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HomeMy WebLinkAbout1496 OrdinanceCITY OF PASCO, WASHINGTON ORDINANCE NO. 1496 AN ORDINANCE of the City of Pasco, Wash- ington, providing for the issuance, specifying the maturities and maximum effective interest rate, and fixing the form of $820,000.00 par value of "General Obligation Bridge Bonds, 1971," authorized by the qualified voters of the City at a special election held on September 15, 1970, pursuant to Ordinance No. 1434 of the City Council passed July 7, 1970; creating a special construction fund and a special bond redemption fund; and providing for the sale of such bonds. THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN, as follows: Section 1. The City of Pasco shall presently issue and sell the total not to exceed $820,000.00 par value of negotiable general obligation bonds authorized by the qualified voters of the City'at a special election held on September 15, 1970, pursuant to Ordinance No. 1434 of the City Council, passed July 7, 1970, for the purpose of paying the City's share of the cost of carrying out Phase I of the Pasco -Kennewick intercity bridge project over the Columbia River. The bonds shall be designated "General Obligation Bridge Bonds, 1971," shall be dated November 1, 1971, shall be in denominations of $5,000.00 each, shall be numbered from 1 to 164, inclusive, and shall bear interest at a rate or rates not to exceed an effective rate of 8% per annum, as evidenced by interest coupons to be attached to the bonds representing interest to maturity, with full obligation on the part of the City to pay interest at the bond rate or rates from and after maturity until said 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 Treasurer of the City of Pasco, Washington, or, at the option of the bondholder, at either of the fiscal agencies of the State of Washington in the Cities of Seattle, Washington, or New York, New York, and the bonds shall be payable serially over a period of from two to twenty years from the date of issue and mature in order of their numbers as follows: Bond Numbers (Inclusive) 1 to 5 6 to 10 11 to 15 16 to 21 22 to 27 28 to 34 35 to 41 42 to 48 49 to 56 57 to 64 65 to 73 74 to 82 83 to 92 93 to 102 103 to 113 114 to 125 126 to 137 138 to 150 151 to 164 Amounts Maturities $25,000 November 1, 1973 25,000 November 1, 1974 25,000 November 1, 1975 30,000 November 1, 1976 301000 November 1, 1977 35,000 November 1, 1978 35,000 November 1, 1979 35,000 November 1, 1980 40,000 November 1, 1981 40,000 November 1, 1982 45,000 November 1, 1983 45,000 November 1, 1984 50000 November 1, 1985 50,000 November 1, 1986 55,000 November 1, 1987 60,000 November 1, 1988 60,000 November 1, 1989 65,000 November 1, 1990 70,000 November 1, 1991 Section 2. The City of Pasco reserves the right to redeem any or all of the outstanding bonds of this issue at par, plus accrued interest, on any semiannual interest payment date, on or after November 1, 1981, in inverse numerical order, highest numbers first, by publishing notice of such intended redemption 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, and by mailing a copy of such notice within the same period to the principal underwriter who purchases the bonds. In addition, such redemption notice shall also be sent to Moody's Investors Service, Inc., and Standard & Poor's Corporation, at their offices in New York, New York, but the mailing of such notice to such corporations shall not be a condition precedent to the redemption of such bonds. Interest on any bonds so called for redemption shall cease on such call date upon payment of the redemption price into the bond redemption fund for such bonds. -2- Section 3. The City of Pasco hereby irrevocably pledges 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 the bonds as the same shall become due, and the full faith, credit and resources of the City are hereby irrevocably pledged for the payment of the principal of and interest on such bonds. form: Section 4. The bonds shall be in substantially the following No. $5,000.00 UNITED STATES OF AMERICA STATE OF WASHINGTON CITY OF PASCO GENERAL OBLIGATION BRIDGE BOND, 1971 % KNOW ALL MEN BY THESE PRESENTS: That the City of Pasco, State of Washington, for value received, promises to pay to the bearer on the FIRST DAY OF NOVEMBER, 19_, the principal sum of FIVE THOUSAND DOLLARS together with interest thereon at the rate of PERCENT ' ( % ) per annum, until fully paid, payable semiannually on the first days of May and November of each year, with interest to maturity being evidenced by and payable upon the presentation and surrender of the attached interest coupons as they severally become due, 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 Pasco, Washington, or, at the option of the holder hereof, at either of the fiscal agencies of the State of Washington in the Cities of Seattle, Washington, or New York, New York. This bond is one of an issue of $820,000.00 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 Pasco pursuant to a special election authorizing the same for strictly municipal capital purposes, other than the replacement of equipment, to -wit, -3- for the purpose of paying the City's share of the cost of carrying out Phase I of the Pasco -Kennewick intercity bridge project over the Columbia River, all as provided in Ordinance No. 1434 of the City Council, passed July 7, 1970, and is issued in full compliance with the ordinances of the City of Pasco and the laws and constitution of the State of Washington. The City of Pasco reserves the right to redeem any or all of the outstanding bonds of this issue at par, plus accrued interest, on any semiannual interest payment date, on or after November 1, 1981, in inverse numerical order, highest numbers first, by publishing notice of such intended redemption 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, and by mailing a copy of such notice within the same period to [the original purchaser or the account manager of the underwriters who purchase the bonds]. 