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HomeMy WebLinkAbout3765 CITY OF BREMERTON, WASHINGTON AN ORDINANCE of the City of Bremerton, Washington, relating to contracting indebtedness; providing for the issuance, specifying the maturities, maximum effective interest rate, terms and covenants of ~550,000 par value of "Unlimited Tax General Obliga- tion Bonds, 1983," authorized by the qualified voters of the City at a special election held therein pursu- ant to Ordinance No. 3595; establishing a bond redemption fund and a construction fund; and pro- viding for the sale of such bonds. THE CITY OF BREMERTON, WASHINGTON, DOES ORDAIN as follows: Section 1. The City of Bremerton, Washington (the "City"), shall presently issue and sell the total ~550,000 par value of negotiable general obligation bonds authorized by the qualified voters of the City at a special election held on September 16, 1980, pursuant to Ordinance No. 3595 passed July 15, 1980, for the purpose of constructing a fire station and expanding the main fire station facility. The bonds shall be designated "Unlimited Tax General Obligation Bonds, 1983" (the "Bonds"), of the City; shall be dated February 1, 1983; shall be in the denomination of ~5,000 each; shall be numbered from 1 to 110, inclusive; and shall bear interest at the rate or rates speci- fied in the winning bid for the Bonds, but not in excess of an effective rate of 12% per annum, payable on February 1, 1984, and semiannually thereafter on each succeeding August 1 and February 1, as evidenced by coupons to be attached to the Bonds representing interest to maturity, unless the Bonds are issued in fully registered form. If any Bond is not redeemed when duly presented at its maturity or call date thereof, the City shall be obligated to pay interest at the bond rate for each such Bond from and after the maturity or call date until such Bond, both principal and interest, shall have been paid in full or until sufficient money for such payment in full is on deposit in the "Unlimited Tax General Obligation Fire Station Bond Fund, 1983" "Bond Fund"), hereinafter created, and such Bond has been called for payment by the City Treasurer's publishing notice of call once at least ten days prior to the sale date in the official newspaper of the City or, if there is no official newspaper, in a newspaper of general circulation in the City. principal of and interest on the Bonds are to be paid in lawful money of the United States of America which at the time payment shall be legal tender for the payment of public and private debts at the office of the City Treasurer, or, at the option of the holder, at either fiscal agency of the State of Washington in Seattle, Washington, or New York, New York. The shall mature serially, annually, in order of their numbers the following amounts on February 1 of each of the following (such maturity schedule being computed at an assumed interest rate of 12% per annum): Bond Numbers Maturity (Inclusive) Amounts Years 1 to 2 ~10,000 1985 3 to 4 10,000 1986 5 to 6 10,000 1987 7 to 8 10,000 1988 9 to 11 15,000 1989 12 to 14 15,000 1990 15 to 17 15,000 1991 18 to 21 20,000 1992 22 to 25 20,000 1993 26 to 30 25,000 1994 31 to 35 25,000 1995 36 to 41 30,000 1996 42 to 48 35,000 1997 49 to 56 40,000 1998 57 to 64 40,000 1999 65 to 73 45,000 2000 74 to 84 55,000 2001 85 to 96 60,000 2002 97 to 110 70,000 2003 The City reserves the right to redeem any or all of the prior to their stated maturity dates as a whole, or in - 2 - part in inverse numerical order, on February 1, 1993, or any semiannual interest payment date thereafter at par plus accrued interest to date of redemption. Notice of such intended redemption shall be published in the official newspaper of the City, or if there is no official newspaper, then in a newspaper of general circulation in the City, at least once not less than 30 nor more than 45 days prior to the call date, and a copy of such notice shall be mailed within the same period to the main office of the principal underwriter or account manager of the successful bidder for the Bonds, or its successor. In addition, such redemption notice shall be sent to Moody's Investors Service, Inc., and Standard & Poor's Corporation, at their offices in New York, New York, but the mailing of such notice to such New York firms shall not be a condition precedent to the redemption of such Bonds. Interest on any Bonds so called for redemption shall cease on such call date upon payment of the redemption price into the Bond Fund. The City further reserves the right to purchase any or all of the Bonds in the open market at any time at a price not in excess of par plus accrued interest to date of purchase. Section 2. The City irrevocably pledges to levy taxes annually, without limitation as to rate or amount, on all prop- erty in the City subject to taxation in an amount sufficient, together with other