Ordinance 2904CITY OF EDMONDS, WASHINGTON
ORDINANCE NO. 2904
AN ORDINANCE relating to the combined water and
sewerage systems comprising the waterworks utility of
the City; specifying and adopting a plan or system for
the construction of certain improvements of that
waterworks utility; declaring the estimated cost
thereof as nearly as may be; providing for the issuance
of $5,785,000 par value Water and Sewer Revenue and
Refunding Bonds, 1993, for the purpose of providing a
part of the funds to carry out that plan or system for
the construction of certain improvements of the
waterworks utility of the City specified and adopted
herein, and refund a portion of the City's outstanding
Water and Sewer Revenue Bonds, 1988; providing for and
authorizing the purchase of certain obligations out of
a portion of the proceeds of the sale of the bonds
authorized herein and for the use and application of
the money derived from those obligations; authorizing
the execution of an agreement with a refunding trustee;
fixing the date, form, maturities, interest rates,
terms and covenants of those bonds; providing for the
sale and delivery of those bonds to Seattle -Northwest
Securities Corporation of Seattle, Washington; and
establishing an effective date of this ordinance.
WHEREAS, the City of Edmonds, Washington (the "City"), by
Ordinance No. 1957 passed and approved November 15, 1977,
specified and adopted a plan or system for the acquisition and
construction of certain additions and betterments to and exten-
sions and improvements of the combined water and sewerage systems
comprising the waterworks utility of the City (the "System");
declared the estimated cost thereof as nearly as may be; and
provided for the issuance of $4,805,000 par value Water and Sewer
Revenue Refunding and Construction Bonds, 1977 (the 111977
Bonds"), 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
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improvements of the System specified and adopted in that
ordinance, and (b) to pay, retire and refund the outstanding
Water 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, which 1977 Bonds were issued under date of November 1,
1977; and
WHEREAS, by Section 16 of Ordinance No. 1957, the City
reserved the right to issue additional and/or refunding water and
sewer revenue bonds (therein called "Future Parity Bonds") which
would constitute a lien and charge upon the gross revenue of the
System on a parity with such 1977 Bonds if the following
conditions are met and complied with at the time of the issuance
of such Future Parity Bonds:
11(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.
11(2) Each ordinance providing for the issuance of
such Future Parity Bonds shall require that all
Assessments levied in any ULID created in connection
with the Future Parity Bonds then being issued will be
paid directly into the Bond Fund.
11(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.
11(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
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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.
11(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 Requirement (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:
and
11(1) Any rate change that has taken place or been
approved, may be reflected;
11(2) Revenue may be added from customers actually
added to the System subsequent to the 12 -month base
period;
11(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
11(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
11(5) Actual or reasonably anticipated changes to
the Operating and Maintenance Expenses subsequent to
such 12 -month period shall be added or deducted, as is
applicable. .";
WHEREAS, by Ordinance 2363 passed on April 22, 1983, the
City authorized the issuance of $1,000,000 par value of its Water
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and Sewer Revenue Bonds, 1983 (the 111983 Bonds"), which bonds
were issued on a parity of lien with the 1977 Bonds; and
WHEREAS, by Ordinance No. 2363, the first subsections (4)
and (5) of Section 16 of Ordinance No. 1957 were amended to read
as follows:
and
11(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 if the payment for such Term Bonds is being
provided for by a sinking fund.
11(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 Requirement. . .";
WHEREAS, by Ordinance No. 2678 passed on August 23, 1988,
the City authorized the issuance and sale of $9,990,000 par
value of its Water and Sewer Revenue Bonds, 1988 (the 111988
Bonds"), which bonds were issued on a parity of lien with the
1977 Bonds and the 1983 Bonds; and
WHEREAS, by Ordinance No. passed on December 8, 1992,
the City authorized the issuance and sale of $7,805,000 par value
of its Water and Sewer Revenue Refunding Bonds, 1992 (the 111992
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Bonds"), which bonds were issued on a parity of lien with the
1977 Bonds and the 1983 Bonds; and
WHEREAS, by Section 7 of Ordinance No. 1678 the City
reserved the right and option to redeem the 1988 Bonds maturing
on December 1 in the years 1999 through 2001, inclusive, on
December 1, 1998, or on any interest payment date thereafter at
par plus accrued interest to the date fixed for redemption; and
WHEREAS, there are presently outstanding $8,500,000
principal amount of 1988 Bonds maturing on December 1 in the
years 1999 through 2008, inclusive (the 111988 Refunded Bonds")
bearing interest at various rates from 7.30% to 7.50% per annum;
and
WHEREAS, the City Council has determined that the 1988
Refunded Bonds may be refunded by the issuance and sale of the
water and sewer revenue bonds authorized herein so that there
will be a debt service savings to the City and the ratepayers of
combined water and sewerage systems, which refunding will be
effected by:
(a) The issuance of the refunding portion of the bonds
authorized by this ordinance and the payment of the
costs of issuance and refunding; and
(b) The payment of the interest on the 1988 Refunded
Bonds when due up to and including December 1, 1998,
and, on December 1, 1998, the call, payment and
redemption of all of the outstanding 1988 Refunded
Bonds at a price of par;
and
WHEREAS, in order to effect the refunding in the manner that
will be most advantageous to the City and the ratepayers of the
combined water and sewerage systems, the City Council finds it
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necessary and advisable that certain acquired obligations
(hereinafter defined) bearing interest and maturing at the time
or times necessary to accomplish the refunding as aforesaid be
purchased out of a portion of the proceeds of the sale of the
bonds authorized herein; and
WHEREAS, Chapter 39.34 RCW permits a city to enter into a
contract with other cities and water and sewer districts regard-
ing the furnishing of sewage treatment and disposal services,
ownership of treatment facilities, allocation and payment of
costs and performance of obligations under such a contract; and
WHEREAS, on October 26, 1982, the City entered into a
contract with the City of Lynnwood, Washington ("Lynnwood"),
whereby the City and Lynnwood agreed to accomplish the joint
treatment and disposal of the sanitary sewage collected by the
two cities and the City agreed to pay its share of the cost of
that sewage treatment and disposal service and the sewerage works
facilities located in Lynnwood; and
WHEREAS, on May 4, 1990, the City entered into an amendment
to that agreement whereby the City increased its share of the
capacity of that treatment plant, the cost of that increased
capacity being $1,310,000; and
WHEREAS, the City Council has determined it is necessary and
in the best interest of the City that there be adopted a plan or
system for certain improvements of the System, consisting of
paying 54.22% of the cost of constructing a public works
facility, being that portion of the facility to be used for the
System, and the expansion of the City's share of the capacity of
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the sewerage treatment plant in Lynnwood, and that the City issue
its $3,505,000 par value water and sewer revenue bonds for the
purpose of paying the cost of carrying out that plan or system;
and
WHEREAS, Seattle -Northwest Securities Corporation has
offered to purchase the bonds to pay the cost of refunding the
1988 Refunded Bonds and to carry out the plan or system described
above under the terms and conditions herein set forth, and the
City Council has determined it is in the best interest of the
City to accept that offer; 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:
"Acquired Obligations" means United States Treasury
Certificates and Notes --State and Local Government Series or
other direct non -callable obligations of the United States
Government.
"Bond Fund" means the special fund of the City known as the
Water and Sewer Revenue Bond Fund, 1977, created by Ordinance
No. 1957 for the payment of the principal of and interest on the
1977 Bonds and all Future Parity Bonds of the City thereafter
issued, including the 1983 Bonds, the 1988 Bonds, the 1992 Bonds
and the Bonds.
"Bonds" means the $5,785,000 par value Water and Sewer
Revenue and Refunding Bonds, 1993, of the City authorized to be
issued by this ordinance.
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111977 Bonds" means the outstanding Water and Sewer Revenue
Refunding and Construction Bonds, 1977, of the City issued under
date of November 1, 1977, pursuant to Ordinance No. 1957.
111983 Bonds" means the outstanding Water and Sewer Revenue
Bonds, 1983, of the City issued under date of May 1, 1983,
pursuant to Ordinance No. 2363.
111988 Bonds" means the outstanding Water and Sewer Revenue
Bonds, 1988, of the City issued under date of September 1, 1988,
pursuant to Ordinance No. 2678 maturing up to and including
December 1, 1998.
111988 Refunded Bonds" means the 1988 Bonds maturing on
December 1 of each of the years 1999 through 2008, inclusive.
111992 Bonds" means the outstanding $7,805,000 Water and
Sewer Revenue Refunding Bonds, 1992, of the City issued under
date of December 1, 1992, pursuant to Ordinance No.
"City" means the City of Edmonds, Washington, a duly
organized and existing noncharter code city under the laws of the
State of Washington.
"Coverage Requirement" means 1.25 times the portion of
annual debt service, excluding the principal of any Term Bonds if
the payment for such Term Bonds is being provided for by a
sinking fund, on the 1977 Bonds, the 1983 Bonds, the 1988 Bonds,
the 1992 Bonds, the Bonds and any Future Parity Bonds actually
paid from the Revenue of the System and not from ULID
Assessments, after payment of Operating and Maintenance Expenses.
"Future Parity Bonds" means all revenue bonds of the City
issued after the date of the issuance of the Bonds and having a
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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 1977 Bonds, the 1983 Bonds, the 1988 Bonds, the 1992 Bonds
and the Bonds.
"Government Obligations" means direct obligations of or
obligations the principal of and interest on which are
unconditionally guaranteed by the United States of America.
"Operating and Maintenance Expenses" means 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.
"Plan of Additions" means the system or plan of additions
and improvements to the System specified, adopted and ordered to
be carried out by Section 2 of this ordinance.
"Principal and Interest Account" means the account of that
name created in the Bond Fund for the payment of the principal of
and interest on the 1977 Bonds, the 1983 Bonds, the 1988 Bonds,
the 1992 Bonds, the Bonds and all Future Parity Bonds of the City
payable out of that fund.
"Refunding Plan" means:
(a) the placement of sufficient proceeds of the Bonds
which, with other money of the City, will acquire the
Acquired Obligations to be deposited with cash with the
Refunding Trustee;
(b) the payment of the interest on the 1988 Refunded
Bonds when due up to and including December 1, 1998,
and, on December 1, 1998, the call, payment and
redemption of all of the outstanding 1988 Refunded
Bonds at par; and
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(c) the payment of the costs of issuing the Bonds and
carrying out the Refunding Plan.
"Refunding Trust Agreement" means that contract between the
City and the Refunding Trustee providing for carrying out the
Refunding Plan.
"Refunding Trustee" means Puget Sound National Bank of
Tacoma, Washington.
