HomeMy WebLinkAbout49451
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CITY OF AUBURN, WASHINGTON
ORDINA~Cm. NO. 4945
AN ORDINANCE OF THE CITY OF AUBURn, WASHINGTON, RELATING
TO THE COMBINED WATER SUPPLY AND DISTRIBUTION SYSTEM AND THE
SANITARY SEWAGE SYSTEMS; COMBINING THE STORM DRAINAGE/SURFACE
SYSTEM WITH THE EXISTING COMBINED SYSTEMS; SPECIFYING AND
ADOPTING A SYSTEM OR PLAN OF ADDITIONS TO AND BETTERMENTS AND
EXTENSIONS OF THAT COMBINED UTILITY; PROVIDING FOR THE
ISSUANCE OF $5,000,000 PAR VALUE OF UTILITY SYSTEM REVENUE
BONDS, 1997, OF THE CITY TO OBTAIN THE FUNDS REQUIRED TO CARRY
OUT THAT SYSTEM OR PLAN AND TO FUND A RESERVE FOR AND TO PAY
THE COSTS OF ISSUING THE BONDS; FIXING THE DATE, FORM,
MATURITIES, INTEREST RATES, TERMS AND COVENANTS OF THE BONDS;
CREATING CERTAIN FUNDS ~ ACCOUNTS OF THE CITY AND PROVIDING
FOR THE DEPOSIT THEREIN OF BOND PROCEEDS AND OTHER MONEY OF
THE CITY; PROVIDING FOR BOND INSURANCE; AND APPROVING THE SALE
AIqD PROVIDING FOR THE DELIVERY OF THE BONDS TO SEATTLE-
NORTHWEST SECURITIES CORPORATION OF SEATTLE, WASHINGTON.
Prepared by
Foster Pepper & Shefelman
1111 Third Avenue, Suite 3400
Seattle, Washington 98104
(206) 447-4400
TABLE OF CONTENTS
SECTION 1. DEFINITIONS ............................................................................................................... ; ..................... 4
SECTION 2. COMBINING OF UTILITIES .......................................................................................................... 15
SECTION 3. ADOPTION OF PLAN OF ADDITIONS ........................................................................................ 15
SECTION 4. DESCRIPTION OF BONDS ............................................................................................................. 15
SECITON 5. REGISTRATION AND TRANSFER OF BONDS .......................................................................... 17
SECTION 6. PAYMENT OF BONDS .................................................................................................................... 20
SECTION 7. OPTIONAL REDEMPTION[, MANDATORY REDEMPTIONI AND OPEN MARKET
PURCHASE OF BONDS .......................................................................................................................................... 21
SECTION 8. NOTICE OF REDEMPTION ........................................................................................................... 23
SECTION 9. FAILURE TO REDEEM BONDS .................................................................................................... 24
SECTION 10. CREATION OF AND PAYMENTS INTO BOND FUND ........................................................... 25
SECTION 11. RATE STABILIZATION FUND .................................................................................................... 29
SECTION 12. FINDING AS TO SUFFICIENCY OF REVENUE, PLEDGE OF REVENUE AND LIEN
POSITION .................................................................................................................................................................. 30
SECTION I3. DEPOSIT OF BOND PROCEEDS ................................................................................................. 31
SECTION 14. REVOCATION OF RIGHT TO ISSUE PRIOR LIEN BONDS ................................................. 32
SECTION 15. COVENANTS ................................................................................................................................... 32
SECTION 16. FLOW OF FUNDS ........................................................................................................................... 37
SECTION 17. PROVISIONS FOR FUTURE PARITY BONDS ......................................................................... 39
SECTION 18. SEPARATE UTILITY SYSTEMS ................................................................................................. 43
SECTION 19. CONTRACT RESOURCE OBLIGATIONS ................................................................................. 44
SECTION 20. FORM AND EXECUTION OF BONDS ........................................................................................ 46
SECTION 21. BOND REGISTRAR ....................................................................................................................... 48
SECTION 22. PRESERVATION OF TAX EXEMPTION FOR INTEREST ON BONDS ............................... 49
SECTION 23. DESIGNATION OF BONDS AS "QUALIFIED TAX-EXEMPT OBLIGATIONS .................. 50
SECTION 24. BONDS NEGOTIABLE .................................................................................................................. 51
SECTION 25. REFUNDING OR DEFEASANCE OF THE BONDS .................................................................. 51
SECTION 26. APPROVAL OF BOND PURCHASE CONTRACT .................................................................... 53
SECTION 27. PRELIMINARY OFFICIAL STATEMENT DEEMED FINAL ................................................. 54
SECTION 28. TEMPORARY BOND .................................................................................................................... 54
SECTION 29. UNDERTAKING TO PROVIDE CONTINUING DISCLOSURE ............................................. 55
SECTION 30. AMENDATORY AND SUPPLEMENTAL ORDINANCE .......................................................... 59
SECTION 31. DEFAULTS AND REMEDIES ........................................................................................................ 65
SECTION 32. PARTIES INTERESTED HEREIN ............................................................................................... 78
SECTION 33. EFFECTIVE DATE OF ORDINANCE ......................................................................................... 79
CITY OF AUBURN, WASHINGTON
ORDINA/~Cm. ~;0. 4945
AN ORDINANCE OF THE CITY OF AUBURN, WASHINGTON, RELATING TO
THE COMBINED WATER SUPPLY ~ DISTRIBUTION SYSTEM AND THE SANITARY
SEWAGE SYSTEMS; COMBINING THE STORM DRAINAGE/SURFACE SYSTEM WITH
THE EXISTING COMBINED SYSTEMS; SPECIFYING AND ADOPTING A SYSTEM OR
PLAI~ OF ADDITIONS TO AND BETTERMENTS ~ EXTENSIONS OF THAT
COMBINED UTILITY; PROVIDING FOR THE ISSUANCE OF $5,000,000 PAR
VALUE OF UTILITY SYSTEM REVENUE BONDS, 1997, OF THE CITY TO OBTAIN
THE FUNDS REQUIRED TO CARRY OUT THAT SYSTEM OR PLAN AND TO FUND A
RESERVE FOR AIqD TO PAY THE COSTS OF ISSUING THE BONDS; FIXING THE
DATE, FORM, MATURITIES, INTEREST RATES, TERMS AND COVENANTS OF THE
BONDS; CREATING CERTAIN FUNDS AND ACCOUNTS OF THE CITY AND
PROVIDING FOR THE DEPOSIT THEREIN OF BOND PROCEEDS AND OTHER MONEY
OF THE CITY; PROVIDING FOR BOND INSURANCE; AND APPROVING THE SALE
AND PROVIDING FOR THE DELIVERY OF THE BONDS TO SEATTLE-NORTHWEST
SECURITIES CORPORATION OF SEATTLE, WASHINGTON.
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25 W}{EREAS, the City of Auburn, Washington (the
26 owns, operates and maintains a water supply and
27 system and a sanitary sewage system, which
28 pursuant to RCW 35.67.320 by Ordinance
29 approved March 7, 1950, said combined systems,
30 additions thereto and betterments and extensions
31 time made,
"City"), now
distribution
systems were combined
No.. 961, passed and
including all
thereof at any
to be hereinafter referred to as the "Utility System of
32 the City" or "the "System"; and
Ordinance NO. 4945
February 18, 1997
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WHEREAS, pursuant to Ordinance No. 1379, the City issued its
$400,000 Water and Sewer Revenue Bonds, 1960, and by Section 13 of
Ordinance No. 1379, the City reserved the right to issue
additional water and sewer revenue bonds which would constitute a
lien and charge upon the gross revenues of the waterworks utility
of the City on a parity with
were met and complied with; and
WHEREAS, pursuant
$1,000,000 par value
"1972 Bonds"), of
outstanding; and
WHEREAS, the City,
those bonds if certain conditions
to Ordinance No. 2675, the City issued its
Water and Sewer Revenue Bonds, 1972 (the
which $595,000 par value presently are
by Ordinance No.
1986, established a storm drainage
Sanitary Sewer Utility; and
W-~EREAS, the City, by Ordinance
4193, passed December 5,
utility as a part of the
No. 4492, passed March 13,
1991,
Utility by repealing Auburn City Code Chapter 13.48
"Storm Drainage Utility" contained in Auburn City Code
separated the storm drainage utility from the Sanitary Sewer
entitled
Title 13
entitled "Water, Sewers and Public Utilities," and enacting a new
Auburn City Code Chapter 13.48 entitled "Storm Drainage Utility";
and
Ordinance No. 4945
February 18, 1997
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WHEREAS, the City now owns, operates and maintains a storm
drainage utility and the City desires to recombine such storm
drainage utility into the Utility System; and
WHEREAS, the City Council has determined that it is necessary
to issue and sell its $5,000,000
bonds to provide the funds
additions to and betterments
City; and
W/4EREAS, the MBIA Insurance
("Bond Insurer"), has made a
policy (the "Municipal Bond
par value utility system revenue
to carry out a system or plan of
and extensions to the System of the
Corporation of Armonk,
commitment to issue
Insurance Policy")
payment when due
provided therein,
purchase of the Municipal
interest o~ the City; and
to purchase those
forth herein; NOW,
as
of the principal of and interest on the
and the City Council of the City deems
Bond Insurance Policy is in
New York
an insurance
insuring the
Bonds as
that the
the best
WHEREAS,
bonds under the terms and conditions
THEREFORE,
THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON,
follows:
Section 1. ~. As used in this ordinance,
following meanings:
following words shall have the
Ordinance NO. 4945
February 19, 1997
Page 3
DO ORDAIN
the
Seattle-Northwest Securities Corporation has offered
as set
1 "Alternate Security" means any bond insurance, reserve
2 insurance, collateral, security, letter of credit, guaranty,
3 surety bond or similar credit enhancement device providing for or
4 securing the payment of all or part of the principal of and
5 interest on Parity Bonds, issued by an institution which has been
6 assigned a credit rating at the time of issuance of the Parity
7 Bonds, secured by such Alternate Security equal to or better than
8 the highest two rating categories by both Moody's Investors
9 Service, Inc., and Standard & Poor's. Alternate Security
10 includes, in lieu of cash and investments, insurance obtained by
11 the City equal to part or all of the Reserve Requirement for any
12 Parity Bonds then outstanding for which such insurance is
13 obtained.
14 "Annual Debt Service" for the applicable series of the Parity
15 Bonds for any calendar year means all the interest, plus all
16 principal (except principal of Term Bonds due in any Term Bond
17 Maturity Year), plus all mandatory redemption and sinking fund
18 installments for that year, less all bond interest payable from
19 the proceeds of any such bonds in that year.
20 "Assessment Bonds" shall mean the original principal amount
21 of any issue of bonds payable from the Bond Fund equal to the
Ordinance No. 4945
February 1~, 1997
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total principal amount (or, if refunding bonds, the remaining
unpaid principal amount) of ULID Assessments on any final
assessment roll or rolls of one or more ULIDs formed in connection
with the improvements being financed by such issue of bonds (or
bonds being refunded). The original
issue of bonds in excess of Assessment Bonds
as "bonds (or Bonds) that are not Assessment
principal amount of such
shall be referred to
Bonds." Assessment
Bonds shall be allocated to each $5,000 of bonds in proportion to
their percentage of the entire
issue of bonds containing
purchased, and retired, the
percentage of Assessment
bonds shall be treated
purchased and retired.
"Average Annual Debt
issue of bonds. When a bond of any
Assessment Bonds is redeemed or
same percentage of that bond as the
Bonds is to the total issue of those
as Assessment Bonds being redeemed or
Service" means, as of its date of
calculation, the sum of the Annual Debt Service for the remaining
calendar years to the last scheduled maturity of the applicable
issue or issues of bonds divided by the number of those years.
For purposes of computing the Reserve Requirement the estimated
amount of Bonds to be redeemed prior to maturity may be taken into
account if required under federal arbitrage regulations.
Ordinance NO. 4945
February 18, 1997
Page 5
1 "Bond Fund" means that special fund of the City known as the
2 Utility System Revenue Bond Fund created by Section 10 of this
3 ordinance for the payment of the principal of and interest on the
Insurance Corporation of
4 Parity Bonds.
5 "Bond Insurer" shall mean MBIA
6 Armonk, New York.
7 "Bond Register" means the
8 Registrar on which are recorded
9 Bonds.
10 "Bond Registrar" means either of the
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registration books of the Bond
the names of the owners of the
fiscal agencies of the
State of Washington located in Seattle, Washington, and New York,
New York, as the same may be designated from time to time.
"Bonds" means the $5,000,000 par value Utility System Revenue
Bonds, 1997, authorized to be issued by this ordinance.
Ordinance No. 4945
February 18, 1997
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"1972 Bonds" means
Bonds, 1972, issued for
Ordinance No. 2675.
