HomeMy WebLinkAbout07/15/2008 17 Issuance of Limited Tax General Obligation Bonds; Street/Traffic Infrastructure; Fire Truck Purchase BUSINESS OF THE CITY COUNCIL
0 YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. I 17
For Meeting of July 15,2008
ITEM TITLE: An Ordinance of the City of Yakima providing for the issuance of a principal sum
. not to exceed $3.5 million of Limited Tax General Obligation Bonds to finance street and traffic
infrastructure improvements and to acquire a fire truck; providing the form and terms of the
bonds; and authorizing the City Manager and the Director of Finance and Budget to approve
the final terms and execute documents necessary to complete the sale of the bonds.
SUBMITTED BY: Finance Department
CONTACT PERSON/TELEPHONE: Rita DeBord, Finance Direct
o$ 1-1s
Tim Jensen, Treasury Services Offi4
SUMMARY EXPLANATION: On June 10, 2008, the Council approved a Staff report authorizing
0 certain pedestrian crossings, street and other infrastructure projects, the purchase of a new
ladder fire truck, and the financing thereof. The infrastructure projects and the fire truck will be
financed by a combination of available cash reserves, an outside agency contribution and
proceeds from the issuance of these Limited Tax General Obligation (LTGO) Bonds.
Continued....
. Resolution _ Ordinance X Other (Specify) Preliminary Amortization Schedules
Contract Mail to (name and address): .
Funding Source
APPROVED FOR SUBMITTAL: �� ��
it Manager
er 9
STAFF RECOMMENDATION: Pass Ordinance
BOARD /COMMISSION RECOMMENDATION: Fire Truck purchase w approved by the Public Safety
Committee and the Downtown Futures Initiative Oversight Committee approved the infrastructure projects to be
forwarded to the full Council.
COUNCIL ACTION:
411 ‘
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Council. Agenda Statement — 2008 LTGO Bonds, cont.
To quickly recap, the following infrastructure projects, fire apparatus and financing plan
•
previously authorized by Council is as follows:
Project Financed Cost
• Grind and overlay (3 Ave., Mead to Chestnut) $ 1,400,000
• Signal at N. 66 Ave. and Summitview 350,000 •
• Pedestrian Crossing: -4 St. & MLK Jr. Blvd. 150,000
• Pedestrian Crossing: 16 Ave. and Bonnie Doone 150,000
Sub -total (LTGO Bonds as approved in 2008 Adopted Budget) $ 2,050,000
• Pedestrian Crossing: 16 Ave. & Hathaway $130,000
(Note: $120,000 additional funding will be provided by DSHS)
• Fire Ladder Truck - (Total cost is $1 million) 750,000
($150,000 - General Fund reserves and $100,000 - Fire Cap. reserves)
Total for 2008 LTGO Bond Issue (estimated): $2,930.000*
* Note: to allow for changes in estimates and market conditions,,the authorized maximum
amount for the bonds is set at $3.5 Million.
Infrastructure Projects: Debt service on the above infrastructure projects will be provided by
50% REET 1 and 50% REET 2 revenues and is'estimated to be very close to the. $250,000
' annual estimate projected in the 2008 Budget Policy Issue. However, the policy issue stated
that the term of the bonds would be ten years; the bond term has been increased to 11 years in
order to accommodate market conditions and the additional $130,000 financing for the 16 and •
Hathaway Pedestrian crossing and still maintain the $250,000 annual debt service estimate.
Staff is also proposing a small December 2008 principal payment of approximately $61,500
($30,750 from each REET fund) be made on this bond issue in order to minimize total interest
costs and to achieve the shortest bond term and budgeted debt service levels. Although each
REET Fund has $25,000 budgeted in .2008 for debt service (for a total of $50,000), the
additional payment required in each fund ($5,750) will not require a budget appropriation, as
both funds have contingency budgets available.
The Fire Ladder Truck: Total purchase cost is approximately $1 million; of that amount,
$150,000 will be provided from General Fund Reserves, and $100,000 will be provided from
Fire Capital Fund Reserves. (Note: the budget appropriation for the transfer of General Fund
Reserves to Fire Capital was submitted to Council on July 1st and is scheduled for a second
reading and Council approval at the July 15 Council meeting). The $1 million total cost of the
truck itself was Appropriated in the Fire Capital Fund, and included in the 2008 Adopted
Budget. The remaining $750,000 purchase price of the truck, after reserve contributions -
$250,000 - will be provided from these LTGO Bond proceeds.
Page2of4
Council Agenda Statement — 2008 LTGO Bonds, cont.
40 Note: Debt service on the fire truck was budgeted to be paid from REET 1 Resources. After
further research, it was determined that REET1 Resources were not eligible for the purchase of
Fire apparatus; therefore, staff proposed, and Council previously authorized:
1) Property tax revenues budgeted to pay debt service on the 2007 bonds issued to expand
the W.V. Fire Station to be used for debt service on these 2008 bonds, and
(2) The REET 1 funds will be used to pay the debt service on the 2007 Fire Station bonds.
Debt service on both the 2007 and the 2008 bonds is estimated to be very similar,
approximately $75,000 annually. The 2007 LTGO Bonds will retire in May 2022 and the 2008
Bonds, which have a 13 -year maturity, will retire in December 2021.
A December 2008 principal payment of approximately $18,000 will be required to meet the
desired bond terms and debt service limitations. This will not require a budget appropriation,
as the Property Tax allocation was included in the 2008 adopted Budget, but originally
designated for repayment of the 2007 W.V. Fire Station Bonds (see discussion above).
Terms, Form and Covenants of Bonds:
The form and covenants of the proposed bonds are described in the bond ordinance, for
Council review and consideration. Other specific details — such as the actual interest rates, the
final structure of the bonds, insurance costs, etc. will not be known until the bonds are placed in
the market. Council's approval of this bond ordinance authorizes staff to set the terms and
0 conditions of the bond sale, within the parameters set in the ordinance, as we continue through
the bond issuance process. Once the bond pricing is concluded and a purchase offer is made,
specific terms and conditions will be known. Normally, at this point, staff prepares all of this
information in the form of the bond purchase / sale resolution and submits this to Council for
final approval. However, due to circumstances outside of staffs control (as outlined below), we
are not able to proceed in the normal manner with this bond issue and staff is proposing a
different process. -
Note: The underwriters require that Council accept or reject their purchase offer within
24 hours of when the offer is made; this means that Council must meet and formally
accept the purchase offer within this 24 hour timeframe or the offer automatically
expires. This is standard procedure, as the underwriters cannot legally conclude the
sale until Council authorizes the purchase agreement and since the bond market can
change quickly, the underwriters minimize their exposure by limiting their offer to a 24-
" hour time period.
