Ordinance 2150CITY OF EDMONDS, WASHINGTON
ORDINANCE NO. 2150
AN ORDINANCE of the City of Edmonds, Wash-
ington, relating to contracting indebtedness;
providing for the issuance, specifying the
maturities, maximum effective interest rate,
terms and covenants of $3,400,000 par value
of "Limited Tax General Obligation Bonds,
1980," of the City for strictly City purposes
to provide funds with which to pay the cost
of renovation of the Anderson Cultural and
Leisure Center on Main Street in the City,
including providing funds for the redemption
of interest -bearing warrants issued to ac-
quire the elementary school site on which
such Center is located; establishing a bond
redemption fund; and providing for the sale
of such bonds.
WHEREAS, the City of Edmonds, Washington (hereinafter
called the "City") is in urgent need of renovating the Anderson
Cultural and Leisure Center on Main Street in the City, and provid-
ing funds to redeem the interest -bearing warrants issued to acquire
the elementary school site on which such Center is located, the
estimated cost of which is $3,400,000, and the City does not have
available sufficient funds to pay the cost; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, DO
ORDAIN as follows:
Section 1. The assessed valuation of the taxable prop-
erty of the City as ascertained by the last preceding assessment
for City purposes for the calendar year 1980 is $699,137,111, and
the City has outstanding general indebtedness evidenced by limited
tax general obligation bonds of $280,000 incurred 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, and has a general indebtedness out-
standing evidenced by unlimited tax general obligation bonds in
the principal amount of $25,000 issued pursuant to a vote of the
qualified voters of the City for municipal capital purposes and the
amount of indebtedness for which bonds are herein authorized to be
issued is $3,400,000.
Section 2. The City shall borrow money on the credit of
the City and issue negotiable limited tax general obligation bonds
evidencing such indebtedness in the amount of $3,400,000 for gen-
eral City purposes to provide the funds to pay the cost of renova-
tion of the Anderson Cultural and Leisure Center on Main Street in
the City, including providing funds for the redemption of interest -
bearing warrants issued to acquire the elementary school site on
which such Center is located, as above described and to pay the
cost of the issuance of the Bonds. Such general indebtedness to be
incurred shall be within the limit up to 3/4 of to of the value of
the taxable property within the City permitted for general municipal
purposes without a vote of the qualified voters therein.
Section 3. The Bonds shall be called "Limited Tax General
Obligation Bonds, 1980" (the "Bonds"), of the City; shall be dated
September 1, 1980; shall be in the denomination of $5,000 each;
shall be numbered from 1 to 680, inclusive; and shall bear interest
at the rate or rates specified in the winning bid for the Bonds,
but not in excess of an effective rate of 12% per annum, payable
on September 1, 1981, and semiannually thereafter on each succeed-
ing March 1 and September 1 as evidenced by coupons to be attached
to the Bonds representing interest to maturity. If any Bond is not
redeemed when duly presented at its maturity or call date thereof,
the City shall be obligated to pay interest at the coupon rate for
each such Bond from and after the maturity or call date until such
Bond, both principal and interest, shall have been paid in full or
until sufficient money for such payment in full is on deposit in
the "Limited Tax General Obligation Bond Fund, 1980" (the "Bond
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Fund"), hereinafter created and such Bond has been duly called for
payment. Both principal of and interest on the Bonds are to be
paid in lawful money of the United States of America, which at the
time of payment shall be legal tender for the payment of public
and private debts, at the office of the Director of Finance of the
City, or, at the option of the holder, at either fiscal agency of
the State of Washington in Seattle, Washington, or New York, New
York. The Bonds shall mature serially, annually, in order of their
numbers in the following amounts on September 1 of each of the fol-
lowing years (such maturity schedule being computed at an assumed
interest rate of 8% per annum):
Bond
Numbers
Maturity
(Inclusive)
Amounts
Years
1
to
17
$ 85,000
1982
18
to
35
90,000
1983
36
to
54
95,000
1984
55
to
75
105,000
1985
76
to
97
110,000
1986
98
to
121
120,000
1987
122
to
147
130,000
1988
148
to
175
140,000
1989
176
to
205
150,000
1990
206
to
238
165,000
1991
239
to
273
175,000
1992
274
to
311
190,000
1993
312
to
352
205,000
1994
353
to
397
225,000
1995
398
to
445
240,000
1996
446
to
497
260,000
1997
498
to
553
280,000
1998
554
to
614
305,000
1999
615
to
680
330,000
2000
The City reserves the right to redeem any or all of the
Bonds prior to their stated maturity dates as a whole, or in part
in inverse numerical order, on September 1, 1990, or any semiannual
interest payment date thereafter at par plus accrued interest to
date of redemption.
