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HomeMy WebLinkAbout4566 CITY OF BREMERTON, WASHINGTON oRDI.ANc . No. AN ORDINANCE relating to local improvement districts; amending Ordinance No. 4450; establishing Consolidated Local Improvement District No. 327/328 and Consolidated Local Improvement Fund, District No. 327/328; fixing the amount, form, date, interest rates, maturity and denominations of the Consolidated Local Improvement District No. 327/328 Bonds; providing for the sale and delivery thereof to Bank of America NW, N.A., doing business as Seafirst Bank in Seattle, Washington; and fixing the interest rate on local improvement district assessment installments. WHEREAS, the City Council of the City of Bremerton, Washington (the "City"), by Ordinance No. 4450, formed Local Improvement District No. 327 ("LID 327"), intending it to be a local improvement district for sewer utility purposes, but by clerical error had named LID 327 as Utility Local Improvement District No. 327; and WHEREAS, the City wishes to confirm the correct name of LID 327 as Local Improvement District No. 327; and WHEREAS, the City heretofore has created Local Improvement Districts Nos. 327 and 328 for various purposes; and WHEREAS, RCW 35.45.160 authorizes the establishment of consolidated local improvement districts for the purpose of issuing bonds only and provides that if the qoverning body of any municipality orders the creation of such consolidated local improvement district, the money received from the installment payment of the principal of and interest on assessments levied within the original local improvement districts shall be deposited in a consolidated local improvement district bond redemption fund to be used to redeem outstanding consolidated local improvement district bonds; NOW, THEREFORE, THE CITY OF BREMERTON DO ORDAIN: SectioD 1. Amendment of Ordinance No. 4450. Section 3 of Ordinance No. 4450 shall be amended to read as follows: "Se~tion 3. There is hereby established and created a local improvement district, utility Local Improvement District No. 327. Payment of the costs and expense of the improvement herein ordered to be assessed shall be paid from available city funds. The collections of special assessments, interest and penalties thereon shall be deposited in the City fund incurring the expense of constructing the improvements." Section 2. Consolidation of Local Improvement Districts. The 30-day period for making cash payments of assessments without interest in LID No. 327 expired on August 12, 1996, and the total amount of assessments paid in cash was $85,338.82, leaving a balance of assessments unpaid on the assessment roll in the sum of $263,904.41. The 30-day period for making cash payments of assessments without interest in LID No. 328 expired on August 5, 1996, and the total amount of assessments paid in cash was $28,641.00, leaving a balance of assessments unpaid on the assessment roll in the sum of $78,516.90. For the purpose of issuing bonds only, those local improvement districts of the City established by the following ordinances, respectively, the 30-day period for making cash payment of assessments without interest in each local improvement district having expired as described above ~16.~ -2- in the case of the assessments for each local improvement district, are consolidated into a consolidated local improvement district to be known and designated as Consolidated Local Improvement District No. 327/328: Local Improvement Created by District No. Ordinance No. 327 4450, as amended 328 4460 Section 3. Bond Fund. There is created and established in the office of the City Treasurer for Consolidated Local Improvement District No. 327/328 a special consolidated local improvement district fund to be known and designated as Consolidated Local Improvement Fund, District No. 327/328 (the "Bond Fund"). All money presently on hand representing collections pertaining to installments of assessments and interest thereon in each of the local improvement districts listed in Section 2 shall be transferred to and deposited in the Bond Fund, and all collections pertaining to assessments on the assessment rolls of those local improvement districts when hereafter received shall be deposited in the Bond Fund to redeem outstanding Consolidated Local Improvement District No. 327/328 bonds. Section 4. Authorization and Description of Bonds. Consolidated Local Improvement District No. 327/328 bonds (the "Bonds") shall be issued in the total principal sum of $342,421.31, being the total amount on the assessment rolls of Local Improvement Districts Nos. 327 and 328 remaining uncollected after the expiration of the 30-day interest free prepayment periods. The Bonds shall be dated September 1, 1996, shall mature on ~.~ -3- September 1, 2011, and shall be numbered from 1 to 68, inclusive, in the manner and with any additional designation as the Bond Registrar (collectively, the fiscal agencies of the State of Washington located in Seattle, Washington, and New York, New York) deems necessary for the purpose of identification. Bond No. 1 shall be in the denomination of $7,421.31 and Bonds Nos. 2 to 68, inclusive, shall be in the denomination of $5,000.00 each. Interest shall be computed on the basis of a 360-day year of twelve 30-day months. The Bonds shall bear interest, payable annually on September 1 of each year beginning September 1, 1997, in accordance with the following schedule: Bond Numbers Interest ~inclusive) Amounts Rates 1 to 6 $ 32,421.31 4.25% 7 to 12 30,000.00 4.65 13 to 18 30,000.00 4.80 19 to 23 25,000.00 5.00 24 to 28 25,000.00 5.15 29 to 33 25,000.00 5.30 34 to 38 25,000.00 5.40 39 to 43 25,000.00 5.50 44 to 48 25,000.00 5.60 49 to 53 25,000.00 5.70 54 to 58 25,000.00 5.80 59 to 63 25,000.00 5.90 64 to 68 25,000.00 6.00 Section 5. Reqistration and Transfer of Bonds. The Bonds shall be issued only in registered form as to both principal and interest and shall be recorded on books or records maintained by the Bond Registrar (the "Bond Register"). Such Bond Register shall contain the name and mailing address of the owner of each Bond and the principal amount and number of each of the Bonds held by each owner. Bonds may be transferred only if endorsed in the manner provided thereon and surrendered to the Bond Registrar. The transfer of a Bond shall be by the Bond Registrar's receiving the Bond to be transferred, cancelling it and issuing a new certificate in the form of the Bonds to the transferee after registering the name and address of the transferee on the Bond Register. The new certificate shall bear the same Bond number as the transferred Bond but may have a different inventory reference number or control number. Any exchange or transfer shall be without cost to the owner or transferee. The Bond Registrar shall not be obligated to exchange or transfer any Bond during the 15 days preceding any principal payment or redemption date. Sect~o~ 6. payment of Bonds. Both principal of and interest on the Bonds shall be payable solely out of the Consolidated Local Improvement Fund, District No. 327/328 (the "Bond Fund"), and from the Local Improvement Guaranty Fund of the City, and shall be payable in lawful money of the United States of America. Interest on the Bonds shall be paid by check or draft mailed to the registered owners on the interest payment date at the addresses appearing on the Bond Register on the 15th day of the month preceding the interest payment date. Principal of the Bonds shall be payable upon presentation and surrender of the Bonds by the registered owners at either of the principal offices of the Bond Registrar, at the option of the owners. Sectio~ 7. Redemption Provisions. The City reserves the right to redeem the Bonds prior to their stated maturity on any interest payment date, in numerical order, lowest numbers first, at ~5n16.~ - 5- par plus accrued interest to the date fixed for redemption, whenever there shall be sufficient money in the Bond Fund to pay the Bonds so called and all earlier numbered Bonds over and above the amount required for the payment of the interest payable on that interest payment date on all unpaid Bonds. All Bonds redeemed under this section shall be cancelled. Section 8. Notice of Redemption. The City shall cause notice of any intended redemption of Bonds to be given not less than 15 nor more than 30 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 at the time the Bond Registrar prepares the notice, and the requirements of this sentence shall be deemed to have been fulfilled when notice has been mailed as so provided, whether or not it is actually received by the owner of any Bond. Interest on Bonds called for redemption shall cease to accrue on the date fixed for redemption unless the Bond or Bonds called are not redeemed when presented pursuant to the call. In addition, the redemption notice shall be mailed within the same period, postage prepaid, to Bank of America NW, N.A., doing business as Seafirst Bank, at its principal office in Seattle, Washington, or its successor, and to such other persons and with such additional information as the City Treasurer shall determine, but these additional mailings shall not be a condition precedent to the redemption of Bonds. Sectio~ 9. Failure to Red~em Bonds. If any Bond is not redeemed when properly presented at its maturity or call date, the City shall be obligated to pay interest on that Bond at the same o~22~6.o3 - 6- rate provided in the Bond from and after its maturity or call date until that Bond, both principal and interest, is paid in full or until sufficient money for its payment in full is on deposit in the Bond Fund and the Bond has been called for payment by giving notice of that call to the registered owner of each of those unpaid Bonds. Section 10. Form and Execution of Bonds. The Bonds shall be printed, lithographed or typed on good 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. Only Bonds bearing a Certificate of Authentication in the following form, manually signed by the Bond Registrar, shall be valid or obligatory for any purpose or entitled to the benefits of this ordinance: CERTIFICATE OF AUTHENTICATION This Bond is one of the fully registered City of Bremerton, Washington, Consolidated Local Improvement District No. 327/328 Bonds described in the Bond Ordinance. Washington State Fiscal Agency Bond Registrar By Authorized Signer The authorized signing of a Certificate of Authentication shall be conclusive evidence that the Bond so authenticated has been duly executed, authenticated and delivered and is entitled to the benefits of this ordinance. 0~s2216.03 -7 - If any officer whose facsimile signature appears on the Bonds ceases to be an officer of the City authorized to sign bonds before the Bonds bearing his or her facsimile signature are authenticated or delivered by the Bond Registrar or issued by the city, those Bonds nevertheless may be authenticated, issued and delivered and, when authenticated, issued and delivered, shall be as binding on the City as though that person had continued to be an officer of the City authorized to sign bonds. Any Bond also may be signed on behalf of the City by any person who, on the actual date of signing of the Bond, is an officer of the City authorized to sign bonds, although he or she did not hold the required office on the date of issuance of the Bond. Section 11. Bond Reqistrar. The Bond Registrar shall keep, or cause to be kept, at its principal corporate trust office, sufficient books for the registration and transfer of the Bonds which shall be open to inspection by the City at all times. The Bond Registrar is authorized, on behalf of the City, to authenticate and deliver Bonds transferred or exchanged in accordance with the provisions of the Bonds and this ordinance, to serve as the City's paying agent for the Bonds and to carry out all of the Bond Registrar's powers and duties under this ordinance and City Ordinance No. 3862 establishing a system of registration for the City's bonds and obligations. The Bond Registrar shall be responsible for its representations contained in the Bond Registrar's Certificates 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 ~6.~ -8- the Bond Registrar and, to the extent permitted by law, may act as depository for and permit any of its officers or directors to act as members of, or in any other capacity with respect to, any committee formed to protect the rights of Bond owners. Section 12. Bonds Negotiable. The Bonds shall be negotiable instruments to the extent provided by RCW 62A.8-102 and 62A.8-105. Section 13. Preservation of Tax Exemption for Interest on Bonds. The City covenants that it will take all actions necessary to prevent interest on the Bonds from being included in gross income for federal income tax purposes, and it will neither take any action nor make or permit any use of proceeds of the Bonds or other funds of the City treated as proceeds of the Bonds at any time during the term of the Bonds which will cause interest on the Bonds to be included in gross income for federal income tax purposes. The City certifies that it has not been notified of any listing or proposed listing by the Internal Revenue Service to the effect that it is a bond issuer whose arbitrage certifications may not be relied upon. Section 14. Small Governmental Issuer Arbitraqe Rebate Exception and Desiqnation of Bonds as "Qualified Tax-Exempt Obligations." The City finds and declares that (a) it is a duly organized and existing governmental unit of