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HomeMy WebLinkAbout1676CITY OF KENT, WASHINGTON ORDINANCE NO. AN ORDINANCE of the City of Kent, Washington, providing for (a) the improvement of James Street from the West Valley Highway to Benson Road and other streets and avenues within the City by widening, installing curbs, gutters, signals, storm drains, channelization and beautification, (b) the completion of the new City Hall and (c) the completion of certain water projects specified and adopted by Ordinance No. 1408; declaring the estimated cost thereof as near as may be; providing for the issuance and sale of $1,300,000.00 par value of "General Obligation Bonds, 1970," of the City to pay the cost thereof; specifying the maturities and fixing the form and maximum effec- tive interest rate of such bonds; establishing a "General Obligation Bond Fund, 1970"; and providing for the sale of such bonds. WHEREAS, the City is in urgent need of making improvements to James Street from the West Valley Highway and Benson Road and certain other streets and avenues within the City as hereinafter described, the estimated cost of which is $600,000.00, and the City does not have available sufficient funds to meet the total estimated cost thereof; and WHEREAS, the proceeds from the sale of the $1,130,000.00 par value of "General Obligation Bonds, 1968," issued by the City under date of May 1, 1968, pursuant to Ordinances Nos. 1493 and 1498, for the purpose of acquiring real properties and constructing a new Kent City Hall, are insufficient to complete such new Kent City Hall in the amount of approximately $400,000.00; and WHEREAS, the moneys available to complete the construction and installation of the two 6,000,000 -gallon ground storage reservoirs, the improvements to the existing water supply and the intake at Clark Springs, the consttuction and installation of a new roof structure on the existing 3,000,000 -gallon reservoir located at Kensington Avenue and Seattle Street and the construction and installation of transmission water mains as specified and adopted in Ordinance No. 1408, passed by the City Council and approved by the Mayor on November 7, 1966, are insufficient in the amount of approximately $300,000.00; and WHEREAS, the assessed valuation of the taxable property of the City of Kent as ascertained by the last preceding assessment for City purposes for the calendar year 1970 is $67,341,466.00 and at the time of the passage of this ordinance the existing outstanding general indebtedness consists of $280,000.00 par value of general obligation bonds issued within the limit up to 1-1/2% of the valuation of the taxable property within the City permitted without a vote of the electors and $1,090,000.00 par value of general obligation bonds issued within the limit up to 50 of the value of the taxable property within the City (being twice the assessed valuation thereof) permitted pursuant to a vote of the electors within the City for general municipal capital purposes and the amount of indebtedness for which bonds are herein authorized to be issued is $1,300,000.00; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DO ORDAIN, as follows: Section 1. The City of Kent shall: A. Improve the following streets and avenues by widening, installing curbs, gutters, signals, storm drains, channelization and beautification, to -wit: On From To James Street W. Valley Highway (SR 181) Benson Road (SR 515) 4th Avenue Harrison Street S. 228th Street S. 212th Street E. Valley Highway (84th E. City Limits Avenue S.) B. Complete the construction of the new Kent City Hall, all as provided in Ordinances Nos. 1493 and 1498. C. Complete the construction and installation of the two 6,000,000 -gallon ground storage reservoirs, complete the improvements to the existing water supply and the intake at Clark Springs, complete the construction and installation of a new roof structure on the existing 3,000,000 -gallon reservoir located at Kensington Avenue and W -C Seattle Street, and complete the construction and installation of the transmission water mains, all as specified and adopted in Ordinance No. 1408, passed by the City Council and approved by the Mayor on November 7, 1966. Section 2. The estimated cost of the foregoing, including the cost of the issuance of general obligation bonds herein authorized, is hereby declared to be, as near as may be, the sum of $1,300,000.00. The City shall borrow money on the credit of the City and issue negotiable general obligation bonds evidencing such indebtedness. Such general indebtedness to be incurred shall be within the limit up to 1-1/2% 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 "General Obligation Bonds, 1970," of the City of Kent, Washington, shall be dated October 1, 1970, shall be in denominations of $5,000.00 each, shall be numbered from 1 to 260, inclusive, and shall bear interest at an effective rate not to exceed 8% per annum, payable semiannually on April 1 and October 1 of each year, as evidenced by coupons 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 Kent, Washington, or, at the option of the bondholder, at the fiscal agency of the State of Washington in New York, New York. The bonds shall mature serially in order of their numbers on October 1 in the years and amounts as follows: Years Amounts 1972 $ 35,000 1973 35,000 1974 40,000 1975 40,000 1976 45,000 1977 45,000 1978 50,000 1979 55,000 1980 60,000 1981 65,000 1982 70,000 -3- Years Amounts 1983 $ 75,000 1984 80,000 1985 85,000 1986 90,000 1987 95,000 1988 105,000 1989 110,000 1990 120,000 Section 4. The City reserves the right to redeem any or all of the outstanding bonds at par, plus accrued interest, on any semiannual interest payment date, on or after October 1, 1980, in inverse numerical order, highest numbers first, 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. Notice of such intended redemption shall also be mailed to the principal underwriter or manager of the account of the successful bidder at its principal place of business not more than forty-five nor less than thirty days prior to the call date. In addition, such redemption notices shall also be sent to Moody's Investors Service, Inc., and Standard & Poor's Corporation, at their offices in New York, New York. 