1278_00001ORDINANCE No•1278
AN ORDINANCE of the City of Moses Lake,Washington,
authorizing the issuance and sale of Local Improvement
District No.53 bonds in the principal amount of
$241,283.08;providing the terms and form thereof;
providing certain covenants relating to the payment
thereof;and approving the sale thereof.
WHEREAS,by Ordinance No.1198,passed by the City Council of the City ofiMosesLake,Washington,(the "City")on February 11,1986,Local Improvement
District No.53 ("LID No.53")was formed,the improvement of property
abutting and adjacent to Melva Lane,Eastlake Drive,James Avenue and
Kittelson Road by grading,graveling and constructing curbs with gutters,sidewalk and/or bicycle paths,water services,sewer side laterals,asphalt
concrete paving,signs,and storm drainage and such other work as may be
necessary in connection therewith (the "Improvements")was ordered,the City
of Moses Lake Local Improvement Fund,District No.53 was created,provision
for payment of the costs of the Improvements by special assessment against the
property specially benefited was made,and the issuance of local improvement
district bonds was authorized;and
WHEREAS,the aforesaid improvements have been completed and,pursuant toOrdinanceNo.1253,the final assessment roll for LID No.53 in the amount of
$241,283.08 was confirmed and,after due notice that the roll was in the hands
of the City Treasurer for collection,no assessments were prepaid;and
WHEREAS,in order to provide permanent financing for the aforesaid
improvements and to repay warrants issued for interim financing therefor it is
necessary to issue and sell Local Improvement District No.53 bonds in the
aggregate principal amount of $241,283.08;and
WHEREAS,Seattle-Northwest Securities Corporation has submitted an offer
to purchase said bonds on the terms and conditions hereinafter set forth,NOW,
i THEREFORE,
THE CITY COUNCILOF THE CITY OF MOSESLARE,WASHINGTON,DO ORDAIN AS
FOLLONS:
Section 1.Authorisation of the Bonds.For the purpose of paying part of
the cost and expense of the Improvements,the City shall issue and sell its
Local Improvement District No.53 Bonds in the principal amount of $241,283.08(the "Bonds").The Bonds shall be dated June 1,1987,shall be numbered 1-48,
inclusive,shall be in denominations of $5,000 each,except one Bond No.I
which shall be in the denomination of $6,283.08,shall he in fully registered
form and shall mature on June 1,1999.The Bonds shall bear interest from the
date thereof payable June 1,1988,and annually thereafter on each June 1 at
the following rates:
Bond Nos.Amount Interest Rate
1-5 $26,283.00 6.25%
6-10 25,000.00 6.50
11-15 25,000.00 6.7516-20 25,000.00 7.00
21-25 25,000.00 7.20
26-30 25,000.00 7.40
31-35 25,000.00 7.60
36-40 25,000.00 7.80
41-44 20,000.00 7.9045-48 20,000.00 8.00
The fiscal agencies of the State of Washington in the cities of Seattle,Washington,and New York,New York,shall act as registrar for the Bonds
(collectively,the "Bond Registrar").
Both principal of and interest on the Bonds shall be payable in lawful
money of the United States of America.Interest on the Bonds shall be paid by
CITY OF MOSESLAKE--LOCAL IMPROVEMENTDISTRICT NO.53 BONDS,1987--Page 1
check or draft mailed to the registered owners or their nominees at the
addresses appearing on the bond register as of the 15th day of the monthprecedingtheinterestpaymentdate.Principal of the bonds shall be payable
upon presentation and surrender of the Bonds by the registered owners or theirnomineesattheprincipalofficesofeitherofthefiscalagenciesofthe
state of Washington in the cities of seattle,Washington or New York,New
York,at the option of such owners or nominees.
Upon surrender thereof to the Bond Registrar,the Bonds areinterchangeableforotherBondsofthesamedenomination,number,interestirateandmaturity.Bonds may be transferred only if endorsed in the mannerprovidedthereonandsurrenderedtotheBondRegistrar.The City or the Bond
Registrar may make a charge sufficient to reimburse it for any tax or othergovernmentalchargerequiredtobepaidwithrespecttosuchexchangeortransfer.
Section 2.Redemption of Bonds.The City has reserved the right toredeemtheBondsonanyinterestpaymentdatepriortotheirmaturitydate innumericalorderatapriceofpar,plus accrued interest to the date of
redemption,and so much of such Bonds shall be redeemed as there shall be
money in the L.I.D.Fund (hereinafter defined)from payments of principal,interest and penalties on assessments levied in Local Improvement District No.
