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HomeMy WebLinkAboutORD 4201 . , �,,i„r . _ . Amended by ORD 4661 . . , , �r .- . CITY OF RENTON, WASHINGTON ORDINANCE NO. 4201 AN QRDINANCE of the City of Renton, Washington, relating to contracting indebtedness ; providing for the issuance of $1, 600 , 000 par value of Limited Tax General Obligation Bonds, 1989 , of the City for general City purposes to provide funds with which to pay the cost of replacing equipment, making capital improvements, including remodeling and upgrading �acilities of the police department and expansion and remod�ling of other municipal office space, replacing certain fire equipment, and conducting various pazk, street/traffic and public works projects ; fixing the date, form, maturities, interest rates, terms and covenants of the bonds ; es�ablishing a bond redemp- tion fund and a construction fund; ratifying and confirming the public sal.e of the bonds ; and accept- ing the bid of Merrill Lynch Capital Markets of Los Anqeles, California, for the purchase of those bonds . WHEREAS, the City of Renton, Washington (the "City" ) , is in need of replacing equipment, making �apital improvements, including remodeling and upgrading �acilities of the police department and e�pansion and remodeling of other municipal office space, replacing certain fire equipment and conducting various park street/traffic and pub}.ic works projects , the estimated cost of which is $1, 600, 000 , and the City does not have available sufficient funds to pay the cost; and WHEREAS, the City Council deems it in the best in�erests of the City to issue and sell its limited tax general obligation bonds in the principal amount of $1, 600 , 000 to pay the cost of replacing equipment, making capital improvements , including . R , � � , � . e F . ORDINANCE N0. 4201 remodeling and upgrading facilities of the police department and expansion and remodeling of other municipal office space, replacing certain fire equipment and conducting various park, street/traffic and public works projects ; and WHEREAS, the City caused notice of sale of bonds to be published in the "Daily Journal of Commerce" in Seattle, Washinqton, and specified in that notice of sale that bids would be received by the City Clerk until 11 : 00 a .m. on February 6 , 1989, in her office in the City Hall and six bids were received; and WHEREAS, the City Council has determined that Merrill Lynch Capital Markets of Los Angeles , California submitted the lowest bid based on the true interest costs ; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO ORDAIN as follows : SECTION I . Debt Capacity. The assessed valuation of the taxable property of the City as ascertained by the last pre- ceding assessment for City purposes for the calendar year 1989 is $2 , 286 , 728, 734 , and the City has outstanding general indebt- edness evidenced by limited tax general obligation bonds , lease purchase agreements and real estate contracts in the principal amount of $12 , 017, 564 incurred within the limit of up to 3/4 of 1% of the value of the taxable property within the City permitted for general municipal purposes without a vote of the - 2 - M � • . ORDINANCE N0. 4201 qualified voters therein, unlimited tax general obligation bonds in the principal amount of $5 , 500, 000 incurred within the limit of up to 2-1/2% of the value of the taxable property within the City for capital purposes only and unlimited tax general obliga- tion bonds in the principal amount of $5, 975, 000 incurred within the additional limit of up to 2-1/2% of the value of the taxable property within the City for parks and open space purposes issued pursuant to a vote of the qualified voters of the City, and the amount of indebtedness for which bonds are authorized herein to be issued is $1, 600 , 000 . SECTION II . Authorization of Bonds . The City shall borrow money on the credit of the City and issue negotiable limited tax general obligation bonds evidencing that indebtedness in the amount of $1, 600 , 000 for general City purposes to provide the funds to pay the cost of replacing equipment, making capital improvements, including remodeling and upgrading facilities of the police department and expansion and remodeling of other municipal office space, replacing certain fire equipment and conducting various park, street/traffic and public works proj- ects (the "Project" ) and to pay the costs of issuance and sale of the bonds (the "costs of