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Legislation #: 970350 Introduction Date: 3/20/1997
Type: Ordinance Effective Date: 3/20/1997
Sponsor: COUNCILMEMBER SWOPE
Title: Establishing the interest rates on $29,495,000.00 principal amount of General Improvement Airport Refunding Revenue Bonds, Series 1997A, authorized by Committee Substitute for Ordinance No. 970206 passed March 6, 1997; amending Section 11 of said Ordinance; authorizing the sale and delivery of said bonds to the purchaser; and declaring an emergency.

Legislation History
DateMinutesDescription
3/20/1997

Waive Charter Requirements City Council

3/20/1997

Introduce an Ordinance

3/20/1997

Passed


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ORDINANCE NO. 970350

 

Establishing the interest rates on $29,495,000.00 principal amount of General Improvement Airport Refunding Revenue Bonds, Series 1997A, authorized by Committee Substitute for Ordinance No. 970206 passed March 6, 1997; amending Section 11 of said Ordinance; authorizing the sale and delivery of said bonds to the purchaser; and declaring an emergency.

 

WHEREAS, in accordance with the provisions of Committee Substitute for Ordinance No. 970206, passed March 6, 1997, and pursuant to a Notice of Bond Sale dated March 7, 1997, (the "Notice of Bond Sale"), the Director of Finance of the City of Kansas City, Missouri, advertised for bids for the purchase of $29,495,000.00 principal amount of General Improvement Airport Refunding Revenue Bonds, Series 1997A, to be dated March 15, 1997, (the "Bonds"), said bids to be received at 9:00 o'clock A.M., Central Time, on March 20, 1997; and

 

WHEREAS, said sale was held at the Office of the City Treasurer, and of bids received pursuant to the Notice of Bond Sale, the highest and best bid received at said time for the bonds was that of Lehman Brothers and Associates, (the "Purchaser") and the Council, pursuant to the recommendation of the Director of Finance, has determined that the bid aforesaid should be accepted and has authorized the City Treasurer to accept such bid; and

 

WHEREAS, it is necessary that the Council, by ordinance, immediately fix the interest rates to be borne by the Bonds and amend Section 11 of Committee Substitute for Ordinance No. 970206 in order that the Bonds may be prepared, executed and delivered to the purchaser thereof in accordance with the Notice of Bond Sale and the bid of said purchaser and by reason of such conditions, it is for the immediate preservation of the public property that this Ordinance take effect as an emergency measure; NOW THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. That the Bonds shall mature and shall bear interest as follows:

 

SERIAL BONDS

 

STATED MATURITY PRINCIPAL INTEREST

SEPTEMBER 1 AMOUNT RATE

 

2009 $ 95,000.00 5.30%

2010 340,000.00 5.30%

2011 360,000.00 5.40%

2012 1,600,000.00 5.40%

2013 13,190,000.00 5.50%

2014 13,910,000.00 5.50%

Section 2. That Committee Substitute Ordinance No. 970206 is hereby amended be deleting Section 11 thereof and substituting the following:

 

Section 11. Redemption of Bonds Prior to Stated Maturity. The Bonds are

subject to redemption prior to maturity, at the option of the City, on September 1, 2007, and thereafter, in whole at any time or in part on any interest payment date from maturities selected by the City (Bonds of less than a single maturity to be selected in multiples of $5,000.00 principal amount by the Paying Agent in such equitable manner as it shall designate), at the redemption prices set forth below, expressed as percentages of principal amount, plus accrued interest to the redemption date.

 

Redemption Dates Redemption Prices

 

September 1, 2007, to August 31, 2008 101%

September 1, 2008, to August 31, 2009 101 %

September 1, 2009, to August 31, 2010 100%

September 1, 2010 and thereafter 100 %

 

The Bond Registrar shall call Bonds for redemption and payment as herein provided

upon receipt by the Bond Registrar at least 45 days prior to the Redemption Date of a written request of the City. Such request shall specify the principal amount of Bonds to be called for redemption and their Stated Maturities, the Redemption Price or Prices and the Redemption Date.

 

Bonds shall be redeemed in the principal amount of $5,000.00 or any integral

multiple thereof. In the case of a partial redemption of Bonds of the same Stated Maturity, the Bonds to be redeemed shall be selected by the Bond Registrar from the Outstanding Bonds of that Stated Maturity by such random allocation method as the Bond Registrar shall deem fair and appropriate and which may provide for the selection for redemption of portions of the principal of Outstanding Bonds of that Stated Maturity that have been issued in a denomination larger than $5,000.00. The portions of the principal of Outstanding Bonds so selected for partial redemption shall be equal to $5,000.00 or integral multiples thereof. Any Bond which is to be redeemed only in part shall be submitted to the Paying Agent and delivered to the Bond Registrar, who shall authenticate and deliver to the Holder of such Bond, without service charge, a new Bond or Bonds, of any authorized denomination as requested by such Holder in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered; provided, however, that upon a redemption of all or a portion of the Bonds, the Holder may make a notation on the back panel of the certificate as provided in Section 5 hereof. If the Holder of any such Bond of a denomination greater than $5,000.00 shall fail to present such Bond to the Paying Agent for payment and exchange as aforesaid, such Bond shall, nevertheless, become due and payable on the Redemption Date to the extent of the principal amount of such Bond called for redemption (and to that extent only).

