HomeMy WebLinkAboutResolution 2329 Prescribing form, terms and covenants for repayment of SID 630: 5-27-81
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COMMISSION RESOLUTION NO. 2329
RESOLUTION
RELATING TO $90,000 SPECIAL IMPROVEMENT DISTRICT NO. 630
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:
I Section
1. Recitals. It is hereby
found, determined and declared as follows:
1.01. By Resolution No. 2266, adopted October 29,
1980, this Commission declared its intention
to create a special improvement district to be known as Special Improvement District No. 630 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 approximate
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. 2266 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,
I stated the estimated cost of the improvements, described the boundaries
of the district. designated
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 improve-
ments, and the Commission did therefore by
Resolution No. 2283, adopted December 10, 1980, create
Special Improvement District No. 630, 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 improve-
ments in Special Improvement District No. 630 were prepared by the
engineers acting for the City,
qt)tY ~ ~m kif N'tft ~~ fd/:/tIim ,!f1*f frtI=I flifr/Y!./ and were
thereupon exami ned and approved
I by this Commission.
An advertisement for bids for construction of said improvements was published
in the official newspaper of the City on January 30 and February 6, 1981, calling 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 City 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 specifications was the proposal
submitted by Long
COMMISSION RESOLUTION NO. 2329
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Construction Co., of Billings, Montana, whose bid specified unit prices
aggregating the sum of
$68,934.00, based upon quantities of work and materials estimated in
the plans and specifications.
A contract for construction of the improvements was therefore awarded
to said bidder, subject to
the right of owners of property 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, I
which election the property owners failed to make, whereupon the City
and the successful bidder
entered into a written contract 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, specifications,
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 $90,000, which
amount will be levied and
assessed upon all property within the improvement district on the basis
described in the reso-
lution of intention.
The Commission has jurisdiction and is required by law to levy and assess
such balance, to collect such 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
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 suf- I
ficient 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 $120,000.
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 $120,000.
As indicated in Section 1.05 hereof, the current estimate of costs i$ $90,000, and
consequently, it is necessary to reduce the proposed bond issue to
$90,000. The purchaser of
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 I
it is advantageous for the City to accept 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.
COMMISSION
RESOLUTION NO. 2329
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439
1.07.
All acts, conditions and things required by the Constitution and laws of the State
of 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
I and have
been performed in regular and due form, time and manner as so required.
S
ection 2. Special Improvement District No. 630 Bonds.
For the purpose of paying the
costs and expenses incurred in construction of the
improvements authorized to be constructed in
Special
Improvement District No. 630, 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. 630 Bonds in the total principal amount of $90,000, payable solely from the Special
Improvement
District No. 630 Fund. The bonds shall be dated and registered as of April 1, 1981,
and shall
be 90 in number and numbered in the order of their registration serially from 1 through
90, each
in the denomination of $1,000. The bonds shall mature January 1, 2001, subject to redemp-
tion 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
I shall be
payable at the office of the Director of Finance. Interest shall be paid by the Director
of Finance from the Special Improvement District
No. 630 Fund on presentation when due of the
coupons appertaining to 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 than 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.
I
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
fully set forth in Exhibit A attached hereto and
by this reference made a part hereof.
Section 5. Execution, Reqistration 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. 2329
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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 Mayor 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 April
1, 1981. and shall be delivered by the Director of Finance to the purchaser upon pay-
I
ment 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 price, but the proceeds of the bonds shall be credited by the Director
of Finance
forthwith to the Special Improvement District No. 630 Fund, and used sOlely for the
payment
of the cost and expenses necessarily incurred in the completion of the improvements here-
tofore
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. 630 Fund.
6.0l.
There is hereby created and established a fund designated as "Special Improvement
District
No. 630 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 District Fund
I
so much
of said special assessments as is collected as interest payment. Any installment of any
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*Sond 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 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
I
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 proportion
to
the amounts
of the deficiencies on the respective dates of receipt of such money, until all interest
* Interest Account in the District Fund, and shall issue an
order authorizing a loan or advance
from the
Revolving Fund to the Dtstrict Fund in an'amoLintsufficient to make good any deficienc~
then existing
in the
COMMISSION RESOLUTION NO. 2329
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441
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
fund for pajffient and
I 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. 630 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 assess-
ments originally levied and appropriated to the District Fund equal
to the number of installments
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 issued 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. 630 Fund and the Special
Improvement 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
agreements contained in this resolution.
The provisions hereinabove made with respect to the
I District 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 sub-
sequent negotiation thereof to the purchaser.
7.02.
The City will do all acts and things necessary to enforce the provisions of the
construction contract and bonds referred to in Section 1.04 hereof
and to ensure the completion
of the improvements in Special Improvement District No. 630 in accordance
with the plans and
specifications and within the time therein provided. and will pay all
costs thereof promptly
as incurred and allowed out of the Special Improvement District No.
630 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. 630 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 $90.000. 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 perio4 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. 2329
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442
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 payment shall include interest for one year on that payment and the then remaining
I
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 installment 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 ordering 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 collected as it would have been if the first levy had been enforced
I
including the levy and collection 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. 630, the contract for construc-
tion of improvements 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 litigation
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. Authenti
cation 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
COMMISSION RESOLUTION NO.
2329
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443
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.
Section 9. Effective Date. This resolution shall be in full force and effect
I from and after its passage.
Passed and adopted by the City Commission of Boz=~an, Montana, this 27th day of May,
1981. '
/)';
t6/~
ATTEST:
~~!J~
n erim C erk of the City Commission
State of Montana )
County of Gallatin)
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. 2329 was published by title and number in
I 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.
~ ~~ J"i1J'4-0
Interim Cler of the City Commission
I
COMMISSION RESOLUTION NO. 2329
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