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HomeMy WebLinkAboutOrd 1052 - Limited General Obligation Bonds for Foster Golf Course Acquisition COUNCIL A�, LION MEETING DATE I AGE;7JA (T E ACTION TYPE f 42/4) 1-447 9 1,e4 r CITY OF TUKWILA, WASHINGTON I ORDINANCE NO. 1052 AN ORDINANCE of the City of Tukwila, Washington, providing for the issuance of $450,000 par value of "Limited General Obligation Bonds, 1978," of the City to provide funds to pay part of the cost of acquiring certain real properties known as the "Foster Golf Links," for recreational purposes and making certain capital improvements thereto; specifying the maturities and fixing the form and maximum effective interest rate of such bonds; establishing a "Limited General Obligation Bond Fund, 1978 and providing for the sale of such bonds. WHEREAS, the City is in urgent need of additional land and facilities for park and recreation purposes, and the City does not have available sufficient funds to meet the estimated cost thereof; and WHEREAS, certain real property within the City consisting of approximately 73 acres,, including the 18 -hole golf course known as the "Foster Golf Links," together with the clubhouse and buildings thereon, has become available for purchase by the City for park and recreation purposes, and the City does not have sufficient funds to pay the acquisition cost thereof and the cost of making certain capital improvements thereto which is estimated to be $2,300,000.00, of which $1,850,000.00 will be paid from the proceeds of the "Unlimited General Obligation Bonds, 1978," the issuance of which was authorized by the qualified voters of the City at a special election held on November 2, 1976, in conjunction with the general state election held on the same date, pursuant to Ordinance No. 987 passed September 7, 1976, and as authorized by Ordinance No. /DS"/ passed March 6, 1978; and WHEREAS, the assessed valuation of the taxable property of the City as ascertained by the last assessment for City purposes for the calendar year 1978 is $360,409,786.00, and at the time of the passage of this ordinance, the City's only outstanding general indebtedness consists of $85,000.00 principal amount of its "General Obligation Bonds, 1971," dated July 1, 1971, and $1,500,000.00 principal amount of its "Limited General Obligation Bonds, 1977," dated November 1, 1977, both issued within the limit up to 3/4 of 1% of the value of taxable property within the City permitted without a vote of the electors, and the City has $1,850,000.00 of authorized but unissued "Unlimited General Obligation Bonds, 1978," as aforesaid, and the amount of the indebtedness for which bonds are herein authorized to be issued is $450,000.00; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, DO ORDAIN, as follows: Section 1. The City of Tukwila, Washington (hereinafter 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 $450,000.00 to provide funds to pay part of the cost of acquiring certain real properties known as the "Foster Golf Links" for recreational purposes and making certain capital improvements thereto and to pay a part of 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 General Obligation Bonds, 1978," of the City, shall be dated April 1, 1978, shall be in denominations of $5,000.00 each, shall be numbered from 1 to 90, inclusive, and shall bear interest at an effective rate not to exceed 8% per annum, payable on April 1, 1979, and semiannually thereafter on each succeeding October 1 and April 1, as evidenced by coupons attached to the bonds representing interest to maturity with full obligation on the part of the City to pay interest -2- 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 Finance Director, 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 bonds shall be payable serially over a period of from two to fifteen years from the date of issue and shall mature in order of their numbers (based on an assumed interest rate of 5 -1/2% per annum) as follows: Bond Numbers (Inclusive) Amounts Maturities 1 to 4 20,000 April 1, 1980 5 to 9 25,000 April 1, 1981 10 to 14 25,000 April 1, 1982 15 to 19 25,000 April 1, 1983 20 to 24 25,000 April 1, 1984 25 to 30 30,000 April 1, 1985 31 to 36 30,000 April 1, 1986 37 to 42 30,000 April 1, 1987 43 to 49 35,000 April 1, 1988 50 to 56 35,000 April 1, 1989 57 to 64 40,000 April 1, 1990 65 to 72 40,000 April 1, 1991 73 to 81 45,000 April 1, 1992 82 to 90 45,000 April 1, 1993 Section 3. The City reserves 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 April 1, 1988, or on 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 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 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 the bonds. Interest on any bonds so called for redemption shall cease on such call date -3- upon payment of the redemption price into the bond redemption fund for such 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 hereby irrevocably pledged for the payment of the principal of and interest on such bonds. Section 5. The bonds shall be designated "Limited General Obligation Bonds, 1978," and shall be in substantially the following form: No. $5,000.00 UNITED STATES OF AMERICA STATE OF WASHINGTON CITY OF TUKWILA LIMITED GENERAL OBLIGATION BOND, 1978 The City of Tukwila, Washington (hereinafter called the "City is justly indebted to and for value received hereby promises to pay to bearer on the FIRST DAY OF APRIL, 19 the sum of FIVE THOUSAND DOLLARS together with interest thereon at the rate of per annum, until fully paid, payable on April 1, 1979, and semiannually thereafter on each succeeding October 1 and April 1, 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 Finance Director 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. -4- This bond is one of an issue of $450,000.00 of bonds of like date, tenor and effect, except as to maturities [and interest rates if more than one interest rate is bid], issued by the City for general municipal purposes, for the purpose of providing part of the funds to acquire by purchase certain real property within the City consisting of