HomeMy WebLinkAbout4447 CITY OF BREMERTON, WASHINGTON
ORDINANCE NO.
AN ORDINANCE of the City of Bremerton, Washington,
relating to contracting indebtedness; providing for the
issuance of $295,000 par value Parking System Refunding
Revenue Bond, 1994, of the City to provide funds with
which to pay a part of the cost of refunding the City of
Bremerton's outstanding Parking Revenue Refunding Bonds,
Series 1976; fixing the date, form, maturity, interest
rates, terms and covenants of the bond; establishing a
bond redemption fUnd; providing for and authorizing the
purchase of certain obligations out of the proceeds of
the sale of the refunding bonds herein authorized and for
the use and application of the money derived from those
investments; and approving the sale and providing for the
delivery of the bond to the National Bank of Bremerton of
Bremerton, Washington.
WHEREAS, pursuant to Ordinance No. 3327 passed December 8,
1976, the City of Bremerton, Washington (the "City"), heretofore
issued its City of Bremerton Parking Revenue Refunding Bonds,
Series 1976 (the "1976 Bonds"), in the original principal amount of
$755,000 and by Section 4 of that ordinance the City reserved the
right and option to redeem the 1976 Bonds maturing on and after
November 1, 1987, on any interest payment date thereafter, at par
plus accrued interest to the date fixed for redemption; and
WHEREAS, there are presently outstanding $465,000 principal
amount of 1976 Bonds maturing on September 1 of each of the years
1994 through 2000, inclusive bearing interest at the rate of 7.25%
(the "Refunded Bonds"); and
WHEREAS, the City Council has determined that the Refunded
Bonds may be refunded by the issuance and sale of the parking
refunding revenue bond authorized herein (the "Bond") and other
City money so that a substantial saving will be effected by the
0099385.03
difference between the principal and interest costs over the life
of the Bond and the principal and interest costs over the life of
the outstanding Refunded Bonds but for such refunding, which
refunding will be effected by
(a) The issuance of the Bond; and
(b) The call, payment and redemption on March 1,
1994, of all the outstanding Refunded Bonds at a price of
par plus accrued interest to the date of redemption;
and
WHEREAS, to effect that refunding in the manner that will be
most advantageous to the City and its taxpayers, the City Council
finds it necessary and advisable that the principal proceeds of the
Bond be held and invested as provided hereinafter to accomplish the
refunding as aforesaid; and
WHEREAS, the City Council has determined that it is necessary
to issue and sell a $295,000 par value parking refunding revenue
bond to provide part of the funds necessary to refund the
Refunded Bonds, and the National Bank of Bremerton has offered to
purchase the Bond as a single bond under the terms and conditions
hereinafter set forth; NOW, THEREFORE,
THE CITY OF BREMERTON, WASHINGTON, DOES ORDAIN as follows:
Section 1. Definitions.
"Annual Debt Service" for the Bond or Future Parity Bonds for
any calendar year means all the interest, plus all principal
(except principal of Term Bonds due in any Term Bond Maturity
Year), plus all mandatory redemption and sinking fund installments
for that year, less all bond interest payable from the proceeds of
any such bonds in that year.
0099385.03
~2~
"Average Annual Debt Service" means, as of its date of
calculation, the sum of the Annual Debt Service for the remaining
calendar years to the last scheduled maturity of the applicable
issue or issues of bonds divided by the number of those years. For
purposes of computing the reserve requirement the estimated amount
of bonds to be redeemed prior to maturity may be taken into account
if required under federal arbitrage regulations.
"Bond Fund" means that special fund of the City known as the
Parking System Refunding Revenue Bond Fund created by this
ordinance for the payment of installments of principal of and
interest on the Bond and any Future Parity Bonds.
"Bond Register" means the registration books of the Bond
Registrar on which are recorded the name of the owner of the Bond.
"Bond Registrar" means the City Treasurer.
"Bond" means the $295,000 par value Parking System Refunding
Revenue Bond, 1994, authorized to be issued by this ordinance.
"City" means the City of Bremerton, Washington.
"Code" means the United States Internal Revenue Code of 1986,
as amended, and applicable regulations thereunder.
