ORD 94-34 LID 1412/08!94 15:58 FAX 206 635 7750 INSLEE-BEST
ORDINANCE NO. 94 - 3 4
AN ORDINANCE of the City of Bainbridge Island, Washington,
authorizing the issuance of an installment note payable out of the
Local Improvement Fund, District No. 14; fixing the amount,
form, date, interest rate and maturity date of the installment note;
authorizing the purchase of the installment note with funds from
the City's Utility Fund; and fixing the interest rate on Local
Improvement District No. 14 assessment installments.
WHEREAS, in Ordinance No. 91-12, the City established Local Improvement District
No. 14, ordered the construction and installation of water lines and appurtenances in the YCOmalt
Point area of the City, provided that payment for the improvements be made by special
assessments upon the property in LID No. 14, and established the Local Improvement Fund,
District No. 14; and
WHEREAS, in Ordinance No. 92-13, the City modified, approved and confirmed the
assessments and assessment roll of LID No. 14, and levied and assessed the cost and expense
of the improvements against the property shown on the assessment roll. and
WHEREAS, RCW 35.45.150 authorizes the City to issue and sell installment notes
payable out of the local improvement district fund at any time after the thirty day period allowed
by law for the payment of assessments of any district without penalty or interest, in a total
amount representing the balance of the cost and expense of the local improvement district to be
borne by the property owners of the district; and
WHEREAS, RCW 35.45.150 also provides that local improvement installment notes
which are within the protection of the local improvement guaranty fund law shall be considered
legal investments for any available surplus funds of the City which are authorized to be invested
in the City's local improvement district bonds or warrants, and any such +nstalli1ent notes may
be sold or transferred by the City on such terms or conditions as the City Council may
determine, or may be issued to another fund of the City; and
WHEREAS, the City Council has determined that it ism the best interests of the City
to issue an installment note in the amount of the cost and expellee of LID No. 14 to be borne
by the property owners within LID No. 14, payable out of the Local Improvement Fund, District
No. 14; and
WHEREAS, the City Council has determined that it is in the best interests of the City
to invest funds from the City's Utility Fund in the purchase of the installment note issued by the
City payable out of the Local Improvement Fund, District No. 14; now, therefore,
THE CITY COUNCIL OF THE CITY OF BAINBRIDGE ISLAND, WASHINGTON,
DO ORDAIN as follows:
FAI)MMAL\0073420.01 12/08/94 - 1 -
U003
12/19/94 14:52 FAX 206 635 7720 INSLEE BEST
IM002/002
Section . Authorization for Issuance of Installment Note. The total amount of the
assessment roll in the City's Local Improvement District No. 14, created under Ordinance No.
91-12, passed February 28, 1991, was $221,994.50. The 30 day period for making cash
payments of assessments without interest in the District expired on June 29, 1992, and the total
amount of assessments paid in cash was $53,565, leaving a balance of assessments unpaid on
the assessment roll in the amount of $168,429.50. The City shall therefore pursuant to RCW
35.45.150 issue and sell an Installment Note payable out of the Local Improvement Fund,
District No. 14 (the "Note Fund"), as a single installment note in the total principal sum of
$168,429.50. Application of funds in the Note Fund for the reduction of the principal and
interest amounts due on the Installment Note shall be made not less than once each year
beginning with the issue date of the Installment Note.
Section 2. Form Contents and 17xecution of Installment Note. The Installment Note
shall be printed, lithographed, or typed on bond paper in a form consistent with the provisions
of this ordinance and state law, shall be signed by the Mayor and the City Clerk, either or 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. The Installment Note shall be dated
December 31, 1994, and shall mature on July 1, 2002. The Installment Now shall bear interest
at the rate of 6.5 percent per annum (computed on the basis of a 360 day year of twelve 30 day
months), payable annually beginning July 1, 1995.
The Installment Note shall bear on its face: (1) the name of the payee; (2) the number
of the Local Improvement District from whose funds the notes are payable, which is number 14;
(3) the date of issue of the installment note; (4) the date on which the note, or the final
installment on the note, shall become due; (5) the rate or rates of interest, as provided by the
City Council, to be paid on the unpaid balance of the note; and (6) such manual or facsimile
signatures and attestations as are required by state statute to appear on the City's warrants. The
reverse side of the Installment Note shall bear a tabular payment record which shall indicate at
prescribed installment dates, the receipt of any Local Improvement District funds for the purpose
of servicing the debt evidenced by the Installment Note. Any such receipts shall first be applied
toward the interest due on the unpaid balance of the Installment Note, and any additional funds
shall be applied to reduce the principal amount of the Installment Note. The tabular payment
record on the reverse side of the Installment Note shall also show the unpaid principal balance
due on the Installment Note, together with sufficient space opposite each transaction affecting
the Note for the manual signature of the City Clerk, or of any other registered payee of
presenting the Installment Note for installment payments.
