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HomeMy WebLinkAbout2174c, ORDINANCE NO. 01/7 AN ORDINANCE of the City of Port Angeles, Washington, providing for the issuance of bonds for Local Improvement District No. 203, in the total principal sum of $707,256.03. WHEREAS, by Ordinance No. 2049 of the City of Port Angeles, Washington (the "City "), passed and approved on December 18, 1979, Local Improvement District No. 203 (the "District ") was duly created; and WHEREAS, the improvements provided for in Ordinance No. 203 have been completed and accepted by the City; and WHEREAS, the total cost attributable to the property owners in the District of acquiring, constructing and installing said improvements, plus all costs incidental thereto, is $824,831.43, and an assessment roll for the District in the total amount of $824,831.43 has been confirmed in the manner required by law by Ordinance No. 2157 of the City, passed and approved on July 7, 1981; and WHEREAS, a total of $117,575.40 of the assessments on said assessment roll for the District was paid by property owners during the period permitted by law, as extended by Ordinance No. 2170, passed and approved September 29, 1981, for the payment of assessments without penalty, interest or cost; and WHEREAS, after applying the amount of prepaid assessments to the payment of the cost and expense of the improvements in the District and to the payment of all expenses incidental thereto, it is necessary that the City issue Local Improvement District No. 203 Bonds in an amount equal to the unpaid balance of the assessment roll, to wit, $707,256.03, to pay the balance of such cost and expense; NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Port Angeles, Washington, as follows: • Section 1. For the purpose of paying the costs attributable to the property owners in the District of acquiring, constructing and installing improvements therein, plus all costs incidental thereto, and to redeem all outstanding warrants issued to pay for such improvements, the City shall issue Local Improvement District No. 203 Bonds (the "Bonds ") in the aggregate principal amount of $707,256.03. The Bonds shall be dated November 1, 1981, shall be in the denomination of $5,000 each, except for Bond No. 1 which shall be in the denomination of $2,256.03, shall be numbered from 1 to 142 inclusive, shall mature November 1, 1993, and shall bear interest payable November 1, 1982 and annually thereafter on November 1 of each year at the following rates: Bond Nos. 1 to 120 121 to 142 Amounts Rate of Interest $597,256.03 14.625% 110,000.00 14.750% The Bonds shall be payable in lawful money of the United States of America at the office of the City Treasurer in Port Angeles, Washington, solely out of the special fund of the City known as the "Local Improvement District No. 203 Fund" created by Ordinance No. 2049 of the City. The Bonds shall be redeemed at par in advance of their scheduled maturity, in numerical order, on any interest payment date whenever there shall be sufficient money in the Local Improve- ment District No. 203 Fund to pay the same and all bonds of Local Improvement District No. 203 which are prior in number to the last bonds to be redeemed, over and above an amount sufficient for the payment of the interest next accruing on all the unpaid bonds of Local Improvement District No. 203. Notice of such intended redemption shall be given by mail to the original purchasers or the account manager thereof'(or to their successor in business) at their main offices, respectively, -2- in Seattle, Washington, and by one publication thereof in the City official newspaper not more than twenty (20) nor less than ten (10) days prior to such redemption date. Section 2. There has heretofore been created a Local Improve- ment District No. 203 Fund and the City has levied assessments payable into said Fund in the total amount of $824,831.43, of which $117,575.40 were prepaid prior to the adoption of this ordinance and not less than $707,256.03 remain payable into said Fund in ten equal annual installments together with interest and penalties thereon in accordance with Ordinance No. 2157 of the City, as amended by Ordinance No. 2170. Both principal of and interest on the Bonds are payable solely out of the Local Improvement District No. 203 Fund and from the Local Improvement Guaranty Fund of the City. Section 3. The Bonds shall be in substantially the following form: NO. UNITED STATES OF AMERICA STATE OF WASHINGTON CITY OF PORT ANGELES LOCAL IMPROVEMENT DISTRICT NO. 203 Laws of Washington 1965, Chapter 7, §35.45.070 provides, in part, as follows: "Neither the holder nor owner of any bond, interest coupon, or warrant issued against a local improvement fund shall have any claim therefor against the city or town by which it is issued, except for payment from the special assessments made for the improvement for which the bond or warrant was issued and except also for payment from the local improvement guaranty fund of the city or town as to bonds issued after the creation of a local improvement guaranty fund of the city or town. The city or town shall not be liable to the holder or owner of any bond, interest coupon, or warrant for any loss to the local improvement guaranty fund occurring in the lawful operation thereof." 