Normally, this is not an issue as staff schedules the bond pricing (purchase offer) date on a
Council business meeting date. However, due to scheduling conflicts between Council's
regular business meetings and available and attractive dates to enter the market (for example:
holidays, the underwriters availability and the cash flow needs of the various projects) an
acceptable bond pricing date that coincides with a Council business meeting date is not
available. Therefore, staff is proposing that Council set the general parameters under which
the bonds may be issued and delegate authority for the specific terms and conditions and for
0 the final documents to complete the bond sale to the City Manager and the Director of Finance
and Budget. The attached Ordinance includes language to accomplish this delegation.
Page 3 of 4
Council Agenda Statement — 2008 LTGO Bonds, cont. ,
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The attached Ordinance was prepared by the City Bond Counsel, KL Preston, Gates; if
approved by Council, this Ordinance would set the general parameters for the bond issue
(examples; the maximum principal amount that may be borrowed, the maximum interest rates, -
the purpose and use of the bond proceeds, bond denominations, the bond underwriters, dates
of interest / principal payments, pledging the full faith and credit of the City, etc:) and would also
authorize the delegation of authority to finalize the specific terms and conditions of the bond
sale to the City Manager and the Finance Director: The authority to set the specific terms and
conditions of the bond sale — within the parameters authorized by Council in the ordinance —
includes authority to finalize the Preliminary Official Statement (POS), the Official Statement
and any /all other legal documents necessary or desirable to execute the bond sale — including
the authority to execute a purchase / sale agreement - without obtaining further Council
authorizations.
Staff will, of course, provide a complete report to Council of the final terms and conditions, the
POS, and the purchase / sale agreement at the next regularly scheduled Council business
meeting after the sale date for the bonds.
The attached Ordinance, if approved by Council, would among other things, authorize the
following: -
❖ $3.5 million — maximum principal amount of bond issue
❖ 5.0 % - maximum Total Interest Costs, includes insurance, legal and underwriting costs,
on the total bond issue,
o 4.31 % - staffs estimated Total Interest Costs, based on current market
conditions.
Staff Recommendation:
Staff respectfully requests Council pass this Ordinance authorizing the issuance of the 2008
LTGO Bonds and the delegation of authority.
Enclosed, please find:
1. Bond Ordinance, and
2. Preliminary Amortization (debt service) Schedules for
a. The Fire Ladder Truck, "
b. Miscellaneous Infrastructure projects
c. Combined — fire truck and infrastructure projects
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Page4of4
BOND DEBT SERVICE
City of Yakima, Washington .
Proposed LTGO Bonds, 2008 -
Current insured BQ interest rates
Fire Ladder Truck Project
Dated Date 09/04/2008
Delivery Date 09/04/2008
Period Annual
Ending Principal Coupon Interest Debt Service Debt Service
12/01/2008 10,000 4.000% 7,443.33 17,443.33 17,443.33
06/01/2009 15,200.00 15,200.00
12/01/2009 45,000 4.000% 15,200.00 60,200.00 75,400.00
06/01/2010 14,300.00 14,300.00
12/01/2010 45,000 4.000% 14,300.00 59,300.00 73,600.00
06/01/2011 13,400.00 13,400.00
12/01/2011 50,000 4.000% 13,400.00 63,400.00 76,800.00
06/01/2012 12,400.00 12,400.00
12/01/2012 . 50,000 4.000% 12,400.00 62,400.00 74,800.00
06/01/2013 11,400.00 11,400.00
12/01/2013 55,000 4.000% 11,400.00 66,400.00 77,800.00
06/01/2014 10,300.00 10,300.00
12/01/2014 55,000 4.000% 10,300.00 65,300.00 75,600.00
06/01/2015 9,200.00 9,200.00
12/01/2015 60,000 4.000% 9,200.00 69,200.00 78,400.00
06/01/2016 8,000.00 8,000.00
12/01/2016 60,000 4.000% 8,000.00 68,000.00 76,000.00
06/01/2017 6,800.00 6,800.00
12/01/2017 60,000 4.000% 6,800.00 66,800.00 73,600.00
06/01/2018 5,600.00 5,600.00
12/01/2018 65,000 4.000% 5,600.00 70,600.00 76,200.00
06/01/2019 4,300.00 4,300.00
12/01/2019 70,000 4.000% 4,300.00 74,300.00 78,600.00
06/01/2020 2,900.00 2,900.00
12/01/2020 70,000 4.000 % 2,900.00 72,900.00 75,800.00
06/01/2021 - 1,500.00 1,500.00
12/01/2021 75,000 4.000% 1,500.00 76,500.00 , 78,000.00
770,000 23 8,043.33 1,008,043.33 1,008,043.33
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Jun 27, 2008 9:54 am Prepared by Seattle - Northwest Securities Corp - JMW (k: \analysis \dbc \city \Yakima:2008LTGO) Page 5
BOND DEBT SERVICE 0
City of Yakima, Washington
Proposed LTGO Bonds, 2008
Current insured BQ interest rates
Miscellaneous Projects
Dated Date 09/04/2008
Delivery Date 09/04/2008
Period Annual
Ending Principal Coupon Interest Debt Service Debt Service
12/01/2008 40,000 4.000% 21,411.67 61,411.67 61,411.67
06/01/2009 43,500.00 43,500.00
12/01/2009 160,000 4.000% 43,500.00 203,500.00 247,000.00
06/01/2010 40,300.00 40,300.00
12/01/2010 170,000 4.000% 40,300.00 210,300.00 250,600.00
06/01/2011 36,900.00 36,900.00
12/01/2011 175,000 4.000% 36,900.00 211,900.00 248,800.00
06/01/2012 33,400.00 33,400.00
12/01/2012 180,000 4.000% 33,400.00 213,400.00 246,800.00
06/01/2013 29,800.00 29,800.00
12/01/2013 190,000 4.000% 29,800.00 219,800.00 249,600.00
06/01/2014 26,000.00 26,000.00
12/01/2014 195,000 4.000% 26,000.00 221,000.00 247,000.00
06/01/2015 22,100.00 22,100.00
12/01/2015 205,000 ' 4.000% 22,100.00 227,100.00 249,200.00
06/01/2016 18,000.00 18,000.00
12/01/2016 210,000 4.000% 18,000.00 228,000.00 246,000.00 1
06/01/2017 13,800.00 13,800.00
12/01/2017 220,000 4.000% 13,800.00 233,800.00 247,600.00
06/01/2018 9,400.00 9,400.00
12/01/2018 230,000 4.000% 9,400.00 239,400.00 248,800.00
06/01/2019 4,800.00 4,800.00
12/01/2019 240,000. 4.000% 4,800.00 244,800.00 249,600.00
2,215,000 577,411.67 2,792,411.67 2,792,411.67
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Jun 27, 2008 9:54 am Prepared by Seattle - Northwest Securities Corp - JMW (k:\ analysis \dbc \city \Yakima:2008LTGO) Page 4
