Ordinance 3151CITY OF EDMONDS, WASHINGTON
ORDINANCE NO. 3151
AN ORDINANCE of the City of Edmonds, Washington, relating to contracting
indebtedness; approving and authorizing the execution and delivery of a lease with
option to purchase agreement to acquire fire equipment for City purposes; and
appointing an escrow agent and authorizing the execution and delivery of an
escrow agreement.
WHEREAS, the City of Edmonds, Washington (the "City"), is in need of two new fire
trucks (the "Equipment "), the total cost of which (include sales tax) is $600,015; and
WHEREAS, the City does not have available sufficient funds to pay the cost of acquiring
the Equipment ($600,015); and
WHEREAS, First Municipal Leasing Corporation (the "Lessor ") has offered to acquire
the Equipment and lease the Equipment to the District pursuant to a Lease with Option to
Purchase Agreement (the "Agreement ") substantially in the form on file with the Director of
Administrative Services; and
WHEREAS, pending delivery of and final payment for the Equipment, an amount which,
together with interest thereon, will be sufficient to pay the purchase price of the Equipment will
be deposited in escrow with The Fifth Third Bank, Cincinnati, Ohio (the "Escrow Agent ")
pursuant to an Escrow Agreement (the "Escrow Agreement ") among the Escrow Agent, the
Lessor and the City substantially in the form on file with the Director of Administrative
Services; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, DO ORDAIN
as follows:
0295924.02
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 1997 is
$2,641,482,032, and the City has outstanding general indebtedness evidenced by limited tax
general obligation bonds and leases in the principal amount of $7,495,000 incurred within the
limit of up to 1 -1/2% of the value of the taxable property within the City permitted for general
municipal purposes without a vote of the qualified voters therein, unlimited tax general
obligation bonds in the principal amount of $9,275,000 incurred within the limit of up to 2 -1 /2%
of the value of the taxable property within the City for capital purposes only, 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 $600,015.
Section 2. Authorization of Agreement and Escrow Agreement. The City
Council deems it to be in the best interest of the City to finance the.acquisition of the Equipment
for the purchase price of $600,015 on the terms and conditions set forth in the Agreement. The
principal amount payable to Lessor under the Agreement shall not exceed $600,015, shall bear
interest at a rate of not to exceed 5.5 % per annum, and shall be payable in seven annual
installments of principal and interest, commencing April 30, 1998. The City Council approves
the appointment of The Fifth Third Bank as the Escrow Agent. The City Council further
approves the Agreement and the Escrow Agreement, with such changes as the Director of
Administrative Services and Bond Counsel to the City shall deem necessary and appropriate, and
authorizes and directs the Director of Administrative Services to execute and deliver the
Agreement and the Escrow Agreement, together with all other closing documents as are
reasonable and necessary to carry out the purpose of this ordinance.
0295924.02
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Section 3. Registration and Transfer of Agreement. The Director of
Administrative Services of the City is appointed registrar for the Agreement and to fulfill the
duties of Registrar set forth in Ordinance No. 2451 of the City establishing a system of
registration for the City's bonds and obligations.. The Agreement may not be assigned or
transferred except on the books of the Registrar. The City acknowledges that Lessor intends to
assign the Agreement to The Fifth Third Bank, which assignment will be recorded on the books
of the Registrar.
Section 4. Preservation of Tax Exemption for Interest on the Agreement. The
City covenants that it will take all actions necessary to prevent amounts treated for federal
income tax purposes as interest paid under the Agreement 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 the Equipment or funds of the City treated as proceeds of the Agreement at any time during
the term of the Agreement that would cause amounts treated for federal income tax purposes as
interest on the Agreement to be 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 an issuer of obligations whose arbitrage certifications may
not be relied upon.
0295924.02
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Section 5. Small Issuer Exception and Designation of Agreement as "Qualified
Tax - Exempt Obligation. " The City finds and declares that (a) it is a duly organized and existing
governmental unit of the State of Washington and has general taxing power; (b) the Agreement
is not a "private activity bond" within the meaning of Section 141 of the United States Internal
Revenue Code of 1986, as amended (the "Code "); (c) at least 95% of the net proceeds of the
Agreement will be used for local governmental activities of the City (or of a governmental unit
the jurisdiction of which is entirely within the jurisdiction of the City); (d) the aggregate face
amount of all tax- exempt obligations (other than private activity bonds and other obligations not
required to be included in such calculation) issued by the City and all entities 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) during the calendar year in which the Agreement is executed is not reasonably expected
to exceed $5,000,000; and (e) the amount of tax - exempt obligations, including the Agreement,
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 Agreement is executed does
not exceed $10,000,000. The City therefore certifies that the Agreement is eligible for the
arbitrage rebate exception under Section 148(f)(4)(D) of the Code and designates the Agreement .
as a "qualified tax - exempt obligation" for the purposes of Section 265(b)(3) of the Code.
