Ordinance 2905CITY OF EDMONDS, WASHINGTON
ORDINANCE NO. 2905
AN ORDINANCE of the City of Edmonds, Washington,
relating to contracting indebtedness; providing for the
issuance of $1,690,000 par value Limited Tax General
Obligation Bonds, 1993, of the City for general City
purposes to provide funds with which to pay a part of the
cost of constructing a public works building; fixing the
date, form, maturities, interest rates, terms and
covenants of the bonds; establishing a bond redemption
fund and a construction fund; and approving the sale and
providing for the delivery of the bonds to Seattle -
Northwest Securities Corporation of Seattle, Washington.
WHEREAS, the City of Edmonds, Washington (the "City"), is in
need of constructing or acquiring a public works facility for use
by various City departments, including the combined water and sewer
system of the City, the estimated cost of which is $3,600,000,
$2,0551000 of which will be paid from the proceeds of water and
sewer revenue bonds to be issued, and the City does not have
available sufficient funds to pay the balance of that cost; NOW,
THEREFORE,
THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, DO ORDAIN
as follows:
Section 1. Debt Capacity. The assessed valuation of the
taxable property within the City as ascertained by the last
preceding assessment for City purposes for the calendar year 1993
is $2,134,829,980, and the City has outstanding general
indebtedness evidenced by limited tax general obligation bonds in
the principal amount of $2,265,000 incurred within the limit of up
to 3/4 of 1% of the value of the taxable property within the City
permitted for general municipal purposes without a vote of the
qualified voters therein, has no unlimited tax general obligation
0050287.01
-1-
bonds outstanding issued pursuant to a vote of the qualified voters
of the City, and the amount of indebtedness for which bonds are
authorized herein to be issued is $1,690,000.
Section 2. Authorization of Bonds. The City shall borrow
money on the credit of the City and issue negotiable limited tax
general obligation bonds evidencing that indebtedness in the amount
of $1,690,000 for general City purposes to provide the funds to pay
part of the cost of constructing or acquiring a public works
facility (the "Project") and to pay the costs of issuance and sale
of the bonds (the "costs of issuance"). The general indebtedness
to be incurred shall be within the limit of up to 3/4 of 1% of the
value of the taxable property within the City permitted for general
municipal purposes without a vote of the qualified voters therein.
Section 3. Description of Bonds. The bonds shall be called
Limited Tax General Obligation Bonds, 1993, of the City (the
"Bonds"); shall be in the aggregate principal amount of $1,690,000;
shall be dated January 1, 1993; shall be in the denomination of
$5,000 or any integral multiple thereof within a single maturity;
shall be numbered separately in the manner and with any additional
designation as the Bond Registrar (collectively, the fiscal
agencies of the State of Washington located in Seattle, Washington,
and New York, New York) deems necessary for purposes of
identification; and shall bear interest at the rates set forth
below (computed on the basis of a 360 -day year of twelve 30 -day
months), payable on June 1, 1993, and semiannually thereafter on
each succeeding December 1 and June 1 and shall mature on December
1 in years and amounts as follows:
0050287.01
-2-
Maturity
Interest
Years
Amounts
Rates
1993
$35,000
5.250
1994
55,000
5.25
1995
55,000
5.25
1996
60,000
5.25
1997
60,000
4.75
1998
65,000
5.00
1999
65,000
5.20
2000
70,000
5.40
2001
75,000
5.60
2002
75,000
5.75
2003
80,000
5.80
2004
851000
5.90
2005
90,000
6.00
2006
1001000
6.10
2007
105,000
6.20
2008
105,000
6.25
2012
510,000
6.30
The life of the capital facility to be constructed with the
proceeds of the Bonds exceeds the term of the Bonds.
Section 4. Registration and Transfer of Bonds. The Bonds
shall be issued only in registered form as to both principal and
interest and shall be recorded on books or records maintained by
the Bond Registrar (the "Bond Register"). The Bond Register shall
contain the name and mailing address of the owner of each Bond and
the principal amount and number of each of the Bonds held by each
owner.
