HomeMy WebLinkAbout20- Special Improvements District No 747 Bond, Series 2020$4,001,000
Special Improvement District No. 747 Bond, Series 2020
City of Bozeman, Montana
Transcript Index
Date of Closing: August 14, 2020
Issuer: City of Bozeman, Montana
Governing Body: City Commission
Chris Mehl, Mayor
Jeff Mihelich, City Manager
Kristin Donald, City Finance Director
Mike Maas, City Clerk
Registrar: City Clerk
Bond Counsel: Dorsey & Whitney LLP
Lender: Sterling National Bank
Lender’s Counsel: Gilmore & Bell, P.C.
1. Plat of Special Improvement District No. 747
2. Resolution No. 4954; Resolution Relating to Special Improvement District No. 747 for
Local Improvements to Manley Road; Declaring It to be the Intention of the City
Commission to Create the District for the Purpose of Undertaking Certain Local
Improvements and Financing the Costs Thereof and Incidental Thereto Through the
Issuance of Special Improvement District Bonds Secured by the City’s Special
Improvement District Revolving Fund
3. Affidavit of Publication of Notice of Passage of Resolution of Intention
4. Affidavit of Mailing of Notice of Passage of Resolution of Intention
5. Minutes of the February 11, 2019 regular meeting of the City Commission at which
public hearing was conducted and protests were heard and passed upon
6. Resolution No. 4955; A Resolution of the City Commission of the City of Bozeman,
Montana, Relating to Special Improvement District No. 747; Creating the District for the
Purpose of Undertaking Certain Local Improvements in and about Manley Road Between
the Intersection with Griffin Drive and the Northern Boundary of Gallatin Park
Subdivision and Financing the Costs Thereof and Incidental Thereto through the Issuance
-2-
of Special Improvement District Bonds Secured by the City’s Special Improvement
District Revolving Fund
7. Affidavit of Publication of Invitation to Bid
8. Recommendation for Award; Copy of Certified Bid Tab; and Notice of Award
9. Resolution No. 5208, Resolution Relating to $4,001,000 Special Improvement District
No. 747 Bond, Series 2020; Fixing the Form and Details and Providing for the Execution
and Delivery Thereof and Security Therefor
10. Certificate Showing Due Execution of Construction Contract
11. Certificate as to Organization
12. Officers’ Certificate
13. Rebate Certificate
14. Affidavit as to Signatures of Officers
15. City Clerk’s Certificate and Receipt
16. Certificate and Receipt of Lender; Letter from Lender to City; Certificate of Sterling
National Funding Corp.
17. Internal Revenue Service Form 8038-G
18. Specimen Bond
19. Opinion of Bond Counsel
20. Chapter 2, Article 6, Division 6 of the City Code Special Improvement District
Revolving Fund
CERTIFIED BID TABULATIONS - ROAD SCHEDULE
MANLEY ROAD FROM GRIFFIN DR. TO GALLATIN PARK DR.
CITY OF BOZEMAN
Robert Peccia & Associates, Inc.
3810 Valley Commons Drive #4, Bozeman, MT 59718
Bid Due: April 14, 2020 Bid Opening: April 17, 2020 at 4 pm
Item Unit
No.Quantity Unit Description
ROAD SCHEDULE
1 1 LS Mobilization, Bonding, & Submittals (5% Max)$154,810.00 $154,810.00 $163,000.00 $163,000.00 $170,000.00 $170,000.00 $164,000.00 $164,000.00
2 1 LS Construction Surveying, Staking, & Testing $70,000.00 $70,000.00 $44,000.00 $44,000.00 $48,100.00 $48,100.00 $45,000.00 $45,000.00
3 1 LS Traffic Control $250,000.00 $250,000.00 $275,000.00 $275,000.00 $121,800.00 $121,800.00 $215,000.00 $215,000.00
4 1 LS Erosion Control & Permits $60,000.00 $60,000.00 $67,000.00 $67,000.00 $35,500.00 $35,500.00 $65,000.00 $65,000.00
5 130,000 UNIT Miscellaneous Work $1.00 $130,000.00 $1.00 $130,000.00 $1.00 $130,000.00 $1.00 $130,000.00
6 40 Hr Exploratory Excavation $300.00 $12,000.00 $300.00 $12,000.00 $440.00 $17,600.00 $315.00 $12,600.00
7 1 LS Dewatering $25,000.00 $25,000.00 $89,000.00 $89,000.00 $48,400.00 $48,400.00 $100.00 $100.00
8 5 EA Remove Tree $500.00 $2,500.00 $700.00 $3,500.00 $350.00 $1,750.00 $745.00 $3,725.00
9 3 EA Trim Tree $300.00 $900.00 $330.00 $990.00 $515.00 $1,545.00 $560.00 $1,680.00
10 1,380 CY Topsoil-Strip, Salvage, & Reuse $28.00 $38,640.00 $29.00 $40,020.00 $25.50 $35,190.00 $22.00 $30,360.00
11 1,380 CY Topsoil-Imported $35.00 $48,300.00 $36.00 $49,680.00 $40.00 $55,200.00 $45.00 $62,100.00
12 840 LF Remove Fence $2.00 $1,680.00 $2.95 $2,478.00 $1.00 $840.00 $3.00 $2,520.00
13 5 EA Remove Hydrant & Water Line $2,500.00 $12,500.00 $1,600.00 $8,000.00 $4,500.00 $22,500.00 $1,230.00 $6,150.00
14 588 LF Remove Culvert $13.00 $7,644.00 $16.00 $9,408.00 $11.00 $6,468.00 $4.50 $2,646.00
15 2 EA Modify Asbestos Manhole $4,000.00 $8,000.00 $2,700.00 $5,400.00 $5,600.00 $11,200.00 $800.00 $1,600.00
16 6 EA Adjust Manhole $375.00 $2,250.00 $400.00 $2,400.00 $1,250.00 $7,500.00 $930.00 $5,580.00
17 15 EA Adjust Water Valve $300.00 $4,500.00 $315.00 $4,725.00 $750.00 $11,250.00 $580.00 $8,700.00
18 1,057 SF Rigid Board Insulation $5.00 $5,285.00 $10.00 $10,570.00 $5.50 $5,813.50 $6.00 $6,342.00
19 33 CY Flowable Fill $150.00 $4,950.00 $225.00 $7,425.00 $275.00 $9,075.00 $165.00 $5,445.00
20 5 EA New Hydrant & Water Line $6,000.00 $30,000.00 $9,000.00 $45,000.00 $8,800.00 $44,000.00 $8,900.00 $44,500.00
21 1 EA Raise Hydrant $1,000.00 $1,000.00 $1,450.00 $1,450.00 $2,000.00 $2,000.00 $1,000.00 $1,000.00
22 289.5 LF 12" RCP Class 5 Storm Pipe $80.00 $23,160.00 $82.00 $23,739.00 $70.00 $20,265.00 $100.00 $28,950.00
23 9.5 LF 15" RCP Class 5 Storm Pipe $85.00 $807.50 $680.00 $6,460.00 $160.00 $1,520.00 $275.00 $2,612.50
24 216.0 LF 30" Equivalent RCPA Class 3 Pipe (22.5" x 36.25")$150.00 $32,400.00 $260.00 $56,160.00 $150.00 $32,400.00 $190.00 $41,040.00
25 30.5 LF 8" PVC Storm Pipe $30.00 $915.00 $90.00 $2,745.00 $47.00 $1,433.50 $78.00 $2,379.00
26 243.5 LF 12" PVC Storm Pipe $45.00 $10,957.50 $80.00 $19,480.00 $32.00 $7,792.00 $80.00 $19,480.00
27 1,175.5 LF 15" PVC Storm Pipe $50.00 $58,775.00 $58.00 $68,179.00 $33.00 $38,791.50 $81.00 $95,215.50
28 11.0 LF 21" PVC Storm Pipe $80.00 $880.00 $240.00 $2,640.00 $240.00 $2,640.00 $122.00 $1,342.00
29 37.0 LF 30" PVC Storm Pipe $110.00 $4,070.00 $180.00 $6,660.00 $80.00 $2,960.00 $134.00 $4,958.00
30 40.0 LF Remove & Reuse RCPA $120.00 $4,800.00 $105.00 $4,200.00 $410.00 $16,400.00 $91.00 $3,640.00
31 7 EA Square Storm Drain Inlet $3,000.00 $21,000.00 $2,750.00 $19,250.00 $2,600.00 $18,200.00 $2,675.00 $18,725.00
32 1 EA Double Storm Drain Inlet $5,200.00 $5,200.00 $4,600.00 $4,600.00 $5,400.00 $5,400.00 $4,350.00 $4,350.00
33 6 EA 48" Combination Manhole & Curb Inlet $4,200.00 $25,200.00 $4,000.00 $24,000.00 $3,600.00 $21,600.00 $4,900.00 $29,400.00
34 2 EA 48" Standard Straight Storm Manhole $3,300.00 $6,600.00 $3,300.00 $6,600.00 $3,400.00 $6,800.00 $3,800.00 $7,600.00
35 1 EA 60" Standard Straight Storm Manhole $6,000.00 $6,000.00 $4,800.00 $4,800.00 $5,200.00 $5,200.00 $5,450.00 $5,450.00
36 1 EA Outlet Control Structure $3,200.00 $3,200.00 $4,200.00 $4,200.00 $5,300.00 $5,300.00 $5,150.00 $5,150.00
37 1 EA Storm Water Treatment Device $20,000.00 $20,000.00 $21,000.00 $21,000.00 $19,800.00 $19,800.00 $28,000.00 $28,000.00
38 4 EA Trash Rack $1,200.00 $4,800.00 $1,050.00 $4,200.00 $1,400.00 $5,600.00 $750.00 $3,000.00
39 10 CY Rip Rap - Class 1 Random $100.00 $1,000.00 $240.00 $2,400.00 $310.00 $3,100.00 $205.00 $2,050.00
40 332 SY Drainage Geotextile $5.00 $1,660.00 $14.00 $4,648.00 $5.50 $1,826.00 $17.50 $5,810.00
41 45 CY Pipe Bedding Type 2 $50.00 $2,250.00 $55.00 $2,475.00 $65.00 $2,925.00 $67.00 $3,015.00
42 14,000 CY Street Excavation (Above Subgrade)$18.00 $252,000.00 $19.00 $266,000.00 $17.25 $241,500.00 $16.85 $235,900.00
43 500 CY Imported Borrow $28.00 $14,000.00 $27.00 $13,500.00 $27.00 $13,500.00 $36.75 $18,375.00
44 2,000 CY Subexcavation & Replacement Material (Below $45.00 $90,000.00 $42.00 $84,000.00 $41.00 $82,000.00 $46.50 $93,000.00
45 700 CY Muck Excavation & Replacement Material $40.00 $28,000.00 $42.00 $29,400.00 $43.00 $30,100.00 $190.00 $133,000.00
46 6,983 SY Path Geotextile $2.20 $15,362.60 $1.00 $6,983.00 $1.50 $10,474.50 $1.75 $12,220.25
47 18,812 SY Road Geotextile $4.50 $84,654.00 $4.50 $84,654.00 $4.60 $86,535.20 $4.50 $84,654.00
48 5,500 SY Subexcavation Geotextile $2.20 $12,100.00 $1.00 $5,500.00 $1.00 $5,500.00 $1.00 $5,500.00
49 1,100 SY Muck Excavation Geotextile $1.50 $1,650.00 $1.00 $1,100.00 $1.50 $1,650.00 $1.50 $1,650.00
50 8,495 CY Sub-Base Course (6" Minus)$28.00 $237,860.00 $24.00 $203,880.00 $30.00 $254,850.00 $35.25 $299,448.75
51 4,433 CY Crushed Base Course (1.5" Minus)$32.00 $141,856.00 $33.00 $146,289.00 $45.00 $199,485.00 $52.00 $230,516.00
52 4,180 TON Asphalt Pavement PG 58-28 $85.00 $355,300.00 $78.00 $326,040.00 $90.00 $376,200.00 $73.65 $307,857.00
53 144 SY Concrete Sidewalk 4" Thick (With 3" Thick Gravel Base)$55.00 $7,920.00 $57.00 $8,208.00 $93.00 $13,392.00 $55.00 $7,920.00
54 736 SY Concrete Sidewalk 6" Thick (With 3" Thick Gravel Base)$60.00 $44,160.00 $60.00 $44,160.00 $96.00 $70,656.00 $64.50 $47,472.00
55 78.7 SY Detectable Warning Panels $300.00 $23,610.00 $340.00 $26,758.00 $400.00 $31,480.00 $450.00 $35,415.00
56 7,132 LF Concrete Curb and Gutter $14.00 $99,848.00 $14.00 $99,848.00 $19.00 $135,508.00 $16.25 $115,895.00
57 480 LF Concrete Median Curb $20.00 $9,600.00 $16.00 $7,680.00 $18.50 $8,880.00 $16.75 $8,040.00
58 266 SY Concrete Double Gutter (7" Thick)$90.00 $23,940.00 $90.00 $23,940.00 $137.00 $36,442.00 $95.50 $25,403.00
59 203 SY Concrete Apron Fillets (7" Thick)$90.00 $18,270.00 $90.00 $18,270.00 $126.00 $25,578.00 $75.00 $15,225.00
60 58 SY Concrete Median Cap (3" Thick with 3" Gravel)$32.00 $1,856.00 $42.00 $2,436.00 $57.00 $3,306.00 $62.00 $3,596.00
61 2 EA Concrete Stairs $2,500.00 $5,000.00 $2,700.00 $5,400.00 $4,100.00 $8,200.00 $3,100.00 $6,200.00
62 22 LF Handrail $150.00 $3,300.00 $175.00 $3,850.00 $320.00 $7,040.00 $210.00 $4,620.00
63 160 LF Shared-Use Path Rail $25.00 $4,000.00 $20.00 $3,200.00 $37.00 $5,920.00 $20.00 $3,200.00
64 25 LF Retaining Wall $140.00 $3,500.00 $200.00 $5,000.00 $161.00 $4,025.00 $145.00 $3,625.00
65 1 LS Remove Pavement Markings $1,000.00 $1,000.00 $1,400.00 $1,400.00 $1,500.00 $1,500.00 $1,420.00 $1,420.00
66 45 GAL White Epoxy $125.00 $5,625.00 $90.00 $4,050.00 $94.00 $4,230.00 $91.00 $4,095.00
67 80 GAL Yellow Epoxy $125.00 $10,000.00 $90.00 $7,200.00 $94.00 $7,520.00 $91.00 $7,280.00
68 20 GAL Yellow Curb Epoxy $260.00 $5,200.00 $365.00 $7,300.00 $375.00 $7,500.00 $365.00 $7,300.00
69 790 LF 8" White Inlaid Thermoplastic $18.00 $14,220.00 $16.00 $12,640.00 $21.00 $16,590.00 $16.50 $13,035.00
70 150 LF 24" White Inlaid Thermoplastic $44.00 $6,600.00 $54.00 $8,100.00 $56.00 $8,400.00 $54.00 $8,100.00
71 1,140 SF White Inlaid Thermoplastic Words and Symbols $45.00 $51,300.00 $42.00 $47,880.00 $43.00 $49,020.00 $42.00 $47,880.00
72 1 LS Signing $70,000.00 $70,000.00 $72,000.00 $72,000.00 $73,000.00 $73,000.00 $70,500.00 $70,500.00
73 19 EA Delineator $110.00 $2,090.00 $84.00 $1,596.00 $87.00 $1,653.00 $85.00 $1,615.00
74 10 EA Remove & New Mailbox $450.00 $4,500.00 $300.00 $3,000.00 $570.00 $5,700.00 $310.00 $3,100.00
75 21,070 SY Hydraulic Seeding $2.00 $42,140.00 $1.10 $23,177.00 $2.60 $54,782.00 $3.30 $69,531.00
76 800 SY Erosion Control Blanket $6.00 $4,800.00 $6.50 $5,200.00 $3.50 $2,800.00 $5.25 $4,200.00
77 1 EA Tree $500.00 $500.00 $525.00 $525.00 $1,600.00 $1,600.00 $500.00 $500.00
78 11 EA Adjust Sprinkler System $4,000.00 $44,000.00 $4,400.00 $48,400.00 $4,100.00 $45,100.00 $5,600.00 $61,600.00
79 848 LF 4" PVC Schedule 40 Pipe (Irrigation Sleeve)$6.00 $5,088.00 $6.50 $5,512.00 $11.00 $9,328.00 $24.00 $20,352.00
