Ord 90-075
ORDINANCE NO. 90-75
AN
ORDINANCE of the City of Federal Way,
Washington, providing for the issuance and
sale of limited tax general obligation bonds
of the City in the principal sum of $1,710,000
for providing funds to finance the renovation
and equípping of a city hall and to purchase
land for City purposes; providing the date,
form, terms and maturities of said bonds;
providing for the disposition of the proceeds
of sale of such bonds; providing for the
annual levy of taxes to pay the principal of
and interest on said bonds; and providing for
the sale thereof.
WHEREAS,
the City Council
(the "Council")
of the city of
Federal Way, Washington (the "city"), deems it necessary and in the
best interest of the City and its citizens that a new city hall be
leased,
renovated and equipped and land be purchased for City
purposes; and
WHEREAS,
in order to provide the funds required for the
carrying out of such renovation and equipping of the city hall and
purchase of such land,
the city now desires to authorize the
issuance of limited tax levy general
obligation bonds
in the
principal amount of $1,710,000 and to authorize the sale of such
bonds by competitive sale;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
WASHINGTON, DO ORDAIN AS FOLLOWS:
SECTION 1.
Definitions.
As used in this ordinance, the
following words
shall
have
the
following
meanings,
unless
a
different meaning clearly appears from the context:
COpy
"Bond Fund" means the "City of Federal Way Limited Tax
General obligation Bond Redemption Fund, 1990" created by Section 6
of this ordinance.
"Bond Reaister" means the books or records maintained by
the Bond Registrar for the registration and transfer of the Bonds
containing the name and mailing address of the owner of each Bond
or nominee of such owner and such other information as the Bond
Registrar shall determine.
"Bond Reaistrar" means the fiscal agency of the State of
washington,
currently
Seattle-First
National
Bank,
Seattle,
Washington, and The Bank of New York, New York, New York, and any
fiscal agent of the State of Washington that may hereafter be
designated as successor to such banks, designated herein as Bond
Registrar to register and authenticate the Bonds, maintain the Bond
Register,
effect transfer of
ownership
of
the
Bonds
and pay
principal of and interest on the Bonds.
"Bonds" means the $1,710,000 principal amount of the City
of Federal way, Washington, Limited Tax General Obligation Bonds,
1990,
issued pursuant to and for the purposes provided in this
ordinance.
"ci tv" means the city of Federal way,
Washington,
a
municipal corporation duly organized and existing under and by
virtue of the Constitution and laws of the State of Washington.
"Capital proiects Fund" means the "City of Federal Way
Capital Projects Fund" created by Section 13 of this ordinance.
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"Council" means the legislative authority of the City as
the same shall be duly and regularly constituted from time to time.
SECTION 2.
Findinqs and Authorization of Improvements.
The
City Council hereby finds that the public interest, welfare and
benefit of the inhabitants of the City require that the City lease,
renovate and equip a new city hall at 33520 First Avenue South in
the City and to purchase approximately .8.3 acres of land at 31531
First Avenue South in the City.
The estimated cost of paying the
cost
of
renovating
and
equipping
the
city
hall
and
other
improvements and all costs incidental thereto, to the purchase of
land, and the issuance of the Bonds is hereby declared to be as
nearly
as practicable the
sum of
$1,710,000,
which
shall
be
provided from the proceeds of sale of the Bonds.
The city hereby autho-
SECTION 3.
Authorization of Bonds.
rizes the issuance and sale of the Bonds in the aggregate principal
amount of $1,710,000 to provide money to finance the cost of the
improvements and land acquisition described in section 2 hereof,
and all costs incidental thereto and to the issuance of the Bonds.
