Ordinance 1557CITY OF EDMONDS, WASHINGTON
ORDINANCE NO. 1557
AN ORDINANCE of the City of Edmonds, Wash-
ington, providing for the construction,
installation and equipping of an uncovered
swimming pool and/or pools with all necessary
appurtenances in the Yost Memorial Park in
the City of Edmonds, Washington; declaring
the estimated cost thereof as near as may be;
providing for the issuance and sale of
$250,000.00 par value of "General Obligation
Bonds, 1971," of the City to pay the cost
thereof; specifying the maturities and fii:ing
the form and maximum effective interest rate
of such bonds; establishing a "General
Obligation Bond Fund, 1971"; and providing
for the sale of such bonds.
WHEREAS, the City is in -urgent need of constructing,
installing and equipping an uncovered swimming pool and/or pools with
all necessary appurtenances in the Yost Memorial Park in the City
of Edmonds, and the City does not have available sufficient funds
to meet the total estimated cost thereof; and
WHEREAS, the assessed valuation of the taxable property of
the City of Edmonds as ascertained by the last assessment for City
purposes for the calendar year 1971 is $87,568,586.00 and at the
time of the passage of this ordinance the existing outstanding general
indebtedness consists of $708,000.00 par value of general obligation
bonds, of which $684,000.00 par value represents general obligation
bonds issued within the limit up to currently 2-1/2% of the value of
the taxable property within the City permitted pursuant to a vote of
the electors within the City for general municipal capital purposes
and $24,000.00 par value represents general obligation bonds issued
within the limit up to currently 3/4ths of 1% of the value of the
taxable property within the City permitted without a vote of the
electors within the City for general municipal purposes, and the
amount of indebtedness for which bonds are hereby authorized to be
issued is $250,000.00; NOW, THEREFORE,
THE CITY COUNCIL OF'THE CITY OF EDMONDS, WASHINGTON, DO
ORDAIN, as follows:
Section 1. The City of Edmonds, Washington, shall construct,
install and equip an uncovered swimming pool and/or pools with all
necessary appurtenances in the Yost Memorial Park in the City of
Edmonds.
Section 2. The estimated cost of the foregoing, including
the cost of the issuance of general obligation bonds herein authorized,
is hereby declared to be, as near as may be, the sum of $250,000.00.
The City shall borrow money on the credit of the City and issue
negotiable general obligation bonds evidencing such indebtedness.
Such general indebtedness to be incurred shall be within the limit
of up to 3/4 of to 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. The bonds shall be called "General Obligation
Bonds, 1971," of the City of Edmonds, Washington, shall be dated
July 1, 1971, shall be in denominations,of $5,000.00 each, shall
be numbered from 1 to 50, inclusive, and shall bear interest at an
effective rate not to exceed 8% per annum, payable semiannually on
January 1 and July 1 of each year, as evidenced by coupons attached
to the bonds representing interest to maturity with full obligation
on the part of,the City to pay interest at the bond rate, from and
after maturity, until the bonds, both principal and interest, are
paid in full. Both principal and interest are to be paid in lawful
money of the United States of America at the office of the City
Treasurer of Edmonds, Washington. The bonds shall mature serially
in order of their numbers on July 1 in the years and amounts as
follows:
Bond Numbers
(Inclusive) Amounts
Maturities
1 to 2 $10,000
July
11, 1973
3 to 4 10,000
July
1, 1974
5 to 6 10,000
July
1, 1975
7 to 8 10,000
July
1, 1976
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Bond Numbers
(Inclusive)
Amounts
Maturities
9
to
10
$10,000
July
1,
1977
11
to
12
10,000
July
1,
1978
'13
to
14
10,000
July
1,
1979
15
to
16
10,000
July
1,
1980
17
to
18
10,000
July
1,
1981
19
to
20
10,000
July
1,
1982
21
to
23
15,000
July
1,
1983
24
to
26
15,000
July
1,
1984
27
to
29
15,000
July
1,
1985
30
to
32
15,000
July
1,
1986
33
to
35
15,000
July
1,
1987
36
to
38
15,000
July
1,
1988
39
to
42
20,000
July
1,
1989
43
to
46
20,000
July
1,
1990
47
to
50
20,000
July
1,
1991
Section 4. The City of Edmonds reserves the right to redeem
any or all of the outstanding bonds of this issue at par, plus accrued
interest, on any semiannual interest payment date, on or after July 1,
1981, in inverse numerical order, highest numbers first, by publishing
notice of such intended redemption in the official newspaper of the
City at least once not less than thirty nor more than forty-five days
prior to the call date, and by mailing a copy of such notice within
the same period to the principal underwriter who purchases the bonds.
In addition, such redemption notices shall also be sent to Moody's
Investors Service, Inc., and Standard & Poor's Corporation, at their
offices in New York, New York, but the mailing of such notice to such
corporations shall not be a condition precedent to the redemption of
such bonds. Interest on any bonds so called for redemption shall
cease on such call date upon payment of the redemption price into the
bond redemption fund for such bonds.
