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CITY OF AUBURN, WASHINGTON
ORDINANCE NO. 3 5 7 5
AN ORDINANCE of the City of Auburn, Washington,
specifying and adopting and ordering the carrying out
of a system or plan of additions to and betterments
and extensions of the waterworks utility of the City
including the sanitary sewage disposal system as a
part thereof; declaring the estimated cost thereof,
as nearly as may be; authorizing the issuance of
$2,000,000 par value of water and sewer revenue bonds
to obtain a part of the funds with which to pay the
cost of carrying out such system or plan; creating a
water and sewer revenue warrant fund; and authorizing
the issuance of revenue warrants pending the issuance
of such bonds.
WHEREAS, the City of Auburn, Washington (the "City"), now
owns, operates and maintains a water supply and distribution system
and a sanitary sewage disposal system, which systems were combined
pursuant to RCW 35.67.320 by ordinance No. 961, passed and approved
March 7, 1950, such combined systems, including all additions
thereto and betterments and extensions thereof at any time made, to
be hereinafter referred to as the "Waterworks Utility of the City";
and pursuant to RCW 35.67.340 such Waterworks Utility of the City is
being operated under and governed by the provisions of Chapter 35.92
RCW; and
WHEREAS, the City has a need to acquire and construct
certain water improvements; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, DO
ORDAIN as follows:
Section 1. The City Council finds and declares that the
public health and welfare require and that,it is in the best interests
of the inhabitants of the City that certain water improvements be
made. The following system or plan providing for additions to and
betterments and extensions of the Waterworks Utility of the City is
specified, adopted and ordered to be carried out:
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Ordinance No. 3575
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(1) Auburn Way South. There shall be con-
structed and installed approximately 11,000 L.F. of
14-inch transmission pipeline from the pump station
to the reservoirs. The existing pump station shall
be upgraded to 3.5 M.G. capacity. An additional 12-
inch pipeline shall be constructed in the Auburn
Academy area of approximately 2,600 L.F. in length.
A new 1.5 M.G. standpipe shall be constructed near
the Auburn Academy area.
(2) "A" Street S.E. Approximately one mile of
12-inch ductile iron pipe shall be installed in
conjunction with a major street improvement project.
(3) Water Well. A new well shall be developed
in the south part of the City with a capacity of
approximately 4 - 4.5 M.G.D.
There shall be included in the foregoing the acquisition
and installation of all necessary valves, fittings, couplings,
meters, fire hydrants, connections, wyes, manholes, equipment and
appurtenances, and the acquisition of any easements, rights-of-way
and land that may be necessary to the foregoing construction and
installation.
Section 2. The life of the foregoing additions to and
betterments and extensions of the Waterworks Utility of the City is
declared to be at least thirty years.
Section 3. The estimated cost, as near as may be, of the
acquisition, construction and installation of the above-described
additions to and betterments and extensions of the Waterworks
Utility of the City is declared to be $2,060,000, such estimated
cost to be paid from the proceeds received from the issuance and
sale of water and sewer revenue bonds of the City in the amount of
$2,000,000 herein authorized to be issued and the balance from other
funds of the City available therefor.
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Ordinance No. 3575
Section 4. The water and sewer revenue bonds referred to
in Section 3 are authorized to be issued at such time or times,
shall bear interest at a rate or rates not to exceed the maximum
rate permitted by law at the time of the issuance and sale of such
bonds, shall be numbered, shall bear such designation, shall be
payable at such place or places, shall mature serially in accordance
with such schedule, beginning not earlier than one year after date
of issuance and ending not later than 30 years thereafter, or shall
be term bonds, shall be payable out of such special water and sewer
revenue bond fund, shall have such options of payment prior to
maturity, shall guarantee such coverage and collection of rates,
shall provide for such additional funds and accounts, and shall
contain and be subject to such provisions or covenants, as shall be
hereafter fixed and established by ordinance of the City. The water
and sewer revenue bonds herein authorized to be issued shall be
payable from the gross revenues of the Waterworks Utility of the
City.
Section 5. There has heretofore been created and estab-
lished in the office of the City Finance Director a special fund of
the City known as the "Water/Sewer Construction Fund No. 440" which
shall be used for the purposes of paying for the costs and expenses
of carrying out the system or plan of additions to and betterments
and extensions of the Waterworks Utility of the City as specified,
adopted and ordered to be carried out in Section 1 hereof and of
paying the costs and expenses connected therewith, including the
financing thereof, and reimbursing advances made to that construction
fund from other City funds for those purposes, and into which fund
shall be deposited the proceeds from the sale of the water and sewer
revenue warrants and water and sewer revenue bonds (to the extent
they are not needed for deposit in the revenue warrant fund created
by Section 6) herein authorized to be issued and other money to be
used for such purposes.
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Ordinance No. 3575
Section 6. There is created and established in the office
of the City Finance Director a special fund of the City to be known
as the "Water and Sewer Revenue Warrant Fund, 1980." Pending the
issuance of the water and sewer revenue bonds authorized by Section
4 the City shall issue from time to time water and sewer revenue
warrants in a total amount not to exceed $2,000,000 which shall be
paid from the proceeds of such water and sewer revenue bonds and, if
necessary, from the gross revenue of the Waterworks Utility of the
City after the payment of the maintenance and operation expenses of
that utility and the payment of the principal of and interest on any
outstanding water and sewer revenue bonds of the City as that
principal and interest comes due. All such warrants shall be paid
solely from the Water and Sewer Revenue Warrant Fund, 1980, and
shall not constitute general obligations of the City.
