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HomeMy WebLinkAboutORD 3817 CITY OF RENTON, WASHINGTON ORDINANCE NO. 3817 I 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 2 - 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 3 - 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 A P (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 - 4 - i . 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 5 - 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 6 - 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 . 7 - 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, 8 - 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 0772r - 9 - IIS