HomeMy WebLinkAbout4395 CITY OF BREMERTON, WASHINGTON
AN ORDINANCE of the City of Bremerton, Washington,
relating to the Waterworks Utility of the City; amending
Ordinance No. 4393 providing for the issuance of the
Water and Sewer Refunding Revenue Bonds, 1992, Series A,
and Water and Sewer Improvement Revenue Bonds 1992,
Series B, by adding a new section relating to the bond
insurance and reserve insurance; for purposes of amending
and declaring an emergency.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BREMERTON,
WASHINGTON, AS FOLLOWS:
Section 1. Amendment to Ordinance No. 4393. Ordinance No.
4393, passed October 28, 1992, is amended by adding a new section
to read as follows:
Section 30. Additional Provisions for Bond Insurer and
Reserve Insurer. To satisfy additional conditions required by the
Bond Insurer and Reserve Insurer, the City covenants and agrees as
follows:
As security for the City's repayment obligations with respect
to the Reserve Account Instrument, the Reserve Insurer shall be
granted a security interest (subordinate only to that of the
Bondowners) in all revenues and collateral pledged as security for
the Bonds.
The Bond Registrar shall ascertain the necessity for a claim
upon the Reserve Account Instrument and provide notice to the
Reserve Insurer in accordance with the terms of the Reserve Account
Instrument at least two business days prior to each interest
payment date.
The Reserve Insurer shall be provided with written notice at
the address in Section 26 of Ordinance No. 4393 of each of the
following:
(a) the resignation or removal of the Bond Registrar and the
appointment of a successor thereto;
(b) the issuance of additional indebtedness of the City,
whether or not it is on a parity with the Bonds, such notice,
together with a copy of the official statement or other disclosure
document prepared in connection therewith, to be given within 30
days after the sale of such bonds; and
(c) Any draw upon or deficiency due to market fluctuation in
the amount, if any, on deposit in the Reserve Account.
If an irrevocable letter of credit to the Bond Registrar is
obtained as a Reserve Account Instrument, the Bond Registrar shall
draw upon that letter of credit prior to its expiration or
termination unless an acceptable replacement is in place or the
Reserve Account is fully funded in its required amount.
The Net Revenue of the System available for debt service
shall be at least one times the City's obligations with respect to
repayment of Reserve Instrument and Bond Policy Costs then due and
owing before satisfying the Coverage Requirement of Sections 17 and
20.
No policy of municipal bond insurance other than a policy
issued by the Bond Insurer shall be provided as security for the
payment of principal of and interest on the Bonds.
The Reserve Account Instrument shall expire on the final
maturity date of the Bonds.
The following shall be delivered to the Bond Insurer
simultaneously with the delivery of the annual audited financial
statements:
(i) The number of System users as of the end of
the fiscal year;
(ii) Any significant plant retirements or
expansions planned or undertaken since the last
reporting date;
(iii) A statement of the amount on deposit in the
Reserve Account as of the last valuation, and, if not
presented in the audited financial statements, a
statement of the Net Revenue pledged to the payment of
the Bonds in that fiscal year; and
(iv) Such additional information as the Bond
Insurer may reasonably request from time to time.
Section 2. Declaration of Emergency. For the reason that it
is necessary that the City conform the provisions of Ordinance No.
0058630.01
4393 prior to the date of delivery of the Series A Bonds to the
purchaser thereof, an emergency is declared to exist, and it is
found necessary for the public health, welfare and safety that this
ordinance become effective immediately upon its passage, approval
and publication as required by law.
PASSED UNANIMOUSLY by the City Council of the City of
Bremerton, Washington, this 9th day of November, 1992.
HORTON, Council President
APPROVED this ~av of
KA~HLEEN McCLUS~Y, Clerk LOUIS MENTOR, Maydr~
APPROVED AS TO FORM:
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0058630.01