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HomeMy WebLinkAbout22790 FR'_ 00 A ORDINANCE NO. AN ORDINANCE of the City of Kent, Washington, relating to the acquisition of property; providing for the issuance, spec- ifying the maturities, maximum effective interest rate, terms and covenants, of $1,180,OUO par value of limited tax general obligation bonds of the City for strictly City purposes to provide funds with which to pay the costs of acquiring Colony Park Golf Course and the issuance of such bonds; establishing a Golf Course Enterprise fund; providing for the sale of such bonds; and ratifying actions of City officers. WHEREAS, the City of Kent,Washington (hereinafter cal- led the "City") plans to acquire the Colony Park Golf Course, the estimated cost of which, including the cost of financing thereof, is $1,180,000, and the City does not have available sufficient funds to pay the cost; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. The assessed valuation of the taxable property of the City as ascertained by the last preceding assess- ment for City purposes for the calendar year 1981 is $1,432,492,71: and the City has outstanding general indebtedness evidenced by limited tax general obligation bonds of $2,495,000 and by condi- tional sales contracts in the amount of $91,500.86 incurred with- in the limit of up to 3/4 of 1% of the value of the taxable prop- erty within the City permitted for general municipal purposes with out a vote of the qualified voters therein, and has a general in- debtedness outstanding evidenced by unlimited tax general obliga- tion bonds in the principal amount of $1,174,000 issued pursuant to a vote of qualified voters of the City for capital purposes and the amount of indebtedness for which bonds are herein authorized to be issued is $1,180,000. Section 2. The City shall borrow money on the credit of the City and issue negotiable limited tax general obligation bonds evidencing such indebtedness in the amount of $1,180,000 for general City purposes to provide the funds to pay the costs of acquiring the Colony Park Golf Course pursuant to the terms set forth in a Mortgage and Payment Contract, dated 3, 1981, on file with the City Clerk and to pay the cost of the is- suance of Bonds. Such general indebtedness to be incurred shall be within the limit up to 3/4 of l% of the value of the taxable property within the City permitted for general municipal purposes without a vote of the qualified voters therein. Section 3. The Bonds shall be called "Limited Tax General Obligation Bonds, 1981" (the "Bonds"), of the City; shall be dated April 1, 1981; shall be in the denomination of $5,000 each; shall be numbered from 1 to 236, 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 April 1, 1982, and semiannually thereafter on each succeeding October and April 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 principal and interest, shall have been paid in full or until sufficient money for such payment in full is on deposit in the "Golf Course Enterprise Fund", hereinafter created and such Bond has been duly called for payment. Both principal of and interest on the Bonds are to be paid in lawful money of the United States of America, which at the time of pay- ment 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 Bonds shall mature serially, annually, in order of their numbers in the fol- lowing amounts on April 1 of each of the following years (such maturity schedule being computed at an assumed interest rate of 9.75% per annum): Bonds Numbers Maturity (Inclusive) Amounts Years 1 to 6 $ 30,000 1983 7 to 11 25,000 1984 12 to 17 30,000 1985 18 to 23 30,000 1986 24 to 30 35,000 1987 31 to 38 40,000 1988 39 to 46 40,000 1989 47 to 55 45,000 1990 56 to 65 50,000 1991 66 to 76 55,000 1992 77 to 88 60,000 1993 89 to 101 65,000 1994 102 to 115 70,000 1995 116 to 131 80,000 1996 132 to 148 85,000 1997 149 to 167 95,000 1998 168 to 188 105,000 1999 - 2 - 189 to 211 115,000 2000 212 to 236 125,000 2001 The City reserves the right to redeem any or all of the Bonds prior to their stated maturity dates as a whole, or in part in inverse numerical order, on April 1, 1991, or any semi- annual interest payment date thereafter at par plus accrued inter- est 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, or, if there is no official newspaper, then in a news- paper of general circulation in the City, and a copy of such no- tice 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 redemp- tion 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 Redemption Account of the Golf Course Enterprise 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 4. The City irrevocably pledges itself to .levy taxes annually, within the constitutional and statutory tax limiations provided by law without a vote of the electors of the City, upon all property 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 accrue, and the full faith, credit and resources of the City have been irrevocably pledged for the pay- ment of the principal of and interest on the Bonds. Section 5. 