80 3 EA Monument Box $400.00 $1,200.00 $425.00 $1,275.00 $1,100.00 $3,300.00 $920.00 $2,760.00
81 6 EA Reset Property Pin $300.00 $1,800.00 $325.00 $1,950.00 $350.00 $2,100.00 $500.00 $3,000.00
82 475 LF Fence $15.00 $7,125.00 $12.00 $5,700.00 $10.50 $4,987.50 $12.50 $5,937.50
83 16 CY Foundation - Concrete (Luminaire Foundations)$1,200.00 $19,200.00 $1,650.00 $26,400.00 $1,400.00 $22,400.00 $2,250.00 $36,000.00
84 400 LF Electric Conduit 1.5" PVC $12.00 $4,800.00 $10.00 $4,000.00 $7.00 $2,800.00 $13.75 $5,500.00
85 4,300 LF Electric Conduit 2" PVC $14.00 $60,200.00 $11.00 $47,300.00 $7.25 $31,175.00 $18.25 $78,475.00
86 1,700 LF Electric Conduit 3" PVC $18.00 $30,600.00 $12.50 $21,250.00 $7.50 $12,750.00 $23.25 $39,525.00
87 38 EA Pull Box, Composite Type 1 (With Concrete Collar)$700.00 $26,600.00 $560.00 $21,280.00 $350.00 $13,300.00 $1,115.00 $42,370.00
88 2 EA Pull Box, Composite Type 2 (With Concrete Collar)$900.00 $1,800.00 $615.00 $1,230.00 $450.00 $900.00 $1,320.00 $2,640.00
89 19,700 LF Conductor, Copper AWG6-600V $1.10 $21,670.00 $1.50 $29,550.00 $1.25 $24,625.00 $2.00 $39,400.00
90 2,200 LF Conductor, Copper AWG10-600V $0.75 $1,650.00 $1.12 $2,464.00 $1.00 $2,200.00 $1.00 $2,200.00
91 27 EA Colored Luminaire Standard (30' Tall with 6' Mast Arm)$3,800.00 $102,600.00 $3,400.00 $91,800.00 $4,300.00 $116,100.00 $5,675.00 $153,225.00
92 27 EA Colored LED Assembly $700.00 $18,900.00 $400.00 $10,800.00 $750.00 $20,250.00 $920.00 $24,840.00
93 1 EA Service Assembly - 30 AMP $4,000.00 $4,000.00 $2,800.00 $2,800.00 $2,500.00 $2,500.00 $4,670.00 $4,670.00
94 1 EA Remove & Salvage Luminaire $1,000.00 $1,000.00 $1,100.00 $1,100.00 $1,000.00 $1,000.00 $2,230.00 $2,230.00
95 1 LS Glen Lake Outfall Conveyance $50,000.00 $50,000.00 $31,000.00 $31,000.00 $20,500.00 $20,500.00 $115,000.00 $115,000.00
96 1 LS Stream Relocation $30,000.00 $30,000.00 $29,000.00 $29,000.00 $15,300.00 $15,300.00 $72,000.00 $72,000.00
97 362 LF MGS Guardrail with Long Posts $54.00 $19,548.00 $60.00 $21,720.00 $64.00 $23,168.00 $61.00 $22,082.00
$3,251,176.60 $3,274,177.00 $3,265,984.70 $3,797,309.50
$607,720.00 $493,896.00 $535,190.00 $647,175.00
$3,858,896.60 $3,768,073.00 $3,801,174.70 $4,444,484.50
Staci Venner, P.E.
Robert Peccia & Associates
4/20/2020
Total PriceTotal Price
Williams Civil Construction FirstMark Construction
Unit Price Unit Price
TOTAL ROAD SCHEDULE:
Engineer's Estimate Knife River - Belgrade
Total PriceTotal Price Unit Price
PROJECT TOTAL:
Unit Price
TOTAL SANITARY SCHEDULE (FROM NEXT SHEET):
4/20/2020
CERTIFIED BID TABULATIONS - SANITARY SEWER SCHEDULE
MANLEY ROAD FROM GRIFFIN DR. TO GALLATIN PARK DR.
CITY OF BOZEMAN
Robert Peccia & Associates, Inc.
3810 Valley Commons Drive #4, Bozeman, MT 59718
Bid Due: April 14, 2020 Bid Opening: April 17, 2020 at 4 pm
Item Unit
No.Quantity Unit Description
SANITARY SEWER SCHEDULE
1-B 1 LS Mobilization, Bonding, and Submittals (5% Max)$28,940.00 $28,940.00 $24,500.00 $24,500.00 $28,700.00 $28,700.00 $19,500.00 $19,500.00
5-B 25,000 UNIT Miscellaneous Work $1.00 $25,000.00 $1.00 $25,000.00 $1.00 $25,000.00 $1.00 $25,000.00
7-B 1 LS Dewatering $25,000.00 $25,000.00 $75,000.00 $75,000.00 $23,200.00 $23,200.00 $85,600.00 $85,600.00
10-B 170 CY Topsoil-Strip, Salvage, and Reuse $28.00 $4,760.00 $30.00 $5,100.00 $14.00 $2,380.00 $41.50 $7,055.00
11-B 170 CY Topsoil-Imported $35.00 $5,950.00 $35.00 $5,950.00 $36.00 $6,120.00 $62.00 $10,540.00
18-B 1,288 SF Rigid Board Insulation $5.00 $6,440.00 $11.00 $14,168.00 $5.50 $7,084.00 $6.00 $7,728.00
19-B 2 CY Flowable Fill $200.00 $400.00 $270.00 $540.00 $410.00 $820.00 $135.00 $270.00
75-B 1,640 SY Hydraulic Seeding $2.00 $3,280.00 $1.10 $1,804.00 $2.60 $4,264.00 $3.30 $5,412.00
98 1 LS Sanitary Bypass Pumping $70,000.00 $70,000.00 $40,000.00 $40,000.00 $40,300.00 $40,300.00 $33,650.00 $33,650.00
99 1 LS Temporary Water Supply $25,000.00 $25,000.00 $15,000.00 $15,000.00 $10,500.00 $10,500.00 $20,250.00 $20,250.00
100 2 EA Adjust Water Main $7,500.00 $15,000.00 $5,700.00 $11,400.00 $10,000.00 $20,000.00 $10,000.00 $20,000.00
101 1 EA Adjust Water Service $1,500.00 $1,500.00 $1,700.00 $1,700.00 $7,200.00 $7,200.00 $2,700.00 $2,700.00
102 5 CY Remove Flowable Fill $800.00 $4,000.00 $48.00 $240.00 $120.00 $600.00 $135.00 $675.00
103 1,291.6 LF Remove & Dispose 20" Asbestos Sanitary Pipe $50.00 $64,580.00 $20.00 $25,832.00 $70.00 $90,412.00 $22.50 $29,061.00
104 4 EA Remove & Dispose 48" Asbestos Sanitary Manhole $3,000.00 $12,000.00 $2,700.00 $10,800.00 $2,700.00 $10,800.00 $1,790.00 $7,160.00
105 3 EA Connect to Existing Sanitary Sewer $2,000.00 $6,000.00 $2,500.00 $7,500.00 $4,100.00 $12,300.00 $5,590.00 $16,770.00
106 1,285.6 LF 36" PS-46 PVC Sanitary Pipe $200.00 $257,120.00 $145.00 $186,412.00 $150.00 $192,840.00 $240.00 $308,544.00
107 3 EA 72" Sanitary Manhole (Includes Extra Depth)$12,000.00 $36,000.00 $8,600.00 $25,800.00 $6,900.00 $20,700.00 $9,800.00 $29,400.00
108 1 EA 72" Sanitary Straight Manhole $10,000.00 $10,000.00 $7,700.00 $7,700.00 $6,900.00 $6,900.00 $6,900.00 $6,900.00
109 6 EA Concrete Anchor $300.00 $1,800.00 $750.00 $4,500.00 $3,500.00 $21,000.00 $800.00 $4,800.00
110 110 CY Imported Trench Backfill $45.00 $4,950.00 $45.00 $4,950.00 $37.00 $4,070.00 $56.00 $6,160.00
$607,720.00 $493,896.00 $535,190.00 $647,175.00
Staci Venner, P.E.
Robert Peccia & Associates
4/20/2020
TOTAL SANITARY SEWER SCHEDULE:
Unit Price Total Price Unit Price Total Price Unit Price Total Price Unit Price Total Price
Engineer's Estimate Knife River - Belgrade Williams Civil Construction FirstMark Construction
4/20/2020
EXHIBIT C 10/16/2018
ENGINEER'S PROBABLE CONSTRUCTION COST
MANLEY ROAD SPECIAL IMPROVEMENTS DISTRICT
BOZEMAN, GALLATIN COUNTY, MONTANA
ENGINEER'S ENGINEER'S
ENGINEER'S ENGINEER'S UNIT TOTAL
ITEM DESCRIPTION QUANTITY UNIT PRICE PRICE
0001 Mobilization/Demobilization, Bonding, & Submittals (May not exceed 5%) 1 LS $175,000.00 $175,000
0002 Preparation, Implementation, & Administration of SWPPP 1 LS $25,000.00 $25,000
0003 Traffic Control 1 LS $200,000.00 $200,000
0004 Exploratory Excavation 1 LS $10,000.00 $10,000
0005 Miscellaneous Work 50,000 EA $1.00 $50,000
SUBTOTAL $460,000.00
1101 Existing Road Sign Salvage 19 EA $200.00 $3,800.00
1102 Existing Tree Relocation 10 EA $450.00 $4,500.00
1103 Existing Tree Removal 10 EA $600.00 $6,000.00
1104 Fence Removal 1100 LF $5.00 $5,500.00
1105 Topsoil Salvage & Re-Use (6" Assumed Thickness) 3,903 CY $22.33 $87,177.61
1106 Pavement Sawcut 506.3 LF $4.00 $2,025.04
1107 Asphalt Pulverization & In-Place Mixing w/Base Course 13,252.4 SY $5.00 $66,261.96
1108 Existing Curb & Gutter Removal & Disposal 392 LF $5.50 $2,156.00
1109 Existing Sidewalk Removal & Disposal 144 SY $18.00 $2,588.01
1110 Existing Asphalt Trail Removal & Disposal 575 SY $18.00 $10,352.03
1111 Excavation Above Subgrade - Native Soils 2,619 CY $15.00 $39,288.30
1112 Excavation Above Subgrade - Asphalt & Gravel 2,497 CY $15.00 $37,447.85
1113 Subexcavation/Replacement Below Subgrade 500 CY $53.00 $26,500.00
SUBTOTAL $293,596.80
1201 Asphalt (4" thick) 13,383 SY $18.00 $240,886.82
1202 Asphalt (3" thick)1,333 SY $20.00 $26,664.46
1203 Base Course Gravel (1-1/2" Minus, 6" Thick) 2,966 CY $25.00 $74,151.40
1204.a Sub-Base (Salvaged Asphalt Millings & Gravel Mix)2,470 CY $17.00 $41,990.00
1204.b Sub-Base Gravel (6" Minus) - Import 3,826 CY $20.00 $76,512.49
1205.a Embankment Placed from Onsite Material 6,523 CY $7.85 $51,203.16
1205.b Imported Non-structural Embankment 4,926 CY $7.85 $38,671.49
1206 Geosynthetic Fabric 17,796 SY $6.00 $106,778.02
1207 Curb & Gutter 7,276 LF $18.00 $130,974.58
1208 Median Concrete Curb Pin-Down 876 LF $20.00 $17,514.99
1209 Raised Median Concrete Cap (4" Thick) & Base 94 SY $47.00 $4,428.66
1210.a Mixed-Use Trail Asphalt (3" thick, 11' wide)7,302 SY $15.00 $109,527.09
1210.b Mixed-Use Trail Base Course Gravel (1-1/2" Minus, 12" thick, 13' wide)2,918 CY $25.00 $72,948.56
1211.a Pedestrian Ramp-COB Standard One Way 32 EA $800.00 $25,600.00
1211.b Pedestrian Ramp-COB Standard Two Way 2 EA $3,000.00 $6,000.00
1212 Valley Gutter 5,115 SF $13.00 $66,495.86
1213 Concrete Sidewalk Relacement 200 SF $6.00 $1,200.00
1214 Reinforced Concrete Drive Apron 5,261 SF $10.00 $52,609.62
1215 Topsoil Import 0 CY $25.00 $0.00
1216.a Road Sign - R1-1 7 EA $200.00 $1,400.00
1216.b Road Sign - R2-1 6 EA $200.00 $1,200.00
1216.c Road Sign - R3-8b 1 EA $200.00 $200.00
1216.d Road Sign - R3-17 10 EA $200.00 $2,000.00
1216.e Road Sign - R4-7 2 EA $200.00 $400.00
1216.f5 Road Sign - R6-1 2 EA $200.00 $400.00
1216.g Road Sign - R7-1 6 EA $200.00 $1,200.00
1216.h Road Sign - D3-1 14 EA $200.00 $2,800.00
1217 Road Sign Post & Base 48 EA $200.00 $9,600.00
1218 Yellow Flex Delineator 9 EA $100.00 $900.00
1219.a Pavement Marking-Lane Symbol (White Thermoplastic)20 EA $500.00 $10,000.00
1219.b Pavement Marking-Lane Word (White Thermoplastic)4 EA $600.00 $2,400.00
1219.c Pavement Marking-Bicycle Symbol (White Thermoplastic)30 EA $600.00 $18,000.00
1219.a Road Striping - 4" Wide Solid Yellow Epoxy Paint 3,825 LF $1.50 $5,737.50
1219.b Road Striping - 4" Wide Striped Yellow Epoxy Paint (9' Stripe/15' Space)4,425 LF $1.50 $6,637.50
1219.c Road Striping - 4" Wide Solid White Epoxy Paint 500 LF $1.50 $750.00
1219.d Road Striping - 4" Wide Solid White Epoxy Paint (9' Stripe/15' Space)1,985 LF $1.50 $2,977.50
1219.e Road Striping - 8" Wide Solid White Inlaid Thermoplastic 582 LF $12.00 $6,984.00
1219.f Road Striping - 24" Wide Solid White Inlaid Thermoplastic 80 LF $36.00 $2,880.00
1219.g Median Bullnose Curb Paint - 24" Wide Solid Yellow Epoxy Paint 18 LF $10.00 $180.00
SUBTOTAL $1,220,803.70
SCHEDULE II - ROAD IMPROVEMENTS
SCHEDULE 0 - MISCELLANEOUS
SCHEDULE I - ROAD DEMOLITION & EXCAVATION TO SUBGRADE
EXHIBIT C 10/16/2018
ENGINEER'S PROBABLE CONSTRUCTION COST
MANLEY ROAD SPECIAL IMPROVEMENTS DISTRICT
BOZEMAN, GALLATIN COUNTY, MONTANA
ENGINEER'S ENGINEER'S
ENGINEER'S ENGINEER'S UNIT TOTAL
ITEM DESCRIPTION QUANTITY UNIT PRICE PRICE
1301 Valve Box Adjustment 10 EA $400.00 $4,000.00
1302 Fire Hydrant Adjustment - Horizontal 7 EA $2,800.00 $19,600.00
1303 Fire Hydrant Adjustment - Vertical 7 VF $1,100.00 $7,700.00
1308 Rigid Board Insulation, 4" Thick 400 LF $22.00 $8,800.00
SUBTOTAL $40,100.00
1401 SS Manhole Rim & Cover Adjustment 4 EA $500.00 $2,000.00
1402 Main - 36" dia. SDR35 PVC Pipe 950 LF $310.00 $294,500.00
1403 Manhole - 60" (Standard 5' Barrel Section)4 EA $8,000.00 $32,000.00
1404 Manhole - Extra Vertical Feet 28 VF $600.00 $16,800.00
SUBTOTAL $345,300.00
1501 Storm Sewer Pipe - 12" PVC A-2000 250 LF $61.25 $15,312.50
1502 Storm Sewer Pipe - 15" PVC A-2000 200 LF $64.50 $12,900.00
1503 Storm Sewer Pipe - 18" PVC A-2000 1000 LF $68.00 $68,000.00
1504 Storm Sewer Pipe - 24" PVC A-2000 100 LF $70.00 $7,000.00
1505 Pipe Existing Ditch ~48" Class 5 RCP 950 LF $250.00 $237,500.00
1506 48" Storm Drain Manhole w/ Solid Storm Drain Manhole Cover 4 EA $4,333.33 $17,333.33
1507 48" Storm Drain Manhole and Combination Inlet 12 EA $4,500.00 $54,000.00
1508 Detention Pond Outlet Structure 1 EA $7,000.00 $7,000.00
1509 Detention Pond 1 LS $35,000.00 $35,000.00
SUBTOTAL $454,045.83
1601 Utility Culvert Crossing 12 EA $7,000.00 $84,000.00
1602 Reserved
SUBTOTAL $84,000.00
1701 4" SCH40 Irrigation Sleeve 32 EA $400.00 $12,800.00
1702 Mulching/Composting & Hydroseeding 12,181 SY $5.00 $60,907.32
1703 Reserved
SUBTOTAL $73,707.32
1801 Wetland Mitigation 1 LS $150,000.00 $150,000.00
1802 Reserved
SUBTOTAL $150,000.00
1901 Structural Pole Foundations 19.7 CY $1,200.00 $23,640.00
