Ordinance 1957CITY OFF EDMONDS, WASHINGTON
ORDINANCE NO. /f-,S'7
A14 ORDINANCE specifying and adopting a plan or
system for the acquisition and construction of
certain additions and betterments to and extensions
and improvements of the combined water and sewerage
systems comprising the waterworks utility of the City;
declaring the estimated cost thereof as nearly as may
be; providing for the issuance of $4,805,000 par value
of "Water and Sewer Revenue Refunding and Construction
Bonds, 1977," for the purpose of providing a part of
the funds (a) to carry out the plan or system for the
acquisition and construction of certain additions and
betterments to and extensions and improvements of the
waterworks utility of the City specified and adopted
herein, and (b) to pay, retire and refund the outstand-
ing "Wa"ter and Sewer Revenue Bonds, 1959," "Water and
Sewer Revenue Bonds, 1960," "Water and Sewer Revenue
Bonds, 1961," "Water and Sewer Revenue Bonds, 1965,"
"Water and Sewer Revenue Bonds, 1966," "Water and
Sewer Revenue Bonds, 1967," "Water and Sewer Revenue
Bonds, 1970" (interest only), "Water and Sewer Revenue
Refunding Bonds, 1972," and "Water and Sewer Revenue
Refunding Bonds, 1976," of the City; fixing the date,
form, denomination, maturities, interest rates, terms
and covenants of such bonds; creating a special
refunding fund to provide for the refunding operation;
creating a special bond redemption fund to provide for
the payment of the bonds authorized herein and bonds
hereafter issued on a parity therewith; providing for
and authorizing the purchase of certain obligations
out of the proceeds of the sale of the bonds herein
authorized and out of money presently on hand in the
bond redemption funds for the bonds being refunded
and for the use and application of the money to be
derived from such investment; providing for the payment
and redemption of the outstanding bonds to be refunded;
authorizing the execution of an agreement with Rainier
National Bank as Refunding Trustee; and confirming the
sale and providing for the delivery of the bonds herein
authorized to Seattle -Northwest Securities Corporation
of Seattle, Washington.
WHEREAS, the City of Edmonds, Washington (hereinafter called
the "City"), by Ordinance No. 635 passed June 17, 1953, specified
and adopted a system or plan of additions to and betterments and
extensions of the waterworks system of the City, including additions
to and betterments and extensions of the system of sewerage of the
City; provided that the existing system of sewerage, including all
additions, betterments and extensions thereto, should become a part
of the waterworks utility of the City; provided for the issuance
of not to exceed $275,000 par value of "Water and Sewer Revenue
Bonds, 1953," in one or more series to provide the funds required
to pay the cost thereof; and provided for the issuance and sale of
$135,000 par value of bonds as "Series A" for the purpose of obtaining
funds to carry out a portion of said system or plan of additions to
and betterments and extensions of the sewerage system of the City, -
which would become a part of the waterworks utility of the City; and
WHEREAS, pursuant to Ordinance No. 695 passed April 16,
1957, an additional $140,000 par value of said total authorized issue
of "Water and Sewer Revenue Bonds, 1953," were issued as "Series B";
and
WHEREAS, the City by.Ordinance No. 773 passed July 7, 1959,
specified and adopted a system or plan,of additions to and betterments
and extensions of the waterworks utility of the City, including the
sewerage system as a part thereof, and issued and sold $240,000 par
value of "Water and Sewer Revenue Bonds, 1959" (hereinafter referred
to as the "1959 Bonds"), to obtain the funds with which to pay the
cost thereof, the lien and charge upon the gross revenues from the
combined water and sewer systems comprising the waterworks utility
of the City for such bonds and any parity bonds thereafter issued
being junior and inferior to'the prior lien and charge upon such
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gross revenues for the then outstanding "City of Edmonds Water
Revenue Bonds, 1949" (all of which bonds have now been retired),
"Water and Sewer Revenue Bonds, 1953, Series A," and "Water and
Sewer Revenue Bonds, 1953, Series B"; and
WHEREAS, by Section 13 of said Ordinance No. 773, the
City reserved the right to issue additional and/or refunding water
and sewer revenue bonds which would constitute a lien and charge
upon the gross revenues of the waterworks utility, including the
sewerage system as a part thereof and including all additions
thereto and betterments, replacements and extensions thereof at any
time made, on a parity with said 1959 Bonds if certain conditions
should be met and complied with at the time of the issuance of such
additional and/or refunding water and sewer revenue bonds; and
WHEREAS, the City by Ordinance No. 814 passed May 3,
1960, heretofore issued and sold $150,000 par value of "Water and
Sewer Revenue Bonds, 1960" (hereinafter referred to as the "1960
Bonds"), and by Ordinance No. 909 passed November 21, 1961, heretofore
issued and sold $100,000 par value of "Water and Sewer Revenue Bonds,
1961" (hereinafter referred to as the "1961 Bonds"), both of said
bond issues having been issued on a parity of lien with the
outstanding 1959 Bonds and with each other pursuant to the provisions
of Section 13 of Ordinance No. 773; and
WHEREAS, pursuant to Ordinance No. 1042 passed March 3,
1964, the City issued and sold $215,000 par value -of "Water and
Sewer Refunding Revenue Bonds, 1964" (hereinafter referred to as
the "1964 Bonds"), to obtain,the funds with which to pay, retire
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and cancel on July 1, 1964, all of the outstanding "Water and
Sewer Revenue Bonds, 1953, Series A," and on May 1, 1964, all of
the outstanding "Water and Sewer Revenue Bonds, 1953, Series B,"
all of which bonds were called, paid and retired on said respective
call dates and which 1964 Bonds were issued on a parity of lien with
the 1959 Bonds, the 1960 Bonds and the 1961 Bonds in accordance
with the provisions of Section 13 of Ordinance No. 773; and
WHEREAS, pursuant to Ordinance No. 1141 passed September
21, 1965, the City issued and sold $125,000 par value of "Water and
Sewer Revenue Bonds, 1965" (hereinafter referred to as the "1965
Bonds"), pursuant to Ordinance No. 1207 passed May 17, 1966, the
City issued and sold $1,000,000 par value of "Water and Sewer Revenue
Bonds, 1966" (hereinafter referred to as the "1966 Bonds"), pursuant
to Ordinance No. 1314 passed July 5, 1967, the City issued and sold
$400,000 par value of "Water and Sewer Revenue Bonds, 1967"
(hereinafter referred to as the "1967 Bonds"), and pursuant to
Ordinance No. 1506 passed October 20, 1970, the City issued and
sold $1,000,000 par value of "Water and Sewer Revenue Bonds, 1970"
(hereinafter referred to as the "1970 Bonds"), all of which bond
issues were issued on a parity of lien with the 1959 Bonds and all
subsequent issues of parity bonds above referred to and with each
other in accordance with the provisions of Section 13 of Ordinance
No. 773; and
WHEREAS, pursuant to Ordinance No. 1603 passed June 20,
1972, the City issued and sold $1,035,000 par value of "Water and
Sewer Revenue Refunding Bonds, 1972" (hereinafter referred to as the
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"1972 Bonds"), for the purpose of providing funds to redeem and
retire on December 1, 1982, all of the then outstanding 1970 Bonds,
which 1972 Bonds, after the payment and retirement of the 1970 Bonds,
were issued on a parity of lien with the 1959 Bonds and all
subsequent issues of parity bonds above referred to and with each
other in accordance with the provisions of Section 13 of Ordinance
No. 773; and
WHEREAS, pursuant to Ordinance No. 1719 passed July 2,
1974, the City issued and sold $2,000,000 par value of "Water and
Sewer Revenue Bonds, 1974" (hereinafter referred to as the "1974
Bonds"), to obtain the funds with which to pay the cost of carrying
out a system or plan of additions to and betterments and extensions
of the waterworks utility of the City, including the system of
sewerage as a part thereof, the lien and charge upon the gross
revenues from the waterworks utility of the City, including the
system of sewerage as a part thereof, for the 1974 Bonds and any
additional bonds issued on a parity therewith being subordinate and
junior to the prior lien and charge upon such revenues for the 1959
Bonds, the 1960 Bonds, the 1961 Bonds, the 1964 Bonds, the 1965
Bonds, the 1966 Bonds, the 1967 Bonds, the 1970 Bonds (prior to
their payment and retirement on December 1, 1982) and the 1972
Bonds (after the payment and retirement of the 1970 Bonds on
December 1, 1982) ;- and
WHEREAS, pursuant to Ordinance No. 1886 passed December 21,
1976, the City issued and sold $2,025,000 par value of "Water and
Sewer Revenue Refunding Bonds, 1976" (hereinafter referred to as the
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"1976 Bonds"), for the purpose of obtaining a part of the funds with
which to refund, pay and retire on January 1, 1989, the outstanding
1974 Bonds of the City, the lien and charge upon the gross revenues
of the waterworks utility of the City, including the system of
sewerage as a part thereof, for the 1976 Bonds being subordinate
and junior to the prior lien and charge upon such revenues for all
of the outstanding bonds referred to in the immediately preceding
paragraph pertaining to the 1974 Bonds; and
WHEREAS, there are presently outstanding $118,000 par
value of 1959 Bonds which mature serially on August 1 in each of
the years 1978 through 1981, and all bear interest at the rate of
4.40% per annum; and
WHEREAS, there are presently outstanding $65,000 par
value of 1960 Bonds maturing serially on May 1 in each of the
years 1978 through 1982, a part of which 1960 Bonds bear interest
at the rate of 4.40% per annum, and the remainder of which 1960
Bonds bear interest at the rate of 4.20% per annum;,,and
WHEREAS, there are presently outstanding $100,000 par
value of 1961 Bonds which mature serially on December 1 in each of
the years 1982 through 1984, and all bear interest at the rate of
4.25% per annum; and
WHEREAS, there are presently outstanding $40,000 par
value of 1965 Bonds which mature serially on October 1 in each of
the years 1978 through 1981, and all bear interest at the rate of
3.75% per annum; and
WHEREAS, there are presently outstanding $625,000 par
