HomeMy WebLinkAboutResolution 2328 Prescribing form, terms and covenants for repayment of SID 629: 5-27-81
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COMMISSION RESOLUTION NO. 2328
RESOLUTION RELATING TO $71,000 SPECIAL IMPROVEMENT DISTRICT NO. 629
BONDS; PRESCRIBING THE FORM AND TERMS AND COVENANTS OF THE CITY FOR
THE REPAYMENT
THEREOF
BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, as follows:
Section 1- Recitals. It is hereby
found, determined and declared as follows: I
1.0I.
By Resolution No. 2265, adopted October 29, 1980, this Commission declared its
intention
to create a special improvement district to be known as Special Improvement District
No. 629
for the purpose of making special improvements within and for the special benefit of
the district,
which resolution designated the number of the district, described the boundaries
thereof,
and stated the general character of the improvements to be made therein and an approxi-
mate estimate
of the costs thereof, in accordance with the provisions of Montana Code Annotated,
Title 7,
Chapter 12, Parts 41 and 42. By that resolution this Commission also declared its
-
intention
to cause the cost and expense of making such improvements to be assessed against the
properties
included within the boundaries of the district.
1.02.
Notice of the passage of Resolution No. 2265 was given by publication five times in
the Bozeman
Daily Chronicle, a legal daily newspaper published within the City and by mailing a
copy of
such notice to persons, firms or corporations, or the agents of such persons, firms or
corporations,
having real property within the proposed district listed in their names upon the
last completed
assessment roll for state, county or school district taxes, at their last known
addresses.
The notice described the general character of the improvements proposed to be made,
stated
the estimated cost of the improvements, described the boundaries of the district, desig- I
nated the
time when and the place where the Commission would hear and pass upon all protests
made against
the making of such improvements or the creation of such district, all as provided
in the
resolution of intention.
1. 03.
At the time and place specified in the notices hereinabove described, this Commission
met to
hear, consider and pass upon all protests made against the making of such improvements
for the
creation of the district, and after consideration thereof, it was determined and declared
that insufficient
protests against the creation of the district or the proposed work had been
filed in
the time and manner provided by law by the owners of the property to be assessed for
the improvements,
and the Commission did therefore by Resolution No. 2282, adopted December 10,
1980, create
Special Improvement District No. 629, and did order the proposed improvements in
accordance
with the resolution of intention designated in paragraph 1.01 hereof.
1.04.
Plans, specifications, maps, profiles and surveys for construction of the improvements
in Special
Improvement District No. 629 were prepared by the engineers acting for the City, and
were thereupon
examined and approved by this Commission. An advertisement for bids for construc-
tion of
said improvements was published in the official newspaper of the City on January 30 and I
February
6, 1981, call ing for bids to be received on February 18, 1981 after which the bids
theretofore
received were opened and examined. After referring the bids to the engineers for
the Ci
ty it was determined that the lowest regular proposal for the furnishing of all work and
materials
required for constructing the improvements in accordance with the approved plans and
COMMISSION RESOLUTION NO.
2328
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pYddi/idd specifications was the proposal submitted by M.Boylan Contracting
of Bozeman, Montana,
whose bid specified unit prices aggregating the sum of $51,119.30,
based upon quantities of work
and materials estimated in the plans and specifications.
A contract for construction of the im-
provements was therefore awarded to said bidder, subject to the right
of owners of property
I liable to be assessed to elect to take the work and enter into a written
contract therefor in
the manner provided by Montana Code Annotated, Section 7-12-4147, which election the property
owners failed to make, whereupon the City and the successful bidder entered into a written con-
tract for construction of the
improvements upon the bidder having executed and filed a bond
satisfactory to this Commission and in the form and manner provided
by Montana Code Annotated,
Title 18, Chapter 2, Part 2.
1. 05.
It is currently estimated that the cost and expense connected with and incidental to
the formation of the improvement district, including costs of preparation
of plans, specificat,ions,
maps, profiles, engineering superintendence and inspection, preparation
of assessment rolls,
expenses of making the assessments, the cost of work and materials
under the construction contract,-
and all other costs and expenses, will be $71,000, which amount will
be levied and assessed upon
all property within the improvement district on the basis described
in the resolution of intention.
The Commission has jurisdiction and is required by law to levy and
assess such balance, to collect
such ~~l~~t~J/t~/t~lJ~tt ~~t~ special assessments and credit the same
to the special improvement
district fund created for the district, which fund is to be maintained
on the official books and
records of the City separate from all other City
funds, to be used solely for payment of interest
I when due on the bonds herein authorized and for redemption of such
bonds in order of their regis-
tration whenever and as often as the balance in said fund after payment of interest due is suffici-
ent for the purpose.
1.06.
For the purpose of financing the total cost and expense of making the improvements,
which is to be assessed against the property within the district, this
Commission called for the
sale of bonds in the principal amount of $83.000.
No bids were received at a public sale noticed
and conducted in accordance with applicable statutory provisions.
Officers of the City then
entered into negotiations with D. A. Davidson & Co., Incorporated,
of Great Falls, Montana, for
the private sale of the bonds on the same terms and conditions as those
of the public sale, pur-
suant to Montana Code Annotated, Section 7-7-4254(2).
By resolution adopted March 4, 1981, the
Commission awarded the sale of the bonds to D. A. Davidson & Co., Incorporated.
Because the contract for construction of the improvements was let in
an amount smaller than
originally estimated, the cost of making the improvements has not reached
the initial estimate
of $83,000.00.
As indicated in Section 1.05 hereof, the current estimate of costs is $71,000.00,
and consequently, it is necessary to reduce the proposed bond issue
to $71,000. The purchaser of
I the bonds, D. A. Davidson, & Co., Incorporated, has agreed to purchase
the bond issue so reduced
on the terms and conditions of its bid of March 4, 1981.
The Commission hereby determines that
it is advantageous for the City to confirm and ratify the bid by D. A. Davidson & Co., Incorporated
for the reduced issue because the bid by D. A. Davidson & Co., Incorporated
was the only bid
received for the bonds conforming to the terms and conditions of their
sale, and market conditions
are now unfavorable so that resale of the bonds may result in a substantially
higher rate of
interest.
1.07.
All acts, conditions and things required by the Constitution and laws of the State of
COMMISSION RESOLUTION NO.
2328
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432
Montana, including Montana Code Annotated, Title 7, Chapter 12, Parts
41 and 42, in order to
make the bonds herein authorized valid and binding special obligations
in accordance with their
terms and in accordance with the terms of this resolution have been
done, do exist, have happened
and have been performed in regular and due form, time and manner as
so required.
Section 2.
Special Improvement District No. 629 Bonds. For the purpose of paying the
I
costs and expenses incurred in construction of the improvements authorized
to be constructed in
Special Improvement District No. 629, and in anticipation of the collection
of special assessments
to be levied therefor, and in accordance with the public offering described
in Section 1.06 hereof,
the City of Bozeman shall forthwith issue and deliver to the purchaser
its Special Improvement
District No. 629 bonds in the total principal amount of $71,000, payable
solely from the Special
Improvement District No. 629 Fund.
The bonds shall be dated and registered as of April 1, 1981,
and shall be 71 in number and numbered in the order of their registration
serially from 1 through
71, each in the denomination of $1,000.
The bonds shall mature January 1, 2001, subject to
redemption and prepayment prior thereto in accordance with Section
3 hereof. The bonds shall be
payable to bearer and shall bear interest at the rate of 10.75% per
annum from their date of
registration until called for redemption or paid in full.
Interest shall be payable semiannually
on the 1st day of January and the 1st day of July of each year, commencing
January 1, 1982,
represented by coupons appurtenant to each bond.
Section 3.
Payment of Principal and Interest. The principal of and interest on the bonds
shall be payable at the office of the Director of Finance.
Interest shall be paid by the Director
I
of Finance from the Special Improvement District No. 629 Fund on presentation
when due of the
coupons appertair'r1!1gto the bonds, and any balance remaining in the
fund shall be applied to the
payment of the principal and the redemption of the bonds
in the order of their registration as
evidenced by their serial numbers.
Whenever there is any balance in the fund after payment of the
interest due on all bonds drawn against it, the Director of Finance
shall call in for payment out-
standing bonds in an amount which, together with the interest thereon
to the date of redemption,
will equal the amount of the fund on that date.
The date of redemption shall be fixed by the
Director of Finance, who shall give notice, by publication once in
a newspaper published in the
City and by written notice to any holder or holders of such bonds if
their addresses be known, of
the numbers of the bonds to be redeemed and the date on
which payment will be made, which date
shall be not less then ten days after the date of publication or of
service of notice. The
Director of Finance shall at the same time mail such notice to the
original purchaser of the bonds,
D. A. Davidson & Co., Incorporated.
On the redemption date so fixed interest on the bonds to be
redeemed shall cease.
Section 4.
Form of Bonds. The bonds and the interest coupons appurtenant thereto shall
be drawn in substantially the form set forth in Montana Code Annotated,
Section 7-12-4202, as more I
fully set forth in Exhibit A attached hereto and by this reference
made a part hereof.
Section 5.
Execution, Registration and Delivery of Bonds. The bonds shall be prepared
under the direction of the Clerk of the Commission and shall be executed
by the printed, lithographed
or engraved facsimile signature of the Mayor and the manual signature
of the Clerk of the Commission
COMMISSION
RESOLUTION NO. 2328
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and the interest coupons appurtenant thereto shall be executed and
authenticated by the printed,
lithographed or engraved facsimile signatures of the ~1ayor and Clerk
of the Commission. The bonds
and coupons of each issue shall then be registered in order of their
serial numbers by the Director
of Finance, as attested by his printed, lithographed or engraved facsimile
signature, as of
I April 1, 1981, and shall be delivered by the Director of Finance to
the purchaser upon payment of
the par value thereof, premium, if any, and accrued interest from the registration date to the date
of such delivery and payment.
The purchaser shall not be obligated to see to the application of
the purchase pri ce, but the proceeds of the bonds shall be cred i
ted by the Di rector of Fi nance
forthwith to the Special Improvement District No. 629 Fund, and used
solely for the payment of the
cost and expenses necessarily incurred in the completion of the improvements
heretofore ordered,
except that the accrued interest received shall be applied in payment
of interest on the bonds
when due.
Section 6. Special Improvement District No. 629 Fund.
6.0l.
There is hereby created and established a fund designated as "Special Improvement
District No. 629 Fund," which shall be maintained by the Director of
Finance on the books and
records of the City separate and apart from all other funds of the
City. Within the District
Fund there shall be maintained separate accounts, designated as the
"Bond Account" and "Interest
Account," respectively.
Upon the collection of the installment of principal and interest due on
November 30 and May 31 of each year on the special assessments to be
levied with respect to the
improvements in the district, the Director of Finance shall credit
to the Interest Account in the
I District Fund so much of said special assessments as is collected as
interest payment. Any i nsta 11-
ment of any such special assessment paid prior to its due date with interest accrued thereon to the
nearest bond call date shall be credited with respect to principal
and interest payments the same
as other assessments are credited to the District Fund.
All moneys in the Interest Account and the
Bond Account shall be used first to pay interest due, and any remaining
moneys shall be used to pay
bonds.
Redemption of bonds therefrom shall be in order of their registration numbers, and interest
shall be paid as accrued thereon to the date of redemption, in accordance
with the provisions of
Montana Code Annotated, Sections 7-12-4203 and 7-12-4206.
6.02.
