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HomeMy WebLinkAboutORD 4390 • , Amended by ORD 4661 ' CITY OF RENTON, WASHINGTON ORDINANCE NO. 4390 AN ORDINANCE of the City of Renton, Washington, relating to contracting indebtedness; providing for the issuance of a $350,000 par value Limited Tax General Obligation Bond, 1993, of the City for general City purposes to provide funds with which to pay the cost of acquiring yard waste carts for Solid Waste Utility residential customers; fixing the date, form, maturities, interest rates, terms and covenants of the bond; establishing a bond redemption fund and acquisition fund; and approving the sale of the bond, and providing for the delivery of the bond to Seattle-First National Bank, in connection with the F1exLine Borrowing Program sponsored by the Association of Washington Cities and the Washington State Association of Counties. WHEREAS, the City of Renton, Washington (the "City") , is in need of acquiring yard waste carts for Solid Waste Utility residential customers, the estimated cost of which is $350, 000; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO ORDAIN as follows: Section I. Debt Capacity. The assessed valuation of the taxable property within the City as ascertained by the last preceding assessment for City purposes for the calendar year 1993 is $3,409,487, 114, and the City has outstanding general indebtedness evidenced by limited tax general obligation bonds, executory sales contracts and leases in the principal amount of $12, 363,712 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, unlimited tax general obligation bonds in the principal amount of $5,200, 000 incurred within the limit of up to 2-1/2� of the value of the taxable property within the City for capital purposes only, issued pursuant to a vote of the qualified voters of the City, and unlimited tax general obligation bonds in the principal amount of $4,755, 000 incurred within the additional limit of up to 2-1/2� of the value of th.e taxable property within the City for parks and open space purpases issued pursuant to a vote of the qualified voters of the City, and the amount of indebtedness for which bonds are authorized herein to be issued is $350, 000. Section II. Authorization of Bond. The City shall borrow money on the credit of the City and issue a negotiable limited tax general obligation bond evidencing that indebtedness in the principal amount of $350,000 for general City purposes to provide the funds to pay the cost of acquiring yard waste carts for Solid 0065555.01 � Waste Utility residential customer (the "Aroject") , to pay the costs of issuance and sale of the bond (the "costs of issuance") . The general indebtedness to be incurred shall be within the limit of up to 3/4 of 1� of the value of the �axable property within the City permitted for general municipal pu�poses without a vote of the qualified voters therein. Section III. Description of Bond. The bond shall be called Limited Tax General Obligation Bond, 1993 (AWC/WSAC F1exLine Program) , of the City (the "Bond") ; shall be a single bond in the initial principal amount of $350,000; shall be dated March 1, 1993; shall be numbered in the manner and with any additional designation as Seattle-First National Bank, as bond registrar (the "Bond Registrar") , deems necessary for purposes of identification; shall be composed of the separate principal installments in amounts maturing on the dates and shall bear interest at the rates set forth below (computed on the basis of a 360-day year of twelve 30-day months) , payable on June 1, 1993, and semiannually thereafter on each succeeding December 1. and June 1; and shall mature in principal installments due on December 1 in years and amounts and bear interest at rates pes annum as follows: Principal Installment Payment Interest Years Amounts Rates 1993 $45, 000 2.80� 1994 45, 000 3 .30 1995 45, 000 3 .80 1996 50,000 4.25 1997 50,000 4.55 1998 55,000 4.75 1999 60,000 4.95 The life of the capital assets to be acquired with the proceeds of the Bond exceeds seven years. Section IV. Registration and Transfer of Bond. The Bond shall be issued only in registered form as to both principal and interest and recorded on books or records maintained by the Bond Registrar (the "Bond Register") . The Bond Register shall contain the name and mailing address of the owner of the Bond. The Bond may be assigned and transferred only in whole and with the prior written consent of the City, which consent shall not be unreasonably withheld. The Bond may be transferred only if endorsed in the manner provided thereon and surrendered to the Bond Registrar. Any exchange or transfer shall be without cost to the owner or transferee. The Bond Registrar shall not be obligated to exchange or transfer the Bond during the gifteen days preceding any principal payment or redemption date. oo6ssss.oi -2- Section V. Payment of Bond. Both principal of and interest on the Bond shall be payable in lawful money of the United States of America. Interest on the Bond shall be paid by check, draft or warrant mailed at least one business day prior to an interest payment date to the registered owner at the address appearing on ' the Bond Register on the fifteenth day of the month preceding that interest payment date. Principal �f the Bond shall be payable in the principal installments due annually on December 1 of each year as set forth in Section III, above, by check, draft or warrant mailed at least one business day prior to that date to the registered owner at the address appearing on the Bond Registrar on the fifteenth day of the month preeeding that principal payment date. However, so long as the Bond is held by the Trustee (as defined in Section XVI) under the F1exLine Program described in Section XVI of this ordinance, both principal of and interest on the Bond shall be payable to that Trus�ee in immediately available funds on the applicable interest or principal payment date. The final installment of principal shall be made only upon the presentation and surrender of the Bond