Ordinance 1660t?g p - j - 9
CITY OF EDMONDS, WASHINGTON
ORDINANCE NO, 1660
AN ORDINANCE of the City of Edmonds, Washington,
providing for the acquisition of certain parcels of real estate
located at 200 Railroad Avenue in the City of Edmonds, Wash-
ington, including the three buildings presently located there-
on and the demolition of one building and the remodeling and
improving of the other two buildings for a Senior Citizens' Cen-
ter; declaring the estimated cost as near as may be; providing
for the issuance and sale of $162, 000.00 par value of
"General Obligation Bonds, 1973, " of the City to pay a part
of the cost thereof and the remaining cost of the construction,
installation and equipping of a swimming pool in the Yost Me-
morial Park in the City of Edmonds, Washington, as authorized
by Ordinance No. 1557; specifying the maturities and fixing
"the form and maximum effective interest rate of such bonds;
establishing a "General Obligation Bond Fund, 1973" and pro-
viding for the sale of such bonds;
WHEREAS, the City is in urgent need of acquiring two parcels of land
consisting of approximately 1.49 acres of uplands and 1.21 acres of tidelands owned
by Wilford B. Nelson and Thelma P. Nelson, his wife, and Stuart D. Nelson and
Doris L. Nelson, his wife, and located at 200 Railroad Avenue, in the City of Ed-
monds, Washington, including the three buildings located thereon and of demolishing
one of such buildings and remodeling and improving the remaining two buildings as
a Senior Citizens' Center, and the City does not have available sufficient funds to
meet the total estimated cost thereof; and
WHEREAS, pursuant to Ordinance No. 1557, passed by the City Council
and approved by the Mayor on May 18, 1971, the City provided for the construction,
installation and equipping of an uncovered swimming pool with all necessary appurte-
nances, in the Yost Memorial Park in the City of Edmonds, Washington, and issued
and sold $250, 000.00 par value of "General Obligations Bonds, 1971" of the City,
to pay the cost thereof and, due to unforeseen circumstances, the proceeds from the
sale of such bonds were insufficient to pay all of the cost of such swimming pool, and
the City is in urgent need of an additional $62, 000.00 to pay the cost of completing
such swimming pool; 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 1973 is $103,741,549.00 and at the time of the passage of this ordinance the
existing outstanding general indebtedness consists of $638, 000.00 par value of
general obligation bonds, of which $380, 000.00 par value represents general ob-
ligation 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 $258, 000.00 par value re-
presents 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 in-
debtedness for which bonds are hereby authorized to be issued is $162,000.00;
NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, DO
ORDAIN, as follows:
Section 1. The City of Edmonds, Washington, shall acquire two par-
cels of land consisting of approximately 1.49 acres of uplands and 1.21 acres of
tidelands owned by Wilford B. Nelson and Thelma P. Nelson, his wife, and Stuart
D. Nelson and Doris L. Nelson, his wife, and located at 200 Railroad Avenue, in
the City of Edmonds, Washington, including the three buildings located thereon and
shall demolish one of such buildings and remodel and improve the remaining two
buildings as a Senior Citizens' Center.
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 $430,000.00, of which it is anticipated $330,000.00 will
be provided by grants from the United States Department of Housing and Urban Devel-
opment. The City shall borrow money on the credit of the City and issue negotiable
general obligation bonds evidencing such indebtedness in the amount of $100,000.00
to obtain funds to pay the balance of such cost and in the amount of $62, 000.00 to
obtain funds to pay the remaining costs of completing the construction and installa-
tion of the swimming pool in the Yost Memorial Park as authorized by Ordinance No. 1557,
such $100, 000.00 and $62, 000.00 of bonds to be combined into a single issue of
$162, 000.00 par value of bonds. Such general indebtedness to be incurred shall be
within the limit of up to 3/4 of 1% of the value of the taxable property within the City
permitted for general municipal purposes without a vote of the qualified voters therein.