Section 5. The City of Edmonds hereby irrevocably pledges
itself to levy taxes annually, within the constitutional and statutory
tax limitations provided by law, upon all property in the City subject
to taxation in an amount sufficient to pay the principal of and
interest on the bonds as the same shall accrue, and the full faith,
credit and resources of the City are hereby irrevocably pledged for
the payment of the principal of and interest on such bonds.
form:
Section 6. The bonds shall be substantially in the following
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No.
$5,000.00
UNITED STATES OF AMERICA
STATE OF WASHINGTON
CITY OF EDMONDS
GENERAL OBLIGATION BOND, 1971
KNOW ALL MEN BY THESE PRESENTS: That the City
of Edmonds, Washington, is justly indebted to
and for value received hereby promises to pay to
bearer on the FIRST DAY OF JULY, 19 , the sum of
FIVE THOUSAND DOLLARS
together with interest thereon at the rate of
PERCENT
( %) per annum, payable semiannually on
January 1 and July 1 of each year, interest to
maturity being evidenced by and payable upon
the presentation and surrender of the attached
interest coupons as they severally become due,
with full obligation on the part of the City to
pay interest at the same rate from and after the
maturity date, in the absence of coupons, until
this bond with interest is paid in full. The bond
is payable, both principal and interest, in lawful
money of the United States of America at the office
of the City Treasurer of the City of Edmonds,
Washington.
This bond is one of a total issue of $250,000.00
par value of bonds, all of like date, tenor and
effect, except as to maturities (and interest rates
if more than one interest rate is bid), issued by
the City of Edmonds for general municipal purposes,
to -wit, for the purpose of providing funds to
construct, install and equip an uncovered swimming
pool and/or pools with all necessary appurtenances
in the Yost Memorial Park in the City of Edmonds,
and issued in full compliance with the ordinances
of the City of Edmonds and the laws and constitution
of the State of Washington.
The City of Edmonds reserves the right to redeem
any or all of the outstanding bonds of this issue
at par, plus accrued interest, on any semiannual
interest payment date, on or after July 1, 1981, in
inverse numerical order, highest numbers first, by
publishing notice of such intended redemption in the
official newspaper of the City at least once not less
than thirty nor more than forty-five days prior to
the call date, and by mailing a copy of such notice
within the same period to [the original purchaser or
the account manager of the underwriters who purchase
the bonds]. In addition, such redemption notices
shall also be sent to Moody's Investors Service, Inc.,
and Standard & Poor's Corporation, at their offices
in New York, New York, but the mailing of such
notices to such corporations shall not be a condition
precedent to the redemption of such bonds. Interest
on any bonds so called for redemption shall cease on
such call date upon payment of the redemption price
into the bond redemption fund.
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The City of Edmonds hereby irrevocably pledges
itself to levy taxes annually, within the constitu-
tional and statutory tax limitations provided by
law, upon all property in the City subject to
taxation in an amount sufficient to pay the principal
of and interest on the bonds of this issue as the
same shall accrue, and the full faith, credit and
resources of the City are hereby irrevocably pledged
for the payment of the principal of and interest on
said bonds.
It is hereby certified that all acts, conditions
and things required to be done precedent to and in
the issuance of this bond have been done, have
happened and have been performed as required by law,
and that the total indebtedness of the City, including
this bond issue, does not exceed any constitutional
or statutory limitations.
IN WITNESS WHEREOF, the City of Edmonds, Washington,
has caused this bond to be signed by the facsimile
signature of its Mayor and attested by the manual
signature of its City Clerk, and its corporate seal
to be hereto affixed and the interest coupons attached
to be signed with the facsimile signatures of those
officials this first day of July, 1971.
CITY OF EDMONDS, WASHINGTON
By (facsimile signature)
Mayor
ATTEST:
City Clerk
The form of the interest coupons shall be substantially
as follows:
Coupon No.
On the FIRST DAY OF (JANUARY) ( JULY) , 19 _, the
CITY OF EDMONDS, WASHINGTON, upon presentation and
surrender of this coupon, will pay to the bearer
at the office of the City Treasurer the sum shown
hereon in lawful money of the United States of
America, said sum being the semiannual interest
due that date upon its "General Obligation Bond,
1971," dated July 1, 1971, and numbered
CITY OF EDMONDS, WASHINGTON
By (facsimile signature)
Mayor
ATTEST:
(facsimile signature)
City Clerk
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Section 7. The bonds shall be printed or lithographed on
good bond paper and shall be signed by the facsimile signature of
the Mayor and attested by the manual signature of the City Clerk
of the City of Edmonds, Washington, under the seal of the City and
the coupons shall bear the facsimile signatures of the Mayor and
the City Clerk.
Section 8. There is hereby created and established in
the office of the City Treasurer a special fund to be known and
designated as the "General Obligation Bond Fund, 1971," of the City.
