Loading...
HomeMy WebLinkAboutORD 2778 < < , . , ' � ':�,. • . • ,: . CITY OF RENTON, WASHINGTON ORDINANCE N0. 2778 AN ORDINANCE providing for the a.ssuance of $565,000.00 par value of "Airport Revenue Bonds, 1973" for the purpose of obtaining part of the funds with which to pay the cost of carrying out the Phase II Development � Project for the Renton Municipal Airport as adopted by the Renton Aviation Board; fixing the form, date, matur�ties, a.nterest rates, covenants and terms of those bonds; creating � an airport revenue fund, an airport construc- tion fund, and a bond redemption fund; and providing for the sale of those bonds to Seattle-Northwest Securities Corporation of Seattle, Washington. WHEREAS, the City of Renton, Washington, owns and I operates the Renton Municipal Airport located in the City of Renton, Washington; and WHEREAS, pursuant to Ordinance No. 1261, passed October 1, 1946, as amended by Ordinance No. 1271, passed on February 4 , 1947 , the Renton City Council duly created the Renton Aviation Board and pursuant to Section 8 , subdivision 2 , chapter 182 , Laws of 1945, vested the authority for the construction, enlarqe-� ment, improvement, maintenance, equipment, operation and regulation . of such airport in the Renton Aviation Board; and WHEREAS, pursuant to such authority, the Renton Aviatian Board has authorized the carrying out the Phase II Development Project for the Renton Municipal Airport, the estimated cost of which is $1,440 ,000. 00 , and the Renton City Council has approved and supported the actian �Caken by the Renton Aviation Board; and WHEREAS, it is now necessary to authorize the issuance I of Airport Revenue Bonds to pay a part of the cost of carrying out the Phase II Development Project for the Renton Municipal Airport; NOW, THEREFORE, I � , ,� , � b THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO ORDAIN, as follows : Section l. For the purpose of obtaining a part of the funds necessary to carry out the Pha�e II Development Project for the Renton Municipal Airport adopted by the Rentor. Aviation Board, which project includes the construction and improvement of the main entrance to the airport, a perimeter road of approxi- mately 2-3/4 miles, the construction and installation of runway and taxiraay lighting, the construction and installation of air- craft approach aids , the construction and improvement of taxiways, the acquisition, construction and improvement of the airport beacon, and the acquisition, construction and improvement of perimeter fencing and landscaping, and for the purpose of paying the costs incident to the issuance of the bonds authorized by this Ordinance, the total estimated cost of which is $1 ,440 ,000. 00, there shall be issued and sold $565,000. 00 par value of "Airport Revenue Bonds, 1973" (hereinafter called the "Bonds") . The Bonds shall be in denominations of $5 ,000. 00 each, shall be numbered from 1 to 113, inclusive, shall be dated April l, 1973, shall bear interest at the ra�.es set forth below, payable on October 1, 1973 , and semianr.ually on April 1 and October i of each year thereafter, interest to maturity ta be evidenced by coupons to be attached to the Bonds, with full obligation on the part of the City to pay interest at the same rates from and after the bond maturity dates until �khe Band.s with interest are paid in full. Both principal of and interest on the Bonds shall be payable in lawful money of the United States of America at the office of the ' Treasurer of Renton, Washington, solely out of the "Airport Revenue Bond Fund, 1973" (hereinafter called the "Bond Fund") , created and established by this ordinance. The Bonds shall be numbered, mature serially, and bear interest in accordance with the following schedule: I -2- � � :� • . Bond Numbers Interest (Inclusive) Amounts Rates Maturities 1 to 4 $20,000 6 . 00% April l, 1976 . 5 to 8 20,000 6 . 00� April 1, 1977 9 to 12 20 ,000 6 . 00� April 1, 1978 13 to 16 20 ,000 6 . 00$ April 1 , 1979 17 to 21 25 ,040 6 . 00� April 1, 1980 22 to 26 25,000 6 .00� April 1, 1981 27 to 31 25 ,000 6 . 00� April l, 1982 32 to 36 25 ,000 6. 00a April 1, 1983 37 to 42 30 ,000 6 . 00� April l , 1984 43 to 48 30 ,000 6 .10� April 1, 1985 49 to 55 35,000 6 .10% April l, 1986 56 to 62 35 ,000 6 .10o April 1, 1987 63 to 69 35 ,000 6 . 