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HomeMy WebLinkAbout3273 CITY OF BREMERTON, WASHINGTON AN ORDINANCE of the City of Bremerton, Washington, providing for the issuance, specifying the maturities and maximum effective interest rate, and fixing the form of $450,000.00 par value of "General Obligation Bonds, 1976," authorized by the qualified voters of the City at a special election held on November 5, 1974, in conjunction with .the State general election held on the same date, pursuant to Ordinance No. 3163 of the City Council passed on September 20, 1974; creating a special bond redemption fund; and providing for the sale of such bonds~ and declaring an emergency. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, as follows: Section 1. The City of Bremerton, Washington (hereinafter called the "City"), shall presently issue and sell $450,000.00 par value, being the total par value of negotiable general obligation bonds authorized by the qualified voters of the City at a special election held on November 5, 1974, in conjunction with the State general election held on the same date, pursuant to Ordinance No. 3163 of the City Council passed on September 20, 1974, for the purpose of providing the City's share of the funds required to construct and equip a headquarters library building, including the purchase of new books therefor, on land acquired therefor, in conjunction with the Rural Library District of Kitsap County, Washington. The bonds shall be dated April 1, 1976, shall be in denominations of $5,000.00 each, shall be numbered from 1 to 90, inclusive, and shall bear interest at a rate or rates not to exceed an effective rate of 8% per annum, as evidenced by interest 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 or rates from and after maturity until said 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 Treasurer of the City, or, at the option of the holder thereof, at either fiscal agency of the State of Washington in the Cities of Seattle, Washington, or New York, New York. The bonds shall be payable serially over a period of from two to twenty years from the date of issue and shall mature in order of their numbers as follows: Bond Numbers (Inclusive) Amounts Maturities 1 to 3 $15,000 April 1, 1978 4 to 6 15,000 April 1, 1979 7 to 9 15,000 April 1, 1980 10 to 12 15,000 April 1, 1981 13 to 15 15,000 April 1, 1982 16 to 19 20,000 April 1, 1983 20 to 23 20,000 April 1, 1984 24 to 27 20,000 April 1, 1985 28 to 31 20,000 April 1, 1986 32 to 35 20,000 April 1, 1987 36 to 40 25,000 April 1, 1988 41 to 45 25,000 April 1, 1989 46 to 50 25,000 April 1, 1990 51 to 56 30,000 April 1, 1991 57 to 62 30,000 April 1, 1992 63 to 68 30,000 April 1, 1993 69 to 75 35,000 April 1, 1994 76 to 82 35,000 April 1, 1995 83 to 90 40,000 April 1, 1996 Section 2. The City reserves the right to redeem any or all of the outstanding bonds of this issue in inverse numerical order, highest numbers first, on any semiannual interest payment date from April 1, 1986, through October 1, 1989, at $100.50 per each $100.00 par value thereof, plus accrued interest, and on April 1, 1990, or on any semiannual interest payment date thereafter, at par, plus accrued interest, by publishing notice of such intended redemption in the official newspaper of the City at least once not less ~han thirty nor more than forty-five days prior to the call date, and by mailing a copy of such notice within the same period to the original purchaser or the account manager of the underwriter who purchases the bonds. 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 corporations shall not be a condition precedent -2- '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 redemption fund for such bonds. Section 3. The City hereby 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 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 4. The bonds shall be in substantially the following form: No. $5,000.00 UNITED STATES OF AMERICA STATE OF WASHINGTON CITY OF BREMERTON GENERAL OBLIGATION BOND, 1976 % KNOW ALL MEN BY THESE PRESENTS: That the City of Bremerton (the "City"), State of Washington, for value received, promises to pay to bearer on the FIRST DAY OF APRIL, 19 .., the principal sum of FIVE THOUSAND DOLLARS together with interest thereon at the rate of % per annum, until fully paid, payable on October 1, 1976, and semiannually thereafter on the first days of April and October of each year, with 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 pa~able, both principal and interest, in lawful money of the United States of America at the office of the Treasurer of the City, or, at the option of the holder, at either fiscal agency of the State of Washington in the Cities of Seattle, Washington, or New York, New York. This bond is one of an issue of $450,000.00 of bonds of like date, tenor and effect, except as to maturities [and interest rates if more than one interest rate is bid], and is issued by the City pursuant to a special election authorizing the same for strictly municipal capital purposes, other than -3- the replacement of equipment, to-wit, for the purpose of providing