money legally available and to be used therefor, to pay the principal of and interest on the Bonds as the same shall become due, and the full faith, credit and resources of the City are pledged irrevocably for the payment of the principal of and interest on such Bonds. Section 3. The City covenants that it will spend the pro- ceeds of the Bonds with due diligence to completion of the pur- poses specified herein and will make no use of the proceeds of - 3 - the Bonds or of its other money at any time during the term of the Bonds which will cause the Bonds to be arbitrage bonds within the meaning of Section 103(c) of the United States Internal Revenue Code of 1954, as amended, and applicable regu- lations promulgated thereunder. Section 4. The Bonds shall be printed or lithographed on good bond paper in a form consistent with the provisions of this ordinance. The bonds shall be issued in fully registered form unless the effective date of the registration provisions of the Federal Tax Equity and Fiscal Responsibility Act (TEFRA) are extended to permit the Bonds to be issued with bearer interest coupons attached. The Bonds shall be signed by the facsimile signature of the Mayor and attested by the manual signature of the City Clerk and by the registrar if issued in registered form and a facsimile reproduction of the seal of the City shall be printed thereon, and the coupons, if any, shall bear the fac- simile signatures of the Mayor and the City Clerk. Section 5. The Bond Fund is created and established in the office of the City Treasurer. The accrued interest received, if any, upon the sale and delivery of the Bonds shall be paid into the Bond Fund. There is also created and established in the office of the City Treasurer a special fund to be known and designated as the "Fire Station Capital Project Fund" of the City. The principal proceeds and premiums, if any, received from the sale and delivery of the Bonds shall be paid into the "Fire Station Capital Project Fund" and used for the purposes specified in Section 1 of this ordinance and to pay the costs of issuance and sale of the Bonds. Pending the expenditure of such principal proceeds, the City may temporarily invest such pro- ceeds in any legal investment and the investment earnings may be retained in the "Fire Station Capital Project Fund" and expended - 4 - for the purposes of such fund. All taxes collected for and allocated to the payment of the principal of and interest on the Bonds shall hereafter be deposited in the Bond Fund. Pending the receipt of the proceeds from the issuance of the Bonds, interest-bearing warrants may be drawn on the "Fire Station Capital Project Fund" to provide interim funds to pay such costs, such loan to be repaid from the proceeds received from the issuance of the Bonds. Section 6. The Bonds shall be sold for cash at public sale for not less than par, plus accrued interest to the date of delivery of and payment for the Bonds. The City Clerk is authorized to give notice calling for bids to purchase the Bonds by publishing such notice as required by law and a short abbreviated form of such notice also shall be published once in The Seattle Daily Journal of Commerce and Northwest Construction Record of Seattle, Washington, at least ten days prior to the sale date. Such notice shall specify that sealed bids for the purchase of the Bonds shall be received by the City Clerk in her office in the City Hall on February 2, 1983, up to 11:00 a.m., local time, at which time all bids will be publicly opened and read and an. award made by the City Council at its regular meeting to be held in the City Council Chambers at 5:30 p.m. this same day. Bids shall be invited for the purchase of the Bonds with fixed maturities in accordance with the schedule specified in Section 1 hereof. The notice shall specify the maximum effective rate of interest the Bonds shall bear, namely, 12% per annum, and shall require bidders to submit a bid specifying: (a) The lowest rate or rates of interest and premium, if any, above par at which the bidder will purchase the Bonds; or - 5 - (b) The lowest rate or rates of interest at which the bidder will purchase the Bonds at par. No bid will be considered for the Bonds for less than par and accrued interest. The purchaser must pay accrued interest to date of delivery of the bonds. Interest rates shall be in multiples of 1/8th or 1/20th of 1%, or both. No more than one rate of interest may be fixed for any one maturity. If the Bonds are issued in bearer coupon form only one coupon will be attached to each of the Bonds for each installment of interest thereon, and bids providing for addi- tional or supplemental coupons will be rejected. The maximum differential between the lowest and highest interest rates named in any bid shall not exceed 2%. For the purpose of comparing the bids only, the interest rates bid being controlling, each bid shall state