of the City Treasurer, a special fund of the City to be known as the
"Derbyshire Water System Acquisition Fund. " The proceeds of the sale of the
foregoing bonds shall be deposited in the "Derbyshire Water System Acquisi-
tion Fund, " and shall be used for the sole purpose of acquiring and purchas-
ing the Derbyshire Water System as specified in Section 1 hereof, and of pay-
ing the costs and expenses connected therewith. The action of the City
officials in heretofore entering into an Agreement and Bill of Sale as of May 3,
1965, with Derbyshire, Inc., a Washington corporation and Peoples National
Bank of Washington, acting in its capacity as the administrator de bons no,,
with will annexed of the estate of Chester M. Derbyshire, deceased, and the
City of Kent, for the acquisition of the Derbyshire private water system, is
hereby ratified and confirmed as the duly authorized act of the City. Pending
the sale of the water revenue bonds herein authorized, the City may issue
interest-bearing warrants drawn upon the "Derbyshire Water System Acquisition
Fund, " to bear interest at the rate of V, 24" % per annum, and to be paid out
of the proceeds of the sale of said water revenue bonds within a period of not
to exceed one year from date hereof.
Section 8. 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 thereof held on the 7th day
of June, 1965.
ATTEST:
CITY CLERK
Form Approved:
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CITY ATTORNEY
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MAYOR