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HomeMy WebLinkAboutORD 4200 �• ' ' • ' . Amended by ORD 4�4417 CITY OF RENTON, WASHINGTON ORDINANCE NO. 4200 AN ORDINANCE of the City of Renton, Washington, relating to contracting indebtedness; providing for the issuance, specifyinq the maturities , interest rates , terms and covenants of $5 , 500, 000 par value of Unlimited Tax General Obligation Bonds , 1989 , author- ized by the qualified voters of the City at a special election held therein pursuant to Ordinance No . 4173 ; establishing a bond redemption fund and a construc- tion fund; ratifying and confirming the public sale of those bonds; and accepting the bid of Merrill Lynch Capital Markets of Los Angeles , California, for the purchase of those bonds . WHEREAS, pursuant to Ordinance No . 4173 passed and approved September 12 , 1988 , the qualified voters of the City of Renton, Washington (the "City" ) , at a special election held on November 8 , 1988 , in conjunction with the State general election held on the same date, authorized the issuance of $5, 500, 000 unlimited tax qeneral obligation bonds for the purpose of paying part of the cost of constructing, developing, rehabilitating, acquiring and equipping low-income housing and related facili- ties in the City in cooperation with the Renton Housing Authority; and WHEREAS, the City caused notice af sale of bonds to be published in the Daily Journal of Commerce, in Seattle, Washington, and specified in that notice of sale that bids would be received by the City Clerk until 11 : 00 a .m. on February 6 , 1989 , in her office in the City Hall and six bids were received; anc� } � ORDINANCE N0. 4200 WHEREAS, the City Council has determined that Merrill Lynch Capital Markets of Los Angeles , California, submitted the lowest bid based on the true interest cost; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO ORDAIN as follows : SECTION I . Findings . The City Council finds that there exists a critical shortage of housing in the City for low-income elderly persons , that the Renton Housinq Authority is unable to provide sufficient funds to provide that needed housing, and that other existing sources of funds for capital expenditures , including federal grants, and housing assistance programs are insufficient to meet fully the existing and projected need for that housing . The City Council further finds that it is in the best interests of the City to aid and cooperate with the Renton Housing Authority in the planning, undertaking , development, acquisition, rehabilitation, construction and equipping of hous- ing, together with related facilities , for low-income elderly persons and to administer the proceeds of the $5 , 500 , 000 par value of negotiable general obligation bonds authorized by the qualified voters of the City at a special election held on November 8 , 1988 , pursuant to City Ordinance No . 4173 in accord- ance with the agreement entered into for that purpose between the City and the Renton Housing Authority entitled Housing Cooperation Agreement and dated January 24 , 1989 . - 2 - ORDINANCE NO. 4200 SECTION II . Approval of Agreement . The Housing Coopera- tion Agreement dated January 24 , 1989 , between the City and the Renton Housinq Authority is approved. SECTION III . Acceptance of Bid and Authorization of Bonds Pursuant to Election. The City accepts the bid of and shall issue and sell to Merrill Lynch Capital Markets of Los Angeles , California, under the terms and conditions herein set forth, the total $5, 500 , 000 par value of negotiable general obligation bonds authorized by the qualified voters of the City at a special election held on November 8 , 1988 , in conjunction with the State general election held on the same date, for the pur- pose of paying part of the cost of constructing , developing, rehabilitating, acquiring and equipping low-income elderly housing and related facilities in the City in cooperation with the Renton Housing Authority. SECTION IV. Description of Bonds . The bonds shall be called Unlimited Tax General Obligation Bonds , 1989 , of the City (the "Bonds" ) ; shall be in the aggregate total principal amount of $5 , 500 , 000 ; shall be dated February 1, 1989 ; 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 (collec- tively, the fiscal aqencies of the State of Washington located in Seattle, Washington, and New York, New York) deems necessary - 3 - ORDINANCE NO. 4200 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) , payable on February l, 1990, and semi- annually thereafter on each succeeding August 1 and February l; and shall mature on February 1 in years and amounts as follows : Maturity Interest Years Amounts Rates 1991 $145 , 000 6 . 10% 1992 155 , 000 6 . 20 1993 165 , 000 6 . 30 1994 175 , 000 6 . 40 1995 190 , 000 6 . 50 1996 200 , 000 6 . 50 1997 215 , 000 6 . 60 1998 230, 000 6 . 60 1999 250 , 000 6 . 70 2000 265 , 000 6 . 75 2001 285 , 000 6 . 80 2002 305 , 000 6 . 80 2003 330 , 000 6 . 90 2004 355 , 000 6 . 90 2005 385 , 000 7 . 00 2006 410 , 000 7 . 00 2007 445 , 000 7 . 10 2008 480 , 000 7 . 10 2009 515 , 000 7 . 20 The life of the capital facilities to be acquired with the pro- ceeds of the Bonds exceeds 20 years . SECTION V. Reqistration 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 con- tain the name and mailing address of the owner of each Bond and - 4 - ORDINANCE N0. 