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CITY OF AUBURN, WASHINGTON
ORDINANCE N0. 3807
AN ORDINANCE of the City of Auburn, Washington,
relating to the waterworks utility of the City and
amending Section No. 9 on page 9 of Ordinance
No. 3802.
THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, DO
ORDAIN as follows :
Section 1. Section 9 on page 9 of Ordinance No. 3802 is
amended to change the section number and to read as follows :
Section 12. 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 Bonds by publishing
such notice as required by law, and a short abbre-
viated form of such notice also shall be published
once in The Seattle Daily Journal of Commerce and
Northwest Construction Record 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 recei4ed by the City
Clerk in her office in the City Hall on October 18,
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.
Bids 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, 158
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 or for less than the
entire issue. The purchaser must pay accrued inter-
est to date of delivery of the Bonds.
Coupon rates shall be in multiples of 1/8 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
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 38.
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 oP 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 prov3ded by law, and no bid
for less than all of the Bonds shall be considered.
The City further reseives the r3ght to waive 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 tiy a deposit of $100, 000. The deposit
shall be by either certified or cash3er ' s check made
payable to the City Finance Director and shall be
returned promptly 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 earn-
ings on such investments. If the Bonds are ready for
delivery and the successful bidder shall fail or
neglect to complete the purchase of the Bonds wibhin
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 upon payment of the purchase
price plus accrued interest to the date of delivezy,
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.
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CUSIP numbers will be printed on the Bonds if
requested in the bid of the successful 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 accor-
dance with the terms of the purchase contract. All
expenses in relation to the printing ot CUSIP numbers
on the Bonds shall be paid by the City, but the fee
of the CUSIP Service Bureau for the assignment of
those numbers shall be the responsibility of and
shall be paid by the purchaser.
Any bid presented after the time specified for
the receipt of bids will not be received, and any bid
not accospanied by the required bid deposit at the
time of opening will not be read o= considered.
If, prior to the delivery of the Bonds, the
interest 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 litho-
graphed and signed and will furnish the approving
legal opinion of Messrs. Roberts 6 Shefelman
( Roberts, Shefelman, Lawrence, Gay � Moch) , 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
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required to review or express any opinion concerning
the completeness or accuracy of any official state-
ment, 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 the City Clerk or to Foster & Maishall/
American Express Inc. , the City' s financial
consultant .
Section 2. All actions heretofore taken consistent with
the provisions of this amendatory ordinance are ratified,
approved and confirmed.
PASSED by the City Council at a regular open public meeting
thereof, and APPROVED by the Mayor of the City of Auburn, Wash-
ington, this 4th day of October, 1982.
INTRODUCED: OCTOBER 4. 1982
PASSED: OCTOBER 4, 1982
APPROVSD: OCTOBE 1982
Mayo
ATTEST:
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Ci y C erk
APPROV D AS TO FORM:
�
Cit ttorney
PUBLISHED: OCTOBER 10, 1982
Ordinance No. 3807
Page 5 of 5
0102a
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STATE OF WASHINCTON)
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GOUNTY OF KZNC J �
I, Coralee A.. McConnehey, the duly appointed, qualified City C2erk
of the City of Auburn, a Municipal Corporation aru] Code City, situate in
the County of King, State of Washington, do hereby certify that the fore-
g oinq is a fu11 , true and ..rorrect co�y of Ordinance t✓o, 3807 of the
- ordinances of the City of Aubutn, entitled "AN ORDINANCE OF THE CITY OF �
ALTBURN, W.ASHINGTON, RECATING TO Tf� FIATEIdn�RKS I]TII,ITY OF TI-IE CITY AND
P,ME[�IDIiVG SECTIOfI N0. 9 ON PAE� 9 OF ORDINANCE N0. 3802.
I ceitify that said Ordinance No. '�R07 was du2y passed by the Council
' and appmved by the Hayor of the said Cit'g of Auburn, an the L�_day of '
October A.D. , 19 $2 •
I further certify that said Ordinance No. 3807 Was published as provided.
by Iaw in the Da31y Globe News, a dai2y newspaper published in the City of
Auburn, and of genera2 circalation [herein, on the 10 day of October
A.D. , 19 82 -
WITNESS my hand and the off�cal seal of the City of Auburn, this 1J
day of October , A.D. . 19 82_
C/I/ GGI..(it�- C
CITY CLERK OF TNE CZTY OF 11UBU N'