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HomeMy WebLinkAboutORD 3399 A M EN DF 0 fay i) 4tI/ CITY OF RENTON, WASHINGTON ORDINANCE NO. 3399 AN ORDINANCE of the City of Renton, Washington, relating to contracting indebtedness; providing for the issuance, specifying the maturities, maximum effective interest rate, terms and cove- nants of $6,000, 000 par value of "Unlimited Tax General Obligation Park Bonds, 1980, Series A" authorized by the qualified voters of the City at a special election held therein pursuant to Ordinance No. 3336, as amended by Ordinances Nos. 3343 and 3350; establishing a bond redemption fund and a construction fund; and providing for the sale of such bonds. I �I THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO ORDAIN, as follows : Section 1 . The City of Renton, Washington (hereinafter called the "City" ) , shall presently issue and sell $6, 000, 000 par value of negotiable general obligation bonds of the total $7, 825, 000 par value of negotiable general obligation bonds authorized by the qualified voters of the City at a special election held on Septem- ber 18, 1979, pursuant to Ordinance No. 3336 passed and approved July 23, 1979, as amended by Ordinance No. 3343 passed and approved August 6, 1979, and Ordinance No. 3350 passed and approved August 20, 1979, for the purpose of constructing recreational facilities including boat launch, fishing pier, trails, day moorage, parking , floating structures, and other equipment and materials incident thereto at the Gene Coulon Memorial Beach Park. The bonds shall be designated "Unlimited Tax General Obligation Park Bonds , 1980, Series A" (the "Bonds" ) of the City; shall be dated March 1 , 1980 ; shall be in denominations of $5,000 each ; shall be numbered from 1 to 1200, inclusive;, and shall bear interest at an effective rate of not to exceed 8% per annum payable on March 1, 1981 , and semi- annually thereafter on each succeeding September 1 and March 1, as evidenced by coupons to be attached to the Bonds representing interest to maturity and with full obligation on the part of the City to pay interest at the bond rate from and after maturity until the Bonds, both principal and interest, are paid in full or until sufficient money for such payment in full is on deposit in the "Unlimited Tax General Obligation Park Bond Fund , 1980" (the "Bond Fund" ) , hereinafter created and the Bonds have been duly called for payment. Both principal of and interest on the Bonds shall be paid in lawful money of the United States of America, which at the time of payment shall be legal tender for the payment of public and private debts , at the office of the City Finance Director , or, at the option of the holder, at either fiscal agency of the State of Washington in Seattle, Washington, or New York, New York. The Bonds shall mature serially, annually, in order of their numbers in the following amounts on March 1 of each of the following years (such maturity schedule being computed at an assumed interest rate of 6 .75% per annum) : Bond Numbers Maturity ( Inclusive) Amounts Years 1 to 32 $160,000 1982 33 to 67 175,000 1983 68 to 104 185,000 1984 105 to 144 200 ,000 1985 145 to 187 215,000 1986 188 to 233 230 ,000 1987 234 to 282 245,000 1988 283 to 334 260,000 1989 335 to 390 280,000 1990 391 to 449 295,000 1991 450 to 512 315,000 1992 513 to 580 340,000 1993 581 to 652 360,000 1994 653 to 729 385,000 1995 730 to 811 410 ,000 1996 812 to 899 440,000 1997 900 to 993 470,000 1998 994 to 1093 500,000 1999 1094 to 1200 535,000 2000 The City reserves the right to redeem any or all of the Bonds prior to their stated maturity dates as a whole , or in part in inverse numerical order, on March 1 , 1990 , or any semiannual 2 - interest payment date thereafter at par plus accrued interest to date of redemption. Notice of such intended redemption shall be published in the official newspaper of the City, or if there is no official newspaper, then in a newspaper of general circulation in King County, at least once not less than 30 nor more than 45 days prior to the call date, and a copy of such notice shall be mailed within the same period to the main office of the principal underwriter or account manager of the successful bidder for the Bonds, or its successor. In addition, such redemption notice shall also be sent to Moody's Investors Service, Inc. , and Standard & Poor 's Corpora- tion, at their offices in New York, New York, but the mailing of such notice to such New York corporations shall not be a condition precedent to the