HomeMy WebLinkAbout3524ORDINANCE NO. 3524
AN ORDINANCE of the City of Kent, Washington, relating to
contracting indebtedness; providing for the issuance of $20,145,000 par
value of Limited Tax General Obligation Various Purpose and
Refunding Bonds, 2000, of the City for (a) general City purposes to
provide funds with which to finance a variety of capital projects, (b) to
provide part of the funds with which to pay the cost of advance refunding
a portion of the City's outstanding Limited Tax General Obligation and
Refunding Bonds, 1995, and Limited Tax General Obligation Bonds,
1999, and (c) paying the administrative costs of such refimding and the
costs of issuance and sale of such bonds; fixing the date, form,
maturities, interest rates, terms and covenants of the bonds; providing for
and authorizing the purchase of certain obligations out of the proceeds
of the sale of the bonds herein authorized and for the use and application
of the money derived from those investments; authorizing the execution
of an agreement with U.S. Bank Trust National Association of Seattle,
Washington, as refunding trustee; providing for the call, payment and
redemption of the outstanding bonds to be refunded; providing for bond
insurance; establishing a bond redemption fund and a project fund; and
approving the sale and providing for the delivery of the bonds to Lehman
Brothers Inc. of Seattle, Washington.
PASSED SEPTEMBER 19, 2000
This document prepared by:
Foster Pepper & Shefelman PLLC
1111 Third Avenue, Suite 3400
Seattle, Washington 98101
(206) 447-4400
50193413.05
TABLE OF CONTENTS
Page
SECTION].
Definitions................................................................................................ 4
SECTION2.
Debt Capacity...........................................................................................
6
SECTION 3.
Authorization and Purposes of Bonds ......................................................
6
SECTION 4.
Description of Bonds................................................................................
7
SECTION 5.
Registration and Transfer of Bonds.........................................................
8
SECTION 6.
Payment of Bonds...................................................................................
10
SECTION 7.
Redemption Provisions and Open Market Purchase of Bonds ...............
10
SECTION 8.
Notice of Redemption..............................................................................
12
SECTION 9.
Failure To Redeem Bonds......................................................................
13
SECTION 10.
Pledge of Taxes.....................................................................................
13
SECTION 11.
Refunding of the Refunded Bonds.........................................................
13
SECTION 12.
Call for Redemption of the 1995 Refunded Bonds ...............................
16
SECTION 13.
City Findings with Respect to Refunding .............................................
17
SECTION 14.
Bond Fund and Deposit of Bond Proceeds ..........................................
17
SECTION 15.
Form and Execution of Bonds..............................................................
18
SECTION 16.
Bond Registrar......................................................................................
19
SECTION 17.
Preservation of Tax Exemption for Interest on Bonds .........................
19
SECTION 18.
Refunding or Defeasance of the Bonds .................................................
20
SECTION 19.
Approval of Bond Purchase Contract ..................................................
21
SECTION 20.
Preliminary Official Statement Deemed Final .....................................
22
SECTION21.
Undertaking to Provide Continuing Disclosure ...................................
22
SECTION22.
Bond Insurance.....................................................................................
25
SECTION 23.
Severability...........................................................................................28
SECTION 24.
Effective Date......................................................................................
29
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1 LTGO Various Purpose and
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ORDINANCE NO. 3524
AN ORDINANCE of the City of Kent,
Washington, relating to contracting indebtedness; providing
for the issuance of $20,145,000 par value of Limited Tax
General Obligation Various Purpose and Refunding Bonds,
2000, of the City for (a) general City purposes to provide
funds with which to finance a variety of capital projects, (b)
to provide part of the funds with which to pay the cost of
advance refunding a portion of the City's outstanding
Limited Tax General Obligation and Refunding Bonds,
1995, and Limited Tax General Obligation Bonds, 1999,
and (c) paying the administrative costs of such refunding
and the costs of issuance and sale of such bonds; fixing the
date, form, maturities, interest rates, terms and covenants of
the bonds; providing for and authorizing the purchase of
certain obligations out of the proceeds of the sale of the
bonds herein authorized and for the use and application of
the money derived from those investments; authorizing the
execution of an agreement with U.S. Bank Trust National
Association of Seattle, Washington, as refunding trustee;
providing for the call, payment and redemption of the
outstanding bonds to be refunded; providing for bond
insurance; establishing a bond redemption fund and a
project fund; and approving the sale and providing for the
delivery of the bonds to Lehman Brothers Inc. of Seattle,
Washington.
WHEREAS, the City of Kent, Washington (the "City"), is in need of
financing a variety of capital projects which are more particularly described in Exhibit
A to this ordinance, the estimated cost of which is $11,705,000, and the City does not
have available sufficient funds to pay the cost; and
WHEREAS, pursuant to Ordinance No. 3209, the City heretofore issued
its $5,420,000 par value Limited Tax General Obligation and Refunding Bonds, 1995
(the "1995 Bonds"), for the purpose of providing part of the funds with which to pay the
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cost of advance refunding the City's outstanding Golf Complex Revenue Bonds, 1988,
acquiring, constructing and installing certain improvements to the City's Golf Complex
and paying the administrative costs of such refunding and costs of issuance, and by that
ordinance reserved the right to redeem the 1995 Bonds prior to their maturity at any time
on or after December 1, 2004, at 101% of par, plus accrued interest to the date fixed for
redemption; and
WHEREAS, there are presently outstanding $1,035,000 par value of
1995 Bonds maturing on December 1 in the years 2009 and 2010, and bearing interest
at the rates of 6.20% and 6.25%, respectively (the "1995 Refunded Bonds"); and
WHEREAS, pursuant to Ordinance No. 3444, the City heretofore issued
its $21,205,000 par value Limited Tax General Obligation Bonds, 1999 (the "1999
Bonds"), for the purpose of financing a variety of capital projects, including technology
and communication upgrades, acquiring land and buildings for municipal purposes and
providing major municipal facility upgrades and street improvements; and
WHEREAS, there are presently outstanding $7,965,000 par value of
1999 Bonds maturing on December 1 of each of the years 2004 through 2009, inclusive,
and bearing various interest rates from 4.00% to 4.40% (the "1999 Refunded Bonds");
and
WHEREAS, after due consideration, it appears to the City Council that
the 1995 Refunded Bonds and 1999 Refunded Bonds (collectively, the "Refunded
Bonds") may be refunded by the issuance and sale of the limited tax general obligation
refunding bonds authorized herein (the "Bonds") so that a substantial savings will be
