Ordinance 3235CITY OF EDMONDS, WASHINGTON
ORDINANCE NO. 3235
AN ORDINANCE of the City of Edmonds, Washington, relating to
contracting indebtedness; providing for the issuance of $4,480,000 par value of
limited tax general obligation refunding bonds, 1998, of the City for general City
purposes to provide funds with which to pay the cost of advance refunding the
callable portions of City's outstanding Limited Tax General Obligation Bonds,
1993, and Limited Tax General Obligation Bonds, 1995, and paying the
administrative costs of such refunding and the costs of issuance and sale of such
bonds; fixing the date, form, maturities, interest rates, terms and covenants of the
bonds; establishing a bond redemption fund; providing for and authorizing the
purchase of certain obligations out of the proceeds of the sale of the bonds herein
authorized and for the use and application of the money derived from those
investments; authorizing the execution of an agreement with Chase Manhattan
Trust Company, National Association, of Seattle, Washington, as refunding
trustee; providing for the call, payment and redemption of the bonds to be
refunded; providing for bond insurance; and approving the sale and providing for
the delivery of the bonds to Seattle- Northwest Securities Corporation of Seattle,
Washington.
Prepared By:
Foster Pepper & Shefelman PLLC
1111 Third Avenue, Suite 3400
Seattle, Washington 98101
(206) 447 -4400
50060933.02
Section 1.
Section 2.
Section 3.
Section 4.
Section 5.
Section 6.
Section 7.
Section 8.
Section 9.
Section 10
Section 11
Section 12
Section 13
Section 14
Section 15
Section 16
Section 17
Section 18
Section 19
Section 20
Section 21
Section 22
Section 23
Section 24
Section 25
50060933.02
CITY OF EDMONDS, WASHINGTON
ORDINANCE NO. 3235
TABLE OF CONTENTS
Definitions............................................................................... ............................... 3
DebtCapacity ........................................................................... ..............................5
Authorization of Bonds ............................................................. ..............................6
Descriptionof Bonds ................................................................ ..............................6
Registration and Transfer of Bonds ........................................... ..............................7
Paymentof Bonds ..................................................................... ..............................9
Optional Redemption and Open Market Purchase of Bonds ...... ..............................9
Noticeof Redemption .............................................................. .............................10
Failure To Redeem Bonds ........................................................ .............................11
Pledgeof Taxes ....................................................................... .............................11
Form and Execution of Bonds .................................................. .............................11
BondRegistrar ......................................................................... .............................12
Preservation of Tax Exemption for Interest on Bonds .............. .............................13
Designation of Bonds as "Qualified Tax- Exempt Obligations." .............................13
BondsNegotiable .................................................................... .............................14
Refunding or Defeasance of the Bonds .................................... .............................14
Bond Fund and Deposit of Bond Proceeds ............................... .............................15
Refunding of the Refunded Bonds ........................................... .............................15
Call for Redemption of the Refunded Bonds ............................ .............................18
City Findings with Respect to Refunding ................................. ........................:....19
Approval of Bond Purchase Contract ....................................... .............................20
Preliminary Official Statement Deemed Final ........................ ...............................
20
Undertaking to Provide Continuing Disclosure ...................... ...............................
21
BondInsurance ........................................................................ .............................23
Effective Date of Ordinance ................................................... ...............................
26
CITY OF EDMONDS, WASHINGTON
ORDINANCE NO. 3235
AN ORDINANCE of the City of Edmonds, Washington, relating to contracting
indebtedness; providing for the issuance of $4,480,000 par value of limited tax
general obligation refunding bonds, 1998, of the City for general City purposes to
provide funds with which to pay the cost of advance refunding the callable
portions of City's outstanding Limited Tax General Obligation Bonds, 1993, and
Limited Tax General Obligation Bonds, 1995, and paying the administrative costs
of such refunding and the costs of issuance and sale of such bonds; fixing the
date, form, maturities, interest rates, terms and covenants of the bonds;
establishing a bond redemption fund; providing for and authorizing the purchase
of certain obligations out of the proceeds of the sale of the bonds herein
authorized and for the use and application of the money derived from those
investments; authorizing the execution of an agreement with Chase Manhattan
Trust Company, National Association, of Seattle, Washington, as refunding
trustee; providing for the call, payment and redemption of the bonds to be
refunded; providing for bond insurance; and approving the sale and providing for
the delivery of the bonds to Seattle- Northwest Securities Corporation of Seattle,
Washington.