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 redemption fund. Section 5. The City of Kent 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 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 such bonds. Section 6. The bonds shall be substantially in the following form: Ws No. UNITED STATES OF AMERICA STATE OF WASHINGTON CITY OF KENT GENERAL OBLIGATION BOND, 1970 $5,000.00 0 KNOW ALL MEN BY THESE PRESENTS: That the City of Kent, Washington, is justly indebted to and for value received hereby promises to pay to bearer on the FIRST DAY OF OCTOBER, 19,, the sum of FIVE THOUSAND DOLLARS together with interest thereon at the rate of PERCENT ( o) per annum, payable semiannually on April 1 and October 1 of each year, 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 of Kent, Washington, or, at the option of the bondholder, at the fiscal agency of the State of Washington in New York, New York. This bond is one of a total issue of $1,300,000.00 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 of Kent for general municipal purposes, to -wit, for the purpose of providing funds (a) to improve James Street from the West Valley Highway to Benson Road and certain other streets and avenues within the City by widening, installing curbs, gutters, signals, storm drains, channelization and beautification, (b) to complete the new City Hall and (c) to complete certain water projects specified and adopted by Ordinance No. 1408, and issued in full compliance with the ordinances of the City of Kent and the laws and constitution of the State of Washington. The City of Kent has reserved the right to redeem any or all of the outstanding bonds of this issue at par, plus accrued interest, on any semiannual interest payment date, on or after October 1, 1980, in inverse numerical order, highest numbers first, 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. Notice of such intended redemption shall also be mailed to [the original purchaser or the account manager of the underwriters who purchase the bonds] not more than forty-five nor less than thirty days -5- follows: prior to the call date. In addition, such redemp- tion notices shall also be sent to Moody's Investors Service, Inc., and Standard & Poor's Corporation, at their offices in New York, New York. 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 redemption fund. The City of Kent 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 to pay the principal of and interest on the bonds of this issue 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 said 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 hap- pened 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 of Kent, Washington, 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 at- tached to be signed with the facsimile signatures of those officials this first day of October, 1970. CITY OF KENT, WASHINGTON By (facsimile signature) Mayor ATTEST: City Clerk The form of the interest coupons shall be substantially as Coupon No. On the FIRST DAY OF (APRIL)(OCTOBER), 19_, the CITY OF KENT, WASHINGTON, upon presentation and surrender of this coupon, will pay to the bearer at the office of the City Treasurer, or, at the option of the holder, at the fiscal agency of the State of Washington in New York, New York, the sum shown hereon in lawful money of the United States of America, said sum being the semiannual interest due that date upon its "General Obligation Bond, 1970," dated October 1, 1970, and numbered CITY OF KENT, WASHINGTON By (facsimile signature) Mayor W-15 ATTEST: (facsimile signature) City Clerk Section 7. 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 of Kent, Washington, under the seal of the City and the coupons shall bear the facsimile signatures of the Mayor and the City Clerk. Section 8. 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, 1970," of the City. The accrued interest received, if any, shall be paid into the "General Obligation Bond Fund, 1970"; $400,000.00 of the principal proceeds received from the sale of the bonds shall be paid into the "City Hall Construction Fund" of the City; $300,000.00 of the principal proceeds received from the sale of the bonds shall be paid into the "North Kent Water Con- struction Fund" of the City; and the balance of the principal proceeds received from the sale of the bonds shall be paid into the "Street Construction Fund" 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 "General Obligation Bond Fund, 1970." Section 9. 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 such bonds shall be published once a week for four consecutive weeks in the official newspaper of the City of Kent 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 purchase of the bonds shall be received by the City Clerk of the City of Kent at the Council Chambers of the City Hall of the City -7- on October 5, 1970, up to 7:00 o'clock p.m. (PDST), at which time all bids will be publicly opened for the purchase 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. Bids shall be invited for the purchase of the bonds with fixed maturities in accordance with the schedule specified in Section 3 of this ordinance. The Notice shall specify the maximum effective rate of interest the bonds shall bear, to -wit, 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. For the purpose of evaluating 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 such bid. 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 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%. The bonds shall be sold to the bidder making the best bid, subject to the right of the City Council of the City of Kent 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 considered. 