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HomeMy WebLinkAbout2613ORDINANCE NO. 2613 AN ORDINANCE of the City Council of Port Angeles, Washington, authorizing the issuance and'sale of Local Improvement District No. 211 Bond Antici- pation Notes in the principal amount of $790,000 for the purpose of refunding the outstanding Bond Anticipation Notes issued in said Local Improvement District No. 211; providing the form, terms, conditions and covenants of said notes; providing for the sale thereof; and providing for the disposition of the proceeds of the sale. WHEREAS, the City Council of the City of Port Angeles, Washington (the "City "), by Ordinance No. 2522, passed on March 7 1989, created Local Improvement District No. 211 (the "District "), created a special fund of the City (the "LID Fund"), and provided for the issuance of obligations to pay the cost of improvements in the District and the expenses incidental thereto; and WHEREAS, Chapter 39.50 of the Revised Code of Washington authorizes the City to issue short -term obligations to provide short -term financing in anticipation of the sale of its local improvement district bonds; and WHEREAS, it is deemed necessary and desirable that the City, in order to repay the outstanding bond anticipation note heretofore issued to pay the costs of the improvements in the District, issue and sell short -term obligations in the form of local improvement district bond anticipation notes in the prin- cipal amount of $790,000 pending the issuance and sale of local improvement district bonds of the City; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PORT ANGELES, WASHINGTON, AS FOLLOWS: Section 1. Definitions. As used in this ordinance the following terms shall have the following meanings, unless a different meaning clearly appears from the context: (a) "Bonds" means the Local Improvement District No. 211 Bonds to be issued to pay and redeem the Notes or any refunding note or notes. (b) "City" means the City of Port Angeles, Washington, a municipal corporation duly organized and existing under and by virtue of the Constitution and laws of the State of Washington. (c) "Council" means the general legislative authority of the City as the same shall be duly and regularly constituted from time to time. (d) "District" means Local Improvement District No. 211 of the City. (e) "Improvements" means the improvements made and to be made within the District as described in Ordinance No. 2522. (f) "LID Fund" means the Local Improvement District No. 211 Fund created by Ordinance No. 2522 of the City. (g) "1989 Note" means the Local Improvement District No. 211 Bond Anticipation Note issued under date of December 28, 1989. -2- NMN347 90/09/10 (h) "Notes" means the Local Improvement District No. 211 Bond Anticipation Notes issued pursuant to and for the purposes provided in this ordinance. Section 2. Authorization of the Bonds. After completing construction of all Improvements, the City shall issue Bonds in such form and with such terms, conditions, covenants, dates, interest rates, maturities and other details as shall hereafter be determined by ordinance. The proceeds of the Bonds to be issued for the Improvements shall be paid into the LID Fund and shall be applied to the extent necessary, together with other available funds, to pay and redeem the Notes. Section 3. Authorization of the Notes. In anticipation of the issuance of the Bonds the City shall, for the purpose of repaying the 1989 Notes, issue short -term obligations in the principal. amount of $790,000, which amount is not estimated to be in excess of the costs and expenses of the Improvements to be paid from special assessments to be levied on properties within the District and incurred prior to the confirmation of the assessment roll of the District. Said short -term obligations shall be designated the "City of Port Angeles, Washington, Local Improvement District No. 211 Bond Anticipation Notes," shall be dated the date of their delivery and shall be in bearer form. The Notes shall be in the denomination of $5,000 or any integral multiple thereof, shall mature on June 1, 1991, and shall bear interest at the rate per annum specified in the offer -3- NMN347 90/09/10 to purchase such notes described in Section 9 hereof, calculated on the basis of a 360 -day year with twelve 30 -day months and payable upon maturity. The City shall be obligated to pay interest at the same rate on the Notes from and after the maturity date thereof until the Notes shall have been paid in full or funds shall have