effected by the difference between the principal and interest cost over the life of the
Bonds allocated to such refunding and the principal and interest cost over the life of the
Refunded Bonds but for such refunding, which refunding will be effected by:
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(a) The issuance of the Bonds and the payment of the administrative
costs of the refunding;
(b) The payment of the interest on the 1995 Refunded Bonds when due
up to and including December 1, 2004, and the call, payment and
redemption on December 1, 2004, of all of the then -outstanding
1995 Refunded Bonds at a price of 101% of par; and
(c) The payment of the principal of and interest on the 1999 Refunded
Bonds when due;
(the "Refunding Plan") and
WHEREAS, to effect that refunding in the manner that will be most
advantageous to the City it is found necessary and advisable that certain Acquired
Obligations (hereinafter defined) bearing interest and maturing at such time or times as
necessary to accomplish the refunding as aforesaid be purchased out of a portion of the
proceeds of the Bonds; and
WHEREAS, the City Council deems it to be in the best interests of the
City to issue and sell the Bonds to pay costs of advance refunding the Refunded Bonds
and to pay the administrative costs of such refunding and the costs of issuance and sale
of the Bonds; and
WHEREAS, the MBIA Insurance Corporation of Armonk, New York
(`Bond Insurer"), has made a commitment to issue an insurance policy (the "Municipal
Bond Insurance Policy") insuring the payment when due of the principal of and interest
on the Bonds as provided therein, and the City Council of the City deems that the purchase
of the Municipal Bond Insurance Policy is in the best interest of the City; and
WHEREAS, Lehman Brothers Inc. of Seattle, Washington, has offered
to purchase the bonds authorized herein under the terms and conditions hereinafter set
forth in the form of a bond purchase contract; NOW, THEREFORE,
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THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON,
DOES HEREBY ORDAIN AS FOLLOWS:
SECTION L Definitions. As used in this ordinance, the following
words shall have the following meanings:
"Acquired Obligations" means those United States Treasury Certificates of
Indebtedness and/or Notes --State and Local Government Series and other direct,
noncallable obligations of the United States of America purchased to accomplish the
Refunding Plan as authorized by this ordinance.
"Bond Fund" means the Limited Tax General Obligation Various Purpose and
Refunding Bond Fund, 2000, created by this ordinance for the payment of the Bonds.
"Bond Insurer" means MBIA Insurance Corporation, of Armonk, New York.
"Bond Register" means the books or records maintained by the Bond Registrar
containing the name and mailing address of the owner of each Bond and the principal
amount and number of Bonds held by each owner.
"Bond Registrar" means collectively, the fiscal agent and co -fiscal agent of the
State of Washington, as the same may be designated from time to time.
"Bonds" means the $20,145,000 par value Limited Tax General Obligation
Various Purpose and Refunding Bonds, 2000, of the City issued pursuant to and for the
purposes provided in this ordinance.
"1995 Bonds" means the outstanding Limited Tax General Obligation and
Refunding Bonds, 1995, of the City issued pursuant to Ordinance No. 3209, the refunding
of a portion of which has been provided for by this ordinance.
1995 Refunded Bonds" means the presently outstanding $1,035,000 par value
of 1995 Bonds maturing on December 1 in the years 2009 and 2010, and bearing interest
at the rates of 6.20% and 6.25%, respectively.
"1999 Bonds" means the outstanding Limited Tax General Obligation Bonds,
1999, of the City issued pursuant to Ordinance No. 3444, the refunding of a portion of
which has been provided for by this ordinance.
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"1999 Refunded Bonds" means the presently outstanding $7,965,000 par value
of 1999 Bonds maturing on December 1 of each of the years 2004 through 2009, inclusive,
and bearing various interest rates from 4.00% to 4.40%.
"City" means the City of Kent, Washington, a municipal corporation duly
organized and existing under and by virtue of the laws of the State of Washington.
"Code" means the United States Internal Revenue Code of 1986, as amended, and
applicable rules and regulations promulgated thereunder.
"DTC" means The Depository Trust Company, New York, New York.
"Finance Director" means the Finance Director of the City.
"Government Obligations" means direct, noncallable obligations of the United
States of America.
"Letter of Representations" means the Blanket Issuer Letter of Representations
dated March 16, 1999, between the City and DTC, as it may be amended from time to
time.
"Municipal Bond Insurance Policy" means the policy issued by the Bond Insurer
insuring the payment of the principal of and interest on the Bonds.
"Projects" means a variety of capital projects as identified in Exhibit A, attached
hereto and by this reference made a part hereof.
"Refunded Bonds" means, collectively, the 1995 Refunded Bonds and 1999
Refunded Bonds.
"Refunding Plan" means:
(a) the placement of sufficient proceeds of the Bonds which,
with other money of the City, if necessary, will acquire the Acquired
Obligations to be deposited, with cash, if necessary, with the Refunding
Trustee;
(b) the payment of the interest on the 1995 Refunded Bonds
when due up to and including December 1, 2004, and the call, payment
and redemption on December 1, 2004, of all of the then -outstanding 1995
Refunded Bonds at a price of 101 % of par;
(c) the payment of the principal of and interest on the 1999
Refunded Bonds when due; and
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(d) the costs of payment of the administrative costs of the
Refunding Plan.
"Refunding Trust Agreement" means a Refunding Trust Agreement between the
City and the Refunding Trustee substantially in the form of that which is on file with the
City Clerk and by this reference incorporated herein.
"Refunding Trustee" means U.S. Bank Trust National Association, Seattle,
Washington, serving as trustee or escrow agent or any successor trustee or escrow agent.
SECTION2. Debt Capacity. The assessed valuation of the taxable
property within the City as ascertained by the last preceding assessment for City
purposes for the calendar year 2000 is $6,468,731,941, and the City has outstanding
general indebtedness evidenced by limited tax general obligation bonds, loans, leases
and conditional sales contracts in the principal amount of $59,950,046 incurred within
the limit of up to 1-1/2% of the value of the taxable property within the City permitted
for general municipal purposes without a vote of the qualified voters therein, $9,000,000
of which will be refunded by the Bonds, unlimited tax general obligation bonds in the
principal amount of $11,425,000 incurred within the limit of up to 2-1/2% of the value
of the taxable property within the City for capital purposes only issued pursuant to a vote
of the qualified voters of the City, and the amount of indebtedness for which bonds are
authorized herein to be issued is $20,145,000.
SECTION 3. Authorization and Purposes of Bonds. The City shall
borrow money on the credit of the City and issue negotiable limited tax general
obligation various purpose and refunding bonds evidencing that indebtedness in the
amount of $20,145,000 for general City purposes to provide the funds to finance the
Projects, carry out the Refunding Plan, and to pay the costs of issuance and sale of the
bonds (the "costs of issuance"). The general indebtedness to be incurred shall be within
the limit of up to 1-1/2% of the value of the taxable property within the City permitted
for general municipal purposes without a vote of the qualified voters therein.
