HomeMy WebLinkAboutResolution 2740 Authorizing issuance of water bonds: 3-13-89
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CERTIFICATION OF MINUTES
RELATING TO
$5,625,000 WATER SYSTEM REVENUE REFUNDING BONDS, SERIES
1989
Issuer: City of Bozeman, Montana
Governing Body: City Commission
Kind, date, time and place of meeting:
A regular meeting held
on March 13, 1989,
at 2:00 o'clock p.m. at the
commission
Room in city Hall
.
Members present: commissioner Vant Hull, Commissioner Martel, Commissioner
Goehrung and Mayor Pro Tempore Hawks
Members absent: Hayor stiff
Documents attached:
Minutes of said meeting
(pages): through
including:
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RESOLUTION NO.
2740
RESOLUTION RELATING TO
$5,625,000 WATER
SYSTEM REVENUE REFUNDING BONDS,
SERIES
1989; AUTHORIZING THE
ISSUANCE AND
AWARDING THE SALE
THEREOF
I, the undersigned,
being the duly qualified and acting
recording officer of the municipality
issuing the obligations
referred to in the title of
this certificate, certify that
the
documents attached hereto, as
described above, have been
carefully compared with the original records of the municipality
in my legal custody, from which they have
been transcribed;
that the documents are
a correct and complete transcript of
the minutes of a meeting of the governing body at the meeting,
insofar as they relate to the obligations;
and that the 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 13th day of March, 1989.
~~oI~
Clerk of the Commission
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c,
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RESOLUTION NO.
2740
RESOLUTION RELATING TO
$5,625,000 WATER
SYSTEM REVENUE REFUNDING BONDS,
SERIES
1989; AUTHORIZING THE
ISSUANCE AND
AWARDING THE SALE
THEREOF
BE
IT RESOLVED by the City Commission of the City
of Bozeman, Montana (the City),
as follows:
Section l.
Authorization. The City pursuant to
authority conferred by Montana Code Annotated, Title
7,
Chapter 7, Parts 44
and 45, as amended (the Act),
and other
laws of the State of Montana, has
established and presently
owns and operates a municipal water
system (the System). Under
the provisions of the Act,
the City is authorized to issue
and
sell its revenue bonds payable
during a term not exceeding forty
years from their date of issue,
to provide funds for
the
reconstruction, improvement,
betterment and extension of the
System and to refund its revenue bonds
issued for such purpose;
provided that the bonds and the
interest thereon are to be pay-
able solely out of the
net income and revenues
to be derived
from rates, fees and charges
for the services,
facilities and
commodities furnished by the undertaking, and are not to
create
any obligation for the payment of which taxes may be
levied
except to pay for services
provided by the System to the City.
Section 2 .
Outstanding Bonds. In accordance with
the authorization described .
Section 1 and pursuant to
ln
Ordinance No. 1115 adopted by the Commission
on November 22,
1982, the City issued and
sold its Water System Revenue Bonds,
dated as of December 1,
1982, currently outstanding in the
aggregate principal amount of $4,275,000
(the Series 1982
Bonds) ,
for the purpose of financing part of
the costs of construction
of improvements to the System and refunding certain outstanding
revenue bonds of the City.
No other bonds or indebtedness
are
outstanding that are payable
from revenues of the
System.
Section 3 .
The Project. After investigation of
the
facts and as authorized by
the Act, this Commission has
determined it to be necessary
and desirable and ln the best
interests of the City
to acquire and construct improvements
to the System (the
proj ect) . The Project will
consist of
improvements to the System,
including improvements of
the water
plant to increase production capacity
and replacement of
watermains. The total
cost of the project, including
construction, engineering,
legal and administration
fees and
expenses and a reasonable
allowance for contingencies,
1S
presently estimated to be $1,000,000.
The City will finance
the Project from proceeds of
the Series 1989
Bonds herein
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authorized. All acts of
this Commission and the City and its
officers and employees with respect authorizing, constructing
and financing the project heretofore
taken and done and not
inconsistent with this Resolution are hereby
ratified and
confirmed.
Section 4.