"Coverage Requirement" in any calendar year means an amount of
Net Revenue of the Parking System equal to at least 1.10 times the
Maximum Annual Debt Service on all bonds payable from the Bond
Fund, plus any additional amount necessary to make the required
reserve account deposits (including required reserve insurance
reimbursements but excluding reserve account deposits in connection
with any Future Parity Bonds to be made from the proceeds of those
Future Parity Bonds) in that year.
0099385.03
~3~
"City Treasurer" means the Treasurer of the City or the
successor officer.
"Future Parity Bonds" means any and all parking system revenue
bonds of the City issued after the date of the issuance of the
Bond, the payment of the principal of and interest on which
constitutes a charge or lien on the Gross Revenue of the Parking
System equal in rank with the charge and lien upon such revenue and
receipts required to be paid into the Revenue Fund to pay and
secure the payment of the principal of and interest on the Bond.
"Government Obligations" means direct obligations of or
obligations the principal of and interest on which are
unconditionally guaranteed by the United States of America.
"Gross Revenue of the Parking System" or "Gross Revenue" means
all of the earnings and revenues received by the City from the
operation of the Parking System, including but not limited to
(1) all fees, tolls, rates and rentals for parking and shop space;
(2) all gross revenues or funds derived by the City from any and
all street parking meters or other devices owned and controlled by
the City, including all rates, fees and charges made for parking on
public streets and ways within the city and collected by use of
parking meters or other devices but excluding fines levied for
violation of parking ordinances and regulations; (3) all other
charges received for or in connection with the use of the Parking
System; and (4) all earnings from the investment of money in the
Revenue Fund and the Bond Fund which earnings are deposited in the
Bond Fund or other fund of the Parking System. The following
revenues shall not constitute Gross Revenue of the Parking System:
0099385.03
~4~
government grants, proceeds from the sale of Parking System
property, City taxes collected by or through the Parking System,
principal proceeds of bonds or other obligations and earnings or
proceeds from any investments in a trust, defeasance or escrow fund
created to defease or refund Parking System obligations (until
commingled with other earnings and revenues of the Parking System)
or held in a special account for the purpose of paying a rebate to
the United States Government under the Code.
"Maintenance and Operation Expenses" means all necessary and
reasonable expenses of management, operation and repair of the
Parking System and any other expenses reasonably necessary to
maintain and preserve the Parking System in good repair and working
order, but does not include any depreciation or taxes levied or
imposed by the City or payments to the city in lieu of taxes, or
capital additions or capital replacements to the Parking System.
"Maximum Annual Debt Service" means, as of its date of
calculation, the maximum amount of Annual Debt Service that will
mature or come due in the current calendar year or any future year
on any outstanding Bond and Future Parity Bonds.
"Net Revenue of the Parking System" or "Net Revenue" means the
Gross Revenue of the Parking System less Maintenance and Operation
Expenses.
"Parking System" means the on-street parking meter and other
controlled curb parking spaces and the City-owned off-street
surface and garage parking facilities, including all shop spaces
and all related parking improvements.
0099385.03
"Revenue Fund" means the City of Bremerton Parking System
Revenue Fund previously created by Ordinance No. 2916 of the City,
passed October 21, 1970.
"Term Bond Maturity Year" means any calendar year in which
Term Bonds are scheduled to mature.
"Term Bonds" means bonds designated as such in the ordinance
authorizing the issuance and sale of those bonds.
Section 2. Authorization and Description of Bond. The City
shall borrow money on the credit of the City and issue a parking
refunding revenue bond evidencing that indebtedness in the amount
of $295,000 for the purpose of providing a part of the funds
required to call, pay and redeem on March 1, 1994, all of the
outstanding Refunded Bonds at a price of par plus accrued interest
to the date of redemption (the "Refunding Plan").
