HomeMy WebLinkAboutR-1991-D6018 Bond Ordinance No. 3402•
RESOLUTION NO. +" `r 0 1 8
A RESOLUTION of the Council of the City of Yakima,
Washington authorizing the Clerk of the City to
correct a clerical mistake occurring on pages 3, 4
and 5 of Ordinance No. 3402 of the City.
WHEREAS, by Ordinance No. 3402 of the City of. Yakima,
Washington, (the "City") adopted September 24, 1991, the
City authorized the issuance and sale of its Limited Tax
General Obligation Bond, 1991, (the "Bond") in the aggregate
principal amount of $400,000 for the purpose of financing
the City's Home Preservation Program; and
WHEREAS, by Ordinance No. 3402, the City adopted the
offer of Pioneer National Bank to purchase the Bond; and
WHEREAS, the offer of Pioneer National Bank specified
that interest on the Bond be payable semiannually on March 1
and September 1 of each year commencing March 1, 1992 until
the principal of the Bond was paid and that the Bond matures
on September 1, 2001; and
WHEREAS, in the preparation of Ordinance 3402 Bond
Counsel for the City incorrectly provided that an interest
payment date would be October 1 rather than September 1 and
that the maturity date would be October 1, 2001, rather than
September 1, 2001; and
WHEREAS, Ordinance 3402 should be corrected nunc pro
tunc to reflect the City's intent to pay interest on the
Bond and for the Bond to mature on the dates specified by
the Purchaser in its offer as accepted by the City; and
WHEREAS, the error which was made was in the nature of
a clerical mistake and can be corrected as set forth herein;
NOW, THEREFORE, BE IT RESOLVED by the City of Yakima,
Washington as follows:
Section i The Clerk of the City is hereby authorized
to correct Ordinance No. 3402 of the City nunc pro tunc
either by interlineation in the existing Ordinance, or by
the substitution of corrected pages containing the following
corrections only, in the following particulars:
On page 3, in the first paragraph of Section 2,
substitute the word "September" for the word
"October" where it now appears.
On page 4, in Section 5, substitute the word
"September" for the word "October" where it now
appears.
On page 5 in the first two paragraphs of the Bond
Form, substitute the word "September" for the word
"October" where it now appears.
ADOPTED by the Council of the City of Yakima,
Washington, at a regular meeting thereof, this 2,21 day
of October, 1991.
ATTEST:
CITY OF YAKIMA, WASHINGTON
By Cat.
Mayor
By .X7
City Clerk
C: W102S739'OO.00404RESCCUAle
RESOLUTION NO. - PAGE 2
•
•
(n) "Rebate Computation Certificate" means the certificate
executed by the Finance Director setting forth the methodology
for computation of Rebatable Arbitrage.
SECTION 2. Issuance of Bonds. The City shall, for the
purpose of funding the Program, issue its Bonds in the aggregate
principal amount of $400,000. The Bonds shall be designated the
'City of Yakima, Washington, Limited Tax General Obligation
Bonds, 1991," shall be dated the date of their delivery to the
Purchaser, shall be in fully registered form, in denominations of
$5,000 or any integral multiple thereof, shall mature on
September 1, 2001, and shall bear interest payable semiannually
on the first day of each September and March commencing March 1,
1992, at a rate if 8.625 percent per annum calculated on a basis
of 365/366 days as the case may be.
The City hereby appoints the Finance Director as the Bond
registrar. The City shall cause a Bond register to be maintained
by the Bond registrar. So long as any Bonds remain outstanding,
the Bond registrar shall make all necessary provisions to permit
the exchange or registration or transfer of the Bonds at its
office. The Bonds shall be transferable only upon the Bond
register by the registered owner thereof in person or by his
attorney duly authorized in writing, upon surrender thereof,
together with a written instrument of transfer satisfactory to
the Bond registrar duly executed by the registered owner or his
duly authorized attorney. Upon the transfer of a Bond, the Bond
registrar shall issue in the name of the transferee, a new Bond
in the same denomination.
Both principal of and interest on the Bonds shall be payable
in lawful money of the United States of America. Interest on the
Bonds shall be paid by check or draft mailed on the day interest
is due to the registered owners or assigns at the address
appearing on the Bond register on the 15th day of the month
preceding the principal and interest payment date. The final
payment of principal of and interest on the Bonds shall be
payable upon presentation and surrender thereof by the registered
owners at the office of the Finance Director.