The Bonds shall be general obligations of the City; shall be desig- ,
nated
"City
of
Federal
Way,
Washington,
Limited
Tax
General
Obligation Bonds, 1990"; shall be dated November 1, 1990; shall be
issued in fully registered form in the denomination of $5,000 or
any integral multiple thereof, provided that no Bond shall repre-
sent more than one maturity; shall be numbered separately and in
such manner
and with
any
additional
designation as
the
Bond
Registrar
deems
necessary
for purposes
of
identification
and
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control; shall bear interest at the rates to be hereafter approved
by the Council from their date, until the Bonds have been paid or
their payment duly provided for,
payable on June 1,
1991,
and
semiannually thereafter on the first day of each December and June
and shall mature on December 1 of each year as follows:
Maturitv Year
Principal
Amount
1991
1992
'1993
1994
1995
$300,000
320,000
340,000
365,000
385,000
SECTION 4.
Reqistration. Payment and Transfer.
The City
hereby specifies and adopts the system of registration for the
Bonds approved by the State Finance Committee,
and the fiscal
agencies of the State of Washington in the cities of Seattle,
Washington, and New York, New York, shall act as authenticating
trustee, transfer agent, paying agent and registrar for the Bonds
(collectively, the "Bond Registrar").
The Bond Registrar shall
keep, or cause to be kept, at its principal corporate trust office,
sufficient records for the registration and transfer of the Bonds
which shall at all times be open'to inspection by the city.
The
Bond Registrar is authorized, on behalf of the City, to authenti-
cate and deliver Bonds transferred or exchanged in accordance with
,the provisions of such Bonds and this ordinance and to carry out
all of the Bond Registrar's powers and duties under this ordinance.
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The Bond Registrar shall be responsible for its representa-
tions contained in the certificate of Authentication on the Bonds.
The Bond Registrar may become the owner of any Bonds with the same
rights it would have if it were not the Bond Registrar, and to the
extent permitted by law, may act as depositary for and permit any
of its officers or directors to act as a member of, or in any other
capacity with respect to,
any committee formed to protect the
rights of Bondowners.
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 check or draft of the Bond Registrar mailed
(on the date such interest is due) to the registered owners or
nominees at the addresses appearing on the Bond Register on the
fifteenth day of the month preceding each interest payment date.
Principal of the Bonds shall be payable upon presentation and
surrender of the Bonds to the Bond Registrar by the registered
owners or nominees at the principal offices of the Bond Registrar
in the cities of seattle, Washington, or New York, New York.
The
Bonds may be transferred
only
on the
Bond Register
maintained by the Bond Registrar'for that purpose upon the sur-
render thereof by the registered owner or nominee or his/her duly
authorized agent and only if endorsed in the manner provided
thereon,
and
thereupon
a
new
fully
registered
Bond
of
like
principal amount, maturity and interest rate shall be issued to the
transferee in exchange therefor.
Upon surrender thereof to the
Bond Registrar, the Bonds are interchangeable for Bonds in any
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authorized denomination of an equal aggregate principal amount and
of the same interest rates and maturities.
Such transfer or
exchange shall be without cost to the registered owner or trans-
feree.
The City may deem the person in whose name each Bond is
registered to be the absolute owner thereof for the purpose of
receiving payment of the principal of and interest on such Bonds
and for any and all other purposes whatsoever.
SECTION 5.
Redemption.
The City does not reserve the right
to redeem the outstanding Bonds prior to their maturity.
SECTION 6.
creation of Bond Fund and provision for Tax Levv
Payments.
A special fund of the City known as the "City of Federal
Way Limited Tax General Obligation Bond Redemption Fund, 1990" (the
"Bond Fund"), is hereby authorized and directed to be created in
the office of the Finance Director of the City.
The Bond Fund
shall be drawn upon for the sole purpose of paying the principal
of and interest on the Bonds.
The City hereby irrevocably covenants and agrees for as long
as any of the Bonds are outstanding and unpaid, that each year it
will include in its budget and levy an ad valorem tax, within and
as a part of the tax millage levy permitted to cities without a
vote of the people, upon all the property within the city subject
to taxation in an amount which will be sufficient, together with
all other revenues and money of the City which may legally be used
and which the
city may apply
for such purposes,
to pay the
principal of and interest on the Bonds as the same shall become
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due.
