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HomeMy WebLinkAboutResolution 2096 Sale of SID No. 591 --- . - --'-'-'-~- '---...------~--,... ....--,---- --- ~ ~'--' ~~--_. -----~--.~,._,.,.-.......... 270 CUvMISSION REffiLurION m. 2096 RESOLurIClf AWARDING SALE OF $440,000 SPECIAL IMPROVEMENT DISIRIGr 00. 591 InIDS, AND PREEUtIBING THEIR ~ AND TERMS AND CDVENANTS OF TIIE CITY FOR THE SECURITY OF THE lDLDERS THEREDF. BE IT RESOLVED by the Ci ty COmmission of the Ci ty of Bozeman, Montana, as follows: Section 1. Red tals. It is hereby found, deterarlned and declared as follows: I 1.01. By Resolution No. 1952, adopted March 15, 1978, this COmmission declared its in- tention to create Special Improvement District No. 591 for the purpose of making special improve- ments within and for the special benefit of said district, which resolution designated the number of the district, described the boundaries thereof, and stated the general character of the improvements to be unde therein, in accordance with the provisions of Montana Code Annotated, Title 7, Chapter 12, Parts 41 and 42. By said resolution this Commission also declared its intention to cause the cost and expense of making suCh improvement to be assessed against the properties included within the boundaries of the district. 1. 02. Notice of the passage of said resolution was given by publication in the Bozeman Dai ly Chronicle, a legal, dai ly newspaper published within the Ci ty and by mai ling a copy of such notice to every person, finn or corporation, or the agent of such person, finn or corpor- ation, having real property within the proposed district listed in his name upon the last completed assessment roll for state, county or school district taxes, at his last known address. Said notice described the general character of the improvements proposed to be unde, stated the estimated cost of the improvements, 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, and referred to the resolution of intention, Qesignated above, as being on file in the office of the Clerk of the Commission for the desc~ption of the boundaries of said district, all as provided in said 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 such district, and after consideration thereof, it was detennined and de- clared 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 said improvements, and the COmmission did therefore by Resolution No. 1957, adopted April 12, 1978, create Special Improvement District No. 591, 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- I ments in Special Improvement District No. 591 were prepared by the engineers acting for the City, and were thereupon ex~ined and approved by this Commission. An advert isement for bids for construction of said improvements was published in the official newspaper of the City on October 10 and October 17, 1978, calling for bids to be received on November 1, 1978, on which date the bids theretofore received were opened and exwmined. After referring the bids to the engineers for the City it was detennined that the lowest regular proposal for the furnishing of all work and materials required for construction of said improvements in accordance with approved plans and specifications was the proposal submitted by Clause Excavating, in Worden, Montana, whose bid specified unit prices aggregating the sum of $355,361.75, based upon quantities of work and materials estimated in the plans and specifications. A contract for construction of said 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, which election the property owners failed to make, Whereupon the City and said bidder entered into a written contract for construction of said improvements upon the bidder having executed and filed a satisfactory bond with respect thereto. 1.05. !tis presently estimated that the cost and expense connected wi th and incidental to the formation of said improvement district, including costs of preparation of plans, specifi- cations, maps, profiles, engineering superintendence and inspection, preparation of assessment rolls, expenses of naking the assessments, the cost of work and materials under the construction contract, and all other costs and expenses, will be $440,000, Which amount will be levied and assessed upon all property within the improvement district on the basis described in the resolution of intent ion. 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 said 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 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 paying the total cost and expense of making the improvements, I which is to be assessed against the property within the district, this Commission called for the sale of bonds in the principal amount of $440,000. 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. 1. 07. All acts, conditions and things required by the Constitution and laws of the State of M::mtana, including MOntana Code Annotated, Title 7, Chapter 12, Parts 41 and 42, in order to make the bonds herein authorized valid and binding special obligtions in accordance with their terrrs and in accordance with the teras of this resolution have been done, do exist, have happened and have been perfonred in regular and due form, time and manner as so requi red. CXlvMISSlrn REEDLUl'IC1'J N). 2096 ...-----,~ ._- ,-_._~-~,-.~._,. ..._,~_......~.......a...__,.~...~ - ._~,- ,_...............a..-..~ ...... ---....... ~-.......~--....................' -_._-_ .-...................__ .__.~,_,& "_ ~ ,..__. n"........_~.--'"- ~_,_,~._~~_.._ -................-...Ao____ __~_,_""'___' __. ._...._..~_...._.. n. ~__.