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HomeMy WebLinkAbout1501ORDINANCE NO. AN ORDINANCE of the City of Kent, Washington, providing for the issuance, specifying the ma- turities and maximum interest rate and fixing the form of $1,130,000.00 par value of "City Hall General Obligation Bonds, 1968," of the City to provide the funds necessary to acquire real properties and construct a new Kent City Hall as authorized by the qualified voters of the City at a special election held on January 23, 1968; and providing for the public sale of such bonds. THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DO ORDAIN as follows: Section 1. The City of Kent shall presently issue and sell the total not to exceed $1,130,000.00 par value of negotiable general obligation bonds authorized by the qualified voters of the City at a special election held on January 23, 1968, pursuant to Ordinance No. 1493, in order to finance the cost of acquiring real properties, constructing a new Kent City Hall and paying the cost of the issuance of such general obligation bonds. The bonds shall be designated "City Hall General Obligation Bonds, 1968," shall be dated May 1, 1968, shall be in the denomination of $5,000.00 each, shall be numbered from 1 to 226, inclusive, and shall bear interest at a rate or rates not exceeding 6% per annum, payable semiannually on May 1 and November 1 of each year, as evidenced by interest coupons to be attached to the bonds representing in- terest 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 those 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 the City of Kent, Washington, or, at the option of the bondholders, at the fiscal agency of the State of Washington in New York, New York. The bonds shall be payable serially in order of their numbers as follows: Bond Numbers (Inclusive) Amounts Maturities 1 to 8 $ 40,000 May 1, 1970 9 to 16 40,000 May 1, 1971 17 to 24 40,000 May 1, 1972 25 to 33 45,000 May 1, 1973 34 to 42 45,000 May 1, 1974 43 to 52 50,000 May 1, 1975 53 to 62 50,000 May 1, 1976 63 to 73 55,000 May 1, 1977 74 to 84 55,000 May 1, 1978 85 to 96 60,000 May 1, 1979 97 to 108 60,000 May 1, 1980 109 to 121 65,000 May 1, 1981 122 to 134 65,000 May 1, 1982 135 to 148 70,000 May 1, 1983 149 to 162 70,000 May 1, 1984 163 to 177 75,000 May 1, 1985 178 to 193 80,000 May 1, 1986 194 to 209 80,000 May 1, 1987 210 to 226 85,000 May 1, 1988 Section 2. The City of Kent reserves the right to redeem any or all of the outstanding bonds of said issue at par, plus ac- crued interest, on any semiannual interest payment date, on or after May 1, 1978, in inverse numerical order, highest numbers first, by publishing notice of said intended redemption in the official news- paper 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 successful bidder on the bonds 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 redemp- tion upon payment of the redemption price into the bond redemption fund for such bonds. Section 3. The City of Kent hereby irrevocably pledges 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 upon said bonds as the same shall accrue, and the full faith, credit and re- sources of said City are hereby irrevocably pledged for the payment - 2 - of the principal of and interest on said bonds. Section 4. The bonds herein authorized to be issued shall be in substantially the following form: No. $5,000.00 UNITED STATES OF AMERICA STATE OF WASHINGTON CITY OF KENT CITY HALL GENERAL OBLIGATION BOND, 1968 KNOW ALL MEN BY THESE PRESENTS: That the City of Kent, State of Washington, is justly indebted to and for value received promises to pay to the bearer on the FIRST DAY OF MAY, 19 , the principal sum of FIVE THOUSAND DOLLARS together with interest thereon at the rate of PERCENT per annum, payable semiannually on the lst days of May and November of each year, the interest to maturity being evidenced by and payable upon the presentation and surrender of the attached interest coupons as they severally become due, up to the bond maturity date, 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 of Kent, Washington, or, at the option of the bond- holder, at the fiscal agency of the State of Washington in New York, New York. This bond is one of an issue of $1,130,000.00 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 of Kent pursuant to a special elec- tion of the qualified voters of the City auth- orizing the same for strictly municipal capital purposes, other than the replacement of equip- ment, to -wit, for the purpose of providing the funds necessary to pay the cost of acquiring real properties and constructing a new Kent City Hall, all as provided in Ordinances Nos. 1493 and 15c, The City of Kent reserves the right to re- deem any or all of the outstanding bonds of this issue at par, plus accrued interest, on any semi- annual interest payment date, on or after May 1, 1978, in inverse numerical order, highest numbers first, by publishing notice of said intended re- demption 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 - 3 - 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 prior to the call date. In addition, such re- demption 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 re- demption shall cease on the date fixed for such redemption upon payment of the redemption price into the bond redemption fund for such bonds. The City of Kent hereby irrevocably pledges itself to levy taxes annually, without limita- tion as to rate or amount, upon all property in the City subject to taxation in an amount suf- ficient to pay the principal of and interest upon 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, condi- tions 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 limitation. IN WITNESS WHEREOF, the City of Kent, Wash- ington, 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 in- terest coupons attached to be signed with the facsimile signatures of said officials this first day of May, 1968. CITY OF KENT, WASHINGTON By (facsimile signature) Mayor ATTEST: City Clerk The form of the interest coupons shall be substantially as follows: Coupon No. On the FIRST DAY OF (MAY) (NOVEMBER) , 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 hereof, at the fiscal agency of the State of Washington in New York, New York, the sum shown hereon in lawful money of the United - 4 - States of America, said sum being the semiannual interest due that date upon its "City Hall Gen- eral Obligation Bond, 1968," dated May 1, 1968, and numbered CITY OF KENT, WASHINGTON By (facsimile signature) Mayor ATTEST: (facsimile signature) City Clerk Section 5. The bonds shall be signed by the facsimile signature of the Mayor and attested by the manual signature of the 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 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 "City Hall General Obligation Bond Fund, 1968," for the payment of the principal and interest on the bonds. The accrued interest received from the sale of the bonds shall be paid into said bond redemption fund and the principal proceeds received ction shall be paid into the City Hall Constr.u-/Fund of the City and ex- pended to pay the costs of acquiring real properties and construct- ing a new Kent City Hall, as provided by Ordinance No. 1493, and the costs of the issuance and sale of the bonds. All taxes collected for the payment of the principal of and interest on the bonds shall be deposited in the "City Hall General Obligation Bond Fund, 1968." 