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BOND DEBT SERVICE
City of Yakima, Washington I
Proposed LTGO Bonds, 2008 - Cornia i n �d
Dated Date 09/04/2008
Delivery Date 09/04/2008
Annual
Period Debt Debt
Ending Principal Coupon Interest Service Service
12/01/2008 50,000 4.000% 28,855 78,855 78,855
06/01/2009 58,700 58,700
12/01/2009 205,000 ' 4.000% 58,700 263,700 322,400
06/01/2010 54,600 54,600
12/01/2010 215,000 4.000% 54,600 269,600 324,200
06/01/2011 50,300 50,300
12/01/2011 225,000 4.000% 50,300 275,300 325,600
06/01/2012 45,800 45,800
12/01/2012 230,000 4.000% 45,800 275,800 321,600
06/01/2013 41,200 41,200
12/01/2013 245,000 4.000% 41,200 286,200 327,400
06/01/2014 36,300 36,300
12/01/2014 250,000 4.000 % 36,300 286,300 322,600
06/01/2015 31,300 31,300
12/01/2015 • - 2 4.000% 31,300. 296,300 327,600
06/01/2016 26,000 26,000
0 12/01/2016 270,000 4.000% 26,000 296,000 322,000
06/01/2017 20,600 20,600
12/01/2017 280,000 4.000% 20,600 300,600 321,200
06/01/2018 15,000 15,000
12/01/2018 295,000 4.000% 15,000 310,000 325,000
06/01/2019 9,100 9,100
12/01/2019 310,000 4.000% 9,100 319,100 328,200
06/01/2020 2,900 2,900
12/01/2020 70,000 4.000% 2,900 72,900 75,800
06/01/2021 1,500 1,500
12/01/2021 75,000 4.000% 1,500 76,500 78,000
2,985,000 815,455 3,800,455 3,800,455
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Jun 27, 2008 9:54 am Prepared by Seattle - Northwest Securities Corp - JMW (k: \analysis \dbc \city \Yakima:2008LTGO) Page 3
• ORDINANCE NO.
AN ORDINANCE of the City of Yakima, Washington, providing for
the issuance of limited tax general obligation bonds of the City in
the principal sum of not to exceed $3,500,000 to finance pedestrian
crossing, street and other infrastructure improvements and to
acquire a fire truck; providing the form and terms of the bonds; and
delegating the authority to approve the final terms of the bonds.
WHEREAS, the City Council of the City of Yakima, Washington (the "City ") has
determined that it is in the best interest of the City to complete pedestrian crossing, street and
other infrastructure improvements within the City and to acquire a fire ladder truck (the
"Projects "); and
WHEREAS, it appears to the City Council that it is in the best interest of the City that it
authorize the issuance of limited tax general obligation bonds to be sold in the aggregate
,
0 principal amount of not to exceed $3,500,000 to finance the Projects;
NOW, THEREFORE, BE IT ORDAINED BY the City of Yakima, Washington, as
follows:
SECTION 1. Definitions. As used in this ordinance, the following words shall have the
following meanings, unless a different meaning clearly appears from the context:
"Bond Register" means the registration records for the Bonds maintained by the Bond
Registrar.
"Bond Registrar" means the fiscal agency of the State of Washington, currently The Bank
of New York Mellon in New York, New York, for the purposes of registering and authenticating
the Bonds, maintaining the Bond Register, effecting transfer of ownership of the Bonds and
paying principal of and interest on the Bonds.
III "Bonds" means the not to exceed $3,500,000 principal amount of the City of Yakima,
Washington, Limited Tax General Obligation Bonds, 2008, issued pursuant to this ordinance.
"CEDE & Co." means the nominee of The Depository Trust Company.
0
"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.
"City Council" means the legislative authority of the City as the same shall be duly and
regularly constituted from time to time.
"Code" means the Internal Revenue Code of 1986, as amended, together with
corresponding and applicable final, temporary or proposed regulations and revenue rulings
issued or amended with respect thereto by the United States Treasury Department of the Internal
Revenue Service, to the extent applicable to the Bonds.
"Debt Service Fund" means the "LTGO Debt Service Fund, 2008" authorized to be
created by Section 6.
0 "DTC" means The Depository trust Company of New York, as depository for the Bonds,
or any successor or substitute depository for the Bonds.
"Federal Tax Certificate" means the certificate executed by the Director of Finance and
Budget or her designee setting forth the requirements of the Code for maintaining the
tax - exemption of interest on the Bonds.
"Letter of Representations" means the Blanket Letter of Representations from the City to
DTC.
"MSRB" means the Municipal Securities Rulemaking Board or any successor to its
functions.
"NRMSIR" means a nationally - recognized municipal securities information repository.
ID
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0 "Projects" mean pedestrian crossing, street and infrastructure improvements; the
acquisition of a fire ladder truck; and /or other capital projects as may be authorized by the City
Council.
"Registered Owner" means the person in whose name a Bond is registered on the Bond
Register. For so long as the City utilizes the book -entry system for the Bonds, DTC shall be
deemed to be the Registered Owner.
"Rule" means the Securities and Exchange Commission's Rule 15c2 -12 under the
Securities Exchange Act of 1934.
"SID" means a state information repository for the State of Washington (if one is
created).
"Underwriter" means Seattle- Northwest Securities Corporation, Seattle, Washington.
• SECTION 2. Findings and Authorization of Projects. The City Council hereby finds that
it is in the public interest for the City to undertake the Projects. The cost of the Projects will be
financed in part from the proceeds of sale of the Bonds. If the City Council shall determine that
it has become impractical to acquire any portion of the Projects by reason of changed conditions,
the City shall not be required to acquire such portions of the Projects. If all of the Projects have
been acquired or constructed or duly provided for, or found to be impractical, the City Council
may apply the Bond proceeds or any portion thereof to the redemption of the Bonds or to other
capital purposes as the City Council, in its discretion, shall determine.
