Ordinance 3425CITY OF EDMONDS, WASHINGTON
ORDINANCE NO. 3425
AN ORDINANCE of the City of Edmonds, Washington, relating to
contracting indebtedness; providing for the issuance of $7,015,000 par value of
Limited Tax General Obligation Bonds, 2002, of the City for general City purposes
to provide funds with which to pay costs of acquiring and renovating facilities for a
performing arts theatre, creating on -site parking, and constructing a meeting room
for the theatre; fixing the date, form, maturities, interest rates, terms and covenants
of the bonds; establishing a bond redemption fund and a construction fund;
providing for bond insurance; and approving the sale and providing for the delivery
of the bonds to Seattle- Northwest Securities Corporation of Seattle, Washington.
PASSED NOVEMBER 7, 2002
This document prepared by:
Foster Pepper & Shefelman PLLC
1111 Third Avenue, Suite 3400
Seattle, Washington 98101
(206) 447 -4400
50351276.03
TABLE OF CONTENTS
Section1. Debt Capacity ............................................................................... ............................... 2
Section 2.
Authorization of Bonds ................................................................ ............................... 2
Section 3.
Description of Bonds ................................................................... ...............................
3
Section 4.
Registration and Transfer of Bonds ............................................. ...............................
4
Section5.
Payment of Bonds ........................................................................ ...............................
6.
Section 6.
Redemption Provisions and Open Market Purchase of Bonds .... ...............................
6
Section7.
Notice of Redemption .................................................................. ...............................
7
Section 8.
Failure To Redeem Bonds ........................................................... ...............................
8
Section9.
Pledge of Taxes ............................................................................ ...............................
8
Section 10.
Form and Execution of Bonds ..................................................... ...............................
8
Section11.
Bond Registrar ............................................................................. ...............................
9
Section 12.
Preservation of Tax Exemption for Interest on Bonds ............... ...............................
10
Section 13.
Designation of Bonds as "Qualified Tax - Exempt Obligations .. ...............................
10
Section 14.
Refunding or Defeasance of the Bonds ..................................... ...............................
1 I
Section 15.
Bond Fund and Deposit of Bond Proceeds ................................ ...............................
12
Section 16.
Approval of Bond Purchase Contract ........................... :...........................................
13
Section 17.
Preliminary Official Statement Deemed Final ........................... ...............................
13
Section 18.
Undertaking to Provide Continuing Disclosure ......................... ...............................
14
Section19.
Bond Insurance .......................................................................... ...............................
16
Section 20.
Payment Procedures Under Bond Insurance .............................. ...............................
18
Section 21.
Parties Interested Herein ............................................................ ...............................
19
Section 22.
Effective Date of Ordinance ...................................................... ...............................
21
50351276.03
CITY OF EDMONDS, WASHINGTON
ORDINANCE NO. 3425
AN ORDINANCE of the City of Edmonds, Washington, relating to
contracting indebtedness; providing for the issuance of $7,015,000 par value of
Limited Tax General Obligation Bonds, 2002, of the City for general City purposes
to provide funds with which to pay costs of acquiring and renovating facilities for a
performing arts theatre, creating on -site parking, and constructing a meeting room
for the theatre; fixing the date, form, maturities, interest rates, terms and covenants
of the bonds; establishing a bond redemption fund and a construction fund;
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, the City Council of the City of Edmonds, by Ordinance No. 3358, effective
May 4, 2001, established the Edmonds Public Facilities District (the "City PFD ") for City
purposes, pursuant to Chapter 35.57 RCW, to acquire, design, construct, own, finance, operate
and maintain an arts center as a regional center defined under RCW 35.57.020 (the "Regional
Center" or the "Arts Center "); and
WHEREAS, the City has entered into an Interlocal Agreement for the Development of
the Edmonds Centre for the Arts (the "Interlocal Agreement ") with the City PFD, the Snohomish.
County PFD and Snohomish County, under which the City agrees to assist in the financing of the
improvements as set forth in that Interlocal Agreement; and
WHEREAS, the City of Edmonds, Washington (the "City "), is in need of acquiring and
renovating facilities for a performing arts theatre, creating on -site parking and constructing a
meeting room for the theatre, (the "Improvements ") - constituting the Regional Center or the Arts
Center the estimated cost of which is $16,000,000, and the City does not have available sufficient
funds to pay the cost; and
50351276.03
WHEREAS, the City Council deems it to be in the best interests of the City to borrow
money by the issuance of the Bonds authorized herein to pay costs of the Improvements; and
WHEREAS, Ambac Assurance Corporation, a Wisconsin- domiciled stock insurance
company ( "Ambac Assurance" or the 'Bond Insurer "), has made a commitment to issue an
insurance policy (the "Financial Guaranty Insurance Policy ") insuring the payment when due of
the principal of and interest on the Bonds as provided therein, and the City Council deems that
the purchase of the Financial Guaranty Insurance Policy is in the best interest of the City;
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 2002 is
$3,260,973,309, and the City has outstanding general indebtedness evidenced by limited tax
general obligation bonds and leases in the principal amount of $14,016,092 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 $8,600,000 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 $7,015,000.
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 $7,015,000 for general City purposes to provide the funds to pay costs of the
Improvements and to pay the costs of issuance and sale of the bonds (the "costs of issuance ").
50351276.03 -2-
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 3. Description of Bonds. The bonds shall be called Limited Tax General
Obligation Bonds, 2002, of the City (the "Bonds "); shall be in the aggregate principal amount of
$7,015,000; shall be dated November 1, 2002; 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 agent and co-
fiscal agent of the State of Washington) 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, 2003, to the maturity or
earlier redemption of the Bonds; and shall mature on December i in years and amounts and bear
interest at the rates per annum as follows:
Maturity
Interest
Years
Amounts
Rates
2003
$ 50,000
3.000%
2004
75,000
3.000
2005
80,000
3.000
2006
100,000
3.000
2007
115,000
3.250
2008
125,000
3.500
2009
150,000
3.625
2010
165,000
3.750
2011
185,000
4.000
2012
205,000
3.750
2013
230,000
3.850
2014
250,000
4.050
2015
275,000
4.150
2016
300,000
4.250
2017
330,000
4.350
2018
360,000
4.450
2019
390,000
4.600
2020
425,000
4.650
50351276.03 -3-
Maturity
Interest
Years
Amounts
Rates
2021
$465,000
4.700%
2022
505,000
4.750
2023
545,000
4.800
2024
590,000
4.875
2025
640,000
4.900
2026
460,000
4.900
The life of the capital facilities to be acquired or improved 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 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 The
Depository Trust Company, New York, New York ( "DTC "). The Bonds so registered shall be
held in fully immobilized form by DTC as depository in accordance with the provisions of a
Blanket Issuer Letter of Representations dated August 6, 1996, between the City and DTC (as it
may be amended from time to time, the "Letter of Representations "). Neither the City nor the
Bond Registrar shall have any responsibility or obligation to DTC participants or the persons for
50351276.03 -4-
whom 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 as long as any Bonds are held in fully immobilized form, DTC, its nominee 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
nominee 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.
50351276.03 -5-
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 15th 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. Notwithstanding the foregoing, for 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 6. Redemption Provisions and Open Market Purchase of Bonds. Bonds maturing
in the years 2003 through 2012, 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 the Bonds maturing on or after December 1, 2013, prior to their stated maturity dates
at any time on or after December 1, 2012, 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
denominations authorized by this ordinance in the aggregate principal amount remaining
unredeemed.
50351276.03 -6-
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 as long as the Bonds are registered in the name of
DTC or its nominee, selection of Bonds for redemption shall be in accordance with the Letter of
Representations.
Section 7. 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 New York,
New York, or its successor, to each NRMSIR or the MSRB and to such other persons, including
registered securities depositories, and with such additional information as the City
Administrative Services Director shall determine, but these additional mailings shall not be a
condition precedent to the redemption of Bonds. Notwithstanding the foregoing, for as long as
50351276.03 -7-
the Bonds are registered in the name of DTC or its nominee, notice of redemption shall be given
in accordance with the Letter of Representations.
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.
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.
In addition, the City expressly pledges to the payment of the principal of and interest on
the Bonds, the proceeds of the intergovernmental payments received from the Edmonds Public
Facilities District and from the Snohomish County Public Facilities District and the proceeds of
Real Estate Excise Taxes imposed by the City under RCW 82.41.010.
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 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.
50351276.03 -8-
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, 2002, described in the Bond Ordinance.
WASHINGTON STATE FISCAL AGENT
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 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
50351276.03 -9-
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 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 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 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 and other obligations not required to be included in such calculation)
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
50351276.03 _10-
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. 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, 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 "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 City shall include in 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
50351276.03 -11-
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.
