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HomeMy WebLinkAbout3855 _ � _ .�-. 'r n: ' a•�-� � , � • CITY OF AUBURN, 1NASHINGTON ORDINANCE NO: 3 8 5 5 AN ORDINANCE of the City of Auburn, Washington, relating to contracting indebtedneas; providing for the issuance, specifying the maturities, masimum effective interest rate, terms and covenants of $1,995,000 par value of "Unlimited Tax Gener,al OoI_igation Bonds, 1983, " aathor- ized uy the qualified voters of the City at a special election held therein pucsuant to Ordinance No. 3798; establishing a uond redemption fund and a construction fund; and providing for the sale of such bonds. THE CITY COUNCIL OF THE CITY OF AUHURN, WASHINGTON, DO ORDAIN as. follows: Section 1. The City of Auburn, Washington (the "City°) y shall presently issue and sell the total $1,995,000 par value of negotiable general obligation bonda anthorized by the qual.ified voters of the City at a special, election held on November 2, 1982, pursuant to Ordinance No. 3798 passed and approved • September 7, 1982, for the purpose of paying the coat of con- structing two new fice station8. The bonds ehall be designated "Unlimited Tax General Obligation Bonda, 1983° (the "BOnde") , of the Gity; shall be dated March 1, 1983; sha11 De in the denomi- nation of $5,000 each; shall be numnered from 1 to 399, inclu- aive; and ehall bear interest at the rete or rates specified in the successful bid foc the Bonds, but, not in excess ,of an e8fec- tive rate of 128 per annum, payable on March 1, 1984, and semi- annually thereafter on each succeeding Septemner 1 and March 1, as evidenced by ooupons to be attached to the Bonds cepreaenting interest to maturity. If any Bond is not redeemed upon proper presentment at its maturity or call date thereof, the City ahall - ne onligated to pay interest at the coupon rate for each auch Bond from and after the maturity or call date until such Bond, both principal and intecest, shall have been paid in full oi until sufficient money for such payment in full is on deposit in the "Unlimited Tax General Obligation Bond Fund, 1983" (the ;�, ' - "BOnd Fund°) , hereinafter cteated, and auch Hond has neen duly called foc paymenE by the City Finance Director 's publishing , notice of such call once at least ten daya prior to the call date in the official newspaper of the City, or if there is no official newspaper, the.n in a newspaper of general circulation in the City. 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 payment shall be legal t�ndec for the payment of public and private denta, at the office of the City Finance Director, oc , at the option of the holder , at either- fiscal agency of the State of washington " in 5eattle, Washington, or New York, New York. The Bonds shall matuie serially, annually, in ocder of their numDers in the following amounta on March ,l of each of the followin9 years (auch maturity schedule being com- puted at an assumed interest rate of 8.58 per annum) : Bond Numbers Maturity (Inclasive) Amounts Years 1 to 31 $155,000 1985 32 Eo 65 170,000 1986 66 to lUl 180,000 1987 102 to 141 200,000 1988 142 to 184 215,000 1989 185 to 231 235,000 1990 232 to 282 255,000 1991 283 to 338 280,000 1992 339 to 399 305,000 1993 The Bonds ahall be issued without the right or option of the City to redeem the same prior to their respectiye maturity dates. 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, exceas of pai plus accrued interest to date of purchase. Section .2. The City pledges irrevocably to levy taxes annually, without limitation as to rate or amount, on all prop- erty in the City subject to taxation in an amount sufficient, togethec with other money legally available and to be used - 2 - therefoc, to pay the principal of and intereat on the Bonds as the .same shall become. due, and the full faith, credit and resources of the City ar.e pled.ged irrevocably for the payment of the' principal of and interest on such Bonds. Section 3. The City covenants that it will spend the prin- cipal proceeds of the Bonds with due diligence to completion of the purpoaes specified in this ordinance and will make no uae of � the proceeds of the Bonds or of its other money at any time during the term of the Bonda which will cause the Bonds to be arbitrage bonds within the meaning af Section 103 (c) of the United States Internal Revenue Code of 1954, as amended, . and applicable regulations promulgated thereunder . Section 4. The Bonda and coupons shall ne printed or lith- ogiaphed on good bond paper in a form conaistent with the provi- sions of this ordinance. The Bonds shall be signed by the facsimile signature of the Mayor,. attested. by the manual signa- . ture of the City Clerk and a facaimile. reproduction of the seal of the City shall be printed thereon, and the coupons shall bear the facsimile signaturea of the Mayor and the City Cle;k. Section 5. The Bond Fund is created and established in the . oEfice of the City Finance Director. The accrued interest received, if any, upon the sale and delivery of. the Bonds shall be paid into the Bond Fund. There is also created and estab- lished in the office of the City Finance Director a special fund to be known and designated as the "Fire Station Conetruction Fund, 1983" (the "Construction Fund") , of the. City. The princi- pal proceeds and premium, if any, received from the sale and delivery of the Sonds ahall be peid into the Construction Fund and used for the purposes specified in Section l of this ordin- ance and to pay the costs of issuance and sale of the Bonda. Pending the expenditure of such principal proceeds, the City may temporarily invest such proceeds in any legal investment and the - 3 - investment earnings may be retained in the Construction Fund and expended for the purposes of such fund. All taxes collected foc and allocated to the paymen,t of the principal of and intereat on the, Bonds shall hereafter be deposited' in the Bond Fund. Pend- ing, the receipt of the proceeds from the issuance of the Bonds, intereat-bearing warrants may be drawn on the. Construction Fund to provide interim funds t.o pay such costa, auch loan to be repaid from the proceeds received from the issuance of the Bonda._ Section 6. The Bonds shall be sold for cash at puelic sale for not less than par plus accrued