HomeMy WebLinkAboutOrdinance No. 0451S
CITY OF MEDINA, WASHINGTON
LIMITED TAX GENERAL OBLIGATION BONDS, 1987
$560,000
ORDINANCE NO. 451
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
MEDINA, WASHINGTON, PROVIDING FOR THE ISSUANCE
AND SALE OF LIMITED TAX GENERAL OBLIGATION
BONDS OF THE CITY IN THE PRINCIPAL SUM OF
$560,000, FOR THE PURPOSES OF PROVIDING FUNDS
TO PAY PART OF THE COSTS OF ACQUISITION,
CONSTRUCTION AND INSTALLATION OF IMPROVEMENTS
TO ITS. CITY HALL, PROVIDING FUNDS TO PAY PART
OF THE COSTS OF MAKING CERTAIN IMPROVEMENTS TO
THE CITY'S SYSTEM OF SEWERAGE, AND PROVIDING
FUNDS TO .REDEEM AND RETIRE THE CITY'S BOND
{ ANTICIPATION NOTES; PROVIDING THE DATE, FORM,
TERMS AND MATURITIES OF SAID BONDS; CREATING A
CONSTRUCTION FUND; PROVIDING FOR THE DISPOSI-
TION OF THE PROCEEDS OF SALE OF SUCH BONDS;
PROVIDING FOR THE ANNUAL LEVY OF TAXES TO PAY
THE PRINCIPAL OF AND INTEREST ON SAID BONDS;
AND PROVIDING FOR THE SALE THEREOF.
PASSED: May 11, 1987
Prepared By:
PRESTON, THORGRIMSON, ELLIS & HOLMAN
SEATTLE, WASHINGTON
L,
V
CITY OF MEDINA, WASHINGTON
ORDINANCE NO. 451
TABLE OF CONTENTS*
Page
Recitals...................................................
1
Section
1.
Definitions ...................................
2
Section
2.
Findings and Authorization of Project .........
5
Section
3.
Authorization of Bonds ........................
6
Section
4.
Prior Redemption ..............................
8
Section
5.
Creation of Bond Fund and Provision for Tax
LevyPayments .................................
12
Section
6.
Defeasance....................................
13
Section
7.
Bonds to Remain Tax Exempt; Nonarbitrage ......
13
Section
8.
Additional Tax Provisions and Consents ........
15
Section
9.
Lost or Destroyed Bonds .......................
16
Section
10.
Form of the Bonds .............................
16
Section
11.
Execution of the Bonds ........................
21
Section
12.
Bond Registrar ................................
22
Section
13.
Creation of Construction Fund and
Application of Proceeds of Bonds ..............
22
Section
14.
Sale of the Bonds and Approval of
Official Statement ............................
24
Section
15.
Temporary Bonds ...............................
24
Section
16.
Outstanding Debt and Assessed Valuation .......
25
Section
17.
Severability..................................
26
Section
18.
Effective Date ................................
26
*Neither this Table of Contents nor the preceding cover page
is a part of this ordinance.
ORDINANCE NO. 451
AN ORDINANCE of the City Council of the City of
Medina, Washington, providing for the issuance
and sale of limited tax general obligation
bonds of the City in the principal sum of
$560,000, for the purposes of providing funds
to pay part of the costs of acquisition,
construction and installation of improvements
to its city hall, providing funds to pay part
of the costs of making certain improvements to
the City's system of sewerage and providing
funds to redeem and retire the City's bond
anticipation notes; providing the date,. form,
terms and maturities of said bonds; creating a
construction fund; providing for the disposi-
tion of the proceeds of sale of such bonds;
providing for the annual levy of taxes to pay
the principal of and interest on said bonds;
and providing for the sale thereof.
WHEREAS, the City Council of the City of Medina, Washington
(the "City") finds the acquisition, construction and installation
of certain improvements to its city hall to be necessary for the
public welfare and in the best interest of the residents of the
City; and
WHEREAS, by Ordinance No. 411 (the "1985 Note Ordinance")
passed on August 12, 1985, the City Council adopted a plan of
additions and alterations to its plan and system of sewerage,
authorized the issuance and sale of the limited tax general
.obligation bonds of the City, and authorized the issuance of sale
of the Limited Tax General Obligations Bond Anticipation Notes,
1985 of the City in the aggregate principal amount of $102,000
(the "1985 Notes"); and
WHEREAS, by Ordinance No. 430, passed May 12, 1986, the City
adopted a second plan of additions and alterations to its system
of sewerage, authorized the issuance of additional limited tax
general obligation bonds of the City and authorized the issuance
and sale of its Limited Tax General Obligation Bond Anticipation
Notes, 1986 (the "1986 Notes") in the aggregate principal amount
of $146,000;
WHEREAS, it is deemed necessary and advisable by the City
Council that the City additionally add to and alter its system of
sewerage; and
WHEREAS, such additions and alterations to the system of
sewerage will not expand .the previous service capacity of the
system of sewerage by fifty percent or more; and
WHEREAS, the City has analyzed and considered the environ-
mental impacts of these additions and alterations to its system of
sewerage; and
WHEREAS, in order to provide funds to pay part of the cost
and expense of such acquisition, construction and installation of
improvements to its city hall; to pay part of the cost and expense
of such additions and alterations to its system of sewerage; and
in order to provide funds to pay and redeem the 1986 Notes, the
City also finds it necessary for the public welfare and in the
best interest of the residents of the City to issue its limited
tax general obligation bonds in the aggregate principal amount of
$560,000 (the "Bonds"); and
WHEREAS, the City has received the offer of Peoples National
Bank of Washington to purchase the Bonds; and
WHEREAS,. the Council has reviewed said offer and finds it
acceptable,
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
MEDINA, WASHINGTON, as follows:
Section 1. Definitions. As used in this ordinance, the
following words shall have the following meanings, unless a
different meaning clearly appears from the context.
