HomeMy WebLinkAbout1534CITY OF KENT, WASHINGTON
ORDINANCE NO. Z;*
AN ORDINANCE amending Section 5 of
Ordinance No. 1455; providing for the
issuance and sale of $1,800,000.00 par
value of "Sewer Revenue Bonds, 1968, "
for the purpose of providing a part of the
funds with which to carry out a system
or plan of additions to and betterments
and extensions of the sewage collection
and disposal system of the City adopted
in Ordinance No. 1337, as amended by
Ordinance No. 1455; fixing the date,
form, maturities, interest rates, terms
and covenants of such bonds; and pro-
viding for the sale thereof to McLean &
Company, Inc., of Tacoma, Washington.
WHEREAS, the City of Kent, Washington, by Ordinance No. 1455
passed by the City Council and approved by the Mayor on the 5th day of
June, 1967, specified and adopted a system or plan of additions to and better-
ments and extensions of the sewage collection and disposal system of the
City and ordered the same to be carried out, authorized the issuance and sale
of sewer revenue bonds in the principal sum of not to exceed $1, 750, 000.00
to pay part of the cost thereof, converted Local Improvement District No. 250
established by Ordinance No. 1337 into Utility Local Improvement District
No. 1, the property therein to be assessed to the extent of not to exceed
$1, 700, 000.00 of the cost of that system or plan, and provided that the remain-
ing cost should be paid from any funds which the City may have available for
that purpose, including any moneys received from the Economic Development
Administration of the United States Department of Commerce and the Municipality
of Metropolitan Seattle; and
WHEREAS, it is now estimated that to defray the total cost of the above
mentioned plan or system, it is necessary to increase the sewer revenue bond
authorization made in Ordinance No. 1455 from $1,750,000.00 to $1,800,000.00;
and
WHEREAS, the City of Kent has heretofore issued pursuant to Ordinance
No. 1033 passed and approved June 15, 1959, $300,000.00 par value of "Sewer
Revenue Bonds, 1959, " and pursuant to Ordinance No. 1268 passed and
approved October 5, 1964, $325,000.00 par value of "Sewer Revenue Bonds,
1964, Series A," and pursuant to Ordinance No. 1338 passed and approved on
April 18, 1966, $435,000.00 par value of "Sewer Revenue Bonds, 1966," all of
which bonds, pursuant to Section 8 of Ordinance No. 871, are issued on a
parity of lien with each other against the gross revenues of the sanitary sewage
and disposal system of the City; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DO ORDAIN
as follows:
Section 1. Section 5 of Ordinance No. 1455 is amended to read as
follows:
Section 5. Subject to the provisions of Section 7 of this Ordinance
No. 1455, the cost of the system or plan for additions to and betterments and
extensions of the sewerage system of the City adopted by this ordinance
shall be met and defrayed from any funds which the City may have for such
purpose, including any moneys received from the Economic Development Ad-
ministration and the Municipality of Metropolitan Seattle, as aforesaid, and
by the issuance and sale of sewer revenue bonds of the City in the sum of
not to exceed $1,800,000.00 par value. The bonds shall be issued at such
times and in such amounts or series as the City Council shall hereafter
determine and shall contain such covenants and interest rates as the City
Council shall hereafter approve. The bonds shall be payable from the gross
revenues received from charges for sanitary sewage disposal service, from
charges for garbage collection and disposal service, and from the receipt of
payments of assessments levied in Utility Local Improvement District No. 1
created by this ordinance. Such assessments shall be for the sole purpose of
payment into the special revenue bond redemption fund hereinafter created for
the payment of the revenue bonds authorized by this ordinance.
Section 2. For the purposes of this Ordinance the following words
shall have the following meanings:
(a) "Bonds" shall mean the $1,800,000.00 par value
of "Sewer Revenue Bonds, 1968, " issued pursuant to and for the purposes pro-
vided in this Ordinance, and which were originally denominated in Ordinance
No. 1455 as the "Sewer Revenue Bonds, 1967. "
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(b) "Bond Fund" shall mean the "Sewer Revenue Bond Fund, 1968, "
originally created by Ordinance No. 1455 as the "Sewer Revenue Bond Fund,
1967," and renamed by this Ordinance, and to be used for the payment of the
outstanding Bonds and Parity Bonds.
(c) "1959 Bonds" shall mean the outstanding "Sewer Revenue Bonds,
1959, " issued pursuant to Ordinance No. 1033.
(d) "1959 Bond Fund" shall mean the "Sewer Revenue Bond Fund, 1959, "
created by Ordinance No. 1022 for the payment of the 1959 Bonds.