value of 1966 Bonds which mature serially on June 1 in each of the
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years 1978 through 1986, a part of which 1966 Bonds bear interest
at the rate of 4.25% per annum and the remainder of which 1966 Bonds
bear interest at the rate of 4.375% per annum; and
WHEREAS, there are presently outstanding $235,000 par value
of 1967 Bonds which mature serially on July 1 in each of the years
1978 through 1986, a part of which 1967 Bonds bear interest at the
rate of 4.75% per annum and the remainder of which 1967 Bonds bear
interest at the rate of 5% per annum; and
WHEREAS, there are presently outstanding $1,000,000 par
value of 1970 Bonds but provision for the refunding, payment and
retirement of the principal only of which has been irrevocably
provided for from the investment proceeds received from the issuance
and sale of the 1972 Bonds leaving only interest on such 1970 Bonds
payable through December 1, 1982 (the call date for the payment
of the principal of such 1970 Bonds) not provided for by such
refunding; and
WHEREAS, there are presently outstanding $1,035,000 par
value of 1972 Bonds which mature serially on September 1 in each of
the years 1983 through 1991, all of which 1972 Bonds bear interest
at the rate of 5.75% per annum (the City having previously irrevocably
made provision for the payment of the interest on such 1972 Bonds
coming due up to and including September 1, 1982); and
WHEREAS, there are presently outstanding $2,020,000 par
value of 1976 Bonds which mature serially on July 1 in each of the
years 1985 through 1999, which 1976 Bonds bear interest at various
rates from 6.00% to 6.25% per annum, and as provided in Ordinance
No. 1886 and in the 1976 Bonds, the City reserved the right to redeem
the 1976 Bonds as a whole, or in part in inverse numerical order, on
July 1, 1986, or on any semiannual interest payment date thereafter,
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at 101% of par plus accrued interest to date of redemption, which
redemption price shall reduce 1/2 of to annually to par on or after
July 1, 1988; and
WHEREAS, the City Council has determined that it is in the
best interest of the City that all of such outstanding water and
sewer revenue bonded debt of the City be consolidated into a single
issue in order to modify debt service and reserve requirements,
to eliminate the junior lien position of the 1976 Bonds and to
modify covenants and other terms of the bonds to be refunded; and
WHEREAS, after due consideration it appears to the City
Council that in addition to the governmental purpose for refunding
the outstanding 1959 Bonds, 196G Bonds, 1961 Bonds, 1965 Bonds,
1966 Bonds, 1967 Bonds, 1970 Bonds (interest only), 1972 Bonds and
1976 Bonds as aforesaid, it also appears to the City Council that
(a) all of the outstanding 1959 Bonds may be refunded by providing
funds for the payment of the principal of and interest on such 1959
Bonds as the same become due up through August 1, 1981; (b) all of
the outstanding 1960 Bonds may be refunded by providing funds for the
payment of the principal of and interest on such 1960 Bonds as the
same become due up through May 1, 1982; (c) all of the outstanding
1961 Bonds may be refunded by providing funds for the payment of
the principal of and interest on such 1961 Bonds as the same become
due up through December 1, 1984; (d) all of the outstanding 1965
Bonds may be refunded by providing funds for the payment of the
principal of and interest on such 1965 Bonds as the same become due
up through October 1, 1981;:(e) all of the outstanding 1966 Bonds
may be refunded by providing funds for the payment of the principal
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of and interest on such 1966 Bonds as the same shall become due up
through June 1, 1986; (f) all of the outstanding 1967 Bonds may be
refunded by providing funds for the payment of the principal of and
interest on such 1967 Bonds as the same become due up through July 1,
1986; (g) all of the outstanding 1970 Bonds may be refunded by
providing funds for the payment of the interest only on such 1970
Bonds until December 1, 1982, at which time all of the principal of
such 1970 Bonds will be paid and retired from the invested proceeds
of the 1972 Bonds; (h) all of the outstanding 1972 Bonds may be
refunded by providing funds for the payment of the principal of and
interest on such 1972 Bonds as the same become due beginning March 1,
1983, up through September 1, 1991; and (i) all of the outstanding
1976 Bonds may be refunded by. -the payment of the principal of and
interest on such 1976 Bonds until January 1, 1997, at which time all
of the 1976 Bonds which mature on July 1 in each of the years 1997
through 1999 will be called, paid and retired by the issuance and sale
of refunding bonds so that a saving will be effected by the difference
between the principal and interest costs over the life of the refunding
bonds and the principal and interest costs over the life of such
outstanding 1959 Bonds, 1960 Bonds, 1961 Bonds, 1965 Bonds, 1966
Bonds, 1967 Bonds, 1970 Bonds (interest only), 1972 Bonds and 1976
Bonds; and
WHEREAS, ' in order to effect such refunding in the manner
that will be most advantageous to the City, its water and sewer
ratepayers and its taxpayers, it is hereby found necessary and
advisable that certain "Acquired Obligations" (hereinafter identified)
bearing interest and maturing at such time or times as necessary to
accomplish the refunding as aforesaid be purchased out of a portion
of the proceeds of the sale of the bonds herein authorized (herein-
after called the "Bonds") and other money of the City legally
available therefor; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, DO
ORDAIN, as follows:
Section 1. Definitions. As used in this ordinance the
following words shall have the following meanings:
(a) "Bond Fund" shall mean the special fund of the City
known as the "Water and Sewer Revenue Bond Fund, 1977," created by
this ordinance for the payment of the principal of and interest on
the Bonds and all Future Parity Bonds of the City hereafter issued.
(b) "Bonds" shall mean the $4,805,000 par value of "Water
and Sewer Revenue Refunding and Construction Bonds, 1977," of the
City authorized by and to be issued for the purposes provided in and
pursuant to this ordinance.
(c) "1959 Bonds" shall mean the outstanding "Water and
Sewer Revenue Bonds, 1959," of the City issued under date of August 1,
1959, pursuant to Ordinance No. 773 of which $118,000 are outstanding.
(d) "1960 Bonds" shall mean the outstanding "Water and
Sewer Revenue Bonds, 1960," of the City issued under date of May 1,
1960, pursuant to Ordinance No. 814 of which $65,000 are outstanding.
(e) "1961 Bonds" shall mean the outstanding "Water and
Sewer Revenue Bonds, 1961," of the City issued under date of December
1, 1961, pursuant to Ordinance No. 909 of which $100,000 are
outstanding.
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(f) "1965 Bonds" shall mean the outstanding "Water and
Sewer Revenue Bonds, 1965," of the City issued under date of October 1,
1965, pursuant to Ordinance No. 1141 of which $40,000 are outstanding.
(g) "1966 Bonds" shall mean the outstanding "Water and
Sewer Revenue Bonds, 1966," of the City issued under date of June 1,
1966, pursuant to Ordinance No. 1207 of which $625,000 are outstanding.
(h) "1967 Bonds" shall mean the outstanding "Water and
Sewer Revenue Bonds, 1967," of the City issued under date of July 1,
1967, pursuant to Ordinance No. 1314 of which $235,000 are outstanding.
(i) "1970 Bonds" shall mean the outstanding "Water and
Sewer Revenue Bonds, 1970," of the City issued under date of
December 1, 1970, pursuant to Ordinance No. 1506 of which $1,000,000
are outstanding, provision for the refunding, payment and retirement
of the principal only thereof on December 1, 1982, has been irrevocably
provided for out of the investment proceeds of the 1972 Bonds, leaving
only interest thereon not covered by such refunding operation and
reference herein to the refunding of such 1970 Bonds shall be deemed
to include only the interest payable thereon.
U) "1972 Bonds" shall mean the outstanding "Water and
Sewer Revenue Refunding Bonds, 1972," of the City issued under date
of March 1, 1972, pursuant,to Ordinance No. 1603 of which $1,035,000
are outstanding.
(k) "1976 Bonds" shall mean the outstanding "Water and
Sewer Revenue Refunding Bonds, 1976," of the City issued under date
of December 1, 1976, pursuant to Ordinance No. 1886 of which
$2,020,000 are outstanding.: '
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(1) "City" shall mean the City of Edmonds, Washington, a
duly organized and existing noncharter code city under the laws of
the State of Washington.
(m) "Future Parity Bonds" shall mean all revenue bonds
of the City issued after the date of the issuance of the Bonds and
having a lien upon the Revenue of the System for the payment of the
principal thereof and interest thereon equal to the lien upon such
Revenue for the payment of the principal of and interest on the Bonds.
(n) "Operating and Maintenance Expenses" shall mean all
reasonable expenses incurred by the City in causing the System to
be operated and maintained in good repair, working order and condition,
but shall not include any depreciation or taxes or charges in lieu
of taxes levied or imposed by the City.
(o) "Outstanding Bonds" shall when used hereinafter be
deemed to collectively include all of the outstanding 1959 Bonds,
1960 Bonds, 1961 Bonds, 1965 Bonds, 1966 Bonds, 1967 Bonds, 1970
Bonds, 1972 Bonds and 1976 Bonds.
(p) "Principal and Interest Account" shall mean the
account of that name created in the Bond Fund for the payment of
the principal of and interest on the Bonds and all Future Parity
Bonds of the City payable out of such fund.
(q) "1977 Refunding Fund" shall mean that -special fund
of the City so designated and created by this ordinance to carry
out the refunding operation.
(r) "Reserve Account" shall mean the account of that
name created in the Bond Fund by this ordinance for the purpose of
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securing the payment of the principal of and interest on the Bonds
and all Future Parity Bonds of the City payable out of such fund.
(s) "Revenue of the System" shall mean all the earnings
and revenue received by the System from any source whatsoever,
except general ad valorem taxes, ULID Assessments, proceeds from
the sale of City property, and bond proceeds.
