HomeMy WebLinkAbout1973-11-28
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Bozeman, Montana
28 November 1973
The Commission of the City of Bozeman met in regular session in the Commission Room, Mlmicipal
Building, 28 November 1973 at 1: 15 0' clock p.m. Present "ere Mayor Grabow, Commissioner Sedivy, Com-
missioner Lehrkind, Commissioner Vandeventer, Commissioner Vollnlcr, City Manager Fryslie, Assistant
City Manager Keyes, City Attorney Berg and the Clerk.
Commissioner Sedivy opened the meeting with a prayer and the following proceedings were had.
Minutes of the regular meeting held Hednesday, 21 November 1973 were approved as read.
.H."~riE.B..LHe";>.2)jl1.~_O_Il:-.J~~.~_.1_632 - -I..ntel!.L!-..9 Cre_ate_ SID Ho ._.2...35 ,_E.f!.vin~ l~eng.ock S~Feet. Fifth to Seventh
Avenues
'l~his was the time and place set in Commission Resolution No. 1632 to hear protests to the creation
of Special Improvement District Ho. 535 . Affidavit of publication of Notice and the Clerk's mailing
certificate stating that all property owners had been notified as required by law .rere presented. There
were no written protests on file and no one appeared to protest verbally. It was moved by Commissioner
Sedivy, seconded by Commissioner Lehrkind, that they concur in the recommendation of the City Manager
that the records show there were no protests filed artd no one appeared to protest verbally and that they
instruct the City Attorney to draw up a resolution to create the district and the motion .ras carried b;,r
the following Aye and No vote: those voting Aye being Commissioner Sedivy, Commissioner Lehrkind, Com-
missioner Vandeventer, Commissioner Vollmer, and Mayor Grabow; those voting No, none.
Condi tional Use Permit -:... Sherwoods Apartments - Hest College Stre~~~nd VlesY of South 16 Avenue
This was the time and place set for a public hearing to consider the application of Walt Gosser
for a conditional use permit to allow the construction of 48 two-bedroom apartment units known as the
Sherwood Apartments on 2.15 acres in the Southwest one-quarter of the Southwest one quarter of Section
Twelve, Township 'l'wo South, Range Five East, M.P.M, located on Hest College Street ,just west of South
16th Avenue, Gallatin County, !1ontana.
The Bozeman City Zoning Commission having reviewed the proposal for a conditional use permit re-
commended granting the permit with the following list of conditions to be attached to the permit.
1. That the recreational area shown on the plans be re-arranged
and redesigned to offer better facilities for potential residents.
2. 'l'hat the developer work with the planning staff in trying to
align the access point to Hest College Street with the access
point in the Montana State University College Housing plans.
3. 'I'hat a 6' landscaped fence be provi ded separating the develop.-
ment property from adjacent properties.
4. That the site development plans, especially the sewer and "rater
be approved by the City ~ngineer.
A number of interested persons were present to discuss the area in question and to register their
complaints and protests.
Following an extensive discussion, the City Hanager recommended that the application of ivaI t Gosser
for a conditional use permit be approved based upon the fact that both the Bozeman City-County Planning
Board staff and the City staff had studied the plans and found that they more than met all zoning re-.
quirements. It was moved by Commissioner Lehrkind, seconded by Commissioner Vandeventer, that they ap-
prove the application of Walt Gosser for a conditional use permit to construct an apartment complex knmm
as the Sherwoods Apartments located on Hest College Street ,just vest of South 16th Avenue. Those voting
Aye being Connnissioner Vandeventer, Commissioner Eedivy and Hayor Grabmv; those voting No being Commissioner
Lehrkind and Commissioner Vollmer. The motion was carried.
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Di~~Jon - ~tate Highway Engineers_
Alex Za.bi tnov, Dennis Williams and Lee Cloninger of the Hontana Highway Department appeared be-
fore the Commission to discuss the location of the existin~ traffic lights standing at the corner of
Eleventh Avenue and West Hain Street.
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After a thorough discussion the Commission thanked the representatives of the Hi~h"Tay Department
for appearing to discuss this problem.
fl_~~_~F__Ii.e_'Y_enue Bon<is_ an~undin..,g
Mr. IJeonard E. Hat z of E. F. Hut ton and Company, Inc., and Dain, Kalman and Quail, Inc. arpeared
before the Commission to present a proposal to refinance the Sewerage System Refundi.np: Revenue Bonds
which was accomplished in May of 1972 as set forth in full:
EF Hutton & Company, Inc.