issuance" ) . The general indebted- ness to be incurred shall be within the limit of up to 3/4 of 1°0 of the value of the taxable property within the City permitted - 3 - , .. , � , ., , . ORDINANCE NO. 4201 for general municipal purposes without a vote of the qualified voters therein. SECTION III . The City accepts the bid of and shall issue and sell to Merrill Lynch Capital Markets of Los Angeles , California, under the terms and conditions herein set forth, the total $1, 600 , 000 par value negotiable limited tax general obli- gation bonds of the City authorized by Section II herein for the purposes specified in Section II . SECTION IV. Description of Bonds . The bonds shall be called Limited Tax General Obligation Bonds , 1989 , of the City (the "Bonds" ) ; shall be in the aggregate principal amount of $1, 600 , 000 ; shall be dated February l , 1989 ; shall be in the denomination of $5 , 000 or any integral multiple thereof within a single maturity; shall be numbered separately in the manner and with any additional designation as the Bond Registrar (collec- tively, the fiscal agencies of the State of Washington located in Seattle, Washington, and New York, New York) deems necessary for purposes of identification; shall bear interest at the rates set forth below (computed on the basis of a 360-day year of twelve 30-day months) , payable on August l, 1989 , and semi- annually thereafter on each succeeding February 1 and August l ; and shall mature on February 1 in years and amounts as follows : - 4 - , . � r , ORDINANCE N0. 4201 Maturity Interest Years Amounts Rates 1990 $ 80, 000 6 . 10% 1991 85 , 000 6 . 20 1992 90 , 000 6 . 30 1993 95 , 000 6 . 40 1994 105 , 000 6 . 50 1995 110 , 000 6 . 60 1996 120 , 000 6 . 70 1997 130 , 000 6 . 75 1998 135 , 000 6 . 80 1999 145 , 000 6 . 80 2000 155 , 000 6 . 90 2001 170 , 000 6 . 90 2002 180 , 000 7 . 00 The life of the capital facilities to be acquired with the proceeds of the Bonds exceeds thirteen years . SECTION V. Registration and Transfer of Bonds . The Bonds shall be issued only in registered form as to both principal and interest and recorded on books or records maintained by the Bond Registrar (the "Bond Register" ) . The Bond Register shall con- tain the name and mailing address of the owner of each Bond and the principal amount and number of each of the Bonds held by each owner . Bonds surrendered to the Bond Registrar may be exchanged for Bonds in any authorized denomination of an equal aggregate principal amount and of the same interest rate and maturity. Bonds may be transferred only if endorsed in the manner provided thereon and surrendered to the Bond Registrar . Any exchange or transfer shall be without cost to the owner or transferee. The Bond Registrar shall not be obligated to exchange or transfer - 5 - , .r � . ORDINANCE N0. 4201 any Bond during the fifteen days preceding any principal payment or redemption date. SECTION VI . Payment of Bonds . Both principal of and interest on the Bonds shall be payable in lawful money of the United States of America . Interest on the Bonds shall be paid by checks or drafts mailed on the interest payment date to the registered owners at the addresses appearing on the Bond Regis- ter on the fifteenth day of the month preceding the interest payment date . Principal of the Bonds shall be payable upon presentation and surrender of the Bonds by the registered owners at either of the principal offices of the Bond Registrar at the option of the owners . SECTION VII . Optional Redemption and Open Market Purchase of Bonds . Bonds maturing in the years 1990 through 1996 , inclusive, shall be issued without the right or option of the City to redeem those Bonds prior to their stated maturity dates . The City reserves the right and option to redeem the Bonds maturing on or after February l , 1997, prior to their stated maturity dates , as a whole, or in part within one or more maturities selected by the City (and by lot within a maturity in such manner as the Bond Registrar shall determine) , on February l, 1996 , or on any interest payment date thereafter , at par plus accrued interest to the date fixed for redemption. - 6 - ORDINANCE NO. 4201 Portions of the principal amount of any Bond, in install- ments of $5 , 000 or any integral multiple thereof, may be redeemed. If less than all of the principal amount of any Bond is redeemed, upon surrender of that Bond at either of the prin- cipal offices of the Bond Reqistrar, there