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HomeMy WebLinkAboutResolution 2703 Relating to bond sale for SID 654, street improvements: 7-05-88 .~ -cr." __=~. --=_n,_ '" . , COMMISSION RESOLUTION NO. 2703 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, RELATING TO SPECIAL IMPROVEMENT DIS- TRICT NO. 654; AUTHORIZING AND PROVIDING FOR THE ISSU- ANCE AND SALE OF SPECIAL IMPROVEMENT DISTRICT NO. 654 BONDS, IN THE AMOUNT OF $48,000.00 FOR THE PURPOSE OF FINANCI NG THE ENGINEERING DESIGN, CONSTRUCTION, INSTAL- LATION, INSPECTION AND ENGINEERING CERTIFICATION OF ASPHAL T PAVING, CURB AND GUTTER AND STORM DRAINAGE IMPROVEMENTS ON A PORTION OF LEA WAY AND ALL OTHER NECESSARY APPURTENANCES TO LOCAL STANDARDS LESS SIDE- WALKS. 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 Improve- ment District No. 654 (the District) for the purpose of financing the costs of accomplishing the engineering design, construction, installation, inspection and engineering certification of asphalt paving, curb and gutter and storm drainage improvements on a portion of Lea Way and all other necessary appurtenances to local street standards less sidewalks (the Improvements). The amount of bonds necessary to be sold to pay the District's share of the Improvements is $48,000.00. 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. 654 in an ag- gregate principal amount of $48,000.00. The Bonds shall be dated as of September 1, 1988, and shall bear interest, payable semi-annually on January 1 and July 1 of each year commencing January 1, 1989, at the rate or rates des- ignated by the successful bidder at public sale herein authorized and as ap- proved by this City Commission. I f issued as seria I bonds, the Bonds shall mature on July 1 in each of the following years and amounts: Year Amount - 1989 $ 1 ,000.00 1990 2,000.00 1991 2,000.00 1992 2,000.00 1993 2,000.00 1994 2,000.00 1995 2,000.00 1996 2,000.00 1997 3,000.00 1998 3,000.00 1999 3,000.00 2000 3,000.00 2001 3,000.00 ..--.'''.--.--- _... f .1 - 2 - 2002 3,000.00 2003 3,000.00 2004 3,000.00 2005 3,000.00 2006 3,000.00 2007 3,000.00 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 and interest payable semi-annually on January 1 and July 1, commencing January 1, 1989, and, subject to prior redemption and prepay- ment, continuing through January 1, 2007. Serial bonds shall be in the denom- ination of $1,000 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 signa- tures of the City Manager, Director of Finance and Clerk of the City Commis- sion. Amortization bonds shall be preferred. Section 3. Notice of Sale. The Bonds shall be opened on August 1, 1988, at 11: 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 August 1,1988, at 2:00 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 Sections 7-12-4204 and 7-7-4251 through 7-7-4254, M.C.A., in the Bozeman Daily Chronicle, once a week for two (2) . consecutive weeks preceding the 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 and made a part hereof. The Notice of Sale shall be in substantially the form set forth in Exhibit A. PASSED AND ADOPTED on this 5th day of July 1988. ATTEST: iT!;; ~~ - L. L Clerk of the Commission ~PROVED AS TO FORM: . ~E!:~- " City Attorney ---------- . ----.--.....".-.-- ....-.. .' EXHIBIT A NOTICE OF SALE OF BONDS of $48,000.00 SPECIAL IMPROVEMENT DISTRICT NO. 654 OF THE CITY OF BOZEMAN, MONTANA NOTICE IS HEREBY GIVEN by the City Commission of the City of Bozeman, Montana, that bids will be received until 11 :00 a.m., Mountain Day- light Savings Time on the 1 st day of August 1988, 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 1 st day of August 1988, at the hour of 2:00 o'clock p.m., Mountain Daylight Savings Time, at the Commis- sion Room in the City Hall, 411 East Main Street, Bozeman, Montana, will sell to the highest and best bidder for cash, either amortization or serial bonds drawn against the funds of Special Improvement District No. 654 in the total aggregate principal amount of $48,000.00 Bonds (the Bonds) for the purpose of financing the engineering design, construction, installation, inspection and engineering certification of the asphalt paving, curb and gutter and storm drainage improve- ments on a portion of Lea Way, and all other necessary appurtenances to local street standards less sidewalks. 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, both principal and interest to be payable in equal semi-annual installments on each January 1 and July 1, commencing January 1, 1989, and subject to prior redemption and prepayment, continuing through January 1, 2007. If serial bonds are issued and sold, the Bonds will be issued in the denomina- tion of $1,000 each or any integral multiple or fraction thereof of single matu- rities. The serial bonds will mature on July 1, subject to prior redemption and prepayment, in the following years and amounts: Year Amount - 1989 $ 1 ,000.00 1990 2,000.00 1991 2,000.00 1992 2,000.00 1993 2,000.00 1994 2,000.00 .