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.
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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
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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
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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.
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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) :
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. , . 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.
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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 :
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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.
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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.
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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
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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 .
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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
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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