20� April 1 , 1988 70 to 77 40 ,000 6 .20� April 1, 1989 78 to 85 40 ,000 6 .20� April 1, 1990 86 to 94 45 ,000 6 .25o April l, 1991 95 to 103 45 ,000 6.25� April l, 1992 104 to 113 50 ,000 6 .25� April 1, 1993 Section 2. Bonds numbered 1 to 36 , inclusive, maturing April 1, 1976 throuqh Apri? l , 1983 , inclusive, may not be redeemed prior to their respective maturity dates. The City reserves the right to redeem Bonds numbered 37 to 113 , inclusive, as a whole or in part, in inverse numerical order, on any interest payment dates at the following times and prices , expressed as a percentage of par: Call_ Date Call Price On April 1, 1983, through October 1 , 1983 103� On April 1 , 1984 , through October l, 1984 102� On April 1 , 1985 , through October 1 , 1985 101� On April 1, 1986 , and thereafter 100°s (par) Notice of any call for the redemption of any of the Bonds prior to their respective maturity dates shall be published once in the official newspaper of the City not less than thirty nor more than forty-five days prior to the interest coupon due date on which the Bonds would be redeemed. Notice of such call for re�emption shall also be mailed to Seattle-Northwest Securities Corporation at its principal place of business in Seattle, Washington, or its successor, not less than thirty nor more than forty-five days prior to the interest coupon due date upon which the Bonds would be redeemed. In addition, such -3- . f � redemption notices shall also be sent to Moody' s Investors '', Service, Inc. , and Standard & Poor' s Corporation, at their offices ' , in New York, New York. Interest on any Bonds so called for redemption shall cease on such interest coupon due date upon pay- ment of the call price into the Bond Fund. The City reserves the right to purchase any of the out- standing Bonds on the open market at a price not in excess of the above call prices. Section 3 . There is hereby created the City of Renton ".Airport Revenue Fund" into which fund shall be deposited all gross revenues of the Rentvn Municipal Airport of any kind or nature derived from the City' s ownership, control, use and opera- tion �of the airport and all airport facilities and structures thereon and used and operated in connection therewith, including, but not �eing limited to, fees charged for all uses of the airport and facilities, rentals derived from leases of part or all of the airport, buildings, and any or all air navigation facilities thereon, fees derived from concessions granted, proceeds from the sale of fuel or other services of the airport, and interest earn- ings on the investment of any monies in that fund. Monies in the Airport Revenue Fund sha11 be paid out for the following purposes in the following priority: 1. Normal maintenance and operating expenses. 2 . Into the Bond Fund for current debt service ' requirements. 3. Into the Bond Fund for required reserve account deposits. 4 . Extraordinary repairs of the Renton Municipal Airport facilities. I 5. Expansion or extension of the Renton Municipal Airport facilities, the advance retirement of bonds payable from the Bond Fund, or debt service and reserve requirements on junior lien airport revenue bonds. Section 4. The Bond Fund heretofore denominated as the "Airport Revenue Bond Fund, 1973 , " is hereby created and estab- lished, and is divided into two accounts, namely, a "Principal and Interest Account" and a "Reserve Account. " So long a� any -4- � . of the Bonds remain outstanding against the Bond Fund, the City Treasurer shall set aside and pay into the Bond Fund out of the Airport Revenue Fund a fixed amount without regard to any fixed proportion on or before the 20th day of each month, as follows: ' (a) Into the Principal and Interest Account begin- ning with the month of April, 1973, one-siXth of the amount of interest to become due and payable on the Bonds on the next interest pay- I ment date upon which shall be credited the � accrued interest received from the sale of the � Bonds to be deposited into that account, and, beginning with the month of April , 1975, one- twelfth of the amount of the principal to become due and payable on the Bonds on the next principal payment date. (b) Into the Reserve Account such amount so that within five years there will be established and maintained within that account an amount equal to the maximum annual debt service on the Bonds exclusive of the principal amount of any term bonds. The Reserve Account may be accumulated from any other monies which the City may have available for such purpose in addition to monies within the Airport Revenue Fund. The City agrees that when the required amounts have been paid into the Reserve Account, it will at all times except for withdrawals therefrom as authorized in this ordinance maintain those amounts therein until there is a sufficient amount in the Bond Fund including the Reserve Account therein to pay the principal of and interest on all bonds payable from the Bond Fund to final maturity thereof, at which time the money in the Bond Fund including the Reserve Account therein may be used to pay such principal and interest, except that when _monies in the Reserve Account exceed the reserve requirements , such excess monies may be transferred to the Principal and Interest Account. In the ev�nt that there shall be a deficiency in the Principal and Interest Account to meet the maturing installments of either principal or interest, as