53 over and above the amount required for payment of the interest on allunpaidBondsonsuchdate.
Interest on any Bonds called for redemption shall cease on the redemption
date unless the same shall not be redeemed upon presentation made pursuant tosuchcall.
Notice of any such intended redemption shall be given not less than thirty
nor more than sixty days prior to the date fixed for redemption by first class
mail,postage prepaid,to the registered owner of any Bond to be redeemed attheaddressappearingonthebondregister.The requirements of this Section
shall be deemed to be complied with when notice is mailed as herein provided,
i regardless of whether or not it is actually received by the owner of any Bond.
Section 3.Local Improvement Fund,District No.53.There has heretofore
-been created a "Local Improvement Fund,District No.53"(the "L.I.D.Fund")
pursuant to Ordinance No.1198 of the City.The City has levied assessments
in the total amount of $241,283.08,of which none were prepaid into such Fund
prior to passage of this ordinance.$241,283.08 remains payable into said
Fund in ten (10)equal annual installments (commencingApril 1,1988,)
together with interest and penalties thereon in accordance with Ordinance No.1253 of the City.Both principal of and interest on the Bonds are payable
solely out of the L.I.D.Fund and the City Local Improvement Guaranty FundheretoforecreatedbytheCity.
Section 4.Tax Code Covenant and Findings.The City covenants that it
will take such action or refrain from such action as may be necessary tocomplywiththeUnitedStatesInternalRevenueCodeof1986(the "Code"),andapplicableregulationspromulgatedthereundertoassurethattheinterestontheBondswillnotbecometaxableunderSections103,141,148 and 149 of theCode,including but not limited to determination and payment of any rebate totheUnitedStatesTreasuryinthemannerandatthetimesspecifiedintheCode.
The City Council hereby finds and determines that the City does not expecttoissuemorethan$5,000,000 aggregate principal amount of obligations which
are tax exempt under the Code including but not limited to general obligation
i bonds and notes,revenue bonds and notes,lease-purchase or installmentpurchasecontractsandregisteredwarrantsincalendaryear1987and that theCityhasnotcreatedanypubliccorporationsorauthoritiesunderRCH35.21.730 ett seg.
The City Council hereby finds and determines that the Bonds are,and areherebydesignatedtobe,qualified tax-exempt obligations pursuant to Section902oftheTaxReformActof1986relatingtofinancialinstitutions.
CITY OF MOSES LAKE--LOCAL IMPROVEMENT DISTRICT NO.53 BONDS,1987--Page 2
Section 5.Form of the Bonds.The Bonds shall be substantially in the
following form:
UNITED STATES OF AMERICA
NO.$
LOCAL
WnROOFMOSEDSLAKE W HIETON
Section 35.45.070 of the Revised Code of Washington provides,in part,as
follows:
Neither the holder nor owner of any bond ...issued against a local
improvement fund shall have any claim therefor against the city or townbywhichitisissued,except for payment from the special assessments
made for the improvement for which the bond ...was issued and exceptalsoforpaymentfromthelocalimprovementguarantyfundofthecity ortown....The city or town shall not be liable to the holder or owner of
any bond ...for any loss to the local improvement guaranty fund
occurring in the lawful operation thereof.
INTEREST RATE:MATURITYDATE:CUSIP NO.:
SEE REVERSE SIDE FOR
CERTAIN DEFINITIONS
Registered Owner:
Principal Amount:DOLLARS
The City of Moses Lake,Washington,(the "City")for value received,
8 promises to pay to the Registered Owner identified above,or registered
nominees,on the Maturity Date specified above,the Principal Amount indicated
above and to pay interest thereon from the date of this bond or the most
recent date to which interest has been paid or duly provided for at the
Interest Rate set forth above,payable June 1,1988,and annually thereafter
on the first day of each June until this bond with interest is paid in full,
or funds are available in the City of Moses Lake Local Improvement Fund,
District No.53 (the "L.I.D.Fund")for payment in full.Both principal of
and interest on this bond are payable in lawful money of the United States of
America.Principal shall be payable upon presentation and surrender of this
certificate by the Registered Owner or nominee of such owner at the office of
either of the fiscal agencies of the State of Washington in the cities of
Seattle,Washington,and New York,New York,(the "Bond Registrar").Interest
is payable by check or draft mailed to the Registered Owner hereof or nominee
of such owner at the address appearing on the registry books of the Bond
Registrar on the 15th day of the month preceding the interest payment date.
Reference is hereby made to additional provisions of this bond set forth
on the reverse side and such additional provisions shall for all purposes have
the same effect as if set forth in this space.