1902 Conduit, 2.0" PVC Trench 4,630.0 LF $12.00 $55,560.00
1903 Conduit, 4.0" PVC, Sleeve 50.0 LF $15.00 $750.00
1904 Conduit, 2.0" PVC, Push 600.0 LF $25.00 $15,000.00
1905 Pull Box, Composite Type 1 15.0 EA $515.00 $7,725.00
1906 Conductor, Copper, #8 AWG 11,120.0 LF $1.00 $11,120.00
1907 Conductor, Copper, #10 AWG, Lighting & Ground 8,700.0 LF $0.75 $6,525.00
1908 Light Std. 30' Mount (Type 10-A)28.0 EA $2,800.00 $78,400.00
1909 Luminaire, (type 3S 72w LED)28.0 EA $1,400.00 $39,200.00
1910 Single Type C - Power Supply 1.0 EA $3,500.00 $3,500.00
SUBTOTAL $241,420.00
Estimated Construction Total (Schedule 0 - III & V - IX ) $3,017,673.65
15% Contingency (Schedule 0 - III & V - IX ) $452,651.05
Construction Total + 15% Contingency (Schedule 0 - III & V - IX ) $3,470,324.70
2101 Engineering Design (7% of Construction + Contingency)1 LS $242,922.73 $242,922.73
2102 Construction Staking, Testing, & Inspection (7% of Construction + Contingency)1 LS $242,922.73 $242,922.73
2103 Bond Council & Administrative Fees (1% of Construction + Contingency)1 LS $34,703.25 $34,703.25
2104 Contribution to State Revolving Fund (5% of SID Total)1 LS $210,045.97 $210,045.97
SUBTOTAL $730,594.67
SID TOTAL = $4,200,919.37
SCHEDULE VII - LANDSCAPE IMPROVEMENTS
SCHEDULE VIII - ENVIRONMENTAL MITIGATION
* Schedule IV - Sanitary Sewer Improvements have not been included in the total construction costs as part of this SID. Funding for Schedule IV will come from
source other than SID.
SCHEDULE IX - LIGHTING IMPROVEMENTS
SCHEDULE X - ENGINEERING & ADMINISTRATIVE FEES
SCHEDULE III - WATER IMPROVEMENTS
SCHEDULE IV - SANITARY SEWER IMPROVEMENTS*
SCHEDULE V - STORM SEWER IMPROVEMENTS
SCHEDULE VI - DRY UTILITY IMPROVEMENTS
RESOLUTION 5208
RESOLUTION RELATING TO $4,001,000 SPECIAL IMPROVEMENT DISTRICT NO.
747 BOND, SERIES 2020; FIXING THE FORM AND DETAILS AND PROVIDING FOR
THE EXECUTION AND DELIVERY THEREOF AND SECURITY THEREFOR
BE IT RESOLVED by the City Commission (the “Commission”) of the City of
Bozeman, Montana (the “City”), as follows:
Section 1
Recitals. It is hereby found, determined and declared as follows:
1.01. Resolution of Intention. By Resolution No. 4954, duly adopted by the Commission
on January 14, 2019 (the “Resolution of Intention”), this Commission declared its intention to
create Special Improvement District No. 747 (the “District”), for the purpose of financing a portion
of the costs of street improvements to benefit certain property in the City and included within the
District, consisting of the design, engineering, reconstruction, and construction of street, sidewalk,
curb, gutter, stormwater, and related improvements, including road demolition and excavation,
road, curb, gutter, and sidewalk improvements, fire hydrants, manholes, pipes, detention ponds,
culverts, landscaping, environmental mitigation, and lighting, on, under, or adjacent to a portion
of Manley Road (collectively, the “Improvements”), and paying costs incidental thereto, including
costs associated with the sale and the security of a special improvement district bond drawn on the
District (the “Bond”), the creation and administration of the District, and the funding of a deposit
to the City’s Special Improvement District Revolving Fund (the “Revolving Fund”). The
Resolution of Intention designated the number of the District, described the boundaries thereof
and stated the general character of the Improvements and an approximate estimate of the costs
thereof, in accordance with the provisions of Montana Code Annotated, Title 7, Chapter 12, Parts
41 and 42, as amended (the “Act”). By the Resolution of Intention, this Commission also declared
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its intention to cause the cost and expense of making the Improvements specially benefiting the
District to be assessed against the properties included within the boundaries thereof in accordance
with one or more methods of assessment authorized in Sections 7-12-4161 to 7-12-4165 of the Act
and as set forth in the Resolution of Intention.
In the Resolution of Intention, this Commission stated its intention to issue the Bond drawn
against the District to pay a portion of the costs of the Improvements. This Commission further
found that it is in the public interest, and in the best interest of the City and the District, to secure
payment of principal of and interest on the Bond by the Revolving Fund, on the basis of factors
required to be considered under Section 7-12-4225 of the Act. Those findings are hereby ratified
and confirmed.
1.02. Notice. Notice of the passage of the Resolution of Intention was given by two
publications, with at least six days between publications, in the Bozeman Chronicle, a daily
newspaper of general circulation published within the City. Notice of the passage of the Resolution
of Intention was also mailed the same day the notice was first published to all persons, firms or
corporations or the agents thereof having real property within the District, listed in their names
upon the last completed assessment roll for State, county and school district taxes, at their last
known addresses. The notice described the general character of the Improvements, stated the
estimated cost of the Improvements and the method or methods of assessment of such costs against
properties in the District, specified the time when and the place where the Commission would hear
and pass upon all protests made against the making of the Improvements or the creation or
extension of the District, and referred to the Resolution of Intention as being on file in the office
of the City Clerk for a description of the boundaries of the District, all in accordance with the
provisions of the Resolution of Intention, and included a statement that, subject to the limitations
of Section 7-12-4222 of the Act, the general fund of the City may be used to provide loans to the
Revolving Fund or a general tax levy may be imposed on all taxable property in the City to meet
the financial requirements of the Revolving Fund.
1.03. Creation of District. At the time and place specified in the notice hereinabove
described, this Commission met to hear, consider and pass upon all protests made against the
making of the Improvements and the creation of the District, and, after consideration thereof, it
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was determined and declared that insufficient protests against the creation or extension of the
District or the proposed work had been filed in the time and manner provided by law by the owners
of the property to be assessed for the Improvements in the District, and this Commission did
therefore by Resolution No. 4955, adopted on February 11, 2019, create Special Improvement
District No. 747, order the proposed Improvements in accordance with the Resolution of Intention,
and confirm the findings it made with respect to the pledge of the Revolving Fund in the Resolution
of Intention.
1.04. Construction Contracts. Plans, specifications, maps, profiles and surveys for
construction of the Improvements were prepared by the engineers acting for the City or by City
engineers, and were thereupon examined and approved by this Commission. Advertisements for
bids for construction of the Improvements were published in the official newspaper of the City in
accordance with the provisions of Montana Code Annotated, Section 7-12-4141, after which the
bids theretofore received were opened and examined. After referring the bids to the engineers for
the City it was determined that the lowest regular proposal for the furnishing of all work and
materials required for constructing the Improvements in accordance with the approved plans and
specifications was the following:
SID No. 747:
Work Bidder Contract Price
Design, engineering, reconstruction, and
construction of street, sidewalk, curb, gutter,
stormwater, and related improvements
Knife River $3,274,177.00
Contracts for the construction of the Improvements were therefore awarded to said bidder,
subject to the right of owners of property liable to be assessed for the costs thereof to elect to take
the work and enter into written contracts therefor in the manner provided by Montana Code
Annotated, Section 7-12-4147, whereupon the City and the successful bidder entered into written
contracts for construction of the Improvements upon the bidder having executed and filed bonds
satisfactory to this Commission and in the form and manner provided by Montana Code Annotated,
Title 18, Chapter 2, Part 2, as amended.
1.05. Costs. Following prepayments by property owners in the District, it is currently
estimated that the costs and expenses connected with and incidental to the formation of the District
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to be paid from the proceeds of the Bond, including costs of preparation of plans, specifications,
maps, profiles, engineering superintendence and inspection, preparation of assessment rolls,
expenses of making the assessments, the cost of work and materials under the construction
contracts and all other costs and expenses, including the deposit of proceeds in the Revolving
Fund, are $4,001,000, as shown in the table below:
Construction and contingency $ 3,274,177.00
Engineering design 242,922.73
Construction engineering 242,922.73
Bond counsel 40,000.00
Revolving Fund deposit (5%) 200,050.00
Rounding (bond account) 927.54
Total $ 4,001,000.00
The amount of $4,001,000, together with interest thereon, will be levied and assessed upon
the assessable real property within the District on the bases described in the Resolution of
Intention. This Commission has jurisdiction and is required by law to levy and assess such
amounts, to collect such special assessments and credit the same to the special improvement
district funds created for the District, which funds are to be maintained on the official books and
records of the City separate from all other City funds, within the 2020 Special Improvement
District No. 747 Fund (as further described in Section 3.01 hereof, the “District Fund”) for the
payment of principal and interest when due on the Bond herein authorized.
1.06. Sale and Issuance of Bond. The City has received a proposal from Sterling National
Bank (the “Purchaser”) for the purchase of the Bond. For the purpose of financing a portion of
the costs and expenses of making the Improvements and funding a deposit to the Revolving Fund
(as hereinafter defined), which are to be assessed against the property within the District as
provided in the Resolution of Intention, this Commission hereby determines that it is in the best
interests of the City to sell the Bond in a private negotiated sale to the Purchaser, at a purchase
price of $4,001,000 (representing the stated principal amount of the Bond), at the rate of interest
set forth in Section 2.01 hereof, and upon the further terms set forth in this Resolution, in
accordance with the provisions of Section 7-12-4204(2) of the Act.
1.07. Recitals. All acts, conditions and things required by the Constitution and laws of the
State of Montana, including the Act, and the home rule charter of the City, in order to make the
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Bond a valid and binding special obligation in accordance with its terms and in accordance with
the terms of this Resolution have been done, do exist, have happened and have been performed in
regular and due form, time and manner as so required.
Section 2
The Bond.