the total interest cost over the life of the Bonds and the net effective interest rate of the bid. The Bonds shall be sold to the bidder making the best bid, subject to the right of the City Council to reject any and all bids and to readvertise the Bonds for sale in the manner pro- vided by law, and no bid for less than all of the Bonds shall be considered. The City further reserves the right to waive any irregularity in any bid or in the bidding process. All bids shall be sealed and, except the bid of the State of Washington, if one is received, shall be accompanied by a deposit of ~27,500. The deposit shall be either by certified check or cashier's check made payable to the City Treasurer and shall be promptly returned if the bid is not accepted. The City reserves the right to invest the good faith deposit of the pur- chaser pending the payment for the Bonds. The purchaser shall not be credited for such earnings. If the Bonds are ready for - 6 - delivery and the successful bidder shall fail or neglect to complete the purchase of the Bonds within forty days following the acceptance of its bid, the amount of its deposit shall be forfeited to the City and in that event the City may accept the bid of the one making the next best bid. If there be two or more equal bids for not less than par plus accrued interest and such bids are the best bids received, the City Council shall determine by lot which bid shall be accepted. The Bonds will be delivered to the successful bidder against payment of the pur- chase price plus accrued interest to the date of delivery, less the amount of the good faith deposit, at the office of the City Treasurer in Bremerton, Washington, or in Seattle, Washington, at the City's expense, or at such other place upon which the City Treasurer and the successful bidder may mutually agree at the purchaser's expense. Settlement shall be made in federal funds immediately available at the time of delivery of the Bonds. A no-litigation certificate in the usual form will be included in the closing papers. CUSIP numbers will be printed on the Bonds, if requested in the bid of the successful bidder, but neither failure to print such numbers on any bond nor error with respect thereto shall constitute cause for a failure or refusal by the purchaser thereof to accept delivery of and pay for the Bonds in accord- ance with the terms of the purchase contract. All expenses in relation to the printing of CUSIP numbers on the Bonds shall be paid by the City; but the fee of the CUSIP Service Bureau for the assignment of those numbers shall be the responsibility of and shall be paid for by the purchaser. Any bid presented after the time specified for the receipt of bids will not be received, and any bid not accompanied by the - 7 - required bid deposit at the time of opening will not be read or considered. If, prior to the delivery of the Bonds, the interest receivable by the holders thereof shall become taxable, directly or indirectly, by the terms of any federal income tax law, the successful bidder may at its option be relieved of its obliga- tion to purchase the Bonds, and in such case the deposit sccompanying its bid will be returned, without interest. The not~ce of bond sale shall provide that the City will cause the Bonds to be printed or lithographed and signed and will furnish the approving legal opinion of Messrs. Roberts & Shefelman (Roberts, Shefelman, Lawrence, Gay &Moch), bond coun- sel of Seattle, Washington, covering the Bonds without cost to the purchaser, the opinion also being printed on each bond. 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 Bonds, and bond counsel's opinion shall so state. Such not~ce shall also provide that further information regarding the details of the Bonds may be received upon request made to H. Jackson Shirley & Co. Inc., the City's financial consultant. Section 7. The City Council finds and declares that an emergency exists and that the immediate passage of this ordi- nance is necessary for the health, safety and welfare of the inhabitants of the City. Accordingly, this ordinance shall become effective immediately upon its passage, s~gning and attestation, and publication. APPROVED on first reading this 21 day of December, 1982. PASSED unanimously by the City Council of the City of Bremerton, Washington at a regular open public meeting thereof, - 8 - signed by the Mayor and attested by the City Clerk in authenti- cation of such passage, this 28th day of December, 1982. CITY OF BREMERTON, WASHINGTON ATTEST: City Clerk APPROVED AS TO FORM: - 9 - I, KATHLEEN L. MANDIO, City Clerk of the City of Bremerton, W~shington, hereby certify that the attached copy of Ordinance No. ~' is a true and correct copy of the original ordinance passed on the 28th day of December, 1982, as such ordinance appears on the Minute Book of the City. DATED this ~ day of December, 1982. KATHLEEN L. MANDIO, City Clerk 0256b