(t) "System" shall mean the combined water supply and
distribution system and sanitary sewage disposal system of the City
as the same may be added to, improved and extended for as long as
any of the Bonds and any Future Parity Bonds are outstanding.
(u) "Term Bond Maturity Year" shall mean any maturity
year in which the outstanding amount of revenue bonds payable out
of the Bond Fund are scheduled to mature (regardless of any
reservation of rights of redemption prior to maturity) is more
than 1.25 times tree average annual principal maturity of the bonds
payable out of such Fund for the three years immediately preceding
such Term Bond Maturity Year.
(v) "Term Bonds" shall mean the outstanding bonds payable
out of the Bond Fund maturing in any Term Bond Maturity Year.
(w) "ULID" shall mean utility local improvement district.
(x) "ULID Assessments" shall mean the assessments
levied in such ULID of the City which may hereafter be created
pursuant to state law and shall include installments thereof and
interest and any penalties thereon.
Section 2. Plan and System Adopted. It is hereby
found and declared that the public health and welfare require and
099C
it is in the best interests of the inhabitants of the City that
certain water system improvements be undertaken within the City,
and the City, therefore, hereby specifies and adopts a plan or
system for the acquisition and construction of additions and
betterments to and extensions and improvements of the System to
consist of the following:
(a) There shall be constructed a 3 million
gallon steel storage reservoir at the 5 Corners
tank site, including pump house, three 25 h.p. pumps,
valves, miscellaneous piping, flow controls and
telemetering.
(b) There shall be replaced and installed approxi-
mately 3-1/2 miles of water main consisting of 8"
or 6" ductile iron in various City streets as set
forth in Exhibit "A" attached hereto and by this
reference made a part hereof.
(c) There shall be installed 23 fire hydrants,
including valves, tees and other fittings.
There shall be included in the foregoing all necessary wyes,
valves, couplings, connections and appurtenances, together with all
work as may be incidental to and necessary to the foregoing construction
and installation.
The City shall acquire all property, both real and personal
or any interest therein, equipment, rights -of -way, easements and
franchises necessary to carry -out said plan, which is all as more
particularly set forth in reports, maps, plans and specifications
prepared by the City Engineer.
The City Council may make such changes in the details of
said plan, either prior to or during the course of actual construction,
which may be found necessary and desirable as long as such changes do
not substantially affect or;change the main general part of said
plan or the services to be rendered thereby.
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Section 3. Life Expectancy of Improvements. The life
of the additions, betterments and extensions set forth in Section 2
of this ordinance is hereby declared to be more than 22 years.
Section 4. Estimated Cost and Financing of Improvements.
The estimated cost of the acquisition, construction and installation
of the above described additions and betterments to and extensions and
,improvements of the System, including the discount on the purchase
price of the Bonds allocated thereto, is hereby declared to be, as
near as may be, the sum of $1,000,000 and shall be paid from the
proceeds received from the issuance and sale of the Bonds allocated
to new construction, being the last numbered $1,000,000 par value of
such Bonds.
Section 5. Declaration of Adequacy of Revenues. The
Revenue of the System anticipated to be derived from the operation
and maintenance of the System will, in the judgment of the City
Council, be more than sufficient to meet the Operating and Maintenance
Expenses and to permit the setting aside into the ,Bond Fund out of
the Revenue of the System of sufficient amounts to pay the interest
on the Bonds herein authorized to be issued as such interest becomes
due and payable and to pay and redeem all of such Bonds at maturity.
Section 6. Provision for Issuance of Bonds. For the
purpose of providing a part of the money required (a) to carry out
the plan or system for the acquisition and construction of certain
additions and betterments to and extensions and improvements of the
System herein adopted and hereby ordered to be carried out, and
(b) to pay the principal of and interest on:
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(1) The 1959 Bonds coming due up to and including
August 1, 1981;
(2) The 1960 Bonds coming due up to and including
May 1, 1982;
(3) The 1961 Bonds coming due up to and including
December 1, 1984;
(4) The 1965 Bonds coming due up to and including
October 1, 1981;
(5) The 1966 Bonds coming due up to and including
June 1, 1986;
(6) The 1967 Bonds corning due up to and including
July 1, 1986;
(7) The 1970 Bonds (interest only) coming due up to
and including December 1, 1982.
(8) The 1972 Bonds coming due beginning March 1,
1983, up to and including September 1, 1991; and
(9) The 1976 Bonds coming due up to and including
January 1, 1997, and to redeem and retire on January 1,
1997, the outstanding 1976 Bonds maturing after January 1,
1997;
the City shall issue the Bonds in the aggregate principal amount of
$4,805,000.
The Bonds shall be designated "Water and Sewer Revenue
Refunding and Construction Bonds, 1977"-(Herein defined as the "Bonds");
shall be in the denomination of $5,000 each; shall be dated November 1,
1977; shall bear interest payable on July 1, 1978, and semiannually
thereafter on the first days of January and July of each year,
interest to maturity to be evidenced by coupons to be attached to
the Bonds with full obligation on the part of tree City to pay interest
at the Bond rate or rates from and after the Bond maturity dates until
the Bonds with interest are paid in full. Both principal of and
interest on the Bonds shall be payable in•lawful money of the United
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States of America at the office of the Director of Finance of th'e
City or, at the option,of the holders thereof, at either fiscal
agency of the State of Washington in the cities of Seattle,
Washington, or New York, New York. The Bonds shall be payable
solely from the Bond Fund and shall be a valid claim of the holders
thereof only as against the Bond Fund and the fixed amount of the
Revenue of the System and ULID Assessments pledged to such fund and
shall not be a general obligation of the City. The Bonds shall be
numbered, bear interest and mature in accordance with the following
schedule;
Bond
Numbers
Interest
(Inclusive)
Amounts
Rates
Maturities
1
to
28
$140,000
5.80%
January
1,
1981
29
to
58
150,000
5.80%
January
1,
1982
59
to
90
160,000
5.80%
January
1,
1983
91
to
123
165,000
5.80%
January
1,
1984
124
to
159
180,000
5.80%
January
1,
1985
160
to
197
190,000
5.80%
January
1,
1986
198
to
237
200,000
5.80%
January
1,
1987
238
to
279
210,000
5.80%
January
1,
1988
280
to
324
225,000
5.80%
January
1,
1989
325
to
372
240,000
5.80%
January
1,
1990
373
to
423
255,000
5.90%
January
1,
1991
424
to
477
270,000
6.00%
January
1,
1992
478
to
534
285,000
6.00%
January
1,
1993
535
to
595
305,000
6.109
January
1,
1994
596
to
659
320,000
6.10%
January
1,
1995
660
to
728
345,000
6.10%
January
1,
1996
729
to
801
365,000
6.20%
January
1,
1997
802
to
879
390,000
6.20%
January
1,
1998
880
to
961
410,000
6.20%
January
1,
1999
Section 7. Option for Prior Redemption. Bonds
numbered 1 to 324, inclusive, maturing January 1, 1981, through
January 1, 1989, are issued without the right of the City to redeem
the same prior to their respective maturity dates.
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The City reserves the right to redeem Bonds numbered 325
to 961, inclusive, maturing January 1, 1990, through January 1,
1999, as a whole, or in part in inverse numerical order, from
money derived from any source, at the following times and prices
if redeemed on the following dates, plus accrued interest to date
of redemption in each case:
On January 1, 1989, and July 1, 1989, at 10200-
On January 1, 1990, and July 1, 1990, at 101-1/2%
On January 1, 1991, and July 1, 1991, at 101%
On January 1, 1992, and July 1, 1992, at 100-1/2%
On January 1, 1993, and thereafter, at 100% (Par)
Notice of any call for the redemption of any of the Bonds
prior to their respective maturity dates shall be published once
in the official newspaper of the City not less than 30 nor more
than 45 days prior to the interest coupon due date on which the
Bonds would be redeemed. Notice of such call for redemption shall
also be mailed to Seattle -Northwest Securities Corporation at its
principal place of business in Seattle, Washington, or its successor,
not less than 30 nor more than 45 days prior to the interest coupon
due date upon which the Bonds would be redeemed. In addition,
such redemption notices shall also be.mailed to Moody's Investors
Service, Inc., and Standard & Poor's Corporation at their offices
in New York, New York, but such notices shall not be a condition
precedent to any such redemption. Interest on any Bonds so called
for redemption shall cease on the date fixed for such redemption
upon payment of the call price into the Bond Fund.
The City further reserves the right to purchase any or all
of the Bonds in the open market at any time at a price not in excess
of the call price applicable at the next succeeding call date.
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Section 8. Establishment of Bond Fund and Refundin
Operation. There is hereby created and established in the office
of the Director of Finance of the City a special fund to be known
and designated as the "Water and Sewer Revenue Bond Fund, 1977"
(herein defined as the "Bond Fund"), which fund is to be drawn upon
for the sole purpose of paying the principal of and interest on the
Bonds and any Future Parity Bonds from and after the date thereof.
Such fund is hereby divided into two accounts, namely, a Principal
and Interest Account and a Reserve Account. There is hereby also
created and established in the office of the Director of Finance
of the City an additional fund to be known and designated as the
"1977 Refunding Fund." Immediately upon receipt of payment in full
for the Bonds, the accrued interest received, if any, shall be
deposited in the Principal and Interest Account in the Bond Fund.
