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HomeMy WebLinkAbout3422 Distribution: Attor Bond File/ Treasurer/ Bremerton Sun/ o niN cs AN ORDINANCE relating to recreation facilities; providing for the issuance and sale of $250,000 par value of "Limited General Obligation Bonds, 1978," of the City to provide a part of the funds with which to pay the cost of constructing and equipping a covered swimming pool; specifiying the maturities and fixing the form and maximum effective interest rate of such bonds; and estab- lishing a "Limited General Obligation Bond Fund, 1978." WHEREAS, THE CITY OF BRFg~ERTON has heretofore determined to proceed with the construction of a covered swimming pool; and WHEREAS, the City has heretofore received a commitment of a grant from the Economic Development Administration, United States Department of Commerce, in the amount of $1,000,000 for the construction of such swimming pool, bath house, common spaces and an activity center; and WHEREAS, it is the intention of the City to proceed with the construction of the covered swimming pool at this time; NOW, THEREFORE, THE CITY OF BREMERTON DOES ORDAIN: Section 1. The City Council hereby finds that the assessed valuation of taxable property of the City, as ascertained by the last preceding assessment for City purposes for the calendar year 1978, is $392,596,048.00, and the City has outstanding general indebtedness which was voted by the electors of the City and issued within the 2-1/2% limit imposed by State statute of $450,000.00 and the City has heretofore issued within the limit of .75% of assessed valuation imposed by State statute permitted for general municipal purposes without a vote of the qualified electors therein of $425,000.00, and the amount of indebtedness for which bonds herein authorized to be issued is $250,000. Section 2. The bonds shall be called "Limited General Obligation Bonds, 1978" (the "Bonds"), of the City; shall be dated ~ shall be in denominations of $5,000 each; shall be num- bered from 1 to 50, inclusive, and shall bear interest at an effective rate not to exceed 8% per annum, payable on November 1, 1978, and semiannually thereafter on each succeeding May 1 and November 1, as evidenced by coupons to be attached to the Bonds representing interest to maturity with full obligation on the part of the City to pay interest at the bond rate, from and after maturity, until the Bonds, both principal and interest, are paid in full. Both principal and interest are to be paid in lawful money of the United States of America at the office of the City Treasurer of Bremerton, Washington, 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 Bonds shall mature serially in order of their numbers on May 1 in the years and amounts as follows: Bond Numbers (Inclusive) ~ounts Years 1 to 5 $25,000 1980 6 to 10 25,000 1981 11 to 15 25,000 1982 16 to 20 25,000 1983 21 to 25 25,000 1984 26 to 31 30,000 1985 32 to 37 30,000 1986 38 to 43 30,000 1987 44 to 50 35,000 1988 Section 3. The Bonds are issued without the right or Option of the City to redeem them prior to their stated maturity dates. Section 4. The City hereby irrevocably pledges itself to levy taxes annually, within the constitutional and statutory tax limitations provided by law, upon 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 accrue, and the full faith, credit and resources of the City are hereby irrevocably pledged for the payment of the principal of and interest on the Bonds. -2- Section 5. The Bonds shall be in substantially the fol- ~- lowing form: No. $5,000 UNITED STATES OF AMERICA STATE OF WASHINGTON CITY OF BRE~ERTON LIMITED GENERAL OBLIGATION BOND, 1978 % The City of Bremerton, Washington (the "City"), is justly indebted to and for value received here- by promises to pay to bearer on the FIRST DAY OF MAY, 19 , the sum of FIVE THOUSAND DOLLARS together with interest thereon at the rate of per annum, payable on November 1, 1978, and semi- -- annually thereafter on each succeeding May 1 and November 1, interest to maturity being evidenced by and payable upon the presentation and surrender of the attached interest coupons as they severally become due, with full obligation on the part of the City to pay interest at the same rate from and after the maturity date, in the absence of coupons, until this bond with interest is paid in full. This bond is payable, both principal and interest, in lawful money of the United States of America at the office of the City Treasurer of the City or, at the option of the holder hereon, at either fiscal agency of the State of Washington in Seattle, Washington, or New York, New York. This bond is one of a total issue of $250,000 par value of bonds, all of like date, tenor and effect, except as to maturities (and interest rates if more than one interest rate is bid), issued by the City for general municipal purposes to provide a part of the funds which which to pay the cost of constructing and equipping a covered swimming pool, and is issued in full compliance with the ordinances of the City and the laws and constitution of the State of Washington. The bonds of this issue are issued without the right or option of the City to redeem them prior to their stated maturity dates. The City hereby irrevocably pledges itself to levy taxes annually, within the constitutional and statutory tax limitations provided by law, upon all property in the City subject to taxation in an amount sufficient together with other money legally avail- able and used therefor to pay the principal of and -3- interest on the bonds of this issue as the same shall accrue, and the full faith, credit and re- sources of the City are hereby irrevocably pledged for the payment of the principal of and interest on the bonds of this issue. It is hereby certified that all acts, conditions and things required to be done precedent to and in the issuance of this bond have been done, have hap- pened and have been performed as required by law, and that the total indebtedness of the City, in- cluding this bond issue, does not exceed any constitutional or statutory limitations. IN WITNESS WHEREOF, the City has caused this bond to be signed by the facsimile signature of its Mayor and attested by the manual signature of its City Clerk and its corporate seal to be hereto affixed and the interest coupons attached to be signed with the facsimile signatures of those officials this first day of May, 1978. CITY OF BREMERTON, WASHINGTON By (facsimile signature).