been duly provided in the LID Fund of the City heretofore created for such payment in full. Both the principal of and interest on the Notes shall be payable in lawful money of the United States of America at the office of the fiscal agent of the State of Washington in Seattle, Washington, and shall be obligations only of the LID Fund. Section 4. Redemption of the Notes. Both the principal of and interest on the Notes are payable solely from the proceeds of the sale of the Bonds or refunding bond anticipation notes to be issued by the City, or from assessments and interest thereon levied in the District to pay the costs and expenses of the Improvements. The City hereby covenants with the holder(s) of the Notes that it will issue the Bonds, refunding bond antici- pation notes, or a combination of the foregoing in an amount sufficient, with any prepayments of assessments, to pay when due the principal of and interest on the Notes and will thereupon redeem the Notes. The Notes are not a general obligation of the City and are not payable otherwise than as stated herein. -4- NMN347 90/09/10 Section 5. Right of Prior Redemption. The City does not reserve the right to call and redeem the Notes prior to their stated maturity. Section 6. Form of the Notes. The Notes shall be in sub- stantially the following form: UNITED STATES OF AMERICA NO. $ STATE OF WASHINGTON CITY OF PORT ANGELES LOCAL IMPROVEMENT DISTRICT NO. 211 BOND ANTICIPATION NOTE The City of Port Angeles, Washington (the "City"), a munici- pal corporation organized and existing under and by virtue of the laws of the State of Washington, hereby acknowledges itself indebted and for value received promises to pay to bearer, on the 1st day of June, 1991, the principal sum of DOLLARS together with interest thereon from the date hereof at a rate equal to % per annum, payable on maturity, or on the date of prepayment, or until such principal sum shall have been paid or payment duly provided for. Interest shall be calculated on the basis of a 360 -day year with twelve 30 -day months. Both principal of and interest on this note are payable solely from the proceeds of Local Improvement District No. 211 bonds or refunding bond anticipation notes to be issued by the City, or from assessments and interest thereon levied in Local Improvement District No. 211 to pay the total costs and expenses of the improvements therein, or from the Local Improvement Guar- anty Fund of the City. Payment shall be made to the holder hereof at the office of the fiscal agent of the State of Washington in Seattle, Washington, out of the Local Improvement District No. 211 Fund of the City created by Ordinance No. 2522 of the City. Reference is made to Ordinance No. of the City (the "Note Ordinance ") for definitions of other defined terms used herein. -5- NMN347 90/09/10 The City has not reserved the right to call and redeem the Notes of this issue prior to their scheduled maturity. The City has designated this note as a qualified tax - exempt obligation under Section 265(b) of the Internal Revenue Code of 1986. The City hereby covenants with the holder of this note that it will issue bonds of Local Improvement District No. 211 or refunding bond anticipation notes in an amount sufficient, with any prepayment of assessments, to pay the principal of and inter- est on this note when due and will thereupon redeem this note. This note is not a general obligation of the City and is not payable otherwise than as stated herein. It is hereby certified and declared that this note is issued pursuant to and in strict compliance with the Constitution and laws of the State of Washington and duly adopted ordinances of the City, and that all acts, conditions and things required to have happened, been done, and performed precedent to and in the issuance of this note have happened, been done, and performed. IN WITNESS WHEREOF, Port Angeles, Washington, has caused this note to be executed on behalf of the City by its Mayor, to be attested by the City Clerk and the official seal of the City to be impressed hereon this day of September, 1990. CITY OF PORT ANGELES, WASHINGTON By Mayor ATTEST: City Clerk (S E A L) Section 7. Execution of the Notes. The Notes shall be signed on behalf of the City by the facsimile or manual signature of the Mayor, shall be attested by the manual or facsimile signa- - 6 - NMN347 90/09/10 ture of the City Clerk, and shall have the official seal of the City impressed thereon. Section 8. Application of Proceeds of Sale of the Notes. The principal proceeds of the sale