"Reserve Account" means the account of that name created in
the Bond Fund for the purpose of securing the payment of the
principal of and interest on the 1977 Bonds, the 1983 Bonds, the
1988 Bonds, the 1992 Bonds, the Bonds and all Future Parity Bonds
of the City payable out of that fund.
"Revenue of the System" means 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, bond proceeds, and earnings on funds held for
payment to the United States of America under Section 148 of the
Internal Revenue Code of 1986, as amended.
"System" means 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 1977 Bonds, the 1983 Bonds, the 1988 Bonds, the 1992 Bonds,
the Bonds and any Future Parity Bonds are outstanding.
"Term Bond Maturity Year" means any maturity year in which
the outstanding principal amount of revenue bonds payable out of
the Bond Fund scheduled to mature (regardless of any reservation
of rights of redemption prior to maturity) is more than 1.25
times the average annual principal maturity of the bonds payable
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out of that fund for the three years immediately preceding the
Term Bond Maturity Year.
"Term Bonds" means Bonds maturing in 2013 and the
outstanding bonds payable out of the Bond Fund maturing in any
Term Bond Maturity Year.
"ULID" means utility local improvement district.
"ULID Assessments" means 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 or System Adopted. The City specifies,
adopts and orders the carrying out of a plan or system for the
construction of improvements of the System, consisting of the
construction of a portion of a public works facility, that
portion of which is to be used by the System, at an estimated
cost of $2,055,000 for the portion to be used by the System,
which cost shall be paid from part of the proceeds of the bonds
authorized herein, and expansion of the capacity of the City at
the Lynnwood sewerage facilities pursuant to the "Amendment to
Agreement for Joint Use of Sanitary Sewerage Facilities between
City of Edmonds and City of Lynnwood" entered into on May 4,
1990, at a cost of $1,450,000, which cost shall be paid by a
portion of the proceeds of the bonds authorized herein, for a
total cost of $3,505,000.
There shall be included in the foregoing all necessary
appurtenances, together with all work as may be incidental and
necessary to the foregoing construction and installation.
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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 such plan.
The City Council may make such changes in the details of
such 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 such plan or the services to be rendered thereby.
The life of the improvements comprising the foregoing plan
or system of improvements of the System is declared to be at
least 25 years.
Section 3. Compliance with Parity Provisions. In accord-
ance with the provisions of Section 16 of Ordinance No. 1957, and
Section 3 of Ordinance No. 2363, the City Council finds and
declares that:
(1) At the time of issuance of the Bonds, there
will be no deficiency in the Bond Fund or the Reserve
Account therein;
(2) No ULID is created in connection with the issuance
of the Bonds;
(3) Provision is made herein for the payment of
the principal of. and interest on the Bonds out of the
Bond Fund;
(4) Provision is made herein for the deposit from
proceeds of the Bonds of the required additional amount
in the Reserve Account of the Bond Fund for the Bonds;
and
(5) At the time of issuance of the Bonds, there
will be on file with the City a certificate from an
independent licensed professional engineer experienced
in the design, construction and operation of municipal
utilities, or another qualifying independent licensed
professional engineer, showing that, in his
professional opinion, the annual Revenue of the System,
after payment of Operating and Maintenance Expenses,
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available for debt service on the 1977 Bonds, the 1983
Bonds, the 1988 Bonds, the 1992 Bonds and the Bonds for
each year shall be at least equal to the Coverage
Requirement.
Section 4. Purpose and Description of Bonds. For the
purpose of providing the funds to pay the cost of carrying out
the Plan of Additions, to pay the cost of carrying out the
Refunding Plan and to pay the costs of issuance of the Bonds
("costs of issuance"), the City shall issue the Bonds in the
principal amount of $5,785,000.
The Bonds shall be dated October 1, 1992; shall be in the
denomination of $5,000 or any integral multiple thereof within a
single maturity; shall be numbered separately in the manner and
with any additional designation as the Bond Registrar (collec-
tively, the fiscal agencies of the State of Washington located in
Seattle, Washington, and New York, New York) deems necessary for
purposes of identification; and shall bear interest at the rates
set forth below (computed on the basis of a 360 -day year of
twelve 30 -day months), payable on December 1, 1992, and
semiannually thereafter on each succeeding June 1 and December 1,
and shall mature on December 1 in years and amounts as follows:
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Maturity
$ 35,000
Interest
Years
Amounts
Rates
1993
130,000
3.00%
1994
125,000
3.60
1995
130,000
4.10
1996
185,000
4.40
1997
210,000
4.70
1998
225,000
4.90
1999
725,000
5.00
2000
925,000
5.20
2001
845,000
5.40
2002
105,000
5.55
2003
135,000
5.70
2004
140,000
5.90
2005
145,000
6.00
2006
130,000
6.05
2007
130,000
6.15
2008
205,000
6.20
2013
1,295,000
6.25
The following table sets forth the maturity years and
principal amounts of the Bonds issued to carry out the Refunding
Plan:
Maturity
Years Amounts
1993
$ 35,000
1994
25,000
1995
25,000
1996
25,000
1997
30,000
1997
30,000
1998
30,000
1999
660,000
2000
705,000
2001
745,000
Section 5. Registration and Transfer of Bonds. The Bonds
shall be issued only in registered form as to both principal and
interest and recorded on books or records maintained by the Bond
Registrar (the "Bond Register"). The Bond Register shall contain
the name and mailing address of the owner of each Bond and the
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principal amount and number of each of the Bonds held by each
owner.
Bonds surrendered to the Bond Registrar may be exchanged for
Bonds in any authorized denomination of an equal aggregate
principal amount and of the same interest rate and maturity.
Bonds may be transferred only if endorsed in the manner provided
thereon and surrendered to the Bond Registrar. Any exchange or
transfer shall be without cost to the owner or transferee. The
Bond Registrar shall not be obligated to exchange or transfer any
Bond during the fifteen days preceding any principal payment or
redemption date.
Section 6. Payment of Bonds. Both principal of and
interest on the Bonds shall be payable in lawful money of the
United States of America. Interest on the Bonds shall be paid by
checks or drafts mailed by the Bond Registrar on the interest
payment date to the registered owners at the addresses appearing
on the Bond Register on the fifteenth day of the month preceding
the interest payment date. Principal of the Bonds shall be
payable upon presentation and surrender of the Bonds by the
registered owners at either of the principal offices of the Bond
Registrar at the option of the owners.
Section 7. Optional and Mandatory Redemption and Open
Market Purchase of Bonds. Bonds maturing in the years 1992
through 2002, inclusive, shall be issued without the right or
option of the City to redeem those Bonds prior to their stated
maturity dates.
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The City reserves the right and option to redeem the Bonds
maturing on or after December 1, 2003 prior to their stated
maturity dates on or after December 1, 2002, as a whole at any
time, or in part on any interest payment date.within one or more
maturities selected by the City (and by lot within a maturity in
such manner as the Bond Registrar shall determine), at par plus
accrued interest to the date fixed for redemption.
Bonds maturing in 2013 are Term Bonds and, if not redeemed
under the optional redemption provisions set forth above or
purchased in the open market under the provisions set forth
below, shall be called for redemption by lot (in such manner as
the Bond Registrar shall determine) at par plus accrued interest
on December 1 in years and amounts as follows:
Mandatory Mandatory
Redemption Redemption
Years Amounts
2009
$225,000
2010
245,000
2011
260,000
2012
275,000
2013
290,000
In the event that the City shall redeem Term Bonds under the
optional redemption provisions set forth above or purchase Term
Bonds in the open market as set forth below, the Term Bonds so
redeemed or purchased (irrespective of their redemption or
purchase price) shall be credited at the par amount thereof
against last scheduled mandatory redemption amount.
Portions of the principal amount of any Bond, in install-
ments of $5,000 or any integral multiple thereof, may be
redeemed. If less than all of the principal amount of any Bond
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is redeemed, upon surrender of that Bond at either of the
principal offices of the Bond Registrar, there shall be issued to
the registered owner, without charge therefor, a new Bond (or
Bonds at the option of the registered owner) of the same maturity
and interest rate in any of the denominations authorized by this
ordinance in the aggregate principal amount remaining unredeemed.
The City further reserves the right and option to purchase
any or all of the Bonds in the open market at any time at any
price acceptable to the City plus accrued interest to the date of
purchase.
All Bonds purchased or redeemed under this section shall be
cancelled.
Section S. Notice of Redemption. The City shall cause
notice of any intended redemption of Bonds to be given not less
than 30 nor more than 60 days prior to the date fixed for
redemption by first-class mail, postage prepaid, to the regis-
tered owner of any Bond to be redeemed at the address appearing
on the Bond Register at the time the Bond Registrar prepares the
notice, and the requirements of this sentence shall be deemed to
have been fulfilled when notice has been mailed as so provided,
whether or not it is actually received by the owner of any Bond.
Interest on Bonds called for redemption shall cease to accrue on
the date fixed for redemption unless the Bond or Bonds called are
not redeemed when presented pursuant to the call. In addition,
the redemption notice shall be mailed within the same period,
postage prepaid, to Moody's Investors Service, Inc., and Standard
& Poor's Corporation at their offices in New York, New York, or
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their successors, to Seattle -Northwest Securities Corporation at
its principal office in Seattle, Washington, or its successor,
and to such other persons and with such additional information as
the City Director of Finance shall determine, but these
additional mailings shall not be a condition precedent to the
redemption of Bonds.
Section 9. Failure to Redeem Bonds. If any Bond is not
redeemed when properly presented at its maturity or call date,
the City shall be obligated to pay interest on that Bond at the
same rate provided in the Bond from and after its maturity or
call date until that Bond, both principal and interest, is paid
in full or until sufficient money for its payment in full is on
deposit in the Bond Fund and the Bond has been called for payment
by giving notice of that call to the registered owner of that
unpaid Bond.
Section 10. Deposits to Bond Fund. So long as Bonds are
outstanding against the Bond Fund, the City Director of Finance
shall set aside and pay into the Bond Fund out of the Revenue of
the System, in addition to the amounts to be deposited therein
for the 1977 Bonds, the 1983 Bonds, the 1988 Bonds and the 1992
Bonds 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 1977 Bonds, the 1983 Bonds, the 1988 Bonds, the 1992
Bonds, the Bonds and any Future Parity Bonds hereafter
issued and outstanding and an amount sufficient to pay the
interest payable on the 1977 Bonds, the 1983 Bonds, the 1988
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Bonds, the 1992 Bonds, the Bonds and those Future Parity
Bonds on such interest payment date; and
(b) Into the Reserve Account from money legally
available to be used therefor such amount so that on and
after the date of delivery of the Bonds to the purchaser
thereof and payment therefor, 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 1977 Bonds, the 1983 Bonds, the 1988 Bonds,
the 1992 Bonds and the Bonds, excluding the principal of any
Term Bonds if the payment for such Term Bonds is being
provided for by a sinking fund.
