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HomeMy WebLinkAbout3802 CITY OF AUBURN, WASHINGTON ORDINANCE NO. 3 8 0 2 AN ORDINANCE of the City of Auburn, Washington, relating to the waterworks utility of the City; amending Ordinance No. 3575, as amended by Ordinances Nos. 3709 and 3719; repealing Section 4 of Ordinance No. 3575; providing for the issuance, specifying the maturities, maximum effective interest rate, terms and covenanta of $2, 000, 000 par value of "Limited Tax General Obligation Bonds, 1982, " of the City for strictly City purposes to provide funds with which to pay a portion of the cost of carrying out the system or plan of additions to and betterments and exten- sions of the waterworks utility of the City speci- - fied, adopted and ordered to be carried out by Ordi- nance No. 3575, as amended, and to redeem interest- bearing water and sewer revenue warrants issued for such purpose; establiahing a bond redemption fund and a conatruction fund; and providing for the sale of such bonds . WHEREAS, the City of Auburn, Washi.ngton (the "City" ) , is in urgent need of cariyincj out the system or plan of additions to and betterments and extensions of the waterworks utility of the City specified, adopted and orclered to be carried out by Ordi- nance No. 3575, as amended, and of redeeming interest-bearing water and sewer revenue warrants issued for such purpose, the estimated cost of which is $2, 060, 000, and the City does not have available sufficient funds to pay all such costs; and WHEREAS, the City Council deems it to be in the best inter- est of the City to cause the City to issue $2, 000, 000 par value of limited tax general obligation bonds to pay substantially all of such costs in 1'ieu of the $2, 000, 000 par value of water and sewer revenUe bonds authorized for auch purpose by Ordinance No. 3575; NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, DO ORDAIN as follows : Section 1. Section 3 of Ordinance No. 3575 is amended to read as follows : Section 3. The estimated cost, as near as may be�, of the acquisition, construction and installation of the above- described additions to and betterments and extensions of the Waterwo=ke Utility of the City is declared to be $2, 060, 000, such estimated coet to be paid from the proceeds received from the issuance and sale of limited tax general obligation bonda of the City in the amount of $2, 000, 000 heiein authorized to be issued and the balance from other funds of the City available therefor. Section 2. Effective at the time the general obligation bonds authorized by this amendatory ordinance are isaued, sold and delivered to the puichaser thereof upon full payment there- for, Section 4 of Ordinance No. 3575 is repealed. Section 3. Section 5 of Ordinance No. 3575 is amended to read as follows : Section 5. There has heretofore been created and establiahed in the office of the City Fifiance Director a special fund of the City known as the "Water/Sewer Construction Fund No. 440" which shall be used for the purposes of paying for the costs and expenses of carrying out the system or plan of addi- tions to and betterments and extensione of the Waterworks Utility of the City as specified, adopted and ordered to be carried out in Section 1 hereof and of paying the costs and expenses connected therewith, including the financing thereof, and reimbursing advances made to that conetruction fund from other City funds for those purposes, and into which fund shall be deposited the proceeds from the sale of the water and sewer revenue war=ants and general obligation bonds (to the extent they are not needed for deposit in the revenue warrant fund created by Section 6 of Ordinance No. 3575) herein authorized to be isaued and other money to be uaed for auch purposes. - 2 - Section 4. Section 6 of Ordinance No. 3575 as amended by Section 1 of Ordinance No. 3709 and Section 1 of Ordinance No. 3719 is amended to read as follows : Section 6. There is created and established in the office of the City Finance Directoi a special fund of the City to be known as the "Water and Sewer Revenue Warrant Fund, 1980. " Pending the issuance of the water and sewer revenue bonds authorized by Section 4 or the general obligation bonds authorized by this amendatory ordinance, the City shall issue fiom time to time water and sewer revenue warrants in a total amount not to exceed $2, 000, 000 which shall be paid from the proceeds of such water and sewer revenue bonds or general obli- gation bonds and, if necessary, from the gross revenue of the Waterworks Utility of the City after the payment of the mainte- nance and operation expenses of that utility and the payment of the principal of and interest on any outstanding water and sewer revenue bonds of the City as that principal and interest comes due. All such warrants shall be paid solely from the Water and Sewer Revenue Warrant Fund, 1980, and shall not constitute gen- eral obligations of the City unless they are redeemed by the general obligation bonds authorized by this ordinance. The principal amount of the warrants heretofore issued from that fund as of the date of this amendatory ordinance (Ordinance No. 3709) shall be funded by a warrant from that fund, shall bear interest at the rate of 11. 