Issuance and Sale of the Series 1989
Bonds. This Commission has investigated the
facts necessary
and hereby finds, determines and declares
it to be necessary
and desirable for the City to lssue
its $5,625,000 Water
System
Revenue Refunding Bonds, Series 1989
(the Series 1989
Bonds)
for the purpose of providing funds, which with available
amounts
in the Water System Fund of the City,
will be used ( 1 )
to refund
in advance of their stated maturities
all of the outstanding
Series 1982 Bonds, (2 )
to pay costs of the project,
( 3 ) to fund
a reserve fund for the Series 1989
Bonds and
( 4 ) to pay costs
of issuance of the Series
1989 Bonds. The use of proceeds of
a single issue of bonds to finance costs
of the project and
to refund the Series 1982
Bonds is advantageous to and
in the
best interests of the City, and will
result in
lower issuance
costs and debt service savings (in comparison with an
issue
solely to provide financing of the project)
over the term of
the Series 1989 Bonds.
The negotiated sale of the
Series 1989
Bonds is necessary and expedient to enable the City to evaluate
the financial feasibility
and legality of issuing the Series
1989 Bonds.
Pursuant to the
authority recited in Section
1, the
City hereby authorizes the lssuance
and sale of the Series 1989
Bonds, in the aggregate principal amount
of $5,625,000.
Piper,
Jaffray & Hopwood Incorporated, of Minneapolis,
Minnesota and
D. A. Davidson & Co., of Great Falls,
Montana (the Purchasers)
have submitted a bid to this Commission
to purchase the Series
1989 Bonds at a price of $5,625,000
upon the terms and conditions
set forth In the Bond Purchase Agreement
attached as Exhibit A
(the Bond Purchase Agreement). Said bid
is hereby determined
to be advantageous to and in the best
interests of the City,
and the sale of the S
eries 1989 Bonds is hereby awarded to
the
Purchasers. The City Manager and the Clerk of
the Commission
are hereby authorized and directed to execute the
Bond Purchase
Agreement on behalf of the City.
Section 5.
Terms of Series 1989 Bonds. The
Series
1989 Bonds shall mature, bear
interest, including additional
interest, and be subject
to redemption In accordance with
the
terms and conditions set forth
in the Bond Purchase Agreement.
Other terms and conditions of
the Series 1989 Bonds
and
provisions for the security
thereof shall be
established by
a supplemental resolution to
be adopted by this Commission.
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Section 6.
Effective Date. This resolution
shall
be in full force and effect
from and after its
final passage
and approval according to
law.
Passed by the
City Commission and approved by the
Mayor of the City of
Bozeman, Montana, this
13th day of March,
1989.
j!~
" Mayor Pro Tempore
Attest, _r2J:- _ ~ ~
!IIiIr ?i1:',~L~'PP'
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RlaGUII'tON
NO. 2740
lubltcstton
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City of Bozeman
Slate of ~'
,.
STATE OF MONTANA, } ss.
County of GiIIIi1tii '" .
I, Robin L. Sullivan; -clefk .C)f
County of Gallatin,
the City OcmITllllllOiT 6fth.
City of Bozeman, t,4onta"'a, do
Vivie Portnell
hereby cerllfly that the forego-
, being duly sworn,
Ing Is the trUe and correct trlle
and number" of Commission
deposes and says: That ..lihe is FYi nc:i.ual Clerk
Resolution No,.
2740 passed
and adopted at a regular
DRily Chronicle, a newspaper of general circulation,
aessJon" tl1er60f held
on the
of the Bozeman
13th day of March, 1989.
Dated this 14th day of ~h.
printed and published in Bozeman, Gallatin County, Montana; and that the
1989;
ROBIN L. SULLIVAN
_Cllli'k_QLtl1e
City Commission
notice hereunto annexed ( Commission Resolution No. 2740
)' ,
has been correctly published in the regular and entire issue of every number of said paper/
/
for --l... consecutive insertion
, the first of which publicatio
de n the 16th
day of March 19
J!2..., and the last on the 16th
89
Subscribed and sworn to before me this 16th
~ 89
day of /.. arc / . 19 /
(~- J~ /l
,,- - ':.../
Notary Public for the State of Montana, residing at (
Bozeman, Montana
NOTARY PUBLlr,/or the state of Montana
Residing a.\ BuW:\1dr1, Montana
My Commissi00 tJxpires July 6. 1990
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