SECTION 3. Authorization of Bonds. The City shall issue and sell the Bonds in the
aggregate principal amount of not to exceed $3,500,000 to provide money to finance the Projects
and to pay all costs incidental thereto and to the issuance of the Bonds. The Bonds shall be
• general obligations of the City; shall be designated "City of Yakima, Washington, Limited Tax
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General Obligation Bonds, 2008 "; shall be dated their date of delivery; shall be issued in fully
ID
registered form in the denomination of $5,000 or any integral multiple thereof, provided that no
Bond shall represent more than one maturity; shall be numbered separately and in such manner
and with any additional designation as the Bond Registrar deems necessary for purposes of
identification and control; and shall bear interest (calculated based on a 360 -day year of
12 30 -day months) from their date, payable on December 1, 2008, and semiannually thereafter
on the first days of each June and December and shall mature on December 1 in the years and
principal amounts set forth and approved in the Bond Purchase Contract executed by the City
Manager or the Director of Finance and Budget pursuant to Section 13 of this ordinance.
SECTION 4. Registration, Exchange and Payments.
(a) Registrar /Bond Register. The City hereby adopts the system of
registration approved by the Washington State Finance Committee, which utilizes the fiscal
agency of the State of Washington in New York, New York, as registrar, authenticating agent,
paying agent and transfer agent (the "Bond Registrar "). The Bond Registrar shall keep, or cause
to be kept, at its principal corporate trust office, sufficient records for the registration and transfer
of the Bonds (the "Bond Register "), which shall be open to inspection by the City. The Bond
Registrar is authorized, on behalf of the City, to authenticate and deliver 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 powers and duties under this ordinance. The Bond Registrar shall be
responsible for its representations contained in the Certificate of Authentication on the Bonds.
(b) Registered Ownership. The City and the Bond Registrar may deem and
treat the Registered Owner of each Bond as the absolute owner for all purposes, and neither the
0 City nor the Bond Registrar shall be affected by any notice to the contrary. Payment of any such
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0 Bond shall be made only as described in Section 4(h) hereof, but such registration may be
transferred as herein provided. All such payments made as described in Section 4(h) shall be
valid and shall satisfy the liability of the City upon such Bond to the extent of the amount or
amounts so paid.
(c) DTC Acceptance /Letter of Representations. The Bonds shall initially be
held in fully immobilized form by DTC acting as depository. To induce DTC to accept the
Bonds as eligible for deposit at DTC, the City has heretofore executed and delivered to DTC a
Blanket Issuer Letter of Representations (the "Letter of Representations ").
Neither the City nor the Bond Registrar will have any responsibility or obligation to DTC
participants or the persons for whom they act as nominees with respect to the Bonds for the
accuracy of any records maintained by DTC or any DTC participant, the payment by DTC or any
• DTC participant of any amount in respect of the principal of or interest on Bonds, any notice that
is permitted or required to be given to Registered Owners under this ordinance (except such
notices as shall be required to be given by the City to the Bond Registrar or to DTC), the
selection by DTC or any DTC participant of any person to receive payment in the event of a
partial redemption of the Bonds, or any consent given or other action taken by DTC as the
Registered Owner. For so long as any Bonds are held in fully immobilized form hereunder, DTC
or its successor depository shall be deemed to be the Registered Owner for all purposes, and all
references in this ordinance to the Registered Owners shall mean DTC or its nominee and shall
not mean the owners of any beneficial interest in any Bonds.
(d) Use of Depository.
(i) The Bonds shall be registered initially in the name of CEDE &
41110 Co., as nominee of DTC, with a single Bond for each maturity in a denomination equal to the
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total principal amount of such maturity. Registered ownership of such immobilized Bonds, or
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any portions thereof, may not thereafter be transferred except (A) to any successor of DTC or its
nominee, provided that any such successor shall be qualified under any applicable laws to
provide the service proposed to be provided by it; (B) to any substitute depository appointed by
the City pursuant to subsection (ii) below or such substitute depository's successor; or (C) to any
person as provided in subsection (iv) below.
(ii) Upon the resignation of DTC or its successor (or any substitute
depository or its successor) from its functions as depository or a determination by the City to
discontinue the system of book entry transfers through DTC or its successor (or any substitute
depository or its successor), the City may appoint a substitute depository. Any such substitute
depository shall be qualified under any applicable laws to provide the services proposed to be
provided by it.
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(iii) In the case of any transfer pursuant to clause (A) or (B) of
subsection (i) above, the Bond Registrar shall, upon receipt of all outstanding Bonds, together
with a written request on behalf of the City, issue a single new Bond for each maturity then
outstanding, registered in the name of such successor or substitute depository, or its nominee, all
as specified in such written request of the City.
(iv) In the event that (A) DTC or its successor (or substitute depository
or its successor) resigns from its functions as depository, and no substitute depository can be
obtained, or (B) the City determines that it is in the.best interest of the beneficial owners of the
Bonds that the Bonds be provided in certificated form, the ownership of such Bonds may then be
transferred to any person or entity as herein provided, and shall no longer be held in fully
0 immobilized form. The City shall deliver a written request to the Bond Registrar, together with a
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0 supply of definitive Bonds in certificated form, to issue Bonds in any authorized denomination.
Upon receipt by the Bond Registrar of all then outstanding Bonds, together with a written request
on behalf of the City to the Bond Registrar, new Bonds shall be issued in the appropriate
denominations and registered in the names of such persons as are provided in such written
request.
(e) Transfer or Exchange of Registered • Ownership; Change in
Denominations. The registered ownership of any Bond may be transferred or exchanged, but no
transfer of any Bond shall be valid unless it is surrendered to the Bond Registrar with the
assignment form appearing . on such Bond duly executed by the Registered Owner or such
Registered Owner's duly authorized agent in a manner satisfactory to the Bond Registrar. Upon
such surrender, the Bond Registrar shall cancel the surrendered Bond. and shall authenticate and
ill deliver, without charge to the Registered Owner or transferee, a new Bond (or Bonds at the
option of the new Registered Owner) • of the same date, maturity and interest rate and for the
same aggregate principal amount in any authorized denomination, naming as Registered Owner
the person or persons listed as the assignee on the assignment form appearing on the surrendered
Bond, in exchange for such surrendered and canceled Bond. Any Bond may be surrendered to
the Bond Registrar and exchanged, without charge, for an equal aggregate principal amount of
Bonds of the same date, maturity and interest rate, in any authorized denomination. The Bond
Registrar shall not be obligated to transfer or exchange any Bond during a period beginning at
the opening of business on the 15th day of the month next preceding any interest payment date
and ending at the close of business on such interest payment date, or, in the case of any proposed
redemption of the Bonds, after the mailing of notice of the call of such Bonds for redemption.