$980,000 of the principal proceeds received, being from the issuance
of the last numbered $1,000,000 par value of the Bonds, shall be
deposited in the r ]c �xlc C`c r.��r crn lic Fund of the City and used
to carry out the improvements specified and adopted in Section 2
hereof. The balance of the principal proceeds received from the
issuance of the Bonds shall be deposited in the 1977 Refunding Fund
and an amount equal to the accrued interest on the Outstanding
Bonds from the last principal and interest payment dates of such
Outstanding Bonds.to the date of delivery of the Bonds to the
purchaser thereof, and an amount of principal, being a total of
$450,000, shall be transferred from the principal and interest and
reserve accounts in the respective bond funds for the Outstanding
Bonds and deposited in the 1977 Refunding Fund. The money in the
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1977 Refunding Fund shall be used immediately upon the receipt
thereof to discharge the obligations of the City under Ordinance
No. 773 passed July 7, 1959, authorizing the issuance of the 1959
Bonds, Ordinance No. 814 passed May 3, 1960, authorizing the issuance
of the 1960 Bonds, Ordinance No. 909 passed November 21, 1961,
authorizing the issuance of the 1961 Bonds, Ordinance No. 1141
passed September 21, 1965, authorizing the issuance of the 1965
Bonds, Ordinance No. 1207 passed May 17, 1966, authorizing the
issuance of the 1966 Bonds, Ordinance No. 1314 passed July 5, 1967,
authorizing the issuance of the 1967 Bonds, Ordinance No. 1506
passed October 20, 1970, authorizing the issuance of the 1970 Bonds,
Ordinance No. 1603 passed June 20, 1972, authorizing the issuance
of the 1972 Bonds and Ordinance No. 1$86 passed December 21, 1976,
authorizing the issuance of the 1976 Bonds by providing for the
payment as hereinafter set forth in this section of the principal
of and interest on said Outstanding Bonds. To the extent practicable
the City shall discharge such obligations by the pVrchase of Federal
Land Bank Bonds and United States Treasury Certificates of
Indebtedness, Notes and Bonds - state and local government series
(commonly referred to as "book entries" [BE]) ("Acquired Obligations")
bearing such interest and maturing as to principal and interest in
such amounts and at such times so as to provide the money required
to pay (a) the principal of and interest on the 1959 Bonds as the
same shall become due up to and including August 1, 1981; (b) the
principal of and interest on the 1960 Bonds as the same shall become
due up to and including May; 1, 1982; (c) the principal of and interest
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on the 1961 Bonds as the same shall become due up to and including
December 1, 1984; (d) the principal of and interest on the 1965
Bonds as the same shall become due up to and including October 1,
1981; (e) the principal of and interest on the 1966 Bonds as the
same shall become due up to and including June 1, 1986; (f) the
principal of and interest on the 1967 Bonds as the same shall become
due up to and including July 1, 1986; (g) the interest only on the
1970 Bonds as the same shall become due up to and including December 1,
1982; (h) the principal of and interest on the 1972 Bonds as the
same shall become due beginning March 1, 1983, up to and including
September 1, 1991; and (i) the principal of and interest on the 1976
Bonds as the same shall become due up to and including January 1,
1997, and to redeem and retire on January 1, 1997, all outstanding
1976 Bonds maturing on July 1 in each of the years 1997 through 1999.
Such "Acquired Obligations" are more particularly described in the
proposal of Seattle -Northwest Securities Corporation hereinafter
referred to and are set forth in Schedule "A" attached to the Agreement
hereinafter referred to and attached hereto as Exhibit "B."
Such "Acquired Obligations" and a beginning cash balance
of $^ 4-6. r"' from the proceeds of the sale of the Bonds
shall be irrevocably deposited with Rainier National Bank, Saattle,
Washington (hereinafter called the "Refunding Trustee"). Any amounts
described in this section which are not provided for in full by the
purchase and deposit of the "Acquired Obligations" described in
this section shall be provided for by the irrevocable deposit of a
portion of the proceeds of sale of the Bonds or other money of the
City with the aforesaid Refunding Trustee.
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All the money received as principal of or interest on'such
"Acquired Obligations" shall be held by the Refunding Trustee for
the credit of the City for the 1977 Refunding Fund, shall be held
in trust and shall be used for the sole purpose of paying the
Outstanding Bonds as aforesaid.
Any money remaining in the 1977 Refunding Fund after the
payment and retirement in full of the Outstanding Bonds as aforesaid
shall be transferred and paid into the Principal and Interest Account
in the Bond Fund. All of such "Acquired Obligations" purchased as
a part of the refunding plan are irrevocably dedicated to the purpose
set forth in this ordinance, and such investments or the earnings or
the proceeds therefrom may be used for no other purpose, nor may any
of such investments be liquidated prior to maturity.
Section 9. Call for Redemption of 1976 Bonds.
The City
hereby irrevocably calls for redemption on January 1, 1997, all of the
outstanding 1976 Bonds maturing after such call date at a price of
par plus accrued interest to such date of redemption. Such call
for redemption shall be irrevocable after the delivery of the Bonds
to the initial purchaser thereof.
The Refunding Trustee, on behalf of the Director of Finance
of the City, is hereby authorized and directed to give notice of the
redemption of the 1976 Bonds in accordance with the provisions of
Ordinance No. 1886 pertaining to the 1976 Bonds.
Section 10. RefundingI Trustee's Duties and Agreement.
The Refunding Trustee is hereby authorized and directed to pay the
principal of and interest on the Outstanding Bonds as aforesaid when
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due from the "Acquired Obligations" and money deposited with the,
Refunding Trustee pursuant to Section 8 of this ordinance. All
"Acquired Obligations" and the money deposited with the Refunding
Trustee and any income therefrom shall be held and applied in
accordance with the provisions of the applicable bond ordinance
pertaining to each issue of the Outstanding Bonds and this ordinance
and with the statutes of the State of Washington.
All necessary and proper fees, compensation and expenses
of the Refunding Trustee for the Bonds and all other costs incidental
to the setting up of the escrow to accomplish the refunding of the
Outstanding Bonds, including but not limited to an allocable portion
of bond counsel's fees chargeable to such escrow (60%) for the
refunding portion of the Bonds and an escrow computation fee to
Seattle -Northwest Securities Corporation, shall be paid out of the
principal proceeds of the Bonds. The costs relating to the issuance
and delivery of the Bonds, including bond printing and an allocable
portion of bond counsel's fees chargeable to the preparation of the
legal proceedings and furnishing an approving legal opinion covering
the refunding portion of the Bonds (40%), shall be paid by Seattle -
Northwest Securities Corporation as purchaser of the Bonds. The
allocable portion of bond counsel's fee chargeable to the new money
portion of the Bonds shall be paid by the City out of the principal
proceeds of the new money portion of the Bonds. The proper officers
and agents of the City are directed to obtain from the Refunding
Trustee an agreement setting forth the duties, obligations and
responsibilities of the Refunding Trustee in connection with the
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redemption and retirement of the Outstanding Bonds as provided
herein and stating that such provisions for the payment of the fees,
compensation and expenses of such Refunding Trustee are satisfactory
to it.
In order to carry out the purposes of this ordinance, the
Mayor and City Clerk of the City are authorized and directed to
execute and deliver to Rainier National Bank, Seattle, Washington,
an agreement substantially in the form attached hereto marked
Exhibit "B" and by this reference thereto made a part of this
ordinance.
Section 11. Deposits to Bond Fund and Bond Fund
Considerations. So long as Bonds are outstanding against the
Bond Fund, the Director of Finance of the City shall set aside and
pay into the Bond Fund out of the Revenue of the System a fixed
amount, without regard to any fixed proportion, namely:
(a) Into the Principal and Interest account,
at least 20 days prior to each principal payment
date and each interest payment date, an amount
sufficient, together with any ULID Assessment
collections deposited therein in connection with
any Future Parity Bonds hereafter issued, to pay the
principal amount maturing on each maturity date of
the Bonds and any Future Parity Bonds hereafter
issued and outstanding and an amount sufficient
to pay the interest payable on the Bonds and such
Future Parity Bonds on such interest payment date;
and
(b) Into the Reserve Account, in substantially
equal annual payments, such amounts so that by
no later than November 1, 1982, there shall be on
deposit in such Reserve Account a total reserve at
least equal to the average annual debt service
requirements, both principal and interest, of the
Bonds, excluding the principal of any Term Bonds.
The Reserve Account shall be maintained in such total
average annual debt service required reserve amount, except for
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withdrawals therefrom as authorized herein, at all times so long'
as any of the Bonds is outstanding, PROVIDED, that when the total
amount in the Bond Fund shall equal the total amount of principal
and interest for all outstanding bonds payable out of the Bond
Fund to the last maturity thereof, no further payment need be made
into the Bond Fund, and PROVIDED, FURTHER, that the amount in such
Reserve Account may be reduced at any time to an amount not less
than such average annual debt service requirements for the Bonds
then outstanding.
In the event that there shall be a deficiency in the
Principal and Interest Account in the Bond Fund to meet maturing
installments of either principal or interest, as the case may be,
such deficiency shall be made up from the Reserve Account by the
withdrawal of cash therefrom for that purpose. Any deficiency
created in the Reserve Account by reason of any such withdrawal
shall then be made up from the money from the Revenue of the System
and/or ULID Assessments, if any, payable into the Bond Fund first
available after making necessary provision for the required payments
into the Principal and Interest Account. The money in the Reserve
Account shall otherwise be held intact and may be applied against
the last outstanding bonds payable out of the Bond Fund.
All money in the Bond Fund not needed to meet the payments
of principal and interest when due may be kept on deposit in the
official bank depository fo the City or in any national bank or may
be invested in any legal investment. Interest on any such investment
or on such bank account shall be deposited in and become a part of
the Bond Fund.
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The City Council and corporate authorities of the City
hereby declare that in fixing the amounts to be paid into the Bond
Fund they have considered and had due regard for the Operating and
Maintenance Expenses and have not set aside into the Bond Fund a
greater amount or proportion of the Revenue of the System than in
their judgment will be available over and above the Operating and
Maintenance Expenses, and that no portion of the Revenue of the
System has been previously pledged for any other indebtedness except
for payment of the Outstanding Bonds, provision for the retirement
and payment of which is herein made.