1700 Broadway Street
Denver, CO 80202
November 28, 1973
City Commission
City of Bozeman
Bozeman, M'1' 59715
Gentlemen:
In May 1972, E. F. Hutton & Company, Inc., Dain, Kalman & Quail,
Incorporated, among others, underwrote $1,325,000 Sewerage System
Refunding Revenue Bonds of your City. The proceeds of the issue
was invested in various government agencies in amounts sufficient to
pay when due the outstanding indebtedness.
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'I'ierney & Company of Denver, Colorado submitted to the City the
idea for this refunding calculating the dollar amount of the resultinp:
savings in interest. Subsequent to the issuance of the bonds a
review by the City discovered an error in calculations ,nlich reduced
significantly the savings actually accruing to the City, although
other advantages of the refunding remained as represented. Tierney &
Company was advised of the error in calculations and indicated their
willingness to remit to the City certain sums in an effort to rectify
the situation. The State Auditor's office in their review of the
City's finances were also apprised of this miscalculation and the
representations in Tierney & Company's letters of June 1, 1972 and
September 4, 1973.
E. F. Hutton & Company, Inc. and Dain, Kalman & Quail, Incorporated
purchased these bonds in good faith and do not admit financial liability
in connection with Tierney & Company's representations. However, it
appears to us that it is possible by refunding the issue under present
market conditions to realize the approximate savings which were intended
to be secured by the previous transaction. In an effort to resolve
this situation to the satisfaction of all parties, we propose the
following:
For $1,210,000 City of Bozeman, Montana Sewerage System Refunding
Revenue Bonds, dated January 1, 1974, we will pay you the full par
value thereof, plus a total premium of $15,000, plus accrued interest
from January 1, 1974 to the date of delivery to us. The first
interest coupon will be July 1, 1971~ and each six months thereafter.
The refunding bonds will be eligible for redemption on July 1, 1980,
at par and accrued interest. The refunding issue .ri11 mature and
bear interest as follows:
Amount M~urity yOUpoE.
--
I $55,000 7-1-74 4-1/2%
40,000 1-1-75 4-1/2%
40,000 ~(-1-75 4-1/2%
40,000 1-1-76 4-1/2%
40,000 7-1-76 4-1/2~;
45,000 1-1-77 4-1/2%
45,000 7-1-77 4-1/2%
45,000 1-1-78 4-1/2%
45,000 7-1-78 4-1/2;{
45,000 1-1-79 4-1/2;;
45,000 7-1-79 4-1/2%
50,000 1-1-80 4-1/2;;
215.000 7-1-80 4-1/2%
55,000 1-1-81 4-l/2/~
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Amount MaturitY:. .9_2-upon
."..~,~--
55,000 7-1-81 1.-1/2~&
60,000 1-1-82 4-1/2%
60,000 7-1-82 4-1/2~~
60,000 1--1-83 4-1/2~;
60,000 7-1-83 4-1/2%
65,000 1-1-81. 4-1/2~; I
45,000 7-1-81t 4-1/2%
*1,210,000
On the proposed new issue, the total interest cost less the premium of
$15,000 from January 1, 1974 to the respective maturity dates will
be $307,762.50. The total interest cost on the presently outstanding
issue from January 1, 1974 to the respective maturity dates is
$358,210.00 making a difference of $50,ltln.50.
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1. The proceeds of this sale will be paid to the Trustee and will be
used by him to purchase from us direct obligations and obligations
of agencies of the United States Government, which obligations
will be deposited to secure the semi-annual interest and maturing
principal on the outstanding bonds to be refunded. These securities
will be so calculated that their interest and maturing principal
on the outstanding bonds to be refunded. These securities will
be so calculated that their interest and maturing principal will
be available with the 'l'rustee to meet the requirements on the
bonds being refunded prior to the date on llhich their interest
and principal shall become due and payable.
2. At our expense we will:
(a) Calculate, purchase and hold for redelivery and sale to the
'l'rustee for the City, at the time of closing, an escrow
account, including beginning cash balance, consisting of
direct obligations of the United States Government and
obligations of agencies thereof which by their interest
payments and maturing principal will secure and pay the
interest and principal of the revenue issues to be refunded
, as such shall become due and payable. This escrow shall be
established in a commercial bank which is a member of the
F.D.r.C. and which has full trust powers.
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(b) Engage the firm of Dorsey, Marquart, Windhorst, West &
Halladay, Minneapolis, Minnesota to draft and direct all
proceedings incident to the issuance of the bonds, including
the escrow agreement, and the City agrees to adopt said pro-
ceedings prepared by said attorneys in order to legally
effect the refunding in an expeditious manner; it being
understood and agreed that the refunding bonds shall be
issued under and secured by the provisions of the existing
bond ordinance so far as applicable.
