Loading...
HomeMy WebLinkAboutORD 3986Amended by Ordinance No. 3995 CITY OF RENTON, WASHINGTON ORDINANCE NO. 3986 AN ORDINANCE of the City of Renton, Washington, relating to incurring of indebtedness of the City; providing for the issuance of $9,220,000 principal amount of Limited Tax General Obligation Bonds, 1986, of the City, for the purpose of providing a part of the funds to (1) pay, redeem and retire the City's outstanding Limited Tax General Obligation Golf Course Bond Anticipation Note, 1985; (2) expand the City library; (3) purchase wetlands to control drain- age and provide and preserve wildlife habitat; (4) acquire various equipment; (5) construct various golf course improvements; and (6) construct a community center; fixing the date, form, maturities, interest rates, terms and covenants of such bonds; establish- ing various accounts; and providing for the sale of such bonds. WHEREAS, the City of Renton, Washington (the "City"), is in need of paying and redeeming, both principal and interest, its outstanding $3,965,000 principal amount Limited Tax General Obligation Golf Course Bond Anticipation Note, 1985 (the "Out- standing Note"), the estimated cost of which is $4,055,000; constructing an addition to the library, the estimated cost of which is $1,200,000; purchasing wetlands to control drainage and provide and preserve wildlife habitat, the estimated cost of which is $100,000; acquiring various equipment, the estimated cost of which is $515,000; making various golf course improve- ments, the estimated cost of which is $850,000; constructing a community center, the estimated cost of which is $2,500,000; and the City does not have available sufficient funds to pay such costs; and ORDINANCE NO.. 39.$6 WHEREAS, the City Council has determined it to be in the best interests of the City to issue its limited tax general obligation bonds to pay such costs; and WHEREAS, Seattle -Northwest Securities Corporation has offered to purchase the bonds authorized herein (the "Bonds") under the terms and conditions hereinafter set forth in the form of a purchase agreement; NOW, THEREFORE; THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO ORDAIN as follows: Section 1. The assessed valuation'of the taxable property of the City as ascertained by the last preceding assessment for City purposes for the calendar year 1986 is $1,831,398,601, and the City has outstanding general indebtedness evidenced by limited tax general obligation bonds, notes and installment contracts in the principal amount of $8,134,778 incurred within the limit of up to 3/4 of 1% of the value of the taxable prop- erty within the City permitted for general municipal purposes without a vote of the qualified voters therein, of which $3,965,000 will be refunded from the proceeds of the issuance and sale of the bonds authorized herein, and unlimited tax general obligation bonds in the principal amount of $6,675,000 incurred within the limit of up to 2-1/2% of the value of the taxable property within the City for capital purposes only, pursuant to a vote of the qualified voters of the City, and the amount of indebtedness for which bonds alre herein authorized to be issued is.$9,220,000. - 2 - I f ORDINANCE NO. 39.86 Section 2. The City shall borrow money on the credit of the City.and issue negotiable limited tax general obligation bonds evidencing such indebtedness in the amount of $9,220,000 for the purpose of providing a part of the money required to (1) pay, redeem and retire the Outstanding Note; (2) expand the City library; (3) purchase wetlands to control drainage and provide and preserve wildlife habitat; (4) acquire various equipment; (5) construct various golf course improvements; and (6) con- struct a community center, and to pay the costs of issuance and sale of the Bonds. Such general indebtedness to be incurred shall be 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.. Section 3. The Bonds shall be called Limited Tax General Obligation Bonds, 1986. The Bonds shall be dated June 1, 1986; shall be in the denomination of $5,000 each 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 purpose of identification; shall bear interest at the rates specified in the successful bid, payable on June 1, 1987, and semiannually thereafter on each succeeding December 1 and June 1; and shall mature on June 1 in years and amounts as follows: - 3 - 1- ` ORDINANCE NO. 39861 ' J Maturity 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Amounts $385,000 410,000 435,000 455,000 480,000 515,000 555,000 500,000 525,000 570,000 610,000 650,000 700,000 755,000 805,000 870,000 Bond proceeds used to purchase and acquire equipment shall be deemed derived from Bonds maturing during the years 1987 to and including 1993. If any Bond is not redeemed upon proper presentment at its maturity or call date, the City shall be obligated to pay inter- est at the same rate for each such Bond from and after its maturity or.call date until such Bond, both principal and inter- est, is paid in full or until sufficient money for such payment in full is on deposit in the General Government Miscellaneous Debt Service Fund (the "Debt Service Fund"), and such Bond has been called for payment. Upon surrender thereof to the Bond'Registrar, Bonds may be exchanged for Bonds in any authorized denomination of an equal aggregate 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. - 4 - ' ORDINANCE NO. 3986 Such exchange or transfer shall be without cost to the owner or transferee. The Bond Registrar shall not be required to exchange or transfer any Bond during the fifteen days preceeding any principal payment or redemption date. The Bonds shall be issued only in registered form as to both principal and interest and recorded in the books and 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 Bonds held by each owner. Both principal of