(e) "1964 Bonds" shall mean the outstanding "Sewer Revenue Bonds,
1964, Series A, " issued pursuant to Ordinance No. 1338.
(f) "1964 Bond Fund" shall mean the "Sewer Revenue Bond Fund, 1964;'
created by Ordinance No. 1226 for payment of the 1964 Bonds.
(g) "1966 Bonds" shall mean the outstanding "Sewer Revenue Bonds,
1966, " issued pursuant to Ordinance No. 1338.
(h) "1966 Bond Fund" shall mean the "Sewer Revenue Bond Fund, 1965, "
created by Ordinance No. 1295 (and renamed the "Sewer Revenue Bond Fund,
1966") for the payment of the 1966 Bonds.
(i) "City" shall mean the City of Kent, Washington.
(j) "Gross revenues of the System of Sewerage" shall mean allof the
earnings and revenue received by the System of Sewerage from any source
whatsoever, except assessments and installments thereof and interest and any
penalties thereon levied or collected in any utility local improvement district of
the City.
(k) "Net revenue of the System of Sewerage" shall mean the Gross
Revenue of the System of Sewerage, less the operation and maintenance expenses
of that System, including payments which may be made to the Municipality of
Metropolitan of Seattle for sewage treatment and disposal, but before
depreciation.
(1) "Parity Bonds" shall mean any and all outstanding sewer revenue
bonds (or water and sewer revenue bonds in the event the water utility of the City
and System of Sewerage shall be hereafter combined) of the City, issued subject
to the requirements of Section 9 of this Ordinance, the payment of which, both
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principal and interest, constitutes a lien and charge upon the gross revenues
of the System of Sewerage and upon all utility local improvement district
assessments and installments thereof, plus interest and all penalties thereon,
required to be paid into the Bond Fund, equal in rank with the lien and charge
upon such revenue and assessments for the payments required to pay or secure
the payment of the Bonds.
(m) "Principal and Interest Account" shall mean the account of that
name created in the Bond Fund to be first used to pay the principal of and
interest on the Bonds and any Parity Bonds.
(n) "Reserve Account" shall mean the account of that name created in
the Bond Fund to secure the payment of the principal of and interest on the
Bonds and any Parity Bonds.
(o) "Sewer Revenue Fund" shall mean the fund by that name created by
Ordinance No. 871, (or, in the event the System of Sewerage shall be combined
into the water utility of the City, the "Water and Sewer Revenue Fund") into
which fund shall be paid as collected all of the gross revenues of the System
of Sewerage.
(p) "System of Sewerage" shall mean the sanitary sewage collection and
disposal system of the City, including the system and plant for garbage and
refuse collection and disposal combined therein by Ordinance No. 1338, to-
gether with all additions thereto and betterments and extensions thereof at
anytime made, and, in the event the water utility of the City shall be combined
with the System of Sewerage, then it shall mean the waterworks utility of the
City, including the System of Sewerage as a part thereof.
(q) "Term Bond Maturity Year" shall mean any last calendar year
in which the Bonds or any issue or series of Parity Bonds are scheduled to
mature (regardless of any reservation of prior redemption rights) in which the
amount of such outstanding bonds scheduled to mature is more than 1.25 times
the average principal maturity of the bonds of such issue or series for the three
years immediately preceding such Term Bond Maturity Year.
(r) "Term Bonds" shall mean those numbered outstanding bonds of
the Bonds, or any single issue or series of Parity Bonds, scheduled to mature
in any Term Bond Maturity Year.