If the Bonds are registered in the name of DTC or its nominee, notice of any defeasance
of Bonds shall be given to DTC in the manner prescribed in the Letter of Representations for
notices of redemption of Bonds.
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 Financial Guaranty Insurance
Policy, the Bonds shall be treated as remaining outstanding for all purposes, not defeased or
otherwise satisfied and shall not be considered paid by the City, and the covenants, agreements
and other obligations of the City to the registered owners of the Bonds shall continue to exist and
shall run to the benefit of the Bond Insurer, and the Bond Insurer shall be subrogated to the rights
of those registered owners.
Section 15. Bond Fund and Deposit of Bond Proceeds. There is created and established
in the office of the Administrative Services Director of the City a special fund designated as the
Limited Tax General Obligation Bond Fund, 2002 (the "Bond Fund "), 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.
There also shall be created and established in the office of the Administrative Services
Director a special fund designated as the 2002 PFD Project Fund (the "Construction Fund "). The
principal proceeds and premium, if any, received from the sale and delivery of the Bonds shall be
paid into the Construction Fund and used for the purposes specified in Section 2 of this
50351276.03 -12-
ordinance. Until needed to pay the costs of the Improvements 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 Fund and be spent for the purposes of
that fund.
Section 16. 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 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.
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 17. Preliminary Official Statement Deemed Final. The City Council has been
provided with copies of a preliminary official statement dated October 31, 2002 (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,
50351276.03 -13-
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 18. Undertaking to Provide Continuing Disclosure. To meet the requirements of
United States Securities and Exchange Commission ( "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 generally
accepted accounting principles applicable to governmental units, as such
principles may be changed from time to time and as permitted by State law,
50351276.03 -14-
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 value of the 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, 2002; 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.
(f) 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.
50351276.03 -15-
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
Administrative Services Director of the City (or such other officer of the City who
may in the future perform the duties of that office) 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 19. Bond Insurance. The City is authorized to purchase from the Bond Insurer
the Financial Guaranty 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. Any notice required to be given to the Bond Insurer shall be
sent by certified or registered mail to Ambac Assurance Corporation, One State Street Plaza,
New York, New York 10004.
50351276.03 -16-
While the Financial Guaranty Insurance Policy is in effect, the City or the Bond Registrar
shall furnish to the Bond Insurer (to the attention of the Surveillance Department, unless
otherwise indicated):
(a) As soon as practicable after the filing thereof, copies of any
financial statements, audits and annual reports of the City;
(b) copies of any notices given to the registered owners of the Bonds,
including, without limitation, notices of any redemption of or defeasance of
Bonds, and any certificate rendered pursuant to this ordinance relating to the
security for the Bonds;
(c) to the extent that the City has entered into a continuing disclosure
agreement with respect to the Bonds, the'Bond Insurer shall be included as a party
to be notified; and
(d) such additional information the Bond Insurer may reasonably
request.
The Bond Registrar shall notify the Bond Insurer (to the attention of the General Counsel
Office) of any failure of the City to provide relevant notices and certificates.
The City will permit the Bond Insurer to discuss the affairs, finances and accounts of the
City or any information the Bond Insurer may reasonably request regarding the security for the
Bonds with appropriate officers of the City. The Bond Registrar and the City will permit the
Bond Insurer to have access to and make copies of all books and records relating to the Bonds at
any reasonable time.
The Bond Insurer shall have the right to direct an accounting at the City's expense, and
the City's failure to comply with such direction within 30 days after receipt of written notice of
the direction from the Bond Insurer shall be deemed a default hereunder unless compliance
cannot occur within such period. In that event and only if an extension would not materially
adversely affect the interest of any registered owner of the Bonds, that 30 -day period will be
extended so long as compliance is begun within that period and diligently pursued.
50351276.03 -17- -
Section 20. Payment Procedures Under Bond Insurance. The Bond Insurer requires that
the following sections be included in this ordinance:
"As long as the bond insurance shall be in full force and effect, the
Obligor, the Trustee and any Paying Agent agree to comply with the following
provisions"
"(a) At least one (1) day prior to all Interest Payment Dates the Trustee
or Paying Agent [the Bond Registrar], if any, will determine whether there will be
sufficient funds in the Funds and Accounts to pay the principal of or interest on
the Obligations on such Interest Payment Date. If the Trustee or Paying Agent, if
any, determines that there will be insufficient funds in such Funds or Accounts,
the Trustee or Paying Agent, if any, shall so notify Ambac Assurance. Such
notice shall specify the amount of the anticipated deficiency, the Obligations to
which such deficiency is applicable and whether such Obligations will be
deficient as to principal or interest, or both. If the Trustee or Paying Agent, if
any, has not so notified Ambac Assurance at least one (1) day prior to an Interest
Payment Date, Ambac Assurance will make payments of principal or interest due
on the Obligations on or before the first (1st) day next following the date on
which Ambac Assurance shall have received notice of nonpayment from the
Trustee or Paying Agent, if any.
"(b) the Trustee or Paying Agent, if any, shall, after giving notice to
Ambac Assurance as provided in (a) above, make available to Ambac Assurance
and, at Ambac Assurance's direction, to The Bank of New York, as insurance
trustee for Ambac Assurance or any successor insurance trustee (the "Insurance
Trustee "), the registration books of the Obligor maintained by the Trustee or
Paying Agent, if any, and all records relating to the Funds and Accounts
maintained under this ordinance.
"(c) the Trustee or Paying Agent, if any, shall provide Ambac
Assurance and the Insurance Trustee with a list of registered owners of
Obligations entitled to receive principal or interest payments from Ambac
Assurance under the terms of the Financial Guaranty Insurance Policy, and shall
make arrangements with the Insurance Trustee (i) to mail checks or drafts to the
registered owners of Obligations entitled to receive full or partial interest
payments from Ambac Assurance and (ii) to pay principal upon Obligations
surrendered to the Insurance Trustee by the registered owners of Obligations
entitled to receive full or partial principal payments from Ambac Assurance.
"(d) the Trustee or Paying Agent, if any, shall, at the time it provides
notice to Ambac Assurance pursuant to (a) above, notify registered owners of
Obligations entitled to receive the payment of principal or interest thereon from
Ambac Assurance (i) as to the fact of such entitlement, (ii) that Ambac Assurance
will remit to them all or a part of the interest payments next coming due upon
proof of Bondholder entitlement to interest payments and delivery to the
Insurance Trustee, in form satisfactory to the Insurance Trustee, of an appropriate
50351276.03 -18-
assignment of the registered owner's right to payment, (iii) that should they be
entitled to receive full payment of principal from Ambac Assurance, they must
surrender their Obligations (along with an appropriate instrument of assignment in
form satisfactory to the Insurance Trustee to permit ownership of such
Obligations to be registered in the name of Ambac Assurance) for payment to the
Insurance Trustee, and not the Trustee or Paying Agent, if any, and (iv) that
should they be entitled to receive partial payment of principal from Ambac
Assurance, they must first surrender their Obligations for payment thereon first to
the Trustee or Paying Agent, if any, who shall note on such Obligations the
portion of the principal paid by the Trustee or Paying Agent, if any, and then,
along with an appropriate instrument of assignment in form satisfactory to the
Insurance Trustee, to the Insurance Trustee, which will then pay the unpaid
portion of principal.
"(e) in the event that the Trustee or Paying Agent, if any, has notice
that any payment of principal of or interest on a Bond which has become Due for
Payment and which is made to a Bondholder by or on behalf of the Obligor has
been deemed a preferential transfer and theretofore recovered from its registered
owner pursuant to the United States Bankruptcy Code by a trustee in bankruptcy
in accordance with the final, nonappealable order of a court having competent
jurisdiction, the Trustee or Paying Agent, if any, shall, at the time Ambac
Assurance is notified pursuant to (a) above, notify all registered owners that in the
event that any registered owner's payment is so recovered, such registered owner
will be entitled to payment from Ambac Assurance to the extent of such recovery
if sufficient funds are not otherwise available, and the Trustee or Paying Agent, if
any, shall furnish to Ambac Assurance its records evidencing the payments of
principal of and interest on the Obligations which have been made by the Trustee
or Paying Agent, if any, and subsequently recovered from registered owners and
the dates on which such payments were made.
