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HomeMy WebLinkAboutORD 3620 CITY OF RENTON, WASHINGTON ORDINANCE NO. 3620 AN ORDINANCE of the City of Renton, Washington, relating to contracting indebtedness; providing for the issuance, specifying the maturities, maxi- mum effective interest rate, terms and covenants of $2,300,000 par value of "Limited Tax General Obligation Bonds, 1982, " of the City for strictly City purposes to provide funds with which to pay the cost of designing and constructing new shop facilities; establishing a bond redemption fund and a construction fund; and providing for the sale of such bonds. WHEREAS, the City of Renton, Washington (the "City" ) , is in urgent need of designing and constructing new shop facilities, the estimated cost of which is $2, 300,000, and the City does not have available sufficient funds to pay the cost; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO ORDAIN as follows: Section I. The assessed valuation of the taxable property of the City as ascertained by the last preceding assessment for City purposes for the calendar year 1982 is $1,994,506, 518, and the City has outstanding general indebtedness evidenced by limited tax general obligation bonds of $1,050,000 incurred within the limit .of up to 3/4 of 1% of the value of the taxable property within the City permitted for general municipal purposes without a vote of the qualified voters therein and unlimited tax general obligation bonds in the principal amount of $6,000,000 within the limit of up to 2-1/2% of the value of. the taxable property within the City for �l• f, capital purposes only, issued pursuant to a vote of the qualified voters of the City, and the amount of indebtedness for which bonds are herein authorized to be issued is $2,300,000. Section II . The City shall borrow money on the credit of the . City and issue negotiable limited tax general obligation bonds evidencing such indebtedness in the amount of $2,300,000 for general City purposes to provide the funds to pay the cost of, designing and constructing new shop facilities as above described and to pay the cost of the issuance of the Bonds. Such general indebtedness to be incurred shall be within the limit up to 3/4 of 1% of the value of the taxable property within the City permitted for general municipal purposes without a vote of the qualified voters therein. Section III. The Bonds shall be called "Limited Tax General Obligation Bonds, 1982" (the "Bonds" ) , of the City; shall be dated May 1, 1982; shall be in the denomination of $5,000 each; shall be numbered from l to 460, inclusive; and shall bear interest at the rate or rates specified in the winning bid for the Bonds, but not in excess of an effective rate of 16% per annum, payable on May 1, 1983, and semiannually thereafter on each succeeding November 1 and May 1 as evidenced by coupons to be attached to the Bonds represent- ing interest to maturity. If any Bond is not redeemed upon proper presentment at its maturity or call date thereof, the City shall be obligated to pay interest at the coupon rate for each such Bond from and after the maturity or call date until such Bond, both 2 - ,r principal and interest, shall have been paid in full or until suffi- cient money for such payment in full is on deposit in the "Limited Tax General Obligation Bond Fund, 1982" (the "Bond Fund" ) , herein- after created and such Bond has been duly called for payment. Both principal of and interest on the Bonds are to 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 follow- ing amounts on May 1 of each of the following years (such maturity schedule being computed at an assumed interest rate of 13.508 per annum) : Bond Numbers Maturity (Inclusive) Amounts Years 1 to 6 $ 30,000 1984 7 to 13 35,000 1985 14 to 21 40,000 1986 22 to 30 45,000 1987 31 to 40 50,000 1988 41 to 52 60,000 1989 53 to 65 65,000 1990 66 to 80 75,000 1991 81 to 97 85,000 1992 98 to 116 95,000 1993 117 to 138 110,000 1994 139 to 163 125,000 1995 164 to 191 140,000 1996 192 to 223 160,000 1997 224 to 259 180,000 1998 260 to 300 205,000 1999 301 to 347 235,000 2000 348 to 400 265,000 2001 401 to 460 300,000 2002 3 - .t /i 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 May 1 , 1992, or any semiannual interest payment date thereafter at par plus accrued interest at - the follow- ing percentages of par if called on the following dates, plus . accrued interest to date of redemption: Call Dates Call Prices On May 1 , 1992, or November 1, 1992 101% On May 1 , •1993 , or November 1, 1993 100. 5% On May 1 , 1994 , and thereafter 100% Notice of such intended redemption shall be published in the official newspaper of the City or, if there is no official news- paper, then in a newspaper of general circulation in the City, 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 be sent to Moody' s Investors Service, Inc. , and Standard & Poor' s Corporation, at their offices in New York, New York, but the mailing of such notice to such .New York firms 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. The City further reserves the right to purchase any or all of the Bonds in the open market at any time at a price not in excess 4 - i f ff of the redemption price on the next call date after such purchase plus accrued interest to date of purchase. Section IV. The City irrevocably pledges to levy taxes annu- ally, within the constitutional and statutory tax limitations provided by law without a vote of the electors of the City, - upon - all property in the City subject to taxation in an amount suffi- cient, together with other money legally available and to be' used therefor, to pay the principal of and interest on the Bonds as the same shall accrue, and the full faith, credit and resources of the City are pledged irrevocably for the payment of the principal of and interest on the Bonds. Section V. The City covenants that it will spend the princi- pal proceeds of the Bonds with due diligence to completion of the , purposes specified in this ordinance and 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 will cause the Bonds to be arbitrage bonds within the meaning of -Section 103(c) of the United States Internal Revenue Code of 1954, as amended, and applicable regulations promulgated thereunder. Section VI. The Bonds and coupons shall be printed or litho- graphed 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, attested by the manual signature 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. 