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(f) Bond Registrar 's Ownership of Bonds. The Bond Registrar may become
the Registered Owner of any Bond 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 member of, or in any other capacity with respect to, any committee
formed to protect the rights of the Registered Owners of the Bonds.
(g) Registration Covenant. The City covenants that, until all Bonds have been
surrendered and canceled, it will maintain a system for recording the ownership of each Bond
that complies with the provisions of Section 149 of the Code.
(h) Place and Medium of Payment. Both principal of and interest on the
Bonds shall be payable in lawful money of the United States of America. For so long as all
Bonds are in fully immobilized form, payments of principal and interest shall be made as
provided in accordance with the operational arrangements of DTC referred to in the Letter of
Representations. In the event that the Bonds are no longer in fully immobilized form, interest on
the Bonds shall be paid by check or draft mailed to the Registered Owners at the addresses for
such Registered Owners appearing on the Bond Register on the 15th day of the month preceding
the interest payment date, and principal of the Bonds shall be payable upon presentation and
surrender of such Bonds by the Registered Owners at the principal office of the Bond Registrar.
SECTION 5. Redemption and Purchase.
(a) Optional Redemption. The City hereby reserves the right to redeem the
outstanding Bonds maturing on and after December 1, 2019, in whole or in part (maturities to be
selected by the City within a maturity in such manner as DTC or the Bond Registrar, as
appropriate, shall determine) on December 1, 2018, and on any date thereafter, at par, plus
accrued interest to the date of redemption.
•
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• (b) Mandatory Redemption of Term Bonds, if any. The Bonds may be called
for mandatory redemption at any time prior to scheduled maturity under terms approved by the
City Manager or Director of Finance and Budget in the Bond Purchase Contract pursuant to
Section 13 of this ordinance.
(c) Partial Redemption. If less than all of the principal amount of any Bond is
redeemed, upon surrender of such Bond at the principal office of the Bond Registrar, there shall
•
be issued to the Registered Owner, without charge, for the then unredeemed balance of the
principal amount, a new Bond or Bonds, at the option of the Registered Owner, of like series,
maturity and interest rate in any authorized denomination.
(d) Notice of Redemption. Written notice of any redemption of Bonds shall be
given by the Bond Registrar on behalf of the City by first class mail, postage prepaid, not less
4) than 30 days nor more than 60 days before the redemption date to the Registered Owners of
Bonds that are to be redeemed at their last addresses shown on the Bond Register. So long as the
Bonds are in book -entry form, notice of redemption shall be given as provided in the Letter of
Representations.
The requirements of this section shall be deemed complied with when notice is mailed,
whether or not it is actually received by the owner.
Each notice of redemption shall contain the following information: (1) the redemption
date, (2) the redemption price, (3) if less than all outstanding Bonds are to be redeemed, the
identification (and, in the case of partial redemption, the principal amounts) of the Bonds to be
redeemed, (4) that on the redemption date the redemption price will become due and payable
upon each Bond or portion called for redemption, and that interest shall cease to accrue from the
0 redemption date, (5) that the Bonds are to be surrendered for payment at the principal office of
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the Bond Registrar, (6) the CUSIP numbers of all Bonds being redeemed, (7) the dated date of
0
the Bonds, (8) the rate of interest for each Bond being redeemed, (9) the date of the notice, and
(10) any other information needed to identify the Bonds being redeemed.
Upon the payment of the redemption price of Bonds being redeemed, each check or other
transfer of funds issued for such purpose shall bear the CUSIP number identifying, by issue and
maturity, the Bonds being redeemed with the proceeds of such check or other transfer.
(e) Effect of Redemption. Unless the City has revoked a notice of redemption,
the City shall transfer to the Bond Registrar amounts that, in addition to other money, if any, held
by the Bond Registrar, will be sufficient to redeem, on the redemption date, all the Bonds to be
redeemed. From the redemption date interest on each Bond to be redeemed shall cease to accrue.
(f) Amendment of Notice Provisions. The foregoing notice provisions of this
40 section, including but not limited to the information to be included in redemption notices and the
persons designated to receive notices, may be amended by additions, deletions and changes in
order to maintain compliance with duly promulgated regulations and recommendations regarding
notices of redemption of municipal securities.
(g) Purchase on Open Market. The City reserves the right to purchase any of
the Bonds in the open market at any time and at any price.
SECTION 6. Creation of Debt Service Fund and Provision for Tax Levy Payments. A
special fund of the City known as the "LTGO Debt Service Fund, 2008" (the "Debt Service
Fund "), is hereby authorized to be created. The Debt Service Fund shall be drawn upon for the
sole purpose of paying the principal of and interest on the Bonds.
The City hereby irrevocably covenants and agrees for as long as any of the Bonds are
40 outstanding and unpaid that each year it will include in its budget and levy ad valorem taxes
-10- P120978 NMN120978 38E
al upon all the property within the City subject to taxation in an amount that will be sufficient,
together with all other revenues and money of the City legally available for such purposes, to pay
the principal of and interest on the Bonds as the same shall become due.
The City hereby irrevocably pledges that the annual tax provided for herein to be levied
for the payment of such principal and interest shall be within and as a part of the tax levy
permitted to cities without a vote of the people, and that a sufficient portion of each annual levy
to be levied and collected by the City prior to the full payment of the principal of and interest on
the Bonds will be and is hereby irrevocably set aside, pledged and appropriated for the payment
of the principal of and interest on the Bonds to the extent that other legally available funds are
not deposited into the Debt Service Fund. The full faith, credit and resources of the City are
hereby irrevocably pledged for the annual levy and collection of the taxes and for the prompt
• payment of the principal of and interest on the Bonds as the same shall become due.
SECTION 7. Bonds Deemed To Be No Longer Outstanding. In the event that the City,
in order to effect the payment, retirement or redemption of any Bond, sets aside in the Debt
Service Fund or in another special account, held in trust by a trustee, cash or noncallable
government obligations, as such obligations are now or hereafter defined in chapter 39.53 RCW,
or any combination of cash and /or noncallable government obligations, in amounts and
maturities which, together with the known earned income therefrom, are sufficient to redeem or
pay and retire such Bond in accordance with its terms and to pay when due the interest and
redemption premium, if any, thereon, and such cash and/or noncallable government obligations
are irrevocably set aside and pledged for such purpose, then no further payments need be made
into the Debt Service Fund for the payment of the principal of and interest on such Bond. The
owner of a Bond so provided for shall cease to be entitled to any lien, benefit or security of this
•
41- P:\20978 NMN\20978 38E
ordinance except the right to receive payment of principal, premium, if any, and interest from
•
such special fund, and such Bond shall be deemed to be not outstanding under this ordinance.
