HomeMy WebLinkAboutReg 2010-08-02 Item 6C - Ordinance - Limited Tax General Obligation Bonds for Southcenter Parkway (Correct Scrivener's Error)CAS NUMBER 10-087
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RECORD OF COUNCIL ACTION
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ITEM INFORMATION
ORIGINAL AGENDA DATE: AUGUST 2, 2010
IT
AGENDA ITEM TITLE An ordinance amending Ordinance #2296, regarding the sale of Limited Tax General
Obligation Bonds (Southcenter Pkwy) to correct a scrivener's error.
CATEGORY n Discussion Motion n Resolution Ordinance BzdAward I I Public Hearing Other
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On July 19, 2010, the Council passed Ordinance #2296 relating to the sale of bonds for
Southcenter Parkway improvements and emergency response capital equipment. On July
27, our bond counsel noticed a date in the ordinance shown as December 1, 2010 should
be December 1, 2020. While this scrivener's error did not affect the bond closing date, it is
advisable that the ordinance be amended as soon as possible. Page 1 of the ordinance
shows the change in strike through underline format.
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Planning Comm.
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City of Tukwila
Washington
Ordinance No.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, AMENDING ORDINANCE NO. 2296, REGARDING THE
SALE OF LIMITED TAX GENERAL OBLIGATION BONDS, TO CORRECT A
SCRIVENER'S ERROR; RATIFYING AND CONFIRMING PRIOR ACTIONS;
AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the City Council of the City of Tukwila (the "City adopted Ordinance
No 2296 (the "Bond Ordinance on July 19, 2010 authorizing the sale of its Limited Tax
General Obligation Bonds, 2010A and Limited Tax General Obligation Bonds, 2010B
(Taxable Build America Bonds Direct Payment) (together, the "Bonds and
WHEREAS, the Bond Ordinance contained a scrivener's error in Section 7(A) which
is not material, but it is in the best interest of the City and the purchasers of the Bonds to
correct that error in order to ensure that the relevant provision of the Bond Ordinance
is fully consistent with the early redemption provisions set forth in the Bond Purchase
Agreement and the Official Statement for the Bonds;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Definitions. The meaning of capitalized terms used and not otherwise
defined in this ordinance shall be as set forth in Ordinance No 2296
Section 2. Amendment of Section 7 of Ordinance No. 2296. Section 7 of Ordinance
No. 2296 is amended to read as follows:
Section 7. Redemption Provisions and Open Market Purchase of
Bonds.
A. Optional Redemption. The Series 2010A Bonds shall be issued
without the right or option of the City to redeem the Series 2010A Bonds
prior to their stated maturity dates. The City reserves the right and option
to redeem the Series 2010B Bonds maturing on or after Deee—tber1,
20}0December 1. 2020, at any time on or after June 1, 2020, as a whole or in
part, (within one or more maturities selected by the City and randomly
within a maturity in such manner as the Bond Registrar shall determine),
at a price equal to the principal amount to be redeemed, without
premium, plus accrued interest to the date fixed for redemption.
B. Extraordinary Optional Redemption. The City additionally
reserves the right and option to redeem the Series 2010B Bonds prior to
their stated maturity dates at any time prior to June 1, 2020, as a whole or
in part, upon the occurrence of an Extraordinary Event, at the
Extraordinary Optional Redemption Price.
1. An "Extraordinary Event" will have occurred if the City
determines that a material adverse change has occurred to Section 54AA
or Section 6431 of the Code or there is any guidance published by the
Internal Revenue Service or the United States Treasury with respect to
such Sections or any other determination by the Internal Revenue Service
or the United States Treasury, which determination is not the result of any
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act or omission by the City to satisfy the requirements to qualify to receive
the 35% cash subsidy payment from the United States Treasury, pursuant
to which the City's 35% cash subsidy payment from the United States
Treasury is reduced or eliminated.
2. "Extraordinary Optional Redemption Price" means the
greater of:
a) 100% of the principal amount of the Series 2010B
Bonds to be redeemed; or
b) the sum of the present values of the remaining
scheduled payments of principal of and interest to the stated maturity
date on the Series 2010B Bonds to be redeemed, discounted to the earlier
(i) the stated maturity date on the Series 2010B Bonds to be redeemed, or
(ii) the next available date on which the 2010B Bonds may be optionally
redeemed at a price of par (plus accrued interest, if any), discounted to the
date on which such Series 2010B Bonds are to be redeemed on a
semiannual basis, assuming a 360 -day year consisting of twelve 30 -day
months, at the Treasury Rate plus 100 basis points, plus, in each case,
accrued interest on the Series 2010B Bonds to be redeemed to the date
fixed for redemption.