the case may be, on the Bonds, such deficiency shall be made up from the Reserve Account by the withdrawal of monies therefrom for that purpose. Any deficiency cr�ated in the Reserve Account by reason of any such withdrawal -5- I shall then be made up from monies deposited in the Airport Revenue Fund first available after making the necessary provi- sion for the prior requirements of the Airport Revenue Fund. All money in the Reserve Account above provided for may be kept on deposit in the official bank depositvey of the City, or may be invested in direct obligations of the United States Government having a guaranteed redemption price prior to maturity, or maturing at a date no later than the last maturity of the Bonds outstanding at the time of such investment. Interest earned on any such investment or on such bank deposit shall be deposited in and become a part of the Reserve Account until the total ; required reserve amount shall have been accumulated therein, after which such interest shall be deposited in the Principal and Interest Account. 5ection 5. The gross revenues of the Renton Municipal Airport are hereby pledged to the payments provided in this ordinance, and such Bonds shall constitute a charge or lien upon such revenues prior and superior to any other charges whatsoever excluding charges for maintenance and operation of the Renton Municipal Airport, except the charge or lien upon such gross revenuesfor the Bonds shall be on a parity with ��e charge or lien upon the gross revenues for any additionsl and/or refunding r•evenue bonds which may be hereafter issued on a parity with the Bonds in accordance with the provisions of Section 9 hereof. Section 6 . The City of Renton, for itself and for the Renton Aviation Board, hereby covenants and agrees with the ' owner and holder of each Bond at any time outstanding, as follows: (a) It will establish, maintain and collect such lease rental rates and charges that, together with other airport revenues , will provide net revenue (that is, gross revenue less normal maintenance and operating expenses) annually at least equal to 1.50 times that respective calendar year' s annual debt service, both principal and interest on the Bonds. -6- � . . (b) It will review at least annually the specific � lease rental contracts to assure properly that sufficient net revenues will be generated to pay promptly all scheduled debt service, both princi- pal and interest, when required. If it becomes apparent at any time that projected net revenues will not be suffi�ient to meet all required debt service payments and the coverage requirements of the Bonds, the City will, at the earliest possible time, cause tn be increased the specific lease rental payments so that net revenues will be so sufficient. (c) It will take all actions necessary to enforce the terms of the lease agreements producing rental for the Airport Revenue Fund, and will not cons�nt to any am.endments to such agreement which will ad- versely affect the rights of the holders of the Bonds. (d) It will at a11 times maintain and keep the Renton � Municipal Airport facilities in good repair, work- ing order and condition, and also will at all times operate such facilities and the business in con- nection therewith in an efficient manner and at a reasonable cost. (e) It will not sell or otherwise dispose of or encum- ber all of the property of the Renton Munici�al Airport and its facilities unless provision is made for payment into the Bond Fund af a sum sufficient to pay the principal of and interest on all of the then outstandi�g bonds payable out of the Bond Fund in accordance with the terms thereof; and further, it will not sell or otherwise dispose of or encum- ber any part of the Renton Municipal Airport or its facilities used, useful or material to the operation of that airport unless provision is made for the replacement thereof or for payment into the Bond Fund of an amount which shall bear the same ratio to the amount of the outstanding bonds payable out of _ the Bond Fund as the revenue available for debt ser- vice for those bonds for the twelve months preceding such sale, disposal or encumbrance from the portion of the airport or its facilities so sold, disposed of or encumbered bears to the revenue available for debt service for those bonds from the . entire airport for the same period. Any monies so paid into the Bond Fund shall be used to retire outstanding bonds at the earliest possible date. (f) It will carry the type and amount of insurance on its municipal airport facilities and properties normally carried by private companies engaged in the operation of similar airports. (g) It will not furnish service to any user free of charge. (h) It will promptly take �uch legal action as may be feasible to enforce the collection of all delinquent accounts. (i) It will cause proper books, records and account� of operation of the Renton Municipal Airport and will cause to be prepared an annual financial and opera- ting statement. (j ) It will promptly pay all costs of maintenance and operation of the Renton Municipal Airport and other- wise meet th� obligations of the City and the Renton Aviation Board as herein set forth. -7- I i � � 5ection ?. The Bonds shall be in substaritially the follawing form: No. $5 , 000. 