HomeMy WebLinkAbout2576CITY OF KENT, WASHINGTON
ORDINANCE NO . ,:Z.5 7&
AN ORDINANCE of the City of Kent. Washington,
relating to local improvement districts; establishing
Consolidated Local Improvement District No. 308,
et al. and Consolidated Local Improvement Fund,
District No. 308, et al.; fixing the amount, form,
date, interest rates, maturity and denominations of
the Consolidated Local Improvement District No. 308,
et al. Bonds; providing for the sale and delivery
thereof to Shearson Lehman Brothers Inc., Foster &
Marshall Division, in Seattle. Washington; and fixing
the interest rate on local improvement district
assessment installments.
WHEREAS. the City Council of the City heretofore has
created Local Improvement Districts Nos. 308, 314 and 317 for
various purposes; and
WHEREAS, RCW 35.45.160 authorizes the establishment of
consolidated local improvement districts for the purpose of
issuing bonds only and provides that if the governing body of
any municipality orders the creation of such consolidated local
improvement district, the money received from the installment
payments of the principal of and interest on assessments levied
within the original local improvement districts shall be depos-
ited in a consolidated local improvement district bond redemp-
tion fund to be used to redeem outstanding consolidated local
improvement district bonds; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DO ORDAIN
as follows:
Section 1. For the purpose of issuing bonds only, those
local improvement districts of the City of Kent, Washington (the
"City"). established by the following ordinances, respectively.
the 30 -day period for making cash payment of assessments without
interest in each local improvement district having expired in
the case of the assessments for each local improvement district,
are consolidated into a consolidated local improvement district
to be known and designated as Consolidated Local Improvement
District No. 308. et al.:
Local Improvement
District No.
308
314
317
Created by
Ordinance No.
2363, as amended
2441
2475
Section 2. There is created and established in the office
of the City Treasurer for Consolidated Local Improvement
District No. 308, et al. a special consolidated local improve-
ment district fund to be known and designated as Consolidated
Local Improvement Fund, District No. 308, et al. (the "Bond
Fund"). All money presently on hand representing collections
pertaining to installments of assessments and interest thereon
in each of the local improvement districts listed in Section 1
shall be transferred to and deposited in the Bond Fund, and all
collections pertaining to assessments on the assessment rolls of
those local improvement districts when hereafter received shall
be deposited in the Bond Fund to redeem outstanding Consolidated
Local Improvement District No. 308, et al. bonds.
Section 3. Consolidated Local Improvement District No.
308, et al. bonds (the "Bonds") shall be issued in the total
principal sum of $489,471.75, being the total amount on the
assessment rolls of Local Improvement Districts Nos. 308, 314
and 317 remaining uncollected after the expiration of the 30 -day
interest-free prepayment period. The Bonds shall be dated
September 1, 1985. shall mature on September 1, 1997, and shall
be numbered from 1 to 98. inclusive. in the manner and with any
additional designation as the Bond Registrar (collectively, the
fiscal agencies of the State of Washington located in Seattle,
Washington, and New York, New York) deems necessary for the
purpose of identification. Bond No. 1 shall be in the denomina-
tion of $4,471.75 and Bonds Nos. 2 to 98, inclusive, shall be in
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the denomination of $5,000.00 each. Interest shall be computed
on the basis of a 360 -day year of twelve 30 -day months. Inter-
est shall be payable annually beginning September 1, 1986, in
accordance with the following schedule:
Bond
Numbers
Interest
Inclusive
Amounts
Rates
1
to 10
$ 49,471.75
9.50%
11
to 33
115,000.00
8.00
34
to 44
55,000.00
8.75
45
to 65
105,000.00
9.00
66
to 82
85,000.00
9.50
83
to 98
80,000.00
9.75
The Bonds shall be issued only in registered form as to
both principal and interest on books or records maintained by
the Bond Registrar (the "Bond Register"). Such Bond Register
shall contain the name and mailing address of the owner of each
Bond and the principal amount and number of Bonds held by each
owner.
Bonds may be transferred only if endorsed in the manner
provided thereon and surrendered to the Bond Registrar. The
transfer of a Bond shall be by the Bond Registrar's receiving
the Bond to be transferred, cancelling it and issuing a new
certificate in the form of the Bonds to the transferee after
registering the name and address of the transferee on the Bond
Register. The new certificate shall bear the same Bond number
as the transferred Bond but may have a different inventory
reference number or control number. Such exchange or transfer
shall be without cost to the owner or transferee.
Both principal of and interest on the Bonds shall be
payable solely out of the Bond Fund and from the Local Improve-
ment Guaranty Fund of the City, and shall be payable in lawful
money of the United States of America. Interest on the Bonds
shall be paid by check or draft mailed to the registered owners
at the addresses appearing on the Bond Register on the 15th day
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of the month preceding the interest payment date. The principal
of the Bonds shall be payable upon presentation and surrender of
the Bonds by the registered owners at the principal offices of
either of the fiscal agencies of the State of Washington in
Seattle, Washington, and New York, New York, at the option of
such owners.