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"Bond Counsel" means Preston, Thorgrimson, Ellis & Holman or
any other firm of nationally recognized bond counsel selected by
the City.
I
"Bond Redemption Fund" means the "City of Medina Limited Tax
General Obligation Bond Redemption Fund," created by Section 8 of
the 1985 Note Ordinance and renamed pursuant to Section 5 of this
Ordinance.
"Bond Register" means the books or records maintained by the
Bond Registrar containing the name and mailing address of the
owner of each Bond or nominee of such owner and the principal
amount and number of Bonds held by each owner or nominee.
"Bond Registrar" means the fiscal agencies of the State of
Washington, currently Seattle -First National Bank, Seattle,
Washington, and I. B. J. Schroder Bank & Trust Company, New York,
New York, or any fiscal agent of the State of Washington that may
hereafter be designated as successor to such banks.
"Bonds" means the $560,000 principal amount of City of
Medina, Washington, Limited Tax General Obligation Bonds, 1987,
issued pursuant to this ordinance for the purpose of paying the
costs of the Project authorized by Section 2 hereof.
"Bond Year" means the one-year period beginning on the date
of issue of the Bonds and ending one-year later and each
subsequent one-year period.
"City" means the City of Medina, Washington, a municipal
corporation duly organized and existing under and by virtue of the
Constitution and laws of the State of Washington.
"Code" means the federal Internal Revenue Code of 1986.
"Construction Fund" means the City of Medina Limited Tax
General Obligation Bonds, 1987 Construction Fund, authorized to be
created by Section 13 of this ordinance.
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�a
"Council" means the City Council, as general legislative
authority of the City as the same shall be duly and regularly
constituted from time to time..
i
"Net Proceeds" when used with reference to the Bonds, means
the face amount of the Bonds, plus accrued interest if any, and
less original issue discount.
"1986 Note Account" means the 1986 Note Redemption Account
created in the Bond Redemption Fund created by Section 7 of the
1986 Note Ordinance.
"1985 Note Ordinance" means Ordinance No. 411 of the City
passed by the City Council on August 12, 1985.
"1986 Note Ordinance" means Ordinance No. 430 of the City
passed by the City Council on May 12, 1986.
"Private Person" means any natural person engaged in a trade
or business or any trust, estate, partnership, association,
company or corporation.
"Private Person Use" means the use of property in a trade or
business by a private person if such use is other than as a member
of the general public. Private Person Use includes ownership of
the property by the private person as well as other arrangements
that transfer to the private person the actual or beneficial use
of the property (such as a lease, management or incentive payment
contract or other special arrangement) in such a manner as to set
the private person apart from the general public. Use of property
as a member of the general public includes attendance by the
private person at municipal meetings or business rental of
property to the private person on a day-to-day basis if the rental
paid by such private person is the same as the rental paid by any
private person who desires to rent the property. Use of property
by nonprofit community groups or community recreational groups is
not treated as Private Person Use if such use is incidental to the
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governmental uses of property, the property is made available .for
such use by all such community groups on an equal basis and such
community groups are charged only a de minimus fee to cover
custodial expenses.
"Project" means the acquisition, construction and installa-
tion of capital improvements to certain existing and new City
facilities, as authorized by Section 2 of this ordinance.
"Treasurer" means the Clerk -Treasurer of the City duly
appointed by the Mayor, or any successor to the functions of such
Treasurer.
Section 2. Findings and Authorization of Project.
(a) City Hall. It is hereby found and declared that
the public interest and benefit of the inhabitants of the City
require that the City remodel, renovate and improve its city hall
.by finishing the basement to accommodate the Police Department,
relocating the main floor rest rooms, expanding the City Council
chambers and generally finishing the second floor of the building.
(b) System of Sewerage. The City hereby specifies and
adopts, and authorizes and orders to be carried out, the following
plan of additions to and alterations of its system of sewerage:
(i) Drain and dredge the Medina Park pond and
otherwise improve the storm water detention capacity of the pond;
(ii) Install approximately 300 feet of new 18 inch
storm drain line pipe from 80th Avenue Northeast to Lake
Washington;
(iii) Install approximately 270 feet of new 15 inch
storm drain line pipe from 80th Avenue Northeast- to Medina Park
Ponds; and
(iv) Install approximately 200 feet of new 12 inch
storm drain line pipe from Overlake Drive to Lake Washington.
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The estimated cost of the city hall component of the Project is
$201,909. The estimated cost of the sewerage component of the
Project is $183,961. The foregoing components are herein referred
to as the "Project." The estimated cost of the Project and of all
costs incidental thereto and together with the funds required to
pay and redeem the Note and all costs incidental to the issuance
of the Bonds is hereby declared to be as nearly as practicable the
sum of $560,000, which shall be provided from the proceeds of sale
of the Bonds.
The Council shall approve plans and specifications for the
Project and proceed with the acquisition, construction and instal-
lation of the Project in such stages and at such times as shall
hereafter be determined by the Council. If the Council shall
determine that it has become impractical to undertake any part or
all of the planning, development, acquisition, construction or
equipping of the Project by reason of changed conditions, insuffi-
cient funding or increased costs, the Council may make such
changes in the size, scope or details of the Project as it shall
deem reasonable.
