Loading...
HomeMy WebLinkAboutORD 4181 CITY OF RENTON, WASHINGTON ORDINANCE N0. 4181 AN ORDINANCE relating to Local Improvement District No . 332 ; fixing the amount, form, date, interest rates , maturity and denominations of the Local Improvement District No . 332 Bonds ; providing for the sale and delivery thereof to Rainier National Bank, of Seattle, Washington; and fixing the interest rate on Local Improvement District No . 332 assessment installments . THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO ORDAIN, AS FOLLOWS: SECTION I . The total amount of the assessment roll in Local Improvement District No . 332 in the City of Renton, Washington (the "City" ) , created under Ordinance No . 3982 , as amended by Ordinance No . 4120 , was $4 , 113 , 609 . 32 . The 30-day period for making cash payments of assessments without interest in the District expired on September 19 , 1988, and the total amount of assessments paid in cash was $663 , 426 . 46 , leaving a balance of assessments unpaid in the assessment roll in the amount of $3 , 450, 182 . 86 . Local Improvement District No . 332 Bonds (the "Bonds" ) , therefore, shall be issued in the total principal amount of $3 , 450 , 182 . 86 . The Bonds shall be dated October 15 , 1988 , shall mature on October 15, 2005, and shall be numbered from 1 to 690, inclusive, in the manner and with any additional designation as the Bond Registrar (collectively, the fiscal agencies of the State of Washington located in Seattle, Washington, and New York, New York) deems necessary for the ORDINANCE N0. 4181 purpose of identification. Bond No. 1 shall be in the denomination of $5 , 182 . 86 and Bonds Nos . 2 to 690, inclusive, shall be in the denomination of $5, 000 . 00 each. Interest shall be computed on the basis of a 360-day year of twelve 30-day months . The Bonds shall bear interest at the rates set forth below, payable annually beginning October 15 , 1989 : Bond Numbers Interest (Inclusive) Amounts Rates 1 to 46 $230, 182 . 86 6 . 00% 47 to 92 230, 000 . 00 6 . 20 93 to 138 230, 000 . 00 6 . 40 139 to 184 230, 000 . 00 6 . 60 185 to 230 230 , 000 . 00 6 . 80 231 to 276 230 , 000 . 00 6 . 90 277 to 322 230 , 000 . 00 7 . 00 323 to 368 230 , 000 . 00 7 . 10 369 to 414 230, 000 . 00 7 . 20 415 to 460 230, 000 . 00 7 . 30 461 to 506 230, 000 . 00 7 . 40 507 to 552 230, 000 . 00 7 . 50 553 to 598 230, 000 . 00 7 . 60 599 to 644 230, 000 . 00 7 . 70 645 to 690 230 , 000 . 00 7 . 75 SECTION II . 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 contain 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 may be transferred only if endorsed in the manner provided thereon and surrendered to the Bond Registrar . The transfer of a Bond shall be by the Bond Registrar ' s receiving the Bond to be transferred, cancelling it and issuing a new - 2 - ORDINANCE NO. 4181 certificate in the form of the Bonds to the transferee after registering the name and address of the transferee on the Bond Register . The new certificate shall bear the same Bond number as the transferred Bond but may have a different inventory reference number or control number . Any transfer shall be without cost to the owner or transferee. The Bond Registrar shall not be obligated to transfer any Bond during the fifteen days preceding any principal payment or redemption date. SECTION III . Both principal of and interest on the Bonds shall be payable solely out of the Local Improvement Fund, District No . 332 (the "Bond Fund" ) , and from the Local Improvement Guaranty Fund of the City, and 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 Register on the last day of the month preceding the interest payment date. Principal of the Bonds shall be payable on 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 IV. The City reserves the right and option to redeem the Bonds prior to their stated maturity date on any interest payment date, in numerical order, lowest numbers first , at par plus accrued interest to the date fixed for redemption, whenever there is sufficient money in the Bond Fund to pay the Bonds so called and all earlier numbered Bonds over and above - 3 - ORDINANCE N0. 4181 the amount required for the payment of the interest on all unpaid Bonds . All Bonds redeemed under this section shall be cancelled. SECTION V. The City shall cause notice of any intended redemption of the Bonds to be given not less than 10 nor more than 20 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 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 so called are not redeemed when presented pursuant to the call . SECTION VI . 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 Fund and the Bond has been called for payment by giving notice of that call to the registered owner of that Bond. SECTION VII . The Bonds shall be printed, lithographed or typed on good bond paper in a form consistent with the provisions of this ordinance and State law, shall be siqned by - 4 - ORDINANCE NO. 4181 the Mayor and the City Clerk, either or both of whose signatures shall 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 followinq form, manually executed by the Bond Registrar, shall be valid or obligatory for any purpose or entitled to the benefits of this ordinance: CERTIFICATE OF AUTHENTICATION This bond is one of the fully registered City of Renton, Washington, Local Improvement District No . 