City,
the outstanding Water and Sewer Revenue
the purposes provided in and pursuant to
"City" means the City of Auburn,
"Code" means the Internal
from time to time.
"Construction Accounts" means such accounts created
System Funds as the City Finance Director shall designate.
"Contract Resource Obligation" means an obligation of the
designated as a Contract Resource Obligation and entered
Washington.
Revenue Code of 1986, as amended
into pursuant to Section 19 of this
for water supply, sewer service,
transmission or other commodity or
entity (including without limitation a separate
created pursuant to Section 18 of this resolution).
"Coverage Requirement" in any calendar year
of Net Revenue of the System at least equal to 1.25 times
Annual Debt Service in that year on all bonds payable from
Bond Fund that are not Assessment Bonds.
in such
resolution, to make payments
water, sewage or stormwater
service to another person or
utility system
means an amount
the
the
Ordinance NO. 4945
February 19, 1997
Page 7
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"Finance Director" means the City Finance Director or the
officer that is the successor to substantially the functions and
duties of the Finance Director.
"Future Parity Bonds" means any and all utility system
revenue bonds of the City issued after the date of the issuance of
the Bonds, the payment of the principal of and interest on which
constitutes a charge or lien on the Gross Revenue of the System
and ULID Assessments equal in rank with the charge and lien upon
such revenue and assessments required to be paid into the Bond
Fund to pay and secure the payment of the principal of and
interest on the Bonds.
"Government Obligations" means direct obligations of or
obligations the principal of and interest on which are
unconditionally guaranteed by the United States of America.
Ordinance No. 4945
February 18, 1997
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"Gross Revenue of the System" or "Gross Revenue" means all of
the earnings and revenues received by the City from the
maintenance and operation of the System and all earnings~ from the
investment
in the Principal and
improvement charges
of money in the Bond Fund which earnings are deposited
Interest Account, and connection and capital
collected for the purpose of defraying the
cost of capital facilities of the System, except ULID Assessments,
government grants, proceeds from the sale of System property, City
taxes collected by or through the System,
bonds or other obligations and earnings
investments in a trust, defeasance
defease or refund System obligations
earnings and revenues of the System)
principal proceeds of
or proceeds from any
or escrow fund created to
(until commingled with other
or held in a special account
for the purpose of paying a rebate to the United States Government
under the Code, on earnings of a separate utility system that may
independent licensed
design, construction
comparable
certified public
be created under Section 18 of this ordinance.
"Independent Utility Consultant" means either (1) an
professional engineer experienced in the
or operation of municipal utilities of
size and character to the System, or (2) an independent
accountant or other professional consultant
Ordinance No. 4945
February 18, 1997
Page 9
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1 experienced in the development of rates and charges for municipal
2 utilities of comparable size and character to the System.
3 "Maintenance and Operation Expense" means all reasonable
4 expenses incurred by the City in causing the System to be operated
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and maintained in good repair, working
including without limitation payments made
corporation or private entity,
Obligations, and payments with
order and condition,
to any other municipal
payments under Contract Resource
respect to any other expenses of
the System that are properly treated as maintenance and operation
expenses under generally accepted accounting principles applicable
corporations. The term Maintenance and Operation
not include any depreciation or capital additions or
to municipal
Expense does
capital replacements to the System.
"Maximum Annual Debt Service" means
calculation, the maximum amount of Annual Debt
at the time of
Service that will
mature or come due in the current calendar year or any future year
on the outstanding Parity Bonds.
"Maximum Interest Rate" means, with respect to any Variable
Interest Rate Bond, a numerical rate of interest, set forth in the
ordinance authorizing the Future Parity Bonds, that is the maximum
rate of interest those Future Parity Bonds may bear at any time.
Ordinance NO. 4945
February 18, 1997
Page 10
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1 "Municipal Bond Insurance Policy" shall mean the municipal
2 bond insurance policy issued by the Bond Insurer insuring the
3 payment when due of the principal of and interest on the Bonds as
4 provided therein.
5 "Net Revenue of the System"
Revenue less (1) Maintenance and
into the Rate Stabilization Fund,
of the property of the System,
Stabilization Fund.
or "Net Revenue" means the Gross
Operation Expense, (2) deposits
and (3) proceeds from the sale
and plus withdrawals from the Rate
"Parity Bonds" means the Bonds and Future Parity Bonds.
"Plan of Additions" means the system or plan of additions and
improvements to and betterments and extensions of the System
specified, adopted and ordered to be carried out by Section 3 of
this ordinance.
"Principal and Interest Account" means the account of that
name created in the Bond Fund for the payment of the principal of
and interest on the Parity Bonds.
"Prior Lien Bonds" means the outstanding 1972 Bonds.
"Rate Stabilization Fund" means the Utility System Rate
Stabilization Fund created in Section 11 of this ordinance.
Ordinance No. 4945
Pebruary 18, 1997
Page 11
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"Reserve Account" means the account of that name created in
the Bond Fund for the purpose of securing the payment of the
principal of and interest on the Bonds and any Future Parity
Bonds.
"Reserve Requirement" means:
For all bonds payable from the Bond Fund, the
lesser of (i) Maximum Annual Debt Service on those
bonds and (ii) 125% of Average Annual Debt Service on
those bonds, but at no time shall the Reserve
Requirement exceed 10% of the proceeds of those bonds.
For purposes of calculating the Reserve
Requirement for Future Parity Bonds (including any
Future Parity Bonds proposed to be issued), Variable
Interest Rate Bonds shall be assumed to bear interest
at a fixed rate equal to the higher of (1) the highest
variable rate borne during the preceding 24 months by
any outstanding variable rate revenue bonds of the
System or, (2) if no such Variable Interest Rate Bonds
are outstanding at the time of calculation, the rate
borne by other variable rate debt the interest rate for
which is determined by reference to an index comparable
to the index to be used to determine the interest rate
on the Future Parity Bonds proposed to be issued.
Notwithstanding the above, the deposit to be made
in the Reserve Account shall be decreased for any issue
of bonds payable from the Bond Fund when and to the
extent that the City provides for an Alternate Security
to secure the payment of the principal of and interest
on that issue of bonds. The amount payable under any
Alternate Security shall be credited against the amount
otherwise required to be made into the Reserve Account
to meet the Reserve Requirement for that issue of
bonds.
Ordinance No. 4945
February 18, 1997
Page 12
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1 "System" or "Utility System" means the City's existing
2 combined water supply and distribution system, sanitary sewage
3 system, storm and surface water utility, together with all
4 additions thereto and betterments and extensions thereof at any
5 time made or constructed, and shall include any utility systems
hereafter combined with the System. The System shall not include
any water supply or service or other facilities that may be
created, acquired or constructed by the City as a separate utility
system as provided in Section 11 of this ordinance.
"System Funds" means, collectively, the Water Fund, Sewer
Fund and Storm Drainage Fund of the System and Construction
Accounts.
"Term Bond Maturity Year" means any calendar year in which
Term Bonds are scheduled to mature.
"Term Bonds" means the Bonds maturing in the year 2016 and
any Future Parity Bonds of any single issue or series d.esignated
as such in the ordinance authorizing their issuance or sale.
"ULID" means Utility Local Improvement District.
"ULID Assessments" means all assessments levied and collected
in any ULID of the City created for the acquisition or
construction of additions to and extensions and betterments of the
Ordinance No. 4945
February 18, 1997
Page i3
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System if such assessments are pledged to be paid intc. the Bond
Fund (less any prepaid assessments paid or to be paid into a
construction fund or account). ULID Assessments shall include
installments thereof and any interest or penalties that may be due
thereon.
"Variable Interest Rate" means a variable interest rate or
rates to be borne by a series of Future Parity Bonds or any one or
more maturities within a series of Future Parity Bonds. The
method of computing such a variable interest rate shall be
specified in the ordinance authorizing such Future Parity Bonds,
which ordinance also shall specify either (i) the particular
period or periods of time or manner of determining such period or
periods of time for which each value of such variable interest
rate shall remain in effect or (ii) the time or times upon which
any change in such variable interest rate shall become effective.
"Variable Interest Rate Bonds" means, for any period, of time,
Future Parity Bonds which bear a Variable Interest Rate during
that period, except that Future Parity Bonds the interest rate or
rates on which shall have been fixed for the remainder of the term
thereof no longer shall be deemed to be Variable Interest Rate
Bonds.
Ordinance NO. 4945
February 18, 1997
Page 14
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1 Section 2. Combinina of Utilities. The City hereby combines
2 the City's storm drainage utility with the City's existing
3 combined water supply and distribution system and sanitary sewage
4 system, pursuant to RCW 35.67.331.
5 Section 3. Adoption of Plan of Addition~. The City
6 specifies, adopts and orders the carrying out of the system or
7 plan of additions to and betterments and extensions of the System
as set forth in Exhibit A, attached hereto and by this reference
made a part hereof (the "Plan of Additions").
The City may modify the details of the Plan of Additions
where, in its judgment, it appears advisable if such modifications
do not substantially alter the purposes of that plan.
The estimated cost of the acquisition, construction and
financing of the Plan of Additions, including the costs of
issuance and sale of the Bonds and funding a reserve therefor, is
declared to be approximately $8,000,000, which costs shall be paid
from the proceeds of the Bonds authorized in this ordinance,
together with other money of the City.
Section 4. Description of Bo~-. For the purpose of paying
costs of carrying out the Plan of Additions, funding the Reserve
Requirement and paying the costs of issuance and sale of the
Bonds, the City shall issue the Bonds in the principal amount of
Ordinance No. 4945
February 18, 1997
Page 15
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$5,000,000. The Bonds shall be designated Utility System Revenue
Bonds, 1997; shall be dated March 1, 1997; shall be in the
denomination of $5,000 or any integral multiple thereof within a
single maturity; shall be numbered separately in the manner and
with any additional designation as the Bond Registrar
(collectively, the fiscal agencies of the State of Washington
located in Seattle, Washington, and New York, New York) deems
8 necessary for purposes of identification; shall bear interest
9 (computed on the basis of a 360-day year of twelve 30-day months)
10 payable semiannually on each May 1 and November 1, commencing
11 May 1, 1997, to the maturity or earlier redemption of the Bonds;
12 and shall mature on November 1 in years and amounts and bear
13 interest at the rates per annum as follows:
14 Maturity
15 ~
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17 1997
18 1998
19 1999
20 2000
21 2001
22 2002
23 2003
24 2004
25 2005
26 2006
27 2007
28 2008
29 2009
30 2010
Interest
215,000
150,000
155,000
165,000
180,000
185 000
195 000
205 000
220 000
230 000
245 000
255 000
270,000
280,000
6.00%
6.00
6.00
6.00
5.25
5.25
5.25
5.50
5.50
5.50
5.50
4.90
5.00
5.15
Ordinance No. 4945
Februa~ 18, 1997
Page 16
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2011 300,000 5.25
2012 320,000 5.30
2013 330,000 5.30
2016 1,100,000 5.45
Section 5. Registration and Transfer of Bond,. The Bonds
shall be issued only in registered form as to both principal and
interest and shall be recorded on books or records maintained by
the Bond Registrar (the "Bond Register").
shall contain the name and mailing address
Bond and the principal
held by each owner.
The Bond Register
of the owner of each
amount and number of each of the Bonds
Bonds surrendered to the Bond Registrar may be exchanged for
Bonds in any authorized denomination of an equal aggregate
principal amount and of the same interest rate and maturity.
Bonds may be transferred only if endorsed in the manner provided
thereon and surrendered to the Bond Registrar. Any exchange or
transfer shall be without cost to the owner or transferee. The
Bond Registrar shall not be obligated to exchange or
Bond during the 15 days preceding any principal
redemption date.
The Bonds initially shall be registered in the name of CEDE &
as the nominee of The Depository Trust Company, New York, New
transfer any
payment or
Ordinance No. 4945
February 18, 1997
Page 17
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York ("DTC"). The Bonds so registered shall be held[ in fully
immobilized form by DTC as depository in accordance with the
provisions of a Blanket Issuer Letter of Representations dated
February 18, 1997, between the City and DTC (the '~'Letter of
Representations). To induce DTC to accept the Bonds as eligible
for deposit at DTC, the City approves the Letter of
Representations. The Finance Director of the City is authorized
and directed to execute and deliver the Letter of Representations,
on behalf of the City, to DTC on or before the date of delivery of
the Bonds to the purchaser thereof and the payment
such changes as the Finance Director of the City
the best interests of the City, and her execution
the Letter of Representations shall evidence
approval of the Letter of Representations
the City nor the Bond Registrar shall have
therefor, with
deems to be in
and delivery of
irrevocably the
by the City. Neither
any responsibility or
obligation to DTC participants or the persons for whom they act as
nominees with respect to the Bonds regarding accuracy of any
records maintained by DTC or DTC participants of any amount in
respect of principal of or interest on the Bonds, or any notice
which is permitted or required to be given to registered owners
Ordinance No. 4945
February 18, 1997
Page 18
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hereunder (except such notice as is required to be given by the
Bond Registrar to DTC).