Section 3. Authorization of Bonds. The City hereby author-
izes the issuance and sale of the Bonds in the aggregate principal
amount of $560,000 to provide the funds necessary to pay the cost
of the Project and all costs incidental thereto to provide funds
to pay and redeem the Note and to pay the costs of issuance of the
Bonds. The Bonds shall be general obligations of the City; shall
be designated "City of Medina, Washington, Limited Tax General
Obligation Bonds, 1987," shall be dated as of June 1, 1987; shall
be issued in fully registered form in the denomination of $5,000
or any integral multiple thereof, provided that no Bond shall
represent more than one maturity, shall be numbered separately and
in the manner and with any additional designation as. the Bond
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;a.
Registrar deems necessary for purposes of identification; shall
bear interest from their date, until the Bonds have been paid or
their payment duly provided for, at the rates set forth in the
schedule set forth below, payable on June 1, 1988, and semi-
annually thereafter on the first day of each June and December;
and shall mature on December 1 of each year as follows:
Principal
Interest
Maturity Year
.Amount
Rate
1988
$25,000
5.00%
1989
25,000
5.30
1990
25,000
5.60
1991
30,000
5.75
1992
30,000
6.00
1993
30,000
6.25
1994
35,000
6.50
1995
35,000
6.70
1996
35,000
6.90
1997
40,000
7.00
1998
45,000
7.10
1999
45,000
7.20
2000
50,000
7.30
2001
55,000
7.40
2002
55,000
7.50
The City hereby specifies and adopts the system of registra-
tion for the Bonds approved by the State Finance Committee, and
the fiscal agencies of the State of Washington in the. cities of
Seattle, Washington, and New York, New York, shall act as authen-
ticating trustee, transfer agent, paying agent and registrar for
the Bonds (collectively, the "Bond Registrar"). Both principal of
and interest on the Bonds shall be payable in lawful money of the
United States of America. Interest on the Bonds shall be paid by
check or draft of the Bond Registrar mailed (on the date such
interest is due) to the registered owners or nominees at the
addresses appearing on the Bond Register as of the fifteenth
(15th) day of the month prior to the interest payment date.
Principal of the Bonds shall be payable upon presentation and
surrender of the Bonds to the Bond Registrar by the registered
owners or nominees at the principal offices of either of the
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fiscal agencies of the Stpkte of Washington in the cities of
Seattle, Washington, or New York, New York.
The Bonds may be transferred only on the Bond Register
maintained by the Bond Registrar for that purpose upon the sur-
render thereof by the registered owner or nominee or his duly
authorized agent and only if endorsed in the manner provided
.r.. thereon, and thereupon a new fully registered Bond of like prin-
cipal amount, maturity and interest rate shall be issued to the
transferee in exchange therefor. Such transfer shall be without
cost to the registered owner or transferee. The City and Bond
Registrar may deem the person in whose name each Bond is regis-
tered to be the absolute owner thereof for the purpose of receiv-
ing payment of the principal of and interest on such Bonds and for
any and all other purposes whatsoever.
Upon surrender thereof to the Bond Registrar, the Bonds are
interchangeable for Bonds in any authorized denomination of an
equal aggregate principal amount and of the same interest rates
and maturities.
The Bond Registrar shall not be required to issue, register,
transfer or exchange any of the Bonds during a period beginning at
the opening of business on the fifteenth (15th) day of the month
next preceding any interest payment date and ending at the close
of business on the interest payment date, or, in the case of any
proposed redemption of the Bonds, after the mailing of notice of
the call of such Bonds for redemption.
Section 4. Prior Redemption. The Bonds maturing in or
before the year 1997 are not callable for redemption prior to
their scheduled maturity. The City reserves the right to redeem
the Bonds maturing on and after December 1, 1998, in whole or in
. part, in inverse order of maturity (and by lot within a maturity)
in such manner as the Bond Registrar in his discretion shall
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determine, on December 1, 1997, and on any interest payment date
thereafter, at a price of 100% of the principal amount thereof
plus accrued interest thereon to the redemption date. If the City
redeems at any one time fewer than all of the Bonds having the
same maturity date, the particular Bonds or portions of Bonds of
such maturity to be redeemed shall be selected by lot in incre-
ments of $5,000. In the case of a Bond of a denomination greater
than $5,000, the City shall treat each Bond as representing such
number of separate Bonds each of the denomination of $5,000 as is
obtained by dividing the actual principal amount of such Bond by
$5,000. In the event that only a portion of the principal sum of
a Bond is redeemed, upon surrender of the Bond at the principal
office of the Bond Registrar there shall be issued to the regis-
tered owner, without charge therefor, for the then unredeemed
balance of the principal sum thereof, at the option of the owner,
a Bond or Bonds of like maturity and interest rate in any of the
denominations herein authorized.
Unless waived by the registered owner of Bonds to be redeemed
or the nominee thereof, official notice of any such redemption
shall be given by the Bond Registrar on behalf of the county by
mailing a copy of an official redemption notice by registered or
certified mail at least 30 days and not more than 60 days prior to
the date fixed for redemption to the registered owner of the Bond
or Bonds to be redeemed at the address shown on the Bond Register
or at such other address as is furnished in writing by such
registered owner to the Bond Registrar.
All official notices of redemption shall be dated and shall
state:
(a) the redemption date;
(b) the redemption price;
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(c) if less than all outstanding Bonds are to be
redeemed, the identification (and, in the case of partial
redemption, the respective principal amounts) of the Bonds to be
redeemed;
(d) that on the redemption date the redemption price
will become due and payable upon each such Bond or portion thereof
called for redemption, and that interest thereon shall cease to
accrue from and after said date; and
(a) the place where such Bonds are to be surrendered
for payment of the redemption price, which place of payment shall
be the principal offices of the Bond Registrar.