Notice of such intended redemption shall be published
in the official newspaper of the City, or if there is no official
newspaper, then in a newspaper of general circulation in Snohomish
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County, at least once not less than 30 nor more than 45 days prior
to the call date, and a copy of such notice shall be mailed within
the same period to the main office of the principal underwriter or
account manager of the successful bidder for the Bonds, or its
successor. In addition, such redemption notice shall also be sent
to Moody's Investors Service, Inc., and Standard & Poor's Corpora-
tion, at their offices in New York, New York, but the mailing of
such notice to such New York firms shall not be a condition prece-
dent to the redemption of such Bonds. Interest on any Bonds so
called for redemption shall cease on such call date upon payment
of the redemption price into the Bond 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 par plus accrued interest to date of purchase.
Section 4. The City hereby irrevocably pledges itself to
levy taxes annually, within the constitutional and statutory tax
limitations provided by law without a vote of the electors of the
City, upon all property in the City subject to taxation in an
amount sufficient, together with other money legally available and
to be used therefor, 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 have been irrevocably pledged for the payment
of the principal of and interest on the Bonds.
Section 5. The City hereby covenants that it will make
no use of the proceeds of the Bonds or of its other money at any
time during the term of the Bonds which will cause the Bonds to be
arbitrage bonds within the meaning of Section 103(c) of the United
States Internal Revenue Code of 1954, as amended, and applicable
regulations promulgated thereunder.
Section 6. The Bonds and coupons shall be printed or
lithographed on good bond paper in a form consistent with the
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provisions of this ordinance. The Bonds shall be signed by
the facsimile signature of the Mayor and attested by the manual
signature of the City Clerk and a facsimile reproduction of the
seal of the City shall be printed thereon, and the coupons shall
bear the facsimile signatures of the Mayor and the City Clerk.
Section 7. The Bond Fund is hereby created and estab-
lished in the office of the Director of Finance of the City. The
accrued interest and premium received, if any, upon the sale and
delivery of the Bonds shall be paid into the Bond Fund. The prin-
cipal proceeds received from the sale and delivery of the Bonds
shall be paid into the "Anderson Cultural Center Fund" heretofore
established by the District and used for the purposes specified in
Section 2 of this ordinance and to pay the costs of issuance and
sale of the Bonds. Pending the expenditure of such principal pro-
ceeds, the City may temporarily invest such proceeds in any legal
investment and the investment earnings may be retained in the
"Anderson Cultural Center Fund" and expended for the purposes of
such fund. All taxes collected for and allocated to the payment
of the principal of and interest on the Bonds shall hereafter be
deposited in the Bond Fund. Pending the receipt of the proceeds
from the issuance of the Bonds, interest -bearing warrants may be
drawn on the "Anderson Cultural Center Fund" to provide interim
funds to pay such costs, such loan to be repaid from the proceeds
received from the issuance of the Bonds.
Section 8. The Bonds shall be sold for cash at public
sale for not less than par, plus accrued interest.
The City Clerk is hereby authorized to give notice call-
ing for bids to purchase the Bonds by publishing the same once a
week for four consecutive weeks in the official newspaper of the
City, or if there is no official newspaper, then in a newspaper of
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general circulation in Snohomish County. Such notice shall specify
that sealed bids for the purchase of the Bonds shall be received by
the City Clerk in her office in the City Hall on August 6, 1980, up
to 11:00 a.m., local time, at which time all bids will be considered
and award made by the City Council at its continued regular meeting
to be held in the City Council Chambers commencing at 7:30, p.m.,
local time, on the same date.
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.
Rids shall be invited for the purchase of the Bonds with
fixed maturities in accordance with the schedule specified in
Section 3 hereof.
The notice shall specify the maximum effective rate of
interest the Bonds shall bear, namely, 12% 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.
No bid will be considered for the Bonds for less than par
and accrued interest. The purchaser must pay accrued interest to
date of delivery of the bonds.
Coupon rates shall be in multiples of 1/8th or 1/10th 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 of the
Bonds 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%.
