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HomeMy WebLinkAbout3575e?- Y 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: ------------------ Ordinance No. 3575 *. (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. 2 ------------------- 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. 3 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 ------------------ 4 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, 5 ------------------ 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 ------------------ 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