Loading...
HomeMy WebLinkAboutReg 2015-03-16 Item 5B - Ordinance - Conform Debt Service Payment DatesCO uNcm AGENDA SYNOPSIS ----- Inilials Meelin ,g Date Prepared lry May A s review Co u n nil review 03/09/15 PMC ❑ Resolution Mtg Date Z Ordinance Altg Date 03116115 03/16/15 PMC C' SPONSOR ❑ Council ❑ M4gor ❑ 1 IR ❑ DCD Z Finance, ❑ ,Fire ❑ IT ❑ P&R ❑ Police ❑ PW/ SPONSOR'S The Council is being asked to approve an ordinance amending the Limited Tax General SUMMARY Obligation Bond Anticipation Note, 2014, ordinance No. 2464 and the Limited Tax General Obligation Bonds, 2014, ordinance No. 2465 to conform the debt service payment dates with the dates specified at closing by the purchasers of the Note and the Bonds, respectively. Ri;1virwi,'J) i3y [—] cow mtg. ❑ CA&P Cmte Z F&S Cinte ❑ Transportation Cmte ❑ Utilities Cmte ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 3/3/15 COMMITITE CHAIR: HOUGARDY RECOMMENDATIONS: SPONSOR /ADMIN. Finance Department C()NINI "I"" : F Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE AMOUM, BUDGF"TED APPROPRIATION REQUIRED Fund Source: Comments.- MTG. DATE RECORD OF COUNCIL ACTION 3/9/15 ITEM NO. 5.B. 79 S "TAT PEGGY MCCARTHY 3/9/15 A(,FNI)A ITFIMTITJJ,; Amend Ordinance No. 2464 and No. 2465 regarding debt service payment dates CATT'GORY Z Discussion At g Date 319115 ❑ Motion Mtg Date ❑ Resolution Mtg Date Z Ordinance Altg Date 03116115 F-1 Bid,,12vard AIR Dale ❑ Publi•.Heatin g Atg Date ❑ Other At g Di te SPONSOR ❑ Council ❑ M4gor ❑ 1 IR ❑ DCD Z Finance, ❑ ,Fire ❑ IT ❑ P&R ❑ Police ❑ PW/ SPONSOR'S The Council is being asked to approve an ordinance amending the Limited Tax General SUMMARY Obligation Bond Anticipation Note, 2014, ordinance No. 2464 and the Limited Tax General Obligation Bonds, 2014, ordinance No. 2465 to conform the debt service payment dates with the dates specified at closing by the purchasers of the Note and the Bonds, respectively. Ri;1virwi,'J) i3y [—] cow mtg. ❑ CA&P Cmte Z F&S Cinte ❑ Transportation Cmte ❑ Utilities Cmte ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 3/3/15 COMMITITE CHAIR: HOUGARDY RECOMMENDATIONS: SPONSOR /ADMIN. Finance Department C()NINI "I"" : F Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE AMOUM, BUDGF"TED APPROPRIATION REQUIRED Fund Source: Comments.- MTG. DATE RECORD OF COUNCIL ACTION 3/9/15 Forward to next Regular Meeting 3/16/15 MTG. DATE ATTACHMENTS 3/9/15 Informational Memorandum dated 2/25/15 Ordinance in Draft Form, with attachments Minutes from the Finance and Safety Committee meeting of 3/3/2015 3/16/15 Ordinance i 79 F• H Cl*ty of Tu1<:Wi*1, Washington 10 A • • • • A A ill' 0 MMI Musa= a A 0 A it ki &MAJ 0 1 P -A -11 IND &=A Q RIM MAI r. WHEREAS, the City previously issued its Limited Tax General Obligation Bond Anticipation Note, 2014 (the "Note") pursuant to Ordinance No. 2464, and its Limited Tax General Obligation Bonds, 2014 (the "Bonds") pursuant to Ordinance No. 2465; and WHEREAS, this amendment is necessary to conform the debt service payment dates set forth in Ordinance No. 2464 and Ordinance No. 2465, respectively, to the dates specified at closing by the purchasers of the Note and the Bonds, respectively; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Ordinance No. 2464, Section 4, Amended. Except as amended by this ordinance, all other provisions of Ordinance No. 2464 shall remain in full force and effect and all actions taken at any time prior to the effective date of this ordinance, which are consistent with Ordinance No. 2464 as so amended, are hereby ratified and confirmed in all respects. Section 4 of Ordinance No. 2464, subparagraphs B and C, are hereby amended to read as set forth below. (Additions are double underlined and deletions are enclosed in double parentheses and struck through.) V,J: Word Processing\Ordinances\LTGO Bonds-Conforming debt service payment dates 2-25-15 Mbis Page 1 of 4 a I Vrrlwilme fin r MWISTM B. Interest. Each Draw shall bear interest at the Interest Rate selected by the City from the Date of each Draw, which shall be computed on the basis of a year of 360 days for the actual number of days elapsed. The City Finance Director shall designate the Fixed Rate or the applicable Variable Rate Period with respect to each Draw in the Draw Request. So long as no Event of Default has occurred and is continuing, interest shall accrue on each Draw at the applicable Interest Rate. Upon the occurrence of an