3. "Treasury Rate" means, with respect to any date fixed for
redemption for a particular Series 2010B Bond, the yield to maturity as of
such date of United States Treasury securities with a constant maturity
(excluding inflation indexed securities, and as compiled and published in
the most recent Federal Reserve Statistical Release H.15 (519) that has
become publicly available as of the first business day that is at Least two
business days prior to such date or, if such Statistical Release is no longer
published, any publicly available source of similar market data) most
nearly equal to the period from such date to the stated maturity date of
such Series 2010B Bond.
4. At the request of the Bond Registrar, the Extraordinary
Optional Redemption Price shall be determined by an independent
accounting firm, investment banking firm or financial advisor retained by
the City at the City's expense. Absent manifest error, such determination
shall be conclusive and binding on the City, the Bond Registrar and the
Registered Owners, and neither the City nor the Bond Registrar shall be
liable for relying on such determination.
C. Mandatory Redemption.
1. The Series 2010B Bonds maturing in 2024 are Term Bonds
and, if not redeemed under the optional or extraordinary optional
redemption provisions set forth above or purchased in the open market
under the provisions set forth below, shall be called for redemption
randomly within a maturity in such manner as the Bond Registrar shall
determine at par plus accrued interest on December 1 in years and
amounts as follows:
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2010B Term Bonds Maturing
in 2024
Mandatory
Redemption Mandatory
Dates Redemption
(December 1) Amounts
2021 $450,000
2022 465,000
2023 480,000
2024* 500,000
Maturity
2. If the City redeems under Section 7.A or B, purchases in the
open market or defeases Term Bonds, the par amount of the Term Bonds
so redeemed, purchased or defeased (irrespective of their actual
redemption or purchase prices) shall be credited against one or more
scheduled mandatory redemption amounts for those Term Bonds. The
City shall determine the manner in which the credit is to be allocated and
shall notify the Bond Registrar in writing of its allocation at least 60 days
prior to the earliest mandatory redemption date for that maturity of Term
Bonds for which notice of redemption has not already been given.
D Partial Redemption of Bonds. Portions of the principal amount of
any Bond, in installments 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 to the Bond Registrar, 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 series, maturity
and interest rate in any of the denominations authorized by this ordinance
in the aggregate principal amount remaining unredeemed.
E. Open Market Purchase. The City further reserves the right and
option to purchase any or all of the Bonds in the open market at any time
at any price plus accrued interest to the date of purchase.
F. Selection of Bonds for Redemption. If fewer than all of the
outstanding Bonds are to be redeemed prior to maturity, then Bonds shall
be redeemed within one or more maturities selected by the City and
randomly within a maturity in such manner as the Bond Registrar shall
determine. Notwithstanding the foregoing, for as long as the Bonds are
registered in the name of DTC or its nominee, selection of Bonds for
redemption shall be in accordance with the Letter of Representations.
G. Cancellation of Bonds. All Bonds purchased or redeemed under
this section shall be canceled.
Section 3. Ratification of Prior Acts. All acts taken consistent with the authority of
this ordinance and prior to its effective date are ratified, approved and confirmed.
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Section 4. Effective Date. This ordinance or a summary thereof shall be published
in the official newspaper of the City, and shall take effect and be in full force five days
after passage and publication as provided by law.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON,
at a Regular Meeting thereof this 2 day of August, 2010.
ATTEST/ AUTHENTICATED:
Christy O'Flaherty, CMC, City Clerk
APPROVED AS TO FORM BY:
Office of the City Attorney
Jim Haggerton, Mayor
Filed with the City Clerk:
Passed by the City Council.
Published.
Effective Date:
Ordinance Number:
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CERTIFICATION
I, the undersigned, City Clerk of the City of Tukwila, Washington (the "City
hereby certify as follows:
1 The attached copy of Ordinance No (the "Ordinance is a full, true and
correct copy of an ordinance duly passed at a regular meeting of the City Council of the
City held at the regular meeting place thereof on August 2, 2010, as that ordinance
appears on the minute book of the City; and the ordinance will be in full force and effect
five days after publication in the City's official newspaper;
2. A quorum of the members of the City Council was present throughout the
meeting and a majority of those members present voted in the proper manner for the
passage of the ordinance.
IN WITNESS WHEREOF, I have hereunto set my hand this 2nd day of August, 2010
CITY OF TUKWILA, WASHINGTON
Christy O'Flaherty, CMC, City Clerk
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