the funds to pay the City's share of the cost of constructing and equipping of a headquarters library building on land acquired therefor in conjunction with Rural Library District of Kitsap County, Washington, all as Drovided in Ordinance No. ~__~ of the City Council passed January 28, 1976, and is issued in full compliance with the ordinances of the City and the laws and Constitution of the State of Washington. The City reserves the right to redeem any or all of the outstanding bonds in inverse numerical order, highest numbers first, on any semiannual interest payment date from April 1, 1986, through October 1, 1989, at $100.50 per each $100.00 par value thereof, plus accrued interest, and on April 1, 1990, or on any semiannual interest payment date thereafter, at par, plus accrued interest, by publishing notice of such intended redemption in the official newspaper of the City at least once not less than thirty nor more than forty-five days prior to the call date, and by mailing a copy of such notice within the same period to [the original purchaser or the account manager of the underwriter who purchases the bonds]. 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 corpora- tions 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 redemption fund. The City hereby 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 to pay the principal of and interest on the bonds. 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 happened and have been performed as required by law, and that the total indebtedness of the City, including 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 said officials this first day of April, 1976. CITY OF BREMERTON, WASHINGTON By (facsimile signature) Mayor ATTEST: City Clerk -4- The form of the interest coupons shall be substantially as follows: Coupon No. $ On the FIRST DAY OF (APRIL) (OCTOBER), 19 , the CITY OF BREMERTON, WASHINGTON, upon presentation and surrender of this coupon will pay to the bearer at the office of the Treasurer of the City of Bremerton, Washington, or, at the option of the holder, at either fiscal agency of the State of Washington in the Cities of Seattle, Washington, or New York, New York, the amount shown hereon in lawful money of the United States of America, said sum being the semiannual interest due that date on its "General Obligation Bond, 1976," dated April 1, 1976, and numbered . CITY OF BREMERTON, WASHINGTON By (facsimile ~i~nature) Mayor ATTEST: (facsimile ~ignature) City Clerk Section 5. The bonds shall be printed or lithographed on good Dond paper and shall be signed by the facsimile 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 6. There is hereby created and established in the office of the City Treasurer a special fund to be known and designated as the "General Obligation Bond Fund, 1976," for the payment of the principal and interest on the bonds, into which fund shall be paid the accrued interest received from the sale of the bonds, together with all taxes collected for the payment of the principal of and interest on the bonds. Section 7. 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 -5- newspaper of the City and a short form of 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 the bids for the purchase of the bonds shall be received by the City Clerk of the City at his office in the City Hall on March 10, 1976, up to 11:00 o'clock a.m. (PST), and such bids will be publicly opened and considered by the City Council at a reKula~ meeting thereof to be held on the same date commencing at 11:30 o'clock a.m. (PST). Such notice shall be in the form attached hereto, made a part hereof, and marked "Exhibit A," to which reference is made for the terms and conditions of bid for and sale of the bonds. 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. The 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. Section 8. This ordinance is necessary for the immediate preservation of public peace, health and safety since the proceeds of such bonds are urgently needed for the purposes of such issue, and this ordinance shall, therefore, become effective immediately after its passage, approval and publication as provided by law. PASSED UNANIMOUSLY BY THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, at a regular open public meeting thereof this 28th day of January, 1976. ATTEST: ~ C~ Clerk APPROVED AS TO FORM: Attorney Date of Publication: --6-- NOTICE OF BOND SALE CITY OF BREMERTON, WASHINGTON GENERAL OBLIGATION BONDS, 1976 $450,000.00 SEALED PROPOSALS will be received at the office of the City Clerk at the City Hall, Bremerton, Washington, until 11:00 o'clock a.m. (PST) on MARCH 10, 1976 and such bids will be publicly opened and considered by the City Council at a regular meeting to be held in the C '' Chambers in the City Hall on the same date commencing at 11:30 o'clock a.m. (PST) for the purchase of $450,000.00 par value of "General Obligation Bonds, 1976," of the City of Bremerton, Washington, authorized to be issued pursuant to a special election and Ordinances Nos. 3163 and 3~ , for strictly municipal capital purposes, other than the replacement of equipment, to-wit, for