Section 12. Lien Position of Bonds. All Revenue
of the System is hereby pledged to the payments required to be made
into the Bond Fund, and the Bonds shall constitute a charge and lien
upon such Revenue prior and superior to all other charges and liens
whatsoever, excluding Operating and Maintenance Expenses, except
that the charge and lien upon such Revenue for the Bonds shall be
on a parity with the charge and lien upon the same and upon any ULID
Assessments hereafter pledged to be paid into the Bond Fund for any
Future Parity Bonds, the charge and lien upon such Revenue for the
1959 Bonds, 1960 Bonds, 1961 Bonds, 1965 Bonds, 1966 Bonds, 1967
Bonds, 1970 Bonds and 1972 Bonds being defeased as a matter of law
immediately upon deposit with the Refunding Trustee of the money
and book entry "Acquired Obligations" (being direct obligations of
the United States of America and equivalent to cash) which are hereby
pledged first to the payment of such 1959 Bonds, 1960 Bonds, 1961
Bonds, 1965 Bonds, 1966 Bonds,, 1967 Bonds, 1970 Bonds and 1972 Bonds
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and the charge and lien upon such Revenue for the 1976 Bonds being
defeased pursuant to the provisions of Section 10 of Ordinance No.
1886 immediately upon deposit with the Refunding Trustee of the
"Acquired Obligations" (the Federal Land Bank Bonds being pledged
solely to the payment of such 1976 Bonds and to be used with the
remaining book entries), all as provided herein.
Section 13. Covenants. The City hereby covenants and
agrees with the owner and holder of each Bond at any time outstanding
as follows;
(a) That it will establish, maintain and collect
such rates and charges for water and sanitary sewage
disposal service so long as any Bonds and any Future
Parity Bonds are outstanding which, together with
other miscellaneous Revenue of the System (excluding
ULID Assessments), will provide amounts annually at
least equal to 1.25 times the portion of annual debt
service, excluding the principal of any Term Bonds, on
the Bonds and Future Parity Bonds actually paid from
such Revenue of the System, and not from ULID Assessments,
after payment of Operating and Maintenance Expenses
(herein called the "Coverage Requirement"). In
determining the amount of debt service subject to
coverage, there shall be deducted from the annual
principal and interest required to be paid each year,
an amount equal to the percentage of the debt service
for each year on each issue of outstanding Future Parity
Bonds and the Bonds equal to.the percentage arrived at
by dividing the original total amount of the ULID
Assessments specifically peldged to the Bond Fund in
that issue by the original total principal amount of
such issue. To simplify, where ULIDs are involved,
only the debt service on that portion of any Future
Parity Bond issue not covered by ULID Assessments must
be subject to the 25% Coverage Requirement.
(b) That it will at all times maintain and keep
the System in good repair, working order and condition,
and also will at all times operate such System and the
business in connection therewith in an efficient manner
and at a reasonable cost.
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(c) That it will not sell, lease, mortgage or in
any manner encumber or dispose of all the property of
the System unless provision is made for payment into
the Bond Fund of a sum sufficient to pay the principal
of and interest on all bonds payable out of the Bond
Fund at any time outstanding, and that it will not sell,
lease, mortgage, or in any manner encumber or dispose
of any part of the property of said System that is
used, useful and material to the operation thereof,
unless provision is made for replacement thereof, or
for payment into the Bond Fund of the total amount of
Revenue received which shall not be less than an amount
which shall bear the same ratio to the amount of
outstanding bonds payable out of the Bond Fund as the
Revenue available for debt service for such outstanding
bonds for the twelve months preceding such sale, lease,
encumbrance or disposal from the portion of the System
sold, leased, encumbered or disposed of bears to the
Revenue available for debt service for such bonds from
the entire System for the same period. Any such money
so paid into the Bond Fund shall be used to retire such.
outstanding bonds at the earliest possible date.
(d) That it will, while any of the Bonds remains
outstanding, keep proper and separate accounts and
records in which complete and separate entries shall be
made of all transactions relating to its System, and
it will furnish any subsequent holder or holders of the
Bonds if the Bonds shall be owned by other than a Fund
of the City, at the written request of such holder or
holders, complete operating and income statements of
said System in reasonable detail covering any calendar
year, showing the financial condition of the water and
sewer departments and compliance with the terms and
conditions of this ordinance, not more than 120 days
after the close of such calendar year, and it will grant
any holder or holders of at least 25% of the outstanding
Bonds the right at all reasonable times to inspect the
entire System and all records, accounts and data of the
City relating thereto. Upon request of any holder of any
of said Bonds, it will also furnish to such holder a
copy of the most recently completed audit of the City's
accounts by the State Auditor of Washington or such other
audit as is authorized by law in lieu thereof.
(e) That it will not furnish water or sanitary
sewage disposal service to any customer whatsoever
free of charge and will promptly take legal action to
enforce collection of all delinquent accounts.
Q►•E:M
(f) That it will carry the types of insurance on
its System properties in the amounts normally carried
by private water and sewer companies engaged in the
operation of water and sewerage systems, and the cost
of such insurance shall be considered a part of
Operating and Maintenance Expenses. If, as, and when,
the United States of America or some agency thereof
shall provide for War Risk Insurance, the City further
agrees to take out and maintain such insurance on all
or such portions of said System on which such War Risk
Insurance may be written in an amount or amounts to
cover adequately the value thereof.
(g) That it will pay all Operating and Maintenance
Expenses and otherwise meet the obligations of the
City as herein set forth.
(h) That if a ULID is ever established hereafter
in the connection with the issuance of Future Parity
Bonds and the ULID Assessments therefrom pledged to be
paid into the Bond Fund, the City will promptly collect
all Assessments levied therein. Such Assessments may be
used to pay the principal of and interest on any bonds
payable out of the Bond Fund without said Assessments
being particularly allocated to the payment of principal
and interest on any particular series of such Future
Parity Bonds, including the Fonds.
(i) That it will not make any use of the proceeds
of sale of the Bonds or any other funds of the City
which may be deemed to be proceeds of such Bonds pursuant
to Section 103(c)(2) of the Internal Revenue Code, as
amended, and the applicable Regulations thereunder which,
if such use had been reasonably expected on the date of
delivery of the Bonds to the initial purchaser thereof,
would have caused the Bonds to be "Arbitrage Bonds"
within the meaning of said section and said Regulations.
(j) That it will use, pay out and distribute the
Revenue of the System, other than money deposited in
bond redemption funds, in the following order of priority:
(_1) To pay Operating and Maintenance Expenses.
(2) To meet the required debt service payments,
including Reserve Account accumulation in the Bond Fund,
on the Bonds and any Future Parity Bonds hereafter
issued.
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(3) To meet the required debt service on any
water and sewer revenue bonds issued having a charge
and lien on the Revenue of the System junior to the
Bonds; to redeem and retire any then outstanding water
and sewer revenue bonds or to purchase any or all of
those bonds in the open market as provided in this
ordinance; to make necessary betterments and replace-
ments of or repairs, additions or extensions to the
System; or for any other lawful purpose.
Section 14. Bond Form. The Bonds shall be in substanti-
ally the following form:
No.
UNITED STATES OF AMERICA
STATE OF WASHINGTON
CITY OF EDMONDS
$5,000
WATER AND SEWER REVENUE REFUNDING
AND CONSTRUCTION BOND, 1977
The City of Edmonds, State of Washington (hereinfter
called the "City"), for value received promises to pay
to bearer on the FIRST DAY OF JANUARY, 19 , the principal
sum of
FIVE THOUSAND DOLLARS
together with interest thereon at the rate of
per annum, payable on July 1,-1978, and semiannually
thereafter on the first days of January and July of each
year, upon presentation and surrender of the attached
interest coupons as they severally mature up to the bond
maturity date and with full obligation on the part of the
City to pay interest at the same rate from and after the
bond maturity date until this bond with interest is paid
in full, or funds are available in the "Water and Sewer
Revenue Bond Fund, 1977" (hereinafter called the "Bond
Fund"), for payment in full. Both principal of and
interest on this bond are payable in lawful money of the
United States of America at the office of the Director
of Finance of the City or, at the option of the holder
hereof, at either fiscal agency of the State of Washington
in the Cities of Seattle, Washington, or New York, New
York, solely out of. the special fund created by Ordinance
No. 1957, , and referred to herein as the "Bond Fund,"
into which fund the City hereby irrevocably binds itself
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to pay certain fixed amounts out of the gross revenues
of the waterworks utility of the City, including the
sanitary sewage disposal system as a part thereof, now
belonging to or which may hereafter belong to the City,
including all additions, extensions and betterments
thereof now or at any time made or constructed (herein-
after referred to as the "System"), without regard to
any fixed proportion, namely, amounts sufficient, together
with utility local improvement district assessments
hereinafter referred to, to pay the principal of and
interest on this issue of bonds as they respectively
due and to accumulate a reserve, all at the
times and in the manner set forth in Ordinance No. 1957
(hereinafter referred to as the "Bond Ordinance"). The
bonds are not a general obligation of the City.
The gross revenues from the System are hereby pledged
for the payment of the bonds of this issue at any time
outstanding, both principal and interest, and such
payment and pledge shall constitute a charge and lien
upon such gross revenues prior and superior to all other
charges and liens whatsoever, excluding charges for
operation and maintenance of such System as defined in
the Bond Ordinance, except that the charge and lien upon
such gross revenues for the bonds of this issue shall be
on a parity with the charge and lien upon the same and
any utility local improvement district assessments here-
after collected and pledged to be paid into the Bond Fund
for any additional revenue bonds hereafter issued on a
parity therewith in accordance with the provisions of
Section 16 of the Bond Ordinance.