"(f) in addition to those rights granted Ambac Assurance under this
ordinance, Ambac Assurance shall, to the extent it makes payment of principal of
or interest on Obligations, become subrogated to the rights of the recipients of
such payments in accordance with the terms of the Financial Guaranty Insurance
Policy, and to evidence such subrogation (i) in the case of subrogation as to
claims for past due interest, the Trustee or Paying Agent, if any, shall note Ambac
Assurance's rights as subrogee on the registration books of the Obligor maintained
by the Trustee or Paying Agent, if any, upon receipt from Ambac Assurance of
proof of the payment of interest thereon to the registered owners of the
Obligations, and (ii) in the case of subrogation as to claims for past due principal,
the Trustee or Paying Agent, if any, shall note Ambac Assurance's rights as
subrogee on the registration books of the Obligor maintained by the Trustee or
Paying Agent, if any, upon surrender of the Obligations by the registered owners
thereof together with the proof of the payment of principal thereof."
Section 21. Parties Interested Herein. To the extent that this ordinance confers upon or
gives or grants to the Bond Insurer any right, remedy or claim under or by reason of this
50351276.03 -19-
ordinance, the Bond Insurer is explicitly recognized as being a third -party beneficiary hereunder
and may enforce any such right, remedy or claim conferred, given or granted hereunder.
Nothing expressed or implied in this ordinance is intended or shall be construed to confer upon,
or to give or grant to, any person or entity, other than the City, the Bond Insurer and the
registered owners of the Bonds, any right, remedy or claim under or by reason of this ordinance
or any covenant, condition or stipulation hereof, and all covenants, stipulations, promises and
agreements in this ordinance contained by and on behalf of the City shall be for the sole and
exclusive benefit of the City, the Bond Insurer and the registered owners of the Bonds.
Notwithstanding any other provision of this ordinance, the City shall notify the Bond
Insurer immediately if at any time there are insufficient funds to make any payments of principal
and/or interest as required and immediately upon the occurrence of any event of default
hereunder. Anything in this ordinance to the contrary notwithstanding, upon the occurrence and
continuance of an event of default, the Bond Insurer shall be entitled to control and direct the
enforcement of all rights and remedies granted to the Bond owners for the benefit of the Bond
owners pursuant to state law.
Any provision of this ordinance expressly recognizing or granting rights in or to the Bond
Insurer may not be amended in any manner which affects the rights of the Bond Insurer
hereunder without the prior written consent of the Bond Insurer. Unless otherwise provided in
this section, the Bond Insurer's consent shall be required, in addition to Bond owner consent,
when required, for the following purposes: (i) execution and delivery of any supplemental
ordinance, and (ii) initiation or approval of any other action which requires Bond owner consent.
Any reorganization or liquidation plan with respect to the City must be acceptable to the
Bond Insurer. In the event of any reorganization or liquidation, the Bond Insurer shall have the
right to vote on behalf of all Bond owners who hold Ambac Assurance- insured bonds absent a
50351276.03 -20-
default by the Bond Insurer under the applicable Financial Guaranty Insurance Policy insuring
such bonds.
Section 22. 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 special open public meeting thereof, of which due notice was given as provided
by law, this 7h day of November, 2002.
ATTEST:
City Clerk
APPROVED AS TO FORM:
.FOSTER PEPPER & SHEFELMAN PLLC
Bond Counsel
Filed with the City Clerk: 11/07/02
Passed by the City Council: 11/07/02
Published: 11/12/02
Effective Date: 11/17/02
50351276.03 -21-
SUMMARY OF ORDINANCE NO. 3425
of the City of Edmonds, Washington
On the 7t" day of November, 2002, the City Council of the City of Edmonds,
passed Ordinance No. 3425. 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 $7,015,000 par
value of Limited Tax General Obligation Bonds, 2002, of the City for
general City purposes to provide funds with which to pay costs of acquiring
and renovating facilities for a performing arts theatre, creating on -site
parking, and constructing a meeting room for the theatre; fixing the date,
form, maturities, interest rates, terms and covenants of the bonds;
establishing a bond redemption fund and a construction fund; 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 8t" day of November, 2002.
CITY CLERK, SANDRA S. CHASE
CERTIFICATION
I, the undersigned, City Clerk of the City of Edmonds, Washington (the "City "), hereby
certify as follows:
1. The attached copy of Ordinance No. 3425 (the "Ordinance ") is a full, true and correct
copy of an ordinance duly passed at a special meeting of the City Council of the City held at the
regular meeting place thereof on November 7, 2002, as that ordinance appears on the minute
book of the City; and the Ordinance will be in full force and effect five days after the publication
of its summary in the City's official newspaper.
2. Written notice specifying the time and place of the special meeting and noting the
business to be transacted was given to all members of the City Council by mail or by personal
delivery at least 24 hours prior to the special meeting, a true and complete copy of which notice
is attached hereto as Appendix 1;
3. No local radio or television stations, or newspapers of general circulation, have on
file with the City a written request to be notified of any special meetings; however, written notice
of the special meeting was given to certain media for which such notice customarily is given;
4. A quorum of the members of the City Council was present throughout the meeting
and a majority of those members present voted in the proper manner for the passage of the
Ordinance.
IN WITNESS WHEREOF, I have hereunto set my hand this day of November,
2002.
CITY OF EDMONDS, WASHINGTON
SANDRA S. CHASE, City Clerk
50351276.03
Funding Indebtedness in Counties, Cities and Towns
R
39.52.010 Issuance of funding bonds authorized.
Any county, city, or town in the state of Washington which
now has or may hereafter have an outstanding indebtedness
evidenced by warrants or bonds, including warrants or bonds
of any county, city, or town which are special fund obliga-
tions of and constitute a lien upon the waterworks or other
public utilities of such county, city, or town, and are payable
only from the income or funds derived or to be derived
iherefrom, whether issued originally within the limitations of
the Constitution of this state, or of any law thereof, or
whether such outstanding indebtedness has been or may
':`hereafter be validated or legalized in the manner prescribed
by law, may, by its corporate authorities, provide by ordi-
=nance or resolution for the issuance of funding bonds. with
-which to take up and cancel such outstanding indebtedness
in the manner hereinafter described, said bonds to constitute
,-general obligations of such county, city, or town: PROVID-
ED, That special fund obligations payable only from the
,income funds of the public utility, shall not be refunded by
the issuance of general municipal bonds where voter approv-
alis required before general municipal bonds may be issued
for such public utility purposes, unless such general munici-
pal €bonds shall have been previously authorized. Nothing in
this chapter shall be so construed as to prevent any such
county,` city; or town from funding its indebtedness as now
provided by law. [1995 2nd sp.s. c 17 § 6; 1984 c 186 §
36 ;-1917 c 145 § 1; 1895 c 170 § 1; RRS § 5617.]
Severability -1995 2nd sp.s. c 17: See RCW 43.99K.900.
d,
" `.Purpose -1984 c 186: See note following RCW 39.46.110.
59:52.015 Validation of prior bond issues. That all
1 eretofore voted or issued, and which may have been
ly hereafter be issued by any county, city or town, for
if the purposes authorized by the preceding section as
,y ,amended, including general fund bonds issued for the
use of refunding special utility fund bonds or warrants,
be validated and have the same force and effect as
;t `said�section. had been in full force and effect at the
said'l onds were either authorized or issued. [1917 c
'?2; RRS § 5618.1
39:52.020 Limitations on issuance of bonds. No
'yssued under this chapter shall be issued for a longer
than twenty years. Nothing in this chapter shall be
It authorize the issuing of any funding bonds which
`any constitutional or statutory limitations of indebt-
t..
Such bonds shall be issued and sold in accordance
pters 39.46 and 39.53 RCW, exclusive of RCW
'11995 2nd sp.s. c 17 § 7; 1984 c 186 § 37; 1983
1970 ex.s. c 56 § 60; 1969 ex.s. c 232 § 31;
2 ' RkS § 5619.]
biUtY=1995 2nd sp.s. a 17: See RCW 43.99K.900.
1984 a 186: See note following RCW 39.46.110.
�1`construction— Severability -1983 a 167: See RCW
ote following.
1970 ex.s. c 56: 'Because market conditions are such that
gencies; state colleges and universities, and the political
u it . corporations and quasi municipal corporations of
g.itincreasingly difficult and, in some cases, impossible
?s;and all other obligations, at the maximum permissible
able on such bonds and obligations, it is the purpose of
Adopted by Reference
Ordinance on
City Clerk
39.52.010
on such bonds and obligations." (1970 ex.s. c 56 § 1; 1969 ex.s. c 232 §
1.1
Validation — Saving -1969 ex.s. c 232: "All bonds, the issuance of
which was authorized or ratified at a general or special election held within
the issuing jurisdiction prior to the effective date of this amendatory act or
the proposition fo'r the issuance of which will be submitted at such an
election pursuant to action of the legislative authority of the issuer taken
prior to the effective date of this amendatory act, may be sold and issued
with an interest rate or rates greater than any interest rate restriction
contained in the ballot proposition or ordinance or resolution relating to
such authorization or ratification if such bonds are sold and issued with an
interest rate or rates not greater than those permitted by the applicable
provision of this amendatory act." [1969 ex.s. c 232 § 94.]
