HomeMy WebLinkAboutResolution 3452 Call for sale of bonds, SID 669
RESOLUTION NO.
3452
RESOLUTION RELATING TO $1,160,000 SPECIAL
IMPROVEMENT DISTRICT NO. 669 BONDS; AUTHORIZING
THE ISSUANCE AND CALLING FOR THE PUBLIC SALE
THEREOF AND AUTHORIZING THE PLEDGE OF THE
REVOLVING FUND TO THE SECURITY THEREOF
BE IT RESOLVED by the City Commission of the City of Bozeman, Montana (the
"City"), as follows:
Section 1. Recitals.
(a) This Commission has duly and validly created and established in the City under
Montana Code Annotated, Title 7, Chapter 12, Parts 41 and 42, as amended (the "Act"),
a special
improvement district, designated as Special Improvement District No. 669 (the "District"),
for
the purpose of financing a portion of costs of certain public improvements of special
benefit to
the properties within the District (the "Improvements") and paying costs incidental
thereto,
including costs associated with the sale and the security of special improvement
district bonds of
the City drawn on the District (the "Bonds"), the creation and administration of
the District and
the funding of a deposit to the City's Special Improvement District Revolving Fund
(the
"Revolving Fund"). The total estimated costs of the Improvements, including such
incidental
costs, to be financed by the District are $1,160,000. The costs of the Improvements
are to be
paid from the proceeds of the Bonds, which are to be payable primarily from special
assessments
to be levied against property in the District, which property will be special1y
benefited by the
Improvements in an amount not less than $1,160,000.
(b) The City is authorized by Montana Code Annotated, Section 7-12-4204(1) to sel1
the
Bonds at a price less than the principal amount thereof, but including interest
thereon to the date
of delivery, ifthis Commission determines that such sale is in the best interests
of the District
and the City.
(c) It is necessary that the Bonds be issued and sold in an aggregate principal
amount of
$1,160,000 to finance the costs of the Improvements, including incidental costs,
described in
Subsection (a). The costs of the Improvements are currently estimated, as follows:
Construction
$844,158
Construction Management 66,479
Engineering
109,215
Contingency
105,538
Administration
34,800
Resolution and Advertisements 300
Revolving Fund Deposit 58,000
Costs of Issuance
17,410
Bond Discount
23 ,200
Total
$1,259,100
A CTEP grant in the amount of$99,100 will be used to pay for the lighting component
of
the project.
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Section 2. Detennination of Public Interest in Allowing Bond Discount. Pursuant
to the
authority described in Section 1, this Commission hereby detennines to fix the
minimum price
for the Bonds at $1,136,800, plus interest accrued thereon to the date of delivery.
Such
minimum bid will enable bidders to bid more efficiently for the Bonds by pennitting
them to
submit their bids based on actual market conditions without adjusting the interest
rates thereon to
provide compensation for their purchase of the Bonds. This procedure will facilitate
the sale of
the Bonds at the lowest interest rates, which is in the best interests of the District
and the City.
Section 3. Findings and Detennination to Pledge the Revolving Fund. In the Resolution
of Intention To Create the District, adopted on November 27,2000, this Commission
found it to
be in the public interest, and in the best interest of the City and the District,
to secure payment of
principal of and interest on the Bonds by the Revolving Fund and authorized the
City to enter
into the undertakings and agreements authorized in the Act in respect of the Bonds,
based on the
factors required to be considered under Section 7-12-4225(4) ofthe Act. Those findings
and
detenninations were ratified and confinned in the resolution adopted by this Commission
on
February 20,2001, creating the District, and are hereby ratified and confinned.
It is hereby
covenanted and recited that the City has the power under the Act to pledge the
Revolving Fund
to payment of the principal of and interest on the Bonds.