approximately 73 acres, including the 18 -hole golf course known as the "Foster Golf Links," together with the clubhouse and buildings located thereon, and to make certain capital improvements thereto, 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 prior to their stated maturity dates as a whole, or in part in inverse numerical order, on April 1, 1988, or on any semiannual interest payment date thereafter, at par plus accrued interest to date of redemption. Notice of such intended redemption shall be pub- lished 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 underwriters who purchase 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 corporation 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, 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 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 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 April, 1978. CITY OF TUKWILA, WASHINGTON By (facsimile signature) Mayor -5- ATTEST; City Clerk The form of the interest coupons shall be substantially as follows: Coupon No. (Unless the bond referred to below has been previously redeemed) On the FIRST DAY OF (APRIL) (OCTOBER) 19 the CITY OF TUKWILA, WASHINGTON, upon presentation and surrender of this coupon will pay to the bearer at the office of the Finance Director, 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 amount shown hereon in lawful money of the United States of America, said sum being the interest due that date on its "Limited General Obligation Bond, 1978," dated April 1, 1978, 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 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 Finance Director a special fund to be known and designated as the "Limited General Obligation Bond Fund, 1978," of the City. The accrued interest received, if any, shall be paid into the "Limited General Obligation Bond Fund, 1978," and the principal proceeds received from the sale of the bonds shall be paid into the "Foster Golf Links Acquisition Fund" created and established in the office of theFinance Director by Ordinance No. /OS/ All taxes collected for and allocated to the payment of the -6- principal of and interest on the bonds, and any other money lawfully available therefor by action of the City Council, shall hereafter be deposited in the "Limited General Obligation Bond Fund, 1978." Section 8. The City hereby covenants that it will not make any use of the proceeds of the sale of the bonds or any other funds of the City which may be deemed to be proceeds of such bonds pursuant to Section 103(c)(2) of the Internal Revenue Code, as amended, and the applicable Regulations thereunder which, if such use had been reasonably expected on the date of delivery of the bonds to the initial purchaser thereof, would have caused such bonds to be "arbitrage bonds" within the meaning of that section and those regulations. Section 9. 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. 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 and a short form of such notice shall also be published 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 Clerk of the City in such official's office in the City Hall, 14475 59th Avenue South, Tukwila, Washington, on April 3, 1978, up to 2 :00 o'clock p.m. (PST), at which time all bids for the purchase of the bonds will be publicly opened and read and such bids will be considered and an award made by the City Council at its regular meeting to be held in the Council Chambers in the City Hall on the same day beginning at 7:00 o'clock p.m. (PST). A copy of the notice shall, at least three weeks prior to the date fixed for sale, be mailed to the State Finance Committee, Olympia, Washington. -7- 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, 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. Coupon rates shall be in multiples of 1/8 of 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 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. The City reserves the right to waive any irregularity or informality in any bid or in the bidding process. 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 $22,500.00. The deposit shall be either by certified or cashier's check made payable to the Finance Director of the City 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 -8- the acceptance of its bid, the amount of its deposit shall be for- feited 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 Finance the successful bidder at the office of the Director of the City, or in the City of Seattle, at the City's expense, or at such other Finance place as the Director 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. CUSIP identification numbers may be printed upon the bonds, but neither the failure to print such number on any bond nor any 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 accordance with the terms of the purchase contract. Expenses related to the printing of CUSIP numbers on the bonds shall be paid for by the issuer, except that the CUSIP Service Bureau charge for the assignment of the numbers shall be the responsibility of and shall be paid for by the purchaser. The City Clerk of the City 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 and 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, said opinion also being printed on each bond. Such bond opinion shall state that bond -9- counsel expresses no opinion on the completeness or accuracy of any official statement, offering circular or other sales material relating to the issuance of the bonds prepared by the City or its financial consultant or otherwise used in connection with such bonds. Such notice shall also provide that further information regarding the details of such bonds may be received upon request made to the City Clerk, or to Foster Marshall, Inc., the City's financial consultant, 205 Columbia Street, Seattle, Washington. PASSED by the City Council of the City of Tukwila, Washington, at a regular open public meeting thereof, and APPROVED by the Mayor this 6th day of March, 1978. ei Mayor ATTEST: City Clerk AP ROVED AS TO FORM: 1- E Nar c� City Attorney Published: p -10-