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The City shall issue the bonds in the manner described in this ordinance
and spend the proceeds thereof to pay costs of the Projects and to carry out the
Refunding Plan. The costs of all necessary architectural, engineering, legal and other
consulting services, inspection and testing, administrative and relocation expenses,
interim interest expenses, site acquisition or improvement, demolition, on and off-site
utilities, related improvements and all other costs incurred in connection with the
making or acquiring of the foregoing improvements constituting the Projects shall be
deemed a part of the costs of such improvements and acquisitions. The Projects shall
include all necessary furniture, equipment and appurtenances.
The City Council shall determine the application of available money
between the various parts or elements of the Projects so as to accomplish, as near as may
be, all improvements and acquisitions described. The City Council also shall determine
as appropriate the exact order, features, extent and specifications for the Projects.
If the City Council shall determine in its discretion that it has become
impractical to accomplish any of such improvements and acquisitions or portions thereof
by reason of state or local circumstances, including, but not limited to, changed
conditions or needs, regulatory considerations, incompatible development or costs
substantially in excess of those estimated, the City shall not be required to accomplish
such improvements and acquisitions and may apply the bond proceeds or any portion
thereof to other portions of the improvements and acquisitions, to other proper purposes
as the City Council may direct, or to payment of principal of or interest on the Bonds.
SECTION 4. Description of Bonds. The Bonds shall be in the
aggregate principal amount of $20,145,000; shall be dated October 1, 2000; shall be in
the denomination of $5,000 or any integral multiple thereof within a single maturity;
shall be numbered separately in the manner and with any additional designation as the
Bond Registrar deems necessary for purposes of identification; shall bear interest
(computed on the basis of a 360 -day year of twelve 30 -day months) payable
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semiannually on each June 1 and December 1, commencing December 1, 2000, to the
maturity or earlier redemption of the Bonds; and shall mature on December 1 in years
and amounts and bear interest at the rates per annum as follows:
Maturity
Interest
Years
Amounts
Rates
2000
$ 130,000
4.500%
2001
45000
4.400
2002
475,000
4.500
2003
495,000
4.500
2004
1,810,000
5.000
2005
1,905,000
5.000
2006
2,010,000
5.250
2007
1,665,000
5.250
2008
1,570,000
5.000
2009
1,000,000
5.000
2009
1,145,000
5.500
2010
1,015,000
5.500
2020
6,475,000
5.375
The term of the Bonds allocated to the various Projects does not exceed the expected
lives of the Projects to be financed with the proceeds of the Bonds.
SECTION S. Registration and Transfer o Bonds. The Bonds shall be
issued only in registered form as to both principal and interest and shall be recorded on
the Bond Register. The Bond Register shall contain the name and mailing address of
the owner of each Bond and the principal amount and number of each of the Bonds held
by each owner.
Bonds surrendered to the Bond Registrar may be exchanged 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. Any exchange or transfer shall
be without cost to the owner or transferee. The Bond Registrar shall not be obligated
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to exchange or transfer any Bond during the 15 days preceding any principal payment
or redemption date.
The Bonds initially shall be registered in the name of Cede & Co., as the
nominee of DTC. The Bonds so registered shall be held in fully immobilized form by
DTC as depository in accordance with the provisions of the Letter of Representations.
Neither the City nor the Bond Registrar shall have any responsibility or obligation to
DTC participants or the persons for whom they act as nominees with respect to the
Bonds regarding accuracy of any records maintained by DTC or DTC participants of any
amount in respect of principal of or interest on the Bonds, or any notice which is
permitted or required to be given to registered owners hereunder (except such notice as
is required to be given by the Bond Registrar to DTC).
For as long as any Bonds are held in fully immobilized form, DTC, its
nominee or its successor depository shall be deemed to be the registered owner for all
purposes hereunder and all references to registered owners, bondowners, bondholders
or the like shall mean DTC or its nominee and shall not mean the owners of any
beneficial interests in the Bonds. Registered ownership of such Bonds, or any portions
thereof, may not thereafter be transferred except: (i) to any successor of DTC or its
nominee, if that successor shall be qualified under any applicable laws to provide the
services proposed to be provided by it; (ii) to any substitute depository appointed by the
City or such substitute depository's successor; or (iii) to any person if the Bonds are no
longer held in immobilized form.
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 that it no longer wishes to continue 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.
9 LTGO Various Purpose and
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If (i) DTC or its successor (or substitute depository or its successor)
resigns from its functions as depository, and no substitute depository can be obtained,
or (ii) the City determines that the Bonds are to be in certificated form, the ownership
of Bonds may be transferred to any person as provided herein and the Bonds no longer
shall be held in fully immobilized form.
SECTION 6. Payment of Bonds. 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 checks or drafts of the Bond Registrar mailed on the interest
payment date to the registered owners at the addresses appearing on the Bond Register
on the 15th day of the month preceding the interest payment date. Principal of the
Bonds shall be payable upon presentation and surrender of the Bonds by the registered
owners at either of the principal offices of the Bond Registrar at the option of the
registered owners. Notwithstanding the foregoing, for as long as the Bonds are registered
in the name of DTC or its nominee, payment of principal of and interest on the Bonds
shall be made in the manner set forth in the Letter of Representations.
SECTION 7. Redemption Provisions and Open Market Purchase of
Bonds. Bonds maturing in the years 2001 through 2010, inclusive, shall be issued
without the right or option of the City to redeem those Bonds prior to their stated
maturity dates. The City reserves the right and option to redeem the Bonds maturing on
or after December 1, 2011, prior to their stated maturity dates at any time on or after
December 1, 2010, as a whole or in part (within one or more maturities selected by the
City and randomly within a maturity in such manner as the Bond Registrar shall
determine), at the following prices (expressed as a percentage of par), plus accrued
interest to the date fixed for redemption:
Redemption Dates
December 1, 2010, through November 30, 2011
December 1, 2011, and thereafter
Redemption Prices
101.0%
100.0
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Bonds maturing in 2020 are Term Bonds and, if not redeemed under the
optional redemption provisions set forth above or purchased in the open market under
the provisions set forth below, shall be called for redemption by lot (in such manner as
the Bond Registrar shall determine) at par plus accrued interest on December 1 in years
and amounts as follows:
Mandatory Mandatory
Redemption Redemption
Years Amounts
2011
$505,000
2012
535,000
2013
560,000
2014
590,000
2015
625,000
2016
655,000
2017
695,000
2018
730,000
2019
770,000
2020 (maturity)
810,000
If the City shall redeem Term Bonds under the optional redemption
provisions set forth above or purchase Term Bonds in the open market as set forth
below, the par amount of the Term Bonds so redeemed or purchased (irrespective of
their actual redemption or purchase prices) shall be credited against one or more
scheduled mandatory redemption amounts for those Term Bonds (as allocated by the
City) beginning not earlier than 60 days after the date of the optional redemption or
purchase, and the City shall promptly notify the Bond Registrar in writing of the manner
in which the credit for the Term Bonds so redeemed or purchased has been allocated.
