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Home My WebLink AboutORD 4120 , -, • . CITY OF RENTON, WASHINGTON ORDINANCE NO. 4120 AN ORDINANCE of the City of Renton, Washington, relating to Local Improvement District No . 332 ; amending Ordinance No . 3982 ; authorizing the issuance and sale of a local improvement district bond anti- cipation note in Local Improvement District No . 332 pending the receipt of the proceeds of the local improvement district bonds authorized to be issued by Ordinance No . 3982 ; and providing for the sale and delivery of that note to Rainier National Bank, Seattle, Washington. WHEREAS, by Ordinance No . 3982 passed by the City Council April 7, 1986 , the City ordered the construction and installa- tion of certain improvements on portions on Oakesdale Avenue S.W. and the construction and installation of a new sanitary sewer from the existing Metro interceptor lying northerly at S.W. Grady extending north along the westerly margin of the P-1 Channel to Monster Road S.W, and the vicinity of the Container Corporation on-site waste disposal system pursuant to Resolution No . 2636, and, after a public hearing thereon, established Local Improvement District No . 332 and provided for the issuance and sale of local improvement district war- rants or other short-term obligations; and WHEREAS, pursuant to Ordinance No . 3994 the City issued its Local Improvement District No . 322 Bond Anticipation Note in the principal amount of $3 , 000 , 000 to pay part of the cost of carrying out the improvements within Local Improvement District No . 332 ; and ORDINANCE N0. 4120 WHEREAS, the cost of constructing the improvements has increased and the City Council deems it to be in the best interest of the City that the City borrow money and issue its short-term obligation pursuant to Chapter 39 . 50 RCW in the form of a local improvement district bond anticipation note for the purpose of providing the funds with which to pay those additional costs; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO ORDAIN AS FOLLOWS: SECTION I . Section III of Ordinance No . 3982 is amended to read as follows : SECTION III : The estimated cost and expense of the improvement is declared to be approximately $3 , 934 , 006 . 00 . The entire cost and expense of the improvement, including the cost and expense of all engineering, legal , inspection, advertising, publica- tion of notices and other expenses incidental there- to, shall be borne by and assessed against the pro- perty specially benefited by that improvement included in the Local Improvement District No . 332 established, embracing, as near as may be, all pro- perty benefited by the improvement . SECTION II . A local improvement district bond anticipation note of the District (the "Note" ) shall be issued in the prin- cipal amount of $900, 000 to pay part of the cost of constructing the improvements in Local Improvement District No . 332 . The - 2 - ORDINANCE NO. 4120 Note shall be designated Local Improvement District No . 332 Bond Anticipation Note, Issue No . 2 ; shall be numbered 1; shall be dated December 31, 1987; shall mature on December 31, 1988 ; and shall bear interest at the rate of 7 . 34% per annum up to and including May 31 , 1988 , and thereafter shall bear interest at a rate equal to 80% of the published prime rate of Rainier National Bank adjusted immediately for any changes in that prime rate, calculated on the basis of a 360-day year for the actual number of days elapsed, payable quarterly, commencing March 1 , 1988 , and at maturity with full obligation on the part of the City to pay interest at the same variable rate from and after the maturity or call date of the Note until the Note with inter- est is paid in full or until sufficient money for its payment in full is on deposit in the Local Improvement Fund, District No . 332 (the "Note Fund" � , created by Ordinance No . 3892 , as amended, and the Note has been duly called for redemption in the manner hereinafter provided. During the fixed interest rate period, the Note is not subject to redemption prior to its maturity date . After conversion to a variable interest rate, the City reserves the right and option to prepay the Note prior to its maturity date upon giving five days ' written notice to Rainier National Bank. Both principal of and interest on the Note shall be payable solely out of the Note Fund from the proceeds of local improve- ment district bonds authorized to be issued by Ordinance No . 3892 , as amended, or other short-term obligations to be - 3 - ORDINANC� NO. 4120 deposited in that fund and/or prepaid special benefit assess- ments deposited in that fund, and from the Local Improvement Guaranty Fund of the City, and shall be payable in lawful money of the United States of America . Principal of the Note is payable at the office of the City Finance Director in Renton, Washington, and interest is payable by check, draft or warrant mailed at least one business day prior to each interest payment date to Rainier National Bank at its principal office in Seattle, Washington. The Note may not be assigned or trans- ferred. The City Council declares and finds that the fixing of the above fixed interest rate and variable interest rate index is in the best interests of the City. SECTION III . The Note shall be printed, lithographed, typed or multicopied on good bond paper in a form consistent with the provisions of this ordinance, shall be manually signed by the Mayor and City Clerk, and shall have the seal of the City impressed thereon. SECTION IV. The City covenants that it will take all actions necessary to prevent the interest on the Note from being included in gross income for federal income tax purposes , and it will neither take any action nor make or permit any use of proceeds of the Note or other funds of the City at any time during the term of the Note which will cause the interest on the Note to be included in gross income for federal income tax purposes . - 4 - ORDINANCE N0. 4120 The City further covenants 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 certifi- cations may not be relied upon. SECTION V. The City finds and declares that (a) it is a duly organized and existing governmental unit of the State of Washington and has general taxing power; (b) the Note is not a "private activity bond" within the meaning of Section 141 of the Code; (c) at least 95% of the net proceeds of the Note will be used for local governmental activities of the City (or of a governmental unit the jurisdiction of which is entirely within the jurisdiction of the City) ; (d) the aggregate face amount of all tax-exempt obligations (other than private activity bonds) issued by the City and all entities subordinate to the City (including any entity which the City controls or which derives its authority to issue tax-exempt obligations from the City) during the current calendar year is not reasonably expected to exceed $5, 000, 000 ; and (e) the amount of tax-exempt obligations , including the Note, designated as "qualified tax-exempt obliga- tions" for the purposes of Section 265(b) (3) of the 1986 Code, as amended (the "Code" ) , or any predecessor provision of federal law by the City during the calendar year in which the Note is issued does not exceed $10, 000, 000 . The City therefore certi- fies that it is an issuer which qualifies for the small govern- mental issuer arbitrage rebate exemption under Section 148(f) (4) (C) of the Code and designates the Note as a "qualified - 5 - ORDINANCE N0. 4120 tax-exempt obligation" for the purposes of Section 265(b) (3) of the Code. SECTION VI . Rainier National Bank of Seattle, Washington, has submitted an offer to purchase the Note at a price of par, the City to furnish the Note and the approving legal opinion of Roberts & Shefelman, municipal bond counsel of Seattle, Washington, at the City' s expense. Bond counsel shall not be required to review or express any opinion concerning the com- pleteness or accuracy of any official statement, offering cir- cular or other sales material issued or used in connection with the Note, and bond counsel ' s opinion shall so state. The City Council finds that it is in the best interest of the City that the offer be accepted, and accepts the same . The Note, there- fore, immediately upon its execution, shall be delivered to the purchaser in Seattle, Washington, upon payment therefor in accordance with that offer . - 6 - ORDINANCE N0. 4120 SECTION VII . This ordinance shall be effective upon its passage, approval and five days after publication. PASSED BY THE CITY COUNCIL this 21st day of December, 1987 . c.vJ � Maxine E. Motor, City Cierk APPROVED BY THE MAYOR this 21st day of December, 1987 . �a+�.ba�a� ► r�oc,'P. Barbara Y. h�h, Mayor Approved as to form: ► Yl Date of Pu151ication: December 25 , 1987 2064r - 7 -