332 Bonds 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 Registrar or issued by the City, those Bonds nevertheless may be authenticated, delivered and issued and, when authenticated, delivered and issued, shall be as binding on the City as though that person had continued to be an officer of the City authorized to sign - 5 - ORDINANCE NO. 4181 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 . SECTION VIII . 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 at all times be open to inspection by the City. The Bond Registrar is authorized, on behalf of the City, to authenticate and deliver Bonds transferred 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 Ordinance No . 3755 establishing a system of registration for the City' s bonds and obligations . The Bond Registrar shall be responsible for its representations contained in the Registrar ' s Certificate of Authentication 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 IX. The City covenants that it will take all actions necessary to prevent interest on the Bonds from being - 6 - ORDINANCE NO. 4181 included in gross income for federal income tax purposes , and it will neither take any action nor make or permit any use of proceeds 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 calculate, 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 listing or proposed listing by the Internal Revenue Service to the effect that it is a bond issuer whose arbitrage certiifications may not be relied upon. - 7 - ORDINANCE NO. 4181 SECTION X. The City has determined and certifies that (a) the Bonds are not "private activity bonds" within the meaning of Section 141 of the Code; (b) the reasonably anticipated amount of tax-exempt obligations (other than private activity bonds) which the City and any entity subordinate to the City (including any entity which the City controls , which derives its authority to issue tax-exempt obligations from the City or which issues tax-exempt obligations on behalf of the City) will issue during the calendar year in which the Bonds are issued will not exceed $10, 000 , 000; and (c) the amount of tax-exempt obligations , including the Bonds , designated by the City as "qualified tax-exempt obligations" for the purposes of Section 265(b} (3) of the Code during the calendar year in which the Bonds are issued does not exceed $10, 000, 000 . The City designates the Bonds as "qualified tax-exempt obligations" for the purposes of Section 265(b) (3) of the Code. SECTION XI . The Bonds shall be negotiable instruments to the extent provided by RCW 62A. 8-102 and 62A. 8-105 . SECTION XII . Rainier National Bank , of Seattle , Washington, has presented a purchase contract dated October 17, 1988 (the "Purchase Contract" ) , to the City offering to purchase the Bonds under the terms and conditions provided in the Purchase Contract, which written Purchase Contract is on file with the City Clerk and is incorporated herein by this reference. The City Council finds that entering into the Purchase Contract is in the City' s best interest and therefore - 8 - ORDINANCE NO. 4181 accepts the offer contained therein and authorizes its execution by City officials . The Bonds will be printed at City expense and will be delivered to the purchaser in accordance with the Purchase Contract, with the approving legal opinion of Foster Pepper & Shefelman, municipal bond counsel of Seattle, Washington, regarding the Bonds printed on each Bond. Bond counsel shall not be required to review and shall express no 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. The proper City officials are authorized and directed to do everything necessary for the prompt delivery of the Bonds to the purchaser, including without limitation the execution of the Official Statement on behalf of the City, and for the proper application and use of the proceeds of the sale thereof . SECTION XIII . The interest rate on the installments and delinquent payments of the special assessments in Local Improvement District No . 332 is revised and fixed at the rate of 7 . 9% per annum. SECTION XIV. Pending the printinq, execution 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 - 9 - .- a ORDINANCE N0. 4181 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, executed and available for delivery. SECTION XV. This ordinance shall be effective upon its passage, approval and five days after publication. PASSED by the City Council this 17th day of October, 1988 . �a��.�'� Maxine E. Motor, City Clerk APPROVED BY THE MAYOR this 17th day of October, 1988 . ''� \ � �o�.�;'\ "k� �,� �, v �, t Ear7 Cly��,`"Ntayor � Approved as to Form: �'1 � � - � • Date of Publication: October 20 , 1988 2320r - 10 -