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HomeMy WebLinkAboutResolution 2298 Prescribing form, terms and covenants for payment of SID 625 bonds: 1-21-81 n. _"r~'~_.~' ,_.,._ ,n _. .... __. ~ ., ~..........----.~~-_.- -. ~..- 7 .~-. ',.-, r'_ _ ._.~.,. ~.. .. -_ _ ,.,~~........- ...-, .."..'. _~ .__,. --_" '.'..... T ..,_., '- """.-'-""- ._ __. _ _ ,_"",,'__r_'. 3'54 COMMISSION RESOLUTION NO. 2298 RESOLUTION PRESCRIBING THE FORM AND TERMS AND THE COVENANTS OF THE CITY FOR THE PAYMENT OF $1,850,000 SPECIAL IMPROVEMENT DISTRICT NO. 625 BONDS BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, as follows: Secti on I. Recitals. It is hereby found, determined and declared as follows: I 1.0I. By Resolution No. 2271, adopted November 5, 1980, this Commission declared its intention to create an extended special improvement district to be known as Special Improvement District No. 625 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. 2271 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 agent 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 improve- ments, and the Commission did theref6re by Resolution No. 2278, adopted December 10, 1980, create Special Improvement District No. 625, 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. 625 were prepared by the engineers acting for the City, and were thereupon examined and approved by this Commission. An advertisement for bids for construction of said improvements was published in the official newspaper of the City on October 2 and October I 9, 1980, calling for bids to be received on October 22, 1980 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 Construction of Billings, Montana, whose bid for Schedule I specified COMMISSION RESOLUTION NO. 2298 ~ ..~~._ c............ ~_~~~_,'_ _................__......._~..,..~ ,......~-"". .......~................~..._~.__,~............ ....~................o.......o.-........ ~_._~,& ____,_.. _.~_~,~~..~.~...,............~,_.._..., ........__... ___... ~_ ...,~_........-....................-._ ,,_.o\.~..........~ ._..,~............ ............... _..,... ,,'_....................,_.._ ........~..............."'_~,~._.....~~._.~,~_..u............' ,--,_. --.~~................. _..~,..~....,..~~~ 35'5 unit prices aggregating the sum of $412.566.20. and for Schedule II specified unit prices aggrega- ting the sum of $1.099.944.00. 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 I 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 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, ex- penses of making the assessments. the cost of work and materials under the construction contract. and all other costs and expenses. will be $1.850.000. 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 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 I authorized and for redemption of such bonds in order of their registration whenever and as often as the balance in said fund after payment of interest due is sufficient for the purpose. 1.06. For the purpose of financing initially 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 $2.460.000. After a public sale noticed and conducted in accordance with applicable statutory provisions. the bonds were sold to D. A. Davidson & Co.. of Great Falls. Montana. Because a 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 $2.460.000. As indicated in Section 1.05 hereof, the current estimate of costs is $1,850.000 and consequently, it is necessary to reduce the proposed bond issued to $1,850,000. The purchaser of the bonds D. A. Davidson & Co.. has agreed to purchase the bond issue so reduced on the terms and conditions of its bid on October 22, 1980. The City hereby determines that it is advantageous for it to accept the bid by D. A. Davidson & Co. for the reduced issue because the bid by D. A. Davidson & Co. was the only bid received for the bonds and no other interest in the sale was expressed to the City. and market conditions are now unfavorable so that resale of the bonds may result in a substantially higher rate of interest. I 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 and have been performed in regular and due form, time and manner as so required. Section 2. Special Improvement District No. 625 Bonds. For the purpose of paying the costs and expenses incurred in construction of the improvements authorized to be constructed in Special COMMISSION RESOLUTION NO. 2298 ~.__~. .~._................,._.....,~w~,..~ .____.._ .. .."___ .~.~_~_~__,.. '_',"'~,.~'~"n ".._." ................ r. .~. ..._._~.""""__,_~__~~.I..._.__~___'~'____~____~''''''_.,.~____.,_......~.,___~.~.._".,.,_,_._........,..,. _~___.,_.,~_..._._~,_~.,. -_..~~_... .. -'.~~ .~~......~ .. ._,~ ..~_.............~.........._.- ... _..,,_.~...~_.- - -. .356 Improvement District No. 625~ 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. 625 Bonds in the total principal amount of $1~850~000~ payable solely from the Special Improvement District No. 625 Fund. The bonds shall be dated and registered as of I January 1~ 1981 and shall be 1,850 in number and numbered in the order of their registration serially from 1 through 1~850~ each in the denomination of $1~000. The bonds shall mature January 1~ 2001~ subject to redemption and prepayment ~rior thereto in accordance with Section 3 hereof. The bonds shall be payable to bearer~ and bonds numbered 1 through 1,045 shall bear interest at the basic rate of 9.50% per annum and at the additional rate of 0.75% per annum~ bonds numbered 1~046 through 1~370 shall bear interest at the basic rate of 9.75% per annum and at the additional rate of 0.50% per annum~ and bonds numbered 1~371 through 1~850 shall bear interest at the rate of 10.25% per annum~ from their date of registration until called for redemption or paid in full. Interest shall be payable 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 of Finance from the Special Improvement District No. 625 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 I 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 pay- ment outstanding 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. On the date so fixed interest 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 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~ litho- graphed or engraved facsimile signature of the Mayor and the manual signature of the Clerk of I the Commission. 