The Commission shall annually or more often if necessary issue an order authorizing a
loan or advance from the Special Improvement District Revolving Fund
to the District Fund in an
amount sufficient to make good any deficiency then existing in the
Interest Account in the District
Fund, and shall issue an order authorizing a loan or advance from the
Revolving Fund to the District
Fund in an amount sufficient to make good any deficiency then existing
in the Bond Account of the
District Fund to the extent that moneys are available in the Revolving
Fund. Pursuant to Ordinance
No. 612, the City has undertaken and agreed to provide funds for the
Revolving Fund by levying such
I tax or making such loan from the General Fund as authorized by Montana
Code Annotated, Section
7-12-4222. In the event that the balance on
hand in the Revolving Fund fifteen days prior to any
date when interest is due on special improvement district bonds of the City is not sufficient to
make good all deficiencies then existing in the improvement district
fund for which the City has
promised to make loans from the Revolving Fund, the balance on hand
in the Revolving Fund shall be
allocated to the funds of the improvement district in which such deficiencies
then exist in pro-
COMMISSION RESOLUTION NO. 2328
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portion to the amounts of the deficiencies on the respective dates
of receipt of such money,
until all interest accrued on such special improvement district bonds
of the City has been paid.
On any date when all accrued interest on improvement district bonds
of the City payable from
funds for which the City has promised to make loans from the Revolving
Fund has been paid, any
balance remaining in the Revolving Fund shall be loaned or advanced
to the improvement district I
fund for payment and redemption of bonds to the extent the improvement
district fund is deficient
for such purpose, in an amount proportionate to the amount of such
deficiency. A deficiency shall
be deemed to exist in the Bond Account of the Special Improvement District
No. 629 Fund on any
date on which interest is due on bonds payable therefrom unless the
City has then or theretofore
redeemed bonds in a principal amount equal to the sum of all installments
of special assessments
paid prior to their due dates plus a fraction of the remaining principal
amount of the special
assessments originally levied and appropriated to the District Fund
equal to the number of install-
ments of such assessments then and theretofore due divided by the total
number of installments in
which such special assessments are permitted to be paid.
Section
7. Covenants. The City of Bozeman covenants and agrees with
the holder from
time to time of each of the bonds ~ssued pursuant to this resolution
that until all such bonds
and interest thereon are fully paid:
7.01-
The City will hold the Special Improvement District No. 629 Fund and the Special Im-
provement District Revolving Fund described above as trust funds, separate
and apart from all of
its other funds, and the City, its officers and agents, will comply
with all covenants and agree-
ments continued in this resolution.
The provisions hereinabove made with respect to the District I
Fund and Revolving Fund are in accordance with the undertaking and
agreement of the City made in
connection with the public offering of the bonds herein authorized
and the subsequent negotiation
thereof to the purchaser.
7.02.
The City will do all acts and things necessary to enforce the provisions of the con-
struction contract and bonds referred to in Section 1.04 hereof and
to ensure the completion of
the improvements in Special Improvement District No. 629 in accordance
with the plans and specifi-
cations and within the time therein provided, and will pay all costs
thereof promptly as incurred
and allowed, out of the Special Improvement District No. 629 Fund and
within the amount of the
bond proceeds appropriated thereto.
7.03.
The City will do all acts and things necessary for the final and valid levy of special
assessments upon all property within the boundaries of Special Improvement
District No. 629 in
accordance with the Constitution and laws of the State of Montana and
the Constitution of the
United States, in an aggregate principal amount not less than $71,000.
Such special assessments
shall be levied on the basis prescribed in the resolution of intention
described above, and shall
be payable in semiannual installments over a period of twenty years,
each installment being due I
in an amount equal to one-fortieth of the principal amount of each
assessment, except the final
installment due on November 30, 2000 which shall be due in an amount
equal to one-twentieth of
the principal amount of each assessment, with interest on the whole
amount remaining unpaid at
the rate or rates borne by the bonds, interest being payable with principal
installments. The
assessments to be levied will be payable on the 30th day of November
in each of the years 1981
COMMISSION RESOLUTION NO. 2328
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435
through 2000, inclusive, and on the 31st day of May in the years 1982
through 2000, inclusive, if
not theretofore paid, and shall become delinquent on such date
unless paid in full. The first
partial payment of each assessment shall include interest on the entire
assessment from the date
of registration of the bonds herein authorized to January 1, 1982,
and each subsequent partial
I payment shall include interest for one year on that payment and the
then remaining balance of the
special assessment. The assessments shall constitute
a lien upon and against the property against
which they are made and levied~ which
lien may be extinguished only by payment of the assessment
with all penalties, cost and interest as provided in Montana Code Annotated,
Section 7-12-4191.