2.01. Title, Principal Amount, Interest Rate and Stated Maturity. For the purpose of paying
a portion of the costs and expenses of making the Improvements, funding a deposit to the
Revolving Fund and paying costs of issuing the Bond, and in anticipation of the collection of
special assessments to be levied therefor, and in accordance with the proposal described in Section
1.06, the City shall forthwith issue and deliver to the Purchaser the Bond, denominated “Special
Improvement District No. 747 Bond, Series 2020,” payable solely from the District Fund. The
Bond shall be issued in the principal amount of $4,001,000, and shall mature, subject to redemption
as hereinafter provided, on July 1, 2040. The Bond shall bear interest on the outstanding principal
amount from the date of original issue, or from such later date to which interest has been paid or
duly provided for, until paid or discharged at the rate of 3.175% per annum. The principal of and
interest on the Bond shall be payable in the amounts and on the respective dates reflected in the
Debt Service Schedule attached as Schedule 1 to the Bond (which amounts, as to interest payments,
are subject to recalculation as described herein if not timely paid). Interest is calculated on the
basis of a 360-day year comprised of 12 30-day months.
2.02. Interest Payment Dates. Interest on the Bond shall be payable on each January 1 and
July 1 , commencing January 1, 2021, to the owners of record thereof as such appear on the bond
register at the close of business on the twentieth day of the immediately preceding month, whether
or not such day is a business day.
2.03. Method of Payment. The Bond shall be issued only in fully registered form. The
interest on and principal installments of the Bond shall be payable by check or draft drawn on the
Registrar, or by wire transfer upon request of the registered owner of the Bond; provided that the
final installment of principal (whether at maturity or earlier redemption) shall be paid by the
Registrar only upon presentation and surrender of the Bond to the Registrar.
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2.04. Registration. The City hereby appoints the City Clerk to act as bond registrar,
transfer agent and paying agent (the “Registrar”). The City reserves the right to appoint a bank,
trust company or fiscal company as successor bond registrar, transfer agent or paying agent, as
authorized by the Model Public Obligations Registration Act of Montana (the “Registration Act”),
but the City agrees to pay the reasonable and customary charges of the Registrar for the services
performed. This Section 2.04 shall establish a system of registration for the Bond as defined by
the Registration Act. The effect of registration and the rights and duties of the City and the
Registrar with respect thereto shall be as follows:
(a) Bond Register. The Registrar shall keep at its principal office a bond register
in which the Registrar shall provide for the registration of ownership of the Bond and the
registration of transfers and exchanges of the Bond entitled to be registered, transferred or
exchanged.
(b) Transfer. Upon surrender to the Registrar for transfer of the Bond duly
endorsed by the registered owner thereof or accompanied by a written instrument of
transfer, in form satisfactory to the Registrar, duly executed by the registered owner thereof
or by an attorney duly authorized by the registered owner in writing and guaranteed by an
“eligible guarantor institution” meeting the requirements of the Registrar, the Registrar
shall authenticate and deliver, in the name of the designated transferee or transferees, a new
Bond of a like aggregate principal amount and like payments of principal installments, as
requested by the transferor; provided, however, that the Bond shall be transferred only to
(i) an affiliate of the Purchaser or (ii) a bank, insurance company or other financial
institution, or an affiliate thereof. Nothing herein shall limit the registered owner of the
Bond or its assignees from selling or assigning participation interests in the Bond to one or
more entities listed in (i) or (ii) above; provided that any transfer, sale or assignment shall
be done in accordance with applicable securities laws and regulations. The Registrar may,
however, close the books for registration of any transfer of the Bond or portion thereof
selected or called for redemption.
(c) Exchange. Whenever the Bond is surrendered by the registered owner for
exchange, the Registrar shall authenticate and deliver a new Bond of a like aggregate
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principal amount, interest rate and principal installments, as requested by the registered
owner or the owner’s attorney duly authorized in writing.
(d) Cancellation. The Bond surrendered upon any transfer or exchange shall be
promptly canceled by the Registrar and thereafter disposed of as directed by the City.
(e) Improper or Unauthorized Transfer. When the Bond is presented to the
Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that
the endorsement on the Bond or separate instrument of transfer is valid and genuine and
that the requested transfer is legally authorized. The Registrar shall incur no liability for
the refusal, in good faith, to make transfers which it, in its judgment, deems improper or
unauthorized.
(f) Persons Deemed Owners. The City and the Registrar may treat the person in
whose name the Bond is at any time registered on the bond register as the absolute owner
of the Bond, whether the Bond shall be overdue or not, for the purpose of receiving
payment of, or on account of, the principal of and interest on the Bond and for all other
purposes, and all such payments so made to any such registered owner or upon the owner’s
order shall be valid and effectual to satisfy and discharge the liability of the City upon the
Bond to the extent of the sum or sums so paid.
(g) Taxes, Fees and Charges. For every transfer of the Bond or exchange of the
Bond (except for an exchange upon the partial redemption of the Bond), the Registrar may
impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax,
fee or other governmental charge required to be paid with respect to such transfer or
exchange.
(h) Mutilated, Lost, Stolen or Destroyed Bond. In case the Bond shall become
mutilated or be destroyed, stolen or lost, the Registrar shall deliver a new Bond of like
amount, number, principal installments and tenor in exchange and substitution for and upon
cancellation of the mutilated Bond or in lieu of and in substitution for the Bond destroyed,
stolen or lost, upon the payment of the reasonable expenses and charges of the Registrar in
connection therewith; and, in the case that the Bond is destroyed, stolen or lost, upon filing
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with the Registrar of evidence satisfactory to it that the Bond was destroyed, stolen or lost,
and of the ownership thereof, and upon furnishing to the Registrar an appropriate bond or
indemnity in form, substance and amount satisfactory to it, in which both the City and the
Registrar shall be named as obligees. The Bond so surrendered to the Registrar shall be
canceled by it and evidence of such cancellation shall be given to the City. If the mutilated,
destroyed, stolen or lost Bond has already matured or the Bond has been called for
redemption in accordance with its terms, it shall not be necessary to issue a new Bond prior
to payment.
2.05. Redemption.
(a) Mandatory Redemption. If on any interest payment date there will be a balance in the
District Fund after payment of the principal and interest due on the Bond drawn against it, either
from the prepayment of special assessments levied in the District or from the transfer of surplus
money from the Construction Account to the Principal Account as provided in Section 3.02 or
otherwise, the City Finance Director shall call for redemption on the interest payment date
principal installments of the Bond in an amount which, together with the interest thereon to the
interest payment date, will equal the amount of such funds on deposit in the District Fund on that
date. The redemption price shall equal the amount of the principal installments of the Bond to be
redeemed plus interest accrued to the date of redemption, without premium.
(b) Optional Redemption. The Bond is subject to redemption at the option of the City, in
whole but not in part, on any payment date, from sources of funds available therefor other than
those described in subsection (a) of this Section 2.05. Optional redemption described in this
Section 2.05(b) shall be at a redemption price stated below as a percentage of the then-outstanding
principal amount of the Bond, together with interest on the outstanding principal amount to the
redemption date:
Year Percentage
January 1, 2021 through July 1, 2027 102%
January 1, 2028 through July 1, 2032 101%
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January 1, 2033 and thereafter 100%
(c) Notice and Effect of Redemption. The date of redemption and the amount of principal
installments of the Bond to be redeemed shall be fixed by the Registrar and the Registrar shall give
notice, by first class mail, postage prepaid, or by other means required by the securities depository,
to the owner or owners of the Bond at their addresses appearing on the bond register, of the amount
of principal installments to be redeemed and the date on which payment will be made, which date
shall be not less than 30 days after the date of mailing notice. On the date so fixed interest on the
principal installments of the Bond so redeemed shall cease to accrue. If the Bond is prepaid in
part, the Purchaser or then-registered owner of the Bond will reamortize the principal remaining
upon redemption and prepayment at the interest rate over the then-remaining term in equal or
substantially equal semiannual payments of principal and interest. Upon partial redemption and
prepayment there shall be no need to exchange a new Bond for the unredeemed portion of the
existing Bond; provided that the amortization schedule attached as Schedule 1 to the form of the
Bond shall be replaced by an amortization schedule reflecting the reamortization of the principal
then outstanding in the manner described above.
2.06. Form. The Bond shall be drawn in substantially the form set forth in Exhibit A
hereto, and by this reference made a part hereof, with such modifications as are permitted by the
Act.
2.07. Execution, Registration and Delivery. The Bond shall be prepared under the
direction of the City Clerk and shall be executed on behalf of the City by the signatures of the
Mayor and the City Clerk; provided that the signatures and the corporate seal may be printed,
engraved or lithographed facsimiles of the originals. The seal of the City need not be impressed
or imprinted on the Bond. In case any officer whose signature or a facsimile of whose signature
shall appear on the Bond shall cease to be such officer before the delivery of the Bond, such
signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if such
officer had remained in office until delivery. Notwithstanding such execution, the Bond shall not
be valid or obligatory for any purpose or entitled to any security or benefit under this resolution
unless a certificate of authentication and registration on the Bond has been duly executed by the
manual signature of an authorized representative of the Registrar. The executed certificate of
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authentication and registration on the Bond shall be conclusive evidence that it has been
authenticated and delivered under this resolution. When the Bond has been so executed,
authenticated and registered, it shall be delivered by the Registrar to the Purchaser upon payment
of the purchase price.
2.08. Application of Proceeds. From the proceeds of the Bond the City Finance Director
shall credit forthwith $200,050 for the District to the Revolving Fund, as required by Section 7-
12-4169(2) of the Act, and the balance of such proceeds to the Construction Account in the District
Fund, to be used solely for the purposes described in Section 3.02. The Purchaser shall not be
obligated to see to the application of the purchase price.
Section 3
District Fund; Assessments.
3.01. District Fund. There is hereby created and established the fund designated as the
“2020 Special Improvement District No. 747 Fund” (the “District Fund”), which shall be
maintained by the City Finance Director on the books and records of the City separate and apart
from all other funds of the City. Within the District Fund there shall be maintained three separate
accounts, designated as the “Construction Account,” “Principal Account,” and “Interest Account,”
respectively.
3.02. Construction Account. There shall be credited to the Construction Account in the
District Fund the proceeds of the sale of the Bond remaining after the required deposits to the
Revolving Fund. Any earnings on investment of money in the Construction Account shall be
retained therein. All costs and expenses of constructing the Improvements in and for the benefit
of the District and costs of issuance of the Bond shall be paid from time to time as incurred or
reimbursed to the City from the Construction Account in accordance with the provisions of
applicable law, and money in the Construction Account shall be used for no other purpose;
provided that upon completion of the Improvements and after all claims and expenses with respect
to the Improvements have been fully paid and satisfied, any money remaining in the Construction
Account shall be transferred to the Principal Account and used to redeem principal installments of
the Bond as provided in Section 3.03.
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3.03. Principal Account and Interest Account. Money in the Principal Account and the
Interest Account shall be used only for payment of the principal of and interest on the Bond as
such payments become due or to redeem principal installments of the Bond.
Upon collection of special assessments to be levied with respect to the Improvements in
the District due on November 30 and May 31 of each year, the City Finance Director shall credit
to the Interest Account so much of said special assessments as is collected as interest payment and
the balance thereof to the Principal Account. Any installment of any special assessment paid prior
to its due date with interest accrued thereon to the next succeeding interest payment date shall be
credited with respect to principal and interest payments in the same manner as other assessments
are credited to the District Fund. All money in the Interest Account and the Principal Account
shall be used first to pay interest due, and any remaining money shall be used to pay the principal
amounts of the Bond then due and, if money is available, to redeem principal installments of the
Bond in accordance with Section 2.05; provided that any money transferred to the Principal
Account from the Construction Account pursuant to Section 3.02 shall be applied to redeem
principal installments of the Bond to the extent possible on the next interest payment date for which
notice of redemption has been properly be given pursuant to Section 2.05(c).
3.04. Loans from Revolving Fund. The Commission shall annually or more often if
necessary issue an order authorizing a loan or advance from the Revolving Fund to the District
Fund in an amount sufficient to make good any deficiency then existing in the Interest Account
and issue an order authorizing a loan or advance from the Revolving Fund to the District Fund in
an amount sufficient to make good any deficiency then existing in the Principal Account, in each
case to the extent that money is available in the Revolving Fund. A deficiency shall be deemed to
exist in the Principal Account or Interest Account if the money on deposit therein on any December
15 or June 15 (excluding amounts in the Principal Account representing prepaid special
assessments) is less than the amount necessary to pay the principal installment of the Bond due
(other than upon redemption), and interest on the Bond payable, on the next succeeding interest
payment date.
Pursuant to Chapter 2, Article 6, Division 6 of the City Code, the City has undertaken and
agreed to provide funds for the Revolving Fund by levying such tax or making such loan from the
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General Fund as authorized by Montana Code Annotated, Section 7-12-4222. In the event that the
balance on hand in the Revolving Fund fifteen days prior to any date when interest is due on special
improvement district bonds or warrants of the City is not sufficient to make good all deficiencies
then existing in the special improvement district funds for which the City has covenanted to make
loans from the Revolving Fund, the balance on hand in the Revolving Fund shall be allocated to
the funds of the special improvement districts in which such deficiencies then exist in proportion
to the amounts of the deficiencies on the respective dates of receipt of such money, until all interest
accrued on such special improvement district bonds or warrants of the City has been paid. On any
date when all accrued interest on special improvement district bonds and warrants of the City
payable from funds for which the City has covenanted to make loans from the Revolving Fund has
been paid, any balance remaining in the Revolving Fund shall be lent or advanced to the special
improvement district funds for payment and redemption of bonds to the extent the special
improvement district funds are deficient for such purpose, and, if money in the Revolving Fund is
insufficient therefor, pro rata, in an amount proportionate to the amount of such deficiency.
The City hereby determines, covenants and agrees to levy the property tax described in the
immediately preceding paragraph to provide funds for the Revolving Fund so long as the Bond is
outstanding to the extent required under the provisions of this Resolution and the Act, even though
such property tax levy may, under applicable law or provisions of the home rule charter of the
City, require that property tax levies of the City for other purposes be reduced correspondingly.
Section 4
Covenants. The City covenants and agrees with the owners from time to time of the Bond that
until all the principal amount of the Bond and interest thereon are fully paid:
4.01. Compliance with Resolution. The City will hold the District Fund and the Revolving
Fund as trust funds, separate and apart from all of its other funds, and the City, its officers and
agents, will comply with all covenants and agreements contained in this Resolution. The
provisions hereinabove made with respect to the District Fund and the Revolving Fund are in
accordance with the undertaking and agreement of the City made in connection with the sale of
the Bond as set forth in Section 1.06.
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4.02. Construction of Improvements. The City will do all acts and things necessary to
enforce the provisions of the construction contracts and Bond referred to in Section 1.04 and to
ensure the completion of the Improvements for the benefit of the District in accordance with the
plans and specifications and within the time therein provided, and will pay all costs thereof
promptly as incurred and allowed, out of the Construction Account and within the amount of the
proceeds of the Bond appropriated thereto, amounts contributed by the City therefor and
prepayments by property owners in the District. All awards of contracts have complied or will
comply with the applicable bid and award statutes.