Bonds surrendered to the Bond Registrar may be exchanged for
Bonds in any authorized denomination of an equal aggregate
principal amount and of the same interest rate and maturity. Bonds
may be transferred only if endorsed in the manner provided thereon
and surrendered to the Bond Registrar. Any exchange or transfer
shall be without cost to the owner or transferee. The Bond
Registrar shall not be obligated to exchange or transfer any Bond
0050287.01
-3-
during the fifteen days preceding any principal payment or
redemption date.
Section 5. Payment of Bonds. 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 checks or
drafts of the Bond Registrar mailed on the interest payment date to
the registered owners at the addresses appearing on the Bond
Register on the fifteenth day of the month preceding the interest
payment date. Principal of the Bonds shall be payable upon
presentation and surrender of the Bonds by the registered owners at
either of the principal offices of the Bond Registrar at the option
of the owners.
Section 6. Optional Redemption, Mandatory Redemption and Open
Market Purchase of Bonds. Bonds maturing in the years 1993 through
2002, inclusive, shall be issued without the right or option of the
City to redeem those Bonds prior to their stated maturity dates.
The City reserves the right and option to redeem Bonds maturing on
or after December 1, 2003, prior to their stated maturity dates on
or after December 1, 2002, as a whole at any time, or in part on
any interest payment date within one or more maturities selected by
the City (and by lot within a maturity in such manner as the Bond
Registrar shall determine), at par plus accrued interest to the
date fixed for redemption.
Bonds maturing in 2012 are Term Bonds and, if not redeemed
under the optional redemption provisions set forth above or
purchased in the open market under the provisions set forth below,
shall be called for redemption by lot (in such manner as the Bond
Registrar shall determine) at par plus accrued interest on
0050287.01
-4-
December 1 in years and amounts as follows:
Mandatory
Mandatory
Redemption
Redemption
Years
Amounts
2009
115,000
2010
125,000
2011
130,000
2012
140,000
In the event that the City shall redeem Term Bonds under the
optional redemption provisions set forth above or purchase Term
Bonds in the open market as set forth below, the Term Bonds so
redeemed or purchased (irrespective of their redemption or purchase
price) shall be credited at the par amount thereof against last
scheduled mandatory redemption amount.
Portions of the principal amount of any Bond, in installments
of $5,000 or any integral multiple thereof, may be redeemed. If
less than all of the principal amount of any Bond is redeemed, upon
surrender of that Bond at either of the principal offices of the
Bond Registrar, there shall be issued to the registered owner,
without charge therefor, a new Bond (or Bonds, at the option of the
registered owner) of the same maturity and interest rate in any of
the denominations authorized by this ordinance in the aggregate
principal amount remaining unredeemed.
The City further reserves the right and option to purchase any
or all of the Bonds in the open market at any time at a price not
in excess of par plus accrued interest to the date of purchase.
All Bonds purchased or redeemed under this section shall be
cancelled.
Section 7. Notice of Redemption. The City shall cause notice
of any intended redemption of Bonds to be given not less than
0050287.01
-5-
30 nor more than 60 days prior to the date fixed for redemption by
first-class mail, postage prepaid, to the registered owner of any
Bond to be redeemed at the address appearing on the Bond Register
at the time the Bond Registrar prepares the notice, and the
requirements of this sentence shall be deemed to have been
fulfilled when notice has been mailed as so provided, whether or
not it is actually received by the owner of any Bond. Interest on
Bonds called for redemption shall cease to accrue on the date fixed
for redemption unless the Bond or Bonds called are not redeemed
when presented pursuant to the call. In addition, the redemption
notice shall be mailed within the same period, postage prepaid, to
Moody's Investors Service, Inc., and Standard & Poor's Corporation
at their offices in New York, New York, or their successors, to
Seattle -Northwest Securities Corporation, at its principal office
in Seattle, Washington, or its successor, and to such other persons
and with such additional information as the City Finance Director
shall determine, but these additional mailings shall not be a
condition precedent to the redemption of Bonds.
Section 8. Failure to Redeem Bonds. If any Bond is not
redeemed when properly presented at its maturity or call date, the
City shall be obligated to pay interest on that Bond at the same
rate provided in the Bond from and after its maturity or call date
until that Bond, both principal and interest, is paid in full or
until sufficient money for its payment in full is on deposit in the
bond redemption fund hereinafter created and the Bond has been
called for payment by giving notice of that call to the registered
owner of each of those unpaid Bonds.