SECTION 8. Tax Covenant. The City covenants to undertake all actions required to
maintain the tax - exempt status of interest on the Bonds under Section 103 of the Code as set
forth in the Federal Tax Certificate that will be executed at the closing of the Bonds. The City
hereby designates the Bonds as "qualified tax- exempt obligations" under Section 265(b)(3) of
the Code for banks, thrift institutions and other financial institutions.
SECTION 9. Lost or Destroyed Bonds. If any Bonds are lost, stolen or destroyed, the
Bond Registrar may authenticate and deliver a new Bond or Bonds of like amount, maturity and
tenor to the Registered Owner upon the owner paying the expenses and charges of the Bond
Registrar and the City in connection with preparation and authentication of the replacement
Bond or Bonds and upon his or her filing with the Bond Registrar and the City evidence
•
satisfactory to both that such Bond or Bonds were actually lost, stolen or destroyed and of his or
her ownership, and upon furnishing the City and the Bond Registrar with indemnity satisfactory
to both.
SECTION 10. Form of the Bonds. The Bonds shall be in substantially the following
form:
[STATEMENT OF INSURANCE]
UNITED STATES OF AMERICA
NO. $
STATE OF WASHINGTON
CITY OF YAKIMA
LIMITED TAX GENERAL OBLIGATION BOND, 2008
INTEREST RATE: MATURITY DATE: CUSIP NO: 410
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411 REGISTERED OWNER:
PRINCIPAL AMOUNT: DOLLARS
The City of Yakima, Washington, a municipal corporation organized and existing under
the laws and Constitution of the State of Washington (the "City "), hereby acknowledges itself to
owe and for value received promises to pay to the Registered Owner identified above, or
registered assigns, on the Maturity Date identified above, the Principal Amount specified above,
unless redeemed prior thereto as provided herein, together with interest on such Principal
Amount from , 2008, or the most recent date to which interest has been paid or
duly provided for, at the Interest Rate set forth above payable December 1, 2008, and
semiannually thereafter on each June 1 and December 1 until payment of the principal sum has
been made or duly provided for. Both principal of and interest on this'bond are payable in lawful
money of the United States of America. For so long as the bonds of this issue are held in fully
immobilized form, payments of principal and interest thereon shall be made as provided in
accordance with the operational arrangements of The. Depository Trust Company ( "DTC ")
referred to in the Blanket Issuer Letter of Representations from the City to DTC. In the event
that the bonds of this issue are no longer held in fully immobilized form, interest on this bond
shall be paid by check or draft mailed to the Registered Owner at the address appearing on the
Bond Register on the 15th day of the month preceding the interest payment date, and principal of
this bond shall be payable upon presentation and surrender of this bond by the Registered Owner
at the principal office of the fiscal agency of the State of Washington in New York, New York
• (the "Bond Registrar "); provided, however, that if so requested in writing by the Registered
Owner of at least $1,000,000 principal amount of Bonds, interest will be paid by wire transfer on
the date due to an account with a bank located within the United States.
This bond is one of an issue of limited tax general obligation bonds of the City of like
date and tenor, except as to number, interest rate and date of maturity, in the aggregate principal
amount of $ , issued pursuant to Ordinance No. of the City, passed
, 2008 (the "Bond Ordinance "), to complete pedestrian crossing, street and other
infrastructure improvements within the City, to acquire a fire ladder truck and to make other
capital improvements deemed necessary by the City Council. '
The bonds of this issue are subject to redemption prior to their stated maturities as
provided in the Bond Ordinance.
The bonds of this issue have been designated by the City as "qualified tax - exempt
obligations" for investment by financial institutions under Section 265(b) of the Code.
The City has irrevocably covenanted with the owner of this bond that it will annually
include in its budget and levy taxes, within and as a. part of the tax levy permitted to cities
without a vote of the electorate, upon all the property subject to taxation in amounts sufficient,
together with other money legally available therefor, to pay the principal of and interest on this
bond as the same shall become due. The full faith, credit and resources of the City are hereby
irrevocably pledged for the annual levy and collection of such taxes and the prompt payment of
such principal and interest.
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The pledge of tax levies for payment of principal of and interest on the bonds may be
discharged prior to maturity of the bonds by making provision for the payment thereof on the
terms and conditions set forth in the Bond Ordinance.
The bonds of this issue are issued in fully registered form in the denomination of $5,000
each or any integral multiple thereof, provided that no bond shall represent more than one
maturity. Upon surrender to the Bond Registrar, bonds are interchangeable for bonds in any
authorized denomination of an equal aggregate principal amount and of the same interest rate
and maturity. This bond is transferable only on the records maintained by the Bond Registrar for
that purpose upon the surrender of this bond by. the Registered Owner hereof or his/her duly
authorized agent and only if endorsed in the manner provided hereon, and thereupon a new fully
registered bond of like principal amount, maturity and interest rate shall be issued to the
transferee in exchange therefor. Such exchange or transfer shall be without cost to the
Registered Owner or transferee. The City may deem the person in whose name this bond is
registered to be the absolute owner hereof for the purpose of receiving payment of the principal
of and interest on this bond and for any and all other purposes whatsoever.
Reference is made to the Bond Ordinance as more fully describing the covenants with
and the rights of Registered Owners of the bonds or registered assigns and the meanings of
capitalized terms appearing on this bond which are defined in such ordinance.
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 is issued pursuant to and in strict
compliance with the Constitution and laws of the State of Washington and ordinances of the
City, that all acts, conditions and things required to be done precedent to and in the issuance of
this bond and the bonds of this issue have happened, been done and . performed, and that this
bond and the bonds of this issue do not exceed any constitutional or statutory limitations.
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 the Mayor and to be
attested by . the manual or facsimile signature of the Clerk of the City, as of this day of
, 2008.
CITY OF YAKIMA, WASHINGTON
By /s/ manual or facsimile
David Edler, Mayor
ATTEST:
/s/ manual or facsimile
Deborah J. Moore, Clerk of the City
•
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• The Certificate of Authentication for the Bonds shall be in substantially the following
form and shall appear on each Bond:
CERTIFICATE OF AUTHENTICATION
Date of Authentication:
This bond is one of the City of Yakima, Washington, Limited Tax General Obligation
Bonds, 2008, dated , 2008.