1 The City of Port Angeles, a municipal corporation of the State of Washington, hereby promises to pay to bearer on the first day of November, 1993, the principal amount of DOLLARS in lawful money of the United States of America, together with interest thereon from the date hereof until payment of the principal sum has been made or duly provided for at the rate of % per annum payable November 1, 1982 and annually thereafter on November 1 of each year, upon presen- tation and surrender of the annexed interest coupons as they severally become due or until such principal amount shall have been paid or duly provided for. Both principal of and interest on the bonds are payable in lawful money of the United States of America at the office of the City Treasurer in Port Angeles, Washington, solely out of the Local Improvement District No. 203 Fund created by Ordinance No. 2049 of the City, and from the local improvement guaranty fund of the City. Neither the holder nor the owner of this bond shall have any claim therefor against the City of Port Angeles except for payment from the special assessments made for the improvement for which this bond was issued, and except as against the local improvement guaranty fund of the City; and the City shall not be liable to any holder or owner of this bond for any loss to the guaranty fund occurring in the lawful operation thereof by the City. The remedy of the holder or owner of a bond in case of nonpayment shall be confined to the en- forcement of the assessments and to the guaranty fund. This bond is one of an issue aggregating in all the principal sum of $707,256.03, issued to pay part of the cost for certain street improvements within Local Improvement District No. 203 created by Ordinance No. 2049. The bonds of this issue are subject to redemption at par in advance of their scheduled maturity, in numerical order, on any interest payment date whenever there shall be sufficient money in the Local Improvement District No. 203 Fund to pay the same and all bonds of Local Improvement District No. 203 which are prior in number to the last bond to be redeemed, over and above an amount sufficient for the payment of the interest next accruing on the unpaid bonds of Local Improvement District No. 203. In case this bond is called for payment before its final maturity, each and every interest coupon not accrued at the time of such payment shall be void. Call for payment of this bond shall be made by the City Treasurer by mailing notice of such call to Grande & Co., Inc. and Campbell, Waterman Inc., or their successors in business, at their main offices in Seattle, Washington and by one publication of such call in the City official newspaper not more than twenty (20) nor less than ten (10) days prior to said call date, and when such call is made this bond shall be paid on the date the next interest coupon thereof shall become due after such call. It is hereby certified and declared that this bond and the bonds of this issue are issued pursuant to and in compli- ance with the Constitution and laws of the State of Washington and ordinances of the City, and that all acts, conditions and things required to be done precedent to and in the issuance of this bond have happened, been done, and performed. -4- IN WITNESS WHEREOF, the City of Port Angeles, Washington has caused this bond to be signed on behalf of the City with the facsimile or manual signature of its Mayor, to be attested by the facsimile or manual signature of its Clerk (one of which shall be manual), the official seal of the City to be impressed or imprinted hereon, and the interest coupons attached hereto to be signed with the facsimile signatures of said officials this 1st day of November, 1981. CITY OF PORT ANGELES, WASHINGTON By Mayor ATTEST: City Clerk The interest coupons to be attached to said bonds shall be in substantially the following form: NO. $ On the 1st day of , 19 , the City of Port Angeles, Washington, will pay to the bearer at the office of the City Treasurer the sum shown herein in lawful money of the United States of America out of the Local Improvement District No. 203 Fund of the City, said sum being the interest due that date on