ORD 80-02 ACQUISITION & IMPROVEMENT OF A CIVIC CENTER PARKING LOTCITY OF WINSLOW, WASHINGTON
ORDINANCE NO. 80-02
AN ORDINANCE Of the City of Winslow, Washington,
relating to the acquisition and improvement of a
civic center parking lot; authorizing contracting
indebtedness; providing for the issuance, speci-
fying the maturities, maximum effective interest
rate, terms and covenants of $215,000 par
value of "Limited Tax General Obligation Bonds,
1980," of the City for strictly City purposes to
provide funds with which to pay the cost of
acquiring and improving that civic center parking
lot; establishing a bond redemption fund and an
acquisition and construction fund; and providing
for the sale of such bonds.
WHEREAS, Resolution No. 75- 2, after a duly held public
hearing thereon, adopted by the City Council on April 7, 1975, adopted
for the City of Winslow (hereinafter called the "City") the Compre-
hensive Plan now applicable to the City, which plan, after the making
of such economic and physical surveys deemed necessary by the Mayor
and City Council, included a plan for off-street parking; and
WHEREAS, the City has need to implement a portion of that
off-street parking plan by providing additional parking spaces to
serve the City's civic center, the estimated cost of which is
$215,000, and the City does not have available sufficient funds to
pay the cost; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF WINSLOW, WASHINGTON, DO
ORDAIN as follows:
Section 1. The City Council finds that the increased use
of the City's civic center has resulted in severe traffic congestion
in the vicinity of the civic center. The City Council declares that
it is necessary to provide additional off-street motor vehicle parking
spaces for persons using or visiting the City's civic center, and
the City plans to complete the acquisition and improvement of land
adjacent to the civic center for that purpose, all in accordance with
the Comprehensive Plan of the City, including the off-street parking
provisions therein. Parking spaces on that land not presently re-
quired for that purpose may be used for other off-street parking
purposes and charge parking fees therefor as long as the City com-
plies with all applicable laws and regulations.
Section 2. The assessed valuation of the taxable property
of the City as ascertained by the last preceding assessment for City
purposes for the calendar year 1980 is $55,162,977, and the City
has outstanding general indebtedness evidenced by limited tax
general obligation bonds of $16,000 incurred within the limit of
up to 3/4 of 1% of the value of the taxable property within the City
permitted for strictly municipal purposes without a vote of the
qualified voters therein, and has a general indebtedness outstanding
evidenced by unlimited tax general obligation bonds in the principal
amount of $185,000 issued pursuant to a vote of the qualified
voters of the City for strictly capital purposes and the amount of
indebtedness for which bonds are authorized to be issued by this
ordinance is $215,000.
Section 3. The City shall borrow money on the credit of
the City and issue negotiable limited tax general obligation bonds
evidencing such indebtedness in the amount of $215,000 for strictly
City purposes to provide the funds to pay the cost of acquiring and
improving land to provide additional off-street parking for the
City's civic center as above described and to pay the cost of the
issuance of the bonds. 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 4. The bonds shall be called "Limited Tax General
Obligation Bonds, 1980" (the "Bonds"), of the City; shall be dated
March 1, 1980; shall be in denominations of $5,000 each; shall be
numbered from 1 43, inclusive; and shall bear interest at an
effective rate not to exceed 9-1/2% per annum, payable on September 1,
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1980, and semiannually thereafter on each succeeding March 1 and
September 1 as evidenced by coupons to be attached to the Bonds
representing interest to maturity, and in the event any Bond is not
redeemed when duly presented at maturity, with full obligation on
the part of the City to pay interest at the bond rate from and after
maturity until that Bond, both principal and interest, is paid in
full or until sufficient money for such payment in full is on deposit
in the "Limited Tax General Obligation Bond Fund, 1980" (the "Bond
Fund"), hereinafter created and such Bond has been duly called for
payment. Both principal of and interest on the Bonds are to be paid
in lawful money of the United States of America, which at the time
of payment shall be legal tender for the payment of public and
private debts, at the office of the City Clerk-Treasurer, or, at
the option of the holder, at either fiscal agency of the State of
Washington in Seattle, Washington, or New York, New York. The Bonds
shall mature serially, annually, in order of their numbers in the
following amounts on March 1 of each of the following years (such
maturity schedule being computed at an assumed interest rate of
8.6 % per annum ):
Bond Numbers Maturity
( Inc 1 us i ve ) Amounts Year s
1 $ 5,000 1982
2 5,000 1983
3 5,000 1984
4 5,000 1985
5 5,000 1986
6 5,000 1987
7 to 8 10,000 1988
9 to 10 10,000 1989
11 to 12 10,000 1990
13 to 14 10,000 1991
15 to 16 10,000 1992
17 to 18 10,000 1993
19 to 21 15,000 1994
22 to 24 15,000 1995
25 to 27 15,000 1996
28 to 30 15,000 1997
31 to 34 20,000 1998
35 to 38 20,000 1999
39 to 43 25,000 2000
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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 March 1, 1990, or 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, or if there is no official news-
paper, then in a newspaper of general circulation in Kitsap County,
at least once not less than 30 nor more than 45 days prior to the
call date, and a copy of such notice shall be mailed within the same
period to the main office of the principal underwriter or account
manager of the successful bidder for the Bonds, or its successor.