The accrued interest received, if any, shall be paid into the "General
Obligation Bond Fund, 1971," and the principal proceeds received from
the sale of the bonds shall be paid into the Swimming Pool
Fund of the City of Edmonds.
All taxes collected for and allocated to the payment of the
principal of and interest on the bonds shall hereafter be deposited
in the "General Obligation Bond Fund, 1971."
Section 9. The bonds shall be sold for cash at public sale
for not less than par, plus accrued interest, upon sealed bids to be
received at the office of the City Clerk, up to the day and hour stated
in the Notice of Bond Sale hereinafter directed to be given.
Notice calling for bids to purchase such bonds shall be
published once a week for four consecutive weeks in the official
newspaper of the City of Edmonds and such notice shall also be
published once in the Daily Journal of Commerce of Seattle, Washington,
at least ten days before the bid opening date. Such notice shall
specify that bids for purchase of the bonds shall be received by the
City Clerk of the City of Edmonds at the Council Chambers of the City
Hall of the City on July 6 , 1971, up to 7:00 o'clock p.m.
(PDST), at which time all bids will be publicly opened for the purchase
of the bonds.
A copy of the Notice shall, at least three weeks prior to
the date fixed for the sale, be mailed to the State Finance Committee,
Olympia, Washington.
Zim
Bids shall be invited for the purchase of the bonds with
fixed maturities in accordance with the schedule specified in Section
3 of this ordinance.
The Notice shall specify the maximum effective rate of
interest the bonds shall bear, to -wit, 8% per annum, and shall require
bidders to submit a bid specifying:
(a) The lowest rate or rates of interest
and premium, if any, above par at which the
bidder will purchase the bonds; or
(b) The lowest rate or rates of interest
at which the bidder will purchase the bonds at par.
For the purpose of evaluating bids only, the coupons rates
bid being controlling, each bid shall state the total interest cost
over the life of the bonds and the net effective interest rate of
such bid.
Coupon rates shall be iri multiples of 1/8 or 1/10 of 1%,
or both. No more than one rate of interest may be fixed for any one
maturity. Only one coupon will be attached to each bond for each
installment of interest thereon, and bids providing for additional
or supplemental coupons will be rejected. The maximum differential
between the lowest and highest coupon rates named in any bid shall
not exceed 2%.
The bonds shall be sold to the bidder making the best bid,
subject to the right of the City Council of the City of Edmonds to
reject any and all bids and to readvertise the bonds for sale in the
manner provided by law, and no bid for less than all of the bonds
shall be considered.
All bids shall be sealed and, except the bid of the State of
Washington, if one is received, shall be accompanied by a deposit of
$12,500.00. The deposit shall be either cash or by certified or
cashier's check made payable to the City Treasurer of the City of
Edmonds, and shall be promptly returned if the bid is not accepted.
If the bonds are ready for delivery and the successful bidder shall
fail and neglect to complete the purchase of the bonds within forty
-7-
days following the acceptance -of his bid, the amount of his deposit
shall be forfeited to the City of Edmonds and in that event the City
Council may accept the bid of the one making the next best bid. If
there be two or more equal bids for the bonds for not less than par
plus accrued interest and such bids are the best bids received, the
City Council shall determine by lot which bid will be accepted. The
bonds will be delivered to the successful bidder at the office of the
City Treasurer of the City of Edmonds or in the City of Seattle at
the City's expense, or -at such other place as the City Treasurer and
the successful bidder may mutually agree upon at the purchaser's
expense. A no -litigation certificate in the usual form will be
included in the closing papers.
Any bid presented after the hour specified for the receipt
of bids will not be received and any bid not accompanied by the required
bid deposit at the time of opening such bid will not be read or
considered.
The City Clerk of the City of Edmonds shall be and is hereby
authorized and directed to publish Notice for the purchase of the
bonds in the manner required by law in accordance with the provisions
of this section. Such Notice shall provide that the City of Edmonds
will cause the bonds to be printed and lithographed and signed and
will furnish the approving legal opinion of Messrs. Roberts, Shefelman,
Lawrence, Gay & Moch, municipal bond counsel of Seattle, Washington,
covering the bonds without cost to the purchaser, said opinion also
being printed on each bond. Such Notice shall also provide that
further information regarding the details of such bonds and financial
and other data with reference to the City of Edmonds will be found in
an Official Statement which may be obtained upon request made to the
City Clerk, or made to Foster & Marshall Inc., 205 Columbia Street,
Seattle, Washington 98104, the City's financial consultants.
PASSED by the City Council of the City of Edmonds, Washington,
at a regular meeting thereof, and APPROVED by the Mayor this 18th day
of May, 1971.
H. •H., HARRISON
Mayor
ATTEST:
I RENE VARNEY MORN
City Clerk
FORM APPROVED:
JAMES A. MURPHY
City Attorney