HomeMy WebLinkAbout3731Ordinance No. 3731
(Amending or Repealing Ordinances)
CFN=104 - Finance
Passed - 12/14/2004
CLID No. 353 et al Bonds
CITY OF KENT, WASHINGTON
ORDINANCE NO. _�,? -7,41
AN ORDINANCE of the City Council of the City of Kent,
Washington, relating to local improvement districts; establishing
Consolidated Local Improvement District No. 353 et al., by
consolidating Local Improvement Districts Nos. 353, 355, 356 and
357, and creating Consolidated Local Improvement Fund, District
No. 353 et al.; fixing the amount, form, date, interest rates, maturity,
and denominations of the Consolidated Local Improvement District
No. 353 et al. Bonds; providing for the sale and delivery thereof to
Banc of America Securities LLC of Seattle, Washington; and fixing
the interest rate on local improvement district assessment
installments.
PASSED: DECEMBER 14, 2004
This document prepared by
FOPSTER PEPPER & SHEFELMAN PLLC
1111 Third Avenue, Suite 3400
Seattle, WA 98101
(206) 447-4400
CLID NO. 353 et al. Bonds
TABLE OF CONTNENTS
PAGE
Section 1. - Consolidation of Local Improvement Districts...........................................1
Section2. - Bond Fund.................................................................................................. 2
Section 3. - Authorization and Description of Bonds....................................................2
Section 4. - Registration and Transfer of Bonds.............................................................3
Section5. - Payment of Bonds........................................................................................ 5
Section 6. - Redemption Provisions................................................................................6
Section 7 - Notice of Redemption.................................................................................. 6
Section 8. - Failure to Redeem Bonds............................................................................. 7
Section 9. - Pledge of Assessment Payments..................................................................7
10. - Form and Execution of Bonds................................................................... 7
Section11. - Bond Registrar........................................................................................... 8
12. - Preservation of Tax Exemption for Interest on Bonds .............................. 9
13. - Use of Bond Proceeds..............................................................................10
14. - Approval of Bond Purchase Agreement..................................................10
15. - Preliminary Official Statement Deemed Final........................................11
16 - Undertaking to Provide Continuing Disclosure ....................................... 11
17. - Fixing Interest Rate on Assessments.......................................................14
18: - Severability..............................................................................................14
19 - Effective Date of Ordinance....................................................................15
CLID NO. 353 et aG Bonds
ORDINANCE NO. , -7 7--3 /_
AN ORDINANCE of the City Council of the City of Kent,
Washington, relating to local improvement districts; establishing
Consolidated Local Improvement District No. 353 et al., by
consolidating Local Improvement Districts Nos. 353, 355, 356 and
357, and creating Consolidated Local Improvement Fund, District
No. 353 et al.; fixing the amount, form, date, interest rates, maturity,
and denominations of the Consolidated Local Improvement District
No. 353 et al. Bonds; providing for the sale and delivery thereof to
Banc of America Securities LLC of Seattle, Washington; and fixing
the interest rate on local improvement district assessment
installments.
RECITALS
A. The City Council of the City of Kent, Washington (the "City"), heretofore
has created Local Improvement Districts Nos. 353, 355, 356 and 357 (collectively, the
"LIDS") for various purposes.
B. RCW 35.45.160 authorizes the establishment of consolidated local
lent districts for the purpose of issuing bonds only and provides that if the
body of any municipality orders the creation of such consolidated local
lent district, the money received from the installment payment of the
of and interest on assessments levied within the original local improvement
shall be deposited in a consolidated local improvement district bond
tion fund to be used to redeem outstanding consolidated local improvement
bonds.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT,
ASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. - Consolidation of Local Improvement Districts. For the purpose
issuing bonds only, those local improvement districts of the City established by the
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CUD NO. 353 et aJ Bonds
following ordinances, respectively, the 30 -day period for making cash payment of
assessments without interest in each local improvement district having expired in the
lease of the assessments for each local improvement district, are consolidated into a
local improvement district to be known and designated as Consolidated
Improvement District No. 353 et al.:
cal Improvement
Created by
Assessment Balance After
Term
District No.