The Reserve Account shall be maintained at that total
average annual debt service required reserve amount, except for
withdrawals therefrom as authorized herein, at all times so long
as any of the 1977 Bonds, the 1983 Bonds, the 1988 Bonds, the
1992 Bonds, the Bonds and any Future Parity Bonds are
outstanding; except that the amount in the Reserve Account may be
reduced at any time to an amount not less than the average annual
debt service requirements for the 1977 Bonds, the 1983 Bonds, the
1988 Bonds, the 1992 Bonds, the Bonds and any Future Parity Bonds
then outstanding. 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.
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,
that 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
0050460.02
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shall then be made up 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 of 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.
In the judgment of the City Council, the Revenue of the
System anticipated to be derived from the operation and mainte-
nance of the System will be more than sufficient to pay 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 1977 Bonds, the
1983 Bonds, the 1988 Bonds, the 1992 Bonds and the Bonds when due
and to pay and redeem all of the 1977 Bonds, the 1983 Bonds, the
1988 Bonds, the 1992 Bonds and the Bonds at maturity or earlier
mandatory redemption date.
The City Council further declares that in fixing the amounts
to be paid into the Bond Fund it has considered and had due
regard for Operating and Maintenance Expenses (and the cost of
operation and maintenance as used in RCW 35.92) and has not set
aside into the Bond Fund a greater amount or proportion of the
0050460.02
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Revenue of the System that in its judgment will be available over
and above Operating and Maintenance Expenses (and such cost of
operation and maintenance), and that no portion of the Revenue of
the System has been previously pledged for any other outstanding
indebtedness except for payment of the 1977 Bonds, 1983 Bonds,
1992 Bonds and 1988 Bonds.
Section 11. Lien Position of Bonds. All Revenue of the
System is pledged to the payments required to be made into the
Bond Fund, and the Bonds shall constitute a charge and lien upon
that Revenue prior and superior to all other charges and liens
whatsoever, excluding Operating and Maintenance Expenses, except
that the charge and lien upon that Revenue for the Bonds shall be
on a parity with the charge and lien upon that Revenue and upon
any ULID Assessments hereafter pledged to be paid into the Bond
Fund for the 1977 Bonds, the 1983 Bonds, the 1988 Bonds, the 1992
Bonds and any Future Parity Bonds.
Section 12. Refunding of the Refunded Bonds.
(a) Acquisition and Substitution of Acquired Obligations.
Sufficient proceeds of the sale of the Bonds shall be deposited
immediately upon the receipt thereof with the Refunding Trustee
to discharge the obligation of the City to carry out the
Refunding Plan by providing for the payment of the amounts
required to be paid by the Refunding Plan. To the extent
practicable, such obligations shall be discharged fully by the
Refunding Trustee's simultaneous purchase of Acquired Obligations
bearing such interest rates and maturing as to principal and
interest in such amounts and at such times so as to provide for
0050460.02
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the payment of the amounts required to be paid by the Refunding
Plan. The Acquired Obligations are listed and more particularly
described in Schedule A attached to the Refunding Trust
Agreement, but are subject to substitution as set forth below.
Prior to the purchase of any such Acquired Obligations, the
City reserves the right to substitute other direct, non -callable
obligations of the United States of America ("Substitute
Obligations") for any of the Acquired Obligations and to use any
savings created thereby for any lawful City purpose if, (a) in
the opinion of Foster Pepper & Shefelman, the City's bond
counsel, the interest on the Bonds will remain excluded from
gross income for federal income tax purposes under Sections 103,
148 and 149(d) of the Code, and (b) such substitution shall not
impair the timely payment of the amounts required to be paid by
the Refunding Plan as so verified by a nationally recognized firm
of certified public accountants.
After the purchase of the Acquired Obligations by the
Refunding Trustee, the City reserves the right to substitute
therefor cash or Government Obligations subject to the conditions
that such money or securities held by the Refunding Trustee shall
be sufficient to carry out the Refunding Plan, that such
substitution will not cause the Bonds to be arbitrage bonds
within the meaning of Section 148 of the Code and regulations
thereunder in effect on the date of such substitution and
applicable to obligations issued on the issue date of the Bonds,
and that the City obtain, at its expense: (1) verification by a
nationally recognized firm of certified public accountants
0050460.02
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acceptable to the Refunding Trustee confirming that the payments
of principal of and interest on the substitute Acquired
Obligations, if paid when due, and any other money held by the
Refunding Trustee will be sufficient to.carry out the Refunding
Plan; and (2) an opinion from Foster Pepper & Shefelman, bond
counsel to the City, its successor, or other nationally
recognized bond counsel to the City, to the effect that the
disposition and substitution or purchase of such securities,
under the statutes, rules and regulations then in force and
applicable to the Bonds, will not cause the interest on the Bonds
or the Refunded Bonds to be included in gross income for federal
income tax purposes and that such disposition and substitution or
purchase is in compliance with the statutes and regulations-
applicable
egulationsapplicable to the Bonds. Any surplus money resulting from the
sale, transfer, other disposition or redemption of the Acquired
Obligations and the substitutions therefor shall be released from
the trust estate and transferred to the City to be used for any
lawful System purpose.
(b) Administration of Refunding Plan. The Refunding
Trustee is authorized and directed to purchase the Acquired
Obligations (or substitute obligations) and to make the payments
required to be made by the Refunding Plan from the Acquired
Obligations (or substitute obligations) and money deposited with
the Refunding Trustee pursuant to this ordinance. All Acquired
Obligations (or substitute obligations) and the money deposited
with the Refunding Trustee and any income therefrom shall be held
irrevocably, invested and applied in accordance with the
0050460.02
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provisions of ordinance No. 2678, this ordinance, Chapter 39.53
RCW and other applicable statutes of the State of Washington, and
the Refunding Trust Agreement. All necessary and proper fees,
compensation and expenses of the Refunding Trustee for the Bonds
and all other costs incidental to establishing the escrow to
accomplish the refunding of the outstanding Refunded Bonds and
costs related to the issuance and delivery of the Bonds,
including bond printing, rating service fees, insurance premiums,
verification fees, bond counsel's fees and other related
expenses, shall be paid out of the proceeds of the Bonds.
(c) Authorization for Refunding Trust Agreement. In order
to carry out the Refunding Plan provided for by this ordinance,
the Mayor or City Finance Director is authorized and directed to
execute and deliver to the Refunding Trustee a Refunding Trust
Agreement substantially in the form on file with the City Clerk
and by this reference made a part hereof, setting forth the
duties, obligations and responsibilities of the Refunding Trustee
in connection with the payment, redemption and retirement of the
outstanding Refunded Bonds as provided herein and stating that
the provisions for payment of the fees, compensation and expenses
of the Refunding Trustee set forth therein are satisfactory to
it. Prior to executing the Refunding Trust Agreement, the Mayor
or Finance Director is authorized to make such changes therein
which do not change the substance and purpose thereof or which
assure that the escrow provided therein and the Bonds are in
compliance with the requirements of federal law governing the
0050460.02
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exclusion of interest on the Bonds from gross income for federal
income tax purposes.
Section 13. Call for Redemption of the Outstanding 1988
Refunded Bonds. The City calls for redemption on December 1,
1998, all of the outstanding 1988 Refunded Bonds at par.
Such call for redemption shall be irrevocable after the
delivery of the Bonds to the initial purchaser thereof. The date
on which the 1988 Refunded Bonds are called for redemption is the
next date on which those bonds may be called at a premium of 3%
or less.
The proper City officials are authorized and directed to
cause the fiscal agencies to give such notices as required, at
the times and in the manner required by Ordinance No. 2678 in
order to effect the redemption prior to their maturity of the
1988 Refunded Bonds.
Section 14. Deposit of Bond Proceeds. There has been
created in the office of the Finance Director a special fund of
the City known as the Capital Improvement Fund No. 325 (the
"Construction and Acquisition Fund"). The accrued interest
received from the purchaser of the Bonds shall be deposited in
the Principal and Interest Account of the Bond Fund, and the
remaining principal proceeds of the Bonds after the deposit
required by Section 12 shall be deposited in the Construction and
Acquisition Fund and used to pay the costs of carrying out the
Plan of Additions and the costs of issuance and sale of the new
money portion of the Bonds. Money on deposit in the Construction
and Acquisition Fund may be invested and the investment earnings
0050460.02
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retained in the Construction and Acquisition Fund and used for
the purposes of that fund, except that earnings subject to a
federal tax or rebate requirement may be withdrawn from the
Construction Fund and used for those tax or rebate purposes.
Section 15. Covenants. The City covenants and agrees with
the owner of each Bond at any time outstanding as follows:
(a) It will establish, maintain and collect such rates
and charges for water and sanitary sewage disposal service
so long as any 1977 Bonds, 1983 Bonds, 1988 Bonds, 1992
Bonds and 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 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
1977 Bonds, 1983 Bonds, 1988 Bonds, 1992 Bonds and Future
Parity Bonds, equal to the percentage arrived at by dividing
the original total amount of the ULID Assessments
specifically pledged to the Bond Fund in that issue by the
original total principal amount of that 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 Coverage Requirement.
(b) It will at all times maintain and keep the System
in good repair, working order and condition, and also will
at all times operate the System and the business in
connection therewith in an efficient manner and at a
reasonable cost.
(c) 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 the
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
0050460.02
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disposed of bears to the Revenue available for debt service
for those bonds from the entire System for the same period.
Any money so paid into the Bond Fund shall be used to retire
those outstanding bonds at the earliest possible date.
(d) While any of the Bonds remain outstanding, it will
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 owner or owners of the Bonds, if the Bonds shall
be owned by other than a Fund of the City, at the written
request of such owner or owners, complete operating and
income statements of the 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 that calendar year, and it will
grant any owner or owners 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 owner of any of such
Bonds, it will also furnish to that owner 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) 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.
(f) 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 or, in lieu thereof, after the retirement
or redemption of all of the outstanding 1977 Bonds and 1983
Bonds, or after irrevocable provision is made for the
payment of those bonds, the City may self -insure or
participate in a joint intergovernmental insurance pool or
similar plan providing coverage in the amounts normally
carried by such private water companies, and the cost of
that insurance or self-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 the System on which such War Risk Insurance may be
written in an amount or amounts to cover adequately the
value thereof, except that after the retirement or
redemption of the outstanding 1977 Bonds and 1983 Bonds, or
after irrevocable provision is made for the payment of those
bonds, the City will take out and maintain such insurance
only if available at rates acceptable to the City.
