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HomeMy WebLinkAbout4499 ORDINANCE NO. 4499 AN ORDINANCE OF THE CITY OF BREMERTON, WASHINGTON, RELATING TO LOCAL IMPROVEMENT DISTRICT NO. 326; FIXING THE AMOUNT, FORM, DATE, INTEREST RATES, MATURITY AND DENOMINATIONS OF THE LOCALIMPROVEMENT DISTRICT NO. 326 BONDS; PROVIDING FOR THE SALE AND DELIVERY THEREOF TO DAIN BOSWORTH INCORPORATED IN SEATTLE, WASHINGTON; FIXING AND REAFFIRMING THE INTEREST RATE ON LOCAL IMPROVEMENT DISTRICT NO. 326 ASSESSMENT INSTALLMENTS; AND PROVIDING THAT THIS ORDINANCE WILL TAKE EFFECT IMMEDIATELY. THE CITY OF BREMERTON DOES ORDAIN as follows: Section 1. Authorization and Description of Bonds. The total amount of the assessment roll in Local Improvement District No. 326 in the City of Bremerton, Washington (the "City"), created under Ordinance No. 4419, passed June 2, 1993, was $388,999.96. The 30-day period for making cash payments of assessments without interest in the District expired on December 20, 1994, and the total amount of assessments paid in cash (including a payment to be made on an assessment against city property) was $140,660.15, leaving a balance of assessments unpaid on the assessment roll in the sum of $248,339.81. Local Improvement District No. 326 Bonds (the "Bonds") shall, therefore, be issued in the total principal sum of $248,339.81. The Bonds shall be dated February 1, 1995, shall mature on February 1, 2015, and shall be numbered from 1 to 49, 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 $8,339.81 and Bonds Nos. 2 to 49, inclusive, shall be in the denomination of $5,000.00 each. 0163399.02 be computed on the basis of a 360-day year of twelve The Bonds shall bear interest, payable annually February 1, 1996, to the date of maturity of the Bonds or redemption date each year in accordance with the following Bond Numbers Interest (inclusive) Amounts Rates 1 $ 8,339.81 5.40% 2 to 3 10,000.00 5.80 4 to 5 10,000.00 6.10 6 to 7 10,000.00 6.25 8 to 9 10,000.00 6.40 10 to 11 10,000.00 6.55 12 to 13 10,000.00 6.70 14 to 15 10,000.00 6.80 16 to 17 10,000.00 6.90 18 to 20 15,000.00 7.00 21 to 23 15,000.00 7.05 24 to 26 15,000.00 7.15 27 to 29 15,000.00 7.20 30 to 36 35,000.00 7.25 37 to 44 40,000.00 7.30 45 to 49 25,000.00 7.35 Reqistration and Transfer of Bonds. The Bonds issued only in registered form as to both principal and shall be recorded on books or records maintained by Registrar (the "Bond Register"). Such Bond Register shall name and mailing address of the owner of each Bond and amount and number of each of the Bonds held by each be transferred only if endorsed in the manner thereon and surrendered to the Bond Registrar. The Bond shall be by the Bond Registrar's receiving the transferred, cancelling it and issuing a new certificate 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. Section 3. Payment of Bonds. Both principal of and interest on the Bonds shall be payable solely out of the Local Improvement Fund, District No. 326 (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. Section 4. 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 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 on'all unpaid Bonds. 0163399.02 -3- Ail Bonds redeemed under this section shall be cancelled. Section 5. 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 Dain Bosworth Incorporated 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. Section 6. Failure to Redeem 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 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. 0163399.02 --4~ Section 7. 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, Local Improvement District No. 326 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. 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 01633~.~ --5-- 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 8. Bond Registrar. 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. 1608 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 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 9. Bonds Negotiable. The Bonds shall be-negotiable instruments to the extent provided by RCW 62A.8-102 and 62A.8-105. 0163399.02 --6-- Section 10. 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 11. Small Governmental Issuer Arbitrage Rebat~ Exception and Designation 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 (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 0163399.02 -7- its authority to issue tax-exempt obligations from the City or which issues tax-exempt obligations on behalf of the City) during the calendar 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. Section 12. Approval of Bond Purchase Contract. Dain Bosworth Incorporated 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 0163399.02 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 13. Temporary Bond. Pending the printing, execution and delivery to the purchaser of definitive Bonds, the City may cause to be executed and delivered to the purchaser a single temporary Bond in the total principal amount of the Bonds. The temporary Bond shall bear the same date of issuance, interest rates, principal payment dates and terms and covenants as the definitive Bonds, shall be issued as a fully registered Bond in the name of the purchaser, and otherwise shall be in a form acceptable to the purchaser. The temporary Bond shall be exchanged for definitive Bonds as soon as they are printed, executed and available for delivery. Section 14. Fixing Interest Rate on Assessments. The interest rate on the installments and delinquent payments of the special assessments previously fixed at 8.2% by Ordinance No. 4490 is reaffirmed and fixed at 8.2%. Section 15. Effective Date of Ordinance. The City is in urgent need of financing for the improvements in Local Improvement District No. 326 and has been advised that a favorable market 0163399.02 ~9~ exists at this time for the sale of the Bonds resulting in lower interest rates on the Bonds and a savings to the City. Therefore, the City Council finds that sufficient urgency exists to require that this ordinance take effect immediately upon its passage and publication. PASSED UNANIMOUSLY by the City Council of the City of Bremerton, Washington, this 18th day of January, 1995. HU F ES, Council Pres-id6nt APPROVED this {~ day of January, 1995. L~NN HORTON, Mayor ATTEST: KATHLEEN McCLUSK~Y, City Clerk APPROVED AS TO FORM: Publication Date: /-~/- ~Q- Ordinance Number: ~~ 0163399.02 I, KATHLEEN L. McCLUSKEY, City Clerk of the City of Bremerton, Washington, certify that the attached copy of Ordinance No. 4499 is a true and correct copy of the original ordinance passed on the 18th day of January, 1995, as that ordinance appears on the Minute Book of the City. DATED this'~/~-%fday of January, 1995. Ka~hleen L. McCl~skey City Clerk 0163399.02 CITY OF BREMERTON ORDINANCE NO. 4499 AN ORDINANCE OF THE CITY OF BREMERTON, WASHINGTON, RELATING TO LOCAL IMPROVEMENT DISTRICT NO. 326; FIXING THE AMOUNT, FORM, DATE, INTEREST RATES, MATURITY AND DENOMINATIONS OF THE LOCAL IMPROVEMENT DISTRICT NO. 326 BONDS; PROVIDING FOR THE SALE AND DELIVERY THEREOF TO DAIN BOSWORTH INCORPORATED IN SEATTLE, WASHINGTON; FIXING AND REAFFIRMING THE INTERESTRATE ON LOCAL IMPROVEMENT DISTRICT NO. 326 ASSESSMENT INSTALLMENTS; AND PROVIDING THAT THIS ORDINANCE WILL TAKE EFFECT IMMEDIATELY. PASSED UNANIMOUSLY JANUARY 18, 1995. PUSLICATION DATES/-,~/-.~'~-_ NO. OF INSERTIONS ,/ - NO. AFFIDAVITS REQ'D ~