redemption of such Bonds. Interest on any Bonds so called for redemption shall cease on such call date upon payment of the redemption price into the Bond Fund. Section 2. The City hereby irrevocably pledges itself to levy taxes annually, without limitation as to rate or amount, on all property in the City subject to taxation in an amount suffi- cient, together with other money legally available and used there- for , to pay the principal of and interest on the Bonds as the same shall become due, and the full faith, credit and resources of the City are hereby irrevocably pledged for the payment of the principal of and interest on the Bonds. Section 3. The City hereby covenants that it will make no use of the proceeds of the Bonds or of its other money at any time during the term of the Bonds which, if such use had been reasonably expected at the date the Bonds are issued, would have caused the Bonds to be arbitrage bonds within the meaning of 3 - Section 103(c) of the United States Internal Revenue Code of 1954, as amended, and applicable regulations promulgated thereunder. Section 4. The Bonds and coupons shall be printed or lithographed on good bond paper in a form consistent with the provisions of this Ordinance . The Bonds shall be signed by the facsimile signature of the Mayor and attested by the manual signa- ture of the City Clerk and a facsimile reproduction of the seal of the City shall be printed thereon, and the coupons shall bear the facsimile signatures of the Mayor and the City Clerk. Section 5. The Bond Fund is hereby created and estab- lished in the office of the City Finance Director. The accrued interest and premium received, if any, upon the sale and delivery of the Bonds shall be paid into the Bond Fund. There is hereby also created and established in the office of the City Treasurer a special fund to be known and designated as the "Gene Coulon Memorial Beach Park Construction Fund" of the City. The principal proceeds received from the sale and delivery of the Bonds shall be paid into the "Gene Coulon Memorial Beach Park Construction Fund, " and used for the purposes specified in Section 1 of this Ordinance and to pay the costs of issuance and sale of the Bonds. All taxes collected for and allocated to the payment of the principal of and interest on the Bonds shall hereafter be deposited in the Bond Fund. Pending the receipt of the proceeds from the issuance of the Bonds, interest-bearing warrants may be drawn on the "Gene Coulon Memorial Beach Park Construction Fund" to provide interim funds to pay such costs, such loan to be repaid from the proceeds received from the issuance of the Bonds. Section 6. The Bonds shall be sold for cash at public sale for not less than par, plus accrued interest. - 4 - The City Clerk is hereby authorized to give notice call- ing for bids to purchase the Bonds by publishing the same once a week for four consecutive weeks in the official newspaper of the City, or if there is no official newspaper, then in a newspaper of general circulation in King County, and a short abbreviated form of such notice shall also be published once in The Seattle Daily Journal of Commerce and Northwest Construction Record, of Seattle, Washington , at least ten days prior to the sale date. Such notice shall specify that sealed bids for the purchase of the Bonds shall be received by the City Finance Director in her office in the City Hall on March 18 , 1980 , up to 11 :00 a.m. , local time, at which time all bids will be opened and will be considered and award made by the City Council at a continued regular meeting to be held in the City Council Chambers commencing immediately after the opening of all such bids. A copy of the notice shall , at least three weeks prior to the date fixed for the sale, be mailed to the State Finance Committee, Olympia, Washington. Bids shall be invited for the purchase of the Bonds with fixed maturities in accordance with the schedule specified in Section 1 hereof . The notice shall specify the maximum effective rate of interest the Bonds shall bear, namely, 8% per annum, and shall require bidders to submit a bi.d specifying: (a) The lowest rate or rates of interest and premium, if any, above par at which the bidder will purchase the Bonds; or (b) The lowest rate or rates of interest at which the bidder will purchase the Bonds at par. No bid will be considered for the Bonds for less than par and accrued interest. The purchaser must pay accrued interest to date of delivery of the bonds. 