Severability-1969 ex.s. c 232: "If a court of competent jurisdiction
shall adjudge to be invalid or unconstitutional any clause, sentence,
paragraph, section, or part of this 1969 amendatory act, such judgment or
decree shall not affect, impair or nullify the remainder of this act, but the
effect thereof shall be confined to the clause, sentence, paragraph, section,
or part of this act so adjudged to be invalid or unconstitutional." [1969
ex.s. e 232 § 95.1
Bonds, form, terms of sale, payment, etc.: Chapter 39.44 RCW.
39.52.035 Tax levy— Purpose. The corporate
authorities of any such county, city or town shall provide
annually by ordinance or resolution for the levy and exten-
sion on the tax rolls of such county, city or town, and for the
collection thereof, of a direct annual tax in addition to all
other county, city or town taxes to be levied according to
law, which shall be sufficient to meet the interest on all of
said bonds promptly as the same matures, and also sufficient
to fully pay each series of bonds as the same matures:
PROVIDED, That such ordinance or resolution shall not be
repealed until the levy therein provided for shall be fully
paid, or the bonds both principal and interest shall be paid or
canceled. [1895 c 170 § 4; RRS § 5621. Formerly RCW
39.52.030, part.]
39.52.050 "Corporate authorities" defined. The
words "corporate authorities ", used in this chapter, shall be
held to mean the county legislative authority, or the council
or commission of the city or town. [1984 c 186 § 38; 1895
c 170 § 6; RRS § 5623.]
Purpose -1984 c 186: See note following RCW 39.46.110.
Chapter 39.53
REFUNDING BOND ACT
Sections
39.53.010 Definitions.
39.53.020 Issuance authorized— Purposes -- Saving to public body,
criteria.
39.53.030 Refunding bonds may be exchanged for bonds to be refund-
ed or sold.
39.53.040 What bonds may be refunded— Refunding plans —
Redemption of refunding bonds.
39.53.045 Bonds payable from special assessments —Not subject to
refunding.
39.53.050 Refunding bonds, principal amount — Disposition of reserves
held to secure the bonds to be refunded.
39.53.060 Application of proceeds of sale of refunding bonds and
other funds — Investment in government obligations —
Incidental expenses.
39.53.070 Application of proceeds of sale of refunding bonds and
other funds -- Contracts for safekeeping and applica-
tion —Use to pay and secure refunding bonds — Pledge
of revenues —Duty to provide sufficient money to ac-
complish refunding.
[Title 39 RCW —page 67]
1 '
Chapter 39.53 Title 39 RCW: Public Contracts and Indebtedness
39.53.080 Pledge of revenues to payment of refunding bonds when
amounts sufficient to pay revenue bonds to be refunded
are irrevocably set aside.
39.53.090 Annual maturities of general obligation refunding bonds
issued to refund voted general obligation bonds.
39.53.100 Use of deposit moneys and investments in computing in-
debtedness.
39.53.110 Refunding and other bonds may be issued in combination.
39.53.120 Refunding bonds to be issued in accordance with laws appli-
cable to type of bonds to be refunded.
39.53.130 Amendment of power contracts pursuant to refunding of cer-
tain bond issues.
39.53.140 Issuance of general obligation refunding bonds to refund
general obligation or revenue bonds.
39.53.900 Short title.
39.53.910 Additional authority — Effect as to other laws.
39.53.920 Severability-1965 ex.s. c 138.
39.53.921 Severability -1977 ex.s. c 262.
39.53.010 Definitions. Except where the context
otherwise requires, the definitions in this section apply
throughout this chapter:
(1) "Bond" means any revenue bond or general obliga-
tion bond.
(2) "General obligation bond" means any bond, note,
warrant, certificate of indebtedness, or other obligation of a
public body which constitutes an indebtedness within the
meaning of the constitutional debt limitation.
(3) "Governing body" means the council, commission,
board of commissioners, board of directors, board of
trustees, board of regents, or other legislative body of the
public body designated herein in which the legislative
powers of the public body are vested. With respect to the
state, "governing body" means the state finance committee.
(4) "Government obligations" means any of the follow-
ing: (a) Direct obligations of, or obligations the principal of
and interest on which are unconditionally guaranteed by the
United States of America and bank certificates of deposit
secured by such obligations; (b) bonds, debentures, notes,
participation certificates, or other obligations issued by the
banks for cooperatives, the federal intermediate credit bank,
the federal home loan bank system, the export-import bank
of the United States, federal land banks, or the federal
national mortgage association; (c) public housing bonds and
project notes fully secured by contracts with the United
States; and (d) obligations of financial institutions insured by
the federal deposit insurance corporation or the federal
savings and loan insurance corporation, to the extent insured
or to the extent guaranteed as permitted under any other
provision of state law.
(5) "Issuer" means the public body issuing any bond or
bonds.
(6) "Ordinance" means an ordinance of a city or town,
or ordinance, resolution or other instrument by which the
governing body of the public body exercising any power
under this chapter takes formal action and adopts legislative
provisions and matters of some permanency.
(7) "Public body" means the state of Washington, its
agencies, institutions, political subdivisions, and municipal
and quasi - municipal corporations now or hereafter existing
under the laws of the state of Washington.
(8) "Refunding bonds" means bonds issued for the
purpose of paying the principal of or redemption premiums
or interest on any outstanding bonds of the issuer, its
predecessor, or a related public body.
[Title 39 RCW —page 681
(9) "Refunding plan" means the plan adopted
ordinance of a public body to issue refunding bon
redeem the bonds to be refunded.
(10) "Revenue bond" means any bond, note, w
certificate of indebtedness, or other obligation f
payment of money that is payable from designated re)
special assessments, or a special fund but excludil
obligation constituting an indebtedness within the In
of the constitutional debt limitation. [1999 c 230 § 1
c 186 § 68; 1973 lst ex.s. c 25 § 1; 1965 ex.s, c 13E
body opissuetrefunding bondspursuantcto3his act eis additional
existing authority to issue such bonds and nothing in this act shall
the issuance of such bonds pursuant to any other law, and this act s
be construed to amend any existing law authorizing the issue
refunding bonds by a public body." [1999 c 230 § 13.]
Severability -1999 c 230: "If any provision of this ac
application to any person or circumstance is held invalid, the remai
the act or the application of the provision to other persons or circuin
is not affected." [1999 c 230 § 14.]
Purpose -1984 c 186: See note following RCW 39.46.110.
39.53.020 Issuance authorized—Purposes—S. I
uthorized — Purposes — S.I
to public body, criteria. The governing body of any p
body may by ordinance provide for the issuance of reful
bonds without an election (1) in order to pay or discharl
or any part of an outstanding series or issue of bo
including any redemption premiums or interest thereo
arrears or about to become due, and for which suffic
funds are not available, (2) when necessary or in the bes
terest of the public body to modify debt service or res
requirements, sources of payment, covenants, or other it
of the bonds to be refunded, or (3) in order to effe
saving to the public body. To determine whether or n
saving will be effected, consideration shall be given to
interest to fixed maturities of the refunding bonds and
bonds to be refunded, the costs of issuance of the refun(
bonds, including any sale discount, the redemption pre
ums, if any, to be paid, and the known earned income f
the investment of the refunding bond proceeds Pend
redemption of the bonds to be refunded. [1999 c 2301
1977 ex.s. c 262 § 1; 1974 ex.s. c 111 § 2; 1965 ex.s. c
§ 3•]
Application — Construction —Severability -1999 c 230: Seen
following RCW 39.53.010.
Severability -1974 ex.s. c 111: See note following RCW 39.421
39.53.030 Refunding bonds may be exchanged
bonds to be refunded or sold. Any refunding bonds is:
may be delivered in exchange for the bonds to be refur
or may be sold in such manner and at such price as the l
erning body may in its discretion determine advisable. [1
c 230 § 3; 1973 1st ex.s. c 25 § 2; 1965 ex.s. c 138 § I
Application — Construction - Severability -1999 c 230: Seer
following RCW 39.53.010.
39.53.040 What bonds may be refundec
Refunding plans— Redemption of refunding bon
Bonds may be refunded under this chapter or under_:
other law of this state which authorizes the issuance
refunding bonds. In any refunding plan under this chaf,
the governing body shall provide irrevocably in the or
nance authorizing the issuance of the advance refundi
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ve
Refunding Bond Act
bonds for the redemption or payment of the bonds to be
refunded.