00 UNITED STATES OF AMERIGA STATE OF WASHINGT4N CITY OF RENTON AIRPORT REVENUE BOND, I973 6. 38 � KNOW ALL MEN BY THESE PRESENTS: That the City of Renton, Washington, tor value received hereby ' promises to pay ta bearer on the FIRST DAY OF APRIL, 19 , the principal sum of FIVE THOUSAND DOLLARS tagether with interest therean at the rate of PERCENT ( $) per annum, payable an October l , 1973 , and semi- annually on the 1st day� of April and October each year thereaf�er upon the presentation and surrender of the attached interest coupons as they severally mature up to the bond maturity date with full ob2igation on the part of the City to pay interest at the �arne rate from and af�er the bond maturity date until this bond, both principal and interest, is paid in full. Both principal and interest are payable in lawful money o� the United 5tates of America at the office of the City Treas- urer of Renton, Washington, solely out o� the , speca.al fund created by Ordinance No. �, , and knawn as the "Airpart Revenue Bond Fun , 1 7 " (hereinafter called the "Bond Fund") , into which fund the City o� Renton hereby irrevocably binds itself to pay certain fixed amounts out af the gross revenues of the Renton Municipal Airport now belonging or which may hereafter belong to the City, including aIl expansion or extension of the airport faci3ities now or at any tizne hereafter made or constructed, without regard to any fixed propartion, namely, amounts sufficient to pay the principal of and interest on the bonds as th�y respectively become due and tb create a re�erve, a11. at the times and in the manner set forth in t3rdinance No. �����. The gross revenues of the Rentan Municipal Air- port are hereby ��.edged to such payments, and the bonds shall �onstitute a �cha�ge or lien upon such revenues prior and superic�r to any other charges whatsoever e�cluding charges for maintenance and operation of the Rentan Municipal Airport, except � �he charge or lien upan such gross revenue for the � band� sha11 be on a parzty with the charge or lien upon the gross revenues far any addit�ianal and/or re�unding revenue bonds which may be hereafter issued on a parity with the bonds in accordance with the provisions of �ection 9 of Ordinance No. � �" r G'�' ...Q,._ _$� This bond is one of a total authorized issue of $565 ,000. 00 of bonds , all of like date, tenor and effect, except as to maturities and interest rates, all payable from the Bond I Fund of the City of Renton, and all issued by the City under and pursuant to the laws of the State of Washington and ordinances of the City of Renton for the purpose of providing part of the funds with which to pay the cost of carrying out the Phase II Development Project for the Renton Municipal Airport, all as set forth in Ordinance No. �77$ . Reference is made to that ordinance as more fully describing the covenants with and rights of holders of bonds of this issue. Bonds numbered 1 to 36 , inclusive, maturing April 1, 1976 , to April 1 , 1983 , inclusive, are - issued without the right or option of the City to redeem the same prior to their stated maturity dates. The City of Renton reserves the right to redeem bonds numbered 37 to 113 , inclusive , maturing April 1, 1984 , to April 1, 1993 , inclusive, as a whole or in part, in inverse numerical order, can any interest payment dates at the following times and prices, expressed as a percentage of par: Call Date Price On April 1, 1983 , through October l, 1983 103� On April l, 1984 , through October 1, 1984 102� On April 1 , 1985 , through October 1, 1985 101� On April l, 1986 , and thereafter 100� (Par) Notice of any call for the redemption of any of the bonds prior to their respective maturity dates shall be published once in the official newspaper of the City not less than thirty nor more than forty-five days prior to the interest coupon due date on which the bonds would be redeemed. Notice of such call for redemption shall also be mailed to Seattle-Northwest Securities Corporation at its principal place of business in Seattle , Wasliington, or its successor, not less than thirty nor more than forty-five days prior to the interest coupon due date upon which the bonds would be r�deemed. In addition, such redemption notices shall also be sent to Moody' s Investors Service, Inc. , and Standard & Poor' s Gorporation, at their offices in New York, New York. Interest on any bonds so called for redemption shaZl cease on such interest coupon