0295924.02
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Section 6. Effective Date of Ordinance. This ordinance shall take effect and be in force
from and after its passage and five days following its publication as required by law. Any
actions taken consistent with the authority and prior to the effective date of this ordinance are
ratified, approved and confirmed.
PASSED by the City Council and APPROVED by the Mayor of the City of Edmonds,
Washington, at a regular open public meeting thereof, this 15th day of July, 1997.
(� �; �"' /-, �- "/ � 6 .
Mayor
ATTEST:
City Clerk
APPROVED AS YO FORM:
Filed with the City Clerk: 07/11/97
Passed by the City Council: 07/15/97
Published: 07/20/97
Effective Date: 07/25/97
Ordinance No. 3151
0295924.02
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SUMMARY OF ORDINANCE NO. 3151
of the City of Edmonds, Washington
On the 15th day of July, 1997, the City Council of the City of Edmonds, passed
Ordinance No. 3151. A summary of the content-of said ordinance, consisting of the
title, provides as follows:
AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON, RELATING TO
CONTRACTING INDEBTEDNESS; APPROVING AND AUTHORIZING THE
EXECUTION AND DELIVERY OF A LEASE WITH OPTION TO PURCHASE
AGREEMENT TO ACQUIRE FIRE EQUIPMENT FOR CITY PURPOSES; AND
APPOINTING AN ESCROW AGENT AND AUTHORIZING THE EXECUTION AND
DELIVERY OF AN ESCROW AGREEMENT.
The full text of this Ordinance will be mailed upon request.
DATED this 16th day of July, 1997.
CITY CLERK, SANDRA S. CHASE
RECEIVED
AYF'Vlnlll "U AU t'�FfUW Summary of. Ordinance No. 3151.
_AGENT .ECUT ON AND DE- — —. y
;THE EXECUTION :AND DE- .................................... ............................... ........................................ ...... ......... .......
- LIVERY OF AN ESCROW
AGREEMENT.
- The full text of this
Ordinance will be mailed upon
request. ......................................................................................................................................
DATED this 16th day of July,
1997.
SANDRA S. CHASE
City Clerk
P1 007 ....................................................................................................... ...............................
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:
. July 20, 1997
......................:............................................................................... ...............................
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It said newspaper 4rg y tri b ted to its subscribers
all of said period.
V.......... ......... ..........................:....
Principal Clerk
Subscribed and sworn to before me this ..... ...lst
da�of...........July 1997....
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Notary Public in and for the St a of ashington,
residing at Everett, Snohomish ouiyty.
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Affidavit of Publication JUL 2 4 1997
EDMONDS
STATE OF WASHINGTON,
COUNTY OF SNOHOHaISH,
ss
`•SUMMARY OF
ORDINANCE NO. 3151
Edmonds, Washington
The undersigned, being first duly sworn on oath deposes and says
Pn the,
1997, to CityhCouncil of the •
that she is Principal Clerk of THE HERALD, a daily newspaper
Cittlyy o.l Edmonds, assed
No.
nee
summary of the content of said
printed and published in the City of Everett, County of Snohomish,
ordinance, consisting of. the
AN title, provides as follows: THE
and State of Washington; that said newspaper is a newspaper Of
INIGTON, EDRELATTING WASH, O TO
circulation in said County and State; that said newspaper
CONTRACTING INDEBTED-
NE AUTHORIZING OTHIEGEXECU--
has been approved as a legal newspaper by order of the Superior
TION AND DELIVERY OF A
LEASE OPTIN TO
PURCHASETAGREEMENT TO
Court of Snohomish County and that the notice ......... ...............................
AYF'Vlnlll "U AU t'�FfUW Summary of. Ordinance No. 3151.
_AGENT .ECUT ON AND DE- — —. y
;THE EXECUTION :AND DE- .................................... ............................... ........................................ ...... ......... .......
- LIVERY OF AN ESCROW
AGREEMENT.
- The full text of this
Ordinance will be mailed upon
request. ......................................................................................................................................
DATED this 16th day of July,
1997.
SANDRA S. CHASE
City Clerk
P1 007 ....................................................................................................... ...............................
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:
. July 20, 1997
......................:............................................................................... ...............................
B -2 -1
It said newspaper 4rg y tri b ted to its subscribers
all of said period.
V.......... ......... ..........................:....
Principal Clerk
Subscribed and sworn to before me this ..... ...lst
da�of...........July 1997....
r
`. ............................... ......--- ................ .....- ...........
Notary Public in and for the St a of ashington,
residing at Everett, Snohomish ouiyty.
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