Section 3. For the purpose of obtaining a part of the funds
necessary to carry out the system or plan of additions to and betterments
and extensions of the System of Sewerage of the City, as specified, adopted
and ordered to be carried out by Ordinance No. 1455, as amended, there shall
be issued and sold $1, 800, 000.00 par value of "Sewer Revenue Bonds, 1968, "
in place of the designation "Sewer Revenue Bonds, 1967, " specified in
Ordinance No. 1455, as amended, and, pursuant to Section 2 of this Ordinance,
shall hereinafter be called the "Bonds. " The Bonds shall be in denominations
of $5,000.00 each; shall be dated October 1, 1968; and shall bear interest at
the rates set forth below, payable semiannually on April 1 and October 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
same rate 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 payable
in lawful money of the United States of America at the office of the City
Treasurer of the City of Kent, Washington, solely out of the special fund
created and established by Ordinance No. 1455 and therein designated "Sewer
Revenue Bond Fund, 1967," which designation is hereby changed to "Sewer
Revenue Bond Fund, 1968, " and, pursuant to Section 2 of this Ordinance, shall
hereinafter be called the "Bond Fund. " The Bonds shall be numbered, mature
serially, and bear interest in accordance with the following schedule:
Bond Numbers
Interest
(Inclusive)
Amount
Rate
Maturities
1 to
10
$ 50,000
5.50%
October 1,
1969
11 to
23
65,000
5.50%
October 1,
1970
24 to
36
65,000
5.50%
October 1,
1971
37 to
49
65,000
5.50%
October 1,
1972
50 to
62
65,000
5.50%
October 1,
1973
63 to
74
60,000
5.50%
October 1,
1974
75 to
84
50,000
5.50%
October 1,
1975
85 to
95
55,000
5.50%
October 1,
1976
96 to
106
55,000
5.50%
October 1,
1977
107 to
117
55,000
5.50%
October 1,
1978
118 to
128
55,000
5.50%
October 1,
1979
129 to
139
55,000
5.50%
October 1,
1980
140 to
150
55,000
5.50%
October 1,
1981
151 to
161
55,000
5.50%
October 1,
1982
162 to
173
60,000
5.50%
October 1,
1983
174 to
185
60,000
5.50%
October 1,
1984
186 to
197
60,000
5.50%
October 1,
1985
198 to
213
80,000
5.50%
October 1,
1986
214 to
229
80,000
5.50%
October 1,
1987
230 to
245
80,000
5.60%
October 1,
1988
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Bond Numbers
1978,
Interest
1979,
(Inclusive)
Amount
Rate
Maturities
246 to 269 $
120,000
5.60%
October 1, 1989
or April 1,
1981,
at $102.00
October 1,
270 to 284
75,000
5.60%
October 1, 1997
285 to 360
380,000
5.60%
October 1, 1998
Section 4. At the time of delivery of the Bonds to the purchaser
thereof, the City shall redeem Bonds Nos. 301 to 360, inclusive, at par
plus accrued interest to date of redemption.
Bonds numbered 1 to 117, inclusive, maturing October 1, 1969, to
October 1, 1978, inclusive, shall be issued without the right or option of the
City to call the same for redemption prior to their stated maturity dates.
The City reserves the right to redeem the remaining Bonds as a whole,
or in part in inverse numerical order, on October 1, 1978, or on any subsequent
interest payment date at the following redemption prices per each $100.00 par
value thereof, if redeemed on the following dates, plus accrued interest to date
of redemption in each case:
October 1,
1978,
or April 1,
1979,
at $103.00
October 1,
1979,
or April 1,
1980,
at $102.50
October 1,
1980,
or April 1,
1981,
at $102.00
October 1,
1981,
or April 1,
1982,
at $101.50
October 1,
1982,
or April 1,
1983,
at $101.00
October 1,
1983,
or April 1,
1984,
at $100.50
October 1,
1984,
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 that 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. In addition, such redemption notices shall be mailed 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 further reserves the right to purchase any or all of the Bonds
in the open market at any time at a price not in excess of the redemption price
applicable at the time of such purchase.
Section 5. The Bond Fund is hereby divided into two accounts, namely,
a "Principal and Interest Account" and a "Reserve Account." So long as any
Bonds are outstanding against the Bond Fund, the City Treasurer of the City
of Kent shall set aside and pay into the Bond Fund a fixed amount without regard
to any fixed proportion, as follows:
(a) Into the Principal and Interest Account, out of the
Sewer Revenue Fund monthly, on or before the 20th day of
each month, beginning with the month of October, 1968, and
continuing thereafter one-sixth of the next ensuing six months'
interest requirements of the Bonds, and in addition one -twelfth
of the next ensuing twelve months' requirements for principal
of the Bonds; and
(b) Into the Reserve Account, subject to section 10
from the first assessments received or installments thereof
and interest and any penalties thereon in Utility Local Im-
provement District No. 1, by October 1, 1973, a sum at least
equal to the maximum annual amount required for debt service
on any outstanding Bonds and Parity Bonds, excluding the
principal but including the interest payable in any Term Bond
Maturity Year. In the event that assessment payments shall
be inadequate to build up the required amount by the above
date, the City shall deposit sufficient amounts from the
Sewer Revenue Fund to meet the requirements of this paragraph.
The Reserve Account may be accumulated from any other moneys which
the City may have available for such purpose in addition to using assessments
and revenues in the Sewer Revenue Fund therefor.
