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Home My WebLink AboutORD 4221 � � • . CITY OF RENTON, WASHINGTON ORDINANCE NO. 4221 AN ORDINANCE of the City of Renton, Washington, relating to Local Improvement District No . 329 ; authorizing the issuance and sale of local improve- ment district bond anticipation notes in Local Improvement District No . 329 pending the receipt of ' the proceeds of the local improvement district bonds authorized to be issued by Ordinance No . 3856 , as amended; and providing for the sale and delivery of those notes to U. S . Bank of Washington, National Association, Seattle, Washington. WHEREAS, by Ordinance No . 3856 passed by the City Council October 22 , 1984 , as amended by Ordinance No . 4074 passed by the City Council on June 15, 1987 , the City ordered the construction and installation of certain improvements on S . 43rd Street from Talbot Road South to SR 167, within the City pursuant to Resolu- tion No . 2566, and, after a public hearing thereon, established Local Improvement District No . 329 (the "District" ) and provided for the issuance and sale of local improvement district warrants or other short-term obligations pursuant to Chapter 39 . 50 RCW; and WHEREAS, by Ordinance No . 4158 the City authorized and provided for the issuance and sale of its Local Improvement District No . 329 Bond Anticipation Note in the principal amount of $600 , 000 , dated June 1 , 1988 , and maturing June 1 , 1989 (the "Outstanding Note" ) , to pay part of the cost of paying and redeeming the City' s outstanding Local Improvement District No . 329 Bond Anticipation Note dated June 26, 1987 , issued to pay part of the cost of constructing the improvements in the r ORDINANCE N0. 4221 District pending the receipt of the proceeds of the issuance and sale of the bonds authorized by Ordinance No . 3856, as amended; and WHEREAS, U. S . Bank of Washington, National Association, holder of the Outstanding Note, has agreed to extend the matur- ity date of the Outstanding Note to June 30 , 1989; and WHEREAS, due to delays incurred in constructing the improvements in the District, 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 part of the funds with which to pay the cost of paying, both principal and interest, and redeeming the Outstanding Note on June 30 , 1989 , and U. S . Bank of Washington, National Associa- tion, has offered to purchase those notes as a single note under the terms and conditions hereinafter set forth; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO ORDAIN AS FOLLOWS : SECTION I . A local improvement district bond anticipation note of the District (the "Note" ) shall be issued in the princi- pal amount of $600 , 000 to pay part of the cost of paying, both principal and interest, and redeeming the Outstanding Note . The Note shall be numbered R-1 ; shall be in fully registered form; shall be dated June 30 , 1989; shall mature on June 30 , 1991 ; and shall bear interest at a rate equal to 80% of the published - 2 - ORDINANCE N0. 4221 prime rate of Bank of America, San Francisco, California, adjusted immediately for any changes in that prime rate, calcu- lated on the basis of a 365-day year , payable monthly on the fifth day of each month, commencing the month following the date of issuance of the Note, with full obligation on the part of the City to pay interest at the same variable rate from and after the maturity date of the Note until the Note with interest is paid in full or until sufficient money for that payment in full is on deposit in the Local Improvement Fund, District No . 329 (the "Note Fund" ) , created by Ordinance No . 3856, as amended, and the Note has been duly called for payment . The Note shall be non-transferrable . The City reserves the right to prepay the Note at any time on giving five days ' written notice to U. S . Bank of Washington, National Association, Both principal of and interest on the Note shall be payable solely out of the Note Fund from the proceeds of local improvement district bonds authorized to be issued by Ordinance No . 3856, as amended, or other short-term obligations to be deposited in that fund and/or prepaid special benefit assessments deposited in that fund, and from the Local Improvement Guaranty Fund of the City, except that interest on the Note may be paid from proceeds of the Note or investment earnings therefrom, 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, who is appointed Note Registrar, in Renton, Washington, on surrender of the Note, and interest is payable by check, draft or warrant of - 3 - ORDINANCE NO. 4221 the Note Registrar mailed at least one business day prior to each interest payment date to U. S . Bank of Washington, National Association, at its office in Seattle, Washington. The City Council declares and finds that the fixing of the above variable interest rate index is in the best interests of the City. SECTION II . The Note shall be issued only in registered form as to both principal and interest and recorded on books or records maintained by the Note Registrar (the "Note Register" ) . The Note Register shall contain the name and mailing address of the owner of the Note. 