Only the Installment Note bearing a Certificate of Authentication in the following form,
manually signed by the Note Register, shall be valid or obligatory for any purpose or entitled
to the benefits of this ordinance:
FADMSULA,L\0073420.01 12/19/94 - 2 -
12/08/94 16:00 FAX 206 655 7750 INSLEE-BEST
CERTIFICATE OF AUTHENTICATION
This Note is the fully registered City of Bainbridge Island, Washington, Local
Improvement District No. 14 Installment Note described rZ
Note Ordinance.
Director of Department of Finance
Note Register
Section 3. Appointment of Note Re&trar: Registration and Transfer of Note. The
City's Director of the Department of Finance is appointed Note Registrar for the Installment
Note. The Note shall be issued to the City's Utility Fund (the "Registered Owner") only in
registered form as to both principal and interest and shall be recorded on books or records
maintained by the Note Registrar (the "Note Register"). The Note Register shall contain the
name and mailing address of the Registered Owner. The Installment Note may not be assigned
or transferred by the Registered Owner. When the Installment Note has been paid in full, both
principal and interest, it shall be surrendered by the Registered Owner to the Note Registrar,
who shall cancel the Installment Note.
The Note Registrar shall keep, or cause to be kept, at the Note Registrar's office,
sufficient books for the registration of the Installment Note. The Note Registrar is authorized,
on behalf of the City, to authenticate and deliver the Installment Note in accordance with the
provisions of the Installment Note and this ordinance, to serve as the City's paying agent for the
Installment Note and to carry out all of the Note Registrar's powers and duties under this
ordinance and the City's ordinance establishing a system of registration for the City's bonds and
obligations. The Note Registrar shall be responsible for the representations contained in the
Note Registrar's Certificate of Authentication on the Installment Note.
Section 4. Payment of Installment Note. Both principal of and interest on the
Installment Note shall be payable solely out of the Note Fund, and from the City's Local
Improvement Guaranty Fund, and shall be payable in lawful money of the United States of
America. Interest on the Installment Note, and any prepaid principal on the Installment Note,
shall be paid by check, draft or interfiind transfer on the interest payment date to the Registered
Owner at the address appearing on the Note Register. The final installment of principal and
interest on the Installment Note at maturity or prior repayment is payable at the office of the
Note Registrar, upon presentation and surrender of the Installment Note.
Section 5. R[MaMent Provisions. The City reserves the right to prepay principal on
the Installment Note prior to its stated maturity date on any interest payment date, at par plus
accrued interest to the date fixed for prepayment, whenever there shall be sufficient money in
the Note Fund to prepay the principal of the Installment Note over and above the amount
required for the payment of the interest then due on the Installment Note. No notice of
prepayment to the Registered Owner is required. Interest on the principal of the Installment
Note prepaid shall cease to accrue on the date of such prepayment.
F:\DMS\RAI.\0073420.01 12/08/94 -3 -
01005
12/08/94 16:00 FAX 206 635 7750 INSLEE-BEST 0 006
Section 6. Failure to Redeem Installment Note. If the Installment Note is not redeemed
when properly presented at its maturity date, the City shall be obligated to pay interest in the
Installment Note at the same rate provided therein from and after its maturity date until the
Installment Note, both principal and interest, is paid in full or until sufficient money for its
payment in full is on deposit in the Note Fund and the Installment Note has been called for
payment by giving notice of that call to the Registered Owner.
Section 7. Purchase of Installment Note by Utility Fund. Pursuant to RCW 35.45.150,
the City will purchase the Installment Note from funds available for investment on deposit in the
City's Utility Fund, at a price of par plus any accrued interest from the date of the Installment
Note to the date of its transfer to the City. The City is authorized to invest funds from the
City's Utility Fund in the purchase of the Installment Note. The proper City officials are
authorized and directed to take all actions necessary for the prompt delivery of the Installment
Note and for the proper application and use of the proceeds of the sale of the Installment Note.
Section g. Fig Interest Rate on Assessments. The interest rate on the installments Lo
and delinquent payments of the special assessments in cal Improvement District No. 14 is
revised. and fixed at the rate of 6.5 percent per annum.
Section 9. Effective Date. This ordinance shall be effective five days from and after its
passage, approval, and publication as required by law.
PASSED by the City Council this 15 t h day of D e c em b e r , 1994.
APPROVED by the Mayor this 16 t lday of December , 1994.
(1)0 -y -r
Janet K. West, Mayor
ATTEST/AUTHENTICATE:
wST/AUTHENTICATE:
J,_.,
Siisan P. Kasper, City Clerk
APPROVED AS TO FORM:
Rod P. Kaseguma, City Attorney
FADMS\RAL\0073420.01 12/08/94 - 4 -
12/08/94 16:01 FAX 206 635 7750 INSLEE-BEST Q007
FILED WITH THE CITY CLERK: December 9, 1994
PASSED BY THE CITY COUNCIL: . December 15, 1994
PUBLICATION: December 21, 1994
EFFECTIVE DATE: December 2 6 , 1994
ORDINANCE NO.: 9 4 - 3 4
FADMS\RAI,\0073420.01 12/08/94 - 5 -