The City covenants and agrees that when the required amounts have
been deposited in the Reserve Account, it will at all times maintain those
amounts therein until there is a sufficient amount in the Principal and Interest
Account and Reserve Account to pay the principal of, call premium if any, and
interest on all outstanding bonds payable out of the Bond Fund, at which time
the money in the Reserve Account may be used to pay such principal, call
premium if any, and interest; except that moneys in the Reserve Account may be
withdrawn to pay the principal of all or a part of any maturity then due of the
Bonds or Parity Bonds or the principal, call premium if any, and interest on all
of the outstanding bonds of any single issue or series of revenue bonds payable
out of the Bond Fund so long as the moneys thereafter remaining on deposit in
the Reserve Account meet the requirements of the immediately preceding paragraph
of this section for all remaining bonds then outstanding payable out of the
Bond Fund.
ac
In the event there shall be a deficiency in the Principal and
Interest Account to meet maturing installments of either interest on or
principal of and interest on the Bonds and any Parity Bonds outstanding,
such deficiency shall be made up from the Reserve Account by the withdrawal
of cash therefrom. Any deficiency created in the Reserve Account by reason
of any such withdrawal shall then be made up from the Gross Revenues of the
System of Sewerage and from moneys collected on utility local improvement
district assessments or installments thereof and interest and any penalties
thereon pledged by this and other ordinances of the City to be paid into the
Bond Fund, which shall be first available after making necessary provisions
for other required payments into the Bond Fund.
All moneys in the Reserve Account may be kept in cash or deposited
in institutions permitted by law in an amount in each institution not greater
than the amount insured by any department or agency of the United States
Government, or may be invested in United States Government obligations
maturing not later than five years from date of purchase and maturing not later
than the last maturity of any outstanding bonds payable out of the Bond Fund.
Interest earned on any such investments 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.
It is hereby declared that in creating the Bond Fund and in fixing the
amounts to be paid into it, as aforesaid, the City Council has due regard for
the cost of operation and maintenance of the System of Sewerage and the debt
service requirements for all other outstanding sewer revenue bonds of the City
and hereby declares that the City Council is not setting aside into the Bond
Fund a greater amount than in its judgment will be available over and above
such costs of operation and maintenance and such debt service requirements.
If the City fails to set aside and pay into the Bond Fund the amounts
above set forth, the holder of any of the outstanding bonds payable out of the
Bond Fund may bring action against the City to compel such setting aside and
payment.
Section 6. The Gross Revenues of the System of Sewerage and all
assessments and installments thereof, plus interest and any penalties thereon,
levied and hereafter collected in Utility Local Improvement District No. 1
and in any utility local improvement districts which may be hereafter created,
the assessments of which are pledged by the City to be paid into the Bond
Fund, are hereby pledged for the payment of the Bonds and any Parity Bonds
which may be issued. The Bonds and any Parity Bonds shall constitute a lien
or charge upon the Net Revenues of the System of Sewerage and such utility
local improvement district assessments and payments prior and superior to any
other charges whatsoever, except that the lien or charge upon such revenues
for such bonds shall be subordinate and inferior to the prior lien or charge upon
the Gross Revenues of the System of Sewerage for the presently outstanding
1959 Bonds, 1964 Bonds and 1966 Bonds.
Section 7. The City covenants and agrees with the owner and holder
of each of the Bonds at any time outstanding, as follows:
(a) All assessments and installments thereof in
Utility Local Improvement District No. 1 heretofore
created and in any utility local improvement district
hereafter created to secure the payment of the princi-
pal of and interest on any Parity Bonds which may be
hereafter issued shall be paid into the Bond Fund
and may be used to build up the required reserves
in the Reserve Account and to pay the principal of
and interest on the Bonds and/or such Parity Bonds,
without those assessments or installments thereof
or interest or penalties thereon being particularly
allocated to the payment of the principal and interest
of any particular issue of bonds. Nothing in this
ordinance or this section shall be construed to
prohibit the City from issuing sewer revenue bonds
junior in lien to the Bonds and pledging as security
for their payment assessments levied in any utility
local improvement district which may have been
specifically created to pay part of the cost of im-
provements to the System of Sewerage for which
those junior lien bonds were specifically issued.
(b) It will establish, maintain and collect such
rates and charges for sanitary sewage disposal
service and for garbage and refuse collection and
disposal service for so long as any of the Bonds and
Parity Bonds are outstanding that will make available
for the payment of the principal and interest of such
bonds and the outstanding 1959 Bonds, 1964 Bonds and
1966 Bonds as the same shall become due Net Revenues
of the System of Sewerage, together with all utility
local improvement district assessments payable into
the Bond Fund, an amount equal to at least 1.35 times
the amount required in each calendar year to pay all
of such principal and interest as the same become due
that year, but excluding any Term Bond Maturity Year.
