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HomeMy WebLinkAbout1971 - Ord 0670 - 1971 GO Bond Fund - 7105100422 AMENDED BY ORD 7 3/ CQ CV CITY OF TUKWILA, WASHINGTON CD ORDINANCE NO. 670 G ?D CD AN ORDINANCE of the City of Tukwila, Wash- ington, providing for the issuance and sale of $175,000.00 par value of "General Obligation Bonds, 1971," of the City to provide City matching funds for urban arterial projects to be undertaken within the City; specifying the maturities and fixing the form and maximum effective interest rate of such bonds; estab- lishing a "General Obligation Bond Fund, 1971 and providing for the sale of such bonds. WHEREAS, the City is in urgent need of carrying out various urban arterial projects and the City does not have available sufficient( funds to meet the requirements of the Urban Arterial Board to provide matching funds for such urban arterial projects, the estimated amount of such matching funds being $175,000.00; and WHEREAS, the assessed valuation of the taxable property of the City as ascertained by the last preceding assessment for City purposes for the calendar year 1971 is $64,096,566.00, and the City has no outstanding general indebtedness, and the amount of indebtedness for which bonds are herein authorized to be issued is $175,000.00; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, DO ORDAIN, as follows: Section 1. The City of Tukwila shall borrow money on the credit of the City and issue negotiable general obligation bonds evidencing such indebtedness in the amount of $175,000.00 to provide matching funds for urban arterial projects to be undertaken within the City 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 "General Obligation Bonds, 1971," of the City of Tukwila, Washington, shall be dated July 1, 1971, shall be in denominations of $5,000.00 each, shall be mot' O "O numbered from 1 to 35, inclusive, and shall bear interest at an In O effective rate not to exceed 8% per annum, payable semiannually on January 1 and July 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 of Tukwila, Washington. The bonds shall mature serially in order of their numbers on July 1 in the years and amounts as follows: Years Amounts 1973 $15,000 1974 15,000 1975 20,000 1976 20,000 1977 20,000 1978 20,000 1979 20,000 1980 20,000 1981 25,000 Section 3. The City reserves the right to redeem any or all of the outstanding bonds at par, plus accrued interest, on any semiannual interest payment date, on or after July 1, 1978, 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. Notice of such intended redemption shall also be mailed to the principal underwriter or manager of the account of the successful bidder at its principal place of business not more than forty -five nor less than thirty days prior to the call date. 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 notices to such corporations shall not be a condition precedent to the redemption of such bonds. Interest on -2- any bonds so called for redemption shall cease on the date fixed for such redemption upon payment of the redemption price into the bond N redemption fund. CV Section 4. The City of Tukwila hereby irrevocably pledges O CD itself to levy taxes annually, within the constitutional and statutory O tax limitations provided by law, 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 hereby irrevocably pledged for the payment of the principal of 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 TUKWILA GENERAL OBLIGATION BOND, 1971 KNOW ALL MEN BY THESE PRESENTS: That the City of Tukwila, Washington, is justly indebted to and for value received hereby promises to pay to bearer on the FIRST DAY OF JULY, 19 the sum of FIVE THOUSAND DOLLARS together with interest thereon at the rate of PERCENT per annum, payable semiannually on January 1 and July 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 City Treasurer of the City of Tukwila, Washington. This bond is one of a total issue of $175,000.00 par value of bonds, all of like date, tenor and effect, except as to maturities (and interest rates if more than one interest rate is bid), issued by the City of Tukwila for general municipal purposes, to -wit, for the purpose of providing City matching funds for urban arterial projects to be undertaken within the -3- City, and issued in full compliance with the ordinances of the City of Tukwila and the laws and constitution of the State of Washington. Nt The City of Tukwila has reserved the right to redeem CD any or all of the outstanding bonds of this issue at par, plus accrued interest, on any semiannual interest payment date, on or after July 1, 1978, in inverse O 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. Notice of such intended redemption shall also be mailed to [the original purchaser or the account manager of the underwriters who purchase the bonds] not more than forty -five nor less than thirty days prior to the call date. 