1758_00001ORDINANCE NO.1758
AN ORDINANCE of the City council of MoseLake,Washington,providing for the is.uanedofalimitedtaxgeneralobligationbondoftheCityintheaggregateprincipalamountof$3,020,300 to finance the cost of acquiring,constructing and equipping a new fireprotectionservicesheadquarters,station andtrainingfacility;fixing the date,form,O terms,maturities and covenants of said bond;providing for limited tax levies to secure therepaymentofthebond;and providing for thesaleofthebondhereinauthorized.
WHEREAS,the City of Moses Lake,Washington (the "City")wasinneedofanewfireprotectionservicesheadquarters,station andtrainingfacilityinordertoprovideadequatefireprotectiontotheresidentsoftheCity(the "Projectn);and
WHEREAS,cities are authorized to issue general obligationbondswithoutavoteoftheirelectorssecuredbytaxeslevied bythecitywithinandasapartofthetaxlevypermittedtocitieswithoutavoteoftheelectors,subject to certain limitations astoindebtednessimposedbyRCW39.36.020;and
WHEREAS,the City received the commitment of United States ofAmericaactingbyandthroughitsDepartmentofAgriculture,topurchasethelimitedtaxgeneralobligationbondauthorizedhereinunderthetermsandconditionssetforthinthisordinance;and
WHEREAS,the City has arranged for the interim financing oftheProjectthroughaloanfromKeyBankofWashington,pending thecompletionoftheProject;and
0 WHEREAS,the Project is now completed and the conditions totheissuanceofthegeneralobligationbondhereinauthorizedhavebeenfulfilled;NOW,THEREFORE,
THE CITY COUNCIL OF THE CITY OF MOSES LAKE,WASHINGTON,DOORDAINasfollows:
Section 1.Definitions.As used in this ordinance thefollowingtermsshallhavethefollowingmeanings:
"Bond"means the $3,020,300 par value limited tax generalobligationbondofthecityissuedpursuanttoandforthepurposesprovidedinthisordinance.
"Bond Fund"means the "Limited Tax General Obligation BondRedemptionFund,1996"created by Section 8 of the InterimFinancingOrdinance.
"City"means the City of Moses Lake,a municipal corporationdulyorganizedandexistingasacodecityunderandbyvirtue ofthelawsoftheStateofWashington.
"Commitment"means the Letter of Conditions from theGovernmenttotheCity,dated May 24,1994,as the same shall havebeensupplementedandamendedthereafter.
O "Council"means the general legislative authority of the Cityasthesameshallbedulyandregularlyconstitutedfromtimetotime.
"Government"means the United States of America acting by andthroughitsDepartmentofAgriculture.
"Interim Financing Ordinance"means Ordinance No.1725 of thecity,passed on June 11,1996.
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"Note"means the interim financing obligation issued by theCitypursuanttotheInterimFinancingOrdinanceforthepurposeoffinancingtheProjectpendingitscompletionandtheissuanceoftheBond.
nNote Fund"means the Limited Tax General Obligation BondRedemptionFund,1996,established pursuant to Section 8 of theInterimFinancingordinanceandmaintainedforthepurposeofpayingandredeemingtheNoteand,upon repayment and redemption oftheNote,to be used solely for the purpose of paying the principalofandinterestontheBond.
"Project"means the fire protection services headquarters,station and training facility,authorized to be constructed andequippedinSection1oftheInterimFinancingOrdinance.
Section 2.Authorization of Bond.For the purpose ofprovidingpermanentfinancingfortheProject,the City shall nowissueandsellitslimitedtaxgeneralobligationbond(the nBond")in the aggregate principal amount of $3,020,300.
