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HomeMy WebLinkAboutORD 4237 f y � i c } . J . .. . , Amends Ord #4231 CITY OF RENTON, WASHINGTON ORDINANCE NO. 4237 AN ORDINANCE relating to Local Improvement District No . 314 and amending Ordinance No . 4231 . THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO ORDAIN, as follows : SECTION I . Amendatory Section. Section IX of Ordinance No . 4231 is amended to read as follows : SECTION IX. Refundinq of the LID 314 Bonds . (a) Acquisition and Substitution of Acquired Obliqations . The proceeds of the issuance and sale of the Bonds , except any accrued interest received which shall be deposited in the Bond Fund, together with any premium and money transferred from the Bond Fund shall be deposited immediately upon the receipt thereof with Puget Sound National Bank (the "Refunding Trustee" ) to discharge the obligations of the City relating to the outstanding LID 314 Bonds under Ordinance No . 3838 by providing for the payment of the amounts required to be paid by the Refunding Plan. To the extent practicable and after the payment and redemption of the Term Bonds , such obligations shall be discharged fully by the Refunding Trustee' s simultaneous purchase of Acquired Obligations bearing such interest and maturing as to principal and interest in such amounts and at ORDINANCE N0 . 4237 such times so as to provide for the payment of the amounts required to be paid by the Refunding Plan with respect to the Serial Bonds . The Acquired Obligations are listed and more particularly described in Schedule A attached to the Refunding Trust Agreement but are subject to substitution as set forth below. The City shall deposit with the Refunding Trustee on September 1 , 1989, cash, together with a portion of the proceeds of the Bonds , sufficient in an amount to pay and redeem the Term Bonds or , if necessary, to defease the Term Bonds until September 1 , 1990 . If , for reasons which the City determines would be sufficient to cause certain Term Bonds to be considered to remain outstanding, not all of the Term Bonds called for redemption on September 1 , 1989, are presented for payment by September 14 , 1989 , or by such later date as would permit the City, under applicable federal regulations, to acquire by September 29 , 1989 , United States Treasury Certificates of Indebtedness -- State and Local Government Series (SLGS) sufficient to defease the Term Bonds remaining outstanding after such date, the City shall defease those remaining outstanding Term Bonds by using all or a portion of the cash deposited with the Refunding Trustee for the purchase of and deposit with the Refunding Trustee of SLGS, the payment of principal of and interest on which is sufficient to call , pay and redeem those remaining outstanding Term Bonds on September 1 , 1990 . - 2 - ORDINANCE N0. 4237 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 Bonds will remain excluded from gross income for federal income tax purposes under Sections 103 , 148 and 149 (d) of the Internal Revenue Code of 1986, as amended (the "Code" ) , and (b) such substitution shall not impair the timely payment of the amounts required to be paid by the Refunding Plan as 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 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 independent nationally recognized firm of certified public accountants acceptable to the Refunding Trustee confirming that the payments of principal of and interest on the - 3 - ORDINANCE N0. 4237 substitute Acquired Obligations, if paid when due, and any other money held by the Refunding Trustee will be sufficient to carry out the Refunding 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 Bonds or the LID 314 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 Bond Fund. (b) Administration of Refundinq 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. Al1 Acquired Obligations (or substitute obligations) and the money deposited with the Refunding Trustee and any income therefrom shall be held irrevocably, invested and applied in accordance with the provisions of Ordinance No . 3838 , this ordinance, Chapter 39 . 53 RCW and other applicable statutes of the State of Washington, - 4 - ORDINANCE N0 . 4237 and the Refunding Trust Aqreement . All necessary and proper fees , compensation and expenses of the Refunding Trustee for the Bonds and all other costs incidental to the redemption of the Term Bonds and the setting up of the escrow to accomplish the refunding of the outstanding Serial Bonds and costs related to the issuance and delivery of the Bonds, including bond printing, verification fees, bond counsel ' s fees and other related expenses , shall be paid out of the proceeds of the Bonds . To the extent that Bond proceeds and the Bond Fund contribution are insufficient, after the purchase of the Acquired Obligations and the payment and retirement of the Term Bonds, to pay the costs of issuance, including underwriter ' s discount (which may be deducted from the proceeds of the Bonds paid to the City) , the General Fund of the City shall advance sufficient money to pay those costs of issuance, which advance will be reimbursed from the first assessment collections paid into the Bond Fund after the date of delivery of the Bonds . Any money remaining after the payment of the costs of issuance of the Bonds shall be returned to the City and deposited in the Bond Fund. (c) Authorization for Refundinq Trust Aqreement . In order to carry out the Refunding Plan provided for by this ordinance, the Mayor 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 - 5 - ORDINANCE N0. 4237 responsibilities of the Refunding Trustee in connection with the payment, redemption and retirement of the outstanding LID 314 Bonds as provided herein and stating that the provisions for payment of the fees, compensation and expenses of such Refunding Trustee set forth therein are satisfactory to it . Prior to executing the Refunding Trust Agreement , the Mayor is authorized to make such changes therein which do not change the substance and purpose thereof or which assure that the escrow 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 . SECTION II . Section XV of Ordinance No. 4231 is amended to read as follows : "SECTION XV. Approval of Bond Purchase Contract . Seattle-Northwest Securities Corporation of Seattle, Washington, has presented a bond purchase contract (the "Bond Purchase Contract" ) to the City offering to purchase the Bonds at a price of par plus a premium of $49 ,474 . 75 and 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 City officials . - 6 - ORDINANCE N0. 4237 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, Washinqton, 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 for the prompt delivery of the Bonds to the purchaser, including without limitation the execution of the Official Statement on behalf of the City, and for the proper application and use of the proceeds of the sale thereof . " SECTION III . Ratification. Al1 actions heretofore taken by the City Council consistent with the provisions of this ordinance are ratified and confirmed. PASSED by the City Council this 28th day of August, 1989 . ���� Marilyn � . C�etersen, Deputy City Clerk APPROVED BY THE MAYOR is 28th day of August, 1989 . `, � w '�n n Q n Ear'r"� ymer, Mayor �� " `�- - 7 - , � , ORDINANCE N0. 4237 Approved as to Form: G�j����l� /✓. Date of Publication: September 1, 1989 2561r - 8 -