Loading...
HomeMy WebLinkAboutResolution 2920 Authorizing bond sale for SID 656 "- --..-- ~-_._.._-,._. -.,.. --..--...-.. --- 0 , -" , "'- COMMISSION RESOLUTION NO. 2920 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, RELATING TO SPECIAL IMPROVEMENT DISTRICT NO. 656; AUTHORIZING AND PROVIDING FOR THE ISSUANCE AND SALE OF SPECIAL IMPROVEMENT DISTRICT'NO. 656 BONDS, IN THE AMOUNT OF $392,000 FOR THE PURPOSE OF ACCOMPLISHING THE ENGINEERING DESIGN, CONSTRUCTION, INSPECTION AND ENGINEERING CERTIFICATION OF A 10.INCH WATER MAIN AND ALL NECESSARY APPURTENANCES TO SERVE ALL LOTS AND TRACTS LOCATED IN THE BURRUP ANNEXATION TO THE CITY OF BOZEMAN, MONTANA. BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, as follows: Section 1. Recitals. The City of Bozeman has created Special Improvement District No. 656 (the District) for the purpose of financing the costs of accomplishing the engineering design, construction, inspection and engineering certification of a 10-inch water main and all necessary appurtenances to serve all lots and tracts located in the Burrup Annexation to the City of Bozeman, Montana (the Improvements). The amount of bonds necessary to be sold to pay the District's share of the Improvements, and all incidental costs related thereto, is $392,000. The City Commission of the City of Bozeman has full power and authority to issue the Bonds. Section 2. Term of Bonds. Pursuant to the authority described above, this City Commission of the City of Bozeman shall issue and sell the Bonds drawn against the funds of Special Improvement District No. 656 in an aggregate principal amount of $392,000. The Bonds shall be dated as of August 1, 1993, and shall bear interest, payable semi-annually on January 1 and July 1 of each year commencing January 1, 1994, at the rate or rates designated by the successful bidder at public sale herein authorized and as approved by this City Commission. If issued as serial bonds, the Bonds shall mature on January 1 in each of the following years and amounts: Year Amount 1994 7,000 1995 20,000 1996 20,000 1997 20,000 1998 20,000 1999 20,000 2000 20,000 2001 20,000 2002 20,000 2003 20,000 2004 20,000 2005 20,000 2006 20,000 2007 20,000 2008 25,000 2009 25,000 2010 Q 25,000 2011 25,000 2012 25,000 ..---...----- 0 < < , , If issued as amortization bonds, the bonds will be issued as a single bond or divided into several bonds, as the City Commission may determine at the time of sale, with principal of the Bonds payable annually on January 1, commencing on January 1, 1994, and, subject to prior redemption and prepayment, continuing through January 1, 2012. Serial bonds shall be in the denomination of $5,000 each or any integral multiple or fraction thereof of single maturities. The Bonds, whether serial or amortization, shall be issued only as fully registered bonds and shall be executed by the manual or facsimile signatures of the City Manager, Director of Finance and Clerk of the City Commission. Amortization bonds shall be preferred. Section 3. ONotice of Sale. The Bonds shall be opened on July 12, 1993, at 10:00 a.m., M.D.T., at the office of the Clerk of the Commission, and shall be sold at a regular meeting of the City Commission of the City of Bozeman on July 12, 1993, at 3:30 o'clock p.m., M.D.T., in the Commission Room of the Municipal Building, 411 East Main Street, Bozeman, Montana. The Clerk of the Commission is authorized and directed to cause the notice of the sale to be published, as required by Section 7-12-4204, M.C.A., in the Bozeman Daily Chronicle, once a week for two (2) successive weeks preceding the week which contains the date of sale, and in any other newspapers as may be determined by the City Commission of the City of Bozeman. The notice of sale attached hereto as Exhibit A (the Notice of Sale) contains further terms and conditions for the sale of the Bonds which terms and conditions are hereby ratified , 0 and made a part hereof. The Notice of sale shall be in substantially the form set forth in Exhibit A. " PASSED AND ADOPTED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 21 st day of June 1993. ~~d~ ~~SW N Mayor ATTEST: ~J~ ROBIN L. SULLIVAN Clerk of the Commission 0 ., . - 2 - '. . , CERTIFICATION OF MINUTES RELATING TO $392,000.00 Special Improvement District No. 656 Bonds Issuer: City of Bozeman, Gallatin County, Montana Governing Body: City Commission Kind, date, time and place of meeting: A regular meeting held on July 12, 1993, at 3:30 p.m., in the Commission Room of the Municipal Building, 411 East Main Street, in Bozeman, Montana. Members present: Mayor Swanson, Commissioner Vincent and Commissioner Knapp Members absent: Commissioner Frost and Commissioner Stiff Documents attached: Minutes of said meeting (pages): COMMISSION RESOLUTION NO. 2920 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA. RELATING TO SPECIAL IMPROVEMENT DISTRICT NO. 656; AUTHORIZING AND PROVIDING FOR THE ISSUANCE AND SALE OF SPECIAL IMPROVEMENT DISTRICT NO. 656 BONDS, IN THE AMOUNT OF $392,000 FOR THE PURPOSE OF ACCOMPLISHING THE ENGINEERING DESIGN, CONSTRUCTION, INSPECTION AND ENGINEERING CERTIFICATION OF A 10-INCH WATER MAIN AND ALL NECESSARY APPURTENANCES TO SERVE ALL LOTS AND TRACTS LOCATED IN THE BURRUP ANNEXATION TO THE CITY OF