4.03. Levy of Assessments. The City will do all acts and things necessary for the final and
valid levy of special assessments upon all assessable real property within the boundaries of the
District benefited by the Improvements in accordance with the Constitution and laws of the State
of Montana and the Constitution of the United States in an aggregate principal amount not less
than $4,001,000. Such special assessments shall be levied on the bases prescribed in the
Resolution of Intention, and shall be payable in substantially equal semiannual installments of
principal and interest over a period of 20 years, at an annual rate equal to the sum of: (i) the average
annual interest rate borne by the then-outstanding Bond, plus (ii) one-half of one percent (0.50%)
per annum. The assessments to be levied will be payable on the 30th day of November in each of
the years 2020 through 2039, and on the 31st day of May in the years 2021 through 2040, inclusive,
if not theretofore paid, and shall become delinquent on such date unless paid in full. The first
partial payment of each assessment shall include interest on the entire assessment from the date of
original registration of the Bond to January 1, 2021. The assessments shall constitute a lien upon
and against the property against which they are made and levied, which lien may be extinguished
only by payment of the assessment with all penalties, cost and interest as provided in Section 7-
12-4191 of the Act. No tax deed issued with respect to any lot or parcel of land shall operate as
payment of any installment of the assessment thereon which is payable after the execution of such
deed, and any tax deed so issued shall convey title subject only to the lien of said future
installments, as provided in Montana Code Annotated, Section 15-18-214.
4.04. Reassessment. If at any time and for whatever reason any special assessment or tax
herein agreed to be levied is held invalid, the City and this Commission, its officers and employees,
will take all steps necessary to correct the same and to reassess and re-levy the same, including the
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ordering of work, with the same force and effect as if made at the time provided by law, ordinance
or resolution relating thereto, and will reassess and re-levy the same with the same force and effect
as an original levy thereof, as authorized in Section 7-12-4186 of the Act. Any special assessment,
or reassessment or re-levy shall, so far as is practicable, be levied and collected as it would have
been if the first levy had been enforced including the levy and collection of any interest accrued
on the first levy.
If proceeds of the Bond, including investment income thereon, are applied to the
redemption of the Bond, as provided in Sections 7-12-4205 and 7-12-4206 of the Act, or if
refunding bonds are issued and the principal amount of the outstanding Bond is decreased or
increased, the City will reduce or increase, respectively, the assessments levied in the District and
then outstanding pro rata by the principal amount of such prepayment or the increment above or
below the outstanding principal amount of Bond represented by the refunding Bond. The City and
this Commission, its officers and employees will reassess and re-levy such assessments, with the
same effect as an original levy, in such reduced or increased amounts in accordance with the
provisions of Sections 7-12-4176 through 7-12-4178 of the Act.
4.05. Absence of Litigation. There is now no litigation pending or, to the best knowledge
of the City, threatened questioning the validity or regularity of the creation of the District, the
contracts for construction of the Improvements or the undertaking and agreement of the City to
levy special assessments therefor and to make good any deficiency in the collection thereof
through the levy of taxes for and the making of advances from the Revolving Fund, or the right
and power of the City to issue the Bond or in any manner questioning the existence of any condition
precedent to the exercise of the City’s powers in these matters. If any such litigation should be
initiated or threatened, the City will forthwith notify in writing the Purchaser, and will furnish the
Purchaser a copy of all documents, including pleadings, in connection with such litigation.
4.06. Waiver of Penalty and Interest. The City covenants not to waive the payment of
penalty or interest on delinquent assessments levied on property in the District for costs of the
Improvements, unless the City determines, by resolution of the Commission, that such waiver is
in the best interest of the owners of the outstanding Bond.
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4.07 Reporting Requirements.
(a) While the Bond is outstanding, the City shall submit to the registered owner of the
Bond (a) current audited financial statements in reasonable detail, with supporting schedules (the
“Audit”) as soon as practicable after the City’s acceptance thereof and in any case within 360 days
after the end of each fiscal year, which may be in electronic .PDF format. In the event the Audit
is filed on the MSRB’s “EMMA” website, to satisfy this requirement the City may email a link to
the posted Audit to the registered owner of the Bond within such 360-day period. So long as the
Lender is the registered owner of the Bond, the electronic audit or EMMA link may be sent to the
following email address (or such other address as the Lender supplies to the City in writing):
Public_Finance_Servicing@snbcloud.onmicrosoft.com, and (b) at the request of the registered
owner of the Bond, the City’s annual budget as submitted or approved. The City further agrees
that upon 10 days prior written notice, it will permit the registered owner of the Bond or its agents
and representatives to inspect the City’s books and records and make extracts therefrom at its own
expense during regular business hours and in a manner which will not disrupt the normal business
routine of the City. The City shall furnish to the registered owner of the Bond such other financial
information as it may reasonably request, so long as publicly available. In the event that the Audit
is not available within 360 days of fiscal year end, the City will furnish unaudited financial
statements to the registered owner of the Bond in the manner described in this paragraph within
such period, and will then supply the Audit within 10 business days following the availability
thereof.
(b) In connection with the City’s compliance with any continuing disclosure
undertakings (each, a “Continuing Disclosure Agreement”) entered into by the City on and after
February 27, 2019, pursuant to SEC Rule 15c2-12 promulgated pursuant to the Securities and
Exchange Act of 1934, as amended (the “Rule”), the Purchaser acknowledges that the City may
be required to file with the Municipal Securities Rulemaking Board’s Electronic Municipal Market
Access system, or its successor (“EMMA”), notice that the City has incurred obligations hereunder
and notice of certain subsequent events reflecting financial difficulties in connection with the
Bond. The City agrees that it shall not file or submit, or permit to be filed or submitted, with
EMMA any documentation that includes the following unredacted sensitive or confidential
information about the Purchaser or its affiliates: address and account information of the Purchaser
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or its affiliate, e-mail addresses, telephone numbers, fax numbers, names and signatures of officers,
employees and signatories of the Purchaser or its affiliates, unless otherwise required for
compliance with the Rule or otherwise required by law. The City acknowledges that the Purchaser
is not responsible for the City’s compliance or noncompliance with the Rule or any Continuing
Disclosure Agreement.
Section 5.
Tax Matters.
5.01. Use of Improvements. The Improvements will be owned and operated by the City
and available for use by members of the general public on a substantially equal basis. The City
shall not enter into any lease, use or other agreement with any non-governmental person relating
to the use of the Improvements or security for the payment of the Bond which might cause the
Bond to be considered a “private activity bond” or a “private loan bond” within the meaning of
Section 141 of the Internal Revenue Code of 1986, as amended (the “Code”).
5.02. General Covenant. The City covenants and agrees with the owners from time to time
of the Bond that it will not take or permit to be taken by any of its officers, employees or agents
any action which would cause the interest on the Bond to become includable in gross income for
federal income tax purposes under the Code and applicable Treasury Regulations (the
“Regulations”), and covenants to take any and all actions within its powers to ensure that the
interest on the Bond will not become includable in gross income for federal income tax purposes
under the Code and the Regulations.
5.03. Arbitrage Certification. The City Finance Director, being among the officers of the
City charged with the responsibility for issuing the Bond pursuant to this Resolution, is authorized
and directed to execute and deliver to the Purchaser a certificate in accordance with the provisions
of Section 148 of the Code, and Section 1.148-2(b) of the Regulations, stating that on the basis of
facts, estimates and circumstances in existence on the date of issue and delivery of the Bond, it is
reasonably expected that the proceeds of the Bond will be used in a manner that would not cause
the Bond to be an “arbitrage bond” within the meaning of Section 148 of the Code and the
Regulations.
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5.04. Arbitrage Rebate. The City acknowledges that the Bond is subject to the rebate
requirements of Section 148(f) of the Code. The City covenants and agrees to retain such records,
make such determinations, file such reports and documents and pay such amounts at such times as
are required under said Section 148(f) and applicable Regulations to preserve the exclusion of
interest on the Bond from gross income for federal income tax purposes, unless or to the extent
that the Bond qualifies for the exception from the rebate requirement under Section 148(f)(4)(B)
of the Code and no “gross proceeds” of the Bond (other than amounts constituting a “bona fide
debt service fund”) arise during or after the expenditure of the original proceeds thereof. In
furtherance of the foregoing, the City Finance Director is hereby authorized and directed to execute
a rebate certificate, substantially in the form to be prepared by Bond Counsel, and the City hereby
covenants and agrees to observe and perform the covenants and agreements contained therein,
unless amended or terminated in accordance with the provisions thereof.
5.05. Information Reporting. The City shall file with the Secretary of the Treasury, not
later than November 15, 2020, a statement concerning the Bond containing the information
required by Section 149(e) of the Code.
Section 6
Authentication of Transcript. The officers of the City are hereby authorized and directed to
furnish to the Purchaser and to Bond Counsel certified copies of all proceedings relating to the
issuance of the Bond and such other certificates and affidavits as may be required to show the
right, power and authority of the City to issue the Bond, and all statements contained in and shown
by such instruments, including any heretofore furnished, shall constitute representations of the
City as to the truth of the statements purported to be shown thereby.
Section 7
Discharge.
7.01. General. When the liability of the City on the Bond issued under and secured by this
Resolution has been discharged as provided in this Section 7, all pledges, covenants and other
rights granted by this Resolution to the owners of such obligations shall cease.
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7.02. Payment . The City may discharge its liability with reference to the Bond or
installment of interest thereon which is due on any date by depositing with the Registrar on or
before that date funds sufficient, or, if a City officer is the Registrar, mailing to the registered
owner of the Bond a check or draft in a sum sufficient and providing proceeds available, for the
payment thereof in full; or if the Bond or installment of interest thereon shall not be paid when
due, the City may nevertheless discharge its liability with reference thereto by depositing with the
Registrar funds sufficient, or, if a City officer is the Registrar, by mailing to the registered owner
thereof a check or draft in a sum sufficient and providing proceeds available, for the payment
thereof in full with interest accrued to the date of such deposit or mailing.
7.03. Prepayment. The City may also discharge its obligations with respect to the Bond
called for redemption on any interest payment date, by on or before that date depositing with the
Registrar funds sufficient, or, if a City officer is the Registrar, mailing to the registered owner of
the Bond a check or a draft in a sum sufficient and providing proceeds available, for the payment
of the principal installments to be redeemed and interest accrued thereon to the date of redemption;
provided that notice of such redemption has been duly given as provided herein or irrevocably
provided for.
7.04. Irrevocable Deposits. If an officer of the City is the Registrar, any deposit made
under this Section 7 with the Registrar shall be irrevocable and held for the benefit of the owners
of the Bond.
Section 8
Repeals and Effective Date.
8.01. Repeal. All provisions of other resolutions and other actions and proceedings of the
City and this Commission that are in any way inconsistent with the terms and provisions of this
Resolution are repealed, amended and rescinded to the full extent necessary to give full force and
effect to the provisions of this Resolution.
8.02. Effective Date. This Resolution shall take effect immediately upon its passage and
adoption by this Commission.
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PASSED, ADOPTED, AND APPROVED by the City Commission of the City of
Bozeman, Montana, this 11th day of August, 2020.
___________________________________
CHRIS MEHL
Mayor
ATTEST:
___________________________________
MICHAEL MAAS
City Clerk
APPROVED AS TO FORM:
___________________________________
GREG SULLIVAN
City Attorney
(SEAL)
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CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE
I, the undersigned, being the duly qualified and acting recording officer of the City of
Bozeman, Montana (the “City”), hereby certify that the attached resolution is a true copy of a
Resolution No. 5208 entitled: “RESOLUTION RELATING TO $4,001,000 SPECIAL
IMPROVEMENT DISTRICT NO. 747 BOND, SERIES 2020; FIXING THE FORM AND
DETAILS AND PROVIDING FOR THE EXECUTION AND DELIVERY THEREOF
AND SECURITY THEREFOR” (the “Resolution”), on file in the original records of the City
in my legal custody; that the Resolution was duly adopted by the City Commission of the City at
a regular meeting on August 11, 2020, and that the meeting was duly held by the City
Commission and was attended throughout by a quorum, pursuant to call and notice of such
meeting given as required by law; and that the Resolution has not as of the date hereof been
amended or repealed.
I further certify that, upon vote being taken on the Resolution at said meeting, the
following Commission Members voted in favor thereof: Mehl, Andrus, Pomeroy, Cunningham,
& Wallner; voted against the same: none; abstained from voting thereon:
none; or were absent: none.
WITNESS my hand and seal officially this 11th day of August, 2020.
(SEAL)
MICHAEL MAAS
City Clerk
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EXHIBIT A
UNITED STATES OF AMERICA
STATE OF MONTANA
YELLOWSTONE COUNTY
CITY OF BOZEMAN
SPECIAL IMPROVEMENT DISTRICT NO. 747 BOND, SERIES 2020
Interest at the rate per annum specified below,
payable on the 1st day of January and the 1st day of July
in each year, commencing January 1, 2021.
No. R-1 $4,001,000
Interest Rate Maturity Date
Date of
Original Issue
3.175% July 1, 2040 August 14, 2020
REGISTERED OWNER: STERLING NATIONAL BANK
PRINCIPAL AMOUNT: FOUR MILLION ONE THOUSAND DOLLARS
FOR VALUE RECEIVED, City of Bozeman, Montana (the “City”), will pay to the
registered owner identified above, or registered assigns, the total principal amount specified above,
together with interest thereon, in installments of principal and interest on each January 1 and July
1, which shall be in the years and in the amounts set forth on Schedule 1 hereto (which amounts,
as to interest payments, are subject to recalculation as described herein if not timely paid), solely
from the Principal Account and Interest Account in the District Fund, as authorized by Resolution
No. ___, adopted August 11, 2020 (the “Resolution”), all subject to the provisions hereinafter
described relating to the redemption of this Bond before maturity.
Unpaid principal installments of this Bond bear interest at the rate per annum specified
above from the date of original issue specified above, or from such later date to which interest
hereon has been paid or duly provided for, until the maturity date specified above or an earlier date
on which this Bond shall have been duly called for redemption by the City Finance Director.
Interest on this Bond is payable semiannually on each January 1 and July 1, commencing January
1, 2021, to the owner of record of this Bond appearing as such in the bond register as of the close
of business on the twentieth day (whether or not a business day) of the immediately preceding
month. This Bond represents all principal installments of the issue. The principal of and interest
on this Bond are payable in lawful money of the United States of America. Interest is calculated
on the basis of a 360-day year comprised of 12 30-day months. The City Clerk shall initially serve
as Registrar for this Bond. The interest on and principal installments of this Bond shall be payable
by check or draft drawn on the Registrar, or by wire transfer if requested by the registered owner;
provided that the final installment of principal (whether at maturity or earlier redemption) shall be
paid by the Registrar only upon presentation and surrender of this Bond to the Registrar.
