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HomeMy WebLinkAbout3626 CITY OF BREMERTON, WASHINGTON ORDINANCE NO. ~ ~& AN ORDINANCE of the City of Bremerton, Washington, relating to contracting indebtedness; providing for the issuance, specifying the maturities, maxi- mum effective interest rate, terms and covenants of $550,000 par value of "Fire Station Unlimited Tax General Obligation Bonds, 1981" authorized by the qualified voters of the City at a special election held therein pursuant to Ordinance No. 3595; establishing a bond redemption fund; and providing for the sale of such bonds. THE CITY OF BREMERTON DOES ORDAIN as follows: Section 1. The City of Bremerton, Washington (herein- after called the "City"), shall presently issue and sell the total $550,000 par value of negotiable general obligation bonds author- ized by the qualified voters of the City at a special election held on September 16, 1980, pursuant to Ordinance No. 3595 passed and approved July 15, 1980, for the purpose of constructing a fire station and expanding the main fire station facility. The bonds shall be designated "Fire Station Unlimited Tax General Obligation Bonds, 1981" (the "Bonds"), of the City; shall be dated July 1, 1981; 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 specified in the winning bid for the Bonds, but not in excess of an effective rate of 12% per annum, payable on July 1, 1982, and semiannually thereafter on each succeeding January 1 and July 1, as evidenced by coupons to be attached to the Bonds representing interest to maturity. 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 coupon rate for each such Bond from and after the maturity or call date until such Bond, both and interest, shall have been paid in full or until suf- money for such payment in ful~ is on deposit in the "Fire Unlimited Tax General Obligation Bond Fund, 1981" (the Bond hereinafter created, and such Bond has been duly called for Both principal of and interest On the Bonds are to be lawful money of the United States of America, which at the payment shall be legal tender for the payment of public and debts, at the office of the City T~easurer, or, at the the holder, at either fiscal agency of the State of in Seattle, Washington, or New York, New York. The mature serially, annually, in order of their numbers in following amounts on July 1 of each of the following years maturity schedule being computed at an assumed interest rate annum): Bond Numbers Maturity (Inclusive) Amounts Years 1 to 2 $10,000 1983 3 to 5 15,000 1984 6 to 8 15,000 1985 9 to 11 15,000 1986 12 to 14 15,000 1987 15 to 18 20,000 1988 19 to 22 20,000 1989 23 to 26 20,000 1990 27 to 31 25,000 1991 32 to 36 25,000 1992 37 to 42 30,000 1993 43 to 48 30,000 1994 49 to 55 35,000 1995 56 to 62 35,000 1996 63 to 70 40,000 1997 71 to 79 45,000 1998 80 to 89 50,000 1999 90 to 99 50,000 2000 100 to 110 55,000 2001 The City reserves the right to redeem any or all of the to their stated maturity dates as a whole, or in part numerical order} on July 1, 1991, or any semiannual payment date thereafter at par plus accrued interest to redemption. - 2 - Notice of such intended redemption shall be published in the official newspaper of the City, or if there is no official news- paper, then in a newspaper of general circulation in Kitsap County, 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 also 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 itself to levy taxes annually, without limitation as to rate or amount, on all property in the City subject to taxation in an amount sufficient, together with other money legally available and 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 hereby irrevocably pledged for the payment of the principal of and interest on such Bonds. Section 3. The City covenants that it will make no use of the proceeds of 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 - 3 - States Internal Revenue Code of 1954, as amended, and applicable regulations promulgated thereunder. Section 4. The Bonds and coupons shall be printed or lithographed on good bond paper in a form consistent with the pro- visions of this ordinance. The Bonds shall be signed by the fac- simile signature of the Mayor and attested by the manual signature of the City Clerk under the seal of the City, and the coupons shall bear the facsimile signatures of the Mayor and the City Clerk. Section 5. The Bond Fund is herebY created and estab- lished in the office of the City Treasurer. The accrued interest and premium received, if any, upon the sale and delivery of the Bonds shall be paid into the Bond Fund. The principal proceeds received from the sale and delivery of the Bonds shall be paid into the "Fire Station Capital Project Fund," previously created and established in the office of the City Treasurer 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 proceeds in any legal investment and the investment earnings may be retained in the "Fire Station Capital Project Fund," and expended for the purposes of such fund. All taxes collected for and allo- cated 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. - 4 - The City Clerk is authorized to give notice calling for bids to purchase the Bonds by publishing the same once a week for four consecutive weeks in the official newspaper of the City, or if there is no official newspaper, then in a newspaper of general cir- culation in the City. 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 June 16, 1981, 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 commencing immediately thereafter. A copy of the notice shall be mailed to the State Finance Committee, Olympia, Washington, at least three weeks prior to the date fixed for the sale. 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 (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. Coupon rates shall be in multiples of 1/Sth or 1/20th of 1%, or both. No more than one rate of interest may be fixed for any one maturity. Only one coupon will be attached to each of the Bonds for each installment of interest thereon, and bids providing - 5 - for additional, or supplemental coupons will be rejected. The maximum differential between the lowest and highest coupon rates named in any bid shall not exceed 2%. For the purpose of comparing the bids only, the coupon 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 provided by law, and no bid for less than all of the Bonds shall be consid- ered. 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 cheek 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 purchaser pending the payment for the Bonds. The purchaser shall not be credited for such earnings. If the Bonds are ready for delivery and the success- ful 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 bes~ 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 purchase price plus accrued interest to the date of delivery, - 6 - less the amount of the good faith deposit, at the office of the City Treasurer or in Seattle, Washington, at the City's expense, or at such other place as the City Treasurer and the successful bidder may mutually agree upon at the purchaser's expense. 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 con- stitute cause for a failure or refusal by the purchaser thereof to accept delivery of and pay for the Bonds in accordance 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 re- ceipt of bids will not be received, and any bid not accompanied by the 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 obligation to purchase the Bonds, and in such case the deposit accompanying its bid will be returned, without interest. The notice 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, Lawrence, Gay & Moch, bond counsel of Seattle, Washington, covering - 7 - the Bonds without cost to the purchaser, the opi. nion also being printed on each bond. Bond counsel shall not be required r~'~iew or express any opi. nion concerning the completeness or accuracy of any official s[:atement, oF_-fering c~_rcu]ar or other sales material issued or used in connection with the Bonds, and bond counsel's opinion shall so state. Such nohice sh~ll also provide that further information regarding ~he details o[ ~he Bonds may be received ~.?on request made Lo H. ~/ackson Sh~r].ey & Co. Inc. , the City's financial consultant. ~e~_~.~_~. This ordinance shall ~ake efffect thirty (30) days after ihs passage and oub].icahion as required by CNa r her. APPROVN0 by the City Council on ~he ~-[4st ~eadLng ~.:,, ~ . ~..~e ~'J_~y Council of .qT'2I~:ST: Robert Stewart~ Mayor Pro Tem .A[HLE~N L b~NDIO, Ci2v Clerk Approved as to Form: I, KATHLEEN L. MANDIO, City Clerk of the City of Bremerton, Washington, hereby certify that the attached copy of Ordinance No. ~~ is a true and correct copy of the original ordinance passed on the ~ day of ~'~_~.~ , 1981, as such ordina,ce appears on the Minute Book of the City. KAT~iL~.EN L. MANDIO, City Clerk'