0050287.01
-6-
Section 9. Pledge of Taxes. For as long as any of the Bonds
are outstanding, the City irrevocably pledges to include in its
budget and levy taxes annually within the constitutional and
statutory tax limitations provided by law without a vote of the
electors of the City on all of the taxable property within the City
in an amount sufficient, together with other money legally
available and to be used therefor, to pay when due the principal of
and interest on the Bonds, and the full faith, credit and resources
of the City are pledged irrevocably for the annual levy and
collection of those taxes and the prompt payment of that principal
and interest.
Section 10. Form and Execution of Bonds. The Bonds shall be
printed or lithographed on good bond paper in a form consistent
with the provisions of this ordinance and state law, shall be
signed by the Mayor and City Clerk, either or both of whose
signatures may be manual or in facsimile, and the seal of the City
or a facsimile reproduction thereof shall be impressed or printed
thereon.
Only Bonds bearing a Certificate of Authentication in the
following form, manually signed by the Bond Registrar, shall be
valid or obligatory for any purpose or entitled to the benefits of
this ordinance:
CERTIFICATE OF AUTHENTICATION
This bond is one of the fully registered City of
Edmonds, Washington, Limited Tax General Obligation
Bonds, 1993, described in the Bond Ordinance.
WASHINGTON STATE FISCAL AGENCY
Bond Registrar
By
Authorized Officer
0050287.01
-7-
The authorized signing of a Certificate of Authentication shall be
conclusive evidence that the Bonds so authenticated have been duly
executed, authenticated and delivered and are entitled to the
benefits of this ordinance.
If any officer whose facsimile signature appears on the Bonds
ceases to be an officer of the City authorized to sign bonds before
the Bonds bearing his or her facsimile signature are authenticated
or delivered by the Bond Registrar or issued by the City, those
Bonds nevertheless may be authenticated, delivered and issued and,
when authenticated, issued and delivered, shall be as binding on
the City as though that person had continued to be an officer of
the City authorized to sign bonds. Any Bond also may be signed on
behalf of the City by any person who, on the actual date of signing
of the Bond, is an officer of the City authorized to sign bonds,
although he or she did not hold the required office on the date of
issuance of the Bonds.
Section 11. Bond Registrar. The Bond Registrar shall keep,
or cause to be kept, at its principal corporate trust office,
sufficient books for the registration and transfer of the Bonds
which shall be open to inspection by the City at all times. The
Bond Registrar is authorized, on behalf of the City, to
authenticate and deliver Bonds transferred or exchanged in
accordance with the provisions of the Bonds and this ordinance, to
serve as the City's paying agent for the Bonds and to carry out all
of the Bond Registrar's powers and duties under this ordinance and
City Ordinance No. 2451 establishing a system of registration for
the City's bonds and obligations.
The Bond Registrar 'shall be responsible for its
0050287.01
-8-
representations contained in the Bond Registrar's Certificate of
Authentication on the Bonds. The Bond Registrar may become the
owner of 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
depository for and permit any of its officers or directors to act
as members of, or in any other capacity with respect to, any
committee formed to protect the rights of Bond owners.
Section 12. Preservation of Tax Exemption for Interest on
Bonds. The City covenants that it will take all actions necessary
to prevent interest on the Bonds from being included in gross
income for federal income tax purposes, and it will neither take
any action nor make or permit any use of proceeds of the Bonds or
other funds of the City treated as proceeds of the Bonds at any
time during the term of the Bonds which will cause interest on the
Bonds to be included in gross income for federal income tax
purposes. The City also covenants that it will, to the extent
arbitrage rebate requirements of Section 148 of the Internal
Revenue Code of 1986, as amended (the "Code"), are applicable to
the Bonds, take all actions necessary to comply (or to be treated
as having complied) with those requirements in connection with the
Bonds, including the calculation and payment of any penalties that
the City has elected to pay as an alternative to calculating
rebatable arbitrage, and the payment of any other penalties if
required under Section 148 of the Code to prevent interest on the
Bonds from being included in gross income for federal income tax
purposes. The City certifies that it has not been notified of any
listing or proposed listing by the Internal Revenue Service to the
effect that it is a bond issuer whose arbitrage certifications may
0050287.01
not be relied upon.
