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HomeMy WebLinkAbout1989-3202 CONSOLIDATION OF LOCAL IMPROVEMENT DISTRICTS e 1 ORDINANCE NO. 3202 . AN ORDINANCE OF THE CITY OF YAKIMA, WASHINGTON, PROVIDING FOR THE CONSOLIDATION OF LOCAL IMPROVEMENT DISTRICTS NOS. 1039, 1040, 1042, 1043, 1044, AND 1045 INTO CONSOLIDATED LOCAL IMPROVEMENT DISTRICT NO. 3; AUTHORIZING THE ISSUANCE AND SALE OF CONSOLIDATED LOCAL IMPROVEMENT DISTRICT NO. 3 BONDS IN THE AGGREGATE PRINCIPAL AMOUNT OF $611,567.84; PROVIDING THE FORM, TERMS, RATES, MATURITY, CONDITIONS AND COVENANTS OF SAID BONDS; PRO- VIDING FOR THE DISPOSITION OF THE PROCEEDS OF THEIR SALE; AND CONFIRMING THE SALE OF SUCH BONDS. WHEREAS, City of Yakima Local Improvement Districts Nos. 1039, 1040, 1042, 1043, 1044 and 1045 (the "Local Improvement III Districts ") were duly created by Ordinance Nos. 2884, 2885, 2973, 2984, 3045 and 3 031, respectively; and WHEREAS, the assessment rolls for the Local Improvement Districts have been confirmed in the manner required by law by the following Ordinances and in the following amounts: Ordinance Amount Confirming Amount of Amount of Unpaid LID No. Roll Assessment Prepaid Assessments 1039 3059 $147,247.65 $44,764.81 $102,482.84 1040 3029 46,368.00 25,275.20 21,092.80 1042 3065 36,761.30 7,352.26 29,409.04 1043 3086 24,080.00 5,050.00 19,030.00 1044 3091 54,722.52 .0 54,722.52 1045 3181 437,751.62 52,920.98 384,830.64 WHEREAS, for the purpose of issuing bonds, it is deemed necessary and desirable that the Local Improvement Districts be consolidated into a single local improvement district pursuant to RCW 35.45.160, and that the City issue Consolidated Local Improvement District No. 3 Bonds in an amount equal to $611,567.84 to pay part of the costs of the improvements made within the Local Improvement Districts; and WHEREAS, the City has received a written offer to purchase such Bonds from Seattle- Northwest Securities Corporation, and has determined that it is in the best interest of the City to sell such Bonds to Seattle- Northwest Securities Corporation pursuant to such offer. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE 4 110 CITY OF YAKIMA, WASHINGTON AS FOLLOWS: Section 1. Definitions. As used in this ordinance the following words shall have the following meanings: "Assessments" means the assessments levied in Local Improve- ment Districts Nos. 1039, 1040, 1042, 1043, 1044 and 1045 of the City by Ordinance Nos. 3059, 3029, 3065, 3086, 3091 and 3181, respectively, which assessments are pledged to be paid into the Bond Fund, including installments thereof and any interest and penalties due or which may become due thereon. "Bonds" means the City of Yakima Consolidated Local Improve- ment District No. 3 Bonds, authorized by this ordinance to be issued. -2 NMN149 89/09/18 "Bond Fund" means the Consolidated Local Improvement Dis- trict Bond Redemption Fund created by Section 2 of this ordinance. "Bond Register" means the books or records maintained by the Bond Registrar containing the name and mailing address of the owner of each Bond or nominee of such owner and the principal amount and number of Bonds owned by each owner or nominee. "Bond Registrar" means the fiscal agency of the State of Washington in either Seattle, Washington, or New York, New York, for the purposes of registering and authenticating the Bonds, maintaining the Bond Register, effecting the transfer of owner- ship of the Bonds and paying the principal of and interest on the 411/ Bonds as the same become due and payable. "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. "council" means the Council of the City as the same shall be duly and regularly constituted from time to time. "District" or "Local Improvement Districts" means Local Improvement Districts Nos. 1039, 1040, 1042, 1043, 1044 and 1045. "Guaranty Fund" means the Guaranty Fund of the City author- ized and maintained pursuant to RCW Ch. 35.54 and Ordinance No. 2465 of the City. Section 2. Consolidation of Districts. For the purpose of issuing bonds to finance part of the costs and expenses of -3- NMN149 89/09/18 1 improvements made in the Local Improvement Districts, the Dis- tricts are hereby consolidated into Consolidated Local Improve- ment District No. 3. A special fund of the City to be known as the Consolidated Local Improvement District No. 3 Bond Redemption Fund (the "Bond Fund ") is hereby authorized to be created