Ord 93-181
ORDINANCE NO.
93-l81
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
FEDERAL WAY, WASHINGTON, PROVIDING FOR THE
ISSUANCE AND SALE OF LIMITED TAX GENERAL
OBLIGATION BOND ANTICIPATION NOTES OF THE CITY IN
THE AGGREGATE PRINCIPAL AMOUNT OF $955,000, IN
ORDER TO PROVIDE INTERIM FINANCING FOR THE
ACQUISITION AND IMPROVEMENT OF PROPERTY; FIXING
THE DATE, MATURITY, FORM, TERMS AND COVENANTS OF
SAID NOTES; AND AUTHORIZING THE SALE OF SAID
NOTES.
WHEREAS, the City of Federal Way, Washington (the "City")
has determined that approximately 12.02 acres of property and
appurtenances on such property at 3200 S.W. Dash Point should be
acquired and improved in the City; and
WHEREAS, the City has received a grant from the State of
Washington in the amount of $405,000, which the City intends to
use
solely
to
fund
acquisition
of
the
improvements
on
the
property; and
WHEREAS, the City has applied to receive King County open
space bond proceeds in the amount of $1,397,739, which the City
intends to use to acquire a portion of the property; and
WHEREAS,
the
City
has
applied
to
receive
conservation
futures
to
cover
the
price
of
acquiring
and
improving
the
property that is not covered by the state grant or King County
bond proceeds; and
WHEREAS, pending the receipt of the grant monies, it is in
the best interest of the City to issue general obligation bond
anticipation
notes
to
provide
interim
financing
for
the
acquisition and improvement of the property; and
COpy
WHEREAS,
if
the
City
does
not
receive
grant
monies
sufficient to retire all of such notes, the City will use other
available funds or issue general obligation bonds to repay such
notes; and
WHEREAS, Chapter 39.50 RCW authorizes the issuance of short-
term obligations by cities in anticipation of the issuance of
bonds or other funds;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
WASHINGTON, DO ORDAIN AS FOLLOWS:
SECTION 1.
Definitions.
As used in this ordinance,
the
following words shall have the following meanings:
"Acquisi tion Fund" means the Acquisition Fund authorized by
Section 6.
"Bonds"
means
the
Limited
Tax
General
Obligation
Bonds
authorized pursuant to Section 2 of this ordinance.
"City"
means
Federal
Way,
a
political
subdivision
duly
organized and existing under the laws of the State of Washington.
"Council" means the City Council
of Federal Way as the same
shall be duly and regularly constituted from time to time.
"Notes" means the bond anticipation notes in the aggregate
principal
amount
of
$955,000
to be
issued pursuant
to
this
ordinance to provide interim financing for the Project.
"Note Fund" means the special fund of the City designated as
the Limited Tax General Obligation Note Fund, 1993, authorized to
be created by Section 7 hereof.
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"Note Register" means the books or records maintained by the
Note Registrar for the purpose of registration of the Notes.
IINote Registrar" means collectively the fiscal agency of the
State of Washington in either Seattle, Washington or New York,
New York, for the purposes of registering and authenticating the
Notes,
maintaining
the
Note
Register,
effecting
transfer
of
ownership of the Notes, and paying the principal of and interest
on the Notes.
"Project"
means
the
acquisition
and
improvement
of
approximately l2.02 acres of property and appurtenances on such
property at 3200 S.W. Dash Point in the City.
SECTION 2.
Authorization of Bonds.
If the City does not
receive grant monies or have other funds available to repay the
Notes,
there
shall
be
issued
and
sold
limited
tax
general
obligation bonds
of the City to be designated "Federal Way,
Washington
Limited
Tax
General
Obligation
Bonds,
199 "
(the
"Bonds") .
The Bonds shall be in such denomination(s) and form; shall
be dated and bear interest at such rate or rates;
shall be
payable at such place or places; and shall have such option of
payment prior to maturity as provided hereafter by ordinance of
the Council.
The proceeds of the Bonds shall be paid into the
Note Fund and shall be applied to the extent necessary, together
with other available funds, to pay and redeem the Notes.
SECTION 3.
Authorization of Notes.
In order to provide
interim financing for the Project and paying costs of issuing the
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Notes and in anticipation of the receipt of grant monies and, if
necessary, the issuance of the Bonds, the City shall issue its
short term obligations in the form of bond anticipation notes in
the aggregate principal amount of $955,000.