Section 13. Designation of Bonds as "Qualified Tax -Exempt
Obligations." The City has determined and certifies that (a) the
Bonds are not "private activity bonds" within the meaning of
Section 141 of the Code; (b) the reasonably anticipated amount of
tax-exempt obligations (other than private activity bonds) which
the City and any entity subordinate to the City (including any
entity which the City controls, which derives its authority to
issue tax-exempt obligations from the City or which issues tax-
exempt obligations on behalf of the City) will issue during the
calendar year in which the Bonds are issued will not exceed
$10,000,000; and (c) the amount of tax-exempt obligations,
including the Bonds, designated by the City as "qualified tax-
exempt obligations" for the purposes of Section 265(b)(3) of the
Code during the calendar year in which the Bonds are issued does
not exceed $10,000,000. The City designates the Bonds as
"qualified tax-exempt obligations" for the purposes of
Section 265(b)(3) of the Code.
Section 14. Bonds Negotiable. The Bonds shall be negotiable
instruments to the extent provided by RCW 62A.8-102 and 62A.8-105.
Section.15. Advance Refunding or Defeasance of the Bonds.
The City may issue advance refunding bonds pursuant to the laws of
the State of Washington or use money available from any other
lawful source to pay when due the principal of and interest on the
Bonds, or any portion thereof included in a refunding or defeasance
plan, and to redeem and retire, refund or defease all such then -
outstanding Bonds (hereinafter collectively called the "defeased
Bonds") and to pay the costs of the refunding or defeasance. If
0050287.01
-10-
money and/or "government obligations" (as defined in Chapter 39.53
RCW, as now or hereafter amended) maturing at a time or times and
bearing interest in amounts (together with money, if necessary)
sufficient to redeem and retire, refund or defease the defeased
Bonds in accordance with their terms are set aside in a special
trust fund or escrow account irrevocably pledged to that
redemption, retirement or defeasance of defeased Bonds (hereinafter
called the "trust account"), then all right and interest of the
owners of the defeased Bonds in the covenants of this ordinance and
in the funds and accounts obligated to the payment of the defeased
Bonds shall cease and become void. The owners of defeased Bonds
shall have the right to receive payment of the principal of and
interest on the defeased Bonds from the trust account. The
defeased Bonds shall be deemed no longer outstanding, and the City
may apply any money in any other fund or account established for
the payment or redemption of the defeased Bonds to any lawful
purposes as it shall determine.
Section 16. Bond Fund and Deposit of Bond Proceeds. There is
created and established in the office of the City Finance Director
a special fund designated as the Limited Tax General Obligation
Bond Fund, 1993 (the "Bond Fund"). Accrued interest on the Bonds,
if any, received from the sale and delivery of the Bonds shall be
paid into the Bond Fund. There also is created and established in
the office of the City Finance Director a special fund designated
as the Capital Improvement Fund No. 325 (the "Construction or
Acquisition Fund"). The principal proceeds received from the sale
and delivery of the Bonds shall be paid into the Construction or
Acquisition Fund and used for the purposes specified in Section 2
0050287.01
-11-
of this ordinance. Until needed to pay the costs of the Project
and costs of issuance of the Bonds, the City may invest principal
proceeds temporarily in any legal investment, and the investment
earnings may be retained in the Construction or Acquisition Fund
and be spent for the purposes of that fund except that earnings
subject to a federal tax or rebate requirement may be withdrawn
from the Construction or Acquisition Fund and used for those tax or
rebate purposes. All taxes collected for and allocated to the
payment of the principal of and interest on the Bonds shall be
deposited in the Bond Fund.
Section 17. Approval of Bond Purchase Contract. Seattle -
Northwest Securities Corporation of Seattle, Washington, has
presented a purchase contract (the "Bond Purchase Contract") to the
City offering to purchase the Bonds under the terms and conditions
provided in the Bond Purchase Contract, which written Bond Purchase
Contract is on file with the City Clerk and is incorporated herein
by this reference. The City Council finds that entering into the
Bond Purchase Contract is in the City's best interest and therefore
accepts the offer contained therein and authorizes its execution by
City officials.
