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HomeMy WebLinkAboutResolution 2436 Providing for public sale of $5 million water bonds .. l' RESOLUTION NO. 2436 RESOLUTION NO. 2436 PROVIDING FO~ PUBLIC SALE OF $5,000,000.00 WATER SYSTEM REVENUE BONDS OF THE CITY OF BOZEMAN BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, as follows: 1. This Commission has investigated the facts necessary and hereby finds, determines and declares it to be necessary and desirable for the City to offer for sale $5,000,000.00 Water System Revenue Bonds, Series 1982 (the Series 1982 Bonds), for the purpose of financing improvements to the municipal water system (the System). 2. This Commission shall meet at the time and place specified in the Terms and Conditions of Sale herein contained for the purpose of receiving and considering written bids submitted for the purchase of the Series 1982 Bonds, and awarding the sale thereof. The Clerk of the Commission is hereby authorized and directed forthwith to cause notice of the time, place and purpose of said meeting to be pUblished in the Bozeman Daily Chronicle at Bozeman, Montana, and in The Bond Buyer, a financial newspaper published in New York, New York. 3. The following shall constitute the Terms and Conditions of Sale for the Series 1982 Bonds: TERMS AND CONDITIONS OF SALE $5,000,000 WATER SYSTEM REVENUE BONDS, SERIES 1982 CITY OF BOZEMAN, MONTANA THE SALE NOTICE IS HEREBY GIVEN that the City Commission of the City of Bozeman, Montana, will meet in the Commission Chambers in the Municipal Building in said City on Thursday, November 18, 1982, at 11:00 o'clock A.M., M.T., to receive and consider sealed bids for the purchase of $5,000,000 negotiable coupon Water System Revenue Bonds, Series 1982 (the Series 1982 Bonds) of said City. THE BONDS General Terms. The Series 1982 Bonds will be dated December 1, 1982, will be in the denomination of $5,000 each, numbered serially, will bear interest evidenced by attached coupons at a rate or rates designated by the successful bidder, subject to the limitations stated below, payable June 1, 1983, and semiannually on December 1 and June 1 in each year thereafter, and will mature serially on December 1 in the following respective years and amounts: Year Amount Year Amount 1983 $ 90,000 1993 $250,000 1984 100,000 1994 280,000 1985 115,000 1995 305,000 1986 125,000 1996 340,000 1987 140,000 1997 375,000 1988 155,000 1998 415,000 1989 170,000 1999 460,000 1990 185,000 2000 505,000 1991 205,000 2001 560,000 1992 225,000 Redemption: Series 1982 Bonds maturing in 1993 or thereafter are subject to redemption and prepayment at the option of the City, in inverse order of serial numbers, on December 1, 1982, or any interest payment date thereafter at redemption price of 101% of the principal amount thereof plus accrued interest if redeemed on or between December 1, 1992 and June 1, 1997 and a redemption price of 100% of the principal amount thereof if redeemed on December 1, 1997 or thereafter. Purpose and Security. The Series 1982 Bonds will be issued in accordance with the provisions of Montana Code Annotated, Title 7, Chapter 7, Part 44, for the purpose of providing monies to pay the costs of improvements to the City's municipal water system (the System) and to refund outstanding water revenue bonds. The Series 1982 Bonds will be payable solely from and will constitute a first lien upon the net revenues from time to time derived from charges imposed and collected for the services and facilities of the System, in excess of the current, reasonable and necessary expenses of operation, maintenance and repair thereof. BIDS AND AWARD OF SALE Terms of Bid. All Series 1982 Bonds maturing on the same date must bear interest from date of issue until paid at a single, uniform rate, expressed in integral mUltiples of 1/8 or 1/20 of 1% per annum, and represented by a single set of coupons. No rate may exceed 14% per annum and the difference between the lowest and highest rate may not be greater than 3% per annum. No supplemental or "B" coupons will be allowed. No bid for less than $5,000,000 plus accrued interest (based on a 360-day year) from December 1, 1982, until the date of delivery of the Bonds will be considered. Paying Agent. Principal and interest will be made payable at any suitable bank in the United States designated by the successful bidder within 48 hours after award of sale, subject to approval by the City Commission, and the City will pay the reasonable and customary paying agency charges. The City Commission will select the paying agent if the recommendation is not approved. Receipt of Bids. Sealed bids for the Series 1982 Bonds will be received by the City at the Municipal Building, Bozeman, Montana, until 11:00 A.M., Mountain Time, on Thursday, November 18, 1982. The bids will thereupon be opened and tabulated. Time and Place of Award. A tabulation of bids received will be presented to the City Commission at 12:00 0' clock noon, on the same day at its special . meeting to be held at the Municipal Building, Bozeman, Montana, at which time and place the City Commission will make the award of sale, if any. MBIA Insurance. The City has applied to the Municipal Bond Insurance Association (MBIA) to issue a policy (the MBIA Policy) insuring the payment of the principal of and interest on the Series 1982 Bonds. If MBIA commits to issue the MBIA Policy, the City will cause the Policy to be issued and will pay the premium therefor in the event the lowest responsible bid, determined as provided ,I under the heading "Basis of Award," is made subject to the issuance of the MBIA Policy with respect to the Series 1982 Bonds. Information regarding the MBIA Policy may be obtained from the City's financial consultant or City Director of Finance. Submission of Bids. Bids must be on the Official Bid form and enclosed in a sealed envelope marked as follows: "Bid for $5,000,000 Water System Revenue Bonds, Series 1982." Each envelope when delivered must indicate the name and address of the bidder, or, in the case of a group of bidders, of the representative. No alterations or amendments of the Official Bid form are permitted, except for those additions specifically provided for. Each bid shall state whether it is subject to issuance of the HBIA Policy with respect to the Bonds. Basis of Award. The award, if any, will be made to the bidder whose bid results in the lowest net interest cost (total interest from the date of Series 1982 Bonds to stated maturities, less any cash premium) plus the amount of the premium for the MBIA POlicy if the bid is made subject to the issuance of the HBlA Policy with respect to the Series 1982 Bonds. The amount of such premium may be obtained from the City's financial consultant or the City Director of Finance. The City reserves the right to reject any and all bids and to waive any informality or irregularity in any and all bids. Good Faith Check. Each bid must be accompanied by lawful money of the United States or a cashier's check, certified check, bank money order or bank draft drawn and issued by a national banking association located in Montana, or by any banking association incorporated under the laws of the State of Montana, payable to the City Director of Finance, in the amount of $100,000. No interest will be allowed on the bid security. The bid security of the unsuccessful bidders will be returned immediately on award of the Series 1982 Bonds to the successful bidder or after the rejection of all bids. The bid security of the successful bidder will be deposited by the City Director of Finance and retained by the City until the delivery of the Series 1982 Bonds, at which time such security will be applied against the purchase price for the Series 1982 Bonds or the proceeds thereof will be retained as liquidated damages in the event of the failure of the successful bidder to take and pay for the Series 1982 bonds in compliance with the terms of its bid. Information. Additional copies, in reasonable quantities, of the Terms and Conditions of Sale, the Official Bid Form, and the Official Statement, so long as available, and information regarding the Series 1982 Bonds and sale may be obtained from the City's financial consultant, Boettcher & Company, Denver Colorado, Attn. Mr. August Ganzenmuller, or Ms. Laura Lauer. DELIVERY Bonds. Delivery of the Series 1982 Bonds will be made against payment therefor in immediately available funds within 45 days of the date of sale at the office of the purchaser or, at his option, at a bank in the United States selected by him and approved by the City as its agent. The charge of the delivery agent must be paid by the purchaser, but all other costs will be paid by the City. The City will provide for the assignment and printing of CUSIP numbers on the Series 1982 Bonds, but will assume no responsibility for the correctness of the CUSIP numbers printed thereon. Legal Opinion and Closing Certificates. At the time of delivery of the Series 1982 Bonds the City will also deliver to the successful bidder the legal opinion of Dorsey & Whitney, Minneapolis, Minnesota. The legal opinion will state that the Series 1982 Bonds are valid and binding special obligations of the City, in accordance with their terms, payable solely from the Net Revenues of the system pledged and appropriated to the Revenue Bond Account of the Water System Fund of the City, and that the Series 1982 Bonds are a first and prior lien on the entire net income of said water system. A copy of the legal opinion will be printed on the reverse side of the Bonds. Dorsey & Whitney has not been retained to prepare or review the Official Statement and assumes no responsibility for and will express no opinion with respect to the accuracy, completeness or sufficiency thereof. The City will also deliver a certificate stating that no litigation in any manner questioning the validity of the Series 1982 Bonds is then threatened or pending, along with other customary closing certificates. Dated: November 8, 198/. BY ORDER OF THE CITY CO~~ISSION /s/ Alfred M. Stiff Mayor Bozeman, Montana I' ~ ~ .. 4. Any other actions taken, resolutions passed or forms of notices of sale approved on this date with respect to the Series 1982 Bonds are hereby confirmed and ratified. PASSED by the City Commission of the City of Bozeman, Montana, and approved by the Mayor of said City on this 8th day of November, 1982. ATTEST: r?d~ d ~~ Clerk of the Commission . " '- !