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HomeMy WebLinkAboutResolution 2178 Providing for sale of general obligation library building bonds: 4-02-80 -.....--- .. . _.. n.~. ... -- - ~.- -.... 7 COMMISSION RESOLUTION NO. 2178 PROVIDING FOR THE ISSUANCE AND SALE BY THE CITY OF BOZEMAN, MONTANA, OF ITS GENERAL OBLIGATION LIBRARY BUILDING BONDS, SERIES 1980, IN THE PRINCIPAL AMOUNT OF $1,460,000. WHEREAS, at an election duly called and held in the City of Bozeman, Montana I (the "City) on November 7, 1978, there was submitted to the qualified electors of the City the question of issuing general obligation library bonds in an aggregate principal amount not to exceed $1,460,000; and WHEREAS, more than 40% of the qualified electors of the City entitled to vote on said question of issuing bonds voted thereon and a majority of the votes were cast in favor of issuance of the bonds; and WHEREAS, the City Commission (the "Commission") of the City deems it necessary and desirable at this time to proceed pursuant to law and provide for the issuance and sale of said bonds; BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA AS FOLLOWS: Secti on 1. Issuance of Bonds. Pursuant to part 42, chapter 7, title 7, Montana Code Annotated 1979 (the "Act") and to the authority conferred by the qua 1 i fi ed electors of the City at said election held November 7, 1978, there shall be issued by the City, for the purpose of acquiring a site for and constructing, equipping and furnishing a new municipal library in the City, $1,460,000 of General Obligation I Library Building Bonds, Series 1980 (the "Bonds"), said Bonds to bear interest at a maximum rate not to exceed seven per centum (7%) per annum, to be dated June 1, 1980, to be payable over a period commencing with their date and ending December 1, 1999, and to be callable for redemption at the option of the City on any interest payment date after the expiration of one-half of the term for which the Bonds are issued. The Bonds sha 11 be executed in the name and on behalf of the City by the Mayor and by the Di rector of Finance, and shall be attested by the Clerk of the Commission. Each Bond shall have the City seal affixed thereto. Any appurtenant coupons shall be executed by the Mayor and the Clerk of the City Commission. Section 2. Sale of Bonds. The Bonds shall be advertised for sale in the manner provided by the Act, and the Commission shall accept the bid for the Bonds which it considers most advantageous to the City, provided that the Commission may reject any and all bids and sell the Bonds at private sale if this is considered to be in the best interests oft h e City. If all bids are so rejected, or if no bids are received, the Commission shall negotiate the private sale of the Bonds upon the best terms practicable. The Bonds may be I issued either as amortization bonds or as serial bonds in the denomination of $5,000 each, and, in considering any bids received for the Bonds, the Commission shall, pursuant to the Act, give preference to amortization bonds over serial bonds, all other things being eq ua 1 . Section 3. Notice of Sale. There shall be published once in each calendar week in each of the four successive calendar weeks (four publications) immediately pre- ceding the week of May 4, 1980, in the Bozeman Daily Chronicle, Bozeman, Montana, and in such other publications as the Director of Finance shall deem advisable, a Notice COMMISSION RESOLUTION NO. 2178 __.m_. ._...__.._. _ .. -.... ..-. --.-... - -- - -...."... .__n_. ... - - .-.. -- .-, 8 - of Sale in substantially the following form: NOTICE OF SALE OF BONDS OF THE CITY OF BOZEMAN, MONTANA Notice is hereby given by the City Commission (the "Commission") of the City of Bozeman, Montana, that the Commission will, on the 7th day of May, 1980, I at the hour of 1:15 p.m.~ at its Commission Chambers in the Municipal Building in the City of Bozeman, Montana, sell to the highest and best bidder for cash either amortization or serial bonds of the said City in the total amount of One Million Four Hundred and Sixty Thousand Dollars ($1~460,000.) for the purpose of acquiring a site for, and constructing, equipping and furnishing a new municipal library. Amortization bonds will be the first choice and serial bonds will be the second choice of the Commission. If amortization bonds are sold and issued, the entire issue may be put into one single bond or divided into several bonds as the Commission may determine at the time of sale, both principal and interest to be payable in semiannual install- ments during a period of 20 years from the date of issue. If serial bonds are issued and sold, they will be in the denomination of Five Thousand Dollars ~5,000) each. The sum of Seventy Five Thousand Dollars ($75,000) of said serial bonds will become due and payable on the 1st day of December, 1981, and a like amount on the same day each year thereafter until