Ordinance No.
30 -day Prepayment Period
of Roll
353
3619
$10,930,911.11
15 years
355
3653
587,646.00
15 years
356
3657
150,000.00
10 years
357
3662
90,000.00
10 years
SECTION 2. - Bond Fund. There is created and established in the office of the
Lance Director of the City for Consolidated Local Improvement District No. 353 et
a special consolidated local improvement district fund to be known and designated
las Consolidated Local Improvement Fund, District No. 353 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
on 1 received after the end of the respective legal prepayment period for each
ct shall be transferred to and deposited in the Bond Fund, and all collections
ining to assessments on the assessment rolls of those local improvement districts
L hereafter received shall be deposited in the Bond Fund to redeem outstanding
Local Improvement District No. 353 et al. bonds.
SECTION 3. - Authorization and Description of Bonds. Consolidated Local
wement District No. 353 et al. Bonds (the 'Bonds") shall be issued in the total
pal sum of $11,758,557.11, being the total amount on the assessment rolls of the
remaining uncollected after the expiration of the 30 -day interest-free prepayment
Is for assessments on those assessment rolls. The Bonds shall be dated
nber 15, 2004, shall mature on December 15, 2021, and shall be numbered in
manner and with any additional designation (including CUSIP numbers) as the
agent of the State of Washington (as the same may be designated by the State of
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5048142003
CLID NO. 353 et a1. Bonds
Washington from time to time) (the "Bond Registrar") deems necessary for the
purpose of identification, shall be in the denomination of $5,000.00 each or any
integral multiple thereof, except for one Bond within the first annual group on the
Estimated Redemption Schedule assigned CUSIP Number 490761AV5 in the principal
amount of $8,557.11 (or $3,557.11 plus any integral multiple of $5,000.00), and shall
bear interest from their date to the maturity or earlier redemption of the Bonds, payable
annually on December 15 of each year beginning December 15, 2005, at the rates per
mnum shown on the following Estimated Redemption Schedule:
ESTIMATED REDEMPTION SCHEDULE
Estimated
[,edemption Dates CUSIP Interest
(December 15) No. 490761 Amounts Rates
2005
AV5
$798,557.11
2.50%
2006
AW3
795,000.00
2.75
2007
AXl
795,000.00
2.90
2008
AY9
795,000.00
3.10
2009
AZ6
795,000.00
3.40
2010
BAO
795,000.00
3.60
2011
BB8
795,000.00
3.90
2012
BC6
790,000.00
4.00
2013
BD4
785,000.00
4.10
2014
BE2
785,000.00
4.20
2015
BF9
785,000.00
4.30
2016
BG7
765,000.00
4.40
2017
BH5
760,000.00
4.50
2018
BJ1
760,000.00
4.60
2019
BK8
760,000.00
4.65
The Bonds are structured and the interest rates are fixed in anticipation of their
. redemption based on projected assessment payments in Local Improvement
Nos. 353, 355, 356 and 357, respectively, subject to the Maximum Annual
Schedule set forth in Section 6.