4200 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 in any authorized denomination of an equal aqgregate principal amount and oF the same 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 Reqistrar shall not be obligated to exchange or transfer any Bond during the fifteen days preceding any principal payment or redemption date. SECTION VI . 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 drafts mailed on the interest payment date to the registered owners at the addresses appearing on the Bond Reqis- ter on the fifteenth day of the month preceding the interest payment date. Principal of the Bonds shall be payable upon 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 VII . Optional Redemption and Open Market Purchase of Bonds . Bonds maturinq in the years 1991 throuqh 1999 , inclusive, shall be issued without the right or option of the - 5 - ORDINANCE N0. 4200 City to redeem those Bonds prior to their stated maturity dates . The City reserves the right and option to redeem the Bonds maturing on or after February l, 2000, prior to their stated maturity dates , as a whole, or in part within one or more maturities selected by the City (and by lot within a maturity in such manner as the Bond Registrar shall determine) , on February l, 1999 , or on any interest payment date thereafter, at par plus accrued interest to the date fixed for redemption. Portions of the principal amount of any Bond, in install- ments of $5 , 000 or any integral multiple thereof , may be redeemed. If less than all of the principal amount of any Bond is redeemed, upon surrender of that Bond at either of the prin- cipal offices of the Bond Registrar, there shall be issued to the registered owner, without charge therefor, a new Bond (or Bonds at the option of the registered owner) of the same matur- ity and interest rate in any of the denominations authorized by this ordinance in the aggregate total principal amount remaining unredeemed. The City further 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. - 6 - ORDINANCE N0. 4200 SECTION VIII . Notice of Redemption. The City shall cause notice of any intended redemption of 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 reqis- tered owner of any 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 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 Standard & Poor ' s Corporation at their offices in New York, New York, or their successors , to Merrill Lynch Capital Markets at its principal office in Los Angeles , California, or its suc- cessor , and to such other person and with such additional infor- mation as the City Finance Director shall determine, but these additional mailings shall not be a condition precedent to the redemption of Bonds . SECTION IX. 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 - 7 - ORDINANCE NO. 4200 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 qiving notice of that call to the reqistered owner of each of those unpaid Bonds . SECTION X. 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 XI . Form and Execution of Bonds . The Bonds shall be printed or lithographed on good bond paper in a form consis- tent 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 or a facsimile reproduction thereof shall be impressed or printed thereon. Only Bonds bearing a Certificate of Authentication in the following form, manually signed by the Bond Registrar , shall be - 8 - ORDINANCE NO. 4200 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 Bonds , 1989 , described in the Bond Ordinance . WASHINGTON STATE FISCAL AGENCY 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 to the benefits of this ordinance. If any officer whose facsimile siqnature 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 deliv- ered, shall be as bindinq on the City as though that person had continued to be an officer of the City authorized to siqn bonds . Any Bond also may be signed on behalf of the City by any person who , on the actual date of signinq of the Bond, is an officer of the City authorized to sign bonds , although he or she - 9 - ORDINANCE N0. 4200 did not hold the required office on the date of issuance of the Bonds . SECTION XII . 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 at all times be open to inspection by the City. 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 representa- tions contained in the Bond Registrar ' s Certificate of Authenti- cation 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 depos- itory for and perrnit any of its officers or directors to act as members of , or in any other capacity with respect to, any com- mittee formed to protect the rights of Bond owners . SECTION XIII . Preservation of Tax Exemption for Interest on Bonds . The City covenants that it will take all actions necessary to prevent interest on the Bonds from beinq included - 10 - ORDINANCE N0. 