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 Finance Director, and shall have the seal of the City impressed thereon. Only a Note bearing a Certificate of Authentication in the following form, manually signed 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 the fully registered City of Renton, Washington, Local Improvement District No . 329 Bond Anticipation Note described in the Note Ordinance . City Finance Director , Note Registrar - 4 - ORDINANCE N0. 4221 The authorized signing of a Certificate of Authentication shall be conclusive evidence that the Note so authenticated has been duly executed, authenticated and delivered and is entitled to the bene£its of this ordinance. SECTION IV. The Note Registrar shal]� keep, or cause to be kept, sufficient books for the registration of the Note which shall at all times be open to inspection by the City. The Note Registrar is authorized, on behalf of the City, to serve as the City' s paying agent for the Note and to carry out all of the Note Registrar ' s powers and duties under this ordinance and City Ordinance No . 3755 establishing a system of registration for the City' s bonds and obligations , The Note Registrar shall furnish the City a Certificate of Destruction 30 days after the surren- der and cancellation of the Note. The Note Registrar shall be responsible for its representa- tions contained in the Note Registrar ' s Certificate of Authenti- cation on the Notes . SECTION V. The City covenants that it will take all actions necessary to prevent 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 treated as proceeds of the Note at any time during the term of the Note which will cause interest on the Note to be included in gross income for federal income tax purposes . The City certifies that it has not been notified of any listing or proposed listing by - 5 - ORDINANCE N0. 4221 the Internal Revenue Service to the effect that it is a bond issuer whose arbitrage certifications may not be relied upon. SECTION VI . The City finds and declares that (a) the Note is being issued for the purpose of effecting a current refunding of the Outstanding Note, which had an average maturity of less than three years; (b) the face amount of the Note does not exceed $5, 000 , 000 , and also does not exceed the outstanding principal amount of the Outstanding Note; (c) the Outstanding Note was issued for the purpose of currently refunding the City' s outstanding Local Improvement District No . 329 Bond Anticipation Note dated June 26, 1987, which met the qualifica- tions for exemption from arbitrage rebate requirements in Section 148(f) (4) (C) of the Internal Revenue Code of 1986 , as amended (the "Code" ) , and the Outstanding Note was not subject to arbitrage rebate requirements; (d) the Note has a final maturity date which is not more than thirty years from the date of issue of the Outstanding Note; and (e) the Outstanding Note was designated as a qualified tax-exempt obligation when issued in 1988 . Therefore, ( 1) the Note is treated as a qualified tax-exempt obligation for the purposes of Section 265(b) (3) of the Code and is not to be taken into account for the purpose of determining the amount of other tax-exempt obligations that may be issued by the City as qualified tax-exempt obligations during the calendar year 1989; and (2) the Note is not subject to arbitrage rebate requirements and is not to be taken into account for the purpose of determining the eligibility of other - 6 - ORDINANCE N0. 4221 tax-exempt obligations of the City for the arbitrage rebate exemption under Section 148(f) (4) (C) of the Code during the calendar year 1989 . SECTION VII . The Note shall be a negotiable instrument to the extent provided by RCW 62A. 8-102 and 62A. 8-105 . SECTION VIII . U. S . Bank of Washington, National Associa- tion, 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 Foster Pepper & 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 completeness or accuracy of any official statement, offering circular 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, therefore, immediately upon its execution and authentication, shall be delivered to the purchaser in Seattle, Washington, on payment therefor in accordance with that offer . SECTION IX. All actions heretofore taken by the City and its officers consistent with the provisions of this ordinance are ratified and confirmed. - 7 - ORDIN.ANCE NO. 4221 SECTION X. This ordinance shall be effective upon its passage, approval and five days after publica�ion. PASSED BY THE CITY COUNCIL this 19th day of June, �.989 . �'��,.�.�'��`��a�� Maxine E. Mqtor, City Clerk APPROVED BY THE MAY4R thi --� th day of June, 1989 . ; � �� f ' ��^� Ear l Cl~ymer, Ma�� Approved as to farm: `� � �� Date of Publication: June 23, 1989 2518r - 8 -