by the City Finance Director. After payment in full of all outstanding warrants previously issued and all interfund loans previously made to provide funds for the making of improvements in the Local Improvement Districts, all money received by the City in payment of, penalties, if any, and interest on the assessments levied in Consolidated Local Improvement District No. 3, and all money, if any, on hand in the Local Improvement District No. 1039 Fund, the Local Improvement District No. 1040 Fund, the Local Improvement District No. 1042 Fund, the Local Improvement District No. 1043 Fund, the Local Improvement District No. 1044 Fund and the Local Improvement District No. 1045 Fund of the City shall be paid into the Bond Fund and used to pay the principal of and interest on the Bonds authorized by this ordinance, and as security for such payment the Bond Fund is hereby pledged. Section 3. Authorization of the Bonds For the purpose of financing part of the cost and expense of the improvements ordered by Ordinances Nos. 2884, 2885, 2973, 2984, 3045 and 3031 and constructed in Consolidated Local Improvement District No. 3, the City shall issue its Consolidated Local Improvement District 1 00 No. 3, 1989 Bonds (the "Bonds ") in the aggregate principal amount - 4 - NMN149 89/09/18 4011 i of $611,567.84. The Bonds shall be dated as of October 1, 1989, III shall be numbered in such manner and with any additional designa- tion as the Bond Registrar deems necessary for the purpose of identification and control, shall be in the denomination of $5,000 each or any integral multiple thereof except for Bond No. 1, which shall be in the denomination of $6,567.84 and shall bear interest from their date at the following rates: Bond Nos. Amounts Interest Rates 1 -23 $116,567.84 6.30% 24 -42 95,000.00 6.50 43 -60 90,000.00 6.65 61 -76 80,000.00 6.75 77 -89 65,000.00 6.85 90 -100 55,000.00 6.95 101 -109 45,000.00 7.00 410 110 -115 30,000.00 7.10 116 -119 20,000.00 7.20 120 -122 15,000.00 7.30 Interest shall be payable annually beginning October 1, 1990, and annually thereafter on the first day of October of each year. The Bonds shall mature October 1, 2001. The Bonds shall be obligations only of the Bond Fund and the Guaranty Fund of the City and shall not be general obligations of the City. Both the principal of and interest on the Bonds shall be payable in lawful money of the United States of America. Inter- est on the Bonds shall be paid by check or draft mailed to registered owners or assigns at the addresses appearing on the Bond Register as of the 15th day of the month preceding the interest payment date. Principal of the Bonds shall be payable -5- NMN149 89/09/18 upon presentation and surrender of the Bonds by the registered owners at the principal offices of the Bond Registrar. Section 4. Bond Register and Exchange of Bonds. The Bond Register shall be maintained by the Bond Registrar, and shall contain the name and mailing address of the owner or owners of each Bond or nominee of such owner or owners and the principal amount and number of Bonds held by each owner or nominee. Upon surrender thereof to the Bond Registrar, the Bonds are interchangeable for Bonds in any authorized denomination of an equal aggregate principal amount and of the same interest rate and maturity. Bonds may be transferred only if endorsed in the manner provided thereon and surrendered to the Bond Registrar. Such exchange or transfer shall be without cost to the owner or transferee. Section 5. Redemption. The Bonds shall be redeemed at par in advance of their scheduled maturity, by application of Assess- ments and prepayments thereof, in whole or in part in numerical order (by control number), on any interest payment date whenever there shall be sufficient money in the Bond Fund to pay the same and all Bonds which mature at such time, over and above an amount sufficient for the payment of the interest next accruing on all unpaid Bonds. The Bond Registrar shall maintain a system of numbering which shall permit reissued and /or transferred Bonds to be called in accordance with their original number at the time of issuance. -6- NMN149 89/09/18 e Notice of any such intended redemption shall be given not less than fifteen days nor more than sixty 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. The requirements of this section shall be deemed to be complied with when notice is mailed as