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 notices 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 the date fixed for such redemption upon payment of the redemption price into the bond redemption fund. The City of Tukwila hereby irrevocably pledges itself to levy taxes annually, within the constitutional and statutory tax limitations provided by law, upon all property in the City subject to taxation in an amount sufficient to pay the principal 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 said 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 Tukwila, Washington, has caused this bond to be signed by the facsimile signature of its Mayor and attested by the manual signature of its 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 July, 1971. CITY OF TUKWILA, WASHINGTON By (facsimile signature) Mayor ATTEST: City Clerk -4- The form of the interest coupons shall be substantially as f'+J follows: O Coupon No. 0 CD On the FIRST DAY OF (JANUARY)(JULY), 19 the CITY OF TUKWILA, WASHINGTON, upon presentation and surrender of this coupon, will pay to the bearer at the office of the City Treasurer the sum shown hereon in lawful money of the United States of America, said sum being the semiannual interest due that date upon its "General Obligation Bond, 1971," dated July 1, 1971, and numbered CITY OF TUKWILA, WASHINGTON By (facsimile signature) Mayor ATTEST: (facsimile signature) City Clerk Section 6. 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 City Clerk of the City of Tukwila, Washington, under the seal of the City and the coupons shall bear the facsimile signatures of the Mayor and the City Clerk. Section 7. There is hereby created and established in the office of the City Treasurer a special fund to be known and designated as the "General Obligation Bond Fund, 1971," of the City. The accrued interest received, if any, shall be paid into the "General Obligation Bond Fund, 1971," and the principal proceeds received from the sale of the bonds shall be paid into the "Urban Arterial Fund" of the City. All taxes collected for and allocated to the payment of the principal of and interest on the bonds shall hereafter be deposited in the "General Obligation Bond Fund, 1971." 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 City Clerk up to the day and hour stated in the Notice of Bond Sale hereinafter directed to be given. -5- Notice calling for bids to purchase such bonds shall be N published once a week for four consecutive weeks in the official CD CD newspaper of the City of Tukwila and such notice shall also be CD 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 purchase of the bonds shall be received by the City Clerk of the City of Tukwila at the Council Chambers of the City Hall of the City on ■,/»/E 17 1971, up to o' clock P m. (PDST), at which time all bids will be publicly opened for the purchase of the bonds. 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 of this ordinance. 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. For the purpose of evaluating 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 such bid. 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 -6- The bonds shall be sold to the bidder making the best bid, C\J N subject to the right of the City Council of the City of Tukwila to O O reject any and all bids and to readvertise the bonds for sale in the O 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 $8,750.00. The deposit shall be either cash or by certified or cashier's check made payable to the City Treasurer of the City of Tukwila, 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 Tukwila 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 the bonds 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 of the City of Tukwila or in the City of Seattle 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 deposit at the time of opening such bid will not be read or considered. The City Clerk of the City of Tukwila 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 Tukwila will cause the bonds to be printed or lithographed and signed and will -7- L ,I furnish the approving legal opinion of Messrs. Roberts, Shefelman, -7' 0 Lawrence, Gay Moch, municipal bond counsel of Seattle, Washington, 0 covering the bonds 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 City Clerk, or to McLean Company, Inc., the City's financial consultants, at 770 Commerce Street, Tacoma, Washington. Section 9. 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 Tukwila, 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 provided by law. PASSED by the City Council of the City of Tukwila, Washington, and APPROVED by its Mayor at a regular meeting thereof held on the 3rd day of May, 1971. Mayor ATTEST: City Clerk /N- Hit i FORM APPRO "D: i J' 'o t C ity Attorn- "f`� h Published Record Chronicle May 7, 1971 ra --s -8-