WASHINGTON STATE FISCAL
AGENCY, as Bond Registrar
By
Authorized Signer
SECTION 11. Execution of the Bonds. The Bonds shall be executed on behalf of the
City with the manual or facsimile signature of the Mayor and attested by the manual or facsimile
signature of the City Clerk. In case either or both of the officers who have signed or attested any
6 of the Bonds cease to be such officer before such Bonds have been actually issued and delivered,
such Bonds shall be valid nevertheless and may be issued by the City with the same effect as
though the persons who had signed or attested such Bonds had not ceased to be such officers,
and any Bond may be signed or attested on behalf of the City by officers who at the, date of
actual execution of such Bond are the proper officers, although at the nominal date of execution
of such Bond such officer was not an officer of the City.
Only Bonds that bear a Certificate of Authentication in the form set forth in Section 10,
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 and are
entitled to the benefits of this ordinance.
In case either of the officers of the City who shall have executed the Bonds shall cease to
III be such officer or officers of the City before the Bonds so signed shall have been authentic ated
y gn
-15- P:\20978 NMN\20978 38E
or delivered by the Bond Registrar, or issued by the City, such Bonds may nevertheless be
0
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.
SECTION 12. Application of Proceeds. The City shall utilize funds designated the Fire
Capital Fund #332 and The Arterial Street Fund #142 (the "Project Funds ") into which the
proceeds of the Bonds shall be deposited. Money on hand in the Project Funds shall be used to
pay the costs of or reimbursement for the costs of the Projects and costs of issuance of the
Bonds. The Director of Finance and Budget or her designee may invest money in the Project
e l Fund in legal investments for City funds. Earnings on such investments shall accrue to the
benefit of the fund earning such interest. Any part of the proceeds of the Bonds remaining in the
Project Fund after all costs of the Projects have been paid (including costs of issuance) may be
used for any capital purpose of the City or may be transferred to the Debt Service Fund.
SECTION 13. Sale of the Bonds; Bond Insurance. The Bonds shall be sold at negotiated
sale to the Underwriter pursuant to the terms of the Bond Purchase Contract. The City Manager
and the Director of Finance and Budget are hereby authorized to negotiate terms for the purchase
of the Bonds and execute the Bond Purchase Contract, with such terms as are approved by him
or her pursuant to this section and consistent with this ordinance.. The Underwriter is advising
the Council that market conditions are fluctuating and, as a result, the most favorable market
conditions may occur on a day other than a regular meeting date of the City Council. The City
Council has determined that it would be in the best interest of the City to delegate to the City
-16- P:\20978 NMN\20978 38E
Manager and the Director of Finance and Budget fora limited time the authority to approve the
final interest rates, aggregate principal amount, and principal amounts of each maturity of the •
Bonds. The City Manager and the Director of Finance and Budget are hereby authorized to
approve the final interest rates, aggregate principal amount, and principal maturities for the
Bonds in the manner provided hereafter so long as (a) the aggregate principal amount of the
Bonds does not exceed $3,500,000; and (b) the true interest cost for the Bonds (in the aggregate)
does not exceed 5.00 %.
In determining whether or not to proceed with bond insurance and determining the final
interest rates, aggregate principal amounts, and principal maturities, the City Manager and the
Director of Finance and Budget, in consultation with City staff, shall take into account those
factors that, in his and her judgment, will result in the lowest true interest cost on the Bonds to
their maturity, including, but not limited to current financial market conditions and current
interest rates for obligations comparable in tenor and quality to the Bonds. Subject to the terms
and conditions set forth in this .Section 13, the City Manager and the Director of Finance and
Budget are hereby authorized to execute the final form of the Bond Purchase Contract, upon the
City Manager and the Director of Finance and Budget's approval of the final interest rates,
aggregate principal amount, and principal maturities set forth therein. Following the execution
of the Bond Purchase Contract, the Director of Finance and Budget shall provide a report to the
City Council, at the next regular meeting of the City Council after sale of the Bonds, describing
the final terms of the Bonds approved pursuant to the authority delegated in this section. The
authority granted to the City Manager and the Director of Finance and Budget by this Section 13
shall expire 60 days after the date of approval of this ordinance. If a Bond Purchase Contract for
the Bonds has not been executed within 60 days after the date of final approval of this ordinance,
-17- - P:\20978 NMN120978_38E
the authorization for the issuance of the Bonds shall be rescinded, and the Bonds shall not be
•
issued nor their sale approved unless such Bonds shall have been re- authorized by ordinance of
the City Council. The ordinance re- authorizing the issuance and sale of such Bonds may be in
the form of a new ordinance repealing this ordinance in whole or in part or may be in the form of
an amendatory ordinance approving a bond purchase contract or establishing terms and
conditions for the authority delegated under this Section 13.
Upon the passage and approval of this ordinance, the proper officials of the City,
including the City Manager and the Director of Finance and Budget, are authorized and directed
to undertake all action necessary for the prompt execution and delivery of the Bonds to the
Underwriter thereof and further to execute all closing certificates and documents required to
effect the closing and delivery of the Bonds in accordance with the terms of the Bond Purchase
Contract.
0
The Director of Finance and Budget is hereby further authorized and directed to solicit
proposals from municipal bond insurance companies for the issuance of a bond insurance policy.
In the event that the Director of Finance and Budget receives multiple proposals, the Director of
Finance and Budget may select the proposal having the lowest cost and resulting in an overall
lower interest cost with respect to the Bonds. The Director of Finance and Budget may execute a
commitment received from the insurer selected by the Director of Finance and Budget. The City
Council further authorizes and directs all proper officers, agents, attorneys and employees of the
City to cooperate with the insurer in preparing such additional agreements, certificates, and other
documentation on behalf of the City as shall be necessary or advisable in providing for the bond
insurance policy.
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2
410 SECTION 14. Approval of Preliminary Official Statement. The City hereby authorizes
the preparation of a Preliminary Official Statement and authorizes the distribution of such
Preliminary Official Statement by the Underwriter in connection with the of the Bonds.
Pursuant to the Rule, the City hereby authorizes the City Manager or the Director of Finance and
Budget to deem the Preliminary Official Statement final as of its date except for the omission of
information dependent upon the pricing of the issue and the completion of the underwriting
agreement, such as offering prices, interest rates, selling compensation, aggregate principal
amount, principal amount per maturity, delivery dates and other terms of the Bonds dependent on
the foregoing matters. The City agrees to cooperate with the Underwriter to deliver or cause to
be delivered, within seven business days from the date of the Bond Purchase Contract and in
sufficient time to accompany any confirmation that requests payment from any customer of the
• Underwriter, copies of a final official statement in sufficient quantity to comply with
paragraph (b)(4) of the Rule and the rules of the MSRB.
SECTION 15. Ongoing Disclosure.
(a) Contract /Undertaking. This section constitutes the City's written
undertaking for the benefit of the owners of the Bonds as required by Section (b)(5) of the Rule.