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This Bond comprises an issue in the aggregate principal amount of $4,001,000 (the
“Bond”), and is issued pursuant to and in full conformity with the Constitution and laws of the
State of Montana thereunto enabling, including Montana Code Annotated, Title 7, Chapter 12,
Parts 41 and 42, as amended (the “Act”), and ordinances and resolutions duly adopted by the
governing body of the City, including the Resolution, for the purpose of financing the costs and
expenses of making certain local improvements (the “Improvements”) for the special benefit of
property located in Special Improvement District No. 747 (the “District”), funding a deposit to the
Special Improvement Revolving Fund (the “Revolving Fund”) and paying costs of issuance. The
Bond is issuable only as a single, fully registered bond.
This Bond is payable from the collection of a special tax or assessment levied upon all
assessable real property within the boundaries of the District benefited by the Improvements, in an
aggregate principal amount not less than $4,001,000, except as such amounts may be reduced or
increased in accordance with provisions of Montana law. Such assessments constitute a lien
against the property against which they are made and levied and are to be deposited into the 2019
Special Improvement District No. 747 Fund of the City (the “District Fund”). The Bond is not a
general obligation of the City.
The City has validly established the Revolving Fund to secure the payment of certain of its
special improvement and sidewalk, curb, gutter and alley approach bonds and warrants, including
the Bond. The City has also agreed, to the extent permitted by the Act, to issue orders annually,
or more often as necessary, authorizing loans or advances from the Revolving Fund to the District
Fund, in amounts sufficient to make good any deficiency in the District Fund to pay principal of
or interest on the Bond, to the extent money is available in the Revolving Fund, and to provide
funds for the Revolving Fund by annually levying such tax or making such loan from its general
fund, subject to the limitation that no such tax levy or loan may in any year cause the balance in
the Revolving Fund to exceed legal limits based on a percentage of the principal amount of the
City’s then outstanding special improvement and sidewalk, curb, gutter and alley approach bonds
and warrants secured thereby and subject to the durational limitations specified in the Act. The
City hereby determines, covenants and agrees to levy the property tax described above to provide
funds for the Revolving Fund so long as the Bond is outstanding to the extent required under the
provisions of the Resolution and the Act, even though such property tax levy may, under applicable
law or provisions of the home rule charter of the City, require that property tax levies of the City
for other purposes be reduced correspondingly.
The principal installments of this Bond are subject to mandatory redemption on any interest
payment date if, after paying all principal and interest then due on the Bond, there are funds to the
credit of the District Fund, either from the prepayment of assessments levied in the District or from
the transfer of surplus money from the Construction Account to the Principal Account, for the
redemption thereof.
In addition, this Bond is subject to redemption at the option of the City, in whole but not
in part, on any payment date, from sources of funds available therefor other than those described
in the paragraph above and in Section 2.05(a) of the Resolution. Such optional redemption shall
be at a redemption price stated below as a percentage of the then-outstanding principal amount of
the Bond, together with interest on the outstanding principal amount to the redemption date:
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Year Percentage
January 1, 2021 through July 1, 2027 102%
January 1, 2028 through July 1, 2032 101%
January 1, 2033 and thereafter 100%
The date of redemption and the amount of principal installments of the Bond to be
redeemed shall be fixed by the City Finance Director, who shall cause the Registrar to give notice
by first class mail, postage prepaid, to the owner or owners of the Bond at their addresses appearing
on the bond register, of the amount of principal installments of the Bond to be redeemed and the
date on which payment will be made, which date shall not be less than 30 days after the date of
mailing of notice. On the date so fixed interest on the principal installments of the Bond so
redeemed shall cease to accrue.
If the Bond is prepaid in part, the Purchaser or then-registered owner of the Bond will
reamortize the principal remaining upon redemption and prepayment at the interest rate over the
then-remaining term in equal or substantially equal semiannual payments of principal and interest.
Upon partial redemption and prepayment there shall be no need to exchange a new Bond for the
unredeemed portion of the existing Bond; provided that the amortization schedule attached as
Schedule 1 to the form of the Bond shall be replaced by an amortization schedule reflecting the
reamortization of the principal then outstanding in the manner described above.
As provided in the Resolution and subject to certain limitations set forth therein, this Bond
is transferable upon the books of the City at the principal office of the Registrar, by the registered
owner hereof in person or by his attorney duly authorized in writing upon surrender hereof together
with a written instrument of transfer satisfactory to the Registrar, duly executed by the registered
owner or his attorney. Upon such transfer, the City will cause a new Bond to be issued in the name
of the transferee or registered owner, of the same aggregate principal amount, bearing interest at
the same rate and with principal installments payable on the same dates, subject to reimbursement
for any tax, fee or governmental charge required to be paid with respect to such transfer or
exchange.
The City and the Registrar may deem and treat the person in whose name this Bond is
registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of
receiving payment and for all other purposes, and neither the City nor the Registrar shall be
affected by any notice to the contrary.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all things
required to be done precedent to the issuance of this Bond have been properly done, happened and
been performed in the manner prescribed by the laws of the State of Montana and the resolutions
and ordinances of the City of Bozeman, Montana, relating to the issuance hereof.
This Bond shall not be valid or become obligatory for any purpose or be entitled to any
security or benefit under the Resolution until the Certificate of Authentication hereon shall have
been executed by the Registrar by the manual signature of one of its authorized representatives.
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IN WITNESS WHEREOF, the City of Bozeman, Montana, by its City Commission, has
caused this Bond to be executed by the facsimile signatures of the Mayor and the City Clerk and
by the official seal of the City.
_____________________________
Mayor
_____________________________
City Clerk
(SEAL)
CERTIFICATE OF AUTHENTICATION
This Bond and the principal installments hereof have been registered as required by law
on the books of the City as of August 14, 2020.
CITY OF BOZEMAN, MONTANA,
as Registrar
By ______________________________________
City Clerk
DocuSign Envelope ID: 0B5EB8FF-2264-497D-BFE4-ECAECFB3AC70
A-5
The following abbreviations, when used in the inscription on the face of this Bond, shall
be construed as though they were written out in full according to applicable laws or regulations:
TEN COM — as tenants UTMA...........Custodian...............
in common (Cust) (Minor)
TEN ENT — as tenants
by the entireties
under Uniform Transfers to Minors
JT TEN — as joint tenants Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
with right of (State)
survivorship and
not as tenants in
common
Additional abbreviations may also be used.
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers
unto the within Bond and all rights and title thereunder,
and hereby irrevocably constitutes and appoints attorney to transfer the
within Bond on the books kept for registration thereof, with full power of substitution in the
premises.
Dated:
PLEASE INSERT SOCIAL SECURITY
OR OTHER IDENTIFYING NUMBER
OF ASSIGNEE: NOTICE: The signature to this assignment
must correspond with the name as it appears
upon the face of the within Bond in every
particular, without alteration, enlargement
/ / or any change whatsoever.
SIGNATURE GUARANTEED
Signature(s) must be guaranteed by an
“eligible guarantor institution” meeting
the requirements of the Registrar,
which requirements include membership
or participation in STAMP or such other
“signature guaranty program” as may be
determined by the Registrar in
addition to or in substitution for STAMP,
all in accordance with the Securities
Exchange Act of 1934, as amended.
DocuSign Envelope ID: 0B5EB8FF-2264-497D-BFE4-ECAECFB3AC70
A-6
SCHEDULE 1
DEBT SERVICE SCHEDULE
DocuSign Envelope ID: 0B5EB8FF-2264-497D-BFE4-ECAECFB3AC70
$4,001,000
Special Improvement District No. 747 Bond, Series 2020
City of Bozeman, Montana
OFFICERS’ CERTIFICATE
We, Chris Mehl and Michael Maas, hereby certify that we are the duly qualified and
acting Mayor and City Clerk, respectively, of the City of Bozeman, Montana (the “City”), and,
on behalf of the City, certify that:
1. True and correct facsimiles of the signatures of the Mayor and the City Clerk have
been affixed to $4,001,000 Special Improvement District No. 747 Bond, Series 2020, of the City,
dated, as originally issued, as of August 14, 2020 (the “Bond”). The Bond is payable on the
dates, bears interest at the rate and is substantially in the form prescribed by Resolution No.
5208, duly adopted by the City Commission of the City on August 11, 2020, entitled “Resolution
Relating to $4,001,000 Special Improvement District No. 747 Bond, Series 2020; Fixing the
Form and Details and Providing for the Execution and Delivery Thereof and Security Therefor”
(the “Resolution”). The Resolution is in full force and effect in the form it was adopted. The
Bond has been delivered to the City Clerk, as Registrar, for authentication and delivery to
Sterling National Bank (the “Purchaser”). The Bond is in fully registered form pursuant to a
system of registration established by the Resolution. Capitalized terms used herein but not
otherwise defined shall have the meanings given such terms in the Resolution.
2. The Bond has been in all respects duly executed for delivery pursuant to authority
conferred upon such officers; no obligations other than those described above have been issued
pursuant to such authority; none of the proceedings or records that has been certified to the
Purchaser or to the attorneys approving the legality of the issuance of the Bond has been in any
manner repealed, amended or changed except as shown by additional proceedings or records
furnished each of them; and there has been no material adverse change in the financial condition
of the City or the circumstances affecting the Bond, except as shown by the materials so
furnished.
3. No litigation or other judicial or administrative proceeding is now pending, or, to
the best of our knowledge, threatened, (i) restraining or enjoining the sale, issuance or delivery of
the Bond, (ii) questioning the organization of the City or the right of any officers of the City to
their respective offices, (iii) questioning the right and power of officers of the City to deliver the
Bond, (iv) questioning the validity of the creation or extension of Special Improvement District
No. 747 (the “District”) or the work to be undertaken for the special benefit thereof or any
contract relating thereto, (v) challenging the validity of the levy of any special assessments to
pay the principal of or interest on the Bond, or (vi) questioning the levy of any taxes or the
making of any loans to fund the City’s Special Improvement District Revolving Fund (the
“Revolving Fund”) or the pledge thereof to the Bond. No sufficient petition requesting a
referendum has been filed with respect to the Resolution or any of the resolutions or official
actions of the City Commission authorizing the issuance and sale of the Bond or any proceedings
preliminary thereto, including the resolution creating the District.
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4. Pursuant to Section 148 of the Internal Revenue Code of 1986, as amended (the
“Code”), and the Treasury Regulations applicable thereunder (the “Regulations”), we, as the
officers of the City responsible for issuing the Bond, hereby certify the present expectations of
the City on the date hereof with respect to the Bond are as follows:
(a) The Bond is being issued for the purpose of financing or reimbursing the
cost of certain public improvements (the “Improvements”) of special benefit to the
properties within the District, to fund a deposit to Revolving Fund, and paying costs of
issuance of the Bond. The Improvements are intended for use by members of the general
public.
(b) Based upon the most recent estimate of costs by the City Engineer, the
City has expended or expects to expend the following sums on the Improvements:
Construction and contingency $ 3,274,177.00
Engineering design 242,922.73
Construction engineering 242,922.73
Bond counsel 40,000.00
Revolving Fund deposit (5%) 200,050.00
Rounding 927.54
Total $ 4,001,000.00
(c) The City has heretofore entered into contracts for the Improvements, in the
form of architectural or engineering services, site development or construction, in the
sum of at least $200,050, which sum is not less than five percent of the net sale proceeds
of the Bond.
(d) Work on the Improvements is underway and the Improvements are
expected to be substantially complete by November 30, 2020.
(e) The City will receive $4,001,000.00 from the Purchaser, representing
payment for the principal of the Bond.
(f) Of the amount the City will receive from the Purchaser, $3,760,950 will
be used to pay the costs of the Improvements, $40,000 will be used to pay costs of
issuance of the Bond and $200,050.00 will be deposited in the Revolving Fund.
(g) The amount to be received by the City from the Purchaser, less the amount
deposited in the Revolving Fund, plus investment earnings thereon (which are expected
to be applied to costs of the Improvements or to pay interest on the Bond during
construction of the Improvements), does not exceed the amount to be spent by the City
with respect to the Improvements.
(h) The City expects to spend all of the sale proceeds of the Bond on costs of
the Improvements or costs of issuance by December 30, 2020, except the amounts
deposited in the Revolving Fund.
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(i) The Bond is not a “hedge bond” within the meaning of Section 149(g) of
the Code. The City expects to spend not less than 85 percent of the spendable proceeds
of the Bond to pay costs of the Improvements within three years after the date hereof and
less than 50 percent of the proceeds of the Bond are invested in nonpurpose investments
having a substantially guaranteed yield for four years or more.
(j) Proceeds of the Bond and investment income thereon to be used to finance
the costs of the Improvements and pay costs of issuance of the Bond will be invested for
a temporary period pursuant to Section 1.148-2(e)(2) of the Regulations ending on the
earlier of: (i) three years from the date hereof (August 14, 2023), or (ii) the date that the
Improvements would be completed in the exercise of due diligence and all costs thereof
promptly paid. If, at the conclusion of such temporary period, proceeds of the Bond,
other than proceeds deposited in the Revolving Fund, and investment income thereon
have not been allocated to the governmental purposes of the Bond, such amounts will not
be invested at a yield greater than the yield of the Bond (3.1752514 %), if and to the
extent such restriction is necessary to prevent the Bond from being an arbitrage bond
within the meaning of Section 148 of the Code and Regulations.
(k) The Improvements have not been and are not expected to be sold or
otherwise disposed of by the City during the term of the Bond. The City expects that the
Improvements will remain owned and operated by the City substantially in the manner in
which they are now owned and operated for the indefinite period concluding not earlier
than the final stated maturity date of the Bond.
(k) The City reasonably expects that during the term of the Bond no private
business use will be made of the Improvements and that no private payments or security
will be made or furnished that would cause the Bond to be a “private activity bond”
within the meaning of Section 141 of the Code and applicable Regulations. No proceeds
of the Bond are being or will be loaned to any nongovernmental person and the special
assessments levied in respect of the Improvements meet the exception for tax assessment
loans contained in Section 1.141-5(d) of the Regulations. The City reasonably expects
that the Bond will not be a private activity bond within the meaning of Section 141 of the
Code.
(l) No other obligations of the City (a) are being issued at substantially the
same time as the Bond, (b) are being sold pursuant to the same plan of financing as the
Bond, and (c) are reasonably expected to be paid from substantially the same source of
funds (determined without regard to guarantees from unrelated parties) as will be used to
pay the Bond, within the meaning of Section 1.150-1(c) of the Regulations.
(m) The yield of the Bond, computed in accordance with Section 148 of the
Code and applicable Regulations, is 3.1752514 % per annum.
(n) The principal of and interest on the Bond are payable from the 2020
Special Improvement District No. 747 Fund (the “District Fund”) of the City. The City
expects to use only the District Fund to pay the principal of and interest on the Bond.