and interest on the Bonds shall be pay- able in lawful money of the United States of America. Interest on the Bonds shall be paid by check or draft mailed to the registered owners at the addresses appearing on the Bond Register on the fifteenth day of the month preceding the.inter- est payment date or, when requested in writing by a registered owner and approved by the City Finance Director, shall be` -paid on the interest payment date by wire transfer to the account identified by the requesting registered owner whose name, address and wire transfer account number appear on the Bond Register fifteen days 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 office of the Bond Registrar, in Seattle, Washington, and New York, New York, at the option of such owners. ' ORDINANCE NO. 39861 Bonds maturing in the years 1987 through 1996 shall be issued without the right or option of the City to redeem the same prior to their stated maturity dates. The City reserves the right and option to redeem Bonds maturing in the years 1997 through 2002, as a whole, or in part in.inverse order of matur- ity (and by lot within a maturity in such manner as the Bond Registrar shall determine), on June 1, 1996, and on any interest payment date thereafter, at par, plus accrued interest to the date.of redemption. Portions of the principal amount of any Bond, .in installments of $5,000 or any integral multiple of $5,000, may be redeemed. If less than all of the.principal amount of any Bond is redeemed, upon surrender of such Bond at the principal office 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 like maturity and interest rate in any of the denominations author- ized by this ordinance. Notice of any such intended redemption shall 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 regis- tered owner of any Bond to be redeemed at the address appearing on the Bond Register. The requirements',of this section shall be deemed to be complied with when notice is mailed as herein provided, whether or not it is actually received by the owner of any Bond. The interest on the Bonds so'called for redemption shall cease on the date fixed for redemption unless such Bond or n ORDINANCE NO. 3.986 _ Bonds so called are not redeemed upon presentation made pursuant to such call. In addition, such 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, but such mailing shall not be a condition precedent to the redemp- tion of such Bonds. The City further reserves the right to purchase any or all of the Bonds in the open market at any price not in excess of par plus accrued interest to date of such purchase. Section 4. The City irrevocably pledges to levy taxes annually for as long as any of the Bonds are outstanding within the constitutional and statutory tax limitations provided by law without a vote of the electors of the City on all of the prop- erty in the City subject to taxation in an amount sufficient, together with other money legally available and to be used therefor, topay the principal of and interest on the Bonds as the same shall become due, 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 5. The Bonds shall be printed on lithographed or 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, both of whose signatures shall be in facsimile, and a - 7 - • ORDINANCE NO. 3986 r facsimile reproduction of the seal of the City shall be printed thereon. Only such Bonds as shall bear thereon a Certificate of Authentication in the following form, manually executed 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, Limited Tax General Obligation Bonds, 1986, described in the within mentioned Bond Ordinance. WASHINGTON STATE FISCAL AGENCY Bond Registrar By Authorized Signature Such Certificate of Authentication shall be conclusive evidence that the Bonds so authenticated have been duly executed, authen- ticated and delivered hereunder and are entitled to the benefits of this ordinance. In case either or both of the officers who shall have executed the Bonds shall cease to be such officer or officers of the City before the Bonds so signed shall have been authenti- cated or delivered by the Bond Registrar or issued by the City, such Bonds nevertheless may be authenticated, delivered and issued and upon such authentication, delivery and issue, shall be as binding upon the City as though those whose facsimile signatures appear on the Bonds had continued to be such officers of the City. Any Bond also may be signed on behalf of the City 8 - ORDINANCE NO. 3986 by such persons as at the actual date of execution of such Bond shall be proper officers of the City authorized to execute Bonds although on the original date of such Bond such persons were not such officers of the City. Section 6. 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 shall be responsible for its representa- tions contained in the 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 depositary 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. Section 7. The Bonds shall be negotiable instruments to the extent provided by RCW 62A.8-102 and 62A.8-105. Section 8. The following accounts are created in the following funds previously created in the Office of the -City Finance Director: the Library Expansion Account, the Wetlands Purchase Account and the Community Center Account in the General Capital Improvements Fund, the Equipment Acquisition Accounts in the General Capital Improvements Fund and the Equipment Rental Fund, and the Golf Course Improvements Account in the Golf Course Operations Fund (collectively, the "Construction - 9 - ORDINANCE NO. 3986 , Accounts"). The proceeds of the sale of the Bonds, exclusive of the accrued interest thereon which shall be paid into the Debt Service Fund, shall be deposited as follows: (1) $4,055,000 into the account established for redemption of the Outstanding Note in Fund No. 404 (Golf Course