0050460.02
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(g) It will pay all Operating and Maintenance Expenses
and otherwise meet the obligations of the City as herein set
forth.
(h) If a ULID is ever established hereafter in
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 those Assessments being particularly allocated to
the payment of principal and interest on any particular
series of such Future Parity Bonds, including the 1977
Bonds, the 1983 Bonds, the 1988 Bonds, the 1992 Bonds and
the Bonds.
(i) It will take all actions necessary to prevent
interest on the Bonds from being included in gross income
for federal income tax purposes, and it will neither take
any action nor make or permit any use of proceeds of the
Bonds or other funds of the City treated as proceeds of the
Bonds at any time during the term of the Bonds which will
cause interest on the Bonds to be included in gross income
for federal income tax purposes. The City also covenants
that, to the extent arbitrage rebate requirements of Section
148 of Section 148 of the Internal Revenue Code of 1986, as
amended (the "Code"), are applicable to the Bonds, it will
take all actions necessary to comply (or to be treated as
having complied) with those requirements in connection with
the Bonds, including the calculation and payment of any
penalties that the City has elected to pay as an alternative
to calculating rebatable arbitrage, and the payment of any
other penalties if required under Section 248 of the Code to
prevent interest on the Bonds from being included in gross
income for federal income tax purposes.
The City certifies that it has not been notified
of any listing or proposed listing by the Internal
Revenue Service to the effect that it is a bond issuer
whose arbitrage certifications may not be relied upon.
(j) 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 Expense.
(2) To meet the required debt service payments,
including Reserve Account accumulation in the Bond
Fund, on the 1977 Bonds, the 1983 Bonds, the 1988
Bonds, the Bonds and any Future Parity Bonds hereafter
issued.
0050460.02
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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
1977 Bonds, the 1983 Bonds, the 1988 Bonds, the 1992
Bonds, the Bonds and any Future Parity Bonds.
(4) To redeem and retire by optional redemption
or to purchase in the open market any outstanding water
and sewer revenue bonds or obligations of the City, to
make necessary betterments and replacements of or
repairs, additions or extensions to the System, or for
any other lawful purpose.
Section 16. Form and Execution of Bonds. The Bonds shall
be printed or lithographed on good bond paper in a form consis-
tent with the provisions of this ordinance and state law, shall
be signed by the Mayor and City Clerk, either or both of whose
signatures may be manual or in facsimile, and the seal of the
City or a facsimile reproduction thereof shall be impressed or
printed thereon.
Only Bonds bearing a Certificate of Authentication in the
following form, manually signed by the Bond Registrar, shall be
valid or obligatory for any purpose or entitled to the benefits
of this ordinance:
CERTIFICATE OF AUTHENTICATION
This bond is one of the fully registered City of
Edmonds, Washington, Water and Sewer Revenue and Refunding
Bonds, 1993, described in the Bond Ordinance.
WASHINGTON STATE FISCAL AGENCY
Bond Registrar
By
Authorized Officer
The authorized signing of a Certificate of Authentication shall
be conclusive evidence that the Bonds so authenticated have been
duly executed, authenticated and delivered and are entitled to
the benefits of this ordinance.
0050460.02
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If any officer whose facsimile signature appears on the
Bonds ceases to be an officer of the City authorized to sign
bonds before the Bonds bearing his or her facsimile signature are
authenticated or delivered by the Bond Registrar or issued by the
City, those Bonds nevertheless may be authenticated, delivered
and issued and, when authenticated, issued and delivered, shall
be as binding on the City as though that person had continued to
be an officer of the City authorized to sign bonds. Any Bond
also may be signed on behalf of the City by any person who, on
the actual date of signing of the Bond, is an officer of the City
authorized to sign bonds, although he or she did not hold the
required office on the date of issuance of the Bonds.
Section 17. Bond Registrar. The Bond Registrar shall keep,
or cause to be kept, at its principal corporate trust office,
sufficient books for the registration and transfer of the Bonds
which shall at all times be open to inspection by the City. The
Bond Registrar is authorized, on behalf of the City, to
authenticate and deliver Bonds transferred or exchanged in
accordance with the provisions of the Bonds and this ordinance,
to serve as the City's paying agent for the Bonds and to carry
out all of the Bond Registrar's powers and duties under this
ordinance and City Ordinance No.'2451 establishing a system of
registration for the City's bonds and obligations.
The Bond Registrar shall be responsible for its representa-
tions contained in the Bond Registrar's Certificate of Authenti-
cation on the Bonds. The Bond Registrar may become the owner of
Bonds with the same rights it would have if it were not the Bond
0050460.02
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Registrar and, to the extent permitted by law, may act as
depository for and permit any of its officers or directors to act
as members of, or in any other capacity with respect to, any
committee formed to protect the rights of Bond owners.
Section 18. Bonds Negotiable. The Bonds shall be negoti-
able instruments to the extent provided by RCW 62A.8-102 and
62A.8-105.
Section 19. 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 1977 Bonds, the 1983 Bonds, the 1988 Bonds,
the 1992 Bonds and the Bonds if the conditions set forth in
Section 16 of Ordinance No. 1957, as amended by Section 3 of
Ordinance No. 2363, shall be met and complied with at the time of
the issuance of those Future Parity Bonds, which sections are
incorporated herein and made a part of this ordinance.
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 of 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
0050460.02
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issuing revenue bonds to refund maturing revenue bonds of the
City for the payment of which money is not otherwise available.
Section 20. Refunding or Defeasance. 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 a refunding or defeasance
plan as the same become due and payable and to refund or defease
all such then outstanding Bonds and to pay the costs of refunding
or defeasance, and shall have irrevocably set aside for and
pledged to such payment, refunding or defeasance, money and/or
Government Obligations sufficient in amount, together with known
earned income from the investment thereof, to make such payments
and to accomplish the refunding or defeasance as scheduled
(hereinafter called the "trust account") and shall make
irrevocable provision for the redemption of those Bonds, then in
that case the Bonds shall be defeased (hereinafter called the
"defeased Bonds"). Thereafter, all right and interest of the
owners of the defeased Bonds in the covenants of this ordinance,
in the Revenue of the System, and in funds and accounts,
including ULID Assessments, obligated to the payment of the
defeased Bonds shall cease and become void, except the owners
shall have the right to receive payment of the principal of and
interest on the defeased Bonds from the trust account. After the
establishing and full funding of the 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
0050460.02
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purposes as it shall determine, subject only to the rights of the
owners of any other bonds then outstanding.
In the event that the refunding plan provides that the Bonds
being refunded the refunding bonds to be issued be secured by
cash and/or direct obligations of the United States of America or
Government Obligations pending the prior redemption of those
Bonds being refunded and if such refunding plan also provides
that certain cash and/or direct obligations of the United States
of America or Government Obligations are irrevocably pledged for
the prior redemption of those Bonds included in the refunding or
defeasance 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 21. Sale and Delivery of Bonds and Preliminary
Official Statement Deemed Final. Seattle -Northwest Securities
Corporation of Seattle, Washington, has presented a bond purchase
contract (the "Bond Purchase Contract") to the City offering to
purchase the Bonds under the terms and conditions set forth in
the Bond Purchase Contract, which written Bond Purchase Contract
is on file with the City Clerk and is incorporated herein by this
reference. The City Council finds that entering into the Bond
Purchase Contract is in the City's best interest and therefore
accepts the offer contained therein and authorizes its execution
by City officials. The Bonds will be printed at City expense and
0050460.02
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will be delivered to the purchaser in accordance with the Bond
Purchase Contract, with the approving legal opinion of Foster
Pepper & Shefelman, municipal bond counsel of Seattle,
Washington, regarding the Bonds printed on each Bond. Bond
counsel shall not be required to review and shall express no
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.
The City Council has been provided with copies of a
preliminary official statement dated November 30, 1992 (the
"Preliminary Official Statement"), prepared in connection with
the sale of the Bonds and for the sole purpose of the purchaser's
compliance with Securities and Exchange Commission Rule 15c2 -
12(b)(1), the City "deems final" that Preliminary Official
Statement as of its date, except for the omission of information
as to offering prices, interest rates, selling compensation,
aggregate principal amount, principal amount per maturity,
options of redemption, delivery dates, ratings and other terms of
the Bonds dependent on such matters.
The proper City officials are authorized and directed to do
everything necessary for the prompt delivery of the Bonds to the
purchaser and for the proper application and use of the proceeds
of the sale thereof.
Section 22. Temporary Bond. Pending the printing, execu-
tion and delivery to the purchaser of definitive Bonds, the City
may cause to be executed and delivered to the purchaser a single
0050460.02
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temporary Bond in the total principal amount of the Bonds. The
temporary Bond shall bear the same date of issuance, interest
rates, principal payment dates and terms and covenants as the
definitive Bonds, shall be issued as a fully registered Bond in
the name of the purchaser, and otherwise shall be in a form
acceptable to the purchaser. The temporary Bond shall be
exchanged for definitive Bonds as soon as they are printed,
executed and available for delivery.
Section 23. Effective Date. This ordinance, being an
exercise of a power delegated to the City legislative body, is
not subject to referendum, and shall take effect five days after
its passage and 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 8th day of December, 1992.
CITY OF EDMONDS, WASHINGT
B
Mayor
ATTEST:
Cit Clerk
FORM APPROVED:
Bo Counsel
FILED WITH THE CITY CLERK; December 8, 1992
PASSED BY THE CITY COUNCIL: December 8, 1992
PUBLISHED: December 14, 1992
EFFECTIVE DATE; December 19, 1992
ORDINANCE NO. 2904
0050460.02
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RECEIVE
DEC 151992
Affidavit of Publication 'Edmonds City Clerk
STATE OF WASHINGTON, ss
COUNTY OF SNOHOMISH,
The undersigned, being first duly sworn on oath deposes and says
that she is Principal Clerk of THE HERALD, a daily newspaper
printed and published in the City of Everett, County of Snohomish,
and State of Washington; that said newspaper is a newspaper of
general circulation in said County and State; that said newspaper
has been approved as a legal newspaper by order of the Superior
Court of Snohomish County and that the notice ........................................
City of Edmonds
.............................................................................................................................
Ordinance No. 2904
.................................................... ....................... ....................................................