Section 4. Tenns of the Bonds. This Commission hereby authorizes the issuance and
sale of the Bonds, to be denominated "Special Improvement District No. 669 Bonds,"
of the City
in the aggregate principal amount of $1,160,000 (the "Bonds") for the purpose of
financing the
Improvements. The Bonds shall be dated, as originally issued, as of August 15,2001,
and shall
bear interest payable semiannually on January 1 and July 1 of each year, commencing
January 1,
2002, at a rate or rates designated by the successful bidder at public sale and
approved by this
Commission. The Bonds shall be issued as serial bonds and shall mature on July
1 in each of the
following years and amounts:
Year
Amount Year
Amount
2002
$65,000 2012
$60,000
2003
60,000 2013
60,000
2004
60,000 2014
60,000
2005
60,000 2015
60,000
2006
60,000 2016
60,000
2007
60,000 2017
60,000
2008
60,000 2018
65,000
2009
60,000 2019
65,000
2010
60,000 2020
65,000
2011
60,000
The Bonds shaH be issuable only as fully registered bonds and shall be executed
by the
manual or facsimile signatures of the Mayor, City Manager and the Clerk of the
Commission.
The Bonds shaH be secured by the Revolving Fund.
Section 5. Public Sale. The Bonds shall be sold at a public competitive sale which
is
hereby called and shall be held at a regular meeting of this Commission on August
6,2001, at
6:00 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
7-12-4204,
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7-7-4252 and 17-5-106, in the 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
and mailed in substantially the form set forth as Exhibit A to this resolution
(which is hereby
incorporated herein and made a part hereof) 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.
Section 6. Official Statement. The Administrative Services Director ofthe City and
other officers of the City in cooperation with D.A. Davidson & Co., financial consultants
to the
City, are hereby authorized and directed to prepare on behalf ofthe 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 notice of sale adopted in Section
4 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. The Administrative Services Director
is authorized
on behalf of the City to deem the official statement near "final" as of its date,
in accordance with
Rule 15c2-12(b)(1) under the Securities Exchange Act of 1934.
Section 7. Construction Bids. Since construction bids will be opened on July 26,2001,
the Commission hereby authorizes the Administrative Services Director to reduce
the principal
amount of the Bonds to be issued and to revise the notice of sale prior to publication
to take into
consideration lower than anticipated construction bids, if applicable.
Section 8. Continuing Disclosure. In order to permit bidders for the Bonds and other
participating underwriters in the primary offering of the Bonds to comply with
paragraph (b)(5)
of Rule 15cl-12 promulgated by the Securities and Exchange Commission under the
Securities
Exchange Act of 1934 (the "Rule"), the City will covenant and agree, for the benefit
ofthe
registered holders and beneficial owners from time to time of the outstanding Bonds,
in the
resolution prescribing the terms of the Bonds to provide annual reports of specified
information
and notice of the occurrence of certain events, if material. The City is the only
"obligated
person" in respect of the Bonds within the meaning of the Rule for the purposes
of disclosing
information on an ongoing basis. A description of the undertaking is set forth
in the Official
Statement. Failure of the City to enter into an undertaking substantially similar
to that described
in the Official Statement would relieve the successful bidder of its obligation
to purchase the
Bonds. The City has complied in all material respects with any undertaking previously
entered
into by it under the Rule.
PASSED AND ADOPTED by the City Commission of the City of Bozeman, Montana,
this 16th day of July, 2001.
~tJ~r--
(}L./ ~ Mayor
Attest:
Clerk of the Commission
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EXHIBIT A
NOTICE OF BOND SALE
$1,160,000 SPECIAL IMPROVEMENT DISTRICT NO. 669 BONDS
CITY OF BOZEMAN, MONTANA
NOTICE IS HEREBY GIVEN that the City of Bozeman, Montana (the "City"), will sell
to the highest and best bidder for cash, as evidenced by sealed bids, the above-described
Bonds
drawn against the fund of Special Improvement District No. 669 in the principal
amount of
$1,160,000.
Sealed bids for the purchase of the Bonds will be received until 11 :00 A.M., M.T.,
on
Monday, August 6, 2001, at the office of the Clerk of the Commission in the City
Hall, at 411 E.