No tax deed issued with respect to any lot or parcel of land shall
operate as payment of any in-
stallment of the assessment thereon which is payable after the execution
of such deed, and any tax
deed so issued shall convey title subject only to the lien of said
future installments, as provided
in Montana Code Annotated, Section 15-18-309.
7.04.
If at any time and for whatever reason any special assessment or tax herein agreed to
be levied is held invalid, the City and this Commission, its officers
and employees, will take
all steps necessary to correct the same and to re-assess and re-levy
the same, including the order-
ing of work, with the same force and effect as if made at the time
provided by law, ordinance or
resolution relating thereto, and will re-assess and re-levy the same
with the same force and effect
as an original levy thereof, as authorized in Montana Code Annotated,
Section 7-12-4186. Any
special assessment, or re-assessment or re-levy shall, so far as is
practicable, be levied and
I collected as it would have been if the first levy had been enforced
including the levy and collec-
tion of any interest accrued on the first levy.
7.05. There is now no litigation threatened or pending
questioning the validity or regularity
of the creation of Special Improvement District No. 629, the contract
for construction of improve-
ments therein or the undertaking and agreement of the City to levy
special assessments therefor
and to make good any deficiency in the collection thereof through the
levy of taxes for and the
making of advances from the Special Improvement District Revolving
Fund, or the right and power
of the City to issue the bonds herein authorized, or in any manner
questioning the existence of
any condition precedent to the exercise of the City's powers in these
matters. If any such liti-
gation should be initiated or threatened, the City will forthwith notify
in writing D. A. Davidson
& Co., Incorporated, the original purchaser of the bonds herein authorized,
and will furnish said
purchaser with a copy of all documents, including pleadings, in connection
with such litigation.
7.06.
The City will make no use of the proceeds of bonds issued hereunder which, if such
uses had been reasonably expected on the date of issue thereof, would
have caused them to be
arbitrage bonds under the provisions of Section 103(c) of the Internal
Revenue Code of 1954, as
amended, and the Treasury Regulations promulgated thereunder.
I Section
8. Authentication of Transcript.
The City officers are hereby authorized and
directed to furnish to the purchaser of the bonds, and to the attorneys approving the legality
thereof, certified copies of all proceedings relating to the issuance of the bonds and such other
certificates and affidavits as may be required to show the right, power
and authority of the City
to issue the bonds, and all statements contained in and shown by such
instruments, including any
heretofore furnished, shall constitute representations of the City
as to the truth of the statements
purported to be shown thereby.
COMMISSION RESOLUTION NO. 2328
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Section 9. Effective Date.
This resolution shall be in full force and effect from and
after its passage.
Passed and adopted by the City Commission of Bozeman, Montana, this 27th day of May,
1981.
~k~/~
Approved: I
r~ayo r
Attest: ~ d! tlOiffAlhw-o
Interim Clerk of the City Commission
State of Montana
)
County of Gan atin )
City of Bozeman
)
I, Robin L. Williams, Interim Clerk of the City Commission of the city of Bozeman, do
hereby certify that the foregoing Resolution No. 2328 was pub-lished
by title and number in
the Bozeman Daily Chronicle, a newspaper of general circulation printed
and published in said
City, in the issue dated the 31st day of May, 1981, and due proof of
such publication is on file
in my office.
IN WITNESS WHEREOF I hereunto set my hand and affix the corporate seal of my office
this 8th day of June, 1981.
I
fPoI4 d ~
Interim Clerk 0 t e Clty ommission
I
COMMISSION RESOLUTION NO. 2328
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