shall be issued to the registered owner, without charge therefor , a new Bond (or Bonds at the option of the registered owner) of the same matur- ity and interest rate in any of the denominations authorized by this ordinance in the aggregate principal amount remaining unredeemed. The City further reserves the right and option to purchase any or all of the Bonds in the open market at any time at a price not in excess of par plus accrued interest to the date of purchase . All Bonds purchased or redeemed under this section shall be cancelled. SECTION VIII . Notice of Redemption. The City shall cause notice of any intended redemption of Bonds to be given not less than 30 nor more than 60 days prior to the date fixed for redemption by first-class mail , postage prepaid, to the registered owner of any Bond to be redeemed at the address appearing on the Bond Register at the time the Bond Registrar prepares the notice, and the requirements of this sentence shall be deemed to have been fulfilled when notice has been mailed as - 7 - t ORDINANCE NO. 4201 so provided, whether or not it is actually received by the owner of any Bond. Interest on Bonds called for redemption shall cease to accrue on the date fixed for redemption unless the Bond or Bonds called are not redeemed when presented pursuant to the call . In addition, the redemption notice shall be mailed within the same period, postage prepaid, to Moody' s Investors Service, Inc . , and Standard & Poor ' s Corporation at their offices in New York, New York, or their successors , to Merrill Lynch Capital Markets at its principal office in Los Angeles , California, or its successor, and to such other persons and with such addi- tional information as the City Finance Director shall determine, but these additional mailings shall not be a condition precedent to the redemption of Bonds . SECTION IX. Failure to Redeem Bonds . If any Bond is not redeemed when properly presented at its maturity or call date, the City shall be obligated to pay interest on that Bond at the same rate provided in the Bond from and after its maturity or call date until that Bond, both principal and interest , is paid in full or until sufficient money for its payment in full is on deposit in the bond redemption fund hereinafter created and the Bond has been called for payment by giving notice of that call to the registered owner of each of those unpaid Bonds . - 8 - ORDINANCE N0. 4201 SECTION X. Pledge of Taxes . For as long as any of the Bonds are outstandinq, the City irrevocably pledges to include in its budget and levy taxes annually within the constitutional and statutory tax limitations provided by law without a vote of the electors of the City on all of the taxable property within the City in an amount sufficient , together with other money legally available and to be used therefor, to pay when due the principal of and interest on the Bonds , and the full faith, credit and resources of the City are pledged irrevocably for the annual levy and collection of those taxes and the prompt payment of that principal and interest . SECTION XI . Form and Execution of Bonds . The Bonds shall be printed or lithographed on good bond paper in a form consis- tent with the provisions of this ordinance and state law, shall be signed by the Mayor and City Clerk, either or both of whose signatures may be manual or in facsimile, and the seal of the City or a facsimile reproduction thereof shall be impressed or printed thereon. Only Bonds bearing a Certificate of Authentication in the following form, manually signed by the Bond Reqistrar , shall be valid or obligatory for any purpose or entitled to the benefits of this ordinance : - 9 - ORDINANCE NO. 4201 CERTIFICATE OF AUTHENTICATION This bond is one of the fully registered City of Renton, Washington, Limited Tax General Obligation Bonds , 1989 , described in the Bond Ordinance. WASHINGTON STATE FISCAL AGENCY Bond Registrar By Authorized Officer The authorized signing of a Certificate of Authentication shall be conclusive evidence that the Bonds so authenticated have been duly executed, authenticated and delivered and are entitled to the benefits of this ordinance. If any officer whose facsimile signature appears on the Bonds ceases to be an officer of the City authorized to sign bonds before the Bonds bearing his or her facsimile signature are authenticated or delivered by the Bond Reqistrar or issued by the City, those Bonds nevertheless may be authenticated, delivered and issued and, when authenticated, issued and delivered, shall be as bindinq on the City as though that person had continued to be an officer of the City authorized to sign bonds . Any Bond also may be signed on behalf of the City by any person who, on the actual date of signing of the Bond, is an officer of the City authorized to sign bonds , although he or she did not hold the required office on the date of issuance of the Bonds . - 10 - ORDINANCE N0. 