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HomeMy WebLinkAbout4432 ORDINANCE NO. ~/~/?~ AN ORDINANCE OF THE CITY OF BREMERTON, WASHINGTON, RELATING TO THE LOCAL IMPROVEMENT DISTRICT NO. 326; PROVIDING FOR LOCAL IMPROVEMENT DISTRICT BONDS; AUTHORIZING THE ISSUANCE AND SALE OF LOCAL IMPROVEMENT DISTRICT BOND ANTICIPATION NOTES PENDING THE RECEIPT OF THE PROCEEDS OF THE LOCAL IMPROVEMENT DISTRICT BONDS AND ASSESSMENT COLLECTIONS; AND PROVIDING FOR THE SALE OF SUCH BOND ANTICIPATION NOTES TO THE NATIONAL BANK OF BREMERTON, WASHINGTON. WHEREAS, by Ordinance No. 4419 passed by the City Council on June 2, 1993, and approved by the Mayor on June 8, 1993, the City ordered the construction and installation of certain improvements on 4th Street from Washington Avenue to Pacific Avenue, all pursuant to Resolution No. 2430, and, after a public hearing thereon, established Local Improvement District No. 326 (the "District"), estimated the cost of the improvements to be $389,000, provided that payment for the improvement be made by special assessments upon the property in the local improvement district and other money available therefor; and WHEREAS, the City Council deems it to be in the best interests of the City that the City borrow money and issue its short-term obligations in the form of bond anticipation notes for the purpose of providing the funds with which to pay part of the costs of carrying out the improvements ordered in Local Improvement District No. 326 pending the collection of assessments and the receipt of Local Improvement District bond proceeds; and WHEREAS, the National Bank of Bremerton, Washington, has submitted an offer to purchase such short term bond anticipation 8~1. notes on the terms and conditions hereinafter set forth; NOW THEREFORE, THE CITY OF BREMERTON DOES ORDAIN as follows: Section 1. Bonds Authorized. The City is authorized to issue local improvement district bonds for the District which shall bear interest at a rate and be payable on or before a date to be hereafter fixed by ordinance. The bonds shall be issued in exchange for and/or in redemption of any and all bond anticipation notes authorized by this ordinance and not redeemed in cash within twenty days after the expiration of the thirty-day period for the cash payment without interest of assessments on the assessment roll for the District. The bonds shall be redeemed by the collection of special assessments to be levied and assessed against the property within the District, payable in annual installments, with interest at a rate to be hereafter fixed by ordinance under the mode of "payment by bonds," as defined by law and the ordinances of the City. The exact form, amount, date, interest rate and denominations of such bonds hereafter shall be fixed by ordinance of the City Council. Such bonds shall be sold in such manner as the City Council hereafter shall determine. Section 2. Local Improvement Fund Created. The Local Improvement Fund, District No. 326, is created and established in the office of the City Treasurer. The proceeds from the sale of the bond anticipation notes authorized by this ordinance and the collections of special assessments, interest and penalties thereon shall be deposited in the Local Improvement Fund. Cash warrants or checks to the contractor or contractors in payment for the work to --2-- be done by them in connection with the improvement and cash warrants or checks in payment for all other items of expense in connection with the improvement shall be issued against the Local Improvement Fund. Section 3. Description of Note. A local improvement district bond anticipation note of the District (the "Note") shall be issued in the principal amount of $389,000 to pay all or part of the cost and expense of carrying out the improvements in Local Improvement District No. 326 and to pay the costs of issuing and selling the Note. The Note shall be in fully registered form; shall be dated September 1, 1993; shall mature on April , 1, 1994; shall be in the denomination of $389,000; shall be numbered 1 with any additional designation as the Bond Registrar (the City Treasurer) deems necessary for purposes of identification; and shall bear interest at the rate of 3.5 % per annum (computed on the basis of a 360-day year of twelve 30-day months), payable at maturity. The City Council finds that the fixing of the above interest rate is in the best interest of the City. Section 4. Reqistration and Transfer of Note. The Note shall be issued only in registered form as to both principal and interest and 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 owner of the Note and the principal amount and number of the Note held by the owner. The Note surrendered to the Note Registrar may be exchanged for another Note in the authorized denomination. The Note may be transferred only if endorsed in the manner provided thereon and 88451. ~3~ surrendered to the Note Registrar. Any exchange or transfer shall be without cost to the owner or transferee. The Note Registrar shall not be obligated to exchange or transfer the Note during the fifteen days preceding the maturity date of the Note. Section 5. Payment of Note. Both principal of and interest on the Note shall be payable in lawful money of the United States of America solely out of the Local Improvement Fund, District No. 326 (the "Note Fund"), from the proceeds of local improvement district bonds authorized to be issued by this ordinance, other short-term obligations to be deposited in the Note Fund and prepaid special benefit assessments deposited in that fund, and from the Local Improvement Guaranty Fund of the City. Interest on the Note may be paid from