Loading...
HomeMy WebLinkAboutORD 3619 I CITY OF RENTON, WASHINGTON ORDINANCE NO. 3619 AN ORDINANCE of the City of Renton, Washington, relating to contracting indebtedness; providing for the issuance, specifying the maturities, maximum effective interest rate, termsland 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; amending Section III of Ordinance No. 3336, as amended by Section I of Ordinance No. 3350; and repealing Ordinance No. 3613. THE CITY COUNCIL OF THE CITY OF RENTON,I WASHINGTON, DO ORDAIN as follows: Section I . 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 ,f the total $7, 825,000 par value of negotiable general obligation bonds author- ized b the Y p Y qualified voters of the Cit at a special election held on September 18, 1979, pursuant to Ordinance No. i3336, 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, $6,000,000 of such bonds having been issued under date of May 1 , 1980, pursuant to Ordinance No. 33'99, as amended by Ordinance 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 l at the Gene Coulon - 1 - i i i i Memprial Beach Park. The bonds shall be designated "General Obligation Park Bonds, 1982" (the "Bonds" ) , of the City; shall be dated May 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 bidl for the Bonds, but not in excess of an effective rate of 16% per annum, payable on May 1, 1983, and semiannually thereafter on each succeeding i November 1 and May 1, as evidenced by coupons tobe attached to the Bonds representing interest to maturity. If any Bond is not redeemed upon proper presentment at its maturityior 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 thelBonds 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 I 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 I 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 assumedlinterest rate of 13. 20% per annum) : 2 i i I • I I Bond Numbers Maturity ( Inclusive) Amounts jYears 1 to 5 $ 25,000 11984 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 j 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 i 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 May 1, 1992, or aI ny semiannual interest payment date thereafter at the following percentages of r par if called on the following dates, plus accrued interest to date of redemption: Call Dates Call Prices On May 1, 1992, or November 1, 1992 101% On May 1, 1993, or November 1, 1993 100.5% On May 1 , 1994, and thereafter 100% (par) Notice of such intended redemption shall be published in j the official 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 i 3 I i i same period to the main office of the principal underwriter or account manager of the successful bidder for theiBonds, 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 failing of such notice to such New York firms shall not be a condition precedent to l 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 timeat a price not in excess of the redemption price on the next callidate after such purchase plus accrued interest to date of purchase. Section II. The City irrevocably pledges 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, and the full faith, credit and resources of the City are pledged irrevocably for the payment of the principal of and inter- est on such Bonds. Section III. The City covenants that it will spend the principal proceeds of the Bonds with due diligelnce to the completion of the purposes specified in this ordinance and' will make no use of the proceeds of the Bonds or of its other money at any time during the term of the Bonds which will cause the Bonds to be 4 - r arbitrage bonds within the meaning of Section 103(c) of the United States Internal Revenue Code of 1954, as amended!, and applicable regulations promulgated thereunder. Section IV. The Bonds and coupons shah! be printed or lithographed on good bond paper in a form consistent with the provisions of this ordinance. The Bonds shall be signed by the facsimile signature of the Mayor, attested by the manual signature of the City Clerk and a facsimile reproduction of the seal of the City shall be printed thereon, and the coupons shall bear the facsimile signatures of the Mayor and the City Clerk. Section V. The Bond Fund is created and established in the office of the City Finance Director. The accrued interest received, if any, upon the sale and delivery of the Bonds shall be paid into the Bond Fund. By Ordinance No. 3399!, as amended by Ordinance No. 3404, there has been created and ;established in the office of the City Finance Director a special flund known and designated as the "Gene Coulon Memorial Beach Park Construction Fund" of the City. The principal proceeds and premium, if any, received from the sale and delivery of the Bonds shall be paid into I the "Gene Coulon Memorial Beach Park Construction Fund" and used for the purposes specified in Section 1 of this ordinance and to 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 I Fund" and expended for the purposes of such fund. All taxes 5 _ I I collected for and other money allocated to the p�yment of the principal of and interest on the Bonds shall be deposited in the I Bond Fund. Pending the receipt of the proceeds from the issuance of the Bonds, interest-bearing warrants may be dlrawn on the "Gene Coulon Memorial Beach Park Construction Fund" tolprovide 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 I rates not in excess of 16% per annum. i Section VI . The Bonds shall be sold for cash at public sale for not less than par, plus accrued interest. The City Clerk is authorized to give notice calling for bids to purchase the Bonds by publishing such notice as required by w law, and a short abbreviated form of such notice shall also be published once in The Seattle Daily Journal of Commerce and i 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 May 3, 1982, up to 11: 00 a.m. , local time, at which time all bids will be publicly opened I 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. Bids shall be invited for the purchase of the Bonds with fixed maturities in accordance with the schedule specified in Section I hereof. l I 6 l I i 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 I (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 Bondi 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 1/8 or 1/20 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 reI jected. The maximum differential between the lowest and highest coupon rates I named in any bid shall not exceed 3%. For the purpose of comparing the bids only, the coupon rates bid being controlling, each bid shall stag 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 I 7 - I. . I 1 City further reserves the right to waive any irregularity in any bid or in the bidding process. I 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 eitheriby 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 �o complete the purchase of the Bonds within forty days following the acceptance of its bid, the amount of its deposit shall be forfieited 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 arelthe best bids received, the City Council shall determine by loft 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, at the office of the City Clerk or in Seattle, Washington, at the City's expense, or at such other place as the City Clerk and the success- ful bidder may mutually agree upon 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. I - 8 - I I . 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 terms of the purchase contract. All expenses in relation to the printing of CUSIP numbers on the Bonds shallbe 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 for by the Purchaser. Any bid presented after the time specified for the re- ceipt 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 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 depositlaccompanying 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 counsel of Seattle, Washington, covering the Bonds without cost to the purchaser, the opinion also being printed on each bond. Bond counsel shall not be 9 - I required to review or express any opinion concerning the complete- ness 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 information regarding the details of the Bonds may be received upon request made to the City Clerk or to Seattle- Northwest Securities Corporation, 3700 Seafirst Fifth Avenue Plaza, Seattle, Washington, the City's financial consultant. Section VII . 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 shall 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 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 - 10 - 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 VIII. Ordinance No. 3613, passed and approved on February 22, 1982, is repealed. Section IX. All actions heretofore taken by the City, its officers or employees, consistent with the provisions of this ordinance are ratified, approved and confirmed. PASSED by the City Council of the City of Renton, Washington, at a regular open public meeting thereof, this 12th day of April , 1982. 40 DELORES A. MEA i C Clerk APPROVED by the Mayor this 12th day of April, 1982. BARBARA Y. SHINPO H, Mayor FORM APPROVED: City Attorney Publication Date: April 18, 1982 - 11 -