Section 3.Description of Bond.The Bond shall be designatednCityofMosesLake,Washington,Limited Tax General obligationBond,1997,"shall be dated as of the date of delivery thereof totheGovernment,as the initial purchaser,shall be numbered R-1,shall be in the denomination of $3,020,300,shall be fullyregisteredinthenameoftheGovernment,shall bear interest fromthedateofitsissuanceontheunpaidprincipalbalancethereofattherateof5.00%per annum,shall be amortized over a 30-yearperiodandshallberepaidinsemiannualinstallmentsofprincipalandinterestintheamountof$97,737.00,payable on the first dayofthesixthmonthfollowingthedateoftheBondandsemiannuallythereafter.The last installment will be due no later than themonthintheyear2027whichisonemonthlessthan30yearsfromthedateofissuanceoftheBond,and may be in an amount more orOlessthan$97,737.00,as required,to retire the entire indebted-ness with interest.
Payments shall be applied first to interest and then toprincipal,and interest shall accrue on the basis of a 365-dayyear.
Both principal of and interest on the Bond shall be payable inlawfulmoneyoftheUnitedStatesofAmericatotheownerorownersthereofattheaddressappearingontheregistrationbooksoftheCitymaintainedbytheCityFinanceDirectorandexofficioCityTreasurer;provided,however,that as long as the Government is theownerandholderoftheBond,the City shall make payments directlytothefinancialofficeoftheGovernmentservingtheCityofMosesLake,Washington,area as shall be designated by the Governmentfromtimetotime.
The Bond shall be registered as to both principal and interestaslongasanyoftheinstallmentsoftheBondremainunpaid,andthecityshallmaintainintheofficeoftheCityFinanceDirectorbooksfortheregistrationandtransferoftheBond.No transferoftheBondsoregisteredshallbevalidunlessmadeonsaidbooksuponthewrittenrequestoftheregisteredowneroritsdulyauthorizedagent.
Section 4.Prepayment.The City hereby reserves the right toOprepayprincipalinstallmentsremainingunpaidatthepriceofparplusaccruedinterest,in whole,or in part in chronological order,at any time.No advance notice of intended prepayment orredemptionshallberequired.
Section 5.Bond Fund.There has been created pursuant toSection8oftheInterimFinancingOrdinanceaspecialfundoftheCityknownasthe"Limited Tax General obligation Bond RedemptionFund,1996n (the "Bond Fund"),which Fund,upon payment and
USDABordordimme -Page 2
redemption of the Note simultaneously with the issuance of the
Bond,is to be drawn upon for the sole purpose of paying theprincipalofandinterestontheBond.The Bond shall be a generalobligationoftheCity,and the full faith and credit of the city
are hereby pledged for its repayment.
As long as the Bond remains outstanding,the City hereby
irrevocably obligates and binds itself to set aside and pay into
the Bond Fund,those amounts necessary,after taking into
consideration such other funds as are on hand in the Bond Fund and0availableforthepaymentofprincipalandinterestontheBond,to
pay the interest or principal and interest next coming due on the
Bond.Such payments shall be made from any legally available
source,and the city hereby covenants that it will levy taxeswithinandasapartofthetaxlevypermittedtocitieswithout a
vote of its electors and budget annually therefrom an amount
sufficient to make such payments.
Section 6.General Covenants.The City hereby covenants and
agrees with the owner of the Bond from time to time,as follows:
(a)Books and Records.The city will submit quarterly and
annual management reports to the Government as outlined in
Section 1942.17 of FmHA Instruction 1942-A.In addition,the City
will submit its annual budget to the Government for its review.
(b)Special Regulations.The City will maintain worker's
compensation insurance for its employees as required by law.In
addition,the City will comply with the Architectural Barriers Act
of 1968 and during the course of construction of the Project it hascompliedwiththeLeadBasedPaintsPoisoningandPreventionAct
and National Consumer Health Information and Health Promotion Act
of 1976 with reference to specifications for paints during the
course of construction.