Warrants issued from that fund shall be properly authorized
by vouchers for actual costs and reimbursements, shall be numbered
from No. 1 upward in order of their issuance, dated on their respec-
tive dates of issue after the effective date of this ordinance,
shall bear interest at the rate of 9.6858 per annum from their
respective dates of issuance to the date of their redemption, and
shall be redeemed on or before December 31, 1981.
The City covenants that it shall redeem all warrants
authorized by this section and issued pursuant to this and subsequent
ordinances on or before December 31, 1981, from the proceeds of the
water and sewer revenue bonds authorized by this ordinance, from
proceeds of additional warrants which the City Council may at a
later time authorize, and if necessary from the gross revenue of the
Waterworks Utility of the City after the payment of the maintenance
and operation expenses of that utility and the payment of the
principal of and interest on any outstanding water and sewer revenue
bonds of the City and bonds hereafter issued on a parity therewith
as that principal comes due. The warrants shall constitute a charge
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Ordinance No. 3575
or lien against such gross revenue subject only to those operation
and maintenance expenses and the payment of the principal and
interest on those outstanding water and sewer revenue bonds and
bonds hereafter issued on a parity therewith. The City covenants
that it shall maintain rates and charges for service to customers of
its Waterworks Utility sufficient to redeem such warrants when due
or thereafter if the proceeds of the water and sewer revenue bonds
authorized by this ordinance shall be insufficient for that purpose.
Seattle-First National Bank, by offer dated November 10,
1980, has offered to purchase all warrants authorized by this
section when issued. The City Council finds that such offer is the
best that the City could receive and that it is in the best interest
of the City to accept the same, and by this action does accept that
offer. The warrants when issued shall be delivered to the purchaser
upon payment therefor. If requested by the purchaser, the City at
its expense will furnish the purchaser with the opinion of Roberts,
Shefelman, Lawrence, Gay S Moch, bond counsel of Seattle, Washington,
approving the legality of such warrants and the exemption of the
interest thereof from federal income taxation. That opinion shall
state that bond counsel has not reviewed and thus expresses no
opinion concerning the completeness or accuracy of any official
statement, offering circular or other sales material relating to the
issuance of the warrants or otherwise used in connection with the
warrants.
A no-litigation opinion in the usual form shall also be
furnished to the purchaser.
Section 7. All actions taken by the City, the City Council
or any City official or employee relating to the carrying out of the
system or plan specified and adopted by this ordinance and the
payment of costs thereof consistent with the provisions of this
ordinance are ratified and confirmed.
PASSED by the City Council of the City of Auburn, Washington,
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Ordinance No. 3575
at a regular open public meeting, and APPROVED by the Mayor this 1st
day of December, 1980.
/4LL a ?1'4
ayor
ATTEST:
B& j A 4WA
City Clerk
PUBLISHED: DECEMBER 11, 1980
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Ordinance No. 3575 6
STATE OF WASHINGTON)
ss
COUNTY OF KING )
I, Coralee A. McConnehey, the duly appointed, qualified City Clerk
of the City of Auburn, a Municipal Corporation and Code City, situate in
the County of King, State of Washington, do hereby certify that the fore-
going is a full, true and correct copy of Ordinance No. 3575 of the
ordinances of the City of Auburn, entitled
"AN ORDINANCE OF THE CITY OF AUBURN, WASHINGTON, SPECIFYING AND ADOPTING AND
ORDERING THE CARRYING OUT OF A SYSTEM OR PLAN OF ADDITIONS TO AND BE'IfERN NTS
AND EXTENSIONS OF THE WATERWORKS UTILITY OF THE CITY INCLUDING THE SANITARY
SEWAGE DISPOSAL SYSTEM AS A PART THEREOF; DECLARING THE ESTIMATED COST THEREOF,
AS NEARLY AS MAY BE; AUTHORIZING THE ISSUANCE OF $2,000,000 PAR VALUE OF WATER
AND SEWER REVENUE BONDS TO OBTAIN A PART OF THE FUNDS WITH WHICH TO PAY THE OOST
OF CARRYING OUT SUCH SYSTEM OR PLAN; CREATING A WATER AND SEWER REVENUE
WARRANT FUND; AND AUTHORIZING THE ISSUANCE OF REVENUE 14ARRANTS PENDING THE
ISSUANCE OF SUCH.BONDS,
I certify that said Ordinance No. 3575 as duly passed by the
Council and approved by the Mayor of the said City of Auburn, on the 1st
day of T)prpmhpr , A.D., 19_BQ_.
I further certify that said Ordinance No.3575 was published as
provided by law in the Daily Globe News, a daily newspaper published in the
City of Auburn, and of general circulation therein, on the 11th day of
T)pnmh,. A. D. , 19_EQ_.
WITNESS my hand and the official seal of the City of Auburn, thisl2th
day of T)armb,.r , A.D., 19 80 .
i?. -X
CITY CLERK OF-THE-CITY OF-AUBURN