....................................................................................................................
a printed copy of which is hereunto attached, was published in said
newspaper proper and not in supplement form, in the regular and
entire edition of said paper on the following days and times, namely:
December 14, 1992
................................................. .................................................................................
------------------------------------------------------------------------------------------------- ...................................
and that said newspaper was regularly distributed to its subscribers
during all of sai :period.
........................fix ......... :. .... ..................L.------------- .
Principal Clerk
Subscribed and sworn to before me this ..........14.. h
ay o D emb r
..... .................... ... ...... ........ --- .........-----...------ ---
Not ryu lie in for the a
res ding at Everett, Snohomish County.
8-2-1
;'F152m; 11.:�y times •mar-vnwnnv.,,�-, o..�....,.....,._.__"�.rr.„��. .t - -. jC
aper ng;Revenue and"„of.AssessmeMs). on 4. u , an o^ 'no a lan'of
.determining whether the City is Ob k to. comely w""he
xwty,conditions the Revenue•of..the System o, the City, less ACdtions,fo.pay.thecost'oft InQouttheRefundin Planohd.
i of Of ssuance') -o
0pe ng and Waintenance Expenses; for any twel e-consecu- to Pay'Me costsIss Issuance of the Bonds ("costs l
live calendar months out of the Immediately precede twerhty. the Civ shall .issue the Bonds In the Principal iimouM;.of.± f
tour consecutive months Shell be used. The following a/�ustme SS 785,000 c
may be mode to the hl lcol net aPKaHng Revenue o< the derWe' Bonds' off 5,0 0 dated v Integral al mu p e fherleaf wllhin a � s
Svstem: . ' \” y 1ty, pq
.Any•rate chorhpe chat hostaken_PIOce or beew6pP►oved, withl any odd anal numbered
swtherBOnd In
Registrar (co1Nc- 4 f
.maY ore reflectedof
"(2).Reuenue may be added from'customers actually added HveI emhN�hscal aon, and New ak New York)deems necessary
.�
to '.System.subseque„ftothe ,l2•momhbasePe•1�:ates
(3) Revenue may bbee odded`from cussftoomers to be served by for Purposenlowl(comPuted on thehbasis of la 360 davmyear of h
the improvements bele% constructed out bf jhe.proceeds of the set forth le on December 1 1992, and'1
'Future Par Bonds to be Issued; and twelve 30 -day months), 'payable
lo) . A full years revenue may be -included from any semlonnually thereafter on each succeeding June l and Decem-.' i
customer being served, but who has not been receiving service b¢r 1, and shall mature on December 1 !n Years and amounts' • '
for tife full period. of operaHOn used CPS a bosh'. fOr the WNW. foil � Years Amounts Interest Rates
cafe• and , h.. M 3.00%
(t) A'ctual:or reasonably anficlPatedchhi to the Opera• 130,000 3.60
ting'pnd:Malydenance.'Exppeenses subsequent such 12•morttl 1 q 125000 4,t0
a�perlod shall be added.or•:dedUcted, os Is applicable ..,..; t"s 130000. 40 t
185,00 A
WHEREAS, . bV .. I" r— 2363 passed on- April 22 1983, the . ,1997 210,000. 4.70 '
G�}y authorized Hhe Issuance of $l 000(00 Par value O� Its Water '1998. 225 00 . 4.90 . .
and. Sewer Revenue Bonds 1.983. (tike ' 1983 Bonds'), which bonds 725;000 5.00
were Issued on arty, of Slee w the 1977 Bonds; and 00 925,00 5.20 ,
((SS))WHEREAS,,by rdinonce.No. 2363'the first subsections (4) and2001 845,000
5.40
IS)folof Sena 16 off Ndinance No.,' 19 7 were amended to read a5 3003 135A00. 5"55,
5.10,
"(4) The ordinanbe authorizing any Future Partly Bonds shall• '2004 140,00 t5. 00
90
4equire,Mat the Reserve Account be increased wtthln-0 Period 2005 145,00 <'6
of live Years.crfter.the date o..Issuance of the Future Party X06 130,000 6,05'
Bonds to an, amount equal to the averaag9ee annual prince I and 130,000 .6.15
Interest reO61reme^ts on. all Future ParltV'Bonds, Indu Ing M n2 g 705 .20 b.t0 .
Bonds` and. the • Future .Polty Bonds proposed to be 'Issued, .. 6,25
excluding from such amountthe principal amount of any Term _2013. 1,295 p00
Bondi included In the Future Parity Bonds Issue t the Payment me following table sets forth the maturity and Principal
for•s(lcb Term Bonds .Is being Provided for bvv, o sinking, fund. amounts of the Maturity sued to carry out the Refunding Plan:,..
(5).At the time of the Issuance certificate f sufro ure Party Bonds Y rs Am��
1he,CitV.shall have On },911n expe from on the design
n{ '
licensed.. Professional el mot.. experienced In the design
construction and operation of.municlpal venues, showing Choi 1994 2500
In'hWprofessionOl'oolnion; the annual Revenue of the•s avoll, 1995 25,00 +
otter, payment at Operating ond'Molnfenonce Expenses then 30,000 '~ 7
able for debt service On the Bonds, Future Par , Bonds then 1"7 30000
outstanding and the Future Party Bonds Props t0 beequir , 660,000 r7 E
ton each year sf)all-be of least equal to the C vKope Require -
meet. 99
2° . ' 705,00
and HEREAS, by Ordinance No. 2678�possed on Au Ust 23, 1988, 2001 745,00 r.
the City authorized the issuance and sale of $9 990 00 Por volue tenon 5. R IslraHon and Transfer of Bonds. Bonds crest
.of tfs•Water. and SewerRevenue Bonds 1,988 (fthe 1988 Bonds );is TO DOM P
which bonds were Issued oh a pant ,of hen with the .1977 Bonds rand recorded on books or records mointoinedbY. Bond Re Is-,
,and the 1983 Bonds` and tar (the "Bon d•Regi sfer") The Bond Register shads contoirs'
WHEREAS, coy 6rdinonce No.; passed on December 8, home and mailing oddress of the owner of each Bond and the`
1992; the City authorized the Issuance
and
sale of $7 805,000 par principal amourrt, and number of each of the Bonds Mld byed�c„
value •af• its, Woterhand Sewer Revenue Refunding nds, 1992 .owner.
(the "1992 Bonds') which bonds were issued On a parity of lien Bonds surrendered to the_Bond Re4lstror•'may be exchdnged
with the 1QT1' Bands and the 1983 Bonds; and for'Bonds•In any authorized denomination Of en equot aggregate
WHPEeFR ' bV Becton '7 of Ordinance No. 1676 the City princlpal amount and of the same (merest .rate and matur(iy,. -
reserved tHhhe rippM and option to, redeem the 1988 Bonds maturing Bonds may be transferred only If endorsed . In the manner
on Ditcember' 1 In.the years 1999 through 2001, Incluslve,'on provided thereon. and 'surrendered to the Bond Reaistror'. h4hY-
December 1,.1998 or on any Interest payment date thereater at ,xchange or transfer' shall be without cost to the owndr or,.
par plus acttued imerest'to Me dote fixed for redemppti�on; and , transferee. The Bond Registrar shall not be obligated to exchange
WHEREAS there are preserhtly outstanding S8 500,000 princlpal o transfer any .Bond durin4 the fifteen days preceding, Onyx
cmoLrlf of 19f;S,Bonds mafurlr)a on December 1. n the ears 1999 rincipal payment or redemption date.
throy6tt '�08, inclusive •(the '1988 Refunded Bonds') bearing principal
6. Pa them of Bonds. Both Principal of and interest3ri
Interest varlais rales.from 1.30% to 7.50% per annum' and M y��( g•pap�l€1 awful money of the Unted Slates
WHEREAS, the lift, Connell has determined that file 1988 of America. -interest on the Bonds shall be Paid by checkt -or
Refunded Bonds may be. refunded byy�theAssuance and sale of the drafts moiled by the Bond Registrar on the Interest payment date
wakr ordd•s6t se r icenue.bos to the Cit ed:hereln so that Mere Register on the fifteen day of the month precedkq the Interest,
will be •o'debt servltt ovinps. to. the CMy'and.fhe ratePaYers of to the registered owners at the addresses appearing on the Bond .
combined -water and sewerage systems, which refunding will be. payment date Principal of the Bondsshall be payable ShPon ,
effecteq b the eepq to
((a)'The ssUance'of Me refunding portlonof ihe.bonds author= 'ovmersmHat eitherdofsthe principal offices ofdthe Bond Registrar o I
(zed by;t is ordlnunce and thepayment of the costs of issuancethe option of the.owners,
and-r;funding; and Y� Section 7. tonal and Mandol Rede and O en 1
„•, The, payment of the Interest on ,the -1988 F3efunded Bonds ur n on s m ng, n years
wft6n, due up to and including'Oecember 1, 1998, and,, on TIM be Issued without the= or option
.DecemberA 1998 the call, por and redemption• of all' Of of the City to redeem }hose Bonds prior to Meir stated maturityr'
the;oufstandfng 198 Refunded Bnds at a'price of par;
'TWHEREAS;,In,Order to effect therefundln0 in Me manner that
tdathe City -reserves lithe right and option to redeem the;Borids
'will•be'most.odvantogeotMtoo tthe•C. and the.tryatepayers of the. j t&tty dateson on or Decemberber 103_p[dor-ta foie ata ny
rocnec Ss wand.odvlssobte thou fen aeduireeddnobligations -time, lir In part on any intere�st�pay of date'w�ithI o rmore
aaryry CC maturities selected by the City (and by' lot within a moturltvAh
�(hereirhater, defined) bearing,dnterest and,maturinaagsS at the time. or. eq I _ .
e m es deohd of o •porton lOfhtlhee a�edlrig f S afore eat Me be such
Interest tmoet a Bond
flxedYor redemePHonine){ at Par Plus
bonds authorized herein; and �}y ',i Bonds maturing in 2013, are Term Bonds and t not -redeemed
, �Pnt'� yEyAltSj ChOPt jr 39,11 RCC Pod its 0 distrmlcfs repardlrp ros
punch s¢d IuHtheoP¢�^ market �undersithe Prns ovtsfolo s ase�'tvfdpth
b Fp,eytl shplldeterrtl a trued Interest
the.fucn{shinp of sew ma
ng,g,ee.treotment'and disposal services nen- a w, shall be called for redemption by lot (in sucrued Interest
ship Of ireatmerrt•faclltlerys,.allOcm�lUon and PaVme_�n�tnoddl.aOshs and me - - -
pedormbnce.af�h)i 0 26uI" trie tv entteredinto-a•eomrg4t 4 Redemption 1 Redemption
WHEREEAAS; on: ebb Amounts
with the City of Lynmvo6d, Washington ((Lynnwood") thereby Years
-the Cit and Lynnwood agreed to -accomplish the holm �,edtment 6
and _dlsposol'of the sanitary sewage col ected by the two dies X10 0..ri
�dntl Me CIN agreed to pay its share of the coste sof that sewo0¢ .. 20011 ,000
26275,00 ,«..,.
treahnent and disposal service and thewerage works tacit es - 2012
Iocated IvSoo4 and 2013 290,00 ♦ ..