All of such taxes and any of such other money so collected
shall be paid into the Bond Fund.
None of the money in the Bond
Fund shall be used for any other purpose than the payment of the
principal of and interest on the Bonds.
Money in the Bond Fund not
needed to pay the interest or principal next coming due may
temporarily be deposited in such institutions or invested in such
obligations as may be lawful for the investment of city money.
Any
interests or profit from the investment of such money shall be
deposited in the Bond Fund.
The city hereby irrevocably pledges that a sufficient portion
of each annual levy to be levied and collected by the city prior
to the full payment of the principal of and interest on the Bonds
will be and is hereby irrevocably set aside, pledged and appropri-
ated for the payment of the principal of and interest on the Bonds.
The
full
faith,
credit and resources
of the city are hereby
irrevocably pledged for the annual levy and collection of said
taxes and for the prompt payment of the principal of and interest
on the Bonds as the same shall become due.
SECTION 7.
Defeasance.
In the event that money and/or
"Government obligations,"
as
such Obligations
are now or may
hereafter be defined in Chapter 39.53 RCW, maturing at such time
or times and bearing interest to be earned thereon in amounts
sufficient to redeem and retire the Bonds or a portion of the Bonds
in accordance with their terms, are set aside in a special account
to effect such redemption or retirement and such money and the
principal of and interest on such obligations are irrevocably set
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aside and pledged for such purpose, then no further payments need
be made into the Bond Fund for the payment of the principal of and
interest on the Bonds so provided for and such Bonds shall cease
to be entitled to any lien, benefit or security of this ordinance
except the right to receive the funds so set aside and pledged, and
such Bonds shall be deemed not to be outstanding hereunder.
SECTION 8.
Arbitraqe Covenant.
The City hereby covenants
and agrees with the owners of the Bonds for as long as any of the
same remain outstanding that it will not make use of the proceeds
of sale of the Bonds or any other funds or obligations of the City
which may be deemed to be proceeds of the Bonds pursuant to Section
148 of the Internal Revenue Code of 1986,
as amended,
and the
applicable regulations thereunder which, if such use had reasonably
been expected on the date of delivery of the Bonds to the initial
purchaser thereof, would have caused the Bonds to be "arbitrage
bonds" within the meaning of said section and said regulations.
The City will comply with the requirements of section 148 of the
Internal Revenue Code of 1986, as amended, (or any successor provi-
sion thereof applicable to the Bonds) and the applicable regula-
tions thereunder throughout the term of the Bonds.
SECTION 9.
Bonds Are "Oualified Tax-Exempt Obliqations."
The city hereby designates the Bonds as "qualified tax-exempt
obligations" as defined in section 265(b) of the Internal Revenue
Code of 1986.
SECTION 10.
Lost or Destroved Bonds.
In case the Bonds or
any of them shall be lost, stolen or destroyed, the Bond Registrar
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may execute and deliver a new Bond or Bonds of like amount, date,
and tenor to the registered owner thereof upon the owner's paying
the expenses and charges of the City and the Bond Registrar in
connection therewith and upon his/her filing with the Finance
Director of the city and the Bond Registrar evidence satisfactory
to said Finance Director and Bond Registrar that such Bond or Bonds
were actually lost, stolen or destroyed and of his/her ownership
thereof,
and upon furnishing the city and Bond Registrar with
indemnity satisfactory to the Finance Director and Bond Registrar.
SECTION 11.
Form of the Bonds.
The Bonds shall be in sub-
stantially the following form:
UNITED STATES OF AMERICA
NO.