interest , to the date of delivery of and payment for the. BOnde. The City Cleck is authorized , to give notice calling for dids to purchase the Bonda by publishing such notice as reguired by law and a short abbreviated form of auch notice shall also be published once in The Seattle Dai_ly Journal of Commerce and Nocthwest Construction Record of Seattle, Washington, at least „ ten days prior to the sale date: Such notice shall specify that sealed Dids for the purchase of the Bonds shall be received Gy the City ,Clerk in hec office in the City Hall on Febcuary 22, 1983, up to 11:00 a.m. , local time, at which time all bids will be pudlicly opened and, read and an award made by the City Coun- cil at its iegular meeting to be held in the City Council Cham- bers commencing at 8:00 p.m. , local time, on the same date. Bids shall be - invited for the pucchase of the Bonds with fixed maturities in accordance with the achedule specified in Section 1 hereof. The notice shall specify ,the maximum effective rate of interest the Bonda shall bear, namely, 128 per annum, and shall require bidders ' to submit a bid specifying: (a) The lowest rate. or rates of intecest and . premium, if any, above par at which the bidder will purchase the Bonds; or - 4 - (b) . The lowest rate or rates of interest at which the bidder will purchase the Bonds at par . No bid will De conaidered for the �onds for less than par and accrued interest or for less than the entire issue. The purchaser musE pay accrued intecest to date of delivery of the Donds. Coupon rates shall be in multiples of 1/8 oc 1/20 of 18, 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 Bonda for each inatallment of interest theieon, and bids provid- ing for additional or supplemental coupons will be rejected. The maximum .di.fferential between the lowest and hi9hest coupon rates named in any bid shall not exceed 38. For the purpose of comparing the dids only, the coupon ' rates bid being controlling, each oid snall atate the total interest cost ovec the life of the Bonds and the net effective intecest .cate of the uid. The Bonds shall be sold to. the bidder making the best bid, subject to the rignt of the City Council to reject any and all � bids and to readve�tise the Bonds for sale in the manner pro- vided ny law, and no bid for less than all of the Bonds shall ue considered. The City furthec reserves the right to waive any irre9ulaiity in any did or in the oidding ptocess. All nids shall be sealed and, except the bid of the State of Washington, if .one is received, shall be accompanied by a deposit of $99,750. The deposit shall be either ny certified or cashiec 's check made payadle to the City Finance Dicector and ahall be retutned promptly if the bid is not accepted. The City reserves the cight to invest the good faith deposit of the pur- chaser pending. the payment for the �onds. The purchaser shall not be credited for auch earnings. If the Bonds are ready for. ' delivery and the succe.ssful diaaer adall fail or neglect to - 5 - , ;, ,' .•. , complete the purchase of• the Bonds witnin forty days following the acceptance of ita nid, the amount. of its deposit shall be forfeited to the City and in that event the City may accept the Did of the one maKing the, next Dest bid. If there be two or moce equal tiida for not lesa than par plus accrued interest end such, bids are the best bids received, the City Council shall determine by lot which bid shall be accepted. The Bonda will be delivered to the successful bidder upon payment of the purchase price plus accrued interest to the date of delivery, less the amount of the good faith deposit, at the office of the City Clerk or in Seattle, Waehington, at the City's expense, or at auch other place upon which the City Clerk and the successful nidder may mutually agree at the purchaser 's expense, Settle- ment ehaTl be made in federal funds immediately available at the time of delivery of the Bonds. A no-litigation certificate in the usual form will be included, in the closing papers. . CUSIP numbers will be printed on the Boniis, if cequested in the nid of the succesaful bidder, but neither failure to pr.in£ such numbers oq any Gond nor error with cespect thereto shall constitnte cause for a failure or refusal ny the purchaser thereof to accept delivery of and pay for tee Etonda in accord- ance with the terms of the purchase contract. All expenaes in relation Eo the printing of CUSIP numbers on the Bonds shall be � paid by the Ci.ty, but the fee of the CUSIP Service Bureau for the assignment of those numbers. ahall be the responsibility of and shall be paid by the purchaser. ' Any bid presented after the time specified fo[ the [eceipt of bids will not be receiqed, and any bid not accompanied by the , reqaired did .deposit at the time of opening will not be ;ead or considered. If, prior to ttie delivery of the Bonds, the interest receivaole by the holders thereof ehall become, taxadle, directly - 6 - or indirectly, dy the terma of any federal. income tax law, the , successful bidder may at its option be relieyed of its obliga- tion to pu[chase the Bonds, and in such Case the depoait accom- panying its bid will ne returnea, without interest. The notice of, bond_ eale shall provide that the CiEy will cause the Bonda to be pt.inted or lithographed and signed and will ,furniah the approving legal opinion of Messrs. Robects 6 Shefelman; bond counael of Seattle, Washington, covering the , Bonds without cost.�to the purchaser, the opinion also being printed on each bond. Bond counsel sha11 not be required to review or express any opinion concerning the completenesa or , accuracy of any official statement, offering circulac or other sales �material issued or used in connection with the Bonde, . and bond counsel's opinion shall so state. Such ' notice ahall also provide that further information regarding th.e details of the Bonds may be received upon request made to the City Clerk or to Foster & Marshall/American Express Inc. , the City's fi.nancial consultant. PASSED by the City Council and APPROVED by the Mayor of the City of Auburn, Washington, at a regular open_ public meeting thereof, this 7th day of February , 1983. Mayor ATTEST: C�r,a,�. ///G � City Clerk • ' FORM APPROVED• Ci. Attorney l/ PUBLISHED: FEBRUARY 11. 1983 - 7 -