herein provided regardless of whether or not it is actually received by the owner of any Bond. Interest on any Bond so called for redemption shall cease to accrue on the date fixed for redemption unless such Bond or Bonds so called are not redeemed upon presentation made pursuant to such call. 0 Section 6. Form of Bonds The Bonds shall be in substan- tially the following form: UNITED STATES OF AMERICA NO. $ STATE OF WASHINGTON CITY OF YAKIMA CONSOLIDATED LOCAL IMPROVEMENT DISTRICT NO. 3 BONDS, 1989 INTEREST RATE: % MATURITY DATE: October 1, 2001 Registered Owner: Principal Amount: Dollars Laws of Washington 1965, Chapter 7, § 35.45.070 provides, in part, as follows: - 7- 01N149 89/09/18 Neither the holder nor owner of any bond, interest coupon, or warrant issued against a local improvement fund shall have any claim therefor against the city or town by which it is issued, except for payment from the special assessments made for the improvement for which the bond or warrant was issued and except also for payment from the local improvement guaranty fund of the city or town as to bonds issued after the creation of a local improvement guar- anty fund of the city or town. The city or town shall not be liable to the holder or owner of any bond, interest coupon, or warrant for any loss to the local improvement guaranty fund occurring in the lawful operation thereof. The City of Yakima, Washington (the "City ") hereby acknowl- edges itself to owe and for value received promises to pay to the Registered Owner identified above from the Consolidated Local Improvement District No. 3 Bond Redemption Fund (the "Bond Fund ") created by Ordinance No. (the "Bond Ordinance "), the Prin- cipal Amount indicated above and to pay interest thereon from October 1, 1989, or the most recent date to which interest has been paid or duly provided for until payment of this bond at the Interest Rate set forth above, payable on October 1, 1990, and annually thereafter on the first day of each October. Both principal of and interest on this bond are payable in 4 10 lawful money of the United States of America. Interest shall be paid by mailing a check or draft to the Registered Owner or assigns at the address shown on the Bond Register as of the 15th day of the month prior to the interest payment date. Principal shall be paid to the Registered Owner or assigns upon presenta- tion and surrender of this bond at the principal office of the fiscal agency of the State of Washington in either Seattle, Washington, or New York, New York (collectively, the "Bond Regis- ter"). Reference is hereby made to additional provisions of this bond set forth on the reverse side hereof and such additional provisions shall for all purposes have the same effect as if set forth in this space. This bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Bond Ordinance until the Certificate of Authentication hereon shall have been manually signed by the Bond Registrar. It is hereby certified and declared that this bond and the bonds of this issue are issued pursuant to and in compliance with the Constitution and laws of the State of Washington and ordi- nances of the City, and that all acts, conditions and things -8- NHN149 89/09/18 required to be done precedent to and in the issuance of this bond have happened, been done, and performed. 1111 IN WITNESS WHEREOF, the City of Yakima, Washington, has caused this bond to be signed on behalf of the City with the manual or facsimile signature of its Mayor, to be attested by the manual or facsimile signature of its City Clerk, and the official seal of the City to be impressed or imprinted hereon this 1st day of October, 1989. CITY OF YAKIMA, WASHINGTON SEAL By c,4572 Mayor ATTEST: City Clerk CERTIFICATE OF AUTHENTICATION Date of Authentication: This bond is one of the bonds described in the within-men- tioned Bond Ordinance and is one of the Consolidated; Local Improvement District No. 3 Bonds, 1989 of the City of Yakima. ; WASHINGTON STATE FISCAL AGENCY Bond Registrar By Authorized Officer ADDITIONAL BOND PROVISIONS This bond is one of an authorized issue of bonds of like date and tenor, except as to number, interest rate, and amount in the aggregate principal amount of $611,567.84 (the "Bonds") 410 issued to provide a portion of the funds necessary for certain improvements within Local Improvement Districts Nos. 1039, 1040, 1042, 1043, 1044, and 1045 of the City. These Local Improvement Districts have been consolidated into Consolidated Local Improve- ment District No. 3 pursuant to RCW 35.45.160. 