The Bonds will be printed at City expense and will be
delivered to the purchaser in accordance with the Bond Purchase
Contract, with the approving legal opinion of Foster Pepper &
Shefelman, municipal bond counsel of Seattle, Washington, regarding
the Bonds printed on each Bond. Bond counsel shall not be required
to review and shall express no opinion concerning the completeness
or accuracy of any official statement, offering circular or other
sales material issued or used in connection with the Bonds, and
0050287.01
-12-
bond counsel's opinion shall so state.
The proper City officials are authorized and directed to do
everything necessary for the prompt delivery of the Bonds to the
purchaser and for the proper application and use of the proceeds of
the sale thereof.
Section 18. Preliminary Official Statement Deemed Final. The
City Council has been provided with copies of a preliminary
official statement dated November 30, 1992 (the "Preliminary
Official Statement"), prepared in connection with the sale of the
Bonds. For the sole purpose of the Bond purchaser's compliance
with Securities and Exchange Commission Rule 15c2 -12(b)(1), the
City "deems final" that Preliminary Official Statement as of its
date, except for the omission of information as to offering prices,
interest rates, selling compensation, aggregate principal amount,
principal amount per maturity, maturity dates, options of
redemption, delivery dates, ratings and other terms of the Bonds
dependent on such matters.
Section 19. Temporary Bond. Pending the printing, execution
and delivery to the purchaser of definitive Bonds, the City may
cause to be executed and delivered to the purchaser a single
temporary Bond in the total principal amount of the Bonds. The
temporary Bond shall bear the same date of issuance, interest
rates, principal payment dates and terms and covenants as the
definitive Bonds, shall be issued as a fully registered Bond in the
name of the purchaser, and otherwise shall be in a form acceptable
to the purchaser. The temporary Bond shall be exchanged for
definitive Bonds as soon as they are printed, executed and
available for delivery.
0050287.01
-13-
Section 20. Effective Date of Ordinance. This ordinance
shall take effect and be in force from and after its passage and
five (5) days following its publication as required by law.
PASSED by the City Council and APPROVED by the Mayor of the
City of Edmonds, Washington, at a regular open public meeting
thereof, this 8th day of December, 1992.
Mayor
ATTEST:
Ci y Clerk
APPROVED AS TO FORM:,
Bond Cou sel
FILED WITH THE CITY CLERK: December 8, 1992
PASSED BY THE CITY COUNCIL: December 8, 1992
PUBLISHED: December 1j1, 1992
EFFECTIVE DATE: December 19, 1992
ORDINANCE NO. 2905
0050287.01
-14-
STATE OF WASHINGTON.
COUNTY OF SNOHO1%1ISH,
9-2-1
F -
Affidavit of Publication
C E I If EE
D E C 1 5 1992
'Edmonds MY e; ed(
The undersigned, being first duly sworn on oath deposes and says
that she is Principal Clerk of THE HERALD, a daily newspaper
printed and published in the City of Everett, County of Snohomish,
and State of Washington; that said newspaper is a newspaper of
general circulation in said County and State; that said newspaper
has been approved as a legal newspaper by order of the Superior
Court of Snohomish County and that the notice ........................................
.... C.ity_.of E..............................monds
..............................................................................
Ordinance No. 2905
......... .......................... ............................................... ..................................................
.................................................................................................................................... ..
a printed copy of which is hereunto attached, was published in said
newspaper proper and not in supplement form, in the regular and
entire edition of said paper on the following days and times, namely:
.... Decembe.r .... .4,...1.992...............................................................•---......-----------
.....................................................................•-------------------................---------....................
and that said newspaper was regularly distributed to its subscribers
during all of sai period.
......... ................... �-....... .. . ........•.......................
Principal e
Subscribed and sworn to befope—Xie this ....... 14th
day of,, ............. ecemt er...........
.......�F� 92
......40N .........,:.-- o
Notary Public in
... an t tat of Washington,
residing at Everet Snohomish County.
are
get,
Section ld.'Form 'and E'
xec
nmeaor. iffnoW.apnea ocy goog oona POPerin. a forma consistent
wtth'ihe"provislons, of this or I dinonce')and stote-low-shcIl- be
'sighedbY the; Movorlond CIty.i0erk,,.vither or-64cithlbf-whose
signaturesmoi�benionuol and,
In fbcsimlle 7Qndjbe_%eciIof the City
or a facsimile 'reproduchon."rebt shall WImpiressed ;�,.Prlr4iia
thereon. 4
70 ��h .. i'" the
following form Red stror, shall be
manus tj s �hd 9V elln't'",
volldor:obilgotory for'dny purpos':.e'.or'ent ed to thcbenefft of
this ordinance: - , % - - , , 11. .. , . .