4
The special assessments appropriated to the District Fund are expected to produce
amounts sufficient to pay all principal of and interest on the Bond when due.
If on any interest payment date there will be a balance in the District Fund after
payment of the principal and interest due on the Bond drawn against it, either from the
prepayment of special assessments levied in the District or from the transfer of surplus
money from the Construction Account to the Principal Account, the City Clerk is
required by law to call for redemption outstanding Bonds or portions thereof which,
together with the interest thereon to the date of redemption, will equal the amount on
hand in the Principal Account and Interest Account on that date. The Principal Account
and Interest Account will be used primarily to achieve a proper matching of revenues and
debt service within each bond year and will be fully depleted at least once a year on July
1 in each bond year (the 12-month period ending on July 1), except for a reasonable
carryover amount which is not expected to exceed the greater of (i) the earnings on
money in the Principal Account and Interest Account for the preceding bond year or
(ii) one-twelfth of the annual debt service on the Bond in the preceding bond year.
Consequently, the amounts on deposit in the Principal Account and Interest Account
constitute a “bona fide debt service fund” for the Bond within the meaning of Section
1.148-1(b) of the Regulations, and such amounts may be invested at an unrestricted yield
for a temporary period of 13 months.
(o) As of the first day of each month, commencing September 1, 2020, the
City Clerk will determine the amount on hand in the Principal Account and Interest
Account in the District Fund. If any amount has been on deposit therein for a period
longer than 13 months, such amount will not be invested at a yield greater than the yield
of the Bond (3.1752514 %), except for an amount up to the carryover amount described
in paragraph 4(n) or as provided in paragraph 4(s) hereof, if and to the extent such
restriction is necessary to prevent the Bond from being an arbitrage bond within the
meaning of Section 148 of the Code and the Regulations.
(p) The City has established the Revolving Fund pursuant to Montana Code
Annotated, Sections 7-12-4221 to 7-12-4229, as amended, to secure certain outstanding
special improvement bonds of the City, including the Bond. The City shall deposit in the
Revolving Fund proceeds of the Bond in the amount of $200,050.00. The amount on
deposit therein, after giving effect to the deposit from the proceeds of the Bond, is
$557,000. This amount secures special improvement bonds of the City, including the
Bond, issued in the original aggregate principal amount of $6,557,110, of which
$5,569,998 is outstanding.
Unless the Regulations otherwise require, the City will allocate amounts on hand
in the Revolving Fund, as a commingled reserve fund as provided in Section 1.148-
6(e)(6)(i) of the Regulations, to outstanding issues of special improvement bonds secured
thereby in proportion to their respective original principal amounts. The City shall
reallocate funds on deposit in the Revolving Fund to outstanding issues of bonds or
warrants secured thereby upon the issuance or retirement of a series of bonds or warrants
secured thereby and, if not done otherwise, at least every three years.
5
The Revolving Fund is required for the marketability of the Bond and constitutes
a “reasonably required reserve” for the Bond within the meaning of Section 148(d) of the
Code and Section 1.148-2(f) of the Regulations to the extent that the amount on deposit
in the Revolving Fund allocable to the Bond (the “Reserve Amount”) does not exceed the
Reserve Limitation (as hereinafter defined). For purposes of this paragraph 4(q), the
“Reserve Limitation” is equal, as of the date of calculation, to the lesser of: (i) ten percent
(10%) of the proceeds of the Bond ($400,100.00); (ii) the maximum amount of principal
and interest payable on the Bond in the current or any future fiscal year of the City
($270,760.62), and (iii) 125% of the average debt service on the Bond payable in any
calendar year of the City during the term of the Bond ($338,450.80).
Any portion of the Reserve Amount that is in excess of the Reserve Limitation
shall not be invested at a yield in excess of the yield of the Bond (3.1752514 %), except
as permitted by paragraph 4(s) hereof. As of the date hereof, the Reserve Amount is
$340,478.66. The Reserve Limitation is $270,760.62. To the extent the “minor portion”
amount under paragraph 4(s) is available for allocation in an amount by which the
Reserve Amount exceeds the Reserve Limitation, the City will so allocate such amount.
(r) Except as described in this Section 4, the City has not created or
established, and does not expect to create or establish, any sinking or similar fund which
is reasonably expected to be used to pay debt service on the Bond or which is pledged as
collateral to secure the Bond. No amounts in any other funds or accounts of the City are
reserved for or pledged to the payment of debt service on the Bond or will be used to
replace funds that will be used to pay debt service on the Bond.
(s) An aggregate amount not to exceed the “minor portion” amount for the
Bond ($100,000) may be invested pursuant to Section 148(e) of the Code without
restriction as to yield. To the extent (i) the proceeds of the Bond and investment income
thereon in the Construction Account in the District Fund are invested beyond the date
described in paragraph 4(j) hereof, (ii) an amount in excess of the amount described in
paragraph 4(o) has been on hand in the Principal Account and Interest Account for a
period longer than 13 months, and (iii) the Reserve Amount exceeds the Reserve
Limitation, such amounts in the aggregate may be invested up to the minor portion
amount at a yield greater than the yield of the Bond.
(t) The Bond will not be outstanding longer than necessary, within the
meaning of Section 1.148-1(c)(4) of the Regulations. The weighted average maturity of
the Bond (11.133 years) does not exceed 120 percent of the average reasonably expected
economic life of the Improvements. Such average reasonably expected economic life is
not less than 20 years.
(u) The sale proceeds of the Bond do not exceed the amount necessary to
achieve the governmental purposes of the Bond. No portion of the Bond is issued solely
for the purpose of investing such portion at a materially higher yield than the yield on the
Bond. None of the proceeds of the Bond will be used directly or indirectly to replace
funds which were used directly or indirectly to acquire obligations with a yield that is
materially higher than the yield of the Bond.
6
(v) We have investigated the facts, estimates and circumstances surrounding
the issuance of the Bond, which are described summarily in this Certificate. To the best
of our knowledge and belief, such facts, estimates and circumstances are correct and
complete and the City’s expectations as to future events, which are based thereon, are in
all respects reasonable and made in good faith. To the extent that the expectations of the
City are based upon estimates and representations made by others, including the
Purchaser, we have examined such estimates and representations and consider them to be
reasonable and correct. Any statements in this Certificate involving future events,
whether or not expressly so stated, are intended as expectations of the City and not as
representations of fact. On the basis of such facts, estimates and circumstances, it is
expected that the proceeds of the Bond will be used in a manner that would not cause the
Bond to be considered an “arbitrage bond” within the meaning of Section 148 of the
Code, and there are no present facts, estimates or circumstances which would change the
foregoing conclusion.
5. The provisions of this Section 5 are intended to establish and provide for
compliance by the City with Treasury Regulations, Section 1.150-2 (the “Reimbursement
Regulations”) applicable to the “reimbursement proceeds” of the Bond, being those proceeds
which will be used by the City to reimburse itself for any expenditure with respect to the
Improvements which the City paid or will have paid prior to the issuance of the Bond (a
“Reimbursement Expenditure”).
The City hereby certifies and covenants as follows:
(a) Except as hereinafter provided, on or before the date of payment of any
Reimbursement Expenditure, the City by resolution of the City Commission on January
14, 2019 made a written declaration of the City’s official intent (the “Declaration”) which
complies with the provisions of Section 1.150-2(d) and (e) of the Reimbursement
Regulations. The Declaration need not cover, however, Reimbursement Expenditures:
(i) to be paid or reimbursed from sources other than the Bond, (ii) constituting
“preliminary expenditures” (within the meaning of Section 1.150-2(f)(2) of the
Regulations) for the Improvements, including engineering or architectural expenses and
similar preparatory expenses, which in the aggregate do not exceed 20% of the “issue
price” of the Bond, (iii) in a “de minimus” amount (as defined in Section 1.150-2(f)(1) of
the Regulations), i.e., $200,050 or (iv) Reimbursement Expenditures paid not more than
60 days before the date of the Declaration. $852,751.36 of the proceeds of the Bond will
be used by the City to reimburse itself for expenditures with respect to the Improvements
which the City paid after its adoption of the Declaration but prior to the issuance of the
Bond.
(b) As of the date of the Declaration, no funds from sources other than the
Bond were, or were reasonably expected to be, reserved, allocated on a long-term basis,
or otherwise set aside by the City to provide financing for the Reimbursement
Expenditure to be reimbursed from proceeds of the Bond.
(c) Each Reimbursement Expenditure to be reimbursed from proceeds of the
Bond, other than costs of issuing the Bond, is a capital expenditure (i.e., a cost that is
7
properly chargeable to capital account (or would be with a proper election) under general
federal income tax principles).
(d) The “reimbursement allocation” described in the Reimbursement
Regulations for each Reimbursement Expenditure to be reimbursed from proceeds of the
Bond shall be made forthwith following (but not prior to) the issuance of the Bond and in
all events within the period ending on the date which is 18 months after the later of: (i)
the date of payment of the Reimbursement Expenditure or (ii) the Improvements are first
placed in service or abandoned, but in no event more than three years after the
Reimbursement Expenditure is paid.
(e) Each such reimbursement allocation will be evidenced by an entry on the
official books or records of the City maintained for and in connection with the Bond and
will specifically identify the actual prior Reimbursement Expenditure to be reimbursed
from proceeds of the Bond.
(f) The City is unaware of any facts or circumstances which would cause it to
question the reasonableness or accuracy of this Section 5 or of the Declaration, or its
compliance with any of the covenants herein contained.
$4,001,000
Special Improvement District Bond No. 747, Series 2020
City of Bozeman, Montana
CERTIFICATE AND RECEIPT OF LENDER
I, the undersigned, being a duly qualified and acting representative of Sterling National
Bank, the original purchaser (the “Lender”) of the $4,001,000 Special Improvement District
No. 747 Bond, Series 2020 (the “Bond”), issued by City of Bozeman, Montana (the “City”),
dated, as originally issued, as of August 14, 2020, hereby acknowledge receipt of the Bond,
fully executed and authenticated, in the aggregate principal amount of $4,001,000, payable
semiannually on each January 1 and July 1, commencing January 1, 2021 and, absent
prepayment, ending July 1, 2040, and bearing interest from the date of original registration
until paid or duly called for prepayment and redemption at the rate of 3.175% per annum and
otherwise conforming with the provisions of a resolution adopted by the City Council of the
City on August 11, 2020 (the “Bond Resolution”).
On behalf of the Lender, I hereby certify that:
1. The Lender is a national banking association and has full power and authority to
extend credit through its purchase of the Bond and make the loan evidenced thereby. The
Lender is an “accredited investor” as defined in Rule 501(a) of the Securities Act.
2. The Lender has sufficient knowledge and experience in financial and business
matters, including purchase and ownership of municipal and other tax-exempt obligations, to
be able to evaluate the risks and merits represented by the extension of credit through its
purchase of the Bond and the making of the loan evidenced thereby.
3. The Lender has authority to extend credit through its purchase of the Bond and
to execute other instruments and documents required to be executed by it in connection with its
extension of credit through its purchase of the Bond.
4. The Lender understands that an official statement, prospectus, offering circular,
or other offering statement has not been provided with respect to the Bond. The Lender has
made its own inquiry and analysis with respect to the City, Special Improvement District No.
747, the Bond and the security therefor, and other material factors affecting the security for and
payment of the Bond. The Lender received and has reviewed a copy of the Bond Resolution.
5. The Lender acknowledges that it has reviewed information, including financial
statements and other financial information, regarding the City and has had the opportunity to
ask questions and receive answers from knowledgeable individuals concerning the City, the
Bond and the security therefor, so that it has been able to make an informed decision to extend
credit through its purchase of the Bond and to make the loan evidenced thereby and
acknowledges that it has not relied on the City with respect to any information with respect to
2
the advisability of extending credit through its purchase of the Bond or the security for the
Bond.
6. The Lender understands that the Bond: (i) is not registered under the Securities
Act of 1933, as amended, and is not registered or otherwise qualified for sale under the “Blue
Sky” laws and regulations of any state, (ii) is not listed on any stock or other securities
exchange, and (iii) has not been rated by any credit rating agency.
7. The Lender: (i) is not acting as an Underwriter with respect to the Bond, (ii) has
not contracted with any person pursuant to a written agreement to have such person participate
in an initial sale of the Bond to the Public, and (iii) has not agreed with the City pursuant to a
written agreement to sell the Bond to persons other than the Lender or a related party to the
Lender. For purposes of this paragraph:
(a) Public means any person (i.e., an individual, trust, estate, partnership, association,
company, or corporation) other than an Underwriter or a related party. Persons
generally are “related parties” for purposes of this certificate if they have more than
50 percent common ownership or control, directly or indirectly.
(b) Underwriter means (i) any person that agrees pursuant to a written contract with the
City (or with the lead underwriter to form an underwriting syndicate) to participate in
the initial sale of the Bond to the Public, and (ii) any person that agrees pursuant to a
written contract directly or indirectly with a person described in clause (i) of this
paragraph to participate in the initial sale of the Bond to the Public (including
member of a selling group or a party to a retail distribution agreement participating in
the initial sale of the Bond to the Public.
8. As described in paragraph (7) above, the Bond is being acquired by the Lender for
its own account and not with a present view toward resale or distribution; provided, however,
that the Lender reserves the right to sell, transfer or redistribute the Bond, but agrees that any
such sale, transfer or distribution by the Lender shall be to (i) an affiliate of the Lender; (ii) a
trust or other custodial arrangement established by the Lender or one of its affiliates, the owners
of any beneficial interest in which are limited to qualified institutional buyers or accredited
investors; or (iii) a person or entity that the Lender reasonably believes is qualified to purchase
the Bond and that makes representations substantially similar to the representations the Purchaser
makes in this certificate. The Lender presently intends to hold the Bond to evidence the loan it
has made to the City for the term of the Bond, other than selling a 100% participation interest in
the Bond to its affiliate, Sterling National Funding Corp., a New York corporation and wholly-
owned subsidiary of the Lender.
9. The Lender acknowledges and agrees that: (i) the Bond will be evidenced by a
physical certificate delivered to the Lender by the City, (ii) the Bond will not have a CUSIP
number, (iii) the Bond is not, and will not be, rated by an independent rating agency, (iv) the
Lender shall not transfer the Bond except in accordance with paragraph 8 above, (v) the principal
amount of the Bond and the principal amount of the loan evidenced thereby is $4,001,000, (vi)
payments on the Bond shall be made directly by the City to the Lender, (vii) payments under the
Bond conform to the loan amortization schedule provided by the Lender to the City, (viii) the
X
UNITED STATES OF AMERICA
STATE OF MONTANA
GALLATIN COUNTY
CITY OF BOZEMAN
SPECIAL IMPROVEMENT DISTRICT NO. 747 BOND, SERIES 2020
Interest at the rate per annum specified below,
payable on the 1st day of January and the 1st day of July
in each year, commencing January 1, 2021.
