HomeMy WebLinkAboutORD 4417 Amends' ORD. 4�3729, 3734,
' 4200
- x�'$ ,r�i�a� """, .•�-^�
. �`a'-„
- I
I
CITY OF RENTON, WASHINGTON
ORDINANCE NO. 4417 �
AN ORDINANCE of the City of Renton, Washington,
reiating to contracting indebtedness; providing for the
issuance of $4,270,000 par value of Unlimited Tax General
Obligation Refunding Bonds, 1993, Series A, of the City
to provide funds with which to pay the cost of refunding
the callable portion of the City�s outstanding Unlimited
Tax General Obligation Bonds, 1989, and the costs of
issuance and sale of the Series A bonds, and for the
issuance of $4, 660, 000 par value of Unlimited Tax General
Obligation Refunding Bonds, 1993, Series B (Taxable) , of
the City to provide funds with which to pay the cost of
refunding all of the City's outstanding Unlimited Tax
General Obligation Refunding Bonds, 1983, and the costs '�,
of issuance and sale of the Series B bonds; fixing the
date, form, maturities, interest rates, terms and
covenants of those bonds; establishing a bond redemption
fund; providing for and authorizing the purchase of
certain obligations out of the proceeds of the sale of
the refunding bonds herein authorized and for the use and
application of the money derived from those investments; i
authorizing the execution of a contract with Seattle-
First National Bank of Seattle, Washington, as refunding
trustee or escrow agent; and approving the sale and
providing for the delivery of the bonds to Seattle-
Northwest Securities Corporation of Seattle, Washington.
WHEREAS, pursuant to Ordinance No. 3729 passed June 13, 1983,
as amended by Ordinance No. 3734 passed June 27, 1993, the City of
Renton, Washington (the "City") , heretofore issued its Unlimited
Tax General Obligation Refunding Bonds, 1983 (the "1983 Bonds") , in
the original principal amount of $?, 140, 000, and by Section 1 of
Ordinance No. 3729, as amended, the City reserved the right and
option to redeem the 1983 Bonds maturing on or after May 1, 1994,
on May l, 1993, and on any interest payment date thereafter, at par
p�u� accrued interest to the date fixed for redemption; and
WHEREAS, there are presently outstanding $4,385,000 principal
amount of 1983 Bonds scheduled to mature on May 1 of each of the
oo9sa�.oz
I
ORDINANCE NO. 4417
years 1994 through 2002, inclusive, bearing interest at various
n n
rates from 9.40� to 10.00$ the 1983 Refunded Bonds • and
( ) r
WHEREAS, pursuant to Ordinance No. 4200 passed February 6, �
1989, the City heretofore issued its Unlimited Tax General
Obligation Bonds, 1989 (the "1989 Bonds") , in the original '
principal amount of $5,500,000, and by Section VII of that
ordinance the City reserved the right and option to redeem the
1989 Bonds maturing on or after February 1, 2000, on February 1,
i999, and on any interest payment date thereafter, at par plus
accrued interest to the date fixed for redemption; and
WHEREAS, there are presently outstanding $3,775,000 principal
amount of 1989 Bonds scheduled to mature on February 1 of each of
the years 2000 through 2009, inclusive, bearing interest at various
rates from 6.75� to 7.20� (the "1989 Refundecl Bonds") ; and
WHEREAS, the City Council has determined that the 1983
Refunded Bonds and the 1989 Refunded Bonds (collectively, the
"Refunded Bonds") may be refunded by the issuance and sale of the
general obligation bonds authorized herein (the "Bonds") so that a
substantial saving will be effected by the difference between the
principal and interest costs over the life of the Bonds and the
principal and interest costs over the life of the outstanding
Refunded Bonds but for such refunding, which refunding will be
ef f ected by
, (a) The issuance of the Bonds;
(b) The call, payment and redemption on November 1,
1993, of all the outstanding 1983 Refunded Bonds at a
rice of ar• and
P P �
oo9sa�.o2
-2-
ORDINANCE NO. 4417
(cj The payment of the interest on the 1989
Refunded Bonds when due up to and including February 1,
1999, and, on February 1, 1999, the call, payment and
redemption of all the outstanding 1989 Refunded Bonds at
a price of par;
and
WHEREAS, to effect that refunding in the manner that will be
most advantageous to the City and its taxpayers, the City Council
finds it necessary and advisable that certain acquired obligations
(hereinafter defined) bearing interest and maturing at the time or