~ _._,_.~-,-,--- " ) - 2 - 1995 2,000.00 1996 2,000.00 1997 3,000.00 1998 3,000.00 1999 3,000.00 2000 3,000.00 2001 3,000.00 2002 3,000.00 2003 3,000.00 2004 3,000.00 2005 3,000.00 2006 3,000.00 2007 3,000.00 The Bonds I whether amortization or serial bonds, will be issued as fully regis- tered bonds, will bear an original issue date and be registered as of September 1, 1988, and will bear interest at the rate or rates designated by the successful bidder at the sale, plus one-half of one percent per annum. I nterest will be payable semi-annually on January 1 and July 1 of each year commencing Janu- ary 1, 1989. 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 date 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 moneys 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 I nterest and Bond Account of the District Fund and to provide funds for the Revolving Fund by levying a tax or making a loan '- "' - 3 - from the General Fund to the extent authorized by law. The City of Bozeman has outstanding as of June 30, 1988, $8,202,000.00 principal amount of Special Improvement District Bonds, and has a cash balance of $423,955.32 in its Spe- cial Improvement District Revolving Fund. 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 Pay- ing Agent). BIDS AND AWARD OF SALE Terms of Bid. Each bid must be for 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 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 wi II be considered. Receipt 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 11: 00 a.m., Mountain Daylight Savings Time, on August 1, 1988. Each envelope must be marked as follows: "Bid for $48,000.00 Special Improvement District No. 654 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 re- sults 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 infor- mality or irregularity in any and all bids. 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 $960.00 drawn and issued by a national banking association located in Montana or by any banking corporation incor- ~ .-.-- .^ ~ ____._____...n_._ ,,_. _ -- -- - - . J , - 4 - porated 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 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 al- lowed on the bid security. Additiona I 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 therefor in immediately available funds 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 pur- chaser. The cost of the printing of the bonds will be paid by the District. t Closing Certificates and Opinions. 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. A copy of the legal opinion will be printed on the reverse side of the Bonds at the request of the pur- chaser. The District will deliver a certificate stating that no litigation in any manner questioning the validity of the Bonds in then pending, or to the best knowledge of the City threatened, along with other customary closing certifi- cates. ROBIN L. SULLIVAN Clerk of the Commission Publication Dates: Sunday, July 17. 1988 Sunday, July 24. 1988 I I ---..-....-- ..-..- - . "; . . , CERTIFICATION OF MINUTES RELATING TO $48,000.00 Special Improvement District No. 654 Bonds Issuer: City of Bozeman, Gallatin County, Montana Governing Body: City Commission Kind, date, time and place of meeting: A regular meeting held on August 1, 1988, at 2:00 p.m., in the Commission Room of the Municipal Building. 411 East Main Street, in Bozeman, Montana. Members present: Mayor Stiff, Commissioner Hawks, Commissioner Vant Hull, Commissioner Goehrung, Commissioner Martel Members absent: None Documents attached: Minutes of said meeting (pages): COMMISSION RESOLUTION NO. 2703 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, RELATING TO SPECIAL IMPROVEMENT DIS- TRICT NO. 654; AUTHORIZING AND PROVIDING FOR THE ISSU- ANCE AND SALE OF SPECIAL IMPROVEMENT DISTRICT NO. 654 BONDS, IN THE AMOUNT OF $48,000.00 FOR THE PURPOSE OF FINANCING THE ENGINEERING DESIGN, CONSTRUCTION, INSTAL- LATION, INSPECTION AND ENGINEERING CERTIFICATION OF ASPHAL T PAVING, CURB AND GUTTER AND STORM DRAINAGE IMPROVEMENTS ON A PORTION OF LEA WAY AND ALL OTHER NECESSARY APPURTENANCES TO LOCAL STANDARDS LESS SIDE- WALKS. 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 certificate, 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 meet- ing, 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 5th day of July 1988. ~~L~~ Clerk of the Commission _._n._......