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HomeMy WebLinkAboutResolution 3047 Authorize sale of $5 million GO bonds RESOLUTION NO. 3047 RESOLUTION RELATING TO $5,000,000 GENERAL OBLIGATION BONDS, SERIES 1995; AUTHORIZING THE ISSUANCE AND CALLING FOR THE PUBLIC SALE THEREOF BE IT RESOLVED by the City Commission (the "Commission") of the City of Bozeman, Montana (the "City"), as follows: Section 1. Recitals. The electors of the City at an election duly called, noticed and held on November 8, 1994, at which fifty-six and eight tenths (56.8%) percent of the registered electors voted, by a vote of 4,681 in favor and 3,413 opposed, authorized the City to issue and sell $5,000,000 in aggregate principal amount of general obligation bonds (the "Bonds") for the purpose of financing the implementation of a series of transportation projects contained in the Bozeman Urban Transportation Plan 1993 Update and paying costs associated with the sale and issuance of the Bonds (the "Project"). The indebtedness evidenced by the Bonds and all other indebtedness of the City do not exceed 28 percent of the taxable value of the property subject to taxation by the City as ascertained by the last completed assessment for state, county and school taxes previous to this date. On December 5, 1994, this Commission adopted Resolution No. 3030, evidencing its intention to proceed with the sale of the Bonds. The City has full power and authority to issue the Bonds. Section 2. Term of Bonds. Pursuant to the authority described in Section 1, this Commission hereby authorizes the issuance and sale of Bonds of the City in the aggregate principal amount of $5,000,000 for the purpose of financing the costs of the Project. The Bonds shall be dated, as originally issued, as of April 15, 1995, and shall bear interest payable semiannually on January 1 and July 1 of each year, commencing January 1, 1996, at a rate or rates designated by the successful bidder and approved by this Commission; with the maximum difference between highest and lowest rate of interest not exceeding three percent (3.00%) per annum and the rates expressed in integral multiples of 1/8 or 1/20 of one percent (1.00%). No rate of interest on the Bonds shall exceed 7.00% per annum. No supplemental or "B" coupon interest is allowable. If issued as serial bonds, the Bonds shall mature on July 1 in each of the following years and amounts: -1- Year Amount Year Amount 1996 $ 85,000 2006 $270,000 1997 155,000 2007 285,000 1998 170,000 2008 300,000 1999 180,000 2009 320,000 2000 195,000 2010 335,000 2001 205,000 2011 355,000 2002 215,000 2012 380,000 2003 230,000 2013 400,000 2004 240,000 2014 425,000 2005 255,000 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 installments on each January 1 and July 1, commencing January 1, 1996 and concluding July 1,2014, 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. 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, the City Manager and the Clerk of the Commission. Section 3. Public Sale. The Bonds shall be sold at a public competitive sale which is hereby called and shall be held at a special meeting of this Commission on April 4, 1995, at 12:15 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 7-7-4252 and 17-5-106, in 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 in substantially the form set forth as Exhibit B to this resolution 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, including the redemption provisions set forth therein. Section 4. Official Statement. The Clerk of the Commission and other officers of the City are hereby authorized and directed to prepare on behalf of the City an official statement to be distributed to potential purchasers of the Bonds. Such official statement shall contain the terms and conditions of sale set forth in the -2- notice of sale adopted in Section 3 and such other information as shall be advisable and necessary to describe accurately the City and the security for, and terms and conditions of, the Bonds. Section 5. Proceedings to the Attorney General. The Clerk of the Commission is hereby authorized and directed to furnish a certified copy of all proceedings taken by the City with respect to the issuance of the Bonds to the Attorney General for examination and request a report as to the validity of the Bonds, as required by Montana Code Annotated, Section 7-7-101. Adopted this 20th day of March, 1995. (?~J.J~ Clerk of the Commission -3- ... . n_..._..____ EXHIBIT A TERMS AND CONDITIONS OF SALE $5,000,000 General Obligation Bonds, Series 1995 City of Bozeman, Montana NOTICE IS HEREBY GIVEN by the City Commission (the "Commission") of the City of Bozeman, Montana (the "City") that the City will receive at the office of the Clerk of the Commission of the City sealed bids for cash or evidence of a financial surety bond, for the purchase of either amortization or serial bonds of the City in the total principal amount of $5,000,000 for the purpose of financing the costs of implementation of a series of transportation projects contained in the Bozeman Urban Transportation Plan 1993 Update and paying costs associated with the sale and issuance of the bonds until 11:00 a.m., Mountain Daylight Time, on Tuesday, April 4, 1995, whereupon the bids will be opened and tabulated by the Clerk of the Commission and presented to the Commission at its special meeting at 12:15 p.m., Mountain Daylight Time, on the same day, in the Conference Room in the City Hall, 411 East Main, Bozeman, Montana. The Bonds will be issued as fully registered bonds only and shall be executed by the manual or facsimile signatures of the Mayor, the City Manager and the Clerk of the Commission. Amortization bonds will be the first choice and serial bonds will be the second choice of the City. THE BONDS The Bonds shall be dated, as originally issued, as of April 15, 1995, and shall bear interest payable semiannually on January 1 and July 1 of each year, commencing January 1, 1996, at a rate or rates expressed in integral multiples of 1/8 or 1/20 of one percent designated by the successful bidder and approved by the Commission; provided that no rate of interest shall exceed seven percent (7.00%) per annum, with the maximum difference between the highest and lowest rates of interest not exceeding three percent (3.00%) per annum. No supplemental or "B" coupons or additional interest certificates are permitted. If issued as serial bonds, the Bonds shall mature on July 1 in each of the following years and amounts: A-I --------- . . -- -.. --.- -. -.- Year Amount Year Amount 1996 $ 85,000 2006 $270,000 1997 155,000 2007 285,000 1998 170,000 2008 300,000 1999 180,000 2009 320,000 2000 195,000 2010 335,000 2001 205,000 2011 355,000 2002 215,000 2012 380,000 2003 230,000 2013 400,000 2004 240,000 2014 425,000 2005 255,000 If issued as amortization bonds, the Bonds will be issued as a single bond or divided into several bonds, as the City may determine at the time of the sale, and the principal of and interest on the Bonds shall be payable semiannually in equal installments on each January 1 and July 1, commencing January 1, 1996 and concluding July 1,2014, 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. Amortization bonds are preferred. Bonds with stated maturities on or after July 1, 2006 will be subject to redemption on January 1,2005, and any business day thereafter, at the option of the City, from such maturities and in such principal amounts as the City may designate and within a stated maturity in $5,000 principal amounts selected by lot or other manner deemed fair, at a redemption price equal to the principal amount thereof to be redeemed plus interest accrued to the redemption date. The Bonds will be issued by means of a book-entry system with no physical distribution of the Bonds made to the purchasers. The Bonds will be issued to The Depository Trust Company, New York, New York ("DTC"), as securities depository, and immobilized in its custody. Ownership of the Bonds in principal amounts of $5,000 or integral multiples thereof will be effected under the book-entry system, with transfer of ownership effected on the records of DTC and its participants, pursuant to rules and procedures established by DTC and its participants. So long as DTC or its nominee, Cede & Co., is the registered owner of the Bonds, the principal of and interest on the Bonds will be paid, in immediately available funds, directly to DTC or such nominee as registered owner of the Bonds. Transfer of principal of and interest payment to Beneficial Owners by DTC Participants will be the responsibility of such participants and other nominee of Beneficial Owners. The City will not be responsible or liable for maintaining, supervising or reviewing the records maintained by DTC, its participants or persons acting through such participants. A-2 --... ....--.... "..--... PURPOSE AND SECURITY The Bonds will be issued for the purpose of financing the costs of implementation of a series of transportation projects contained in the Bozeman Urban Transportation Plan 1993 Update and paying costs associated with the sale and issuance of the Bonds, in accordance with the provisions of Montana Code Annotated, Title 7, Chapter 7, Part 42, as amended. The Bonds will be general obligations of the City to the payment of which the full faith, credit and taxing power of the City will be pledged. Bidders should consult a copy of the Preliminary Official Statement for a discussion of the security for the Bonds and the opinion of Bond Counsel relating to the Bonds. BOND REGISTRAR, TRANSFER AGENT AND PAYING AGENT The City will name a bond registrar, transfer agent and paying agent (the "Registrar"). 