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HomeMy WebLinkAbout1813 Ordinance7. CITY OF PASCO, WASHINGTON ORDINANCE NO. 1813 + AN ORDINANCE OF THE CITY OF PASCO, WASHINGTON, PROVIDING FOR THE ISSUANCE OF $720,000.00 PAR VALUE OF "LIMITED INTER -CITY BRIDGE GENERAL OBLIGATION BONDS, 1977", OF THE CITY TO PROVIDE A PORTION OF THE CITY'S SHARE OF FUNDS REQUIRED TO COMPLETE THE CONSTRUCTION OF THE PASCO-KENNEWICK INTER -CITY BRIDGE PROJECT; SPECIFYING THE MATURITIES AND FIXING THE FORM AND MAXIMUM EFFECTIVE INTEREST RATE OF SUCH BONDS; ESTABLISHING A "LIMITED INTER -CITY BRIDGE GENERAL OBLIGATION BOND FUND, 1977," AND A "INTER -CITY BRIDGE CONSTRUCTION FUND"; PROVIDING FOR THE SALE OF SUCH BONDS; AND AUTHORIZING AND DIRECTING THE ISSUANCE OF INTEREST BEARING WARRANTS DRAWN UPON THE "INTER -CITY BRIDGE CONSTRUCTION FUND" PENDING THE RECEIPT OF THE PROCEEDS FROM THE SALE OF SUCH BONDS. WHEREAS, the City has heretofore committed itself to construction of the Pasco -Kennewick Inter -City Bridge Project and by Supplemental Agreement entered into by and between the City of Pasco and the City of Kennewick, Washington, and the State of Washington acting by and through the Washington State Highway Commission and the Department of Highways, dated July 15, 1975, the City agreed that by no later than July -29, 1975, it would adopt an appropriate Ordinance authorizing the issuance of General Obligation Bonds in a total amount of $1,163,000.00, the proceeds of which shall be pledged to pay the City's share of construction costs as provided in the Agreement dated January 23, 1975, and the City authorized the issuance and sale of such bonds so authorized from time to time, subject only to the limitations of indebted- ness of cities as set forth in RCW 39.36.020(2), and pursuant to such Supplemental Agreement, Ordinance No. 17239 was passed by the City Council and approved by the Mayor on July 15, 1975, authorizing the issuance of General Obligation Bonds in such total amount but not to exceed th6 amount as may be permitted constitutionally or statutorily at the time of issuance of such bonds to provide the remaining matching funds and the local share required to complete the Pasco -Kennewick Inter -City Bridge Project; and WHEREAS, it is now necessary that the City currently provide funds for such purpose in the maximum amount which it can legally provide within the limit up to 3/4 of 1% of the value of the taxable property within the City permitted without a vote of the electors, which maximum amount is calculated to be $720,000.00; and WHEREAS, the actual and assessed valuation of the taxable property of the City as ascertained by the last assessment for City purposes for the calendar year 1976 is $140,020,371.00, and at the time of the passage of this Ordinance, the existing outstandi•"ng.General indebtedness of the City consists of $152,000.00 par value of 1 'Page' Two 1813 Ordinance No. general obligation bonds issued within the limit up to 3/4 of 1% of the value of the taxable property within the City permitted without a vote of the electors, an unfunded pension system liability plus balance owing on conditional sales contract in the amount of $187,566.00 and $1,407,000.00 par value of general obligation bonds issued within the limit of 2 - 1/2% of the value of taxable property within the City permitted pursuant to a vote of the electors within the City for general municipal s; purposes, and the amount of indebtedness for which bonds herein authorized to be issued is $720,000.00; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON, DO ORDAIN as follows: Section 1, The City of Pasco, Washington (herein called the "City"), shall borrow money on the credit of the City and issue negotiable general -obligation bonds evidencing such indebtedness in the amount of $720,000.00 to provide a part of the moneys required to furnish the City's local share for federal and state matching funds to complete the Pasco -Kennewick Inter -City Bridge Project over the Columbia River as originally authorized -by Ordinance No. 1434 passed by the City Council a,nd approved by the Mayor on July 7, 1970, and to pay the cost of the issuance of the general obligation bonds herein authorized. Such general indebtedness to be incurred shall be within the limit 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. Section 2. The bonds shall be called "Limited Inter -City Bridge General Obligation Bonds, 1977" (in lieu of the designation "Limited General Obligation Bonds, 1975," set forth in Ordinance No. 1723), of the City; shall be dated January 1, 1977; shall be in denominations of $5,000.00 each; shall be numbered from 1 to 144, inclusive; and shall bear interest at an effective rate not to exceed 8% per annum, payable semi- annually on July 1 and January 1 of each year, as evidenced by coupons attached to the bonds representing interest to maturity with full obligation on the part of the City to pay interest at the bond rate, from and after maturity, until the 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 City Treasurer, or, at the option of the holder, at either fiscal agancy of the State of Washington in the Cities of Seattle, Washington, or New York, New York. The bonds shall be numbered and mature -2- 'Page Three Ordinance No. 1813 serially in order of their numbers in the amounts and on the dates as follows: Bond Numbers (Inclusive) Amounts Maturities 1 to 4 $20,000 January 1, 1979 5 to 8 $20,000 January 1, 1980 9 to 13 $25,000 January 1, 1981 14 to 18 $25,000 January 1, 1982 19 to 23 $25,000 January 1, 1983 24 to 29 $30,000 January 1, 1984 30 to 35 $30,000 January 1, 1985 36 to 41 $30,000 January 1, 1986 42 to 48 $35,000 January 1, 1987 49 to 55 $35,000 January 1, 1988. 