the purpose of providing the funds to pay the City's share of the cost of constructing and equipping of a headquarters library building on land acquired therefor in conjunction with Rural Library District of Kitsap County, Washington. The bonds will be dated April 1, 1976, will be in denominations of $5,000.00 each, will be numbered from 1 to 90, inclusive, will bear interest at an effective rate not exceeding 8% per annum, payable on October 1, 1976, and semiannually thereafter on April 1 and October 1 of each year, interest to maturity to be evidenced by coupons to be attached to the bonds, will be payable, both principal and interest, at the office of the Treasurer of the City of Bremerton, Washington, or, at the option of the holder thereof, at either fiscal agency of the State of Washington in the Cities of Seattle, Washington, or New York, New York, and will mature serially as follows: Bond Numbers (Inclusive) Amounts Maturities 1 to 3 $15,000 April 1, 1978 4 to 6 15,000 April 1, 1979 7 to 9 15,000 April 1, 1980 10 to 12 15,000 April 1, 1981 13 to 15 15,000 April 1, 1982 16 to 19 20,000 April 1, 1983 20 to 23 20,000 April 1, 1984 24 to 27 20,000 April 1, 1985 28 to 31 20,000 April 1, 1986 32 to 35 20,000 April 1, 1987 36 to 40 25,000 April 1, 1988 41 to 45 25,000 April 1, 1989 46 to 50 25,000 April 1, 1990 51 to 56 30,000 April 1, 1991 57 to 62 30,000 April 1, 1992 63 to 68 30,000 April 1, 19~3 69 to 75 35,000 April 1, 1994 76 to 82 35,000 April 1, 1995 83 to 90 40,000 April 1, 1996 The City has reserved the right to redeem any or all of the outstanding bonds of this issue in inverse numerical order, highest numbers first, on any semiannual interest payment date from April 1, 1986, through October 1, 1989, at $100.50 per each $100.00 par value thereof, plus accrued interest, and on April 1, 1990, or on any semiannual interest payment date thereafter, at par, plus accrued interest, by publishing notice of such intended redemption in the official newspaper of the City at least once not less than thirty nor more than forty-five days prior to the call date, and by mailing a copy of such notice within the same period to the original purchaser or the account manager of the underwriter who purchases the bonds. 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 corporations 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 redemption fund for suck bonds. The interest rate or rates for the bonds shall be fixed by the City Council · after the bonds have been sold. -2- The City, by Ordinance No. ~~, has irrevocably pledged itself to levy taxes annually, without limitation as to rate or amount, upon all property in the City subject to taxation in an amount sufficient 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 have been irrevocably pledged for the payment of the principal of and interest on said bonds. Bidders are invited to name the rate or rates of interest which the bonds are to bear, not exceeding an effective rate of 8% per annum. Bidders shall 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 1/8 or 1/10 of i%, or both. No more than one rate of interest may be fixed for any one maturity. Only one coupon will be attached ~o each bond for each installment 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 provided by law, and no bid for less than all of the bonds will be considered. --3-- 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 $22,500.00. The deposit shall be either cash or certified or cashier's check made payable to the Treasurer of the City, which 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-five days following the acceptance of its bid, the amount of its 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 the bonds for not less than par plus accrued interest and such bids are the best bids received, the City Council-will 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 of Bremerton or in the City of Seattle at the expense of the City, or at such other place as ~he Treasurer of the City and the successful bidder may mutually agree upon at the purchaser's expense. Delivery will be made in Federal'Funds within forty-five days of the bond sale. 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 considered. It is understood that if, prior to the delivery of the bonds, the income 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 City will cause the bonds to be printed or lithographed and signed without expense to the successful bidder. The approving legal opinion of Messrs. Roberts, Shefelman, Lawrence, Gay &Moch, attorneys, Seattle, Washington, will be --4-- furnished to the purchaser of the bonds without cost to the purchaser, which legal opinion will be printed on each bond, and a no-litigation certificate will be included in the closing papers. Information concerning the bonds may be received upon request made to the undersigned or to Foster & Marshall Inc., the City's financial consultants, at 205 Columbia Street, Seattle, Washington. ~ DATED at Bremerton, Washington, this day of January, 1976. G. C. YE Clerk Publication Dates: February 11, 1976 February 18, 1976 February 25, 1976 -5-