1 -9- NMN149 89/09/18 1 The Bonds are payable solely from the special fund of the City known as the "Consolidated Local Improvement District No. 3 Bond Redemption Fund" (the "Bond Fund") created pursuant to Ordinance No. of the City and out of the Local Improvement District Guaranty Fund of the City. The City has irrevocably obligated and bound itself to pay into the Bond Fund all assess- ments levied within Local Improvement Districts Nos. 1039, 1040, 1042, 1043, 1044 and 1045. The Bonds are not general obligations of the City. The Bonds have been designated as "qualified tax - exempt obligations" for purposes of Section 265(b) of the Internal Rev- enue Code of 1986. The Bonds are subject to redemption at a price of par in advance of their scheduled maturity, in whole or in part, in numerical order by control number, on any interest payment date whenever there shall be sufficient money in the Bond Fund to pay the same and all bonds of Local Improvement District No. 3 which mature at such time, over and above an amount sufficient for the payment of the interest next accruing on the unpaid Bonds of Consolidated Local Improvement District No. 3. 4011 Notice of any such intended redemption shall be given not less than fifteen nor more than sixty days prior to the redemp- tion date by first class mail, postage prepaid, to the registered owner of any Bond to be redeemed at the address appearing on the Bond Register. The requirements of the Bond Ordinance shall be deemed to be complied with when notice is mailed as herein pro- vided, regardless of whether or not it is actually received by the owner of any Bond. Interest on all of such Bonds so called for redemption shall cease to accrue on the date fixed for redemption unless such Bond or Bonds so called for redemption are not redeemed upon presentation made pursuant to such call. The Bonds are interchangeable for Bonds of any authorized denomination of equal aggregate principal amount and of the same interest rate and maturity upon presentation and surrender to the Bond Registrar. The City hereby covenants and agrees with the owner of this Bond that it will keep and perform all the covenants of this Bond and of the Bond Ordinance to be by it kept and performed. Refer- ence is hereby made to the Bond Ordinance for the definitions of 4 00 defined terms used herein. Reference to the Bond Ordinance and any and all modifica- tions and amendments thereto is made for a description of the -10- NNN149 89/09/18 nature and extent of the security for the Bonds, the funds or revenues pledged, and the terms and conditions upon which the 4111 Bonds are issued. ASSIGNMENT FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto PLEASE INSERT SOCIAL SECURITY OR TAXPAYER IDENTIFICATION NUMBER OF TRANSFEREE /_______ / (Please print or typewrite name and address, including zip code, of Transferee) the within bond and does hereby irrevocably constitute and appoint of , or its 4111 successor, as Bond Registrar to transfer said bond on thelbooks kept for registration thereof with full power of substitution in the premises. DATED: SIGNATURE GUARANTEED: NOTE: The signature on this Assignment must correspond with the name of the registered owner as it appears upon the face of the within bond in every particular, without alteration or enlargement or any change what- ever. The following abbreviations, when used in the inscription on the face of the within Bond, shall be construed as though they were written out in full according to applicable laws or 'regula- tions. III/ -11- NMN149 89/09/18 5 110 TEN COM - as tenants in common TEN ENT - as tenants by the entireties JT TEN - as joint tenants with right of survivorship and not as tenants in common UNIF GIFT MIN ACT - Custodian (Cust) (Minor) under Uniform Gifts to Minors Act (State) Abbreviations may also be used though not in list above. Section 7 Execution of Bonds. The Bonds shall be signed on behalf of the City by the manual or facsimile signature of the Mayor, shall be attested by the manual or facsimile signature of the City Clerk, and shall have the corporate seal of the City impressed or imprinted thereon. Only such Bonds as shall bear thereon a Certificate of Authentication in the form hereinbefore recited, manually executed by the Bond