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 January 1~ 1981~ and shall be delivered by the Director of Finance to COMMISSION RESOLUTION NO. 2298 ...... ._ .", ...~"....~~.,. "~,,,,,,,,,,,,,,,,,...........-....,......_~........ __,~~,~_......~.. ~...~,_____._ _,~ ._~_,,_, .............__................ ___ .........__......_. . ~'...........-..._ . ..~,_--.......,..~._. .......~...................~.__..I_._.......-_~____"-_.... .........~~..~...._~. .__..~.....................J........_~ .~_ _ .__.....' _. ~ .................._...~...................c............~__..~ . _~~ ._ H5'1 the purchaser upon payment of the par value thereof plus 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. 625 Fund, and used solely I for the payment of the cost and expenses necessarily incurred in the completion of the improve- ments 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. 625 Fund. 6.01. There is hereby created and established a fund designated as "Special Improvement District No. 625 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 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 I 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 tax or making such loan from the General Fund as authorized by Montana Code Annotated, Section 7012-4222 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 I 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 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 COMMISSION RESOLUTION NO. 2298 _.,._,~. ~.,_._~~.............~__..........Lo."~~..iII. ~ & .. n_. . _~,,__ _ _'''_'''....~,_~__......__ n"'___~~'~'."_~"""""''' '''''''''_---'''''''''''''''''''''''_'''''''''''''''''''''''''''''''_''''~__~' ,_.,.,,~........__ ~.~ ,...-...........___._.,_.......................~~,..,~._._...~._ ......-~. .~ '" .~...............~~......~,-_..~'........._-~.~- ~_.." ..~~,.,-----... --,,~.- ~.~_._.,.~-- ~..._~-""'-_._....._" ...............'-"_..,,.~ ~. - .. -. -~ ~ --..--~ -.....,.-. - .~.- -.--------. --. ~-. _ ."r 358 advanced to the improvement district 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. 625 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 I 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 installments of such assessments then and theretofore due divided by the total number of installments in which such special assess- ments 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. 625 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 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. 7.02. The City will do all acts and things necessary to enforce the provisions of the construction contracts and bonds referred to in Section 1.04 hereof and to ensure the completion I of the improvements in Special Improvement District No. 625 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. 625 Fund and within the amount of the bonds 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. 625 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 $1,850,000. 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 in- stallment 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 bein~ payable with principal installments. The assessments to be levied will be payable on the 30th day of November in each of the years 1981 through 2000, inclusive, and on the 31st day of May in the years 1982 through 2000, inclusive, I 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 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 COMMISSION RESOLUTION NO. 2298 .................0._.... .._~''''''''''''''''._'''''''''''-~~._''''''''-''''''-''_'''''''.''_~'_-''-'''''~_'___~~_''_''''''''''' '''',,,,,,,,,,,,,,''__'''_---..f....~............,..,~ _ ._.. _ .~..-.....~__~....._........._.............._~ ~. .._ ......__.. .~." .._...............___~ .__.&.......~_ . _. ___..~.~ ~~.......~ _.........~..._~.............~~.........._._.__...._...........~........~~._"..................... ~~ ~_....~ ....~___...._~_.__".._~.... ..._~__ . _ .._._ _. ........... . ~ ~.~~................._,.~.. ".'--~~"'- -- on. .'...._ ---- ...--..-.. .__._ ."_'~"~7"'_"_'~~"."~'.___ -~--~._--'~ .~- ~._~...- 359 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 install- ments, as provided in Montana Code Annotated, Section 15-18-309. I 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 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. 625, 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 I litigation should be initiated or threatened, the City will forthwith notify in writing the original purchaser of the bonds herein authorized and will furnish the 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 regulations thereunder. 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. Section 9. Effective Date. This resolution shall be in full force and effect from and I after its passage. Passed and adopted by the City Commission ~t~is 21 day of January, 1981. , :J~ ."~"- ";'if ~ ....---......." ~-- r.1ayor ATTEST: if o-k ~ tJ/~ Clerk of the City Commission COMMISSION RESOLUTION NO. 2298 u.~..' ~...........___ ................._ __.........L..~, .._,~_ .. ~_ ~~_..............._~,....-......,____~., .~...._................ ___~_~~.~~~._,..,.__,.,..~,._ _~_~.... ____ _ .~__~~...... ..__.. n. ~__~_ __._,,~~.__..__..... _" _~.~____._,' ~~, _.~......."'-,- -, -- _n.. ~_," .--" ._-~.._.~--~.....~-~~~-,~ 'on ,_..~,....~.~_.......... _& .n ~. ~ - . ~- . - ~. 360 State of Montana ) County of Gallatin) City of Bozeman ) I, Erna V. Harding, Clerk of the Commission of the City of Bozeman do hereby certify that the foregoing Resolution No. 2298 was published by title and number in the Bozeman Daily I Chronicle, a newspaper of general circulation printed and published in said City, in the issue dated the 26th day of January, 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 9th day of February, 1981. ~d!~ C er of the City Commission I I COMMISSION RESOLUTION NO. 2298 k_.__._~. ."------""-~_.~. ........ _~...~_._.. _._._~ _...............__.~......~~_... .... -......~...........~.... ..._.& _.~...--_.......-.-............-.......~.... .............-..-...~.~ ._'--- -,..............._~.- ................~.........................__..._...--...-.-..~.~~.........~_.._,.~" .._..~_.. -~_._.~..........,,-_......................................"'~........-............ ..- ...~ .. ~ ..i-.._~____.