 

If and when the City shall call any of the Bonds for redemption and payment prior

to the Stated Maturity thereof, the Bond Registrar shall give written notice in the name of the City of its intention to redeem and pay such Bonds at the office of the Paying Agent. In the event of a partial redemption, notice of redemption shall be given by first class mail, postage prepaid, mailed not less than 30 days nor more than 45 days prior to the Redemption Date, to the Bond Insurer and each Holder of Bonds to be redeemed, at its address appearing in the Bond Register. If the City shall call all Outstanding Bonds, notice shall be given not less than 45 days nor more than 60 days prior to the Redemption Date. All notices of redemption shall state:

 

(a) The Redemption Date;

 

(b) The Redemption Price;

 

(c) If less than all Outstanding Bonds are to be redeemed, the identification (and,

in the case of partial redemption, the respective principal amounts) of the Bonds to be redeemed;

 

(d) That on the Redemption Date, the Redemption Price will become due and

payable upon each such Bond, and that interest thereon shall cease to accrue from and after said date; and

 

(e) The place where such Bonds are to be surrendered for payment of the

Redemption Price (which shall be the office of the Paying Agent).

 

In addition to the foregoing notice, further notice shall be given by the Paying Agent

on behalf of the City as set out below, but no defect in said further notice nor any failure to give all or any portion of such further notice shall in any manner defeat the effectiveness of a call for redemption if official notice thereof is given as above prescribed.

 

(a) Each further notice of redemption given hereunder shall contain the

information required above for an official notice of redemption plus (1) the CUSIP numbers of all Bonds being redeemed; (2) the date of issue of the Bonds as originally issued; (3) the rate of interest borne by each Bond being redeemed; (4) the Stated Maturity of each Bond being redeemed; and (5) any other descriptive information needed to identify accurately the Bonds being redeemed.

 

(b) Each further notice of redemption shall be sent at least one day before the

mailing of notice to Bondholders by first class, registered or certified mail or overnight delivery as determined by the Paying Agent to all registered securities depositories then in the business of holding substantial amounts of obligations of types comprising the Bonds and to one or more national information services that disseminate notices of redemption of obligations such as the Bonds.

 

(c) Each check or other transfer of funds issued for the payment of the

Redemption Price of Bonds being redeemed, shall bear or have enclosed the CUSIP number of the Bonds being redeemed with the proceeds of such check or other transfer.

 

The Paying Agent is also directed to comply with any mandatory or voluntary

standards established by the Securities and Exchange Commission then in effect for processing redemptions of municipal securities. Failure to comply with such standards shall not affect or invalidate the redemption of any Bond.

 

The Bond Registrar shall use its best efforts to deliver any such notice to the

Depository on the business day next preceding the date of mailing of such notice to all other owners of the Bonds.

 

The failure of the Holder of any Bond to be redeemed to receive written notice mailed

pursuant hereto shall not affect or invalidate the redemption of said Bond. If any Bond is called for redemption and payment as aforesaid, all interest on such Bond shall cease from and after the date for which such call is made, provided funds are made available to the Paying Agent for its payment on the Redemption Date at the Redemption Price.

 

If and when there shall have accumulated in the Extension and Bond Retirement

Account heretofore created and ratified by Section 16 of this Ordinance or in any other fund or account herein created or ratified any moneys or investments which the Council shall have determined shall be used for the redemption and retirement prior to maturity of the Bonds, the Director of Finance of the City shall publish notice calling for tenders from the holders of any of the Bonds, provided the Director may delay any call for tenders until the amount available for the purchase of Bonds aggregates not less than Fifty Thousand Dollars ($50,000.00). Such notice shall specify the date upon which sealed tenders will be received and shall be published in the City of New York, New York, not less than fifteen days prior to the date as specified. A copy of said notice shall be sent by United States mail to the manager of the underwriting group purchasing the Bonds, said notices to be mailed not less than fifteen days prior to the date specified for the receipt of tenders. Purchase of Bonds shall be made by the acceptance of the lowest priced tenders received (such prices not to exceed the then applicable call price if the Bonds are redeemable) at a price not exceeding the principal amount of the Bonds to be purchased together with accrued interest thereon to date of purchase, together with a premium of three percent (3%) of such principal amount, such Bonds to be purchased to the extent permitted by the funds on hand in the Account and available for such purchase. If any Bonds are redeemable, any moneys not used for the purchase of Bonds as aforesaid shall be used to redeem and pay Bonds by call for redemption prior to maturity on the next date upon which the Bonds are redeemable in accordance with the provisions hereinbefore contained in this Section 11. Nothing herein contained shall obligate the City to call for tenders more frequently than once in any three-month period.

 

Section 3. That the Bonds shall be duly prepared and executed in accordance with the provisions of Committee Substitute for Ordinance No. 970206, and the Bonds, when duly prepared and executed, shall be sold and delivered by the Director of Finance to the Purchaser thereof, upon payment of the purchase price thereof to the City Treasurer or to the Director of Finance.

 

Section 4. This Ordinance is declared to be an emergency measure within the provisions of Section 15, Article III of the Charter and shall take effect immediately upon its passage.

 

 

Approved as to form and legality:

 

 

 

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Assistant City Attorney