bond numbered of Local Improvement District No. 203 of the City. This coupon is subject to all the terms and conditions contained in the bond to which it is attached. CITY OF PORT ANGELES, WASHINGTON By (facsimile signature) • Mayor ATTEST: (facsimile signature) City Clerk Section 4. The Bonds shall be signed on behalf of the City by the facsimile or manual signature of the Mayor and the facsimile or manual signature of the City Clerk (one of which shall be manual)_ and shall have the official corporate seal of the City impressed or imprinted thereon. The interest coupons attached thereto shall be signed with the facsimile signatures of said officials. -5- • Section S. The sale of these Bonds to Grande & Co., Inc./ Campbell, Waterman Inc. at the price and pursuant to the terms and conditions set forth in their offer dated the 20th day of October, 1981, is hereby ratified and confirmed. Upon the sale of said Bonds the appropriate City officials are hereby authorized to do everything necessary for the prompt printing, issuance and delivery of the Bonds and the proper application of the proceeds thereof. Section 6. This Ordinance shall become effective five days from and after its passage, approval and publication as required by law. PASSED by the Council of the City of Port Angeles, Washington, at a regular meeting thereof and approved by its Mayor on this 20th day of October, 1981. CITY OF PORT ANGELES, WASHINGTON By 1p,j�1 L Mayar� PA0 ram ATTEST: City Clerk Pua,, s /1 : oe gx, .24/M • • GRANDE IR CO., INC. INVESTMENT SECLIRITIES HOGE BUILDING SEATTLE. WASHINGTON 98104 12067 e22 -8830 October 20, 1981 Honorable City Council City Hall 140 W. Front Street Port Angeles, WA 98362 Attention: Robert E. Orton, Director of Finance Gentlemen: You agree to sell to us and we agree to buy from you $707,256.03 City of Port Angeles, Washington Local Improvement District #203 Bonds dated November 1, 1981 and due November 1, 1993. The bonds are to be in $5,000 denominations except bond 1t1 in the denomination of $2,256.03. We will pay par for bonds delivered at Seattle, Washington and accrued interest from the date of the bonds to the date of delivery. The bonds are to bear an interest rate of 14 5/8% per annum on bonds numbered 1 through 120 inclusive and 14 3/4% on bonds numbered 121 through 142 inclusive. The net effective interest rate based on our estimate of call is 14.6621%. The bonds are subject to the unqualified approving legal opinion of Preston, Thorgrimson, Ellis & Holman, Attorneys of Seattle, Washington as to their legality and to all proceedings leading to their issuance. ACCEPTED for and on behalf of the City of Port Angeles, Washington this twentieth day of October, 1981. LJL Mayor f (2e'7le Respectfully submitted, Grande & Co., Inc. Campbell, Waterman, Inc. Robert G. Bleck, President Grande & Co., Inc. MEMO: October 20, 1981 TO: David Flodstrom, Mayor Haguewood, a . Council Members FROM: Rob Orton, Director of Finance and A. +, -istrative Services RE: Offer to Purchase L.I.D. No. 203 Bonds Ask The firms of Grande and Company, and Campbell Waterman and Company of Seattle have submitted a consolidated proposal to purchase the L.I.D. No. 203 bonds as follows: s Bond Numbers Amounts Rate of Interest 1 -120 $ 597,256.03 14.625% 121 -142 110,000.00 14.75% This proposal carries two coupon rates for the bonds as opposed to a single rate to which we are normally accustomed. Through the use of a multiple rate, the underwriters hope to improve saleability of the bonds in the secondary market. L.I.D. bonds do not have a fixed maturity schedule. That is, they may be redeemed at any time there is sufficient money in the L.I.D. Bond Fund to redeem a portion of the issue. For this reason, it is difficult to calculate the average or net interest cost under the proposal. However, using a maturity schedule of from five to seven years (this is to say that the life of the bond issue would be five cr seven years), the net interest cost would be in the range of 14.64% to 14.67 %. As security against defaulting on any portion of the issue, the City customarily fixes the assessment rate at one half point above the bond interest. In this instance, I suggest that the assessment rate be fixed at 15%. I am extremely pleased with the proposal submitted by these two firms. Virtually all of the L.I.D. bond sales in other cities during recent weeks have been in excess of 15% interest cost. I recommend acceptance of the Grande /Campbell Waterman proposal as specified above, and suggest that the Council fix the assessment rate at 15% even. Mr. Robert Bleck, President of Grande. and Company will be in the audience this evening should any of the Council members have questions about this proposal. Thank you. REO /dp