Loading...
HomeMy WebLinkAboutORD 3404 AMENDS CITY OF RENTON, WASHINGTON ORDINANCE NO. 3404 AN ORDINANCE of the City of Renton, Washington, relating to contracting an indebtedness and amending Ordinance No. 3399 providing for the issuance and sale of $6,000,000 par value of "Unlimited Tax General. Obligation Park Bonds, 1980, Series A" of the City. WHEREAS, by Ordinance No. 3399 passed February 4, 1980, the City of Renton, Washington (hereinafter called the "City" ) pro- vided for the issuance and sale of $6,000, 000 par value of "Unlimited Tax General Obligation Park Bonds, 1980, Series A, " which ordinance provided that rids for the purchase of such bonds would be received by the City Finance Director on March 18, 1980, and further specified the maximum effective interest rate which the bonds may bear to be 8% per annum; and WHEREAS, due to present conditions existing in the municipal bond market it is anticipated that the City will be unable to receive bids for the purchase of such bonds on March 18, 1980, with the maximum effective interest rate limitation of 8% per annum and the City has determined that such maximum effective rate of interest should be raised and a new sale date fixed for the receipt of bids for such bonds; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO ORDAIN, as follows: Section 1. Section 1 of Ordinance No. 3399 is amended to read as follows: JIM1 l t Section 1. The City of Renton, Washington (hereinafter called the "City" ) , shall presently issue and sell $6,000,000 par value of negotiable general obligation bonds of the total $7, 825,000 p g par value of negotiable general obligation bonds authorized by the auualified voters of the City at a special election held on September 18, 1979, pursuant to Ordinance No. 3336 passed and approved July 23, 1979, as amended by Ordinance No. 3343 passed and approved August 6, 1979, and Ordinance No. 3350 passed and approved August 20, 1979, for the purpose of constructing recreational facilities including boat launch, fishing pier, trails, day moorage, parking, floating structures, and other equipment and materials incident thereto at the Gene Coulon Memorial Beach Park. The bonds shall be designated "Un- limited Tax General Obligation Park Bonds, 1980, Series A" (the "Bonds" ) of the City; shall be dated May 1, 1980; shall be in denominations of $5, 000 each; shall be numbered from 1 to 1200, inclusive; and shall bear interest at an effective rate of not to exceed 12% per annum payable on May 1, 1981, and semiannually thereafter on each succeeding November 1 and May 1, as evidenced by coupons to be attached to the Bonds representing interest to maturity and with full obligation on the part of the City to pay interest at the bond rate from and after maturity until the Bonds, both principal and interest, are paid in full or until sufficient money for such payment in full is on deposit in the "Unlimited Tax General Obligation Park Bond Fund, 1980" (the "Bond Fund" ) , hereinafter created and the Bonds have been duly called for payment. Both principal of and interest on the Bonds shall be paid 2.. y in lawful money of the United States of America which at the time of payment shall be legal tender for the payment of public and private debts, at the office of the City Finance Director, or, at the option of the holder, at either fiscal agency of the State of Washington in Seattle, Washington, or New York, New York. The Bonds shall mature serially, annually, in order of their numbers in the following amounts on May 1 of each of the following years (such maturity schedule being computed at an assumed interest rate of 8 .50% per annum) : Bond Numbers Maturity (Inclusive) Amounts Years 1 to 29 $145,000 1982 30 to 59 150,000 1983 60 to 91 160,000 1984 92 to 126 175,000 1985 127 to 164 190,000 1986 165 to 205 205,000 1987 206 to 250 225, 000 1988 251 to 299 245,000 1989 300 to 352 265, 000 1990 353 to 409 285,000 1991 410 to 471 310, 000 1992 472 to 538 335,000 1993 539 to 611 365, 000 1994 612 to 690 395,000 1995 691 to 776 430,000 1996 777 to 869 465,000 1997 870 to 971 510,000 1998 972 to 1081 550,000 1999 1082 to 1200 595, 000 2000 -3- '+sF yYiAi'2�f'ar�t S ki LI i I I I i i 1 The City reserves the right to redeem any or all of the Bonds prior to their stated maturity dates as a whole, or in part in inverse numerical order, on May 1, 1990, or on any semiannual interest payment date thereafter at par plus accrued interest to date of redemption Notice of such intended redemption shall be published. in the official newspaper of the City, or if there is no official newspaper, then in a newspaper of general circulation in King County, at least once not less than 30 nor more than 45 days prior to the call date, and a copy of such notice shall be mailed within the same period to the main office of the principal underwriter or account manager of the successful bidder for the Bonds, or its successor. In addition, such redemption notice shall also be sent to Moody' s Investors Service, Inc. , and Standard & Poor' s Corporation, at their offices in New York, New York, but the mailing of such notice to such New York corporations shall not be a condition precedent to the redemption of such Bonds. Interest on any Bonds so called for redemption shall cease on such call date upon payment of the redemption