The Notes shall be
designated
"Federal
Way,
Washington,
Limited
Tax
General
Obligation Bond Anticipation Notes, 1993," shall be dated as of
the date of their delivery to the purchaser, shall be in fully
registered form, shall be in denominations of $5,000 each, or any
integral multiple thereof at the option of the registered owner,
shall be numbered and shall mature on July l,
1994.
The Notes
shall bear interest on unpaid principal from their date at the
rate to be set forth in the purchase contract to be accepted by
the City Manager pursuant to Section l2,
which rate shall not
exceed 3.50% per annum.
Interest shall be payable at maturity.
Interest on the Notes shall be calculated on the basis of a 360-
day year with twelve 30-day'months.
The fiscal agencies of the State of Washington in the cities
of Seattle,
Washington and New York,
New York,
shall act as
registrar for the Notes
(collectively,
the
"Note Registrar").
Both principal of and interest on the Notes shall be payable in
lawful money of the United states of America upon presentation
and surrender of
the Notes by the
registered owners
at
the
principal offices of the Note Registrar in the cities of Seattle,
Washington or New York, New York.
SECTION
4.
Right
of
Prior Redemption.
The
Notes
are
subject to prepayment prior to their scheduled maturity in whole
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or in part on December l, 1993 and on the first day of any month
thereafter at a price of par plus accrued interest to the date of
redemption.
Notice of any intended redemption shall be sent by
first class mail at least 30 days prior to the redemption date to
the registered owners of the Note to be redeemed at the addresses
shown on the Note Registrar.
SECTION 5.
Payment of the Notes.
Both the principal of
and interest on the Notes are payable solely from the proceeds of
the sale of the Bonds or refunding bond anticipation notes to be
issued by
the
Ci ty or
from
any
funds
of
the
City
legally
available
therefor,
including
proceeds
from
any
sales
of
property.
The City hereby covenants with the registered owner of
each
Note
that
it
will
issue
the
Bonds,
refunding
bond
anticipation notes or a combination of the foregoing in an amount
sufficient, with any legally available funds, to pay when due the
principal of and interest on the Notes and will thereupon redeem
the Notes.
The City hereby covenants to pay and redeem the
Notes, as the same becomes due and payable, with other legally
available funds of the City,
including but not limited to the
levying of sufficient taxes upon all taxable property within the
City subject to taxation in amounts within and as a part of the
levy permitted to cities without a vote of the electors.
SECTION 6.
Acquisition Fund.
The city Manager or his
designee is hereby authorized to create a special fund of the
City
to
be
known
as
the
"Property Acquisition
Fund,
1993"
("Acquisi tion
Fund") .
The
proceeds
of
the
Notes
shall
be
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deposited into the Acquisition Fund and shall be utilized to pay
the costs of acquiring and improving the Project described in
Section 2, and costs incidental thereto, and all costs incurred
in connection with the issuance of the Notes.
Note
proceeds
on
hand
in
the
Acquisition
Fund
not
immediately needed to pay the costs of the Project and the costs
of the issuance and sale of the Notes shall be deposited in or
with such institutions or shall be invested by the City Manager
or his designee in such obligations as may now or hereafter be
permitted to cities of the State of Washington by law and which
will mature prior to the date on which the money so invested is
anticipated to be needed.
All interest earned and income or
profits derived by virtue of such investments shall remain in the
Acquisition Fund and be used for the purposes for which the Notes
are being issued, except that such money may be transferred to
the Note Fund to pay the interest or principal of the Notes as
the same comes due.
Note proceeds,
or income therefrom,
not
expended upon acquisition or improvement of the Project, shall be
deposited into the Note Fund to pay the principal of and interest
on the Notes.
SECTION 7.
Note Fund.
The City Manager or his designee is
hereby authorized and directed to create a special fund of the
City to be known as the "Limited Tax General Obligation Note
Fund,
1993"
(the "Note Fund"), which Note Fund shall be drawn
upon for the sole purpose of paying the principal of and interest
on the Notes.
Money on deposit in the Note Fund not immediately
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needed to pay such interest or principal may be
temporarily
deposi ted in such institutions or invested in any obligations
which are legal investments for City funds.
Any interest or
profit from the investment of such money shall be deposited into
the Note Fund.
The City hereby covenants that it will deposit
money
into
the
Note
Fund
as
provided
in
Section 5
of
this
ordinance in amounts and at times sufficient to pay the interest
or principal on the Notes as the same becomes due and payable.
SECTION 8.
Tax Covenants.