Section 3. Description of Bond. The Bond shall be designated
Parking System Refunding Revenue Bond, 1994; shall be dated the
date of its delivery to its initial purchaser; shall be numbered R-
i; shall bear interest at the rates set forth below (computed on
the basis of a 360-day year of twelve 30-day months), installments
of interest on the Bond shall be payable on March 1, 1994, and
semiannually thereafter on each succeeding September 1 and March 1;
and installments of principal shall be payable on March 1 on the
dates and in amounts and bear interest at the rates per annum as
follows:
0099385.03
6
Installment Principal
Payment Installment Interest
Dates Amounts Rates
1995 $85,000 3.50%
1996 85,000 3.75
1997 90,000 4.00
1998 35,000 4.25
Section 4. Reqistration and Transfer of Bond. The Bond shall
be issued only in registered form as to both principal and interest
and recorded on books or records maintained by the City Treasurer,
acting as Bond Registrar (the "Bond Register"). The Bond Register
shall contain the name and mailing address of the owner of the
Bond.
[The Bond may be transferred only in whole and only if
endorsed in the manner provided thereon and surrendered to the Bond
Registrar. Any transfer shall be without cost to the owner or
transferee and shall be noted in the Bond Register.]
Section 5. Payment of Bond. Installments of principal of and
interest on the Bond shall be payable in lawful money of the United
States of America and shall be paid by check or draft mailed by the
Bond Registrar mailed on the installment payment date to the
registered owner at the address appearing on the Bond Register,
except that the last installment of principal and interest shall be
payable upon presentation and surrender of the Bond by the
registered owner at the office of the Bond Registrar in Bremerton,
Washington. Thirty days following the surrender and payment in
full of the Bond, the Bond Registrar shall destroy the Bond and
furnish the City a Certificate of Destruction.
Section 6. Findinq as to Sufficiency of Revenue, Pledqe of
Revenue and Lien Position. The City Council finds and determines
~9355.03
--7--
that in fixing the amounts to be paid into the Bond Fund as
hereinbefore provided they have exercised due regard for
Maintenance and Operation Expenses and have not obligated the City
to set aside and pay into the Bond Fund a greater amount of Gross
Revenue of the Parking System than in its judgment will be
available over and above such Maintenance and Operation Expenses.
The Net Revenue of the Parking System is pledged to the
payment of the Bond and any Future Parity Bonds, and the Bond and
those Future Parity Bonds, if any, shall constitute a lien and
charge upon such Net Revenue prior and superior to any other liens
and charges whatsoever, except for the lien and charge on that Net
Revenue of the Refunded Bonds; full payment of the principal of and
interest on which is provided by this ordinance.
Section 7. Bond Fund. There is created and established in
the office of the City Treasurer a special fund designated as the
Parking Refunding Revenue Bond Fund, 1994 (the "Bond Fund"). So
long as any portion of the Bond is outstanding against the Bond
Fund, the City shall set aside and pay into the Bond Fund on or
before each interest or principal and interest payment date of the
Bond out of the Net Revenue of the Parking System an amount
sufficient to pay each installment of principal of and interest
when due. The City may create a reserve account in the Bond Fund
to secure the payment of the Bond and Future Parity Bonds.
The City may provide for the purchase, redemption or
defeasance of bonds payable from the Bond Fund by the use of money
on deposit in any account in the Bond Fund as long as the money
remaining in those accounts is sufficient to satisfy the required
0099385.03
deposits in those accounts for the remaining bonds outstanding
payable from the Bond Fund.
All money in the Bond Fund may be kept in cash or invested in
legal investments maturing not later than the date when the funds
are required for the payment of principal of or interest on the
outstanding bonds payable from the Bond Fund or having a guaranteed
redemption price prior to maturity and, in no event, maturing later
than the last maturity of any remaining outstanding bonds payable
from the Bond Fund.
The City may create sinking fund accounts or other accounts or
subaccounts in the Bond Fund for the payment or securing the
payment of bonds payable from the Bond Fund as long as the
maintenance of such accounts does not conflict with the rights of
the owners of bonds payable from the Bond Fund.
If the City fails to set aside and pay into the Bond Fund the
amounts set forth above, the owner of any of the outstanding bonds
payable out of the Bond Fund may bring action against the City and
compel such setting aside and payment. All Net Revenue of the
Parking System collected for and allocated to the payment of
installments of principal of and interest on the Bond shall be
deposited in the Bond Fund.