Registrar, shall be valid or obligatory for any purpose or entitled to the benefits of this ordinance. Such Certificate of Authentication shall be conclusive evidence that the Bonds so authenticated have been duly executed, authenticated and delivered hereunder and are entitled to the benefits of this ordinance. In case either of the officers who shall have executed the Bonds shall cease to be such officer or officers of the City before the Bonds so signed shall have been authenticated or deli- vered by the Bond Registrar, or issued by the City, such Bonds -12- NMN149 89/09/18 L r may nevertheless be authenticated, delivered and issued and upon such authentication, delivery and issuance, shall be as binding upon the City as though those who signed the same had continued to be such officers of the City. Any Bond may also be signed and attested on behalf of the City by such persons as at the actual date of execution of such Bond shall be the proper officers of the City although at the original date of such Bond any such person shall not have been such officer of the City. Section 8. Bond Registrar. The City hereby specifies and adopts the system of registration for the Bonds approved by the Washington State Finance Committee. The Bond Registrar shall keep, or cause to be kept, at its principal corporate trust office, sufficient books or records for the registration and transfer of the Bonds which shall at all times be open to inspec- tion by the City. The Bond Registrar is authorized, on behalf of the City, to authenticate and deliver the Bonds transferred or exchanged in accordance with the provisions of such Bonds and this ordinance and to carry out all of the Bond Registrar's pow- ers and duties under this ordinance. The Bond Registrar shall be responsible for its representa- tions contained in the 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 4110 to the extent peiwitted by law, may act as depositaryifor and pezmit any of its officers or directors to act as a member of, or - 13 - 0N149 89/09/18 A r x r � in any other capacity with respect to, any committee formed to protect the rights of owners of the Bonds. Section 9. Defeasance In the event that money and /or "Government Obligations" (as now or hereafter defined in RCW Ch. 39.53 or its successor statute, if any) maturing at such time or times and bearing interest to be earned thereon in amounts (to- gether with such money if necessary) sufficient to redeem and retire the Bonds or any of them in accordance with their terms are set aside in a special account to effect such redemption or retirement and such money and /or the principal of and interest on such obligations are irrevocably set aside and pledged for such purpose, then no further payments need be made into the Bond Fund for the payment of the principal of and interest on the Bonds so 4 10 provided for, and the owners of such Bonds shall cease to be entitled to any lien, benefit or security of this ordinance except the right to receive the funds so set aside and pledged, and such Bonds shall be deemed not to be outstanding hereunder. Section 10. Bonds to Remain Tax Exempt: Nonarbitrage. The City covenants with the owners of the Bonds that it will not use or invest the proceeds of the Bonds or any other funds of the City for any purpose or in any manner or take any other action that would cause the Bonds to be "arbitrage bonds" as defined in Section 148 of the Internal Revenue Code of 1986, as amended, and the applicable regulations promulgated thereunder, or would result in interest on the Bonds becoming taxable income to the -14 NMN149 89/09/18 j owners thereof under Section 103 of the Internal Revenue Code of 1110 1986, as amended, or any other federal tax legislation that may be enacted into law. Section 11. Bonds Designated "Qualified Tax - Exempt Obliga- tions." The Bonds are hereby designated as "qualified tax - exempt obligations" for purposes of Section 265(b) of the Internal Rev- enue Code of 1986. Section 12. Lost or Destroyed Bonds. In case the Bonds or any of them shall be lost, stolen or destroyed, the Bond Registrar may execute and deliver a new Bond or Bonds of like amount, date, and tenor to the registered owner thereof upon the owner's paying the expense and charges of the City and the Bond 410 Registrar in connection therewith and upon his /her filing with the Finance Director of the City and the Bond Registrar evidence