Portions of the principal amount of any Bond, in installments of $5,000
or any integral multiple thereof, may be redeemed. If less than all of the principal
amount of any Bond is redeemed, upon surrender of that Bond at either of the principal
offices of the Bond Registrar, there shall be issued to the registered owner, without
11 LTGO Various Purpose and
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charge therefor, a new Bond (or Bonds, at the option of the registered owner) of the
same maturity and interest rate in any of the denominations authorized by this ordinance
in the aggregate principal amount remaining unredeemed.
The City further reserves the right and option to purchase any or all of
the Bonds in the open market at any time at any price plus accrued interest to the date
of purchase.
All Bonds purchased or redeemed under this section shall be canceled.
Notwithstanding the foregoing, for as long as the Bonds are registered
in the name of DTC or its nominee, selection of Bonds for redemption shall be in
accordance with the Letter of Representations.
SECTION 8. Notice of Redem tp ion. The City shall cause notice of any
intended redemption of Bonds to be given not less than 30 nor more than 60 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 at the
time the Bond Registrar prepares the notice, and the requirements of this sentence shall
be deemed to have been fulfilled when notice has been mailed as so provided, whether
or not it is actually received by the registered owner of any Bond. Interest on Bonds
called for redemption shall cease to accrue on the date fixed for redemption unless the
Bond or Bonds called are not redeemed when presented pursuant to the call. In addition,
the redemption notice shall be mailed within the same period, postage prepaid, to
Moody's Investors Service, Inc., and Standard & Poor's at their offices in New York,
New York, or their successors, to Lehman Brothers Inc. at its principal office in Seattle,
Washington, or its successor, to the Bond Insurer at its principal office in Armonk, New
York, or its successor, to each NRMSIR or the MSRB and to such other persons and
with such additional information as the Finance Director shall determine, but these
additional mailings shall not be a condition precedent to the redemption of Bonds.
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Notwithstanding the foregoing, for as long as the Bonds are registered in the name of
DTC or its nominee, notice of redemption shall be given in accordance with the Letter
of Representations.
SECTION 9. Failure To Redeem Bonds. If any Bond is not redeemed
when properly presented at its maturity or call date, the City shall be obligated to pay
interest on that Bond at the same rate provided in the Bond from and after its maturity
or call date until that Bond, both principal and interest, is paid in full or until sufficient
money for its payment in full is on deposit in the bond redemption fund hereinafter
created and the Bond has been called for payment by giving notice of that call to the
registered owner of each of those unpaid Bonds.
SECTION 10. Pledge of Taxes. For as long as any of the Bonds are
outstanding, the City irrevocably pledges to include in its budget and levy taxes annually
within the constitutional and statutory tax limitations provided by law without a vote of
the electors of the City on all of the taxable property within the City in an amount
sufficient, together with other money legally available and to be used therefor, to pay
when due the principal of and interest on the Bonds, and the full faith, credit and
resources of the City are pledged irrevocably for the annual levy and collection of those
taxes and the prompt payment of that principal and interest.
SECTION 11. Refunding of the Refunded Bonds.
(a) Appointment of Refunding Trustee. U.S. Bank Trust
National Association of Seattle, Washington, is appointed Refunding Trustee.
(b) Use of Bond Proceeds; Acquisition of Acquired
Obligations. A sufficient amount of the proceeds of the sale of the Bonds shall be
deposited immediately upon the receipt thereof with the Refunding Trustee and used to
discharge the obligations of the City relating to the Refunded Bonds under Ordinances
13 LTGO Various Purpose and
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Nos. 3209 and 3444 by providing for the payment of the amounts required to be paid by
the Refunding Plan. To the extent practicable, such obligations shall be discharged fully
by the Refunding Trustee's simultaneous purchase of the Acquired Obligations, bearing
such interest and maturing as to principal and interest in such amounts and at such times
so as to provide, together with a beginning cash balance, if necessary, for the payment
of the amount required to be paid by the Refunding Plan. The Acquired Obligations are
listed and more particularly described in Schedule A attached to the Refunding Trust
Agreement between the City and the Refunding Trustee, but are subject to substitution
as set forth below. Any Bond proceeds or other money deposited with the Refunding
Trustee not needed to purchase the Acquired Obligations and provide a beginning cash
balance, if any, and, if applicable, pay the costs of issuance of the Bonds shall be
returned to the City at the time of delivery of the Bonds to the initial purchaser thereof
and deposited in the Bond Fund to pay interest on the Bonds on the first interest
payment date.
(c) Substitution of Acquired Obli atm. Prior to the
purchase of any Acquired Obligations by the Refunding Trustee, the City reserves the
right to substitute other Government Obligations for any of the Acquired Obligations
and to use any savings created thereby for any lawful City purpose if, (a) in the opinion
of Foster Pepper & Shefelman PLLC, the City's bond counsel, the interest on the Bonds
and the Refunded Bonds will remain excluded from gross income for federal income tax
purposes under Sections 103, 148, and 149(d) of the Code, and (b) such substitution
shall not impair the timely payment of the amounts required to be paid by the Refunding
Plan, as verified by a nationally recognized independent certified public accounting firm.
After the purchase of the Acquired Obligations by the Refunding
Trustee, the City reserves the right to substitute therefor cash or Government
Obligations subject to the conditions that such money or securities held by the
Refunding Trustee shall be sufficient to carry out the Refunding Plan, that such
substitution will not cause the Bonds and the Refunded Bonds to be arbitrage bonds
14 LTGO Various Purpose and
Refunding Bonds, 2000
within the meaning of Section 148 of the Code and regulations thereunder in effect on
the date of such substitution and applicable to obligations issued on the issue date of the
Bonds, and that the City obtain, at its expense: (1) a verification by a nationally
recognized independent certified public accounting firm acceptable to the Refunding
Trustee confirming that the payments of principal of and interest on the substitute
securities, if paid when due, and any other money held by the Refunding Trustee will
be sufficient to carry out the Refunding Plan; and (2) an opinion from Foster Pepper &
Shefelman PLLC, bond counsel to the City, its successor, or other nationally recognized
bond counsel to the City, to the effect that the disposition and substitution or purchase
of such securities, under the statutes, rules, and regulations then in force and applicable
to the Bonds, will not cause the interest on the Bonds or the Refunded Bonds to be
included in gross income for federal income tax purposes and that such disposition and
substitution or purchase is in compliance with the statutes and regulations applicable to
the Bonds. Any surplus money resulting from the sale, transfer, other disposition, or
redemption of the Acquired Obligations and the substitutions therefor shall be released
from the trust estate and transferred to the City to be used for any lawful City purpose.