$
STATE OF WASHINGTON
CITY OF FEDERAL WAY
LIMITED TAX GENERAL OBLIGATION BOND, 1990
INTEREST RATE:
MATURITY DATE:
CUSIP NO:
SEE REVERSE 'SIDE FOR
ADDITIONAL PROVISIONS
REGISTERED OWNER:
PRINCIPAL AMOUNT:
DOLLARS
The City of Federal Way, Washington, a municipal corporation
organized and existing under and by virtue of the laws and Consti-
tution of the State of Washington (the "City"), hereby acknowledges
itself to owe and for value received promises to pay to the
Registered Owner identified above, or registered assigns, on the
Maturity Date identified above, the Principal Amount specified
above, unless redeemed prior thereto as provided herein, together
with interest on such Principal Amount from the date hereof or the
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most recent date to which interest has been paid or duly provided
for at the Interest Rate set forth above payable June 1, 1991, and
semiannually thereafter on each December 1 and June 1 until payment
of the principal sum has been made or duly provided for. Both
principal of and interest on this bond are payable in lawful money
of the United States of America. Interest on this bond is payable
by check or draft of the Bond Registrar mailed (on the date such
interest is due) to the Registered Owner hereof at the address
appearing on the records maintained by the Bond Registrar as of the
fifteenth day of the month preceding the interest payment date.
Principal shall be paid to the registered owner hereof upon
presentation and surrender of this bond at the principal offices
of the fiscal agency of the State of Washington in Seattle,
Washington or New York, New York (collectively, the "Bond
Registrar").
Reference is hereby made to additional provisions of this bond
set forth on the reverse side hereof and such additional provisions
shall for all purposes have the same ef£ect as if set forth in this
space. Reference also is made to the Bond Ordinance (hereinafter
defined) as more fully describing the covenants with and the rights
of registered owners of the bonds or registered assigns and the
meanings of capitalized terms appearing on this bond which are
defined in such ordinance.
This bond shall not be valid or become obligatory for any
purpose or be entitled to any security or benefit under the Bond
Ordinance (as hereinafter defined) until the Certificate of
Authentication hereon shall have been manually signed by the Bond
Registrar.
The city hereby irrevocably covenants and agrees with the
owner of this bond that it will include in its annual budget and
levy taxes annually, within and as a part of the tax levy permit-
ted to cities without a vote of the electorate, upon all the
property subject to taxation in amounts sufficient, together with
all other money legally available therefor, to pay the principal
of and interest on this bond as the same shall become due. The
full faith, credit and resources o£ the City are hereby irrevocably
pledged for the annual levy and collection of such taxes and the
prompt payment of such principal and interest.
It is hereby certified and declared that this bond is issued
pursuant to and in strict compliance with the Constitution and laws
of the State of Washington and ordinances of the City, that all
acts, conditions and things required to be done precedent to and
in the issuance of this bond and the bonds of this issue have
happened, been done and performed, and that this bond and the bonds
of this issue do not exceed any constitutional or statutory
limitations.
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IN WITNESS WHEREOF, the City of Federal Way, Washington, has
caused this bond to be signed on behalf of the City with the manual
or facsimile signature of the Mayor, to be attested by the manual
or facsimile signature of the Clerk of the city, and the seal of
the City to be reproduced or impressed hereon, as of this 1st day
of November 1, 1990.
CITY OF FEDERAL WAY,
WASHINGTON
By
Mayor
ATTEST:
Clerk of the City
The Certificate of Authentication for the Bonds shall be in
substantially the following form and shall appear on the front of
each Bond:
CERTIFICATE OF AUTHENTICATION
Date of Authentication:
This bond is one of the bonds described in the within-
referenced Ordinance No. of the city of Federal Way,
Washington, and is one of the Limited Tax General Obligation Bonds,
1990, dated November 1, 1990, of such city.
WASHINGTON STATE FISCAL AGENCY
As Bond Registrar
By
Authorized Officer
ADDITIONAL BOND PROVISIONS
This bond is one of an issue of limited tax general obliga-
tion bonds of the City of like date and tenor, except as to number,
interest rate and date of maturity, in the aggregate principal
amount of $1,710,000, issued pursuant to Ordinance No. ~ of
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the City, passed October 9,1990 (the "Bond Ordinance"), to provide
financing for the renovation and equipping of a city hall and
purchasing land.