The ordinance authorizing the issuance of refunding
bonds under this chapter may contain such provisions for the
redemption of the refunding bonds prior to maturity and for
payment of a premium upon such redemption as the govern-
ing body in its discretion may determine advisable. [1999
c 230 § 4; 1977 ex.s. c 262 § 2; 1973 1st ex.s. c 25 § 3;
1965 ex.s. c 138 § 5.1
Application — Construction— Severability -1999 c 230: See notes
following RCW 39.53.010.
39.53.045 Bonds payable from special assessments —
Not subject to refunding. Bonds payable solely from
special assessments or special assessments and a guaranty
fund issued on or prior to June 7, 1984, shall not be subject
to refunding under this chapter. [1984 c 186 § 69.1
Purpose -1984 c 186: See note following RCW 39.46.110.
39.53.050 Refunding bonds, principal amount
Disposition of reserves held to secure the bonds to be
refunded. The principal amount of refunding bonds may
exceed the principal amount of the bonds to be refunded by
an amount deemed reasonably required to effect such
.refunding. The principal amount of the refunding bonds
may be less than or the same as the principal amount of the
bonds to be refunded so long as provision is duly and
sufficiently made for the retirement or redemption of such
bonds to be refunded. Any reserves held to secure the bonds
to be refunded, or other available money, may be used to
accomplish the refunding in accordance with the refunding
plan. Reserves not so used shall be pledged as security for
the.refunding bonds to the extent the reserves, if any, are
required. The balance of any such reserves may be used for
any lawful purpose. [1999 c 230 § 5; 1983 1st ex.s. c 69 §
l; 1977 ex.s. c 262 § 3; 1974 ex.s. c 11.1 § 3; 1965 ex.s. c
138 § 6.]
Application — Construction —Severability -1999 c 230: See notes
following RCW 39.53.010.
Severability -1974 ex.s. c 111: See note following RCW 39.42.080.
39.53.060 Application of proceeds of sale of refund-
ing bonds and other funds — Investment in government
obligations — Incidental expenses. Prior to the application
of the proceeds derived from the sale of refunding bonds to
the Proposes for which such bonds have been issued, such
Proceeds, together with any other funds the governing body
may set aside for the payment of the bonds to be refunded,
tray be invested and reinvested only in government obliga-
tions maturing or having guaranteed redemption prices at the
Option of the holder at such time or times as may be
required to provide funds sufficient to pay principal, interest
and redemption premiums, if any, in accordance with the
refunding plan. 'To the extent incidental expenses have been
eVitabzed, such bond proceeds may be used to defray such
expenses. 11999 c 230 § 6; 1973 1st ex.s. c 25 § 4; 1965
MS. c 138 § 71 .
Application__C,, ruction —Severability -1999 c 230: See notes
ft'"t RC' 39.53.010.
�f►ZEa.I
39.53.040
39.53.070 Application of proceeds of sale of refund-
ing bonds and other funds — Contracts for safekeeping
and application —Use to pay and secure refunding
bonds — Pledge of revenues —Duty to provide sufficient
money to accomplish refunding. The governing body may
contract with respect to the safekeeping and application of
the refunding bond proceeds and other funds included
therewith and the income therefrom including the right to
appoint a trustee which may be any trust company or state
or national bank having powers of a trust company within or
without the state of Washington. The governing body may
provide in the refunding plan that until such moneys are
required to redeem or retire the bonds to be refunded, the
refunding bond proceeds and other funds, and the income
therefrom shall be used to pay and secure the payment of the
principal of and interest on the refunding bonds. The
governing body may additionally pledge for the payment of
revenue refunding bonds any revenues which might legally
be pledged for the payment of revenue bonds of the issuer
of the type to be refunded. Provisions must be made by the
governing body for moneys sufficient in amount to accom-
plish the refunding as scheduled. [1999 c 230 § 7; 1973 1st
ex.s. c 25 § 5; 1965 ex.s. c 138 § 8.]
Application — Construction — Severability -1999 c 230: See notes
following RCW 39.53.010.
39.53.080 Pledge of revenues to payment of refund-
ing bonds when amounts sufficient to pay revenue bonds
to be refunded are irrevocably set aside. When a public
body has irrevocably set aside for and pledged to the
payment of revenue bonds to be refunded refunding bond
proceeds and other moneys in amounts which together with
known earned income from the investment thereof are
sufficient in amount to pay the principal of and interest and
any redemption premiums on such revenue bonds as the
same become due and to accomplish the refunding as
scheduled, the governing body may provide that the refund-
ing revenue bonds shall be payable from any source which,
either at the time of the issuance of the refunding bonds or
the revenue bonds to be refunded, might legally be or have
been pledged for the payment of the revenue bonds to be
refunded to the extent it may legally do so, notwithstanding
the pledge of such revenues for the payment of the revenue
bonds to be refunded. [1999 c 230 § 8; 1965 ex.s. c 138 §
9.]
Application — Construction —Severability -1999 c 230: See notes
following RCW 39.53.010.
39.53.090 Annual maturities of general obligation
refunding bonds issued to refund voted general obligation
bonds. The various annual maturities of general obligation
refunding bonds issued to refund voted general obligation
bonds shall not extend over a longer period of time than the
bonds to be refunded. Such maturities may be changed in
amount or shortened in term if the estimated respective
annual principal and interest requirements of the refunding
bonds, computed upon the anticipated effective interest rate
the governing body shall in its discretion determine will be
borne by such bonds, will not exceed the respective annual
principal and interest requirements of the bonds to be
refunded, except the issuer may increase the principal
[Title 39 RCW —page 69]
39.53.090 Title 39 RCW:
Public Contracts and Indebtedness
amount of annual maturities for the purpose of rounding out
maturities to the nearest five thousand dollars. 11999 c 230
§ 9; 1965 ex.s. c 138 § 10.]
Application— Construction — Severability -1999 c 230:
following RCW 39.53.010. See notes
39.53.100 Use of deposit moneys and investments in
computing indebtedness. In computing indebtedness for
the purpose of any constitutional or statutory debt limitation
there shall be deducted from the amount of outstanding
indebtedness the amounts of money and investments credited
to or on deposit for general obligation bond retirement.
[1973 1st ex.s. c 25 § 6; 1965 ex.s. c 138 § 11.]
39.53.110 Refunding and other bonds may be
issued in combination. Refunding bonds and bonds for any
other purpose or purposes authorized may be issued separate-
ly or issued in combination in one or more series or issues
by the same issuer. 11999 c 230 § 10; 1965 ex.s. c 138 §
12.]
Application — Construction — Severability -1999 c 230: See notes
following RCW 39.53.010.
39.53.120 Refunding bonds to be issued in accor-
dance with laws applicable to type of bonds to be refund-
ed. Except as specifically provided in this chapter, refund-
ing bonds issued under this chapter shall be issued in
accordance with the provisions of law applicable to the type
of bonds of the issuer to be refunded, at the time of the
issuance of either the refunding bonds or the bonds to be
refunded. [1999 c 230 § 11; 1965 ex.s. c 138'§ 13.]
Application— Construction — Severability -1999 c 230: See notes
following RCW 39.53.010.
39.53.130 Amendment of power contracts pursuant
to refunding of certain bond issues. If bonds are to be
issued under this chapter for refunding of any bonds issued
specifically to finance any electric power and energy project
or facility and there are contracts in existence for the sale of
electric power and energy generated by such project or
facility wherein the cost of power to a purchaser specifically
includes a portion of the debt service on the bonds to be
refunded, such power contracts shall be amended to reflect
in each year during the remaining terms of such contracts
that portion of the savings to be realized from such refund-
ing during each such year equal to the percentage of power
output from such project or facility purchased by the
purchaser under such power contracts. Nothing in this
chapter shall be construed to alter, modify or change any
such power contracts without the mutual agreement of the
parties thereto. [1965 ex.s. c 138 § 15.]
39.53,140 Issuance of general obligation refunding
bonds to refund general obligation or revenue bonds.
Any public body may issue general obligation refunding
bonds to refund any general obligation or revenue bonds of
such issuer or its agencies or instrumentalities. The payment
of general obligation refunding bonds may be additionally
secured by a pledge of the revenues pledged to the payment
of the revenue bonds to be refunded.
[Title 39 RCW —page 701
If the payment of revenue bonds to be refundei
general obligation bonds of the state is secured by (1)
collected by the state as license fees for motor vehicle;
(2) excise taxes collected by the state on the sale, distr.
tion or use of motor vehicle fuel, or (3) interest ort
permanent school fund, then the state shall also pledge to
payment of such refunding bonds the same fees, ex(
taxes, or interest that were pledged to the payment of.
revenue bonds to be refunded.
Any public body may issue revenue refunding bond,
refund any general obligation of such issuer or its agenc
or instrumentalities if the bonds to be refunded were isst
for purposes for which those revenue -refunding bonds co,
be issued. f 199 c 230 § 12; 1974 ex.s. c 111 § 4; 1973
ex.s. c 25 § 7.]