(c) Engage a certified public accounting firm to verify all
proposed transactions of the escrow account.
(d) Pay all costs of the Trustee holding the escrow account.
(e) Furnish printed bonds with steel engraved borders rea~y for
signature.
3. He will sell to the City, through the Trustee, the government
obligations and beginning cash balance necessary to establish
the refunding escrow account for an amount equal to the par
proceeds of the refunding bonds, plus accrued interest on the
bonds being refunded from their last interest payment date to the
date of closing. If closed on January lt, 1974, the purchase
price shall be $1,210,000 plus accrued interest on the outstanding
debt of approximately $153,50 per day, or $614.00.
In this transaction, we are acting as principal, not agent,
both on the purchase of the refunding bonds and on the sale of the
government obligations to the City, and we anticipate making a
profit on this transaction.
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4. The escrow bank will be determined by us with the City's approval.
5. This proposal is subject to:
(a) The unqualified legal opinion of Dorsey, Marquart, Windhorst,
West & Halladay, Minneapolis, Minnesota, that the refunding
bonds as we contemplate their being issued under the terms
and calculations of this proposal are legally issued and
that they are exempt from present Federal Income Taxes.
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(b) Delivery of the bonds to us by January 15, 1974, or thereafter
at our option.
(c) The satisfaction of any claim which has been or may be
asserted by the City in connection with the 1972 refunding
of the sewerage system revenue bond issue upon the completion
of the refunding contemplated in this proposal.
6. It is understood that a modification of Federal laws or regulations
with respect to refunding bonds of this nature could preclude the
giving of an unqualified approving opinion by bond counsel as
to the validity of the bonds or the exemption of the interest
thereon from Federal income tax. In this event we would endeavor
to formulate a revised proposal for your consideration which would
conform to such laws and regulations. However, the City is under
no financial obligation to us in this event and any expenses incurred
by us in attempting to affect the refunding is solely our responsibility.
7. This agreement constitutes the entire agreement between the City and
Underwriters.
Respectfully submitted
E. F. HUTTON & COMPANY INC.
DAIN, KAUWJ ?" Q.UAIL, INCORPORATED
By
Leonard E. Matz
This proposal is hereby accepted for and on behalf of the City of Bozeman,
Montana by proper authorization this ___ day of , 1973.
ATTEST:
The City Manager concurred with the recommendation of the Director of Finance and recommended
to the Commission that they give approval to the firm of E. F. Hutton & Company, Inc., and Dain Kalman
& Quail, Inc., to accomplish this refunding under the terms of their proposal as set forth. It was
moved by Commissioner Vandeventer, seconded by Commissioner Vollmer, that they enter into this proposal
as presented and the ~1~yor and Clerk of the Commission be instructed and directed to sign the proposal
for the City of Bozeman and the motion was carried by the following Aye and No vote: those voting ~ye
being Commissioner Vandeventer, Commissioner Vollmer, Commissioner Lehrkind, Commissioner Sedivy, and
Mayor Grabow; those voting No, none.
Bight.s>f .~. Easementf3-, Water Transmission Line:
a) Anna Fridl~'y'-
p) Big Sky Girl Sco'l!.t CouncilL...lnc..:...
An Easement and Right of Way Agreement for a water transmission line from Anna Fridley and an
Easement and Right of Way Agreement from Big Sky Girl Scout Council, Inc., for a water transmission line
for the purpose of installing, operating, using, repairing, replacing, maintaining and removing a water
transmission thereto upon and across portions of the E 1/2, NE 1/4, Sec. 7, T2S, R5E, M.P.M., Gallatin
County, Montana was presented.
The City 11anager recommended that the City enter into the easements as approved by the City Attorney
and it was moved by Commissioner Vollmer, seconded by Commissioner Sedivy, that the Easement Agreements
be entered into by the City and the Mayor and Clerk of the Commission be authorized and directed to sign
for the City of Bozeman and the motion was carried by the following Aye and No vote: those voting
Aye being Commissioner Vollmer, Commissioner Sedivy, Commissioner Lehrkind, Commissioner Vandeventer,
and Mayor Grabow; those voting No, none.