times necessary to accomplish the refunding of the Refunded Bonds
be purchased out of the proceeds of the sale of the Bonds; and
WHEREAS, the City Council has determined that it is necessary
to issue and sell $8,860,000 par value of unlimited tax general
obligation refunding bonds as two series of bonds to provide the
funds necessary to refund the Refunded Bonds and to pay the costs ,
of the refunding and the issuance and sale of the Bonds, and
Seattle-Northwest Securities Corporation has offered to purchase
the Bonds under the terms and conditions hereinafter set forth; ,
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 $3,429,366, 124. The City has outstanding general indebtedness i
evidenced by (a) limited tax general obligation bonds and
conditional sales contracts in the principal amount of $12,294, 152
0095496.02
-3-
ORDINANCE NO. 4417
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 (b)
unlimited tax general obligation bonds in the principal amount of
$9,420,000 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, of
which $8, 160, 000 will be refunded from the proceeds of the issuance
and sale of the Bonds authorized herein. The amount of
indebtedness for which the Bonds are authorized herein to be issued
is $8,930, 0000.
SECTION II. Authorization of Bonds. The City shall borrow
money on the credit of the City and issue negotiable unlimited tax
general obligation refunding bonds evidencing that indebtedness in
two series in the amounts of $4,660,000 and $4,270,000,
respectively, for the purpose of providing the funds required to:
(a) Call, pay and redeem on November 1, 1993, all
the outstanding 1983 Refunded Bonds at a price of par;
and
(b) Pay the interest on the 1989 Refunded Bonds
when due up to and including February 1, 1999, and, on
February 1, 1999, call, pay and redeem all the
outstanding 1989 Refunded Bonds at a price of par;
(collectively, the "Refunding Plan") , and to pay the costs of the
refunding and the issuance and sale of the Bonds. The Bonds shall
be issued in two series as set forth in Section III. The proceeds
of the Series A .Bonds shall be used to carry out the portion of the
Refunding Plan relating to the 1989 Refunded Bonds and any costs
oo�sa�.oz
-4-
ORDINANCE NO. 4417
relating thereto and the proceeds of the Series B Bonds shall be
used to carry out the portion of the Refunding Plan relating to the
1983 Refunded Bonds and any costs relating thereto.
SECTION III. Description of Bonds. The Bonds shall be issued
in two series and shall be called the Unlimited Tax General
Obligation Refunding Bonds, 1993, Series A (the "Series A Bonds") ,
and the Unlimited Tax General Obligation Refunding Bonds, 1993,
Series B (Taxable) (the "Series B Bonds") of the City, which
Series A Bonds and Series B Bonds shall sometimes collectively be
referred to herein as the Bonds. The Bonds shall be dated
September 1, 1993; shall be in the denomination of $5,000 or any
integral multiple thereof within a single maturity; shall be
numbered separately in the manner and with any additional
designation as the Bond Registrar (collectively, the fiscal
agencies of the State of Washington located in Seattle, Washington,
and New York, New York) deems necessary for purposes of
identification; shall bear interest at the rates set forth below
(computed on the basis of a 360-day year of twelve 30-day months) .
(a) Series A Bonds. The Series A Bonds shall be in the
aggregate principal amount of $4,270, 000; shall bear interest
payable on February 1, 1994, and semiannually thereafter on each
succeeding August 1 and February 1; and shall mature on February 1
in years and amounts and bear interest at the rates per annum as
follows:
oo9sa�.o2
-5-
ORDINANCE NO. 4417
Maturity Principal Interest �
Dates Amounts Rates '
1994 $ 30,000 2.70�
1995 40,000 3 .30
1996 40,000 3 .70
1997 45,000 4.00
1998 45,000 4. 10
1999 50,000 4.30
2000 315, 000 4.40
2001 330,000 4.50
2002 345, 000 4.60
2003 365,000 4.70
2004 385,000 4.80
2005 410,000 4.90
2006 430,000 5.00
2007 455,000 5. 10
2008 480,000 5.125
2009 505,000 5.20
All of the principal amount of the Series A Bonds maturing in the
years 1994 through 1999, inclusive, and $245, 000 of the principal
amount of the Series A Bonds maturing in the year 2000 shall
constitute nonvoted debt of the City.
(b) Series B Bonds. The Series B Bonds shall be in the
aggregate principal amount of $4, 660, 000; shall bear interest
payable on November 1, 1993, and semiannually thereafter on each
succeeding May 1 and November 1; and shall mature on May 1 in years
and amounts and bear interest at the rates per annum as follows:
Maturity Principal Interest
Dates Amounts Rates
I 1994 $600,000 4. 00�
1995 545,000 4.40
1996 575,000 5.00
1997 605,000 5.20 I
1998 655,000 5.45 !
1999 680,000 5.65
2000 730,000 5.85
2001 130, 000 6.00
2002 140, 000 6.10
oo9sa�.o2
-6-
ORDINANCE NO. 4417
$275,000 of the principal amount of the Series B Bonds maturing in
the year 1994 shall constitute nonvoted debt of the City. It is
the intention of the City that the interest on the Series B Bonds
shall be included in gross income for federal income tax purposes.
SECTION IV. Registration and Transfer of Bonds. The Bonds
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 each Bond and the
principal amount and number of each of the Bonds held by each
owner.
Bonds surrendered to the Bond Registrar may be exchanged for
Bonds of the same series in any authorized denomination of an equal
aggregate principal amount and of the interest rate and maturity. �
Bonds 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 any
Bond during the 15 days preceding any principal payment date.
SECTION V. Payment of Bonds. Both principal of and interest
on the Bonds shall be payable in lawful money of the United States
of America. Interest on the Bonds shall be paid by checks or i
drafts of the Bond Registrar mailed on the interest payment date to
the registered owners at the addresses appearing on the Bond
Register on the 15th day of the month preceding the interest
payment date. Principal of the Bonds shall be payable upon
ao9sa�.oz
-7-
ORDINANCE NO. 4417 �
presentation and surrender of the Bonds by the registered owners at
either of the principal offices of the Bond Registrar at the option
of the owners.
SECTION VI. O�tional Redem�tion and Open Market Purchase of
Bonds. Series A Bonds maturing in the years 1994 through 2003,
inclusive, and all of the Series B Bonds shall be issued without �I
the right or option of the City to redeem those Bonds prior to
their stated maturity dates. The City reserves the right and
option to redeem the Series A Bonds maturing on or after I,
February 1, 2004, prior to their stated maturity dates on or after �
February 1, 2003, as a whole at any time, or in part on any
interest payment date within one or more maturities selected by the
City (and by lot within a maturity in such manner as the Bond
Registrar shall determine) , at par plus accrued interest to the
date fixed for redemption.
Portions of the principal amount of any Series A Bond, in ,
installments of $5, 000 or any integral multiple thereof, may be
redeemed. If less than all of the principal amount of any Series A
Bond is redeemed, upon surrender of that Bond at either of the
principal offices of the Bond Registrar, there shall be issued to
the registered owner, without charge therefor, a new Series A Bond
(or Series A Bonds, at the option of the registered owner) of the
same maturity and interest rate in any of the denominations
authorized by this ordinance in the aggregate total principal
amount remaining unredeemed.
oo9sa�.oz
-8-
� ORDINANCE NO. 4417
� The City reserves the right and option to purchase any or all
of the Bonds in the open market at any time at a price not in
excess of par plus accrued interest to the date of purchase.
All Bonds purchased or redeemed under this section shall be
cancelled.
SECTION VII. Notice of Redemption. The City shall cause i
notice of any intended redemption of Series A Bonds to be given not '�
less than 30 nor more than 60 days prior to the date fixed for
redemption by first-class mail, postage prepaid, to the registered
owner of any Series A Bond to be redeemed at the address appearing '
on the Bond Register at the time the Bond Registrar prepares the
notice, and the requirements of this sentence shall be deemed to
have been fulfilled when notice has been mailed as so provided, '
whether or not it is actually received by the owner of any Bond.