SECTION 3. Tax Covenants. The City shall comply with the
provisions of this section unless, in the written opinion of
nationally -recognized bond counsel to the City, such compliance
is not required in order to maintain the exemption of the
interest on the Bonds from federal income taxation.
The City covenants that it will not take or permit to be
taken on its behalf any action which would adversely affect the
exemption from federal income taxation of the interest or
discount, if any, on the Bonds and will take or require to be
taken such acts as may reasonably be within its ability and as
may from time to time be required under applicable law to
continue the exemption from federal income taxation of the
interest and discount, if any, on the Bonds provided, however,
that the City does not represent, warrant, covenant or agree that
interest on the Bonds will not be taken into account for purposes
of computing the corporate or individual alternative minimum tax
under Section 55 of the Code, or for purposes of computing the
environmental tax on corporations under Section 59A of the Code
or under any other similar treatment of interest on the Bonds.
Without limiting the generality of the foregoing, the City
covenants that it will not take any action or fail to take any
action with respect to the investment of the proceeds of any line
of credit secured by any Bond, or other funds, which would result
in constituting a Bond to be an 'arbitrage bond' within the
meaning of such term as used in Sections 103 and 148 of the Code
or which would violate Treasury Regulations under Sections 103,
-3- U1C476 91/10/16
143 and 148 of the Code applicable to the Bonds. The City will
comply with the requirements of Sections 103, 143 and 148 of the
Code (or any successor provision thereof applicable to the Bonds)
and the applicable Regulations thereunder throughout the term of
the Bonds.
The Council hereby finds and declares, with respect to
Section 148(f)(4)(C) of the Code, that ninety-five percent or
more of the net proceeds of the Bonds will be used for local
governmental activities of the City.
SECTION 4. pond Redemption Fund. A special fundi of the
City to be known as the 'City of Yakima Low Income Sousing Bond
Redemption Fund,' (the 'Bond Fund') is hereby authorized to be
created by the Finance Director. The Bond Fund shall be drawn
upon for the sole purpose of paying the principal of and interest
on the Bonds. Honeys on deposit in the Bond Fund not immediately
needed to pay such interest or principal may temporarily be
deposited in such institutions or invested in such obligations as
are legal investments for City funds. Any interest or profit
from the investment of such coneys shall be deposited in the Bond
Fund. Any moneys remaining in the Bond Fund after payment in
full of the principal of and interest on the Bonds shall be
transferred to the Community Development Block Grant Fund of the
City, and the Bond Fund shall be closed.
The City covenants and agrees that for as long as the Bonds
are outstanding and unpaid it will include in its budget and make
annual levies of ad valorem taxes, within and as a part of the
tax levy permitted to cities without a vote of the people, upon
all taxable property within the City subject to taxation in
amounts that, with other monies legally available therefor, will
be sufficient to pay the principal of and interest on the Bond as
the same shall become due and payable. Such taxes and other
monies so pledged shall be paid directly into the Bond Fund in
amounts sufficient to pay the principal of and interest on the
Bonds, and none of the money in such Fund shall be used for any
other purpose than the payment of the principal of and interest
on the Bonds. The full faith, credit and resources of the City
are hereby pledged for the prompt payment of the principal of and
interest on the Bonds as the same shall become due.
SECTION 5. Payment Prior to Maturity. The Bonds may be
redeemed in whole or in part in advance of their scheduled
maturity at any time on or after September 1, 1994, without
premium or penalty upon thirty days' written notice (which may be
by first class mail sent to the address on the Bond Register to
the registered owner(s)) at par plus accrued interest to the date
of redemption.
SECTION 6. Analication of the Proceeds of Salm of the
Bonds. Proceeds of the Bonds shall be deposited in the City of
Yakima Community Development Block Grant Fund held by the Finance
Director and used by the City to pay the cost and expenses of the
Program and costs incidental to the issuance of the Bonds.
SECTION 7. payment of Laans. Proceeds received from the
repayment of loans made to carry out the Program shall be
deposited in the Community Development Block Grant Fund of the
City and used for any lawful purposes of the City, including the
payment of principal and interest on the Bonds.