Application — Construction — Severability -1999 c 230: See no
following RCW 39.53.010.
Severability -1974 ex.s. c 111: See note following RCW
39. 53.900 Short title. This chapter shall be known
the 'Refunding Bond Act." [1965 ex.s. c 138 § 1.1
39.53.910 Additional authority — Effect as to oth
laws. The authority of a public body to issue refundi
bonds pursuant to this chapter is additional to any existii
authority to issue such bonds and nothing in this chapt
shall prevent the issuance of such bonds pursuant to ar.
other law, and this chapter shall not be construed to amen
any existing law authorizing the issuance of refunding bone
by a public body. [1965 ex.s. c 138 § 14.]
39.53.920 Severability -1965 ex.s. c 138. If a
Provision of this chapter, or its application to any person
circumstance is held invalid, the remainder of the chapter,
the application of the provision to other persons or c
cumstances is not affected. [1965 ex.s. c 138 § 16.1
39.53.921 Severability -1977 ex.s. c 262. If al
Provision of this 1977 amendatory act, or its application
any person or circumstance is held invalid, the remainder i
the act, or the application of the provision to other persol
or circumstances is not affected. [1977 ex.s. c 262 § 4.1
Chapter 39.56
WARRANTS
Sections
39.56.020
Rate on municipal warrants.
39.56.030
Issuing officer to fix rate.
39.56.040
Cancellation of municipal warrants.
39.56.050
Municipal corporations authorized to establish line of credit
for payment of warrants— Interest.
Interest on judgments: RCW 4.56.110.
Usurious rates of interest: Chapter 19.52 RCW.
39. 56.020 Rate on municipal warrants. All cot
city, town and school warrants, and all warrants or c
evidences of indebtedness, drawn upon or payable from
public funds, shall bear interest at a rate or rates as au
rized by the issuing authority, [1970 ex.s. c 56 § 106; 1
c 80 § 4; RRS § 7302. Prior: 1895 c 136 § 3.]
39.
39.5
39.5
39.5.
39.5!
` Local Improvements— Filling and Draining Lowlands — Waterways 35.56.230
utting upon it shall ever be.leased unless an equal frontage
the abutting property immediately adjoining it is leased at
e same time for the same period to the same individual or
ocern. [1965 c 7 § 35.56.230. Prior: 1913 c 16 § 17,
rt; RRS § 9465, part.]
35.56.240 Waterways constructed — Acquisition of
►utting property. While acquiring the rights of way for
ch canals or waterways or at any time thereafter such city
ay acquire for its own use and public use by purchase, gift,
mdemnation or otherwise, and pay therefor by any lawful
eans including but not restricted to payment out of the
irrent expense fund of such city or by bonding the city or
i pledging revenues to be derived from rents and issues
erefrom, lands abutting upon the shore lines or right <of -
ay of such canals or waterways to a distance, depth or
idth of not more than three hundred feet back from the
inks or shore lines of such canals or waterways on either
3e or both sides thereof, or not more than three hundred
seal feet back from and abutting on the outer lines of such
;hts -of -way on either side or both sides of such rights -of-
ay, and such area of such abutting lands as the council or
)mmission may deem necessary for its use for public
)cks, bridges, wharves, streets and other conveniences of
tvigation and commerce and for its own use and benefit
=rally. [1965 c 7 § 35.56.240. Prior: 1913 c 16 § 18,
irt; RRS § 9466, part.]
35.56.250 Waterways — Abutting city owned lands —
ease of. If the city is not using the abutting lands so
squired it may lease any parcels thereof as may be deemed
),r the best interest and convenience of navigation, com-
erce and the public interest and welfare to private individu-
s or concerns for terms not exceeding thirty years each at
tch annual rate or rental as the city council or commission
i such city may deem just, proper and fair, for the purpose
F erecting wharves for wholesale and retail warehouses and
)r general commercial purposes and manufacturing sites,
at the said city shall never convey or part with title to the
)utting lands above mentioned and so acquired nor with the
ntrol other than in the manner herein specified. Any lease
r leases granted by the city on such abutting lands shall
'ver be transferred or assigned without the consent of the
tty council or commission having been first obtained.
i. A city shall never lease to any individual or concern
tore than four hundred lineal feet of canal or waterway
'outage of said land and no individual or concern shall ever
old or occupy by lease, sublease, or otherwise more than
ie said four hundred lineal feet of said frontage: PROVID-
D, That any individual or concern may acquire by lease or
tblease whatever additional frontage of such abutting land
iay be in the judgment of the city council or commission
ecessary for the use of such individual or concern, upon
etition presented to the city council or commission therefor
igned by not less than five hundred resident freeholders of
6ch city. [1965 c 7 § 35.56.250. Prior: 1913 c 16 § 18,
'art; RRS § 9466, part.]
3 5.56.260 Waterways— Abutting lands— Lessee
,t lease shoreline property.. At the time that the city
r
rases to any individual or concern any of the land abutting
:
on the area between the shore lines and the dock lines the
same individual or concern must likewise for the same
period of time lease all of the area between the shore line
and dock line of such canal or waterway lying contiguous to
and immediately in front of the abutting land so leased.
[1965 c 7 § 35.56.260. Prior: 1913 c 16 § 18, part; RRS §
9466, part.]
35.56.270 Work by day labor. When a city under-
takes any improvement authorized by this chapter and the
expenditures required exceed the sum of five hundred
dollars, it shall be done by contract and shall be let to the
lowest responsible bidder, after due notice, under such
regulation as may be prescribed by ordinance: PROVIDED,
That the city council or commission may reject all bids
presented and readvertise, or, if in the judgment of the city
council or commission the work can be performed, or
supplies or materials furnished by the city independent of
contract, cheaper than under the bid submitted, it may after
having so advertised and examined the bids, cause the work
to be performed or supplies or materials to be furnished
independent of contract. This section shall be construed as
a concurrent and cumulative power conferred on cities and
shall not be construed as in any wise repealing or affecting
any law now in force relating to the performing, execution
and construction of public works. [1965 c 7 § 35.56.270.
Prior: 1913 c 16 § 20; RRS § 9468.]
35.56.280 Reassessments. If any assessment is found
to be invalid for any cause or if it is set aside for any reason
in judicial proceeding, a reassessment may be made and all
laws then in force relative to the reassessment of local
assessments, for street or other improvements, shall, as far
as practical, be applicable hereto. [1965 c .7 § 35.56.280.
Prior: 1913 c 16 § 16; RRS § 9464.]
Local improvements, assessments and reassessments: Chapter 35.44 RCW.
35.56.290 Provisions of chapter not exclusive. The
provisions of this chapter shall not be construed as repealing
or in any wise affecting other existing laws relative to the
making of any such improvements but shall be considered as
concurrent therewith. [1965 c 7 § 35.56.290. Prior: 1929
c 63 § 5; 1913 c 16 § 22; RRS § 9470.]
Chapter 35.57
PUBLIC FACILITIES DISTRICTS
Sections
35.57.010 Creation —Board of directors — Corporate powers.
35.57.020 Regional centers --- Charges and fees — Powers.
35.57.030 General obligation bonds.
35.57.040 Authorized charges, fees, and taxes — Gifts.
35.57.050 Travel, expense reimbursement policy— Required.
35.57.060 Expenditure of funds — Purposes.
35.57.070 Service provider agreements.
35.57.080 Purchases and sales — Procedures.
35.57.090 Revenue bonds — Limitations.
35.57.100 Tax on admissions.
35.57.110 Tax on vehicle parking charges.
35.57.900 Severability -1999 c 165.
Ed.) [Title 35 RCW —page 1871
35:57.010
Title 35 RCW: Cities and Towns
35.57.010 Creation —Board of directors— Corporate
powers. (1)(a) The legislative authority of any town or city
located in a county with a population of less than one
million may create a public facilities district.
(b) The legislative authorities of any contiguous group
of towns or cities located in a county or counties each with
a population of less than one million may enter an agreement
under chapter 3934 RCW for the creation and joint opera-
tion of a public facilities district.
(c) The legislative authority of any town or city, or any
contiguous group of towns or cities, located in a county with
a population of less than one million and the legislative
authority of a contiguous county, or the legislative authority
of the county or counties in which the towns or cities are
located, may enter into an agreement under chapter 39.34
RCW for the creation and joint operation of a public
facilities district.
(2)(a) A public facilities district shall be coextensive
with the boundaries of the city or town or contiguous group
of cities or towns that created the district.
(b) A public facilities district created by an agreement
between a town or city, or a contiguous group of towns or
cities, and a contiguous county or the county in which they
are located, shall be coextensive with the boundaries of the
towns or cities, and the boundaries of the county or counties
as to the unincorporated areas of the county or counties.