CERTIFICATE,OF
-AUTHENTIC4TION
thij bond Is dne,of.the.fult4 re Istere-d. Cfty,*of%Edmond!,
Wdshjnatorl', Limited Tox'-Genera? Obligatloh'Bondsi 1993,
described in the Bond Ordinance. ) - ''; , � .> t, � *
WASHINGTON STATE:FISC L.4!GENCY
BoOdReglsfrcrr�. ,
Authorized OffbWe
.The. citho,lzed'sibnlrg of,b'Certtflcatt.6f.Au�4rM;;&l�M iholl'be
conclusive,evIdence: at'ttte:Boods 90-mlLittientleated;,have)been
,duly executed;- authenticated and. d6IlQeredqnd;,,
" entitled to
.the benefits of,'4ls ordinonce:•
Bonds- transferred -:or eXi;hdng"- In -accordance W1,M.me.-qr A I
slorts:of ihe.'Bonds�, . fs-.ordinchce; to�,seil�4;�s�ftic,
and
to.'corr. E S74
g�Nlng agent forftle= T,,Ouf,oII �of, Bond.RS
or's power4 and dutles'underfhIsord noncelahO COrdlnance
N6i2451 establishing a s'ystem,of registration for the' ffy's,bondt'
and'obligations, .;V
The Bond eiih�i
Pr ons
contained In the Bond R s- Cerifficote,oAuthenticaftnion
t Bonds. e IWO�" become., he The,Band'Reg?sVor May become., e owner.',of, Sbhds
with the. some rights ",.would hdve'ff It were not;the Bond Regis=
tar bnd,lto the -.'extent permItted,by low, mogrdct as depos"orY
Morand permit any of Ifs'officers or,Olrectoesjo oct.as memberi
of, or' In*ohV,bther�idpoc1tv Wfth,r*spect,;to;,anV committee
formed to protect the, rights. of Bond owners.
. Section 12. PrewWlloh. 6f,,rO-,Exeqf0tIOn -for.' *146rest..*on
Bonds. The
!:W
V I=ven
m
coorWthar IT Will TOKe Oil actions necessary.
WE
ent est. on tht'sonds fr6being Included -In gross
income forfederoI.Ind6n`le,,.ta9 Purposes;.ond.1t will,nefter take"
ony,octlon nor make.brZipermtt ony-u5e.of'peoceeds -of the'sonds
or,6therjunds of the C�qrbuted ps.proceeds-of the-Bonds,of any
tIme�'durIn%,the.ferm ' the'Bandswhfch,wlll'cc!Use-intL*est+on
itheBonds -be nctocQ I4qrbss'I6com64Oe.fed6roI Income fox
pi.ir�pftes: The, City 'diso', coveV W.�wlll, rto-. the exteht,,
Ntme rebote riciluirer I hM14ty of, the,linternal
,Reveaue Code bf:'1"6 "cps amended- (thC "Code."), pre applicable,
to the 'Sonds,;,toke a, actions lnecessd;ry.to?cornply (or to be
tented: as', having compiled) with those recitilrements,14 conilec.
tkw%Wtheftnds, Including the'colculotiOA and 09mentof2an
"Penotties that the City ' hos,,eI4lcftd.'tO'pOV as.,on'a Ive .
ccilculotino rebotoble',arbttro&�,Ilfiand the.. rn �Of V, other
penottfeslif* required. M
on,148'
lnftrest,on the' Bonds am MintV I d
n '
r sA
federal"Income'tax.. p �c fie
be6r'notified,of-chy- stn or cIttl
I
Revehue'Servlce to. the e ect•tnaf It Is I er. ose
orbItrooe,certificortions me be.