due date upon payment af the call price into the Bond Fund. The City of Renton reserves the right to purchase any of the outstanding bonds on the open. market at a price not in excess of the above call prices. The City of Renton hereby covenants and agrees to establish, maintain and collect such lease rental rates and charges that, together with other airport revenues, will provide net revenue -9- ' � . annually at least equal to 1.50 times that respective calendar year ' s annual debt service, both principal and interest, on the bonds, and to promptly pay all costs of maintenance and operation of the Renton Municipal Airport and otherwise meet the obligations of the City and the Renton Aviation Board as set forth herein and in Ordinance No. ,�'y7� . It is hereby certified and declared that the bonds are issued pursuant to and in strict compli- ance with the constitution and laws of the State of Washington and the ordinances of the City of Renton, and that all acts, conditions and things required to be done precedent to and in the issu- ance of this bond have happened, have been done and have been performed as required by law. � IN WITNESS WHEREOF, the City of Renton, Wash- , ington, has caused this bond to be signed by the facsimile signature of its Mayor and attested by the manual signature of its City Clerk and its corporate seal to be hereto affixed, and the _ interest coupons attached to be signed with the facsimile signatures of those officials this first day of April, 1973 . CITY OF RENTON, WASHINGTON By (facsimile signature) Mayor ATTEST: City Clerk The interest coupons attached to the Bonds shall be in substantially the following form: Coupon No. $ On the FIRST DAY OF (APRIL) (OCTOBER) , 19 , the CITY OF RENTON, WASHINGTON, upon presentation and surrender of this coupon, will pay to bearer at the office of the City Treasurer the amount sho��n hereon in lawful money of the United States of America out of the special fund of the City known as the "Airport Revenue Bond Fund, 1973 ," tY�at sum being six months' interest then due on its "Airport Revenue Bond, 1973 , " dated April l, 1973, and numbered . CITY OF RENTON, WASHINGTON By (facsimile signature) Mayor ATTEST: (facsimile siqnature) City Clerk -10- Section 8 . The bonds shall be printed on lithographed forms, shall be signed by the facsimile signature of the Mayor and attested by the manual signature of the City Clerk, and shall have the seal of the City affixed thereto, and the coupons shall bear the facsimile signatures of the Mayor and the City Clerk. I, Section 9. The City covenants and agrees that it will ' not issue any bonds or obligations which will constitute a charge or lien against the gross revenues of the Renton Municipal Airport prior to or on a parity with the charge or lien against such gross revenues for the payments required to be made into the Bond Fund for the Bonds except that the City reserves the right to issue additional and/or refunding airport revenue bonds which will constitute a charge or lien upon the gross revenues of the Renton Municipal Airport on a parity of lien with the Bonds if the following conditions shall be met and complied with at the time of the issuance of such additional and/or refunding bonds: (a) There is no deficiency in the Bond Fund or the Reserve Account therein for any bonds then outstanding against the Bond Fund. (b) The City will covenant and agree that within five years from the date of issuance of those parity bonds it will increase the Reserve • Account over the amount required to be deposited therein for the bonds then outstanding against the Bond Fund to an amount in addition equal to the maximum annual debt service on the parity bonds to be issued excluding the princi- pal amount of any term bonds. (c) At the time of the issuance of such additional bonds, the City shall have on file a certificate from an independent licensed professional engineer or engineering firm experienced in airport operations that in his or its profes- sional opinion the net iricome of the Renton Municipal Airport will equal at least 1.5 times the amount required each calendar year there- after to pay the principal of and interest on the bonds then outstanding against the Bond Fund. and on the additional parity bonds to be issued, excluding the principal amount of any term bonds. Such certificate shall also demonstrate that amounts will be available to redeem and retire any term bonds prior to or at maturity. -11- � • , 1 • • � Computation of estimated future net revenues shall. be based upon income and expense state- ments of the Renton Municipal Airport for any twelve consecutive months out of the twenty- four months preceding the date of issuance of the proposed bonds adjusted to reflect: (1) Annualized net revenue to be received � from present lessees, users and custo- mers as a result of any rental