by its registered owner at the office of the Bond Registrar at final maturity or earlier redemption by the City. Section VI. Optional Redemption of Bond. The Bond shall be issued without the right or option of the City to redeem any principal portion of the Bond prior to its stated maturity date. Section VII. Failure to Redeem Bond. If any principal portion of the Bond is not redeemed on its maturity date, the City shall be obligated to pay interest on that portion of the Bond at the same rate provided in the Bond from and after its maturity date until that principal portion, together with interest thereon, is paid in full or until sufficient money for its payment in full is on deposit in the bond redemption fund hereinafter created and that portion of the Bond has been called for payment by giving notice to the registered owner. Section VIII. Pledqe of Taxes. For as long as any portion of the Bond is outstanding, the City irrevocably pledges to include in its budget and levy taxes annually within the constitutional and statutory tax limitations provided by law without a vote of the electors of the City on all of the taxable property within the City , in an amount sufficient, together with other money legally available and to be used therefor, to pay when due the principal of and interest on the Bond, and the full faith, credit and resources of the City are pledged irrevocably for the annual levy and collection of those taxes and the prompt payment of that principal ' and interest. Section IX. Form and Execution of Bond. The Bond shall be typewritten or photocopied on good bond paper in a form consistent with the provisions of this ordinance and state law, shall be signed by the Mayor and City Clerk, either or both of whose signatures may be manual or in facsimile, and the seal of the City oo6ssss.oi -3- or a facsimile reproduction thereof shall be impressed or printed thereon. Only the Bond bsaring a Certificate of Authentication in the following form, manually signed on behalf of the Bond Registrar, shall be valid or obligatory for any purpose or entitled to the benefits of this ordinance: CERTIFICATE OF AUTHENTICATION This bond is the fully registered City of Renton, Washington, Limited Tax General Obligation Bond, 1993 , (AWC/WSAC F1exLine Program) described in the Bond Ordinance. Seattle-First National Bank Bond Registrar By Authorized Officer The authorized signing of a Certificate of Authentication shall be conclusive evidence that the Bonds so authenticated have been duly executed, authenticated and delivered and are entitled �o the benefits of this ordinance. If any officer whose manual or facsimile signature appears on the Bond ceases to be an officer of the City authorized to sign bonds before the Bond bearing his or her manual or facsimile signature are authenticated or delivered by the Bond Registrar or issued by the City, that Bond nevertheless may be authenticated, delivered and issued and, when au�henticated, issued and delivered, shall be as binding on the City as though that person had continued to be an officer of the City authorized to sign bonds. The Bond also may be signed on behalf of the City by any person who, on the actual date of signing of the Bond, is an officer of the City authorized to sign bonds, although he or she did not hold the required office on the date of issuance of the Bond. Section X. Bond Registrar. Seattle-First National Bank is appointed Bond Registrar for the Bond. The Bond Registrar shall keep, or cause to be kept, at its principal corporate trust office, sufficient books for the registration and transfer of the Bond. The Bond Registrar is authorized, on behalf of the City, to authenticate and deliver the Bond transferred or exchanged in accordance with the provisions of the Bond and this ordinance, to serve as the City's paying agent for the Bond and to carry out all of the Bond Registrar's powers and duties under this ordinance, which establishes hereby a system of registration with respect to the Bond. � oo6ssss.oi -4- Section XI. Preservation of Tax Exemption for Interest on I Bonds. The City covenants that it will take all actions necessary i to prevent interest on the Bond from being included in gross income for federal income tax purposes, and it will neither take any action nor make or permit any use of proceeds of the Bond or other funds of the City treated as proceeds of the Bond at any time during the term of the Bond which will cause interest on the Bond to be included in gross income for federal income tax purposes. The City also covenants that it will, to the extent arbitrage rebate requirements of Section 148 of the Internal Revenue Code of 1986, as amended (the "Code") , are applicable to the Bond, take all actions necessary to comply (or to be treated as having complied) with those requirements in connection with the Bond, including the calculation and payment of any other penalties if required under Section 148 of the Code to prevent interest on the Bond from being included in gross income for f ederal income tax purposes. The City certif ies that it has not been notified of any listing or proposed listing by the Internal Revenue Service to the effect that it is a bond issuer whose arbitrage certifications may not be relied upon. Section XII. Desiqnation of Bond as a "Oualified Tax-Exempt Obligation. " The City has determined and certifies that (a) the Bond is not a "private activity bond" within the meaning of Section 141 of the Code; (b) the reasonably anticipated amount o� tax-exempt obligations (other than private activity bonds) which the City and any entity subordinate to the City (including any entity which the City controls, which derives its authority to issue tax- exempt obligations from the City or which issues tax-exempt obligations on behalf of the City) will issue during the calendar year in which the Bond is issued will not exceed $10,000, 000; and (c) the amount of tax-exempt obligations, including the Bond, designated by the City as "qualified tax-exempt obligations" for the purposes of Section 