This bond shall not become valid or obligatory for any purpose or be
entitled to any security or benefit under Ordinance No.of the City(the "Bond Ordinance")until the certificate of authentication set forth
hereon has been signed by the Bond Registrar.8 It is hereby certified and declared that the bonds are issued pursuant toandinstrictcompliancewiththeConstitutionandlawsoftheStateofWashingtonandordinancesoftheCityandthatallacts,conditions and things
required to be done,to happen or to be performed precedent to and in the
issuance of this bond have been done,have happened and have been performed.
IN WITNESS WHEREOF,the City has caused this bond to be signed by themanualorfacsimilesignatureofitsMayorandattestedbythemanualor
CITY OF MOSESLAKE--LOCAL IMPROVEMENTDISTRICT NO.53 BONDS,1987--Page 3
facsimile signature of its City Clark and its corporate seal to be impressed
or a facsimile thereof to be imprinted hereon this 1st day of June,1987.
CITY OF MOSES LAKE,WASRINGTON
i Attest:By (facsimile signature)
Mayor
(facsimile signature)
City Clerk
Date of Authentication:
CERTIFICATE OF AUTHENTICATION
This bond is one of the bonds described in the within mentioned Bond
Ordinance and is one of the Local Improvement District No.53 Bonds of
the City of Moses Lake,Washington dated June 1,1987.
WASHINGTONSTATE FISCAL AGENCY
By (manual signature)
Authorized Officer
ADDITIONAL PROVISIONS
This bond is one of an issue of like date,maturity,tenor,and effect,
except as to number,denomination and interest rate,in the aggregate
principal amount of $241,283.08.
The City has reserved the right to redeem the bonds of this issue on any
interest payment date prior to their maturity date in numerical order at a
price of par,plus accrued interest to the date of redemption,but only so
much of such bonds shall be redeemed as there shall be money in the L.I.D.
Fund from payments of principal,interest and penalties on assessments levied
in Local Improvement District No.53 over and above the amount required for
payment of the interest on all unpaid bonds on such date.
Interest on any bonds called for redemption shall cease on the redemption
date unless the same shall not be redeemed upon presentation made pursuant tosuchcall.
Notice of any such intended redemption shall be given not less than thirty
nor more than sixty days prior to the date fixed for redemption by first class
mail,postage prepaid,to the registered owner of any bond to be redeemed at
the address appearing on the bond register.The requirements of the Bond
Ordinance shall be deemed to be complied with when notice is mailed as herein
provided,regardless of whether or not it is actually received by the owner ofianybond.In addition,such redemption notice shall be mailed within the sametimeperiod,postage prepaid,to Standard &Poor's Corporation and to Moody's
Investors Service,Inc.at their offices in New York,New York,or to their
successors,if any,at the main place of business of such firms,but such
mailings shall not be a condition precedent to the call of any Bonds for
redemption.
Both principal of and interest on the bonds are payable solely out of the
L.I.D.Fund created by Ordinance No.1198 of the City from assessments levied
and collected in Local Improvement District No.53 and out of the Local
Improvement District Guaranty Fund heretofore created by the City.
CITY OF MOSESLAKE--LOCAL IMPROVEMENTDISTRICT NO.53 BONDS,1987--Page 4
This bond is transferable only on the records maintained by the BondRegistrarforthatpurposeuponthesurrenderofthisbondbytheregistered
owner hereof or his duly authorized agent and only if endorsed in the mannerprovidedhereon,and thereupon a new fully registered bond of like number,principal amount and interest rate shall be issued to the transferee inexchangetherefor.The City may deem the person in whose name this bond isregisteredtobetheabsoluteownerhereofforthepurposeofreceiving
payment of the principal of and interest on this bond and for any and all
purposes whatsoever.
8 The Bond Registrar is not required to issue,register,transfer orexchangeanyofthebondsduringaperiodbeginningattheopeningofbusiness
on the twentieth (20th)day next preceding any interest payment date andendingatthecloseofbusinessonsuchinterestpaymentdate,or,in the caseofanyproposedredemptionofthebonds,after the mailing of notice of thecallofsuchbondsforredemption.
The following abbreviations,when used in the inscription on the faceofthewithinbond,shall be construed as though they were written out infullaccordingtoapplicablelawsorregulations.
TEN COM -as tenants in commonTENENT-as tenants by the entireties
JT TEN ~as joint tenants with right of survivorship
and not as tenants in common
UNIF GIFT MIN ACT -Custodian
(Cust)(Minor)
under Uniform Gifts to Minors
i Act
(State)
Additional abbreviations may also be used though not in list above.