Event of Default and until such default is cured, the Bank may, at its option, impose the Default Rate. Interest on the outstanding principal amount of the Note will be paid quarterly, beginning ((Ap4))March 1, 2015, and each ((ApM))March 1, June 1, September 1 and December 1 thereafter, to and including the Maturity Date. If the first day of a calendar month is not a Business Day, the payment shall be due on the next succeeding Business Day. The City may elect to convert any Fixed Rate Draw to a Variable Rate as set forth in the Line of Credit Agreement, and may convert any Variable Rate Draw to a different Variable Rate Period or to a Fixed Rate at the expiration of any Variable Rate Period. Unless the City affirmatively elects a new Variable Rate Period in writing received by the Bank on or before 2:00 p.m. (Pacific Time) on the last Business Day of a Variable Rate Period for a specific Draw, the Interest Rate for such Draw shall be renewed for a successive Variable Rate Period of the same length as the expiring Variable Rate Period. Notwithstanding the foregoing, the Finance Director may consent to different terms in the Line of Credit Agreement regarding the Variable Rate Periods and indices available and regarding conversion of interest rate modes, if she deems the terms in the Line of Credit Agreement to be in the City's best interests. C. Commitment Fee. The City agrees to pay a commitment fee of 0.50% on the average daily balance of the unused portion of the commitment amount (i.e., the maximum stated amount of the Note, less the sum of all Draws) calculated on the basis of a 360-day year and the actual days elapsed. The commitment fee shall be payable quarterly in arrears on each interest payment date, commencing on ((Apf4))March 1, 2015. Section 2. Ordinance No. 2464, Section 5, Amended. Except as amended by this ordinance, all other provisions of Ordinance No. 2464 shall remain in full force and effect and all actions taken at any time prior to the effective date of this ordinance, which are consistent with Ordinance No. 2464 as so amended, are hereby ratified and confirmed in all respects. Section 5 of Ordinance No. 2464 is hereby amended to read as set forth below. (Additions are double underlined and deletions are enclosed in double parentheses and struck through.) W: Word Processing\Ordinances\LTGO Bonds-Conforming debt service payment dates 2-25-15 PM:bjs Page 2 of 4 W Term Out Provision. If, on the Maturity Date, the City is unable to pay the principal of or interest on the Note then due and payable in full and no Event of Default has occurred and is continuing, the Maturity Date shall be extended for a term of one year, to December 1, 2018. This period shall be referred to as the "Term Out Period." Interest on the outstanding principal amount shall accrue from and after December 1, 2017 at a rate equal to the Fixed Rate plus 2.0%, calculated on the basis of a year of 360 days for the actual number of days elapsed. Interest and Principal shall be due and payable in four approximately equal quarterly installments, on ((Apm))March 1, 2018, June 1, 2018, September 1, 2018 and December 1, 2018. The maximum term of the Note issued under this ordinance shall not be extended beyond December 1, 2018 without written approval by the Bank accepted by the City Council. Section 3. Exhibit A to Ordinance No. 2465 Amended. Except as amended by this ordinance, all other provisions of Ordinance No. 2465 shall remain in full force and effect and all actions taken at any time prior to the effective date of this amendatory ordinance, which are consistent with Ordinance No. 2465 as so amended, are hereby ratified and confirmed in all respects. Exhibit A of Ordinance No. 2465 is hereby amended to read as set forth in Exhibit A to this ordinance. (Additions are double underlined and deletions are enclosed in double parentheses and struck through.) Section 4. General Authorization and Ratification. The appropriate officers of the City are severally authorized to take such actions and to execute such documents as in their judgment may be necessary or desirable to carry out the transactions contemplated in connection with this ordinance, and to do everything necessary for the prompt delivery of the Bonds to the Purchaser and for the proper application, use and investment of the proceeds of the Bonds. All actions taken prior to the effective date of this ordinance in furtherance of the purposes described in this ordinance and not inconsistent with the terms of this ordinance are ratified and confirmed in all respects. Section 5. Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section/subsection numbering. Section 6. Severability. The provisions of this ordinance are declared to be separate and severable. If a court of competent jurisdiction, all appeals having been exhausted or all appeal periods having run, finds any provision of this ordinance to be invalid or unenforceable as to any person or circumstance, such offending provision shall, if feasible, be deemed to be modified to be within the limits of enforceability or validity. However, if the offending provision cannot be so modified, it shall be null and void with respect to the particular person or circumstance, and all other provisions of this ordinance in all other respects, and the offending provision with respect to all other persons and all other circumstances, shall remain valid and enforceable. W- Word Processing\Ordinances\LTGO Bonds-Conforming debt service payment dates 2-25-15 PM:bjs Page 3 of 4 M. Section 7. 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 day of 12015. ATTEST /AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Bond Counsel Jim Haggerton, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: Attachment: Exhibit A, Description of the Bonds W: Word Processing\Ordinances\LTGO Bonds-Conforming debt service payment dates 2-25-15 PM:bjs Page 4 of 4 L&I Exhibit A EXHIBIT A DESCRIPTION OF THE BONDS (a) Principal Amount: (b) Purchase Price: (c) Interest Payment Dates: (d) Maturity and Interest Rates $3,850,000 $3,850,000 (par amount of the Bonds) June 1 and December 1, commencing June 1, 2015. The Bonds shall mature on the dates and bear interest at the initial rates (computed on the basis of a 360 -day year of twelve 30 -day months), as follows: City of Tukwila, Washington Limited Tax General Obligation Bonds, 2014 (Taxable) Maturity Principal Interest Maturity Principal Interest (Dec 1) Amount Rate (Dec 1) Amount Rate 2015 $141,000 0.85% 2021 $ 165,000 3.93% 2016 149,000 1.17 2022 172,000 4.32 2017 150,000 1.60 2023 179,000 4.63 2018 153,000 2.17 2024 187,000 4.86 2019 156,000 2.67 2020 160,000 3.26 2034 2,238,000 2.85(') (1) Commencing Decemberf(daryar-y)) 1, 2019, interest on those Bonds maturing December 1, 2034, will be adjusted to the 5 -year Advance Fixed Bullet Rate, as quoted by the Seattle Federal Loan Bank from time to time, divided by 0.65, which will remain in effect through and including November 30((D-eeen,-her 3-1)), 2024. Commencing December 1 2024((Ja^i,202 -5)), interest on those Bonds maturing December 1, 2034, will be adjusted to the 5 -year Advance Fixed Bullet Rate, as quoted by the Seattle Federal Loan Bank from time to time, divided by 0.65, which will remain in effect through and including November 30((Derem4°r 21)), 2029. Commencing December 1, 2029 (( j.,,,u ary , 20 )), interest on those Bonds maturing December 1, 2034, will be adjusted to the 5 -year Advance Fixed Bullet Rate, as quoted by the Seattle Federal Loan Bank from time to time, divided by 0.65, which will remain in effect through and including December 1, 2034. (e) Optional Redemption: The Bonds maturing on and after December 1, 2020, are subject to redemption in whole or in part on or after December 1, 2019, without penalty at any time, upon 30 days written notice to the Registered Owner(s) of the Bond(s) to be redeemed. A -1 M. (f) Mandatory Redemption: The Bond due on December 1, 2034 will be paid in annual principal installments, plus accrued interest, on December 1 in the years and amounts as follows: Term Bonds Maturing 2034 Mandatory Redemption Years 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034* *Maturity. 86 A -2 Mandatory Redemption Amounts $197,000 202,000 208,000 214,000 220,000 226,000 233,000 239,000 246,000 253,000 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 2015, as that ordinance appears on the minute book of the City. 2. The Ordinance will be in full force and effect five days after publication in the City's official newspaper, which publication date is , 2015. 3. A quorum of the members of the City Council was present throughout the meeting and a majority of the members voted in the proper manner for the passage of the Ordinance. Dated: 2015. CITY OF TUKWIIA, WASHINGTON Christy O'Flaherty, MMC, City Clerk :/