The City covenants that it will
not take or permit to be taken on its behalf any action that
would adversely affect the exemption from federal income taxation
of the interest on the Notes and will take or require to be taken
such acts as may reasonably be within its ability and as may from
time to time be required under applicable law to continue the
exemption from federal income taxation of the interest on the
Notes.
wi thout limiting the generality of the foregoing,
the
City covenants that it will not take any action or fail to take
any action with respect to the investment of the proceeds of any
Notes or other funds that would result in constituting the Notes
"arbitrage bonds" within the meaning of such term as used in
Section l48 of the Internal Revenue Code of 1986, as amended (the
"Code") .
The City further covenants that it will not take any
action or permit any action to be taken that would cause the
Notes to constitute "private activity bonds" under Section l4l of
the Code.
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SECTION
9.
Form
of
Notes.
The
Notes
shall
be
in
substantially the following form:
UNITED STATES OF AMERICA
$
No.
STATE OF WASHINGTON
FEDERAL WAY, WASHINGTON
LIMITED TAX GENERAL OBLIGATION
BOND ANTICIPATION NOTE, 1993
MATURITY DATE:
July 1, 1994
CUSIP NUMBER:
REGISTERED OWNER:
PRINCIPAL AMOUNT:
DOLLARS
Federal Way, Washington, a political subdivision of the
State of Washington (the "City"), hereby acknowledges itself to
owe and for value received promises to pay to the Registered
Owner identified above, or registered assigns, on the Maturity
Date the Principal Amount specified above and to pay interest
thereon from the date hereof, or the most recent date to which
interest has been paid or duly provided for until payment of this
note, at the rate of % per annum. Both principal of and
interest on this note are payable in lawful money of the United
States of America. Interest shall be calculated on the basis of
a year of 360 days and twelve 30-day months and shall be paid on
the Maturity Date. The Principal Amount hereof shall be paid on
the Maturity Date upon presentation and surrender of this note at
the office of the fiscal agency of the State of Washington in
either Seattle, Washington or New York, New York (the "Note
Registrar") .
This note is one of an authorized issue of notes of like
date and tenor, except as to number and amount, in the aggregate
principal amount of $955,000. The notes of this issue are issued
under and in accordance with the provisions of the Constitution
and applicable statutes of the State of Washington and Ordinance
No. - (herein called the "Note Ordinance") of the City for the
purpose of providing interim financing for the acquisition and
improvement of property.
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Both principal of and interest on this note are payable from
grants, land sale proceeds, and other legally available funds of
the City, the proceeds of limited tax general obligation bonds or
refunding bond anticipation notes to be issued by the City,
within and as a part of the tax levy permitted to cities without
a vote of the electors.
This note is subj ect to redemption prior to its scheduled
maturity in whole or in part on December l, 1993 and on the first
day of each month thereafter upon at least 30 days notice to each
owner of a note to be redeemed.
The City hereby irrevocably covenants and agrees with the
Registered Owner of this note that it will keep and perform all
the covenants of this note and of the Note Ordinance to be by it
kept and performed. Reference is hereby made to the Note
Ordinance for a complete statement of such covenants and for the
definition of capitalized terms used herein.
Notes are interchangeable for notes of any authorized
denomination of equal aggregate principal amount upon
presentation and surrender to the Note Registrar.
This note shall not be valid or become obligatory for any
purpose or be entitled to any security or benefit under the Note
Ordinance until the Certificate of Authentication hereon shall
have been manually signed by the Note Registrar.
It is hereby certified that all acts, conditions and things
required by the Constitution and statutes of the state of
Washington to exist, to have happened, been done and performed
precedent to and in the issuance of this note have happened, been
done and performed and that the issuance of this note and the
notes of this series does not violate any constitutional,
statutory or other limitation upon the amount of indebtedness
that the City may incur.
IN WITNESS WHEREOF, Federal Way, Washington, has caused this
note to be signed with the manual or facsimile signature of the
Mayor and attested by the manual or facsimile signature of the
City Clerk, and the seal of the City to be impressed or a
facsimile thereof to be imprinted hereon, as of this day of
July, 1993.
[SEAL]
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FEDERAL WAY, WASHINGTON
By
Mayor
ATTEST:
City Clerk
CERTIFICATE OF AUTHENTICATION
This note is one of the notes described in the within-
mentioned Note Ordinance and is one of the Limited Tax General
Obligation Bond Anticipation Notes, 1993 of Federal Way,
Washington, dated as of July --' 1993.
WASHINGTON STATE FISCAL AGENCY
Note Registrar
By
Authorized Officer
The following abbreviations, when used in the inscription on
the face of the within note, shall be construed as though they
were written out in full according to applicable laws or
regulations.
