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HomeMy WebLinkAboutORD 3613 f CITY OF RENTON, WASHINGTON ORDINANCE NO. 3613 AN ORDINANCE of the City of Renton, Washington, relating to contracting indebtedness; providing for the issuance, specifying the maturities, maximum effective interest rate, terms and covenants of . $1 ,825, 000 par value of "General Obligation Park Bonds, 1982 , " authorized by the qualified voters of the City at a special election held therein pursuant to Ordinance No. 3336 , as amended; establishing a bond redemption fund; providing for the sale of such bonds ; and amending Section III of Ordinance No. 3336 , as amended by Section I of Ordinance No. 3350 . THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO ORDAIN as follows: Section 1 . The City of Renton, Washington ( the "City" ) , shall presently issue and sell the remaining unissued $1 ,825, 000 par value of negotiable general obligation bonds of the total $7 ,825 ,000 par value of negotiable general obligation bonds author- ! ize.d`.rbv the qualified voters of the City at a special election held S`ep-t.ember 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 A.ugu:st 20 , 1979 , $6 ,000 ,000 of such bonds having been issued under date of May 1 , 1980 , pursuant to Ordinance No. 3399 , as amended by rdirnanc,e,,;No. 3404 , for the purpose of completing the construction of recreational facilities including boat launch , fishing pier, trails , day moorage, parking , floating structures, and other equipment and materials incidental thereto, at the Gene Coulon - 1 - Memorial Beach Park. The bonds shall be designated "General Obligation Park Bonds, 1982" (the "Bonds" ) , of the City; shall be dated April 1, 1982; shall be in the denomination of $5,000 each; shall be numbered from 1 to 365, inclusive; and shall bear interest at the rate or rates specified in the winning bid for the Bonds, but not in excess of an effective rate of 16% per annum, payable on April 1, 1983, and semiannually thereafter on each succeeding October 1 and April 1 , as evidenced by coupons to be attached to the Bonds representing interest to maturity. If any Bond is not redeemed when duly presented at its maturity or call date thereof, the City shall be obligated to pay interest at the coupon rate for each such Bond from and after the maturity or call date until such Bond, both principal and interest, shall have been paid in full or until sufficient money for such payment in full is on deposit in the "General Obligation Park Bond Fund, 1982" (the "Bond Fund" ) , hereinafter created, and such Bond has been duly called for payment. Both principal of and interest on the Bonds are to be paid 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 `onds shall mature serially, annually, in order of their numbers in the following amounts on April of each of the following years (such maturity schedule being computed at an assumed interest rate of 13.20% per annum) : 2 - i Bond Numbers Maturity ( Inclusive) Amounts Years 1 to" 5 $ 25,000 1984 6-to 11 30,000 1985 12 to 18 35,000 1986 19 to 25 35,000 1987 26 to 33 40,000 1988 34 to 42 45,000 1989 43 to 53 55,000 1990 54 to 65 60,000 1991 66 to 79 70,000 1992 80 to 94 75,000 1993 95 to 111 85,000 1994 112 to 131 100,000 1995 132 to 153 110 ,000 1996 154 to 178 125,000 1997 179 to 207 145,000 1998 208 to 239 160,000 1999 240 to 276 185,000 2000 277 to 318 210 ,000 2001 319 to 365 235,000 2002 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 April 1, 1992, or any semiannual interest payment date thereafter at the following percentages of par if called on the following dates, plus accrued interest to date redemption: Call Dates Call Prices On April 1 , 1992, or October 1 , 1992 101% On April 1, 1993, or October 1, 1993 100. 5% On April 1, 1994, and thereafter 100% (par) Notice of such intended redemption shall be published in thy-,.offficial newspaper of the City, or if there is no official newspaper, then in a newspaper of general circulation in the City, 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 3 - 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 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 firms 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 . The City further reserves the right to purchase any or all of the Bonds in the open market at any time at a price not in excess of the redemption price on the next call date after such purchase plus accrued interest to date of purchase. Section 2 . The City