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 $65,000.00. The deposit shall be either cash or by certified or cashier's check made payable to the City Treasurer of the City of Kent, 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 of Kent 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 shall determine by lot which bid will be accepted. The bonds will be delivered to the successful bidder at the office of the City Treasurer of the City of Kent or in the City of Seattle 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. 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. The City Clerk of the City of Kent 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 of Kent 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, said opinion also being printed on each bond. Such Notice shall further provide that information concerning the bonds may be received upon request made to the City Clerk, or to McLean & Company, Inc., the City's financial consultants, at 770 Commerce Street, Tacoma, Washington. Ms19 Section 9. This ordinance is declared to be one necessary for the immediate preservation of the public peace, property, health and safety of the people of the City of Kent, Washington. An emergency is hereby declared to exist and this ordinance is hereby declared to be in full force and effect from and after its passage, approval and publication as provided by law. PASSED by the City Council of the City of Kent, Washington, and APPROVED by its Mayor at a regular meeting thereof held on the 8th day of September, 1970. ATTEST: Cit Jerk i ,APPROVED: ' City Attorney Mayor Published t .is �t� Cay of ;eptember, , 1970. MAC NOTICE OF BOND SALE CITY OF KENT, WASHINGTON $1,300,000.00 GENERAL OBLIGATION BONDS, 1970 SEALED PROPOSALS will be received at the office of the City Clerk at the City Hall, Kent, Washington, until 7:00 o'clock p.m. (PDST) on OCTOBER 5, 1970 at which time said bids will be publicly opened and considered by the City Council in the Council Chambers in the City Hall for the purchase of the $1,300,000.00 par value of "General Obligation Bonds, 19//700," of the City of Kent, authorized to be issued by Ordinance No. IL, -2L for strictly municipal purposes, to -wit, for the purpose of providing funds (a) to improve James Street from the West Valley Highway to Benson Road and certain other streets and avenues within the City by widening, installing curbs, gutters, signals, storm drains, channelization and beautification, (b) to complete the new City Hall and (c) to complete certain water projects specified and adopted by Ordinance No. 1408, and paying the cost of the issuance of such general obligation bonds. The bonds will be dated October 1, 1970; will be numbered from 1 to 260, inclusive; will be in denominations of $5,000.00 each; will bear interest at an effective rate not exceeding 8% per annum, payable semiannually 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 Kent, Washington, or, at the option of the bondholder, at the fiscal agency of the State of Washington in New York, New York; and will mature serially in accordance with the following schedule, to -wit: Bond Numbers (Inclusive) Amounts Maturities 1 to 7 $ 35,000 October 1, 1972 8 to 14 35,000 October 1, 1973 15 to 22 40,000 October 1, 1974 23 to 30 40,000 October 1, 1975 31 to 39 45,000 October 1, 1976 40 to 48 45,000 October 1, 1977 49 to 58 50,000 October 1, 1978 59 to 69 55,000 October 1, 1979 70 to 81 60,000 October 1, 1980 82 to 94 65,000 October 1, 1981 95 to 108 70,000 October 1, 1982 109 to 123 75,000 October 1, 1983 124 to 139 80,000 October 1, 1984 140 to 156 85,000 October 1, 1985 157 to 174 90,000 October 1, 1986 175 to 193 95,000 October 1, 1987 194 to 214 105,000 October 1, 1988 215 to 236 110,000 October 1, 1989 237 to 260 120,000 October 1, 1990 The City has reserved the right to redeem any or all of the outstanding bonds at par, plus accrued interest, on any semiannual interest payment date, on or after October 1, 1980, in inverse numerical order, highest numbers first, 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. Notice of such intended redemption shall also be mailed to the principal underwriter or manager of the account of the successful bidder at its principal place of business not more than forty-five nor less than thirty days prior to the call date. In addition, such redemption notices shall also be sent to Moody's Investors Service, Inc., and Standard & Poor's Corporation, at their offices in New York, New York. 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 redemption fund. The City of Kent has, by Ordinance No.f, irrevocably pledged 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 to pay the principal of and interest upon the bonds as the same shall accrue, and has pledged the full faith, credit and resources of the City for the payment of the principal of and interest on the bonds. -2- Bidders are invited to name the rate or rates of interest which the bonds are to bear, not exceeding 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 1%, or both. No more than one rate of interest may be fixed for any one maturity. Only one coupons 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 of Kent 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. 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 $65,000.00. The deposit shall be either cash or by certified or cashier's check made payable to the City Treasurer of the City of Kent, 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 thirty days -3- following the acceptance of his bid, the amount of his deposit shall be forfeited to the City of Kent 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 of Kent, 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. 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 his option be relieved of his obligation to purchase the bonds, and in such case the deposit accompanying his bid will be returned, without interest. The City of Kent 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 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 McLean & Company, Inc., the k -4- City's financial consultants, at 770 Commerce Street, Tacoma, Washington. DATED at Kent, Washington, this L-1^ day of September, 1970. MARIE JENS �CityCl�rk Publication Dates: g� 0 q, i 11-7v E Y7r- i 8 3; i7 7 M!