~ Mayor- ' ATTEST: City Clerk The form of the interest coupons shall be substantially as follows: Coupon No. $ (Unless the bond referred to below is previously redeemed) On the FIRST DAY OF (MAY) (NOVEMBER), 19__, the CITY OF BREMERTON, WASHINGTON, upon presentation and surrender of this coupon, will pay to bearer at the office of the City Treasurer or, at the op- tion of the holder, at either fiscal agency of the State of Washington in Seattle, Washington, or New York, New York, the sum shown hereon in lawful money of the United States of America, such sum being the semiannual interest due that date upon its "Limited General Obligation Bond, 1978," dated May 1, 1978, and numbered. CITY OF BREMERTON, WASHINGTON By (facsimile signature) Mayor ATTEST: (facsimile signature) City Clerk -4- Section 6. The Bonds shall be printed or lithographed on good bond paper and shall be signed by the facsimile signature of the Mayor and attested by the manual signature of the City Clerk of the City under the seal of the City and the coupons shall bear the fac- simile signatures of the Mayor and the City Clerk. Section 7. There is hereby created and established in the office of the City Treasurer a special fund t° be known and designated as the "Limited General ObligatiOn Bond Fund, 1978" (the "Bond Fund"), of the City. The accrued interest received, if any, from the sale of the Bonds shall be paid into the Bond Fund. The principal proceeds received from the sale of the Bonds shall be paid into the "Recreation Facilities Construction Fund"of the City heretofore created by Ordinance No. 3384 of the City.- 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. The City hereby covenants that any interest, income or profits received from the interim investment of the proceeds of sale of the Bonds shall not exceed the then applicable limits provided by federal statutes and regulations respecting arbitrage. Section 8. The Bonds shall be sold for cash at public sale for not less than par, plus accrued interest, upon sealed bids to be received at the office of the City Clerk up to the day and hour stated in the Notice of Bond Sale hereinafter directed to be given. Notice calling for bids to purchase the Bonds shall be published once a week for four consecutive weeks in the official news- paper of the City and such notice shall also be published once in the Daily Journal of Commerce of Seattle, WaShington, at least ten days before the bid opening date. Such notice shall specify that bids for the purchase of the Bonds shall be received by the City Clerk of the City in the Council Chambers of the City Hall on~~ ~ , 1978, up to ~1100 ~.m., local time, at which time all bids will be -5- publicly opened'for the~purchase of the Bonds and considered by the City Council at a meeting thereof then to be held. A copy of the notice shall, at least three weeks prior to the date fixed for the sale, be mailed to the State Finance Committee, Olympia, Washington. Bids shall be invited for the purchase of the Bonds with fixed maturities in accordance with the schedule specified in Section 2 hereof. The~notice shall specify the maximum effective rate of interest the Bonds shall bear, that is, 8% 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. Coupon rates shall be in multiples of 1/8 or 1/10 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 Bond for each in- stallment of interest thereon, and bids providing 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 of the City 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 Council reserves the right to waive any defects in any bid or the bidding process. --6-- · Ail bids shall be sealed and, except the bid of the State of Washington, if one is received, shall be accompanied by a deposit of $12,500. The deposit shall be either cash or by certified or cashier's check made payable to the City Treasurer of the City and shall be promptly returned if the bid is not accepted. If the Bonds are ready for delivery and the successful bidder shall fail and neglect to complete the purchase of the Bonds within forty days following the acceptance of his bid, the amount of his deposit shall be forfeited to the City and in that event the City Council 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 will be accepted. The Bonds will be delivered to the successful bidder at the office of the Treasurer of the City or in the City of Seattle, at the City's expense, or at such other place as the Treasurer and the successful bidder may mutually agree upon at the purchaser's expense. A no-litigation certificate in the usual form will be in- cluded in the closing papers. Any bid presented after the hour specified for the receipt of bids will not be received and any bid not accompanied by the required bid deposit at the time of opening such bid will not be read or con- sidered. The City Clerk of the City shall be and is hereby authorized and directed to publish notice for the purchase of the Bonds in the manner required by law in accordance with the provisions of this Section. Such notice 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, municipal bond counsel of Seattle, Washington, covering the Bonds without cost to the purchaser, such opinion also being printed on each bond. Bond counsel shall not be required to review or express any -7- opinion concerning the completeness or accuracy of any officia]'statemcnt or other sales material issued or used in connection with the Bonds, and bond counsel's opinions shall so state. Such notice shall also provide that further information regarding the details of such Bonds may be received upon request made to the City Clerk or to First Washington Corporation, the City's financial consultants, at 1411 Fourth Avenue, Seattle, Washington. Section 9. This ordinance shall take effect and be in force from and after its passage, approval and publication as provided by law. APPROVED by the City Commissioners on first reading this ~ T~ PASSED by the City Commissioners of the City of Bremerton, signed by the Mayor and attested by the City Clerk in authentication of such passage this' ~ day of April, 1978. ATTEST: KATHLEEN L. MANDIO, City Clerk -8- 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 ~, 1978, as that ordinance appears on the Minute Book of the City. DATED this ~ day of D~;L , 1978. KA~f~N L. M~NDI0, City Clerk