For so long as any Bonds are held in fully immobilized form,
DTC or its successor depository shall be deemed to be the
registered owner for all purposes hereunder and all references to
registered owners, bondowners, bondholders or the like shall mean
DTC or its nominees and shall not mean the owners of any
beneficial interests in the Bonds. Registered ownership of such
Bonds, or any portions thereof, may not thereafter be transferred
except: (i) to any successor of DTC or its nominee, if that
successor shall be qualified under any applicable laws to provide
the services proposed to be provided by it; (ii) to any substitute
depository,
depository appointed by the City or
successor; or (iii) to any person if
in immobilized form.
Upon the resignation of DTC or its successor (or any
substitute depository or its successor) from its functions as
or a determination by the City that it no longer
such substitute depository's
the Bonds are no longer held
wishes to continue the system of book entry transfers through DTC
or its successor (or any substitute depository or its successor),
the City may appoint a substitute depository. Any such substitute
Ordinance No. 4945
February 18, 1997
Page 19
1 depository shall be qualified under any applicable
2 the services proposed to be provided by it.
3 If (i)
4 successor)
5 substitute depository can be obtained, or
6 that the Bonds are to be in certificated
laws to provide
DTC or its successor
resigns from its functions as
(ii)
form,
(or substitute depository or its
depository, and no
the City determines
the ownership of
7 Bonds may be transferred to any person as provided herein and the
8 Bonds no longer shall be held in fully immobilized form.
9 Section 6. ~. Both principal of and interest
10 on the Bonds shall be payable in lawful money of the United
11 States of America. Interest on the Bonds shall be paid by checks
12 or drafts of the Bond Registrar mailed on the interest payment
13 date to the registered owners at the addresses appearing on the
14 Bond Register on the 15th day of the month preceding the interest
15 payment date. Principal of the Bonds shall be payable upon
16 presentation and surrender of the Bonds by the registered owners
17 at either of the principal offices of the Bond Registrar at the
18 option of the owners. Notwithstanding the foregoing, as long as
19 the Bonds are registered in the name of DTC or its nominee,
20 payment of principal of and interest on the Bonds shall be made
21 in the manner set forth in the Letter of Representations.
Ordinance No. 4945
~ebruary 18, 1997
Page 20
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1 Section 7. Optional Redemption. ~.~dator~_ Redemntlon and
2 Open Market Purchase of BOD~-. Bonds maturing in the years 1997
3 through 2007, inclusive, shall be issued without the right or
4 option of the City to redeem those Bonds prior to their stated
5 maturity dates. The City reserves the right and option to redeem
6 Bonds maturing on or after November 1, 2008, prior to ti~eir
stated maturity dates on or after November 1, 2007, as a whole or
in part at any time within one or more maturities selected by the
City (and by lot within a maturity in such manner as the Bond
Registrar shall determine),
date fixed for redemption.
Bonds maturing in 2016 are
under the optional redemption
at par plus accrued interest to the
Term Bonds and, if not redeemed
provisions set forth above or
purchased in the open market under the provisions set forth below,
shall be called for redemption by lot (in such manner as the Bond
Registrar shall determine) at par plus accrued interest on
November 1 in years and amounts as follows:
Mandatory
Redemption
Years
Mandatory
Redemption
2014
2015
2016
$ 350,000
365,000
385,000
Ordinance No. 4945
Febx~/ary 18, 1997
Page 21
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1 If the City shall redeem Term Bonds under the optional
2 redemption provisions set forth above or purchase Term Bonds in
3 the open market as set forth below, the par amount of the Term
4 Bonds so redeemed or purchased (irrespective of their actual
5 redemption or purchase prices) shall be credited against one or
6 more scheduled mandatory redemption amounts for those Term Bonds
(as allocated by the City) beginning not earlier than 60 days
after the date of the optional redemption or purchase, and the
City shall promptly notify the Bond Registrar in writing of the
manner in which the credit for the Term Bonds so redeemed or
purchased has been allocated.
Portions of the principal amount of any Bond, in installments
of $5,000 or any integral multiple thereof, may be redeemed. If
less than all of the principal amount of any Bond is redeemed,
upon surrender of that Bond at either of the principal offices of
the Bond Registrar, there shall be issued to the registered owner,
without charge therefor, a new Bond (or Bonds, at the option of
the registered owner) of the same maturity and interest rate in
any of the denominations authorized by this ordinance in the
aggregate principal amount remaining unredeemed.
Ordinance NO. 4945
Februar~ 18, 1997
Page 22
1 The City further reserves the right and option to purchase
2 any or all of the Bonds in the open market at any time at any
3 price acceptable to the City plus accrued interest to the date of
4 purchase.
5 All Bonds purchased or redeemed under this section shall be
6 canceled.
Notwithstanding the foregoing, for so long as the Bonds are
registered in the name of Cede & Co., as nominee of DTC, selection
of Bonds for redemption shall be in accordance with the Letter of
Representations.
Section 8. Notice of Redemption. The City shall cause
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12 notice of any intended redemption of Bonds to be given not less
13 than 30 nor more than 60 days prior to the date fixed for
14 redemption by first-class mail, postage prepaid, to the
15 registered owner of any Bond to be redeemed at the address
16 appearing on the Bond Register at the time the Bond Registrar
17 prepares the notice, and the requirements of this sentence shall
18 be deemed to have been fulfilled when notice has been mailed as
19 so provided, whether or not it is actually received by the owner
20 of any Bond. Interest on Bonds called for redemption shall cease
21 to accrue on the date fixed for redemption unless the Bond or
22 Bonds called are not redeemed when presented pursuant to the
Ordinance NO. 4945
February 18, 1997
Page 23
1 call. In addition, the redemption notice shall be mailed within
2 the same period, postage prepaid, to Moody's Investors Service,
3 Inc., and Standard & Poor's at their offices in New York, New
4 York, or their successors, to Seattle-Northwest Securities
5 Corporation, at its principal office in Seattle, Washin!~ton, or
6 its successor, the Bond Insurer at its principal office in
7 Armonk, New York, and to such other persons, including registered
8 securities depositories, and with such additional information as
9 the City Finance Director shall determine, but these additional
10 mailings shall not be a condition precedent to the reder~tion of
11 Bonds. Notwithstanding the foregoing, for so long as the Bonds
12 are registered in the name of Cede & Co., as nominee of DTC,
13 notice of redemption shall be given in accordance with the Letter
14 of Representations.
15 Section 9. Failure to Redeem Bon~. If any Bond is not
16 redeemed when properly presented at its maturity or call date,
17 the City shall be obligated to pay interest on that Bond at the
18 same rate provided in the Bond from and after its maturity or
19 call date until that Bond, both principal and interest, is paid
20 in full or until sufficient money for its payment in full is on
21 deposit in the bond redemption fund hereinafter created and the
Ordinance No. 4945
February 18, 1997
Page 24
issue
Except
Account
1 Bond has been called for payment by giving notice of that call to
2 the registered owner of each of those unpaid Bonds.
3 Section 10. Creation of and Payments into B~ F~,~. There
4 is created in the office of the Finance Director a special fund
5 to be known as the Utility System Revenue Bond Fund (the "Bond
6 Fund"), which fund shall be divided into two accounts: the
7 Principal and Interest Account and the Reserve Account. So long
8 as any Bonds are outstanding against the Bond Fund, the City
9 shall set aside and pay into the Bond Fund all ULID Assessments
10 on their collection and, out of the Net Revenue of the System,
11 certain fixed amounts without regard to any fixed proportion,
12 namely:
13 (a) Into the Principal and Interest Account on or
14 before each interest and principal and interest pa~ent
15 date, an amount, together with other money on deposit
16 therein, sufficient to pay the next ensuing interest or
17 principal and interest requirements on the Bonds; and
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19 (b) Into the Reserve Account from Bond proceeds
20 and other money of the City at closing an amount equal
21 to the Reserve Requirement.
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23 The Reserve Account may be divided into subaccounts for each
24 of bonds remaining outstanding payable from the Bond Fund.
25 for withdrawals therefrom as authorized herein, the Reserve
26 and all subaccounts shall be maintained at the Reserve
Ordinance NO. 4945
February 18, 1997
Page 25
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Requirement amount for all bonds payable from the Bond Fund at all
times so long as any of the Parity Bonds are outstanding. When
the total amount in the Bond Fund shall equal the total amount of
principal and interest for all outstanding bonds payable out of
the Bond Fund to the last maturity thereof, no further payment
need be made into the Bond Fund. Notwithstanding the second
sentence of this paragraph, the amounts in any subaccount in the
Reserve Account may be decreased for the Bonds or any issue of
Future Parity Bonds when and to the extent the City has provided
for the Reserve Requirement by means of Alternate Security.
If there shall be a deficiency in the Principal and Interest
Account in the Bond Fund to meet maturing installments of either
principal or interest, as the case may be, that deficiency shall
be made up ratably from the Reserve Account and its subaccounts
based on the amount of the total Reserve Requirement to be paid
into each subaccount (except when Alternative Security requires
all cash and investments in the Reserve Account be withdrawn
before draws on the Alternate Security) by the withdrawal of cash
therefrom for that purpose. Any deficiency created in the Reserve
Account and its subaccounts by reason of any such withdrawal shall
then be made up from ULID Assessment payments and the Net Revenue
Ordinance No. 4945
February 18, 1997
Page 26
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1 of the System first available after making necessary provisions
2 for the required payments into the Principal and Interest Account.
3 The money in the Reserve Account and its subaccounts otherwise
4 shall be held intact and may be applied against the last
5 outstanding bonds payable out of the Bond Fund, except that if the
6 Reserve Account and any of its subaccounts are fully funded, money
Reserve Requirement shall
in excess of the be withdrawn and
deposited, first, in any subaccount having a deficiency in its
Reserve Requirement, and second, at the option of tke Finance
Director, either in the Principal and Interest Account and spent
for the purpose of retiring bonds payable from the Bond ]Fund or in
any of the System Funds and spent for other lawful System
purposes.
The City may provide for the purchase, redemption or
defeasance of bonds payable from the Bond Fund by the use of money
on deposit in any account in the Bond Fund as long as the money
remaining in those accounts is sufficient to satisfy the required
deposits in those accounts for the remaining bonds outstanding
payable from the Bond Fund.
Ail money in the Bond Fund may be kept in cash or invested in
legal investments maturing not later than the date when the funds
Ordinance NO. 4945
February 18, ~997
Page 27
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are required for the payment of principal of or interest on the
outstanding bonds payable from the Bond Fund (for investments in
the Principal and Interest Account) or having a guaranteed
redemption price prior to maturity and, in no event, maturing
later than the last maturity of any remaining outstanding bonds
payable from the Bond Fund (for investments in the Reserve
Account). Earnings from investments in the Principal and Interest
Account shall be deposited in that account. Income from
investments in the Reserve Account shall be deposited in that
account.
The City may create sinking fund accounts or other accounts
or subaccounts in the Bond Fund for the payment or securing the
payment of bonds payable from the Bond Fund as long as the
maintenance of such accounts does not conflict with the rights of
the owners of bonds payable from the Bond Fund.
If the City fails to set aside and pay into the Bond[ Fund the
amounts set forth above, the owner of any of the outstandling bonds
payable out of the Bond Fund may bring action against the City and
compel such setting aside and payment.
Section 11. Rate Stabilization F,,~. There is hereby
established a Utility System Rate Stabilization Fund. The City
may at any time, as determined by the City and as consistent with
Ordinance NO. 4945
February 18, 1997
Page 28
1 Section 16 of this ordinance, deposit in the Rate Stabilization
2 Fund Gross Revenue and any other money received by the System and
3 available to be used therefor, excluding principal proceeds of
4 any Future Parity Bonds or other borrowing. The City may, upon
5 authorization by ordinance, at any time withdraw money from the
6 Rate Stabilization Fund for inclusion in the Net Revenue for the
7 current fiscal year of the System, except that the total amount
8 withdrawn from the Rate Stabilization Fund in any fiscal year of
9 the System may not exceed the total debt service of the System in
10 that year. Such deposits or withdrawals may be made up to and
11 including the date 90 days after the end of the fiscal year for
12 which the deposit or withdrawal will be included as Net Revenue
13 for that fiscal year.
14 Earnings from investments in the Rate Stabilization Fund
15 shall be deposited in that fund and shall not be included as Net
16 Revenue of the System unless and until withdrawn from that fund as
17 provided herein. The City may also deposit earnings from
18 investments in the Rate Stabilization Fund into any System fund as
19 authorized by ordinance, and such deposits shall be included as
20 Net Revenue in the year of deposit.
Ordinance No. 4945
February 18, 1997
Page 29
1 No
2 Stabilization
3 the City from
4 fiscal year.
