HomeMy WebLinkAboutORD 3817 CITY OF RENTON, WASHINGTON
ORDINANCE NO. 3817
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AN ORDINANCE of the City of Renton, Washington;
relating to Local Improvement District No . 326;
amending Ordinance No . 3740; and authorizing the
Issuance and sale of local improvement district bond
tn5)pending
ticipation notes in Local Improvement District No .
the receipt of the proceeds of the local
Improvement district bonds authorized to be issued by
Ordinance No . 3740; and providing for the sale of
such notes to Peoples National Bank, Seattle,
Washington. r
WHEREAS, by Ordinance No. 3740 passed by the City Council
August 1, 1983, the City ordered the construction and instal-
lation of left-turn lanes in the vicinity of N.E . 4th Street
between Union Avenue N.E . and Monroe Avenue N.E . within the
City pursuant to Resolution No . 2504 , and, after a public
hearing thereon, established Local Improvement District No.
326 and provided for the issuance and sale of local improve-
ment district warrants or installment notes; and
WHEREAS, 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 or obligations pursuant to Chapter 39 . 50
RCW in the form of one or more local improvement district bond
anticipation notes for the purpose of providing the funds with
which to pay a part of the costs of carrying out the Improve-
ments ordered in Local Improvement District No . 326; NOW,
THEREFORE,
THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO
ORDAIN AS FOLLOWS :
SECTION I . Section III of Ordinance No . 3740 is amended
to read as follows :
SECTION III . The estimated cost and expense of said
Improvement is hereby declared to be approximately $700,000.
The entire cost and expense of said improvement, including
the cost and expense of all engineering, legal, inspection,
advertising, publication of notices and other expense inci-
dental thereto, less any grants or other money received for
the improvement (estimated to be approximately $250,000) ,
shall be borne by and assessed against property specially
benefited by such improvement included in the Local Improve-
ment District No. 326 (the "District" ) established, embracing,
as near as may be, all property benefited by such improvement .
SECTION II . Section V of Ordinance No. 3740 is amended
to read as follows :
SECTION V. Local improvement district warrants
shall be issued in payment of the cost and expense of the
Improvement herein ordered . Such warrants shall be payable
out of "Local Improvement Fund, District No. 326, " to bear
interest from the date thereof at a rate to be fixed hereafter
and to be redeemed in cash and/or by local improvement dis-
trict bonds herein authorized iz d to be issued said interest-
bearing warrants to be hereafter referred to as "revenue
warrants . " The exact form, amount, date, interest rate and
denomination of said warrants shall be hereafter fixed by
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ordinance of the City Council . In the alternative, the City
may provide by ordinance for the issuance of other short-term
obligations pursuant to Chapter 39 . 50 RCW.
The City is authorized to issue local improvement dis-
trict bonds for the District which shall bear interest at a
rate and to be payable on or before a date to be hereafter
fixed by ordinance. The bonds shall be issued in exchange for
and/or in redemption of any and all revenue warrants or other
short-term obligations issued hereunder and not redeemed in
cash within twenty days after the expiration of the thirty-day
period for the cash payment of assessments without interest on
the assessment roll for the District . The bonds shall be
redeemed by the collection of special assessments to be levied
and assessed against the property within the District, payable
in annual installments, with interest at a rate to be here-
after fixed by ordinance under the mode of "payment by bonds, "
as defined by law and the ordinances of the City. The exact
form, amount, date, interest rate and denominations of such
bonds shall be hereafter fixed by ordinance of the City
Council . Such bonds shall be sold in ,such manner as the City
Council shall hereafter determine .
For those persons found by the City of Renton to be
economically disadvantaged property owners, or other persons
who, under the terms of a recorded contract of purchase,
recorded mortgage, recorded deed of trust transaction, or
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recorded lease are responsible under penalty of forfeiture,
foreclosure or default, the assessment levied for the District
may be deferred until a time previous to the termination of
the District under the terms acceptable to the City and upon
assurance of proper security for the payment of such assess-
ments . Such deferral shall not survive the termination of the
ownership of interest of the economically disadvantaged
property owner or person to whom the deferral was granted and
It shall likewise not survive the sale, transfer or other
action which either terminates the possessory interest of such
property owner or person or which turns the property into
investment, rental or lease property.
SECTION III . For the purpose of paying the cost of
carrying out the improvements ordered in the District local
improvement district bond anticipation
notes of the District
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(the "Notes" ) shall be issued in the total principal amount of
$700, 000 . The Notes shall be dated as of their date of issue;
shall mature on December 31, 1985; shall be in the denomina-
tion of $5,000 each or any integral multiple of $5,000; and
shall be numbered separately and in the manner and with any
additional designation as the Note Registrar (collectively,
the fiscal agencies of the State of Washington located in
Seattle, Washington, and New York, New York) , deems necessary
for the purpose of identification. Interest shall- be computed
on the basis of a 360-day year of twelve 30-day months . The
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Notes shall bear interest at the rate of 8% per annum, payable
on January 1, 1985, and July 1, 1985, and at maturity.