O (c)Covenant Against Arbitrage.The City will not make any
use of the proceeds of the Bond,or any other moneys or obligations
held under this ordinance for any purpose,nor shall the City take
any other action,which would cause the Bond to be (i)annarbitragebond"within the meaning of Section 148 of the Internal
Revenue Code of 1986,as the same may be amended (the nCode"),or(ii)a "privateactivity bond"under Section 144 of the Code.TheCityfurthercovenantsthatitwillnotaccumulateandinvestatanyieldmateriallyhigher"than the "yield"on the Bond any amountsinansinkingfund,"as such terms may be defined in applicablestatutesorregulations,if such accumulation and investment would
cause the Bond to become an "arbitragebond"within the meaning ofsection148oftheInternalRevenueCode,as amended.
(d)Designation Under §265.The City hereby designates theBondasaqualifiedtax-exempt obligation under Section 265(b)oftheCode.The city does not anticipate issuing more than$10,000,000 of qualified tax-exempt obligations during 1997.
Section 7.Transfer.The Bond may be transferred by theregisteredownerthereof,provided that (i)such transfer relatestotheentireunpaidprincipalamountoftheBond,and (ii)suchtransferisundertakenincompliancewithallrequirementsofsecuritieslaws.Any such transfer shall be noted on the bondregistrationbooksoftheCity.
O Section 8.Lost or Destroyed Bonds.In case the Bond shallbelost,stolen or destroyed,the City may execute and deliver anewbondoflikedate,number and tenor to the registered ownerthereofinthemannerprovidedbylawandupontheowner's payingtheexpensesandchargesofthecityinconnectiontherewith.
Section 9.Form of Bond.The Bond shall be in substantiallythefollowingform:
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UNITED STATES OF AMERICA
NO.$3,020,300
STATE OF WASHINGTON
CITY OF MOSES LAKE
LIMITED TAX GENERAL OBLIGATION BOND,
1997
0 The City of Moses Lake,Washington (hereinafter called the
"City"),a municipal corporation of the State of Washington,
acknowledges itself indebted and for value received promises to
pay,to the United States Department of Agriculture,or its
successor (herein sometimes called the "Payee"),or its registered
assigns (herein sometimes called the "Alternate Payeen),the
principal sum of
THREE MILLION TWENTY THOUSAND THREE HUNDRED
AND NO/100 DOLLARS ($3,020,300)
in any coin or currency which is legally acceptable on therespectivedatesofpaymentsfordebtsduetheUnitedStatesof
America,and to pay interest,from the date hereof,on the balance
of said principal from time to time remaining unpaid in like coin
or currency at the rate of 5.00%per annum payable on the first day
of the sixth month following the date of the bond [September 1,
1997]and semiannually thereafter,until all of such pringipal
installments have been paid or such payment has been duly provided
for;provided that the final payment of principal of and interest
on this bond shall nevertheless be due on March 1,2027.
As long as the Payee is the registered owner of this bond,
payments of principal and interest shall be made by the city
Treasurer directly to the Payee at the office of the Payee serving
O the City of Moses Lake,Washington.As long as the Alternate Payee
is the registered owner of this bond,said payment shall be made at
the office of the City Treasurer.Upon final payment of theprincipalofandinterestonthisbond,it shall be submitted totheCityforcancellationandsurrender.
In addition to the installments of principal required to bepaidbytheCityashereinabovesetforth,the City,at its option,
shall have the right to prepay any or all unpaid principal
installments in the chronological order of such installments at anytime.No advance notice need be given of any prepayment hereunder.
This bond is issued pursuant to Ordinance No.1758 of the City
(the "Bond Ordinancen),for the purpose of providing permanentfinancingforafireprotectionservicesheadquarters,station andtrainingfacility.This bond is a general obligation of the City,
and the full faith and credit of the City is hereby pledged for its
repayment.The City hereby covenants that it will levy taxeswithinandasapartofthetaxlevypermittedtocitieswithout avoteofelectorsandannuallybudgetamountssufficienttopaytheprincipalofandinterestonthisbondasthesamebecomesdueandpayable.
Reference is made to the Bond Ordinance for a more completedescriptionofthecovenantswithandtherightsoftheownerofthisbond.
