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HomeMy WebLinkAbout2253 Amending Ordinance 2235 - Revising Interest Rate and Payment of Limited Tax General Obligation Bond and Loan with Farmers Home AdministrationORDINANCE NO. ~2~3 AN ORDINANCE OF THE CITY COUNCIL OF PORT TOWNSEND, WASHINGTON AMENDING ORDINANCE NO. 2235 TO REVISE THE INTEREST RATE AND PAYMENTS FOR THE LIMITED TAX GENERAL OBLIGATIONS BOND OF THE CITY IN THE AMOUNT OF $250,000 AND APPROVING A LOAN RESOLUTION WITH THE FARMERS HOME ADMINISTRATION. Whereas, on April 16, 1991 the City Council of the City of Port Townsend passed Ordinance No. 2235 authorizing the issuance of a limited tax general obligation bond in the principal amount of $250,000 to finance the cost of constructing and equipping the balloon hangar at Fort Worden for use as a performing arts center; and Whereas, the interest rate on the bond has been lowered by the Farmers Home Administration and, therefore, it is necessary to amend Ordinance No. 2235 to reflect this change; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND, WASHINGTON DO ORDAIN AS FOLLOWS: Section 1. Section 2 of Ordinance No. 2235 is hereby amended to read as follows (deletions are stricken and additions are underlined): Section 2. Authorization of Bond. For the purpose of providing a portion of the financing for the cost of constructing and equipping the performing arts center, the City shall now issue and sell its limited tax general obligation bond (the "Bond") in the aggregate principal amount of $250,000. The Bond shall be designated "City of Port Townsend, Washington, Limited Tax General Obligation Bond, 1991," shall be dated as of the date of delivery thereof to the Government, as the initial purchaser, shall be numbered R-i, shall be in the denomination of $250,000, shall be fully registered, shall bear interest from the date of its issuance on the unpaid principal balance thereof at the rate of ~.~=~-o 5.875% per annum and shall be repaid in semiannual installments of principal and interest equal to ~"" ~°° $10,708 each, payable on the first day of the sixth month following the date of delivery of the Bond to the Government as the initial purchaser, and semiannually thereafter on the first day of each six-month period until all principal installments of the Bond have been paid or such payment has been duly provided for; provided, however, that the final payment of all principal of and interest on the Bond shall nevertheless be due on November 1, 2009. Payments shall be applied first to interest and then to principal. Both principal of and interest on the Bond shall be payable in lawful money of the United States of America to the owner or owners thereof at the address appearing on the registration books of the City maintained by the city Clerk- Treasurer; provided, however, that as long as the Government is the owner of the Bond, the City shall make payments directly to the financial office of the Government serving the City of Port Townsend, Washington, area. The Bond shall be registered as to both principal and interest as long as any of the installments of the Bond remain unpaid, and the City shall maintain in the office of the Clerk-Treasurer books for the registration and transfer of the Bond. No transfer of the Bond so registered shall be valid unless made on said books upon the written request of the registered owner or his duly authorized agent. Corresponding changes shall be made in the bond form delivered to the Farmers Home Administration. Section 2. The Council hereby approves the Loan Resolution that is attached to this ordinance and incorporated herein by this reference. The Mayor and City Clerk are hereby authorized to execute such Loan Resolution and deliver it to the Farmers Home Administration. Section 3. Ail other provisions of Ordinance No. 2235 are hereby ratified and affirmed. Section 4. This ordinance shall become effective five days from and after its passage and publication as required by law. Passed by the Council of the City of Port Townsend, Washington at a regular meeting thereof held this /~ ~ day of July, 1991. ATTEST: Clerk CITY OF PORT TOWNSEND, WASHINGTON K: \nmn\22566-89.001\21 [ .