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 States Internal Revenue Code of 1954, as amended, and applicable regulations promulgated thereunder. Section 6. The Bonds and coupons shall be printed or - 3 - lithographed on good bond paper in a form consistent with the pro- visions of this ordinance. The Bonds shall be signed by the facsimile signature of the Mayor and attested by the manual signa- ture of the City Clerk, and a facsimile reproduction of the seal of the City shall be printed thereon, and the coupons shall bear the facsimile signatures of the Mayor and the City Clerk. Section 7. The Golf Course Enterprise Fund is created and established by the City Finance Department. The accrued inter- est and premium received, if any, upon the sale and delivery of the Bonds shall be paid into this fund and segregated into a Bond Redemption Account for the purpose of bond redemption. The prin- cipal proceeds received from the sale and delivery of the Bonds shall also be paid into this fund and segregated into an acquisitil account for the purposes specified in Section 2 of this ordinance. Pending the receipt of the principal proceeds from the issuance of the Bonds, interest bearing warrants, bearing interest to be negotiated by the Director of Finance but not to exceed 4 % may be drawn on the Golf Course Enterprise Fund to provide inter- im funds to pay such acquisition costs. 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 and expended, in the first instance, for completing the committments of acquisition and when this is complete, for any lawful purpose of this fund. Subsequent monies collected by or allocated to this fund must be used in the first instance for the payment on the principal of and interest on the Bonds. Section 8. The Bonds shall be sold for cash at public sale for not less than par, plus accrued interest, and may be combined into any authorized issue for the purpose of sale. The City 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 'circulation in the City, and a short abbreviated form of such no- tice shall also 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 spec- ify that sealed bids for the purchase of the Bonds shall be re- ceived by the City Clerk in her office in the City Hall on April 20, 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 - 4 - Chambers commencing at 8:OO p.m., local time, on the same date. 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 Bonds with fixed maturities in accordance with the schedule specified in Section 3 hereof. The notice shall specify the maximum effective rate of interest the Bonds shall bear, namely, 1-2% per annum, and shall require bidders to submit a bid specifying: (a) The lowest rate or rates of interest and premium, if any:k- 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 1/8th 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 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 inter- est cost over the life of the Bonds and the net effective inter- est 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 $59,000. 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 deliv- - 5 - ery and the successful bidder shall fail or neglect to complete the purchase of the Bonds within forty days following the accept- ance 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 purchase price plus accrued interest to the date of delivery, less the amount of the good faith de- posit, at the office of the City Treasurer or in Seattle, Washing- ton, 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 re- quested in the bid of the successful bidder, but neither failure b 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 City; but the fee of the Cusip Service Bureau for the assign- ment 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 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 bud 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, Shafelman, Lawrence, Gay & Moch, bond counsel of Seattle, Washing- ton, covering the Bonds without cost to the purchaser, the opinion also being printed on each bond. Bond counsel shall not be re- quired to review or express any opinion concerning the complete- Iness 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 notice shall also provide that further information regarding the details of the Bonds may be received upon request made to Foster & Marshall Inc., 205 Columbia Street, Seattle, Washington, the City's financial consultant. Section 9. The City Council approves, ratifies and confirms the Mortgage and Payment Contract, dated Sze; " 1981, for the acquisition of the Colony Park Golf Course on file with the City Clerk, authorizes the Mayor to execute the same on behalf of the City, and directs that the City make such acquisi- tion pursuant to the terms of that contarct. Section 10. This Ordinance shall take effect from and after its passage and five (5) days following its publication las required by law. PASSED by the City Council and APPROVED by the Mayor of the City of Kent, Washington, at a regular open public meeting thereof, this second day of March, ,].,981. k7 ISA EL HOGAN, MAY R ATTEST: MARIE JENSEN, TY CLE,K ROVED AS TO FORM: NVJA c DONALD E. MIRK, ITY ATTORNEY PASSED the day of March, 1981. APPROVED the day of March, 1981. PUBLISHED the day of March, 1981. I hereby certify that this is a true copy of Ordinance No. , passed by the City Council of the City of Kent, Washington, and approved by the Mayor of the City of Kent as here- on indicated. rA - 7 - (SEAL)