___.. ._. ~ . _ L.. ____~,._. .... ..__ .. - -..... -............- ,-. ~~-,- 271 Section 2. Special Improvement District No. 591 Bonds. For the purpose of paying the costs and expenses incurred in construction of the improve- ments authorized to be constructed in Special Improvement District No. 591, and in anticipation of collection of special assessments to be levied therefor, and in accordance with the public offering and contract of sale described in Paragraph 1.06 hereof, the City of Bozeman shall forthwith issue and deliver to the purchaser its Special Improvement District No. 591 Bonds in I the total principal amount of $440,000, payable solely from the Special Improvement District No. 591 Fund. The bonds shall be dated and registered as of August 1, 1979 and shall be 440 in number and nurrbered serially from 1 through 440, each in the denomination of $1,000. The bonds shall mature on January 1, 1999, subject to redemption and prepayment prior thereto in accordance with Section 3 hereof. The bonds shall be payable to bearer, and shall bear interest from their date of registration until called for redemption or paid in full at the basic and additional rates and for the periods of time set forth on Exhibit B attached hereto. Interest shall be payable on the 1st day of January of each year, commencing January 1, 1980, 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. The interest shall be paid by the Director of Finance from the Special Improvement District No. 591 Fund on presentation of the coupons belonging thereto when due, 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 ftmd after paying the interest due on all bonds drawn against it, the Director of Finance shall call in for payment outstanding bonds in an amount, which, together with the interest thereon to the date of rederrption, will equal the arrount of the fund on that date. The date of redemption shall be fixed by the Director of Finance, \\ho shall give notice by publication once in a newspaper published in the Cit?;: and by written notice to any holder or holders of such bonds if their addresses be known, of t e numbers of the bonds and the date on which payment will be made, which date shall be not less than ten days after the date of publi- cation or of service of notice. On the date so fixed interest shall cease. Section 4. Fonn of Bonds. The bonds and the interest coupons appurtenant thereto shall be drawn in substantially the fonn 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 hereto. I Section 5. Execution, Registration and Delivery of Bonds. The bonds shall be prepared under the direction of the Clerk of the Connrlssion and shall then be signed by the facsimile signature of the Mayor and the manual signature of the Clerk, and the interest coupons appurtenant thereto shall be executed and authenticated by the printed, lithographed or engraved facsimile signatures of the Mayor and Clerk. The bonds and coupons of each issue shall then be registered in order of their serial numbers by the Director of Finance, as of August 1, 1979, and shall be delivered by the Director of Finance to 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 purchasers 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. 591 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 \\hen due. Section 6. special Improvement District No. 591 Fund. 6.0l. There is hereby created and established a fund designated as "Special Improvement Dis trict No. 591 Fund," \\hich shall be rrnintained by the Director of Finance of the Ci ty on the books and records of the City separate and apart from all other funds of the City. Wi thin said Fund there shall be rraintained separate accounts, designated as the "Bond Account" and "Interest Accoun t ," respect i ve I y. Upon the collection of the installrr.ent of principal and interest due on November 30 of each year on the special assessments to be levied with respect to the improvements in said 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 ins talltrent 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 I interest shall be paid as accrued thereon to the date of redemption, in accordance with the provisions of Mbntana Code Annotated, Sections 7-12-4203 and 7-12-4206. 6.02. The Canniss ion shall annually or more often if necessary issue an order authori zing a loan or advance from the Special Inproverrent District Revolving Fund to said District Fund in an account sufficient to make good any deficiency then existing in the Interest Account in said District Fund, and shall issue an order authorizing a loan or advance fram the Revolving Fund to the District Fund in an amount sufficient to rrnke good any deficiency then existing in the Bond Account of said 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 frOOl the General Fund as authorized by ~~ntana Code Annotated, Section 7-12-4222. In the event that the balance on hand in the Re- volving Fund fifteen days prior to any date When interest is due on special improvement district CXMv1ISSICN REroLUI'ICN 00. 2096 - -. ...~.... ,-~.~ __ .__.I..~. .___ _ ,__ ~,,_.., __._~~,""'" ~__~_ ~...~._~&....._ __...-.&...-- __~_~_~__ ~~_ _.............~__.. ......-........~.~.. ~~...__,. ~..____.......__....__.".~_......._ _............~_...___ ~~____-----.-..-.L_ ___ _ ...-..,..........._. _ __ _~ .......,_.-.-.i'~,___,.....___.... ....~._~~.~.