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File #: 2009-0635    Version:
Type: Ordinance Status: Passed
File created: 11/23/2009 In control: Budget and Fiscal Management Committee
On agenda: Final action: 12/14/2009
Enactment date: 12/21/2009 Enactment #: 16720
Title: AN ORDINANCE amending certain provisions of Ordinance 14172 of the county, passed on May 7, 2001, which authorized the issuance of $50,000,000 aggregate principal amount of junior lien variable rate demand sewer revenue bonds to finance capital improvements to the county's sewer system; and amending Ordinance 14172, Section 4.03, Ordinance 14172, Section 4.04, Ordinance 14172, Section 4.05 and Ordinance 14172, Section 5.02.
Sponsors: Larry Gossett, Larry Phillips
Indexes: Bonds
Attachments: 1. 16720.pdf, 2. 2009-0635 fiscal note.xls, 3. 2009-0635 Transmittal Letter.doc, 4. Staff Report 12-09-09, 5. 2009-0635 Am1 12-14-09.pdf
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AN ORDINANCE amending certain provisions of Ordinance 14172 of the county, passed on May 7, 2001, which authorized the issuance of $50,000,000 aggregate principal amount of junior lien variable rate demand sewer revenue bonds to finance capital improvements to the county's sewer system; and amending Ordinance 14172, Section 4.03, Ordinance 14172, Section 4.04, Ordinance 14172, Section 4.05 and Ordinance 14172, Section 5.02.
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PREAMBLE:
Pursuant to Ordinance 14172 of the county, passed by the county council on May 7, 2001, the county has issued and currently has outstanding its Junior Lien Variable Rate Demand Sewer Revenue Bonds, Series 2001B (the "Bonds") in the aggregate principal amount of $50,000,000. The Bonds provide low cost borrowing for the capital needs of the county's Sewer System.
To maintain the rating on the Bonds, Standard & Poor's Ratings Services has requested that the county amend Ordinance 14172 to permit the county to make certain payments of principal of and interest on the Bonds in accordance with the ordinance if the bank providing a letter of credit fails to honor a proper draw on the letter of credit for such payments. Sections 7.07(f) and 7.09 of Ordinance 14172 permit such an amendment without the consent of owners of the Bonds, with the consent of the bank that provides the letter of credit for the Bonds.
BE IT ORDAINED BY THE COUNCIL OF KING COUNTY:
SECTION 1. Definitions. Unless otherwise defined in this Article I, capitalized terms used in this ordinance have the meaning given such terms in Ordinance 14172. Ordinance 14172 is hereby amended by the addition of the following term with the following meaning to Section 1.01 of the ordinance:
County Purchase Subaccount means the subaccount by that name created within the Purchase Account in accordance with Section 4.04 hereof.
SECTION 2. Amending the Source of Payment Provisions. Ordinance 14172, Section 4.03, is hereby amended to read as follows (deletions are strick...

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