Main Street, Bozeman, Montana, at which time the bids will be opened and tabulated.
The City
Commission of the City will meet at 6:00 P.M. on the same day in the Commission
Room in the
City Hall, at which time the Board will consider the bids received and, if a responsive
and
acceptable bid is received, award the sale ofthe Bonds to the responsive bidder
whose bid
reflects the lowest true interest cost (TIC).
Purpose and Security
The Bonds will be issued for the purpose of financing the cost of construction
of certain
local improvements (the "Improvements") within or for the benefit of Special Improvement
District No. 669 (the "District"), in accordance with the provisions of Montana
Code Annotated,
Title 7, Chapter 12, Parts 41 and 42, as amended (the "Act"). The Bonds will be
special, limited
obligations of the City and do not constitute general obligations of the City.
The Bonds are payable primarily from the collection of a special tax or assessment
which
is a lien against the assessable real property within the District benefited by
the Improvements to
be undertaken therein or therefor. The special assessments are payable in equal,
semiannual
installments over a 19-year term, with unpaid installments of the special assessments
bearing
interest at a rate equal, from time to time, to the sum of (i) the average rate
of interest borne by
the then outstanding Bonds, plus (ii) one-half of one percent (0.50%) per annum.
The Bonds are further secured by the Special Improvement District Revolving Fund
of
the City (the "Revolving Fund"). The City will agree to make a loan from the Revolving
Fund to
the district fund established for the District to make good any deficiency then
existing in the
principal and interest accounts therein and to provide funds for the Revolving
Fund by levying a
tax or making a loan from the City's general fund to the extent and for the period
authorized by
the Act.
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Date and Type
The Bonds will be dated, as originally issued, as of August 15,2001, and will be
issued
as negotiable investment securities in registered form as to both principal and
interest.
Maturities and Form
The Bonds shall be issued as serial bonds and shall mature, subject to redemption,
on
July 1 in the following years and amounts:
Year
Amount
Year Amount
2002
$65,000
2012 $60,000
2003
60,000
2013 60,000
2004
60,000
2014 60,000
2005
60,000
2015 60,000
2006
60,000
2016 60,000
2007
60,000
2017 60,000
2008
60,000
2018 65,000
2009
60,000
2019 65,000
2010
60,000
2020 65,000
2011
60,000
Book Entrv
The Bonds will be issued by means of a book entry system with no physical distribution
of Bonds made to the public. The Bonds will be issued in fully registered form
and one Bond,
representing the aggregate principal amount of the Bonds maturing in each year,
will be
registered in the name of Cede & Co. as nominee of The Depository Trust Company
("DTC"),
New York, New York, which will act as securities depository of the Bonds. Individual
purchases ofthe Bonds may be made in the principal amount of $5,000 or any multiple
thereof
of a single maturity, through book entries made on the books and records of DTC
and its
participants. Principal and interest are payable by the registrar to DTC or its
nominee as
registered owner of the Bonds. Transfer of principal and interest payments to participants
of
DTC will be the responsibility ofDTC; transfer of principal and interest payments
to beneficial
owners by participants will be the responsibility of such participants and other
nominees of
beneficial owners. The purchaser, as a condition of delivery of the Bonds, will
be required to
deposit the Bonds with DTC.
Redemption
Mandatory Redemption. If on any interest payment date there will be a balance in
the
District Fund after payment of the principal and interest due on all Bonds drawn
against it, either
from the prepayment of special assessments levied in the District or from the transfer
of surplus
money from the Construction Account to the Principal Account, outstanding Bonds,
or portions
thereof, in an amount which, together with the interest thereon to the interest
payment date, will
equal the amount of such funds on deposit in the District Fund on that date are
subject to
mandatory redemption on that interest payment date. The redemption price shall
equal the
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amount of the principal amount ofthe Bonds to be redeemed plus interest accrued
to the date of
redemption.
Optional Redemption.