5 - A . 1 I Section VII. The Bond Fund is created and established in the office of the City Finance Director. The accrued interest received, if any, upon the sale and delivery of the Bonds shall be paid into the Bond Fund. There is also created and established in the office of the City Finance Director a special fund to be known and desig- nated as the "Shop Facilities Construction Fund, 1982, " of the City. The principal proceeds and premium, if any, received from the sale and delivery of the Bonds shall be paid into the "Shop Facilities Construction Fund, 1982," and used for the purposes specified in Section II of this ordinance and to pay the costs of issuance and sale of the Bonds. Pending the expenditure of such principal proceeds, the City may temporarily invest such proceeds in any legal investment and the investment earnings may be retained in the "Shop Facilities Construction Fund, 1982," and expended for the purposes of such fund. 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 "Shop Facilities Construction Fund, 1982, " to provide interim funds to pay such costs, such loan to be repaid from the proceeds received from the issuance of the Bonds. Sec-tion VIII. The Bonds shall be sold for cash at 'public sale for not less than par, plus accrued interest. The City Clerk is authorized to give notice calling for bids to purchase the Bonds by publishing such notice as required by 6 - s Af / law, and a short abbreviated form of such notice shall also be - lished 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 Clerk in her office in the City Hall on May 3, 1982, up to 11:00 a.m. , local time, at which time all bids will be publicly opened and read and an award made by the City Council at its regular meeting to be held in the City Council Chambers commencing at 8:00 p.m. , local time on the same date. , Bids shall be invited for the purchase of the Bonds with fixed maturities in accordance with the schedule specified in Section III hereof. The notice shall specify the maximum effective rate of inter- est the Bonds shall bear, Hamel rater- y, 16$ per annum, and shall require bidders to submit a bid 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 or for less than the entire issue. The purchaser must pay accrued interest to date of delivery of the bonds. Coupon rates shall be in multiples of 1/8 or 1/20 of 1%, or both. No more than one rate of interest may be fixed for any one 7 _ 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 maximum differential between the lowest and highest coupon rates named in any bid shall not exceed 38. For the purpose of comparing the bids only, the coupon rates bid being controlling, each bid shall state the total interest 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 $115,000. The deposit shall be either by certified or cashier's check made payable to the City Finance Director and shall be returned promptly 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 success- ful bidder shall fail or neglect to complete the purchase of the Bonds within forty days following the acceptance of its bid, the 8 - 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 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 successful bidder upon payment of the purchase price plus accrued interest to the date of delivery, less the amount of the good faith deposit, at the office of the City Clerk or in Seattle, Washington, at the City's expense, or at such other place as the City Clerk and the successful bidder may mutually agree upon at the purchaser's expense. Settlement shall be made in federal funds immediately available at the time of delivery of the Bonds. A no-litigation certificate in the usual form will be included in the closing papers. CUSIP numbers will be printed on the Bonds, if requested in the bid of the successful bidder, but neither failure to print such numbers on any bond nor error with respect thereto shall con- stitute cause for a failure or refusal by the purchaser thereof to accept delivery of, and pay for the Bonds in accordance with the terms of the purchase contract. All expenses in relation to the printing of CUSIP numbers on the Bonds shall be paid by the City, but the fee of the CUSIP Service Bureau for the assignment of those numbers shall be the responsibility of and shall be paid by the purchaser. 9 - i �f 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 will not be read or considered. If, prior to the delivery of the Bonds, the interest receiv- able by the holders thereof shall become taxable, dirgctly or indirectly, by .the terms of any federal income tax law, the suc- cessful 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 approving legal opinion of Messrs. Roberts & Shefelman (Roberts, Shefelman, Lawrence, Gay & Moch) , bond counsel of Seattle, Washing- ton, 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 completeness 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 may be received upon request made to the City Clerk or to Seattle-Northwest 10 - Securities Corporation, Seattle, Washington, the City' s financial consultant. PASSED by the City Council of the City of Renton, Washington, at a regular open public meeting thereof, this 12th day of April, 1982. DELORES A. MEAD, City Clerk APPROVED by the Mayor this 12fh day of April, 1982 . ��„R,-�, . S o tee•. BARBARA Y. SH NPOCH, Mayor FORM APPROVED: City Attorney Publication Date: April 18 , 1982 - 11 - f f I, DELORES A. MEAD, City Clerk of the City of Renton, Washington, certify that the attached copy of Ordinance No. 3( ::O is a true and correct copy of the original ordinance passed on the 12th day of April , 1982, as such ordinance appears on the Minute Book of the City. DATED this day of April, 1982. DELORES A. MEAD, Ci Clerk JG27B/1