Ordinance 3224CITY OF EDMONDS, WASHINGTON
ORDINANCE NO. 1224'
AN ORDINANCE of the City of Edmonds, Washington, relating to contracting
indebtedness; approving and authorizing the refinancing of a fire truck acquired
under a lease with option to purchase agreement; approving and authorizing the
acquisition of a ladder fire truck pursuant to a lease with option to purchase
agreement; and appointing an escrow agent and authorizing the execution and
delivery of an escrow agreement.
WHEREAS, the City of Edmonds, Washington (the "City'), acquired a new fire truck (the
"1997 Equipment ") under a Lease with Option to Purchase Agreement dated as of July 30, 1997
(the "Agreement ") between the City and First Municipal Leasing Corporation (the "Lessor "); and
WHEREAS, the Lessor has offered to permit the City to refinance the 1997 Equipment in
order to reduce the interest rate and amend the payment schedule; and
WHEREAS, the City is in need of a new ladder fire truck (the "1998 Equipment "), the total
cost of which (include sales tax' and fees) is $684,028; and
WHEREAS, the City does not have available sufficient funds to pay the cost of acquiring
the 1998 Equipment ($684,028); and
WHEREAS, the Lessor has offered to acquire the 1998 Equipment and lease the 1998
Equipment to the District pursuant to the Agreement; and
WHEREAS, pending delivery of and final payment for the 1998 Equipment, an amount
which, together with interest thereon, will be sufficient to pay the purchase price of the Equipment
will be deposited in escrow with The Fifth Third Bank, Cincinnati, Ohio (the "Escrow Agent ")
pursuant to an Escrow Agreement (the "Escrow Agreement") among the Escrow Agent, the Lessor
and the City substantially in the form on file with the Director of Administrative Services; NOW,
THEREFORE,
THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, DO ORDAIN as
follows:
Section 1. Debt Capacity. The assessed valuation of the taxable property within the
City as ascertained by the last preceding assessment for City purposes for the calendar year 1998
is $2,668,908,479, and the City has outstanding general indebtedness evidenced by limited tax
general obligation bonds and leases in the principal amount of $8,571,000 incurred within the
limit of up to 1 -1/2% of the value of the taxable property within the City permitted for general
municipal purposes without a vote of the qualified voters therein, unlimited tax general
obligation bonds in the principal amount of $9,375,000 incurred within the limit of up to 2 -1/2%
of the value of the taxable property within the City for capital purposes only, issued pursuant to a
vote of the qualified voters of the City, and the amount of indebtedness for which bonds are
authorized herein to be issued is $1,274,028.
Section 2. Authorization of Schedules to Agreement and Escrow Agreement. The
City Council deems it to be in the best interest of the City to refinance the 1997 Equipment on
the terms set forth in the Agreement, as supplemented by Equipment Schedule No. 003 (the
"1997 Equipment Schedule "), and to finance the acquisition of the Equipment for the purchase
price of $684,028 (including sales tax and fees) on the terms and conditions set forth in the
Agreement, as supplemented by Equipment Schedule No. 002 (the "1998 Equipment Schedule ").
The principal amount payable to Lessor under the 1997 Equipment Schedule shall not exceed
$590,000, shall bear interest at a rate of not to exceed 4.910% per annum, and shall be payable in
six installments of principal and interest, commencing April 30, 1999, and annually thereafter on
each April 30. The principal amount payable to Lessor under the 1998 Equipment Schedule
shall not exceed $684,028, shall bear interest at a rate of not to exceed 4.910% per annum, and
shall be payable in six installments of principal and interest, commencing December 30, 1999,
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50045401.01
and annually thereafter on each June 30, commencing June 30, 2000. The City Council approves
the appointment of The Fifth Third Bank as the Escrow Agent. The City Council further
approves the 1997 Equipment Schedule, the 1998 Equipment Schedule and the Escrow
Agreement, with such changes as the Director of Administrative Services and Bond Counsel to
the City shall deem necessary and appropriate, and authorizes and directs the Director of
Administrative Services to execute and deliver the 1997 Equipment Schedule, the 1998
Equipment Schedule and the and the Escrow Agreement, together with all other closing
documents as are reasonable and necessary to carry out the purpose of this ordinance.
Section 3. Preservation of Tax Exemption for Interest on the Agreement. The City
covenants that it will take all actions necessary to prevent amounts treated for federal income tax
purposes as interest paid under the Agreement 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 the
Equipment or funds of the City treated as proceeds of the Agreement at any time during the term
of the Agreement that would cause amounts treated for federal income tax purposes as interest
on the 1998 Equipment Schedule to be 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 an issuer of obligations whose arbitrage certifications may
not be relied upon.