25$ per annum from its date of issuance to the date of ita redemption, and shall be redeemed on or before December 31, 1982. The City covenants that it ahall redeem the warrant author- ized by this section and issued pursuant to this and subsequent ordinances on or before December 31, 1982, from the pioceeds of the water and sewer revenue bonds authorized by this ordinance (Ordinance No. 3575) , from proceeds of additional warrants which - 3 - the City Council may at a later time authorize, from the general obligation bonds authorized by this amendatory ordinance, and if necessary from the gross revenue of the Waterworks Utility of the City after the payment of the maintenance and operation expenses of that utility and the payment of the principal of and interest on any outstanding water and sewez revenue bonds of the City and bonds hereafter iasued on a parity therewith as that principal comes due. The warrant shall constitute a charge or lien against such grbss revenue aubject only to those operation and maintenance expenses and the payment of the principal and interest on those outstanding water and sewer revenue bonds and bonds hereafter isaued on a parity therewith. The City coqe- nants that it shall maintain rates and charges from service to customers of its Waterworks Utility sufficient to redeem such warrant when due or thereafter if the proceeda of the water and sewer revenue bonds authorized by this ordinance shall be insuf- ficient for that purpose. Seattle-First National Bank, by offer dated December 11, 1981, has offered to purcha.se all warrants authorized by this section when issued. The City Council finds that such offer is the best that the City could receive and that it ie in the best interest of the City to accept the same, and by this action does accept that offer. The warrant wheb issued shall be delivered to the purchaser upon payment therefor. If requested by the purchaser, the City at its expense will furnish the purchaser with the opinion of Roberts & Shefelman, bond counsel of Seattle, Washington, approving the legality of such warrants and the exemption of the interest thereof f_rom federal income taxa- tion. That opinion shall state that bond counsel has not re- viewed and thus expresses no opinion concerning the completeness or accuracy of any official statement, offering circular or - 4 - other sales material relating to the issuaace of the warrant or otherwise used in connection with the warrant. A no-litigation opinion in the usual form shall also be furnished to the purchaser. Section 5. The asseased valuation of the taxable property of the City as ascertained by the last preceding assessment for City purposes for the calendar year 1982 is $1, 299, 787, 027, and the City has outstanding general i.ndebtedness evidenced by limited tax general obligation bonds of $850, 000 incurred within the limit of up to 3/4 of 1$ of the value of the taxable prop- erty within the City permitted for general municipal purposes without a vote of the qualified voters therein, and unlimited tax general obligation bonds in the principal amount of $611, 000 within the limit of up to 2-1/2$ of the value of the taxable pioperty within the City for capital purposes only issued pu=- suant to a vote of the qualified voters of the City, and the amount of indebtedness for which bonds are herein authotized to be issued is �2, 000, 000. Section 6. The City shall borrow moaey on the credit of the City and issue negotiable limited tax general obligation bonds evidencing such indebtedness in the amount of $2, 000, 000 for general City purposes to provide the funds to pay a portion of the cost of carrying out the system or plan of additions to and betterments and extensions of the waterworks utility of the City specified, adopted and ordered to be cariied out by Ordi- nance No. 3575, as amended, and redeeming interest-bearing water and sewer revenue war�rants issued for suc_h purpose as above described and to pay the cost of the issuance of the Bonds. Such general indebtedness to be incurred shall be within the li�it of up to 3/4 of 1� of the value of the taxable property within the City permitted for general municipal purposes without a vote of the qualified voters therein. - 5 - Section 7. The Bonds shall be called "Limited Tax General Obligation Bonds, 1982" (the "Bonds" ) of the City; shall be dated October 1, 1982; shall be in the denomination of $5, 000 each; shall be numbered from 1 to 400, inclusive; and shall bear intereat at the rate or rates specified in the successful bid for the Bonds, but not in ezcess of an effective rate of 158 per annum, payable on October 1, 1983, and semiannually thereafter on each succeeding April 1 and October 1 as evidenced by coupons to be attached to the Bonds representing interest to maturity. Zf any Bond is not redeemed upon proper presentment at its maturity or call date, the City shall be obligated to pay inter- est at the coupon rate for each such Bond from and after the maturity or call date uqtil such Bond, both principal and inter- est, shall ha4e been paid in full or until sufficient money for such payment in full is on deposit in the "Limited Tax General Obligation Bond Fund, 1982" (the "Bond Fund") , hereinaftei created and such Bond has been duly called for payment by the City Finance Director by publishing notice of such call once at least ten days prior to the call