Prior to any redemption date, the county shall deposit with
the Bond Registrar an amount of money sufficient to pay the
redemption price of all the Bonds or portions of Bonds which are
to be redeemed on that date.
Official notice of redemption having been given as aforesaid,
the Bonds or portions of Bonds so to be redeemed shall, on the
redemption date, become due and payable at the redemption price
therein specified, and from and after such date (unless the county
shall default in the payment of the redemption price upon
presentation) such Bonds or portions of Bonds shall cease to bear
interest. Upon surrender of such Bonds for redemption in
accordance with said notice, such Bonds shall be paid by the Bond
Registrar at the redemption price. Installments of interest due
on or prior to the redemption date shall be payable as herein
provided for payment of interest. Upon surrender for any partial
redemption of any Bond, there shall be prepared for the registered
owner a new Bond or Bonds of the same maturity in the amount of
the unpaid principal. All Bonds which have been redeemed shall be
cancelled and destroyed by the Bond Registrar and shall not be
reissued.
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In addition to the foregoing notice, further notice shall be
given by the Bond Registrar as set out below, but no defect in
said further notice nor any failure to give all or any portion of
such further notice shall in any manner defeat the effectiveness
of a call for redemption if notice thereof is given as above
prescribed.
(1) Each further notice of redemption given
hereunder shall contain the information required above for an
official notice of redemption plus: (i) the CUSIP numbers of
all Bonds being redeemed; (ii) the date of issue of the Bonds
as originally issued; (iii) the rate of interest borne by
each Bond being redeemed; (iv) the maturity date of each Bond
being redeemed; and (v) any other descriptive information
needed to identify accurately the Bonds being redeemed.
(2) Each further notice of redemption shall be
sent at least 35 days before the redemption date by
registered or certified mail or overnight delivery service to
all registered securities depositories then in the business
of holding substantial amounts of obligations of types
comprising the Bonds (such depositories now being Depository
Trust Company of New York, New York, Midwest Securities Trust
Company of Chicago, Illinois, Pacific Securities Depository
Trust Company of San Francisco, California, and Philadelphia
Depository Trust Company of Philadelphia, Pennsylvania).
(3) Upon the payment of the redemption price of
Bonds being redeemed, each check or other transfer of funds
issued for such purpose shall bear the CUSIP number
identifying, by issue and maturity, the Bonds being redeemed
with the proceeds of such check or other transfer.
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Interest on the Bonds so called for redemption shall cease on
such redemption date unless the same shall not be redeemed upon
presentation made pursuant to such call.
The City hereby further reserves its right to purchase any
Bonds on the open market at any time.
Section S. Creation of Bond Fund and Provision for Tax Levy
Payments. A special fund of the City known as the Sewer Bond
Redemption has heretofore been created in the office of the
Treasurer. The City hereby renames such special fund, "City of
Medina Limited Tax General Obligation Bond Redemption Fund, 1987"
(the "Bond Redemption Fund"). The Bond Redemption Fund shall be
drawn upon for the sole purpose of paying the principal of and
interest on the. Bonds.
The City hereby further irrevocably covenants and agrees for
as long as any of the Bonds are outstanding and unpaid, that each
year it will include in its budget and levy an ad valorem tax,
within and as a part of the tax levy permitted to cities without a
vote of the people, upon all the property within the City subject
to taxation, together with all other moneys of the City which may
legally be used and which the City may apply for such purposes,
sufficient to pay the principal of and interest on the Bonds as
the same shall become due. None of the moneys in the Bond Redemp-
tion Fund shall be used for any other purpose than the payment of
the principal of and interest on the Bonds. Moneys in the Bond
Redemption Fund not needed to pay the interest or principal next
coming due may temporarily be deposited in such institutions or
invested in such manner as may be lawful for the investment of
City moneys. Any interests or profit from the investment of such
moneys shall be deposited in the Bond Redemption Fund.
The full faith, credit and resources of the City are hereby
irrevocably pledged for the annual levy and collection of said
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taxes and for the prompt payment of the principal of and interest
on the Bonds as the same shall become due.
Section 6. Defeasance. In the event that money and/or
"Government Obligations," as such Obligations are now or may
hereafter be defined in Ch. 39.53 RCW (provided that such obliga-
tions are direct obligations of or guaranteed by the United States
Government or an agency or instrumentality thereof), maturing at
such time or times and bearing interest to be earned thereon in
amounts sufficient to redeem and retire the Bonds in accordance
with their terms, are set aside in a special account to effect
such redemption or retirement and such money and the principal of
and interest on such obligations are irrevocably set aside and
pledged for such purpose, then no further payments need be made
into the Bond Redemption Fund for the payment of the principal of
and interest on the Bonds so provided for and such Bonds shall
cease to be entitled to any lien, benefit or security of this
ordinance except the right to receive the funds so set aside and
pledged, and such Bonds shall be deemed not to be outstanding
hereunder.
Section 7. Bonds to Remain Tax Exempt; Nonarbitrage. The
City hereby covenants that it will not make any use of the pro-
ceeds from the sale of the Bonds (or any other moneys or obliga-
tions of the City which may be deemed to be proceeds of such Bonds
pursuant to Section 148(a) of the Code and the applicable
regulations thereunder) which, if such use has been reasonably
expected on the date of delivery of the Bonds to the initial
purchasers thereof, would have caused the Bonds to be "arbitrage
. bonds" within the meaning of said Section and said regulations.