Section 4. Small Issuer Exception and Designation as "Qualified Tax- Exempt
Obli ag tion." The City finds and declares that (a) it is a duly organized and existing
governmental unit of the State of Washington and has general taxing power; (b) the Agreement
is not a "private activity bond" within the meaning of Section 141 of the United States Internal
Revenue Code of 1986, as amended (the "Code "); (c) at least 95% of the net proceeds of the
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50045401.01
Agreement will be used for local governmental activities of the City (or of a governmental unit
the jurisdiction of which is entirely within the jurisdiction of the City); (d) the aggregate face
amount of all tax- exempt obligations (other than private activity bonds and other obligations not
required to be included in such calculation) issued by the City and all entities subordinate to the
City (including any entity which the City controls, which derives its authority to issue
tax- exempt obligations from the City or which issues tax- exempt obligations on behalf of the
City) during the calendar year in which the 1997 Equipment Schedule and the 1998 Equipment
Schedule are executed is not reasonably expected to exceed $5,000,000; and (e) the amount of
tax- exempt obligations, including the 1998 Equipment Schedule, designated by the City as
"qualified tax- exempt obligations" for the purposes of Section 265(b)(3) of the Code during the
calendar year in which the 1998 Equipment Schedule is executed does not exceed $10,000,000.
The City therefore certifies that the obligations evidenced by the 1997 Equipment Schedule and
the 1998 Equipment Schedule are eligible for the arbitrage rebate exception under
Section 148(f)(4)(D) of the Code and designates the 1997 Equipment Schedule and the 1998
Equipment Schedule as "qualified tax - exempt obligations" for the purposes of Section 265(b)(3)
of the Code.
Section 5. Effective Date of Ordinance. This ordinance shall take effect and be in
force from and after its passage and five days following its publication as required by law. Any
actions taken consistent with the authority and prior to the effective date of this ordinance are
ratified, approved and confirmed.
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50045401.01
PASSED by the City Council and APPROVED by the Mayor of the City of Edmonds,
Washington, at a regular open public meeting thereof, this 6th day of October, 1998.
ATTEST:
City Clerk
APPROVED AS TO FORM:
FOSTER PEPPER & SHEFELMAN PLLC,
Bond Counsel
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Mayor
Filed with the City Clerk: 10/02/98
Passed by the City Council: 10/06/98
Published: 10/11/98
Effective Date: 10/16/98
Ordinance No. 3224
INI
50045401.01
SUMMARY OF ORDINANCE NO. 3224
of the City of Edmonds, Washington
On the 6th day of October, 1998, the City Council of the City of Edmonds, passed
Ordinance No. 3224. A summary of the content of said ordinance, consisting of the
title, provides as follows:
AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON, RELATING TO
CONTRACTING INDEBTEDNESS; APPROVING AND AUTHORIZING THE
REFINANCING OF A FIRE TRUCK ACQUIRED UNDER A LEASE WITH OPTION TO
PURCHASE AGREEMENT; APPROVING AND AUTHORIZING THE ACQUISITION
OF A LADDER FIRE TRUCK PURSUANT TO A LEASE WITH OPTION TO
PURCHASE AGREEMENT; AND APPOINTING AN ESCROW AGENT AND
AUTHORIZING THE EXECUTION AND DELIVERY OF AN ESCROW AGREEMENT.
The full text of this Ordinance will be mailed upon request.
DATED this 7th day of October, 1998.
"ve. zz'.'
CITY CLERK, SANDRA S. CHASE
STATE OF WASHINGTON, 1
COUNTY OF SNOHONISH, )r
SUMMARY OF
ORDINANCE NO. 3224
of the City of 1
Edmonds, Washington
On the 8th day of October,'
1998, the City Council of the City'
Jof Edmonds, passed Ordinance''
No. 3224. A summary of thel
content of said ordinance, con-
sisting of the title, provides asi
follows:
AN ORDINANCE OF THE CITY
OF EDMONDS, WASHINGTON,
RELATING TO CONTRACTING
INDEBTEDNESS; APPROVING
AND AUTHORIZING THE REFI-.
NANCING OF A FIRE TRUCK;
ACQUIRED UNDER A LEASE
WITH OPTION TO PURCHASE
AGREEMENT; APPROVING
AND AUTHORIZING THE AC-
QUISITION OF A LADDER FIRE
TRUCK PURSUANT TO k,
LEASE WITH OPTION TO PUR -�
CHASE AGREEMENT; ANDr
APPOINTING AN ESCROW
AGENT AND AUTHORIZING 9
iTHE EXECUTION AND DEUV-
ERY OF AN ESCROW'
AGREEMENT.
The full te)d of this Ordinance'
will be mailed upon request.
DATED this 7th day of Octo- I
ber, 1998.
CITY CLERK,
SANDRA S. CHASE
Published: October 11, 1998.
B -2 -1
Ss.
Affidavit of Publication
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 ......... ...............................
Sturwry of Ordinance No. 3224
..... ............................... ................
...................... ............................... ... .................. ......................................................... ---
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:
October 11, 1998
......................................... ....................... ,.......................... ...............................
..... ...............................
ad h said news?aper wa Yegularly distriiuted to its subscribers
all of said
f...:... .......--- ...... u...........� -, ......... Principal Cl. erk --- ............-- ...........
pa
Subscribed and sworn to before me this........ 14h
day ....... 09.o ...T - - -- ..., 19.9.8—
.... ............................... .
........................ ......... ............. -- -- -- - - - -.... ...................---
otary ub11c in and for the to of ashin ton,
residing at Everett, Snohomis Count .
ustu.
:� 0 `SSION
NOTARY �9y;
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