The bonds of this issue are not subject to redemption prior
to their maturity.
The pledge of tax levies for payment of principal of and
interest on the bonds may be discharged prior to maturity of the
bonds by making provision for the payment thereof on the terms and
conditions set forth in the Bond Ordinance.
The Bonds have been designated as "qualified tax-exempt
obligations" for banks, thrift institutions and other financial
institutions.
The bonds of this issue are issued in fully registered form
in the denomination of $5,000 each or any integral multiple
thereof, provided that 1'10 bond shall represent more than one
maturity. Upon surrender to the Bond Registrar, bonds are inter-
changeable for bonds in any authorized denomination of an equal
aggregate principal amount and of the same interest rate and
maturi ty. This bond is transferable only on the records maintained
by the Bond Registrar for that purpose upon the surrender of this
bond by the registered owner hereof or his/her duly authorized
agent and only if endorsed in the manner provided hereon, and
thereupon a new fully registered bond of like principal amount,
maturity and interest rate shall be issued to the transferee in
exchange therefor. Such exchange or transfer shall be without cost
to the registered owner or transferee. The City may deem the
person in whose name this bond is registered to be the absolute
owner hereof for the purpose of receiving payment of the principal
of and interest on this bond and for any and all other purposes
whatsoever.
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto
PLEASE INSERT SOCIAL SECURITY OR TAXPAYER IDENTIFICATION NUMBER OF
TRANSFEREE
/ /
(Please print or typewrite name and address, including zip code of
Transferee)
the within bond and all rights thereunder and does hereby irrevoc-
ably constitute and appoint of
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, or its successor, as Agent to
transfer said bond on the books kept by the Bond Register for
registration thereof, wi th full power of substi tution in the
premises.
DATED:
, .
SIGNATURE GUARANTEED:
NOTE :-The-sigriãture-ofthi sÃs-Šl:gn=
ment must correspond with the name
of the registered owner as it
appears upon the face of the within
bond in every particular, wi thout
alteration or enlargement or any
change whatever.
SECTION 12.
Execution of the Bonds.
The Bonds shall be
signed on behalf of the City by the manual or facsimile signature
of the Mayor, shall be attested by the manual or facsimile signa-
ture of the city Clerk, and shall have a facsimile of the official
corporate seal of the city impressed or 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 this ordinance.
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 of the city who shall have
executed the Bonds shall cease to be such officer or officers of
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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 any such
person shall not have been such officer.
SECTION 13.
Creation of Capital Pro;ects Fund; Application
of Proceeds of Bonds.
A special fund of the City known as the
"City of Federal way Capital Projects Fund" is hereby authorized
and directed to be created in the office of the Finance Director
of the City.
The Capital Projects Fund shall be used to pay the
costs of the improvements described in section 2.
At the time of delivery of the Bonds, the proceeds of the
Bonds shall be deposited as follows:
(a)
The
accrued
interest,
if
any,
to
the
date
of
delivery shall be deposited to the Bond Fund and used to pay a
portion of interest on the Bonds on June 1, 1991.
(b)
The remaining proceeds shall be deposited into the
Capital Projects Fund and used to pay the costs of the improvements
described in section 2 hereof and all costs incidental thereto and
to the issuance of the Bonds.
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Money remaining in the Capital Projects Fund after all of such
costs have been paid or reimbursed may be used to pay costs of
other legally authorized expenditures of the city or shall be
deposited in the Bond Fund.
Money in the Capital Projects Fund may
be invested as permitted by law.
All interest earned and profits
derived from such investments shall be retained in and become a
part of the capital projects Fund.
SECTION 14.
Sale of the Bonds.
The Bonds shall be sold at
public sale at 11:00 o'clock a.m., Seattle time, on October 23,
1990.
The sale shall take place substantially in accordance with
the Notice of Bond Sale attached hereto as Exhibit A.