;WHEREASj,on•May.'�, 1990. the CtCientered- into , is •amend- tv Te
mentta that 000reement whereby the increased th'share of opo a redemption Pro Intonsasef f�ort�th above oBonds
y chasnde Tim
:the; c1.}V.af"Inat lireahnem,ploM; the cost of that Intteased,
Cdpac being 51:310,000; .and � � ' ` ' � - '.Bonds. in the open market as set forth below the erm Bonds so
ase• w:. r Hv Mond
has determined. Is oecessarv.and redeemed or :Purehasehd (irrespectiverat.thef� ��r redemption'eo,
,Wa)er and sewer, tsonas
e'cost of corrYirhg'9uf th tan o system; and w eq urge therefof or anSome ew �fyI Interest
qurchose (the bonds to pay the cost�•refunding the nythe ation: hasr6f ither dened omminationshauMwizedbY fnlseordinan a ren fhc
inded Bonds and to.,carry .Out• -the. Plan o system opgrheegCaM Purnthc er reserves the fight andropho^ to purchase and
above under Me tetras dnd,condtions hereln set•fOrth T
;fly Council has determined it. Is in Me best;lmerest of or all of a Bonds in the, open market at any time at any price
;,accept that offer•. NOW,THEREFORE occeafable. to the City, plus accrued interest to the tlate +o
TY'COUNCIL OF ,NE-,dTY.OF ED'MOiNDS, WASHING- purA,, nds Purchased oc'redeemed•under this section Shah bh
t3RDAIN;:as follows: • .. '• ' • •
1: Defintlorm As useddn this ordinance the following conccelllloend 8 Notice of Redem on: The City shall cause notice a
mrtapElrt€Titlowing theonings:+- to,U¢ given not less man•31
*ed ObItgations,, means•UnIted States.Treesury Certifl- an .
( Notes — State and Local GovernmeM`Serlwor- dther •nor :more than 60 days prior to the date fixed for redemption b'
h.c011ab1e obllgatiorls of the United States Government. Hrst•closs mall, postage prepaid, to the gistowner.owner. of
ndnSewer Reveh BBondn Fu d e 1977 k created tie ReglBonselger a f te redeem the ntB honed Rear are � es the ^° a 8°
e No. 1957 foYthe PPaayymem, e P IrincipalBonds of tthe'�City ffuulfilleduwhen notice has sentence
emailed as so Pr v d�edmwhetheerr o
ie• 1977 Bonds pnd,nll tufure Party
r issued including the 1983', Bonds, the 1988 Bonds; the • �nMs� calledetovr received
e emption fslall cease to navccrue on ��datt
de and
tine Bonds •''.
,.meons the $S:nS oar'voiue Wcrer and 'Sewer fixed for redemption unless the Bond _o Bonds rolled are na
Viand Refunding Bonds;.1993, of the,CliVioufhorized to -be redeemededd when Presented
umaled w Thin It. In
sometlo l«
tis ordinance.
gond -means the a nd(ng rWater and 'Sewer, postage prepaid, to Moodce, st Y's investors Servkr Inc., and Stantfar
Refurytllrjp. andlons9rnOrdinartee' 18he1 c�esfo `Beattie North est SC u Niles Co7porat0rkolrpkn i
ldeY,dare of lJavemO
Its Principal office In,Seafte Woshinplon Or Ifs successor,and 1
the uuhtanding . W6* . dnd, Sewer Seth person' bnd^wlt% such bdTl �nahihf? heese1addttloA
,vv�,va ,.V�vviucu w, uY u ..- ..._
slnk�ng fund, on the 1977Vf3onds, the 119813111311,11 onds the 1988 Bonds, Bonds a flied amount, without regard to any. fixed propiortlon,
the• 1992 Bondi the.Bonds and any Future ParWy Bonds ocfuolly namely:
paid from the-Jievenue ot the S and notfrom OLID Assess. fa) Into the Printipot and Interest Account, at least 20 days
menu offer payment of Operating and Maintenance Expenses. Pr Or to each principal payment tlate and each Interest
FufuYe .Pansy Bonds" meorhs oil revenue bonds of the City payment date, on amount sufficient, together with On9.,)JLtD
is the tlate of the Issuance of file Bonds and having a Assessment collections deposited therein In coVnnection;wtiti
Iplen'upon the. Revenue ot the System 'for the payment of the amount maturrirng on each rtw�rity date of Nie 1 77 Bonds, e
revers alithe the paymOnd l erHr oftthe thereon
ncipaulaof al to nfd Interee lien st on the n such 1983 Bonds the 1988 Bonds, the 1992 Bonds, the Sonds'and any
1977 Bonds, the 1983 Bonds, the 1988 Bonds, the 1992 Bonds and Future Par Bonds hereaker Issued and outstanding and an
the Bonds. amount dent to pay the Interest payable on the
Government' Obligations". means direct obligations of *or Bonds; the 1983 Bonds, the 1988 Bonds; the 1992 Bonds, the
obligations the prfncipal of and Jnterest on which are uncondttion- �s and those Future Parity Bonds on such Interest payment
i
all guorarMeed by,the.United States of America. and
Operating•and Maintenance Expenses" means oil reasonable Q Into the Reserve Account from money legallyavoifable to
I expenses incurred by file City In causing, the System to' -be be used therefor such amount so that on and offer. the date of
aszeftffbd'ana`maintolired•in, a -repots--working order and :__delivery,of.fhe-Bonds to the Ptlrchaser-thereof and payment
condition but shall not Include any depreclatfon or taxes or tiierefdP ihere3halTbe on deposit In socia Reserve Acaoant a
charges (n lieu s taxes levied or Imposed re the City. total reserve at least equal to the average annual debt service
"Plan of Additions" •meansd o system or plan of additions and requirement both principal and Interest of the 1977 Bonds,
Improvements to thhe'System' spectfiedthe
excluding the p
, adopted and ordered to the 1983 B 6 the 1988 Bonds the 1992 Bondsrincipal of any `Term Bonds If the e p the Bonds,
be carried out by Section 2 of this ordinance. - aymen•for
"Principal and Interest Account" means the account of that such Term Bonds Is being provided for by a sinking fund.
rmme'created In the Bond Fund for the payment.of the principal The Reserve Account shall be maintained at that total average
of and Interest on the 1977 Bonds the 1983 Bonds the 1988 Bonds, annual debt service required reserve amount, except for
the 1992 Bonds the Bonds and all Future Parity fonds of the CMv withdrawals therefrom os authorized herein, at all times so l
hat
payable' out of tfund, as any of the 1977 Bonds, the 1983 Bonds, the 1988 Bonds ong the
Refunding Plan" means: 1992 Bonds the Bonds and any Future Parity Bonds are oufsEond-
• (o).ihe plocemen•of sufficient proceeds of the Bonds which, Ing- except,that the amount In the Reserve Account maybe
w other money of the City, will acquire the Acquired Obllga• reduced b any flee q on amount not less than the average
flons to be deposited with cash wlth the Refunding Trustee; annual debt service requirements for the and Bonds, the ture
(b) the payment of the Interest on the 1988 Refunded Bonds, Bands, the 1988 Bonds, the ng. Bonds the Bonds and any Future
when due up to and including December 1, 1998, and, on Panty Bonds then outstanding. When the total amount In the Bond
Fund shall equal the total amount,of'principol and Interest for all
December -11988 the call, payment and redemption of all of outstanding bonds payable out of the Bond Fund to the last
(c) the
payment
1f t Refunded Bonds at par and maturity thereof, no further payment need be made Into the Bond
(c)the payunding the costs of Issuing the fonds and carrying, Fund.
out -the Refunding Plan. In the even that there shall be a deficiency in the Principal and
Refunding Trust Agreement" means that contract between Interest Account In the Bond Fund to meet maturing installments
the CMN and the Refunding Trustee providing for carrying out the of either principal or Interest, as the case may be, that. deficiency
Refunding Plan. shall be mode up from the Reserve Account by the withdrawal of
Refunding Trustee" means. Puget Sound Notional Bonk of cash therefrom for that purpose. Any deficiency created in the
Tacoma, Washington. Reserve Account by reason of any such wtHidrawal shall then. be
Reserve Account means the account of that name created In mode u from the Revenue of the System and/or ULID Assess-
the Bond Fund for the purpose 19 seconds, the 1"3 Bonds,
s, the mem if any, payable Into the Bond Fund first available after
princlppool.of and Interest on the 1977 Bonds, the 1983 Bonds, the making necessary provlslon for
required payments Into the
on -of th -the 1992 Bonds; the Bonds and all Future Party Principal and Interest Account. The money In the Reserve
Bonds -of the Cly payable out of that fund. Account shalt otherwise be. held Intact and rtwy. br ;a'.plled
Revenue of the System" means all the earnings and revenue ,,,,,,,.,.. «,...,,... _,....__.,__ __ . __._ _ _ __
me IrnernOl Kevenue COOe or 1986, as amended. 1°vestment W On Such basic OCCOUnt Shall be depOSi1; `jn,aOd
System" *means the combined water supply and distribution become a port of the Bond Fund.
system and sanitary sewage disposal system of the City as the In the (udppmen of the City Council; the Revenue of the System
some
may be added to Improved and extended for as " as anticipated f0 be derived from the operation and maintenance of
any of the 1977 Bonds, 4he 1983 Bonds, the 1988 Bonds, the 1992, the System -will be more than sufficient to pay the Operating and
Bonds, the Bonds and any, Future Party Bonds ore outstanding. Maintenance Expenses and to permit the selling aside IntoJhe
Term Bond Maturity •Year" means any maturity year In 'Bond Fund out of the Revenue of the. System of sufficient
which the outstanding principal amount of revenue bonds amounts to pay the Interest on the 1977 Bonds, the 1983 Solids
Payable out of the Bond Fund scheduled to mature (r diets of the 1988 Bonds, the 1992 Bonds and the Bonds when due'ond ta
any reservation of rights of.redemption prior to maturity) is more �y and redeem all of the 1977 Bonds, the 1983 Bonds, the) 1988
than 1.25 times the average annual principal maturity of the .Bonds the 1992 Bonds and the Bonds at maturity or earlier
bonds payable out of that fund for. the three years Immediately mandatory redemption date.
preceding the Term Bond Maturity Year. The City Council further declares that In fixing the amounts O
Term Bonds" means Bonds maturing In 2013 and the be paid Into the Bond Fund It has considered and had due regard
ouManding bonds ovable out of the Bond Fund. Maturing In any for Operating and Maintenance Expenses (and the cost of opera-
tion and maintenance as used in RCW 35.92) and has not set aside
ULID" means utility local Improvement district. Into the Bond Fund a greater. amount or proportion of the
"ULID �Assessmenfs" means the assessments levied In such Revenue of the System that In Its Judgment will be available'over
ULID of the City which may hereafter be created pursuant to and above Operating and Maintenance Expenses (and such cost
state low and shall include installments thereof and Interest and of Operation and maintenance), and that no portion of the
any penalties thereon. Revenue of the System has been previously pledged for, any
Section 2. Plan or Svsfern.Adopted. The City specifies, adopts other outstanding Indebtedness except for payment of the 1977
or system for the consfruc- Bonds 1983 Bonds 1992 Bonds and 1988 Bonds.