(d) Administration of Refundiniz Plan. The Refunding
Trustee is authorized and directed to purchase the Acquired Obligations (or Government
Obligations) and to make the payments required to be made by the Refunding Plan from
the Acquired Obligations (or Government Obligations) and money deposited with the
Refunding Trustee pursuant to this ordinance. All Acquired Obligations (or
Government Obligations) and the money deposited with the Refunding Trustee and any
income therefrom shall be held irrevocably, invested and applied in accordance with the
provisions of Ordinances Nos. 3209 and 3444, this ordinance, chapter 39.53 RCW and
other applicable statutes of the State of Washington and the Refunding Trust Agreement.
All necessary and proper fees, compensation, and expenses of the Refunding Trustee
for the Bonds and all other costs incidental to the setting up of the escrow to accomplish
the refunding of the Refunded Bonds and costs related to the issuance and delivery of
the Bonds, including bond printing, verification fees, bond insurance premium, bond
15 LTGO Various Purpose and
Refunding Bonds, 2000
counsel's fees, and other related expenses, shall be paid out of the proceeds of the
Bonds.
(e) Authorization for Refunding Trust Agreement. To carry
out the Refunding Plan provided for by this ordinance, the Mayor or Finance Director
of the City is authorized and directed to execute and deliver to the Refunding Trustee
a Refunding Trust Agreement substantially in the form on file with the City Clerk and
by this reference made a part hereof setting forth the duties, obligations and
responsibilities of the Refunding Trustee in connection with the payment, redemption,
and retirement of the Refunded Bonds as provided herein and stating that the provisions
for payment of the fees, compensation, and expenses of such Refunding Trustee set forth
therein are satisfactory to it. Prior to executing the Refunding Trust Agreement, the
Mayor or Finance Director of the City is authorized to make such changes therein that
do not change the substance and purpose thereof or that assure that the escrow provided
therein and the Bonds are in compliance with the requirements of federal law governing
the exclusion of interest on the Bonds from gross income for federal income tax
purposes.
SECTION 12. Call for Redemption of the 1995 Refunded Bonds. The
City calls for redemption on December 1, 2004, all of the 1995 Refunded Bonds at
101% of par plus accrued interest. Such call for redemption shall be irrevocable after
the delivery of the Bonds to the initial purchaser thereof. The date on which the 1995
Refunded Bonds are herein called for redemption is the first date on which those bonds
may be called.
The proper City officials are authorized and directed to give or cause to
be given such notices as required, at the times and in the manner required, pursuant to
Ordinance No. 3209 in order to effect the redemption prior to their maturity of the 1995
Refunded Bonds.
16 LTGO Various Purpose and
Refunding Bonds, 2000
SECTION 13. City Findings with Respect to Re unding. The City
Council of the City finds and determines that the issuance and sale of the Bonds at this
time will effect a savings to the City and is in the best interest of the City and its
taxpayers and in the public interest. In making such finding and determination, the City
Council has given consideration to the fixed maturities of the Bonds and the Refunded
Bonds, the costs of issuance of the Bonds allocable to the refunding and the known
earned income from the investment of the proceeds of the issuance and sale of the Bonds
used in the Refunding Plan pending payment and redemption of the Refunded Bonds.
The City Council further finds and determines that the money to be
deposited with the Refunding Trustee for the Refunded Bonds in accordance with
Section 11 of this ordinance will discharge and satisfy the obligations of the City under
Ordinances Nos. 3209 and 3444 with respect to the Refunded Bonds, and the pledges,
charges, trusts, covenants, and agreements of the City therein made or provided for as
to the Refunded Bonds, and that the Refunded Bonds shall no longer be deemed to be
outstanding under such ordinances immediately upon the deposit of such money with
the Refunding Trustee.
SECTION 14. Bond Fund and Deposit of Bond Proceeds. The Bond
Fund is created and established in the office of the Finance Director a special fund
designated as the Limited Tax General Obligation Various Purpose and Refunding Bond
Fund, 2000, for the purpose of paying principal of and interest on the Bonds. Accrued
interest on the Bonds, if any, received from the sale and delivery of the Bonds shall be
paid into the Bond Fund. All taxes collected for and allocated to the payment of the
principal of and interest on the Bonds shall be deposited in the Bond Fund.
There also is created and established in the office of the Finance Director
a special fund designated as the 2000 LTGO Project Fund (the "Project Fund"). The
remaining principal proceeds received from the sale and delivery of the Bonds after
deposit with the Refunding Trustee of a sufficient amount to carry out the Refunding
17 LTGO Various Purpose and
Refunding Bonds, 2000
Plan as described in Section 11 herein, shall be paid into the Project Fund and used to
pay the costs of the Projects and costs of issuance of the Bonds. Until needed to pay
those costs, the City may invest principal proceeds temporarily in any legal investment,
and the investment earnings may be retained in the Project Fund and be spent for the
purposes of that fund except that earnings subject to a federal tax or rebate requirement
may be withdrawn from the Project Fund and used for those tax or rebate purposes.
SECTION 15. Form and Execution of Bonds. The Bonds shall be
printed or lithographed on good bond paper in a form consistent with the provisions of
this ordinance and state law and shall be signed by the Mayor and City Clerk, either or
both of whose signatures may be manual or in facsimile, and the seal of the City or a
facsimile reproduction thereof shall be impressed or printed thereon.
Only Bonds bearing a Certificate of Authentication in the following
form, manually signed by the Bond Registrar, shall be valid or obligatory for any
purpose or entitled to the benefits of this ordinance:
CERTIFICATE OF AUTHENTICATION
This Bond is one of the fully registered City of Kent, Washington,
Limited Tax General Obligation Various Purpose and Refunding Bonds,
2000, described in the Bond Ordinance.
WASHINGTON STATE FISCAL
AGENT, Bond Registrar
LOW
Authorized Signer
The authorized signing of a 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.