The boundaries shall not include incorporated towns or cities
that are not parties to the agreement for the creation and
joint operation of the district.
(3)(a) A public facilities district created by a single city
or town shall be governed by a board of directors consisting
of five members selected as follows: (i) Two members
appointed. by the legislative authority of the city or town;
and (ii) three members appointed by legislative authority
based on recommendations from local organizations. The
members appointed under (a)(i) of this subsection, shall not
be members of the legislative authority of the city or town.
The members appointed under (a)(ii) of this subsection, shall
be based on recommendations received from local organiza-
tions that may include, but are not limited to the local
chamber of commerce, local economic development council,
and local labor council. The members shall serve four -year
terms. Of the initial members, one must be appointed for a
one -year term, one must be appointed for a two -year term,
one must be appointed for a three -year term, and the
remainder must be appointed for four -year terms.
(b) A public facilities district created by a contiguous
group of cities and towns shall be governed by a board of
directors consisting of seven members selected as follows:
(i) Three members appointed by the legislative authorities of
the cities and towns; and (ii) four members appointed by the
legislative authority based on recommendations from local
organizations. The members appointed under (b)(i) of this
subsection shall not be members of the legislative authorities
of the cities and towns. The members appointed under
(b)(ii) of this subsection, shall be based on recommendations
received from local organizations that include, but are not
limited to the local chamber of commerce, local economic
development council, local labor council, and a neighbor-
hood organization that is directly affected by the location of
the regional center in their area. The members of the board
of directors shall be appointed in, accordance with the terms
[Title 35 RCW —page 1881
35.57.020 Regional centers— Charges and fees —
Powers. (1) A public facilities district is authorized to
acquire, construct, own, remodel, maintain, equip, reequip,
repair, finance, and operate one or more regional centers.
For purposes of this chapter, "regional center" means a
convention, conference, or special events center, or any
combination of facilities, and related parking facilities,
serving a regional population constructed, improved, or
rehabilitated after July 25, 1999, at a cost of at least ten
million dollars, including debt service. "Regional center"
also includes an existing convention, conference, or special
(2002 Ed.)
of the agreement under chapter 39.34 RCW for the joint
operation of the district and shall serve four -year term -pf
the initial members, one S.
must be appointed
for a one -year
term, one must be appointed for a two -year term, one
v"
mnst
be appointed for a three -year term, and the remainder
be appointed for four -year terms. must
(c) A public facilities district created by a town or city,
or a
contiguous group of towns or cities, and a contiguous
county or the county or counties in which they are located
shall be governed by a board of directors consisting of seven
members selected as follows: (i) Three members appointed,
by the legislative authorities of the cities, towns,
and county;
and (ii) four members appointed by the legislative
authority
based on. recommendations from local organizations. The
members appointed under (c)(i) of this subsection shall -not
be members of the legislative authorities of the cities, towns,
t
or county. The members appointed under c
'
subsection shall be based on recommendations received from
1
local organizations that include, but are not limited to, the
x
local chamber of commerce, the local economic development
j
council, the local labor council, and a neighborhood organ -
zation that is directly affected by the location of the regional
center in their area. The members of the board of directors
shall be appointed in accordance with the terms of the
agreement under chapter 39.34 RCW for the joint operation
of the district and shall serve four -year terms. Of the initial
members, one must be appointed for a one -year term, one
must be appointed for a two -year term, one must be appoint-
ed for a three -year term, and the remainder must be appoint-
ed for four -year terms.
(4) A public facilities district is a municipal corporation,
an independent taxing "authority" within the meaning of
Article VII, section 1 of the state Constitution, and a "taxing
district" within the meaning of Article VII, section 2 of the
state Constitution.
(5) A public facilities district shall constitute a body
corporate and shall possess all the usual powers of a corpo-
ration for public purposes as well as all other powers that
may now or hereafter be specifically conferred by statute,
including, but not limited to, the authority to hire employees,
staff, and services, to enter into contracts, and to sue and be
sued.
(6) A public facilities district may acquire and transfer
t
real and personal property by lease, sublease, purchase, or
sale. No direct or collateral attack on any public facilities
district purported to be authorized or created in conformance
with this chapter may be commenced more than thirty days
after creation by the city and/or county legislative authority.
[2002 c 363 § 1; 1999 c 165 § 1.]
35.57.020 Regional centers— Charges and fees —
Powers. (1) A public facilities district is authorized to
acquire, construct, own, remodel, maintain, equip, reequip,
repair, finance, and operate one or more regional centers.
For purposes of this chapter, "regional center" means a
convention, conference, or special events center, or any
combination of facilities, and related parking facilities,
serving a regional population constructed, improved, or
rehabilitated after July 25, 1999, at a cost of at least ten
million dollars, including debt service. "Regional center"
also includes an existing convention, conference, or special
(2002 Ed.)
Public Facilities Districts
events center, and related parking facilities, serving a
regional population, that is improved or rehabilitated after
July 25, 1999, where the costs of improvement or rehabilita-
tion are at least ten million dollars, including debt service.
A "special events center" is a facility, available to the public,
used for community events, sporting events, trade shows,
and artistic, musical, theatrical, or other cultural exhibitions,
presentations, or perfonnances. A regional center is conclu-
sively presumed to serve a regional population if state and
local government investment in the construction, improve -
ment, or rehabilitation of the regional center is equal to or
greater than ten million dollars.
(2) A public facilities district may enter into contracts
with any city or town for the purpose of exercising any
powers of a community renewal agency under chapter 35.81
RCW.
(3) A public facilities district may impose charges and
fees for the use of its facilities, and may accept and expend
or use gifts, grants, and donations for the purpose of a
regional center.
(4) A public facilities district may impose charges, fees,
and taxes authorized in RCW 35.57.040, and use revenues
derived therefrom for the purpose of paying principal and
interest payments on bonds issued by the public facilities
district to construct a regional center.
(5) Notwithstanding the establishment of a career, civil,
or merit service system, a public facilities district may
contract with a public or private entity for the operation or
management of its public facilities.
(6) A public facilities district is authorized to use the
supplemental alternative public works contracting procedures
set forth in chapter 39.10 RCW in connection with the
design, construction, reconstruction, remodel, or alteration of
any regional center.
(7) A city or town in conjunction with any special
agency, authority, or other district established by a county or
any other governmental agency is authorized to use the
supplemental alternative public works contracting procedures
set forth in chapter 39.10 RCW in connection with the
design, construction, reconstruction, remodel, or alteration of
any regional center funded in whole or in part by a public
facilities district. [2002 c 363 § 2; 2002 c 218 § 25; 1999
c165 §2.]
Reviser's note: This section was amended by 2002 c 218 § 25 and
by 2002 c 363 § 2, each without reference to the other. Both amendments
are incorporated in the publication of this section under RCW 1.12.025(2).
For rule of construction, see RCW 1.12.025(1).
Severability— Savings— Construction -2002 c 218: See notes
following RCW 35.81.005.
35.57.030 General obligation bonds. (1) To carry'
out the purpose of this chapter, a public facilities district
may issue general obligation bonds, not to exceed an
ai l6unt, together with any outstanding nonvoter- approved
general obligation indebtedness, equal to one -half of one
Percent of the value of the taxable property within the
district, as the term "value of the taxable property" is defined
in RCW 39.36.015. A facilities district additionally may
issue general obligation bonds for capital purposes only,
together with any outstanding general obligation indebted-
ness; not to exceed an amount equal to one and one -fourth
Percent of the value of the taxable property within the .
(2002 Pd,)
35.57.020
district, as the term "value of the taxable property" is defined
in RCW 39.36.015, when authorized by the voters of the
public facilities district pursuant to Article VIII, section 6 of
the' state Constitution, and to provide for the retirement
thereof by taxes authorized in chapter 165, Laws of 1999.
(2) General obligation bonds may be issued with a
maturity of up to thirty years, and shall be issued and sold
in accordance with the provisions of chapter 39.46 RCW.
(3) The general obligation bonds may be payable from
the operating revenues of the public facilities district in
addition to the tax receipts of the district. [1999 c 165 § 3.1
35.57.040 Authorized charges, fees, and taxes —
Gifts. (1) The board of directors of the public facilities
district may impose the following for the purpose of funding
a regional center:
(a) Charges and fees for the use of any of its facilities;
(b) Admission charges under RCW 35.57.100;
(c) Vehicle parking charges under RCW 35.57.110; and
(d) Sales and use taxes authorized under RCW
82.14.048 and 82.14.390.
(2) The board may accept and expend or use gifts,
grants, and donations for the purpose of a regional center.
