HomeMy WebLinkAbout3494 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 $710,000 par value of "Unlimited General
Obligation Bonds, 1979," authorized by the qualified
voters of the City at a special election held on
November 7, 1978, in conjunction with the general
State election held on the same date, pursuant to
Ordinance No. 3454 passed and approved August 29,
1978; creating a special bond redemption fUnd;
creating a fire equipment acquisition and station
construction fund; providing for the sale of such
bonds; and declaring an emergency.
WHEREAS, pursuant to Ordinance No. 3454 passed and approved
on August 29, 1978, the City Council of the City of Bremerton,
Washington, determined that two additional firepumpers and construc-
tion of a fire station were needed by the City Fire Department;
and
~HEREAS, in order to provide funds for such acquisitions and
construction the City Council provided for the submission to the
qualified electors of the City the following proposition for accep-
tance or rejection at a special election to be held on No~ember 7',
1978, in conjunction with the State general election to be held that
date:
"FIRE EQUIPMENT AND STATION BONDS - $710,000
Shall the City issue and sell up to $710,000 of general
obligation bonds to acquire two firepumpers and to construct
a fire station, such bonds to be paid by annual property tax
levies, to be made without limitation as to rate or amount
and to mature.serially in from two %o twenty years from date
of issue, as provided in Ordinance No. 3454.
BONDS, YES ............................ /-----~
BONDS, NO ............................ 7----7"; and
WHEREAS, the proposition received the approval of the
requisite percentage of the requisite number of electors; and
WHEREAS, the City Council determines that it is necessary
to issue the entire $710,000 par value of authorized bonds; NOW,
THEREFORE,
THE CITY OF BREMERTON, WASHINGTON, DOES ORDAIN as follows:
Section 1. The City of Bremerton, Washington (the "citY"),
shall presently issue and sell $710,000 par value, being the total
par value, of negotiable unlimited general obligation bonds (the
"Bonds") authorized by the qualified voters of the City at a
special election held on November 7, 1978, in conjunction with the
general State election held on the same date, pursuant to Ordinance
No. 3454 passed and approved August 29, 1978, for the purpose of
providing funds to pay the cost of acquiring two firep~mpers and to-
construct a fire station. The Bonds shall be dated April 1, 1979,
shall be in denominations of $5,000 each, shall be numbered from 1
to 142, inclusive, and shall bear interest at a rate or rates not
to exceed an effective rate of 7% per ann~, payable on October 1,
1979, and semiannually thereafter on April 1 and October 1 of each
year as evidenced by interest coupons to be attached to the Bonds
representing interest to maturity, with full obligation on the part
of the City to pay interest at the same rate or rates from and
after maturity until the Bonds, both principal and intereSt, are
paid in full. Both principal and interest are to be paid in lawful
money of the United States of ~erica at the office of the Treasurer
of the City or, at the option of the holder, at either fiscal
agency of the State of Washington in Seattle, Washington, or
New York, New York. The Bonds shall be payable serially and shall
mature on April 1 of each year in order of their numbers as follows
(based on an assumed interest rate of 6.25% per annum):
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Bond Numbers Amounts Maturity
(Inclusive) ($,000) Years
1 to 4 20 1981
5 to 8 20 1982
9 to 13 25 1983
14 to 18 25 1984
19 to 23 25 1985
24 to 29 30 1986
30 to 35 30 1987
36 to 41 30 1988
42 to 48 35 1989
49 to 55 35 1990
$6 to 63 40 1991
64 to 71 40 1992
72 to 79 40 1993
80 to 88 45 1994
89 to ~98 50 1995
99 to 108 50 ~ 1996
109 to 119 55 1997
120 to 130 55 1998
131 to 142 60 1999
Section 2. The City reserves the right to redeem the Bonds
whole, or in part in inverse numerical order, from money
derived from any source on April 1, 1989, or on any semiannual
interest payment date thereafter at par, plus accrued interest to
of reder~ption.
Notice of such intended redemption shall be given by
publication thereof in the official newspaper of the City at
once not less than 30 nor more than 45 days prior to the
date. Written notice shall also be given to the principal
underwriter who purchases the Bonds within the same period. Such
redemption notice shall also be sent to Moody's Investors Service,
and Standard & Poor's Corporation, which are rating corpora-
tions, at their offices in New York, New York, but the mailing of
notice to these rating corporations shall not be a condition
precedent to the redemption of such Bonds.
Interest on any Bonds so called for redemption shall cease
the date fixed for such redemption upon payment of the redemp-
price into the bond fund from which the Bonds are to be paid.
The City reserves tke right to purchase any or all of the
in the open market at any time at a price not in excess of
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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 the Bonds.
The City further covenants that it will neither make nor
permit the use of the proceeds of the Bonds or other funds of
the City at any time during the term of the Bonds which, if such
use had been reasonably expected at the date the Bonds are issued,
would cause the Bonds to be arbitrage bonds within the meaning
of §103(c) of the United States Internal Revenue Code of 1954, as
amended, and applicable regulations promulgated thereunder.
Section 4. The Bonds shall be in substantially the
following form:
No. $5,000...~
UNITED STATES OF AMERICA
STATE OF WASHINGTON
CITY OF BREt-~RTON
UNLIMITED GENERAL OBLIGATION BOND, 1979
%
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,-~9, and
semiannually thereafter on April 1 and October 1 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 payable, 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 Seattle, Washington,
or New York, New York.