irrevocably pledges itself to levy taxes annually, without limitation as to rate or amount, on all property in the City subject to taxation in an amount sufficient, together with other money legally available and to be used therefor, to pay the principal of and interest on the Bonds as the same shall become due, except that if the City Council so directs or is so ordered by a court having jurisdiction over the City on this matter, the interest on the Bonds in excess of the effective rate of 8% per annum shall be paid from the regular property taxes and other money collected by the City without a vote of the electors, and in such event the City Council pledges that it will budget. sufficient money annually to pay that interest obligation. The full faith, credit and resources of the City are hereby irrevocably 4 - _ S _ 03 pue aoueuTpjo sTg3 3o T u0T33ag uT paT3Toads sasodand aq; jog pasn pue „puna uoT3onj3suoz) xjed goeag TeTjowaW uolnoo auaD„ aq3 03UT pTed aq Tlegs spuog aq3 30 AJ anTTap pue ales ag3 woj3 pantaoaa ' Cue 3T 'wnTwajd pue spaaoojd ledTJUTjd aqy •AgTo aq3 30 „puna :t uoT33na;suoD XJed goeag TeTjowaW uolnoD auao„ aq3 se pa3eu6Tsap pue uMoux puna leToads e jo33ajTQ aoueuTa A3TD aq3 3o aoT33o a43 UT pagsTTgeqsa pue pageajo uaaq seq ajag3 ' V0V£ *ON aoueUTpjp Aq papuawe se '66££ *ON aoueuTpjp Ag * puna puog aq3 o3uT pTed aq TTegs spuog aq3 30 AjanTTap pue ales aq3 uodn ' Aue 3T ' panTaoaj 3sajaquT panjooe aqy •aogoajTu aoueuTa A3TD aq3 3o aoT33o aq3 UT pagsTlge3sa pue pa3eajo si puna puog aqs • S uoj339s •xjalD A4TD aq3 pue joAeW aq3 3o saan3eubts aTTwTs3e3 aq3 aeaq llegs suodnoo aq3 pue 'uoajag3 paquTad aq llegs A3TD aq3 30 leas aq; 3o uoT3onpoadaj aTTwTs3e3 a pue xjalD A3TD aq3 3o ajn3 -eubTs Tenuew aq3 Aq pa3sa33e pue joAeW aq; 3o ajn3eubTs aTTwTs3e3 aq3 Aq pau6Ts aq Tlegs spuog aqy •aoueuTpjo sTg3 30 suoTsTnojd aq; g3TM 3uagSTsuoo wjo3 a UT jaded puoq poo6 uo pagdej6og3TT ao paquiad aq Tlegs suodnoo pue spuog aqy • V u0133as •japunajag3 pa3ebinwoad suoT3eln6aj a eot dde pue a uawe se ' o a o anuana Tq . l P P P X561 3 P � 2i Teuja3uI sa3e3s Pa3Tun aq3 30 (0)COT uoT309g 30 6uTueaw ay3 uTggjM spuoq a6ej3Tgae aq o3 spuog aq3 asneo TlTM g3l4m spuog aq3 3o wja3 a43 6UTjnp awT3 Aue 3e Aauow 3ag3o s3T 3o Io spuog aq3 3o spaaooad aq3 30 asn ou axew TlTm 3T 3eg3 squeuanoo A3T:) aqy • £ UOT300s •spuog Bons uo 3saja;UT pue 30 ledtouTjd aq3 30 3uawAed aq; jo3 pa6paTd pay the costs of issuance and sale of the Bonds. Pending the expenditure of such principal proceeds, the City may temporarily invest such proceeds in any legal investment and the investment earnings may be retained in the "Gene Coulon Memorial Beach Park Fund" and expended for the purposes of such fund. All taxes collected for and other money allocated to the payment of the r principal of and interest on the Bonds shall be deposited in the Bond Fund . Pending the receipt of the proceeds from the issuance of the Bonds , interest-bearing warrants may be drawn on the "Gene Coulon Memorial Beach Park Construction Fund" to provide interim funds to pay such costs , such loan to be repaid from the proceeds received from the issuance of the Bonds. The interest on such warrants may be fixed by the City Finance Director at a rate or rates not in excess of 16% per annum. 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 Y general circulation in the City and a short abbreviated form of such notice shall 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 the purchase of the Bonds shall be received by the City Clerk in her office in the City Hall on 6 - March 22, 1982 , up to 11 :00 a.m. , local time, at which time all bids will be publicly opened and read and an award made by the City Council at its regular meeting to be held in the City Council Chambers commencing at 8 :00 , p.m. , local time, on the same date. A copy of the notice shall be mailed to the State Finance Committee, Olympia, Washington, at least three weeks prior to the date fixed for the sale. 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, 16% per annum, 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. Coupon rates shall be in multiples of 1/8th or 1/20th of 1% , or both. No more than one rate of interest may be fixed for anyyGne.. 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 7 - 4 maximum 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 consid- ered . 