(c) It will use the Gross Revenues of the System of
Sewerage for the following purposes only and in the following
order of priority:
(1) To pay necessary expenses of operation and
maintenance of the System of Sewerage, including
payments due to the Municipality of Metropolitan
Seattle for sewage treatment and disposal;
(2) To make all payments, as required to be made,
into the reserve accounts and principal and interest
accounts of the 1959 Bond Fund, 1964 Bond Fund and
1966 Bond Fund;
(3) To make all payments, as required to be made,
into the Reserve Account and Principal and Interest
Account of the Bond Fund for the Bonds and any
Parity Bonds;
(4) To make all required payments into any other
sewer (or water and sewer) revenue bond redemption
fund or funds and reserve account or accounts therein
which may be later created for the purpose of paying
and securing the payment of the principal of and
interest on any junior lien sewer (or water and sewer)
revenue bonds hereafter issued by the City;
(5) To make necessary additions, betterments and
improvements and repairs to or extensions and re-
placements of the System of Sewerage, or to expend
such revenue for any other proper purposes connected
with the operation of the System of Sewerage for
which such money may be lawfully used; and
(6) To retire by redemption or purchase outstanding
sewer (or water and sewer) revenue bonds of the City
as authorized in the various bond ordinances of the
C ity. .
(d) It will at all times maintain and keep the System of
Sewerage in good repair, working order and condition, and
also, will at all times operate such system and the business
in connection therewith in an efficient manner and at a
reasonable cost.
(e) It will not sell, lease, mortgage or in any manner
encumber or dispose of all the property of the System of
Sewerage 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 Bonds at any time out-
standing, and that it will not sell, lease, mortgage or in
any manner encumber or dispose of any part of the property
of that system 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 an amount
which shall not be less than an amount which shall bear
the same ratio to the amount of outstanding Bonds and
Parity Bonds as the revenue available for debt service for
such outstanding Bonds and Parity Bonds for the twelve
months preceding such sale, lease, encumbrance or
disposal from the portion of the system sold, leased, en-
cumbered or disposed of bears to the revenue available
for debt service for such Bonds and Parity Bonds from the
entire system for the same period. Any such money so
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paid into the Bond Fund shall be used to retire such out-
standing Bonds at the earliest possible date.
(f) It will while any of the Bonds or Parity 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 System of Sewerage, and it
will furnish the original purchaser or purchasers of the Bonds
and Parity Bonds, or any subsequent holder or holders
thereof, at the written request of such holder or holders,
complete operating and income statements of the System of
Sewerage in reasonable detail covering any calendar year
not more than ninety (90) days after the close of such calen-
dar year, and it will grant any holder or holders of at least
twenty-five percent (25%) of the outstanding Bonds and
Parity Bonds, the right at all reasonable times to inspect
the entire system and all records, accounts and data of
the City relating thereto. Upon request of any holder
of any of the Bonds or Parity Bonds, it also will furnish
such holder a copy of the most recently completed audit
of the City's accounts by the State Auditor of Washington.
(g) It will not furnish sanitary sewage disposal service
or garbage and refuse collection and disposal service to
any customer whatsoever free of charge, and it will promptly
take legal action to enforce collection of delinquent accounts
and assessments.
(h) It will carry the types of insurance on its System of
Sewerage properties in the amounts normally carried by
private sewer companies engaged in the operation of sewer
systems. The cost of such insurance shall be considered
a part of operating and maintaining that system. If, as
and when, the United States of America or some agency
thereof shall provide for war risk insurance, the City fur-
ther agrees to take out and maintain such insurance on all
or such portions of the System of Sewerage on which such
war risk insurance may be written in an amount or amounts
to cover adequately the value thereof.
(i) It will pay all costs of maintenance and operation
of the System of Sewerage and the debt service requirements
for the outstanding 1959 Bonds, 1964 Bonds and 1966 Bonds,
and otherwise meet the obligations of the City, as herein
set forth.
Section 8. The Bonds shall be in substantially the following form:
No.
UNITED STATES OF AMERICA
STATE OF WASHINGTON
CITY OF KENT
SEWER REVENUE BOND, 1968
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o�
0
$5,000.00
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 the bearer the principal sum of
FIVE THOUSAND DOLLARS
on the FIRST DAY OF OCTOBER, 19 ,
together with interest thereon at the rate of
PERCENT
(%) per annum, payable semiannually on
the first days of April and October of each year,
upon the presentation and surrender of the
attached interest coupons as they severally
mature up to the bond maturity date, 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 until there is sufficient money in the
bond redemption fund hereinafter referred to
for such payment in full and this bond has been
duly called for redemption. Both principal and
interest are payable in lawful money of the
United States of America at the office of the
City Treasurer of Kent, Washington, solely
out of the special fund created by Ordinance No. 1455,
as amended, and known as the "Sewer Revenue Bond
Fund, 1968" (hereinafter called the "Bond Fund") .