This bond is one of a total issue of $4., 805, 000 par
value of bonds, all of like date, tenor and effect,
except as to maturities, interest rates and option of
redemption, all payable from the Bond Fund and all issued
by the City under and in pursuance of the laws of the
State of Washington, particularly Chapter 138, Laws of
1965, lst Ex. Ses., as amended, known as the "Refunding
Bond Act" (RCW Chapter 39.53), and the Bond Ordinance
for the purpose of providing a part of the funds (a) to
carry out the plan or system for the acquisition and
construction of certain additions and betterments to and
extensions and improvements of the System specified and
adopted and ordered to be carried out by the Bond
Ordinance, and (b) to refund, pay and retire all of its
outstanding "Water and Sewer Revenue Bonds, 1959," dated
August 1, 1959, "Water and Sewer Revenue Bonds, 1960,"
dated May 1, 1960, "Water and Sewer Revenue Bonds, 1961,"
dated December 1, 1961, "Water and Sewer Revenue Bonds,
1965," dated October 1, 1965, "Water and Sewer Revenue
Bonds, 1966," dated June 1, 1966, "Water and Sewer Revenue
-31-
Bonds, 1967," dated July 1, 1967, "Water and Sewer Revenue
Bonds, 1970," dated December 1, 1970 (interest only),
"Water and Sewer Revenue Refunding Bonds, 1972," dated
March 1, 1972, and "Water and Sewer Revenue Refunding Bonds,
1976," dated December 1, 1976, all as provided in the Bond
Ordinance, and is issued in full compliance with the
ordinances of the City and the Constitution and laws of
the State of Washington. Reference is made to the Bond
Ordinance as more fully describing the covenants with and
rights of holders of bonds of this issue.
Bonds numbered 1 to 324, inclusive, maturing January
1, 1981, through January 1, 1989, are issued without
the right of the City to redeem the same prior to their
respective maturity dates.
The City reserves the right to redeem bonds numbered
325 to 961, inclusive, maturing January 1, 1990, through
January 1, 1999, as a whole, or in part in inverse
numerical order, from money derived from any source, at
the following times and prices if redeemed on the follow-
ing dates, plus accrued interest to date of redemption
in each case:
On January 1, 1989, and July 1, 1989, at 102%
On January 1, 1990, and July 1, 1990, at 101-1/2%
On January 1, 1991, and July 1, 1991, at 101%
on January 1, 1992, and July 1, 1992, at 100-1/2%
On January 1, 1993, and thereafter at 100% (Par)
Notice of any call for the redemption of any of the
bonds prior to their respective maturity dates shall be
published once in the official newspaper of the City
not less than 30 nor more than 45 days prior to the
interest coupon due date on which the bonds would be
redeemed. Notice of such call for redemption shall
also be mailed to Seattle -Northwest Securities Corporation
at its principal place of business in Seattle, Washington,
or its successor, not less than 30 nor more than 45 days
prior to the interest coupon due date upon which the
bonds would be redeemed. In addition, such redemption
notices shall also be mailed to Moody's Investors
Service, Inc., and Standard & Poor's Corporation at
their offices in New York, New York, but such notices
shall not be a condition precedent to any such
redemption. Interest on any bonds so called for
redemption shall cease on the date fixed for such
redemption upon payment of the call price into the
Bond Fund.
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The City further reserves the right to purchase any
or all of the bonds in the open market at any time at
a price not in excess of the call price applicable at
the next succeeding call date.
The City hereby covenants and agrees with the holders
of each and every one of the bonds of this issue to
fully carry out all covenants and meet all obligations
of the City as set forth in the Bond Ordinance.
It is hereby certified and declared that the bonds
of this issue are issued pursuant to and in strict
compliance with the Constitution and laws of the State
of Washington and the ordinances of the City, and
that all acts, conditions and things required to be
done precedent to and in the issuance of this bond
have happened, have been done and have been performed
as required by law.
IN WITNESS WHEREOF, the City has caused this bond
to be signed by the manual signature of its Mayor
and attested by the facsimile signature of its City
Clerk and its printed facsimile seal to be reproduced
hereon and the interest coupons to be signed with the
facsimile signatures of such officials this first day
of November, 1977.
CITY OF EDMONDS, WASHINGTON
By
ATTEST:
(facsimile signature)
City Clerk
Mayor
The interest coupons attached to the Bonds shall be in
substantially the following form:
Coupon No.
(Unless the bond referred to below shall have been
previously redeemed)
On the FIRST DAY OF (JANUARY)(JULY), 19 , the CITY
OF EDMONDS, WASHINGTON, upon presentation and surrender
of this coupon will pay to bearer at the office of the
Director of Finance of the City'or, at the option of
the holder hereof, at either fiscal agency of the State
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of Washington in the Cities of Seattle, Washington, or.
New York, New York, the sum shown hereon in lawful
money of the United States of America from the special
fund of the City known as the "Water and Sewer Revenue
Bond Fund, 1977," such sum being the interest then due
on its "Water and Sewer Revenue Refunding and
Construction Bond, 1977," dated November 1, 1977, and
numbered
CITY OF EDMONDS, WASHINGTON
By (facsimile signature)
Mayor
ATTEST:
(facsimile signature)
City Clerk
Section 15. Execution of Bonds. The Bonds shall be
printed on lithographed forms, shall be signed by the manual signature
of the Mayor and attested by the facsimile signature of the City Clerk,
and pursuant to RCW 39.62.030 shall have the seal of the City in printed
facsimile reproduced thereon, and the interest coupons attached thereto
shall bear the facsimile signatures of the Mayor and the City Clerk.
Section 16. Provision for Future Parity Bonds. The
City reserves the right to issue Future Parity Bonds which will
constitute a charge and lien upon the Revenue of the System and ULID
Assessments hereafter pledged to be paid into the Bond Fund on a
parity with the Bonds if the following conditions should be met and
complied with at the time of the issuance of such Future Parity Bonds,
to -wit:
(1) At the time of issuance of such Future Parity
Bonds, there shall not be any deficiency in the Bond
Fund or the Reserve Account therein.
(2) Each ordinance providing for the issuance of
such Future Parity Bonds shall require that all Assess-
ments levied in any ULID created in connection with the
Future Parity Bonds then being 'issued will be paid
directly into the Bond Fund.
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(3) Each ordinance providing for the issuance of
such Future Parity Bonds shall provide for the payment
of the principal thereof and interest thereon out of
the Bond Fund.
(4) The ordinance authorizing any Future Parity
Bonds shall require that the Reserve Account be
increased within a period of five years after the date
of issuance of the Future Parity Bonds to an amount
equal to the average annual principal and interest
requirements on all Future Parity Bonds, including the
Bonds and the Future Parity Bonds proposed to be
issued, excluding from such amount the principal amount
of any Term Bonds included in the Future Parity Bonds
issue.
(5) At the time of the issuance of such Future Parity
Bonds, the City shall have on file a certificate from
an independent licensed professional engineer experienced
in the design, construction and operation of municipal
utilities, showing that in his professional opinion,
the annual Revenue of the System, after payment of
Operating and Maintenance Expenses, available for debt
service on the Bonds, Future Parity Bonds then outstanding
and the Future Parity Bonds proposed to be issued for
each year shall be at least equal to the Coverage Require-
ment (1.25 times that amount of debt service to be paid
from operating Revenue and not Assessments).
In determining whether the City is able to comply with the
parity conditions, the Revenue of the System of the City, less
Operating and Maintenance Expenses, for any twelve consecutive calendar
months out of the immediately preceding twenty-four consecutive
months shall be used. The following adjustments may be made to the
historical net operating Revenue of the System:
(1) Any rate change that has taken place or been
approved, may be reflected;
(2) Revenue may be added from customers actually
added to the System subsequent to the 12-month base
period;
(3) Revenue may be added from customers to be
served by the improvements being constructed out of
the proceeds of the Future Parity Bonds to be issued;
and
-35-
(4) A full year's revenue may be included from any
customer being served, but who has not been receiving
service for the full period of operation used as a
basis for the certificate; and
(5) Actual or reasonably anticipated changes in the
Operating and Maintenance Expenses subsequent to
such 12-month period shall be added or deducted, as is
applicable.
Nothing contained in the provisions for parity shall prevent
the City from issuing revenue bonds having a junior lien on the
Revenue of the System or from pledging the payment of ULID Assessments
into a bond redemption fund or account created to pay and secure the
payment of the principal and interest on such junior lien bonds as
long as such ULID Assessments are levied to pay part or all of the
cost of improvements being constructed out of the proceeds of the
sale of such junior lien bonds. Neither shall anything contained in
this ordinance prevent the City from issuing revenue bonds to refund
maturing revenue bonds of the City for the payment of which money
is not otherwise available.
Section 17. Defeasance Clause.
In the event the City
shall issue advance refunding bonds pursuant to the laws of the
State of Washington, or have money available from any other lawful
source, to pay the principal of and interest on the Bonds or such
portion thereof included in the refunding plan as the same become
due and payable and to refund all such then outstanding Bonds and
to pay the costs of refunding, and shall have irrevocably set aside
for and pledged to such payment and refunding, money and/or direct
obligations of the United States of America or other legal investments
sufficient in amount, together with known earned income from the
-36-
investments thereof, to make such payments and to accomplish the
.refunding as scheduled (hereinafter called the "trust account") and
shall irrevocably make provisions for redemption of such Bonds, then
in that case all right and interest of the owners or holders of the
Bonds to be so retired or refunded and the appurtenant coupons
(hereinafter collectively called the "defeased Bonds") in the covenants
of this ordinance, in the Revenue of the System, funds and accounts,
including ULID Assessments, obligated to the payment of such Bonds
shall thereafter cease and become void, except such owners and holders
shall have the right to receive payment of the principal of and
interest on the defeased Bonds from the trust account and, in the
event the funds in the trust account are not available for such
payment, shall have the residual right to receive payment of the
principal of and interest on the defeased Bonds from the Revenue of
the System and ULID Assessments without any priority of lien or charge
against that Revenue and Assessments or covenants with respect thereto
except to be paid therefrom. After the establishing and full funding
of such trust account, the City may then 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, subject
only to the rights of the holders of any other bonds then outstanding.