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, but the mailing of such notice to such corporations shall not be a condition precedent to the redemption of such bonds. Interest on any bonds so called for redemption shall cease on such call date upon payment of the redemption price into the bond redemption fund. The City of Pasco hereby irrevocably pledges 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 the bonds. It is hereby certified that all acts, conditions 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 limitations. IN WITNESS WHEREOF, the City of Pasco, Washington, has caused this bond to be signed by the facsimile signature of its Mayor and attested by the manual signature of its Director of Finance, ex officio City Clerk and its corporate seal to be hereto affixed and the interest coupons attached to be signed with the facsimile signatures of said officials this first day of November, 1971. CITY OF PASCO, WASHINGTON By (facsimile signature) Mayor ATTEST; Director of Finance, ex officio City Clerk -4- Coupon No. On the FIRST DAY OF (MAY)(NOVEMBER), 19 , the CITY OF PASCO, WASHINGTON, upon presentatl-on and surrender of this coupon will pay to the bearer at the office of the Treasurer of the City of Pasco, Washington, or, at the option of the holder, at either of the fiscal agencies of the State of Washington in the Cities of Seattle, Washington, or New York, New York, the amount shown hereon in lawful money of the United States of America, said sum being the semiannual interest due that date on its "General Obligation Bridge Bond, 1971," dated November 1, 1971, and numbered CITY OF PASCO, WASHINGTON By (facsimile signature) Mayor ATTEST: (facsimile signature) Director of Finance, ex officio City Clerk Section 5. The bonds shall be printed or lithographed on good bond paper and shall be signed by the facsimile signature of the Mayor and attested by the manual signature of the Director of Finance, ex officio City Clerk of the City of Pasco under the seal of the City, and the coupons shall bear the facsimile signatures of the Mayor and the Director of Finance, ex officio City Clerk. Section 6. There are hereby created and established in the office of the City Treasurer two special funds, one to be known and designated as the "General Obligation Bridge Bond Fund, 1971," and the other to be known and designated as the "City of Pasco Bridge Construction Participation Fund, 1971." The principal of and interest on the bonds shall be paid out of the "General Obligation Bridge Bond Fund, 1971." The accrued interest received from the sale of the bonds shall be paid into said bond redemption fund and the balance of the principal --proceeds received shall be paid into the "City of Pasco Bridge Construction Participation Fund, 1971," and expended to pay the City's share of the cost of carrying out Phase I of the Pasco -Kennewick intercity bridge project over the Columbia River, as provided by Ordinance No. 1434, passed July 7, 1970. All taxes -5- collected for the payment of the principal of and interest on the bonds shall be deposited in the "General Obligation Bridge Bond Fund, 1971." 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 and considered in accordance with 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 Pasco and such notice shall also be published 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 Manager of the City of Pasco, Washington, at his office in the City Hall, Pasco, Washington, on October 19, 1971, up to 2:00 o'clock p.m. (PDST), at which time and place the bids will be opened and read, and the bids will be considered and awarded at the regular meeting of the City Council to be -held in the Council Chambers in the City Hall commencing at 8:00 o'clock p.m. on the same date. 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 Section 1 hereof. The notice shall specify the maximum effective rate of interest the bonds shall bear, to -wit, 8% 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. WAS 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 additional or supplemental coupons will be rejected. The maximum differential 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 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 of the City of Pasco 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 $41,000.00. The deposit shall be either cash or by certified or cashier's check made payable to the City Treasurer of the City of Pasco 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 Pasco 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 Pasco, or in the City of Seattle, at the City's expense, or at such other place as the Treasurer and the successful Mfg 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. Any bid presented after the hour specified for the receipt of bids will not be received, and any bid not accompanied by the required bid deposit at the time of opening such bid will not be read or considered. The Director of Finance, ex officio City Clerk of the City of Pasco shall be and 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 Pasco will cause the bonds to be printed or lithographed and signed and will furnish the approving legal opinion of Roberts, Shefelman, Lawrence, Gay & Moch, municipal bond counsel of Seattle, Washington, without cost to the purchaser, said opinion also being printed on each bond. Such notice shall further provide that information concerning the bonds may be received upon request made to the Director of Finance, ex officio City Clerk, or to Foster & Marshall Inc., 205 Columbia Street, Seattle, Washington, the City's financial consultants. Section 8. This ordinance is declared to be one necessary for the immediate preservation of the public peace, property, health and safety of the people of the City of Pasco, Washington. An emergency is hereby declared to exist, and this ordinance is hereby declared to be in full force and effect from and after its passage, approval and publication as required by law. we PASSED by the City Council of the City of Pasco, Washington, at a regular meeting thereof, and APPROVED by the Mayor this 7th day of September, 1971. ATTEST: Director 9T Fin`ande, ex offici City Clerk FORM APPROVED: City Attorney mom MayoiV October 20, 1971 Roberts, Shefelman, Lawrence, Gay & Moch 1818 I.B.M. Building Seattle, Washington Attn: James Gay Re: G.O. Bridge Bonds Dear Jim: Attached is copy of Ordinance No. 1496, excerpts of minutes of regular council meeting, held September 7, 1971, and an Affidavit of Publication for completion of your file on the above captioned G.O. Bridge Bonds. Thank you for your continued assistance in this matter. Sincerely,, CITY OF PASCO Harry D. Kinzer Director of Finance HDK:ew Enc: