HomeMy WebLinkAboutResolution 3302 Calling for sale of bonds for 1998 sidewalk programs
COMMISSION RESOLUTION NO. 3302
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, RELATING TO $112,000 SPECIAL SIDEWALK, CURB, GUTTER
AND ALLEY APPROACH BONDS, SERIES 1999; AUTHORIZING THE
ISSUANCE AND CALLING FOR THE PUBLIC SALE THEREOF AND MAKING
FINDINGS WITH RESPECT TO AND AUTHORIZING THE PLEDGE OF THE
REVOL VING FUND TO THE SECURITY THEREOF.
BE IT RESOLVED by the City Commission of the City of Bozeman, Montana (the
"City"), as follows:
Section 1. Recitals.
(a) The City is authorized pursuant to Section 7-14-4109, M.C.A. to order
the construction or reconstruction of sidewalks, curbs or gutters in front of any lot or parcel
of land and may order alley approaches constructed or replaced adjacent to any lot or parcel
of land within the City. By Resolution Nos. 3230 and 3238, adopted March 16, 1998 and
May 18, 1998, respectively, the Commission set forth its intention and after notice and
public hearing and by Resolution Nos. 3237 and 3245, adopted May 18, 1998 and June 15,
1998, respectively, ordered in certain sidewalks, curbs, gutters and alley approaches which
were described in the respective resolutions (the "Orders"). The Orders were duly entered
in the minutes of the Commission and set forth the names of the streets along which
sidewalks, curbs or gutters are to be constructed or along which the alley approaches are
to be constructed or replaced (the "Project"). As provided in the Orders and in accordance
with Section 7-14-4109, M.C.A., written notice of the Orders was given to the owners or
agents of owners of lots or parcels of land against which the costs of the proposed
improvements were to be assessed. Upon the expiration of the 30-day notice period in the
Orders, the City determined which of the proposed improvements have been or will be
constructed by the owners of the adjacent property and which of the proposed
improvements will be constructed by the City. The improvements to be constructed by the
City (the "Improvements") are described in Exhibit A attached hereto. The total estimated
costs of the Improvements to be constructed by the City are $155,861.40, including such
incidental costs and a deposit to the City's Special Improvement District Revolving Fund
created pursuant to Section 7-12-4221, M.C.A. (the "Revolving Fund"). The City is
authorized to pay the costs of constructing the Improvements by the issuance of special
warrants (the Special Sidewalk, Curb, Gutter and Alley Approach Warrants) drawn against
a fund to be known as the Special Sidewalk, Curb, Gutter and Alley Approach Fund and to
secure such warrants by the Revolving Fund. All of the costs of the Improvements are to
be paid from the proceeds of Special Sidewalk, Curb, Gutter and Alley Approach Warrants,
Series 1 999, hereinafter referred to as Special Sidewalk, Curb, Gutter and Alley Approach
Bonds (the "Bonds"), which are to be payable primarily from special assessments to be levied
against property which will be specially benefitted by the Improvements in an amount not
less than $ 1 1 2,000.
(b) It is necessary that the Bonds be issued and sold in an aggregate
principal amount of $ 1 1 2,000 to finance the costs of the Improvements, including incidental
costs, described in Subsection (a). The costs of the Improvements are currently estimated,
as follows:
Engineering $ 4,000.00
New Private Sidewalk Construction 82,575.80
New City Sidewalk Construction 3,040.00
Pedestrian Ramps 16,569.60
Private Sidewalk Repairs 23,654.00
City Sidewalk Repairs 600.00
Contingency 13,212.00
Administration 3,360.00
Resolution and Advertisements 750.00
Revolving Fund Deposit 5,600.00
Costs of Issuance 2.500.00
Total $ 155,861.40
Costs in excess of bond proceeds will be paid from City funds available
therefor in the approximate amount of $43,861.40.
Section 2. Findings and Determination to Pledge the Revolving Fund. The City is
authorized to secure payment of principal of and interest on the Bonds by the Revolving Fund
and is authorized to enter into the undertakings and agreements authorized in the Act in
respect of the Bonds, based on the factors required to be considered under Section
7-12-4225(4) of the Act.
Section 3. Method of Financing: Pledge of Revolving Fund: Findings and
Determinations. The City will issue Sidewalk, Curb, Gutter and Alley Approach Bonds in an
aggregate principal amount not to exceed $112,000 in order to finance the costs of the
Improvements. Principal of and interest on the Bonds will be paid from special assessments
levied against the property in the Project. This Commission further finds it is in the public
interest, and in the best interest of the City and the Project, to secure payment of principal
of and interest on the Bonds by the Revolving Fund and hereby authorizes the City to enter
into the undertakings and agreements authorized in Section 7-12-4225 in respect to the
Bonds.
In determining to authorize such undertakings and agreements, this Commission has
taken into consideration the following factors:
(a) Estimated Market Value of Parcels. The special assessments to be
levied against each lot, parcel, or tract for the Improvements is insignificant in comparison
to the market value of such lot, parcel, or tract in the Project area.
(b) Diversity of ProDertv Ownership. Substantially all of the lots, parcels,
or tracts in the Project area are under separate ownership. Given the diversity of ownership,
it is unlikely that financial difficulties would arise that would require a loan to be made from
the Revolving Fund.
(c) ComDarison of Special Assessments. PrODerty Taxes and Market Value.
Given the amount of the proposed assessment for the Improvements and the amount of
other special assessments and property taxes levied against the various parcels in the Project
area and the respective market value of the parcels, if the City had to enforce the
assessment lien against the properties for the Improvements there would be more than
sufficient value in the property to secure the obligation to the City.
(d) Delinquencies. The tax delinquency rate for properties in the Project
area is no greater than the delinquency rate of the City at large, and therefore, no unusual
need for loans from the Revolving Fund would be expected.
(e) The Public Benefit of the ImDrovements. Based on current City
Subdivision and Site Development Ordinances, and under City Commission policies, the cost
of installation of new curb, gutter, sidewalk, and drive approaches is to be borne by adjoining
property owners. The availability of good curb, gutters and sidewalks does have general
benefit, however, to the community at large as well as special benefit to the property
owners to be assessed, and therefore, the use of the Revolving Fund to secure the Bonds
is in the public interest.
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Section 4. Public Hearing. The Clerk of the Commission is hereby directed to
publish notice of the public hearing, which hearing will be held Monday, July 26, 1999, at
3:00 p.m., in the Commission Room, Municipal Building, 411 East Main Street, Bozeman,
Montana, at which the City Commission will conduct a public hearing concerning the Project
and all interested parties will be allowed to testify. The City Commission will also consider
all written comments submitted to the Clerk of the Commission prior to the hearing or
submitted to the Commission during the hearing.
Section 5. Terms of the Bonds. This Commission hereby authorizes the issuance
and sale of the Bonds, to be denominated "Special Sidewalk, Curb, Gutter and Alley
Approach Bonds, Series 1999," of the City in the aggregate principal amount of $112,000
for the purpose of financing the Improvements. The Bonds shall be dated, as originally
issued, as of August 1, 1999, and shall bear interest payable semiannually on January 1 and
July 1 of each year, commencing January 1, 2000, at a rate or rates designated by the
successful bidder at public sale and approved by this Commission. If issued as serial bonds,
the Bonds shall mature on July 1 in each of the following years and amounts:
Year Amount
2000 $17,000
2001 20,000
2002 25,000
2003 25,000
2004 25,000
If issued as amortization bonds, the Bonds will be issued as a single bond or divided
into several bonds, as the Commission may determine at the time of the sale, and the
principal of and interest on the Bonds shall be payable semiannually in equal payments on
each January 1 and July 1, commencing January 1, 2000, and concluding July 1, 2004,
unless the Bonds are earlier redeemed. Serial bonds shall be in the denomination of $5,000
each or any integral multiple thereof of single maturities; provided that one Bond with a
stated maturity in 2000 shall be in the principal amount of $7,000. Amortization bonds are
preferred.
The Bonds shall be issuable only as fully registered bonds and shall be executed by
the manual or facsimile signatures of the Mayor, City Manager and the Clerk of the
Commission. The Bonds shall be secured by the Revolving Fund.
Section 6. Public Sale. The Bonds shall be sold at a public competitive sale which
is hereby called and shall be held at a regular meeting of this Commission on July 26, 1999,
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at 3:00 p.m. The City will receive sealed bids for the Bonds in accordance with the notice
of sale hereinafter prescribed. The Clerk of the Commission is hereby authorized and
directed to cause notice of the sale to be published, as required by Montana Code
Annotated, Sections 7-12-4204, 7-7-4252 and 17-5-106, in the Bozeman Daily Chronicle,
once each week for two successive weeks preceding the week which contains the date of
sale. The notice of sale shall be published and mailed in substantially the form set forth as
Exhibit B to this resolution (which is hereby incorporated herein and made a part hereof) and
this Commission hereby adopts the terms and conditions set forth in such notice of sale as
the terms and conditions of the sale of the Bonds.
Section 7. Continuina Disclosure: ExemDtion. Bidders and other participating
underwriters in the primary offering of the Bonds need not comply with paragraph (b)(5) of
Rule 15c2-12 promulgated by the Securities and Exchange Commission under the Securities
Exchange Act of 1934 (the "Rule"), because the aggregate principal amount of the Bonds
and any other securities required to be integrated with the Bonds is less than $1,000,000.
Consequently, the City will not enter into any undertaking to provide continuing disclosure
of any kind with respect to the Bonds.
PASSED AND ADOPTED by the City Commission of the City of Bozeman, Montana,
this 6th day of July, 1999.
MARC'~G~if:~:;;~ Tempore
ATTEST:
e~ ;j ~/'A~
ROBIN L. SULLIVAN
Clerk of the Commission
APPROV~9,~S TO FORM:
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PAUL J. t.u,wf' \
City Attoui'ey
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EXHIBIT A
THE IMPROVEMENTS
Description
The Bonds are being issued to pay a portion of the costs of engineering,
reconstructing and installing certain local improvements to benefit certain properties in the
City described above consisting of various sidewalk, curb, gutter and alley approach
improvements consisting of the 1998A Sidewalk Program and the 1998B Sidewalk Program
(the "Improvements") as shown below.
1998A SIDEWALK PROGRAM
The City Commission has ordered in the installation of sidewalks along both sides
of the following streets:
. South Black Avenue between East Lincoln Street and South Rouse Avenue
. Carol Place between Kagy Boulevard and South Black Avenue
. South Tracy Avenue between East Mason Street and Kagy Boulevard
. Mason Street between South Willson Avenue and South Rouse Avenue
. South Rouse Avenue between East Garfield Street and South Black Street
. Hoffman Drive between South Tracy Avenue and South Rouse Avenue
. Accola Street between South Black Avenue
and South Rouse Avenue
. East Garfield Street a distance of one-half block east and west of South Rouse
Avenue
. East Lincoln Street a distance of one-half block east and west of South Rouse
Avenue
1998B SIDEWALK PROGRAM
The City Commission has ordered in the installation of sidewalks along both sides
of the following streets:
. Ravalli Street from Fowler Avenue to the west line of Valley Creek Subdivision,
Phase I
. Golden Valley Drive from Prairie Avenue to Ravalli Street
. Prairie Avenue from Ravalli Street to the south line of Valley Creek Subdivision,
Phase I
. Powder River Avenue from Ravalli Street to Golden Valley Drive
. Treasure Avenue from Ravalli Street to Golden Valley Drive
. Stillwater Avenue from Ravalli Street To Golden Valley Drive
. North 24th Avenue from West Babcock Street to West Beall Street
. West Mendenhall Street from North 24th Avenue to the west line of West
Babcock Subdivision
. Hunters Way from West Babcock Street to the north line of Westgate
Subdivision
. West Mendenhall Street from the east line of Westgate Subdivision to the west
line of Westgate Subdivision
. Gena Circle from Hunters Way to its easterly terminus
. Sweetgrass Avenue from Beaverhead Street to its southerly terminus
. Beaverhead Street from Sweetgrass Avenue to the east line of Cascade
Subdivision, Phase I
. Cascade Street from Fowler Avenue to the east line of Cascade Subdivision,
Phase I
. Broadwater Street from Sweetgrass Avenue to the east line of Cascade
Subdivision, Phase I
. Boylan Road from its northerly intersection with Story Mill Road to its southerly
intersection with Story Mill Road
. Birdie Drive from Boylan Road to Bridger Drive
. Par Court from Boylan Road to its southerly terminus
. North 25th Avenue from West Babcock Street to the north line of Brookside
Subdivision
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. Virginia Way from West Babcock Street to Donna Avenue
. Marilyn Court from Virginia Way to its easterly terminus
. Donna Avenue from the east line of Babcock Meadows Subdivision, Phase I, to
the west line of Babcock Meadows Subdivision, Phase I
. Hunters Way from Durston Road to the south line of Greenway Subdivision
. Dove Court from Hunters Way to its easterly terminus
. Grouse Court from Hunters Way to its easterly terminus
. West Villard Street from the east line of Greenway Subdivision to the west line
of Greenway Subdivision
. Greenway Avenue from Durston Road to West Villard Street
. Greenway Court from West Villard Street to its terminus
. Durston Road (south side only) from the east line of Greenway Subdivision to the
west line of Greenway Subdivision
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EXHIBIT B
NOTICE OF BOND SALE
$112,000 SPECIAL SIDEWALK, CURB, GUTTER AND
ALLEY APPROACH BONDS, SERIES 1999
CITY OF BOZEMAN, MONT ANA
NOTICE IS HEREBY GIVEN that the City of Bozeman, Montana (the IICity"), will sell
to the highest and best bidder for cash, as evidenced by sealed bids, the above-described
Bonds drawn against the Special Sidewalk, Curb, Gutter and Alley Approach Fund in the
principal amount of $112,000.
Sealed bids for the purchase of the Bonds will be received until 10:00 a.m., M.T., on
Monday, July 26, 1999, at the office of the Clerk of the Commission in the Municipal
Building, 411 East Main Street, Bozeman, Montana, at which time the bids will be opened
and tabulated. The City Commission of the City will meet at 3:00 P.M. on the same day in
the Commission Room in the Municipal Building to consider the bids and the award of sale
of the Bonds.
PUrDose and Security
The Bonds will be issued for the purpose of financing the engineering, construction,
installation, inspection and administration of sidewalk improvements along particular streets
within the City of Bozeman, Montana, pursuant to the City's 1998A and 19988 Sidewalk
Construction Programs and in accordance with the provisions of Montana Code Annotated,
Title 7, Chapter 12, Parts 41 and 42, as amended (the II Act"). The Bonds will be special,
limited obligations of the City and do not constitute general obligations of the City.
The Bonds are payable primarily from the collection of a special tax or assessment
which is a lien against the assessable real property benefitted by the Improvements to be
undertaken therein or therefor. The special assessments are payable in equal, semiannual
installments over a 5-year term, with unpaid installments of the special assessments bearing
interest at a rate equal, from time to time, to the sum of (i) the average rate of interest borne
by the then outstanding Bonds, plus (ii) one-half of one percent (0.50%) per annum.
The Bonds are further secured by the Special Improvement District Revolving Fund of
the City (the IIRevolving Fund"). The City will agree to make a loan from the Revolving Fund
to the Special Sidewalk, Curb, Gutter and Alley Approach Fund (the IIFund") to make good
any deficiency then existing in the principal and interest accounts therein and to provide
funds for the Revolving Fund by levying a tax or making a loan from the City's general fund
to the extent and for the period authorized by the Act.
Date and TVDe
The Bonds will be dated, as originally issued, as of August 1, 1999, and will be issued
as negotiable investment securities in registered form as to both principal and interest.
Maturities and Form
If issued as serial bonds, the Bonds shall mature, subject to redemption, on July 1 in
the following years and amounts:
Year Amount
2000 $17,000
2001 20,000
2002 25,000
2003 25,000
2004 25,000
B-1
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If issued as amortization bonds, the Bonds will be issued as a single bond or divided
into several bonds, as the Commission may determine, and the principal of the Bonds shall
be payable semiannually on each January 1 and July 1, commencing January 1, 2000, and
continuing through July 1, 2004, subject to prior redemption. Serial bonds shall be in the
denomination of $5,000 each or any integral multiple thereof of single maturities; provided
that one Bond with a stated maturity in 2000 shall be in the principal amount of $7,000.
Amortization bonds shall be preferred.
Redemotion
Mandatorv Redemotion. If on any interest payment date there will be a balance in
the Fund after payment of the principal and interest due on all Bonds drawn against it, either
from the prepayment of special assessments levied for the Improvements or from the
transfer of surplus money from the Construction Account to the Principal Account,
outstanding Bonds, or portions thereof, 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
Fund on that date are subject to mandatory redemption on that interest payment date. The
redemption price shall equal the amount of the principal amount of the Bonds to be redeemed
plus interest accrued to the date of redemption.
Ootional Redemotion. The Bonds are subject to redemption, in whole or in part, at
the option of the City from sources of funds available therefor other than those described
under "Mandatory Redemption" on any interest payment date; provided, however, the Bonds
shall not be called for redemption before July 1, 2001, from the proceeds of refunding
special sidewalk, curb gutter and alley approach bonds or warrants. The redemption price
shall equal the principal amount of the Bonds to be redeemed plus interest accrued to the
date of redemption.
Selection of Bonds for Redemotion. If less than all of the Bonds are to be redeemed,
Bonds shall be redeemed in order of the stated maturities thereof. If less than all Bonds of
a stated maturity are to be redeemed, the Bonds of such maturity shall be selected for
redemption in $5,000 principal amounts selected by the Registrar by lot or other manner it
deems fair, except that the Bond with the stated maturity in 2000 and in the principal
amount of $7,000 shall be redeemed before other Bonds of such stated maturity.
Interest Pavment Dates. Rates
Interest will be payable each January 1 and July 1, commencing January 1, 2000,
to the registered owners of the Bonds as such appear in the bond register as of the close of
business on the 15th day (whether or not a business day) of the immediately preceding
month. All Bonds of the same stated maturity must bear interest from date of original issue
until paid at a single, uniform rate. Each rate must be expressed in an integral multiple of
1/8 or 5/100 of 1 %. No supplemental or UB" coupons or additional interest certificates are
permitted. Interest will be calculated on the basis of a 360-day year consisting of twelve 30-
day months.
Bond Reaistrar. Transfer Aaent
and Paving Agent
The Administrative Services Director of the City will act as bond registrar, transfer
agent and paying agent (the URegistrar"). The bond register will be kept, transfers of
ownership will be effected and principal of and interest on the Bonds will be paid by the
Registrar. The City will pay the charges of the Registrar for such services. The City
reserves the right to appoint a suitable bank or trust company as a successor Registrar.
Deliverv
Within 45 days after the sale, the City will deliver to the Registrar the printed Bonds
ready for completion and authentication. The original purchaser of the Bonds must notify
the Registrar, at least five business days before issuance of the Bonds, of the persons in
whose names the Bonds will be initially registered and the denominations of the Bonds to
be originally issued. If notification is not received by that date, the Bonds will be registered
in the name of the original purchaser and, if serial bonds, will be issued in denominations
corresponding to the principal maturities of the Bonds. On the day of closing, the City will
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furnish to the purchaser the opinion of Bond Counsel hereinafter described, an arbitrage
certification and a certificate stating that no litigation in any manner questioning the validity
of the Bonds is then pending or, to the knowledge of officers of the City, threatened.
Payment for the Bonds must be received by the City in immediately available funds at its
designated depository on the day of closing. The successful bidder shall submit to the Clerk
of the Commission not earlier than 48 hours after the award of sale and not later than the
day of closing a certificate, in form satisfactory to Bond Counsel, as to the initial reoffering
price of each stated maturity of the Bonds and stating that at least ten percent of the
principal amount of such Bonds of each stated maturity has been sold at such respective
prices.
Qualified Tax-Exemot Obliaations
The Bonds will be designated by the City as "'qualified tax-exempt obligations"
within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended
(the "'Code"), and financial institutions described in Section 265(b)(5) of the Code may treat
the Bonds for purposes of Sections 265(b)(2) and 291 (e)(1 )(B) of the Code as if they were
acquired on August 7, 1986.
Leaal Oeinion
An opinion as to the validity of the Bonds and the exclusion of the interest thereon
from gross income for federal income tax purposes and Montana individual income tax
purposes will be furnished by Dorsey & Whitney LLP, of Missoula, Montana, and
Minneapolis, Minnesota, as Bond Counsel. The legal opinion will be delivered at closing.
The legal opinion will state that the Bonds are valid and binding special, limited obligations
of the City enforceable in accordance with their terms, except to the extent to which
enforceability thereof may be limited by the exercise of judicial discretion or by state or
federal laws relating to bankruptcy, reorganization, moratorium or creditors' rights.
Tyee of Bid and Good Faith Deoosit
Sealed bids for not less than par ($112,000) and accrued interest on the principal
sum of $112,000 must be mailed or delivered to the undersigned and must be received at
the office of the Clerk of the Commission prior to the time stated above. Bidders must bid
for all or none of the Bonds. Each bid must be unconditional.
Except for a bid by or on behalf of the Board of Investments of the State of
Montana, a good faith deposit (the "'Deposit") in the form of money, cashier's check,
certified check, bank money order, or bank draft drawn and issued by a federally chartered
or state chartered bank insured by the federal deposit insurance corporation or a financial
surety bond in the sum of $2,240 payable to the order of the City is required for a bid to be
considered. If money, cashier's check, certified check, bank money order, or bank draft is
used, it must accompany the bid and be delivered to the Clerk of the Commission. If a
financial surety bond is used, it must be from an insurance company licensed and qualified
to issue such a bond in the State of Montana and such bond must be submitted to the Clerk
of the Commission, or the City's financial advisor prior to the opening of the bids. The
financial surety bond must identify each bidder whose Deposit is guaranteed by such
financial surety bond. If the Bonds are awarded to a bidder utilizing a financial surety bond,
then that purchaser is required to submit its Deposit to the City in the form of a cashier's
check (or wire transfer such amount as instructed by the City or its financial advisor) not
later than 1 :00 p.m., M.T., on the next business day following the award. If such Deposit
is not received by that time, the financial surety bond may be drawn by the City to satisfy
the Deposit requirement. No interest on the Deposit will accrue to the purchaser. The
Deposit will be applied to the purchase price of the Bonds. In the event the purchaser fails
to honor its accepted bid, the Deposit will be retained by the City as liquidated damages.
The Deposit of the unsuccessful bidders will be returned immediately on award of the Bonds
to the purchaser or after rejection of all bids. Instructions for wiring the Deposit may be
obtained from the City's Administrative Services Director, City of Bozeman, P. O. Box 640,
Bozeman, Montana 59771, (406) 582-2325.
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Award
The bid authorizing the lowest true interest cost (calculated from dated date), will
be deemed the most favorable. In the event that two or more bids state the lowest true
interest cost, the sale of the Bonds will be awarded by lot. No oral bid will be considered.
The City reserves the rights to reject any and all bids, to waive informalities in any bid and
to adjourn the sale.
CUSIP Numbers
The City will assume no fee or obligation for the assignment or printing of CUSIP
numbers on the Bonds or for the correctness of any numbers printed thereon, but will permit
such numbers to be assigned and printed at the expense of the purchaser, if the original
purchaser waives any delay in delivery occasioned thereby.
Continuina Disclosure: ExemDtion
Bidders and other participating underwriters in the primary offering of the Bonds
need not comply with paragraph (b)(5) of Rule 15c2-12 promulgated by the Securities and
Exchange Commission under the Securities Exchange Act of 1934 (the "Rule"), because the
aggregate principal amount of the Bonds and any other securities required to be integrated
with the Bonds is less than $1,000,000. Consequently, the City will not enter into any
undertaking to provide continuing disclosure of any kind with respect to the Bonds.
Information for bidders and bidding forms and instructions for submitting bids by
facsimile may be obtained from the undersigned.
Dated: July 6, 1999.
BY ORDER OF THE CITY
COMMISSION
Robin L. Sullivan
Clerk of the Commission
City of Bozeman, Montana
Publish: July 11, 1999
July 18, 1999
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EXHIBIT B
REVISED NOTICE OF BOND SALE
$112,000 SPECIAL SIDEWALK, CURB, GUTTER AND
ALLEY APPROACH BONDS, SERIES 1999
CITY OF BOZEMAN, MONT ANA
NOTICE IS HEREBY GIVEN that the City of Bozeman, Montana (the "City"), will
sell to the highest and best bidder for cash, as evidenced by sealed bids, the above-described
Bonds drawn against the Special Sidewalk, Curb, Gutter and Alley Approach Fund in the
principal amount of $112,000.
Sealed bids for the purchase of the Bonds will be received until 1 0:00 a.m., M.T.,
on Monday, July 26, 1999, at the office of the Clerk of the Commission in the Municipal
Building, 411 East Main Street, Bozeman, Montana, at which time the bids will be opened
and tabulated. The City Commission of the City will meet at 3:00 P.M. on the same day in
the Commission Room in the Municipal Building to consider the bids and the award of sale
of the Bonds.
Puroose and Securitv
The Bonds will be issued for the purpose of financing the engineering,
construction, installation, inspection and administration of sidewalk improvements along
particular streets within the City of Bozeman, Montana, pursuant to the City's 1998A and
1998B Sidewalk Construction Programs and in accordance with the provisions of Montana
Code Annotated, Title 7, Chapter 12, Parts 41 and 42, as amended (the" Act"). The Bonds
will be special, limited obligations of the City and do not constitute general obligations of the
City.
The Bonds are payable primarily from the collection of a special tax or assessment
which is a lien against the assessable real property benefitted by the Improvements to be
undertaken therein or therefor. The special assessments are payable in equal, semiannual
installments over a 5-year term, with unpaid installments of the special assessments bearing
interest at a rate equal, from time to time, to the sum of (i) the average rate of interest borne
by the then outstanding Bonds, plus (ii) one-half of one percent (0.50%) per annum.
The Bonds are further secured by the Special Improvement District Revolving Fund
of the City (the "Revolving Fund"). The City will agree to make a loan from the Revolving
Fund to the Special Sidewalk, Curb, Gutter and Alley Approach Fund (the "Fund") to make
good any deficiency then existing in the principal and interest accounts therein and to
provide funds for the Revolving Fund by levying a tax or making a loan from the City's
general fund to the extent and for the period authorized by the Act.
Date and TVDe
The Bonds will be dated, as originally issued, as of August 1, 1999, and will be
issued as negotiable investment securities in registered form as to both principal and interest.
Maturities and Form
If issued as serial bonds, the Bonds shall mature, subject to redemption, on July
1 in the following years and amounts:
Year Amount
2000 $1 7,000
2001 20,000
2002 25,000
2003 25,000
2004 25,000
B-1
If issued as amortization bonds, the Bonds will be issued as a single bond or divided
into several bonds, as the Commission may determine, and the principal of the Bonds shall
be payable semiannually on each January 1 and July 1, commencing January 1, 2000, and
continuing through July 1, 2004, subject to prior redemption. Serial bonds shall be in the
denomination of $5,000 each or any integral multiple thereof of single maturities; provided
that one Bond with a stated maturity in 2000 shall be in the principal amount of $7,000.
Amortization bonds shall be preferred.
Redemction
Mandatory Redemction. If on any interest payment date there will be a balance in
the Fund after payment of the principal and interest due on all Bonds drawn against it, either
from the prepayment of special assessments levied for the Improvements or from the
transfer of surplus money from the Construction Account to the Principal Account,
outstanding Bonds, or portions thereof, 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
Fund on that date are subject to mandatory redemption on that interest payment date. The
redemption price shall equal the amount of the principal amount of the Bonds to be redeemed
plus interest accrued to the date of redemption.
Optional Redemction. The Bonds are subject to redemption, in whole or in part, at
the option of the City from sources of funds available therefor other than those described
under IIMandatory Redemption" on any interest payment date; provided, however, the Bonds
shall not be called for redemption before July 1, 2001, from the proceeds of refunding
special sidewalk, curb gutter and alley approach bonds or warrants. The redemption price
shall equal the principal amount of the Bonds to be redeemed plus interest accrued to the
date of redemption.
Selection of Bonds for Redemotion. If less than all of the Bonds are to be redeemed,
Bonds shall be redeemed in order of the stated maturities thereof. If less than all Bonds of
a stated maturity are to be redeemed, the Bonds of such maturity shall be selected for
redemption in $5,000 principal amounts selected by the Registrar by lot or other manner it
deems fair, except that the Bond with the stated maturity in 2000 and in the principal
amount of $7,000 shall be redeemed before other Bonds of such stated maturity.
Interest Pavment Dates. Rates
Interest will be payable each January 1 and July 1, commencing January 1, 2000,
to the registered owners of the Bonds as such appear in the bond register as of the close of
business on the 15th day (whether or not a business dayl of the immediately preceding
month. All Bonds of the same stated maturity must bear interest from date of original issue
until paid at a single, uniform rate. Each rate must be expressed in an integral multiple of
1/8 or 5/100 of 1 %. No supplemental or liB" coupons or additional interest certificates are
permitted. Interest will be calculated on the basis of a 360-day year consisting oftwelve 30-
day months.
Bond Registrar. Transfer Agent
and Pavim;J Aaent
The Administrative Services Director of the City will act as bond registrar, transfer
agent and paying agent (the IIRegistrar"l. The bond register will be kept, transfers of
ownership will be effected and principal of and interest on the Bonds will be paid by the
Registrar. The City will pay the charges of the Registrar for such services. The City
reserves the right to appoint a suitable bank or trust company as a successor Registrar.
Deliverv
Within 45 days after the sale, the City will deliver to the Registrar the printed Bonds
ready for completion and authentication. The original purchaser of the Bonds must notify
the Registrar, at least five business days before issuance of the Bonds, of the persons in
whose names the Bonds will be initially registered and the denominations of the Bonds to
be originally issued. If notification is not received by that date, the Bonds will be registered
in the name of the original purchaser and, if serial bonds, will be issued in denominations
corresponding to the principal maturities of the Bonds. On the day of closing, the City will
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furnish to the purchaser the opinion of Bond Counsel hereinafter described, an arbitrage
certification and a certificate stating that no litigation in any manner questioning the validity
of the Bonds is then pending or, to the knowledge of officers of the City, threatened.
Payment for the Bonds must be received by the City in immediately available funds at its
designated depository on the day of closing. The successful bidder shall submit to the Clerk
of the Commission not earlier than 48 hours after the award of sale and not later than the
day of closing a certificate, in form satisfactory to Bond Counsel, as to the initial reoffering
price of each stated maturity of the Bonds and stating that at least ten percent of the
principal amount of such Bonds of each stated maturity has been sold at such respective
prices.
Qualified Tax-Exemot Obligations
The Bonds will be designated by the City as uqualified tax-exempt obligations"
within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended
(the uCode"), and financial institutions described in Section 265(b)(5) of the Code may treat
the Bonds for purposes of Sections 265(b)(2) and 291 (e)( 1 )(B) of the Code as if they were
acquired on August 7, 1986.
Legal Ooinion
An opinion as to the validity of the Bonds and the exclusion of the interest thereon
from gross income for federal income tax purposes and Montana individual income tax
purposes will be furnished by Dorsey & Whitney LLP, of Missoula, Montana, and
Minneapolis, Minnesota, as Bond Counsel. The legal opinion will be delivered at closing.
The legal opinion will state that the Bonds are valid and binding special, limited obligations
of the City enforceable in accordance with their terms, except to the extent to which
enforceability thereof may be limited by the exercise of judicial discretion or by state or
federal laws relating to bankruptcy, reorganization, moratorium or creditors' rights.
Tvoe of Bid and Good Faith Deoosit
Sealed bids for not less than $108,640 (up to 3 percent discount) and accrued
interest on the principal sum of $112,000 must be mailed or delivered to the undersigned
and must be received at the office of the Clerk of the Commission prior to the time stated
above. Bidders must bid for all or none of the Bonds. Each bid must be unconditional.
Except for a bid by or on behalf of the Board of Investments of the State of
Montana, a good faith deposit (the uDeposit") in the form of money, cashier's check,
certified check, bank money order, or bank draft drawn and issued by a federally chartered
or state chartered bank insured by the federal deposit insurance corporation or a financial
surety bond in the sum of $2,240 payable to the order of the City is required for a bid to be
considered. If money, cashier's check, certified check, bank money order, or bank draft is
used, it must accompany the bid and be delivered to the Clerk of the Commission. If a
financial surety bond is used, it must be from an insurance company licensed and qualified
to issue such a bond in the State of Montana and such bond must be submitted to the Clerk
of the Commission, or the City's financial advisor prior to the opening of the bids. The
financial surety bond must identify each bidder whose Deposit is guaranteed by such
financial surety bond. If the Bonds are awarded to a bidder utilizing a financial surety bond,
then that purchaser is required to submit its Deposit to the City in the form of a cashier's
check (or wire transfer such amount as instructed by the City or its financial advisor) not
later than 1 :00 p.m., M.T., on the next business day following the award. If such Deposit
is not received by that time, the financial surety bond may be drawn by the City to satisfy
the Deposit requirement. No interest on the Deposit will accrue to the purchaser. The
Deposit will be applied to the purchase price of the Bonds. In the event the purchaser fails
to honor its accepted bid, the Deposit will be retained by the City as liquidated damages.
The Deposit of the unsuccessful bidders will be returned immediately on award of the Bonds
to the purchaser or after rejection of all bids. Instructions for wiring the Deposit may be
obtained from the City's Administrative Services Director, City of Bozeman, P. O. Box 640,
Bozeman, Montana 59771, (406) 582-2325.
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Award
The bid authorizing the lowest true interest cost (calculated from dated date), will
be deemed the most favorable. In the event that two or more bids state the lowest true
interest cost, the sale of the Bonds will be awarded by lot. No oral bid will be considered.
The City reserves the rights to reject any and all bids, to waive informalities in any bid and
to adjourn the sale.
CUSIP Numbers
The City will assume no fee or obligation for the assignment or printing of CUSIP
numbers on the Bonds or for the correctness of any numbers printed thereon, but will permit
such numbers to be assigned and printed at the expense of the purchaser, if the original
purchaser waives any delay in delivery occasioned thereby.
Continuina Disclosure: ExemDtion
Bidders and other participating underwriters in the primary offering of the Bonds
need not comply with paragraph (b)(5) of Rule 15c2-12 promulgated by the Securities and
Exchange Commission under the Securities Exchange Act of 1934 (the "Rule"), because the
aggregate principal amount of the Bonds and any other securities required to be integrated
with the Bonds is less than $1,000,000. Consequently, the City will not enter into any
undertaking to provide continuing disclosure of any kind with respect to the Bonds.
Information for bidders and bidding forms and instructions for submitting bids by
facsimile may be obtained from the undersigned.
Dated: July 16, 1999.
BY ORDER OF THE CITY
COMMISSION
Robin L. Sullivan
Clerk of the Commission
City of Bozeman, Montana
Publish: July 18, 1999
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