This bond is one of a total issue of $1,800,000.00
par value of bonds, all of like date, tenor and effect,
except for maturities, interest rates and options of
redemption, 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 Ordinances
Nos. 1455, as amended, and 53 of the City,
for the purpose of providing a par of the funds to
pay the cost of carrying out the system or plan
for making additions to and betterments and ex-
tensions of the existing system of sewerage of
the City, as adopted and ordered to be carried out
by Ordinance No. 1455, as amended. Reference
is made to Ordinances Nos. 1455, and' 15-3
as more fully describing the covenants with end
rights of holders of bonds of this issue.
At the time of delivery of the bonds of this issue
to the original purchaser thereof, the City shall
redeem bonds numbered 301 to 360, inclusive, at
par plus accrued interest to date of redemption.
Bonds numbered 1 to 117, inclusive, maturing
October 1, 1969, to October 1, 1978, inclusive,
are issued without the right or option of the
City to call the same for redemption prior to
their stated maturity dates. The City has re-
served the right to redeem the remaining bonds
of this issue as a whole, or in part in inverse
numerical order, on October 1, 1978, or on any
subsequent interest payment date at the following
redemption prices per each $100.00 par value
thereof, if redeemed on the following dates,
plus accrued interest to date of redemption in
each case:
October 1, 1978, or April 1, 1979, at $103.00
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October 1, 1979, or April 1, 1980, at $102.50
October 1, 1980, or April 1, 1981, at $102.00
October 1, 1981, or April 1, 1982, at $101.50
October 1, 1982, or April 1, 1983, at $101.00
October 1, 1983, or April 1, 1984, at $100.50
October 1, 1984, 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 that intended redemption shall also be
mailed to McLean & Company, Inc., at its
principal place of business in Tacoma, Washing-
ton, or its successor, not less than thirty nor
more than forty-five days prior to the call date.
In addition, such redemption notices shall be
mailed 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 bonds of this issue constitute a lien or
charge upon the gross revenues of the system of
sewerage of the City, including the system and
plant for garbage and refuse collection and dis-
posal combined with the system of sewerage
pursuant to Ordinance No. 1338 (which combined
systems are herein referred to as the "system of
sewerage"), and the special assessments levied
in Utility Local Improvement District No. 1 of
the City and any other utility local improvement
district assessments the payment of which must
be made into the Bond Fund, prior and superior
to any other charges whatsoever, excluding
charges for maintenance and operation, except
that the lien or charge upon those gross revenues
are subordinate and inferior to the prior lien
or charge upon such gross revenues for the pay-
ment of the principal of and interest on the out-
standing Sewer Revenue Bonds, 1959," the
outstanding "Sewer Revenue Bonds, 1964, Series
A, " and the outstanding "Sewer Revenue Bonds,
1966, hereinafter referred to as the "prior lien
bonds, but such lien or charge shall be on a
parity of lien with any additional and/or refunding
bonds hereafter issued on a parity of lien with
the bonds of this issue in accordance with t e pro-
visions of Section 9 of Ordinance No. /53Y'.
f
The City has covenanted to establish,
maintain and collect such rates and charges for
sanitary sewage disposal service and garbage
and refuse collection and disposal service for
so long as any bonds of this issue are outstanding
that will provide revenue equal to at least 1.35
times the amount required in any calendar year
to pay the principal of and interest on the out-
standing bonds of this issue, prior lien bonds,
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and bonds hereafter issued on a parity of
lien with the bonds of this issue as the
same shall become due in that calendar
year, after necessary costs of maintenance
and operation of the system have been paid,
but before depreciation.
The City further covenants and agrees to
maintain in good condition and to operate the
system of sewerage and all additions thereto
and betterments, replacements and extensions
thereof, and to establish, maintain and collect
such rates for sanitary sewage disposal service
and for garbage and refuse collection and dis-
posal service as will produce gross revenues
from the system of sewerage sufficient to
permit payment into the Bond Fund of the
amounts required for the payment of the
principal of and interest on the bonds of this
issue as they become due and the amounts to
be paid into the "Reserve Account" in the
Bond Fund, and in addition thereto to pay
all costs of maintenance and operation of the
System of Sewerage and the debt service re-
quirements of the prior lien bonds, and other-
wise 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
ordinances of the City of Kent, and that all
acts, conditions and things required to happen,
be done, or be performed 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,
Washington, has caused this bond to be
signed by the facsimile signature of its Mayor
and the manual signature of 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 October, 1968.