56 to 63 $40,000 January 1, 1989 64 to 71 $40,000 January 1, 1990 72 to 80 $45,000 January 1, 1991 81 to 89 $45,000 January 1, 1992 90 to 99 $50,000 January 1, 1993 100 to 109 $50,000 January 1, 1994 110 to 120 $55,000 January 1, 1995 121 to 132 $60,000 January 1, 1996 133 to 144 $60,000 January 1, 1997 Section 3. The City hereby reserves the right to redeem any or all of the bonds outstanding in whole, or in part in inverse numerical order, on January 1, 1987, or on any setniiannual interest payment date thereafter, at par plus accrued interest to the date of redemption. Notice of such intended redemption shall be published 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 a copy of such notice shall be mailed within the same period to the original purchaser or the account manager of the 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 Galled for redemption shall cease on such call date upon payment of the redemption price into the bond redemption fund for the bonds. Section 4. The City hereby irrevocably pledges itself to,levy taxes annually, within the constitutional and statutory tax limitations provided by law without a vote of the electors, upon 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 accrue, and the full faith, credit and resources of the City are -3- Page Four 1813 Ordinance No. irrevocably pledged for the payment of the principal and interest on such bonds. Section 5. The bonds shall be substantially in the following form: No. $5,000.00 UNITED STATES OF AMERICA STATE OF WASHINGTON CITY OF PASCO LIMITED INTER -CITY BRIDGE GENERAL OBLIGATION BOND, 1977 KNOW ALL MEN BY THESE PRESENTS: That the City of Pasco, Washington, is justly indebted to and for value received hereby promises to pay to bearer on the FIRST DAY of January, 19 , the sum of FIVE THOUSAND DOLLARS together with interest thereon at the rate of % per annum, payable semiannually on July 1 and January 1 of each year, 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, or, at the option of the holder, at either fiscal agency of the State of Washington in the Cities of Seattle, Washington, or New York, New York. This bond is one of a total issue of $720,000.00 par value of bonds, all of like date, tenor and effect, except for maturities (and interest rates if more than one interest rate is bid),.issued by the City for general municipal purposes, for the purpose of providing a portion of the City's share of funds required to complete the con- struction of the Pasco -Kennewick Inter -City Bridge Project, and is issued in full compliance with the Ordinances.of the City and the laws and Constitution of the State of Washington. The City reserves the right to redeem any or all of the bonds out- standing in whole, or in part in inverse numerical order, on January 1, 1987, or on any semi-annual interest payment date there- after, at par plus accrued interest to the date of redemption. Notice os fuch intended redemption shall be published 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 a copy of such notice shall be mailed within the same period to (the original purchaser or the account manager of the 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. The City hereby irrevocably pledges itself to levy taxes annually, with- in the constitutional and statutory tax limitations provided by law without a vote of the electors, upon all property in the City subject to taxation -4- -Page Five 1813 Ordinance No. in an amount sufficient to Oay the parincipal of and interest on the bonds of this issue as the same shall accrue, and the full faith, credit and resources of the City are hereby irrevocably pledged for the payment of 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 i-ts 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 those officials this first day of January, 1977. CITY OF PASCO, WASHINGTON BY (facsimile signature) Mayor ATTEST: Director of Finance, ex officio City Clerk The form of the interest coupons shall be substantially as follows: Coupon No. ON THE FIRST DAY OF (JULY) (JANUARY), 19 , the CITY OF PASCO, WASHINGTON, upon presentation and surrender of this coupon, will pay to the bearer at the office of the Treasurer of the -City, or, at the option of the holder, at either fiscal agency of the State of Washington in the Cities of Seattle, Washington, or New York, New York, the sum shown hereon in lawful money of the United States of America, that sum being the semi-annual interest due that date upon its "Limited Inter -City Bridge General Obligation Bond, 1977," dated January 1, 1977, and numbered CITY OF PASCO, WASHINGTON BY (facsimile signature) Mayor ATTEST: (facsimile signature). Director of Finance, ex officio City Clerk Section 6. The bonds shall be printed or lithographed on good bond paper -5- Page Six 1813 Ordinance No. 