Section 8. Deposit of Bond Proceeds. Accrued interest on the
Bond, if any, received from the sale and delivery of the Bond shall
be paid into the Bond Fund. All principal proceeds of the Bond
received from the Purchaser, investment earnings thereon, $100,000
from the Parking Revenue Bond Reserve Account and approximately
$90,500 from funds available in the Revenue Fund shall be used to
0099385.03
~9~
carry out the refunding, and until used to redeem the Refunded
Bonds, the City Treasurer shall serve as trustee for the
application of such money to the refunding and shall invest the
principal proceeds and other money used to carry out the Refunding
Plan in any legal investment with the call date of the Refunded
Bonds. Investment earnings not needed to carry out the refunding
shall be deposited in the Bond Fund and used to pay interest on the
Bond on the first installment interest payment date.
Section 9. Call for Redemption of the Refunded Bonds. The
City calls for redemption on March 1, 1994, all of the Refunded
Bonds at par plus accrued interest. Such call for redemption shall
be irrevocable after the delivery of the Bond to the initial
purchaser thereof. The date on which the Refunded Bonds are called
for redemption is the earliest date on which those Refunded Bonds
may be called for redemption.
The City Council ratifies, approves and confirms the giving of
notices of such call at the times and in the manner required by
Ordinance No. 3327 in order to effect the redemption prior to their
maturities of the Refunded Bonds.
Section 10. City Findings with ResDect to Refunding. The
City Council finds and determines that the issuance and sale of the
Bond at this time will effect a saving to the City and its
taxpayers and is in the best interest of the City and in the public
interest. In making such finding and determination, the City
Council has given consideration to the fixed maturity of the Bond
and the Refunded Bonds, and the known earned income from the
investment of the proceeds of the issuance and s~le of the Bond and
0099385.03
-10-
other money of the City used in the Refunding Plan pending payment
and redemption of the Refunded Bonds.
The City Council further finds and determines that the money
to be deposited in the bond redemption fund for the Refunded Bonds
in accordance with Section 7 of this ordinance, together with known
earned income from the investments thereof, will be sufficient to
carry out the Refunding Plan and discharge and satisfy the
obligations of the City under Ordinance No. 3327 with respect to
the Refunded Bonds and the pledges, charges, trusts, covenants and
agreements of the City therein made or provided for as to the
Refunded Bonds and that the Refunded Bonds shall no longer be
deemed to be outstanding under such ordinance immediately upon the
deposit of such money into the Bond Fund.
Section 11. Covenants. The City covenants and agrees with
the owner of the Bond at any time outstanding, as follows:
(a) Maintenance and Operation. It will at all
times maintain, preserve and keep the Parking System in
good repair, working order and condition, will make all
necessary and proper additions, betterments, renewals and
repairs thereto, and improvements, replacements and
extensions thereof, and will at all times operate or
cause to be operated the Parking System and the business
in connection therewith in an efficient manner and at a
reasonable cost.
(b) Establishment and Collection of Rates and
Charqes. It will establish, maintain and collect fees,
tolls, rates, rentals and other charges for the use of
the Parking System which will be fair and
nondiscriminatory, and will adjust those rates and
charges from time to time so that:
(1) The Gross Revenue of the Parking System
will at all times be sufficient to (i) pay all
Maintenance and Operation Expenses on a current
basis, (ii) pay when due all amounts that the City
is obligated to pay into the Bond Fund and the
accounts therein, (iii) pay all taxes, assessments
or other governmental charges lawfully imposed on
0099385.03
the Parking System or the revenue therefrom or
payments in lieu thereof and any and all other
amounts which the City may now or hereafter become
obligated to pay from the Gross Revenue of the
Parking System by law or contract; and
(2) The Net Revenue of the Parking System in
each calendar year will be at least equal to the
Coverage Requirement.
(c) Sale or Disposition of the Parking System. It
will not sell or otherwise dispose of the Parking System
in its entirety unless, simultaneously with such sale or
other disposition, all Bond and any Future Parity Bonds
are redeemed and retired, or defeased under Section 18 of
this ordinance.