4200 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 Bonds or other funds of the City treated as proceeds of the Bonds at any time during the term of the Bonds which will cause interest on the Bonds to be included in gross income for federal income tax purposes . The City also covenants that , if all gross proceeds of the Bonds have not been spent within six months after the date of issuance of the Bonds , it will calcu- late, or cause to be calculated, and rebate to the United States all earnings from the investment of gross proceeds of the Bonds that are in excess of the amount that would have been earned had the yield on those investments been equal to the yield on the Bonds , plus all income derived from those excess earnings , to the extent and in the manner required by Section 148 of the United States Internal Revenue Code of 1986 , as amended (the "Code" ) , and applicable regulations . If the City fails to meet rebate requirements applicable to the Bonds under Section 148 of the Code, the City covenants that , to the extent permitted by that Section, it will pay the penalty provided in Subsection 148(f) (7) (C) if required to prevent interest on the Bonds from being included in gross income for federal income tax purposes . The City certifies that it has not been notified of any listinq or proposed listing by the Internal Revenue Service to the - 11 - ORDINANCE NO. 4200 effect that it is a bond issuer whose arbitraqe certifications may not be relied upon. SECTION XIV. Bonds Negotiable. The Bonds shall be nego- tiable instruments to the extent provided by RCW 62A. 8-102 and 62A. 8-105 . SECTION XV. 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 plan, and to redeem and retire, 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, 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 - 12 - ORDINANCE N0. 4200 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 XVI . Funds ; Deposit of Bond Proceeds . There is created and established in the office of the City Finance Direc- tor a special fund designated as the Unlimited Tax General Obli- gation Bond Fund, 1989 (the "Bond Fund" ) to be used for the purpose of paying principal of and interest on the Bonds . Accrued interest on the Bonds , if any, received from the sale and delivery of the Bonds shall be paid into the Bond Fund. There also is created and established in the office of the City Finance Director a special fund designated as the 1989 Senior Housing Construction Fund (the "Construction Fund" ) . The prin- cipal proceeds received from the sale and delivery of the Bonds shall be paid into the Construction Fund and used for the pur- poses specified in Section III of this ordinance . Until needed to pay the costs of the Project and costs of issuance of the Bonds , the City may invest principal proceeds temporarily in any legal investment , and the investment earnings may be retained in the Construction Fund and spent for the purposes of that fund except that earnings subject to a federal tax or rebate - 13 - � . . . , ORDINANCE N0. 4200 requirement may be withdrawn from the Construction Fund and used for those tax or rebate purposes . 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 XVII . Ratification of Public Sale of Bonds and Notice of Sale. The City Council approves and confirms the Notice of Sale of the Bonds published in the "Daily Journal of Commerce" of Seattle, Washington, and the Notice of Sale of the Bonds as published in the Preliminary Official Statement and published in connection with the Bonds by Seattle-Northwest Securities Corporation, the City' s financial consultant . SECTION XVIII . Printing and Delivery of Bonds . The offi- cers of the City are directed to have the Bonds printed and authenticated immediately. The Bonds shall be delivered to the purchaser pursuant to its bid upon payment therefor at the price bid, plus accrued interest from the date of the Bonds to their date of delivery. In connection therewith, a certified copy of the transcript of proceedings pertaining to the issuance of the Bonds shall be furnished to Foster Pepper & Shefelman so that their approving legal opinion may be obtained for delivery to the purchaser in compliance with the requirements of the Notice of Bond Sale and of the bid. Bond counsel shall not be required to review and shall express no opinion concerning the completeness or accuracy of - 14 - � • - • - ORDINANCE N0. 4200 any offical statement , offering circular or other sales material issued or used in connection with the Bonds , and bond counsel ' s opinion shall so state. SECTION XIX. Temporary Bond. Pending the printing, execu- tion and delivery to the purchaser of definitive Bonds , the City may cause to be executed and delivered to the purchaser a single temporary Bond in the total principal amount of the Bonds . The temporary Bond 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 Bond in the name of the purchaser, and otherwise shall be in a form acceptable to the purchaser . The temporary Bond shall be exchanged for definitive Bonds as soon as they are printed, authenticated and available for delivery. SECTION XX. Ratification and Confirmation. All actions heretofore taken by the City or on its behalf , including the publication by the City Clerk of the Notice of Sale of the Bonds and the return of the good faith deposits to the unsuccessful bidders , consistent with the provisions of this ordinance are ratified and confirmed. - 15 - a • . . ORDINANCE NO. 4200 SECTION XXI . Effective Date of Ordinance. This ordinance shall be effective upon its passage, approval and five days after publication. PASSED by the City Council this 6th day of February, 1989 . � ��'a-7��� Maxine E . Motor, City Clerk APPROVED BY THE MAYOR this 6th day of February, 1989 . �-�`- �`�, �., � ti.�, � � { , t"t +.\n,'v', .- �t Earl Clymer`, May ��� Approved as to Form: � �� Date of Publication: February 10, 1989 2 3 9 2 r - 16 -