all such bonds are paid. The first installment of principal, due on December 1, 1980, will be in the amount I of Thirty-Five Thousand Dollars ~35,000). The bonds, whether amortization or serial bonds, will bear date of June 1, 1980, will bear interest at a rate not exceeding 7% per annum, payable semiannually, June and on the 1st day of on December 1, 1980, and on the 1st day of/December in each year and will be redeemable on any interest payment date on or after June 1, 1990, at a price equal to par plus accrued interest only to the redemption date. Said bonds will be sold for not less than their par value with accrued interest to the date of delivery, and all bidders must state the lowest rate of interest at which they will purchase the bonds at par. The Commission reserves the right to reject any and all bids and to sell said bonds at private sale. All bids must be submitted in writing upon the Official Bid Form which will be furnished by the City to prospective bidders upon request, together with the City1s Preliminary Official Statement concerning the bonds. Bidders are requested to submit sealed bids specifying the lowest rate or rates of interest, not exceeding the rate set forth above, and cash premium above I par, if any, at which the bidder will purchase the Bonds. Interest in the case of serial bonds shall be evidenced until maturity by only one set of interest coupons payable to bearer. Bidders shall specify a rate or rates of interest in multiples of 1/20 or 1/8 of 1% per annum, with a maximum spread of 2% per annum between the highest and lowest interest rates bid for different bonds. Bids will be accepted for the entire bond issue only. COMMISSION RESOLUTION NO. 2178 -. --- .- 9 No discount bids will be accepted. No bid providing for supplemental coupons. for more than one coupon rate per maturity. or for "zero" interest rate coupons will be accepted. Any premium bid must be paid in lawful money of the United States of America I as a part of the purchase price. The Ci ty reserves the ri ght to reject any and all bi ds and to re-adverti se for the sale of said bonds. or to waive any defect or irregularity in any bid. Unless all bids are rejected. the bonds will be awarded to the bidder naming the lowest "net effective interest rate". As used herein. "net effective interest rate" means the net interest cost of the bonds divided by the sum of the products derived by multiplying the principal amount thereof coming due on each maturity date by the number of years from their date to their respective maturity dates. As used herein "net interest cost" means the total amount of interest to accrue on the bonds from their date to their respective maturity dates. less the amount of any premium above par at which the bonds are being sold. All bids other than by or on behalf of the Board of Investments of the State of Montana must be accompanied by a certified check in the sum of Seventy-Three Thousand Dollars ($73.000). payable to the order of the City. which shall bear no interest and will be forfeited by the successful bidder in the event he shall fail or refuse to complete the purchase of said bonds in accordance with the terms of his bid. I All bids shall be addressed to the City Commission of the City of Bozeman. Montana. and delivered to the Clerk of the City Com . ssion. Attest: rfA0~~ /'$~k Clerk of the ~1ty Commission Publish in: Bozeman Daily Chronicle Publish on: Monday. April. 7. April 14. April 21. and April 28. 1980 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. 2178 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 above dates, 1980. and due proof of such publica- tion is on file in my office. IN WITNESS WHEREOF I hereunto set my hand and affix the corporate seal of my office this 30th day of April. 1980. ~/ Clerk of the City COMMISSION RESOLUTION NO. 2178 ---".~. -. -.....-- - -- ,~.. --.. ~._. ,n ---'-"- --..-.-.- -.-.- ." 10 Section 4. Severabi 1 i ty. If any section, subsection, paragraph, clause or other provision of this Resolution shall for any reason be held to be invalid or unenforce- able, the invalidity or unenforceability thereof shall not affect any of the remaining sections, subsections, paragraphs, clauses or provisions of this Resolution, the intention being that the provisions hereof are severable. I Section 5. General Repealer. All resolutions, bylaws, orders and other instruments, or parts thereof, inconsistent herewith are hereby repealed to the extent only of such inconsistency. This repealer shall not be construed to revive any resolution, bylaws, order or other instrument, or part thereof, heretofore repealed. PASSED AND ADOPTED by the City Commission of the City of Bozeman at a regular session thereof held on the 2nd day of April, 1980. Attest: 6/ /~ L' ._.~~, / ~ ,,~~ Clerk of the C,ty Co~ion (SEAL) I - I COMMISSI ON RESOLUTION NO. 2178 - -.- . ..- ..- -.-- ---. --- ... ...-. -",,-- ._n_."_._