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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