rate� adjustment made prior to or concurrent with the issuance of the additional parity bonds; (2) Annualized net revenues from any expan- sion of facilities or betterments made prior to the issuance of the additional parity bonds but not reflected fully in the base period statement; and (3) Annualized net revenues to be realized from the improvements to be financed from the proceeds of the proposed parity bonds. Section 10. In the event the City shall issue advance I refunding bonds pursuant to the laws of the State of Washington to pay the principal of and interest on the Bonds as the same become due and payable and to refund all of the then outstanding Bonds to pay the costs of refunding, and shall have irrevocably set aside for and pledged to such payment and refunding cash or direct obligations of the United States of America or other legal investments sufficient in amount together with known earned income from the investment thereof to make such payments to and accomplish the refunding as scheduled, and shall irrevocably make provision for redemption of the Bonds, then in that case all right and interest of the owners or holders of the Bonds to be refunded in such Bonds and the appurtenant coupons, in the covenants of this ordinance or any other ordinance, and in the gross revenues obligated to the payment of such Bonds, except the right to receive the funds so set aside and pledged, shall thereupon cease and become void, and the City may then apply any monies in any fund or account established for the payment or redemption of the Bonds or coupons to any lawful purposes as it shall determine. -12- . • � In the event that the refunding plan provides that the refunding bonds be secured by cash and/or direct obligations of the United States of America or other legal investments pending the prior redemption of those Bonds being refunded and if such refunding plan also provides that certain cash and/or direct obligations of the United States of America or other legal investments are irrevocably pledged for the prior redemption of those Bonds included in the refunding plan, then only the debt service on the Bonds and the refunding bonds payable from the gross revenues of the Renton Municipal Airport shall be included in the computation of coverage for issuance of parity bonds and in the annual computation of coverage for detexmining compliance with the rate covenants. Section 11. There is hereby created in the office of the City Treasurer the "Renton Airport Construction Fund, 1973" (herein sometimes referred to as the "Construction Fund") . The proceeds of the Bonds, all grants from the United States of America for the purpose of paying part of the cost of carrying out the Phase II Development Project, and any other monies received by or available to the City for such purpose, w'ill be deposited into the Construction Fund. The Construction Fund shall be used sel�ly for the purpose of paying the costs of carrying out the Phase II Development Project and for paying the costs incidental to issuing Bonds. Monies in the Construction Fund may be invested until needed and the income from such invest- ments shall be deposited into the Construction Fund. At such time as all of the costs for which the Construction �und is to be used are paid, the City may provide for the use of any monies remaining in the Construction Fund for other airport purposes or for deposit thereof into the Reserve Account of the Bond Fund. Section 12 . Seattle-Northwest Securities Corporation of Seattle, Washington, heretofore offered to purchase the Bonds -13- . • .•., � . �. . . * at a price of $97. 00 for each $100. 00 par value of Bonds, plus accrued interest from the date of issuance to the date of delivery of the Bonds, the City to furnish at the City' s expense the printed Bonds and the unqualified approving Iegal opinion of Messrs. Roberts, Shefelman, Lawrence, Gay & Moch, municipal bond counsel of Seattle , Washington. The City Council, being of the opinion that it was in the best interest of the City to accept such offer, duly accepted the same on March 28 , 1973, and such acceptance is hereby ratified and confirmed. The Bonds shall immediately upon their execution be delivered by the Treasurer to Seattle-Northwest Securities Corporation in accordance with its offer. The principal proceeds received from the sale of the 13onds shall be deposited in the �Construction Fund, and the ac�rued interest received shall be deposited into the Principal and Interest Account of the Bond Fund. PASSED by the City Council of the City of Renton, Washington, and APPROVED by the Mayor of the City of Renton, Washington, at a regular open public meeting thereof, the 23rd day of April, 1973. i�'/ ayor ' ATTEST: G�. �,�,c�_ � ` � '- =` - - City Cl'erk t •r ;� -.� �. - � , -- , - APPROVED AS TO FORM: � - � �� � City Attorney Date of Publication 4-27-73 -14- J