The Bonds
shall be sold at a price no less than 99% of the principal amount
plus accrued interest to the date of delivery and the bids shall
be for no less than all of the Bonds.
The Clerk of the City is
hereby directed to publish the Notice of Bond Sale substantially
in the form attached hereto as Exhibit A, or a short form of such
notice, prior to such sale once in the Dailv Journal of Commerce.
Sealed bids for the purchase of the Bonds shall be received by the
Clerk of the City in the Clerk's Office at City Hall in Federal
Way,
Washington,
until such time,
whereupon said bids will be
publicly opened and read.
Said bids will be considered and acted
upon by the Council at a regular meeting on such date.
Following
the sale of the Bonds, the city shall cause definitive Bonds to be
prepared, executed and delivered, which Bonds shall be lithographed
or printed with engraved or lithographed borders.
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SECTION 15.
Assessed Value and Existinq Bonded Debt.
The
value of the taxable property within the City as estimated by the
King
County
Assessor
is
$3,000,000,000.
The
total
amount
of
outstanding general obligation bonded indebtedness of the City,
whether voted or nonvoted, including the principal amount of the
Bonds will be $2,710,000.
SECTION 16.
Severabilitv.
If anyone 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 deemed separable from the remaining covenants and agreements of
this ordinance and shall in no way affect the validity of the other
provisions of this ordinance or of the Bonds.
SECTION 17.
Effective
Date.
This
ordinance
shall
be
effective five days after its passage and publication as required
by law.
PASSED by the City Council
of the City of Federal
Way,
Washington, this 9th day of october, 1990.
CITY OF FEDERAL WAY,
WASHINGTON
!lJ a/~~ flrd
Mayor
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APPROVED AS TO FORM:
ath¡~ /þ.úCQ
Spec al orney to the City
Preston Thorgrimson Shidler
Gates & Ellis
FILED WITH THE CITY CLERK: 10/9/90
PASSED BY THE CITY COUNCIL: 10/9/90
PUBLISHED: 10/12/90
EFFECTIVE DATE: 10/17/90
ORDINANCE NO.: 90-75
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EXHIBIT A
NOTICE OF BOND SALE
CITY OF FEDERAL WAY, WASHINGTON
LIMITED TAX GENERAL OBLIGATION BONDS, 1990
$1,710,000
NOTICE IS HEREBY GIVEN that sealed bids will be received by
the city council of Federal Way, at the office of the City Clerk,
Federal Way City Hall at 31132 - 28th Avenue South in Federal Way,
Washington, on
TUESDAY, OCTOBER 23, 1990
until 11:00 o'clock a.m., Seattle time, for the purchase of the
Federal
Way
Limited
Tax
General
Obligation
Bonds,
1990
(the
"Bonds") in the aggregate principal amount of $1,710,000, at which
time bids will be publicly opened, read and considered.
BOND DETAILS.
The Bonds will be dated November 1, 1990 and
will be in the denomination of $5,000 each or any integral multiple
thereof.
The Bonds will be fully registered as to both principal
and interest, and will be numbered in the manner and with such
additional designation as the Bond Registrar deems necessary for
purposes of identification.
The Bonds will bear interest from the
date thereof payable June 1, 1991, and semiannually thereafter on
each December 1 and June 1 and will mature on December 1 in the
years and amounts as follows:
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Year
Amount
1991
1992
1993
1994
1995
$300,000
320,000
340,000
365,000
385,000
BOND REGISTRAR AND PAYING AGENT.
The fiscal agency of the
State of Washington in Seattle, Washington and New York, New York
will act as bond registrar, transfer agent, and authenticating and
paying agent with respect to the Bonds (collectively, the "Bond
Registrar") .
PRIOR REDEMPTION.
The Bonds are not subject to redemption
prior to maturity.
SECURITY.