4201 SECTION XII . Bond Reqistrar . The Bond Registrar shall keep, or cause to be kept, at its principal corporate trust office, sufficient books for the registration and transfer of the Bonds which shall be open to inspection by the City at all times . The Bond Registrar is authorized, on behalf of the City, to authenticate and deliver Bonds transferred or exchanqed in accordance with the provisions of the Bonds and this ordinance, to serve as the City' s paying agent for the Bonds and to carry out all of the Bond Registrar ' s powers and duties under this ordinance and City Ordinance No . 3755 establishing a system of registration for the City' s bonds and obligations . The Bond Registrar shall be responsible for its represen- tations contained in the Bond Reqistrar ' s Certificate of Authen- tication on the Bonds . The Bond Registrar may become the owner of Bonds with the same rights it would have if it were not the Bond Registrar and, to the extent permitted by law, may act as depository for and permit any of its officers or directors to act as members of , or in any other capacity with respect to , any committee formed to protect the rights of Bond owners . SECTION XIII . Preservation of Tax Exemption for Interest on Bonds . The City covenants that it will take a11 actions necessary to prevent interest on the Bonds 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 - 11 - ORDINANCE NO. 4201 of the Bonds or other funds of the City treated as proceeds of the Bonds at any time during the term of the Bonds which will cause interest on the Bonds 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 cal- culate, or cause to be calculated, and rebate to the United States all earnings from the investment of gross proceeds of the Bonds 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 Bonds , 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 Bonds under Section 148 of the Code, the City covenants that , to the extent permitted by that Section, it will pay the penalty provided in Subsection 148 (f) (7) (C) if required to prevent interest on the Bonds from being included in gross income for federal income tax purposes . The City certifies that it has not been notified of any listinq or proposed listing by the Internal Revenue Service to the effect that it is a bond issuer whose arbitrage certifi- cations may not be relied upon. - 12 - ORDINANCE N0. 4201 SECTION XIv. Bonds Neqotiable . The Bonds shall be nego- tiable instruments to the extent provided by RCW 62A. 8-102 and 62A. 8-105 . SECTION XV. Advance Refunding or Defeasance of the Bonds . The City may issue advance refunding bonds pursuant to the laws of the State of Washington or use money available from any other lawful source to pay when due the principal of and interest on the Bonds , or any portion thereof included in a refunding or defeasance plan, and to redeem and retire, refund or defease all such then-outstanding Bonds (hereinafter collectively called the "defeased Bonds" ) and to pay the costs of the refunding or defeasance . If money and/or "government obligations" ( as defined in Chapter 39 . 53 RCW, as now or hereafter amended) maturing at a time or times and bearing interest in amounts (together with money, if necessary) sufficient to redeem and retire, refund or defease the defeased Bonds in accordance with their terms are set aside in a special trust fund irrevocably pledged to that redemption and retirement of defeased Bonds (hereinafter called the "trust account" ) , then all right and interest of the owners of the defeased Bonds in the covenants of this ordinance and in the funds and accounts obligated to the payment of the defeased Bonds shall cease and become void. The owners of defeased Bonds shall have the right to receive payment of the principal of and interest on the defeased Bonds from the - 13 - ORDINANCE N0. 