WHEREAS, pursuant to Ordinance No. 2905, the City of Edmonds, Washington (the
"City "), heretofore issued its $1,690,000 par value Limited Tax General Obligation Bonds, 1993
(the "1993 Bonds "), for general City purposes to provide funds necessary to pay part of the cost
of constructing a public works building; and
WHEREAS, by Ordinance No. 2905 the City reserved the right to redeem the 1993
Bonds maturing on and after December 1, 2003, prior to their stated maturity dates on
December 1, 2002, or on any interest payment date thereafter, at a price of par plus accrued
interest to the date fixed for redemption; and
WHEREAS, there are presently outstanding $1,075,000 par value of 1993 Bonds
maturing or subject to mandatory redemption on December 1 of each of the years 2003 through
2012, inclusive, and bearing various interest rates from 5.80% to 6.30% (the "1993 Refunded
Bonds "); and
50060933.02
WHEREAS, pursuant to Ordinance No. 3034, the City heretofore issued its $5,000,000
par value Limited Tax General Obligation Bonds, 1995 (the "1995 Bonds "), for general City
purposes to provide funds necessary to pay the cost of acquiring and renovating a building
together with adjacent parking space to serve as a new city hall; and
WHEREAS, by Ordinance No. 3034 the City reserved the right to redeem the 1995
Bonds maturing on and after December 1, 2006, prior to their stated maturity dates on
December 1, 2005, or on any interest payment date thereafter, at a price of par plus accrued
interest to the date fixed for redemption; and
WHEREAS, there are presently outstanding $2,985,000 par value of 1995 Bonds
maturing or subject to mandatory redemption on December 1 of each of the years 2006 through
2014, inclusive, and bearing various interest rates from 5.15% to 5.75% (the "1995 Refunded
Bonds "); and
WHEREAS, after due consideration, it appears to the City Council that the 1993
Refunded Bonds and the 1995 Refunded Bonds (collectively, the "Refunded Bonds ") may be
refunded by the issuance and sale of the limited tax general obligation refunding bonds
authorized herein (the "Bonds ") so that a substantial savings will be effected by the difference
between the principal and interest cost over the life of the Bonds and the principal and interest
cost over the life of the Refunded Bonds but for such refunding, which refunding will be effected
by:
(a) The issuance of the Bonds and the payment of the costs of the issuance of
the Bonds and the costs of the refunding;
(b) The payment of the interest on the 1993 Refunded Bonds when due up to
and including December 1, 2002, and the call, payment and redemption on
December 1, 2002, of all of the 1993 Refunded Bonds at a price of par;
and
50060933.02 -2-
and
(c) The payment of the interest on the 1995 Refunded Bonds when due up to
and including December 1, 2005, and the call, payment and redemption on
December 1, 2005, of all of the 1995 Refunded Bonds at a price of par;
WHEREAS, to effect that refunding in the manner that will be most advantageous to the
City and its taxpayers it is found necessary and advisable that certain Acquired Obligations
(hereinafter defined) bearing interest and maturing at such time or times as necessary to
accomplish the refunding as aforesaid be purchased out of a portion of the proceeds of the
Bonds; and
WHEREAS, the City Council deems it to be in the best interests of the City to issue and
sell the Bonds to pay the cost of advance refunding the Refunded Bonds and to pay the
administrative costs of such refunding and the costs of issuance and sale of the Bonds; and
WHEREAS, MBIA Insurance Corporation of Armonk, New York, has made a
commitment to issue an insurance policy (the "Municipal Bond Insurance Policy ") insuring the
payment when due of the principal of and interest on the Bonds to be issued as provided therein,
and the City Council deems that the purchase of the Municipal Bond Insurance Policy is in the
best interest of the City; and
WHEREAS, Seattle- Northwest Securities Corporation of Seattle, Washington, has
offered to purchase the Bonds under the terms and conditions hereinafter set forth in the form of
a bond purchase contract; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, DO ORDAIN
AS FOLLOWS:
Section 1. Definitions. As used in this ordinance, the following words shall have the
following meanings:
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"Acquired Obligations" means those United States Treasury Certificates of Indebtedness,
Notes and Bonds - -State and Local Government Series and other direct, noncallable obligations
of the United States of America purchased to accomplish the refunding of the Refunded Bonds
as authorized by this ordinance.
"Bond Fund" means that special fund of the City known as the Limited Tax General
Obligation Refunding Bond, 1998, created by this ordinance for the payment of the principal of
and interest on the Bonds.
"Bond Insurer" means MBIA Insurance Corporation of Armonk, New York.
"Bond Register" means the registration books of the Bond Registrar on which are
recorded the names of the owners of the Bonds.
"Bond Registrar" means the fiscal agencies of the State of Washington as the same may
be designated from time to time.
"Bonds" means the $4,480,000 par value of Limited Tax General Obligation Refunding
Bonds, 1998, authorized to be issued by this ordinance.
"City" means the City of Edmonds, Washington, a duly organized code city of the State
of Washington.
"Code" means the Internal Revenue Code of 1986, as amended.
"DTC" means The Depository Trust Company, New York, New York.
"Letter of Representations" means the Blanket Issuer Letter of Representations dated
August 6, 1996, between the City and DTC.
"Municipal Bond Insurance Policy" means the policy issued by the Bond Insurer insuring
the payment when due of the principal of and interest on the Bonds as provided therein.
"1993 Refunded Bonds" means the outstanding Limited Tax General Obligation Bonds,
1993, of the City maturing or subject to mandatory redemption in the years 2003 through 2012,
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inclusive, issued pursuant to Ordinance No. 2905, the refunding of which has been provided for
by this ordinance.
"1995 Refunded Bonds" means the outstanding Limited Tax General Obligation Bonds,
1995, of the City maturing or subject to mandatory redemption in the years 2006 through 2014,
inclusive, issued pursuant to Ordinance No. 3034, the refunding of which has been provided for
by this ordinance.
"Refunded Bonds" means, collectively, the 1993 Refunded Bonds and the 1995
Refunded Bonds.
"Refunding Plan" means:
(a) the placement of sufficient proceeds of the Bonds which, with
other money of the City, if necessary, will acquire the Acquired Obligations to be
deposited, with cash, if necessary, with the Refunding Trustee;
(b) the payment of the interest on the 1993 Refunded Bonds when due
up to and including December 1, 2002, and the call, payment and redemption on
December 1, 2002, of all of the 1993 Refunded Bonds at a price of par;
(c) the payment of the interest on the 1995 Refunded Bonds when due
up to and including December 1, 2005, and the call, payment and redemption on
December 1, 2005, of all of the 1995 Refunded Bonds at a price of par; and
(d) the payment of the costs of issuing the Bonds and the costs of
carrying out the foregoing elements of the Refunding Plan.