Except for leases or rentals of parking spaces, shop
spaces and other parking facilities in the ordinary
course of the city's operation of the Parking System, it
will not sell, lease, mortgage or in any manner encumber
or otherwise dispose of any part of the Parking System,
including all additions and improvements thereto and
extensions thereof at any time made, that are used,
useful or material in the operation of the Parking
System, unless provision is made for the replacement
thereof or for payment into the Bond Fund of the greatest
of the following:
(1) An amount which will be in the same
proportion to the net debt service on the Bond and
any Future Parity Bonds then outstanding (defined
as the total amount of those bonds less the amount
of cash and investments in the Bond Fund and
accounts therein) that the Gross Revenue of the
Parking System from the portion of the Parking
System sold or disposed of for the preceding year
bears to the total Gross Revenue of the Parking
System for that period; or
(2) An amount which will be in the same
proportion to the net debt service on the Bond and
any Future Parity Bonds then outstanding (as
defined above) that the Net Revenue from the
portion of the Parking System sold or disposed of
for the preceding year bears to the total Net
Revenue of the Parking System for such period; or
(3) An amount which will be in the same
proportion to the net debt service on the Bond and
any Future Parity Bonds then outstanding (as
defined above) that the depreciated cost value of
the facilities sold or disposed of bears to the
0099385.03
-].2-
depreciated cost value of the entire Parking System
immediately prior to such sale or disposition.
Notwithstanding any other provision of this
subsection (d), (1) the City in its discretion may sell
or otherwise dispose of any of the properties or
facilities of the Parking System or any real or personal
property comprising a part of the same which shall have
become unserviceable, inadequate, obsolete or unfit to be
used in the operation of the Parking System, or no longer
necessary, material to or useful to the operation of the
Parking System, without making any deposit into the Bond
Fund, and (2) the City may transfer the Parking System to
another municipal corporation so long as the Net Revenue
of the portion of the Parking System so transferred is
used for payment of debt service on the Bond and any
Future Parity Bonds prior to any other purpose.
(d) No Free Service. Except for promotional or
other such purposes on certain occasions, it will not
furnish off-street parking to any customer whatsoever
free of charge.
(e) On-Street Parkinq Covenants. It will at all
times establish, maintain and enforce on-street parking
regulations designating the places at which street
parking meters or other devices are to be located and
relating to parking at such places, will install parking
meters or other devices in all streets or portions
thereof within the City as to which such regulations
apply, will maintain all such parking meters or other
devices in good operating condition and will replace such
parking meters or other devices as are required. It will
collect parking meter fees on all streets or portions
thereof within the City as to which the aforementioned
regulations apply and on which such parking meters or
other devices are so installed. Nothing in this
ordinance shall be construed to prohibit or prevent the
installation of new parking meters or other devices in
places where parking meters or other devices are not now
located nor to prohibit or prevent the removal or
relocation of any parking meters or other devices now or
hereafter installed when such removal or relocation is
made necessary by reason of public safety or convenience,
by reason of street widening or street closing or by
reason of traffic control.
(f) Liens Upon the Parkinq System. It will not at
any time create or permit to accrue or to exist any lien
or other encumbrance or indebtedness upon the Gross
Revenue of the Parking System, or any part thereof, prior
or superior to the lien thereon for the payment of the
Bond and any Future Parity Bonds, except to the extent
that any special assessments levied by the City against
0099385.03
Parking System property shall constitute a claim on the
Gross Revenue of the Parking System, and will pay and
discharge, or cause to be paid and discharged, any and
all lawful claims for labor, materials or supplies which,
if unpaid, might become a lien or charge upon the Gross
Revenue of the Parking System, or any part thereof, prior
to or superior to the lien of the Bond and any Future
Parity Bonds, or which might impair the security of the
Bond and any Future Parity Bonds.
(g) Books and Accounts. It will keep proper books,
records and accounts with respect to the operations,
income and expenditures of the Parking System in
accordance with proper accounting procedures and any
applicable rules and regulations prescribed by the State
of Washington. It will prepare annual financial and
operating statements within 180 days of the close of each
fiscal year showing in reasonable detail the financial
condition of the Parking System as of the close of the
previous year, and the income and expenses for such year,
including the amounts paid into the Bond Fund and into
any and all special funds or accounts created pursuant to
the provisions of this ordinance, the status of all funds
and accounts as of the end of such year, and the amounts
expended for maintenance, .renewals, replacements and
capital additions to the Parking System. Such statements
shall be sent to the owner of any Bond or Future Parity
Bonds upon written request therefor being made to the
City.