date in the official newspaper of the City, or if there is no official newspaper, then in a newspaper of general circulation in the City. Both principal of and intereat on the Bonds are to be paid in lawful money of the United States of America, which at the time of payment shall be legal tende= foz the payment of public afid piivate debts, at the office of the City Treasurer or, at the option of the holder, at either fiscal agency of the State of Washington in Seattle, Washington, or New York, New York. The Bonds shall mature serially, annually, in order of their numbers in the following amounts on Octob"er 1 of each of the following years (such maturity schedule being computed at an assumed interest rate of 12$ per annum) : - 6 - . , . u , � o� � , � Bond Numbers Maturity ( Inclusive) Amounts Yeare 1 to 6 $ 30, 000 1984 7 to 20 70, 000 1985 21 to 36 80, 000 1986 37 to 53 85, 000 1987 54 to 73 100, 000 1988 74 to 95 110, 000 1989 96 to 120 125, 000 1990 121 to 148 140, 000 1991 149 to 179 155, 000 1992 180 to 214 175, 000 1993 215 to 253 195, 000 1994 254 to 296 215, 000 1995 297 to 345 245, 000 1996 346 to 400 275, 000 1997 The Citj+ reseives 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 October 1, 1992, or any semiannual interest payment date thereafter at par plus accrued interest 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 newapaper, 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 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 succeasful bidder for the Bonds, or its successoi. In addition, such redemption notice shall be sent to Moody' s Investors Service, Inc. , and Standard 6 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. Intereat on any Bonds ao called for redemption shall cease on sucli call date upon payment of the redemption pzice into the Bond 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. - 7 - Section 8. The City irrevocably pledges to levy taxes annually, within the constitutional and statutory tax limita- tions provided by law without a vote of the electore 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, Eo pay the principal of and interest on the Bonda as the same ahall accrue, and the full faith, credit and resources of the City are pledged irrevbcably for the pay- ment of the principal of and interest on the Bonds. Section 9. The City covenants that it will spend the prin- cipal proceeds of the Bonds with due diligence to completion ot the purposes specified in this ordinance and will make no yse 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 =egulations prbmulgated thereunder. Section 10. The Bonds and coupons shall be printed or lithographed on good bond paper in a fors consistent with the provisione 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 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 11. The Bond Fund is created and established in the office 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. The principal proceeds and premium, if any, received from the sale and delivery of the Bonds ehall be deposited as follows : - 8 - Into the Water and Sewer Revenue Warrant Fund, 1980, " created by Ordinance No. 3575, as amended, the amount necessary to redeem, both principal and interest, the outstanding water and sewer revenue wairants issued pursuant to Ordinance No. 3575, as amended; Into the "Water/Sewer Construction Fundallo�he40ostshof balance of auch principal proceeds to p y carrying out the system or plan of additions to and betterments and extensions of the waterworks utility of the City specified, adopted and ordered to be carried out by Ordinance No. 3575, as amended, and the coste of issuance and sale of the Bonds. Pending the expenditure of such principal proceeds, the City may invest such proceeds temporarily in any legal investment and the investment earnings may be retained in -such funds and expended for the purposes of such funds. All taxes collected for and allocated to the payment of the principal of and inteiest on the Bonds shall hereafter be deposited in Ehe Bond Fund. Pending the receipt of the proceeds from the issuance of the Bonds, additional inteiest-bearing warrants may be drawn on the "Water/Sewer Construction Fund No. 440, '' to provide interim funds to pay such costs, such loan to be repaid from the pro- ceeds received from the iseuance of the Bonds. Section 9• The Bonds shall be sold for cash at public sale for not less than par, plus accrued interest. , The City Clerk is authorized to give notice calling for bids to purchase the Bonda by publishing such notice as required by law, and a short abbreviated form of such notice also shall be published once in The Seattle Daily Journal of Commerce and Nozthwest Construcbion Recor3 of Seattle, Washington, at leaet ten days prior to the eale date. Such notice shall specify that sealed bids for the purchase of the Bonds shall tie received by the City Clerk in her office in the City Hall on October 4, 1982> 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 Chambers commencing at 8:00 p.m. , local time, on the same date. - 9 - eids shall be invited for the purchase of the Bonds with fixed maturities in accordance with the schedule specified in Section 7 hereof. The notice shall specify the maximum effective rate of interest the Bonds shall bear, namely, 15$ per annum, and shall