"Refunding Trust Agreement" means a Refunding Trust Agreement between the City and
the Refunding Trustee substantially in the form of that which is on file with the City Clerk and
by this reference incorporated herein.
"Refunding Trustee" means Chase Manhattan Trust Company, National Association, of
Seattle, Washington, serving as trustee or escrow agent or any successor trustee or escrow agent.
Section 2. 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 1998 is
$2,669,171,559, and the City has outstanding general indebtedness evidenced by limited tax
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general obligation bonds (excluding the Refunded Bonds), contracts and loans in the principal
amount of $5,764,506 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 and 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. The amount of
indebtedness for which bonds are authorized herein to be issued is $4,480,000.
Section 3. Authorization of Bonds. The City shall borrow money on the credit of the
City and issue negotiable limited tax general obligation refunding bonds evidencing that
indebtedness in the amount of $4,480,000 for the purpose of providing the money required to
carry out the Refunding Plan. The general indebtedness to be incurred shall be 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.
Section 4. Description of Bonds. The Bonds shall be called Limited Tax General
Obligation Refunding Bonds, 1998, of the City; shall be in the aggregate principal amount of
$4,480,000; shall be dated December 1, 1998; 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 deems necessary for purposes of
identification; shall bear interest (computed on the basis of a 360 -day year of twelve 30 -day
months) payable semiannually on each June 1 and December 1, commencing June 1, 1999, to the
maturity or earlier redemption of the Bonds; and shall mature on December 1 in years and
amounts and bear interest at the rates per annum as follows:
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Maturity
Interest
Years
Amounts
Rates
1999
$ 45,000
4.00%
2000
35,000
4.00
2001
30,000
4.00
2002
3 5, 000
4.00
2003
120,000
4.00
2004
125,000
4.00
2005
130,000
4.00
2006
400,000
4.00
2007
415,000
4.00
2008
430,000
4.10
2009
450,000
4.10
2010
470,000
4.20
2011
490,000
4.25
2012
510,000
4.30
2013
390,000
4.40
2014
405,000
4.40
Section 5. 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 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 during the 15 days
preceding any principal payment or redemption date.
The Bonds initially shall be registered in the name of CEDE & CO., as the nominee of
DTC. The Bonds so registered shall be held in fully immobilized form by DTC as depository in
accordance with the provisions of the Letter of Representations. Neither the City nor the Bond
Registrar shall have any responsibility or obligation to DTC participants or the persons for whom
50060933.02 -7-
they act as nominees with respect to the Bonds regarding accuracy of any records maintained by
DTC or DTC participants of any amount in respect of principal of or interest on the Bonds, or
any notice which is permitted or required to be given to registered owners hereunder (except
such notice as is required to be given by the Bond Registrar to DTC).
For so long as any Bonds are held in fully immobilized form, DTC or its successor
depository shall be deemed to be the registered owner for all purposes hereunder and all
references to registered owners, bondowners, bondholders or the like shall mean DTC or its
nominees and shall not mean the owners of any beneficial interests in the Bonds. Registered
ownership of such Bonds, or any portions thereof, may not thereafter be transferred except: (i) to
any successor of DTC or its nominee, if that successor shall be qualified under any applicable
laws to provide the services proposed to be provided by it; (ii) to any substitute depository
appointed by the City or such substitute depository's successor; or (iii) to any person if the Bonds
are no longer held in immobilized form.
Upon the resignation of DTC or its successor (or any substitute depository or its
successor) from its functions as depository, or a determination by the City that it no longer
wishes to continue the system of book entry transfers through DTC or its successor (or any
substitute depository or its successor), the City may appoint a substitute depository. Any such
substitute depository shall be qualified under any applicable laws to provide the services
proposed to be provided by it.
If (i) DTC or its successor (or substitute depository or its successor) resigns from its
functions as depository, and no substitute depository can be obtained, or (ii) the City determines
that the Bonds are to be in certificated form, the ownership of Bonds may be transferred to any
person as provided herein and the Bonds no longer shall be held in fully immobilized form.
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Section 6. 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 15th day of the month preceding
the interest payment date or, if requested in writing by a registered owner of $1,000,000 or more
in principal amount of Bonds at least 10 days before an interest payment date, by wire transfer on
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. Notwithstanding the foregoing, as long as the Bonds are
registered in the name of DTC or its nominee, payment of principal of and interest on the Bonds
shall be made in the manner set forth in the Letter of Representations.
Section 7. Optional Redemption and Open Market Purchase of Bonds. Bonds maturing
in the years 1999 through 2008, 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, 2009, prior to their stated maturity dates at
any time on or after December 1, 2008, as a whole or in part (within one or more maturities
selected by the City and randomly within a maturity in such manner as the Bond Registrar shall
determine), at par plus accrued interest to the date fixed for redemption.
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
50060933.02 -9-
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 any price acceptable to the City plus accrued interest to the date of
purchase.
All Bonds purchased or redeemed under this section shall be canceled.
Notwithstanding the foregoing, for so long as the Bonds are registered in the name of
Cede & Co., as nominee of DTC, selection of Bonds for redemption shall be in accordance with
the Letter of Representations (as it may be changed).