; :! -X
11.1 Desi g m' U � ox.x
.0611=56s. _tneT, nos, oeTerjrni
ro;i1g=ns' , 14dr, the purposes of.; Section,
v _ — �',
on 14.'SO6404'
'7MMOMIRV 62AA
inance irow in Jhegru" d0ccOurWI:
nt:ofzthe defeos6d cis gall I tea se a n i
."'Of',defeased Bonds;sholl, haVe:thelfl ht
if.wthe:%orIncIgla *Iofrond-,Interest
Wfirust occount,1hedefeased Bonds shall
.z, moppl* too
d;oY account 10.e ent
.
fidsed DondS'fo,anVlawful 4 ts
tt
°`ver�od'$hail be.odaed or deducfee! `os i:' cpvnwbie "; ^;,-
and <,:.x ,,. , ,
WifEREAS,;b "Ordincnte`•'2363''passed on April'22?1981
Clfv EREASed MM.ISsuonCe.2 51,0w, I par.yalue 0�'ks V
and Sewer Revenue Bonds' 1983 (H+e ' 1981 Bonds"), which h
were Issued on a My of lien w the.1977 Bonds; and,
WHEREAS, by rdinance No: 2363 the first subsectial9 (4
US of Section 16 + Ordiggnce, Ng.;19�7 were omerided to r,el
A mew
Cud'::-`"'.,.v...i•i.� ..
ion WHEREAS,-bV Ordlnonce No. 2678 passed on Augyust 23, 1
'the CMV'oulhorized the Issuance and! S9 990000 par va
of Its Water-and'Sewer,Revenue.Bonds 1988 (ihe 1988 Bonc
which,bonds.were Issued :on, a.portty of lien with the';.1977 Be
arhd•1he x1983 Bonds; •ond;,`
I r WHEREAS,OOBPpyny�.Section 6 of.Ordlnonce 2363, IheLCNpV,reser
hethriigMansd1994onto t1w'9u0 e998;inclm the us8ve Bonds
I-1194? 01on MI
f a},par Wus.occiued IeMerestYo,M+a doteNxed for ie;a m florryL;t
.r WHEREAS; v•Secflanr7,:of nrdlnenceKNo. 2678:.:ihe:
reserved.the-rlogf,ogd o=,,4o redeem the 1988 Bonds mV
f` on.Decemberll�t,,%,o=,,
the Vaatf 1999 through,`2008;"Inclusve
t• iDece~--- -:4-,-'.1 998yat, pa'Ptus,accrued, Interest -b the:da/e
I ,forrredemption• and _t _:•,,...{>,. °V"'•
evIne
*wlll:be a depTserv.ICe saVIn03 W aro am/,u .
combined,wofer,6nd sewerdbe sysfems; which'refunding will.be
effected by*-! .-,.2n:, - .4° 1.. ^;:. , rt
(a)�The')ssucnce:of fhe'refurhding,bonds cr )h liej,'G,fhis
.,,nrdinonce and the pbyment of the costs of issuance and refund -
(b) The fall, `payment and •redemption of •the, `1983 :Refunded
Bonds on May 1; 1993 at o pprrice of 102% of par and
' (c •The poVment.of tfhe'IrNerest -on the 1988 ifefunded:Bonds
ywhen-due, up: to and Including December -..1,; 1998,- and, on
Oecerlhber.,1 ,1998 the; call; . ent and redemption of. oil of
the outstandfng 9f)8 Refundedds N a price of par at jo-
ieveln'
WHEREAS glSedttle Northwest Secuor
rltles C6rpatlon
y has,
offered to purdhose the b6-nds'to Vay.the cost otirefgndlnp the
1988 Refunded Bends under the terms and condMbns herein set,
forth; and the Crcouncil deter4nih6d h is In the best (Merest.
of, the CIM}yy to accept that offer'•NOW; THEREFORE
-:.--';THE CITY COUNCIL OF THit CIT,,NCITY EDMONDS;;.WASHINCrj
'TON DO ORDAIN as foll6ws.,
SeeNon.1:;Defln'iflons.'As used in this ordinance" the 3o11"t .