BOZEMAN, MONTANA. I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the obligations referred to in the title of this certificates, certify that the documents attached hereto, as described above, have been carefully compared with the original records of said corporation in my legal custody, from which they have been transcribed; that said documents are a correct and complete transcript of the minutes of a meeting of the governing body of said corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at said meeting, so far as they relate to said obligations; and that said meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice of such meeting given as required by law. WITNESS my hand officially as such recording officer this 21 st day of June 1 993. (iF .I L~~ R IN L. SULLIVAN Clerk of the Commission -- . '. EXHIBIT A NOTICE OF SALE OF BONDS of $392,000.00 SPECIAL IMPROVEMENT DISTRICT NO. 656 OF THE CITY OF BOZEMAN, MONTANA NOTICE HEREBY GIVEN by the City Commission of the City of Bozeman, Montana, that bids will be received until 10:00 a.m., M.D.T., on the 12th day of July, 1993, at which time the bids will be opened and read in the office of the Clerk of the Commission. The City Commission, at a regular meeting to be held on the 12th day of July, 1993, at the hour of 3:30 o'clock p.m., M.D.T., at the Commission Room in the City Hall, 411 East Main Street, Bozeman, Montana, will sell to the best bidder for cash, either amortization or serial bonds drawn against the funds of Special Improvement District No. 656 in the total aggregate principal amount of $392,000.00 Bonds (the Bonds) for the purpose of financing the engineering design, construction, inspection and engineering certification of a 10.inch water main, all necessary appurtenances, and all incidental costs related thereto, to serve all lots and tracts located in the Burrup Annexation "to the City of Bozeman, Montana. THE BONDS Amortization bonds will be the first choice and serial bonds will be the second choice of the City of Bozeman. If amortization bonds are sold and issued, the Bonds will be issued as a single bond or divided into several bonds, as the City of Bozeman may determine at the time of sale, interest to be payable in equal semi-annual installments on each January 1 and July 1, commencing on January 1, 1994, and sUbject to prior redemption and prepayment, continuing through July 1, 2012. Principal shall be payable annually, commencing January 1, 1994, and subject to prior redemption and prepayment, continuing through January 1, 2012. If serial bonds are issued and sold, the Bonds will be issued in the denomination of $5,000 each or any integral multiple or fraction thereof of single maturities. The serial bonds will mature, subject to prior redemption and prepayment, on January 1, in the following years and amounts: Year Amount 1994 7,000 1995 20,000 1996 20,000 1997 20,000 1998 20,000 1999 20,000 2000 20,000 2001 20,000 2002 20,000 2003 20,000 2004 20,000 2005 20,000 2006 20,000 2007 20,000 ~ - --- " ." 2008 25,000 2009 25,000 2010 25,000 ,2011 25,000 2012 25,000 The Bonds, whether amortization or serial bonds, will be issued as fully registered bonds, will bear an original issue date and be registered as of August 1, 1993, and will bear interest at the rate or rates designated by the successful bidder at the sale. Interest will be payable semiannually on January 1 and July 1 of each year commencing January 1, 1994. The Bonds will be issued as fully registered bonds only. REDEMPTION All bonds are subject to redemption and prepayment at the option of the City of Bozeman, in order of registration, on any interest payment diite whenever there is any balance in the District Fund after payment of interest due on all Bonds, either from the prepayment of special assessments levied in the District or from the transfer of surplus monies in the Construction Account. The Bonds shall not be callable from the proceeds of an issue of refunding bonds prior to the expiration of one-third of their term. SECURITY The Bonds are not general obligations of the City of Bozeman. The Bonds are payable from the collection of special assessments which are levied against and become a lien on the real property within the District. The assessments to be levied by the City of Bozeman will bear interest at an annual rate equal to the sum of one-half of one percent per annum plus the average annual interest rate borne by the Bonds. " The Bonds shall also be secured by the City of Bozeman's Special Improvement District Revolving Fund (the Revolving Fund). The City of Bozeman will agree to make a loan from the Revolving Fund to the District Fund to make good any deficiency then existing in the Interest and Bond Account of the District Fund and to provide funds for the Revolving Fund by levying a tax or making a loan from the General Fund to the extent authorized by law. The City of Bozeman has outstanding as of the date hereof $2,630,500 principal amount of Special Improvement District Bonds. The City has a cash balance of $430,579 in its Special Improvement District Revolving Fund. In light of a Memorandum and Order issued by the District Court of the 1 st Judicial District in Carbon County Y. Dain Bosworth, Inc.. et al. no assurance can be given that, in a given circumstance, the City will be obligated