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 newspaper of the City of Kent and such notice shall also be published - 5 - 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 the 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 on April 15, 1968, up to 8:00 o'clock p.m. (PST), at which time all bids will be publicly opened for the pur- chase of the bonds and considered by the City Council at a meeting thereof then to be held. 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 Sec- tion 1 hereof. The Notice shall specify the maximum effective rate of interest the bonds shall bear, to -wit, 6% per annum, and shall re- quire bidders to submit a bid specifying: (a) The lowest rate or rates of interest and premium, if any, above par at which the bid- der will purchase the bonds; or (b) The lowest rate or rates of interest at which the bidder will purchase the bonds at par. 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 addi- tional or supplemental coupons will be rejected. The maximum dif- ferential 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 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 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 $56,500.00. The deposit shall be either cash or 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 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. A no -litigation certificate in the usual form will be included in the closing papers. The City Clerk of the City of Kent 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 and lithographed and signed and will furnish the approving legal opinion of Messrs. Roberts, Shefelman, Lawrence, Gay & Moch, municipal bond counsel of Seattle, Washington, without cost to the purchasers, said opinion also being printed on each bond. - 7 - PASSED by the City Council of the City of Kent, Washington, 18th at a regular meeting thereof, and APPROVED by the Mayor this *tW day of March, 1968, Mayor ATTEST: City FOjWk APPROVED: C7- City Attorney Date of Publication: 1 /?(11? I, MARIE JENSEN, Clerk of the City of Kent, Washington, do hereby certify that the attached is a true and correct copy of 18th ordinance No. /5C I, passed March 9, 1968, as said ordinance appears on the Minute Book of the City. DATED this day of March, 1968. MARIE JENSE lerk NOTICE OF BOND SALE CITY OF KENT, WASHINGTON CITY HALL GENERAL OBLIGATION BONDS, 1968 $1,130,000.00 SEALED PROPOSALS will be received at the office of the City Clerk at the City Hall, Kent, Washington, until 8:00 o'clock p.m. (PST) on APRIL 1� 1968 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 $1,130,000.00 par value of "City Hall General Ob- ligation Bonds, 1968," of the City cf Kent, Washington, authorized by Ordinances Nos. 1493 and and by vote of the electors of the City, for strictly municipal capital purposes, to -wit, to pro- vide the funds necessary to acquire real properties and construct a new Kent City Hall and to pay the cost of the issuance of such general obligation bonds. The bonds will be dated May 1, 1968, will be numbered from 1 to 226, inclusive, will be in denominations of $5,000.00 each, will bear interest at an effective rate not to exceed 6% per annum, payable semiannually on May 1 and November 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 bondholders, at the fiscal agency of the State of Washington in New York, New York, and will mature serially in accordance with the fol- lowing schedule, to -wit: Bond Numbers (Inclusive) Amounts Maturities 1 to w 8 $ 40,000 May 1, 1970 9 to 16 40,000 May 1, 1971 17 to 24 40,000 May 1, 1972 25 to 33 45,000 May 1, 1973 34 to 42 45,000 May 1, 1974 43 to 52 50,000 May 1, 1975 53 to 62 50,000 May 1, 1976 63 to 73 55,000 May 1, 1977 74 to 84 55,000 May 1, 1978 85 to 96 60,000 May 1, 1979 97 to 108 60,000 May 1, 1980 109 to 121 65,000 May 1, 1981 122 to 134 65,000 May 1, 1982 135 to 148 70,000 May 1, 1983 149 to 162 70,000 May 1, 1984 163 to 177 75,000 May 1, 1985 178 to 193 80,000 May 1, 1986 194 to 209 80,000 May 1, 1987 210 to 226 85,000 May 1, 1988 The City reserves the right to redeem the bonds as a whole, or in part in inverse numerical order, on May 1, 1978, or on any semiannual interest payment date thereafter, at par plus accrued interest to date of redemption. Any call for the redemption of such bonds shall be made by publishing notice thereof 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 ac- count 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 notice shall 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 re- demption upon payment of the redemption price into the bond redemp- tion fund for such bonds. The City of Kent has, by Ordinance No./ -5C , irrevocably pledged 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 said - 2 - issue of bonds as the same shall become due, and the full faith, credit and resources of the City have been irrevocably pledged for the payment of the principal of and interest on the bonds. Bidders are invited to name the rate or rates of inter- est which the bonds are to bear, not exceeding 6% per annum. Bid- ders 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 coupon will be attached to each bond for each installment of interest thereon, and bids providing for addi- tional or supplemental coupons will be rejected. The maximum dif- ferential 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 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 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 $56,500.00. The deposit shall be either cash or certified or cashier's check made payable to the City Treasurer of the City of - 3 - 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 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. 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 fur- nished to the purchasers of the bonds without cost to the purchasers, which legal opinion will be printed on each bond, and a no -litigation certificate will be included in the closing papers. Further information concerning the bonds may be received upon request made to the City Clerk, or from McLean & Company, Inc., the City's financial consultants, at 772 Commerce Street, Tacoma, Washington 98402. DATED at Kent, Washington, this 01-/ day of March, 1968. Publication Dates: r - 4 - rCity Clerk