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HomeMy WebLinkAboutOrdinance No. 0915WHERE AS, the City Council {the "Council") of the City of Medina, Washington (the "City"), adopted Ordinance No. 914 on December 1, 2014 authorizing the issuance and sale of the City's Limited Tax General Obligation Bond, 2014 (Taxable) (the "Bond") in the aggregate principal amount of not to exceed $1,350,000 subject to certain conditions and parameters set forth therein; and WHEREAS, the City had received a preliminary offer from U.S: Bank National Association (the "Bank") to purchase the Bond which included a number of optional terms for the Bond, including but not limited to the amortization period and interest rate; and WHEREAS, the final terms of the Bond have now been determined and the Council now desires to amend Ordinance No. 914 to reflect such terms as set forth herein; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MEDINA, WASHINGTON, DO ORDAIN AS FOLLOWS; Section I. Definitions and Interpretation of Terms. Terms not otherwise defined herein, including in the recitals and in Section 2(a) of this ordinance, shall have the meanings set forth in Ordinance No. 914. Section 2. Amendments to Ordinance No. 914. (a) Section I (Definitions and Interpretation of Terms), The following definitions in Section I (a) (Definitions and Interpretation of Terms) of Ordinance No. 914 are hereby amended to read as follows: Interest Rate means the fixed rate of interest of 3.60% per annum, as it may be adjusted pursuant to this ordinance and the Proposal. Reset Date means the initial maturity date for the Bond and each five year anniversary thereafter. (b) Section 3 (Authorization of the Bond). Section 3 (Authorization of the Bond) of Ordinance No. 914 is hereby amended as follows (deletions are strieken, additions are dou le �-b underlined); Section 3. Authorization of the Bond. For the purpose of financing costs of the Project and paying costs of issuance for the Bond, the City hereby authorizes the issuance and sale of its limited tax general obligation bond in the principal amount of net te-exeeed-$1,350,000. The bond shall be designated the "City of Medina, Washington, Limited Tax General Obligation Bond, 2014 (Taxable)," or other such designation as set forth in the Bond and approved by the Finance Director. The Bond shall be dated as of its date of delivery, shall be fully registered as to both principal and interest, shall be in one denomination, and shall mature UMi o = x �iat & five years from its dated date as provided in the Bond; provided, however, principal shall be amortized over a period of 4-4 tre ex-eeed-20 years, as etppfeved 1— +Ie -Mnanee T-,,:---+— and s-+, flb-Ah in the -Bend. The Bond shall bear interest from its dated date or the most recent date to which interest has been paid at the Interest Rate, as the same may be adjusted pursuant to the Proposal and set forth herein. Interest on the principal amount of the Bond shall be calculated per annum on a 30/360 basis, or as otherwise provided in the Bond. Principal of and interest on the Bond shall be payable annually as set forth in the payment schedule attached to the Bond, At the option of the Bank and with the consent of the City Council, the term of the Bond may be extended on each Reset Data ,,eset-DateL for an additional five year term. Under the terms of the Proposal, the Bank is required to provide the City notice of its intent to extend the term of the Bond at least 120 days' prior to each Reset Date, If the Bank offers to extend the term of the Bond, and the City Council determines that it is in the best interest of the City to approve such extension, the City Council shall authorize the extension by the adoption of a new ordinance or an amendatory ordinance establishing the terms and conditions, including any adjustment to the Interest Rate, for such extension. If the Bank has not offered to extend the term of the Bond, or if the City has determined that it is in the best interest of the City to prepay and redeem the Bond as provided in Section 9 hereof, all principal on the Bond, plus accrued interest, shall become due and payable on the Reset Date. (c) Section 9 (Right of Prepayment). Section 9 (Right of Prepayment) of Ordinance No. 914 is hereby amended as follows (deletions are 4fieken, additions are double underlined)' Section 9. Right of Prepayment, The Bond may be prepaid, in whole or in part, on any Bank business y R ..da e�te without prepayment penalty or feeqp n three =_ days prior notice =fro m �the Cit -1q- the Bank. If the Bond is prepaid in accordance with this Section 9, interest shall cease to accrue on the date the Bank receives such prepayment. -2- (d) Section 10 (Sale of the Bon4). Section 10 (Sale of the Bond) of Ordinance No. 914 is hereby replaced in its entirety with the following: Section 10. Sale of the Bond. The City hereby accepts the Bank's Proposal in substantially the form on file with the City and in accordance with the terms contained in this ordinance. The Finance Director and other appropriate City officials are hereby authorized and directed to do everything necessary for the prompt issuance, execution and delivery of the Bond and for the proper application and use of the proceeds thereof. The Finance Director is hereby further authorized to execute any documents and to agree to any other terms, conditions and covenants with the Bank that are in the best interest of the City and in accordance with the Proposal. In the event that there are any conflicts or discrepancies between any such documents and this ordinance, this ordinance shall control. Section 3. Ratification and Confirmation. Except as hereby amended, the remaining terms and conditions of Ordinance No. 914 are hereby ratified and confirmed in all respects. All acts taken pursuant to the authority granted in this ordinance but prior to its effective date are hereby ratified and confirmed. Section 4. Effective Date of Ordinance. This ordinance shall be effective five days after its passage and publication as provided by law, ADOPTED BY THE CITY COUNCIL OF THE CITY OF MEDINA, WASHINGTON, ON THIS 8TH DAY OF DECEMBER, 2014. FAINJIL V Aimee Kellerman, City Clerk as to form: Dearfia Gregory, Bond Pacifica Law Group Ll Ordinance No.: 915 Date of Publication: Effective Date: M 1, the undersigned, the Clerk of the City Council (the "City Council") of the City of Medina, Washington (herein called the "City"), DO HEREBY CERTIFY: 1. That the attached ordinance No. 915 (herein called the "Ordinance") is a true and correct copy of an ordinance of the City, as finally adopted at a special meeting of the City Council held on the 8th day of December, 2014, and duly recorded in my office. 2. That the meeting was duly convened and held in all respects in accordance with law, and to the extent required by law, due and proper notice of such meeting was given; that a quorum of the City Council was present throughout the meeting and a legally sufficient number of members of the City Council voted in the proper manner for the passage of said Ordinance; that all other requirements and proceedings incident to the proper adoption of said Ordinance have been duly fulfilled, carried out and otherwise observed, and that I am authorized to execute this certificate, IN WITNESS WHEREOF, I have hereunto set my hand this 8th day of December, 2014. Aimee Kellerman, City Clerk