. w lowing meanings:` .
b,•,"Acquired Obligations'! means United States Veasury Certt l-
1 -cotes and Notes — State and'LpcoI Government Serles or other'
? direct non -callable obligoffons of the United States Government: �
"Bond Fund" moons the special fund of the ICA known to d Me,
°1Nafer^;and -Sewer Revenue -Bond' -Fund , 1997777 �creafedrbVy
'Ordinance No: 1957,for the payment.of the princlpbl of Gpnd Irtter•,
'-est:on',the'1977 Bonds-ond aI11Future`,Par1N Bonds of the.City i
:,,ft redter,issued;'Including the:1983,Bonds, the 1988'Bonds and'
the. Bonds '
Bonds meons the I$7 805,000 poi value Water and Sewer
ReR
venue.efundinp 8ohds 1992 of the City oufhd'ized tom
i .Issuedbvthlsordinance.
##1977,-Sonds"r means, fife o�uh�tsstanding Water and Sewer.
;Rrvenue,Refundfng,and Construction -Bonds, 1977 ofce
the,Cty,
}Issued undMdok at ,November :1, T977, pursuant jt-6rdlnoh
1,:1988,-pursuartAtE=Ordinance .No.„2678
maluring.up xtO:onal
Including ee 1; 2001. .i. _ .. .
K: ^1983 IRM dedmlBonds": means'the;198318onds'Smaluring on
7 MC1. M eoch of ,*. m
i y ars 199/. through 1998
f
"1988:Refunded4B ds" eans the 1988 (3aWs mdlurinp;on
pecembe►:1 of each of
-. the years 2002 through 2008; incluslw: , S
"City”: moons=the:. CMy of •=Edmonds: Washlnalon-+�a duty
the:
'oiganlzed.and existing noncharhr code cl{Y tinder 1ffFMM lows of Mx,
State of Washington. x:: , . ... ,;.••_ ,_; :�.;.•,
i:'Yavetoge ReoukemeM;'means'-1:pS:Hines, theiportion-of
annual debt service; excluding the Inclp 11 of any Term Bonds If,
the fayn,ent for such Term Bonds' is •being provided for' by a
'sink hg fund,, on the, 1977. Bonds -the 1983 Bonds the'198813orWs,
;the; Bonds dnd;any'Future Porfty•BonI actually paid from
Revenue:of fhe-Svsfem-,and not from OLID Assessments, after;
;•pdymeM of OPer ng ond.Molntenonce Expenses.-'."i'�•-.
.-. re.PrrMv�B�olhd�'. earn a„I:r Zvi : a and �1 o I
the Blinds. ;
ff "taovernnhent Obllgahons" mearhs'dlrecl obligahons'of or
obligations the principal of and Interest on which are uncondt"on•,
ally guaranteed by the United states of America. ±,4•` • n _
Operating and Maintenance Expenses" means all reasonobte
expenses. incurred bY.the CMV,In'cousing,the.,Systerplto,be
oWoted , and:;lnOlMalnneetltl; In ,good ` repair,- working, order, --and. '
tonditldn--but`shall not incluodee any depredation. or�toxes,:•ori
chases
fn (leu ofaaxes levled..oc Imposed by the CMV. ,� _'• .'+
'PYlndpal�and••Interest'Account",means theloccount.of.thati
.name treated In ))he Bond Fund forAhe PaYma�� of the principal1
of -and interest on the -1977 Bonds the 1983 Bonds the, 1988 Bonds
the Bonds and all Future Portty. Bonds of the City Payoble•out Off
K
that
h�N+
i.•/huij
r(a
.. ch.erdplogcemplan"
erhfurykj cel ds'of.the�Borldswhlch�sP=ee,',, the
Acoulred Abllga• t
REFORE ':'
EQMONOS, WASHING.'
ordinOMM the 1010wing;
the _'17 805,000. par value Water and Sewer
Bonnddss - 1992, of the CHV authbrlted to be
wince. - —1.neaps the. on1lsfanding Woter' and Sewer
p jpnd COnstr on Bonds, 1977 of the. City
of=November 1; L977, pursuant �o'Ordlnahc*
ACV 1, 1997 ar 'U' v,
the I[terO on the 19 RefurWad Bonds
id InacludlnO December 1, 2002; and, on
Ref.Ind d Bondnt s and redemptlon Of all of
+e costs at Issul" the bonds and tt&Ving'
oreement" meons�that,Contract between
ging Trustee provlding for carryino'outthe.
" rneon; .Puget Sound Nptlphal �go6k of