HomeMy WebLinkAbout2198CITY OF KENT, WASHINGTON
ORDINANCE NO.
AN ORDINANCE of the City of Kent, Washington,
relating to contracting indebtedness; providing
for the issuance, specifying the maturities, maxi-
mum effective interest rate, terms and covenants
of $450,000 par value of "Unlimited Tax General
Obligation Bonds, 1980" authorized by the quali-
fied voters of the City at a special election held
therein pursuant to Ordinance No. 2185; establish-
ing a bond redemption fund and an acquisiton fund;
and providing for the sale of such bonds.
THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DO
ORDAIN, as follows:
Section 1. The City of Kent, Washington (hereinafter
called the "City"), shall presently issue and sell the total
$450,000 par value of negotiable general obligation bonds author-
ized by the qualified voters of the City at a special election held
on November 6, 1979, pursuant to Ordinance No. 2185 passed and ap-
proved September 17, 1979, for the purpose of acquiring additional
equipment consisting of an aerial ladder truck, pumper, hose, miscel-
laneous equipment, and fire preemption traffic signal controllers.
The bonds shall be designated "Unlimited Tax General Obligation
Bonds, 1980" (the "Bonds") of the City; shall be dated February 1,
1980; shall be in denominations of $5,000 each; shall be numbered
from 1 to 90, inclusivey and shall bear interest at an effective
rate of not to exceed 8-1/2% per annum payable on February 1, 1981,
and semiannually thereafter on each succeeding August 1 and February
1, as evidenced by coupons to be attached to the Bonds representing
interest to maturity and 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 or until
sufficient money for such payment in full is on deposit in the
"Unlimited Tax General Obligation Bond Fund, 1980" (the Bond Fund"),
hereinafter created and the Bonds have been duly called for payment.
Both principal of and interest on the Bonds are to be paid in law-
ful money of the United States of America, which at the time of
payment 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 following
amounts on February 1 of each of the following years (such maturity
schedule being computed at an assumed interest rate of 7-1/4% per
annum):
Bond
Numbers
Maturity
(Inclusive)
Amounts
Years
1
to
2
$10,000
1982
3
to
5
15,000
1983
6
to
8
15,000
1984
9
to
11
15,000
1985
12
to
14
15,000
1986
15
to
17
15,000
1987
18
to
21
20,000
1988
22
to
25
20,000
1989
26
to
29
20,000
1990
30
to
33
20,000
1991
34
to
38
25,000
1992
39
to
43
25,000
1993
44
to
48
25,000
1994
49
to
54
30,000
1995
55
to
60
30,000
1996
61
to
67
35,000
1997
68
to
74
35,000
1998
75
to
82
40,000
1999
83
to
90
40,000
2000
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 February 1, 1990, or any semiannual
interest payment date thereafter at par plus accrued interest to
date of redemption. 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 such purchase.
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Notice of such intended redemption shall be published in
the official newspaper of the City, or if there is no official news-
paper, then in a newspaper of general circulation in King County,
at least once not less than 30 nor more than 45 days prior to the
call date, and a copy of such notice 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 redemption notice shall also be sent
to Moody's Investors Service, Inc., and Standard & Poor's Corpora-
tion, at their offices in New York, New York, but the mailing of
such notice to such New York firms shall not be a condition prece-
dent 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 Fund.
Section 2. 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 suffi-
cient, together with other money legally available and used there-
for, 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 3. The City hereby 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, if such use had been rea-
sonably expected at the date the Bonds are issued, would have caused
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.
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Section 4. The Bonds and coupons shall be printed or
lithographed on good bond paper in a form consistent with the
provisions of this ordinance. The Bonds shall be signed by the
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 5. The Bond Fund is hereby created and estab-
lished in the office of the City Treasurer. The accrued interest
and premium received, if any, upon the sale and delivery of the
Bonds shall be paid into the Bond Fund. There is hereby also
created and established in the office of the City Treasurer a spe-
cial acquisition fund to be known and designated as the "1980 Fire
Equipment Purchase Fund," of the City. The principal proceeds
received from the sale and delivery of the Bonds shall be paid into
the "1980 Fire Equipment Purchase Fund," and used for the purposes
specified in Section 1 of this Ordinance and to pay the costs of
issuance and sale of the Bonds. 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. Pending the
receipt of the proceeds from the issuance of the Bonds, interest-
bearing warrants may be drawn on the "1980 Fire Equipment Purchase
Fund," to provide interim funds to pay such costs, such loan to be
repaid from the proceeds received from the issuance of the Bonds.
Pending the expenditure of bond proceeds out of the "1980 Fire
Equipment Purchase Fund," such proceeds may be invested in any
legal investment and the investment income used for the purposes of
such fund.
Section 6. The Bonds shall be sold for cash at public
sale for not less than par, plus accrued interest.
The City Clerk is hereby authorized to give notice cal-
ling for bids to purchase the Bonds by publishing the same once a
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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 King County 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 prior to the
sale date. Such notice shall specify that sealed bids for the pur-
chase of the Bonds shall be received by the City Clerk in her office
in the City Hall on January 21, 1980, up to 2:00 p.m., local time,
at which time all bids will be considered and award made by the
City Council at its regular meeting to be held in the City Council
Chambers commencing at 8:00 p.m., local time, on the same date.
A copy of the notice shall, at least three weeks prior
to the date fixed for the sale, be mailed to the State Finance Com-
mittee, Olympia, Washington.
Bids shall be invited for the purchase of the Bonds with
fixed maturities in accordance with the schedule specified in Sec-
tion 1 hereof.
The notice shall specify the maximum effective rate of
interest the Bonds shall bear, namely, 8-1/2% per annum, and shall
require bidders to submit a bid specifying:
(a) The lowest rate or rates of interest and
premium, if any, 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 1/20 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
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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 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 consid-
ered. 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 $22,500. 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 purchaser pending
the payment for the Bonds. The purchaser shall not be credited for
such earnings. If the Bonds are ready for delivery and the success-
ful bidder shall fail or neglect to complete the purchase of the
Bonds within forty days following the acceptance 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 at the office of
the City Treasurer or in Seattle, Washington, 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 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 such bid will not
be read or considered.
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 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, Shefelman,
Lawrence, Gay & Moch, municipal bond counsel of Seattle, Washington,
covering the Bonds without cost to the purchaser, the opinion also
being printed on each bond. Bond counsel shall not be required to
review or express any opinion concerning the completeness or accu-
racy 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 Marie Jensen, City Clerk, City Hall,
220 South 4th Avenue, Kent, Washington 98031, or Foster & Marshall
Inc., 205 Columbia Street, Seattle, Washington 98104, the City's
financial consultant.
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Section 7. This ordinance shall take effect from and
after its passage and five (5) days following its publication as
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 17th day of December, 1979.
/177
, �'Az
Mayor i.-)
ATTEST:
r
City Clerk
Oil PPROVED:
n.
ttorney