NOn-of-IMprovements-of-the-System,.consisfln0:o�h e,consiruc-, ,,,�AonII.Lien-l?osNion.of.BondS.AlL Revenue of the System Is
Ion of a portion of a public works -facility, that portlonof whi- 1: PI be made Into the Bond Fund
•o be used by the System, at on estimated cost of $2p55000 for and the Bonds shall consiltute a charge and Iden upon' Tia{
tie -portion to be used by the System, which cost shall be paid Revenue prior and superior to all other charges and liens
Yom part of the proceeds of the bonds authorized herein, and whatsoever, .excluding Operating and Maintenance Expenses,
.xponslon of.the capacity of the City at the Lynnwood sewerage except that the charge and lien upon that Revenue for the Bonds
'oclittles pursuant to the "Amendment to Agreement for Jolnt Use
s u"H...-., ce..,......e c...•u,«sem we,..,.,,.... -u..... __... �.. shall be on a parity with the charge and Iden upon That Revenue
a total cost at 53,505,000.
'egoing all necessary appurte-
may be Incidental and neces.
and Installation.
rtv both real and personal or
-1"-of-wov, easements and
uch plan.
changes In the details of such
• - •• -
tppliance with Parl Provisions. In accordance
m x:nraw
are sublet
Prior to
RS�T171'711ftdP No. 1957, and
Artane No. 2363, the City Council finds and
C reser
obligations
tons") for
ie of Issuance of.the Bonds, there will be no
created th,
e Bond Fund or the Reserve Account therein;
of Foster f
Is created in connection with the Issuance of
est on the
Is made herein for the payment Of the prfncl-
federal Inc
the Code,.
est omthe Bonds out of the Bond Fund;
Is mode' herein for the
payment •o
deposit from proceeds
the regular'odditlonal amount In the Reserve
Plan as so
public acct
Bond Fund for the Bonds; and
After the
D of Issuance of the Bonds, there will be on file
Ing Truster
a certificate from an Independent licensed
or Governs
;Ineer experienced_ In the design, construction
money or
as,
so
of the
to carry
the amok
Continued on to page ID
FUNNIEST EDDIE
.,
rme Coverage Requirement. ,
>escrl on of Bonds: For the puTose'of i
n rip out the Ion )f. 4�m
of co Ing out the Refunding Plan and ,
the
,.eof !Bonds ("costs of issuonte")
" Bonds In - the principal omourit�bI
on
expeni
October. 1, 1992; shall be In the
fied'rted
confin
any Integral multiple thereof within a
wbstll
imbered separately In the manner and
monel
nation as the Bond Registrar (collet-
out tM
of the State of Washington• located, In
Shefeli
sew York, New..York) deems necessary
nation
on; and shall bear Interest at the rates.
the dii
d on the balls of a 360 day Year of
under
1
payable on °December .1; 1992, ,and
each succeedln9:lune 1 and Decem•
cable
Refurx
r Oecemberl In years and omountsas,
Incom
• r,
ourch<
Amounts' -Interest Rates
coble
• 3160
130,000
transit
tions r
..
trust e
130,000 X4:10
Sy�sbt�er�
185,000 A.40 -
..-'210,000. - •ra.70-.
225,000 , r _ ^4.90 -
.725,000 .5.00 --
a uthof
substti
4
' 9200 5.20
5,0
mode
substh
S
5 55
1805,000 : :
, wbstH
135,000. t S:7A .
Ing Tr
140 0
rf6:00�
Invest,
-`145,0
Ordlnt
130,000 :6.05:
applic,
130,000 „6.15 ,
..Trust
• -205000 6.20
:and e
1,295,0p0p0." - 6.25
r
re
forth the. maturity ears and principal,
ed to carry out the Refunding Plan:
.>elatL4
. , ,t
Amounts
prinfln
Fees 1
polrl0
' 25,000 , ,.,,; 1
(y J
cam.
25,000 cy .G;,
�I_execrr
25000
Mayor
=;
�I
' 30000
ndb1
;•
660,000
oblige
: -705,000 }.
fonne
ootsie
' 745,000 fir, Y
nd Transfer of Bonds. The Bonds shglrxpen
the p
Toborrl Ipal and Interest
"lo tc
•ecord5 maintained by. the Bond Re
. The Bond Register shall cotNOin-• e.
-�I,
• of 'the owner of eachBond and the
w why
Irire
Der of each of the Bonds held by lath
in
he e,
date on m
less.
The �?
the float
and In th
effectthe
I Mandatory Redemption and Opren nI
m r ng e1�73T991 sit
M be Issued without the right or option
e Bonds prior to their stated maturity us
'�- i ftIgM. and option to redeem the Bonds Bo
:ember, 1,-^2003 prior to their stated Fu
December 1 2002, as a whole at any mit
rest payment date wtthin one or more of
-City (and. by'lot wtthin a maturity`IA rel
eglstrar sholl-determine), at,Par,Plds Fu
t tlxed'for redemption. �, 4u kit .
1re Term;Bonds.and ,if Pot redeOUled,',
ptibn; provisions:,sei„ forfh,,-obOyo,-4Rni ,
-
s^ G_rond—UnderSkge(R) 1:504:207•ns�^^ ' '
` } a) K° establish, Toe rr»IrTeitdin�a d
8C.....T^'. �, water f inttarY sews
d that the Ctty obtaln.trtchrors-tor 1983 Bonds,
.e...,.:.,.ew n.... ,.:.•� Q r.�. 1977 BDnds,' outs..
bnYo,..w., AandS'. are
will not cause the Interest on the Bonds W ULID Assessmems 31—-—-
{0 be.included' In,gross Income -for fed ,�tat Issu! by the original fatal pvolyrinC (
les and that such dlspostf on and substlfufIon lT0 simplltV -wherel LiDs are Involves
ipllonce with the statutes and regulations ap filet pocfloh of any Future Panty BO
s. Any, surplus .money resulting from, the LID Assessments must be subject to
oosltlon or redemption of the Acquired Obl -
ahtutons•therefor shall be released from (b)'(} will atoll times mac��� a
onsferred.to the City to be used for any I epalr woritIng order and:
a4ettie System and the business it
on of Refunding Plan. The RefundingTrustee n efficient manner aftd at a reasonobi
ui
e Acqred O►gations (c) it; will not sell, lease, m0rtge
xis and make the pdymefvts'reeqquired to encumber or dispose of all the proper
indl))ng Plots from -the Acquired Obllgations (%Ovlslon Is made for Payment Into t
to Is ordnl eye. ADAlte d whet the
(� Sufficient ro pay the Prtrtclpal of on
r In C
-dep poyable.00 of the Bond Fund Of any it
y Income therand the efrom shall be held Irrre vocobl,dispose f any par
to the Dation tt
I 4rWIlIof any Dorf of the property Of
useful and
pl ed In accordance -with the provisions
8, this theordinance Cha 39.53 RCW and othimade.for -reploCement thereof Or'for
All necessoervf and proper. fees ctompensatidFu lessf than OnamdurR whit nOunt of Revenue
b
the Refunding Trustee for the Bonds and � R autstaadln eb bonds
POYOble
ntd to•estobllshiny the escrow to accompli debt see
the outsfanding Refunded Bonds and c band for the twelve months pre(
orae and'delivery of the gohds,'Includinf encumbrance or•disposal•from the PW
trvice fees, Insurance pprremlu' verif c encumbered or dled of be
H's fees and other reloted•expenses, shall le for debt Ay lor=e bond
y so
xeeds of.the Bonds. r. for the same per
i for Refund) Trust A reement. in order shall be. used to.retire.those ouhtarl
Imam '10 dlnonce, tl+ripossibte dale• tfie'BOnds remoll
nonan Dlrecier is authurtied and. directed to rA1 While any Of _ ,.,•w .
such
t bonds may, be caltea at a premium Or J% Or
officials are authorized and directed to cause
to give such notices as required at the times
required, by Ordinance No. 2678 In order to
on prior to their mahirtty of** 1988 Refunded
costs of corryl;? oul.the Plori of Addtflom aro - all or
,once and sale of the new money portion of-" msurc
on deposit -in the Construchon � and Acquisition e, odegc
vested and the Investment earnings retained In or re,
, and Acquisition Fund and used for the purposes or off
rcept.that earnings subject to -a federal,tax•'or "bond!
nent moy'be'.wWWrown,from the Construction if avc
for those tax-ar�,rebate purposes, - 4o)_
versants The 131ty covenants and agrees with the os —r
.4 �1 _'.It'' 4
�as follows: the Isst
tecf such rates an merefr
disposal .servile sal
98 Bonds!•1992 Bonds prompt
I which, {ogether with . •mborld I
steijol�y� (excludln9 ULID, - • being
rVg ar Dunt of�debt
cludi
bc•deducted from the i 92 8
be Id ext Year On'
19��M
debt service for elp9c
oriel88. tO1A Pu
s, 1983 Bonds,
Bonds e(, to the
rlyInol fatal amount of .- .Cm, fi
ed -to the gond Fund In
amount of the► Issue, i ludr
only.t. debt service Ctiy.a
d Issue riot covered bY', crZA
the Coverage Require-
tep the Sy'sterilIingood frI Mamie
,d also will at.011 rimes tonne
connection therewith In m
cost.:. aBern
It, or Inany manner. of am
y of the'tYstem unless_ to'Pn
e Bond Fund of'o sum
I in West. On all bonds .• •I?