CITY OF KENT, WASHINGTON
By (facsimile signature)_
Mayor
ATTEST:
Clerk
The interest coupons attached to the Bonds shall be in
substantially the following form:
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Coupon No.
On the FIRST DAY OF (APRIL) (OCTOBER) , 19 ,
the CITY OF KENT, WASHINGTON, upon presenta-
tion and surrender of this coupon, will pay to
bearer at the office of the City Treasurer, the
sum shown hereon in lawful money of the
United States of America from the special fund
of the City known as the "Sewer Revenue Bond
Fund, 1968," that sum being six months' interest
then due on its "Sewer Revenue Bond, 1968, "
dated October 1, 1968, and numbered
CITY OF KENT, WASHINGTON
By (facsimile signature)
Mayor
ATTEST:
(facsimile signature)
Clerk
Section 9. 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 Clerk, and shall have the seal of the City of Kent
affixed thereto, and the coupons shall bear the facsimile signatures of
the Mayor and the Clerk.
Section 10. The City covenants and agrees that for as long as
any of the Bonds is outstanding it will not create any special fund or funds
for the payment of the principal of and interest on any other sewer revenue
bonds and shall not issue any such bonds which would rank on a parity with
or have priority over the payments into the Bond Fund to be made out of the
Gross Revenues of the System of Sewerage except that the City reserves the
right for
(1) the purpose of acquiring, constructing and
installing additions to and betterments, improve-
ments and extensions of, acquiring necessary
equipment for or making necessary replacements
of equipment or capital improvements to, the
System of Sewerage, or
(2) the purpose of exchanging or purchasing
or refunding and retiring prior to or at maturity
any outstanding sewer revenue bonds of the City,
to issue additional and/or refunding Parity Bonds therefor, and to make
payments into the Bond Fund from the Gross Revenues of the System of
Sewerage, together with assessments or installments and interest and
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penalties thereon collected in any utility local improvement district to
be paid into the Bond Fund, sufficient to pay the principal of and interest on
such Parity Bonds and to maintain a reserve therefor, as hereinafter required,
which such payments may rank equally with the payments out of such Gross
Revenues, assessments or installments thereof and interest thereon collected,
required by this Ordinance to be made into the Bond Fund and Reserve Account
created therein, in compliance with the following conditions:
(a) All payments then required by this ordinance
and all payments then required by any ordinance
hereafter adopted pertaining to any Parity Bonds
hereafter issued shall have been made into the Bond
Fund and that there shall be no deficiency therein;
and
(b) The ordinance providing for the issuance of
such additional Parity Bonds shall provide that all
assessments and interest and penalties thereon,
which may be levied in any utility local improvement
districts hereafter created for the purpose of paying
in whole or in part the principal of and interest on
such additional Parity Bonds, shall be paid directly
into the Bond Fund; and
(c) The ordinance providing for the issuance of
such additional bonds shall provide for the payment
of the principal thereof and interest thereon out of the
Bond Fund and shall further provide for the immediate
payment into the Reserve Account in the Bond Fund out
of such assessments levied and first collected for the
payment of the principal of and interest on such
additional Parity Bonds and, if necessary, out of any
other moneys of the City available for such purpose,
of an amount, in addition to the amounts required to
be maintained in the Reserve Account for the then out-
standing Bonds and any Parity Bonds theretofore
issued, equal to the maximum annual principal and
interest requirements of those additional Parity Bonds,
including the interest on, but excluding the principal
of, bonds payable within a Term Bond Maturity Year.
In the event no assessments are levied for the payment
of the principal of and interest on such additional reve-
nue bonds, or insufficient assessments are collected
to meet such requirements, then the City shall pay
such amount into the Reserve Account within five years
from the date of issuance of such bonds. In the case
of refunding Parity Bonds, the ordinance authorizing
the issuance of such refunding Parity Bonds shall pro-
vide that the money in the Reserve Account for the
bonds to be refunded shall be retained in the Bond
Fund as a reserve for the refunding bonds, or the money
in any other reserve account or fund for the bonds being
refunded shall be transferred to the Reserve Account in
the Bond Fund, but if such amount does not equal the
above requirements of such bonds, such required re-
serve for the refunding Parity Bonds shall be accumulated
in the same manner and within the same time as set
forth herein for additional Parity Bonds.