Section 8. Notice of Redemption. The City shall cause notice of any intended
redemption of Bonds to be given not less than 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 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, to the Bond Insurer at its principal office in Armonk, New
York, 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. Notwithstanding the foregoing, for so long as the Bonds are
50060933.02 _10-
registered in the name of Cede & Co., as nominee of DTC, notice of redemption shall be given in
accordance with the Letter of Representations (as it may be changed).
Section 9. 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 Fund and the Bond has been called for payment by giving notice of that call to the
registered owner of each of those unpaid Bonds.
Section 10. 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 11. 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 and
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:
50060933.02 -1 I -
CERTIFICATE OF AUTHENTICATION
This Bond is one of the fully registered City of Edmonds, Washington,
Limited Tax General Obligation Refunding Bonds, 1998, described in the Bond
Ordinance.
WASHINGTON STATE FISCAL AGENCY
Bond Registrar
Authorized Signer
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, issued and delivered 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 12. 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.
50060933.02 -12-
The Bond Registrar shall be responsible for its 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 13. 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 the arbitrage rebate requirement of Section 148 of the Code is applicable to the Bonds,
take all actions necessary to comply (or to be treated as having complied) with that requirement
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 not be relied upon.
Section 14. Designation of Bonds as "Qualified Tax - Exempt Obligation s." 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 and other obligations not required to be included in such calculation)
50060933.02 -13-
which the City and any entity subordinate to the City (including any entity that the City controls,
that derives its authority to issue tax - exempt obligations from the City, or that 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 15. Bonds Negotiable. The Bonds shall be negotiable instruments to the extent
provided by RCW 62A.8 -102 and 62A.8 -105.
Section 16. Refunding or Defeasance of the Bonds. The City may issue 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, release, 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 money and /or direct obligations of the United States
of America sufficient in amount, together with known earned income from investments thereof,
to redeem and retire, release, 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 City shall include in
50060933.02 -14-
the refunding or defeasance plan such provisions as the City deems necessary for the random
selection of any defeased Bonds that constitute less than all of a particular maturity of the Bonds,
for notice of the defeasance to be given to the owners of the defeased Bonds and to such other
persons as the City shall determine, and for any required replacement of Bond certificates for
defeased Bonds. 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.
Notwithstanding anything in this section to the contrary, if the principal of and /or interest
due on the Bonds is paid by the Bond Insurer pursuant to the Municipal Bond Insurance Policy,
the Bonds shall be treated as remaining outstanding for all purposes and shall not be considered
paid the City, and the covenants, agreements and other obligations of the City to the registered
owners of the Bonds shall continue to exist and run to the benefit of the Bond Insurer, and the
Bond Insurer shall be subrogated to the rights of the registered owners.
Section 17. Bond Fund and Deposit of Bond Proceeds. The Bond Fund is created and
established in the office of the City Finance Director as a special fund designated the Limited
Tax General Obligation Refunding Bond Fund, 1998, for the purpose of paying principal of and
interest on the Bonds. Accrued interest on the Bonds, if any, received from the sale and delivery
of the Bonds shall be paid into the Bond Fund. 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. The
proceeds of the Bonds shall be deposited in accordance with the provisions of Section 18 herein.
Section 18. Refunding of the Refunded Bonds.
(a) Appointment of Refunding Trustee. Chase Manhattan Trust Company, National
Association, of Seattle, Washington, is appointed Refunding Trustee.
50060933.02 -15-
(b) Use of Bond Proceeds; Acquisition of Acquired Obligations. All of the proceeds
of the sale of the Bonds, exclusive of the accrued interest thereon which shall be paid into the
Bond Fund, shall be deposited immediately upon the receipt thereof with the Refunding Trustee
and used to discharge the obligations of the City relating to the Refunded Bonds under
Ordinances Nos. 2905 and 3034 by providing for the payment of the amounts required to be paid
by the Refunding Plan. To the extent practicable, such obligations shall be discharged fully by
the Refunding Trustee's simultaneous purchase of the Acquired Obligations, bearing such
interest and maturing as to principal and interest in such amounts and at such times so as to
provide, together with a beginning cash balance, if necessary, for the payment of the amount
required to be paid by the Refunding Plan. The Acquired Obligations are listed and more
particularly described in Schedule A attached to the Refunding Trust Agreement between the
City and the Refunding Trustee, but are subject to substitution as set forth below. Any Bond
proceeds or other money deposited with the Refunding Trustee not needed to purchase the
Acquired Obligations and provide a beginning cash balance, if any, and pay the costs of issuance
of the Bonds shall be returned to the City at the time of delivery of the Bonds to the initial
purchaser thereof and deposited in the Bond Fund to pay interest on the Bonds on the first
interest payment date.
(c) Substitution of Acquired Obligations. Prior to the purchase of any Acquired
Obligations, the City reserves the right to substitute other direct, noncallable obligations of the
United States of America ( "Government Obligations ") for any of the Acquired Obligations and
to use any savings created thereby for any lawful City purpose if, (a) in the opinion of Foster
Pepper & Shefelman PLLC, the City's bond counsel, the interest on the Bonds and the Refunded
Bonds will remain excluded from gross income for federal income tax purposes under
Sections 103, 148 and 149(d) of the Code, and (b) such substitution shall not impair the timely
50060933.02 -16-
payment of the amounts required to be paid by the Refunding Plan, as verified by a nationally
recognized independent certified public accounting firm.