to make loans or advances to the District Fund from available 0 funds in the Revolving Fund in order to pay principal and interest on the Bonds when due. The Bonds shall also be secured by a pledge of the Net Revenues of the Water System, subordinate only to the pledge thereof to the payment of the Outstanding Bonds and any additional ----- . . .. ., parity bonds and the funding of the debt service reserve fund therefor. In the event that one business day preceding an interest or principal payment date on the Bonds, amounts on deposit in the District Fund (representing collections of special assessments, proceeds of loans from the Revolving Fund or other funds) are insufficient to pay the principal of or interest on the Bond payable on such payment date, then the City shall, if no default is then existing under the Water Bond Resolution, transfer from amounts on hand in the Surplus Account and the Replacement and Depreciation Account (in that order D of priority and solely from such accounts) in the Water System Fund of the City to the District Fund the amount then required to remedy the insufficiency therein. The District Fund will be under no obligation to reimburse the Water System Fund for any such transfer. REGISTRAR AND PAYING AGENT Principal of and interest on the bonds will be payable at the principal office of the Director of Finance, City of Bozeman, Montana (the Bond Registrar and Paying Agent). BIDS AND AWARD OF SALE Terms of Bid. Each bid must be all but not less than all of the Bonds. All Bonds maturing on the same date must bear basic interest from the date of issue until paid at a single, uniform rate, expressed in integral multiples of 1/20 of 1 percent per annum. Supplemental or "B" interest shall not D exceed two and one-half percent per annum. No bid for less than par value with accrued interest on the principal amount of the Bonds to the date of delivery of the Bonds will be considered. Receict of Bids and Award of Sale. Sealed bids for the Bonds will be received by the Clerk of the Commission, of the City of Bozeman, Montana, until 10:00 a.m., M.D.T., on July 12, 1993. Each envelope must be marked as follows: "Bid for $392,000.00 Special Improvement District No. 656 Bonds" and must indicate the name and address of the bidder or, in the case of a group of bidders, of the representative. Basis of Award. The award, if any, will be made to the bidder whose bid results in the lowest net interest cost payable on the Bonds. The City of Bozeman reserves the right to reject any and all bids and to waive any informality or irregularity in any and all bids. D Good Faith Check. Each bid must be accompanied by lawful money of the United States of America or a cashier's check, certified check, bank money order or bank draft, in the amount of $7,840.00 drawn and issued by a national banking association located in Montana or by any banking corporation incorporated under the laws of Montana, payable to the City of Bozeman. The bid security of the unsuccessful bidders will be returned immediately on award of the Bonds to the successful bidder or after the rejection of all bids. The bid security of the successful bidder will be deposited by the Director of Finance on the date of sale, and at the time of the delivery of the Bonds such security will ---.--------------.----. " . 'oil' : . . . , """ be applied against the purchase price for the Bonds or will be retained as liquidated damages upon the failure of the successful bidder to take and pay for the Bonds in accordance with the terms of its bid. No interest will be allowed on the bid security. Additional Information. Additional information regarding the District and the Bonds may be obtained from the Clerk of the City Commission, City of Bozeman, P.O. Box 640, Bozeman, Montana 59715, telephone (406) 586-3321. DELIVERY Bonds. Delivery of the Bonds will be made payable therefore in immediately available funds 0 within 45 days of the date of sale at Bozeman, Montana, or at such other location as the purchaser shall request and the City of Bozeman shall approve. The charge of the delivery agent will be paid by the purchaser. The cost of the printing of the bonds will be paid by the District. Closina Certificates and Ooinions. At the time of delivery of the Bonds the District will deliver to the successful bidder a legal opinion, which is to be paid for by the District. The legal opinion will state that the Bonds are valid and binding special obligations of the City of Bozeman, and the interest thereon is exempt from federal and Montana state income tax. The legal opinion might not include an opinion on the enforceability of the obligation of the City to make loans or advances from the Revolving Fund to the District Fund as may be required to pay principal of and interest on the Bonds when due. A copy of the legal opinion will be printed on the reverse side of the Bonds at the request 0 of the purchaser. The District will deliver a certificate stating that no litigation in any manner J questioning the validity of the Bonds in then pending, or to the best knowledge of the City threatened, t . along with other customary closing certificates. ROBIN L. SULLIVAN Clerk of the Commission Legal Ad Publication Dates: Sunday, June 27, 1993 Sunday, July 4, 1 993 Q -- '-L