~3K --2-- USDA-FmHA Form FmHA 1942-47 (Rev. 1-90) A RESOLUTION OF THE OF THE City of Port City Position 5 LOAN RESOLUTION (Public Bodies) Council FOKM APPKOVED OMB NO. 0575-0015 Townsend AUTHORIZING ,au'ND PROVIDING FOR THE INCURRENCE OF INDEBTEDNESS FOR THE PURPOSE OF PROVIDING A PORTION OF THE COST OF ACQUIRING, CONSTRUCTING, ENLARGING, EMPROVING, AND/OR EXTENDING ITS balloon hanger at Fort Worden for use as a performing arts center FACILITY TO SERVE AN AREA LAWFULLY WITHIN ITS JURISDICTIO~ TO SERVE. WHEREAS, it is necessary for the City Council (Public Body) (herein after called Association) to raise a portion of the cost of such undertaking by issuance of its bonds in the principal amount of $250,000 pursuant to the provisions of RCW 39.46 ; and WHEREAS, the Association intends to obtain assistance from the Farmers Home Administration, United States Department of Agri- culture, (herein called the Government) acting under the provisions of the Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.) in the planning, financing, and supervision of such undertaking and the purchasing of bonds lawfully issued, in the event that no other acceptable purchaser for such bonds is found by the Association: NOW THEREFORE. in consideration of the premises the Association hereby resolves: 1. To have prepared on its behalf and to adopt an ordinance or resolution for the issuance of its bonds containin~ such items and in such forms as are required by State statutes and as are a~eeable and acceptable to the Government. 2. To refinance the unpaid balance, in whole or in part, of its bonds upon the request of the Government if at any time it shall appear to the Government that the Association is able to refinance its bonds by obtaining a loan for such purposes from responsible cooperative or private sources at reasonable rates and terms for loans for similar purposes and periods of time as required by section 333(c) of said Consolidated Farm and Rural Development Act (7 U.S.C. 1983(c)). 3. To provide for, execute, and comply with Form FmHA 400-4, "Assurance Agreement," and Form FmHA 400-1, "Equal Opportunity Agreement," including an "Equal Opportunity Clause," which clause is to be incorporated in, or attached as a rider to, each construction contract and subcontract involving in excess of $10,000. 4. To indemnify the Government for any payments made or losses suffered by the Government on behalf of the Association. Such indemnification shall be payable from the same source of funds pledged to pay the bonds or any other legal per- missible source. 5. That upon default in the payments of any. principal and accrued interest on the bonds or in the performance of any cov- enant or agreement contained herein or in the instruments incident to making or insuring the loan, the Governnment at its option may (a) declare the entire principal amount then outstanding and accrued interest immediately due and pay- able, (b) for the account of the Association (payable from the ~source of funds pledged to pay the bonds or any other legally permissible source), incur and pay reasonable expenses for repair, maintenance, and operation of the facility and such other reasonable expenses as may be necessary to cure the cause of default, and/or (c) take possession of the facilitY, repair, maintain, and operate or rent it. Default under the provisions of this resolution or any instrument incident to the making or insuring of the loan may be construed by the Government to constitute default under any other instrument held by the Government and executed or assumed by the Association, and default under any such instrument may be construed by the Government to constitute default hereunder. 6. Not to sell, transfer, lease, or otherwise encumber the facility or any portion thereof, or interest thereto, or permit others to do so. witho,,t the odor written consent of the Government. 7. Not to defease'the bonds, or to borrow money, enter into any contract or agreement, or otherwise incur any liabilities for any purpose in connection with the facility. (exclusive of normal maintenance) without the prior written consent of the Government if such undertaking wOuld involve the source of funds pledged to pay the bonds. 8. To place the proceeds of the bonds on deposit in an account and in a manner approved by the Government. Funds may be deposited in institutions insured by the State or Federal Government or invested in readily marketable securities backed by the full faith and credit of the United States. Any income from these accounts will be considered as revenues of the system. 9. To comply with all applicable State and Federal laws and regulations and to continually operate and maintain the facility in good condition. 