The City reserves the right to redeem the Bonds prior to
their stated maturity on any interest payment date, in numerical
order, lowest numbers first, at par plus accrued interest,
whenever there shall be sufficient money in the Bond Fund to pay
the Bonds so called and all earlier numbered Bonds over and
above the amount required for the payment of the interest on all
unpaid Bonds, by mailing, not less than 15 nor more than 30 days
prior to the date fixed for redemption, notice of such redemp-
tion by first class mail, postage prepaid, to the registered
owner of any Bond to be redeemed at the address appearing on the
Bond Register. The requirements of this section shall be deemed
to be complied with when notice is mailed as herein provided
whether or not it is actually received by the owner of any
Bonds. The interest on the Bonds so called for redemption shall
cease on the date fixed for redemption unless such Bond or Bonds
so called are not redeemed upon presentation made pursuant to
such call.
Section 4. The Bonds shall be printed, lithographed or
typed on good bond paper in a form consistent with the provi-
sions of this ordinance and state law, shall be signed by the
Mayor and the City Clerk, both of whose signatures shall be in
facsimile, and shall have a facsimile reproduction of the seal
of the City printed thereon.
Only such Bonds as shall bear thereon a Certificate of
Authentication in the following form, manually executed by the
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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, Consolidated Local Improvement
District No. 308, et al.. Bonds described in the Bond
Ordinance.
Washington State Fiscal Agency
Bond Registrar
By
Authorized Officer
Such Certificate of Authentication shall be conclusive evidence
that the Bonds so authenticated have been duly executed, authen-
ticated and delivered hereunder and are entitled to the benefits
of this ordinance.
In case either or both of the officers who shall have
executed the Bonds shall cease to be such officer or officers of
the City before the Bonds so signed shall have been authenti-
cated or delivered by the Bond Registrar, or issued by the City,
such Bonds may nevertheless be authenticated, delivered and
issued and upon such authentication, delivery and issuance,
shall be as binding upon the City as though those who signed the
same had continued to be such officers of the City. Any Bond
also may be signed on behalf of the City by such persons as at
the actual date of execution of such Bond shall be proper
officers of the City although at the original date of such Bond
any such person shall not have been such officer of the City.
Section 5. 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 at
all times be open to inspection by the City. The Bond Registrar
is authorized, on behalf of the City, to authenticate and
deliver Bonds transferred or exchanged in accordance with the
provisions of such Bonds and this ordinance and to carry out all
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of the Bond Registrar's powers and duties under this ordinance
and Ordinance No. 2418 of the City.
The Bond Registrar shall be responsible for its representa-
tions contained in the 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 6. The Bonds shall be negotiable instruments to
the extent provided by RCW 62A.8-102 and 62A.8-105.
Section 7. The City covenants that it will spend the
principal proceeds of the Bonds with due diligence to completion
of the purposes specified in this ordinance and will make no use
of the proceeds of the Bonds or other funds of the City at any
time during the term of the Bonds which will cause the Bonds to
be arbitrage bonds within the meaning of Section 103(c) of the
United States Internal Revenue Code of 1954, as amended, and the
applicable regulations promulgated thereunder.
Section 8. Shearson Lehman Brothers Inc., Foster &
Marshall Division, in Seattle, Washington, has submitted an
offer to purchase all of the Bonds at a price of $98.50 per each
$100 of par value, plus accrued interest from the date of the
Bonds to the date of their delivery to the purchaser, the City
to furnish the printed Bonds and the approving legal opinion of
Roberts & Shefelman, municipal bond counsel of Seattle,
Washington, at the City's expense. Bond counsel shall not be
required to review or express any opinion concerning the com-
pleteness or accuracy of any official statement, offering
circular or other sales material issued or used in connection
with the Bonds, and bond counsel's opinion shall so state. The
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City Council, deeming that it is in the best interest of the
City that such offer be accepted, accepts the same. The Bonds
shall, therefore, immediately upon their execution. be delivered
to Shearson Lehman Brothers Inc.. Foster & Marshall Division, in
Seattle. Washington. upon payment therefor in accordance with
such offer.
Section 9. The interest rate on the installments and
delinquent payments of the special assessments in Local Improve-
ment Districts Nos. 308. 314 and 317 are revised and fixed at
the rate of 9.72% per annum.
Section 10. This ordinance shall take effect and be in
force five (5) days from and after its pa6sage, approval and
publication as provided by law.
PASSED by the City Council and APPROVED by the Mayor of the
City of Kent. Washington, at a regular open public meeting
thereof this 19th day of August. 1985.
ATTEST:
City Clerkr
APPROVED AS TO FORM:
City Attorney
PUBLISHED:
1848k
Mayor
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