-2-
Section 3. The bonds shall be called "General Obligation Bonds, 1973,"
of the City of Edmonds, Washington, shall be dated June 1, 1973, shall be in deno-
minations of $5, 000.00 each, except for Bond No. 1, which shall be in the denomina-
tion of $2, 000.010, shall be numbered from 1 to 33, inclusive, and shall bear in-
terest at an effective rate not to exceed 8% per annum, payable semiannually on
June 1 and December 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 June 1 in
the years and amounts as follows:
Bond Numbers
(Inclusive)
Amounts
Maturities
1 to 3
$12,000
June
1,
1975
4 to 5
10,000
June
1,
1976
6 to 7
10,000
June
1,
1977
8 to 9
10,000
June
1,
1978
10 to 11
10,000
June
1,
1979
12 to 13
10,000
June
1,
1980
14 to 15
10,000
June
1,
1981
16 to 17
10,000
June
1,
1982
18 to 19
10,000
June
1,
1983
20 to 21
10,000
June
1,
1984
22 to 24
15,000
June
1,
1985
25 to 27
15,000
June
1,
1986
28 to 30
15,000
June
1,
1987
31 to 33
15,000
June
1,
1988
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 June 1, 1981, in inverse numerical order, high-
est 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
-3-
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 pay-
ment of the principal of and interest on such bonds.
Section 6. The bonds shall be substantially in the following form:
No. $5,000.00
($2, 000.00 on Bond No. 1)
UNITED STATES OF AMERICA
STATE OF WASHINGTON
CITY OF EDMONDS
GENERAL OBLIGATION BOND, 1973
°
KNOW ALL MEN BY THESE PRESENTS: That the City of Edmonds,
Washington, is justly indebted to and for value receiver-:d '�ereby pro-
mises to pay to bearer on the FIRST DAY of JUNE, 19 , the sum
of
FIVE THOUSAND DOLLARS
(TWO THOUSAND DOLLARS on Bond No. 1)
together with interest thereon at the rate of
PERCENT
%} per annum, payable semiannually on June 1 and December
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 $162,000.00 par value of
bonds, all of like date, tenor and effect, except as to denominations,
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 for the acquisition of certain parcels
of real estate located at 200 Railroad Avenue in the City of Edmonds,
Washington, including the three buildings presently located thereon
and the demolition of one building and the remodeling and improving
of the other two buildings for a Senior Citizens' Center and to pay the
remaining cost of the construction, installation and equipping of a
swimming pool in the Yost Memorial Park in the City of Edmonds,
Washington, as authorized by Ordinance No. 1557, 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
June 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 pur-
chase 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
adate upon, payment of the redemption price into the bond redemp-
tion fund.
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 sub-
ject -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 re-
quired by law, and that the total indebtedness of the City, in-
cluding 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 June, 1973.
ATTEST:
City Clerk
CITY OF EDMONDS, WASHINGTON
By ffa_csim_ile siana_ ture)
Mayor
The form of the interest coupons shall be substantially as follows:
Coupon No.
On the FIRST DAY OF (JUNE) (DECEMBER), 19 , the CITY
OF EDMONDS, WASHINGTON, upon presentation and surrender of this
-5-
coupon, will pay to the bearer at the office of the City Treasu-
rer 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, 1973, " dated June 1, 1973,
and numbered
CITY OF EDMONDS, WASHINGTON
By (facsimile signature)
Mayor
ATTEST:
(facsimile signature)_
City Clerk
Section 7. The bonds shall be printed or lithographed on good bond paper
arid. :shalLbe signed -by -Vie, 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 Obliga-
tion Bond Fund, 1973, " of the City. The accrued interest received, if any, shall
be paid into the "General Obligation Bond Fund, 1973, " and $62, 000.00 of the
principal proceeds received from the sale of the bonds shall be paid into the
"Swimming Pool Fund" of the City of Edmonds, created and established in the office
of the City Treasurer by Ordinance No. 1557, and the balance of the principal proceeds
received from the sale of the bonds shall be paid into the Senior Center Const. Fund
of the City of Edmonds, Washington.
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
Pity 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
June 12, 1973, 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.
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 zthe purpose of evaluating bids only, the coupons rates bid being con-
trolling, 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 in 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 $8,100.00. 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 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
-7-
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, Law-
rence, 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 Seattle -Northwest Securities Corporation, Logan Building,
Seattle, Washington 98101, the City's financial consultants.
PASSED by the City Council of the City of Edmonds, Washington, at a regular
meeting thereof,. andAPPROVED by the Mayor this 15t-hday of May, 1973.
H. H. HARRISON
Mayor
ATTEST:
IRENE VARNEY MORAN
City Clerk
FORM APP OWED:
City Attorney
1