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For the purpose of comparing the bids only, the coupon
rates bid being controlling, each bid shall state the total inter-
est cost over the life of the Bonds and the net effective interest
rate of the bid.
The Bonds shall be sold to the bidder making the best
bid, subject to the right of the City Council 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. The City further reserves the right to waive any
irregularity in any bid or in the bidding process.
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 $170,000. The deposit shall be either by certified
check or cashier's check made payable to the Director of Finance of
the City and shall be promptly returned if the bid is not accepted.
The City reserves the right to invest the good faith deposit of the
purchaser pending the payment for the Bonds. The purchaser shall
not be credited for such earnings. If the Bonds are ready for de-
livery and the successful bidder shall fail or neglect to complete
the purchase of the Bonds within forty days following the accept-
ance of its bid, the amount of its deposit shall be forfeited to
the City and in that event the City may accept the bid of the one
making the next best bid. If there be two or more equal bids 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
shall be accepted. The Bonds will be delivered to the successful
bidder, against payment in federal funds of the purchase price plus
accrued interest to the date of delivery, less the amount of the
good faith deposit, at the office of the Director of Finance of the
City or in Seattle, Washington, at the City's expense, or at such
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other place as the Director of Finance of the City and the success-
ful 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 time 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.
If, prior to the delivery of the Bonds, the income
receivable by the holders thereof shall become taxable, directly
or indirectly, by the terms of any federal income tax law, the
successful bidder may at its option be relieved of its obligation
to purchase the Bonds, and in such case the deposit accompanying
its bid will be returned, without interest.
The notice of bond sale shall provide that the City
will cause the Bonds to be printed or lithographed and signed
and will furnish the approving legal opinion of Messrs. Roberts,
Shefelman, Lawrence, Gay & Moch, bond counsel of Seattle, Washing-
ton, covering the Bonds without cost to the purchaser, the opinion
also being printed on each bond. Bond counsel shall not be re-
quired to review or express any opinion concerning the completeness
or accuracy of any official statement, offering circular or other
sales material issued or used in connection with the Bonds, and
bond counsel's opinion shall so state. Such notice shall also
provide that further information regarding the details of the Bonds
may be received upon request made to Seattle -Northwest Securities
Corporation, 500 Union Street, Seattle, Washington, the City's
financial consultant.
Section 9. This ordinance shall take effect from and
after its passage and five (5) days following its publication as
required by law.
PASSED by the City Council of the City of Edmonds,
Washington, at a special open public meeting of which due notice had
been given as provided by law this 16th day of June, 1980.
ATTEST/AUTHENTICATED:
City Clerk
FORM APPROVED;
Azz4 a
C`t� /F / '
y Attorney
PUBLISHED: June 23, 1980
Mayor
9 -
I, IRENE VARNEY MORAN, City Clerk of the City of
Edmonds, Washington, hereby certify that the attached copy
of Ordinance No. 2150 is a true and correct copy of the
original ordinance passed on the 16th day of June, 1980, as
such ordinance appears on the Minute Book of the City.
DATED this 16 day of June, 1980.
J! —z�Z/ cal ini
IREN VARNEY MORAN, ity C er
AFFIDAVIT OF POSTING ORDINANCE
STATE OF WASHINGTON )
) ss:
COUNTY OF SNOHOMISH )
IRENE VARNEY MORAN , being first duly sworn
on oath deposes and says that s he is over the age of eighteen (18)
years and is competent to testify as to the matter stated herein.
There is no official newspaper or other newspaper printed and
published within the City. In accordance with RCW 35A.12.160, on
the 17 day of June , 19 80, affiant posted true and
correct copies of the attached Ordinance No. 2150, passed by the
City Council on the 16 day of June , 1980 , at the
official posting places for City notices which are the public
bulletin boards at the following locations:
Edmonds Civic Center
250 Fifth Avenue North
Edmonds, Washington 98020
Edmonds Public Library
Civic Center, 250 Fifth Avenue North
Edmonds, Washington 98020
Edmonds Branch of United States Post Office
201 Main Street
Edmonds, Washington 98020
DATED this 17 day of
June
, 1980.
SUBSCRIBED AND SWORN to before me this /` day of
�r_a„Lr1950.
I3 t y Public in and for the
State of Washin on, residing
at s �-'4 - -+ram-