PCftlIO�TO-B OrS-n 18 LTGO Various Purpose and
Refunding Bonds, 2000
If any officer whose facsimile signature appears on the Bonds ceases to
be an officer of the City authorized to sign bonds before the Bonds bearing his or her
facsimile signature are authenticated or delivered by the Bond Registrar or issued by the
City, those Bonds nevertheless may be authenticated, issued and delivered and, when
authenticated, issued and delivered, shall be as binding on the City as though that person
had continued to be an officer of the City authorized to sign bonds. Any Bond also may
be signed on behalf of the City by any person who, on the actual date of signing of the
Bond, is an officer of the City authorized to sign bonds, although he or she did not hold
the required office on the date of issuance of the Bonds.
SECTION 16. Bond Rezistrar. The Bond Registrar shall keep, or cause
to be kept, at its principal corporate trust office, sufficient books for the registration and
transfer of the Bonds, which shall be open to inspection by the City at all times. The
Bond Registrar is authorized, on behalf of the City, to authenticate and deliver Bonds
transferred or exchanged in accordance with the provisions of the Bonds and this
ordinance, to serve as the City's paying agent for the Bonds and to carry out all of the
Bond Registrar's powers and duties under this ordinance and City Ordinance No. 2418
establishing a system of registration for the City's bonds and obligations.
The Bond Registrar shall be responsible for its representations contained
in the Bond Registrar's 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, to the extent permitted by law, may act as depository for and permit
any of its officers or directors to act as members of, or in any other capacity with respect
to, any committee formed to protect the rights of Bond owners.
SECTION 17. Preservation of Tax Exemption for Interest on Bonds.
The City covenants that it will take all actions necessary to prevent interest on the Bonds
from being included in gross income for federal income tax purposes, and it will neither
take any action nor make or permit any use of proceeds of the Bonds or other funds of
19 LTGO Various Purpose and
Refunding Bonds, 2000
the City treated as proceeds of the Bonds at any time during the term of the Bonds which
will cause interest on the Bonds to be included in gross income for federal income tax
purposes. The City also covenants that it will, to the extent the arbitrage rebate
requirement of Section 148 of the Code, is applicable to the Bonds, take all actions
necessary to comply (or to be treated as having complied) with that requirement in
connection with the Bonds, including the calculation and payment of any penalties that
the City has elected to pay as an alternative to calculating rebatable arbitrage, and the
payment of any other penalties if required under Section 148 of the Code to prevent
interest on the Bonds from being included in gross income for federal income tax
purposes. The City certifies that it has not been notified of any listing or proposed
listing by the Internal Revenue Service to the effect that it is a bond issuer whose
arbitrage certifications may not be relied upon.
SECTION 18. Refunding or Defeasance of the Bonds. The City may
issue refunding bonds pursuant to the laws of the State of Washington or use money
available from any other lawful source to pay when due the principal of and interest on
the Bonds, or any portion thereof included in a refunding or defeasance plan, and to
redeem and retire, refund or defease all such then -outstanding Bonds (hereinafter
collectively called the "defeased Bonds") and to pay the costs of the refunding or
defeasance. If money and/or direct obligations of the United States of America maturing
at a time or times and bearing interest in amounts (together with money, if necessary)
sufficient to redeem and retire, refund or defease the defeased Bonds in accordance with
their terms are set aside in a special trust fund or escrow account irrevocably pledged to
that redemption, retirement or defeasance of defeased Bonds (hereinafter called the
"trust account'), then all right and interest of the owners of the defeased Bonds in the
covenants of this ordinance and in the funds and accounts obligated to the payment of
the defeased Bonds shall cease and become void. The owners of defeased Bonds shall
have the right to receive payment of the principal of and interest on the defeased Bonds
from the trust account. The City shall include in the refunding or defeasance plan such
provisions as the City deems necessary for the random selection of any defeased Bonds
20 LTGO Various Purpose and
Refunding Bonds, 2000
that constitute less than all of a particular maturity of the Bonds, for notice of the
defeasance to be given to the owners of the defeased Bonds and to such other persons
as the City shall determine, and for any required replacement of Bond certificates for
defeased Bonds. The defeased Bonds shall be deemed no longer outstanding, and the
City may apply any money in any other fund or account established for the payment or
redemption of the defeased Bonds to any lawful purposes as it shall determine.
If the Bonds are registered in the name of DTC or its nominee, notice of
any defeasance of Bonds shall be given to DTC in the manner prescribed in the Letter
of Representations for notices of redemption of Bonds.
Notwithstanding anything in this section to the contrary, if the principal
of and/or interest due on the Bonds is paid by the Bond Insurer pursuant to the
Municipal Bond Insurance Policy, the Bonds shall be treated as remaining outstanding
for all purposes and shall not be considered paid by the City, and the covenants,
agreements and other obligations of the City to the registered owners of the Bonds shall
continue to exist, and the Bond Insurer shall be subrogated to the rights of the registered
owners.
SECTION 19. Approval ofBond Purchase Contract. Lehman Brothers
Inc. of Seattle, Washington, has presented a purchase contract (the "Bond Purchase
Contract") to the City offering to purchase the Bonds under the terms and conditions
provided in the Bond Purchase Contract, which written Bond Purchase Contract is on
file with the City Clerk and is incorporated herein by this reference. The City Council
finds that entering into the Bond Purchase Contract is in the City's best interest and
therefore accepts the offer contained therein and authorizes its execution by City
officials.
The Bonds will be printed at City expense and will be delivered to the
purchaser in accordance with the Bond Purchase Contract, with the approving legal
21 LTGO Various Purpose and
Refunding Bonds, 2000
opinion of Foster Pepper & Shefelman PLLC, municipal bond counsel of Seattle,
Washington, regarding the Bonds.
The proper City officials are authorized and directed to do everything
necessary for the prompt delivery of the Bonds to the purchaser and for the proper
application and use of the proceeds of the sale thereof.
SECTION 20. Preliminary Oficial Statement Deemed Final. The City
Council has been provided with copies of a preliminary official statement dated
September 6, 2000 (the "Preliminary Official Statement"), prepared in connection with
the sale of the Bonds. For the sole purpose of the Bond purchaser's compliance with
Securities and Exchange Commission Rule 15c2 -12(b)(1), the City "deems final" that
Preliminary Official Statement as of its date, except for the omission of information as
to offering prices, interest rates, selling compensation, aggregate principal amount,
principal amount per maturity, maturity dates, options of redemption, delivery dates,
ratings and other terms of the Bonds dependent on such matters.
