Loading...
HomeMy WebLinkAboutOrd 1033 - City Hall Construction - Issuance and Sale of Bonds COUNCIL ACTION AGE MEETINGf PATE N ACTION TYPE ITEM pA c /4r 1 l /AM. 9& 3 'M 1 9 /6 7e. P 1 1 1 1 CITY OF TUKWILA, WASHINGTON 1 ORDINANCE NO. 1033 /033 1 AN ORDINANCE of the City of Tukwila, Washington, providing for the issuance of $1,500,000 par value of "Limited General Obligation Bonds, 1977," of the City to provide a part of the funds to pay the cost of constructing and equipping a new City Hall on the site of the existing building housing the Public Works Department, Planning Department and Office of Community Development at 6230 Southcenter Boulevard; specifying the maturities and fixing the form and maximum effective interest rate of such bonds; establishing a "Limited General Obliga- tion Bond Fund, 1977," and providing for the sale of the bonds. WHEREAS, the City is in urgent need of a new City Hall and the funds available to the City to pay the cost thereof are inadequate and the City is in need of an additional $1,500,000 to carry out such project; and WHEREAS, the assessed valuation of the taxable property of the City as ascertained by the last preceding assessment for City pur- poses for the calendar year 1977 is $310,619,655, and the amount of City general indebtedness outstanding at the time of the passage of this ordinance consists of $85,000 of general obligation bonds issued within the limitation of 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 and the amount of indebtedness for which bonds are herein authorized to be issued is $1,500,000; 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 $1,500,000 to provide a part of the funds to pay the cost of constructing and equipping a new City Hall on the site of the existing building housing the Public Works Department, Planning Depart- ment and Office of Community Development at 6230 Southcenter Boulevard, and to pay the cost of the issuance of the general obligation bonds herein authorized, the estimated cost of which is $1,891,680 and the balance of such cost shall be paid from other City funds available therefor. 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, 1977," of the City, shall be dated November 1, 1977, shall be in denominations of $5,000 each, shall be numbered from 1 to 300, inclusive, and shall bear interest at an effective rate not to exceed 8% per annum, payable semiannually on May 1 and November 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. The bonds may be registered as to principal only or as to both principal and interest with the privilege of reconversion at the expense of the holder. 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, 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 twenty years from the date of issue and shall mature in order of their numbers as follows (based on an assumed interest rate of 5.5 Bond Numbers (Inclusive) Amounts Maturities 1 to 9 45,000 November 1, 1979 10 to 19 50,000 November 1, 1980 20 to 29 50,000 November 1, 1981 30 to 40 55,000 November 1, 1982 41 to 52 60,000 November 1, 1983 53 to 64 60,000 November 1, 1984 -2- 65 to 77 65,000 November 1, 1985 78 to 91 70,000 November 1, 1986 92 to 105 70,000 November 1, 1987 106 to 120 75,000 November 1, 1988 121 to 136 80,000 November 1, 1989 137 to 153 85,000 November 1, 1990 154 to 171 90,000 November 1, 1991 172 to 190 95,000 November 1, 1992 191 to 210 100,000 November 1, 1993 211 to 231 105,000 November 1, 1994 232 to 253 110,000 November 1, 1995 254 to 276 115,000 November 1, 1996 277 to 300 120,000 November 1, 1997 The City reserves the right and option to redeem the bonds prior to their stated maturity dates as a whole, or in part in inverse numerical order, on November 1, 1987, 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 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 for the bonds. The City further reserves the right to purchase any or all of the bonds in the open market at any time at a price not in excess of par. Section 3. The City hereby irrevocably pledges itself to levy taxes annually, within the constitutional and statutory tax limita- tions 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 -3- 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 4. The bonds shall be substantially in the following form: No. $5,000.00 UNITED STATES OF AMERICA STATE OF WASHINGTON CITY OF TUKWILA LIMITED GENERAL OBLIGATION BOND, 1977 The City of Tukwila (the "City State of Washington, for value received, promises to pay to bearer on the FIRST DAY OF NOVEMBER, 19 the principal sum of FIVE THOUSAND DOLLARS together with interest thereon at the rate of per annum, until fully paid, payable semiannually on May 1 and November 1 of each year with interest to maturity being evidenced by and payable upon the presen- tation 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. The 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 $1,500,000 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, namely, for the purpose of providing a part of the funds to pay the cost of constructing and equipping a new City Hall on the site of the existing building housing the Public Works Department, Planning Department and Office of Community Development at 6230 Southcenter Boulevard, and is issued in full com- pliance with the ordinances of the City and the laws and Constitution of the State of Washington. The City reserves the right and option to redeem the bonds prior to their stated maturity dates as a whole, or in part in inverse numerical order, on November 1, 1987, or on any semiannual interest pay- ment 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 -4- 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 corpora- tions shall not be a condition precedent to the redemp- tion of such bonds. Interest on any bonds so called for redemption shall cease on such call date upon pay- ment of the redemption price into the bond redemption fund. The City further reserves the right to purchase any or all of the bonds in the open market at any time at a price not in excess of par. 