the State of Washington and has general taxing power; (b) no Bond which is part of this issue of Bonds is a "private activity bond" within the meaning of Section 141 of the United States Internal Revenue Code of 1986, as amended (the "Code"); (c) at least 95% of the net proceeds of the Bonds will be used for local governmental activities of the City -9- (or of a governmental unit the jurisdiction of which is entirely within the jurisdiction of the City); (d) the aggregate face amount of all tax-exempt obligations (other than private activity bonds and other obligations not required to be included in such calculation) issued by the City and all entities subordinate to the City (including any entity which the City controls, which derives its authority to issue tax-exempt obligations from the City or which issues tax-exempt obligations on behalf of the City) during the ualendar year in which the Bonds are issued is not reasonably expected to exceed $5,000,000; and (e) the amount of tax-exempt obligations, including the Bonds, designated by the City as "qualified tax-exempt obligations" for the purposes of Section 265(b) (3) of the Code during the calendar year in which the Bonds are issued does not exceed $10,000,000. The City therefore certifies that the Bonds are eligible for the arbitrage rebate exception under Section 148(f)(4) (D) of the Code and designates the Bonds as "qualified tax-exempt obligations" for the purposes of Section 265(b) (3) of the Code. Sectio~ %5. Use of Bond Proceeds. The accrued interest on the Bonds received from the Bond purchaser shall be deposited in the Bond Fund and used to pay debt service on the Bonds on the first interest payment date. The principal proceeds of the Bonds shall be used to repay certain City funds used to carry out improvements in Local Improvement Districts Nos. 327 and 328, and to pay the costs of issuance of the Bonds. Until needed to pay those costs, the City may invest principal proceeds temporarily in any legal investment, and the investment earnings may be retained in the respective local improvement district funds or accounts therein and be spent for the purposes of those funds probably will be exempt from rebate this year. Sect~oD %6. Approval of Bond Purchase Contract. Bank of America NW, N.A., doing business as Seafirst Bank of Seattle, Washington, has presented a purchase contract (the "Bond Purchase Contract") to the City offering to purchase the Bonds under the terms and conditions provided in the Bond Purchase Contract, which written Bond Purchase Contract is on file with the City Clerk and is incorporated herein by this reference. The City Council finds that entering into the Bond Purchase Contract is in the City's best interest and therefore accepts the offer contained therein and authorizes its execution by City officials. The Bonds will be printed at city expense and will be delivered to the purchaser in accordance with the Bond Purchase Contract, with the approving legal opinion of Foster Pepper & Shefelman, municipal bond counsel of Seattle, Washington, regarding the Bonds printed on each definitive Bond. Bond counsel shall not be required to review and shall express no opinion concerning the completeness or accuracy of any official statement, offering circular or other sales material issued or used in connection with the Bonds, and bond counsel's opinion shall so state. The proper City officials are authorized and directed to do everything necessary for the prompt delivery of the Bonds to the purchaser, including without limitation the execution of the Official Statement on behalf of the City, and for the proper application and use of the proceeds of the sale thereof. section 17. Fixing Interest Rate on Assessments. The interest rate on the installments and delinquent payments of the special assessments in Local Improvement Districts Nos. 327 and 328 has been and is fixed at the rate of 8.2% per annum pursuant to Ordinances Nos. 4560 and 4559, respectively. Section 18. EFfective Date of Ordinance. This ordinance shall take effect ten days following its passage and publication. APPROVED by the City Council of the City of Bremerton, Washington, this 28th day of August, 1996. PASSED by the City Council of the City of Bremerton, Washington, this 4th day of September~.~~~ ~W, il President APPROVED this ~-day of September, 1996. L~~NNHO~TON, Mayor ATTEST: KAT~LEEN M~CLUSKEY/ City Clerk APPROVED AS TO FORM: George M. Mack, Bond Counsel Publication Date: ~- Ordinance Number: o7.32216.03 - 1 2 -