of the Notes shall be paid to the City and deposited into the LID Fund and applied to paying the principal of and interest on the 1989 Notes and costs of issuing the Notes. Section 9. Sale of the Notes. The sale of the Notes to Piper, Jaffray & Hopwood Incorporated of Seattle, Washington is hereby authorized and approved. The appropriate City officials are hereby authorized and directed to do everything necessary for the prompt issuance, execution and delivery of the Notes and for the proper application and use of the proceeds thereof. Section 10. Lost or Destroyed Notes. In case the Notes authorized by this resolution shall be lost, stolen or destroyed, the City may execute and the Finance Director of the City may deliver a new note of like amount, date, and tenor to the holder thereof upon the holder's paying the expenses and charges of the City in connection therewith, and upon his filing with the Finance Director of the City evidence satisfactory to said Finance Director that the note was actually lost, stolen or destroyed and of his ownership thereof, and upon furnishing the City with indemnity satisfactory to the Finance Director. Section 11. Notes Not Arbitrage Bonds; Not Private Activity Bonds; Special Designation. The City covenants and agrees that -7- NMN347 90/09/10 throughout the term of the Notes no part of the proceeds of the Notes or any other moneys or obligations held under this ordinance shall at any time be used for any purpose or invested in such a manner, nor shall the City take any other action, which would cause the Notes to be (i) "arbitrage bonds" under the Internal Revenue Code of 1986 (the "Code ") or (ii) "private activity bonds" under the Code. The City hereby designates the Notes as "qualified tax - exempt obligations" under Section 265(b) of the Code. The City does not expect to issue tax - exempt obligations in an aggregate principal amount in excess of $10 million during 1990. Section 12. Severability. If any one or more of the cove- nants or agreements provided in this ordinance to be performed on the part of the City shall be declared by any court of competent jurisdiction to be contrary to law, then such covenant or cove- nants, agreement or agreements, shall be null and void and shall be separable from the remaining covenants and agreements in this ordinance and shall in no way affect the validity of the other provisions of this ordinance or of the Notes. Section 13. Prior Acts. Any act taken pursuant to the authority of this ordinance but prior to its effective date is hereby ratified and confirmed. Section 14. Effective Date. This ordinance shall become effective five days from its passage and publication. PASSED by the City Council this 18th day of September, 1990. -8- NMN347 90/09/10 ATTEST: JJ City Clk CITY OF PORT ANGELES, WASHINGTON -9- NMN347 90/09/10 CERTIFICATE OF CLERK I DO HEREBY CERTIFY that I am the duly chosen, qualified and acting Clerk of the City Council (the "Council ") of Port Angeles, Washington (the "City "), and keeper of the records of the City; and I HEREBY CERTIFY: 1. That the attached ordinance is a true and correct copy of Ordinance No. 2613 of the City (the "Ordinance "), as finally passed at a regular meeting of the Council held on the 18th day of September, 1990, and duly recorded in my office. 2. That said meeting was duly convened and held in all respects in accordance with law, and to the extent required by law, due and proper notice of such meeting was given; that a quorum was present throughout the meeting and a legally sufficient number of members of the Council voted in the proper manner for the passage of the Ordinance; that all other requirements and proceedings incident to the proper passage of the Ordinance have been duly fulfilled, carried out and otherwise observed, and that I am authorized to execute this certificate. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City this 18th day of September, 1990. City Cle� (SEAL) Notice is hereby given that the City Council of Port Angeles adopted Ordinance No. 2613 on September 18, 1990, authorizing the issuance of $790,000 of bond anticipation notes to repay the note issued to pay for improvements in Local Improvements District No. 211. The ordinance provides the form, terms, and covenants of the Notes, authorizes the issuance of Bonds to repay the Notes, and approves the sale of the Notes to Piper, Jaffray & Hopwood of Seattle. Ordinance No. 2613 is available for review at City Hall, 321 East 5th, and will be mailed upon request to the City Clerk at 457- 0411.