After the purchase of the Acquired Obligations by the Refunding Trustee, the City
reserves the right to substitute therefor cash or Government Obligations subject to the conditions
that such money or securities held by the Refunding Trustee shall be sufficient to carry out the
Refunding Plan, that such substitution will not cause the Bonds and the Refunded Bonds to be
arbitrage bonds within the meaning of Section 148 of the Code and regulations thereunder in
effect on the date of such substitution and applicable to obligations issued on the issue date of the
Bonds, and that the City obtain, at its expense: (1) a verification by a nationally recognized
independent certified public accounting firm acceptable to the Refunding Trustee confirming that
the payments of principal of and interest on the substitute securities, if paid when due, and any
other money held by the Refunding Trustee will be sufficient to carry out the Refunding Plan;
and (2) an opinion from Foster Pepper & Shefelman PLLC, bond counsel to the City, its
successor, or other nationally recognized bond counsel to the City, to the effect that the
disposition and substitution or purchase of such securities, under the statutes, rules and
regulations then in force and applicable to the Bonds, will not cause the interest on the Bonds or
the Refunded Bonds to be included in gross income for federal income tax purposes and that
such disposition and substitution or purchase is in compliance with the statutes and regulations
applicable to the Bonds. Any surplus money resulting from the sale, transfer, other disposition
or redemption of the Acquired Obligations and the substitutions therefor shall be released from
the trust estate and transferred to the City to be used for any lawful City purpose.
(d) Administration of Refunding Plan. The Refunding Trustee is authorized and
directed to purchase the Acquired Obligations (or substitute obligations) and to make the
payments required to be made by the Refunding Plan from the Acquired Obligations (or
50060933.02 -17-
substitute obligations) and money deposited with the Refunding Trustee pursuant to this
ordinance. All Acquired Obligations (or substitute obligations) and the money deposited with
the Refunding Trustee and any income therefrom shall be held irrevocably, invested and applied
in accordance with the provisions of Ordinances Nos. 2905 and 3034, this ordinance, chapter
39.53 RCW and other applicable statutes of the State of Washington and the Refunding Trust
Agreement. All necessary and proper fees, compensation and expenses of the Refunding Trustee
for the Bonds and all other costs incidental to the setting up of the escrow to accomplish the
refunding of the Refunded Bonds and costs related to the issuance and delivery of the Bonds,
including bond printing, verification fees, insurance premium, bond counsel's fees and other
related expenses, shall be paid out of the proceeds of the Bonds.
(e) Authorization for Refunding Trust Agreement. To carry out the Refunding Plan
provided for by this ordinance, the Mayor or Finance Director of the City is authorized and
directed to execute and deliver to the Refunding Trustee a Refunding Trust Agreement
substantially in the form on file with the City Clerk and by this reference made a part hereof
setting forth the duties, obligations and responsibilities of the Refunding Trustee in connection
with the payment, redemption and retirement of the Refunded Bonds as provided herein and
stating that the provisions for payment of the fees, compensation and expenses of such
Refunding Trustee set forth therein are satisfactory to it. Prior to executing the Refunding Trust
Agreement, the Mayor or Finance Director of the City is authorized to make such changes
therein which do not change the substance and purpose thereof or which assure that the escrow
provided therein and the Bonds are in compliance with the requirements of federal law governing
the exclusion of interest on the Bonds from gross income for federal income tax purposes.
Section 19. Call for Redemption of the Refunded Bonds. The City calls for redemption
on December 1, 2002, all of the 1993 Refunded Bonds at par plus accrued interest. The City
50060933.02 .-18-
calls for redemption on December 1, 2005, all of the 1995 Refunded Bonds at par plus accrued
interest. Such calls for redemption shall be irrevocable after the delivery of the Bonds to the
initial purchaser thereof. The dates on which the Refunded Bonds are herein called for
redemption are the first dates on which the those bonds may be called.
The proper City officials are authorized and directed to give or cause to be given such
notices as required, at the times and in the manner required, pursuant to Ordinance No. 2905 in
order to effect the redemption prior to their maturity of the 1993 Refunded Bonds and pursuant
to Ordinance No. 3034 in order to effect the redemption prior to their maturity of the 1995
Refunded Bonds.
Section 20. City Findings with Respect to Refunding. The City Council finds and
determines that the issuance and sale of the Bonds at this time will effect a savings to the City
and is in the best interest of the City and its taxpayers and in the public interest. In making such
finding and determination, the City Council has given consideration to the fixed maturities of the
Bonds and the Refunded Bonds, the costs of issuance of the Bonds and the known earned income
from the investment of the proceeds of the issuance and sale of the Bonds pending payment and
redemption of the Refunded Bonds.
The City Council further finds and determines that the money to be deposited with the
Refunding Trustee for the Refunded Bonds in accordance with Section 18 of this ordinance will
discharge and satisfy the obligations of the City under Ordinance No. 2905 with respect to the
1993 Refunded Bonds and under Ordinance No. 3034 with respect to the 1995 Refunded Bonds,
and the pledges, charges, trusts, covenants and agreements of the City therein made or provided
for as to the Refunded Bonds, and that the Refunded Bonds shall no longer be deemed to be
outstanding under such ordinances immediately upon the deposit of such money with the
Refunding Trustee.
50060933.02 -19-
Section 21. 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 PLLC, municipal bond counsel of Seattle, Washington, regarding the
Bonds delivered with the Bonds. 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 or disclosure material issued or used in connection with the Bonds, and 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 22. Preliminary Official Statement Deemed Final. The City Council has been
provided with copies of a preliminary official statement dated December 4, 1998 (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
( "SEC ") 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,
50060933.02 -20-
options of redemption, delivery dates, ratings and other terms of the Bonds dependent on such
matters.