SECTION 21. Undertaking to Provide Continuing Disclosure. To meet
the requirements of United States Securities and Exchange Commission ("SEC") Rule
15c2 -12(b)(5) (the "Rule"), as applicable to a participating underwriter for the Bonds,
the City makes the following written undertaking (the "Undertaking") for the benefit of
holders of the Bonds:
(a) Undertaking to Provide Annual Financial Information
and Notice of Material Events. The City undertakes to provide or cause
to be provided, either directly or through a designated agent:
(i) To each nationally recognized municipal securities
information repository designated by the SEC in accordance with
the Rule ("NRMSIR") and to a state information depository, if
any, established in the State of Washington (the "SID") annual
financial information and operating data of the type included in the
final official statement for the Bonds and described in subsection
(b) of this section ("annual financial information");
22 LTGO Various Purpose and
Refunding Bonds, 2000
(ii) To each NRMSIR or the Municipal Securities
Rulemaking Board ("MSRB'�, and to the SID, timely notice of the
occurrence of any of the following events with respect to the
Bonds, if material: (1) principal and interest payment
delinquencies; (2) non-payment related defaults; (3) unscheduled
draws on debt service reserves reflecting financial difficulties; (4)
unscheduled draws on credit enhancements reflecting financial
difficulties; (5) substitution of credit or liquidity providers, or their
failure to perform; (6) adverse tax opinions or events affecting the
tax-exempt status of the Bonds; (7) modifications to rights of
holders of the Bonds; (8) Bond calls (other than scheduled
mandatory redemptions of Term Bonds); (9) defeasances; (10)
release, substitution, or sale of property securing repayment of the
Bonds; and (11) rating changes; and
(iii) To each NRMSIR or to the MSRB, and to the SID,
timely notice of a failure by the City to provide required annual
financial information on or before the date specified in subsection
(b) of this section.
(b) Type of Annual Financial Information Undertaken to be
Provided. The annual financial information that the City undertakes to
provide in subsection (a) of this section:
(i) Shall consist of (1) annual financial statements
prepared (except as noted in the financial statements) in
accordance with applicable generally accepted accounting
principles promulgated by the Government Accounting Standards
Board ("GASB"), as such principles may be changed from time to
time, which statements shall not be audited, except, however, that
if and when audited financial statements are otherwise prepared
and available to the City they will be provided; (2) a statement of
the City's general obligation debt service requirements; and (3)
an update of the information set forth in tables 1, 4, 5, 6, 7 and
8 of the Official Statement for the Bonds;
(ii) Shall be provided to each NRMSIR and the SID,
not later than the last day of the ninth month after the end of each
fiscal year of the City (currently, a fiscal year ending December
31), as such fiscal year may be changed as required or permitted by
State law, commencing with the City's fiscal year ending
December 31, 2000; and
PC,Wb� TO.�23 LTGO Various Purpose and
Refunding Bonds, 2000
(iii) May be provided in a single or multiple documents,
and may be incorporated by reference to other documents that have
been filed with each NRMSIR and the SID, or, if the document
incorporated by reference is a "final official statement" with
respect to other obligations of the City, that has been filed with the
MSRB.
(c) Amendment of Undertaking. The Undertaking is subject
to amendment after the primary offering of the Bonds without the consent
of any holder of any Bond, or of any broker, dealer, municipal securities
dealer, participating underwriter, rating agency, NRMSIR, the SID or the
MSRB, under the circumstances and in the manner pernutted by the Rule.
The City will give notice to each NRMSIR or the MSRB, and the
SID, of the substance (or provide a copy) of any amendment to the
Undertaking and a brief statement of the reasons for the amendment. If the
amendment changes the type of annual financial information to be
provided, the annual financial information containing the amended
financial information will include a narrative explanation of the effect of
that change on the type of information to be provided.
(d) Beneficiaries. The Undertaking evidenced by this section
shall inure to the benefit of the City and any holder of Bonds, and shall not
inure to the benefit of or create any rights in any other person.
(e) Termination ofUndertakint. The City's obligations under
this Undertaking shall terminate upon the legal defeasance of all of the
Bonds. In addition, the City's obligations under this Undertaking shall
terminate if those provisions of the Rule which require the City to comply
with this Undertaking become legally inapplicable in respect of the Bonds
for any reason, as confirmed by an opinion of nationally recognized bond
counsel or other counsel familiar with federal securities laws delivered to
the City, and the City provides timely notice of such termination to each
NRMSIR or the MSRB and the SID.
(f) Remedy for Failure to Comply with Undertaking. As soon
as practicable after the City learns of any failure to comply with the
Undertaking, the City will proceed with due diligence to cause such
noncompliance to be corrected. No failure by the City or other obligated
person to comply with the Undertaking shall constitute a default in respect
of the Bonds. The sole remedy of any holder of a Bond shall be to take
such actions as that holder deems necessary, including seeking an order of
specific performance from an appropriate court, to compel the City or
other obligated person to comply with the Undertaking.
24 LTGO Various Purpose and
Refunding Bonds, 2000
(g) Designation of Official Responsible to Administer
Undertaking. The Finance Director (or such other officer of the City who
may in the future perform the duties of that office) or his or her designee
is authorized and directed in his or her discretion to take such further
actions as may be necessary, appropriate or convenient to carry out the
Undertaking of the City in respect of the Bonds set forth in this section and
in accordance with the Rule, including, without limitation, the following
actions:
(i) Preparing and filing the annual financial
information undertaken to be provided;
(ii) Determining whether any event specified in
subsection (a) has occurred, assessing its materiality with respect
to the Bonds, and, if material, preparing and disseminating notice
of its occurrence;
(iii) Determining whether any person other than the
City is an "obligated person" within the meaning of the Rule with
respect to the Bonds, and obtaining from such person an
undertaking to provide any annual financial information and notice
of material events for that person in accordance with the Rule;
(iv) Selecting, engaging and compensating designated
agents and consultants, including but not limited to financial
advisors and legal counsel, to assist and advise the City in carrying
out the Undertaking; and
(v) Effecting any necessary amendment of the
Undertaking.
SECTION 22. Bond Insurance. The City Council finds that it is in the
City's best interest to purchase, and that a savings will result from purchasing, the
Municipal Bond Insurance Policy for the Bonds. The City shall purchase from the Bond
Insurer the Municipal Bond Insurance Policy insuring the prompt payment of the
principal of and interest on the Bonds and agrees to the conditions for obtaining that
policy, including the payment of the premium therefor and the following provisions
entitled "Payments under the Policy" required by the Bond Insurer to be included in this
ordinance:
A�•�=o.�a.� 25 LTGO Various Purpose and
Refunding Bonds, 2000
A. In the event that, on the second Business Day, and again on
the Business Day, prior to the payment date on the Obligations, the Paying
Agent [the Bond Registrar] has not received sufficient moneys to pay all
principal of and interest on the Obligations due on the second following
or following, as the case may be, Business Day, the Paying Agent shall
immediately notify the Insurer or its designee on the same Business Day
by telephone or telegraph, confirmed in writing by registered or certified
mail, of the amount of the deficiency.