SECTION 8. Foxe of ,the Bonds. The Bonds shall be in
substantially the following form:
-.4-
L11C476 91/10/16
UNITED STATES OF AMERICA
N0. S
STATE OF WASHINGTON
YAKIMA COUNTY
CITY OF YARIMA
LIMITED TAX GENERAL OBLIGATION BOND
Principal Interest Maturity Date: CUSIP No.:
,Amount: Rate:
Registered Owner:
City of Yakima, Washington (the 'City'), a municipal
corporation organized and existing under and by virtue of the
laws and Constitution of the State of Washington, hereby
acknowledges itself to owe and for value received promises to pay
to the Registered Owner identified above or registered assigns on
September 1, 2001, solely from the sources hereinafter mentioned,
the Principal Amount identified above with interest thereon until
such principal sum is paid.
This Bond bears interest at the Interest Rate identified
above on the Principal Amount identified above payable semi-
annually commencing on the first day of March 1992 and on the
first day of each March and September thereafter until the Bonds
are paid.
This Bond is issued pursuant to duly adopted ordinances and
resolutions of the City, including Ordinance No. adopted on
(the 'Bond Ordinance"), for tE purpose of
financing a City of Yakima home preservation program, all in
conformity with the Constitution and laws of the State of
Washington and the ordinances of the City.
The City hereby covenants and agrees with the registered
owner of this Bond that it will keep and perform all of the
covenants of this Bond and the Bond Ordinance.
Interest on this Bond is payable in lawful coney of the
United States of America by check or draft mailed on the day
Interest is due to the registered owner or assigns at the address
appearing on the Bond register on the 15th day of the month
preceding the interest payment date. The final payment of
principal of and interest on the Bond shall be payable upon
presentation and surrender hereof by the registered owner at the
office of the Director of Finance and Budget.
The City has reserved the right to redeem the Bonds of this
issue in whole or in part at any time on or after October 1, 1994
without premium or penalty on thirty days' written notice to the
registered owner hereof at par plus accrued interest to the date
of redemption.
The City hereby irrevocably covenants that it will include
in its budget and levy ad valorem taxes within and as a part of
the tax levy permitted to cities without a vote of the people,
upon all the taxable property with the City subject to taxation,
in amounts sufficient, with other conies legally available
therefor, to pay the principal of and interest due on this Bond
as the same shall become due and shall deposit such funds into
the City of Yakima Low Income Housing Bond Redemption Fund
authorized to be maintained by the Bond Ordinance.
-S-
NIC4741 111/10/16
PRESTON
THORGRI MSON
SH I DLER
GATES & ELLIS
ATTORNEYS AT LAW
October 16, 1991
VIA FAX
VIA OVERNIGHT DELIVERY
5400 Columbia Center
701 Fifth Avenue
Seattle, WA 98104-7078
Telephone: (206) 623-7580
Facsimile: (206) 623-7022
LARRY M. CARTER
John Vanek, Esq.
City Attorney
City of Yakima
129 North 2nd St.
Yakima, Wa 98901
Re: Correction of Clerical Error in Ordinance 3402
Authorizing LTGO Bonds for Home Preservation Program
Dear John:
As we advised you today, we have discovered that we made an
error in preparation of Ordinance 3402 concerning the City's
$400,000 aggregate principal amount of LTGO Bonds. The offer of
Pioneer National Bank as accepted by the City by Ordinance 3402
specified that interest be payable March 1 and September 1 of each
year and that the Bond mature on September 1, 2001. We
inadvertently typed October 1 rather than September 1 when we
prepared the Ordinance.
We believe the Ordinance can be corrected (rather than
amended) by means of a Resolution of the City Council authorizing
the interlineation of the word "September" in place of "October"
on pages 3, 4 and 5 of the Ordinance. Another alternative is to
substitute corrected pages 3, 4 and 5 with such changes made.
We enclose copies of pages in which changes are made
substituting the word "September" for the word "October" on page
3 in the first paragraph of Section 2; on page 4 in Section 5 and
in the first two paragraphs of the Bond Form on page 5.
We also enclose a form of a proposed Resolution which
authorizes the Clerk to either interlineate "September" for
"October" in the existing Ordinance or to substitute pages
containing the corrections on a nunc pro tunc basis.
We apologize again for the error and appreciate your
assistance in helping us to rectify it.
Anchorage • Bellevue • Portland • Spokane • Tacoma • Washington, D.C.
A Partnership Including A Professional Corporation
John Vanek, Esq.
October 16, 1991
Page 2
Best regards.
Very truly yours,
PRESTON THORGRIMSON
SHIDLER GATES & ELLIS
By
LMC:bg
Enclosures
cc: John Hansen
K:\LMC\25739-00.004\04VANEK.1UQ
Larry M. Carter