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 $91 , 250 . The deposit shall be either by certified check or cashier' s check made payable to the City Finance Director and shall be returned promptly 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 within forty days following the acceptance of „ isbid , 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 be two or more equal bids for not less than par plus accrued interest and such bids are the best bids 8 - 4 received , the City Council shall determine by lot which bid shall be accepted . The Bonds will be delivered to the successful bidder I upon payment of the purchase price plus accrued interest to the i date of delivery, less the amount of the good faith deposit, at the office of the City Clerk or in Seattle, Washingtonj, at the City' s i expense , or at such other place as the City Clerk and the success- ful bidder may mutually agree upon at the purchaser' s expense. i 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. I 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 con- stitute cause for a failure or refusal by the purchaser thereof to accept delivery of and pay for the Bonds in accordance with the i terms of the purchase contract. All expenses in relation to the printing of CUSIP numbers on the Bonds shall be paid by the City; .I but the fee of the CUSIP Service Bureau for the assignment of those numbers shall be the responsibility of and shall be paid for by the purchaser. j Any bid presented after the time specified for the re- ceipt of bids will not be received , and any bid not accompanied by I the required bid deposit at the time of opening will not be read or considered. I If, prior to the delivery of the Bonds, the interest receivable by the holders thereof shall become taxable, directly 9 - I 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 (Roberts, Shefelman, Lawrence, Gay & Moch) , bond c�unsel of Seattle, Washington, covering the Bonds without cost to the purchaser, the opinion also being printed on each bond . Bond counsel shall not be required to review or express any opinion concerning the complete- ness or accuracy of any official statement, offeri?g 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 information regarding the details of the Bonds may be received upon request made to the City Cler) or to Seattle- Northwest Securities Corporation, 3700 Seafirst Fifth Avenue Plaza, Seattle, Washington, the City' s financial consultant. Section 7 . Section III of Ordinance No. 3336 passed and approved July 23 , 1979 , as amended by Section I of Ordinance No. 3350 passed and approved on August 20 , 1979 , is amended to read as follows: ,,. Section III . The general obligation bonds herein author- ized to be issued shall be serial in form and shal�i bear interest which except for the first interest coupon shall be payable semi- annually , and shall mature in from two to not more than twenty - 10 - 5 years from date of issue, the life of the improvements to be acquired by such bonds being at least twenty years, in such amounts as nearly as practicably annually as will result in a difference of not more than $5 ,000 .00 between the highest and lowest annual payment of principal and interest, excluding the first two years from date of issue, computed on such anticipated effective interest rate as the City Council of the City shall in its discretion determine will be borne by such bonds and shall be paid by annual tax levies sufficient in amount to pay both principal and interest when due, which annual tax levy shall be made without limitation as to rate or amount, and the bonds shall so provide. The bonds shall be redeemable at the option of the City at such times as shall be hereafter determined by ordinance. The date of issue, interest rate or rates, maturities, form and covenants of such bonds shall be hereafter fixed by ordinance of the City Council of the City, and the bonds shall be issued and sold when the proceeds thereof may be required . Section 8 . All actions heretofore taken by the City, its officers or employees, consistent with the provisions of this ordinance are ratified , approved and confirmed. Section 9 . This ordinance shall take effect from and after its passage and five ( 5) days following its publication as required by law. i PASSED by the City Council of the City of Renton, Washington, at a regular open public meeting thereof, this 22nd day of February , 1982 . DELORES A. MEAD; City Clerk APPROVED by the Mayor this 22nd day of February , 1982 . Barbara Y. Shi poclhMayor FORM APPROVED: City Attorney Publication dates : February 25, '1982 12 -