The City will comply with the applicable requirements of Section
148(a) of the Code of and the applicable regulations thereunder
throughout the term of the Bonds. The City covenants that it will
--13- JG375 87/05/08
not act or fail to act in a manner which will cause the Bonds to
be considered obligations not described in Section 103 of the
Code.
The City will take no actions and will make no use of the
proceeds of the Bonds or any future bonds issued on a parity
herewith, or any other funds held under this Ordinance which would
cause any Bond to be treated as a "private activity bond" (as
defined in Section 141(b) of the Code) subject to treatment under
said Section 141(b) as an obligation not described in subsection
(a) of said Section 103, unless the tax exemption thereof is not
affected. The Council hereby finds and declares, with respect to
Section 148(f)(4)(C) of the Code, that (i) ninety-five percent or
more of the net proceeds of the Bonds will be used for local
governmental activities of the City and (ii) the aggregate -face
amount of all tax-exempt bonds issued by the City (and all
subordinate entities thereof) during the calendar year of 1987 is
not reasonably expected to exceed $5,000,000.
Section 8. Additional Tax Provisions and Covenants.
A. Bonds Designated "Qualified Tax -Exempt Obligations."
The Bonds are hereby designated as "qualified tax-exempt
obligations" as defined in Section 265(b) of the Code.
B. Private Person Use Limitation. The City covenants
that so long as the Bonds are outstanding, it will not permit:
(a) More than 10% of the Net Proceeds of the Bonds
to be used for any Private Person Use; and
(b) More than 10% of the principal or interest
payments on the Bonds in a Bond Year to be (under the terms
of this Ordinance or any underlying arrangement) directly or
indirectly: (i) secured by any interest in property used or
to be used. for any Private Person Use or secured by payments
in respect of property used or to be used for any Private
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Person Use, or (ii) derived from payments (whether or not
made to the City) in respect of property, or borrowed money,
used or to be used for any Private Person Use.
The City further covenants that, if:
(c) More than 5% of the Net Proceeds of the Bonds
are to be used for any Private Person Use; and
(d) More than 5% of the principal or interest
payments on the Bonds in a Bond Year are (under the terms of
this Ordinance or any underlying arrangement) directly or
indirectly: (i) secured by any interest in property used or
to be used for any Private Person Use or secured by payments
in respect of property used or to be used for any Private
Person Use, or (ii) derived from payments (whether or not
made to the City) in respect of property, or borrowed money,
used or to be used for any Private Person Use.
then, (i) any Private Person Use of the Project described in
subsection (c) hereof or Private Person Use payments described in
subsection (d) hereof that is in excess of the 5% limitations
described in such subsections (c) or (d) will be for a Private
Person Use that is related to the state or local governmental use
of the Project, and (ii) any Private Person Use will not exceed
the amount of Net Proceeds of the Bonds used for the state or
local governmental use portion of the Project to which the Private
Person Use of such portion of the Project relates. The City
further covenants that it will comply with any limitations on the
use of the Project by other than state and local governmental
users that are necessary, in the opinion of Bond Counsel, to
preserve the tax exemption of the interest on the Bonds.
C. Private Loan Limitation.
so long as the Bonds are outstanding,
proceeds in excess of the lesser of:
-15-
The City covenants that
it will not permit Bond
JG375 87/OS/08
(a) 5% of the Net Proceeds of the Bonds, or
(b) $5,000,000
of proceeds of the Bonds, to be used (directly or indirectly) to
make loans (other than loans that enable a borrower to finance a
governmental tax or assessment of general application for a
specific essential governmental function) to a Private Person.
D. Federal Guaranty Prohibition. The City covenants
that so long as the Bonds are outstanding, it will not take any
action or permit or suffer any action to be taken if the result
thereof would be to cause the Bonds to the "federally guaranteed"
within the meaning of Section 149(b) of the Code and any
Regulations promulgated thereunder.
Section 9. Lost or Destroyed Bonds. Ins case the Bonds or
any of them shall be lost, stolen or destroyed, the Bond Registrar
may execute and deliver a new Bond or Bonds of like amount, date,
and tenor to the registered owner thereof upon the owner's paying
the expenses and charges of the City and the Bond Registrar in
connection therewith and upon his filing with the City and the
Bond Registrar evidence satisfactory to said City and Bond Regis-
trar that such Bond or Bonds were actually lost, stolen or
destroyed and of his/her ownership thereof, and upon furnishing
the City and Bond Registrar with indemnity satisfactory to the
City and Bond Registrar.
Section 10. Form of the Bonds. The Bonds shall be in sub-
stantially the following form:
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UNITED STATES OF AMERICA
NO. S
STATE OF WASHINGTON
CITY OF MEDINA
LIMITED TAX GENERAL OBLIGATION BOND, 1987
INTEREST RATE: MATURITY DATE:
SEE REVERSE SIDE FOR CERTAIN DEFINITIONS
REGISTERED OWNER:
PRINCIPAL AMOUNT: DOLLARS
The City of Medina, Washington, a municipal corporation
organized and existing under and by virtue of the laws and Con-
stitution of the State of Washington (the "City"), hereby acknowl-
edges itself to owe and for value received promises to pay to the
Registered Owner identified above, or registered assigns, on the
Maturity Date identified above, the Principal Amount specified
above, unless redeemed prior thereto as provided herein, together
with interest on such Principal Amount from the date hereof or the
most recent date to which interest has been paid or duly provided
for at the Interest Rate set forth above payable June 1, 1988, and
semiannually thereafter on each June 1 and December 1 until
payment of the principal sum has been made or duly provided for.
