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HomeMy WebLinkAbout3902 CITY OF BREMERTON, WASHINGTON ORDINANCE NO. ~,a. AN ORDINANCE of the City of Bremerton, Washington, relating to the combined water and sewer- age system of the City; authorizing the issuance and sale of water and sewer revenue bonds in the princi- pal amount of not to exceed $9,000,000 to pay the cost of carrying out a portion of the system or plan of additions and betterments to and extensions of the combined water and sewerage system of the City ordered by Ordinance No. 3861 of the City; authoriz- ing the issuance of bond anticipation notes in the amount of $7,305,000 pending receipt of the proceeds of such bonds; creating a special water and sewer revenue bond anticipation note fund; and providing for the sale of such notes to Foster & Marshall/ American Express Inc. of Seattle, Washington. WHEREAS, the City of Bremerton, Washington (the "City"), has presently outstanding Water and Sewer Revenue Bonds, 1955, issued under date of October 1, 1955, and Water and Sewer Revenue Bonds, 1965, issued under date of December 1, 1965, which have an equal lien and charge on the gross revenue of the combined water and sewerage system of the City; and WHEREAS, the City has presently outstanding Water and Sewer Revenue Bonds, 1971, issued under date of December 1, 1971, Water and Sewer Revenue Bonds, 1973, issued under date of December 1, 1973, and Water and Sewer Revenue Bonds, 1983, issued under date of September 1, 1983, which have an equal lien and charge on the revenue of the combined water and sewerage system of the City and which are Junior and subordinate to the claim or lien on such revenue of the 1955 and 1965 water and sewer revenue bonds referred to above; and WHEREAS, pursuant to Ordinance No. 3887, the City author- ized the issuance of not to exceed $5,000,000 par value of water and sewer revenue bonds for the purpose of paying part of the cost of a plan for water system improvements specified and adopted by that ordinance, and pending the issuance of such bonds issued $1,000,000 of Water and Sewer Revenue Bond Anti- cipation Notes, 1984, to provide interim financing for such improvements, which Notes are Junior and subordinate to the claim or lien on such revenue of the 1955 and 1965 water and sewer revenue bonds referred to above and the 1971, 1973 and 1983 water and sewer revenue bonds referred to above, bonds issued on a parity of lien therewith, and additional water and sewer revenue bonds issued to pay the costs of the system or plan of additions and betterments to and extensions of the combined water and sewerage system of the City adopted by Ordinance No. 3861; and WHEREAS, the City Council has determined that it is neces- sary to carry out a portion of the system or plan of additions and betterments to and extensions of the combined water and sewerage system of the City ordered to be carried out by Ordi- nance No. 3861 of the City; and WHEREAS, the City Council deems it to be in the best inter- est of the City that the City borrow money and issue short-term obligations in accordance with the provisions of Chapter 39.50 RCW in anticipation of the sale of the water and sewer revenue bonds authorized herein and/or the receipt of payments from the United States Navy pursuant to a contract entered into between the City and the United States Navy as of April 6, 1984, for the purpose of providing the funds with which to pay the cost of carrying out such system or plan; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DO ORDAIN as follows: Section 1. As used in this ordinance the following words shall have the following meanings: (a) "City" shall mean the City of Bremerton, Washington. (b) "Navy Contract" shall mean the contract for sewer service entered into between the City and the United States Navy as of April 6, 1984. - 2 - (c) "Note Fund" shall mean the "Water and Sewer Revenue Bond Anticipation Note Fund (U. S. Navy Issue)" created in Section 3 of this ordinance. (d) "Notes" shall mean the "Water and Sewer Revenue Bond Anticipation Notes, 1984 (U. S. Navy Issue)," of the City, the issuance and sale of which are provided for in this ordinance. (e) "Outstanding Notes" shall mean the outstanding Water and Sewer Revenue Bond Anticipation Notes, 1984, dated February 15, 1984, and issued pursuant to Ordinance No. $887. (f) "Outstanding Bonds" shall mean the outstanding Water and Sewer Revenue Bonds, 1971, Water and Sewer Revenue Bonds, 1973, and Water and Sewer Revenue Bonds, 1983, of the City. (g) "Prior Lien Bonds" shall mean the outstanding Water and Sewer Revenue Bonds, 1955, and Water and Sewer Revenue Bonds, 1965, of the City. (h) "System" shall mean the existing combined water and sewerage system of the City as the same may be added to, improved and extended for as long as any of the Outstanding Bonds, Prior Lien Bonds, Outstanding Notes, or Notes are outstanding. Section 2. For the purpose of paying part of the costs of the system or plan ordered by Ordinance No. 3861, the City shall issue its water and sewer revenue bonds in the amount of not to exceed $9,000,000. The exact amount, date, price, number, denomination, form, covenants, lien position and interest rate or rates on such bonds shall be specified later by the ordinance providing for the definitive bonds. The bonds authorized by this section may be combined with any other issue or may be issued in one or more series. Section 3. There is created and established in the office of the City Treasurer a special fund to be known as the "Water - 3 - and Sewer Revenue Bond Anticipation Note Fund (U. S. Navy Issue)' (the "Note Fund"). Pending the issuance of the water and sewer revenue bonds authorized in Section 2 of this ordinance, the City shall issue and sell its water and sewer revenue bond anticipation notes (the "Notes") in the principal amount of $7,305,000. The Notes shall be in fully registered form; shall be in denominations of $5,000 each or any integral multiple thereof; shall be numbered separately and in the manner and with any additional designation as the Note Registrar (the fiscal agencies of the State of Washington in Seattle, Washington, and New York, New York) deems necessary for purpose of identification; shall be dated as of the date of their delivery to the initial purchaser thereof; shall mature on March 1, 1986; and shall bear interest at the rate of 7.50% per annum, payable on September 1, 1984, and semi- annually thereafter on each March 1 and September 1, and, if any Note is not redeemed by its maturity or call date, with full obligation on the part of the City to pay interest at the same rate from and after the maturity or call date until such Note with interest is paid in full or until sufficient money for such payment is on deposit in the Note Fund and the Note has been duly called for redemption by the Note Registrar's mailing writ- ten notice of such call at least ten days prior to the call date to the registered owner of any Note to be redeemed at his/her/ its address appearing on the book or records (the "Note Regis- ter') maintained by the Note Registrar on the date of mailing. The City Council declares and finds that the fixing of the above interest rate is in the best interests of the City. Both principal of and interest on the Notes shall be pay- able solely out of the Note Fund from the proceeds of the water and sewer revenue bonds authorized by this ordinance to be - 4 - issued to be deposited in such fund, from the receipt of pay- ments from the United States Navy under the Navy Contract, from the proceeds of other short-term obligations issued to redeem previously issued and then outstanding Notes, or from other money legally available and to be used therefor. The Notes may be paid from the gross earnings and revenue of the System, but shall be subordinate to the claims on that revenue of the normal expenses of maintenance and operation of the System, the Prior Lien Bonds, the Outstanding Bonds and bonds issued on a parity of lien therewith, and the Outstanding Notes. The Notes shall not be general obligations of the City. The Notes shall be issued only in registered form as to both principal and interest on the Note Register. Such Note Register shall contain the name and mailing address of the owner of each Note and the principal amount and the certificate number of the Notes held by each owner or nominee. Both principal of and interest on the Notes shall be pay- able in lawful money of the United States of America. Interest on the Notes shall be paid by check or draft mailed, or when requested in writing by the City, by wire transfer, to the registered owners of the Notes at the addresses for such owners appearing in the Note Register on the 15th day of the month preceding the interest payment date. Principal of the Notes shall be payable upon presentation and surrender of the Notes by the registered owners at either of the principal offices of the Note Registrar. Section 4. The City may repay and redeem the Notes on or after March 1, 1985, at par plus accrued interest by giving written notice of such redemption to the registered owners at least thirty days prior to the proposed call date. Interest on the Notes shall cease on the date fixed for such redemption upon - 5 - the deposit in the Note Fund of sufficient money to redeem the Notes, both principal and interest. Section 5. The Notes shall be printed or lithographed on good bond paper in a form consistent with this ordinance and State law. The Notes shall be signed by the facsimile signa- tures of the Mayor and City Clerk of the City, and shall have the seal of the City affixed imprinted thereon. Only such Notes as shall bear thereon a Certificate of Authentication manually executed by the Bond Registrar shall be valid or obligatory for any purpose or entitled to the benefits of this ordinance. Such 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. The Notes shall be negotiable instruments to the extent provided by RCW 62A.8-102 and 62A.8-105. Section 6. The Note Registrar shall keep, or cause to be kept, at its principal corporate trust office, sufficient books for the registration and transfer of the Notes 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 Notes transferred or exchanged in accordance with the provisions of such Notes and this ordinance, to serve as the City's paying agent for the Notes and to carry out all of the Note Reglstrar'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 Note Registrar shall be responsible for its representa- tions contained in the Registrar's Certificate of Authentication on the Notes. The Note Registrar may become the owner of Notes with the same rights it would have if it were not the Note - 6 - Registrar, and to the extent permitted by law, may act as depos- itory for and permit any of its officers or directors to act as a member of, or in any other capacity with respect to, any committee formed to protect the rights of Note owners. Section 7. The City covenants that it will spend the principal proceeds of the Notes with due diligence to completion of the purposes specified in this ordinance and will make no use of the proceeds of the Notes or of its other money at any time during the term of the Notes which will cause the Notes to be arbitrage obligations within the meaning of Section 10S(c) of the United States Internal Revenue Code of 1954, as amended, and applicable regulations promulgated thereunder. Section 8. In the event the City shall issue advance refunding bonds or other obligations pursuant to the laws of the State of Washington or have money available from any other lawful sources to pay the principal of and interest on the Notes as the same become due and payable and to refund the Notes and to pay the costs of refunding and shall have irrevocably set aside in a special fund for and pledged to such payment and refunding, money and/or direct obligations of the United States of America or other legal investments sufficient in amount together with known earned income from the investment thereof to make such payments and to accomplish the refunding as scheduled (hereinafter called the "trust account") and shall make irrevo- cable provision for redemption of the Notes, then in that case all right and interest of the owners of the Notes to be so retired or refunded (herein called the "defeased Notes") in the covenants of this ordinance and in any funds and accounts obli- gated to the payment of the Notes shall thereafter cease and become void except such owner shall have the right to receive payment of the principal of and interest on the defeased Notes from the trust account. After the establishing and full funding - 7 - of such trust account, the City may then apply any money in any other fund or account established for the payment or redemption of the defeased Notes to any lawful purposes as it shall deter- mine, subject only to the rights of the holders of any other bonds or notes then outstanding. Section 9. Foster & Marshall/American Express Inc. of Seattle, Washington, has submitted an offer to purchase the Notes at a price of $98.75 per each $100.00 par value thereof, the City to furnish the printed, typewritten or multlcopled Notes and the approving legal opinion of Roberts & Shefelman, municipal bond counsel of Seattle, Washington, 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 mate- rial issued or used in connection with the Notes, and bond counsel's opinion shall so state. The City Council, deeming it to be in the best interest of the City that such offer be accepted, accepts the same. The Notes shall be delivered to Foster & Marshall/American Express Inc. of Seattle, Washington, immediately upon their execution, upon payment therefor in accordance with such offer. The principal proceeds received from the sale of the Notes shall be deposited into the Wastewate~Facili~ies ConstruetionP~ojectFund and used for the purposes set forth in Section 2 hereof and for the purpose of paying interest on the Notes as the same comes due. Pending such expenditure, money in the Wastewate~ Facilities Con- struction Project Fund may be invested and the investment earn- ings retained in such fund and applied to the purposes for which the Notes are issued. APPROVED by the City Council on the \%¥ reading this ~ day of ~-~ 0 1984. - 8 - PASSED by the City Council of the City of Bremerton, signed by the Mayor and attested by the City Clerk in authentication of such passage this \~ day of ~%~ , 1984. ATTEST: KATHLEEN L. McCLUSKEY City Clerk APPROVED AS TO FORM: 0681b - 9 - I, KATHLEEN L. McCLUSKEY0 City 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 ~ day of 1984, as that ordinance appears on the Minute book of the City. DATED this ~l day of ~,~ , 1984. KATHLEEN L. McCLUSKEY, City ~lerk 0681b