No. R-1 $4,001,000
Interest Rate Maturity Date
Date of
Original Issue
3.175% July 1, 2040 August 14, 2020
REGISTERED OWNER: STERLING NATIONAL BANK
PRINCIPAL AMOUNT: FOUR MILLION ONE THOUSAND DOLLARS
FOR VALUE RECEIVED, City of Bozeman, Montana (the “City”), will pay to the
registered owner identified above, or registered assigns, the total principal amount specified above,
together with interest thereon, in installments of principal and interest on each January 1 and July
1, which shall be in the years and in the amounts set forth on Schedule 1 hereto (which amounts,
as to interest payments, are subject to recalculation as described herein if not timely paid), solely
from the Principal Account and Interest Account in the District Fund, as authorized by Resolution
No. 5208, adopted August 11, 2020 (the “Resolution”), all subject to the provisions hereinafter
described relating to the redemption of this Bond before maturity.
Unpaid principal installments of this Bond bear interest at the rate per annum specified
above from the date of original issue specified above, or from such later date to which interest
hereon has been paid or duly provided for, until the maturity date specified above or an earlier date
on which this Bond shall have been duly called for redemption by the City Finance Director.
Interest on this Bond is payable semiannually on each January 1 and July 1, commencing January
1, 2021, to the owner of record of this Bond appearing as such in the bond register as of the close
of business on the twentieth day (whether or not a business day) of the immediately preceding
month. This Bond represents all principal installments of the issue. The principal of and interest
on this Bond are payable in lawful money of the United States of America. Interest is calculated
on the basis of a 360-day year comprised of 12 30-day months. The City Clerk shall initially serve
as Registrar for this Bond. The interest on and principal installments of this Bond shall be payable
by check or draft drawn on the Registrar, or by wire transfer if requested by the registered owner;
provided that the final installment of principal (whether at maturity or earlier redemption) shall be
paid by the Registrar only upon presentation and surrender of this Bond to the Registrar.
2
This Bond comprises an issue in the aggregate principal amount of $4,001,000 (the
“Bond”), and is issued pursuant to and in full conformity with the Constitution and laws of the
State of Montana thereunto enabling, including Montana Code Annotated, Title 7, Chapter 12,
Parts 41 and 42, as amended (the “Act”), and ordinances and resolutions duly adopted by the
governing body of the City, including the Resolution, for the purpose of financing the costs and
expenses of making certain local improvements (the “Improvements”) for the special benefit of
property located in Special Improvement District No. 747 (the “District”), funding a deposit to the
Special Improvement Revolving Fund (the “Revolving Fund”) and paying costs of issuance. The
Bond is issuable only as a single, fully registered bond.
This Bond is payable from the collection of a special tax or assessment levied upon all
assessable real property within the boundaries of the District benefited by the Improvements, in an
aggregate principal amount not less than $4,001,000, except as such amounts may be reduced or
increased in accordance with provisions of Montana law. Such assessments constitute a lien
against the property against which they are made and levied and are to be deposited into the 2019
Special Improvement District No. 747 Fund of the City (the “District Fund”). The Bond is not a
general obligation of the City.
The City has validly established the Revolving Fund to secure the payment of certain of its
special improvement and sidewalk, curb, gutter and alley approach bonds and warrants, including
the Bond. The City has also agreed, to the extent permitted by the Act, to issue orders annually,
or more often as necessary, authorizing loans or advances from the Revolving Fund to the District
Fund, in amounts sufficient to make good any deficiency in the District Fund to pay principal of
or interest on the Bond, to the extent money is available in the Revolving Fund, and to provide
funds for the Revolving Fund by annually levying such tax or making such loan from its general
fund, subject to the limitation that no such tax levy or loan may in any year cause the balance in
the Revolving Fund to exceed legal limits based on a percentage of the principal amount of the
City’s then outstanding special improvement and sidewalk, curb, gutter and alley approach bonds
and warrants secured thereby and subject to the durational limitations specified in the Act. The
City hereby determines, covenants and agrees to levy the property tax described above to provide
funds for the Revolving Fund so long as the Bond is outstanding to the extent required under the
provisions of the Resolution and the Act, even though such property tax levy may, under applicable
law or provisions of the home rule charter of the City, require that property tax levies of the City
for other purposes be reduced correspondingly.
The principal installments of this Bond are subject to mandatory redemption on any interest
payment date if, after paying all principal and interest then due on the Bond, there are funds to the
credit of the District Fund, either from the prepayment of assessments levied in the District or from
the transfer of surplus money from the Construction Account to the Principal Account, for the
redemption thereof.
In addition, this Bond is subject to redemption at the option of the City, in whole but not
in part, on any payment date, from sources of funds available therefor other than those described
in the paragraph above and in Section 2.05(a) of the Resolution. Such optional redemption shall
be at a redemption price stated below as a percentage of the then-outstanding principal amount of
the Bond, together with interest on the outstanding principal amount to the redemption date:
3
Year Percentage
January 1, 2021 through July 1, 2027 102%
January 1, 2028 through July 1, 2032 101%
January 1, 2033 and thereafter 100%
The date of redemption and the amount of principal installments of the Bond to be
redeemed shall be fixed by the City Finance Director, who shall cause the Registrar to give notice
by first class mail, postage prepaid, to the owner or owners of the Bond at their addresses appearing
on the bond register, of the amount of principal installments of the Bond to be redeemed and the
date on which payment will be made, which date shall not be less than 30 days after the date of
mailing of notice. On the date so fixed interest on the principal installments of the Bond so
redeemed shall cease to accrue.
If the Bond is prepaid in part, the Purchaser or then-registered owner of the Bond will
reamortize the principal remaining upon redemption and prepayment at the interest rate over the
then-remaining term in equal or substantially equal semiannual payments of principal and interest.
Upon partial redemption and prepayment there shall be no need to exchange a new Bond for the
unredeemed portion of the existing Bond; provided that the amortization schedule attached as
Schedule 1 to the form of the Bond shall be replaced by an amortization schedule reflecting the
reamortization of the principal then outstanding in the manner described above.
As provided in the Resolution and subject to certain limitations set forth therein, this Bond
is transferable upon the books of the City at the principal office of the Registrar, by the registered
owner hereof in person or by his attorney duly authorized in writing upon surrender hereof together
with a written instrument of transfer satisfactory to the Registrar, duly executed by the registered
owner or his attorney. Upon such transfer, the City will cause a new Bond to be issued in the name
of the transferee or registered owner, of the same aggregate principal amount, bearing interest at
the same rate and with principal installments payable on the same dates, subject to reimbursement
for any tax, fee or governmental charge required to be paid with respect to such transfer or
exchange.
The City and the Registrar may deem and treat the person in whose name this Bond is
registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of
receiving payment and for all other purposes, and neither the City nor the Registrar shall be
affected by any notice to the contrary.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all things
required to be done precedent to the issuance of this Bond have been properly done, happened and
been performed in the manner prescribed by the laws of the State of Montana and the resolutions
and ordinances of the City of Bozeman, Montana, relating to the issuance hereof.
4
This Bond shall not be valid or become obligatory for any purpose or be entitled to any
security or benefit under the Resolution until the Certificate of Authentication hereon shall have
been executed by the Registrar by the manual signature of one of its authorized representatives.
IN WITNESS WHEREOF, the City of Bozeman, Montana, by its City Commission, has
caused this Bond to be executed by the signatures of the Mayor and the City Clerk and by the
official seal of the City.
_____________________________
Mayor
_____________________________
City Clerk
(SEAL)
CERTIFICATE OF AUTHENTICATION
This Bond and the principal installments hereof have been registered as required by law
on the books of the City as of August 14, 2020.
CITY OF BOZEMAN, MONTANA,
as Registrar
By ______________________________________
City Clerk
5
The following abbreviations, when used in the inscription on the face of this Bond, shall
be construed as though they were written out in full according to applicable laws or regulations:
TEN COM — as tenants UTMA...........Custodian...............
in common (Cust) (Minor)
TEN ENT — as tenants
by the entireties
under Uniform Transfers to Minors
JT TEN — as joint tenants Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
with right of (State)
survivorship and
not as tenants in
common
Additional abbreviations may also be used.
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers
unto the within Bond and all rights and title thereunder,
and hereby irrevocably constitutes and appoints attorney to transfer the
within Bond on the books kept for registration thereof, with full power of substitution in the
premises.
Dated:
PLEASE INSERT SOCIAL SECURITY
OR OTHER IDENTIFYING NUMBER
OF ASSIGNEE: NOTICE: The signature to this assignment
must correspond with the name as it appears
upon the face of the within Bond in every
particular, without alteration, enlargement
/ / or any change whatsoever.
SIGNATURE GUARANTEED
Signature(s) must be guaranteed by an
“eligible guarantor institution” meeting
the requirements of the Registrar,
which requirements include membership
or participation in STAMP or such other
“signature guaranty program” as may be
determined by the Registrar in
addition to or in substitution for STAMP,
all in accordance with the Securities
Exchange Act of 1934, as amended.
6
SCHEDULE 1
DEBT SERVICE SCHEDULE
Bozeman, Montana - Code of Ordinances
Chapter 2 - ADMINISTRATION
ARTICLE 6. - FINANCE
DIVISION 6. - SPECIAL IMPROVEMENT DISTRICT REVOLVING FUND[18]
Sec. 2.06.1050. - Established; name and purpose.
In order to secure the prompt payment of any special improvement district bonds and/or warrants
issued in payment of improvements made in any special improvement district or districts created after
February 25, 1929, and the interest thereon, as it becomes due, there is created and established a fund
to be known and designated as "special improvement district revolving fund."
(Code 1982, § 3.16.010)
Sec. 2.06.1060. - Sources of funds.
A. For the purpose of providing funds for the special improvement district revolving fund, the commission:
1. Transfer from general fund. May, in its discretion, from time to time, transfer to the special
improvement district revolving fund from the general fund of the city such amount or amounts as
may be deemed necessary, which amount or amounts so transferred shall be deemed and
considered and shall be loans from such general fund to the special improvement district revolving
fund; and
2. Tax levy. Shall, in addition to such transfers from the general fund, or in lieu thereof, levy and
collect for the special improvement district revolving fund such a tax, hereby declared to be for a
public purpose, on all the taxable property of the city, as shall be necessary to meet the financial
requirements of the fund, such levy, together with such transfer, not to exceed in any one year
five percent of the principal amount of the then-outstanding special improvement district bonds
and/or warrants.
(Code 1982, § 3.16.020)
Sec. 2.06.1070. - Loans from revolving fund to special improvement district fund; conditions.
Whenever any special improvement district bond or warrant, or interest thereon, issued for
improvements made in special improvement districts created after February 25, 1929, shall be or shall
become due and payable, and there shall then be either no money or not sufficient money in the
appropriate special improvement district fund with which to pay the same, an amount sufficient to make
up the deficiency may, by order of the commission, be loaned by the special improvement district
revolving fund to such special improvement district fund, and thereupon such bond or warrant or such
interest thereon, whether it be for principal or for interest, or for both, as the commission may in its
discretion elect or determine, shall be paid from the money so loaned, or from the money so loaned when
added to the insufficient amount, as the case may require.
(Code 1982, § 3.16.030)
Sec. 2.06.1080. - Liens imposed for amounts loaned.
Whenever any loan is made to any special improvement district fund from the special improvement
district revolving fund, the special improvement district revolving fund shall have a lien therefor on all
unpaid assessments and/or installments of assessments on such district, whether delinquent or not, and
on all moneys thereafter coming into such special improvement district fund to the amount of such loan,
together with interest thereon from the time it was made at the rate or percentage borne by the bond or
warrant for payment of which, or of interest thereon, such loan was made. Whenever there shall be
moneys in such special improvement district fund which are not required for the payment of any bond or
warrant of such special improvement district, or of interest thereon, so much of such moneys as may be
necessary to pay such loan shall, by order of the commission, be transferred to the special improvement
district revolving fund, and after all the bonds and warrants issued on any special improvement district
have been fully paid, all moneys remaining in such special improvement district fund shall, by order of the
commission, be transferred to and become a part of the special improvement district revolving fund.
(Code 1982, § 3.16.040)
Sec. 2.06.1090. - Use of surplus in fund.
A. Whenever there is, in the special improvement district revolving fund, an amount in excess of the
amount which the commission deems necessary for the payment or redemption of maturing bonds or
warrants, or interest thereon, the commission may:
1. Transfer to general fund. By a vote of all its members, at a meeting called for that purpose, order
such excess, or any part thereof, transferred to the general fund of the city; or
2. Purchase of property for delinquent taxes. Use such excess, or any part thereof, for the purpose
of purchase of property at sales for delinquent taxes or assessments, or both, or which may have
been struck off or sold to the county for delinquent taxes or assessments, or both, and against
which property there then are any unpaid assessments for special improvements on account
whereof there are outstanding special improvement district bonds or warrants of the city; and
3. Disposition of property. Sell any tax certificates issued on any such sale or sales. After acquiring
title to such property, the commission may lease such property or sell the same at public or private
sale and make conveyance thereof, or otherwise dispose thereof, as the interest of the city may
require; and all proceeds from such sale of tax certificates, or from such leasing, sale or other
disposition of the property, shall belong to and be paid into the special improvement district
revolving fund, and be subject to transfer, in whole or in part, to the general fund by the vote of
all the members of the commission at a meeting called for that purpose, as hereinbefore provided.
(Code 1982, § 3.16.050)
Sec. 2.06.1100. - Levy of tax; method and effect.
The special tax to be levied, as herein provided in section 2.06.1060.A.2, shall be in addition to the
tax for general, municipal and administrative purposes, and the levy shall be made by the commission at
the time and by the resolution passed and adopted by the commission as provided by section 2.06.570.
(Code 1982, § 3.16.060)
Sec. 2.06.1110. - Statutory authority for division provisions.
This division is passed pursuant to the power and authority vested in the commission by chapter 24,
Laws of Montana, 21st Session, 1929, entitled:
"An Act Relating to Special Improvement Districts in Cities and Towns; Authorizing the Creation,
Maintenance and Use of a Special Improvement District Revolving Fund in any City or Town for the
Purpose of Securing Prompt Payment of Special Improvement District Bonds and Warrants and
Interest Thereon, and Requiring Levy of Taxes When Necessary for the Financial Requirements of
Such Fund,"
and the interpretation thereof by the Supreme Court of the state in the case of Stanley v. Jeffries, 86
Mont. 114. The statute is now codified as MCA 7-12-4221 et seq.
(Code 1982, § 3.16.070)
Secs. 2.06.1120—2.06.1240. - Reserved.
Footnotes:
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State Law reference— Special improvement districts, MCA 7-12-4101 et seq.