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Home My WebLink AboutORD 4158 . Y . - � � t . CITY OF RENTON, WASHINGTON ORDINANCE N0. 415� AN QRDINANCE of the City of Renton, Washington, relating ta Local Improvement District No. 329; autharizing the issuance and sale of local improve- ment distric� band anticipation notes in Local Improvement District Nq. 329 pending the receipt of the proceeds of the lo�al improvernent district bonds authorized to be issued by Ordinance No . 3856, as amended; and providing for the sale and delivery of those notes �o U.S. Bank of Washington, National Association, Seattle, Washington. WHEREAS, by �rdinance No. 3856 passed by the Cit� Council Qctober 22, 1984 , as amended by Ordinance No . 4Q74 passed by the City Council on June 15, 1987, the City ordered the construction and installation of certain improvements on S. 43rd Stree� fram Talbat Road South to SR 157, within the City pursuant ta Resalution No. 2565, and, after a public hearing thereon, estab- lished Local Improvement District No . 329 (the "District") and provided for the issuance and sale of local improvement district warrants ar other short-term obligatians pursuant ta Chapter 39 . 5Q RCW; and WHEREAS, by Ordinance No. 4074 the City authorized and provided for the issuance and sale of its Local Improvement District No . 329 Bond Anticipatian Note in the principal amount of $600, 000, dated June 26, 1987, and rnaturing June l, 1988 (the "Outstanding Note" ) , to pay part of the cost of constructing the improvements in the District pending the receipt af the proceeds of the issuanee and sale of the bonds authorized by Ordinance Na . 3856 , as amended; and i ' � � ORDINANCE N0. 4158 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 1, 1988, and U.S. Bank of Washington, National Association, 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 prin- cipal 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 l; shall be dated June l, 1988; shall mature on June 1, 1989 ; and shall bear interest at a rate equal to 70% of the published prime rate of Bank of America, San Francisco, California, adjusted immediately for any changes in that prime rate, calculated 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 - 2 - � . _ ORDINANCE NO. 4158 � the Nate with interest is paid in full or until sufficient maney far such 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 Nate has been duly called far pagment . The City reserves the right to prepay the Note at any time on giving five days ' written notice to U.S. Natianal Bank of Washington, National Association. Both principal af and interest on the Note shall be payable solely out of the Nate Fund from the groceeds of local improvement district bonds authorized to be issued by Ordinance No. 3856, as amended, or other short-term obligations ta be deposited in that fund and/or prepaid special benefit assessments deposited in that fund, and fram the Local Improvement Guaranty Fund of the City, except tha� interest on the Nate may be paid from praceeds of the Note or investment earnings there£ram, and shall be payable in lawful maney of the United States of America . Principal of �he Note is payable at the affice af the City Finance Directar in Rentan, Washington, on surrender a� the Note, and interes� is payable by check, draft or warrant mailed at least one business day prior to each interest payment date to U. S. National Bank of Washington, National Associa�ian, at its office in 5eattle, Washington. The City Council declares and finds that the fixing of the above variable interest rate index is in the best interests af the City. - 3 - ORDINANCE N0. 4158 � SECTION II . 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. SECTION III . 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 also covenants that if all gross proceeds of the Bonds have not been spent within six months after the date of issuance of the Bonds , it will calculate, or cause to be calculated, and rebate to the United States all earnings from the investment of gross proceeds of the Note that are in excess of the amount that would have been earned had the yield on those investments been equal to the yield on the Note, plus all income derived from those excess earnings , to the extent and in the manner required by Section 148 of the United States Internal Revenue Code of 1986 , as amended (the "Code" ) , and applicable regulations . If the City fails to meet rebate requirements applicable to the Note under Section 148 of the Code, the City covenants that , to the extent permitted by that Section, it will pay the penalty provided in - 4 - ORDINANCE P10. 415 8 5ubsection 148(f} (7) {C) if reguired ta prevent interest on the Note from being included in gross income for federal income tax purposes . The City certifies that it has not been notified of any listing or prapased listing by the Internal Revenue Serviee to the effect that it is a bond issuer wh4se arbitrage certifi- cations may nat be relied upon. SECTION IV. The City has determined and certifies that (a} the Note is nat a "private activity bond" within the rneaning of Section 141 of the Code; {b} the reasanably anticipated amount of tax-exempt obligations (other than private activity bonds) which the City and any entity subordinate to the City (including any entity which the City controls, which derives its autharity ta issue tax-exempt obligations from the City or which issues tax-exempt obligatzons on behalf of the Ci�y} will issue during the calendar year in which the Note is issued will not exceed $10, 000, 00p; and (c) the amount of tax-exempt abliga- tions, including the Nate, designated by the City as "qualified tax-exempt obligations'" for the purposes of Section 265(b} {3) of the Cade during the calendar year in which the Note is issued does no� exceed $10, 00d, 000 . The City designates the Note as a "qualified tax-exempt obligation" for the purposes of Section 265(b) (3) of the Code. SECTION V. The Note shall be a negotiable instrument to the extent pravided by RCW 62A. 8-102 and b2A. 8-105 . SECTIQN VI . U.S. Natianal Bank of Washington, National Association, af Seattle, Washington, has submitted an offer to _ S _ ORDTNANCE NO. 4158 purchase the Note at a price of par, the City to furnish the Note and the appraving legal apinion of Foster Pepper & Shefelman, municipal bond counsel af Seattle, Washington, at the Ci�y' s exgense. B�nd counsel shall not be required to review or express any opinian concerning the campleteness or accuracy o� any official statement, offering circular ar other sales material issued or used in connection wi�h the Note, and bond counsel ' s opinian shall so state. The City Council finds that it is in the best interest of the Ci�y that the offer be accepted and accepts the same. The No�e, therefore, immediately upon its execution, shall be delivered to the purchaser in Seattle, Washingtan, on payment therefor in accordance with that offer . SECTION VII . This ordinance shall be effective upon its passage, appraval and five days af�er publication. PASSED BY THE CITY C4UNCIL this 16th ��Y �f Ma�, 1988 . r��.�t�J��i�r.��G�L�'g-' Maxine E. Motor, City Clerk APPRQVED BY THE MAYOR this h day af May, 1988 . ��A��u�� Ea�C�ymer , M,�i�pr �' Approved as to form: �.._...) �� V� ��--4'.:.-��------ ,r - ,� Date of Pu`k�►icatian: May 19, 1988 I 8 7 7 r ^ � -