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 taxa- tion 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 signa- tures of those officials this first day of November, 1977. CITY OF TUKWILA, WASHINGTON By (facsimile signature) Mayor 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 (MAY)(NOVEMBER), 19 the CITY OF TUKWILA, WASHINGTON, upon presentation and -5- 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 amount shown hereon in lawful money of the United States of America, that sum being the interest due that date on its "Limited General Obligation Bond, 1977," dated November 1, 1977, and numbered CITY OF TUKWILA, WASHINGTON By (facsimile signature) Mayor ATTEST: (facsimile signature) City Clerk REGISTRATION CERTIFICATE This bond may be registered in the name of the holder at the office of the City Treasurer, Tukwila, Washington, or at either fiscal agency of the State of Washington in the Cities of Seattle, Washington, or New York, New York, as to principal only, such registration being noted hereon by the Registrar in the registration blank below, after which no transfer shall be valid unless made by the registered holder or his attorney duly authorized and similarly noted in the registration blank below, but it may be dis- charged from registration by being transferred to bearer after which it shall be transferable by delivery, but it may again be registered as before. The regis- tration of this bond as to principal shall not restrain the transfer of the coupons by delivery but the coupons may be surrendered and the interest made payable only to the registered holder, in which event the Registrar shall note in the registration blank below that the bond is registered as to interest as well as principal. Upon the request of the holder, but always at the expense of the holder, this bond when converted into a bond registered as to both principal and interest may be reconverted into a coupon bond and again con- verted into a bond registered as to principal, or as to both principal and interest, as hereinabove provided. Upon reconversion of this bond, when registered as to principal and interest, into a coupon bond, new coupons representing the interest to accrue hereon to date of maturity shall be attached hereto by the Registrar who shall note in the registration blank below whether the bond is registered as to principal only or payable to bearer. Date In Whose Signature of Regis- Name Regis- Manner of of tration tered Registration Registrar -6- 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 City Clerk under the seal of the,City, and the coupons shall bear the facsimile signatures of the Mayor and the City Clerk. Section 6. There is hereby created and established in the office of the City Treasurer a special fund to be known and designated as the "Limited General Obligation Bond Fund, 1977," of the City. The accrued interest received, if any, shall be paid into the "Limited General Obligation Bond Fund, 1977," and the principal proceeds received from the sale of the bonds shall be paid into the "City Hall Construction Fund" of the City, heretofore created and established in the office of the City Treasurer. All taxes collected for and allocated to the pay- ment of the principal of and interest on the bonds, and any other money lawfully available therefor by action of the City Council, shall here- after be deposited in the "Limited General Obligation Bond Fund, 1977." 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 at the office of the City Clerk up to the date and hour stated in the Notice of Bond Sale hereinafter directed to be given. Notice calling for bids to purchase the bonds shall be pub- lished once a week for four consecutive weeks in the official newspaper of the City and a short abbreviated form of 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 the bids for the purchase of the bonds shall be received by the City Clerk of the City at her office in the City Hall on October 3, 1977, up to 2:00 p.m. (PDST), at which time and place such bids will be publicly opened and such bids will be considered by the City Council and award made at a meeting thereof to be held in the Council Chambers on the same date commencing at 7:00 p.m. (PDST). -7- 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. Bidders are invited to name the rate or rates of interest which the bonds are to bear, not exceeding an effective rate of 8% per annum. Bidders shall 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. The purchaser must pay accrued interest to date of delivery of the bonds. 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 in- stallment 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 will 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 $75,000. The deposit shall be either certified or cashier's check made payable to the Treasurer of the City, which shall be promptly -8- 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 the bonds for not less than par plus accrued interest and such bids are the best bids received, the City Council will 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 Tukwila or in the City of Seattle at the expense of the City, or at such other place as the Treasurer of the City and the successful bidder may mutually agree upon at the purchaser's expense. Settlement shall be made by the purchaser in federal funds. 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 con- sidered. It is understood that if, prior to the delivery of the bonds, the income 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 City will cause the bonds to be printed or lithographed and signed without expense to the successful bidder. 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 accordance with the terms of the purchase contract. All expenses in relation to the printing of CUSIP -9- numbers on the bonds shall be paid by the issuer; provided, however, that the fee of the CUSIP Service Bureau for the assignment of such 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 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, such opinion also being printed on each bond. Such bond opinion shall state that bond counsel expresses no opinion on the com- pleteness 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 advisor or otherwise used in connection with such bonds. A no- litigation certificate will be included in the closing papers. Such notice shall also provide that further information re- garding the details of such bonds may be received upon request made to the City Clerk or to Foster Marshall Inc., 205 Columbia Street, Seattle, Washington 98104, the City's financial consultant. 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 September, 1977. Mayor ATTEST: City Clerk A4ROVED AS TO FORM L--- :444416114k City Atto`rney Published: I'eco(d C1uwn1c -10- Sepl: II 197`7