HomeMy WebLinkAboutORD 3613 f
CITY OF RENTON, WASHINGTON
ORDINANCE NO. 3613
AN ORDINANCE of the City of Renton, Washington,
relating to contracting indebtedness; providing
for the issuance, specifying the maturities,
maximum effective interest rate, terms and
covenants of . $1 ,825, 000 par value of "General
Obligation Park Bonds, 1982 , " authorized by the
qualified voters of the City at a special
election held therein pursuant to Ordinance No.
3336 , as amended; establishing a bond redemption
fund; providing for the sale of such bonds ; and
amending Section III of Ordinance No. 3336 , as
amended by Section I of Ordinance No. 3350 .
THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON,
DO ORDAIN as follows:
Section 1 . The City of Renton, Washington ( the "City" ) ,
shall presently issue and sell the remaining unissued $1 ,825, 000
par value of negotiable general obligation bonds of the total
$7 ,825 ,000 par value of negotiable general obligation bonds author-
! ize.d`.rbv the qualified voters of the City at a special election held
S`ep-t.ember 18 , 1979 , pursuant to Ordinance No. 3336, passed and
approved July 23 , 1979 , as amended by Ordinance No. 3343 passed and
approved August 6 , 1979 , and Ordinance No. 3350 passed and approved
A.ugu:st 20 , 1979 , $6 ,000 ,000 of such bonds having been issued under
date of May 1 , 1980 , pursuant to Ordinance No. 3399 , as amended by
rdirnanc,e,,;No. 3404 , for the purpose of completing the construction
of recreational facilities including boat launch , fishing pier,
trails , day moorage, parking , floating structures, and other
equipment and materials incidental thereto, at the Gene Coulon
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Memorial Beach Park. The bonds shall be designated "General
Obligation Park Bonds, 1982" (the "Bonds" ) , of the City; shall be
dated April 1, 1982; shall be in the denomination of $5,000 each;
shall be numbered from 1 to 365, inclusive; and shall bear interest
at the rate or rates specified in the winning bid for the Bonds,
but not in excess of an effective rate of 16% per annum, payable on
April 1, 1983, and semiannually thereafter on each succeeding
October 1 and April 1 , as evidenced by coupons to be attached to
the Bonds representing interest to maturity. If any Bond is not
redeemed when duly presented at its maturity or call date thereof,
the City shall be obligated to pay interest at the coupon rate for
each such Bond from and after the maturity or call date until such
Bond, both principal and interest, shall have been paid in full or
until sufficient money for such payment in full is on deposit in
the "General Obligation Park Bond Fund, 1982" (the "Bond Fund" ) ,
hereinafter created, and such Bond has been duly called for payment.
Both principal of and interest on the Bonds are to be paid in
lawful money of the United States of America, which at the time of
payment shall be legal tender for the payment of public and private
debts, at the office of the City Finance Director, or, at the
option of the holder, at either fiscal agency of the State of
Washington in Seattle, Washington, or New York, New York. The
`onds shall mature serially, annually, in order of their numbers in
the following amounts on April of each of the following years (such
maturity schedule being computed at an assumed interest rate of
13.20% per annum) :
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Bond Numbers Maturity
( Inclusive) Amounts Years
1 to" 5 $ 25,000 1984
6-to 11 30,000 1985
12 to 18 35,000 1986
19 to 25 35,000 1987
26 to 33 40,000 1988
34 to 42 45,000 1989
43 to 53 55,000 1990
54 to 65 60,000 1991
66 to 79 70,000 1992
80 to 94 75,000 1993
95 to 111 85,000 1994
112 to 131 100,000 1995
132 to 153 110 ,000 1996
154 to 178 125,000 1997
179 to 207 145,000 1998
208 to 239 160,000 1999
240 to 276 185,000 2000
277 to 318 210 ,000 2001
319 to 365 235,000 2002
The City reserves the right to redeem any or all of the
Bonds prior to their stated maturity dates as a whole, or in part
in inverse numerical order, on April 1, 1992, or any semiannual
interest payment date thereafter at the following percentages of
par if called on the following dates, plus accrued interest to date
redemption:
Call Dates Call Prices
On April 1 , 1992, or October 1 , 1992 101%
On April 1, 1993, or October 1, 1993 100. 5%
On April 1, 1994, and thereafter 100% (par)
Notice of such intended redemption shall be published in
thy-,.offficial newspaper of the City, or if there is no official
newspaper, then in a newspaper of general circulation in the City,
at least once not less than 30 nor more than 45 days prior to' the
call date, and a copy of such notice shall be mailed within the
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same period _to the main office of the principal underwriter or
account manager of the successful bidder for the Bonds, or its
successor. In addition, such redemption notice shall be sent to
Moody' s Investors Service, Inc. , and Standard & Poor' s Corporation,
at their offices in New York, New York , but the mailing of such
notice to such New York firms shall not be a condition precedent to
the redemption of such Bonds. Interest on any Bonds so called for
redemption shall cease on such call date upon payment of the
redemption price into the Bond Fund .