TEN COM-
TEN ENT -
JT TEN-
as tenants in common
as tenants by the entireties
as joint tenants with
right of survivorship and
not as tenants in common
(TRANSFERS) MIN ACT -
custodian
UNIF GIFT
(Cust) (Minor)
under Uniform Gifts (Transfers) to Minors
Act
(State)
Additional abbreviations may also be used though not in
list above.
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ASSIGNMENT
FOR VALUE RECEIVED,
assigns and transfers unto
the
undersigned
hereby
sells,
PLEASE INSERT SOCIAL SECURITY OR TAXPAYER IDENTIFICATION
NUMBER OF TRANSFEREE / /
(Please print or typewrite name and address, including zip
code, of Transferee)
the within note and does hereby irrevocably constitute and
appoint , attorney in fact to
transfer said note on the books kept for registration
thereof with full power of substitution in the premises.
DATED:
SIGNATURE GUARANTEED:
NOTE: The signature on this
Assignment must correspond
wi th the name of the
Registered Owner as it appears
upon the face of the wi thin
note in every particular,
without alteration or
enlargement or any change
whatever.
SECTION lO.
Execution and Deli very of Notes.
The Notes
shall
be
executed
on behalf
of
the
City
by
the
manual
or
facsimile signature of the Mayor and attested by the manual or
facsimile signature of the City Clerk.
The official seal of the
City shall be impressed or a facsimile thereof imprinted on each
Note.
In case any officer whose signature shall appear on any
Note shall cease to be an officer before the delivery of such
Note, such signature shall nevertheless be valid and sufficient
for
all
purposes,
and
such
Note
may
be
authenticated
and
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delivered the same as if such officer had remained in office
until such delivery.
Only such Notes
as
shall bear
thereon a Certificate
of
Authentication
in
the
form
hereinbefore
recited,
manually
executed by the Note 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 Notes so authenticated have been duly executed, authenticated
and delivered hereunder and are entitled to the benefits of this
ordinance.
SECTION 11.
Note Registrar.
The City hereby specifies and
adopts the system of registration for the Notes approved by the
Washington State Finance Committee.
The Note Registrar shall
keep,
or cause to be kept,
at its principal corporate trust
office sufficient books for the registration and transfer of the
Notes which shall at all times be open to inspection by the City.
The Note Registrar is authorized,
on behalf of the City,
to
authenticate and deliver the Notes transferred or exchanged in
accordance with the provisions of such Notes and this ordinance
and to carry out all of the Note Registrar's powers and duties
under this ordinance.
The Note Registrar shall be responsible
for
its
representations
contained
in
the
Certificate
of
Authentication on the Notes.
The Note Registrar may become the owner of Notes with the
same rights it would have if it were not the Note Registrar, and
to the extent permitted by law, may act as depositary for and
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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 Note owners.
SECTION 12.
Sale of the Notes.
The City Manager is hereby
authorized to execute and deliver a purchase contract with Piper
Jaffray Inc. for the sale of the Notes.
Such offer shall set
forth the interest rate for the Notes and the purchase price for
the Notes.
SECTION 13.
Agreements Severable.
If anyone or more of
the covenants 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 covenants, agreement or agreements, shall be null and
void and shall be deemed severable from the remaining covenants
and agreements in this ordinance and shall in no way affect the
validity of the other provisions of this ordinance or of the
Notes.
SECTION l4.
Effecti ve Date.
This ordinance shall be in
full force and effect thirty days from and after its passage as
provided by law.
PASSED AND APPROVED at a regular meeting, this 6th day of
July, 1993.
FEDERAL WAY, WASHINGTON
~M~(~
May~r Robert Stead
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C~ty Clerk
APPROVED AS TO FORM:
I\"---'~ (\p.a~
Nancy. Neraas
Bond Counsel for City of
Federal Way
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CLERK'S CERTIFICATE
I,
the undersigned,
the duly chosen,
qualified and acting
Clerk of the City of Federal Way, Washington, and keeper of the
records of the City
(hereinafter called the "City"), DO HEREBY
CERTIFY:
1.
That
the
attached
ordinance
numbered 93-/J>/
(herein
called
the
"Ordinance" )
is
a
true
and
correct
copy
of
an
ordinance of the City, as finally passed at a regular meeting of
the City held on the 6th day of July, 1993, 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
legal quorum was present throughout the meeting and a legally
sufficient number of members of the city
voted in the proper
manner
for
the
passage
of
the
Ordinance;
that
all
other
requirements and proceedings incident to the proper passage of
the 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
[SEAL]