4201 trust account . The defeased Bonds shall be deemed no longer outstanding, and the City may apply any money in any other fund or account established for the payment or redemption of the defeased Bonds to any lawful purposes as it shall determine . SECTION XVI . Funds ; Deposit of Bond Proceeds . There is created and established in the office of the City Finance Director a special fund designated as the Limited Tax General Obligation Bond Fund, 1989 (the "Bond Fund" } . Accrued interest on the Bonds , if any, received from the sale and delivery of the Bonds shall be paid into the Bond Fund. There also is created and established in the office of the City Finance Director a special fund designated as the 1989 Capital Improvement Fund (the "Construction Fund" ) . There previously has been created in the office of the Finance Director a special fund designated as the Equipment Rental Fund. The principal proceeds received from the sale and delivery of the Bonds shall be deposited as fol- lows : $318 , 700 in the Equipment Rental Fund and the balance in the Construction Fund and used for the purposes specified in Section II of this ordinance . Until needed to pay the costs of the Project and costs of issuance, the City may invest principal proceeds temporarily in any legal investment , and the investment earnings may be retained in the Construction Fund and the Equip- ment Rental Fund and spent for the purposes of those funds except that earnings subject to a federal tax or rebate require- - 14 - ORDINANCE NO. 4201 ment may be withdrawn from the Construction Fund and the Equip- ment Rental Fund and used for those tax or rebate purposes . All taxes collected for and allocated to the payment of the prin- cipal of and interest on the Bonds shall be deposited in the Bond Fund. SECTION XVII . Ratification of Public Sale of Bonds and Notice of Sale . The City Council approves and confirms the Notice of Sale of the Bonds published in the "Daily Journal of Commerce" of Seattle, Washington, and the Notice of Sale of the Bonds as published in the Preliminary Official Statement and published in connection with the Bonds by Seattle-Northwest Securities Corporation, the City' s financial consultant . SECTION XVIII . Printing and Delivery of Bonds . The officers of the City are directed to have the Bonds printed and authenticated immediately. The Bonds shall be delivered to the purchaser pursuant to its bid upon payment therefor at the price bid, plus accrued interest from the date of the Bonds to their date of delivery. In connection therewith, a certified copy of the transcript of proceedings pertaining to the issuance of the Bonds shall be furnished to Foster Pepper & Shefelman so that their approving legal opinion may be obtained for delivery to the purchaser in compliance with the requirements of the Notice of Bond Sale and of the bid. - 15 - ORDINANCE NO. 4201 Bond counsel shall not be required to review and shall express no opinion concerning the completeness or accuracy of any offical statement, offering circular or other sales material issued or used in connection with the Bonds, and bond counsel ' s opinion shall so state. SECTION XIX. Temporary Bond. Pendinq the printing , exe- cution and delivery to the purchaser of definitive Bonds , the City may cause to be executed and delivered to the purchaser a single temporary Bond in the total principal amount of the Bonds . The temporary Bond shall bear the same date of issuance, interest rates , principal payment dates and terms and covenants as the definitive Bonds , shall be issued as a fully registered Bond in the name of the purchaser, and otherwise shall be in a form acceptable to the purchaser . The temporary Bond shall be exchanged for definitive Bonds as soon as they are printed, authenticated and available for delivery. SECTION XX. Ratification and Confirmation. All actions heretofore taken by the City or on its behalf, including the publication by the City Clerk of the Notice of Sale of the Bonds and the return of the good faith deposits to the unsuccessful bidders , consistent with the provisions of this ordinance are ratified and confirmed. - 16 - ORDINANCE NO. 4201 SECTION XXI . Effective Date of Ordinance. This ordinance shall be effective upon its passage, approval and five days after publication. PASSED by the City Council this 6th day of February, 1989 . � �� _ Maxine E. Motor, City Clerk APPROVED BY THE MAYOR this 6th day of February, 1989 . � r �C't:, -'r--4-^��1.� c .� Earl Clymer, ,M or �- ,� Approved as to Form: � / � v Date of Publication: Februar_y 10, 1989 2 3 9 3 r - 1 / -