Both principal of and interest on this bond are payable in lawful
money of the United States of America. Interest on this bond is
payable by check or draft of the Bond Registrar mailed (on the
date such interest is due) to the Registered Owner hereof at the
address appearing on the records maintained by the Bond Registrar
as of the 15th day of the month prior to the interest payment
date. Principal shall be paid to the registered owner hereof upon
presentation and surrender of this bond at the principal offices
of either of the fiscal agencies of the State of Washington in
Seattle, Washington or New York, New York (collectively, the "Bond
Registrar").
Reference is hereby made to additional provisions of this
bond set forth on the reverse side hereof and such additional
provisions shall for all purposes have the same effect as if set
forth in this space. Reference also is made to the Bond Ordinance
(defined on the reverse side hereof) as more fully describing the
covenants with and the rights of registered owners of the bonds or
registered assigns and the meanings of capitalized terms appearing
on the bonds which are defined in such Bond Ordinance.
This bond shall not be valid or become obligatory for any
purpose or be entitled to any security or benefit under the Bond
Ordinance (defined on the reverse side hereof) until the Certifi-
cate of Authentication hereon shall have been manually signed by
the Bond Registrar.
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The City hereby irrevocably covenants and agrees with the
owner of this bond that it will include in its annual budget and
levy taxes annually within and as a part of the tax levy permitted
to cities without a vote of the people, together with all other
money* legally available therefor, to pay the principal of and
interest on this bond as the same shall become due. The full
faith, credit and resources of the City are hereby irrevocably
pledged for the annual levy and collection of such taxes and the
prompt payment of such principal and interest.
It is hereby certified and declared that this bond is issued
pursuant to and in strict compliance with the Constitution and
laws of the State of Washington and ordinances of .the City, that
all acts, conditions and things required to be done precedent to
and in the issuance of this bond and the bonds of this issue have
happened, been done and performed and that this bond and the bonds
of this issue do not. exceed any Constitutional or statutory
limitations.
IN WITNESS WHEREOF, the City of Medina, Washington, has
caused this bond to be signed on behalf of the City with the
manual or facsimile signature of the Mayor, to be attested by the
manual or facsimile signature of the Clerk of the City, and a
facsimile of the seal of the City to be reproduced or impressed
hereon, as of this first day of June, 1987.
ATTEST:
/a/facsimile
Clerk
CITY OF MEDINA, WASHINGTON
By /s/facsimile
Mayor
CERTIFICATE OF AUTHENTICATION
Date of Authentication:
This bond is one of the bonds described in the within -
referenced Ordinance No. of the City of Medina, Washington,
and is one of the Limited Tax General Obligation Bonds, 1987,
dated June 1, 1987, of such City.
WASHINGTON STATE FISCAL AGENCY
As Bond Registrar
By
Authorized Officer
ADDITIONAL BOND PROVISIONS
This bond is one of an issue
tion bonds of the City of like
number, interest rate and date
principal amount of $560,000,
No. of the City, passed May
of limited tax general oblige -
date and tenor, except as to
of maturity, in the aggregate
issued pursuant to Ordinance
11, 1987 (the "Bond Ordinance"),
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to provide funds for the payment of the costs of acquisition,
construction and installation of improvements to the City's city
hall and of certain improvements to the City's system of sewerage
and in order to provide funds to pay and redeem the City's Limited
Tax General Obligations Bond Anticipation Notes, 1986.
The bonds maturing prior to December 1, 1998 are not callable
for redemption prior to their scheduled maturity. The City may
redeem the bonds maturing on or after December 1, 1998 are subject
to redemption in whole or in part on any interest payment date on
or after December 1, 1997 in inverse order of maturity and by lot
within a maturity, in such manner as the Bond Registrar shall
determine at a price of 100% of the principal amount thereof plus
accrued interest to the date of redemption.
If the City redeems at any one time less than all of the
Bonds having the same maturity date, the particular Bonds or
portions of Bonds of such maturity to be redeemed shall be
selected by lot in increments of $5,000. In the case of a Bond of
a denomination greater than $5,000, the City shall treat each such
Bond as representing such number of separate Bonds each of the
denomination of $5,000 as is obtained by dividing the actual
principal amount of such Bond by $5,000. In the event that only a
portion of the principal sum of a Bond is redeemed, upon surrender
of the Bond at the principal office of the Bond Registrar, there
shall be issued to the registered owner, a bond or bonds of like
maturity and interest rate in any of the denominations herein
authorized.
Notice of any such intended redemption shall be given not
less than thirty (30) nor more than sixty (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. The requirements of the Bond
Ordinance shall be deemed to be complied with when notice is
mailed as herein provided, regardless of whether or not it is
actually received by the owner of any bond.
Interest on any bond so called for redemption shall cease to
accrue on the date fixed for redemption unless such bond or bonds
so called are not redeemed upon presentation made pursuant to such
call.
Portions of the principal sum of this bond in installments of
$5,000 or any integral multiple thereof may also be redeemed at
the times set forth above, and if less than all of the principal
sum hereof is to be redeemed, upon the surrender of this bond at
the principal office of the Bond Registrar there shall be issued
to the registered owner, without charge therefor, for the then
unredeemed balance of the principal sum hereof, at the option of
the owner, a bond or bonds of like maturity and interest rate in
any of the denominations authorized by the Bond Ordinance.
The pledge of tax levies for payment of principal of and
interest on the bonds may be discharged prior to maturity of the
bonds by making provision for the payment thereof on the terms and
conditions set forth in the Bond Ordinance.