5 - Coupon rates shall be in multiples of 1/8th or 1/10th of 1%, or both. No more than one rate of interest may be fixed for any one maturity. Only one coupon will be attached to each of the Bonds for each installment of interest thereon, and bids providing for additional or supplemental coupons will be rejected. The maxi- mum differential between the lowest and highest coupon rates named in any bid shall not exceed 2%. For the purpose of comparing the bids only, the coupon rates bid being controlling, each bid shall state the total inter- est cost over the life of the Bonds and the net effective interest rate of the bid . The Bonds shall be sold to the bidder making the best bid , subject to the right of the City Council to reject any and all bids and to readvertise the Bonds for sale in the manner provided by law, and no bid for less than all of the Bonds shall be considered . The City further reserves the right to waive any irregularity in any bid or in the bidding process. All bids shall be sealed, and , except the bid of the State of Washington, if one is received , shall be accompanied by a deposit of $300, 000. The deposit shall be either by certified check or cashier 's check made payable to the City Finance Director and shall be promptly returned if the bid is not accepted . The City reserves the right to invest the good faith deposit of the purchaser pending the payment for the Bonds. The purchaser shall not be credited for such earnings . If the Bonds are ready for delivery and the successful bidder shall fail or neglect to com- plete the purchase of the Bonds within forty days following the acceptance of its bid , the amount of its deposit shall be forfeited to the City and in that event the City may accept the bid of the one making the next best bid . If there be two or more equal bids 6 - for not less than par plus accrued interest and such bids are the best bids received, the City Council shall determine by lot which bid shall be accepted . The Bonds will be delivered to the success- ful bidder at the office of the City Finance Director or in Seattle, Washington, at the City 's expense, or at such other place as the City Finance Director and the successful bidder may mutually agree upon at the purchaser's expense. A no-litigation certificate in the usual form. will be included in the closing papers. Any bid presented after the time specified for the receipt of bids will not be received and any bid not accompanied by the required bid deposit at the time of opening such bid will not be read or considered. If, prior to the delivery of the Bonds, the income receivable by the holders thereof shall become taxable , directly or indirectly, by the terms of any federal income tax law, the successful bidder may at its option be relieved of its obligation to purchase the Bonds, and in such case the deposit accompanying its bid will be returned, without interest. The notice of bond sale shall provide that the City will cause the Bonds to be printed or lithographed and signed and will furnish the approvinglegal opinion of Messrs.g p s. Roberts, Shefelman, Lawrence, Gay & Moch, municipal bond counsel of Seattle, Washington, covering the Bonds without cost to the purchaser, the opinion also being printed on each bond. Bond counsel shall not be required to review or express any opinion concerning the complete- ness or accuracy of any official statement, offering circular or other sales material issued or used in connection with the Bonds, and bond counsel 's opinion shall so state. Such notice shall also provide that further information regarding the details of the Bonds 7 - may be received upon request made to the City Clerk or to Seattle- Northwest Securities Corporation, 500 Union Street, Seattle, Washington, the City 's financial consultant. Section 7. This ordinance shall take effect from and after its passage and five ( 5) days following its publication as required by law. PASSED by the City Council of the City of Renton, Wash- ington, at a regular open public meeting thereof, this 4th day of February, 1980. &wd DELORES A. MEAD, Vity Clerk APPROVED by the Mayor this 4th day of February, 1980. BARBARA Y. SHINPO p Mayor FORM A OVED: i� Ci Attorney Date of Publication February 13, 1980 8 - I , DELORES A. MEAD, City Clerk of the City of Renton, Washington, hereby certify that the attached copy of Ordinance No. 33qq is a true and correct copy of the original ordinance passed on the 4th day of February, 1980, as such ordinance appears on the Minute Book of the City. DATED this �� day of February, 1980. DELORES A. ME D, Ci y Clerk