The City further reserves the right to purchase any or
all of the Bonds in the open market at any time at a price not in
excess of the redemption price on the next call date after such
purchase plus accrued interest to date of purchase.
Section 2 . The City irrevocably pledges itself to levy
taxes annually, without limitation as to rate or amount, on all
property in the City subject to taxation in an amount sufficient,
together with other money legally available and to be used therefor,
to pay the principal of and interest on the Bonds as the same shall
become due, except that if the City Council so directs or is so
ordered by a court having jurisdiction over the City on this
matter, the interest on the Bonds in excess of the effective rate
of 8% per annum shall be paid from the regular property taxes and
other money collected by the City without a vote of the electors,
and in such event the City Council pledges that it will budget.
sufficient money annually to pay that interest obligation. The
full faith, credit and resources of the City are hereby irrevocably
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pay the costs of issuance and sale of the Bonds. Pending the
expenditure of such principal proceeds, the City may temporarily
invest such proceeds in any legal investment and the investment
earnings may be retained in the "Gene Coulon Memorial Beach Park
Fund" and expended for the purposes of such fund. All taxes
collected for and other money allocated to the payment of the
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principal of and interest on the Bonds shall be deposited in the
Bond Fund . Pending the receipt of the proceeds from the issuance
of the Bonds , interest-bearing warrants may be drawn on the "Gene
Coulon Memorial Beach Park Construction Fund" to provide interim
funds to pay such costs , such loan to be repaid from the proceeds
received from the issuance of the Bonds. The interest on such
warrants may be fixed by the City Finance Director at a rate or
rates not in excess of 16% per annum.
Section 6 . The Bonds shall be sold for cash at public
sale for not less than par, plus accrued interest.
The City Clerk is hereby authorized to give notice
calling for bids to purchase the Bonds by publishing the same once
a week for four consecutive weeks in the official newspaper of the
City, or if there is no official newspaper, then in a newspaper of
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general circulation in the City and a short abbreviated form of
such notice shall also be published once in The Seattle Daily
Journal of Commerce and Northwest Construction Record of Seattle,
Washington, at least ten days prior to the sale date. Such notice
shall specify that sealed bids for the purchase of the Bonds shall
be received by the City Clerk in her office in the City Hall on
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March 22, 1982 , up to 11 :00 a.m. , local time, at which time all
bids will be publicly opened and read and an award made by the City
Council at its regular meeting to be held in the City Council
Chambers commencing at 8 :00 , p.m. , local time, on the same date.
A copy of the notice shall be mailed to the State Finance
Committee, Olympia, Washington, at least three weeks prior to the
date fixed for the sale.
Bids shall be invited for the purchase of the Bonds with
fixed maturities in accordance with the schedule specified in
Section 1 hereof.
The notice shall specify the maximum effective rate of
interest the Bonds shall bear, namely, 16% per annum, and shall
require bidders to submit a bid specifying :
( a) The lowest rate or rates of interest and
premium, if any, above par at which the bidder
will purchase the Bonds; or
(b) The lowest rate or rates of interest at
which the bidder will purchase the Bonds at par.
No bid will be considered for the Bonds for less than par
and accrued interest. The purchaser must pay accrued interest to
date of delivery of the bonds.
Coupon rates shall be in multiples of 1/8th or 1/20th of
1% , or both. No more than one rate of interest may be fixed for
anyyGne.. maturity. Only one coupon will be attached to each of the
Bonds for each installment of interest thereon, and bids providing
for additional or supplemental coupons will be rejected . The
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maximum differential between the lowest and highest coupon rates
named in any bid shall not exceed 2%.