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 remove the Registrar and to appoint a successor. DELIVERY The Bonds. Delivery of the Bonds will be made against payment therefor in immediately available funds on or near April 27, 1995, in New York, New York, through The Depository Trust Company, or at such other location as the purchaser (the "Purchaser") shall request and the City shall approve. The charge of any delivery agent must be paid by the Purchaser. The City will provide for the assignment and printing of CUSIP numbers on the Bonds, but will assume no responsibility for the correctness of the CUSIP numbers printed thereon. As a condition of delivery, the Purchaser must certify to the City in writing the initial reoffering prices of the Bonds. Legal Opinion and Closing Certificates. At the time of delivery of the Bonds the City will also deliver to the Purchaser the legal opinion of Dorsey & Whitney of Minneapolis, Minnesota and Missoula, Montana. The legal opinion will state inter alia that the Bonds are valid and binding general obligations of the City, in accordance with their terms. A copy of the legal opinion will be printed on the reverse side of the Bonds. Dorsey & Whitney will express no opinion with respect to the accuracy, completeness or sufficiency of the Official Statement. The City will also deliver, at the time of delivery of the Bonds, certificates stating in effect that no litigation in any manner questioning the validity of or security for the A-3 Bonds is then threatened or pending; that the Official Statement, as of its date, does not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements contained therein, in light of the circumstances under which they were made, not misleading; that there has been no material adverse change (not in the ordinary course of operations of the City) in the condition, financial or otherwise, of the City from that set forth in or contemplated by the Official Statement; and other customary closing certificates. QUALIFIED TAX-EXEMPT OBLIGATIONS 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. BIDDING AND SALE PROCEDURES Submission of Bids. Bids must be on the Official Bid form, a copy of which may be obtained from the Financial Advisor and enclosed in a sealed envelope marked as follows: "Bid for $5,000,000 General Obligation Bonds, Series 1995, City of Bozeman - opening April 4, 1995, 11:00 a.m., Mountain Daylight Time." Each envelope when delivered must indicate on the outside the name and address of the bidder, or in the case of a group of bidders, of the representative. Bids may be submitted by facsimile to the Clerk of the Commission at (406) 582-2323 until 10:45 a.m., Mountain Daylight Time, on Tuesday, April 4, 1995. Basis of Award. The Bonds will be sold for not less than their par value with accrued interest to the date of delivery, and all bidders must state the lowest rate or rates of interest at which they will purchase the Bonds and the purchase price therefor. The award of sale of the Bonds will be made to the responsible bidder whose bid reflects the lowest interest rate, to be determined on a true interest cost (TIC) basis. The City's computation of the true interest cost of each bid, in accordance with customary practice, will be controlling. The City will accept sealed bids only. The City reserves the right to reject any and all bids and to sell the Bonds at private sale and to waive any informality and irregularity in any and all bids. Good Faith Deposit. 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 $100,000 payable to the order of the City of Bozeman is required for each bid to be considered. If money, cashier's check, certified check, bank money order, or bank draft is used, it must A-4 accompany each bid. 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 City of Bozeman or its 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., Mountain Daylight Time, 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. No interest will be allowed on the Deposit. 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 Deposit may be obtained from the City's Financial Advisor, Dain Bosworth Incorporated, P. O. Box 364, Helena, Montana 59624, (406) 442-8099. Dain Bosworth Incorporated will not bid on the Bonds. PRINTING OF BONDS; REGISTRAR AND PAYING AGENT FEES; AND CUSIP NUMBERS The City will pay for the costs of DTC, the fees and expenses of Bond Counsel, and the fees and charges of the Registrar. The City will apply for CUSIP numbers but will assume no obligation for the printing of CUSIP numbers on the Bonds or for the correctness of any numbers printed thereon. OFFICIAL STATEMENT Within seven business days after the sale the City will furnish to the Purchaser without charge 50 copies of the final official statement for the Bonds. Additional copies of the final official statement may be obtained by the Purchaser from the City at the expense of the Purchaser. Information for bidders and bidding forms may be obtained from the undersigned or from Dain Bosworth Incorporated, in Helena, Montana, telephone (406) 442-8099, financial advisor to the City. Clerk of the Commission A-5 ..___., ._n__._______ .----- EXHIBIT B NOTICE OF BOND SALE $5,000,000 General Obligation Bonds, Series 1995 City of Bozeman, Montana NOTICE IS HEREBY GIVEN that the City Commission (the "Commission") of the City of Bozeman, Montana (the "City") will receive sealed bids for cash or evidence of a financial surety bond, at the office of the Clerk of the Commission in the City Hall, 411 East Main, Bozeman, Montana, for the above- described Bonds until 11:00 a.m., Mountain Daylight Time, on Tuesday, April 4, 1995. The bids will be opened and tabulated by the Clerk of the Commission and presented to the Commission at its special meeting at 12:15 p.m., Mountain Daylight Time, on the same day in the Conference Room of the City Hall, 411 East Main, Bozeman, Montana. The Bonds will be issued either as amortization or serial bonds of the City in the total amount of Five Million Dollars ($5,000,000) for the purpose of financing the cost of implementation of a series of transportation projects contained in the Bozeman Urban Transportation Plan 1993 Update and paying costs associated with the sale and issuance of the Bonds. Amortization bonds will be the first choice and serial bonds will be the second choice of the City. If amortization bonds are sold and issued, the entire issue may be put into one single bond or divided into several bonds, as the Commission may determine at the time of sale, both principal and interest to be payable in semiannual installments during a term of not more than 19 years. If serial bonds are issued and sold, they will be issuable in the amount of $5,000 or any integral multiple thereof, and will mature on July 1 in the following years and amounts: Year Amount Year Amount 1996 $ 85,000 2006 $270,000 1997 155,000 2007 285,000 1998 170,000 2008 300,000 1999 180,000 2009 320,000 2000 195,000 2010 335,000 2001 205,000 2011 355,000 2002 215,000 2012 380,000 2003 230,000 2013 400,000 2004 240,000 2014 425,000 2005 255,000 B-1 . . The Bonds, whether amortization or serial bonds will be dated, as originally issued, as of April 15, 1995, and will bear interest at a rate or rates expressed in integral multiples of 1/8 or 1/20 of one percent (1.00%) designated by the successful bidder and approved by this Commission; provided that no rate of interest shall exceed seven percent (7.00%) per annum, with the maximum difference between the highest and lowest rate of interest not to exceed three percent (3.00%) per annum. No supplemental or "B" coupons or additional interest certificates are permitted. Interest will be payable on each January 1 and July I, commencing January I, 1996, to the registered owners of the Bonds appearing of , record in the Bond Register as of the 15th day of the immediately preceding month. The Bonds maturing on or after July 1,2006 will be subject to redemption and prepayment at the option of the City on January t 2005, and any business day thereafter, from such maturities and in such principal amounts as the City may designate and within a maturity by lot or other manner deemed fair, at a redemption price equal to the principal amount to be redeemed plus accrued interest to the redemption date. The Bonds will be issued by means of a book-entry system with no physical distribution of the Bonds made to the purchasers. The Bonds will be issued to The Depository Trust Company, New York, New York ("DTC"), as securities depository, and immobilized in its custody. Ownership of the Bonds in principal amounts of $5,000 or integral multiples thereof will be effected under the book-entry system, with transfer of ownership effected on the records of DTC and its participants, pursuant to rules and procedures established by DTC and its participants. So long as DTC or its nominee, Cede & Co., is the registered owner of the Bonds, the principal of and interest on the Bonds will be paid, in immediately available funds, directly to DTC or such nominee as registered owner of the Bonds. Transfer of principal of and interest payment to Beneficial Owners by DTC Participants will be the responsibility of such participants and other nominee of Beneficial Owners. The City will not be responsible or liable for maintaining, supervising or reviewing the records maintained by DTC, its participants or persons acting through such participants. 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 Bonds will be sold for not less than their par value with accrued interest, and all bidders must state the lowest rate or rates of interest at which they will purchase the Bonds and the purchase price therefor. The Bonds shall be sold by sealed bids. The Commission reserves the right to reject any and all bids and to sell the Bonds at private sale. B-2 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 $100,000 payable to the order of the City of Bozeman is required for each bid to be considered. If money, cashier's check, certified check, bank money order, or bank draft is used, it must accompany each bid. 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 City of Bozeman or its 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 (the "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., Mountain Daylight Time, 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. No interest will be allowed on the Deposit. The Deposit of the unsuccessful bidders will be returned immediately on award of the Bonds to the Purchaser or after rejection of all bids. A legal opinion as the validity of the Bonds and the tax-exemption of interest thereon will be furnished by Dorsey & Whitney P.L.L.P., of Missoula, Montana and Minneapolis, Minnesota. Copies of a statement of Terms and Conditions of Sale, Preliminary Official Statement and additional information may be obtained from the Clerk of the Commission and Dain Bosworth Incorporated, financial advisor to the City. Prospective bidders should consult the Terms and Conditions of Sale and the Preliminary Official Statement for a description of the Bonds, and the security therefor, and the legal opinion. Dated: , 1995. /s/ Robin L. Sullivan Clerk of the Commission Publish: B-3 -