In the event that the refunding plan provides that the
Bonds being refunded or the refunding bonds to be issued be secured
by cash and/or direct obligations of the United States of America
or other legal investments pending the prior redemption of those
Bonds being refunded and if: such refunding plan also provides that
-37-
certain cash and/or direct obligations of the United States of
America or other legal investments are irrevocably pledged for the
prior redemption of those Bonds included in the refunding plan, then
only the debt service on the Bonds which are not defeased Bonds and
the refunding bonds, the payment of which is not so secured by the
refunding plan, shall be included in the computation of coverage
for issuance of Future Parity Bonds and the annual computation of
coverage for determining compliance with the rate covenants.
Section 18.
Temporary Bond. Pending the printing,
execution and delivery to the purchaser of the definitive Bonds,
the City may cause to be executed and delivered to such purchaser
a single temporary Bond in the principal amount of $4,805,000. Such
temporary Bond shall bear the same date of issuance, interest rates,
principal payment dates and terms and covenants as the definitive
Bonds, and shall be issued as a fully registered bond in the name
of such purchaser, and shall be in such form as acceptable to such
purchaser. Such temporary Bond shall be exchanged for the definitive
Bonds as soon as the same are printed, executed and available for
delivery.
Section 19. Sale and Delivery of Bonds. Seattle -
Northwest Securities Corporation of Seattle, Washington, heretofore
offered to purchase the Bonds at a price of $98.00 per each $100.00
of par plus accrued interest to the date of delivery of the Bonds,
the City to furnish the printed Bonds and the unqualified approving
legal opinion of Messrs. Roberts, Shefelman, Lawrence, Gay & Moch,
municipal bond counsel of Seattle, Washington, and the purchaser to
pay the cost of printing such Bonds, bond rating service charges, an
-38-
allocable portion of the cost of such legal opinion as set forth
in Section 10 above and the cost of delivering the Bonds to such
purchaser. Bond counsel's opinion shall state that bond counsel
has not reviewed, and thus expresses no opinion concerning, the
completeness or accuracy of any official statement, offering circular
or other sales material relating to the issuance of the Bonds or
otherwise used in connection with the Bonds. The City Council, being
of the opinion that it was in the best interests of the City to accept
such offer, duly accepted the same on November 1, 1977, and such
acceptance is hereby ratified and confirmed. The Bonds shall, therefore,
immediately upon their execution be delivered to the purchaser upon
payment for the Bonds in accordance with such offer.
Section 20. Effective Date. This ordinance shall take
effect and be in force five days after its passage, approval and
legal publication.
PASSED by the City Council of the City of Edmonds,
Washington, at a regular open public meeting thereof and APPROVED
by the Mayor this 15th day of November, 1977.
ATTEST:
City Clerk
FORM APPROVED:
LA ,c --.
City Attorney
i
CITY OF EDMONDS, WASHINGTON
By
Mayor
-39-
E X H I B I T A
Waterline installation and replacements, location and termini
as listed below:
A. 2800 feet of 8" ductile iron pipe from 168th and 62nd
Avenue northwesterly to 68th Avenue West and North
Meadowdale Road.
B. Casper Street: From Third Avenue North to Seventh
Avenue North, 550 feet of 6" ductile iron pipe with one
(1) fire hydrant.
C. Daley Street: From Third Avenue North to Sixth Avenue
North, 670 feet of 6" ductile iron pipe with one (1)
fire hydrant.
D. 194th Place Southwest: From 88th Avenue West to 89th
Pl. West, 400 feet of 8" ductile iron pipe with one (1)
fire hydrant.
E. 84th Avenue West: From 196th Street Southwest to
184th Street Southwest, 3,900 feet of 6" ductile iron
pipe with three (3) fire hydrants.
F. 80th Avenue West: From 200th Street Southwest to 188th
Street Southwest, 3,900 feet of ductile iron pipe with
five (5) fire hydrants.
A
G. 81st Place West: From 81st Place West to 82nd Avenue
West, 200 feet of 6" ductile iron pipe with one (1)
fire hydrant.
H. 82nd Place West: From 212th Street Southwest to 84th
Avenue West, 1,100 feet of 6" ductile iron pipe with
two (2) fire hydrants.
I. 82nd Avenue West: From 217th Street Southwest to
218th Street Southwest, 350 feet of 6" ductile iron
pipe with no fire hydrants.
J. 85th Place West: From 218th Street Southwest to 219th
Street Southwest, 300 feet of 6" ductile iron pipe with
one (1) fire hydrant.
K. 96th Avenue West: From Bowdoin Way to 220th Street
Southwest, 2,700 feet of 6" ductile• iron pipe with
five (5) fire hydrants.
EXHIBIT A
Page Two
L. 218th Street Southwest: From 76th Avenue West to 74th
Avenue West, 650 feet of 8" ductile iron pipe with one
(1) fire hydrant.
M. Highway 99: From 222nd Street Southwest to 224th Street
Southwest, 1,500 feet of 8" ductile iron pipe with one
(1) fire hydrant.
N. Highway 99: From 220th Street Southwest to 224th Street
Southwest, 1,400 feet of 8" ductile iron pipe with two
(2) fire hydrants.
0. 234th Street Southwest: From Highway 99 to 76th Avenue
West, 1,350 feet of 6" ductile iron pipe with two (2)
fire hydrants.
A G R E E M E N T
THIS AGREEMENT made and entered into as of the 45 61) day
of November, 1977, by and between the CITY OF EDMONDS, WASHINGTON,
a municipal corporation of the State of Washington (the "City"),
and RAINIER NATIONAL BANK, Seattle, Washington (the "Refunding Trustee");
W1. I T N E S S E T H:
SECTION 1. Recitals. The City now has outstanding the
following bonds:
(a) $118,000 principal amount of its "Water and
Sewer Revenue Bonds, 1959," issued under date of
August 1, 1959 (hereinafter called the "1959 Bonds"),
which bonds mature on August 1 in each of the years
1978 through 1981, and all bear interest at the rate
of 4.40% per annum;
(b) $65,000 principal amount of its "Water and
Sewer Revenue Bonds, 1960," issued under date of
May 1, 1960 (hereinafter called the "1960 Bonds"),
which bonds mature on May 1 in each of the years 1978
through 1982, a part of which 1960 Bonds bear interest
at the rate of 4.40% per annum and the remainder of
which 1960 Bonds bear interest at the rate of 4.20%
per annum;
(c) $100,000 principal amount of its "Water and
Sewer Revenue Bonds, 1961," issued under date of
December 1, 1961 (hereinafter called the "1961 Bonds"),
which bonds mature on December 1 in each of the years
1982 through 1984, and all bear interest at the rate
of 4.25% per annum;
(d) $40,000 principal amount of its "Water and
Sewer Revenue Bonds, 1965," issued under date of
October 1, 1965 (hereinafter called the "1965 Bonds"),
which bonds mature on October 1 in each of the years
1978 through 1981, and all bear interest at the rate
of 3.75% per annum;
(e) $625,000 principal amount of its "Water and
Sewer Revenue Bonds, 1966," issued under date of
June 1, 1966 (hereinafter called the "1966 Bonds"),
which bonds mature on June 1 in each of the years
1978 through 1986, a part of which 1966 Bonds bear
interest at the rate of 4.25% per annum and the
remainder of which 1966 Bonds bear interest at the
rate of 4.375% per annum;
(f) $235,000 principal amount of its "Water and
Sewer Revenue Bonds, 1967," issued under date of
July 1, 1967 (hereinafter called the "1967 Bonds"),
which bonds mature on July 1 in each of the years
1978 through 1986, a part of which 1967 Bonds bear
interest at the rate of 4.75% per annum and the
remainder of which 1967 Bonds bear interest at the
rate of 5% per annum;
(g) $1,000,000 principal amount of its "Water and
Sewer Revenue Bonds, 1970," issued under date of
December 1, 1970 (hereinafter called the "1970 Bonds"),
provision for the refunding, payment and retirement
of the principal only thereof on December 1, 1982,
has been irrevocably provided for out of the investment
proceeds of the 1972 Bonds leaving only interest on such
1970 Bonds not covered by such refunding operation,
which bonds bear interest at various rates from
6.70% to 7% per annum;
(h) $1,035,000 principal amount of its "Water and
Sewer Revenue Refunding Bonds, 1972," issued under date
of March 1, 1972 (hereinafter called the "1972 Bonds"),
which bonds mature on September 1 in each of the years
1983 through 1991, all of which 1972 Bonds bear interest
at the rate of 5.75% per annum; and
(i) $2,020,000 principal amount of its "Water and
Sewer Revenue Refunding Bonds, 1976," issued under date
of December 1, 1976 (hereinafter called the "1976 Bonds"),
which bonds mature on July l'in each of the years 1985
through 1999, which bonds bear interest at various rates
from 6% to 6.25% per annum.
(All of which bonds are sometimes hereinafter referred to as the
"Outstanding Bonds.") Pursuant to Ordinance No. 1957 passed by the
City Council and approved by the Mayor on November 15, 1977, the
City has determined:
(a) All of the outstanding 1959 Bonds may be
refunded by providing funds for the payment of the
principal of and interest on such 1959 Bonds as
the same become due up through August 1, 1981;
-2-
(b) All of the outstanding 1960 Bonds may be
refunded by providing funds for the payment of the
principal of and interest on such 1960 Bonds as
the same become due up through May 1, 1982;
(c) All of the outstanding 1961 Bonds may be
refunded by providing funds for the payment of the
principal of and interest on such 1961 Bonds as the
same become due up through December 1, 1984;
(d) All of the outstanding 1965 Bonds may be
refunded by providing funds for the payment of the
principal of and interest on such 1965 Bonds as
the same become due up through October 1, 1981;
(e) All of the outstanding 1966 Bonds may be
refunded by providing funds for the payment of the
principal of and interest on such 1966 Bonds as
the same become due up through June 1, 1986;
(f) All of the outstanding 1-967 Bonds may be
refunded by providing funds for the payment of the
principal of and interest on such 1967 Bonds as
the same become due up through July 1, 1986;
(g) All of the outstanding 1970 Bonds may be
refunded by providing funds for the payment of the
interest only on such 1970 Bonds as the same
becomes due up through December 1, 1982 (the call
date for the principal of such 1970 Bonds);
[h) All of the outstanding 1972 Bonds may be
refunded by providing funds for the payment of the
principal of and interest on such 1972 Bonds as
the same become due beginning March 1, 1983, up
through September 1, 1991; and
(i) All of the outstanding 1976 Bonds may be
refunded by providing funds for the payment of the
principal of and interest on such 1976 Bonds as the
same become due up through January 1, 1997, at which
time all outstanding 1976 Bonds, which mature on July
1 in each of the years 1997 through 1999, will be
called, paid and retired;
out of the proceeds of the sale of its "Water and Sewer Revenue
Refunding and Construction Bonds,.1977" (hereinafter referred to as
the "Bonds"), and money presently on hand in the bond redemption
funds for all of such Outstanding Bonds.
