HomeMy WebLinkAbout1488CITY OF KENT, WASHINGTON
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ORDINANCE NO. I ? a a
AN ORDINANCE specifying and adopting a
system or plan for making additions to and
betterments and extensions of the water supply
and distribution system of the City of Kent,
Washington; declaring the estimated cost there-
of as nearly as may be; providing for the issuance
and sale of not to exceed $250, 000.00 par value
of water revenue bonds for the purpose of obtaining
the funds to pay the cost of carrying out said
system or plan; creating a special construction
fund; and providing for the issuance and sale
of interest bearing warrants pending the sale of
the water revenue bonds;, and declaring an
emergency.
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, Washington, that certain water system improvements
be undertaken including the north water supply main extension, a Military
Road water main, exploratory test drilling work, and the preparation of a
Comprehensive Water Plan Report, and the City of Kent, therefore, hereby
specifies and adopts a system or plan for making additions to and better-
ments and extensions of the existing water supply and distribution system
of the City to consist of the following:
1. There shall be constructed and installed the north water
supply main extension consisting of an extension to the City's 16 inch
water transmission main on the East Valley Highway from South 192nd
Street to South 180th Street.
2. There shall be constructed and installed the following
Military Road water main consisting of an 8 inch line at the following
locations:
On
Military Road
South 264th St.
From
South 251st St.
Military Road
To
South 264th St.
33rd Avenue So.
3. Exploratory test drilling work shall be undertaken at the
City's well site on Icy Creek described as the North 1/2 of Government
Lot 3, in Section 20, Township 21 North, Range 7 East W. M. , King County,
Washington.
4. A Comprehensive Water Plan Report shall be prepared
consisting of Phase I covering in general the population and water usage
projections and study and recommendations regarding the location and type
of water sources available to the City, and Phase II covering the trans-
mission, storage, service levels, specific economic recommendations, and
complete comprehensive water plan for the City.
There shall be included in the foregoing the acquisition and
installation of all necessary valves, fittings, and other necessary appur-
tenances and the acquisition of such property and easements as may be
required.
The City Council may modify the details of the foregoing
system or plan of additions and betterments, such as to make reasonable
modifications in the size and location of water mains and in any other
details of said system or plan where, in the judgment of the City Council,
it appears advisable, provided such modifications do not substantially
alter the purposes hereinbefore set forth.
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.
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Section 3. The estimated cost of the acquisition, construc-
tion and installation of the above described additions to and betterments
and extensions of the water supply and distribution system of the City is
hereby declared to be, as near as may be, the sum of $250,000.00.
Section 4. The cost of acquiring, constructing, and making
the foregoing additions to and betterments and extensions of the water
supply and distribution system of the City shall be paid from the proceeds
received from the issuance and sale of water revenue bonds of the City in
an amount not to exceed $250, 000.00 .
Section 5. The gross revenues and benefits to be derived
from the operation and maintenance of the water supply and distribution
system of the City will, in the judgment of the City Council, be more than
sufficient to meet the cost 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 supply and distribution system of the City of
sufficient amounts to pay the interest on the water revenue bonds herein
authorized to be issued and on the presently outstanding "Water Revenue
Bonds, 1963, Issue No. 1," "Water Revenue Bonds, 1963, Issue No. 2,"
and "Water Revenue Bonds, 1964," and the water revenue bonds authorized
to be issued by Ordinances Nos. 1300 and 1408, when issued, as such
interest becomes due and payable to pay and redeem all of said bonds at
maturity.
Section 6. The water revenue bonds herein authorized to be
issued shall be issued in one or more series at such times as the City
Council shall deem advisable and may be combined with the not to exceed
$35,000.00 par value of water revenue bonds authorized to be issued by
the City by Ordinance No. 1300, passed by the City Council and approved
by the Mayor on June 7, 19 66 , and with the not to exceed $1, 200,000. 00
par value of water revenue bonds authorized to be issued by the City by
Ordinance No. 1408, passed by the City Council and approved by the
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Mayor on November 7, 1966, none of which bonds has heretofore been
issued. The water revenue bonds shall bear interest at an effective
rate not to exceed 6% per annum, payable semiannually, and shall be
numbered from "1" upwards, consecutively, within each series as issued.
The bonds shall be issued in such series; shall bear such designation;
shall be in such denominations and form; shall be payable at such place
or places; shall mature serially in accordance with such schedule,
beginning not earlier than one year after the 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 covenants
as shall hereafter be provided by ordinance. The bonds shall be sold in
such manner and at such times as the City Council shall determine to be
in the best interests of the City.
Section 7. 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. l," the "Water Revenue Bonds, 19 63 ,
Issue No. 2, " and the "Water Revenue Bonds, 19 64, " the bonds herein
authorized shall be payable solely out of the special fund of the City
created by Ordinance No. 1178, adopted April 1, 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 and the amount of the revenues of the
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water supply and distribution 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 supply and distribution system of the City, a fixed
amount without regard to any fixed proportion, namely, an amount
sufficient to pay the principal of and interest on all bonds payable out of
0
the special appropriate fund as they respectively become due, and to create
``such surplus and reserve, if any, that may hereafter be prescribed by
ordinanbe. The gross revenues from the said water supply and distribution
system a4laereby pledged to such payment, and the bonds herein author-
ized ofi constitute a charge or lien upon such revenues prior and superior
to any other chargeswhats£pever, excluding charges for maintenance and
open'ai` 6'ri-, ;provided, however, if tlWconditions required to be met for the
issuance of pari .tloet forthSection 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," 2Vater
Revenue Bonds, 1963, Issue Mo . Z , anal s r` nue Bands , 19 64, "
and water revenuePpp .,AotAorized to be issued by b41qai'ce°Nos. 1300
t
and, 140$,' when issuecL,.and if sued ai parity,(,..said parity
.a rM i • d'x �bt� r
conditions shall not" be met, the charge dl! oss revenues
eF for the bonds herein authorized shall be subordinate and inferior to the
prior charge or lien upon such gross revenues for all other outstanding
water revenue bonds of the City.
Section 8. There is hereby created and established in the
office of the City Treasurer, a special fund of the City to be known as
the "Water Construction Fund, 1967," which shall be used for the sole
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purpose of making the additions to and betterments and extensions of
the water supply and distribution system of the City as specified in
Section 1 hereof and of paying the cost and expenses connected therewith,
and into which fund shall be deposited the proceeds from the sale of the
water revenue bonds herein authorized to be issued. Pending the sale
of the water revenue bonds herein authorized, the City may issue interest
bearing warrants drawn upon the "Water Construction Fund, 1967, " to be
paid out of the proceeds from the sale of such water revenue bonds within
such period of time and to bear interest at such rate as the City Council
shall hereafter determine.
Section 9. 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 6th
day of November, 1967.
ATTEST:
City rk
FORM APPROVED:
)Zcity
Attorney