ter
ne outstondin9, and that• r
IV manner • encumber or.
the System that Is used,
treat unless provision Is
be
payment Into the Bdnd'
•ecelved which shalt not S
out of the Bond Fund °S '
2
to for Suth.outstonsome ratio to dle ,Rest
ding such sale, lease
rtion of the. SYstbm sod; - F�iitu
ars to the Revenue.avall-
trom the entire SVsterrf ' (3;
gpoold Into the Band Fund i R v -v'",
Ing bands.,gf the earliest_ .� Fun
outstandirlp M will keep• (4
,cords In whhich complete , our,
lot fronsoctions relating. rev,
ny subsequent owner .or,
I1.be awned by other thd�p,sar
rti;* -athe water ono sevrc. s nen
tin the terms and conditions o this skncl
120 days alter the close of that cOlen- ora t
or owners of at least 25%._
the rig
ht Kat oil reasonable times' /o oI ro
and all records occourrts r o da y of
Uppn request 0•1 any own of the�mostt: valid,
Msh to that owner o cop.. this a
of the Ctty's ocoounts�ythe State
such other audit os Is atrthorized by We
water: or 'sonitary -stooge �s�j Bol
whgis0ever-free of;carge .
n.to.enforce:c0ilecilen.of0, delinquent•
es of insurdrice On tts SystewmatproPere `
gmeodll�'carried,'by n�of Water and The
n• the
I lieu thereof; after the-.retirementonds%3 duly
,e ouistanding .1977. Bonds pay merit tt>a t
ole provision is made for the 1
,noy sent-hisure•or parfitlpp}e avid int : as
once Pool or similar Pian prp �cate
,is normally cued by sU shett-Insur
he cost of that thos
J a part of Operahny and Maintenance
Or .bind
'hen the_ United Shotes of. bind
oil provide for War Risk Insurance, the offic
ike Dui and maintain -such insurance On
the system bel-Which.,such War Risk ver'sign
len In exert thatunt �e� ents tlre�ment So
,treat, .and 1983 Bonds
utstanding 1"»'B0^ ment of those ' S
vision Is mode for the Rolcall
e out and molntotn such insurance only boo
.*ptable to the CifY• and all i
Maintenance Ezpdnsps
'�:, nf°nt he City as herein setlh. out
i <
r In connection wtih. Bonds trcnsferred or exchanged ln' accordance witty the provl- Foster. Pepper' '
K UUD Assessments. sloras of the Bonds and this,ordinance, •t0 wive..os C11s c onset on,. [egg -t
id Fund e:City Will ppoovylnd agent for the Bonds ahkf to � out all of the Bond Regis �ouri`cor clerntnot
herein. ch Assess* hat's powers dnd`dutles'undePHis ad nonce and City OrdiilgncemeM offering
f and' Interest on any No. 2451.,establlshing a system:of,reglsfration for He CIN s3. 9mconnecfion with 1
A those Assessments and obligations sirAe.w, I.
ieM of principal and, The Bond,Reglstrar shall�e responsible for Its reproseMotigns oCie., Staten
Future Parity Bonds, coMOlned In the Bond R�Isfror's Certificate of Autherrflcotioil pn .The oPc l stole 1,
the 1988 Bonds, the He.Bonds The Bond Ref sfrOr may become the. owner. of Bonds fidrY.
the th d, Th.rfo Bond
ReglstIt d have H�ti were not the f3ond'Regls• nary ' - al Staten
edeM Interest on the fear. and;. to the extent permitted by law,
may act as deposttorY 'Bonds and for fl
++ rs or dir
act norramakor for and Perm of 0=0other capacftY withOf its erespect t any formed CItY deenitisefino��ld
date, except for the
or other -funds of the 10 prtherightsof Bond owners. �egoAl IMefesf. rates sellh
ori time durl the Section'18: Bonds N actable: The RB-ds62A.8-102-and 62A8 Principal am rN. t
xl.coui of 5 a ea•
on each. Bon.
end shall express no
curacy of any officlal-
iaterialissued'or used
owl's opinion shall so
ist on the Bonds % be in bV dates, ratings and-
me,tax purposes. The 105. .. ... '. prompt
wlllcon The•ProPer-Citi ottldals ore authorized and directed to.do
Ftroge rebate require-; section •19. ProvlsionLrr Future Par Bonds. The Ctiy
matters-•;.'; .:.
the
the internal Revenue re snTM o Ilcatlonand,use.offhe.Proceeds,
.are. applicable to the •hrte a charge h014 ere ien- upon the uP aged to be ue Into the Bond FuFu d.on purchoserr aning d or thhe proper PP delivery of the Bonds .
-to comply (onto tie • Assessme ,� «.. be gang the 1988 .Bonds, she' Ot the sale Hereof.
22 Tem Bond Pending He.PriMing, execution.
es ttxi� fisc City has elected to pay as on of Oralnc
x1 rebcAable orbtiraoe; and Hepp YrneM 2363, sic
I
aired under Section 248 of the Code of Hose
the Bonds from being inciuded In gross fier�ln
me tax purposes
t it hhaass not been notified Of any Ilstl or Clfy Ica
SSft
Internal Revenue Service to the eted Revenue
whose arbtfi tertificatlons maynot pay and
out.and'distribute..the Revenue of the 'suuch�
neV deposited in bond redemption funds, .. �e tt
If' . PriO11}y•
and Mainten6nce Expense. bonds. I,
mired debt service ments, Including He CMy
mulotfoi the Bond und, on the 1977 bonds .o
s, He- 1988 Bonds,•"the Bonds .and any a olloSecbt
sreafter Issued:
quired dew .service on any water- the IsgU
Issued having a' char of and Ikn
frn Iunior to the 1977 Bonds, He 1983 source,
Is, `1992 Bonds, He Bonds and any Portion
same b,
i retire by, optional redemption Or to''then -ou
iwrket any outstanding water and sewer defense
loations a the Ctiy� to make necessary ,to„ ;act
cements of or redblrt; odd"Jons'orlexten•'• Govern
for ony-otherlawful•purposer ' known I
�EXecutiorl of Bandsri he,80nds'5hbll be: pdynfer
�} 'in,0 form',conslsteM; schedul
,His ordlnance and'state' low; strall:bq IrrevOc
ind:CitY Clerk; elther'of both of whose `that:ta
'sal
or in facsimile and He seal Of the City,
defeca
fan Hereof shall 6e Impressed or'Prirtfed -oo the F
p_Gertlficate-d"hliutheMlcatlon'iri the, Ing UL
y sbned by the Bond Registrar;,shall ;be,.Bonds
-
EnY Purpose Or enjMled t0 He beneflts.of phpnanv
Athe
TE OF AUTHENTICATION-~ ,.�.,..,- Ino -one
f the fully feglstered City of Edmonds, ony:.m
,Sewer Revenue and , Refunding _, payme
tl 1r+He Bond Ordinance: „Y, ° „7 Purpos
GTON STATE•FISCAL AGEI•JsCY`,_ ownef'
etilshor t. 'tiein2l�?
kuthor z cer • , cosh a
GO'r o f:ertlflcafe,of�AutheMkaflon shall be •.G6veri
at the.Bonds so, outhr;Micoted hove beer), reoem
�Caled 'and delivered ,and .are entitled rfo ,sante'
. , defeas
facslmlle signature- OpPeOrs On He Bonds' not so
bf H+e.City authorized to sign bonds before co
mpu
..*facsimile signature are outhent' thM
Bond Registrar, or issued by He City"' �with it
may be be outhenticoted,.dellvered and" sfSfw
�ated, Issued;and dellvered, shall be as
h: that person hod coMlnued-fO_be.on
zed,to sloe bonds, Any Bond also MCI co &c
Cttwby ony person who, on He bcival rcr�
Is on officer of theCtiY'aufhortzed fo'. Mrc
'on she did not hold the rMulred,office 0. ,by'ihI
therBonds.
lsh a: the Bond R . isfrdr..shcll,keerp '6r 'Bond;
Ond,lrcnsfer Me oieuBondasmwUhiE�hissth�al1 oMt� .fore a
spectiorKby H CMY::The �d defer..'
C Of theC1tY,
1 �
,ns set forth In Sectioo16, "Seaton f' defin ve Bonds He CIN may
t= 3 af.Ordlnonte' NO, a
the Hme
of the issuance, wuse::lo'be executed (Ind delivered 10 He Purc user a single'
ectlons are Incorporated. temporoi Bond In it tocol princlpai amou of the Bonds. The
e• teriporrorY .gond shall bear He some date of Issuance Interest -
In par o . IunlshOar11,.1i n+ee veft pn the d rates
Bonds,�m be Ient ssued as a fuls and ly and
?fired Bond In the
He payrh'We o?nULID name of-thd purchaser, and otherwlse,snall be In o form accept-
� •a• oPOYM t ae2AQd aa• able to -the purchaser. The hrnPabrY Bond shall be exchanged
Inti" of and Interest On fon-definMlve;Bonds as, soon as they. are. printed, executed and
h LILID.AssessmeMS,Gre ovalloblefbr.dffectiv
of Improvements . Ong section 23. Etteiflve Date. This ordinancelvei ; bel n0 not subled To
rbie legislative body, Is
sale of such•lunlo►,'llen 'o
In'Hls ordinance prei)errl to erendum;'and shall take a ect•five days after its Passage and
refund maturing. revenue publication. ' the
h Is not ottxrnvJse . ,P � Qpb�uI'it�Council
k mentetirig CHere folW Edmonds fiEWashing-
money
In He event thj.dlt %sh611'• He�Mayor tis -0th day at ewOF-E6199NDS,: WASHINGTOHu'
it to the laws Of the. state - . +; -By LAURA M. HALL, Mayor' . .. .
)le from anyy. other.':kmful: :. Bond Counsel .
rest on the Bonds,orsuch ATLES7:.RHONDA J. MARCH CIty.Clerk.
PAS
TY
UENRCK:
or defeasance plan 6s the. FIOLRED WITH07Hf GLTEY LMeMber 8, 1992.'
refuhd.or'deteose all•such
tie costs-of'•refundl or EFFECDTNE DATE1'DeCeOmber 9,,1"ember 8; 1992.
set aside for and Pledged _ .
'easonce, • money and/Or P�ubDllsf edpeNceriiber414,,1992.
i amount, together -with .
,eM Hereof, to make such
unding or,defeosance os<
. account') and shall make
on of Hose Bonds, then led the
In
ti...r ,errw cel