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Ordinance 2423ORDINANCE NO. 2423 AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON, RELATING TO LOCAL IMPROVEMENT DISTRICT NO. 210; AUTHORIZING THE ISSUANCE AND SALE OF LOCAL IMPROVEMENT DISTRICT BOND ANTICIPATION NOTES; AND AMENDING SECTIONS 6 AND 8 OF ORDINANCE NO. 2237 TO PERMIT THE ISSUANCE OF SUCH NOTES. THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, DO ORDAIN AS FOLLOWS: Section 1. Section 6 of Ordinance No. 2237 is amended to read as follows: Section 6. Local Improvement District warrants or local improvement district bond anticipation notes shall be issued in payment of the portion of the cost and expense of the improvement to be paid from special assessments, the warrants or notes to be payable out of the Local Improvement Fund, District No. 210, hereinafter created, to bear interest from the date thereof at a rate not to exceed the maximum permitted by law and to be redeemed in cash, additional short-term obligations, and/or by local improvement district bonds herein authorized to be issued. The costs and expenses of the improvement shall be defrayed and the bonds shall be redeemed by the collection of special assessments to be levied and assessed upon the property within such district, payable in up to twenty-five (25) equal annual installments, with interest at a rate to be hereafter fixed by ordinance, payable up to twenty-seven (27) years after the date of issue. Section 2. Section 8 of Ordinance No. 2237 is amended to read as follows: Section 8. There is hereby created and established for Local Improvement District No. 210 a special fund to be known and designated as "Local Improvement Fund, District No. 210," into which fund shall be deposited the proceeds from the sale of interest bearing warrants or bond anticipation notes drawn against such fund which may be issued and sold by the City, and the aggregate of the several amounts assessed, levied and collected on the several lots and parcels of land in such local improvement district; and against which fund shall be issued cash warrants for the costs and expenses in connection with such improvement as the same become due, and against which fund shall be paid the bonds and the interest thereon. Section 3. The portion of the presently total estimated cost and expense of the improvements ordered to be carried out in Local Improvement District No. 210 (the "District") by Ordinance No. 2237 anticipated to be assessed against the spe- cially benefitted properties in the District is $1,200,000. Local improvement district bond anticipation notes of the District (the "Notes") therefore shall be issued pursuant to Chapter 39.50 RCW in the aggregate principal amount of - 2 - $1,200,000 for the purpose of paying the cost and expense of those improvements pending the receipt of special assessment payments and the proceeds of local improvement district bonds of the District. The Notes shall be numbered from 1 upward; shall be in the denomination of $5,000 each or any integral multiple thereof. The Notes shall be dated as of the date of their issuance; shall mature February 1, 1985; shall bear interest at the rate of 7 % per annum, payable at maturity, with full obligation on the part of the City to pay interest at the same rate from and after maturity until the Notes with interest are paid in full or until sufficient money for such payment in full is on deposit in the "Local Improvement Fund, District No. 210," created by Ordinance No. 2237, and the Notes have been duly called for redemption by the City Finance Director's giving written notice to the Purchaser of such call at least ten days prior to the call date. The Notes shall not be subject to redemption prior to their maturity date. Both principal of and interest on the Notes shall be payable solely out of the "Local Improvement Fund, District No. 210," from the proceeds of local improvement district bonds authorized to be issued by such ordinance or other short-term obligations to be deposited in such fund and/or prepaid special benefit assessments deposited in such fund, and from the Local Improvement Guaranty Fund of the City, and shall be payable in lawful money of the United States of America at the office of the City Finance Director in - 3 - Edmonds, Washington. The City Council declares and finds that the fixing of the above interest rate is in the best interests of the City. Section 4. The City is authorized to issue additional short-term bond anticipation notes to mature within three years of the date of issuance of the Notes to pay and redeem the Notes at their maturity and the City Finance Director is authorized to negotiate with various financial institutions and/or investment banking firms which he may select for the sale of such notes. The notes shall be sold at a negotiated sale, shall have such option of prior redemption, shall mature on such date and shall bear interest at such fixed or variable rate, but in no event to exceed 12% per annum, payable at such time or times as the City Finance Director shall determine. Section 5. The Notes shall be printed or lithographed on good bond paper or may be in typewritten or multicopied form in a form consistent with this ordinance and state law. The Notes shall be signed by the City Finance Director, and shall have the seal of the City impressed or a facsimile of the seal printed thereon. Section 6. The City covenants that it will spend the principal proceeds of the Notes with due diligence to completion of the purposes specified in this ordinance and will make no use of the proceeds of the Notes or other funds of the City at any time during the term of the Notes which will cause the Notes to - 4 - be arbitrage obligations within the meaning of Section 103(c) of the United States Internal Revenue Code of 1954, as amended, and the applicable regulations promulgated thereunder. Section 7. PEOPLES NATIONAL BANK OF WASHINGTON Seattle , Washington, (the "Purchaser") has submitted an offer to purchase 99.25 the Notes at a price of $_ per each $100 par value, the City to furnish the printed, typewritten or multicopied Notes and the approving legal opinion of Roberts & Shefelman, municipal bond counsel of Seattle, Washington, at the City's expense. Bond counsel shall not be required to review or express any opinion concerning the completeness or accuracy of any official state- ment, offering circular or other sales material issued or used in connection with the Notes, and bond counsel's opinion shall so state. The City Council, deeming that it is in the best interest of the City that such offer be accepted, accepts the same. The Notes shall, therefore, immediately upon their execu- tion, be delivered to the Purchaser upon payment therefor in accordance with such offer. The principal proceeds received from the sale of the Notes shall be paid into the "Local Improvement Fund, District No. 210," and used to pay a part of the cost of the improvements ordered to be carried out by Ordinance No. 2237. - 5 - Section 8. This ordinance shall take effect five days after passage and publication by posting as provided by law. APPROVED: ATTEST/AUTHENTICATED: C TY CLERK, Jacqueline G. Parrett APPROVED AS TO FORM: OFFICE OF T E CITY ORNEY: By a• FILED WITH THE CITY CLERK: April 3, 1984 PASSED BY THE CITY COUNCIL: April 3, 1984 POSTED: April 4, 1984 EFFECTIVE DATE: April 13, 1984 PUBLISHED: April 8, 1984 0282e - 6 - AFFIDAVIT OF POSTING ORDINANCE STATE OF WASHINGTON ) ) ss: COUNTY OF SNOHOMISH ) JACQUELINE G. PARRETT , being first duly sworn on oath deposes and says that she is over the age of eighteen (1.8) 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 4th day of April , 1984, affiant posted true and correct copies of the attached Ordinance No. 2423 , passed by the City Council on the 3rd day of April 19 84, 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 5th day of April 1984 . SUBSCRIBED AND SWORN to before me this day of Q]ib-t-;0ary Publ'c a.n and for the Stage o Washington, residing at