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Record No: CB 119923    Version: 1 Council Bill No: CB 119923
Type: Ordinance (Ord) Status: Passed
Current Controlling Legislative Body City Clerk
On agenda: 11/23/2020
Ordinance No: Ord 126223
Title: AN ORDINANCE relating to the drainage and wastewater system of The City of Seattle; providing for the defeasance of the claim or lien of certain of the City's outstanding drainage and wastewater system revenue bonds and payment of the administrative costs of such defeasance; providing for and authorizing the purchase of certain obligations and for the use and application of the money derived from those investments; authorizing the execution of a defeasance trust agreement to establish a defeasance escrow; authorizing the call for redemption prior to their maturity of those outstanding bonds that are to be defeased; and ratifying and confirming certain prior acts.
Sponsors: Teresa Mosqueda
Supporting documents: 1. Ex A – List of Outstanding Parity Bonds, 2. Summary and Fiscal Note, 3. Signed Ordinance 126223, 4. Affidavit of Publication
CITY OF SEATTLE
ORDINANCE __________________
COUNCIL BILL __________________
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AN ORDINANCE relating to the drainage and wastewater system of The City of Seattle; providing for the defeasance of the claim or lien of certain of the City's outstanding drainage and wastewater system revenue bonds and payment of the administrative costs of such defeasance; providing for and authorizing the purchase of certain obligations and for the use and application of the money derived from those investments; authorizing the execution of a defeasance trust agreement to establish a defeasance escrow; authorizing the call for redemption prior to their maturity of those outstanding bonds that are to be defeased; and ratifying and confirming certain prior acts.
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WHEREAS, The City of Seattle (the "City") owns, maintains, and operates a system of sanitary sewerage and storm and surface water drainage as part of Seattle Public Utilities (the "Drainage and Wastewater System"), which Drainage and Wastewater System has from time to time required various additions, improvements, betterments, and extensions; and
WHEREAS, the City has previously authorized and issued, and may from time to time in the future authorize and issue, drainage and wastewater system revenue bonds having a charge and lien on the Net Revenue of the Drainage and Wastewater System prior and superior to any other charges whatsoever ("Parity Bonds"), which are designated as defeasible under this ordinance (the "Defeasible Bonds"); and
WHEREAS, it is advantageous to the City and its ratepayers to provide for the application of available Net Revenue or other available funds (other than proceeds of Tax-Advantaged Bonds) to defease outstanding Defeasible Bonds whenever the Director of Finance determines that such defeasance will achieve a long-term cost savings or other benefit to the City or its ratepayers, all as permitted under chapter 39.53 RCW; and
WHEREAS, the City has determined that it is in the best interest ...

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