The Bonds are subject to redemption, in whole or in part, at the
option of the City from sources of funds available therefor other than those described
under
"Mandatory Redemption" on any interest payment date; provided, however, the Bonds
shall not
be called for redemption before July 1, 2006, from the proceeds of refunding special
improvement district bonds or warrants. The redemption price shall equal the principal
amount
of the Bonds to be redeemed plus interest accrued to the date of redemption.
Selection of Bonds for Redemption. Ifless than all of the Bonds are to be redeemed,
Bonds shall be redeemed in order of the stated maturities thereof. If less than
all Bonds of a
stated maturity are to be redeemed, the Bonds of such maturity shall be selected
for redemption
in $5,000 principal amounts selected by the Registrar by lot or other manner it
deems fair.
Interest Payment Dates. Rates
Interest will be payable each January 1 and July 1, commencing January 1, 2002,
to the
registered owners of the Bonds as such appear in the bond register as of the close
of business on
the 15th day (whether or not a business day) of the immediately preceding month.
All Bonds of
the same stated maturity must bear interest from date of original issue until paid
at a single,
uniform rate. Each rate must be expressed in an integral multiple of 1/8 or 5/100
of 1 %. No
supplemental or "B" coupons or additional interest certificates are permitted.
Interest will be
calculated on the basis of a 360-day year consisting of twelve 30-day months.
Bond Registrar. Transfer Agent
and Paving Agent
The Administrative Services Director of the City will act as 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 appoint a
suitable bank or trust company as a successor Registrar.
Deliverv
Within 45 days after the sale, the City will deliver to the Registrar the printed
Bonds
ready for completion and authentication. The original purchaser of the Bonds must
notify the
Registrar, at least five business days before issuance of the Bonds, of the persons
in whose
names the Bonds will be initially registered and the denominations of the Bonds
to be originally
issued. Ifnotification is not received by that date, the Bonds will be registered
in the name of the
original purchaser and, if serial bonds, will be issued in denominations corresponding
to the
principal maturities of the Bonds. On the day of closing, the City will furnish
to the purchaser
the opinion of Bond Counsel hereinafter described, an arbitrage certification and
a certificate
stating that no litigation in any manner questioning the validity of the Bonds
is then pending or,
to the knowledge of officers of the City, threatened. Payment for the Bonds must
be received by
the City in immediately available funds at its designated depository on the day
of closing. The
successful bidder shall submit to the Clerk of the Commission not earlier than
48 hours after the
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award of sale and not later than the day of closing a certificate, in fonn satisfactory
to Bond
Counsel, as to the initial reoffering price of each stated maturity of the Bonds
and stating that at
least ten percent of the principal amount of such Bonds of each stated maturity
has been sold at
such respective prices.
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) ofthe 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.
Legal Opinion
An opinion as to the validity of the Bonds and the exclusion of the interest thereon
from
gross income for federal income tax purposes and Montana individual income tax
purposes will
be furnished by Dorsey & Whitney LLP, of Missoula, Montana, and Minneapolis, Minnesota,
as
Bond Counsel. The legal opinion will be delivered at closing. The legal opinion
will state that
the Bonds are valid and binding special, limited obligations of the City enforceable
in
accordance with their terms, except to the extent to which enforceability thereof
may be limited
by the exercise of judicial discretion or by state or federal laws relating to
bankruptcy,
reorganization, moratorium or creditors' rights.
Tvpe of Bid and Good Faith Deposit
Sealed bids for not less than $1,136,800 and accrued interest on the principal
sum of
$1,160,000 must be mailed or delivered to the undersigned and must be received
at the office of
the Clerk of the Commission prior to the time stated above. Bidders must bid for
all or none of
the Bonds. Each bid must be unconditional.
Except for a bid by or on behalf of the Board of Investments of the State of Montana,
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
$23,200 payable to the order of the City is required for a bid to be considered.