satisfactory to said Finance Director and Bond Registrar that such Bond or Bonds were actually lost, stolen or destroyed and of his /her ownership thereof, and upon furnishing the City and Bond Registrar with indemnity satisfactory to such Finance Director and Bond Registrar. Section 13. Payment of Assessments and Interest on Assess- ments. The City has heretofore levied Assessments payable into the various funds created for the Districts in the total amounts listed below, of which the following amounts were prepaid prior • 1 to the passage of this ordinance and the remaining amounts are } -15- NMN 149 89/09/18 1 1 1 payable in ten equal annual installments from the end of the 30- day prepayment period together with interest and penalties thereon in the manner and at the times specified in the ordinance confirming the assessment rolls for the various Districts: Ordinance Amount Confirming Amount of Amount of Unpaid LID No. Roll Assessment Prepaid ,Assessments 1039 3059 $147,247.65 $44,764.81 $102,482.84 1040 3029 46,368.00 25,275.20 21,092.80 1042 3065 36,761.30 7,352.26 29,409.04 1043 3086 24,080.00 5,050.00 19,030.00 1044 3091 54,722.52 .0 54,722.52 1045 3181 437,751.62 52,920.98 384,830.64 The balance of Assessments remaining unpaid at the end of the thirty -day prepayment period shall bear interest at the following rates: Interest Rate on LID No. Unpaid Assessments 1039 10.00% 1040 8.50% 1042 10.00% 1043 9.00% 1044 9.00% 1045 8.27% Both principal of and interest on the Bonds are payable solely out of the Bond Fund and from the Local Improvement Guaranty Fund of the City. Section 14. Sale of Bonds. The sale of the Bonds to Seattle- Northwest Securities Corporation, Seattle, Washington, at -16- NMN149 89/09/18 4010 BectiQp 14. Bale of Bonds. The sale of the Bonds to 4111 $eattre- Northwest Securities Corporation, Seattle, Washington, at the price and pursuant to the terms and conditions set forth herein and in their offer dated September , 1989, is hereby in all respeate ratified and confirmed. Upon the sale of the Bonds, the appropriate City officials are hereby authorized to do everything necessary for the prompt printing, issuance and delivery of the Bonds and the proper application of the proceeds thereof. Section 13. Implication of proceeds. Accrued interest, if any, on the Bonds shall be deposited in the Bond Fund and shall 411 be applied to the payment of interest first coming due on the Bonds. The inai al proceeds of the Bonds shall be deposited pr p p as follows: Looal Improvement District No. 1039 Fund $102,482.84 Looal Improvement District No. 1040 Fund 21,092.80 Local Improvement District No. 1042 Fund 29,409.04 Local Improvement District No. 1043 Fund 19,030.00 Local Improvement District No. 1044 Fund 54,722.52 Local improvement District No. 1045 Fund 384,830.64 The proceeds of the Bonds, together with other money in said Funds, shall be used to pay and redeem the warrants outstanding against said Funds, to repay any outstanding interfund loans or installment notes, to pay any remaining costs of improvements -17- WMk149 89/09/15 approval and publication as provided by law and by City Charter.; PASSED BY THE COUNCIL AND SIGNED AND APPROVED this 19th day of September, 1989. CITY OF YAKIMA C;2125 MAYOR ATTEST: CITY CLERK PUBLISHED: 9/22/89 4 111 EFFECTIVE DATE: 1 0/23/89 -18- NMN149 89/09/18 CLERK'S CERTIFICATE • I, the undersigned, the duly chosen, qualified and acting Clerk of the City of Yakima, Washington (the 'City'), and keeper of the records of the Council of the City (herein called the 'Council'), DO HEREBY CERTIFY: 1. That the attached Ordinance No. (herein called the 'Ordinance') is a true and correct copy of an ordinance of the City, as finally passed at a regular meeting of the Council held on the day of September, 1989 and duly recorded in my office. 2. That said meeting was duly convened and held in all 41 respects in accordance with law, and to the extent required by law, due and proper notice of such meeting was given; that a quorum was present throughout the meeting and a legally sufficient number of members of the Council voted in the proper manner for the passage of the Ordinance; that all other requirements and proceedings incident to the proper passage of the 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 day of September, 1989. 4110 City Clerk City of Yakima, Washington (S E A L) -1- NMN149 89/09/01 4110