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�r <br /> 4 174 <br /> C- <br /> May 4,1983 <br /> OIm 61 RONO sal.PURCHASE CONTRACT <br /> Bruce Jones,City Attorney,reported the purchase contract,whdch had <br /> jus dd <br /> ed,had been reviews by staff an said <br /> hls contract says the C verifies the officials <br /> been prepared;that the Citvye ,laracial status tdocuments <br /> t id <br /> h <br /> j�'. prepared;that Administration <br /> i0 a gra the various stages for the <br /> e <br /> bond i will pay,the cost <br /> of Issuance,and i also <br />• addresses interest rates and established discount fate the City will <br /> have to pay. <br /> explained Kennedy, <br /> 2f 38 ftttlle Northwest SeuurItled Corporation,than briefly <br /> e p par v o£the bones,bond maturity schedule, <br /> and commented on the previous water and sewer bond issue at 138 in <br /> N., and would be refinanced at 9 208. He ten reviewed the manner in which <br /> the funding w0uld be handled for this project,pointing out the <br /> q-..' t is a major of the bond issue. After settle- <br /> , is and pre-payment amountscomponent <br /> a deducted,$9.2,million ie - <br /> n wall be left outstanding. The City will borrow et 9.208 and teed <br /> paytat 10.708. said the bond market Is currently in a good position, <br /> a possible to 0nclude a 10-year par call without a penalty clause. <br /> • Kennedy save the 1.50 debt service was right On line with the <br /> City a A bond rating by Moody. <br /> Bruce Sones pointed outa <br /> the 9.20 rate was very comeeteetiive and the <br /> k[I._ discount rat been mu h higher in the past. H recommended that <br /> • ncil authorise theMayorto enter into this purchase contract with <br /> p Seattle-Northwest Sec vies Corp. <br />} A u Kennedy what <br /> G r Councilman Michelson asked Mf.A t their fee would be and he <br /> replied St was the gross spread difference ofwhat was paid versus the <br /> L M1+k�+ sale of the bond. said 1.5 is commission expense with"take down" <br /> g�. leas than 1/2 of 18.e <br /> j . Tones said he had asked Mr Kennedy t , look at the <br /> curdid rent <br /> • rates and see If in the event 108 of the <br /> property oos <br /> t <br /> pay enwhat .red ea unecessary. Kennedy <br /> replied this would in 250/month sewer rate increase to d. <br /> # ,!� Mr.Jones said,however,an ora re that <br /> property owners of <br /> undeveloped property ave not use h assessment eau bank,there id <br /> a late charge of 0868 per a i penalty n principle and <br /> i° Interest also of y fail to p <br /> I I. Councilman s <br /> lman Michelson asked what the-vicrent bond indebtedness of the <br /> it 1,. city was and Mr.Kennedy said it was currently$42,600,000;it would <br /> increase Lo$58,255,000.with this$15,655,000,but would be aproxi- <br /> S mately$57,000,000 when the city retiree the$1.5 million in July. <br /> Councilman Ove treet asked fox a copy of the final official statement <br /> when <br /> it was <br /> available and Nr.Nennedy said they would be made available. <br /> Councilman Michelson asked what wou he v£the bones could not <br /> kdepos of and Mr.He,esedy said aheypa a pr0posing to underwrote <br /> the whole thing. <br /> by Councilman Overstreet,seconded by Councilman Alacroft,to <br /> authorise the Mayor menter opurchase c with Seattle- <br /> Northwest Securities Corporation concerning$151655,,000 1983 water and <br /> sewer revenue and refunding bones. <br /> k t Roll was called with all Councilmen voting yea. <br /> E ; <br /> Notion Carried <br />