B. If the deficiency is made up in whole or in part prior to or
on the payment date, the Paying Agent shall so notify the Insurer or its
designee.
C. In addition, if the Paying Agent has notice that any
Bondholder has been required to disgorge payments of principal or interest
on the Obligation to a trustee in Bankruptcy or creditors or others pursuant
to a final judgment by a court of competent jurisdiction that such payment
constitutes a voidable preference to such Bondholder within the meaning
of any applicable bankruptcy laws, then the Paying Agent shall notify the
Insurer or its designee of such fact by telephone or telegraphic notice,
confirmed in writing by registered or certified mail.
D. The Paying Agent is hereby irrevocably designated,
appointed, directed and authorized to act as attorney-in-fact for Holders of
the Obligations as follows:
1. If and to the extent there is a deficiency in amounts
required to pay interest on the Obligations, the Paying Agent shall
(a) execute and deliver to State Street Bank and Trust Company,
N.A., or its successors under the Policy (the "Insurance Paying
Agent'), in form satisfactory to the Insurance Paying Agent, an
instrument appointing the Insurer as agent for such Holders in any
legal proceeding related to the payment of such interest and an
assignment to the Insurer of the claims for interest to which such
deficiency relates and which are paid by the Insurer, (b) receive as
designee of the respective Holders (and not as Paying Agent) in
accordance with the tenor of the Policy payment from the
Insurance Paying Agent with respect to the claims for interest so
assigned, and (c) disburse the same to such respective Holders; and
2. If and to the extent of a deficiency in amounts
required to pay principal of the Obligations, the Paying Agent shall
(a) execute and deliver to the Insurance Paying Agent in form
satisfactory to the Insurance Paying Agent an instrument
26 LTGO Various Purpose and
Refunding Bonds, 2000
appointing the Insurer as agent for such Holder in any legal
proceeding relating to the payment of such principal and an
assignment to the Insurer of any of the Obligation surrendered to
the Insurance Paying agent of so much of the principal amount
thereof as has not previously been paid or for which moneys are
not held by the Paying Agent and available for such payment (but
such assignment shall be delivered only if payment from the
Insurance Paying Agent is received), (b) receive as designee of the
respective Holders (and not as Paying Agent) in accordance with
the tenor of the Policy payment therefor from the Insurance Paying
Agent, and (c) disburse the same to such Holders.
E. Payments with respect to claims for interest on and
principal of Obligations disbursed by the Paying Agent from proceeds of
the Policy shall not be considered to discharge the obligation of the Issuer
with respect to such Obligations, and the Insurer shall become the owner
of such unpaid Obligations and claims for the interest in accordance with
the tenor of the assignment made to it under the provisions of this
subsection or otherwise.
F. Irrespective of whether any such assignment is executed
and delivered, the Issuer and the Paying Agent hereby agree for the benefit
of the Insurer that:
1. They recognize that to the extent the Insurer makes
payments, directly or indirectly (as by paying through the Paying
Agent), on account of principal of or interest on the Obligations,
the Insurer will be subrogated to the rights of such Holders to
receive the amount of such principal and interest from the Issuer,
with interest thereon as provided and solely from the sources
stated in this Indenture and the Obligations; and
2. They will accordingly pay to the Insurer the amount
of such principal and interest (including principal and interest
recovered under subparagraph (ii) of the first paragraph of the
Policy, which principal and interest shall be deemed past due and
not to have been paid), with interest thereon as provided in this
Indenture and the Obligations, but only from the sources and in the
manner provided herein for the payment of principal of and
interest on the Obligations to Holders, and will otherwise treat the
Insurer as the owner of such rights to the amount of such principal
and interest.
27 LTGO Various Purpose and
Refunding Bonds, 2000
G. In connection with the issuance of additional Obligations,
the Issuer shall deliver to the Insurer a copy of the disclosure document, if
any, circulated with respect to such additional Obligations.
H. Copies of any amendments made to the documents
executed in connection with the issuance of the Obligations which are
consented to by the Insurer shall be sent to Standard & Poor's Corporation.
I. The Insurer shall receive notice of the resignation or
removal of the Paying Agent and the appointment of a successor thereto.
J. The Insurer shall receive copies of all notices required to
be delivered to Bondholders and, on an annual basis, copies of the Issuer's
audited financial statements and Annual Budget.
Notices: Any notice that is required to be given to a holder of the
Obligation or to the Paying Agent pursuant to the Indenture shall also be
provided to the Insurer. All notices required to be given to the Insurer
under the Indenture shall be in writing and shall be sent by registered or
certified mail addressed to MBIA Insurance Corporation, 113 King Street,
Armonk, New York 10504 Attention: Surveillance.
SECTION 23: Severability. If any one or more sections, subsections,
or sentences of this ordinance are held to be unconstitutional or invalid, such decision
shall not affect the validity of the remaining portion of this ordinance and the same shall
remain in full force and effect.
28 LTGO Various Purpose and
Refunding Bonds, 2000
SECTION24: Effective Date. This ordinance shall take effect and be in
force five (5) days from and after its passage, approval and publication as provided by
law.
A W O. 1120 TEPI
ATTEST:
BRENDA JACOBE, ITY CLERK
APPROVED AS TO FORM:
A. LUBOVICH, CITY
PASSED: day of 2000.
APPROVED: day of ide�& v_,2000.
PUBLISHED: a ai day of2000.
I hereby certify that this is a true copy of Ordinance No. 3524, passed by
the City Council of the City of Kent, Washington, and approved by the Mayor of the
City of Kent as hereon indicated.
(SEAL) 4BRENDAJACOB
ITY CLERK
29 LTGO Various Purpose and
Refunding Bonds, 2000
EXHIBIT A
PROJECT DESCRIPTION
rpje
Descri tion
i ht Rail Parking Garage
City's share authorized by Council on May 5, 1998
erforming Arts/Civic
enter Land Acquisition
Repayment of the City's Water Fund for funds used for part
of land acquisition and to provide additional funds for
ac uisition of additional land
Facilities Remodel and
Back-up Generators
Centennial remodeling for Permit Center and relocation of
departments and additional costs related to the back-up
generator proj'ect as approved by Council on February 1, 2000
olice Headquarters Land
c uisition
Additional costs of land acquisition not covered in original
budget
ire Engine/Aid Trucks
Ac uisition of two fully -equipped engine/aid apparatus
50193413.05 A-1 LTGO Bonds, 2000