The revenue from the charges, fees, and taxes imposed under
this section shall be used only for the purposes authorized by
this chapter. [1999 c 165 § 4.]
35.57.050 Travel, expense reimbursement policy—'
Required. The board of directors of the public facilities
district shall adopt a resolution that may be amended from
time to time that shall establish the basic requirements
governing methods and amounts of reimbursement payable
to such district officials and employees for travel and other
business expenses incurred on behalf of the district. The
resolution shall, among other things, establish procedures for
approving such expenses; the form of the travel and expense
voucher; and requirements governing the use of credit cards
issued in the name of the district. The resolution may also
establish procedures for payment of per diem to board
members. The state auditor shall, as provided by general
law, cooperate with the public facilities district in establish-
ing adequate procedures for regulating and auditing the
reimbursement of all such expenses. [1999 c 165 § 5.1
35.57.060 Expenditure of funds — Purposes. The
board of directors of the public facilities district shall have
authority to authorize the expenditure of funds for the public
purposes of preparing and distributing information to the
general public and promoting, advertising, improving,
developing, operating, and maintaining a regional center.
Nothing contained in this section may be construed to
authorize preparation and distribution of information to the
general public for the purpose of influencing the outcome of
a district election. [1999 c 165 § 6.]
35.57.070 Service provider agreements. The public
facilities district may secure services by means of an
agreement with a service provider. The public facilities
district shall publish notice, establish criteria, receive and
evaluate proposals, and negotiate with respondents under
[Title 35 RCW —page 189]
Fr .
35.57.070
Title 35 RCW: Cities and Towns
requirements set forth by district resolution. [1999 c 165 §
7.]
35.57.080 Purchases and sales— Procedures. In
addition to provisions contained in chapter 39.04 RCW, the
public facilities district is authorized to follow procedures
contained in RCW 43.19.1906 and 43.19.1911 for all
purchases, contracts for purchase, and sales. [1999 c 165 §
8.]
35.57.090 Revenue bonds — Limitations. (l.) A
public facilities district may issue revenue bonds to fund
revenue - generating facilities, or portions of facilities, which
it is authorized to provide or operate. Whenever revenue
bonds are to be issued, the board of directors of the district
shall create or have created a special fund or funds from
which, along with any reserves created pursuant to RCW
39.44.140, the principal and interest on such revenue bonds
shall exclusively be payable. The board may obligate the
district to set aside and pay into the special fund or funds a
fixed proportion or a fixed amount of the revenues from the
public improvements, projects, or facilities, and all related
additions, that are funded by the revenue bonds. This
amount or proportion shall be a lien and charge against these
revenues, subject only to operating and maintenance expens-
es. The board shall have due regard for the cost of opera-
tion and maintenance of the public improvements, projects,
or facilities, or additions, that are funded by the revenue
bonds, and shall not set aside into the special fund or funds
a greater amount or proportion of the revenues that in its
judgment will be available over and above the cost of
maintenance and operation and the amount or proportion, if
any, of the revenue so previously pledged. The board may
also provide that revenue bonds payable out of the same
source or sources of revenue may later be issued on a parity
with any revenue bonds being issued and sold.
(2) Revenue bonds issued under this section shall not be
an indebtedness of the district issuing the bonds, and the
interest and principal on the bonds shall only be payable
from the revenues lawfully pledged to meet the principal and
interest requirements and any reserves created under RCW
39.44.140. The owner or bearer of a revenue bond or any
interest coupon issued under this section shall not have any
claim against the district arising from the bond or coupon
except for payment from the revenues lawfully pledged to
meet the principal and interest requiremenu and any reserves
created under RCW 39.44.140. The substance of the
limitations included in this subsection shall be plainly
printed, written, or engraved on each bond issued under this
section.
(3) Revenue bonds with a maturity in excess of thirty
years shall not be issued. The board of directors of the
district shall by resolution determine for each revenue bond
issue the amount, date, form, terms, conditions, denomina-
tions, maximum fixed or variable interest rate or rates,
maturity or maturities, redemption rights, registration
privileges, manner of execution, manner of sale, callable
provisions, if any, and covenants including the refunding of .
existing revenue bonds. Facsimile signatures may be used
on the bonds and any coupons. Refunding revenue bonds
[Title 35 RCW —page 190]
may be issued in the same manner as revenue bonds are
issued. [1999 c 165 § 9.]
35.57.100 Tax on admissions. A public facility
district may levy and fix a tax of not more than one cent on
twenty cents or fraction thereof to be paid by the person who
pays an admission charge to a regional center. This includes
a tax on persons who are admitted free of charge: or at
reduced rates if other persons pay a charge or a regular
higher charge for the same privileges or accommodations.
The term "admission charge" includes:
(1) A charge made for season tickets or subscriptions;
(2) A cover charge, or a charge made for use of seats
and tables reserved or otherwise, and other similar accom-
mcdations;
(3) A charge made for food and refreshment if free
entertainment, recreation, or amusement is provided;
(4) A charge made for rental or use of equipment or
facilities for purposes of recreation or amusement; if the
rental of the equipment or facilities is necessary to the
enjoyment of a privilege for which a general admission is
charged, the combined charges shall be considered as the
admission charge;
(5) Automobile parking charges if the amount of the
charge is determined according to the number of passengers
in the automobile. [1999 c 165 § 10.]
35.57.110 Tax on vehicle parking charges. A public
facility district may levy and fix a tax on any vehicle
parking charges imposed at any parking facility that is
owned or leased by the public facility district as part of a
regional center. No county or city or town within which the
regional center is located may impose a tax of the same or
similar kind on any vehicle parking charges at the facility.
For the purposes of this section, "vehicle parking charges"
means only the actual parking charges exclusive of taxes and
service charges and the value of any other benefit conferred.
The tax authorized under this section shall be at the rate of
not more than ten percent. [1999 c 165 § 11.1
35.57.900 Severability -1999 c 165. If any provision
of this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of
the provision to other persons or circumstances is not
affected. [1999 c 165 § 23.1
Chapter 35.58
METROPOLITAN MUNICIPAL CORPORATIONS
Sections
35.58.010
Declaration of policy and purpose.
35.58.020
Definitions.
35.58.030
Corporations authorized — Limitation on boundaries.
35.58.040
Territory which must be included or excluded — Boundaries.
35.58.050
Functions authorized.
35.58.060
Unauthorized functions to be performed under other law.
35.50 non
D i„ «. o «.«. f ole r: Dom.,. *--
ts, procedure.
35
r
Adopted by Reference lusion o
35. Ordinance # 3 5 on ►7 y tax -
- -� ,/ /• � . L �. .lion —First
35. Ci erk t�•�
(2002 Ed.)
3:
35
35
(2C
Page 1 of 1
RCW 82.41.010
Purpose.
It is the purpose of this chapter to simplify the confusing, unnecessarily duplicative, and burdensome
motor fuel use tax licensing, reporting, and remittance requirements imposed on motor carriers involved
in interstate commerce by authorizing the state of Washington to participate in a multistate motor fuel
tax agreement for the administration, collection, and enforcement of those states' motor fuel use taxes.
[1982 c 161 § 1.]
Adopted by Reference
Ordinance # 3Y,� 5 on 11-7-D
"City Clerk
http: / /search.mrsc.org /mc /rcw /RCW %20 %2082 %20 %20TITLE /RCW %20 %2082 %20. %... 11/13/2002
STATE OF WASHINGTON,
COUNTY OF SNOHOMISH
On the 71h day of November, 2002, the City Council of
the City of Edmonds, passed Ordinance No. 3425. 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 $7,015,000 par value of Limited Tax
General Obligation Bonds. 2002, of the City for gener-
al City purposes to provide funds with which to pay
costs of acquiring and renovating facilities for a per-
forming arts theatre, creating on -site parking, and
constructing a meeting room for the theatre: fixing the
date, form, maturities, interest rates, terms and cove.
nants of the bonds: establishing a bond redemption
Ifund and a construction fund; providing for bond
insurance; and approving the sale and providing for
the delivery of the bonds to Seattle- Northwest Securi-
ties Corporation of Seattle, Washington.
The lull text of this Ordinance will be mailed upon
request.
DATED this 8th day of November, 2002.
CITY CLERK, SANDRA S. CHASE
j Published: November 12, 2002.
Affidavit of Publication
S.S.
The undersigned, being first duly swom 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
City of Edmonds
Summary of Ordinance No. 3425
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:
November 12, 2002
and that said newspaper was regularly distributed to its subscribers during
all of said period.
Subscribed and sworn to before me this 12th
day of November, 2002
• o NOTARY . �0
rn /
Notary Public in and for ie State �ij sbin3ton, reslding-at or
Everett,SnohomishCou ty. a±l9j•.• 6,.•��
OFWASHNN;