(h) Fire and Extended Coveraqe Insurance. It at
all times will carry fire and extended coverage and such
other forms of insurance with responsible insurers and
with policies payable to the City on such of the
buildings, equipment, facilities and properties of the
Parking System as are ordinarily carried by municipal or
privately owned businesses engaged in the operation of
like parking systems, or will implement and maintain a
self-insurance or an insurance pool program with reserves
adequate, in the reasonable judgment of the City, to
protect the Parking System and the owners of the Bond and
any Future Parity Bonds against loss.
(i) Public Liability and Property Damage Insurance.
It at all times will keep or arrange to keep in full
force and effect such policies of public liability and
property damage insurance with responsible insurers and
with policies payable to the City against such claims for
damages as are ordinarily carried by municipal or
privately owned businesses engaged in the operation of
like parking systems, or will implement and maintain a
self-insurance or an insurance pool program with reserves
adequate, in the reasonable judgment of the City Council,
0099385.03
to protect the Parking System and the owners of the Bond
and any Future Parity Bonds against loss.
Section 12. Revenue Fund; Flow of Funds. All Gross Revenue
shall be paid into the Revenue Fund. The City shall maintain the
Revenue Fund in the office of the City Treasurer for so long as any
Bond or Future Parity Bonds are outstanding. Money on deposit in
the Revenue Fund shall be used for the following purposes only in
the following order of priority:
(a) To pay Maintenance and Operation EXpenses;
(b) To pay installments of principal of and
interest on the Bond and any Future Parity Bonds when due
or as the principal is required to be paid and to make
all payments required to be made for any mandatory
redemption or into a sinking fund account created to
provide for the payment of the principal of Term Bonds;
(c) To make all payments required to be made into
any revenue bond, note, warrant or other revenue
obligation redemption fund, debt service account or
reserve account created to pay or secure the payment of
the principal of and interest on any revenue bonds,
notes, warrants or other obligations of the City having
a lien upon the Gross Revenue of the Parking System
subordinate to the lien thereon for the payment of the
principal of and interest on the Bond and any Future
Parity Bonds; and
(d) For any other lawful purpose of the City,
including but not limited to the purchase on the open
market of any Future Parity Bonds, the acquisition or
construction of additions or improvements to the Parking
System and acquisition of parking meters or other devices
for on-street parking.
The City may transfer any money from any funds or accounts of
the Parking System legally available therefor, except bond
redemption funds, refunding escrow funds, defeasance or other trust
funds, to meet the required payments to be made into the Bond Fund.
Section 13. Provisions for Future Parity Bonds. The City
reserves the right to issue Future Parity Bonds if the following
0099385.03
-3.5-
conditions are met and complied with at the time of the issuance of
those Future Parity Bonds:
(a) There shall be no deficiency in the Bond Fund.
(b) The ordinance providing for the issuance of
those Future Parity Bonds shall provide for the payment
of the principal thereof and interest thereon out of the
Bond Fund.
[(c) The ordinance providing for the issuance of
such Future Parity Bonds shall provide for the deposit
into a reserve account or a subac¢ount therein of an
amount, together with the funds and/or reserve insurance
then deposited in the ~reserve account, equal to the
reserve requirement, if any, for the bonds payable from
the Bond Fund (i) from the proceeds of the Future Parity
Bonds or other money legally available, (ii) from the
provision of reserve insurance or a combination of money
and reserve insurance, or (iii) to the extent that the
reserve requirement is not funded as described above at
the time of issuance of those Future Parity Bonds, then
within five years from the date of issue of the Future
Parity Bonds from the Net Revenue of the Parking System
in five approximately equal annual payments. No reserve
insurance may be used to satisfy the reserve requirement
unless (i) the reserve insurance is non-cancelable and
(ii) the provider of the reserve insurance as of the time
of issuance of such reserve insurance is rated in the
highest rating categories by both Moody's Investors
Service, Inc., and Standard & Poor's Corporation.
(d) The ordinance authorizing the issuance of such
Future Parity Bonds shall provide for the payment of
mandatory redemption or sinking fund requirements into
the Bond Fund for any Term Bonds to be issued and for
regular payments to be made for the payment of the
principal of such Term Bonds on or before their maturity,
or, as an alternative, the mandatory redemption of those
Term Bonds prior and up to their maturity date from money
in the Bond Fund.