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
New York corporations shall not be a condition precedent to the
redemption of such Bonds. Interest on any Bonds so called for re-
demption s. hall cease on such call date upon payment of the redemption
price into the Bond Fund.
Section 5. 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 of the
City, upon all property in the City subject to taxation in an amount
sufficient, together with other money legally available and to be
used therefor, 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 have been irrevocably pledged for the payment of the
principal of and interest on the Bonds.
Section 6. The City hereby covenants that it will make
no use of the proceeds of the Bonds or of its other money at any
time during the term of the Bonds which, if such use had been
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reasonably expected at the date the Bonds are issued, would have
caused the Bonds to be arbitrage bonds within the meaning of Section
103(c) of the United States Internal Revenue Code of 1954, as amended,
and applicable regulations promulgated thereunder.
Section 7. The Bonds and coupons shall be printed or
lithographed on good bond paper in a form consistent with the pro-
visions of this ordinance. The Bonds shall be signed by the facsimile
signature of the Mayor and attested by the manual signature of the
City Clerk-Treasurer under the seal of the City, and the coupons
shall bear the facsimile signatures of the Mayor and the City Clerk-
Treasurer.
Section 8. The Bond Fund is hereby created and established
in the office of the City Clerk-Treasurer. The accrued interest and
premium received, if any, upon the sale and delivery of the Bonds
shall be paid into the Bond Fund. There is hereby also created and
established in the office of the City Clerk-Treasurer a special fund
to be known and designated as the "Civic Center Parking Lot Fund,
1980" (the "Construction Fund"), of the City. The principal proceeds
received from the sale and delivery of the Bonds shall be paid into
the Construction Fund and used for the purposes specified in
Sections 1 and 3 of this ordinance and to pay the costs of issuance
and sale of the Bonds. All taxes collected for and allocated to
the payment of the principal of and interest on the Bonds' shall
hereafter be deposited in the Bond Fund. Pending the receipt of
the proceeds from the issuance of the Bonds, interest-bearing warrants
may be drawn on the Construction Fund to provide interim funds
pay such costs, such loan to be repaid from the proceeds received
from the issuance of the Bonds. Money deposited in the Bond Fund
and Construction Fund may be invested in any legal investment per-
mitted to the City, and the earnings from those investments shall be
deposited into the respective funds from which such investments were
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made. Any money remaining in the Construction Fund after all the
costs are paid shall be transferred to the Bond Fund.
Section 9. The Bonds shall be sold for cash at public
sale for not less than par, plus accrued interest.
The City Clerk-Treasurer is hereby authorized to give notice
calling for bids to purchase the Bonds by publishing the same once
a week for four consecutive weeks in the official newspaper of the
City, or if there is no official newspaper, then in a newspaper of
general circulation in Kitsap County and a short abbreviated form
of such notice shall also be published once in The Seattle Daily
Journal of Commerce and Northwest Construction Record of Seattle,
Washington, at least ten days prior to the sale date. Such notice
shall specify that sealed bids for the purchase of the Bonds shall
be received by the City Clerk-Treasurer in her office in the City
Hall on March 12, 1980, up to 11: 00 a.m., local time, at which
time all bids will be considered and award made by the City Council
at a special meeting to be held in the City Council Chambers
commencing at 7:30 p.m., local time, 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 4 hereof.
The notice shall specify the maximum effective rate of
interest the Bonds shall bear, namely, 9-1/2% 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.
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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 1/8th or 1/20th 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 of the
Bonds 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 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 further reserves the right to waive any irregularity 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 $10,750. The deposit shall be either by certified check or
cashier's check made payable to the City Clerk-Treasurer and shall
be promptly returned if the bid is not accepted. The City reserves
the right to invest the good faith deposit of the purchaser pending
the payment for the Bonds. The purchaser shall not be credited for
such earnings. If the Bonds are ready for delivery and the successful
bidder shall fail or 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
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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 shall be accepted. The Bonds will be
delivered to the successful bidder at the office of the City Clerk-
Treasurer or in Seattle, Washington, at the City's expense, or at
such other place as the City Clerk-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 time 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.
If, prior to the delivery of the Bonds, the income re-
ceivable by the holders thereof shall become taxable, directly or
indirectly, by the terms of any federal income tax law, the success-
ful 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 notice of bond sale 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 opinion also
being printed on each bond. Bond counsel shall not be required to
review or express any opinion concerning the completeness or accuracy
of any official statement, offering circular or other sales material
issued or used in connection with the Bonds, and bond counsel's
opinion shall so state. Such notice shall also provide that further
information regarding the details of the Bonds may be received upon
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request made to Wm. P. Harper & Son & Company, Governments and
Special Services, the City's financial consultant.
Section 10. This ordinance shall take effect from and
after its passage and five (5) days following its publication as
required by law.
PASSED by the City Council and APPROVED by the Mayor of
the City of Winslow, Washington, at a regular open public meeting
thereof, this/~..//~ day of February, 1980.
ATTEST:
Mayor
FORM-~APP ROVED:
'---~ City Attorney
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