Operations) to be used to pay and redeem the Outstanding Notes; (2) $1,200,000 into the Library Expansion Account to be used to pay a part of the cost of expanding the City library; (3) $100,000 into the Wetlands Purchase Account to be used to purchase wetlands; (4) $515,000 into the Equipment Acquisition Accounts to be used to acquire equipment; (5) $850,000 into the Golf Course Improvements Account to be used to construct improvements to the Golf Course; and (6) $2,500,000 into the Community Center Account to be used to construct a community center and/or public safety facili- ties. The costs of issuance and sale of the Bonds shall be allocated prorata among the purposes of the Bonds. Pending the expenditures of such principal proceeds, the City may temporar- ily invest such proceeds in any legal investment and the i.nvest- ment earnings may be retained in the Construction Accounts and used for the purposes of such accounts. Section 9. The City will not take or permit to be taken on its behalf any action which would adversely affect the exemption from federal income taxation of the interest on the Bonds and will take or require to be taken such acts as may reasonably be within its ability and as may from time'to time be required under applicable law to continue the exemption from federal - 10 - ORDINANCE NO. 3986 , income taxation of the interest on the Bonds. Without limiting the generality of the foregoing, and except to the extent the investment of any Bond proceeds is limited to a yield required to comply with federal arbitrage regulations, the City will spend the proceeds of the Bonds with due diligence to completion of the purposes specified herein and will not invest or make other use of the proceeds of the Bonds or of its other money at any time during the term of the Bonds which, if such use had been reasonably expected at the date that the Bonds are issued, would have caused such Bonds to be arbitrage bonds within the meaning of Section 103(c) of the United States Internal Revenue Code of 1954, as amended, and applicable regulations thereunder. In addition, if future federal laws or regulations require the payment of any federal tax or rebate or the observing of any other requirement to maintain the exemption from federal income taxation of the interest on the Bonds, the City shall make any such payment and observe any such requirement to the extent permitted by law. For the purpose of this paragaraph, the imposition by any future federal law of any alternative tax on the interest on the Bonds shall not be deemed to be an event requiring the City to observe any such requirement. The City has not been notified of any listing or proposed listing by the Internal Revenue Service to the effect that the City is a bond issuer whose arbitrage certifications may not be relied upon. ORDINANCE NO. 3986 x Section 10. In the event the City shall issue advance refunding bonds pursuant to the laws of'the State of. Washington, or have money available from any other lawful source, to pay the principal of and interest on the Bonds or such portion thereof included in the refunding plan as the same become due and pay- able and to refund all such then outstanding Bonds and to pay the costs of refunding, and shall have set aside irrevocably in a special fund for and pledged to such payment and refunding money and/or direct obligations of the United States of America or other legal.investments sufficient in amount, together with known earned income from the investments thereof, to make such payments and to accomplish the refunding as scheduled (herein- after called the "trust account"), and shall make irrevocable provision for redemption of such Bonds, then in that case all right and interest of the owners of the Bonds to be so retired or refunded (hereinafter collectively called the "defeased Bonds") in the covenants of this ordinance and, except as here- inafter provided, in the funds and accounts obligated to the payment of such Bonds shall thereafter cease and become void. Such owners shall thereafter have the right to receive payment of the principal of and interest on the defeased Bonds from the trust account and, in the event the funds in the trust account are not available for such payment, shall have the right to receive payment of the principal of and interest on the defeased Bonds from the funds and accounts obligated to the payment of such Bonds. Anything herein to the contrary notwithstanding, - 12 - ` ORDINANCE NO. 3986 ' the pledge of the full faith and credit of the City to the payment of the Bonds shall remain in full force and effect after the establishing and full funding of such trust account. Sub- ject to the rights of the owners of Bonds, the City may then apply any money in any other fund or account established for the payment or redemption of the defeased Bonds to any lawful pur- poses as it shall determine. Section 11. Pending the printing, execution and delivery to the purchaser of the definitive Bonds, the City may cause to be executed and delivered to such purchaser a single temporary Bond in the principal amount of $9,220,000. Such temporary Bond shall bear the same date of issuance, interest rates, principal payment dates, options of redemption, terms and covenantsas the definitive Bonds, and shall be issued as a fully registered Bond in the name of such purchaser, and shall be in such forim..as is acceptable to such purchaser. Such temporary Bond shal_..be exchanged for the definitive Bonds as soon as the same are printed, authenticated and available for delivery. If the definitive Bonds are not ready for exchange and delivery within 45 days from the date of delivery of the temporary Bond, such temporary Bond shall be immediately retired at the original purchase price thereof plus accrued interest. Section 12. The Bonds shall be sold for cash at public