Section 23. Undertaking to Provide Continuing Disclosure. To meet the requirements of
SEC Rule 15c2- 12(b)(5) (the "Rule "), as applicable to a participating underwriter for the Bonds,
the City makes the following written undertaking (the "Undertaking ") for the benefit of holders
of the Bonds:
(a) Undertaking to Provide Annual Financial Information and Notice
of Material Events. The City undertakes to provide or cause to be provided, either
directly or through a designated agent:
(i) To each nationally recognized municipal securities
information repository designated by the SEC in accordance with the Rule
( "NRMSIR ") and to a state information depository, if any, established in
the State of Washington (the "SID") annual financial information and
operating data of the type included in the final official statement for the
Bonds and described in subsection (b) of this section ( "annual financial
information");
(ii) To each NRMSIR or the Municipal Securities Rulemaking
Board ( "MSRB "), and to the SID, timely notice of the occurrence of any
of the following events with respect to the Bonds, if material: (1) principal
and interest payment delinquencies; (2) non - payment related defaults; (3)
unscheduled draws on debt service reserves reflecting financial
difficulties; (4) unscheduled draws on credit enhancements reflecting
financial difficulties; (5) substitution of credit or liquidity providers, or
their failure to perform; (6) adverse tax opinions or events affecting the
tax - exempt status of the Bonds;, (7) modifications to rights of holders of
the Bonds; (8) Bond calls (other than scheduled mandatory redemptions of
Term Bonds); (9) defeasances; (10) release, substitution, or sale of
property securing repayment of the Bonds; and (11) rating changes; and
(iii) To each NRMSIR or to the MSRB, and to the SID, timely
notice of a failure by the City to provide required annual financial
information on or before the date specified in subsection (b) of this
section.
. (b) Type of Annual Financial Information Undertaken to be Provided.
The annual financial information that the City undertakes to provide in subsection
(a) of this section:
(i) Shall consist of (1) annual financial statements prepared
(except as noted in the financial statements) in accordance with applicable
50060933.02 -21-
generally accepted accounting principles promulgated by the Government
Accounting Standards Board ( "GASB "), as such principles may be
changed from time to time, which statements shall not be audited, except,
however, that if and when audited financial statements are otherwise
prepared and available to the City they will be provided; (2) a statement of
authorized, issued and outstanding general obligation debt of the City; (3)
the assessed valuation of property within the City subject to ad valorem
taxation; and (4) ad valorem tax levy rates and amounts and percentage of
taxes collected;
(ii) Shall be provided to each NRMSIR and the SID, not later
than the last day of the ninth month after the end of each fiscal year of the
City (currently, a fiscal year ending December 31), as such fiscal year
may be changed as required or permitted by State law, commencing with
the City's fiscal year ending December 31, 1998; and
(iii) May be provided in a single or multiple documents, and
may be incorporated by reference to other documents that have been filed
with each NRMSIR and the SID, or, if the document incorporated by
reference is a "final official statement" with respect to other obligations of
the City, that has been filed with the MSRB.
(c) Amendment of Undertaking. The Undertaking is subject to
amendment after the primary offering of the Bonds without the consent of any
holder of any Bond, or of any broker, dealer, municipal securities dealer,
participating underwriter, rating agency, NRMSIR, the SID or the MSRB, under
the circumstances and in the manner permitted by the Rule.
The City will give notice to each NRMSIR or the MSRB, and the SID, of
the substance (or provide a copy) of any amendment to the Undertaking and a
brief statement of the reasons for the amendment. If the amendment changes the
type of annual financial information to be provided, the annual financial
information containing the amended financial information will include a narrative
explanation of the effect of that change on the type of information to be provided.
(d) Beneficiaries. The Undertaking evidenced by this section shall
inure to the benefit of the City and any holder of Bonds, and shall not inure to the
benefit of or create any rights in any other person.
(e) Termination of Undertaking. The City's obligations under this
Undertaking shall terminate upon the legal defeasance of all of the Bonds. In
addition, the City's obligations under this Undertaking shall terminate if those
provisions of the Rule which require the City to comply with this Undertaking
become legally inapplicable in respect of the Bonds for any reason, as confirmed
by an opinion of nationally recognized bond counsel or other counsel familiar
with federal securities laws delivered to the City, and the City provides timely
notice of such termination to each NRMSIR or the MSRB and the SID.
50060933.02 -22-
(0 Remedy for Failure to Comply with Undertaking. As soon as
practicable after the City learns of any failure to comply with the Undertaking, the
City will proceed with due diligence to cause such noncompliance to be corrected.
No failure by the City or other obligated person to comply with the Undertaking
shall constitute a default in respect of the Bonds. The sole remedy of any holder
of a Bond shall be to take such actions as that holder deems necessary, including
seeking an order of specific performance from an appropriate court, to compel the
City or other obligated person to comply with the Undertaking.
(g) Designation of Official Responsible to Administer Undertaking,
The Finance Director of the City (or such other officer of the City who may in the
future perform the duties of the Finance Director ) or his or her designee is
authorized and directed in his or her discretion to take such further actions as may
be necessary, appropriate or convenient to carry out the Undertaking of the City in
respect of the Bonds set forth in this section and in accordance with the Rule,
including, without limitation, the following actions:
(i) Preparing and filing the annual financial information
undertaken to be provided;
(ii) Determining whether any event specified in subsection (a)
has occurred, assessing its materiality with respect to the Bonds, and, if
material, preparing and disseminating notice of its occurrence;
(iii) Determining whether any person other than the City is an
"obligated person" within the meaning of the Rule with respect to the
Bonds, and obtaining from such person an undertaking to provide any
annual financial information and notice of material events for that person
in accordance with the Rule;
(iv) Selecting, engaging and compensating designated agents
and consultants, including but not limited to financial advisors and legal
counsel, to assist and advise the City in carrying out the Undertaking; and
(v) Effecting any necessary amendment of the Undertaking.