For the purpose of comparing the bids only, the coupon
rates 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 Council to reject any and all
bids and to readvertise the Bonds for sale in the manner provided
by law, and no bid for less than all of the Bonds shall be consid-
ered . The City further reserves the right to waive any irregularity
in any bid or in the bidding process.
All bids shall be sealed , and , except the bid of the
State of Washington, if one is received , shall be accompanied by a
deposit of $91 , 250 . The deposit shall be either by certified check
or cashier' s check made payable to the City Finance Director and
shall be returned promptly if the 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
„ isbid , 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 be two or more equal bids for not less
than par plus accrued interest and such bids are the best bids
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received , the City Council shall determine by lot which bid shall
be accepted . The Bonds will be delivered to the successful bidder
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upon payment of the purchase price plus accrued interest to the
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date of delivery, less the amount of the good faith deposit, at the
office of the City Clerk or in Seattle, Washingtonj, at the City' s
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expense , or at such other place as the City Clerk and the success-
ful bidder may mutually agree upon at the purchaser' s expense.
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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.
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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 con-
stitute cause for a failure or refusal by the purchaser thereof to
accept delivery of and pay for the Bonds in accordance with the
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terms of the purchase contract. All expenses in relation to the
printing of CUSIP numbers on the Bonds shall be paid by the City;
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but the fee of the CUSIP Service Bureau for the assignment of those
numbers shall be the responsibility of and shall be paid for by the
purchaser. j
Any bid presented after the time specified for the re-
ceipt of bids will not be received , and any bid not accompanied by
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the required bid deposit at the time of opening will not be read or
considered. I
If, prior to the delivery of the Bonds, the interest
receivable by the holders thereof shall become taxable, directly
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or indirectly, by the terms of any federal income tax law, the
successful bidder may at its option be relieved of its obligation
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 signed and will
furnish the approving legal opinion of Messrs. Roberts & Shefelman
(Roberts, Shefelman, Lawrence, Gay & Moch) , bond c�unsel of Seattle,
Washington, covering the Bonds without cost to the purchaser, the
opinion also being printed on each bond . Bond counsel shall not be
required to review or express any opinion concerning the complete-
ness or accuracy of any official statement, offeri?g circular or
other sales material issued or used in connection with the Bonds,
and bond counsel ' s opinion shall so state. Such notice shall also
provide that further information regarding the details of the Bonds
may be received upon request made to the City Cler) or to Seattle-
Northwest Securities Corporation, 3700 Seafirst Fifth Avenue Plaza,
Seattle, Washington, the City' s financial consultant.
Section 7 . Section III of Ordinance No. 3336 passed and
approved July 23 , 1979 , as amended by Section I of Ordinance No.
3350 passed and approved on August 20 , 1979 , is amended to read as
follows:
,,. Section III . The general obligation bonds herein author-
ized to be issued shall be serial in form and shal�i bear interest
which except for the first interest coupon shall be payable semi-
annually , and shall mature in from two to not more than twenty
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years from date of issue, the life of the improvements to be
acquired by such bonds being at least twenty years, in such amounts
as nearly as practicably annually as will result in a difference of
not more than $5 ,000 .00 between the highest and lowest annual
payment of principal and interest, excluding the first two years
from date of issue, computed on such anticipated effective interest
rate as the City Council of the City shall in its discretion
determine will be borne by such bonds and shall be paid by annual
tax levies sufficient in amount to pay both principal and interest
when due, which annual tax levy shall be made without limitation as
to rate or amount, and the bonds shall so provide. The bonds shall
be redeemable at the option of the City at such times as shall be
hereafter determined by ordinance. The date of issue, interest
rate or rates, maturities, form and covenants of such bonds shall
be hereafter fixed by ordinance of the City Council of the City,
and the bonds shall be issued and sold when the proceeds thereof
may be required .
Section 8 . All actions heretofore taken by the City, its
officers or employees, consistent with the provisions of this
ordinance are ratified , approved and confirmed.
Section 9 . This ordinance shall take effect from and
after its passage and five ( 5) days following its publication as
required by law.
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PASSED by the City Council of the City of Renton,
Washington, at a regular open public meeting thereof, this 22nd
day of February , 1982 .
DELORES A. MEAD; City Clerk
APPROVED by the Mayor this 22nd day of February , 1982 .
Barbara Y. Shi poclhMayor
FORM APPROVED:
City Attorney
Publication dates : February 25, '1982
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