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, 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 7. There are hereby created and established in the Office of the City Treasurer, two special funds to be known and designated as the "Limited Inter -City Bridge General Obligation Bond Fund, 1977" (in lieu of the fund directed to be created by Ordinance No. 1723 and therein designated as the Limited General Obligation Bond Fund, 1975"), and the "Inter -City Bridge Construction Fund" of the City. The accrued interest received, if any, shall be paid into the "Limited Inter - City Bridge General Obligation Bond Fund, 1977," and the principal proceeds received from the sale of the bonds shall be paid into the "Inter -City Bridge Construction Fund" of the City. All taxes collected for and allocated to the payment of the principal of and interest on the bonds and any other moneys lawfully available there- for by action of the City council shall hereafter be deposited in the "Limited Inter - City Bridge General Obligation Bond Fund, 1977." Pending the receipt of the proceeds from the sale of the "Limited Inter -City Bridge General Obligation Bonds, 1977", the City may issue interest-bearing registered warrants to be drawn upon the "Inter -City Bridge Construction Fund" to provide moneys required to pay proper charges against such fund, including the City's local share for federal and state matching funds for the Pasco -Kennewick Inter -City Bridge Project, such interest bearing warrants to be paid out of proceeds received from the sale of such bonds and/or from any other moneys available to the City to finance such project to be deposited in such special fund, such interest bearing warrants to bear such interest rate as may be negotiated between the City Manager and any banking institution agreeing to make a market for such warrants in accordance with the provisions of Resolution No. 1046, adopted by the City Council on July 20, 1976. Section 8. The bonds shall be sold for cash at public sale for not less than par, plus accrued interest, upon sealed bids to be received at the Office of the Director of Finance, ex officio City Clerk, up to the day and hour stated in the Notice of Bond Sale hereinafter directed to be given. ' Page' Seven 1813 Ordinance N:a. Notice calling for bids to purchase such bonds shall be published once a week for four consecutive weeks in the official newspaper of the City. Such notice shall specify that bids for the purchase of the bonds shall be received at the Office of the Director of Finance, ex officio City Clerk, at the City Hall, Pasco, Washington, on December 7, 1976, until 1:00 o'clock p.m. (PST), and such bids will be publicly opened and considered by the City Council at a meeting thereof to be held in the Council Chambers in the City Hall on the same date commencing at 8:00 o'clock p.m. (PST). 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 2 hereof. The notice shall specify the maximum effective rate of interest the bonds shall bear, 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. 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 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%. The interest rate stated for any maturity in the years 1993 to 1997, inclusive, shall not be less than the interest rate stated in any preceding year of said years 1993 to 1997, inclusive. For the purpose of comparing 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 will 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 -7- Page Eight 1813 Ordinance Nov 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 $36,000.00. The deposit shall be,either cash or by certified or cashier's check made payable to the City Treasurer 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 its bid, the amount of -its deposit shall be forfeited to the City 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 City Treasurer, or in the City of Seattle, Washington at the City's expense, or at such other place as the City Treasurer and the successful 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 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, 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 will cause the bonds to be printed or lithographed and signed and will furnish the approving legal opinion of Messrs. Roberts, Shefelman, Lawrence, Gay & Moch, municipal bond counsel of Seattle, Washington, covering the bonds without cost to the purchaser, the opt6don also being printed on each bond. Section 9. This Ordinance is declared to be one necessary for the immediate preservation of the public peace, property, health and safety 6f the people of the City. 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 publi- cation as required by law. Page Nine 1813 Ordinance No. PASSED by the City Council of the City of Pasco, Washington, and APPROVED by the Mayor at a recessed regular open public meeting thereof, of which due notice had been given in the manner required by law, this 31st day of August, 1976. J J r TIDRICK, MAYOR ATTEST: Leo E.`Olney, Director of Finance an ex officio City •C1'erk APPROVED AS-TO`FORM: 4ti_>k�TRoa h, City Attorney