Section 24. Bond Insurance. The City Council finds that it is in the City's best interest to
purchase, and that a savings will result from purchasing, the Municipal Bond Insurance Policy
for the Bonds. The City shall purchase from the Bond Insurer the Municipal Bond Insurance
Policy insuring the prompt payment of the principal of and interest on the Bonds and agrees to
the conditions for obtaining that policy, including the payment of the premium therefor and the
50060933.02 -23
following provisions entitled "Payments under the Policy" required by the Bond Insurer to be
included in this ordinance:
"A. In the event that, on the second Business Day, and again on the
Business Day, prior to the payment date on the Obligations, the Paying Agent [the
Bond Registrar] has not received sufficient moneys to pay all principal 'of and
interest on the Obligations due on the second following or following, as the case
may be, Business Day, the Paying Agent shall immediately notify the Insurer or its
designee on the same Business Day by telephone or telegraph, confirmed in writing
by registered or certified mail, of the amount of the deficiency.
"B. If the deficiency is made up in whole or in part prior to or on the
payment date, the Paying Agent shall so notify the Insurer or its designee.
"C. In addition, if the Paying Agent has notice that any Bondholder has
been required to disgorge payments of principal or interest on the Obligation to a
trustee in Bankruptcy or creditors or others pursuant to a final judgment by a court of
competent jurisdiction that such payment constitutes a voidable preference to such
Bondholder within the meaning of any applicable bankruptcy laws, then the Paying
Agent shall notify the Insurer or its designee of such fact by telephone or telegraphic
notice, confirmed in writing by registered or certified mail.
"D. The Paying Agent is hereby irrevocably designated, appointed,
directed and authorized to act as attorney -in -fact for Holders of the Obligations as
follows:
"I. If and to the extent there is a deficiency in amounts required
to pay interest on the Obligations, the Paying Agent shall (a) execute and
deliver to State Street Bank and Trust Company, N.A., or its successors
under the Policy (the "Insurance Paying Agent"), in form satisfactory to the
Insurance Paying Agent, an instrument appointing the Insurer as agent for
such Holders in any legal proceeding related to the payment of such interest
and an assignment to the Insurer of the claims for interest to which such
deficiency relates and which are paid by the Insurer, (b) receive as designee
of the respective Holders (and not as Paying Agent) in accordance with the
tenor of the Policy payment from the Insurance Paying Agent with respect to
the claims for interest so assigned, and (c) disburse the same to such
respective Holders; and
"2. If and to the extent of a deficiency in amounts required to pay
principal of the Obligations, the Paying Agent shall (a) execute and deliver
to the Insurance Paying Agent in form satisfactory to the Insurance Paying
Agent an instrument appointing the Insurer as agent for such Holder in any
legal proceeding relating to the payment of such principal and an assignment
to the Insurer of any of the Obligation surrendered to the Insurance Paying
agent of so much of the principal amount thereof as has not previously been
paid or for which moneys are not held by the Paying Agent and available for
50060933.02 -24-
such payment (but such assignment shall be delivered only if payment from
the Insurance Paying Agent is received), (b) receive as designee of the
respective Holders (and not as Paying Agent) in accordance with the tenor of
the Policy payment therefor from the Insurance Paying Agent, and (c)
disburse the same to such Holders.
"E. Payments with respect to claims for interest on and principal of
Obligations disbursed by the Paying Agent from proceeds of the Policy shall not be
considered to discharge the obligation of the Issuer with respect to such Obligations,
and the Insurer shall become the owner of such unpaid Obligations and claims for
the interest in accordance with the tenor of the assignment made to it under the
provisions of this subsection or otherwise.
"F. Irrespective of whether any such assignment is executed and
delivered, the Issuer and the Paying Agent hereby agree for the benefit of the Insurer
that:
"1. They recognize that to the extent the Insurer makes
payments, directly or indirectly (as by paying through the Paying Agent), on
account of principal of or interest on the Obligations, the Insurer will be
subrogated to the rights of such Holders to receive the amount of such
principal and interest from the Issuer, with interest thereon as provided and
solely from the sources stated in this Indenture and the Obligations; and
"2. They will accordingly pay to the Insurer the amount of such
principal and interest (including principal and interest recovered under
subparagraph (ii) of the first paragraph of the Policy, which principal and
interest shall be deemed past due and not to have been paid), with interest
thereon as provided in this Indenture and the Obligations, but only from the
sources and in the manner provided herein for the payment of principal of
and interest on the Obligations to Holders, and will otherwise treat the
Insurer as the owner of such rights to the amount of such principal and
interest.
"G. In connection with the issuance of additional Obligations, the Issuer
shall deliver to the Insurer a copy of the disclosure document, if any, circulated with
respect to such additional Obligations.
"H. Copies of any amendments made to the documents executed in
connection with the issuance of the Obligations which are consented to by the
Insurer shall be sent to Standard & Poor's Corporation.
"I. The Insurer shall receive notice of the resignation or removal of the
Paying Agent and the appointment of a successor thereto.