5 Section 12.
6
deposit of Gross Revenue shall be made into the Rate
Fund to the extent that such deposit would prevent
meeting the Coverage Requirement in the relevant
Findina as to Sufficiency of Revenue. Pledae of
Revenue and Lien Posit~nn. The City Council finds and determines
7 that the Gross Revenue and benefits to be derived from the
8 operation and maintenance of the System at the rates to be
9 charged for services from the System will be more than sufficient
10 to meet all Maintenance and Operation Expense and to permit the
11 setting aside into the Bond Fund out of the Gross Revenue of
12 amounts sufficient to pay the principal of and interest on the
13 Bonds when due. The City Council declares that in fixing the
14 amounts to be paid into the Bond Fund under this ordinance it has
15 exercised due regard for Maintenance and Operation Expense and
16 has not obligated the City to set aside and pay into the Bond
17 Fund a greater amount of Gross Revenue of the System than in its
18 judgment will be available over above such Maintenance and
19 Operation Expense.
20 The Net Revenue of the System and ULID Assessments are
21 pledged to the payment of the Parity Bonds, and the Parity Bonds
Ordinance No. 4945
February 18, 1997
Page 30
1 shall constitute a lien
2 Assessments prior and superior to
3 subject only to the prior lien and
4 the outstanding Prior Lien Bonds.
5
and charge upon such Net Revenue and ULID
any other charges whatsoever,
charge on the Net Revenue of
Section 13. Deposit of Bond Proeeg~-. The accrued interest
6 received from the purchaser of the Bonds shall be deposited in
7 the Principal and Interest Account of the Bond Fund and used to
8 pay interest on the Bonds on their first interest payment date.
9 Principal proceeds of the Bonds, together with other money of the
10 City, in an amount equal to the Reserve Requirement for the Bonds
11 shall be deposited in the Reserve Account. The remaining
12 principal proceeds of the Bonds shall be deposited in such
13 Construction Accounts as the Finance Director shall designate and
14 used to pay the costs of carrying out the Plan of Additions and
15 the costs of issuance and sale of the Bonds. Money on deposit in
16 the Construction Accounts may be invested and the investment
17 earnings retained in the Construction Accounts and used for the
18 purposes of those accounts.
19 Section 14. Revocation of Right to Issue Prior Lien Bonn..
20 The right of the City to issue bonds on a parity of lien with the
21 Prior Lien Bonds in accordance with Section 13 of Ordinance
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No. 1379 is permanently revoked.
Ordinance No. 4945
February 18, 1997
Page 31
1 Section 15. g~iY_~D~BJL~. The City covenants and agrees with
the owner of each Bond at any time outstanding, as follows:
(a) 2L~. Ail ULID Assessments 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 Parity Bonds,
without those ULID Assessments, being particularly
allocated to the payment of the principal of and
interest on any particular issue of bonds.
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11 (b) Maintenance and Operation. It will at all
12 times maintain, preserve and keep the properties of the
13 System in good repair, working order and condition,
14 will make all necessary and proper additions,
15 betterments, renewals and repairs thereto, and
16 improvements, replacements and extensions thereof, and
17 will at all times operate or cause to be operated the
18 properties of the System and the business in connection
19 therewith in an efficient manner and at a reasonable
20 cost.
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22 (c) Establishment and Collection of Rates and
23 ~g_~. It will establish, maintain and collect rates
24 and charges for all services and facilities provided by
25 the System which will be fair and nondiscriminatory,
26 and will adjust those rates and charges from time to
27 time so that:
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29 (1) The Gross Revenue of the System will at
30 all times be sufficient to (i) pay all Maintenance
31 and Operation Expense on a current basis, (ii) pay
32 when due all amounts that the City is obligated to
33 pay into the Bond Fund and the accounts therein,
34 (iii) pay all taxes, assessments or other
35 governmental charges lawfully imposed on the
36 System or the revenue therefrom or payments in
37 lieu thereof and any and all other amounts which
38 the City may now or hereafter become obligated to
39 pay from the Gross Revenue of the System by law or
40 contract;
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Ordinance No. 4945
February 18, 1997
Page 32
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(2) The Net Revenue of the System (together
with any ULID Assessment collections) in each
calendar year will be at least equal to the
Coverage Requirement.
To the extent allowable by law, those to which service
of the System is available will be charged for that
service at the prevailing rate within 30 days of the
availability of that service.
(d) Sale or Disposition of the System. It will
not sell or otherwise dispose of the System in its
entirety unless, simultaneously with such sale or other
disposition, all Parity Bonds are redeemed and retired,
or defeased pursuant to the provisions of this
ordinance.
It will not sell, lease, mortgage or in any manner
encumber or otherwise dispose of any part of the
System, including all additions and improvements
thereto and extensions thereof at any time made, that
are used, useful or material in the operation of the
System (each, as used in this subparagraph, a
"transfer"), unless provision is made for the
replacement thereof or for payment into the Bond Fund
of the greatest of the following:
(1) An amount which will be in the same
proportion to the net amount of Parity Bonds then
outstanding (defined as the total amount of those
bonds less the amount of cash and investments in
the Bond Fund and accounts therein) that the Gross
Revenue of the System from the portion of the
System sold or disposed of for the preceding year
bears to the total Gross Revenue of the System for
that period; or
(2) An amount which will be in the same
proportion to t~e net amount of Parity Bonds then
outstanding (as defined above) that the Net
Revenue from the portion of the System sold or
disposed of for the preceding year bears to the
Ordinance No. 4945
February 18, 1997
Page 33
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total Net Revenue of the System for such period;
or
(3) An amount which will be in the same
proportion to the net amount of Parity Bonds then
outstanding (as defined above) that the cost of
the assets sold or disposed of (less depreciation)
bears to the cost of the assets of the entire
System (less depreciation) immediately prior to
such sale or disposition.
(4) An amount which will be in the same
proportion to the net amount of Parity Bonds then
outstanding (as defined above) that the number of
customers served by the portion of the System sold
or disposed bears to the number of customers
served by the entire System prior to such sale or
disposition.
Before any such transfer under this subparagraph
with respect to greater than 5% of the total assets of
the System (measured by cost of the assets less
depreciation), the City must obtain a certificate of an
Independent Utility Consultant to the effect that in
his or her professional opinion, upon such transfer of
assets, the remaining System will retain its
operational integrity and the Net Revenue of the System
will be at least equal to the Coverage Requirement
during the 5 fiscal years following the fiscal year in
which the transfer is to occur, taking into account,
(1) the reduction in revenue resulting from the
transfer; (2) the use of any proceeds of the transfer
for the redemption of Parity Bonds, (3) the Independent
Utility Consultant's estimate of revenue from customers
anticipated to be served by any additions to and
betterments and extensions of the System financed in
part by ~he proposed portion of the proceeds of the
transfer.
Notwithstanding any other provision of this
subsection, (1) the City in its discretion may sell or
otherwise dispose of any of the works, plant,
properties or facilities of the System or any real or
Ordinance NO. 4945
February 18, 1997
Page 34
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personal property comprising a part of the same which
shall have become unserviceable, inadequate, obsolete
or unfit to be used in the operation of the System, or
no longer necessary, material to or useful to the
operation of the System, without making any deposit
into the Bond Fund, (2) the City may transfer the
System to another municipal corporation so long as ULID
Assessments and Net Revenue with respect to the portion
of the System so transferred are used for payment of
debt service on Parity Bonds prior to any other
purpose, or (3) the City in its discretion may carry
12 out such a transfer if the aggregate cost of the
13 facilities, property or other assets (less
14 depreciation) being transferred under this subparagraph
15 comprises no more than 5% of the costs of all of the
16 assets of the System (less depreciation).
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18 (e) Liens Upon the System. It will not at any
19 time create or permit to accrue or to exist any lien or
20 other encumbrance or indebtedness upon the Gross
21 Revenue of the System, or any part thereof, prior or
22 superior to the lien thereon for the payment of Parity
23 Bonds, and will pay and discharge, or cause to be paid
24 and discharged, any and all lawful claims for labor,
25 materials or supplies which, if unpaid, might become a
26 lien or charge upon the Gross Revenue of the System, or
27 any part thereof, prior to or superior to the lien of
28 the Parity Bonds, or which might impair the security of
29 the Parity Bonds.
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31 (f) Books and Accounts. It will keep proper
32 books, records and accounts with respect to the
33 operations, income and expenditures of the System in
34 accordance with proper accounting procedures and any
35 applicable rules and regulations prescribed by the
36 State of Washington. It will prepare annual financial
37 and operating statements within 270 days of the close
38 of each fiscal year showing in reasonable detail the
39 financial condition of the System as of the close of
40 the previous year, and the income and expenses for such
41 year, including the amounts paid into the Bond Fund and
42 into any and all special funds or accounts created
43 pursuant to the provisions of this ordinance, the
Ordinance NO. 4945
February 18, 1997
Page 35
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status of all funds and accounts as of the end of such
year, and the amounts expended for maintenance,
renewals, replacements and capital additions to the
System. Such statements shall be sent to the owner of
any Parity Bonds upon written request therefor being
made to the City.
(g) ~Q~. Except to aid the poor or
infirm, to provide for resource conservation or to
provide for the proper handling of hazardous materials,
it will not furnish or supply or permit the furnishing
or supplying of any service or facility in connection
with the operation of the System free of charge to any
person, firm or corporation, public or private, other
than the City, so long as any Parity Bonds are
outstanding.
(h) Collection of Delinquent Account~. On at
least an annual basis, it will determine all accounts
that are delinquent and will take all necessary action
to enforce payment of such accounts against those
property owners whose accounts are delinquent.
(i) Fire and Extended Coverage Insura~¢m. It
will carry the types of insurance on its System
properties in the amounts normally carried by private
water, sewer and storm drainage utility companies
engaged in the operation of water, sewer and storm
drainage systems, and the cost of such insurance shall
be considered a part of Maintenance and Operation
Expense, or it will implement and maintain a self-
insurance program or an insurance pool program with
reserves adequate, in the reasonable judgment of the
City, to protect the owners of the Parity Bonds against
loss.
(j) Condemnation Awards. Any condemnation awards
received by the City in excess of 1% of cost of the
assets of the System (less depreciation) shall be
applied, to one or more of the following: in (1) to the
damaged property, (2) to retiring bonds, and (3) to
improvements of the System.
Ordinance No. 4945
February 18, 1997
Page 36
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Section 16. ~. The Gross Revenue of the System
shall be deposited in the System Funds and used for the following
purposes only in the following order of priority:
(a) To pay Maintenance and Operation Expense;
(b) To pay principal of and interest on the Prior
Lien Bonds;
(c) To pay, together with ULID Assessments, the
principal of and interest on any Parity Bonds when due
or as the principal is required to be paid and to make
all payments required to be made into any mandatory
redemption or sinking fund account created to provide
for the payment of the principal of Term Bonds;
(d) To make, together with O-LID Assessments, all
payments required to be made into the Reserve Account
or its subaccounts and to make all payments required to
be made pursuant to a reimbursement agreement in
connection with an Alternate Security, except that if
there is not sufficient money to make all payments
under reimbursement agreements, the payments will be
made on a pro rata basis;
(e) To make all payments required to be made into
any revenue bond, note, warrant or other revenue
obligation redemption fund, debt service account or
reserve account created to pay or secure the payment of
the principal of and interest on any revenue bonds,
notes, warrants or other obligations of the City having
a lien upon the revenue of the System subordinate to
the lien thereon for the payment of the principal of
and interest on any Parity Bonds;
(f) To make necessary additions, betterments and
improvements and repairs to or extensions and
replacements of the System, to retire by redemption or
purchase in the open market any outstanding revenue
obligations or other obligations of the System, to make
Ordinance No. 4945
February 18, 1997
Page 37
1
2
3
4
5 the
6 funds, refunding escrow funds,
7 meet
8
deposits into the Rate Stabilization Fund, or to
provide for any other lawful City purpose.
The City may transfer any money from any funds or accounts of
System legally available therefor, except bond redemption
defeasance or other trust funds, to
the required payments to be made into the Bond Fund.
Section 17. Provisions for Future Parity B~. The City
to issue Future Parity Bonds if the following
and complied with at the time of the issuance
no deficiency in the Bond
9 reserves the right
10 conditions are met
11 of those Future Parity Bonds:
12 (a) There shall be
13 Fund.
14
15 (b) The ordinance providing for the issuance of
16 the Future Parity Bonds shall provide that all
17 assessments and interest thereon that may be levied in
18 any ULID created for the purpose of paying, in whole or
19 in part, the principal of and interest on those Future
20 Parity Bonds, shall be paid directly into the Bond
21 Fund, except for any prepaid assessments permitted by
22 law to be paid into a construction fund or account.
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24
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26
27
28
29
30
31
32
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35
(c) The ordinance providing for the issuance of
those Future Parity Bonds shall provide for the payment
of the principal thereof and interest thereon out of
the Bond Fund.
(d) The ordinance providing for the issuance of
such Future Parity Bonds shall provide for the deposit
into the Reserve Account or a subaccount therein of (i)
an amount equal to the Reserve Requirement for those
Future Parity Bonds from the Future Parity Bond
proceeds or other money legally available, or
(ii) Alternate Security or an amount plus Alternate
Ordinance No. 4945
February 18, 1997
Page 38
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2
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Security equal to the Reserve Requirement for those
Future Parity Bonds, or (iii) to the extent that the
Reserve Requirement is not funded from Future Parity
Bond proceeds, other legally available money or
Alternate Security at the time of issuance of those
Future Parity Bonds, within five years from the date of
issue of the Future Parity Bonds from ULID Assessments,
if any, levied and first collected for the payment of
the principal of and interest on those Future Parity
Bonds and, to the extent that ULID Assessments are
insufficient, then from the Net Revenue of the System
in five approximately equal annual payments. No
Alternate Security may be used to satisfy the Reserve
Requirement for Future Parity Bonds unless (i) the
Alternate Security is non-cancelable and (ii) the
insurer or provider of the Alternate Security as of the
time of issuance of such Alternate Security is rated in
the highest two rating categories by both Moody's
Investors Service, Inc., and Standard & Poor's.
(e) The ordinance authorizing the issuance of
such Future Parity Bonds shall provide for the payment
of mandatory redemption or sinking fund requirements
into the Bond Fund for any Term Bonds to be issued and
for regular payments to be made for the payment of the
principal of such Term Bonds on or before their
maturity, or, as an alternative, the mandatory
redemption of those Term Bonds prior and up to their
maturity date from money in the Principal and Interest
Account.
(f) There shall be on file from an Independent
Utility Consultant, a certificate showing that in his
or her professional opinion, based on any 12
consecutive calendar months out of the immediately
preceding 24 calendar months, the Net Revenue of the
System (together with any ULID Assessment collections)
shall be equal to the Coverage Requirement for each
year thereafter. The certificate, in estimating the
Net Revenue of the System available for debt service,
may adjust Net Revenue of the System to reflect:
Ordinance No. 4945
February 18, 1997
Page 39
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(1) Any changes in rates in effect and
being charged or expressly committed by
ordinance to be made in the future;
(2) Income derived from customers of
the System who have become customers during
the 12 consecutive month period or thereafter
adjusted to reflect one year's net revenue
from those customers;
(3) Income from any customers to be
connected to the System who have paid the
required connection charges;
(4) The Independent Utility
Consultant's estimate of the Net Revenue of
the System to be derived from customers
anticipated to connect for whom new building
permits have been issued;
(5) The Independent Utility
Consultant's estimate of the Net Revenue of
the System to be derived from customers with
existing homes or buildings which will be
required to connect to any additions to and
improvements and extensions of the System
constructed and to be paid for out of the
proceeds of the sale of the additional Future
Parity Bonds or other additions to and
improvements and extensions of the System
then under construction and not fully
connected to the facilities of the System
when such additions, improvements and
extensions are completed; and
(6) Income received or to be received
which is derived from any person, firm,
corporation or municipal corporation under
any executed contract for utility service,
which revenue was not included in the
historical Net Revenue of the System;
Ordinance No. 4945
February 18, 1997
Page 40
1 (7) Any increases or decreases in Net
2 Revenue as a result of any actual or
3 reasonably anticipated changes in Maintenance
4 and Operation Expense subsequent to the
5 12-month period.
6
7 In lieu of the certificate of an Independent
8 Utility Consultant as described in this paragraph (f),
9 there may be on file from the City Finance Director, a
10 certificate showing that in his or her professional
11 opinion, based on any 12 consecutive calendar months
12 out of the immediately preceding 24 calendar months,
13 and without the adjustments described in subparagraphs
14 (1) through (7), above, the Net Revenue of the System
15 shall be equal to the Coverage Requirement for each
16 year thereafter.
17
18 No certificate provided for in this paragraph (f)
19 shall be required in connection with the issuance of a
20 bond issue if the amount of bonds proposed to be issued
21 does not exceed the ULID Assessments levied in support
22 of such bond issue by more than $5,000 plus any amount
23 of the proceeds of such bonds deposited in the Reserve
24 Account as capitalized reserve.
25
26 Furthermore, if the Future Parity Bonds proposed
27 to be so issued are for the sole purpose of refunding
28 outstanding bonds payable from the Bond Fund, no such
29 certification of coverage shall be required if the
30 Annual Debt Service in each year for the refunding
31 bonds is not increased by $5,000 over the amount
32 required for the bonds to be refunded thereby and the
33 maturities of those refunding bonds are not extended
34 beyond the maturities of the bonds to be refunded
35 thereby.
36
37 Nothing contained herein shall prevent the City from issuing
38 Future Parity Bonds to refund maturing Parity Bonds then
Ordinance NO. 4945
February 18, 1997
Page 41
1 outstanding, money for the payment of which is not otherwise
2 available.
3 Nothing contained herein shall prevent the City from issuing
4 revenue bonds or other obligations that are a charge upon the
5 Gross Revenue of the System subordinate to the payments required
6 to be made therefrom into the Bond Fund for the payment of any
Parity Bonds or from pledging the payment of utility local
improvement district assessments into a bond redemption fund
created for the payment of the principal of and interest on those
subordinate
improvement
bonds or obligations as long as such utility local
district assessments are levied for improvements
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12 constructed from the proceeds of those junior lien bonds.
13 Section 18. Separate Utility System-. The City may create,
14 acquire, construct, finance, own and operate one or more
15 additional systems for water supply, sewer service, water, sewage
16 or stormwater transmission, treatment or other commodity or
17 service. The revenue of that separate utility system shall not
18 be included in the Gross Revenue of the System and may be pledged
19 to the payment of revenue obligations issued to purchase,
20 construct, condemn or otherwise acquire or expand the separate
21 utility system. Neither the Gross Revenue nor the Net Revenue of
22 the System shall be pledged by the City to the payment of any
Ordinance NO. 4945
February 19, 1997
Page 42
1 obligations of a separate utility system except (1) as a Contract
2 Resource Obligation upon compliance with Section 19 hereof and/or
3 (2), with respect to the Net Revenue, on a basis subordinate to
4 the lien of the Parity Bonds on that Net Revenue.
5 Section 19. Contract Resource Obliaatio~-. The City may at
any time enter into one or more contracts or other obligations
7 for the acquisition (from facilities yet to be constructed) of
8 water supply, sewer service, water sewer or stormwater
9 transmission, treatment or other commodity or service relating to
10 the System. The City may determine that such contract or other
11 obligation is a Contract Resource Obligation, and may provide
12 that all payments under that Contract Resource Obligation
13 (including payments prior to the time that water supply,
14 transmission, treatment or other commodity or service is being
15 provided, or during a suspension or after termination of supply
16 or service) shall be Maintenance and Operation Expense if the
17 following requirements are met at the time such Contract Resource
18 Obligation is entered into:
19 (a) No Event of Default as defined in
20 Section 31 of this ordinance has occurred and is
21 continuing.
22
23 (b) There shall be on file a certificate of
24 an Independent Utility Consultant stating that (i) the
25 payments to be made by the City in connection with the
Ordinance No. 4945
Februa~ 18, 1997
Page 43
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Contract Resource Obligation are reasonable for the
supply, transmission, treatment or other service
rendered; (ii) the source of any new supply, and any
facilities to be constructed to provide the supply,
transmission, treatment or other service, are sound
from a water, sewerage, or other commodity supply or
transmission planning standpoint, are technically and
economically feasible in accordance with prudent
utility practice, and are likely to provide supply or
transmission or other service no later than a date set
forth in the Independent Utility Consultant's
certification; and (iii) the Net Revenue (further
adjusted by the Independent Utility Consultant's
estimate of the payments to be made in accordance with
the Contract Resource Obligation) for the five fiscal
years following the year in which the Contract Resource
Obligation is incurred, as such Net Revenue is
estimated by the Independent Utility Consultant (with
such estimate based on such factors as he or she
considers reasonable), will be at least equal to the
Coverage Requirement.
Payments required to be made under Contract Resource
24 Obligations shall not be subject to acceleration.
25
Nothing in this Section 19 shall be deemed to prevent the
26 City from entering into other agreements for the acquisition of
27 water supply, sewer service, water, sewage or stormwater
28 transmission, treatment or other commodity or service from
29 existing facilities and from treating those payments as
30 Maintenance and Operation Expense. Nothing in this Section 19
31 shall be deemed to prevent the City from entering into other
32 agreements for the acquisition of water supply, transmission,
Ordinance No. 4945
February 18, 1997
Page 44
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1 treatment
2 constructed
3 thereto,
4 Revenue
5 Bonds.
Section 20.
or other commodity or service from facilities to be
and from agreeing to make payments with respect
such payments constituting a lien and charge on Net
subordinate to that of the Bonds and any Future Parity
Form and Execution of Bon8-. The Bonds shall be
printed, typed, lithographed or photocopied on good bond paper in
a form consistent with the provisions of this ordinance and state
law and shall be signed by the Mayor and City Clerk, either or
both of whose signatures may be manual or in facsimile, and the
seal of the City or a facsimile reproduction thereof shall be
impressed or printed thereon.
Only Bonds bearing a Certificate of Authentication in the
following form, manually signed by the Bond Registrar, shall be
valid or obligatory for any purpose or entitled to the benefits of
this ordinance:
Ordinance NO. 4945
February 18, 1997
Page 45
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CERTIFICATE OF AUTHENTICATION
This Bond is one of the fully registered City of
Auburn, Washington, Utility System Revenue Bonds, 1997,
described in the Bond Ordinance.
WASHINGTON STATE FISCAL AGENCY
Bond Registrar
By
Authorized Signer
The authorized signing of a Certificate of Authentication shall be
conclusive evidence that the Bonds so authenticated have been duly
executed, authenticated and delivered and are entitled to the
benefits of this ordinance.
If any officer whose facsimile signature appears on the Bonds
ceases to be an officer of the City authorized to sign bonds
before the Bonds bearing his or her facsimile signature are
authenticated or delivered by the Bond Registrar or issued by the
City, those Bonds nevertheless may be authenticated, issued and
delivered and, when authenticated, issued and delivered, shall be
as binding on the City as though that person had continued to be
an officer of the City authorized to sign bonds. Any Bond also
may be signed on behalf of the City by any person who, on the
actual date of signing of the Bond, is an officer of the City
Ordinance NO. 4949
February 18, 1997
Page 46
1 authorized to sign bonds, although he or she did not hold the
2 required office on the date of issuance of the Bonds.
3 Section 21. ~. The Bond Registrar shall keep,
4 or cause to be kept, at its principal corporate trust office,
5 sufficient books for the registration and transfer of the Bonds,
6 which shall be open to inspection by the City at all times. The
7 Bond Registrar is authorized, on behalf of the City, to
8 authenticate and deliver Bonds transferred or exchanged in
9 accordance with the provisions of the Bonds and this ordinance,
10 to serve as the City's paying agent for the Bonds and to carry
11 out all of the Bond Registrar's powers and duties under this
12 ordinance and City Ordinance No. 3905 establishing a system of
13 registration for the City's bonds and obligations.
14 The Bond Registrar shall be responsible for its
15 representations contained in the Bond Registrar's Certificate of
16 Authentication on the Bonds. The Bond Registrar may become the
17 owner of Bonds with the same rights it would have if it were not
18 the Bond Registrar and, to the extent permitted by law, may act as
19
20
21
depository for and permit any of its officers or directors to act
as members of, or in any other capacity with respect to, any
committee formed to protect the rights of Bond owners.
Ordinance No. 4945
February 18, 1997
Page 47
1 Section 22. Preservation of Tax Exemption for Interest on
2 ]~_~. The City covenants that it will take all actions
3 necessary to prevent interest on the Bonds from being included in
4 gross income for federal income tax purposes, and it will neither
5 take any action nor make or permit any use of proceeds of the
6 Bonds or other funds of the City treated as proceeds of the Bonds
7 at any time during the term of the Bonds which will cause
8 interest on the Bonds to be included in gross income for federal
9 income tax purposes. The City also covenants that it will, to
10 the extent the arbitrage rebate requirement of Section 148 of the
11 Internal Revenue Code of 1986, as amended (the "Code"), is
12 applicable to the Bonds, take all actions necessary to comply (or
13 to be treated as having complied) with that requirement in
14 connection with the Bonds, including the calculation and payment
15 of any penalties that the City has elected to pay as an
16 alternative to calculating rebatable arbitrage, and the payment
17 of any other penalties if required under Section 148 of the Code
18 to prevent interest on the Bonds from being included in gross
19 income for federal income tax purposes. The City certifies that
20 it has not been notified of any listing or proposed listing by
21 the Internal Revenue Service to the effect that it is a bond
22 issuer whose arbitrage certifications may not be relied upon.
Ordinance No. 4945
February 19, 1997
Page 48
1 Section 23. Desiqnation of Bonds as "Oualified Tax-E~-m~t
2 ~h~.~." The City has determined and certifies that (a) the
3 Bonds are not "private activity bonds" within the meaning of
4 Section 141 of the Code; (b) the reasonably anticipated amount of
5 tax-exempt obligations (other than private activity bonds) which
6 the City and any entity subordinate to the City (including any
7 entity which the City controls, which derives its authority to
8 issue tax-exempt obligations from the City or which issues tax-
9 exempt obligations on behalf of the City) will issue during the
10 calendar year in which the Bonds are issued will not exceed
11 $10,000,000; and (c) the amount of tax-exempt obligations,
12 including the Bonds, designated by the City as "qualified tax-
13 exempt obligations" for the purposes of Section 265(b) (3) of the
14 Code during the calendar year in which the Bonds are issued does
15 not exceed'S10,000,000. The City designates the Bonds as
16 "qualified tax-exempt obligations', for the purposes of
17 Section 265(b) (3) of the Code.
18 Section 24. ~. The Bonds shall be negotiable
19 instruments to the extent provided by RCW 62A.8-102 and
20 62A.8-105.
21 Section 25. Refunding or Defeasance of the Bon~-. The City
22 may issue refunding bonds pursuant to the laws of the State of
Ordinance No. 4945
Feb~a~ 18, 1997
Page 49
1 Washington or use money available from any other lawful source to
2 pay when due the principal of and interest on the Bonds, or any
3 portion thereof included in a refunding or defeasance plan, and
4 to redeem and retire, refund or defease all such then-outstanding
5 Bonds (hereinafter collectively called the "defeased Bonds") and
6 to pay the costs of the refunding or defeasance. If money
7 and/or direct obligations of the United States of maturing at a
8 time or times and bearing interest in amounts (together with
9 money, if necessary) sufficient to redeem and retire, refund or
10 defease the defeased Bonds in accordance with their terms are set
11 aside in a special trust fund or escrow account irrevocably
12 pledged to that redemption, retirement or defeasance of defeased
13 Bonds (hereinafter called the "trust account"), then all right
14 and interest of the owners of the defeased Bonds in the covenants
15 of this ordinance and in the funds and accounts obligated to the
16 payment of the defeased Bonds shall cease and become void. The
17 owners of defeased Bonds shall have the right to receive payment
18 of the principal of and interest on the defeased Bonds from the
19 trust account. The City shall include in the refunding or
20 defeasance plan such provisions as the City deems necessary for
21 the random selection of any defeased Bonds that constitute less
Ordinance No. 4945
February 18, 1997
Page 50
1 than all of a particular maturity of the Bonds, for notice of the
2 defeasance to be given to the owners of the defeased Bonds and to
3 such other persons as the City shall determine, and for any
4 required replacement of Bond certificates for defeased Bonds.
5 The defeased Bonds shall be deemed no longer outstanding, and the
6 City may apply any money in any other fund or account established
7 for the payment or redemption of the defeased Bonds to any lawful
8 purposes as it shall determine.
9 Notwithstanding anything in this section to the contrary, if
10 the principal of and/or interest due on the Bonds is paid by the
11 Bond Insurer pursuant to the Municipal Bond Insurance Policy, the
12 Bonds shall be treated as remaining outstanding for all purposes
13 and shall not be considered paid by the City, and the covenants,
14 agreements and other obligations of the City to the registered
15 owners of the Bonds shall continue to exist, and the Bond Insurer
16 shall be surbrogated to the rights of the registered owners.
17 Section 26. Approval of Bond Purchase Contract. Seattle-
18 Northwest Securities Corporation of Seattle, Washington, has
19 presented a purchase contract {the "Bond Purchase Contract") to
20 the City offering to purchase the Bonds under the terms and
21 conditions provided in the Bond Purchase Contract, which written
22 Bond Purchase Contract is on file with the City Clerk and is
Ordinance No. 4945
Feb~a~ 18, 1997
Page 51
1 incorporated herein by this reference. The City Council finds
2 that entering into the Bond Purchase Contract is in the City's
3 best interest and therefore accepts the offer contained therein
4 and authorizes its execution by City officials.
5 _ The Bonds will be printed at City expense
delivered to the purchaser in accordance with the
Contract, with the approving legal
Shefelman, municipal bond counsel of
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and will be
Bond Purchase
opinion of Foster Pepper &
Seattle, Washington,
Bond counsel shall not
with the Bonds, and bond counsel's opinion shall so state.
_ The proper City officials are authorized and directed to do
everything necessary for the prompt delivery of the Bonds to the
purchaser and for the proper application and use of the proceeds
of the sale thereof.
Section 27.
The City Council
official
Official
Bonds. For the sole purpose of the Bond purchaser's compliance
Ordinance NO. 4945
February 18, 1997
Page 52
Preliminary_ Official Statement Deemed Fins].
has been provided with copies of a preliminary
statement dated February 5, 1997 (the "Preliminary
Statement"), prepared in connection with the sale of the
regarding the Bonds printed on each Bond.
be required to
completeness or accuracy of any
circular or other sales material
review and shall express no opinion concerning the
official statement, offering
issued or used in connection
prices,
amount,
redemption, delivery dates,
dependent on such matters.
1 with Securities and Exchange Commission Rule 15c2-12(b) (1), the
2 City "deems final" that Preliminary Official Statement as of its
3 date, except for the omission of information as to offering
4 interest rates, selling compensation, aggregate principal
5 principal amount per maturityl maturity dates, options of
6 ratings and other terms of the Bonds
Section 28. ~. Pending the printing,
7
8 execution
9 and delivery to the purchaser of definitive Bonds, the City may
10 cause to be executed and delivered to the purchaser a single
11 temporary Bond in the total principal amount of the Bonds. The
12 temporary Bond shall bear the same date of issuance, interest
13 rates, principal payment dates and terms and covenants as the
14 definitive Bonds, shall be issued as a fully registered Bond in
15 the name of the purchaser, and otherwise shall be in a form
16 acceptable to the purchaser. The temporary Bond shall be
17 exchanged for definitive Bonds as soon as they are printed,
18 executed and available for delivery.
19 Section 29. Undertakina to Prov~d~ Cont~nu~n? Disclosure.
20 To meet the requirements of United States Securities and Exchange
21 Commission ("SEC") Rule 15c2-12 (b) (5) (the "Rule") , as applicable
22 to a participating underwriter for the Bonds, the City makes the
Ordinance No. 4945
February 18, 1997
Page 53
1 following written undertaking (the "Undertaking") for the benefit
2 of holders of the Bonds.
3 (a) Undertakin~ to Provide Annual Financial
4 Information and Notice of Material Events. The City
5 undertakes to provide or cause to be provided, either
6 directly or through a designated agent:
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(i) To each nationally recognized
municipal securities information repository
designated by the SEC in accordance with the Rule
("NRMSIR") and to a state information depository,
if any, established in the state of Washington
(the "SID") annual financial information and
operating data of the type included in the final
official statement for the Bonds and described in
Section 29(b) ("annual financial information");
(ii) To each NRMSIR or the Municipal
Securities Rulemaking Board ("MSRB"), and to the
SID, timely notice of the occurrence of any of the
following events with respect to the Bonds, if
material: (1) principal and interest payment
delinquencies; (2) non-payment related defaults;
(3) unscheduled draws on debt service reserves
reflecting financial difficulties; (4) unscheduled
draws on credit enhancements reflecting financial
difficulties; (5) substitution of credit or
liquidity providers, or their failure to perform;
(6) adverse tax opinions or events affecting the
tax-exempt status of the Bonds; (7) modifications
to rights of holders of the Bonds; (8) Bond calls
(other than scheduled mandatory redemptions of
Term Bonds); (9) defeasances; (10) release,
substitution, or sale of property securing
repayment of the Bonds; and (11) rating changes;
and
(iii) To each NRMSIR or to the MSRB, and to
the SID, timely notice of a failure by the City to
provide required annual financial information on
or before the date specified in Section 29(b).
Ordinance NO. 4949
February 18, 1997
Page 54
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(b) Type of Annual Financial Information
Undertaken to be Provided. The annual financial
information that the City undertakes to provide in
Section 29(a):
(i) Shall consist of (1) a statement of
authorized, issued and outstanding bonded debt
secured by Gross Revenue of the System; (2) debt
service coverage ratios; and (3) general customer
statistics for the System;
(ii) Shall be prepared (except as noted in
the financial statements) in accordance with
accounting procedures prescribed by the State
Auditor and any other applicable rules and
regulations prescribed by the State of Washington;
(iii) Shall not be audited, except, however,
that if and when audited financial statements are
otherwise prepared and available to the City they
will be provided;
(iv) Shall be provided to each NRMSIR and
the SID, not later than the last day of the ninth
month after the end of each fiscal year of the
City (currently, a fiscal year ending December
31), as such fiscal year may be changed as
required or permitted by State law, commencing
with the City's fiscal year ending December 31,
1996; and
(v) May be provided in a single or multiple
documents, and may be incorporated by reference to
other documents that have been filed with each
NRMSIR and the SID, or, if the document
incorporated by reference is a "final official
statement" with respect to other obligations of
the City, that has been filed with the MSRB.
Ordinance No. 4945
February 18, 1997
Page 55
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(c) Amendment of UndertakiNg. The Undertaking is
subject to amendment after the primary offering of the
Bonds without the consent of any holder of any Bond, or
of any broker, dealer, municipal securities dealer,
participating underwriter, rating agency, NRMSIR, the
SID or the MSRB, under the circumstances and in the
manner permitted by the Rule.
The City will give notice to each NRMSIR or the
MSRB, and the SID, of the substance (or provide a copy)
of any amendment to the Undertaking and a brief
statement of the reasons for the amendment. If the
amendment changes the type of annual financial
information to be provided, the annual financial
information containing the amended financial
information will include a narrative explanation of the
effect of that change on the type of information to be
provided.
(d) ~[~L~. The Undertaking evidenced by
this Section 29 shall inure to the benefit of the City
and any holder of Bonds, and shall not inure to the
benefit of or create any rights in any other person.
(e) Termination of Undertakinq. The City's
obligations under this Undertaking shall terminate upon
the legal defeasance of all of the Bonds. In addition,
the City's obligations under this Undertaking shall
terminate if those provisions of the Rule which require
the City to comply with this Undertaking become legally
inapplicable in respect of the Bonds for any reason, as
confirmed by an opinion of nationally recognized bond
counsel or other counsel familiar with federal
securities laws delivered to the City, and the City
provides timely notice of such termination to each
NRMSIR or the MSRB and the SID.
Ordinance NO. 4945
February 18, 1997
Page 56
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(f) Remedy for Failure to Comply with
~. As soon as practicable after the City
learns of any failure to comply with the Undertaking,
the City will proceed with due diligence to cause such
noncompliance to be corrected. No failure by the City
or other obligated person to comply with the
Undertaking shall constitute a default in respect of
the Bonds. The sole remedy of any holder of a Bond
shall be to take such actions as that holder deems
necessary, including seeking an order of specific
performance from an appropriate court, to compel the
City or other obligated person to comply with the
Undertaking.
(g) Designation of Official Responsible ~o
Administer Undertaking. The Finance Director of the
City (or such other officer of the City who may in the
future perform the duties of the Finance Director) or
his or her designee is authorized and directed in his
or her discretion to take such further actions as may
be necessary, appropriate or convenient to carry out
the Undertaking of the City in respect of the Bonds set
forth in this Section 29 and in accordance with the
Rule, including, without limitation, the following
actions:
(i) Preparing and filing the annual
financial information undertaken to be provided;
(ii) Determining whether any event
specified in Section 29(a) has occurred, assessing
its materiality with respect to the Bonds, and, if
material, preparing and disseminating notice of
its occurrence;
(iii) Determining whether any person other
than the City is an "obligated person" within the
meaning of the Rule with respect to the Bonds, and
obtaining from such person an undertaking to
provide any annual financial information and
notice of material events for that person in
accordance with the Rule;
Ordinance No. 4945
February 18, 1997
Page 57
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(iv) Selecting, engaging and compensating
designated agents and consultants, including but
not limited to financial advisors and legal
counsel, to assist and advise the City in carrying
out the Undertaking; and
(v) Effecting any necessary amendment of
the Undertaking.
Section 30. Amendatorv and Supplemental Oral-b-Ce.
(a) This ordinance shall not be modified or amended in
any respect subsequent to the initial issuance of the Bonds,
except as provided in and in accordance with and subject to the
provisions of this section.