ASSIGNMENT
FOR VALUE RECEIVED,the undersigned hereby sells,assigns and transfersunto
PLEASE INSERT SOCIAL SECURITY OR TAKPAYER IDENTIFICATIONNUMBEROFTRANSFEREE//
(Please print or typewrite name and address,including zip code of Transferee)
the within bond and does hereby irrevocably constitute and appoint
or its successor,as Boud Registrar to transfer said bond on the books keptforregistrationthereofwithfullpowerofsubstitutioninthepremises.
DATED:
8 NOTE:The signature on this AssignmentSIGNATUREGUARANTEED:must correspond with the name of theregisteredownerasitappearsupon thefaceofthewithinbondineveryparti-cular,without alteration or enlarge-
ment or any change whatever.
CITY OF MOSESLAKE--LOCAL IMPROVEMENT DISTRICT NO.53 BONDS,1987--Page 5
Section 6.Execution and Authentication of the Bonds.The Bonds shall be
signed on behalf of the City with the facsimile or manual signature of the
Mayor,shall be attested by the facsimile or manual signature of the City
Clerk and shall have the corporate seal of the City impressed or a facsimile
thereof imprinted thereon.
Only such Bonds as shall bear thereon a Certificate of Authentication in
the form hereinbefore recited,manually executed by the Bond Registrar,shall
be valid or obligatory for any purpose or entitled to the benefits of thisiordinance.Such Certificate of Authentication shall be conclusive evidence
that the Bonds so authenticated have been duly executed,authenticated and
delivered hereunder and are entitled to the benefits of this ordinance.
In case either of the officers who shall have executed the Bonds shall
cease to be such officer or officers of the City before the Bonds so signed
shall have been authenticated or delivered by the Bond Registrar,or issued by
the City,such Bonds may nevertheless be authenticated,delivered and issued
and,upon such authentication,delivery and issuance,shall be as binding upon
the City as though those who signed the same had continued to be such officers
of the City.Any bond may also be signed and attested on behalf of the City
by such persons as at the actual date of execution of such Bond shall be the
proper officers of the City although at the original date of such Bond anysuchpersonshallnothavebeensuchofficeroftheCity.
Section 7.Lost or Stolen Bonds.In case any of the Bonds shall be lost,
stolen or destroyed,the Bond Registrar may authenticate and deliver a newbondorbondsoflikeamount,date,tenor,and effect to the registered owner
or nominee thereof upon payment to the City for the expenses and charges in
connection therewith and upon his filing with the Bond Registrar evidence
satisfactory to said Bond Registrar that such Bond or Bonds were actually
lost,stolen or destroyed and of his ownership thereof,and upon furnishing
the City with indemnity satisfactory to them both.
8 Section 8.Bond Registrar.The Bond Registrar shall keep,or cause to be
kept,sufficient books for the registration and transfer of the Bonds.The
Bond Registrar is authorized,on behalf of the City to deliver a substitute
Bond or Bonds in authorized denominations for any Bonds transferred orexchangedinaccordancewiththeprovisionsofsuchBondsandthisordinance
and to carry out all of the Bond Registrar's powers and duties under this
ordinance.
Section 9.Sale and Delivery of the Bonds.The proposal of Seattle-
Northwest Securities Corporation,Seattle,Washington,dated June 23,1987,to
purchase the Bonds at a price of $96.50 per $100.00 of principal amount of the
Bonds and on the terms set forth in said proposal and this ordinance is hereby
accepted.
Section 10.Authorization to Officials and Agents.The proper officials
of the City are hereby authorized and directed to do all things necessary for
the prompt issuance,execution,authentication and delivery of the Bonds,and
for the proper use and application of the proceeds of the sale thereof.The
City Manager is authorized to approve and execute an official statement for
the Bonds.
Section 11.Ratification.All actions taken and things done on behalf of
the City in connection with the issuance of the Bonds consistent with this
ordinance but prior to its effective date are in all respects hereby ratified
and confirmed.
III '
CITY OF MOSESLARE--LOCAL IMPROVEMENT DISTRICT NO.53 BONDS,1987--Page 6
Section 12.Effective Data.This ordinance shall take effect and be inforcefive(5)days after its passage and publication as provided bylaw.
PASSED by the City Council and signed by its Mayor at a regular openpublicmeetingonJune2,1987.
ATTEST:
CITY CLERK
APPROVEDAS TO FORM:
CITY ATTORNËY
PUBLISHED:JUNE 29,1987
i
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CITY OF MOSESLAKE-LOCAL IMPROVEMENTDISTRICT NO.53 BONDS,1987--Page 7