Interest on Series A Bonds called for redemption shall cease to
accrue on the date fixed for redemption unless the Bond or Bonds
called are not redeemed when presented pursuant to the call. In
addition, the redemption notice shall be mailed within the same
period, postage prepaid, to Moody's Investors Service, Inc. , and I
Standard & Poor's Corporation at their offices in New York, New
York, or their successors, to Seattle-Northwest Securities
Cor oration at its rinc'
p p ipal office in Seattle, Washington, or its
successor, and to such other persons and with such additional
information as the City Administrative Services Administrator shall
determine, but these additional mailings shall not be a condition
precedent to the redemption of Series A Bonds.
oo9sa�.az
-9-
�
�
ORDINANCE NO. 4417
SECTION VIII. Failure to Redeem Bonds. If any Bond is not
redeemed when properly presented at its maturity or call date, the
City shall be obligated to pay interest on that Bond at the same
rate provided in the Bond from and after its maturity or call date
until that Bond, both principal and interest, is paid in full or
until sufficient money for its payment in full is on deposit in the
bond redemption fund hereinafter created and the Bond has been
called for payment by giving notice of that call to the registered
owner of that unpaid Bond.
SECTION IX. Pledge of Taxes. For as long as any of the Bonds
are outstanding, the City irrevocably pledges to levy taxes
annually without limitation as to rate or amount 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 Bonds, 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 X. Form and Execution of Bonds. The Bonds shall be
printed or lithographed 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 I
signatures may be manual or in facsimile, and the seal of the City
or a facsimile reproduction thereof shall be impressed or printed
thereon.
oo9sa�.oz
-10-
ORDINANCE NO. 4417
Only Bonds bearing a Certificate of Authentication in the
following form, manually signed by 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 one of the fully registered City of
Renton, Washington, Unlimited Tax General Obligation
Refunding Bonds, 1993, Series [A/B (Taxable) ] , described
in the Bond Ordinance.
WASHINGTON STATE FISCAL AGENCY
Bond Registrar
By �
Authorized Signer
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 to the
benefits of this ordinance.
If any officer whose facsimile signature appears on the Bonds
ceases to be an officer of the City authorized to sign bonds before
the Bonds bearing his or her facsimile signature are authenticated
or delivered by the Bond Registrar or issued by the City, those
Bonds nevertheless may be authenticated, delivered and issued and,
when authenticated, 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. Any 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,
ao9sa�.o2
-11-
ORDINANCE NO. 4417
although he or she did not hold the required office on the date of
issuance of the Bonds.
SECTION XI. Bond Registrar. 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 Bonds
which shall be open to inspection by the City at all times. The
Bond Registrar is authorized, on behalf of the City, to
authenticate and deliver Bonds transferred or exchanged in
accordance with the provisions of the Bonds and this ordinance, to
serve as the City's paying agent for the Bonds and to carry out all
of the Bond Registrar's powers and duties under this ordinance and
City Ordinance No. 3755 establishing a system of registration for
the City's bonds and obligations.
The Bond Registrar shall be responsible for its
representations contained in the Bond Registrar's Certificate of
Authentication on the Bonds. The Bond Registrar may become the
owner of Bonds with the same rights it would have if it were not
the Bond Registrar and, to the extent permitted by law, may act as ''
depository for and permit any of its officers or directors to act
as members of, or in any other capacity with respect to, any
committee formed to protect the rights of Bond owners. i
SECTION XII. Preservation of Tax Exemption for Interest on �
Series A Bonds. The City covenants that it will take all actions
necessary to prevent interest on the Series A Bonds 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
oo9sa�.oz
-12-
ORDINANCE NO. 4417
of the Series A Bonds or other funds of the City treated as
proceeds of the Series A Bonds at any time during the term of the
Series A Bonds which will cause interest on the Series A Bonds to
be included in gross income for federal income tax purposes. The
City also covenants that, to the extent arbitrage rebate
requirements of Section 148 of the Internal Revenue Code of 1986, �
as amended (the "Code") , are applicable to the Series A Bonds, it I
will take all actions necessary to comply (or to be treated as
having complied) with those requirements in connection with the I�',
Series A Bonds, including the calculation and payment of any '
penalties that the City has elected to pay as an alternative to
calculating rebatable arbitrage, and the payment of any other
penalties if required under Section 148 of the Code to prevent '
interest on the Series A Bo�ds from being included in gross income
for federal income tax purposes. The City certifies 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 XIII. Bonds Negotiable. The Bonds shall be
negotiable instruments to the extent provided by RCW 62A.8-102 and
62A.8-105.