price into the Bond Fund. Section 2 . Section 6 of Ordinance No. 3399 is amended to read as follows: Section 6. The Bonds shall be sold for cash at public sale for not less than par, plus accrued interest. The City Clerk is hereby authorized to give notice calling for bids to purchase the Bonds by publishing the same once a week for four consecutive weeks in the official newspaper of the City, or if there is no official newspaper, then in a newspaper of general circula- tion in King County, and a short abbreviated form of such notice shall -4- j i i i also be published once in The Seattle Daily Journal of Commerce and Northwest Construction Record of Seattle, Washington, at least ten days prior to the sale date. Such notice shall specify that sealed bids for he purchase of the Bonds shall be received b the Cit �. o t a p Y Y Finance Director in her office in the City Hall on April 15, 1980, up to 11: 00 a.m. , local time, at which time all bids will be opened and will be considered and award made by the City Council at a con- tinued regular meeting to be held in the City Council Chambers commencing immediately after the opening of all such bids. A copy of the notice shall, at least three weeks prior to the date fixed for the sale, be mailed to the State Finance Committee, Olympia, Washington. Bids shall be invited for the purchase of the Bonds with fixed maturities in accordance with the schedule specified in Section 1 hereof. The notice shall specify the maximum effective rate of interest the Bonds shall bear, namely, 12% perannum, and shall require bidders to submit a bid specifying: (a) The lowest rate or rates of interest and premium, if any, above par at which the bidder will purchase the Bonds; or (b) The lowest rate or rates of interest at which the bidder will purchase the Bonds at par. No bid will be considered for the Bonds for less than par and accrued interest. The purchaser must pay accrued interest to date of delivery of the Bonds. -5- I 1 - Coupon rates shall be in multiples of 1/8th or 1/10th of 1%, or both. No more than one rate of interest may be fixed for any one maturity. Only one coupon will be attached to each of the Bonds for each installment of interest thereon, and bids providing for additional or supplemental coupons will be rejected. The maxi- mum differential between the lowest and highest coupon rates named in any bid shall not exceed 2%. For the purpose of comparing the bids only, the coupon rates 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 Council to reject any and all bids and to readvertise the Bonds for sale in the manner provided by law, 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, except the bid of the State of Washington, if one is received, shall be accompanied by a deposit of $300,000. The deposit shall be either by certified check or cashier' s check made payable to the City Finance Director and shall be promptly returned if the bid 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 t i 1 I i E 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 makingthe next best bid. If there be two ore more equal bids for not less than par plus accrued interest and such bids are the best bads received, the City Council shall determine by lot which bid shall be accepted. The Bonds will be delivered to the successful bidder at the office of the City Finance Director or in Seattle, Washington, at the City' s expense, or at such other place as the City Finance Director and the successful bidder may mutually agree upon at the purchaser's expense. A no-litigation certi- ficate in the usual form will be included in the closing papers. 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 such bid will not be read or con- sidered. If, prior to the delivery of the Bonds, the income receivable by the holders 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 obligation 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 signed and will furnish the approving legal opinion of Messrs. Roberts, Shefelman, Lawrence, Gay & Moch, municipal bond counsel of Seattle, Washington, covering the Bonds without cost to the purchaser, the opinion also _7_ Al r 1 I 3 being printed on each bond. 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 shall also provide that further informa- tion regarding the details of the Bonds may be received upon request made to the City Clerk or to Seattle-Northwest Securities Corporation, 500 Union Street, Seattle, Washington, the City' s financial consultant. Section 3. This ordinance shall take effect from and after its passage and five (5) days following its publication as required by law. PASSED by the City Council of the City of Renton, Washington, at a regular open public meeting thereof, this 3rd day of March, 1980. DELORES A. MEAD,tCity Clerk APPROVED by the ,Mayor this 3rd day of March, 1980. BARBARA Y. S Z OCK, `Mayor FORM APPROVED: City Attorney -- Date of Publication March 12, 1980 I M" : N.,v tifyryF P r r i i I 1, DELORES A. MEAD, City Clerk of the City of Renton, Washington, hereby certify that the attached copy of Ordinance No. is a true and correct .copy of the original ordinance passed on the 3rd day of March, 1980, as such ordinance appears on the Minute Book of the City. DATED this �4 77), day of March, 1980. DELORES A. MEAD, C • ty Clerk .;;g�T s F f r i e i 1 I'