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HomeMy WebLinkAboutOrd 1561 - LID #32 (Local Improvement District) - Sale and Delivery of Bonds �,�w�u 1908 CITY OF TUKWILA WASHINGTON ORDINANCE NO. -S 6 AN ORDINANCE RELATING TO LOCAL IMPROVEMENT DISTRICT NO. 32; FIXING THE AMOUNT, FORM, DATE, INTEREST RATES, MATURITY AND DENOMINATIONS OF LOCAL IMPROVEMENT DISTRICT NO. 32 BONDS; PROVIDING FOR THE SALE AND DELIVERY THEREOF TO SHEARSON LEHMAN HUTTON INC. IN SEATTLE, WASHINGTON; AND FIXING THE INTEREST RATE ON LOCAL IMPROVEMENT DISTRICT NO. 32 ASSESSMENT INSTALLMENTS. THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, DO ORDAIN as follows: Section 1 Description of Bonds The total amount of the assessment roll in Local Improvement District No. 32 in the City of Tukwila, Washington (the "City created under Ordinance No. 1455, passed March 14, 1988, was $396,000. The 30 -day period for making cash payments of assessments without interest in the District expired on February 13, 1990, and the total amount of assessments paid in cash was $13,100, leaving a balance of assessments unpaid on the assessment roll in the amount of $382,900. Local Improvement District No. 32 Bonds (the "Bonds therefore, shall be issued in the total principal amount of $382,900. The Bonds shall be dated April 1, 1990, shall mature on April 1, 2002, and shall be numbered from 1 to 76, 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 purpose of identification. Bond No. 1 shall be in the denomination of $7,900 and Bonds Nos. 2 to 76, inclusive, shall be in the denomination of $5,000 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 April 1, 1991: Bond Numbers Interest (Inclusive) Amounts Rates 1 to 8 42,900 8.00 9 to 32 120,000 7.50 33 to 55 115,000 7.25 56 to 76 105,000 7.50 Section 2. 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 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 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 3. Payment of Bonds. Both principal of and interest on the Bonds shall be payable solely out of the Local Improvement Fund, District No. 32 (the "Bond Fund and from the Local Improvement Guaranty Fund of the City, and shall be 2 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 15th 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 4. Optional Redemption of Bonds. 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 the amount required for the payment of the interest on all unpaid Bonds. All Bonds redeemed under this section shall be cancelled. Section 5. Notice of Redemption. The City shall cause notice of any intended redemption of Bonds to be given not less than 15 nor more than 30 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 6. Failure to Redeem Bonds. If any Bond is not redeemed when properly presented at its maturity or call date, 3 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 7. Form and Execution of Bonds. 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 signed by 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 following 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 Tukwila, Washington, Local Improvement District No. 32 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 4 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 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 8. Bond Registrar. 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. 1338 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 9. Preservation of Tax Exemption for Interest on Bonds. The City covenants that it will take all actions necessary to prevent interest on the Bonds from being included 5 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 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 certifications may not be relied upon. Section 10. Small Governmental Issuer Arbitrage Rebate Exemption and Designation of Bonds as Qualified Tax Exempt Obligations. The City finds and declares that (a) it is a duly organized and existing governmental unit of the State of Washington and has general taxing power; (b) no Bond which is part of this issue of Bonds is a "private activity bond" within the meaning of Section 141 of the United States Internal Revenue Code of 1986, as amended (the "Code (c) at least 95% of the net proceeds of the Bonds will be used for local governmental activities of the City (or of a governmental unit the jurisdiction of which is entirely within the jurisdiction of the City); (d) the aggregate face amount of all tax exempt obligations (other than private activity bonds) issued by the City and all entities 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) during the calendar year in which the Bonds are issued is not reasonably expected to exceed $5,000,000; and (e) 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 6 therefore certifies that the Bonds are eligible for the arbitrage rebate exemption under Section 148(f)(4)(C) of the Code and designates the Bonds as "qualified tax exempt obligations" for the purposes of Section 265(b)(3) of the Code. Section 11. Bonds Negotiable. The Bonds shall be negotiable instruments to the extent provided by RCW 62A.8 -102 and 62A.8 -105. Section 12. Approval of Bond Purchase Contract. Shearson Lehman Hutton Inc., of Seattle, Washington, has presented a purchase contract (the "Bond Purchase Contract to the City offering to purchase the Bonds under the terms and conditions provided in the Bond Purchase Contract, which written Bond Purchase Contract is on file with the City Clerk and is incorporated herein by this reference. The City Council finds that entering into the Bond Purchase Contract is in the City's best interest and therefore 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 Bond 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 City has been provided with copies of a preliminary official statement dated March 23, 1990 (the "Preliminary Official Statement prepared in connection with the sale of the Bonds. For the sole purpose of the purchaser's compliance with Securities and Exchange Commission Rule 15c2- 12(b)(1), the 7 City "deems final" that Preliminary Official Statement as of its date, except for the omission of information as to offering prices, interest rates, selling compensation, delivery date and other terms of the Bonds dependent on such matters. 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 13. Interest Rate on Assessments. The interest rate on the installments and delinquent payments of the special assessments in Local Improvement District No. 32 is revised and fixed at the rate of 7.93% per annum. Section 14. Effective Date. This ordinance shall take effect on the five days following its publication. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, this 2nd day of April, 1990. ATTEST /AUTHENTICATED: AC NG CITY CLERK, JANE CANTU By MLC -603* APPROVED AS TO FORM: OFFIC OF THE CITY ATTORNEY I FI D WITH THE CITY CLERK: y- 2 PASSED BY THE CITY COUNCIL: PUBLISHED: 4'- EFFECTIVE DATE: 4' qO ORDINANCE NO.: l56 MAAlf?1 GAR'S VAN DUSEN Date Approved PUBLISHED: VALLEY DAILY NEWS FRIDAY, APRIL 6, 1990 8