SECTION 4. - Registration and Transfer of Bonds. The Bonds shall be issued
in registered form as to both principal and interest and shall be recorded on books
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CLID NO. 353 et al. Bonds
c)r 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 each of the 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, canceling 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
CUSIP number as the transferred Bond but may have a different inventory reference
number or control number. Any exchange or transfer shall be without cost to the
owner or transferee. The Bond Registrar shall not be obligated 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 The Depository Trust Company, New York, New York ("DTC"). The
Bonds so registered shall be held in fully immobilized form by DTC as depository in
accordance with the provisions of a Blanket Issuer Letter of Representations dated
March 16, 1999, between the City and DTC (as it may be amended from time to time,
"Letter of Representations"). Neither the City nor the Bond Registrar shall have
y responsibility or obligation to DTC participants or the persons for whom they act
nominees with respect to the Bonds regarding accuracy of any records maintained
DTC or DTC participants of any amount in respect of principal of or interest on the
nds, or any notice which is permitted or required to be given to registered owners
(except such notice as is required to be given by the Bond Registrar to
For as long as any Bonds are held in fully immobilized form, DTC, its nominee
its successor depository shall be deemed to be the registered owner for all purposes
7eunder and all references to registered owners, bondowners, bondholders or the like
al mean DTC or its nominee and shall not mean the owners of any beneficial
erests in the Bonds. Registered ownership of such Bonds, or any portions thereof,
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50481420 03
CLID NO. 353 et al. Bonds
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.
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
the City determines that the Bonds are to be in certificated form, the ownership of
ids may be transferred to any person as provided herein and the Bonds no longer
11 be held in fully immobilized form.
SECTION S. - Payment of Bonds. Both principal of and interest on the Bonds
ill be payable solely out of the Bond Fund and from the Local Improvement
aranty Fund of the City, and shall be payable in lawful money of the United States
America. Interest on the Bonds shall be paid by checks or drafts mailed to the
;istered owners on the interest payment date at the addresses appearing on the Bond
gister on the last business day of the month preceding the interest payment date.
ncipal of the Bonds shall be payable upon presentation and surrender of the Bonds
the registered owners to the Bond Registrar.
Notwithstanding the foregoing, for as long as the Bonds are registered in the
ne of DTC or its nominee, payment of principal of and interest on the Bonds shall
made in the manner set forth in the Letter of Representations.
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50481420 03
CLID NO. 353 et al. Bonds
SECTION 6. - Redemption Provisions. The City reserves the right to redeem
the Bonds prior to their stated maturity on any interest payment date, in order of the
Estimated Redemption Schedule (as indicated by the respective CUSIP Numbers
assigned to each annual group on the Estimated Redemption Schedule and shown in
Section 4) and shall call Bonds for redemption in order of the Estimated Redemption
Schedule whenever there shall be sufficient money in the Bond Fund to pay the Bonds
so called over and above the amount required for the payment of the interest payable
on that interest payment date on all unpaid Bonds, PROVIDED HOWEVER, that the
principal amount of Bonds called for prior redemption shall not exceed the following
Maximum Annual Retirement Schedule:
Maximum CUSIP Nos.
Principal 490761
$3,183,557.11 AV5 through AY9
5,568,557.11 AV5 through BB8
8,713,557.11 AV5 through BF9
11,758,557.11 AV5 through BK8
Retirement Schedule and
Permitted Call Dates
On any interest payment date
On December 15, 2006, and any
interest payment date thereafter
On December 15, 2008, and any
interest payment date thereafter
On December 15, 2010, and any
interest payment date thereafter
Bonds redeemed under this schedule shall be cancelled.
If fewer than all of the outstanding Bonds of an annual group from the
Estimated Redemption Schedule are to be called for redemption, the selection of
specific Bonds for redemption within that annual group shall be at random, and for as
long as the Bonds are registered in the name of DTC or its nominee, the selection shall
be in accordance with the operational arrangements of DTC, then in effect, as
referenced in the Letter of Representations.
SECTION 7. - Notice of Redemption. The City shall cause notice of any
Iintended redemption of Bonds to be given not less than 15 nor more than 45 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
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CLID NO. 353 et al. Bonds
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 Banc of America Securities LLC at its principal office in Seattle,
Washington, or its successor, and to such other persons and with such additional
as the Finance Director of the City shall determine, but these additional
mailings shall not be a condition precedent to the redemption of Bonds.
Notwithstanding the foregoing, for as long as the Bonds are registered in the
of DTC or its nominee, notice of redemption shall be given in accordance with
Letter of Representations.