SECTION XIV. Advance Refunding or Defeasance of the Bonds.
The 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
Bonds, or any portion thereof included in a refunding or defeasance
ao9sa�.oi
-13-
I
ORDINANCE NO. 4417
plan, and to redeem and retire, release, refund or defease all such
then-outstanding Bonds (hereinafter collectively called the
"defeased Bonds") and to pay the costs of the refunding or
defeasance. If money and/or "government obligations" (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, release, refund or
defease the defeased Bonds in accordance with their terms are set
aside in a special trust fund irrevocably pledged to that
redemption and retirement of defeased Bonds (hereinafter called the
"trust account") , then all right and interest of the owners of the
defeased Bonds in the covenants of this ordinance and in the funds
and accounts obligated to the payment of the defeased Bonds shall
cease and become void. The owners of defeased Bonds shall have the
right to receive payment of the principal of and interest on the
defeased Bonds from the trust account. The defeased Bonds 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 Bonds to any lawful purposes as it shall determine.
, SECTION XV. Bond Fund and Deposit of Bond Proceeds. There is
created and established in the office of the Finance Director of
the City a special fund designated as the Unlimited Tax General
Obligation Refunding Bond Fund, 1993 (the "Bond Fund") . Accrued
interest on the Bonds, if any, received from the sale and delivery
of the Bonds shall be paid into the Bond Fund. All principal
proceeds of the Bonds shall be deposited in accordance with the
oo9sa�.oz
-14-
ORDINANCE NO. 4417
provisions of Section XVI of this ordinance. All taxes collected
for and allocated to the payment of the principal of and interest
on the Bonds shall be deposited in the Bond Fund.
SECTION XVI. Refundinq of the Refunded Bonds. �
(a) Appointment of Refundinq Trustee. Seattle-First National
Bank of Seattle, Washington, is appointed the Refunding Trustee or
Escrow Agent and is herein called the Refunding Trustee. �
(b) Acquisition of Acquired Obliaations. All of the proceeds
of the sale of the Bonds except for the accrued interest received,
if any, which shall be deposited in the Bond Fund, shall be
deposited immediately upon the receipt thereof with the Refunding
Trustee to discharge the obligation of the City to carry out the
Refunding Plan by providing for the payment of the amounts required
to be paid by the Refunding Plan. To the extent practicable, such
obligations shall be discharged fully by the Refunding Trustee's
simultaneous purchase of United States Treasury Certificates of
Indebtedness and/or Notes--State and Local Government Series or
other direct, noncallable obligations of the United States of
America (the "Acquired Obligations") , bearing such interest and
maturing as to principal and interest in such amounts and at such
times so as to provide, together with a beginning cash balance, if
necessary, for the payment of the amounts required to be paid by
the Refunding Plan. The Acquired Obligations are listed and more
particularly described in Schedule A attached to the Refunding
Trust Agreement between the City and the Refunding Trustee, but are
subject to substitution as set forth below.
oo9sa�.oa
-15-
ORDINANCE NO. 4417 I
(c) Substitution of Acquired Obligations. Prior to the
purchase of any such Acquired Obligations, the City reserves the �
right to substitute other direct, noncallable obligations of the
United States of America ("Government Obligations") for any of the
Acquired Obligations and to use any savings created thereby for any
lawful City purpose if, (a) in the opinion of Foster Pepper &
Shefelman, the City's bond counsel, the interest on the Series A
Bonds will remain excluded from gross income for federal income tax
purposes under Sections 103, 148 and 149 (d) of the Code, and (b)
such substitution shall not impair the timely payment of the
amounts required to be paid by the Refunding Plan, so verified by
an independent nationally recognized firm of certified public ,
accountants.