require bidders to submit a bid specifying : (a) The lowest rate or rates of iateiest 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 acciued intereat or for lese than the entire issue. The purchaser must pay accrued interest to date of delivery of the Bonds. Coupon rates shall be in multiplea of 1/8 or 1/20 of 18, or both. No more than one rate of interest may be fixed for any one matu=ity. Only one coupon will be attached to each of the Bonds for each installment of interest thereon, and bids provid- ing for additional or supplemental coupons will be rejected. The maximum differential between the loweat and highest coupon rates named in any bid shall not exceed 3$. Foi 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 Bonde 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 reservea the right to waiye any irregularity in any bid or in the bidding process. - 10 - 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 $100, 000. The deposit shall be by either certified or cashier' s check made payable to the City Finance Director and shall be returned promptly if the bid is not accepted. The City ieserves the right to inveat the good faith deposit of the pur- chaser pending the payment for the Bonds. The purchaser shall not be credited for earnings on such investments. If the Bonds are ready for delivery and the succesaful 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 inter- est and euch 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 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, Washington, at the City' s expense, or at such other place upon which the City Clerk and the successful bidder may mutually agree at the purchaser ' s expense. Settle- ment shall 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 Bonds if requeated in the bid of the auccessful bidder, but neither failure to 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 accoid- ance with the terme of the pu;chase contract. All expenses in - 11 - 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 aseignment of those numbers shall be the responsibility of and shall be paid by the purchasei. Any bid presented after the time speci-fied 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 re- ceivable 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 obliga- tion to purchase the Bonds, and in such case the deposit accom- panying its bid will be zeturned, 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 (ROberts, Shefelman, Lawrence, Gay & Moch) , bond coun- sel of Seattle, Washington, coveiing the Bonds without cost to the purchaser, the opinion also being printed on each bond. Bond counsel ahall not be required to review or express any opinion concerning the completeness 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 ahall also provide that further information regarding the details of the Bonda may be received upon request made to the City Clerk or to Foster 6 Marshall/ American Express Inc. , the CiGy' s financial consultant . - 12 - � . . . . . • r• . � • � . . _ . - .. r• . . ' • ' PASSE_D by the City Council at a regular open public meeting thereof, and APPROVED by the Mayor of the City of Auburn, Wash- ington, this 7th day of September, 1982. INTRODUCED: SEPTEMBER 7, 1982 PASSED: SEPTEMBER 7, 1982 APPROVED: SEPTEMBER 7 1982 Mayor ATTEST: �i(/ (I.C���✓ � �Vv 6!I���Lr� City Clerk —� APPROVED AS TO FORM: � � ^ Cit ttorney PUBLISHED: SEPTEMBER 12. 1982 -------------------- Ordinance No. 3802 Page 13 of 13 0073a - 13 - STATE OF WASHINGTON) . J ss. COUNTY OF KING ) Z, Coralee A. McConnehey, the duly appointed, qualified City Clerk - of the City of Auburn, a Municipal Coryoration and Code City, situate in � . the County of Xing,� State of Washirn�ton, do hereby certify that the Fore- g oing is a fu11, true and �rorrect co�y of Ordinance No. 3802 of the . ordinances of the City of Auburn, entitled "AN ORDINANCB of th2 City Of � Aubu�cn, Washingtan, relating to the waterworks utility of the City; �en_ding Ordinance No. 3575, as �nended by Qrdinances Nos. 3709 and 3719; re- pealing Section 4 of Ord'inance No. 3575; proviclisig for the issuance, speci:- � fyir� the matisities, m��*m� effective ii�terest rate, texvi§ �d coven�its of $2,000,000 par value of "Limited Tax General Obligation Bonds, 1982," of the City for strictly City puzposes to provide fimds with which to pay a portian of the cost of carrying out the syst� or plan of additions to �d bettexments azid extensions of the watenqorks utility of the City speci- _ fied, adopted and ordered to be carried out by Ordinance No. 3575, as �encled, and to redeem interest-bearing water �d sewer revenue warrants issued for such purpose; establishing a band rede�tion fimd and a canstruc- t-ion fimd; m}d providing for the sale of such bonds. I certify that said Ordinance No. �gp2 was duly passed by the Council and appzvved by the Mayor of the said City of Auburn, on the 7rh day of SeptembeT A.D. , 19 $2 • I further certify that said Ordinance No. 3802 was published as provided. by law in the Daily Globe News, a daily newspaper published in the City of Au6urn, and of genera2 circulation Cherein, on the 12th day of Seut. A.D. , 19 -R� . WITNFSS my hand and the offical sea2 of the City of Auburn, this 1'ith day of Sept. , A.D. , 19 82 . �,//I�Q � �/ l�G��72�7��� CITY CLERX OF THE CZTY OF AUBURN