SECTION 8. - Failure to Redeem Bonds. If any Bond is not redeemed when
perly presented at its maturity or call date, the City shall be obligated to pay interest
that Bond at the same rate provided in the Bond from and after its maturity or call
e until that Bond, both principal and interest, is paid in full or until sufficient money
its payment in full is on deposit in the Bond Fund and the Bond has been called for
anent by giving notice of that call to the registered owner of each of those unpaid
SECTION 9. - Pledge of Assessment Payments. Assessments collected in
Improvement Districts Nos. 353, 355, 356 and 357, together with interest and
ies, if any, are pledged to the payment of the Bonds which are payable solely out
Bond Fund and the Local Improvement Guaranty Fund of the City in the manner
'ided by law. The Bonds are not general obligations of the City.
SECTION 10. - Form and Execution of Bonds. The Bonds shall be printed,
graphed or typed on good bond paper in a form consistent with the provisions of
ordinance and state law, shall be signed by the Mayor and City Clerk, either or
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50481420 03
CLID NO. 353 et at: Bonds
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,
Consolidated Local Improvement District No. 353 et al. Bonds described
in the Bond Ordinance.
WASHINGTON STATE FISCAL i
Bond
Authorized Signer
The authorized signing of a Certificate of Authentication shall be conclusive
evidence that the Bond so authenticated has been duly executed, authenticated, and
delivered and is entitled to the benefits of this ordinance.
If any officer whose facsimile signature appears on the Bonds ceases to be an
-'er of the City authorized to sign bonds before the Bonds bearing his or her
imile signature are authenticated or delivered by the Bond Registrar or issued by
City, those Bonds nevertheless may be authenticated, issued, and delivered and,
.n authenticated, issued, and delivered, shall be as binding on the City as though
person had continued to be an officer of the City authorized to sign bonds. Any
d also may be signed on behalf of the City by any person who, on the actual date of
ing of the Bond, is an officer of the City authorized to sign bonds, although he or
did not hold the required office on the date of issuance of the Bond.
SECTION]]. - Bond Registrar. The Bond Registrar shall keep, or cause to be
at its principal corporate trust office, sufficient books for the registration and
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CLID NO. 353 et al. Bonds
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
or exchanged in accordance with the provisions of the Bonds and this
jordinance, 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
a system of registration for the City's bonds and obligations.
The Bond Registrar shall be responsible for its representations contained in the
,nd Registrar's Certificate of Authentication on the Bonds. The Bond Registrar may
-1ome the owner of Bonds with the same rights it would have if it were not the Bond
gistrar and, to the extent permitted by law, may act as depository for and permit any
its officers or directors to act as members of, or in any other capacity with respect to,
y committee formed to protect the rights of Bond owners.
SECTION 12. - Preservation of Tax Exemption for Interest on Bonds. The
covenants that it will take all actions necessary to prevent interest on the Bonds
being included in gross income for federal income tax purposes, and it will
er take any action nor make or permit any use of proceeds of the Bonds or other
of the City treated as proceeds of the Bonds at any time during the term of the
Is which will cause interest on the Bonds to be included in gross income for
ederal income tax purposes. The City also covenants that it will, to the extent the
rbitrage rebate requirement of Section 148 of the Internal Revenue Code of 1986, as
upended (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
3onds, including the calculation and payment of any penalties that the City has elected
o pay as an alternative to calculating rebatable arbitrage, and the payment of any other
Lenalties if required under Section 148 of the Code to prevent interest on the Bonds
' om being included in gross income for federal income tax purposes. The City
ertifies that it has not been notified of any listing or proposed listing by the Internal
tevenue Service to the effect that it is a bond issuer whose arbitrage certifications may
Lot be relied upon.