" J. The Insurer shall receive copies of all notices required to be
delivered to Bondholders and, on an annual basis, copies of the Issuer's audited
financial statements and Annual Budget.
50060933.02 -25-
"Notices: Any notice that is required to be given to a holder of the
Obligation or to the Paying Agent pursuant to the Indenture shall also be provided to
the Insurer. All notices required to be given to the Insurer under the Indenture shall
be in writing and shall be sent by registered or certified mail addressed to MBIA
Insurance Corporation, 113 King Street, Armonk, New York 10504 Attention:
Surveillance."
Section 25. 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.
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 December, 1998.
Mayor
ATTEST:
ff.fy- Clerk
APPROVED AS TO FORM:
Foster Pepper & Shefelman PLLC
Special Counsel and Bond Counsel to the City
50060933.02 -26-
SUMMARY OF ORDINANCE NO. 3235
of the City of Edmonds, Washington
On the 15th day of December, 1998, the City Council of the City of Edmonds,
passed Ordinance No. 3235. 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; PROVIDING FOR THE ISSUANCE OF $4,480,000
PAR VALUE OF LIMITED TAX GENERAL OBLIGATION REFUNDING BONDS, 1998,
OF THE CITY FOR GENERAL CITY PURPOSES TO PROVIDE FUNDS WITH WHICH
TO PAY THE COST OF ADVANCE REFUNDING THE CALLABLE PORTIONS OF
CITY'S OUTSTANDING LIMITED TAX GENERAL OBLIGATION BONDS, 1993, AND
LIMITED TAX GENERAL OBLIGATION BONDS, 1995, AND PAYING THE
ADMINISTRATIVE COSTS OF SUCH REFUNDING AND THE COSTS OF ISSUANCE
AND SALE OF SUCH BONDS; FIXING THE DATE, FORM, MATURITIES, INTEREST
RATES, TERMS AND COVENANTS OF THE BONDS; ESTABLISHING A BOND
REDEMPTION FUND; PROVIDING FOR AND AUTHORIZING THE PURCHASE OF
CERTAIN OBLIGATIONS OUT OF THE PROCEEDS OF THE SALE OF THE BONDS
HEREIN AUTHORIZED AND FOR THE USE AND APPLICATION OF THE MONEY
DERIVED FROM THOSE INVESTMENTS; AUTHORIZING THE EXECUTION OF AN
AGREEMENT WITH CHASE MANHATTAN TRUST COMPANY, NATIONAL
ASSOCIATION, OF SEATTLE, WASHINGTON, AS REFUNDING TRUSTEE;
PROVIDING FOR THE CALL, PAYMENT AND REDEMPTION OF THE BONDS TO BE
REFUNDED; PROVIDING FOR BOND INSURANCE; AND APPROVING THE SALE
AND PROVIDING FOR THE DELIVERY OF THE BONDS TO SEATTLE - NORTHWEST
SECURITIES CORPORATION OF SEATTLE, WASHINGTON.
The full text of this Ordinance will be mailed upon request.
DATED this 16th day of December, 1998.
2d �',,x ZW4_'�
CITY CLERK, SANDRA S. CHASE
STATE OF WASHINGTON,
COUNTY OF SNOHOD61ISH,
SUMMARY OF
7passed NCE NO 3235 shingtononds, Oh day of December,
199 Council of the City
of E, passed Ordina ce
No. summary conaid ordinance, as siste title, p
$4,480,000 PAR VALUt
LIMITED TAX GENERAL C
1998O
OF THE CITY FOR t
tERAL CRY PURPOSES
PROVIDE FUNDS WITH W
PTO PAY THE COST OF
VANCE REFUNDING
I CALLABLE PORTIONS
CRY S OUTSTANDING LIN
nmm�q Ef 1993.E AND L 0
Affidavit of Publication
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 ......... ...............................
Summary of Ordinance No. 3235
j
..................... ....................... ......................................... .................. ...............................
Ea printed copy of which is hereunto attached, was published, in said
IF
newspaper proper and not in supplement form, in the regular and
A entire edition of said paper on the following days and times, namely:
(ZING THE YUM.n-
CERTAIN OBLIGATIONS OUT
OF THE PROCEEDS OF THE;
SALE OF THE BONDS HEREIN_',
I AUTHORIZED AND FOR THE
USE AND APPLICATION OF
THE MONEY DERIVED FROM
THOSE INVESTMENTS;
AUTHORIZING THE EXECU- '
`,TION OF AN AGREEMENT!
WITH CHASE MANHATTAN
'TRUST COMPANY, NATIONAL
.ASSOCIATION. OF SEATTLE,
WASHINGTON. AS REFUND-
ING TRUSTEE; PROVIDING
FOR THE CALL, PAYMENT
AND REDEMPTION OF THE
BONDS TO BE REFUNDED;!
PROVIDING FOR BOND IN-
SURANCE; AND APPROVING 4
THE SALE AND PROVIDING
FOR THE DELIVERY OF THE'
BONDS TO SEATTLE- NORTH-
WEST SECURITIES CORPO-
RATION OF SEATTLE. WASH-
INGTON.
The full te>a of this Ordinance
will be mailed upon request. - -
DATED this 16th - day of
December 1998.
GY CLERK,
SANDRA S. CHASE
Published: December 1811998.
B_2 -1
and that
during a
,....1998..........................
............................ ...............................
s subscribers
inal Clerk
Subscribed and sworn to before me this.......... 18th
December 1998...
(S Notary Public in and for t e Sta a of Washington,
residing at Everett, Snoh mish ounty.
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v NOTARY Stn
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