(e) There shall be on file from the City Treasurer
a certificate showing that in his or her opinion, based
on the prior fiscal year, the Net Revenue of the Parking
System shall be equal to the Coverage Requirement for
each year thereafter. The certificate, in estimating the
Net Revenue available for debt service, may adjust the
Net Revenue to reflect:
(1) Any changes in parking and meter
rates in effect and being charged or expressly
0099385.03
-16-
committed by ordinance to be made in the
future;
(2) Any increases or decreases in Net
Revenue as a result of any actual or
reasonably anticipated changes in Maintenance
and Operation Expense subsequent to the
12-month period; and
If Future Parity Bonds proposed to be so issued are
for the sole purpose of refunding outstanding bonds
payable from the Bond Fund, such certification of
coverage shall not be required if the amount required for
the payment of the principal and interest in each year
for the refunding bonds is not increased more than $5,000
over the amount for that same year required for the bonds
or the portion of that bond issue to be refunded thereby
and if the maturities of such refunding bonds are not
extended beyond the maturities of the bonds to be
refunded thereby.
Nothing contained herein shall prevent the City from issuing
Future Parity Bonds to refund maturing Bond or other Future Parity
Bonds then outstanding, money for the payment of which is not
otherwise available.
Nothing contained herein shall prevent the City from issuing
revenue bonds or other obligations that are a charge upon the Gross
Revenue of the Parking System subordinate to the payments required
to be made therefrom into the Bond Fund for the payment of the Bond
and-any Future Parity Bonds.
Section 14. Preservation of Tax Exemption for Interest on
Bond. The City covenants that it will take all actions necessary
to prevent interest on the Bond 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 Bond or other
funds of the City treated as proceeds of the Bond at any time
during the term of the Bond which will cause interest on the Bond
to be included in gross income for federal income tax purposes.
0099385.03
-'17-
The City also covenants that, to the extent arbitrage rebate
requirements of Section 148 of the Code are applicable to the Bond,
it will take all actions necessary to comply (or to be treated as
having complied) with those requirements in connection with the
Bond, including the calculation and payment of any penalties that
the City has elected to pay as an alternative to calculating
rebatable arbitrage, and the payment of any other penalties if
required under Section 148 of the Code to prevent interest on the
Bond from being 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 15. Designation of Bonds as "Qualified Tax-Exempt
Obliqations." The City has determined and certifies that (a) the
Bonds are not "private activity bonds" within the meaning of
Section 141 of the Code; (b) the reasonably anticipated amount of
tax-exempt obligations (required to be included in this
calculation) (other than private activity bonds) which the City and
any entity 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) will issue during the calendar year in which
the Bond is issued will not exceed $10,000,000; and (c) the amount
of tax-exempt obligations (required to be included in this
calculation), including the Bond, designated by the City as
"qualified tax-exempt obligations" for the purposes of
0099385.03
Section 265(b) (3) of the Code during the calendar year in which the
Bond is issued does not exceed $10,000,000. The City designates
the Bond as a "qualified tax-exempt obligation" for the purposes of
Section 265(b) (3) of the Code.
Section 16. Bond Negotiable. The Bond shall be a negotiable
instrument to the extent provided by RCW 62A.8-102 and 62A.8-105.
Section 17. Form and Execution of Bond. The Bond shall be
printed or lithographed on good bond paper in a form consistent
with the provisions of this ordinance and state law, shall be
signed by the Mayor and City Treasurer, 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 Bond 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 the fully registered City of Bremerton,
Washington, Parking System Refunding Revenue Bond, 1994,
described in the Bond Ordinance.
By
City Treasurer, Bond Registrar
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.
0099385.03
If any officer whose facsimile signature appears on the Bond
ceases to be an officer of the City authorized to sign bonds before
the Bond bearing his or her facsimile signature is authenticated or
delivered by the Bond Registrar or issued by the City, the Bond
nevertheless may be authenticated, delivered and issued 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 18. Bond Reqistrar. The Bond Registrar shall keep,
or cause to be kept, at its principal office, sufficient books for
the registration and transfer of the Bond 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 the
Bond transferred in accordance with the provisions of the Bond and
this ordinance, to serve as the City's paying agent for the Bond
and to carry out all of the B6nd Registrar's powers and duties
under this ordinance.