Note proceeds. Principal and interest of the Note shall be payable upon presentation and surrender of the Note by the registered owner of the office of the Bond Registrar. Section 6. Optional Redemption. The Note shall be issued with the right or option of the City to redeem the Note prior to its maturity date by the City's giving the registered owner ten day's written notice of such redemption stating the redemption date. Section 7. Failure to Redeem Note. If the Note is not redeemed when properly presented at its maturity or call date, the City shall be obligated to pay interest on that Note at the same rate provided in the Note from and after its maturity or call date until that Note, both principal and interest, is paid in full or until sufficient money for its payment in full is on deposit in the $g451. Note Fund and the Note has been called for payment by giving notice of that call to the registered owner. Section 8. Form and Execution of Note. The Note shall be typed, 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 Clerk, and the seal of the City or a facsimile reproduction thereof shall be impressed or printed thereon. The Note must bear a Certificate of Authentication in the following form, manually signed by the Note Registrar, to be valid or obligatory for any purpose or entitled to the benefits of this ordinance: CERTIFICATE OF AUTHENTICATION This note is one of the fully registered City of Bremerton, Washington, Local Improvements District No. 326 Bond Anticipation Note described in the Note Ordinance. Note Registrar By City Treasurer The authorized signing of a Certificate of Authentication shall be conclusive evidence that the Note 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 Note ceases to be an officer of the City authorized to sign note before the Note bearing his or her facsimile signature is authenticated or delivered by the Note Registrar or issued by the City, that Note nevertheless may be authenticated, issued and delivered and, when 8~1. 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 notes. The Note also may be signed on behalf of the City by any person who, on the actual date of signing of the Note, is an officer of the City authorized to sign notes, although he or she did not hold the required office on the date of issuance of the Note. Section 9. Note Reqistrar. The Note Registrar shall keep, or cause to be kept, at his office, sufficient books for the registration and transfer of the Note which shall at all times be open to inspection by the City. The Note Registrar is authorized, on behalf of the City, to authenticate and deliver the Note transferred or exchanged in accordance with the provisions of the Note and this ordinance, to serve as the City's paying agent for the Note and to carry out all of the Note 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. Section 10. Preservation of Tax Exemption for Interest on Note. The City covenants that it will take all actions necessary to prevent interest on the Note 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 Note or other funds of the City treated as proceeds of the Note at any time during the term of the Note which will cause interest on the Note 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 note or bond issuer whose arbitrage certifications may not be relied upon. Section 11. Desiqnation of Notes 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) the Note is not 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 Note 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 used 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 calendar year in which the Note is issued is not reasonably expected to exceed $10,000,000; and (e) the amount of tax-exempt obligations, including the Note, 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 Notes are issued does not exceed $10,000,000. The City therefore designates the Note as a "qualified tax-exempt obligations" for the purposes of Section 265(b) (3) of the Code. 88451. ~7~ Section 12. Note Neqotiable. The Note shall be a negotiable instrument to the extent provided by RCW 62A.8-102 and 62A.8-105. Section 13. Approval of Note Purchase Contract. The National Bank of Bremerton, Bremerton, Washington, has presented a purchase contract to the City offering to purchase the Notes under the terms and conditions provided in the Note Purchase Contract, which written Note Purchase Contract is on file with the City Clerk and is incorporated herein by this reference. The City Council finds that entering into the Purchase Contract is in the City's best interest and therefore accepts the offer contained therein and authorizes its execution by City officials. The Note will be typed or printed at City expense and will be delivered to the purchaser in accordance with the Note Purchase Contract, with the approving legal opinion of Foster Pepper & Shefelman, municipal bond counsel of Seattle, Washington, regarding the Note accompanying the Note. 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 Note, and bond counsel's opinion shall so state. The principal proceeds received from the sale of the Note shall be paid into the Note Fund and used to pay part of the cost of the improvements ordered to be carried out by Ordinance No. 4419. Section 15. Effective Date. The City is in urgent need of the improvements ordered to be carried out in Local Improvement District No. 326 and it is necessary to issue the Note authorized by this ordinance as soon as possible. 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 /~ day of ~c~Q.~. , 1993. ! EILEEN FIT~ Council president LOUIS MENTOR, Mayor ATTEST: KkT~LEEN McCLUSK~Y, City Clerk 88451. ~9~