--.........._- 272 bonds of the City is not sufficient to make good all deficiencies then existing in the improve- ment 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 irrprovement 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 irrprovement district bonds of the City has been paid. On any date when all accrued interest on irrprovement district bonds of the City payable from funds for which the City has promised to make loans fran the Revolving Fund has been paid, any balance rennining in the Revolving Fund shall be loaned or I advanced to the improvement district fund for payment and redemption of bonds to the extent the irrprovement 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 Irrprovement District No. 591 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 said Lmprovement 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 pehnitted 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. 591 Fund and the Special Irrprovement District Revolving Fund described above as trust funds, separate and apart from all of its other funds, ~d 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 Improvement 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 con- struction contracts and bonds referred to in Paragraph 1.04 and to assure the completion of the irrprovements in Special Improvement District No. 591 in accordance with the plans and specifi- cations and within the time therein provided, and will pay all costs thereof promptly as in- curred and allowed, out of the Special Improvement District 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 I special assessments upon all property within the boundaries of Special Improvement District No. 591 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 $440,000.00. Such special assessments shall be levied in accordance with the basis therefor prescribed in the resolution of intention described above, payable in annual installments over a period of nineteen years, each annual installment being 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 1979 through 1998, inclusive, if not theretofore paid, and shall become delinquent on that 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, 1999, and each subsequent partial pa~nt shall include interest from one year on that payrrent and then rerrn.ining 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 only be extinguished for payment of the assessment with all penalties, cost and interest as provided in Mbntana 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 install- ments, as provided in ~~ntana 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 reassess and levy the sarre, including the ordering of work, with the s~e force and effect as if made at the time provided by law, ordi- nance or resolution relating thereto, and will reassess and re-Ievy the same with the sarre force and effect as an original levy thereof, as authorized in Montana Code Annotated, Section 7-12-4186. Any special assessment, or reassessment or re-Ievy 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 regu- I larityof the creation of Special Improvement District No. 591, the contracts for construction 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 rmking 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 the original purchasers of the bonds herein authorized and will furnish the purchasers with a copy of all documents, including pleadings, in connection with such litigation. CXMvlISSION REOOWTION N). 2096 - ...., ~ .....,.~ ~--,~-,---......................._......- ._~_., .. .--- .'.~~, ,- ,,'~- ,. .~~--......-... -.- ~_...Ii....,....__~,__.__ - -..... ,_ ......._....--.._~,.,_....... ..................... ~.........-....~ .-.._ .~__ __.,. ...........'----.0. ~"_ _. ......-.........--......_.... ..._ __.".... ........_.. _....o......-....__.........~___. ~ ____.,._ ~ .._~_ ,~.~_____~__ _...~,.. ,~.~__.~. .~ .......... . . ...-- ""'.,,- ~- ... - ~. - --~...........--...--.--------~--~-----.~- ._------~~-_.-........-~ ~-----~-....-.........~.....---.--.,...~_.. "- " 273 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 arrended. and the regulations thereunder. Section 8. Authentication of Transcript. I The City officers are hereby authorized and directed to furnish to the purchaser of said bonds. and to the attorneys approving legality thereof. certified copies of all proceedings relating to the issuance of said bonds and such other certificates and affidavits as may be required to show the right. power and authority of the City to issue said bonds. and all state- ments 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. Effect ive Date. This resolution shall be in full force and effect fram and after its passage. Passed and adopted by the Ci ty Conmission of Bozeman. M:mtana. the 29th day of August. 1979. ~/~A~ - ATTEST : - /""L .... .../ ' !:~?~ /.....!-'.4a~. .~ Clerk of the Corrmission "~ State of MOntana ) I County of Gallatin) Ci ty of Bozeman ) I. Erna V. Harding. Clerk of the City Commission of the City of Bozeman. do hereby certify that the foregoing Resolution No. 2096 was published in length in the Bozeman Daily Chronicle. a newspaper of general circulation printed and published in said City. in the issue dated the 12th day of September. 1979. and due proof of such publication is on file in my office. IN WITNESS \\HEREX)F I hereunto set my hand and affix the corporate seal of my office this 5th day of December. 1979 . );;/~~. c;-'<..,:;7?.cC/.. ~:c2 -...-- .~ ?Q' Clerk of the City CommissIon I CXMI1ISSIC1IJ REroLUI'ION ID. 2096 -~~~-_. -- ........_..~..... .~. r ....IlL.- __.L..... ~ _. . .--.~.._~...~_..~~. ~ _...........~~. .~--...._.~__~....-..-....L.__......-.........__.._.__ ..... .~.-....__~~ _......~._.__....o.-.............._ ..........~~._~~.....__............... _~......._.~......__.n ................-~ ...".~_. _ ..~~_~_" _~__.. ."'-___ ._h.J~"-__.