The Bond Registrar shall be responsible for its
representations contained in the Bond Registrar's Certificate of
Authentication on the Bond.
Section 19. Advance Refundinq or Defeasance of the Bond. The
City may issue refunding bonds pursuant to the laws of the State of
Washington or use money available from any other lawful source to
0099385.03
-20-
pay the principal of and interest on the Bond, or such 'portion
thereof included in a refunding or defeasance plan, as the same
become due and payable and to redeem and retire, release, refund or
defease the Bond (hereinafter collectively called the "defeased
Bond") and to pay the costs of such refunding or defeasance. In
the event that money and/or Government Obligations sufficient in
amount, together with known earned income from the investments
thereof, to redeem and retire, release, refund or defease the
defeased Bond in accordance with its terms, are set aside
irrevocably in a special fund for and pledged irrevocably to such
redemption, retirement or defeasance (hereinafter called the "trust
account"), then all right and interest of the owners of the
defeased Bond in the covenants of this ordinance and in the Gross
Revenue of the Parking System, funds and accounts obligated to the
payment of such defeased Bond, other than the right to receive the
funds so set aside and pledged, thereafter shall cease and become
void. Such owners thereafter shall have the right to receive
payment of the principal of and interest on the'defeased Bond only
from the trust account.
After the establishing and full funding of such a trust
account, the City then may apply any money in any other fund or
account established for the payment or redemption of the defeased
Bond to any lawful purposes as it shall determine, subject only to
the rights of the owners of any bonds then outstanding.
In the event that the refunding plan provides that the
defeased Bond or the refunding bonds to be issued be secured by
money and/or Government Obligations pending the prior redemption of
0099385.03
-21-
the defeased Bond and if such refunding plan also provides that
certain money and/or Government Obligations are pledged irrevocably
for the prior redemption of the defeased Bond included in that
refunding plan, then only the debt service on the Bond which are
not defeased Bond and the refunding bonds, the payment of which is
not so secured by the refunding plan, shall be included in the
computation of the coverage requirement for the issuance of Future
Parity Bonds and the annual computation of coverage for determining
compliance with the rate covenants.
Section 20. Sale and Delivery of Bond. The Purchaser has
offered to purchase the Bond at a price of par plus accrued
interest to the date of delivery of the Bond, the City to furnish
the typewritten Bond and the approving legal opinion of Foster
Pepper & Shefelman, municipal bond counsel of Seattle, Washington,
relative to the issuance of the Bond, at the City's expense. Bond
counsel shall not be required to review or express any opinion
concerning the completeness or accuracy of any official statement,
offering circular or other sales material issued or used in
connection with the Bond and bond counsel's opinion shall so state.
The City Council being of the opinion that it is in the best
interest of the City to accept such offer, accepts the same.
The proper City officials are authorized and directed to do
everything necessary for the prompt delivery of the Bond to the
Purchaser and for the proper application and use of the proceeds of
the sale thereof.
Section 21. Effective Date of Ordinance. For the reason that
is necessary that the City obtain the proceeds of sale of the
0099385.03
-22-
Refunding Bonds as soon as possible in order to invest such
proceeds and maximize the savings to the City from the refunding
operation, an emergency is hereby declared to exist and is hereby
found necessary for the public health, welfare and safety that this
ordinance become effective immediately upon its passage, approval
and publication.
Passed unanimously by the City Council of the city of
Bremerton, Washington, at a regular open public meeting thereof,
this 26th day of January, 1994.
EILEEN FITZ, c~un~cil President
APPROVED this \%~ day of~ , ~99~.
B¥~ HORTO~ ~avor
ATTEST:
KATHLEEN McCLUSKEY, city~lerk
0099385.03
-23-
I, KATHLEEN McCLUSKEY, Clerk of the City of Bremerton,
Washington, certify that the attached copy of Ordinance No.~~
is a true and correct copy of the original ordinance passed on the
26th day of January, 1994, as such ordinance appears on the Minute
Book of the city.
DATED this _~ day of January, 1994.
KATHLEEN McCLUSKEY, city~lerk
0099385.03