(b) The City, from time to time, and at any time,
without the consent of or notice to the registered owners of the
Bonds, may pass supplemental or amendatory ordinances as follows:
(1) To cure any formal defect, omission,
inconsistency or ambiguity in this ordinance in a manner not
adverse to the owner of any Parity Bond;
(2) To impose upon the Bond Registrar (with its
consent)
additional rights, remedies, powers,
liabilities or duties which may lawfully be
for the benefit of the registered owners of the Bonds any
authority, security,
granted, conferred or
Ordinance No. 4945
February 18, 1997
Page 58
1 imposed and which are not contrary to or inconsistent with this
2 ordinance as theretofore in effect;
3 (3) To add to the covenants and agreements of,
4 and limitations and restrictions upon, the City in this ordinance,
5 other covenants, agreements, limitations and restrictions to be
6 observed by the City which are not contrary or inconsistent with
7 this ordinance as theretofore in effect;
8 (4) To confirm, as further assurance, any pledge
9 under, and the subjection to any claim, lien or pledge created or
10 to be created by this ordinance of any other money, securities or
11 funds;
12 (5) To authorize different denominations of the
13 Bonds and to make correlative amendments and modifications to this
14 ordinance regarding exchangeability of Bonds of different
15 authorized denominations, redemptions of portions of Bonds of
16 particular authorized denominations and similar amendments and
17 modifications of a technical nature;
18 (6) To modify, alter, amend or supplement this
19 ordinance in any other respect which is not materially adverse to
20 the registered owners of Parity Bonds and which does not involve a
21 change described in paragraph (c) of this Section 30;
Ordinance No. 4945
February 18, 1997
Page 59
1 (7) Because of change in federal law or rulings,
2 to maintain the exclusion from gross income of the interest on the
3 Bonds from federal income taxation; and
4 (8) To add to the covenants and agreements of,
5 and limitations and restrictions upon, the City in this ordinance,
6 other covenants, agreements, limitations and restrictions to be
7 observed by the City which are requested by a bond insurer or
8 provider of Reserve Insurance and which are not materially adverse
9 to the registered owners of Parity Bonds.
10 Before the City shall adopt any such supplemental ordinance
11 pursuant to this subsection, there shall have been delivered to
12 the City and the Bond Registrar an opinion of Bond Counsel,
13 stating that such supplemental ordinance is authorized or
14 permitted by this ordinance and, upon the execution and delivery
15 thereof, will be valid and binding upon the City in accordance
16 with its terms and will not adversely affect the exclusion from
17 gross income for federal income tax purposes of interest on the
18 Bonds.
19 (c) (1) Except for any supplemental ordinance entered
20 into pursuant to paragraph (b) of this Section 28, subject to the
21 terms and provisions contained in this paragraph (c) and not
Ordinance NO. 4945
February 18, 1997
Page 60
otherwise, registered owners of not less than 60% in aggregate
principal amount of the Parity Bonds shall have the right from
time to time to consent to and approve the adoption by the City of
any supplemental ordinance deemed necessary or desirable by the
City for the purpose of modifying, altering, amending,
6 supplementing or rescinding, in any particular, any of the terms
7 or provisions contained in this ordinance; except that, unless
8 approved in writing by the registered owners of all Parity Bonds,
9 nothing contained in this section shall permit, or be construed as
10 permitting:
11 (i) A change in the times, amounts or
12 currency of payment of the principal of or
13 interest on any outstanding Parity Bond or a
14 reduction in the principal amount or redemption
15 price of any outstanding Parity Bond or a change
16 in the redemption price of any outstanding Parity
17 Bond or a change in the method of determining the
18 rate of interest thereon, or
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20 (ii) A preference of priority of any Parity
21 Bonds or any other bond or bonds, or
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23 (iii) A reduction in the aggregate principal
24 amount of any Parity Bond.
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26 (2) If at any time the City shall pass any
27 supplemental ordinance for any of the purposes of this subsection
28 (c), the Bond Registrar shall cause notice of the proposed
29 supplemental ordinance to be given by first-class United States
Ordinance No. 4945
February 18, 1997
Page 61
1 mail to all registered owners of the Bonds and Parity Bonds, to
2 any bond insurer, and to the Rating Agencies if the Parity Bonds
3 are rated by those agencies. Such notice shall briefly set forth
4 the nature of the proposed supplemental ordinance and shall state
5 that a copy thereof is on file at the office of the Bond Registrar
for inspection by all registered owners of the
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Parity Bonds.
(3) Within two years after the date of the
mailing of such notice, the City may adopt such supplemental
ordinance in substantially the form described in such notice, but
only if there shall have first been delivered to the Bond
Registrar (i) the required consents, in writing, of the registered
owners of the Parity Bonds, and (ii) an opinion of Bond Counsel
stating that such supplemental ordinance is authorized or
permitted by this ordinance and, upon the execution and delivery
thereof, will be valid and binding upon the City in accordance
with its terms and will not adversely affect the exclusion from
gross income for federal income tax purposes of interest on the
Parity Bonds.
(4) If registered owners of not less than the
percentage of Parity Bonds required by this paragraph (c) shall
have consented to and approved the execution and delivery thereof
Ordinance NO. 4945
February 18, 1997
Page 62
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as herein provided, no owner of the Parity Bonds shall have any
right to object to the adoption of such supplemental ordinance, or
to object to any of the terms and provisions contained therein or
the operation thereof, or in any manner to question the propriety
of the passage thereof, or to enjoin or restrain the City or the
Bond Registrar from passing the same or from taking any action
pursuant to the provisions thereof.
(d) Upon the execution and delivery of any
supplemental ordinance pursuant to the provisions of this Section
28, this ordinance shall be, and be deemed to be, modified and
amended in accordance therewith, and the respective rights, duties
and obligations under this ordinance of the City, the Bond
Registrar and all registered owners of Parity Bonds, shall
thereafter be determined, exercised and enforced under this
ordinance subject in all respects to such modifications and
amendments.
Section 31. Defaults and
(a) Events of Default. The
following shall constitute
"Events of Default" with respect to the Bonds:
Ordinance NO. 4945
February 18, 1997
Page 63
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1 (1) If a default is made in the payment of the
2 principal of or interest on any of the Bonds when the same shall
3 become due and payable; or
4 (2) If the City defaults in the observance and
5 performance of any other of the covenants, conditions and
agreements on the part of the City set forth in this ordinance or
any covenants, conditions or agreements on the part of the City
contained in any Future Parity Bond authorizing ordinance and such
default or defaults have continued for a period of six months
after they have received from the Bondowners, Trustee (as defined
below) or from the registered owners of not less than 25% in
principal amount of the Parity Bonds, a written notice specifying
and demanding the cure of such default. However, if the default
in the observance and performance of any other of the covenants,
conditions and agreements is one which cannot be completely
remedied within the six months after written notice has been
given, it shall
not be
Bonds as long as the
after written notice
an Event of Default with respect to the
City has taken active steps within 90 days
has been given to remedy the default and is
diligently pursuing such remedy.
Ordinance NO. 4945
February 18, 1997
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(3) If the City files a petition in bankruptcy or
is placed in receivership under any state or federal bankruptcy or
insolvency law.
(b) Bondowners' Trustem. So long as such Event of
Default has not been remedied, a bondowners, trustee (the
"Bondowners' Trustee") may be appointed by the registered owners
of 25% in principal amount of the Parity Bonds or by the Bond
Insurer, by an instrument or concurrent instruments in writing
signed and acknowledged by such registered owners of the Parity
Bonds or Bond Insurer or by their attorneys-in-fact duly
authorized and delivered to such Bondowners' Trustee, notification
thereof being given to the City. That appointment shall become
effective immediately upon acceptance thereof by the Bondowners'
Trustee. Any Bondowners' Trustee appointed under the provisions
of this Subsection 29(b) shall be a bank or trust company
organized under the laws of the State of Washington or the State
and a successor
registered owners
Bonds or by the
of New York or a national banking association. The bank or trust
company acting as Bondowners' Trustee may be removed at any time,
Bondowners' Trustee may be appointed, by the
of a majority in principal amount of the Parity
Bond Insurer, by an instrument or concurrent
Ordinance NO. 4945
February 18, 1997
Page 65
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1 instruments in writing signed and acknowledged by such registered
2 owners of the Bonds or by their attorneys-in-fact duly authorized.
3 The Bondowners' Trustee may require such security and indemnity as
4 may be reasonable against the costs, expenses and liabilities that
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may be incurred in the performance of its duties.
In the event that any Event of Default in the sole judgment
of the Bondowners' Trustee is cured and the Bondowners' Trustee
furnishes to the City a certificate so stating, that Event of
the
Default shall be conclusively deemed to be cured and the City,
Bondowners' Trustee and the registered owners of the Parity Bonds
shall be restored to the same rights and position which they would
have held if no Event of Default had occurred.
The Bondowners' Trustee appointed in the manner herein
provided, and each successor thereto, is declared to be a trustee
for the registered owners of all the Parity Bonds and is empowered
to exercise all the rights and powers herein conferred on the
Bondowners' Trustee.
(c) Suits at Law or in Equity. Upon
the happening of
an Event of Default and during the continuance thereof, the
Bondowners' Trustee may, and upon the written request of the
registered owners of not less then 25% in principal amount of the
Ordinance No. 4945
February 18, 1997
Page 66
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Parity Bonds
steps
as it
outstanding or by the Bond Insurer shall, take such
and institute such suits, actions or other proceedings, all
may deem appropriate for the protection and enforcement of
the rights of the registered owners of the Parity Bonds, to
collect any amounts due and owing to or from the City, or to
obtain other appropriate relief, and may enforce the specific
performance of any covenant, agreement or condition contained in
this ordinance or in any of the Parity Bonds.
Nothing contained in this Section 31 shall, in any event or
under any circumstance, be deemed to authorize the acceleration of
maturity of principal on the Parity Bonds, and the remedy of
acceleration is expressly denied to the registered owners of the
Parity Bonds or the Bond Insurer under any circumstances
including, without limitation, upon the occurrence and continuance
of an Event of Default.
Any action, suit or other proceedings instituted by the
Bondowners' Trustee hereunder shall be brought in its name as
trustee for the Bondowners and all such rights of action upon or
under any of the Parity Bonds or the provisions of this ordinance
may be enforced by the Bondowners' Trustee without the possession
of any of those Parity Bonds and without the production of the
Ordinance No. 4945
February 18, 1997
Page 67
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1 same at any trial or proceedings relative thereto except where
2 otherwise required by law. Any such suit, action or proceeding
3 instituted by the Bondowners' Trustee shall be brought for the
4 ratable benefit of all of the registered owners of those Parity
5 Bonds and/or for the benefit of the Bond Insurer, subject to the
6 provisions of this ordinance. The respective registered owners of
the Parity Bonds and the Bond Insurer, by taking and holding the
be conclusively deemed irrevocably to appoint the
Trustee the true and lawful trustee of the respective
same, shall
Bondowners'
registered
institute
trustee
account
owners of those Parity Bonds, with authority to
any such action, suit or proceeding; to receive as
and deposit in trust any sums becoming distributable on
of those Parity Bonds; to execute any paper or documents
for the receipt of money; and to do all acts with respect thereto
that the registered owner himself or herself might have done in
person. Nothing herein shall be deemed to authorize or empower
the Bondowners, Trustee to consent to accept or adopt, on behalf
of any registered owner of the Parity Bonds, any plan of
reorganization or adjustment affecting the Parity Bonds or any
right of any registered owner thereof, or to authorize or empower
the Bondowners' Trustee to vote the claims of the registered
Ordinance NO. 4945
February 18, 1997
Page 68
1 owners thereof in any receivership, insolvency, liquidation,
2 bankruptcy, reorganization or other proceeding to which the City
3 is a party.
4 (d) Application of Money Collected by Bondowners'
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5 Trustee. Any money collected by the Bondowners' Trustee at any
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time pursuant to this Section 31 shall be applied in the following
7 order of priority:
(i) first, to the payment of the charges,
expenses, advances and compensat ion of the
Bondowners ' Trustee and the charges, expenses,
counsel fees, disbursements and compensation of
its agents and attorneys;
(ii) second, to the payment to the persons
entitled thereto of all installments of interest
then due on the Parity Bonds in the order of
maturity of such installments and, if the amount
available shall not be sufficient to pay in full
any installment or installments maturing on the
same date, then to the payment thereof ratably,
according to the amounts due thereon to the
persons entitled thereto, without any
discrimination or preference; and
(iii) third, to the payment to the persons
entitled thereto of the unpaid principal amounts
of any Parity Bonds which shall have become due
(other than Parity Bonds previously called for
redemption for the payment of which money is held
pursuant to the provisions hereto) , whether at
maturity or by proceedings for redemption or
otherwise, in the order of their due dates and, if
the amount available shall not be sufficient to
pay in full the principal amounts due on the same
date, then to the payment thereof ratably,
according to the principal amounts due thereon to
Ordinance NO. 4945
February 18, 1997
Page 69
the persons entitled thereto, without any
discrimination or preference.