The bonds of this issue are issued in fully registered form
in the denomination of $5,000 each orany integral multiple
thereof provided that no bond shall represent more than one
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maturity. Upon surrender to the Bond Registrar, bonds are inter-
changeable for bonds in any authorized denomination of an equal
aggregate principal amount and of the same interest rate and
maturity. This bond is transferable only on the records main-
tained by the Bond Registrar for that purpose upon the surrender
of this bond by the registered owner hereof or his/her duly
authorized agent and only if endorsed in the manner provided
hereon, and thereupon a new fully registered bond of like prin-
cipal amount, maturity and interest rate shall be issued to the
transferee in exchange therefor. Such exchange or transfer shall
be without cost to the registered owner or transferee. The City
and Bond Registrar may deem the person in whose name this bond is
registered to be the absolute owner hereof for the purpose of
receiving payment of the principal of and interest on the bond and
for any and all other purposes whatsoever.
The Bond Registrar is not required to issue, register,
transfer or exchange any of the bonds during a period beginning at
= the opening of business on the fifteenth (15th) day of the month
next preceding any interest payment date and ending at the close
of business on the interest payment date, or, in the case of any
proposed redemption of the bonds, after the mailing of notice of
the call of such bonds for redemption.
The following abbreviations, when used in the inscription on
the face of the within bond, shall be construed as though they
were written out in full according to applicable laws or
regulations.
TEN COM - as tenants in common
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with
right of survivorship and not as tenants in common
UNIF GIFT MIN ACT - Custodian
(Gust) (Minor)
under Uniform Gifts to Minors
Act
(State)
Additional abbreviations may also be used although not listed
above.
f:F�9[d�1u1�1:MY
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers -unto
PLEASE INSERT SOCIAL SECURITY OR TAXPAYER IDENTIFICATION NUMBER OF
TRANSFEREE
(Please print or typewrite name and address, including zip code of
Transferee)
the within bond and all rights thereunder and does hereby irrevo-
cably constitute and appoint of
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or its successor, as Agent to
transfer said bond on the books kept by the Bond Registrar for
registration thereof, with full power of substitution in the
premises.
DATED: 19
SIGNATURE GUARANTEED:
NOTE: The signature of this Assign-
ment must correspond with the name
of the registered owner asit
appears upon the face of the within
bond inevery particular, without
alteration or enlargement or. any
change whatever. -
Section 11. Execution of the Bonds. The Bonds shall be
signed on behalf of the City by the manual or facsimile signature
of the Mayor, shall be attested by the manual or facsimile signa-
ture of the Clerk, and shall have the official corporate seal of
the City impressed or imprinted thereon.
Only such Bonds as shall bear thereon a Certificate of
Authentication in the form hereinbefore recited, manually executed
by the Bond Registrar, shall be valid or obligatory for any
purpose or entitled to the benefits of this ordinance. Such
Certificate of Authentication shall be conclusive evidence that
the Bonds so authenticated have been duly executed, authenticated
and delivered hereunder and are entitled to the benefits of this
ordinance.
In case either of the officers of the City 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 authenticated
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
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binding upon the City as though those who signed the same had
continued to be such officers of the City. Any Bond may also be
signed and attested on behalf of the City by such persons as at
the actual date of execution of such Bond shall be the proper
officers of the City although at the original date of such Bond
any such person shall not have been such officer.
Section 12. Bond Registrar. The Bond Registrar shall keep,
or cause to be kept, at its principal corporate trust office,
sufficient records 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 authenti-
cate and deliver Bonds transferred or exchanged in accordance with
the provisions of such Bonds and this ordinance and to carry out
all of the Bond Registrar's powers and duties under this
ordinance.
The Bond Registrar shall be responsible for its representa-
tions contained in the 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 depositary for and permit any
of its officers or directors to act as a member of, or in any
other capacity with respect to, any committee formed to protect
the rights of registered owners of the Bonds.
Section 13. Creation of Construction Fund and Application
of Proceeds of Bonds. There is hereby established a special fund
of the City known as the "City of Medina Limited Tax General
Obligation Bonds, 1987 Construction Fund" (the "Construction
Fund"). At the time of delivery of the Bonds, the proceeds of the
Bonds (with the exception of accrued interest to the date of
delivery which accrued interest shall be deposited in the Bond
Fund) and any other moneys that the City may now have on hand or
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may later receive that are to be used for the purpose of paying
part of the costs of the Project, or of paying and redeeming the
Note shall be paid as follows:
(a) Into the 1986 Note Account, the City shall pay
$154,030 to be used to pay and redeem the 1986 Notes, including
accrued interest thereon; and
(b) Into the Construction Fund, the City shall deposit
the balance of the bond proceeds to be used for the purpose of
paying the costs of the Project authorized in Section 2 hereof,
including all costs of legal, engineering, inspection, and super-
vision and the costs necessary and incidental thereto and the
costs of issuance of the Bonds, or for the purpose of reimbursing
any fund or funds of the City for advances, if any, made to pay
such costs.
Moneys in the Construction Fund and in the 1986 Note Account
may be deposited in such institutions or invested in such manner
as may be lawful for the investment of City money and may be
temporarily advanced to the Bond Fund in such amount as the
Treasurer shall deem necessary to pay principal and interest on
the Bonds pending receipt of taxes levied therefor.
The proceeds of the sale of the Bonds deposited in the Note
Account to pay and redeem the 1986 Notes and any interest or
profit received from investment of such proceeds are hereby
appropriated to, and shall be applied and used solely for the
payment and redemption of the 1986 Notes. Any funds remaining in
the 1986 Note Account after payment and redemption of the 1986
Notes shall be deposited into the Construction Fund.