After the purchase of the Acquired Obligations by the
Refunding Trustee, the City reserves the right to substitute
therefor cash or Government Obligations subject to the conditions
that such money or securities held by the Refunding Trustee shall
be sufficient to carry out the Refunding Plan, that such
substitution will not cause the Series A Bonds to be arbitrage
bonds within the meaning of Section 148 of the Code and regulations
thereunder in effect on the date of such substitution and
applicable to obligations issued on the issue date of the Bonds,
and that the City obtain, at its expense: (1) verification by an
�I independent nationally recognized firm of certified public
accountants acceptable to the Refunding Trustee confirming that the
payments of principal of and interest on the substitute Ac uired
q
oo9sa�.oa
-16-
ORDINANCE NO. 4417
Obligations, if paid when due, and any other money held by the
Refundin Trustee will be sufficient to carr out the Refundin
g Y 5
Plan; and (2) an opinion from Foster Pepper & Shefelman, bond
counsel to the City, its successor, or other nationally recognized
bond counsel to the City, to the effect that the disposition and
substitution or purchase of such securities, under the statutes,
rules and regulations then in force and applicable to the Bonds,
will not cause the interest on the Series A Bonds or the Refunded
Bonds to be included in gross income for federal income tax
purposes and that such disposition and substitution or purchase is
in compliance with the statutes and regulations applicable to the
Bonds. Any surplus money resulting from the sale, transfer, other
disposition or redemption of the Acquired Obligations and the
substitutions therefor shall be released from the trust estate and
transferred to the City to be used for any lawful City purpose.
(d) Administration of Refunding Plan. The Refunding Trustee
is authorized and directed to purchase the Acquired Obligations (or �
substitute obligations) and to make the payments required to be
made by the Refunding Plan from the Acquired Obligations (or
substitute obligations) and money deposited with the Refunding
Trustee pursuant to this ordinance. All Acquired Obligations (or
substitute obligations) and the money deposited with the Refunding I
Trustee and any income therefrom shall be held irrevocably,
invested and applied in accordance with the applicable provisions
of Ordinances No. 3729, as amended, and 4200, this ordinance,
Chapter 39.53 RCW and other applicable statutes of the State of
oo9sa�.oz
-17-
ORDINANCE NO. 4417 I
Washington, and the Refunding Trust Agreement. All necessary and �i
proper fees, compensation and expenses of the Refunding Trustee for
the Bonds and all other costs incidental to establishing the escrow
to accomplish the refunding of the Refunded Bonds and costs related
to the issuance and delivery of the Bonds, including bond printing,
rating service fees, verification fees, bond counsel's fees and '�
other related expenses, shall be paid out of the proceeds of the �
Bonds.
(e) Authorization for Refunding Trust Agreement. To carry
out the Refunding Plan provided for by this ordinance, the Mayor or
Finance Director is authorized and directed to execute and deliver
to the Refunding Trustee a Refunding Trust Agreement substantially
in the form on file with the City Clerk and by this reference made
a part hereof, setting forth the duties, obligations and
responsibilities of the Refunding Trustee in connection with the
payment, redemption and retirement of the Refunded Bonds as
provided herein and stating that the provisions for payment of the
fees, compensation and expenses of the Refunding Trustee set forth
therein are satisfactory to it. Prior to executing the Refunding
Trust Agreement, the Mayor or Finance Director is authorized to
make such changes therein which do not change the substance and
purpose thereof or which assure that the escrows provided therein
and the Bonds are in compliance with the requirements of federal
law governing the exclusion of interest on the Bonds from gross
income for federal income tax purposes.
oovsa�.o2
-18-
I ORDINANCE NO. 4417
SECTION XVII. Call for Redemption of the Refunded Bonds. The
City calls for redemption on November 1, 1993, all of the 1983
Refunded Bonds at par plus accrued interest. The City calls for
redemption on February 1, 1999, all of the 1989 Refunded Bonds at
par plus accrued interest. Such calls for redemption shall be ,
irrevocable after the delivery of the Bonds to the initial
purchaser thereof. The dates on which the Refunded Bonds are I�
called for redemption are the earliest dates, respectively, on
which those Refunded Bonds may be called for redemption.
The proper City officials are authorized and directed to cause
the fiscal agencies to give such notices as required, at the times
and in the manner required by Ordinance No. 3729, as amended, in
order to effect the redemption prior to their maturities of the
1983 Refunded Bonds, and at the times and in the manner required by
Ordinance No. 4200 in order to effect the redemption prior to their �
maturities of the 1989 Refunded Bonds.