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~uthority to Call for Bi~s - Bozeman Creek Transmiss~on Line -~en Bids 19 December 1973
Plans and specifications covering the proposed construction for the Water Transmission Line,
Bozeman Creek Supply, Bozeman, ~lontana, was placed before the Commission. In concurrence with the
consulting engineers, the City Manager recommended that the construction bids be authorized. It was
moved by Commissioner Sedivy, seconded by Commissioner Lehrkind, that the plans and specifications be
approved and the Clerk of the Commission be authorized and directed to publish a "Call for Bids" for
the construction of the Water Transmission Line, Bozeman, Creek Supply, Bozeman, with an opening date
of 19 December. The motion was carried by the following Aye and No vote: those voting Aye being
Commissioner Sedivy, Commissioner Lehrkind, Commissioner Vandeventer, Commissioner Vollmer, and Mayor
Grabow; those voting No, none.
Gas Tax Project Agreement - Road Oil Purchase 212(27)
Project No. 212(27) for the maintainenance of City Streets and including the purchase of Road Oil
from the Department of Highways at .1372 per gallon plus 10%, such quantity not to exceed a total dollar
amount in excess of $4,000.00 was presented. It was moved by Commissioner Lehrkind, seconded by Commis-
sioner Vandeventer, that the Gas Tax project 212(27) Agreement be approved and that the Hayor and Clerk
of the Commission be authorized and directed to sign the Agreement on behalf of the City of Bozeman and
the motion was carried by the following Aye and No vote: those voting ~ve being Commissioner Lehrkind,
Commissioner Vandeventer, Commissioner Sedivy, Commissioner Vollmer, and l~ayor Grabow; those voting No,
none.
~],-2_cl~~ioE..:.",_ a) Key Club Week, 25 November to 1 December, bl Conserve for the New Year
Jvlayor Grabow announced his proclamation designating the w-eek of 25 November to ]. December
as l'Key Club \'leek" in the City of Bozeman and called upon the citizens of the City of Bozeman to make
themselves aware of Key Club International and to offer all due support to the young men of this
organization who are this day fitting themselves to be better, more responsible citizens when they take
their place in the adult world. It was moved by Commissioner Vandeventer, seconded by Commissioner
Vollmer, that the Mayor's proclamation be endorsed and the motion was carried by the followine: Aye and
No vote: those voting Aye being Commissioner Vandeventer, Commissioner Vollmer, Commissioner Lehrkind,
Commissioner Sedivy, and Hayor Grabow; those voting No, none.
A proclamation proclaiming this Holiday Season as a time to conserve the limited resources for
the New Year in Bozeman and commend this occasion to the Citizens of our City was presented. It was
moved by Commissioner Vollmer, seconded by Commissioner Lehrkind, that they endorse the Hayor's pro-
clamation as presented and the motion was carried by the following Aye and No vote: those voting ~ye
being Commissioner Vollmer, Commissioner Lehrkind, Commissioner Sedivy, Commissioner Vandeventer, and
Mayor Grabow; those voting Ho, none.
!!~~~Y!L.l.9..-;:__g} ty, Manager_]'~lie, 30 l!..ovember toT December l~}J.
The City Manager requested that he be granted leave of absence from 30 November to 7 December and
that Assistant City Manager Keyes be designated to perform the duties of the City N!anager during this
period. It was moved by Commissioner Lehrkind, seconded by Commissioner Vandeventer, that the above
request be granted and that Assistant City Manager Keyes be designated as Actine: City Hanager during
this period and the motion was carried by the following Aye and No vote: those voting Aye being Com-
missioner Lehrkind; Commissioner Vandeventer, Commissioner Sedivy, Commissioner Vollmer, and r~ayor
Grabow; those voting No, none.
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~i ~ Liability Insurance.
It was moved by Commissioner Vandeventer, seconded by Commissioner Vollmer, that the Commission
approve the $1,000,000.00 limit fire and liability insurance including Errors and Omissions and police
wi th National Indemnity Company at a cost of $12,574.00. The motion ,.;as carried by the following Aye
and No vote: those voting Aye being Commissioner Vandeventer, Commissioner Vollmer, Commissioner
Lehrkind, Commissioner Sedivy, and Mayor Grabow; those voting No, none.
Adjournment
There being no further business to come before the Commission at this time, it was moved by Com-
missioner Vollmer, seconded by Commissioner Sedivy, that the meeting be adjourned and the motion was
carried by the following Aye and No vote: those voting Aye being Commissioner Vollmer, Commissioner
Sedivy, Commissioner Lehrkind, Commissioner Vandeventer,
Bnffir, Grabo,,; t?sefvoting !lo, none.
, ILI{{~ !!i~ ~.2!L~l~
ATTEST:
c~ // ~:>'_ ~
c;.../J:'t"';, .-:( ~.~ c!
ERNA V.- lIARDING L
Clerk of the City Commission
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