For purposes of payments under this subsection 31(d) the Bond
Insurer shall be treated as a registered owner with respect to the
Bonds upon which it has paid interest and/or principal, and shall
7 receive payments ratably from the Trustee.
8 (e) Duties and Obliqations of Bondowners' Trusten. The
9 Bondowners' Trustee shall not be liable except for the performance
10 of such duties as are specifically set forth herein. During an
11 Event of Default, the Bondowners' Trustee shall exercise such of
12 the rights and powers vested in it hereby, and shall use the same
13 degree of care and skill in its exercise, as a prudent person
14 would exercise or use under the circumstances in the conduct of
15 his or her own affairs. The Bondowners' Trustee shall have no
16 liability for any act or omission to act hereunder except for the
17 Bondowners' Trustee's own negligent action, its own negligent
18 failure to act or its own willful misconduct. The duties and
19 obligations of the Bondowners' Trustee shall be determined solely
20 by the express provisions of this ordinance, and no implied
21 powers, duties or obligations of the Bondowners' Trustee shall be
22 read into this ordinance.
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Ordinance No. 4945
February 18, 1997
Page 70
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1 The Bondowners' Trustee shall not be required to expend or
2 risk its own funds or otherwise incur individual liability in the
3 performance of any of its duties or in the exercise of any of its
4 rights or powers as the Bondowners' Trustee, except as may result
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from its own negligent action,
its own willful misconduct.
The Bondowners' Trustee
person as a registered owner of
thereto, if disputed, has been
satisfaction.
its own negligent failure to act or
shall not be bound to recognize any
any Bond until his or her title
established to its reasonable
The Bondowners' Trustee may consult with counsel and the
opinion of such counsel shall be full and complete authorization
and protection in respect of any action taken or suffered by it
hereunder in good faith and in accordance with the opinion of
counsel. The Bondowners' Trustee
neglect or default of any person,
such
shall not be answerable for any
firm or corporation employed and
or more
selected-by it with reasonable care.
(f) Suits by Individual Bondowners Restricted.
Neither the registered owner nor the beneficial owner of any one
of Parity Bonds, nor the Bond Insurer, shall have any
Ordinance NO. 4945
February 18, 1997
Page 71
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right to institute any action, suit or proceeding at law or in
equity for the enforcement of same unless:
(i) an Event of Default has happened
and is continuing; and
(ii) a Bondowners' Trustee has been
appointed; and
(iii) such owner or Bond Insurer previously
shall have given to the Bondowners' Trustee
written notice of the Event of Default on account
of which such suit, action or proceeding is to be
instituted; and
(iv) the registered owners of 25% in
principal amount of the Bonds and Future Parity
Bonds, after the occurrence of such Event of
Default, or the Bond Insurer, has made written
request of the Bondowners' Trustee and have
afforded the Bondowners' Trustee a reasonable
opportunity to institute such suit, action or
proceeding; and
(v) there have been offered to the
Bondowners' Trustee security and indemnity
satisfactory to it against the costs, expenses and
liabilities to be incurred therein or thereby; and
(vi) the Bondowners' Trustee has refused or
neglected to comply with such request within a
reasonable time.
No registered owner or beneficial owner of ally Parity
34 Bond shall have any right in any manner whatever by his or her
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action to affect or impair the obligation of the City to pay from
Ordinance NO. 4945
February 18, 1997
Page 72
1 the Net Revenue the principal of and interest on such Parity Bonds
2 to the respective owners thereof when due.
3 Section 32. ~. The City Council finds that it
4 is in the City's best interest to purchase, and that a savings
5 will result from purchasing, the Municipal Bond Insurance Policy
6 for the Bonds. The City shall purchase from the Bond Insurer the
7 Municipal Bond Insurance Policy insuring the prompt pay~ent of
8 the principal of and interest on the Bonds and agrees to the
9 conditions for obtaining that policy, including the payment of
10 the premium therefor and the following provisions entitled
11 "Payments under the Policy" required by the Bond Insurer to be
12 included in this ordinance:
13 "A. In the event that, on the second Business Day, and
14 again on the Business Day, prior to the payment date on the
15 Obligations, the Bond Registrar has not received sufficient
16 moneys to pay all principal of and interest on the
17 Obligations due on the second following or following, as the
18 case may be, Business Day, the Paying Agent shall immediately
19 notify the Insurer or its designee on the same Business Day
20 by telephone or telegraph, confirmed in writing by registered
21 or certified mail, of the amount of the deficiency.
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23 "B. If the deficiency is made up in whole or in part
24 prior to or on the payment date, the Bond Registrar shall so
25 notify the Insurer or its designee.
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27 "C. In addition, if the Bond Registrar has notice that
28 any registered owner has been required to disgorge payments
29 of principal or interest on the Obligation to a trustee in
30 Bankruptcy or creditors or others pursuant to a final
31 j udgraent by a court of competent jurisdiction that such
Ordinance NO. 4945
Page 73
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payment constitutes a voidable preference to such registered
owner within the meaning of any applicable bankruptcy laws,
then the Bond Registrar shall notify the Bond Insurer or its
designee of such fact by telephone or telegraphic notice,
confirmed in writing by registered or certified mail.
"D. The Bond Registrar is hereby i:~revocably
designated, appointed, directed and authorized to act as
attorney-in-fact for registered owners of the Bonds as
follows:
"1. If and to the extent there is a
deficiency in amounts required to pay interest on
the Obligations, the Bond Registrar shall (a)
execute and deliver to State Street Bank and q?rust
Company, N.A., or its successors under the Policy
(the "Insurance Paying Agent"), in form
satisfactory to the Insurance Paying Agent~, an
instrument appointing the Insurer as agent for
such registered owners in any legal proceeding
related to the payment of such interest and an
assignment to the Insurer of the claims for
interest to which such deficiency relates and
which are paid by the Bonds Insurer, (b) receive
as designee of the respective registered o~ers
(and not as Bond Registrar) in accordance with the
tenor of the Policy payment from the Insurance
Paying Agent with respect to the claims for
interest so assigned, and (c) disburse the same to
such respective Holders; and
"2. If and to the extent of a deficiency in
amounts required to pay principal of the
Obligations, the Bond Registrar shall (a) execute
and deliver to the Insurance Paying Agent in form
satisfactory to the Insurance Paying Agent an
instrument appointing the Insurer as agent for
such Holder in any legal proceeding relating to
the payment of such principal and an assignment to
the Insurer of any of the Obligation surrendered
to the Insurance Paying Agent of so much of the
principal amount thereof as has not previously
been paid or for which moneys are not held by the
Ordinance NO. 4945
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Bond Registrar and available for such payment (but
such assignment shall be delivered only if pa[fment
from the Insurance Paying Agent is received), (b)
receive as designee of the respective regislzered
owners (and not as Paying Agent) in accordance
with the tenor of the Policy payment therefor from
the Insurance Paying Agent, and (c) disburse the
same to such registered owners.
"E. Payments with respect to claims for interest on
and principal of Obligations disbursed by the Bond Registrar
from proceeds of the Policy shall not be considered to
discharge the obligation of the Issuer with respect to such
Obligations, and the Bond Insurer shall become the owner of
such unpaid Obligations and claims for the interest in
accordance with the tenor of the assignment made to it under
the provisions of this subsection or otherwise.
"F. Irrespective of whether any such assignment is
executed and delivered, the City and the Paying Agent hereby
agree for the benefit of the Bond Insurer that:
"1. They recognize that to the extent the
Insurer makes payments, directly or indirectly. (as
by paying through the Bond Registrar), on account
of principal of or interest on the Obligations,
the Bond Insurer will be subrogated to the rights
of such registered owners to receive the amount of
such principal and interest from the Issuer, with
interest thereon as provided and solely from the
sources stated in this ordinance and the Bonds;
and
"2. They will accordingly pay to the Bond
Insurer the amount of such principal and interest
(including principal and interest recovered under
subparagraph (ii) of the first paragraph of the
Policy, which principal and interest shall be
deemed past due and not to have been paid), with
interest thereon as provided in this ordinance and
the Obligations, but only from the sources and in
the manner provided herein for the payment of
principal of and interest on the Obligations to
Ordinance NO. 4945
1 registered owners, and will otherwise treat the
2 Bond Insurer as the owner of such rights to the
3 amount of such principal and interest.
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5 "G. In connection with the issuance of additional
Obligations, the City shall deliver to the Insurer a copy of
the disclosure document, if any, circulated with respect to
such additional Bonds.
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10 "H. Copies of any amendments made to the documents
11 executed in connection with the issuance of the Obligations
12 which are consented to by the Bond Insurer shall be sent to
13 Standard & Poor's Corporation.
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15 "I. The Bond Insurer shall receive notice of the
16 resignation or removal of the Bond Registrar and the
17 appointment of a successor thereto.
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19 "J. The Bond Insurer shall receive copies of all
20 notices required to be delivered to registered owners and, on
21 an annual basis, copies of the City's audited financial
22 statements and Annual Budget.
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24 Section 33. Notices. Any notice that is required to be
25 given to a holder of a Bond or to the Bond Registrar pursuant to
26 this ordinance shall also be provided to the Bond Insurer. All
27 notices required to be given to the Bond Insurer under the
28 Indenture shall be in writing and shall be sent by registered or
29 certified mail addressed to MBIA Insurance Corporation, 113 King
30 Street, Armonk, New York 10504 Attention: Insured Portfolio
31 Management."
32 Section 34. Parties Interested ~ere~n. Nothing expressed or
33 implied in this ordinance is intended or shall be constr'~ed to
Ordinance NO. 4945
Page 76
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confer upon, or to give to, any person or entity, other than the
City, and the registered owners of the Bonds, any right,, remedy
or claim under or by reason of this ordinance or any covenant,
condition or stipulation hereof, and all covenants, stipulations,
promises and agreements in this ordinance contained by and on
behalf of the City shall be for the sole and exclusive benefit of
the City and the registered owners of the Bonds.
Section 35. ~. All actions previously taken
in accordance with this ordinance are hereby ratified and
confirmed.
Ordinance No. 4945
Page 77
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Section 36. Effective Date of Ordi~m.. This ordinance
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shall take effect and be in force from and after its passage and
five days following its publication as required by law.
ATTEST:
Robin Wohlhueter, City Clerk
23 APPROVED AS TO FORM:
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28 Michael J.
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31 PUBLISHED:
INTRODUCED 2/18/97
PASSED: 2/18/97
APPROVED: 2/18/97
Reynolds,
Charles A. Booth, Mayor
City Attorney
Ordinance NO. 4945
Page 78
EXHIBIT A
PLAN OF ADDITIONS
WATER PROJECTS FOR BOND SALE
Lea Hill Intertie Project:
This project is for the construction of water supply, pumping, and
transmission facilities to wholesale five million gallons per day (5 xngd) to
neighboring water purveyors, and provide 2 mgd for further City growth.
Elements of the Project: The facilities are composed of the following:
Green River Pump Station
lntertie Pump Station
Transmission Pipelines
Well 6 and Well 7
Water Resources Program
The water resources program is a characterization and study of the Auburn
aquifer and other water sources to determine the instantaneous and annual
capacities in order to support the City's application for additional water
rights. This study will also develop management strategies including long
term monitoring for hydraulic continuity between the deep aquifer and the
adjacent surface water bodies. The Water Resources Program will include
water quality protection as mandated by the Safe Drinking Water Act.
Elements of the Program: The program includes the following activities
and facilities:
Water Resources Protection Program
Coal Creek Spring Improvement
Aquifer Capacity Evaluation
Monitoring Wells
Well 5B, 5C, Test Wells
Green River and White River Gauging
STORM PROJECT FOR BOND SALE
Central Storm Improvement:
The project is intended to provide storm drainage relief for the Central
Drainage sub-basin. This sub-basin serves the developed downtown area of
Auburn and stretches generally northward between the BNRR and 'UPRR to
the receiving waters of Mill Creek. This comprises an area of
approximately 400 acres of developed and undeveloped land. Currently,
portions of this area experience surface flooding during periods of heavy
rainfall. This project will provide relief to these areas by increasing the size
of the storm facilities to accommodate greater intensity rains than tlhe
system can currently manage. Design alternatives are currently being
reviewed to determine the best route. This eftbrt will be followed by design
and preparation of specifications for phased construction beginning in 1997.
Improvements include improved conveyance and water quality facilities.
Elements of the Project: The facilities are composed of the following:
Increased pipelines capacity
Improved and increased ditchline capacity
Water quality facilities (created wetlands)
I, ROBIN WOHLHUETER, City Clerk of the City of Auburn,
Washington, certify that the attached copy of Ordinance No.
is a true and correct copy of the original ordinance passed on the
18th day of February, 1997, as that ordinance appears on the
Minute Book of the City.
DATED this
__ day of February, 1997.
ROBIN WOHLHUETER, City Clerk