The City has covenanted that each year it will
include in its budget and levy an ad valorem tax upon all of the
property within the City subject to taxation, within and as a part
of the tax levy permitted to cities without a vote of the people,
in an amount that will be sufficient, together with other available
money, to pay the principal of and interest on the Bonds as the
same shall become due.
INTEREST RATES AND BIDDING DETAILS.
Each bid shall be on the
official bid form furnished by the City and enclösed in a sealed
envelope marked "Bid for Purchase of Federal Way Limited Tax
General Obligation Bonds, 1990."
The Bonds shall be purchased at no less than 99% of the
principal amount.
Each bid submitted shall provide for payment of
accrued interest to date of delivery and shall specify the rate of
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interest at which the bidder will purchase said Bonds.
No bid will
be accepted for the purchase of less than all of the Bonds.
To enable the city to comply with the requirements of the
Internal Revenue Code of 1986 with respect to the determination of
yield on the Bonds,
the winning bidder shall provide the re-
offering price for a substantial portion of the Bonds at or prior
to closing on the Bonds.
DEPOSIT.
Each bid shall be sealed and shall be accompanied
by a good faith deposit o~ $25,000 in cash or by a certified or
bank cashier's check made payable to the order of the Federal Way
Director of Finance,
which deposit shall be security
for the
performance of such bid and shall be held for liquidated damages
in case the successful bidder fails to take up and pay for the
Bonds
within
40
days,
if
tendered
for
delivery,
after
the
acceptance thereof.
Interest will not be allowed to the purchaser
on such good faith deposit.
The good faith deposit of cash or
checks of all bidders except that of the successful bidder will be
returned as soon as possible after the bids have been opened and
evaluated.
AWARD.
The Bonds will be awarded to the bidder offering to
purchase all of the same at the lowest true interest cost to the
City.
The true interest cost is defined as the annual rate which,
when
compounded
semiannually,
will
discount
the
debt
service
payments from the payment date to the date of the Bonds and to the
price bid,
without regard to interest accrued to the date of
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delivery.
The City may reject any or all bids submitted and may
waive any irregularities in any bid.
DELIVERY.
The Bonds will be delivered to the purchaser in
the city of Seattle, Washington, at the expense of the City, or
elsewhere as may be mutually agreed upon, at the option and expense
of the purchaser.
Settlement in full shall be made at the time of
delivery and shall be in federal funds available upon the date and
at the place of delivery.
The City will pay the cost of printing the Bonds and will
furnish without cost to the purchaser thereof the unqualified
approving opinion of Preston Thorgrimson Shidler Gates & Ellis
approving the legality of the issuance of the same.
The opinion
will be reproduced on each Bond.
OFFICIAL STATEMENT AND FURTHER INFORMATION.
The City agrees
to deliver or cause to be delivered within seven business days
after the Council accepts the winning bid for the Bonds, sufficient
copies of a final official statement.
The final official statement
shall be in substantially the form of the preliminary official
statement referred to below with the addition of the offering
prices,
interest rates, maturity; principal amounts and related
information.
Further information regarding these Bonds and copies of the
preliminary official statement may be obtained upon request made
to the Finance Director, 31132 - 28th Avenue South, Federal Way,
Washington 98003, (206) 941-1696.
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DATED at Federal way, Washington, this 9th day of October,
1990.
~ffl\ ~u
Diré9tor of Finance
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CERTIFICATE
I,
the
undersigned,
Clerk
of
the
city
of
Federal
Way,
Washington (herein called the "City") and keeper of the records of
the City Council of the City (herein called the "Council"), DO
HEREBY CERTIFY:
1.
That the attached ordinance is a true and correct copy
of Ordinance No. 90-75 of the city
(herein called the "Ordi-
nance"), as finally passed at a special meeting of the City Council
of the City held on the 9th of October, 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 of
the Council was present throughout the meeting and a legally
sufficient number of members of the City Council voted in the
proper manner for the passage of said Ordinance; that all other
requirements and proceedings incident to the proper adoption or
passage of said 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 Seal]
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