10. To provide for the receipt of adequate revenues to meet the requirements of debt service, operation and maintenance, and the establishment of adequate reserves. Revenue accumulated over and above that needed to pay operating and mainte- nance, debt service and reserves may only be retained or used to. make prepayments on the loan. Revenue cannot be used to pay any expenses which are not dkectly incurred for the facility financed by FmHA. No free service or use of the facility will be permitted. ~ ~ ~ 3 Public reporting burden for this collection of information i$ estimated to average I hour per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of thi~ collection of information, including suggestions for reducing this burden, to Department of Agriculture, Clearance Officer OIRM, Room 404-W, Washington. D.C. 20250; and to the Office of Management and Budget, Pa~erworh Reduction Project ~OMB No. 0575-0015)/Washington. D. C. 20503. -2- 11. To acquire and maintain such insurance and fidelity bond coverage as may be r ed by the Government. 12[ To establish and maintain such books and records relating to the operation of the facility and its financial affairs and to provide for reqUired audit thereof as required by the Government, to provide the Government a copy of each such audit without its request, and to forward to the Government such additional information and reports as it may from time to time require. 13. To provide the Government at all reasonable times access to all books and records relating to the facility and access to the property of the system so that the Government may ascertain that the Association is complying with the provisions hereof and of the instruments incident to the making or insuring of the loan. 14. That if the Government requires that a reserve account be established and maintained, disbursements from that account may be used when necessary for payments due on the bond ff sufficient funds are not otherwise available. With the prior written approval of the Government, funds may be withdrawn for: (a) Paying the cost of repairing or replacing any damage to the facility caused by catastrophe. (b) Repairing or replacing short-lived assets. (c) Making extensions or improvements to the facility. Any time funds are disbursed from the reserve account, additional deposits will be required until the reserve account has reached the required funded level. 15. To provide adequate service to all persons within the service area who can feasibly and legally be served and to obtain FmHA's concurrence prior to refusing new or adequate services to such persons. Upon failure to provide services which are feasible and legal, such person shall have a direct right of action against the Association or public body. 16. To comply with the'measures identified in the Government's environmental impact analysis for this facility for the pur- pose of avoiding or reducing the adverse environmental impacts of the facility's construction or operation. 17. To accept a grant in an amount not to exceed $ under the terms offered by the Government; that the and of the Association are hereby authorized and empowered to take all action necessary or appropriate in the execution of all written instruments as may be required in regard to or as evidence of such grant; and to operate the facility under the terms offered in said grant agreement(s). The provisions hereof and the provisions of all instruments incident to the making or the insuring of the loan, unless otherwise specifically provided by the terms of such instrument, shall be binding upon the Association as long as the bonds are held or insured by the Government or assignee. The provisions of sections 6 through 17 hereof may be provided for in more specific detail in the bond resolution or ordinance; to the extent that the provisions contained in such bond resolution or ordinance mould be found to be inconsistent with the provisions hereof, these provisions shall be construed as controlling between the Association and the Goverranent or assignee The vote was: Yeas IN WITNESS WHEREOF, the C±ty Counc±l City of Port Townsend to be executed by the officers below in duplicate on this Nays Absent of the has duly adopted this resolution and caused it day of July ,19 91 . (SEAL) Attest: C±ty Clerk Title Y --~ Title -3- I, the undersigned, as hereby certify that the CERTIFICATIOI~ TO BE EXECUTED AT LOAN CLOSING of the of such Association is ~omposed of members, of whom , constituting a quorum, were present at a meeting thereof duly called and held on the day of ,19 ; and that the foregoing resolution was adoPted at such meeting by the vote shown above. I further certify that as of , the date of closing of the loan from the Farmers Home Administration, said resolution remains in effect and has not been rescinded or amended in any way. Dated, this, day of ,19 Title · k U.$.GPO: 1990.0-717-014122842