If money,
cashier's check, certified check, bank money order, or bank draft is used, it must
accompany the
bid and be delivered to the Clerk of the Commission. 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 Clerk of the Commission, or the
City's
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 I :00 p.m., M.T., 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
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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 as liquidated
damages. The Deposit of the unsuccessful bidders will be returned immediately on
award ofthe
Bonds to the purchaser or after rejection of all bids. Instructions for wiring
the Deposit may be
obtained from the City's Financial Advisor, D.A. Davidson & Co., P.O. Box 8000,
Bozeman,
Montana 59715, (406) 582-3457.
Award
The bid authorizing the lowest true interest (TIC), will be deemed the most favorable.
The TIC is the effective cost of the Series 2001 Bonds based on bond proceeds received
at
closing calculated from the dated date of the Series 2001 Bonds. In the event that
two or more
bids state the lowest true interest cost, the sale of the Bonds will be awarded
by lot. No oral bid
will be considered. The City reserves the rights to reject any and all bids, to
waive informalities
in any bid and to adjourn the sale.
CUSIP Numbers
The City will assume no fee or obligation for the assignment or printing of CUSIP
numbers on the Bonds or for the correctness of any numbers printed thereon, but
will permit
such numbers to be assigned and printed at the expense of the purchaser, if the
original purchaser
waives any delay in delivery occasioned thereby.
Official Statement
The City will prepare an Official Statement relating to the Bonds which the City
will
deem, for purposes ofSEC Rule 15c2-12, to be final as of its date. The City will
deliver, at
closing, a certificate executed by the Mayor, the City Manager and the Clerk of
the Commission
to the effect that, to the best of their knowledge, as of the date of closing,
the information
contained in the Official Statement, including any supplement thereto, does not
contain any
untrue statement of a material fact or omit to state a material fact necessary
to make the
statements therein, in light of the circumstances in which they are made, not misleading;
provided that no comment will be made with respect to any information provided
by the
successful bidder for inclusion in any supplement to the Official Statement.
By submitting a bid for the Bonds, the successful bidder agrees: (1) to disseminate
to all
members of the underwriting syndicate copies of the Official Statement, including
any
supplements prepared by the City, (2) to file promptly a copy of the Official Statement,
including
any supplement prepared by the City, with a nationally recognized municipal securities
repository, and (3) to take any and all other actions necessary to comply with
applicable rules of
the Securities and Exchange Commission and the Municipal Securities Rulemaking
Board
governing the offering, sale and delivery of the Bonds to ultimate purchasers.
Within seven business days after the sale the City will furnish to the successful
bidder
without charge 100 copies of the final Official Statement relating to the Bonds.
The successful
bidder must notify the Clerk of Commission in writing within 7 business days after
the award of
sale of the Bonds if it requires additional copies of the Official Statement. The
cost of additional
copies shall be paid by the successful bidder.
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Continuing Disclosure
In order to permit bidders for the Bonds and other participating underwriters in
the
primary offering of the Bonds to comply with paragraph (b)(5) of Rule 15c2-12 promulgated
by
the Securities and Exchange Commission under the Securities Exchange Act of 1934
(the
"Rule"), the City will covenant and agree, for the benefit of the registered holders
and beneficial
owners from time to time ofthe outstanding Bonds, in the resolution prescribing
the terms of the
Bonds to provide annual reports of specified information and notice of the occurrence
of certain
events, if material. The City is the only "obligated person" in respect of the
Bonds within the
meaning of the Rule for the purposes of disclosing information on an ongoing basis.
A
description of the undertaking is set forth in the Official Statement. Failure
ofthe City to enter
into an undertaking substantially similar to that described in the Official Statement
would relieve
the successful bidder of its obligation to purchase the Bonds. The City has complied
in all
material respects with any undertaking previously entered into by it under the
Rule.
Information for bidders and bidding forms may be obtained from the undersigned
or from
D. A. Davidson & Co., P. O. Box 8000, Bozeman, Montana 59715, telephone (406) 582-3457,
financial consultants to the City.
Dated: July 16,2001.
BY ORDER OF THE CITY
COMMISSION
Robin L. Sullivan
Clerk of the Commission
City of Bozeman, Montana
Publish: July 22,2001
July 29,2001
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