.. The proceeds of sale of the Bonds deposited in the Construc-
tion Fund together with any other moneys received and applicable
to the Project are hereby appropriated to, and shall be applied
and used solely for the acquisition and development of the Project
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and the costs incident thereto. Any interest or profit received
from the investment of such proceeds or moneys shall be deposited
in the Construction Fund as received and shall be applied and used
solely for costs of the Project.
If the Council shall determine that it has become impractical
to substantially accomplish any portion of the Project by reason
of changed conditions or increased costs, the Council shall not be
required to accomplish such portion of the Project. If available
funds are sufficient, the Council may make such other capital
improvements for general City purposes as are deemed necessary or
desirable by the Council. Upon completion of the Project modified
by the Council from time to time as authorized herein, any unex-
pended Bond proceeds shall be applied to the redemption of the
Bonds.
Section 14. Sale of the Bonds and Approval of Official
Statement. The Bonds shall be sold to Peoples National Bank of
Washington (the "Underwriter") for a price of 98% of par and
pursuant the terms of this ordinance and the written offer of the
Underwriter delivered to the City Council on this date. It is
hereby found and determined that such negotiated sale is in the
best interests of the City. Upon the passage of this ordinance,
the proper officials of the City are authorized and directed to
undertake all action necessary for the prompt execution and
delivery of the Bonds to the purchaser thereof.
The City hereby ratifies the distribution of the preliminary
Official Statement, dated April 30, 1987, by the Underwriter in
connection with the offering of the Bonds to prospective pur-
chasers and approves the delivery of the final Official Statement
to purchasers and others in connection with the sale and delivery
of the Bonds. The City Clerk is hereby authorized to execute the
final Official Statement.
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Section 15. Temporary Bonds. Until the definitive Bonds are
prepared, the City may execute a temporary Bond which shall be
typewritten, and which shall be delivered to the Bond purchaser or
purchasers in lieu of definitive Bonds, but subject to the same
provisions, limitations, and conditions as the definitive Bonds.
Temporary Bonds shall be dated as of the date of the Bonds, shall
be in the denomination equal to the principal amount of the Bonds,
shall be numbered from T-1 upward, shall be substantially of the
tenor of such definitive Bonds, but with such omissions, inser-
tions, and variations as may be appropriate to temporary bonds,
shall be issued in fully registered form, shall be signed by the
Mayor and the Clerk of the City Council, and shall have the seal
of the City impressed thereon.
Upon surrender to the City of any such temporary Bond, the
City, without charge to the registered owner, shall execute and
deliver to the registered owner of the temporary Bond in exchange
therefor, definitive Bonds of the same maturities, interest rates,
redemption provisions, and aggregate principal amount as the
temporary Bond surrendered. Until so exchanged, the temporary
Bond shall be in all respects entitled to the same benefit and
security as definitive Bonds, executed and issued pursuant to this
ordinance.
Section 16. Outstanding Debt and Assessed Valuation. The
actual value of the taxable property in the City as ascertained by
the last preceding assessment for City purposes is in excess of
$319,397,304. The total principal amount of outstanding general
obligation indebtedness of the City (including all conditional
sales contracts and financing leases), issued without a vote of
the people, including the principal amount of the Bonds, is
$429,764 as of May 11, 1987. The total principal amount of
outstanding general obligation indebtedness of the City (including
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all conditional sales contracts and financing leases), whether
voted or nonvoted, including the principal amount of the Bonds, is
$429,764 as of May 11, 1987.
t Section 17. Severability. If any one or more of the cove-
nants or agreements provided in this ordinance to be performed on
the part of the City shall be declared by any court of competent
jurisdiction to be contrary to law, then such covenant or cove-
nants, agreement or agreements, shall be null and void and shall
be deemed separable from the remaining covenants and agreements of
this ordinance and shall in no way affect the validity of the
other provisions of this ordinance or of the Bonds.
Section 18. Effective Date. This ordinance shall take
effect and be in force five (5) days from and after its passage,
approval and publication as required by law.
PASSED AND APPROVED at a regular meeting of the City Council
of the City of Medina, Washington held this llth day of May, 1987,
and approved by the Mayor on May //, 1987.
CITY OF MEDINA, WASHINGTON
By
Mayor
ATTEST:
Le h erk - C ' p
I; ' L�.hZI;'C�; hereby certify that 1 8. 19. City CloA
of the City q9 Medina; that annexed hereto is ordinance No._.X
Et 7'li'.fU: �Rf<r4/i./r'r,/<(,lr. ✓�l.s.//u ee�.{{yy4-rd�.�/ nuLi/
ryl7_u'. c.G�lrZ'fY- .e%JL Z•nSG/�rlr.L Gr� r�Gf[r,CL[i
h:,'::" 9,o tmo and r e«cy of such or;llu::nrn w!fid:. rula!r6d and
e,,:ed aczmdinng to thect laua of tho State of Wash?'9%7i relaing to ibirdtlass
cities beginning five days or more before its efim ive date.
City Clark
Clark
City Uerk
SERF
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CERTIFICATE
I, the undersigned, Clerk of the City Council ("Council") of
the City of Medina, Washington (herein called the "City"), DO
HEREBY CERTIFY:
1. That the attached ordinance numbered 451 (herein called
the "Ordinance") is a true and correct copy of a ordinance of the
City, as finally adopted at a meeting of the Council held on the
11 day of May 1 1987, and duly recorded in my office.
2. That said 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 Council was present throughout the meeting and a
legally sufficient number of members of the Council voted in the
proper manner for the adoption 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 and affixed
the official seal of the City this 17 day of May , 1987.
[City Seal]
JG375 87/05/08