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HomeMy WebLinkAbout1982-2660 ISSUANCE & SALE OF BOND ANTICIPATION NOTES; & AMENDING ORDINANCE NO. 2133 EikiED JAN ORDINANCE NO. 2660 3- 1983 CITY LEGAL DEPT. AN ORDINANCE of the City of Yakima, Washington, providing for the issuance and sale of its bond anticipation notes in the principal amount of not to exceed $3,100,000; providing the form, terms, conditions and covenants of said notes; authorizing the City Manager to sell and deliver said notes to such purchasers with such dates, interest rates, maturities and other details as he shall determine consistent with this ordinance; amending Ordinance No. 2133 of the City; and declaring an emergency. WHEREAS, pursuant to Ordinance No. 2133, passed December 8, 1977, as amended by Ordinance No. 2148, passed January 16, 1978, the City of Yakima, Washington (the "City") has authorized the construction of certain additions and betterments to and extensions of the water and sewer system of the City; and WHEREAS, the City has, pursuant to an agreement for the settlement of certain pending litigation, incurred costs for the acquisition and construction of certain of such improvements, to wit, a waste water treatment facility, over and above the funds immediately available for the payment of such costs; and WHEREAS, the City is authorized by Chapter 16, Washington Laws, 1982, to issue short-term obligations in anticipation of the sale of its bonds, which short-term obligations mature in a period of not to exceed three years from the date thereof; and WHEREAS, it is deemed necessary and advisable that the City pay the costs referred to above through the issuance and sale of short-term obligations, in the form of bond anticipation notes of the City in the aggregate principal amount of not to exceed $3,100,000, pending the issuance and sale of water and sewer revenue bonds or limited tax levy general obligation bonds of the City; NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Yakima, Washington: ORDI A3 Section 1. Definitions. As used in this ordinance the following words shall have the following meanings: (a) "Bonds" means the revenue bonds, or limited tax levy general obligations bonds, to be issued to pay and 11/ redeem the Notes or any refunding notes. (b) "City" means the City of Yakima, Washington, a municipal corporation duly organized and existing under and by virtue of the Constitution and laws of the State of Washington. (c) "Council" means the Council of the City as the same shall be duly and regularly constituted from time to time. (d) "Note Redemption Fund" means the "1982 Bond Anticipation Note Redemption Fund," created by Section 7 of this ordinance. (e) "Notes" means the bond anticipation notes of the City to be issued pursuant to this ordinance in the aggregate principal amount of not to exceed $3,100,000 to pay and redeem the Warrants. (f) Project means the improvements to the water and sewer system of the City authorized by Ordinance No. 2133, passed December 8, 1977. Section 2. Authorization of the Notes. In anticipa- tion of the issuance of the Bonds, the City shall, for the purpose of paying costs of the Project, issue short-term obligations in the aggregate principal amount of not to exceed $3,100,000. Said short-term obligations shall be designated the "City of Yakima, Washington, Revenue Bond Anticipation Notes, Series 1982", shall be dated as of the 111h date of delivery thereof to the original purchaser or purchasers, shall be in bearer foim, shall be numbered, shall mature on April 30, 1983, and shall bear interest at a fixed or variable rate (as determined by the City Manager and, if a variable rate, computed as a percentage of the prime rate of Rainier Bank), payable at maturity or upon the prior redemption thereof. ORDI A4 The Notes shall be sold to such purchaser or purchasers, shall be in such denominations, shall mature on such date, and shall bear such rate of interest as shall be determined by the City Manager of the City in accordance with this ordinance. Interest may be computed on the basis of either a 360-day year or a 365-day year, as determined by the City Manager. The rate of interest on the Notes shall not exceed twelve percent (12%) per annum. The City shall be obligated to pay interest at the same rate for each Note from and after the maturity date thereof until such Note shall have been paid or until funds shall have been duly provided in the Note Redemption Fund hereinafter created for such payment in full. Both principal of and interest on the Notes shall be payable in lawful money of the United States of America at the office of the Finance Director of the City in Yakima, Washington. Section 3. Prior Redemption of the Notes. The Notes shall be subject to redemption at any time prior to maturity. The provisions for notice of call for redemption shall be set by the City Manager. Interest on the Notes so called for prior redemption shall cease upon such redemption date. Section 4. Form of the Notes. The Notes shall be in substantially the following form: UNITED STATES OF AMERICA NO. STATE OF WASHINGTON CITY OF YAKIMA REVENUE BOND ANTICIPATION NOTE, SERIES 1982 The City of Yakima, Washington (the "City"), a municipal corporation of the State of Washington, acknowledges itself to owe and for value received promises to pay to bearer, on , 19 the principal amount of DOLLARS unless prepaid sooner or provided herein, together with interest thereon at the rate of % per annum payable on maturity, or on the date of prepayment, or until such principal sum shall have been paid or payment duly provided for. ORDI A5 Both principal of and interest on this note are payable in lawful money of the United States of America at the office of the City Manager of the City of Yakima, Washington, out of the Note Redemption Fund created by Ordinance No. of the City (the "Note Ordinance"). Reference is made to the Note IL Ordinance for definitions of other defined terms used herein. The City has reserved the right to prepay and redeem any or all of the notes of this issue in numerical order at any time until maturity, at par, plus accrued interest to the date of redemption. This note is one of an issue of notes of like date and tenor except as to number and amount, in the aggregate principal amount of $3,100,000 and is issued pursuant to Ordinance No. of the City under and in strict compliance with the provisions of the Constitution and laws of the State of Washington. The City hereby irrevocably covenants to issue its water and sewer revenue bonds, or limited tax levy general obligation bonds, or refunding notes of the City in an amount which, with other money of the City legally available therefore, will be sufficient to pay the principal of and interest on the notes of this issue as the same shall become due. It is hereby certified and declared that this note is issued pursuant to and in strict compliance with the Constitution and laws of the of Washington and duly adopted ordinances of the City, and that all acts, conditions and things required to have happened, been done, and performed precedent to and in the issuance of this note have happened, been done and performed. IN WITNESS WHEREOF, the City of Yakima, Washington, has caused this note to be executed on behalf of the City by its Mayor, to be attested by its City Clerk, and the official seal of the City to be impressed hereon this day of December, 1982. CITY OF YAKIMA, WASHINGTON By go.' i Mayor ATTEST: City Clerk Section 5. Execution of Notes. The Notes shall be signed on behalf of the City by its Mayor, shall be attested by the City Clerk, and shall have the official seal of the City impressed thereon. Section 6. Application of Proceeds of Sale ofthe Notes. The principal proceeds of the sale of the Notes shall be paid into the Yakima Wastewater Facilities Project ORDI A6 Fund created by Ordinance No. 2123 of the City, passed on October 24, 1977, and applied to payment of costs of the Project. Section 7. Note Redemption Fund. There is hereby II/ created a special fund of the City to be known as the "1982 Bond Anticipation Note Redemption Fund," which Fund shall be drawn upon for the sole purpose of paying the principal of and interest on the Notes. The accrued interest, if any, received upon delivery of the Notes and the proceeds of sale of any refunding notes or the Bonds shall be deposited in such Fund. Any proceeds resulting from authorized temunrary investments of the Note Redemption Fund shall be used for the sole purpose of retiring the Notes or paying the interest thereon, or, after retirement of the Notes, for any lawful purpose. The City covenants that on or before the maturity date of the Notes it will sell and issue refunding notes or it will sell and issue the Bonds and deposit so much of the proceeds thereof into the Note Redemption Fund as is necessary to pay and redeem the Notes then outstanding, including accrued interest. The Notes and the interest thereon are secured by the full faith, credits, taxing powers and resources of the City. Section 8. Sale of Notes. The City Manager is hereby authorized and directed, and is hereby designated as the representative of the City, to act on behalf of the City, and subject to the terms of this ordinance, in selling and delivering the Notes in such manner and on such terms as shall be consistent with this ordinance. Upon the sale of the Notes the proper City officials are hereby authorized and directed to do everything necessary for the prompt issuance, execution and delivery thereof and for the proper application and use of the proceeds of such sale. ORDI A7 Section 9. Lost or Destroyed Notes. In case any Note secured by this ordinance shall be lost, stolen, or destroyed, the City may execute and the City Manager of the City may deliver a new note or notes of like amount, date, number, and tenor to the holder thereof upon the holder's paying the expenses and charges of the City in connection therewith, and upon his filing with the City Manager of the City evidence satisfactory to said City Manager that such note or notes were actually lost, stolen, or destroyed and of his ownership thereof, and upon furnishing the City with indemnity satisfactory to the City Manager. Section 10. Notes Not Arbitra2e Bonds. The City covenants and agrees with the holders of the Notes that no part of the proceeds of the Notes or any other funds of the City shall at any time be used directly or indirectly to acquire securities or obligations, the acquisition of which would cause any Note to become' an "arbitrage bond" as defined in Section 103 (c) of the Internal Revenue Code of 1954, as amended, and the applicable regulations promulgated thereunder, or to use or permit the use of the proceeds of the Notes in a manner which would cause any Note to become an "industrial development bond" as defined in Section 103(b) of the Internal Revenue Code of 1954, as amended. Section 11. Severability. If any one or more of the covenants or agreements provided in this ordinance to be performed on the part of the City shall be declared by any court of competent jurisdiction to be contrary to law, then such covenant or covenants, agreement or agreements, shall be null and void and shall be separable from the remaining covenants and agreements in this ordinance and shall in no way affect the validity of the other provisions of this ordinance or of the Notes. Section 12. Prior Acts. Any act taken pursuant to the authority of this ordinance but prior to its effective date is hereby ratified and confirmed. ORDI A8 • Section 13. Amendment of Ordinance No. 2133. Section 2 of Ordinance No. 2133 of the City, passed on December 8, 1977, is hereby amended to read as follows: "Section 2. The estimated cost of acquiring, constructing and installing the above-provided for plans of additions and improvements to the existing system of the City is hereby declared to be, as near as may be, the sum of $33,800,000. Part of such cost will be provided from anticipated grants from the United States and the State of Washington and from the proceeds of sale of water and sewer revenue bonds of the City in the principal amount of not to exceed $8,525,733, or so much thereof as is determined to be necessary by the City Council. The balance of such cost will be paid out of state and federal grants and other available funds. "As an integral part of the plan of acquiring, constructing and installing the above-provided for additions, improvements and extensions, the City shall issue and sell such water and sewer revenue bonds in such amount or amounts and at such time or times as this Council may determine to be to the best interest of the City and its inhabitants. The exact date or dates, form, terms, maturities and covenants of such bonds shall be as hereafter fixed by ordinance or ordinances of the City. "As an integral part of the plan of acquiring, constructing and installing the above-provided for additions, improvements and extensions, the City may borrow monies by agreement with agencies of the State of Washington in anticipation of such grants and bonds. The exact date or dates, terms, maturities and covenants of such loans and agreements shall be as hereafter fixed by ordinance or ordinances of the City." Section 14. Effective Date. Under the terms of the settlement agreement reached by the City in the pending litigation relating to the wastewater treatment plant, it is necessary that the proceeds of the Notes be available for payment of the City's obligations under such settlement agreement on December 30, 1982. Observance of such obligations and implementation of such settlement agreement is necessary to protect and preserve the essential financial interests of the City and for the welfare of the water and sewer utility of the City. Therefore, this ordinance is necessary to provide for the immediate preservation of the public peace, property, health and safety. An emergency is hereby declared to exist ORDI A9 . ' and this ordinance is designated an emergency ordinance and shall take effect immediately upon its final passage, approval and publication as provided by law and by the City Charter. PASSED at a regular meeting of the City Council held this 21st day of December, 1982. SIGNED this 22nd day of December, 1982. CITY OF YAKIMA, WASHINGTON B Aft„ d „,,, ■ MAYOR ATTEST: 7) ,,2 CITY CLERK APPROVED AS TO FORM: 7 CITY A TT • Y ORDI A10 * . , • - CLERK'S CERTIFICATION I, the undersigned, the duly chosen, qualified and alo acting Clerk of the City of Yakima, Washington, and keeper of the records of the Council of the City (herein called the "Council"), DO HEREBY CERTIFY: 1. That the attached Ordinance No. 2660 (herein called the "Ordinance") is a true and correct copy of an ordinance of the City, as finally adopted at a meeting of the Council held on the 21st day of December, 1982, and duly recorded in my office. 2. That said meeting was duly convened and held in all respects in accordance with law, and to the extent required by law, due and proper notice of such meeting was given; that a legal quorum was present throughout the meeting and a legally sufficient number of members of the Council voted in the proper manner for the adoption of said Ordinance; that all other requirements and proceedings incident to the proper adoption or passage of said Ordinance have been duly fulfilled, carried out and otherwise observed; and that I am authorized to execute this certificate. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City this 22nd day of December, 1982. Clerk, City of Yakima, Washington 111 ORDI All