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This bond is one of a~ issue of $710,000 of bonds (the
"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 muni-
cipal capital purposes, other than the replacement of
equipment; to acquire two firepumpers and to construct a
fire station, and to pay the cost of issuing the Bonds,
as proVided in Ordinances Nos. 3454 and ~.~ , passed and
approved August 29, 1978, and February 20, 1979, respec-
tively, and is issued in full compliance with the ordi-
nances of the City and the laws and Constitution of the
State of Washington.
The City reserves the right to redeem the Bonds as a
whole, or in part in inverse numerical order, from ~money
derived from any source on April 1, 1989, or on any semi-
annual interest payment date thereafter, at par.plus
accrued interest to date of redemption.
Notice of such intended redemption shall be given
by publication thereof in the official newspaper of
the City at least once not less than 30 nor more than
45 days prior to the call date. Written notice shall
also be given to [the principal underwriter who purchases
the bonds] within the same period. In addition, such
redemption notice shall also be sent to Moody's Investors
Service, Inc., and Standard & Poor's Corporation, which
are rating corporations, at their offices in New York,
New York, but the mailing of such notice to these rating
corporations shall not be a condition precedent to the
redemption of such Bonds. Interest on any Bonds so called
for redemption shall cease on the date fixed for such
redemption upon payment of the redemption_price into the
bond fund from which this bond is to be paid.
The City 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.
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 the Bonds,
does not exceed any constitutional or statutory limita-
tions.
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 signa-
tures of such officials this first day of April, 1979.
CITY OF BREMER?ON, WASHINGTON
By (facsimile signature)
ATTEST: ~yor
City Clerk
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The form of the interest coupons shall be substantially as
follows:
Coupon No.
$
(Unless the bond referred to herein shall have been'
previously redeemed)
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, 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 amount shown hereon in lawful
money of the United States of America such sum being
the interest due that date on its "Unlimited General
Obligation Bond, 1979," dated April 1, 1979, and
numbered .
CITY OF BREMERTON, WASHINGTON
By (facsimile signature)
Mayor
ATTEST: - --
(facsimile signature)
City Clerk
Section 5. 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
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 Treasurer of the City a special fund to be known
and designated as the "General Obligation Bond Fund, 1979," for
the payment of the principal of 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 paY-
ment of the principal of and interest on the Bonds.
Section 7. There is hereby created and established in the
office of the Treasurer of the City a special fund to be known
and designated as the "1979 Fire Equipment Acquisition and Station
Construction Fund," into which fund shall be paid the principal pro-
ceeds received from the sale of the Bonds and shall be used for the
purposes for which the Bonds are issued including the cost of issuing the
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Bonds. Any money remainin~ i~such accouht, including investment
income therefrom (subject to the covenant set forth in Section 3
hereof), after such authorized acquisitions have been carried out
and completed, shall be transferred to the "General Obligation Bond
Fund, 1979" as provided in RCW 35.22.590.
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
newspaper of the City and a short abbreviated 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 in
the Council Chambers of the City Hall on March '~0, 1979, at 11:00
o'clock a.m. and will be considered by the City Council at a meeting
thereof to be held in the Council Chambers on the same date commencing
at that time.
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.
Bidders are invited to name the rate or rates of interest
which the bonds are to bear, not exceeding an effective rate of
7% per annum. Bidders shall submit a bid specifying:
(a) The low~st rate or rates of interest and premium,
if any, above par at which the bidder will purchase the
bonds; or
(b) ?he lowest rate or rates of interest at which
the bidder will purchase the bonds at par.
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No bid will be considered-for the B~ds 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 1/20 of 1%, or
bo~h. 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
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 o'~ the Bonds will be
considered. The City reserves the right to waive any informality
or 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
$35,500. 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 com-
plete the purchase of the Bonds within forty days following the accep-
tance of its bid, t~e 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 not
less than par plus accrued interest and such bids are the best bids
-8-
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 included 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
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 obliga-
tion to purchase the Bonds, and in such case the deposit accompany-
ing 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.
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 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 issuer; provided,
however, that the fee of the CUSIP Service Bureau for the assignment
of the numbers shall be the responsibility of and shall be paid for
by the purchaser.
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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 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. The Bond opinion shall state that bond counsel expresses
no opinion on the completeness or accuracy of any official statement,
offering circular or other sales material relating to the issuance
of the Bonds prepared by the City or its financial advisor or other-
wise used in connection with the Bonds. A no-litigation certificate
will be included in the closing papers. Such notice shall also pro-
vide that information regarding the details of such Bonds may be
received upon request made to the City Clerk, City Hall, 239 Fourth
Street, Bremerton, Washington 98310, or to First Washington Corpora-
tion, the City's financial consultant, 1411 Fourth Avenue Building,
Seattle, Washington 98101.
Section 9. The City Council finds and declares that an emergency
exists and that the i~nediate passage of this ordinance is necessary
for the health, safety and welfare of the inhabitants of the City.
Accordingly, this ordinance shall become effective immediately upon
.its passage, signing and attestation, and publication.
PASSED unanimously by the City Council of the City of
Bremerton, Washington at a regular open public meeting thereof,
signed by the Mayor, and attested by the City Clerk in authentication
of such passage, this 20th day of February, 1979.
CITY OF BP~RTON, WASHINGTON
ATTEST: ~yor
~ity Clerk
APPROVED AS TO FORM:
~i ty/At to'rney
Date of Publication: February 22, 1979
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I, KATHLEEN L. ~v~DIO, Clerk of the City of BrerL]erton,
Washington, hereby certify that the attached copy of Ordinance
No. ~ is a true and correct copy of the original.ordinance
passed on the 20th day of Februa~, 1979, as that ordinance
appears on the Minute Book of the City.
DATED this ~ day of February, 1979.
~LEEN L. ~DIO, City Clerk