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BID FORM
<br /> SALE OF INTERESTS IN LEASE PAYMENTS BY
<br /> THE CITY OF EVERETT, WASHINGTON, AS LESSEE,
<br /> UNDER A LEASE (WITH OPTION TO PURCHASE)
<br /> FOR FIRE STATION #4
<br /> (CERTIFICATES OF PARTICIPATION, 1991 SERIES C)
<br /> $1,500,000
<br /> William Cushman
<br /> Finance Director
<br /> City of Everett
<br /> Everett,Washington
<br /> Dear Sir:
<br /> For all right, title and interest in payments of the City of Everett ("the City") pursuant to a
<br /> lease (the "Lease") entered into by and between the City and Lumpkin, Inc. (the "Contractor")
<br /> pursuant to a construction contract between Contractor and City for construction of Fire Station #4
<br /> ("Improvements") and related ground lease (the "Ground Lease"), we will pay $1,500,000 in order to
<br /> issue certificates of participation ("Certificates") evidencing undivided proportionate interests in
<br /> payments ("Lease Payments")made by the City under the Lease.
<br /> The total principal component of the Lease Payments shall be $1,500,000. Principal
<br /> components shall be due annually on October 1 according to a schedule to be prepared by the City.
<br /> Interest components shall accrue from October 1, 1991, payable on April 1, 1992, and semiannually
<br /> thereafter on each April 1 and October 1 until expiration of the Lease on October 1, 2006. Payments
<br /> due under the Lease may be prepaid on any Lease Payment Date on and after October 1, 2001, at
<br /> the price of the outstanding principal balance of Lease Payments plus any accrued interest to the
<br /> date of prepayment.
<br /> Pursuant to a trust agreement that we will enter into with Security Pacific Bank
<br /> Washington, N.A., as trustee ("Trustee"), all right, title and interest in the Ground Lease, Lease and
<br /> Improvements will be assigned by Contractor to the Trustee, and the Trustee will execute and
<br /> deliver the Certificates to us or our designees. The principal component of the Lease Payments will
<br /> constitute the principal amount of the Certificates. The interest component of the Lease Payments
<br /> will constitute the interest payable with respect to the Certificates. The payment dates, maturity
<br /> schedule, interest rates, and other terms of the Certificates will be consistent with the provisions of
<br /> the Lease. Pursuant to the Trust Agreement, the Trustee will hold interests acquired from the
<br /> Contractor in the Ground Lease, Lease and Improvements in trust for the benefit of the Certificate
<br /> Owners.
<br /> The schedule of Lease Payments, interest rates, the total interest cost, and the net interest
<br /> cost upon which this bid is based are as follows:
<br /> Payment Date Principal
<br /> (October 1) Component Interest Rate
<br /> 1992 $ 65,000 S 2 %
<br /> 1993 70,000 k. L_ %
<br /> 1994 75,000 -.2- %
<br /> 1995 75,000 h-.L %
<br /> 1996 80,000
<br /> 1997 85,000
<br /> 1998 90,000
<br /> 1999 95,000 S. S %
<br /> 2000 100,000 lc %
<br /> 2001 110,000 b•1% %
<br /> 2002 115,000 lo•L' %
<br /> 2003 120,000
<br /> 2004 130,000 to,32S%
<br /> 2005 140,000
<br /> 2006 150,000 G sj.S%
<br /> iv
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