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50481420 03
CUD NO. 353 et aL Bonds
SECTION 13. - Use of Bond Proceeds. The accrued interest on the Bonds
received from the Bond purchaser shall be deposited in the Bond Fund and used to pay
debt service on the Bonds on the first interest payment date. $1,175,855.71, being 10%
c)f the principal amount of the Bonds, will be deposited in the Local Improvement
Guaranty Fund of the City. The remaining principal proceeds of the Bonds shall be
used to finance the costs of the improvements in Local Improvement Districts Nos.
353, 355, 356 and 357, including the repayment of any interim financing for those
improvements, and to pay the 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 respective local improvement
district funds or accounts therein and be spent for the purposes of those funds, and
earnings subject to a federal tax or rebate requirement may be used for those tax or
rebate purposes.
SECTION 14. - Approval of Bond Purchase Agreement. Banc of America
Securities LLC of Seattle, Washington, has presented a purchase agreement (the "Bond
Purchase Agreement") to the City offering to purchase the Bonds under the terms and
conditions provided in the Bond Purchase Agreement, which written Bond Purchase
Agreement is on file with the City Clerk and is incorporated herein by this reference.
The City Council finds that entering into the Bond Purchase Agreement 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
,er in accordance with the Bond Purchase Agreement, with the approving legal
of Foster Pepper & Shefelman PLLC, municipal bond counsel of Seattle,
gton, regarding the Bonds.
The proper City officials are authorized and directed to do everything necessary
the prompt delivery of the Bonds to the purchaser, including without limitation the
cution of the Official Statement on behalf of the City, and for the proper application
use of the proceeds of the sale thereof.
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50481420 03
CLID NO. 353 et ab Bonds
SECTION 15. - Preliminary Oficial Statement Deemed Final. The City
Council has been provided with copies of a preliminary official statement dated
December 3, 2004 (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 16. - Undertaking to Provide Continuing Disclosure. To meet the
requirements of United States Securities and Exchange Commission ("SEC") Rule
150-12(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");
(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
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50481420 03
CLID NO. 353 et at Bonds
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) ape 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 applicable to governmental units, as such principles may
be changed from time to time and as permitted by State law, 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
outstanding balance of obligations secured by the Local
Improvement Guaranty Fund of the City at fiscal year end, and the
balance of cash and investments (based on market value) in the
Local Improvement Guaranty Fund at fiscal year end; (3) the
current assessed valuation of each of LIDS Nos. 353, 355, 356 and
357; and (4) a statement of total assessments collected during the
preceding fiscal year and the amount of delinquent assessments as
of the end of the fiscal year for each of LIDs Nos. 353, 355, 356
and 357;
(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, 2004; and
(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 Undertakins. The Undertaking is subject
to amendment after the primary offering of the Bonds without the consent
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CLID NO. 353 et at Bonds
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 permitted 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 of Undertaking. 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.
(0 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.
(g) Designation of Official Responsible to Administer
Undertaking. The Finance Director of the City (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;
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(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 17. - Fixing Interest Rate on Assessments. The interest rates on the
installments and delinquent payments of the special assessments in Local Improvement
Nos. 353, 355, 356 and 357 are revised and fixed at the rate of 4.75% per
SECTION 18. - Severabdity. If any one or more sections, subsections, or
nces of this ordinance are held to be unconstitutional or invalid, such decision
not affect the validity of the remaining portion of this ordinance and the same
remain in full force and effect.
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CLID NO. 353 et aL Bonds
SECTION 19. - Effective Date of Ordinance. This ordinance shall take effect
and be in force five (5) days from and after its passage and five (5) days following its
publication as required by law.
ATTEST:
14FWI
D • .61 a
BOND COUNSEL FOR THE CITY
PASSED: 14 day of December, 2004.
APPROVED: day of December, 2004.
PUBLISHED: day of December, 2004.
I hereby certify that this is a true copy of Ordinance No.
passed by the City Council of the City of Kent, Washington, and approved by the
Mayor of the City of Kent as hereon indicated.
a BRENDA JACOBE ITY CLERK
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50481420 03
CL1D NO. 333 et al. Bonds