This bond may be assigned,and upon such assignment theassignorshallpromptlynotifytheCityTreasurerbyregisteredmail.
It is hereby certified and declared that this bond is issuedpursuanttoandinstrictcompliancewiththeconstitutionandlawsofthestateofWashingtonandordinancesoftheCity,and that all
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acts,conditions and things required to be done precedent to and in
the issuance of this bond have happened,been done and performed.
IN WITNESS WHEREOF,the City of Moses Lake,Washington,has
caused this bond to be signed on behalf of the City with the manual
or facsimile signature of its Mayor,to be attested by the manual
signature of its City Clerk,and the seal of the City to be
impressed hereon,as of this day of March,1997.
CITY OF MOSES LAKE,WASHINGTON
[SEAL]imanual signaturel
Mayor
ATTEST:
[manual signaturalCityClerk
REGISTRATION CERTIFICATE
This bond is registered in the name of the owner on the books
of the City in the office of the City Treasurer as to both
principal and interest as noted in the registration blank below.No
transfer hereof shall be valid unless made by the registered owner
or his/her duly authorized agent in writing,and similarly notedhereonandonthebondregistrationbooksofthecity.All
payments of principal of and interest on this bond shall be made by
the City with full acquittance by city Treasurer's check,or by
warrant of the City drawn on the Treasurer,made payable to theOlastregisteredholdershownhereonanddeliveredtosuchownerormailedtohim/her at his/her address noted hereon.
Date of Name and Address of Signature ofRegistrationRegisteredOwnerRegistrar
March 20,1997 United States
Department of Agriculture
Room 319,Federal Building
P.O.Box 2427
Wenatchee,WA 98807-2427
The Bond shall have endorsed thereon the following form ofassignment:
ASSIGNMENT
FOR VALUE RECEIVED,the undersigned registered owner thereofherebysells,assigns and transfers the within bond unto
DATED .
O In the presence of:
(Repeat this form of assignment)
USDABond Ordinance -Page 5
section 10.Execution of the Bond.The Bond shall be signed
on behalf of the City with the manual or facsimile signature of theMayor,shall be attested by the manual signature of its Clerk,and
shall have the corporate seal of the City impressed or imprinted
thereon.
Section 11.Sale of Bond.The Bond shall he sold to theGovernmentatapriceofparonthetermsandconditionssetforthherein.
O Section 12.Application of Bond Proceeds.The principalproceedsofthesaleoftheBondshallbepaidintotheNoteFund
and used,together with other available funds,to pay and redeemtheNoteonthedateofdeliveryoftheBond.
Section 13.Severability.If any one or more of thecovenantsoragreementsprovidedinthisordinancetobeperformed
on the part of the City shall be declared by any court of competentjurisdictiontobecontrarytolaw,then such covenant orcovenants,agreement or agreements,shall be null and void andshallbedeemedseparablefromtheremainingcovenantsandagreementsinthisordinanceandshallinnowayaffectthevalidityoftheotherprovisionsofthisordinanceoroftheBond.
Section 14.General Authorization.The Mayor and the ClerkandallotherappropriateofficersoftheCityareeachherebyauthorizedanddirectedtotakesuchsteps,to do such other actsandthings,and to execute such letters,certificates,agreements,
papers,financing statements,assignments or instruments as intheirjudgmentmaybenecessary,appropriate or desirable in ordertocarryoutthetermsandprovisionsof,and complete thetransactionscontemplatedby,this ordinance.
Section 15.Prior Acts.All acts taken pursuant to theauthorityofthisordinancebutpriortoitseffectivedateareherebyratifiedandconfirmed.
Section 16.Effective Date.This ordinance shall becomeeffectivefromandafteritspassageandpublicationasrequiredbylaw.
PASSED by the city Council of the City of Moses Lake this 11thdayofMarch,1997.
CITY OF MOSES LAKE,WASHINGTON
[SEAL]
City Attorney
PUBLISH:3 14/97
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