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Home My WebLink AboutO-2567 - Amends Ord. 2511, water and sewer revenue bond issuance (Special),--------------------c---------------------------.---- ORISINAl CITY OF MARYSVILLE,WASHINGTON ORDINANCE NO.;)..5 b 7 AN ORDINANCE of the City of Marysville,Washington,relating to the Waterworks Utility of the City; and amending Section 4 of Ordinance No. 2511, to extend the maturity date of its Water and Sewer Revenue Bond Anticipation Note, 2004 (Revolving Line of Credit) and limit its outstanding principal balance to $17,500,000,and ratifying and confirming Ordinance No. 2511 in all other respects not inconsistent with the terms and purposes of this ordinance. Passed April 11,2005 This document preparedby: FosterPepper &Shefelman PLLe 1111 Third Avenue,Suite3400 Seattle,Washington 98101 (206)447-4400 TABLE OF CONTENTS Page Recitals 1 Section 1.ArnendmentofOrdinanceNo.2511 1 Section 2. Ratification of Terms and Conditions of the Note .4 Section 3.Authorization of Fees .4 Section 4. City Officials Authorized to Proceed :4 Section 5. Effective Date of Ordinance .4 -1- 50512313,02 \ CITY OFMARYSVILLE, WASHINGTON ORDINANCENO.JS{,7 AN ORDINANCE of the City of Marysville, Washington, relating to the Waterworks Utility of the City; and amending Section 4 of Ordinance No. 2511, to extend the maturity date of its Water and Sewer Revenue Bond Anticipation Note, 2004 (Revolving Line of Credit) and limit its outstanding principal balance to $17,500,000, and ratifying and confirming Ordinance No. 2511 in all other respects not inconsistent with the terms and purposes of this ordinance. WHEREAS, by Ordinance No. 2511, passed on April 12,2004,the City of Marysville, Washington (the "City"), provided for the issuance of its Water and Sewer Revenue Bond Anticipation Note, 2004 (Revolving Line of Credit) (the "Note") in an aggregate principal amount not to exceed $30,000,000 to mature April 29, 2005, and WHEREAS, completion of arrangements to issue the anticipated bonds has been delayed, and the proceeds of those bonds are necessary to repay the Note and to provide permanent financing for the intended improvements; and WHEREAS, the Bank has offered to extend the maturity date of the Note an additional 60 days to June 30, 2005, with all other terms and conditions of the Note to remain the same, except that the outstanding principal balance of the Note shall not exceed $17,500,000; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MARYSVILLE, WASHINGTON, DO ORDAIN as follows: Section I. Amendment of Ordinance No. 2511. For the purpose of extending the term of the Note in accordance with the offer of the Bank, which is found to be in the best interest of the 50512313.02 -------------------------- City and accordingly is accepted, Section 4 of Ordinance No.2511 should be and is amended to read as follows: "Section 2. Description of Note.For the purpose of providing a part of the funds with which to pay the costs of carrying out the Plan of Additions pending the receipt of the proceeds of the issuance and sale of the water and sewer revenue bonds authorized herein, the City shall issue and deliver its Water and Sewer Revenue Bond Anticipation Note, 2004 (Revolving Line of Credit) (the "Note"), in the principal amount of not to exceed at any time $30,000,000. The Note shall be dated as of the date of its delivery to the Bank ("Date of Issue"); shall mature on June 30, 2005 (the "Maturity Date"); shall be issued in fully registered form as to both principal and interest; and shall be numbered S-I,with any additional designation as the Finance Director, as the Note Registrar, deems necessary for purposes of identification. "The City may make Draws upon the Note in any amount (so long as the amount of the Draw does not cause the outstanding principal balance of the Note to exceed $17,500,000 at any one time) on any Business Day (subject to restrictions for Draws at the LIBOR Fixed Rate) from the Date of Issue to but excluding the Maturity Date, for the Note purposes identified above. No Draw may exceed the total amount of the costs to be paid from such Draw, and the proceeds of each Draw shall be used immediately to pay those costs. Draws shall be recorded in such form as the City and the Bank may agree. The Note evidences a revolving line of credit, and all Draws that have been repaid may be reborrowed subject to the restrictions of this paragraph. "For each Loan Draw, the City may choose from two options for variable rate interest to be assessed against that particular Loan Draw as follows: "Option 1.LIBOR Rate Option.If this option is selected by the City, that particular Loan Draw on the Note shall bear interest at a variable rate equal to -2- 50512313.02 50512313.02 the sum of (a) 65%of the LIBOR Fixed Rate plus (b) a spread of 1.20%, for the Interest Period designated in the City's written request for a Loan Draw.Written notices of a Loan Draw under the LIBOR Rate Option must be given by the City no later than on the third London Banking Day prior to the date of issue, in the case of a Loan Draw to be made under the LIBOR Rate Option on the date of issue,or otherwise no later than on the third London Banking Day prior to the designated Interest Period.The Note shall bear interest at the Prime Rate Option unless the LIBOR Rate Option is specifically selected.At the termination of any Interest Period,LIBOR Principal shall revert to the Prime Rate Option unless the City directs otherwise pursuant to this Option I of this Section 4.Interest under the LIBOR Rate Option shall be computed on the principal amount of the LIBOR Principal on the basis of a 360-day year and actual days elapsed for the actual number of days the principal amount is outstanding. "Option 2. Prime Rate Option.Unless otherwise designated pursuant to The LIBOR Rate Option,each Loan Draw shall bear interest at the rate of 49%of the Prime Rate, and the interest rate to be paid on any such Loan Draw shall be adjusted as of the same day following the effective date of any adjustment in the Prime Rate.Interest on each Loan Draw shall accrue from the date of that Loan Draw and shall be computed on the principal amount of the Loan Draw outstanding on the basis of a 365/366-day year for the actual number of days the principal amount of the Loan Draw is outstanding.Prime Rate Principal may at any time be converted to LIBOR Principal by the City following the procedures set forth under the LIBOR Rate Option. -3- "The City Council finds that the use of the above options for setting of the above interest rate indexes is in the best interest of the City. "Principal of and interest on the Note are payable on the Maturity Date. "If the Note is not paid when properly presented for payment on the Maturity Date, the City shall be obligated to pay interest on each Loan Draw at the Prime Rate from and after its maturity or prior redemption date until the Note, both principal and interest, is paid in full or until sufficient money for that payment in full is on deposit in the Note Fund." Section 2. Ratification of Terms and Conditions of the Note. All other provisions, terms and conditions of Ordinance No. 2511 and of the Note, not inconsistent with the provisions of Section I of this ordinance, are ratified and confirmed in all respects. Section 3. Authorization of Fees. An extension fee in the amount of $1,000 shall be payable to the Bank upon the delivery ofthe substitute Note. Bank Counsel fees in the estimated amount of $250 shall be payable to the Bank's Counsel at or shortly following delivery of the substitute Note. Section 4. City Officials Authorized to Proceed. Proper City officials are authorized and directed to do all things reasonable and necessary to carry out the provisions, terms and conditions of the Note,of this ordinance and OrdinanceNo. 2511. Section 5. Effective Date of Ordinance. This ordinance shall take effect and be in force from and after its passage and five days following its publication as required by law. -4- 50512313.02 PASSED by the City Council and APPROVED by the Mayor of the City of Marysville, Washington,at a regular open public meeting thereof, this II th day of April, 2005. By)LzZ~ DENNIS 1.KENDALL,Mayor KER, City Clerk APPROVED AS TO FORM: &SHEFELMAN PLLC -5- 50512313.02