-3-
SECTION 2. Provisions for Refunding. To accomplish the
refunding of all of the 1959 Bonds, 1960 Bonds, 1961 Bonds, 1965
Bonds, 1966 Bonds, 1967 Bonds, 1970 Bonds (interest only), 1972 Bonds
and 1976 Bonds, including the payment of principal and interest
to become due on all of such Outstanding Bonds as they respectively
become due and to call and pay such 1976 Bonds as set forth in the
immediately preceding section, the City, simultaneously with the
delivery of the Bonds issued pursuant to said Ordinance No. 1957,
does hereby agree irrevocably to deposit with the Refunding Trustee
in trust for the security and benefit of the holders and owners of
the Outstanding Bonds and the Bonds the sum of $ 116,1V0, 2 in
cash from the proceeds of sale of the Bonds and Federal Land Bank
Bonds and United States Treasury Certificates of Indebtedness, Notes
and Bonds state and local government series (commonly referred to
as "book entries" [BE]) with amounts, interest rates and maturities
as more particularly set forth in Schedule "A" attached to this
Agreement and by this reference incorporated herein, which securities
are hereinafter referred to as "Acquired Obligations," and such
cash and "Acquired Obligations," with the investment income therefrom,
will be sufficient to pay:
(a) The principal of and interest on the 1959
Bonds as the same shall become due up to and
including August 1, 1981;
(b) The principal of and interest on the 1960
Bonds as the same shall become due up to and
including May 1, 1982;
(c) The principal of and interest on the 1961
Bonds as the same shall become due up to and
including December 1, 1984;
-4-
(d) The principal of and interest on the 1965
Bonds as the same shall become due up to and
including October 1, 1981;
(e) The principal of and interest on the 1966
Bonds as the same shall become due up to and
including June 1, 1986;
(f) The principal of and interest on the 1967
Bonds as the same shall become due up to and
including July 1,1986;
(g) The interest only -.on the 1970 Bonds as the
sarae shall become due up to and including December
1, 1982;
(h) The principal of and interest on the 1972
Bonds as the same shall become due beginning March 1,
1983, up to and including September 1, 1991; and
(i) The principal of and interest on the 1976
Bonds as the same shall become due up to and including
January 1, 1997, at which time all of the 1976 Bonds,
which mature on July 1 in each of the years 1997
through 1999, will be called, paid and retired.
On or before the delivery of the Bonds, -the City agrees
that it will cause to be delivered to the Refunding Trustee a statement
setting forth the amount of interest and principal to be paid on each
semiannual interest payment date for such Outstanding Bonds and the
amount of principal required on January!l, 1997, to pay and redeem
the outstanding 1976 Bonds maturing after such call date as aforesaid.
The City by said Ordinance No. 1957 has irrevocably called
for redemption on January 1, 1997, all of the outstanding 1976 Bonds
at a redemption price of 100% of par plus accrued interest to such
date of redemption. Such call for redemption shall be irrevocable
upon the delivery of the Bonds. The Refunding Trustee, on behalf of
-5-
the Director of Finance of the City, shall provide for the publication
and mailing of the proper notice of such redemption or prepayment
in accordance with the provisions of Ordinance No. 1886 pertaining
to the outstanding 1976 Bonds.
Provision for the giving of such notice of redemption or
prepayment has irrevocably been made by the City.
SECTION 3. Disbursements by Refunding Trustee. The
Refunding Trustee shall present for payment on the due date thereof
the "Acquired Obligations" so deposited and shall apply the proceeds
derived therefrom in accordance with the provisions of this section.
Money shall be transferred by the Refunding Trustee to the
Director of Finance of the City in amounts sufficient to pay the
interest on and principal of each issue of the Outstanding Bonds
coming due and payable.on or before each respective payment date and
the redemption price to be payable with respect to the outstanding
1976 Bonds on their call date as aforesaid.
SECTION 4. Nonreinvestment of Funds; Custody and Safekeepin
of "Acquired Obligations". All money deposited with the Refunding
Trustee or received by the Refunding Trustee as maturing principal
or interest on the "Acquired Obligations" prior to the time required
to make the payments hereinbefore set forth shall be held by the
Refunding Trustee and shall not be reinvested.
All income derived from the "Acquired Obligations" and any
money deposited with the Refunding Trustee pursuant to Section 2
hereof in the hands of the Refunding Trustee (which money is not
-6-
tM
required to make the payments hereinbefore required to be made)
shall be paid to the Director of Finance of the City for the credit
of the "1977 Refunding Fund" of the City as and when realized and
collected for use and application as other money deposited in said
"1977 Refunding Fund."
For as long as any of the Outstanding Bonds are outstanding,
on or before the loth day of each month, commencing with the month
of January, 1978, the Refunding Trustee shall render a statement
as of the last day of the preceding month to the Director of
Finance of the City, which statement shall set forth the "Acquired
Obligations" which have matured, the amounts received by the Refunding
Trustee by reason of such maturity and the investment income
received from such "Acquired Obligations," the amounts paid to such
Director of Finance for credit to the "1977 Refunding Fund" and
the dates of such delivery for the payment of the interest on and
principal of each issue of such Outstanding Bonds as the same shall
become due and/or payable and the final payment of the redemption
price for the outstanding 1976 Bonds on their call date and any other
transactions of the Refunding Trustee pertaining to its duties and
obligations as set forth herein.
All "Acquired Obligations," money and investment income
deposited with or received by the Refunding Trustee pursuant to
this Agreement shall be subject to the trust created by this
Agreement and the Refunding Trustee shall be liable for the
preservation and safekeeping thereof.
SECTION 5. Duties and Obligations of Refundinq Trustee.
The duties and obligations of the Refunding Trustee shall be as
-7-
prescribed by the provisions of this Agreement, and the Refunding
Trustee shall not be liable except for the performance of its duties
and obligations as specifically set forth herein and to act in good
faith in the performance thereof, and no implied duties or obligations
shall be incurred by such Refunding Trustee other than those
specified herein.
The Refunding Trustee may consult with counsel of its
choice and the opinion of such counsel shall be full and complete
authorization and protection in respect of any action taken or not
taken or suffered by it hereunder in good faith and in accordance
with the opinion of such counsel.
Provisions for the fees, compensation and expenses of the
Refunding Trustee satisfactory to it have been made.
ATTEST:
City Clerk
CITY OF EDMONDS, WASHINGTON
A .
By
ayor
RAINIER NATIONAL BANK
By
W12
Trust Officer
S CHEDU? A
CITY OF EDMONDS
ACQUIRED OBLIGATIONS
SECURITY
PAR
MATURITY
DESCRIPTION
AMOUNT
COUPON
BATE
BE
$ 234,000
7.610010
1101197
*FLB
450,000
7.950000
10/21/96
BE
267,000
7.600000
7/01/96
BE
244,000
7.550000
7/01/95
BE
231,000
7.550000
7/01/94
BE
210,000
7.500000
7101193
BE
198,000
7.500000
7101192
BE
178,000
7.000000
9/01/91
BE
206,000
7.000000
9/01/90
BE
200,000
7.000000
9/01/89
BE
189,000
7.000000
9/01/88
BE
169,000
7.000000
9/01/87
BE
6,000
7.000000
9/01/86
BE
48,000
6.500000
7/01/86
BE
96,000
3.330000
6/01/86
BE
6,000
0.000000
9/01/85
BE
48,000
6.500000
7/01/85
BE
100,000
3.330000
6/01/85
BE
28,000
0.000000
12/01/84
BE
7,000
0.000000
9/01/84
BE
37,000
6.500000
7/01/84
BE
63,000
0.000000
6/01/84
BE
8,000
0.000000
1/01/84
BE
33,000
0.000000
12/01/83
BE
6,000
0.000000
9/01/83
BE
37,000
6.500000
7101183
BE
51,000
0.000000
6/01/83
BE
7,000
0.000000
1/01/83
BE
11,000
0.000004
12/01/82
BE
32,000
6.500000
7101182
BE
77,000
0.000000
6/01/82
BE
7,000
0.000000
1/01/82
BE
3,000
0.000000
12/01/81
BE
18,000
4.400000
8/01/81
BE
31,000
6.500000
7101181
BE
64,000
0.000000
6/01/81
BE
7,000
0.000000
1/01/81
BE
4,000
0.000000
12/01/80
BE
35,000
4.400000
8/01/80
BE
31,000
6.000000
7/01/80
BE
46,000
0.000000
6/01/80
BE
6,000
0.000000
1/01/80
BE
6,000
0.000000
112/01/79
BE
33,.000
0.000000
8101179
BE
26,000
6.000000
7101179
BE
47,000
0.000000
6/01/79
BE
6,000
0.000000
1/01/79
BE
7,000
0.000000
12/01/78
BE
32,000
4.400000
8/01/78
BE
25,000
6.500000
7101178
BE
60,000
0.000000
6101178