The Notes shall be issued only in registered form as to
both principal and interest on books or records maintained by
the Note Registrar (the "Note Register" ) . Such Note Register
shall contain the name and mailing address of the owner of
each Note or nominee of such owner and the principal amount
and number of Notes held by each owner or nominee . '
Notes may be transferred only if endorsed in the manner
provided thereon and surrendered to the Note Registrar . The
transfer of a Note shall be by the Note Registrar ' s receiving
the Note to be transferred, cancelling it and issuing a new
certificate in the form of the Notes to the transferee after
registering the name and address of the transferee on the Note
Register . Such exchange or transfer shall be without cost to
the owner or transferee .
Both principal of and interest on the Notes shall be
payable solely out of the Local Improvement Fund, District No .
326 (the "Note Fund" ) created by Ordinance No . 3790, as.
amended, and from the Local Improvement Guaranty Fund of the
City, and shall be payable in lawful money of the United
States of America . Interest on the Notes shall be paid by
check or draft mailed to the registered owners or nominees at
the addresses appearing on the Note Register on the 15th day
of the month preceding the interest payment date . Principal
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of the Notes shall be payable upon presentation and surrender
of the Notes by the registered owners at the principal offices
of either of the fiscal agencies of the State of Washington in
Seattle, Washington, and New York, New York, at the option of
such owners .
The Notes shall be issued without the right or option of
the City to redeem the same prior to their maturity date.
SECTION IV. The Notes shall be printed, lithographed, '
typed or multicopied on good bond paper in a form consistent
with the provisions of this ordinance and State law, shall be
signed by the Mayor and the City Clerk, one or both of whose
signatures may be manual or in facsimile, and shall have the
seal of the City impressed thereon or a facsimile reproduction
of that seal printed thereon.
Only such Notes as shall bear thereon a Certificate of
Authentication in the following form, manually executed by the
Note Registrar, shall be valid or obligatory for any purpose
or entitled to the benefits of this ordinance:
CERTIFICATE OF AUTHENTICATION
This note is one of the fully registered City of
Renton, Washington, Local Improvement District No .
326 Bond Anticipation Notes described in the within
mentioned ordinance .
Washington State Fiscal Agency
Note Registrar
By
Authorized Officer
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Such Certificate of Authentication shall be conclusive evi-
dence that the Notes so authenticated have been duly executed,
authenticated and delivered hereunder and are entitled to the
benefits of this ordinance .
In case one or both of the officers who shall have
executed the Notes shall cease to be such officer or officers
of the City before the Notes so signed shall have been
authenticated or delivered by the Note Registrar, or issued by '
the City, such Notes may nevertheless be authenticated,
delivered and issued and upon such authentication, delivery
and issue, shall be as binding upon the City as though those
who signed the same had continued to be such officers of the
City. Any Note also may be signed on behalf of the City by
such persons as at the actual date of execution of such Note
shall be proper officers of the City although at the original
date of such Note any such person shall not have been such
officer of the City.
SECTION V. The Note Registrar shall keep, or cause to be
kept, at its principal corporate trust office, sufficient
books for the registration and transfer of the Notes, which
shall at all times be open to inspection by the City. The
Note Registrar is authorized, on behalf of the City, to
authenticate and deliver Notes transferred or exchanged in
accordance with the provisions of such Notes and this ordi-
nance and to carry out all of the Note Registrar ' s powers and
duties under this ordinance .
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The Note Registrar shall be responsible for its represen-
tations contained in the Registrar ' s Certificate of Authenti-
cation on the Notes . The Note Registrar may become the owner
of Notes with the same rights it would have if it were not the
Note Registrar, and to the extent permitted by law, may act as
depository for and permit any of its officers or directors to
act as a member of, or in any other capacity with respect to,
any committee formed to protect the rights of Note owners . '
SECTION VI . The Notes shall be negotiable instruments to
the extent provided by RCW 62A.8-102 and 62A.8-105 .
SECTION VII . The City covenants that it will spend the
principal proceeds of the Notes with due diligence to comple-
tion of the purposes specified in this ordinance and will make
no use of the proceeds of the Notes or other funds of the City
at any time during the term of the Notes which will cause the
Notes to be arbitrage bonds within the meaning of Section
103 (c) of the United States Internal Revenue Code of 1954 ,
as amended, and the applicable regulations promulgated
thereunder .
SECTION VIII . Peoples National Bank of Washington in
Seattle, Washington, has submitted an offer to purchase all of
the Notes at a price of $99 per each $100 of par value, plus
accrued interest from the date of the Notes to the date of
their delivery to the purchaser, the City to furnish the Notes
and the approving legal opinion of Roberts & Shefelman,
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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 completeness or accuracy of
any official statement , offering circular or other sales
material issued or used in connection with the Notes, and bond
counsel ' s opinion shall so state . The City ty Council finds that
the interest rate and price of the Notes is in the best
interest of the City and, deeming that it is in the best '
Interest of the City that such offer be accepted, accepts the
same . The Notes shall, therefore, immediately upon their
execution, be delivered to the purchaser in Seattle,
Washington, upon payment therefor in accordance with such
offer .
SECTION IX. This ordinance shall be effective upon its
passage, approval and five days after publication.
PASSED BY THE CITY COUNCIL this 11th day of June, 1984 .
Maxine E . Motor, City Clerk
APPROVED BY THE MAYOR this 11th day of June, 1984 .
iax6wt CU • Sl�kLYL P oc.K
Barbara Y. S inpoch, Mayor
Approved as to form:
AAJI� h C-4�
Lawrence J . Warren, City Attorney
Date of Publication: June 15, 1984
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