sale for not less than $98 per $100 par value, plus accrued interest to the date of delivery of and payment for the Bonds. - 13 - I T ORDINANCE.NO. 3986 The. City Finance Director is authorized and directed to give notice calling for bids to purchase the Bonds and shall publish a short abbreviated form of such notice once in the Daily Journal of Commerce. Such notice shall specify that sealed bids for the purchase of the Bonds shall be received by the City Finance Director at his office, City Hall, 200 Mill Avenue South, Renton, Washington, on May 19, 1986, up to 11:00 a.m., local time, at which time all bids will be publicly opened and read and an award made by City Council at its regular meet- ing at 8:00 p.m., local time, on the same date in the Council Chambers of the City Hall. i Bids shall be invited for the purchase of the Bonds with fixed maturities in accordance with the schedule specified in Section 3. The notice shall specify the maximum net effective rate of interest the Bonds shall bear, namely, 10% per annum, and shall require each bidder to submit a bid specifying the lowest rate of interest and discount, if any, at which the bidder will purchase the Bonds. No bid will be considered for the Bonds for less than $98 per each $100 par value plus accrued interest or for less than the entire issue. The purchaser must pay accrued interest, if any, to the date of delivery of the Bonds. Interest rates shall be in multiples of 1/8 or 1/20 of 1%. No more than one rate of interest may be fixed for single - 14 - ORDINANCE.NO.. 39.86 ' maturity. The maximum differential between the lowest and highest interest rates named in any bid shall not exceed 3%. For the purpose of comparing the bids only, the lowest net interest cost bid being controlling, each bid shall state the total interest cost over the life of the Bonds and the net effective interest rate of the bid. The Bonds shall be sold to the bidder making the best bid, subject to the right of the City Finance Director to reject any and all bids and to readvertise the Bonds for public sale or to negotiate for the private sale of the Bonds, and no bid for less than all of the Bonds shall be considered. The City further reserves the right to waive any irregularity in any bid or in the bidding process. All bids shall be sealed and.shalll'be accompanied by a deposit of $250,.000. Each deposit shall be by either cash or certified or cashier's check made payable to the City Finance Director and shall be returned promptly;if the accompanying bid is not accepted. The City reserves the right to invest the good faith deposit of the purchaser pending the payment for the Bonds. The purchaser shall not be credited for such earnings. If the Bonds are ready for delivery and the successful bidder shall fail or neglect to complete the purchase of the Bonds within forty days following the acceptance of its bid, the amount of its deposit shall be forfeited to the City and in that event the City may accept the bid of the one making the next best bid. If there are two or more equal bids for not less than - 15 - ORDINANCE NO. 3986 • the maximum discount plus accrued interest and such bids are the best bids received, the City Council shall determine by lot which bid shall be accepted. The Bonds will be delivered to the successful bidder upon payment of the purchase price plus accrued interest to the date of delivery, less the amount of the good faith deposit, in Seattle, Washington, at the City's expense, or at such other place upon which the City Finance Director and the successful bidder may mutually agree at the purchaser's expense. Settlement shall be made in federal funds immediately available at the time of delivery of the Bonds. A no -litigation certificate in the usual form will be included in the closing papers. CUSIP numbers will be printed on the Bonds,if requested in the bid of the successful bidder, but neither failure to print such numbers on any Bond nor error with respect thereto shall constitute cause for a failure or refusal by the purchaser thereof to accept delivery of and pay for the Bonds in accord- ance with the terms of the purchase contract. All expenses in relation to the printing of CUSIP numbers on the Bonds shall be paid by the City; but the fee of the CUSIP Service Bureau for the assignment of those numbers shall be the responsibility of and shall be paid by the purchaser. Any bid presented after the time specified for the receipt of bids will not be received, and any bid not accompanied by the required bid deposit at the time of opening will not be read or considered. 16 - ORDINANCE NO. 3986 If, prior to the delivery of the Bonds, the interest receivable by the owners thereof shall become taxable, directly or indirectly, by the terms of any federal income tax law, the successful bidder may at its option be relieved of its obliga- tion to purchase the Bonds, and in such case the deposit accompanying its bid will be returned, without interest. The notice of bond sale shall provide that the City will cause the Bonds to be printed or lithographed and executed and will furnish the approving legal opinion of Roberts & Shefelman, bond counsel of Seattle, Washington, covering.the Bonds without cost to the purchaser. Bond counsel shall not be required to review or express any 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. Such notice also shall provide that further information regarding the details of the Bonds may be received upon request made to the City Finance Director or to Seattle -Northwest Securities Corporation, the City's financial consultant. PASSED BY THE CITY COUNCIL this 121.` day of April, 1986. Maxine E. Motor, City Clerk 17 - 4 f i ORDINANCE NO. 3986 APPROVED BY THE MAYOR this ti21 day of April, 1986. Barbara Y. Shinpoch, Mayor Approved as to form: Date of,Publication: April 25, 1986 1543r 18 -