SECTION XVIII. City Findinqs with Respect to Refundinq. The '
City Council finds and determines that the issuance and sale of the ,
Bonds at this time will effect a saving to the City and its '
taxpayers and is in the best interest of the City and in the public �
interest. In making such finding and determination, the City
Council has given consideration to the fixed maturities of the
Bonds and the Refunded Bonds, the costs of issuance of the Bonds '
and the known earned income from the investment of the proceeds of
the issuance and sale of the Bonds and other money of the City used
oo9sa�.o2
-19-
ORDINANCE NO. 4417
in the Refunding Plan pending payment and redemption of the
Refunded Bonds. '
The City Council further finds and determines that the money
to be deposited with the Refunding Trustee for the Refunded Bonds
in accordance with Section XVI of this ordinance, together with
known earned income from the investments thereof, will be
sufficient to carry out the Refunding Plan and discharge and
satisfy the obligations of the City under Ordinance No. 3729, as
amended, with respect to the 1983 Refunded Bonds and under
Ordinance No. 4200 with respect to the 1989 Refunded Bonds and the
pledges, charges, trusts, covenants and agreements of the City I
therein made or provided for as to the Refunded Bonds and that the I
Refunded Bonds shall no longer be deemed to be outstanding under ,
such ordinances immediately upon the deposit of such money with the
Refunding Trustee.
SECTION XIX. Approval of Bond Purchase Contract. Seattle-
Northwest Securities Corporation of Seattle, Washington, has
presented a purchase contract dated August 23, 1993 (the "Bond
Purchase Contract") , to the City offering to purchase the Bonds
under the terms and conditions provided in the Bond Purchase
Contract, which written Bond Purchase Contract is on file with the
City Clerk and is incorporated herein by this reference. The City
Council finds that entering into the Bond Purchase Contract is in
the City's best interest and therefore accepts the offer contained
therein and authorizes its execution by the Mayor.
0095496.Q2
-20-
ORDINANCE NO. 4417
The Bonds will be printed at City expense and will be
delivered to the purchaser in accordance with the Bond Purchase '
Contract, with the approving legal opinion of Foster Pepper &
Shefelman, municipal bond counsel of Seattle, Washington, regarding
the Bonds printed on each Bond. Bond counsel shall not be required
to review 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 Bonds, and
bond counsel's opinion shall so state.
The proper City officials are authorized and directed to do
everything necessary, including reviewing and executing the final
official statement, for the prompt delivery of the Bonds to the
purchaser and for �the proper application and use of the proceeds of
the sale thereof.
SECTION XX. Preliminary Official Statement Deemed "Final".
The City Council has been provided with copies of a preliminary
official statement dated August 12, 1993 (the "Preliminary Official
Statement") , prepared in connection with the sale of the Bonds.
For the sole purpose of the purchaser's compliance with Securities
and Exchange Commission Rule 15c2-12 (b) (1) , the City "deems final"
that Preliminary Official Statement 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, ratings, and other terms of the Bonds dependent on such
matters.
oo9sa�.o2
-21- �
ORDINANCE NO. 4417
SECTION XXI. Temporary Bonds. Pending the printing,
execution and delivery to the purchaser of definitive Bonds, the
City may cause to be executed and delivered to the purchaser a
single temporary Bond of each series in the total principal amount
of the Bonds. The temporary Bonds shall bear the same date of
issuance, interest rates, principal payment dates and terms and
covenants as the definitive Bonds, shall be issued as a fully
registered Bonds in the name of the purchaser, and otherwise shall
be in a form acceptable to the purchaser. The temporary Bonds
shall be exchanged for definitive Bonds as soon as they are
printed, executed and available for delivery.
SECTION XXII. Effective Date of Ordinance. This ordinance
shall be effective upon its passage, approval and five days after
publication "
PASSED by the City Council this 23rd of August, 1993.
Marily Petersen, City Clerk
APPROVED BY THE MAYOR th 23rd day of August 1993.
,..
.�
E 1 Clymer, Mayor �I
Approved as to Form: 'I
rti'$► i
Date of Publication: Auqust 27, 1993
ao9sase.az
-22-