265(b) (3) of the Code during the calendar year in which the Bond is issued does not exceed $10, 000, 000. The City designates the Bond as a "qualified tax-exempt obligation" for the purposes of Section 265(b) (3) of the Code. Section XIII. Bond Neqotiable. The Bond shall be a negotiable instrument to the extent provided by RCW 62A.8-102 and 62A.8-105. Section XIV. Advance Refundinq or Defeasance of the Bond. The i City may issue advance refunding bonds pursuant to the laws of the �� State of Washington or use money available from any other lawful source to pay when due the principal of and interest on the Bond, or any principal installment thereof included in a refunding or defeasance plan, and to redeem and retire, refund or defease such principal installments of the Bond (hereinafter collectively called the "defeased Bond portions") and to pay the costs of the refunding or defeasance. If money and/or "government ob�igations" (as defined in Chapter 39.53 RCW, as now or hereafter amended) maturing at a time or times and bearing interest in amounts (together with money, if necessary) sufficient to redeem and retire, refund or defease the defeased Bond portions in accordance with their terms are set aside in a special trust fund irrevocably pledged to that oo6ssss.oi � -5- redemption and retirement of defeased Bond portions (hereinafter called the "trust account") , . then all right and interest of the owners of the defeased Bond portions in the covenants of this ordinance and in the funds and accounts obligated to the payment of the defeased Bond portions shall cease and become void. The owner of the Bond shall have the right to receive payment of the principal of and interest on the defeased Bond portions from the trust account. The defeased Bond portion� shall be deemed no longer outstanding, and the City may apply any money in any other fund or account established for the payment or redemption of the defeased Bond portions to any lawful purposes as it shall determine. Section XV. Bond Fund and Deposit Bond Proceeds. There is created and established in the office of the City Administrative Services Director a special fund designated as the Limited Tax General Obligation Bond Fund, 1993 (AWC/WSAC F1exLine Program) (the "Bond Fund") . Accrued interest on the Bond, if any, received from the sale and delivery of the Bond shall be paid into the Bond Fund. There has been created and established in the office of the City Administrative Services Director a special fund designated as the Solid Waste Utility Fund (the "Acquisition Fund") . The principal proceeds received from the sale and delivery of the Bond shall be paid into the Acquisition Fund and used for the purposes specified in Section II of this ordinance. Until needed to pay the costs of the Project and costs of issuance, the City may invest principal proceeds temporarily in any legal investment, and the investment earnings may be retained in the Acquisition Fund and spent for the purposes of that fund. All taxes collected for and allocated to the payment of the principal of and interest on the Bond shall be deposited in the Bond Fund. Section XVI. Sale of Bond. The Bond shall be delivered upon its issuance to Seattle-First National Bank, which, as Trustee under the F1exLine Program sponsored by the Association of Washington Cities and the Washington Association of Counties, will execute and deliver certificates of participation in the Bond and remit to the City the proceeds of the sale of those certificates. The Bond shall be sold under the F1exLine Program at a price of par, with fees equal to 2 .8� of the initial principal amount of the Bond. The City Council finds that the sale of the Bond at that price and the payment of that fee is in the City's best interest. The City Council ratifies and confirms the City's "Application to Participate in Association of Washington Cities and Washington State Association of Counties F1exLine Program" and agrees to the terms and conditions set forth in that application, except for the adjustment to fees to reflect the fee amount set forth above. The proper City officials are authorized and directed to do everything necessary for the prompt delivery of the Bond and for the proper application and use of the proceeds of the sale thereof. , The Bond will be prepared at City expense and will be delivered to the purchaser, a�companied by the approving legal opinion of Foster Pepper & Shefelman, municipal bond counsel to the City, regarding the Bond. Bond counsel shall not be required to review 0065555.01 _�_ and shall express no opinion concerning the completeness or accuracy of any official statement, offering circular or other sales material issued or used in connection with the �ond or the certificates of participation related to the Bond, and bond counsel's opinion shall so state. The City Council has been provided with copies of a preliminary official statement dated February 10, 1993, (the "Preliminary Official Statement") , prepared in connection with the sale of the ' certificates of participation in the Bond. For the sole purpose of the certificate underwriter's compliance with Securities and Exchange Commission Rule 15c2-12 (b) (1) , the City "deems final" that Preliminary Official Statement (exclusive of any portion of Appendix A thereto relating to any city other than the City) as of its date, except for the omission of information as to offering ' prices, interest rates, selling compensation, aggregate principal amount, principal amount per maturity, maturity dates, options of redemption, delivery dates, rating and other terms of the certificates dependent on such matters. Section XVII. Effective Date of Ordinance. This ordinance shall take effect and be in force from and after its passage and five days following its publication as required by law. PASSED by the City Council this 22nd day of February, 1993 . Marilyn J. etersen, City Clerk APPROVED BY THE MAYOR this 22nd day of February, 1993. Earl Clymer, yor I Approved as to Form: Date of Publication: Februarv 26., 1993 oo6ssss.oi � I -7-