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(d) There shall be on file with the City a
certificate of a professional engineer experienced in
municipal utilities and licensed to practice in the State
of Washington, or a certified public accountant, to the
effect that the Net Revenues of the System of Sewerage
for any twelve consecutive calendar months out of the
immediately preceding fifteen calendar months' period
(if the System of Sewerage or portion thereof does not
have an operating experience of at least twelve calen-
dar months, then the Net Revenue shall be projected
for a full twelve-month period) , together with assess-
ments, both principal and interest, collected in Utility
Local Improvement District No. 1 and in any other utility
local improvement district hereafter created, the assess-
ments in which are to be paid into the Bond Fund, to-
gether with the additional Net Revenues reasonably
anticipated to be received from the making of the im-
provements in connection with which the additional
Parity Bonds are proposed to be issued, together with
the collection of assessments, both principal and in-
terest, reasonably anticipated to be collected in any
utility local improvement districts created to pay in
whole or in part such additional Parity Bonds, together
with revenues projected to twelve months from users of
the System of Sewerage for less than twelve months,
together with any increase in Net Revenues reasonably
anticipated to result from any change in the schedule
of charges for the System of Sewerage to be put into
effect prior to the issuance of such additional bonds,
and together with any increase or decrease in Net Reve-
nues reasonably anticipated to result from a normal
growth or shrinkage in the number of customers on the
System of Sewerage, less additional maintenance and
operation costs attributable to the improvements to be
made from the proceeds of those additional Parity Bonds,
to the effect that such Net Revenues, earnings, collec-
tions and income are deemed sufficient to equal at
least 1.35 times the principal and interest requirements
during each calendar year of the outstanding Bonds and
Parity Bonds, the additional Parity Bonds to be issued,
and any outstanding 1959 Bonds, 1964 Bonds and 1966
Bonds up to the final maturity date thereof, excluding
in both cases the principal requirements, but including
the interest requirements, of bonds maturing in any
Term Bond Maturity Year. If such additional Parity
Bonds proposed to be so issued are for the sole purpose
of refunding outstanding sewer (or water and sewer)
revenue bonds, such certification of coverage shall not
be required if the amount required for payment of the
principal and interest in each year for the refunding
Parity Bonds is not increased over the amount required
for the bonds to be refunded thereby and the maturities
of the refunding bonds are not extended beyond the
maturities of the bonds to be refunded thereby.
The right to issue hereafter any additional bonds on a parity of
lien with the outstanding 1959 Bonds, 1964 Bonds and 1966 Bonds is cancelled
and rescinded.
Section 11. McLean & Company, Inc., of Tacoma, Washington,
has offered to purchase the Bonds as evidenced by its written offer on file
with the City Clerk. The City Council, being of the opinion that such offer
was the best that could be obtained and that it was in the best interest of
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the City that the same be accepted, duly accepted the same on September 16,
1968, and that acceptance is hereby ratified and confirmed. The Bonds
shall, therefore, immediately upon their execution and delivery to the City
Treasurer be delivered to such purchaser upon payment therefor in accordance
with such accepted offer.
The City Treasurer is hereby authorised and requested to deposit
in the Bond Fund the accrued interest received at the delivery of the Bonds
and the principal proceeds received from the sale of the Bonds in the "Sewer
Construction Fund, 19 67 " created and established in the office of the City
Treasurer by Ordinance No. 1455. The moneys in that construction fund
shall be used to pay the costs of carrying out the improvement ordered to
be carried out by Ordinance No. 1455, as amended, and to redeem revenue
warrants payable from the Fund.
At the time of the delivery of the Bonds to the purchaser thereof,
the City shall forthwith redeem Bonds Nos. 301 to 360, inclusive, by the
payment of the principal thereof and accrued interest thereon from moneys
in the Bond Fund derived from the prepayment of assessments in Utility Local
Improvement District No. 1. In addition, $75,000.00 of such prepaid
assessments shall be deposited into the Reserve Account and the balance of
such prepaid assessments shall be deposited in the Principal and Interest
Account.
PASSED by the City Council of the City of Kent, Washington,
and APPROVED by its Mayor, at a regular meeting held on the 16th day of
September, 1968.
Mayor
ATTEST:
City rk
FORM APPROVED:
JJ. L-14 �.
City Attorney
I, MARIE JENSEN, City Clerk of the City of Kent, Washington,
do hereby certify that the attached ordinance is a full, true and complete
copy of the original Ordinance No. ' f> ,passed on the 16th day of
September, 1968, as that ordinance appears on the Minute Book of the
City.
DATED this day of September, 1968.
�MARIEJENS, Cit�Cle