(b) Financial Statements /Operating Data. The City agrees to provide or
cause to be provided to each NRMSIR and to the SID, if any, in each case as designated by the
SEC in accordance with the Rule, the following annual financial information and operating data
for the prior fiscal year (commencing in 2009 for the fiscal year ended December 31, 2008):
1.. Annual financial statements, which statements may or may not be
audited, showing ending fund balances for the City's general fund prepared in accordance with
• 1
-19- P:120978 NMN\20978 38E
the Budgeting Accounting and Reporting System prescribed by the Washington State Auditor
0
pursuant to RCW 43.09.200 (or any successor statute);
2. The assessed valuation of taxable property in the City;
3. Ad valorem taxes due and percentage of taxes collected;
4. Property tax levy rate per $1,000 of assessed valuation; and
5. Outstanding general obligation debt of the City.
Items 2 -5 shall be required only to the extent that such information is not included in the annual
financial statements.
The information and data described above shall be provided on or before nine months
after the end of the City's fiscal year. The City's current fiscal year ends December 31. The
City may adjust such fiscal year by providing written notice of the change of fiscal year to each
e l then existing NRMSIR and the SID, if any. In lieu of providing such annual financial
information and operating data, the City may cross - reference to other documents provided to the
NRMSIR, the SID or to the SEC and, if such document is a final official statement within the
meaning of the Rule, available from the MSRB.
If not provided as part of the annual financial information discussed above, the City shall
provide the City's audited annual financial statement prepared in accordance with the Budgeting
Accounting and Reporting System prescribed by the Washington State Auditor pursuant to
RCW 43.09.200 (or any successor statute) when and if available to each then existing NRMSIR
and the SID, if any.
(c) Material Events. The City agrees to provide or cause to be provided, in a
timely manner, to the SID, if any, and to each NRMSIR or to the MSRB notice of the occurrence
of any of the following events with respect to the Bonds, if material:
ill
-20- P:\20978 NMN\20978 38E
• Principal and interest payment delinquencies;
• Non - payment related defaults;
• Unscheduled draws on debt service reserves reflecting financial difficulties;
• Unscheduled draws on credit enhancements reflecting financial difficulties;
• Substitution of credit or liquidity providers, or their failure to perform;
• Adverse tax opinions or events affecting the tax- exempt status of the Bonds;
• Modifications to the rights of Bond owners;
• Bond calls (optional, contingent or unscheduled Bond calls other than scheduled
sinking fund redemptions for which notice is given pursuant to Exchange Act
Release 34- 23856);
• Defeasances;
• • Release, substitution or sale of property securing repayment of the Bonds; and
• Rating, changes.
Solely for purposes of disclosure, and not intending to modify this undertaking, the City
advises that no debt service reserves or property secures payment of the Bonds.
(d) Notification Upon Failure to Provide Financial Data. The City agrees to
provide or cause to be provided, in a timely manner, to each NRMSIR or to the MSRB and to the
SID, if any, notice of its failure to provide the annual financial information described in
Subsection (b) above on or prior to the date set forth in Subsection (b) above.
(e) Termination /Modification. The City's obligations to provide annual
financial information and notices of material events shall terminate upon the legal defeasance,
prior redemption or payment in full of all of the Bonds. Any provision of this section shall be
40 null and void if the City (1) obtains an opinion of nationally recognized bond counsel to the
-21- P:\20978 NMN\20978 38E
effect that the portion of the Rule that requires that provision is invalid, has been repealed
ii
retroactively or otherwise does not apply to the Bonds and (2) notifies each NRMSIR and the
SID, if any, of such opinion and the cancellation of this section.
The City may amend this section with an opinion of nationally recognized bond counsel
in accordance with the Rule. In the event of any amendment of this section, the City shall
describe such amendment in the next annual report, and shall include a narrative explanation of
the reason for the amendment and its impact on the type (or in the case of a change of accounting
principles, on the presentation) of financial information or operating data being presented by the
City. In addition, if the amendment relates to the accounting principles to be followed in
preparing financial statements, (i) notice of such change shall be given in the same manner as for
a material event under Subsection (c) and (ii) the annual report for the year in which the change
is made shall present a comparison (in narrative form and also, if feasible, in quantitative form) •
between the financial statements as prepared on the basis of the new accounting principles and
those prepared on the basis of the former accounting principles.
(f) Bond Owner's Remedies Under This Section. The right of any bondowner
or beneficial owner of Bonds to enforce the provisions of this section shall be limited to a right to
obtain specific enforcement of the City's obligations under this section, and any failure by the
City to comply with the provisions of this undertaking shall not be an event of default with
respect to the Bonds. For purposes of this section, "beneficial owner" means any person who has
the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of,
any Bonds, including persons holding Bonds through nominees or depositories.
SECTION 16. General Authorization; Ratification of Prior Acts. The Director of
40 Finance and Budget and City Manager and other appropriate officers of the City are authorized
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to take any actions and to execute documents as in their judgment may be necessary or desirable
in order to carry out the terms of, and complete the transactions contemplated by, this ordinance.
All acts taken pursuant to the authority of this ordinance but prior to its effective date are hereby
ratified.
SECTION 17. Severability. If any provision in this ordinance is declared by any court of
competent jurisdiction to be contrary to law, then such provision shall be null and void and shall
be deemed separable from the remaining provisions of this ordinance and shall in no way affect
the validity of the other provisions of this ordinance or of the Bonds.
SECTION 18. Effective Date. This ordinance shall be effective 30 days after its
passage, approval and publication as provided by law.
•
r
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PASSED by the City Council of the City of Yakima at a regular meeting thereof, held •
this 15th day of July, 2008.
CITY OF YAKIMA, WASHINGTON
David Edler, Mayor
ATTEST
Deborah J. Moore, City Clerk
APPROVED AS TO FORM:
City Attorney
First Reading:
Publication Date:
Effective Date:
•
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• CERTIFICATE
I, the undersigned, Clerk of the City of Yakima, Washington (herein called the "City ")
and keeper of the records of the City Council of the City (the "City Council "), DO HEREBY
CERTIFY:
1. That the attached ordinance is a true and correct copy of Ordinance No. 2008 -
of the City (the "Ordinance "), as finally passed at a regular meeting of the City Council
held on July 15, 2008, 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
quorum of the City Council was present throughout' the meeting and a legally sufficient number
of members of the City Council voted in the proper manner for the passage of said Ordinance;
0 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.
DATED this 15 day of July, 2008.
City Clerk
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P:\20978_NMN\20978_38E
•
•
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