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HomeMy WebLinkAboutORD 3995Amends Ordinance No. 3986 CITY OF RENTON, WASHINGTON ORDINANCE NO. 3995 AN ORDINANCE of the City of Renton, Washington, amending Ordinance No. 3986. Section 1. Section 12 of Ordinance No. 3986 is amended to read as follows: Section 12. The Bonds shall be sold for cash at public sale for not less than $98 per $100 par value, plus accrued interest to the date of delivery of and payment for the Bonds. The City Finance Director is authorized and directed to give notice calling for bids to purchase the Bonds and shall publish a short abbreviated form of such notice once in the Daily Journal of Commerce. Such notice shall specify that sealed bids for the purchase of the Bonds shall be received by the City Finance Director at his office; City Hall, 200 Mill Avenue South, Renton, Washington, on such date and at such hour as the City Finance Director shall determine, at which time all bids will be publicly opened and read and an award made by City Council at its next regular meeting in the Council Chambers of the City Hall. Bids shall be invited for the purchase of the Bonds with fixed maturities in accordance with the schedule specified in Section 3. The notice shall specify the maximum net effective rate of interest the Bonds shall bear, namely, 10% per annum, and shall ORDINANCE NO. 399,5 require each bidder to submit a bid specifying the lowest rate of interest and discount, if any, at which the bidder will purchase the Bonds. No bid will be considered for the Bonds for less than $98 per each $100 par value plus accrued interest or for less than the entire issue. The purchaser must pay accrued interest, if any, to the date of delivery of the Bonds. Interest rates shall be in multiples of 1/8 or 1/20 of 1%. No more than one rate of interest may be fixed for single maturity. The maximum differential between the lowest and highest interest rates named in any bid.shall not exceed 3%. For the purpose of comparing the bids only, the lowest net interest cost 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 Finance Director to reject any and all bids and to readvertise the Bonds for public sale or to negotiate for the private sale of the Bonds, and no bid for less than all of the Bonds shall be considered. The City further reserves the right to waive any irregularity in any bid or in the bidding process. All bids shall be sealed and shall be accompanied by a deposit of $250,000. Each deposit shall be by either cash or certified or cashier's check made payable to the City Finance Director and shall be returned promptly if the accompanying bid - 2 - ORDINANCE NO. 3995 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 its bid, 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 are two or more equal bids for not less than the maximum discount plus accrued interest and such bids are the best bids received, the City Council shall determine by lot which bid shall be accepted. The Bonds will be delivered to the successful bidder upon payment of the purchase price plus accrued interest to the date of delivery, less the amount of the good faith.deposit, in Seattle, Washington, at the City's expense, or at such other place upon which the City Finance Director and the successful bidder may mutually agree at the purchaser's expense. 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. 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 constitute cause for a failure or refusal by the purchaser - 3 - ORDINANCE NO. 3995 thereof to accept delivery of and pay for the Bonds in accord- ance with the terms of the purchase contract. All expenses in relation to the printing of CUSIP numbers on the Bonds shall be paid by the City; but the fee of the CUSIP Service Bureau for the assignment of those numbers shall be the responsibility of and shall be paid by the purchaser. Any bid presented after the time specified for the receipt of bids will not be received, and any bid not accompanied by the required bid deposit at the time of opening will not be read or considered. If, prior to the delivery of the Bonds, the interest receivable by the owners thereof shall become taxable, directly * or indirectly, by the terms of any federal income tax law, the successful bidder may at its option be relieved of its obliga- tion 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 executed and will furnish the approving legal opinion of Roberts & Shefelman, bond counsel of Seattle, Washington, covering the Bonds without cost to the purchaser. 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 Bonds, and bond counsel's opinion shall so state. !Such notice also shall provide that further information regarding the details of the - 4 - ORDINANCE NO. 3995 Bonds may be received upon request made to the City Finance Director or to Seattle -Northwest Securities Corporation, the City's financial consultant. PASSED BY THE CITY COUNCIL this 19th day.of May, 1986. 4 • ,>� \ Maxine E. Motor, City Clerk APPROVED BY THE MAYOR this 19th day of May, 1986. Approved as to form: Barbara Y. Shinpoc , Mayor ROBERTS & SHEFELMAN - George M. Mack Date of Publication: May 23, 1986 5 -